ITEM 6-E

Council Meeting:  December 8, 1992         Santa Monica, California

TO:       Mayor and City Council

FROM:     City Staff

SUBJECT:  Recommendation to Accept a Petition For  the  Installation
          of  Streetlights,  and  Set Public Hearing for January 12,
          1993 for the Proposed Streetlighting District  on  Arizona
          Avenue From Franklin Street to Centinela Avenue

INTRODUCTION

This report requests that City Council accept a petition  requesting
the  installation  of  streetlights on Arizona Avenue, from Franklin
Street to Centinela Avenue and  adopt  the  attached  Resolution  of
Intention  which  sets  a  public hearing for January 12, 1993 which
declares the City's intention to assess property  owners  for  costs
and issue bonds as security for unpaid assessments.

BACKGROUND

Procedure for Residential Streetlight Installation

In accordance with City code, whenever the occupants of  60  percent
of  the  residential  units in any area petition the City Council to
institute proceedings for  residential  streetlighting  improvement,
the  City  Council shall institute proceedings under Improvement Act
of  1911  to  provide  residential  streetlighting  to  such   area.
Property  owners  are  assessed  for  streetlighting  based on their
property's dimensions.  In accordance with City policy,  residential
property  owners  are  assessed 50% of their front footage or 20% of
their side footage costs  for  construction  of  the  streetlighting
system.  The City pays the balance.
Petitions having the minimum required signatures  are  presented  to
City Council and a time and date is set for a public hearing.  After
considering the public testimony, the City  Council  may  order  the
work  to  begin.   Then  the project is competitively bid by private
contractors, a contract is awarded by City Council to the lowest and
most responsible bidder and bonds are authorized to be sold.  Owners
may pay for the improvements in full, or they may pay over ten  (10)
years  to  include  an  interest rate which is currently at 8.8% per
annum.

Discussion

Petitions requesting streetlighting along Arizona Avenue as well  as
several  other areas were presented to City Council on June 9, 1992.
A public hearing was held on July 28,  1992  and  the  City  Council
ordered  the  work  to begin in all areas except Arizona Avenue.  At
the request of City Staff,  the  hearing  for  Arizona  Avenue  from
Franklin  Street  to  Centinela Avenue was deferred to a later date.
The deferral was due to a complaint received from a  property  owner
from  Arizona  Avenue  concerning the validity of the streetlighting
petition signed by the occupants of the area.

A property owner claimed that only the signatures  of  occupants  of
the  units  with  Arizona Avenue addresses should be accepted in the
petition, and that corner lots  with  non-Arizona  Avenue  addresses
should not have the right to sign the petition.  The City's past and
present policy has been to accept petitions from  occupants  of  all
the  units in an area.  Some corner lots may have the address of the
adjacent street, but since they will benefit from the  streetlights,
they were allowed to sign the petition and will be assessed.
A petition was circulated in 1991, but did not have the required 60%
signatures.   A  new  petition  was  requested by the circulators in
early 1992.  Staff and  City  Attorney's  Office  reviewed  the  new
petition  for  Arizona  Avenue  and  determined that it follows City
policy and practice, and is a valid petition.   Rent  Control  Staff
verified  that  15 out of 25 total occupants of the area  signed the
petition.  The Church of Latter Day Saints located at the corner  of
Arizona and Centinela was not counted towards the 25 total occupants
of the area since it was not considered  a  residential  unit.   The
Pastor, however, is in favor of the streetlight installation, but he
is not one of the 15 people who signed the petition since the Church
is  not  eligable  to  sign.  Even without the church, this petition
meets the 60% requirement and conforms with Rent Control Regulations
for  pass-through  of  assessments.  In most instances, pass-through
charges will be less than $2.00 per month per apartment unit.

Staff is presenting this petition to City Council for acceptance and
is  requesting that a public hearing be set for January 12, 1993, to
hear  protests,  if  any,  and  approve  the  establishment  of   an
assessment  district  in accordance with the Improvement Act of 1911
of the Streets and Highways Code.

Notices will be posted and occupants and  property  owners  will  be
notified  by  mail  of  the  time and date 15 days in advance of the
public hearing and a notice will be advertised in The Outlook in the
manner prescribed by State Law.

Copies of the signed petition, a  map  of  the  proposed  assessment
district  and  a  list  of  property  owners  and  occupants will be
available for review in the Council Chambers  at  the  time  of  the
public hearing.

