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HomeMy WebLinkAbout2017-11-28 - AGENDA REPORTS - INITIATING ANNEXATION OF PARCELS INTO LANDSCAPE MA (2)Agenda Item: 11 CITY OF SANTA CLARITA Q:° AGENDA REPORT CONSENT CALENDAR 7, CITY MANAGER APPROVAL: 1 j4 _ " DATE: November 28, 2017 SUBJECT: LANDSCAPE AND LIGHTING DISTRICT RESOLUTION INITIATING PROCEEDING, APPROVING AN ENGINEER'S REPORT RELATING TO ANNEXATIONS OF PARCELS INTO LANDSCAPE MAINTENANCE DISTRICT NO. 1, ZONES 28 AND 2008-1, AND THE STREETLIGHT MAINTENANCE DISTRICT DEPARTMENT: Neighborhood Services PRESENTER: Kevin Tonoian RECOMMENDED ACTION City Council: Adopt a resolution to approve the Engineer's Report declaring its intention to annex parcels, including the Needham Ranch Project, Master Case Nos. 16-042 (Newhall Crossings), 16- 077 (Starbucks on Newhall Ranch Road), 16-132 (Black Bear Diner), 17-165 (Eternal Valley Memorial Park), and various commercial and residential parcels into Landscape and Lighting District No. 1 Zone 28 (Newhall), Zone 2008-1 (Major Medians) and Streetlight Maintenance District (SMD) to levy assessments beginning in Fiscal Year 2018-19. 2. Adopt a resolution to initiate proceedings, make certain designations in connection with the annexation of parcels into Landscape and Lighting District No. 1 Zone 28, Zone 2008-1 and the SMD, and to levy assessments beginning in Fiscal Year 2018-19. 3. Set a public hearing for January 23, 2018, as a time and place to hear comments on this proposed action, and close the time period to receive ballots. BACKGROUND On June 24, 2003, the Santa Clarita City Council approved Development Agreement 99-002 associated with the Gate -King Industrial Park (Needham Ranch) Project. As a condition of their development agreement, Needham Ranch was required to annex into the Landscape Maintenance District (LMD) to support the local zone and median improvements and into the Santa Clarita Streetlight Maintenance District (SMD). Page 1 PacketPg. 73 In addition to the Needham Ranch Project, four development projects have also been conditioned to annex into Zone 28, Zone 2008-1 and/or the City's SMD. These projects are identified by their Master Case numbers and include No. 16-042 (Newhall Crossings), No. 16-077 (Starbucks on Newhall Ranch Road), No. 16-132 (Black Bear Diner), and No. 17-165 (Eternal Valley Memorial Park). The proposals herein would initiate Proposition 218 proceedings to annex specific parcels into LMD Zone 28, Zone 2008-1 and the SMD as reflected below: LMD Zone 28 (Newhall) Parcels identified for annexation into LMD Zone 28 include the Needham Ranch Project and Eternal Valley Memorial Park (Exhibit A). • In addition to landscape improvements required of Needham Ranch and Newhall Crossings within project boundaries, existing landscape improvements maintained within Zone 28 confer a distinct and special benefit upon these parcels. Zone 2008-1 (Major Thoroughfare Landscaped Medians) • The breakout of parcels identified for annexation includes the Needham Ranch Project, Newhall Crossings, Eternal Valley Memorial Park, Master Case Nos. 16-077 and 16-132, and parcels northwest of the Needham Ranch Project located south of Lyons Avenue and east of Valley Street (Exhibit B). The City maintains more than 46 -linear miles of landscaped medians located within every major thoroughfare throughout Santa Clarita. The presence of these landscaped median amenities confers a distinct and special benefit to all parcels identified for annexation into the Zone 2008-1. Santa Clarita SMD • Parcels identified for annexation into the Santa Clarita SMD include the Needham Ranch Project, Newhall Crossings, Eternal Valley Memorial Park, Master Case Nos. 16-077 and 16-132, parcels northwest of the Needham Ranch Project located (east and west of Valley Street), and commercial parcels located throughout the City (Exhibit C). • The City's existing Streetlight System is comprised of 16,210 Southern California Edison -owned streetlights, plus approximately 1,300 additional streetlights owned by the City, which are located throughout Santa Clarita. The presence of the City's existing Streetlight System confers a distinct and special benefit to all parcels identified for annexation into the SMD. Upon tabulation of assessment ballots, should a majority protest among all parcel owners returning ballots not exist, annexation of parcels into Zones 28, 2008-1 and the SMD would commence beginning in Fiscal Year 2018-19. Page 2 Packet Pg. 74 Santa Clarita Landscape and Lighting District No. 1 is governed by the laws of the State of California, including Article 13D of the California Constitution (Proposition 218), the Landscaping and Lighting Act of 1972, and Proposition 218 Omnibus Implementation Act. The laws prescribe specific steps to be followed to annex parcels into special districts, including the requirement for an assessment ballot process involving the owners of the parcels affected by the special district. The recommended actions are in full compliance with the requirements of Proposition 218, the Landscaping and Lighting Act of 1972, and the Proposition 218 Omnibus Implementation Act. The City Council's adoption of the Resolution to initiate proceedings and approve the Engineer's Report will commence an assessment ballot process, whereby property owners would be presented with the option to annex into the various special districts as summarized above for the City Council. Ballots would be mailed to all affected property owners no less than 45 -days prior to the Public Hearing required by State Law which is scheduled for the January 23, 2018, regular meeting of the City Council. ALTERNATIVE ACTION 1. Do not authorize annexation proceedings. 2. Other direction as determined by the City Council. FISCAL IMPACT There is no fiscal impact to the General Fund associated with this action. Costs associated with preparation of the Engineer's Report and balloting process totals $27,600, with $19,200 of these costs borne by the applicants conditioned to annex into Santa Clarita Landscape and Lighting District. Adequate funds to support the remaining $8,400 in costs associated with the preparation of this Engineer's Report were previously appropriated by City Council during approval of the Fiscal Year 2017-18 Annual Budget. ATTACHMENTS Resolution of Intent Resolution of Initiation Exhibit A: Zone 28 Exhibit B: 2008-1 Exhibit C: SMD Engineer's Report - Annexation No. 2018-01 (available in the City Clerk's Reading File) Page 3 Packet Pg. 75 RESOLUTION NO. 17- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, APPROVING AN ENGINEER'S REPORT AND DECLARING ITS INTENTION TO ORDER THE ANNEXATION OF PARCELS INTO THE CITY OF SANTA CLARITA LANDSCAPE AND LIGHTING DISTRICT, ZONE 28, ZONE 2008-1 AND THE STREETLIGHT MAINTENANCE DISTRICT, AND TAKING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH WHEREAS, the City Council of the City of Santa Clarita (City) has initiated proceedings to annex parcels into Zone 28 —Newhall and Zone 2008-1 (Zones), and the Streetlight Maintenance District (SMD) within the City of Santa Clarita Landscape and Lighting District (LLD) pursuant to the provisions of the "Landscaping and Lighting Act of 1972," being Part 2 of Division 15 of the California Streets and Highways Code, commencing with Section 22500, (Act) and in accordance with Article XIIID of the California Constitution and the Proposition 218 Omnibus Implementation Act, commencing with Section 53750 of the California Government Code, to fund the continuing costs of installation, servicing and maintenance of improvements within public rights-of-way and dedicated easements within the Zone; and WHEREAS, the boundaries of the Zones and SMD shall be as described on the map entitled "City of Santa Clarita Landscape and Lighting District — annexation of parcels into Zone 28 (Newhall), Zone 2008-1 and SMD", presented to this Council and on file with the City Clerk and incorporated herein by reference; and WHEREAS, the Assessment Engineer, Willdan Engineering, has filed with the City Clerk of the City and the City Clerk has presented to the City Council a report dated November 28, 2017, (Engineer's Report) regarding the proposed annexation of parcels into the Zones and SMD, containing the matters specified in Section 22586 of the Act; and WHEREAS, the Engineer's Report has been duly presented by the City Clerk for consideration and has been fully considered by the City Council. NOW THEREFORE, the City Council of the City of Santa Clarita, California, does hereby resolve as follows: SECTION 1. The above recitals are true and correct. SECTION 2. The Engineer's Report, including the plans, specifications, general descriptions, estimate of the cost of installation, servicing and maintenance of improvements within public rights-of-way and dedicated easements within various areas in the City (Improvements) and incidental expenses in connection therewith, the diagram and the proposed assessments, is hereby approved as filed and incorporated herein by this reference. The Engineer's Report shall stand as the report for the purpose of all subsequent proceedings under the Act and Article XIIID, except that it may be confirmed, modified or corrected as provided in the Act. Packet Pg. 76 SECTION 3. The City Council hereby finds that the public interest, necessity and convenience require the installation, servicing