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HomeMy WebLinkAboutItem 1a - Resolution Nos. 7026 and 7026 Citywide Lighting District No. 1 and Kaitlyn Plo STAFF REPORT Public Works Services Department DATE: July 15, 2014 TO: Honorable Mayor and City Council FROM: Tom Tait, Public Works Services Director By: Maria Lourdes A. Taylor, Senior Management Analyst SUBJECT: ARCADIA CITYWIDE LIGHTING DISTRICT NO. 1 AND KAITLYN PLACE LANDSCAPING AND LIGHTING DISTRICT ASSESSMENTS RESOLUTION NO. 7026 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 2014 -15; AND RESOLUTION NO. 7027 CONFIRMING THE ENGINEER'S REPORT FOR THE LEVY AND COLLECTION OF THE KAITLYN PLACE LANDSCAPING AND LIGHTING DISTRICT AND THE ASSESSMENT DIAGRAM CONNECTED THEREWITH; AND ORDERING THE LEVY AND COLLECTION OF ASSESSMENTS FOR FISCAL YEAR 2014 -15 Recommendation: Find that these Resolutions are exempt under the California Environmental Quality Act; and adopt SUMMARY The Citywide Lighting District No. 1 ( "Lighting District ") and the Kaitlyn Place Landscaping and Lighting District ( "Kaitlyn Place District ") were formed in the City of Arcadia pursuant to the Landscaping and Lighting Act of 1972 and Proposition 218 balloting requirements. These districts were formed for the purpose of partially funding the ongoing operation, maintenance, and servicing of the City's street lighting system, and funding the public landscaping associated with the development of the Kaitlyn Place subdivision. For Fiscal Year 2014 -15, the proposed assessment rate increase for the Citywide Lighting District No. 1 is 2.22 %. The rate adjustment is based on the increase in the Lighting District's Operations budget. The Kaitlyn Place District is assessed on the total annual cost to provide ongoing maintenance of landscaping improvements. There is no rate adjustment proposed for the Kaitlyn Place District, as no increases in the City's maintenance contracts will be required for the coming Fiscal Year. Citywide Street Lighting and Kaitlyn Place Landscaping Assessment Districts July 15, 2014 Page 2 of 6 At the July 1, 2014, City Council meeting, the City Council adopted Resolution Nos. 7020 through 7025, which approved the preliminary Engineer's Report, initiated the proceedings for the annual levy and collection of assessments, and set the public hearing for tonight's City Council Meeting. Pursuant to the Landscaping and Lighting Act of 1972, the purpose of the public hearing is to allow the public an opportunity to provide comment regarding the levy and collection of assessments for each District. Upon conclusion of the public hearing, it is recommended that the City Council adopt Resolution Nos. 7026 and 7027 to confirm the Engineer's Report and order the levy and collection of assessments for Fiscal Year 2014 -15 for the Arcadia Citywide Lighting District No. 1 and Kaitlyn Place Landscaping and Lighting District. Copies of Resolution Nos. 7026 and 7027 are attached. BACKGROUND Citywide Lighting District The City's former Street Lighting District was originally established through the Street Lighting Act of 1919 in the early 1950s and was set to expire on June 30, 2010. This would have resulted in a loss of approximately $420,000 in annual revenue to the City beginning in Fiscal Year 2010 -11. Renewal of the Lighting District could no longer be done through the Street Lighting Act of 1919 because the assessments were based on the value of real property, which Proposition 13 prohibits. Additionally, not all properties within the City were included in the original assessment district, which resulted in an inequity of assessments. To address this issue, in 2009 the City Council directed the formation of a Citywide Lighting District via the Landscaping and Lighting Act of 1972. Under this Act, assessments are based on the special benefit that street lighting provides to properties within the Lighting District. Proposition 218 noticing and balloting requirements were met and on August 3, 2010, the City Council adopted the Engineer's Report for the formation of the Lighting District and approved the levy and collection of assessments beginning in Fiscal Year 2010 -11. The Engineer's Report allows for an annual adjustment to the assessment formula adopted by the City, in accordance with Article XIIID of the California Constitution, to account for reasonable increases in electricity and other costs associated with the ongoing maintenance and operation of street lights in the City. Kaitlyn Place Landscaping and Lighting District The City Council formed the Kaitlyn Place Landscaping and Lighting District in 2009. However, the Kaitlyn Place subdivision was not completed until the early part of 2012 and, as a result, it was determined that it would be prudent to defer assessing the Citywide Street Lighting and Kaitlyn Place Landscaping Assessment Districts July 15, 2014 Page 3 of 6 property owners until Fiscal Year 2013 -14, when more was known about the cost of maintaining the new improvements. The purpose of the Kaitlyn Place District was to fund ongoing operation, maintenance, and servicing of the public improvements associated with the development of the subdivision. Kaitlyn Place is a five -lot subdivision located east of Eighth Avenue, between Camino Grove Avenue and Pamela Place. The property owner /developer was supportive of the formation of the Kaitlyn Place District. The Kaitlyn Place District only includes funding for the ongoing maintenance and