Item 3.10 - Adoption of Reso Establishing Assessments for Lighting DistrictAPPROVED
City of Poway APPROVED AS AMENDED ❑
(SEE MINUTES)
(i:)C
OUNCIL AGENDA REPOR DENIEDREMOVED ❑
CONTINUED
Resolution No. I re -M
DATE: July 17, 2018
TO: Honorable Mayor and Members of the City Council (�
FROM: Michael Obermiller, P. E., Director of Public Works -1-AQ
CONTACT: Eric Heidemann, Assistant Director of Public Works for Maintenance
Operations
eheidemann@poway.org
SUBJECT: Resolution Establishing Assessments for Poway Lighting District to be
Collected on the San Diego County Property Tax Roll for Fiscal Year
2018-19
Summary:
At the City Council meeting on June 5, 2018, Council adopted Resolution No. 18-032 declaring
the intention to levy and collect assessments within the Poway Lighting District and set the public
hearing for July 17, 2018.
Assessments are proposed to remain unchanged from the Fiscal Year 2017-18 rates; however,
the District's overall revenue from assessments will increase due to land development, land use
designation changes, and the creation of new subdivisions.
Beginning in the spring of Fiscal Year 2018-19, staff will be undertaking capital improvement
projects for installation of light emitting diode (LED) fixtures and replacement of aging equipment
at signalized intersections throughout the City, which will span the course of five years. It is
anticipated the District's capital reserves will be adequate enough to fund these projects along
with ongoing maintenance expenses.
Recommended Action:
It is recommended that the City Council adopt the attached Resolution establishing assessments
for Poway Lighting District to be collected on the San Diego County Property Tax Roll for Fiscal
Year 2018-19.
Discussion:
The City of Poway Lighting District was formed by the City Council on May 12, 1986.
There are approximately 16,179 parcels in the City of Poway. The Poway Lighting District
currently assesses 14,795 of these parcels. The benefit units (BUS) derived from these
assessable parcels total 22,105 BUs for Zone A, 3,432 BUS for Zone B, and 25,537 BUs for Zone
C.
Zone A parcels have street lighting within their immediate vicinity, and share equitably in benefit
from major arterial street lighting. Zone A assessments are based on $15.00 per benefit unit per
year for improved parcels and $7.50 per benefit unit per year for vacant, buildable parcels.
1 of 5 July 17, 2018, Item #3.10
Resolution Establishing Assessments — Lighting District
July 17, 2018
Page 2
Zone B parcels do not have benefit of immediate street lighting, but share equitably in benefit
from major arterial street lighting. Zone B assessments are based on $3.75 per benefit unit per
year for improved parcels and $1.88 per benefit unit per year for vacant, buildable parcels. Zone
C assessments, which fund the operation and maintenance of traffic signals, safety lights, flashing
beacons, and lighted street name signs within the City boundaries, are collected from all
assessable parcels in Poway. Improved parcels are assessed at $13.58 per benefit unit per year.
Buildable parcels that are vacant are assessed at a rate of 50 percent, or $6.79 per benefit unit
per year.
The Fiscal Year 2018-19 assessments are based on the District's operation and maintenance
expenses. Assessments are proposed to remain unchanged from the Fiscal Year 2017-18 rates.
The District's overall revenue from assessments will increase due to land development, land use
designation changes, and the creation of new subdivisions. Total revenues are estimated to be
1,303,081, which includes Zone assessments, the annual Ad Valorem Tax, City General Benefit
Contribution, and estimated interest. In addition, the District has projected ongoing increased
expenses in operations and maintenance, energy administration and capital replacement costs.
Beginning in June 2019, low-pressure sodium light fixtures will no longer be produced. As a
result, approximately $1,095,600 of the District's $4.35 million uncommitted fund balance will be
requested in the spring of Fiscal Year 2018-19 to convert 3,075 low pressure sodium street light
fixtures and 218 safety light fixtures to light emitting diodes (LEDs). This project will most likely
be phased over two or more fiscal years. LED light fixtures have a warranty period anywhere
between five to ten years depending upon the manufacturer. It is anticipated annual maintenance
costs will drop over the next five to ten years by approximately $86,000 annually, which includes
20,000 for the annual relamping program and $66,000 for lamp replacements due to outages.
Notably, staff is currently piloting different LED fixtures in multiple locations throughout the City.
Additionally, several of the City's signalized intersections have aging equipment. Beginning in
Fiscal Year 2019-20, $350,000 will be requested each year over a five-year period to replace the
aging equipment, for a minimum of three signalized intersections, annually. At the end of the five-
year period, it is estimated the District's uncommitted fund balance will be approximately $1.7
million. Each fiscal year, the capital improvement project fund commitments will be re-evaluated
to ensure funding is available for unanticipated and ongoing maintenance and repair projects.
