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CC SR 20170815 01 - Public Hearing FY 17-18 Citywide LLMDRANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 08/15/2017 AGENDA REPORT AGENDA HEADING: Public Hearing AGENDA DESCRIPTION: Consideration and possible action to approve setting at zero the annual levy and assessments of the existing Citywide Landscaping and Lighting Maintenance District for FY 17-18. RECOMMENDED COUNCIL ACTION: (1) Conduct a public hearing on setting at zero the annual levy and assessments of the existing Citywide Landscaping and Lighting Maintenance District for FY17-18. (2) Adopt Resolution No. 2017 , A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES MAKING CERTAIN FINDINGS AND CONFIRMING A DIAGRAM AND ASSESSMENTS FOR THE FISCAL YEAR 2017-18 IN CONNECTION WITH THE CITYWIDE LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972, PART 2 OF DIVISION 15 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE FISCAL IMPACT: Funding to prepare the Engineer's Report ($7,500) was included in the FY16-17 budget. A zero assessment will require that the expenditures of the District be paid for through other sources. The beginning balance of $31,831, interest earnings of $399, and $656,757 of Measure M funds will be used to cover the District's expenditures of $688,987 for FY17-18. In subsequent fiscal years, the entire expenditure budget for the District will be paid for by Measure M funds (countywide 1/2 cent sales tax increase approved by voters on November 8, 2016). Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: Mike Gibson, Senior Administrative Analyst REVIEWED BY: Terry Rodrigue, PE, Interim Director of Public Works ! APPROVED BY: Doug Willmore, City Manager,{'T ATTACHED SUPPORTING DOCUMENTS: A. Notice of Public Hearing (page A-1) B. Resolution No. 2017 (page B-1) C. Amended Engineer's Report — Citywide Landscaping and Lighting Maintenance District (page C-1) 1 BACKGROUND AND DISCUSSION: Annual Levy Procedures On August 6, 1992, the City Council formed an assessment district designated as the "Citywide Landscaping and Lighting Maintenance District (the "Citywide District"), pursuant to the Landscaping and Lighting Act of 1972 (the 1972 Act"). The purpose of forming the Citywide District was to provide additional funding for the ongoing operation, maintenance, and servicing of median landscaping, street trees, street lighting, and traffic signals within the boundaries of the City of Rancho Palos Verdes. The Citywide District is funded through assessments on properties throughout the City. Each parcel is assessed an amount, which is based on the relative benefit the parcel receives from the District's operations. The City ensures a fair and equitable sharing of the costs by conducting an annual review of District operations, wherein the current year's expenses are reviewed, the ensuing year's expenses are budgeted, and assessments are determined based on this review. The 1972 Act requires that proceedings be undertaken on an annual basis for any year during which assessments will be levied and collected. The 1972 Act also requires the preparation of an Engineer's Report in connection with the annual levy of assessments. The City Council may approve the Engineer's Report as filed, or it may modify the Report and approve it as modified. Harris & Associates, Inc. was commissioned by the City to act as Citywide District Engineer and prepare the Engineer's Report On May 16, 2017, Staff presented a report to City Council that recommended initiation of proceedings, approval of the Engineer's Report, and adoption of a Resolution of Intention, which would have set a public hearing on June 6, 2017, for the proposed levy of assessments for the ensuing fiscal year. However, at that time, the City Council decided against initiation of proceedings and directed Staff instead to set at zero the levy of assessments for the ensuing fiscal year (FY17-18). On August 1, 2017, the City Council, as required by the 1972 Act, adopted a resolution initiating proceedings for the levy and collection of assessments within the existing Citywide Landscaping and Lighting Maintenance District (LLMD) for FY17-18 and ordering preparation of an Amended Engineer's Report. At that time, the City Council also approved the Amended Engineer's Report (Attachment C), which set at zero the levy and assessments of the existing Citywide LLMD for FY17-18. On August 1, 2017, the City Council also adopted a resolution declaring its intention to set the levy at zero with the existing LLMD and set a public hearing date of August 15, 2017, to hear any objections to the City Council's proposed actions. An ad noticing this August 15th public hearing was placed in the Palos Verdes Peninsula News on August 3, 2017 (Attachment A). In addition, the notice of the public hearing was posted at City 2 Hall, Hesse Park Community Center, and Ladera Linda Community Center on August 3, 2017. The Citywide District is currently exempt from the requirements of Proposition 218 because the assessments predate, and have not been increased since, the effective date of Proposition 218 (July 1, 1997). As long as the District remains in place and is not dissolved, any future City Council could elect to reinstate the levy of assessments up to the maximum amount shown on page D-20 of the Engineer's Report. The process would be the same as in past years (i.e., resolution ordering the Engineer's Report, resolution approving the Engineer's Report, setting a public hearing date, and resolution authorizing the levy of assessments). Estimate of Cost for District The Citywide District Engineer, Harris & Associates, Inc., reviewed the proposed District budget for FY17-18 and prepared the Amended Engineer's Report (Attachment C), setting at zero the levy and assessments of the existing Citywide LLMD for FY17-18. The "Estimate of Cost" (pages D-10 and D-11) provides a summary of the FY17-18 Citywide District's estimated revenues and expenditures. A zero assessment will require that the District's annual expenditures of $688,987 be paid for through other sources. The beginning Fund balance of $31,831, interest earnings of $399, and $656,757 of Measure M funds will be used to cover the District's expenditures for FY17-18. In subsequent fiscal years, the entire expenditure budget for the District will be paid for by Measure M funds (countywide 1/2 -cent sales tax increase approved by voters on November 8, 2016). ALTERNATIVES: In addition to the Staff recommendation, the following alternative is available for the City Council's consideration: Direct Staff to modify the Amended Engineer's Report and bring this item back to City Council for approval at a future meeting. 