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HomeMy WebLinkAboutResolution 2021-159 N.C.S. 9/20/2021 Resolution No. 2021-159 N.C.S. Page 1 Resolution No. 2021-159 N.C.S. of the City of Petaluma, California RESOLUTION APPROVING THE ENGINEER’S REPORT; DECLARING THE CANVASS OF BALLOTS OF PROPERTY OWNERS; FORMING OAKS AT SUNNYSLOPE LANDSCAPE ASSESSMENT DISTRICT, DISTRICT 2021-01; ORDERING THE IMPROVEMENTS AND CONFIRMING THE DIAGRAM AND ASSESSMENT PURSUANT TO THE LANDSCAPE AND LIGHTING ACT OF 1972 AND ARTICLE XIIID, SECTION 4 OF THE CALIFORNIA CONSTITUTION WHEREAS, the Lafferty Communities (“Developer”), has acquired 8.64 acres of certain real property which consists of 18 parcels; and WHEREAS, on December 20, 2010, City Council certified a Mitigated Negative Declaration for the larger Sunnyslope II Subdivision (“Project”), the Planned Unit Development and Development Standards, and the Subdivision Map; and WHEREAS, on July 3, 2017, City Council approved the Project Final Subdivision Map; and WHEREAS, between January 9, 2018, and July 23, 2019, the Planning Commission approved the various Site Plan and Architectural Review applications for each new residential lots (the Project approvals together being referred to herein as the “Project Entitlements”); and WHEREAS, Conditions of Approval Nos. 8, 38, 57c and 60 of Resolution No. 2010-230 require the Developer to construct certain public improvements within and along Sunnyslope Road and Oak Knoll Court within the City of Petaluma (“City”) including but not limited to the construction of public streets, the construction and maintaining of the Urban Separator Trail and connector trail, signage, sewer, and landscaping inspections and improvements described in Section 4 of this Resolution (the “Project Improvements”); and WHEREAS, during the December 20, 2010, City Council hearing a Resolution was approved for the formation of an assessment district to fund maintenance of public landscaping areas and stormwater improvements for the Project; and WHEREAS, California Streets and Highways Code Sections 22500 through 22679, Comprising the Landscape and Lighting Act of 1972 (“1972 Act”), provide authority for creation of benefit assessment districts to fund the maintenance of eligible improvements, including landscaping improvements, that provide special benefits to properties within the district; and WHEREAS, the proposed Landscape Assessment District, if it is formed, is to be known as the Oaks at Sunnyslope Landscape Assessment District (“District”) and designated as Landscape Assessment District No. 2021-1; and WHEREAS, in accordance with Section 22585 of the 1972 Act, the City Council, when considering forming the special assessment District pursuant to that section, adopted a resolution of initiation on August 2, 2021 Resolution No. 2021-130 N.C.S. to form an assessment district which contained the following required elements: (a) Proposed the formation of an assessment district pursuant to this part. (b) Described the improvements. DocuSign Envelope ID: CF1AE755-96B4-4B47-957E-2F7EC4D3CC29 Resolution No. 2021-159 N.C.S. Page 2 (c) Described the proposed assessment district and specified a distinctive designation for the district. (d) Ordered the engineer to prepare and file a report in accordance Section 22565 et. seq. of the Streets and Highways Code; and WHEREAS, in accordance with Sections 22567(c) and 22570 of the 1972 Act, the proposed boundaries of the District are shown on a map which indicates by a boundary line the extent of the territory proposed to be included in the District, which map is designated “Boundary of Proposed Assessment District No. 2021-1” (the “Map”), which was attached to and made a part of the Resolution Initiating Formation of the District Resolution No. 2021-130 as Exhibit A; and WHEREAS, the City retained Alison Bouley of Harris & Associates who prepared a benefit district report (“Report”) which is attached hereto as Exhibit A for the District in accordance with the requirements of Section 22567 et seq. of the 1972 Act and Article XIIID, Section 4 of the California Constitution, part of Proposition 218; and WHEREAS, Alison Bouley of Harris & Associates is competent to make and filed with the City Clerk, after approval of the City Engineer, the Report with regard to the Improvements, which report is required by the 1972 Act and Proposition 218; and WHEREAS, in accordance with Section 22567 et seq. of the 1972 Act, the Report concerning the Improvements for the District contained the following as specified in those sections: (a) Plans and specifications for the improvements. (b) An estimate of the cost of maintaining the improvements. (c) A diagram of the assessment district. (d) An allocation of the estimated cost of maintaining the improvements; and WHEREAS, in accordance with Section 4 of Article XIIID of the California Constitution, Part of Proposition 218, all special assessments shall be supported by a detailed engineer’s report prepared by a registered professional engineer certified by the State of California, and agencies that propose to levy an assessment shall identify all parcels which will have a special benefit conferred upon them and upon which an assessment will be imposed; the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the property related service being provided; no assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel; only special benefits are assessable; an agency shall separate the general benefits from the special benefits conferred on a parcel; and parcels within a district that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit; and WHEREAS, on August 2, 