servicing of a 600 square foot landscaped area, City trees planted in the public right -of- way, and the annual cost for irrigation. The ongoing maintenance costs associated with street lights on Kaitlyn Place are included in the Citywide Lighting District. DISCUSSION Citywide Lighting District To ensure appropriate allocation of the Citywide Lighting District's annual street lighting, costs are based on proportional special benefits. The assessment methodology for the Lighting District was divided into two (2) zones. • Zone 1 - properties along major thoroughfares (arterial street lights) • Zone 2 - properties in residential neighborhoods (local street lights) Some areas in the City were developed with sparse lighting on their streets; however, they still receive special benefits from their local lights even though their overall lighting density is less than those streets with full lighting. They receive 20% of the standard lighting density and pay 20% of the annual assessment rate. Properties in areas of the City that do not have street lighting will not pay a street lighting assessment fee. In June 2014, the City Council approved the City's Fiscal Year 2014 -15 Operating Budget, which includes a 2.22% increase in the Lighting District's Operating budget. The increase is primarily due to an increase in electricity rates for street lights and increases in wages and benefits. For Fiscal Year 2014 -15, the City's total Street Lighting Budget is $1,205,700, of which, $964,009 (or 80% of the total lighting budget) has been determined to specially benefit properties within the Citywide Lighting District based on the assessment methodology. However, the Citywide Lighting District was established to fund only a portion of this amount equal to 40 %, or $478,549, of the total lighting budget. The City's contribution to the District's assessment not only reduces 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. Citywide Street Lighting and Kaitlyn Place Landscaping Assessment Districts July 15, 2014 Page 4 of 6 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. In light of the fact that the Lighting District Budget increased by 2.22 %, the property owners' proposed assessment rate will only increase by that amount, as opposed to the Lighting District's allowed 3% inflationary adjustment. For the proposed assessment rate, the City will be contributing 60 %, or $727,151, of the total assessment. The assessment rate for a single property owner in Zone 1 (arterials) will increase annually by $0.40 ($18.24 to $18.64); and for a single - family property owner in Zone 2 (local lights), the assessment rate will increase annually by $0.69 ($31.00 to $31.69). Using the single - family property as the baseline for the assessment, the table below shows the annual assessment rate levied in Fiscal Year 2013 -14 and the proposed Fiscal Year 2014 -15 annual assessment rates for Zones 1 and 2: FY 13 -14 FY 14 -15 Change Assessment Rate Assessment Rate' ( +2.22 %) Lighting District Total Budget $1,179,500 $1,205,700 +$26,200 Zone 1 (Arterial Lights) $18.24 $18.64 +$0.60 Sparse Lighting ($3.65) ($3.73) +($0.08) Zone 2 (Local Lights) $31.00 $31.69 +$0.69 Sparse Lighting ($6.20) ($6.34) +($0.14) 'FY 2014 -15 Maximum Assessment Rate for Zone 1 is $18.82; Zone 2 is $32.00 Kaitlyn Place Landscaping and Lighting District The Kaitlyn Place Landscaping and Lighting District expenses were determined to specially benefit the five single - family residential properties within the Kaitlyn Place District. As a result, the City is allowed to assess the entire cost to maintain and operate the Kaitlyn Place District's various landscaping improvements. The ongoing lighting costs for street lights are included in the Citywide Lighting District Assessment. The landscaping maintenance and operations expenses include maintenance and upkeep of approximately 600 square feet of the landscaped parkway (i.e. several types of trees, shrubs, groundcover, and a vine covering the block wall) including utilities and administration costs of the Kaitlyn Place District. Citywide Street Lighting and Kaitlyn Place Landscaping Assessment Districts July 15, 2014 Page 5 of 6 For Fiscal Year 2014 -15, the Kaitlyn Place District's total landscaping maintenance budget is $2,560, which is the same as last fiscal year's budget. As a result, there will be no increase in the assessment rate among the five parcels in this District even though the Kaitlyn Place District is allowed a 3% inflationary adjustment annually. This means that each parcel will be paying $512 for the annual landscaping assessment versus the maximum assessment rate of $771.57 per parcel. Additionally, as part of the Citywide Lighting District, each parcel or property owner will pay the annual lighting assessment of $31.69 for Zone 2 (local lights). Public Comments /Notice Pursuant to the Landscaping and Lighting Act of 1972, notice for the date of the public hearing was published in the local newspaper on June 30, 2014. As of the preparation date of this staff report, the City has not received any opposition to the proposed assessment rate for Fiscal Year 2014 -15. FISCAL IMPACT Fees collected under the Citywide Lighting District No. 1 and Kaitlyn Place Landscaping and Lighting District will help defray the total cost of lighting and landscaping maintenance in the subject areas. A total of $478,549 will be collected under the Citywide Lighting District No. 1 and $2,560 under the Kaitlyn