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HomeMy WebLinkAboutRES 2021-122 Declaring Intention to Levy and Collect Assessments within Assement DistrictCITY OF S AN BERNARDINO Maintenance Assessment Districts Volume 3 FISCAL YEAR 2021-22 PRELIMINARY ENGINEER'S REPORT Table of Contents City of San Bernardino MAD’s Engineer’s Report Fiscal Year 2021-22 Sections i. Executive Summary i ii. Introduction ii iii. Engineers Signature vii 1. MAD No. 1025 1 2. MAD No. 1027 3 3. Assessment Diagrams 5 4. Assessment Rolls 6 Appendices Appendix A – Assessment Rolls Appendix B – Assessment Diagrams Appendix C – MAD District Cost Summary i. Executive Summary Page | i City of San Bernardino MAD’s Engineer’s Report Fiscal Year 2021-22 AGENCY: CITY OF SAN BERNARDINO PROJECT: MAINTENANCE ASSESSMENT DISTRICTS ENGINEER REPORT TO: CITY COUNCIL CITY OF SAN BERNARDINO STATE OF CALIFORNIA ENGINEER’S REPORT PURSUANT TO THE "ASSESSMENT LAW" Pursuant to direction from the City Council (the “City Council”) of the City of San Bernardino (the “City”), State of California, submitted herewith is the Engineer’s Report (the “Report”) for Maintenance Assessment Districts, consisting of the following parts, pursuant to the Charter of the City of San Bernardino and Section 19 of Article 16 and in compliance with Article XIII D of the Constitution of the State of California (the “Assessment Law”), and which is in accordance with Resolution No. 2021-__ adopted by the City of San Bernardino City Council, San Bernardino County, California ordering preparation of this Report. This Report is applicable for the ensuing 12-month period, being the Fiscal Year commencing July 1, 2021 to June 30, 2022. Section 1 PLANS AND SPECIFICATIONS including a general description of the maintenance and plans of the landscaping and irrigation systems proposed to be funded. Section 2 A COST ESTIMATE of maintaining the landscaping and irrigation systems including incidental costs and expenses in connection therewith for Fiscal Year 2021-22, is as set forth on the lists thereof, attached hereto. Section 3 The METHOD OF APPORTIONMENT OF ASSESSMENT contains the method of apportionment of assessments, indicating the proposed assessment of the total amount of the costs and expenses of the improvements upon several lots and parcels of land within the Districts, in proportion to the estimated benefits to be received by such lots and parcels. Section 4 ASSESSMENT DIAGRAMS showing the Districts, the lines and dimensions of each parcel of land within said Districts, as the same exists on the maps of the County of San Bernardino Assessor for Fiscal Year 2021-22, is filed in the offices of the City of San Bernardino. An Assessment Diagram of the Districts can be found in Appendix B. Section 5 ASSESSMENT ROLLS showing the actual assessment for the Fiscal Year 2021-22 apportioned to each parcel as shown on the latest equalized roll at the County Assessor’s Office can be found in Appendix A. Maintenance Assessment District Name Actual Assessment per Unit ($) Maximum Assessment per Unit ($) MAD No. 1025 Palm Avenue and Washington Avenue Area $213.66 $213.66 MAD No. 1027 Waterman Avenue and Washington Street Area $161.76 $231.44 ii. Introduction Page | ii City of San Bernardino MAD’s Engineer’s Report Fiscal Year 2021-22 Background The City administers and maintains 63 Maintenance Assessment Districts (the “MADs”) and associated zones that have been established over the last 39 years. The MADs provide a financing mechanism to maintain the public maintenance areas associated with each particular development, ensuring the continued maintenance, operations, servicing, and administration of various improvements l ocated within the public right-of-way and dedicated easements; all within the boundaries of each MADs. There are 2 MADs which have no improvements and are, therefore, not yet maintained. This report has been prepared to support the annual assessment of the MADs within the City’s boundaries. The following information is presented to provide general information about the MADs. Additional details specific to each MAD are listed in each MAD’s dedicated section of this Engineer’s Report. Current Annual Administration As required by the Assessment Law, the Report includes: (1) a description of the improvements to be operated, maintained and serviced by the District, (2) an estimated budget for the District, and (3) a listing of the proposed Fiscal Year 2021-22 assessments to be levied upon each assessable lot or parcel within the Districts. The City of San Bernardino will hold a Public Hearing on July 21, 2021, regarding the District which will provide an opportunity for any interested person to be heard. At the conclusion of the Public Hearing, the City Council may adopt a resolution confirming the assessment rates as originally proposed or as modified. Payment of these annual assessments for each parcel will be made in the same manner and at the same time as payments are made for their annual property taxes. All funds collected through the assessments must be placed in a special fund and can only be used for the purposes stated within this Report. Designation of Maintenance Assessment District/Zones: For your reference, you can find the following Maintenance Assessment Districts within the corresponding Volumes listed below: Volume 1: MAD 951 (Zone 1), MAD 951 (Zone 2), MAD 952 (Zone 1, 2 and 2A), MAD 952 (Zone 3), MAD 953, MAD 956, MAD 959 (Zone 1), MAD 962, MAD 963, MAD 968, MAD 