2021, the City Council adopted Resolution No. 2021-130 (the “Resolution of Initiation”) initiating the proceedings for the formation of the District and ordering the preparation of the Report on the District formation pursuant to the provisions of the Landscape and Lighting Act of 1972 and Section 4 of Article XIIID of the California Constitution; and WHEREAS, also on August 2, 2021, the City Council adopted Resolution No. 2021- 131 preliminarily accepting the Report on the formation of the District, which Report is made a part of this resolution by this reference, and setting the time and place of a public hearing on the Report and formation of the District for September 20, 2021, and directing that the City Clerk give mailed notice of the hearing and provide ballots as required by law; and DocuSign Envelope ID: CF1AE755-96B4-4B47-957E-2F7EC4D3CC29 Resolution No. 2021-159 N.C.S. Page 3 WHEREAS, Streets and Highways Code Section 22588 requires the City in forming a new Landscape and Assessment District pursuant to the Act to comply with the notice, protest, and hearing procedures in Section 53753 of the Government Code; and WHEREAS, any agency that complies with the notice, protest, and hearing requirements of Government Code Section 53573 shall not be required to comply with any other statutory notice, protest, and hearing requirements that would otherwise be applicable to the levy of a new or increased assessment; and WHEREAS, Section 53753 of the Government Code requires the City to mail notice to the record owner of each identified parcel in the proposed district’s boundary; and WHEREAS each mailed notice shall include the total amount of the proposed assessment chargeable to the entire district, the amount chargeable to the record owner’s parcel, the duration of the payments, the reason for the assessment and the basis upon which the amount of the proposed assessment was calculated, and the date, time, and location of a public hearing on the proposed assessment and each notice shall also include, in a conspicuous place thereon, a summary of the procedures for the completion, return, and tabulation of the assessment ballots including a statement that the assessment shall not be imposed if the ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessment, with ballots weighted according to the proportional financial obligation of the affected property; and WHEREAS, Government Code Section 53573 requires the City to provide notice by mail at least 45 days prior to the date of the public hearing upon the proposed assessment, and on the face of the envelope mailed to the record owner, in which the notice and ballot are enclosed, there shall appear in substantially the following form in no smaller than 16-point bold type: “OFFICIAL BALLOT ENCLOSED;” and WHEREAS, Government Code Section 53573 requires the mailed notice to contain an assessment ballot that includes the agency’s address for receipt of the ballot and a place where the person returning the assessment ballot may indicate his or her name, a reasonable identification of the parcel, and their support or opposition to the proposed assessment; and WHEREAS, in accordance with Streets and Highways Code Section 22588 and Government Code Section 53573, on August 5, 2021, which date was 45 days before the scheduled September 20, 2021 public hearing, ballots and voting instructions and notice of the September 20, 2021 public hearing on the Report and formation of the District were mailed to all owners of property in the District; and WHEREAS, the August 5, 2021, mailed notice provided owners of property in the District, advised them that the September 20, 2021 City Council meeting would be conducted virtually, providing instructions on how to participate; and WHEREAS, pursuant to Government Code Section 53573(d), at the time, date, and place stated in the notice mailed, the agency shall conduct a public hearing upon the proposed assessment; and WHEREAS, pursuant to Government Code Section 53573(d) at the public hearing, the agency shall consider all objections or protests, if any, to the proposed assessment, and any person shall be permitted to present written or oral testimony; and WHEREAS, pursuant to Government Code Section 53573(e)(1), at the conclusion of the public hearing conducted, an impartial person designated by the agency who does not have a vested interest in the outcome of the proposed assessment shall tabulate the assessment ballots submitted, and not withdrawn, in support of or opposition to the proposed assessment; and DocuSign Envelope ID: CF1AE755-96B4-4B47-957E-2F7EC4D3CC29 Resolution No. 2021-159 N.C.S. Page 4 WHEREAS pursuant to Government Code Sections 53573(e)(4) a majority protest exists if the assessment ballots submitted, and not withdrawn, in opposition to the proposed assessment exceed the assessment ballots submitted, and not withdrawn, in its favor, weighting those assessment ballots by the amount of the proposed assessment to be imposed upon the identified parcel for which each assessment ballot was submitted; and WHEREAS pursuant to Government Code Sections 53573(e)(5) if there is a majority protest against the imposition of a new assessment, or the extension of an existing assessment, or an increase in an existing assessment, the agency shall not impose, extend, or increase the assessment; and WHEREAS, pursuant to Streets and Highways Code Section 22591, during the course or upon the conclusion of the public hearing, the City Council may order changes in any of the matters provided in the report, including changes in the improvements, the boundaries of the proposed assessment district and