City of Culver City, California
City Council Agenda Item Report
RECOMMENDATION:
Staff recommends the City Council adopt a resolution initiating proceedings for a
proposed increase of assessments within Landscaping Maintenance District No. 1,
the levy of annual assessments therein, and ordering the preparation of an
assessment engineer’s report. Staff also recommends the City Council approve a
professional services agreement with NBS Government Finance Group dba NBS for
assessment district consulting services, in an amount not to exceed $12,000 and
approval of a related budget amendment.
A budget amendment requires a four-fifths vote
BACKGROUND/DISCUSSION:
LMD#1 consists of two zones (Studio Estates and Ballona Creek east of Overland
Avenue adjacent to Jefferson Business Park) and was created for the purpose of
providing on-going maintenance of landscaping within the District. Location maps
will be included in the Assessment Engineer's Report. The assessment includes
costs for providing complete maintenance, administration, and preparation of the
Assessment Engineer's Report.
On May 26, 2009, staff will present to the City Council the Assessment Engineer’s
report, and request the City Council declare its intention to levy the annual
assessment by a majority ballot process of the property owners within the District
Meeting Date: 05/11/2009 Item Number: A-5
AGENDA ITEM: FOUR-FIFTHS VOTE REQUIREMENT - (1) Adoption of a
Resolution initiating Proceedings for a Proposed increase of Assessments within
Landscaping Maintenance District Number 1, the Levy of Annual Assessments
therein, and Ordering the Preparation of an Assessment Engineer’s Report; (2)
Approval of a Professional Services Agreement with NBS Government Finance
Group (dba NBS) for Assessment District Consulting Services; and (3) Approval
of a Related Budget Amendment
Contact Person/Dept.: Mate Gaspar/PW Phone Number: (310) 253-5602
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: []
Public Notification: Master E-mail Notification on (May 6, 2009); All Property Owners
within the District on (May 1, 2009)
Department Approval:
Charles D. Herbertson (05/01/09)
City Attorney Approval:
Carol Schwab (by H. Baker) (05/06/09)
Chief Financial Officer Approval:
Jeff Muir (by M. Noller) (05/06/09)
City Manager Approval:
Jerry B. Fulwood (05/06/09) City of Culver City, California
City Council Agenda Item Report
per Proposition 218 requirements, and set the date, time and place for the Public
Hearing.
This year, based on a preliminary evaluation and several years of historical actual
data, staff is proposing the assessment district levy be modified to provide for an
automatic annual increase based on the Consumer Price Index (CPI) plus 5%. If
approved by the property owners in the District, the annual CPI increase would be
applied with an additional 5% premium each year until the total revenues generated
from the District match the annual expenditures and the funds have a positive
balance.
As stated earlier, the assessment process is much more difficult and time consuming
when increases are proposed. In order to complete the Assessment Engineer’s
Report by the deadline for inclusion in the upcoming 2009/10 tax rolls, it is
recommended that the preparation of the Assessment Engineer’s Report and other
related assessment services be conducted by a professional consulting firm.
NBS is a consulting firm that specializes in the processing of the annual assessment
levies to the assessment districts for many agencies in the region. Recently, the
Redevelopment Agency contracted with NBS to prepare a proposed landscaping
assessment district on Washington Boulevard near Meier Street.
NBS is proposing to conduct their professional services for an amount not-to-exceed
$12,000 (including reimbursable expenses).
FISCAL ANALYSIS:
It normally is the goal of an Assessment District to be 100 percent self-supporting for
all expenditures (thereby eliminating the need for subsidy from other funds, including
the General Fund). Property owners within the District are charged their fair share of
these costs, as will be calculated in the Assessment Engineer’s Report.
If the anticipated increase to the assessment is not approved by a majority of
property owners within the District, then the District is expected to have insufficient
revenues to continue services at existing levels. As a result, the City Council may
determine to consider any one or a combination of the following: (1) services may
be decreased accordingly to stay within the existing assessment amount; (2) the
City Council may elect to subsidize the district with other funds, typically general
funds. Such a discussion can be held at the time the City Council considers the
Engineer’s Report and holds the Public Hearing.