974, MAD 975, MAD 976, MAD 981, MAD 982, MAD 986, MAD 989, MAD 991, MAD 993, MAD 997, MAD 1001, MAD 1002, MAD 1005, MAD 1007, MAD 1012, and MAD 1016. These Maintenance Assessment Districts listed are contained within Volume 1 and does not contain an annual escalator. Volume 2: MAD 1017, MAD 1019, MAD 1020, MAD 1023 and MAD 1024. These Maintenance Assessment Districts listed are contained within Volume 2 and does contain an annual CPI escalator only. Volume 3: MAD 1025 and MAD 1027. These Maintenance Assessment Districts listed are contained within Volume 3 and has a 25% general benefit of major arterial streets, 20% general benefit of secondary arterial streets, 15% general benefit of collector streets, and 100% special benefit of the local streets. These Maintenance Assessment Districts listed are contained in Volume 3 and contains an annual escalator of 5% or CPI, whichever is less with other direct and special benefit requirements only pertaining to this Maintenance District. Volume 4: MAD 1028, MAD 1029, MAD 1030, MAD 1031, MAD 1032, MAD 1035 (Zone 1), MAD 1035 (Zone 2), MAD 1036, MAD 1037, MAD 1038, MAD 1039, MAD 1040, MAD 1041, MAD 1042, MAD 1043 (Zone 1), MAD 1043 (Zone 2), MAD 1045, MAD 1046, MAD 1047, MAD 1048, MAD 1050, MAD 1052, MAD 1054, MAD 1055, MAD 1056, MAD 1057, MAD 1059, MAD 1060, MAD 1063, MAD 1064, and MAD 1068. These Maintenance Assessment Districts listed are contained within Volume 4 and contains an annual escalator of 5% or CPI, whichever is less. Volume 5: MAD 1022 (Zone 1), MAD 1022 (Zone 2) and MAD 1022 (Zone 3). These Maintenance Assessment Districts listed are contained within Volume 5 and contains an annual escalator of 5% or CPI, whichever is less with other direct and special benefit requirements only pertaining to this Maintenance District. ii. Introduction Page | iii City of San Bernardino MAD’s Engineer’s Report Fiscal Year 2021-22 Cost Estimate The cost estimate contains each of the items specified in the Assessment Law. The Assessment Law provides that the estimated costs of the improvements shall include the total cost of the improvements for the entire Fiscal Year 2021-22, including incidental expenses, which may include operating reserves. The Assessment Law also provides that the amount of any surplus, deficit, or contribution be included in the estimated cost of improvements. The net amount to be assessed on the lots or parcels within the District is the total cost of installation, maintenance, and servicing with adjustments either positive or negative for reserves, surpluses, deficits, and/or contributions. The District includes an annual inflation factor for future increases in assessments by a percentage equal to the increase in the Consumer Price Index (CPI) in the Los Angeles-Riverside-Orange County Area, published by the United States Department of Labor, Bureau of Labor Statistics over the previous year, or 5%, whichever is less. There is a 3.56% proposed inflationary increase in the assessment per acre or per parcel as applicable over the assessment levied for Fiscal Year 2020-21, which is consistent with the ballot proposition approved by the qualified electors when establishing said District. Changes in Organization There are no changes in organization for Fiscal Year 2021-22. Proposition 218 Compliance On November 5, 1996 California voters approved Proposition 218 entitled “Right to Vote on Taxes Act” which added Article XIII D to the California Constitution. While its title refers only to taxes, Proposition 218 establishes new procedural requirements for the formation and administration of assessment districts. Proposition 218 also requires that with certain specified exceptions, which are described below, all existing assessment districts must be ratified by the property owners within the District using the new procedures. Some of these exceptions include: 1. Any assessment imposed exclusively to finance the capital cost or maintenance and operation expenses for streets. 2. Any assessments levied pursuant to a petition signed by the persons owning all of the parcels subject to the assessment at the time the assessment was initially imposed. However, even if assessments are initially exempt from Proposition 218, if the assessments are increased in the future, the City will need to comply with the provisions of Proposition 218 for that portion of the increased assessment formula (e.g., CPI increase). Proposition 218 does not define this term “streets”, however, based on the opinions of the public agency officials, attorneys, assessment engineers, and Senate Bill 919, it has been determined that streets include all public improvements located within the street right-of- way. This would include median and parkway landscaping, traffic signals, safety lighting, and street lighting. Proposition 218 defines “assessment” as “any levy or charge upon real property by an agency for a special benefit conferred upon the real property”, California Constitution, Article XIII D, §2(b). A special assessment, sometimes called a “benefit assessment,” is a charge generally levied upon parcels of real property to pay for benefits the parcels receive from local improvements. Special assessments are levied according to statutory authority granted by the Legislature or, in some instances, local charters. Distinguishing among taxes, fees and assessments can be difficult and often depends on the context in which the distinction is made. For example, taxes, assessments and property-related