Place District. In neither case would the levy exceed the cost of providing the subject services to the areas nor will the levies exceed the Maximum Assessment Rates allowed. Both levies have been set to ensure that the cost to the property owner does not exceed the special benefit to that property. RECOMMENDATION It is recommended that the City Council find that these Resolutions are exempt under the California Environmental Quality Act (CEQA); and adopt the following Resolutions. a. Resolution No. 7026 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 2014 -15; and Citywide Street Lighting and Kaitlyn Place Landscaping Assessment Districts July 15, 2014 Page 6 of 6 b. Resolution No. 7027 confirming the Engineer's Report for the levy and collection of the Kaitlyn Place Landscaping and Lighting District and the assessment diagram connected therewith; and ordering the levy and collection of assessments for Fiscal Year 2014 -15. Approved: Dominic La77arett6 City Manager Attachments: Engineer's Report — Arcadia Citywide Lighting District No. 1 Engineer's Report — Kaitlyn Place Landscaping and Lighting District Resolution Nos. 7026 and 7027 27368 Via Industria Suite 110 Temecula, G4 92590 T951.587.3500 1 800.755.6864 F 951.587.3510 www.willdan.com / financial 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 2014/2015, 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 ` day of �1 v� , 2014. Willdan Financial Services Assessment Engineer On Behalf of the City of Arcadia By: Susana Medina Project Manager By: z e / Richard Kopecky R. C. E. # 16742 �QROFESS /pkq� k0^ 0 C 16742 -< M E X P OF CA��F TABLE OF CONTENTS 1. INTRODUCTION .................................................................... ..............................1 11. PLANS AND SPECIFI CATIONS ........................................... ............................... 2 A. DESCRIPTION OF THE DISTRICT .................................................... ..............................2 B. DESCRIPTION OF IMPROVEMENT AND SERVICES ...................... ..............................2 111. METHOD OF APPORTIONMENT .......................................... ..............................4 A. BENEFIT ANALYSIS .......................................................................... ..............................5 B. ASSESSMENT METHODOLOGY ...................................................... ..............................7 C. ASSESSMENT RANGE FORMULA .................................................. .............................18 IV. DISTRICT BUDGET .............................................................. .............................18 A. BUDGET ............................................................................................ .............................18 B. PARCEL ASSESSMENT CALCULATION ........................................ .............................20 V. DISTRICT DIAGRAM .......................................................... ............................... 21 VI. ASSESSMENT ROLL ........................................................... .............................23 )WILLDAN Financial Services INTRODUCTIOry 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 MID 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 ") was 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. 2014/2015 Arcadia Citywide Lighting District No. 1 Page 1 of 24 WWILLDAN Financial Services 11. 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 were 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; • 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: 2014/2015 Arcadia Citywide Lighting District No. 1 Page 2 of 24 -V%/WILLDAN Financial Services ➢ 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 iiiiiiiiiiiiiiiiiiiiiEdison- City -Owned Street Lighting _Owned Lights _ Lightsl Total Li hts Total Street Lights Approximately sixty -four percent (64 %) of the streetlights within the District are owned and maintained by Southern California Edison Company. The remaining thirty -six percent (36 %) 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) 2014/2015 Arcadia Citywide Lighting District No. 1 Page 3 of 24 -V%/WILLDAN Financial Services 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 light 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 light 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. 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). 2014/2015 Arcadia Citywide Lighting District No. 1 Page 4 of 24 -V%/WILLDAN Financial Services 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 MID addresses several key criteria for the levy of assessments, notably: Article MID 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 MID 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 MID 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 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 2014/2015 Arcadia Citywide Lighting District No. 1 Page 5 of 24 -V%/WILLDAN Financial Services 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, 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 light 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 2014/2015 Arcadia Citywide Lighting District No. 1 Page 6 of 24 -V%/WILLDAN Financial Services 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 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. " 2014/2015 Arcadia Citywide Lighting District No. 1 Page 7 of 24 -V%/WILLDAN Financial Services 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). 