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HomeMy WebLinkAbout2021-07-13 - AGENDA REPORTS - LLD ANNEX 2021 1 (2)12 Agenda Item: 12 CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR CITY MANAGER APPROVAL: DATE: July 13, 2021 SUBJECT: LANDSCAPE AND LIGHTING DISTRICT ANNEXATION 2021-1 RESOLUTION OF INTENT DEPARTMENT: Neighborhood Services PRESENTER: Kevin Tonoian RECOMMENDED ACTION City Council: 1. Adopt a resolution to approve the Engineer's Report declaring its intention to annex parcels into the Santa Clarita Streetlight Maintenance District, Zone B. 2. Set a public hearing for September 14, 2021, at a time and place to hear comments on this proposed action, and close the time period to receive ballots. BACKGROUND The action before the City Council is the approval of an Engineer's Report (Report) for the purpose of annexing specific parcels throughout the City of Santa Clarita into Santa Clarita Streetlight Maintenance District, Zone B. The Streetlight Maintenance District (SMD) is responsible for funding operations of the 17,186 streetlights owned by and located throughout the City of Santa Clarita (City). As required pursuant to Chapter 1, Article 4 of the Landscaping and Lighting Act of 1972, the attached Report facilitates the annexation of property into Santa Clarita SMD, Zone B. This Report specifically addresses the annexation of 174.27 +/- acres of territory within the City. On November 10, 2020, the City Council approved Master Case 18-089 associated with the Bouquet Canyon Project (Bouquet Canyon). As a condition of the development agreement, Bouquet Canyon was required to annex into SMD, Zone B. In addition to Bouquet Canyon, another seven Master Case projects are required to annex into SMD, Zone B as a condition of each individual approval. Page 1 Packet Pg. 180 rl 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 the attached Report. In conjunction with this Ballot Proceeding, the City Council will conduct a noticed public hearing to consider public testimony, comments, and written protests regarding the annexation of the parcels within Annexation No. 2021-1 and the establishment of the proposed new assessments. As part of these proceedings, staff also recommends the balloting of 50 non -conditioned parcels for annexation into SMD, Zone B. These are non-residential parcels which all derive special benefit from streetlight improvements funded by the City; therefore, it is appropriate to consider balloting as part of this annexation. The City Council's adoption of the resolution of intent and approval of the Report will commence an assessment ballot process, whereby property owners will be presented with the option to annex into SMD, Zone B. Ballots will be mailed to all affected property owners no less than 45 days prior to the public hearing, as required by State Law. This public hearing is scheduled for the September 14, 2021, meeting of the City Council. Upon conclusion of the public hearing, property owner protest ballots received will be opened and tabulated to determine whether a majority protest exists, as defined in Article XIIID 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. In the event a majority protest among all parcel owners returning ballots does not exist, the annexation of parcels into SMD, Zone B would commence beginning in Fiscal Year 2022-23. 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 are $10,000 and will be borne by the applicants conditioned to annex into the Streetlight Maintenance District. ATTACHMENTS Resolution of Intent SMD Annexation No. 2021-1 Engineer's Report (available in the City Clerk's Reading File) Page 2 Packet Pg. 181 12.a RESOLUTION NO. 2 1 - 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 STREETLIGHT MAINTENANCE DISTRICT ZONE B, 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 Streetlight Maintenance District (SMD), Zone B, within the City of Santa Clarita Landscape and Lighting District (LLD), pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2, 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 (Article XIIID), 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; WHEREAS, the parcels proposed to be annexed into SMD, Zone B, have been designated SMD Annexation 2021-1; WHEREAS, the boundaries of SMD Zone B shall be as described on the maps previously presented to this Council and on file with the City Clerk, and are proposed to include the maps presented in the Engineer's Report connected with SMD Annexation 2021-1 for SMD, Zone B, the map(s) entitled Annexation Diagram(s): Annexation No. 2021-1 for SMD, Zone B, and incorporated herein by reference; 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 (Engineer's Report), regarding the proposed annexation of parcels into SMD, Zone B, 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 Packet Pg. 182 12.a the Act and Article XIIID, except that it may be confirmed, modified or corrected as provided in the Act. 