Engineer’s Report
Fiscal Year 2022-2023
City of Rialto
Street Light Maintenance District No. 1
Prepared For
July 2022
Table of Contents
Sections
Section i. Engineer’s Statement ________________________________________________ i Section 1. Plans and Specifications______________________________________________ 1 Section 2. Cost Estimate ______________________________________________________ 2 Section 3. Method of Apportionment ___________________________________________ 4 Section 4. Assessment _______________________________________________________ 8 Tables
Table 2-1. Fiscal Year 2022-2023 Cost Estimate ____________________________________ 2 Table 2-2. Expenditure Detail __________________________________________________ 3 Appendices
Appendix A. Assessment Roll __________________________________________________ A-1 Appendix B. Boundary Map ___________________________________________________ B-1 i. Engineer’s Statement
City of Rialto Street Light Maintenance District No. 1
Engineer’s Report for Fiscal Year 2022-2023 i
AGENCY: CITY OF RIALTO
PROJECT: STREET LIGHT MAINTENANCE DISTRICT NO. 1
TO: CITY COUNCIL
CITY OF RIALTO
STATE OF CALIFORNIA
Report Pursuant to "Landscaping and Lighting Act of 1972" Pursuant to direction from the City Council (the “City Council”) of the City of Rialto (the “City”), State of California, submitted herewith is the Engineer’s Report for Street Light Maintenance District No. 1 (the "Report"), consisting of the following parts, pursuant to the provisions of Division 15, Part 2 of the Streets and Highways Code of the State of California, being the "Landscaping and Lighting Act of 1972" (the “1972 Act”), as amended, commencing with Section 22500, and which is in accordance with Resolution No. 7899 adopted by the City Council, San Bernardino County, California ordering the preparation of the Report for Street Light Maintenance District No. 1 (the “District” or “SLMD No. 1”). This Report is applicable for the ensuing 12‐month period, being the Fiscal Year commencing July 1, 2022, to June 30, 2023.
S
ECTION 1 PLANS AND SPECIFICATIONS of the improvements to be maintained and/or improved for Fiscal Year 2022‐2023. The plans and specifications show and describe the existing improvements and are sufficient in showing and describing the general nature, location, and extent of the improvements.
SECTION 2 A COST ESTIMATE of the improvements to be maintained and‐or improved for the mentioned Fiscal Year.
SECTION 3 The METHOD OF APPORTIONMENT showing the proportionate amount of the assessment to be charged in proportion to the benefits to be received by each lot or parcel within the exterior boundaries as shown in Appendix B.
SECTION 4 An ASSESSMENT showing the proportionate amount of the assessment to be charged in proportion to the benefits to be received by each lot or parcel within the boundaries of the District, as shown in Appendix B.
SECTION 5 An ASSESSMENT DIAGRAM of the District. Said Diagrams shall show the boundaries of the District.
Reference is made to the San Bernardino County (the “County”) Assessor's Maps for a detailed description of the lines and dimensions of any lots or parcels. The lines and dimensions of each lot shall conform to those shown on the County Assessor's Maps for the Fiscal Year to which the Report applies.
i. Engineer’s Statement
City of Rialto Street Light Maintenance District No. 1
Engineer’s Report for Fiscal Year 2022-2023 ii
I, Matthew E. Webb, a Professional Civil Engineer (employed at Albert A. Webb Associates and retained through an agreement between Webb Municipal Finance, LLC and my employer), acting on behalf of the City of Rialto, pursuant to the Act do hereby assess and apportion the total amount of the costs and expenses upon the parcels of land within Street Light Maintenance District No. 1 liable therefore and benefited thereby, in proportion to the estimated benefits that each parcel receives, respectively, from said maintenance, works of improvement, and appurtenances.
Executed this day of 2022.
ALBERT A. WEBB ASSOCIATES
MATTHEW E. WEBB
PROFESSIONAL CIVIL ENGINEER NO. 37385
ENGINEER OF WORK
ON BEHALF OF THE CITY OF RIALTO
STATE OF CALIFORNIA
Final approval, confirmation and levy of the annual assessment and all matters in the Engineer's Report were made on the day of 2022, by adoption of Resolution No. by City Council.
