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HomeMy WebLinkAbout10. Adopt Reso-Lighting and Landscaping Assessment Dist 121 FY 2018-19Item TO: HONORABLE MAYOR ASHTON AND MEMBERS OF THE CITY FROM OFFICE OF THE CITY MANAGER Y: EDWIN J. NORRIS, P.E., INTERIM DIRECTOR OF PUBLIC ORK DATE: MAY 22, 2018 SUBJECT LIGHTING AND LANDSCAPING DISTRICT, ASSESSMENT DISTRICT 121, FISCAL YEAR 2018-2019 RECOMMENDATION That the City Council: ADOPT RESOLUTION OF THE CITY Ci OF OF DOWNEY APPROVING THE ENGINEER'S REPORT FOR ASSESSMENTS WITHIN THE LIGHTING AND LANDSCAPE DISTRICT,DISTRICT 121 FOR FISCAL YEAR 2018-2019; and There are approximately 6,514 street lights which provide illumination for vehicular traffic and pedestrian safety in the City. Of said total, 2,015 street lights are owned by the City, 57 are owned by Caltrans, 33 are shared with other municipalities, and 4,409 are owned by Southern California Edison Company (SCE). Similarly, the City has a total of 113 traffic signals, including 11 that are operated and maintained by Caltrans and 12 that are shared with adjoining agencies. The City also has a total of 12 (six pair) flashing beacons and 24 solar -powered vehicle speed feedback signs. The cost for maintaining and servicing the street lights, flashing beacons, vehicle speed feedback signs, and traffic signals is paid from a combination of assessments on individual parcels under Lighting and Landscaping Assessment District 121, originally established by the City Council on July 18, 1978, as well as revenues from general property taxes. These assessments appear on the County property tax bills. Funding for on -street landscaping maintenance is also paid from direct assessments under the same Act. This assessment provides funds for tree trimming, tree removals, and other landscaping maintenance along the parkways and medians of public streets in the City of Downey. Lighting c Landscaping Assessment District May 22, 2018 rFIIRa Pursuant to the adoption of Resolution No. 18-7783 by the City Council on February 27, 2018, the Engineer's Report for Fiscal Year 2018-19, attached hereto as Exhibit "A", is complete and ready to be forwarded to the City Council for consideration and approval. The Engineer's Report contains the methodology used to determine the assessment rates of the various zones within Lighting & Landscaping Assessment District 121 for the subsequent fiscal year based on the total number of dwelling units (for residential uses), the total square footage (for non-residential uses) and the total projected expenditures within each zone. A total of 79 residential dwelling units will be added to Zone l and five commercial parcels consisting of a total of 38,730 in additional retail space will be added to Zone II of the district during this fiscal year. Of the 79 new residential multi -family dwelling units, 16 units are located at 8139 Fourth Street, 39 units are located at 7940 Telegraph Road and 24 units are located at 9553 Firestone Boulevard. The five additional commercial parcels are located at 14434 Downey Avenue (10,210 SF), 14424 Downey Avenue (8,300 SF), 8307 Iowa Street (7,900 SF), 11022 Downey Avenue (10,420 SF) and 11100 Downey Avenue (1,900 SF). A list of the 79 residential properties and five commercial properties to be added to the district is included in Appendix "C" of the attached Engineer's Report. For purposes of calculating the assessments, the District is divided into seven zones. A summary of the zones, including the maximum assessment rate for individual residential parcels and commercial areas, is provided in Table 1. i r• • - • AT Zone Description Lights Funding Maximum Sources Assessment Lighting of public roadways General $21.41/du (1-20 units) I adjacent to residential properties, 4,139 Property $10.70/du (21-60) but not including motels and Tax; Direct $5.35/du (61-109) hotels. Assessment $2.68/du (110-460) Lighting of public roadways General $114.90/10 ksf H. adjacent to commercial and 1,734 Property (1-200 ksf) industrial properties. Tax; Direct $38.30/10 ksf Assessment (200 ksf+) 489 Safety Residential: Lighting of public roadways at Lights 113 Traffic Direct $18 .80/du (1-4 units) Ill, intersections, including traffic Signals Assessment $11.28/du (5+) signals, throughout the City. 12 Beacons Commercial/Industrial: 24 VSF si ns $37.35/10 ksf For installation of new lighting in General Property IV; Zones I and II as requested by N/A Tax; Direct Varies by Location petition. Assessment 4 Lighting & Landscaping Assessment District 121 May 22, 2018 Energy costs area combination of SCE charges. SCE utilizes an "LS" rate schedule for street lights, with rates for SCE -owned lighting (LS -1) higher than for City -owned equipment (LS -2 & LS -3). The SCE "OL -1" rate is for non -highway area lighting, whereas the "TC -1" rate schedule applies to traffic control signals and corresponding intersection lighting. -A conservative estimated 5% increase in energy rates was assumed for calendar year (CY) 2018 and are