20040913 - san diego mad formation handout

8/2/2019 20040913 - San Diego MAD Formation Handout

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S:\OSP\Open Space\MAD Business Management\Administration\Admin Guide\MAD Formation Information Handout.doc

City of San DiegoPark and Recreation Department

Open Space Division Maintenance Assessment Districts

Commonly Asked Questions about Maintenance Assessment Districts

This document answers the following questions:

1. What is a Maintenance Assessment District?2. What kinds of special benefits do MADs pay for?3. How are MADs Formed?4. What is the Law concerning MADs?5. How long can it take to set up a MAD?6. What are the steps to form a MAD?7. What information is required on a petition?

8. What are the criteria to form a MAD?9. What is a MAD Citizen Advisory Committee?10.How are assessment amounts determined?11.How are Special and General Benefits Determined?12.What does the City contribute to a MAD?13.What is the MAD Management Fund?14.Who is the Grounds Maintenance Manager (Contract Inspector)?15.What is a prudent operating reserve?

1. What is a Maintenance Assessment District (MAD)?

A MAD is legal mechanism by which property owners can vote to assess themselves to pay forand receive services above-and-beyond what the City normally provides. This above-and-beyond service level is called a special benefit. What the City normally provides is called thegeneral benefit. In the past, MADs were also known as Landscape Maintenance Districts(LMDs) or Lighting and Landscape Maintenance Districts (LLMDs). Because many districtsinclude more than landscaping and lighting, the name was changed to better represent the natureof the districts.

The purpose of a MAD is to finance special benefit services, including installation ormaintenance of open space, street medians, rights-of-way, mini-parks, joint use athletic fieldsabove and beyond what the City would otherwise provide, ponds, street lighting and/or

landscape uplighting, security, flood control, and/or drainage. These special benefit services areprovided at a level over and above the standard City general benefit level.

2. What kinds of special benefits do MADs pay for?

MADs usually pay for maintenance services but can also pay for construction/installation inlimited circumstances.


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Maintenance Services

MADs are usually used to provide funding for higher levels of maintenance services in thepublic right-of-way, including:

Landscape Maintenance (medians, rights of way, slopes, green belts, mini-parks)

o Irrigationo Fertilizationo Weedingo Pruningo Pest controlo Tree planting, trimming, and removalo Plant replacemento Turf mowing/edging

Hardscape Maintenance

o Sweeping and weeding of hardscape medianso Cleaning of curbs/gutterso Removal of graffitio Maintenance of street benches

Open Space Maintenance (safety tree trimming and removal, and litter removal);

Street Sweeping services for medians or rights of way that exceed what the City provides

(in addition to once per month on rights of way only)

Street Light Maintenance for light fixtures which exceed what the City provides (refer tothe Citys Street Design Manual for more information)

o Energy Costso Light Bulb and Damaged Post Replacemento Graffiti Removal

Uplighting on median and right of way landscaping

Litter Removal

Sidewalk Steam Cleaning

Sign Maintenance

Banner Installation/Removal


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Seasonal decoration installation/removal

Brush Management Services in addition to those provided by the Citys BrushManagement Unit

Some of the services MADs do not pay for include:

Maintenance of slopes which cannot be seen from roadways

Retaining walls

Clean water retention basins

Landscaping along private property without an easement

Construction Projects

A MAD may be used to provide funding for construction/installation on a limited basis. A few

existing MADs currently fund constructing or installing improvements in a District (including ElCajon Boulevard, North Park, and Talmadge). Most of the assets maintained by MADs areinstalled by developers or with Community Development Block Grant (CDBG) or FacilitiesBenefit Assessment (FBA) funds. Assessments to fund construction/installation are limited tofive years for landscaping, statues, fountains and lighting; and to 30 years for acquisition ofparkland or open space land and park and recreation improvements and maintenance.

3. How are MADs Formed?

By Developer

A MAD may be formed at the time a new subdivision is built. The developer is usually the onlyproperty owner, so the developer determines the scope of services to be provided. Sometimes,the developer is required to install certain assets as part of the Development Permit. Other times,the developer wants to install certain assets in order to make the development more marketable.Either way, the City requires the developer to sign a Landscape Maintenance Agreementguaranteeing to maintain the assets until maintenance responsibility can be turned over to aHomeowners Association, MAD, or other entity. The developer pays the required DistrictFormation costs (independent Assessment Engineers Report and balloting) and constructs all ofthe assets. The scope of services of the MAD is limited to maintaining the assets. AnAssessment Engineer determines which properties benefit from maintenance of the assets, andapportions a share of the cost of maintenance to each parcel based on the benefit it receives.

Prospective buyers of the property are informed of the existence of the MAD as a line-item ontheir property tax bill.

Developers should have the following items to engineer the formation of a new MaintenanceAssessment District (MAD):

1. Map showing the proposed boundary of the proposed district.


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2. Community Plan.

3. Latest approved planning or final development documents.

a.

Specific Plan or PRD documentb. Tentative Subdivision Mapc. Final Subdivision Map

4. Current development plan if other than approved plans, including:

a. Density shiftsb. Anticipated plan amendmentsc. Reduction of density

5. Development phasing plans.

6. Inventory of landscape or lighting assets to be maintained by the MAD.

a. Map showing location and types of assets to be maintainedb. Quantity of assets, by type, to be maintained (square foot or acre areas, number of

lights, etc.)c. Construction plans for specific improvements

By Community

If the community is already developed when the MAD is proposed to be formed, DistrictFormation costs are either funded by (1) Community Development Block Grants (CDBG) or (2)contributions from some of the benefiting property owners or developers, usually with theprovision that if the ballot passes, the front-money is returned to the originator from the firstyears assessments. Community members advocating the MAD usually meet frequently with thePark and Recreation Department and the Assessment Engineer to identify a scope of services andresulting assessment amount, which the community members believe will get a favorable resultin a ballot of all assessable property owners.

A third mechanism to fund MAD formation costs is the MAD Formation Fund, which wasapproved in the Fiscal Year 2003 Annual Budget. An allocation of $150,000 for this purpose wasencumbered during Fiscal Year 2004 in the Environmental Growth Fund (EGF). It is anticipatedthat the City Council will review and approve eligibility criteria for communities that wish toutilize this fund during the second quarter of Fiscal Year 2005. The fund will pay for initialformation costs; it will be repaid once the assessments begin. Community members advocatingfor the MAD usually meet with the Park and Recreation Department or the Community andEconomic Development staff and the Assessment Engineer to identify the scope of services andresulting assessment amount that will be assessed to property owners who will vote for or againstMAD formation.