City of Culver City, California
City Council Agenda Item Report
Culver City Municipal Code Section 15.01.045 states that incidental expenses
incurred in conjunction with assessment districts include the cost of preparation of
the engineer’s reports, assessment, printing, advertising, posting, and mailed
notices. There is funding available in Fund 425 – Landscape Maintenance District to
accommodate the professional services agreement with NBS. This funding includes
receipts from the respective assessment district annual levies, and therefore would
be appropriate to use for this purpose.
ATTACHMENT:
1. Resolution
2. NBS proposal
3. Informational flyer to residents (mailed on May 1, 2009)
MOTIONS:
That the City Council:
1. Adopt a resolution initiating proceedings for a proposed increase of assessments
within Landscaping Maintenance District No. 1, the levy of annual assessments
therein, and ordering the preparation of the Assessment Engineer’s Report, and
setting the date for a Public Hearing thereon; and,
2. Approve a budget amendment to appropriate funds in the amount of $12,000
from Fund 425 Landscape Maintenance Assessment District reserve to object
account 42533100.619800 – Other Contractual Services (requires four-fifths
vote); and,
3. Approve a professional services agreement with NBS Government Finance
Group dba NBS for assessment district consulting services in an amount not to
exceed $12,000; and,
4. Authorize the City Attorney to review/prepare the necessary documents; and,
5. Authorize the City Manager to execute such documents on behalf of the City.
5/11/09
FOUR-FIFTHS VOTE REQUIREMENT: (1)
Adoption of a Resolution initiating Proceedings for
a Proposed increase of Assessments within
Landscaping Maintenance District Number 1, the
Levy of Annual Assessments therein, and Ordering
the Preparation of a preliminary Assessment
Engineer's Report; (2) Approval of a Professional
Services Agreement with NBS Government
Finance Group (dba NBS) for Assessment District
Consulting Services; and (3) Approval of a Related
Budget Amendment
MEETING DATE:
AGENDA ITEM:
ATTACHMENTS
Pages|109| Resolution
1-2|109| NBS Proposal
3-5|109| Informational Flyer to Residents
6RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CULVER CITY, CALIFORNIA, INITIATING PROCEEDINGS FOR
A PROPOSED INCREASE OF ASSESSMENTS WITHIN
LANDSCAPING MAINTENANCE DISTRICT NO. 1, THE LEVY OF
ANNUAL ASSESSMENTS THEREIN AND ORDERING THE
PREPARATION OF AN ASSESSMENT ENGINEER'S REPORT.
WHEREAS, the City Council of the City of Culver City has by previous
Resolutions formed and levied annual assessments for Landscaping Maintenance District No. 1
(the "District"), pursuant to provisions of Chapter 15_01 of the Culver City Municipal Code
rCCMC"), that provides for the levy and collection of assessments by the County of Los
Angeles for the City of Culver City to pay for the maintenance and services of all improvements
and facilities related hereto; and,
WHEREAS, the City Council desires to increase assessments within the District;
and, has determined that all parcels within the District receive special benefit from the
mprovements; and,
WHEREAS, the City Council has retained the consulting firm of NBS for the
purpose of assisting with the proposed increase in assessments and preparing an Assessment
Engineer's Report relating to proposed assessment increases within the District, which will take
effect for Fiscal Year 2009/10 (the 'Engineer's Report"), to be filed with the City Clerk, in
accordance with CCIVIC Section 15111_055.
