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HomeMy WebLinkAbout2011-04-26 - AGENDA REPORTS - SMD 1 ANNEX L 90 (2)CONSENT CALENDAR DATE: SUBJECT: DEPARTMENT: Agenda Item: 9 CITY OF SANTA CLARITA AGENDA REPORT City Manager Approval: Item to be presented by: April 26, 2011 Dennis Luppens ANNEXATION OF PARCELS INTO STREETLIGHT MAINTENANCE DISTRICT NO. 1 (ANNEXATION L-90) Administrative Services RECOMMENDED ACTION City Council: 1. Adopt resolution to initiate annexation proceedings for nine parcels into Streetlight Maintenance District (SMD) No. 1. 2. Approve the Engineer's Report, and call for and set the Public Hearing for June 14, 2011. BACKGROUND SMD No. 1 was established to collect funds to cover the expenses for energy and maintenance of City streetlights. The costs associated with the streetlights, inclusive of approximately 15,700, are billed by Southern California Edison to the City. As a condition of development, properties are required to annex into SMD No. 1 in order to pay their fair share toward costs associated with the installation and ongoing maintenance of streetlight facilities. All nine parcels identified in this annexation process benefit from SMD services. Eight parcels are developed and range in size from .47 acre to 5.77 acres. The ninth parcel is undeveloped and was recently purchased by the City from Caltrans for affordable housing. All nine property owners will be mailed assessment ballots, which will be tabulated at the Public Hearing held on June 14, 2011. Barring a majority protest at the Public Hearing, the City Council will be asked to give final approval of the annexation at that time. The annual levy of assessments for the above parcels covers the anticipated maintenance costs with the annexation for SMD No. 1. The maximum annual assessment is adjusted annually according to the change in the Los Angeles -Anaheim -Riverside Area Consumer Price Index ("CPI"), as determined by the United States Department of Labor, Bureau of Labor Statistics. Annually, the City Council will decide the actual assessment amount. The City Council may adopt a lesser assessment amount but may not exceed the maximum annual assessment rate. ALTERNATIVE ACTIONS 1. Do not annex the territory into Streetlight Maintenance District No. I.- 2. : 2. Other direction as determined by City Council. FISCAL IMPACT There is no fiscal impact to the General Fund by this action. ATTACHMENTS Resolution - Initiate SMD L-90 Annexation Proceedings L-90 Assessor Parcel Numbers L-90 Boundary Map L-90 Engineer's Report available in the City Clerk's Reading File -z- RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, ORDERING THE INITIATION OF ASSESSMENT BALLOT PROCEDURES, INITIATE PROCEEDINGS FOR THE ANNEXATION AND ANNUAL LEVY OF ASSESSMENTS, APPROVE THE PRELIMINARY ENGINEER'S REPORT, AND SET A TIME AND PLACE FOR A PUBLIC HEARING THEREON FOR THE ANNEXATION OF CERTAIN TERRITORY INTO SANTA CLARITA STREETLIGHT MAINTENANCE DISTRICT NO. 1, ANNEXATION L-90 WHEREAS, the City Council has, by previous Resolutions, formed and levied annual assessments for Streetlight Maintenance District No. 1 (hereafter referred to as the "District"), pursuant to the provisions of the Landscape and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) (hereafter referred to as the "Act") that provides for the levy and collection of assessments by the District to pay the maintenance and services of all improvements and facilities related thereto; and . WHEREAS, the City Council desires to annex territory into the District, and such territory will receive special benefit from the improvements within the proposed annexation; and WHEREAS, the City has ordered the preparation of an Engineer's Report in accordance with Article 4 (commencing with Section 22565) of Chapter 1 of the Streets and Highways Code. giving a description of the annexation; 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; and WHEREAS, the City Council, pursuant to the terms of the "Landscaping and Lighting Act of 1972," being Division 15, Part 2 of the Streets and Highways Code of the State of California (the "1972 Act"), Article XIIID of the Constitution of the State of California ("Article XIIID") and the Proposition 218 Omnibus Implementation Act (Government Code Section 53750 and following) (the "Implementation Act") (the 1972 Act, Article XIIID and the Implementation Act are referred to collectively as the "Assessment Law"), has, by approval of this Resolution, initiated proceedings to annex territory into a special assessment district and ordered the preparation of an Assessment Engineer's Report for the levy of assessments within such proposed annexation. Such special assessment district- is known and designated as the City of Santa Clarita Streetlight Maintenance District No. 1. The parcels to be annexed into the SMD are included in Annexation L-90. For a detailed description, please refer to Part E, Assessment Roll, of the Assessment Engineer's Report (on file with the City Clerk and open for public inspection). 