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HomeMy WebLinkAbout2025-12-09 - AGENDA REPORTS - LLD ANNEX L-101 RESO OF INTENT INITIATING PROCEEDINGSO Agenda Item: 7 CITY OF SANTA CLARITA .` AGENDA REPORT 1W CONSENT CALENDAR CITY MANAGER APPROVAL: DATE: December 9, 2025 SUBJECT: LANDSCAPE AND LIGHTING DISTRICT ANNEXATION L-101 RESOLUTIONS OF INTENT AND INITIATING PROCEEDINGS DEPARTMENT: Administrative Services PRESENTER: Andrew Adams RECOMMENDED ACTION City Council: 1. Adopt a resolution to approve the Engineer's Report declaring its intention to annex parcels, including Riverview Community (Master Case 21-205); River Walk Mixed Use (Master Case No. 25-008); Sierra West Senior Living Facility (Master Case 18-235); Newhall Avenue McDonalds (Master Case 22-244); and various other parcels into the Santa Clarita Landscape and Lighting District (LLD), Streetlight Maintenance District Zone B. 2. Adopt a resolution to initiate proceedings, make certain designations in connection with the annexation of parcels into the LLD, and to levy assessments beginning in Fiscal Year 2026-27. 3. Set a public hearing for February 24, 2026, 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 initiation of proceedings for Santa Clarita Landscaping and Lighting District (LLD) Annexation No. 2025-1 (SMD Annexation L-101). This action includes approving the draft Engineer's Report (ER) for the purpose of annexing specific parcels into Street Lighting Zone B of the City of Santa Clarita's (City) LLD, established under Part 2, Division 15 of the California Streets and Highways Code, the Landscaping and Lighting Act of 1972 (1972 Act), and Article XIIID of the California Constitution (Proposition 218). The Santa Clarita LLD consists of Street Lighting Zones A and B and numerous Landscaping Zones. Pursuant to Chapter 2, Article 2 of the 1972 Act, the City Council may annex territory Page 1 Packet Pg. 64 O and levy assessments for the maintenance, operation, and administration of the District. Section 22608 of the 1972 Act provides that annexation proceedings, including resolutions, reports, notices, and protest rights, apply only to the territory proposed for annexation. The SMD Annexation L-101 encompasses approximately 81.914 acres, consisting of 14 planned developments, each tied to a specific Master Case entitlement. Certain parcels currently within Street Lighting Zone A are being transferred to Zone B, while all remaining identified parcels currently outside any lighting district —will be annexed directly into Zone B. The parcels proposed for transfer include APNs: 2803-010-033; 2831-007-001; 2831-012-041; 2831-012- 022; 2831-012-023; 2831-012-024; 2831-012-027; 2836-011-018; 2844-001-032; 2844-001-034; 2844-001-046; 2849-024-019; and 2849-024-029. The draft ER establishes maximum annual assessments for each parcel, to be levied beginning in Fiscal Year (FY) 2026-27, based on the proportional special benefits received from the City's maintenance and operation of public streetlighting improvements within Zone B. These improvements include the operation, maintenance, and servicing of approximately 18,750 streetlights, 17,791 of which were transferred to City ownership following the 2018 CPUC- approved acquisition from Southern California Edison. The SMD Annexation L-101 includes MC Developments • MC 18-235: Sierra West Senior Living Facility • MC 25-008: River Walk Mixed Use • MC 21-165: Single -Family Residence, Atwood Boulevard • MC 21-205: Riverview Community • MC 21-238: Garden Terrace Restaurant, Lyons Avenue and Main Street • MC 21-239: Commercial Expansion, Walnut Street • MC 22-004: Starbucks Drive-Thru, McBean Parkway • MC 22-026: Commercial Building, Pine Street • MC 22-034: Jack in the Box Remodel, Crossglade Avenue • MC 22-244: McDonald's, Newhall Avenue • MC 23-027: School District Facility, Ruether Avenue • MC 24-117: Car Wash, Center Pointe Parkway • MC 24-212: Automated Car Wash, Valley Center Drive • MC 25-089: Hartwell Mixed Use Streetlighting g Improvements and Benefits Streetlighting improvements funded through Zone B include: • Installation, operation, maintenance, and servicing of streetlights, traffic signals, and appurtenant facilities within City rights -of -way. • Energy costs for streetlight operation. • Debt service on bonds issued for the acquisition and conversion of streetlights. Streetlighting provides a distinct special benefit by enhancing nighttime visibility, improving vehicular and pedestrian safety, reducing property -related crimes, and supporting commercial viability and residential livability for nearby parcels. The general benefit portion of the Page 2 Packet Pg. 65 O streetlighting system is estimated at 14.5 percent, which is not assessed to parcels but covered by other City funds. Method of Assessment Assessments are based on proportional special benefits, consistent with the 1972 Act and Proposition 218. The Equivalent Benefit Unit (EBU) methodology is used to assign proportional benefit values to residential and non-residential parcels, considering factors such as People Use, Intensity, and Security Benefit. Residential parcels are benchmarked to a single-family unit (1 EBU), with multi -family or commercial parcels weighted proportionally. Proposition 218 Ballot Proceedings Upon approval of the Resolution of Intention and the draft ER, the City will initiate the Proposition 218 ballot process. Ballots will be mailed to affected property owners at least 45 days prior to the public hearing. A public hearing is scheduled for February 24, 2026, where the City Council will consider testimony, written protests, and weighted ballot results. If a majority protest exists, the annexation cannot proceed. If no majority protest exists, the Council may confirm the annexation and assessments, which will apply beginning FY 2026-27. ALTERNATIVE ACTION Other direction as determined by the City Council. FISCAL IMPACT 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 LLD. ATTACHMENTS SMD Annexation L 10 1 -Resolution of Initiation SMD Annexation L 10 1 -Resolution of Intent SMD Annexation No. 2025-1 Engineer's Report (available in the City Clerk's Reading File) Page 3 Packet Pg. 66 7.a RESOLUTION NO. 25- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, INITIATING PROCEEDINGS FOR THE PROPOSED ANNEXATION OF PARCELS INTO STREET LIGHTING ZONE B WITHIN THE CITY OF SANTA CLARITA LANDSCAPING AND LIGHTING DISTRICT (SMD ANNEXATION L-101) WHEREAS, the City Council of the City of Santa Clarita (City) desires to undertake proceedings pursuant to the provisions of the Landscaping and Lighting Act of 1972, being Part 2 of Division 15 of the Streets and Highways Code of the State of California (1972 Act), and in accordance with the requirements of Section 4 of Article XIIID of the California Constitution (Proposition 218), to annex parcels into Street Lighting Zone B (Zone B) within the City of Santa Clarita Landscaping and Lighting District (District), such parcels to be annexed being designated as "SMD Annexation L-101;" and WHEREAS, the boundaries of Zone B shall be as described on the maps previously presented to this Council and on file with the City Clerk, and the general boundaries of the parcels to be annexed as a part of SMD Annexation L-101 are attached hereto as Exhibit "A," all of which are incorporated herein by reference; and WHEREAS, the City has approved a consulting contract with Willdan Financial Services (Willdan), designating the firm as the Assessment Engineer responsible for preparing the Engineer's Report and assisting in the assignment of the maximum assessment for parcels within SMD Annexation L-101. