June 7, 2022, Item #10DATE: TO: FROM: CONTACT: SUBJECT: Summary: AG EN DA REPORT City of Poway June 7, 2022 Honorable Mayor and Members of the City Cou~il Eric Heidemann, Director of Public Works ?z CITY COUNCIL Will Wiley, Assistant Director of Public Works for Maintenance Operations (858) 668-4705 or [email protected] Engineer's Report and Resolution Declaring the Intention to Levy and Collect Assessments Within Poway Lighting District for Fiscal Year 2022-23 and Set Date for Public Hearing Maintenance of public lighting improvements within the City of Poway Lighting District (Lighting District) requires funding. These improvements include all street lighting facilities within the City's boundaries, including, but not limited to streetlights, traffic signals, lighted street signs and flashing beacons. Public parks, facilities and parking lots are not included in the Lighting District. The California Landscape and Lighting Act of 1972 (ACT) and its amendments (Proposition 218 and SB 919) allow for the collection of assessments from parcels annexed into the Lighting District for the maintenance and operation of these facilities. It is the City's intent to collect assessments under Chapter 3 of the ACT. The ACT requires a resolution (Attachment A) declaring the intention to levy and collect assessments and an engineer's report (Attachment B). No increase is proposed to assessment rates during Fiscal Year 2022-23 for Zones A, B or C; however, some parcel assessments will increase due to land development, land use designation changes and the creation of new subdivisions. Recommended Action: It is recommended the City Council adopt the Resolution. Discussion: The Lighting District was formed by the City Council on May 12, 1986. As in previous years, it is proposed that each parcel within the Lighting District pay an assessment according to benefit based on the latest available San Diego Association of Government (SANDAG) traffic generation study (See Derivation of Benefit Factor, pages 8-10 of the engineer's report, Attachment B). Zone A parcels are those with street lighting within their immediate vicinity. These parcels also share in the equitable funding for the maintenance and operation of street lighting along the City's major 1 of 484
June 7, 2022, Item #10arterial streets. Therefore, assessments collected within this zone shall be assessed at the full rate (100 percent) of $15.00 per benefit unit. Vacant parcels are proposed to be assessed at a 50 percent rate of $7.50 per benefit unit. Zone B parcels are those that do not have benefit of immediate street lighting, but equitably share in the maintenance and operation funding for street lighting along the City's major arterial streets. Therefore, assessments collected within this zone shall be proportionally assessed at the partial rate of $3.75 (25 percent of $15.00) per benefit unit. Because the San Diego County Assessor (County) lists funds in even amounts on county tax statements, the benefit unit assessment will be $3.76. Vacant parcels are proposed to be assessed at a partial rate of $1.88 (50 percent of $3.75) per benefit unit. Zone C assessments are collected to fund the operation and maintenance of traffic signals and flashing beacons within the City boundaries. It has been determined all parcels within the Lighting District benefit equally. Therefore, Zone C parcels are assessed at the full rate of $13.58 per benefit unit for the maintenance of traffic signal lighting and flashing beacons. Vacant parcels are proposed to be assessed at a 50 percent rate of $6.79 which, due to the County requirement cited previously, will be assessed as $6.80. Section 22624 of the Streets and Highways Code requires the City Council to approve an engineer's report and adopt a resolution of intention prior to establishing a budget each year. The engineer's report (Attachment B) outlines the proposed Fiscal Year 2022-23 budget and resulting assessments. The assessments for Fiscal Year 2022-23 are based on the Lighting District's operation and maintenance costs and are reflected on the Fiscal Year 2022-23 property tax bills. No increases are proposed for the Fiscal Year 2022-23 street lighting assessments for Zones A, B or C. Zone A assessments will remain at $15.00, Zone B at $3.75 and Zone C at $13.58 per benefit unit. Assessments are proposed to be collected for vacant parcels dependent on their benefit to street light accessibility (as defined by Zone A and Zone B) at a rate of 50 percent. Proposition 218, passed by the California voters on November 5, 1996, expands the requirements for public notification and imposes the requirement of special district balloting. Beginning July 1, 1997, all existing, new or increased assessments shall comply with Article XIII D as added to the California Constitution. Since no increases or new assessments are proposed for Fiscal Year 2022-23, Lighting District streetlighting has been determined to be exempt from the procedures and approval process set forth in Section 4 of this Article. However, this does not preclude increases in assessments in future years. Subsequent increases in such assessments shall be subject to the procedures and approval process set forth in Section 4 of Article XIII D. Proposition 218 requires that the City separate "General Benefit" from "Special Benefit". General Benefit is a maintenance and service provided to the public-at-large. Special Benefit is a maintenance and service provided at a level greater than the service provided to the public-at-large. The City may assess for Special Benefit conferred upon parcels. General Benefit shall be funded as it has in the past for this Lighting District through the collection of an Ad Valorem (General) Tax collected each year on the property tax roll from each property owner. The following depicts the preliminary benefit data provided by the County: 2 of 484
