Maintenance Districts
2016/17 Consolidated Engineer’s Report
Presented By: Pablo Perez, NBS
June 21, 2016
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IMPLEMENTATION ACTION PLAN: ONE-YEAR PLAN
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Recommendation 5 of One
Year Plan (Priority 1B): Prepare a comprehensive financial
assessment of the Environmental
Resources, Golf Fund, Performing
Arts Center Fund, benefit assessment
and Development impact fee funds.
PRESENTATION OUTLINE
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• IntroductionBackground
• ProcessAnnual
Administration
• Answers to Frequently Asked Questions
FAQs
• New proceduresMaintenance
Oversight
• Next StepsFollow Up
BACKGROUND
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KEY MILESTONES TO DATE Date
Initiated Organizational Assessment that Identified Deficits &
Surpluses in Various Districts
September 2014
Contracted with NBS to Conduct In-Depth Review May 2015
NBS Issued Findings in Report titled “Maintenance Assessment
Districts Review Findings & Recommendations”
August 2015
Staff Review of Report and Preparation for Presentation September 2015
Presentation of Maintenance Assessment District Overview and
IAP
October 27, 2015
Presentation of District Boundary, Budget and Levy Audits, and
Community Outreach Plan
March 1, 2016
Community Outreach Meetings with Public March 2016
Presentation on Community Outreach, Annual Administration,
and Status Update
April 19, 2016
Presentation on 2016/17 Consolidated Engineer’s Report and
Status Update
June 7, 2016
2016/17 LMD Public Hearing June 21, 2016
• Develop and set 2016/17 budgets.
• Determine 2016/17 maximum and actual assessment rates.
• Finalize analysis of general and special benefit.
• Integrate indirect cost and internal service cost allocation results.
• Prepare resolutions and consolidated Engineer’s Report.
• City Council Meeting on 6/7/2016.
• City Council Meeting/Public Hearing on 6/21/2016.
• Submit levy of assessments to Ventura County
Auditor/Controller.
ANNUAL ADMINISTRATION PROCESS
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What is the breakdown of the Maintenance Assessment
Districts (“Districts”) maintained by City Staff,
contractors and HOA?
Note: The breakdown of Districts by City Staff, Contractor, and HOA
throughout this presentation does not include the Waterways and
Mandalay Beach Maintenance Districts unless specifically stated.
FREQUENTLY ASKED QUESTIONS
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Maintained by
Number of
LMDs
Landscaping
Sq.Ft
Maintained Districts
City Staff 18 979,713 LMDs, 1, 7&8, 9, 10, 11, 12, 13, 15, 17, 18, 20,
22, 23, 24, 25, 26, 27, 29
Contractor 35 4,184,112
LMDs 3, 14, 16, 28, 30, 31, 32, 33, 34, 35, 36,
37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49,
50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60
Self-Maintained/HOA 3 897,843 LMDs 2, 19, 21
Total 56 6,061,668
What is the total amount available for maintenance and
utilities for City-maintained, contractors and HOA
Districts, including the exterior improvements removed
and any reductions in the level of service necessary after
January 1st?
FREQUENTLY ASKED QUESTIONS
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Maintained by
12 Month
Original
Estimated
Maintenance
Costs
Total
Estimated
Utility Costs
Reduction in
level of Service/
Shortfall
1/1/2017 -
6/30/2017
Reduction in
Maintenance
Costs; City
Transfer of
Maintenance
Obligation
Total Amount
Available for
Maintenance
City Staff $272,705 $77,015 ($133,942) ($32,069) $183,708
Contractor 754,503 416,051 0 (192,160) 978,395
Self-Maintained/HOA 0 751 (376) 0 376
Total $1,027,208 $493,817 ($134,318) ($224,229) $1,162,478
What Districts were recently re-bid using the new
template and what is the breakdown of available funds for
maintenance and utilities for those Districts?
*A description of the levels of service can be found on the City’s Maintenance Assessment Districts webpage.
FREQUENTLY ASKED QUESTIONS
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District Name
Level of
Service*
Amount
Available for
Ongoing Basic
Maintenance
Amount
Available for
Alternates
Total
Estimated
Utility
Costs
Reduction in
Maintenance
Costs; City
Transfer of
Maintenance
Obligation
Total Amount
Available for
Maintenance
LMD No. 3 (River Ridge) B $34,500 $9,994 $27,991 ($9,575) $62,910
LMD No. 16 (California Lighthouse) C 10,200 2,863 11,694 (7,715) 17,042
LMD No. 38 (Aldea Del Mar) A 44,640 19,656 20,013 (9,954) 74,355
LMD No. 39 (Promesa & Sueno) A 34,708 15,274 37,783 (25,672) 62,093
LMD No. 39 (DR Horton) A 20,552 5,546 11,619 (6,929) 30,788
LMD No. 55 (Wingfield West) A 21,720 839 4,280 (5,539) 21,300
LMD No. 56 (Cottages at Patterson) B 4,200 1,178 664 (2,302) 3,740
LMD No. 57 (Golden State Self
Storage)A 6,000 3,864 1,046 (4,066) 6,844
LMD No. 58 (Westwind) A 22,500 10,440 4,676 (6,489) 31,127
LMD No. 60 (Artisan) A 16,200 7,680 3,652 (6,920) 20,612
What is included in the various maintenance levels of
service?
