HomeMy WebLinkAboutItem 1e: Citywide Lighting District No. 1 Assessments and Resolution 6763 Confirming Engineer's Report Collection of Levy joke
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STAFF REPORT
Public Works Services Department
DATE: July 19, 2011
TO: Mayor and City Council
FROM: Toni Tait, Public Works Services Director
Prepared by: Maria A. Taylor, Senior Management Analyst
SUBJECT: CONDUCT A PUBLIC HEARING FOR THE ARCADIA CITYWIDE
LIGHTING DISTRICT NO. 1 ASSESSMENTS FOR FISCAL YEAR
2011/12
Recommendation: Approve
• RESOLUTION 6763 CONFIRMING THE ENGINEER'S REPORT FOR
THE LEVY AND COLLECTION OF THE ARCADIA CITYWIDE
LIGHTING DISTRICT NO. 1 AND THE ASSESSMENT DIAGRAM
CONNECTED THEREWITH; AND ORDERING THE LEVY AND
COLLECTION OF ASSESSMENTS FOR FISCAL YEAR 2011/12
Recommendation: Adopt
SUMMARY
As part of the District formation, the City conducted a property owner protest ballot
proceeding for the Arcadia Citywide Lighting District No. 1 in accordance with the
provisions of Government Code, Section 53753, and California Constitution, Article
XIIID Section 4.
At the July 5, 2011 City Council meeting, the Council adopted Resolutions 6779, 6780
and 6781, which initiated the proceedings and declared the City's intention for the levy
and collection of assessments within the Arcadia Citywide Lighting District No. 1 and
declared its intention to conduct a public hearing for the levy and collection of
assessments within the District for fiscal year 2011 /2012. Upon conclusion of the Public
Hearing, staff recommends that the City Council adopt Resolution 6763 approving the
Arcadia Citywide Lighting District No. 1 Engineer's Report and order the levy and
collection of assessments for fiscal year 2011/2012.
Page 1 of 4
Mayor and City Council
July 19, 2011
DISCUSSION
The Arcadia Citywide Lighting District No. 1 was formed in 2010 for the purpose of
funding in part, the ongoing operation, maintenance and servicing of the City's street
lighting system based on the proportional special benefits to properties within the City.
In an effort to ensure appropriate allocation of the District's annual street lighting costs
based on proportional special benefits, the assessment methodology for the District was
divided into two (2) zones.
• Zone 1 is properties along major thoroughfares (arterial street lights); and
• Zone 2 is properties in residential neighborhoods (local street lights)
Property owners in Zones 1 and 2 who have sparse lighting will pay twenty percent
(20 %) of what the annual rate is for that particular land use. Properties in areas of the
City that do not have street lighting will not be assessed.
In June 2011, the City Council approved the City's 2011/2012 Operating Budget. The
budget included a 2.5% increase in the Lighting District's annual operating budget.
This increase is partially due to an increase in salaries and wages and in the cost of
electricity. The District (property owners) will only partially fund the operation,
maintenance and servicing of the City's street lighting system that provide special
benefits to properties within the City. For FY 2011/2012, the City's total annual street
lighting maintenance budget is $1,098,495, of which, $878,446 has been determined to
specially benefit properties within the District based on the assessment methodology.
However, the District was established to fund only a portion of this amount equal to
$429,212. The Arcadia Citywide Lighting District No. 1 allows for a 3% inflationary
adjustment to the maximum assessment rate for each fiscal year to account for any
reasonable increases in electricity and other costs associated with the ongoing
maintenance and operations of street lights.
At the July 5, 2011 City Council meeting, the Council adopted Resolutions 6779, 6780
and 6781, which initiated the proceedings and declared the City's intention for the levy
and collection of assessments within the Arcadia Citywide Lighting District No. 1 and set
the date for the public hearing. Notice for the date of the Public Hearing was published
in the local newspapers on July 4 and July 11.
For the proposed 2011/2012 Arcadia Citywide Lighting District No 1, the City will be
contributing 61% or $669,284 of the total assessment while the property owners will pay
the remaining 39% or $429,212 of the total street lighting costs. Therefore, for a single -
family property owner in Zone 1, the annual assessment rate increase will be $0.42
cents ($16.73 to $17.15); Zone 2 will be $0.71 cents ($28.44 to $29.15).
Page 2 of 4
Mayor and City Council
July 19, 2011
Using the single - family property as the baseline for the assessment, the table below
lists the assessment rate for Zones 1 and 2.
Proposed Annual Assessment Rate for FY 2011/12 Based on a Single - Family Property
— I
FY 10/11 FY 11/12 Difference
^_ ; Assessment Rate Assessment Rate ( +2.5 %)
Lighting District j
Total Budget $1,071,595 $1,098,495 + $26,900
Zone 1
Arterial Lights $16.73 $17.15 + $0.42
($3.35) * ($3.43) * + ($0.08)
Zone 2
Local Lights $28.44 $29.15 + $0.71
($5.69) * ($5.83) * + (0.14)
* Annual Assessment Rate for properties in Zones 1 and 2 that have sparse lighting
Pursuant to the Landscaping and Lighting Act of 1972, staff is requesting that the City
Council conduct a public hearing to receive public comments regarding the Arcadia
Citywide Lighting District's budget and the Engineer's Report for the annual levy of
assessments. Upon conclusion of the Public Hearing, staff recommends that the City
Council adopt Resolution 6763 approving the Arcadia Citywide Lighting District No. 1
Engineer's Report and order the levy and collection of assessments for fiscal year
2011/2012.
ENVIRONMENTAL IMPACT
The environmental assessment is not necessary for this evaluation.
FISCAL IMPACT
The 2011/2012 Arcadia Citywide Lighting District No. 1 operating budget is $1,098,495,
which includes a 2.5% increase or $26,900 from last year's operating budget and will be
reflected in the property owners' assessment for 2011/2012.
VVith this proposed adjustment rate, the City or General Fund's portion for the annual
street lighting budget is $669,284 (the City's street lighting contribution), while the
special benefit or the property owners' portion is $429,212.
Page 3 of 4
Mayor and City Council
July 19, 2011
RECOMMENDATION
1. Conduct a Public Hearing for the Arcadia Citywide Lighting District No.
1 assessments for fiscal year 2011/12
2. Adopt Resolution 6763 confirming the Engineer's Report for the levy
and collection of the Arcadia Citywide Lighting District No. 1 and the
assessment diagram connected therewith; and ordering the levy and
collection of assessments for fiscal year 2011/12
Approved by: ;d .40
Donald Penman, City Manager
TT: MT
Page 4 of 4
RESOLUTION NO. 6763
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARCADIA, CALIFORNIA CONFIRMING THE ENGINEER'S
REPORT FOR THE LEVY AND COLLECTION OF THE
ARCADIA CITYWIDE LIGHTING DISTRICT NO. 1 AND THE
ASSESSMENT DIAGRAM CONNECTED THEREWITH; AND
ORDERING THE LEVY AND COLLECTION OF
ASSESSMENTS FOR FISCAL YEAR 2011/12
WHEREAS, the City Council of the City of Arcadia (the "City ") pursuant to the
provisions of the Landscaping and Lighting Act of 1972, being Part 2, Division 15 of the
California Streets and Highways Code, commencing with Section 22500 (hereafter
referred to as the "Act "), did by previous resolutions, initiate proceedings for levy and
collection of assessments within the Arcadia Citywide Lighting District No. 1 (hereafter
referred to as the "District "), and declared its intention to conduct a public hearing for the
levy and collection of assessments within the District for Fiscal Year 2011/12 for the
special benefits received by properties therein for the annual operation, maintenance
and servicing. of. _ strut.lighting_ improvements _ and appurtenant facilities related thereto in _
accordance with the provisions of the California Constitution Article XIIID (the
"Constitution "); and
WHEREAS, an Engineer's Report has been prepared, filed and presented to the
City Council in connection with the proceedings for the levy and collections of
assessments within the District for Fiscal Year 2011/12 as required by the Act and the
Constitution; and
WHEREAS, the City Council has duly held a public hearing regarding these
matters pursuant to the provisions of the Constitution; and
WHEREAS, the City Council desires to levy and collect assessments against
parcels of land within the District for the fiscal year commencing July 1, 2011 and
ending June 30, 2012 (Fiscal Year 2011/12), to pay the costs and expenses associate
with the ongoing operation, maintenance, and servicing of improvements and
appurtenant facilities related thereto that have been determined to be of special benefit
to the properties within the District as described in the Engineer's Report.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA,
CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
SECTION 1. The preceding recitals are all true and correct,
SECTION 2. Following notice duly given, the City Council has held a full and
fair public hearing regarding the District, the levy and collection of assessments, and
has considered all public testimony and written statements, protests and
communications made or filed by interested persons.
