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SR-507-000 (63) . .- ~CitYOf Santa Moniea" City Council Report City Council Meeting: October 10, 2006 Agenda Item: ~ To: Mayor and City Council From: Craig Perkins, Director - Environmental and Public Works Management Public Hearing on Proposed Street Lighting Assessment District for 30th Street between Pico Boulevard and Pearl Street, and Georgina Avenue between 4th and ih Streets Subject: Recommended Action It is recommended that the City Council: 1. hold a public hearing regarding the formation of assessment districts for the installation of new street lights in conformance with Proposition 218, enacted as Article 13D of the California Constitution, on: District A - 30th Street from Pico Boulevard to Pearl Street District B - Georgina Avenue from 4th Street to ih Street; 2. close the public hearing and direct the City Clerk to accept the ballots submitted and tabulate the vote; and 3. continue the hearing to the November 14, 2006 Council Meeting for adoption of the resolution to certify the results. Executive Summary The installation of new street lights in residential areas is initiated by petition of the residents and/or property owners in accordance with the Improvement Act of 1911, 1 Proposition 218, and Santa Monica Municipal Code 7.04.860. Successful petitions, those containing signatures of 60% of the residents, have been received and staff prepared street light petitions for (District "A") 30th Street from Pico Boulevard to Pearl Street and (District "B") Georgina Avenue from 4th Street to th Street. A public meeting held May 3, 2006, provided residents from both districts the opportunity to choose from three street light styles. The total cost for this project is estimated at $444,000, which includes the estimated property owner Proposition 218 assessment of $220,000 and the City's estimated contribution of $224,000. There are currently no funds in the Fiscal Year 2006-07 budget allocated for this project. Staff will return on November 14 to certify the election results and, if the assessment passes, with financial alternatives. Discussion City Council accepted petitions and set a public hearing for the formulation of Street Light Assessment Districts for District "A" and District "B." Notices of the City's intent to form assessment districts and hold public hearings were mailed to property owners forty-five (45) days in advance of the time and place of the public hearing in accordance with State law. In addition to the notice, property owners were sent a ballot and return envelope for the purpose of voting for or against the assessment. All properties are assessed for street lighting based upon the parcel front or side footage. If the legal address of the assessed parcel is on the street receiving street lights, the parcel will be assessed at the front footage rate. If the legal address of the parcel is on the cross street of the street receiving street lights, the parcel will be 2 assessed at the side footage rate; i.e., some corner parcels. In accordance with past City policy, the proposed assessment allocation for streetlights is: TYPE OF TYPE OF CITY PROPERTY PROPERTY FOOTAGE SHARE SHARE Residential Front Footage 50% 50% Side Footage 80% 20% Non-Residential Front Footage 20% 80% Side Footage 60% 40% After the public hearing, the City Council may order the improvement work to begin. Competitive bids for the project will be solicited by the City, and a contract will be awarded by City Council. Property owners may repay the improvements in full after construction is completed, or they may opt to repay the bond holder in installments over a ten-year period. Bond installment payments will include interest equal to the prime rate. City Council will authorize the issuance of bonds for the amounts that will be repaid in bond installments. Copies of the signed petitions, a map of the proposed assessment district, and an assessment roll will be available in City Hall at the public hearing. Ballot Results Ballots are accepted until the close of the public hearing. At the hearing, the City Council will listen to any objections and protests to the proposed assessment. At the conclusion of the public hearing, the assessment ballots submitted and not withdrawn in support of or in opposition to the proposed assessment will be tabulated. No 3 assessment will be imposed if there is a majority protest. A majority protest exists if, upon the conclusion of the hearing, ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessment. Tabulation of the assessment ballots is weighted according to the financial obligation of each affected property. The City Clerk's office will tally the votes and present results at the November 14, 2006 Council Meeting. Previous Council Actions On Julv 11, 2006, the City Council accepted petitions and set a public hearing for the purpose of determining whether public convenience and necessity require the installation of street lighting and declare its intention to install street lighting. BudqetlFinancial Impact The total estimated cost for this project is $444,000 and includes engineering design, construction, construction management and administrative costs such as staff time for public notifications, advertisements, project management, invoicing, and bond administration. The estimated breakdown of costs is as follows: Estimated property owner assessments Estimated City contributions Total project estimate $220,000 $224,000 $444,000 4 Presently, there are no funds budgeted for this assessment. Once the results of the balloting are known, staff will return to Council with funding recommendations for the City's contribution of $224,000. The remaining total costs for the project will be paid through property owner assessments and held in Agency Fund - Street Light Fund account number 801.201181. Prepared by: Allan Sheth, Civil Engineering Associate Approved: Forwarded to Council: Craig Perkins Director, Env' onmental and Public Works Management Department 5