SR-507-000
EPWM:CP:AA:BZ F:\Data\spfiles\sp1446\ CC1446CONF2.DOC
Council Meeting: October 10, 2000 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to Adopt the Attached Resolution to Set a Public Hearing
on November 28, 2000 for the Confirmation of Assessment Costs for the
Installation of Streetlights on Various City Streets
Introduction
This report requests that the City Council set a public hearing on November 28, 2000 to
confirm assessment of costs for the installation of streetlights on the following streets:
23rd Street - from Arizona Avenue to Wilshire Boulevard
29th Street - from Ocean Park Boulevard to Pearl Street
Lincoln Boulevard - from Montana Avenue to Alta Avenue
Princeton Street - from Wilshire Boulevard to Washington Avenue
Prospect Avenue - from Marine Street to the end of street (dead end)
Yale Street - from Montana Avenue to Washington Avenue
Background
In accordance with City policy, whenever 60% of the occupants of the residential units
in any area petition the City Council to institute proceedings for residential street
lighting, the City Council shall institute those proceedings under Proposition 218, and
the Improvement Act of 1911 to provide residential street lighting to the area. In 1995
and 1996, successful petitions were received from residents representing the streets
referenced above.
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Rent Control staff reviewed these petitions and determined that they conform with Rent
Control regulations for pass-through of assessments to tenants. The locations went
through the preliminary stages of the 1911 Act proceedings, but with the passage of
Proposition 218 in November 1996, measures were instituted to observe new
proceedings.
Proposition 218 requirements were met, and on January 15, 1998, the City Council
accepted petitions for these streets and adopted a Resolution of Intention to establish
the assessment district. On July 14, 1998 a contract was awarded by the City Council to
C. T. & F., Inc., the lowest responsible bidder, bonds were authorized to be sold, and the
Council ordered the work to commence. Street light installation was completed in the
spring of 2000, with a notice of completion filed on June 16, 2000.
Discussion
At the completion of street light installations, property owners are assessed for street
lighting based on the size of their property. The assessment cost for commercial and
residential property owners for the installation of standard street lighting is $18.29 and
$9.15 per front footage respectively. These assessed costs are lower than the original
estimates provided to property owners and occupants. Low to moderate-income
households can apply for assistance through a CDBG grant program.
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If the assessment exceeds $150, owners have the option of either paying for the
improvements over ten (10) years at an 8.5% interest rate, or paying their assessment in
full within 30 days after being invoiced. The work was completed and the streetlights are
fully operational. Engineering Division staff will provide the Rent Control Department staff
with assessment amounts for each property. Rent Control will work with landlords of
residential properties regarding the pass-through of costs to tenants.
A public hearing to confirm the assessment of costs must be held pursuant to Section
5882 of the California Streets and Highways Code. The attached resolution sets the
public hearing for 7:00pm on November 28, 2000. All affected property owners will be
notified of the public hearing date and the assessment amount at least forty-five days
prior to the public hearing. A list of property owners and assessment amounts will be
available to the City Council at the time of the public hearing.
Budget/Financial Impact
The total project cost is $209,069.53. The cost breakdown is as follows:
Property Owners' Share $ 102,015.94
City's Share $ 107,053.59
Total Project Cost $ 209,069.53
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The total cost includes $175,530.00 for construction costs and $33,539.53 for project
management, inspection, administration of the assessment district, advertisement,
mailings and notification of property owners, recordation costs, and invoicing for up to
ten (10) years of property owners who choose to pay their assessment on the
installment plan.
The City paid the Contractor $87,895.16 at completion of construction from CIP account
C01015594.589000. The contract's remaining balance of $87,634.84 will be paid to the
Contractor as part of the property owner assessments. Assessments paid in full by the
property owners will be held in Trust Account No. 80.201181 pending payment to the
contractor's assignee. Bonds are then issued for any unpaid assessments. Bond
proceeds are paid to the contractor's assignee and the property owner(s) remits to the
bondholder over time.
Recommendation
It is recommended that the City Council:
1. Adopt the attached resolution;
2. Set a public hearing for November 28, 2000 to confirm assessment costs.
Prepared by: Craig Perkins, Director of Environmental and Public Works
Management Department
Anthony Antich, City Engineer
Bill Zein, Sr. Civil Engineer
Attachments: Resolution
Notices of Assessment and Time of Public Hearing
List of Property Owners
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