the portfolio to five years, and by structuring the portfolio with an adequate mix of highly liquid securities and maturities to meet major cash outflow requirements.
B. LIQUIDITY
Maturity dates of investments will be timed to assure that funds are available for payment obligations that may be reasonably anticipated. Liquidity refers to the ability to sell investments at any given moment while minimizing the chance of losing some portion of principal . Since all possible cas h demands cannot be anticipated, the portfolio should consist largely of liquid securities with active secondary or resale markets.
Furthermore, the City shall maintain short term investments which offer same day liquidity for short-term funds.
C. RETURN ON INVESTMENTS
The City of Vallejo’s investment portfolio shall be designed with the objective of attaining a benchmark rate of return throughout budgetary and economic cycles, commensurate with the City’s investment risk constraints and the cash flow characteristics of the portfolio. Return on investments is subordinate to the requirements of safety and liquidity. The core of investments is limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed.
7.0 PERFORMANCE STANDARDS
In order to assist in the evaluation of the portfolios’ performance, the City will employ a relevant performance benchmark for the portfolio consistent with the Investment Policy mandated maturity, quality and concentration constraints. Useful comparative benchmarks of the City’s portfolio performance will be the quarter-to-date LAIF apportionment rate, and the two-year U.S.
Treasury Note yield. This maturity range is an appropriate benchmark based on the objectives of the City and the investment constraints set forth herein . Since return on investment is not the most important objective of the portfolio, the benchmark will be used solely as a reference tool. The reporting of a benchmark does not imply that the City Treasurer will add additional investment risk to the portfolio in order to attain or exceed the benchmark. Whenever possible, and consistent with risk limitations as defined herein and prudent investment principles, the Treasurer shall seek to augment returns above the risk free rate of return.
8.0 DIVERSIFICATION
The City will diversify its investments to reduce credit risk or market risk losses to the portfolio as a whole, while still attaining a market-average rate of return. Diversification requires not just an array of instrument types, but also an array of maturities and issuers. The following represents the quality and concentration limits to which the investment portfolio must conform:
a. No more than 5% of the total portfolio may be invested in securities issued by any single issuer unless otherwise specified in this policy.
City of Vallejo Investment Policy – Considered by the City Council on June 813, 20231
b. No more than 50% of the portfolio will be invested in any one asset class ( with the exception of U.S. Treasury securities, and authorized pools).
9.0 REPORTING
California Government Code Section 53607 requires monthly reporting of transactions to the City Council and Section 53646 provides for a quarterly investment report to be submitted to the City Council. This Investment Policy requires the quarterly investment report to be submitted no later than 63045 days following the City’s receipt of the last monthly trustee investment statement for the reporting period covered by the report. The report will identify each security held under the management of contracting parties and the City , the earnings of the portfolio, and a statement of the Investment Program's ability to meet the expected net expenditure requirements for the next six months.
The report shall include the following information:
A. Type of investment, issuer, date of maturity, par value and dollar amount invested in all securities, investments and money held by the City at the end of the reporting period; and
B. A listing of individual securities held at the end of the reporting period by authorized investment category and percentage of portfolio represented by each investment category; and
C. Average life and final maturity of all investments listed, and coupon, discount or earnings rate; and
D. Par Value, Fair Value and Cost Value; and
E. A description of any City funds, investments, or programs that are under the management of contracted parties; and
F. For all securities held by the City or under management by an outside party that is not a local agency pool or the State of California Local Agency Investment Fund, the current market value as of the date of the report, including the source of this valuation; and
G. State that the City has the ability to meet its pooled expenditure requirements (cash flow) for the next six months or provide an explanation as to why sufficient money shall or may not be available.
H. State that the portfolio is in compliance with this Investment Policy or state the manner in which the portfolio is not in compliance.
If the City places all of its investments in the Local Agency Investment Fund, Federal Deposit Insurance Corporation -insured accounts in a bank or sav ings and loan association (or any combination of these three), the Finance Director can simply submit, on at least a quarterly basis, the most recent statements from these institutions to meet the requirements of items A - H above.
Commented [FA1]:
FW Quarterly Investment Rep
City of Vallejo Investment Policy – Considered by the City Council on June 813, 20231
10.0 SAFEKEEPING AND CUSTODY
All security transactions of the City, including collateral on repurchase agreements, will be executed by delivery-versus-payment (DVP). This ensures that securities are deposited in the eligible financial institution prior to the release of funds. A t hird party custodian, as designated by the Treasurer and as evidenced by safekeeping receipts, will hold securities of the City.
11.0 AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The Treasurer’s office will maintain a list of financial institutions authorized to provide investment services, including approved security broker/dealers.
A. The City shall transact business only with banks, savings and loans, and with investment securities dealers as defined in Government Code Section 53601.5:
53601.5 – Designated entities from whom a local agency may purchase authorized investments:
“The purchase by a local agency of any investment authorized pursuant to Section 53601 or 53601.1, not purchased directly from the issuer, shall be purchased either from an institution licensed by the state as a broker -dealer, as defined in Section 25004 of the Corporations Code, or from a member of a federally regulated securities exchange, from a national or state- chartered bank, from a federal or state association (as defined by Section 5102 of the Financial Code) or from a brokerage firm designated as a primary government dealer by the Federal Reserve Bank.”
B. Before accepting funds or engagi ng in investment transactions with the City, the supervising officer at each depository and recognized securities broker/dealer shall submit a certification that the officer has reviewed the investment policies and objectives and agrees to disclose potenti al conflicts or risks to public funds that might arise out of business transactions between the firm/depository and the City of Vallejo.
C. If the City has engaged the services of a registered investment advisory firm, the firm is authorized to conduct inves tment transactions on the City’s behalf with their own list of approved broker/dealers and financial institutions. The investment advisor’s approved list must be made available to the City upon request. In selecting financial institutions for the deposit or investment of City funds, the credit rating of these institutions will be considered. These financial institutions shall be authorized to provide investment services in California.
12.0 COLLATERALIZATION
Collateralization will be required on two types of investments: certificates of deposit and repurchase agreements. In order to anticipate market changes and provide a level of security for all funds, the collateralization level for any amount exceeding FDIC coverage shall be in accordance with California Government Code Section 53652 and/or 53651 (m)(1).
City of Vallejo Investment Policy – Considered by the City Council on June 813, 20231
The City chooses to limit acceptable collateral to the following: Cash, U.S. Treasury Bills, Notes and Bonds, and Federal Agency issues.
Collateral will always be held in the City’s name by an independent third party with whom the City of Vallejo has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City.
The right of collateral substitution is reserved by the City.
13.0 DELEGATION OF AUTHORITY
In accordance with the Vallejo City Charter, Section 725, the authority to invest City funds is delegated to the City Manager. The City Manager delegates this authority to the Director of Finance, serving as City Treasurer. No person may engage in an investment transaction except as provided for under the terms of this policy. Although the Finance Director/Treasurer may delegate these duties to another official in the Department of Finance, the Finance Director shall be responsible for all transactions undertaken and will establish a system of controls to regulate the activities of subordinate officials.
14.0 ETHICS AND CONFLICT OF INTEREST
In accordance with California Government Code Sections 1090 et seq. and 87100 et seq., officers and employees of the City and professional investment managers (“investment officials”) will refrain from any personal business activity that could conflict with the proper execution and management of the investment program or which could impair their ability to make impartial investment decisions for the City . All investment personnel , including pr ofessional investment managers, shall comply with the reporting requirements of the Political Reform Act, to include the annual filing of Statements of Economic interest.
No investments will be made with or
through any family or blood-related relative or any firm that employs any family or blood-related relative of any City Elected Official, Appointed Official, or City employee. Additionally, investment officials must refrain from undertaking personal investment transactions with the same individuals employed by the financial institution with whom business is conducted on behalf of the City.
15.0 POLICY REVISION AND ADOPTION
This Investment Policy shall be reviewed and adopted at least annually by resolution of the City Council of Vallejo. Furthermore, it
can be revised whenever necessary by the City Council or Finance Director with City Council approval, and any modifications made thereto must be approved by the City Council, as required by law.
16.0 PROHIBITED TRANSACTIONS
Certain investment practices and instruments may be inconsistent with the safety of invested funds, or prohibited by the State of California Government Code Section 53601.6 and are
City of Vallejo Investment Policy – Considered by the City Council on June 813, 20231
therefore prohibited transactions. Prohibited investments include securities not listed in Attachment A below, as well as but not limited to:
A. Investments Prohibited by State of California Government Code Section 53601.6:
1. Mortgage Derived Interest-Only Strips.
2. Any security that could result in zero interest accrual if held to maturity.
3. "Complex" derivative structures such as range notes or inverse floaters.
4. Auction-rate preferred securities.
B. Additional Investments Prohibited by the City of Vallejo:
1. No direct investment in financial agreements whose returns are linked to or derived from the performance of some underlying assets such as stocks, bonds, currencies or commodities products (“Derivatives”). Only allowed as part of the City’s investments in Government Investment Pools and sweep accounts. This may include dual index notes, leveraged or de-leveraged floating rate notes, or any other complex variable rate or structured note, and any other financial derivative.
2. Leveraged investing, such as in margin accounts or any form of borrowing against or otherwise obligating city investments for the purpose of investment.
3. Options and future contracts.
4. Taking short positions; that is, selling securities that the City does not own.
5. Equity Securities (Common or Preferred Stocks).
Purchasing these types of instruments does not coincide with the City’s Investment Policy objectives and would require a thorough review and monitoring of the underlying security. Although some of these transactions are legal under California Government Code, they do not meet the objectives contained in this Investment Policy.
Prohibited investments already held in the portfolio at the time of adoption of this policy may continue to be held until maturity at the discretion of the Finance Director/Treasurer.
17.0 SOCIAL RESPONSIBILITY
Investment of funds should be guided by the following socially responsible investment goals when investing in corporate securities and depository institutions. Investments should be made in compliance with these goals to the extent that such investments achieve substantially equivalent safety, liquidity and yield compared to investments permitted by California state law.
The City shall seek opportunities for investing in companies that have a positive impact on the environment and fair workplace practices. Investments are encouraged in entities that support
City of Vallejo Investment Policy – Considered by the City Council on June 813, 20231
equality of rights, regardless of sex, race, religion, age, disability or sexual orientation. No investment is to be made in a company that receives more than 51 percent of its gross revenues from the production or manufacture of fossil fuels, weapons manufacturing, cigaret tes, alcohol or gaming products.
18.0 MAXIMUM MATURITY LIMIT
To the extent possible, the City of Vallejo will attempt to match its investments with anticipated cash flow requirements. In compliance with State of California Government Code Section 53601, the City will not directly invest in any securities with a legal final maturity of more than five years from the date of purchasetrade settlement, unless the City Council has granted express authority to make that investment either specifically or as a part of an investment program approved by the City Council no less than three months prior to the investment.
Furthermore, in order to maintain liquidity, the weighted average time to maturity of the City’s investment portfolio shall not exceed three years. The Treasurer shall adjust average portfolio maturity to market conditions and specific investment goals/return objectives, as needed.
19.0 PORTFOLIO MANAGEMENT
Following the primary objective of preservation of capital, the investment portfolio may be actively managed to take advantage of market opportunities. In doing so, negotiable securities may be sold prior to their maturity to provide liquid funds as needed for cash flow purposes, to enhance portfolio returns, or to restructure maturities to increase yield and/or decrease risk. In addition, fluctuations in market rates or changes in credit quality may produce situations where securities may be sold at a loss in order to mitigate further erosion of principal or to reinvest proceeds of sale in securities that will out-perform the original investment. In practice, however, it is primarily a hold to maturity portfolio.
20.0 USE OF EXTERNAL PROFESSIONAL INVESTMENT MANAGERS
The City may employ the services of professional investment managers to assist in the management of the City's investment portfolio. Such managers may be granted the discretion to purchase and sell investment securities in accordance with this Investment Policy. In addition, such managers may review cash flow requirements, formulat e investment strategies, and execute security purchases, sales and deliveries. External investment managers must be well established and exceptionally reputable. Members of the staffs of such companies who will have primary responsibility for managing the City’s investments must have a working familiarity with the special requirements and constraints of investing municipal funds in general and this City's funds in particular. Such managers shall only be retained by written agreement with the City, and approved by the City Council. They must contractually agree to conform to the City’s Investment Policy and all pr ovisions of governing law and collateralization and other requirements contained herein.
Investment Managers shall exercise reasonable care in compliance with this Investment Policy and their Investment Management Agreements. If an Investment Manager causes a loss of funds to the City where the Manager is held to be liable for the loss of funds, compensation due to the City from the I nvestment Manager for such loss of funds is defined in each investment management agreement.
City of Vallejo Investment Policy – Considered by the City Council on June 813, 20231
21.0 INDEMNIFICATION OF CITY INVESTMENT OFFICIALS
The City Finance Director/Treasurer and any other City of Vallejo employee designated or assigned to perform the investment transactions and/or manage the City’s investment portfolio, acting within the intent and scope of the investment policy and other written procedures and exercising due diligence, will not be held personally liable for any individual investment losses
or total portfolio losses and shall be relieved of personal responsibility and liability for any individual security's credit risk or market price changes. Such indemnity shall extend to judgments, fines, attorney fees, and any other amounts paid in settlement of any such claim, suit, or proceeding, including any appeal thereof.
22.0 ALLOCATION OF ANY INVESTMENT GAIN OR LOSS
Any gain or loss realized on any investments will be distributed on a pro rata basis to all non- restricted funds which at the time of the investment gain or loss were part of the City’s portfolio, or using other such methods as directed by the City Finance Director/Treasurer, and in accordance with generally accepted accounting principles.
23.0 POLICY EXCEPTIONS
Occasionally, exceptions to some of the requirements specified in this Investment Policy may occur for pooled investm ents because of events subsequent to the purchase of investment instruments, e.g., the rating of a corporate note held in the portfolio is downgraded below an "A" rating, or total assets in the portfolio decline causing the percentage invested in corporate notes to rise above 30%.
State law is silent as to how exceptions should be corrected. Exceptions may be temporary or more lasting; they may be self-correcting or require specific action. If specific action is required, the City Finance Director/Treasur er should determine the course of action that would correct exceptions to move the portfolio into compliance with State and City requirements. Decisions to correct exceptions should not expose the assets of the portfolio to undue risk, and should not impair the meeting of financial obligations as they fall due. Evaluation of divestiture of securities will be determined on a case- by-case basis. At maturity or liquidation, such monies shall be reinvested only as provided by this policy.
24.0 USE OF STATE GUIDELINES
State of California Government Code Sections 16340, 16429.1, 53600, 53601, 53601.6, 53601.8, 53635, 53635.2, 53635.8, 53638, 53646, and 53684 regulate investment practices. It is the policy of the City of Vallejo to use the State's provisions for local government investments as a guide in the developing and implementing the City's investment policies and practices with the exception of those investments listed as Prohibited Transactions in Section 15 above.
City of Vallejo Investment Policy – Considered by the City Council on June 813, 20231
25.0 LEGISLATIVE CHANGES
Any State of California legislative action that further restricts allowable maturities, investment types or percentage allocations will be incorporated into the City of Vallejo Statement of Investment Policy and supersede any and all previous applicable language. If the City is holding an investment that is subsequently prohibited by a legislative change, the City may hold that investment until the maturity date, if it is deemed prudent by the Finance Director/Treasurer.
City of Vallejo Investment Policy – Considered by the City Council on June 813, 20231
ATTACHMENT A
SCHEDULE OF AUTHORIZED INVESTMENT INSTRUMENTS
Allowable Investment Instruments
The City Finance Director/Treasurer is authorized to invest in any of the investment instruments allowed by Sections 16340, 16429.1, 53600, 53601, 53601.6, 53601.8, , 53635.2, 53635.8, 53638, and 53684 of the California Government Code with the exception of those investments listed as Prohibited Transactions in Section 16 above. Exclusion of the instruments in Section 16 (B) is consistent with the City's overall objective of achieving reasonable yields on public funds while minimizing risk and capital losses. Although the potential exists for greater interest yields with these instruments, it is believed that the potential level of risk exceeds their benefits except in very limited circumstances. Accordingly, City Council approval is required on a case-by-case basis for any investments listed in Prohibited Transactions Section 16 (B). Percentage holding limits listed in this section apply at the time the security is purchased.
Term
Reserve funds from the proceeds of debt issues of the City may be invested by the City Finance Director/ Treasurer in government agency securities with terms exceeding five (5) years if the maturi ty of such investments is made to coincide as nearly as practicable with the life of the debt issue.
In all other cases, City Council approval to make investments with terms in excess of five (5) years is required on a case-by-case basis.
Authorized Investments
The City’s funds may not be invested in those prohibited funds described in California Government Code 53601.6, but must only be invested in any of the following instruments as permitted by law (California Government Code Section 53601):
A. U.S. TREASURY BILLS. Commonly referred to as T -Bills, these are short -term marketable securities sold as obligations of the U.S. Government. They are offered in three-month, six-month, and one-year maturities. T -Bills do not accrue interest but are sold at a discount to pay face value at maturity. There are no limits on the dollar amount or percentage that the City may invest in U.S. Treasuries.
B. U.S. TREASURY NOTES. These are marketable, interest -bearing securities sold as obligations of the U.S. Government with original maturities of one to ten years at issuance.
Interest is paid semiannually. Purchases of these assets are limited to a remaining maturity of 5 years or less. There are no limits on the dollar amount or percentage that the City Agency may invest in U.S. Treasuries.
C. U.S. TREASURY BONDS. These are the same as U.S. Treasury Notes except they have original maturities of ten years or longer at issuance. Purchases of these assets are limited to a remaining maturity of 5 years or less, unless specifically approved by the City Council in accordance with California Government Code section 53601. There are no limits on the dollar amount or percentage that the Agency City may invest in U.S.
Treasuries
City of Vallejo Investment Policy – Considered by the City Council on June 813, 20231
D. U.S. GOVERNMENT AGENCY ISSUES AND GOVERNMENT SPONSORED ENTERPRISES (GSE’s). This includes obligations, participations, or other instruments of, or issued by, a federal government agency or a United States government-sponsored enterprise. Purchase of U.S. Government Agency securities may not exceed 50% of the City’s Portfolio. No more than 30% of the portfolio may be invested in any single Agency/GSE. The maximum percent of agency callable securities in the portfolio will be 20%.
The allowable securities fall into two categories: 1) Issues which are backed by the full faith and credit of the United States, 2) Issues which are implicitly backed by the full faith and credit of the United States and/or are in conservatorship.
These Issues include, but are not limited to:
1. Issues, which are unconditionally backed by the full faith and credit of the United States, including: Government National Mortgage Association (GNMA), Small Business Administration (SBA) and General Services Administration (GSA).
2. Issues which are not backed by the full faith and credit of the United States including but are not limited to: Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC ), Federal Home Loan Bank (FHLB), Farm Credit System, Banks for Cooperation (Co -ops), Federal Lands Banks (FLB), Federal Intermediate Credit Banks (FICB), and Tennessee Valley Authority (TVA).
E. LOCAL AGENCY INVESTMENT FUND (LAIF). As authorized in Government Code Section 16429.1, local agencies may invest in the Local Agency Investment Fund (LAIF), a pooled investment money market fund established by the State of California, and overseen by the State Treasurer, which allows local ag encies to pool their investment resources.
Principal may be withdrawn on a one- day notice. Interest earned is paid quarterly. The fees charged are limited to one-quarter of one percent of the earnings of the fund.
Current
policies of LAIF set minimum and maximum amounts of monies that may be invested as well as maximum numbers of transactions that are allowed per month. The City may invest up to the maximum amount permitted by LAIF. The LAIF is in trust in the custody of the State Treasurer. The City’s ri ght to withdraw its deposited monies from LAIF is not contingent upon the State’s ability to adopt a State Budget by July 1st of each new fiscal year.
F. BANKER'S ACCEPTANCES. Otherwise known as bills of exchange or time drafts, are negotiable instruments with a maturity of six months or less drawn on and accepted by a commercial bank. These instruments must be rated “A-1” or its equivalent or better by at least one Nationally Recognized Statistical Rating Organization (NRSRO); or long- term debt obligations which are rated in a category of “A” or its equivalent or better by at least one NRSRO. Banker’s Acceptances are usually created to finance the import or export of goods, or the shipment of goods within the United States. No more than 40% of the portfolio may be invested in Banker’s Acceptances. No more than 5% of the portfolio may be invested in any single issuer. The maximum maturity may not exceed 180 days.
City of Vallejo Investment Policy – Considered by the City Council on June 813, 20231
G. CERTIFICATE OF DEPOSIT (CDs). As authorized in Government Code Section 53601.8, local agencies may invest in Certificates of Deposit. These instruments must comply with Government Code Sections 16500 or 16600. This is a receipt for funds deposited in a Bank or Savings and Loan Association for a specified period at a specified rate of interest.
The first $ 250,000 of a CD is insured by the FDIC ; as such, the Finance Director/Treasurer may waive collateral requirements for CD investments up to this amount. Investments in CD's in excess of $ 250,000 must be collateralized by Treasury Department Securities, which must be at least 110% of the face value of the CD's in excess of the first $ 250,000, or by first mortgage loans, which must be at least 150% of the face value of the CD balance in excess of the first $ 250,000. No more than 20% of the portfolio may be invested in certificates of deposit. Maturities may not exceed more than five years.
All institutions must: (1) have a minimum of $100 million in assets ; (2) have a demonstrated history of positive earnings; and, (3) must carry a minimum 3.5% equity ratio and hold that ratio for at least one year prior to the City’s investment. All institutions must be located within the State of California. For collateralized or negotiable certificates of deposit, the institution must have a minimum $1 billion in assets, in addition to meeting the above criteria.
H. NEGOTIABLE CERTIFICATE OF DEPOSIT (NCD). Allowable certificates of deposits must be issued by a nationally or state-chartered bank or a state or federal association, a state or federal credit union, or by a federally-licensed or state-licensed branch of a foreign bank. The amount of the NCD insured up to the FDIC limit does not require any credit ratings. Any amount above the FDIC insured limit must be issued by institutions which have short-term debt obligations rated “A-1” or its equivalent or better by at least one NRSRO; or long-term obligations rated in a rating category of “A” or its equivalent or better by at least one NRSRO. The maturity period for this investment vehicle may not exceed five years unless approved by the Council. No more than 30% of the total portfolio may be invested in these securities. No more than 5% of the portfolio may be invested in any single issuer.
I. COMMERCIAL PAPER. As authorized in Government Code Section 53601(h), 25% of the City's portfolio may be invested in "prime" quality commercial paper. The securities must be rated “A-1” or its equivalent or better by at least one NRSRO and issued by a corporation which has long-term obligations with a rating of “A” or better by at least one NRSRO with maturities not to exceed 270 days. These notes are secured promissory notes of industrial corporations, utilities and bank holding companies. The issuer must be a corporation organized and operating in the United States with assets in excess of $500 million. The City may not purchase more than 10% of the outstanding commercial paper of any single issuer. No more than 5% of the portfolio may be invested in any single issuer. Under a provision sunsetting on January 1, 2026, no more than 40% of the portfolio may be invested in Commercial Paper if the City’s investment assets under management are greater than $100,000,000.
J. REPURCHASE AGREEMENTS. As authorized in Government Code Section 53601( j), repurchase agreements are agreements between the local agency and seller for the purchase of government securities to be resold at a specific date and for a specific amount.
Repurchase agreements are generally used for short term investments for the City’s daily automatic sweep account and will generally not exceed 30 days. The legal limitation on the
City of Vallejo Investment Policy – Considered by the City Council on June 813, 20231
maturity period for a repurchase agreement is for one year with the required market value underlying the agreement at 102% of the funds borrowed with the value adjusted quarterly.
K. MUNICIPAL BONDS OF THE STATE OF CALIFORNIA OR LOCAL AGENCIES . As authorized in Government Code Section 53601(e), local agencies may invest in Bonds of the State of California and any local government in the State of California, which are rated in the “A” category or better by one NRSRO at the time of investment . In no event shall this classification of investment exceed 10% of the value of the portfolio. No more than 5% of the portfolio may be invested in any single issuer.
L. MUTUAL FUNDS and MONEY MARKET MUTUAL FUNDS. Mutual Funds are referred to in California G overnment Code Section 53601( l), as "shares of beneficial interest issued by diversified management companies." Mutual Funds and Money Market Mutual Funds that are registered with the Securities and Exchange Commission under the Investment Company Act of 1 940 are authorized investments for funds subject to the following provisions:
a. Mutual Funds that invest in the securities and obligations as authorized under California Government Code Section 53601(a) to (k) and (m) to (q) inclusive and that meet either of the following criteria:
1. Attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) Nationally Recognized Statistical Rating Organizations (NRSROs); or
2. Have retained an investment advisor registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience investing in the securities and obligations authorized by California Government Code Section 53601 and with assets under management in excess of $500 million.
3. No more than 10% of the total portfolio may be invested in Mutual Funds.
4. No more than 5% of the total portfolio may be invested in any one issuer.
b. Money Market Mutual Funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 and issued by diversified management companies and meet either of the following criteria:
1. Have attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or
2. Have retained an investment advisor registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience managing money market mutual funds with assets under management in excess of $500 million.
3. No more than 1020% of the total portfolio may be invested in Money Market Mutual Funds.
4. No more than 5% of the total portfolio may be invested in any one issuer.
5. All Money Market Mutual Funds must be compliant with Rule 2a -7 of the Investment Company Act of 1940.
M. LOCAL GOVERNMENT INVESTMENT POOLS (LGIP).
Established to aggregate funds from public agencies placed in the custody of the pool for investment and reinvestment. There are no issuer limitations for Local Government Investment Pools. Government Code section 53601 (p) states:
City of Vallejo Investment Policy – Considered by the City Council on June 813, 20231
Shares of beneficial interest issued by a joint powers authority organized pursuant to Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (q), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria:
(1) The adviser is registered or exempt from registration with the Securities and Exchange Commission.
(2) The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q), inclusive. (3) The adviser has assets under management in excess of five hundred million dollars ($500,000,000).
N. MEDIUM TERM NOTES. As authorized in Government Code Section 53601( k), local agencies may invest in medium term notes issued by corporations organized and operating in the United States or by depository institutions licensed by the United States or any state and operating within the United States that are rated in the rating category of “A” or its equivalent or higher rating for the issuer’s debt as provided by one NRSRO and having a maximum remaining maturity period of five years or less in an amount not to exceed 30% of the agency’s portfolio. Furthermore, the maximum principal amount in any one issuer will not exceed 5% of the City’s portfolio.
O. MORTGAGE-BACKED SECURITIES (MBS), COLLATERALIZED MORTGAGE
OBLIGATIONS (CMO), AND ASSET BACKED SECURITIES (ABS) FROM ISSUERS
NOT DEFINED IN SECTIONS A THROUGH D OF THE AUTHORIZED INVESTMENTS SECTION OF THS POLICY. As authorized in Government Code Section 53601(o), local agencies may invest in any mortgage pass -through security, collateralized mortgage obligation, mortgage- backed or other pay -through bond, equipment lease- backed certificate, consumer receivable pass-through certificate or consumer receivable-backed bond with a maximum remaining maturity of five years.
Securities eligible for investment under this subdivision shall be rated in the rating category of “AA” or its equivalent or better by a nationally recognized rating service.
Purchases of securities authorized by this subdivision may not exceed 20% of the agency’s portfolio. No more than 5% of the portfolio may be invested in any single Asset- Backed or Commercial Mortgage security issuer.
P. MUNICIPAL BONDS OF OTHER STATES. As authorized in Government Code Section 53601(d), local agencies may invest in r egistered treasury notes or bonds of any of the other 49 United States in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 United States, in addition to California. Securities eligible for investment under this subdivision shall be rated in the rating category of “A” or its equivalent or better by one NRSRO at the time of investment. Purchases of securities authorized by this subdivision may not exceed 10% of the agency’s portfolio. Furthermore, the maximum principal amount in any one issuer will not exceed 5% of the City’s portfolio.
City of Vallejo Investment Policy – Considered by the City Council on June 813, 20231
Q. EQUITY SECURITIES (COMMON AND PREFERRED STOCKS ). The City may not purchase equity securities. From time to time, however, equity securities may be received as a gift, through bankruptcies or as payment in lieu of monies due the City. Such stock shall be sold unless received through a gift or bequest with restrictions on its sale. Sale proceeds will be distributed to the appropriate program fund. If the stock has no market value or if the cost of selling it exceeds the market value, the stock will be written off or monitored periodically to be sold when a break-even market value can be realized.
R. SUPRANATIONALS. Issues are U.S. dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter - American Development Bank. Supranationals are permitted by California Government Code § 53601 (q), and must be rated in a rating category of AA or its equivalent or higher by at least one NRSRO. No more than 30% of the total portfolio may be invested in Supranationals. No more than 10% of the portfolio may be invested in any single issuer.
The maximum maturity may not exceed five years.
