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HomeMy WebLinkAbout2007/05/22 Item 10 CITY COUNCIL AGENDA STATEMENT ITEM TITLE: 5/22/2007 Item~ RESOLUTION AUTHORIZING THE PREPARATION OF AN ENGINEER'S REPORT TO INITIATE THE PROPOSITION 218 BALLOT PROCESS TO CONSIDER INCREASING ASSESSMENTS FOR OPEN SPACE DISTRICTS (OSDS) 3, 7, 9, OSD 20 ZONES 2, 4, 7, OSD 23, AND EASTLAKE MAINTENANCE DISTRICT NO. 1 (ELMD NO.1) ZONES A AND D. SUBMITTED BY: RESOLUTION APPROVING AN AMENDMENT TO AN AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND NBS GOVERNMENT FINANCE GROUP, DBA NBS, FOR PROPOSITION 218 BALLOT SERVICES FOR CERTAIN OPEN SPACE DISTRICTS AND AUTHORIZING THE MAYOR TO EXECUTE THE AMENDMENT. CITY ENGINEER --::> '/ ~. DIRECTOR OF PUBLIC WO~PERATIONS if INTERIM CITY MANAGER Jf REVIEWED BY: 4/5THS VOTE: YES D NO ~ BACKGROUND The City administers and maintains thirty-six (36) Open Space Districts and associated zones. City Council previously approved the development of an effort regarding potential Open Space District levy increases to maintain levels of service. Tonight, the Council will consider approving initiating a Proposition 218 balloting process for Open Space Districts that staff recommends as being necessary to provide the required levels of service. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because it involves a ballot measure for potentially increasing the funding for existing activities in the Open Space Districts and does not involve any new activities, therefore, pursuant to Section l5060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review IS necessary. 10-1 OS/22/2007, Item /!} Page 2 of8 RECOMMENDA nON That City Council adopt the Resolutions: I) Authorizing the preparation of an Engineer's Report to initiate the Proposition 218 ballot process to consider increasing assessments for Open Space Districts (OSDs) 3, 7, 9, OSD 20 Zones 2, 4, 7, OSD 23, and Eastlake Maintenance District No.1 (ELMD No.1) Zones A and D; and, 2) Approving an amendment to an agreement between the City of Chula Vista and NBS Government Finance Group for Proposition 218 ballot services for certain Open Space Districts and authorizing the Mayor to execute said amendment. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION Open Space Maintenance Districts The City administers and maintains 24 Open Space Districts (OSD) that have been established over the last thirty years. Two of these Districts are further divided into individual zones, with Open Space District 20 consisting of nine zones, and Eastlake Maintenance District 1 consisting of five zones for a total of 14 individually administered and maintained zones within City Districts. Considered together, the City administers and maintains a total of 36 open space maintenance Districts/zones. For the purposes of this report, all future references to "Districts" shall be construed to include both Districts and individual zones within Districts. The OSDs provide a financing mechanism to maintain the public open space areas associated with each particular development where that special benefit is enjoyed by homeowner properties and where the desirability or value of the property is improved due to the improvements. Although these Districts were originally formed under the "1972 Landscaping and Lighting Act," the passage of Proposition 218 in 1996 imposed additional constraints and restrictions for any changes to these Districts. Prior to the passage of Proposition 218, at the direction of the City Council, the City required that those developments installing certain facilities within the public right-of-way be incorporated within new OSDs or annexed to an existing District. This requirement was exercised as a condition of approval for development entitlements. Subject facilities included landscaping within the public right-of-way; and installation of park, recreational, or open space improvements. Following the passage of Proposition 218, the Council modified this policy to require the formation of new, or annexation to existing, Community Facilities Districts under the Mello Roos Act of 1982. Each year, the City Council approves an Engineer's Report for each of the Districts. These annual reports allow the Council to view the history of the OSDs and consider budget and levy information for the upcoming fiscal year. The reports include information regarding: . The proposed budgets; . Funds remaining in the account; 10-2 OS/22/2007, Item /0 Page 3 0[8 . The proposed assessment--the maximum allowable assessment based upon pnor year assessment plus an inflation factor per the Municipal Code; . The collectible--the actual per Equivalent Dwelling Unit (EDU) amount to be assessed in order to provide sufficient funds for the following fiscal year's maintenance requirements. Services Provided In general, the facilities and items to be maintained by the OSDs consist of the following: 1 Irrigation 12. Pedestrian light maintenance 2. Trail maintenance 13. Removal of noxious plant materials 3 Fertilization 14. Signage within trails/canyons 4. Public walkway cleaning 15. Pruning of trees and shrubs 5 Aeritication 16. Replacement of dead or diseased plant material 6 Low flow and brow channel maintenance 17. Repair of irrigation equipment 7. Pest control 18. Irrigation equipment upgrades 8. Weed abatement 19. Brush clearance 9. Insect infestation control 20. Encroachment trims !O. Pond equipment and maintenance 21 Fencing maintenance 11 Removal of weeds, trash and litter Proposition 218 On November 5, 1996, Proposition 218 - the "Right to Vote on Taxes Act" was approved by a majority of voters in a general election and took effect on July 1, 1997. This proposition severely impacted the formation of OSDs by the "1972 Landscaping & Lighting Act." This impact stemmed from the requirement that the City must show that parcels to be assessed received a "special benefit." In addition, all future increases in the amount of the assessment require the approval by the property owners via a ballot procedure/majority protest proceeding. The only exception to this rule is