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SR 07-23-2019 3C City Council Report City Council Meeting: July 23, 2019 Agenda Item: 3.C 1 of 3 To: Mayor and City Council From: Susan Cline, Director, Public Works, Civil Engineering Subject: Accept Streetlighting Assessment Petition and Set a Public Hearing for the Formation of a Streetlighting Assessment District on 9th Street Between Marguerita Avenue and Alta Avenue Recommended Action Staff recommends that the City Council: 1. Accept the signed petition for the assessment district; 2. Approve the Preliminary Engineer’s Report for the assessment district; 3. Approve the Resolution of Intent, setting a public hearing on October 15, 2019 for the formation of a streetlighting assessment district on 9 th Street between Marguerita Avenue and Alta Avenue; and 4. Authorize the City’s 50% contribution to the assessment in the event that the assessment district is formed after counting ballots. Summary The creation of assessment districts for installation of new streetlights in residential areas is initiated by petition of the residents and/or property owners in accordance with Santa Monica Municipal Code 7.04.860. The City received a successful petition containing signatures of 60% of the eligible voters from residents on 9 th Street between Marguerita Avenue and Alta Avenue. Staff recommends the City Council accept the petition (Attachment A), approve the Preliminary Engineer’s Report (Attachment B), adopt the Resolution of Intent for the formation of the streetlighting assessment district (Attachment C), and set a public hearing for October 15, 2019. The estimated cost for this project is $158,500, which includes the estimated property owner assessment of $79,250 and the City’s estimated contribution of $79,250. Discussion The process of creating streetlighting assessment districts and imposing assessments begins with a petition of the residents and/or property owners in accordance with SMMC 2 of 3 7.04.860 and must comply with Proposition 218, the “Right to Vote on Taxes Act,” which is authorized by State law under the Municipal Improvement Act of 1911. On January 17, 2018, the City received a successful petition from residents on 9th Street between Marguerita Avenue and Alta Avenue. The petition was verified by the City’s Rent Control Board and is available for public review at the Public Works permit counter at City Hall. Based on the Preliminary Engineer’s Report, the estimated project cost to install streetlights along 9th Street between Marguerita Avenue and Alta Avenue is $158,500. The property owners’ contribution (the assessment) would be approximately half of the project cost, and the other half would be paid for by the City from the existing Capital Improvement Program project for streetlighting assessment districts (project # C0697). Staff recommends City Council accept the petition, approve the Preliminary Engineer’s Report, adopt the Resolution of Intent for the formation of the streetlighting assessment district, and set a public hearing on October 15, 2019. Upon the adoption of the Resolution of Intent, the City would mail notices of intent to form the assessment district and hold a public hearing to affected property owners 45 days in advance of the public hearing, in accordance with the notice and protest procedures under Proposition 218. In addition to the notices, the City would provide affected property owners a ballot with the option to vote for or against the assessment. A list of properties within the proposed assessment district and the assessment district map would be available for review at the time of the public hearing. Eligible property owners may return their ballots by mail or deliver them to the Office of the City Clerk prior to the close of the public hearing. At the hearing, the City Council would hear all public comments on the proposed assessment. At the conclusion of the public hearing, the City would tabulate the assessment ballots submitted, and not withdrawn, in support of, or in opposition to, the proposed assessment. Tabulation of the assessment ballots would be weighted according to the proportional financial obligation of the affected property. No assessment would be imposed if there is a majority of votes opposing the assessment. 3 of 3 Following adoption of the Resolution of Intent and before the public hearing, the City would notify property owners, residents, and other interested parties of a public meeting. At the public meeting, staff would present additional streetlight construction and assessment information. The presentation would include diagrams showing the planned locations of the streetlights and information on the standard ornamental style poles approved for residential streets. Financial Impact and Budget Action There is no immediate financial impact or budget action necessary as a result of the recommended action. The estimated cost for this project is $158,500, which includes engineering design, construction, construction management, and administrative costs. Funds in the amount of $158,500 are available in the FY2019 -20 Capital Improvement Program budget in account C0106970.689000. Over time, the City anticipates recapturing up to 50% of project costs from homeowner assessm