Agenda packet — Finance & Governance Committee, May 23, 2023

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AGENDA

OXNARD CITY COUNCIL

FINANCE AND GOVERNANCE COMMITTEE
Council Chambers, 305 West Third Street
May 23, 2023
Regular Meeting - 5:00 to 6:30 PM

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A. ROLL CALL, POSTING OF AGENDA, FLAG SALUTE
Consideration of Teleconference Participation pursuant to Assembly Bill 2449.

B. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA

A person may address the legislative body only on matters not appearing on the agenda and within the subject matter jurisdiction of the legislative body. Speaker requests shall be submitted as set forth on the first page of this agenda. Speakers are limited to three minutes. After 30 minutes, if all speakers have not had the opportunity to speak, the remaining speakers will be given an opportunity to speak prior to adjournment of the meeting. The legislative body cannot enter into a detailed discussion or take action on any items presented during public comments at this time. Such items may only be referred to the City Manager/Executive Director/Secretary for administrative action or scheduled on a subsequent agenda for discussion. Persons wishing to speak on public hearing items should do so at the time of the hearing.

C. CONSENT AGENDA

1. City Clerk Department
SUBJECT: Approval of Minutes.

RECOMMENDATION: That the Finance & Governance Committee approve the minutes of the May 9, 2023 regular meeting as presented.

Contact: Rose Chaparro, (805) 385-7805
D. REPORTS

1. Public Works Department

SUBJECT: Fiscal Year 2023-24 Landscape Maintenance Districts Initiation of Proceedings to Levy Assessments, Approval of a Consolidated Engineers Report and Declaration of Intention to Levy Assessments. (10 minutes)

RECOMMENDATION: That the Finance and Governance Committee recommend that the City Council acting as the legislative body of the City of Oxnard Landscape Maintenance Districts (LMDs):

1. Adopt “A Resolution of the City Council of the City of Oxnard, California, initiating proceedings to levy assessments against real property for fiscal year 2023-24 in connection with the city’s landscape maintenance districts”; and

2. Adopt “A Resolution of the City Council of the City of Oxnard, California, approving a consolidated engineer’s report regarding assessments against real property for fiscal year 2023-24 in connection with the city’s landscape maintenance districts”; and 2 OXNARD CITY COUNCIL: FINANCE & GOVERNANCE COMMITTEE
May 23, 2023 - Page 3

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/nlcZwr7NovA
Contact: Michael Wolfe, (805) 385-8055

2. Public Works Department
SUBJECT: Fiscal Year 2023-24 Special Tax Levy for Community Facility Districts Numbers 1, 2, 3, 4, 5 and 2000-3. (15 minutes)

RECOMMENDATION: That the Finance and Governance Committee recommend that the City Council acting as the legislative body for Community Facilities Districts (CFD) No. 1, 2, 3, 4, 5 and 2000-3:

1. Adopt a resolution setting a special tax rate within CFD No. 1 (Westport at Mandalay Bay) for Fiscal Year 2023-24; and

2. Adopt a resolution setting a special tax rate within CFD No. 2 (Westport at Mandalay Bay) for Fiscal Year 2023-24; and

3. Adopt a resolution setting a special tax rate within CFD No. 3 (Seabridge at Mandalay Bay) for Fiscal Year 2023-24; and

4. Adopt a resolution setting a special tax rate within CFD No. 4 (Seabridge at Mandalay Bay) for Fiscal Year 2023-24; and

5. Adopt a resolution setting a special tax rate within CFD No. 5 (Riverpark) for Fiscal Year 2023-24; and

6. Adopt a resolution setting a special tax rate within CFD No. 2000-3 (Oxnard Boulevard/Highway 101 Interchange) for Fiscal Year 2023-24; and

7. Authorize the Public Works Director, or designee, to execute an agreement for Billing of Direct Assessments with the Ventura County Auditor-Controller to provide the service of placement of direct assessments on the Ventura County Secured Tax Roll.

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/q_dimcmx_fQ
Contact: Michael Wolfe, (805) 385-8055

3. Public Works Department
SUBJECT: Fiscal Year 2022-23 Budget Appropriation for Community Facilities District Number 7, Wagon Wheel. (10 minutes)

RECOMMENDATION: That the Finance and Governance Committee recommend that the City Council approve a Fiscal Year 2022-23 budget appropriation from the available fund balance in the amount of $100,399 to the Special Districts Fund (120) for reimbursement of Fiscal Year 2022-23 authorized Developer reimbursements from the Wagon Wheel Community Facilities District.

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/XAKWiPrtoJA
Contact: Michael Wolfe, (805) 385-8055

4. Information Technology Department
3 OXNARD CITY COUNCIL: FINANCE & GOVERNANCE COMMITTEE
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SUBJECT:

Renewal of Purchase Order 8022 with CompuWave, Inc. for the Purchase of Information Technology Goods and Services. (10 minutes)

RECOMMENDATION:

That the Finance and Governance Committee recommend that the City Council approve and authorize the Mayor to renew Purchase Order 8022 for information technology goods and services with CompuWave, Inc., pursuant to a piggyback agreement from the County of Ventura Contract No. 8926, for an additional two-year term expiring June 30, 2025, and increasing the not to exceed amount from $1,600,000 to $2,600,000.

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/KcP2fVZ5Uxo
Contact: Helen Miller, (805)385-7446

5. Finance Department
SUBJECT: Public Safety Property Tax Assessment FY 2023-24. (10 minutes)

RECOMMENDATION: That the Finance and Governance Committee review and recommend to City Council the adoption of a resolution establishing the FY 2023-24 tax rates on property in the City of Oxnard for the payment of voter-approved obligations related to public safety personnel pension expenses.

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/nVV7c0BhqQw
Contact: Mark Sewell, 805-385-7851

6. Finance Department
SUBJECT: Annual Delegation of Investment Authority. (10 minutes) RECOMMENDATION: That the Finance and Governance Committee recommend the City Council adopt a resolution delegating investment authority to the City Treasurer for FY 2023-24.

Contact: Mark Sewell, 805-385-7851

7. Finance Department

SUBJECT: Recommend City Council authorize a Resolution Declaring the Intent of the City to be Reimbursed from Potential Bond Proceeds for Expenditures Made Towards Street and Alleyway Improvements. (10 minutes)

RECOMMENDATION: That the Finance and Governance Committee recommend the City Council approve and authorize a resolution declaring the intent of the City to be reimbursed for certain capital expenditures from the proceeds of indebtedness.

Presentation will be live on Consultant’s request.

Contact: Mark Sewell, 805-385-7851

8. Finance Department
SUBJECT: Proposed Fiscal Year 2023-24 Budget. (20 minutes)

RECOMMENDATION: That the Finance and Governance Committee recommend that City Council and Housing Authority Board conduct a public hearing on the Fiscal Year (FY) 2023-24 proposed budget on June 6, 2023, for the City of Oxnard and Oxnard Housing Authority and provide staff direction regarding any adjustments to the proposed budget, in preparation for final budget adoption on June 20, 2023.
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Please click the following link to view the required Measure M pre-recorded presentation video titled Fiscal Year 2023-2024 Budget Preview: https://youtu.be/1pkzfbZSYHE

Please click the following link to view the required Measure M pre-recorded presentation video titled Additional Information on Fiscal Year 2023-24 Proposed Annual Budget: https://youtu.be/3mXf8X-rre4
Contact: Mark Sewell, 805-385-7851
E. ITEMS FOR FUTURE AGENDAS

F. ADJOURNMENT

5 FINANCE AND GOVERNANCE COMMITTEE

AGENDA REPORT

CONSENT AGENDA
AGENDA ITEM NO. C.1

DATE: May 23, 2023

TO: Finance & Governance Committee

FROM: Rose Chaparro, City Clerk, (805) 385-7805, [email protected]

SUBJECT: Approval of Minutes.

RECOMMENDATION

That the Finance & Governance Committee approve the minutes of the May 9, 2023 regular meeting as presented.

BACKGROUND

Approval of Minutes.

STRATEGIC PRIORITIES

This agenda item is a routine operational item.

FINANCIAL IMPACT

There is no financial impact.

Prepared by: Rose Chaparro, City Clerk

ATTACHMENTS

1. MINUTES 05 09 2023 Finance & Governance

6 MINUTES

OXNARD CITY COUNCIL

FINANCE AND GOVERNANCE COMMITTEE
Regular Meeting
May 9, 2023

A. ROLL CALL, POSTING OF AGENDA, FLAG SALUTE
At 5:01 p.m., Chair John C. Zaragoza called to order the regular meeting of the Oxnard City Council Finance and Governance Committee in the City Hall Council Chambers at 305 W. Third Street, Oxnard, California. The City Clerk called the roll and announced the posting of the agenda. Chair Zaragoza, Member Gabriela Basua; and Member Gabriel (Gabe) Teran were present in person.

Member Basua arrived at 5:04 p.m.

Staff members present in person were Alexander Nguyen, City Manager ; Ashley Golden, Assistant City Manager ; Shiri Klima, Deputy City Manager; Stephen M.

Fischer, City Attorney; Michael Wolfe, Public Works Director; Terrel Harrison, Cultural & Community Services Director ; Renee Rakestraw, Community Services Manager; Steve Howlett, Assistant Public Works Directo r; Dee Lai, Assistant City Clerk; and Rose Chaparro, City Clerk.

Eden Alomeri, Revenue & Licensing Director & Assistant City Treasurer participated via videoconference.

Dee Fairbanks, General Manager with American Golf Corporation, at River Ridge Golf Club also attended in person.

Consideration of Teleconference Participation pursuant to Assembly Bill 2449.

B. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA (None received.)

C. CONSENT AGENDA

1. City Clerk Department
SUBJECT: Approval of Minutes.

RECOMMENDATION: That the Finance & Governance Committee approve the minutes of the April 25, 2023 regular meeting as presented.

It was moved by Memb er Teran; seconded by Chair Zaragoza; to approve the Information/Consent item as presented. VOTE: Teran and Zaragoza voted in favor; the motion carried 2-0. Member Basua was absent during this vote.

7 MAY 9, 2023 OXNARD CITY COUNCIL PAGE 2

FINANCE & GOVERNANCE COMMITTEE

D. REPORTS

1. Cultural & Community Services Department
SUBJECT: Lease Agreement with Catalyst Family, Incorporated. (10 minutes)

RECOMMENDATION: That the Finance and Governance Committee recommended that the City Council approve and authorize the Mayor to execute a lease agreement for three (3) years with monthly lease rates of $8,614.10 (FY 23-24), $8,829.45 (FY 24-25) and $9,050.19 (FY 25-26) with Catalyst Family, Incorporated (CFI) for a portion of South Oxnard Community Center, 200 East Bard Road.

Terrel Harrison, Cultural & Community Services Director was available to answer the Committee’s questions. No public comments were received. Discussion ensued among the Committee and staff.

It was moved by Member Teran , seconded by Member Basua, to approve the recommended action as presented. VOTE: Basua, Teran, and Zaragoza voted in favor; the motion carried 3-

0. 2. Public Works Department
SUBJECT: Fiscal Year 2023-24 Golf Annual Plan. (20 minutes)

RECOMMENDATION: That the Finance and Governance Committee recommend the City Council receive and file the River Ridge Golf Course Annual Plan for Fiscal Year 2023-24 as prepared by American Golf Corporation.

Steve Howlett, Assistant Public Work s Director was available to answer the Committee’s questions. Public comments were received from Eduardo Huerta.

It was moved by Chair Zaragoza; seconded by Member Basua, to approve the recommended action as presented. VOTE: Basua, Teran, and Zaragoza voted in favor; the motion carried 3-

0. E. ITEMS FOR FUTURE AGENDAS (No requests were made.)

F. ADJOURNMENT
There being no further business on the agenda, and without objection, Chair Zaragoza adjourned the meeting at 5:20 p.m.

ROSE CHAPARRO JOHN C. ZARAGOZA
City Clerk Chair

8 CITY COUNCIL AGENDA REPORT

REPORTS
AGENDA ITEM NO. D.1

DATE: May 23, 2023

TO: Finance and Governance Committee

FROM: Michael Wolfe, Public Works Director, (805) 385-8055, [email protected]

RECOMMENDATION

That the Finance and Governance Committee recommend that the City Council acting as the legislative body of the City of Oxnard Landscape Maintenance Districts (LMDs):

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/nlcZwr7NovA

BACKGROUND

Special Districts is a Division of the Public Works Department and manages a total of 48 special financing districts which include 36 Landscape Maintenance Districts (“LMDs”). The City has allowed property owners (i.e. developers) to use special financing districts (e.g. LMDs) to fund the annual cost of maintaining certain public improvements that have a special benefit to the properties within the district. Typically, the developer installed the public improvements at the time of development and benefiting property owners pay for the cost of maintaining the improvements (i.e., special benefit) through a special assessment included on the property’s annual property tax bill. Revenue received from the assessment funds the cost to provide the Special Benefit, as outlined in the Consolidated Engineer’s Report attached hereto as Attachment 1 (“Report”).

Assessments are levied annually and collected on the property tax roll. Each year, the City Council must conduct proceedings to levy the assessments. Revenue received from the assessments partially funds the ongoing maintenance of public improvements provided by each district and, in some cases, is collected for future work that is conducted on a less than annual basis.

If the Committee approves the recommendation in this report, a Public Hearing will be set for June 20, 2023, during which the City Council will consider three resolutions. If adopted by Council, the Resolutions will: 1) initiate proceedings to levy the annual assessments; 2) approve the Consolidated Engineer’s Report for the districts; and 3) declare the intent 9 to levy assessments on the FY 2023-24 property tax roll. This is a process that is required each year.

DISCUSSION

The Landscaping and Lighting Act of 1972 (Streets & Highways Code Section 22500 et seq.) (“Act”) requires the City Council to annually Initiate Proceedings by Resolution (Attachment 2), approve the Consolidated Engineers Report through a Resolution (Attachment 3), and state the Council’s Intent to Levy the annual assessment through a Resolution (Attachment 4).

In compliance with the Act, an annual review and evaluation of each district’s revenues and expenditures, contained in the Consolidated Engineer’s Report, is conducted. This Report consolidates the City’s 36 LMDs into a single report, but evaluates each district individually. The Report includes a description of the improvements, the projected annual maintenance costs, and funding to be collected for projects done on a less than annual basis, if any, the method of assessment apportionment for each lot or parcel within each district’s boundaries, and a diagram showing the parcels within that district. The Report also provides an analysis of each district’s annual financial status. It separates and apportions the cost of General Benefit, other costs funded by a non-assessment fund (e.g. the General Fund), and the cost of Special Benefit to the benefiting properties is funded by the applied assessment rate. The actual services provided to each district varies from district to district and are based upon the property owner approved services and funding.

The applied assessment rate is the amount needed to fund the services of each district and is the amount actually levied on the property tax roll. It cannot exceed the maximum assessment rate that was originally approved for each district. After completing an individual analysis of each district’s current level of service, anticipated expenditures, fund balance, assigned reserve levels, and future work that is conducted on a less than annual basis, it is recommended to set the applied rates as set forth in the Report. Parcel specific detail of the proposed maximum and applied assessment is included in the Report as attached and is also available from the City Clerk’s office and accessible from the City’s website (www.oxnard.org).

Costs considered to be of General Benefit, as defined in the Report, are not allowed to be assessed to the properties and therefore are apportioned as a non-assessment fund (e.g. General Fund) expense. The General Fund is proposed to cover additional costs, which are outlined in the Fiscal Impact section of this Report. The FY 2023-24 Proposed Operating Budget includes funds necessary to cover these costs.

Funds received for the benefit of each district are restricted and can only be used within the district and for the purposes for which they were collected. Some of the District’s applied assessment rates are proposed to increase from last year. This is to account for services such as district-wide tree trimming, sidewalk grinding, removal and replacement of displaced sidewalks, irrigation repair, electrical systems repair, and lighting repair and replacement. The assessment is levied at a rate that is no higher than the maximum assessment.

The deadline for delivering the Assessment information to Ventura County is July 5, 2023.

STRATEGIC PRIORITIES

This agenda item is a routine operational item or does not relate to the five strategic priorities adopted by City Council on March 16, 2021.

FINANCIAL IMPACT

For FY 2023-24, the preliminary total projected expenditures for the LMDs is $3,865,311.60. This will be funded though $683,725.51 in 2023-24 real property assessments, $2,803,375.95 in existing funds in the LMD accounts, $17,151 from interest income, a general benefit contribution of $297,089.06 from the General Fund, and a subsidy from the General Fund of $63,970.08 for utility overages.

COMMITTEE OUTCOME

Prepared by: Steve Howlett, Assistant Public Works Director

10 ATTACHMENTS

1. FY23-24 Consolidated Engineers Report LMD Placeholder

2. Oxnard LMD Reso Initiating

3. Oxnard Reso Approving Consolidated ER

4. Oxnard Reso Intent to Levy (ROI)

5. City of Oxnard Special Districts Map

6. City of Oxnard Special Districts List

7. Presentation

11 https://www.oxnard.org/wp-content/uploads/2023/05/Oxnard-LMD-Engineers-Report-23-24-Intent.pdf 12 CITY COUNCIL OF THE CITY OF OXNARD
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OXNARD, CALIFORNIA,

INITIATING PROCEEDINGS TO LEVY ASSESSMENTS AGAINST REAL PROPERTY FOR FISCAL YEAR 2023-24 IN CONNECTION WITH THE CITY’S LANDSCAPE

MAINTENANCE DISTRICTS
WHEREAS, the City Council of the City of Oxnard has, by prior resolutions, established a number of Landscape Maintenance Districts (collectively the “Assessment Districts”) pursuant to the Landscaping and Lighting Act of 1972 (Streets & Highways Code Section 22500 et seq.) (the “Act”); and
WHEREAS, a complete list of the Assessment Districts is attached hereto as Exhibit A and incorporated herein by reference as though fully set forth; and WHEREAS, for each of the Assessment Districts, the City levies an annual assessment against real property to fund public improvements that specially benefits the parcels located in that Assessment District; and
WHEREAS, the City has engaged NBS (the “Assessment Engineer”) to provide assessment engineering services in connection with the Assessment Districts; and WHEREAS, the City Council desires to initiate proceedings to levy assessments in connection with the Assessment Districts for Fiscal Year (FY) 2023-24.

NOW, THEREFORE, the City Council of the City of Oxnard resolves:

1. Recitals. The above recitals are all true and correct.

2. Initiation of Proceedings. Pursuant to Section 22622 of the Act, the City Council hereby initiates proceedings in connection with the Assessment Districts for the levy of assessments for FY 2023-24.

3. Order to Engineer. The Assessment Engineer is hereby ordered to prepare and file reports pursuant to Section 22565 et seq. of the Act with respect to the FY 2023-24 levy of assessments in connection with each of the Assessment Districts. These reports may be consolidated into a single document for administrative convenience.

4. Improvements. The improvements associated with each of the Assessment Districts are substantially the same improvements as in FY 2022-23.

5. Projects. In accordance with Streets and Highways Code Section 22660(a), the City Council hereby determines that the estimated cost of certain proposed improvements are greater than can conveniently be raised from a single assessment and, as a result, will be collected in installments. General descriptions of these improvements, as well as the estimated costs thereof, the number of annual installments and years 13 Resolution No.

Resolution Initiate Proceedings LMDs FY2023-24

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during which they are to be collected, and the maximum amount of each annual installment, are described in the Exhibit B attached hereto and incorporated herein by reference as though fully set forth. Moneys collected from the annual installments shall be accumulated in the improvement fund until there are sufficient moneys to pay all or part of the cost of the improvements.

6. Severability. If any provision of this Resolution or the application of any such provision is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable and that the City Council declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution.

7. Effective Date. This Resolution shall be effective immediately upon adoption.

8. Certification. The City Clerk shall certify to the adoption of this Resolution, and shall maintain on file as a public record this Resolution.

PASSED, APPROVED AND ADOPTED on this ____ day of JUNE, 2023 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________________
John C. Zaragoza, Mayor
ATTEST:
___________________________________
Rose Chaparro, City Clerk
APPROVED AS TO FORM:
14 Resolution No.

Resolution Initiate Proceedings LMDs FY2023-24

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___________________________________
Stephen M. Fischer, City Attorney
15 Resolution No.

Resolution Initiate Proceedings LMDs FY2023-24

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EXHIBIT A

CITY OF OXNARD

LANDSCAPE MAINTENANCE DISTRICTS
FormationDistrict Name Date Resolution No.

Landscape Maintenance District No. 3 (River Ridge) March 18,1986 8983 Landscape Maintenance District No. 10 (Country Club Estates) December 13, 1988 9587 Landscape Maintenance District No. 11 (St. Tropez) January 3, 1989 9603 Landscape Maintenance District No. 12 (Standard Pacific) March 28, 1989 9665 Landscape Maintenance District No. 13 (Le Village) March 20, 1990 9894 Landscape Maintenance District No. 14 (California Cove) June 5, 1990 9972 Landscape Maintenance District No. 16 (California Lighthouse) July 9, 1991 10206 Landscape Maintenance District No. 23 (Greystone) June 18, 1996 11071 Landscape Maintenance District No. 24 (Vineyards) June 18, 1996 11072 Landscape Maintenance District No. 25 (The Pointe) June 18, 1996 11073 Landscape Maintenance District No. 27 (Rose Island) June 24, 1997 11259 Landscape Maintenance District No. 28 (Harborside) June 24, 1997 11260 Landscape Maintenance District No. 30 (Haas Automation) June 24, 1997 11261 Landscape Maintenance District No. 31 (Rancho De La Rosa) June 23, 1998 11415 Landscape Maintenance District No. 32 (Oak Park) February 23, 1999 11505 Landscape Maintenance District No. 33 (El Paseo) October 19, 1999 11653 Landscape Maintenance District No. 34 (Sunrise Pointe & Sunset Cove) October 19, 1999 11654
Landscape Maintenance District No. 36 (Villa Santa Cruz & Villa Carmel) January 25, 2000 11684
Landscape Maintenance District No. 37 (Pacific Breeze) January 25, 2000 11685 Landscape Maintenance District No. 38 (Aldea Del Mar) November 28, 2000 11863 Landscape Maintenance District No. 39 (Promesa/Sueno & DR Horton/Seawinds) March 6, 2001 11905
Landscape Maintenance District No. 40 (Cantada) January 8, 2002 12078 Landscape Maintenance District No. 41 (Pacific Cove) January 8, 2002 12079 Landscape Maintenance District No. 42 (Cantabria &
Coronado) May 14, 2002 12144
Landscape Maintenance District No. 43 (Greenbelt) January 7, 2003 12295 Landscape Maintenance District No. 46 (Daily Ranch) June 24, 2003 12440 16 Resolution No.

Resolution Initiate Proceedings LMDs FY2023-24

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Landscape Maintenance District No. 47 (Sycamore Place) April 22, 2003 12355 Landscape Maintenance District No. 49 (Cameron Ranch) June 3, 2003 12394 Landscape Maintenance District No. 50 (Pleasant Valley Senior Housing) June 10, 2003 12404
FormationDistrict Name Date Resolution No.

Resolution Initiate Proceedings LMDs FY2023-24

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EXHIBIT B

CITY OF OXNARD

LANDSCAPE MAINTENANCE DISTRICT PROJECTS
18 Resolution No.