the allowance for the application of an annual inflation formula, if approved by property owners during the formation of the District. This approach was adopted by the City, and is discussed in the "Assessments & Collectibles" section below. The passage of Proposition 218 added an additional layer to the procedural requirements of the majority protest provisions related to assessments. To disapprove an assessment, previous law required a majority protest of property owners owning more than 50% of the assessable area, but did not require an election. Proposition 218 requires that the agency mail a ballot to each property owner of record. Then, when the ballots are counted, the determination of majority protest is based on the number of voters actually submitting ballots. In addition, Proposition 218 removed the ability of the legislative body to override a majority protest. The specific requirements of a Proposition 218 ballot procedure are discussed later in this report. 10-3 OS/22/2007, Item 10 Page 4 of8 Assessments & Collectibles The City of Chula Vista Municipal Code makes a distinction between the assessment and the amount that the City may collect against the assessment (i.e., the collectible). The "assessment" amount represents the maximum allowable assessment that can be levied and primarily allows for the application of an inflationary factor. The "collectible" is the amount actually collected from property owners via the County of San Diego's ad valorem tax roll. Any collectible set at or below the assessment amount is not subject to a vote or a majority protest proceeding. Each year, the prior year's maximum assessment amount is adjusted by an inflation factor, pursuant to the Municipal Code. This inflation factor is based upon the lower of two separate, published inflation factors: the San Diego Metropolitan Consumer Price Index (CPI), and the Governor's California 4th Quarter per Capita Personal Income Index. The collectible amount authorized by Council each year is based on the District's projected budget, reserve status, special savings and fund balances, earned interest, and prior year's actual expenditures. Reserves While the City has often been able to identify savings from prior years to supplement collections, it is important to note that staff also strives to maintain at least a 50% reserve. The Municipal Code allows reserves between 50% and 100%. A minimum of 50% reserve is critical to provide the funds to pay for costs during the first six months of the fiscal year, before the collectibles are received from the first installment of the property tax bill, and also to mitigate for delinquencies and any emergency service requirements. Reserves in excess of 50% are used, in part, to maintain as stable a collectible as possible while retaining sufficient funds to offset future anticipated increases and to address maintenance emergencies. Operational efficiencies and reserves may also allow the City to return excess funds to property owners in the form of a lower collectible. The Need for a Levy Increase Each year, the City Council approves both the maximum assessment and collectible rates. Beginning with the development of the FY 2006 budget, staff reported concerns regarding projected revenue shortfalls in some of the Districts, which would require further analysis and monitoring. Unfortunately the trend has continued and service level reductions will be necessary unless an increase is made to the levies of nine of the 36 Districts/zones. On July 18, 2006, Resolution 2006-214 was approved by the City Council supporting the development of a public outreach and education effort related to levels of service and potential expansions of services for brush management efforts to enhance fire safety. Since that time, it has been determined that a comprehensive brush management effort is potentially much more expansive than what was previously contemplated and is now, therefore, being pursued as a separate endeavor. Since that time, a team consisting of representatives from Planning and Building (Environmental), Public Works and Engineering performed a comprehensive review of the service levels and resource requirements for the City's OSDs. As noted above, Proposition 218 limited the maximum assessment amount to the lesser of the two approved inflationary indexes. In FY 2003, the lesser index experienced a negative 3.01 10-4 OS/22/2007, Item / () Page 5 of 8 percent growth factor and then failed to keep pace with inflation in FY 2004 (1.5 percent allowance) and in FY 2005 (2.2 percent allowance). As a result, maximum assessment revenues failed to meet the approved and necessary expenditure budgets in several Districts. In some instances, reserves were sufficient and/or operational reductions were implemented to slow this trend. Unfortunately, several Districts have been unable to recover. The Districts with expenditure budgets that have exceeded and are projected to continue exceeding the maximum collectible are shown in the table below. These Districts represent nine of the total 36 Districts/zones administered and maintained by the City and include approximately 6,986 parcels. Attachment I shows the boundary maps of the subject OSDs. Table 1: Districts Recommended for Balloting OSD / Zone District Name EDUs District Location (FY2007) OSD 3 Rancho Robinhood Units I 127 South of Allen School Lane &2 OSD7 Zenith Units 2, 3, & 4 104 North & south of Palomar, east ofl-805 OSD9 EI Rancho Del Rev 384 Paseo del Rev, north ofTele~ranh Canvon Road OSD 20/ Zone 2 Rice Canyon Trail Area 3959 Trail area between Norfh & Soufh Rancho Del Rey Parkwavs OSD 20/ Zone 4 SPA I Phase 1 (Business 2602 North of East H Street, east of Del Rey Boulevard Center) OSD 20/ Zone 7 SPA3 1177 Soufh of East H Street, east of Del Rev Boulevard OSD 23 Otav Rio Business Park 90 Coors/Knotts Soak City area ELMDl/ Zone A Eastlake ! 8430 Eastlake !, Eastlake Greens, Salt Creek !, OTC, Tele~ranh Canyon Channel ELMD1/ Zone D Salt Creek! 