The City Council's approved Fiscal Year 2018-19 Engineer's Report is on file with the office of
the Poway City Clerk, 13325 Civic Center Drive and the Department of Public Works, 14467 Lake
Poway Road, Poway, California.
Environmental Review:
This action is not subject to California Environmental Quality Act review.
Fiscal Impact:
Combined, revenues of $1,178,260 generated from Lighting District assessments and interest,
and a General Fund contribution in the amount of $124,821, will be sufficient to offset the District's
maintenance costs of $1,291,860.
2 of 5 July 17, 2018, Item #3.10
Resolution Establishing Assessments — Lighting District
June 20, 2017
Page 3
Public Notification:
Pursuant to SB 1977, Section 50078.6, all public notification requirements have been met. No
responses have been received regarding the proposed assessments at the time this report was
written.
Attachment:
A. Resolution Establishing Assessments for Poway Lighting District to be Collected on the
San Diego County Property Tax Roll for Fiscal Year 2018/2019
Reviewed/Approved By: Reviewed By: Approved By:
rjA L, -
Wend aserman Alan Fenstermacher Tina M. White
Assistant City Manager City Attorney City Manager
3 of 5 July 17, 2018, Item # 3.10
RESOLUTION NO. 18-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
POWAY, CALIFORNIA, ESTABLISHING ASSESSMENTS FOR
POWAY LIGHTING DISTRICT TO BE COLLECTED ON THE
SAN DIEGO COUNTY PROPERTY TAX ROLL FOR FISCAL
YEAR 2018-19
WHEREAS, the City Council of the City of Poway desires to have the Poway Lighting
District assessments collected on the San Diego County Property Tax Roll;
WHEREAS, on July 17, 2018, the City Council held a duly advertised public hearing to
solicit comments from the public, both pro and con, relative to this application;
WHEREAS, pursuant to the provisions of City of Poway Resolution No. 00-035 (Policies
for the Poway City Lighting District) and Assessment Law being the "Landscape and Lighting
Act of 1972" (being Part 2 of Division 15 of the California Streets and Highways Code),
applicable provisions of "Proposition 218" (being Article XIII C of the California Constitution),
and provisions of the "Proposition 218 Omnibus Implementation Act" (being California Senate
Bill 919), and in accordance with the Resolution of Intention, being City of Poway Resolution No.
18-032 adopted by the City Council of the City of Poway, County of San Diego, State of
California, in connection with the proceedings for the Poway Lighting District, the Assessment
Engineer to the City of Poway has submitted an Engineer's Report for the District as required by
California Streets and Highways Code, Section 22565;
WHEREAS, on June 5, 2018, at a regular meeting of the Poway City Council, the
amounts to be collected have been set forth in a public Engineer's Report;
WHEREAS, the public has been allowed to comment on these amounts and this action
has been duly advertised as required by law; and
WHEREAS, this action is authorized by the laws of the State of California.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as
follows:
Section 1: The Assessment Rates for three (3) zones are as follows:
Zone A $ 15.00 $ 7.50
Zone B $ 3.75 $ 1.88
Zone C $ 13.58 $ 6.79
Section 2: The sum of assessments, as calculated by the City, wherein the final report
shall be published August 10, 2018, is to be collected on the Fiscal Year 2018-19 San Diego
County Property Tax Roll to provide for the cost of administering, operating, and maintaining the
Poway Lighting District.
4 of 5 ATTACHMENT A July 17, 2018, Item #3.10
Resolution No. 18 -
Page 2
Section 3: Under Assessment Law, the Ad Valorem Tax contribution has been
calculated at $361,998 and the City General Benefit Contribution at $124,821.
Section 4: The City Clerk shall cause this Resolution to be published in the Poway
News Chieftain, a newspaper of general circulation in the City of Poway.
PASSED, ADOPTED AND APPROVED by the City Council of the City of Poway,
California, at a regular meeting this 17th day of July 2018.
Steve Vaus, Mayor
ATTEST:
Nancy Neufeld, CMC, City Clerk
STATE OF CALIFORNIA )
SS
COUNTY OF SAN DIEGO )
I, Nancy Neufeld, City Clerk of the City of Poway, California, do hereby certify under
penalty of perjury that the foregoing Resolution No. 18- was duly adopted by the City Council
at a meeting of said City Council held on the 17th day of July 2018, and that it was so adopted
by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
Nancy Neufeld, CMC, City Clerk
City of Poway
5 of 5 July 17, 2018, Item #3.10