Resolution Initiate Proceedings LMDs FY2023-24

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19 Resolution No.

Resolution Initiate Proceedings LMDs FY2023-24

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20 Resolution No.

Resolution Initiate Proceedings LMDs FY2023-24

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21 Resolution No.

Resolution Initiate Proceedings LMDs FY2023-24

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22 Resolution No.

Resolution Initiate Proceedings LMDs FY2023-24

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23 Resolution No.

Resolution Initiate Proceedings LMDs FY2023-24

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24 Resolution No.

Resolution Initiate Proceedings LMDs FY2023-24

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25 Resolution No.

Resolution Initiate Proceedings LMDs FY2023-24

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26 CITY COUNCIL OF THE CITY OF OXNARD
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OXNARD, CALIFORNIA, APPROVING A CONSOLIDATED ENGINEER’S REPORT REGARDING
ASSESSMENTS AGAINST REAL PROPERTY FOR FISCAL YEAR 2023-24 IN CONNECTION WITH THE CITY’S LANDSCAPE MAINTENANCE DISTRICTS WHEREAS, the City Council of the City of Oxnard has, by prior resolutions, established a number of Landscape Maintenance Districts (collectively the “Assessment Districts”) pursuant to the Landscaping and Lighting Act of 1972 (Streets & Highways Code Section 22500 et seq.) (the “Act”); and
WHEREAS, a complete list of the Assessment Districts is attached hereto as Exhibit A and incorporated herein by reference as though fully set forth; and WHEREAS, in connection with each of the Assessment Districts, the City levies an annual assessment against real property to fund public improvements that specially benefit the parcels located in that Assessment District; and
WHEREAS, the City has engaged NBS (the “Assessment Engineer”) to provide assessment engineering services in connection with the Assessment Districts; and WHEREAS, by prior resolution the City Council ordered the Assessment Engineer to prepare and file reports pursuant to Section 22565 et seq. of the Act with respect to the FY 2023-24 levy of assessments for each of the Assessment Districts; and
WHEREAS, the Assessment Engineer has prepared and filed a consolidated report entitled “City of Oxnard Fiscal Year 2023-24 Consolidated Engineer’s Report for Landscape Maintenance Districts,” (the “Report”) which is on file in the Office of the City Clerk, available for public inspection, and the Report is incorporated herein by this reference; and WHEREAS, the City Council now desires to approve the Report NOW, THEREFORE, the City Council of the City of Oxnard resolves:

1. Recitals. The above recitals are all true and correct and incorporated herein by this reference.

2. Approval of Report. The City Council hereby approves the Report as filed.

3. Severability. If any provision of this Resolution or the application of any such provision is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of 27 Resolution No.

Resolution Approving ER – LMDs FY23-24

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this Resolution are severable and that the City Council declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution.

6. Effective Date. This Resolution shall be effective immediately upon adoption.

7. Certification. The City Clerk shall certify to the adoption of this Resolution, and shall maintain on file as a public record this Resolution.

PASSED, APPROVED AND ADOPTED on this ____ day of JUNE, 2023 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________________
John C. Zaragoza, Mayor
ATTEST:
___________________________________
Rose Chaparro, City Clerk
APPROVED AS TO FORM:
___________________________________
Stephen M. Fischer, City Attorney
28 Resolution No.

Resolution Approving ER – LMDs FY23-24

Page 3 ends

EXHIBIT A

CITY OF OXNARD

LANDSCAPE MAINTENANCE DISTRICTS
FormationDistrict Name Date Resolution No.

Resolution Approving ER – LMDs FY23-24

Page 4 ends

FormationDistrict Name Date Resolution No.

Resolution Approving ER – LMDs FY23-24

Page 5 ends

31 CITY COUNCIL OF THE CITY OF OXNARD
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OXNARD, CALIFORNIA,

DECLARING ITS INTENTION TO LEVY ASSESSMENTS AGAINST REAL PROPERTY FOR FISCAL YEAR 2023-24 IN CONNECTION WITH THE CITY’S

LANDSCAPE MAINTENANCE DISTRICTS
WHEREAS, the City Council of the City of Oxnard has, by prior resolutions, established a number of Landscape Maintenance Districts (collectively the “Assessment Districts” and each an “Assessment District”) pursuant to the Landscaping and Lighting Act of 1972 (Streets & Highways Code Section 22500 et seq.) (the “Act”); and
WHEREAS, a complete list of the Assessment Districts is attached hereto as Exhibit A and incorporated herein by reference; and
WHEREAS, in connection with each of the Assessment Districts, the City levies an annual assessment against real property to fund landscape maintenance that specially benefits the parcels located in that Assessment District; and
WHEREAS, the City has engaged NBS (the “Assessment Engineer”) to provide assessment engineering services in connection with the Assessment Districts; and WHEREAS, by prior resolution the City Council ordered the Engineer to prepare and file reports pursuant to Section 22565 et seq. of the Act with respect to the FY 2023-24 levy of assessments in connection with each of the Assessment Districts; and WHEREAS, by prior resolution the City Council approved as filed a consolidated report of the Assessment Engineer entitled “City of Oxnard Fiscal Year 2023-24 Consolidated Engineer’s Report for Landscape Maintenance Districts” (the “Report”), which is on file in the Office of the City Clerk, available for public inspection, and incorporated herein by reference; and WHEREAS, the City Council desires to declare its intention to levy the assessments for FY 2023- 24 as described in the Report.

NOW, THEREFORE, the City Council of the City of Oxnard resolves:

1. Recitals. The above recitals are all true and correct.

2. Declaration of Intent. The City Council hereby declares its intention to levy and collect assessments for FY 2023-24 within each Assessment District.

3. Name and Location of Assessment Districts. The name of each Assessment District is set forth in Exhibit A. The locations of each Assessment District are generally described in the name of the Assessment District and more specifically described in the Report. 32 Resolution No.

Resolution of Intent to Levy – LMDs FY23-24

Page 2 ends

4. Description of Improvements. Each Assessment District will fund landscape improvements. No substantial change to the improvements is proposed to be made for FY 2023-

24. 6. Reference to Report. Reference is made to the Report for a full and detailed description of (i) the landscape improvements; (ii) the boundaries of the Assessment Districts; and (iii) the proposed assessments upon assessable lots and parcels of land within the Assessment Districts.

The Report describes, among other things, each affected parcel of real property and the amount of the assessment for each such affected parcel for FY 2023-24.

7. Inflation Adjustment. As set forth in more detail in the Report, the assessments in connection with most of the Assessment Districts will be higher than in FY 2022-23. In no case will the rates for a Assessment District be higher than the maximum assessment rate previously approved for the Assessment District, as adjusted by a previously approved CPI adjustment.

8. Public Hearing. On June 20, 2023 at 6:00 p.m. or as soon thereafter as practical, in the City Council Chambers, at 305 West Third Street, Oxnard, California, the City Council will hold a full and fair public hearing on the question of the levy of the proposed assessments for FY 2023-24 (the “Hearing”). At the Hearing, the City Council will also hear and consider any objections or protests to the Report.

9. Notice. Notice of the Hearing shall be given in the manner set forth in Section 22626(a) of the Act.

10. Protest. Pursuant to Section 22628 of the Act, any interested person may, prior to the conclusion of the Hearing, file a written protest with the City Clerk of the City of Oxnard or, having previously filed a protest, may file a written withdrawal of that protest. A written protest shall state all grounds of objection. A protest by a property owner shall contain a description sufficient to identify the property owned by the property owner.

11. Severability. If any provision of this Resolution or the application of any such provision is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable and that the City Council declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution.

12. Effective Date. This Resolution shall be effective immediately upon adoption.

13. Certification. The City Clerk shall certify to the adoption of this Resolution, and shall maintain on file as a public record this Resolution.

PASSED, APPROVED AND ADOPTED on this ____ day of JUNE, 2023 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
33 Resolution No.

Resolution of Intent to Levy – LMDs FY23-24

Page 3 ends

________________________________________
John C. Zaragoza, Mayor
ATTEST:
___________________________________
Rose Chaparro, City Clerk
APPROVED AS TO FORM:
___________________________________
Stephen M. Fischer, City Attorney
34 Resolution No.

Resolution of Intent to Levy – LMDs FY23-24

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EXHIBIT A

CITY OF OXNARD

LANDSCAPE MAINTENANCE DISTRICTS
FormationDistrict Name Date Resolution No.

Resolution of Intent to Levy – LMDs FY23-24

Page 5 ends

FormationDistrict Name Date Resolution No.

Landscape Maintenance District No. 51 (Pfeiler) April 19, 2005 12799 Landscape Maintenance District No. 52 (Wingfield) February 1, 2005 12768 Landscape Maintenance District No. 53 (Huff Court) June 7, 2005 12879 Landscape Maintenance District No. 54 (Meadowcrest) March 28, 2006 13024 Landscape Maintenance District No. 55 (Wingfield West) March 28, 2006 13025 Landscape Maintenance District No. 58 (Westwind) June 6, 2006 13069 Landscape Maintenance District No. 60 (Artisan) March 3, 2009 13604 36 4
9 5
34 7
8 1
2 3 & 4
1 &
2 03
30 14
12 36
43 28
38 31
46 39
13 25
51 52
10 16
47 37
34 42
24 58
41 23
33 11
40 60
27 55
50 4954
32 53
This map is compiled by the City of Oxnard GIS Division, which is developed and operated solely for the convenience of the City. The City does not make any representations or warranties regarding the use, accuracy, reliability, and/or completeness of this map and no decision involving a risk of economic loss or physical injury should be made in reliance thereon. µ Maintenance Assessment District (District No.)
Waterway Assessment District (Zone No.)
Community Facilities District (District No.)
Landscape Maintenance District (District No.)

CITY OF OXNARD SPECIAL DISTRICTS
3,000 0 3,000 6,000
Feet
Created by:

Geographic Information Systems Division
March 2023
Data Source:

City of Oxnard GIS Division
County of Ventura GIS Program
37 1 & 2 – Westport at Mandalay Bay 7 – Wagon Wheel
3 & 4 – Seabridge at Mandalay Bay 8 – Sakioka Farms
5 – Riverpark 9 – Northshore at Mandalay Bay
3 – Riverridge 37 – Pacific Cove
10 – Country Club 38 – Aldea Del Mar
11 – St Tropez 39 – El Sueno Promesa
12 – Standard Pacific 40 – Cantada
13 – Le Village 41 – Pacific Cove
14 – California Cove 42 – Cantabria/Coronado
16 – California Lighthouse 43 – Greenbelt
23 – Greystone 46 – Daily Ranch
24 – Vineyards 47 – Sycamore Place
25 – The Pointe 49 – Cameron Ranch
27 – Rose Island 50 – PV Senior Housing
28 – Harborside 51 – Pfeiler
30 – Haas Automation 52 – Wingfield
31 – Rancho De La Rosa 53 – Huff Court
32 – Oak Park 54 – Meadowcrest
33 – El Paseo 55 – Wingfield West
34 – Sunrise Pt/Sunset Cove 58 – Westwind
36 – Villa Santa Cruz 60 – Artisan
Zone 1 – Mandalay Bay Zone 2 – Harbour Island

MAINTENANCE ASSESSMENT DISTRICT

WATERWAYS ASSESSEMENT DISTRICTS
4 – Mandalay Beach/Colony

LANDSCAPE MAINTENANCE DISTRICTS
CITY OF OXNARD – SPECIAL DISTRICTS
LANDSCAPE MAINTENANCE DISTRICT * COMMUNITY FACILITIES DISTRICTS WATERWAYS ASSESSMENT DISTRICTS * MAINTENANCE ASSESSMENT DISTRICTS

COMMUNITY FACILITIES DISTRICTS
38 Fiscal Year 2023-24 Landscape Maintenance
Districts Initiation of Proceedings to Levy
Assessments, Approval of a Consolidated
Engineers Report and Declaration of Intention
to Levy Assessments.

Finance & Governance Committee
May 23, 2023
City Council
June 6, 2023
Eric L. Storrie
Special Districts Manager
39 That the Finance and Governance Committee recommend that the City Council acting as the legislative body of the City of Oxnard Landscape Maintenance Districts (LMDs):

3. Adopt “A Resolution of the City Council of the City of Oxnard, California, declaring its intention to levy assessments against real property for fiscal year 2023-24 in connection with the city’s landscape maintenance districts.”
RECOMMENDATION 2
40 MAP OF SPECIAL DISTRICTS IN THE CITY OF OXNARD 3
More information can be
found at:
oxnard.org/city-departm
ent/finance/special-asse
ssment-districts/
41 • The Special Districts Division of the Public Works Department manages 48 Assessment Districts which includes 36 LMDs. • The City has allowed property owners (i.e. developers) to use special financing districts (e.g. LMDs) to fund the annual cost of maintaining certain public improvements that benefit the properties within the district.
• Typically, the developer installed the public improvements at the time of development and benefiting property owners pay for the cost of maintaining the improvements (i.e., special benefit) through a special assessment included on the property’s annual property tax bill.

BACKGROUND 4
42 • Revenue received from the assessment funds the cost to provide the Special Benefit, as outlined in the Consolidated Engineer’s Report
• Assessments are levied annually and collected on the property tax roll. Each year, the City Council must conduct proceedings to levy the assessments.
• Revenue received from the assessments partially funds the ongoing maintenance of public improvements provided by each district and, in some cases, is collected for future work that is conducted on a less than annual basis.

BACKGROUND 5
43 • If the Committee approves the recommendation in this report a Public Hearing will be set for June 20, 2023, during which the City Council will consider three resolutions.
• If adopted by Council, the Resolutions will:
• 1) initiate proceedings to levy the annual assessments; • 2) approve the Consolidated Engineer’s Report for the districts; and
• 3) declare the intent to levy assessments on the FY
2023-24 property tax roll.
• This is a process that is required each year.

BACKGROUND 6
44 • The Landscaping and Lighting Assessment Act of 1972 requires the City Council to annually Initiate Proceedings by Resolution, approve the Consolidated Engineers Report
through a Resolution, and state the Council’s Intent to Levy the annual assessment through a Resolution
• In compliance with the Act, an annual review and evaluation of each district’s revenues and expenditures, contained in the Consolidated Engineer’s Report, is conducted.
• This Report consolidates the City’s 36 LMDs into a single report, but evaluates each district individually.

DISCUSSION 7
45 • The Report includes a description of the improvements, the projected annual maintenance costs, and funding to be
collected for projects done on a less than annual basis, if any, the method of assessment apportionment for each lot or
parcel within each district’s boundaries, and a diagram showing the parcels within that district.
• The Report also provides an analysis of each district’s annual financial status.
• It separates and apportions the cost of General Benefit, other costs funded by a non-assessment fund, and the cost of
Special Benefit to the benefiting properties is funded by the applied assessment rate.

DISCUSSION 8
46 • The actual services provided to each district varies from district to district and are based upon the property owner approved services and funding.
• The applied assessment rate is the amount needed to fund the services of each district and is the amount actually levied on the property tax roll.
• It cannot exceed the maximum assessment rate that was originally approved for each district.
• After completing an individual analysis of each district’s current level of service, anticipated expenditures, fund balance, assigned reserve levels, and future work, it is recommended to set the applied rates as set forth in the Report.

DISCUSSION 9
47 • Parcel specific detail of the proposed maximum and applied assessment is included in the Report as attached and is also available from the City Clerk’s office and accessible from the City’s website (www.oxnard.org).
• Costs considered to be of General Benefit, as defined in the Report, are not allowed to be assessed to the properties and therefore are apportioned as a non-assessment fund expense. • The General Fund is proposed to cover additional costs, which are outlined in the Fiscal Impact section of this Report. • The FY 2023-24 Proposed Operating Budget includes funds necessary to cover these costs.

DISCUSSION 10
48 • Funds received for the benefit of each district are restricted and can only be used within the district and for the purposes for which they were collected.
• Some of the District’s applied assessment rates are proposed to increase from last year. This is to account for services such as district-wide tree trimming, sidewalk grinding, removal and replacement of displaced sidewalks, irrigation repair, electrical systems repair, and lighting repair and replacement.
• The assessment is levied at a rate that is no higher than the maximum assessment.
• The deadline for delivering the Assessment information to Ventura County is July 5, 2023.

DISCUSSION 11
49 • For FY 2023-24, the preliminary total projected expenditures for the LMDs is $3,865,311.60.
• This will be funded though
• $683,725.51 in 2023-24 real property assessments;
• $2,803,375.95 in existing funds in the LMD accounts;
• $17,151 from interest income;
• a general benefit contribution of $297,089.06 from the General Fund; and
• a subsidy from the General Fund of $63,970.08 for utility overages.

FINANCIAL IMPACT 12
50 QUESTIONS
13 51

FINANCE AND GOVERNANCE COMMITTEE

AGENDA REPORT

REPORTS
AGENDA ITEM NO. D.2

DATE: May 23, 2023

TO: Finance & Governance Committee

FROM: Michael Wolfe, Public Works Director, (805) 385-8055, [email protected]

SUBJECT: Fiscal Year 2023-24 Special Tax Levy for Community Facility Districts Numbers 1, 2, 3, 4, 5 and 2000-3. (15 minutes)

RECOMMENDATION

That the Finance and Governance Committee recommend that the City Council acting as the legislative body for Community Facilities Districts (CFD) No. 1, 2, 3, 4, 5 and 2000-3:

1. Adopt a resolution setting a special tax rate within CFD No. 1 (Westport at Mandalay Bay) for Fiscal Year 2023-24; and

2. Adopt a resolution setting a special tax rate within CFD No. 2 (Westport at Mandalay Bay) for Fiscal Year 2023-24; and

3. Adopt a resolution setting a special tax rate within CFD No. 3 (Seabridge at Mandalay Bay) for Fiscal Year 2023-24; and

4. Adopt a resolution setting a special tax rate within CFD No. 4 (Seabridge at Mandalay Bay) for Fiscal Year 2023-24; and

5. Adopt a resolution setting a special tax rate within CFD No. 5 (Riverpark) for Fiscal Year 2023-24; and

6. Adopt a resolution setting a special tax rate within CFD No. 2000-3 (Oxnard Boulevard/Highway 101 Interchange) for Fiscal Year 2023-24; and

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/q_dimcmx_fQ

BACKGROUND

Special Districts is a Division of the Public Works Department and manages a total of 48 special financing districts which includes 6 Community Facilities Districts (CFDs), commonly known as Mello-Roos Districts.

These are used to finance local public facilities and provide funding for public services. A CFD can fund public improvements with a useful life of at least five years, such as public infrastructure, park, recreation, and open space facilities, school facilities, libraries, and child care facilities. CFDs can also fund ongoing services such as police and fire protection, parks, parkways, open space maintenance, and flood and storm protection.

The City of Oxnard has both bonded and non-bonded CFDs. 52 DISCUSSION

CFD No. 1 Special Tax

On October 3, 2000, City Council adopted Resolution No. 11,823 establishing CFD No. 1. On October 24, 2000, City Council adopted Ordinance No. 2541 which was amended by Ordinance No. 2591 adopted on February 5, 2002, to levy a special tax sufficient to pay principal, interest, other periodic costs and administrative expenses with respect to the bonds of CFD No. 1. In each fiscal year thereafter, the Government Code requires the City Council to adopt a resolution levying a special tax rate for that fiscal year. Resolution No. 12,082 established a Revised Rate and Method for CFD No. 1. The estimated FY 2023-24 maximum special tax for CFD No. 1 is $975,295.08 and staff anticipate a special tax of $697,414.

The reserve fund will be credited to property owners in the final year of the bonds, to the extent available. The remaining balance of the bonds after the September 1, 2023 debt service payment is $5,730,000 with the final payment due on September 1, 2033.

CFD No. 2 Special Tax

On October 3, 2000, City Council adopted Resolution No. 11,825 establishing CFD No. 2. On October 24, 2000, City Council adopted Ordinance No. 2542, which was amended by Ordinance No. 2592 adopted on February 5, 2002, to levy a special tax sufficient to pay costs of the services and incidental expenses relating to the maintenance of CFD No. 2. In each fiscal year thereafter, the Government Code requires the City Council to adopt a resolution levying a special tax rate for that fiscal year. Resolution No. 12,082 established a Revised Rate and Method (RMA) for CFD No. 2.

Special Districts staff and representatives from CFD No. 2 met in February and March 2023 and discussed various services, improvements, and costs that were requested by the property owners. These items included on-call services such as fence repair, irrigation repair, electrical repair, storm drain filters, water quality remediation, tree trimming, replanting landscapes, installing mulch, and an updated on-site reserve study. The community also discussed options for the special tax levy credit and they are requesting a $400,000 levy credit for FY 23-24.

While the estimated FY 2023-24 maximum special tax for CFD No. 2 is $856,381.60 (which includes an allowable 2% CPI adjustment per the RMA), the applied amount to be levied is to be $559,848. This represents

65.37% of the maximum special tax for FY 2023-24.

CFD No. 3 Special Tax

On December 14, 2004, City Council adopted Resolution No. 12,737 (the “Resolution of Formation”) establishing CFD No. 3 and Ordinance No. 2676 to levy a special tax sufficient to pay principal, interest, and other periodic costs and administrative expenses with respect to the bonds of CFD No. 3. In each fiscal year thereafter, the Government Code requires the City Council to adopt a resolution levying a special tax rate for that fiscal year. The estimated FY 2023-24 maximum special tax for CFD No. 3 is $3,104,488.50 and staff anticipate a special tax of $1,783,572.

There is no formal reserve fund for CFD No. 3 as the bonds were refinanced as a private placement in 2013, with no requirement to fund a reserve. The fund balance consists only of funds necessary to pay principal, interest, and administrative costs. The remaining balance of the bonds after the September 1, 2023 debt service payment is $18,820,000 with the final payment due on September 1, 2035. 53 CFD No. 4 Special Tax

On December 14, 2004, City Council adopted Resolution No. 12,739 (the “Resolution of Formation”) establishing CFD No. 4 and Ordinance No. 2677 to levy a special tax sufficient to pay certain costs of Services and Incidental Expenses relating to the maintenance of CFD No. 4. In each fiscal year thereafter, the Government Code requires the City Council to adopt a resolution levying the special tax rate for that fiscal year.

Special Districts staff and representatives from CFD No. 4 met in March and April 2023 and discussed various services, improvements, and costs that were requested by the property owners. These items included enhanced services from the Oxnard Police Department, on-call services such as fence repair, irrigation repair, electrical repair, storm drain filters, water quality remediation, tree trimming, replanting landscapes, installing mulch, and an updated on-site reserve study. The community also discussed options for the special tax levy credit and is requesting a $200,000 levy credit for FY 2023-24.

While the estimated FY 2023-24 maximum special tax for CFD No. 4 is $1,371,648.22 (which includes an allowable 2% CPI adjustment per the RMA), the applied special tax is recommended to be $1,172,111. This represents 85.45% of the maximum special tax for FY 2023-24.