It should be noted that while the Government Code specifies the maximum percentage of the portfolio that may be held in each type of investment at any one time, fluc tuations in the portfolio balance will prevent strict adherence to such restrictions. Therefore, the constraints listed in this policy are to be applied at the time the investment is made and not necessarily to subsequent events which may change the percentage.
SUMMARY OF AUTHORIZED SECURITIES AND CRITERIA INCLUDING
DIVERSIFICATION CRITERIA
The following table (Exhibit 1 to Attachment A) provides a summary of Permitted Investments and is not designed to include all restrictions and constraints a specific Permitted Investment may be subject to as an authorized investment in conformance with California Government Code Sections 16340, 16429.1, 53601 et seq., 53638, and 53684. Authorized investments shall also include, in accordance with California Government Code Section 16429.1 et seq., investments into the Local Agency Investment Fund (LAIF) or the County Pool Fund in accordance with California Government Code Section 53684. The City’s investment portfolio, in aggregate, will be diver sified to limit market and credit risk by observing the following maximum percentage limits, by instrument, for the City Policy Legal limitations.
City of Vallejo Investment Policy – Considered by the City Council on June 813, 20231
EXHIBIT 1 TO ATTACHMENT A
The City’s authorized investments must be in conformance with California Government Code Sections 53601 et seq. and 53635 et seq, and 53638. Authorized investments shall also include, in accordance with California Government Code Section 16429.1 et seq., investments into the Local Agency Investment Fund (LAIF) or the County Pool Fund in accordance with California Government Code Section 53684. Within the context of these limitations, the following investments are authorized:
State Code City Policy City
Maximum
Section Legal Limit Legal Limit Maturity City Policy
Ref # Permitted Investments (% or $) (% or $) Constraints Other Constraints A U.S. Government
Treasury Bills
Unlimited Unlimited 5 years None
B U.S. Government
Treasury Notes
Unlimited Unlimited 5 years None
C U.S. Government
Treasury Bonds
Unlimited Unlimited 5 years None
D U.S. Government
Agencies (e.g., GNMA,
FNMA)
Unlimited 50% 5 years 30% per issuer, 20%
limit on callable
agencies
E LAIF State Pool Up to
statutory
limits
Up to statutory
limits
On Demand Limited to 15
transactions per
month, per account,
per State Policy
F Bankers Acceptances 40% 40% 180 days No more than 5% of the portfolio invested
in any one
commercial bank:
Rated A-1 or better
G Certificates of Deposit Unlimited 20% 5 years Must be collateralized to 110% of the CD
value by other eligible
securities. The
City of Vallejo Investment Policy – Considered by the City Council on June 813, 20231
Finance Director may
waive collateral
requirements for
amounts insured by
the FDIC
H Negotiable Certificates
of Deposit
30% 30% 5 years State and Federally
chartered banks and
savings institutions,
“A” rating or better by
one agency. 5%
issuer limit.
I Commercial Paper 40% when
City has over
$100 million
in investible
assets, until
January 1,
2026
40% when City
has over $100
million in
investible assets,
until January 1,
2026
270 days U.S. Corporations
with assets in excess
of $500,000,000; “A”
long-term debt rating
or better; maximum of
$1,000,000 from an
issuing corporation.
5% per issuer limit.
Section
Ref #
Permitted
Investments
State Code
Legal Limit
(% or $)
City Policy
Legal Limit
(% or $)
City
Maximum
Maturity
Constraints
City Policy
Other Constraints
J Repurchase
Agreements
Unlimited 20% N.A. Collateralized by
securities with a
market value of at
least 102% of the loan
amount.
K Municipal State of
California or Local
Agency Bonds
Unlimited 10% 5 years Minimum “A” Debt
rating or better. 5%
issuer limit.
L a. Mutual Funds and
b. Money Market
Mutual Funds
a. 10%
b. 2020%
a. 10%
b. 201020%
4 years Funds invested as
defined in Section
53601 (a) to (g)
M Local Government
Investment Pools
Unlimited Unlimited On Demand None
N Corporate Medium
Term Notes
30% 30% 5 years U.S. Corporations;
minimum “A” debt
rating or better,
maximum of 5% of
portfolio per issuing
company
O Mortgage Backed
Securities
Collateralized
Mortgage Obligations,
Asset Backed
Securities
20% 20% 5 years Minimum “AA” Debt
rating or better. 5%
per issuer limit.
City of Vallejo Investment Policy – Considered by the City Council on June 813, 20231
P Municipal Bonds of
Other States
Unlimited 10% 5 years Minimum “A” rating or
better and Maximum
of 5% of portfolio per
issuer
Q Equity Securities
(Common or Preferred
Stocks)
0% 0% N.A. Only received by gift,
bankruptcy, or in lieu
of moneys due City
R Supranationals 30% 30% 5 years 10% per issuer limit
1) Limits on percent of portfolio do not apply to investments made by LAIF or other Government Investment Pools.
2) U.S. Treasury Bonds have a maturity of 10 years or more, which currently prohibits the purchase of “New Issue” Treasury bonds as an investment tool. Purchase of Treasury bonds in the secondary market is allowed only if the remaining term to maturity is less than 5 years , unless approved by the City Council.
ATTACHMENT B
GLOSSARY OF CASH MANAGEMENT TERMS
ACCRETION OF DISCOUNT - Periodic straight -line increases in the book or carrying value of a security so the amount of the purchase price discount below face value is completely eliminated by the time the bond matures or by the call date, if applicable.
ACCRUED INTEREST - Interest earned but not yet received. The interest accumulated on a bond since issue date or the last coupon payment. The buyer of the bond pays the market price and accrued interest, which is payable to the seller.
AGENCIES - A debt security issued by a federal or federally sponsored agency.
In the government securities industry, investors frequently refer to all debt instruments issued by U.S. government agencies, departments, and related instrumentalities as agency securities. Only those securities backed by the full faith and credit of the U. S. Government are true agency securities. Only securities issued by the Government National Mortgage Association (Ginnie Mae or GNMA) are widely used by public investors as tr ue agency securities backed by the full faith and credit of the U.S.
Government.
Generally, the underlying security associated with a U.S. agency is considered to be as risk -free as direct Treasury securities. The key difference in risk with these instruments is their liquidity and marketability, which is diminished as a result of smaller, irregular, and less familiar issues.
U.S. Government Instrumentalities, also known as government sponsored enterprises (GSEs), are financial intermediaries established by the federal government to fund loans to certain groups of
City of Vallejo Investment Policy – Considered by the City Council on June 813, 20231
borrowers, such as homeowners, farmers, and students. In short, GSEs are privately owned corporations with a public purpose. The most common instrumentalities are:
• Federal Farm Credit System Banks (FFCB),
• Federal Home Loan Banks (FHLB),
• Federal Home Loan Mortgage Corporation (Freddie Mac or FHLMC), • Federal National Mortgage Association (Fannie Mae or FNMA), • Tennessee Valley Authority (TVA).
GSEs sell securities on a regularly scheduled basis throug h selling groups, which are chosen groups of dealers that the GSE uses to "bring the paper to the streets." Short -term securities are regularly issued as discount notes with maturities ranging from overnight to 360 days. GSEs also issue securities with fixed interest rates, ranging in maturity from three months to 30 years.
AMORTIZATION OF PREMIUM - Periodic straight-line decreases in the book or carrying value of a security so the premium paid for a bond above its face value or call price is completely eliminated.
ASK – The price at which securities are offered for sale.
ASSET BACKED SECURITIES (ABS) – Asset Backed Securities are pass -through instruments collateralized by installment loans, leases, revolving lines of credit or other consumer finance receivables. Securitizations are structured to separate the credit of the ABS issuer from the assets being securitized.
AVERAGE MATURITY - A weighted average of the expiration dates for a portfolio of debt securities.
An income fund's volatility can be managed by shortening or lengthening the average maturity of its portfolio.
BANK WIRE - A virtually instantaneous electronic transfer of funds between two financial institutions.
BANKERS ACCEPTANCES (BAs) - Bankers Acceptances generally are created based on a letter of credit issued in a foreign trade transaction. They are used to finance the shipment of commodities between countries as well as the shipment of some specific goods within the United States. BAs are short-term, non -interest bearing notes sold at a discount and redeemed by the accepting bank at maturity for full face value. These notes trade at a rate equal to or slightly higher than Certificates of Deposit (CDs), depending on market supply and demand.
Bankers Acceptances are sold in amounts that vary from $100,000 to $5,000,000, or more, with maturities ranging from 30 - 270 days. They offer liquidity to the investor as it is possible to sell BAs prior to maturity at the current market price.
BASIS POINT - A measure of an interest rate, i.e., 1/100 of 1 percent, or .0001.
BID - The indicated price at which a buyer is willing to purchase a security or commodity. When selling a security a bid is obtained.
BOND - A long-term debt security, or IOU, issued by a government or corporation that generally pays a stated rate of interest and returns the face value on the maturity date.
City of Vallejo Investment Policy – Considered by the City Council on June 813, 20231
BOOK ENTRY SECURITIES - U.S. government and federal agency securities that do not exi st in definitive (paper) form; they exist only in computerized files maintained by the Federal Reserve Bank.
BOOK VALUE - The amount at which an asset is carried on the books of the owner. The book value of an asset does not necessarily have a significant relationship to market value.
BROKER – A broker brings buyers and sellers together for a commission.
CALLABLE BOND - A bond issue in which all or part of its outstanding principal amount may be redeemed before maturity by the issuer under specified conditions. Bonds are generally called when interest rates fall so that the bond issuer can save money by floating new bonds at the lower rate. The first call date is the date which a specific call price will be offered by the issuer, usually a premium price to par, as an incentive to the bondholder to redeem the bond.
CALL PRICE - The price at which an issuer may redeem a bond prior to maturity. The price is usually at a slight premium to the bond's original issue price to compensate the holder f or loss of income and ownership.
CALL RISK - The risk to a bondholder that a bond may be redeemed prior to maturity.
CASH SALE\PURCHASE - A transaction which calls for delivery and payment of securities on the same day that the transaction is initiated.
CERTIFICATES OF DEPOSIT - Certificates of Deposit, familiarly known as CDs, are certificates issued against funds deposited in a bank for a definite period of time and earning a specified rate of return.
Certificates of Deposit bear rates of interest in line with money market rates current at the time of issuance.
COLLATERALIZATION - Process by which a borrower pledges securities, property, or other deposits for the purpose of securing the repayment of a loan and/or security.
COMMERCIAL PAPER - Commercial paper is an unsecured promissory note issued by a corporation for a specific amount and maturing on a specific day that cannot be farther into the future than 270 days. Commercial Paper is typically rated by credit agencies that attempt to evaluate the liquidity, cash flow, profitability, and backup credit availability of the entity that is issuing the paper.
COMPETITIVE BID PROCESS - A process by which three or more institutions are contacted via the telephone to obtain interest rates for specific securities.
CONVEXITY - A measure of a bond's price sensitivity to changing interest rates. A high convexity indicates greater sensitivity of a bond's price to interest rate changes.
CORPORATE NOTES – A debt security issued by a corporation and sold to investors. The bond is usually a “general obligation” of the company. In some cases, the company's physical assets may be used as collateral for bonds, or certain bonds may be “subordinated” to others that the Company issues.
Subordinated notes and/or bonds are not permitted.
COUPON RATE - The annual rate of interest received by an investor from the issuer of certain types of fixed-income securities. Also known as the "interest rate."
City of Vallejo Investment Policy – Considered by the City Council on June 813, 20231
CREDIT QUALITY - The measurement of the financial strength of a bond issuer. This measurement helps an investor to understand an issuer’s ability to make timely interest payments and repay the loan principal upon maturity. Generally, the higher the credit quality of a bond issuer, the lower the interest rate paid by the issuer becaus e the risk of default is lower. Credit quality ratings are provided by nationally recognized rating agencies.
CREDIT RATINGS: An investment rating given to a debt instrument that indicates its credit worthiness.
Private independent rating services such as Standard & Poor's, Moody's and Fitch provide these evaluations of the issuer's financial strength, or its ability to pay principal and interest in a timely fashion.
High graded credit ratings are as follows:
Moody’s Standard & Poor’s Fitch
Long Term Short Term Long Term Short Term Long Term Short Term Aaa
P1
AAA
A1+
AAA
A1+ Aa1 AA+ AA+
Aa2 AA AA
Aa3 AA- AA-
A1 A+
A1
A+
A2 A A
A3
P2
A-
A2
A-
A2
Baa1 BBB+ BBB+
CREDIT RISK - The risk that another party to an investment transaction will not fulfill its obligations.
Credit risk can be associated with the issuer of a security, a financial institution holding the entity's deposit, or a third party holding securities or collateral. Credit risk exposure can be affec ted by a concentration of deposits or investments in any one investment type or with any one party.
CUSIP NUMBER - A nine -digit number established by the Committee on Uniform Securities Identification Procedures that is used to identify publicly traded securities. Each publicly traded security receives a unique CUSIP number when the security is issued.
CURRENT YIELD - A yield calculation determined by dividing the annual interest received on a security by the current market price of that security.
City of Vallejo Investment Policy – Considered by the City Council on June 813, 20231
CUSTODIAN - An independent third party (usually bank or trust company) that holds securities in safekeeping as an agent for the city.
DEBENTURE – A bond secured only by the general credit of the issuer.
DEFEASE - To discharge the lien of an ordinance, resolution, or indenture relating to a bond issue, and in the process, render inoperative restrictions under which the issuer has been obliged to operate.
Comment: Ordinarily an issuer may defease an indenture requirement by depositing with a trustee an amount sufficient to fully pay all amounts under a bond contract as they become due.
DELIVERY - The providing of a security in an acceptable form to the City or to an agent acting on behalf of the City and independent of the seller. Acceptable forms can be physical securities or the transfer of book entry securities. The important distinction is that the transfer accomplishes absolute ownership control by the City.
DELIVERY VS PAYMENT - There are two methods of delivery of securities: Delivery vs. payment and delivery vs. receipt (also called free). Delivery vs. payment is delivery of securities with an exchange of money for the securities. Delivery vs. receipt is delivery of securities with an exchange of a signed receipt for the securities.
DEPOSITORY BANK - A local bank used as the point of deposit for cash receipts.
DEPOSITORY INSURANCE - Insurance on deposits with financial institutions. For purposes of this policy statement, depository insurance includes: a) Federal depository insurance funds, such as those maintained by the Federal Deposit Insurance Corporation (FDIC).
DERIVATIVE SECURITY - Financial instrument created from, or whose value depends upon, one or more underlying assets or indexes of asset values.
DISCOUNT - 1. (n.) selling below par; e.g., a $1,000 bond selling for $900. 2. (v.) anticipating the effects of news on a security's value; e.g., "The market had already discounted the effect of the labor strike by bidding the company's stock down."
DISCOUNT SECURITIES – Non-interest bearing money market instruments that are issued at a discount and redeemed at maturity for full face value, e.g., U.S. Treasury Bills.
DIVERSIFICATION - Dividing available funds among a variety of securities and institutions so as to minimize market risk.
DOLLAR-WEIGHTED AVERAGE MATURITY - The sum of the amount of each outstanding investment multiplied by the number of days to maturity, divided by the total amount of outstanding investment.
EFFECTIVE RATE - The yield you would receive on a debt security over a period of time taking into account any compounding effect.
FACE VALUE - The value of a bond stated on the bond certificate; thus, the redemption value at maturity. Most bonds have a face value, or par, of $1,000.
City of Vallejo Investment Policy – Considered by the City Council on June 813, 20231
FAIR VALUE - The amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
FEDERAL AGENCY SECURITIES - Several government-sponsored agencies, in recent years, have issued short and long-term notes. Such notes typically are issued through dealers, mostly investment banking houses. These Federal government -sponsored agencies were established by the U.S.
Congress to undertake various types of financing without tapping the public treasury. In order to do so, the agencies have been given the power to borrow money by issuing securities, generally under the authority of an act of Congress. These securiti es are highly acceptable and marketable for several reasons, mainly because they are exempt from state, municipal and local income taxes. Furthermore, agency securities must offer a higher yield than direct Treasury debt of the same maturity to find investors, partly because these securities are not direct obligations of the Treasury.
The main agency borrowing institutions are the Federal National Mortgage Association (FNMA), the Federal Home Loan Mortgage Corporation (FHLMC ), the Federal Home Loan Bank Sy stem (FHLB), and the Federal Farm Credit System (FFCS).
FLOATING-RATE NOTES - The term floating- rate notes includes different types of securities with a similar feature that the interest rate or coupon rate is adjusted periodically to a benchmark or base rate.
A simple example of a floating- rate instrument is a Series EE savings bond where the semiannual interest rate is determined in May and November based on 85 percent of the average market return of the five-year Treasury note for the preceding six mont hs. In theory, floating -rate notes are securities with coupons based on a short-term rate index.
FNMA - FEDERAL NATIONAL MORTGAGE ASSOCIATION - issues notes tailored to the maturity needs of the investor. Maturities range from 30 days up to 10 years. These notes are made attractive by their denominations from $5,000 to $1 million.
FHLB - FEDERAL HOME LOAN BANK SYSTEM - consists of twelve Federal Home Loan Banks, issues, in addition to long- term bonds, coupon notes with maturities of up to one year. Their attractiveness stems from their investment denominations of $10,000 to $1 million.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) - A Federal institution that insures bank deposits.
FEDERAL FUNDS (Fed Funds) - Funds placed in Federal Reserve banks by depository institutions in excess of current reserve requirements. These depository institutions may lend fed funds to each other overnight or on a longer basis. They may also transfer funds among each other on a same -day basis through the Federal Reserve banking system. Fed funds are considered to be immediately available funds.
FEDERAL FUNDS RATE - The rate of interest at which Fed Funds are traded between banks. Fed Funds are excess reserves held by banks that desire to invest or lend them to banks needing reserves.
The particular rate is heavily influenced through the open market operations of the Federal Reserve Board. Also referred to as the "Fed Funds rate."
FEDERAL HOME LOAN BANKS (FHLB) - The institutions that regulate and lend to savings and loan associations. These are Government sponsored wholesale banks which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and
City of Vallejo Investment Policy – Considered by the City Council on June 813, 20231
insurance companies. The mission of the FHLB’s is to liquefy the housing related assets of its members who must purchase stock in their district bank.
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) - FNMA, like GNMA, was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a Federal corporation working under the auspices of the Department of Housing and Urban Development, HUD. It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans, in addition to fixed- rate mortgages. FNMA's securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.
FEDERAL OPEN MARKET COMMITTEE (FOMC) – Consists of seven members of the Federal Reserve Board and five of the twelve Federal reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis.
The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money.
FEDERAL RESERVE SYSTEM - The central bank of the United States which has regulated credit in the economy since its inception in 1913. Includes the Federal Reserve Bank, 12 district banks and the member banks of the Federal Reserve, and is governed by the Federal Board.
FLEXIBLE REPURCHASE AGREEMENTS (Flex Repos) - Similar to a term repurchase agreement, a flex repo is a contractual transfer of U.S. government securities during the investment period, whereby the Seller agrees to repurchase the collateral securities from the Buyer on the Buyer's demand, subject to provisions of the agreement. The Seller is generally a financial institution such as a securities dealer or a bank. As buyers, most issuers re quire over-collateralization, marking-to-market of collateral and delivery-vs.-payment of collateral.
GINNIE MAES (GNMAs) - Mortgage securities issued and guarantied, as to timely interest and principal payments, by the Government National Mortgage Associ ation, an agency within the Department of Housing and Urban Development (HUD).
GOVERNMENT SECURITY - Any debt obligation issued by the U.S. government, its agencies or instrumentalities. Certain securities, such as Treasury bonds and Ginnie Maes, are back ed by the government as to both principal and interest payments. Other securities, such as those issued by the Federal Home Loan Mortgage Corporation, or Freddie Mac, are backed by the issuing agency.
GOVERNMENT-SPONSORED ENTERPRISES (GSE’s) - Payment of principal and interest on securities issued by these corporations is not guaranteed explicitly by the U.S. government, however, most investors consider these securities to carry an implicit U.S. government guarantee. The debt is fully guaranteed by the issuing corporations. GSE’s include: Farm Credit System, Federal Home Loan Bank System, Federal Home Loan Mortgage Corporation, Federal National Mortgage Association, and the Tennessee Valley Authority.
HAIRCUT - This term describes the way brokers and client s protect themselves from market risk in doing repos. An entity wanting to finance the purchase of $100 million in Treasury bonds may borrow just $98 million of the money. The two percent difference between the amount of securities purchased
City of Vallejo Investment Policy – Considered by the City Council on June 813, 20231
and the amount of money borrowed is the haircut. Similarly, an entity looking to borrow $100 million may need to provide, as collateral, Treasury securities with a market price equal to $102 million.
INTERNAL CONTROLS - An internal control structure designed to ensure that the assets of the entity are protected from loss, theft, or misuse. The internal control structure is designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that 1) the cost of a control should not exceed the benefits likely to be derived and 2) the valuation of costs and benefits requires estimates and judgments by management. Internal controls should address the following points:
1. Control of collusion - Collusion is a situation where two or more employees are working in conjunction to defraud their employer.
2. Separation of transaction authority from accounting and record keeping - By separating the person who authorizes or performs the transaction from the people who record or otherwise account for the transaction, a separation of duties is achieved.
3. Custodial safekeeping - Securities purchased from any bank or dealer including appropriate collateral (as defined by state law) shall be placed with an independent third party for custodial safekeeping.
4. Avoidance of physical delivery securities - Book-entry securities are much easier to transfer and account for since actual delivery of a document never takes place. Delivered securities must be properly safeguarded against loss or destruction. The potential for fraud and loss increases with physically delivered securities.
5. Clear delegation of authority to subordinate staff members - Subordinate staff members must have a clear understanding of their authority and responsibilities to avoid improper actions.
Clear delegation of authority also preserves the internal control structure that is contingent on the various staff positions and their respective responsibilities.
6. Written confirmation of transactions for investments and wire transfers - Due to the potential for error and improprieties arising from telephone and electronic transactions, all transactions should be supported by written communications and approved by the appropriate person. Written communications may be via fax if on letterhead and if the safekeeping institution has a list of authorized signatures.
7. Development of a wire transfer agreement with the lead bank and third-party custodian - The designated official should ensure that an agreement will be entered into and will address the following points: controls, security provisions, and responsibilities of each party making and receiving wire transfers.
INVERSE FLOATER - A bond or note that does not earn a fixed rate of interest. Rather, the interest rate that is earned is tied to a specific interest -rate index identified in the bond/note structure. The interest rate earned by the bond/note will move in the opposite direction of the index, e.g., if market interest rates as measured by the selected index rises, the interest rate earned by the bond/note will decline. An inverse floater increases the market rate risk and modified duration of the investment.
INVERTED YIELD CURVE - A chart formation that illustrates long-term securities having lower yields than short-term securities. This configuration usually occurs during periods of high inflation coupled with low levels of confidence in the economy and a restrictive monetary policy.
INVESTMENT COMPANY ACT OF 1940 - Federal legislation which sets the standards by which investment companies, such as mutual funds, are regulated in the areas of advertising, promotion, performance reporting requirements, and securities valuations.
City of Vallejo Investment Policy – Considered by the City Council on June 813, 20231
INVESTMENT POLICY - A concise and clear statement of the objectives and parameters formulated by an investor or investment manager for a portfolio of investment securities.
INVESTMENT-GRADE OBLIGATIONS - An investment instrument suitable for purchase by institutional investors under the prudent person rule. Investment-grade is restricted to those obligations rated BBB or higher by a rating agency.
LIQUIDATION - Conversion into cash.
LIQUIDITY - Refers to the ease and speed with which an asset can be converted into cash without a substantial loss in value. In the money market, a security is said to be liquid if th e spread between bid and asked prices is narrow and reasonable size can be done at those quotes.
LOSS - The excess of the cost or book value of an asset over selling price.
LOCAL GOVERNMENT INVESTMENT POOL (LGIP) - The aggregate of all funds from political subdivisions that are placed in the custody of the Treasurer for investment and reinvestment.
LONG-TERM INVESTMENTS - Investments considered long- term are generally defined as those instruments maturing in one year or longer.
MARK-TO-MARKET - The practice of valuing a security or portfolio according to its market value, rather than its cost or book value. An adjustment in the valuation of a securities portfolio to reflect the current market values of the respective securities in the portfolio.
MARKETABILITY - Ability to sell large blocks of money market instruments quickly and at competitive prices.
MARKET VALUE - The price at which a security is trading and could presumably be sold.
MARKET RISK - The risk associated with declines or rises in interest rates which cause an investment in a fixed- income security to increase or decrease in value. The risk that the market value of an investment, collateral protecting a deposit, or securities underlying a repurchase agreement will decline.
MASTER REPURCHASE AGREEMENT - An agreement between the investor and the dealer or financial institute. This agreement defines the nature of the transactions, identifies the relationship between the parties, establishes normal practices regarding ownership and custody of the collateral securities during the term of the investment, provides for remedies in the event of a default by either party and otherwise clarifies issues of ownership.
MATURITY - The date upon which the principal or stated value of an investment becomes due.
MONEY MARKET – The market in which short -term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded.
MORTGAGE-BACKED SECURITIES - Mortgage-backed securities have several unique characteristics, beginning with the payment of interest on a monthly basis. Mortgage Backed Securities also differ from standard Treasury investments in that the cash flow pattern is uncertain due to the risk of prepayments or the unscheduled payment of principal. Moreover, a change in the future assumption
City of Vallejo Investment Policy – Considered by the City Council on June 813, 20231
for prepayments will also affect the rate of return on the investment of a mortgage- backed security.
Mortgage-backed securities are created when mortgage pools are collateralized into interest -bearing securities. This securitization process can be accomplished via either a sale of assets or as a debt obligation of the issuer. In the former, a mortgage pass -through security is created, while in the latter case a mortgage-backed bond is originated.
MUNICIPAL SECURITIES – Securities issued by state and local agencies to finance capital and operating expenses.
MUTUAL FUND - An investment company that pools money and can invest in a variety of securities, including fixed-income securities and money market instruments. Mutual funds are regulated by the Investment Company Act of 1940 and must abide by the following Securities and Exchange Commission (SEC) disclosure guidelines:
1. Report standardized performance calculations.
2. Disseminate timely and accurate information regarding the fund's holdings, performance, management and general investment policy.
3. Have the fund's investment policies and activities supervised by a board of trustees, which are independent of the adviser, administrator or other vendor of the fund.
4. Maintain the daily liquidity of the fund's shares.
5. Value their portfolios on a daily basis.
6. Have all individu als who sell SEC- registered products licensed with a self -regulating organization (SRO) such as the National Association of Securities Dealers (NASD).
7. Have an investment policy governed by a prospectus which is updated and filed by the SEC annually.
MUTUAL FUND STATISTICAL SERVICES - Companies that track and rate mutual funds, e.g., IBC/Donoghue, Lipper Analytical Services, and Morningstar.
NATIONAL ASSOCIATION OF SECURITIES DEALERS (NASD) - A self -regulatory organization (SRO) of brokers and dealers in the over -the-counter securities business. Its regulatory mandate includes authority over firms that distribute mutual fund shares as well as other securities.
NATIONALLY RECOGNIZED STATISTICAL RATINGS ORGANIZATION. The formal term to describe credit rati ng agencies that provide credit ratings that are used by the U.S. government in several regulatory areas. Ratings provided by Nationally Recognized Statistical Ratings Organizations (NRSRO) are used frequently by investors and are used as benchmarks by federal and state agencies.
Generally, to be considered an NRSRO, the agency has to be "nationally recognized" in the U.S. and provide reliable and credible ratings. Also taken into consideration is the size of the credit rating agency, operational capability and its credit rating process.
NEGOTIABLE CERTIFICATES OF DEPOSIT - Large denomination ($100,000 or more) interest bearing time deposits, paying the holder a fixed amount of interest at maturity. Issues can be sold to a new owner before maturity.
NET ASSET VALUE - The market value of one share of an investment company, such as a mutual fund. This figure is calculated by totaling a fund's assets which includes securities, cash, and any accrued earnings, subtracting this from the fund's liabilities and dividing this total by the number of
City of Vallejo Investment Policy – Considered by the City Council on June 813, 20231
shares outstanding. This is calculated once a day based on the closing price for each security in the fund's portfolio. [(Total assets) - (Liabilities)]/(Number of shares outstanding) NO LOAD FUND - A mutual fund which does not levy a sales charge on the purchase of its shares.
NOMINAL YIELD - The stated rate of interest that a bond pays its current owner, based on par value of the security. It is also known as the "coupon," "coupon rate," or "interest rate." OFFER - The indicated price at which a seller is willing to sell a security or commodity. When buying a security an offer is obtained.
OPEN MARKET OPERATIONS – Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market oper ations are the Federal Reserve’s most important and most flexible monetary policy tool.
PAR VALUE - The nominal or face value of a debt security; that is, the value at maturity.
PORTFOLIO – Collection of securities held by an investor.