NOW, THEREFORE, the City Council of the City of Culver City, DOES HEREBY
RESOLVE as follows:
The City Council hereby proposes to increase assessments within the
District to pay for increased costs to service and maintain the existing improvements with the
District.|1010101010101010 10
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CANN A. SCHWAB, City Attorney
2. The City Council hereby orders the preparation of the Engineer's Report
2 in accordance with the requirements of the CCMC Section 15.01.055, to be filed with the City
Clerk for submission to the City Council. The Engineer's Report shall be prepared by NBS and
4 approved by the City Engineer, prior to filing with the City Clerk.|1010|APPROVED AND ADOPTED this day of 2009. 6|101010 10
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D. SCOTT MALSIN, MAYOR
City of Culver City, California
ATTEST: APPROVED AS TO FORM:
MARTIN R. COLE, City ClerkApril 6, 2009
Mr. Mate 'Matt" Gaspar
Engineering Services Manager
City of Culver City
9770 Culver Boulevard
Culver City, CA 90232
Subject: Addendum to Original Agreement to Add Consulting Services for Increase
of Assessments for Landscaping Maintenance District No. 1 and Higuera
Street Landscaping and Lighting Maintenance District
Dear Mate:
NBS would like to thank you for the opportunity to provide Assessment Increase Services for the
City of Culver City (City"). We will add these services to our existing agreement with the City. All
other provisions of the existing contract between the City and NBS remain in effect. We look
forward to continuing our professional relationship.
Please find enclosed two (2) copies of our Executed Agreement. Upon signing, please return
one copy to the undersigned and keep one copy for your records.
Scope of Services
I Assessment Increase
Project 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 or
administration of the Districts proposed to be increased_
• Develop project schedules to meet legal requirements and provide for effective interfacing of all
involved parties.
Establish and coordinate with City staff a schedule to assure completion of necessary actions
and compliance with statutes.
Parcel Database. NBS will prepare a district parcel database reflecting data from the latest County
Assessor's Secured Roll. The database will include ownership, mailing and parcel information
relevant to the spread of the assessments.
Budget Development NBS will assist City staff to establish a budget for the projected costs of
maintaining all improvements. Cost categories may include, but not be limited to, landscaping,
lighting, maintenance, capital improvements, incidental costs (engineering, legal and city
administration), operating reserves, capital improvement reserves and delinquency reserves.
Page 1
3Agency 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 any contributions to be made from the City to the District. NBS will review
mailed and published legal notices, establish the date for the public hearing, verify scheduling, City
approach, District requirements and other issues related to the successful operation of the
proposed district.
Engineer Signature. NBS will have a Registered Professional Engineer (PE) review the
Engineer's Report for signature and stamp.
Preliminary Engineer's Report. NBS will prepare, submit and review with City staff a Preliminary
Engineer's Report, including description of improvements, plans and specifications, cost estimate,
assessment criteria and assessment roll.
Public Informational Mailer. NBS will work in conjunction with the City to design and prepare a
public informational mailer. The primary goal of the mailer is to educate property owners about the
need to increase each District's assessments in order to fund the ongoing maintenance of public
improvements at the same level provided in previous years. NBS will mail the public informational
piece to all property owners in each District. The public informational mailer will provide the date,
time and location for the Public Hearing.
Legal Notices and Assessment Ballots. NBS will prepare legal notices and assessment ballots
to be mailed, as required, for compliance with the Culver City Municipal Code and Proposition 218.
Assessment Ballot Tabulation. NBS will tabulate the ballots returned at the Public Hearing, via
the most appropriate method (bar code or other) and report the statistics upon completion.
Meeting Attendance. NBS will attend the Public Hearing.
Final Engineer's Report. NBS will prepare, submit and review with City staff a Final Engineer's
Report, including description of improvements, plans and specifications, cost estimate, assessment
criteria, assessment roll and diagram as approved by the City Council.
Toil-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 Assessment
Increase.
Fee Structure
Assessment Increase Services]
Landscaping Maintenance District No. 1
Higuera Street Landscaping and Lighting Maintenance District
* fee is for proceedings for both districts performed concurrently
'Expenses]
$18,000*
Customary out-of-pocket expenses will be billed to the City at actual cost to NBS. These
expenses include, but are not limited to, mailing fulfillment, postage, copying, printing and travel
costs.
Page 2[Additional Servicesi
The following table shows our current hourly rates. Additional services authorized by the City, but
not included in the scope of services will be billed at this rate or the then applicable hourly rate.