ents. Once the results of the balloting are known, staff will return to Council with financial action recommendations for the City’s contribution. Prepared By: Robert Zak, Civil Engineer Approved Forwarded to Council Attachments: A. Petition for Street Lighting Assessment District B. Preliminary Engineer's Report C. PW - Reso - Street Light Assessment District - 07.23.2019 April 2019 PRELIMINARY ENGINEER’S REPORT - STREET LIGHT ASSESSMENT DISTRICT 9TH STREET, MARGUERITA AVENUE TO ALTA AVENUE PREPARED UNDER THE PROVISIONS OF THE IMPROVEMENT ACT OF 1911 CITY OF SANTA MONICA In Conjunction with City of Santa Monica Street Lighting Assessment District Preliminary Engineer's Report April 2019 | 1 / TABLE OF CONTENTS Page Introduction and Certifications ........................................................................................... 2 PART I Plans and Specifications ................................................................................... 5 PART II Cost Estimate ................................................................................................... 6 PART III Assessment Roll and Method of Assessment Spread ...................................... 7 Exhibit 1 - Method and Formula of Assessment Spread..................................9 PART IV Annual Administrative Assessment .................................................................14 PART V Diagram of Assessment District ......................................................................15 PART VI Description of Facilities ...................................................................................18 APPENDIX A. LDB Cost Estimate City of Santa Monica Street Lighting Assessment District Preliminary Engineer's Report April 2019 | 2 / INTRODUCTION AND CERTIFICATIONS AGENCY: CITY OF SANTA MONICA PROJECT: STREET LIGHTING ASSESSMENT DISTRICT TO: CITY COUNCIL ENGINEER'S "REPORT" PURSUANT TO THE PROVISIONS OF SECTIONS 5000 TO 5026 OF THE STREETS AND HIGHWAYS CODE The purpose of this Assessment District is to provide financing to install street lights in the area generally bounded by 9th Street, Marguerita Avenue to Alta Avenue. The proposed Street Light improvements will provide lighting along the street in the public right -of-way and will enhance safety, security and protection of property. The construction of these improvements will conform to existing City of Santa Monica standards. By virtue of such improvements, the proposed improvements are of special and direct benefit to these properties. The "Improvement Act of 1911", being Division 7 of said Code, and the Resolution of Intention, adopted by the City Council of the CITY OF SANTA MONICA, State of California, in connection with the proceedings for Street Lighting Assessment District described herein (hereinafter referred to as the “Assessment District”), I, Jeffrey M. Cooper, P.E., a Registered Professional Engineer of NV5, and an authorized representative of PENCO Engineering, Inc., the duly appointed Engineer of Work, herewith submits the “Report” for the Assessment District, consisting of six (6) parts as stated below. PART I This part contains the plans and specifications which describe the general nature, location and extent for the proposed improvements to be constructed, and are filed herewith and made a part hereof. Said plans and specifications are on file in the Office of the Superintendent of Streets. PART II This part contains an estimate of the cost of the proposed improvements, including capitalized interest, if any, incidental costs and expenses in connection therewith as set forth herein and attached hereto. City of Santa Monica Street Lighting Assessment District Preliminary Engineer's Report April 2019 | 3 / PART III This part contains a proposed assessment of the total amount of the costs and expenses of the proposed improvements upon the several subdivisions of land within the Assessment District, in proportion to the special benefits to be received by such subdivisions from said improv ements, which is set forth upon the assessment roll filed herewith and made a part hereof. PART IV This part contains the proposed maximum annual administrative assessment to be levied upon each subdivision or parcel of land within the Assessment District to pay the costs incurred by the CITY OF SANTA MONICA, and not otherwise reimbursed, resulting from the administration and collection of assessments, from the administration and registration of any associated bonds and reserve or other related funds, or both. PART V This part contains a map showing the boundaries of the Assessment District, and a diagram showing the Assessment District, the boundaries and the dimensions of the subdivisions of land within said Assessment District, as the same existed at the time of the passage of the Resolution of Intention. The Boundary Map and Assessment Diagram are filed herewith and made a part hereof, and part of the assessment. PART VI This part shall consist of the following information: A. Description of facilities This report is submitted on ______________ PENCO ENGINEERING, INC. / NV5 _____________________ April 5, 2019 JEFFREY M. COOPER, P.E. DATE R.C.E. No. 31572 ENGINEER OF WORK CITY OF SANTA MONICA STATE OF CALIFORNIA City of Santa Monica Street Lighting