Article XIII D Section 4a defines Proportional Special Benefit Assessments as follows:
“An agency which proposes to levy an assessment shall identify all parcels which will have a special benefit conferred upon them and upon which an assessment will be imposed. The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the property related service being provided. No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.” Benefit Analysis
The improvements provided by this District and for which properties will be assessed have been identified as necessary, desired and/or required for the orderly development of the properties within the District to their full potential, consistent with the development plans and applicable portions of the City’s General Plan.
Special Benefits
The ongoing maintenance of landscaped areas within the District will provide aesthetic benefits to the properties within the District and each respective Zone and/or Sub-Zone therein and are intended to provide a more pleasant environment to walk, drive, live, and work. The primary function of these improvements and related amenities is to serve as an aesthetically pleasing enhancement and green space for the benefit of the immediately surrounding properties and developments for which the improvements are constructed and installed and/or are facilitated by the development or potential development of properties within the District. These improvements are an integral part of the physical environment associated with the parcels in the District and while some of these improvements may in part be visible to properties outside the District and/or the respective Zones and Sub-Zones, collectively if these improvements are not properly maintained, it is the parcels within the District and/or the respective Zones and Sub-Zones that would be aesthetically burdened. Additionally, many of the landscape improvements include parks, green spaces, and trails that provide visually pleasing open space areas that serve as an extension of the physical attributes of the parcels assessed, such as their front or rear yards and may also provide a greater opportunity for recreation as well as serving as a physical buffer and/or sound reduction buffer between the roadways and the properties in the District. Thus, the maintenance of these landscape improvements provides particular and distinct benefits to the properties and developments associated with those improvements.
Likewise, street lighting in the District is primarily useful for illuminating the streets that provide access to the properties in the District as well as the sidewalks and parking lanes associated with those properties. While it is recognized that street lights and traffic signals serve in part to enhance traffic safety, installation and construction of these improvements are for the most part, required by the development of properties within the district and these improvements provide three main special benefits to those properties: (i) property security benefit, (ii) pedestrian safety benefit, and (iii) parkway/roadway access benefit. Furthermore, because traffic circulation in the City is largely the result of local traffic to and from these properties by the property owners and guests, it is reasonable to assume that these properties derive a particular and distinct benefit from the street lighting that support the safe access to the properties and essentially all pedestrians and parking vehicles in the lit areas will, after dark, be directly associated with the assessed properties. As a result, the maintenance of these lighting improvements is a particular and distinct benefit to the properties and developments within the District and the Zones and Sub-Zones therein.
Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2024/2025
Collectively these landscaping and lighting improvements and related assessments enhance the security, overall use, presentation, and marketability of the properties, and ensure the long-term cost-efficiency of services that is obtained through the City provided maintenance (economy of scale), and the regulatory restrictions on future cost increases.
General Benefit
Landscaping General Benefit
In reviewing the location and extent of the specific landscaped areas and improvements to be funded by District assessments and the proximity and relationship to properties to be assessed, it is evident these improvements have been or will be installed as part of the development of properties within the District or are improvements that would otherwise be shared by and required for development of those properties. Although the District improvements are located on public streets or public areas that are typically visible and/or accessible to the general public, it is evident that the ongoing maintenance of these improvements are only necessary for the appearance and advantage of the properties within the District that are directly associated with those improvements and these improvements (particularly the level of maintenance and servicing) are not required nor necessarily desired by any properties outside the District and/or the respective Zones and/or Sub-Zones associated with those various improvements. It is also evident that the maintenance these improvements and the level of maintenance provided has a direct and particular impact (special benefit) only on those properties in proximity to those improvements and such maintenance beyond that which is required to ensure the safety and protection of the general public and property in general, has limited (if any) indirect or incidental benefit to the public at large or properties outside each respective Zone.
In the absence of a special funding Zone, the City’s maintenance of these improvements would for the most part, be limited to tree management, weed abatement, rodent control, and erosion control services for the various landscape areas. This basic or baseline level of service would typically provide for periodic servicing of these areas on an as-needed basis. This baseline level of service would provide for public safety and essential property protection to avoid negative impacts on adjacent roadways and vehicles traveling on those roadways and potential property damage, but results in a far less visually pleasing environment than is created with the enhanced levels of services associated with the regular landscape maintenance that can be provided through the District assessments.
On average, the cost to provide this baseline level of service for the District’s planned landscape areas is estimated to be approximately $0.012626 per square foot (approximately $550 per acre) which includes a five percent (5%) cost factor for City overhead and administration. This baseline service cost per square foot represents approximately five percent (5%) of the overall cost per square foot for the annual operation and maintenance of the landscape areas.
Other Landscaping General Benefits
In addition to the general benefit identified above, it is recognized that there are indirect or incidental general benefits to properties within the District as well as the general public that are associated with regular landscape maintenance services, including:
➢ Minimization of dust and debris; and
➢ Decreased potential water runoff from both properties and the landscaped areas.
Although these types of benefits might best be characterized as indirect consequences of the special benefit of the landscape maintenance provided to parcels served by the District, for the Pasadera Landscaping and Lighting District
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Fiscal Year 2024/2025
purposes of calculating proportional benefits, we assume these types of benefits to be general benefits, albeit general benefits that are extremely difficult to quantify. We estimate that the costs associated with these indirect benefits do not exceed one percent (1%) of the annual maintenance expenditure for the landscaping improvements.
The baseline general benefit costs and the indirect/incidental general benefit costs identified above shall be excluded from the special benefit assessment funding and not assessed to the parcels within the District. The total calculated general benefit cost for the landscaping improvements associated with each Zone and/or Sub-Zone is summarized in the table at the end of this section and is also identified in the budgets contained in Part III of this Report.
Lighting General Benefit
In reviewing the location and extent of the specific lighting improvements to be funded by District assessments and the proximity and relationship to properties to be assessed, like the landscaping improvements it is evident these improvements are being installed as a direct result of the development of the properties within the District or are lighting improvements that would otherwise be shared by and required for the development of those properties. It is also evident that the maintenance and servicing of these improvements has a direct and particular impact (special benefit) on those properties in proximity to those street lighting improvements and these street lighting improvements are for the most part, lighting improvements that exceed what would otherwise be required for traffic circulation or to ensure the safety and protection of the general public and property in general.
Because these District lighting improvements are directly associated with the development or anticipated development of the properties within each respective District Zone and clearly provide a special benefit to those properties that is not shared by all properties in the City, it is certainly reasonable to conclude that the maintenance and operation of these improvements is largely, if not entirely, a special benefit to those properties to be assessed. Based on the special benefits previously identified for street lights, it is apparent that within residential developments (Zone B, which is comprised initially as Sub-Zones B1, B2, and B3), the internal residential development street lights are installed solely for the use and benefit of those residential properties and there is no quantifiable general benefit to other properties or to the public at large.
In addition to the internal residential street lights within the various developments in Zone B, the properties in Zone B (both the residential parcels and the school site) are accessed from and/or are adjacent to Obispo Street and/or Flower Avenue and Buena Vista Road and the street lights on these secondary/collector streets are collectively and proportionately shared by the properties in Zone B as well as the non-residential properties in Zone A which are adjacent to these streets and associated street lights. Collectively, these secondary/collector street lights represent approximately fifteen percent (15%) of the total street lights to be installed within the District. While these secondary/collector lights are clearly the result of the development of properties within the District, it is also reasonable to conclude that these types of streets are often accessed by the general public (possibly in route to the school or parks) and to some extent the street lighting on these streets may also enhance general nighttime traffic safety and circulation for other properties and the public at large. Based on various traffic circulation studies and related data, it is estimated that less than forty percent (40%) of these secondary/collector street lights would be required for similar streets in less concentrated development areas. Therefore, it has been determined that the general benefit related to the overall operation and maintenance of these shared street lights is no more than six percent (6%) of the street light operating costs for these particular street lights.
