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06-21-2011 - West Covina Citywide Lighting and Maintenance Dist - Item 9 (2).pdffit), of West Covina Memorandum TO: Andrew G. Pasmant, City Manager AGENDA and City Council ITEM NO. 9 DATE June 21, 2011 FROM: Shannon A. Yauchzee, Director/City Engineer Public Works Department SUBJECT: WEST COVINA CITYWIDE LIGHTING AND MAINTENANCE DISTRICT PUBLIC HEARING RECOMMENDATION: is recommended that the City Council adopt the following resolution: RESOLUTION NO. - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, CONFIRMING THE ENGINEER'S REPORT AND THE PLANS, SPECIFICATIONS, ESTIMATES, DIAGRAM AND ASSESSMENTS CONTAINED THEREIN; ORDERING LIGHTING FIXTURES AND ELECTRICAL CURRENT TO BE FURNISHED FOR LIGHTING FIXTURES AND TO ORDER STREET TREES TO BE INSTALLED AND MAINTAINED IN THE WEST COVINA CITYWIDE LIGHTING AND MAINTENANCE DISTRICT FOR FISCAL YEARS BEGINNING JULY 1, 2011 DISCUSSION: At the regular meeting of May 3, 2011, the City Council preliminarily approved the Engineer's Report prepared pursuant to the provisions of the "Landscaping and Lighting Act of 1972" and Proposition 218 (see Attachment "B"). In addition, at that same City Council meeting, the City Council adopted Resolution No. 2011-204 declaring its intention to levy and collect the assessment and set June 21, 2011, as the date for the public hearing. It is proposed to utilize the voter approved 2.0% increase for Fiscal Year 2011-2012. This rate increase was based on the Consumer Price Index (CPI) for the Los Angeles, Riverside, and Orange County areas' increase of 2.3% for a one-year period from February all 0 to February 2011. The preliminary approval of the Engineer's Report by the City Council does not commit the City Council to adopt the proposed levy for the district. During or after the public hearing, the City Council may order the reduction of the rates and changes in expenses that are funded by the district. The City Council's action only becomes final when the assessments are confirmed by resolution upon the completion of the public hearing. The next step in the confirmation of the district is the approval of the assessment rates at the public hearing. At the public hearing, the City Council will consider all written and oral comments regarding the level of assessments and the maintenance and capital improvement work being proposed. Upon the conclusion of the public hearing, the City Council should adopt a resolution confirming the diagram and assessment levy either as proposed or as revised by the City Council. ALTERNATIVES: Staff recommends an increase in current rates by 2.0% based on the CPI for the Los Angeles, Riverside, and Orange County areas as approved in the mail ballot election in July 1997 in accordance with Proposition 218 (Attachment "D-1"). The City Council may choose to maintain the current rates or reduce the level of assessments. Maintaining the rates at their current level (0% increase) would require the General Fund to contribute about $28,655 to the district starting July 1, 2016. Thereafter, with no increase in assessments, the annual contribution would steadily increase in subsequent years shown on the 10-Year Fiscal Projection (Attachment "D-2"). ZAAGENDA - 20111CWDPubHearing 2011-I2.d oc Andrew G. Pasmant, City Manager and City Council Page 2 - June 21, 2011 FISCAL IMPACT: In Fiscal Year 2011-2012, the Engineer's Report for the Citywide Lighting and Maintenance District proposes to use the voter approved CPI adjustment to increase the assessment rates by 2.0% from their current level. This is the amount of the increase that is allowed under Proposition 218. The projected income from the recommended rates is $1,500,058. In addition, $18,115 is projected to be received from two other sources: $13,115 proposed to be transferred in from other funds and $5,000 for tree removals and trimming of non-assessable trees. The total projected revenue is $1,518,173. The rates in the district are based on the Equivalent Dwelling Unit (EDU) method. In this methodology, a single-family residential parcel will equal one EDU and pay an assessment of $47.73 per year, an increase of $0.92 per year from Fiscal Year 2010-2011. A 15-year rate history is included as Attachment "A." The following table shows the effect of the proposed assessment rate increase on the various land uses in the district. BENEFIT TYPE FY 2010-2011 i PROPOSED FY 2011-2012 Single Family Residential Lights $32.07 $32.70 Trees $14.74 $15.03 Lights and Trees $46.81 $47.73 Condominium Lights $24.05 1 $24.53 Lights and Trees $35.11 $35.80 Multi-Family Residential Lights - first 4 du $24.05/du $24.53/du Lights and Trees - first 4 du $35.11/du $35.80/du additional du up to 15 $23 .41/du $23.87/du additional du over 15 $11.41/du $11.93/du Commercial / Industrial Lights - up to 5 acres $213.79/ac $218.00/ac Each additional acre $53.45/ac $55.50/ac Lights and Trees - up to 5 acres $287.52/ac $293.15/ac Each additional acre $71.88/ac $74.33/ac Schools Lights - up to 5 acres $160.35/ac $163.50/ae Each additional acre $40.09/ac $40.88/ac Lights and Trees - up to 5 acres $234.05/ac $238.65/ac Each additional acre $58.51/ac $59.66/ac Mobile Home Park Lights and Trees - per dwelling 1 $23.41 I $23.87 Vacant Non-SFR and Parks Lights - up to 5 acres $53.45/ac $54.50/ac Maximum $267.23 $272.50 Lights and Trees - up to 5 acres _ $71.88/ac $73.29/ac _____ Maximum $359.40 $366.44 ac = acre, du = dwelling unit The proposed Operating Budget for the district is $1,394,886 (Attachment "C"). This is an increase of 0.09% when compared to the approved/amended budget of $1,393,569 for Fiscal Year 2010-2011. The 2011-2012 operating budget for the district includes an administration and overhead charge of $130,064, personnel costs of $148,356, energy costs of $935,000, and $181,466 in direct maintenance costs. Andrew G. Pasmant, City Manager and City Council Page 3 — June 21,2011 The reserves are projected to increase from $12,721 to $136,007 by the end of Fiscal Year 2011- 2012. These reserves partially cover the cash flow, which is needed to pay monthly expenses while income is received twice a year. The amount necessary