any zones therein, and the proposed diagram or the proposed assessment, and the City Council may, without further notice, order the exclusion of territory from the proposed district; and WHEREAS, in accordance with the requirements of Article XIIID, Section 4, and Section 53753 of the Government Code, following the public hearing on the Report and formation of the District held on April 20, 2020, the City Clerk canvased the ballots submitted concerning the Report and formation of the District, and declared that a majority protest did not exist concerning formation of the District; and WHEREAS, the environmental analysis for compliance of the Project with the California Environmental Quality Act (CEQA) was completed on December 16, 2010, by the City Council’s adoption of a mitigated negative declaration for the Oaks at Sunnyslope development which studied and addressed the proposed Project and its improvements pursuant to Resolution 2010-228 N.C.S; and WHEREAS, additionally the landscaping and improvements are exempt pursuant to CEQA Guidelines Section 15304(b), minor alterations to land which explicitly exempts new gardening or landscaping. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Petaluma as follows: 1. Recitals. The above recitals are hereby declared to be true and correct and incorporated into this resolution as findings of the City Council. 2. CEQA. The environmental analysis for compliance of the Project with the California Environmental Quality Act (CEQA) was completed on December 16, 2010, by the City Council’s adoption of a mitigated negative declaration for the Oaks at Sunnyslope development which studied and addressed the proposed Project and its improvements pursuant to Resolution 2010-228 N.C.S. Additionally the landscaping and improvements are exempt pursuant to CEQA Guidelines Section 15304(b), minor alterations to land which explicitly exempts new gardening or landscaping. 3. Initiation of Proceedings and Declaration of Initiation to Levy Assessment. In accordance with Section 22585 of the California Streets and Highways Code (the 1972 Act), Section 4 of Article XIIID of the California Constitution (part of Proposition 218), and other applicable law, on August 2, 2021, City Council adopted Resolution No. 2021-130 initiating proceedings to form the Oaks at Sunnyslope Landscape Assessment District (“District”) to fund the cost of maintaining the Improvements benefitting properties within the District and declares its intention to levy a special assessment upon the lands within the assessment district in proportion to the respective special and direct benefit to be received by each assessed parcel of land from the Improvements as stated in the attached Engineer’s Report. DocuSign Envelope ID: CF1AE755-96B4-4B47-957E-2F7EC4D3CC29 Resolution No. 2021-159 N.C.S. Page 5 4. Nature of Improvements Maintenance. The Improvements maintenance generally include: • Landscape maintenance services, including, but not limited to, care of landscape plants, replacement plantings, tree trimming as necessary. • Operation, maintenance and repair/ replacement of irrigation systems. • Mowing, vegetation removal, weed and other landscape pest control as necessary. • Periodic litter removal, vandalism repair, periodic mulch replenishment. • Maintenance and cleaning of the underground detention facilities. 5. Preparation of District Report. By adoption of Resolution No. 2021-130, the City Council appointed Alison Bouley, of Harris & Associates as the Assessment Engineer for the District. In accordance with Section 22585(d) of the 1972 Act, the City Council directed the Assessment Engineer to prepare, subject to the approval of the City Engineer, and to file with the City Clerk the Report and present to City Council the Report concerning maintenance of the District Improvements in accordance with all requirements of this resolution and applicable law, including the 1972 Act, specifically Section 22585, and Proposition 218. 6. Preliminarily Approving the Report and Setting the Time and Place of a Public Hearing for Formation of District. By adoption of Resolution No. 2021-131 on August 2, 2021, the City Council accepted the Report as approved by the City Engineer including the boundary map and filed with the City Clerk, directed the City Clerk to endorse the fact and date of such acceptance on the Report and to file the Report in her office. Resolution No. 2021-131 also found that the City complied with the Resolution of Intention requirements stated in Streets and Notice of the public hearing was required to be 45 days prior to the hearing and in conformance with Government Code Section 53573.Highways Code Section 22587. Additionally, Resolution No. 2021-131 set the time and place of the public Hearing to be held on September 20, 2021, at the regular City Council meeting. 7. Finds that Resolution No. 2021-130 and Resolution No. 2021-131 complied with the requirements of the Landscape and Lighting Act of 1972. 8. Finds that the City complied with the public noticing and protest hearing requirements of the Landscape and Lighting Act of 1972 and specifically Government Code Section 53753. 9. Report Approved. The Engineer’s Report prepared attached to Resolution No. 2021-131 concerning the District and accepted by the City Council on August 2, 2021, is hereby approved, which is attached hereto as Exhibit A. 10. District Formed. Finds that a majority protest pursuant to the Landscape and Lighting Act of 1972 did not exist and that District 2021-1, Oaks at Sunnyslope Landscape Assessment District, is hereby formed in accordance with the Landscape and Lighting Act of 1972 and Article XIIID, Section 4, of the California Constitution, and other applicable law. 11. Ordering the Improvements. Orders that the improvements listed in the Report are to be constructed and maintained in accordance with the Report. 