SECTION 3. Based upon its review of the Engineer's Report, which has been
filed with the City Clerk, the City Council hereby finds and determines that:
a) The and within the District receives special benefit from the operation,
maintenance and servicing of the street lighting improvements, and appurtenant
facilities related thereto, to be provided by the District as described in the Engineer's
Report.
b) The District as defined by the Assessment Diagram contained in the
Engineer's Report, includes all of the lands receiving such special benefit.
2
c) The net amount to be assessed upon the lands within the District has been
apportioned by a formula and method which fairly distributes the net amount among all
eligible parcels in proportion to the special benefit to be received by each parcel from
the improvements and services to be provided for Fiscal Year 2011/12.
SECTION 4. The City Council hereby orders the proposed improvements as
described within the Engineer's Report to be made. The improvements so described
may include, but are not limited to the materials, equipment, utilities, labor, contract
services and incidental expenses necessary for the ongoing maintenance, operation
and servicing of local street lighting improvements and appurtenant facilities within the
District that provide special benefits to properties therein.
SECTION 5. The maintenance, operation and servicing of improvements
shall be performed pursuant to the Act, and for Fiscal Year 2011/12, the County Auditor
of Los Angeles shall enter on the County Assessment Roll opposite each parcel of land
the amount of levy established by - E Report - an - d - such - levies shalt be - - - —
collected at the same time and in the same manner as the County taxes are collected.
After collection by the County, the net amount of the levy shall be paid to the City
Treasurer.
SECTION 6. The adoption of this Resolution constitutes the levy and
collections of assessments within the District for the fiscal year commencing July 1,
2011 and ending June 30, 2012, as described in the Engineer's Report and adopted by
the City Council,
3
SECTION 7. The City Clerk shall certify to the adoption of this Resolution,
and the minutes of this meeting shall so reflect the City Council's approval of the
assessments for Fiscal Year 2011/12 as contained in the Engineer's Report.
SECTION 8. The City Clerk is hereby authorized and directed to file the levy
of assessments for Fiscal Year 2011/12 as approved, with the County Auditor of Los
Angeles.
SECTION 9. This Resolution shall become effective immediately upon its
adoption and the City Clerk shall certify to the adoption.
Passed, approved and adopted this 19 day of July, 2011.
Mayor of the City of Arcadia
ATTEST:
City Clerk
APPROVED AS TO FORM:
95(;416,„
Stephen P. Deitsch
City Attorney
4
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City of Arcadia
ARCADIA CITYWIDE
LIGHTING DISTRICT NO. 1
2011/2012 ENGINEER'S REPORT
Intent Meeting: July 5, 2011
Public Hearing: July 19, 2011
27368 Via Industria
Suite 110
Temecula, CA 92590
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F 951.587.3510
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www.willdan.com /financial WI LLDAN
Financial Services
ENGINEER'S REPORT AFFIDAVIT
Establishment of Annual Assessments for the:
Arcadia Citywide Lighting District No. 1
City of Arcadia,
County of Los Angeles, State of California
This Report describes the Arcadia Citywide Lighting District No. 1 including the
improvements, budgets, parcels and assessments to be levied for fiscal year 2011/2012, as
they 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 ;.J day ofL , 2011.
Wilidan Financial Services
Assessment Engineer
On Behalf of the City of Arcadia
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By: — /: —.`
Stacee Reynolds
Project Manager
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Richard Kopecky V'� F � Gi
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TABLE OF CONTENTS
INT RODUCTION ......................... R
PART 1— PLANS AND SPECIFICATIONS 3
A. DESCRIPTION OF THE DISTRICT 3
B. DESCRIPTION OF IMPROVEMENT AND SERVICES 3
Improvements and Services Authorized by the 1972 Act 3
District Facilities and Improvements 4
PART 11— METHOD OF APPORTIONMENT 6
A. BENEFIT ANALYSIS 6
Zones of Benefit 7
B. ASSESSMENT METHODOLOGY 9
Equivalent Benefit Units 9
Benefit Multiplier Factor 18
C. ASSESSMENT RANGE FORMULA 20
PART Ill — DISTRICT BUDGET 21
A. BUDGET 21
B. PARCEL ASSESSMENT CALCULATION 23
PART IV — DISTRICT DIAGRAM 24
PART V— ASSESSMENT ROLL 26
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Financial Services
INTRODUCTION
The Arcadia Citywide Lighting District No. 1 (hereafter referred to as the "District ") was formed
in 2010 for the purpose of funding in part, the ongoing operation, maintenance and servicing of
public lighting improvements within the City of Arcadia (hereafter referred to as the "City ") based
on the proportional special benefits to properties within the City.
The District was formed to levy and collect annual assessments on the County tax rolls to fund
such improvements and appurtenant facilities authorized pursuant to the Landscape and
Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code
commencing with §22500 (hereafter referred to as the "1972 Act "). In conjunction with the
authority of the 1972 Act, the assessments are calculated in compliance with the substantive
and procedural requirements of the California State Constitution Article XIIID (hereafter referred
to as the "California Constitution ").
As part of the District formation, the City conducted a property owner protest ballot proceeding
for the new special benefit assessments in accordance with the provisions of Government
Code, Section 53753, and California Constitution, Article XIIID Section 4. in conjunction with
this ballot proceeding, the City Council conducted a public hearing on July 20, 2010 to consider
public testimonies, comments and written protests regarding the formation of the District and
levy of assessments. Upon conclusion of the July 20, 2010 public hearing, property owner
protest ballots received were opened and tabulated. No majority protest existed.
On August 3, 2010, the City Council, by Resolution No. 6737, adopted the Engineer's Report for
the formation of the District, including the assessment diagram; ordered the formation of the
District; approved the levy and collection of the assessments commencing in fiscal year
2010/2011, approved the assessment range formula as described in the formation Report; and
ordered the improvements and services to be made.
This Engineer's Report (hereafter referred to as "Report") has been prepared in connection with
the establishment of the District and the levy and collection of annual special benefit
assessments related thereto commencing in fiscal year 2010/2011, pursuant to Chapter 1,
Article 4 beginning with §22565 of the 1972 Act and the provisions of the California Constitution.
Said District shall include all lots and parcels of land within the City at the time this Report was
prepared, the boundaries of which are coterminous with the City boundaries.
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 special benefit assessments.
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This Report consists of five (5) parts:
Part.
Plans and Specifications: Provides an overall description of the District and the improvements
and services. While it has been determined that street lights are provided throughout most of
the City and these improvements and services will provide special benefits to parcels within the
District that are directly associated with those lights, it is also recognized that street lights on
arterial streets provide a general benefit to the public at large as well as properties within the
City. Therefore, the District was formed with two (2) zones of benefit (hereafter referred to as
"Zones "), which are described in more detail in this section of the Report as well as Part II
(Method of Apportionment). A diagram showing the exterior boundaries of the District and the
Zones established therein is attached and incorporated herein under Part IV (District Diagram).
Part H
Method of Apportionment: This section of the Report provides a discussion of benefits to
properties within the District, the apportionment of the improvement and service costs, the
method of calculating each property's proportional special benefit and the calculation of annual
assessments.
Part III
District Budget: The District budget provides an estimate of the annual funding required for the
estimated annual maintenance, servicing and operation of street light improvements and
services within the District and specifically the costs associated with the improvements and
services determined to be of special benefit to parcels within each Zone of the District. The
budget identifies an estimate of anticipated annual expenses to service, maintain and operate
existing street lighting improvements throughout the City and the proportionate allocation of
costs within each Zone allocated according to the relative special benefits within each Zone,
including, but not limited to, the costs of maintaining and servicing of the street lights and
related facilities, energy costs and related incidental expenses authorized by the 1972 Act.
Part IV
District Diagram: A Diagram showing the exterior boundaries of the District and the current
Zones therein is provided in this section of the Report and includes all parcels of land that will
receive special benefits from the improvements and for which an assessment may be imposed
as part of this District. Reference is hereby made to the Los Angeles County Assessor's maps
for a detailed description of the lines and dimensions of each lot and parcel of land within the
District.