to avoid a net negative cash flow over the period of one year is $697,433, which is one-half of the proposed Operating Budget. The City's General Fund will be used to cover the temporary cash flow deficiencies. If the scope of services delivered by the district is increased beyond what is required in Fiscal Year 2011- 2012, then the General Fund will most likely need to contribute to fund the increased costs. Since the City of West Covina is not exempt from assessments for this district, the City's total assessment is about $24,417. The City pays this assessment using General Funds within the Finance Department's Operating Budget. As an option, this assessment could be paid with Gas Tax Funds if excess funds are available; however, none are projected to be available for Fiscal Year 2011-2012. There are no legal requirements or formal guidelines for the amount of reserves in an assessment district; however, at least 50% is required to cover cash flow. A reserve between 100% and 200% is recommended by staff to cover cash flow, future capital projects, emergencies, and as a benefit it also provides interest income. 7/1/1 Prepared by: Miguel Hernandez Reviewed/Approved by: Shannon A. Yauchzee A71' Civil Engineering Associate Director/City Engineer Reviewed/Approved by: Finance Attachments: "A" - 15-Year Rate History "B" - Engineer's Report "C" — Operating Budget Detail "D" - 10-Year Fiscal Projection - Chart "F" - Resolution ATTACHMENT "A" CITYWIDE LIGHTING AND MAINTENANCE DISTRICT 5-YEAR HISTORY AVERAGE LOT WITH 75 FEET OF ASSESSABLE FRONTAGE Fiscal Year Per Assessable Front Foot Assessment Prposed 2011-2012 N/A S 47.73 2010-2011 N/A $ 46.81 2009-2010 N/A 5 45.94 2008-2009 N/A $ 45.89 2007-2008 N/A $ 44.98 2006-2007 N/A $ 44.10 2005-2006 N/A 5 43.23 2004-2005 N/A $ 42.39 2003-2004 N/A $ 41.60 2002-2003 N/A $ 40.77 2001-2002 N/A $ 39.98 2000-2001_ N/A $ 39.19 1999-2000 N/A $ 38.44 1998-1999 N/A $ 38.44 1997-1998 N/A $ 38.44 1996-1997 $ 1.48 $ 111.00 ZAAGF.NDA - 20111CWDPubHcaring 201 ATTACHMENT "B" ENGINEER'S REPORT FISCAL YEAR 2011-2012 CITY OF WEST COVINA CITYWIDE LIGHTING AND MAINTENANCE DISTRICT April 8, 2011 Citywide Lighting and Maintenance District TABLE OF CONTENTS Report 1 Part A - Plans and Specifications 3 Part B - Estimate of Costs 4 Part C - Assessment Rolls 5 Part D - Method of Apportionment 5 Summary of Assessments 11 Part E - Property Owners List 12 Part F - Assessment Diagram 12 April 8,2011 Citywide Lighting and Maintenance District CITY OF WEST COVINA ENGINEER'S REPORT PREPARED PURSUANT TO THE PROVISIONS OF THE LANDSCAPING AND LIGHTING ACT OF 1972 SECTION 22500 THROUGH 22679 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE AND ARTICLE XII D OF THE CALIFORNIA CONSTITUTION Pursuant to Part 2 of Division 15 of the Streets and Highways Code of the State of California, Article XII D of the California Constitution and in accordance with the Resolution of Intention adopted by the City Council of the City of West Covina, State of California, in connection with proceedings for: CITY OF WEST COVINA LIGHTING AND LANDSCAPING MAINTENANCE DISTRICT (Hereinafter referred to as the "Assessment District" or "District") I, Shannon A. Yauchzee, Public Works Director/City Engineer of the City of West Covina, submit herewith the "Report" consisting of six (6) parts as follows: PART A PLANS AND SPECIFICATIONS Plans and specifications for the improvements are as set forth on the lists thereof, attached hereto, and are on file in the Office of the City Engineer and incorporated herein by reference. PART B ESTIMATE OF COST An estimate of the costs of the proposed improvements, including incidental costs and expenses in connection therewith, is as set forth on the lists thereof, attached hereto, and are on file in the Office of the City Clerk and incorporated herein by reference. PART C ASSESSMENT ROLLS An assessment of the estimated cost of the improvements on each benefited lot or parcel of land within the Assessment District. PART D METHOD OF APPORTIONMENT The method of apportionment of assessments, indicating the proposed assessment of the net amount of the costs and expenses of the improvements to be assessed upon the several lots and parcels of land within the Assessment District, in proportion to the estimated benefits to be received by such lots and parcels. The Assessment Roll is filed in the Office of the City Clerk and by reference is made a part hereof. PART E PROPERTY OWNER LIST A list of names and addresses of the owners of real property within the Assessment District, as shown on the last equalized roll of the Assessor of the County of Los Angeles. The list is keyed to the records of the Assessor of the County of Los Angeles, which are incorporated herein by reference. April 8, 20 Citywide Lighting and Maintenance Distr PART F ASSESSMENT DISTRICT DIAGRAM The Diagram of the Assessment District Boundaries showing the exterior boundaries of the Assessment District, the boundaries of any zones within the Assessment District and the lines and dimensions of each lot or parcel of land within the Assessment District is on file in the Office of the City Engineer and incorporated herein by reference. The lines and dimensions of each lot or parcel within the Assessment District are those lines and dimensions shown on the maps of the Assessor of the County of Los Angeles for fiscal year to which this Report applies. The Assessor's maps and records are incorporated by reference herein and made part of this Report. April 8.2011 Citywide Lighting and Maintenance District PART A PLANS AND SPECIFICATIONS The facilities, which have been constructed within the City of West Covina, and those which may be subsequently constructed, will be serviced and maintained as generally described as follows: DESCRIPTION OF IMPROVEMENTS FOR THE CITY OF WEST COVINA CITYWIDE LIGHTING AND MAINTENANCE DISTRICT The existing facilities to be maintained and serviced include street lighting facilities and street trees. The District will fund the costs in connection with the district maintenance and servicing including, but not limited to, personnel, electrical energy, water, materials, contracting services, and other