Item 10-A
Council Meeting: 4/14/98 Santa Monica, CA
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to Hold a Public Hearing, Accept the
Certified Results of the Streetlight Installation
Assessment Election and Approve the Formation of the
Assessment District in Conformance with the Right to
Vote on Taxes Act (Prop 218)
Introduction
This report recommends that the City Council accept the certified
results of the streetlight installation assessment election as
tabulated by the City Clerk and approve the formation of a
Proposition 218 assessment district for the installation of new
streetlights on the following streets:
23rd Street - from Arizona Avenue to Wilshire Boulevard
29th Street - from Ocean Park Boulevard to Pearl Street
Lincoln Blvd. - from Montana Avenue to Alta Avenue
Princeton St. - from Wilshire Boulevard to Washington Ave.
Prospect Ave. - from Marine St to the end of st (dead end)
Yale Street - from Montana Avenue to Washington Avenue.
The report also recommends that the City Council adopt the
attached resolution to assess
property owners for construction costs in conformance with the
Right to Vote on Taxes Act
(Proposition 218) and order the work to begin.
Background
In accordance with Santa Monica Municipal Code 7.04.860,
whenever 60% of the occupants of the residential units in any
area petition the City Council to institute proceedings for
residential streetlighting, the City Council shall institute
those proceedings under the Improvement Act of 1911 to provide
residential streetlighting to the area.
In 1995 and 1996, successful petitions (those with greater than
60% support) were received from residents on these streets:
23rd Street - from Arizona Avenue to Wilshire Boulevard
29th Street - from Ocean Park Boulevard to Pearl Street
Lincoln Blvd. - from Montana Avenue to Alta Avenue
Princeton St - from Wilshire Boulevard to Washington Ave.
Prospect Ave. - from Marine to the end of street (dead end)
Yale Street - from Montana Avenue to Washington Avenue
Rent Control staff has reviewed these petitions and determined
that they conform with Rent Control Regulations for pass-through
of assessments to tenants.
These locations previously went through the preliminary stages of
the 1911 Act assessment proceedings. Public meetings were held
between staff and affected property owners and residents on
December 10, 1995, and October 10, 1996, to discuss the location
of streetlights, types of streetlights available (decorative or
standard) and approximate costs. The residents of Yale and
Princeton Streets opted for the more expensive decorative style
streetlight, while the residents of Lincoln Boulevard, Prospect
Avenue, 23rd Street, and 29th Street opted for the standard
streetlight. The City Council approved the assessment district
during the October 22, 1996 City Council meeting and ordered the
construction to begin. Shortly thereafter, on November 5, 1996,
California voters approved Proposition 218.
The passage of Proposition 218 essentially invalidated the
proceedings for this streetlight assessment district. According
to Proposition 218, assessment districts require two public
hearings and eligible voters are able to vote, using ballots, on
the proposed assessment. Eligible voters for residential
properties are the residents of the streets included within the
assessment district, either owners or renters. Eligible voters
for non-residential properties are the owners of the properties.
The 1911 Improvement Act proceedings included only one public
hearing and eligible voters were not given the opportunity to
vote on the assessment. On January 15, 1998, the City Council
again accepted the petitions for these streets and adopted a
Resolution of Intention to re-establish the district in
accordance with Proposition 218 requirements. This resolution
set public hearings on March 10, 1998 and April 14, 1998.
Notices of the City's intent to form an assessment district and
hold public hearings were mailed to affected persons and
published in The Outlook forty-five (45) days in advance of the
time and place of the public hearing in accordance with State
law. In addition to the notice, eligible voters were sent a
ballot and return envelope with which they were able to vote for
or against the assessment.
On February 24, 1998, the City Council canceled the March 10,
1998 meeting. Because of the cancellation, the streetlight
assessment district hearing date and date by when to submit
ballots was changed to the March 24, 1998 meeting. Staff mailed
a notice to all effected persons notifying them of the new public
hearing date and the new date to submit ballots.
