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HomeMy WebLinkAbout2018-01-23 - AGENDA REPORTS - LLD ANNEX (2)O Agenda Item: 1 CITY OF SANTA CLARITA AGENDA REPORT PUBLIC HEARINGS CITY MANAGER APPROVAL: 41 DATE: January 23, 2018 SUBJECT: SANTA CLARITA LANDSCAPE AND LIGHTING DISTRICT ANNEXATION NO. 2018-1 PUBLIC HEARING DEPARTMENT: Neighborhood Services PRESENTER: Kevin Tonoian RECOMMENDED ACTION City Council: 1. Conduct a public hearing and open and review ballots. 2. Adopt a resolution approving the Engineer's Report for annexing 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), if no majority protest exists, and order levies beginning Fiscal Year 2018-19. If a majority protest exists, no action will be required. BACKGROUND On November 28, 2017, the City Council adopted procedural resolutions setting a public hearing for January 23, 2018, associated with Santa Clarita Landscape and Lighting District, Annexation No. 2018-1. Ballots and notices were sent to the property owners on December 8, 2017, with the notice of public hearing published in The Signal newspaper on January 5, 2018. 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 Packet Pg. 9 O 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 of Santa Clarita's (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). Annexation of these parcels into LMD Zone 28, Zone 2008-1 and/or the SMD are 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 (Maior 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 Q. • 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. The Santa Clarita Landscape and Lighting District 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 Page 2 Packet Pg. 10 O 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. Upon tabulation of assessment ballots, should a majority protest among all parcel owners returning ballots not exist, the City Council will adopt a resolution approving the Engineer's Report and ordering the annexation of parcels into Zones 28, 2008-1 and/or the SMD commencing in Fiscal Year 2018-19. ALTERNATIVE ACTION 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 $29,600, 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 $10,400 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 Public Hearing Notice Resolution LLD 2018-1 Exhibit A: Zone 28 Exhibit B: 2008-1 Exhibit C: SMD FY1718 LLD Annexation No. 2018-1 Engineer's Report (available in the City Clerk's Reading File) Page 3 Packet Pg. 11 CITY OF SANTA CLARITA NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN: A Public Hearing will be held before the City Council of the City of Santa Clarita in the City Hall Council Chambers, 23920 Valencia Boulevard, first floor, Santa Clarita, California, on the 23rd day of January 2018, at or after 6:00 p.m., to consider the City of Santa Clarita Landscape and Lighting District, Annexation No. 2018-1 (Needham Ranch). The City Council, pursuant to the provisions of the Landscaping and Lighting Act of 1972, Section 22500 through 22679 of the California Streets and Highways Code, and Article XIII D of the California Constitution (Proposition 218), the Proposition 218 Omnibus Implementation Act will take appropriate consideration and action. Proponents, opponents, and any interested persons may appear and be heard on this matter at that time. Further information may be obtained by contacting the Neighborhood Services Department, 23920 Valencia Boulevard, Santa Clarita, CA 91355; (661) 290-2210, Kevin Tonoian, Special Districts Manager. If you wish to challenge this action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council, at, or prior to, the public hearing. Dated: January 3, 2018 Mary Cusick City Clerk Publish Date: January 5, 2018 1.a Packet Pg. 12 1.b RESOLUTION 18- G Z A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF w SANTA CLARITA, CALIFORNIA, DECLARING THE RESULTS OF THE v ASSESSMENT BALLOT TABULATION, APPROVING A FINAL ENGINEER'S m REPORT, ORDERING THE MODIFICATION OF SANTA CLARITA a LANDSCAPE AND LIGHTING DISTRICT ANNEXATION 2018-1, PROVIDING FOR THE LEVY AND COLLECTION OF THE ANNUAL ASSESSMENTS T - THEREIN, AND TAKING CERTAIN OTHER ACTIONS IN CONNECTION N THEREWITH 0 WHEREAS, the City Council