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Home My WebLink AboutCC AG PKT 2003-02-24 #I • \ AGENDA REPORT ,® o 1 .„P 4 DATE: February 24, 2003 I TO: Honorable Mayor and City Council THRU: John B. Bahorski, City Manager FROM: Douglas A. Dancs, P.E., Director of Public Works /City Engineer SUBJECT: CITY OF . SEAL BEACH COMMUNITY FACILITIES DISTRICT (CFD) NO. 2002-02 (SEAL BEACH BOULEVARD /LAMPSON AVENUE LANDSCAPE MAINTENANCE) SUMMARY OF REQUEST: On January 13, 2003, the City Council adopted Resolution No. 5098, which set forth the City's intention to establish the City of Seal Beach Community Facilities District (CFD) No. 2002 -02 (Seal Beach Boulevard/Lampson Avenue Landscape Maintenance) pursuant to the Mello -Roos Community Facilities Act of 1982 to provide financing for the City's maintenance of landscaping facilities installed within the public right -of -way as part of the Bixby Old Ranch Town Center and Country Club developments. The subject landscaping facilities were installed by the Bixby Ranch Co. in the center median and the easterly parkway on Seal Beach Blvd. from Old Ranch Parkway to Plymouth Dr./Rossmoor Center Way, and in the center median, and southerly parkway on Lampson Ave. from Seal Beach Blvd. to approximately 1600 feet easterly, and in the City owned property along the northerly side of the I -405 north bound off ramp at Seal Beach Blvd. The City Council has previously found that the public interest would not be served by allowing property owners within the proposed CFD No. 2002 -02 to perform work proposed. _ However, at, present the Bixby Ranch Company has been maintaining all of the landscaping since its installation and has provided the needed funds for this advanced maintenance work in order to allow the City time to create and establish the proposed CFD No. 2002 -02. The Bixby Ranch Company has requested appropriate reimbursement for the costs of their advanced work. To accommodate reimbursement for such advance funding or work the proposed CFD No. 2002 -02 provides for the acceptance of advances of funds or work from any source for the payment of any costs incurred by the City in creating the CFD, and allows for the reimbursement of such advanced funds. The City Manager has filed the attached Community Facility District Report with the City Council for the proposed CFD No. 2002 -02 pursuant to Resolution No. 5098, which details • Agenda Item the services and the estimated cost to finance the services of the proposed CFD No. 2002 -02 and which also includes a boundary map of the affected properties. A Public Hearing has been scheduled before the City Council for February 24, 2003 to hear public comments concerning the establishment, extent, and the rate and method used to calculate the proposed special tax assessment of the proposed CFD No. 2002 -02. The City Clerk has published the Notice of Public Hearing and has mailed a copy of the Notice of Public Hearing to each registered voter and landowner within the proposed CFD No. 2002 -02 to notify the public of the time and date of the Public Hearing. ' Upon closing the public hearing the City Council should consider the information in the • Community Facilities District Report, public comment received, and the need to establish the proposed CFD No. 2002 -02 and to hold an election within the CFD No. 2002 -02 to authorize the levy of a special tax assessment to finance the City's maintenance of landscaping facilities pursuant to the proposed CFD No. 2002 -02. After consideration the City Council may adopt and establish the City of Seal Beach Community Facilities District (CFD) No. 2002 -02 as presented, or with modifications, and also provide for the special election pursuant to the procedures contained in Section 53326 of the aforementioned Mello -Roos Community Facilities Act of 1982. FISCAL IMPACT: There are no fiscal impacts to the City since the proposed CFD No. 2002 -02 will provide funds to cover