SR-01-22-2013-3J10
City of City Council Report
Santa Monica"
City Council Meeting: January 22, 2013
Agenda Item:J,�
To: Mayor and City Council
From: Martin Pastucha, Director of Public Works
Subject: Set a Public Hearing to Hear Objections and Protests to Final Assessment
Costs for the 15th Street Streetlight Assessment Project
Recommended Action
Staff recommends that the City Council adopt the attached resolution setting a public
hearing on March 12, 2013, to hear any protests or objections to the confirmation of
assessment costs for the installation of streetlights on 15 h Street from Montana Avenue
to Alta Avenue.
Executive Summary
The 15th Street Streetlight Assessment Project was a collaborative effort between area
residents and the City to provide enhanced street lighting on 15th Street from Montana
Avenue to Alta Avenue. The project constructed new ornamental style street light poles,
post -top luminaires, and the associated underground electrical system. Construction is
complete and final assessment costs have been compiled. California State Law
requires the City Council to hold a public hearing to hear any protests or objections to
the confirmation of assessment costs.
Background
On September 16, 2008, the City Council accepted petitions and set a public hearing on
November 11. 2008, to determine whether public convenience and necessity would
require the installation of streetlights and declare its intention to install streetlights on
15th Street from Alta Avenue to Montana Avenue (District "A ") and on Urban
Avenue from Yorkshire Avenue to Dorchester Avenue (District "B ").
On November 11, 2008, Council held a public hearing for the formation of streetlight
assessment districts on 15th Street from Alta Avenue to Montana Avenue (District "A ")
and on Urban Avenue from Yorkshire Avenue to Dorchester Avenue (District "B ").
Ballots were received and accepted up to the end of the public hearing.
On November 25, 2008, Council accepted the certified results of the streetlight
assessment district election as tabulated by the City Clerk, approved the formation of a
streetlight assessment district on 15th Street from Alta Avenue to Montana Avenue
(District "A "), and adopted Resolution 10364 (CCS) to assess property owners for the
cost of streetlight improvements and issue bonds as security for unpaid assessments in
conformance with Proposition 218.
On August 23, 2011, Council authorized a construction contract with Freeway Electric,
Inc., in an amount not to exceed $144,114 for the 15th Street Streetlight Assessment
Project.
Discussion
The 15th Street Streetlight Assessment Project included the installation of ten
ornamental New York style aluminum streetlight poles, post -top luminaires, and the
associated underground electrical system consisting of conduits, wiring, and pull boxes.
Construction was completed on May 14, 2012, and a Notice of Completion was filed on
July 10, 2012. At the completion of the project, an Engineer's report was prepared to
compile the total project costs and the final assessment costs per parcel. The total
project cost includes design, construction, construction management, and
administration.
A public hearing to confirm the assessment costs must be held pursuant to the
California Streets and Highways Code. The attached resolution sets the public hearing
on March 12, 2013. The notice of public hearing will be advertised in the Santa Monica
Daily Press and through a direct mailing to property owners. The 26 affected property
owners (2 commercial and 24 residential) will be notified of the public hearing date and
their assessment amounts at least 45 days prior to the public hearing.
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The total project cost, City's share, and property owner's share are as follows:
Project Cost Description
Total
Project Cost
City's Share
Property Owner's
Share
Final Design Cost
$
4,900.00
$ 2,518.60
$
2,381.40
Final Construction Cost
$
132,116.13
$ 67,913.88
$
64,202.25
City's Construction Management
$
17,915.96
$ 9,209.87
$
8,706.09
& Administrative Costs
Total Contribution
$
154,932.09
$ 79,642.35
$
75,289.74
Once the assessment costs are confirmed, the City bills the property owners for their
share of the costs. The property owners have the option of paying in full or through a
bonding company selected by the contractor over a ten -year period. An assessment
amount for each property owner is based on the property frontage. Commercial
properties are assessed at a higher rate than residential properties. If a payment
schedule is elected instead of paying in full, a typical bill for a 50 -foot residential front
property (represents 22 of the 26 affected properties) is approximately $2,590.84.
Payments elected to be paid over a ten -year period are at a rate equal to the prime rate,
not to exceed 8 %. The property owners have the option to pay off their assessments
later, even if they elect a payment schedule initially. Attachment B shows what the
payment would be, over a ten year period, for the majority of the property owners (22
out of the 26) in this assessment district.
Financial Impacts & Budget Actions
The recommendation presented in this report does not have any budget or financial
impact.
The City's share of the final construction cost has been paid to the contractor from the
FY2012 -13 budget in account C017001.589000. Assessments paid in full by the
property owners will be held in revenue account 80.201259 pending payment to the
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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: Curtis Castle, P.E., Civil Engineer
Approved:
Martin Pastucha
Director of Public Works
Attachment: A — Resolution
Forwarded to Council:
Rod Gould
City Manager
B — Streetlight Assessment Itemization
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Attachment B
The City of Santa Monica
Yale Street Assessments
Assessment # = $2,590.84
Amounts are paid to the bondholder July 2 and
Year Due date Year
January 2
Principal
Bond Date:
Interest Rate:
Penalty Rate:
Principal
payment
(1110 of total)
3.25%
2.00%
Number of
days
per annum
Interest
@ 3.25%
per annum
Total
due
1
June 1
2013
2,590.84
240
(A)
56.13
56.13
December 1
2013
2,590.84
259.08
180
42.10
301.19
2
June 1
2014
2,331.76
180
37.89
37.89
December 1
2014
2,331.76
259.08
180
37.89
296.97
3
June 1
2015
2,072.68
180
33.68
33.68
December 1
2015
2,072.68
259.08
180
33.68
292.76
4
June 1
2016
1,813.60
180
29.47
29.47
December 1
2016
1,813.60
259.08
180
29.47
288.55
5
June 1
2017
1,554.52
180
25.26
25.26
December 1
2017
1,554.52
259.08
180
25.26
284.34
6
June 1
2018
1,295.44
180
21.05
21,05
December 1
2018
1,295.44
259.08
180
21.05
280.13
7
June 1
2019
1,036.36
180
16.84
16.84
December 1
2019
1,036.36
259.08
180
16.84
275.92
8
June 1
2020
777.28
180
12.63
12.63
December 1
2020
777.28
259.08
180
12.63
271.71
9
June 1
2021
518.20
180
8.42
8.42
December 1
2021
518.20
259.08
180
8.42
267.50
10
June 1
2022
259.12
180
4.21
4.21
December 1
2022
259.12
259.12
180
4.21
263.33
2,590.84
477.15
3,068.00
0
3.25°/ per annum
Interest
Site:
3.25%
360 days per year
0.27%
per month
Parcel #:
0.01%
per day
Reference Resolution No.
10724 (CCS).