Assessment District Preliminary Engineer's Report April 2019 | 4 / Preliminary approval by the CITY COUNCIL of the CITY OF SANTA MONICA, CALIFORNIA, on the ____ day of ____, 2019. ___________________________ CITY CLERK CITY OF SANTA MONICA STATE OF CALIFORNIA Final approval by the CITY COUNCIL of the CITY OF SANTA MONICA, CALIFORNIA, on the _____ day of ____, 2019. ___________________________ CITY CLERK CITY OF SANTA MONICA STATE OF CALIFORNIA City of Santa Monica Street Lighting Assessment District Preliminary Engineer's Report April 2019 | 5 / Part I Plans and Specifications The plans and specifications to construct the proposed street light improvements, and any ancillary improvements thereof, for the area generally described as Street Lighting Assessment District bounded by 9th Street, Marguerita Avenue to Alta Avenue, describe the general nature, location and extent of the improvements for Assessment District are referenced herein and incorporated as if attached and a part of this Report. Said Plans and Specifications for the improvements are shown on the assessment diagram. Final plans and specifications will be prepared by the City and will be on file in the office of the Superintendent of Streets (City Engineer) when completed. City of Santa Monica Street Lighting Assessment District Preliminary Engineer's Report April 2019 | 6 / Part II Cost Estimate City of Santa Monica Street Lighting Assessment District Preliminary Engineer's Report April 2019 | 7 / Part III Assessment Roll and Method of Assessment Spread WHEREAS, on _____________, 2019 the City Council of the CITY OF SANTA MONICA, State of California, did, pursuant to the provisions of the Improvement Act of 1911, being Division 7 of the Streets and Highways Code, of the State of California, adopt its Resolution of Intention, for the installation and construction of certain public improvements, together with appurtenances and appurtenant work in connection therewith (the “improvements”), in a special assessment district known and designated as STREET LIGHT ASSESSMENT DISTRICT, 9th STREET, MARGUERITA AVENUE TO ALTA AVENUE (hereinafter referred to as the "Assessment District"); and WHEREAS, said Resolution of Intention, as required by Law, did direct the Engineer of Work to make and file a "Report", consisting of the following as required by the Act: a. Plans and Specifications b. A general description of works or appliances already installed and any other property necessary or convenient for the operation of the improvement, if the works, appliances, or property are to be acquired as part of the improvement. c. Cost Estimates d. Assessment Diagram showing the Assessment District and the subdivisions of land therein; e. A proposed assessment of the costs and expenses of the works of improvement levied upon the parcels within the boundaries of the Assessment District; f. The proposed maximum annual assessment to be levied upon each subdivision or parcel of land within the Assessment District to pay the costs incurred by the City and not otherwise reimbursed resulting from the administration and collection of assessments or from the administration and registration of any associated bonds and reserve or other related funds. For particulars, reference is made to the Resolution of Intention as previou sly adopted. NOW, THEREFORE, I, JEFFREY M. COOPER, P.E. of NV5, an authorized representative of PENCO Engineering, Inc., pursuant to Article XIIID of the California Constitution and the “Improvement Act of 1911", do hereby submit the following: 1. Pursuant to the provisions of Law and the Resolution of Intention, I have assessed the costs and expenses of the works of improvement to be performed in the Assessment District upon the parcels of land in the Assessment District specially benefited thereby in direct proportion and relation to the special benefits to be received by each of said parcels. For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is attached hereto and incorporated herein. 2. As required by law, a Diagram is hereto attached, showing the Assessment District, as well as the boundaries and dimensions of the respective parcels and subdivisions of land within said District as the same existed at the time of the passage of said Resolution of Intention, each of City of Santa Monica Street Lighting Assessment District Preliminary Engineer's Report April 2019 | 8 / which subdivisions of land or parcels or lots respectively have been given a separate number upon said Diagram and in said Assessment Roll. 3. The subdivisions and parcels of land the numbers therein as shown on the respective Assessment Diagram as attached hereto correspond with the numbers as appearing on the Assessment Roll as contained herein. 