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HomeMy Public PortalAbout11) 8A Public Hearing - Levy of Citywide Lighting and Landscape District AssessmentsAGENDA ITEM 8.A. ADMINISTRATIVE SERVICES DEPARTMENT MEMORANDUM DATE: May 19, 2020 TO: The Honorable City Council FROM: Bryan Cook, City Manager By: Susan Paragas, Director of Administrative Services SUBJECT: PUBLIC HEARING - RESOLUTION NO. 20-5473 ORDERING THE LEVY OF CITYWIDE LIGHTING AND MAINTENANCE DISTRICT ASSESSMENTS FOR FISCAL YEAR (FY) 2020-2021 RECOMMENDATION: It is recommended that the City Council: 1. Receive presentation from staff; 2. Open the public hearing; 3. Adopt Resolution No. 20-5473, ordering the levy and collection of assessments for FY 2020-2021. BACKGROUND: 1. On June 19, 1979, the City Council of Temple City adopted Resolution No. 79-1825 forming the Temple City Citywide Lighting and Maintenance District (District) and confirmed assessments for the first time in FY 1979-80. 2. On April 23, 1995, after giving direction to staff to analyze the assessment methodology, the City Council received an Executive Summary that explained the recommended methodology changes and provided examples of the effects of the different alternatives. The City Council directed staff to make the approved changes to the District for the FY 1995-96. Notices were mailed to all property owners outlining the changes to the methodology and stating the assessment amount proposed for each property and that a Consumer Price Index (CPI) escalator was included in the District. The changes were approved after a formal public hearing. 3. On November 5, 1996, California voters approved Proposition 218, also known as “The Right to Vote on Taxes Act”. The City was able to continue to levy assessments at the current rate for the Citywide Lighting and Maintenance District since City Council May 19, 2020 Page 2 of 4 Proposition 218 allowed certain exemptions for existing assessments. However, any increase in the assessment, including the addition of a CPI escalator, would require a ballot be mailed to each property owner subject to the assessment, and that a majority of property owners returning their ballot must approve of the increased assessment. Further, Proposition 218 required that the local agency distinguish between general and direct benefit and shall only assess for direct benefit. At that time, the parks assessment was considered to be a general benefit. 4. On July 1, 1997, the City discontinued assessments for park maintenance operations. The park maintenance program is currently funded through the General Fund. 5. Pursuant to the 1972 State Lighting and Landscape Act, an engineer’s report must be prepared for each fiscal year in which assessments are levied and collected for the City’s Lighting and Maintenance District. The engineer’s report identifies eligible program expenditures, establishes the Lighting and Maintenance District’s operating budget, updates individual property assessments, and documents the City’s compliance with all applicable laws. 6. On March 4, 2020, the City Council adopted Resolution No. 20-5452 ordering the engineering firm of Harris & Associates to prepare the required Engineer’s Report for FY 2020-2021, pursuant to the 1972 State Lighting and Landscape Act. The engineer’s report identifies eligible program expenditures, establishes the District’s operating budget, updates individual property assessments, and documents the City’s compliance with all applicable laws. 7. On May 5, 2020, the City Council adopted Resolution No. 20-5468, declaring the City’s intention to levy and collect Lighting and Maintenance District assessments for FY 2020-2021 and establishing the time and place for hearing public objections. 8. On May 7, 2020, a notice declaring the City’s intention to levy and collect Lighting and Maintenance District assessment for FY 2020-2021 was published in the Temple City Tribune. ANALYSIS: The Landscaping and Lighting Act of 1972 allows the establishment of assessment districts by cities for the purpose of providing certain public improvements which include construction, maintenance and servicing of street lights, traffic signals, landscaping, and park and recreation facilities. The 1972 Act also requires that maintenance assessments be levied according to direct benefit rather than according to assessed value. The City Council formed the Temple City Citywide Lighting and Maintenance District on June 19, 1979 and confirmed assessments beginning in FY 1979-80. Each fiscal year, the City Council considers a resolution to levy and collect assessments necessary to fund existing District programs. City Council May 19, 2020 Page 3 of 4 Utilizing the direct benefit assessment methodology established in 1995, each year the City supplements revenue generated by the existing District to finance the cost of providing maintenance and operation of a street lighting system and to cover the costs of providing maintenance and operation of the traffic signals in the City. These assessments also cover the cost of maintaining the median and parkway landscaping in the City. Annual Program Cost Summary and Budget Detail The Landscaping and Lighting Act of 1972 requires the preparation of an Engineer’s Report each fiscal year for which assessments are levied and collected. In general, the Engineer’s Report determines eligible program expenditures, updates individual property assessments, and documents the City’s compliance with all applicable laws. Assessment Rate Formulas The Ad Valorem tax (i.e., tax based on the assessed value of real estate or personal property) revenue is used exclusively to fund the street lighting program, traffic signals, and related capital improvements. All residential properties are equally assessed for citywide maintenance programs. Commercial, industrial and institutional property assessments are determined by total area (acreage) based on an equivalent dwelling unit (EDU) formula. The average single-family residential parcel in Temple City is approximately 7,200 square feet or one (1) EDU, which is approximately six parcels per acre. Therefore, commercial, industrial and institutional properties are