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 SMD, Zone B. The City Council hereby declares and finds the land within the boundaries of Annexation No. 2021-1 to be specially benefited by the Improvements and said adjustments associated with SMD, Zone B. SECTION 4. The purpose of the proposed annexation of parcels into SMD, Zone B 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 SMD, Zone B, and the maximum assessments rate and assessments upon the assessable properties in SMD, Zone B. SECTION 5. As set forth in the Engineer's Report, the maximum annual assessment rate will be increased each subsequent fiscal year by the annual change in the Consumer Price Index during the preceding year, for All Urban Consumers, for the Los Angeles, Long Beach and Anaheim 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 2022-23. SECTION 6. The City Council designates Jerrid McKenna, Interim Neighborhood Services Director, 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 13th day of July 2021. ATTEST: CITY CLERK DATE: MAYOR PA Packet Pg. 183 12.a 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 21-_ was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the 131h day of July 2021, by the following vote: AYES: COUNCIL,MEMBERS: NOES: COUNCIL,MEMBERS: ABSENT: COUNCIL,MEMBERS: CITY CLERK P z w z U- O z O H J O co w Packet Pg. 184 Santa Clarita Landscaping and Lighting District Annexation No. 2021-1 Proposed Annexation of Territory to Streetlighting Zone -B (SMD Annexation L-99); Establishment of Annual Assessments Commencing Fiscal Year 2022/2023 Intent Meeting: July 13, 2021 Public Hearing: September 14, 2021 CITY OF SANTA CLARITA 23920 VALENCIA BOULEVARD SANTA CLARITA, CA 91355 27368 Via Industria PREPARED BY Suite 200 WILLDAN FINANCIAL SERVICES Temecula, CA 92590 T 951.587.3500 | 800.755.6864 JUNE 17, 2021 F 951.587.3510 www.willdan.com/financial CITY OF SANTA CLARITA SANTA CLARITA LANDSCAPING AND LIGHTING DISTRICT ANNEXATION NO. 2021-1 CERTIFICATE This Report and the enclosed budget, diagram(s), and descriptions outline the annexation of territory into Streetlighting Zone -within the City of Santa Clarita Landscaping and Lighting District, to be designated as Annexation No. 2021-1 (referred to as SMD Annexation L- 99), including the improvements, parcels, and assessments established for Fiscal Year 2021/2022, 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 2022/2023s for a detailed description of the lines and dimensions of parcels within Landscaping and Lighting District and Annexation No. 2021-1. The undersigned respectfully submits the enclosed Report as directed by the City Council of the City of Santa Clarita. Dated this ______ day of____________, 2021. Willdan Financial Services Assessment Engineer By: ________________________________ By:_____________________________ Stacee Reynolds Tyrone Peter Senior Project Manager R. C. E. # C81888 District Administration Services the Assessment Roll and Assessment Diagrams thereto attached was filed with me on the _____day of________, 2021. By:_____________________________ Mary Cusick, City Clerk City of Santa Clarita Los Angeles County, California the Assessment Roll and Assessment Diagrams thereto attached was approved and confirmed by the City Council of the City of Santa Clarita, California, on the _____day of________, 2021. By:_____________________________ Mary Cusick, City Clerk City of Santa Clarita Los Angeles County, California Overview 1 Ballot Proceedings 2 Assessment Range Formula (Consumer Price Index Adjustment) 3 PART I - PLANS AND SPECIFICATION 5 Description of the Annexation Territory 5 Lighting Improvements Authorized by the 1972 Act 6 Streetlighting Improvements Applicable to Annexation Territory 7 PART II - ESTIMATE OF COSTS 9 PART III METHOD OF APPORTIONMENT OF ASSESSMENTS 10 Reason for the Assessment 10 Special Benefit Analysis 10 Streetlighting Improvement Benefits 10 General Benefits 11 General Benefit within Lighting Zones 11 Streetlighting Apportionment Methodology 12 Assessment Rates 15 PART IV ANNEXATION DIAGRAMS 16 PART V ASSESSMENT ROLL 19 Overview 1972, Part 2 of Division 15 of the provisions of the California Constitution Article XIII D enacted by Proposition 218 (the assessment districts designated as the Santa Clarita Landscaping