CITY CLERK
CITY OF RIALTO
STATE OF CALIFORNIA
A copy of the Assessment Roll and Engineer's Report were filed in the City Clerk’s Office on the day of , 2022.
CITY CLERK
CITY OF RIALTO
STATE OF CALIFORNIA
City of Rialto Street Light Maintenance District No. 1
Engineer’s Report for Fiscal Year 2022-2023 iii
i. Engineer’s Statement
WHEREAS, on June 14, 2022, the City Council, under the Act, adopted i ts Resolution Initiating Proceedings for the Levy and Collection of Assessments and the Preparation of an Engineer’s Report for SLMD No. 1; Whereas , the Resolution of I ntention directed Webb Municipal Finance , LLC, to prepare and file a report presenting plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the maintenance, operation and servicing of the improvements for SLMD No. 1 for the referenced Fiscal Year, a diagram for SLMD No. 1 showing the area and properties to be assessed, and an assessment of the estimated costs of the maintenance, operation and servicing of the improvements, assessing the net amount upon all assessable lots and/or parcels within SLMD No. 1 in proportion to the special benefit received;
1. Plans and Specifications
City of Rialto Street Light Maintenance District No. 1
Engineer’s Report for Fiscal Year 2022-2023 1
Overview
This Report describes the District, the improvements, and the proposed assessments to be levied against properties in connection with the benefits the properties will receive from the maintenance and servicing of the District improvements for Fiscal Year 2022 -2023. The annual assessments to be levied on prop erties within the District provide a funding source for the continued operation and maintenance of local lighting and landscaping improvements installed in connection with the development of properties within the District. Each fiscal year, the City establishes the District’s assessments based on an estimate of the costs to maintain, operate and service the lighting and landscaping improvements and based upon available revenues including fund balances, City contributions and assessment limits. The costs of the improvements and the proposed annual assessments budgeted and assessed against properties within the District may include: the estimated expenditures for regular annual maintenance and repairs; incidental expenditures related to the operation and admin istration of the District; deficits or surpluses from prior years; revenues from other sources; and the collection of adequate funds for operational reserves or periodic expenditures including installments collected for long -term improvement projects. Each parcel is assessed proportionately for only those improvements, services, and expenses for which the parcel will receive special benefit.
The word “parcel,” for the purposes of this Report, refers to an individual property assigned its own Assessor’s Parcel Number (“APN”) by the County Assessor’s Office. The County Auditor/Controller uses Assessor’s Parcel Numbers and specific Fund Numbers to identify properties to be assessed on the tax roll for the special benefit assessments.
Description of Improvements and Services
Generally, the work to be performed consists of the annual maintenance, operation and servicing costs for street lighting and landscaping which were required as a condition of approval for various developments at specified locations within the City. Annual costs include, but are not limited to, maintenance, electrical and incidental expenses, and the costs of maintaining trees located in the public right-of-way.
The existing streetlight improvements are owned either by the Southern California Edison Company, the State of California Department of Transportation, or the City. Facilities owned by either the Southern California Edison Company or the State of California Department of Transportation were constructed in accordance with plans and specifications on file with the respective owners. Plans and specifications for street light facilities constructed by or for the City are on file in the office of the City Engineer.
Reference is hereby made to said plans and specifications and they are by reference made a part of this report to the same extent as if said plans and specifications were attached hereto.
The Anticipated Annual Cost
The costs for the maintenance district include but are not limited to:
• Energy costs
• Maintenance costs, including staff; inventory; maintenance, servicing, and repair of all equipment, tools, and vehicles; and personnel training for street lighting, street trees and park landscape • Reconstruction and repair contracts, including defective service pedestals, vandalism, and circuitry repair • Capital improvement costs
• Incidental costs, including engineering and legal expenses, finance department expenses for the processing of Edison payments.
It is not anticipated that any major improvements will be installed this fiscal year. It is anticipated that minor improvements at diverse locations will be added to the District periodically during the year.
2. Cost Estimate
City of Rialto Street Light Maintenance District No. 1
Engineer’s Report for Fiscal Year 202 2-202 3 2
The maintenance of existing street light facilities is performed by either the Southern California Edison Company, the State of California Department of Transportation or by the City through its own forces or contract personnel.