POSITIVE YIELD CURVE - A chart formation that illustrates short -term securities having lower yields than long-term securities.
PREMIUM - The amount by which a bond sells above its par value.
PRIMARY DEALERS - A group of government securities dealers that submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC), registered securities broker-dealers, banks, and a few unregulated firms.
PRIME RATE - The interest rate a bank charges on loans to its most credit worthy customers.
Frequently cited as a standard for general interest rate levels in the economy.
PRINCIPAL - An invested amount on which interest is charged or earned.
PRUDENT PERSON RULE – An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state – the so- called legal list. In other states the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital.
QUALIFIED PUBLIC DEPOSITORY - A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated, for the benefit of the commission, eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits.
City of Vallejo Investment Policy – Considered by the City Council on June 813, 20231
RANGE NOTE - An investment whose coupon payment varies (e.g. either 7% or 3%) and is dependent on whether the current benchmark (e.g. 30 year Treasury) falls within a pre -determined range (e.g. between 6.75% and 7.25%).
RATE OF RETURN - The amount of income received from an investment, expressed as a percentage.
A market rate of return is the yield that an investor can expect to receive in the current interest -rate environment utilizing a buy-and-hold to maturity investment strategy.
REGISTERED SECURITY - A security that has the name of the owner written on its face. A registered security cannot be negotiated except by the endorsement of the owner.
REINVESTMENT RISK - The risk that a fixed- income investor will be unable to reinvest inc ome proceeds from a security holding at the same rate of return currently generated by that holding.
REPURCHASE AGREEMENT (REPO) - The Repo is a contractual transaction between an investor and an issuing financial institution (not a secured loan). The investor exchanges cash for temporary ownership of specific securities, with an agreement between the parties that on a future date, the financial institution will repurchase the securities at a prearranged price. An "Open Repo" does not have a specified repurchase date and the repurchase price is established by a formula computation.
REPRICING - The revaluation of the market value of securities.
REVERSE REPO ’s - The opposite of the transaction undertaken through a regular repurchase agreement. In a "reverse" the City initially owns securities and the bank or dealer temporarily exchanges cash for this collateral. This is, in effect, temporarily borrowing cash at a high interest rate. Most typically, a Repo is initiated by the lender of funds. Reverses are used by dealers to borrow securities they have shorted. Such investments are not authorized in the City of Vallejo’s Investment Policy.
RULE 2a-7 OF THE INVESTMENT COMPANY ACT - Applies to all money market mutual funds and mandates such funds to maintain certain standards, including a 13- month maturity limit and a 90-day average maturity on investments, to help maintain a constant net asset value of one dollar ($1.00).
SAFEKEEPING - A service to customers rendered by banks for a fee whereby all securities and valuables of all types and descriptions are held in the bank's vaults for protection, or in the case of book entry securities, are held and recorded in the customer's name and are inaccessible to anyone else.
SECONDARY MARKET – A market made for the purc hase and sale of outstanding issues following the initial distribution.
SECURITIES - Bonds, notes, mortgages, or other forms of negotiable or non-negotiable instruments.
SECURITIES & EXCHANGE COMMISSION – Agency created by Congress to protect investors i n securities transactions by administering securities legislation.
SERIAL BOND - A bond issue, usually of a municipality, with various maturity dates scheduled at regular intervals until the entire issue is retired.
SETTLEMENT DATES - The day on which pay ment is due for a securities purchase. For stocks and mutual funds bought through an investment dealer, settlement is normally five business days after the
City of Vallejo Investment Policy – Considered by the City Council on June 813, 20231
trade date. Bonds and options normally settle one business day after the trade date, mutual fund shares purchased directly by mail or wire settle on the day payment is received.
SHORT-TERM INVESTMENTS - Short-term investments are generally defined as those instruments maturing in one year or less.
SINKING FUND - Money accumulated on a regular basis in a separate custodial account that is used to redeem debt securities or preferred stock issues.
SPREAD - (a) Difference between the best buying price and the best selling price for any given security. (b) Difference between yields on or prices of two securities of differing quality or differing maturities. (c) In underwriting, difference between price realized by the issuer and price paid by the investor.
STRIPS - Separation of the principal and interest cash flows due from any interest-bearing securities into different financial instruments. Each coupon payment is separated from the underlying investment to create a separate security. Each individual cash flow is sold at a discount. The amount of the discount and the time until the cash flow is paid determine the investor’s return.
STRIPPED TREASURIES - U.S. Treasury debt obligations in which coupons are removed by brokerage houses, creating zero-coupon bonds.
STRUCTURED NOTES – A complex, fixed income instrument, which pays interest, based on a formula tied to other interest rates, commodities or indices. Examples include inverse floating rate notes that have coupons that increase when other interest rates are falling, and which fall when other interest rates are r ising, and "dual index floaters," which pay interest based on the relationship between two other interest rates - for example, the yield on the ten-year Treasury note minus the Libor rate. Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements.
Notes issued by government Sponsored Enterprises (GSE) such as FHLB, FNMA, and Corporations which have imbedded options (e.g., call features, step- up coupons, floating rate coupons, derivative- based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve.
SUPRANATIONAL. A Supranational is a multi -national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries.
TERM BOND - Bonds comprising a large part or all of a particular issue which come due in a single maturity. The issuer usually agrees to make periodic payments into a sinking fund for mandatory redemption of term bonds before maturity.
TOTAL RETURN - The sum of all investment income plus changes in the capital value of the portfolio.
For mutual funds, return on an investment is composed of share price appreciation plus any realized dividends or capital gains. This is calculated by taking the following components during a certain time period. (Price Appreciation) + (Dividends and Interest received) + (Capital gains) = Total Return TRIPARTITE CUSTODIAN AGREEMENT - An agreement that occurs when a third party or custodian becomes a direct participant in a repurchase transaction. The custodian ensures that the exchange
City of Vallejo Investment Policy – Considered by the City Council on June 813, 20231
occurs simultaneously and that appropriate safeguards are in place to protect the investor’s interest in the underlying collateral.
THIRD-PARTY SAFEKEEPING - A safekeeping arrangement whereby the investor has full control over the securities being held and the dealer or bank investment department has no access to the securities being held.
TIME DEPOSIT - Interest-bearing deposit at a savings institution that has a specific maturity.
TREASURY BILLS - Treasury bills are short-term debt obligations of the U.S. Government. They offer maximum safety of principal since they are backed by the full faith and credit of the United States Government. Treasury bills, commonly called "T -Bills," account for the bulk of government financing, and are the major v ehicle used by the Federal Reserve System in the money market to implement national monetary policy. T-Bills are sold in three, six, nine, and twelve- month bills. Because treasury bills are considered "risk-free," these instruments generally yield the lowest returns in the major money market instruments.
TREASURY NOTES AND BONDS - While T-Bills are sold at a discount rate that establishes the yield to maturity, all other marketable treasury obligations are coupon issued. These include Treasury Notes with m aturities from one to ten years and Treasury Bonds with maturities of 10- 30 years. The instruments are typically held by banks and savings and loan associations. Since Bills, Notes and Bonds are general obligations of the U.S. Government, and since the Fed eral Government has the lowest credit risk of all participants in the money market, its obligations generally offer a lower yield to the investor than do other securities of comparable maturities.
UNDERLYING SECURITIES - Securities transferred in accordance with a repurchase agreement.
UNIFORM NET CAPITAL RULE – Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.
VARIABLE RATE - An interest rate which is adjusted periodically, usually based on a standard market rate outside the control of the bank or savings institution, such as that prevailing on a Treasury bill or the prime interest rate. These rates often have a specified floor and/or ceiling, called a cap or a collar, which limit the adjustment. Also called adjustable rate or floating rate.
WEIGHTED AVERAGE MATURITY - The sum of the amount of each outstanding investment multiplied by the number of days to maturity, divided by the total amount of outstanding investment.
WHEN-ISSUED TRADES - Typically, there is a lag between the time a new bond is announced and sold and the time it is actually issued. During this inter val, the security trades " WI," "when, as, and if issued."
WI - When, as, and if issued. See When-issued trades.
City of Vallejo Investment Policy – Considered by the City Council on June 813, 20231
YIELD - The rate at which an investment pays out interest or dividend income, expressed in percentage terms and calculated by dividing the amount paid by the price of the security and annualizing the result.
YIELD BASIS - Stated in terms of yield as opposed to price. As yield increases for a traded issue, price decreases and vice versa. Charts prepared on a yield basis appear exactly opposite of those prepared on a price basis.
YIELD CURVE - A graphic representation that depicts the relationship at a given point in time between yields and maturity for bonds that are identical in every way except maturity. A normal yield curve may be alternatively referred to as a positive yield curve.
YIELD SPREAD - The variation between yields on different types of debt securities; generally a function of supply and demand, credit quality and expected interest rate fluctuations. Treasury bonds, for example, because they are so safe, will normally yield less than corporate bonds. Yields may also differ on similar securities with different maturities. Long-term debt, for example, carries more risk of market changes and issuer defaults than short-term debt and thus usually yields more.
YIELD-TO-CALL (YTC) - The rate of return an investor earns from a bond assuming the bond is redeemed (called) prior to its nominal maturity date. It is the percentage rate of a bond or note, if an investor were to buy and hold the security until the call date. This yield is valid only if the security is called prior to maturity. Generally bonds are callable over several years and normally are called at a slight premium. The calculation of yield to call is based on the coupon rate, length of time to the call and the market price.
YIELD-TO-MATURITY (YTM) - The rate of return yielded by a debt security held to maturity when both interest payments and the investor's potential capital gain or loss are included in the calculation of return. The calculation for YTM is based on the coupon rate, length of time to maturity and market price.
It assumes that coupon interest paid over the life of the bond will be reinvested at the same rate.
ZERO-COUPON BONDS - Securities that do not pay interest but are instead sold at a deep discount from face val ue. They rise in price as the maturity date nears and are redeemed at face value upon maturity.
Approved as to form:
By: for
Veronica Nebb, City Attorney
RESOLUTION NO. 23-XXX N.C.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VALLEJO APPROVING
THE STATEMENT OF INVESTMENT POLICY AND RENEWING DELEGATION OF
INVESTMENT AUTHORITY TO THE CITY FINANCE DIRECTOR, SERVING AS CITY TREASURER, FOR THE PERIOD JULY 1, 2023, THROUGH JUNE 30, 2024 WHEREAS, California Government Code Section 53646 allows a local agency at its option to provide for the Chief Fiscal Officer to render a Statement of Investment Policy for consideration and amendment by the City Council at a public meeting; and WHEREAS, California Government Code Section 53607 provides that a legislative body may delegate the authority to invest to the treasurer on an annual basis; and WHEREAS, the legislative body of a local agency may invest surplus monies not required for the immediate necessities of the local agency in accordance with the provisions of California Government Code Section 53601 et seq.; and WHEREAS, the Annual Statement of Investment Policy was last reviewed and adopted on May 24, 2022; and
WHEREAS, City Council renewed delegation of investment authority to the City Finance Director, serving as City Treasurer, for one year ending June 30, 2023; WHEREAS, the term of the delegation of investment authority should coincide with the term of the Investment Policy.
NOW, THEREFORE, BE IT RESOLVED that the Vallejo City Council hereby approves the Statement of Investment Policy for the City of Vallejo, as amended and set forth in Attachment 2 of the Staff Report accompanying this Resolution for the period from July 1, 2023 through June 30, 2024.
BE IT FURTHER RESOLVED that the Council hereby renews delegation of investment authority to the City Finance Director, serving as City Treasurer, for a period of one year, from July 1, 2023, through June 30, 2024, in accordance with the Policy.
ACTION ITEM 9.A.
DATE: June 13, 2023
TO: Mayor and Members of the City Council
FROM: Melissa Tigbao, P.E., Public Works Director
Jason Lacey, Landscape Maintenance Manager
SUBJECT: HOLD A PUBLIC HEARING AND ADOPT A RESOLUTION APPROVING THE
ENGINEER'S REPORT AND ORDERING THE LEVY AND COLLECTION OF
ASSESSMENTS ON PROPERTIES IN THE CIMARRON HILLS-MADIGAN, COLLEGE
HILLS, COSTA DEL RIO, SOMERSET I/II, GREENMONT/SEAPORT HILLS, MONICA
PLACE, RIDGECREST, SOMERSET III, SPRINGTREE-FLEMING, SUMMIT II, TOWN &
COUNTRY I, WOODRIDGE, HUNTER RANCH I/II, AND GLEN COVE I/II LANDSCAPE MAINTENANCE DISTRICTS FOR FISCAL YEAR 2023-2024
RECOMMENDATION
Hold a public hearing and adopt a resolution approving the Engineer's Report and ordering the levy and collection of assessments on properties in the Cimmaron Hills-Madigan, College Hills, Costa del Rio, Somerset I/II, Greemont/Seaport Hills, Monica Place, Ridgecrest, Somerset III, Springtree-Fleming, Summit II, Town & Country I, Woodridge, Hunter Ranch I/II, and Glen Cove I/II Landscape Maintenance Districts for fiscal year 2023-2024.
REASONS FOR RECOMMENDATION
The City Council authorized SCI Consulting Group, Inc. to prepare an Engineer's Report to determine fiscal information for each Maintenance District regulated by the Improvement Act of 1911. The City Council will hold a public hearing to receive public comments regarding FY 2023-2024 assessments within the following Ad Valorem Landscape Maintenance Districts: Cimarron Hills/Madigan, College Hills, Costa Del Rio (Seaview), Glen Cove I/II, Somerset Highlands I/II, Hunter Ranch I/II, Monica Place, Ridgecrest, Somerset Highlands III, Springtree/Fleming Hill, Summit II, Town & Country I, Woodridge, and Greenmont/Seaport Hills. The 1911 Act requires an annual determination of each District's costs, and an allocation of those costs by means of annual assessments upon the parcels within each district. It is required that the City Council conduct a public hearing to allow the City Council to consider the Engineer's Report and to receive input from the public on this item prior to ordering the levying and collection of the assessments.
BACKGROUND AND DISCUSSION
The City of Vallejo has 27 Landscape Maintenance Districts, thirteen of which were established in accordance with the Landscape and Lighting Act of 1972 (1972 Act), and fourteen of which were established in accordance with the Improvement Act of 1911 (1911 Act). On an annual basis, the City must determine the costs to maintain the improvements in each district and the allocation of these costs to the parcels within each district. The City Council will be considering the 1972 Act districts and the Hiddenbrooke Landscape Maintenance District under separate Council actions.
Previous City Council actions formed the 1911 Act Maintenance Districts and set a maximum annual assessment rate. The creation of these Districts was approved by a majority of the parcel owners at the time of each District's formation. The City has not yet exceeded the authorized maximum assessment rate for any Maintenance District. Assessments in the 1911 Act Maintenance Districts are exempt from the procedures and approval process of Proposition 218 until such time that it is necessary to exceed the maximum approved rate.
Date: June 13, 2023
Subject: HOLD A PUBLIC HEARING AND ADOPT A RESOLUTION APPROVING THE
ENGINEER'S REPORT AND ORDERING THE LEVY AND COLLECTION OF
ASSESSMENTS ON PROPERTIES IN THE CIMARRON HILLS-MADIGAN, COLLEGE
HILLS, COSTA DEL RIO, SOMERSET I/II, GREENMONT/SEAPORT HILLS,
MONICA PLACE, RIDGECREST, SOMERSET III, SPRINGTREE-FLEMING, SUMMIT
II, TOWN & COUNTRY I, WOODRIDGE, HUNTER RANCH I/II, AND GLEN COVE I/II LANDSCAPE MAINTENANCE DISTRICTS FOR FISCAL YEAR 2023-2024
The attached Engineer's Report, prepared by SCI Consulting Group Inc., provides this information.
Assessments for the 1911 Act Maintenance Districts are determined by applying the established assessment rate to each $100.00 of assessed value of each parcel.
The assessments are collected by the County of Solano and forwarded to the City for deposit into specific fund accounts for each district. Assessments are expended on landscape maintenance, repair of damage caused by vandalism or natural occurrence, site rehabilitation, improvements, water, utilities, and City administration and inspection costs.
The approved FY 2022-2023 and the proposed FY 2023-2024 assessment rates are provided in the following listing:
DISTRICT MAX RATE / $100 APPROVED FY 2022-23
ASSESSMENT
PROPOSED FY 23-24
ASSESSMENT
Cimarron Hills- Madigan $ 1.50 $ 0.162 $ 0.162
College Hills $ 1.50 $ 0.100 $ 0.100
Costa del Rio (Seaview) $ 4.00 $ 0.287 $ 0.287
Somerset I/II $ 1.25 $ 0.060 $ 0.060
Greenmont/Seaport Hills $ 1.25 $ 0.032 $ 0.032
Monica Place $ 1.25 $ 0.187 $ 0.187
Ridgecrest $ 1.50 $ 0.115 $ 0.115
Somerset III $ 1.50 $ 0.144 $ 0.144
Springtree-Fleming $ 1.50 $ 0.195 $ 0.195
Summit II $ 1.50 $ 0.095 $ 0.095
Town & Country I $ 1.50 $ 0.150 $ 0.150
Woodridge $ 1.50 $ 0.071 $ 0.071
Hunter Ranch I/II $ 1.50 $ 0.100 $ 0.100
Glen Cove I/II $ 1.50 $ 0.190 $ 0.190
Assessment rates for each district are proposed to remain the same as in the prior fiscal year. The overall assessed value of the majority of the properties within the Districts has increased by 5.36% since last year’s determination. The current assessed value for these properties is $1,277,055,493. Rehabilitation projects will focus on areas such as:
• Improving landscape services
• Reducing water costs
• Street tree maintenance
• Additional rehabilitation of ornamental landscape and plant replacement. • Reducing graffiti and other common area blight
Date: June 13, 2023
Subject: HOLD A PUBLIC HEARING AND ADOPT A RESOLUTION APPROVING THE
ENGINEER'S REPORT AND ORDERING THE LEVY AND COLLECTION OF
ASSESSMENTS ON PROPERTIES IN THE CIMARRON HILLS-MADIGAN, COLLEGE
HILLS, COSTA DEL RIO, SOMERSET I/II, GREENMONT/SEAPORT HILLS,
MONICA PLACE, RIDGECREST, SOMERSET III, SPRINGTREE-FLEMING, SUMMIT
II, TOWN & COUNTRY I, WOODRIDGE, HUNTER RANCH I/II, AND GLEN COVE I/II LANDSCAPE MAINTENANCE DISTRICTS FOR FISCAL YEAR 2023-2024
• Extension of the grass cutting to provide a wider fire-defensive perimeter around residential structures
All of the costs associated with the above work are paid by the assessments levied upon the parcels within those districts. The amount of funds projected to be assessed for these 1911 Act Districts in FY 2023-2024 is $1,528,683.68.
The FY 2023-2024 Engineer's Report for the 1911 Act Districts is included as an attachment to this staff report and is also on file in the City Clerk’s Office (3rd Floor) and in the Department of Public Works (4th Floor), City Hall, 555 Santa Clara Street, Vallejo, California 94590.
FISCAL IMPACT
There is no fiscal impact to the General Fund.
Maintenance District budgets are separate from the City’s General Fund. Landscape Maintenance District assessments finance the maintenance of the facilities and improvements of the districts. The Public Works Department costs for labor and materials associated with the work performed in the Maintenance Districts are charged to the individual District budgets. All City costs associated with maintaining and administering the Districts are covered by the annual assessments.
The financial health of these districts is described in the Engineer's Report. As noted in the Report, required operating reserves will continue to be compromised and service levels reduced in those districts that have not had an increase to their assessment rate since their formation in the 1970s. The FY 2023-24 proposed assessments in the amount of $1,528,683.68 is adequate to maintain the current minimal service levels and sustain the required operating reserves of the 1911 Act Districts.
ENVIRONMENTAL REVIEW
This action is exempt from the California Environmental Quality Act (CEQA) because it is not a project which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, pursuant to CEQA Guideline section 15378.
ATTACHMENTS
1. Reso FY 23-24- Public Hearing 1911_CAO Stamp
2. Vallejo 1911 Act ER 23-24
CONTACT
Melissa Tigbao, P.E., Public Works Director (707) 648-4433 [email protected]
RESOLUTION NO. 23-___ N.C.
RESOLUTION APPROVING THE ENGINEER’S REPORT AND ORDERING THE
LEVY AND COLLECTION OF ASSESSMENTS ON PROPERTIES
IN THE CIMARRON HILLS/MADIGAN, COLLEGE HILLS, COSTA DEL RIO (SEAVIEW), SOMERSET HIGHLANDS I/II, HUNTER RANCH I/II, GLEN COVE I/II, MONICA PLACE, RIDGECREST, SOMERSET HIGHLANDS Ill,
SPRINGTREE/FLEMING HILL, SUMMIT II, TOWN AND COUNTRY I,
WOODRIDGE, AND GREENMONT/SEAPORT HILLS MAINTENANCE DISTRICTS FOR FISCAL YEAR 2023-2024
WHEREAS, the City of Vallejo currently has 27 Landscape Maintenance Districts, fourteen of which were established pursuant to the Improvement Act of 1911 and which are as follows:
Cimarron Hills/Madigan, College Hills, Costa Del Rio (Seaview), Glen Cove I/II, Somerset Highlands I/II, Summit II, Hunter Ranch I/II, Monica Place, Ridgecrest, Somerset Highlands III, Springtree/Fleming Hill, Town & Country I, Woodridge; and Greenmont/Seaport Hills (hereinafter referred to as the “Districts”); and
WHEREAS, the City Council has, by previous resolution, preliminarily approved the Engineer’s Report (hereinafter referred to as the "Report") that describes the assessments against the parcels of land within the Districts for the Fiscal Year commencing July 1, 2023 and ending June 30, 2024; and
WHEREAS, the provisions of the Improvement Act of 1911 (California Streets and Highways Code section 5000 et seq.) (hereafter referred to as the "Act") provides for the levy and collection of assessments by the County of Solano on behalf of the City of Vallejo to pay the costs and expenses of operating, maintaining, and servicing the landscaping and all appurtenant facilities and operations related thereto located within the Districts; and WHEREAS, the City Council desires to levy and collect assessments against the parcels of land within the Districts for the fiscal year commencing July 1, 2023 and ending June 30, 2024, to pay the costs and expenses of operating, maintaining and servicing the landscaping and all appurtenant facilities and operations related thereto located within the Districts.
NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL AS FOLLOWS:
Section 1 Following notice duly given, the City Council has held a full and fair public hearing regarding the levy and collection of assessments in the Districts, the Engineer’s Report prepared in connection therewith, and has considered all oral and written statements, protests and communications made or filed by interested persons regarding these matters.
Section 2Based upon its review of the Engineer’s Report, the City Council hereby approves the Report estimating the costs to operate, maintain and service the Districts for Fiscal
Year 2023-2024 and finds and determines that the net amount to be assessed upon the lands within the Districts for the fiscal year commencing July 1, 2023 and ending June 30, 2024 shall be apportioned by a formula and method which fairly distributes the net amount among all eligible parcels in proportion to the estimated special benefits to be received by each parcel from the improvements and services.
Section 3 The City Council hereby levies against and upon all of the real property within the Districts a special assessment upon each $100.00 of assessed value thereof, for the maintenance and operating costs of the Districts for the fiscal year commencing July 1, 2023 and ending June 30, 2024, as follows:
DISTRICT
Cimarron Hills-Madigan $0.162/$100.00
College Hills $0.100/$100.00
Costa Del Rio (Seaview) $0.287/$100.00
Somerset I/II $0.060/$100.00
Hunter Ranch I/II $0.100/$100.00
Monica Place $0.187/$100.00
Ridgecrest $0.115/$100.00
Somerset Ill $0.144/$100.00
Springtree-Fleming $0.195/$100.00
Summit II $0.095/$100.00
Town & Country I $0.150/$100.00
Woodridge $0.071/$100.00
Greenmont/Seaport Hills $0.032/$100.00
Glen Cove I/II $0.190/$100.00
Section 4 Immediately upon the adoption of this Resolution, but in no event later than the third Monday in August following such adoption, the City Clerk shall file a certified copy of the assessments and a certified copy of this Resolution with the Auditor of the County of Solano. Upon such filing, the County Auditor shall enter on the County assessment roll opposite each lot or parcel of land the amount of assessment thereupon as shown in the assessment. The assessments shall be collected at the same time and in the same manner as County taxes are collected and all laws providing for the collection and enforcement of County taxes shall apply to the collection and enforcement of the assessments. After collection by the County, the net amount of the assessments, after deduction of any compensation due the County for collection, shall be paid to the City of Vallejo, City Treasurer.
Section 5 The Finance Director shall deposit all money representing assessments collected by the County for the Districts to the credit of a fund for each of the fourteen Landscape Maintenance Districts and such money shall be expended only for the maintenance, operation and servicing of each of the Landscape Maintenance Districts.
Adopted by the City Council of the City of Vallejo at a regular meeting held on June 13, 2023 with the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
___________________________________
ROBERT H. MCCONNELL, MAYOR
ATTEST:
___________________________________
DAWN G. ABRAHAMSON, CITY CLERK
OVERVIEW REPORT
City of Vallejo
Landscape Maintenance Districts
Fiscal Year 2023-24
Pursuant to the Improvement Act of 1911
Page i
(This page intentionally left blank.)
Page ii
Table of Contents
Table of Contents ......................................................................................................... ii Introduction ................................................................................................................. 1 Overview.................................................................................................................................... 1 Assessment Process .................................................................................................................. 2 Overview Report ........................................................................................................................ 3 Legal Requirements ...................................................................................................... 4 Method of Apportionment ........................................................................................... 5 Method of Apportionment ........................................................................................................ 5 Discussion of Benefit ................................................................................................................. 5 General versus Special Benefit .................................................................................................. 6 Benefit Finding .......................................................................................................................... 7 Budget Definitions ..................................................................................................... 10 Description of the Districts and Budgets ..................................................................... 14 Cimarron Hills – Madigan Ranch ............................................................................................. 14 College Hills ............................................................................................................................. 17 Sea View (Costa Del Rio) .......................................................................................................... 20 Glen Cove I & II ........................................................................................................................ 23 Greenmont – Seaport Hills ...................................................................................................... 26 Hunter Ranch I/II ..................................................................................................................... 29 Monica Place ........................................................................................................................... 32 Ridgecrest ................................................................................................................................ 35 Somerset Highlands (I/II) ......................................................................................................... 38 Somerset Highlands III ............................................................................................................. 41 Springtree ................................................................................................................................ 44 Summit II ................................................................................................................................. 47 Town & Country ...................................................................................................................... 50 Woodridge ............................................................................................................................... 53
Page iii
(This page intentionally left blank.)
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Introduction
Overview
The City of Vallejo (the “City”) annually levies and collects special assessments in order to provide and maintain the improvements within the fo urteen (14) separate landscape maintenance districts (“District” or “Distric ts”). The Districts have been fo rmed between the years 1977 and 1981 pursuant to the Improvement Act of 1911, Part 3 of Division 7 of the California Streets and Highways Code (the “1911 Act”). The Districts are as follows:
Cimarron Hills/Madigan Ranch
College Hills
Seaview (Costa del Rio)
Glen Cove I/II
Greenmont-Seaport Hills
Hunter Ranch I/II
Monica Place
Ridegecrest
Somerset I/II
Somerset III
Springtree
Summit II
Town & Country I
Woodridge
This Overview Report (the “Report”) describes the Districts, any changes to the Districts, and the proposed assessments for Fiscal Year 2023-2024. The proposed assessments are based on the estimated cost to maintain the improvements within each District. The Report also details each District’s landscaped improvements, financial information, budget and boundaries.
The Report contains a section for recommenda tions and analysis based on the financial information presented for each District.
The various improvements provided and assessed wi thin each District may include local street lighting, local landscaping improvements and special services. All local landscaping improvements maintained by the Districts and associated with ea ch District were either installed as a condition of development for properties within the District or were installed for the benefit of the properties within the Districts. The landscaping improvemen ts associated with each District may include parkways, perimeters, entryways, medians, slopes , retention and detention basin areas, internal landscaped amenities, neighborhood parks, open space areas and other easements and public right-of-ways within the Districts.
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
I m p r o v e m e n t s w i t h i n e a c h D i s t r i c t m a y a l s o include turf, ground cover, shrubs and trees, irrigation systems, lighting, water features, en try monuments, drainage systems and associated appurtenances. Special services provided in clude tree trimming, graffiti removal, weed abatement and landscape maintenance of flood control areas, operations, administration and all services and maintenance required to keep th e improvements in a healthy, vigorous, and satisfactory condition.
Similar to landscape improvements, street ligh ting improvements funded through District assessments were installed for th e benefit of properties within each of the Districts. The assessments in each District provide for the main tenance, operation and energy costs related to their specific street light improvements.
Assessment Process
This Report was prepared to establish the budge ts for the continued maintenance and services expenditures that would be funded by the proposed 2023-2024 assessments. This Report and the proposed assessments have been made pursuant to the provisions of the 1911 Act.
