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SR-112508-9BCity Council Meeting: November 25, 2008 Agenda Item: To: Mayor and City Council From: Lee E. Swain,. Director of Public Works Subject: Georgina Avenue Street Lighting Assessment Project Recommended Action Staff recommends that the City Council hold a public hearing and adopt a resolution confirming assessment costs for the Georgina Avenue Street Lighting Assessment Project. Executive Summary The Georgina Avenue Street Lighting Assessment Project was a collaborative effort between area residents and the City to provide enhanced street lighting on Georgina Avenue from 4th Street to 7th Street. The project.constructed new ornamental style street light poles, post-top luminaries and the associated underground electrical system. Construction is complete and final assessment costs have been compiled. The final costs are lower than the original estimates: California State Law requires the City Council to hold a public hearing to hear any protests or objections td the confirmation of assessment costs. Background On July 11, 2006 the City Council accepted petitions and. set a public hearing on October 10, 2006 for the purpose of determining whether public convenience and necessity require the installation of street lighting and- declared its intention to install street lighting on 30th Street, from Pico Boulevard to Pearl Street (District "A") and Georgina Avenue, from 4th Street to 7th Street (District "B"). On October 10, 2006, City Council held a public hearing for the formation of streetlight assessment districts on 30th Street, from Pico Boulevard to Pearl Street (District "A") and Georgina Avenue, from 4th Street to 7th Street (District "B"). Ballots were received and accepted up to the end of the public hearing. On,November 14, 2006, City Council accepted the certified results of the streetlight assessment district election as tabulated by the City Clerk; approved the 1 formation of a street light assessment district on Georgina Avenue from 4tn Street to 7m Street (District "B"); and adopted Resolution 10184 (CCS) to assess property owners for the construction cost of streetlight improvements and issue bonds as security for unpaid assessments in conformance with Proposition 218. Proposed District A was not approved by voters. On November 13, 2007, City Council awarded a construction contract to Freeway Electric, Inc. (CGS 8854) in the amount of $126,500 (plus a 10% contingency amount of $12,650) for the Georgina Avenue Street Lighting Assessment Project. On September 16, 2008, City Council adopted Resolution 10342 (CCS) setting a public hearing for November 25, 2008 to confirm final assessment costs for the Georgina Avenue Street Lighting Assessment Project. Discussion The Georgina Avenue Street Lighting Assessment Project included the installation of twelve (12) ornamental Aegean concrete style streetlight poles, post-top luminaries and the associated underground electrical system consisting of conduits, wiring and pull boxes. The luminaries included internal reflectors and shields to deflect the light downward and away from homes. Construction was completed on June 11, 2008 and a Notice of Completion was filed on August 11, 2008. Confirmation of Assessment Costs At the.completion of the Georgina Avenue Street Lighting Assessment Project, property owners are assessed for the improvements based on the front footage of their property. The total project cost, including design, construction, construction management and administratioh, is $61.26 per linear foot of front footage. The assessment cost (property owner's share) is $30.63 per linear foot of front footage for residential property owners, which is $16.87 per linear foot less than the. original estimate of $47.50 per linear foot that was approved by a majority vote of the property owners at the formation of the assessment district. The assessment cost (property owner's share) per side footage for residential property owners is $12.25 per linear foot. As established by the Engineer's report, residential property owners are assessed 50% of the total project cost per lineal 2 foot based on the parcel front footage. Residential property owners whose property qualifies for side footage under Santa Monica Municipal Code Section 9.04.02.030.615 are assessed 20% of the total project cost per lineal foot based on side footage. Parcels owned by non-profit organizations, which can demonstrate that the organization receives a welfare exemption from the Los Angeles County Assessor, are exempt from this assessment. All public streets, alleys, or portions thereof, are also exempt from the assessment. This district does not have any such parcels, public streets, alleys, or portions thereof. The assessment cost is based on the project cost including design, construction, construction management and administration, minus the City's contribution. The final assessment cost is less than the original estimate provided to property owners and less than the proportionate special benefit cost of improvements for each parcel as identified in the Engineer's Report. The assessment district is depicted in Drawing Series No. 10106-A, a copy of which is on file in the Office of City Engineer. Property owners have the option of either paying for the improvements over ten years at an annual interest of 8% (in conformance with the California Streets & Highways Code, Section 10602 and Resolution No. 10184 CCS), or paying their assessment in full within 30 days after being invoiced. Owners of controlled rental units may not pass through the cost of the assessment to tenants. A public hearing to confirm the assessment of costs must be held pursuant to the .California Streets and Highways Code. All affected property owners have been notified of the public hearing date and their assessment amount through a direct mailing which was sent on October 10, 2008, at least forty-five (45) days prior to the public hearing. The notice of public hearing was advertised in the Santa Monica Daily Press by the City Clerk once a week, for two consecutive weeks, with at least-five days intervening between the first date and second date of publication. The first publication of the notice was made not less than 15 days prior to the date of the public hearing. 3 Financial Impacts & Budget Actions The total project cost, City's share and property owner's share is as follows: __ _ - - - _ Project Costs Total City's Share ' Property Project Cost ,Owner's Share Final Design Cost $4,900.00 ' $4,900.00 ' $0.00 `~` __ Final Construction Cost $130,100.00',. $57,337.60 $72,762.50 City's Construction $14,000:00 ' $14,000.00 ' $0.00 Management & Administrative Costs __ _ _ - - Total Contribution $149,000.00 ' $76,237.50 ', $72,762.50 i __ __ _ _ - The City's share of the final construction cost has been paid to the contractor from account 0010724.89000 (Street & Park Light Retrofit). Assessments paid in full by the property owners will be held in revenue account 80.201250 pending payment to the contractor's assignee. Bonds will be issued for any unpaid assessments. Bond proceeds will be paid to the contractor's assignee and the property owner(s) will remit to the bondholder over time. Prepared by: Allan Sheth, Civil Engineer Associate Lee E. Swain, Director Department of Public Works Attachment 1: Resolution Attachment 2: Drawing No. 10106-A Attachment 3: Final Assessment Costs Manager 4 Approved: Forwarded to Council: Reference Resolution No. 10365 (CCS).