3- WHEREAS, at this time the City Council desires to declare its intention to annex territory into said District and to provide for the levy of and collection of assessments for the next ensuing fiscal year to provide for the costs and expenses necessary to pay for the maintenance of the improvements (as defined in the Engineer's Report) in such Annexation. NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby resolve as follows: SECTION 1. Recitals. The above recitals are all true and correct. SECTION 2. Declaration of Intention. The public interest and convenience requires, and it is the intention of the City Council to order the annexation of territory, and to levy and collect assessments to pay the annual costs and expenses for the maintenance, operation, and/or servicing of all existing street lighting and appurtenant facilities located in public places within the boundaries of the District. The installation of street lighting and appurtenant facilities are necessary for the daily operation of said lighting 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 installment or replacement. The operation, maintenance, and servicing of all existing street lighting and appurtenant facilities 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 operating conditions, including providing said lights with the proper energy necessary to operate the lights. SECTION 3. Boundaries of the Annexation. An Assessment Diagram for the Annexation (Section 22570 of the Streets and Highways Code) and assessments (Section 22572 of the Streets and Highways Code) showing the area to be benefited and assessed for the improvements has been prepared as Part D of said Engineer's Report. The diagram, assessments, and improvement plans have been filed with the City Clerk, along with the Engineer's Report; and The diagram, which indicates by boundary lines the extent of the Annexation, is hereby declared to describe the proposed boundaries of the Annexation and shall govern for all details as to the extent and location of said Annexation. SECTION 4. Report of Assessment Engineer. The Assessment Engineer's Report is hereby approved as filed and incorporated herein by this reference. Reference is made to such Report for a full and detailed description of the improvements to be maintained, the boundaries of the Annexation and the proposed assessments upon assessable lots and parcels of land within the Annexation. 2 SECTION 5. Public Hearing. Notice is hereby given that a Public Hearing is scheduled to be held at 23920 Valencia 'Boulevard, Suite 105, Santa Clarita, California on June 14, 2011, at 6:00 pm. All interested persons shall be afforded the opportunity to hear and be heard. The City Council shall consider all oral statements and all written communications made or filed by any interested persons. The City Council shall, at the conclusion of the Public Hearing, also determine whether assessment ballots submitted pursuant to the Assessment Law in opposition to the proposed annexation and assessments exceed assessment ballots submitted in favor of such proposed annexation and assessments. SECTION 6. Right to Submit Assessment Ballot. Pursuant to the provisions of the Assessment Law, each record owner of property proposed to be annexed and assessed has the right to submit an assessment ballot in favor of or in opposition to the proposed annexation and assessment. Assessment ballots will be mailed to the record owner of each parcel located within the Annexation and subject to a proposed assessment. Each such owner may complete such assessment ballot and thereby indicate their support for or opposition to the proposed annexation and assessment. All such assessment ballots may be delivered by mail or in person to: City of Santa Clarita Office of the City Clerk 23920 Valencia Boulevard, Suite 304 Santa Clarita, CA 91355-2196 After 6:00 p.m.. on June 14, 2011, assessment ballots may be delivered to the City Clerk only at the location of the Public Hearing given above. All assessment ballots must be received by the City Clerk prior to the time the Public Hearing is closed. An assessment ballot delivered by mail, with a postmark prior to the date and time of the Public Hearing, but not received by the City Clerk until after the Public Hearing is closed, will not be counted. At the conclusion of the Public Hearing, the City Council shall cause the assessment ballots received in a timely manner to be tabulated. If a majority protest exists, the City Council shall not approve the annexation or impose assessments within the areas proposed to be annexed. A majority protest exists if, upon the conclusion of the Public. Hearing, assessment ballots submitted in opposition to the assessments within the Annexation exceed the assessment ballots submitted in favor of such assessments. In tabulating the assessment ballots, the assessment ballots shall be weighted according to the proportional financial obligation of the affected property. 3 SECTION 7. Notice. The City Clerk is hereby directed to mail notice pursuant to the Assessment Law of the Public Hearing, assessment ballot proceedings, the adoption of the Resolution of Intention and of the filing of the Assessment Engineer's Report, together with the assessment ballot materials, to the record owners of all real property proposed to be annexed. SECTION 8. Proceeding Inquiries. The following staff person is designated to respond to all inquiries for any and .all information relating to the proposed Annexation and these proceedings, including the assessment ballot procedure: Dennis Luppens City of Santa Clarita 23920 Valencia Boulevard, Suite 260 Santa Clarita, CA 91355 (661) 286-4005 SECTION 9. The City Clerk,shall certify to the adoption of this Resolution. PASSED, APPROVED AND ADOPTED this day of ATTEST: CITY CLERK DATE MAYOR 2011. 4 —6– STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Kevin Tonoian, Acting City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the day of , 2011, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: CITY CLERK — 17— STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) CERTIFICATION OF CITY COUNCIL RESOLUTION I, Kevin Tonoian, Interim City Clerk of the City of Santa Clarita, do hereby certify that this is a true and correct copy of the original Resolution No. 11-_, adopted by the City Council of the City of Santa Clarita, California on 2011, which is now on file in my office. Witness my hand and seal of the City of Santa Clarita, California, this day of , 20_. Kevin Tonoian Interim City Clerk By Susan Caputo, CMC Deputy City Clerk 6 City of Santa Clarita Streetlight Maintenance District No. 1 Annexation L-90 ASSESSOR PARCEL NUMBERS 1 2827-007-026 2 2827-007-031 3 2833-016-900 4 2836-015-021 5 2836-015-024 6 2836-015-025 2836-015-026 2836-027-081 2849-021-020 C11 • f i 1 �, • ..