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4. What is the Law concerning MADs?

MADs are authorized by the State of California and provided for in the Landscape andLighting Act of 1972 (Part 2 of Division 15 of the California Streets and Highways Code),

applicable provisions of Proposition 218 (Article XIIID of the California Constitution) andprovisions of the San Diego Maintenance Assessment District Ordinance (Division 2,Article 5, Chapter VI beginning at Section 65.201 of the San Diego Municipal Code). Inaddition, specific MAD balloting procedures are codified under State Senate Bill 919 and StateSenate Bill 1477. Finally, City Council Resolution R-288830 identifies that the City will votein favor of any MAD ballot process for parcels it owns. Under the provisions of these laws, theCity can assess properties based on the amount of benefit each property will receive. Theauthority to levy assessments is obtained by City Council resolution each year as part of theannual update process.

Balloting

A ballot process is required to form all MADs. This is not part of an Election Day ballot. Everyaffected property owner receives a ballot in the mail at the address on record with the CountyAssessor, and the property owner returns the ballot by mail. City Council authorizes going toballot, and if a weighted majority of the ballots received by the City Clerk favor Districtformation, City Council authorizes the levy and the District is formed with the scope of servicesidentified in the ballot. The scope of services is memorialized in the Assessment EngineersReport. A weighted vote is one where the vote of a property owner whose assessment will be$2 counts twice as much as the vote of a property owner whose assessment will be $1. Nomatter how many or few property owners vote, if over 50% of the weighted votes received are infavor, the District can be formed.

5. How long can it take to set up a MAD?

Normally the process takes 5 to 10 months to establish and ballot a MAD. The City has anannual August 10th deadline with San Diego County to include MAD assessments on the annualproperty tax enrollments. To meet this deadline, the districts Assessment Engineers Reportmust be ready for City Council review by March 15th each year, and the City Council mustapprove that report by April 15th. All MAD ballot processes should be completed by July 1st ofeach year to allow for the inclusion of the MAD on the coming years property tax enrollment.

6. What are the steps to form a MAD?

1. The developer or interested community representatives/property owners (communitycontacts) initiate contact with the City of San Diego/ Park and RecreationDepartment/Open Space Division/Maintenance Assessment Districts Program (Citystaff) at (619) 533-6778 to express interest in learning how to form a MAD. Developeror community contacts meet with City staff to discuss the petition requirements, potentialdistrict boundaries, maintenance areas, services that can and cannot be included,


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engineering information, costs of forming a district, and assessment amount. (Note: Theformation of any proposed commercial MADs to be managed by a non-profitorganization pursuant to San Diego Municipal Code Sections 65.0201 et seq. is handledby the Community and Economic Development Department.)

2.

Developer or community contacts meet with City staff to discuss the petitionrequirements, potential district boundaries, maintenance areas, services that can andcannot be included, engineering information, costs of forming a district, and range ofpotential assessment amounts.

3. Developer or community contacts deliver a petition to City staff, signed by at least 30%of the property owners in the proposed district, indicating the area owners desire to payan estimated assessment amount for specified benefits. A petition is required for use ofthe Maintenance Assessment District Revolving Fund. In accordance with the CouncilPolicy, the 30% signature requirement is achieved through the number of actual parcels,not by the potential weight of one parcel against another. Since MAD formation costs canrange between $10,000 and $65,000, community support for the creation of such adistrict is paramount. Community advocates may wish to publicize a certain assessmentamount, but the actual assessment amount is not calculated by the Assessment Engineeruntil Step #7.

4. City staff coordinates a meeting with the developer or community contacts, City staff,and an Assessment Engineering Consultant to discuss details of the proposed district.

5. Assessment Engineer provides a cost estimate for district engineering and balloting forapproval by the developer or community contacts. Upon approval, City staff request adeposit from developer or community contacts to cover formation costs so that theAssessment Engineer can begin work. Without a deposit, the assessment districtformation process cannot proceed. Aside from the MAD Formation Fund, there are notsufficient funds available for the City to finance MAD formations.

6. Developer or community contacts inform City staff when they secure funds to pay forrequired report by Assessment Engineer and balloting (usually $10,000 to $65,000).

7. Developer or community contacts provide detailed information about the location andscope of services being requested. City staff, in consultation with formation advocatesand developers (if applicable), calculates the annual cost estimates. The AssessmentEngineer allocates cost to parcels based on benefits received and prepares proposedboundaries and corresponding area of benefit based on the extent of the improvements.An estimate of the cost per benefiting unit (i.e., assessment rate per household) would becalculated by the Assessment Engineer at this time.

8. City staff coordinates a meeting with the developer or community contacts and theAssessment engineer to review preliminary Assessment Engineers Report. Variousiterations of the report, community meetings, and discussions about the levels of service,extent of improvements, proposed boundaries, and assessment amounts occur at this time.


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9. Assessment Engineer delivers final Assessment Engineers Report to City staff fordistribution to developer or community contacts and for inclusion with the Request forCity Council Action to set a hearing date to hold a public hearing, authorize mailing theballots, and set a final hearing date.

10.City staff mails a ballot to each assessable property owner, as listed in the most recentcertified County Property Tax Roll, a minimum of 45 calendar days prior to the finalhearing date.

11.City Clerks Office receives ballots, which are kept sealed until after the close of the finalpublic hearing. Then City Clerk presents district balloting result to the City Council,which may be at the same or next scheduled City Council meeting. City Council receivesthe ballot results and takes action to either approve the district, Engineers Report and theassessment levy or abandon the district based on the ballot results. The earliest a failedballot can be reballoted is one year.

12.City staff prepares annual enrollment and delivers it to the County Assessor to beincluded on Property Tax statements to property owners beginning with the Decemberproperty tax bill after the August 10th enrollment.

For more information, visit the Citys web page at http://www.sandiego.gov/park-and-recreation/general-info/mad.shtml.

7. What information is required on a petition?

The petition should contain the property owners name, address, parcel number (commonly

referred to as the Assessors Parcel Number or APN), and signature. The form may look likethis:

READ BEFORE SIGNING

Petition for Maintenance Assessment District Proceedings

To: City of San Diego

Park and Recreation Department, Open Space Division

1. We, the undersigned, are the property owners of land within the area shown on the map

attached as Exhibit A and made a part of this document.

