HomeMy WebLinkAboutItem 10b - Lighting Assessment DistrictResolution No. 7220 - Citywide Street
Lighting Assessment District
June 19, 2018
Page 1 of 4
DATE: June 19, 2018
TO: Honorable Mayor and City Council
FROM: Tom Tait, Public Works Services Director
By: Carmen Masud, Senior Management Analyst
SUBJECT: RESOLUTION NO. 7220 CONFIRMING THE ENGINEER’S REPORT
FOR THE LEVY AND COLLECTION OF THE ARCADIA CITYWIDE
LIGHTING DISTRICT NO. 1 AND THE ASSOCIATED ASSESSMENT
DIAGRAM; AND ORDERING THE LEVY AND COLLECTION OF
ASSESSMENTS FOR FISCAL YEAR 2018-19, INCLUDING AN
EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY
ACT (“CEQA”)
Recommendation: Adopt
SUMMARY
The Arcadia Citywide Lighting District No. 1 (“Citywide Lighting District”) was formed in
the City of Arcadia pursuant to the Landscaping and Lighting Act of 1972 and
Proposition 218 balloting requirements. The District was formed for the purpose of
partially funding the ongoing operation, maintenance, and servicing of th e City’s street
lighting system. At the June 5, 2018, City Council meeting, the City Council adopted
Resolution Nos. 7216 through 7218, which initiated the proceedings for the annual levy
and collection of assessments, approved the preliminary Engineer’s Report, and set the
public hearing for the June 19, 2018, City Council Meeting. The purpose of the public
hearing is to allow the public an opportunity to provide comments regarding the levy and
collection of the Arcadia Citywide Lighting District No. 1.
Upon conclusion of the public hearing, it is recommended that the City Council adopt
Resolution No. 7220 confirming the Engineer’s Report for the levy and collection of the
Arcadia Citywide Lighting District No. 1 and the Associated Assessment Diagram; and
ordering the levy and collection of assessments for Fiscal Year 2018-19.
BACKGROUND
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. To address this issue, in 2009, the City Council
Resolution No. 7220 - Citywide Street
Lighting Assessment District
June 19, 2018
Page 2 of 4
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 Citywide Lighting District area. Proposition 218
noticing and balloting requirements were met and, on August 3, 2010, the City Council
by Resolution adopted the Engineer’s Report for the formation of the Citywide Lighting
District and approved the levy and collection of assessments beginning in Fiscal Year
2010-11.
DISCUSSION
To ensure appropriate allocation and annual levy of assessments based on proportional
special benefits, the Citywide Lighting District established two benefit zones to separate
general benefit and special benefit.
Zone 1 includes properties along major thoroughfares and includes parcels that
receive the general benefit of street lighting along arterial streets.
Zone 2 includes properties in residential neighborhoods that specifically benefit
from maintenance of street lighting on local streets.
In addition to the use of zones, the special benefit calculation utilizes a weighted factor
of apportionment referred to as an equivalent benefit unit (“EBU”) methodology. The
proportional special benefit calculation for each parcel is determined by land use,
number of units, and acreage. Furthermore, a benefit multiplier factor is also employed
to account for varying levels of street lighting within the City. Some areas in the City
were developed with less lighting on their streets. These sparsely lit neighborhoods 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. P roperties in areas of the City
that do not have street lighting do not pay a street lighting assessment fee.
The City’s Fiscal Year 2018-19 proposed Budget for the Lighting District is $1,266,200,
of which, $1,065,323 has been determined to specially benefit properties within the
Citywide Lighting District based on the assessment methodology. However, the District
was established to fund only a portion of this amount. As a result, the City will be
contributing approximately 60%, or $761,010, of the total street lighting budget while the
property owners (“District”) will pay about 40%, or $505,190, of street lighting costs. The
Citywide Lighting District budget for Fiscal Year 201 8-19, as proposed, increased by
2.34%, or $28,900. The increase is due to an increase in salaries and wages,
electricity, and liability insurance. For Fiscal Year 2018-19 the annual assessment rate
for a single-family property owner in Zone 1 will increase from $19.65 to $20.04 ($0.39
increase); and for a standard single-family property owner in Zone 2, the annual
assessment rate will increase from $33.50 to $34.17 ($0.67 increase).
Resolution No. 7220 - Citywide Street
Lighting Assessment District
June 19, 2018
Page 3 of 4
As part of the District formation, an assessment range formula was also developed to
provide reasonable increases and inflationary adjustments that are associated with
providing improvements for the Citywide Lighting District. The maximum rates for the
Citywide Lighting District are annually adjusted by an amount not to exceed 3% each
fiscal year. The adjusted maximum assessment rate is calculated independently of the
Citywide Lighting District’s annual budget. Although the proposed assessment rate for
property owners in Zone 1 and Zone 2 will increase, the assessment rate will still remain
less than the maximum assessment rate that the City is allowed to assess. The City
has never applied the maximum assessment rate for the Citywide Lighting District. As a
result, the proposed rates remain well below the allowed FY 2018 -19 maximums of
$21.19 for Zone 1 and $36.03 for Zone 2.
Using the single-family property as the baseline for the assessment, the table below
shows the annual assessment rate levied in Fiscal Year 2017-18 and the proposed
Fiscal Year 2018-19 annual assessment rates for Zones 1 and 2:
Pursuant to the Landscaping and Lighting Act of 1972, n otice for the date of the public
hearing was published on June 7, 2018. As of the preparation date of this staff report,
the City has not received any opposition to the proposed assessment rate for Fiscal
Year 2018-19. Fees can only be adopted after the conclusion of the public hearing.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental
Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the
environment. Thus, this matter is exempt under CEQA.
FISCAL IMPACT
Fees collected under the Citywide Lighting District will help defray the total maintenance
costs of lighting in the subject areas. Upon conclusion of the public hearing and
adoption of the engineer’s report, a total of $505,190 will be collected under the
FY 17-18
Assessment
Rate
FY 18-19
Assessment Rate
Maximum Allowed
Assessment Rate
Lighting District Total Budget $1,237,300 $1,266,200
Zone 1 (Arterial Lights)
Sparse Lighting
$19.65
($3.93)
$20.04
($4.01) $21.19
Zone 2 (Local Lights)
Sparse Lighting
$33.50
($6.70)
$34.17
($6.83) $36.03
Resolution No. 7220 - Citywide Street
Lighting Assessment District
June 19, 2018
Page 4 of 4
Citywide Lighting District. The levy will not exceed the cost of providing the subject
services to the areas nor will the levy exceed the Maximum Assessment Rates allowed.
The levy has 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 the Resolution categorically exempt
pursuant to the California Environmental Quality Act (“CEQA”), and adopt Resolution
No. 7220 confirming the Engineer’s Report for the levy and collection of the Arcadia
Citywide Lighting District No. 1 and the Associated Assessment Diagram; and ordering
the levy and collection of assessments for Fiscal Year 2018-19.
Attachment: Resolution No. 7220