all of the associated landscape facilities maintenance costs. • RECOMMENDATION: Staff recommends that the City Council approve the Resolution establishing the City of Seal Beach Community Facilities District (CFD) No. 2002 -02 (Seal Beach Boulevard/Lampson Avenue Landscape Maintenance) and provide for the special election. Prepared By: Reviewed : •, M. K. Vukejevic, P.E. — .E. Doug . . �ancs,"., Deputy City Engineer Director of Public Works /City Engineer NOTED A /APPROVED 401 vJ Jo , Bahorski, City Manager Agenda Item • Community Facilities District Report for the City of Seal Beach Community Facilities District No. 2002 -02 (Seal Beach Blvd / Lampson Ave Landscape Maintenance) Prepared by: Harris & Associates February 18, 2003 City of Seal Beach February_18, 2002 CFD No. 2002 -02 (Seal Beach Blvd / Lampson Ave Landscape Maintenance) Page i COMMUNITY FACILITIES DISTRICT REPORT Table of Contents Introduction Pg. ii Part I Description of District, Boundary Map Pg. 1 Part II Description of Services Pg. 3 Part III Cost Estimate Pg. 4 Part IV Property Owners Pg. 5 Exhibit A — Rate and Method of Apportionment \ \Datafile \PWD Common \042 Council Reports and Rezo\2003 -02 -24 Council Meeting \CFD Report 2- 20 -03.doc City of Seal Beach February 18, 2002 CFD No. 2002 -02 (Seal Beach Blvd / Lampson Ave Landscape Maintenance) Page ii COMMUNITY FACILITIES DISTRICT REPORT Introduction The City of Seal Beach desires to establish a Community Facilities District (the "District ") for the purpose of funding the ongoing operation and maintenance of landscaping within the public rights - of -way. The City of Seal Beach has ordered the preparation of a report describing the proposed facilities to be financed by the District if it is formed. The proceedings will be conducted in accordance with the provisions of the "Mello -Roos Community Facilities Act of 1982," being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the "Act "). The report is to be prepared by, or under the direction of, the City Manager and other such officers responsible for providing the facilities to be financed by the proposed District. The report is to be prepared in accordance with Section 53321.5 of the Act and shall include: a. A description of the public capital facilities and/or services, by type, which will be required to adequately meet the needs of the District. b. An estimate of the fair and reasonable cost of the construction and/or acquisition of the proposed facilities, including the cost of acquisition of lands, rights -of -way and easements, and any physical facilities required in conjunction therewith, and incidental expenses in connection with said acquisition, including the costs of proposed bond financing and all other related costs as provided in Section 53345.3 of the Act. I, Joan E. Cox, P.E., authorized representative of Harris & Associates, on behalf of the responsible officer(s) directed to prepare the report for said District, hereby submit the following report consisting of four (4) parts. Part I A description of the proposed District and a diagram of the proposed boundaries. Part II A description of the proposed services. Part III A cost estimate of the proposed services. Part IV A listing of the property owners in the District. \ \Datafilc \PWD Common \042 Council Reports and Rezo\2003 -02 -24 Council Meeting \CFD Report 2- 20 -03.doc City of Seal Beach February 18, 2002 CFD No. 2002 -02 (Seal Beach Blvd / Lampson Ave Landscape Maintenance) Page 1 COMMUNITY FACILITIES DISTRICT REPORT PART I Description of District, Boundary Map The proposed boundaries of the City of Seal Beach Community Facilities District No. 2002 -02 (Seal Beach Blvd / Lampson Ave Landscape Maintenance) are as depicted on the Boundary Map, on file in the office of the City Clerk. A reduced copy is provided on the following page. The Assessor's parcels, shown below, define the District boundary. The description of each lot or parcel within