BUDGET/FINANCIAL IMPACT

The 25 residents of this area reside at five residential properties.
In  addition  there  is one church in the area.  Since the church is
not  considered  a  residential  unit,  it  will  be  assessed   the
commercial rate.  The church is on a corner lot and will be assessed
$10.70 per side footage.   The  estimated  prorated  assessment  for
residential  property  owners  is $13.40 per front footage and $5.40
per side footage for corner lots.  Out of the six properties  to  be
assessed  four  are  corner lots, therefore, the City's share of the
assessment is higher than 50%.  The total estimated property  owners
share  of  assessments  for this area is $5,200.  The estimated cost
for a typical property owner's and other properties share on Arizona
Avenue  ranges  from $300 - $1,900 depending on lot size.  The total
estimated construction cost is $21,000.  A  grant  program  will  be
available for low to moderate income households.

Appropriation authority for the City's contribution is available  in
CIP   Account   No.  01-770-453-25491-8917-99155,  "New  Streetlight
Systems", in the amount of $15,800.00.  The remaining costs for  the
project   will   be   paid   through   property  owner  assessments.
Assessments will be paid upon completion of the  work  and  will  be
held  in a trust account #80-000-000-00000-9750-04289 for payment to
the contractor installing the streetlights.  Bonds are  then  issued
for   any  unpaid  assessments.   Bond  proceeds  are  paid  to  the
Contractor and the property owner(s) then  pay  the  bond  holder(s)
over time.

RECOMMENDATION

It is recommended that City Council:

     1.    Accept the streetlight petition for the  installation  of
           streetlights on Arizona Avenue -  from Franklin Street to
           Centinela Avenue;

     2.    Adopt the attached Resolution setting  a  public  hearing
           for January 12, 1993, and declare the City's intention to
           assess property owners  for  costs  and  issue  bonds  as
           security for unpaid assessments.

Prepared by:  Stan Scholl, Director of General Services
              Tony Antich, City Engineer

Attachment:   Resolution of Intention


                    RESOLUTION NUMBER

                        (CITY COUNCIL SERIES)

         A RESOLUTION OF INTENTION OF THE CITY  COUNCIL  OF
         THE  CITY OF SANTA MONICA SETTING A PUBLIC HEARING
         ON JANUARY 12, 1993 FOR THE PURPOSE OF DETERMINING
         WHETHER   OR   NOT   THE  PUBLIC  CONVENIENCE  AND
         NECESSITY    REQUIRE    THE    CONSTRUCTION     OF
         STREETLIGHTING  AND  DECLARING  ITS  INTENTION  TO
         CONSTRUCT STREETLIGHTING AND APPURTENANT  WORK  ON
         ARIZONA  AVENUE  FROM FRANKLIN STREET TO CENTINELA
         AVENUE AS SHOWN ON CITY DRAWING NO.  10042  WITHIN
         THE CITY OF SANTA MONICA

         WHEREAS, the City Council  of  the  City  of  Santa  Monica
purposes  to  initiate proceedings under the Improvement Act of 1911
for streetlighting improvements  on  Arizona  Avenue  from  Franklin
Street to Centinela Avenue; and

         WHEREAS, Section  19  of  Article  XVI  of  the  California
Constitution  provides  that  certain  specified debt limitation and
majority protest provisions shall not apply, if after the giving  of
such reasonable notice by publication and posting and the holding of
such public hearing as the City Council of the City of Santa  Monica
shall  have prescribed, the City Council by no less than four-fifths
vote of all members thereof finds and  determines  that  the  public
convenience  and  necessity  require the proposed improvements to be
made; and

         WHEREAS, Streets and Highways Code  Section  2804  provides
that the "Special Assessment, Investigation, Limitation and Majority
Protest Act of 1931" shall not apply  to  any  proceeding  otherwise
subject  thereto  when  said  improvement proceeding is by a Charter
City and said City has complied with the provisions of Section 19 of
the Article XVI of the California Constitution; and

         WHEREAS, the City of Santa Monica is a Charter City of  the
State of California,

         NOW, THEREFORE, THE CITY  COUNCIL  OF  THE  CITY  OF  SANTA
MONICA DOES RESOLVE AS FOLLOWS:

         SECTION  1.   The  City  Council   proposes   to   initiate
proceedings  for  the installation of streetlighting and appurtenant
work on the street shown on City Drawing No.  10042A  and  generally
known   as,   Phase  VI  -  Construction  of  High  Pressure  Sodium
streetlight systems on :

    ARIZONA AVENUE - from Franklin Street to Centinela Avenue;
within the City of Santa Monica.

         SECTION 2.   The  total  estimated  cost  of  the  proposed
improvement is twenty one thousand dollars ($21,000).