12. Confirming the Diagram and Assessment. Confirms the assessment diagram and assessments stated in the Report. 13. Notice of Landscape Assessment District Formation. The City Clerk is hereby directed to record a notice in the office of the County Recorder of the County of Sonoma a Notice of Special Development Fee, in substantially the form prescribed in that section, and to mail a copy of the notice to each owner of land within the District. DocuSign Envelope ID: CF1AE755-96B4-4B47-957E-2F7EC4D3CC29 Resolution No. 2021-159 N.C.S. Page 6 14. Severability. The City Council hereby declares that every section, paragraph, sentence, clause, and phrase of this resolution is severable. If any section, paragraph, sentence, clause or phrase of this resolution is for any reason found to be invalid or unconstitutional, such invalidity, or unconstitutionality shall not affect the validity or constitutionality of the remaining sections, paragraphs, sentences, clauses, or phrases. 15. Resolution Effective Immediately. This Resolution shall take effect immediately upon its adoption. Under the power and authority conferred upon this Council by the Charter of said City. REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Council of the City of Petaluma at a Regular meeting on the 20th day of September 2021, by the following vote: Approved as to form: __________________________ City Attorney AYES: Mayor Barrett; Vice Mayor Barnacle, Fischer; Healy; King; McDonnell, Pocekay NOES: None ABSENT: None ABSTAIN: None ATTEST: ______________________________________________ City Clerk ______________________________________________ Mayor DocuSign Envelope ID: CF1AE755-96B4-4B47-957E-2F7EC4D3CC29 CITY OF PETALUMA ENGINEER’S REPORT FOR THE OAKS AT SUNNYSLOPE LANDSCAPE ASSESSMENT DISTRICT 2021-01 July 2021 PREPARED BY 22 Executive Park, Suite 200 Irvine, CA 92614 www.weareharris.com 19 EXHIBIT A DocuSign Envelope ID: CF1AE755-96B4-4B47-957E-2F7EC4D3CC29 Engineer’s Report The Oaks at Sunny Slope Landscape Assessment District 2021-01 TABLE OF CONTENTS Engineer’s Certification ................................................................................................. i Executive Summary ....................................................................................................... 1 A. Introduction ............................................................................................................. 1 B. Description of Assessment District .......................................................................... 2 Part I – Plans and Specifications ................................................................................... 3 A. Description of Improvements and Services Permitted Under the Landscaping and Lighting Act of 1972 ................................................................... 3 B. Improvements and Services for The Oaks at Sunnyslope Landscape Assessment District 2021-01 ................................................................ 3 C. Location of The Oaks at Sunnyslope Landscape Assessment District 2021-01 ..... 4 Part II – Method of Apportionment .............................................................................. 5 A. Benefit Analysis ...................................................................................................... 5 B. Maximum Assessment Methodology .................................................................... 7 C. Annual Assessment ................................................................................................ 8 Part III – Cost Estimate ................................................................................................ 10 Part IV – Assessment Diagram/Boundary Map .......................................................... 11 Part V – Assessment Roll............................................................................................. 13 Appendix A – Landscape Maintenance Plan Documents .......................................... A-1 20 DocuSign Envelope ID: CF1AE755-96B4-4B47-957E-2F7EC4D3CC29 Engineer’s Report The Oaks at Sunny Slope Landscape Assessment District 2021-01 Page i ENGINEER’S CERTIFICATION AGENCY: CITY OF PETALUMA PROJECT: THE OAKS AT SUNNYSLOPE LANDSCAPE ASSESSMENT DISTRICT 2021-01 TO: CITY COUNCIL ENGINEER’S REPORT Pursuant to the provisions of Section 22565 through 22574 of the Landscaping and Lighting Act of 1972 (“1972 Act”), said Act being Part 2 of Division 15 of the Streets and Highways Code of the State of California, Section 4 of Article XIII D of the California Constitution, and direction from the City Council of Petaluma, California, I submit herewith the following Engineer’s Report (“Report”), consisting of five parts. This Report provides for the formation of The Oaks at Sunnyslope Landscape Assessment District 2021-01 (hereinafter “Sunnyslope LAD”, or “LAD”) and establishes the Maximum Assessment to be levied in the Fiscal Year commencing on July 1, 2022 and ending on June 30, 2023 (2022-2023) and continuing in all subsequent Fiscal Years, for this area to be known and designated as: THE OAKS AT SUNNYSLOPE LANDSCAPE ASSESSMENT DISTRICT 2021-01 I do hereby assess and apportion the total amount of the costs and expenses upon several parcels of land within said designated area liable therefor and benefited thereby, in proportion to the estimated benefits that each parcel receives, respectively, from said services. NOW, THEREFORE, I, the