CC SR 20180821 03 - FY 18-19 Citywide LLMD
PUBLIC HEARING
Date: August 21, 2018
Subject: Consideration and possible action to approve setting at zero the annual levy and
assessments of the existing Citywide Landscaping and Lighting District for FY 18-19
Subject Property/Location: Citywide
1. Report of Notice Given: City Clerk
2. Declare Public Hearing Open: Mayor Brooks
3. Request for Staff Report: Mayor Brooks
4. Staff Report & Recommendation: Ron Dragoo, Principal Engineer
5. Council Questions of Staff (factual and without bias):
6. Testimony from members of the public:
The normal time limit for each speaker is three (3) minutes. The Presiding Officer may grant additional time to a representative speaking
for an entire group. The Mayor also may adjust the time limit for individual speakers depending upon the number of speakers who
intend to speak.
7. Declare Hearing Closed/or Continue the Public Hearing to a later date: Mayor Brooks
8. Council Deliberation:
The Council may ask staff to address questions raised by the testimony, or to clarify matters. Staff and/or Council may also answer
questions posed by speakers during their testimony. The Council will then debate and/or make motions on the matter.
9. Council Action:
The Council may: vote on the item; offer amendments or substitute motions to decide the matter; reopen the hearing for additional
testimony; continue the matter to a later date for a decision.
RANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 08/21/2018
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
FY18-19.
RECOMMENDED COUNCIL ACTION:
(1) Adopt Resolution No. 2018___, A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF RANCHO PALOS VERDES, DECLARING ITS INTENTION TO
SET THE LEVY AT ZERO WITHIN THE CITYWIDE LANDSCAPING AND
LIGHTING MAINTENANCE DISTRICT FOR FISCAL YEAR 2018-2019
PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972, PART 2
OF DIVISION 15 OF THE CALFORNIA STREETS AND HIGHWAYS CODE.
FISCAL IMPACT: A zero assessment will require that the expenditures of the District
be paid for through other sources. Measure M and General Funds will be used to cover
the District’s estimated expenditures of $688,987 for FY18-19 (countywide ½-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: Ron Dragoo, PE, Principal/City Engineer
REVIEWED BY: Elias Sassoon, PE, Director of Public Works
APPROVED BY: Doug Willmore, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Resolution No. 2018___ (page A-1)
B. Amended Engineer’s Report for FY17-18 (page B-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 (LLMD), pursuant to the
Landscaping and Lighting Act of 1972, codified as Part 2 of Division 15 of the California
Streets and Highways code (the “Act”). The purpose of forming the LLMD was to
provide additional funding for the ongoing operation, maintenance, and servicing of
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median landscaping, street trees, street lighting, and traffic signals within the
boundaries of the City of Rancho Palos Verdes.
The LLMD has been funded through assessments on properties throughout the City.
Each parcel was 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 LLMD, 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.
This year, an Engineer’s Report has not been prepared as the levy will be set to zero.
As required by the ACT, on August 15, 2017, the City Council adopted Resolution No.
2018-049, to set the LLMD levy at zero for FY 17-18
The LLMD 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). Setting the levy to zero annually is required to keep the
District in place. 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 B-20 of the Amended Engineer’s Report. The process would be the
same as in past years (i.e., a resolution ordering the Engineer’s Report, a resolution
approving the Engineer’s Report, a noticed public hearing, and a resolution authorizing
the levy of assessments).
Estimate of Cost for District
The LLMD Engineer, Harris & Associates, Inc., conducted its last review of the
proposed District budget for FY17-18 and prepared the Amended Engineer’s Report
(Attachment B), which was used when the levy and assessments of FY17-18 Citywide
LLMD for FY17-18 were initially set at zero. The “Estimate of Cost” (pages B-10 and B-
11) provides a summary of the FY17-18 LLMS’s estimated revenues and expenditures.
Costs are estimated to remain the same through the FY18-19.
A zero assessment requires that the District’s annual estimated expenditures of
$688,987 be paid for through other sources. Measure M funds (countywide ½-cent
sales tax increase approved by voters on November 8, 2016) will be used to cover the
District’s expenditures for FY18-19.