�, "501' W I L L D A N Financial Services Corporate Office Office Locations 27368 Via Industria Anaheim, CA Pensacola, FL Suite 110 Los Angeles Regional Phoenix, AZ Temecula, CA 92590 Oakland, CA Sacramento, CA Tel: (951) 587-3500 Tel: (800) 755-6864 Fax: (951) 587-3510 www.wilidan.com/financial CITY OF SANTA CLARITA STREETLIGHT MAINTENANCE DISTRICT NO.1 . ANNEXATION NO. L-90 FISCAL YEAR 201112012 ENGINEER'S REPORT CERTIFICATES This Report and the enclosed budgets, diagrams and descriptions outline the proposed annexation of territory to the City of Santa Clarita Streetlight Maintenance District No. 1, to be designated as Annexation No. L-90, including the improvements, budgets, parcels and assessments for fiscal year 2011/2012, as the same existed at the time of the passage of the Resolution of Intention. 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 District. The undersigned respectfully submits the enclosed Report as directed by the City Council. Dated this day of 12011. Willdan Financial Services Assessment Engineer By: By: Jim McGuire Richard Kopecky Sr. Project Manager, R. C. E. # 16742 Financial Consulting Services HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll and Assessment Diagram thereto attached was filed with me on the day of , 2011. Bv: KevinTonoian Acting City Clerk City of Santa Clarita Los Angeles County, California I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll and Assessment Diagram thereto attached was approved and confirmed by the City Council of the City of Santa Clarita, California, on the day of 2011. By: KevinTonoian Acting City Clerk City of Santa Clarita Los Angeles County, California Engineer's Report City of Santa Clarita — Streetlight Maintenance District No. 1 Annexation No. L-90 TABLE . ; CONTENTS - INTRODUCTION...........................................................................................................................1 RIGHT TO VOTE ON TAXES ACT (PROPOSITION 218)................................................................1 PART A - PLANS AND SPECIFICATIONS.....................................................................................4 DESCRIPTION OF IMPROVEMENTS AND SERVICES..................................................................4 PART B -ESTIMATED COST OF THE IMPROVEMENTS..................................................................5 2011-2012 FISCAL YEAR BUDGET ESTIMATE............................................................................5 PART C - METHOD OF APPORTIONMENT...................................................................................6 BACKGROUND........................................................................................................................6 SPECIAL BENEFIT ANALYSIS...................................................................................................6 GENERAL BENEFIT ANALYSIS..................................................................................................7 APPORTIONMENT....................................................................................................................8 PART D - ASSESSMENT DIAGRAM...........................................................................................11 PART E - ASSESSMENT ROLL..................................................................................................13 Engineer's Report City of Santa Clarita — Streetlight Maintenance District No. 1 Annexation No. L-90 This report is prepared in compliance with the requirements of Article 4, Chapter 1, of the Landscaping and Lighting Act of 1972, (hereinafter referred to as the "Act") which is Part 2, Division 15 of the California Streets and Highways Code. This report considers the annexation of territory to be known as: Annexation No. L-90, into the existing Santa Clarita Streetlight Maintenance District No. 1. Pursuant to the Act, the City Council is the legislative body for the District and may annex territory and levy annual assessments acting as the governing body for the operations and administration of the District. In addition, the Act provides for the levy of annual assessments after annexation into or formation of an assessment district for the continued maintenance and servicing of the district improvements. The Act further allows various areas to be annexed into an existing district when the territory in the annexation receives substantially the same proportional special benefits from the improvements. The costs associated with the installation, maintenance and servicing of the improvements may be assessed to those properties, which are benefited by the installation, maintenance and service. Section 22608 of the Streets and Highways Code further states that annexation proceedings will be limited to the territory proposed to be annexed into an existing district. Therefore this report will be limited to and address those properties associated and identified herein as Annexation No. L-90 as shown on the Assessment Diagram incorporated herein as Part D of this Report. RIGHT TO VOTE ON TAXES ACT (PROPOSITION 218) On November 5, 1996, the electorate approved Proposition 218, Right to Vote on Taxes Act, which added articles XIIIC and XIIID to the California Constitution. The Proposition 