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: SECTIONI: The City Council proposes to annex the SMD Annexation L-101 parcels into Zone B. The boundaries of the District, specifically Zone B, are as described on the maps previously presented to this Council and on file with the City Clerk, including the initial establishment of Street Lighting Zone B, and including all previously approved annexations to Zone B. SECTION 2: The purpose of the proposed annexation of parcels into Zone B is related to various residential and non-residential parcels located throughout the City, generally shown in Exhibit "A," and as will be more particularly identified in the Engineer's Report. The purpose of SMD Annexation L-101 is to fund improvements that provide a special benefit to those annexed parcels that are equivalent to improvements currently funded by Zone B. SECTION 3: The improvements maintained within Zone B and the improvements to be maintained by SMD Annexation L-101 confer distinct and special benefit upon the parcels identified for annexation as part of SMD Annexation L-101. SECTION 4: The City Council designates Willdan, an engineer registered pursuant to Page 1 of 2 Packet Pg. 67 7.a the Professional Engineers Act (Chapter 7, commencing with Section 6700, of Division 3 of the Business and Professions Code), to be the Assessment Engineer for the proposed annexation of parcels into Zone B, identified as SMD Annexation L-101. Willdan is hereby ordered to prepare and file an Engineer's Report for the City Council's review, consideration, and adoption in accordance with the 1972 Act and the laws of the State of California. herein. SECTION 5: The recitals to this resolution are true and correct and are incorporated SECTION 6: This resolution shall take effect immediately. SECTION 7: 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 day of 2025. MAYOR ATTEST: CITY CLERK DATE: STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution No. 25-_was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the day of 2025, by the following vote AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: CITY CLERK Page 2 of 2 Packet Pg. 68 7.a SMD Annexation L-101 City of Santa Clarita MAP REFERENCE NUMBER ASSESSORS'S PARCEL NUMBER 1 2861-062-049 2 2836-011-018 3 2849-024-029 4 2849-024-019 5 2836-016-044 6 2836-017-903 7 2803-010-033 8 2844-001-046 9 2844-001-034 10 2844-001-032 11 2844-001-072 12 2844-001-033 MAP REFERENCE NUMBER ASSESSORS'S PARCEL NUMBER 13 2844-001-068 14 2829-021-003 15 2831-007-001 16 2831-012-041 17 2831-012-027 18 2831-012-022 19 2831-012-024 20 2831-012-023 21 2831-023-045 22 2833-014-043 23 2833-014-044 24 2827-005-048 )WWILLDAN O z N J w U Q a LL O z O QH X w z z Q c 0 Y m .E 4- 0 c O 0 N a� Packet Pg. 70 7.a SMD Annexation L-101 NVWILLDAN City of Santa Clanta III ILI rrr � 4 _ � /►Aiiwrrr�t !•1 ' 4ti Ilnilll I L'-.� - _- a _ 1 r IF IFII 1' -- � 111 nu !!1 r'r~ rrrul ■ - r+ ti.► J � 11 n r c 0 c 0 0 rn N I Packet Pg. 71 SMD Annexation L-101 City of Santa Clarita LA A Canyon Rd soleda u N W+ E S NVWILLDAN 13 SMI) Annexation L-1 01 Parcels 0 F- z U) —i LU CL ILL 0 z 0 F- X LU z z 0 .E 4- 0 C 0 O Cu X Q U) E C.) I Packet Pg. 72 1 7.a SMD Annexation L-101 'VIIWILLDAN City of Santa Clarita Lardscaping and LightingLightirg District -- �� J �kV JA DI - o 14CID _l .t N°'�` Legend ON W ) SM D Annexation L-101 Parcels 5 — Surroundin Parcels O I— z U) J LU U a 12 ILL z O a X LLI z z a r O 0 0 a� 0 J C O Cu X a 0 U) C d t V a Packet Pg. 73 7.a SMD Annexation L-101 City of Santa ClaHta Landscaping and Lighting District 18 6 at�e5. s 1� . y, . 19 20 g� r� INZ 23 ON NVWILLDAN nd SMD Annexation L-1D1 Parcels Surrounding Parcels Packet Pg. 74 7.a SMD Annexation L-101 'VIIWILLDAN City of Santa Clarita Landscaping and Lighbnq District it i + I• +ti 24 zl N 7 i x Legend E SMD Annexation L-101 Parcels Surreundin Parcels Packet Pg. 75 7.b RESOLUTION NO. 25- 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 STREET LIGHTING ZONE B WITHIN THE CITY OF SANTA CLARITA LANDSCAPING AND LIGHTING DISTRICT, AND TAKING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH (SMD ANNEXATION L-101) WHEREAS, the City Council of the City of Santa Clarita (City), pursuant to the provisions of the Landscaping and Lighting Act of 1972, being Part 2 of Division 15 of the Streets and Highways Code of the State of California (1972 Act), and as provided by Section 4 of Article XIIID of the California Constitution (Proposition 218), has initiated proceedings to annex parcels into Street Lighting Zone B (Zone B) within the City of Santa Clarita Landscaping and Lighting District (District) to fund the continuing costs of installation, servicing and maintenance of improvements within public rights -of -way and dedicated easements within Zone B; and WHEREAS, the parcels proposed to be annexed into Zone B have been designated as "SMD Annexation L-101;" and WHEREAS, the boundaries of Street Lighting 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 2025-1 for the map(s) entitled "Annexation Diagram(s): SMD Annexation L-101, Street Lighting Zone B" and incorporated herein by reference; and WHEREAS, the City's Assessment Engineer has prepared and filed with the City Clerk a report (Engineer's Report or Report), and the City Clerk has presented to the City Council such report regarding the proposed annexation of SMD Annexation L-101 parcels into Zone B. 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, as presented, consists of the following: The Plans and Specifications describe the boundaries of SMD Annexation L-101, and the improvements associated therewith that provide special benefits to the parcels therein. The Method of Apportionment details the method of calculating proportional special benefit and the annual assessment obligation for each affected parcel. The Estimate of Improvement Costs includes the calculation of the assessments and the estimated annual funding (Budgets) required for the annual maintenance, servicing, and operation of lighting improvements and appurtenant facilities, and specifically the costs Page 1 of 4 Packet Pg. 76 7.b associated with the improvements determined to be of special benefit to parcels within SMD Annexation L-101, establishing the proposed maximum assessment rates. The proposed Maximum Assessments shall be presented to the property owner(s) of record in a protest ballot proceeding pursuant to the California Constitution Article XIIID. District diagram(s) outlining the parcels proposed to be annexed as part of SMD Annexation L-101. Assessment Rolls containing the maximum assessment rate and proposed assessment amounts as of the date of the Report for each Assessor Parcel Number within SMD Annexation L-101. SECTION 3: The Engineer's Report is hereby approved for the purposes required by Streets and Highways Code Section 22587, as submitted or amended by direction of this City Council, and is hereby ordered to be filed in the Office of the City Clerk as a permanent record and to remain open to public inspection. SECTION 4: The City Council hereby finds that the public interest, necessity, and convenience require the funding through assessments of parcels within SMD Annexation L-101 for the installation, servicing, and/or maintenance of the improvements, and the City Council declares its intention to: (a) annex those parcels into Zone B, and (b) to levy and collect assessments on parcels within SMD Annexation L-101. The City Council hereby declares and finds the land within the boundaries of SMD Annexation L-101 to be specially benefited by the improvements and said adjustments associated with Zone B. SECTION 5: The purpose of the proposed annexation is to include the SMD Annexation L-101 parcels into Street Lighting Zone B, which includes parcels located 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 location of the parcels proposed for annexation, and the maximum assessment rate and assessment amounts upon the assessable properties in Zone B. SECTION 6: The proposed improvements and services for SMD Annexation L-101 may include, but are not limited to, the installation, construction, operation, and maintenance of lighting improvements, together with all appurtenant facilities, equipment, and related infrastructure authorized under the 1972 Act. Such improvements may also include any work materials or services necessary or convenient for the proper operation, maintenance, or servicing thereof. SECTION 7: The City Council hereby determines that to provide the improvements described in Section 6 of this resolution, it is necessary to levy and collect assessments against the lots and/or parcels within SMD Annexation L-101 commencing in Fiscal Year 2026-27 and said assessments shall be outlined and described in the annexation and annual Engineer's Reports and imposed pursuant to the provisions of the 1972 Act and the California Constitution Article XIIID. Page 2 of 4 Packet Pg. 77 7.b SECTION 8: Pursuant to California Constitution Article XIIID, a property owner protest ballot proceeding is hereby called on the matter of confirming the proposed new assessments for SMD Annexation L-101. The ballots and notices so authorized shall be distributed by first-class mail to the property owners of record as of the last County equalized roll, and each property owner may return the ballot by mail or in person to the City Clerk no later than the conclusion of the public hearing for this matter. The provisions of the California Constitution Article XIIID require that the City conduct a public hearing not less than forty-five (45) days after mailing a notice of the proposed assessment to record owners of each parcel, which will have a special benefit conferred upon them and upon which an assessment will be imposed. SECTION 9: The City Council hereby authorizes and directs the City Clerk or their designee to prepare and mail the Notice of Public Hearing, and in the same or separate