Please refer to the City’s Maintenance Assessment Districts webpage for
a full description of the maintenance levels of service. The following is
a portion of the maintenance activities and frequency by service level.
FREQUENTLY ASKED QUESTIONS
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What are the basic ongoing maintenance services?
Ongoing basic maintenance services may vary by District but generally
include the following: litter/debris control, irrigation to maintain proper plant
growth, weed control, vertebrate control, pruning and edging of shrubs and
groundcovers, mowing and edging of turf, maintenance of benches and
trash receptacles, maintenance of play structures, and maintenance of
parkway lights clean and free of graffiti.
What are the alternate services?
Alternate services (as needed and as requested by the City) may vary by
District but generally include the following: fertilization, soil aerification,
thatch removal, pesticide application, tree maintenance, landscape
replacement, weather damage, graffiti removal, electrical lighting repairs,
fencing repairs, mailbox repairs, and hardscape/sidewalk repairs.
FREQUENTLY ASKED QUESTIONS
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The following shows a sample of the various tasks and
fees for alternate services.
The ongoing monthly maintenance costs for LMD 3 (B level of service) is:
$34,500.
FREQUENTLY ASKED QUESTIONS
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Service Monthly Cost
Soil Aerification $93
Thatch Removal 120
Pesticide Application 180
Tree Maintenance 850
Landscape Replacement 210
Weather Damage 90
Graffiti 90
Total $1,633
What City-staff positions and consultant fees are being
funded and allocated to the 2016/17 assessment levies as
Administrative Costs?
The Administrative Costs include City Staff time and expenses directly
related to the administration and management of the Districts, including
oversight and coordination of City crew and contractor provided services,
general City overhead, accounting/finance functions, preparation of
Resolutions/Engineer’s Report and documents related to the annual
process of placing assessments on the tax roll, and handling of property
owner inquiries.
Please note that a portion of the Administrative Costs are paid by the
Waterways Maintenance District, Mandalay Beach Maintenance District
(“MAD 4”) and the Community Facilities Districts (“CFDs”). In addition,
Districts with surplus funds have received a credit for their portion of the
Consultant Fees (paid from the surplus funds).
FREQUENTLY ASKED QUESTIONS
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The following table shows the City-staff positions and consultant fees
allocated to the Districts for Fiscal Year 2016/17.
FREQUENTLY ASKED QUESTIONS
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Department City Staff Title/Position or Description Amount Allocated To
General ServicesParks Maintenance Supervisor (oversees both City crews and
Contractors)$114,216 All LMDs
General Services Senior Grounds Worker (oversees City crews) 97,917 City-Maintained
General Services Senior Grounds Worker (oversees Contractors) 97,917 Contracted
General Services Maintenance Services Manager (5%) 1,622 All LMDs
General Services Admin Technician (20%) 24,157 All LMDs
General Services Services - Other Prof/Contract (8209) 8,922 All LMDs
General Services Services - Legal Advertising (8221) 6,611 All LMDs
General Services Utility Worker 8,336 City-Maintained
Financial Services Maintenance District Admin (New Position) 103,536 All LMDs
Financial Services Resource Admin Tech (20%) 13,244 All LMDs
Financial Services Temporary Employees 11,680 All LMDs
Financial Services Financial Analyst I (5%) 4,320 All LMDs
Financial Services Financial Services Manager (15%) 29,292 All LMDs
General City OverheadCity Manager, City Council, City Clerk, City Treasurer, etc…
(from Capital Assessment Management Plan)61,213 All LMDs
Consultant Fees Original Contract (One-time cost) – NBS 100,000 All LMDs
Consultant Fees 1st Amendment (One-time cost) – NBS 35,000 All LMDs
Consultant Fees 2nd Amendment (One-time cost) – NBS 87,960 All LMDs
Consultant Fees REGIS (GIS consultant) 20,000 All LMDs
Consultant Fees 2016/17 District Administration Fees - NBS 59,934 All LMDs
General Services Reduction for portion allocated to the CFDs (57,402) All LMDs
Financial Services Reduction for portion allocated to the CFDs (112,434) All LMDs
Total $716,041
What is the breakdown of the Administrative Costs
allocated to Districts maintained by City Staff, contractors
and HOA?
