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SR-6-E (53) . . 6-E. GS:SES:LR:pamjPHASE6SH.tech.word ;>f, S ~ 'I. ..... ... ;"<1 _ r": ._ Council Meeting: December 8, 1992 Santa Monica, California TO: Mayor and City council FROM: City staff SUBJECT: Recommendation to Accept a Petition For the Installation of streetlights, and Set Public Hearing for January 12, 1993 for the Proposed streetlighting District on Arizona Avenue From Franklin street to Centinela Avenue INTRODUCTION This report requests that City Council accept a petition requesting the installation of streetlights on Arizona Avenue, from Franklin street to Centinela Avenue and adopt the attached Resolution of Intention which sets a public hearing for January 12, 1993 which declares the City's intention to assess property owners for costs and issue bonds as security for unpaid assessments. BACKGROUND Procedure for Residential Streetlight Installation In accordance with city code, whenever the occupants of 60 percent of the residential units in any area petition the City council to institute proceedings for residential streetlighting improvement, the City Council shall institute proceedings under Improvement Act of 1911 to provide residential streetlighting to such area. Property owners are assessed for streetlighting based on their property's dimensions. In accordance with city policy, residential property owners are assessed 50% of their front footage or 20% of their side footage costs for construction of the streetlighting system. The city pays the balance. 6-1: - 1 - UL-Orf ) ,.......... ~ ... ;. . Petitions having the minimum required signatures are presented to city Council and a time and date is set for a public hearing. After considering the public testimony, the City Council may order the work to begin. Then the project is competitively bid by private contractors, a contract is awarded by City council to the lowest and most responsible bidder and bonds are authorized to be sold. Owners may pay for the improvements in full, or they may pay over ten (10) years to include an interest rate which is currently at 8.8% per annum. Discussion Petitions requesting streetlighting along Arizona Avenue as well as several other areas were presented to City Council on June 9, 1992. A public hearing was held on July 28, 1992 and the City council ordered the work to begin in all areas except Arizona Avenue. At the request of City staff, the hearing for Arizona Avenue from Franklin street to Centinela Avenue was deferred to a later date. The deferral was due to a complaint received from a property owner from Arizona Avenue concerning the validity of the streetlighting petition signed by the occupants of the area. A property owner claimed that only the signatures of occupants of the units with Arizona Avenue addresses should be accepted in the petition, and that corner lots with non-Arizona Avenue addresses should not have the right to sign the petition. The city's past and present pol icy has been to accept petitions from occupants of all the units in an area. Some corner lots may have the address of the adjacent street, but since they will benefit from the streetlights, they were allowed to sign the petition and will be assessed. - 2 - A petition was circulated in 1991, but did not have the required 60% signatures. A new petition was requested by the circulators in early 1992. Staff and City Attorney's Office reviewed the new petition for Arizona Avenue and determined that it follows City policy and practice, and is a valid petition. Rent Control Staff verified that 15 out of 25 total occupants of the area signed the petition. The Church of Latter Day Saints located at the corner of Arizona and centinela was not counted towards the 25 total occupants of the area since it was not considered a residential unit. The Pastor, however, is in favor of the streetlight installation, but he is not one of the 15 people who signed the petition since the Church is not eliglble to sign. Even without the church, this petition meets the 60% requirement and conforms with Rent Control Regulations for pass-through of assessments. In most instances, pass-through charges will be less than $2.00 per month per apartment unit. Staff is presenting this petition to City Council for acceptance and is requesting that a public hearing be set for January 12, 1993, to hear protests, if any, and approve the establishment of an assessment district in accordance with the Improvement Act of 1911 of the Streets and Highways Code. Notices will be posted and occupants and property owners will be notified by mail of the time and date 15 days in advance of the public hearing and a notice will be advertised in The Outlook in the manner prescribed by State Law. Copies of the signed petition, a map of the proposed assessment district and a list of property owners and