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HomeMy WebLinkAbout7361 RESOLUTION NO. 7361 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, APPROVING THE PRELIMINARY ENGINEER'S REPORT OF WILLDAN FINANCIAL SERVICES FOR THE ARCADIA CITYWIDE LIGHTING DISTRICT NO. 1 WHEREAS, the City Council of the City of Arcadia (the "City"), in Fiscal Year 2010- 11, pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the "1972 Act"), established and thereafter has levied annual assessments for the Arcadia Citywide Lighting District No. 1 (hereinafter referred to as the "District"); and WHEREAS, the 1972 Act provides for the formation of an assessment district pursuant to Chapter 2 Article 1 of the 1972 Act, and the levy and collection of assessments by the County on behalf of the City pursuant to Chapter 4 Article 2 of the 1972 Act; and WHEREAS, the City Council, by previous resolution, has ordered Willdan Financial Services as the Engineer of Work (hereinafter referred to as the "Engineer"), in accordance with the 1972 Act, to prepare and file with the City Clerk an Engineer's Report ("Report") establishing Fiscal Year 2021-22 assessments for the District; and WHEREAS, a Report has been prepared and filed with the City Clerk of the City of Arcadia in accordance with Article 4 of Chapter 1 (Sections 22565 through 22574) of the 1972 Act, said Report being entitled "City of Arcadia, Arcadia Citywide Lighting District No. 1, Fiscal Year 2021-22 Engineer's Report"; and WHEREAS, the City Clerk has presented to the City Council said Report as 1 prescribed by Chapter 2, Article 1, Section 22586 of said 1972 Act; and WHEREAS, the City Council has examined and reviewed the Report as presented and is preliminarily satisfied with the Report, and with each and all of the budget items and documents therein, and that the proposed assessments have been spread in accordance with the special benefits received from the proposed improvements as set forth in said Report. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES HEREBY FIND, DETERMINE, AND RESOLVE AS FOLLOWS: SECTION 1. RECITALS. The preceding recitals are all true and correct. SECTION 2. REPORT CONTENT. The Report as presented consists of the following: 2a) Plans and specifications that describe the District and Improvements. 2b) Method of Apportionment that outlines the special benefit conferred on properties within the District from the improvements; and the calculations used to establish each parcel's proportional special benefit assessment for the fiscal year including the establishment of: i. Annual assessments for the ongoing maintenance, servicing, and operation of street lighting improvements that provide special benefits to the properties in the District; and ii. An Assessment Range Formula that provides for inflationary adjustments to the annual assessment for the ongoing maintenance, servicing, and operation of street lighting 2 improvements, thereby establishing the maximum assessment rate authorized for the fiscal year. 2c) The Budget that outlines the estimated annual expenses to provide and maintain the improvements, including incidental expenses authorized by the 1972 Act. 2d) An Assessment Diagram that identifies the boundaries of the District, the designated zones of benefit, and the associated lots, parcels, and properties included therein. 2e) An Assessment Roll containing the Assessor Parcel Numbers that comprise the District and the proportional assessments for Fiscal Year 2021-22. SECTION 3. REPORT APPROVAL. The Report, attached hereto as "Exhibit A", is hereby approved and ordered to be filed in the Office of the City Clerk as a permanent record and to remain open to public inspection. SECTION 4. The City Clerk shall certify to the adoption of this Resolution. [SIGNATURES ON NEXT PAGE] 3 Passed, approved, and adopted this 1st day of June, 2021. ayor of the Ci,f Arcadia ATTEST: Clerk APPROVED AS TO FORM: Stephen P. Deitsch City Attorney 4 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS: CITY OF ARCADIA ) I, GENE GLASCO, City Clerk of the City of Arcadia, hereby certifies that the foregoing Resolution No. 7361 was passed and adopted by the City Council of the City of Arcadia, signed by the Mayor and attested to by the City Clerk at a regular meeting of said Council held on the 1st day of June, 2021 and that said Resolution was adopted by the following vote, to wit: AYES: Beck, Chandler, Verlato, Cheng, and Tay NOES: None ABSENT: None City Clerk of the City of Arcadia 5 Exhibit "A" A nr 4 fl► A City of Arcadia ARCADIA CITYWIDE LIGHTING DISTRICT NO. 1 2021 /2022 ENGINEER'S REPORT Intent Meeting: June 1 , 2021 Public Hearing: June 15, 2021 27368 Via Industria Suite 200 Temecula,CA 92590 T 951 587.35001800.755 6864 F 951 587.35101888.326 6864 W I L L DA N Property Tax Information Line T.866 807 6864 www.willdan.com TABLE OF CONTENTS I. INTRODUCTION 1 II. PLANS AND SPECIFICATIONS 2 A. DESCRIPTION OF THE DISTRICT 2 B. DESCRIPTION OF IMPROVEMENT AND SERVICES 2 III. METHOD OF APPORTIONMENT 5 A. BENEFIT ANALYSIS 5 B. ASSESSMENT METHODOLOGY 8 C. ASSESSMENT RANGE FORMULA 17 IV. DISTRICT BUDGET 18 A. BUDGET 18 B. PARCEL ASSESSMENT CALCULATION 20 V. DISTRICT DIAGRAM 21 VI. ASSESSMENT ROLL 23 WWILLDAN II. 