and Lighting District (the City that provide special benefits to properties within the District. Collectively, the District incorporates and is inclusive of Street Lighting 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, T1, T1B, T2, T2A, T3,T3B, T4, T5, T6, T7, T8, T17, T20, T23, T23- 1, T23-2, T23A, T23B, T29, T31-1,T31-1A, T31-2, T33, T44, T46, T47, T48, T51, T52, T62, T65, T65A, T65B, T67, T68, T69, T71, and T77 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 In 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 ation 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 (specifically Streetlighting Zone B). This Report specifically addresses the annexation of approximately one hundred sixty-nine (169.04) acres of territory within the City of Santa Clarita consisting of seventeen (17) conditioned properties (non- residential/residential) and fifty (50) unconditioned properties (non-residential) to be designated and referred to as: Santa Clarita Landscaping and Lighting District, Annexation No. 2021-1 (2021-1 SMD Annexation L-99), and the establishment of the maximum annual assessments related thereto, to be levied and collected upon properties within Annexation No. 2021-1 commencing in Fiscal Year 2022/2023 for the special benefits received by each property from the maintenance and servicing of streetlighting improvements to be provided by the City through the District. The parcels within Annexation No. 2021-1 are Pla For Fiscal Year 2021/2022, the City Council of the City of Santa Clarita proposes to annex the various parcels and developments referenced as Annexation No. 2021-1 into Streetlighting Zone Annexation No. 2021-1 City of Santa Clarita Final Fiscal Year 2021/2022 Landscaping and Lighting District Page 1 B to provide an annual funding source to adequately support the ongoing maintenance, servicing, operation, and incidental expenses associated with the streetlighting and appurtenant facilities and amenities that benefit the identified properties within Annexation No. 2021-1 and the new boundaries of Zone B 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 the parcels within Annexation No. 2021-1 to Streetlighting Zone B of the District pursuant to the 1972 Act and the California Constitution. One or more Annexation Diagrams identifying the territory and location of the parcels being annexed into Streetlighting Zone B (SMD Annexation L-99) as part of Annexation No. 2021-1 - 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 parcels within Annexation No. 2021-1, 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. purposes of this Report, refers to an individual property 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 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, Annexation No. 2021-1 City of Santa Clarita Final Fiscal Year 2021/2022 Landscaping and Lighting District Page 2 comments, and written protests regarding the annexation of the parcels within Annexation No. 2021-1 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. 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 within the proposed Annexation No. 2021-1 territory and implementation of the new assessments for those parcels shall be abandoned at this time. If tabulation of the ballots indicate that majority protest does not exist for the proposed assessments and the assessment range formula presented and described herein, the City Council may adopt this Report (as submitted or amended); approve the assessment diagram(s) contained herein (Annexation Diagrams); order the annexation of the parcels within Annexation No. 2021-1 to Streetlighting Zone B of the District and the related improvements to be made; and confirm the new assessments for such parcels as outlined in this Report. The assessments as approved including the assessment range formula, may be levied, and collected on the County tax rolls commencing in Fiscal Year 2022/2023 together with the assessments for other properties in the District. For Fiscal Year 2022/2023 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 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. 