assessed at an amount equal to six residential parcels per acre. Church properties are assessed 75% of the commercial rate, which is equivalent to 4.5 EDU’s per acre. The following table shows the summary of the annual assessment for each zone: SUMMARY OF ANNUAL ASSESSMENTS PER EDU Category of Benefit Benefit Zone A Benefit Zone B Benefit Zone C Benefit Zone D Asmt Rate ($/EDU) Citywide landscaping, traffic signal, medians and parkway X X X X $25.03 Citywide Street Lighting X X X X $0.00 Direct Street Lighting X X X $0.00 Rosemead/Las Tunas Medians X $20.48 City Center Park ways X $54.79 Total Asmt ($/EDU) FY 1 9 -20 $25.03 $25.03 $45.51 $79.82 Total Asmt ($/EDU) FY 20-21 $25.03 $25.03 $45.51 $79.82 Note: An "X" in the table above indicates the category of benefit included in each Zone. The total assessment per zone is the sum of the assessments for each category of benefit. City Council May 19, 2020 Page 4 of 4 CITY STRATEGIC GOALS: As a result of the City Council accepting the Engineer’s Report for the Temple City Citywide Lighting and Maintenance District for FY 2020-2021 and adopting Resolution No 20-5473, the City will further the Strategic Goal to promote Good Governance. FISCAL IMPACT: The levy of citywide Lighting and Maintenance District assessment for FY 2020-2021 will generate an estimated $330,000 in revenues. ATTACHMENTS: A. Resolution No. 20-5473 B. Engineer’s Report for Temple City Citywide Lighting and Maintenance District – FY 2020-2021 ATTACHMENT A 1 RESOLUTION NO. 20-5473 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMPLE CITY, CALIFORNIA, ORDERING THE LEVY AND COLLECTION OF ASSESSMENTS FOR FISCAL YEAR (FY) 2020-2021 WITHIN THE CITYWIDE LIGHTING AND MAINTENANCE DISTRICT, PURSUANT TO THE STATE LANDSCAPING AND LIGHTING ACT OF 1972 AND AUTHORIZING THE ADDITION OF SPECIAL ASSESSMENT FEES TO THE TAX BILLS WHEREAS, the City Council of the City of Temple City, on May 5, 2020, adopted Resolution of Intention No. 20-5473, to levy and collect assessments for FY 2020-21 within the Citywide Lighting and Maintenance District, which resolution was published as required by law and witnessed by proof of publication on file in the office of the City Clerk; and, WHEREAS, the City Council has received and considered evidence, including oral and written testimony regarding the jurisdictional facts in this proceeding and the necessity for the proposed work and benefits to be derived therefrom; and, WHEREAS, the City Council has the authority to establish and order the collection of the proposed assessments; and, WHEREAS, the County of Los Angeles is responsible for entering special assessment fees on the tax bills, which the County collects on the City's behalf pursuant to the general services agreement between the City of Temple City and County of Los Angeles and in accordance with Government Code Sections 51800 and 29304; and, WHEREAS, under the terms of said agreement, the City of Temple City requests the County of Los Angeles enter the City's special assessment fees on the tax bills for the City. NOW, THEREFORE, the City Council of the City of Temple City does hereby resolve as follows: SECTION 1. The City Council of the City of Temple City approves the report filed by the engineer. SECTION 2. The public interest and convenience require the ordering of the levy and collection of assessments for FY 2020-2021. Therefore, the City Council hereby orders the levy and collection of assessments within the Citywide Lighting and Maintenance District. City Council Resolution No. 20-5473 SECTION 3. The adoption of this resolution constitutes the levy of the assessments as set forth in the engineer's report for FY 2020-2021. SECTION 4. The City Clerk is hereby authorized and directed to file a certified copy of the diagram and assessment with the Auditor of the County of Los Angeles no later than the third Monday in August 2020. SECTION 5. The City Council hereby requests the County enter City special assessment fees collected by the County on the City's behalf, on the tax bills for the City. SECTION 6. The City Clerk shall certify to the passage and adoption of this resolution. PASSED, APPROVED, AND ADOPTED on this 19th day of May 2020. Tom Chavez, Mayor ATTEST: APPROVED AS TO FORM: Peggy Kuo, City Clerk Greg Murphy, City Attorney I hereby certify that the foregoing resolution, Resolution No. 20-5473, was duly passed, approved and adopted by the City Council of the City of Temple City at a meeting held on the 19th day of May 2020, by the following vote: AYES: Councilmember: NOES: Councilmember: ABSENT: Councilmember: ABSTAIN: Councilmember: Peggy Kuo, City Clerk CITY OF TEMPLE CITY ENGINEER’S REPORT CITYWIDE LIGHTING AND MAINTENANCE DISTRICT FISCAL YEAR 2020-21 LOS ANGELES COUNTY, CALIFORNIA April 27, 2020 PREPARED BY 22 Executive Park, Suite 200 Irvine, CA 92614 www.weareharris.com ATTACHMENT B Engineer’s Report Citywide Lighting and Maintenance District City of Temple City Fiscal Year 2020-21 TABLE OF CONTENTS Statement of Assessment Engineer .............................................................................. i Part I - Overview ........................................................................................................... 1 Part II - Plans and Specifications ................................................................................... 3 Part III – Cost Estimate .................................................................................................. 5 Part IV - Method of Apportionment ............................................................................. 7 Appendix A - Assessment Roll ..................................................................................... 13 Appendix B – Assessment Diagram ............................................................................ 14 Appendix C – Senate Bill 324 ...................................................................................... 