However, to ensure that no parcel is assessed for more than its proportional special benefit for these shared street lights, the City will contribute for general benefit an amount equal to ten percent (10%) of the budgeted regular annual maintenance expenditures (maintenance and Pasadera Landscaping and Lighting District
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Fiscal Year 2024/2025
energy costs). These general benefit costs shall be excluded from the special benefit assessment funding and not assessed to the parcels within the District.
In addition to the internal residential street lights and secondary/collector street lights discussed above, the non-residential properties within Zone A will directly benefit from the street lights to be installed on Main Street (a primary/arterial street) adjacent to those properties. Similar to the lights on secondary/collector streets, it is certainly reasonable to recognize that the street lights on this primary/arterial street provides a measure of general benefit to the public and to properties in general resulting from nighttime traffic safety and circulation. The American National Standard Practice for Roadway Lighting and various related traffic and street lighting studies suggest that over ninety percent (90%) of the street lights installed on primary/arterial streets in urban areas are directly the result of property development (both residential and non-residential development).
In turn these developments increase traffic circulation and ultimately dictate the type of lighting, spacing and number of lights required and without such development, both the need and quantity of those lights would be dramatically reduced, which is reflected by the limited lighting that currently exists in this area on Main Street. Therefore, like the secondary/collector street lights associated with this District, it has been determined that the general benefit related to the operation and maintenance of the street lights on Main Street is ten percent (10%) of the regular annual maintenance expenditures (maintenance and energy costs). These general benefit costs shall be excluded from the special benefit assessment funding and not assessed to the parcels within Zone A of the District.
Utilizing the general benefit service costs outlined above and the improvements proposed at buildout, the following table summarizes the estimated general benefit costs calculated for each Zone and Sub-Zone within District:
Estimated General Benefit for Street Lighting, Landscaping, and Parks (1) As with most maintenance costs, the General Benefit Costs shown above have been adjusted for inflation and in subsequent fiscal years the General Benefit Cost will likely continue to be impacted and adjusted for inflation.
Zone A ($24) $0 ($24)
Sub-Zone B1 ($972) ($5,696) ($6,668)
Sub-Zone B2 ($7) ($28) ($35)
Sub-Zone B3 ($14) ($70) ($84)
Zone B Zone B Total ($992) ($5,795) ($6,786)
Total General Benefit ($1,015) ($5,795) ($6,810)
Zone Street Lighting
Landscaping
and Parks Total (1)
General Benefit General Benefit General Benefit
Sub-Zone
Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2024/2025
Assessment Methodology
To calculate and identify the proportional special benefit received by each parcel and ultimately each parcel’s proportionate share of the improvement costs it is necessary to consider not only the improvements and services to be provided, but the relationship each parcel has to those improvements as compared to other parcels in the District.
Article XIII D Section 4a reads in part:
“…The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement or the maintenance and operation expenses of a public improvement or for the cost of the property related service being provided. No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.” Landscaping and lighting improvements like most public improvements, provide varying degrees of benefit (whether they be general or special) based largely on the extent of such improvements, and the location of the improvements in relationship to properties associated with those improvements. To establish the proportional special benefit and ultimately the assessment obligation for each parcel, these factors need to be addressed and formulated in the method of apportionment by the use of benefit zones that reflect the extent and location of the improvements in relationship to the properties, as well as the specific use of the property and characteristics that reflects each parcel’s proportional special benefit as compared to other properties that benefit from those same improvements.
The method of apportionment (method of assessment) developed for this District is based on the premise that each property to be assessed receives a particular and distinct benefit (special benefit) from the improvements, services and facilities to be financed by the District assessments and to assess benefits equitably it is necessary to calculate each property’s relative share of the special benefits conferred by the funded improvements and service. The Equivalent Benefit Unit (EBU) method of assessment apportionment is utilized in this District and establishes a basic unit of benefit (base value) and then calculates the benefit derived by each assessed parcel as a multiple (or a fraction) of that basic unit. This EBU method of apportioning special benefits is typically seen as the most appropriate and equitable assessment methodology for districts formed under the 1972 Act, as the benefit to each parcel from the improvements are apportioned as a function of comparable property characteristics The base value and assessment formula utilized in each Zone may be different, but is established for each Zone to reflect the improvements and properties that benefit from those improvements utilizing property characteristics that may include but is not limited to the type of development (property land use), property’s development status, and size of the property (acreage or units).
For the purposes of this Engineer’s Report, an EBU is the quantum of benefit derived from the various Zone improvements by a single family residential parcel. The single family residential parcel has been selected as the basic value for calculation of assessments since at build-out this land use will represent over ninety-eight percent (98%) of the parcels in the District and over seventy percent (70%) of the total acreage developed. Thus, the “benchmark” property (the single family residential parcel) derives one (1) EBU of benefit and is assigned 1.00 Equivalent Benefit Unit.
The following outlines the land use classifications that are associated with or may be associated with the parcels in the District and the proportional Equivalent Benefit Units established for those land use classifications.
Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2024/2025
Land Use Classifications
Single-Family Residential – This land use classification is defined as a fully subdivided residential home site with or without a structure. This land use may include, but is not limited to subdivided residential tract lots, condominiums, or other individual residential units or subdivided lots assigned an Assessor’s Parcel Number. As previously noted, the single family residential parcel has been selected as the basic value for calculation of assessments and each is assigned
1.00 Equivalent Benefit Unit.
Multi-Family Residential – This land use classification is defined as properties that are primarily used for residential purposes, but contain more than a single residential unit on the parcel (parcels with more than one dwelling) including apartments, duplexes, or other multi-unit structures. Due in part to the development and population densities associated with these types of dwelling units (reduced unit size compared to the typical density and size of single-family properties), studies have consistently shown that the average apartment unit impacts infrastructure approximately eighty percent (80%) as much as a single-family residence. (Sources: Institute of Transportation Engineers Informational Report Trip Generation, Fifth Edition, 1991; Metcalf and Eddy, Wastewater Engineering Treatment, Disposal, Reuse, Third Edition, 1991.) Therefore, it is reasonable to conclude that the proportional special benefit these properties receive from the public improvements funded by the District assessments has a similar proportionality and these parcels shall be assigned a weighted proportional special benefit of 0.80 EBU per unit.
Developed Non-Residential – This land use is defined as a parcel and/or development (group of parcels) that has been developed primarily with a non-residential use including, but not limited to (both publicly owned and privately owned) commercial retail or service, office or professional service, hotel or motel, manufacturing, warehousing, parking lot, and/or institutional facilities including hospitals or other medical facilities, private schools or education centers, churches or other non-profit organizations. Based on the planned residential development within this District, it has been determined that these planned single-family residential developments will yield approximately five (5) dwelling units per acre of land. The actual residential development density is 5.43 units per acre. Therefore, since the single family residential parcel (the base value for calculation of assessments) is assigned 1.0 Equivalent Benefit Unit it is reasonable and appropriate to assign the developed non-residential properties a weighted special benefit that reflects a similar and proportional development density. Therefore, the EBU assigned to each developed non-residential property is established by multiplying the parcel’s applied acreage by
5.0 EBU per acre (e.g., a developed non-residential parcel of 4.25 acres would be assigned 21.25 EBU, 4.25 acres x 5.0 EBU/acre = 21.25 EBU).
Public School Property – This classification includes the parcel currently identified specifically as a public school site. On average, approximately 1/3rd (33.33%) of the total school site acreage is developed with structures and parking facilities, which is similar to what is commonly associated with non-residential developments. The remaining parcel acreage (approximately 66.67%) is generally playground areas and/or sports fields which is similar to the District’s park improvements. Recognizing the overall development of this parcel as compared to other properties in the District and the improvements in proximity to this property, it has been determined that the proportional special benefit EBU calculated for this parcel is accurately reflected by treating that portion of the parcel with structures and parking facilities (1/3rd of the parcel’s acreage) similar to the EBU calculated for Developed Non-Residential properties (33.33% of acreage x 5.0 EBU/acre), with the remaining 2/3rd of the parcel’s acreage being excluded (treated similar to the District’s park facility, although this area is not part of the improvements being maintained by the District). Therefore, this 14.37 acre school site parcel shall be assigned 11.98 EBU for balloting purposes to establish the property’s maximum assessment Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2024/2025
and proportional special benefit ([14.37 acres x 33.33% = 4.79 applied acre]; x 5.00 EBU/acre =
11.98 EBU).
However, for calculation of the annual assessments each fiscal year, the Assessment Engineer shall apply to this parcel an EBU that best reflects the property’s development status and proportional special benefit from the exiting improvements and/or new improvements to be installed and accepted during the fiscal year. The Assessment Engineer may treat the parcel as a Vacant Undeveloped Property (assigned 1.00 EBU per acre or 4.79 EBU) or any proportional EBU up to the parcel’s maximum EBU described above (11.98 EBU).