and maintenance of the Improvements, and this City Council hereby declares its intention to annex parcels into the Zones and SMD. The City Council hereby declares and finds the land within the boundaries of the Zones and SMD to be specially benefited by the Improvements and said adjustments. SECTION 4. The purpose of the proposed annexation of parcels into the Zones and SMD is related to Needham Ranch; development activities associated with Master Cases Nos. 16-042, 16-077, 16-132, 17-165, and; various commercial and residential parcels throughout the City. The Engineer's Report and its exhibits contain a full and detailed description of the Improvements and the maintenance thereof which are to be funded by the assessments, the boundaries of the Zones and SMD, and the maximum assessments rate and assessments upon the assessable properties in the Zones and SMD. SECTION 5. As set forth in the Engineers Report, the maximum annual assessment rate will be increased each subsequent fiscal year by the annual change in the Consumer Price Index (CPI), during the preceding year, for All Urban Consumers, for the Los Angeles, Riverside, and Orange County areas, published by the United States Department of Labor, Bureau of Labor Statistics, or a reasonably equivalent index if such index is discontinued. The actual assessment to be levied in each fiscal year will be determined by the City Council and may not exceed the maximum assessment rate without receiving property owner approval for the increase. If approved, the assessment will be levied beginning in Fiscal Year 2018-19. SECTION 6. The City Council designates Darren Hernandez, Deputy City Manager, and his designees, to answer inquiries regarding the assessment proceedings or annexation of parcels. The Engineer's Report concerning the assessment rate adjustment may also be reviewed at the office of the City Clerk, 23920 Valencia Boulevard, Santa Clarita, California, during regular business hours. SECTION 7. This resolution shall take effect immediately. SECTION 8. The City Clerk shall certify to the passage and adoption of this resolution; shall cause the same to be entered in the book of resolutions of the City, and shall make a minute of the passage and adoption thereof in the records of the proceedings of the City Council of the City in the minutes of the meeting at which the same is presented. PASSED, APPROVED AND ADOPTED this 281h day of November, 2017. ATTEST: CITY CLERK DATE: 2 MAYOR Packet Pg. 77 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the 281' day of November, 2017, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: CITY CLERK Packet Pg. 78 RESOLUTION NO. 17- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, INITIATING PROCEEDINGS FOR THE PROPOSED ANNEXATION OF PARCELS INTO LANDSCAPE AND LIGHTING DISTRICT, ZONE 28 (NEWHALL), ZONE 2008-1, AND THE SANTA CLARITA STREETLIGHT MAINTENANCE DISTRICT WHEREAS, the City Council of the City of Santa Clarita (City) desires to undertake proceedings pursuant to the provisions of the "Landscaping and Lighting Act of 1972," being Part 2 of Division 15 of the California Streets and Highways Code, commencing with Section 22500, (Act) and in accordance with Article XIIID of the California Constitution and the Proposition 218 Omnibus Implementation Act, commencing with Section 53750 of the California Government Code, to annex parcels into Zone 28 and Zone 2008-1 (Zones) and the Santa Clarita Streetlight Maintenance District (SMD) of the City of Santa Clarita Landscape and Lighting District (LLD); and WHEREAS, the boundaries of the Zones and SMD shall be as described on the map presented to this Council and on file with the City Clerk, and incorporated herein by reference; and WHEREAS, the City has approved a consulting engineer's contract with Willdan Engineering, naming Willdan Engineering as the Assessment Engineer and firm responsible for preparing the Engineer's Report, and assisting in the adjustment of the maximum assessment within the Zones and SMD. NOW, THEREFORE, the City Council of the City of Santa Clarita, California, does hereby resolve as follows: SECTION 1. The City Council proposes to annex parcels into Zone 28 (Newhall), Zone 2008-1, and the Santa Clarita Streetlight Maintenance District. The boundaries of the Zones and SMD are described as those previously established at the time the Zones and SMD were annexed into the LLD. SECTION 2. The purpose of the proposed annexation of parcels into the Zones and SMD is related to Needham Ranch; development activities associated with Master Cases Nos. 16-042, 16-077, 16-132, 17-165, and; various commercial and residential parcels throughout the City. SECTION 3. The improvements maintained within Zone 28, Zone 2008-1 and the SMD confer distinct and special benefit upon the parcels identified for annexation into Santa Clarita Landscape and Lighting District No. 1. Packet Pg. 79 SECTION 4. Willdan Engineering, an engineer registered pursuant to the Professional Engineers Act (Chapter 7, commencing with Section 670, of Division 3 of the Business and Professions Code), has been designated Assessment Engineer for the proposed annexation of parcels into the Santa Clarita Landscape and Lighting District No. 1. Willdan Engineering is hereby ordered to prepare and file an Engineer's Report for the City Council's review, consideration and adoption in accordance with the Act and the laws of the State of California SECTION 4. This resolution shall take effect immediately. SECTION 5. The City Clerk shall certify to the passage and adoption of this resolution; shall cause the same to be entered in the book of resolutions of the City, and shall make a minute of the passage and adoption thereof in the records of the proceedings of the City Council of the City in the minutes of the meeting at which the same is presented. PASSED, APPROVED AND ADOPTED this 28'h day of November, 2018. MAYOR ATTEST: CITY CLERK DATE: STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the 28a' day of November, 2017, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: 2 CITY CLERK Packet Pg. 80 0 Legend ED Annex Zone -28 Panels w GL Q-17111- U z 0 w U 0 z 0 w z z N 0 0 Jt 7 X w E awe r F Packet Pg. 9 81 W -1 Y Jn 11.a i ", MN IA ULARI'IA Landscaping & Lighting District Zone B Exhibit "C' Legend OZone B Parcels ­ —17 Packet Pg. 83 CITY OF SANTA CLARITA ENGINEER'S REPORT Santa Clarita Landscaping and Lighting District Annexation No. 2018-1 Establishment of Annual Assessments Commencing Fiscal Year 2018/2019 Intent Meeting: November 28, 2017 Public Hearing: January 23, 2018 CITY OF SANTA CLARITA 23920 VALENCIA BOULEVARD SANTA CLARITA, CA 91355 PREPARED BY WILLDAN FINANCIAL SERVICES NOVEMBER 2017 iWILLDAN iFinancial Services CITY OF SANTA CLARITA SANTA CLARITA LANDSCAPING AND LIGHTING DISTRICT ANNEXATION NO. 2018-1 ENGINEER'S REPORT CERTIFICATE This Report and the enclosed budgets, diagrams, and descriptions outline the proposed annexation of territory into specified Zones within the City of Santa Clarita Landscaping and Lighting District, to be designated as Annexation No. 2018-1, including the improvements, parcels, and assessments established for Fiscal Year 2017/2018, as the same existed at the time of the passage of the Resolution of Intention, with such assessments to be levied and collected on the County Tax Rolls commencing in Fiscal Year 2018/2019. Reference is hereby made to the Los Angeles County Assessor's maps for a detailed description of the lines and dimensions of parcels within Landscaping and Lighting District and Annexation No. 2018-1. The undersigned respectfully submits the enclosed Report as directed by the City Council of the City of Santa Clarita. Dated this day of 2017. Willdan Financial Services Assessment Engineer By: By: Jim McGuire Richard Kopecky Principal Consultant, Project Manager R. C. E. # 16742 District Administration Services I HEREBY CERTIFYthat the enclosed Engineer's Report, together with the Assessment Roll and Assessment Diagram thereto attached was filed with me on the day of 2017. By: Mary Cusick, City Clerk City of Santa Clarita Los Angeles County, California I HEREBY CERTIFYthat the enclosed Engineer's Report, together with the Assessment Roll and Assessment Diagram thereto attached was approved and confirmed by the City Council of the City of Santa Clarita, California, on the day of 2017. By: Mary Cusick, City Clerk City of Santa Clarita Los Angeles County, California TABLE OF CONTENTS INTRODUCTION 1 Overview 1 Ballot Proceedings 3 Assessment Range Formula (Consumer Price Index Adjustment) 4 PART I - PLANS AND SPECIFICATION 5 Description of the Annexation Territory 5 Improvements Authorized by the 1972 Act 5 Description of Improvements Applicable to the Annexation Territory 6 PART II - ESTIMATE OF COSTS 9 PART III - METHOD OF APPORTIONMENT OF ASSESSMENTS 13 General 13 Reason for the Assessment 13 Special Benefit Analysis 13 General Benefits 16 Apportionment Methodology 16 Assessment Rates 22 PART IV - ANNEXATION DIAGRAMS 23 Annexation Diagram: Annexation No. 2018-1, Streetlighting Zone B 24 Annexation Diagram: Annexation No. 2018-1, Landscaping Zone 2008-1 25 Annexation Diagram: Annexation No. 2018-1, Landscaping Zone 28 26 PART V- ASSESSMENT ROLL 27 IrWI LLDAN Financial Services Introduction Overview The City of Santa Clarita (the "City"), under the provisions of the Landscaping