Loading...
HomeMy WebLinkAboutItem 10b - Confirming Citywide Street Lighting Assessment DistrictResolution No. 7261 - Citywide Street Lighting Assessment District June 18, 2019 Page 1 of 4 DATE: June 18, 2019 TO: Honorable Mayor and City Council FROM: Tom Tait, Public Works Services Director By: Carmen Masud, Senior Management Analyst SUBJECT: RESOLUTION NO. 7261 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 2019-20 Recommendation: Adopt SUMMARY The Citywide Lighting District No. 1 (“Citywide Lighting District or 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 4, 2019, City Council meeting, the City Council adopted Resolution Nos. 7255 through 7257, 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 18, 2019, 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 Citywide Lighting District. Upon conclusion of the public hearing, it is recommended that the City Council adopt Resolution No. 7261 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 2019-20. 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 directed the formation of a Citywide Lighting District via the Landscaping and Lighti ng Act of 1972. Under this Act, assessments are based on the special benefit that street Resolution No. 7261 - Citywide Street Lighting Assessment District June 18, 2019 Page 2 of 4 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 2019-20 proposed Budget for the Lighting District is $1,256,900, of which, $1,056,584 has been determined to be of special benefit to 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 $750,601, of the total street lighting budget while the property owners (“District”) will pay about 40%, or $506,299, of street lighting costs. The Citywide Lighting District budget for Fiscal Year 2019-20, as proposed, slightly decreased by 0.73%, or $9,300. The decrease is due to lower electricity costs, which is a benefit of changing many streetlights to LEDs. For Fiscal Year 2019-20, the annual assessment rate for a single-family property owner in Zone 1 will remain at $20.04; and for a single-family property owner in Zone 2, the annual assessment rate will remain at $34.17. As part of the District formation, an assessment range formula was also developed to provide reasonable increases and inflationary adjustments that are associated with Resolution No. 7261 - Citywide Street Lighting Assessment District June 18, 2019 Page 3 of 4 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 City is allowed to increase the annual assessment rate to the maximum assessment rate, the proposed property owners’ assessment rate will not increase as the Citywide Lighting District Budget did not increase; rather, it remained almost the same. The assessment rates will continue to 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 201 9-20 maximums of $21.83 for Zone 1 and $37.11 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 2018-19 and the proposed Fiscal Year 2019-20 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 6, 2019. As of the preparation date of this staff report, the City has not received any opposition to the proposed assessment rate for Fiscal Year 2019-20. 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. FY 18-19 Assessment Rate FY 19-20 Assessment Rate Maximum Allowed Assessment Rate Lighting District Total Budget $1,266,200 $1,256,900 Zone 1 (Arterial Lights) Sparse Lighting $20.04 ($4.01) $20.04 ($4.01) $21.83 Zone 2 (Local Lights) Sparse Lighting $34.17 ($6.83) $34.17 ($6.83) $37.11 Resolution No. 7261 - Citywide Street Lighting Assessment District June 18, 2019 Page 4 of 4 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 $506,299 will be collected under the 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. 7261 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 2019-20. Attachment: Resolution No. 7261