expenses necessary for the satisfactory operation of these facilities. Reference is made to Part "D" of this report fur a discussion of the Zones of Benefit and the facilities associated with them, which are serviced and maintained. The facilities are described as follows: Landscaping and Appurtenant Facilities Facilities include but are not limited to: trees, irrigation system, hardscape, fixtures, sidewalk maintenance resulting from landscape growth and appurtenant facilities, in public right-of-ways, parkways, and dedicated easements within the boundaries of said Assessment District. Lighting and Appurtenant Facilities Facilities include but are not limited to: poles, fixtures, bulbs, conduits, conductors, equipment including guys, anchors, posts and pedestals, metering devices and appurtenant facilities as required to provide lighting in the public right-of-ways and dedicated easements within the boundaries of said Assessment District. The public lighting system shall be maintained to provide adequate illumination. Electricity for street lights shall be furnished by the Southern California Edison Company, and it shall be adequate for the intended purpose. Rates for power shall be those authorized by the California Public Utilities Commission. Maintenance means the furnishing of services and materials for the ordinary and usual operation, maintenance and servicing of the landscaping, public lighting facilities and appurtenant facilities, including repair, removal or replacement of all or part of any of the landscaping, public lighting facilities or appurtenant facilities; providing for the life, growth, health, and beauty of the landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, and treating for disease or injury; the removal of trimmings, rubbish, debris, and other solid waste. Servicing means the furnishing of water for the irrigation of landscaping and the maintenance of any of the public lighting facilities and furnishing of electrical energy for the public lighting facilities or for the lighting or operation of landscaping or appurtenant facilities. The plans and specifications for the improvements are on file in the office of the City Engineer and are by reference herein made a part of this report. 3 April 8, 201 I Citywide Lighting and Maintenance District PART B ESTIMATE OF COST The City's budget for the operation and services costs, shown below, detail the estimated costs and fund balances for Fiscal Year 2011-2012 as available at the time of preparation of this report. The 1972 Act provides that the total cost can be recovered in the assessment spread including incidental expenses. The latter can include engineering fees, legal fees, printing, mailing, postage, publishing, and all other related costs identified with the district proceedings. Expenditures Estimated expenditures for maintenance and operation for Fiscal Year 2011-2012 are as follows: LIGHTING Direct Lighting Zone A Zone B $1,048,437 $ 70,007 $ 11,369 Total STREET TREES Direct Trees Total $ 265,073 S 1,129,813 $ 265,073 TOTAL OPERATING BUDGET CONTINGENCY AND RESERVES Cash Flow Contingency Reserves Total TOTAL DISTRICT EXPENDITURES $ 136,008 0 S1,394,886 $ 136,008 $1,530,894 Revenues Projected revenues available to the District for Fiscal Year 2011-2012 are as follows: I. Assessment Income Interest Income TOTAL PROJECTED REVENUE $1,500,058 51,500,058 FUND BALANCE (Reserves from Prior Year) Transfer in for other Funds Tree removal/trimming non-assessable trees TOTAL FUNDS AVAILABLE $ 12,721 $ 5,000 $1,530,894 The 1972 Act requires that a special fund be set-up for the revenue and expenditures of the District. Funds raised by assessment shall be used only for the purpose as stated herein. A contribution to the District by the City may be made to reduce assessments, as the City Council deems appropriate. Any balance or deficit remaining on July l st must be carried over to the next fiscal year. 4 April S. 2011 Citywide Lighting and Maintenance District PART C ASSESSMENT ROLL The proposed assessment, commencing with Fiscal Year 2011-2012, and the amount of assessment apportioned to each lot or parcel, as shown on the latest roll at the Assessor's Office, are contained in the Assessment Roll on file in the Office of the City Clerk of the City of West Covina, which is incorporated herein by reference. The description of each lot or parcel is part of the records of the Assessor of the County of Los Angeles and these records are, by reference, made a part of this Report. The proposed assessment is a multi-year assessment. The amount of the assessment commences in 2011-2012, and if adopted, will be kept at the same level each year, with only a CPI increase annually. The assessment will be levied at such amount until terminated by the City Council or voters or increased by the same ballot procedure. Because there has been no legislation, which clarifies the relationship with Proposition 218 and the 1972 Act, it is unclear what procedure, if any, will be required for annual confirmation of the assessment. In any case, the assessment roll will be updated annually, after the lien date, to reflect newly developed properties. PART D METHOD OF APPORTIONMENT OF ASSESSMENT GENERAL Part 2 of Division 15 of the Street and Highway Code, the Landscaping and Lighting Act of 1972, permits the establishment of assessment districts by cities for the purpose of providing certain public improvements which include the construction, maintenance and servicing of street lights, traffic signals, landscaping, park and recreational facilities. Section 22573, Landscaping and Lighting Act of 1972 requires that maintenance assessments be levied according to benefit rather than according to assessed value. This section states: "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." The Act permits the designation of zones of benefits within any individual assessment district if "by reason of variation in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvements." (Sec. 22574.) Thus, the 1972 Act requires the levy of a true "assessment" rather than a "special tax." In addition, Proposition 218 (Prop. 218), the "Right to Vote on Taxes Act" which was approved on the November 1996 Statewide Ballot, requires that a parcel's assessment may not exceed the reasonable cost of the proportional special benefit conferred on that parcel. Prop. 218 provides that only special benefits are assessable and the City must separate the general benefits from the special benefits. 