15 ATTACHMENT B Engineer’s Report Citywide Lighting and Maintenance District City of Temple City Fiscal Year 2020-21 i ENGINEER’S CERTIFICATION Statement of Assessment Engineer AGENCY: THE CITY OF TEMPLE CITY PROJECT: CITYWIDE LIGHTING AND MAINTENANCE DISTRICT TO: THE CITY COUNCIL OF THE CITY OF TEMPLE CITY STATE OF CALIFORNIA ENGINEER’S REPORT FOR FISCAL YEAR 2020–21 The preparation of this Annual Engineer’s Report (“Report”) is in conformance with the obligation of the City Council for the Citywide Lighting and Maintenance District of the City of Temple City to levy assessments within the District to provide services upon each lot or parcel of land in proportion to the estimated benefit to be received by each such lot or parcel of land for Fiscal Year 2020–21. Pursuant to the Landscaping and Lighting Act of 1972 (Part 2 Division 15 of the Streets and Highways Code of the State of California, commencing with Section 22500) (“Act”), and in accordance with the City of Temple City’s Resolution being adopted by the City Council for: CITYWIDE LIGHTING AND MAINTENANCE DISTRICT (Hereinafter referred to as the “District”), I, K. Dennis Klingelhofer, authorized representative of the District, the duly appointed Assessment Engineer submit the following Report which consists of the following four (4) parts and Appendices: PART I Overview: Provides the background and reason for the District. PART II 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 Clerk and are incorporated herein by reference. ATTACHMENT B Engineer’s Report Citywide Lighting and Maintenance District City of Temple City Fiscal Year 2020-21 ii PART III Cost Estimate: 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 IV 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 special 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. Appendices Appendix A – Assessment Roll Appendix B – Assessment Diagram In conclusion, it is my opinion that the costs and expenses of the District have been assessed to the lots and parcels within the boundaries of the District in proportion to the estimated benefits to be received by each lot or parcel from the services provided. DATED: April 27, 2020 ___________________________________________ K. Dennis Klingelhofer, P.E., Assessment Engineer R.C.E. No. 50255 Engineer of Work State of California ATTACHMENT B Engineer’s Report Citywide Lighting and Maintenance District City of Temple City Fiscal Year 2020-21 1 PART I – OVERVIEW The purpose of this report is to set forth findings and engineering analysis for the Temple City Citywide Lighting and Maintenance District for the 2020-21 fiscal year. This District, utilizing direct benefit assessments, (1) supplements revenue generated by the existing 1919 Act Temple City Municipal Lighting District to finance the cost of providing maintenance and operation of a street lighting system and covers the costs of providing maintenance and operation of the traffic signals in the City, and (2) covers the costs of maintaining the median and parkway landscaping in the City of Temple City. The City Council of Temple City adopted Resolution No. 79-1825 on June 19, 1979, which formed the Temple City Citywide Lighting and Maintenance District and confirmed assessments for the first fiscal year, 1979-80. Following the completion of the District proceedings for FY 1994-95, the City Council directed staff to analyze the assessment methodology. The purpose of the study was to verify that properties were being assessed in proportion to the benefit received. An Executive Summary explaining the findings, detailing recommended methodology changes, and providing examples of the effects of the different alternatives was completed and submitted to the City Council. On April 23, 1995, the City Council received the Executive Summary, approved the recommended changes, and directed staff to make the approved changes to the District for FY 1995-96. Notices were mailed to all property owners outlining the changes to the methodology, and stating the assessment amount proposed for each property and that a CPI escalator was included in the District. The changes were approved after a formal protest hearing which was held prior to the passage of Proposition 218. Following the passage of Proposition 218 in November, 1996, the City has been able to continue to levy assessment at the current rate since Proposition 218 allowed certain exemptions for existing assessments. However, the City adopted the inclusion of a CPI escalator prior to the passage of Prop. 218 and any increase in the assessment, including the addition of a CPI escalator, will require that a ballot be mailed to each property owner subject to the assessment, and that a majority of property owners (weighted by assessment amount) returning their ballot must approve of the increase in the assessment. In addition, any other changes needed to comply with the requirements of Proposition 218 would have to be made at that time. Without the use of a CPI escalator, the General Fund contribution increases each year in order to maintain the District. In September 2018, the City contracted Harris & Associates to evaluate the District and provide options to reduce the General Fund subsidy. This included a review of the ad-valorem revenue the City receives from the 1919 Act District which funds streetlights. Since the ad-valorem revenue is greater than the annual costs, one goal was to look at how that revenue could be used to provide a greater benefit to the City’s citizens. The review included the status of the current assessment revenue, the current inventory ATTACHMENT B Engineer’s Report Citywide Lighting and Maintenance District City of Temple City Fiscal Year 2020-21 2 of improvements being maintained, and a 10-year horizon of expenditures and revenue for capital replacement projects. On February 5, 2019 a presentation was made to the City Council of the findings and potential options for consideration included 1) pursuing legislation to give the City authorization to use the 1919 Act fund balance to be used for any improvements authorized by the 1972 Act; and 2) seek to form a new 1972 Act District to increase current assessments in compliance with Proposition 218. The new District could then be expanded to fully fund the ongoing operation and maintenance of existing improvements, provide funding for capital projects and add a Park Benefit component. The Council agreed the first step should