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 2014/2015 Arcadia Citywide Lighting District No. 1 Page 8 of 24 _V%/WILLDAN Financial Services 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 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 2014/2015 Arcadia Citywide Lighting District No. 1 Page 9 of 24 _V%/WILLDAN Financial Services to conclude that the actual number of street lights per unit is less 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. Condominium /Town -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) 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 light 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 land 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 2014/2015 Arcadia Citywide Lighting District No. 1 Page 10 of 24 -V%/WILLDAN Financial Services 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 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 less 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 are reasonably reflected by an apportionment of 4.000 EBU per acre, because most commercial /industrial parcels represent 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 land use classification. Developed Hotel /Motel Property — Although Hotel /Motel Properties are certainly viewed as commercial enterprises, these properties have more significant nighttime use and traffic generation than other commercial /industrial properties that results from their 2014/2015 Arcadia Citywide Lighting District No. 1 Page 11 of 24 -V%/WILLDAN Financial Services 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 use 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 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 less 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 2014/2015 Arcadia Citywide Lighting District No. 1 Page 12 of 24 -V%/WILLDAN Financial Services 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. 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 • 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: 2014/2015 Arcadia Citywide Lighting District No. 1 Page 13 of 24 -V%/WILLDAN Financial Services • 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. 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; 2014/2015 Arcadia Citywide Lighting District No. 1 Page 14 of 24 -V%/WILLDAN Financial Services 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. 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 2014/2015 Arcadia Citywide Lighting District No. 1 Page 15 of 24 _V%/WILLDAN Financial Services appropriate adjustments to that property's land use and Equivalent Benefit Unit assignment as warranted. 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 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: 2014/2015 Arcadia Citywide Lighting District No. 1 Page 16 of 24 Single Family Residential Property 1.000 per unit Multi - Family Residential &Mixed Use Property 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) 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: 2014/2015 Arcadia Citywide Lighting District No. 1 Page 16 of 24 _V%/WILLDAN Financial Services • Parcels that are within 200 feet of a street light. • Parcels that are part of a single - family residential subdivision (tract) in which the average distances from a street light is less 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 light. • 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. 2014/2015 Arcadia Citywide Lighting District No. 1 Page 17 of 24 -V%/WILLDAN Financial Services 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 is 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. IV. DISTRICT 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 light maintenance for fiscal year 2014/2015, an inventory of arterial 2014/2015 Arcadia Citywide Lighting District No. 1 Page 18 of 24 *WILLDAN Financial Services street lights, and the maintenance costs attributable to arterial street lights. Table 3 provides the City's street light maintenance budget for fiscal year 2014/2015 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 Table 4 City of Arcadia Arterial Street Light Maintenance Budget . Salaries & Wages $272,100 Supplies 21,700 Contract Services 150,000 Electric 624,700 Vehicle Maintenance 22,000 City Liability Insurance 24,600 City Administration Services 90,600 Foothill 76 Table 4 City of Arcadia Arterial Street Light Maintenance Budget 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 only partially funds the operation, maintenance improvements throughout the City that provide special benefits to The total annual street lighting maintenance budget of the City and servicing of lighting properties within the City. is $1,205,700, of which, 2014/2015 Arcadia Citywide Lighting District No. 1 Page 19 of 24 . 