5 April 8,2011 Citywide Lighting and Maintenance District REASON FOR THE ASSESSMENT The assessment is proposed to be levied to defray the cost of the operation, servicing, and maintenance of street trees and street lighting and appurtenant facilities, including but not limited to, personnel, electrical energy, utilities such as water, materials, contracting services, and other items necessary for the satisfactory operation of these services. EQUIVALENT DWELLING UNITS Since the assessments will be levied against parcels of property as shown on the tax rolls, the final charges must be assigned by Assessor's Parcel Number. If assessments were to be spread just by parcel, not considering land use or parcel size, a single family parcel would be paying the same as a 50 unit apartment parcel or a large commercial establishment in a similar zone and this would not be equitable and would not satisfy the Prop. 218 requirements. The single-family residential parcel has been selected as the basic unit for calculation of assessment since it represents over 80% of the parcels in the City. Therefore, the single- family residential parcel is defined as an Equivalent Dwelling Unit (EDU). A methodology has been developed to calculate the EDU's for other residential land uses and for non- residential parcels. Every land-use is converted to EDU's: Parcels containing apartments are converted to EDUis based on the number of dwelling units on each parcel of land; commercial and industrial parcels are converted based on the lot size of each parcel of land. The EDU method is usually seen as more appropriate and equitable for landscaping and lighting districts, as the benefit to each parcel from the improvements being maintained extends beyond the front of their property. Therefore, assessments as apportioned as a function of land-use type and whether a property is developed or not. This may be more clearly shown by taking an example of condominiums. Under the current method of assessment, the frontage along the whole condominium complex is measured, and then is divided by the number of units within the complex. This spreads a relatively small assessment to each of the condominiums, which is not commensurate with the benefit each one of them receives. Single -Family Residential. The single-family residential parcel has been selected as the basic unit for calculation of the benefit assessment. The basic unit shall be called an Equivalent Dwelling Unit (EDU). Parcels zoned for single-family residential uses are assessed 1 EDU. Multiple-Family Residential. Multiple residential (including condominiums) land use equivalencies are determined based on the number of dwelling units on each parcel. Due to population density and size of structure relative to the typical single- family residence. each dwelling unit defined as multi-family residential, including condominiums, would be 0.75 EDU. Benefits to a multi-family residential property do not increase proportionately as the number of units increase. Therefore, the population per unit decreases as the residential land use density increases and there is a corresponding reduction in benefit to a parcel. Also, as the number of dwelling units increase, the average value per rental unit decreases. Therefore, there is a reduced benefit to a parcel as the number of dwelling units increase. By decreasing the equivalency as the number of units increase, a reasonable benefit assessment is achieved. Therefore, the equivalency is reduced to 0.5 EDU per dwelling unit, for 5 through 15 dwelling units (as parcels with 5 to 15 units are considered "high medium density" as opposed to the "low density" of duplexes, triplexes and four-plexes), and the equivalency is reduced to 0.25 EDU per dwelling unit for more than 15 units, which are considered to be "high density". Fifteen units are established as the limit of the "high medium density" category as State law (California Title 25, Section 42) requires that apartment complexes with 16 or more dwelling units have a manager located on the premises, which is an indication of "high density". April 8, 2011 Citywide Lighting and Maintenance District Mobile Homes. Mobile home parks, and mobile homes located within mobile home parks, are converted to EDU's based on the population density and size of structure relative to a single-family residence. Therefore, mobile home parks and mobile homes located within mobile home parks would be assessed 0.5 EDU per mobile home. No decrease would be applied to this factor, as mobile homes are all separate dwellings with no common walls. Non-Residential. In converting improved non-residential properties to EDU's, the factor used is the City of West Covina's average density for single-family residential areas, which are 5 dwelling units per acre. All properties developed for non- residential uses are therefore assigned 5 EDUrs per acre for the first 5 acres. It is our experience, based upon a review of large non-residential parcels, that the utilization of that portion of non-residential property greater than 5 acres mare closely resembles that of vacant land as it is typically undeveloped. Therefore, after the first 5 acres, each additional acre will be charged 25% of 5 EDUis which results in 1.25 EDUss per acre, similar to vacant land as described below. Vacant Property: Vacant property is described, as parcels with no improved structures. These properties receive benefits based on their land, as this is the basis of their value. Based on the opinions of professional appraisers, appraising current market property values for real estate in Southern California, the land value portion of the property typically ranges from 20 to 30 percent of the property's total value. Additionally, the utilization of vacant property is significantly less than improved property, and vacant property has a traffic