2. We petition you to undertake proceedings for the formation of a Maintenance AssessmentDistrict, pursuant to the Maintenance Assessment District Ordinance.

3. The district is to be known and designated as the:


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______________________________________________________________________________

4. The undersigned hereby certify under penalty of perjury that they are the owners of record ofthe property as identified below:

8. What are the criteria to form a MAD?

The following criteria must be addressed prior to consideration for inclusion into theMaintenance Assessment District:

Improvements to be maintained by the MAD must meet City standards, which includesadherence to the following documents prior to installation:

o Standard Specifications for Public Works Constructiono City of San Diego Standard Drawings and the Consultants Guide to Park Design,

Landscape Technical Manualo Rights-of-Wayo Open Space Landscaping Standards

City standards are required to ensure that plant material, infrastructure, and systems willlast for the longest period possible.

If applicable, the Developer will provide a two-year extended maintenance periodfollowing the initial inspection and approval of the landscaping and irrigation by the Cityof San Diego Park and Recreation Department/Open Space Division/MaintenanceAssessment District staff.

All landscape maintenance easements must be recorded prior to the commencement ofthe extended maintenance period.

A permanent delineation, such as a mow curb, between private and public improvementsmust be installed.

Date

Property OwnersName and Mailing

AddressAssessors

Parcel Number Signature

- - -

- - -


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The Boundary Map and Assessment Diagram for the District are to be on file in theMaintenance Assessment Districts/Open Space Division of the Park and RecreationDepartment.

Maintenance Assessment District improvements as identified and included in the

Assessment Engineers Report submitted to the City in compliance with the requirementsset forth in Proposition 218 will show the Separation of General and Special Benefits.

The engineering construction drawings which detail the location and nature of theimprovements will be on file in the Maps and Records Division of the City Engineeringand Capital Projects Department Field Engineering Division.

9. What is a MAD Citizen Advisory Committee?

Property owners within each MAD are entitled to meet with Park and Recreation Departmentstaff to discuss the operations of the MAD and finances of the MAD. Normally these meetings

are conducted by a citizen advisory committee, which may be a subcommittee under a TownCouncil, Community Council, Planning Committee, or Recreation Committee. The advisorycommittee may also be independent, depending upon the nature of the community in which it islocated. In accordance with the Municipal Code, at least one meeting a year is dedicated todiscussing the upcoming years budget, and those MADs that encompass an entire communityplanning area are required to report to that communitys officially recognized planningcommittee. Park and Recreation staff will attend each citizen advisory committee meeting.

10. How are Assessment Amounts Determined?

Each Maintenance Assessment District is governed by the maximum authorized assessment andcost indexing provisions contained within the Assessment Engineers Report. The maximumauthorized assessment is determined individually for each district as a result of an analysis by anindependent assessment engineer based on the scope of maintenance amenities desired. TheAssessment Engineers Reports for Park and Recreation Department-managed MADs areavailable for each district on the Citys web page, http://www.sandiego.gov/park-and-recreation/general-info/mad.shtml.

Assessment Methodology

For the purpose of determining assessment amounts, identifying the general and special benefitsassociated with the improvements and/or services is essential since only special benefits areassessable. Special benefits are those particular and distinct benefits over and above general

benefits provided to the public at-large. A more detailed discussion of the general benefitsprovided by the City is provided in the What Does the City Contribute to a MAD? section.

Assessments are to be apportioned to properties based on the reasonable cost of the proportionalspecial benefit conferred to the property per the California Constitution Article XIIID(Proposition 218). The allocation of Maintenance Assessment District costs are determined by acertified engineer using an apportionment methodology along with estimated maintenance andadministration cost as determined by the Park and Recreation Departments Maintenance


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Assessment District staff. The method used for measuring special benefit should considermeasurable factors which describe and reflect the features of the property. These factors mayinclude usable parcel area, number of residential units, building square footage, parcel frontfootage, property trip generation, current land use and location of benefit improvements, etc.

The method of apportionment used in determining benefit is prepared by a certified engineeringconsultant. Apportionment methodologies are commonly based on one or more property-relatedattributes, such as:

o Parcel Area: benefits apportioned based on relative parcel size (acreage or net usableacreage).

o Land Use: land use-based apportionment factors reflective of relative intensity, usage, orother benefit aspect.

o Dwelling Units: residential-based (dwelling unit) measure for residential and non-residential land uses.

o Parcel Frontage: linear measure of property frontage along improvement and/ormaintenance corridor (linear front feet).

o Building Area: benefits apportioned based on total building square footage (useful forvertical, multistory development areas).

o Other: any other suitable means of quantifying proportional special benefit.

Selection of an appropriate apportionment methodology is done on a case-by-case basis by acertified Assessment Engineer who considers the improvements, services, and othercharacteristics of the proposed district. Most of the districts managed by the City of San Diegoare based on Equivalent Benefit Unit (EBU), which provides for a baseline of 1.00 EBU for eachsingle family dwelling unit. In the EBU methodology, an apartment or condominium unit is lessthan one EBU, and commercial/industrial properties are more than one EBU. Districts that have

linearly spaced improvements (such as street lights, sidewalk cleaning, and litter removal) mayhave been engineered using a Linear Front Foot (LFF) methodology. Other units of assessmentmay include Lot Square Footage (LSF), Building Square Footage (BSF), Acres, Net Acres, andEquivalent Dwelling Unit (EDU).

To determine the type of methodology used in a particular district, refer to the AssessmentEngineers Report at http://www.sandiego.gov/park-and-recreation/general-info/mad.shtml.

Cost Indexing Factors

Certain districts are entitled to a cost-indexing factor related to the San Diego Consumer Price

Index Urban (SD-CPI-U) as reflected in the Assessment Engineers Report. A cost-indexingfactor allows a district to raise its assessments in order to keep pace with inflation and the risingcost of living without a formal ballot process. Since 1998, the City has used the SD-CPI-U forcalculating cost indexed assessments. The SD-CPI-U is prepared by the U.S. Bureau of LaborStatistics (http://www.bls.gov/), which tracks various local and regional consumer indices.