Based on the current development of this property and the location and timing of the improvements to be accepted by the City for maintenance, this parcel shall be assigned a weighted special benefit per applied acre applicable to Vacant Undeveloped Property.
Planned Residential Development – This land use classification is defined as a parcel or group of parcels that may currently be identified as vacant undeveloped property or undeveloped residential property, zoned for residential use, and the number of residential units to be developed on the property has been determined or identified as part of a Tentative Development Plan, Tentative Tract Map or Specific Plan.
For balloting purposes to establish each property’s maximum assessment and proportional special benefit, these parcels were assigned an EBU that reflected the total EBU’s planned for that parcel at build-out (1.00 EBU per single-family residential lot and 0.80 per multi-family residential unit).
However, for calculation of the annual assessments each fiscal year, the Assessment Engineer shall apply to such parcels an EBU that best reflects that parcel’s proportional special benefit from the improvements and services provided as compared to other properties in the District, Zone and Sub-Zone based on the type and location of the improvements to be maintained, the proximity of the property to those improvements, and the development status of the property. Because these factors can vary from year to year and from parcel to parcel, the calculated EBU for each parcel originally balloted as a Planned Residential Development parcel may be different utilizing either the acreage of the parcel or number of planned units. The Assessment Engineer may identify the parcel and treat the parcel as a Vacant Undeveloped Property (assigned 1.00 EBU per applied acre up to a maximum of 5.0 EBU); as an Undeveloped Residential Property (assigned 1.00 EBU per acre for the parcel’s total acreage); or may temporarily identify the parcels as a Special Case Parcel (refer to this land use classification below) assigning the parcel any proportional EBU up to the maximum EBU for which the property was ballot (1.0 EBU per singlefamily residential lot and 0.80 per multi-family residential unit).
Based on the development of properties within the District (specifically in Zone B) and the location and timing of the improvements to be accepted by the City for maintenance, the parcels initially identified as Planned Residential Development properties have each be assigned a weighted special benefit per acre applicable to either Vacant Undeveloped Property or Undeveloped Residential Property.
Planned Non-Residential Development – This land use classification is defined as a parcel or group of parcels that may currently be identified as vacant undeveloped property or undeveloped non-residential property, zoned for a non-residential use including proposed commercial retail or service, office or professional service, hotel or motel, manufacturing, warehousing, parking lot, and/or institutional facilities including hospitals or other medical facilities, private schools or education centers, churches or other non-profit organizations based on a Tentative Development Plan, Tentative Tract Map or Specific Plan.
Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2024/2025
For balloting purposes to establish each property’s maximum assessment and proportional special benefit, these parcels were assigned an EBU that reflected the total EBU’s planned for that parcel at build-out (5.00 EBU per applied acre as applicable to Developed Non-Residential properties).
However, for calculation of the annual assessments each fiscal year, the Assessment Engineer shall apply to such parcels an EBU that best reflects that parcel’s proportional special benefit from the improvements and services provided as compared to other properties in the District and Zone based on the type and location of the improvements to be maintained, the proximity of the property to those improvements, and the development status of the property. Because these factors can vary from year to year and from parcel to parcel, the calculated EBU for each parcel originally balloted as Planned Non-Residential Development may be different. The Assessment Engineer may identify the parcel and treat the parcel as a Vacant Undeveloped Property (assigned 1.00 EBU per applied acre up to a maximum of 5.0 EBU); as an Undeveloped Non-Residential Property (assigned 1.00 EBU per acre for the parcel’s total acreage); or may temporarily identify the parcel as a Special Case Parcel (refer to this land use classification below) assigning the parcel any proportional EBU up to the maximum EBU for which the property was ballot (5.00 EBU per applied acre as applicable to Developed Non-Residential properties).
Based on the anticipated development of properties within the District (specifically in Zone A) and the location and timing of the improvements to be accepted by the City for maintenance, the parcels initially identified as Planned Non-Residential Development properties have each been assigned a weighted special benefit per acre applicable to either Vacant Undeveloped Property or Undeveloped Non-Residential Property.
Vacant Undeveloped Property – This land use classification includes undeveloped properties that are identified as parcels with no development including residential and non-residential properties, undeveloped school sites, and parcels that may currently be used for agricultural purposes. Although it is recognized that most of the improvements within the various Zones and Sub-Zones of the District will be constructed and accepted for maintenance in large part as properties are developed and these developments will clearly receive a particular and distinct benefit (direct special benefit) from those improvements, it is also recognized that most of the various improvements proposed within the District are considered shared improvements that collectively support the overall development of properties within the District and Zones to their full and best use, including the vacant undeveloped properties. However, it is also recognized that the planned parks, internal (neighborhood) street lights and some of the non-streetscape improvements within the District are in large part specifically related to the residential parcels that have an immediate utilization of these improvements and the special benefit costs associated with the parks, neighborhood street lights and landscape areas should be assessed primarily if not entirely to the properties which are developed or actively being developed. Likewise, most of the remaining landscaping and lighting improvements within the District will likely be installed and accepted for maintenance as properties are developed and those developing parcels clearly receive a proportionately greater benefit from those improvements than do the undeveloped properties. Therefore, it has been determined that parcels identified as Vacant Undeveloped Property shall be assigned a proportional EBU that is twenty percent (20%) of that assigned to developed properties, which is 1.0 EBU per applied acre (20% of the 5.0 EBU per acre assigned to Developed Non-Residential properties), up to a maximum of five (5.0) acres per parcel or 5.0 EBU per parcel. (e.g., a Vacant Undeveloped Property which is 7.00-acres would be assigned
5.00 EBU [5.0-acre maximum x 1.0 EBU/acre]).
Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2024/2025
Undeveloped Residential Property – This land use classification includes undeveloped properties that were originally identified as Planned Residential Development parcels, but have not yet been developed or subdivided, but are either adjacent to or in close proximity to improvements that will be maintained for the current fiscal year, and/or the property is actively being developed. While many of the improvements within the District will be constructed and accepted for maintenance in large part as properties are being subdivided or developed and those properties will clearly receive a particular and distinct benefit (direct special benefits) from those improvements, it is also recognized that certain improvements within the District are installed in advance of property development that are considered shared improvements that collectively support the overall development of properties within the District and Zones to their full and best use, including the vacant undeveloped properties. However, it is also recognized that some of these shared improvements within the District have a more direct and particular benefit to those undeveloped properties directly adjacent to the improvements or in close proximity to those improvements than do the vacant undeveloped properties that are not actively being developed or are further from those shared improvements. Therefore, it has been determined that parcels identified as Undeveloped Residential Property shall be assigned a proportional EBU that is twenty percent (20%) of that assigned to developed properties, which is 1.0 EBU per applied acre (20% of the 5.0 EBU per acre assigned to Developed Non-Residential property), but unlike parcels designated as Vacant Undeveloped Property, there is no acreage cap for the parcel (e.g., an Undeveloped Residential Property which is 7.00-acres would be assigned 7.00 EBU [7.0 acres x 1.0 EBU/acre]).