4. The Method of Spread of Assessment is as set forth in the exhibit identified as Part III (Exhibit I), which is attached hereto, referenced and so incorporated. City of Santa Monica Street Lighting Assessment District Preliminary Engineer's Report April 2019 | 9 / Exhibit 1 Method and Formula of Assessment Spread Since the improvements are to be funded by the levying of assessments, the "Improvement Act of 1911" and Article XIIID of the State Constitution require that assessments must be based on the special benefit that the properties receive from the works of improvement. In addition, Section 4 of Article XIIID of the State Constitution requires that a parcel's assessment may not exceed the reasonable cost of the proportional special benefit conferred on that parcel. Section 4 provides that only special benefits are assessable and the local agency levying the assessment must separate the general benefits from the special benefits. It also provides that parcels within a district that are owned or used by any public agency, the State of California, or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those pu blicly owned parcels in fact receive no special benefit. Neither the Act nor the State Constitution specifies the method or formula that should be used to apportion the costs to properties in any special assessment district proceedings. The responsibility for recommending an apportionment of the costs to properties which specially benefit from the improvements rests with the Assessment Engineer, who has been selected by the City for the purpose of making an analysis of the facts and determining the correct apportionment of the assessment obligation. In order to apportion the assessments to each parcel in direct proportion with the special benefit which it will receive from the improvements, an analysis has been completed and is used as the basis for apportioning costs to each property within the Assessment District. Based upon an analysis of the special benefit to be received by each parcel from the construction of the works of improvement, the Assessment Engineer recommends the apportionment of costs as outlined below. The final authority and action rests with the City Council after hearing all testimony and evidence presented at a public hearing, and tabulating the assessment ballots previously mailed to all record owners of property within the Assessment District. Upon the conclusion of the public hearing, the City Council must make the final determination whether or not the assessment spread has been made in direct proportion to the special benefits received by each parcel within the Assessment District. Ballot tabulation will be done at that time and, if a majority of the returned ballots weighted by assessment amount are not in opposition to the Assessment District, the City Council may form the Assessment District. The following sections set forth the methodology used to apportion the costs of the improvements to each parcel. SPECIAL BENEFITS In further making the analysis, it is necessary that the properties receive a special benefit distinguished from general benefits conferred on real property loca ted in the District or to the public at large. City of Santa Monica Street Lighting Assessment District Preliminary Engineer's Report April 2019 | 10 / The purpose of this Assessment District is to provide the financing of street lights in the affected portions of streets within the District. These facilities service the properties within the Assessment District. The proposed street light improvements will provide a special benefit to the parcels connected to and adjacent to, or in near proximity of, the facilities as follows: The primary benefits of street lighting are for the convenience, safety, security and protection of property. 1. Improvement to traffic circulation and reduction in night time accidents and attendant human misery and decrease in personal property loss. 2. The deterrence of crime and the aid to police protection. 3. Increased nighttime safety on roads and highways. 4. The improved ability of pedestrians and motorists to see, which helps people safely find their way. 5. Improved ingress and egress to lots and parcels. 6. Reduction in vandalism and other criminal acts, and reduced damage to improvements. 7. The enhancement to the value of property which results from the foregoing benefits. By virtue of such special benefits, the proposed improvements will provide a hig her level of service, increase the desirability of the properties and will specifically enhance the values of the properties within the Assessment District. Therefore, the proposed improvements are of direct and special benefit to these properties. City of Santa Monica Street Lighting Assessment District Preliminary Engineer's Report April 2019 | 11 / GENERAL BENEFITS Section 4 of Article XIIID requires that the general benefits imparted by the street lighting project be separated from the special benefits and that only the special benefit portion of the costs of the project be assessed against those parcels which are identified as receiving special benefits. Separating the general from the special benefits requires an examination of the facts and circumstances of the project and the property being assessed. In this particular assessment district, the street lighting improvements are on a local and collector street. None of the roadways are designated as an arterial, a major arterial or a scenic corridor in the City's General Plan. Furthermore, the City has an established network of arterial streets whi ch appear to function as intended to provide for the movement of traffic around and through the community at large without the need to utilize local or collector streets for such purposes. Under these circumstances, any