In each subsequent year for which the assessments will be continued, the City must determine the budgets and costs for the upcoming year and allocate these costs to parcels within each District. This Report includes this information. After the Report is completed, the Council may approve the proposed assessments and establish the date for a public hearing on the continuation of the assessments. If the Council approves the proposed assessments by resolution, a notice of public hearing must be published in a local paper.
Following the minimum 10-day time period after publishing the notice, a public hearing is held for the purpose of allowing public testimony about the proposed continuation of the assessments.
This hearing is currently scheduled for June 13, 2023. At this hearing, the Council would consider approval of a resolution ordering the levy of assessments for fiscal year 2023-2024. If so confirmed and approved, the assessments would be submitted to the County Auditor/Controller for inclusion on the property tax rolls for Fiscal Year 2023-2024.
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Overview Report
Beginning in 2011-12, SCI Consulting Group be came the Assessment Engineer for these Assessments. To maintain an accurate reference and legally defensible record of the Assessments, pertinent language used in the previous Overview Reports has been retained herein, and the fundamental methodology has been maintained, essentially verbatim. (In most cases, language taken from the prev ious Overview Report is shown in Times New Roman, 10 pt.
Font.)
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Legal Requirements
All assessments described in this Report and approved by the City Council are prepared in accordance with the 1911 Act and are in compliance with the provi sions of the California Constitution Article XIIID (Proposition 218).
The 1911 Act provides that assessments be determined by applying the established assessment rate to each one hundred dollars of assessed value of each parcel.
On November 5, 1996, California voters approved Proposition 218, which subsequently became a California Constitutional Amendment (Articles XIIIC and XIIID). Proposition 218 established additional requirements with respect to taxes, fees and assessments levied by California agencies. All new and existing assessments (with some exceptions) are required to comply with the substantive and procedural requirements of Article XIIIC & XIIID.
Pursuant to the California Constitution Article XIIID Section 5, certain existing assessments are exempt from the substantive and procedural requirements of Article XIIID Section 4 and property owner balloting for the assessments is not required until such time that the assessments are increased. Specifically, the City determined that all improvements and the annual assessments originally established for the District were part of the conditions of property development and approved by the original property owner (developer). As such, pursuant to Article XIIID Section 5(b), all the property owners approved the existing District assessments at the time the assessments were created (originally imposed pursuant to a 100% landowner petition). Therefore, the existing assessment amount (the maximum assessment ra te for each District identified in this Report) is exempt from the procedural requirements Article XIIID Section 4.
The current maximum assessment rates per each one hund red dollars of assessed value of each parcel were originally approved by the property owners. Accordingly, any assessment amount equal to or below the maximum amount is considered an exempt assessment pursuant to Article XIIID Section 5(b). The annual assessments for this fiscal year 2023-2024 are significantly less than the maximum assessment allowed. The proposed assessment for any fiscal year may be incr eased over the previous fiscal year provided the assessment rate does not exceed the maximum assessme nt rate for each District . Any proposed new or increased assessment that exceeds th e current maximum assessment shall comply with all provisions of Article XIIID Section 4 including a property owner protest proceeding (property owner assessment balloting).
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Method of Apportionment
Method of Apportionment
Assessments for the 1911 Act landscape maintenance districts of the City of Vallejo are determined by applying the established assessment rate to each one hundred dollars ($100) of assessed value of each parcel.
The word “parcel” refers to an individual property assigned its own Assessor Parcel Number by the Solano County Assessor’s Office. The Solano County Auditor/Controller uses Assessor Parcel Numbers and specific Fund Numbers to identify assessed properties on the tax roll. The annual assessments outlined in this Report are proposed to cover the estimated costs to provide a ll necessary service, operation, administration, and maintenance required each year to keep these improv ements in a healthy, vigorous, and satisfactory condition.
Discussion of Benefit
In summary, the assessments can only be levied based on the special benefit to property. This benefit is received by property over and above any general benefits.
Proposition 218, which added Article XIIID of the California Constitution, provides as follows:
"No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel." Benefit categories have been established that represent the types of special benefit to residential, commercial, industrial and other lots and parcels resulting from the installation, maintenance and servicing lighting and landscaping improvements to be provided with the assessment proceeds.
These categories of special benefit are summarized as follows:
A. Proximity to Improved Landscaped Areas and Other Public Improvements within the Assessment Districts.
B. Access to Improved landscaped areas and Other Public Improvements within the Assessment Districts.
C. Improved Views within the Assessment Districts.
D. Extension of a property’s outdoor areas and green spaces for properties within close proximity to the Improvements.
E. Creation of individual lots for resident ial and commercial use that, in absence of the assessments, would not have been created.
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Case law interpreting Proposition 218 provides en hanced clarity to the definitions of special benefits to properties in three distinct areas:
Proximity
Expanded or improved access
Views
This case law also clarifies that a special benefit is a service or improvement that provides a direct advantage to a parcel and that indirect or derivative advantages resulting from the overall public benefits from a service or improvement are general benefits. The case law also provides specific guidance that park improvements are a direct advan tage and special benefit to property that is proximate to a park that is improved by an assessment:
the characterization of a benefit may depend on whether the parcel receives a direct advantage from the improvement (e.g. proxim ity to a park) or receives an indirect, derivative advantage resulting from the overall public benefits of the improvement (e.g. general enhancement of the district’s property values).
Proximity, improved access and views, in additi on to the other special benefits listed above further strengthen the basis of these assessments.
General versus Special Benefit
In absence of the assessments, the Improvements in the Districts would not be provided, so the Improvements are “over and above” what otherwise would be provided. Many of the parcels would not even exist if the assessments were not established because an assessment for the specific Improvements within the Districts was a condition of development approval.
All of the Assessment proceeds derived from the Districts will be utilized to fund the cost of providing a level of tangible “special benefits” in the form of landscaped parkways, landscaped medians, landscaped corridors, open space areas and other Improvements and costs incidental to providing the Improvements and collecting the Assessments.
Although these Improvements may be available to the general public at large, the permanent public Improvements in the Districts were specifically designed, located and created to provide additional and improved public resources for the direct advantage of property inside the Districts, and not the public at large. Other properties that are either outside the Districts or within the Districts and not assessed, do not enjoy the unique proximity, access, views and other special benefit factors described previously. Moreover, the homes in the Districts would not have been built if the Assessments were not established because an assessment for the Improvements was a condition of development approval.
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Benefit Finding
In summary, real property located within the bou ndaries of the Districts distinctly and directly benefits from closer proximity, access and views of Improvements funded by the Assessments, the creation of developable parcels and from the extension of usable land area provided by the assessments. The Improvements are specifically designed to serve properties in the Districts, not other properties or the public at large. The Di stricts have been narrowly drawn to include those parcels that receive a direct advantage from th e Improvements. The public at large and other properties outside the Districts receive only limited benefits from the Improvements because they do not have proximity, good access or views of the Improvements. These are special benefits to property in the Districts in much the same wa y that sewer and water facilities, sidewalks and paved streets enhance the utility and desirability of property and make them more functional to use, safer and easier to access.
Without the Assessments, the public improvements within the Districts would not be maintained and would turn into brown, unmaintained and un usable public improvements and public lands.
If this happened, it would create a significant and material negative impact on the desirability, utility and value of property in the Districts. Most importantly, without the Assessments, the developed properties would not exist, becaus e the subdivisions and development proposals would not have been approved. The Improvements are, therefore, clearly above what otherwise would be provided and the Improvements uniquely and specially benefit parcels in the Districts in a way that is not enjoyed by the general public or other property. We therefore conclude that all the Improvements funded by the Assessment are of special benefit to the identified benefiting properties located within the Districts and that the value of the special benefits from such Improvements to property in the Districts reas onably exceeds the cost of the Assessments for every assessed parcel in the Dist ricts. (In other words, as required by Proposition 218; the reasonable cost of the proportional special bene fit conferred on each parcel reasonably exceeds the cost of the assessments.) Any general bene fits to surrounding properties outside of the Districts, if there were any, are collateral and conferred concomitantly.
The original determination of benefits to property and the method of special benefit apportionment to property were developed by Willdan Financial Services when the Districts were originally approved by property owners as noted in the Description of Districts section of this Report. The description of benefits and the de termination and apportionment of benefits to property in this Report are consistent with the original benefit determination and apportionment.
The original method of apportionment of assessment and other relevant elements of the original Reports for the Districts are hereby incorporated by reference.
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Quantification of General Benefit
Although the analysis used to support these asse ssments concludes that the benefits are solely special, as described above, consideration is made for the suggestion that a portion of the benefits are general. General benefits cannot be funded by these assessments - the funding must come from other sources.
The maintenance and servicing of these improvements is also partially funded, directly and indirectly from other sources including the Ci ty of Vallejo, Solano County and the State of California. This funding comes in the form of grants, development fees, special programs, and general funds, as well as direct maintenance and servicing of facilities (e.g. curbs, gutters and streets, etc.) This funding from other sources more than compensates for general benefits, if any, received by the properties within the assessments district.
The General Benefits from these Assessments may be quantified as illustrated in the following table.
Benefit Factor
Relative
Weight
General Benefit
Contribution
Relative General
Benefit
Creation of parcels 90 0% 0
Proximity and access to open space and landscape areas 5 10% 0.5 Improved views 5 10% 0.5
100 1
Total Calculate d Ge ne ral Be ne fit = 1.0%
As a result, City of Vallejo will contribute at least 1% of the total budget from sources other than the assessment. This contribution offsets any general benefits from the assessment services.
This general benefit contribution is the sum of the following components:
The City of Vallejo owns, maintains, rehabilitates and replaces curb and gutter along the border of the Districts improvements. Th is curb and gutter serves to support, contain, retain, manage irrigation flow and growth, and provide a boundary for the improvements. The contribution from the City of Vallejo towards general benefit from the maintenance, rehabilitation and replacement of the curb and gutter is conservatively estimated to be 1%.
The City of Vallejo owns and maintains local publ ic streets along the border of the Districts improvements. These public streets provide access to the improvements for its enjoyment as well as efficient maintenance. The contribution from the City of Vallejo towards general benefit from the maintenance of local public streets is conservatively estimated to be 1%.
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
The value of the construction of the improvements can be quantified and monetized as an annuity. Since this construction was performed and paid for by non-assessment funds, this “annuity” can be used to offset general benefi t costs, and is conservatively estimated to contribute 25%.
Therefore, the total General Benefit is conservatively quantified at 1.0% which is more than offset by the total non-assessment contribution towards general benefit of 27%.
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Budget Definitions
The following provides a summary of the services and costs that are incl uded in the District Budgets:
Direct Costs:
Contract Maintenance Costs — Includes all contra cted labor, material and equipment required to properly maintain the landscaping, irrigation sy stems, drainage systems, fencing, and entry monuments within the District. All improvements within the District are maintained and serviced on a regular basis.
Salaries & Benefits — Staff time devoted to mana ging and inspecting Districts. The Public Works LMD reimbursement is proportionally spread amongst twenty-seven (27) Districts based on each District’s budgeted direct and maintenance expense, inspections as a percentage of total costs in these categories for all Districts. Inspection costs are budgeted directly to the District as Field Inspection based on the historical and projected time spent in the inspection efforts.
Services & Supplies - Vehicles, supplies and services devoted to managing and inspecting Districts.
Landscape Water — Utility costs for water required to irrigate landscaped areas.
Utilities — Includes the cost of the furnishing of electricity required for the irrigation systems and hardwire telephone connections at upgraded irrigation controllers, monitored by City Staff.
Landscape Rehabilitation & Vandalism — Landscap e projects, which significantly benefit and upgrade a specific Landscape Maintenance District . These costs reflect only a proportional share of the entire cost of the project and are noted because the amount of design, planning, coordination and execution. This budget item represents a cost to the individual Landscape Maintenance District, which is representative and has been identified by the city as above normal routine landscape maintenance inspection.
Vandalism includes repairs and rehabilitation th at are generally unforeseen and not normally included in the yearly maintenance contract costs. This may include repair of damaged amenities due to vandalism, storms, frost, etc. These upgrades could include replacing plant materials and/or renovation of irrigation or lighting systems.
Capital Projects – This item includes major repairs or capital improvement projects.
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Administration Costs:
Administration & Overhead — The cost allocation of all particular departments and staff of the City, for providing general support, services and operations related to the various districts, enterprises and accounts of the City.
County Administration Fee — This is the estimated cost to the District for the County to collect District assessments on the property tax bills. This charge is based on a flat rate per fund number plus a charge per assessment levied.
Professional Services — This is the estimated cost to the District for th e Assessment Engineer to prepare this report and to calculate and submit the assessments to the Solano County Auditor’s office.
Levy Breakdown:
Operating Reserve Collection/(Transfer) — This budg et item is provided to illustrate collection by the District of funds to operate the District from the time period of July 1 (beginning of the Fiscal Year) through January or when the County provides the City with the first installment of assessments collected from the property tax b ills. Transfer amounts (Negative amounts) shown for this budget item represent transfers from th e reserve fund that reduces the Balance to Levy.
Maintaining an adequately funded reserve fund eliminates the need for the City to transfer funds from non-District accounts to pay for operational ex penses during the first half of the fiscal year and also provides the District with sufficient funds to address any unforeseen or unusual expenditures that may occur during the year.
Rehabilitation Fund Collection/(Transfer) — This bu dget item is provided to illustrate collection by the District of funds to cover costs of repairs, landscape maintenance that may be unforeseen and are not normally included in the yearly main tenance contract costs or for planned capital improvement projects. These amounts are held in or paid from the refurbishment/rehabilitation fund. Negative amounts shown for this budget item are transfers from the refurbishment/rehabilitation fund to be used to reduce the Balance to Levy. Transfer amounts (Negative amounts) will only occur after the pla nned projects have been completed and excess funds are being credited back to the District’s regular accounts. The refurbishment/rehabilitation fund eliminates the need for the City to tr ansfer funds from non-District accounts. The Rehabilitation fund can be utilized to cover operating costs should the revenue and reserve fund be insufficient.
Other Revenue Source — This item includes additional funds designated for the District that are not annual assessments. These funds are applied to reduce assessments, and may be from non- District or District sources including City General Fund Contributions and/or interest earnings. Any funds indicated on this line will be shown as a negative number indicating a reduction in the amount to be levied and represent funds that do not have to be repaid.
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Balance to Levy — This is the total amount to be collected for the current fiscal year through assessments. The Balance to Levy represents the sum of Total Direct and Administration Costs, Reserve collections or transfers, Rehabilitation co llections or transfers, contributions from other sources and contribution repayments. Only those costs related to the improvements identified as special benefits are levied and collected on the tax roll.
Districts Statistics:
Total Parcels Levied — The total number of pa rcels levied within the District boundary.
Anticipated Total Assessed Values/$100 — The sum of all the assessed values of all parcels within the District as established by the Solano County Assessor’s Office divided by $100.
Rate per $100 of AV — The established assessment rate to each one hundr ed dollars ($100) of assessed value of each parcel.
Minimum Cost Recovery Rate per $100 of AV— Th e estimated assessment rate to each one hundred dollars ($100) of assessed value of each parcel to recover sufficient revenue for the District Direct, Administration and Rehabilitation costs.
Fund Balance Information:
Beginning Operating Reserve Fund Balance — The projected reserve fund balance as provided by the City of Vallejo.
Operating Reserve Fund Adjustments — Positive amounts shown for this budget item represent additions to the reserve fund from levy revenue exceeding the total of all Direct, District Administration and Rehabilitation Costs. Surplus levy revenue is allocated to the reserve fund until the balance is equivalent to six months of levy revenue. The reserve fund negative amounts shown for this budget item represent transfers from the reserve fund to be used to reduce the Balance to Levy as a result of total Di rect and District Administration Co sts exceeding total levy revenue.
Additionally, negative amounts shown for this budget item may represent a reduction of the reserve fund balance in excess of six months of levy revenue; excess balances may be used to increase the refurbishment/rehabilitation fund.
Anticipated Operating Reserve Balance — The projected ending balance in the reserve fund as based on activity provided by the City of Vallejo. A negative Operating Reserve Fund balance represents cumulative contributions from the General Fund.
Beginning Rehabilitation Reserve Fund Balance — The projected rehabilitation fund balance as provided by the City of Vallejo.
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Rehabilitation Reserve Fund Adjustments — Positive amounts shown for this budget item represents additions to the rehabilitation fund from levy revenue. The rehabilitation fund negative amounts shown for this budget item represent transfers from the rehabilitation fund to be used to reduce the Balance to Levy as a result of excess funds on project completion.
Anticipated Rehabilitation Reserve Balance — The projected ending balance in the rehabilitation fund as based on activity provided by the City of Vallejo. A negative Rehabilitation Reserve Fund balance represents cumulative contributions from the General Fund.
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Description of the Districts and Budgets
Cimarron Hills – Madigan Ranch
The Cimarron Hills – Madigan Ranch Landscape Maintenance District serves a residential neighborhood of ten developments located in northeast Vallejo. The District is fully developed.
Special District Features
The District was formed in 1979.
The District has 12 acres of native and ornamental ground cover, shrubbery and trees. The District has 13 acres of weed control and plantings. Weed control in open space areas assists in fire protection. Ad Valorem rate per $100 of assessed valuation: Current Rate: $0.162, Maximum Rate:
$1.50.
Boundaries
The District lies within the City of Vallejo, generally located within the area bounded by Fairgrounds Drive, Napa County line, Borges Lane , and Griffin Drive including open space below Highway 80.
Improvements
The District maintains landscaping and weed control on the following areas:
Along Fairgrounds Drive near the intersection of Taper to the Napa County Line. Borges Lane to Griffin Drive.
Open space below Highway 80 including the water tank site.
Financial Information
The Direct Costs of the District have decrease d from fiscal year 2022-2023 to fiscal year 2023- 2024 due to completed landscape rehabilitation pr ojects. The proposed assessment is below the maximum rate and is considered an exempt a ssessment pursuant to Californian Constitution Article XIIID Section 5(b).
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
The amounts identified as “Landscape Rehabilitation” or “Capital Projects” may be budgeted and spent each fiscal year as shown, or collected and held for the future in the Rehabilitation Fund.
The program can also draw from the Operating Reserve Fund as necessary if funds are in excess of six months of levy revenue. Replacement, rehabilitation or refurbishment of the improvements is an essential part of maintenance, but these projects and expenses will often impact the long- term financial stability of the District. Prior to the implementation of any rehabilitation plan, the City should closely evaluate the merits of the project.
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Direct Costs 2023-24 Budget
Contract Maintenance Costs $52,145
Salaries & Benefits $36,754
Services & Supplies $4,478
Landscape Water $27,151
Utilities $1,680
Landscape Rehabilitation / Vandalism $15,000
Capital Projects $0
Total Direct Costs $137,208
Administration Costs
Administration & Overhead $16,937
County Administration Fees $0
Professional Fees $2,088
Total Administration Costs $19,025
Collections / (Credits) Applied To Levy
Total Direct and Administration Costs $156,233
Contribution to / (from) Reserve Fund $0
Contribution to / (from) Rehabilitation Fund $228,670
Contribution (from) General Fund / Other Revenue ($12,616) Balance to Levy $372,287
District Statistics
Total Parcels 811
Total Parcels Levied 811
Anticipated Total Assessed Value / $100 $2,298,070.16
Proposed Rate per $100 of Assessed Value $0.162
Maximum Rate per $100 of Assessed Value $1.50
Total Assessment Levy $372,287.37
Fund Balance Information
Beginning Operating Reserve Fund Balance $78,116.50
Operating Reserve Fund Adjustments $0.00
Anticipated Operating Reserve Fund Balance $78,116.50
Beginning Rehabilitation Reserve Fund Balance $1,965,851.50 Rehabilitation Reserve Fund Adjustments $228,670.00
Anticipated Rehabilitation Reserve Fund Balance $2,194,521.50 Anticipated Total Ending Fund Balance $2,272,638.00
Estimate of Cost
City of Vallejo
Cimarron Hills / Madigan Ranch Landscape Maintenance District Fund Number 0189 (#171)
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Recommendations
The Reserve Fund balance for the District is adequately funded.
The following are recommendations to the City:
Ensure the District Reserve Fund remains adequately funded. Consider decreasing the assessment rate if direct costs are anticipated to remain at the current level.
College Hills
The College Hills Landscape Maintenance District (District) is a residential neighborhood consisting of two developments located in northeast Vallejo. The District is fully developed.
Special District Features
The District was formed in 1977.
The District has 2 acres of ornamental and native ground cover, shrubbery, and trees. The District has 0.5 acre of weed control and plantings. Weed control in open space areas assists in fire protection. Concrete walkway and sound wall.
Ad Valorem rate per $100 of assessed valuation: Current Rate: $0.100, Maximum Rate:
$1.50.
Boundaries
The District lies within the city of Vallejo, generally located within the area bounded by Fairgrounds Drive, Whitney Avenue, and Olympic Drive.
Improvements
The District maintains landscaping and weed control in the following areas:
Slope along the west side of Fairgrounds Drive, including the concrete walkway and sound wall.
North side of Whitney Avenue, between Fairgrounds Drive and Pembroke Drive. Easement behind Chapman and above Frodham Circle up to the access walkway.
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Financial Information
The Direct Costs of the District have slightly increased from fiscal year 2022-2023 to fiscal year 2023-2024 due to increased maintenance costs. The proposed assessment is below the maximum rate and is considered an exempt assessment pursuant to Californian Constitution Article XIIID Section 5(b).
The amounts identified as “Landscape Rehabilitation” or “Capital Projects” may be budgeted and spent each fiscal year as shown, or collected and held for the future in the Rehabilitation Fund.
The program can also draw from the Operating Reserve Fund as necessary if funds are in excess of six months of levy revenue. Replacement, rehabilitation or refurbishment of the improvements is an essential part of maintenance, but these projects and expenses will often impact the long- term financial stability of the District. Prior to the implementation of any rehabilitation plan, the City should closely evaluate the merits of the project.
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Direct Costs 2023-24 Budget
Contract Maintenance Costs $12,176
Salaries & Benefits $8,073
Services & Supplies $984
Landscape Water $1,086
Utilities $818
Landscape Rehabilitation / Vandalism $7,000
Capital Projects $0
Total Direct Costs $30,137
Administration Costs
Administration & Overhead $3,720
County Administration Fees $0
Professional Fees $281
Total Administration Costs $4,001
Collections / (Credits) Applied To Levy
Total Direct and Administration Costs $34,138
Contribution to / (from) Reserve Fund $0
Contribution to / (from) Rehabilitation Fund $18,588
Contribution (from) General Fund / Other Revenue ($2,495) Balance to Levy $50,231
District Statistics
Total Parcels 213
Total Parcels Levied 213
Anticipated Total Assessed Value / $100 $502,306.13
Proposed Rate per $100 of Assessed Value $0.100
Maximum Rate per $100 of Assessed Value $1.50
Total Assessment Levy $50,230.61
Fund Balance Information
Beginning Operating Reserve Fund Balance $17,069.00
Operating Reserve Fund Adjustments $0.00
Anticipated Operating Reserve Fund Balance $17,069.00
Beginning Rehabilitation Reserve Fund Balance $317,605.00 Rehabilitation Reserve Fund Adjustments $18,588.00
Anticipated Rehabilitation Reserve Fund Balance $336,193.00 Anticipated Total Ending Fund Balance $353,262.00
Estimate of Cost
City of Vallejo
College Hills Landscape Maintenance District
Fund Number 0119 (#175)
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Recommendations
The Reserve Fund balance for the District is adequately funded. The following are recommendations to the City:
Ensure the District Reserve Fund remains adequately funded. Consider decreasing the assessment rate if direct costs are anticipated to remain at the current level.
Sea View (Costa Del Rio)
The District lies within the City of Vallejo, generally located within the area bounded by Seaport Drive, Seawind Drive, Moonraker Drive, Sea Crest, and Schooner Way.
Special District Features
The District was formed in 1980.
The District has 5 acres of native and ornamental ground cover, shrubbery and trees.
The District has 1.5 acre of weed control and plantings.
Weed control in open space areas assists in fire protection.
Ad Valorem rate per $100 of assessed valuation: Current Rate: $0.287, Maximum Rate:
$4.00.
Boundaries
The District lies within the City of Vallejo, generally located within the area bounded by Seaport Drive, Seawind Drive, Moonraker Drive, Sea Crest, and Schooner Way.
Improvements
The District maintains landscaping and weed control in the following areas:
Landscaping and irrigation along Seaport Drive, Seawind Drive, Moonraker Drive, the upper most north facing slope of Sea Crest and Schooner Way. Open space weed control at the point on Seawind Drive. Street lights
Sidewalks including curbs, gutters and striping
Retaining walls
Street signs
Street maintenance
There are currently several rehabilitation projects in the District needed i.e. street paving, curb, gutter and sidewalk replacements, irrigation upgrades and vegetation replacement.
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Financial Information
The Direct Costs of the District have decrease d from fiscal year 2022-2023 to fiscal year 2023- 2024 due to decreased contract maintenance cost. As noted above there are several rehabilitation projects pending that the rehabilitation reserv e fund is currently not adequate to fund. The assessment was increased fiscal year 2017-2018 in order to accumulate enough funds to complete these projects in the future. The proposed a ssessment is below the maximum rate and is considered an exempt assessment pursuant to Californian Constitution Article XIIID Section 5(b).
The amounts identified as “Landscape Rehabilitation” or “Capital Projects” may be budgeted and spent each fiscal year as shown, or collected and held for the future in the Rehabilitation Fund.
The program can also draw from the Operating Reserve Fund as necessary if funds are in excess of six months of levy revenue. Replacement, rehabilitation or refurbishment of the improvements is an essential part of maintenance, but these projects and expenses will often impact the long- term financial stability of the District. Prior to the implementation of any rehabilitation plan, the City should closely evaluate the merits of the project.
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Direct Costs 2023-24 Budget
Contract Maintenance Costs $15,574
Salaries & Benefits $23,967
Services & Supplies $2,920
Landscape Water $27,151
Utilities $360
Landscape Rehabilitation / Vandalism / Street Sweeping $19,500 Capital Projects $0
Total Direct Costs $89,472
Administration Costs
Administration & Overhead $11,045
County Administration Fees $0
Professional Fees $737
Total Administration Costs $11,782
Collections / (Credits) Applied To Levy
Total Direct and Administration Costs $101,254
Contribution to / (from) Reserve Fund $0
Contribution to / (from) Rehabilitation Fund $34,026
Contribution (from) General Fund / Other Revenue ($3,610) Balance to Levy $131,670
District Statistics
Total Parcels 125
Total Parcels Levied 125
Anticipated Total Assessed Value / $100 $458,781.89
Proposed Rate per $100 of Assessed Value $0.287
Maximum Rate per $100 of Assessed Value $4.00
Total Assessment Levy $131,670.40
Fund Balance Information
Beginning Operating Reserve Fund Balance $50,627.00
Operating Reserve Fund Adjustments $0.00
Anticipated Operating Reserve Fund Balance $50,627.00
Beginning Rehabilitation Reserve Fund Balance $482,443.00 Rehabilitation Reserve Fund Adjustments $34,026.00
Anticipated Rehabilitation Reserve Fund Balance $516,469.00 Anticipated Total Ending Fund Balance $567,096.00
Estimate of Cost
City of Vallejo
Seaview (Costa Del Rio) Landscape Maintenance District
Fund Number 0121 (#166)
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Recommendations
The Reserve Fund balance for the District is not adequately funded due to pending rehabilitation projects in the District.
The following are recommendations to the City:
Ensure the District Reserve Fund adequately funded.
Increase the assessment in the future in order to provide adequate funding of capital improvement and rehabilitation projects.
Glen Cove I & II
The Glen Cove One and Two Landscape Maintenance District (District) serves a residential neighborhood located in southeast Vallejo. The District is fully developed.
Special District Features
The District was formed in 1978 with three annexations occurring in 1979 and 1980. The District has 3 acre of ornamental and native landscaping which includes ground cover, shrubbery and trees.
The District has 7 acres of weed control and plantings. Weed control in open space areas assists in fire protection. Ad Valorem rate per $100 of assessed valuation: Current Rate: $0.19, Maximum Rate:
$1.50.
Boundaries
The District lies within the City of Vallejo, generally located within the area bounded by Honeydew Drive, Highway 780, Peppercorn & Wildberry Court, Wildflower Drive, Shady Lane and Silktree Lane.
Improvements
The District maintains landscaping and weed control in the following areas:
South side of the street just across from the entrance to the shopping center and east to the rear fence line of lot 60 on Honeydew Drive.
Stonewood Court cul-de-sac along the east side of the Highway 780 fence line and along the rear yard fences of Peppercorn and Wildberry Court. East and west sides of Shady Lane to Wildflower Drive including the v-ditches and fence line of Highway 780.