Undeveloped Non-Residential Property – This land use classification includes undeveloped properties that were originally identified as Planned Non-Residential Development parcels, but have not yet been developed or subdivided, but are either adjacent to or in close proximity to improvements that will be maintained for the current fiscal year, and/or the property is actively being developed. While many of the improvements within the District will generally be constructed and accepted for maintenance in large part as properties are being subdivided or developed and those properties will clearly receive a particular and distinct benefit (direct special benefits) from those improvements, it is also recognized that certain improvements within the District are installed in advance of property development that are considered shared improvements that collectively support the overall development of properties within the District and Zones to their full and best use, including the vacant undeveloped properties. However, it is also recognized that some of these shared improvements within the District have a more direct and particular benefit to those undeveloped properties directly adjacent to the improvements or in close proximity to those improvements than do the vacant undeveloped properties that are not actively being developed or are further from those shared improvements. Therefore, it has been determined that parcels identified as Undeveloped Non-Residential Property shall be assigned a proportional EBU that is twenty percent (20%) of that assigned to developed properties, which is 1.0 EBU per applied acre (20% of the 5.0 EBU per acre assigned to Developed Non-Residential property), but unlike parcels designated as Vacant Undeveloped Property, there is no acreage cap for the parcel (e.g., an Undeveloped Non-Residential Property which is 7.00-acres would be assigned 7.00 EBU [7.0 acres x 1.0 EBU/acre]).
Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2024/2025
Special Case Parcels – In many landscaping and lighting districts (particularly districts that have a wide range of land uses, phased developments, and/or diversity in the location and type of improvements) there may be one or more parcels to be assessed that the standard land use classifications and proportionalities, previously defined, do not accurately identify the use and special benefit received from the improvements. Properties that are typically classified as Special Case Parcels usually involve partial or mixed use development of the property or development restrictions whether those restrictions are temporary or permanent and affect the properties proportional special benefit. Examples of such restrictions may include situations where only a portion of the parcel’s total acreage is or can be developed. In such a case, the net acreage of the parcel that is utilized rather than the gross acreage of the parcel may be applied to calculate the parcel’s proportional special benefit similar to how the Public School site parcel is treated.
Each such parcel shall be addressed on a case-by-case basis by the Assessment Engineer and the EBU assigned to such parcels shall be based on the specific issues related to that parcel and its proportional special benefit compared to other properties that receive special benefits from the improvements.
Exempt Properties – Within most districts, there are lots or parcels of land that do not receive a special benefit from the improvements provided (exempt from assessment), which may include, but is not limited to public streets and other roadways (typically not assigned an APN by the County); dedicated public easements, public rights-of-way, or utility rights-of-way; common areas, bifurcated lots; sliver parcels or any other parcel that has little or no assessed value and cannot be developed independently; parcels that are part of the improvements being maintained by the District or that the City has determined that the parcel cannot be developed. These types of parcels are considered to receive no special benefit from the improvements and are therefore exempted from assessment and are assigned 0.00 EBU.
A summary of the applied Equivalent Benefit Units (EBUs) for the various land use classifications within the District is shown in the following table:
Assessment Land Use
Single Family Residential 1.00 EBU per Unit/Parcel
Multi-Family Residential 0.80 EBU per Unit
Developed Non-Residential 5.00 EBU per Acre
Public School Property 5.00 EBU per Adjusted Acreage
Planned Residential Development 0.50 EBU per Unit
Planned Non-Residential Development 2.50 EBU per Acre
Vacant Undeveloped Property 1.00 EBU per Acre (Maximum of 5 Acres) Approved Residential Development 1.00 EBU per Unit
Approved Non-Residential 5.00 EBU per Acre
Approved Multi-Residential 0.80 EBU per Unit
Approved Condominium Property 1.00 EBU per Unit
Undeveloped Residential Property 1.00 EBU per Acre
Undeveloped Non-Residential 1.00 EBU per Acre
Planned Multi-Family Residential 0.80 EBU per Unit
Exempt - EBU per Acre
Special Case 1.00 EBU per Acre
Equivalent Benefit Unit Formula
Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2024/2025
Equivalent Benefit Unit Summary
The following is a summary of the Equivalent Benefit Units applicable to the various land use classifications identified in each District Zone or Sub-Zone:
Zone A
Sub-Zone B1
Sub-Zone B2
Sub-Zone B3
Assessment Land Use
Total
Parcels
Residential
Units/Lots
Applied
Acreage
Equivalent Benefit
Units (EBU)
Vacant Undeveloped Property 1 - 4.64 4.64
Undeveloped Non-Residential 2 - 16.85 16.85
Exempt 1 - 1.77 -
Totals 4 - 23.26 21.49
Assessment Land Use
Total
Parcels
Residential
Units/Lots
Applied
Acreage
Equivalent Benefit
Units (EBU)
Single Family Residential 444 444 - 444.00
Exempt 23 - 4.96 -
Totals 467 444 4.96 444.00
Assessment Land Use
Total
Parcels
Residential
Units/Lots
Applied
Acreage
Equivalent Benefit
Units (EBU)
Vacant Undeveloped Property 1 - 4.79 4.79
Exempt 2 - 12.91 -
Totals 3 - 17.70 4.79
Assessment Land Use
Total
Parcels
Residential
Units/Lots
Applied
Acreage
Equivalent Benefit
Units (EBU)
Vacant Undeveloped Property 4 - 20.00 20.00
Exempt 2 - 9.58 -
Totals 6 - 29.58 20.00
Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2024/2025
Part III – Estimate of Costs
Calculation of Assessments
An assessment amount per Equivalent Benefit Unit (Assessment per EBU) is calculated by:
Taking the “Total Annual Expenses” (Total budgeted costs) and subtracting the “Total General Benefit Expenses” (Landscaping General Benefit Expenses and/or Lighting General Benefit Expenses), to establish the “Total Special Benefit Expenses;” Total Annual Expenses – General Benefit Expenses = Special Benefit Expenses To the resulting “Special Benefit Expenses,” various “Funding Adjustments” may be applied that may include, but are not limited to:
➢ “Reserve Fund Transfer/Deduction,” represents an amount of available existing funds from the “Operational Reserve Fund Balances” being applied to pay a portion of the Special Benefit Expenses for the fiscal year.
➢ “Additional City Funding,” represents an adjustment that is typically used to address any funding gap between the amount budgeted to provide the improvements and services (“Special Benefit Expenses”); and the amount that will be collected through the assessments.
This funding may be addressed by an additional City contribution or loan from the City which is intended to be recovered in future fiscal years.
These adjustments to the Special Benefit Expenses result in the net special benefit amount to be assessed “Balance to Levy;”
Special Benefit Expenses - Funding Adjustments = Balance to Levy The amount identified as the “Balance to Levy” is divided by the total number of EBUs of parcels that receive special benefit to establish the Assessment Rate (“Assessment Per EBU”). This Assessment Rate is then applied back to each parcel’s individual EBU to calculate the parcel’s proportionate special benefit and assessment amount for the improvements.
Balance to Levy / Total EBU = Assessment Per EBU (Assessment Rate) Assessment Per EBU x Parcel EBU = Parcel Assessment Amount Note: The maximum assessments and proposed assessments for fiscal year 2024/2025 outlined in this Report are intended to fully support the expenses identified as “Special Benefit Expenses.” Consequently, there are no “Funding Adjustments” reflected in the budgets, the “Balance to Levy” is equal to the total “Special Benefit Expenses.”
Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2024/2025
Zone Budgets and Assessments
The Zone budgets and assessments outlined on the following page for the District are based on the City’s estimate of the expenses and related funding necessary for the operation, maintenance and servicing of the District improvements identified in Part I of this Report for Zone A and Zone B for fiscal year 2024/2025.
The Maximum Assessment per EBU (Maximum Assessment Rates) for Zone A and Zone B (SubZones B1, B2, and B3) represents the calculated authorized maximum assessment rates for fiscal year 2024/2025 based on the assessment rates presented to the property owners of record within the District as part of the Ballot Proceeding in fiscal year 2017/2018, adjusted by the authorized Assessment Range Formula of 3.5% per year. Reference is hereby made to the Assessment Range Formula described after the budget.
Refer to the Assessment Roll outlined in “Part IV — Assessment Roll” to reference the individual assessment amounts proposed to be levied and collected for each parcel in fiscal year 2024/2025.