mailing, mail the property owner protest ballot(s) to the subject property owner regarding the proposed levy of assessments and the assessment range formula outlined in the Engineer's Report, for return receipt on or before the date and time of closing the public hearing described in this resolution. SECTION 10: The City Council hereby schedules a public hearing to consider approval of SMD Annexation L-101, the improvements, and the levy of assessments. Notice is hereby given that on Tuesday, February 24, 2026, at 6:00 p.m., the City Council will hold a Majority Protest Hearing for SMD Annexation L-101. The purpose of the hearing is to consider the levy and collection of assessments related thereto commencing in Fiscal Year 2026-27, or as soon thereafter as feasible. The public hearing will be held in the City Council Chambers, located at 23920 Valencia Boulevard, Santa Clarita, California. At this public hearing, all interested persons will be given the opportunity to speak and be heard regarding the proposed assessments. SECTION 11: The property owner protest ballot proceeding conducted for SMD Annexation L-101 shall constitute the property owner's approval or rejection of the annual levy of assessments and assessment range formula. The property owner may return the ballot by mail or in person to the City Clerk no later than the conclusion of the public hearing on Tuesday, February 24, 2026. After the close of the public hearing, pursuant to Section 4, Sub -Section 4 (e) of Article XIIID of the California Constitution, the City shall tabulate the ballots returned to determine if a majority protest exists. The ballots shall be weighted according to the proportional financial obligation of the affected property. 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. SECTION 12: This resolution shall take effect immediately. SECTION 13: 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. Page 3 of 4 Packet Pg. 78 7.b PASSED, APPROVED, AND ADOPTED this day of 2025. MAYOR ATTEST: CITY CLERK DATE: STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution No. 25- _was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the day of 2025, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: CITY CLERK Page 4 of 4 Packet Pg. 79 City of Santa Clarita Engineer's Report Santa Ciarita Landscaping and Lighting District Proposed Annexation of Territory to Street Lighting Zone B (SMD Annexation L-101) Establishment of Annual Assessments Commencing Fiscal Year 2025/2026 Intent Meeting: December 9, 2025 Public Fearing: February 24, 2026 CITY OF SANTA CLARITA 23920 VALENCIA BOULEVARD SANTA CLARITA, CA 91355 PREPARED BY WILLDAN FINANCIAL SERVICES OCTOBER 2025 W WILLDAN CITY OF SANTA CLARITA SANTA CLARITA LANDSCAPING AND LIGHTING DISTRICT SMD ANNEXATION L-101 ENGINEER'S REPORT CERTIFICATE The enclosed Engineer's Report (or Report), including the budget, diagram(s), and descriptions of improvements, parcels, and assessments, identifies the annexation of territory into Street Lighting Zone B ("Zone B") within the City of Santa Clarita Landscaping and Lighting District, to be designated as Streetlight Maintenance District Annexation L-101 (referred to as SMD Annexation L-101), with the calculation of assessment amounts based on Fiscal Year 2025/2026 cost estimates, subject to annual adjustments for inflation as described in the Report. SMD Annexation L-101 will annex parcels into Zone B, as it existed at the time of the Resolution of Intention for SMD Annexation L-101, with assessments to be levied and collected on the Los Angeles County Tax Rolls commencing in Fiscal Year 2026/2027. Reference is hereby made to the Los Angeles County Assessor's maps for a detailed description of the lines and dimensions of parcels within the Landscaping and Lighting District and SMD Annexation L-101. The undersigned respectfully submits the enclosed Report as directed by the City Council of the City of Santa Clarita. Dated this day of 12026. 0 Willdan Financial Services Assessment Engineer in Stacee Reynolds Tyrone Peter Principal Consultant PE # C81888 District Administration Services I HEREBY CERTIFY that the enclosed Engineer's Report, together with the Assessment Roll and Assessment Diagrams thereto attached was filed with me on the day of 12026. in Mary Cusick, City Clerk City of Santa Clarita Los Angeles County, California I HEREBY CERTIFY that the enclosed Engineer's Report, together with 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 12026. in Mary Cusick, City Clerk City of Santa Clarita Los Angeles County, California TABLE OF CONTENTS INTRODUCTION.........................................................................................................1 Overview............................................................................................................................... 1 BallotProceedings............................................................................................................... 2 REPORTCONTENT.............................................................................................................. 3 PART 1- PLANS AND SPECIFICATIONS................................................................. 5 Description of the Annexation Territory............................................................................. 5 Lighting Improvements Authorized by the 1972 Act ......................................................... 7 Streetlighting Improvements Applicable to Annexation Territory .................................... 7 PART 11- METHOD OF APPORTIONMENT OF ASSESSMENTS .............................. 9 Reason for the Assessment................................................................................................ 9 SpecialBenefit Analysis...................................................................................................... 9 GeneralBenefits..................................................................................................................10 Streetlighting Apportionment Methodology......................................................................10 AssessmentRates..............................................................................................................15 PART III - ESTIMATE OF COSTS............................................................................16 Fiscal Year 2025/2026 Street Lighting District Budget.....................................................17 PART IV - ANNEXATION DIAGRAMS....................................................................18 StreetLight Zone Diagram..................................................................................................19 SMD Annexation L-101 Annexation Diagrams..................................................................20 PART V - ASSESSMENT ROLL...............................................................................27 INTRODUCTION OVERVIEW The City of Santa Clarita (the "City"), under the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code (the "1972 Act") and the provisions of the California Constitution Article XIII D enacted by Proposition 218 ("Proposition 218"), annually levies and collects special assessments for the City's maintenance assessment districts designated as the Santa Clarita Landscaping and Lighting District (the "District") to provide and maintain various landscaping and lighting improvements throughout 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, T313, T4, T5, T6, T7, T8, T17, T20, T23, T23-1, T23-2, T23A, T2313, T29, T31-1, T31-1A, T31-2, T33, T44, T46, T47, T48, T51, T52, T62, T65, T65A, T6513, T67, T68, T69, T71, T76 and T77. The City Council of the City of Santa Clarita, being the governing body of the City with jurisdictional authority over the Santa Clarita Landscaping and Lighting District, may pursuant to Chapter 2, Article 2 of the 1972 Act, annex territory and levy annual assessments for the maintenance, operation, and administration of the District, and Section 22608 of the 1972 Act further states in part "In annexation proceedings, the resolutions, report, notices of hearing, and right of majority protest shall be limited to the territory proposed to be annexed...". In addition, the 1972 Act provides for the levy of annual assessments after annexation into an assessment district for the continued maintenance and servicing of the improvements. The 1972 Act further allows various areas to be annexed into an existing district and or zone of benefit ("Zone"), when the territory in the annexation receives substantially the same proportional special benefits from the improvements. The costs associated with the installation, maintenance, and servicing of the improvements may be assessed to those properties, which receive a special benefit from the