CFD No. 5 Special Tax

On September 13, 2005, City Council adopted Resolution No. 12,936 (the “Resolution of Formation”) establishing CFD No. 5. On September 20, 2005, City Council adopted Ordinance No. 2701 to levy a special tax sufficient to pay the costs of the services, improvements, and incidental expenses set forth in Exhibit A attached to the Resolution of Formation and defined therein. Thereafter, in each fiscal year, the Government Code requires the City Council to adopt a resolution levying a special tax rate for that fiscal year.

CFD No. 5 is authorized to pay for any and all types of services authorized pursuant to Government Code Section 53313, which includes the following:
• Maintenance of parks, parkways, and open space
• Recreation program services, library services, maintenance services for elementary and secondary school sites and structures, and the operation and maintenance of museums and cultural facilities • Flood and storm protection services
• Ongoing administrative fees
• Police protection services
• Local park, recreation, parkway, and open-space facilities

Although these are authorized services for CFD No. 5, not all services are included based on the discussions with the community at the annual budget meetings.

The Resolution of Formation authorizes annual adjustments to the maximum special tax rates based upon the Consumer Price Index (CPI) with a floor of 2% and a cap of 5% annually.

With the exception of the Undeveloped Property land use classification, there is an increase in the tax rate of 2% for FY 2023-24, which is consistent with prior years’ increases pursuant to the requirements contained in the rate and method of apportionment (“RMA”) for CFD No. 5. Pursuant to the special tax formula in the RMA, developed property is first levied up to 100% of their maximum special tax to meet the annual special tax requirement. If additional funds are needed, then the undeveloped property is levied up to 100% of its 54 maximum special tax to meet the remainder of the annual special tax requirement.

Special Districts staff and representatives from CFD No. 5 met in February, March, and April 2023 and discussed various services, improvements, and estimated expenses requested by the community. These items included on-call services such as fence repair, irrigation repair, electrical repair, storm drain filters, water quality remediation, tree trimming, replanting landscapes, installing mulch, and an updated on-site reserve study. The community also discussed options for the special tax levy credit and is requesting a $721,765 levy credit for FY 2023-24.

While the estimated FY 2023-24 maximum special tax for CFD No. 5 is $6,433,426.97 (which includes an allowable 4.93% CPI adjustment per the RMA), the applied special tax is recommended to be $3,265,723. This represents 50.76% of the maximum special tax for FY 2023-24.

CFD No. 2000-3 Special Tax

On July 24, 2001, City Council adopted Resolution No. 12,019 authorizing bonded indebtedness for CFD No. 2000-3 in the amount not to exceed $15,000,000 to be paid by the levy of a special tax. Government Code Section 53340 requires that, prior to the first time the special tax is levied, the City Council adopts an ordinance setting the special tax rate (which states the maximum rate approved by the voters in the CFD at the time of formation). Thereafter, in each fiscal year, the Government Code requires the City Council to adopt a resolution levying a special tax rate for that fiscal year. The special tax rate set by resolution each year may be less than the maximum rate set by the ordinance. On April 17, 2001, the City Council adopted Ordinance No. 2570 setting the special tax rate for CFD No. 2000-3.

The attached resolution sets the special tax rate for FY 2023-24 for CFD No. 2000-3. The special tax is used to pay for debt service on the CFD No. 2000-3 bonds and to pay for expenses related to the administration of the district. The estimated FY 2023-24 maximum special tax for CFD No. 2000-3 is $921,278.27 and staff anticipate a special tax of $569,997.

The reserve fund will be credited to property owners in the final year of the bonds, to the extent available. The remaining balance of the bonds after the September 1, 2023 debt service payment is $4,365,000 with the final payment due on September 1, 2032.

Billing of Direct Assessments

The attached Agreement for Billing of Direct Assessments is an agreement required by the County of Ventura for a continuation of services related to the inclusion of the City’s special taxes and special assessments on the Ventura County tax bills. In the absence of this arrangement, the City would have to bill property owners directly for special taxes/assessments. This agreement is applicable to all assessment districts, Community Facilities Districts and other special assessments administered by the City.

STRATEGIC PRIORITIES

This agenda item is a routine operational item or does not relate to the five strategic priorities adopted by City Council on March 16, 2021.

FINANCIAL IMPACT

The special tax total and amounts for FY 2023-24 are based on the preliminary property data available by the County of Ventura at the time of writing this report. Should parcel changes occur on the Ventura County Assessor’s Secured January 2023 Lien Date Roll, upon release, the special tax amounts will be modified to include the Assessor’s changes.
55 CFD 1 and 2:

There will be no cost to the City’s General Fund from the approval of the resolutions levying the special taxes for CFD No. 1 and CFD No. 2 for FY 2023-24. Debt service costs and all administrative costs are included in the amount to be collected by the special taxes, which are levied against properties located within CFD No. 1 and CFD No. 2.

CFD 3 and 4:

There will be no cost to the City’s General Fund from the approval of the resolutions levying the special taxes for CFD No. 3 and CFD No. 4 for FY 2023-24. Debt service costs and all administrative costs are included in the amount to be collected by the special taxes, which are levied against properties located within CFD No. 3 and CFD No. 4.

CFD 5:

There will be no cost to the City’s General Fund from the approval of the resolution levying the special taxes for CFD No. 5 for FY 2023-24. All maintenance, service, and administrative costs are included in the amount to be collected by the special taxes, which are levied on properties located within CFD No. 5.

CFD 2000-3:

There will be no cost to the General Fund from the approval of the resolution levying the special taxes for CFD No. 2000-3. Debt service costs and all administrative costs are included in the amount to be collected by the special taxes which are levied against properties located within CFD No. 2000-3.

Prepared by: Steve Howlett, Assistant Public Works Director

ATTACHMENTS

1. Resolution Authorizing Levy of Special Tax CFD 1 FY 23-24

2. Resolution Authorizing Levy of Special Tax CFD 2 FY 23-24

3. Resolution Authorizing Levy of Special Tax CFD 3 FY 23-24

4. Resolution Authorizing Levy of Special Tax CFD 4 FY 23-24

5. Resolution Authorizing Levy of Special Tax CFD 5 FY 23-24

6. Agreement for Billing of Direct Assessments

7. Resolution Authorizing Levy of Special Tax 2000-3 FY 23-24

8. City of Oxnard Special Districts Map

9. City of Oxnard Special Districts List

10. Presentation

56 CITY COUNCIL OF THE CITY OF OXNARD
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OXNARD ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 1 (WESTPORT AT MANDALAY BAY) OF THE CITY OF OXNARD

AUTHORIZING THE LEVY OF SPECIAL TAXES WITHIN COMMUNITY
FACILITIES DISTRICT NO. 1 (WESTPORT AT MANDALAY BAY) FOR THE FISCAL YEAR 2023-24
WHEREAS, the City Council of the City of Oxnard (the “City”) previously established Community Facilities District No. 1 (Westport at Mandalay Bay) of the City of Oxnard (“CFD No. 1”) pursuant to the terms and provisions of the MelloRoos Community Facilities Act of 1982, as amended, commencing with Government Code Section 53311 (the “Act”); and WHEREAS, the City Council of the City, acting as the legislative body of CFD No. 1, is authorized pursuant to Resolution No. 11,823 (the “Resolution of Formation”) and Resolution No. 12,082, establishing a Revised Rate and Method as described in Resolution No. 12,082, and Ordinance No. 2541 adopted by the City Council on October 24, 2000, as amended by Ordinance No. 2591 adopted on February 5, 2002 (the “Ordinance”), to levy a special tax sufficient to pay certain costs of the Services and Incidental Expenses (as defined in the Resolution of Formation); and WHEREAS, it is now necessary and appropriate that this City Council levy and collect the special taxes for the Fiscal Year 2023-24 for the purpose specified in the Resolution of Formation and the Ordinance, by the adoption of a resolution as specified by the Act and the Ordinance; and WHEREAS, the assessments are in conformance with Proposition 218; and WHEREAS, the special taxes being levied hereunder are at the same rate or at a lower rate than provided by the Ordinance;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF OXNARD, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 1 (WESTPORT AT MANDALAY BAY), DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. The above recitals are true and correct.

SECTION 2. The special tax is imposed without regard to property valuation and is levied in compliance with the Act and the Ordinance.

SECTION 3. In accordance with the Act and the Ordinance, there is hereby levied upon the parcels within the District which are not otherwise exempt from taxation under the Act or the Ordinance special taxes for the Fiscal Year 2023-24 at the special tax rates set forth in the report prepared by NBS Government Finance Group for CFD No. 1 entitled “City of Oxnard Community Facilities District No. 1 (Westport at Mandalay Bay) Fiscal Year 2023-24 Levy” (the “Report”), attached hereto as Exhibit A and made a part hereof, which special tax rates do not exceed the maximum 57 Resolution No.

Resolution Authorizing Levy of Special Tax CFD-1 FY23-24

Page 2 ends

special tax rates set forth in the Ordinance. After adoption of this Resolution, the Chief Financial Officer of the City, or his or her designee, may make any necessary modifications to these special taxes to correct any errors, omissions or inconsistencies in the listing or categorization of parcels to be taxed or in the amount to be charged to any category of parcels; provided, however, that any such modifications shall not result in an increase in the special tax applicable to any category of parcels and is made prior to the submission of the tax rolls to the Ventura County Auditor.

SECTION 4. All of the collections of the special tax shall be used only as provided for in the Act and the Resolution of Formation. The special tax shall be levied only so long as needed to accomplish the purposes described in the Resolution of Formation.

SECTION 6. The Chief Financial Officer is hereby authorized and directed to transmit a certified copy of this Resolution and the Report to the Ventura County Auditor, together with other supporting documentation as may be required to place said special taxes on the secured property tax roll for the Fiscal Year 2023-24, and to perform all other acts which are required by the Act, the Ordinance, or by law in order to accomplish the purpose of this Resolution.

PASSED, APPROVED AND ADOPTED on this ____ day of JUNE, 2023 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________________
John Zaragoza, Mayor

ATTEST:

________________________________
Rose Chaparro, City Clerk

58 Resolution No.

Resolution Authorizing Levy of Special Tax CFD-1 FY23-24

Page 3 ends

APPROVED AS TO FORM:

________________________________
Stephen M. Fischer, City Attorney
59 CITY COUNCIL OF THE CITY OF OXNARD
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OXNARD ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2 (WESTPORT AT MANDALAY BAY) OF THE CITY OF OXNARD

AUTHORIZING THE LEVY OF SPECIAL TAXES WITHIN COMMUNITY
FACILITIES DISTRICT NO. 2 (WESTPORT AT MANDALAY BAY) FOR THE FISCAL YEAR 2023-24
WHEREAS, the City Council of the City of Oxnard (the “City”) previously established Community Facilities District No. 2 (Westport at Mandalay Bay) of the City of Oxnard (“CFD No. 2”) pursuant to the terms and provisions of the MelloRoos Community Facilities Act of 1982, as amended, commencing with Government Code Section 53311 (the “Act”); and WHEREAS, the City Council of the City, acting as the legislative body of CFD No. 2, is authorized pursuant to Resolution No. 11,825 (the “Resolution of Formation”) and Resolution No. 12,082, establishing a Revised Rate and Method as described in Resolution No. 12,082, and Ordinance No. 2542 adopted by the City Council on October 24, 2000, as amended by Ordinance No. 2592 adopted on February 5, 2002 (the “Ordinance”), to levy a special tax sufficient to pay certain costs of the Services and Incidental Expenses (as defined in the Resolution of Formation); and WHEREAS, it is now necessary and appropriate that this City Council levy and collect the special taxes for the Fiscal Year 2023-24 for the purpose specified in the Resolution of Formation and the Ordinance, by the adoption of a resolution as specified by the Act and the Ordinance; and WHEREAS, the assessments are in conformance with Proposition 218; and WHEREAS, the special taxes being levied hereunder are at the same rate or at a lower rate than provided by the Ordinance;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF OXNARD, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2 (WESTPORT AT MANDALAY BAY), DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. The above recitals are true and correct.

SECTION 2. The special tax is imposed without regard to property valuation and is levied in compliance with the Act and the Ordinance.

SECTION 3. In accordance with the Act and the Ordinance, there is hereby levied upon the parcels within CFD No. 2 which are not otherwise exempt from taxation under the Act or the Ordinance special taxes for the Fiscal Year 2023-24 at the special tax rates set forth in the report prepared by NBS Government Finance Group for CFD No. 2 entitled “City of Oxnard Community Facilities District No. 2 (Westport at Mandalay Bay) Fiscal Year 2023-24 Levy” (the “Report”), attached 60 Resolution No.

Resolution Authorizing Levy of Special Tax CFD-2 FY23-24

Page 2 ends

hereto as Exhibit A and made a part hereof, which special tax rates do not exceed the maximum special tax rates set forth in the Ordinance. After adoption of this Resolution, the Chief Financial Officer of the City, or designee, may make any necessary modifications to these special taxes to correct any errors, omissions or inconsistencies in the listing or categorization of parcels to be taxed or in the amount to be charged to any category of parcels; provided, however, that any such modifications shall not result in an increase in the special tax applicable to any category of parcels and is made prior to the submission of the tax rolls to the Ventura County Auditor.

PASSED, APPROVED AND ADOPTED on this ____ day of JUNE, 2023 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________________
John Zaragoza, Mayor

ATTEST:

________________________________
Rose Chaparro, City Clerk

61 Resolution No.

Resolution Authorizing Levy of Special Tax CFD-2 FY23-24

Page 3 ends

APPROVED AS TO FORM:

________________________________
Stephen M. Fischer, City Attorney
62 CITY COUNCIL OF THE CITY OF OXNARD
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OXNARD ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 3 (SEABRIDGE AT MANDALAY BAY) OF THE CITY OF OXNARD

AUTHORIZING THE LEVY OF SPECIAL TAXES WITHIN COMMUNITY
FACILITIES DISTRICT NO. 3 (SEABRIDGE AT MANDALAY BAY) FOR THE FISCAL YEAR 2023-24
WHEREAS, the City Council of the City of Oxnard (the “City”) previously established Community Facilities District No. 3 (Seabridge at Mandalay Bay) of the City of Oxnard (“CFD No. 3”) pursuant to the terms and provisions of the MelloRoos Community Facilities Act of 1982, as amended, commencing with Government Code Section 53311 (the “Act”); and WHEREAS, the City Council of the City, acting as the legislative body of CFD No. 3, is authorized pursuant to Resolution No. 12,737 (the “Resolution of Formation”) and Ordinance No. 2676 adopted by the City Council on December 14, 2004, (the “Ordinance”) to levy a special tax sufficient to pay principal, interest, other periodic costs and administrative expenses with respect to bonds of CFD No. 3 (the “Bonds”) and to pay certain costs of the Public Improvements and Incidental Expenses (as defined in the Resolution of Formation); and
WHEREAS, it is now necessary and appropriate that this City Council provide for the levy and collection of the special taxes for the Fiscal Year 2023-24 for the purpose specified in the Resolution of Formation and the Ordinance, by the adoption of a resolution as specified by the Act and the Ordinance; and
WHEREAS, the assessments are in conformance with Proposition 218; and WHEREAS, the special taxes being levied hereunder are at the same rate or at a lower rate than provided by the Ordinance;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF OXNARD, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 3 (SEABRIDGE AT MANDALAY BAY), DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. The above recitals are true and correct.

SECTION 2. The special tax is imposed without regard to property valuation and is levied in compliance with the Act and the Ordinance.

Resolution Authorizing Levy of Special Tax CFD-3 FY23-24

Page 2 ends

2 No. 3 (Seabridge at Mandalay Bay) Fiscal Year 2023-24 Levy” (the “Report”) attached hereto as Exhibit A and made a part hereof, which special tax rates do not exceed the maximum special tax rates set forth in the Ordinance. After adoption of this Resolution, the Chief Financial Officer of the City, or designee, may make any necessary modifications to these special taxes to correct any errors, omissions or inconsistencies in the listing or categorization of parcels to be taxes or in the amount to be charged to any category of parcels; provided, however, that any such modifications shall not result in an increase in the special tax applicable to any category of parcels and is made prior to the submission of the tax rolls to the Ventura County Auditor.

SECTION 5. The special tax shall be collected in the same manner as ordinary ad valorem taxes are collected and shall be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for ad valorem taxes except as such procedure has been modified by law and this City Council as set forth in the Indenture Between CFD No. 3 and Wells Fargo Bank, National Association, as Fiscal Agent dated as of October 1, 2005.

SECTION 6. As a cumulative remedy, if any amount levied as a special tax for payment of bond interest or principal, together with any penalties and other charges accruing under this Resolution, are not paid when due, the City Council may, not later than four years after the due date of the last installment of principal on the Bonds, order that the same be collected by an action brought in the superior court to foreclose the lien of such special tax.

SECTION 7. The Chief Financial Officer is hereby authorized and directed to transmit a certified copy of this Resolution and the Report to the Ventura County Auditor, together with other supporting documentation as may be required to place said special taxes on the secured property tax roll for the Fiscal Year 2023-24, and to perform all other acts which are required by the Act, the Ordinance, or by law in order to accomplish the purpose of this Resolution.

PASSED, APPROVED AND ADOPTED on this ____ day of JUNE, 2023 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________________
John Zaragoza, Mayor
64 Resolution No.

Resolution Authorizing Levy of Special Tax CFD-3 FY23-24

Page 3 ends

3 ATTEST:

________________________________
Rose Chaparro, City Clerk

APPROVED AS TO FORM:

________________________________
Stephen M. Fischer, City Attorney
65 66

CITY COUNCIL OF THE CITY OF OXNARD
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OXNARD ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 4 (SEABRIDGE AT MANDALAY BAY) OF THE CITY OF OXNARD

AUTHORIZING THE LEVY OF SPECIAL TAXES WITHIN COMMUNITY
FACILITIES DISTRICT NO. 4 (SEABRIDGE AT MANDALAY BAY) FOR THE FISCAL YEAR 2023-24
WHEREAS, the City Council of the City of Oxnard (the “City”) previously established Community Facilities District No. 4 (Seabridge at Mandalay Bay) of the City of Oxnard (“CFD No. 4”) pursuant to the terms and provisions of the MelloRoos Community Facilities Act of 1982, as amended, commencing with Government Code Section 53311 (the “Act”); and WHEREAS, the City Council of the City, acting as the legislative body of CFD No. 4, is authorized pursuant to Resolution No. 12,739 (the “Resolution of Formation”) and Ordinance No. 2677 adopted by the City Council on December 14, 2004, (the “Ordinance”), as amended by Resolution No. 15,104 adopted on April 3, 2018 (the “Resolution Reducing the Maximum Special Tax” to levy a special tax sufficient to pay certain costs of the Services and Incidental Expenses (as defined in the Resolution of Formation); and
WHEREAS, it is now necessary and appropriate that this City Council provide for the levy and collection of the special taxes for the Fiscal Year 2023-24 for the purpose specified in the Resolution of Formation and the Ordinance, by the adoption of a resolution as specified by the Act and the Ordinance; and
WHEREAS, the assessments are in conformance with Proposition 218; and WHEREAS, the special taxes being levied hereunder are at the same rate or at a lower rate than provided by the Resolution Reducing the Maximum Special Tax;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF OXNARD, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 4 (SEABRIDGE AT MANDALAY BAY), DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. The above recitals are true and correct.

SECTION 2. The special tax is imposed without regard to property valuation and is levied in compliance with the Act and the Ordinance.

Resolution Authorizing Levy of Special Tax CFD-4 FY23-24

Page 2 ends

No. 4 (Seabridge at Mandalay Bay) Fiscal Year 2023-24 Levy” (the “Report”) attached hereto as Exhibit A and made a part hereof, which special tax rates do not exceed the maximum special tax rates set forth in the Ordinance. After adoption of this Resolution, the Chief Financial Officer of the City, or designee, may make any necessary modifications to these special taxes to correct any errors, omissions or inconsistencies in the listing or categorization of parcels to be taxes or in the amount to be charged to any category of parcels; provided, however, that any such modifications shall not result in an increase in the special tax applicable to any category of parcels and is made prior to the submission of the tax rolls to the Ventura County Auditor.

PASSED, APPROVED AND ADOPTED on this ____ day of JUNE, 2023 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________________
John Zaragoza, Mayor

ATTEST:

________________________________
Rose Chaparro, City Clerk
68 Resolution No.

Resolution Authorizing Levy of Special Tax CFD-4 FY23-24

Page 3 ends

APPROVED AS TO FORM:

________________________________
Stephen M. Fischer, City Attorney
69 CITY COUNCIL OF THE CITY OF OXNARD
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OXNARD ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 5 (RIVERPARK) OF THE CITY OF OXNARD AUTHORIZING THE LEVY OF SPECIAL TAXES WITHIN COMMUNITY FACILITIES DISTRICT NO. 5 (RIVERPARK) FOR THE FISCAL YEAR 2023-24
WHEREAS, the City Council of the City of Oxnard (the “City”) previously established Community Facilities District No. 5 (Riverpark) of the City of Oxnard (“CFD No. 5”) pursuant to the terms and provisions of the MelloRoos Community Facilities Act of 1982, as amended, commencing with Government Code Section 53311 (the “Act”); and
WHEREAS, this City Council of the City (this “City Council”), acting as the legislative body of CFD No. 5, is authorized pursuant to Resolution No. 12,936, adopted by this City Council on September 13, 2005 (the “Resolution of Formation”), and Ordinance No. 2701, adopted by this City Council on September 20, 2005 (the “Ordinance”), to levy a special tax sufficient to pay costs of the Services, Improvements, and Incidental Expenses set forth in Exhibit A attached to the Resolution of Formation in accordance with the provisions of the Rate and Method of Apportionment for City of Oxnard Community Facilities District No. 5 (Riverpark) (the “Rate and Method”), a copy of which is attached to the Resolution of Formation as Exhibit B; and
WHEREAS, it is now necessary and appropriate that this City Council, acting as the legislative body of CFD No. 5, levy and collect the special taxes for Fiscal Year 2023-24 for the purposes specified in the Resolution of Formation and the Ordinance, by the adoption of a resolution as specified by the Act and the Ordinance; and
WHEREAS, the assessments are in conformance with Proposition 218; and WHEREAS, the special taxes being levied hereunder are at the same rate or at a lower rate than provided by the Ordinance;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF OXNARD, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 5 (RIVERPARK), DOES HEREBY FIND, RESOLVE, DETERMINE, AND ORDER AS FOLLOWS:

SECTION 1. The foregoing recitals, and each of them, are true and correct.

SECTION 2. The special tax is imposed without regard to property valuation and is levied in compliance with the Act and the Ordinance.

SECTION 3. In accordance with the Act, the Ordinance, and the Rate and Method, there is hereby levied upon the parcels within CFD No. 5 that are not otherwise exempt from taxation under the Act or the Ordinance special taxes for the Fiscal Year 2023-24 at the special tax rates set forth in the exhibit entitled “City of Oxnard Community Facilities District No. 5 (Riverpark) Fiscal Year 70 Resolution No.

Resolution Authorizing Levy of Special Special Tax CFD-5 FY23-24

Page 2 ends

2023-24 Levy”, attached hereto as Exhibit A and made a part hereof by this reference, which special tax rates do not exceed the maximum special tax rates set forth in the Ordinance and the Rate and Method. After adoption of this Resolution, the Chief Financial Officer of the City, or his or her designee, may make any necessary modifications to these special taxes to correct any errors, omissions, or inconsistencies in the listing or categorization of parcels to be taxed or in the amount to be charged to any category of parcels; provided, however, that any such modifications shall not result in an increase in the special tax applicable to any category of parcels and is made prior to the submission of the tax rolls to the Ventura County Auditor.