A listing of the parcels to be assessed within this District along with the assessment amounts has been filed with the City Clerk in an electronic format and is by reference made part of this Report.
Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2024/2025
Zone Budgets & Assessments, Fiscal Year 2024/2025
Zone A Zone B Zone B Zone B TOTAL BUDGET
Sub-Zone B1 Sub-Zone B2 Sub-Zone B3 Assessment
Fiscal Year
2024/2025
ANNUAL OPERATION & MAINTENANCE EXPENSES
Annual Lighting Operation & Maintenance Expenses $ 236 $ 24,561 $ 67 $ 136 $ 25,000 Annual Landscaping Operation & Maintenance Expenses - 88,432 470 1,098 90,000 TOTAL ANNUAL OPERATION & MAINTENANCE EXPENSES $ 236 $ 112,993 $ 536 $ 1,234 $ 115,000
REHABILITATION/RENOVATION FUNDING & CAPITAL EXPENDITURES Lighting Rehabilitation/Renovation Funding $ - $ - $ - $ - $ - Landscape Improvement Rehabilitation/Renovation Funding - - - - - Planned Capital Expenditures (For Fiscal Year) $ - $ - $ - $ - $ - TOTAL REHABILITATION/RENOVATION FUNDING & CAPITAL EXPENDITURES $ - $ - $ - $ - $ -
INCIDENTAL EXPENSES
Operational Reserves (Collection) $ - $ - $ - $ - $ -
District Administration Expenses $ 51 $ 25,650 $ 121 $ 277 $ 26,100 County Administration Fee 2 955 5 10 972
Annual Administration Expenses 53 26,605 126 288 27,072 TOTAL INCIDENTAL EXPENSES $ 53 $ 26,605 $ 126 $ 288 $ 27,072 TOTAL ANNUAL EXPENSES $ 290 $ 139,599 $ 662 $ 1,522 $ 142,072
GENERAL BENEFIT EXPENSES
Lighting General Benefit — City Funded $ (24) $ (972) $ (7) $ (14) $ (1,015) Landscaping General Benefit — City Funded - (5,696) (28) (70) (5,795) TOTAL GENERAL BENEFIT EXPENSES $ (24) $ (6,668) $ (35) $ (84) $ (6,810) TOTAL SPECIAL BENEFIT EXPENSES $ 266 $ 132,931 $ 627 $ 1,438 $ 135,262
FUNDING ADJUSTMENTS
Reserve Fund Transfer/Deduction $ - $ - $ - $ - $ -
Additional City Funding - - - - -
TOTAL FUNDING ADJUSTMENTS / CONTRIBUTIONS $ - $ - $ - $ - $ - BALANCE TO LEVY $ 266 $ 132,931 $ 627 $ 1,438 $ 135,262
DISTRICT STATISTICS
Total Parcels 4 467 3 6 480
Assessed Parcels 3 444 1 4 452
Equivalent Benefit Units (EBU) 21.49 444.00 4.79 20.00 490.28 Assessment Per EBU $12.38 $299.40 $130.94 $71.90
Maximum Assessment Rate Per EBU $49.62 $757.01 $757.01 $757.01
FUND BALANCE
Estimated Beginning Fund Balance $ 1,254 $ 281,142 $ 7,937 $ 1,433 $ 291,767 Operational Reserve & Rehabilitation Funding Collected - - - - - Estimated Ending Fund Balance $ 1,254 $ 281,142 $ 7,937 $ 1,433 $ 291,767
BUDGET ITEMS
Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2024/2025
Assessment Range Formula
Any new or increased assessment requires certain noticing and meeting requirements by law.
The Brown Act defines the terms “new or increased assessment” to exclude certain conditions.
These certain conditions included “any assessment that does not exceed an assessment formula or range of assessments previously adopted by the agency or approved by the voters in the area where the assessment is imposed.”
Recognizing that the cost of maintaining the improvements will increase over time due to inflation, the maximum assessments (initial maximum assessment amounts and maximum assessment rates established in fiscal year 2017/2018) for Zone A and Zone B, include a fixed 3.5% annual inflationary adjustment (Assessment Range Formula). This 3.5% annual adjustment provides for reasonable increases and inflationary adjustment to the initial maximum assessment rates approved by the property owners as part of the protest ballot proceeding conducted in connection with the formation of the District.
The adoption of the maximum assessment rates and the Assessment Range Formula described herein does not mean that the annual assessments will necessarily increase each fiscal year, nor does it absolutely restrict the assessments to the adjustment maximum assessment amount.
Although the maximum assessment rates that may be levied shall be adjusted (inflated) by 3.5% each year, the actual amount to be assessed will be based on the Balance to Levy for that fiscal year. If the calculated assessment is less than the adjusted maximum assessment, then the calculated assessment may be approved by the City Council for collection. If the calculated assessment (based on the proposed budget) is greater than the adjusted maximum assessment for that fiscal year, then the assessment would be considered an increased assessment and would require property owner approval through a protest ballot proceeding before imposing such an increase. Otherwise, it would be necessary to reduce the budget or provide a contribution from the City to reduce the Balance to Levy (amount to be assessed) to an amount that can be supported by an assessment rate less than or equal to the maximum assessment rate authorized for that fiscal year.
The Assessment Range Formula (3.5% annual adjustment) shall be applied to the maximum assessment rates for Zone A and Zone B identified in the District Budgets Establishing Maximum Assessments as presented in this Report, commencing in fiscal year 2018/2019 and all subsequent fiscal years unless the City Council formally suspends its application.
Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2024/2025
Part IV — Assessment Roll
Due to the number of parcels in the District, the Assessment Roll for fiscal year 2024/2025 (a listing of the parcels to be assessed within this District along with the assessment amounts) has been filed with the City Clerk in an electronic format and is by reference made part of this Report.
The proposed Assessment Roll shall be available for public inspection in the City Clerk’s Office during normal office hours.
The Assessment Roll reflects all properties currently identified within the District and their assessment amount(s) for fiscal year 2024/2025. Each parcel listed on the Assessment Roll is currently shown and illustrated on the County Assessor’s Roll and the County Assessor’s Parcel Number Maps (APN maps). These records are by reference made part of this Report and shall govern for all details concerning the description of the lots or parcels. All assessments presented on the assessment roll are subject to change as a result of parcel changes made by the County including parcel splits, parcel merges or development changes that occur prior to the County Assessor's Office securing the final roll and generating tax bills for fiscal year 2024/2025.
Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2024/2025
Part V — District Diagrams
The lots and parcels of land within the Pasadera Landscaping and Lighting District consist of the lots and parcels within the planned non-residential and residential development areas identified in the DJ Farms Specific Plan and commonly referred to as the Pasadera development located on the south side of Main Street near Obispo Street and Flower Avenue.
The District Diagrams provided on the following pages provide a visual depiction of the boundaries of the District and the Zones and Sub-Zones applicable for fiscal year 2024/2025. These diagrams also provide a visual depiction of the location and extent of the improvements to be maintained within the District at build-out. The combination of these Diagrams and the Assessment Roll contained in Part IV of this Report constitutes the Assessment Diagram for this District and encompasses all lots, parcels and subdivisions of land that receive or will receive a special benefit from the improvements to be provided in the District at the time this Report was prepared.
The lines and dimensions of each lot, parcel, and subdivision of land contained in these diagrams are inclusive of the parcels listed in “Part IV — Assessment Roll” of this Report as they existed at the time this Report was prepared and shall include all subsequent subdivisions, lot-line adjustments, or parcel changes therein.
Reference is hereby made to the Santa Barbara County Assessor’s Parcel Maps for a detailed description of the lines and dimensions of each parcel within the Pasadera Landscaping and Lighting District including all subsequent subdivisions, lot-line adjustments, or parcel changes therein.
Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2024/2025
District Diagram – Boundary and Zones, Fiscal Year 2024/2025 Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2024/2025
District Diagram – Development and Improvements Planned at Buildout Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2024/2025
District Diagram – Development and Improvements, Fiscal Year 2024/2025
RESOLUTION NO. 2024-51
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GUADALUPE, COUNTY OF SANTA BARBARA, STATE OF CALIFORNIA, CONFIRMING THE ENGINEER’S REPORT, THE ASSESSMENT DIAGRAM, AND
ASSESSMENTS RELATED THERETO FOR THE PASADERA LANDSCAPING AND LIGHTING DISTRICT,
OVERRULING ALL PROTESTS CONCERNING THE ASSESSMENTS, AND APPROVING THE LEVY AND COLLECTION OF ASSESSMENTS FOR FISCAL YEAR 2024/2025
The City Council of the City of Guadalupe, California does resolve as follows:
WHEREAS, pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code (hereafter referred to as the “1972 Act”), the City Council, did by previous resolution order the Engineer, Willdan Financial Services, to prepare and file a report in accordance with Article 4 of Chapter 1 of the 1972 Act, in connection with the proposed annual levy and collection of special benefit assessments for the Pasadera Landscaping and Lighting District (hereafter referred to as the “District”) for the fiscal year commencing July 1, 2024, and ending June 30, 2025; and, WHEREAS, the Engineer has prepared and filed with the City Clerk of the City of Guadalupe, and the City Clerk has presented to the City Council such report entitled “City of Guadalupe, Engineer’s Report, Pasadera Landscaping and Lighting District, Engineer’s Annual Report, Fiscal Year 2024/2025” (hereafter referred to as the “Report”); and,
WHEREAS, after fully considering the Report presented, the City Council, by resolution at its July 9, 2024, Council Meeting, preliminarily approved said Report and declared its intention to levy and collect the fiscal year 2024/2025 assessments (annual assessments) for the District as set forth in the Report, and set the public hearing to be noticed pursuant to applicable law for July 23, 2024, at 6:00 p.m.; and, WHEREAS, on July 23, 2024, the City Council held the duly noticed public hearing to consider all oral statements and written protests, objections, and communication made or filed by any interested person regarding the District and the proposed levy of special benefit assessments for the fiscal year commencing July 1, 2024.
NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL OF THE CITY
OF GUADALUPE, CALIFORNIA FOR THE PASADERA LANDSCAPING AND LIGHTING DISTRICT, PURSUANT TO CHAPTER 4, ARTICLE 1 AND ARTICLE 2 OF THE 1972 ACT, AS FOLLOWS:
SECTION 1. That the foregoing recitals are true and correct.
SECTION 2. Following notice duly given, the City Council has held a full and fair public hearing regarding the levy and collection of the proposed assessment within the District for fiscal year 2024/2025 to pay for the costs and expenses of the improvements described in Section 4 below and the Engineer's Report prepared in connection therewith. All interested persons were afforded the opportunity to hear and be heard. The City Council has considered all oral and written statements, protests, and communications made or filed by interested persons.
ATTACHMENT 2
SECTION 3. Based upon its review of the Engineer's Report and other documents, and information presented at the public hearing, the City Council hereby finds and determines that (i) the land within the District will be benefited by the improvements described in the Engineer's Report; (ii) the District includes all of the lands so benefited; (iii) the net amount to be assessed upon the lands within the District for the 2024/2025 fiscal year, in accordance with the Engineer's Report, is apportioned by a formula and method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lots and parcels from the improvements; (iv) only special benefits are assessed and no assessment is imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel; and (v) the District and Zone assessment rates for fiscal year 2024/2025 are less than or equal to the allowable adjusted maximum assessment rates per Equivalent Benefit Unit approved by the property owners of record at the time the District was established pursuant to the California Constitution Article XIIID. These adjusted maximum assessment rates are based on an assessment range formula that includes an annual inflationary adjustment of (3.5%) to the previous fiscal year’s maximum assessment rates. This inflation adjustment is applied to the maximum assessment rates each fiscal year, whether the annual assessments levied are increased or not.
SECTION 4. The City Council hereby orders the proposed improvements to be made, which improvements may include any improvements, expenses, and services authorized pursuant to the 1972 Act, including, but not limited to, the maintenance, operation, and servicing of local street lighting, parks, and various landscaping improvements established in connection with the development of the properties within the District, and which shall be maintained for the special benefit of those properties. The maintenance and servicing of the improvements generally include, but are not limited to, the materials, equipment, utilities, labor, and incidental expenses, including administrative expenses, required for annual operation, as well as the performance of periodic repairs and replacement activities as needed to provide for the growth, health, and beauty of the parks and landscaping within specified public areas, rights-of-way and/or dedicated easements, the proper operation and functioning of related amenities including, irrigation and drainage systems, specified fencing, hardscapes; sports courts and fields; playground equipment and structures; sidewalks, ornamental or safety lighting; benches, trash receptacles; drinking fountains, picnic facilities and any other equipment, structures or facilities related to the parks and/or landscape areas; and the proper operation of the public street lights and street lighting system within the public rights-of-way which may include, but is not limited to the furnishing of electric current or other illuminating agent; as needed maintenance, repair, and replacement of worn out electrical components and light fixtures, including bulbs, ballasts, photoelectric cells, meters, electrical cables; repair or replacement of damaged poles, ground wires, and conduits caused by accidents, vandalism, time, and weather; and monitoring of the Underground Service Alert (USA) network to prevent damage by excavation. The Engineer’s Report filed with the City Clerk and presented to the City Council more fully describes the improvements proposed for Fiscal Year 2024/2025.
SECTION 5. The City Council hereby confirms the diagram and assessments, with respect to the parcels in the District, as presented in the Engineer's Report or as amended herein by direction of the City Council.
SECTION 6. The City Council hereby confirms that the assessments as described in the Engineer’s Report are in compliance with the provisions of the 1972 Act and Article XIIID of the California Constitution and are levied without regard to property valuation, and such assessments are levied for the purpose of paying the costs and expenses of the improvements described in SECTION 4 above for the fiscal year commencing on July 1, 2024, and ending on June 30, 2025, and the City Council hereby overrules all protests and objections to the levy and collection of the proposed assessment for the fiscal year 2024/2025.
SECTION 7. The adoption of this resolution constitutes the levy of assessments for the fiscal year commencing July 1, 2024, and ending June 30, 2025.
SECTION 8. The City Council hereby orders the District improvements to be made as outlined by the Engineer’s Report and by these proceedings; and,
SECTION 9. Pursuant to applicable law, City staff or their designee is hereby authorized and directed to file as may be required the annual levy of the District assessments for fiscal year 2024/2025 as approved herein with the Santa Barbara County Auditor/Controller along with a certified copy of this resolution; and/or other resolutions and documents as may be required by the County Auditor/Controller, including copies of the Engineer’s Report and/or Assessment Diagram confirmed by this resolution.
SECTION 10. The County Auditor of Santa Barbara County shall enter on the County Assessment Roll opposite each lot or parcel of land the amount of the assessment, and such assessments shall then be collected at the same time and in the same manner as the County taxes are collected. After collection by the County, the net amount of the assessments shall be paid to the City Treasurer.
SECTION 11. The City Treasurer shall deposit all moneys representing assessments collected by the County to the credit of a special fund for the District, and such moneys shall be expended only for the improvements described in SECTION 4 above.
SECTION 12. The City Clerk is hereby authorized to make minor changes herein to address clerical errors so long as substantial conformance to the intent of this document is maintained. In doing so, the City Clerk shall consult with the City Administrator and City Attorney concerning any changes deemed necessary.
SECTION 13. The City Clerk shall certify to the passage and adoption of this resolution, and the minutes of this meeting shall so reflect the City Council’s approval and confirmation of the
Engineer’s Report and Assessment Diagram prepared in connection with the District assessments for fiscal year 2024/2025 so authorized.
PASSED, APPROVED, AND ADOPTED at a regular meeting on the 23rd day of July 2024, by the following vote:
MOTION:
AYES:
NOES:
ABSENT:
ABSTAINED:
I, Amelia M. Villegas, City Clerk of the City of Guadalupe, DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. 2024-51, has been duly signed by the Mayor and attested by the City Clerk, all at a regular meeting of the City Council, held July 23, 2024, and that same was approved and adopted.