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 considered benefit assessments. The maintenance services in Streetlight Maintenance District No. 1 are for streetlights. They are 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. Streetlights are installed to provide better visibility for drivers. One hundred (100) percent of the illumination from the lights is directed to the street, ninety (90) percent on the street side of the curb and ten (10) percent behind the curb. The spacing of the lights is based on the speed of the vehicles and the natural ability of the motorists' eyes to adjust to light and dark areas. Most parcels included in the District were originally part of a development that was conditioned to install streetlight improvements before the development could proceed. Thereafter, each developer who was conditioned to enter into the District agreed to the inclusion of their property in the District along with the assessments being imposed on their property. Once the development.was sold, all subsequent owners of .parcels were also made aware through title reports and Department of Real Estate "White Paper" Reports that the parcels were in the District and subject to the assessments. Article XIIID, Section 5(a) of the State Constitution, provides that any assessment imposed exclusively to finance the capital costs or maintenance and operation expenses for sidewalks, streets, sewers, water, W -Li QAra Page 1 Finaneiai Services Engineer's Report City of Santa Clarita — Streetlight Maintenance District No. 1 Annexation No. L-90 flood control, drainage systems or vector control, shall be considered exempt from the procedures and approval process set forth in Section 4 of Article XIIID. Streetlights are installed on and are for street purposes. They are maintained and serviced for optimum use of the streets as intended in their design. Assessments for the maintenance and servicing of the streets must include streetlights and therefore, the assessments for Streetlight Maintenance District No. 1 are exempt under the provisions of Proposition 218. This exemption applies only to assessments existing on the effective date of Proposition 218, November 6, 1996, and the exemption is only from the -procedures and approval process set forth in Article XIIID, Section 4. Subsequent increases, if any, will be subject to the procedures and approval process of Section 4 of Article XIIID. All parcels included in Streetlight Maintenance District No. 1 prior to 1998 are covered by this exemption and the maximum assessment rate for those parcels is $12.38 per Equivalent Benefit Unit (EBU). Most parcels annexed into the District after 1998 were annexed at the rate of $50.00 per EBU and are subjected to a cost of living escalation equal to the annual change in the Consumer Price Index (CPI). The City may annually initiate proceedings for the continued maintenance and servicing of. streetlight improvements by passing a resolution which orders an engineer to prepare and file a detailed report that generally describes any proposed improvements or any substantial changes in existing improvements. This engineer's report details only the proposed annexation of those properties identified herein as Annexation L-90 to the existing district and the associated improvements; estimate of the costs of the improvements, including maintenance and servicing; a diagram, i.e., assessment district, showing the properties within the annexation establishing the parcels or lots which benefit. Once the report is completed, it is presented to the City Council (the legislative body) for its review and approval as presented, or may be modified and approved. After the report is approved, the City adopts the Resolution of Intention which declares its intent to annex territory and levy and collect assessments, including a description of the improvements, refers to the assessment district and annexation by its distinctive designation, refers to the report for the details of the district and annexation, and sets a time and place for a public hearing on the levy of the proposed assessment. Following the Council Meeting at which the resolution of intention is adopted, the City will cause a Notice of Public Hearing and an Assessment Ballot to be mailed to the property owners of record within the annexation territory, with which the property owners may indicate their support or opposition to the proposed new or increased assessment described herein. At the public hearing, the City Council will accept public testimony regarding the annexation and levy of assessments and upon conclusion of the public hearing the City will count the Assessment Ballots returned in favor of and/or opposing the annexation and assessment for the purpose of determining whether a majority protest exists. If a majority protest does not exist, the City Council may adopt a resolution confirming and levying the assessments with respect to Annexation L-90 to fund the maintenance and servicing of the improvements or abandon the proposed annexation. .111/1 LLD'AN'' Page 2 Financia! Services Engineer's Report City of Santa Clarita — Streetlight Maintenance District No. 1 Annexation No. L-90 This Report has been prepared in connection with the annexation of parcels to the District for fiscal year 2011/2012, designated and referred to as Annexation L-90, pursuant to a resolution of the City Council and consists of five (5) parts: PART A — PLANS AND SPECIFICATIONS _Contains a description of the improvements that are to be maintained or serviced by the District. PART B — ESTIMATE OF COST Identifies the estimated cost of the services or maintenance to be provided by the District, including incidental costs and