installation, maintenance, and servicing of such improvements. As required pursuant to Chapter 1, Article 4 of the 1972 Act, this Report shall serve as the detailed engineer's report specifically for the annexation of territory to specified Zones within the Santa Clarita Landscaping and Lighting District (specifically Street Lighting Zone B). This Report specifically addresses the annexation of approximately eighty-two acres (81.914) of territory within the City of Santa Clarita consisting of fourteen (14) conditioned properties (non- residential/residential) to be designated and referred to as: Santa Clarita Landscaping and Lighting District, Streetlight Maintenance District Annexation L-101 (hereafter referred to as "SMD Annexation L-101"), and the establishment of the maximum annual assessments related thereto, to be levied and collected upon properties within the annexation territory commencing in Fiscal Year 2026/2027 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 SMD Annexation L-101 are more specifically described in "Part I - Plans and Specifications" of this Report. SMD Annexation L-101 City of Santa Clarita Final Engineer's Report Fiscal Year 2025/2026 Landscaping and Lighting District Page 1 1 "VVILLDAN For Fiscal Year 2025/2026, the City Council of the City of Santa Clarita proposes to annex various parcels referenced to as SMD Annexation L-101 into Street Lighting Zone 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 SMD Annexation L-101 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 SMD Annexation L-101 to Street Lighting Zone B of the District pursuant to the 1972 Act and Proposition 218. Diagrams identifying the territory and location of the parcels being annexed into Street Lighting Zone B (SMD Annexation L-101) are provided in "Part IV - Annexation Diagrams" of this Report. Annually, the City establishes the assessments for each Zone within the District 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 SMD Annexation L-101, and include all expenditures, deficits, surpluses, revenues, and reserves. Each parcel is assessed proportionately for only those improvements provided and for which the parcel receives special benefits. The word "parcel," for the purposes of this Report, refers to an individual property assigned its own Assessor's Parcel Number (APN) by the Los Angeles County Assessor's Office. The Los Angeles County Auditor/Controller uses Assessor's Parcel Numbers and specific Fund Numbers to identify properties to be assessed on the tax roll for the District assessments. If any section, subsection, sentence, clause, phrase, portion, zone, or subzone of this Engineer's 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 Engineer's 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 Pursuant to the provisions of Article XIII D, Section 4 of the California Constitution (Proposition 218) and the Landscaping and Lighting Act of 1972 (the "1972 Act"), the City shall conduct a property owner protest ballot proceeding ("Ballot Proceeding") in connection with the proposed levy of new or increased assessments described in this Report. In compliance with Proposition 218, this Engineer's Report includes a detailed description of the improvements to be funded, clearly identifies the Zones affected, and provides a comprehensive analysis of the special benefits received by the assessed parcels. The Report further distinguishes between general and special benefits and outlines the methodology used to proportionally allocate assessment amounts to each parcel based on those special benefits. In conjunction with the Ballot Proceeding, the City Council will hold a duly noticed public hearing to consider oral testimony, written comments, and formal protests submitted by property owners regarding the annexation of the parcels within SMD Annexation L-101 and the establishment of the proposed new assessments related thereto. SMD Annexation L-101 City of Santa Clarita Final Engineer's Report Fiscal Year 2025/2026 Landscaping and Lighting District Page 2 At the conclusion of the public hearing, all protest ballots received from property owners will be opened and tabulated. A majority protest shall be deemed to exist if the ballots submitted in opposition to the proposed annexation exceed those submitted in support, with each ballot weighted according to the proportional financial obligation of the affected parcel, as required by Proposition 218. Upon completion of the ballot tabulation, the City Council will confirm the results of the proceeding. If a majority protest is determined to exist, all further actions to implement the proposed new assessments (including the inflationary adjustment) will be abandoned. If no majority protest is found and the City Council determines that the proposed assessment(s) and the assessment range formula conform to the requirements of Proposition 218 (Article XIII D, Section 4 of the California Constitution), the Council may adopt this Report (as submitted or amended), order the annexation of SMD Annexation L-101 to Street Lighting District Zone B, approve the associated assessment diagrams, and confirm the assessments. The approved assessments shall then be incorporated into the Engineer's Annual Report for Fiscal Year 2026/2027 and submitted to the Los Angeles County Auditor -Controller for inclusion on the property tax roll for each affected parcel. REPORT CONTENT This Report consists of five (5) parts: Part I — Plans and Specifications This section provides an overall description of the District, the Zone(s) therein and the improvements to be provided, including those improvements associated with SMD Annexation L-101 addressed within this Report. The proposed assessments as outlined in this Report are based on the lighting improvements and appurtenant facilities that provide a special benefit to the properties within Zone B including operational expenses authorized pursuant to the 1972 Act. The plans and specifications contained in this section of the Report describe the overall nature and extent of the improvements. In conjunction with these descriptions of the improvements a visual depiction of the improvement areas is provided in the Zone Diagrams contained in Part IV of this Report. Part II — Method of Apportionment of Assessments This section includes a discussion of the general and special benefits associated with the various improvements to be provided within SMD Annexation L-101 (Benefit Analysis), which includes a discussion of the proportional costs of the special benefits, and a separation of costs considered to be of general benefit (and therefore not assessed). This section of the Report also outlines the method of calculating each property's proportional special benefit necessary to calculate the property's annual assessment. Part III — Estimate of Costs An estimate of the annual costs to operate, maintain, and service the lighting improvements and appurtenant facilities within SMD Annexation L-101. The budget includes an estimate of the maintenance costs and incidental expenses including, but not limited to labor, materials, utilities, equipment, and administration expenses as well as the collection of other appropriate funding authorized by the 1972 Act and deemed necessary to fully support the improvements. SMD Annexation L-101 City of Santa Clarita Final Engineer's Report Fiscal Year 2025/2026 Landscaping and Lighting District Page 3 Part IV —Annexation Diagrams This section of the Report contains diagrams showing the boundaries of SMD Annexation L-101 for Fiscal Year 2025/2026 which incorporate the parcels determined to receive special benefits from the improvements to be provided in Zone B. Parcel identification, the lines and dimensions of each lot, parcel and subdivision of land within SMD Annexation L-101, as shown on these diagrams and listed on the Assessment Roll, are inclusive of such parcels shown on the Los Angeles County Assessor's Parcel Maps and shall include any subsequent lot line adjustments or parcel changes therein. Reference is hereby made to the Los Angeles County Assessor's Parcel Maps for a detailed description of the lines and dimensions of each lot and parcel of land within SMD Annexation L-101. Part V — Assessment Roll The Assessment Roll contains a listing of all Assessor Parcel Numbers of the properties within SMD Annexation L-101 and each parcel's corresponding "Balloted Maximum Assessment' commencing in Fiscal Year 2025/2026. The proposed assessment amounts balloted for each parcel, which may be levied and collected commencing in Fiscal Year 2026/2027, are based on the parcel's calculated proportional special benefit as outlined in the Method of Apportionment (Part II of this Report) and the maximum assessment rate established by the estimated budget (Part III of this Report). SMD Annexation L-101 City of Santa Clarita Final Engineer's Report Fiscal Year 2025/2026 Landscaping and Lighting District Page 4 YY VVILLDAN PART / - PLANS AND SPECIFICATIONS DESCRIPTION OF THE ANNEXATION TERRITORY SMD Annexation L-101 encompasses approximately eighty-two acres (81.914) of territory within the City of Santa Clarita. The annexation area consists of fourteen (14) planned developments, each tied to a specific Master Case entitlement. Details for each Master Case are provided below. All book and page references and associated Assessor's Parcels identified in the Master Case files are included in this annexation. Certain parcels currently located within Street Lighting Zone A are proposed to be transferred to Zone B, while all other identified parcels, which are not presently within a lighting district, will be annexed directly into Zone B as part of this action. The parcels proposed for transfer from Street Lighting Zone A to Zone B include the following Assessor's Parcel Numbers (APNs): 2803-010- 033; 2831-007-001; 2831-012-041; 2831-012-022; 2831-012-023; 2831-012-024; 2831-012-027; 2836-011-018; 2844-001-032; 2844-001-034; 2844-001-046; 2849-024-019; and 2849-024-029. ➢ Master Case No. 18-235 (Sierra West Assisted Living & Memory Care) which is located on the west side of Sierra Highway, south of Newhall Avenue. This master case development includes the following Assessor's Parcel: Book 2827, Page 005, Parcel 048. At build -out, this development project will include an eighty-three (83) unit senior living facility, with new lighting to be installed. ➢ Master Case No. 25-008 (River Walk Mixed Use Project) which is located on Soledad Canyon Road, east of Sierra Highway. This master case development includes the following Assessor's Parcels: Book 2844, Page 001, Parcels 032, 033, 034, 046, 068, and 072. At build -out, this development project will include one hundred forty-four (144) townhome units and one (1) 8,500 square -foot commercial building with ten (10) affordable residential units on the second story. Street lighting will be installed as part of this project. ➢ Master Case No. 21-165 (Atwood Residence) which is located on the west side of Atwood Boulevard, east of De Wolfe Road. This master case development includes the following Assessor's Parcel: Book 2829, Page 021, Parcel 003. At build -out, this development project will include one (1) single-family residential unit. ➢ Master Case No. 21-205 (Riverview Community) which is located south of Soledad Canyon Road. This master case development includes the following Assessor's Parcel: Book 2836, Page 011, Parcel 018. At build -out, this development project will include three hundred eighteen (318) residential units, comprised of one hundred twenty-two (122) detached single- family condominiums and one hundred ninety-six (196) attached townhomes; and one (1) 127,000 square -foot light manufacturing building. Street lighting will be installed as part of this project. ➢ Master Case No. 21-238 (Garden Terrace Restaurant) which is located on the south side of Lyons Avenue and the west side of Main Street. This master case development includes the following Assessor's Parcel: Book 2831, Page 007, Parcel 001. At build -out, this development project will contain a restaurant. ➢ Master Case No. 21-239 (Walnut Street Commercial Expansion) which is located on the east side of Walnut Street, south of 8th Street and north of Market Street. This master case development includes the following Assessor's Parcel: Book 2831, Page 012, Parcel 041. SMD Annexation L-101 City of Santa Clarita Final Engineer's Report Fiscal Year 2025/2026 Landscaping and Lighting District Page 5 This development project will involve the expansion of an existing commercial building to include a parking area and a live/work unit with one (1) residential unit on the second floor. Master Case No. 22-004 (Starbucks on McBean Parkway) which is located on the west side of McBean Parkway, south of Magic Mountain Parkway. This master case development includes the following Assessor's Parcel: Book 2861, Page 062, Parcel 049. At build -out, this development project will include a Starbucks with a drive-thru. Master Case No. 22-026 (Pine Street Commercial) which is located on the west side of Pine Street, north of 2nd Street and south of 31d Street. This master case development includes the following Assessor's Parcel: Book 2831, Page 023, Parcel 045. At build -out, this development project will include a 5,932 square foot, single -story commercial building, with new lighting to be installed. Master Case No. 22-034 (Jack in the Box Restaurant Remodel) which is located on the corner of Crossglade Avenue and Soledad Canyon Road. This master case development includes the following Assessor's Parcel: Book 2803, Page 010, Parcel 033. This development project will involve the expansion and remodel of an existing Jack in the Box restaurant. Master Case No. 22-244 (McDonald's on Newhall Avenue) which is located on the east side of Newhall Avenue. This master case development includes the following Assessor's Parcels: Book 2833, Page 014, Parcels 043 and 044. At build -out, this development project will include a McDonald's restaurant, with new lighting to be installed. Master Case No. 23-027 (SUSD Facilities) which is located on the west side of Ruether Avenue, south of Golden Triangle Road. This master case development includes the following Assessor's Parcel: Book 2836, Page 017, Parcel 903. At build -out, this development project will contain school district parking and a new building. Master Case No. 24-117 (Car Wash on Carl Boyer Drive) which is located north of Center Pointe Parkway and south of Golden Triangle Road. This master case development includes the following Assessor's Parcel: Book 2836, Page 016, Parcel 044. At build -out, this development project will contain a car wash. Master Case No. 24-212 (Car Wash on Valley Center Drive) which is located on the west side of Valley Center Drive north of Soledad Canyon Road. This master case development includes the following Assessor's Parcels: Book 2849, Page 024, Parcels 019 and 029. At build -out, this development project will include an automated car wash. Master Case No. 25-089 (Hartwell Mixed Use Project) which is located at the three-way corner of Main Street, Market Street and Railroad Avenue. This master case development includes the following Assessor's Parcels: Book 2831, Page 012, Parcels 022, 023, 024 and 027. At build -out, this development will include ninety-eight (98) apartment units, one (1) 6,300 square -foot commercial building and one hundred fifty-seven (157) parking spaces. SMD Annexation L-101 City of Santa Clarita Final Engineer's Report Fiscal Year 2025/2026 Landscaping and Lighting District Page 6 LIGHTING IMPROVEMENTS AUTHORIZED BY THE 1972 ACT As may be applicable to the District and specifically the Report regarding SMD Annexation L-101 and streetlighting, the improvements to be funded by SMD Annexation L-101 include authorized improvements to be funded by the 1972 Act, including one or any combination of the following: ➢ The installation or construction of public lighting facilities, including, but not limited to, traffic signals. ➢ The maintenance and/or servicing of any public lighting facilities. ➢ The acquisition of any existing lighting improvement otherwise authorized pursuant to Section 22525 of the Landscaping and Lighting Act of 1972. ➢ Incidental expenses associated with the lighting improvements include, but are not limited to • The costs 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 proceedings. • 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 the repair, removal, or replacement of all or any part of any 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, including 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 2023, Edison has transferred ownership of 17,791 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. SMD Annexation L-101 City of Santa Clarita Final Engineer's Report Fiscal Year 2025/2026 Landscaping and Lighting District Page 7 ➢ 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 the 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. The current maximum annual installment payment is $858,544, with all bonds originally scheduled for retirement in Fiscal Year 2046/2047. To reduce the amount of debt service, or total interest payments, tied to bond financing, the City paid down $4,015,000 in September 2025. Additional redemptions are expected to be made in 2027 and 2028. This action will save property owners approximately $6.2 million in interest. 