use of the streets within the assessment district as ''through" streets is incidental. The properties situated within the proposed assessment district are used exclusively as residential. Under this circumstance, the impacts, both visual and safety, are largely isolated to those properties (and the persons who inhabit them) which front on these local streets, with only incidental impacts on those who visit homes within the assessment district or who pass through the assessment district on trips originating outside the boundary and having a destination outside the boundary. Based on these facts and circumstances, any general benefits to the property within the Assessment District in general, to the surrounding community and to the public at large from the street light project on the local streets and alleys, such as to the general public visiting in cars, on bikes or on foot, are incidental and do not exceed five percent (5%) of the estimated project costs. This general benefit portion of the cost is more than offset by the approximate 50% per cent City contribution. Therefore, $79,250 of the $158,500 total construction cost and incidental expenses represents the local and special benefits to the parcels within the Assessment District. Because only the net amount of $79,250 is apportioned to the parcels within the District, no parcel is assessed more than its proportional share of the special benefits from the improvements. METHODOLOGY Based upon the findings described above, the special benefit received by the properties within the boundaries of the Assessment District is installation of a street light system resulting in additional safety, enhanced reliability, and improved aesthetics to the adjacent properties. Based on these conditions, it is our conclusion that the improvements specially benefit all assessed properties in the Assessment District. City of Santa Monica Street Lighting Assessment District Preliminary Engineer's Report April 2019 | 12 / To establish the benefit to the individual parcels within the Assessment District, the highest and best use of each property is considered. For example, a vacant property is considered developed to its highest potential and connected to the system. The more a property is developed, the more it benefits from the proposed improvements. All properties within this Assessment District are zoned residential . There is a direct correlation between the size of a property and the extent to which a property may develop. Because parcel size is one of the main limiting factors for what can be built on a property, or the extent the property is developed, the size of each parcel is used as the base unit for measuring benefit. ASSESSMENT APPORTIONMENT Each parcel will be apportioned its fair share of the construction costs based on the square footage calculated for each property. Incidental Expenses and Financial Costs have been assessed to the entire Assessment District on a pro- rata basis relative to the total construction cost allocations. The individual assessment calculations are provided in Appendix A. In conclusion, it is my opinion that the assessments for the referenced Assessment District have been spread in direct accordance with the special benefits that each parcel receives from the works of improvement. Dated: ________________ NV5 / PENCO ENGINEERING, INC. _____________________ April 5, 2019 JEFFREY M. COOPER, P.E. DATE R.C.E. No. 31572 ENGINEER OF WORK CITY OF SANTA MONICA STATE OF CALIFORNIA City of Santa Monica Street Lighting Assessment District Preliminary Engineer's Report April 2019 | 13 / I, _____________________________ as CITY CLERK of the CITY OF SANTA MONICA, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was filed in my office on the ___day of ____, 2019. ___________________________ CITY CLERK CITY OF SANTA MONICA STATE OF CALIFORNIA I, _____________________________ as CITY CLERK of the CITY OF SANTA MONICA, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was preliminarily approved by the City Council of the CITY OF SANTA MONICA, CALIFORNIA, on _____ day of ____, 2019. ___________________________ CITY CLERK CITY OF SANTA MONICA STATE OF CALIFORNIA I, _____________________________ as CITY CLERK of the CITY OF SANTA MONICA, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was approved and confirmed by the City Council of the CITY OF SANTA MONICA, CALIFORNIA, on _____ day of ____, 2019. ___________________________ CITY CLERK CITY OF SANTA MONICA STATE OF CALIFORNIA I, _____________________________ as SUPERINTENDENT OF STREETS of the CITY OF SANTA MONICA, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was recorded in my office on _____ day of ____, 2019. ___________________________ SUPERINTENDENT OF STREETS CITY OF SANTA MONICA STATE OF CALIFORNIA City of Santa Monica Street Lighting Assessment District Preliminary Engineer's Report April 2019 | 14 / Part IV Annual Administrative Assessment A proposed maximum annual administrative assessment shall be levied on each parcel of land and subdivision of land within the Assessment District to pay for necessary costs and expenses incurred by the CITY OF SANTA MONICA, and not otherwise reimbursed, resulting from the administration and collection of assessments, from the