9 CITY OF IL RANCHO PALOS VERDES STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS AFFIDAVIT OF POSTING CITY OF RANCHO PALOS VERDES) The undersigned, being first duly sworn, deposes, and says: That at all times herein mentioned, she was and now is the appointed Acting City Clerk of the City of Rancho Palos Verdes; That on August 3, 2017 she caused to be posted the following document entitled: City of Rancho Palos Verdes, public notice for public hearing to be held on August 15, 2017 regarding consideration and possible action to set the levy at zero within the existing Citywide Landscaping and Lighting Maintenance District (LLMD) for FY 17-18, a copy of which is attached hereto, at the following locations: City of Rancho Palos Verdes City Hall/Civic Center 30940 Hawthorne Blvd. Rancho Palos Verdes, CA 90275 Hesse Park Community Center 29301 Hawthorne Blvd. Rancho Palos Verdes, CA 90275 Ladera Linda Community Center 32201 Forrestal Drive Rancho Palos Verdes, CA 90275 I certify under penalty of perjury that the foregoing is a true and correct affidavit of posting. A-1 NOTICE OF PUBLIC HEARING CITYWIDE LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT FOR FISCAL YEAR 2017-18 NOTICE IS HEREBY GIVEN that a public hearing will be conducted for the existing Rancho Palos Verdes Citywide Landscaping and Lighting Maintenance District on Tuesday, August 15, 2017, at 7:00 PM, in the John C. McTaggart Memorial Hall and City Council Chambers, at Fred Hesse Park Community Center, 29301 Hawthorne Boulevard, Rancho Palos Verdes, California 90275. On August 1, 2017, the City Council adopted Resolution No. 2017-45 declaring its intention to set the levy at zero within the existing Citywide Landscaping and Lighting Maintenance District for Fiscal Year 2017-18 pursuant to the Landscaping and Lighting Maintenance Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code, and appointing a time and place for hearing objections thereto. A copy of Resolution No. 2017-45 follows below: RESOLUTION NO. 2017-45 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DECLARING ITS INTENTION TO SET THE LEVY AT ZERO WITHIN THE EXISTING CITYWIDE LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT FOR FISCAL YEAR 2017-18 PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972, PART 2 OF DIVISION 15 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE, AND APPOINTING A TIME AND PLACE FOR HEARING OBJECTIONS THERETO. WHEREAS, on August 6, 1992, the City Council of the City of Rancho Palos Verdes formed an assessment district designated as the "Citywide Landscaping and Lighting Maintenance District" (the "District"), pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code (commencing with Section 22500) (the "Act"); and WHEREAS, assessments levied within the District provided revenue for the purpose of financing the installation, construction, and maintenance of certain public projects eligible under the Act, including without limitation the operation, maintenance, and servicing of public street and sidewalk landscaping, irrigation systems, and other appurtenant facilities; and WHEREAS, the assessments levied by the District have not been increased on any date on or after July 1, 1997; and WHEREAS, on May 16, 2017, pursuant to the provisions of the Act, the City Council directed staff to take action to set at zero the levy and collection of assessments against the assessable lots and parcels of land in the District for Fiscal Year 2017-18; and A-2 WHEREAS, the Engineer, Harris & Associates, Inc., has prepared and filed a written report in accordance with Article 4 (commencing with Section 22565) of Chapter 1 of the Act; and WHEREAS, in accordance with Article 4 of Chapter 1 of the Act, the Engineer prepared and filed such report (the "Amended Engineer's Report") with the City Clerk, and the City Clerk has presented the Amended Engineer's Report to the City Council; and WHEREAS, on August 1, 2017, the City Council adopted Resolution No. 2017-44 approving the Amended Engineer's Report, as filed, pursuant to Section 22623 of the Act; and WHEREAS, in accordance with Section 22624 of the Act, the City Council now desires to declare its intention to set the levy at zero for assessments within the District for Fiscal Year 2017-18, and to call a public hearing relating thereto; and THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS: Section 1. The above recitals are true and correct, and are hereby incorporated herein by this reference. Section 2. The City Council hereby (1) finds that the public interest and convenience requires and (2) declares its intention to set the levy at zero against the assessable lots and parcels of property within the existing assessment district designated "Citywide Landscaping and Lighting Maintenance District" (the "District") pursuant to the provisions of the Act, for the fiscal year commencing July 1, 2017 and ending June 30, 2018, which previously paid for the costs and expenses of the improvements described below in Section 3 of this Resolution. Section 3. The boundaries of the District are coterminous with the boundaries of the City. Section 4. The proposed improvements are briefly described as follows: The operation, maintenance, and servicing of public street and sidewalk landscaping within the District, including the operation, maintenance, and servicing of public lighting facilities, including safety lighting and traffic signals, landscaping, including trees, shrubs, grass, and other ornamental vegetation, and appurtenant facilities, including irrigation systems, located along public roadways, streets and rights-of-way within the boundaries of the City. Maintenance means the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of the landscaping, public lighting facilities, and appurtenant facilities, including repair, removal, or replacement of all or part of any of the landscaping, public lighting facilities, or appurtenant facilities; providing for the life, growth, health, and beauty of the landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, and treating for disease or injury; the removal of trimmings, rubbish, debris and other solid waste; and the cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti. Servicing means A-3 the furnishing of water for irrigation of the landscaping and the maintenance of any of the public lighting facilities or appurtenant facilities and the furnishing of electric current or energy, gas or other illuminating agent for the public lighting facilities, or for the lighting or operation of landscaping or appurtenant facilities. Section 5. The assessments which would otherwise be levied and collected against the assessable lots and parcels of property within the District for Fiscal Year 2017-18 are not proposed to increase from the assessments levied and collected for Fiscal Year 2016-17, but rather to be set at zero, per City Council's action on August 1, 2017. Section 6. By previous resolution, the City Council directed the Engineer, Harris & Associates, Inc., to prepare and to file an Engineer's