423 South of Proctor Valley Road and West of Mount MiQuel Road Several allowable services have not been performed at optimal levels within these Districts due to resource constraints. The increase in assessments would allow, for example, the City to conduct an adequate maintenance and annual testing program of irrigation backflow assemblies within these Districts. This would help the City remain in compliance with California Title 17 Code of Regulations regarding safe water supply. As part of this review, the introduction of additional services was also considered, including an increase in Fuel Modification Zones (FMZ) for fire protection and/or implementation of the Multiple Species Conservation Program (MSCP). The analysis indicated that a significant dollar increase per dwelling unit would occur if extra services such as FMZ and MSCP were added. Due to the significant cost increases resulting from these enhanced services, FMZ and MSCP services are not recommended for inclusion in this balloting process. Two different types of concerns arise with the Districts recommended for potential levy increases. In some cases, the Districts are already operating at a deficit level and reserves have been exhausted. These are Districts where the maximum assessment revenues have consistently failed to meet the approved and necessary expenditure budgets developed to fulfill service levels. In other cases, the District's reserves are below the Municipal Code allowance because they have been subsidizing shortfalls and thus are projected to be exhausted in the near future. 10-5 OS/22/2007, Item / [) Page 6 of8 The projected assessment shortfalls, reserve levels and potential increased maximum assessment for the impacted Districts are detailed in the table below. It is important to note that even though the maximum assessment may be increased, the actual levy imposed may be for any amount less than the maximum assessment. Therefore, should balloting support increasing the allowable maximum assessment, the actual amount levied would be reviewed each year and adjusted gradually as necessary to readjust for service level requirements and to re-establish reserves. OSD/Zone FY2007 FY2008 Shortfall Projected FY2007 Potential Max Assess Requirement Reserve Levy/EDU FY2008 Revenue Levv/EDU OSD 3 $ 44,818 $ 89,462 -$ 18,394 -12.00% $352.00 $510.00 OSD7 $ 13,059 $ 23,466 -$ 10,407 20.00% $125.00 $174.00 OSD 9 $ 62,427 $ 88,055 -$ 25,628 17.00% $162.00 $230.00 OSD 20 /Zone 2 $ 17,976 $ 64,482 -$ 46,506 -48.00% $ 4.54 $ 17.00 OSD 20/ Zone 4 $ 62,720 $134,594 -$ 71,874 19.00% $ 24.00 $ 52.00 OSD 20/ Zone 7 $202,985 $398,347 -$195,362 24.00% $172.00 $339.00 OSD 23 $ 48,063 $ 67,907 -$ 19,844 9.00% $533.00 $760.00 ELMD 1/ Zone A $108,494 $286,659 -$178,165 0.67% $ 12.30 $ 34.00 ELMD 1/ Zone D $ 94,185 $128,320 -$ 34,135 42.00% $222.00 $303.00 Proposition 218 Balloting A Proposition 218 ballot process consists of the following steps: 1. Resolution of Initiation (optional) 2. Preparation of an Engineer's Report and Resolution of Intention 3. Distribution of notice and ballot to property owners 4. Public Hearing and ballot tabulation Tonight, a Resolution of Initiation is before the City Council. Although this step is not included by all agencies undertaking a Proposition 218 process, we wanted the Council and the community to be aware of the situation with the OSDs and the process necessary to reconsider levy amounts for the impacted Districts. Should the Resolution ofInitiation be approved tonight, an informational flyer explaining the circumstances and next steps will be mailed to all property owners within the impacted Districts in advance of the potential balloting process. Next, an Engineer's Report must be prepared that appropriately and accurately defines the District's annual maintenance costs. This report also details the proposed annual assessment per Equivalent Dwelling Unit (EDU). Once the Engineer's Report has been prepared this is brought back to the City Council with a Resolution of Intention. If approved, notices and ballots are sent to all property owners (not voters) in each impacted District. At least 45 days later, a public hearing is held by the public agency to tabulate the ballots received. If, at the public hearing, a majority protest exists, the public agency shall not impose an assessment increase. A majority protest exists, if, upon the conclusion of the public hearing, ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessment. In tabulating the ballots, the ballots shall be weighted according to the proportional financial obligation of the affected property. Only those property owners submitting ballots are included in the tabulation. As a 10-6 OS/22/2007, Item /0 Page 7 of 8 result, it is possible that only a relative few interested voters submitting protests can defeat the assessment, even if the majority of eligible voters favor the assessment but do not return their ballot. The City's current special tax districts administration consultant NBS, is prepared to conduct the entire balloting process. Allowance for this work is included under their existing contract, defined as "Optional Items" approved by Council Resolution 2005-149. However, this expansion of services will require a contract amendment and the expenditure of up to $75,000 from the Engineering Department's General Fund budget. The Department is prepared to reduce expenditures in other areas in order to provide the funding necessary for this service. These funds can be recovered through the levy process should the ballot process be successful; however, that option will be considered later in the process. It is important to note that the County Assessor's Office requires all levy information to be filed by August 10 each year to be included on the property tax bills. Meeting this schedule is critical so that the City does not incur extensive additional costs to hand bill in the event the County's levy deadline is missed. The upcoming timeline requires that staff return to Council with the proposed Resolution ofIntention on June 5, 2007. Allowing for the 45-day balloting process, the public hearing/ballot count would occur at the