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Downhill slope side of Wildflower Drive including the v-ditches and the out fall structures as well as the siltation basin on Wildflower Drive. The east and west sides of Silktree up to the fence lines on each side. The median island on Bluebell Place and the landscaped slopes of Wildflower, Ironwood, Buckeye, Applenut, and Dogwood Lane.
Financial Information
The Direct Costs of the District have decrease d from fiscal year 2022-2023 to fiscal year 2023- 2024 due to decreased contract maintenance costs. The proposed assessment is below the maximum rate and is considered an exempt a ssessment pursuant to Californian Constitution Article XIIID Section 5(b).
The amounts identified as “Landscape Rehabilitation” or “Capital Projects” may be budgeted and spent each fiscal year as shown, or collected and held for the future in the Rehabilitation Fund.
The program can also draw from the Operating Reserve Fund as necessary if funds are in excess of six months of levy revenue. Replacement, rehabilitation or refurbishment of the improvements is an essential part of maintenance, but these projects and expenses will often impact the long- term financial stability of the District. Prior to the implementation of any rehabilitation plan, the City should closely evaluate the merits of the project.
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Direct Costs 2023-24 Budget
Contract Maintenance Costs $31,638
Salaries & Benefits $24,624
Services & Supplies $3,000
Landscape Water $10,861
Utilities $1,800
Landscape Rehabilitation / Vandalism $20,000
Capital Projects $0
Total Direct Costs $91,923
Administration Costs
Administration & Overhead $11,347
County Administration Fees $0
Professional Fees $1,014
Total Administration Costs $12,361
Collections / (Credits) Applied To Levy
Total Direct and Administration Costs $104,284
Contribution to / (from) Reserve Fund $0
Contribution to / (from) Rehabilitation Fund $86,180
Contribution (from) General Fund / Other Revenue ($9,701) Balance to Levy $180,763
District Statistics
Total Parcels 239
Total Parcels Levied 239
Anticipated Total Assessed Value / $100 $951,384.19
Proposed Rate per $100 of Assessed Value $0.190
Maximum Rate per $100 of Assessed Value $1.50
Total Assessment Levy $180,763.00
Fund Balance Information
Beginning Operating Reserve Fund Balance $52,142.00
Operating Reserve Fund Adjustments $0.00
Anticipated Operating Reserve Fund Balance $52,142.00
Beginning Rehabilitation Reserve Fund Balance $1, 233,267.00 Rehabilitation Reserve Fund Adjustments $86,180.00
Anticipated Rehabilitation Reserve Fund Balance $1,319,447.00 Anticipated Total Ending Fund Balance $1,371,589.00
Estimate of Cost
City of Vallejo
Glen Cove I & II Landscape Maintenance District
Fund Number 0191 (#182)
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Recommendations
The Reserve Fund balance for the District is adequately funded.
The following are recommendations to the City:
Ensure the District Reserve Fund continues to be adequately funded. Decrease the assessment rate if direct costs are anticipated to remain at the current level in order to decrease the contribution to the Reserve Fund.
Greenmont – Se aport Hills
The Greenmont – Seaport Hills Landscape Maintenance District (District) serves a residential area of 4 developments located in northeast Vallejo. The District is fully developed.
Special District Features
The District was formed in 1978 with one annexation in 1979.
The District has 10 acres of ornamental and native landscaping which includes wild flowers and native grasses acting as ground cover, shrubbery and trees.
The entire District is treated as a weed control Di strict for purposes of fire protection when fire season is declared each year in May.
Ad Valorem rate per $100 of assessed valuation: Current Rate: $.032, Maximum Rate: $1.25.
Boundaries
The District lies within the City of Vallejo, generally located within the area bounded by Columbus Parkway, Greenmont Drive, and Devlin Drive.
Improvements
The District maintains landscaping and weed control in the following areas:
Slopes surrounding the residential neighborhood primarily overlooking Columbus Parkway and Greenmont Drive as well as Devlin Drive.
Financial Information
The Direct Costs of the District have not changed significantly from fiscal year 2022-2023 to fiscal year 2023-2024. The proposed assessment is belo w the maximum rate and is considered an exempt assessment pursuant to Californian Constitution Article XIIID Section 5(b).
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
The amounts identified as “Landscape Rehabilitation” or “Capital Projects” may be budgeted and spent each fiscal year as shown, or collected and held for the future in the Rehabilitation Fund.
The program can also draw from the Operating Reserve Fund as necessary if funds are in excess of six months of levy revenue. Replacement, rehabilitation or refurbishment of the improvements is an essential part of maintenance, but these projects and expenses will often impact the long- term financial stability of the District. Prior to the implementation of any rehabilitation plan, the City should closely evaluate the merits of the project.
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Direct Costs 2023-24 Budget
Contract Maintenance Costs $14,956
Salaries & Benefits $9,557
Services & Supplies $1,165
Landscape Water $0
Utilities $0
Landscape Rehabilitation / Vandalism $10,000
Capital Projects $0
Total Direct Costs $35,678
Administration Costs
Administration & Overhead $4,404
County Administration Fees $0
Professional Fees $234
Total Administration Costs $4,638
Collections / (Credits) Applied To Levy
Total Direct and Administration Costs $40,316
Contribution to / (from) Reserve Fund $0
Contribution to / (from) Rehabilitation Fund $3,683
Contribution (from) General Fund / Other Revenue ($2,123) Balance to Levy $41,876
District Statistics
Total Parcels 407
Total Parcels Levied 407
Anticipated Total Assessed Value / $100 $1,308,636.46
Proposed Rate per $100 of Assessed Value $0.032
Maximum Rate per $100 of Assessed Value $1.25
Total Assessment Levy $41,876.37
Fund Balance Information
Beginning Operating Reserve Fund Balance $20,158.00
Operating Reserve Fund Adjustments $0.00
Anticipated Operating Reserve Fund Balance $20,158.00
Beginning Rehabilitation Reserve Fund Balance $211,052.00 Rehabilitation Reserve Fund Adjustments $3,683.00
Anticipated Rehabilitation Reserve Fund Balance $214,735.00 Anticipated Total Ending Fund Balance $234,893.00
Estimate of Cost
City of Vallejo
Greenmont Seaport Hills Landscape Maintenance District
Fund Number 0187 (#168)
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Recommendations
The Reserve Fund balance for the District is adequately funded.
The following are recommendations to the City:
Ensure the District Reserve Fund remains adequately funded. Consider decreasing the assessment rate if direct costs are anticipated to remain at the current level.
Hunter Ranch I/II
The Hunter Ranch I/II Landscape Maintenance Dist rict serves a residential neighborhood of two developments located in northeast Vallejo. The District is fully developed.
Special District Features
The District was initially formed in 1981.
The District has 2 acres of native and ornamental ground cover, shrubbery and trees. The District has 6 acres of plantings and weed control. Weed control in open areas assists in fire protection. Ad Valorem rate per $100 of assessed valuation: Current Rate: $.100, Maximum Rate: $1.50.
Boundaries
The District lies within the City of Vallejo, generally located within the areas bounded by Foothill Drive, Sterling Drive, Redwood Parkway, and Doncaster.
Improvements
The District maintains landscaping and weed control in the following areas:
South side of Sterling from the sound wall at Ascot Drive to the curve at Legend Drive. North and south sides of each crossing at Clydesdale, Pacer, and Dapples Drives including the open spaces between each street crossing to Redwood Parkway behind the fence line.
Landscaping strip on the east and west side of the intersection of Doncaster and Redwood Parkway.
Planned capital improvement projects include remove and replace landscape and irrigation to keep up with current standards.
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Financial Information
The Direct Costs of the District have decrease d from fiscal year 2022-2023 to fiscal year 2023- 2024 due to decreased contract maintenance cost. The proposed assessment is below the maximum rate and is considered an exempt a ssessment pursuant to Californian Constitution Article XIIID Section 5(b).
The amounts identified as “Landscape Rehabilitation” or “Capital Projects” may be budgeted and spent each fiscal year as shown, or collected and held for the future in the Rehabilitation Fund.
The program can also draw from the Operating Reserve Fund as necessary if funds are in excess of six months of levy revenue. Replacement, rehabilitation or refurbishment of the improvements is an essential part of maintenance, but these projects and expenses will often impact the long- term financial stability of the District. Prior to the implementation of any rehabilitation plan, the City should closely evaluate the merits of the project.
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Direct Costs 2023-24 Budget
Contract Maintenance Costs $6,798
Salaries & Benefits $12,740
Services & Supplies $1,552
Landscape Water $16,291
Utilities $180
Landscape Rehabilitation / Vandalism $10,000
Capital Projects $0
Total Direct Costs $47,561
Administration Costs
Administration & Overhead $5,871
County Administration Fees $0
Professional Fees $622
Total Administration Costs $6,493
Collections / (Credits) Applied To Levy
Total Direct and Administration Costs $54,054
Contribution to / (from) Reserve Fund $0
Contribution to / (from) Rehabilitation Fund $62,998
Contribution (from) General Fund / Other Revenue ($6,480) Balance to Levy $110,572
District Statistics
Total Parcels 377
Total Parcels Levied 377
Anticipated Total Assessed Value / $100 $1,105,720.11
Proposed Rate per $100 of Assessed Value $0.100
Maximum Rate per $100 of Assessed Value $1.50
Total Assessment Levy $110,572.01
Fund Balance Information
Beginning Operating Reserve Fund Balance $27,027.00
Operating Reserve Fund Adjustments $0.00
Anticipated Operating Reserve Fund Balance $27,027.00
Beginning Rehabilitation Reserve Fund Balance $790,522.00 Rehabilitation Reserve Fund Adjustments $62,998.00
Anticipated Rehabilitation Reserve Fund Balance $853,520.00 Anticipated Total Ending Fund Balance $880,547.00
Estimate of Cost
City of Vallejo
Hunter Ranch I & II Landscape Maintenance District
Fund Number 0172 (#181)
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Recommendations
The Reserve Fund balance for the District is adequately funded.
The following are recommendations to the City:
Ensure the District Reserve Fund remains adequately funded. Decrease the assessment rate provided the current level of service is unchanged and there are no unforeseen expenditures in order to decrease the contribution to the Reserve Fund.
Monica Place
The Monica Place Landscape Main tenance District (District) serv es a residential neighborhood located in northeast Vallejo. The District is fully developed.
Special District Features
The District was formed in 1976.
The District has 1,000 square feet of weed control and plantings. Landscape is ornamental ground cover.
Weed control areas along Monica Place assist in fire protection and protection of the asphalt.
Ad Valorem rate per $100 of assessed valuation: Current Rate: $.187, Maximum Rate:
$1.25.
Boundaries
The District lies within the City of Vallejo, generally located along the roadside of Monica Place.
Improvements
The District maintains weed control easements found along the edge of the asphalt and behind the sidewalk along Monica Place.
Financial Information
The Direct Costs of the District have decrease d from fiscal year 2022-2023 to fiscal year 2023- 2024 due to decreased contract maintenance cost. The proposed assessment is below the maximum rate and is considered an exempt a ssessment pursuant to Californian Constitution Article XIIID Section 5(b).
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
The amounts identified as “Landscape Rehabilitation” or “Capital Projects” may be budgeted and spent each fiscal year as shown, or collected and held for the future in the Rehabilitation Fund.
The program can also draw from the Operating Reserve Fund as necessary if funds are in excess of six months of levy revenue. Replacement, rehabilitation or refurbishment of the improvements is an essential part of maintenance, but these projects and expenses will often impact the long- term financial stability of the District. Prior to the implementation of any rehabilitation plan, the City should closely evaluate the merits of the project.
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Direct Costs 2023-24 Budget
Contract Maintenance Costs $309
Salaries & Benefits $0
Services & Supplies $0
Landscape Water $0
Utilities $0
Landscape Rehabilitation / Vandalism $0
Capital Projects $0
Total Direct Costs $309
Administration Costs
Administration & Overhead $0
County Administration Fees $0
Professional Fees $18
Total Administration Costs $18
Collections / (Credits) Applied To Levy
Total Direct and Administration Costs $327
Contribution to / (from) Reserve Fund $0
Contribution to / (from) Rehabilitation Fund $2,925
Contribution (from) General Fund / Other Revenue ($302) Balance to Levy $2,950
District Statistics
Total Parcels 5
Total Parcels Levied 5
Anticipated Total Assessed Value / $100 $15,777.72
Proposed Rate per $100 of Assessed Value $0.187
Maximum Rate per $100 of Assessed Value $1.25
Total Assessment Levy $2,950.43
Fund Balance Information
Beginning Operating Reserve Fund Balance $163.50
Operating Reserve Fund Adjustments $0.00
Anticipated Operating Reserve Fund Balance $163.50
Beginning Rehabilitation Reserve Fund Balance $38,361.50 Rehabilitation Reserve Fund Adjustments $2,925.00
Anticipated Rehabilitation Reserve Fund Balance $41,286.50 Anticipated Total Ending Fund Balance $41,450.00
Estimate of Cost
City of Vallejo
Monica Place Road Landscape Maintenance District
Fund Number 0163 (#167)
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Recommendations
The Reserve Fund balance for the District is adequately funded.
The following are recommendations to the City:
Ensure the District Reserve Fund remains adequately funded. Consider decreasing the assessment in the future provided the current level of service is unchanged and there are no unforeseen expenditures.
Ridgecrest
The Ridgecrest Point Landscape Maintenance District (District) serves a residential neighborhood located in northeast Vallejo. The District is fully developed.
Special District Features
The District was formed in 1978.
Ad Valorem rate per $100 of assessed valuation: Current Rate: $0.115, Maximum Rate:
$1.50.
The District is composed of six Pacific Gas & Electric easements and one area of ornamental plantings. The PG&E easements are composed of four with ornamental plants and two with weed height control and native/drought resistant plants. Weed control assists in fire protection.
Boundaries
The District lies within the City of Vallejo, generally located within the Woodvale Court cul-de-sac and the area bounded by Sylvia Court, Hale Str eet, Delgado Street, Clatyon Court, Elna Drive, Henry Street, and Woodvale Court.
Improvements
The District maintains landscaping and weed control in the following areas:
The PG&E easements found within chain-link fence enclosures on each side of Woodvale Street crossing extending north to and crossing Skyline Drive and along the south side of Goheen Circle
Rear yard fence lines.
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Financial Information
The Direct Costs of the District have decrease d from fiscal year 2022-2023 to fiscal year 2023- 2024 due to decreased contract maintenance cost. This propos ed assessment is below the maximum rate and is considered an exempt a ssessment pursuant to Californian Constitution Article XIIID Section 5(b).
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Direct Costs 2023-24 Budget
Contract Maintenance Costs $14,832
Salaries & Benefits $0
Services & Supplies $0
Landscape Water $4,000
Utilities $0
Landscape Rehabilitation / Vandalism $15,000
Capital Projects $0
Total Direct Costs $33,832
Administration Costs
Administration & Overhead $0
County Administration Fees $0
Professional Fees $372
Total Administration Costs $372
Collections / (Credits) Applied To Levy
Total Direct and Administration Costs $34,204
Contribution to / (from) Reserve Fund $0
Contribution to / (from) Rehabilitation Fund $32,429
Contribution (from) General Fund / Other Revenue ($166) Balance to Levy $66,467
District Statistics
Total Parcels 171
Total Parcels Levied 171
Anticipated Total Assessed Value / $100 $577,976.14
Proposed Rate per $100 of Assessed Value $0.115
Maximum Rate per $100 of Assessed Value $1.50
Total Assessment Levy $66,467.26
Fund Balance Information
Beginning Operating Reserve Fund Balance $17,102.00
Operating Reserve Fund Adjustments $0.00
Anticipated Operating Reserve Fund Balance $17,102.00
Beginning Rehabilitation Reserve Fund Balance $169,012.00 Rehabilitation Reserve Fund Adjustments $32,429.00
Anticipated Rehabilitation Reserve Fund Balance $201,441.00 Anticipated Total Ending Fund Balance $218,543.00
Estimate of Cost
City of Vallejo
Ridgecrest Landscape Maintenance District
Fund Number 0193 (#169)
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Recommendations
The Reserve Fund balance for the District is not adequately funded.
The following are recommendations to the City:
Ensure the District Reserve Fund is adequately funded. Consider decreasing the assessment in the future provided the current level of service is unchanged and there are no unforeseen expenditures.
Somerset Highlands (I/II)
The District lies within the City of Vallejo, generally located within the area bounded by Columbus Parkway, Georgia Street, and Regents Parkway.
Special District Features
The District was originally formed in 1975.
The District has 2 acres of native and ornamental ground cover, shrubbery and trees. The District has 5 acres of weed control.
Weed control in open space areas assists in fire protection. Ad Valorem rate per $100 of assessed valuation: Current Rate: $.06, Maximum Rate:
$1.25.
Boundaries
The District lies within the City of Vallejo, generally located within the area bounded by Columbus Parkway, Georgia Street, and Regents Parkway.
Improvements
The District maintains landscaping and weed control in the following areas:
Slope along Columbus Parkway from Georgia Street north to the rail fence and south to Regents Parkway.
Open space along Regents Parkway to Brunswick.
Financial Information
The Direct Costs of the District have not changed significantly from fiscal year 2022-2023 to fiscal year 2023-2024. The proposed assessment is belo w the maximum rate and is considered an exempt assessment pursuant to Californian Constitution Article XIIID Section 5(b).
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
The amounts identified as “Landscape Rehabilitation” or “Capital Projects” may be budgeted and spent each fiscal year as shown, or collected and held for the future in the Rehabilitation Fund.
The program can also draw from the Operating Reserve Fund as necessary if funds are in excess of six months of levy revenue. Replacement, rehabilitation or refurbishment of the improvements is an essential part of maintenance, but these projects and expenses will often impact the long- term financial stability of the District. Prior to the implementation of any rehabilitation plan, the City should closely evaluate the merits of the project.
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Direct Costs 2023-24 Budget
Contract Maintenance Costs $44,496
Salaries & Benefits $22,648
Services & Supplies $2,760
Landscape Water $4,344
Utilities $300
Landscape Rehabilitation / Vandalism $10,000
Capital Projects $0
Total Direct Costs $84,548
Administration Costs
Administration & Overhead $10,437
County Administration Fees $0
Professional Fees $587
Total Administration Costs $11,024
Collections / (Credits) Applied To Levy
Total Direct and Administration Costs $95,572
Contribution to / (from) Reserve Fund $0
Contribution to / (from) Rehabilitation Fund $12,504
Contribution (from) General Fund / Other Revenue ($3,318) Balance to Levy $104,758
District Statistics
Total Parcels 533
Total Parcels Levied 533
Anticipated Total Assessed Value / $100 $1,745,958.75
Proposed Rate per $100 of Assessed Value $0.060
Maximum Rate per $100 of Assessed Value $1.25
Total Assessment Levy $104,757.53
Fund Balance Information
Beginning Operating Reserve Fund Balance $47,786.00
Operating Reserve Fund Adjustments $0.00
Anticipated Operating Reserve Fund Balance $47,786.00
Beginning Rehabilitation Reserve Fund Balance $330,507.00 Rehabilitation Reserve Fund Adjustments $12,504.00
Anticipated Rehabilitation Reserve Fund Balance $343,011.00 Anticipated Total Ending Fund Balance $390,797.00
City of Vallejo
Somerset Highlands I & II Landscape Maintenance District Fund Number 0109 (#173)
Estimate of Cost
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Recommendations
The Reserve Fund balance for the District is adequately funded.
The following are recommendations to the City:
Ensure the District Reserve Fund remains adequately funded.
Somerset Highlands III
The Somerset Highlands Three Landscape Maintena nce District (District) serves a residential neighborhood located in northeast Vallejo. The District is fully developed.
Special District Features
The District was formed in 1981.
The District has 7 acres of native and ornamental ground cover, shrubbery and trees.
The District has 4 acres of weed control.
Weed control in open space areas assists in fire protection.
Ad Valorem rate per $100 of assessed valuation: Current Rate: $.144, Maximum Rate:
$1.50.
Boundaries
The District lies within the City of Vallejo, generally located within the area bounded by Locust Drive, Ascot Parkway, Columbus Parkway, and Rock Springs Golf Course.
Improvements
The District maintains landscaped areas and weed control in the following areas:
Landscape slope along the east and west side of Ascot Parkway. Medians from just south of Hawksbury Drive to the intersection of Columbus Parkway to the end of the sound wall along the north side of Columbus Parkway. Strip of landscaping running along two hundred feet east of the intersection of Columbus and Ascot Parkways at the sound wall to the back of the curb. Interior slope beneath the power lines and slope overlooking the Blue Rock Springs Golf Course.
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Financial Information
The Direct Costs of the District have decrease d from fiscal year 2022-2023 to fiscal year 2023- 2024 due to decreased contract maintenance costs. The proposed assessment is below the maximum rate and is considered an exempt a ssessment pursuant to Californian Constitution Article XIIID Section 5(b).
The amounts identified as “Landscape Rehabilitation” or “Capital Projects” may be budgeted and spent each fiscal year as shown, or collected and held for the future in the Rehabilitation Fund.
The program can also draw from the Operating Reserve Fund as necessary if funds are in excess of six months of levy revenue. Replacement, rehabilitation or refurbishment of the improvements is an essential part of maintenance, but these projects and expenses will often impact the long- term financial stability of the District. Prior to the implementation of any rehabilitation plan, the City should closely evaluate the merits of the project.
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Direct Costs 2023-24 Budget
Contract Maintenance Costs $11,124
Salaries & Benefits $13,691
Services & Supplies $1,668
Landscape Water $11,947
Utilities $180
Landscape Rehabilitation / Vandalism $12,500
Capital Projects $0
Total Direct Costs $51,110
Administration Costs
Administration & Overhead $6,309
County Administration Fees $0
Professional Fees $669
Total Administration Costs $6,978
Collections / (Credits) Applied To Levy
Total Direct and Administration Costs $58,088
Contribution to / (from) Reserve Fund $0
Contribution to / (from) Rehabilitation Fund $62,123
Contribution (from) General Fund / Other Revenue ($1,111) Balance to Levy $119,100
District Statistics
Total Parcels 233
Total Parcels Levied 233
Anticipated Total Assessed Value / $100 $827,080.81
Proposed Rate per $100 of Assessed Value $0.144
Maximum Rate per $100 of Assessed Value $1.50
Total Assessment Levy $119,099.64
Fund Balance Information
Beginning Operating Reserve Fund Balance $29,044.00
Operating Reserve Fund Adjustments $0.00
Anticipated Operating Reserve Fund Balance $29,044.00
Beginning Rehabilitation Reserve Fund Balance $169,117.00 Rehabilitation Reserve Fund Adjustments $62,123.00
Anticipated Rehabilitation Reserve Fund Balance $231,240.00 Anticipated Total Ending Fund Balance $260,284.00
City of Vallejo
Somerset Highlands III Landscape Maintenance District
Fund Number 0171 (#176)
Estimate of Cost
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Recommendations
The Reserve Fund balance for the District is not adequately funded.
The following are recommendations to the City:
Ensure the District Reserve Fund is adequately funded.
Springtree
The Springtree Landscape Maintenance District (District) serves a residential neighborhood consisting of four developments located in northeast Vallejo. The District is fully developed.
Special District Features
The District was formed in 1978 with one annexation in 1979. The District has 1 acre of native and ornamental ground cover, shrubbery and trees The District has 10 acres of weed control.
Weed control in open space areas assists in fire protection. Ad Valorem rate per $100 of assessed valuation: Current Rate: $.195, Maximum Rate:
$1.50.
Boundaries
The District lies within the City of Vallejo, generally located within the area bounded by Tuolumne Street, Guava Court, Platt and Wake Court, Pa rkview Terrace, Phoenix Circle and the water treatment fence line.
Improvements
The District maintains landscaping and weed control in the following areas:
Landscaping along Tuolumne Street starting from Parkview Terrace, Public LMD behind lot 7, ending at the intersection of Phoenix Circle.
South side of Tuolumne Street beginning at Ridgeview Drive and ending at the rear of lot 8 at Guava Court.
Behind the residences along the south side of Mitchell Court and Riverview Drive. Open space bounded by Platt and Wake Court and Parkview Terrace and the water treatment plant fence line.
Public LMD on the north side of Amber Avenue, south side adjoining the park.
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Public LMD situated below Phoenix Circle from lots 27-42 and behind the homes on Pepper Avenue.
Capital projects include remove and replace landscape and irrigation to keep up with current standards.
Financial Information
The Direct Costs of the District have decrease d from fiscal year 2022-2023 to fiscal year 2023- 2024 due to decreased contract maintenance costs. The proposed assessment is below the maximum rate and is considered an exempt a ssessment pursuant to Californian Constitution Article XIIID Section 5(b).
The amounts identified as “Landscape Rehabilitation” or “Capital Projects” may be budgeted and spent each fiscal year as shown, or collected and held for the future in the Rehabilitation Fund.
The program can also draw from the Operating Reserve Fund as necessary if funds are in excess of six months of levy revenue. Replacement, rehabilitation or refurbishment of the improvements is an essential part of maintenance, but these projects and expenses will often impact the long- term financial stability of the District. Prior to the implementation of any rehabilitation plan, the City should closely evaluate the merits of the project.
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Direct Costs 2023-24 Budget
Contract Maintenance Costs $26,325
Salaries & Benefits $19,612
Services & Supplies $2,390
Landscape Water $8,688
Utilities $1,200
Landscape Rehabilitation / Vandalism $15,000
Capital Projects $0
Total Direct Costs $73,215
Administration Costs
Administration & Overhead $9,038
County Administration Fees $0
Professional Fees $868
Total Administration Costs $9,906
Collections / (Credits) Applied To Levy
Total Direct and Administration Costs $83,121
Contribution to / (from) Reserve Fund $0
Contribution to / (from) Rehabilitation Fund $80,593
Contribution (from) General Fund / Other Revenue ($8,989) Balance to Levy $154,725
District Statistics
Total Parcels 297
Total Parcels Levied 297
Anticipated Total Assessed Value / $100 $793,463.22
Proposed Rate per $100 of Assessed Value $0.195
Maximum Rate per $100 of Assessed Value $1.50
Total Assessment Levy $154,725.33
Fund Balance Information
Beginning Operating Reserve Fund Balance $41,560.50
Operating Reserve Fund Adjustments $0.00
Anticipated Operating Reserve Fund Balance $41,560.50
Beginning Rehabilitation Reserve Fund Balance $1,164,493.50 Rehabilitation Reserve Fund Adjustments $80,593.33
Anticipated Rehabilitation Reserve Fund Balance $1,245,086.83 Anticipated Total Ending Fund Balance $1,286,647.33
City of Vallejo
Springtree Landscape Maintenance District
Fund Number 0192 (#172)
Estimate of Cost
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Recommendations
The Reserve Fund balance for the District is adequately funded.
The following are recommendations to the City:
Ensure the District Reserve Fund remains adequately funded. Consider decreasing the assessment in the future provided the current level of service is unchanged and there are no unforeseen expenditures.
Summit II
The Summit Two Landscape Maintenance District (District) serves a residential neighborhood made from two subdivisions located in northeast Vallejo. The District is fully developed.
Special District Features
The District was formed in 1978 with one annexation in 1979. The District has 3.5 acres of weed control.
Weed control in open space areas assists in fire protection. Ad Valorem rate per $100 of assessed valuation: Current Rate: $.095, Maximum Rate:
$1.50.
Boundaries
The District lies within the City of Vallejo, generally located within the area bounded by Hillview Drive, Sunrise Way and the P.G. & E. towers.
Improvements
The District maintains landscaping and weed control in the following areas:
Remove the hazardous tree conditions behind the homes on Hillview and Sunrise Drive.
Improve the fire protection grass control under the PGE power lines.
Financial Information
The Direct Costs of the District have not changed significantly from fiscal year 2022-2023 to fiscal year 2023-2024. The proposed assessment is belo w the maximum rate and is considered an exempt assessment pursuant to Californian Constitution Article XIIID Section 5(b).
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
The amounts identified as “Landscape Rehabilitation” or “Capital Projects” may be budgeted and spent each fiscal year as shown, or collected and held for the future in the Rehabilitation Fund.
The program can also draw from the Operating Reserve Fund as necessary if funds are in excess of six months of levy revenue. Replacement, rehabilitation or refurbishment of the improvements is an essential part of maintenance, but these projects and expenses will often impact the long- term financial stability of the District. Prior to the implementation of any rehabilitation plan, the City should closely evaluate the merits of the project.