the District is part of the records of the Assessor of the County of Orange and these records are, by reference, made part of this Report. List of Assessor's Parcel Numbers 13001216 13086116 13086121 13086126 21737104 13001250 13086117 13086122 13086127 21737105 • 13001254 13086118 13086123 21737101 21737106 13086114 13086119 13086124 21737102 21737107 13086115 13086120 13086125 21737103 21737108 \ \Datafile \PWD Common \042 Council Reports and Rezo\2003 -02 -24 Council Meeting \CFD Report 2- 20- 03.doc City of Seal Beach _ February 18, 2002 . . CFD No. 2002 -02 (Seal Beach Blvd / Lampson Ave Landscape Maintenance) Page 2 COMMUNITY FACILITIES DISTRICT REPORT lb J e 21 o> I z ti 6il4 i b O ° fin¢= ... btl 1 1 1 / W 1 11149ji 4 ! 114111 1 111 I DWI t 31 3 b m<01 li sl 1111° Ili bmidi \\\\, Iklii W 1 ili I — T x e ' ' n ti a 44 4 ■ & t , 3 Q n ■ A Y ' hl x . , ; ;, ; 1 rte+ --te ibi g -A. a e aie iavaa TaS 6 A onA Hors, ins ♦W J. S __ a o - 2 0 F \ \Datafile \PWD Common \042 Council Reports and Rezo\2003 -02 -24 Council Meeting \CFD Report 2- 20 -03.doc City of Seal Beach February 18, 2002 CFD No. 2002 -02 (Seal Beach Blvd / Lampson Ave Landscape Maintenance) Page 3 COMMUNITY FACILITIES DISTRICT REPORT PART 11 Description of Services The cost of the Services shall include incidental expenses, including the costs associated with forming the District, determination of the amount of the Special Tax, collection of the Special Tax, costs incurred in order to carry out the authorized purposes of the District and any other expenses incidental to the completion and inspection of the authorized work. Services The services are the maintenance of the parkways along the east side of Seal Beach Boulevard and the median in Seal Beach Boulevard adjacent to the District, the parkways along Lampson Avenue and the medians in Lampson Avenue adjacent to the District, and the parkway along the north side of the I -405 on/off -ramp adjacent to the District. - Maintenance means the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of landscape and hardscape improvements, including repair, removal or replacement of all or part of any of the landscaping, lighting facilities, or appurtenant facilities; providing for the life, growth, health and beauty of the landscaping, including cultivation, irrigation, trimming, spraying, fertilizing and treating for disease or injury; the removal of trimmings, rubbish, debris and other solid waste; and the cleaning, sandblasting, and painting of improvements to remove or cover graffiti. This includes the furnishing of water for the irrigation and the furnishing of electric current or energy, for any lights or irrigation facilities or appurtenant facilities. \ \Dataliile\PWD Common \042 Council Reports and Rezo\2003 -02 -24 Council Mecting \CFD Report 2- 20 -03.doc City of Seal Beach February 18, 2002 CFD No. 2002 -02 (Seal Beach Blvd / Lampson Ave Landscape Maintenance) Page 4 COMMUNITY FACILITIES DISTRICT REPORT PART 111 Cost Estimate A detailed cost estimate of the fair and reasonable cost of the proposed services and incidental expenses in connection with said services, including the cost of proposed financing and all other related costs is shown below: Area (sf) $ / sf $ / month $ / year Tax Area A Seal Beach Blvd Pkwy Landscape & Irrig. 27,100 $0.03 $813 $9,756 Seal Beach Blvd Median Landscape & Irrig. 3,100 $0.10 $310 $3,720 Subtotal Annual Maintenance Costs: $13,476 City Administrative Fee: $2,465 Tax Area A Estimated Total Annual Maintenance Costs: $15,941 Tax Area B Seal Beach Blvd Pkwy Landscape & Irrig. 15,500 $0.03 $465 $5,580 Seal Beach Blvd Median Landscape & Irrig. 1,300 $0.10 $130 $1,560 Lampson Ave Median Landscape & Irrig. 3,200 $0.10 $320 $3,840 Subtotal Annual Maintenance Costs: $10,980 City Administrative Fee: $2,008 Tax Area B Estimated Total Annual Maintenance Costs: $12,988 Tax Area C Seal Beach Blvd Pkwy Landscape & Irrig. 