and Lighting Act of 1972, being Part 2, Division 15 of the California Streets and Highways Code, commencing with Section 22500 (the "1972 Act) and the provisions of the California Constitution Article XIII D enacted by Proposition 218 (the "Constitution"), has annually levied and collect special assessments for the City's maintenance assessment districts designated as: Streetlight Maintenance District No. 1 ("SMD No.1" previously LLA -1); Landscape Maintenance District No. 1 ("LMD No. 1"); and Landscape Maintenance District No. T1 ("LMD No. TV) These three districts incorporated and were inclusive of Streetlighting Zones A and B, and Landscaping Zones 1, 2, 3, 3A, 4, 5, 5A, 6, 7, 7A, 8, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 2008-1, T2, T3,T3B, T4, T5, T6, T7, T8, T17, T20, T23, T23 -A, T23 -B, T29, T31, T33, T44, T46, T47, T48, T51, T52, T62, T65, T65 -A, T65 -B, T67, T68, T69, T71, T77 and T1 (the "Zones). In Fiscal Year 2017/2018, pursuant to Chapter 2, Article 2, Section 22605 of the 1972 Act, the City Council consolidated the three previously existing districts including the Zones therein into a single assessment district, designated as: Santa Clarita Landscaping and Lighting District (the "District'), to provide and maintain the various landscaping and lighting improvements throughout the City that provide special benefits to properties within the District. In accordance with the 1972 Act, the District retained the Zone designations, Zone boundaries, methods of apportionment and authorized maximum assessments for each Zone previously established for the previously existing districts to address variations in the nature, location, and extent of the improvements that provide special benefits to parcels within the City. Within the boundaries of the District, parcels are assigned to various Zones each of which is associated with a set of improvements and/or type of improvements that provide special benefit to properties within that Zone. The landscaping improvements are generally located within the right of ways and easements of the respective Landscaping Zones and streetlights locations associated with the Streetlighting Zones are included on lighting inventory maps available for inspection at the City. The City Council of the City of Santa Clarita being the legislative body for the Santa Clarita Landscaping and Lighting District, may pursuant to Chapter 2, Article 2 of the 1972 Act, annex territory and levy annual assessments for the maintenance, operation, and administration of the District, and Section 22608 of the 1972 Act further states in part "In annexation proceedings, the resolutions, report, notices of hearing, and right of majority protest shall be limited to the territory proposed to be annexed...". In addition, the 1972 Act provides for the levy of annual assessments after annexation into an assessment district for the continued maintenance and servicing of the improvements. The 1972 Act further allows various areas to be annexed into an existing district and or zone of benefit Annexation No. 2018-1 City of Santa Clarita Engineer's Report Fiscal Year 2018/2019 Landscaping and Lighting District Page 1 IrWI LLDAN Financial Services ("Zone"), when the territory in the annexation receives substantially the same proportional special benefits from the improvements. The costs associated with the installation, maintenance, and servicing of the improvements may be assessed to those properties, which are benefited by the installation, maintenance, and servicing of such improvements. As required pursuant to Chapter 1, Article 4 of the 1972 Act, this Report shall serve as the detailed engineer's report specifically for the annexation of territory to specified Zones within the Santa Clarita Landscaping and Lighting District to be designated and referred to as: Santa Clarita Landscaping and Lighting District, Annexation No. 2018-1 (hereafter referred to as "Annexation No. 1" or "Annexation Territory"), and the establishment of the new maximum annual assessments related thereto, to be levied and collected upon properties within the Annexation Territory commencing in Fiscal Year 2018/2019 for the special benefits each property receives from the maintenance and servicing of the improvements to be provided by the City through the District and each respective Zone and parcel therein. The Annexation Territory as described in this Report, incorporates a total of 800 parcels inclusive of approximately two thousand five hundred fifty-four (2,553.83) acres of territory within the City of Santa Clarita, which is more specifically described in "Part I — Plans and Specification" of this Report. For Fiscal Year 2018/2019, the City Council of the City of Santa Clarita proposes to annex various parcels in the above referenced Annexation Territory into Streetlighting Zone B and/or Landscaping Zone 2008-1 and /or Landscaping Zone 28 as applicable to provide an annual funding source to adequately support the ongoing maintenance, servicing, operation, and incidental expenses associated with the landscape improvements, streetlighting and appurtenant facilities and amenities that benefit the identified properties within the Annexation Territory and the new boundaries of Zone B, Zone 2008-1, and Zone 28 resulting from the annexation of these parcels. By resolution, the City Council has ordered the preparation of this Report in connection with the proceedings for the annexation of this Annexation Territory into the District pursuant to the 1972 Act and the California Constitution. Annexation diagrams identifying the territory and location of the parcels being annexed to each of these three Zones as part of the Annexation Territory is provided in "Part IV - Annexation Diagrams" of this Report. Annually, the City establishes the assessments for each of the District Zones based on the special benefit received by the properties in that Zone and the associated net special benefit expenses. These special benefit expenses are based on the historical and estimated costs to maintain the improvements that provide direct and special benefits to properties within each Zone of the District including the Annexation Territory, and include all expenditures, deficits, surpluses, revenues, and reserves. Each parcel is assessed proportionately for only those improvements provided and for which the parcel receives special benefits. The word "parcel," for the purposes of this Report, refers to an individual property assigned its own Assessor's Parcel Number (APN) by the Los Angeles County Assessor's Office. The Los Angeles County Auditor/Controller uses Assessor's Parcel Numbers and a dedicated fund number established for the District to identify properties to be assessed on the tax roll and the allocation of the funds collected and disbursed to the City on behalf of the District. If any section, subsection, sentence, clause, phrase, portion, zone, or subzone of this Report is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining provisions of the Report and each section, subsection, subdivision, sentence, clause, phrase, portion, zone, or subzone Annexation No. 2018-1 City of Santa Clarita Engineer's Report Fiscal Year 2018/2019 Landscaping and Lighting District Page 2 IrWI LLDAN Financial Services thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, portions, zones, or subzones might subsequently be declared invalid or unconstitutional. Ballot Proceedings On November 5, 1996, the electorate of the State of California approved Proposition 218, Right to Vote on Taxes Act, which added Articles XIIIC and MID to the California Constitution. The Article MID affects all assessments upon real property for a special benefit conferred on the property. Assessments imposed under the Landscaping and Lighting Act of 1972 are these types of benefit assessments. The provisions of Proposition 218 can be summarized in four general areas: 1. Strengthens the general and special tax provisions of Propositions 13 and 62; 2. Extends the initiative process to all local taxes, assessments, fees and charges; 3. Adds substantive and procedural requirements to assessments; and 4. Adds substantive and procedural requirements to property -related fees and charges. Pursuant to the provisions of Article XIIID, Section 4 of the California Constitution, the City shall conduct a property owner protest ballot proceeding ('Ballot Proceeding") for the proposed levy of new or increased assessments as described in this Report. In conjunction with this Ballot Proceeding, the City Council will conduct a noticed public hearing to consider public testimonies, comments, and written protests regarding the annexation of the parcels within Annexation No. 2018-1 and the establishment of the proposed new assessments related thereto. Upon conclusion of the public hearing, property owner protest ballots received will be opened and tabulated to determine whether majority protest exists as defined in Article MID of the California Constitution. "A majority protest exists if, upon the conclusion of the hearing, ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessment. In tabulating the ballots, the ballots shall be weighted according to the proportional financial obligation of the affected property." After completion of the ballot tabulation, the City Council will confirm the results of the balloting. If majority protest