FREQUENTLY ASKED QUESTIONS
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Maintained by
City
Administrative
Fees
Consultant
Fees
Total
Administrative
Fees
Credit for
Consultant
Fees Paid from
Surplus Funds
2016/17 Total
Administrative
Fees Levied to
Parcels
City Staff $134,909 $67,122 $202,031 ($4,107) $197,924
Contractor 223,436 202,250 425,686 (170,961) 254,725
Self-Maintained/HOA 3,000 2,928 5,928 0 5,928
Subtotal $361,345 $272,300 $633,645 ($175,068) $458,577
Waterways/MAD 4 51,802 30,594 82,396 0 82,396
Total $413,147 $302,894 $716,041 ($175,068) $540,973
How were the Administrative Costs and Consulting Fees
allocated to the Districts?
The City Administrative Costs were spread as a percentage of each
District’s total maintenance costs.
For positions only allocated to Districts maintained by either City crews or
contractors, those costs were spread to the applicable Districts based on
their respective total maintenance costs.
The Consultant Fees were spread as a percentage of each District’s total
maintenance costs.
The 2016/17 District Administration Fees were spread as follows: Districts
with less than 300 parcels - $950/each, Districts with more than 300
parcels - $1,500/each, plus an additional $26.00 to all Districts for the
reimbursement of consultant travel/other expenses.
FREQUENTLY ASKED QUESTIONS
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What is the contingency shown in the 2016/17 budget and
how was it allocated to some of the Districts?
The contingency was included to offset any additional unforeseen
maintenance/utility costs. These funds can be used to towards
maintenance, replacement of improvements, or utilities.
The contingency was calculated as 10% of the total maintenance costs.
No contingency was calculated for Districts requiring a subsidy from the
City.
LMD 31 (Rancho De La Rosa) was allocated an additional $8,500 under
contingency to replace mailbox clusters within the District.
FREQUENTLY ASKED QUESTIONS
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What are the Inter-District transfers shown in the 2016/17
budget and allocated to LMD 39 (Promesa & Sueno - DR
Horton) and LMD 46 (Daily Ranch)?
At the formation of LMD 46, the assessment engineer determined that
properties in LMD 46 received a special benefit from a neighboring park in
LMD 39.
The formation assessment engineer determined that an Inter-District
transfer be made annually from LMD 46 to LMD 39 to recognize the
special benefit conferred on properties within LMD 46 from LMD 39 park.
The formation Engineer’s Report calculated the annual Inter-District
transfer from LMD 46 to be 51.78% of the LMD 39 park maintenance
costs.
FREQUENTLY ASKED QUESTIONS
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How do the 2016/17 assessment levies compare to last
year’s levies?
The 2016/17 levies decreased or remained the same for all but three (3)
Districts.
• LMD 27 (Rose Island) – higher than last year’s due to levying rate lower
than maximum allowable in prior years resulting in annual deficits.
• LMD 29 (Mercy Charities) – higher than last year’s due to levying rate
lower than maximum allowable in prior years resulting in annual deficits.
• LMD 31 (Rancho De La Rosa) – higher than last year’s due to
contingency and an additional $8,500 for mailbox cluster replacement.
FREQUENTLY ASKED QUESTIONS
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Maintained by
2015/16
Total Levy
2016/17
Total Levy
City Staff $224,092 $228,584
Contractor 2,146,886 1,123,440
Self-Maintained/HOA 2,327 3,249
Total $2,373,305 $1,355,273
• New procedures now in place for inspecting and managing
District maintenance activities.
• Senior Grounds Worker positions have a daily schedule of
Districts to inspect, including:
• Inspector and contractor perform inspection on scheduled Districts.
• Observations are recorded in Daily Report(s) and a copy provided to
contractor for action.
• Deficient items and follow-ups on agreed timeframes with contractor to
ensure compliance.
• Interaction with residents to ensure all questions and concerns are
addressed as necessary.
• At end of each month the inspector and contractor review maintenance
performance for the District prior to approving payment of invoices.
• Contractors have been notified that any identified deficiency
not cured by end of month will be deducted from payment.
TRACKING OF MAINTENANCE WORK AND OVERSIGHT
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• Submit levies to the County (first week of July).
• Recruit Special Districts Administrator (job re-posted 5/31/2016).
• Review of historical administrative fees charged to Districts.
• Begin community outreach for Districts with insufficient assessments to
form new higher rate replacement districts.
• Re-bid all maintenance contracts to include all authorized
improvements and use new base/alternate services contract format.
• Obtain cost estimates for maintenance work on City-maintained
Districts.
• Capital improvement upgrades for Districts with surplus funds.
• Transfer of exterior improvements to City.
• Based on re-bids, cost estimates for City-maintained, and transfer of
exterior improvements, determine if existing assessments are sufficient
to fund interior improvements.
• If replacement districts not approved, reduce service level to match
existing assessments (interior improvements).
NEXT STEPS
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QUESTIONS?