SECTION 6. The Chief Financial Officer is hereby authorized and directed to transmit a certified copy of this Resolution and Exhibit A to the Ventura County Auditor, together with other supporting documentation as may be required to place said special taxes on the secured property tax roll for the Fiscal Year 2023-24, and to perform all other acts that are required by the Act, the Ordinance, the Rate and Method, or by law in order to accomplish the purpose of this Resolution.

SECTION 7. This Resolution shall take effect from and after its date of adoption.

PASSED, APPROVED AND ADOPTED on this ____ day of JUNE, 2023 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________________
John Zaragoza, Mayor
ATTEST:

________________________________
Rose Chaparro, City Clerk
71 Resolution No.

Resolution Authorizing Levy of Special Special Tax CFD-5 FY23-24

Page 3 ends

APPROVED AS TO FORM:

________________________________
Stephen M. Fischer, City Attorney
72 AGREEMENT FOR BILLING OF DIRECT ASSESSMENTS
This Agreement For Billing of Direct Assessments ("Agreement") is made and entered into between the Ventura County Auditor-Controller and
("Agency") to provide the service of placement of direct assessments on the Secured Tax Roll
and
distribution of collections to the Agency.

I. PROPERTY TAX SERVICES
Ventura County will place direct assessments on the Secured Tax Roll and distribute collections to the Agency at the same time and in the same manner as Ventura County property taxes are collected and distributed, and as authorized by law. The Agency will adhere to the policies and procedures established by the Ventura County Auditor-Controller as outlined in the Direct Assessment Submission Letter.

II. FEES FOR SERVICES
For billing, collection, correction and administration of direct assessments, the Ventura County Auditor-Controller shall collect the following charges:

A. A Direct Assessment Line Fee for the original submission will be charged an amount per assessment per parcel that is set by the County via resolution by the Board of Supervisors at its annual Countywide Rates and Fees public hearing.

B. For correction or removal of direct assessments requested by the Agency after extension of the tax roll, the Ventura County Auditor-Controller will collect $23.00 per correction or removal. All corrections and removals must be submitted by the third Friday in February.

C. An Administration and collection fee shall be charged in an amount not to exceed one- fourth of 1 percent of amounts collected.

D. Collection fees and charges herein provided are subject to adjustment by the County via resolution of the Board of Supervisors at its annual Countywide Rates and Fees public hearing. The Ventura County Auditor-Controller reserves the right to increase or v.2020 Agreement for billing of direct assessments
Attachment B

Page 1 ends

73 decrease any charges herein provided, in proportion to any changes in costs incurred by the Auditor-Controller in providing the services described herein, provided that written notice of any increase or decrease in charges is given to the Agency.

III. COLLECTION OF AUDITOR-CONTROLLER FEES
Direct Assessment billing, correction and removal charges are deducted once a year, in the April Secured Apportionment. Collection and administrative fees are deducted from each Apportionment distribution.

IV. REQUESTS FOR INFORMATION AND ACCOUNTING SERVICES
The Ventura County Auditor-Controller publishes a report of direct assessments levied for the tax year by parcel to the Auditor -Controller's website in January, May and July. Requests for information and accounting services beyond what is posted to the Website will be considered extended services and will be subject to additional charges and fees. v. AUTHORITY FOR LEVY AND COMPLIANCE WITH LAW
The authority for any levy, (i.e. resolution, ordinance or election), shall accompany requests for the levy of direct assessments. The Agency warrants that the taxes, fees, or assessments imposed by the Agency and collected pursuant to this Agreement comply with all requirements of state law, including but not limited to Articles XII IC and XIIID of the California Constitution (Proposition 218).

The Agency hereby releases and forever discharges Ventura County and its officials, officers, agents, representatives and employees from any and all claims, demands, liabilities, costs and expenses, damages, causes of action, and judgments, in any manner arising out of the Agency's responsibilities and representations under this Agreement or other action taken by the Agency in establishing a special tax, fee, or assessment and implementing colle ction of special taxes, fees, or assessments as contemplated in and/or pursuant to this Agreement, including disputes related to lien priority.

The Agency further agrees to and shall defend, indemnify and hold harmless Ventura County and its officials, off icers, agents, representatives and employees (“indemnified parties”) from any and all claims, demands, liabilities, costs and expenses, damages, causes of action and judgments, in any manner arising out of any of the Agency's responsibilities and representations under this Agreement, or other action taken by the Agency in establishing a special tax, fee, or assessment and implementing collection of special taxes, fees, or assessments as contemplated in and/or pursuant to this Agreement, including disputes related to lien priority.
v.2020 Agreement for billing of direct assessments
Attachment B

Page 2 ends

74 If any judgement is entered against any indemnified party as a result of action taken to implement this Agreement, the Agency agrees that Ventura County may offset the amount of any judgement paid by any indemnified party from any monies collected by Ventura County on the Agency's behalf, including property taxes, special taxes, fees, or assessments. Ventura County may, but is not required to, notify the Agency of its intent to implement any offset authorized by this paragraph.

VI. TERMS OF AGREEMENT
Upon execution, this Agreement terminates, supersedes and replaces all prior agreements between Ventura County Auditor-Controller and the Agency pertaining to the collection of direct assessments. This Agreement shall continue from year to year and shall be subject to cancellation by either party by giving a thirty-day written notice of cancellation to the other party.

VII. AUTHORITY
The above terms are accepted by the Agency and the undersigned further certifies that he/she is authorized to sign this Agreement and bind the Agency to its terms.

Authorized Signature: Date:

Authorized Name:
(PRINT)
Title:
(PRINT TITLE)
For Auditor-Controller Use Only
Approved Signature: Date:

SECTION MANAGER
Approved Name:
(PRINT)
v.2020 Agreement for billing of direct assessments
Attachment B

Page 3 ends

75 CITY COUNCIL OF THE CITY OF OXNARD
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OXNARD,

ACTING AS LEGISLATIVE BODY OF COMMUNITY FACILITIES
DISTRICT NO. 2000-3 (OXNARD BOULEVARD/HIGHWAY 101

INTERCHANGE), SETTING THE LEVY OF AN ANNUAL SPECIAL TAX FOR SUCH COMMUNITY FACILITIES DISTRICT FOR FISCAL YEAR 2023- 24 WHEREAS, the CITY COUNCIL of the CITY OF OXNARD, CALIFORNIA (the “City Council”), has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors to authorize the levy of a special tax in a community facilities district, all as authorized pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”) and this Community Facilities District is designated as COMMUNITY FACILITIES DISTRICT NO. 2000-3 (OXNARD BOULEVARD/HIGHWAY 101 INTERCHANGE) (the “District”); and WHEREAS, the City Council, by the adoption of Ordinance No. 2570 (“Ordinance”) as authorized by Section 53340 of the Government Code of the State of California, has authorized the levy of special taxes within the District including the Improvement Areas established within such District to finance authorized services; and
WHEREAS, Government Code Section 53340 provides that the City Council may provide, by resolution, for the levy of special taxes in the current tax year at the same rates or at a lower rate than the rate provided for in the Ordinance levying such special taxes, if such resolution is adopted and a certified list of all parcels subject to the special tax levy including the amount of the special tax to be levied on each parcel for the current tax year (the “Certified Parcel List”) is timely filed by the clerk or other official designated by the City Council with the Auditor of the County of Ventura (the “County Auditor”) on or before August 10th of the applicable tax year; and WHEREAS, the assessments are in conformance with Proposition 218; and WHEREAS, the City’s Chief Financial Officer has prepared or caused to be prepared a Certified Parcel List;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Oxnard, acting as the legislative body of Community Facilities District No. 2000-3 (Oxnard Boulevard/Highway 101 Interchange), as follows:

SECTION 1. The above recitals are all true and correct.

SECTION 2. In accordance with the Act and the Ordinance, there is hereby levied upon the parcels within the District which are not otherwise exempt from taxation under the Act or the Ordinance special taxes for the Fiscal Year 2023-24 at the special tax rates set forth in the report prepared by NBS Government Finance Group entitled “City of Oxnard Community Facilities 76 Resolution No.

Resolution Authorizing Levy of Special Tax 2000-3 FY23-24

Page 2 ends

District No. 2000-3 (Oxnard Blvd/Highway 101 Interchange) Fiscal Year 2023-24 Levy” (the “Report”) attached hereto as Exhibit A and made a part hereof, which special tax rates do not exceed the maximum special tax rates set forth in the Ordinance. After adoption of this Resolution, the Chief Financial Officer of the City, or designee, may make any necessary modifications to these special taxes to correct any errors, omissions or inconsistencies in the listing or categorization of parcels to be taxes or in the amount to be charged to any category of parcels; provided, however, that any such modifications shall not result in an increase in the special tax applicable to any category of parcels and is made prior to the submission of the tax rolls to the Ventura County Auditor.

SECTION 3. The Chief Financial Officer is hereby authorized and directed to submit the Certified Parcel List to the County Auditor on or before July ____, 2023 or such later date to which the County Auditor may agree.

SECTION 4. The special tax shall be collected in the same manner as ordinary ad valorem property taxes are collected, and shall be subject to the same penalties and same procedure and sale in cases of any delinquency for ad valorem taxes, and the Tax Collector is hereby authorized to deduct reasonable administrative costs incurred in collecting any said special tax. Any special taxes that may not be collected on the County tax roll shall be collected through a direct billing procedure by the Treasurer of the City of Oxnard, acting for and on behalf of the District.

SECTION 5. The County Auditor is hereby directed to enter in the next County assessment roll on which taxes will become due, opposite each lot or parcel of land affected, in a space marked “public improvements, special tax” or by any other suitable designation, the installment of the special tax.

SECTION 6. The County Auditor shall, at the close of the tax collection period, promptly render to the District a detailed report showing the amount and/or amounts of such special tax installments, interest, penalties and percentages so collected and from what property collected, and also provide a statement of any percentages retained for the expense of making any such collection.

SECTION 7. This resolution shall become effective upon its adoption.

PASSED, APPROVED AND ADOPTED on this ____ day of JUNE, 2023 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________________
John Zaragoza, Mayor
77 Resolution No.

Resolution Authorizing Levy of Special Tax 2000-3 FY23-24

Page 3 ends

ATTEST:

________________________________
Rose Chaparro, City Clerk

APPROVED AS TO FORM:

________________________________
Stephen M. Fischer, City Attorney
78 4
9 5
34 7
8 1
2 3 & 4
1 &
2 03
30 14
12 36
43 28
38 31
46 39
13 25
51 52
10 16
47 37
34 42
24 58
41 23
33 11
40 60
27 55
50 4954
32 53
This map is compiled by the City of Oxnard GIS Division, which is developed and operated solely for the convenience of the City. The City does not make any representations or warranties regarding the use, accuracy, reliability, and/or completeness of this map and no decision involving a risk of economic loss or physical injury should be made in reliance thereon. µ Maintenance Assessment District (District No.)
Waterway Assessment District (Zone No.)
Community Facilities District (District No.)
Landscape Maintenance District (District No.)

CITY OF OXNARD SPECIAL DISTRICTS
3,000 0 3,000 6,000
Feet
Created by:

Geographic Information Systems Division
March 2023
Data Source:

City of Oxnard GIS Division
County of Ventura GIS Program
79 1 & 2 – Westport at Mandalay Bay 7 – Wagon Wheel
3 & 4 – Seabridge at Mandalay Bay 8 – Sakioka Farms
5 – Riverpark 9 – Northshore at Mandalay Bay
3 – Riverridge 37 – Pacific Cove
10 – Country Club 38 – Aldea Del Mar
11 – St Tropez 39 – El Sueno Promesa
12 – Standard Pacific 40 – Cantada
13 – Le Village 41 – Pacific Cove
14 – California Cove 42 – Cantabria/Coronado
16 – California Lighthouse 43 – Greenbelt
23 – Greystone 46 – Daily Ranch
24 – Vineyards 47 – Sycamore Place
25 – The Pointe 49 – Cameron Ranch
27 – Rose Island 50 – PV Senior Housing
28 – Harborside 51 – Pfeiler
30 – Haas Automation 52 – Wingfield
31 – Rancho De La Rosa 53 – Huff Court
32 – Oak Park 54 – Meadowcrest
33 – El Paseo 55 – Wingfield West
34 – Sunrise Pt/Sunset Cove 58 – Westwind
36 – Villa Santa Cruz 60 – Artisan
Zone 1 – Mandalay Bay Zone 2 – Harbour Island

MAINTENANCE ASSESSMENT DISTRICT

WATERWAYS ASSESSEMENT DISTRICTS
4 – Mandalay Beach/Colony

LANDSCAPE MAINTENANCE DISTRICTS
CITY OF OXNARD – SPECIAL DISTRICTS
LANDSCAPE MAINTENANCE DISTRICT * COMMUNITY FACILITIES DISTRICTS WATERWAYS ASSESSMENT DISTRICTS * MAINTENANCE ASSESSMENT DISTRICTS

COMMUNITY FACILITIES DISTRICTS
80 Fiscal Year 2023-24 Special Tax Levy for
Community Facilities Districts No. 1, 2, 3, 4, 5,
and 2000-3
Finance and Governance Committee
May 23, 2023
City Council
June 6, 2023
Eric L. Storrie
Special Districts Manager
81 That the Finance and Governance Committee recommend that the City Council acting as the legislative body for Community Facilities Districts (CFD) No. 1, 2, 3, 4, 5 and 2000-3:

1. Adopt a resolution setting a special tax rate within CFD No. 1 (Westport at Mandalay Bay) for Fiscal Year 2023-24;

2. Adopt a resolution setting a special tax rate within CFD No. 2 (Westport at Mandalay Bay) for Fiscal Year 2023-24;

3. Adopt a resolution setting a special tax rate within CFD No. 3 (Seabridge at Mandalay Bay) for Fiscal Year 2023-24;

4. Adopt a resolution setting a special tax rate within CFD No. 4 (Seabridge at Mandalay Bay) for Fiscal Year 2023-24;

RECOMMENDATION
82 That the Finance and Governance Committee recommend that the City Council acting as the legislative body for Community Facilities Districts (CFD) No. 1, 2, 3, 4, 5 and 2000-3:

5. Adopt a resolution setting a special tax rate within CFD No. 5 (Riverpark) for Fiscal Year 2023-24;

6. Adopt a resolution setting a special tax rate within CFD No. 2000-3 (Oxnard Boulevard/Highway 101 Interchange) for Fiscal Year 2023-24; and

RECOMMENDATION
83 4

MAP OF SPECIAL DISTRICTS IN CITY
Additional information can be found at: oxnard.org/city-department/publicworks 84 ADOPTION OF RESOLUTION FOR LEVY
COMMUNITY FACILITIES DISTRICTS 1 & 2 –

WESTPORT AT MANDALAY BAY
85 CFD No. 1 Special Tax
• CFD No. 1 was created and approved to levy a special tax sufficient to pay principal, interest, other periodic costs and administrative expenses for the construction of Westport. • Government Code requires the City Council to adopt a resolution levying the special tax rate for that fiscal year.
• The estimated FY23-24 maximum special tax for CFD No. 1 is $975,295.08 and staff anticipate a special tax of $700,009. • Remaining balance of the bonds is $5,730,000 with the final payment due on September 1, 2033.

BACKGROUND
86 CFD No. 2 Special Tax
• CFD No. 2 was created and approved to levy a special tax sufficient to pay costs of the services and incidental
expenses relating to the maintenance of Westport at
Mandalay Bay.

BACKGROUND
87 CFD No. 1 Special Tax
• The estimated maximum special tax rate in FY2023-24 is $975,295.08 and an applied special tax of $697,414
CFD No. 2 Special Tax
• The estimated maximum special tax for FY2023-24 is
$856,381.60
• The applied special tax is $559,848
• CFD No. 2 is requesting a $400,000 special tax levy credit • Staff have met with the community in February and March to discuss wanted improvements and services.

DISCUSSION
88 • There will be no cost to the City’s General Fund from approval of the resolutions levying the special taxes for CFD No. 1 and CFD No. 2 for FY 2023-24.
• Debt service costs and all administrative costs are
included in the amount to be collected by the special taxes, which are levied against properties located in CFD No. 1 and CFD No. 2

FINANCIAL IMPACT
89 ADOPTION OF RESOLUTION FOR LEVY
COMMUNITY FACILITIES DISTRICTS 3 & 4 –

SEABRIDGE AT MANDALAY BAY
90 CFD No. 3 Special Tax
• In December 2004, City Council established CFD No. 3 and Ordinance No. 2676 to levy a special tax sufficient to pay principal, interest, and other periodic costs and administrative expenses with respect to the bonds.
• The remaining balance of the bonds is $18,820,000 with the final payment due on September 1, 2035.
• On November 6, 2018, voters within Seabridge at Mandalay Bay approved Measure H which limited the amount of CFD No. 3 special tax revenue used to pay overhead costs of City employees to $5,000 annually. The FY2023-24 City overhead costs is equal to $5,000.

BACKGROUND
91 CFD No. 4 Special Tax
• In December 2004, City Council established CFD No. 4 to levy a special tax sufficient to pay certain costs of Services and Incidental Expenses relating to the maintenance of Seabridge at Mandalay Bay
• On November 6, 2018, voters within Seabridge at Mandalay Bay approved Measures F and I
• Measure F amended the maximum special tax rates plus the approved annual escalation factor of 2%
• Measure I reduced the CFD No. 4 special taxes for harbor patrol costs to $192,000 annually

BACKGROUND
92 CFD No. 3 Special Tax
• The estimated maximum special tax rate in FY2023-24 is $3,104,488.50 and an applied special tax of $1,783,572
CFD No. 4 Special Tax
• The estimated maximum special tax for FY2023-24 is
$1,371,648.22
• The applied special tax is $1,172,111
• CFD No. 4 is requesting a $200,000 special tax levy credit • Staff have met with the community in March and April to discuss wanted improvements and services.

DISCUSSION
93 • There will be no cost to the City’s General Fund from approval of the resolutions levying the special taxes for CFD No. 3 and CFD No. 4 for FY 2023-24.
• Debt service costs and all administrative costs are
included in the amount to be collected by the special taxes, which are levied against properties located in CFD No. 3 and CFD No. 4

FINANCIAL IMPACT
94 ADOPTION OF RESOLUTION FOR LEVY
COMMUNITY FACILITIES DISTRICT 5 –

RIVERPARK
95 • In September 2005, City Council established CFD No. 5, levying a special tax sufficient to pay costs of the Services, Improvements, and Incidental Expenses set forth by the
Resolution of Formation

BACKGROUND
96 CFD No. 5 Special Tax
• The estimated maximum special tax for FY2023-24 is
$6,433,426.97
• The applied special tax is $3,265,723
• CFD No. 5 is requesting a $721,765 special tax levy credit • Staff have met with the community in February, March, and April to discuss wanted improvements and services.

DISCUSSION
97 • No cost to the City’s General Fund from approval of the resolution levying the special taxes for CFD No. 5 for FY 2023-24
• All maintenance, service, and administrative costs are included in the amount to be collected by the special taxes, which are levied on properties located in CFD No. 5

FINANCIAL IMPACT
98 ADOPTION OF RESOLUTION FOR LEVY
CFD 2000-3 OXNARD BLVD./HIGHWAY 101

INTERCHANGE
99 • In July 2001, City Council authorized bonded indebtedness for CFD No. 2000-3 in the amount not to exceed
$15,000,000 to be paid by the levy of a special tax

BACKGROUND
20 100
• The estimated maximum special tax rate in FY2023-24 is $921,278.27 and an applied special tax of $569,997.00
• Remaining balance of the bond is $4,365,000 with the final payment due on September 1, 2032.

DISCUSSION
21 101
• There will be no cost to the City’s General Fund from the approval of the resolution levying the special taxes for CFD No. 2000-3
• Debt service costs and all administrative costs are incurred in the amount to be collected by the special taxes which are levied against the properties located in CFD No. 2000-3

FINANCIAL IMPACT
22 102
Recommended action items:

1. Adopt a resolution setting a special tax rate within CFD No. 1 (Westport at Mandalay Bay) for Fiscal Year 2023-24;

2. Adopt a resolution setting a special tax rate within CFD No. 2 (Westport at Mandalay Bay) for Fiscal Year 2023-24;

3. Adopt a resolution setting a special tax rate within CFD No. 3 (Seabridge at Mandalay Bay) for Fiscal Year 2023-24;

4. Adopt a resolution setting a special tax rate within CFD No. 4 (Seabridge at Mandalay Bay) for Fiscal Year 2023-24;

RECOMMENDATION
103
Recommended action items:

5. Adopt a resolution setting a special tax rate within CFD No. 5 (Riverpark) for Fiscal Year 2023-24;

6. Adopt a resolution setting a special tax rate within CFD No. 2000-3 (Oxnard Boulevard/Highway 101 Interchange) for Fiscal Year 2023-24; and

RECOMMENDATION
104
QUESTIONS?
105

FINANCE AND GOVERNANCE COMMITTEE

AGENDA REPORT

REPORTS
AGENDA ITEM NO. D.3

DATE: May 23, 2023

TO: Finance & Governance Committee

FROM: Michael Wolfe, Public Works Director, (805) 385-8055, [email protected]

SUBJECT: Fiscal Year 2022-23 Budget Appropriation for Community Facilities District Number 7, Wagon Wheel. (10 minutes)

RECOMMENDATION

That the Finance and Governance Committee recommend that the City Council approve a Fiscal Year 2022-23 budget appropriation from the available fund balance in the amount of $100,399 to the Special Districts Fund (120) for reimbursement of Fiscal Year 2022-23 authorized Developer reimbursements from the Wagon Wheel Community Facilities District.

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/XAKWiPrtoJA

BACKGROUND

On October 6, 2020, the City of Oxnard (“City”) and Oakwood Communities LLC (“Developer”) on behalf of the Wagon Wheel Master Association entered into a Reimbursement Agreement (A-8239) to fund the maintenance of Community Facility District (“CFD”) areas of responsibility via the Master Homeowners Association (“HOA”). As a part of this agreement, the Developer was obligated to advance the funding necessary to maintain CFD areas for 24 months starting from the beginning of the term of the agreement. These expenses are reimbursable under the Agreement and the Developer has submitted their first request for reimbursement to City staff. The Master HOA is required by this agreement to submit a Forecast Annual Maintenance Cost Form to City staff in May of each year, which would typically include this expected reimbursement amount. However, the HOA did not submit this Form after multiple requests from staff due to their unfamiliarity with the process and the fact that this was the first year the HOA had been requested to provide this documentation. Prior to the HOA being formed, there was $54,400 budgeted for reimbursements.

This amount has been carried forward and will be applied to this reimbursement request.

DISCUSSION

The young age of the Wagon Wheel CFD and unique process by which these CFD areas are maintained has meant that this reimbursement will be the first of a continued and regular reimbursement cycle for maintenance expenses. As stated in Section 8 of the Reimbursement Agreement, the HOA is restricted from making claims for reimbursements that are in excess of their forecasted expenses, or in excess of the CFDs revenues. This limits what can be claimed for reimbursement to only that which is forecasted in the annual cost summary and is to be submitted by the HOA each year.