generation rate of 0. Therefore, it is recommended that vacant property be assessed at the rate of 25 percent of improved property. Vacant Residential. Parcels defined as residential parcels, which do not have structures on the parcels, are assessed 25% of the parcel with a single family dwelling thereon. The parcel will be assessed 0.25 EDU per parcel. Vacant Non-Residential. Parcels defined as parcels which are not residential parcels and which do not have structures on the parcel area assessed based upon the acreage of the parcel. The parcels will be assessed at the rate of 25% of the developed non-residential properties, or 1.36125 EDU per acre or any portion thereof, with a minimum of 0.25 EDU per parcel and up to a maximum of 5 acres (6.80625 Ellirs) per parcel, as parcels over 5 acres may be considered as open space, and no longer receive any benefit. Public Property. Article XIIID of the California Constitution requires that all benefiting public properties be assessed for their fair share of the benefit. Public property, which is developed and used for residential or business purposes will be assessed the same as private property with the same use. Schools will be assessed as Commercial/Industrial uses. Parks will be assessed as vacant property. Exempt. Excepted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements, and right-of-ways, public greenbelts, parkways and that portion of property that is not developed and used for business purposes similar to private commercial, industrial and institutional activities. Also, excepted from assessments would be utility right-of-way, common areas (such as in condominium complexes), landlocked parcels and small parcels vacated by the City as these parcels have little or no value and therefore do not benefit from the improvements. The land use classification for each parcel has been based on the Los Angeles County Assessor's Roll. April 8,2011 Citywide Lighting and Maintenance District EQUIVALENT DWELLING UNIT (EDU) FORMULA LAND USE BASIC UNIT , X_ EDU FACTOR EDU RATES Single-Family Res. (SFR) D. U. X 1.0 1 EDU/DU Condominiums D.U. X 0.7 0.75 EDU/DU Multi-Family Res. D.U. X 0.7 0.75 EDU/DU for the first 4 units 0.5 0.5 EDU/DU for each add' units over 4 and up to 15 0.2 0.25 EDU/DU for each addT1 units over 15 Mobile Home Parks D.U. X 0.5 0.5 EDU/DU Commercial/Industrial and Other Non-Residential Acre X 5.0 5.0 EDU/Acre for the first 5 acres (including Schools) 1.2 1.25 EDU/Acre for each add'l acre over 5 acres Vacant SFR D.U. X 0.2 0.25 EDU/DU Vacant Acre X 1.2 1.25 EDU/Aere (25% of Non-Res. EDU1s) (includes Parks) 5 acre maximum DU = Dwelling Unit SPECIAL BENEFIT ANALYSIS BENEFIT FACTORS There are varying levels of benefit to property from the operation and maintenance of street lighting and street trees based on the different types of property use. Because the benefit to the property varies depending on the type of land use of the property, a Benefit Factor is applied to the EDU formula for each property for each type of improvement to obtain Benefit Units for each Property. (Equivalent Dwelling Unit) x (Benefit Factor) = Benefit Units STREET LIGHTING BENEFIT: Proper maintenance and operation of the street lighting system benefits in proximity adjacent to the lights by providing security, safety and community character, and vitality. The amount of benefit received will vary with the different land use on the property. There are three categories from which the total special benefit of a parcel is derived: I. Security and Safety Benefit. The prevention of crime, the alleviation of the fear of crime, and the prevention of traffic accidents in a community. 2. Community Character and Vitality Benefit. The promotion of social interaction, promotion of business and industry, and the contribution to a positive night time visual image for the community. 3. Lighting Intensity Benefit. As the lighting levels increase, so do the benefits associated with the lighting. Lighting Standards usually require approximately twice the level of lighting in commercial/industrial areas than in residential areas. Parcels, which are located on streets with street lights, receive a special lighting benefit. Parcels which are located on private streets receive a substantially reduced benefit from local lighting, parcel which do not have any local street lights receive no benefit from Street Lighting. 8 April 8,2011 Citywide Lighting and Maintenance District Lighting at the street intersection, which is defined as safety lighting, is considered to be the minimum lighting requirement for vehicular safety; therefore, safety lighting represents the general benefit portion of street lighting. Additionally, lights, which are on arterials of the City, which do not have parcels fronting on them, are considered a general benefit. Those general benefit portions of the City's lighting budget will not be assessed. The following table outlines the Benefit Factors for street lighting: STREET LIGHTING BENEFIT Residential FACTORS Commercial/Industrial Security & Safety 1.0 1.0 Community Character & Vitality 1.0 1.0 Lighting Intensity 1.0 2.0 Total 3.0 4.0 Schools will receive a residential benefit factor, as they tend to be in residential areas and benefit similarly to residential property. Parks are assessed as vacant land and receive a residential benefit factor. Benefit Zones. Most parcels within the City front on streets with street lights and therefore receive a direct lighting benefit. However, there are some areas in the City, which have a higher level of lighting and these have been designated as additional Benefit Zones. Zone A. The Civic Center and Plaza At West Covina areas receive a higher level of street lighting. Zone B. The properties along Glendora Avenue from Walnut Creek Parkway to the 1-10 Freeway receive a higher level of street lighting than Zone A. Those parcels which also have public lighting in adjacent alleyways receive an equal amount of benefit for the alley lights as for the street lights, therefore, these parcels are assessed two times the benefit of the basic local lighting. Those parcel that front streets without street lights do not receive