fees all may be imposed on property. The key feature that distinguishes an assessment from a tax, fee, or charge is the existence of a special benefit to real property. Without identifying a special benefit, there can be no assessment. Distinguishing General and Special Benefit Proposition 218 added a set of procedures and requirements which a local government must follow to levy an assessment. In addition to notice, hearing, and assessment ballot proceedings, Proposition 218 provides that “only special benefits are assessable” and requires a local government to “separate the general benefits from the special benefits conferred on a parcel.” By its nature most every public improvement financed through an assessment district contains an element of public benefit. The test is: does there exist, with relation to the improvement, a special benefit to the property assessed? The law requires that portion of the cost of the improvement which benefits the public generally, to be separated from that portion of the cost of the improvement which specially ii. Introduction Page | iv City of San Bernardino MAD’s Engineer’s Report Fiscal Year 2021-22 benefits assessed properties. Proposition 218 provides the following definition of “special benefit”: “Special benefit” means a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large. General enhancement of property value does not constitute “special benefit”. The actual assessment and the amount of the assessment for the Fiscal Year 2021-22 apportioned to each parcel as shown on the latest equalized roll at the County Assessor’s office are listed in Appendix A of this Report. The description of each lot or parcel is part of the records of the County Assessor of the County of San Bernardino and such records are, by reference, made part of this Report. Direct and Special Benefit The maintenance of improvements provides direct and special benefit to those properties located within each of the Districts. Each and every lot or parcel within the Districts, receives a particular and distinct benefit from the improvements over and above general benefits conferred by the improvements. First, improvements were conditions of approval for the creation or development of the parcels. In order to create or develop the parcels, the City required the original developer to install and/or guarantee the maintenance of the improvements, and appurtenant facilities serving the lots or parcels. Therefore, each and every lot or parcel within the District could not have been developed in the absence of the installation and expected maintenance of these facilities. In addition, the improvements continue to confer a particular and distinct special benefit upon parcels within the Districts because of the nature of the improvements. The proper maintenance of landscaping, multi-purpose trails, fencing, fossil filters, bio-swales, streetlights, traffic signals, and bridge lights, and graffiti abatement, and appurtenant facilities specially benefit parcels within the Districts by moderating temperatures, providing oxygenation, attenuating noise from adjacent streets and controlling dust for those properties in close proximity to the landscaping. Improved erosion and water quality control, dust abatement, increased public safety (e.g., control sight distance restrictions and fire hazards), improved neighborhood property protection and aesthetics, controlling or restricting the flow of traffic into and out of the development, increasing public safety for both pedestrians and the motoring public, and increasing traffic safety by improving visibility. The spraying and treating of landscaping for disease reduces the likelihood of insect infestation and other diseases spreading to landscaping located throughout the properties within the Districts. Streetlights also provide safety for pedestrians and motorists living and owning property in the Districts during the nighttime hours, and to assign rights-of-way for the safety of pedestrians and motorists by defining a specific path during all hours of the day. Streets are constructed for the safe and convenient travel of vehicles and pedestrians. They also provide an area for underground and overhead utilities. These elements are a distinct and special benefit to all developed parcels in the Districts. Streetlights are installed on and are for street purposes and are maintained and serviced to allow the street to perform to the standards it was designed. Streetlights are determined to be an integral part of “streets” as a “permanent public improvement.” One of the principal purposes of fixed roadway lighting is to create a nighttime environment conducive to quick, accurate, and comfortable seeing for the user of the facility. These factors, if attained, combine to improve traffic safety and achieve efficient traffic movement. Fixed lighting can enable the motorist to see detail more distinctly and to react safely toward roadway and traffic conditions present on or near the roadway facility. The system of streets within the Districts are established to provide access to each parcel in the Districts. Streetlights provide a safer street environment for owners of the parcels served. If the parcels were not subdivided to provide individual parcels to owners within the Districts, there would be no need for a system of streets with streetlights. Therefore, the installation of streetlights is for the express, special benefit of the parcels within the District. The