summarized below in Table 2 along with the actual rates during CY 2017. General CY 2018 V Lighting of public roadways next to 99 Property $21.28/10 ksf Regional Shopping Center Tax; Direct Street Lights (LS -1, LS -2, and Assessment Lighting of public roadways next to General 8.3 commercial properties on north Property 6.8 side of Firestone BI. from Old Tax; Direct Traffic Signals (TC -1) VI, River School Rd to the West City 53 Assessment $45.47/10 ksf Limit, and on south side of Firestone BI. from 250 feet west of Arnett St. to the West _Cit Limit. Direct Residential Landscaped maintenance along Assessment $7.32/du (1-4"units) L, public streets and right-of-way. N/A $4.40/du (5+) Commercial/Industrial: $14.10/10 ksf ksf = T, 000 square feet; du =dwelling unit, N/A = Not A plicable ELECTRICITY RATES: Energy costs area combination of SCE charges. SCE utilizes an "LS" rate schedule for street lights, with rates for SCE -owned lighting (LS -1) higher than for City -owned equipment (LS -2 & LS -3). The SCE "OL -1" rate is for non -highway area lighting, whereas the "TC -1" rate schedule applies to traffic control signals and corresponding intersection lighting. -A conservative estimated 5% increase in energy rates was assumed for calendar year (CY) 2018 and are summarized below in Table 2 along with the actual rates during CY 2017. As indicated in Table 3, the estimated cost for operating, maintaining and upgrading the street lighting and landscaping in all seven zones for FY 2018-2019 is $1,962,339, a $8,705 increase over the FY 2017-2018 adopted budget amount of $1,953,634. Current and anticipated SCE energy rates are incorporated into the FY 2018-2019 cost estimates for all zones. Table 3 also provides historical expenses by zone. In Zone I, costs are expected to increase by $72,846 in FY 2018-19 compared to the current fiscal year due to a proposed street lighting project adjacent to the 1-5 Freeway near Florence Avenue. However, a positive balance in this zone by June 30, 2019 can be sustained without the need fora rate increase in this zone. Despite an estimated cost decrease in Zone III, a negative balance in this zone by June 30, 2018 remains. ki CY 2017 CY 2018 % Increase Actual Estimated Street Lights (LS -1, LS -2, and OL -1 7.9 8.3 5 Street Lights (LS -3) 6.8 7.1 5 Traffic Signals (TC -1) 14.0 14.7 5 As indicated in Table 3, the estimated cost for operating, maintaining and upgrading the street lighting and landscaping in all seven zones for FY 2018-2019 is $1,962,339, a $8,705 increase over the FY 2017-2018 adopted budget amount of $1,953,634. Current and anticipated SCE energy rates are incorporated into the FY 2018-2019 cost estimates for all zones. Table 3 also provides historical expenses by zone. In Zone I, costs are expected to increase by $72,846 in FY 2018-19 compared to the current fiscal year due to a proposed street lighting project adjacent to the 1-5 Freeway near Florence Avenue. However, a positive balance in this zone by June 30, 2019 can be sustained without the need fora rate increase in this zone. Despite an estimated cost decrease in Zone III, a negative balance in this zone by June 30, 2018 remains. ki Lighting & Landscaping Assessment District 121 May 22, 2018 The assessment rates can be adjusted up or down on an annual basis as long as the rates do not exceed the maximum established rates. The adjustments are made to ensure adequate funding to cover anticipated costs. Since FY 2010-2011, a number of assessment rate increases and decreases have been made. A history of the rates since FY 2010-2011, as well as the proposed rates and the full assessments for the seven zones are presented in Table 4 on page 6 of this report. Overall, costs to operate, maintain and upgrade the District are expected to increase in FY 2017-2018. With a lack of revenue growth from additional sources (general property taxes and interest income) and additional properties joining the District in Zones I and II only, there are still inadequate fund reserves as indicated for Zones II, III, VI and L (see Table 5 on page 7), thus necessitating the maximum assessment rate levels for these zones (see Table 4). The number of residential properties contributing to Zone I has increased by three parcels during the current FY 2017-2018, which include a total of 79 multi -family dwelling units located at 8139 Fourth Street (16 units), 7940 Telegraph Road (39 units) and 9553 Firestone Boulevard (24 units). General property taxes allocated to this zone result in a projected positive fund balance through the end of FY 2018-2019. As previously indicated, the city is proposing a capital improvement project involving the installation of pedestrian safety lighting along a recently -constructed sidewalk adjacent to the 1-5 Freeway between Fairford Avenue and Cecilia Street. Even with the estimated cost of the aforementioned lighting project deducted from the Zone I balance, the City will not collect any assessment revenue from property owners located in Zone I due to the relatively high current balance within this zone. The number of commercial properties contributing to Zone II has increased by five parcels during the current FY 2017-2018 involving a total of 38,730 additional square feet of retail space located at 14434 Downey Avenue (10,210 SF), 14424 Downey Avenue (8,300 SF), 8307 Iowa Street (7,900 SF), 11022 Downey Avenue (10,420 SF) and 11100 Downey Avenue (1,900 SF). 