The portion of the street light system owned and operated by the Southern California Edison Company is billed to the City on a monthly flat rate per street light basis. These flat rates vary based upon the type and size of luminaries and are adjusted as allowed by the California Public Utilities Commission.
A portion of the street lighting system is owned an d maintained by the City. Electrical energy is purc hased from the Southern California Edison Company at metered l ocations. Again, as with the Edison-owned lights, t here are regular increases in the electrical energy costs; however, with the City-owned system these increases are termed "fuel cost adjustments."
The maintenance of existing street trees is perform ed by the City through its own forces or contract p ersonnel.
Costs assessed to the district include those for labor, material, and equipment.
Table 2-1
Fiscal Year 2022-2023 Cost Estimate
Budget Item Amount
Electricity $271,880
Contract Services $633,000
Personnel Expenses $31,270
Other Expenses $286,046
Other Service and Supply Expenses $4,650
County Fee $0
Transfers Out - General Fund $0
Total Costs and Expenses $1,226,845
Reserve Fund Contribution ($41,618)
General Fund Contribution ($342,766)
Estimated Net Assessment 2022-2023: $842,461
2. Cost Estimate
City of Rialto Street Light Maintenance District No. 1
Engineer’s Report for Fiscal Year 202 2-202 3 3
The following table depicts the expenditure detail for the City over the course of five (5) years, as well as the projected expenditure detail for fiscal year 2022-2023
Table 2-2
Expenditure Detail
Account # Fund Prg Object Expenses
Budget
2018/2019
Budget
2019/2020
Budget
2020/2021
Budget
2021/2022
Projected
Budget
2022/2023
490-400-4860-7105 490 4860 7105 Property Assessments - Street Lights $611,575 $611,580 $604,370 $605,960 $614, 580 490-400-4860-7401 490 4860 7401 Finance Investment Inco me Allocation $10,600 $13,900 $14,840 $13,150 $24,075 490-400-7309-7105 490 7309 7105 Property Assessments - Street Lights $230,175 $230,000 $223,535 $222,920 $223, 685 TOTAL REVENUES $852,350 $855,480 $842,745 $842,030 $862, 339 490-500-4860-2002 490 4860 2002 Electricity $642,070 $443 ,450 $513,310 $541,940 $271,880 490-500-4860-2011 490 4860 2011 Contract Services $104,4 85 $278,490 $227,680 $233,000 $233,000 490-500-4860-2140 490 4860 2140 Postage $340 $250 $260 $260 $260 490-500-4860-2145 490 4860 2145 Liability Insurance $0 $0 $0 $0 $0 490-500-4860-2000 490 4860 2000 Total Services and Supp lies $746,895 $722,190 $741,250 $775,200 $505,140 TOTAL STREET LIGHT SERVICES $746,895 $722,190 $741,250 $775,200 $505,140 490-500-4860-3001 490 4860 3001 Capital Improvements $0 $ 134,590 $0 $0 $0 490-500-4860-4001 490 4860 4001 Principal $199,165 $147, 168 $172,906 $172,906 $186,035 490-500-4860-4010 490 4860 4010 Interest $110,808 $112,113 $106,625 $106,625 $93,350 490-500-4860-5010 490 4860 5010 Transfers Out- General Fund $0 $0 $6,478 $6,661 490-500-4860-5000 490 4860 5000 Total Other $0 $0 $0 $0 490 4860 TOTAL OTHER $309,973 $393,871 $279,531 $286,009 $286,046 490-500-7309-1001 490 7309 1001 Salaries $14,619 $16,166 $16,549 $16,952 $17,381 490-500-7309-1005 490 7309 1005 Special Compensation $1, 027 $1,131 $1,157 $2,373 $2,431 490-500-7309-1010 490 7309 1010 Pastime $0 $0 $0 $0 $0