2021-1, 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 Street Lighting Zone, A, and Landscaping Zones T20, T33, T44, T48 and T62, the authorized maximum assessment rates for each Zone 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-Long Beach-Anaheim 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 to be presented to the property owners of record within Annexation No. 2021-1 as part of the Ballot Proceeding, are based on the current (Fiscal Year 2021/2022) maximum assessment rate for Streetlighting Zone Annexation No. 2021-1 City of Santa Clarita Final Fiscal Year 2021/2022 Landscaping and Lighting District Page 3 B of $88.12 and the method of apportionment established for the Zone. This maximum assessment rate shall be adjusted according to the assessment range formula described above for Fiscal Year 2022/2023 assessment rate and parcel assessment amounts for parcels within Streetlighting Zone B including the parcels within Annexation No. 2021-1 as described herein, may be adjusted accordingly for the assessments in Fiscal Year 2022/2023. Annexation No. 2021-1 City of Santa Clarita Final Fiscal Year 2021/2022 Landscaping and Lighting District Page 4 Description of the Annexation Territory This Annexation Territory (Annexation No. 2021-1), incorporates approximately one hundred seventy-four (174.274) acres of territory within the City of Santa Clarita consisting of eight (8) planned developments (Master Case developments) which include: th Master Case No. 19-216 which is located on the south side of 6 Street and the west side of Main Streets: Book 2831, Page 018, Parcel 031. At build-out, this development project will include a restaurant and banquet facility; Master Case No. 17-138 which is located on the south side of Sierra Highway and the east side of Friendly Valley Parkway. This master case development includes the following 42, Page 007, Parcel 054. At build-out, this development project will include a convenience store and a four-island gas station; Master Case No. 19-046 which is located on the south side of Soledad Canyon Road and east of Sierra Highway. This master case devel Parcels: Book 2844, Page 001, Parcels 038, 060, 062, 063, 069, 073, 074 and 075. At build- out, this development project will include one hundred forty-seven (147) residential units and retail space; Master Case No. 18-256 which is located on the north of Wiley Canyon Road and west of Orchard Village Road. Parcel: Book 2857, Page 001, Parcel 039. At build-out, this development project will include 30 airspace condominiums within a proposed medical office building; Master Case No. 18-089 which is on Bouquet Canyon Road. This master case development At build-out, this development project will include three hundred seventy-five residential units (single-family and townhomes); Master Case No. 17-175 which is located on the north side of Valencia Blvd and the west side of Bouquet Canyon Road. This master case development includes the following 11, Page 066, Parcel 001. This area includes a gas station and car wash and will have vacuum stations and parking added; Master Case No. 17-172 which is located on the west side of Sierra Trail Highway and on the north side and south side of Dockweiler Drive. This master case development includes the s: Book 2833, Page 018, Parcels 024 and 025. At build-out, this development project will include ninety-three (93) single family detached homes; Master Case 20-262 which is located on the north side of Newhall Avenue. This master case 33, Page 016, Parcel 901. At build-out, this development project will include two commercial buildings containing four (4) two-bedroom units in building one and four (4) offices, one (1) bedroom, a communal kitchen, and a communal living space in building two. Annexation No. 2021-1 City of Santa Clarita Final Fiscal Year 2021/2022 Landscaping and Lighting District Page 5 In addition to the above Master Case projects, Annexation 2021-1 includes an additional fifty (50) non-conditioned parcels comprising of non-residential properties, which include: Twenty-two (22) parcels located in the vicinity of Lyons Avenue and Wiley Canyon; One (1) parcel located on the west side of Railroad Avenue and north of Lyons Avenue; th Nine (9) mixed use parcels located east of Railroad Avenue and north of 12 Street; Four (4) parcels in the vicinity of Soledad Canyon Road; One (1) parcel located on the north side of Lyons Avenue and west of Orchard Village Road; Four (4) parcels located in the vicinity of McBean Parkway; One (1) parcel located on the South side of Magic Mountain Parkway and east of Valencia Boulevard; Eight (8) parcels located in the vicinity of Bouquet Canyon and Newhall Ranch. Collectively, this annexation territory is proposed to be annexed into Streetlighting Zone B (SMD Annexation L-99) with levied assessments commencing in Fiscal Year 2022/2023. Lighting Improvements Authorized by the 1972 Act As may be applicable to the District and specifically the Report regarding Annexation 2021-1 and streetlighting, the 1972 Act defines improvements to mean one or any combination of the