Report pursuant to the provisions of the Act. The Engineer has prepared and filed a written report with the City Clerk that is titled "Amended Engineer's Report for Citywide Landscape and Lighting Maintenance District, Fiscal Year 2017-18" and by previous resolution the City Council approved the Amended Engineer's Report as filed. Reference is made to the Amended Engineer's Report on file in the Office of the City Clerk and open to public inspection for a full and detailed description of the improvements, the boundaries of the District and the zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. The Office of the City Clerk is located at 30940 Hawthorne Boulevard, Rancho Palos Verdes, California 90275. Section 7. The City Council hereby declares its intent to apply $457,700 of the 1911 Act Lighting Maintenance District Fund balance to the costs and expenses of operating, maintaining, and servicing traffic signals, safety lighting, and street lighting. The City Council hereby finds and determines that the foregoing application of the Fund Balance will be just and equitable and in the public interest. Section 8. Public property owned by any public agency and in use in the performance of a public function that is included within the boundaries of the District shall not be subject to assessment to be made under these proceedings to pay for any costs and expenses of the improvements. Section 9. Notice is hereby given that the City Council designates August 15, 2017, at 7:00 p.m., in the John C. McTaggart Memorial Hall and City Council Chambers, at the Fred Hesse Park Community Center, 29301 Hawthorne Boulevard, Rancho Palos Verdes, California 92075, as the date, time, and place for the hearing of protests or objections to setting the levy at zero within the District. All interested persons shall be afforded the opportunity to hear and be heard. The City Council shall consider all oral statements and all written protests or communications made or filed by any interested person. Prior to the conclusion of the hearing, any interested person may file a written protest with the City Clerk or, having previously filed a protest, may file a written withdrawal of that protest. A written protest shall state all grounds of objection. A protest by a property owner shall contain a description sufficient to identify the property owned by the signer. Written protests may be delivered in person to the City Clerk or may be mailed to the City Clerk at City Hall, 30940 Hawthorne Boulevard, Rancho Palos Verdes, California 90275. Any written protest that is mailed must be received at City Hall at or prior to 4:30 p.m. on August 15, 2017. Section 10. The City Clerk shall give notice of the aforesaid date, time, and place of the hearing in accordance with law. PASSED, APPROVED, AND ADOPTED this 1 st day of August, 2017. /s/ Brian Campbell Mayor ATTEST: /s/ Emily Colborn City Clerk Dated: August 2, 2017 Published in the Palos Verdes Peninsula News on Thursday, August 3, 2017. M RESOLUTION NO. 2017- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES MAKING CERTAIN FINDINGS AND CONFIRMING A DIAGRAM AND ASSESSMENTS FOR THE FISCAL YEAR 2017-18 IN CONNECTION WITH THE CITYWIDE LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972, PART 2 OF DIVISION 15 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE WHEREAS, on August 6, 1992, the City Council of the City of Rancho Palos Verdes formed an assessment district designated as the "Citywide Landscaping and Lighting Maintenance District" (the "District"), pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code (commencing with Section 22500) (the "Act"); and WHEREAS, assessments levied within the District provided revenue for the purpose of financing the installation, construction, and maintenance of certain public projects eligible under the Act, including without limitation the operation, maintenance, and servicing of public streets and sidewalks, landscaping, irrigation systems, and other appurtenant facilities; and WHEREAS, the assessments levied by the District have not been increased on any date on or after July 1, 1997; and WHEREAS, on August 1, 2017, pursuant to the provisions of the Act, the City Council initiated proceedings by Resolution No. 2017-43 for the levy and collection of assessments against the assessable lots and parcels of the land in the District for Fiscal Year 2017-18 and directed the Engineer, Harris & Associates, Inc., to prepare and file a written report in accordance with Article 4 (commencing with Section 22565) of Chapter 1 of the Act. WHEREAS, in accordance with Article 4 of Chapter 1 of the Act, the Engineer prepared and filed such report (the "Amended Engineer's Report") with the City Clerk, and the City Clerk has presented the Amended Engineer's Report to the City Council; and WHEREAS, on August 1, 2017 the City Council adopted Resolution No. 2017-44 approving the Amended Engineer's Report, as filed, pursuant to Section 22623 of the Act; and. WHEREAS, in accordance with Section 22624 of the Act, the City Council declares its intention to set the levy at zero within the District for Fiscal Year 2017-18, and called a public hearing related thereto for August 15, 2017; and WHEREAS, notice was given pursuant to the Act, as required by law, and WHEREAS, on August 15, 2017, a full and fair noticed public hearing was duly held, and all interested persons were afforded the opportunity to hear and he heard regarding protests and objections to setting the levy at zero against lots or parcels of property within the District; and WHEREAS, the City Council now desires to confirm the diagram and assessments, as filed, and take certain other actions relating to the levy of assessments by the District; THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS: Section 1. The above recitals are true and correct, and, by this reference, are incorporated herein. Section 2. Pursuant to prior resolutions, the City Council of the City of Rancho Palos Verdes initiated proceedings and declared its intention to set the levy at zero against the assessable lots and parcels of property within the District pursuant to the provisions of the Act for the Fiscal Year commencing July 1, 2017 and ending June 30, 2018, and ordered the Engineer to prepare the Amended Engineer's Report in accordance with Article 4 of Chapter 1 of the Act (the "Amended Engineer's Report"). The City Council, by prior resolution, approved such Engineer's Report. Section 3. The City Council hereby applies $457,700 of the 1911 Act Lighting Maintenance District fund balance to the costs and expenses of operating, maintaining, and servicing traffic signals, safety lighting, and street lighting. The City Council hereby finds and determines that the foregoing application of the fund balance will be just and equitable and in the public interest. Section 4. Following notice duly given in