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ALTERNATIVES:
In addition to the Staff recommendation, the following alternative is available for the City
Council’s consideration:
1. Direct Staff to modify the Amended Engineer’s Report and bring this item
back to City Council for approval at a future meeting.
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RESOLUTION NO. 2018-__
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO
PALOS VERDES DECLARING ITS INTENTION TO SET THE LEVY AT
ZERO WITHIN THE CITYWIDE LANDSCAPING AND LIGHTING
MAINTENAN CE DISTRICT FOR FISCAL YEAR 2018-2019 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 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,
WHEREAS, in accordance with Section 22624 of the Streets and Highways Code,
the City Council now desired to declare its intention to set the levy at zero for assessments
within the District for Fiscal Year 2018-19; and
WHEREAS, Measure M funds (countywide ½-cent sales tax increase approved by
voters on November 8, 2016) will be used to cover the District’s expenditures for FY 18-
19.
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 an existing assessment district designated
“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
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Resolution No. 2018-__
Page 2 of 3
and Highways Code (commencing with Section 22500) (the “Act”) for the fiscal year
commencing July 1, 2018, and ending June 30, 2019, which previously paid for the
improvements described below in Section 4 of this Resolution.
Section 3. The boundaries of the District are coterminous with the boundaries
of the City of Rancho Palos Verdes.
Section 4. The proposed improvements are briefly described as follows: The
operation, maintenance and servicing of public streets 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 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 City Council may elect to levy an assessment in future years
following a noticed public hearing as required by Section 22625 of the Act at a rate that
shall not exceed the rate which was in effect on July 1, 1997.
Section 6. The City Council hereby declares its intent to apply any remaining
1911 Act Lighting Maintenance District Fund balance to the costs and expenses of
operating, maintaining and servicing traffic signals and safety 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 7. 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.
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Resolution No. 2018-__
Page 3 of 3
PASSED, APPROVED AND ADOPTED this 21st day of August, 2018.
__________________________
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. 2018-__ was duly and regularly passed and adopted by the
said City Council at a regular meeting thereof held on ____________ ___, 2018.
________________________________
City Clerk
City of Rancho Palos Verdes
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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
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ENGINEER'S REPORT
CITY OF RANCHO PALOS VERDES
May 31, 2017
Page i
CITYWIDE LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT
The undersigned respectfully submits the enclosed report as directed by the City Council.
DATED: May31,2017
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
I HEREBY CERTIFY that the enc lo sed 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
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CITY OF RANCHO PALOS VERDES
May 31, 2017
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CITYWIDE LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT
ENGINEER'S REPORT
TABLE OF CONTENTS
Certificates ........................................................................................................................ i
Introduction ...................................................................................................................... 1
Report .............................................................................................................................. 3
Part A -Plans and Specifications ......................................................................... 5
Part B -Estimate of Cost ...................................................................................... 7
Part C -Assessment Roll ..................................................................................... 9
Part D -Method of Apportionment of Assessment ............................................. 10
Part E -Property Owner List .............................................................................. 18
Part F -Assessment District Diagram ................................................................ 18
Appendix - 3 Year Projection
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INTRODUCTION
May 31, 2017
Page 1
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
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shown in the table on page 17 of this report.
IMPACT OF PROPOSITION 218
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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.
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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
May 31, 2017
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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.
PARTS
An estimate of the cost of the proposed improvements for FY 2017-18, including incidental costs
and expenses in connection therewith.
PARTC
An assessment of the estimated cost of the improvements on each benefited lot or parcel of land
within the Assessment District.
PARTD
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.
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PARTE
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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.
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PART A
PLANS AND SPECIFICATIONS
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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.
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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.
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PARTB
ESTIMATE OF COST
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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.