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Direct Costs 2023-24 Budget
Contract Maintenance Costs $4,697
Salaries & Benefits $3,713
Services & Supplies $452
Landscape Water $0
Utilities $0
Landscape Rehabilitation / Vandalism $5,000
Capital Projects $0
Total Direct Costs $13,862
Administration Costs
Administration & Overhead $1,711
County Administration Fees $0
Professional Fees $280
Total Administration Costs $1,991
Collections / (Credits) Applied To Levy
Total Direct and Administration Costs $15,853
Contribution to / (from) Reserve Fund $0
Contribution to / (from) Rehabilitation Fund $36,703
Contribution (from) General Fund / Other Revenue ($2,751) Balance to Levy $49,805
District Statistics
Total Parcels 171
Total Parcels Levied 171
Anticipated Total Assessed Value / $100 $524,261.96
Proposed Rate per $100 of Assessed Value $0.095
Maximum Rate per $100 of Assessed Value $1.50
Total Assessment Levy $49,804.89
Fund Balance Information
Beginning Operating Reserve Fund Balance $7,926.50
Operating Reserve Fund Adjustments $0.00
Anticipated Operating Reserve Fund Balance $7,926.50
Beginning Rehabilitation Reserve Fund Balance $358,265.50 Rehabilitation Reserve Fund Adjustments $36,703.00
Anticipated Rehabilitation Reserve Fund Balance $394,968.50 Anticipated Total Ending Fund Balance $402,895.00
City of Vallejo
Summit II Landscape Maintenance District
Fund Number 0188 (#164)
Estimate of Cost
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Recommendations
The Reserve Fund balance for the District is adequately funded.
The following are recommendations to the City:
Ensure the District Reserve Fund remains adequately funded. Consider decreasing the assessment in the future provided the current level of service is unchanged and there are no unforeseen expenditures.
Town & Country
The Town & Country One Landscape Maintenance District (District) se rves a residential neighborhood located in northwest Vallejo. The District is fully developed.
Special District Features
The District was formed in 1980.
The District has 1.5 acres of ornamental shrubbery and trees. Weed control assists in fire protection.
Ad Valorem rate per $100 of assessed valuation: Current Rate: $.150, Maximum Rate:
$1.50.
Boundaries
The District lies within the City of Vallejo, generally located within the area bounded by Fairgrounds Drive, Marine World Parkway fence, and the North Vallejo Community Park Ball Field.
Improvements
The District maintains landscaping and weed control in the following areas:
Slope on Fairgrounds Drive from Marine World Parkway fence to the North Vallejo Community Park Ball Field.
Walkway from Basalt down to the North Vallejo Community Park Ball Field.
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Financial Information
The Direct Costs of the District have not changed significantly from fiscal 2022-2023 to fiscal year 2023-2024. The proposed assessment is below the ma ximum rate and is considered an exempt assessment pursuant to Californian Constitution Article XIIID Section 5(b).
The amounts identified as “Landscape Rehabilitation” or “Capital Projects” may be budgeted and spent each fiscal year as shown, or collected and held for the future in the Rehabilitation Fund.
The program can also draw from the Operating Reserve Fund as necessary if funds are in excess of six months of levy revenue. Replacement, rehabilitation or refurbishment of the improvements is an essential part of maintenance, but these projects and expenses will often impact the long- term financial stability of the District. Prior to the implementation of any rehabilitation plan, the City should closely evaluate the merits of the project.
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Direct Costs 2023-24 Budget
Contract Maintenance Costs $13,545
Salaries & Benefits $8,117
Services & Supplies $989
Landscape Water $2,172
Utilities $480
Landscape Rehabilitation / Vandalism $5,000
Capital Projects $0
Total Direct Costs $30,303
Administration Costs
Administration & Overhead $3,741
County Administration Fees $0
Professional Fees $272
Total Administration Costs $4,013
Collections / (Credits) Applied To Levy
Total Direct and Administration Costs $34,316
Contribution to / (from) Reserve Fund $0
Contribution to / (from) Rehabilitation Fund $15,386
Contribution (from) General Fund / Other Revenue ($1,212) Balance to Levy $48,490
District Statistics
Total Parcels 124
Total Parcels Levied 124
Anticipated Total Assessed Value / $100 $323,267.18
Proposed Rate per $100 of Assessed Value $0.150
Maximum Rate per $100 of Assessed Value $1.50
Total Assessment Levy $48,490.08
Fund Balance Information
Beginning Operating Reserve Fund Balance $17,158.00
Operating Reserve Fund Adjustments $0.00
Anticipated Operating Reserve Fund Balance $17,158.00
Beginning Rehabilitation Reserve Fund Balance $178,610.00 Rehabilitation Reserve Fund Adjustments $15,386.00
Anticipated Rehabilitation Reserve Fund Balance $193,996.00 Anticipated Total Ending Fund Balance $211,154.00
Estimate of Cost
City of Vallejo
Town & Country 1 Landscape Maintenance District
Fund Number 0122 (#165)
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Recommendations
The Reserve Fund balance for the District is adequately funded.
The following are recommendations to the City:
Ensure the District Reserve Fund remains adequately funded. Consider decreasing the assessment in the future provided the current level of service is unchanged and there are no unforeseen expenditures.
Woodridge
The Woodridge Landscape Maintenance District (District) serves a residential neighborhood located in northeast Vallejo. The District is fully developed.
Special District Features
The District was formed in 1977.
The District has 6 acres of native and ornamental ground cover, shrubbery and trees. The District has 11 acres of weed control.
Weed control in open space areas assists in fire protection. Ad Valorem rate per $100 of assessed valuation: Current Rate: $.071, Maximum Rate:
$1.50.
Boundaries
The District lies within the City of Vallejo, made up of several islands as generally located within the area bounded by Tennessee Street and Oakwood; Masonic Drive and Oakwood; Evergreen, Parhaven Court and Temple; Woodson Way, Blue Bird, Robin Courts, Skyline Drive and Blue Rock Springs Corridor.
Improvements
The District maintains landscaping and weed control in the following areas:
Landscaped slope along the north side of Tennessee Street behind Lain Court. Island at the corner of Tennessee and Oakwood, the easement directly west of the island and behind the homes of Bridge Court.
Easement off Evergreen Way on the south side bounded by the rear yard fences of Curtis and Springbrook.
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Easement open space up slope of Evergreen and behind Park Haven Court and down slope of Temple.
Open space between Masonic Drive and Oakwood just south of Justin Court. Open space above Woodson Way and below Blue Bid and Robin Courts. The rear slope of Wood Court, Skyline Drive, and Masonic Court above Blue Rock Springs Corridor including the eucalyptus grove to within one hundred feet of the creak at high stage.
Slope behind Creekview, Glenview, and the open space entrance to the rear slope and frontage along the creek behind the private frontage road along Redwood. The islands of Redwood and the frontage landscaping from just west of Foothill to Doncaster on the north side and 500 feet west of Topley on the south side.
Financial Information
The Direct Costs of the District have decrease d from fiscal year 2022-2023 to fiscal year 2023- 2024 due to decreased contract maintenance costs. The proposed assessment is below the maximum rate and is considered an exempt a ssessment pursuant to Californian Constitution Article XIIID Section 5(b).
The amounts identified as “Landscape Rehabilitation” or “Capital Projects” may be budgeted and spent each fiscal year as shown, or collected and held for the future in the Rehabilitation Fund.
The program can also draw from the Operating Reserve Fund as necessary if funds are in excess of six months of levy revenue. Replacement, rehabilitation or refurbishment of the improvements is an essential part of maintenance, but these projects and expenses will often impact the long- term financial stability of the District. Prior to the implementation of any rehabilitation plan, the City should closely evaluate the merits of the project.
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Direct Costs 2023-24 Budget
Contract Maintenance Costs $11,124
Salaries & Benefits $12,507
Services & Supplies $1,524
Landscape Water $11,295
Utilities $240
Landscape Rehabilitation / Vandalism $10,000
Capital Projects $0
Total Direct Costs $46,690
Administration Costs
Administration & Overhead $5,763
County Administration Fees $0
Professional Fees $533
Total Administration Costs $6,296
Collections / (Credits) Applied To Levy
Total Direct and Administration Costs $52,986
Contribution to / (from) Reserve Fund $0
Contribution to / (from) Rehabilitation Fund $44,717
Contribution (from) General Fund / Other Revenue ($2,714) Balance to Levy $94,989
District Statistics
Total Parcels 449
Total Parcels Levied 449
Anticipated Total Assessed Value / $100 $1,337,870.21
Proposed Rate per $100 of Assessed Value $0.071
Maximum Rate per $100 of Assessed Value $1.50
Total Assessment Levy $94,988.78
Fund Balance Information
Beginning Operating Reserve Fund Balance $26,493.00
Operating Reserve Fund Adjustments $0.00
Anticipated Operating Reserve Fund Balance $26,493.00
Beginning Rehabilitation Reserve Fund Balance $348,591.00 Rehabilitation Reserve Fund Adjustments $44,717.00
Anticipated Rehabilitation Reserve Fund Balance $393,308.00 Anticipated Total Ending Fund Balance $419,801.00
City of Vallejo
Woodridge Landscape Maintenance District
Fund Number 0118 (#174)
Estimate of Cost
City of Vallejo
Landscape Maintenance Districts
Overview Report, FY 2023-2024
Recommendations
The Reserve Fund balance for the District is adequately funded.
The following are recommendations to the City:
Ensure the District Reserve Fund remains adequately funded. Consider decreasing the assessment in the future provided the current level of service is unchanged and there are no unforeseen expenditures.
ACTION ITEM 9.B.
DATE: June 13, 2023
TO: Mayor and Members of the City Council
FROM: Melissa Tigbao, PE, Public Works Director
Jason Lacey, Landscape Maintenance Manager
SUBJECT: HOLD A PUBLIC HEARING AND ADOPT A RESOLUTION APPROVING THE ANNUAL
LEVY AND COLLECTION OF ASSESSMENTS ON PROPERTIES IN THE BORDONI RANCH, CARRIAGE OAKS, GARTHE RANCH, GLEN COVE III, GLEN COVE III 2015,
HUNTER RANCH III, MARINE WORLD/FAIRGROUNDS, MARINVIEW, NORTHEAST
QUADRANT, SANDPIPER POINT, SOUTH VALLEJO BUSINESS PARK, AND TOWN & COUNTRY II-V LANDSCAPE MAINTENANCE DISTRICTS FOR FISCAL YEAR 2023-2024
RECOMMENDATION
Hold a public hearing and adopt a resolution approving the levy and collection of assessments on properties in the Bordoni Ranch, Carriage Oaks, Garthe Ranch, Glen Cove III, Glen Cove III 2015, Hunter Ranch III, Marine World/Fairgrounds, Marinview, Northeast Quadrant, Sandpiper Point, South Vallejo Business Park, and Town & Country II-V Landscape Maintenance Districts for fiscal year 2023-2024.
REASONS FOR RECOMMENDATION
The City Council appointed SCI Consulting Group, Inc. as the Engineer of Work and directed it to prepare the Engineer's Report for the twelve LMDs. The Engineer’s Report identifies all assessable parcels in each LMD and was prepared pursuant to the Landscape and Lighting Act of 1972 and in compliance with Article XIIID of the California Constitution (Proposition 218).
BACKGROUND AND DISCUSSION
The City of Vallejo has 27 Landscape Maintenance Districts, thirteen of which were established in accordance with the Landscape and Lighting Act of 1972 (1972 Act), and fourteen of which were established in accordance with the Improvement Act of 1911 (1911 Act). The City Council will be considering the 1911 Act districts and the Hiddenbrooke Landscape Maintenance District under separate Council actions. Approval of this resolution formally establishes the FY 2023-2024 assessments for the following Landscape Maintenance Districts: Bordoni Ranch, Carriage Oaks, Garthe Ranch, Glen Cove III, Glen Cove III 2015, Hunter Ranch III, Marine World/Fairgrounds, Marinview, Northeast Quadrant, Sandpiper Point, South Vallejo Business Park, and Town and Country II-V. Several of the districts are broken further into different operational areas, and may have assessments that vary from one another.
An Engineer’s Report (hereafter referred to as “Report”) is prepared annually for each 1972 Act District. The Report analyzes each district based on “equivalent benefit units” (EBU). One EBU is applied to a single-family residence. Proposed assessments for each parcel are based on the special benefit received by the parcels within each district. The proposed FY 2023-2024 budget for each district is included as part of the Report.
The annual costs and expenses to provide and maintain the improvements in each district are assessed proportionately to those parcels within each district that receive special benefits from the improvements. With the exception of two districts, South Vallejo Business Park and Marine World/Fairgrounds, single-family residences make up the majority of parcels within the Landscape Maintenance Districts discussed herein.
Date: June 13, 2023
Subject: HOLD A PUBLIC HEARING AND ADOPT A RESOLUTION APPROVING THE ANNUAL
LEVY AND COLLECTION OF ASSESSMENTS ON PROPERTIES IN THE BORDONI
RANCH, CARRIAGE OAKS, GARTHE RANCH, GLEN COVE III, GLEN COVE III 2015, HUNTER RANCH III, MARINE WORLD/FAIRGROUNDS, MARINVIEW,
NORTHEAST QUADRANT, SANDPIPER POINT, SOUTH VALLEJO BUSINESS PARK,
AND TOWN & COUNTRY II-V LANDSCAPE MAINTENANCE DISTRICTS FOR FISCAL YEAR 2023-2024
Many of these districts were formed in the 1970s, when inflationary adjustments to the levies were disallowed.
Balloting was conducted, in accordance with Proposition 218, in fiscal year 2007-2008, at which time, all parcel owners within eight of these districts (Carriage Oaks, Garthe Ranch (does not include Garthe Ranch B), Glen Cove III, Hunter Ranch III, Marine World/Fairgrounds, Sandpiper Point, South Vallejo Business Park, and Town and Country II-V) were afforded the opportunity to increase the assessments in order to provide a higher level of service. All of these districts, with the exception of Marine World/Fairgrounds and South Vallejo Business Park, rejected the proposed increases. This has resulted in a continued reduction in the level of service that can be provided, which will continue until the parcel owners within such districts approve an increase to their assessment rates. In 2015, balloting was conducted again, in accordance with Proposition 218, in Glen Cove III. The ballot measure was approved, resulting in the formation of the Glen Cove III 2015 LMD.
Examples of reduced services in FY 2023-2024 are:
• The elimination of tree trimming and view enhancement • The elimination of fencing repairs
• Reduced irrigation service
• Reduction in the frequency of maintenance services
• Postponement of capital improvement projects
The FY 2023-2024 Report for the 1972 Act Districts is included as an attachment to this staff report and is also on file in the City Clerk’s Office (3rd Floor) and in the Department of Public Works (4th Floor), City Hall, 555 Santa Clara Street, Vallejo, CA 94590.
As reflected by the chart below, many of the districts are proposed to be levied at the same rate as during FY 2022-2023. The annual assessment rates for Glen Cove III 2015 are proposed to increase, as this district allows for an inflationary adjustment, to improve the level of service and set aside funds for future capital improvements. Consistent with Proposition 218, such increases are not considered new increased assessments that require that a notice and ballot be sent to property owners.
The following chart reflects both the approved FY 2022-2023 levy per parcel and the proposed FY 2023-2024 levy per parcel:
DISTRICT
APPROVED FY 2022-23
ASSESSMENT
PROPOSED FY 2023-24
ASSESSMENT
% CHANGE
Bordoni Ranch Zone 1 $ 392.99 $ 392.99 0%
Bordoni Ranch Zone 2 $ 270.33 $ 270.33 0%
Carriage Oaks $ 58.52 $ 58.52 0%
Garthe Ranch $ 128.46 $ 128.46 0%
Garthe Ranch
"B" (Highlands)
$ 2,075.42 $ 2,075.42 0%
Glen Cove III $ 155.14 $ 155.14 0%
Date: June 13, 2023
Subject: HOLD A PUBLIC HEARING AND ADOPT A RESOLUTION APPROVING THE ANNUAL
LEVY AND COLLECTION OF ASSESSMENTS ON PROPERTIES IN THE BORDONI
RANCH, CARRIAGE OAKS, GARTHE RANCH, GLEN COVE III, GLEN COVE III 2015, HUNTER RANCH III, MARINE WORLD/FAIRGROUNDS, MARINVIEW,
NORTHEAST QUADRANT, SANDPIPER POINT, SOUTH VALLEJO BUSINESS PARK,
AND TOWN & COUNTRY II-V LANDSCAPE MAINTENANCE DISTRICTS FOR FISCAL YEAR 2023-2024
Hunter Ranch III $ 72.04 $ 72.04 0%
Marine World-
Fairgrounds
$ 125.26 $ 125.26 0%
Marin View $ 636.00 $ 636.00 0%
Northeast
Quadrant
$ 287.24 $ 287.24 0%
Northeast
Quadrant Zone
A
$ 444.20 $ 444.20 0%
Sandpiper Point $ 141.76 $ 141.76 0%
South Vallejo
Business Park
$ 3,286.60 $ 3,286.60 0%
Town & Country
II-V
$ 70.48 $ 70.48 0%
Glen Cove III
2015 Zone A
$ 125.14 $ 131.25 4.88%
Glen Cove III
2015 Zone B
$ 122.66 $ 128.65 4.88%
Glen Cove III
2015 Zone C
$ 117.63 $ 123.37 4.88%
The proposed assessments comply with the provisions of Proposition 218. The total amount of funds to be assessed for these twelve 1972 Act Landscape Maintenance Districts in FY 2023-2024 is $2,578,353.79.
FISCAL IMPACT
There is no fiscal impact to the General Fund associated with this action.
Landscape District budgets are separate from the City’s General Fund. Landscape Maintenance District assessments finance the maintenance of improvements in the various districts. The Public Works Department costs for labor and materials associated with the Landscape Maintenance Districts are charged to the individual district budgets. All City costs associated with maintaining and administering the Districts are covered by the annual assessments. The total amount of funds to be assessed for these twelve 1972 Act Landscape Maintenance Districts in FY 2023-2024 is $2,578,353.79.
The financial health of the previously identified districts has been described in the Engineer’s Report. As noted in this report, required operating reserves will continue to be compromised and service levels reduced in those districts that have not had an increase to their assessment since their formation in the 1970s. FY 2023-2024 funding in the remaining districts is adequate to maintain the current minimal service levels and to sustain the required operating reserves.
Date: June 13, 2023
Subject: HOLD A PUBLIC HEARING AND ADOPT A RESOLUTION APPROVING THE ANNUAL
LEVY AND COLLECTION OF ASSESSMENTS ON PROPERTIES IN THE BORDONI
RANCH, CARRIAGE OAKS, GARTHE RANCH, GLEN COVE III, GLEN COVE III 2015, HUNTER RANCH III, MARINE WORLD/FAIRGROUNDS, MARINVIEW,
NORTHEAST QUADRANT, SANDPIPER POINT, SOUTH VALLEJO BUSINESS PARK,
AND TOWN & COUNTRY II-V LANDSCAPE MAINTENANCE DISTRICTS FOR FISCAL YEAR 2023-2024
ENVIRONMENTAL REVIEW
This action is exempt from the California Environmental Quality Act (CEQA) because it is not a project which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, pursuant to CEQA Guidelines section 15378.
ATTACHMENTS
1. Reso - Public Hearing 1972 LMDs_CAO Stamp
2. Vallejo 1972 Act ER 23-24
CONTACT
Melissa Tigbao, Public Works Director (707) 648-4433
[email protected]
RESOLUTION NO. 23-___ N.C.
A RESOLUTION APPROVING THE ENGINEER’S REPORT AND ORDERING THE LEVY OF ASSESSMENTS FOR FISCAL YEAR 2023-24 ON
PROPERTIES IN THE BORDONI RANCH, CARRIAGE OAKS, GARTHE
RANCH, GLEN COVE Ill, GLEN COVE Ill 2015, HUNTER RANCH Ill,
MARINE WORLD/FAIRGROUNDS, MARIN VIEW, NORTHEAST
QUADRANT, SANDPIPER POINT, SOUTH VALLEJO BUSINESS PARK, AND
TOWN AND COUNTRY II-V THE LANDSCAPE MAINTENANCE DISTRICTS WHEREAS, the City Council, by previous Resolution, has ordered the preparation of the Engineer’s Report (the “Report”) for the landscape maintenance districts designated as Bordoni Ranch; Carriage Oaks; Garthe Ranch; Glen Cove Ill; Glen Cove Ill 2015; Hunter Ranch Ill; Marine World/Fairgrounds; Marin View; Northeast Quadrant; Sandpiper Point; South Vallejo Business Park; Town and Country II-V (the “Districts”) pursuant to the provisions of the Landscape and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (the “Act”) that provides for the levy and collection of assessments to pay the costs and expenses of operating, maintaining and servicing the landscaping, and all appurtenant facilities and operations related thereto located within the Districts; and
WHEREAS, on June 13, 2023, at the hour of 7:00 p.m. at the City Council Chambers located at 555 Santa Clara Street, Vallejo, California, the City Council of the City of Vallejo held a public hearing on the question of the levy of the assessment, notice of which hearing was given as required by law; and
WHEREAS, all persons interested and desiring to be heard at the hearing were given an opportunity to be heard, and all matters and things pertaining to the levy were fully heard and considered by the City Council, and all oral statements and all written protests or communications were duly heard, considered and overruled, and this Council thereby acquired jurisdiction to order the levy and the confirmation of the diagram and assessment prepared by and made a part of the Engineer's Report to pay the costs and expenses thereof; and
WHEREAS, the City Council and its legal counsel have found that these assessments comply with applicable provisions of Article XIIID of the California State Constitution.
NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL AS FOLLOWS:
Section 1 The public interest, convenience and necessity require that the levy be made.
Section 2 The Districts benefited by the improvements and assessed to pay the costs and expenses thereof and the exterior boundaries thereof are as shown by a map filed in the office of the City Clerk, which map is made a part hereof by reference.
Section 3The Engineer's Report as a whole and each part thereof, to wit:
i) the Engineer's estimate of the itemized and total costs and expenses of maintaining the improvements and of the incidental expenses in connection therewith;
ii) the diagram showing the Districts, the plans and specifications for the improvements to be maintained, and the boundaries and dimensions of the respective lots and parcels of land within the Districts; and
iii) the assessment of the total amount of the costs and expenses of the proposed maintenance of the improvements upon the several lots and parcels of land in the Districts in proportion to the estimated special benefits to be received by said lots and parcels, and of the expenses incidental thereto;
are hereby approved and confirmed.
Section 4 Final adoption and approval of the Engineer's Report as a whole, and of the plans and specifications, the estimate of the costs and expenses, the diagram and the assessments, as contained in the Report as hereinabove determined and ordered, is intended to and shall refer and apply to the Report, or any portion thereof as amended, modified, revised or corrected by, or pursuant to and in accordance with, any resolution or order, if any, heretofore duly adopted or made by this Council.
Section 5 The assessments to pay the costs and expenses of the maintenance of the improvements for Fiscal Year 2023-2024 are hereby ordered to be levied.
Section 6 Based on the oral and documentary evidence, including the Engineer's Report, offered and received at the hearing, this Council expressly finds and determines (a) that each of the several lots and parcels of land will be specially benefited by the maintenance of the improvements at least in the amount if not more than the amount of the assessment apportioned against the lots and parcels of land, respectively, and (b) that there is substantial evidence to support, and the weight of the evidence preponderates in favor of, the aforesaid finding and determination as to special benefits.
Section 7 The Engineer’s Report as presented to the City Council and on file in the Office of the City Clerk is hereby confirmed as filed. The City Council hereby levies against and upon all of the real property within the Districts a special assessment per equivalent benefit unit for the Fiscal Year commencing on July 1, 2023 and ending June 30, 2024, as follows:
District
Bordoni Ranch Zone 01 $ 392.99
Bordoni Ranch Zone 02 $ 270.33
Carriage Oaks $ 58.52
Garthe Ranch $ 128.46
Garthe Ranch "B" (Highlands) $ 2,075.42
Glen Cove Ill $ 155.14
Hunter Ranch Ill $ 72.04
Marine World/Fairgrounds $ 125.26
Marinview $ 636.00
Northeast Quadrant $ 287.24
Northeast Quadrant Zone A $ 444.20
Sandpiper Point $ 141.76
So. Vallejo Bus. Park $ 3,286.60
Town & Country 11-V $ 70.48
Glen Cove III 2015 Zone A $ 131.25
Glen Cove III 2015 Zone B $ 128.65
Glen Cove III 2015 Zone C $ 123.37
Section 8 The maintenance, operation, and servicing of the improvements and appurtenant facilities shall be performed in accordance with the Act. The City Council hereby orders the following proposed improvements to be made: the maintenance and operation of, and the furnishing of services and materials for: turf, ground cover, shrubs and trees, irrigation systems, drainage systems, open space areas, public pedestrian paths, entry monuments, fencing, lighting systems and all appurtenant facilities related thereto.
Section 9 Immediately upon the adoption of this Resolution, but in no event later than the third Monday in August following such adoption, the City Clerk shall file a certified copy of the assessments and a certified copy of this Resolution with the Auditor of the County of Solano. Upon such filing, the County Auditor shall enter on the County assessment roll opposite each lot or parcel of land the amount of assessment thereupon as shown in the assessment. The assessments shall be collected at the same time and in the same manner as County taxes are collected and all laws providing for the collection and enforcement of County taxes shall apply to the collection and enforcement of the assessments. After collection by the County, the net amount of the assessments, after deduction of any compensation due the County for collection, shall be paid to the City of Vallejo, City Treasurer.
Section 10 The Finance Director shall deposit all money representing assessments collected by the County for the Districts to the credit of a fund for each of the Districts and such money shall be expended only for the maintenance, operation and servicing of each of the landscaping, lighting and appurtenant facilities as described in Section 8, above.
Adopted by the City Council of the City of Vallejo at a regular meeting held on June 13, 2023 with the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
ROBERT H. MCCONNELL, MAYOR
ATTEST:
________________________________
DAWN G. ABRAHAMSON, CITY CLERK
ENGINEER’S REPORT
City of Vallejo
Landscape Maintenance Districts
Fiscal Year 2023-24
Pursuant to the Landscaping and Lighting Act of
1972 and Article XIIID of the California Constitution
Page i
(This page intentionally left blank.)
Page ii
Table of Contents
Introduction ................................................................................................................. 1 Overview.................................................................................................................................... 1 Assessment Process .................................................................................................................. 2 Engineer’s Report ...................................................................................................................... 2 Assessment History ................................................................................................................... 3 Changes To The Landscape Maintenance Districts ........................................................ 6 Plans & Specifications .................................................................................................. 7 Description of the Landscape Maintenance Districts .................................................... 9 Method of Apportionment ......................................................................................... 48 Method of Apportionment ...................................................................................................... 48 Discussion of Benefit ............................................................................................................... 48 General versus Special Benefit ................................................................................................ 51 Benefit Finding ........................................................................................................................ 52 Method of Assessment ............................................................................................................ 55 Appeals and Interpretation ..................................................................................................... 58 Inflationary Adjustment .......................................................................................................... 58 Assessment ................................................................................................................ 61 Appendix A - 2023-2024 Assessment Roll ................................................................... 63 Appendix B - Assessment Diagram ............................................................................. 64
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
Page iii
(This page intentionally left blank.)
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
Introduction
Overview
The City of Vallejo (the “City”) annually levies and collects special assessments in order to maintain the improvements within the Landscape Maintenance Districts (“LMD” or “LMDs”). The LMDs have been formed pursuan t to the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code (the “1972 Act”).
This document includes the Engineer’s Repo rts (the “Reports”) for twelve Landscape Maintenance Districts (hereafter referred to as “LMD” or “LMDs”) designated as:
Bordoni Ranch LMD
Carriage Oaks LMD
Garthe Ranch LMD (Zone A and Zone B)
Glen Cove III LMD
Glen Cove III 2015 LMD
Hunter Ranch III LMD
Marine World/Fairgrounds Drive LMD
Marin View LMD
Northeast Quadrant LMD (Including Zone A)
Sandpiper Point LMD
South Vallejo Business Park LMD
Town and Country II through V LMD
In an effort to streamline the annual admin istrative process and expenses, the annual Reports required for each LMD, pursuant to the 1972 Act, are incorporated into this single Report. This comprehensive Report address the overall legislative authority, benefit rationale and method of apportionment for the LMDs listed above and provides separately a more detailed description of each LMD’s boundaries, improvements, proposed budget and assessmen ts for fiscal year 2023-2024 as required by Chapter 1, Article 4, beginning with Section 22565 of the 1972 Act.
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
Assessment Process
This Report was prepared to establish the budgets for the continued capital improvement and services expenditures that would be funded by the proposed 2023-2024 assessments, determine the benefits received from the lighting and landscaping maintenance and improvements by property within the LMDs and the method of assessment apportionment to lots and parcels within the LMDS. This Report and the proposed assessments have been made pursuant to the provisions of the 1972 Act and Article XIIID of the California Constitution (the “Article”).
In each subsequent year for which the asse ssments will be continued, the Council must direct the preparation of an Engineer's Report, budgets and proposed assessments for the upcoming fiscal year. After the Engineer's Report is completed, the Council may preliminarily approve the Engineer's Report and proposed assessments and establish the date for a public hearing on the continuati on of the assessments. This Report was prepared pursuant to the direction of the Council.
If the Council approves this Engineer's Report and the continuation of the assessments by resolution, a notice of assessment levies must be published in a local paper at least 10 days prior to the date of the public hearing. The resolution preliminarily approving the Engineer's Report and establishing the date for a public hearing is used for this notice.