9 Baldwin 177 107 $44,546.23 Colorado 20 6 4,078.17 Duarte 122 0 19,136.06 Foothill 76 17 14,587.32 Huntington 52 237 109,605.06 Las Tunas 46 62 28,444.22 Live Oak 10 37 17,825.05 Lower Azusa Rd 12 0 4,003.26 Michillinda 51 16 22,351.54 Peck 14 0 4,670.47 Santa Anita 271 15 44,389.37 Second 19 0 6,338.50 Sunset 40 16 18,681.89 Campus 5 32 19,402.94 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 only partially funds the operation, maintenance improvements throughout the City that provide special benefits to The total annual street lighting maintenance budget of the City and servicing of lighting properties within the City. is $1,205,700, of which, 2014/2015 Arcadia Citywide Lighting District No. 1 Page 19 of 24 -V%/WILLDAN Financial Services $964,009 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 $478,549. As a matter of policy, the City will contribute the remaining $485,461 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 *The general benefit contribution applies to Arterial Streetlights only (1) Balance to Levy differs from FY14/15 Assessment Roll due to rounding 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 2014/2015 Arcadia Citywide Lighting District No. 1 Page 20 of 24 Arterial Lights $358,060 $358,060 $0 Local Street Light Improvements 748,440 0 748,440 Annual Maintenance Budget $1,106,500 $358,060 $748,440 Administration $99,200 $1,205,700 $25,811 $383,871 $73,389 $821,829 Total Expense (see table above for breakdown) City Contribution for General Benefit 67.5% of Prima 241,691 241,691 0 Annual Maintenance Budget Less General Benefit $964,009 $142,181 $821,829 City Contribution for Special Benefit Reduction 485,461 59,965 425,496 BALANCE TO LEVY $478,549 $82,216 $396,333 Total Parcels 16,621 2,464 14,157 Parcels Levied 14,767 2,440 12,327 Total EBU Levied 16,917.27 4,410.71 12,506.56 Maximum Rates $18.82 $32.00 Applied Rates $18.64 $31.69 *The general benefit contribution applies to Arterial Streetlights only (1) Balance to Levy differs from FY14/15 Assessment Roll due to rounding 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 2014/2015 Arcadia Citywide Lighting District No. 1 Page 20 of 24 WWILLDAN Financial Services 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 DISTRIC 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. 2014/2015 Arcadia Citywide Lighting District No. 1 Page 21 of 24 A WILLDAN Financial Services 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. ASSESSMENT DIAGRAM CITY OF ARCADIA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA Arcadia Citywide Lighting District No. 1 WILLDAN ! _ _ Financial Services 2014/2015 Arcadia Citywide Lighting District No. 1 Page 22 of 24 WILLDAN Financial Services WASSESSMENT 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 2014/2015 Arcadia Citywide Lighting District No. 1 Page 23 of 24 COM 720 1,652.34 37,241.70 CONDO 3,609 2,677.35 73,546.52 HOT 11 123.29 2,726.08 INS 59 134.97 3,208.91 MFR 848 3,651.75 97,899.62 MIX 9 18.38 362.09 PARKING 1 1.18 22.00 PKG 120 49.01 1,192.95 PUB 76 435.11 11,213.36 SFR 9,253 8,065.80 248,900.11 SPC 7 88.03 1,689.43 VAC 54 20.06 545.82 2014/2015 Arcadia Citywide Lighting District No. 1 Page 23 of 24 WWILLDAN Financial Services Zone 1 Zone 2 2014115 EBUs i- COM 407 1,158.70 $21,598.05 CONDO 1,168 865.80 16,138.51 HOT 6 90.51 1,687.36 INS 33 81.86 1,525.80 MFR 191 1,365.85 25,459.44 MIX 8 16.88 314.55 PARKING 1 1.18 22.00 PKG 60 27.59 514.33 PUB 23 197.33 3,678.31 SFR 521 513.80 9,577.23 SPC 6 84.31 1,571.54 VAC 16 6.90 128.56 GRAND TOTAL i $82,215.68 Zone 2 2014/2015 Arcadia Citywide Lighting District No. 1 Page 24 of 24 2014115 EBUs FY ASSESSMENT COM 313 493.65 15,643.66 CONDO 2,441 1,811.55 57,408.02 HOT 5 32.78 1,038.72 INS 26 53.11 1,683.11 MFR 657 2,285.90 72,440.17 MIX 1 1.50 47.54 PKG 60 21.41 678.62 PUB 53 237.77 7,535.05 SFR 8,732 7,552.00 239,322.88 SPC 1 3.72 117.89 VAC 38 13.17 417.25 12,506.56 $396,332.91 2014/2015 Arcadia Citywide Lighting District No. 1 Page 24 of 24 27368 Via Industria Suite 110 Temecula, G4 92590 T951.587.3500 1 800.755.6864 F 951.587.3510 www.willdan.com / financial ENGINEER'S REPORT AFFIDAVIT Establishment of Annual Assessments for the: Kaitlyn Place Lighting & Landscape District City of Arcadia, County of Los Angeles, State of California This Report describes the Arcadia Kaitlyn Place Landscape and Lighting District including the improvements, budgets, parcels and assessments to be levied for fiscal year 2014/2015, 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 -Vk day of �aLk s, , 2014. Willdan Financial Services Assessment Engineer On Behalf of the City of Arcadia By. .V Susa a Medina Project Manager By: Richard Kopecky R. C. E. # 16742 �QROFESS /p�` C 16742 exP G - 3° ,/5 �F CA��F TABLE OF CONTENTS I. INTRODUCTION .................................................................... ..............................1 11. PLANS AND SPECIFI CATI ONS ........................................... ............................... 2 A. DESCRIPTION OF THE DISTRICT ...................................... ............................... 2 B. DESCRIPTION OF IMPROVEMENT AND SERVICES ......... ............................... 2 Improvements and Services Authorized by the 1972 Act ............. ..............................2 District Facilities and Improvements ............................................... ..............................3 111. ME D OF APPORTIONMENT ......................................... ............................... 4 A. BENEFIT ANALYSIS ............................................................ ............................... 4 B. ASSESSMENT METHODOLOGY ........................................ ............................... 5 Equivalent Benefit Units ................................................................... ..............................5 C. ASSESSMENT RANGE FORMULA ...................................... ..............................6 IV. DISTRICT BUDGET .............................................................. ............................... 8 A. BUDGET ............................................................................... ............................... 