be to pursue the legislation action and directed staff to begin that effort. The expedient effort by the Staff working with Senator Rubio resulted in Senate Bill 324 being approved by the Senate and signed by the Governor in July 2019. This report reflects those changes and covers the levy of annual assessments for the 2020-21 fiscal year. ATTACHMENT B Engineer’s Report Citywide Lighting and Maintenance District City of Temple City Fiscal Year 2020-21 3 PART II – PLANS AND SPECIFICATIONS The installation of planting, landscaping, irrigation systems, lighting and the construction of appurtenant facilities to be operated, serviced and maintained within the City of Temple City, is generally described as follows: The facilities to be constructed, maintained and serviced are the streets and sidewalks within the District, including street lighting, traffic signals, street trees, median and parkway, landscaping and hardscaping. The District will supplement revenue generated by the existing 1919 Act Temple City Municipal Lighting District, and will fund 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 IV of this report for a discussion of the Zones of Benefit and the facilities associated with them which are serviced and maintained. The improvements are described as follows: Landscaping and Appurtenant Facilities Facilities include but are not limited to: Landscaping, planting, shrubbery, trees, irrigation systems, hardscapes, fixtures, sidewalk maintenance resulting from landscape growth and appurtenant facilities, in public street and sidewalk rights-of-way, medians, parkways and dedicated easements within the boundaries of the District. Lighting, Traffic Signals 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 and traffic signals in public street and sidewalk rights-of-way and dedicated easements within the boundaries of the District. The public lighting system shall be maintained to provide adequate illumination. The traffic signal system shall be maintained based on the City specifications and current industry standards. Electricity for street lights and traffic signals shall be furnished, 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 within the public street right-of-way, 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 ATTACHMENT B Engineer’s Report Citywide Lighting and Maintenance District City of Temple City Fiscal Year 2020-21 4 disease or injury; the removal of trimmings, rubbish, debris and other solid waste; and the cleaning, sandblasting and painting of walls and other improvements to remove or cover graffiti. Servicing means the furnishing of water for the irrigation of the landscaping and the maintenance of any of the public lighting facilities or appurtenant facilities within the street right-of-way and the furnishing of electric energy for the public lighting facilities, landscaping or appurtenant facilities. The plans and specifications for the improvements, showing the general nature, location, and extent of the improvements, are on file in the office of the City Clerk and are by reference herein made a part of this report. ATTACHMENT B Engineer’s Report Citywide Lighting and Maintenance District City of Temple City Fiscal Year 2020-21 5 PART III – COST ESTIMATE The estimated cost of the construction, operation, servicing and maintenance of the street and sidewalk improvements for fiscal year 2020-21, as described in Part II, are summarized herein and described below. All costs include administration and utilities where applicable. ITEM COST ESTIMATE FY 2019-20 FY 2020-21 I.REVENUE 1919 ACT AD-VALOREM REVENUE $1,185,000 $1,203,600 1972 ACT ASSESSMENT REVENUE $328,909 $329,956 RESERVE COLLECTION/(TRANSFER)$0 TOTAL REVENUE $1,513,909 $1,533,556 II.EXPENDITURES STREET LIGHTING (1919 ACT) STREET LIGHTS $406,605 $403,250 TRAFFIC SIGNALS AND SAFETY LIGHTING $156,500 $156,500 CAPITAL IMPROVEMENTS $0 $1,000,000 TOTAL LIGHTING EXPENDITURES $563,105 $1,559,750 LANDSCAPING IMPROVEMENTS (1972 ACT) LANDSCAPING Citywide Trees and Medians $788,655 $664,440 Rosemead/Las Tunas Median Maintenance $10,575 $10,575 Rosemead Boulevard $126,000 $51,000 City Center Parkways $9,000 $9,000 TOTAL LANDSCAPING EXPENDITURES $934,230 $735,015 COUNTY ADMINISTRATIVE CHARGE FOR LEVY COLLECTION $7,000 $7,000 TOTAL EXPENDITURES $1,504,335 $2,301,765 III.FUND BALANCE INFORMATION BEGINNING FUND BALANCE (7/1)$2,905,489 $2,939,063 INTEREST $24,000 $5,000 RESERVE COLLECTION/(TRANSFER)$9,574 ($768,209) $2,939,063 $2,175,854 FUND DETAIL: ANNUAL OPERATING RESERVE (50% OF TOTAL EXPENDITURES)$752,168 $1,150,883 CAPITAL RESERVE $2,186,895 $1,024,971 PROJECTED YEAR END FUND BALANCE (6/30)$2,939,063 $2,175,854 ATTACHMENT B Engineer’s Report Citywide Lighting and Maintenance District City of Temple City Fiscal Year 2020-21 6 The 1972 Act requires that a special fund be setup for the revenues 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 1 must be carried over to the next fiscal year. Operating Reserve: This item includes the amount to be collected to maintain reserves to enable the City to pay for the maintenance and servicing of the improvements prior to December 10 of the fiscal year, or whenever the City expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. The Reserve Fund contribution will continue until such a time the Reserve Fund balance is approximately one half of the annual costs. Capital Reserve: This item includes funds for the repair/replacement of improvements or the installation of new improvements to further enhance the level and quality of service provided within the boundaries of the District. The fund may be allowed to accumulate in anticipation of any unforeseen expenses not included in the yearly maintenance costs. This may include, but is not limited to the repair/replacement of improvements at the end of their useful life, upgrading or enhancement of improvements within the District, repair of damaged equipment due to vandalism, storms and other similar events where the costs cannot be covered by the annual assessment levy. ATTACHMENT B Engineer’s Report Citywide Lighting and Maintenance District City of Temple City Fiscal Year 2020-21 7 PART IV - METHOD OF APPORTIONMENT GENERAL