38,200 $0.03 $1,146 $13,752 Seal Beach Blvd Median Landscape & Irrig. 10,800 $0.10 $1,080 $12,960 1-405 Fry Pkwy Landscape & Irrig. 21,000 $0.03 $630 $7,560 Lampson Ave Pkwy Landscape & Irrig. 120,800 $0.03 $3,624 $43,488 Lampson Ave Median Landscape & Irrig. 3,200 $0.10 $320 $3,840 Subtotal Annual Maintenance Costs: $81,600 City Administrative Fee: $14,926 Tax Area C Estimated Total Annual Maintenance Costs: $96,526 \ \Datafle \PW D Common \042 Council Reports and Rezo\2003 -02 -24 Council Meeting \CFD Report 2 -20 -03 doc City of Seal Beach _ February 18, 2002 CFD No. 2002 -02 (Seal Beach Blvd / Lampson Ave Landscape Maintenance) Page 5 COMMUNITY FACILITIES DISTRICT REPORT PART IV Property Owners Assessor's - Tax Voting Parcel No. Owner Name Area Acres 13086114 TARGET CORPORATION T -1328 A 1 13086115 TARGET CORPORATION A 9 13086116 OLD RANCH TOWN CENTER L LC A 3 13086117 OLD RANCH TOWN CENTER L LC A 2 13086118 OLD RANCH TOWN CENTER L LC A 3 13086119 OLD RANCH TOWN CENTER L LC A 4 13086120 OLD RANCH TOWN CENTER L LC A 2 13086121 OLD RANCH TOWN CENTER LLC A 2 13086122 OLD RANCH TOWN CENTER LLC A 1 13086123 OLD RANCH TOWN CENTER LLC A 2 13086124 OLD RANCH TOWN CENTER LLC A 1 13086125 OLD RANCH TOWN CENTER LLC A 1 13086126 OLD RANCH TOWN CENTER LLC A 1 13086127 BANK, WORLD SAVINGS A 1 13001216 BIXBY RANCH CO B 36 13001250 BIXBY RANCH CO B 63 13001254 BIXBY RANCH CO B 57 21737101 SEAL BEACH LAND PARTNERS LLC C 1 21737102 SEAL BEACH LAND PARTNERS LLC C 1 21737103 LAMPSON AVENUE PARTNERS LLC C 1 21737104 LAMPSON AVENUE PARTNERS LLC C 1 21737105 SEAL BEACH HOTEL C 1 21737106 SEAL BEACH HOTEL C 2 21737107 SEAL BEACH ASSISTED LIVING LLC C 1 21737108 SEAL BEACH ASSISTED LIVING LLC C 5 • • Total Acres: 202 \ \Datafile \PWD Common \042 Council Reports and Rezo\2003 -02 -24 Council Meeting \CFD Report 2- 20 -03.doc 0 City of Seal Beach EXHIBIT "A" December 2, 2002 CFD No. 2002 -02 (Seal Beach Blvd. / Lampson Ave. Landscape Maintenance) Page A -1 Rate and Method of Apportionment of Special Taxes Rate and Method of Apportionment of Special Taxes Community Facilities District No. 2002 -02 (Seal Beach Blvd. / Lampson Ave. Landscape Maintenance) of the City of Seal Beach, County of Orange A Special Tax shall be levied on each Parcel of Taxable Property within Community Facilities District No. 2002 -02 (Seal Beach Blvd. / Lampson Ave. Landscape Maintenance) of the City of Seal Beach, County of Orange (the "District "), and collected according to the special tax liability determined by the City of Seal Beach (the "City ") through the application of the following procedures. All of the property within the District, unless otherwise exempted by law or the express provisions of the Rate and Method of Apportionment expressed below, shall be taxed to the extent and in the manner provided below. Unless otherwise indicated, all capitalized terms shall have the meanings set forth in Section C of this Rate and Method of Apportionment entitled "Definitions ". It is intended that all Special Taxes applicable to Parcels be collected in the same manner and at the same time as ordinary ad valorem property taxes of the City and that special taxes so levied will be subject to the same penalties and procedures, sale and lien priority in case of delinquency as is provided for ad valorem taxes of the City. Notwithstanding the foregoing, the City may elect to collect the Special Taxes at such other times or in such other manner as necessary or convenient to satisfy the obligations of the District. A. Maximum Special Tax The maximum Special Tax that may be levied in the Fiscal Year beginning July 1, 2003 and in each Fiscal Year thereafter on each parcel shall not exceed the base maximum special tax shown below, adjusted pursuant to the annual adjustment shown below: Base Maximum Special Tax: Tax Area A - $638 per gross land acreage multiplied by the Land Area of the Parcel. Tax Area B - $84 per gross land acreage multiplied by the Land Area of the Parcel. Tax