of the City of Santa Clarita (City) has initiated proceedings relating to Santa Clarita Landscape and Lighting District (LLD) Annexation 2018-1 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, 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, (Assessment Law), to fund the costs of installation, servicing, and maintenance of streetlighting and landscaped improvements within public rights-of-way and dedicated landscape easements within the City; and WHEREAS, the City Council did order and subsequently receive a report prepared by Willdan Financial Services (Assessment Engineer), prepared in accordance with the Assessment Law; and WHEREAS, the City Council did set the time and place for a public hearing to consider LLD Annexation 2018-1 and to authorize the annual levy of assessments therein, and did order that notice of such public hearing, accompanied by assessment ballots, be given to the record owners of property within LLD 2018-1 in accordance with the provisions of the Assessment Law; and WHEREAS, notice of such public hearing accompanied by assessment ballots were delivered to the record owners of property within LLD Annexation 2018-1 in accordance with the provisions of the Assessment Law; and WHEREAS, the City Council considered all oral and written statements, protests, and communications made or filed by any interested persons; and WHEREAS, a Final Engineer's Report has been duly presented by the City Clerk for consideration and has been fully considered by the City Council; and WHEREAS, following conclusion of the public hearing, assessment ballots received by the City were tabulated by the City Clerk, and a majority protest did not exist. NOW THEREFORE, the City Council of the City of Santa Clarita does hereby resolve as follows: Packet Pg. 13 SECTION 1. Recitals: The above recitals are true and correct. SECTION 2. Procedures: The City Council hereby finds and determines that the procedures for the consideration of the levy of the assessments have been undertaken in accordance with the Assessment Law. SECTION 3. Assessment Ballot Procedures: Assessment ballots were delivered as required by Assessment Law to the record owners of all properties within LLD Annexation 2018-1, which are proposed to be assessed. The assessment ballots that were completed and received by the City Clerk prior to the close of the public hearing have been tabulated in accordance with the procedures established by Assessment Law and the City Council, and the results of such tabulation have been submitted to the City Council. The City Council hereby finds that the assessment ballots, weighted in accordance with Assessment Law, submitted in favor of the levy of assessments exceed the assessment ballots submitted in opposition to such levy, and therefore, majority protest to the levy of assessments within LLD Annexation 2018-1 does not exist. SECTION 4. Approval of Final Engineer's Report: The Final Engineer's Report, including the plans, specifications, general descriptions, estimate of the cost of installation, servicing, and maintenance of landscaped and appurtenant improvements within public rights-of- way and dedicated landscape easements within various areas in the City (Improvements) and incidental expenses in connection therewith, the assessment diagram(s) and the proposed assessments, is hereby approved as filed and incorporated herein by this reference. SECTION 5. LLD Annexation 2018-1: The City Council hereby orders the annexation of parcels within LLD Annexation 2018-1 to the Santa Clarita Landscape and Lighting District as specified in the Final Engineer's Report. SECTION 6. Determination and Confirmation: Based upon the Final Engineer's Report and the testimony and other evidence presented at the public hearing, the City Council hereby makes the following determinations regarding the assessments proposed to be imposed commencing with Fiscal Year 2018-19 and the annual assessment proposed to be imposed to pay for the estimated costs of the maintenance of all the improvements to ultimately be maintained upon the completion and acceptance thereof: a. The proportionate special benefit derived by each parcel assessed has been determined in relationship to the entirety of the cost of the operations and maintenance expenses. b. The assessments do not exceed the reasonable cost of the proportional special benefit conferred on each parcel. c. Only the special benefits have been assessed. 