8 V. DISTRICT DIAGRAM ............................................................ ............................... 9 VI. ASSESSMENT ROLL ......................................................... ............................... 11 WWILLDAN Financial Services L INTRODUCTION The Kaitlyn Place Landscaping and Lighting District (hereafter referred to as the "District ") was formed in 2009 for the purpose of funding the ongoing operation, maintenance and servicing of various public landscaping and street lighting improvements associated with the development and approval of Final Map No. 69958 that were determined to be of special benefit to the property therein. The City Council formed the District and decided 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 made in compliance with the substantive and procedural requirements of the California State Constitution Article X111D (hereafter referred to as the "California Constitution "). As part of this District formation, the City conducted a property owner protest ballot proceeding for the special benefit assessments in accordance with the provisions of Government Code, Section 53753, and California Constitution, Article XIIID Section 4. In conjunction with the ballot proceeding, the City Council conducted a public hearing to consider public testimonies, comments and written protests regarding the formation of the District and levy of assessments. Upon conclusion of the public hearing, property owner protest ballots were received, opened and tabulated to determine whether majority protest exists (ballots were proportionally weighted based on each parcel's proposed assessment obligation), and by resolution the City Council confirmed the results of the ballot tabulation. No majority protest existed. On December 15, 2009, the City Council, by Resolution No. 6706, 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 2014/2015, 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 2014/2015, 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. 2014/2015 Kaitlyn Place Landscape and Lighting District Page 1 WWILLDAN Financial Services 11. PLANS AND SPECIFICATIONS A. DESCRIPTION OF THE DISTRICT The territory within the District consists of all lots, parcels of land and subdivisions within Final Map No. 69958. An Assessment Diagram incorporated herein outlines the boundaries of the District. This diagram incorporates all lots, parcels and subdivisions of land within the District. 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 associated assessments may include but are not limited to some or all of the following: • The installation or planting of landscaping. • 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; • 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 the 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; 2014/2015 Kaitlyn Place Landscape and Lighting District Page 2 NWILLDAN Financial Services 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 Descriptions of the location and extent of the District's landscaping are on file in the Office of Development Services Department, and by reference these documents are made part of this Report. The following provides a summary of the landscaping improvements maintained by the District and associated with Final Map No. 69958 and upon which the assessments for the District and specifically fiscal year 2014/2015 have been established: • Per Resolution Nos. 6736 & 6737 approved on August 2, 2010 establishing the Citywide Street Lighting Assessment District, all parcels in the City are part of the Citywide Street Lighting Assessment District. Therefore the lighting improvements have been stripped from this report. • Approximately 600 square feet of landscaped parkway (2' x 300') including, but not limited to, five (5) Yew Pine trees, one (1) Crape Myrtle tree, one (1) mature Oak tree, several shrubs, groundcover, and a vine covering the block wall. Plants are irrigated with a multi- station automatic controller. 2014/2015 Kaitlyn Place Landscape and Lighting District Page 3 WWILLDAN Financial Services W. METHOD OF APPORTIONMF Based on the provisions of the 1972 Act and the California Constitution, this section of the Report summarizes an analysis of the benefits the parcels within the District receive from the improvements. The formulas used to calculate each parcel's proportional special benefit and assessment obligation is based on the entirety of the cost to provide 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 landscaping and 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 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 the landscaping and local 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 2014/2015 Kaitlyn Place Landscape and Lighting District Page 4 _V%/WILLDAN Financial Services definitions established in the 1972 Act and the California Constitution. In addition, the improvements and maintenance of such improvements are a requirement for the orderly development and approval of Final Map No. 69958 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 the benefit to affected properties within the District. The improvements provided by this District and for which properties are assessed have been identified as necessary, required and /or desired for the orderly development of the properties within the District to their full potential, consistent with the development's conditions of approval. As such, these improvements were determined during the development entitlement process to be necessary and required of individual property owners for the development of such properties and the ongoing operation, servicing and maintenance of these improvements would be the financial obligation of those properties. In addition, all of the improvements to be maintained by the District specially benefit the properties within the District. 