490-500-7309-1020 490 7309 1020 Overtime $5,000 $5,000 $0 $0 $0 490-500-7309-1030 490 7309 1030 Retirement $1,515 $1,988 $2,136 $2,048 $2,241 490-500-7309-1040 490 7309 1040 Worker's Compensation $2 49 $348 $360 $380 $3,730 490-500-7309-1050 490 7309 1050 Other Fringe Benefits $5 ,422 $5,452 $5,459 $5,487 $5,486 490 7309 1070 Other Post Employment Benefits $0 $0 $0 $0 $0 490-500-7309-1080 490 7309 1080 Leave - Cashouts $514 $28 0 $280 $624 $0 490-500-7309-1000 490 7309 1000 Total Personnel $28,344 $30,364 $25,941 $27,864 $31,270 490-500-7309-2002 490 7309 2002 Electricity $0 $0 $0 $0 $0 490-500-7309-2003 490 7309 2003 Gas $0 $0 $0 $0 $0
490-500-7309-2004 490 7309 2004 Water/Wastewater $0 $0 $0 $ 0 $0 490-500-7309-2010 490 7309 2010 Legal Services $0 $0 $0 $0 $0 490-500-7309-2011 490 7309 2011 Contract Services $300,0 00 $420,000 $400,000 $400,000 $400,000 490-500-7309-2021 490 7309 2021 Other Services & Suppli es $4,200 $4,200 $4,200 $0 $0 490-500-7309-2030 490 7309 2030 Maintenance- Office and Machinery $0 $0 $0 $0 $0 490-500-7309-2040 490 7309 2040 Vandalism $0 $0 $0 $0 $0 490-500-7309-2105 490 7309 2105 MIS $0 $0 $0 $0 $0
490-500-7309-2110 490 7309 2110 Fleet Maint./Replacemen t Charges $1,100 $1,430 $1,500 $1,500 $1,500 490-500-7309-2122 490 7309 2122 Simonson Center Departm ent Fees $60 $60 $60 $60 $60 490-500-7309-2125 490 7309 2125 Building Maintenance $1, 440 $1,560 $2,240 $2,200 $0 490-500-7309-2140 490 7309 2140 $0 $0 $0 $0 $0
490-500-7309-2145 490 7309 2145 Liability Insurance $40 $ 60 $70 $70 $2,830 County Fee ($.30 Per Parcel) $6,405 $6,397 $0 $0 $0
490-500-7309-2000 490 7309 2000 Total Services & Supplies $313,245 $433,706 $408,070 $4 03,830 $404,390 490-500-7309-5010 490 7309 5010 Transfers Out- General Fund $0 $0 $0 $0 $0 490-500-7309-5000 490 7309 5000 Total Other $0 $0 $0 $0 $0 490-500-7309- 490 7309 TOTAL TREE MAINTENANCE $341,589 $464,071 $434,011 $431 ,694 $435,659 TOTAL STREET LIGHTING FUND $1,056,868 $1,116,061 $1,02 0,781 $1,061,209 $791,186 TOTAL TREE MAINTENANCE & STREET LIGHT $1,398,457 $1,5 80,132 $1,454,792 $1,492,903 $1,226,845 Reserve Fund Contribution ($556,707) ($740,695) ($619,089) ($256,312) ($41,618) General Fund Contribution ($399,088) ($342,766)
TOTAL REVENUE (NET ASSESSMENTS) $841,750 $839,437 $835 ,703 $837,502 $842,461
3. Method of Apportionment
City of Rialto Street Light Maintenance District No. 1
Engineer’s Report for Fiscal Year 2022-2023 4
Proposition 218 Compliance
On November 5, 1996, California voters approved Proposition 218, entitled “Right to Vote on Taxes Act, ” which added Article XIII D to the California Constitution. While its title refers only to taxes, Proposition 218 establishes new procedural requirements for the formation and administration of assessment districts. Proposition 218 also requires that with certain specified exception, which are described below, all existing assessment districts must be ratified by the property owners within the District using the new procedures.
Some of these exceptions include:
1. Any assessments imposed exclusively to finance the capital cost or maintenance and operation expenses for streets.
2. Any assessments levied pursuant to a petition signed by the persons owning all of the parcels subject to the assessment at the time the assessment was initially imposed.
However, even if assessments are initially exempt from Proposition 218, if the assessments are increased in the future, the City will need to comply with the provisions of Proposition 218 for that portion of the increased assessment formula (e.g., CPI increase).