Following the minimum 10-day time period after publishing the notice, a public hearing is held for the purpose of allowing public testimony about the proposed continuation of the assessments. This hearing is currently sc heduled for June 13, 2023. At this hearing, the Council would consider approval of a re solution confirming the continuation of the assessments for fiscal year 2023-2024. If so confirmed and approved, the assessments would be submitted to the County Auditor/Co ntroller for inclusion on the property tax rolls for Fiscal Year 2023-2024.
Engineer’s Report
SCI Consulting Group has been retained by the City as the Assessment Engineer for this Assessment since 2011-2012. Language taken fr om the previous Engi neer's Report is shown in Times New Roman, 10 pt. Font.
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
Assessment History
After the passage of Proposition 218 in November 1996 (now Articles XIIIC and XIIID of the California Constitution), the City conducted a complete analysis of the proposition and its application to the LMDs and the asse ssments related thereto. Pursuant to the Article XIIID Section 5 of the Constitution, certain existing assessments are exempt from the substantive and procedural requirements of Article XIIID Section 4 and property owner balloting for the assessments is not required until such time that the assessments are increased. Specifically, the City determined that the improvements and the annual assessment for each of the then existing 1972 Act Districts were part of the conditions of property development and approved by the original property owner (developer). As such, pursuant to Article XIIID Section 5b of the Constitution, the existing assessments were approved by all the property owners at the time the assessment was created (originally imposed pursuant to a 100% landowner petition) and therefore, the previously adopted assessments for each of those LM Ds were exempt from the procedural requirements of the Article XIIID Section 4.
With the exception of the Bordoni Ranc h LMD, Marine World/Fairgrounds LMD, Northeast Quadrant LMD, South Vallejo Busi ness Park LMD, the Highlands at Garthe Ranch LMD (Garthe Ranch LMD Zone B) and Glen Cove III 2015 LMD which were balloted for a new or increased assessment that includ ed an inflationary adjustment, each of the LMDs contained within this Report currently have fixed maximum assessment rates with no adjustment for inflation. Although th ese assessment rates (with the exception of Marin View LMD) were established prior to the passage of Proposition 218 and have been identified as exempt assessments pursuant to Article XIIID Section 5b of the Constitution, it has been determined that the current assessment revenues for most of these LMDs are no longer sufficient to cover the annual cost of providing the improvements.
Since the passage of Proposition 218, all new or increased assessments established for the LMDs and identified as the “Current Maximum Assessment Rate” in this Report have been submitted to the property owners of record and approved by such property owners pursuant to the provisions of the California Constitution Article XIIID Section 4.
Specifically:
The Marin View LMD was formed in fiscal year 1999-2000. As part of that formation process, the City conducted a property owner protest ballot proceeding for the proposed maximum assessment. The results of that balloting indicated that majority protest did not exist and the “Current Maximum Assessment Rate” identified in this Report for that LMD was approved and confirmed by the City Council. Although the maximum assessment for this LMD was approved through a property owner protest ballot proceeding, the maximum assessment established did not include an inflationary adjustment.
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
Also in fiscal year 1999-2000, the City conducted property owner protest proceedings for a proposed assessment increase for the Northeast Quadrant LMD. The assessment increase (new maximum assessment) presented to the property owners in a property owner protest ballot proceeding and subsequently approved by those property owners, included an annual inflationary adjustment for the assessments.
In fiscal year 2007-2008 the City conducted proceedings for the formation of the Highlands at Garthe Ranch Maintenance District and concurrently annexed the properties within this LMD to the existing Garthe Ranch LMD as Zone B. As part of the formation/annexation process the City co nducted a property owner protest ballot proceeding on the proposed new assessment for the associated improvements. The new maximum assessment presented to the property owners of record and subsequently approved also included an annual inflationary adjustment for the assessments.
In fiscal year 2008-2009 the City conducted property owner protest proceedings for a proposed assessment increase for eight of the LMDs outlined in this Report. These eight LMDs included:
Carriage Oaks LMD
Garthe Ranch LMD (Zone A only)
Glen Cove III LMD
Hunter Ranch III LMD
Marine World/Fairgrounds Drive LMD
Sandpiper Point LMD
South Vallejo Business Park LMD
Town and Country II through V LMD
In addition to the proposed assessment rate increases, the City proposed the implementation of an annual inflation adjustment for those new maximum assessment rates. In connection with the proposed assessment increases, pursuant to the provisions of the California Constitution, Article XIIID Section 4, the City conducted a property owner protest ballot proceeding for the establishment of the proposed new maximum assessments and inflationary adjustment for each respective LMD prior to imposing such new assessments.
The tabulation of the ballots indicated that majority protest did not exist for the proposed new or increased assessment for the following two LMDs only:
Marine World/Fairgrounds Drive LMD
South Vallejo Business Park LMD
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
In fiscal year 2010-2011, the City conducted a property owner ballot proceeding for a proposed new assessment for the Bordoni Ranch LMD. The new assessment presented to the property owners in a ballot proceeding and subsequently approved by those property owners included an annual inflationary adjustment for the assessments.
In fiscal year 2015-2016, the City conducted a property owner ballot proceeding for a proposed new assessment in the Glen Cove III area, Glen Cove III 2015 LMD (Glen Cove III District 2). The new assessment presented to the property owners in a ballot proceeding and subsequently approved by those property owners included an annual inflationary adjustment for the assessments.
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
Changes To The Landscap e Maintenance Districts
Changes within the LMDs that affect th e 2023-2024 levy of assessments are outlined below.
Annexations
No new annexations have occurred since the fiscal year 2022-2023 Engineer’s Report was approved.
New Landscape Maintenance Districts
No new LMDs have been formed since the fiscal year 2022-2023 Engineer’s Report was approved.
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
Plans & Specifications
The LMDs provide maintenance of landscaping and lighting within the public right-of-way, dedicated landscape easements, parks, detention basins, and street lighting (the “Improvements”) in the various LMDs throughout the City. Each LMD has differing costs and provides direct and special benefits to th e parcels within these LMDs. All properties will be assessed only for the maintenance of improvements within their respective LMD.
Improvements within the LMDs include but ar e not limited to: installation, maintenance and servicing of public facilities, and incide ntal expenses, including but not limited to, street lights, public lighting facilities, lands caping, sprinkler systems, statuary, fountains, other ornamental structures and facilities, landscape corridors, ground cover, shrubs and trees, street frontages, drainage systems, fencing, entry monuments, graffiti removal and repainting, and labor, materials, supplies, utilities and equipment, as applicable, for property owned or maintained by the City of Vallejo. Any plans and specifications for these improvements will be filed with the Public Works Director of the City of Vallejo and are incorporated herein by reference.
Installation means the construction of lighting and landscaping improvements, including, but not limited to: land preparation, such as grading, leveling, cutting and filling, sod, landscaping, irrigation systems, sidewalks and drainage and lights.
Maintenance means the furnishing of servic es and materials for the ordinary and usual maintenance, operation and servicing of any improvement, including repair, removal or replacement of all or any part of any improvement; providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; the removal of trimmings, rubbish, debris, and other solid waste, and the cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti.
Servicing means the furnishing of electric current or energy for the operation or lighting of any improvements, and water for irrigation of any landscaping or the maintenance of any other improvements.
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
Incidental expenses include all of the following: (a) The costs of preparation of the report, including plans, specifications, estimates, diagram, and assessment; (b) the costs of printing, advertising, and the giving of published, posted, and mailed notices; (c) compensation payable to the County for colle ction of assessments; (d) compensation of any engineer or attorney employed to rende r services in proceedings pursuant to this part; (e) any other expenses incidental to th e construction, installation, or maintenance and servicing of the Improvements; (f) any expenses incidental to the issuance of bonds or notes pursuant to Streets & Highways Co de Section 22662.5; and (g) costs associated with any elections held for the approval of a new or increased assessment. (Streets & Highways Code §22526).
The assessment proceeds will be exclusively used for Improvements within the LMDs plus Incidental expenses.
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
Description of the Landscape Maintenance Districts
Landscape Maintenance District Bounda ries, Specific Areas Maintained and Fiscal Year 2023-2024 Estimate of Cost and Budgets
A description of the boundaries, areas maintained, Improvements and FY 2023-24 Budgets are described in detail below for each LMD.
BORDONI RANCH LMD
This LMD is designated as Bordoni Ranch Landscape Maintenance District and may be referred to as Bordoni Ranch LMD. Bordon i Ranch LMD was formed in 2010. The LMD serves two Zones:
Zone 1 is comprised of all parcels of land within the Bordoni Ranch subdivision, as well as the two parcels on the west side of Columbus Parkway that are the proposed site of the planned detention basin/wetlands;
Zone 2 is comprised of the remaining three pa rcels of land on the west side of Columbus Parkway that are proposed to be future residential subdivisions, including the planned Tuscany subdivision.
Boundaries
Zone 1 consists of all lots, parcels and subdivisions of land within the proposed residential subdivision known as Bordoni Ranch, generally located east of and adjacent to Columbus Parkway and south of Regents Park Drive and Brunswick Drive. Zone 1 also includes the two parcels that are the site of the proposed detention basin as well as vacant wetlands.
These two parcels are generally located west of and adjacent to Columbus Parkway, and north of Benicia Road, and south of Greenmont Drive.
Zone 2 consists of all lots, parcels and subdivisions of land within the proposed residential subdivision known as Tuscany as well as vacant land and two parcels zoned for residential development (future single-family residential subdivisions). These properties are generally located west of and adjacent to Columbus Parkway; and north of Greenmont Drive, and south of Aragon Street.
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
Improvements
The LMD maintains landscape improvements, open space areas and park facilities. It has been determined that specific improvements to be maintained throughout the LMD are improvements that provide special benefits to each property within the LMD, the cost of which will be proportionately shared by properties in both Zone 1 and Zone 2 (“Shared Improvements”). Conversely, other improvements to be maintained throughout the LMD that are specifically the result of developing properties within the Bordoni Ranch residential subdivisions are improvements that provide special benefits to only those properties, and the cost of providing such improvements shall be proportionately shared by only the properties in Zone 1 (“Zone 1 Improvements”). Therefore, Zone 1 receives benefits from both the Zone 1 Improvements and the Shared Improvements while Zone 2 receives benefits only from the Shared Improvements. The Improvements to be maintained throughout the LMD are generally described as:
Zone 1 Improvements
Irrigated parkways and slopes (streetscape) within the public right-of-ways on the perimeter of the Bordoni Ranch subdivision, including but not limited to:
o Landscaped area located on the east side of Columbus Parkway, from Regents Park Drive southward to the southern end of the Bordoni Park subdivision;
o Landscaped area and approximately 19 street trees located on the south side of Regents Park Drive, from Columbus Parkway eastward to approximately 50 feet west of Brunswick Drive;
o Landscaped area, including approximately 54 street trees on both sides of Waterstone Parkway between Regents Park Drive and Abbey Drive.
Irrigated open space areas and wetlands dispersed throughout the Bordoni Ranch subdivision that provide a transition from the streetscape landscaped areas to the non-irrigated open space areas, and/or are located adjacent to the residential units or common areas within the Bordoni Ranch subdivision. Detention basin serving the Bordoni Ranch development.
Shared Improvements
Landscaped median islands on Columbus Parkway, approximately between Regents Park Drive on the north and Benicia Road on the south. Designated parkland, located at the corner of Columbus Parkway and Regents Park Drive. The park includes, but is not limited to:
o One basketball court;
o Two bocce courts;
o Toddler’s play structure;
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
o Older children’s play structure;
o Picnic areas with tables, barbeques, and benches;
o A 21-stall parking lot.
General Information
Prior to the Bordoni Ranch development, there was a 6.74 acre park located on the south side of Regents Park Drive just east of Columbus Parkway. This park had very few amenities and consisted primarily of grass, trees and sidewalks. The park was maintained by the Greater Vallejo Recreation District (the “GVRD”). In anticipa tion of the increased demand to be placed on the park by the Developments, the previous park was demolished and a new park was completely reconstructed and enhanced as described above. Fiscal Year 2023-2024 planning and redesign of the bathroom facilities are planned for completion.
LMD Budgets
The following provides the budget and maximum assessment rates for each Zone for fiscal year 2023-24.
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
Direct Costs Zone 01 Zone 02
2023-24
Budget
Contract Maintenance Costs $42,743 $961 $43,704
Salaries & Benefits $39,216 $882 $40,098
Services & Supplies $4,779 $107 $4,886
Landscape Water $42,936 $966 $43,902
Utilities $2,054 $46 $2,100
Landscape Rehabilitation / Vandalism $14,670 $330 $15,000 Capital Projects ($47,403) ($1,066) ($48,469)
Total Direct Costs $98,994 $2,227 $101,221
Administration Costs
Administration & Overhead $18,071 $407 $18,478
County Administration Fees $1,690 $38 $1,728
Professional Fees $956 $22 $978
Total Administration Costs $20,718 $466 $21,184
Collections / (Credits) Applied To Levy
Total Direct and Administration Costs $119,712 $2,693 $122,405 Contribution to / (from) Reserve Fund $0 $0 $0
Contribution to / (from) Rehabilitation Fund $52,615 $1,180 $53,795 Contribution (from) General Fund / Other Revenue ($3,341) ($75) ($3,416) Balance to Levy $168,986 $3,798 $172,784
District Statistics
Total Parcels 259 3 262
Total Parcels Levied 244 3 247
Total Equivalent Benefit Units 430.00 14.05 444.05
Proposed Levy per Benefit Unit $392.99 $270.33
Maximum Levy per Benefit Unit $731.54 $502.74
Total Assessment Levy $168,985.70 $3,798.14 $172,783.84 Fund Balance Information
Beginning Operating Reserve Fund Balance $59,855.97 $1,346.45 $61,202.42 Operating Reserve Fund Adjustments $0.00 $0.00 $0.00
Anticipated Operating Reserve Fund Balance $59,855.97 $1,346.45 $61,202.42 Beginning Rehabilitation Reserve Fund Balance $321,092.64 $7,222.94 $328,315.58 Rehabilitation Reserve Fund Adjustments $52,615.01 $1,179.99 $53,795.00 Anticipated Rehabilitation Reserve Fund Balance $373,707.65 $8,402.93 $382,110.58 Anticipated Total Ending Fund Balance $433,563.61 $9,749.39 $443,313.00 Estimate of Cost
City of Vallejo
Bordoni Ranch Landscape Maintenance District
Fund Number (#177)
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
Carriage Oaks LMD
This LMD is designated as Carriage Oaks Landscape Maintenance District and may be referred to as Carriage Oaks LMD. Carria ge Oaks LMD was formed in 1990. The LMD serves a residential neighborhood of 254 parcels located in northeast Vallejo.
Boundaries
The LMD lies within the City of Vallejo, gene rally located within the area bounded by Interstate 80, State Route 37, the Count ry Club Crest Ranch and Cimarron Hills Subdivisions.
Improvements
The LMD maintains landscaped areas and weed control zones including approximately 1 acre of ornamental and native landscaping which includes ground cover, shrubbery and trees; and 10 acres of plantings and weed control described as follows:
Remove & replace over-mature shrubs on Borges slopes
Thin out over-mature vegetation at Griffin & Sousa
The landscape areas from Cimarron Court to Souza
The strip of weed height control along the Marine World Parkway sound wall and the open space below, to the west of Highway 80
Weed height control for open space areas
Prune trees in LMD easements
Upgrade irrigation on slopes along Borges
General Information
Slope drainage from Highway 80 is highly erosive to the open space area and has significantly impacted the LMD costs over th e last few years. Although repairs due to erosion cannot be predicted, it is essent ial that the LMD’s Rehabilitation Fund be adequately funded for any unforeseen repairs or replacements.
The life expectancy of native shrubbery is five to fifteen years. The majority of the current landscape improvements (shrubbery) within the LMD will likely need replacement over the next several years.
A financial analysis of the LMD indicates that the current maximum assessment revenues do not generate adequate revenue to provide for the Improvements. The City conducted proceedings in fiscal year 2008-2009 to ballot the property owners within the LMD for an increased assessment and an annual inflationary adjustment commencing in fiscal year 2008-2009, which was not approved.
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
LMD Budget
The following provides the budget and maximum assessment rate for fiscal year 2023-24.
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
Direct Costs 2023-24 Budget
Contract Maintenance Costs $12,618
Salaries & Benefits $7,902
Services & Supplies $963
Landscape Water $2,716
Utilities $300
Landscape Rehabilitation / Vandalism $5,000
Capital Projects $0
Total Direct Costs $29,499
Administration Costs
Administration & Overhead $3,641
County Administration Fees $149
Professional Fees $84
Total Administration Costs $3,874
Collections / (Credits) Applied To Levy
Total Direct and Administration Costs $33,373
Contribution to / (from) Reserve Fund $0
Contribution to / (from) Rehabilitation Fund ($18,224)
Contribution (from) General Fund / Other Revenue ($285) Balance to Levy $14,864
District Statistics
Total Parcels 254
Total Parcels Levied 254
Total Equivalent Benefit Units 254.00
Proposed Levy per Benefit Unit $58.52
Maximum Levy per Benefit Unit $58.52
Total Assessment Levy $14,864.08
Fund Balance Information
Beginning Operating Reserve Fund Balance $20,120.00
Operating Reserve Fund Adjustments ($18,224.00)
Anticipated Operating Reserve Fund Balance $1,896.00
Beginning Rehabilitation Reserve Fund Balance $0.00
Rehabilitation Reserve Fund Adjustments $0.00
Anticipated Rehabilitation Reserve Fund Balance $0.00
Anticipated Total Ending Fund Balance $1,896.00
Estimate of Cost
City of Vallejo
Carriage Oaks Landscape Maintenance District
Fund Number 7720 (#170)
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
Garthe Ranch LMD
This LMD is designated as Garthe Ranch Landscape Maintenance District and may be referred to as Garthe Ranch LMD. The LMD is comprised of two Zones:
Zone A (the original Garthe Ranch LMD) was formed in 1987 and serves a residential neighborhood consisting of 1,145 parcels within thirteen developments located in southeast Vallejo; and
Zone B (the Highlands) was formed and established in October 2006 and serves a residential development consisting of 105 parcels situated in the eastern portion of the City of Vallejo.
Boundaries
Zone A of the LMD is generally located with in the areas bounded by Columbus Parkway, Lake Herman Road, the Vallejo-Benicia city limits line, the Springtree/Fleming Hill LMD, Tennessee Street, Saint Catherine's Church, and the Summit I and Somerset Highlands III Landscape Maintenance Districts.
Zone B is generally located east of and adja cent to Columbus Parkway at Spring Road, south and west of Ascot Parkway, and north of Georgia Street.
Improvements
Zone A - The LMD maintains landscaped areas, weed control zones and trail systems for the special benefit of properties within Zone A including approximately 30 acres of native and ornamental ground cover, shrubbery and trees; 31 acres of plantings and weed control that are found in the following areas:
The Ascot Parkway frontage which extends eastward to Newcastle Drive The Georgia Street frontage extending to Ascot Parkway Hilary Way between Columbus and Ascot Parkways
The Columbus Parkway slopes below the Coventry Hills subdivision and Highland Apartments
The frontages along Windsor, Westminster, Southport, and Ramsgate Ways The open space areas behind the residences of Ascot Parkway, Britannia Drive, Hawkins Street, Southport Way, Georgia Street, Knig hts Circle, Devonshire and Joel Courts, Devonshire Avenue, Manor Court, Newcastle Drive, Newcastle Court, Windsor and Westminster Ways, Sandhurst Drive, Sandhurst Court, and Saxony Court.
Zone B - The LMD maintains landscaped areas, weed control zones and parkland for the special benefit of properties within Zone B including:
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
Approximately one acre of irrigated parkways and slopes (streetscape) within the public right-of-ways along the interior streets of the Zone. Approximately half of an acre of irri gated open space areas that provide a transition from the streetscape landscaped areas to the non-irrigated open spaces areas, and/or are located adjacent to the residential units or common areas within the Highlands subdivision.
Approximately one and a half acres of irrigated parkways and slopes (streetscape) on the perimeter of the Zone.
Approximately 25 acres of non-irrigated (natural) open space area located in the eastern half of the Zone behind the residential subdivision.
A half-acre park site is located in the center of the residential subdivision.
General Information
The life expectancy of native shrubbery is five to fifteen years. Although portions of the assessments for Zone A have been spent on rehabilitation in recent years, it is reasonable to assume that additional monies will be necessary in future years for either more rehabilitation of the improvements (particularly irrigation systems) or increased maintenance costs associated with very mature plant material.
LMD Budgets
Zone A Budget
A financial analysis of the LMD and the improvements indicates that the current maximum assessment rate does not generate sufficient revenues to adequately provide for the improvements. The City conducted proceedings in fiscal year 2008-09 to ballot the property owners within the LMD for an incr eased assessment and an annual inflationary adjustment commencing in fiscal year 2008-09 which was not approved.
The following provides the budget and maximum assessment rate for fiscal year 2023-24.
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
Direct Costs 2023-24 Budget
Contract Maintenance Costs $95,172
Salaries & Benefits $60,469
Services & Supplies $7,368
Landscape Water $34,209
Utilities $3,520
Landscape Rehabilitation / Vandalism $25,000
Capital Projects $0
Total Direct Costs $225,738
Administration Costs
Administration & Overhead $27,865
County Administration Fees $1,783
Professional Fees $1,009
Total Administration Costs $30,657
Collections / (Credits) Applied To Levy
Total Direct and Administration Costs $256,395
Contribution to / (from) Reserve Fund $0
Contribution to / (from) Rehabilitation Fund ($75,511)
Contribution (from) General Fund / Other Revenue ($2,542) Balance to Levy $178,342
District Statistics
Total Parcels 1145
Total Parcels Levied 1138
Total Equivalent Benefit Units 1388.31
Proposed Levy per Benefit Unit $128.46
Maximum Levy per Benefit Unit $128.46
Total Assessment Levy $178,342.30
Fund Balance Information
Beginning Operating Reserve Fund Balance $121,466.00
Operating Reserve Fund Adjustments ($75,511.00)
Anticipated Operating Reserve Fund Balance $45,955.00
Beginning Rehabilitation Reserve Fund Balance $0.00
Rehabilitation Reserve Fund Adjustments $0.00
Anticipated Rehabilitation Reserve Fund Balance $0.00
Anticipated Total Ending Fund Balance $45,955.00
Estimate of Cost
City of Vallejo
Garthe Ranch Landscape Maintenance District
Fund Number 7716 (#180)
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
Zone B Budget
Zone B (Highlands) was formed and balloted for a new assessment in fiscal year 2006-07, which included an annual inflationary.
The following provides the proposed budget and assessment rate for fiscal year 2023-24 that is necessary to provide an appropriate level of maintenance for the Highlands (Zone B) of the LMD. The budget includes the City ’s estimate of anticipated expenditures, revenues and fund balances required for the annual maintenance and operation of the improvements. The assessment rate derived from this budget and the established method of apportionment shall be used to ca lculate each parcel’s assessments for fiscal year 2023-24.
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
Direct Costs 2023-24 Budget
Contract Maintenance Costs $25,338
Salaries & Benefits $35,846
Services & Supplies $4,368
Landscape Water $50,827
Utilities $2,440
Landscape Rehabilitation / Vandalism $15,000
Capital Projects $0
Total Direct Costs $133,819
Administration Costs
Administration & Overhead $16,519
County Administration Fees $2,179
Professional Fees $1,233
Total Administration Costs $19,931
Collections / (Credits) Applied To Levy
Total Direct and Administration Costs $153,750
Contribution to / (from) Reserve Fund $0
Contribution to / (from) Rehabilitation Fund $77,933
Contribution (from) General Fund / Other Revenue ($13,764) Balance to Levy $217,919
District Statistics
Total Parcels 105
Total Parcels Levied 105
Total Equivalent Benefit Units 105.00
Proposed Levy per Benefit Unit $2,075.42
Maximum Levy per Benefit Unit $2,705.31
Total Assessment Levy $217,919.10
Fund Balance Information
Beginning Operating Reserve Fund Balance $76,875.10
Operating Reserve Fund Adjustments $0.00
Anticipated Operating Reserve Fund Balance $76,875.10
Beginning Rehabilitation Reserve Fund Balance $1,671,326.90 Rehabilitation Reserve Fund Adjustments $77,933.00
Anticipated Rehabilitation Reserve Fund Balance $1,749,259.90 Anticipated Total Ending Fund Balance $1,826,135.00
Estimate of Cost
City of Vallejo
Garthe Ranch Highland (Zone B) Landscape Maintenance District Fund Number 7746 (#188)
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
Glen Cove III LMD’s
The Glen Cove III area has two Landscape Maintenance Districts, the first LMD is designated as Glen Cove III LMD or “LMD 1” , was formed in 1987. LMD 1 serves an area consisting of 2,936 parcels from twenty-eight (28) developments located in southeast Vallejo.
The second Landscape Maintenance District was formed by property owner ballot proceeding fiscal year 2015-16 an d is designated as Glen Cove III 2015 LMD or “LMD 2”.
LMD 2 serves the same area as LMD 1 and co ntains 3,219 parcels from twenty-eight (28) developments located in southeast Vallejo. LMD 2 contains slightly more parcels than LMD 1, due to its formation occurring after the implementation of Proposition 218, public agencies are subject to LMD 2 assessments.
LMD 2 was formed in order to provide additional funding for the maintenance and installation of landscape improvements throughout the Glen Cove III area. LMD 1 was formed in 1987 without an inflationary adjustment while costs have increased significantly. As a result, the assessment revenue from LMD 1 was no longer sufficient to fund annual maintenance and would have depleted the rehabilitation reserve fund.
The development of properties within both LMD’s is not expected to change significantly.
Boundaries
Both LMD’s lies within the City of Vallejo, generally located within the area bounded by Interstate 80, Interstate 780, Robles Way and the Benicia State Recreation Area.
LMD 2 Zones of Benefit
As part of the engineering work for the fo rmation of LMD 2, an analysis was conducted on the relationship (including proximity, transportation corridors, likely travel routes, etc.), between properties and the primary improvements located along Glen Cove Parkway. As a results three zones, A, B a nd C were created as shown on the assessment diagram for LMD 2. Parcels in Zone B are determined to receive 98% of the level of special benefit as those within Zone A and parcels in Zone C are determined to receive 94% of the level of special benefit as those within Zone A.
Improvements
The LMD’s maintain landscaped areas; weed control zones; and trail systems including approximately 60 acres of ornamental and native landscaping which includes ground cover, shrubbery, and trees; and 62 acres of plantings and weed control that are found in the following areas:
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
The boundaries of Robles to the straits and Navone/Palou/Old Glen Cove Road to the Benicia State Recreation Area fence-line and Glen Cove Parkway Mistral, Rivermouth, Brigantine, James River, New Bedford Court, Bear Cove Court, Pueblo Court, Duxbury Place, Sandy Neck Way, Sea Cliff Place, Saybrook Way, Antigua Way, and Chesapeake Drive
Glen Cove Parkway beginning at the west corner of the Marina Complex landscape area fronting the parkway to the intersection of Glen Cove Parkway and Bayside Terrace
The open space to the west and north of Waterview Terrace The slope of Clearview including the slope and trail along the strait to the entrance of the harbor
South Regatta from the intersection of Glen Cove Parkway to the intersection of Whiteside and South Regatta
The open space between Paddlewheel, Beston, Ancheta, Topsail, Yachtsman, and Seafarer
Weed control adjacent to the Benicia State Park fence-line and the PG&E yard to the intersection of Flying Dutchman
The open space above Weathermark, Leeward, and Windward Courts The open space slope of Flying Dutchm an, Pirates’ Cove, Sea Mist, Topsail, Helmsman, Anchor, Winter Harbor, Wellfleet, Cape Elizabeth, Fairhaven, and Silver Pine to the Benicia State Park fence
The Hwy. 780 fence-line along the northeast boundary of the LMD The access pathway behind Topsail and the landscaping along each side of North Regatta to the intersection of Glen Cove Parkway and North Regatta The north side of Sunfish Court
Outrigger near Sea Horse and the open space to the rear yard fences of Palou and Pueblo
The open space above Del Sur in the cul-de-sac, above Clearpointe, and the open space above and below the Clearpointe Drive cul-de-sac
General Information
The life expectancy of native shrubbery is five to fifteen years.
Fiscal Year 2023-24 community engagement and work with consultants on design of Glen Cove Parkway Project including next phases / scope of work / construction documents / budget / timelines.
Fiscal Year 2024-25 Glen Cove Parkway Project - bid project and start construction base on design plans created from Fiscal Year 2023-24 planning and design process.
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
The City conducted proceedings in fiscal year 2008-2009 to ballot the property owners within the LMD for an increased assessmen t and an annual inflationary adjustment commencing in fiscal year 2008-2009 which wa s not approved. The City conducted a second property owner ballot proceeding in fiscal year 2015-16 for a new assessment and an annual inflationary adjustment comme ncing in fiscal year 2015-16 which was approved. As noted previously the new LMD is designated as Glen Cove III 2015 LMD or “LMD 2”.
