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SR-03-12-2013-9ACity Council Meeting: March 12, 2013 Agenda Item: To: Mayor and City Council From: Martin Pastucha, Director of Public Works Subject: Public Hearing and Resolution to Confirm Assessment Costs for the 15th Street Streetlight Assessment Project Recommended Action Staff recommends that the City Council hold a public hearing, receive public comment, and adopt a resolution confirming assessment costs for the 15th Street Streetlight Assessment Project. 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. 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 to the confirmation of assessment costs. Total project costs are $154,932.09 ($79,642.35 City's share and $75,289.74 property owner's share). 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. The assessment district is depicted in Drawing Series No. 10109 -A, a copy of which is on file in the Civil Engineering Division. 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. On January 22, 2013, City Council adopted Resolution 10724 (CCS) setting a public hearing for March 12, 2013 to confirm final assessment costs for the 15th Street Streetlight Assessment Project. Discussion The 15th Street Streetlight Assessment Project included the installation of ten ornamental New York style aluminum street light 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. 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 January 24, 2013 at least 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. 2 Confirmation of Assessment Costs Once the assessment costs are confirmed with the adoption of the attached resolution, the City would bill the property owners for their share of the costs based on the front footage of their property. The total project cost per front footage is $100.46 per linear foot. The property owner's share is $50.23 per linear foot of front footage for residential properties, which is $3.27 per linear foot less than the original estimate of $53.50 per linear foot that was approved at the formation of the assessment district. The final assessment cost is also 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. Property owners have the option of paying in full within 30 days after being invoiced, or through a bonding company selected by the contractor over a ten -year period at an annual interest rate of 3.25% (in conformance with the California Streets & Highways Code, Section 10602 and Resolution No. 10364 CCS). For example, if a payment schedule is elected instead of paying in full, the resident would pay a total bill of $3,068 (this calculation represents 22 of the 26 affected properties). If the resident elects to pay in full within 30 days after invoicing, the total bill would be $2,590.84. The calculated rate is based on per linear front footage multiplied by $50.23. The property owners have the option to pay off their assessments later, even if they elect a payment schedule initially. Owners of controlled rental units may not pass through the cost of the assessment to tenants. 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. 3 Financial Impacts & Budget Actions The total project cost (including design, construction, construction management and administration), City's share, and property owner's share are as follows: The City's share of the final construction cost will be paid to the contractor from account 0017001.589000 (Street & Park Light Retrofit). Assessments paid in full by the property owners will be held in revenue account 80.201259 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. The recommendation presented in this report does not have any budget or financial impacts. Prepared by: Curtis Castle, P.E., Civil Engineer Approved: Forwarded to Council: Martin Pastucha R d Gould Director of Public Works City Manager Attachment: Resolution 12 Total Property Owner's Project Cost Description Project Cost City's Share 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 The City's share of the final construction cost will be paid to the contractor from account 0017001.589000 (Street & Park Light Retrofit). Assessments paid in full by the property owners will be held in revenue account 80.201259 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. The recommendation presented in this report does not have any budget or financial impacts. Prepared by: Curtis Castle, P.E., Civil Engineer Approved: Forwarded to Council: Martin Pastucha R d Gould Director of Public Works City Manager Attachment: Resolution 12 Attachment A City Council Meeting March 12, 2013 Santa Monica, California RESOLUTION NUMBER 10736 (CCS) (CITY COUNCIL SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA APPROVING ASSESSMENT DIAGRAM DEPICTED IN CITY ENGINEER'S DRAWING SERIES NO. 10109 -A AND CONFIRMING ASSESSMENT COSTS FOR THE STREET LIGHTING IMPROVEMENTS ON 15th STREET WITHIN THE CITY OF SANTA MONICA WHEREAS, the City of Santa Monica, pursuant to Section 5882 of the Streets and Highways Code, commenced proceedings to construct street lighting improvements on 15th Street from Montana Avenue to Alta Avenue in the City of Santa Monica; and WHEREAS, the proceeding is more fully described in the Resolution Number 10364 (CCS) adopted by the City Council on November 25, 2008; Mire WHEREAS, the contract for the above described work has been fulfilled to the satisfaction of the City Engineer; and WHEREAS, the City Engineer has made an assessment to cover the sum due for the work performed and specified in the contract; and WHEREAS, the assessment has been filed with the City Clerk; and WHEREAS, the City Clerk gave the notice required by Sections 5362 and 5363 of the Streets and Highways Code; and WHEREAS, upon the day and hour fixed for hearing by the City Council, the City Council of the City of Santa Monica heard and passed upon any and all objections, appeals, and protests, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. That all objections, appeals, and protests of every kind and nature be the same are hereby overruled and denied. SECTION 2. That the diagram of property affected and benefited by the construction of the street lighting improvements are within the City of Santa Monica, and therein declared to be the property to be assessed to pay the expense of the improvements, is approved and the City Clerk is directed to execute the certificate on the diagram to the City Engineer. SECTION 3. That the City Engineer shall forthwith attach a warrant to said assessment bearing the date of this confirmation. SECTION 4. The assessment roll, warrant, and diagram shall be recorded in the Office of the City Engineer, and immediately thereafter the City Clerk shall file a copy of the assessment district in the Office of the County Recorder, and thereafter shall record in said Office of the County Recorder, a Notice of Assessment, all in the manner and form as prescribed by Section 3114 of the Streets and Highways Code of the State of California. SECTION 5. Serial bonds bearing interest at the rate 3.25% per annum shall be issued to represent each assessment of the remaining unpaid balance for thirty (30) days after the recording of the warrant. Each serial bond shall extend over a period ending nine (9) years from the second day of January next succeeding the next September 1st following its date. Property owners shall make payments on the principal of unpaid assessments and interest to the City Treasurer and the same shall be disbursed by him /her or as provided in the "Municipal Improvement Act of 1911." In accordance with Streets and Highways Code Section 6442, the City Treasurer as the cost of servicing the delinquency may retain the first two percent. (2 %) delinquency penalty authorized by such section. This bond may be redeemed by the owner or any person interested in any lot or parcel of land described herein, at any time before maturity and before commencement of proceedings for sale, upon payment to the Treasurer for the holder of this bond of the amount then unpaid on the principal sum, together with a premium of five percent (5 %) of said unmatured principal thereof with interest thereon (if not previously paid) up to the next succeeding January 2 or July 2, as the case may be, at the rate named in this bond, and all penalties accrued and unpaid. SECTION 6. The City Clerk shall certify to the adoption of`this Resolution, and thenceforth the same shall be in full force and effect. APPROVED AS TO FORM: Adopted and approved this 12th day of March, 2013. I, Sarah P. Gorman, City Clerk of the City of Santa Monica, do hereby certify that the foregoing Resolution No. 10736 (CCS) was duly adopted at a meeting of the Santa Monica City Council held on the 12th day of March, 2013, by the following vote: AYES: Councilmembers: Davis, McKeown, Winterer Mayor Pro Tern O'Day NOES: Councilmembers: None ABSENT: Councilmembers: Holbrook, Vazquez, Mayor O'Connor ATTEST: i Sari P. Gorman, City Clerk Reference Resolution No. 10736 (CCS)