following: The installation or construction of public lighting facilities. The maintenance and/or servicing of any public lighting facilities. The acquisition of any existing lighting improvement otherwise authorized pursuant to this section. Incidental expenses associated with the lighting improvements which 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 giving of published, posted, and mailed notices; Compensation payable to the county for collection of assessments; Compensation of any engineer or attorney employed to render services in the proceeding; 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. Annexation No. 2021-1 City of Santa Clarita Final Fiscal Year 2021/2022 Landscaping and Lighting District Page 6 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 the repair, removal, or replacement of all or any part of any lighting improvement. Streetlighting Improvements Applicable to Annexation Territory Street Lighting Zones within the District were established to collect funds to cover the expenses for energy and maintenance of streetlights in the City. These costs are billed by the Southern California Edison Company for the operation of approximately 18,750 streetlights, inclusive of decorative and Highway Safety Lights (HSL) streetlights. In May of 2018, the California Public Utilities Commission approved sale of the Edison-owned streetlight system to the City of Santa Clarita. As of April 2021, Edison has transferred ownership of 17,186 streetlight poles to the City. The proposed new and/or existing improvements for Street Lighting Zones A and B include, but are not limited to, and may be generally described as follows: The installation of street lighting, 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 street lighting, 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 District and may be secured by and/or payable from a 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 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 2018-19 and continuing through 2048-49. The maximum annual installment payment is estimated to be an amount not to exceed $860,063 (assuming 30-year financing), which is to be included in the annual budget of the 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 2021/2022. Plans and Specifications for the improvements within the Street Lighting Zones are voluminous and are not bound in this report but by this reference are incorporated and Annexation No. 2021-1 City of Santa Clarita Final Fiscal Year 2021/2022 Landscaping and Lighting District Page 7 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. 2021-1 City of Santa Clarita Final Fiscal Year 2021/2022 Landscaping and Lighting District Page 8 The estimated costs for the operation, acquisition, installation, maintenance, and servicing of the facilities within Streetlighting Zone B, Assessment Obligation if the Annexation Territory was included in the Zones for Fiscal Year 2021/2022 is shown below. 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 District Zones including the Lighting Zones 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. L-99 Budget Estimates TOTAL LOTS OR PARCELS: 68 ASSESSED LOTS OR PARCELS: 67 NUMBER OF BALLOTED SUMMARY BY TYPE OF LAND USE PARCELS BENEFIT UNITS Non-Residential (APT101) 179.249 3 Non-Residential (APT-101 and GRP-E) 47.150 8 Non-Residential (GRP-E) 8.000 2 Non-Residential (GRP-F) 4.25 1 Non-Residential (GRP-G) 5.000 1 Non-Residential (GRP-C) 2.500 1 Non-Residential (GRP-D) 30.000 10 Non-Residential (GRP-E) 32.000 8 Non-Residential (GRP-G) 14.000 3 Non-Residential (GRP-H) 15.000 3 Non-Residential (GRP-I) 29.000 5 Non-Residential (GRP-J) 8.000 1 Non-Residential (GRP-K2E) 28.935 2 Non-Residential (GRP-K3B) 224.126 13 Residential 498.000 6 Vacant 0.000 1 Total 68 1,125.210 MAXIMUM ASSESSMENT BUDGET ITEM FY 2021/2022 Maximum Funds $99,153.50 Available Carryover N/A Total Maximum Assessment $99,153.50 Note: Full FY 2021/22 Streetlighting Budget included in Annual Landscape and Annexation No. 2021-1 City of Santa Clarita Final Fiscal Year 2021/2022 Landscaping and Lighting District Page 9 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 - 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. 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. Annexation No. 2021-1 City of Santa Clarita Final Fiscal Year 2021/2022 Landscaping and Lighting District Page 10 The proper maintenance of the streetlighting and appurtenant facilities specially benefit parcels within the Streetlighting Zones of the District. The proper maintenance of the streetlighting and appurtenant facilities reduces property-related crimes (especially vandalism) against properties in the Streetlighting Zones. The streetlighting located in the District helps to visually join the various segments of the community, which enhance property. 