exists for the proposed assessments, further proceedings to annex the parcels with the Annexation Territory and implementation of the new assessments shall be abandoned at this time. If tabulation of the ballots indicate that majority protest does not exist for the proposed new assessments and the assessment range formula presented and described herein, the City Council may adopt this Report (as submitted or amended); approve the assessment diagrams contained herein (Annexation Diagrams); order the annexation of the parcels within Annexation No. 2018-1 to the District and the improvements to be made; and confirm the new assessments as outlined in this Report. The new assessments as approved including the assessment range formula, may be levied and collected on the County tax rolls commencing in Fiscal Year 2018/2019 together with the assessments for other properties in the District. For Fiscal Year 2018/2019 and each subsequent fiscal year, an engineer's annual levy report for the District shall be prepared and presented to the City Council to address any proposed changes to the District or Zones, as well as any proposed changes to the improvements, budgets and assessments for that fiscal year. The City Annexation No. 2018-1 City of Santa Clarita Engineer's Report Fiscal Year 2018/2019 Landscaping and Lighting District Page 3 IrWI LLDAN Financial Services Council shall hold a noticed public hearing regarding these matters prior to approving and ordering the levy of annual assessments. If in any fiscal year, the proposed annual assessments for parcels with the District or Zone exceed the maximum assessments and specifically those assessments described herein for Annexation No. 2018-1, such an assessment would be considered a new or increased assessment and must be confirmed through a mailed property owner protest ballot proceeding for the affected parcels before such a new or increased assessment may be imposed. Assessment Range Formula (Consumer Price Index Adjustment) With the exceptions of the District's Streetlighting Zone A, and Landscaping Zones T20, T33, T44, T48 and T62, which are not part addressed in the Report, the authorized maximum assessment rates for all other District Zones, includes an annual cost of living adjustment based on the annual percentage change in the Consumer Price Index (CPI). This annual adjustment to the maximum assessment rates authorized is defined as follows: The maximum assessment rate may increase each fiscal year based on the annual change in the Consumer Price Index (CPI), during the preceding year, for All Urban Consumers, for the Los Angeles, Riverside and Orange County areas, published by the United States Department of Labor, Bureau of Labor Statistics (or a reasonably equivalent index should the stated index be discontinued). The maximum assessments described in this Report for Streetlighting Zone B, Landscaping Zone 2008-1, and Landscaping Zone 28 to be presented to the property owners of record within the Annexation Territory as part of the Ballot Proceeding, are based on the current maximum assessment rates and the method of apportionment established for each of the Zones for Fiscal Year 2017/2018. These maximum assessment rates shall be adjusted according to the assessment range formula described above for Fiscal Year 2018/2019 as part of the District's annual assessment process, and the assessment rates and parcel assessment amounts for the Annexation Territory as described herein may be adjusted accordingly for the assessments commencing in Fiscal Year 2018/2019. Annexation No. 2018-1 City of Santa Clarita Engineer's Report Fiscal Year 2018/2019 Landscaping and Lighting District Page 4 IrWI LLDAN Financial Services Part I - Plans and Specification Description of the Annexation Territory This Annexation Territory incorporates a total of 800 parcels inclusive of approximately two thousand five hundred fifty-four (2,553.83) acres of territory within the City of Santa Clarita, which consists of 205 single-family residential parcels, 13 multi -family residential parcels (572 total units), 384 non-residential parcels or planned non-residential parcels (1,057.745 acres), 59 vacant undeveloped parcels or single-family vacant parcels (520.509 acres), and 139 parcels (753.519 acres) identified as exempt properties including, but not limited to rights-of-way, easements, open spaces, common areas or bifurcated lots which do not receive special benefits from the District improvements. Of the 800 parcels within the Annexation Territory, 793 parcels are being annexed into Streetlighting Zone B, 292 parcels are being annexed into Landscaping Zone 2008-1, and 62 parcels are being annexed into Landscaping Zone 28. Annexation diagrams identifying the territory and location of the parcels being annexed to each of these three Zones as part of the Annexation Territory is provided in "Part IV - Annexation Diagrams" of this Report. Improvements Authorized by the 1972 Act As applicable or may be applicable to this District, the 1972 Act defines improvements to mean one or any combination of the following: • The installation or planting of landscaping. • The installation or construction of statuary, fountains, and other ornamental structures and facilities. • The installation or construction of public lighting facilities, including, but not limited to, traffic signals. • The installation or construction of any facilities which are appurtenant to any of the foregoing or which are necessary or convenient for the maintenance or servicing thereof, including, but not limited to, grading, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities. • The installation of park or recreational improvements, including, but not limited to, all of the following: ➢ Land preparation, such as grading, leveling, cutting and filling, sod, landscaping, irrigation systems, sidewalks, and drainage. ➢ Lights, playground equipment, play courts, and public restrooms. • The maintenance or servicing, or both, of any of the foregoing. • The acquisition of land for park, recreational, or open -space purposes. • The acquisition of any existing improvement otherwise authorized pursuant to this section. • Incidental expenses associated with the improvements include, but are not limited to: • The cost of preparation of the report, including plans, specifications, estimates, diagram, and assessment; • The costs of printing, advertising, and the publishing, posting and mailing of notices; Annexation No. 2018-1 City of Santa Clarita Engineer's Report Fiscal Year 2018/2019 Landscaping and Lighting District Page 5 WI LLDAN Financial Services • Compensation payable to the County for collection of assessments; • Compensation of any engineer or attorney employed to render services; • Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements; • Any expenses incidental to the issuance of bonds or notes pursuant to Section 22662.5. • Costs associated with any elections held for the approval of a new or increased assessment. The 1972 Act defines "maintain" or "maintenance" to mean furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including: • Repair, removal, or replacement of all or any part of any improvement. • Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury. • The removal of trimmings, rubbish, debris, and other solid waste. • The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti. Description of Improvements Applicable to the Annexation Territory Landscaping Improvements The improvements installed, maintained and serviced within the Landscaping Zones are generally described as improvements within public rights-of-way and dedicated landscape easements within various tracts and on individual parcels located throughout the City including, but not limited to: landscaping, planting, shrubbery, trees, grass, other ornamental vegetation, irrigation systems, hardscapes and fixtures; statuary, fountains and other ornamental structures and facilities; public lighting facilities; facilities which are appurtenant to any of the foregoing or which are necessary or convenient for the maintenance or servicing thereof, including, but not limited to, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities; and, park or recreational improvements, including, but not limited to, playground equipment, play courts, public restrooms, and paseos/trails. District funds are used for the maintenance and servicing including, but not limited to, labor, electrical energy, water, materials, contracting services, administration, reserve, and other expenses necessary for the satisfactory maintenance and servicing of these improvements. Maintenance means the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of the ornamental structures, landscaping and appurtenant facilities, including repair, removal or replacement of all or part of any of the ornamental structures, landscaping or appurtenant facilities; providing for the life, growth, health and beauty of the landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, and treating for disease or injury; the removal of trimmings, rubbish, debris, other solid waste; and pest control; the cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti. Servicing means the furnishing of electricity for the operation of any appurtenant facilities, water Annexation No. 2018-1 City of Santa Clarita Engineer's Report Fiscal Year 2018/2019 