Part V
Assessment Roll: A listing of each parcel within the District and its corresponding assessment
amount to be presented to the property owners. The assessment amount for each parcel is
based on the parcel's proportional special benefit as calculated in accordance with the method
of apportionment.
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PART I - PLANS AND SPECIFICATIONS
A. DESCRIPTION OF THE DISTRICT
The territory within the District consists of all lots, parcels of land and subdivisions within the
City, the boundaries of which are coterminous with the City's boundaries and the metes and
bounds that define the City boundaries are incorporated herein as the metes and bounds of
this District. An Assessment Diagram incorporated herein under Part IV of this Report,
outlines the boundaries of the District and the Zones therein. This diagram incorporates all
lots, parcels and subdivisions of land within the District and Zones as they existed at the
time this Report was prepared. The District generally includes all or a portion of the parcels
identified on the following Los Angeles County Assessor's Parcel Map Books:
5378; 5379; 5382; 5383; 5385 ;5764;5765;5766;5769;5770;5771;
5772; 5773; 5775; 5776; 5777 ;5778;5779;5780;5781;5782;5783;
5784; 5785; 5787; 5788; 5789 ;5790;5791;8501;8503;8509;8510;
8511; 8532; 8538; 8541 ;8545;8571;8572;8573;8586;8587
Within the boundaries of the District, two (2) Zones — Zone 01 and Zone 02 — have been
established to identify parcels and areas within the District for reasons of separating general
benefits from special benefits, and differentiating between special benefits and maintenance
costs associated with street lighting along arterial streets versus non - arterial streets. It has
been determined that the parcels within these Zones receive differing degrees of special
benefits from the improvements and services to be provided by the District.
Zone 01 and Zone 02 have been established to incorporate properties that receive direct
and particular special benefits from street light improvements and services along arterial
streets versus street lighting improvements and services that are along non - arterial streets.
The two Zones within the District and the improvements and benefits associated with the
properties therein are described in more detail in Part II (Method of Apportionment) of this
Report.
B. DESCRIPTION OF IMPROVEMENT AND SERVICES
Improvements and Services Authorized by the 1972 Act
As generally defined by the Landscaping and Lighting Act of 1972 and applicable to this
District, the improvements and services and associated assessments may include but are
not limited to some or all of the following:
• The installation or construction of public lighting facilities;
• The installation or construction of any facilities which are appurtenant to any of the
foregoing or which are necessary or convenient for the maintenance or servicing thereof,
including, but not limited to, grading, clearing, removal of debris, the installation or
construction of curbs, gutters, walls, sidewalks, paving, or electrical facilities;
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• The acquisition of any existing improvement otherwise authorized pursuant to the Act;
• The maintenance or servicing, of any of the foregoing including the furnishing of services
and materials for the ordinary and usual maintenance, operation, and servicing of any
improvement including but not limited to:
> Repair, removal, or replacement of all or any part of any improvements;
> The cleaning, sandblasting, and painting of improvements to remove or cover graffiti;
> Electric current or other illuminating agent for any public lighting facilities;
• The collection and accumulation of funds as reserves for the purpose of ensuing
appropriate cash flow for operational activities and long -term maintenance expenses.
• Incidental expenses associated with the improvements including, but not limited to:
> The cost of preparation of this report, including plans, specifications, estimates,
diagram, and assessment;
➢ The costs of printing, advertising, and the publishing, posting and mailing of notices;
> Compensation payable to the County for collection of assessments;
➢ Compensation of any engineer or attorney employed to render services;
> Any expenses incidental to the issuance of bonds or notes;
➢ Costs associated with the proceedings held for the approval of a new or increased
assessment.
> Any other expenses incidental to the construction, installation, or maintenance and
servicing of the improvements;
District Facilities and Improvements
Detailed maps and descriptions of the location and extent of the District's existing street
lighting improvements are on file in the Office of Public Works Services Department, and by
reference these documents are made part of this Report. The following table provides a
summary of the street light inventory within the City at the time this Report was prepared:
Table 1
City of Arcadia Street Light Inventory
'Edison City Dwned
Street:Lighting -Owned ts hats , 7etel I
District -wide Street Li•hts Arterial Streets 914 543 1,457
District -wide Street Lis hts Local Streets 1,616 865 2,481
"l'o'1alStieiet41 `tits 01) '. 1 ,. - 3;9381
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Approximately sixty -five percent (65 %) of the streetlights within the District are owned and
maintained by Southern California Edison Company. The remaining thirty -five percent (35 %)
of the streetlight facilities are owned by the City and are maintained by the City.
The maintenance and servicing of the Southern California Edison Company -owned
streetlights is furnished by the Southern California Edison Company or by its successors or
assignees. The rates charged by the Edison Company include both the energy (electrical)
and maintenance costs and are regulated and authorized by the Public Utilities Commission
of the State of California. The City Public Works Services Department furnishes the
maintenance and servicing of the City -owned streetlights. The energy for City -owned
streetlights is also provided by Southern California Edison Company and the rate charged to
the City is also regulated and authorized by the Public Utilities Commission.
While the annual cost of providing the Southern California Edison Company -owned
streetlights versus the City -owned streetlights may vary slightly, the difference in annual cost
per Tight is considered negligible and has no bearing on the benefits (general or special)
such lights provide to properties within the District.
The maintenance, operation and servicing of the District lighting improvements generally
includes the furnishing of labor, materials, equipment and electricity for the ordinary and
usual maintenance, operation, and servicing of street lights within the public right -of -ways
and easements dedicated to the City. These activities include but are not limited to:
• Regular maintenance and servicing the street Tight systems including, cleaning,
sandblasting, repainting of poles and equipment to remove or cover graffiti and as
needed prevent corrosion; repair or replacement of lighting standards, bulbs and
fixtures; and furnishing of electric current or other illuminating agent.
• Periodic repair and rehabilitation of the street lighting system including replacement of
old equipment with new or reconditioned equipment; and repair, removal or replacement
of related equipment as required including but not limited to lighting fixtures, poles,
meters, conduits, electrical cable and relocation of street light facilities as necessary
including the purchase and installation of related equipment and facilities.
• Specifically not included in the District budget and the proportional special benefit
assessments is the installation and construction of new street lights and /or conversion of
existing street lights to decorative street lights or electrical system conversions (i.e. 6.0
electrical systems to 120 volt systems). Such projects and expenditures would be
considered Capital Improvement Projects that are beyond the purpose of the
assessments for this District. If such projects are needed or desired, the cost of such
would require funding from other sources including but not limited to an additional
special assessment on the affected properties and /or funds contributed by the City.
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PART II - METHOD OF APPORTIONMENT
Based on the provisions of the 1972 Act and the California Constitution, this section of the
Report summarizes an analysis of the benefits provided by the City's existing street lighting
improvements and services to be provided by the District (both general and special); the
resulting District structure (zones of benefit); the formulas used to calculate each parcel's
proportional special benefit and assessment obligation (including multiplier factor) based on the
entirety of the cost of providing the improvements (method of assessment); and the
establishment of an inflationary formula for such assessments to address anticipated cost
increases due to inflation (assessment range formula).
A. BENEFIT ANALYSIS
The 1972 Act permits the establishment of assessment districts by agencies for the purpose
of providing certain public improvements, which include but are not limited to the
construction, maintenance, operation, and servicing of public street lighting improvements
and appurtenant facilities.
The 1972 Act further requires that the cost of these improvements be levied according to
benefit rather than assessed value:
"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."
In conjunction with the provisions of the 1972 Act, the California Constitution Article XIIID
addresses several key criteria for the levy of assessments, notably:
Article XIIID Section 2d defines District as:
"District means an area determined by an agency to contain all parcels which will
receive a special benefit from a proposed public improvement or property - related
service";
Article XIIID Section 2i defines Special Benefit as:
"Special benefit" means a particular and distinct benefit over and above general benefits
conferred on real property located in the district or to the public at large. General
enhancement of property value does not constitute "special benefit."
Article XIIID Section 4a defines proportional special benefit assessments as:
"An agency which proposes to levy an assessment shall identify all parcels which will
have a special benefit conferred upon them and upon which an assessment will be
imposed. The proportionate special benefit derived by each identified parcel shall be
determined in relationship to the entirety of the capital cost of a public improvement, the
maintenance and operation expenses of a public improvement, or the cost of the
property related service being provided. No assessment shall be imposed on any parcel
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which exceeds the reasonable cost of the proportional special benefit conferred on that
parcel."