The calculation is based on an annual comparison of the latest SD-CPI-U figures available before


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preparing the proposed budget and annual updates to the Assessment Engineers Report. Secondhalf values are the most representative of the fiscal year cycle (July 1st to June 30th), as opposedto the calendar year cycle. The figures representing the fiscal year cost indexing amounts sinceFiscal Year 1998 are shaded in the following table:

Calendar

Year

Fiscal

Year

First

Half

Second

Half

Annual

Increase

1996 FY 1998 2.24% 2.92% 2.61%

1997 FY 1999 2.44% 1.11% 1.74%

1998 FY 2000 1.41% 2.50% 1.95%

1999 FY 2001 3.43% 3.64% 3.54%

2000 FY 2002 4.72% 6.84% 5.79%

2001 FY 2003 5.73% 3.55% 5.03%

2002 FY 2004 2.95% 3.95% 3.07%

2003 FY 2005 4.14% 3.35% 3.74%

In recently formed Maintenance Assessment Districts (such as Black Mountain Ranch South,Linda Vista Community, Park Village, and Torrey Highlands), the cost indexing factor has beenthe San Diego Urban Consumer Price Index plus a percentage not to exceed a certain amount(usually between two and five percent). This allows each community to raise its assessments bythe regular Consumer Price Index percentage plus an additional two to five percentage points.For example, a district with the authority to raise assessments by the San Diego Urban ConsumerPrice Index plus 3% in Fiscal Year 2005 would be authorized to raise assessments by 3.35% plus3% for a total of 6.35%. This increase may be made upon consultation between City staff.

11. How are Special and General Benefits Determined?

The State Assessment Acts require that the costs of maintaining improvements be apportioned tothe lands in the district in proportion to the benefits received. In establishing benefit andapportioning maintenance costs, certain general guidelines may be used to assure conformitybetween similar districts and between similarly benefited properties within a district. Theseguidelines apply to the areas of benefit, allocation of costs and apportionment of assessments.

Areas of Benefit

The area of benefit is delineated by the Districts boundaries and includes properties whichbenefit from the maintenance of improvements in the district. Areas of benefit may be either

considered general benefit or special benefit depending on the level of services provided tothe community at large.

General benefit is defined as the common standard of services provided to the community suchas safety lighting, street median maintenance, open space maintenance, regional parkmaintenance, trash pickup and street cleaning. The City pays for these services either through


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direct charges or contributes funds to a district using a common formula such as an amount persquare foot in the case of street medians or amount per acres in the case of open space.

Special benefit means a particular and distinct benefit over and above general benefits conferredon real property located in the district or to the public at large. Special benefits conferred to the

property owners of a district may include services for landscape and streetscape maintenance,slope maintenance, community park maintenance, sidewalk cleaning and repair, plant and treeirrigation, flood control and drainage systems, and mid-block and decorative lighting. Servicelevels and frequency of standard services may be increased at the wishes of the community toconfer a special benefit or higher level service than to the public at large.

If a Maintenance Assessment District is not approved, the enhanced level of services will not beprovided. The City Council has resolved that no General Fund revenues will be used to provideservice levels beyond the standard level of services provided in all areas of the City.

12. What Does the City Contribute to a MAD?

Under the guidelines of California Constitution Article XIIID (Proposition 218), the City isobligated to contribute funds for services that would have otherwise been rendered if the districtwere not in place, known as the general benefit. This is the amount the City spends for thesemaintenance services in similar areas throughout the City. In accordance with this standard, theCity contributes a general benefit for certain kinds of maintenance activities:

Type of Maintenance Activity Maintenance Funding Source

Median Maintenance Gas Tax

Open Space Maintenance Environmental Growth Fund

Population-Based Park Acreage General Fund

Library Grounds General Fund

Fire Station Grounds General Fund

Street Sweeping Street Division Operating Fund(in-kind contribution)

Street Light Maintenance Street Division Operating Fund(in-kind contribution)

Median Maintenance

The Park and Recreation Department maintains 83 street medians as part of the Gas Tax MedianProgram. These medians are scattered throughout the City and are generally not located within aMaintenance Assessment District. The program provides for the landscape maintenance ofmedian improvements along City streets within the public rights of way in order to keep thestreets and facilities in a safe and operable condition. The required maintenance includescleaning, sweeping, repairs to curbs and gutters, litter and weed removal, tree maintenance,


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irrigation installations and repairs, planting, mowing, and edging of curbs and sidewalks. Thisactivity is funded by Gas Tax, and for Fiscal Year 2004, $610,303 was allocated to this program.

Each Maintenance Assessment District that maintains medians is entitled to a contribution ofGas Tax funds according to the following schedule based on the total cost of the Gas TaxMedian Program divided by the total square footage of hardscape and landscape. Thecontribution amount was increased by the San Diego Consumer Price Index (SD-CPI-U) of3.35%.

FY 2004 FY 2005

Hardscape $0.0130 per square foot $0.0134 per square foot

Landscape $0.1800 per square foot $0.1860 per square foot

Open Space Maintenance

Those Maintenance Assessment Districts that maintain open space are entitled to a contributionfrom the Environmental Growth Fund. This allocation is based upon the previous years actualexpenditures for open space and brush management within the Park and Recreation DepartmentOpen Space Division. Unlike the Gas Tax contribution, the Environmental Growth Fundallocation was not increased by the Consumer Price Index.

FY 2004 FY 2005

Open Space $26.63 per acre $26.63 per acre

Population-Based Parks Maintenance

Maintenance Assessments Districts are typically used to provide funding for higher levels ofmaintenance services in public rights-of-way and on public property. In some cases, MADsprovide for landscape and hardscape maintenance of City parkland, including irrigation,fertilization, weeding, pruning, pest control, dead tree removal, plant replacement, litter removal,turf mowing/edging/fertilizing, sweeping, weeding, removal of graffiti, and other park areamaintenance.

If the parkland is determined to be a population-based park in accordance with the Citys

Progress Guide and General Plan, the MAD must be reimbursed by the General Fund for thecost of maintenance. These parks may have additional funds allocated to them from MADassessments if authorized by the Assessment Engi neers Report pursuant to the separation ofgeneral and special benefits identified within the report.


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Calculation of Actual Expenditures for Cost per Park Acre

The General Fund reimbursement amount is based on the previous years actual expenditures forparkland maintenance, excluding overhead, utilities, and capital improvements. It is calculatedevery September upon release of the prior year accounting reports. This actual expenditure is

divided by the total number of parkland acres managed by the Park and Recreation Department,thus creating a cost per acre figure that may be used to determine reimbursements. The actualexpenditures per park acre are:

Fiscal Year 2000 $3,841



These figures provide the foundation for the determination of the actual General Fundreimbursement.