2 1.b Packet Pg. 14 1.b The maximum assessments for Fiscal Year 2017-18 within LLD Annexation 2018-1 contained in a z the Final Engineer's Report are hereby confirmed. Subsequent annual assessments in amounts 2 not to exceed the maximum annual assessment of the estimated costs of the maintenance of all w the improvements to ultimately be maintained upon the completion and acceptance thereof as set v forth in the Final Engineer's Report may be subsequently confirmed and levied without further m assessment ballot proceedings pursuant to the Assessment Law. Each fiscal year after the base a year, Fiscal Year 2017-18, the maximum assessment shall be increased by the annual change in T - the Consumer Price Index (CPI), during the preceding year, for All Urban Consumers, for the T - Los Angeles, Riverside, and Orange County areas, published by the United States Department of N Labor, Bureau of Labor Statistics, or a reasonably equivalent index if such index is discontinued, z without further compliance with the assessment ballot procedures required under the Assessment z Law. 0 - SECTION 7. Ordering of Maintenance: The public interest and convenience requires, and this legislative body does hereby order, the maintenance work to be made and performed as said maintenance work is set forth in the Final Engineer's Report. SECTION 8. Filing with Secretary: The above -referenced diagram and assessment shall be filed in the Special Districts office. Said diagram and assessment, and the certified copy thereof, shall be open for public inspection. SECTION 9. This resolution shall take effect immediately. SECTION 10. The City Clerk shall certify to the passage and adoption of this resolution, cause the same to be entered in the book of resolutions of the City, and make a minute of the passage and adoption thereof in the records of the proceedings of the City Council in the minutes of the meeting at which the same is presented. PASSED, APPROVED AND ADOPTED this 23rd day of January 2018. ATTEST: CITY CLERK DATE: 3 MAYOR Packet Pg. 15 1.b STATE OF CALIFORNIA ) z COUNTY OF LOS ANGELES ) ss. Q CITY OF SANTA CLARITA ) _ U I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the m foregoing Resolution No. 18- was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof held on the 23rd day of January 2018, by the following vote: 0 N AYES: COUNCIL,MEMBERS: z z NOES: COUNCIL,MEMBERS: ABSENT: COUNCIL,MEMBERS: 4 CITY CLERK Packet Pg. 16 h �" tr � yj I '♦1� � .y-�a ,9� Fid [' A` �J:- .'l lig^ iT 1F + 9 [ 4 4 i� r "R rx rz 0 EIM, , F` 1,,(i "7 d {�k� kit � .�z�•� ��� �<s Psi �,�, s. ,. �,.�-r--t' nn K 0, ks �ga � :r���-•.°i'�C-"T'c� L I r ..� �i ''`� � f f�k �r?`� i'''s' � Vim, �' 3 . R°hti `,,'�+� •6 � �.� 'sem' *�'"r�,�"wr �.; -`'�-� '�,s� *t. - w"'� � . .W y �• _ �� . ,yf� •: •.: � . '� ,� z� ��, .. ��g ✓'yam '� C C� • � , �R.t:-. -.� Na a - . y �i� ����F r 3�i�l Tti ;' S� ✓^� �.s � � i � � l 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 27368 Via Industria Suite 200 JANUARY 2018 Temecula, CA 92590 T 951.587.3500 | 800.755.6864 F 951.587.3510 www.willdan.com/financial CITY OF SANTA CLARITA SANTA CLARITA LANDSCAPING AND LIGHTING DISTRICT ANNEXATION NO. 2018-1 CERTIFICATE This Report and the enclosed budgets, diagrams, and descriptions outline the 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 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____________, 2018. Willdan Financial Services Assessment Engineer By: ________________________________ By:_____________________________ Jim McGuire Richard Kopecky Principal Consultant, Project Manager R. C. E. # 16742 District Administration Services the Assessment Roll and Assessment Diagram thereto attached was filed with me on the _____day of________, 2018. By:_____________________________ Mary Cusick, City Clerk City of Santa Clarita Los Angeles County, California I HEREBY CERTIFY that the enclosthe 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________, 2018. By:_____________________________ Mary Cusick, City Clerk City of Santa Clarita Los Angeles County, California 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 Overview The City of Santa Clarita Landscaping and Lighting Act of 1972, being Part 2, Division 15 of the California Streets and Highways Code, commencing with Section 22500 1972 Act enacted by Proposition 218 has annually levied and collect special s designated as: previously LLA-1); Landscape Maintenance District No. 1 Landscape Maintenance District No. T1 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 . 