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 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. " Equivalent Benefit Units 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 typically 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. There are five single family residential lots in the District. Therefore, one (1.0) EBU is assigned to each single family residential lot and the costs of services are evenly apportioned to each of the five residential lots. Exempt Property (Parcel) — certain parcels are exempt from the assessment since they do not receive a special benefit from the improvements. Parcels that are exempt may include but are not limited to: • Lots or parcels identified as public streets and other roadways (typically not assigned an APN by the County); 2014/2015 Kaitlyn Place Landscape and Lighting District Page 5 NWILLDAN Financial Services • 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; • 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 development 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 parcels are exempt from assessment and are assigned 0.0000 EBU. However, these properties are reviewed annually by the assessment engineer to confirm the parcel's use and /or development status has not changed. 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. Prior to the passage of Proposition 218 (Now Articles XIIIC and XIIID of the California Constitution), legislative changes in the Brown Act defined a "new or increased assessment" to exclude certain conditions. These conditions included "any assessment that does not exceed an assessment formula or range of assessments previously adopted by the agency or approved by the voters in the area where the assessment is imposed." As part of this District formation and establishment of annual assessments to fund the ongoing operation, maintenance and servicing of those improvements, the assessments submitted to the property owners of record shall include an annual inflationary adjustment referred to as an Assessment Range Formula. 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, thereby reducing the need for additional noticing and mailing procedures simply because of inflationary factors. This Assessment Range Formula is defined by the following: The "Proposed Maximum Rates" for this District as presented in this Report are annually adjusted by three percent (3 %) to establish the new Maximum Assessment Rates authorized for the District each fiscal year. (These new rates are 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 is recalculated and new Adjusted Maximum Assessment Rates are established for the fiscal year utilizing the Assessment Range Formula described above. The Adjusted Maximum Assessment Rates is 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 is not considered an increased assessment. 2014/2015 Kaitlyn Place Landscape and Lighting District Page 6 To impose a new or increased assessment other than the annua provided by the preceding Assessment Range Formula, the Cit y provisions of the California Constitution Article XIIID Section 4c hearing and certain protest procedures including mailed notice of property owner protest balloting. Property owners, through the approve such a new or increased assessment before that new o may be imposed. NWILLDAN Financial Services I inflationary adjustment must comply with the that requires a public the public hearing and balloting process, must r increased assessment 2014/2015 Kaitlyn Place Landscape and Lighting District Page 7 WWILLDAN Financial Services IV. DISTRICT BUDGET A. BUDGET The District budget identifies an estimate of anticipated annual expenses associated with the ongoing operation, maintenance and servicing of landscaping and street light improvements within the District. The Citywide Street Lighting Assessment District contains all parcels in the City. Hence the "Street Lighting Maintenance & Utilities" direct costs have been eliminated from the Kaitlyn Place Landscaping and Lighting District's Budget. The following budget outlines the overall estimated annual cost to provide the District improvements, and the initial maximum assessment rates to be applied in Fiscal Year 2014/2015: Direct Costs Landscape Maintenance $1,810.00 Landscape Utilities $250.00 Streetlight Maintenance $0.0C Streetlight Utilities $0.0C Direct Costs (Subtotal) $2,060.0( Administration Costs $0.00 Direct Administration and Professional Costs $500.00 Administration Costs (Subtotal) $500.00 Collections (Credits) Applied to Levy Resere Fund $0.00 Total Adjustments (Subtotal) $0.00 BALANCE TO LEVY $2,560.0( Total Parcels Ir Parcels Levied Ir Total EBU Levied 5.0( M axi mu m Rates $771.57 Applied Rates $512.00 2014/2015 Kaitlyn Place Landscape & Lighting District Page 8 WWILLDAN Financial Services V. DISTRICT DIAGRAM The parcels within the District consist of the lots, parcels and subdivisions of land within the Final Map No. 69958. The District Diagram identifies the boundaries of the District, and is based on the Los Angeles County Assessor's Maps, the Los Angeles County Assessor's secured roll information. The combination of this Diagram and the Assessment Roll outlined in 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 Development Services Department, and by reference this diagram is made part of this Report. 