July 24, 2007 Council meeting so that the County's August 10 deadline can be met. In the meantime, staff will return to Council sometime later in June with the standard annual levy process. This will allow staff to ensure that the current allowable levy is ready to be filed with the County Assessors' Office so that at least some level of service is provided in the impacted Districts should the balloting process fail and that uninterrupted service can continue in the other (unaffected) Districts. Reduction of Services The City Council could determine at this point to reduce services in the nine impacted Districts rather than proceeding with the Proposition 218 balloting process; however, this is not recommended. It is important to understand the potential impacts of a reduction of services should the balloting process be unsuccessful. This would result in the reduction of certain landscape and maintenance tasks, including but not limited to: tree trimming, fertilization, mowing of turf, replacement of aging irrigation equipment, and contractual maintenance services within these Districts. Most of the effect would be aesthetic, but the elimination of irrigation on slopes, aside from aesthetics, would result in loss of plant material as these selected plants need to be irrigated permanently to control erosion. The areas would also become bare as dead plant material on the slopes is removed. The fuel load would increase as plant material begins dying. This could result in an increase in the risk and seriousness of a fire. Please see Attachment 3 for a more detailed description of the potential impacts associated with reductions in maintenance services. Should a reduction of services be chosen rather than the balloting process or become necessary due to a failed vote, there are two key points to consider. First, the existing contractor is under no obligation to honor a downgraded contract or to hold their current prices for downgraded 10-7 OS/22/2007, Item / D Page 8 of8 maintenance. Secondly, a reduction of services may affect the aesthetics of entry monument areas, as well as medians and parkways along major scenic corridors and City gateways. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found a conflict exists, in that Council Member Steve Castaneda has property holdings within 500 feet of the boundaries of one of the Open Space Districts (OSD 20) which is the subject of this action. FISCAL IMP ACT As noted above, the Department does have a contract in place that allows a current service provider to support this effort; however, the Proposition 218 balloting process requirements do constitute an expansion of services necessitating a contract amendment and the expenditure of up to $75,000 from the Engineering Department's General Fund budget. The Department is prepared to reduce expenditures in other areas in order to provide the funding necessary for this service. These funds can be recovered through the levy process should the ballot process be successful; however, that option will be considered later in the process. Attachments: 1. Maps of Open Space Districts 2. NBS Contract Amendment 3. Impact of Reduced Services J :\EngineerIAGENDA ICAS200710S-22-07\CAS for OSD Deficit Districts.doc 10-8 ATTACHMENT 1 I I J I \ ( \ \ , " -' ......-...- " ------.. " \ ~"", ''', \ ", , " \ ' \ " , ~.. "- ,.,-4\ \ 'tj-ib" .... "- !....J \ ....' '" " \ ..........-- '....... / \ .,........--...- -------". "....... s~f!;ftJ'C-";;<\. ....--- \ ~St ....--- t 1- ....-_.... 1- /-- f ....--"'"...____1 ~ , ~ 1 " ~ " i ~....--......, , , , , , , /- I \ I I , I I , I I I , --__.;;.;.;.;..........1 ~ '~ ;; " -'~~~" Deficit Open Space District: City of Chula Vista Open Space District 3- Rancho Robinhood Units 1 and 2 DISTRICT: OSD 3 - Rancho Robinhood Resolution of Formation No.: 1973 - 7089 (November 20, 1973) Description of Facilities I Services: To pay costs of maintaining natural open space, green belt and slopes along major and collector roads, including the maintenance of all trees, shrubs, plants, etc., planted or placed within said open space area. The maintenance consists in general of the following: A) Irrigation B) Fertilization C) Removal of weeds, trash and litter D) Pruning of trees and shrubs E) Replacement of dead or diseased trees and shrubs F) Repair of equipment and facilities G) Weed abatement Services Annual tree trimmings . Trees are laced or shaped . Watering of trees . Fertilization of trees/shrubs/groundcover . Replacement of Equipment & Plants . Sprinkler Replacement . Irrigated erosion control slopes . Contractual Services 10-9 w , " 1 t .~ " a /\ / \ // \ ///'\.,\ / \ / \ / \ / \ / \ / ~,.,,~ \ / I / I / I \ \ \\ "~O,, _J \ --~~ \ %...-... \ ~ \ , \, \ \ \ \ \ ~ \ \ \ \ \ \ \ 1 \ I \ \ ~, I ~~ \----- ~. fti ..u~~~:_ Deficit Open Space District: City of Chula Vista Open Space District 7. Zenith Units 2. 3 and 4 DISTRICT: OSD 7 - Zenith II, III, and IV Subdivision Resolution of Formation No.: 1976-8357 (October 12,1976) Description of Facilities I Services: To pay costs of maintainin9 natural open space, green belt and slopes along major and collector roads, including the maintenance of all trees, shrubs, plants, etc., planted or placed within said open space area. The proposed maintenance consists in general of the following: A) Irrigation B) Fertilization C) Removal of weeds, trash and litter D) Pruning of trees and shrubs E) Replacement of dead or diseased trees and shrubs F) Repair of equipment and facilities G) Weed abatement Services . Annual tree trimmings . Trees are laced or shaped Watering of trees Fertilization of trees/shrubs/groundcover . Replacement of Equipment & Plants . Sprinkler Replacement . Contractual Services 10-10 .,'''''''''1'0 <:>-,,,- ~ t......................... ~~~ ~--- , I , , 1,c ~o' '\., .;>>o'Ji>'-"'..... ~Oq". ... .- '... , \ \ \ \ \ \ "\ \ o \ , ~, , , , , ,...., , , ~< ", -~-- '.......... ~~ , 7 \\~~L___-J ~ ~ , , \ \ \ \ \ , \ \ , , , ~~~ \ "t ...-, \----- \ , , , \ \ \ \ m.~~~_.~"'" <(i,. ~\ ~C,,~ " , ~ . 