Landscaping and Lighting District Page 6 IrWI LLDAN Financial Services for the irrigation and control of the landscaping, and the maintenance of any of the ornamental structures, landscaping and appurtenant facilities. The plans and specifications for the improvements are voluminous and are not bound in this Report but by reference are incorporated and made a part of the Report; and are on file at the City including any additional improvements proposed to be constructed and installed in connection with the development of any of the properties within the Annexation Territory. The following is a brief description of the improvements maintained within the Annexation Territory Landscaping Zones: Zone 2008-1 (Major Thoroughfare Medians): Properties in this zone receive a benefit from maintenance and improvement to medians on the City's major thoroughfares. Typical maintenance and improvement activities include care of Landscaping, hardscape, irrigation systems, ornamental structures, signage, lighting, and plant material which may consist of turf, ground cover, shrubs, trees and flowers. Landscaping activities performed within the boundary of this Zone are on easements or public rights of way. Zone 28 (Newhall): Properties in this zone receive a benefit from maintenance and improvement activities including care for: slopes, parkways and side panels, local fences, walls, swales, hardscape, irrigation systems, ornamental structures, signage, lighting and monument signs. Plant material may consist of: turf, ground cover, shrubs, trees and flowers. Landscaping activities performed in this Zone are on easements or public rights of way. These improvements may be located on or near, but not limited to the following: Main Street, Railroad Avenue, Newhall Avenue, Dockweiler, small portions of Sierra Highway and Lyons Avenue and the Newhall Library Area Streetlighting Improvements Streetlighting Zones within the District were established to collect funds to cover the expenses for energy and maintenance of a majority of streetlights in the City. These costs are billed by the Southern California Edison Company for all approximate 17,272 streetlights currently owned and maintained by Edison and all approximate 689 streetlights owned by the City. The proposed new and/or existing improvements for Streetlighting Zones A and B include, but are not limited to, and may be generally described as follows: • The installation of streetlighting, traffic signals and other appurtenant facilities that are necessary for the daily operation of said lighting located within City road rights-of-way. Installation covers all work necessary for the installment or replacement of said lighting and all appurtenant work necessary to complete said installation or replacement. • The operation, maintenance, and servicing of all existing streetlighting, traffic signals, and other appurtenant facilities that are necessary for the daily operation of said lighting located within City road rights-of-way. Operation, maintenance, and servicing means all work necessary for the daily maintenance required to maintain said lights in proper operation including providing said lights with the proper energy necessary to operate the lights. • The payment of debt service on bonds or other obligations, including installment payments, to be issued or incurred during the fiscal year. Obligations may be incurred during the fiscal year for the acquisition, installation and conversion, including the retrofitting, of street lights within the Consolidated District and Zones and may be secured by and/or payable from a Annexation No. 2018-1 City of Santa Clarita Engineer's Report Fiscal Year 2018/2019 Landscaping and Lighting District Page 7 IrWI LLDAN Financial Services portion of the assessments levied in each fiscal year until the obligation is paid. The City Council has determined that estimated cost of the acquisition, installation and conversion of street lights within the Consolidated District and retrofit thereof, is greater than can be conveniently raised from a single annual assessment, and that the estimated cost, plus incidental expenses and financing costs, shall be collected over a period not to exceed thirty (30) years, commencing fiscal year 2018/2019 and continuing through 2048/2049. The maximum annual assessment installment is estimated to be an amount not to exceed $2,200,000 (assuming a 10 year financing), which is to be included in the annual budget of the Consolidated District. All improvements consisting of ornamental streetlights, mast arm streetlights and appurtenant facilities do exist at the present time. The cost associated with these improvements will be the cost of operations, maintenance and servicing during Fiscal Year 2017/2018. Plans and Specifications for the improvements within the Streetlighting Zones are voluminous and are not bound in this report but by this reference are incorporated and made a part of this report. These plans and specification as well as the location of the streetlights included on lighting inventory maps are on file at the City where they are available for public inspection. Annexation No. 2018-1 City of Santa Clarita Engineer's Report Fiscal Year 2018/2019 Landscaping and Lighting District Page 8 IrWI LLDAN Financial Services Part II - Estimate of Costs The estimated costs for the operation, acquisition, installation, maintenance and servicing of the facilities within Streetlighting Zone B, Landscaping Zone 2008-1, and Landscaping Zone 28, including the Annexation Territory Proportional Assessment Obligation if the Annexation Territory was included in the Zones for Fiscal Year 2017/2018 are shown on the following pages. The 1972 Act provides that the total cost of the maintenance, services and annual assessment installments, together with incidental expenses, may be financed from the assessment proceeds. The incidental expenses may include financing costs, engineering fees, legal fees, printing, mailing, postage, publishing, and all other related costs identified with the district proceedings. The estimated costs of the improvements for the Zones and District are voluminous and are not bound in this report but by this reference are incorporated and made a part of this Report. The estimated costs are on file at the City where they are available for public inspection. Annexation No. 2018-1 City of Santa Clarita Engineer's Report Fiscal Year 2018/2019 Landscaping and Lighting District Page 9 IrWI LLDAN Financial Services Landscaping Zone 2008-1 Annexation Territory Budget: Landscaping and Lighting District, Zone 2008-1 (Major Thoroughfare Medians) Annexation Maintenance & Operating Expenses Major Thoroughfare Median Maintenance Expenses Capital Expenses Administration Expenses Sub -Total Annual Maintenace & Operation Expenses Reserves Operating Reserve Fund Collection Capital Replacement Reserve Fund Collection Sub -Total Annual Reserve Fund Collection Total Annual Expenses Funding Adjustments Interest Revenues Projected (surplus) or deficit City Contribution Total Funding Adjustments Special Benefit (Assessment Revenue Required) Less Current Zone 2008-1 Assessment Revenue (FY 2017/2018) Annexation Territory Proportional Assessment Obligation Annexation No. 2018-1 City of Santa Clarita Fiscal Year 2018/2019 Landscaping and Lighting District $ 1,946,483 6,467,878 $ 8,414,361 $ (1,595,656) $ (1,595,656) $ 6,818,706 $ (37,385) (831, 565) (15, 592) $ (884,542) $ 5,934,164 (5,750,616) $ 183,548 Engineer's Report Page 10 IrWI LLDAN Financial Services Landscaping Zone 28 Annexation Territory Budget: Landscaping and Lighting District, Zone 28 (Newhall) Annexation Maintenance Expenses Parkway Maintenance & Operations $ 307,881 Slopes Maintenance & Operations 164,459 Park Maintenance & Operations - Maintenance Expenses �$ 472,339 Capital Expenses 61,953 Administration Expenses 16,877 Sub -Total Annual Maintenace & Operation Expenses $ 551,169 Reserves Operating Reserve Fund Collection $ 84,380 Capital Replacement Reserve Fund Collection 125,165 Sub -Total Annual Reserve Fund Collection $ 209,545 Total Annual Expenses $ 760,714 Funding Adjustments Interest Revenues $ (3,155) Projected (surplus) or deficit (219,222) City Contribution - Total Funding Adjustments $ (222,377) Special Benefit (Assessment Revenue Required) $ 538,337 Less Current Zone 28 Assessment Revenue (FY 2017/2018) (379,286) Annexation Territory Proportional Assessment Obligation $ 159,051 Annexation No. 2018-1 City of Santa Clarita Engineer's Report Fiscal Year 2018/2019 Landscaping and Lighting District Page 11 Streetlighting Zone B Annexation Territory Budget: Landscaping and Lighting District, Zone B (Streetlighting) Annexation Operation and Maintenance Expenses Personnel Department Other Administrative Sub -Total Personnel Operations & Maintenance Electric Utilities - Street Lights Contractual Services General Administration Sub -Total Operations & Maintenance Total Personnel, Operation & Maintenance Expenses Capital Expenses Total Annual Expenses Funding Adjustments Transfers In Transfers Out City Contribution Total Funding Adjustments Special Benefit (Assessment Revenue Required) Less Current Zone B Assessment Revenue (FY 2017/2018) Annexation Territory Proportional Assessment Obligation Annexation No. 2018-1 City of Santa Clarita Fiscal Year 2018/2019 Landscaping and Lighting District WI LLDAN Financial