106
City staff has been working closely with the Developer and Master HOA to verify maintenance expenses incurred by the Master HOA between October 2020 and June 2022. Section 2 of the Reimbursement Agreement states that the Master HOA is responsible for submitting forecasted annual maintenance expenses for CFD areas which the Master HOA maintains on behalf of the CFD. As the Master HOA was not able to provide an annual financial statement for FY 2022-23, due to the novelty of the process and the HOAs unfamiliarity with it, City staff did not have sufficient information to update the FY 2022-23 budget line item. In accordance with Section 2 of the Reimbursement Agreement, the Developer submitted a request for reimbursement in February 2023. Due to the timing of the reimbursement request in FY 2022-23, Staff determined that in order to encapsulate the expenses within the proper fiscal year, based upon when they occurred, the reimbursement process will require a budget appropriation to fund the expenses incurred between October 2020 and June 2022.

The remaining Developer reimbursements for expenses incurred between July 2022 and October 2022 (end of the reimbursement period) will be funded from the FY 2023-24 budget and have been included in the FY 2023-24 budget preparations. This will align the CFD and Master HOA with the City’s fiscal year calendar and allow all remaining outstanding Developer reimbursements to be paid within Fiscal Year 2023-24.

Since $54,500 was carried over from the previous fiscal year budgets, this amount will be applied to the Developers reimbursement request. The following table shows the existing budget for the Wagon Wheel fund and the requested budget appropriation to fund the remainder of the request:

Item Description Amount
Developer Maintenance Reimbursement Request October 6, 2020 to June 30, 2022 $154,798.28 Current FY 2022-23 Wagon Wheel Budget for Maintenance Reimbursement ($54,400.00) Remaining Maintenance Reimbursement after Current FY Budget is Applied $100,398.28

Total Appropriation Request $100,399.00

STRATEGIC PRIORITIES

This agenda item is a routine operational item or does not relate to the five strategic priorities adopted by City Council on March 16, 2021.

FINANCIAL IMPACT

There will be no impact to the General Fund. This additional budget appropriation of $100,399 will be entirely funded from the existing fund balance within the Special Districts Fund.

Prepared by: Steve Howlett, Assistant Public Works Director

ATTACHMENTS

1. Agreement No. 8239

2. Developer Reimbursement Request Summary

3. City of Oxnard Special Districts Map

4. City of Oxnard Special Districts Legend

5. Presentation
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TOTALReimbursement Request February 2023
Description Total $
1 Enhanced Landscape WAH-0560 (Landscape Maintenance - All CFD Areas) $85,943.50 2 Kastle Kare WAH-0902 (Gopher Maintenance - Parks and Parkways) $750.00 3 Oakridge Landscape WAF-0463 (Spur Rd. Palm Maintenance) $0.00 4 Oakridge Landscape WAH-0406 (Spine Tree Trimming) $9,225.00 6 Oakridge Landscape WAH-0431 (Spine Phase 1 and 2 Replanting/Irrigation Service)$21,917.00 7 Oakridge Landscape WAH-0734 (Spine Phase 2 Replanting) $5,260.00 8 Storm Water Resources WAH-0706 (Storm Drain Services - Lot 8/Oxford FLats)$1,520.00 9 Storm Water Resources WAH-0707 (Storm Drain Services - Lot 9/Park Place) $2,120.00 10 Storm Water Resources Lot 15 (Storm Drain Services) $18,740.00 11 Combined Utilities (Electric and Water) $9,322.78
TOTAL $154,798.28
196
4 9
5 34
7 8
1 2
3 & 4
1 &
2 03
30 14
12 36
43 28
38 31
46 39
13 25
51 52
10 16
47 37
34 42
24 58
41 23
33 11
40 60
27 55
50 4954
32 53
This map is compiled by the City of Oxnard GIS Division, which is developed and operated solely for the convenience of the City. The City does not make any representations or warranties regarding the use, accuracy, reliability, and/or completeness of this map and no decision involving a risk of economic loss or physical injury should be made in reliance thereon. µ Maintenance Assessment District (District No.)
Waterway Assessment District (Zone No.)
Community Facilities District (District No.)
Landscape Maintenance District (District No.)

CITY OF OXNARD SPECIAL DISTRICTS
3,000 0 3,000 6,000
Feet
Created by:

Geographic Information Systems Division
March 2023
Data Source:

City of Oxnard GIS Division
County of Ventura GIS Program
197
1 & 2 – Westport at Mandalay Bay 7 – Wagon Wheel
3 & 4 – Seabridge at Mandalay Bay 8 – Sakioka Farms
5 – Riverpark 9 – Northshore at Mandalay Bay
3 – Riverridge 37 – Pacific Cove
10 – Country Club 38 – Aldea Del Mar
11 – St Tropez 39 – El Sueno Promesa
12 – Standard Pacific 40 – Cantada
13 – Le Village 41 – Pacific Cove
14 – California Cove 42 – Cantabria/Coronado
16 – California Lighthouse 43 – Greenbelt
23 – Greystone 46 – Daily Ranch
24 – Vineyards 47 – Sycamore Place
25 – The Pointe 49 – Cameron Ranch
27 – Rose Island 50 – PV Senior Housing
28 – Harborside 51 – Pfeiler
30 – Haas Automation 52 – Wingfield
31 – Rancho De La Rosa 53 – Huff Court
32 – Oak Park 54 – Meadowcrest
33 – El Paseo 55 – Wingfield West
34 – Sunrise Pt/Sunset Cove 58 – Westwind
36 – Villa Santa Cruz 60 – Artisan
Zone 1 – Mandalay Bay Zone 2 – Harbour Island

MAINTENANCE ASSESSMENT DISTRICT

WATERWAYS ASSESSEMENT DISTRICTS
4 – Mandalay Beach/Colony

LANDSCAPE MAINTENANCE DISTRICTS
CITY OF OXNARD – SPECIAL DISTRICTS
LANDSCAPE MAINTENANCE DISTRICT * COMMUNITY FACILITIES DISTRICTS WATERWAYS ASSESSMENT DISTRICTS * MAINTENANCE ASSESSMENT DISTRICTS

COMMUNITY FACILITIES DISTRICTS
198
Budget Appropriation for Fiscal Year 2022-23
for Community Facilities District Number 7,
Wagon Wheel.

Finance and Governance Committee
May 23, 2023
Anthony Miller
Project Manager
199
That the Finance and Governance Committee recommend
that the City Council approve a Fiscal Year 2022-23 budget appropriation from the available fund balance in the amount of $100,399 to the Special Districts Fund (120) for
reimbursement of Fiscal Year 2022-23 authorized Developer reimbursements from the Wagon Wheel Community Facilities District.

RECOMMENDATION 2
200
• On October 6, 2020, the City of Oxnard (the “City”) and Oakwood Communities LLC (“Developer”) on behalf of the
Wagon Wheel Master Association entered into a
Reimbursement Agreement (A-8239) to fund the
maintenance of Community Facility District (“CFD”) areas of responsibility via the Master Homeowners Association (“HOA”).
• The Developer was obligated to fund maintenance
expenses for CFD areas for 24 months beginning with the term of the Reimbursement Agreement
BACKGROUND 3
201
• As of February 2023, the Developer has submitted it’s first Reimbursement Request for maintenance expenses
incurred within CFD areas.
• During the creation of the Fiscal Year 2022-2023 budget, forecasted maintenance expenses, which would include
this Developer reimbursement, were not received from the Master HOA.
• Reimbursements were not included in the FY 2022-23
budget for Fund 120.

BACKGROUND 4
202
• City staff has been working closely with the Developer and Master HOA to verify maintenance expenses on behalf of
the Master HOA performed between October 2020, and
June 2022.
• In accordance with Section 2. of the Reimbursement
Agreement, the Master HOA is responsible for submitting forecasted annual maintenance expenses for CFD areas
which the Master HOA maintains on behalf of the CFD.
• The Master HOA was not able to provide an annual
financial statement for FY 2022-23, due to the novelty of the process and the HOAs unfamiliarity with it, City staff did not have sufficient information to update the FY 2022- 23 budget line item.

DISCUSSION 5
203
• In order to encapsulate the expenses within the proper fiscal year, based upon when they occurred, the
reimbursement process will require a budget appropriation to fund the expenses incurred between October 2020 and
June 2022.
• An existing $54,400.00 carried over from the previous fiscal year for maintenance reimbursements will be applied to this request.
• The following table illustrates the requested appropriation of existing fund balance for this request.

DISCUSSION 6
204
DISCUSSION 7
Item Description Amount
Developer Maintenance Reimbursement
Request October 6, 2020 to June 30, 2022 $154,798.28
Current FY 2022-23 Wagon Wheel Budget
for Maintenance Reimbursement ($54,400.00)
Remaining Maintenance Reimbursement
after Current FY Budget is Applied $100,398.28
Total Appropriation Request $100,399.00
205
• There will be no impact to the General Fund. This
additional budget appropriation will be entirely funded from the existing fund balance within the Special Districts Fund.

FINANCIAL IMPACT 8
206

QUESTIONS
9 207

FINANCE AND GOVERNANCE COMMITTEE

AGENDA REPORT

REPORTS
AGENDA ITEM NO. D.4

DATE: May 23, 2023

TO: Finance & Governance Committee

FROM: Helen Miller, Chief Information Officer, (805)385-7446, [email protected]

SUBJECT: Renewal of Purchase Order 8022 with CompuWave, Inc. for the Purchase of Information Technology Goods and Services. (10 minutes)

RECOMMENDATION

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/KcP2fVZ5Uxo

BACKGROUND

The Information Technology (IT) Department replaces outdated computer hardware throughout City facilities.

Obsolete computer equipment introduces cybersecurity risk and also decreases staff productivity because older equipment (e.g., personal computers, laptops, servers, storage) functions suboptimally and is incompatible with currently marketed technology solutions. The industry standard for computer equipment replacement is typically three years for personal computers (PCs) and three to five years for equipment such as servers and storage. The City has approximately 1,550 desktop and laptop computers, of which the oldest are between 6 and 9 years old.

Beginning with fiscal year 2021-22, the IT department adopted a five-year replacement schedule for desktop computers rather than retain the three-year schedule that was adopted by the City in 2005. The three-year schedule has consistently been a challenge to implement due to the lack of a dedicated City hardware replacement fund and adequate IT staffing to execute upon a citywide ongoing three-year replacement cycle program. Prior to July 2021, the oldest age of the City’s desktop computers was approximately 7 to 12 years old. Since the Council’s approval of the initial purchase order 8022 with CompuWave in June 2021 and adding two additional years to the replacement cycle, staff has decreased to an average age of 4.9 years as of April 2023, an improvement ranging from 43-145%. This accomplishment can only be maintained by adhering to the new five year PC replacement schedule with adequate annual funding for equipment and staffing within the IT department, and partnering with a vendor to support the City’s needs efficiently and at the best cost possible.

DISCUSSION

208
For more than ten years, the City has been using the joint purchase agreement between CompuWave and the County of Ventura Master Agreement to purchase IT equipment such as desktop computers, servers, storage, and related peripherals. The County last renewed this agreement on November 8, 2022 for another 3 year period ending October 31, 2025. The City currently has approximately 1,550 desktop and laptop computers, 90 servers and 35 storage devices that must be maintained and replaced as needed. Growth in staff also necessitates the purchase of new computers and related hardware. IT staff continuously checks pricing from various sources, and in most instances CompuWave provides pricing on the order of approximately ten percent less than other vendors who actively participate in State or national buying agreements. CompuWave delivers quality equipment and also provides services such as pre-installing the City’s standard software configurations and applying asset tags prior to delivering the machines to the City for minimal additional cost. Furthermore, CompuWave also provides short-term warehousing and storage services at no cost and delivers a specific number of computers as requested by IT staff to minimize the need for on-site storage space.

Since the last Council approval on June 1, 2021, the general cost of computer hardware has increased substantially. There are numerous reasons for this increase, such as chip manufacturer shortages, rising energy costs, and increasing freight costs. Also, the PCs being purchased today contain faster processors and additional memory to work well with data-centric modern office applications that rely on more device memory to support employees’ multitasking versus the legacy ‘dumb’ terminal access and internet browsing of the past. Over the last two years, the average cost of an enterprise-grade desktop computer has increased from $850 to $1,430 (+68%). Similarly, a laptop computer’s average cost has increased from $1,600 to $2,330 (+46%). A monitor’s cost increased from $160 to $208 (+30%). In summary, the combined effect of replacing the City’s aging equipment, equipment price increases, and the City’s increased demand for computer hardware because of employee growth resulted in expenditures that were 168% higher in FY 21-22 than in the prior FY 20-21 ($905k vs $337k). By the completion of the current two-year term of purchase order 8022 in June 2023, the City expects to spend approximately $1.4 million with CompuWave for the purchase of desktop computers, laptops, peripherals, servers, storage and related equipment and services.

TABLE 1 – History of expenditures with CompuWave, FY 2018/29 through FY 2022/23 Description Amount Spent
FY 2018-19 $167,235
FY 2019-20 $263,706
FY 2020-21 $337,243
FY 2021-22 $905,949
FY 2022-23 * $472,611
Total 5 year expenditure with
CompuWave
$2,146,744
* Actual amount of $422,611 as of April 30, 2023, plus an estimate of $50,000 by end of FY 22-23

The current Council-approved Purchase Order 8022 applies only to the purchases made during FY 2021-22 and 2022-23. FY 2021-22 was a significant catch-up year; the existing P.O. allowed IT to order a large amount of computers that year, which is why the expenditure in FY 2021-22 was exceptionally high. Of the $1.6 million authorized in FY 2021-22 and 2022-23, $1,378,560 was used for the upgrading of end-of-life desktop workstations and related hardware or software needs such as monitors, docking stations and productivity software, as well as to accommodate the purchase of new equipment as needed by City departments.

The IT Department would like to continue using CompuWave for sourcing the City's hardware, software, and service needs and is requesting that blanket purchase order 8022 be increased by $1,000,000 for a new not to 209
exceed total PO amount of $2,600,000 with the addition of a two year extension from July 1, 2023, through June 30, 2025. As in the previous two years, the full amount of the spending authorization is an estimate and may not be fully used; however, the total is based upon the City’s expected annual replacement needs as well as to allow for anticipated City departments’ growth and unexpected purchases in times of crisis.

STRATEGIC PRIORITIES

This agenda item supports the Organizational Effectiveness strategy. The purpose of the Organizational Effectiveness strategy is to reinforce, stabilize, improve, and strengthen the organizational foundation of the City in order to build a modern, high-functioning City government that effectively and efficiently supports the operating departments in providing high-quality services and programs for our residents and businesses.

FINANCIAL IMPACT

This blanket purchase order will not require additional expenditures above those approved in the adopted budget. Items purchased will be charged according to authorized budget appropriations in the Information Technology Fund.

Prepared by: Gary Krumian, Programmer Analyst, Helen Miller, Chief Information Officer

ATTACHMENTS

1. PO 8022 Compuwave

2. County of Ventura Piggyback Agreement

3. Presentation - FGC CompuWave May 23, 2023

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COUNTY OF VENTURA CONTRACT NUMBER #8926

C O N T R A C T
This Contract entered into this 4 th day of November, 2022, by, and between, the County of Ventura, a political subdivision of the State of California, hereinafter called "County" and BMAK dba Compuwave, hereinafter called "Contractor."

W I T N E S S E T H
WHEREAS, it is necessary and desirable that Contractor be engaged by County for the purpose of performing services for the County, with or without the furnishing of materials hereinafter described:

NOW, THEREFORE, IT IS HEREBY AGREED by the parties as follows:

1. SERVICES TO BE PERFORMED BY CONTRACTOR
In consideration of the payments hereinafter set forth, Contractor will provide commodities and may perform services for County in accordance with the terms, conditions and specifications set forth herein and Exhibit A, attached hereto.

2. PAYMENTS
In consideration of the services rendered in accordance with all terms, conditions and specifications set forth herein and in Exhibit A, County will make payment to Contractor in the manner specified in Exhibit A.

3. INDEPENDENT CONTRACTOR
No relationship of employer and employee is created by this Contract, it being understood that Contractor is an independent contractor, and neither Contractor nor any of the persons performing services for Contractor pursuant to this Contract, whether said person be member, partner, employee, subcontractor, or otherwise, will have any claim under this Contract or otherwise against County for sick leave, vacation pay, retirement benefits, social security, workers' compensation, disability, unemployment insurance benefits, or employee benefits of any kind.

It is further understood and agreed by the parties hereto that, except as provided in this Contract, Contractor in the performance of its obligation hereunder is subject to the control or direction of County merely as to the result to be accomplished by the services hereunder agreed to be rendered and performed and not as to the means and methods for accomplishing the results.

If, in the performance of this Contract, any third persons are employed by Contractor, such persons will be entirely and exclusively under direction, supervision and control of Contractor. All terms of employment, including hours, wages, working conditions, discipline, hiring and discharging or any other terms of employment or requirements of law, will be determined by 213
Contractor, and County will have no right or authority over such persons or the terms of such employment, except as provided in this Contract.

The Contractor will comply with all of the provisions of the Worker’s Compensation Insurance and Safety Acts of the State of California, the applicable provisions of Division 4 and 5 of the California Labor Code and all amendments, thereto; and all similar State and Federal acts or laws applicable; and will indemnify and hold harmless the County from and against all claims, demands, payments, suits, actions, proceedings and judgments of every nature and description, including attorney’s fees and costs, presented, brought or recovered against the County, for or on account of any liability under any of said Acts which may be incurred by reasons of any work to be performed under this Contract.

4. RESPONSIBILITY OF CONTRACTOR
The Contractor shall, prior to start of any work awarded hereby, secure at Contractor’s own expense all persons, employees and equipment required to perform the contract requirements.

Contractor will be held fully responsible for performance of any subcontractors.

5. WARRANTIES
Contractor shall warrant and represent that:
a. It’s work hereunder shall be of professional quality and performed consistent with generally accepted industry standards.
b. There exists no actual or potential conflict of interest concerning the services to be performed under this agreement. Contractor represents that performance under this agreement does not require the breach of any agreement or obligation to keep in confidence the proprietary information of another party.

6. NON-ASSIGNABILITY
Contractor will not assign this Contract or any portion thereof, to a third party without the prior written consent of County, and any attempted assignment without such prior written consent will be null and void and will be cause, at County's sole and absolute discretion, for immediate termination of this Contract.

7. TERM
This Contract will be in effect from November 1, 2022 through October 31, 2025 subject to all the terms and conditions set forth herein.

This Contract may, upon mutual agreement, be extended for up to two (2) additional one (1) year periods.

Time is of the essence in the performance of this contract. 214
Continuation of the Contract is subject to the appropriation of funds for such purpose by the County’s Board of Supervisors. If funds to effect such continued payment are not appropriated, County may terminate this project as thereby affected and Contractor will relieve County of any further obligation therefor.

8. TERMINATION
The County Purchasing Agent may terminate this Contract at any time for any reason by providing 10 days’ written notice to Contractor. In the event of termination under this paragraph, Contractor will be paid for all work provided to the date of termination, as long as such work meets the terms and conditions of this Contract. On completion or termination of this Contract, County will be entitled to immediate possession of and Contractor will furnish on request, all computations, plans, correspondence and other pertinent data gathered or computed by Contractor for this particular Contract prior to any termination.

Contractor may retain copies of said original documents for Contractor's files.

Contractor hereby expressly waives any and all claims for damages or compensation arising under this Contract except as set forth in this paragraph in the event of such termination.

This right of termination belonging to the County of Ventura may be exercised without prejudice to any other remedy which it may be entitled at law or under this Contract.

9. DEFAULT
If Contractor defaults in the performance of any term or condition of this Contract, Contractor must cure that default by a satisfactory performance within 10 days after service upon Contractor of written notice of the default. If Contractor fails to cure the default within that time, then County may terminate this Contract without further notice.

The foregoing requirement for written notice and opportunity to cure does not apply with respect to paragraph 4 above.

10. INDEMNIFICATION, HOLD HARMLESS AND WAIVER OF SUBROGATION All activities and/or work covered by this Contract will be at the risk of Contractor alone. Contractor agrees to defend, indemnify, and save harmless the County, including all of its boards, agencies, departments, officers, employees, agents and volunteers, against any and all claims, lawsuits, whether against Contractor, County or others, judgments, debts, demands and liability, including without limitation, those arising from injuries or death of persons and/or for damages to property, arising directly or indirectly out of the obligations herein described or undertaken or out of operations conducted or subsidized in whole or in part by Contractor, save and except claims or litigation arising through the sole negligence or wrongdoing and/or sole willful misconduct of County. Contractor agrees to waive all rights of subrogation against County for losses arising directly or indirectly from the activities and/or work covered by this Contract.
215

11. INSURANCE PROVISIONS
A) Contractor, at its sole cost and expense, will obtain and maintain in full force during the term of this Contract the following types of insurance:
1) General Liability "occurrence" coverage in the minimum amount of $1,000,000 combined single limit (CSL) bodily injury & property damage each occurrence and $2,000,000 aggregate, including personal injury, broad form property damage, products/completed operations, and broad form blanket contractual.
2) Commercial Automobile Liability coverage in the minimum amount of $1,000,000 CSL bodily injury & property damage, including owned, non-owned, and hired automobiles. Also to include
Uninsured/Underinsured Motorists coverage in the minimum amount of $100,000 when there are owned vehicles.
3) Workers' Compensation coverage, in full compliance with California statutory requirements, for all employees of Contractor and Employer's Liability in the minimum amount of $1,000,000.

B) All insurance required will be primary coverage as respects County and any insurance or self-insurance maintained by County will be excess of Contractor’s insurance coverage and will not contribute to it.

C) County is to be notified immediately if any aggregate insurance limit is exceeded. Additional coverage must be purchased to meet requirements.

D) The County, and any applicable Special Districts are to be named as Additional Insured as respects to work done by Contractor under the terms of this Contract for General Liability Insurance.

E) Contractor agrees to waive all rights of subrogation against the County, Its Boards, Agencies, Departments, any applicable Special Districts, Officers, Employees, Agents and Volunteers for losses arising from work performed by Contractor under the terms of this Contract.

F) Policies will not be canceled, non-renewed or reduced in scope of coverage until after sixty (60) days written notice has been given to the County of Ventura, Risk Management Division.

G) Contractor agrees to provide County with the following insurance documents on or before the effective date of this Contract:

1. Certificates of Insurance for all required coverage.

2. Additional Insured endorsement for General Liability Insurance. 216

3. Waiver of Subrogation endorsement (a.k.a.: Waiver of Transfer Rights of Recovery Against Others, Waiver of Our Right to Recover from Others) for Workers’ Compensation.

Failure to provide these documents will be grounds for immediate termination or suspension of this contract.

12. NON-DISCRIMINATION
A) General.

No person will on the grounds of race, color, national origin, religious affiliation or non-affiliation, sex, age, handicap, disability, or political affiliation, be excluded from participation in, be denied the benefits, or be subjected to discrimination under this Contract.

B) Employment.

