June 3, 2025, Item #12DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA REPORT CityofPoway June 3, 2025 Honorable Mayor and Members of the City co.~il Eric Heidemann, Director of Public Works { Danielle Mel ntosh, Senior Management Analys.~ t (858) 668-4729 or [email protected] r"J' CITY COUNCIL Engineer's Report and Resolution Declaring the Intention to Levy and Collect Assessments within Poway Lighting District for Fiscal Year 2025-26 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 amendment (Proposition 218) 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 declaring the intention to levy and collect assessments, and an engineer's report which are included in this document as Attachment A and Attachment B, respectively. No increase is proposed to assessment rates during Fiscal Year (FY) 2025-26 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. The adoption of this resolution is the first step in a two-step process and serves to set the date for the required public hearing. The proposed assessments will not be considered for adoption until the public hearing scheduled for July 15, 2025. Recommended Action: It is recommended City Council adopt the Resolution to initiate the process required to levy and collect assessments for the upcoming fiscal year within Poway Lighting District, in accordance with state law, and to set the date for the public hearing, giving property owners the opportunity to review and comment on the proposed assessments. Discussion: The Lighting District was formed by City Council on May 12, 1986. As in previous years, it is proposed each parcel within the Lighting District pay an assessment according to benefit based on the latest 1 of744
June 3, 2025, Item #12available San Diego Association of Government (SAN DAG) traffic generation study (See Derivation of Benefit Factor, pages 12-13 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 maintenance and operation of street lighting along the City's major arterial 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 $3.74. Vacant parcels are proposed to be assessed at a partial rate of $1.87 (50 percent of $3.75) per benefit unit. Zone C assessments are collected to fund 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 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. 78. Section 22624 of the Streets and Highways Code requires City Council to approve an engineer's report and adopt a resolution of intention prior to establishing the annual budget. The engineer's report (Attachment B) is prepared each year by an outside engineering firm and provides a detailed, transparent analysis to support the proposed assessment. It also outlines the proposed FY 2025-26 budget and the resulting assessments. The assessments for FY 2025-26 are based on the Lighting District's operation and maintenance costs and are reflected on the FY 2025-26 property tax bills. No increases are proposed for the FY 2025-26 street lighting assessments for Zones A, B or C as revenues are sufficient for maintenance expenses. 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 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 FY 2025-26, 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 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. 2 of744
June 3, 2025, Item #12The number of assessed parcels may change from year to year as the result of property splits, property merges or lot-line adjustments by property owners. The following depicts the preliminary benefit data provided by the County: Zone Assessed Parcels Benefit Units Benefit Assessments A 11,832 22,127 $331,891 B 3,227 3,911 $14,632 C 15,059 25,996 $353,016 Environmental Review: This action is not subject to review under the California Environmental Quality Act (CEQA). Fiscal Impact: The assessment rate shall remain at the FY 2024-25 rates. Revenues collected at $15.00 for Zone A, $3.75 for Zone Band $13.58 for Zone C per benefit unit, an estimated total of $699,539, will be used for the Lighting District's maintenance costs during FY 2025-26. A General Fund contribution of $162,800 will be included with the FY 2025-26 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: WenKaserman Assistant City Manager 3 of744 Reviewed By: Alan Fenstermacher City Attorney Approved By: Chr~ City Manager
June 3, 2025, Item #12RESOLUTION NO. 25-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, DECLARING THE INTENTION TO LEVY AND COLLECT ASSESSMENTS WITHIN THE POWAY LIGHTING DISTRICT FOR FISCAL YEAR 2025-26 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 2024-25 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 $162,800; WHEREAS, under the provisions of Section 5 of Article XIII D, 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 2025-26 included in the staff report as Attachment B. 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, July 15, 2025, 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 assessment that is increased from the previous year, the proposed increase in the assessments 4 of744 ATTACHMENT A
June 3, 2025, Item #12Resolution No. 25-Page 2 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 Poway News Chieftain, 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, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Poway, California on the 3rd day of June, 2025 by the following vote, to wit: AYES: NOES: ABSTAINED: ABSENT: DI SQUALi Fl ED: Steve Vaus, Mayor ATTEST: Carrie Gallagher, CMC, City Clerk 5 of744