a local lighting benefit and therefore are not assessed. The Following table provides a preliminary summary of Street Lighting Benefit Units (BU's) for the City. Land Use Parcels Dwellings Acres IEDU's Benefit Factor Benefit Units Single Family Res. 20,622 20,622 20,622 3 61,866.000 Condominium 3,091 3,091 2.318.25 3 6,954.750 Multi-Family Res. 486 7,346 2,879.750 3 8,639.250 Mobile Home Parks 2 265 132.500 3 397.500 Commercial/Industrial 570 867.772 3,977.074 4 15,908.296 Schools 30 331.163 928.365 3 2,785.095 Vacant SFR lot 426 106.500 3 319.500 Vacant—Parks 19 141.459 84.510 3 253.530 Vacant Non-SFR 255 8722.275 336.663 4 1,346.652 , Totals 25,501 31,324 10,062.669 31,385.612 98,470.573 The total budget for basic lighting is $1,048,437; therefore, the preliminary basic lighting assessment rate is estimated at $10.90 per BU. Accordingly, a single-family residential parcel's assessment would equal 3 BU x $10.90/BU = $32.70. 9 April 8, 2011 Citywide Lighting and Maintenance District Lighting Benefit Zone A: The total estimated budget for the Zone lighting is $70,007, therefore the preliminary basic lighting assessment rate is estimated at $33.11 per BU. The following table shows the preliminary summary of the BU's in Zone A. i Land Use Parcels Acreage EDU's Benefit Factor Benefit Units 1 Commercial/ Industrial 52 129.665 504.737 4 2,018.947 k Vacant Non-SFR 14 19.080 23.855 4 95.420 , Totals 66 148.745 528.592 2,114.367 Lighting Benefit Zone B: The budget for Zone B lighting is $11,369 and is additional to the budget for Zone A. Therefore, the preliminary basic lighting assessment rate is estimated at $19.27 per BU plus $33.11 per BU for Zone A, for a total assessment rate of $52.38 per BU. The following table shows the preliminary summary of the BU's in Zone B. Land Use Parcels Acreage EDll's Benefit . Factor . Benefit Units Commercial/Industrial 22 9.104 46.790 4 187.160 Non-SFR _Vacant 5.357 6.698 4 26.792 Totals 27 14.461 53.488 213.952 STREET TREES Trees, landscaping, hardseaping and appurtenant facilities, if well maintained, provide beautification, shade and enhancement of the desirability of the surroundings. The City maintains street trees throughout the City. The trees are located within the public right-of-way and provide aesthetically pleasing environment, shade, beautification, and according to some authorities air purification and sound attenuation. These positive attributes increase the desirability of properties located on streets that have trees on them. More importantly, proper maintenance of these facilities, especially routine trimming of street trees and removal/replacement of deceased trees, is essential to the safety of the users of adjacent properties. Parcels that are located on streets which do not have trees do not benefit and are not assessed. Street trees on arterials of the City that do not have parcels fronting on them are considered a general benefit. There are approximately 963 such trees out of approximately 29,500 street trees in the City, or 3.26%. Therefore, 3.26% of the City street tree budget will be funded through the City's General Fund account. No additional factors have been assigned for street trees; therefore, the Benefit Unit factors are the same as the EDU factors for each land use. The Following table provides a preliminary summary of Street Tree Benefit Units (BU's) for the City. Land Use Parcels Dwellings Acres EDU's Benefit Factor Benefit Units Single Family Res. 16,986 16,986 16,986.000 1 16,986.000 Condominium 167 167 125.250 1 125.250 Multi-Family Res. . 228 6,118 2,186.250 1 2,186.250 Mobile Home Parks 1 108 -54.000 1 54.000 Commercial/industrial (including Schools) 581 1,225.826 4,532.212 1 4,532.212 . Vacant SFR lot 286 _ 104.615 71.500 1 71.500 Vacant Non-SFR (including _Parks) 178 911.131 339.682 l 339.682 Totals 18,427 23,379 2,271,572 24,294.894 24,294.894 April 8, 2011 Citywide Lighting and Maintenance District The total budget for Street Trees is $265,073. Based on this amount, the preliminary assessment rate is estimated at $15.03 per BU. Therefore, a single-family residential parcel's assessment would be equal to 1 BU x $15.03/BU = $15.03. ASSESSMENT RATE SUMMARY: The base assessment rate which may be levied for each BU may be increased by the Consumer Price Index (CPI) for all Urban Consumers for the Los Angeles, Anaheim, Riverside areas in any fiscal year by City Council approval each year. The base assessment rate will be that rate as approved and noticed for Fiscal Year 2011-2012. The following table summarizes the assessment amounts for parcels in each of the zones of benefits: ASSESSMENT RATE SUMMARY Benefit Category Rate per Benefit Unit Basic Local Lighting $10.90 per BU Light Zone A $33.11 per BU Light Zone B $52.38 per BU Street Tree Benefit $15.03 per BU ASSESSMENT RATE SUMMARY BY LAND USE Benefit TVEle I Assessment I Benefit Tyne I Assessment Single Family Residential Lights $32.70 Trees $15.03 Lights & Trees $47.73 Lights $24.53 Lights & Trees $35.80 Vacant SFR 1_,ot ' Lights $8.18 Lights & Trees $11.93 Cornme re ial/InduStrial Lights $218.00/ac up to 5 ac $ 54.50/ac each addl. ac !Lights & Trees $293.15/ac up to 5 ac $ 73.29/ac each add'l ac Lights - A & Trees $737.35/ac up to 5 ac $184.34/ac each addl ac Lights - B & Trees $1,122.75/ac up to 5 ac $280.69/ac each add'l ac du = dwelling unit Multi-Familv Residential L,ights $24.52/du for first 4 Lights & Trees $35.80/du for first 4 $23.87 addl Du's up to 15 I $ 40.88 each addll ac Lights & Trees $238.65/ac up to 5 ac $ 59.66 each add'! ac : Vaea4NOn-SFR.md Parks Lights $ 54.50/ac up to 5 ac $272.50 max Lights & Trees $ 73.29/ac up to 5 ac $366.44 max Lights - A & Trees $184.34/ac up to 5 ac $921.70 max Lights - B & Trees $ 280.69/ac up to 5 ac $1,403.45 max April 8, 2011 Citywide Lighting and Maintenance District PART E PROPERTY OWNERS LIST The property owners list with the names and addresses of each property owner of each lot or parcel, as shown on the Assessment Diagram referenced in Part F herein, is the list of property owners within the District Boundaries as shown on the last equalized roll of the Assessor of the County of Los Angeles and is, by