BEGINNING FUND BALANCE (7/1)
ESTIMATED REVENUES
1972 Act
Fund 203
$31,831 7
Proposed Assessment Levy .... I _____ $_o_.17
Ad Valorem Taxes, les_s_d_e_li_nq~u_e_n_c_ie_s ________ _
Interest Earnings $399 7
City General Fund Contribution to Cover
Expenditures
Total Funds Available
ESTIMATED EXPENDITURES
Street Landscaping
Major Thoroughfare Medians
Special Benefit Median Maintenance
$656,757
$688,987
$280,000 1
________B.ue Beaupre (Zone 13) _____ . $535 1
Alta Vista (Zone E) $865 1
Ocean Terrace (Zone F) $1,019 1
Abalone Cove Shoreline Park Maintenance $55,000 2
------
Backflow Inspections $6,000 1
California Coastal Trail Maintenance $12,200 2
-----
Salvation Army Trail Maintenance $7,400 2
Weed Abatement $15,000 2
Street Tree Trimming . $220,200 1
Street Lights
Traffic Signals & Safety Lighting
Street Lights
Ocean Terrace (Zone F)
Administration and Overhead
Anticipated Delinquencies (3%)
Administration and Overhead (15%)
Total Expenditures
ENDING FUND BALANCE (6/30)
Cost Estimate Footnotes:
$900 1
$599,119
$0 3
$89,868 3
$89,868
$688,987 7
$0
1911 Act
Fund 211
$1,864,578
$605,899
$6,89.:J._
$2,477,371
$75,000 4
$323,000 5
$398,000
$59,700 5
$59,700
$457,700
$2,019,671 6
1· This item is budgeted within Fund 202, Program 3180, in the FY 2017-18 Proposed City Budget.
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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.
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PARTC
ASSESSMENT ROLL
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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.
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PART D
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METHOD OF APPORTIONMENT OF ASSESSMENT
I. 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.
II. 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.
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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
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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.
Ill. 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
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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.
A. CITYWIDE BENEFITS
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:
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Zone A. Citywide Benefits, Only
These parcels receive only Citywide benefits.
Zone B. Rue Beaupre
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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
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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 1
5. Vacant Residential Parcels
6. Vacant Non-Residential Parcels
7. Vacant Moratorium Parcels
IV. INVENTORY OF PARCELS
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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.
2017 Dwelling
Land Use Parcels Units Acres ED Us
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
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.
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The distribution of EDUs per Zone is as follows:
Zone
A
B
c
D
E
F
G
Total:
EDU
541.25
551.00
474.25
51.25
75.50
383.06
16,363.57
BUDGET APPORTIONMENT TO ZONES
Citywide improvements (Zones A, B, C, D, E, F and G)
Traffic Signals and Safety Lighting
Street Trees
Adminstrative Costs and Overhead
Reserves
Interest
Beginning Fund Balance -7/1 (positive)
City Contribution
Subtotal:
Citywide improvements except Miraleste (Zones A, B, C, D, E, and F)
Weed Abatement
Medians
City Contribution
Subtotal:
Rue Beaupre Medians (Zone B)
Alta Vista Medians (Zone E)
Ocean Terrace Medians and Lights (Zone F)
City Contribution
Subtotal:
Total:
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$0
$220,200
$89,868
$0
($399)
($31,831)
($277,838)
$0
$15,000
$360,600
($375,600)
$0
$535
$865
$1,919
($3,319)
$0
$0
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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
Council.
SUMMARY OF MAXIMUM ASSESSMENTS PER EDU
Categories of Benefit
Category & Zone Zone Zone Zone Zone Zone
Budget A B c D E F
Citywide lighting, street trees,
and administrative costs x x x x x x
$61,691
Citywide weed abatement
& medians x x x x x x
$194,163
Rue Beaupre Medians x
$535
Alta Vista x
$865
Ocean Terrace x
$1,919
Maximum Assessment $15.92 $16.91 $15.92 $15.92 $32.80 $41.33 ($/EDU)
Total Maximum Assessment $20.38 $21.37 $20.38 $20.38 $37.26 $45.79 without Credit ($/EDU)
Zone Rate
G $/EDU
x $3.77 *
$12.15
$0.99
$16.88
$25.41
$3.77
$8.23
*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.
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PART E
PROPERTY OWNER LIST
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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.
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