Title Hourly Rate
Director $ 190
Senior Consultant/Programmer 150
Engineer 140
Consultant 130
Analyst 100
Clerical/Support 55
'Terms'
Assessment Increase Services Fees will be invoiced as follows: 50% upon delivery of the
Preliminary Engineer's Report and 50% upon assessment ballot tabulation. If the project is
prematurely terminated by either party, NBS shall receive payment for work completed. Payment
shall be made within 30 days of submittal of an invoice. If payment is not received within 90 days
simple interest will begin to accrue at the rate of 1.5% per month.
Please feel free to contact me if you have any questions or need further information.
Best regards,
NBS Government Finance Group,
DBA NBS
City of Culver City
Mike Rentner Name
President and CEO
Title Date Title Date
Page 3Important Information about
J. Landscaping Maintenance District No.
Council Meeting Dates and Times
Each of the City Council meetings listed below are to be held at the Mike Balkman
Council Chambers, 9770 Culver Boulevard, Culver City, California at 7PM. The following are the dates and topics for
discussion.
May 11, 2009
Topic: City Council to initiate the
proceedings for the proposed
increase of assessment levies and
ordering the preparation of the
preliminary Engineer's Report for
the proposed increase.
May 26, 2009
Topic: Approving the preliminary
Engineer's Report, including the
proposed assessment amounts
and setting the time and place of
the public hearing.
July 13, 2009
Topic: City Council to hold a
Public Hearing. Property
owners can express opinions
regarding the proposed
increase, ballots are tabulated
and results are announced.
Background
The Landscaping Maintenance District No. 1 was formed in 1978 to provide for the maintenance of
improvements that specially benefit your parcel. At formation, the District did not include an escalation clause to allow
for an annual increase in assessments due to the rise in maintenance costs. The costs of maintenance are now
considerably higher than the amount that is being collected through your property tax bill. An annual escalation clause
is being proposed in order to cover higher costs and the replenishment of funds. This is not a new assessment and if
the addition of the escalation clause is not passed, the existing assessment will remain in place. Landscaping
Maintenance District No. 1 is comprised of two zones which include the area southeast of Culver Boulevard, southwest
of Elenda Street and northwest of Arizona Avenue, generally described as Studio Estates (Zone 1) and the area
northwest of Jefferson Boulevard, east of Overland Avenue and bordering the Ballona Creek on the north and the
Westside Business Park on the northeast (Zone 2).
What does the annual levy provide?
Maintenance, servicing and operation include, but are not limited to, the
following:
• Weekly maintenance of the landscaping area and irrigation systems
• Weed and litter control
• Fungus, insect and rodent control
• Plant replacement, as needed
What is at risk and why?
Costs of labor, materials and supplies have increased substantially, forcing the District to
tap into the City's General Fund to provide the required levels of maintenance and service. As a result the City may no
longer continue to fund the maintenance at the current level. If the property owners within the District do not approve
the proposed assessment increase, the City may curtail services. With no increase in the assessment, residents may
expect the following:
• Reduction or elimination of shrub/ground fertilization
• Reduction or elimination of sprinkler equipment and plant replacement
• Reduction in fungus, insect and weed control
• Reduction in the control of litter, trash and weeds
How much could the rates increase? There are two zones within the District. The Zone 1 assessment is on a per
parcel basis and the Zone 2 assessment is based on each parcel's square footage. For Fiscal Year 2009/10 the
increase in the assessment would be as follows:
Zone
Zone 1
Zone 2
Current Assessment Rate
$175.52 per parcel
$0.0213 per square foot
Proposed Maximum Assessment Rate Increase
$184.92 per parcel $9,40 per parcel
$0.0247 per square foot $0.0034 per square foot
Thereafter, as of February 1 of each fiscal year beginning Fiscal Year 2010/11, the maximum assessment amount shall
be increased by the February Consumer Price Index for All Urban Consumers for the Los Angeles, Riverside and
Orange County plus 5%. The 5% premium will continue until the revenues for the district are sufficient to cover costs
and the fund has a positive fund balance.
What is next? Assessment ballots will arrive in the mail the week of June l st . You may return your ballot by mail or in
person to the office of the City Clerk, before the close of the Public Hearing on July 13
th
. if you have any questions or
would like additional information please contact Mate "Matt" Gaspar Engineering Services Manager at (310) 253-5602.
Thank you for your participation.