reference, made part of this report. PART F ASSESSMENT DIAGRAM An Assessment Diagram for the Assessment District is on file in the office of the City Clerk. The lines and dimensions of each lot or parcel within the Assessment District are those lines and dimensions shown on the maps of the Assessor of the County of Los Angeles and are, by reference, made part of this report. April 8, 2011 Citywide Lighting arid Maintenance District ENGINEER'S REPORT CITY OF WEST COVINA CITYWIDE LIGHTING AND MAINTENANCE DISTRICT The undersigned respectfully submits the enclosed report directed by the City Council. The undersigned certifies that he or she is a professional Engineer, registered in the State of California. Dated: ,2011 Shannon A. Yauchzee Public Works Director/City Engineer I HEREBY CERTIFY that the enclosed Engineer's Report, together with the Assessment Roll and Assessment Diagram thereto attached, was filed in the Office of the City Clerk on the day of ,2011. City Clerk, City of West Covina County of Los Angeles, California I HEREBY CERTIFY that the enclosed Engineer's Report, together with the Assessment Roll and Assessment Diagram thereto attached, was approved and confirmed by the City Council of the City of West Covina, California, on the day of , 2011. City Clerk, City of West Covina County of Los Angeles, California I HEREBY CERTIFY that the enclosed Assessment Roll was filed with the County Auditor of the County of Los Angeles, on day of , 2011. City Clerk, City of West Covina County of Los Angeles, California ATTACHMENT "C" CITYWIDE LIGHTING AND MAINTENANCE DISTRIC FISCAL YEAR 2011-2012 OPERATING BUDGET DETAIL ESTIMATE OF COSTS L STREET LIGHTING: A. Personnel Services Full Time Salaries and Benefits 2. Overtime Salaries Sub-Total Materials and Services 1. Maintenance Contracts 2. Utilities 3. Supplies & Reprographic Services 4. Vehicle Maint. Gas & Replacement 5. Equipment Replacement 6. Property & Liability Insurance 7. Administration & Overhead Sub-Total STREET LIGHTING TOTAL IL STREET TREES: Personnel Services I. Full Time Salaries and Benefits 2. Overtime Salaries Sub-Total Materials and Services 1. Maintenance Contracts 2. Supplies & Reprographic Services 3. Vehicle Maint. Gas & Replacement 4. Property & Liability Insurance 5. Administration & Overhead Sub-Total TOTAL STREET TREES 68,858 1,456 70,314 4,300 935,000 2,860 5,652 850 1,520 109,317 $1.059,499 $1,129,813 73,059 4,983 78,042 136,200 20,360 8,288 1,436 20,747 $ 187,031 265,073 TOTAL ESTIMATED COSTS $1,394,886 ATTACHMENT "D-1" WEST COVINA CITYWIDE LIGHTING AND MAINTENANCE DISTRICT 10 YEAR FISCAL PROJECTION - RECOMMENDED INCOME GROWTH = FISCAL YEAR 1.9% 10-11 2.0% 11-12 2.0% 12-13 2.0% 13-14 2.00/0 14-15 2.0% 15-16 2.0% 16-17 2.0% 17-18 2.0% 18-19 2.00/0 19-20 ASSESS. INCOME $ 1,470,645 1,500,058 $ 1,530,059 $ 1,560,660 1,591,873 1,623,711 1,656,185 $ 1,689,309 1,723,095 $ 1,757,557 INTEREST $ - $ $ - $ - $ - $ $ _ $ - $ $ 3,793 TRANSFER IN PROM OTHER FUNDS 13,115 $ 13,115 13,115 13,115 1 13,115 13,115 $ 13,115 13,115 $ 13,115 13,115 TREE REMOVAL/TRIMMING $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,001_ TOTAL REVENUES $ 1,488,760 $ 1,518,173 1,548,174 $ 1,578,775 $ 1,609,988 $ 1,636,826 $ 1,669,300 $ 1,702,424 $ 1,736,210 $ 1,774,465 PRIOR YR. BALANCE $ (82,473) $ 12,720 $ 136,007 $ 200,346 $ 280,448 $ 376,777 $ 484,806 _ $ 610,022 $ 752,920 $ 914,010 TOTAL FUNDING $ 1,406,287 $ 1,530,893 $ 1,684,181 $ 1,779,121 $ 1,890,437 $ 2,013,603 $ 2,154,1.06 $ 2,312,445 $ 2,489,130 $ 2,688,475 OPERATING EXP. 1,393,567 $ 1,394,886 $ 1,483,835 $ 1,498,673 $ 1,513,660 $ 1,528,797 $ 1,544,085 $ 1,559,525 $ 1,575,121 $ 1,590,872 C.I.P. $ - $ - $ - $ - $ - $ - $ TOTAL COST $ 1,393,567 $ 1,394,886 $ 1,483,835 $ 1,498,673 $ 1,513,660 $ 1,528,797 $ 1,544,085 $ 1,559,525 $ 1,575,121 $ 1,590,873 CASH BALANCE $ 12,720 $ 136,007 $ 200,346 $ 280,448 $ 376,777 484,806 610,022 _ $ 752,920 914,010 $ 1,097,602 CASH FLOW $ 696,784 $ 697,443 $ 741,917 $ 749,337 $ 756,830 $ 764,398 $ 772,042 $ 779,763 $ 787,560 $ 795,436 OVER/UNDER (684,064) $ (561,436) $ (541,571) (468,888) (380„053) (279,592) $ (162,021) (26,843) $ 126,449 302,166 'TYPICAL ASSESS. FOR SFR I $ 46.80 $ 47.73 $ 48.69 $ 49.66 I $ 50.66 51.67 $ 52.70 $ 53.76 $ 54.83 $ 55.93 ASSUMPTIONS: A). Interest is 3% of the previous year ending balance B). 1% increase in maintenance cost per year due to inflation C). Increase assessment rates by CPI ( 2% max.) annual. EFINITIONS: Amount needed to assure that the district operates in a net positive cash flow position throughout the year to account for the fact that CASH FLOW: the revenues from the levy of assessment is collected twice a year on the property tax bills OVER / UNDER: Amount over or under the desired Cash Flow amount PRIOR YEAR BALANCE: Funds available at the end of the previous fiscal year lOYCWM 2011-2012 TTACHMENT "D-2" WEST COVINA CITYWIDE LIGHTING AND MAINTENANCE DISTRICT 10 YEAR FISCAL PROJECTION INCOME GROWTH = FISCAL YEAR 1.9% 10-11 0.00/c 11-12 0.0°/o 12-13 0.0% 13-14 0.0% 14-15 0.0% 15-16 0.0% 16-17 0.00/c 17-18 0.0% 18-19 0.0% 19-20 ASSESS. INCOME 1,470,645 1,470,645 1,470,645 1,470,645 1,470,645 1,470,645 1,470,645 1,470,645 1,470,645 1,470,645 INTEREST $ - $ - $ - $ $ - $ - $ - $ - $ - $ TRANSFER IN FROM OTHER FUNDS 13,115 $ 13,115 $ 13,115 $ 13,115 $ 13,115 $ 13,115 $ 13,115 $ 13415 $ 13,115 $ 13,115 TREE REMOVAL/TRIMMING $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 S 5,000 $ 5,000 $ 5,001 TOTAL REVENUES $ 1,488,760 $ 1,488,760 $ 1,488,760 $ 1,488,760 $ 1,488,760 1,483,760 1,483,760 $ 1,483,760 $ 1,4-83,760 $ 1,483,760 PRIOR YR. BALANCE $ (82,473) $ 12,720 ' 106,594 $ 111,519 $ 101,606 $ 76,706 $ 31,669 $ (28,655) $ (104,420) $ (195,781) TOTAL FUNDING $ 1,406,287 $ 1,501,480 $ 1,595,354 $ 1,600,279 $ 1,590,366 $ 1,560,466 $ 1,515,429 $ 1,455,105 $ 1,379,340 $ 1,287,979 OPERATING EXP. $ 1,393,567 $ 1,394,886 s 1,483,835 $ 1,498,673 $ 1,513,660 $ 1,528,797 $ 1,544,085 $ 1,559,525 $ 1,575,121 $ 1,590,872 C.I.P. $ - $ $ - $ $ - $ $ $ $ - $ TOTAL COST $ 1,393,567 $ 1,394,886 $ 1,483,835 $ 1,498,673 $ 1,513,660 $ 1,528,797 $ 1,544,085 $ 1,559,525 $ 1,575,121 $ 1,590,873 CASH BALANCE $ 12,720 $ 106,594 $ 111,519 $ 