Contractor will insure equal employment opportunity based on objective standards of recruitment, selection, promotion, classification, compensation, performance evaluations, and management relations, for all employees under this Contract. Contractor's personnel policies will be made available to County upon request.

13. SUBSTITUTION
If particular people are identified in Exhibit A as working under this Contract, the Contractor will not assign others to work in their place without written permission from the County Purchasing Agent. Any substitution will be with a person of commensurate experience and knowledge.

14. INVESTIGATION AND RESEARCH
Contractor by investigation and research has acquired reasonable knowledge of all conditions affecting the work to be done and labor and material needed, and the execution of this Contract is to be based upon such investigation and research, and not upon any representation made by the County or any of its officers, agents or employees, except as provided herein.

15. CONTRACT MONITORING
The County will have the right to review the work being performed by the Contractor under this Contract at any time during Contractor's usual working hours. Review, checking, approval or other action by the County will not relieve Contractor of Contractor's responsibility for the thoroughness of the services to be provided hereunder. This Contract will be administered by Maria Moreno or his/her authorized representative.

16. ADDENDA
County may from time to time require changes in the scope of the services required hereunder. Such changes, including any increase or decrease in the 217
amount of Contractor's compensation which are mutually agreed upon by and between County and Contractor will be effective when incorporated in written amendments to this Contract.

17. CONFLICT OF INTEREST
Contractor covenants that Contractor presently has no interest, including, but not limited to, other projects or independent contracts, and will not acquire any such interest, direct or indirect, which would conflict in any manner or degree with the performance of services required to be performed under this Contract. Contractor further covenants that in the performance of this Contract no person having such interest will be employed or retained by Contractor under this Contract.

18. FORCE MAJEURE
Except for defaults of subcontractors, neither party shall be responsible for delays or failures in performance resulting from acts beyond the control of the offending party.

Such acts include but shall not be limited to acts of God, fire, flood, earthquake, other natural disaster, nuclear accident, strike, lockout, riot, freight embargo, public regulated utility, or government statutes or regulations superimposed after the fact.

If a delay or failure in performance by the Contractor arises out of a default of its subcontractor, and if such default arises out of the causes beyond the control of both the Contractor and subcontractor, and without the fault or negligence of either of them, the Contractor shall not be liable for damages of such delay or failure, unless the supplies or services to be furnished by the subcontractor were obtainable from other sources in sufficient time to permit the Contractor to meet the required performance schedule.

19. CONFIDENTIALITY
Any reports, information, data, statistics, forms, procedures, systems, studies and any other communication or form of knowledge given to or prepared or assembled by Contractor under this Contract which County requests in writing to be kept confidential, will not be made available to any individual or organization by Contractor without the prior written approval of the County except as authorized by law.

20. NOTICES
All notices required under this Contract will be made in writing and addressed or delivered as follows:

TO COUNTY: County of Ventura
General Services Agency
Procurement Services
800 South Victoria Avenue, L#1080
Ventura, CA 93009
218
TO CONTRACTOR: BMAK dba Compuwave
1839 Knoll Drive
Ventura, CA 93003
Either party may, by giving written notice in accordance with this paragraph, change the names or addresses of the persons of departments designated for receipt of future notices. When addressed in accordance with this paragraph and deposited in the United States mail, postage prepaid, notices will be deemed given on the third day following such deposit in the United States mail.

In all other instances, notices will be deemed given at the time of actual delivery.

18. MERGER CLAUSE
This Contract along with the following documents, which are incorporated into this agreement by reference, hereto constitute the final expression of the agreement of the parties and supersedes any and all other contracts, either oral or written, between Contractor and the County of Ventura, with respect to the subject of this contract.

This Contract contains all of the covenants and contracts between the parties with respect to the services required hereunder. Contractor acknowledges that no representations, inducements, promises or contracts have been made by or on behalf of County except those covenants and contracts embodied in this Contract. No contract, statement, or promise not contained in this Contract will be valid or binding.

This Agreement may not be altered, amended, or modified except by written instrument signed by the duly authorized representatives of both parties. In the event of an inconsistency in this Agreement, the inconsistency shall be resolved in the following order:

1. This Agreement

2. County of Ventura RFP #6038

19. GOVERNING LAW
The validity of this Contract and any of its terms or provisions, as well as the rights and duties of the parties under this Contract, will be construed pursuant to and in accordance with the laws of the State of California.

20. SEVERABILITY OF CONTRACT
If any term of this Contract is held by a court of competent jurisdiction to be void or unenforceable, the remainder of the Contract terms will remain in full force and effect and will not be affected.
219

21. CUMULATIVE REMEDIES
The exercise or failure to exercise of legal rights and remedies by the County in the event of any default or breach hereunder will not constitute a waiver or forfeiture of any other rights and remedies, and will be without prejudice to the enforcement of any other right or remedy available by law or authorized by this Contract.

22. COMPLIANCE WITH LAWS
Each party to this Contract will comply with all applicable laws.

23. CONSTRUCTION OF COVENANTS AND CONDITIONS
Each term and each provision of this Contract will be construed to be both a covenant and a condition.

24. NON-EXCLUSIVITY
The County reserves the right to contract with providers of similar services and/or equipment other than the Contractor when it is reasonably determined to be in the best interest of the County.
220
221
222
EXHIBIT "A"

CONTRACTORS RESPONSIBILITY
Provide all necessary labor, supervision, materials, and supplies to provide Personal Computers, Peripherals, and Related Services specified in the manner and time therein prescribed. The cost of all labor, supervision, materials, and supplies for providing the services, even though not shown or specified, shall be included in the percentage markup for the various brands and categories, Exhibit B.

COMPENSATION SCHEDULE
Payment terms are Net 30 Days upon receipt of invoice, in arrears for services rendered.

The cost plus margin will be the only amount paid for products provided under this contract. All associated costs (labor, supervision, materials, freight, etc.) are included in the percentage markup/margin. Margins shall remain firm for the term of the contract. 223
Exhibit B
HEWLETT PACKARD Proposed
Markup %
Standard Warranty
Category
PC’s 4 3 year next business day on-site
Laptops 4 1 or 3 years standard, upgrade options
available
Tablets 4 1 or 3 years standard, upgrade options
available
Monitors 4 3 year replacement warranty
Printers/Scanners 4 1 year warranty standard
Networking Components 4 Limited Lifetime parts, 5 year labor Servers 4 3 year next business day on-site
Supplies 4 1 year standard warranty
DELL Proposed
Markup %
Standard Warranty
Category
PC’s 4 3 year next business day on-site
Laptops, 4 3 year standard warranty
Tablets 4 3 year standard warranty
Monitors 4 3 year standard warranty
Printers/Scanners N/A Dell no longer offers this product line Servers 4 3 year next business day on-site
Networking Components 4 5 year standard warranty
Supplies 4 1 year standard warranty
LENOVO Proposed
Markup %
Standard Warranty
Category
Laptops, 4 1-3 year standard, upgrade options
available
PC’s 4 3 year next business day on-site
Tablets 4 1 or 3 year standard, upgrade options
available
Monitors 4 3 year standard warranty
Accessories 4 1 year standard warranty
SONY Proposed
Markup %
Standard Warranty
Category
Laptops N/A Sony no longer offers this product line
TOSHIBA Proposed
Markup %
Standard Warranty
224
Category
Laptops N/A Toshiba no longer offers this product
line
VIEWSONIC Proposed
Markup %
Standard Warranty
Category
Monitors 6 3 year warranty standard, exchange
NEC Proposed
Markup %
Standard Warranty
Category
Monitors 6 3 year warranty standard, exchange
XEROX Proposed
Markup %
Standard Warranty
Category
Printers 6 1 year standard warranty
EPSON Proposed
Markup %
Standard Warranty
Category
Printers 6 2 year warranty w/product registration
Scanners 6 3 year standard warranty
CANON Proposed
Markup %
Standard Warranty
Category
Printer 7 1 year standard warranty
OKIDATA Proposed
Markup %
Standard Warranty
Category
Printers 7 1 year standard warranty
FUJITSU Proposed
Markup %
Standard Warranty
Category
Scanners 6 1 year standard warranty
KINGSTON Proposed
Markup %
Standard Warranty
Category
Memory 9 Limited lifetime warranty

AMERICAN POWER

CONVERSION
Proposed
Markup %
Standard Warranty
Category
225
Uninterruptible Power
Supplies (UPS)
7 3 year standard warranty
BELKIN Proposed
Markup %
Standard Warranty
Category
Cables 9 Limited lifetime warranty
Surge Protectors 9 Limited lifetime warranty
LOGITECH Proposed
Markup %
Standard Warranty
Category
Mouse 9 3 year warranty
Keyboard 9 3 year warranty
Headsets 9 2 year warranty
MICROSOFT Proposed
Markup %
Standard Warranty
Category
Mouse 9 1 year warranty
Keyboards 9 1 year warranty
Tablets 6 1 year warranty standard, upgrade
options
Laptops 6 1 year warranty standard, upgrade
options
PLANTRONICS Proposed
Markup %
Standard Warranty
Category
Telephone Headsets 9 1 year warranty
Miscellaneous purchases from other than listed manufacturers shall be provided at cost plus 9%. Miscellaneous software purchases, other than those on special licensing agreements, will be provided at cost plus 9%. Any Apple product may be purchased at cost plus 4%.

Asset tag affixing fee $0 per System
Asset Management $0 per System
Imaging $25.00 per System
On-Site delivery only $0 per System
On-Site set-up/un-boxing $0 per System
Software installation $25.00 per System, unlimited applications TRIPP LITE Proposed
Markup %
Standard Warranty
Category
Surge Protectors 9 Limited lifetime warranty
226
Purchase Order 8022 Renewal with
CompuWave, Inc. for purchase of
technology goods and services
Finance & Governance Committee
May 23, 2023
Helen Miller, CIO
227
That the Finance and Governance Committee recommend that the City Council approve and authorize the Mayor to extend Purchase Order 8022 for information technology goods and services with CompuWave, Inc. for an additional two-year term expiring June 30, 2025, and increasing the not to exceed amount from $1,600,000 to $2,600,000.

RECOMMENDATION 2
228
• IT Department supports and manages the replacement of approximately 1,550 computers throughout the City
• Obsolete computer equipment introduces cybersecurity risk and decreases staff productivity
• Industry standard for personal computers is 3 years; hardware such as servers, storage is 3 to 5 years
• Prior to Council’s approval of PO 8022 in July 2021, age of oldest City PCs were 7-12 years
• In past two years, City achieved an average PC age of 4.9 years BACKGROUND 3
229
• The County of Ventura has maintained a purchase agreement with CompuWave for several years and the City has piggy- backed on this agreement for over a decade
• IT Department staff continuously checks pricing from various sources to ensure competitive pricing
• CompuWave’s prices are consistently advantageous to the City – with savings averaging 10%, and vendor also provides value- added services such as warehousing and imaging services for no or minimal additional cost
DISCUSSION 4
230
Over the past five years, City has annually purchased an average of $430,000 of computer hardware and services from CompuWave Increase in FY21-22 spending due to:
• Authorization of Council (June 1, 2021) to aggressively replace the oldest and most obsolete computer hardware
• Increase in the costs of computer and related equipment • Standardization of computers with higher level specs to account for the need to run modern office data-centric applications and processes DISCUSSION 5
FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
$167,235 $263,706 $337,243 $905,949 $472,611*
231
• Staff is requesting that blanket PO #8022 be increased by $1,000,0000 for a new not to exceed total PO amount of $2,600,000 with the addition of a two year extension from July 1, 2023 through June 30, 2025
• This amount will allow for scheduled replacements and new or unexpected purchases as needed
• This purchase order will not require additional expenditures above those approved in the adopted budget. Items purchased will be charged to authorized appropriations in the Information Technology department
DISCUSSION / FINANCIAL IMPACT 6
232
That the Finance and Governance Committee recommend that the City Council approve and authorize the Mayor to extend Purchase Order 8022 for information technology goods and services with CompuWave, Inc. for an additional two-year term expiring June 30, 2025, and increasing the not to exceed amount from $1,600,000 to $2,600,000.

RECOMMENDATION 7
233

QUESTIONS
8 234

FINANCE AND GOVERNANCE COMMITTEE

AGENDA REPORT

REPORTS
AGENDA ITEM NO. D.5

DATE: May 23, 2023

TO: Finance & Governance Committee

FROM: Mark Sewell, Assistant Chief Financial Officer, 805-385-7851, [email protected]

SUBJECT: Public Safety Property Tax Assessment FY 2023-24. (10 minutes)

RECOMMENDATION

That the Finance and Governance Committee review and recommend to City Council the adoption of a resolution establishing the FY 2023-24 tax rates on property in the City of Oxnard for the payment of voter- approved obligations related to public safety personnel pension expenses.

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/nVV7c0BhqQw

BACKGROUND

A special municipal election held on October 23, 1951, authorized the City to enroll its Fire and Police Safety employees in the California State Employees' Retirement System (later renamed the California Public Employees' Retirement System or CalPERS), and obligated the City to pay the annual costs of participation in the retirement system. Each year, the City Council adopts a resolution establishing the annual tax rate on property in the City of Oxnard for the payment of voter-approved obligations, which is exempt from the one percent (1%) tax limitation established by Proposition 13. This tax is sometimes referred to as the "Carman Override" based upon the 1982 California Supreme Court case Carman v. Alvord in which the Court ruled that voter approved pension costs constituted debt that could be supported by a tax levy in excess of the 1% maximum allowed by Proposition 13. Only 24 out of 482 cities in California have access to this property tax override.

The City has two taxing districts, District I and District IV. District IV consists of property that in December 1969 was annexed to the City, but not into District I and accounts for less than one quarter of one percent of the City’s property tax base. The City's tax rate for the voter-approved obligations only applies to District I. All future annexations into the City now also require annexation into District I, such that any future annexed area would be subject to tax levy for voter-approved indebtedness.

A 2002 court case in the City of Huntington Beach limited costs covered by the public safety property tax to the pension benefits in effect when Proposition 13 became effective - July 1, 1978. Costs for increased benefits granted after July 1, 1978, are excluded from the tax calculation.

The City engaged Foster & Foster, Inc., to complete an actuarial analysis and estimate the eligible CalPERS costs for FY 2023-24. Their analysis determined the eligible CalPERS costs related to Police and Fire employees' salaries that can be paid from the proceeds of the public safety property tax assessment for FY 235
2023-24 are an estimated $17,447,047. Total public safety retirement costs for FY 2023-24 are estimated at $26,168,094.

The tax rate is calculated each year based on forecast expenditures, the available fund balance that can be utilized and the forecasted assessed property values. As a result of a City-initiated audit, the County Tax Collector began applying the Public Safety Property Tax Assessment to RDA and Unitary properties beginning in FY 2020-21. This resulted in an excess available fund balance which was utilized in FY 2022-23 to lower the required assessment and corresponding tax rate. The levy on these properties will continue to help lower the assessment on remaining properties going forward.

The estimated surplus fund balance for the Public Safety Retirement Fund (Fund 119) at June 30, 2023 is $2,855,822, which will be credited against the required revenue in FY 2023-24 to produce a new net tax rate, calculated as follows:

Beginning fund balance (Fund 119) at July 1, 2022 $ 6,982,829 Plus: estimated revenue received through June 30, 2023 11,052,589 Less: estimated expenditures through June 30, 2023 (15,179,596) Total estimated ending fund balance at June 30, 2023 $ 2,855,822

Forecasted eligible public safety expenditures for FY 2023-24 $17,447,047 Less: estimated fund balance at June 30, 2023 (2,855,822) Total assessment for FY 2023-24 $14,591,225
Less: estimated Unitary tax contribution 2,841,500
Total amount assessed on Oxnard property base for FY 2023-24 $11,749,726

Based upon projected taxable assessed value (AV) for FY 2023-24 of $25,682,396,129, and projected contributions of $2,841,500 from state-allocated unitary tax payments, the total tax rate required to generate $14,591,225 to contribute toward eligible Police and Fire retirement costs is $0.045750 per $100 of assessed value (AV). As an example, for every $100,000 in assessed value, a property owner will pay $45.75. The maximum allowable tax rate for the Public Safety Pension Tax is $0.076637 per $100 of AV, which would result in a payment of $76.64 for every $100,000 of AV. The average assessed rate for the previous 5 years is $0.054213 per $100 of AV or $54.21 per $100,000 of AV.

The FY2023-24 proposed rate of $0.045750 per $100 is 15.6% lower than the average rate over the previous 5 years. However, this tax rate is higher than last year's rate of $0.029095 per $100 of AV. Last year's rate was much lower to a one-time adjustment related to inclusion of unitary properties. Without the one-time adjustment, last year's rate would have been approximately $0.49286 per $100 of AV, which is commensurate with the proposed FY2023-24 rate of $0.045750 per $100 of AV.

The proposed budget for FY 2023-24 includes approximately 147 fire positions and 240 police positions covered under the voter approved authorization.

STRATEGIC PRIORITIES

This agenda item is a routine operational item or does not relate to the five strategic priorities adopted by City Council on March 16, 2021.

FINANCIAL IMPACT

236
The total estimated retirement cost for FY 2023-24 for 387 public safety employees is $26.2 million, of which $17.4 million is the amount eligible to be levied through the Public Safety Tax assessment. After accounting for the estimated $2.9 million surplus fund balance at the end of June, 2023 for the Public Safety Retirement Fund, the net amount assessed or levied for FY 2023-24 is $14.6 million, of which, $2.8 million is estimated to be collected through unitary taxes, resulting in a net tax rate of $0.045750 per $100 of AV. The remaining public safety retirement cost of $8.7 million is budgeted in other operating funds for FY 2023-24, primarily the General Fund.

Prepared by: Jim Costello, Financial Analyst III

ATTACHMENTS

1. Resolution - FY 2023-24 Property Tax Rate

2. FY 23-24 Public Safety Property Tax Assessment Presentation.v2

237

RESOLUTION NO.___________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OXNARD
ESTABLISHING THE FISCAL YEAR 2023-24 PROPERTY TAX RATE

FOR VOTER APPROVED OBLIGATIONS

WHEREAS, Section 2237.2 of the Revenue and Taxation Code requires that within 90 days of the end of the fiscal year, the City report to the County Controller the tax rate and total revenues expected to be generated in the current fiscal year for voter approved obligations; and

WHEREAS, the City’s adopted budget for the Fiscal Year 2023-24 appropriates monies required to pay voter approved obligations of the City; and

WHEREAS, the total assessed valuation for Fiscal Year 2023-24 was estimated based on Ventura County Auditor-Controller provided assessed valuation of City tax districts for tax rate purposes.

NOW, THEREFORE, the City Council of the City of Oxnard hereby determines and resolves that the following amounts of revenue from property taxes are required for the current fiscal year to pay the City’s obligation for public safety retirement expenditures:

Total Property Taxes from Required FY 2023-24 Tax Rates on Projected Secured and Unsecured Assessed Values $14,591,225

The City Council of the City of Oxnard further resolves that for the purpose of raising such revenue the rates of taxation for the different portions of the City are hereby fixed and taxes are hereby levied on the taxable property in the City for the fiscal year beginning July 1, 20 23, in the number of dollars upon each one hundred dollars of the assessed value of the property as assessed by the County Assessor and equalized by the Board of Equalization of the County of Ventura as set forth in the following table. The taxes levied upon property in each portion of the City hereinafter described and designated by a tax district number is at the rate set in the column headed by the tax district number which is prefixed to the description of such portion of the City as hereinafter stated.

TAX DISTRICT I

All territory included within the boundaries of the City, as originally incorporated, and all territory annexed to the City by action of the City Council by annexation proceedings, excepting there-from Annexation No. 69-9.

TAX DISTRICT IV

All territory annexed to the City by action of the City Council as described in Ordinance No. 1255, adopted November 12, 1969, to become effective December 12, 1969, known and referred to Annexation No. 69-9 (Rancho La Ribera).

238
Resolution No.

Page 2 ends

DISTRICT I DISTRICT IV
Public Safety Retirement Fund
Tax Rate Required (Per $100 Assessed Value) 0.045750 -0-

Total Tax District Tax Rates
(Per $100 Assessed Value) 0.045750 -0-

The City Council of the City of Oxnard further resolves that the foregoing tax rate is determined to be necessary to provide revenues required for the stated purpose during the period specified; that the City Council does hereby levy this sum on the property in such tax districts for Fiscal Year 2023-24; that in accordance with Government Code Section 36936.1, the City Clerk is instructed to cause this resolution to be published one time in the newspaper within 15 days after adoption; and that the City Clerk is instructed to transmit immediately to the County Auditor a certified copy of this resolution.

PASSED AND ADOPTED this _____ day of June, 2023, by the following vote:

AYES:

NOES:

ABSENT:

John C. Zaragoza, Mayor
ATTEST:

Rose Chaparro, City Clerk

APPROVED AS TO FORM:

Stephen M. Fischer, City Attorney
239
Public Safety Property Tax Assessment
for FY 2023-24 (Carman Override)
Annual resolution setting the tax rate on property in the City of Oxnard for the payment of voter-approved obligations related to public safety personnel pension expenses
Finance and Governance Committee Meeting
Denise Olson, Interim Chief Financial Officer
May 23, 2023
240
That the Finance and Governance Committee
review and recommend to City Council the
adoption of a resolution establishing the Fiscal
Year 2023-24 tax rates on property in the City of
Oxnard for the payment of voter-approved
obligations related to public safety personnel
pension expenses
RECOMMENDATION 2
241
• Public safety pension cost obligation authorized by voters in 1951 • Applies only to public safety pension benefits that were in effect on July 1, 1978
• Capped at the rate that was in effect in 1983-84 ($0.076637 per $100 of assessed value)
• Third-party actuarial analysis performed annually to determine eligible costs
• The proposed budget for FY 2023-24 includes approximately 147 fire positions and 240 police positions
• Total estimated public safety CalPERS retirement costs for FY2023- 24 are $26,168,094
• Estimated eligible public safety CalPERS retirement costs:
$17,447,047
Public Safety Property Tax - Background 3
242
Factors used in determining required tax rate
Public Safety Property Tax - Discussion 4
Total projected assessed property value for FY2023-24 $25,682,396,129 Total projected eligible expenses for FY2023-34 $17,447,047 Less: Projected ending available fund balance (fund 119) $2,855,822 Total revenue required from assessments $14,591,225
Less: Projected revenue from unitary properties (See next slide) $2,841,500 Revenue required from assessed properties $11,749,726
Tax rate needed to meet required revenue $0.045750 per $100 Revenue required from assessed properties/projected assessed property value = tax rate 243
• Unitary property is property owned by railroads and utilities taxed at the state level and allocated back to the cities and counties. The City began receiving Public Safety Pension tax payments on unitary property in FY2020-21.
• The proposed rate for FY 2023-24 is lower than the 1983-84 Capped rate ($0.076637 per $100 of assessed value).
• The proposed rate for FY2023-24 is 12.2% lower than the average rate over the previous 5 years.

Summary 5
244
That the Finance and Governance Committee review
and recommend to City Council the adoption of a
resolution establishing the Fiscal Year 2023-24 tax
rates on property in the City of Oxnard for the
payment of voter-approved obligations related to
public safety personnel pension expenses.