ENGINEER, acting on behalf of the City Council of Petaluma, pursuant to the 1972 Act, do hereby submit the following: Pursuant to the provisions of law, the costs and expenses of Sunnyslope LAD have been assessed upon the parcels of land in the LAD benefited thereby in direct proportion and relation to the estimated benefits to be received by each of said parcels. As required by law, an Assessment Diagram/Boundary Map is filed herewith, showing Sunnyslope LAD, as well as the boundaries and dimensions of the respective parcels and subdivisions of land within said LAD as they exist as of the date of this Report, each of which subdivisions of land or parcels or lots, respectively, have been assigned a parcel/lot number within the subdivision and indicated on said Assessment Diagram/Boundary Map and in the Assessment Roll contained herein. 21 DocuSign Envelope ID: CF1AE755-96B4-4B47-957E-2F7EC4D3CC29 Engineer’s Report The Oaks at Sunny Slope Landscape Assessment District 2021-01 Page ii The separate numbers given the lots and parcels of land, as shown on said Assessment Diagram/Boundary Map and Assessment Roll, correspond with the numbers assigned to each parcel by the Sonoma County Assessor. Reference is made to the County Assessor Parcel Map for a description of the lots or parcels. As of the date of this Report, there are no parcels or lots within Sunnyslope LAD 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. DATED this ____ day of July 2021 ___________________________________________ Jeff A. Stutsman, City Engineer R.C.E. No. _______ City of Petaluma State of California 22 DocuSign Envelope ID: CF1AE755-96B4-4B47-957E-2F7EC4D3CC29 Engineer’s Report The Oaks at Sunnyslope Landscape Assessment District 2021-01 Page 1 EXECUTIVE SUMMARY A. Introduction Pursuant to the provisions of law, the costs and expenses of The Oaks at Sunnyslope Landscape Assessment District 2021-01 have been assessed upon the parcels of land in the LAD 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 parcels, reference is made to the Assessment Diagram/Boundary Map, a reduced copy of which is included herein. On this 2nd day of August, 2021, the Petaluma City Council, County of Sonoma, State of California, ordering the preparation of the Report providing for the formation of The Oaks at Sunnyslope Landscape Assessment District 2021-01 did, pursuant to the provisions of the 1972 Act, being Division 15 of the Streets and Highways Code of the State of California, adopt Resolution No. ______ for a special assessment district known and designated as: THE OAKS AT SUNNYSLOPE LANDSCAPE ASSESSMENT DISTRICT 2021-01 The boundary of Sunnyslope LAD includes the parcels of land within the residential development known as THE OAKS AT SUNNYSLOPE, also identified by the Assessor Parcel Numbers valid as of the date of this Report: 019-850-001-000 019-850-007-000 019-850-013-000 019-850-002-000 019-850-008-000 019-850-014-000 019-850-003-000 019-850-009-000 019-850-015-000 019-850-004-000 019-850-010-000 019-850-016-000 019-850-005-000 019-850-011-000 019-850-017-000 019-850-006-000 019-850-012-000 019-850-018-000 Harris & Associates submits this Report, consisting of five (5) parts, for the formation of said Sunnyslope LAD and the establishment of the Maximum Assessment to be levied and collected commencing Fiscal Year 2022-2023 and continuing in subsequent fiscal years. Part I Plans and Specifications: A description of Sunnyslope LAD’s boundaries and the proposed improvements within said LAD (“Plans” as described in Part I). Sunnyslope LAD shall consist of a benefit zone encompassing all of the properties within the residential development known as THE OAKS AT SUNNYSLOPE. 23 DocuSign Envelope ID: CF1AE755-96B4-4B47-957E-2F7EC4D3CC29 Engineer’s Report The Oaks at Sunnyslope Landscape Assessment District 2021-01 Page 2 Part II Method of Apportionment: A narrative of the property benefits from the improvements and the method of calculating each property’s proportional special benefit and annual assessment. The proposed initial Maximum Assessment and assessment range formula established for Sunnyslope LAD is based on current property development Plans and estimated annual costs and expenses associated with all improvements to be accepted and maintained by Sunnyslope LAD at build-out. Part III Cost Estimate: An estimate of the costs of maintenance of landscaping and paths including incidental costs and expenses in connection therewith for Fiscal Year 2022-2023. Part IV Assessment Diagram/Boundary Map: An Assessment Diagram/Boundary Map showing the parcels of land included within the boundaries of Sunnyslope LAD. For details concerning the lines and dimensions of the applicable Assessor’s Parcel Number(s), refer to the Sonoma County Assessor’s Map(s) as of the date of this Report. Part V Assessment Roll: A list of the separate numbers given to lots/parcels of land within Sunnyslope LAD, detailing the initial Maximum Assessment per parcel or lot to be applied on the tax roll for Fiscal Year 2022-2023. B. Description of Assessment District The services to be provided by Sunnyslope LAD include landscape maintenance services, including, but not limited to, care of landscape plants, replacement plantings, mulch replenishment, tree trimming, mowing, vegetation removal, weed and other landscape pest control, litter removal, vandalism repair, operation/maintenance/repair/replacement of irrigation systems, the costs of water and electricity, all in a public street right-of-way. All maintenance service areas are located within THE OAKS AT SUNNYSLOPE Planned Unit Development in the City of Petaluma as shown on Exhibits A-1, A-2, and A-3 referenced in Part I Plans and Specifications. The formation of Sunnyslope LAD, within THE OAKS AT SUNNYSLOPE, will provide the financial mechanism (annual assessments) by which the ongoing operation and maintenance of these improvements and services will be funded. Sunnyslope LAD’s structure, proposed improvements, method of apportionment and assessments described in this Report are based on the Plans provided to Harris & Associates as of the date of this Report, including all estimated direct expenditures, incidental expenses, and reserves associated with the energizing, maintenance and servicing of the proposed improvements. 