The method of apportionment (method of assessment) established herein is based on the
premise that each assessed property receives special benefits from street lighting
improvements and services that are funded by such assessments, and the assessment
obligation for each parcel reflects that parcel's proportional special benefits as compared to
other properties that receive special benefits as outlined in the preceding definitions
established in the 1972 Act and the California Constitution.
To identify and determine the proportional special benefit to each parcel within the District, it
is necessary to consider the entire scope of the improvements provided as well as the
properties that benefit from those improvements. The District's improvements and the
associated costs described in this Report, have been carefully reviewed and have been
identified and allocated based on a benefit rationale and calculations that proportionally
allocate the net cost of only those improvements determined to be of special benefit to
properties within the District.
Zones of Benefit
In an effort to ensure an appropriate allocation of the estimated annual cost to provide the
District improvements based on proportional special benefits, this District will be established
with benefit zones ( "Zones ") as authorized pursuant to Chapter 1 Article 4, Section 22574 of
the 1972 Act:
"The diagram and assessment may classify various areas within an assessment district
into different zones where, 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. A zone shall consist of all territory which will receive substantially the
same degree of benefit from the improvements."
While the California Constitution requires that "The proportionate special benefit derived by
each identified parcel shall be determined in relationship to the entirety of the capital cost of
a public improvement or the maintenance and operation expenses of a public
improvement... "; it is reasonable to conclude that street lighting on arterial streets has been
installed primarily for the purpose of nighttime traffic illumination and circulation, and will
benefit both the community as a whole and the public at large. On the other -hand, local
street lighting improvements are not required in all areas of the City, which is evident in the
absence of street lighting within certain neighborhoods. Therefore, street lighting along non -
arterial streets (local street lights) provides special benefit to properties fronting these streets
and was installed in connection with the development of such properties. However, these
improvements are not mutually exclusive or typically isolated to a particular parcel but are
rather shared and directly affect entire neighborhoods or groups of parcels. The location and
extent of the specific local street light improvements in relationship to those neighborhoods
or groups of parcels immediately adjacent or in close proximity to those improvements must
be considered.
Therefore, as part of this analysis, the District includes two distinct Zones. Zone 1 includes
all parcels that specially benefit from the maintenance of street lighting along arterial streets,
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and Zone 2 includes remaining parcels within the City that specially benefit from
maintenance of street lighting along non - arterial streets (local street lights). The creation of
these two zones requires the apportionment of the total maintenance budget between these
two zones, which necessitates the need to separately analyze each zone's maintenance
costs to determine the portion of each zone's budget (identified in Part III) that is considered
to be general benefit versus special benefit.
While the extent and location of local street lighting improvements in the City has typically
resulted from property development or the specific needs of nearby properties, arterial street
Tight improvements were installed first and foremost to improve the overall safety of the
community and traffic circulation, and are more of an indirect result of property development.
Therefore, a significant portion of the maintenance costs in Zone 1 is considered general benefit
and will not be assessed against parcels within the District.
Based on a report completed by Meyer, Mohaddes Associates, in March 2006, regarding the
City's Transportation Impact Fee Program, it is estimated that the number of vehicular trips
generated by properties within the City account for approximately 57% of the total daily trips on
the City's arterial streets, with 43% being pass- through trips from outside the City. Utilizing this
information as part of the analysis for separating general benefits from special benefits, it is
reasonable to conclude that 43% of the street light improvements and associated costs of the
City's arterial street lights can be identified as general benefit to the public at large. Likewise, it
is reasonable to apply this same 43% trip rationale to the vehicular trips generated by properties
within the City (57% of the total trips) to establish the general benefits associated with trips
generated within the City that are conferred on real property located in the District (43% x 57%
= 24.5 %). Collectively this would suggest that approximately sixty -eight percent 67.5% (43% +
24.5% = 67.5 %) of the maintenance costs in Zone 1 are for general traffic related improvements
along the City's arterial streets, which together improve the overall safety of the community at-
large, and the properties therein and; therefore, are considered to be a general benefit and will
not be assessed.
In reviewing the location and extent of the City's street lighting improvements and the
relationship these improvements have to properties within the District, it has been determined
that local street lights (street lights that are not located on arterial streets) were installed in
connection with the development of nearby properties. As such, these local lighting
improvements have a direct and particular relationship to, and provide special benefit to, the
properties located in close proximity to those street lighting improvements and on those streets.
The special benefit affects these properties in a way that is particular and distinct from its effect
on other parcels and that real property in general and the public at large do not share.
Furthermore, certain areas of the City do not have local street lighting, which provides further
confirmation that local street lighting specially benefits properties in close proximity to such local
street lighting. Therefore, since certain areas of the City forgo the need of local street lighting,
the maintenance costs associated with local street lighting is not considered to be a general
benefit.
The District Budget, incorporated herein under Part III of this Report, provides a summary of
the total estimated cost of providing the street light improvements and the allocation of those
costs as general benefit versus special benefit for each Zone of the District. Details
regarding the location and extent of the street lighting improvements within the District and
the Zones therein are on file in the Office of Public Works Services Department and by
reference these documents are made part of this Report. A diagram showing the exterior
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boundaries of the District and the two Zones therein is attached and incorporated herein
under Part IV (District Diagram) of this Report.
B. ASSESSMENT METHODOLOGY
In order to calculate and identify the proportional special benefit received by each parcel and
their proportionate share of the improvement costs it is necessary to consider not only the
improvements and services to be provided, but the relationship each parcel has to those
improvements as compared to other parcels in the District.
Article XIIID Section 4a reads in part:
"...The proportionate special benefit derived by each identified parcel shall be determined
in relationship to the entirety of the capital cost of a public improvement or the
maintenance and operation expenses of a public improvement or for the cost of the
property related service being provided. No assessment shall be imposed on any parcel
which exceeds the reasonable cost of the proportional special benefit conferred on that
parcel."
Street lighting, like most public improvements, provides varying degrees of benefit (whether
they be general or special) based largely on the extent of such improvements, the location of
the improvements in relationship to the properties, the specific use and size of each property,
and the reason or need for such improvements as it relates to individual properties. In this
District these issues are each considered in determining the proportional special benefit to each
parcel by the use of benefit zones, the separation of general benefit and special benefit, and
County land use designations. The specific use and size of each property is accounted for to
reflect each parcel's need for such improvements and its reasonable cost of the proportional
special benefit as compared to other properties that benefit from those improvements.
Therefore, an equivalent benefit unit methodology is utilized to assess properties accordingly.
Equivalent Benefit Units
In addition to the use of Zones, the method of apportionment established for this District to
reflect the proportional special benefit of each parcel utilizes a weighted methodology of
apportionment typically referred to as an Equivalent Benefit Unit (EBU) methodology. This
method of apportionment establishes the typical detached single - family home site as the
basic unit of assessment. A single - family residential unit is assigned one (1.0) Equivalent
Benefit Unit (EBU) and other property types (land uses) are proportionately weighted
(weighted EBU) based on a benefit formula that equates each property's specific
characteristics and special benefits to that of the single - family residential unit. This
proportional weighting may be based on several considerations that may include, but are not
limited to: the type of development (land use), development- status (developed versus
undeveloped), size of the property (acreage or units), vehicular trip generation, street
frontage, densities or other property related factors including any development restrictions or
limitations; as well as the density of lighting associated with each property (addressed
through the application of a benefit multiplier factor which is discussed in the next section).
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For the improvements and assessments outlined in this Report, it has been determined that
the most appropriate proportional special benefit calculation for each parcel is reasonably
determined by three basic property characteristics:
• Land use — Commercial /Industrial Use; Residential Use, Institutional Use, Vacant Land
(Undeveloped Property), Public Property etc.;
• Property Size — Acreage for non - residential properties; Units for residential properties.
Property size (acreage or units) provides a definable and comparative representation of
each parcel's proportional special benefit not only to similar types of properties but to
other properties as well. The size of a property provides an appropriate and overall
reflection of numerous considerations associated with each parcel's special benefits
including vehicular trip generation, average street frontage and development densities.
• Lighting Density —The amount of street lighting within the City is not uniform and varies
from one area to the next, ranging from a standard level of street lighting to no street
lighting in certain neighborhoods of the City. To account for this varying level of street
lighting a benefit multiplier factor is applied, as discussed in the next section of this
report entitled "Benefit Multiplier Factor."