Procedure to Identify Actual Park Expenditures

At the end of each fiscal year, the Park and Recreation Department reviews actual expendituresin each of its activities to determine the appropriate level of reimbursement required toMaintenance Assessment Districts for their oversight of any General Fund parks. To do this,City staff identifies all costs associated with park maintenance, including adjustments to acreageand inventory, to determine the average maintenance cost per acre for general fund maintainedparks.

Certain items are generally excluded in the calculations, including indirect or support costs;

maintenance of the regional downtown and open space parks; water, sewer, gas, electric, dataprocessing and phones; and encumbrances for prior year contracts. These charges are omittedfrom the reimbursement calculation because of the nature of costs incurred by the MaintenanceAssessment District. The General Fund reimbursement covers the cost of the landscapecontractor and Grounds Maintenance Manager to maintain parkland. Since the other costs aredirectly billed to the City, they are not included in the calculation.

City staff documents any exceptions in the calculation of the cost per acre of parkland. Foractivities that include both direct turf maintenance costs and other functions, each Park andRecreation Department Division develops and documents the criteria for extracting theappropriate expenses. For example, building maintenance costs must be extracted from the

landscape maintenance activities if those building costs include sites other than outdoorrestrooms.

Current Parkland Budgeting Policy

The general policy for budgeting the parkland reimbursement has been to use the two years inarrears parkland actual expenditure figure. The parkland reimbursement budget for Fiscal Year2003, for example, was based upon the actual expenditures per acre for Fiscal Year 2001. A


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Consumer Price Index or a set percentage may be applied to this calculation to account forinflation and other variables. Such an increase is not incorporated into the Final Fiscal Year 2005Budget.

Budgeted Reimbursement per Park Acre:


Fiscal Year 2003* $4,356

Fiscal Year 2004** $4,356Fiscal Year 2005 $4,356

* For Fiscal Year 2003, the transfer amount was $4,356, which reflects an inflation of 5.22%over the actual expenditure of $4,140 in Fiscal Year 2001. This amount was based upon actualincreases in landscape maintenance contracts and other expenditures and the SD-CPI-U percalendar year.

** For Fiscal Year 2004, the General Fund contribution for parks is based on the actual

expenditures for parkland maintenance in Fiscal Year 2001 rather than Fiscal Year 2002. Thereimbursement amount was $4,356, which reflects an inflation of 5.22% over the actualexpenditure of $4,140 in Fiscal Year 2001 and 6.58% over the actual expenditure of $4,087 inFiscal Year 2002.

In the annual budget document, the Park and Recreation Department performance measuresindicate the proposed cost per acre for each budgeted year based on the Park and RecreationDepartments calculations of each park area. These figures take the budgetedcost to maintain anacre and divide that figure by the total number of acres. Since these numbers are not based onactual expenditure data, they are currently not used for the purpose of calculating the cost tomaintain parkland.

Retroactive Reimbursement

The City provides for reimbursements of up to three years in arrears for parkland acreage thathas been maintained by a Maintenance Assessment District when errors in previous calculationsare discovered. Various reimbursements that have already occurred are detailed in the FiscalYear 2002, 2003, and 2004 budget documents.

Library Grounds Maintenance

For those Maintenance Assessment Districts that maintain library grounds, the General Fundcontributes an amount based on the previous years actual expenditures for the Library

Departments grounds maintenance activities, excluding overhead, utilities, and capitalimprovements. At the end of each fiscal year, the Library Department in conjunction with Parkand Recreation reviews actual expenditures in its grounds maintenance activities to determine theappropriate level of reimbursement required to Maintenance Assessment Districts for theiroversight of any library facility grounds maintenance. The General Fund/Library Departmentcontributes $4,332 per acre in Fiscal Year 2005.


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Fire Station Grounds Maintenance

For those Maintenance Assessment Districts that maintain fire station grounds, the General Fundcontributes an amount based on the previous years actual expenditures for the Fire-RescueDepartments grounds maintenance activities, excluding overhead, utilities, and capitalimprovements. At the end of each fiscal year, the Fire-Rescue Department in conjunction withPark and Recreation reviews actual expenditures in its grounds maintenance activities todetermine the appropriate level of reimbursement required to Maintenance Assessment Districtsfor their oversight of any fire station facility grounds maintenance. The General Fund/Fire-Rescue Department contribution is calculated by averaging the contracted requirements at eachfire station. During Fiscal Year 2005, no fire stations were proposed to be maintained by MADs.

Street Lighting

In accordance with the Citys Street Design Manual, the Street Division Operating Fund provides

the general benefit for safety street lights at intersections and spaced at 300-foot intervals onresidential, collector, and major streets. The Street Division Operating Fund also provides forstreet lights spaced at 150-foot intervals for those streets located within 1,320 feet of a transitstop or located within high-crime Census tracts. Since the Street Division Operating Fundprovides in-kind services to the district, the budget does not reflect the costs of the generalbenefit street lights.

The standard City street lighting fixture is full cutoff, Type III fixtures (commonly referred to ascobra overhead lights). Any other type of lighting fixture or pole is a special benefit. Page 94of the Citys Street Design Manual states, Supplemental street lighting, for: a) ornamental, b)continuous street lighting, or c) pedestrian-scale lighting purposes, shall be installed in streetlighting assessment districts.

Street Sweeping

The Street Division provides monthly street sweeping services Citywide. Any additionalfrequencies of street sweeping services (including any median street sweeping) are considered aspecial benefit. Since the Street Division Operating Fund provides in-kind services to the district,the budget does not reflect the costs of the general benefit street sweeping.

13. What Is the MAD Management Fund?

Park and Recreation Department Assessment District Management (Management) provides theCity with a cost-effective and fiscally responsible process for managing the needs of 37 of theCitys Maintenance Assessment Districts. Management responsibilities include calculating andenrolling assessments with the County Assessors Office; providing direct management support;overseeing contracts, inspections, and district budgeting; analyzing and updating budgets;processing reimbursements; issuing manual billings; providing information technology and


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communication support; and providing professional support from the City Attorneys Office,City Auditor and Comptrollers Office, and City Purchasing Agent.