1 i " " .. , _~d~,,)< ~ ~ .,ft" Deficit Open Space District: City of Chula Vista Open Space District 9- EI Rancho del Rey DISTRICT: OSD 9 - Hilltop Vista Subdivision Resolution of Formation No.: 1977-8824 (September 20,1977) +- Actually Resolution of Intention Description of Facilities i Services: To pay costs of maintaining natural open space, green belt and slopes along major and collector roads, including the maintenance of all trees, shrubs, plants, etc., planted or placed within said open space area. A) The proposed maintenance consists in general of the following: A) Irrigation B) Fertilization C) Removal of weeds, trash and litter D) Pruning of trees and shrubs E) Replacement of dead or diseased trees and shrubs F) Repair of equipment and facilities G) Weed abatement Services . Annual tree trimmings . Trees are laced or shaped Watering of trees . Fertilization of trees/shrubs/groundcover . Mowing of turf . Replacement of Equipment & Plants . Sprinkler Replacement . Irrigated erosion control slopes . Contractual Services 10-11 o i! ,}i"". City of Chula Vista Open Space District 20- Rancho del Rey DISTRICT: OSD 20 - Rancho Del Rey, Zone 2, 4, 7 Resolution of Formation No.: 1989-15419(December 5,1989) Descriotion of Facilities I Services: "Maintain" or "maintenance" means the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including: 1 Repair, removal, or replacement of all or any part of any improvement. 2 Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury. 3 The removal of trimmings, rubbish, debris, and other solid waste. 4 Providing administration for the maintenance of improvements. 5 Maintenance will be provided as set forth by area description below and as noted on the approved Landscape Plans for the Ranch Del Rey planned community: Area NO.1 - Areas containing permanent irrigation systems planted in ground cover, shrubs and trees shall be kept weed free as required by City Parks and Recreation Director. Any area not fully covered with planned ground covers are to be replanted and grown to fully cover area during the normal growing season. Area No.2 - Lawn area with automatic irrigation systems. Weeding shall be as necessary to create a well manicured appearance. Area No. 3 - Areas containing permanent irrigation systems initially planted with hydroseed mix and shrubs and trees shall be kept weed free as required by Parks and Recreation Director. The intent is to maintain healthy vegetation for hill holding. Area NO.4 - Areas containing permanent or temporary irrigation systems in natural open space lands and slopes with indigenous plant growth. Weed abatement in these areas as directed by Parks and Recreation Director, not to exceed two times per year, may consist of cutting back to 6" high. Area NO.5 - Two times per year, areas of non-irrigated open space shall be cleaned of debris including but not limited to the following: bottles, cans, paper, cardboard, or metallic items and noxious plant materials such as tumbleweeds. 10-12 The facilities and items of maintenance included within the District by zone designation are as follows: Zone 2 Maintain landscaping, and irrigation system areas associated with the Rice Canyon Open Space area as noted. Area 4 and 5 category maintenance will be provided to the canyon area to continue the natural landscape scheme. The parking area, so noted on the approved landscape plans, will be maintained to area 1 and 2 categories. Zone 4 Maintain landscaping and irrigation system improvements in designated open space easements adjacent to streets in the Rancho Del Rey Business Park SPA I, Phase 1. Area 1, 3 and 5 category maintenance, monumentation maintenance and replacement cost will be provided. Zone 7 SPA III and those portions of SPA I south of East "H" Street landscape improvements, are to be incorporated into the maintenance District at such time when the improvements are installed and maintenance is turned over to the City of Chula Vista. Included within the SPA III improvements will be the maintenance of the open space easements and areas within the public right-of-way of Telegraph Canyon Road, which abut SPA III. Zone 2 Services Annual tree trimmings . Trees are laced or shaped . Watering of trees . Fertilization of trees/shrubs/groundcover . Mowing of turf . Sprinkler Replacement . Contractual Services Zone 4 Services . Annual tree trimmings . Trees are laced or shaped Fertilization of trees/shrubs/groundcover . Mowing of turf . Replacement of Equipment & Plants . Sprinkler Replacement . Irrigated erosion control slopes . Contractual Services Zone 7 Services . Annual tree trimmings . Trees are laced or shaped Fertilization of trees/shrubs/ground cover . Mowing of turf . Replacement of Equipment & Plants . Sprinkler Replacement . Irrigated erosion control slopes . Contractual Services 10-13 f-------------------------- ... :-~----------~\ , , , \ \ :j" \ 1 \ \ g \ \ , \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ , \ \ \ \ , \ ~ .i::J "~c.. City of Chula Vista Open Space District 23- Otay Ria Business Park DISTRICT: OSD 23 - Otay Rio Business Park Resolution of Formation No.: 16810 (September 15,1992) DescriDtion of Facilities I Services: The open space areas to be maintained are the slopes adjacent to Otay Valley Road designated as lots A, Band C on Map 12458 (Unit 1) and the landscaped street medians within that unit. The improvements to be maintained are the landscape planting, perimeter walls and irrigation facilities within the open space lots and street medians and additional open space areas and corresponding improvements will be incorporated in the district as additional phases are developed. Services . Fertilization of trees/shrubs/groundcover . Replacement of Equipment & Plants . Sprinkler Replacement . Contractuai Services 10-14 i ~... I , -.I ...., I , I \ \ ,..-" I I I ' I I I I I' 1\ '\ 1\ 'I IJ ~ ~ ~. z 3 , ~ . " 1 ~ ~ ~ ~ " D _~f~" Deficit Open Space District: City of Chula Vista Open Space District 101- Eastlake Maint District No1 DISTRICT: Eastlake Maintenance District No.1 (ELMO #1) Resolution of Formation No.: 1986-12335 (January 22, 1986) Description of Facilities i Services: "Maintain" or "maintenance" means the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including: 1 Repair, removal, or replacement of all or any part of any Improvement. 