The following outlines the special benefits and equivalent benefit unit calculations to be
applied to each of the various land use classifications identified for this District to establish
each parcel's proportional special benefit compared to other parcels within each respective
Zone of the District:
Single - Family Residential Property — This land use is defined as a fully subdivided
residential home site with a single residential unit developed on the property. The
special benefits that local street lighting provides to such properties include, but are not
limited to:
• Direct and /or ambient lighting of the property and the immediate area (street and
sidewalk) providing improved nighttime visibility and safety;
• Reduction in property - related crimes (especially vandalism) commonly associated
with poorly lighted areas; and
• Improved nighttime ingress and egress to the property.
For purposes of establishing the proportional special benefits and equivalent benefit
units for other land uses in this District, the single - family residential land use is
designated as the basic unit of assessment and shall be assigned 1.000 EBU per parcel
(unit).
Multi - Family Residential & Mixed Use Property — This land use is defined as a fully
subdivided residential parcel that has more than one residential unit developed on the
parcel. (This land use includes apartments, duplexes, triplexes, etc., but does not
generally include condominiums, town - homes). This land use designation also includes
properties identified by the County Assessor's Office as mixed use property for which
there is more than one residential unit (known number of residential units) associated
with the property and for which the parcel's primary use is residential, but may also
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include a commercial component or unit associated with that property. The special
benefits that local street lighting provides to such properties include, but are not limited
to:
• Direct and /or ambient lighting of the property and the immediate area (street and
sidewalk) providing improved nighttime visibility and safety;
• Reduction in property- related crimes (especially vandalism) commonly associated
with poorly lighted areas; and
• Improved nighttime ingress and egress to the property.
Although multi - family residential properties receive similar special benefits to that of
single- family residential property and an appropriate and comparative calculation of
proportional special benefits is reasonably reflected by the parcel's total number of
residential units, it would not be reasonable to conclude that on a per unit basis, the
benefits are equal. Studies have consistently shown that multi - family units impact public
infrastructure at reduced levels compared to a single - family residence, which is reflective
of their reduced structure size, trip generation and need for various public improvements.
Furthermore, as the density (number of units per parcel) increase, the average distance
from the street light improvements tends to increase and the number of vehicular trips
generated tends to decline because the population density per unit tends to decrease
(largely because of reduced unit sizes). Based on these considerations, it is reasonable
to conclude that the actual number of street lights per unit is Tess than that of a single -
family residential property and appropriate weighting of the proportional special benefit
per unit for multi - family residential properties as compared to a single - family residential
is best represented by the following sliding scale: 0.750 EBU per unit for the first 5 units;
plus 0.625 EBU per unit for units 6 through 25; plus 0.500 EBU per unit for units 26
through 50; plus 0.375 EBU per unit for units 51 through 100; plus 0.250 EBU per unit
for units 101 or above.
CondominiumITown -home Property — This land use is defined as a fully subdivided
residential condominium or town -home parcel that typically has one residential unit
associated with each Assessor's Parcel Number, but is part of a multi -unit development
for which each condominium or town -home parcel shares or has common interest
(common area) with the other residential parcels in that development. The special
benefits that local street lighting provides to such properties include, but are not limited
to:
• Direct and /or ambient lighting of the property and the immediate area (street and
sidewalk) providing improved nighttime visibility and safety;
• Reduction in property - related crimes (especially vandalism) commonly associated
with poorly lighted areas; and
• Improved nighttime ingress and egress to the property.
The development attributes of condominiums and town -homes tend to be a blend of the
single- family residential and multi - family residential properties. Like multi - family
residential properties, individual condominium and town -home units (individual parcels)
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within such developments may not have actual street frontage where the local street
light improvements are located, but rather the common area lot which they share has
street frontage. (In most cases, each residential unit fronts a private road or driveway
that directly accesses the street where the local street Tight improvements are located).
Because condominium and town -home properties represent individual residential units
that are privately owned, like single - family residential properties these properties tend to
be owner occupied with relatively fewer vacancies per unit than multi - family residential
properties, which in turn represents greater average trip generation per unit than multi-
family residential properties. However, because this property type usually has a much
higher development density (greater number of units per acre) than single - family
residential properties the actual number of street lights per unit is clearly less than that of
a single - family residential property.
In consideration of the special benefits associated with these properties and the
development characteristics discussed above, it has been determined that an
appropriate allocation of special benefit for condominiums, town -homes and similar
residential properties is best represented by an assignment of 0.750 EBU per unit.
(Because these parcels typically represent a single residential unit or small group of
units that are each privately owned, no adjustment for multiple units is applied to this
land use as it is for multi - family residential properties).
Developed Commercial /Industrial Property — This and use is defined as a
developed property with structures (buildings) that is used or may be used for
commercial purposes, whether the structures are occupied or not. This land use does
not include parcels for which the primary use of the property is considered residential or
Hotels and Motels (transient residential). This land use classification includes most types
of commercial enterprises including but not limited to commercial retail; food services;
banks; shopping centers; recreational facilities; office buildings and professional
buildings, as well as industrial properties including service centers; warehousing and
manufacturing. This land use classification also includes any parcel that may incorporate
a single residential unit, but is also used in whole or in part for commercial purposes.
The special benefits that local street lighting provides to such properties include:
• Direct and /or ambient lighting of the property and the immediate area (street and
sidewalk) providing improved nighttime visibility and safety;
• Reduction in property- related crimes (especially vandalism) commonly associated
with poorly lighted areas;
• Improved nighttime ingress and egress to the property;
• Increased accessibility and /or hours of operation that result from adequate nighttime
lighting on the streets near or adjacent to the property; and
• Greater nighttime visibility of the property and associated business with the property.
The presence of local street lighting or the lack thereof has a direct and distinct impact
on commercial /industrial properties and the businesses associated with those
properties. Utilizing trip generation data outlined by the Institute of Transportation
Engineers Informational Report, Seventh Edition; commercial /industrial properties
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generate on average approximately four (4) times the daily vehicular trips per acre
generated by a typical single - family residential property (9.57 trips per single - family
residential unit compared to 42.32 trips per acre for commercial properties). While the
actual daily trips generated by a particular commercial /industrial property may be greater
or Tess than this average, it does provide a reasonable indicator of the proportionality of
the special benefits associated with local street lighting for such properties. In support of
this finding, an analysis of development densities in the City indicates that on average,
single- family and condominium developments yield approximately 4.06 residential units
per acre.
Although the preceding evaluations suggest that the direct proportional special benefits
to commercial /industrial properties is reasonably reflected by an apportionment of 4.000
EBU per acre, because most commercial /industrial parcels represents a separate and
independent commercial enterprise or business with immediate proximity to local street
lighting, it has been determined that the proportional special benefit for any individual
commercial or industrial parcel is at least equal to that of a single - family residential
property. Therefore, a commercial /industrial parcel that is less than one - quarter of an
acre in size shall be assigned 1.000 EBU (minimum EBU). Likewise, it is reasonable to
conclude that there is a limit to the proportional special benefit that any single parcel
receives from local street lights (maximum EBU). In an analysis of the average street
frontage and number of lights per acre for various land use classifications, it has been
determined that commercial /industrial parcels shall not be assessed for any acreage
greater than ten (10.00) acres, which sets the maximum EBU at 40.000 EBU for this
and use classification.
Developed Hotel /Motel Property — Although Hotel /Motel Properties are certainly
viewed as a commercial enterprise, these properties have more significant nighttime
use and traffic generation than other commercial /industrial properties that results from
their transient residential activities. The special benefits that local street lighting provides
to such properties include:
• Direct and /or ambient lighting of the property and the immediate area (street and
sidewalk) providing improved nighttime visibility and safety;
• Reduction in property- related crimes (especially vandalism) commonly associated
with poorly lighted areas;
• Improved nighttime ingress and egress to the property;
• Increased use of the property that result from adequate nighttime lighting
immediately adjacent to or near the property which is essential to the extended
nighttime operation associated with these properties; and
• Greater nighttime visibility of the property that improves potential customer attraction
thereby increasing business activity and use of the property.
The presence of local street lighting or the lack thereof can have a direct and significant
impact on hotel and motel properties because of their heightened nighttime sue of the
property. To reflect this increased proportional special benefit resulting from higher
nighttime use and need for local street lighting as compared to other
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commercial /industrial properties, the proportional special benefits and assessments for
this land use classification shall be based on 6.000 EBU per acre. As with
commercial /industrial properties, minimum and maximum acreage limits shall be applied
in calculating each parcel's individual assessment. These acreage limits result in a
minimum Equivalent Benefit Unit of 1.500 EBU for parcels Tess than one - quarter of an
acre and a maximum Equivalent Benefit Unit of 60.000 EBU for parcels greater than ten
acres.