Services $ 185,507 95,571 $ 281,078 $ 2,338,024 43,766 15,079 $ 2,396,868 $ 2,677,947 $0 $ 2,677,947 $ (95, 693) 635 $ (95,059) $ 2,582,888 (2,242,077) $ 340,811 Engineer's Report Page 12 WI LLDAN Financial Services Part III — Method of Apportionment of Assessments General Part 2 of Division 15 of the Streets and Highways Code, the Landscaping and Lighting Act of 1972, permits the establishment of Assessment Districts by cities for the purpose of providing certain public improvements which include the acquisition, construction, maintenance and servicing of streetlights, traffic signals and landscaping facilities. Section 22573, Landscaping and Lighting Act of 1972 requires that assessments be levied according to benefit rather than according to assessed value. This section states: "The net amount to be assessed upon lands within an Assessment District may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements." The 1972 Act permits the designation of zones of benefit within any individual Assessment District if "by reason of variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvements." (Sec. 22574). Thus, the 1972 Act requires the levy of a true "assessment" rather than a "special tax." In addition, Proposition 218 requires that a parcel's assessment may not exceed the reasonable cost of the proportional special benefit conferred on that parcel. Proposition 218 provides that only special benefits are assessable and the City must separate the general benefits from the special benefits. Reason for the Assessment The assessments are proposed to be levied to defray the costs of the acquisition, installation, maintenance and servicing of landscaping and lighting improvements, as previously defined herein in "Part I -Plans and Specifications" of this Report. Special Benefit Analysis In determining the proportionate special benefit derived by each identified parcel, the proximity of the parcel to the public improvements detailed in "Part I -Plans and Specifications" of this Report, and the capital, maintenance and operating costs of said public improvements, was considered and analyzed. Due to the close proximity of the parcels to the improvements detailed in "Part I - Plans and Specifications" of this Report, it has been demonstrated and determined the parcels are uniquely benefited by, and receive a direct advantage from, and are conferred a particular and distinct special benefit over and above general benefits by, said public improvements in a way that is particular and distinct from its effect on other parcels and that real property in general and the public at large do not share. Annexation No. 2018-1 City of Santa Clarita Engineer's Report Fiscal Year 2018/2019 Landscaping and Lighting District Page 13 WI LLDAN Financial Services Landscaping Benefits Street Landscaping Trees, landscaping, hardscaping, ornamental structures and appurtenant facilities, if well maintained, confer a particular and distinct special benefit upon real property within each Zone of Benefit by providing beautification, shade and positive enhancement of the community character, attractiveness and desirability of the surroundings. In addition, all of the aforementioned contributes to a specific increase in property desirability and a specific enhancement of the property value of each parcel within each Zone of Benefit which confers a particular and distinct special benefit upon the real property within each Zone of Benefit. In Parkways and Land Values, written by John Nolan and Henry V. Hubbard in 1937, it is stated: "... there is no lack of opinion, based on general principals and experience and common sense, that parkways do in fact add value to property, even though the amount cannot be determined exactly.... Indeed, in most cases where public money has been spent for parkways the assumption has been definitely made that the proposed parkway will show a provable financial profit to the City. It has been believed that the establishment of parkways causes a rise in real estate values throughout the City, or in parts of the City..." It should be noted that the definition of "parkways" above may include the roadway as well as the landscaping alongside the roadway. Landscaped Medians in the Major Thoroughfares The Landscaping improvements in the medians along the major thoroughfares confer a particular and distinct special benefit upon real property within the City by providing beautification, and positive enhancement of the community character, attractiveness and desirability of the City. In addition, all of the aforementioned contributes to a specific increase in property desirability and a specific enhancement of the property value of each parcel within the City which confers a particular and distinct special benefit upon the real property within the City. These major thoroughfares are the entryways into the City and as such provide beautification to the entire City; therefore, all parcels within the City are conferred a special benefit from the landscaped medians in the major thoroughfares. Landscaping in the medians along the major thoroughfares provides only incidental benefits to motorists traveling to, from or through the City. Recreational Trails and Greenbelts Landscaping along recreational trails and greenbelts, if well maintained, confer a particular and distinct special benefit upon real property within each Zone of Benefit by providing beautification and positive enhancement of the community character, attractiveness and desirability of the surroundings. In addition, all of the aforementioned contributes to a specific increase in property desirability and a specific enhancement of the property value of each parcel of each parcel within each Zone of Benefit which confers a particular and distinct special benefit upon the real property within each Zone of Benefit. In "Greenways for America' by Charles E. Little, it is stated: "... [real estate] agents routinely advertise properties as being on or near the trail.... property near but not immediately adjacent to the Burke -Gilman Trail is significantly easier to sell and, according to real estate agents, sells for an average of 6 percent more as a result of its proximity to the trail. Annexation No. 2018-1 City of Santa Clarita Engineer's Report Fiscal Year 2018/2019 Landscaping and Lighting District Page 14 WI LLDAN Financial Services Property immediately adjacent to the trail, however, is only slightly easier to sell.... trails are an amenity that helps sell homes, increase property values and improve the quality of life." Additionally, the National Recreation and Park Association, in June 1985, stated: "The recreation value is realized as a rise in the value of land and other property in or near the recreation area, and is of public interest to the taxpayers, who have a stake in a maximum of total assessed values." Operation and maintenance of the trails and greenways within the City confers a particular and distinct special benefit to those properties within the community immediately surrounding the improvements. Streetlighting Improvement Benefits Most of the streetlighting improvements were conditions of approval for the creation or development of the parcels. In order to create or develop the parcels, the City required the original developer to install, and guarantee the maintenance of, streetlighting and appurtenant facilities to serve the parcels. Therefore, these parcels within the District could not have been developed in the absence of the installation and promised maintenance of these facilities. The proper maintenance of the streetlighting and appurtenant facilities specially benefit parcels within the District. The proper maintenance of the streetlighting and appurtenant facilities reduces property -related crimes (especially vandalism) against properties in the District. The streetlighting located in the District helps to visuallyjoin the various segments of the community, which enhance property. In addition, all of the above mentioned improvements contribute to a specific enhancement of the property value of each of the parcels within the District. The benefit provided by streetlighting consists of safety for pedestrians and motorists living and owning property in the District during the nighttime hours. This is a particular and distinct special benefit to all developed parcels in the District. Streetlights can be determined to be an integral part of streets as a permanent public improvement. One of the principle purposes of fixed roadway lighting is to create a nighttime environment conducive to quick, accurate, and comfortable seeing for the user of the facility. These factors, if attained, combine to improve traffic safety and achieve efficient traffic movement. Fixed lighting can enable the motorist to see detail more distinctly and to react safely toward roadway and traffic conditions present on or near the roadway facility. Streets are constructed for the safe and convenient travel by vehicles and pedestrians. They also provide an area for underground and overhead utilities. Streetlights are considered an integral part of the entire street, the same as curb, gutters, pavement, signage and striping. They are the elements that provide a safe route for motorists and pedestrians. Streetlights are installed to make streets safer. Assessments for the acquisition, maintenance and servicing of streets