2 Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury. 3 The removal of trimmings, rubbish, debris, and other solid waste. 4 Providing administration for the maintenance of Improvements. "Improvement" means one or any combination of the following: 1 The installation or planting of landscaping. 2 The installation or construction of statuary, fountains, and other ornamental structures and facilities. 3 The installation of construction of supplemental public lighting facilities. 4 The installation or construction of any facilities which are appurtenant to any of the foregoing or which are necessary or convenient for the maintenance or servicing therof, including grading, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities. 5 The maintenance or servicing, or both, of any of the foregoing. The facilities and items of maintenance included within the District are as follows: 10-15 Zone A. Zone D. Zone A Services Maintain landscaping and irrigation system improvements in designated public street areas. Designated streets where median maintenance will be required include: . Otay Lakes Road - Rutgers Avenue east to 500 feet east of Salt Creek . Eastlake Parkway - SR-125 to Orange Avenue . East "H" Street- 5000 feet southwest of SR-125 to 3000 feet northeast of SR-125 . Eastlake Drive - Eastlake I Hills and Shores . Hunte Parkway - Otay Lakes Road to Orange Avenue . Orange Avenue - EastLake Parkway to Wueste Road . Eastlake Parkway - within "Greens" SPA Boundary . Clubhouse Drive - within "Greens" SPA Boundary . Greengate Drive - within "Greens" SPA Boundary . Greenview Drive - within "Greens" SPA Boundary . Masters Ridge Road' - within "Greens" SPA Boundary . Silverado - within "Greens" SPA Boundary . Golfcrest Drive - within "Greens" SPA Boundary 1. Maintain landscaping including grass, ground cover, shrubs, trees, and other ornamental vegetation improvements in designated public street median areas. 2. Maintain irrigation water supply and sprinkler system improvements in designated public street median areas. Maintenance to include necessary repairs to the water supply and sprinkler system. Maintain proposed open space lots. Maintenance will conform to approved landscape plans for subject area. Area will include: . Dedicated open space lots owned in fee by the City of Chula Vista, including slopes adjacent to SR-125, the community park site and High School Site, all within the "Greens" SPA Boundary. . Annual tree trimmings . Trees are laced or shaped . Fertilization of trees/shrubs/groundcover . Mowing of turf . Replacement of Equipment & Plants . Sprinkler Replacement . Irrigated erosion control Zone D Services . Fertilization of trees/shrubs/groundcover . Replacement of Equipment & Plants . Sprinkler Replacement . Irrigated erosion control slopes j:\engineer\Open Space Districts\OSD Report to Council\OSD Exhibits verso 1 10-16 ATTACHMENT ~ FIRST AMENDMENT TO AGREEMENT BETWEEN THE CITY OF CHULA VISTA and NIlS GOVERNMENT FINANCE GROUP, dba NIlS RECITALS WHEREAS, the City of Chula Vista ("City") and NBS Government Finance Group, dba NBS ("Consultant") entered into an agreement dated May 10, 2005 where Consultant agreed to assist the City with various tasks related to Assessment Districts, Mello-Roos Community Facilities Districts, and Open Space Districts; and WHEREAS, the City administers and maintains thirty-six Open Space Districts and associated zones; and WHEREAS, certain Open Space Districts are operating at a deficit level and reserves have been exhausted and other District's reserves are below the Municipal Code allowance because they have been subsidizing shortfalls and are projected to be exhausted in the near luture; and WHEREAS, the City proposes to conduct a Proposition 218 ballot process to see if there is support for increasing the allowable maximum assessment in these Districts; NOW THEREFORE, the Agency and Consultant agree as follows: AGREEMENT 1. Exhibit A, Section 8, Scope of Work and Schedule, Subsection A. VIl1.a, Detailed Scope of Work, Optional Items, Proposition 218 Compliance, is deleted in its entirety and replaced with the following: a. Proposition 218 Compliance 10-17 Consultant shall provide Proposition 218 Compliance services for the following Open Space Districts: OSD# District Name 3 Rancho Robinhood Units I & 2 7 Zenith Units 2, 3, 4 9 EI Rancho Del Rey 20Zn2 Rice Canyon Trail Area 20 Zn 4 SPA I Phase I (Business Center) 20 Zn 7 SPA 3 23 Otay Rio Business Park ELJ\1D Zn A Eastlake I ELJ\1D Zn D Salt Creek I Proiect Schedule. NBS will communicate with City staff, legal counsel and other interested parties to: . Establish lines of communication. . Clarify the specific project goals, components and criteria that will meet City preference. . Identify and resolve any special circumstances that may be involved in the update/administration of the districts. . Develop project schedules to meet legal requirements and provide for effective interfacing of all involved parties. . Establish meeting points consistent with schedule to achieve proj ect milestones. . Establish and coordinate with City staff a schedule to assure completion of necessary actions and compliance with statutes. Parcel Database. NBS will establish models and prepare a district parcel database for assessor parcels as currently shovm on the County assessor's rolls. The database will include land divisions, ovmership and mailing information, and parcel information relevant to the spread of the assessments. Budget Develooment. NBS will assist City staff in order to establish an annual district budget for the projected costs of maintaining all future improvements. Cost categories may include, but not be limited to, landscape and lighting maintenance, capital improvement, incidental costs (engineering, legal, city administration), operating reserves, capital improvement reserves, and delinquency reserves. Agencv Review. NBS