In addition, the Park and Recreation Maintenance Assessment District Management Fund assistscommunities and developers in the formation of new Maintenance Assessment Districts; meets

regularly with property owners to explain how assessments are calculated and expended; andresponds to hundreds of citizen inquiries each month. These activities are undertaken whileadhering to all legal and City policy guidelines.

To ensure that all districts are paying a fair share of the Management Fund, the totalappropriations allocation method was used. This approach applies an equal percentagein thiscase an amount not to exceed 10.6% of each districts proposed budget less the cost ofmanagement and appropriated fund balanceto each districts landscape maintenance contractplus personnel, utilities, and incidental costs on the basis of total appropriation to pay for theManagement Fund costs.

14. Who is the Grounds Maintenance Manager (Contract Inspector)?In addition to oversight functions provided by the Maintenance Assessment District ManagementFund, 33 of the 37 Park and Recreation Department-managed districts (excluding Del MarTerrace, Liberty Station/Naval Training Center, and Street Light District #1) are administered bya Grounds Maintenance Manager. This position, or portion of a position, is not funded by theManagement Fund, but rather by each individual district. This position oversees, coordinates,and supervises the work of the crews of landscape contractors that maintain rights of way,medians, slopes, parks, and other areas as provided by the Assessment Engineer's Report. TheGrounds Maintenance Manager inspects the work of the landscape contractor to ensure that allareas are maintained at an appropriate level.

As the primary point of contact between the City and the community, the Grounds MaintenanceManager liaises with community representatives, who are most commonly part of a MaintenanceAssessment District citizen oversight committee. These committees are often a subcommittee ofthe Community Planning Group or the Town Council depending upon the relative boundaries ofthe District and the Community Planning Area and/or Town Council jurisdiction. Thecommittee members direct any concerns, issues, and/or complaints to the Grounds MaintenanceManager. To solve these kinds of issues, the Grounds Maintenance Manager interacts with avariety of City departments.

The Grounds Maintenance Manager also provides budget oversight to ensure that sufficientfunds are available to cover all areas of work to be performed in the upcoming years. Thisincludes the development of cost estimates for maintenance of areas, management of the contract

(including bidding for new contracts), and preparing the upcoming fiscal year budget inconsultation with the Supervising Management Analyst.

Historically, the amount of Grounds Maintenance Manager support allocated to a specific districtis based upon the amount of the landscape maintenance contract. That proportion sets a base linefor the amount of contract oversight that is required. However, many Maintenance AssessmentDistrict community oversight committees have opted for either more or less GroundsMaintenance Manager support for several reasons, including relative level of community


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involvement, complexity of the contract and/or landscape areas, capital improvement projects,and any number of issues that need to be resolved within that district.

Each year, the 37 Park and Recreation Department-managed Maintenance Assessment Districtcommunity oversight committees approve the annual budget, which includes the cost of theDistrict-specific expenses such as the Grounds Maintenance Manager to provide oversight andcontract inspection services, as well as the costs of the Management Fund.

15. What is a Prudent Operating Reserve?

It is a goal of all MADs to have a prudent operating reserve between a minimum of 10 percent ofthe operating budget and a maximum of six months of operating expenses. If the reserve is lessthan 10 percent, Park and Recreation-MAD staff will assist the community in developing anaction plan to build it back to 10 percent. When the reserve is less than 10 percent, expendituresmay be curtailed at any time, especially if the cash balance cannot cover costs.

If the Ending Balance is over 40 percent of the operating budget, an explanation is provided.Generally excess reserves are allocated for capital improvement projects or other similarexpenditures. If reserves exceed 50 percent of the operating budget and there is no specificpurpose for that reserve (or if the reserve has been carried for five years or longer), then theassessments should be lowered or eliminated (such as in the case of the La Jolla Village DriveMAD during Fiscal Year 2001) or refunded back to property owners.


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April 24, 2012

Maintenance Assessment District (MAD)Business Improvement District (BID)

South Park Neighborhood Association (SPNA)Golden Hill Neighborhood Association (GHNA)

Golden Hill Community Association (GHCA)Greater Golden Hill Planning CommitteeFriends of Balboa Park & Golf Course

Anti-MAD Community Volunteers

Verses

City of San DiegoGrater Golden Hill Community Development Corporation (GGHCDC)

These documents are related to an ongoing 17 years conflict between the Citizens

(Property owners) of the communities of SOUTH PARKand GOLDEN HILL, of SanDiego, California, battling against the employees of the City of San Diego, and the GreaterGolden Hill Community Development Corporation (GGHCDC) who dishonestly andmaliciously caused the illegal establishment of a Maintenance Assessment District over themajority objections of the Citizens [property owners]. This to specifically provide fundingand support with additional property assessments (taxes/fees) to be provided revenue to aprivet membership corporation (GGHCDC).

In 2012 the battle is continuing although the Citizens clearly and decisively won every courtcase, which ORERED a Writ of Mandate, vacating the unconstitutional and illegalgovernmental actions/proclamations establishing the Grater Golden Hill Maintenance

Assessment District (GGHMAD) for the benefit of and administration by the Greater GoldenHill Community Development Corporation (GGHCDC). As of today the City employees arecontinuing the Battle and are refusing to return the stolen monies by the government to theproperty owners.

These Documents are provided to CITIZENS to assists you in fighting the tyranny of ourGovernments uncaring Politicians, and their dishonest, officious, manipulative, bullingBureaucrats. They were obtained and provided from many sources and volunteers towhom we shall never forget their goodwill and good-works.

I recommend you to first review the following document repaired by community volunteers

to better understand what has transpired to this point in time:

20111031 - GGHCDC MAD HISTORY.pdf

I also would recommend that you contact the following Anti-MAD Points of Contact:

www.goldenhillmad.blogspot.commadmatters@cox.netwww.madenoughyet.com


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INDEX [LIST] OF RELATEDDOCUMENTS & PUBLICATIONS

19720000 - Landscaping & Lighting Act of 1972.pdf19890000 - MAP - South Park & Golden Hill.pdf

19940000 - GGHCDC Revitalization Project.pdf19951010 - GHCDC Excutive Director Report.pdf19951010 - GHCDC Revitalization Plan Community.pdf19951019 - GHCDC Boad Directors.pdf19951024 - South Park Association 01.pdf19970000 - CA Gov. Code section 53753.pdf19970000 - TAX Right to Vote Proposition 218.pdf19970609 - MAD City Resolution 288830 MAD Ballot.pdf19980608 - SD MAD MuniCode.pdf