Developed Institutional Property — This land use is defined as developed private
properties used for the purposes of public related services or activities, including but not
limited to Colleges, Private Schools, Places of Worship, Day Care Centers, Fraternal
Organizations, Hospitals, Convalescent or Retirement Homes, or other similar public
service or assembly type properties. The special benefits that local street lighting
provides to such properties include:
• Direct and /or ambient lighting of the property and the immediate area (street and
sidewalk) providing improved nighttime visibility and safety;
• Reduction in property - related crimes (especially vandalism) commonly associated
with poorly lighted areas; and
• Improved nighttime ingress and egress to the property.
While properties in this land use classification are generally considered non - residential
properties, it has been determined that this land use classification clearly receives less
special benefit from local street lighting than commercial /industrial properties based on
several considerations: they represent businesses /operations that provide public related
or community services (educational, medical care, religious etc.); they are generally non-
profit organizations; and they have significantly less nighttime use and associated trip
generation. Based on the special benefits that local street lighting provides to such
properties and in consideration of their limited nighttime use, the Equivalent Benefit Units
applied to these properties shall be based on 2.000 EBU per acre with the same
minimum and maximum acreage limits that are applied to other acreage -based
properties. These limits result in a minimum Equivalent Benefit Unit of 0.500 EBU for
parcels Tess than one - quarter of an acre and a maximum Equivalent Benefit Unit of
20.000 EBU for parcels greater than ten acres.
Developed Public Property — This land use is defined as developed public or
government owned property used for public related services or activities, including but
not limited to city facilities including parks, community centers, fire and police stations,
and city offices; county or state offices and facilities; federal, state or county court
facilities; US postal service facilities; public schools; public utility facilities or offices; or
other similar developed public properties. The special benefits that local street lighting
provides to such properties include:
• Direct and /or ambient lighting of the property and the immediate area (street and
sidewalk) providing improved nighttime visibility and safety;
• Reduction in property- related crimes (especially vandalism) commonly associated
with poorly lighted areas; and
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• Improved nighttime ingress and egress to the property.
While many of these properties have the potential to be converted or utilized as
commercial or other non - residential enterprises, their purpose and function is specifically
for public related services and activities and they generally have no or limited nighttime
use and trip generation, which is similar to Institutional properties. Based on the special
benefits that local street lighting provides to such properties and in consideration of their
limited nighttime use, the Equivalent Benefit Units applied to these properties shall be
based on 2.000 EBU per acre with the same minimum and maximum acreage limits that
are applied to other acreage -based properties. These limits result in a minimum
Equivalent Benefit Unit of 0.500 EBU for parcels less than one - quarter of an acre and a
maximum Equivalent Benefit Unit of 20.000 EBU for parcels greater than ten acres.
The County Tax Collector's Office typically identifies these properties as "Non- Taxable"
and does not generate tax bills for these properties and as a matter of practical
application, the calculated special benefit and proposed assessment obligation for such
properties cannot be collected through the secured tax roll in the same manner as other
District assessments. Therefore, the only other alternative to the City is the option to
direct bill these properties; otherwise, the total assessment amount applied to these
properties would not be recovered and would be lost revenue. In any case, the total
amount of maintenance cost allocated to these properties is directly related to special
benefit received by these properties and may not be reapportioned to any other parcel(s)
within the District.
Parking Lot/Limited Use Property — This land use classification is applied to
developed privately owned properties that the City considers not to be fully developed
commercial /industrial, institutional or residential properties. This land use classification is
typically applied to parcels that are identified as parking lots with limited or no buildings;
but may also identify parcels that have limited or restricted non - residential use where the
typical commercial /industrial or institutional classification is not applicable or appropriate.
The special benefits that local street lighting provides to such properties include:
• Direct and /or ambient lighting of the property and the immediate area (street and
sidewalk) providing improved nighttime visibility and safety;
• Reduction in property - related crimes (dumping, graffiti, vandalism and loitering)
commonly associated with poorly lighted areas;
• Improved nighttime ingress and egress to the property; and
• Potential increased use and trip generation that result from adequate nighttime
lighting which promotes extended hours of operation.
Based on these special benefits and in consideration of use and need for local street
lighting, the Equivalent Benefit Units applied to these properties shall be based on 1.000
EBU per acre with the same minimum and maximum acreage limits that are applied to
other acreage -based properties. These limits result in a minimum Equivalent Benefit Unit
of 0.250 EBU for parcels less than one - quarter of an acre and a maximum Equivalent
Benefit Unit of 10.000 EBU for parcels greater than ten acres.
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Vacant Property — This land use is defined as property that has been identified as
undeveloped, but has reasonable development potential (Few or no development
restrictions). The special benefits that local street lighting provides to such properties
include:
• Direct and /or ambient lighting of the property and the immediate area (street and
sidewalk) providing improved nighttime visibility and safety; and
• Reduction in property - related crimes (dumping, graffiti, vandalism and loitering)
commonly associated with poorly lighted areas.
In an evaluation of the special benefits associated this land use as compared to that of
developed properties it becomes evident that the proportional special benefits
associated with vacant property are clearly less than those associated with developed
properties. Although vacant properties derive special benefits from local street lighting,
these special benefits are limited to the land (lot) itself. Conversely, approximately half of
the direct and immediate special benefits for developed properties are related to the
daily use or potential use of that property (specifically nighttime use). Based on these
special benefit considerations and the direct advantages of local street lighting, the
Equivalent Benefit Units applied to these properties shall be based on 0.500 EBU per
acre with the same minimum and maximum acreage limits that are applied to other
acreage -based properties. These limits result in a minimum Equivalent Benefit Unit of
0.125 EBU for parcels less than one - quarter of an acre and a maximum Equivalent
Benefit Unit of 5.000 EBU for parcels greater than ten acres.
Exempt Property (Parcel) — This land use identifies parcels where, for various
reasons, it has been determined that the parcel does not and will not receive special
benefits from street lighting improvements. This land use classification may include but
is not limited to:
• Lots or parcels identified as public streets and other roadways;
• Dedicated public easements including open space areas, utility rights -of -way,
greenbelts, parkways, or other publicly -owned or utility -owned land that serves the
community or general public and are not considered or classified as developed
public properties; and
• Parcels of land that are privately owned, but cannot be developed independently
from an adjacent property or is part of a shared interest with other properties, such
as common areas, sliver parcels, bifurcated lots or properties with very restrictive
potential or use.
Because these properties either provide a public service that is comparable to street
lighting or they are dependent on another property or development, these types of
parcels have no direct need for street lighting and are considered to receive no special
benefits Therefore these parcel shall be exempt from assessment and are assigned
0.0000 EBU. However, these properties shall be reviewed annually by the assessment
engineer to confirm the parcel's use.
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Special Case Property — In many districts where multiple land use classifications are
involved, there may be one or more properties where the standard land use
classifications do not accurately identify the use and special benefits received from the
improvements, or there may be factors related to that particular parcel that should be
noted for review in subsequent fiscal years. The following are some examples of
properties that may be classified as Special Case properties:
• Example 1: A parcel may be identified as a Vacant Property, however only a small
percentage of the parcel's total acreage can actually be developed. In this case, an
appropriate calculation would be based on the net acreage that can be utilized rather
than the gross acreage of the parcel. Therefore the parcel is identified as a Special
Case so that each year the parcel's proportional special benefit and assessment is
accurately addressed utilizing the property's net acreage rather than gross acreage.
• Example 2: The use of a particular property and its proportional special benefit is not
in question, but there is some characteristic or issue regarding the property that
should be noted or reviewed in future years.
• Example 3: The most common reason for identifying a parcel as a Special Case is
usually related to development. A property may be identified by the County as
Vacant land, but the property is either being developed or has already been
developed. Another example would be a property that would normally be identified
as Vacant Land, but is being treated as Exempt Property because due to current and
temporary development restrictions that will likely change in the future. In this case,
this designation serves as a prompt to review the status of that property each year,
and if and when the status of that property changes, the land use designation can be
appropriately changed.