proper maintenance of the landscaping, ornamental structures, and appurtenant facilities reduces property-related crimes (especially vandalism) against properties in the District through the screening of properties within the District from arterial streets. Finally, the proper maintenance of landscaping, multi-purpose trails, fencing, fossil filters, bio-swales, and graffiti abatement, and appurtenant structures improves the attractiveness of the properties within the Districts. This provides a positive visual experience each and every time a trip is made to or from the property and provides an enhanced quality of life and sense of well-being for properties within the Districts. Because all benefiting properties consist of a uniform land use, it is determined that all lots or parcels benefit equally from the improvements and the costs and expenses for the provision of electricity for the streetlights and traffic signals and the maintenance of landscaping, multi-purpose trails, fencing, fossil filters, bio-swales, traffic signals, and bridge lights, and graffiti abatement are apportioned on a per acre, per EDU (Equivalent Dwelling Unit), or per parcel basis. ii. Introduction Page | v City of San Bernardino MAD’s Engineer’s Report Fiscal Year 2021-22 Based on the benefits described above, landscaping, multi-purpose trails, fencing, fossil filters, bio-swales, streetlights, traffic signals, and bridge lights, and graffiti abatement are an integral part of the quality of life of the Districts. This quality of life is a special benefit to those parcels that are not government owned easements, utility easements, and flood channel parcels. Government owned easements, utility easements, and flood channel parcels do not benefit from the improvements due to their use and lack of habitation on such parcels. Parcels of this nature are usually vacant narrow strips of land or flood control channels and therefore do not generate or experience pedestrian or vehicular traffic. Nor do these types of parcels support dwelling units or other structures that would promote frequent use of the parcels by the traveling public. As a result of this lack of activity on such parcels they do not receive any benefit from landscaping, multi-purpose trails, fencing, fossil filters, bio-swales, streetlights, traffic signals, and bridge lights, and graffiti abatement and are not assessed. General Benefit The Benefit received by the parcels within the boundaries of the Districts is determined to be of more than ordinary public benefit, thus each parcel within the Districts being assessed receives special benefit from the improvements. If the property not within the boundaries of a District also receives some benefit from the improvements, consideration must then be given to a general benefit given by the improvements, which may not be assessed to the parcels within the Districts. Since the installation and maintenance of the landscaping and establishment of an assessment district for the maintenance of the landscaping is specific and incidental to this development, it is further determined that the improvements to be maintained by the assessment district are of special benefit to the district only and are 100% assessable to the parcels within the boundaries of the assessment district, except as follows: 1. Areas of maintenance that front on major arterial streets, as determined by the Circulation Plan of the City’s General Plan, are determined to be 25% general benefit and the proportional costs thereof are not assessable to the District. 2. Areas of maintenance that front on secondary arterial streets, as determined by the Circulation Plan of the City’s General Plan, are determined to be 20% general benefit and the proportional costs thereof are not assessable to the District. 3. Areas of maintenance that front on collector streets, as determined by the Circulation Plan of the City’s General Plan, are determined to be 15% general benefit and the proportional costs thereof are not assessable to the District. 4. Areas that front on local streets are determined to be 100% special benefit and are 100% assessable to the District. These percentages are based on the traffic circulation for the various street classifications. Method of Apportionment The Assessment Law permits the establishment of assessment districts by agencies for the purpose of providing certain public improvements, which include the construction, maintenance, and servicing of public lights, landscaping, dedicated easements for landscape use, and appurtenant facilities. The Assessment Law further provides that assessments may be apportioned upon all assessable lots or parcels of land within an assessment district in proportion to the estimated benefits to be received by each lot or parcel from the improvements rather than assessed value. “The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.” The formula used for calculating assessments reflects the composition of the parcels and the improvements and services provided by the District to fairly apportion the costs based on the estimated benefit to each parcel. ii. Introduction Page | vi City of San Bernardino MAD’s Engineer’s Report Fiscal Year 2021-22 In addition, Article XIII D of the California Constitution (the “Article”) requires that a parcel's assessment may not exceed the reasonable cost of the proportional special benefit conferred on that parcel. The Article provides that only special benefits are assessable, and the City