20000614 - MAD local-light mad.pdf20000628 - GGHCDC Board Agenda.pdf20000810 - GGHCDC MAD Misc Docs.pdf20000810 - MAD GGHCDC - Kessler Letter.pdf20000901 - GGHCDC MAD Hal Tyvoll Protest Flier - Tovel.pdf20010213 - CDC Newsletter.pdf20010305 - GGHCDC MAD Reminder Letter.pdf20010330 - No GGHCDC MAD Flier.pdf20010401 - MAD GGHCDC Status Report.pdf20010401 - MAD SD Park Dept.pdf

20010403 - MAD GGHCDC Status Letter.pdf20010412 - MAD GGHCDC Letter.pdf20010425 - GHHCDC NewCity 01-10.pdf20010425 - No GGHCDC MAD Flier.pdf20010600 - GGHCDC MAD Newletter.pdf20010608 - CMADJuneNewsletter2001.pdf20010613 - MAD GGHCDC Letter - Councilmember.pdf20010623 - MAD GGHCDC Letter - Mayor.pdf20010710 - MAD GGHCDC Letter - Atkins.pdf

20020108 - MAD SD Process Ord1975.pdf20020108 - The MAD Process.pdf20020313 - No GGHCDC MAD Flier.pdf20020430 - GGHCDC $150 Council Agenda.pdf20021021 - BID GGHCDC.pdf20021029 - GH Planning Committee - GGHCDC Business Districts.pdf20021029 - GH Planning Committee - GGHCDC Community Center.pdf20021029 - GH Planning Committee - GGHCDC Joint Committees.pdf20030500 - SD Code MAD Lighting.pdf


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20040000 - SD Policy#100-21 MAD Formations.pdf20040913 - MAD Formation Handout.pdf20040913 - San Diego MAD Formation Handout.pdf20050000 - MAD BUDGETS 2004-8 v6_cedadmin.pdf20050425 - No GGHCDC MAD Flier.pdf20050622 - MAD SD Self-ManagedMAD-CityFY2006Budget.pdf20060000 - GHCDC BoardRooster.pdf

20060311 - MAD Court Rulling Greene.pdf20060318 - GHCDC ActionPlan.pdf20060401 - GGHCDC strategicPlan2006.pdf20060600 - GGHCDC eLetter3_06.pdf20060601 - SD Block Grants amendfyar07.pdf20060627 - MAD Council Meeting pmfinal.pdf20061200 - MAD FUNDING SIDEWALKS pmpchap7.pdf20070000 - FY08 MAD 06v3revenue.pdf20070000 - San Diego CityBEAT - poochPolitics.pdf20070101 - GGHCDC Self History.pdf

20070300 - GHCDC MAD SD CITY Survey.pdf20070300 - MAD North Park AER.pdf20070400 - GHCDC MAD SCI Engeneers Report-NO APPENDIX.pdf20070400 - GHCDC MAD SCI Engeneers Report.pdf20070400 - SD Developemnet services.pdf20070401 - GGHCDC MAD Tony Atkins News.pdf20070406 - No GGHCDC MAD Flier.pdf20070423 - GHCDC MAD Request Council Agenda JUNE 2007.pdf20070511 - City San Diego City GGHCDC MAD - Ohedia.pdf

20070521 - Hal Tyvoll MAD Ltr to Council.pdf20070600 - GHCDC City Grants FY07.pdf20070600 - MAD City FY08v3 CIP Budget.pdf20070607 - Plan Group juneagenda.pdf20070608 - MAD GGHCDC Letter 01 - Mayor.pdf20070608 - MAD GGHCDC Letter 02 - Aguirre.pdf20070609 - GGHCDC Meeting.pdf20070612 - Council Agenda - GHCDC MAD1.pdf20070615 - GGHCDC MAD cert of mailing_1.pdf20070615 - GGHCDC MAD cert of mailing_2.pdf

20070616 - MAD GGHCDC SD City Flier.pdf20070617 - NP News- GHCDC MAD SD CITY Advertisement.pdf20070618 - GGHCDC MAD SD City Ballot.pdf20070618 - GHCDC MAD SD CITY Letter.pdf20070619 - GHCDC MAD - SD City Opposition Consultant.pdf20070621 - Citizen No GGHCDC MAD Ltr to James T. Waring.pdf20070630 - GHCDC MAD SCI Engeneers Report-02not complete.pdf20070701 - No GGHCDC MAD Flier.pdf20070702 - Citizen No GGHCDC MAD Ltr to Toni Atkins.pdf


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20070702 - GHCDC MAD SD CITY Flier.pdf20070702 - Toni Atkins Leter.pdf20070706 - Dear Neighbor Letter - No MAD tax.pdf20070708 - MAD GGHCDC Todd Gloria TaxpayersAdvocate.org.pdf20070709 - MAD Fellow Neighbor Helpful Note.pdf20070710 - GGHCDC MAD Ben Hueso Website.pdf20070710 - GGHCDC MAD Vote No Flier.pdf

20070712 - MAD 18July07 MAD Meeting CHANGE.pdf20070712 - MAD GGHCDC City SAN Diego Parcels.pdf20070712 - NoMADTax - Gerrymandering.pdf20070716 - Neighbors Communications & Response from SD Clerk.pdf20070718 - GHCDC MAD Meeting CHANGE.pdf20070719 - SCI MAD san diego golden hill response.pdf20070723 - CA Code 549546.pdf20070723 - CA Code R28830.pdf20070723 - CA Constitution-ARTICLE 13 _Prop. 218_.pdf20070726 - San Diego Reader - GGHCDC MAD.pdf

20070726 - San Diego Reader MAD GGHCDC.pdf20070730 - MAD GGHCDC - NOT A HONEST VOTE.pdf20070800 - NP NEWS - GGHCDC MAD.pdf20070900 - NP NEWS - GGHCDC MAD.pdf20071000 - GGHCDC MAD Directory.pdf20071000 - GGHCDC MAD Oversite Committe.pdf20071100 - NP NEWS - GGHCDC MAD.pdf20071207 - GGHCDC MAD Ballots Oversite Committe.pdf20080000 - GGHCDC brochurefinal_so (3)_1.pdf

