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SR 10-15-2019 9A City Council Report City Council Meeting: October 15, 2019 Agenda Item: 9.A 1 of 3 To: Mayor and City Council From: Susan Cline, Director, Public Works, Engineering and Street Services Subject: Public Hearing for Proposed Streetlighting Assessment District on 9th Street Recommended Action Staff recommends that the City Council: 1. Hold a public hearing and receive public comment regarding the proposed streetlight assessment district on 9th Street between Marguerita Avenue and Alta Avenue, in conformance with Proposition 218, authorized by State law under the Municipal Improvement Act of 1911; 2. Close the public comment portion of the hearing and direct the City Clerk to accept the ballots submitted and tabulate the vote for the proposed district; and 3. Direct staff to prepare a resolution certifying the election results for the proposed district, to be adopted at the November 12, 2019 council meeting. Summary The City owns and maintains a network of streetlights along a vast majority of streets within its boundaries. Residential roads can be furnished with streetlights by way of an assessment district. The creation of assessment districts is initiated by petition of the residents and/or property owners in accordance with Santa Monica Municipal Code 7.04.860 and Proposition 218, the “Right to Vote on Taxes Act,” which is authorized by state law under the Municipal Improvement Act of 1911. The City received a successful petition containing signatures of 60% of the eligible voters from residents on 9th Street between Marguerita Avenue and Alta Avenue. The petition was accepted and a resolution of intent was approved by City Council on July 23, 2019. Staff recommends the City Council hold a public hearing regarding the proposed assessment district, direct the City Clerk to tabulate the received ballots, and direct staff to prepare a resolution certifying the election results for the proposed district, to be adopted at the November 12, 2019 council meeting. Discussion 2 of 3 In accordance with Proposition 218 and Santa Monica Municipal Code 7.04.860, “whenever the occupants of 60% of the residential units i n a given area petition the City Council to institute proceedings for residential streetlighting improvements, the City Council shall institute proceedings under the Improvement Act of 1911 to provide residential streetlighting to such area.” In July 2019, the City Council accepted a petition for the formation of a streetlighting assessment district on 9th Street between Marguerita Avenue and Alta Avenue, approved the Preliminary Engineer’s Report, and approved the resolution of intent to set the public hearing for October 15, 2019. Notices were mailed to property owners along with a ballot for the purpose of voting for or against the assessment. Estimated maximum assessment amounts, based on the Preliminary Engineer’s Report, were included with each mailed packet. At the public hearing, the City Council will hear any objections and protests to the proposed assessment. Completed ballots from property owners must be received by the City Clerk prior to the close of the public hearing. Following the public hearing, ballots submitted in support of and in opposition to the proposed assessment district will be tabulated. Tabulation of the assessment ballots will be weighted according to the proportional financial obligation of the affected property. No assessment will be imposed if there is a majority protest. A majority protest exists if the weighted ballots submitted in opposition to the assessment exceed the weighted ballots submitted in favor of the assessment. The City Clerk’s office will tabulate the ballots and present the results at the November 12, 2019 council meeting. At the November 12, 2019 meeting, Council would accept the certified results of the district election as tabulated by the City Clerk. Should the results be in favor of the assessment district, staff would begin a formal bidding process to select a contractor to furnish and install new streetlights and return to Council to award a construction contract. Past Council Actions 07/23/19 (Attachment A) Approved the resolution of intent and set a public hearing for the October 15, 2019 meeting. 3 of 3 Financial Impacts and Budget Actions 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 FY 2019-20 Capital Improvement Program budget in account C0106970.689000. Over time, the City anticipates recapturing up to 50% of project costs from homeowner assessments. 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. July 23, 2019 Staff Report B. October 15, 2019 Staff Report 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 City Council Report City Council Meeting: October 15, 2019 Agenda Item: 1 of 3 To: Mayor and City Council From: Susan Cline, Director, Public Works, Civil Engineering Subject: Public Hearing for Proposed Streetlighting Assessment District on 9th Street Recommended Action Staff recommends that the City Council: 1. Hold a public hearing and receive public comment regarding the proposed streetlight assessment district on 9th Street between Marguerita Avenue and Alta Avenue, in conformance with Proposition 218, authorized by State law under the Municipal Improvement Act of 1911; 2. Close the public comment portion of the hearing and direct the City Clerk to accept the ballots submitted and tabulate the vote for the proposed district; and 3. Continue the hearing during the November 12, 2019 council meeting for adoption of the resolution to certify the results for the district. Summary The creation of assessment districts for the 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 and Proposition 218, the “Right to Vote on Taxes Act,” which is authorized by state law under the Municipal Improvement Act of 1911. The City received a successful petition containing signatures of 60% of the eligible voters from residents on 9th Street between Marguerita Avenue and Alta Avenue. The petition was accepted and a resolution of intent was approved by City Council on July 23, 2019. Staff recommends the City Council hold a public hearing regarding the proposed assessment district, direct the City Clerk to tabulate the received ballots, and continue the hearing during the November 12, 2019 Council meeting for adoption of a resolution to certify the results of the district election. Discussion In accordance with Proposition 218 and Santa Monica Municipal Code 7.04.860, “whenever the occupants of 60% of the residential units in a given area petition the City 2 of 3 Council to institute proceedings for residential streetlighting improvements, the City Council shall institute proceedings under the Improvement Act of 1911 to provide residential streetlighting to such area.” In July 2019, the City Council accepted a petition for the formation of a streetlighting assessment district on 9th Street between Marguerita Avenue and Alta Avenue, approved the Preliminary Engineer’s Report, and approved the resolution of intent to set the public hearing for October 15, 2019. Notices were mailed to property owners along with a ballot for the purpose of voting for or against the assessment. Estimated maximum assessment amounts, based on the Preliminary Engineer’s Report, were included with each mailed packet. At the public hearing, the City Council will hear any objections and protests to the proposed assessment. Completed ballots from property owners must be received by the City Clerk prior to the close of the public hearing. Following the public hearing, ballots submitted in support of and in opposition to the proposed assessment district will be tabulated. Tabulation of the assessment ballots will be weighted according to the proportional financial obligation of the affected property. No assessment will be imposed if there is a majority protest. A majority protest exists if the weighted ballots submitted in opposition to the assessment exceed the weighted ballots submitted in favor of the assessment. The City Clerk’s office will tabulate the ballots and present the results at the November 12, 2019 council meeting. At the continued hearing during the November 12, 2019 meeting, Council would accept the certified results of the district election as tabulated by the City Clerk. Should the results be in favor of the assessment district, staff would begin a formal bidding process to select a contractor to furnish and install new streetlights and return to Council to award a construction contract. Past Council Actions 07/23/19 (Attachment A) Approved the resolution of intent and set a public hearing for the October 15, 2019 meeting. Financial Impacts and Budget Actions 3 of 3 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 FY 2019-20 Capital Improvement Program budget in account C0106970.689000. Over time, the City anticipates recapturing up to 50% of project costs from homeowner assessments. 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. July 23, 2019 Staff Report