Proposition 218 does not define the term “streets,” however, based on the opinions of the public agency officials, attorneys, assessment engineers and Senate Bill 919, it has been determined that streets include all public improvements located within the street rights-of-way. This would include median and parkway landscaping, traffic signals, safety lighting, and street lighting.
Proposition 218 defines “assessment” as “any levy or charge upon real property by an agency for a special benefit conferred upon the real property.” Cal. Const., art. XIII D, §2(b). A special assessment, sometimes called a “benefit assessment,” is a charge generally levied upon parcels of real property to pay for benefits the parcels receive from local improvements. Special assessments are levied according to statutory authority granted by the Legislature or, in some instances, local charters. Distinguishing among taxes, fees , and assessments can be difficult and often depends on the context in which the distinction is made. For example, taxes, assessments, and property-related fees all may be imposed on property. The key feature that distinguishes an assessment from a tax, fee, or charge is the existence of a special benefit to real property. Without identifying a special benefit, there can be no assessment.
Distinguishing General and Special Benefit
Proposition 218 added a set of procedures and requirements , which a local government must follow to levy an assessment. In addition to notice, hearing, and assessment ballot proceedings, Proposition 218 provides that “only special benefits are assessable” and requires a local government to “separate the general benefits from the special benefits conferred on a parcel.”
By its nature , most public improvements financed through an assessment d istrict contain an element of public benefit. The test is: does there exist, with relation to the improvement, a special benefit to the property assessed? The law requires that portion of the cost of the improvement which benefits the public generally to be separated from that portion of the cost of the improvement which specially benefits assessed properties. Proposition 218 provides the following definition of “special benefit”:
“Special benefit” means a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large. General enhancement of property value does not constitute “special benefit”.
Below is the description of the Method of Apportionment and Special Benefit and the Assessment Roll sum mary for the Assessment District.
3. Method of Apportionment
City of Rialto Street Light Maintenance District No. 1
Engineer’s Report for Fiscal Year 2022-2023 5
Improvements Authorized by the1972Act
As applicable or may be applicable to this proposed District, the 1972 Act defines improvements to mean one or any combination of the following:
• The installation or planting of landscaping.
• The installation or construction of statuary, fountains, and other ornamental structures and facilities. • The installation or construction of public lighting facilities. • The installation or construction of any facilities which are appurtenant to any of the foregoing or which are necessary or convenient for the maintenance or servicing thereof, including, but not limited to, grading, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities. • The maintenance or servicing, or both, of any of the foregoing. • The acquisition of any existing improvement otherwise authorized pursuant to this section.
Incidental expenses associated with the improvements including, but not limited to:
• The cost of preparation of the report, including plans, specifications, estimates, diagram, and assessment; • The costs of printing, advertising, and the publishing, posting, and mailing of notices; • Compensation payable to the County for collection of assessments; • Compensation of any engineer or attorney employed to render services; • Any other expenses incidental to the construction, installation , or maintenance and servicing of the improvements;
• Any expenses incidental to the issuance of bonds or notes pursuant to Section 22662.5. • Costs associated with any elections held for the approval of a new or increased assessment.
The 1972 Act defines "Maintain" or "maintenance" to mean furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including:
• Repair, removal, or replacement of all or any part of any improvement. • Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury. • The removal of trimmings, rubbish, debris, and other solid waste.
The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti.
Method of Apportionment
The City Council, in determining the necessity of forming the District, considered the increasing cost of providing services to the residents, businesses and properties located within the City. The benefit provided by street lighting consists of security for residents, building owners, tenants, storage areas, pedestrians, drivers, and many other safety aspects within the community. The citizens of the City benefit from r egular park landscape maintenance that preserves the City's economic and humanistic values.
In accordance with Section 22595 of the 1972 Act all railroad, gas, water or electric utility or electric line right-of- way included within the District that receives benefit will be assessed for said benefit.
FORMULA FOR ASSESSMENT
Assessments proposed for individual lots within the District will be assessed for benefit received as determined previously by the City Council.