20080000 - GGHCDC MAD City Contract 2008-9.pdf20080123 - GGHCDC MAD Oversight Committee.pdf20080200 - GGHCDC MAD Oversight Committee.pdf20080200 - NP NEWS - GGHCDC MAD.pdf20080204 - GGHCDC MAD Oversight Committee.pdf20080225 - GGHCDC MAD Oversight Committee By Laws.pdf20080225 - GGHCDC MAD Oversight Committee.pdf20080317 - GGHCDC MAD Oversight Committee.pdf20080421 - GGHCDC MAD Oversight Committee.pdf20080519 - GGHCDC MAD Oversight Committee.pdf

20080519 - San Diego Reader - GGHCDC MAD.pdf20080521 - San Diego Reader - GGHCDC MAD.pdf20080600 - GHCDC MAD SCI Engeneers Report.pdf20080602 - GGHCDC MAD Oversight Committee.pdf20080616 - GGHCDC MAD Oversight Committee.pdf20080617 - San Diego Reader - GGHCDC MAD.pdf20080620 - San Diego Reader - GGHCDC MAD.pdf20080714 - GGHCDC MAD Oversight Committee.pdf20080715 - GGHCDC MAD Notice of Inviting Bid .pdf


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20080723 - San Diego Reader - GGHCDC MAD.pdf20080730 - San Diego Reader - GGHCDC MAD.pdf20080818 - GGHCDC MAD Oversight Committee Procedures.pdf20080818 - GGHCDC MAD Oversight Committee.pdf20080819 - San Diego Reader - GGHCDC MAD.pdf20080900 - GGHCDC MAD Newspaper.pdf20080915 - GGHCDC MAD Oversight Committee.pdf

20080917 - San Diego Reader - GGHCDC MAD.pdf20081020 - GGHCDC MAD Oversight Committee.pdf20081022 - San Diego Reader - GGHCDC MAD.pdf20081112 - SD 21.reporttocitycouncilfy09.pdf20081117 - GGHCDC MAD Oversight Committee.pdf20081118 - San Diego Reader - GGHCDC MAD.pdf20081215 - GGHCDC MAD Oversight Committee.pdf20081216 - MAD MAP SD City.pdf20081230 - HUD Audit - San Diego ig0991005.pdf20090105 - GGHCDC MAD Oversight Committee.pdf

20090202 - GGHCDC MAD Oversight Committee.pdf20090302 - GGHCDC MAD Oversight Committee.pdf20090303 - San Diego Reader - GGHCDC MAD.pdf20090307 - San Diego Reader - GGHCDC MAD.pdf20090323 - GGHCDC MAD sidewalk repair Letter.pdf20090406 - GGHCDC MAD Oversight Committee.pdf20090504 - GGHCDC MAD Oversight Committee.pdf20090601 - GGHCDC MAD Oversight Committee.pdf20090606 - GGHCDC MAD Oversite Committe.pdf

20090629 - GGHCDC MAD Promotions Letter.pdf20090630 - COMMUNITY DEVELOPMENT BLOCK GRANT-fy092ndreprogramming.pdf20090707 - San Diego Reader - GGHCDC MAD.pdf20090717 - San Diego Reader - GGHCDC MAD.pdf20090814 - MAD Democratic Values and Special Assessments.pdf20090918 - San Diego Reader - GGHCDC MAD.pdf20090930 - GGHCDC MAD Disband Oversight Committee Vote.pdf20100000 - FY11 SD budget MAD 14v1appendix.pdf20100203 - MAD Court Final Judgment GHAA.pdf

20100203 - MAD Court Findings Judgment GHAA.pdf20100223 - GHNA - MAD help.pdf20100324 - MAD University Avenue - uampmtgpresentation.pdf20100411 - MAD GGHCDC Illegale $732,746 Budget.pdf20100421 - San Diego Reader - CDC No Refunds.pdf20100501 - San Diego Reader - GGHCDC MAD.pdf20100600 - MAD GGHCDC.pdf20100726 - fy11ao.pdf20100831 - GHHCDC Audit.pdf


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20100913 - MAD VENDOR LOT SUMMARY 9958.pdf20101001 - GGHCDC MAD Annual Report 2009.pdf20101105 - GGHCDC Hotline Investigation 11-5.pdf20101110 - UTSanDiego.pdf20101120 - 25th Street Project.pdf20101201 - San Diego Reader - GGHCDC MAD.pdf20110000 - MAD 25th Street.pdf

20110200 - MAD Oversight Cmte agenda-Feb 2011.pdf20110415 - GGHCDC 25thFINAL-FLYER#3.pdf20110504 - GGH CPUAC.pdf20110505 - GGHCDC 25th St Project.pdf20110510 - GGHCDC MAD Farmer's Market.pdf20110517 - SD Developemnet services.pdf20110600 - FY11 SD budget 10_37.pdf20110600 - SD Planning Groups contactlist.pdf20110604 - Fed Report CDC990-ending Aug 2010.pdf20110604 - Fed Report CDC990.pdf

20110711 - GGHCDC MAD Audit.pdf20110726 - San Diego Reader - GGHCDC MAD.pdf20110900 - GHHCDC Boardmembers.pdf20110922 - COURT Appellate-Final Ruling-D057004.pdf20110922 - D057004.PDF20110922 - San Diego Reader - GGHCDC MAD.pdf20111003 - Todd Gloria & David Alvarez GGH MAD D3_D8 Memo.pdf20111004 - San Diego Reader - GGHCDC MAD.pdf20111006 - GGHCDC MAD BMurry email.pdf

20111014 - California Taxpayers Association - GGHCDC MAD.pdf20111014 - San Diego Uptown News - GGHCDC MAD.pdf20111020 - NP NEWS - GGHCDC MAD.pdf20111021 - San Diego Reader - GGHCDC MAD.pdf20111031 - GGHCDC MAD HISTORY.pdf20111031 - GGHCDC MAD HISTORY.ppt20120000 - MAD 25th Street v3schedule1.pdf20120215 - UTSanDiego.pdf20120219 - SD Planning Groups contactlist.pdf20120312 - GGHCDC MAD City Dissolution.pdf

20120329 - Property Tax Letter 2011-12.pdf20120412 - Greater Golden Hill Planning Committee.pdf20120412 - UpTown News Artical.pdf20120419 - GGHCDC Meeting Agenda.pdf20120419 - GGHCDC WebPage.pdf20120422 - Marco LiMandri - New City America.pdf20120423 - GGHCDC MAD Trash Cans.pdf20120900 - GGH Planning.pdf