Part 2 of Division 15 of the Streets and Highways 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 includes the construction, maintenance and servicing of street lights, traffic signals, landscaping, and park and recreational facilities. Section 22573, of the 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.” Because assessments are levied on the basis of benefit, they are not a tax, and, therefore, are not governed by Article XIIIA of the California Constitution. The Act permits the designation of zones of benefit within any individual assessment district if "by reason of variations 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 "benefit assessment" rather than a "special tax." The Act also permits certain parcels to be exempt from assessment. Excepted from these assessments are areas of all publicly owned property such as: public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, all public easements and rights-of-way, all public parks, green belts and parkways, and all public property being used for public purposes, as well as utility owned property since they do not receive a benefit from the improvements. Also excepted from these assessments are common areas in multiple lot/unit developments; undeveloped lots and parcels that are of such size and/or configuration and location that the City's current zoning and subdivision laws prohibit beneficial development and usage. PARCEL CLASSIFICATION All parcels in the City of Temple City derive special benefit from the street lighting and traffic signal system, general landscape maintenance in the streets and sidewalks, arterial highway median maintenance on Santa Anita Boulevard, Baldwin Avenue, Rosemead Boulevard and Las Tunas Drive, and arterial parkway ATTACHMENT B Engineer’s Report Citywide Lighting and Maintenance District City of Temple City Fiscal Year 2020-21 8 maintenance on Las Tunas Drive (City Center Parkway Improvements). The intent of this report is to establish a methodology that fairly distributes the cost in relation to the special benefits received.  Residential - All residential uses are assessed 1 EDU per dwelling unit.  Commercial/Industrial - Commercial, Industrial and Institutional parcels are converted to EDUs based on the lot size of each parcel of land. In converting these properties to EDUs, the factor used is the City of Temple City's average single family residential lot size of 7,200 square feet, which is approximately 6 lots per acre. Therefore, commercial/industrial parcels are assessed six (6) EDUs per acre.  Churches - The City Council has ordered that church-owned properties receive a 25 percent reduction to the assessment rate. Therefore, church properties with residential uses are assessed 0.75 EDUs per dwelling unit. All other church properties are assessed 75 percent of the commercial/industrial rate, which calculates to 4.5 EDUs per acre. The land use classification for each parcel has been based on the Los Angeles County Assessor's Roll. SPECIAL BENEFIT DETERMINATION Property values in a community are individually increased when public infrastructure such as street lights and traffic signals, and landscaping facilities are in place, improved, operable, safe, clean and maintained. Street Lighting and Traffic Signals The proper functioning of street lighting and traffic signals is imperative for the welfare and safety of the public and property throughout the City. Proper maintenance and servicing of the street lighting system benefits properties within the District by providing proper illumination for ingress and egress and safe traveling at night. Properties within the District also benefit from the proper functioning of the District's traffic signal system. Proper operation of the street light and traffic signal systems is imperative to public convenience, orderly traffic flow, enhanced congestion management and safety. Improved security, fuel conservation, protection of property from crime and vandalism, and reduction of traffic accidents, are special and direct benefits to all properties within the City; lighting benefits are directly related to public safety and property protection and therefore increase property values. Street Landscaping The City maintains trees and miscellaneous shrubbery throughout the City. The trees and shrubbery are located within the public right-of-way. These trees and shrubbery provide an aesthetically pleasing environment, shade, beautification, and according to some authorities, air purification and sound attenuation. These positive attributes increase the value of all properties throughout the City. ATTACHMENT B Engineer’s Report Citywide Lighting and Maintenance District City of Temple City Fiscal Year 2020-21 9 There are two types of special benefits: Citywide Benefits and Local Benefits. Citywide Benefits Special benefits that are received by all parcels in the City are considered Citywide Benefits, and the associated costs of these benefits are spread equally, based on Equivalent Dwelling Units, to all parcels within the District. City-wide Benefits within the District include landscape maintenance throughout the City, the operation and maintenance of traffic signals, and street lighting and median maintenance on the major thoroughfares, which are the main travel ways of the City. Local Benefits  Local Lighting Streetlights adjacent to or near a parcel of land provide a special and direct Local Benefit to that parcel. This includes added security, reduction in traffic accidents and increased aesthetics benefit the surrounding parcels and thereby enhance the value of the parcels. All parcels with streetlights in their vicinity receive a Local Benefit.  Rosemead Boulevard and Las Tunas Drive Medians These improvements are located along Rosemead Boulevard, from Broadway to Hermosa, and Las Tunas Drive, from Muscatel to Sultana, and consist of median improvements including landscaping, irrigation and hardscape. The improvements are located on major arterials, and therefore provide benefit to all parcels within the City. However, the commercial properties directly adjacent to these improvements receive a direct Local Benefit in addition to the Citywide Benefit, due to economic enhancement relating to parkway beautification and increased desirability of the surroundings which provides additional increases in property value as a result of the improvements. Because the improvements provide a Citywide Benefit and a Local Benefit, it is proposed that the costs for maintaining and servicing these improvements be divided so that half of the cost is spread Citywide and half of the cost is spread to the local area of benefit.  