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 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 Lighting Zones In addition to the special benefits received by the parcels within Streetlighting Zone B, there are incidental general benefits conferred by streetlight improvements. It is estimated that the general benefit portion of the benefit received from the lighting improvements is 14.5 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. Annexation No. 2021-1 City of Santa Clarita Final Fiscal Year 2021/2022 Landscaping and Lighting District Page 11 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 contributions from the ad valorem street lighting revenues. Streetlighting Apportionment 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 Distric 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 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. Annexation No. 2021-1 City of Santa Clarita Final Fiscal Year 2021/2022 Landscaping and Lighting District Page 12 Table 1 summarizes the Residential EBU Calculation: Table 1 - EBU Calculations for Residential Parcels: RESIDENTIAL CLASSIFICATIONSPeople UseSecurityIntensityTotal EBUs SFR/CondoSFR and Condos0.50+0.25+0.25=1.00 per parcel APT2Apartments (2-4 units)1/2 x units+0.25 x units+0.25 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 APT5Apartments (5-20 units)1/2 x units+1.00+0.25 52.50+1.00+0.25=3.75 per parcel 2010.00+1.00+0.25=11.25 per parcel APT21Apartments (21-50 units)1/3 x (units-20)+the total EBU for a 20-unit apartment 5010.00+11.25=21.25 per parcel APT51Apartments (51-100 units)1/4 x (units-50)+the total EBU for a 50-unit apartment 10012.50+21.25=33.75 per parcel APT101Apartments (100+ units)1/5 x (units-100)+the total EBU for a 100-unit apartment 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 buted 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 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. Annexation No. 2021-1 City of Santa Clarita Final Fiscal Year 2021/2022 Landscaping and Lighting District Page 13 Table 2 summarizes the Non-Residential EBU calculation: Table 2 - EBU Calculations for Non-Residential Parcels: NON-RESIDENTIAL CLASSIFICATIONSPeople UseSecurityIntensityTotal EBUs Group A 1 EBU minimum charge per parcel GRP-A Irrigated Farms, Dry Farms, Cemeteries, Dump Sites 1.00per parcel Animal Kennels, Nurseries and greenhouses, GRP-B Group B Industrial parking lots, Churches, Private Schools, 1.00+0.50+0.50=2.00per parcel Petroleum and Gas, Utility Group C GRP-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, Group E GRP-E 2.00+1.00+1.00=4.00per parcel Club & Lodge Hall Group F GRP-F Rooming House (same as 6 unit apartment) 3.00+1.00+0.25=4.25per parcel Group G GRP-G Restaurant, Theater 3.00+1.00+1.00=5.00per parcel Light Manufacturing, Food Processing Plant, Group H GRP-H 2.00+2.00+1.00=5.00per parcel Warehousing, Storage Facilities Group I GRP-I Auto, Recreational Equipment Sales & Service 2.00+2.00+2.00=6.00per parcel Market, Bowling Alley, Skating Rink, Department Group J GRP-J 4.00+2.00+2.00=8.00per parcel Store, Hotel/Motel, Mobile Home Park Group K All 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 Exempt Parcels The following properties generally do not benefit from the improvements and services being provided and may be exempt from the assessment: areas of public streets, avenues, lanes, roads, drives, courts, alleys, public easements or rights-of-way, and District improvement areas, many empt are parcels identified as railroad rights-of way, utility easements and rights-of-way used exclusively for utility transmission, shared common areas (such as in condominium complexes), land dedicated as public open space or parks, small parcels vacated by the City, parcels with notable development restrictions (the City or Assessment Engineers has determined that the parcel cannot be developed or developed independently from any contiguous parcel with the same ownership). Annexation No. 2021-1 City of Santa Clarita Final Fiscal Year 2021/2022 Landscaping and Lighting District Page 14 Assessment Rates The Streetlighting Zone B Maximum Assessment Rate established for Fiscal Year 2021/2022 and applicable to the Annexation Territory is provided in the following table. FY 2021-22 Maximum Zones Assessment Street Lighting Zone A $12.38 / EBU Street Lighting Zone B $88.12 / EBU Annexation No. 2021-1 City of Santa Clarita