ATTEST:
______________________________________ ______________________________ Amelia M. Villegas, City Clerk Ariston Julian, Mayor
APPROVED AS TO FORM:
_______________________________________
Philip F. Sinco, City Attorney
Agenda Item No. 11
REPORT TO THE CITY COUNCIL OF THE CITY OF GUADALUPE
Agenda of July 23, 2024
________________________________ __________________________________ Prepared by: Approved by:
Janice Davis, Finance Director Todd Bodem, City Administrator SUBJECT: Completion and Close-Out of CDBG-Economic Development – Programs (2019): City of Guadalupe Mirco-enterprise Assistance Program.
RECOMMENDATION:
It is recommended that the City Council hold a public hearing seeking community input on the completion and close-out of CDBG-Economic Development – Programs (2019): City of Guadalupe Mircoenterprise Assistance Program and adopt Resolution No. 2024-47 for the approval and acceptance of the completion and closeout reports for the City of Guadalupe’s CDBG Micro-enterprise Assistance Program as required by the Community Development Block Grant close-out process.
BACKGROUND:
On March 16, 2021, The City of Guadalupe was awarded $250,000, to run a Micro-enterprise technical assistance and financial assistance program. These programs were launched August 4th, 2021. The contract period ended June 24, 2024.
This program was originally managed through the efforts of Los Amigos De Guadalupe. During the time of their management of this program three (3) applicants completed the necessary requirement to receive grant funding.
On August 18, 2023, Los Amigos De Guadalupe (LADG) informed the City of Guadalupe that they have made the decision close operations. The responsibility of this program came back to city staff who began the process of closing this grant program out.
In May of 2024, City staff was contacted by the office of the state senator informing of a group of applicants that had completed the program but had not been awarded the grant. City staff did research to locate these individuals and on May 10, 2024, these individuals were contacted via email and phone in order to provide them an opportunity to provide the necessary documentation to have their application reviewed by the Micro-enterprise Advisory Committee (MAC). From these efforts there were two (2) applicants that responded with the proper documentation to have their business reviewed and both applicates were awarded the grant.
Janice Davis
DISCUSSION:
The U.S. Department of Housing and Urban Development’s (HUD) closeout requirements for CDBG grant awards for funds administered by the Department are contained in 24 CFR Part 570. Specifically, 24 CFR 570.489(i) – Closeout of grants to units of general local government – states, “The State shall establish requirements for timely closeout of grants to units of general local government and shall take action to ensure the timely closeout of such grants.”
ACCOMPLISHMENTS:
These are the 5 businesses awarded:
Guadalupe Fitness – Guadalupe’s very first fitness center! Before this gym’s opening, residents would have to drive 9-12 miles to the nearest fitness center.
Ever Shine Cleaning – Housekeeping and janitorial services business that offers quality and professional cleaning of any kind.
Central Gold Coast Unlimited – Guadalupe’s local artist is working towards being able to merchandise her artwork and photography on t-shirts, posters, calendars, etc.
Ninth Street Barbershop – Guadalupe’s local barber hopes to hire barbers to keep up with increasing demand.
Happy Moon – an eco-friendly business selling various products that will help reduce the human race’s carbon footprint.
The total amount of the Micro-enterprise grant 20-CDBG-12089 was $250,000. The City will disencumber $190,692.82 of 20-CDBG-12089 pending approval of the final financial report reimbursement request of $23,738.45. The amount disencumbered is due to the inability of LADG to expend the total amount during the time of their administration and the inability of City staff to be able to continue the program after LADG dissolved September 30, 2023.
FISCAL IMPACT:
While this program has no direct fiscal impact, the small businesses created through this program would help bring income and sales tax revenues to the City of Guadalupe.
ATTACHMENTS:
1. Resolution No. 2024-47
Activity 20-CDGB-12089 Awarded $250,000
New Businesses $ 36,000.00
Existing Businesses $ 10,000.00
General Administration $ 13,307.18
Total $ 59,307.18
Disencumber $ 190,692.82
RESOLUTION NO. 2024-47
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GUADALUPE FOR THE APPROVAL AND ACCEPTANCE OF THE COMPLETION AND CLOSEOUT REPORT OF THE CITY OF GUADALUPE’S
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ECONOMIC DEVELOPMENT - PROGRAMS (2019): CITY OF GUADALUPE MICRO-ENTERPRISE ASSISTANCE PROGRAM /CONTRACT PRIOR
TO THE CLOSEOUT OF THE GRANT AS REQUIRED BY THE CDBG PROGRAM CLOSEOUT PROCESS WHEREAS, On March 16, 2021, the City of Guadalupe was awarded $250,000, to run a Microenterprise technical assistance and financial assistance program. These programs were launched August 4th, 2021.
WHEREAS, Five (5) applicants were awarded the grant:
Guadalupe Fitness – Guadalupe’s very first fitness center! Before this gym’s opening, residents would have to drive 9-12 miles to the nearest fitness center.
Ever Shine Cleaning – Housekeeping and janitorial services business that offers quality and professional cleaning of any kind.
Central Gold Coast Unlimited – Guadalupe’s local artist is working towards being able to merchandise her artwork and photography on t-shirts, posters, calendars, etc.
Ninth Street Barbershop – Guadalupe’s local barber hopes to hire barbers to keep up with increasing demand.
Happy Moon – an eco-friendly business selling various products that will help reduce the human races’ carbon footprint; and
WHEREAS, the total amount of the Micro-enterprise grant 20-CDBG-12089 was $250,000. The City will disencumber $190,692.82 of 20-CDBG-12089 pending approval of the final financial report reimbursement request of $23,738.45; and
WHEREAS, the closeout period begins at the end of the contract period of performance, June 24, 2024, and
WHEREAS, the U.S. Department of Housing and Urban Development’s (HUD) closeout requirements for CDBG grant awards for funds administered by the Department are contained in 24 CFR Part 570. Specifically, 24 CFR 570.489(i) – Closeout of grants to units of general local government – states, “The State shall establish requirements for timely closeout of grants to units of general local government and shall take action to ensure the timely closeout of such grants”; and
WHEREAS, a formal public notice was given July 11, 2024, by posting the notice in five (5) public places in the City and on the City’s website.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Guadalupe as follows:
SECTION 1. The completion and closeout report of The City of Guadalupe’s Community Development Block Grant (CDBG) Economic Development – Programs (2019): City of Guadalupe Mirco-enterprise Assistance Program /contract prior to the closeout of the grant as required by the State of California CDBG program closeout process is hereby approved and adopted.
SECTION 2. The City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the City Clerk shall consult with the City Administrator and City Attorney concerning any changes deemed necessary.
PASSED, APPROVED AND ADOPTED at a regular meeting on the 23rd day of July 2024 by the following vote:
MOTION:
AYES:
NOES:
ABSENT:
ABSTAINED:
I, Amelia M. Villegas, City Clerk of the City of Guadalupe DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. 2024-47, has been duly signed by the Mayor and attested by the City Clerk, all at a regular meeting of the City Council, held July 23, 2024, and that same was approved and adopted.
ATTEST:
______________________________ ____________________________________ Amelia M. Villegas, City Clerk Ariston Julian, Mayor
APPROVED AS TO FORM:
______________________________
Philip F. Sinco, City Attorney
1 Agenda Item No. 12
REPORT TO THE CITY COUNCIL OF THE CITY OF GUADALUPE
Agenda of July 23, 2024
Annis Barajas _________________________________
Prepared by: Annis Barajas Approved by:
Recreation Services Manager Todd Bodem, City Administrator SUBJECT: Request by the Vietnam Veterans of America, Chapter 982, to use the Veteran’s Memorial Plaza parking lot (aka Downtown Parking Lot) for the Veteran’s Memorial Plaza Flagpole Rededication event.
RECOMMENDATION:
Staff recommends the approval of the request by the Vietnam Veterans of America, Chapter 982 (“VVA”), to use of the Veteran’s Memorial Plaza (“Plaza”) for rededication of the flagpole. The VVA is also requesting that the total rental fees of $300 be waived, and staff recommends that the City Council consider this request in accordance with its recently adopted fee waiver policy.