must separate the general benefits from the special benefits conferred on a parcel. A special benefit is a particular and distinct benefit over and above general benefits conferred on the public at large, including real property within the district. The general enhancement of property value does not constitute a special benefit. Whereas, the City Council of the City of San Bernardino, State of California, did, pursuant to the provisions of the Assessment Law, adopted resolutions to initiate proceedings to form special assessment districts. Whereas, the City Council, did direct the appointed engineer to prepare and file an annual report, in accordance with the Assessment Law. Whereas, Section 22567 of said Article 4 states the Report shall consist of the following; a. Maintenance plans for the improvements b. An estimate of the costs of the improvements c. A diagram for the assessment districts d. An assessment of the estimated costs of the maintenance of the improvements Now, Therefore, I, the appointed ENGINEER, acting on behalf of the City of San Bernardino, pursuant to the Assessment Law, do hereby submit the following: 1. Pursuant to the provisions of law the costs and expenses of the districts have been assessed upon the parcels of land in the districts benefited thereby in direct proportion and relation to the estimated benefits to be received by each of said parcels. For particulars as to the identification of said parcel, reference is made to the Assessment Diagrams, a reduced copy of which is included herein. 2. As required by law, the Diagrams are filed herewith, showing the districts, as well as the boundaries and dimensions of the respective parcels and subdivisions of land within said districts as the same exist each of which subdivisions of land or parcels or lots, respectively, have been given a separate number upon said Diagrams and in the Assessment Rolls contained herein. 3. The separate numbers given the subdivisions and parcels of land, as shown on said Assessment Diagrams and Assessment Rolls, correspond with the numbers assigned to each parcel by the San Bernardino County Assessor. Reference is made to the County Assessment Roll for a description of the lots or parcels. 4. There are no parcels or lots within the assessment districts that are owned by a federal, state or other local governmental agency that will benefit from the services to be provided by the assessments to be collected. The City requested Spicer Consulting Group, LLC., to prepare and file an Engineer’s Report for the assessment districts pursuant to the Assessment Law presenting plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the maintenance, operations and servicing of the improvements for the assessment districts for the referenced Fiscal Year, diagrams for the districts showing the areas and properties to be assessed, and assessments of the estimated costs of the maintenance, operations and servicing the improvements, assessing the net amount upon all assessable lots and-or parcels within the districts in proportion to the special benefit received. ii. Engineers Signature Page | vii City of San Bernardino MAD’s Engineer’s Report Fiscal Year 2021-22 Executed this day of 2021.     FRANCISCO MARTINEZ JR PROFESSIONAL CIVIL ENGINEER NO. 84640 ENGINEER OF WORK CITY OF SAN BERNARDINO STATE OF CALIFORNIA     I HEREBY CERTIFY that the enclosed Engineer’s Report, together with the Assessment Roll and Assessment Diagram thereto attached, was filed with me on the _______ day of ____________, 2021. By Adoption of Resolution No. _______ by the City Council. CITY CLERK CITY OF SAN BERNARDINO STATE OF CALIFORNIA I HEREBY CERTIFY that the enclosed Engineer’s Report, together with the Assessment Roll and Assessment Diagram thereto attached, was approved and confirmed by the City Council of the City of San Bernardino, California, on the _____day of ___________, 2021. CITY CLERK CITY OF SAN BERNARDINO STATE OF CALIFORNIA 1. MAD No. 1025 Page | 1 City of San Bernardino MAD’s Engineer’s Report Fiscal Year 2021-22 Background Maintenance Assessment District No. 1025 was formed on 2000 to fund the maintenance of various improvements and services within the boundaries of the District. Description of District Boundaries The boundaries of MAD No. 1025 are shown on the Assessment Diagram located in Appendix B of this Report and is generally described as follows: The centerline of Washington Avenue on the north, Palm Avenue on the east, and the southwesterly line of Tract No. 15743 on the southwest. Description of Improvements and Services This Report provides information specific to the parcels within the boundaries of Maintenance Assessment District No. 1025. The improvements to be maintained include 18,150 sq. ft. of landscaping and all appurtenances (including one tree) along portions of the west side of Palm Avenue, south of Washington Avenue, portions of Washington Avenue adjacent to Lot 1 of Tract No. 15743 and along portions of the south side of Red Sky Avenue, all within Tract No. 15743. Estimate of Costs Please see Appendix C of this report for the MAD District Cost Summary that outlines the estimated cost of operating, maintaining, servicing and administering the improvements for Fiscal Year 2021-22. The Fiscal Year 2020-21 costs are also provided for comparison purposes. Method of Apportionment Pursuant to the Assessment Law, all parcels within the boundaries of the district that have special benefit conferred upon them as a result