June 7, 2022, Item #10Zone Assessed Parcels Benefit Units Benefit Assessments A 11,716 22,152 $332,281.00 B 3,067 3,818 $14,287.00 C 14,782 25,848 $351,009.00 Note: Estimated benefit units are rounded up and multiplying times rate will not calculate exactly. As required under assessment law (Landscape and Lighting Act of 1972 and its amendments), an engineer's report and assessment recommendations must be presented at a public hearing for Council consideration and public comment on an annual basis, which is scheduled for June 21, 2022. Preliminary assessment tabulations will be available for public review prior to the June 21, 2022, City Council meeting. Final tabulations will be based on County equalized tax roll after July 1, 2022, and will be noted on property tax bills for Fiscal Year 2022-23. The engineer's report (Attachment B) has been found technically correct as presented. Environmental Review: This action is not subject to review under the California Environmental Quality Act (CEQA). Fiscal Impact: The Lighting District does not include a voter-approved inflater which puts pressure on service levels as expenses increase over time due to inflation while revenues do not. The assessment rate shall remain at the Fiscal Year 2021-22 rates. Revenues collected at $15.00 for Zone A, $3.75 for Zone B and $13.58 for Zone C per benefit unit, an estimated total of $697,577.00, will be used for the Lighting District's maintenance costs during Fiscal Year 2022-23. A General Fund contribution of $139,513.00 will be included with the Fiscal Year 2022-23 proposed budget for reimbursement of Lighting District's costs that provide general benefit to the City. Public Notification: None. Attachments: A. Resolution B. Engineer's Report Reviewed/ Approved By: WendY serman Assistant City Manager 3 of 484 Reviewed By: Alan Fenstermacher City Attorney Approved By: City Manager
June 7, 2022, Item #10RESOLUTION NO. 22-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, DECLARING THE INTENTION TO LEVY AND COLLECT ASSESSMENTS WITHIN POWAY LIGHTING DISTRICT FOR FISCAL YEAR 2022-2023 AND APPROVING THE ENGINEER'S REPORT WHEREAS, the City Council of the City of Poway desires to levy and collect assessments within the Poway Lighting District for the purpose of maintaining, servicing, operating and administering public lighting facilities including, but not limited to, street lights, traffic signals, lighted street signs and flashing beacons, in the City of Poway as shown in the Poway Lighting District Engineer's Report, included in the staff report as Attachment B, that is on file in the Office of the City Clerk, pursuant to the Streets and Highways Code; WHEREAS, assessments will not increase from the Fiscal Year 2021-22 assessment rate of $15.00 per benefit unit per year for Zone A, $3. 75 per benefit unit per year for Zone B and $13.58 per benefit unit per year for Zone C; WHEREAS, under Article XIII D, Section 4 of the California Constitution, a City general benefit contribution has been calculated as the average General Fund expenditure for the maintenance of street lighting and traffic signals. This general benefit contribution has been calculated to be $139,513.00; WHEREAS, under the provisions of Section 5 of Article XIIID, the existing assessments in the Lighting District are exempt from both the substantive and procedural requirements outlined in Section 4 of the Article, until such time that the assessments are increased; and WHEREAS, the public interest and convenience require the maintenance, service and operation of street lighting, lighted street signs, traffic signals and flashing beacons within said territory. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows: SECTION 1: The foregoing recitals are true and correct. SECTION 2: Proposed assessments are as detailed in the Engineer's Report for Poway Lighting District for Fiscal Year 2022-23 included in the staff report as Attachment Band attached hereto. SECTION 3: Notice is hereby given that a public hearing is scheduled in the regular meeting place of the City Council, being the Council Chambers, City Hall, on the following date and time: Tuesday, June 21, 2022, at 7:00 p.m. At that time, this legislative body will hear protests or objections in reference to the annual levy of assessments and to any other matters contained in this resolution. Any persons who wish to object to the proceedings or the annual levy should file a written protest with the City Clerk prior to the time set for the public hearing. If there is a majority protest against the levy of an annual 4 of 484 ATTACHMENT A
June 7, 2022, Item #10Resolution No. 22-Page 2 assessment that is increased from the previous year, the proposed increase in the assessments shall be abandoned. A majority protest exists if, upon the conclusion of the hearing, written protests filed and not withdrawn, represent property owners owning more than 50 percent of the assessable area of land within the District. SECTION 4: The City Clerk is hereby authorized and directed to give notice as required by law by causing a copy of this Resolution to be published in the San Diego Union Tribune, a newspaper of general circulation in the City of Poway, not less than ten (10) days prior to the date set for the public hearing. PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California on the 7th day of June, 2022 by the following vote, to wit: AYES: NOES: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Carrie Gallagher, CMC, City Clerk 5 of 484