accordance with the law, the City Council has held a full and fair public hearing regarding the Amended Engineer's Report and the levy of the assessments within the District for Fiscal Year 2017-18 to pay for the costs and expenses of the improvements described in the Amended Engineer's Report pursuant to the terms and provisions of the Act. All interested persons were afforded the opportunity to hear and be heard regarding protests and objections to setting the levy at zero against lots or parcels of property within the District. The City Council considered all oral and written statements, protests, and communications made or filed by interested persons. Section 5. The City Council declares that the diagram and assessments in the Engineer's Report are hereby confirmed as filed. Section 6. The assessment is in compliance with the provisions of the Act and the City Council has complied with all laws pertaining to the levy of annual assessments pursuant to the Act. Section 7. The Los Angeles County Auditor -Controller shall not place any assessments on the County Assessment Roll opposite each lot or parcel of land within the District as part of the FY 2017-18 Assessment Roll. Section 8. The adoption of this Resolution constitutes the levy being set at zero against the lots and parcels of land in the District for the Fiscal Year commencing July 1, 2017 and ending June 30, 2018. PASSED, APPROVED AND ADOPTED this 15th day of August, 2017. Mayor ATTEST: City Clerk State of California ) County of Los Angeles )ss City of Rancho Palos Verdes ) I, EMILY COLBORN, City Clerk of the City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2017- was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on August 15, 2017. City Clerk City of Rancho Palos Verdes —V— AMENDED AMENDED ENGINEER'S REPORT for Citywide Landscape and Lighting Maintenance District Fiscal Year 2017-18 Presented to the City of Rancho Palos Verdes Los Angeles County, California May 31, 2017 = I Harris & Associates Rancho Palos Verdes May 31, 2017 Citywide Landscaping and Lighting Maintenance District Page i ENGINEER'S REPORT CITY OF RANCHO PALOS VERDES CITYWIDE LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT The undersigned respectfully submits the enclosed report as directed by the City Council. DATED: May 31, 2017 BY: K. Den is KIi elhofer R.C.E. No. 50255 I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll and Assessment Diagram thereto attached, was filed with me on the day of 2017. Emily Colborn, City Clerk, City of Rancho Palos Verdes Los Angeles County, California 0 I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll and Assessment Diagram thereto attached, was approved and confirmed by the City Council of the City of Rancho Palos Verdes, California, on the day of 2017. Emily Colborn, City Clerk, City of Rancho Palos Verdes Los Angeles County, California 0 BHarris & Associates C-2 Rancho Palos Verdes May 31, 2017 Citywide Landscaping and Lighting Maintenance District Page ii CITY OF RANCHO PALOS VERDES CITYWIDE LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT ENGINEER'S REPORT TABLE OF CONTENTS Certificates................................................................................................... Introduction.................................................................................................. Report.......................................................................................................... Part A - Plans and Specifications ............................................ Part B - Estimate of Cost ......................................................... Part C - Assessment Roll ........................................................ Part D - Method of Apportionment of Assessment .................. Part E - Property Owner List ................................................... Part F - Assessment District Diagram ..................................... Appendix — 3 Year Projection IW ..................10 ..................18 ..................18 Harris & Associates C-3 Rancho Palos Verdes May 31, 2017 Citywide Landscaping and Lighting Maintenance District Page 1 INTRODUCTION To ensure a flow of funds for the on-going operation, maintenance and servicing of median landscaping, street trees, street lighting and traffic signals which provide a special benefit to parcels within the boundaries of the City of Rancho Palos Verdes, the City Council formed the Citywide Landscaping and Lighting Maintenance District on August 6, 1992. The Citywide Landscaping and Lighting Maintenance District ensures a fair and equitable levying of the necessary costs of operating, servicing and maintaining of the respective facilities, which in turn directly enhances the value of each and every parcel in the City. On January 17, 1995, the City Council directed Staff to analyze the feasibility of transferring jurisdiction for the entire citywide street lighting system from the County to the City. Prior to the incorporation of the City of Rancho Palos Verdes, the County of Los Angeles established County Lighting Maintenance Districts to install, operate and maintain street lights in areas throughout the County. Funds for street lighting came from a combination of ad -valorem tax revenue and, in more recent years, special assessments on properties benefiting from the street lighting The purpose of the feasibility study was to determine whether or not it was feasible for the City to take over jurisdiction of the County -owned street lighting facilities within the boundaries of the City and to review the fiscal impact which the transfer would have on the City. On February 7, 1995, the City Council received the feasibility report, authorized the transfer of the street lighting district from the County of Los Angeles to the City, and authorized the establishment of a special benefit zone along with the benefit methodology for possible future street lighting assessments in the Citywide Landscaping and Lighting Maintenance District. On April 6, 1995, the County of Los Angeles Board of Supervisors adopted a joint resolution that approved the transfer of the Street Lighting District from the County to the City. The transfer was effective July 1, 1995. On June 21, 2005, the City Council modified the FY 2005-06 Engineer's Report to provide for a temporary "credit" to property owners whereby the Traffic Signal and Safety Lighting operation and maintenance costs would be paid out of the 1911 Act Lighting Maintenance District fund balance. This temporary "credit" may be discontinued in any subsequent year at which time these costs will revert to being funded by the annual assessments and the assessment rates will be set at the previously approved maximum rates. At the May 16, 2017 City Council meeting, the City Council directed that the Engineer's Report be modified to show the levy of $0.00 in assessments for Fiscal