Area C - $11,400 per gross land acreage multiplied by the Land Area of the Parcel. • Annual Adjustment: Each Fiscal Year, commencing with the Fiscal Year beginning July 1, 2003, the maximum Special Tax shall be adjusted by the annual change in the Consumer Price Index for all Urban Consumers in the Los Angeles- Riverside- Orange County area, as measured between March of the second Fiscal Year prior to that Fiscal Year and March of the Fiscal Year immediately preceding that Fiscal Year. B. Calculation of Special Tax Levy On or about July 1 of each year, commencing July 1, 2003, but in any event in sufficient time to include the levy of the Special Taxes on the County's secured tax roll, the District Administrator shall classify each Parcel within the District as Taxable Property or Non - Taxable Property. Parcels subject \ \Datafile\PWD Common \042 Council Reports and Rezo\2003 -02 -24 Council Meeting \CFD Report 2- 20- 03.doc City of Seal Beach EXHIBIT "A" December 2, 2002 CFD No. 2002 -02 (Seal Beach BIvd.1 Lampson Ave. Landscape Maintenance) Page A -2 Rate and Method of Apportionment of Special Taxes to levy of the Special Tax shall be determined by the District Administrator based upon the records of the County Assessor as of the March 1 preceding such July 1. The District Administrator shall then determine the estimated aggregate Special Tax Requirement required for each Fiscal Year for each Tax Area commencing July 1, 2003, and levy on each Parcel, as follows: Step 1: Classify by Tax Area each Parcel of Taxable Property in the District. Step 2: Determine the Land Area of Taxable Property in each Tax Area on a Parcel -by- Parcel basis, and determine the total Land Area of Taxable Property in each Tax Area. Step 3: Calculate the Annual Special Tax Rate for Taxable Property for each Tax Area by dividing the estimated aggregate Special Tax Requirement for that Tax Area by the total Land Area of Taxable Property in that Tax Area. Step 4: The annual Special Tax for each Parcel shall be the lesser of: (i) the total Taxable Property Land Area of that Parcel multiplied by the Annual Special Tax Rate for Taxable Property in the Tax Area in which the Parcel is located; or (ii) the maximum Special Tax calculated pursuant to Section A. The resultant sum is the annual Special Tax for the Taxable Property. C. Definitions Act means the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division ,2 of Title 5 of the Government Code of the State of California. Administrative Expenses means any or all of the following: the expenses of the City, whether by the City or designee of the City, or both, in carrying out its duties with respect to the District (including, but not limited to, the computation, levy and collection of the Special Taxes) including the fees and expenses of its counsel, any fees of the County related to the District or the collection of Special Taxes, an allocable share of the salaries of the City staff directly related thereto and a proportionate amount of City general administrative overhead related thereto, any amounts paid by the City from its general funds with respect to the District and all other costs and expenses of the City incurred in connection with the discharge of its duties in any way related to administration of the District. Annual Special Tax Rate means the special tax rate required in a Tax Area to generate the Special Tax Requirement in a given Fiscal Year, as calculated in Step 3 of Section B for that Tax Area. Boundary Map means the map on file with the City Clerk showing the proposed boundaries of the District. \ \Datafile \PWD Common \042 Council Reports and Rezo\2003 -02 -24 Council Meeting \CFD Report 2- 20 -03.doc City of Seal Beach EXHIBIT "A" _ December 2, 2002 CFD No. 2002 -02 (Seal Beach Blvd. / Lampson Ave. Landscape Maintenance) Page A -3 Rate and Method of Apportionment of Special Taxes City means the City of Seal Beach. County means the County of