RECOMMENDATION 6
245
246

FINANCE AND GOVERNANCE COMMITTEE

AGENDA REPORT

REPORTS
AGENDA ITEM NO. D.6

DATE: May 23, 2023

TO: Finance & Governance Committee

FROM: Mark Sewell, Assistant Chief Financial Officer, 805-385-7851, [email protected]

SUBJECT: Annual Delegation of Investment Authority. (10 minutes)

RECOMMENDATION

That the Finance and Governance Committee recommend the City Council adopt a resolution delegating investment authority to the City Treasurer for FY 2023-24.

BACKGROUND

Government Code section 53607 authorizes the City Council to delegate its authority to invest or to reinvest City funds, or to sell or exchange securities so purchased, for a one-year period to the City Treasurer. The Council may also renew this delegation of authority each year. On September 15, 1992, the City Council adopted Resolution No. 10,455, delegating to the City Treasurer the authority to invest and to reinvest surplus City funds in short-term public investments and securities. The attached resolution renews the City Treasurer’s investment authority pursuant to Resolution No. 10,455 and Government Code section 53607.

STRATEGIC PRIORITIES

FINANCIAL IMPACT

There is no financial impact.

Prepared by: Denise Olson, Interim Chief Financial Officer

ATTACHMENTS

1. Resolution - FY 23-24 Annual Delegation of Investment Authority

247
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OXNARD

DELEGATING INVESTMENT AUTHORITY TO THE CITY TREASURER
WHEREAS, on September 15, 1992, the City Council adopted Resolution No. 10,455, delegating to the City Treasurer the authority to invest and reinvest City funds; and WHEREAS, effective January 1, 1997, Government Code section 53607 was amended to provide the authority of the City Council to invest or to reinvest City funds, or to sell or exchange securities so purchased, may be delegated for a one-year period by the Council to the City Treasurer, who shall thereafter assume full responsibility for those transactions until the delegation of authority is revoked or expires; and
WHEREAS, it remains the intention of the City Council to delegate such authority to the City Treasurer.

NOW, THEREFORE, the City Council of the City of Oxnard resolves to delegate to the City Treasurer the authority to invest and to reinvest City funds, and to sell and exchange securities so purchased, thereby reaffirming such delegation of authority contained in Resolution No. 10,455, for a one-year period.

PASSED AND ADOPTED this 20th day of June, 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

John C. Zaragoza, Mayor

ATTESTED:

Rose Chaparro, City Clerk

APPROVED AS TO FORM:

______________________________
Stephen Fischer, City Attorney

248

FINANCE AND GOVERNANCE COMMITTEE

AGENDA REPORT

REPORTS
AGENDA ITEM NO. D.7

DATE: May 23, 2023

TO: Finance & Governance Committee

FROM: Mark Sewell, Assistant Chief Financial Officer, 805-385-7851, [email protected]

RECOMMENDATION

That the Finance and Governance Committee recommend the City Council approve and authorize a resolution declaring the intent of the City to be reimbursed for certain capital expenditures from the proceeds of indebtedness.

Presentation will be live on Consultant’s request.

BACKGROUND

On October 18, 2022, City Council and the Board of Directors of the City of Oxnard Financing Authority approved the issuance of not to exceed $36 million Lease Revenue Bonds, Series 2022A to finance street improvements and $9 million Lease Revenue Bonds, Series B (together, the “Bonds”) to finance the implementation of Phases 3 and 4 of the City’s ERP Project.

City staff were working with the City’s municipal financial advisors, special legal counsel, and underwriters to structure and sell the Bonds. However, the timing of the issuance of the Bonds has been delayed due to the latest Aaron Starr lawsuit. In order to avoid delays in the construction of the street improvements and ERP implementation, City staff propose to use cash reserves in the General Fund and Measure O to cover the cost of those projects until the Bonds can be issued. Accordingly, City staff propose this reimbursement resolution so that the City’s General Fund may be reimbursed for tax-exempt street improvement costs that are incurred prior to the issuance of the Bonds; the ERP Bonds, which would be taxable, require no such resolution for reimbursement.

In order for the reimbursement of previously expended project costs from Bond proceeds to be compliant with the IRS requirements, the City is required to adopt a resolution declaring its intention to be reimbursed within 60 days of when the costs were paid by the City.

While adopting the reimbursement resolution demonstrates the City’s intent to borrow funds and preserves the option for the City to be reimbursed in the future, adopting the reimbursement resolution does not directly obligate the City to issue the Bonds. If Bonds are issued, this resolution does not obligate the City to reimburse the General Fund for costs that may be incurred before the Bonds are issued.

249

STRATEGIC PRIORITIES

This agenda item is a routine operational item or does not relate to the five strategic priorities adopted by City Council on March 16, 2021.

FINANCIAL IMPACT

This reimbursement resolution does not directly obligate the City to incur a financial liability and is not expected to have any direct financial impact on the City.

Prepared by: NHA Advisors, LLC

ATTACHMENTS

1. Oxnard Streets Reimbursement - Resolution

2. Oxnard Street Improvements Reimbursement Presentation

250

CITY COUNCIL OF THE CITY OF OXNARD
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF OXNARD DECLARING THE INTENT OF THE CITY TO

BE REIMBURSED FOR CERTAIN CAPITAL

EXPENDITURES FROM THE PROCEEDS OF

INDEBTEDNESS
WHEREAS, the City of Oxnard (the “City”) intends to finance certain street improvement projects throughout the City (the “Project”); and WHEREAS, the City will pay certain Capital Expenditures in connection with the Project (the "Street Improvement Expenditures") prior to the issuance of one or more series of tax-exempt obligations in the expected approximate principal amount of $36 million (the "Street Improvement Indebtedness") for the purpose of financing costs associated with the Project; and WHEREAS, the City reasonably expects that certain of the proceeds of the Street Improvement Indebtedness will be used to reimburse the City for the Street Improvement Expenditures; and
WHEREAS, Section 1.150-2 of the Treasury Regulations requires the City to declare its official intent to be reimbursed for prior Capital Expenditures made for the Project with proceeds of a subsequent borrowing.

NOW, THEREFORE, the City Council of the City of Oxnard resolves:

Section 1. The City finds and determines that the foregoing recitals are true and correct.

Section 2. This declaration is made solely for purpose of establishing compliance with the requirements of Section 1.150-2 of the Treasury Regulations, and does not bind the City to make any expenditure, incur any indebtedness, or proceed with the Project.

Section 3. The City declares its official intent to use proceeds of the Street Improvement Indebtedness to reimburse itself for Street Improvement Expenditures made on or after the date which is no more than 60 days prior to the date of adoption of this Resolution.

Section 4. The City will make a reimbursement allocation, which is a written allocation by the City that evidences the City's use of proceeds of the Street Improvement Indebtedness to reimburse itself for the Street Improvement Expenditures, in accordance with applicable federal law, including Section 1.150-2 of the Treasury Regulations.

Section 5. The City recognizes that exceptions are also available under the Treasury Regulations for certain "preliminary expenditures," costs of issuance, certain de minimis amounts, 251
Resolution No. _____ (Streets Project Reimbursement Resolution)

Page 2 ends

expenditures by "small issuers" (based on the year of issuance and not the year of expenditure) and expenditures for construction projects of at least five (5) years.

This Resolution shall take effect upon its adoption by this City Council.

PASSED AND ADOPTED THIS ______ DAY OF _________________, BY THE FOLLOWING VOTE:

AYES:

NOES:

ABSENT:

ABSTAIN:

John C. Zaragoza
Mayor
ATTEST:
_____________________________
Rose Chaparro
City Clerk
APPROVED AS TO FORM:
_____________________________
Stephen M. Fischer
City Attorney
252
City of Oxnard
Oxnard Street Improvements Reimbursement Presentation

PRESENTATION TO FINANCE AND GOVERNANCE COMMITTEE
May 23, 2023
253
Recommendations
That the Finance and Governance Committee recommend the City Council approve and authorize a resolution declaring the intent of the City to be reimbursed for certain capital expenditures from proceeds of indebtedness 2 254
Background
City Council approved the issuance of Lease Revenue Bonds in October 2022 $36,000,000 for Street Improvement Projects
$9,000,000 for ERP Phases 3 & 4 Implementation
Timing of the bond issuance is delayed; to avoid delaying the projects, the City plans to use cash reserves in the General Fund to cover the cost of the projects until the financing can be completed
Reimbursement resolution does not obligate the City to issue bonds; simply preserves the option for the City to reimburse from bond proceeds for prior project expenditures
The IRS requires adoption of a resolution within 60 days of when the first expenses are paid from City reserves;
3 255
Questions?
4 256

FINANCE AND GOVERNANCE COMMITTEE

AGENDA REPORT

REPORTS
AGENDA ITEM NO. D.8

DATE: May 23, 2023

TO: Finance & Governance Committee

FROM: Mark Sewell, Assistant Chief Financial Officer, 805-385-7851, [email protected]

SUBJECT: Proposed Fiscal Year 2023-24 Budget. (20 minutes)

RECOMMENDATION

That the Finance and Governance Committee recommend that City Council and Housing Authority Board conduct a public hearing on the Fiscal Year (FY) 2023-24 proposed budget on June 6, 2023, for the City of Oxnard and Oxnard Housing Authority and provide staff direction regarding any adjustments to the proposed budget, in preparation for final budget adoption on June 20, 2023.

Please click the following link to view the required Measure M pre-recorded presentation video titled Fiscal Year 2023-2024 Budget Preview: https://youtu.be/1pkzfbZSYHE

BACKGROUND

In addition to the Measure M video, on May 11, 2023, a budget preview video and podcast was published for public viewing (available at https://youtu.be/zhxxf1qMmxc). The proposed budget as provided in the presentation outlines information on where the City of Oxnard prioritizes in providing services and infrastructure to its residents.

This agenda report covers the projected revenues, expenditures and available fund balances for the City's five major funds, including General Fund, Measure O (Half- Cent Sales Tax) Fund, Water Fund, Wastewater Fund, and Environmental Resources (solid waste) Fund. The Citywide proposed budget is approximately $604.8 million, which includes the General Fund group, landscape maintenance and community facilities district funds, special revenue funds, assessment district funds, enterprise funds, internal service funds and Housing Authority funds. The total budget appropriation amount will include transfers to capital projects amounting to $48.7 million.

The figures presented are preliminary and may be revised between the May 23, 2023, Finance and Governance Committee and the June 6, 2023, City Council/Housing Authority Board public hearing. Significant changes are not anticipated; however, adjustments may be made to reflect the most current available information.

Numerical values included in the narrative below may not add due to rounding.

DISCUSSION

257
Over the last couple of years, the City has been on a path to restoring services by maintaining adequate public safety, restoring proper paving street cycles and maintaining financial stability. For the FY 2023-24 proposed budget, staff acknowledge challenges including supply chain disruptions, inflation, labor shortages and the Aaron Starr bonding litigation. These challenges have forced the City to slow the pace in terms of restoring programs and investing in infrastructure and enhancing the quality of life. As a result, there have been limited additions of ongoing programs and one-time projects in the budget. The additions and one-time projects are described in the following major fund areas.

In developing the proposed budget for FY 2023-24, careful consideration was given to maintaining and improving the financial position of the City of Oxnard. Oxnard is currently rated A+, which is slightly lower than neighboring communities such as City of Camarillo, City of Thousand Oaks and City of Ventura. Credit ratings are important as they affect the price paid to finance infrastructure and reflects financial management practices and resiliency in maintaining city services.

The following is information about the FY 2023-24 proposed budget for each of the major funds. There are few changes to the Enterprise funds including Water, Wastewater and Environmental Resources, as the expenditures remain similar to last year’s budget. Capital programs have slowed due to supply chain issues, labor shortages and ensuring revenues are aligned.

General Fund (101)

Revenues: General Fund revenues are projected at $219.7 million, $11.5 million (5.5%) greater than the prior year Adopted Budget. The projected change is primarily due to a $9.2 million increase in sales tax revenues.

This includes the 1% Bradley Burns sales tax and the 1.5% Measure E sales and use tax. The region and City continue to recover from the pandemic-induced recession and the purchase cost of goods and services increase due to global inflationary pressures. Fuel, vehicle-related and business services are the strongest sectors.

Property values have leveled off in 2023; the median home price in Oxnard decreased 0.28% to $700,000 in January 2023 compared to January 2022. However, since January 2020, the median home price in Oxnard is up 21.4% or $123,500. Continuing high inflation allows for the maximum allowable increase in assessed value under Proposition 13. The City’s revenue projection for its portion of levied property tax for FY 2023-24 is projected to grow by $2 million (3.1%) to $68.8 million.

Transient occupancy (hotel) tax revenue is projected to return to pre-pandemic levels at $5.5 million in FY 2023-24. Finally, service fees and charges are projected to be similar to last fiscal year at $5.8 million in total.

Expenditures: General Fund expenditures are projected at $231.5 million; $15.3 million (7.1%) higher than FY 2022-23 Adopted Budget. The increase, overall, is related to the City’s focus on public safety, investment in infrastructure, inflation and partial restoration of services. Of the $231.5 million, there is about $3 million of additional funds for ongoing programs, mostly for public safety, information technology and public works.

There is also about $12.4 million of new one-time projects, including $2.7 million in a land acquisition, $1.7 million for the General Plan, $1.0 million from departments and $7.0 million for capital projects being cash funded given the City’s constraints due to litigation involving the issuance of bonds. The two projects being funded with cash include streets for $4.0 million (in addition to Measure O and Gas Tax cash funding) and the Enterprise Resource Project for $3.0 million. Cash funding these projects is limiting the City’s ability to restore programs.

These increases are offset by $11.0 million of anticipated net personnel savings resulting from unfilled positions. The vacancy savings are based on recent trends experienced by the City. Vacancy rates are significant due to labor shortages that are being experienced throughout the country. The assumption may decrease in the future, but staff is forecasting FY 23-24 to be very similar to recent trends. The Human Resources Department continues to face significant hiring challenges with rising wages and increased 258
competition due to low unemployment as well as the Great Resignation. As of March, there were 201 vacant authorized positions throughout the City with a vacancy rate of 14 percent. The Finance Department recommends incorporating a modest assumption of vacancies into the City’s annual General Fund budget. For FY 2023-24 an $11.0 million proposed vacancy savings represents a 9.25% vacancy rate compared to the FY 2022-23 assumption of 6%.

FY 2023-24 Ending Available Fund Balance: The estimated fund balance assumes the fund balance at the end of FY 2022-23 will be $53.0 million. The fund balance of $53.0 million with $219.7 million in revenues less $231.5 million of expenditures will result in a difference of $11.7 million. The fund balance is adjusted further to reflect future liability payments of $1.9 million resulting in an estimated FY 2023-24 ending available fund balance of $39.4 million, which is above the current policy of maintaining reserves of 12%.

The City Council’s current policy is for a General Fund reserve (available ending fund balance) of 12% of the General Fund's operating budget. Staff is proposing a change in the financial policies to increase the target one percent each year, commencing with the FY 2023-24 budget, until the target percentage is 16.6%, representing approximately two months' average expenditure. One percent per year would set the policy at 16.6% by FY 2027-28. The available fund balance would only include reserves that are “assigned” and “unrestricted” as defined by Government Accounting Standards Board Statement Number 54. See the proposed resolution for Financial Policies as part of Attachments. This resolution is identical to the one with the same title in FY 2022- 23, with two exceptions. First, on page 5, section IV (Fund Balance Policy), staff added the phrase "economic downturns" to the opening paragraph. Second, on page 6, section V (Reserve Policies), we edited the first sentence of subsection B, which used to state, "The City Council will endeavor to maintain an operation reserve equal to 12 percent (12%) of the General Fund operating budget."

For additional detail, refer to the General Fund tables in attached Additional Information on FY 2023-24 Proposed Budget.

Measure O Fund (104)

Revenues: FY 2023-24 revenue from the Measure O half-cent sales (transactions and use) tax is projected at $20.1 million, a $1.9 million (11.0%) increase over the FY 2022-23 budget. Adding $90,000 of interest income and the annual $1.9 million repayment by the General Fund for the 2015 loan made by the Measure O Fund produces total projected revenue of $22.1 million for the budget year.

Expenditures: Long term planning has to incorporate that the Measure O half-cent sales tax will terminate in FY 28-29. The Measure O Committee recommended on April 28, 2022, and Council adopted on June 7, 2022, a Measure O Weaning Schedule to ensure we are slowly and methodically moving Measure O funded ongoing programs to an alternative source such as the General Fund. The focus of any new additions to the Measure O fund is for one-time projects. In FY 2023-24, as previously planned, staff is weaning Enhancing Community Policing (currently $3.8 million) and the Homeless Program (currently $1.1 million) from Measure O to the General Fund and is investing another $2.3 million toward Citywide Alleyway Resurfacing.

Staff had previously recommended prepaying the Station 8 bonds. However, the staff’s proposed plan below for one-time expenditures out of Measure O does not leave enough of a fund balance in Measure O to prepay the Fire Station 8 bonds.

Continuing to wean ongoing programs from Measure O as planned and delaying pre-payment of outstanding debt allows the City to add one-time projects for FY 2023-24. The funding from Measure O will allow the City to provide community programs as the City navigates bond litigation and a possible downturn in the economy. Additional one-time projects recommended by the Measure O Committee on April 27, 2023, include: portable stormwater pump ($80,000), Joint Use Agreement between West Village Park and Brekke Elementary School ($425,000), Personal Protective Equipment ($160,000), facility emergency backup 259
generator ($800,000), matching funds for FEMA grants for Fire Department ($186,000) and Information Technology consultants/staff augmentation ($1.3 million). Also included in the Measure O Fund is $10.5 million of street projects being funded with cash that was originally going to be financed by issuing bonds (in addition to the cash funding for streets in the General Fund and Gas Tax).

Fund balance: The FY 2023-24 Measure O Fund forecast assumes a starting available fund balance at July 1, 2023, of $16.2 million, projections for Measure O Fund revenues ($22.1 million) and expenditures ($24.3 million), which includes the additional projects above would result in a projected available ending fund balance at June 30, 2024, of $14 million. The ending fund balance as of June 30, 2024, along with the Weaning Schedule, is adequate to support paying down debt in future years.

For additional detail, refer to the Measure O tables in attached Additional Information on FY 2023-24 Proposed Annual Budget.

Water Funds

Revenues: FY 2023-24 Water Fund revenues, of which approximately 90% result from utility fees paid by users, are projected to total $68.8 million, $0.7 million (1.0%) lower than the prior year's budget. The projected change is primarily due to reduction in the need of revenue to be used to fund Capital Improvement Projects (CIP) and the Infrastructure Use Fee Repayment being slightly less than the prior year by $0.2 million due to the decrease in total reimbursement to all Utility Funds from $10.0 million to $9.5 million. Further, the proposed revenues are based on water rates currently effective and do not include any rate increases pending approval by City Council as of the writing of this report (on May 15, 2023).

Expenditures: FY 2023-24 Water Fund expenditures are proposed at $69.9 million, which is $15.3 million lower than the Adopted Budget for FY 2022-23. Most of this decrease is related to capital projects that are paused until there is a decision on future rate increases for the Water Fund.

Available Fund Balance: The total projected fund balance at June 30, 2023, is projected to be $22.7 million. Projected revenues for FY 2023-24, less the proposed expenditures, suggest a net operating deficit of $1.0 million. The projected net operating deficit subtracted from the projected beginning available fund balance yields a projected ending available fund balance at June 30, 2024, of $21.7 million. The fund balance of $21.7 million is inclusive of all funds: the impact fund, water resource acquisition fund, capital facility fund, water security and contamination fund and operating fund. The operating fund balance is estimated to be only $5.0 million for the end of the current FY 2022-23. This is far below the target of 25% reserve fund required for future financing from the Water Infrastructure Finance and Innovation Act (WIFIA) program. Rate increases are necessary to maintain infrastructure, continue current operations and increase the fund balance in future years.

At the time of the writing of this report, the water rate adjustment is pending approval from the City Council. In the future, the Public Works Department will bring forward a revised budget appropriation reflecting the City Council's decision on water rate adjustments.

For additional detail, refer to the Water Fund tables in attached Additional Information on FY 2023-24 Proposed Annual Budget.

Wastewater Funds

Revenues: FY 2023-24 Wastewater Fund revenues are projected to total $50.4 million. Over 92% of Wastewater Fund revenue is from utility fees paid by users. There is a slight decrease in utility fees paid by users resulting from ongoing conservation measures. Total revenues have decreased $16.8 million primarily due to reduction in the need for revenue to be used to fund capital projects. 260

Expenditures: FY 2023-24 Wastewater Fund expenditures are proposed at $55.4 million, including a decrease of $19.6 million for CIP projects from delaying the capital expenditure budget as existing capital projects are completed.

Available Fund Balance: Projected revenues for FY 2023-24, less the proposed expenditures, suggest a net operating deficit of $5.0 million. The projected net operating deficit subtracted from the projected beginning available fund balance at June 30, 2023, of $53.8 million yields a projected ending available fund balance at June 30, 2024, of $48.8 million. The City Council policy target for available fund balance is 25%, which has been exceeded due to delayed capital projects and the City's recent success in securing grants and low-interest loans from the State to pay for wastewater capital improvement projects. Furthermore, that fund balance will be used to pay for the longer-range capital improvement program required by the wastewater enterprise.

For additional detail, refer to the Wastewater Fund tables in attached Additional Information on FY 2023-24 Proposed Annual Budget.

Environmental Resources Funds:

Revenues: FY 2023-24 Environmental Resources Fund revenues are projected to total $49.1 million. Nearly all of the revenue is paid by users through utility fees. Revenues are anticipated to be similar as compared to total revenues in the FY 2022-23 Adopted Budget of $49.7 million. The slight decrease of $0.6 million is mostly in utility fees primarily resulting from a slowdown in growth.

Residential and commercial collections are anticipated to remain flat. A decrease in revenue from recyclables reflects an ongoing decline in market prices combined with a more competitive market. Area recycling centers have redirected their volume from the City’s Del Norte Facility to other processing facilities.

Expenditures: FY 2023-24 Environmental Resources Fund expenditures are proposed at $57.3 million, a $0.2 million increase compared to the FY 2022-23 Adopted Budget. Most of the increase is related to higher than anticipated overtime and higher fuel prices .

Available Fund Balance: The projected net operating deficit of $8.2 million subtracted from the projected beginning available fund balance, at June 30, 2023, of $14.4 million yields a projected ending available fund balance at June 30, 2024, of $6.2 million, which represents 10.9% of annual expenditures and which is below the City Council policy target for available fund balance of 25%.

For additional detail, refer to the Environmental Resources Fund tables in the attached Additional Information on FY 2023-24 Proposed Annual Budget.

STRATEGIC PRIORITIES

This agenda item is a routine operational item and does not relate to the five strategic priorities adopted by City Council on March 16, 2021.

FINANCIAL IMPACT

Conducting a public hearing on the budget does not have a financial impact until such time as the City Council adopts the FY 2023-24 Operating Budget, which is scheduled for June 20, 2023. The financial impact of each recommended action is described in the applicable discussion section.