administration or registration of any bonds and reserve or other related funds, or both. The maximum assessment shall not exceed fifty dollars ($50) per parcel per year, subject to an annual increase based on the Consumer Price Index (CPI), during the preceding year ending in January, for all Urban Consumers in the Los Angeles, Riverside, and Orange County areas. The exact amount of the administration charge will be established each year by the Superintendent of Streets. The annual administrative assessment will be collected in the same manner and in the same installments as the assessment levied to pay for the cost of the works of improvement. City of Santa Monica Street Lighting Assessment District Preliminary Engineer's Report April 2019 | 15 / Part V Diagram of Assessment A reduced copy of the Assessment Diagram is attached hereto. Full-sized copies of the Boundary Map and Assessment Diagram are on file in the Office of the City Clerk, of the City of Santa Monica. As required by the Act, the Assessment Diagram shows the exterior boundaries of the Assessment District and the assessment number assigned to each parcel of land corresponding to its number as it appears in the Appendix – Assessment Calculations. The Assessor's Parcel Number is also shown for each parcel as they existed at the time of the passage of the Resolution of Intention and reference is hereby made to the Assessor's Parcel Maps of the County of Los Angeles for the boundaries and dimensions of each parcel of land.                                                                                                        City of Santa Monica Street Lighting Assessment District Preliminary Engineer's Report April 2019 | 16  /  APRIL 2019      City of Santa Monica Street Lighting Assessment District Preliminary Engineer's Report April 2019 | 17 / City of Santa Monica Street Lighting Assessment District Preliminary Engineer's Report April 2019 | 18 / Part VI Description of Facilities On the following page is a preliminary plan of the facilities. City of Santa Monica Street Lighting Assessment District Preliminary Engineer's Report April 2019 | 19 / / APPENDIX / APPENDIX “A” PENCO Engineering, Inc. 16842 Von Karman Avenue, Suite 150 Irvine, CA 92606 (949) 753-8111 www.pencoeng.com Gary Solsona, PE Project Manager PENCO Engineering, Inc. O: (949) 777-1580 M: (909) 234-7857 gsolsona@pencoeng.com Jeffrey M. Cooper, PE Director of Municipal Services NV5 O: (949) 585-0477 Jeff.Cooper@nv5.com In Conjunction with City Council Meeting: July 23, 2019 Santa Monica, California RESOLUTION NUMBER ____________(CCS) (CITY COUNCIL SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA, CALIFORNIA, DECLARING ITS INTENTION TO TAKE PROCEEDING PURSUANT TO THE MUNICIPAL IMPROVEMENT ACT OF 1911 AND MAKE CERTAIN FINDINGS AND DETERMINATIONS IN CONNECTION THEREWITH, ALL RELATING TO THE FORMATION OF A STREETLIGHT ASSESSMENT DISTRICT FOR 9TH STREET, MARGUERITA AVENUE TO ALTA AVENUE WHEREAS, the City Council of the City of Santa Monica (the “City”) desires to provide certain property located in the City with street lights as further described in Section 3 hereof (the “Improvements”) and to order the formation of an Assessment District to pay the costs thereof under and pursuant to the provisions of the Municipal Improvement Act of 1911 (the “1911 Act”); and WHEREAS, the proposed Assessment District, if it is formed, is to be known and designated as the Streetlight Assessment District For 9th Street, Marguerita Avenue to Alta Avenue, in the City of Santa Monica, California (the “Assessment District”); and WHEREAS, the proposed boundaries of the Assessment District are shown on a map which identifies by a boundary line the extent of the territory proposed to be included in the Assessment District, which map is designated “Boundary of Proposed Assessment District 9th Street, Marguerita Avenue to Alta Avenue” (the “Map”), which Map is on file in the office of the City Clerk; and WHEREAS, the City Council has been presented with petitions signed by the occupants of 60% of the residential units located within the boundaries of the proposed Assessment District requesting the formation of the Assessment District to finance the Improvements; and WHEREAS, it appears to the City Council that an Assessment District should be formed to finance the installation of said Improvements under the provisions of the 1911 Act; and WHEREAS, the City Engineer, with the assistance of PENCO Engineering, Inc., is competent to make and file with the City Clerk the report with regard to the Improvements, which report is required by the 1911 Act to be made and filed; and WHEREAS, the installation of street lights is categorically exempt from the California Environmental Quality Act (Public Resources Code Section 21000 et seq.) (“CEQA”) and its implementing guidelines (14 California Code of Regulations Section 15000 et seq.) (the “Guidelines”) pursuant to Sect ion 15303 and 15311 of the Guidelines; and WHEREAS, before ordering the Improvements, the City Council is required, under the 1911 Act, to adopt a resolution declaring its intention to do so; and WHEREAS, a public hearing shall be held on October 15, 2019, at 5:30 p.m., at the Council Chambers of City Hall located at 1685 Main Street, Santa