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 III (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 1972 Act 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 1972 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: 2021/2022 Arcadia Citywide Lighting District No. 1 Page 2 of 24 WWILLDAN Approximately sixty-three percent (63%) of the streetlights within the District are owned and maintained by Southern California Edison Company. The remaining thirty-seven percent (37%)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 Edison include an Electric Delivery rate which contains the cost of moving energy from the grid to one's home or business and maintenance cost of the electric lines. SCE also charges Arcadia residents a CCA Cost Responsibility Surcharge which includes PCIA (the rate to recover costs of power purchased before residents joined Clean Power Alliance), a Department of Water Resources Bond Charge to cover the cost of buying power for customers during the energy crisis, and a Competition Transition Charge (non-by-passable charge applicable to all existing and future SCE Bundled Service Customers, all Direct Access Customers, and all Departing Load Customers for recovery of SCE's transition costs). The Energy for City-Owned streetlights is procured through the Clean Power Alliance and the rate charged to the City is not regulated and authorized by the CPUC. Clean Power rates are set by the Board of Directors. 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. 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. 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. 2021/2022 Arcadia Citywide Lighting District No. 1 Page 4 of 24 WWILLDAN The method of apportionment (method of assessment) established herein is based on the premise that each assessed property receives special benefits from street lighting improvements and services that are funded by such assessments, and the assessment obligation for each parcel reflects that parcel's proportional special benefits as compared to other properties that receive special benefits as outlined in the preceding definitions established in the 1972 Act and the California Constitution. To identify and determine the proportional special benefit to each parcel within the District, it is necessary to consider the entire scope of the improvements provided as well as the properties that benefit from those improvements. The District's improvements and the associated costs described in this Report, have been carefully reviewed and have been identified and allocated based on a benefit rationale and calculations that proportionally allocate the net cost of only those improvements determined to be of special benefit to properties within the District. Zones of Benefit In an effort to ensure an appropriate allocation of the estimated annual cost to provide the District improvements based on proportional special benefits, this District will be established with benefit zones ("Zones") as authorized pursuant to Chapter 1 Article 4, Section 22574 of the 1972 Act: "The diagram and assessment may classify various areas within an assessment district into different zones where, by reason of variations in the nature, location, and extent of the improvements, the various areas will receive differing degrees of benefit from the improvements. A zone shall consist of all territory which will receive substantially the same degree of benefit from the improvements." While the California Constitution requires that "The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement or the maintenance and operation expenses of a public improvement..."; it is reasonable to conclude that street lighting on arterial streets has been installed primarily for the purpose of nighttime traffic illumination and circulation, and will benefit both the community as a whole and the public at large. On the other-hand, local street lighting improvements are not required in all areas of the City, which is evident in the absence of street lighting within certain neighborhoods. Therefore, street lighting along non-arterial streets (local street lights) provides special benefit to properties fronting these streets and was installed in connection with the development of such properties. However, these improvements are not mutually exclusive or typically isolated to a particular parcel but are rather shared and directly affect entire neighborhoods or groups of parcels. The location and extent of the specific local street light improvements in relationship to those neighborhoods or groups of parcels immediately adjacent or in close proximity to those improvements must be considered. Therefore, as part of this analysis, the District includes two distinct Zones. Zone 1 includes all parcels that specially benefit from the maintenance of street lighting along arterial streets, 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 Ill) that is considered to be general benefit versus special benefit. 