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 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 SectIn annexation proceedings, the resolutions, report, notices of hearing, and right of majority protest shall be limited to the territory . 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 Final Fiscal Year 2018/2019 Landscaping and Lighting District Page 1 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 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 (No. 1), 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, 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 i- 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. assigned its 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 Final Fiscal Year 2018/2019 Landscaping and Lighting District Page 2 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 XIIID to the California Constitution. The Article XIIID 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 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 XIIID of the California Constitution. 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 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 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 Final Fiscal Year 2018/2019 Landscaping and Lighting District Page 3 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 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 abov 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 Final Fiscal Year 2018/2019 Landscaping and Lighting District Page 4 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 - 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 Final Fiscal Year 2018/2019 Landscaping and Lighting District Page 5 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 Final Fiscal Year 2018/2019 Landscaping and Lighting District Page 6 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 de 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 Final Fiscal Year 2018/2019 Landscaping and Lighting District Page 7 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 Final Fiscal Year 2018/2019 Landscaping and Lighting District Page 8 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 Final Fiscal Year 2018/2019 Landscaping and Lighting District Page 9 Landscaping Zone 2008-1 Annexation Territory Budget: Landscaping and Lighting District, Zone 2008-1 (Major Thoroughfare Medians) Annexation Annexation No. 2018-1 City of Santa Clarita Final Fiscal Year 2018/2019 Landscaping and Lighting District Page 10 Landscaping Zone 28 Annexation Territory Budget: Landscaping and Lighting District, Zone 28 (Newhall) Annexation Annexation No. 2018-1 City of Santa Clarita Final Fiscal Year 2018/2019 Landscaping and Lighting District Page 11 Streetlighting Zone B Annexation Territory Budget: Landscaping and Lighting District, Zone B (Streetlighting) Annexation Maximum Budget Budget ItemsFY 2017/2018 Operation and Maintenance Expenses Personnel Department$ 184,608 95,108 Other Administrative Sub-Total Personnel$ 279,715 Operations & Maintenance Electric Utilities - Street Lights$ 2,326,690 Contractual Services 43,554 15,005 General Administration Sub-Total Operations & Maintenance$ 2,385,249 $ 2,664,965 Total Personnel, Operation & Maintenance Expenses $0 Capital Expenses $ 2,664,965 Total Annual Expenses Funding Adjustments Transfers In$ (95,693) Transfers Out 635 City Contribution - Total Funding Adjustments$ (95,059) Special Benefit (Assessment Revenue Required)$ 2,569,906 (2,242,077) Less Current Zone B Assessment Revenue (FY 2017/2018) Annexation Territory Proportional Assessment Obligation$ 327,829 Annexation No. 2018-1 City of Santa Clarita Final Fiscal Year 2018/2019 Landscaping and Lighting District Page 12 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 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 - 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 - 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 - Plan 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 Final Fiscal Year 2018/2019 Landscaping and Lighting District Page 13 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: on 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... 