Therefore the Equivalent Benefit Units assigned to Special Case Properties will vary
depending on the circumstances and reasons for treating each particular property as a
Special Case. The Equivalent Benefit Unit(s) assigned to each such parcel may be based
on adjusted acreage, units or a combination of those factors. The City and /or the
assessment engineer tasked with the administration of the District shall annually review
each parcel designated as a Special Case Property and based on that review shall make
appropriate adjustments to that property's and use and Equivalent Benefit Unit assignment
as warranted.
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The following is a summary of property types and the Equivalent Benefit Unit assignments
described in the preceding discussion of Equivalent Benefit Units.
Table 2:
Equivalent Benefit Unit Assignments
Land Use Benefit Unit 'Calculations
Single Family Residential Property 1.000 per unit
0.750 per unit (units 1 -5)
0.625 per unit (units 6 -25)
0.500 per unit (units 26 -50)
0.375 per unit (units 51 -100)
Multi - Family Residential & Mixed Use Property 0.250 per unit (units greater than 100)
Condominium/Town -home Property 0.750 per unit
Developed Commercial /Industrial Property 4.000 per acre (minimum 1.000 EBU; maximum 40.000 EBU)
Developed Hotel /Motel Property 6.000 per acre (minimum 1.500 EBU; maximum 60.000 EBU)
Developed Institutional Property 2.000 per acre (minimum 0.500 EBU; maximum 20.000 EBU)
Developed Public Property 2.000 per acre (minimum 0.500 EBU; maximum 20.000 EBU)
Parking Lot/Limited Use Property 1.000 per acre (minimum 0.250 EBU; maximum 10.000 EBU)
Vacant Property 0.500 per acre (minimum 0.125 EBU; maximum 5.000 EBU)
Exempt Property 0.000 per parcel
Special Case Property varied based on circumstances associated with each parcel
Benefit Multiplier Factor
In addition to the initial assignment of EBUs based on a parcel's land use, number of units, and
acreage, a Benefit Multiplier Factor is also employed to account for the varying density levels of
street lighting within the City, which ranges from a standard level of street lighting to no street
lighting in certain neighborhoods of the City. In addition, the use of a Benefit Multiplier Factor
ensures that the differentiation in lighting density is captured as part of the special benefit
findings for each parcel. A Benefit Multiplier Factor shall be applied to each parcel's EBU
assignment to calculate the final net number of EBUs that will be used to determine the
Maximum Assessment Rate per Zone, and each parcel's unique assessment. The following
provides a description of the three different Benefit Multiplier Factors of 1.0, 0.20, and 0.00:
Benefit Multiplier Factor = 1.0
Parcels within the District that receive direct special benefits from local street light
improvements that were installed in connection with the development of the parcel or would
otherwise have been required or necessary for the development or future development of
such property to its full and best use; and the overall proximity and spacing of local street
lighting in the area is consistent with the City's typical density and spacing standards.
Parcels with a Benefit Multiplier Factor equal to 1.0 may include, but is not limited to:
• Parcels that are within 200 feet of a street light.
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• Parcels that are part of a single - family residential subdivision (tract) in which the average
distances from a street light is Tess than 200 feet;
• Parcels that are part of a residential subdivision other than a single - family residential
subdivision (i.e. condominium projects, apartments or other residential properties) in
which the street frontage for the development (common area lot or actual parcel) is
within 200 feet of a street Tight.
• Non - residential properties (parcels or overall developments) that are within 200 feet of a
street light on a street that is adjacent to, used, or could be used to access the property.
These properties include both developed and undeveloped properties.
Benefit Multiplier Factor = 0.20
Parcels within the District that receive direct special benefits from local street light
improvements that were installed in connection with the development of the parcel or were
installed specifically for the properties in that area, but the overall density of street lighting is
approximately 20% of the standard lighting density, when compared to the lighting density of
parcels with a benefit multiplier factor equal to 1.0. Therefore, the Benefit Multiplier Factor
for these parcels equals 0.20. Parcels with a Benefit Multiplier Factor equal to 0.20 may
include, but is not limited to:
• Parcels that are part of a single - family residential subdivision (tract) in which the average
distances from a street light is greater than 200 feet, but there are street lights located
along the street that the parcel fronts or along adjacent streets within the development
(possibly lights on the perimeter of the development). (Note: parcels that are within such
subdivisions that may be directly adjacent to or in closer proximity to a specific street
light shall be assessed the same as other parcels in that subdivision);
• Parcels that are part of a residential development other than a single - family residential
subdivision (i.e. condominium projects, apartments or similar residential properties) in
which the street frontage for the development (common area lot or actual parcel) is
within 400 feet of a street light, but more than the 200 feet established for Zone 01.
• Non - residential properties (parcels or overall developments) that are within 400 feet of a
street light on a street that is adjacent to, used, or could be used to access the property.
These properties include both developed and undeveloped properties.
Benefit Multiplier Factor = 0.00
Parcels within the District that have limited or no local street light improvements within their
immediate proximity shall have a Benefit Multiplier Factor equal to 0.00 applied to their EBU
assignment. Therefore, these properties shall not be assessed and, as part of the notice and
ballot proceedings being conducted in connection with the formation of the District, the
ballots for these properties shall reflect a zero ($0.00) assessment amount.
2011/2012 Arcadia Citywide Lighting District No. 1 Page 19
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C. ASSESSMENT RANGE FORMULA
Pursuant to the California Constitution Article XIIID, the imposition of any new or increased
assessment requires certain noticing and meeting requirements. However, Proposition 218
Omnibus Implementation Act states that an assessment in not considered an increased
assessment if the assessment does not exceed an assessment formula adopted by the City
in accordance with Article XIIID of the California Constitution.
As part of the District formation and establishment of annual assessments to fund the
ongoing operation, maintenance and servicing of those improvements within the District, an
Assessment Range Formula was developed. The purpose of establishing an Assessment
Range Formula is to provide for reasonable increases and inflationary adjustment that are
inevitably associated with providing such improvements and activities. The Assessment
Range Formula is defined by the following:
The "Maximum Rates" for this District shall be annually adjusted by an amount not to
exceed three percent (3 %) to establish the new Maximum Assessment Rates authorized for
the District each fiscal year. (These new rates may be referred to as Adjusted Maximum
Assessment Rates). This 3% adjustment is based on historical inflationary adjustments and
is slightly less than the average annual percentage change in the Consumer Price Index
(CPI) identified by the U.S. Department of Labor; Bureau of Labor Statistics for "All Urban
Consumers" in the Los Angeles- Riverside - Orange County Area over the past twenty years.
Beginning in the District's second fiscal year (fiscal year 2011/2012) and each fiscal year
thereafter, the Maximum Assessment Rates will be recalculated and new Adjusted
Maximum Assessment Rates will be established for the fiscal year utilizing the Assessment
Range Formula described above. The Adjusted Maximum Assessment Rates shall be
calculated independently of the District's annual budget and proposed assessments. Any
proposed annual assessment (Rate per EBU) less than or equal to the Adjusted Maximum
Assessment Rate for each respective Zone shall not be considered an increased
assessment.
To impose a new or increased assessment other than the annual inflationary adjustment
provided by the preceding Assessment Range Formula, the City must comply with the
provisions of the California Constitution Article XIIID Section 4c, that requires a public
hearing and certain protest procedures including mailed notice of the public hearing and
property owner protest balloting. Property owners, through the balloting process, must
approve such a new or increased assessment before that new or increased assessment
may be imposed.
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PART EII - D STR CT BUDGET
A. BUDGET
The City's street light maintenance budget identifies an estimate of anticipated annual
expenses associated with the ongoing operation, maintenance and servicing of street light
improvements that includes, but is not limited to maintenance of street lights and related
facilities, energy costs and incidental expenses. The City provided the estimated total
annual cost of street Tight maintenance for fiscal year 2011/2012, an inventory of arterial
street lights, and the maintenance costs attributable to arterial street lights. Table 3 provides
the City's street light maintenance budget for fiscal year 2011/2012 and Table 4 provide a
detailed inventory of the arterial street lights within the City of Arcadia as well as the
maintenance cost associated with these arterial street lights.