of the maintenance and operation of improvements are identified and the proportionate special benefit derived by each identified parcel has been determined in relationship to the entire cost of the maintenance and operation of improvements. Only parcels that receive direct and special benefit are assessed, and each parcel is assessed in proportion to the estimated benefit received. Landscaping and its proper maintenance enhances the esthetics of any given area and the benefit received by the owners of properties in the area is determined to be equal to the number of residential units that utilize the landscaped area either as ingress and egress or by actual physical use of the land as in the cases of large open areas. The boundaries of the District are drawn with this in mind and the Resolution of Intention delineates the specific areas of maintenance, which will benefit all of the properties within the boundaries. Thus, each residential lot or unit, be it a single-family lot, condominium, or an apartment will be assessed equal share in the cost of maintenance (1 residential lot or unit = 1 Assessment Unit). Based on the City of San Bernardino’s current circulation element of its General Plan, Palm Avenue is classified as a secondary arterial street and represents 65.84% of the total areas of maintenance. Pursuant to the above determination of benefit, 20% of 65.84% of the total cost of maintenance will not be assessed to the District. The remaining area of maintenance along the southwesterly side of Red Sky Avenue, which is classified as a local street, is 100% special benefit and assessable to the District. The General Benefit is calculated by taking the Area of General Benefit and dividing it by the total area to be maintained. The then percentage of total area of General Benefit is multiplied by the total area maintenance costs. The total cost of a General Benefit area is then multiplied by the derived factor from above (20%). The result is the General Benefit of 13.17% needed for the District. Publicly owned lands within the Assessment District, if any, are subject to assessments, unless they receive no benefit with the exception of public right of way, which is not subject to assessments. Presently, no parcels within the District are publicly owned 1. MAD No. 1025 Page | 2 City of San Bernardino MAD’s Engineer’s Report Fiscal Year 2021-22 The Fiscal Year 2021-22 Assessment Spread. Total Fiscal Year 2021-22 Budget $8,119.13 Assessment Units 38 Fiscal Year 2021-22 Collectible per Unit $213.66 The Maximum allowable Assessment Rate for Fiscal Year 2021-22 is $213.66 per unit. Due to the nature of landscape maintenance; it is anticipated that there will be future increases in assessments as contract, labor, water and energy costs are all subject to future increases. Annual increases may be increased without further notice or public hearing by a percentage equal to the increase in the Consumer Price Index (CPI) for all Urban Consumers in the Los Angeles-Riverside-Orange County area, published by the United States Department of Labor, Bureau of Labor Statistics over the previous year, or 5%, whichever is less. The CPI is typically used for maintenance districts. The rate varies from year to year, but in no event will an increase, if needed, exceed 5% without a majority approval of property owners in the District. 2. MAD No. 1027 Page | 3 City of San Bernardino MAD’s Engineer’s Report Fiscal Year 2021-22 Background Maintenance Assessment District No. 1027 was formed on 2001 to fund the maintenance of various improvements and services within the boundaries of the District. Description of District Boundaries The boundaries of MAD No. 1027 are shown on the Assessment Diagram located in Appendix B of this Report and is generally described as follows: The centerlines of Commercial Road on the north, Watermen Avenue on the east, Washington Street on the south, and Wier Road, Heritage Lane, and Foxcroft Way on the west, all within the boundaries of Tract Nos. 15826 and 15991, and within a certain easement granted to the City of San Bernardino by the City of Colton. Description of Improvements and Services This Report provides information specific to the parcels within the boundaries of Maintenance Assessment District No. 1027. The improvements to be maintained include 97,749 sq. ft. landscaping and all appurtenances (including one tree) along portions of Waterman Avenue, Washington Street, Wier Road, Heritage Lane, Foxcroft Way, Commercial Road, Carol Way, and Beverly Drive within Tract Nos. 15826 and 15991, and within a certain easement granted to the City of San Bernardino by the City of Colton. Estimate of Costs Please see Appendix C of this report for the MAD District Cost Summary that outlines the estimated cost of operating, maintaining, servicing and administering the improvements for Fiscal Year 2021-22. The Fiscal Year 2020-21 costs are also provided for comparison purposes. Method of Apportionment Pursuant to the Assessment Law, all parcels within the boundaries of the district that have special benefit conferred upon them as a result of the maintenance and operation of improvements are identified and the proportionate special benefit derived by each identified parcel has been determined in relationship to the entire cost of the maintenance and operation of improvements. Only parcels that receive direct and special benefit are assessed, and each parcel is assessed in proportion to the estimated benefit