         SECTION 3.   Improvements  shall  be  conducted  under  the
Improvement  Act  of  1911,  which  is Division 7 of the Streets and
Highways Code of the State of California.

         SECTION 4.  The proposed work or improvement in the opinion
of City Council of the City of Santa Monica is of more than local or
ordinary public benefit, and City Council hereby proposes  that  the
district in the City of Santa Monica to be benefited by said work or
improvement and to be assessed to  pay  one-half  of  the  cost  and
expense thereof, is shown upon a certain map indicating the exterior
boundary thereof, which said Drawing No. 10042-A is on file  in  the
Office  of  the  City  Engineer.   The map hereby is referred to and
shall govern for all details as to the  extent  of  said  assessment
district.   The assessment district includes in general the lots and
parcels described in Section 1 above but reference hereby is made to
said  Drawing  for  all  details as to the extent of said assessment
district and for any variation between the  last  mentioned  general
description  and  the extent of said assessment district as shown on
said map.  All public streets or alleys, or portions thereof, hereby
are excepted from said district.

         SECTION 5.  The City will pay a portion  of  the  cost  and
expenses  of  the  work described herein, and the City Controller is
authorized  and  directed  to  pay   the   same   immediately   upon
confirmation of the assessment by City Council.

         SECTION 6.  Serial bonds bearing interest at  the  rate  of
8.8%  per  annum shall be issued to represent each assessment of One
hundred fifty dollars ($150.00) or more remaining unpaid for  thirty
(30)  days  after  the  recording of the warrant.  Said serial bonds
shall extend over a period ending nine (9) years from the second day
of  January  next  succeeding the next September 1st following their
date.  Payments on the principal of unpaid assessments and  interest
shall  be made by property owners to the City Treasurer and the same
shall be disbursed by him or as provided in the "Improvement Act  of
1911"  hereinafter  referred  to.   In  accordance  with Streets and
Highways Code  Section  6442,  the  first  two  percent  delinquency
penalty  authorized  by  such  section shall be retained by the City
Treasurer as the cost of servicing the delinquency.

         SECTION 7.  Notice is hereby given  that  on  Tuesday,  the
12th  day  of  January  12,  1993, at 7:30 p.m., in the City Council
Chambers located in City  Hall,  1685  Main  Street,  Santa  Monica,
California, there shall be a public hearing before said City Council
for the purpose of determining whether the  public  convenience  and
necessity  require  the  above-described  improvement  and  for  the
purpose of allowing any and all persons having any objections to the
proposed  work  or improvement to appear and show cause why the said
proposed work or improvement should not be carried out in accordance
with said Resolution of Intention.  Inquiries concerning this public
hearing should be directed to the Department  of  General  Services,
Engineering Division, at (310) 458-8721.

         SECTION 8.  The City Clerk shall give notice of the hearing
by  posting  a  copy  of  this Resolution in the manner described by
Streets and  Highways  Code  Section  5065  and  by  publication  as
hereinafter provided.  Any interested person may protest against the
proposed improvement in writing filed with the  City  Clerk  at  any
time  not  later  than  the  hour  set for the hearing in the manner
provided by Streets and Highways Code Section 5220.

         SECTION 9.  The Superintendent of Streets shall cause to be
conspicuously  posted  along  the  line of said contemplated work or
improvement and also doing all the  open  streets  within  the  said
district,  notice  of the passage of this Resolution of Intention in
the manner and form prescribed by law.

         The City Clerk hereby is directed to mail notices,  in  the
manner  and  form  prescribed  by  law,  of  the  adoption  of  this
Resolution to all persons owning real property in  the  hereinbefore
described  assessment  district, whose names and addresses appear on
the last equalized assessment roll for the City taxes or as known to
the City Clerk.

         SECTION 10.  The City Clerk hereby is directed  to  publish
this  Resolution  in  The Outlook on two successive dates, the first
publication is to be made not less than fifteen (15) days  prior  to
the date of the above public hearing.

         SECTION 11.   Pursuant  to  Public  contract  Code  Section
20433,  the  City Council hereby states that the property owners may
not contract for  the  improvements  and  that  the  City  shall  be
responsible  for letting and administering the construction contract
for this district.

         SECTION  12.   The  City  hereby  declares  that  Community
Development  Block  Grant  funds  may  be  applied  for  payment  of
assessments on property owned by low to moderate income households.

         SECTION 13.  The City Clerk shall certify to  the  adoption
of  the  Resolution,  and thereafter the same shall be in full force
and effect.

APPROVED AS TO FORM:


JOSEPH LAWRENCE
Acting City Attorney