Table 3
City of Arcadia Street Light Maintenance Budget
Description FY2011/2.012
Salaries & Wa•es $246,135
Sus 'lies 21,310
Contract Services 156,000
Vehicle Rental 12,000
Electric 656,030
Vehicle Maintenance 7,020
Total Budget $1,098495
Table 4
City of Arcadia Arterial Street Light Maintenance Budget
Number rf Number of City
Arterial Street Edison Lights :Lights Total
Baldwin 177 107 $40,557
Colorado 20 6 3,713
Duarte 122 0 17,423
Foothill 76 17 13,281
Huntin• ton 52 237 99,791
Las Tunas 46 62 25,897
Live Oak 10 37 16,229
Lower Azusa Rd 12 0 3,645
Michillinda 51 16 20,350
Peck 14 0 4,252
Santa Anita 270 13 40,415
Second 19 0 5,771
Sunset 40 16 17,009
• 5 32 17,665
Total 914 543 $325,998
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Financial Services
The budget for the District outlines the overall estimated annual cost to provide the District
improvements per Zone, that portion of the costs that are considered to be general benefit
and special benefit for each Zone, and the additional funding support from the City to
establish the proposed initial maximum assessment rates to be applied to the various
parcels within each Zone.
The District will only partially fund the operation, maintenance and servicing of lighting
improvements throughout the City that provide special benefits to properties within the City.
The total annual street lighting maintenance budget of the City is $1,098,495, of which,
$878,446 has been determined to specially benefit properties within the District based on
the assessment methodology. However, the District is being established to fund only a
portion of this amount equal to $429,212. As a matter of policy, the City will contribute the
remaining $449,235 from the general fund and other revenue sources. Therefore, the City's
contribution will not only reduce the assessments against the District's affected parcels, but
it will further ensure that property owners are not assessed for more than their proportional
special benefit.
Table 5
City of Arcadia Citywide Lighting District No. 1
Maintenance Budget
Zone 1 Zone2
Total Arterial Local
Arcadia Citywide.Lighting.DistrictNo.1 Budget ,Lights .Lights,
Arterial Lights $325,998 $325,998 $0
Local Street Light Improvements 720,497 0 720,497
Annual Maintenance Budget $1,046,495 $325,998 $720,497
City Contribution for General Benefit (67,5% of Primary) (220,049) (220,049) 0
Annual Maintenance Budget Less General Benefit $826,446 $105,949 $720,497
Administration $52,000 $13,530 $38,470
City Contribution for Special Benefit Reduction 449,235 47,500 401,735
BALANCE TO LEVY $429,212 $71,980 $357,232
Total Parcels 16,600 2,452 14,148
Parcels Levied 14,656 2,405 12,251
Total EBU Levied 16,452.69 4,197.38 12,255.31
Maximum Rates $17.23 $29.29
Applied Rates $17.15 $29.15
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B. PARCEL ASSESSMENT CALCULATION
Pursuant to the provisions of the California Constitution, the proportionate special benefit
derived by each parcel within the District and its corresponding assessment obligation shall
be determined in relationship to the entirety of the capital cost of a public improvement or
the maintenance and operation expenses of a public improvement.
The following formulas are used to calculate each parcel's Levy Amount (proportional
assessment obligation):
Step 1: Based collectively on the preceding discussion and findings, the estimated
annual cost to provide the various District improvements have been allocated to each Zone
and separated between general benefit and special benefit. Those improvement costs
determined to be of general benefit shall not be assessed to properties within each Zone of
the District and these costs are deducted from the total budget to establish the improvement
costs determined to be of special benefit.
Total Zone Budget — General Benefit Costs = Total Zone Special Benefit Costs
Step 2: The Total Zone Budget minus any additional contributions from the City or other
revenue sources establishes the "Balance to Levy" for that Zone. This Balance to Levy
amount is the proportionately allocated to each parcel within the Zone based on their
calculated EBU.
Total Zone Budget — Additional City Contribution = Balance to Levy (Zone)
Step 3: Each parcel's proportional special benefit is calculated based on the Equivalent
Benefit Unit rationale previously discussed:
Parcel's Land Use Benefit x (Acreage or Units) x Benefit Multiplier Factor = Parcel's EBU
Step 4: The total number of Equivalent Benefit Units for the District and each Zone
therein is determined by the sum of all individual EBU(s) applied to parcels that receive a
special benefit from the improvements. An assessment amount per EBU (Assessment Rate)
for each Zone is established by taking the Balance to Levy in that Zone, and dividing that
amount by the total number of EBU(s) for that Zone.
Balance to Levy/ Total EBU = Maximum Assessment Rate per EBU (per Zone)
Step 5: This Assessment Rate is then applied back to each parcel's individual EBU to
determine the parcel's proportionate benefit and assessment obligation.
Maximum Assessment Rate per EBU x Parcel's EBU = Parcel's Assessment
2011/2012 Arcadia Citywide Lighting District No. 1 Page 23
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PART IV - DISTRICT DIAGRAM
The parcels within the District consist of the lots, parcels and subdivisions of land within the
City. The District Diagram identifies the boundaries of the District and the Zones therein, and is
based on the Los Angeles County Assessor's Maps, the Los Angeles County Assessor's
secured roll information and the street lighting improvements that existed at the time this Report
was prepared. The combination of this Diagram and the Assessment Roll outlined in Part V of
this Report; collectively constitute the District's Assessment Diagram.
A copy of the District Diagram is provided on the following page. A full size copy of this diagram
is on file in the Office of Public Works Services Department, and by reference this diagram is
made part of this Report.
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ASSESSMENT DIAGRAM FOR
ARCADIA CITYWIDE LIGHTING DISTRICT NO. 1
CITY OF ARCADIA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA
Arcadia Citywide Lighting District No. 1
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2011/2012 Arcadia Citywide Lighting District No. 1 Page 25
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PART V - ASSESSMENT ROLL
Parcel identification for each lot or parcel within the District is based on the District Diagram
presented herein and available parcel maps and property data from the Los Angeles County
Assessor's Office at the time this Report was prepared. A summary of the parcels to be
assessed within this District along with the associated assessment amounts are provided
herein. The actual assessment roll listing each of the parcels to be assessed within this District
along with their respective assessment amounts (to be balloted) have been provided to the City
Clerk under a separate cover due to the voluminous number of properties to be assessed.
If any parcel submitted for collection is identified by the County Auditor /Controller to be an
invalid parcel number for the fiscal year, a corrected parcel number and /or new parcel numbers
will be identified and resubmitted to the County Auditor /Controller. The assessment amount to
be levied and collected for the resubmitted parcel or parcels shall be based on the method of
apportionment and assessment rates described in this Report as approved by the City Council
rather than a proportionate share of the original assessment.
The following is a summary of the land use classifications (parcels) and assessment amounts
for the District and each Zone within the District as established by the assessment rates and
method of apportionment previously described.
District -wide
LAND USE 'PARCELS LEVIED FY2011 /12EBUs FY 2011/12, ASSESSMENT
COM 719 1,643.37 $34,139.93
CONDO 3,546 2,630.10 66,439.95
HOT 11 123.30 2,507.89
INS 58 130.92 2,854.57
MFR 859 3,677.37 90,695.28
MIX 9 18.38 333.08
PKG 120 49.01 1,093.68
PUB 10 10.06 271.62
SFR 9,251 8,063.00 228,858.85
SPC 6 87.03 1,537.18
VAC 67 20.15 479.77
GRAND TOTAL 14,656 1164452:69 :$429
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Financial Services
Zone 1
LAND USE PARCELS LEVIED •FY.2011 /12EBUs FY.2011 /12ASSESSMENT
COM 404 1,146.88 $19,667.89
CONDO 1,149 851.55 14,601.21
HOT 6 90.52 1,552.46
INS 33 80.13 1,374.13
MFR 194 1,374.73 23,575.77
MIX 8 16.88 $289.36
PKG 61 27.84 $477.14
PUB 1 1.80 $30.87
SFR 522 514.80 8,828.82
SPC 5 83.31 1,428.75
VAC 22 8.94 153.24
GRAND TOTAL 2,405 4,197.38 $71,979.64
Zone 2
LAND USE PARCELS LEVIED FY.2011 /12_EBUs FY 2011 /12 ASSESSMENT
COM 315 496.49 $14,472.04
CONDO 2,397 1,778.55 51,838.74
HOT 5 32.78 955.43
INS 25 50.79 1,480.44
MFR 665 2,302.65 67,119.51
MIX 1 1.50 43.72
PKG 59 21.16 616.54
PUB 9 8.26 240.75
SFR 8,729 7,548.20 220,030.03
SPC 1 3.72 108.43
VAC 45 11.21 326.53
GRAND TOTAL 12,251 12,255.31 $357,232.16
2011/2012 Arcadia Citywide Lighting District No. 1 Page 27