3. Method of Apportionment
City of Rialto Street Light Maintenance District No. 1
Engineer’s Report for Fiscal Year 2022-2023 6
For the purpose of assessment, the following four assessment categories have been established:
1. Residential Developed
2. Residential Vacant
3. Non-Residential Developed
4. Non-Residential Vacant
Residential properties include single-family units, multiple family units (condominiums and apartment complexes) and mobile home parks. The Non -Residential categories include primarily commercial, professional, office and industrial uses.
Residential Rates: There are two categories of cost, which will be assigned to each property. The first category is the Land Benefit Factor. The costs associated with the residential share of street lighting costs have been divided among all of the residential properties. Properties with less than one acre are assessed one unit. Larger properties are charged at the rate of four units per acre (the average number of lot s that an acre can be subdivided into).
This charge is levied against every residential lot within the City regardless of whether it has been developed or not. This portion of the assessment for Fiscal Year 2022-2023 is $8.18 per acre. The minimum assessme nt per residential parcel is $2.05. The second category is the Development Factor. This category is applied to only those residential lots, which are developed. A single-family dwelling unit receives one unit of benefit. Vacant residential properties will not pay this cost since they do not derive any direct measurable benefit from the District. This portion of the assessment for Fiscal Year 2022-2023 is $24.03 per unit.
Non-Residential Rates: Non-Residential properties are assessed similarly to residential properties. There is a Land Benefit Factor of the assessment, which is charged on a per acre basis. The Land Benefit Factor for Fiscal Year 2022-2023 is $8.18 per acre. The minimum assessment is $4.09.
The second category, the Development Factor, is calcu lated by dividing the acreage of all developed non - residential properties into the costs associated with those properties. The Development Factor for Fiscal Year 2022-2023 is $52.09 per acre.
Cottage Commercial: The Cottage Commercial zone, located on the east and west sides of Olive Avenue between Rialto Avenue and First Street, consists of properties which are within a commercial area, but which are occupied as residences. Properties occupied as residences are assessed at the residential rate using the residential formula.
Properties occupied as businesses are assessed at the non-residential rate using the non-residential formula with the minimum rate being equal to one-half of an acre.
To summarize, there are two classifications of parcel assessments: Res idential and Non -Residential. Each classification is broken down into two categories: Land Benefit Factor and Development Benefit Factor. The Land Benefit Factor reflects the benefit every property receives from the services provided under the District. Every parcel within the District is assessed a Land Benefit Factor. The Development Benefit Factor is assessed against developed properties exclusively. A vacant property will receive "0" assessment for the Development Benefit Factor portion.
Therefore, the assessment for the District is derived by the following formula:
Land Benefit Factor + Development Factor = FY 2022-2023 Assessment
Examples of various types of property as applied to the formula:
A typical single-family residence located on a tract -sized lot 1/4 acre would therefore receive an assessment of $26.08:
(0.25*$8.18) + $24.03 = $26.08
3. Method of Apportionment
City of Rialto Street Light Maintenance District No. 1
Engineer’s Report for Fiscal Year 2022-2023 7
A vacant residential property one acre in size would receive an assessment of $8.18:
(1*$8.18) + $0 = $8.18
No vacant residential property will receive an assessment of less than one quarter of the acreage charge ($2.05).
A commercial property on three acres would receive an assessment of $180.81:
(3*$8.18) + (3*$52.09) = $180.81
A vacant commercial property on 20 acres would receive an assessment of $163.60:
(20*$8.18) + (20*$0) = $163.60
No vacant non-residential property will receive an assessment of less than one-half the acreage charge ($4.09).
4. Assessment
City of Rialto Street Light Maintenance District No. 1
Engineer’s Report for Fiscal Year 2022-2023 8
The listing of parcels assessed within this District, along with the proposed assessment amounts, will be submitted to the City’s Public Works Department, under a separate cover, and by reference is made part of this Report.
APPENDIX A
Assessment Roll (Under Separate Cover)
APPENDIX B
Boundary Map
Source: San Bernardino Co. GIS, 2020
LEGEND
District Boundary
C:\Users\boliver\Desktop\GIS\Rialto\Arc GIS maps\Rialto\SLMD_1\SLMD1_boundary.mxd; Map created 12 May 2020 I
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STREET LIGHT MAINTENANCE DISTRICT NO. 1
CITY OF RIALTO