Year 2017-18. This report was modified to reflect the City Council's direction and the budget shown on page 7 of the report was modified to reflect the levy of a $0.00 assessment for Fiscal Year 2018-18. The City Council may consider the levy of an assessment in future years not to exceed the maximum assessment rates Harris & Associates C-4 Rancho Palos Verdes May 31, 2017 Citywide Landscaping and Lighting Maintenance District Page 2 shown in the table on page 17 of this report. IMPACT OF PROPOSITION 218 On November 5, 1996, the voters of the State of California adopted Proposition 218 creating Article XIII D of the California State Constitution which created requirements for the creation of new assessments or to increase existing assessments. Proposition 218 also established exemptions to its provisions for assessment districts created prior to its passage. The Citywide Landscaping and Lighting Maintenance District is currently deemed exempt from the requirements of Proposition 218. However, should assessments need to be increased in the future the District will have to comply with the requirements of Proposition 218. ANNUAL PROCEEDINGS The annual proceedings for the Citywide Landscaping and Lighting Maintenance District are conducted under the Landscaping and Lighting Act of 1972, Part 2 of Division 15, Sections 22500 through 22679, of the Streets and Highways Code of the State of California (the "Act"). This report, as signed and presented to the Council for approval, has been prepared according to the methodology and rates approved by the City Council in 1992. The City Council annually reviews the current and projected year's costs for the operation, maintenance, and servicing of the District facilities and sets the assessment for the ensuing fiscal year, which runs between July 1 and June 30. In setting the annual assessment, the City Council will consider any proposed new improvements or any changes in existing improvements, and any fund balances or shortages, and adjust the assessment accordingly. Payment of the assessment for each parcel will be made in the same manner and at the same time as payments are made for property taxes for each property. This report contains the necessary data required to conduct the proceedings and is submitted to the City Clerk for filing in the office of the City Clerk where it shall remain open for public inspection. Harris & Associates C-5 Rancho Palos Verdes May 31, 2017 Citywide Landscaping and Lighting Maintenance District Page 3 FISCAL YEAR 2017-18 CITY OF RANCHO PALOS VERDES ENGINEER'S REPORT PREPARED PURSUANT TO THE PROVISIONS OF THE LANDSCAPING AND LIGHTING ACT OF 1972 SECTION 22500 THROUGH 22679 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE Pursuant to Part 2 of Division 15 of the Streets and Highways Code of the State of California, and in accordance with the Resolution of Initiation adopted by the Council of the City of Rancho Palos Verdes, State of California, in connection with the proceedings for: CITY OF RANCHO PALOS VERDES CITYWIDE LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT herein after referred to as the "Assessment District", I, K. Dennis Klingelhofer, P.E., authorized representative of Harris & Associates, the duly appointed ENGINEER OF WORK, submit herewith the "Report" consisting of six (6) parts as follows: PART A Plans and specifications for the improvements showing and describing the general nature, location and extent of the improvements. PART B An estimate of the cost of the proposed improvements for FY 2017-18, including incidental costs and expenses in connection therewith. PART C An assessment of the estimated cost of the improvements on each benefited lot or parcel of land within the Assessment District. PART D The method of apportionment of assessments, indicating the proposed assessment of the total amount of the costs and expenses of the improvements upon the several lots and parcels of land within the Assessment District, in proportion to the estimated benefits to be received by such lots and parcels. Harris & Associates C-6 Rancho Palos Verdes May 31, 2017 Citywide Landscaping and Lighting Maintenance District Page 4 PART E A list of the names and addresses of the owners of real property within the Assessment District, as shown on the last equalized roll of the Assessor of the County of Los Angeles. PART F The Diagram of the Assessment District Boundaries showing the exterior boundaries of the Assessment District, the boundaries of any zones within the Assessment District and the lines and dimensions of each lot or parcel of land within the Assessment District. Harris & Associates C-7 Rancho Palos Verdes May 31, 2017 Citywide Landscaping and Lighting Maintenance District Page 5 PART A PLANS AND SPECIFICATIONS The facilities which have been constructed within the City of Rancho Palos Verdes, and those which may be subsequently constructed, will be operated, serviced and maintained are generally described as follows: DESCRIPTION OF IMPROVEMENTS FOR THE CITY OF RANCHO PALOS VERDES CITYWIDE LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT Fiscal Year 2017-18 The proposed improvements for FY 2017-18 may be generally described as the continued maintenance of eligible improvements within the District, including the operation, servicing and maintenance of landscaping, lighting and appurtenant facilities that are located in and along such streets and sidewalks, including but not limited to, personnel, utilities (such as water and electrical energy), materials, contracting services, and other items necessary for the satisfactory operation of these facilities described as follows: Landscaping and Appurtenant Facilities Landscaping, planting, shrubbery, trees, irrigation systems, hardscapes, fixtures, sidewalks and appurtenant facilities, in public street and sidewalk rights-of-way, including parkways, medians and dedicated easements within the boundary of said Assessment District. Lighting and Appurtenant Facilities Poles, fixtures, bulbs, conduits, equipment including guys, anchors, posts and pedestals, metering devices and appurtenant facilities as required to provide street lighting, traffic signals and safety lighting in public street and sidewalk rights-of-way and easements within the boundaries of said Assessment District. Maintenance means the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of the landscaping, public lighting facilities and appurtenant facilities, including repair, removal or replacement of all or part of any of the landscaping, public lighting facilities or appurtenant facilities; providing for the life, growth, health and beauty of the landscaping, including cultivation, irrigation, trimming, spraying, fertilizing and treating for disease or injury; the removal of trimmings, rubbish, debris and other solid waste; and the cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti. Harris & Associates ffljiue Rancho Palos Verdes May 31, 2017 Citywide Landscaping and Lighting Maintenance District Page 6 Servicing means the furnishing of water for the irrigation.of the landscaping and the maintenance of any of the public lighting facilities or appurtenant facilities and the furnishing of electric current or energy, gas or other illuminating agent for the public lighting facilities, or for the lighting or operation of the landscaping or appurtenant facilities. The plans and specifications for the improvements, showing and describing the general nature, location, and the extent of the improvements, are on file in the office of the City Clerk and are incorporated herein by reference. Harris & Associates C-9 Rancho Palos Verdes May 31, 2017 Citywide Landscaping and Lighting Maintenance District Page 7 PART B ESTIMATE OF COST The estimated cost of the street and sidewalk improvements for Fiscal Year 2017-18, as described in Part A, are summarized herein and described below. All costs include administration and utilities where applicable. 1972 Act Fund 203 BEGINNING FUND BALANCE (7/1) $31,831 ' ESTIMATED REVENUES Proposed Assessment Levy $0 ' Ad Valorem Taxes, less delinquencies Interest Earnings $399 ' City General Fund Contribution to Cover 7 Expenditures $656,757 Total Funds Available $688,987 ESTIMATED EXPENDITURES Street Landscaping Major Thoroughfare Medians $280,000 ' Special Benefit Median Maintenance Street Lights Rue Beaupre (Zone B) $535 ' Alta Vista (Zone E) $865 ' Ocean Terrace (Zone F) $1,019 ' Abalone Cove Shoreline Park Maintenance $55,000 2 Backflow Inspections $6,000_' California Coastal Trail Maintenance $12,200 2 Salvation Army Trail Maintenance $7,400 2 Weed Abatement $15,000 2 Street Tree Trimminq $220,200 ' Street Lights 1911 Act Fund 211 $1,864,578 $605,899 — _-_– $6,894 $2,477,371 Traffic Signals & Safety Lighting $75,000 4 Street Lights $323,000 5 Ocean Terrace (Zone F) $900 ' $599,119 $398,000 Administration and Overhead Anticipated Delinquencies (3%) $0 3 Administration and Overhead (15%) $89,868 3 $59,700 5 $89,868 $59,700 Total Expenditures $688,987 ' $457,700 ENDING FUND BALANCE (6/30) $0 $2,019,671 6 Cost Estimate Footnotes: 1. This item is budgeted within Fund 202, Program 3180, in the FY 2017-18 Proposed City Budget. Harris & Associates C-10 Rancho Palos Verdes May 31, 2017 Citywide Landscaping and Lighting Maintenance District Page 8 2. This item is budgeted within Fund 101, Program 3150, in the FY 2017-18 Proposed City Budget. 3. This item is budgeted within Fund 203, Program 0000, in the FY 2017-18 Proposed City Budget. 4. This item is budgeted within Fund 211, Program 0000, in the FY 2017-18 Proposed City Budget. 5. This item is budgeted within Fund 211, Program 0000, in the FY 2017-18 Proposed City Budget. 6. Staff is currently evaluating alternatives for potential use of some or all of the 1911 Act Fund Balance (currently $2,019,671), including, but not limited to: (1) Acquisition of all street lights within the City boundaries from Southern California Edison and converting them to energy- efficient LED bulbs; (2) Expanding the scope of what is covered by the 1911 Act funds to include building and park exterior lighting, etc.; and/or (3) Reducing or suspending the assessments. These alternatives will be presented to City Council for consideration as a future agenda item. 7 Estimated revenue generated by the 1972 Act proposed assessment for FY 2017-18 was modified to Zero and the total cost for maintenance and servicing of these Citywide facilities ($688,987), with beginning 1972 Act Fund Balance ($31,831), interest earnings in the Fund ($399), will be funded by the City General Fund ($656,757). A table showing how the budget is apportioned to each zone is provided on page 15. Harris & Associates C-11 Rancho Palos Verdes May 31, 2017 Citywide Landscaping and Lighting Maintenance District Page 9 PART C ASSESSMENT ROLL The total proposed assessment for Fiscal Year 2017-18 is zero and therefore assessments will not be submitted to the County and this Report will be on file with the City Clerk for reference and record of the zero assessment. Hams & Associates C-12 Rancho Palos Verdes May 31, 2017 Citywide Landscaping and Lighting Maintenance District Page 10 PART D METHOD OF APPORTIONMENT OF ASSESSMENT 1. GENERAL Part 2 of Division 15 of the Streets and Highways Code, the Landscaping and Lighting Act of 1972, permits the establishment of assessment districts by cities for the purpose of providing certain public improvements which include operation, maintenance and servicing of street lights, traffic signals, and landscaping. The 1972 Act requires that maintenance assessments be levied according to benefit rather than according to assessed value. Section 22573 provides that: The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements. The Act permits the designation of zones of benefit within any individual assessment district if "by reason of variations in the nature, location, and extent of the improvements, the various areas will receive differing degrees of benefit from the improvements" (Sec. 22574). Thus, the 1972 Act requires the levy of a true "assessment" rather than a "special tax." Excepted from the assessment would be the areas of all publicly owned property in use in the performance of a public function. The City has made a determination to also except public utility rights-of-way and open space. 11. PARCEL CLASSIFICATION Since the assessment will be levied against properties as shown on the tax rolls, the final charges must be assigned by Assessor's Parcel Number. If assessments were to be spread just by parcel, not considering land use or parcel size, this would not be equitable: a single- family parcel would be paying the same as a 50 -unit apartment parcel or a large commercial establishment in a similar zone, instead of paying in proportion to benefit. The single-family parcel has been selected as the basic unit for calculation of assessments and is defined as one Equivalent Dwelling Unit (EDU). A methodology has been developed to calculate the EDUs for other residential land uses and for non-residential parcels, as described below. Harris & Associates C-13 Rancho Palos Verdes May 31, 2017 Citywide Landscaping and Lighting Maintenance District Page 11 Single -Family Residential. The single-family residential parcel has been selected as the basic unit for calculation of the benefit assessments. This basic unit shall be called an Equivalent Dwelling Unit (EDU). Parcels zoned for single-family residential uses are assessed 1 EDU. Multiple -Family Residential. Multiple -family residential uses, as well as condominiums, are given a factor of .75 EDU per dwelling unit. Based on data from representative cities in Southern California, the multiple -family residential factor of 75 percent is determined by the statistical