24 DocuSign Envelope ID: CF1AE755-96B4-4B47-957E-2F7EC4D3CC29 Engineer’s Report The Oaks at Sunnyslope Landscape Assessment District 2021-01 Page 3 PART I – PLANS AND SPECIFICATIONS A.Description of Improvements and Services Permitted Under the Landscaping and Lighting Act of 1972 The following services are authorized under California Streets and Highways Code, Division 15, Part 2, the Landscaping and Lighting Act of 1972: o The installation and planting of landscaping, including trees, shrubs, grass and other ornamental vegetation; o The installation or construction of statuary, fountains and other ornamental structures and facilities; o The installation or construction of public lighting facilities, including, but not limited to, traffic signals; o 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 thereof, including, but not limited to, grading, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks or paving, water, irrigation, drainage, or electrical facilities; o The maintenance and/or servicing of any of the foregoing; o Incidental expenses, including, but not limited to, costs of preparation of the engineer’s report B.Improvements and Services for The Oaks at Sunnyslope Landscape Assessment District 2021-01 The services to be funded by Sunnyslope LAD include maintenance of landscaping immediately adjacent to the residential subdivision designated as THE OAKS AT SUNNYSLOPE. Formation of the assessment district was a condition of approval for development of the subdivision as detailed in Resolution 2010- 230. The proposed improvements described in this Report are based on current development and improvement plans provided to Harris & Associates as of the date of this Report. Improvement plans include the (1) Final Map of THE OAKS AT SUNNYSLOPE, A Planned Unit Development, by Steven J. Lafranchi & Associates, Inc., dated 06/01/2017; (2) Landscape Assessment District Maintenance Area Exhibits A-1, A-2, A-3, by Steven J. Lafranchi & Associates, Inc.; and (3) Landscape Site Plan/Hydrozone Map, THE OAKS AT SUNNYSLOPE, by Landesign Group, dated 07/21/2015 (“Plans”). Copies of the landscape maintenance area exhibits may be found in Appendix A of this Report. 25 DocuSign Envelope ID: CF1AE755-96B4-4B47-957E-2F7EC4D3CC29 Engineer’s Report The Oaks at Sunnyslope Landscape Assessment District 2021-01 Page 4 C. Location of The Oaks at Sunnyslope Landscape Assessment District 2021-01 Sunnyslope LAD is located within the City of Petaluma, County of Sonoma, State of California and is comprised of the Planned Unit Development known as THE OAKS AT SUNNYSLOPE. The area for Sunnyslope LAD is generally located north of Clearview Heights, west of Smith Drive, southwest of Sunnyslope Road, and southeast of Wallenberg Way. At full development, Sunnyslope LAD is projected to include 18 assessable residential lots/units. Sunnyslope LAD currently consists of the lots/parcels located in the following development area: • THE OAKS AT SUNNYSLOPE – Assessor Parcel Numbers as of the date of this Report: • 019-850-001-000 019-850-007-000 019-850-013-000 • 019-850-002-000 019-850-008-000 019-850-014-000 • 019-850-003-000 019-850-009-000 019-850-015-000 • 019-850-004-000 019-850-010-000 019-850-016-000 • 019-850-005-000 019-850-011-000 019-850-017-000 • 019-850-006-000 019-850-012-000 019-850-018-000 26 DocuSign Envelope ID: CF1AE755-96B4-4B47-957E-2F7EC4D3CC29 Engineer’s Report The Oaks at Sunnyslope Landscape Assessment District 2021-01 Page 5 PART II – METHOD OF APPORTIONMENT A. Benefit Analysis The 1972 Act 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 1972 Act 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 by assessed value. Section 22573 of the 1972 Act gives the following instructions for apportioning assessments to the parcels within the district: “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 Sunnyslope LAD to fairly apportion the costs based on the estimated benefit to each parcel. In addition, Article XIII D of the California Constitution (“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 County 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. The proposed improvements, the associated costs, and assessments have been carefully reviewed, and allocated based on the special benefit received by the parcels to be assessed as required by the 1972 Act and Article XIII D and are described in the following section. 27 DocuSign Envelope ID: CF1AE755-96B4-4B47-957E-2F7EC4D3CC29 Engineer’s Report The Oaks at Sunnyslope Landscape Assessment District 2021-01 Page 6 Special Benefit The landscape and pathway improvements within and immediately adjacent to Sunnyslope LAD provide direct and special benefit to the lots or parcels within Sunnyslope LAD. Therefore, the proper maintenance of these improvements also provides direct and special benefit by maintaining the functionality and safety of the improvements. Special Benefits of Sunnyslope LAD Authorized Improvements and Services: The special benefits associated with landscaping include: •Maintenance funding for the improvements is a condition of approval for the development. •Improved aesthetic appeal of properties providing a positive representation of the area and properties. •Enhanced desirability of properties through association with the improvements. •Environmental enhancement through improved erosion resistance, dust and debris control, and fire protection. •Reduced criminal activity and related crimes against properties (especially vandalism) through well-maintained surroundings and amenities. 