Final Fiscal Year 2021/2022 Landscaping and Lighting District Page 15 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 Diagram(s) (Assessment Diagrams) for the Annexation Territory (Annexation 2021-1) relating to Streetlighting Zone B as described in this Report is provided on the following page. The parcels that comprise the Annexation 2021-1 consist of all lots, parcels, and subdivisions of land listed on the Assessment Roll contained herein as Part V. The lines and this Report was prepared and are incorporated by reference herein and made part of this Report. Annexation No. 2021-1 City of Santa Clarita Final Fiscal Year 2021/2022 Landscaping and Lighting District Page 16 17 Page ) Final Conditioned ( , Streetlighting Zone B 1 - 2021 City of Santa Clarita Landscaping and Lighting District 1 - 2021/2022 Annexation No. 2021Fiscal Year Annexation Diagram: Annexation No. 18 Page Final Conditioned) - (Non , Streetlighting Zone B 1 - Lighting District 2021 City of Santa Clarita Landscaping and 1 - 2021/2022 Annexation No. 2021Fiscal Year Annexation Diagram: Annexation No. The Assessment Roll incorporates each parcel identified within the Annexation Territory (Annexation 2021-1) and the balloted maximum assessment amount proposed based on the Fiscal Year 2021/2022 maximum assessment rates. Each parcel listed on the Assessment Roll is 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 2022/2023. Balloted Land Use Balloted Maximum Balloted Maximum APN Designation EBU Assessment Rate Assessment 2811-066-001 GRP-E 4.000 $88.12 $352.48 2812-008-003 RES 81.000 88.12 7,137.72 2812-008-022 RES 225.000 88.12 19,827.00 2812-008-031 RES 69.000 88.12 6,080.28 2825-016-131 GRP-G 4.000 88.12 352.48 2825-016-132 GRP-E 4.000 88.12 352.48 2825-016-133 GRP-E 4.000 88.12 352.48 2829-001-062 GRP-E 4.000 88.12 352.48 2829-001-064 GRP-K3B 5.413 88.12 476.99 2829-001-090 GRP-K3B 4.116 88.12 362.70 2829-001-091 GRP-K3B 22.973 88.12 2,024.38 2829-003-004 GRP-D 3.000 88.12 264.36 2829-003-005 GRP-D 3.000 88.12 264.36 2829-003-006 GRP-D 3.000 88.12 264.36 2829-005-049 GRP-C 2.500 88.12 220.30 2829-005-050 GRP-G 5.000 88.12 440.60 2829-005-051 GRP-D 3.000 88.12 264.36 2829-005-052 GRP-G 5.000 88.12 440.60 2829-005-079 GRP-D 3.000 88.12 264.36 2829-005-123 GRP-D 3.000 88.12 264.36 2830-001-037 GRP-J 8.000 88.12 704.96 2830-001-043 GRP-K3B 3.355 88.12 295.64 2830-001-208 GRP-D 3.000 88.12 264.36 2830-006-048 GRP-I 6.000 88.12 528.72 2830-006-049 GRP-D 3.000 88.12 264.36 2830-013-060 APT101 63.350 88.12 5,582.40 2831-003-027 GRP-I 6.000 88.12 528.72 2831-018-031 GRP-I 5.000 88.12 440.60 2833-016-901 GRP-F 4.250 88.12 374.51 2833-018-024 RES 20.000 88.12 1,762.40 Annexation No. 2021-1 City of Santa Clarita Final Fiscal Year 2021/2022 Landscaping and Lighting District Page 19 Balloted Land Use Balloted Maximum Balloted Maximum APN Designation EBU Assessment Rate Assessment 2833-018-025 RES 73.000 88.12 6,432.76 2834-009-037 GRP-H 5.000 88.12 440.60 2834-009-038 GRP-D 3.000 88.12 264.36 2834-009-044 GRP-D 3.000 88.12 264.36 2834-009-045 GRP-I 6.000 88.12 528.72 2834-009-047 GRP-I 6.000 88.12 528.72 2834-009-048 GRP-E 4.000 88.12 352.48 2834-009-050 GRP-E 4.000 88.12 352.48 2834-009-052 GRP-H 5.000 88.12 440.60 2834-009-053 GRP-H 5.000 88.12 440.60 2842-007-054 GRP-E 4.000 88.12 352.48 2844-001-038 APT-101 and GRP E 6.340 88.12 558.68 2844-001-060 APT-101 and GRP E 3.000 88.12 264.36 2844-001-062 APT-101 and GRP E 1.750 88.12 154.21 2844-001-063 APT-101 and GRP E 21.940 88.12 1,933.35 2844-001-069 APT-101 and GRP E 2.420 88.12 213.25 2844-001-073 APT-101 and GRP E 1.370 88.12 120.72 2844-001-074 APT-101 and GRP E 6.150 88.12 541.94 2844-001-075 APT-101 and GRP E 4.180 88.12 368.34 2849-023-005 GRP-K3B 8.560 88.12 754.31 2849-023-006 GRP-K3B 5.853 88.12 515.77 2849-023-007 GRP-E 4.000 88.12 352.48 2849-023-009 GRP-E 4.000 88.12 352.48 2849-025-001 GRP-K3B 3.000 88.12 264.36 2849-025-002 GRP-K3B 3.000 88.12 264.36 2849-025-003 Group G 5.000 88.12 440.60 2849-025-007 GRP-K3B 12.368 88.12 1,089.87 2849-025-010 Vacant 0.000 88.12 0.00 2849-025-011 Group E 4.000 88.12 352.48 2849-025-012 GRP-K3B 5.797 88.12 510.83 2849-025-013 GRP-K3B 17.504 88.12 1,542.45 2856-011-216 GRP-K3B 46.727 88.12 4,117.58 2857-001-039 RES 30.000 88.12 2,643.60 2860-016-006 GRP-K3B 85.460 88.12 7,530.74 2860-029-051 APT101 55.350 88.12 4,877.44 2861-036-011 GRP-K2E 11.630 88.12 1,024.84 2861-036-014 GRP-K2E 17.305 88.12 1,524.92 2861-050-006 APT101 60.549 88.12 5,335.58 Total 1,116.960 $99,153.50 Annexation No. 2021-1 City of Santa Clarita Final Fiscal Year 2021/2022 Landscaping and Lighting District Page 20