11 FY 2018-19 FY 2017-18 FY 2016-17 FY 2015-16 FY 2014-15 Proposed Adopted Actual Actual Actual Bud et Bud et Zone I $467,600 $394,754 $316,684 $354,406 $347,874 Zone II $249,680 $285,053 $214,773 $316,606 $215,935 Zone III 1 $647,339 $676,287 $844,001 $766,569 $729,340 Zone IV $75 $75 $75 $75 $714 Zone V $2,575 $2,575 $2,513 $12,1251 $3,093 Zone VI $6,425 $6,425 $5,901 $6,115 $7,752 Zone L $588,465 $588,465 $537,,195 $559,263 $385,708 Total $1,962,339 $1,953,634 ` $1,921-,142 $2 015,159 $1,690,416 ASSESSMENT RATES: The assessment rates can be adjusted up or down on an annual basis as long as the rates do not exceed the maximum established rates. The adjustments are made to ensure adequate funding to cover anticipated costs. Since FY 2010-2011, a number of assessment rate increases and decreases have been made. A history of the rates since FY 2010-2011, as well as the proposed rates and the full assessments for the seven zones are presented in Table 4 on page 6 of this report. Overall, costs to operate, maintain and upgrade the District are expected to increase in FY 2017-2018. With a lack of revenue growth from additional sources (general property taxes and interest income) and additional properties joining the District in Zones I and II only, there are still inadequate fund reserves as indicated for Zones II, III, VI and L (see Table 5 on page 7), thus necessitating the maximum assessment rate levels for these zones (see Table 4). The number of residential properties contributing to Zone I has increased by three parcels during the current FY 2017-2018, which include a total of 79 multi -family dwelling units located at 8139 Fourth Street (16 units), 7940 Telegraph Road (39 units) and 9553 Firestone Boulevard (24 units). General property taxes allocated to this zone result in a projected positive fund balance through the end of FY 2018-2019. As previously indicated, the city is proposing a capital improvement project involving the installation of pedestrian safety lighting along a recently -constructed sidewalk adjacent to the 1-5 Freeway between Fairford Avenue and Cecilia Street. Even with the estimated cost of the aforementioned lighting project deducted from the Zone I balance, the City will not collect any assessment revenue from property owners located in Zone I due to the relatively high current balance within this zone. The number of commercial properties contributing to Zone II has increased by five parcels during the current FY 2017-2018 involving a total of 38,730 additional square feet of retail space located at 14434 Downey Avenue (10,210 SF), 14424 Downey Avenue (8,300 SF), 8307 Iowa Street (7,900 SF), 11022 Downey Avenue (10,420 SF) and 11100 Downey Avenue (1,900 SF). 11 Lighting & Landscaping _ District May 22, 2018 As of June 30, 2018, a negative balance of $250,251 in Zone II is anticipated (see Table 5). At this time, all commercial properties in Zone II are charged the maximum set rates. In addition, the estimated FY 2018-2019 costs for street lighting maintenance and operations will leave this zone with an estimated negative balance of $41,891 through the end of FY 2018-2019, therefore necessitating the maximum rate in order to minimize the negative fund balance in this zone through the end of FY 2017-2018 to the extent possible. In Zone III, increasing traffic signal, flashing beacon and vehicle speed feedback sign maintenance costs have resulted in a negative balance over the past several years. As of June 30, 2018, a negative balance of $645,140 is anticipated (see Table 5). At this time, both residential and commercial properties in Zone III are charged the maximum set rates and Zone III receives no property tax revenue. In addition, the estimated FY 2018-2019 costs for the maintenance of traffic signals, flashing beacons and vehicle speed feedback signs will leave this zone with an estimated negative balance of $582,149 through the end of FY 2018-2019. For Zone L, with hundreds of trees planted or to be planted as part of street widening, median, and streetscape projects on major streets (Lakewood Boulevard, Paramount Boulevard, etc.) either recently completed or proposed, landscape maintenance costs are continuing to increase. As of June 30, 2018, a negative balance of $1,909,938 is anticipated (see Table 5). At this time, both residential and commercial properties in Zone L are charged the maximum set rate and this zone also receives no property tax revenue. In addition, the FY 2018-2019 costs for trimming, removal and planting of trees and landscape maintenance within the public