expenses in connection therewith. PART C — METHOD OF APPORTIONMENT Describes the basis on which the costs have been apportioned to each parcel of land within the Maintenance District, in proportion to the estimated benefits to be received by such lots and parcels. PART D—ASSESSMENT DIAGRAM Contains a Diagram of the Maintenance District Boundaries showing the exterior boundaries of the Maintenance District, the boundaries of any zones within the Maintenance District consistent with the lines and dimensions of each lot or parcel of land within the Maintenance District. PART E —ASSESSMENT ROLL Identifies the maximum assessment to be levied on each benefited lot or parcel of land within the Maintenance District. WILCDAN Page 3 ,;„ _* Financia! Services Engineer's Report City of Santa Clarita — Streetlight Maintenance District No. 1 Annexation No. L-90 DESCRIPTION OF IMPROVEMENTS AND SERVICES The proposed improvements for Annexation No. L-90 as part of Streetlight Maintenance District No. 1, includes, but is not limited to, and may be generally described as follows: Installation of street lighting, traffic signals, and other appurtenant facilities. Services and maintenance include 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. Streetlight improvements are owned either by the Southern California Edison Company, the State of California Department of Transportation, or the City of Santa Clarita. Facilities constructed for or by the City of Santa Clarita are on file in the City offices. Proposed streetlight facilities in local proximity to parcels within Annexation L-90 are located in the City of Santa Clarita, generally in the vicinity of: Soledad Canyon Road; Golden Oak Road; Bramble Way; Goldenrod Way; Centre Pointe Parkway; Golden Triangle Road; Railroad Mountain Way; Pine Street; Newhall Avenue; Sierra Highway; Clearview Court; Oak Ridge Drive; Jeniel Court; and Circle J Ranch Road. Streetlight Maintenance District No. 1 ("SMD No. 1") was established to collect funds to cover the expenses for energy and maintenance of a majority of streetlights in the City. These costs are billed by the Southern California Edison Company for all of the approximate 14,950 streetlights currently owned and maintained by Edison and all of the approximate 760 streetlights owned by the City and maintained by the City through a maintenance contract with the County of Los Angeles. The proposed new and/or existing improvements for Streetlight Maintenance District No. 1 include, but are not limited to, and may be generally described as follows: The installation of streetlights, 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 streetlights, 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 specific plans and Specifications for the streetlight improvements associated with Annexation No. L-90 are incorporated and contained in the plans and specifications for Streetlight Maintenance District No. 1. These plans and specifications are voluminous and are not bound in this report but by this reference are incorporated and made a part of this report. The plans and specifications are on file at the City. AKWILLDAN Page 4 Financial Services Engineer's Report City of Santa Clarita — Streetlight Maintenance District No. 1 Annexation No. L-90 PART : —ESTIMATED COST IMPROVEMENTS The Act provides that the estimated costs of the improvements shall include the total cost of the improvements, including incidental expenses, which may include reserves to operate the District until funds are collected on the County tax rolls and are transferred to the City from the County around December 10 of the current fiscal year. The Act also provides that the amount of any surplus, deficit or contribution be included in the estimated cost of improvements. The net amount to be assessed on the lots or parcels within the district is the total cost of installation, maintenance and servicing with adjustments either positive or negative for reserves, surpluses, deficits and/or contributions. Estimated costs of improvements for Streetlight Maintenance District No. 1, including Annexation No. L-90 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. 2011-2012 FISCAL YEAR BUDGET ESTIMATE ASSESSMENT LOTS OR PARCELS: 9 TYPE OF LAND USE: 7 Non -Residential Parcels 2 Residential Parcel MAXIMUM ACTUAL FY 11-12 FY 11-12 BUDGET ITEM ASSESSMENT ASSESSMENT Total Funds Required $ 3,124.78 TBD* Available Carryover $0.00 $0.00 Other Revenue $0.00 $0.00 To be Raised by Parcel Assessment $3,124.78 TBD * ' The assessments to be levied on parcels within Annexation No. L-90 for Fiscal Year 2011/2012 are identified above as TBD (to be determined), because the actual assessment rate and assessment amount to be levied for the fiscal year will be established and adopted as part of the annual assessment proceedings for all parcels in Streetlight Maintenance District No. 1, which will not take place until after the proceedings for Annexation L-90 has been completed. Reference is made to the assessment roll included herein as Part E for individual parcel assessments. .