City Center Parkway Improvements These improvements are located along Las Tunas Drive, from Cloverly to Kauffman, and consist of parkway improvements including raised planters, automatic irrigation, street trees, decorative lighting fixtures, tree grates, benches, and hardscape. Since City Center Parkway is a major arterial, the landscaping provides benefit to all parcels within the City. However, the commercial properties directly adjacent to these improvements receive a ATTACHMENT B Engineer’s Report Citywide Lighting and Maintenance District City of Temple City Fiscal Year 2020-21 10 direct Local Benefit in addition to the Citywide Benefit, due to economic enhancement relating to parkway beautification and increased desirability of the surroundings which provides additional increases in property value. Because the improvements provide a Citywide Benefit and a Local Benefit, it is proposed that the costs for maintaining and servicing these improvements be divided so that half of the cost is spread Citywide and half of the cost is spread to the local area of benefit. ZONE CLASSIFICATIONS A system of zones has been developed to identify the specific benefit each parcel receives. The zones are as follows: Zone A - This zone includes all properties receiving a local lighting benefit. They are assessed for local lighting, as well as the Citywide Benefits. Zone B - This zone includes residential properties that receive only Citywide Benefits. Zone C - Rosemead Boulevard/Las Tunas Drive Median Landscaping. This zone includes all commercial parcels abutting the Rosemead Boulevard/Las Tunas Drive medians. They are assessed the Rosemead Boulevard/Las Tunas Drive Median Local Benefit, as well as the Citywide Benefits and direct Local Lighting Benefit. Zone D - City Center Parkway Improvements. This zone includes commercial parcels abutting the City Center Parkway Improvements. They are assessed the City Center Parkway Improvement Local Benefit, as well as the Citywide Benefits and direct Local Lighting Benefit. INVENTORY OF PARCELS The following information was obtained from the Los Angeles County Assessor's Roll and the City of Temple City. Dwelling Land Use Parcels Units Acres EDU Exempt 181 n/a n/a - Single Family Residential (SFR) Parcels 8,775 8,775 n/a 8,775.00 Multi-Family Residential (MFR) Parcels 921 3,061 n/a 3,061.00 Commercial/Industrial 407 n/a 150.36 902.19 Churches 38 7 30.38 141.97 TOTAL:10,322 11,843 180.74 12,880.16 ATTACHMENT B Engineer’s Report Citywide Lighting and Maintenance District City of Temple City Fiscal Year 2020-21 11 The distribution of EDUs per Zone is as follows: ASSESSMENT SUMMARY The following table shows the summary of the annual assessments for each Zone of Benefit. An "X" in the table above indicates the category of benefit included in each Zone. The total assessment per zone is the sum of the assessments for each category of benefit. As a result of SB 324 approval, the 1919 Act Lighting Maintenance District revenue covers the entire Fiscal Year 2020-21 street lighting, traffic signal budgets as well as the shortfall in revenue from assessments for the landscaping operation and maintenance. SAMPLE CALCULATONS Sample calculations for various land use types in Zones A and B are provided in the following table. Zone EDU A 9,673.99 B 2,913.25 C 247.27 D 45.65 Total 12,880.16 Category of Benefit Benefit Zone A Benefit Zone B Benefit Zone C Benefit Zone D Asmt Rate ($/EDU) Citywide landscaping, traffic signal, medians, and parkway X X X X $25.03 Citywide Street Lighting X X X X $0.00 Local Street Lighting X X X $0.00 Rosemead/Las Tunas Medians X $20.48 City Center Parkways X $54.79 Total Asmt ($/EDU) FY 20-21 $25.03 $25.03 $45.51 $79.82 Total Asmt ($/EDU) FY 19-20 $25.03 $25.03 $45.51 $79.82 ATTACHMENT B Engineer’s Report Citywide Lighting and Maintenance District City of Temple City Fiscal Year 2020-21 12 Total Fiscal Year Land-Use EDU Calculation EDUs 2020-21 Asmt SFR 1 DU x 1 EDU/DU = 1.00 $25.03 Condominium 1 DU x 1 EDU/DU = 1.00 $25.03 3-Unit Apartment 3 DU x 1 EDU/DU = 3.00 $75.09 10-Unit Apartment 10 DU x 1 EDU/DU = 10.00 $250.30 ¼ acre Church ¼ ac x 4.5 EDU/ac = 1.13 $28.16 1 acre Church 1 ac x 4.5 EDU/ac = 4.50 $112.64 1/8 acre Com/Ind 1/8 ac x 6 EDU/ac = 0.75 $18.77 ¼ acre Com/Ind ¼ ac x 6 EDU/ac = 1.50 $37.55 ½ acre Com/Ind ½ ac x 6 EDU/ac = 3.00 $75.09 1 acre Com/Ind 1 ac x 6 EDU/ac = 6.00 $150.18 5 acre Com/Ind 5 ac x 6 EDU/ac = 30.00 $750.90 ATTACHMENT B Engineer’s Report Citywide Lighting and Maintenance District City of Temple City Fiscal Year 2020-21 13 APPENDIX A – ASSESSMENT ROLL The proposed assessment and the amount of assessment for Fiscal Year 2020-21 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 Temple City, 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 part of this Report. ATTACHMENT B Engineer’s Report Citywide Lighting and Maintenance District City of Temple City Fiscal Year 2020-21 14 APPENDIX B – ASSESSMENT DIAGRAM The boundaries of the District are coterminous with the boundaries of the City of Temple City. A diagram showing the exterior boundaries of the District, the boundaries of any zones within the Assessment District, and the lines and dimensions of each lot or parcel of land within the District is on file in the Office of the City Clerk and incorporated herein by reference. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Assessor of the County of Los Angeles for the fiscal year to which this report applies. The Assessor's maps and records are incorporated by reference herein and made part of this report. ATTACHMENT B Engineer’s Report Citywide Lighting and Maintenance District City of Temple City Fiscal Year 2020-21 15 APPENDIX C – SENATE BILL 324 The following pages provide the Bill that was approved by the Governor on July 10, 2019, the timeline of the process and the Assembly Committee Local Government Analysis. Detailed history and documentation is available at: http://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200SB324. ATTACHMENT B Engineer’s Report Citywide Lighting and Maintenance District City of Temple City Fiscal Year 2020-21 15 APPENDIX C – SENATE BILL 324 The following pages provide the Bill that was approved by the Govenor on July 10, 2019, the timeline of the process and the Assembly Committee Local Government Analysis. Detailed history and documentation is available at: http://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200SB324. ATTACHMENT B SHARE THIS:Date Published: 07/10/2019 09:00 PM SB-324 Street lighting systems: City of Temple City.(2019-2020) Senate Bill No. 324 CHAPTER 73 An act relating to street lighting. [ Approved by Governor July 10, 2019. Filed with Secretary of State July 10, 2019. ] LEGISLATIVE COUNSELʹS DIGEST SB 324, Rubio. Street lighting systems: City of Temple City. (1) The Street Lighting Act of 1919 provides for an alternative system for making improvements to street lighting systems, as defined. The act authorizes, when, in the opinion of the city council of any city, the public interest or convenience requires, that the city may, among other things, order that any street lighting system be maintained in or along the whole or any part of any one or more of the streets in that city. This bill would, in addition to the Landscaping and Lighting District of the City of Temple City’s existing authority to perform specified maintenance and operations under the Street Lighting Act of 1919, authorize that district to also perform maintenance and make improvements pursuant to the Landscaping and Lighting Act of 1972. (2) This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Temple City. Vote: majority Appropriation: no Fiscal Committee: no Local Program: no THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. In addition to the district’s authority to perform street lighting maintenance and operations as specified in Section 18030 of the Streets and Highways Code, the Landscaping and Lighting District of the City of Temple City may also perform maintenance and make improvements pursuant to Sections 22525 and 22531 of the Streets and Highways Code. SEC. 2. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique need to perform immediate maintenance and make improvements in the City of Temple City. Home Bill Information California Law Publications Other Resources My Subscriptions My Favorites Page 1 of 1Bill Text -SB-324 Street lighting systems: City of Temple City. 3/9/2020http://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200SB324 ATTACHMENT B SB-324 Street lighting systems: City of Temple City.(2019-2020) Date Action 07/10/19 Chaptered by Secretary of State. Chapter 73, Statutes of 2019. 07/10/19 Approved by the Governor. 07/05/19 Enrolled and presented to the Governor at 3:30 p.m. 06/27/19 In Senate. Ordered to engrossing and enrolling. 06/27/19 Read third time. Passed. (Ayes 71. Noes 0. Page 2459.) Ordered to the Senate. 06/20/19 Read second time. Ordered to consent calendar. 06/19/19 From committee: Do pass. Ordered to consent calendar. (Ayes 8. Noes 0.) (June 19). 05/16/19 Referred to Com. on L. GOV. 05/02/19 In Assembly. Read first time. Held at Desk. 05/02/19 Read third time. Passed. (Ayes 38. Noes 0. Page 924.) Ordered to the Assembly. 04/29/19 Read second time. Ordered to consent calendar. 04/25/19 From committee: Do pass. Ordered to consent calendar. (Ayes 7. Noes 0. Page 846.) (April 24). 04/04/19 Set for hearing April 24. 03/25/19 From committee with author's amendments. Read second time and amended. Re-referred to Com. on GOV. & F. 02/28/19 Referred to Com. on GOV. & F. 02/19/19 From printer. May be acted upon on or after March 21. 02/15/19 Introduced. Read first time. To Com. on RLS. for assignment. To print. Home Bill Information California Law Publications Other Resources My Subscriptions My Favorites Page 1 of 1Bill History 3/2/2020https://leginfo.legislature.ca.gov/faces/billHistoryClient.xhtml?bill_id=201920200SB324 ATTACHMENT B SB 324 Page 1 Date of Hearing: June 19, 2019 ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT Cecilia Aguiar-Curry, Chair SB 324 (Rubio) – As Amended March 25, 2019 SENATE VOTE: 38-0 SUBJECT: Street lighting systems: City of Temple City. SUMMARY: Allows the Landscaping and Lighting District of Temple City to perform maintenance and make improvements under the Landscaping and Lighting Act of 1972 (1972 Act). FISCAL EFFECT: None COMMENTS: 1) Assessments. A benefit assessment is a charge that property owners pay for a public improvement or service that provides a special benefit to their property. The amount of the assessment must be directly related to the amount of the benefit that the property receives. Benefit assessments can finance public projects like flood control, street improvement, streetlights, and public landscaping, among many others. California statute authorizes local agencies to adopt a wide variety of assessments through the formation of assessment districts. An assessment district is not a separate government agency but rather a defined area containing the property that specifically benefits from certain public improvements. Within this defined area, the special assessments are apportioned and levied according to a benefit formula approved by the legislative body. With the passage of Proposition 218 (1996), assessments became more difficult to impose, including those levied by assessment districts because of newly enacted property owner approval requirements. In general, Proposition 218 ensured that all new or increased taxes and charges on property owners are subject to property owner approval, and it sought to curb the use of these revenue-raising tools to pay for general governmental services rather than property-related services. 