proportion of relative trip generation from various types of residential uses, in combination with population density per unit. Non -Residential and Utilities. In converting improved non-residential properties to EDUs, the factor used is the City of Rancho Palos Verdes' minimum requirement for single-family residential areas, which is 1 dwelling unit per 8,000 sq. ft, or 5.445 dwelling units per acre. The non-residential parcels (including utilities) will be assessed 5.445 EDU for the first acre or any portion thereof, and then 25% of 5.445 EDUs (1.36125) for every additional acre or portion thereof, as the utilization of that portion of non-residential property greater than one acre more closely resembles that of vacant land. The minimum number of EDUs per parcel will be 1 EDU. Vacant Property Vacant property is described as parcels with no improved structures. These properties receive benefits based on their land, as this is the basis of their value. Based upon the opinions of professional appraisers, appraising current market property values for real estate in Southern California, the land value portion of a property typically ranges from 20 to 30 percent of the property's total value; in Rancho Palos Verdes, we find that the average is about 50 percent. Additionally, the utilization of vacant property is significantly less than improved property, and vacant property has a traffic generation rate of 0. Therefore, we recommend that vacant property be assessed at the rate of 25 percent of improved property. • Vacant Residential. Residential parcels which do not have structures on the parcels are assessed 25% of a parcel with a single-family dwelling thereon. The parcels will be assessed 0.25 EDU per parcel. • Vacant Non -Residential. Parcels which are not residential parcels and which do not have structures on the parcel are assessed based upon the acreage of the parcel. The parcels will be assessed at the rate of 25% of the developed non-residential properties, or 1.36125 EDU per acre or any portion thereof, with a minimum of .25 EDU per parcel Harris & Associates C-14 Rancho Palos Verdes May 31, 2017 Citywide Landscaping and Lighting Maintenance District Page 12 and up to a maximum of 5 acres (6.80625 EDUs) per parcel, as that portion of the parcel over 5 acres may be considered as open -space, and no longer receive any benefit. • Vacant - Moratorium. The vacant parcels in the moratorium area of the City are assessed based upon the acreage of the parcel. The parcels will be assessed at the reduced rate of 10% of the developed non-residential properties, or 0.5445 EDU per acre, with a minimum of 0.1 EDU per parcel and a maximum of 5 acres (2.7225 EDUs) per parcel, as that portion of the parcel over 5 acres may be considered as open -space, and no longer receive any benefit. The reduced rate is deemed fair and equitable due to the building limitations in this area. All publicly owned property and utility rights-of-way are exempt from assessment, as well as the canyon parcel owned by the Palos Verdes Peninsula Land Conservancy, which is identified by the 2017-18 Assessor's Parcel Number 7583-022-008. The land use classification for each parcel has been based on the Los Angeles County Assessor's Roll. III. BENEFIT DETERMINATION Property values in a community are increased when public infrastructure such as street lights, traffic signals, and median and parkway landscaping are in place, improved, operable, safe, clean and maintained. • The proper functioning of street lighting and traffic signals is imperative for the welfare and safety of the property and owners and users of the property throughout the City. Proper maintenance and servicing of the street lighting system benefits properties within the District by providing proper illumination for ingress and egress and safe traveling at night. Properties within the District also benefit from the proper functioning of the District's traffic signal system. Proper operation of the street light and traffic signal systems is imperative to public convenience, orderly traffic flow, enhanced congestion management and safety. Improved security, fuel conservation, protection of property from crime and vandalism, and reduction of traffic accidents, are special and direct benefits to all properties within the City; lighting benefits are directly related to public safety and property protection and therefore increase desirability and property values. The City costs to administer the improvements are also considered a benefit to all properties. • The City maintains trees and miscellaneous shrubbery throughout the City. The trees Harris & Associates C-15 Rancho Palos Verdes May 31, 2017 Citywide Landscaping and Lighting Maintenance District Page 13 and shrubbery are located within the public street and sidewalk rights-of-way, including in medians and parkways. These trees and shrubbery provide an aesthetically pleasing environment, shade, beautification, and according to some authorities, air purification and sound attenuation. Weed abatement along public ways is necessary to eliminate fire hazards and unsightly conditions. These positive attributes increase the desirability of all properties throughout the City. There are two types of benefits: Citywide Benefits and Local Benefits. F_111wilbVATA191:1:14,1114;111 &1 Citywide Benefits represent the special benefits received by each and every parcel within the District from the improvements, and the associated costs of these benefits are spread equally, based on Equivalent Dwelling Units, to all parcels within the District. Benefits which enhance the desirability and value of all properties within the District include weed abatement, maintenance of street trees, medians, traffic signals and safety lighting, and street lighting on the major thoroughfares, which are the main travel ways of the City. The costs of the City to administer these programs are also considered a Citywide Benefit. B. LOCAL BENEFITS Local Benefits represent the special benefits conferred by localized improvements to parcels within the area surrounding the improvements. The associated costs of these benefits are spread equally over the local area, based on Equivalent Dwelling Units. Local Benefits include the operation, servicing and maintenance of the Rue Beaupre median, Alta Vista median (formerly Landscape and Open -space Maintenance District No. 1) and Ocean Terrace median and street lights (formerly Landscape and Open - space Maintenance District No. 2). These facilities serve only properties within localized areas. Local Benefits also include the operation, servicing and maintenance of street lights which were previously maintained by the County of Los Angeles, which serve the properties adjacent to them. C. ZONES OF BENEFIT A system of zones has been developed to identify the specific benefit each parcel receives. Those zones are