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SR 07-25-2017 9A Ci ty Council Report City Council Meeting : July 25, 2017 Agenda Item: 9.A 1 of 4 To: Mayor and City Council From: Susan Cline, Director , Public Works, Civil Engineering Subject: Hold Public Hearings for Streetlight Assessment District A, District B, and District C Recommended Action Staff r ecommends that the City Council: 1. H old a pub lic hearing and receive public comment regarding each of the following street light assessment districts, in conformance with Proposition 218, authorized by State law under the Municipal Improvement Act of 1911: a. District “A” – 10 th Street between Carlyle A venue and Marguerita Avenue . b. District “B” – 25 th Street between Idaho Avenue and Washington Avenue. c. District “C” – 27 th Street between Pico Boulevard and Pearl Street. 2. Close the public hearing s and direct the City Clerk to accept the ballots submitted and tabulate the vote for each proposed district ; and 3. Continue the hearing s to the August 8 , 2017 Council Meeting for adoption of the resolution to certify the results for each district . Executive Summary S uccessful petitions to initiate the formation of str eetlight assessment district s were received from t he residents and property owners of three separate districts: 1 0 th Street between Carlyle A venue and M arguerita Avenue (District A); 25 th Street between Idaho Avenue and Washington Avenue (District B); and 27 th Street between Pico Boulevard and Pearl Street (District “C”). T he se petition s w ere accepted and resolutions of intent were approved by City Council on April 18, 2017. Notices, preliminary assessment amounts, and ballots regarding the proposed assessm ent district s were sent to the property owners of each district as required by State law , under the Municipal Improvement Act of 1911 (1911 Act). The 1911 Act also requires City Council to hold a public hearing for each proposed district to hear any object ions and protests to the proposed assessment s . At the conclusion of the three public hearing s , the City Clerk will tabulate the submitted assessment ballots of each district , tally the votes , and present the results at the August 8 , 20 17 Council Meeting. I f a majority of property 2 of 4 owners in a district vote s in favor of the ir assessment , a streetlight assessment district is formed . No assessment is imposed without majority support . No budget action is required at this time. Background New streetlight assessm ent districts in residential areas begin by petition, submitted by the residents and/or property owners in accordance with Santa Monica Municipal Code section 7.04.860 . The process for creating a new streetlight district and imposing assessments must compl y with Proposition 218 (Prop 218) and the 1911 Act . Should any of the district s pass by a majority of property owners’ vote , each of the properties within the proposed assessment district would be assessed the amount that is direct ly proportion al to the sp ecial benefit received. Under the California Constitution Article XIIID Section 4, each parcel’s assessment may not exceed the reasonable , proportional cost of the special benefit for each property. Discussion On April 18, 2017, City Council accepted pe tition s for 10 th Street between Carlyle Avenue and Marguerita Avenue (District A), 25 th Street between Idaho Avenue and Washington Avenue (District B), and 27 th Street between Pico Boulevard and Pearl Street (District C), approved the Preliminary Engineer’s Report s , and approved the resolution s of intent to set the pub lic hearing s , per Attachment A . Notices were mailed to property owners in accordance with Prop 218 , along with a ballot for the purpose of voting for or against the ir assessment. All property assess ments for street lighting are based on the Preliminary Engineer’s Report s. A separate Preliminary Engineer’s Report was prepared for each proposed district . Estimated maximum assessment amounts were included with each mailed packet. The City Clerk must receive completed ballots from property owners prior to the close of the public hearing s . At each hearing, City Council will listen to any objections and protests to the proposed assessment s . At the conclusion of each of the public hearing s , the asse ssment ballots submitted in support of and in opposition to the proposed assessment for each district would be tabulated. No assessment would be imposed if 3 of 4 there were a majority protest. A majority protest exists if, upon the conclusion of each hearing, ba llots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessment. Tabulation of the assessment ballots are weighted according to the amount of the proposed assessment on the property related to that b allot . The City C lerk’s office will tally the votes and present the results at the August 8, 2017 Council Meeting. At the continued Council meeting on August 8, 2017, Council would accept the certified results of the district election s as tabulated by the City Clerk. Shou ld the results be in favor of one or more of the assessment district s , staff would begin a formal bidding process to select a contractor to furnish and install new streetlight s and return to Council to award a construction contract. Financial Impacts and Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action . The total estimated cost is $158,500 for District A , $149,000 for District B, and $248,000 for District C. These estimates include engin eering design, construction, construction management, and administrative costs. Funds of $555,500 are available in the FY17 -18 Capital Improvement budget in a ccount C019212.589000 . The City would recapture up to 50% of actual project costs from property ow ner assessments . E ach owner would have the option of paying the total assessment, as a one -time cash payment within thirty -days of invoice after construction is complete and following the confirmation of construction costs by Council. Alternatively, each o wner will have the option to pay the total assessment amount, paid bi -annually, over a three - year payment plan at 2.5% interest , five -year payment plan at 3.5% interest , or a ten - year payment plan at 5% interest . 4 of 4 Prepared By: Angela VonSlomski, Administra tive Analyst Approved Forwarded to Council Attachments: A. April 18, 2017 Staff Report (Web link)