Including the annual inflationary adjustment maximum assessment rates for LMD 2 for fiscal year 2023-24 are $131.25 for properties in Zone A, $128.65 for properties in Zone B, and $123.37 for properties in Zone C.
LMD Budget
The following provides the budget and maximum assessment rate for fiscal year 2023-24.
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
Direct Costs
2023-24
Glen Cove III
LMD 1
2023-24
Glen Cove III
LMD 2 (2015)
2023-24
Glen Cove III
Total Budget
Contract Maintenance Costs $176,318 $130,643 $306,961
Salaries & Benefits $95,635 $70,831 $166,466
Services & Supplies $11,653 $8,631 $20,284
Landscape Water $52,410 $38,818 $91,228
Utilities $3,734 $2,766 $6,500
Landscape Rehabilitation / Vandalism $17,235 $12,765 $30,000 Capital Projects $43,088 $31,913 $75,000
Total Direct Costs $400,073 $296,366 $696,439
Administration Costs
Administration & Overhead $44,070 $32,641 $76,711
County Administration Fees $4,626 $3,427 $8,053
Professional Fees $2,609 $1,933 $4,542
Total Administration Costs $51,306 $38,000 $89,306
Collections / (Credits) Applied To Levy
Total Direct and Administration Costs $451,379 $334,366 $785,745 Contribution to / (from) Reserve Fund $0 $0 $0
Contribution to / (from) Rehabilitation Fund $17,174 $12,719 $29,893 Contribution (from) General Fund / Other Revenue ($5,950) ($4,406) ($10,356) Balance to Levy $462,603 $342,679 $805,282
District Statistics
Total Parcels 2936 3219
Total Parcels Levied 2936 3075
Total Equivalent Benefit Units Zone A 2981.84 2157.96
Total Equivalent Benefit Units Zone B 271.25
Total Equivalent Benefit Units Zone C 199.00
Proposed Levy per Benefit Unit Zone A $155.14 $131.25
Proposed Levy per Benefit Unit Zone B $128.65
Proposed Levy per Benefit Unit Zone C $123.37
Total Assessment Levy $462,602.66 $342,679.19 $805,281.85 Fund Balance Information
Beginning Operating Reserve Fund Balance $225,689.33 $167,183.08 $392,872.41 Operating Reserve Fund Adjustments $0.00 $0.00 $0.00
Anticipated Operating Reserve Fund Balance $225,689.33 $167,183.08 $392,872.41 Beginning Rehabilitation Reserve Fund Balance $615,720.14 $456,029.45 $1,071,749.59 Rehabilitation Reserve Fund Adjustments $17,173.53 $12,719.47 $29,893.00 Anticipated Rehabilitation Reserve Fund Balance $632,893.67 $468,748.92 $1,101,642.59 Anticipated Total Ending Fund Balance $858,583.00 $635,932.00 $1,494,515.00 City of Vallejo
Glen Cove III Landscape Maintenance Districts
Fund Number 7717 & 7748 (#185)
Estimate of Cost
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
Hunter Ranch III LMD
This LMD is designated as Hunter Ranch III Landscape Maintenance District and may be referred to as Hunter Ranch III LMD.
Hunter Ranch III LMD was formed in 1986
The LMD serves a residential neighborhood of 190 parcels located in northeast Vallejo and the development of properties within the LMD is not expected to change significantly.
Boundaries
The LMD lies within the City of Vallejo, gene rally located within the area bounded by Turner, Ascot and Redwood Parkways and the Hunter Ranch I subdivision.
Improvements
The LMD maintains landscaped areas totaling approximately 6 acres of ornamental and native landscaping which includes ground cover, shrubbery, trees, and weed control zones that are found in the following areas:
The west side of lower Ascot Parkway beginning at the south end of the sound wall at Sterling and Ascot Parkways to the intersection of Redwood Parkway and Ascot Parkway
The slope landscaping along the north side of Redwood Parkway extending to the Trotter intersection, including three median islands on Redwood Parkway
General Information
A FY 2008-2009 owner balloting to increase the assessment in the LMD to enable a full level of service failed and as a result the City reduced the Direct Costs of the LMD by re- negotiating the landscape maintenance contracts (reduced level of service) and less frequent water use in an attempt to bring the annual expenses in line with the assessment revenues.
A financial analysis of the LMD and the improvements indicates that the current maximum assessment rate does not generate sufficient revenues to adequately provide for the improvements.
LMD Budget
The following provides the budget and maximum assessment rate for fiscal year 2023-24.
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
Direct Costs 2023-24 Budget
Contract Maintenance Costs $3,090
Salaries & Benefits $3,098
Services & Supplies $378
Landscape Water $0
Utilities $0
Landscape Rehabilitation / Vandalism $5,000
Capital Projects $0
Total Direct Costs $11,566
Administration Costs
Administration & Overhead $1,428
County Administration Fees $137
Professional Fees $77
Total Administration Costs $1,642
Collections / (Credits) Applied To Levy
Total Direct and Administration Costs $13,208
Contribution to / (from) Reserve Fund $0
Contribution to / (from) Rehabilitation Fund $1,036
Contribution (from) General Fund / Other Revenue ($556) Balance to Levy $13,688
District Statistics
Total Parcels 190
Total Parcels Levied 190
Total Equivalent Benefit Units 190.00
Proposed Levy per Benefit Unit $72.04
Maximum Levy per Benefit Unit $72.04
Total Assessment Levy $13,687.60
Fund Balance Information
Beginning Operating Reserve Fund Balance $6,603.94
Operating Reserve Fund Adjustments $0.00
Anticipated Operating Reserve Fund Balance $6,603.94
Beginning Rehabilitation Reserve Fund Balance $54,756.06 Rehabilitation Reserve Fund Adjustments $1,036.00
Anticipated Rehabilitation Reserve Fund Balance $55,792.06 Anticipated Total Ending Fund Balance $62,396.00
Estimate of Cost
City of Vallejo
Hunter Ranch III Landscape Maintenance District
Fund Number 7714 (#183)
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
Marine World/Fairgrounds Drive LMD
This LMD is designated as Marine Worl d/Fairgrounds Drive Landscape Maintenance District and may be referred to as Marine World/Fairgrounds Drive LMD or Marine World/Fairground LMD.
Marine World/Fairgrounds Drive LMD was formed in 1989. The LMD serves 5 parcels that include a recreational theme park, fairgrounds, and motel/hotel complex (Holiday Inn) lo cated in northeast Vallejo. Marine World/Fairgrounds Drive LMD is fully developed and the Equivalent Benefit Units (EBU) for the LMD is not expected to change.
Boundaries
The LMD lies within the City of Vallejo, gene rally located within the area bounded by Interstate 80, Fairgrounds Drive, and the western boundary of Marine World and the southern boundary of Solano County.
Improvements
The LMD maintains the landscaped frontages and median plantings totaling approximately 3 acres of native and ornamental ground cover, shrubbery and trees; and
0.5 acre of weed control and new plantings. Fairgrounds Drive serves as the entrance to the Discovery Kingdom (Formerly Marine World) Six Flags Theme Park and Solano County Fairgrounds and the LMD improvements are generally located in the areas described below:
Just beyond the entrance to the Fairgrounds parking lot to the south; and North beyond the overpass of Highway 37
General Information
The life expectancy of native shrubbery is five to fifteen years.
A past financial analysis of the LMD and th e improvements indicated that the maximum assessment rate did not generate sufficient revenues to adequately provide for the improvements. The City conducted proceedin gs in FY 2008-2009 to ballot the property owners within the LMD for an increase d assessment and an annual inflationary adjustment commencing in fiscal year 2008-2009 which was approved.
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
LMD Budget
A financial analysis of the LMD with the inflationary adjustments indicates that the maximum assessment rate does generate sufficient revenues to adequately provide for improvements. The budget includes the City’s estimate of anticipated expenditures, revenues and fund balances required for the annual maintenance and operation of the improvements. The assessment rate derived from this budget and the established method of apportionment shall be used to ca lculate each parcel’s assessments for fiscal year 2023-24.
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
Direct Costs 2023-24 Budget
Contract Maintenance Costs $22,308
Salaries & Benefits $23,211
Services & Supplies $2,828
Landscape Water $16,942
Utilities $1,360
Landscape Rehabilitation / Vandalism $20,000
Capital Projects $0
Total Direct Costs $86,649
Administration Costs
Administration & Overhead $10,696
County Administration Fees $1,060
Professional Fees $599
Total Administration Costs $12,355
Collections / (Credits) Applied To Levy
Total Direct and Administration Costs $99,004
Contribution to / (from) Reserve Fund $0
Contribution to / (from) Rehabilitation Fund $11,110
Contribution (from) General Fund / Other Revenue ($4,162) Balance to Levy $105,952
District Statistics
Total Parcels 4
Total Parcels Levied 4
Total Equivalent Benefit Units 845.85
Proposed Levy per Benefit Unit $125.26
Maximum Levy per Benefit Unit $160.86
Total Assessment Levy $105,951.17
Fund Balance Information
Beginning Operating Reserve Fund Balance $49,501.76
Operating Reserve Fund Adjustments $0.00
Anticipated Operating Reserve Fund Balance $49,501.76
Beginning Rehabilitation Reserve Fund Balance $440,909.24 Rehabilitation Reserve Fund Adjustments $11,110.00
Anticipated Rehabilitation Reserve Fund Balance $452,019.24 Anticipated Total Ending Fund Balance $501,521.00
City of Vallejo
Marine World / Fairgrounds Landscape Maintenance District Fund Number 7722 (#186)
Estimate of Cost
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
Marin View LMD
T h i s L M D i s d e s i g n a t e d a s M a r i n V i e w L andscape Maintenance District and may be referred to as Marin View LMD.
Marin View LMD was formed July 13, 1999.
The LMD serves a residential neighborhood of 10 parcels located in north Vallejo and is fully developed.
Boundaries
The LMD lies within the City of Vallejo, generally located at the northern end of Pecan Court and bounded by Hickory and Pecan Streets.
Improvements
The LMD maintains landscaped areas and weed control zones found in the following areas:
The ornamental and native landscaping within the median island at the end of Pecan Court including ground cover, shrubbery, and trees Weed control in open space areas in the northwest corner and in the western portion of the LMD that assists in fire protection.
General Information
The property owners within the LMD approved the current assessment rate in Fiscal Year 1999-2000, but the assessment did not include an inflationary adjustment.
Although previous financial analysis of the LMD suggested that assessment revenues may not be adequate to fund the improvements, this funding issue resulted largely from one- time rehabilitation expense and district formation expense that were required due to the lack of maintenance in the area previously, which has generally been resolved over time.
A financial analysis of the LMD in fiscal year 2008-2009 indicated that the assessment revenues were sufficient to fund the maintenance of the improvements and did not require an assessment increase at that ti me. However, the revenues generated at the maximum assessment rate, limited possible funding for future rehabilitation or unforeseen expenses and without an annua l inflationary adjustment, an assessment increase may be required in the near future.
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
LMD Budget
The following provides the proposed budget and assessment rate for fiscal year 2023-24 that is necessary to provide an appropriate level of maintenance for the LMD. The budget includes the City’s estimate of anticipated expenditures, revenues and fund balances required for the annual maintenance and operation of the improvements. The assessment rate derived from this budget and the established method of apportionment shall be used to calculate each parcel’s assessments for fiscal year 2023-24. The assessment rate derived from this budget is less than or equal to the previously approved maximum assessment rate for the LMD.
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
Direct Costs 2023-24 Budget
Contract Maintenance Costs $6,191
Salaries & Benefits $3,520
Services & Supplies $429
Landscape Water $0
Utilities $0
Landscape Rehabilitation / Vandalism $3,000
Capital Projects $0
Total Direct Costs $13,140
Administration Costs
Administration & Overhead $1,622
County Administration Fees $64
Professional Fees $36
Total Administration Costs $1,722
Collections / (Credits) Applied To Levy
Total Direct and Administration Costs $14,862
Contribution to / (from) Reserve Fund $0
Contribution to / (from) Rehabilitation Fund ($8,095)
Contribution (from) General Fund / Other Revenue ($407) Balance to Levy $6,360
District Statistics
Total Parcels 10
Total Parcels Levied 10
Total Equivalent Benefit Units 10.00
Proposed Levy per Benefit Unit $636.00
Maximum Levy per Benefit Unit $636.00
Total Assessment Levy $6,360.00
Fund Balance Information
Beginning Operating Reserve Fund Balance $7,430.80
Operating Reserve Fund Adjustments $0.00
Anticipated Operating Reserve Fund Balance $7,430.80
Beginning Rehabilitation Reserve Fund Balance $37,597.20 Rehabilitation Reserve Fund Adjustments ($8,095.00)
Anticipated Rehabilitation Reserve Fund Balance $29,502.20 Anticipated Total Ending Fund Balance $36,933.00
City of Vallejo
Marin View Landscape Maintenance District
Estimate of Cost
Fund Number 7715 (#187)
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
Northeast Quadrant LMD
This LMD is designated as Northeast Quadra nt Landscape Maintenance District and may be referred to as Northeast Quadrant LMD.
Northeast Quadrant LMD was formed in 1984.
The LMD currently serves approximatel y 1,867 parcels that include business, residential, and school land uses located in northeast Vallejo. The LMD is not fully developed and is currently comprised of 1,848 parcels that include business, residential, and school land uses located in northeast Vallejo. The LMD includes 159 parcels (140 assessable parcels) that are identified as Zone A. In addition to the overall improvements provided within the LMD, these parcels receive special benefits from additional local landscape improvements for which they are assessed.
Boundaries
The LMD is located within the area genera lly bounded by Highwa y 80, Hunter Ranch II and Hunter Ranch III subdivisions, Sulphur Sp rings Mountain, Blue Rock Springs Golf Course, Summit Landscaping District and W oodridge Landscape Maintenance District.
Within this LMD, parcels adjacent to Admir al Callaghan Lane and Columbus Parkway to the north, Plaza Drive to the west, parcels adjacent to Turner Parkway to the south and parcels adjacent to Ascot Parkway to the east are identified and designated as Zone A.
Improvements
Situated in the Blue Rock area of the City, the LMD is diverse with landscaped parkways, medians and large open spaces. The overa ll LMD maintains landscaped areas, weed control zones and trail systems that includ e approximately 23 acres of native and ornamental ground cover, shrubbery and trees; and 9 acres of weed control and plantings that are described below:
The median of Admiral Callaghan Lane from Columbus Parkway to Turner Parkway
Remove & replace irrigation & landscaping in median on Ascot between Redwood & Hawkesbury
Hydro seed bare fire break areas for grass stands
Remove & replace irrigation & plants on 4 corner medians at Redwood & Ascot The median islands at the Columbus Parkway and Admiral Callaghan Lane intersection
Fill in median shrubs along Ascot between Turner & Redwood Parkway The median and landscaped areas on the south side of Turner Parkway City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
Replace landscaping along Turner Park way between Admiral Callaghan Way & Ascot
The median on Ascot Parkway from Redw ood Parkway to the other side of the bridge just before Hawksbury
Remove & replace irrigation & plants on Lake Herman Rd between Columbus to end
Maintain wrought iron fences located on public property or easements on Picasso, Topley, Rodin & Glenview Circle
North side of West bound lane on Columbus Pkwy from Blue Rock Springs Park to St. John's Mine Rd. Irrigate & landscape
The slope over the creek and the slope below Torrey Pine Court The slope below Picasso, Topley, Archer and Rodin Courts The slope landscaping to the north behind Glenview Circle and above Redwood Parkway
The slope surrounding Matthew Court
Ascot Parkway beyond the Blue Rock Springs Golf Course/Greater Vallejo Recreation District Park
Solano Bike Trail along the west boundary of the urban open space Zone A’s improvements are extra landscape maintenance related to tree care, additional litter pickup, and related utilities; and maintenance of entry monument and kiosk signs.
General Information
In fiscal Year 1999-2000, to ensure a high le vel of service for the LMD, the property owners through protest ballot proceeding approved an assessment increase and annual inflationary adjustment.
In fiscal year 2004-2005, formation of benefit Zone A was approved by property owners through a ballot proceeding. This ballot proceeding approved an assessment increase and annual inflationary adjustment applicable to those properties only.
It has been determined that the current maximum assessment rates for the LMD are sufficient to fund the annual maintenance of the LMD improvements. Based on the budget for fiscal year 2023-24 the proposed assessments are less than the authorized maximum assessment rates. Future capita l projects planned for Fiscal Year 2023-24 include design of landscape and irrigation improvements in the west bound lane of Columbus Parkway from Blue Rock Springs Park to Interstate 80 Freeway on-ramp. Fiscal Year 2023-24 design engineering repair of retaining wall along Ascot Parkway between Garnett Drive and Turner Parkway.
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
LMD Budget
The following provides the proposed budgets and assessment rates for fiscal year 2023- 24 that are necessary to provide an appropri ate level of maintenance for the LMD. The budgets include the City ’s estimate of anticipated expenditures, revenues and fund balances required for the annual maintenance and operation of the improvements. The assessment rate derived from these budgets and the established method of apportionment shall be used to calculate ea ch parcel’s assessments for fiscal year 2023-
24. The assessment rates derived from these budgets are less than or equal to the previously approved maximum assessment ra te for both Zone A and the Non-Zone A parcels in the LMD.
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
Direct Costs
2023-24
Zone A
2023-24
Non-Zone A
2023-24
Budget Total
Contract Maintenance Costs $38,866 $170,539 $209,405
Salaries & Benefits $17,896 $144,792 $162,688
Services & Supplies $2,181 $17,643 $19,824
Landscape Water $33,542 $147,178 $180,719
Utilities $872 $3,828 $4,700
Public Signs (Zone A) $0 $0 $0
Landscape Rehabilitation / Vandalism $5,568 $24,432 $30,000 Capital Projects $0 $0 $0
Total Direct Costs $98,924 $508,412 $607,336
Administration Costs
Administration & Overhead $8,247 $66,724 $74,971
County Administration Fees $1,595 $7,033 $8,628
Professional Fees $906 $3,974 $4,880
Total Administration Costs $10,748 $77,731 $88,479
Collections / (Credits) Applied To Levy
Total Direct and Administration Costs $109,672 $586,143 $695,815 Contribution to / (from) Reserve Fund $0 $0 $0
Contribution to / (from) Rehabilitation Fund $37,262 $166,797 $204,059 Contribution (from) General Fund / Other Revenue ($6,882) ($30,197) ($37,079) Balance to Levy $140,052 $722,743 $862,795
District Statistics
Total Parcels 336 2165 2501
Total Parcels Levied 291 2043 2334
Total Equivalent Benefit Units 359.12 2448.37 2807.50
Proposed Levy per Benefit Unit $444.20 $287.24
Maximum Levy per Benefit Unit $570.46 $368.88
Total Assessment Levy $159,522.88 $703,270.95 $862,793.83 Fund Balance Information
Beginning Operating Reserve Fund Balance $54,836 $293,071 $347,908 Operating Reserve Fund Adjustments $0 $0 $0
Anticipated Operating Reserve Fund Balance $54,836 $293,071 $347,908 Beginning Rehabilitation Reserve Fund Balance $673,148 $2,947,873 $3,621,020 Rehabilitation Reserve Fund Adjustments $37,262 $166,797 $204,059 Anticipated Rehabilitation Reserve Fund Balance $710,409 $3,114,670 $3,825,079 Anticipated Total Ending Fund Balance $765,246 $3,407,741 $4,172,987 Estimate of Cost
City of Vallejo
Northeast Quadrant Landscape Maintenance District
Fund Number 7711 (#178)
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
Sandpiper Point LMD
This LMD is designated as Sandpiper Point Landscape Maintenance District and may be referred to as Sandpiper Point LMD.
Sandpiper Point LMD was formed in 1981
The LMD serves a residential neighborhood of 385 parcels located in northwest Vallejo and is fully developed.
Boundaries
The LMD is generally located within the area bounded by Meadows Drive, Catalina Way and the Napa County line.
Improvements
The LMD maintains landscaped areas and weed control zones including approximately 4.5 acres of native and ornamental ground cover, shrubbery and trees; and 2.3 acres of weed controlled open space that are found in the following areas:
The landscaped strips and medians found within the boundaries of Meadows Drive wetlands on the west, Mini Drive median landscapes on the east and the Catalina Circle Wetlands on the northwest
Along Meadows Drive, Catalina Circle and Catalina Way The median islands of Mini Drive
General Information
In fiscal year 1999-2000 the landscape improvement areas to be maintained for this LMD were expanded, resulting in a significant increase to the LMD’s overall maintenance costs.
Although these new areas of maintenance had a significant negative impact on the financial health of the LMD, initially the a dditional expenses were offset by use of available reserve funds. Although the LMD still has some reserve funds available to offset these costs, they are no longer sufficient to cover the full annual expenditures for the LMD.
Therefore, it was determined that the maximum assessment rate did not generate sufficient revenues to adequately provide for the improvements. The City conducted proceedings in FY2008-2009 to ballot the prop erty owners within the LMD for an increased assessment and an annual inflationary adjustment commencing in fiscal year 2008-2009 which was not approved.
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
LMD Budget
The following provides the budget and maximum assessment rate for fiscal year 2023-24.
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
Direct Costs 2023-24 Budget
Contract Maintenance Costs $18,303
Salaries & Benefits $13,364
Services & Supplies $1,628
Landscape Water $11,295
Utilities $300
Landscape Rehabilitation / Vandalism $5,000
Capital Projects $0
Total Direct Costs $49,890
Administration Costs
Administration & Overhead $6,159
County Administration Fees $540
Professional Fees $305
Total Administration Costs $7,004
Collections / (Credits) Applied To Levy
Total Direct and Administration Costs $56,894
Contribution to / (from) Reserve Fund $0
Contribution to / (from) Rehabilitation Fund ($1,837)
Contribution (from) General Fund / Other Revenue ($1,047) Balance to Levy $54,010
District Statistics
Total Parcels 381
Total Parcels Levied 381
Total Equivalent Benefit Units 381.00
Proposed Levy per Benefit Unit $141.76
Maximum Levy per Benefit Unit $141.76
Total Assessment Levy $54,010.56
Fund Balance Information
Beginning Operating Reserve Fund Balance $28,447.05
Operating Reserve Fund Adjustments $0.00
Anticipated Operating Reserve Fund Balance $28,447.05
Beginning Rehabilitation Reserve Fund Balance $107,509.95 Rehabilitation Reserve Fund Adjustments ($1,837.00)
Anticipated Rehabilitation Reserve Fund Balance $105,672.95 Anticipated Total Ending Fund Balance $134,120.00
Estimate of Cost
City of Vallejo
Sandpiper Point Landscape Maintenance District
Fund Number 7713 (#163)
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
South Vallejo Business Park LMD
This LMD is designated as South Vallejo Business Park Landscape Maintenance District and may be referred to as South Vallejo Business Park LMD. South Vallejo Business Park LMD was formed in 1981
The LMD is a light industry park that serves nine light industry parcels located in southwest Vallejo with eight of the nine parcels being fully developed Boundaries
The LMD is generally located within the area bounded by Solano Avenue, Fifth Street Avenue, Sonoma Boulevard, and the railroad tracks in the area.
Improvements
The LMD maintains parkway landscape areas adjacent to the properties within the LMD totaling approximately 2 acres of grass area with trees; and 0.5 acre of ornamental ground cover and shrubbery with trees.
General Information
In recent years, property owners within th e LMD contacted the City regarding ways to reduce maintenance costs including reductions in irrigation. The City agreed to assist with this reduction by providing for water conservation practices in the maintenance contract.
However, it has been determined that further reductions could only be achieved by:
Eliminating the grassy mounding areas and/or removing trees from the turf planting areas and restricted them to stand-alone landscape plots; or Removing the landscaped areas from Co rporate Place to Sonoma Boulevard at the time the empty lot along Sonoma Boulevard is developed.
A financial analysis of did not generate the LMD and the improvements indicated that the maximum assessment rate sufficient revenues to adequately provide for the improvements. The City conducted proceedin gs in FY 2008-2009 to ballot the property owners within the LMD for an increase d assessment and an annual inflationary adjustment commencing in fiscal year 2008-2009 which was approved.
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
LMD Budget
The following provides the proposed budget and increased maximum assessment rate for fiscal year 2023-24 that is necessary to provid e an appropriate level of maintenance for the LMD. The budget includes the City’s estimate of anticipated expenditures, revenues and fund balances required for the a nnual maintenance and operation of the improvements. The assessment rate derived from this budget and the established method of apportionment shall be used to ca lculate each parcel’s assessments for fiscal year 2023-24.
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
Maintenance Costs 2023-24 Budget
Contract Maintenance Costs $12,484
Salaries & Benefits $21,394
Services & Supplies $2,607
Landscape Water $35,179
Utilities $1,204
Landscape Rehabilitation / Vandalism $7,000
Capital Projects $0
Total Direct Costs $79,868
Administration Costs
Administration & Overhead $9,859
County Administration Fees $1,230
Professional Fees $696
Total Administration Costs $11,785
Collections / (Credits) Applied To Levy
Total Direct and Administration Costs $91,653
Contribution to / (from) Reserve Fund $0
Contribution to / (from) Rehabilitation Fund $35,674
Contribution (from) General Fund / Other Revenue ($4,297) Balance to Levy $123,030
District Statistics
Total Parcels 9
Total Parcels Levied 9
Total Equivalent Benefit Units 37.43
Proposed Levy per Benefit Unit $3,286.60
Maximum Levy per Benefit Unit $4,347.51
Total Assessment Levy $123,030.58
Fund Balance Information
Beginning Operating Reserve Fund Balance $45,826.65
Operating Reserve Fund Adjustments $0.00
Anticipated Operating Reserve Fund Balance $45,826.65
Beginning Rehabilitation Reserve Fund Balance $573,586.35 Rehabilitation Reserve Fund Adjustments $35,674.00
Anticipated Rehabilitation Reserve Fund Balance $609,260.35 Anticipated Total Ending Fund Balance $655,087.00
Estimate of Cost
City of Vallejo
South Vallejo Business Park Landscape Maintenance District Fund Number 7710 (#162)
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
Town and Country II through V LMD
This LMD is designated as Town & Country II-V Landscape Maintenance District and may be referred to as Town & Country II-V LMD.
Town & Country II-V LMD was formed in 1986
The LMD serves a residential neighborhood of 336 parcels located in northeast Vallejo and is fully developed with no expected change in Equivalent Benefit Units (EBU)
Boundaries
The LMD is generally located within the area bounded by State Highway 37, Whitney Avenue, Serpentine Drive and Opal Drive.
Improvements
The LMD maintains landscaped areas and weed control zones that include approximately 3 acres of native and ornamental ground cover, shrubbery and trees on the various slopes within the LMD including:
The slopes between the residences of Whitney Avenue and Basalt Drive The slope behind residences of College Avenue and Olympic Drive including the access area from Quartz Drive
General Information
A financial analysis of the LMD and the improvements indicates that the current maximum assessment rate does not generate sufficient revenues to adequately provide for the improvements. The City conducted a proceeding in FY2008-2009 to ballot the property owners within the LMD for an incr eased assessment and an annual inflationary adjustment commencing in fiscal year 2008-2009 which was not approved.
LMD Budget
The following provides the budget and max imum assessment rate for fiscal year 2023- 2024.
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024
Direct Costs 2023-24 Budget
Contract Maintenance Costs $7,416
Salaries & Benefits $3,989
Services & Supplies $486
Landscape Water $0
Utilities $0
Landscape Rehabilitation / Vandalism $3,000
Capital Projects $0
Total Direct Costs $14,891
Administration Costs
Administration & Overhead $1,838
County Administration Fees $233
Professional Fees $132
Total Administration Costs $2,203
Collections / (Credits) Applied To Levy
Total Direct and Administration Costs $17,094
Contribution to / (from) Reserve Fund $0
Contribution to / (from) Rehabilitation Fund $7,338
Contribution (from) General Fund / Other Revenue ($1,103) Balance to Levy $23,329
District Statistics
Total Parcels 336
Total Parcels Levied 331
Total Equivalent Benefit Units 331.00
Proposed Levy per Benefit Unit $70.48
Maximum Levy per Benefit Unit $70.48
Total Assessment Levy $23,328.88
Fund Balance Information
Beginning Operating Reserve Fund Balance $8,547.14
Operating Reserve Fund Adjustments $0.00
Anticipated Operating Reserve Fund Balance $8,547.14
Beginning Rehabilitation Reserve Fund Balance $143,093.86 Rehabilitation Reserve Fund Adjustments $7,338.00
Anticipated Rehabilitation Reserve Fund Balance $150,431.86 Anticipated Total Ending Fund Balance $158,979.00
Estimate of Cost
City of Vallejo
Town and Country II-V Landscape Maintenance District
Fund Number 7712 (#184)
City of Vallejo
Landscape Maintenance Districts
Engineer’s Report, FY 2023-2024