In accordance with Proposition 218, an Engineer's Report was
prepared which determined the general and special benefits of
streetlight installation. General benefits enhance the public as
a whole, while special benefits enhance a particular parcel. A
copy of this report is available in the office of the City
Engineer and the office of the City Clerk. According to
Proposition 218, parcels may only be assessed for the special
benefits or any portion thereof. The report presents the
Engineer's determination that the special benefit of streetlight
installation is 80% of the total benefit for residential
properties and 81% of the total benefit for non-residential
properties. Consistent with recent City policy, assessments will
be waived for non-profit organizations that can provide evidence
of receiving a welfare exemption from the Los Angeles County Tax
Assessor. The City will fund these assessments.
Ballot Results
A public hearing was held at the March 24, 1998 City Council
meeting and ballots were accepted until the end of the meeting.
Ballots were tallied proportional to the financial obligation of
each affected property, (e.g., a property that has work totaling
$300 received 300 votes and a property that has $5,000 worth of
work received 5,000 votes). The City Clerk received all ballots
and kept them secured until the voting was closed on March 24,
1998. There was a total of 336 ballots mailed to affected
property owners with131 completed ballots returned. The final
vote count was 71 votes in the affirmative, 58 votes in the
negative, 1 returned ballot was not marked "yes" or "no", and 1
ballot was received late. The last two ballots are not included
in the tally. The total of affirmative ballots is $53,461.77 and
the total of negative ballots is $40,333.08. The ballot tally
resulted in a majority of eligible voters, proportional to their
financial obligation, voting in the affirmative to form the
assessment district.
Discussion
All properties are assessed for streetlighting based upon the
parcel frontage and the property's location relative to the
street being improved. If the legal address of the assessed
parcel is on the street receiving streetlights, the parcel will
be assessed at the front footage rate. If the legal address of
the parcel is on the cross street of the street receiving
streetlights (i.e., some corner parcels), the parcel will be
assessed at the side footage rate. In accordance with past City
policy, the proposed assessment spread for standard style
streetlights is:
TYPE OF TYPE
PROPERTY OF FOOTAGE CITY SHARE ELIGIBLE VOTER SHARE
RESIDENTIAL FRONT FOOTAGE 50% 50%
SIDE FOOTAGE 80% 20%
NON-RES. FRONT FOOTAGE 20% 80%
SIDE FOOTAGE 60% 40%
These proposed assessment amounts are less than
the special benefit cost of streetlighting as identified in the
Engineer's report and are therefore in compliance with
Proposition 218.
The City Council may order the improvement work to begin after
the close of this public hearing. Competitive bids for the
project will be solicited by the City, and a contract will be
awarded by City Council to the lowest responsible bidder.
Property owners may pay for the improvements in full after
construction is completed, or they may opt to pay the bond holder
in installments over a ten-year period at an interest rate of
8.5%. The City Council must authorize the sale of bonds to
accommodate installment payments.
These proceedings shall be conducted in accordance with the Right
to Vote on Taxes Act (Proposition 218) and the Municipal
Improvement Act of 1911 (California Streets and Highways Code
Division 12).
Budget/Financial Impact
The total estimated cost for this project is $382,342.15 and
includes labor and incidental costs such as staff time for
engineering surveys, public notifications, advertisements,
construction management, inspections, and construction costs.
The total assessment is based on an estimated cost of $32.00 per
lineal foot for standard streetlights, multiplied by the total
lineal feet of property fronting the streets (both sides)
petitioned for improvement. The estimated prorated assessment
for residential property owners is $16.00 per lineal foot of
property frontage; the City pays an equal amount. The estimated
prorated assessment for non-residential property owners is $25.60
per lineal foot of property frontage; the City pays $6.40 per
lineal foot of property frontage. An additional charge of $6.00
per lineal foot is to be added to the above property owner
assessment cost for streets that opted for the decorative style
streetlights (Yale Street and Princeton Street). The City does
not contribute any additional funding for the added cost of the
decorative style streetlight. Federal Community Development
Block Grant funds may be available to assist low-to-moderate
income households with the costs of the streetlight assessment.
In accordance with City policy, non-profit organizations which
receive a welfare exemption from the Los Angeles County Tax
Assessor shall be exempt from this assessment.