2021/2022 Arcadia Citywide Lighting District No. 1 Page 6 of 24 1NWILLDAN B. ASSESSMENT METHODOLOGY In order to calculate and identify the proportional special benefit received by each parcel and their proportionate share of the improvement costs it is necessary to consider not only the improvements and services to be provided, but the relationship each parcel has to those improvements as compared to other parcels in the District. Article XIIID Section 4a reads in part: "...The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement or the maintenance and operation expenses of a public improvement or for the cost of the property related service being provided. No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel." Street lighting, like most public improvements, provides varying degrees of benefit(whether they be general or special) based largely on the extent of such improvements, the location of the improvements in relationship to the properties, the specific use and size of each property, and the reason or need for such improvements as it relates to individual properties. In this District these issues are each considered in determining the proportional special benefit to each parcel by the use of benefit zones, the separation of general benefit and special benefit, and County land use designations. The specific use and size of each property is accounted for to reflect each parcel's need for such improvements and its reasonable cost of the proportional special benefit as compared to other properties that benefit from those improvements.Therefore, an equivalent benefit unit methodology is utilized to assess properties accordingly. Equivalent Benefit Units In addition to the use of Zones, the method of apportionment established for this District to reflect the proportional special benefit of each parcel utilizes a weighted methodology of apportionment typically referred to as an Equivalent Benefit Unit (EBU) methodology. This method of apportionment establishes the typical detached single-family home site as the basic unit of assessment. A single-family residential unit is assigned one (1.0) Equivalent Benefit Unit(EBU)and other property types(land uses)are proportionately weighted (weighted EBU) based on a benefit formula that equates each property's specific characteristics and special benefits to that of the single-family residential unit. This proportional weighting may be based on several considerations that may include, but are not limited to: the type of development (land use), development-status (developed versus undeveloped), size of the property (acreage or units),vehicular trip generation, street frontage, densities or other property related factors including any development restrictions or limitations; as well as the density of lighting associated with each property(addressed through the application of a benefit multiplier factor which is discussed in the next section). 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.; 2021/2022 Arcadia Citywide Lighting District No. 1 Page 8 of 24 WW1LLDAN Although multi-family residential properties receive similar special benefits to that of single- family residential property and an appropriate and comparative calculation of proportional special benefits is reasonably reflected by the parcel's total number of residential units, it would not be reasonable to conclude that on a per unit basis, the benefits are equal. Studies have consistently shown that multi-family units impact public infrastructure at reduced levels compared to a single-family residence, which is reflective of their reduced structure size, trip generation and need for various public improvements. Furthermore, as the density (number of units per parcel) increase, the average distance from the street light improvements tends to increase and the number of vehicular trips generated tends to decline because the population density per unit tends to decrease (largely because of reduced unit sizes). Based on these considerations, it is reasonable to conclude that the actual number of street lights per unit is 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 2021/2022 Arcadia Citywide Lighting District No. 1 Page 10 of 24 1NW 1 LLDAN 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 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 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 2021/2022 Arcadia Citywide Lighting District No. 1 Page 12 of 24 WWILLDAN • 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; • 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. 