June 21, 2022, Item #16~ AGENDA REPORT City of Poway CITY COUNCIL DATE: TO: FROM: CONTACT: SUBJECT: Summary: June 21, 2022 Honorable Mayor and Members of the City Co~rcil Eric Heidemann, Director of Public Works f kr ~ Will Wiley, Assistant Director of Public Works for Maintenance Operations (858) 668-4705 or [email protected] Resolution Establishing Assessments for Poway Lighting District to be Collected on the San Diego County Property Tax Roll for Fiscal Year 2022-23 On June 7, 2022, the City Council adopted Resolution No. 22-032 declaring the intention to levy and collect assessments within the Poway Lighting District (District) and set the public hearing for June 21, 2022. The City Council is to consider the approval of a resolution (Attachment A) authorizing the levy and collection of assessments for each affected parcel within the District for Fiscal Year 2022-23. Fiscal Year 2022-23 assessment rates for the District's Zone A, Zone B and Zone C are proposed to remain unchanged at the Fiscal Year 2021-22 rates of $15.00, $3.76 and $13.58 per benefit unit per year, respectively. Recommended Action: It is recommended the City Council take public input, close the public hearing and adopt the Resolution. Discussion: The District was formed by the City Council on May 12, 1986. There are 16,282 parcels in the City of Poway. The District currently assesses 14,782 of these parcels. The benefit units derived from these assessable parcels total 22,152 for Zone A, 3,818 for Zone Band 25,848 for Zone C. Zone A parcels have street lighting within their immediate vicinity and share equitably in benefit from major arterial street lighting. Zone A assessments are based on $15.00 per benefit unit per year for improved parcels and $7.50 per benefit unit per year for vacant, buildable parcels. Zone B parcels do not have benefit of immediate street lighting but share equitably in benefit from major arterial street lighting. Zone B assessments are based on $3.75 per benefit unit per year for improved parcels. Because the San Diego County Assessor (County) lists funds in even amounts on 1 of 5
June 21, 2022, Item #16county 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, which fund the operation and maintenance of traffic signals, safety lights, flashing beacons, and lighted street name signs within the City boundaries, are collected from all accessible parcels in Poway. Zone C assessments are based on $13.58 per benefit unit per year for improved parcels and $6.80 per benefit unit per year for vacant, buildable parcels. Public parks, facilities and parking lots are not included in the District. The Fiscal Year 2022-23 assessments are based on the District's operations, maintenance, administration and capital replacement costs. Assessments are proposed to remain unchanged from the Fiscal Year 2021-22 rates. Total revenues are estimated to be $1,416,296.00, which includes $332,281.00 in Zone A assessments, $14,287.00 in Zone B assessments, $351,009.00 in Zone C assessments, the annual ad valorem tax (general tax contributions), City General Benefit contribution, and estimated interest earnings. In Fiscal Year 2019-20, approximately 3,300 low pressure sodium (LPS) lights were converted to light emitting diodes (LEDs). Since the LED conversion, the District has saved an average of 66 percent over the previous two (2) fiscal years on energy costs compared to the FY 2019-20 budget, the last year energy costs for LPS were incorporated. Beginning in Fiscal Year 2019-20, $250,000.00 will be requested each year over a five-year period to replace aging signalized intersections. In Fiscal Year 2022-23, the District will be in its fourth year of signalized intersection equipment replacement. Each fiscal year, the capital improvement project fund commitments will be re-evaluated to ensure available funding for ongoing capital improvements. The City Council's approved Fiscal Year 2022-23 Engineer's Report is on file in the Office of the City Clerk, 13325 Civic Center Drive and the Department of Public Works, 14467 Lake Poway Road, Poway, California. Environmental Review: This action is not subject to review under the California Environmental Quality Act (CEQA). Fiscal Impact: The 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. Fiscal Year 2022-23 District Zone A, Zone Band Zone C assessment rates remain unchanged from the Fiscal Year 2021-22 rate of$15.00, $3. 76 and $13.58 per benefit unit per year, respectively. Revenue for the District is comprised of $697,577.00 from assessments, $93,900.00 in estimated interest earnings, $485,306.00 in general tax contributions and $139,513.00 in General Fund contributions. Estimated revenues are sufficient to cover ongoing maintenance and capital improvement projects. Public Notification: A Notice of Public Hearing was published in the San Diego Union Tribune on Friday, June 10, 2022. Pursuant to Government Section 53753, all public notification requirements have been met. No responses have been received regarding the proposed assessments at the time this report was written. 2 ofS
June 21, 2022, Item #16Attachments: A. Resolution Reviewed/ Approved By: Assistant City Manager 3 of 5 Reviewed By: Alan Fenstermacher City Attorney Approved By: cf#§} City Manager
June 21, 2022, Item #16RESOLUTION NO. 22-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, ESTABLISHING ASSESSMENTS FOR POWAY LIGHTING DISTRICT TO BE COLLECTED ON THE SAN DIEGO COUNTY PROPERTY TAX ROLL FOR FISCAL YEAR 2022-23 WHEREAS, the City Council of the City of Poway desires to have Lighting District assessments collected on the San Diego County Property Tax Roll; WHEREAS, pursuant to the provisions of the City of Poway Resolution No. 00-035 (Policies for Lighting District) and Assessment law being the "Landscape and Lighting Act of 1972" (being part 2 of Division 15 of the California Streets and Highways Code), applicable provisions of "Proposition 218" (being Article XIII C of the California Constitution), and provisions of the "Proposition 218 Omnibus Implementation Act" (being California Senate Bill 919), and in accordance with the Resolution of Intention, being City of Poway Resolution No. 22-032 adopted by the City Council of the City of Poway, County of San Diego, State of California, in connection with the proceedings for Poway Lighting District, the Assessment Engineer for the City of Poway has submitted an Engineer's Report for the District as required by California Street and Highways Code, Section 22565; WHEREAS, on June 7, 2022, at a regular meeting of the Poway City Council, the amounts to be collected have been set forth in a public Engineer's Report; WHEREAS, on June 21, 2022, the City Council held a duly advertised public hearing to solicit comments from the public, both for and against, relative to this matter; and WHEREAS, this action is authorized by the laws of the State of California. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows: SECTION 1: The Assessment Rates for three (3) zones are as follows: Zone A: Zone B: Zone C: $15.00 per benefit unit per year; $7.50 per benefit unit per year for vacant parcels $ 3. 76 per benefit unit per year; $1 .88 per benefit unit per year for vacant parcels $13.58 per benefit unit per year; $6.80 per benefit unit per year for vacant parcels SECTION 2: The sum of assessments to be collected on the Fiscal Year 2022-23 San Diego County Property Tax Roll to provide for costs of administering, operating and maintaining the Poway Lighting District are as follows: Zone A: Zone B: Zone C: 4of 5 $332,281.00 $ 14,287.00 $351,009.00 ATTACHMENT A
June 21, 2022, Item #16Resolution No. 22-Page 5 SECTION 3: Under assessment law, the City of Poway's General Benefit Contribution has been calculated as $139,513.00. PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California on the 21st 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 5