BACKGROUND:
The VVA started maintaining the flagpole at the Plaza in 2008. The flagpole was moved in September 2023 from its previous location on private property to its current location at the Veterans Memorial Plaza parking lot. The VVA requested permission from the City to do so, and the City Council approved this request at its meeting held on March 22, 2022.
Member of the VVA, along with other volunteers, did all the work of moving the flagpole and getting it resettled in its current location. The flagpole is being rededicated on its one year anniversary of being moved to its new location. The flagpole was originally created to remember the lives of the three soldiers that went to war and never came back home to Guadalupe. The flagpole rededication ceremony honors their sacrifice to their country.
DISCUSSION:
On July 11, 2024, the City Recreation and Parks Department received a Special Events facility use rental application requesting the use of the city-owned Veterans Memorial Plaza parking lot (aka Downtown Parking Lot) for the Veteran’s Memorial Plaza Flagpole Rededication event. (Attachment 1).
Staff recommends that the City Council approve the VVA’s request and consider whether to waive the rental fees in accordance with the fee waiver policy recently adopted by the City Council. 2 At its meeting on March 10, 2020, in connection with amendments to the City’s Master Fee Schedule, the City Council approved removing the “City Parking Lot” (aka the Veterans Memorial Plaza) from the fee schedule as a “facility for rent” and allow it to be used only “for those specific events traditionally held there and others only approved by the City Council.” Since that time, the City’s Master Fee Schedules states:
The downtown City parking lot will only be available for special events authorized by the City Council. The full cost for City staff overtime and all out of pocket City expenses will be determined and recouped for every authorized event. There will be no charge for City staff assistance during regular work week.
Current authorized special events are as follows:
• Mexican Independence Day Parade and Fiesta
• Kiwanis Christmas Parade and Fiesta
• Guadalupe PD/Lions Club Trunk or Treat
Accordingly, since the use of the Plaza to rededicate the flagpole is not one of the “currently authorized special events,” the City Council must approve the request.
In addition, at its meeting on May 14, 2024, the City Council approved a fee waiver policy. (See Attachment 3). The policy requires the City to use certain criteria when evaluation the merits of a fee waiver request. Two of the criteria appear to be relevant:
3. The imposition of fees would create a financial hardship on the organization.
4. Whether the proposed fee waiver: will have any significant impacts on the facilities or Recreation and Parks Department activities, and if so: (1) whether the applicant will provide volunteer services and materials to mitigate any impacts created by the event or program, or the impacts are adequately offset by the public benefit provided by the program or event….
Representatives of the VVA would need to state on the record before the Council that the imposition of these fees would be a financial hardship, but the fact that the VVA will be providing volunteer services and/or materials for the flag rededication as well as providing a public benefit clearly would be applicable. The City Council should identify one or both of these criteria as justifying the fee waiver, if that is the Council’s decision.
ATTACHMENTS:
1. Special Events Application 2024, tentatively approved by the City of Guadalupe Recreation Services Manager, Annis Barajas.
2. Special Event - Veteran’s Memorial Plaza Flagpole Rededication Event Assignment & Fee Statement 2024.
3. City Fee Waiver Policy
ATTACHMENT 1
Special Event- Veterans Memorial Plaza Flagpole Rededication Event Assignment and Fee Statement 2024
Renter: Vietnam Veterans of America Chapter 982, Deek Segovia Location: Veterans Memorial Plaza Parking Lot
Dates: September 21, 2024
Time: 8:00am-1:00pm
Recreation Department Veterans Memorial Plaza Parking Lot Rental • One Time Use Fee $100
• Daily Rate $200 x 1 Day= $200
TOTAL OF ENTIRE RENTAL $300
ATTACHMENT 2
1 CITY OF GUADALUPE FACILITY FEE WAIVER POLICY
Facility fees charged for the use of City facilities may be waived by the City of Guadalupe in certain limited cases. Any applicant requesting such a waiver must submit the appropriate documents demonstrating that the applicant or intended use fall within the following categories:
• Governmental agencies including, but not limited to other municipalities, County agencies, or special districts.
• Non-profit organizations, including 501(c)(3) and/or 501 (c)(4) organizations, located in Guadalupe or those who serve the Guadalupe community.
• Guadalupe organizations directly benefitting the Guadalupe community, such as a community group without non-profit status.
Any applicant requesting consideration of their waiver must do the following:
1. Submit a letter (or email) to the City of Guadalupe Recreation Services Manager the reason(s) for the requested facility fee waiver. The letter (or email) must be from an authorized representative or the agency or organization.
2. Submit a Facility Use Application form for the specific City facility for which the fee waiver is being requested.
3. Submit certification of the applicant’s 501(c)(3) or 501(c)4 status, non-profit organization documents, or any other applicable documents.
4. Submit a copy of the organization's mission statement, if any.
5. Submit the full security deposit for the event, including hourly fees. If the fee waiver is approved, the waived hourly fees will be refunded after the event, provided that if there is any damage or if there is inadequate clean-up after the event requiring the City to incur costs to repair the damage or finish cleaning up, these costs will be offset from the pre-paid hourly fees.
6. Submit documentary evidence of financial hardship.
7. If approved, submit a copy of insurance naming the City of Guadalupe as the Certificate Holder and an Endorsement stating," The City of Guadalupe, its officers, officials, agents, and volunteers are to be covered as additionally insured."
Facility fee waivers will be presented to the City Council for a recommendation to approve or deny the fee waiver request. The City Council will use the criteria listed on the next page of this Policy in making its decision. The decision of the City Council will be final.
In all cases, certain expenses incurred by the City, including but not limited to, the cost of a building attendant or the cost for utilities, may not be waived. The only fees that can be waived are the hourly rental fees.
ATTACHMENT 3
2 FACILITY FEE WAIVER CRITERIA
In reviewing a fee waiver request, if a fee is to be waived, the following criteria should be considered:
1. The organization must show proof of valid 501(c)(3), 501(c)(4), or other nonprofit status. If the organization, is not a nonprofit, then it must be a community service organization serving the City of Guadalupe and benefitting the residents of Guadalupe.
2. If applicable, the organization must submit their policy showing that they do not deny participants/players due to their inability to pay registration or participation fees.
3. The imposition of fees would create a financial hardship on the organization.
4. Whether the proposed fee waiver: will have any significant impacts on the facilities or Recreation and Parks Department activities, and if so: (1) whether the applicant will provide volunteer services and materials to mitigate any impacts created by the event or program, or the impacts are adequately offset by the public benefit provided by the program or event. If the applicant offers to provide volunteer services to offset any impacts of the event, such volunteer services are subject to approval of the Recreation and Parks Department which may require the use of a City building attendant (e.g., for an event where alcohol is served).
5. A Certificate of General Liability Insurance must be submitted 30 days prior to the event in an amount no less than two million dollars ($2,000,000) per occurrence for bodily injury, personal injury, and property damage, and endorsed to provide that "the City of Guadalupe and its officers, officials, employees, agents, and volunteers shall be additional names insureds" under such policies with coverage at least as broad as ISO form CG 2010 or CG 20 26.
6. Scheduling and use of facilities and events are subject to availability of requested facilities and do not have preference over City programs and activities or previous commitments to outside parties.
7. Reasonable steps must be made by the permittee to minimize impacts to the City of Guadalupe facilities, programs, and residents.
8. Within thirty (30) days of completion of the event for which a fee waiver was given, for future consideration of fee waivers, the permittee should provide a written report to the Recreation and Parks Department, to include at a minimum; number of participants; event revenue and expenses; and if any benefit to the City. After receiving this information from the permittee, the Recreation and Parks Department staff shall provide a written update to the City Council reporting on the event and will include the pros and cons of the event for future reference for any necessary improvements for facility use.
9. Failure to abide by the rules and procedures as set forth in this document may result in the respective permittee being denied for future fee waiver requests.