101,606 $ 76,706 $ 31,669 $ (28,655) $ (104,420) $ (195,781) $ (302,894) CASH FLOW $ 696,784 $ 697,443 $ 741,917 $ 749,337 $ 756,830 $ 764,398 $ 772,042 779,763 $ 787,560 $ 795,436 OVER/UNDER $ (684,064) $ (590,849) $ (630,398) $ (647,731) $ (680,124) $ (732,729) $ (800,697) $ (884,183) $ (983,341) $ (1,098,330) TYPICAL ASSESS. FOR SFR $ 46.80 $ 46.80 $ 46.80 $ 46.80 $ 46.80 $ 46.80 $ 46.80 $ 46.80 46.80 $ 46.80 ASSUMPTIONS: Interest is 3% of the previous year ending balance 1% increase in maintenance cost per year due to inflation Increase assessment rates by CPI ( 2% max.) annual. DEFINITIONS: Amount needed to assure that the district operates in a net positive cash flow position throughout the year to account for the fact that CASH FLOW: the revenues from the levy of assessment is collected twice a year on the property tax bills OVER / UNDER: Amount over or under the desired Cash Flow amount PRIOR YEAR BALANCE: Funds available at the end of the previous fiscal year lOYCWM 2011-2012 Property & Liability CITYWIDE LIGHTING AND MAINTENANCE DISTRICT FY 2011-2012 ATTACHMENT "E" Utilities 67.0% . 0.2% Service Contracts Personnel Services 10.1% 10.6% Admin. & Overhead ;40,0W Supplies/Vehicle Gas & Oil 2.7% RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, CONFIRMING THE ENGINEER'S REPORT AND THE PLANS, SPECIFICATIONS, ESTIMATES, DIAGRAM AND ASSESSMENTS CONTAINED THEREIN; ORDERING LIGHTING FIXTURES AND ELECTRICAL CURRENT TO BE FURNISHED FOR LIGHTING FIXTURES AND TO ORDER STREET TREES TO BE INSTALLED AND MAINTAINED IN THE WEST COVINA CITYWIDE LIGHTING AND MAINTENANCE DISTRICT FOR FISCAL YEARS BEGINNING JULY 1,2011 WHEREAS, the City Council of the City of West Covina, California pursuant to the provisions of the "Landscaping and Lighting Act of 1972" and Proposition 218, required a State certified Engineer of said City to make and file a report in writing, presenting certain matters related to the confirmation of the annual assessments in the Citywide Lighting and Maintenance District 2011-2012 and following, as contemplated under the provisions of said Act and Proposition; and WHEREAS, a State certified Engineer, pursuant to such requirements, did make and file such report; and WHEREAS, the City Council preliminarily approved the report on May 3, 2011, and declared its intention to order certain street lighting fixtures and appurtenances to be installed and maintained and electric current to be furnished for lighting fixtures and to order certain street trees to be installed and maintained for the Fiscal Year beginning July 1,2011, and following; and WHEREAS, the City Council fixed June 21. 2011, at the hour of 7:00 p.m. of said day as the time for a public hearing to hear protests at the Council Chambers in the City Hall, 1444 West Garvey Avenue South, in the City of West Covina, California. NOW, THEREFORE, the City Council of the City of West Covina, California, does hereby resolve as follows: SECTION 1. That the City Council does hereby approve, confirm and adopt the Engineer's Report dated April 8, 2011, and does hereby approve and confirm the assessments proposed for said proposed improvements as set forth and referred to in said report, which said report is now on file in the Office of the City Clerk of said City, open to inspection, hereby referred to and made a part here of; and said City Council does hereby also confirm and adopt the respective instruments therein contained and designated therein as SPECIFICATIONS. DIAGRAM AND PLANS, Estimate of Costs and Assessments, all of which, on file as aforesaid, are hereby incorporated herein and made a part hereof. SECTION 2. That said Council does hereby order the said contemplated improvement to be made in accordance with the said PLANS AND SPECIFICATIONS, therefore, so adopted and approved, and does order the determine that the fiscal years referred to in said Resolution of Intention No. 2011-24 shall be and the same are hereby fixed and established as the period commencing on the 1st day of July 2011, as therein set forth; and said Council does hereby levy the said proposed total assessment made to cover the costs and expenses of said improvement upon the respective several subdivisions of land in the assessment district described in said Resolution of Intention No. 2010-23 and fixed and determined by said report, proposed assessment, filed therewith. SECTION 3. That the City Council hereby orders and directs the City Treasurer or others to establish a special fund entitled "West Covina Citywide Lighting and Maintenance District" and place into said Fund all payments of assessments received from the County Tax Collector and payments shall be made out of said special fund only for the purpose set out in the Engineer's Report. ZARESOLUTION - 20111CWD PH Rest) 2011-2012.cloc SECTION 4. That the levy and collection of the assessment is statutorily exempt from CEQA as it is for operating expenses and equipment and supplies. SECTION 5. That the City Clerk of the said City is hereby ordered to transmit, or cause to be transmitted to the County Auditor of Los Angeles County, State of California, the Diagram and Assessments upon which such levy is based, and the County Tax Collector of said County (who is also the City Tax Collector for said City) is hereby designated, required, empowered, authorized, instructed, ordered and directed to make collection of all assessments shown in said Assessment and to perform the acts and duties as required by law of and to performed by the officer, employee, or person so designated. SECTION 6. That the City Clerk shall certify to the adoption of this resolution. PPROVED AND ADOPTED this 21 st day of June 201 Mayor Steve Herfert ATTEST: ity Clerk Laurie Carrico I LAURIE CARRICO, CITY CLERK of the City of West Covina, California, do hereby certify that the foregoing resolution was duly adopted by the City Council of the City of West Covina, California, at a regular meeting thereof held on the 21't day of June 2011, by the following vote of the City Council: AYES: NOES: ABSENT: City Clerk Laurie Carrico APPROVED AS TO FORM: City Attorney Arnold Alvarez-Glasman ZARESOLUTION - 20 I 11C.WD P11 Res° 201 1-2012.doc