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. ate\] 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 Final Fiscal Year 2018/2019 Landscaping and Lighting District Page 14 Property immediately adjacent to the trail, however, is only slightly easier to sell.... trails are an Additionally, the National Recreation and Park Association, in June 1985, stated: recreation area, and is of public interest to the taxpayers, who have a stake in a maximum of total 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 visually join 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 Annexation No. 2018-1 City of Santa Clarita Final Fiscal Year 2018/2019 Landscaping and Lighting District Page 15 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, Annexation No. 2018-1 City of Santa Clarita Final Fiscal Year 2018/2019 Landscaping and Lighting District Page 16 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). described below. All properties in the District will be assigned benefit units and land use on a case by case ba non- converted to -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 fit as compared to an SFR as follows: AssessedEBUEBU Land Use Unit x Factor = Rate 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 / Park / School 1 acre x 1.50 = 1.50 EBU / acre Special Cases Varied=Varied EBU Annexation No. 2018-1 City of Santa Clarita Final Fiscal Year 2018/2019 Landscaping and Lighting District Page 17 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 Estimated Applied Applied Land Use Parcels EBU's Assessment Units Acreage Revenue SFR 160 160 - 160.00 $ 10,464.00 MFR 3 6 - 4.50 $ 294.30 VAC 34 - 449.72 666.99 $ 43,620.55 EXE 68 - 600.77 - $ - NRD 32 - 295.01 1,770.04 $ 115,759.90 TOTAL 297 166 1,345.51 2,601.53 $ 170,138.75 Zone 28 Estimated Applied Applied Land Use Parcels EBU's Assessment Units Acreage Revenue SFR 6 6 - 6.00 $ 468.90 VAC 11 - 62.96 86.82 $ 6,784.50 EXE 19 - 74.33 - $ - NRD 31 - 289.57 1,737.38 $ 135,774.48 TOTAL 67 6 426.86 1,830.20 $ 143,027.88 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. 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 Final Fiscal Year 2018/2019 Landscaping and Lighting District Page 18 to the number of family dwelling units on the parcel. For example, a duplex was assigned 0.25 for 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 charge units assigned for people would follow a declining scale. The Table below summarizes the Streetlighting EBU Calculations for Residential Parcels: RESIDENTIAL CLASSIFICATIONSPeople UseSecurityIntensityTotal EBUs SFR and Condos SFR/Condo0.50+0.25+0.25=1.00 per parcel Apartments (2-4 units)1/2 x units+0.25 x units+0.25 APT2 21.00+0.50+0.25=1.75 per parcel 31.50+0.75+0.25=2.50 per parcel 42.00+1.00+0.25=3.25 per parcel Apartments (5-20 units)1/2 x units+1.00+0.25 APT5 52.50+1.00+0.25=3.75 per parcel 2010.00+1.00+0.25=11.25 per parcel Apartments (21-50 units)1/3 x (units-20)+the total EBU for a 20-unit apartment APT21 5010.00+11.25=21.25 per parcel Apartments (51-100 units)1/4 x (units-50)+the total EBU for a 50-unit apartment APT51 10012.50+21.25=33.75 per parcel Apartments (100+ units)1/5 x (units-100)+the total EBU for a 100-unit apartment APT101 1010.20+33.75=33.95 per parcel 17515.00+33.75=48.75 per parcel 20020.00+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 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 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 group D which contains many of the smaller business categories. Several large lots or parcels in Annexation No. 2018-1 City of Santa Clarita Final Fiscal Year 2018/2019 