right-of- way will leave this fund with an estimated negative balance of $2,223,786 through the end of FY 2018-2019. Due to running negative balances in various zones over the past several years, the District has been subsidized by the General Fund from time to time and, in order for the District to operate in a self-sustaining manner, Zones 11 111, VI and L will require rate increases through a Proposition 218 proceeding. A more detailed summary of the funding breakdown, operational cost, and fund balances is provided in the Engineer's Report. I•'i:11�T`Ce33* 1A ► : Pursuant to the Landscaping and Lighting Act of 1972, the City collects assessments for lighting improvements, maintenance and energy costs; traffic signal maintenance and energy costs, and landscaping maintenance of public trees on City streets and rights-of-way. Direct assessments are distributed based on the special benefit each property receives. Since streets provide vehicular and pedestrian access to properties, the special benefit is apportioned based on the number of trips generated by each parcel. The California Streets and Highways Code requires the City Council to adopt resolutions and hold a public hearing each year to set the assessment rates for the various zones within the Lighting and Landscaping Assessment District for the ensuing year. From these rates, assessments are calculated and levied against the properties in the District. The City coordinates with the Los Angeles County Auditor -Controller's Office to include applicable assessments and adjustments on property tax bills in order to collect the assessment revenue. 9 Lighting & Landscaping Assessment District 121 May 22, 2018 ASSESSMENT 18-19 17-18 16-17 15-16 14-15 13-14 12-13 11-12 10-11 MAX. ZONES (Prop.) Zonel 1-20 units ($/DU) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $21.41 21-60 units ($/DU) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $10.70 61-109 units ($/DU) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $5.35 110-460 units ($/DU) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $2.68 Zone 11 1-200,000 s.f. ($/1 Oksf) $114.90 $114.90 $50.69 $16.43 $16.43 $54.99 $16.43 $16.43 $37.10 $114.90 200,001+ s.f. ($/1 Oksf) $38.30 $38.30 $16.91 $5.48 $5.48 $18.33 $5.48 $5.48 $12.37 $38.30 Zone III 1-4 units ($/DU) $18.80 $18.80 $18.80 $18.80 $18.80 $18.80 $18.80 $18.80 $18.80 $18.80 5+ units ($/DU) $11.28 $11.28 $11.28 $11.28 $11.28 $11.28 $11.28 $11.28 $11.28 $11.28 all sizes ($/10ksf) $37.35 $37.35 $37.35 $37.35 $37.35 $37.35 $37.35 $37.35 $37.35 $37.35 Zone IV (N/A) - -- - -- -- - - -- -- -- Zone V all sizes ($/1 Oksf) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $21.28 Zone VI all sizes ($/`!Oksf) $45.47 $45.47 $45.47 $45.47 $45.47 $45.47 $45.47 $45.47 $45.47 $45.47 Zone L 1-4 units ($/DU) $7.32 $7.32 $7.32 $7.32 $7.32 $7.32 $7.32 $7.32 $7.32 $7.32 5+ units ($/DU) $4.40 $4.40 $4.40 $4.40 $4.40 $4.40 $4.40 $4.40 $4.40 $4.40 all sizes ($/`!Oksf) $14.10_ $14.10 $14.10 1 $14.10 $14.10 $14.10 $14.10 $14.10 1 $14.10 � $14.10 Prop. = proposed, DU = dwelling unit, s.f = square feet, ksf = thousand square feet Im Lighting & Landscaping Assessment District 121 May 22, 2018 To pay for the FY 2018-2019 expenses, it is estimated that the District will use $744,434 in general property tax funds designated specifically for street light operations and maintenance, $1, 100 in interest earned from reserves in the Street Lighting Fund, and $1,319,343 from the direct assessments. Table 5 provides a summary of the funding sources, estimated costs and year-end balance for FY 2017-2018 and the projected costs and funding sources for FY 2018- 2019. Although other sources of revenue such as rental, interest, and property taxes will continue to be used to pay for expenditures in the District, none of the proposed collections will exceed the maximum assessment rates. Attachments. - Resolutions (2) Exhibit "A" - Engineer's RepwA W Zone I Zone 11 Zone III Zone IV Zone V Zone VI Zone L Total BALANC 224,443 (526,065) j 350,227 93,264 (16,389)1 (1,330,404)J 773,118 IFY 2016120 Interest Earned (4,809) (1.062) (191) (66) (6,128) Pro2eTax 527,149 116445 _20205 7,207 671,706 Funds Available 2,500,382 339,826 (526,065) 370,941 100,405 (16,389) (1,330,404) 1,438,696 Assessment Levy - 134759 696,170 - 8,523 271,379 1,110,831 Funds+ Levy 2,500,382 474,585 170,105 370,941 100,405 (7,866) (1,059,025) 2,549,527 ExaLnditures 316,684 288815 844001 75 2 513 5901 537195 1, 995184 BALANCE AS OF 6130117 2,183,698 185,770 (673,896) 370,866 97,892 (13,767) (1,596,220) 554,343 IFY 2017/2018 Est. Interest Earned 863 191 34 12 1,100 Est. Proti Tax 562,624 137,087 22,445 7,680 729,836 Est. Funds Available 2,747,185 323,047 (673,896) 393,346 105,584 (13,767) (1,596,220) 1,285,279 Est. Assessment Levy 27228 705,043 9,158 274,747 1.261,536 Est Funds + Levy 2,747,185 595,635 31,147 393,346 105,584 (4,609) (1,321,473) 2,546,815 Bud et Re oast 114 754 845 886 676 287 75 2 575 6425 11,1411 2 514 467 BALANCE AS OF 6130118 2,352,431 (250,251) (645,140) 393,271 103,009 (11,034) (1,909,938) 32,348 IFY 201812019 Est. Interest Earned 863 191 34 12 1,100 Est. Pro Tax 573,877 139,829 22,894 71834 744,434 Est. Funds Available 2,927,171 (110,231) (645,140) 416,199 110,855 (11,034) (1,909,938) 777,882 Est, Assessment Levy 318,200 710,330 161961 274,617 1219,343 Est. Funds+ Levy 2,927P171 207,969 65,190 416,199 110,855 5,162 (1,635,321) 2,097,225 Bud etRe uest 467 600 249 1 860 6471339 75 2,575 6 425 588 465 1,962,339 11BALANCEAS OF 6130119 2,459,571 (41,891)1 (582,149) 416,124 108,280 (1,263)1 (2,223,788 6) 1 134,886 To pay for the FY 2018-2019 expenses, it is estimated that the District will use $744,434 in general property tax funds designated specifically for street light operations and maintenance, $1, 100 in interest earned from reserves in the Street Lighting Fund, and $1,319,343 from the direct assessments. Table 5 provides a summary of the funding sources, estimated costs and year-end balance for FY 2017-2018 and the projected costs and funding sources for FY 2018- 2019. Although other sources of revenue such as rental, interest, and property taxes will continue to be used to pay for expenditures in the District, none of the proposed collections will exceed the maximum assessment rates. Attachments. - Resolutions (2) Exhibit "A" - Engineer's RepwA W RESOLUTION NO. 18- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY APPROVING THE ENGINEER'S REPORT FOR ASSESSMENTS WITHIN LIGHTING AND LANDSCAPING DISTRICT, ASSESSMENT DISTRICT 121, FOR FISCAL YEAR 2018-2019. WHEREAS, by said Resolution No. 18-7783, the City Council ordered an Engineer's Report be prepared in accordance with Section 22565 of the California Streets and Highway Code; and WHEREAS, the City Council has now reviewed and examined the Engineer's report attached hereto as Exhibit "A". NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY DOES • AS FOLLOWS: SECTION 1. The Engineer's report, attached hereto as Exhibit "A", prepared pursuant to Resolution No. 18-7783, and filed with the City Clerk on the 22nd day of May, 2018, is hereby approved. SECTION 2. The City Clerk shall certify to the adoption of this Resolution. APPROVED AND ADOPTED this 22nd day of May, 2018. SEAN ASHTON, Mayor ATTEST' MARIA ALICIA DUARTE, CMC City Clerk I HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of the City of Downey at a regular meeting held on the22nd day of May, 2018 by the following vote, to wit: AYES: Council Members: NOES: Council Member: ABSENT: Council Member: ABSTAIN: Council Member: MARIA ALICIA DUARTE, CMC City Clerk RESOLUTION i RESOLUTIONOF • • ' OF • INTENTIONDECLARING ITS • LEVY ANDCOLLECTAND LANDSCAPING ASSESSMENTS WITHIN THE LIGHTING D LANDSCAPING DISTRICT, ASSESSMENT DISTRICT 121, FOR FISCA YEAR t AND SET A PUBLIC HEARINGFOR • PROPOSEDTHE WHEREAS, the City Council by Resolution No. 18=7783, proposed to levy and collect assessments within the Lighting and Landscaping District, Assessment District 121 (District) pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code; and WHEREAS, by said Resolution No. 18=7783, the City Council ordered the Director of Public Works to prepare and file an Engineer's report for the District for the Fiscal Year 2017- 2018 pursuant to the Landscaping and Lighting Act of 1972 per Section 22565 of the California Streets and Highways Code; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY DOES RESOLVE AS • i SECTION 1. That in order maintain and service street lighting facilities and on -street and public facilities landscaping within the District for Fiscal Year 2018-2019, it is the intention of the City Council of the City of Downey to levy and collect assessments pursuant to the provisions of the Landscaping and Lighting Act of 1972 (Part 2 of Division 15 of said Code). SECTION 2. That the maintenance and servicing of the public lighting facilities in, on and along public streets and places within the District will be, in the opinion of the City Council of the City of Downey, to the benefit of the assessable properties within the District. Assessable properties are those within the District that have been annexed into the District by previous resolutions caused by voluntary installation of street lights and by requirements of various planning cases or Section 8002 of the Downey Municipal Code. SECTION 3. That the maintenance and servicing of the landscaping in, on and along public streets and places within the District will be, in the opinion of the City Council of the City of Downey, to the benefit of the assessable properties within the District. Assessable properties are those within the District known as Zone Ill. SECTION 4. That reference hereby is made to the report of the Engineer on file with the City Clerk and available for public inspection, of the proposed assessments upon assessable lots and parcels of land within the District, including changes from the previous fiscal year's assessment and assessable lots. SECTION 5. That assessments for all zones will