2) 1919 Act and 1972 Act. The Street Lighting Act of 1919 Act (1919 Act) is a tool used by cities to finance street lighting improvements. When a city council finds it is in the public’s best interest, it can order any street lighting system to be maintained along one or more of the streets in the city, or order electric current or another power source to be furnished for a street lighting system. The city council can then levy an assessment on properties proportional to the anticipated benefit of the improvement over a 12-month period. The city council can continue the assessment for subsequent 12-month periods to maintain the services provided. Funds from the 1919 Act can only be used for lighting maintenance and cannot be used for the installation of city owned public lighting facilities, including traffic signals or landscape maintenance. ATTACHMENT B SB 324 Page 2 The 1972 Act is a tool used by local agencies to pay for landscaping, lighting, and other improvements and services in public areas. Bonds can be issued to finance improvements under the 1972 Act. Under the 1972 Act, a broad range of improvements can be financed, including: a) Acquisition or construction of landscaping; general lighting, such as streetlights and traffic lights; recreational improvements, such as parks; ornamental features, such as statues and fountains; and any facilities attached or related to these types of improvements; b) Acquisition of land for parks and open spaces; c) Acquisition or construction of community centers, municipal auditoriums, halls, or other similar facilities; d) Acquisition of any existing asset that a district would otherwise be able to construct; and, e) Maintenance of any of the above. 3) City of Temple City and Current Limitations. Temple City receives 1919 Act revenue for the purpose of funding the operation and maintenance of its street lighting system under the authority of the Landscaping and Lighting District of Temple City. The City can only use funds from the 1919 Act for lighting maintenance, not for other needs it may have, such as the installation of city-owned public lighting facilities, including traffic signals, or for landscape maintenance, which would be allowed if the city collected these funds under the 1972 Act. The City reports a balance of over $2 million collected under the 1919 Act that it could use for one-time improvements, and $600,000 in annual revenue it anticipates collecting. After the passage of Proposition 218, maintenance districts formed under the 1919 Act became a less beneficial tool for funding local infrastructure projects. Proposition 218 requires local agencies to gain property owner approval through a protest process if a new assessment is created or an existing one is increased. In addition, the 1919 Act does not allow as wide of a variety of uses for funds collected as the 1972 Act does. For instance, the 1919 Act does not allow a local agency to finance streetlight installation or landscaping. As a result, local agencies have turned away from using the 1919 Act to levy benefit assessments. But some districts are left with unspent funds collected under the 1919 Act. SB 324 authorizes Temple City’s maintenance district to take a wid er variety of actions than currently allowed, potentially making better use of these funds. However, by authorizing Temple City’s district to use the powers under the 1972 Act, SB 324 could lead to Temple City using funds already collected for purposes not initially intended. 4) Bill Summary and Author’s Statement. This bill allows the Landscaping and Lighting District of Temple City to perform maintenance and make improvements under the 1972 Act. This bill is sponsored by Temple City. ATTACHMENT B SB 324 Page 3 According to the author, “The City of Temple City receives Ad Valorem tax revenues under the 1919 Act for the purpose of funding the operation and maintenance of its Street Lighting. The issue is that funds from the 1919 Act can only be used for lighting maintenance and cannot be used for the installation of city-owned public lighting facilities including traffic signals or landscaping maintenance. This bill will allow these funds to be used for much needed improved maintenance on city streets, street trees, and medians. This bill simply allows for the use of existing excess funds to provide for a broader public benefit already allowed under State law.” 5) Prior Legislation. SB 361 (Hernández), Chapter 63, Statutes of 2017, allowed the La ndscaping and Lighting District of the City of La Puente to also perform maintenance and make improvements under the 1972 Act, in addition to its authority under the 1911 Act. SB 1323 (Hernández), Chapter 93, Statutes of 2018, allowed county lighting districts for the County of Los Angeles to perform maintenance and make improvements authorized under the 1972 Act. 6) Arguments in Support. According to the sponsors, “The City has accumulated unspent Ad Valorem funds due to the limitations on the permissible uses from that revenue source, and at the same time has had to defer or reduce the maintenance of those improvements allowed under the 1972 Act. This has created an imbalance in the District, with an unusable fund balance currently projected at over $2 million. If the City’s District were to receive authorization from the State, these funds could be used for the benefit of the public to provide improved maintenance and capital improvements on City streets, street trees, and medians. This would greatly improve the City’s ability to perform maintenance and make improvements for the benefit of its citizens. There will not be any net cost to the public, the State, other agencies or the City. No new fees or revenue increases will result from the proposed legislation. It would simply allow for the use of existing funds to expand maintenance and make improvements in the public right of way; thus, allowing for the use of existing excess funds to provide for a broader public benefit already allowed under State law.” 7) Argument in Opposition. None on file. REGISTERED SUPPORT / OPPOSITION : Support City of Temple City [SPONSOR] American Federation of State, County, and Municipal Employees Association, AFL-CIO League of California Cities, Los Angeles County Division Opposition None on file Analysis Prepared by: Jimmy MacDonald / L. GOV. / (916) 319-3958 ATTACHMENT B