may include streetlights. Streetlights are installed to provide better visibility for drivers. One hundred (100) percent of the illumination from the lights is directed to the street, ninety (90) percent on the street side of the curb and ten (10) percent behind the curb. The spacing of the lights is based on the speed of the vehicles and the natural ability of the motorists' eyes to adjust to light and dark areas. Annexation No. 2018-1 City of Santa Clarita Engineer's Report Fiscal Year 2018/2019 Landscaping and Lighting District Page 15 WI LLDAN Financial Services The systems of streets within the District are established to provide access to each parcel in the District. Streetlights provide a safer street environment for owners of the parcels served. If the parcels were not subdivided to individual parcels within the District, there would be no need for providing a system of streets with safety lighting for the owners of the individual parcels. The City has determined that streetlights are also an integral part of the quality of life within the City. This quality of life is a special benefit to some degree to all parcels, except government owned parcels, including easements, and flood channel parcels. Therefore, the acquisition, installation, operation and maintenance of streetlights are for the express, special benefit of the parcels within the District. General Benefits General Benefit within Landscaping Zones The general benefits associated with trees, landscaping improvements, hardscaping, ornamental structures and appurtenant facilities located near the parcels within the Districts are considered incidental, negligible and non -quantifiable to the public at large. Landscaping in the medians along the major thoroughfares provides only incidental, negligible and non -quantifiable benefits to motorists traveling to, from or through the City. Operation and maintenance of the trails and greenways within the City provides only incidental, negligible and non -quantifiable benefits to pedestrians and cyclists traveling through the trails and greenbelts. The improvements detailed in Part A herein confer special benefits that affect the assessed property in a way that is particular and distinct from the effects on other parcels and that real property in general and the public at large do not share. General Benefit within Lighting Zones In addition to the special benefits received by the parcels within the Streetlighting Zones, there are incidental general benefits conferred by the improvements. It is estimated that the general benefit portion of the benefit received from the lighting improvements is less than one (1) percent of the total benefit. Nonetheless, the City has agreed to ensure that no property is assessed in excess of the reasonable cost of the proportional special benefit conferred on that property. The total benefits for lighting are thus a combination of the special benefits to the parcels within the District and the general benefits to the public at large. The portion of the total streetlighting maintenance costs which are associated with general benefits will not be assessed to the parcels in the district, but will be paid from other City Funds. These general benefits are more than adequately offset by the substantial contribution from the ad valorem streetlighting revenues. Apportionment Methodology Landscaping Methodology The following table lists the various Zones within the District, their land use and assessment type, and the number of assessable parcels, units, acreage or EBU's. Annexation No. 2018-1 City of Santa Clarita Engineer's Report Fiscal Year 2018/2019 Landscaping and Lighting District Page 16 WI LLDAN Financial Services Equivalent Benefit Units (EBU's) In order to allocate benefit fairly between the parcels, an Equivalent Benefit Unit (EBU) methodology is applied which equates different types of land uses to a single-family residential parcel, thereby allowing a uniform method of assessment. The EBU method uses the single-family home as the basic unit of apportionment. A single family home equals one Equivalent Benefit Unit (EBU). Every other land use is converted to EBU's as described below. All properties in the District will be assigned benefit units and land use classifications per the County Assessor's roll. (Inaccuracies in the County data will be reviewed on a case by case basis as they are brought to the City's attention.) A methodology has been developed to calculate the EBU's for other residential land uses and for non-residential parcels. Every land use is converted to EBU's: parcels containing apartments are converted to EBU's based on the number of benefit units on each parcel of land; non-residential parcels are converted based on the lot size of each parcel of land. There are various apportionment methodologies used for various Zones throughout the District. For both Landscaping Zone 2008-1 and Zone 28 which are applicable to various parcels within the Annexation Territory the same methodology is utilized in each Zone. This method of apportion is described below: District Method 4 Applicable to Zone 2008-1 and Zone 28: Method 4 —The assessment is apportioned to the benefiting properties based on Equivalent Benefit Units (EBU's) such that a Single Family Detached Residence (SFR) is equal to 1 EBU and all other properties are converted to EBU's based on their relative benefit as compared to an SFR as follows: Residential Single Family home 1 dwelling x 1.00 = 1.00 EBU / dwelling Single Family vacant (subdivided) 1 parcel x 0.25 = 0.25 EBU / parcel Multi -Family (incl. Condo) 1 dwelling x 0.75 = 0.75 EBU / dwelling Mobile Home Parks 1 space x 0.50 = 0.50 EBU / space Developed Non -Residential 1 acre x 6.00 = 6.00 EBU / acre Vacant 1 Park 1 School 1 acre x 1.50 = 1.50 EBU / acre Special Cases Varied = Varied EBU Annexation No. 2018-1 City of Santa Clarita Engineer's Report Fiscal Year 2018/2019 Landscaping and Lighting District Page 17 WI LLDAN Financial Services The number of parcels, units, acres and EBU's shown in the following tables reflect the application of the method of apportionment described above for the parcels within the Annexation Territory for both Landscaping Zone 2008-1 and Zone 28. These numbers may be updated prior to submitting the final Assessment Roll to the County Auditor -Controller for placement on the property tax bills for Fiscal Year 2018/2019. Fluctuations in the number of parcels and other information may occur from year to year as parcels subdivide, combine and/or change uses. Zone 2008-1 Land Use Parcels AppliedApplied EBU's Estimated Assessment Acreage Revenue TOTAL 292 166 1,379.14 2,806.56 $ 183,547.96 Zone 28 Streetlighting Methodology Residential Parcels The following information can be used to determine the EBU count per parcel. Based on land use information provided by the County Assessor, it has been determined that in the existing district, approximately 96 percent of the parcels are in a residential category. Approximately 95 percent are single-family homes or condominiums, and the remainders are duplexes, triplexes, or apartments. In view of this and the benefits derived by the family unit, both at and in the proximity of their property, a value of 1.00 has been assigned to the basic family unit or Equivalent Benefit Unit (EBU), i.e. the single-family home or condominium. The existing district includes some properties that may not actually have streetlights in their block but which do receive a neighborhood benefit from the lights in the area. These properties were also included in the District. Therefore a weighted value of 0.50 was given to "People Use" while "Intensity" and "Security Benefit" were each rated at 0.25 to form the basic unit (1.00 EBU). Parcels in other land use categories were assigned weighted values by comparison with this basic EBU. In the remainder of the residential category, which is comprised of multiple rental type properties, the value for Intensity would remain at 0.25, but the other two items would increase in proportion Annexation No. 2018-1 City of Santa Clarita Engineer's Report Fiscal Year 2018/2019 Landscaping and Lighting District Page 18 WI LLDAN Financial Services to the number of family dwelling units on the parcel. For example, a duplex was assigned 0.25 for Intensity, 1.00 for People Use and 0.50 for Security Benefit for a total of 1.75 EBU's. The owner of such property would therefore pay 1.75 times as much for lighting as the owner of a single- family unit. In consideration of the distance some units would be from the lighted roadway, Security Benefits in the residential category would not be increased beyond a value of 1.00. Thus, a 5 -unit apartment would be assigned 0.25 for Intensity, 2.50 for People Use and 1.00 for Security Benefits for a total of 3.75 EBU's. As the number of apartments on a parcel increases, the service charge units assigned for people would follow a declining scale. The Table below summarizes the Streetlighting EBU Calculations for Residential Parcels: SFR/Condo SFR and Condos 0.50 + 0.25 + 0.25 = 1.00 per parcel APT2 Apartments (2-4 units) 1/2 x units + 0.25 x units + 0.25 2 1.00 + 0.50 + 0.25 = 1.75 per parcel 3 1.50 + 0.75 + 0.25 = 2.50 per parcel 4 2.00 + 1.00 + 0.25 = 3.25 per parcel APT5 Apartments (5-20 units) 1/2 x units + 1.00 + 0.25 5 2.50 + 1.00 + 0.25 = 3.75 per parcel 20 10.00 + 1.00 + 