be less than, or equal to, the maximum assessments. SECTION 6. Notice is hereby given that on June 12, 2018, at 6:30 p.m., in the Council Chambers of Downey City Hall located at 11111 Brookshire Avenue, Downey, California, all interested persons may appear before the City Council and be heard concerning the services to be performed, the proposed assessment and all other matters relating thereto. Protests must be in writing and must be filed with the City Clerk prior to the conclusion of the hearing. Any such protest shall state all grounds of the objection, and if filed by the property owner, shall contain a description sufficient to identify the property. SECTION 7. The City Clerk shall cause notice of the hearing to be given by causing the Resolution of Intention to be published, posted, and mailed in the manner required by Part 2 of Division 15 of the Streets and Highways Code. SECTION 8. The City Clerk shall certify to the adoption of this Resolution. SEAN • Mayor ATTESTa MARIA ALICIA DUARTE, CIVIC City Clerk I HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of the City of Downey at a regular meeting held on the 22 nd day of May, 2017, by the following vote, to wit: AYES: Council Members: NOES: Council Member: ABSENT: Council Member: ABSTAIN: Council Member: MARIA ALICIA DUARTE, CIVIC City Clerk K DescriptJon, Page Introduction 3 Purpose 3 Plans and Specifications 3 Diagram of District 3 Zones 4 Estimate of Cost 5 Assessment Levy (Appendix A) A-1: Zone I — Residential 6 A-2: • 11 — Commercial 7 A-3: Zone III — Safety • and Traffic • 8 A-4: • IV — Petition • 10 A-5: • V — Regional Shopping Center 11 A-6- Zone VI — Commercial West Firestone Boulevard 12 A-7: Zone L — On -Street and Facility Landscaping 13 Financial Summary (Appendix B) 14 Properties Added (Appendix C) 15 This Engineer's Report for the Lighting and Landscaping District, Assessment District 121 (A.D. 121) is prepared for filing in accordance with Division 15, Part 2, Chapter 3 of the California Streets and Highways Code, as amended by 1992 legislation (S.B. 1977) and California Proposition 218. The purpose of this report is to identify the nature, location, and extent of street lighting and landscaping improvements and maintenance to be considered. Estimated costs and proposed apportionment to accomplish the levy of annual street lighting and landscaping assessments are given for Fiscal Year 2018-2019. 4 11,11P• I, Pursuant to the Landscaping and Lighting Act of 1972, the City collects assessments for lighting and landscaping improvements and maintenance. The design of traffic signal equipment is pursuant to applicable State of California and Standard Plans and Specifications. The plans and specifications used to design the street lighting equipment are pursuant to the Illuminating Engineering Society for street lighting and City of Downey standards. 10 - • 6 Plan No. A. D. 121-B (Plan) of A. D. 121 is on file in office of the City Clerk showing the exterior boundary of the District and the boundaries of each zone within the District. By reference, said Plan is made part of this Report. The lines and dimensions of each parcel of land within the District are shown in the County Assessor's Maps on file at the Downey City Hall. Each parcel is designated by its corresponding book, page, and parcel number as shown in the Los Angeles County Assessor's maps and data rolls. All properties in Zone III are also in Zone L. Properties to be added to the District boundaries during fiscal year 2017-2018 are listed in Appendix "C" of this Report. Page 3 The application of these standards are used to conform to the adjacent land use grouped by individual zones and City account numbers as follows: For lighting of public roadways adjacent to residential properties, including apartments and condominiums, but not including motels or hotels. For energy and maintenance, including replacement of damaged or obsolete lights, and administrative costs. RMITWOTIO, For lighting of public roadways adjacent to commercial, including motels and hotels, and industrial properties. For energy and maintenance, including replacement of damaged or obsolete lights, and administrative costs. For lighting of public roadways including: at intersections throughout the City; adjacent to City, County, and State public lands; freeway corridor security lighting; and freeway frontage roadways, not including on/off ramps. For traffic signals on City streets, including the City's share of costs per agreements with L.A. County, Caltrans or neighboring cities for traffic signals of shared intersections. For energy and maintenance costs, including replacement of damaged or obsolete signals and lights, installation of new signals and lighting, and administrative costs. VT M. For installation of new lighting within Zones l and 11, requested by petition of the majority of property owners within a specific area, and administrative costs. Energy and maintenance costs for lights installed under this Zone are paid from