will communicate with City staff to address issues pertaining to costs, improvements, statute requirements and benefit received. We will provide analysis of proposed assessments, as well as contributions to be made from the City to the districts. We will review mailed and published legal notices, 2 10-18 establish dates for public meeting and public hearing, if required, verify scheduliog, City approach and district requirements, and other issues related to the successful operation of the districts. Preliminary Engineer's Report. NBS will prepare, submit and review with City staff a Preliminary Engineer's Report, iocluding description of improvements, plans and speciJications, cost estimate, assessment criteria and assessment roll. Legal Notices and Ballots. NBS will prepare legal notices and ballots to be mailed, as required, for compliance with the 1972 Act and Proposition 218. Ballot Tabulation. NBS will tabulate the ballots returned and report the results upon completion. Meeting Attendance. NBS will attend two district-related Council meetings, including the Public Meeting and the Public Hearing, as requested by the City. Final Engineer's Reoort. NBS will prepare, submit and review with City staff a Final Engineer's Report, iocluding description of improvements, plans and specifications, cost estimate, assessment criteria, assessment roll and diagram as approved by the Council. Toll-Free Phone Number. NBS will provide a toll-free phone number for use by the City and all property owners. Our staff will be available to answer questions regarding the formation of the district and ongoing collection of assessments. Exclusion. Assessment Diagram to be provided by the City. NBS will coordinate with the Public Works Department and will provide guidance on its requirements for formatting, titling and certmcations. 2. Exhibit A, Section II, Compensation, Subsection D, Optional Services, is amended by adding the following after the sentence "The City may choose which method (negotiated or fixed-fee or hourly).": 1972 Act Assessment Increase Services. 1972 Act Assessment Increase (all nine districts/zones) = $57,190 Estimated Exoenses. . Information mailer to property owners, siogle page tri-fold (iocluding printing and postage): $l.OO/Parcel x 7,000 Parcels = $7,000.00 . Notice of Public Hearing and Protest Ballot (iocluding printing and postage) $1.50/Parcel x 7,000 Parcels = $10,500.00 3 10-19 . Notice of duplicate ballots to a single parcel, 3x5 card (including printing and postage) $0.50iParcel x 525 Parcels = $262.50 . Total Printing and mailing estimated expenses = $17,762.50 . All expenses not to exceed $20,000 All other terms of the Agreement as modified by this First Amendment to the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the City and Consultant have executed this First Amendment to the Agreement indicating that they have read and understood the provisions of the First Amendment, and indicate their full and complete consent to its terms. Attest: City of Chula Vista By: Susan Bigelow Cheryl Cox, Mayor Approved as to form: NBS Government Finance Group, dba NBS Ann Moore, City Attomey ~ ~ ~~-- By: . ke Rentner, President Exhibit List to First Amendment: (X) Agreement dated May 10, 2005 4 10-20 Attachment 3 Impact of Reduced Services The following is a summary of the anticipated impacts if it is necessary to reduce levels of service in certain Open Space Districts. The following districts have no tree trims as part of their contract resulting in no savings- D23/Palm Island & Eastlake Zone D. The following districts have no turf to mow as part of their contract resulting in no savings- D3, D7, D23/Palm Island & Eastlake Zone D. The following districts have no irrigated slopes to turn off as part of their contract resulting in no savings- D7, D20 Zone 2 & D23/Palm Island. The following districts have additional water savings generated by turning off irrigated slopes- D3, D9, D20 Zone 4, D20 Zone 7, ~ Eastlake Zones A & D. o I '" ~ The following districts had to have their water budget decreased in fit within the budget- D20 Zone 2 & D23/Palm Island. Applying less water may result in stressed plant material. The following districts had no reduction in Contractual Services- D14, Eastlake Zones A & D. This was made possible through adequate savings in other categories. Maintenance will be performed within the districts as indicated below: D3 Twice per month D7 Once every 3cd week D9 Twice per month D20 Zone 2 Once every 6th week D20 Zone 4 Twice per month D20 Zone 7 One crew I x week D23/Palm Island Twice per month Eastlake Zone A Unchanged Page I of3 Attachment 3 Eastlake Zone 0 Unchanged Reduction in the Following Services Impact Annual trce trimmings reduced Will take more time to trim trees within the district. Untrimmed tree branches may break resulting in property damage. Trees will not be laced or shaped resulting in undesired horticultural growth. Watering of trees will decrease resulting in increased stress levels. This will cause trees to be more susceptible to infestation, which could lead to premature death of trees. Annual Fertilization will be decreased Plants and trees require 17 elements for nOffilal growth. Some are found in air and water, while others are absorbed from the soil. Fertilizers provide nutrients that plants and trees use in relatively large amounts as well as trace elements. Reduction in fertilization will result in decrease in health, flower production and foliage growth, which will ultimately result in loss of plant material. There will also be an increase in chlorosis, resulting in discoloration of plant material. ~ C) I "" "" Mowing Mowing of turf will be reduced from weekly to twice per month. This will result in turf being visibly taller and not as aesthetically pleasing. Brown spots may occur, as sprinklers cannot adequately iITigate area due to blockage from plant material. Replacement of Equipment & Plants Ageing iITigation controllers will not be replaced in a timely manner. This may result in loss of plant material. Replanting projects to replace