as follows: Harris & Associates C-16 Rancho Palos Verdes May 31, 2017 Citywide Landscaping and Lighting Maintenance District Page 14 Zone A. Citywide Benefits, Only These parcels receive only Citywide benefits. Zone B. Rue Beaupre These parcels receive the local benefits of the Rue Beaupre median, as well as the Citywide benefits. Zone C. Clovercliff Park The maintenance of Clovercliff Park is no longer financed through this District; therefore, these parcels receive only the Citywide benefits. Zone D. Vanderlip Park The maintenance of Vanderlip Park is no longer financed through this District; therefore, these parcels receive only the Citywide benefits. Zone E. Alta Vista (Formerly Landscape and Open -space Maintenance District No. 1) These parcels receive the local benefits of the Alta Vista median, as well as the Citywide benefits. Zone F. Ocean Terrace (Formerly Landscape and Open -space Maintenance District No. 2) These parcels receive the local benefits of the Ocean Terrace median and street lights, as well as the Citywide benefits. Zone G. Miraleste Landscaping and Lighting District These parcels are included in an existing landscape and lighting maintenance district under the authority of the Miraleste Park District that maintains the medians in the major thoroughfares and the weed abatement for the area that would otherwise be maintained by the City. This area, therefore, benefits only from the street light/traffic signal system maintenance, street tree maintenance and administration for this District. Zone L. Street Lighting Overlay Zone These parcels receive the local benefit from the street lighting system formerly maintained by the County. This zone overlaps several of the zones above; therefore the parcels within this zone receive this benefit in addition to the benefits received from other respective zones. D. SUB -ZONES A system of sub -zones has been developed to classify the different land use types in Harris & Associates C-17 Rancho Palos Verdes May 31, 2017 Citywide Landscaping and Lighting Maintenance District Page 15 the City. Those sub -zones are as follows: 0. Exempt 1. Single -Family Residential Parcels 2. Multi -Family Residential Parcels 3. Non -Residential Parcels 4. Utilities' 5. Vacant Residential Parcels 6. Vacant Non -Residential Parcels 7. Vacant Moratorium Parcels IV. INVENTORY OF PARCELS The following information was obtained from the Los Angeles County Assessor's Roll, Assessor's Parcel Maps, and the City of Rancho Palos Verdes Planning Department. Land Use 2017 Parcels Dwelling Units Acres EDUs 0. Exempt 321 ----- ----- ----- 1. Single Family Residential Parcels 13,109 13,109 - - - - - 13,109.00 2. Multi -Family Residential Parcels 1,613 2,944 ----- 2,208.00 3. Non -Residential Parcels 90 ----- 348.46 736.35 4. Utilities 14 - - - - - 21.67 64.79 5. Vacant Residential Parcels 209 - - - - - - - - - - 52.25 6. Vacant Non -Residential Parcels 26 - - - - - 184.44 113.18 7. Vacant Moratorium Parcels 140 - - - - - 623.49 79.99 TOTALS: 15,522 16,053 1,178.06 16,363.57 I Utilities are assessed through the Board of Equalization and those parcels are not included in the Assessment Roll submitted to the County, but are listed separately. Harris & Associates C-18 Rancho Palos Verdes May 31, 2017 Citywide Landscaping and Lighting Maintenance District Page 16 The distribution of EDUs per Zone is as follows: Zone EDU A 14,287.26 B 541.25 C 551.00 D 474.25 E 51.25 F 75.50 G 383.06 Total: 16,363.57 BUDGET APPORTIONMENT TO ZONES Citywide improvements (Zones A, B, C, D, E, F and G) Traffic Signals and Safety Lighting $0 Street Trees $220,200 Adminstrative Costs and Overhead $89,868 Reserves $0 Interest ($399) Beginning Fund Balance - 7/1 (positive) ($31,831) City Contribution($277,838) $0 Subtotal: Citywide improvements except Miraleste (Zones A, B, C, D, E, and F) Weed Abatement $15,000 Medians $360,600 City Contribution ($375,600) $0 Subtotal: Rue Beaupre Medians (Zone B) $535 Alta Vista Medians (Zone E) $865 Ocean Terrace Medians and Lights (Zone F) $1,919 City Contribution ($3,319) $0 Subtotal: Total: $0 Harris & Associates C-19 Rancho Palos Verdes May 31, 2017 Citywide Landscaping and Lighting Maintenance District Page 17 The following table shows the summary of the maximum annual assessments for each of the Zones of Benefit which can be levied in succeeding years as previously approved by the City 1467MI I SUMMARY OF MAXIMUM ASSESSMENTS PER EDU Categories of Benefit Category & Zone Zone Zone Zone Zone Zone Zone Rate Budget A B C D E F G $/EDU Citywide lighting, street trees, and administrative costs X X X X X X X $3.77 " $61,691 Citywide weed abatement & medians X X X X X X $12.15 $194,163 Rue Beaupre Medians X $0.99 $535 Alta Vista X $16.88 $865 Ocean Terrace X $25.41 $1,919 Maximum Assessment $15.92 $16.91 $15.92 $15.92 $32.80 $41.33 $3.77 ($/EDU) Total Maximum Assessment $20.38 $21.37 $20.38 $20.38 $37.26 $45.79 $8.23 without Credit ($/EDU) The maximum Citywide lighting, street trees and administrative costs assessment rate is $8.23 per EDU. This Maximum Rate is reduced by the Traffic Signal Costs that are temporarily transferred into the 1911 Act funds. An "X" in the table above indicates the category of benefit that is included in each Zone. The total assessment per zone is the sum of the assessments for each of the categories. Zone L - Street Lighting Overlay Zone. Because of the large reserve fund in the 1911 Act Lighting Maintenance District formerly administered by the County, those properties receiving a direct local benefit from this street lighting system will not be assessed for FY 2017-18. Harris & Associates C-20 Rancho Palos Verdes May 31, 2017 Citywide Landscaping and Lighting Maintenance District Page 18 PART E PROPERTY OWNER LIST A list of names and addresses of the owners of all parcels within this District is shown on the last equalized Property Tax Roll of the Assessor of the County of Los Angeles, which by reference is hereby made a part of this report. This list is keyed to the Assessor's Parcel Numbers as shown on the Assessment Roll on file in the office of the City Clerk of the City of Rancho Palos Verdes. PART F ASSESSMENT DISTRICT DIAGRAM The boundaries of the District are coterminous with the boundaries of the City of Rancho Palos Verdes. A diagram showing the exterior boundaries of the District, the boundaries of any zones within the District, and the lines and dimensions of each lot or parcel of land within the District has been submitted to the office of the City Clerk of the City of Rancho Palos Verdes, and is incorporated herein by reference. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Assessor of the County of Los Angeles for Fiscal Year 2017-18. The Assessor's maps and records are incorporated by reference herein and made part of this report. A reduced copy of the assessment diagrams are attached. Harris & Associates C-21