either Zone I or II, as determined by property use. For lighting of public roadways adjacent to the Stonewood Regional Shopping Center. For energy and maintenance, including replacement of damaged lights, and administrative costs. For lighting of public roadways adjacent to the commercial properties along the north side of Firestone Boulevard from Old River School Road to the west City limits, and the south side of Firestone Boulevard from approximately 250 feet west of Arnett Street to the west City limits. For energy and maintenance, including replacement of damaged lights and administrative costs. • For tree trimming, replacement, removals, and other landscaping maintenance along the parkways and medians of public street rights-of-way, including administrative costs. The estimated cost of installing, maintaining, and servicing all existing and proposed improvements, including all administrative costs for Fiscal Year 2018-2019 is $1,962,339. The total direct assessment levy for A.D. 121 is $1,319,343. Additional revenues from general property taxes and interest income are estimated at $744,434 and $1,100, respectively. Any remaining costs in individual zones are paid from reserves. Appendices "A-1" through "A-7"provide details of the assessment rates for each Zone. Appendix "B" is a summary of the estimated income and expenses by Zone. Edwin J. No is, .E.g Interim Director of Public Works Page 5 IZI-Ig Date LIGHTING AND LANDSCAPING DISTRICT A.D. 121 FISCAL YEAR 2018-2019 MA Masi 0 IMW:j*--j INgh" I Direct assessments in Zone I are distributed based on the special benefit each property receives. Streets within this zone have been improved with mid -block lighting. Since streets provide vehicular and pedestrian access to properties, the special benefit is apportioned based on the amount of these trips generated by each parcel. The Institute of Transportation Engineers has established a standard of trip generation that states that multiple dwelling units generate less pedestrian and vehicle trips than single family homes. Therefore, parcels with denser housing are assessed at a lesser rate per dwelling unit in general proportion to the trips generated. This basis provides an equitable relationship to the benefit received. ASSESSMENT RATE ($/D.U.) Density Total Density (No. of No. of Dwelling Rate Total D.U. per Parcel) Parcels Units D.U. $/D.U. Amount 1-20 units 14,109 13,268 $0.00 $0 21-60 units 43 1,483 $0.00 $0 61-109 units 11 937 $0.00 $0 110-460 units 2 658 $0.00 $0 Total: 14,165 16,346 $0 ASSESSMENT RATE ($/D.U.) Density Maximum (D.U./Parcel _ FYI 8-19 FYI 7-18 FY16-17 FYI 5-16 -- Rate 1-20 units $0.00 $0.00 $0.00 $0<00 $21.41 21-60 units $0:00 $0.00 $0.00 $0.00 $10.70 61-109 units $0.00 $0.00 $0.00 $0.00 $5.35 110-460 units $0.00 $0.00 $0.00 $0.00 $2.68 Number of Lights in Zone I City Owned: 740 SCE Owned: 3,399_ Total No. of Lights: 4,139 Page "6 1 LIGHTING AND LANDSCAPING DISTRICT D FISCAL YEAR 2018-2019 Direct assessments in Zone 11 are distributed based on the special benefiteach property receives. Streets within this zone have been improved with mid -block lighting. Since streets provide vehicular and pedestrian access to commercial properties, the special benefit is apportioned based on the amount of these trips generated by each parcel. The Institute of Transportation Engineers has established a standard of trip generation that states that pedestrian and vehicle trips increase as the square footage of the land use increases. In general, larger parcels generate more trips. Therefore, every parcel in this zone is assessed according the land square footage of the parcel. This basis provides an equitable relationship to the benefit received. Density (s.f. No. of Total Area Rate per arcel Parcels .f.) ($/10ksg Total Amount 1-200;000 s.f. 858 23,261,741 $114.90 $267,277 200,001+ 33 13,290,589 $38.30 $50,903 Total: 890 36,475,402 $318,200 ASSESSMENT RATE ($/10ksf) Density Maximum s.f./ arcel) FY18-19 FYI 7-18 FY16-17 FY15-16 Rate 1-200,000 s.f: $114.90 $114.90 $50.69 $50.69 $114.90 200,001+ $38.30 $38.30 $16.91 $16.91 $38.30 Number of Lights in Zone 11 City Owned; 938 SCE Owned`: 796 Total No. of Lights: 1,734 Page 7 LIGHTING AND LANDSCAPING DISTRICT A.D. 121 FISCAL YEAR 2018-2019 $710,310 • i. ASSESSED.. Direct assessments in this zone are separated according to the proportion of residential and commercial properties in the City. Since streets provide vehicular and pedestrian access to properties, the special benefit is apportioned based on the amount of these trips generated by each parcel. Given that residential and commercial properties generate different levels of street use, the assessment rates are calculated separately. Approximately 75% of the City is zoned Residential, while the remaining 25% is comprised of Commercial, Industrial, or other. RESIDENTIAL (75%) _ $544,373 TO BE ASSESSED Direct assessments in Zone III -Residential are distributed based on the special benefit each property receives. Parcels are assessed similar