bare areas within the parkways, medians and slopes will not occur. Sprinkler Replacement Ageing irrigation equipment will not be replaced in a timely manner. Result will be loss of plants & trees. Page 2 of3 ~ Cl I N W Attachment 3 Turn offIrrigated Slopes This will result in loss of plant material as these selected plants need to be irrigated pell11anently to control erosion. The areas will also become bare as dead plant material on the slopes is removed. The fuel load will increase as plant material begins dying. This will result in an increase in the risk and seriousness of a fire. Contractual Services Reduced Overall reduction in the amount of maintenance performed within the area. Results will include the following: reduction in contractors staff/man hours; increase in litter and debris within the parkways/medians/gutters; application of pre and post emergent weed killer will be eliminated; weeds will become pervasive throughout the landscape as no chemicals will be applied to combat weed growth; increase in disease & infestations as contractors will have less staff to inspect plants & trees; increase in pests such as bees & gophers; increase in time taken to perform brush management; contractor's response time to address homeowners' concerns will be increased due to the reduction in their staff. Page 3 of3 RESOLUTION NO. 2007- RESOLUTION AUTHORIZING THE PREPARATION OF AN ENGINEER'S REPORT TO INITIATE THE PROPOSITION 218 BALLOT PROCESS TO CONSIDER INCREASING ASSESSMENTS FOR OPEN SPACE DISTRICTS (OSDsl 3, 7, 9, OSD 20 ZONES 2, 4, 7, OSD 23, AND EAST LAKE MAINTENANCE DISTRICT NO. 1 (ELMO NO.1) ZONES A AND D. WHEREAS, the City administers and maintains thirty-six (36) Open Space Districts 10SDs) and associated zones; and WHEREAS, these OS Os provide a financing mechanism to maintain the public open space areas associated with each particLtlar development and were fonned under the 1972 Landscaping and Lighting Act found in Streets and Highways Code sections 22500 el. sCif.; Clnd WHEREAS, OSDs 3, 7, 9, OSD 20 Zones 2, 4, 7, OSD 23 and Eastlake Maintenance District NO.1 (ELMO NO.1) Zones A and 0 have not received recommended levels of service due to lack ofresources; and WHEREAS, the current maximum allowable assessment does not meet maintenance budget requirements for these OSDs; and WHEREAS, certain of these OSDs are operating at a deficit level and reserves have hcen exhausted and others of these OSDs' reserves are below the Municipal Code allowance hecause they have been subsidizing shonfalls and are projected to be exhausted in the near ['uture; and WHEREAS, the City proposes to conduct a Proposition 2 I 8 ballot process to see if there is support for increasing the maximum allowable assessment in these OSDs; and WHEREAS, the City is proposing to enter into an amendment to its Agreement with i Is special tax districts consultant, NBS Govemment Finance Group, dba NBS to perform all Clspeets of the Proposition 218 ballot process; 10-24 NOW, THEREFORE, BE [T RESOLVED by the City Council of the City of Chula Vista that it authorizes the preparation of an Engineer's Report to initiate the Proposition 2i8 hal[ot process to consider increasing assessments for Open Space Districts (OSDs) 3, 7, 9, uSD 20 Zones 2, 4, 7, OSD 23, and East[ake Maintenance District No. I (ELMD No.1) Zones A and D. [)resented by Approved as to f0l111 .~2,--,,~ 0,- /(~:t:;- Scott Tulloch City Engineer Ann Moore City Attorney ] I: '"J:N( j INEER',RES{ lS\RcsnQ()()7\05-22-07\Reslllulillll IiI]" (>S [)~ I't~viscu by ec.ullc 10-25 RESOLUTION NO. 2007- RESOLUTION APPROVING AN AMENDMENT TO AN AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND NBS GOVERNMENT FINANCE GROUP. DBA NBS, FOR PROPOSITfON 218 BALLOT SERVICES FOR CERTAIN OPEN SPACE DISTRICTS AND AUTHORIZING THE MAYOR TO EXECUTE THE AMENDMENT. WHEREAS, the City of Chula Vista and NBS Government Finance Group, dba NBS INBS) entered into an Agreement dated May 10,2005 where NBS agreed to assist the City with various tasks related to Assessment Districts, Mello-Roos, Community Facilities Districts, and Open Space Districts; and WHEREAS, that Agreement allows for the provision of Proposition 218 Compliance 'IS an optional item; and WHEREAS, the City administers and maintains thirty-six (36) Open Space Districts I OS Os) and associated zones; and WHEREAS, these OSDs provide a financing mechanism to maintain the public open space areas associated with each particular development and were formed under the 1972 Landscaping and Lighting Act found in Streets and Highways Code sections 22500 C/. self; and WHEREAS, OS Os 3, 7, 9, OSD 20 Zones 2, 4, 7, OSD 23 and Eastlake Maintenance District No. I (ELMO NO.1) Zones A and 0 have not received recommended levels of service due to lack ofresources; and WHEREAS, the current maximum allowable assessment does not meet maintenance budget requirements for these OSDs; and WHEREAS, certain of these OSDs are operating at a deficit level and reserves have been exhausted and others of these OSDs' reserves are below the Municipal Code allowance because they have been subsidizing shortfalls and are projected to be exhausted in the near future; and WHEREAS, the City proposes to conduct a Proposition 218 ballot process to see if there is support for increasing the maximum allowable assessment in these OSDs; and WHEREAS, NBS can perform all aspects of the Proposition 218 ballot process; and 10-26 WHEREAS, the Engineering Department's operating budget can accommodate up to 575,000 to fund the additional required Proposition 218 services to support the ballot pi"Ocess; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it approves an amendment to an Agreement between the City of Chula Vista and NBS Government Finance Group, dba NBS for Proposition 218 ballot services for certain Open Space Districts and authorizes the Mayor to execute the Amendment. Presented by Approved as to fonn , 1 ' ;t~ {1 d ~ ~~~ Scott Tulloch City Engineer Ann Moore City Attorney IITN( ,INEER'.RESnS\Resos200T,0.5-n-07\Res\)ILltioll for USD Cnnsult<.llll n;vised by ec,doc 10-27