Orange. County Assessor means the Assessor of the County of Orange. District means Community Facilities District No. 2002 -02 (Seal Beach Blvd. / Lampson Ave. Landscape Maintenance) of the City of Seal Beach, County of Orange. District Administrator is any firm, entity, person or persons who the City may hire or appoint from time to time to compute and provide for the levy and collection of the Special Taxes within the District. Fiscal Year means the period starting on July 1 and ending the following June 30. Land Area means the measure of Taxable Property for a Parcel, in gross acres of land, as shown on the County Assessor's Parcel Maps. Maintenance Expenses means the expenses of the City, whether by the City or designee of the City, or both, in the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing, including repair, removal or replacement of all or part of any of the landscaping, lighting facilities, or appurtenant facilities; providing for the life, growth, health and beauty of the landscaping, including cultivation, irrigation, trimming, spraying, fertilizing and treating for disease or injury; the removal of trimmings, rubbish, debris and other solid waste; and the cleaning, sandblasting, and painting of improvements to remove or cover graffiti. This includes the furnishing of water for the irrigation and the furnishing of electric current or energy, for any lights or irrigation facilities or appurtenant facilities. Non - Taxable Property means property within the District boundaries that is exempt from the special tax pursuant to law at the time of district formation, or that is a. Owned by, conveyed to or irrevocably offered for dedication to a public agency, or b. Utilized exclusively for landscaping purposes, or c. Utilized for residential purposes. Parcel means any County Assessor's parcel or portion thereof that is within the boundaries of the District based on the equalized tax rolls of the County. Special Tax means the total special tax levied on each Parcel with Taxable Property per Fiscal Year to fund the Special Tax Requirement. Special Tax Requirement means, for any Tax Area, the amount required in any Fiscal Year for the District to pay for authorized Maintenance Expenses and Administrative Expenses, as well as any shortfall from the previous year's budget. In arriving at the Special Tax Requirement, the District Administrator shall take into account the reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year and shall give a credit for funds available to reduce the annual Special Tax levy. \\Datafile \PWD Common \042 Council Reports and Rezo\2003 -02 -24 Council Meeting \CFD Report 2 -20-03 doc 1 City of Seal Beach EXHIBIT "A" December 2, 2002 CFD No. 2002-02 (Seal Beach Blvd. / Lampson Ave. Landscape Maintenance) Page A -4 Rate and Method of Apportionment of Special Taxes Tax Area A means the properties within Tract No. 15767 (as shown on the Boundary Map) funding the Maintenance Expenses associated with the maintenance of the adjacent parkways along Seal Beach Boulevard and the median in Seal Beach Boulevard. Tax Area B means the properties comprising the Old Ranch Golf Course (as shown on the Boundary Map) funding the Maintenance Expenses associated with the maintenance of the adjacent parkways along Seal Beach Boulevard, the median in Seal Beach Boulevard and half of the median in Lampson Avenue. Tax Area C means the properties within Parcel Map 307 -5 (as shown on the Boundary Map) funding the Maintenance Expenses associated with the maintenance of the adjacent parkways along Seal Beach Boulevard, Lampson Avenue and the I -405 Freeway on/off ramp, the median in Seal Beach Boulevard, and half of the median in Lampson Avenue. Taxable Property is all real property within the boundaries of the District that is not classified as Non - Taxable Property. • • • \\Datafile\PWD Common \042 Council Reports and Rezo\2003 -02 -24 Council Meeting \CFD Report 2- 20- 03.doc