The estimate for a typical residential property is approximately
$800 for standard streetlights on a lot with a 50-foot frontage
dimension. The proposed breakdown of costs is as follows:
Estimated property owner assessments $ 181,275.27
Estimated City contribution $ 201,066.88
Total project estimate $ 382,342.15
Funding for the City portion of the project is available in the
following accounts:
DESCRIPTION BUDGET ACCOUNT NUMBER
New streetlight $124,049.38 01-770-453-20094-8905-99155
New streetlight $77,017.50 01-770-453-20095-8905-99155
TOTAL $201,066.88
The remaining costs for the project in the amount of $181,275.27
will be paid through the property owner assessments. Assessments
will be paid upon completion of the work and will be held in a
Trust Account Number 80-000-000-00000-9750-04289 pending payment
to the contractor. Bonds are issued for any unpaid assessments.
Bond proceeds are paid to the contractor or assignee, and the
property owner(s) then reimburse the bond holder(s) over time.
Recommendation
Staff recommends that the City Council:
1. Open the public hearing;
2. Hear protests;
3. Close the public hearing;
4. Accept the certified results of the assessment district;
5. Approve the formation of the above assessment district;
6. Adopt the attached resolution; and,
7. Order the work to begin.
RESOLUTION NUMBER
(CITY COUNCIL SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
FINDING THAT THE PUBLIC CONVENIENCE AND NECESSITY REQUIRE THE
CONSTRUCTION OF STREETLIGHT INSTALLATION AND APPURTENANT WORK, IN
CONJUNCTION WITH THE FY 1997-98 STREETLIGHT INSTALLATION
ASSESSMENT DISTRICT.
WHEREAS, the City Council of the City of Santa Monica on
January 13, 1998 adopted Resolution of Intention Number 9231
(CCS) declaring its intention to order work described therein to
be done; and
WHEREAS, Resolution of Intention Number 9231 (CCS) was duly
and legally published as required by law, notice was given in a
manner required by law and all written objections and protests to
the proposed work or the extent of the district were heard and
considered by the City Council; and
WHEREAS, public hearings have been held pursuant to
Resolution of Intention Number 9231 (CCS) and the laws and
Constitution of the State of California on the proposed
construction of streetlight systems as described in Resolution
Number 9231 (CCS), on the following City streets:
23rd Street - from Arizona Avenue to Wilshire Boulevard
29th Street - from Ocean Park Boulevard to Pearl Street
Lincoln Blvd. - from Montana Avenue to Alta Avenue
Princeton St. - from Wilshire Boulevard to Washington Avenue
Prospect Ave. - from Marine to the end of street (dead end)
Yale Street - from Montana Avenue to Washington Avenue.
WHEREAS, said improvements have been considered fully,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
SECTION 1. The public interest and convenience require,
and the City Council of the City of Santa Monica hereby orders,
the work described in Resolution Number 9231 (CCS) to be done on
the following City streets:
23rd Street - from Arizona Avenue to Wilshire Boulevard
29th Street - from Ocean Park Boulevard to Pearl Street
Lincoln Blvd. - from Montana Avenue to Alta Avenue
Princeton St. - from Wilshire Boulevard to Washington Avenue
Prospect Ave. - from Marine to the end of street (dead end)
Yale Street - from Montana Avenue to Washington Avenue.
A public hearing was conducted and protests were received. Any
and all of said protests and objections of every kind and nature
to the proposed work or to the extent of the district to be
assessed be, and the same are hereby, overruled and denied.
SECTION 2. The City Council hereby finds and determines
that the "Special Assessment Investigation, Limitation, and
Majority Protest Act of 1931" shall not apply to the making of
the improvements.
SECTION 3. In accordance with the Right to Vote on Taxes
Act (Proposition 218), a tally of returned ballots has
determined eligible voter support of the district exists.
SECTION 4. Improvements shall be conducted under the
Improvement Act of 1911, set forth in the Streets and Highways
Code of the State of California, and the Street Superintendent
and the City Attorney presented to the City Council the
Resolution of Intention required by the Improvement Act to
initiate the proceedings for the improvements.
SECTION 5. Reference hereby is made to Resolution Number
9231 (CCS) for a description of the work, the assessment
district, and for further particulars.
SECTION 6. The City Clerk shall certify to the adoption of
this Resolution, and thenceforth and thereafter the same shall be
in full force and effect.
APPROVED AS TO FORM:
Marsha Jones Moutrie
City Attorney