` W1LLOAN Page 5 115 T Financia! Services Engineer's Report City of Santa Clarita — Streetlight Maintenance District No. 1 Annexation No. L-90 BACKGROUND The Landscaping and Lighting Act of 1972 provides that assessments may be apportioned upon all assessable lots or parcels of land within. an assessment district or annexation in proportion to the estimated benefits to be received by each lot or parcel from the improvements. In addition, Proposition 2.18 requires that a parcel's assessment may not exceed the reasonable cost of the proportional special benefit conferred on that parcel. The Proposition provides that only special benefits are assessable, and the City must separate the general benefits from the special benefits conferred on a parcel. A special benefit is a particular and distinct benefit over and above general benefits conferred on the public at large, including real property within the district or annexation. The general enhancement of property value does not constitute a special benefit. In determining the proportionate special benefit derived by each identified parcel, the proximity of the parcel to the public improvements described in Part A 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, it has been 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 the existing District, most of the streetlight improvements were installed by the developers, subdividers of the land, and the continued maintenance was guaranteed through the establishment of a Streetlight Maintenance District. If the installation of the improvements and the guaranteed maintenance did not occur, the lots would not have been established and could not have been sold to any distinct and separate owner. The establishment of each distinct and separate lot is a special benefit which permits the construction of a building or structure on the property and the ownership and sale of the distinct lot in perpetuity. In the annexation territory (Annexation L-90), all the lots are established at the same time once the conditions regarding the improvements and the continued maintenance are guaranteed. As a result, each lot within the annexation territory and the district receives a special and distinct benefit from the improvements and to the same proportional benefit. The improvements also continue to confer a particular and distinct special benefit upon parcels within the annexation because of the nature of the improvements. The proper maintenance of the streetlights and appurtenant facilities specially benefit parcels within the annexation. The proper maintenance of the streetlights and appurtenant facilities reduces property -related crimes (especially vandalism) against properties in the annexation. The streetlights located in Streetlight Maintenance District No. 1 and the proposed Annexation No. L-90 helps to visually join the various segments of the community, which enhance property. The benefit provided by streetlights consists of safety for pedestrians and motorists involved with the property in the annexation territory during the nighttime hours. This is a particular and distinct special benefit to all developed parcels in Annexation L-90 as well as the Streetlight Maintenance District No. 1 as a whole. 47-_0,&WILLDAN 1 Page 6 Financial Services I Engineer's Report City of Santa Clarita — Streetlight Maintenance District No. 1 Annexation No. L-90 Streets are constructed for the safe and convenient travel by vehicles and pedestrians to and from properties (particularly developed properties) and they also provide an area for underground and overhead utilities. As such, street lighting is considered and determined to be an integral part of streets as a permanent public improvement. One of the principal purposes of fixed roadway lighting is to create a nighttime environment conducive to the use of a property providing quick, accurate, and comfortable seeing. These factors, if attained, combine to improve traffic safety and achieve efficient traffic movement to and from the properties within the District. 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. Streetlights are installed on and are for street purposes resulting from or to enhance the full and best use of properties they serve and are maintained and serviced to allow the street to perform to the standards'it was designed including streetlights which are considered an integral part of the entire street, the same as curb, gutter, pavement, signage and striping. Taken as a group, they are the elements that provide a safe route for motorists and pedestrians to and from properties. Streetlights are installed to make streets safer. 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 design speed of the street and the natural ability of the motorist's eyes to adjust to light and dark areas. The system of streets adjacent to the annexation is established to provide access to each parcel in the annexation. Streetlights provide a safer street environment for owners of the parcels served. If the parcels were not subdivided to provide individual parcels to owners within the annexation, there would be no need for a system of streets with safety lighting. 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 some government owned parcels, such as easements and flood channel parcels. Therefore, the installation, operation and maintenance of streetlights are for the express, special benefit of the parcels within the District. GENERAL BENEFIT ANALYSIS In addition to the special benefits received by the parcels within the proposed annexation, there are incidental general benefits conferred by the improvements. It is estimated that the general benefit portion of the benefit received from the improvements for any annexation is less than one (1) percent of the total benefit. Nonetheless, the City has agreed to ensure that no property is assessed in excess of the reasonable cost of the proportional special benefit conferred on that property. The total benefits 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 streetlight maintenance costs which are associated with general benefits will not be assessed to the parcels in the district, but will be paid from other City Funds. These general benefits are more than adequately offset by the substantial contribution from the ad valorem street lighting assessment. WILLDAN 1 Page 7 