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SR-111108-9ACity Council Meeting: November 11, 2008 Agenda Item: ~° To: Mayor and City Council From: Lee E. Swain, Director of Public Works Subject: Public Hearing on Proposed Street Lighting Assessment District Recommended Action Staff recommends 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 Cohstitution, on: District A - 15t" Street from Alta Avenue to Montana Avenue District B -Urban Avenue from Yorkshire Avenue to Dorchester Avenue; 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 25, 2008 Council Meeting for adoption of the resolution to certify the results. Executive Summary The residents and property owners of 15t" Street from Alta Avenue to Montana Avenue and Urban Avenue from Yorkshire Avenue to Dorchester Avenue have petitioned to initiate the formation of an assessment district for the installation of new streetlights. Notices, project information and ballots regarding the proposed assessment district were sent to affected property owners. State law requires that City Council hold a public hearing to hear any objections and protests to the proposed assessment. At the conclusion of the public hearing,. the assessment ballots submitted will be tabulated by the City Clerk. The City Clerk's office- will tally the votes and present results at the November 25, 2008 Council Meeting. An assessment district will be formed if the majority of property owners weighted according to the financial obligation vote in favor of the assessment. No budget action is required at this time. ®iscussion On September 16, 2008, 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 for two proposed street lighting 1 assessment districts. The proposed districts are: District A - 15th Street from Alta Avenue to Montana Avenue and District B -Urban Avenue from Yorkshire Avenue to Dorchester Avenue. Notices of the City's intent to form assessment districts and hold public hearings were mailed to property owners 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 assessed at the side footage rate. In accordance with past City policy, the proposed assessment allocation for streetlights is: TYPE OF PROPERTY TYPE OF FOOTAGE CITY SHARE PROPERTY SHARE Residential Front Footage 50% 50% Side Footage 80% ! 20% Non-Residential i Front Footage 20% 80% Side Footage ~ 60% 40% i After the public hearing and tabulation of the ballots, 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 coristruction is completed, or they may opt to repay the bond holder in installments over aten-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 HaII at the public hearing. 2 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 for each district will be tabulated. No 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 25, 2008 Council Meeting. Financial Impacts ~ Budget Actions No budget action is required at this time. The total estimated -cost for this project is $270,000, which includes engineering design, construction, construction management and administrative costs such as staff time for public notifications, advertisements, project management, invoicing, and bond administration. The project will be funded 50% by residents and 50% by the City. Funds in the amount of $200,000 are available at account 0027001.589000 (Streetlight Assessment District), enough to cover the estimated City's share of costs. Once the results of the balloting are known, staff will return to City Council with financial action recommendations for the City's contribution Prepared by: Allan Sheth, Civil Engineer Associate Approved: ~`~~ Lee E. Swain, Director Department of Public Works Foruvarded to Council: ~mont Ewell Manager 3