2014/2015 Kaitlyn Place Landscape & Lighting District Page 9 WWILLDAN Financial Services CITY OF ARCADIA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA ASSESSMENT DIAGRAM FOR KAITLYN PLACE LANDSCAPE & LIGHTING DISTRICT 0.1 0 0.03 0 1 Miles y warty king. Legend LLD 2009 -2 BOUNDARY MAP REF NO. ASSESSORS MAP REF NO. ADDRESS PARCEL HO. 1 SQS Kai[lyn Place 5780 - 023 -086 2 803 Kaitl n Place 5780- 023 -087 3 865 Kaitl n Place 5780.023-088 4 107 Kaftl n Place 5780. 023 -089 5 809 Kaitlyn Place 5780- 023 -0 2014/2015 Kaitlyn Place Landscape &Lighting District Page 10 This map is fur nNnnc* my and shauki nd be us.n kw ipr eodsims. innas Ma cwt Vtx wggx mok.s as aril aRai to anwm uMS is Kcunt*,snoCwnry nukes no npxsMwSOn or wanmnt 90 2014/2015 Kaitlyn Place Landscape &Lighting District Page 10 This map is fur nNnnc* my and shauki nd be us.n kw ipr eodsims. innas Ma cwt Vtx wggx mok.s as aril aRai to anwm uMS is Kcunt*,snoCwnry nukes no npxsMwSOn or wanmnt WWILLDAN Financial Services WASSESSMENT 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. The parcels to be assessed within this District along with the associated assessment amounts are provided herein. 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. Assessment Roll Fiscal Year 2014/2015 2014/2015 Kaitlyn Place Landscape & Lighting District Page 11 ASSESSOR'S UM ML- 5780 - 023 -086 SFR 1 1.0 771.57 512.00 5780 - 023 -087 SFR 1 1.0 771.57 512.00 5780 - 023 -088 SFR 1 1.0 771.57 512.00 5780 - 023 -089 SFR 1 1.0 771.57 512.00 5780 - 023 -090 SFR 1 1.0 1 771.57 1 512.00 2014/2015 Kaitlyn Place Landscape & Lighting District Page 11 RESOLUTION NO. 7026 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 2014 -15 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 2014 -15 for the special benefits received by properties therein for the annual operation, maintenance and servicing of street 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 collection of assessments within the District for Fiscal Year 2014 -15 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, 2014 and ending June 30, 2015 (Fiscal Year 2014 -15), 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: 3a) The land 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. 3b) The District as defined by the Assessment Diagram contained in the Engineer's Report, includes all of the lands receiving such special benefit. 2 3c) 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 2014 -15. SECTION 4. The City Council hereby orders the proposed improvements to be made as described within the Engineer's Report. 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 2014 -15, the County Auditor of Los Angeles shall enter on the County Assessment Roll opposite each parcel of land the amount of levy established by the Engineer's Report, and such levies shall 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, 2014 and ending June 30, 2015, 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 f=iscal Year 2014 -15 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 2014 -15 as approved, with the County Auditor of Los Angeles. Passed, approved and adopted this day of , 2014. ATTEST: City Clerk APPROVED AS TO FORM: f r T Stephen P. Deitsch City Attorney 4 Mayor of the City of Arcadia RESOLUTION NO. 7027 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA CONFIRMING THE ENGINEER'S REPORT FOR THE LEVY AND COLLECTION OF THE KAITLYN PLACE LANDSCAPING AND LIGHTING DISTRICT AND THE ASSESSMENT DIAGRAM CONNECTED THEREWITH; AND ORDERING THE LEVY AND COLLECTION OF ASSESSMENTS FOR FISCAL YEAR 2014 -15 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 Kaitlyn Place Landscaping and Lighting District (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 2014 -15 for the special benefits received by properties therein for the annual operation, maintenance and servicing of street 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 2014 -15 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, 2014 and ending June 30, 2015 (Fiscal Year 2014 -15), 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: 3a) The land 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. 3b) The District as defined by the Assessment Diagram contained in the Engineer's Report, includes all of the lands receiving such special benefit. 2 3c) 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 2014 -15, SECTION 4. The City Council hereby orders the proposed improvements to be made as described within the Engineer's Report. 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 landscaping 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 2014 -15, the County Auditor of Los Angeles shall enter on the County Assessment Roll opposite each parcel of land the amount of levy established by the Engineer's Report, and such levies shall 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, 2014 and ending June 30, 2015, 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 2014115 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 2014 -15 as approved, with the County Auditor of Los Angeles. Passed, approved and adopted this day of 12014. ATTEST: City Clerk APPROVED AS TO FORM: P. � Stephen P. Deitsch City Attorney 4 Mayor of the City of Arcadia