0.25 = 11.25 per parcel APT21 Apartments (21-50 units) 1/3 x (units -20) + the total EBU for a 20 -unit apartment 50 10.00 + 11.25 = 21.25 per parcel APT51 Apartments (51-100 units) 1/4 x (units -50) + the total EBU for a 50 -unit apartment 100 12.50 + 21.25 = 33.75 per parcel APT101 Apartments (100+ units) 1/5 x (units -100) + the total EBU for a 100 -unit apartment 101 0.20 + 33.75 = 33.95 per parcel 175 15.00 + 33.75 = 48.75 per parcel 200 20.00 + 33.75 = 53.75 per parcel Non -Residential Parcels The non-residential lots or parcels are separated into 38 land use categories as determined by the County Assessor. Equivalent Benefit Units (EBU's) are assigned on the basis of average benefits for different groups of land uses, Groups A -K. Properties within the 10 land use categories in Group K varied widely from the norm and therefore these lots or parcels were considered on an individual basis. Each of the parcels or lots in these land use categories was identified on the official lighting district maps and each streetlight or portion thereof in the immediate proximity of the lots or parcels benefiting the lots or parcels was assigned a number of units as identified below. The total number of EBU's so determined for that category would be distributed among the lots or parcels in that category in proportion to the lot or parcel area as shown in the table below. A minimum of 3.00 EBU's would be assessed to each lot or parcel to be compatible with group D which contains many of the smaller business categories. Several large lots or parcels in Annexation No. 2018-1 City of Santa Clarita Engineer's Report Fiscal Year 2018/2019 Landscaping and Lighting District Page 19 WI LLDAN Financial Services outlying areas within the existing lighting district have no lights in the immediate proximity and therefore those lots or parcels would be assessed the minimum amount. Since benefits have been related to property use and property users, no charge would be assessed on vacant parcels within the district. The Table below summarizes the Streetlighting EBU Calculations for Non -Residential Parcels: GRP -A Group A Irrigated Farms, Dry Farms, Cemeteries, Dump Sites 1 EBU minimum charge per parcel 1.00 per parcel Animal Kennels, Nurseries and greenhouses, Industrial GRP -B Group B parking lots, Churches, Private Schools, Petroleum and 1.00 + 0.50 + 0.50 = 2.00 per parcel Gas, Utility GRP -C Group C Commercial Parking Lots 1.00 + 0.50 + 1.00 = 2.50 per parcel Office & Professional building, Bank, Savings & Loan, GRP -D Group D Service Shop, Lumber Yard, Golf Course, Race 1.00 + 1.00 + 1.00 = 3.00 per parcel track/stable, Camp, Home for the Aged GRP -E Group E Store, Store w/ office or residence, Service Station, Club 2.00 + 1.00 + 1.00 = 4.00 per parcel & Lodge Hall GRP -F Group F Rooming House (same as 6 unit apartment) 3.00 + 1.00 + 0.25 = 4.25 per parcel GRP -G Group G Restaurant, Theater 3.00 + 1.00 + 1.00 = 5.00 per parcel GRP -H Group H Light Manufacturing, Food Processing Plant, 2.00 + 2.00 + 1.00 = 5.00 per parcel Warehousing, Storage Facilities GRP -I Group I Auto, Recreational Equipment Sales & Service 2.00 + 2.00 + 2.00 = 6.00 per parcel GRP -J Group J Market, Bowling Alley, Skating Rink, Department Store, 4.00 + 2.00 + 2.00 = 8.00 per parcel Hotel/Motel, Mobile Home Park Group K All parcels in Group K are assessed a minimum of 3 EBU's Group K-1 3.00 + 1.00 + 1.25 = 5.25 GRP-K1A Open Storage 0.004973 per 100 SgFt of lot GRP -K1 B ---------------------------------------------------------------------------------------------------------- Mineral Processing 0.005615 per 100 SgFt of lot Group K-2 4.00 + 1.00 + 1.25 = 6.25 GRP-K2A Private College/University 0.001736 per 100 SgFt of lot GRP-K2B Wholesale, Manufacturing Outlets 0.059858 per 100 SgFt of lot GRP-K2C Athletic and Amusement Facilities 0.027431 per 100 SgFt of lot GRP-K2D Heavy Manufacturing 0.006382 per 100 SgFt of lot GRP -KE ---------------------------------------------------------------------------------------------------------- Hospitals 0.012886 per 100 SgFt of lot Group K-3 4.00 + 1.00 + 1.50 = 6.50 GRP-K3A Motion Picture, Radio, T.V. 0.010938 per 100 SgFt of lot GRP-K3B Business Center, Neighborhood Shopping Center 0.014449 per 100 SgFt of lot GRP-K3C Regional Shopping Center 0.021812 per 100 SgFt of lot Vacant 0.00 + 0.00 + 0.00 = 0.00 per parcel Annexation No. 2018-1 City of Santa Clarita Engineer's Report Fiscal Year 2018/2019 Landscaping and Lighting District Page 20 WI LLDAN Financial Services The number of parcels, units, acres and EBU's shown in the following table reflect the application of the method of apportionment described above for the parcels within the Annexation Territory for Streetlighting Zone B. These numbers may be updated prior to submitting the final Assessment Roll to the County Auditor -Controller for placement on the property tax bills for Fiscal Year 2018/2019. Fluctuations in the number of parcels and other information may occur from year to year as parcels subdivide, combine and/or change uses. Land Use SFR Parcels 205 Applied Units 205 Applied Lot Scl Ft - EBU's 205.00 Estimated Assessment Revenue $ 16,168.35 APT2 6 15 - 12.75 $ 1,005.59 APT21 3 98 - 46.42 $ 3,661.14 APT51 2 142 - 53.00 $ 4,180.11 APT101 2 317 - 90.90 $ 7,169.28 GRP -A 1 - - 1.00 $ 78.87 GRP -B 23 - - 46.00 $ 3,628.02 GRP -D 32 65 - 93.50 $ 7,374.37 GRP -E 10 - - 40.00 $ 3,154.80 GRP -G 9 - - 45.00 $ 3,549.15 GRP -H 163 - - 815.00 $ 64,279.05 GRP -I 21 - - 126.00 $ 9,937.62 GRP-K1A 15 - 2,582,485.00 128.42 $ 10,128.49 GRP-K1B 1 - 179,598.00 10.08 $ 795.01 GRP-K2D 10 - 2,805,759.00 179.07 $ 14,123.25 GRP-K3B 48 - 16,643,385.32 2,404.78 $ 189,664.99 SFV 2 - - - $ - VAC 56 - - - $ - EXE 183 - - - $ - SPC TOTAL40, 1 47 - 1 24.251 $ 1,912.60 Exempt Parcels The following are exempt from the assessment: areas of streets, avenues, lanes, roads, drives, courts, alleys, public easements, rights-of-way, and parkways. Also exempt are utility rights-of- way used exclusively for utility transmission, common areas (such as in condominium complexes), land dedicated as open space or parks, landlocked parcels, and small parcels vacated by the City, as these parcels do not benefit from the improvements. Annexation No. 2018-1 City of Santa Clarita Engineer's Report Fiscal Year 2018/2019 Landscaping and Lighting District Page 21 WI LLDAN Financial Services Assessment Rates The Maximum Assessment Rates established for Fiscal Year 2017/2018 and applicable to the Annexation Territory is provided in the following table. Streetlighting Zone B $78.8700 / EBU TBD Landscaping Zone 2008-1 $65.3996 / EBU TBD Landscaping Zone 28 $78.1490 / EBU TBD Annexation No. 2018-1 City of Santa Clarita Engineer's Report Fiscal Year 2018/2019 Landscaping and Lighting District Page 22 WWI LLDAN Financial Services Part IV — Annexation Diagrams The Assessment Diagrams for the existing Santa Clarita Landscaping and Lighting District, including any previous annexations are on file at the City and by reference herein are made part of this Report. The Annexation Diagrams (Assessment Diagrams) for the Annexation Territory relating to Streetlighting Zone B and Landscaping Zone 2008-1 and Zone 28 as described in this Report are provided on the following pages. The parcels that comprise the Annexation Territory consist of all lots, parcels, and subdivisions of land listed on the Assessment Roll contained herein as Part V. The lines and dimensions of which are shown on the Los Angeles County Assessor's parcel maps for the year this Report was prepared and are incorporated by reference herein and made part of this Report. Annexation No. 2018-1 City of Santa Clarita Engineer's Report Fiscal Year 2018/2019 Landscape and Lighting District Page 23 \�� +.�p � n n � f ht 4;`ti f Y, 4 � 4 1 1\ Y, 4 1 t f j WILLDAN ., Financial Services Annexation Diagram: Annexation No. 2018-1, Landscaping Zone 28 Annexation No. 2018-1 City of Santa Clarita Engineer's Report Fiscal Year 2018/2019 Landscape and Lighting District Page 26 WWI LLDAN Financial Services Part V — Assessment Roll Due to the number of parcels in the Annexation Territory, the Assessment Roll containing the maximum assessment amounts to be balloted for each parcel has been filed with the City Clerk in an electronic format and is, by reference, made part of this Report. The Assessment Roll shall be available for public inspection in the City Clerk's Office during normal office hours. The Assessment Roll incorporates each parcel identified within the Annexation Territory and the balloted maximum assessment amount proposed based on the Fiscal Year 2017/2018 maximum assessment rates. Each parcel listed on the Assessment Roll is currently shown and illustrated on the County Assessor's Roll and the County Assessor's Parcel Number Maps (APN maps). These records are, by reference, made part of this Report and shall govern for all details concerning the description of the lots or parcels. All assessments presented on the Assessment Roll are subject to change pending the outcome of the Ballot Proceedings and/or as a result of parcel changes made by the County including parcel splits, parcel merges or development changes that occur prior to the County generating tax bills for Fiscal Year 2018/2019. Annexation No. 2018-1 City of Santa Clarita Engineer's Report Fiscal Year 2018/2019 Landscaping and Lighting District Page 27