Item 14 - Reso Est. Assessments for Lighting District for Fiscal Year 2020-21DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA REPORT CityofPoway CITY COUNCIL August 4, 2020 Honorable Mayor and Members of the City cq~~cil Eric Heidemann, Director of Public Works 4, ~ Will Wiley, Assistant Director of Public Works for Maintenance Operationt1if'.---(858) 668-4705 or wwiley@poway.org r Resolution Establishing Assessments for Poway Lighting District to be Collected on the San Diego County Property Tax Roll for Fiscal Year 2020-21 At the City Council meeting on June 16, 2020, Council adopted Resolution No. 20-045 declaring the intention to levy and collect assessments within the Poway Lighting District and set the public hearing for July 21, 2020; however, the item was continued to August 4, 2020. Assessments are proposed to remain unchanged from the Fiscal Year 2019-20 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. Recommended Action: It is recommended that the City Council take public input, close the public hearing and adopt the Resolution. Discussion: The City of Poway Lighting District was formed by the City Council on May 12, 1986. There are approximately 16,173 parcels in the City of Poway. The Poway Lighting District currently assesses 14,781 of these parcels. The benefit units (BUs) derived from these assessable parcels total 22,167 for Zone A, 3,652 for Zone Band 25,819 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. 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. 1 of 5 August 4, 2020, Item #14
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. Public parks, facilities and parking lots are not included in the district. The Fiscal Year 2020-21 assessments are based on the District's operation and maintenance expenses. Assessments are proposed to remain unchanged from the Fiscal Year 2019-20 rates. Total revenues are estimated to be $1,398,943.00, which includes $332,508.12 in Zone A Assessments, $13,662.66 in Zone B Assessments, $350,610.48 in Zone C 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. In Fiscal Year 2019-20, approximately 3,300 low pressure sodium (LPS) lights were converted to light emitting diodes (LEDs). As a result, $1,727,398.00 was appropriated on January 15, 2019, from the Lighting District's uncommitted fund balance of approximately $5.45 million for this project. Beginning last fiscal year, $250,000.00 will be requested each year over a five-year period to replace aging signalized intersections. At the end of the five-year period, it is estimated the District's uncommitted fund balance will be approximately $3.4 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 2020-21 Engineer's Report is on file in the Office of the 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 review under the California Environmental Quality Act (CEQA). Fiscal Impact: Revenue generated from Lighting District assessments is $696,781.00, with general tax contributions of $472,107.00 and interest in an estimated amount of $100,000.00. General Fund contributions are in the amount of $130,055.00. Public Notification: A Notice of Public Hearing was published in the San Diego Union Tribune on Friday, July 24, 2020. 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. Attachments: A. Resolution 2 of 5 August 4, 2020, Item #14
Reviewed/ Approved By: ~Mu& ~ Wendy lef;terman Assistant City Manager 3 of 5 Reviewed By: Alan Fenstermacher City Attorney App roved By: City Manager August 4, 2020, Item #14
RESOLUTION NO. 20-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 2020-21 WHEREAS, the City Council of the City of Poway desires to have Lighting District assessments collected on the San Diego County Property Tax Roll; WHEREAS pursuant to the provisions of City of Poway Resolution No. 00-035 (Policies for 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. 20-045 adopted by the City Council of the City of Poway, County of San Diego, State of California, in connection with the proceedings for 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 16, 2020, 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, on August 4, 2020, the City Council held a duly advertised public hearing to solicit comments from the public, both for and against, relative to this matter; 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: Zone B: Zone C: $15.00 per benefit unit $ 3. 75 per benefit unit $13.58 per benefit unit SECTION 2: The sum of assessments to be collected on the Fiscal Year 2020-21 San Diego County Property Tax Roll to provide for costs of administering, operating and maintaining the Poway Lighting District are as follows: Zone A: Zone B: Zone C: $332,508.12 $ 13,662.66 $350,610.48 SECTION 3: Under Assessment Law, the City of Poway's General Benefit Contribution has been calculated as $130,055.00. 4of5 ATTACHMENT A August 4, 2020, Item #14
Resolution No. 20-Page 2 PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California on the 4th day of August 2020 by the following vote, to wit: AYES: NOES: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Carrie Gallagher, CMC, Interim City Clerk 5 of 5 August 4, 2020, Item #14