28 DocuSign Envelope ID: CF1AE755-96B4-4B47-957E-2F7EC4D3CC29 Engineer’s Report The Oaks at Sunnyslope Landscape Assessment District 2021-01 Page 7 General Benefit The total benefit from the works of improvement is a combination of the special benefits to the parcels within Sunnyslope LAD and the general benefits to the public at large and to adjacent property owners. A portion of the total costs for the improvements and their maintenance within the district associated with general benefits, if any, cannot be assessed to the parcels in Sunnyslope LAD, but would be paid from other City of Petaluma funds. Because the landscaping improvements are located immediately adjacent to properties within Sunnyslope LAD, were required as a condition of approval for the development of the property, and are maintained solely for the benefit of the properties within Sunnyslope LAD, any benefit received by properties outside of Sunnyslope LAD is nominal. Therefore, the general benefit portion of the benefit received from the landscaping improvements for Sunnyslope LAD is zero, except as noted in the next paragraph Summary In summary, no property is assessed in excess of the reasonable cost of the proportional special benefit conferred on that property. Additionally, because the benefiting properties consist of a uniform land use (residential), it is determined that each of the residential parcels or lots within Sunnyslope LAD, at buildout, will benefit equally from the improvements. Therefore, the proportionate share of the costs and expenses for the maintenance and servicing of the landscaping, are apportioned equally on a per parcel basis within Sunnyslope LAD. B. Maximum Assessment Methodology The purpose of establishing a Maximum Assessment formula is to provide for reasonable increases and inflationary adjustments to annual assessments without requiring costly noticing and mailing procedures, which would add to Sunnyslope LAD costs and assessments. The Maximum Assessment formula shall be applied to all assessable residential parcels of land within Sunnyslope LAD. For Sunnyslope LAD, the initial Maximum Assessment for Fiscal Year 2022-2023 is as follows: • The initial Maximum Assessment established within Sunnyslope LAD shall be $15,447.00. • The initial Maximum Assessment established within Sunnyslope LAD shall be $858.17 per assessable residential parcel. The initial Maximum Assessment shall be increased annually based upon the Consumer Price Index (CPI) for all Urban Consumers in the San Francisco-Oakland-Hayward areas (Index), not to exceed three percent (3.00%) per year beginning July 1, 2023. The annual CPI adjustment will be based on the cumulative increase, if any, in the Index as it stands in April of each year over the base Index of 2022, starting in Fiscal Year 2023-2024. The Maximum Assessment is adjusted annually and is calculated independent of Sunnyslope LAD’s annual budget and proposed annual assessment. The proposed annual assessment (rate per 29 DocuSign Envelope ID: CF1AE755-96B4-4B47-957E-2F7EC4D3CC29 Engineer’s Report The Oaks at Sunnyslope Landscape Assessment District 2021-01 Page 8 assessable residential parcel) applied in any fiscal year is not considered to be an increased assessment if less than or equal to the Maximum Assessment amount. In no case shall the annual assessment exceed the Maximum Assessment. Although the Maximum Assessment will increase each year, the actual Sunnyslope LAD assessments may remain virtually unchanged. The Maximum Assessment adjustment is designed to establish a reasonable limit on Sunnyslope LAD assessments. The Maximum Assessment calculated each year does not require or facilitate an increase to the annual assessment and neither does it restrict assessments to the adjusted maximum amount. If the budget and assessments for the fiscal year require an increase and the increase is more than the adjusted Maximum Assessment, it is considered an increased assessment. To impose an increased assessment, the City of Petaluma must comply with the provisions of the California Constitution Article XIII D Section 4c, that requires a public hearing and certain protest procedures including mailed notice of the public hearing and property owner protest balloting. Property owners, through the balloting process, must approve the proposed assessment increase. If the proposed assessment is approved, then a new Maximum Assessment is established for Sunnyslope LAD. If the proposed assessment is not approved, the City may not levy an assessment greater than the adjusted Maximum Assessment previously established for Sunnyslope LAD. C.Annual AssessmentThe Method of Apportionment of the Assessment is based upon the relative special benefit derived from the improvements and conferred upon the assessable real property within Sunnyslope LAD over and above general benefit conferred upon the assessable real property within Sunnyslope LAD or to the public at large. It is determined that each residential parcel or lot within Sunnyslope LAD, at buildout, will benefit equally from the improvements. Therefore, the proportionate share of the