Monica 90401, at which time any and all persons having any objections to the proposed installation of the Improvements may appear before City Council to protest the installation of the Improvements and the formation of the Assessment District. NOW, THEREFORE, THE COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Recitals. The above recitals, and each of them, are true and correct. SECTION 2. Approval of Map. The Map is hereby approved, adopted and declared to describe the proposed boundaries of the Assessment District. The City Clerk is hereby directed to endorse her certificate on the original of the Map evidencing the date and adoption of this resolution and to file said Map in her office, and to file a copy of said Map so endorsed with the County Recorder of Los Angeles, California within fifteen (15) days after the adoption of the resolution fixing the time and place of hearing on the formation and extent of the Assessment District. SECTION 3. Nature of Improvements. The Improvements generally include the installation of street lights and ancillary improvements in the area generally bounded by 9th Street, Marguerita Avenue to Alta Avenue and appurtenant work therewith as shown on the Map. The Improvements will be designed by PENCO Engineering, Inc. (“Penco”). The City will use a contractor to construct the improvements, and the City will inspect the work to ensure conformance to City standards and specifications where applicable. Once installed, the Improvements will become the property and responsibility of the City. SECTION 4. Public Interest and Necessity. The City Council hereby finds and declares that the public interest and necessity require the Improvements, and the Improvements will be of direct and special benefit to the properties and land within the Assessment District. The City Council hereby declares its intention to order the street lights and cause the installation of the street lights, and to make the expenses thereof chargeable upon the area included within the Assessment District, and to form Assessment District. SECTION 5. Intention to Levy Assessment. The City Council further declares its intention to levy a special assessment upon the land within the Assessment District in accordance with the respective special and direct benefit to be received by each parcel of land from the Improvements. SECTION 6. Initiation Proceedings. The City Council finds and determines that before ordering the acquisition of the Improvements it shall take proceedings pursuant to the 1911 Act and pursuant to Government Code section 53753 (“Proposition 218”). SECTION 7. Assessment Engineer Report. PENCO Engineering, Inc. is appointed the Assessment Engineer. The Assessment Engineer is hereby authorized and directed to make and file with the City Clerk a written report with regard to the 1911 Act (the “Report”) and shall contain the following: (a) Plans and specifications for the Improvements; (b) A general description of works or appliances already installed and any other property necessary or convenient for the operation of the Improvements, if the works, appliances or property are to be acquired as part of the Improvements; (c) An estimate of the cost of the Improvements, and the cost of land, rights of way, easements, and incidental expenses in connection with the Improvements, as applicable; (d) A diagram showing the exterior boundaries of the Assessment District and the lines and dimensions of each parcel of land within the Assessment District as they existed at the time of passage of this resolution (each subdivision to be given a separate number on the diagram); (e) A proposed assessment of the total amount of the cost and expenses of the proposed Improvements upon the parcels of land within the Assessment District in proportion to the estimated benefits to be received by such parcels, respectively, from the Improvements (the assessment shall refer to the parcels by their respective numbers assigned as provided in (d) above); and (f) A proposed maximum annual assessment upon each of the parcels in the Assessment District to pay costs incurred by the City and not otherwise reimbursed which result from the administration and collection of assessments or from the administration or registration of any associated bonds and reserve or other related funds. SECTION 8. Compliance with the 1911 Act. Except as specifically otherwise provided for herein, the Improvements shall be made and ordered pursuant to the provisions of the 1911 Act. SECTION 9. Exemption from CEQA. Pursuant to Section 15303 and 15311 of the Guidelines, the installation of the Improvements will have no significant effect on the environment and is categorically exempt from CEQA. The City Clerk is directed to cause a notice of exemption to be posted as required by law. SECTION 10. Inquiries. All inquiries for any and all information relating to these proceedings, including information relating to protest procedures, should be directed to: CITY OF SANTA MONICA ENGINEERING DIVISION Attention: Robert Zak 1437 4th Street, Suite 300 Santa Monica, California 90401 (310) 458-8721 SECTION 11. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: _______________________ LANE DILG CITY ATTORNEY REFERENCE: Resolution No. 11189 (CCS)