Landscaping and Lighting District Page 19 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: Total EBUs NON-RESIDENTIAL CLASSIFICATIONSPeople UseSecurityIntensity GRP-A Group A Irrigated Farms, Dry Farms, Cemeteries, Dump Sites 1 EBU minimum charge per parcel1.00per parcel Animal Kennels, Nurseries and greenhouses, Industrial GRP-B Group B parking lots, Churches, Private Schools, Petroleum and 1.00+0.50+0.50=2.00per parcel Gas, Utility GRP-C Group C Commercial Parking Lots 1.00+0.50+1.00=2.50per parcel Office & Professional building, Bank, Savings & Loan, GRP-D Group D Service Shop, Lumber Yard, Golf Course, Race 1.00+1.00+1.00=3.00per parcel track/stable, Camp, Home for the Aged Store, Store w/ office or residence, Service Station, Club GRP-E Group E 2.00+1.00+1.00=4.00per parcel & Lodge Hall GRP-F Group F Rooming House (same as 6 unit apartment) 3.00+1.00+0.25=4.25per parcel GRP-G Group G Restaurant, Theater 3.00+1.00+1.00=5.00per parcel Light Manufacturing, Food Processing Plant, GRP-H Group H 2.00+2.00+1.00=5.00per parcel Warehousing, Storage Facilities GRP-I Group I Auto, Recreational Equipment Sales & Service 2.00+2.00+2.00=6.00per parcel Market, Bowling Alley, Skating Rink, Department Store, GRP-J Group J 4.00+2.00+2.00=8.00per parcel Hotel/Motel, Mobile Home Park Group KAll parcels in Group K are assessed a minimum of 3 EBU's Group K-13.00+1.00+1.25=5.25 GRP-K1AOpen Storage0.004973per 100 SqFt of lot GRP-K1BMineral Processing0.005615per 100 SqFt of lot Group K-24.00+1.00+1.25=6.25 GRP-K2APrivate College/University0.001736per 100 SqFt of lot GRP-K2BWholesale, Manufacturing Outlets0.059858per 100 SqFt of lot GRP-K2CAthletic and Amusement Facilities0.027431per 100 SqFt of lot GRP-K2DHeavy Manufacturing0.006382per 100 SqFt of lot GRP-KEHospitals0.012886per 100 SqFt of lot Group K-34.00+1.00+1.50=6.50 GRP-K3AMotion Picture, Radio, T.V.0.010938per 100 SqFt of lot GRP-K3BBusiness Center, Neighborhood Shopping Center0.014449per 100 SqFt of lot GRP-K3CRegional Shopping Center0.021812per 100 SqFt of lot Vacant 0.00+0.00+0.00=0.00per parcel Annexation No. 2018-1 City of Santa Clarita Final Fiscal Year 2018/2019 Landscaping and Lighting District Page 20 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. Estimated Applied Applied Lot Land Use Parcels EBU's Assessment Units Sq Ft Revenue SFR 205 205 - 205.00 $ 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 4 - - 4.00 $ 315.48 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 - 2,582,485 128.42 $ 10,128.49 GRP-K1B 1 - 179,598 10.08 $ 795.01 GRP-K2D 10 - 2,805,759 179.07 $ 14,123.25 GRP-K3B 51 - 15,483,401 2,237.18 $ 176,446.37 SFV 2 - - - $ - VAC 55 - - - $ - EXE 183 - - - $ - SPC 1 47 - 24.25 $ 1,912.60 TOTAL 798 889 21,051,243 4,156.57 $ 327,828.68 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 Final Fiscal Year 2018/2019 Landscaping and Lighting District Page 21 Assessment Rates The Maximum Assessment Rates established for Fiscal Year 2017/2018 and applicable to the Annexation Territory is provided in the following table. FY 2017/18 Balloted FY 2018/19 ZoneMax Assessment Assessment RateRate 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 Final Fiscal Year 2018/2019 Landscaping and Lighting District Page 22 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 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 Final Fiscal Year 2018/2019 Landscaping and Lighting District Page 23 24 Page Final Zone B , Streetlighting Landscaping and Lighting District City of Santa Clarita 1 - o. 2018 Annexation Diagram: Annexation N 1 2018/2019 - Annexation No. 2018 Fiscal Year 25 Page Final 1 - Zone 2008 , Landscaping Landscaping and Lighting District City of Santa Clarita 1 - Annexation Diagram: Annexation No. 2018 1 2018/2019 - Annexation No. 2018 Fiscal Year 26 Page Final 1, Landscaping Zone 28 Landscaping and Lighting District City of Santa Clarita - Annexation Diagram: Annexation No. 2018 1 2018/2019 - Annexation No. 2018 Fiscal Year 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 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 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 Final Fiscal Year 2018/2019 Landscaping and Lighting District Page 27