Vfinaneia! Services 1 Engineer's Report City of Santa Clarita — Streetlight Maintenance District No. 1 Annexation No. L-90 APPORTIONMENT For Fiscal Year 2011-12, the parcels originally included in Streetlight Maintenance District No. 1 will continue with the rate schedule as used by Los Angeles County at the time of the transfer of jurisdiction in 1998. Parcels annexed into the District after 1998 are assessed at a higher rate as approved by the City Council. The Landscape and Lighting Act of 1972 indicates that lighting assessments may be apportioned by any formula or method which fairly distributes costs among all lots or parcels within the District in proportion to the estimated benefits received. The primary benefits of street lighting are for the convenience, safety, and protection of people and to a lesser extent the security or protection of property, property improvements, and goods. The intensity or degree of illumination provided can have a bearing on both. The proposed maximum assessment rate for Fiscal Year 2010-11 was $57.27 per equivalent benefit unit (per EBU). This maximum assessment rate may increase based on the annual change in the Consumer Price Index (CPI), during the preceding year, for All Urban Consumers, for the Los Angeles, Riverside and Orange County areas, published by the United States Department of Labor, Bureau of Labor Statistics (or a reasonably equivalent index should the stated index be discontinued). Applying this inflationary adjustment to the Fiscal Year 2010-11 rate of $57.27 per EBU it is estimated that the maximum assessment rate for Fiscal Year 2011-12 will be $58.59 per EBU based on the annual percentage change of 2.3% for the period of February 2010 to February 2011, which was the most recent CPI adjustment published by the United States Department of Labor, Bureau of Labor Statistics at the time this report was prepared. The following information can be used to determine the unit count per parcel. Based on land use information provided by the County Assessor, it has been determined that approximately 96 percent of the parcels in the existing district are in a residential category. Approximately 95 percent are single-family homes or condominiums, and the remaining residential properties are comprised of 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 has been assigned to the basic family unit or Equivalent Benefit Unit (EBU), i.e. the single-family home or condominium. The existing district includes some properties that may not actually have streetlights in their block but which do receive a neighborhood benefit from the lights in the area. These properties were also included in the District. Therefore a value of 1/2 was given to "People Use" while "Intensity" and "Security Benefit" were each rated at 1/4 to form the basic unit. Parcels in other land use categories were then rated by comparison with the basic EBU. In the remainder of the residential category, which is comprised of multiple rental type properties, the value for Intensity would remain at 1/4, 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 1/4 for Intensity, 1 for People Use and 1/2 for Security Benefit for a total of 1-3/4 EBU's. The owner of such property would therefore pay 1- 3/4 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. Thus, a 5 -unit apartment would be assigned 1/4 for Intensity, 2-1/2 for People Use and 1 for Security Benefits for a total of 3-3/4 EBU's. As the number of apartments on a parcel increases, the service charge units assigned for people would follow a declining scale. I " WI LLDAN ( Page 8 Financial Services Engineer's Report City of Santa Clarita - Streetlight Maintenance District No. 1 Annexation No. L-90 Table 1 below summarizes the Residential EBU Calculations: Table 1 - EBU Calculations for Residential Parcels RESIDENTIAL CLASSIFICATIONS People Use Security Intensity Total EBUs SFR and Condos 0.50 0.25 0.25 = 1.00 per parcel APT2 Apartments (2-4 units) 112 x units 0.25 x units 0.25 2 1.00 0.50 0.25 = 1.75 per parcel 3 1.50 0.75 0.25 = 2.50 per parcel 4 2.00 1.00 0.25 = 3.25 per parcel APT5 Apartments (5-20 units) 112 x units 1.00 0.25 5 2.50 1.00 0.25 = 3.75 per parcel 20 10.00 1.00 0.25 = 11.25 per parcel APT21 Apartments (21-50 units) 113 x (units -20) + the total EBU for a 20 -unit apartment 50 10.00 + 11.25 = 21.25 per parcel APT51 Apartments (51-100 units) 114 x (units -50) + the total EBU for a 50 -unit apartment 100 12.50 + 21.25 = 33.75 per parcel APT101 Apartments (100+ units) 115 x (units -100) + the total EBU for a 100 -unit apartment 101 0.20 + 33.75 = 33.95 per parcel 175 15.00 + 33.75 = 48.75 per parcel 200 20.00 + 33.75 = 53.75 per parcel The non-residential lots or parcels are separated into 38 land use categories as determined by the County Assessor. Equivalent Benefit Units (EBU's) are assigned on the basis of average benefits for different groups of land uses, Groups A -K. Properties within the 10 land use categories in Group K varied widely from the norm and therefore these lots or parcels were considered on an individual basis. Each of the parcels or lots in these land use categories was identified on the official lighting district maps and each streetlight or portion thereof in the immediate proximity of the lots or parcels benefiting the lots or parcels was assigned a number of units as identified below. The total number of EBU's so determined for that category would be distributed among the lots or parcels in that category in proportion to the lot or parcel area as shown in the table below. A minimum of 3 EBU's would be assessed to each lot or parcel to be compatible with. group D which contains many of the smaller business categories. Several large lots