to Zone I. Density (No. of D.U. per Trips per Rate Rate Total -farcell Total Units D.U. $;Tri $/D.U.1 Amount 1-4 units 23,097 10 $1.88 $18.80 $434,224 5+ units 9,765 6 $1.88 $11.28 $110,149 32,799 $544,373 ASSESSMENT RATE ($/D.U.) Density (No. of D.U. per Maximum Parcel) FY18-19 _ _ FY17-18 FY16-17 FY15-16 Rate 1-4 units $18.80 $18.80 $18.80 $18.80 $18.80 5+ units $11.28 $11.28 $11.28 $11.28 $11.28 Page 8 LIGHTING AND LANDSCAPING DISTRICT A.D. 121-. FISCAL YEAR 2018-2019 Direct assessments in Zone Ill -Commercial are distributed based on the special benefit each property receives. Parcels are assessed similar to Zone 11. Rate Total Land Area $110ksD Amount 44,432,984 $37.35 $165,957 ASSESSMENT RATE ($/10 ksf) Maximum _P2nsityjs.!./parcelj FY18-19 FY17-18 FY16-17 FY15-16 Rate all sizes (s.f.) $37.35 $37.35 $37.35 $37.35 $37.35 Number of Safety Lights in Zone III State Owned: 57 City -Owned., 489 City -Others (Shared): 33 Total No. of Lights, 579 Number of Traffic Signals in Zone III City -Owned: 91 City -Others (Shared):__ 22 Total, 113 Number of Vehicle speed feedback Signs in Zone III Total: W, Number of Flashing Beacons in Zone III City -Owned: 12 City -Others (Shared): 0 Total'. 12 Page 9 LIGHTING AND LANDSCAPING DISTRICT A.D. 121 FISCAL YEAR 2018-2019 Mal Direct assessments in Zone IV are limited to street light installations only. The installation costs are divided evenly among the parcels within the annexed area. Each annexed area is assessed separately with costs divided equally among the parcels in the annexed area. City engineering design and overhead: Total to install: UNUMM- M -1 1-M-1 FA 12 M, M- AND LANDSCAPING DISTRICT A.D. 121 FISCAL YEAR 2018-2019 PrIkel � I 9MWECI 1010 V-11 im m us ;d W 19 !AQQJD�BE ASSESSED Direct assessments in Zone V are distributed based on the special benefit to the Stonewood Regional Shopping Center. Streets adjacent to this zone have been improved with mid -block lighting. Every parcel adjacent to these streets is assessed on land square footage in the same manner as Zone 11. Rate Land Area (s.f.) ($/10 ksg Total Amount 2,659,684 $0.00 $0.00 ASSESSMENT RATE ($/10ksf) -Density (s.f./parcel) FY1 8-19 FY17-18 FYI 6-17 FY15-16 Rate all sizes (s.f.) $0.00 $0.00 $0.00 $0.00 $21.28 Number of Liqhts in Zone V City Owned: 64 SCE Owned', 35 Total No. of Lights* 99 Page 11 LIGHTING AND LANDSCAPING DISTRICT A.D. 121 FISCAL . 1_ �1_6,196 TO BE ASSESSED Direct assessments in Zone VI are distributed based on the special benefit to the properties on Firestone Boulevard (commercial properties on the north side of Firestone Blvd. from Old River School Road to the West City Limit, and on the south side of Firestone Blvd. from 250 feet west of Arnett St. to the West City Limit). Streets adjacent to this zone have been improved with mid -block lighting. Every parcel adjacent to these streets is assessed on land square footage in the same manner as Zone II. Rate Land Area (s.f.)($/10ksf� Total Amount 3,561,901 $45.47 $16,196 ASSESSMENT RATE ($/10ksf) Density Maximum (s.f./parcel) FY18-19 FY17-18 FY16-17 FY15-16 Rate all sizes (s.f.) $45.47 $45.47 $45.47 $45.47 $45.47 Numberof •Zone VI City • -. • SCE Owned'. .. Total No, of • LIGHTING AND LANDSCAPING DISTRICT A.D. 121 FISCAL YEAR 2018-2019 1274,617 • BE ASSESSED Direct assessments in Zone L are distributed based on the special benefit each property receives, Parcels are assessed in the same manner as Zone 111. RESIDENTIAL (75%) - $211,966 TO BE ASSESSED Density (No. of Trips per ...D.U..per Parcel) Total Units D.U. Rate����r Total Amount 1-4 units 23,097 10 $0.732 $7.32 $169,070 5+ units 9,749 6 $0,732 $4.40 $42,896 I M 32,783 ASSESSMENT RATE ($/D.U.) $211,966 Density (No. of Maximum D.U. per Parcel) FY18-19 FY1 7-18 FY1 6-17 FY1 5-16 Rate 1-4 units $7.32 $7.32 $7.32 $7.32 $7.32 5+ units $4.40 $4.40 $4.40 $4.40 $4.40 COMMERCIAL (25%) - $62,651 TO BE ASSESSED Rate Land Area 1$/10ksf) , Total Amount I 44,432,984 $14.10 $62,651 ASSESSMENT RATE ($/10 kso Maximum IFY1 8-19 FY17-18 FY16-17 FY111 5-16 Rate all sizes (s.f.) $14.10 $14.10 $14.10 $14.10 $14.10 LIGHTING AND LANDSCAPING SUMMARYFINANCIAL � 2016/2017 Interest Earned (4,809) i ,g , 527 ,i ,� i Funds Available 1 e.. 1 i i i ' Y ♦ i Funds+ Expenditures��� IFY 201712018 Est. Interest Earned i ` w:. • ♦ : �i. �i Yi! i limit Fundsmallo, Levy i ♦i`t Y`1 - i i� iii • i • Sb I 1 !i EarnedEst, Interest :. �i ■++erty Tax t i i i i 1 i f.. 744�434 i . wi Funds Available i •� 1� 1 i� ' i 7 i'i • ii Est. Assessment Levy Est. Funds+ Lev + iii i •� i i i• �; i Budget e r ail '� ►a i * .Y �i i; � • � � � i i y ,. ,. 1: :i W W Wil.-Mol NA r011f1 PARCEL AREA No. ZONE LOCATION STREET NAME PROPERTY . (SF) UNITS 6254005010 16 R 8139 FOURTH ST SFR 6367003020 39 R 7940 TELEGRAPH RD SFR 6255008014 10,210 1 C 14434 DOWNEY AV COMM 6255008015 8,300 1; C 14424 DOWNEY AV COMM 6255008025 7,900 1 C 8307 IOWA ST COMM 6254019904 10,420 3 C 11022 DOWNEY AV COMM 6254020001 1,900 1 C 11100 DOWNEY AV COMM 6287024015 24 R 9553 FIRESTONE BL SFR Page 15