costs and expenses for the maintenance and servicing of landscape and pathway improvements are apportioned on a per residential parcel basis for all benefiting residential parcels within Sunnyslope LAD. Any Exempt Property within Sunnyslope LAD is specifically excluded from the apportionment calculation and is exempt from assessment. The Assessment Rate per Residential Parcel within Sunnyslope LAD is calculated by dividing the total Annual Balance to Levy by the total number of Assessable Residential Parcels within Sunnyslope LAD, at buildout, to determine the Annual Assessment per Assessable Residential Parcel. The Annual Balance to Levy is the Total Annual Costs as seen in Part III – Cost Estimate. The Assessment for each Assessable Residential Parcel for FY 2022-2023 is calculated as follows: Annual Balance to Levy/Total number of Assessable Residential Parcels = Annual Assessment per Assessable Residential Parcel. 30 DocuSign Envelope ID: CF1AE755-96B4-4B47-957E-2F7EC4D3CC29 Engineer’s Report The Oaks at Sunnyslope Landscape Assessment District 2021-01 Page 9 PART III – COST ESTIMATE THE OAKS AT SUNNYSLOPE LANDSCAPE ASSESSMENT DISTRICT 2021-01 FOR FISCAL YEAR 2022-2023 Cost Description Total Costs for Sunnyslope LAD1 Landscape Maintenance $7,620.00 Backflow Inspection $120.00 Water $2,300.00 Maintenance Subtotal $10,040.00 Administrative Costs $3,650.00 Maintenance and Administrative Costs Subtotal $13,690.00 Operating Reserve (12.5% of Maintenance - Initial Year Contribution) $1,255.00 Annual Capital Reserve Contribution (5% of Maintenance) $502.00 Total Annual Costs for Sunnyslope LAD $15,447.00 Initial Maximum Assessment for Sunnyslope LAD2 $15,447.00 Number of Residential Parcels 18 Initial Maximum Assessment per Residential Parcel $858.17 1 Projected base rates of services for Fiscal Year 2022-2023 were provided by the City of Petaluma. 2 The initial Maximum Assessment shall be increased annually based upon the Consumer Price Index (CPI) for all Urban Consumers in the San Francisco-Oakland-Hayward areas, not to exceed three percent (3.00%) per year beginning July 1, 2023. 31 DocuSign Envelope ID: CF1AE755-96B4-4B47-957E-2F7EC4D3CC29 Engineer’s Report The Oaks at Sunnyslope Landscape Assessment District 2021-01 Page 10 PART IV – ASSESSMENT DIAGRAM/BOUNDARY MAP Part IV – Assessment Diagram/Boundary Map The Assessment Diagram/Boundary Map for The Oaks at Sunnyslope Landscape Assessment District 2021-01 by this reference is incorporated and made a part of this Report. Only the parcels identified within the Sunnyslope LAD Assessment Diagram are within said boundary. 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 according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment. Information identified on this Assessment Diagram/Boundary Map was provided by the City of Petaluma and parcel numbers verified on the County Assessor’s Parcel Map current at the time of preparation of this Report. The Sunnyslope LAD Assessment Diagram/Boundary Map identifying the boundaries of parcels within Sunnyslope LAD is included in this Report for reference on the following page. For details concerning the lines and dimensions of the applicable Assessor’s Parcel Numbers, refer to the County Assessor’s Maps as of the date of this Report. 32 DocuSign Envelope ID: CF1AE755-96B4-4B47-957E-2F7EC4D3CC29 Engineer’s Report The Oaks at Sunnyslope Landscape Assessment District 2021-01 Page 11 33 DocuSign Envelope ID: CF1AE755-96B4-4B47-957E-2F7EC4D3CC29 Engineer’s Report The Oaks at Sunnyslope Landscape Assessment District 2021-01 Page 12 PART V – ASSESSMENT ROLL Parcel identification for each lot or parcel within The Oaks at Sunnyslope Landscape Assessment District 2021-01 shall be the parcel as shown on the Sonoma County Secured Roll for the year in which this Report is prepared and reflective of the Assessor’s Parcel Maps. Sunnyslope LAD includes the following APNs as of the date of this Report: 019-850-001-000 019-850-007-000 019-850-013-000 019-850-002-000 019-850-008-000 019-850-014-000 019-850-003-000 019-850-009-000 019-850-015-000 019-850-004-000 019-850-010-000 019-850-016-000 019-850-005-000 019-850-011-000 019-850-017-000 019-850-006-000 019-850-012-000 019-850-018-000 The initial Maximum Assessment for Sunnyslope LAD is as follows: THE OAKS AT SUNNYSLOPE LANDSCAPE ASSESSMENT DISTRICT 2021-01 PROPOSED FISCAL YEAR 2022-2023 MAXIMUM ASSESSMENT Lot No. Assessor Parcel Number Initial Maximum Assessment 1 019-850-001-000 $858.17 2 019-850-002-000 $858.17 3 019-850-003-000 $858.17 4 019-850-004-000 $858.17 5 019-850-005-000 $858.17 6 019-850-006-000 $858.17 7 019-850-007-000 $858.17 8 019-850-008-000 $858.17 9 019-850-009-000 $858.17 10 019-850-010-000 $858.17 11 019-850-011-000 $858.17 12 019-850-012-000 $858.17 13 019-850-013-000 $858.17 14 019-850-014-000 $858.17 15 019-850-015-000 $858.17 16 019-850-016-000 $858.17 17 019-850-017-000 $858.17 18 019-850-018-000 $858.17 34 DocuSign Envelope ID: CF1AE755-96B4-4B47-957E-2F7EC4D3CC29 Engineer’s Report The Oaks at Sunnyslope Landscape Assessment District 2021-01 A-1 APPENDIX A – LANDSCAPE PLAN DOCUMENTS (Landscape Plan Documents begin on next page) 35 DocuSign Envelope ID: CF1AE755-96B4-4B47-957E-2F7EC4D3CC29 Engineer’s Report The Oaks at Sunnyslope Landscape Assessment District 2021-01 A-2 36 DocuSign Envelope ID: CF1AE755-96B4-4B47-957E-2F7EC4D3CC29 Engineer’s Report The Oaks at Sunnyslope Landscape Assessment District 2021-01 A-3 37 DocuSign Envelope ID: CF1AE755-96B4-4B47-957E-2F7EC4D3CC29 Engineer’s Report The Oaks at Sunnyslope Landscape Assessment District 2021-01 A-4 38 DocuSign Envelope ID: CF1AE755-96B4-4B47-957E-2F7EC4D3CC29