received. Landscaping and its proper maintenance enhances the esthetics of any given area and the benefit received by the owners of properties in the area is determined to be equal to the number of residential units that utilize the landscaped area either as ingress and egress or by actual physical use of the land as in the cases of large open areas. The boundaries of the District are drawn with this in mind and the Resolution of Intention delineates the specific areas of maintenance, which will benefit all of the properties within the boundaries. Thus, each residential lot or unit, be it a single-family lot, condominium, or an apartment will be assessed equal share in the cost of maintenance (1 residential lot or unit = 1 Assessment Unit). Waterman Avenue and Washington Street are both classified as major arterial streets and represent 39.13% of the total area of maintenance. Pursuant to the above determination of benefit, 25% of 39.13% of the total cost of maintenance will not be assessed to the District The remaining area of maintenance along the easterly side of Wier Road, Heritage Lane, Foxcroft Way, and the south side of Commercial Road, the north and south side of Beverly Drive and the north side of Carol Way are classified as local streets, and are 100% special benefit assessable to the District. The General Benefit is calculated by taking the Area of General Benefit and dividing it by the total area to be maintained. The then percentage of total area of General Benefit is multiplied by the total area maintenance costs. The total cost of a General Benefit area is then multiplied by the derived factor from above (25%). The result is the General Benefit of 9.8% needed for the District. Publicly owned lands within the Assessment District, if any, are subject to assessments, unless they receive no benefit with the exception of public right of way, which is not subject to assessments. Presently, no parcels within the District are publicly owned. 2. MAD No. 1027 Page | 4 City of San Bernardino MAD’s Engineer’s Report Fiscal Year 2021-22 The Fiscal Year 2021-22 Assessment Spread. Total Fiscal Year 2021-22 Budget $24,427.88 Assessment Units 151 Fiscal Year 2021-22 Collectible per Unit $161.76 The Maximum allowable Assessment Rate for Fiscal Year 2021-22 is $231.44 per unit. Due to the nature of landscape maintenance; it is anticipated that there will be future increases in assessments as contract, labor, water and energy costs are all subject to future increases. Annual increases may be increased without further notice or public hearing by a percentage equal to the increase in the Consumer Price Index (CPI) for all Urban Consumers in the Los Angeles-Riverside-Orange County area, published by the United States Department of Labor, Bureau of Labor Statistics over the previous year, or 5%, whichever is less. The CPI is typically used for maintenance districts. The rate varies from year to year, but in no event will an increase, if needed, exceed 5% without a majority approval of property owners in the District. 3. Assessment Diagrams Page | 5 City of San Bernardino MAD’s Engineer’s Report Fiscal Year 2021-22 A reduced copy of the Assessment Diagrams are filed herewith, are incorporated by reference in Appendix B herein, and made part of this Report. If any parcel submitted for collection is identified by the County Auditor-Controller to be an invalid parcel number for the current fiscal year, a corrected parcel number and/or new parcel number will be identified and resubmitted to the County Auditor/Controller. The assessment amount to be levied and collected for the resubmitted parcel or parcels shall be based on the method of apportionment and assessment rate approved in this Report. Therefore, if a single parcel has changed to multiple parcels, the assessment amount applied to each of the new parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment. Information identified on these maps was received from several sources including the owner/developer, City of San Bernardino, and the San Bernardino County Assessor’s Office. 4. Assessment Rolls Page | 6 City of San Bernardino MAD’s Engineer’s Report Fiscal Year 2021-22 The actual amount of the assessment for the Fiscal Year 2021-22 apportioned to each parcel as shown on the latest equalized roll at the County Assessor’s office are listed in Appendix A of this Report. The description of each lot or parcel is part of the records of the County Assessor of the County of San Bernardino and such records are, by reference, made part of this Report. APPENDIX A Assessment Rolls CC30 SP87 - AD 1025 Fiscal Year 2021-22 APN Levy APN Levy APN Levy 0261-551-01 $213.66 0261-551-14 $213.66 0261-551-27 $213.66 0261-551-02 $213.66 0261-551-15 $213.66 0261-551-28 $213.66 0261-551-03 $213.66 0261-551-16 $213.66 0261-551-29 $213.66 0261-551-04 $213.66 0261-551-17 $213.66 0261-551-30 $213.66 0261-551-05 $213.66 0261-551-18 $213.66 0261-551-31 $213.66 0261-551-06 $213.66 0261-551-19 $213.66 0261-551-32 $213.66 0261-551-07 $213.66 0261-551-20 $213.66 0261-551-33 $213.66 0261-551-08 $213.66 0261-551-21 $213.66 0261-551-34 $213.66 0261-551-09 $213.66 0261-551-22 $213.66 0261-551-35 $213.66 0261-551-10 $213.66 0261-551-23 $213.66 0261-551-36 $213.66 0261-551-11 $213.66 0261-551-24 $213.66 0261-551-37 $213.66 0261-551-12 $213.66 0261-551-25 $213.66 0261-551-38 $213.66 0261-551-13 $213.66 0261-551-26 $213.66 Totals Parcels 38 Levy $8,119.08 Assessment Roll Page 1 of 3 City of San Bernardino