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 2025/2026. Plans, specifications and estimated costs specific to the improvements within the Street Lighting Zones are voluminous and are not bound in this report but by this reference are incorporated and made a part of this report. This information, as well as the location of the streetlights included on lighting inventory maps, is on file at the City where they are available for public inspection. SMD Annexation L-101 City of Santa Clarita Final Engineer's Report Fiscal Year 2025/2026 Landscaping and Lighting District Page 8 PART // - METHOD OFAPPORT/ONMENT OFASSESSMENTS 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 funding certain public improvements and services which include the acquisition, construction, maintenance and servicing of streetlights, traffic signals and landscaping facilities. Section 22573 of the 1972 Act requires that assessments be levied according to benefit rather than according to assessed value. This section states: "The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements." Section 22574 of 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 differing degrees of benefit from the improvements." 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 the streetlighting improvements, as previously defined herein in "Part I — Plans and Specifications" of this Report. SPECIAL BENEFIT ANALYSIS In determining the proportionate special benefit for each identified parcel, the analysis considered both the parcel's proximity to the public improvements described in "Part I — Plans and Specifications" of this Report. Because of their close proximity, these parcels are shown to receive a direct and particular advantage from the improvements, a distinct special benefit that exceeds general benefits provided to other parcels, real property in general, or the public at large. Streetlighting Improvement Benefits Most of the streetlighting improvements were conditions of approval for the creation or development of undeveloped parcels of land. To obtain development approval, the City required the original developer to install and guarantee the maintenance of streetlighting and appurtenant facilities to serve the parcels. The proper maintenance of these improvements provides a distinct special benefit to parcels within the Street Lighting Zones of the District. Streetlighting in close proximity to assessed parcels provides a special benefit by reducing property -related crimes (especially vandalism) and enhancing safety for pedestrians and motorists, particularly during nighttime hours, while supporting tenant satisfaction and/or commercial viability. SMD Annexation L-101 City of Santa Clarita Final Engineer's Report Fiscal Year 2025/2026 Landscaping and Lighting District Page 9 Streetlights are an integral component of the street system, similar to curbs, gutters, pavement, signage, and striping. One of their principal purposes is to provide a nighttime environment conducive to visibility, traffic safety, and efficient traffic movement. One hundred percent (100%) of the illumination from the lights is directed to the street, ninety percent (90%) on the street side of the curb and ten percent (10%) behind the curb. Properly spaced and directed lighting allows motorists to see roadway details more distinctly and respond quickly to conditions. The system of streets within the District exists to provide access to each parcel, and streetlights contribute to a safer environment for property owners and residents. The City has also determined that streetlights are an integral part of the community's overall quality of life. While adjacency to specific improvements may enhance a particular parcel's access, all parcels within the Street Lighting Zones receive an equivalent special benefit. Accordingly, the acquisition, installation, operation, and maintenance of streetlights provide a direct and express benefit to the parcels within the District. GENERAL BENEFITS General Benefit within Lighting Zones In addition to the special benefits received by the parcels within Street Lighting Zone B, there are incidental general benefits conferred by streetlight improvements. It is estimated that the general benefit portion of the total benefit received from the lighting improvements is fourteen and one-half percent (14.5%). This fixed percentage, uniformly assigned to all existing parcels within the Street Lighting Zones, is based on established industry standard engineering judgement and supported by precedent within the assessment engineering practice, which provides for a nominal allowance recognizing incidental public use of lighting systems (i.e., by motorists, pedestrians and public safety users). Nonetheless, the City will ensure that no property is assessed in excess of the reasonable cost of the proportional special benefit conferred on that property, in accordance with the requirements of Proposition 218. The total benefits for lighting are thus a combination of the special benefits to the parcels within the District/Zone and the general benefits to the public at large. The portion of the total streetlighting maintenance costs which are associated with general benefit will not be assessed to the parcels in the District/Zone 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 To assess benefits equitably, it is necessary to calculate each property's relative share of the special benefits conferred by the funded improvements and service. The Equivalent Benefit Unit (EBU) method of assessment apportionment is utilized in this District and establishes a basic unit (base value) of benefit and then calculates the benefit derived by each assessed parcel as a multiple (or a fraction) of that basic unit. The EBU method of apportioning special benefits is typically seen as the most appropriate and equitable assessment methodology for special districts formed under the 1972 Act, as the benefit to each parcel from the improvements are apportioned as a function of comparable property characteristics which may include, but is not limited to, land use and property size. SMD Annexation L-101 City of Santa Clarita Final Engineer's Report Fiscal Year 2025/2026 Landscaping and Lighting District Page 10 For the purposes of this Engineer's Report, EBU is the quantum of benefit derived from the lighting improvements by a single-family residential parcel. The single-family residential parcel has been selected as the basic unit for calculation of assessments since it represents over sixty percent (60%) of the parcels in the District. Thus, the "benchmark" property (the single-family residential home or condominium) derives one EBU of benefit and is assigned 1.00 Equivalent Benefit Unit. In addition, the existing District includes certain properties that may not have streetlights on their block, but which do receive a special benefit from the proximity of lights in the area. Therefore, a weighted value of 0.50 was given to "People Use" while "Intensity" and "Security Benefit' were each rated at 0.25 to form the basic unit (1.00 EBU). These three lighting benefit categories are further described below. ➢ People Use - Represents the degree of benefit derived from lighting based on the presence and activity of people who live on, work at, or otherwise use a property. It accounts for nighttime pedestrian and vehicular activity generated by a parcel's occupants and visitors. Higher population or activity levels (such as multi -family or commercial uses) correspond to greater People Use benefit. ➢ Intensity - Reflects the extent and concentration of lighting improvements within or adjacent to an area. It measures the relative level of illumination or density of streetlights serving a parcel, considering factors such as spacing, light output, and proximity to fixtures. Parcels near intersections or along arterial streets typically experience higher Intensity benefits than those in lower -light residential areas. ➢ Security Benefit - Measures the increase in safety and property protection provided by street lighting. This includes deterrence of vandalism and crime, enhanced visibility for pedestrians and motorists, and improved emergency response conditions. Parcels receive a higher Security Benefit when lighting directly enhances the safety of property, residents, or business operations. For the remainder of the residential category, which is comprised of multiple rental type properties, the value for Intensity would remain at 0.25, but People Use and Security Benefit increase in proportion to the number of family dwelling units on the parcel. For example, a duplex is assigned 0.25 for Intensity, 1.00 for People Use and 0.50 for Security Benefit for a total of 1.75 EBUs. The owner of such property would therefore pay 1.75 times as much for lighting as the owner of a single-family unit. In consideration of the distance some units may be from the lighted