or parcels in 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, no charge would be assessed on vacant parcels within the district. WWILLDAN Page 9 Financial Services I Engineer's Report City of Santa Clarita - Streetlight Maintenance District No. 1 Annexation No. L-90 Table 2 below summarizes the Non -Residential EBU Calculations: Table 2 - EBU Calculations for Non -Residential Parcels NON-RESIDENTIAL CLASSIFICATIONS People Use Security Intensity Total EBUs GRP -A Group A Irrigated Farms, Dry Farms, Cemeteries, Dump Sites 1 EBU minimum charge per parcel 1.00 per parcel Animal Kennels, Nurseries and greenhouses, Industrial GRP -B Group B parking lots, Churches, Private Schools, Petroleum and 1.00 0.50 0.50 = 2.00 per parcel Gas, Utility GRP -C Group C Commercial Parking Lots 1.00 0.50 1.00 = 2.50 per parcel Office & Professional building, Bank, Savings & Loan, GRP -D Group D Service Shop, Lumber Yard, Golf Course, Race 1.00 1.00 1.00 = 3.00 per parcel track/stable, Camp, Home for the Aged GRP -E Group E Store, Store w/ office or residence, Service Station, Club 2.00 1.00 1.00 = 4.00 per parcel & Lodge Hall GRP -F Group F Rooming House (same as 6 unit apartment) 1.00 3.00 0.25 = 4.25 per parcel GRP -G Group G Restaurant, Theater 3.00 1.00 1.00 = 5.00 per parcel GRP -H Group H Light Manufacturing, Food Processing Plant, 2.00 2.00 1.00 = 5.00 per parcel Warehousing GRP -I Group I Auto, Recreational Equipment Sales & Service 2.00 2.00 2.00 = 6.00 per parcel GRPJ Group J Market, Bowling Alley, Skating Rink, Department Store, 4.00 2.00 2.00 = 8.00 per parcel Hotel/Motel, Mobile Home Park Group K All parcels in Group K are assessed a minimum of 3 EBU's GRP -K1 Group K-1 3.00 1.00 1.25 = 5.25 Open Storage 0.014973 per 100 SgFt,of lot Mineral Processing 0.005615 per 100 SgFt of lot GRP -K2 Group K-2 4.00 1.00 1.25 = 6.25 Private College/University 0.001736 per 100 SgFt of lot Wholesale and manufacturing outlets 0.059858 per 100 SgFt of lot Athletic and Amusement Facilities 0.027431 per 100 Sq Ft of lot Heavy Manufacturing 0.006382 per 100 Sq Ft of lot Hospitals 0.012886 per 100 SgFt of lot GRP -K3 Group K-3 4.00 1.00 1.50 = 6.50 Motion Picture, Radio, T.V. 0.010938 per 100 SgFt of lot Neighborhood Shopping Center 0.014449 per 100 SgFt of lot Regional Shopping Center 0.021812 per 100 SgFt of lot Vacant 0.00 0.00 0.00 = 0.00 per parcel ' `b WI LLDAN Page 10 t Financial Servoces Engineer's Report City of Santa Clarita — Streetlight Maintenance District No. 1 Annexation No. L-90 The Assessment Diagram for the existing Santa Clarita Streetlight Maintenance District No. 1 including previous annexations is on file at the City and by reference herein is made part of this Report. The Assessment Diagram for Annexation L-90 is provided on the following page and the parcels that comprise Annexation L-90, consist of all lots, parcels and subdivisions of land listed on the Assessment Roll contained herein as Part E, the lines and dimensions of which are shown on the Los Angeles County Assessor's parcel maps for the current year and are incorporated by reference herein and made part of this report. �� WILLGDAN I Page 11 Ir l Financia! Services C• -o o rn � Z � � � O co C:Y) U aci Q c co m co Z3 m U co CIDm co U a> U C N EC C C) N W 65 E c m N cv n cnJ C O .5 X N C C Q I O J. `� ? �•,,, W. zt gat t i a .n:R W - Z O foo N W N �N co 6 � I Engineer's Report City of Santa Clarita — Streetlight Maintenance District No. 1 Annexation No. L-90 All assessed lots or parcels of real property within Annexation L-90 are listed on the assessment roll below. This assessment roll identifies each Assessor's Parcel Number included in Annexation L-90 and the parcel's corresponding land use and proposed maximum assessment for Fiscal Year 2011/2012. These lots or parcels are more particularly described in the County Assessor's Roll, which is on file in the office of the Los Angeles County Assessor and by reference is made a part of this report. The maximum assessment rate for Streetlight Maintenance District No. 1 and the calculated proportional assessment amount for each parcel, including Annexation No. L-90 includes an annual inflationary adjustment (yearly increase), based upon the percentage increase in the Consumer Price Index for All Urban Consumers, for the Los Angeles -Riverside -Orange County Area ("CPI"), as determined by the -United States Department of Labor, Bureau of Labor Statistics, or its successor. Each fiscal year, the assessment engineer shall compute the percentage difference between the CPI of each current year and the CPI for the previous year, and shall then adjust the existing maximum assessment rate by the increase in this percentage for the following fiscal year. Should the Bureau of Labor Statistics revise such index or discontinue the preparation of such index, the engineer shall use the revised index or a comparable system as approved by the City Council for determining fluctuations in the cost of living. The assessment rate applied in any one fiscal year will not exceed this adjusted maximum assessment rate. APN Land Use Designation Units/Acreage EBU Proposed Maximum Rate FY 11-12 Proposed Maximum Assessment FY 11-12 2827-007-026 Group H 0.51 Acres 5.000 $58.59 $ 292.95 2827-007-031 Group H 0.98 Acres 5.000 $58.59 $ 292.95 2833-016-900 APT21 33 Units 15.583 $58.59 $ 913.01 2836-015-021 Group H 2.42 Acres 5.000 $58.59 $ 292.95 2836-015-024 Group H 4.00 Acres 5.000 $58.59 $ 292.95 2836-015-025 Group H 5.77 Acres 5.000 $58.59 $ 292.95 2836-015-026 Group H 1.80 Acres 5.000 $58.59 $ 292.95 2836-027-081 APT2 2 Units 1.750 $58.59 $ 102.53 2849-021-020 Group 1 0.47 Acres 6.000 $58.59 $ 351.54 53.333 $ 3,124.78 Willdan Financial Services Page 13