2016/17 consolidated engineer’s report - oxnard on 2016/17 consolidated engineer’s report and...

Maintenance Districts

2016/17 Consolidated Engineer’s Report

Presented By: Pablo Perez, NBS

June 21, 2016

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?


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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.


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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.


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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.


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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.


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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).


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The following table shows the City-staff positions and consultant fees

allocated to the Districts for Fiscal Year 2016/17.


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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?


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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.


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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.


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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.


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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.


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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?

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