roadway, Security Benefits in the residential category would not be increased beyond a value of 1.00. Thus, a five -unit apartment would be assigned 0.25 for Intensity, 2.50 for People Use and 1.00 for Security Benefits for a total of 3.75 EBUs. As the number of apartment units on the parcel increases, the service charge units assigned for people would follow a declining scale. SMD Annexation L-101 City of Santa Clarita Final Engineer's Report Fiscal Year 2025/2026 Landscaping and Lighting District Page 11 1I "W I LLDAN Table 1 summarizes the Residential EBU Calculation. SF€2tCando SFiR and Condos 0 F4-) 0 2r 0 2� 1.00 per parcel APT2 Aipartrryerlts(2-4unks) 112 x units + 0.25 x unks + 0.25 2 1.00 + 0,50 + 0.25 = 1.75 per parcel 3 1.50 + 0.75 + 0,25 = 250 per parcel 4 2.00 1.00 + 025 325 per parcel APT5 Apart Units (5-20 units) 112 x units + 1.00 + 0.25 5 250 + 1,00 + 0,25 = 3.75 per parcel 20 1000 100 + n 25 = 1125 per parcel' ,W' d 21, Apa rtnw nts (21-50 units) 113 x ( unit s-20) + the total EBU for a 2D-unit spar Mwnt 1000 1 1125 = 21 25 pef parcel A Apartments i 51.100 units) 114 x (units-50) + the total EBU for a 50-unit apartment 100 12 �'ki 21 25 = 33.75 per parcel APT 101 Apartments 11OO+ units) 115 x (units-100) + the total EBU for a 140-unit aparhmnt 101 0.20 + 33 75 = 33,95 per parcel 175 15.00 + 33.75 = 48.75 per parcel 200 2000. + 33.75 = 53.75 per parcel Non -Residential Parcels The non-residential lots or parcels are separated into 38 land use categories as determined by the County Assessor. EBUs are assigned on the basis of average benefits for different groups of land uses, Groups A-K. A minimum of three (3.00) EBUs would be assessed for each lot or parcel to be compatible with Group D, which contains many of the smaller business categories. Properties within the ten (10) land use categories in Group K varied widely from the norm; therefore, these lots or parcels are evaluated on an individual basis. Each parcel or lot within the Group K land use categories is identified on the official Street Lighting District maps, and each streetlight or portion thereof in the immediate proximity of the lots or parcels providing a benefit is assigned a corresponding number of units as identified below. The total number of EBUs determined for Group K-1, K-2 and/or K-3 is distributed among the lots or parcels in that category in proportion to the lot or parcel area as shown in Table 2, under the Group K heading. Since benefits have been related to property use and property users, no charge is assessed on vacant parcels within the District. SMD Annexation L-101 City of Santa Clarita Final Engineer's Report Fiscal Year 2025/2026 Landscaping and Lighting District Page 12 1I "W I LLDAN Table 2 summarizes the Non -Residential EBU calculation. NON-RESIDENT11ALcLAssiFir-A7noNs People Use Security Intensity Totail EBLIs GRP-A Group A '. .: 7 00 per parcel Animal Kennels, Nursr .. . Group 8 Industrial parking lots t hunches• Private Schoois, 2 60 Petroleum and Gas. thttrty - GrouP r 31 Parking L 2 50 per pane. r'rofessional bujiwig. baux av+uy 3 � aa+r GRP-D Group 0 Service Shop, Lumber Yard, Golf Course, Race 1.00 t 00 - 100 per parcel track/stable, Camp, Home for theme GroupE Store, Store wr office or residence, Service Scat,:;,: & Lodge Hall _Club GRP-1F Group F Rooming House (same as 6 un,r GRP-t Group, G Restaurant. Theater u ; 00 + I o) oo u GRP-H Group H Light Manufacturing, Food Processing Plant, 200 200 + t 00 G 00 per parcel Warehousing, StorageFacilities GRP-1 Group I Auto Recreational E i merit Sales & Service 2,00 + 2,00 + 2,00 6 00 eer parcel GRP-J Group J Market, Bowling Alley, Skating Rink, Department 4.00 + 2,00 + 2.00 = 8 00 per parcel Store HoteUMotel• Mobile Home Park Group K All parcels in Group K are assessed a minimum of 3 EBU's GroupK-1 300 + i,00 + 1,25 = 5,25 GRP-K1A ©pen Storage 0.004973 per 100 SgFt of lot GRP-K16 Mineral Processing___________ __ 0.005615 per 100 SQFt of lot — Group K-2 4.00 + 1,00 1.25 6,25 GRP-K2A Primate College/University 0.001736 per 100 SgFt of lot GRP-K2B wholesale, Manufacturing Outlets 0.059858 per 100 SgFt of lot GRP-K2C Athletic and Amusement Facilities 0.027431 per 100 SgFt of lot GRP-K2D Heavy Manufacturing 0.006382 per 100 SgFt of lot GRP-f(E _ HoVAals @•t7.Z:L per 100 SclF of lot_ GroupK-3 400 + 1.00 + 1,50 = 6,50 Motion Picture, Radio, TV 0,010938 per 100 SgFt of lot Business Center, Neighbor 0,014449 per 100 SgFt of lot ' Regional Stir "o •a 0.021812 per 100 S Ft of lot. Vacant 000 + 000 + 000 0.00 oer parcel For non-residential parcels, the "People Use," "Intensity," and "Security Benefit" factors have been applied in proportion to the type and level of activity associated with each land use category, consistent with standard assessment engineering practice and historical district methodology. Collectively, these factors represent the manner in which non-residential properties receive and derive special benefit from the operation and maintenance of the street lighting system. ➢ People Use - Reflects the degree of benefit derived from nighttime human activity generated by a property's occupants, employees, and customers. Commercial and institutional land uses such as retail centers, restaurants, theaters, and hospitals exhibit higher People Use values due to extended operating hours and increased evening activity. Conversely, industrial and warehouse uses, which typically have limited nighttime presence, receive lower People Use values. ➢ Intensity - Measures the level of lighting infrastructure and illumination typically provided in proximity to a land use. Properties located along major arterial roadways or within high -traffic commercial corridors are assigned higher Intensity values because these areas are illuminated by fixtures with greater lumen output, designed to provide broader coverage and higher visibility standards consistent with roadway classification. In contrast, properties within interior streets or local service areas, where fixtures operate at lower lumen levels appropriate SMD Annexation L-101 City of Santa Clarita Final Engineer's Report Fiscal Year 2025/2026 Landscaping and Lighting District Page 13 for residential environments, are assigned proportionately lower Intensity values. This differentiation ensures that the level of benefit corresponds to the actual brightness, coverage, and frequency of street lighting provided near each parcel. ➢ Security Benefit - Represents the degree to which street lighting contributes to the protection of property, assets, and the public within and adjacent to a parcel. Non-residential properties that maintain significant on -site assets, equipment, or inventory, such as manufacturing facilities, storage yards, or vehicle lots, receive elevated Security Benefit values because higher -lumen street lighting in commercial and industrial corridors enhances visibility and deters vandalism, theft, and other security risks. Office and professional uses, which derive moderate security enhancement from street lighting at lower lumen levels, receive proportionately lower values. The combined weighting of these three factors produces the EBU assignment that proportionally reflects each non-residential parcel's relative special benefit from the street lighting improvements. This methodology ensures that the total benefit assigned to each non-residential parcel is reasonably related to its use characteristics, lighting demand, and security needs, thereby maintaining consistency with Proposition 218 requirements for proportional special benefit allocation. Exemptions Some types of properties generally do not receive a direct and particular special benefit from the streetlighting improvements and services provided within the District, and therefore are exempt from the assessment. These include public streets, avenues, lanes, roads, drives, courts, alleys, public easements or rights -of -way, and District improvement areas, many of which are not assigned Assessor's Parcel Numbers. Also exempt 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 small parcels vacated by the City, parcels with notable development restrictions (the City or Assessment Engineers have determined that the parcel cannot be developed or developed independently from any contiguous parcel with the same ownership). Public Park Exemption Park facilities are designed to attract people for recreation and community use; however, they are generally visited during daylight hours and do not generate nighttime activity that requires illumination. Streetlighting within the District is intended to enhance visibility, safety, and security for pedestrians, motorists, and properties with nighttime occupancy or access. Since parks within the City of Santa Clarita typically close at dusk and are not