Engineer's Report CC30 SP89 - AD 1027 Fiscal Year 2021-22 APN Levy APN Levy APN Levy 0141-511-54 $161.76 0141-551-07 $161.76 0141-551-50 $161.76 0141-511-55 $161.76 0141-551-08 $161.76 0141-551-51 $161.76 0141-511-56 $161.76 0141-551-09 $161.76 0141-551-52 $161.76 0141-511-57 $161.76 0141-551-10 $161.76 0141-551-53 $161.76 0141-511-58 $161.76 0141-551-11 $161.76 0141-551-54 $161.76 0141-511-59 $161.76 0141-551-12 $161.76 0141-551-55 $161.76 0141-511-60 $161.76 0141-551-13 $161.76 0141-551-56 $161.76 0141-511-61 $161.76 0141-551-14 $161.76 0141-551-57 $161.76 0141-511-62 $161.76 0141-551-15 $161.76 0141-551-58 $161.76 0141-511-63 $161.76 0141-551-16 $161.76 0141-551-59 $161.76 0141-511-64 $161.76 0141-551-17 $161.76 0141-551-60 $161.76 0141-511-65 $161.76 0141-551-18 $161.76 0141-551-61 $161.76 0141-531-21 $161.76 0141-551-19 $161.76 0141-561-01 $161.76 0141-531-22 $161.76 0141-551-20 $161.76 0141-561-02 $161.76 0141-531-23 $161.76 0141-551-21 $161.76 0141-561-03 $161.76 0141-531-24 $161.76 0141-551-22 $161.76 0141-561-04 $161.76 0141-531-25 $161.76 0141-551-23 $161.76 0141-561-05 $161.76 0141-531-26 $161.76 0141-551-24 $161.76 0141-561-06 $161.76 0141-531-27 $161.76 0141-551-25 $161.76 0141-561-07 $161.76 0141-531-28 $161.76 0141-551-26 $161.76 0141-561-08 $161.76 0141-531-29 $161.76 0141-551-27 $161.76 0141-561-09 $161.76 0141-531-30 $161.76 0141-551-28 $161.76 0141-561-10 $161.76 0141-531-31 $161.76 0141-551-29 $161.76 0141-561-11 $161.76 0141-531-32 $161.76 0141-551-30 $161.76 0141-561-12 $161.76 0141-531-33 $161.76 0141-551-31 $161.76 0141-561-13 $161.76 0141-531-34 $161.76 0141-551-32 $161.76 0141-561-14 $161.76 0141-531-35 $161.76 0141-551-33 $161.76 0141-561-15 $161.76 0141-531-36 $161.76 0141-551-34 $161.76 0141-561-16 $161.76 0141-531-37 $161.76 0141-551-35 $161.76 0141-561-17 $161.76 0141-531-38 $161.76 0141-551-36 $161.76 0141-561-18 $161.76 0141-531-39 $161.76 0141-551-37 $161.76 0141-561-19 $161.76 0141-531-40 $161.76 0141-551-38 $161.76 0141-561-20 $161.76 0141-531-41 $161.76 0141-551-39 $161.76 0141-561-21 $161.76 0141-531-42 $161.76 0141-551-40 $161.76 0141-561-22 $161.76 0141-531-43 $161.76 0141-551-41 $161.76 0141-561-23 $161.76 0141-531-44 $161.76 0141-551-42 $161.76 0141-561-24 $161.76 0141-531-45 $161.76 0141-551-43 $161.76 0141-561-25 $161.76 0141-551-01 $161.76 0141-551-44 $161.76 0141-561-26 $161.76 0141-551-02 $161.76 0141-551-45 $161.76 0141-561-27 $161.76 0141-551-03 $161.76 0141-551-46 $161.76 0141-561-28 $161.76 0141-551-04 $161.76 0141-551-47 $161.76 0141-561-29 $161.76 0141-551-05 $161.76 0141-551-48 $161.76 0141-561-30 $161.76 0141-551-06 $161.76 0141-551-49 $161.76 0141-561-31 $161.76 Assessment Roll Page 2 of 3 City of San Bernardino Engineer's Report CC30 SP89 - AD 1027 Fiscal Year 2021-22 APN Levy APN Levy APN Levy Assessment Roll 0141-561-32 $161.76 0141-571-07 $161.76 0141-571-15 $161.76 0141-561-33 $161.76 0141-571-08 $161.76 0141-571-16 $161.76 0141-571-01 $161.76 0141-571-09 $161.76 0141-571-17 $161.76 0141-571-02 $161.76 0141-571-10 $161.76 0141-571-18 $161.76 0141-571-03 $161.76 0141-571-11 $161.76 0141-571-19 $161.76 0141-571-04 $161.76 0141-571-12 $161.76 0141-571-20 $161.76 0141-571-05 $161.76 0141-571-13 $161.76 0141-571-06 $161.76 0141-571-14 $161.76 Totals Parcels 151 Levy $24,425.76 Page 3 of 3 City of San Bernardino Engineer's Report APPENDIX B Assessment Diagrams IRVINGTON AVE R E D SKY AVE PALM AVEWASHINGTON ST C A BLE C R EEK CHANNEL APPALOOSA AVEESCENA STKENDALL DR VERDEMONT RANCH RD§¨¦215 0 100 20050FeetCITY OF SAN BERNARDINOASSESSMENT DIAGRAM MAINTENANCE ASSESSMENT DISTRICT NO. 1025 Ê Landscaping 18,1 50 sq. ft. YOUNGCTERINWAYWEIRRDWATERMAN AVEC A R O L WAY MELI N D A LNKIM BER LY CTMOLLYDRMANC H E S T E R LN ANDREW LNFOXCROTTWAYH E R I T AGELNCOMMERCI A L D R BEVERLY DR MELISSA WAYW A S H IN G TO N S TCARL PL0 200 400100FeetCITY OF SAN BERNARDINOASSESSMENT DIAGRAM MAINTENANCE ASSESSMENT DISTRICT NO. 1027 Ê Landscaping 99,749 sq. ft. APPENDIX C MAD District Cost Summary MAD No. 1025 FY 2021-22 Budget Direct Costs FY 2020-21 FY 2021-22 Maintenance of Ground Cover/Shrubs/Irrigation $4,696.61 $4,799.47 Maintenance of Trees/Irrigation $123.22 $125.92 Irrigation Costs (Water and Energy) $2,236.48 $2,285.46 Total Direct Costs $7,056.31 $7,210.84 Indirect Costs Assessment Engineer $359.86 $367.06 City Administration $804.53 $820.85 Auditor-Controller $11.40 $11.40 Total Indirect Costs $1,175.79 $1,199.31 Total Costs $8,232.10 $8,410.15 Collection/(Contribution) Operating Reserve $691.93 $816.43 Capital Replacement $0.00 $0.00 City Contribution $0.00 $0.00 General Benefit Contribution ($1,084.01) ($1,107.45) Total Adjustments ($392.08) ($291.02) Total Assessment $7,840.02 $8,119.13 Estimated through June 30 MAD No. 1027 FY 2021-22 Budget Direct Costs FY 2020-21 FY 2021-22 Maintenance of Ground Cover/Shrubs/Irrigation $15,981.02 $16,331.00 Maintenance of Trees/Irrigation $408.73 $417.68 Irrigation Costs (Water and Energy) $7,990.51 $8,165.50 Total Direct Costs $24,380.26 $24,914.19 Indirect Costs Assessment Engineer $1,548.96 $1,579.94 City Administration $1,943.29 $1,983.06 Auditor-Controller $45.30 $45.30 Total Indirect Costs $3,537.55 $3,608.30 Total Costs $27,917.81 $28,522.49 Collection/(Contribution) Operating Reserve $0.00 $0.00 Capital Replacement $0.00 $0.00 City Contribution ($1,598.70) ($1,304.48) General Benefit Contribution ($2,730.98) ($2,790.13) Total Adjustments ($4,329.68) ($4,094.61) Total Assessment $23,588.14 $24,427.88 Estimated through June 30