occupants will be - 3 - available for review in the Council Chambers at the time of the public hearing. BUDGET/FINANCIAL IMPACT The 25 residents of this area reside at five residential properties. In addition there is one church in the area. Since the church is not considered a residential unit, it will be assessed the commercial rate. The church is on a corner lot and will be assessed $10.70 per side footage. The estimated prorated assessment for residential property owners is $13.40 per front footage and $5.40 per side footage for corner lots. Out of the six properties to be assessed four are corner lots, therefore, the city's share of the assessment is higher than 50%. The total estimated property owners share of assessments for this area is $5,200. The estimated cost for a typical property owner's and other properties share on Arizona Avenue ranges from $300 - $1,900 depending on lot size. The total estimated construction cost is $21,000. A grant program will be available for low to moderate income households. Appropriation authority for the City's contribution is available in CIP Account No. 01-770-453-25491-8917-99155, "New Streetlight Systems" , in the amount of $15,800.00. The remaining costs for the project will be paid through property owner assessments. Assessments will be paid upon completion of the work and will be held in a trust account #80-000-000-00000-9750-04289 for payment to the contractor installing the streetlights. Bonds are then issued for any unpaid assessments. Bond proceeds are paid to the Contractor and the property owner(s) then pay the bond holder(s) over time. - 4 - RECOMMENDATION It is recommended that city Council: l. Accept the streetlight petition for the installation of streetlights on Arizona Avenue - from Franklin street to Centinela Avenue; 2. Adopt the attached Resolution setting a pUblic hearing for January 12, 1993, and declare the City's intention to assess property owners for costs and issue bonds as security for unpaid assessments. Prepared by: stan SchOll, Director of General Services Tony Antich, city Engineer Attachment: Resolution of Intention - 5 - . . RESOLUTION NUMBER 8505(CCS) (CITY COUNCIL SERIES) A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA SETTING A PUBLIC HEARING ON JANUARY 12, 1993 FOR THE PURPOSE OF DETERMINING WHETHER OR NOT THE PUBLIC CONVENIENCE ANO NECESSITY REQUIRE THE CONSTRUCTION OF STREETLIGHTING AND DECLARING ITS INTENTION TO CONSTRUCT STREETLIGHTING AND APPURTENANT WORK ON ARIZONA AVENUE FROM FRANKLIN STREET TO CENTINELA AVENUE AS SHOWN ON CITY DRAWING NO. 10042 WITHIN THE CITY OF SANTA MONICA WHEREAS, the City Council of the City of Santa Monica purposes to initiate proceedings under the Improvement Act of 1911 for streetlighting improvements on Arizona Avenue from Franklin Street to centinela Avenue; and WHEREAS, Section 19 of Article XVI of the California Constitution provides that certain specified debt limitation and majority protest provisions shall not apply, if after the giving of such reasonable notice by publication and posting and the holding of such public hearing as the City council of the City of Santa Monica shall have prescribed, the City Council by no less than four-fifths vote of all members thereof finds and determines that the public convenience and necessity require the proposed improvements to be made~ and WHEREAS, streets and Highways Code Section 2804 provides that the "Special Assessment, Investigation, Limitation and Majority Protest Act of 1931" shall not apply to any proceeding otherwise subject thereto when said improvement proceeding is by a Charter - 6 - City and said City has complied with the provisions of Section 19 of the Article XVI of the california Constitution: and WHEREAS, the city of Santa Monica is a Charter city of the State of California, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. The City council proposes to initiate proceedings for the installation of streetlighting and appurtenant work on the street shown on City Drawing No. l0042A and generally known as, Phase VI - Construction of High Pressure SodiUlD. streetlight systems on : ARIZONA AVENUE - from Franklin street to centine1a Avenue; within the City of santa Monica. SECTION 2. The total estimated cost of the proposed improvement is twenty one thousand dollars ($21,000). SECTION 3. Improvements shall be conducted under the Improvement Act of 1911, which is Division 7 of the Streets and Highways Code of the state of California. SECTION 4. The proposed work or improvement in the opinion of City Council of the City of Santa Monica is of more than local or ordinary public benefit, and City Council hereby proposes that the district in the City of Santa Monica to be benefited by said work or improvement and to be assessed to pay one-half of the cost and expense thereof, is shown upon a certain map