intended for nighttime use, they do not derive a measurable special benefit from streetlighting improvements. While certain City parks may include designated facilities with internal lighting for organized evening activities, such lighting is independent of the District's streetlighting system and serves recreational rather than roadway or parcel -related purposes. These limited -use facilities do not alter the exemption status of park parcels within the District. Streets adjacent to park boundaries may be illuminated for general public safety and circulation; however, those benefits are considered general in nature and accrue to the public at large rather than to the park parcels themselves. Consistent with Proposition 218 and established assessment engineering practice, parcels that do not receive a direct and particular advantage, such as improved nighttime safety, access, or security for property -related use, are not assessed for streetlighting services. SMD Annexation L-101 City of Santa Clarita Final Engineer's Report Fiscal Year 2025/2026 Landscaping and Lighting District Page 14 ASSESSMENT RATES The Street Lighting Zone B Maximum Assessment Rate established for Fiscal Year 2025/2026 and applicable to SMD Annexation L-101 is provided in the following table. Zones IFY 2025/2026 Maximum Assessment Street Lighting Zone A $12.38 / EBU Street Lighting Zone B $105.43 / EBU Assessment Range Formula (Consumer Price Index Adjustment) 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 area, as published by the U.S. Department of Labor, Bureau of Labor Statistics. Specifically, the adjustment is based on the CPI figure released in March or April of each year, reflecting year -over -year inflation within the regional economy where the District/Zone is located. The maximum assessments described in this Report for Street Lighting Zone B to be presented to the property owners of record within SMD Annexation L-101 as part of the Ballot Proceeding, are based on the current (Fiscal Year 2025/2026) maximum assessment rate of $105.43 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 2026/2027 as part of the District's annual assessment process, and the assessment rate and assessment amounts for parcels within Street Lighting Zone B, including those within SMD Annexation L-101 as described herein, may be adjusted accordingly for Fiscal Year 2026/2027. SMD Annexation L-101 City of Santa Clarita Final Engineer's Report Fiscal Year 2025/2026 Landscaping and Lighting District Page 15 PART /// - EST/MATE OF COSTS Provided below is a budget estimate of the proportional assessment obligation for SMD Annexation L-101 if included in the District for Fiscal Year 2025/2026. 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. TOTAL LOTS OR PARCELS: 24 ASSESSED LOTS OR PARCELS: 24 Non -Residential (GRP-D) 2 6.000 Non -Residential (GRP-E) 2 8.000 Non -Residential (GRP-G) 5 25.000 Non -Residential (GRP-1) 3 18.000 Non -Residential (GRP-K3B) 4 3.366 Residential (SFR) 1 1.000 Residential and Non -Residential (RES & GRP-H) 7 388.431 Maximum Funds $47,422.04 Available Carryover N/A SMD Annexation L-101 City of Santa Clarita Final Engineer's Report Fiscal Year 2025/2026 Landscaping and Lighting District Page 16 FISCAL YEAR 2025/2026 STREET LIGHTING DISTRICT BUDGET The annual budget for each Zone is composed of the major spending categories authorized under the Landscaping and Lighting Act of 1972, including personnel, administrative support, operations and maintenance, electric utility costs, contractual services, streetlight replacement, and general administration. These categories represent the recurring and incidental expenses necessary to operate, maintain, and service the streetlighting system within the District. The following table presents the detailed budget for Street Lighting Zones A and B for Fiscal Year 2025/2026. NAN=1R1111]*? Assessment - Levy A $440,730 Assessment - Levy B 2,622,173 Interest 6,782 Property Damage Payments 375,000 Total Revenues $3,444,685 EXPENDITURES Personnel Department $402,836 Other Administrative 182,090 Operations & Maintenance Electric Utilities - Street Lights 1,563,924 Contractual Services 116,468 Streetlight Replacement 250,000 General Administration 584,504 Subtotal Operations & Maintenance $3,099,822 Transfers Transfers In From Ad -Valorem $(4,462,259) Transfers Out to Debt Service Fund 4,807,122 Total Expenditures 3,444,685 SURPLUS (DEFICIT) $0 Fund Analysis Estimated Beginning Fund Balance (7/01/25) $2,052,462 Estimated Revenues 3,444,685 Estimated Expenditures (3,444,685) Estimated Ending Fund Balance (6/30/26) 2,052,462 Operating Reserves (1,549,911) Reserves for capital replacement (6/30/26) 502,551 Note: Budgeted Assessment amounts shown above for Zone A and Zone B may be slightly different from the Assessment Roll due to rounding of assessment to the nearest penny. SMD Annexation L-101 City of Santa Clarita Final Engineer's Report Fiscal Year 2025/2026 Landscaping and Lighting District Page 17 PART /V-ANNEXAT/ON DIAGRAMS Included herein is a diagram of the Street Lighting Zones within the Landscape and Lighting District. Detailed District boundary diagrams will be available for inspection at the office of the City Clerk during normal business hours and, by reference, are made part of this report. The Annexation Diagrams (Assessment Diagrams) for SMD Annexation L-101 relating to Street Lighting Zone B as described in this Report are provided on the following pages. The parcels that comprise SMD Annexation L-101 consist of all lots, parcels, and subdivisions of land listed on the Assessment Roll contained herein as Part V. The lines and dimensions of which are shown on the Los Angeles County Assessor's parcel maps for the year this Report was prepared and are incorporated by reference herein and made part of this Report. SMD Annexation L-101 City of Santa Clarita Final Engineer's Report Fiscal Year 2025/2026 Landscaping and Lighting District Page 18 P, V Q 0 W Z 0 N H V_ J H W W w H U) c 0) c w 0 J r O r J 0 I� X C C ►1 m c LL U o(0 N J N C Lf O N O N X N C � C Q } 0 U .Ln (n LL a n 3 _l w Ci Q CD O O dt N N CV N �t C7 N CD r r r r r N r r C7 d d C7 C7 CD d d d d d d d o a 4 d " m m m M M M m A m A m N N m co o0 a) m m m m m m m m uj m N 2 0) a 4 W U z W uj W cn cr Lfa cD 1` CF) d N r7 LL IX r r r r r r r N N N N N W W X M a g 4 E z J w v d 00 d (73 M C] LD �t N N M o 0 o C:, o m o 0 0 o CD o o O O O c7 o C7 O O o O � a (v M a) 6 (O M v 4 4 4 4 cD m 't 't M M d "t cr �t ct �t N 00 00 O0 w co 00 co 00 w w co co 0) m LU CV N CV CJ N N N N N N N N fJi 7 e[ z 111 U z w Ir W CV CO It LO (D n 00 C) COLL 4 � z Vn CJ .a I I C LL U o(0 N J N C Lf O N O N X N C N C Q } 0 U (n LL It-f N O N Q N � � cB O c 0) c w m iL U 0) �6 c UI 0) � J C -6 (6 cn m O O) C U 0 U C J c 0) c w m iL U 0) �6 c UI 0) � J C -6 (6 cn m O O) C U 0 U C J 0) c W U �_ 0) �6 c UI 0) � J C -6 (6 Cf) m o 0) c U 0 U c m J o� N O J N C Ln O N O N x a c � c } 0 U LL It-f Ln O N C U� N N C C LU m c LL U o� N J N C Lf O N X N N C � Q_ 0 U Ln (n LL _. A a N N C O C LU m c LL U o� N O J N C Lf O N �o X N N C � c Q } 0 U Ln (n LL W I LLDAN PART V ASSESSMENT ROLL The Assessment Roll incorporates each parcel identified within SMD Annexation L-101 and the balloted maximum assessment amount proposed based on the Fiscal Year 2025/2026 maximum assessment rates. Each parcel listed on the Assessment Roll is currently shown and illustrated on the County Assessor's Roll and the County Assessor's Parcel Number Maps (APN maps). These records are, by reference, made part of this Report and shall govern 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 2026/2027. 2803-010-033 GRP-G 5.000 $105.43 $527.15 2827-005-048 GRP-D 3.000 105.43 316.29 2829-021-003 RES 1.000 105.43 105.43 2831-007-001 GRP-G 5.000 105.43 527.15 2831-012-041 GRP-E 4.000 105.43 421.72 2831-023-045 GRP-E 4.000 105.43 421.72 2833-014-043 GRP-G 5.000 105.43 527.15 2833-014-044 GRP-G 5.000 105.43 527.15 2836-011-018 RES & GRP-H 323.000 105.43 34,053.89 2836-016-044 GRP-I 6.000 105.43 632.58 2836-017-903 GRP-D 3.000 105.43 316.29 2844-001-032 RES & GRP-H 3.202 105.43 337.58 2844-001-033 RES & GRP-H 5.708 105.43 601.77 2844-001-034 RES & GRP-H 3.272 105.43 344.92 2844-001-046 RES & GRP-H 6.787 105.43 715.52 2844-001-068 RES & GRP-H 28.609 105.43 3,016.20 2844-001-072 RES & GRP-H 17.854 105.43 1,882.37 2849-024-019 GRP-I 6.000 105.43 632.58 2849-024-029 GRP-I 6.000 105.43 632.58 2861-062-049 GRP-G 5.000 105.43 527.15 2831-012-022 GRP-K3B 1.551 105.43 163.49 2831-012-023 GRP-K3B 0.403 105.43 42.44 2831-012-024 GRP-K3B 0.428 105.43 45.16 2831-012-027 GRP-K3B 0.984 105.43 103.77 Total 449.796 $47,422.04 SMD Annexation L-101 City of Santa Clarita Final Engineer's Report Fiscal Year 2025/2026 Landscaping and Lighting District Page 27