The preliminary proposed budget document is scheduled to be published on the City's website on Wednesday, May 25, 2023, at https://www.oxnard.org/city-department/finance/city-budget-documents/. 261

Prepared by: Denise Olson, Interim Chief Financial Officer

ATTACHMENTS

1. Resolution Establishing Financial Management Policies (FY2023-24)

2. Presentation: Fiscal Year 2023-2024 Budget Preview

3. Presentation: Additional Information on Fiscal Year 2023-24 Proposed Annual Budget

262

CITYCOUNCILOFTHECITYOFOXNARD
RESOLUTIONNO.________

ARESOLUTIONOFTHECITYCOUNCILOFTHECITYOFOXNARDESTABLISHINGFINANCIALMANAGEMENTPOLICIES WHEREAS,theCityCouncilwishestoestablishfinancialmanagementpoliciestobefollowedinthedevelopmentandimplementationoftheCitybudget.

NOW, THEREFORE,theCityCounciloftheCityofOxnardherebyresolvesthatthefollowingpolicieswillguidethedevelopmentandimplementationoftheCity’sOperatingandCapitalImprovementProjectBudgets.

I.BUDGETPOLICIES
A. BudgetGuidelines
1) TheCityManagerwillprepareamulti-yearrevenueandexpenditureforecast,whichwillprovideparametersforthebudgetdevelopmentprocess. 2) Thebudgetprocesswillincludethedevelopmentofabalancedtwo-yearbudgetwhenfinancialcircumstancesareappropriateforatwo-yearbudget.Anytwo-yearbudgetwillincludeanapproachthatCityCouncilapprovesappropriationsfora one-yearoperatingbudgetandcapitalimprovementplan. 3) Thebudgetwillbeorganizedinadepartment/servicelevelformat. 4) Thebudgetdevelopmentprocesswillincludetheidentificationandevaluationofpolicyoptionsforservicelevels.However, theadoptedbudgetwillincludeonlythosepolicyoptionsapprovedbytheCityCouncil.

B. AppropriationPriorities

1. Inevaluatingthelevelofappropriationsfordepartmentenhancements,orexpensereductions,staffwillapplythefollowingprinciplesinthepriorityordergiven:
a. Essentialservicesthatprovideforthehealth,safetyandwelfareofresidents. b. Contractualobligationstobondholdersandotherdebts.
c. Adequateongoingmaintenanceoffacilitiesandequipment.
d. Allotherservices.

2. Whenreductionsinpersonnelarenecessarytoreduceexpenditures,tothegreatestextentpossiblethiswillbeaccomplishedthroughnormalattrition. 263
ResolutionNo.Page2C. SupplementalServices
TheCityCouncilmaybudgetforcertainservicesthatmayalsobeprovidedbyothergovernmentalagenciesortheprivatesector. Theprovisionoftheseserviceswillbebasedonademonstratedcommunityneedorbenefitovertime.Whenappropriate,theseserviceswillbesupportedinwholeorinpartbyuserfees.

D. AppropriationChanges

1. ChangestotheCityCounciladoptedbudgetforthefiscalyearshalloccurasfollows:

2. By CityCouncilactionforall changesthateitherincreaseor decreasefundorsubfundappropriationsadoptedintheannualbudgetappropriationresolution.

3. BytheCityManagerforappropriationtransfersbetweendepartmentswithinafundorsubfund.

4. BytheDepartmentDirectorforappropriationtransfersbetweenprogramswithinthesamefundorsubfund,aslongasfundingisavailableinthedepartmentasawhole.

II.CAPITALIMPROVEMENTPROGRAMPOLICIES
A. CapitalPlanningPeriod

1. Staff willbudgetallcapitalimprovementsin accordancewithanadoptedCapitalImprovementProgram(CIP).

2. TheCity’s long-rangecapitalplanningperiodwillbea minimumoffiveyears,orlongerwhereappropriate.

3. TheFive-YearCapitalImprovementProgramwillbereviewedandapprovedbyCityCouncilona two-yearcycle,ormorefrequently, asneededbasedoneconomicandfundingoutlooks.Individualprojectswillbepostponedorcancelediftheirfundingfailstomaterialize.Conversely, individualprojectsmaybemoveduponthetimelineif theirfundingmaterializessoonerthananticipated.CityCouncilwillreviewandapproveappropriationsat leastannually, andalsoasnecessaryduringtheyeariffundingandtimelineschange.Appropriationchangeswillbein accordancewithSectionI.D.

4. TheCIPwillbe in conformancewithandsupporttheCity’s majorplanningdocuments:themostcurrentGeneralPlan,projectspecificplans,andcitywidemasterplansforrelatedinfrastructureimprovements.

5. PublicWorks staff will preparestrategicplansand masterplansfor majorinfrastructureandutilityimprovementswitha10-or20-yearplanninghorizonwhenappropriate. 264
ResolutionNo.Page3

6. ForCIPprojectspaidforbytheGeneralFund,theFinanceDepartmentwilltransferCouncil-approvedappropriationsfromtheGeneralFundtothecapitalprojectfundfromwhichthecapitalexpendituresaretobemade.Mostoften,thiswillbeFund301CapitalOutlay. Suchtransferswillbemadeonlyasactualexpendituresoccur,notonafixedregularschedule.Anytransferauthorizedbutnotyetmadeattheendofthefiscalyearwillbecarried-forwardintothenextfiscalyear(s)untilprojecthasbeencompleted.

7. To theextentfundsareavailable,anyunusedappropriationsattheendofthefiscalyearinactiveCIPprojectswillbecarried-forwardintothenextfiscalyear(s)untiltheprojecthasbeencompleted.

8. Anyunusedfundsafterthecompletionoftheproject,willbereturnedtothefundingsource.Thisshouldhappenwithin90-daysofnotificationtotheFinancedepartment.

B. CapitalProjectPriorities

1. PublicWorksstaff willevaluateandprioritizeeachproposedcapitalprojectagainstthefollowingcriteria:
a. HealthandSafety:Projectsneededto maintainor improvehumanhealthorsafety. b. AssetPreservation:Projectsneededto maintainorprotecttheCity’s existingassets. c. NeworExpandedServices:Projectsthatcreatesomethingnew, likeanewpark,orincreasethecapacityofexistingfacilities,likelargerwaterorsewerlines.

C. CapitalProjectManagementbythePublicWorksDepartment

1. Capitalprojectswillbemanagedinaphasedapproachasneeded.Theprojectphaseswillbecomeaframeworkforappropriatedecisionpointsandreporting.Thephasingwillconsistof:
a. Conceptual/schematicproposalb. Preliminarydesignandcostestimatec. Engineeringandfinaldesignd. Bidadministratione. Acquisition/constructionf. Projectcloseout

2. Eachcapitalimprovementprojectwillhaveaprojectmanagerwhowillpreparetheprojectproposal,ensurethatrequiredphasesarecompletedonschedule,authorizepaymentofexpendituresasrequiredbytheCity’sPurchasingManual,ensurethatall 265
ResolutionNo.Page4 regulationsandlawsareobserved,periodicallyreportprojectstatus,trackprojectexpendituresandperformtheprojectcloseoutaccordingtocurrentprocedures.

III.REVENUEPOLICIES
A. MaintenanceofRevenues

1. TheCityCouncilwillattempttomaintaina diversifiedandstablerevenuebasetosheltertheCityfromshorttermfluctuationsinanyonerevenuesource.

2. TheCityCouncilwillpromotean increasein theCity’s revenuebasethrougheconomicdevelopmentprogramsthat maintainand enhancea vigorouslocaleconomy.

3. TheCityCouncilwillseekto supplementtheCity’s revenuebasethroughtheidentificationofandapplicationforStateandfederalgrantfunds,whichwillsupportidentifiedneeds.

B. UserFeesandRates

1. TheCityCouncilwillattemptto recoverthecostsofservicesprovidinga privatebenefittousersthroughtheimpositionofuserfeesandcharges.

2. TheCityCouncilwillestablishalluserfeesandchargesatalevelrelatedtothedirectandindirectcostsof providingservicesandthedegreeof publicversusprivatebenefit.

3. Staff willrecalculateperiodicallythefullcostsofactivitiessupportedbyuserfeesandratestoidentifytheimpactofinflationandothercostincreases.

4. TheCityCouncilwillset feesanduserratesfor eachenterprisefund(water,wastewater, environmentalresources)atalevelthatfullysupportsthetotaldirectandindirectcostsoftheactivity.

C. RevenueCollection

1. Staffwilltakeallcosteffectiveactionsavailabletocollectrevenues.

2. Staff willgrantuserfeewaiversanddebtforgivenessonlyasauthorizedbyCityCouncilapprovedpolicies.

3. Staffwillnotgrantdevelopmentandpermitfeewaivers.

D. InterestEarnings
266
ResolutionNo.Page51. Staff willassigninterestearningstotheappropriatefunds,whererequired,basedoninvestedcashbalances.

2. Investmentpolicieswillbe reviewedannuallyby theFinanceandGovernanceCommittee.

IV. FUNDBALANCEPOLICY
ThisFundBalancePolicyestablishestheproceduresforreportingunrestrictedfundbalanceintheGeneralFundfinancialstatements.Certaincommitmentsandassignmentsoffundbalancewillhelpensurethattherewillbe adequatefinancialresourcesto protecttheCityagainstunforeseencircumstances,economicdownturnsandeventssuchas revenueshortfallsandunanticipatedexpenditures.ThepolicyalsoauthorizesanddirectstheChiefFinancialOfficertopreparefinancialreportswhichcategorizefundbalancein accordancewithGovernmentalAccountingStandardsBoard(GASB)StatementNo. 54, FundBalanceReportingandGovernmentalFundTypeDefinitions.

A. Procedures
Fundbalanceis essentiallythedifferencebetweentheassetsandliabilitiesreportedin agovernmentalfund.Therearefiveseparatecomponentsoffundbalance,eachofwhichidentifiestheextenttowhichtheCityisboundtohonorconstraintsonthespecificpurposesforwhichamountscanbespent. • Non-spendable• Restricted• Committed• Assigned• Unassigned Thefirsttwocomponentslistedabovearenotaddressedinthispolicyduetothenatureoftheirrestrictions.Anexampleof non-spendablefundbalanceis a prepaiditem.Restrictedfundbalanceiseitherimposedbylaworconstrainedbygrantors,contributors,orlawsorregulationsofothergovernments.Thispolicyisfocusedonfinancialreportingofunrestrictedfundbalance,orthelastthreecomponentslistedabove.Thesethreecomponentsarefurtherdefinedbelow.

B. CommittedFundBalance
TheCityCouncil,astheCity’s highestlevelofdecision-makingauthority, maycommitfundbalanceforspecificpurposespursuanttoconstraintsimposedbyformalactionstaken,suchasordinanceorresolution.ThesecommittedamountscannotbeusedforanyotherpurposesunlesstheCityCouncilremovesorchangesthespecifiedusebytakingthesametypeofactionitemployedtocommitthoseamounts.CityCouncilactiontocommitfundbalanceshouldoccurwithinthefiscalreportingperiod;howevertheamountcanbedeterminedinthesubsequentperiod. 267
ResolutionNo.Page6C. AssignedFundBalance

1. AmountsthatareconstrainedbytheCity’sintenttobeusedforspecificpurposes,butareneitherrestrictednorcommitted,shouldbereportedasassignedfundbalance.

2. ThispolicyherebydesignatestheauthoritytoassignamountstobeusedforspecificpurposestotheChiefFinancialOfficerforthepurposeofreportingtheseamountsintheannualfinancialstatements.

D. UnassignedFundBalance
Theseareresidualpositivenetresourcesofthegeneralfundinexcessofwhatcanbeproperlyclassifiedinoneoftheotherfourcategories.

V. RESERVEPOLICIES
A. Adequatereserveswillbe maintainedfor all knownliabilities,includingpayableemployeeleavebalances,workers’compensation,andself-insuredretentionlimits.

B. TheCityCouncilwillendeavortomaintainanoperatingreserveequaltoa minimum13%oftheGeneralFundoperatingbudget,increasingto16.6%inannualonepercentincrementsbeginningin FY2023-24.InFY2027-28,theUnrestrictedFundBalanceshouldbe at a minimumof 16.6%,whichis equalto approximatelytwomonthsofoperatingexpenses.Theoperatingreserveshallbe availableto: covercashflowrequirements;meetunanticipatedrevenueshortfalls;takeadvantageof unexpectedopportunities;investinprojectswitharapidpayback;ensureagainstphysicalornaturaldisasters;andprovideinterestearnings.

C. TheCityCouncilwillendeavortomaintainoperatingreservesintheutilityfundsequalto25percent(25%)oftheoperatingbudgets.

VI. INTERFUNDBORROWINGPOLICIES
A. InterfundborrowingrequiresCityCouncilapproval.

B. Suchloanswillcarryamarketrateofinterest.

C. Suchloansmay, at CityCouncil’s discretion,includeinterest-onlypaymentsbytheborrowingfundforthefirstyearortwo.

D. Onceprincipalrepaymentsbegin,amortizationscheduleswillbeforlevelordecreasingannualdebtservice,notforincreasingannualdebtservice.

E. Theborrowingfundmayprepayalloraportionoftheprincipalandinterestatanytime,withoutpenalty. 268
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F. Thelendingfundmaycallallorpartoftheloanimmediatelyat thelendingfund’sdiscretion,alsowithoutpenalty.

VII. DEBTPOLICIES
A. UseofDebt

1. AnyuseoftaxandrevenueanticipationborrowingwillbeconsistentwithStateandfederallawsandregulations.

B. ConditionsofUse

1. TheCityCouncilwilluselongtermdebttofinancealandpurchase,majorequipmentacquisition,acapitalproject,orreserveonlyifacost/benefitanalysisestablishesthatthefinancialandcommunitybenefitsofthefinancingexceedthecosts.

2. Benefitscaninclude,butarenotlimitedto,thefollowing:
a. Presentvaluebenefit:Thecurrentcostplusthefinancingcostislessthanthefuturecostoftheprojectoracquisition. b. Maintenancevaluebenefit:Thefinancingcostislessthanthemaintenancecostofdeferringtheprojectoracquisition. c. Equitybenefit:Financingprovidesamethodofspreadingthecostofaprojectoracquisitionbacktotheusersoftheprojectoracquisitionovertime. d. Communitybenefit:DebtfinancingoftheprojectoracquisitionenablestheCityCounciltomeetanimmediatecommunityneed.

3. Debtfinancingwillbeusedonlywhenprojectrevenuesorotheridentifiedrevenuesourcesaresufficienttoservicethetermofthedebt.

4. TheCityCouncilbyresolutionwillperiodicallyestablishindustrystandardbonddebtratiostoassessmaximumdebtcarryingcapacityandwillapplytheseratiostoeachproposeddebt.

5. WhentheCityobtainsdebtfinancingonbehalfoforbenefitingathirdparty(aswithassessmentdistricts)suchdebtwillbe issuedin conformancewithexistingCityCouncilprioritiesandpolicieswithoutcontingentliabilityoftheCityandwithallcostsofissuanceandadministrationfullyreimbursedbythethirdparty.

C. Methods

1. Staffwillretainthefollowingcontractadvisorsfortheissuanceofdebt:
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a. BondCounsel-TobeselectedbyRFPperiodically.
b. DisclosureCounsel–TobeselectedbyRFPperiodically.
c. SpecialCounsel- TobeselectedbyRFPperiodicallytoprotecttheCity’sinterestincomplexnegotiationsanddocumentreview. d. MunicipalAdvisor- To beselectedbyRFPperiodicallyto assisttheCityinassessingfinancingopportunitiesand options,selectionof underwriters,preparationof all requiredfinancingdocuments,andotherfinancialadvisoryassistanceasrequired. e. Underwriters- TobeselectedperiodicallybyRFPfornegotiatedfinancings.Forbondissuesthatarecompetitivelybid,underwriterwillbeselectedonthebasisoflowesttrueinterestcost(TIC).

2. TheCityCouncil’s preferenceistoissuefixedrate,long-termdebtwithleveldebtservice,butvariableratedebtorotherdebtservicestructuremaybeconsideredifaneconomicadvantageisidentifiedforaparticularproject.

3. Bondproceedswillbeheldbyanindependentbankactingastrusteeorfiscalagent.

4. TheCityCouncil’s bondratingobjectivefortheCityforalldebtissuesisaStandard&Poor’s ratingofAA.Creditenhancementswillbeusedtoachievehigherratingswhenthereisaneconomicbenefit.

VIII. ACCOUNTINGPOLICIES
A. AccountingStandards

1. TheCity’s accountingsystemsandprocedureswillcomplywithGenerallyAcceptedAccountingPrinciples(GAAP)andtheGovernmentalAccountingStandardsBoard(GASB)totheextentnecessarytoachieveanunmodifiedauditopinionandadequateinternalcontrols.

2. TheCityhasadoptedthehistoricalcostmethodoffixedassetreportingtocomplywithGASB.Thecapitalizationpolicyis$5,000ormoreforequipment,$20,000forbuildingsandimprovementsotherthanbuildings,and$100,000forinfrastructure.

3. Staff willpreparequarterlyandannualfinancialreportsto presenta summaryoffinancialperformanceandpositionformajoroperatingfunds.

4. Staff willprovidefulldisclosurein the annualfinancialstatementsandbondrepresentations. 270
ResolutionNo.Page9
B. IndependentAuditor

1. TheCitywillretainanindependentcertifiedauditingfirmtoannuallyconductanauditofthefinancialrecordsinaccordancewithallstateandfederalrequirements.

2. Theselectionof theCity’s auditfirmwillbebyanRFPsubmittedto a limitednumberofqualifiedauditfirmswithrecognizedcredentialsinmunicipalauditing.

3. Inordertopromotecontinuityintheauditprocess,theengagementoftheauditfirmwillbefora minimumperiodofthreeyears.Suchthree-yearengagementmaybeextendedonanannualbasisattheoptionoftheCityManager.

IX. RISKMANAGEMENTPOLICIES
A. TheCitywillmaintaina riskmanagementprogramfor publicliability, workers’compensation,andlossof propertyexposures.Thisprogramwillemphasizethepreventionandavoidanceofrisk,wheneverpossible,fundingforlosseswhichcannotbeavoided,andtransferofrisktothirdpartieswheneverappropriate.

B. Theriskmanagementprocesswillincludethesystematicandcontinuousidentificationoflossperilsandexposures,theanalysisoftheseperilsandexposuresintermsoffrequencyandseverityprobabilities,theapplicationof soundriskcontrolproceduresandthefinancingofriskconsistentwiththeCity’sfinancialresources.

C. IfthelosspotentialindollarsforaparticularriskissubstantialandcannotbeabsorbedwithintheCity’s annualoperatingbudget,thestaff willdevelopandmaintainaprogramofpurchasedinsurance,fundedself-insurance,ordebt.

D. Staff willendeavortopromptlysettlejustifiedclaimsbutwillvigorouslydefendclaimswhicharedoubtful,frivolous,orunsupported.

E. Staff willmaintainseparateself-insurancefundstoidentifyandsegregatethefinancialresourcesnecessarytocoverinsurancepremiumsandself-insuredretentions.

1. Revenuesintotheinsurancefundswillbegeneratedbychargestooperatingprogramsallocatedtoreflectlossexperience.

2. Resourceswillbeestablishedattheendofeachyeartofundliabilityforopenclaims,incurredbutnotreportedclaims,anda catastrophiclossreserveas periodicallyrecommendedbyanindependentactuarialconsultant,orasauthorizedforGAAP.

3. TheConfidenceIntervalforallriskmanagementreservefundswillbemaintainedataminimumof50%confidenceinterval.

F. Toassistintheoveralladministrationoftheriskmanagementprogram,theCityCouncilwillutilizethefollowingconsultants:
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1. Claimsadjusterforworkers’compensationandpublicliability/propertydamage.2. Claimsauditor, actuarialconsultant,andriskmanagementprogramauditor.3. Insurancebrokerofrecord. 272
ResolutionNo.Page11X. DEVELOPERDEPOSITPOLICIES
A. TheCitycollectsdeveloperdepositsoftenidentifiedinadevelopmentagreement(DA)and/orownershipparticipationagreement(OPA),alongwithdeveloperdepositsanddepositbasedfeesassociatedwithBuildingandPlanningpermits.ThedeveloperdepositsanddepositbasedfeesareusedbytheCityforcostsassociatedwithprojectreviewandconceptualplanning,Citystaff time,andotherthirdpartyservicesrequiredfortheproject,including,butnotlimitedto,contractplanning,engineering,architectural,onsiteposting,legaladvertising,andattorneyreview. Aschargespertainingto theprojectaccrue,theDepartmentshallkeeprecordsof actualstaff timeandcostsofconsultantandotherthirdpartyserviceprovidersused.

B. TotheextenttheCityreceivesdepositsfromdevelopersasadvancedpaymentstocoverstaff timeand third-party expensesrequiredtoissuepermits,andthesedepositswerenotaccountedfor in the AdoptedBudget,theCouncilauthorizestheCityManagertoadministrativelyappropriatefundsto therelevanttrackingprojectandexpenditureaccountswithintheDeveloper&OtherDepositsFund [Fund541] uptotheamountofthedepositsreceived.

PASSEDANDADOPTEDonthisX
th
dayofJune,2023,bythefollowingvote:

AYES:

NOES:

ABSENT:

JohnC.Zaragoza,Mayor
ATTEST:

RoseChaparro,CityClerk
APPROVEDASTOFORM:
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StephenM.Fischer,CityAttorney
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FISCAL YEAR 2023-24

PROPOSED ANNUAL BUDGET
Finance and Governance Committee
May 23, 2023
Additional Information on
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That the Finance and Governance Committee recommend the City Council and Housing Authority Board conduct a public hearing on the Fiscal Year (FY) 2023-24 proposed budget on June 6, 2023, for the City of Oxnard and Oxnard Housing Authority and provide staff direction regarding any adjustments to the proposed budget, in preparation for final budget adoption on June 20, 2023.

RECOMMENDATION 2
320
GENERAL FUND (101) REVENUES (IN MILLIONS) 3
Totals may not add due to rounding
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GENERAL FUND (101) EXPENDITURES (IN MILLIONS) 4
Totals may not add due to rounding
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GENERAL FUND (101) PROJECTED FUND BALANCE (IN MILLIONS) 5 323
MEASURE O FUND (IN MILLIONS) 6
Totals may not add due to rounding
* Beginning Fund Balance includes $3.9 million of carry-over from FY21-22 324
WATER FUNDS (IN MILLIONS) 7
Totals may not add due to rounding* Includes restrictive use and operating Funds *
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WASTEWATER FUNDS (IN MILLIONS) 8
Totals may not add due to rounding
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ENVIRONMENTAL RESOURCES FUNDS (IN MILLIONS) 9
Totals may not add due to rounding
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That the Finance and Governance Committee recommend the City Council and Housing Authority Board conduct a public hearing on the Fiscal Year (FY) 2023-24 proposed budget on June 6, 2023, for the City of Oxnard and Oxnard Housing Authority and provide staff direction regarding any adjustments to the proposed budget, in preparation for final budget adoption on June 20, 2023.

RECOMMENDATION 10
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END OF PRESENTATION
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Finance & Governance CommitteeMay 23, 2023

Finance & Governance Committee
May 23, 2023