2021/2022 Arcadia Citywide Lighting District No. 1 Page 14 of 24 Wwi LLDAN Table 2: Equivalent Benefit Unit Assignments Land Use Benefit Unit Calculations Single Family Residential Property 1.000 per unit 0.750 per unit (units 1-5) 0.625 per unit (units 6-25) Multi-Family Residential&Mixed Use 0.500 per unit (units 26-50) Property 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: • 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; 2021/2022 Arcadia Citywide Lighting District No. 1 Page 16 of 24 1NWILLDAN 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). 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 2021/2022, an inventory of arterial streetlights, and the maintenance costs attributable to arterial streetlights. Table 3 provides the City's street light maintenance budget for fiscal year 2021/2022 and Table 4 provide a detailed inventory of the arterial streetlights within the City of Arcadia as well as the maintenance cost associated with these arterial streetlights. 2021/2022 Arcadia Citywide Lighting District No. 1 Page 18 of 24 WWI LLDAN 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 Fiscal Year 2021/2022 Budget Total Budget Zone 1 Zone 2 Arterial Lights Local Lights Arterial Lights $294,877 $294,877 $0 Local Street Light Improvements 861,123 0 861,123 Annual Maintenance Budget $1,156,000 $294,877 $861,123 Administration $109,400 $27,906 $81,494 Total Expense(see table above for breakdown) $1,265,400 $322,783 $942,617 City Contribution for General Benefit(67.5%of Primary)(1) ($199,042) ($199,042) $0 Annual Maintenance Budget Less General Benefit(2) $1,066,358 $123,741 $942,617 City Contribution for Special Benefit Reduction (2) ($559,275) ($38,935) ($520,340) BALANCE TO LEVY(2) $507,083 $84,806 $422,278 Total Parcels 16,962 2,603 14,359 Parcels Levied 15,007 2,535 12,472 Total EBU Levied 16,589.97 4,231.83 12,358.14 Maximum Rates(3) $23.15 $39.36 Applied Rates(3) $20.04 $34.17 0)The general benefit contribution applies to Arterial Streetlights only. (2)Totals may not foot due to rounding. (3)The Districts Maximum and Applied Rates have an annual adjustment not to exceed three percent(3%),Maximum Rates were increased by 3%. Applied Rates were not increased by the allowable percentage for fiscal year 2021/2022. Reference section C: Maximum Range Formula. B. PARCEL ASSESSMENT CALCULATION Pursuant to the provisions of the California Constitution, the proportionate special benefit derived by each parcel within the District and its corresponding assessment obligation shall be determined in relationship to the entirety of the capital cost of a public improvement or the maintenance and operation expenses of a public improvement. The following formulas are used to calculate each parcel's Levy Amount (proportional assessment obligation): 2021/2022 Arcadia Citywide Lighting District No. 1 Page 20 of 24 WW1 LLDAN ASSESSMENT DIAGRAM CITY OF ARCADIA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA Arcadia Citywide Lighting District No. 1 f Legend 1 1 I Arsenals` & Li Arcadia City Boundary Zone 1-Arterial Parcels Zone 2-Non Adenal Panels 111 7 ,�•a Kr. a 9 /41 1 Cwp.6 f I__1: 1+1 tan Tun. uwd+" WILLDAN Fl�.,�,�a . 2021/2022 Arcadia Citywide Lighting District No. 1 Page 22 of 24 1NW I LLDAN Zone 1 LAND USE PARCELS FY 2021/22 FY 2021/22 LEVIED EBUs(2) ASSESSMENT(2) COM 400 1,180.97 $23,667 CONDO 1,294 970.50 19,449 HOT 5 56.14 1,125 INS 35 86.65 1,736 MFR 189 1,360.60 27,267 MIX 8 16.88 338 PARKING 61 36.64 734 PUB (1) 1 1.80 36 SFR 520 512.80 10,277 SPC 3 3.31 66 VAC 19 5.55 111 GRAND TOTAL(1) 2,535 4,231.83 $84,806 (i)Includes SBE charge of$36.07 (2)Totals may not foot due to rounding. Note:Variance in Assessment amount due to rounding to nearest penny. Zone 2 LAND USE PARCELS FY 2021/22 FY 2021/22 LEVIED EBUs(2) ASSESSMENT(2) COM 315 490.20 $16,750 CONDO 2,636 1,957.80 66,905 HOT 5 32.78 1,120 INS 24 49.85 1,704 MFR 671 2,226.03 76,064 MIX 2 5.02 171 PARKING 57 20.47 699 PUB (1) 10 10.28 351 SFR 8,732 7,555.20 258,155 SPC 1 0.15 5 VAC 19 10.37 354 GRAND TOTAL(1) 12,472 12,358.14 $422,280 (1)Includes SBE charges of$282.25 (2)Totals may not foot due to rounding. Note:Variance in Assessment amount due to rounding to nearest penny. 2021/2022 Arcadia Citywide Lighting District No. 1 Page 24 of 24