indicating the exterior boundary thereof, which said Drawing No. 10042-A is on file in the - 7 - . Office of the City Engineer. The map hereby is referred to and shall govern for all details as to the extent of said assessment district. The assessment district includes in general the lots and parcels described in Section 1 above but reference hereby is made to said Drawing for all details as to the extent of said assessment district and for any variation between the last mentioned general description and the extent of said assessment district as shown on said map. All public streets or alleys, or portions thereof, hereby are excepted from said district. SECTION 5. The City will pay a portion of the cost and expenses of the work described herein, and the City Controller is authorized and directed to pay the same immediately upon confirmation of the assessment by City council. SECTION 6. Serial bonds bearing interest at the rate of 8.8% per annum shall be issued to represent each assessment of One hundred fifty dollars ($150.00) or more remaining unpaid for thirty ( 30) days after the recording of the warrant. Said serial bonds shall extend over a period ending nine (9) years from the second day of January next succeeding the next September 1st following their date. Payments on the principal of unpaid assessments and interest shall be made by property owners to the city Treasurer and the same shall be disbursed by him or as provided in the "Improvement Act of 1911" hereinafter referred to. In accordance with streets and Highways Code Section 6442, the first two percent delinquency penalty authorized by such section shall be retained by the City Treasurer as the cost of servicing the delinquency. - 8 - - SECTION 7. Notice is hereby given that on Tuesday, the 12th day of January , 1993, at 7:30 p.m., in the City Council Chambers located in City Hall, 1685 Main street, Santa Monica, California, there shall be a public hearing before said City Council for the purpose of determining whether the pUblic convenience and necessity require the above-described improvement and for the purpose of allowing any and all persons having any objections to the proposed work or improvement to appear and show cause why the said proposed work or improvement should not be carried out in accordance with said Resolution of Intention. Inquiries concerning this public hearing should be directed to the Department of General Services, Engineering Division, at (310) 458-8721. SECTION 8. The city Clerk shall give notice of the hearing by posting a copy of this Resolution in the manner described by Streets and Highways code section 5065 and by publication as hereinafter provided. Any interested person may protest against the proposed improvement in writing filed with the City Clerk at any time not later than the hour set for the hearing in the manner provided by Streets and Highways Code Section 5220. SECTION 9. The superintendent of streets shall cause to be conspicuously posted along the line of said contemplated work or improvement and also doing all the open streets within the said district, notice of the passage of this Resolution of Intention in the manner and form prescribed by law. The City Clerk hereby is directed to mail notices, in the manner and form prescribed by law, of the adoption of this Resolution to all persons owning real property in the hereinbefore - 9 - . described assessment district, whose names and addresses appear on the last equalized assessment roll for the city taxes or as known to the city Clerk. SECTION 10. The city Clerk hereby is directed to publish this Resolution in The Outlook on two successive dates, the first publication is to be made not less than fifteen (15) days prior to the date of the above public hearing. SECTION 1l. Pursuant to Public contract Code Section 20433, the City Council hereby states that the property owners may not contract for the improvements and that the City shall be responsible for letting and administering the construction contract for this district. SECTION 12. The City hereby declares that Community Development Block Grant funds may be applied for payment of assessments on property owned by low to moderate income households. SECTION 13. The City Clerk shall certify to the adoption of the Resolution, and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: LAWRENCE City Attorney - 10 - . . Adopted and approved this 8th day of December, 1992. ~~i /'- ayor I hereby certify that the foregoing Resolution No. 8505(CCS) was duly adopted by the city council of the City of Santa Monica a t a meeting thereof held on December 8, 1992 by the following Council vote: Ayes: Councilmembers: Abdo, Genser, Greenberg, Holbrook, Olsen, Rosenstein, Vazquez Noes: Councilmembers: None Abstain: Counci1members: None Absent: Councilmembers: None ATTEST: ~/A1Z~ - City clerki ~