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HomeMy WebLinkAbout2024-078 - Resolution RESOLUTION NO. 2024-078 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, CONFIRMING THE DIAGRAMS AND THE ASSESSMENTS; APPROVING THE ANNUAL ENGINEER'S REPORTS; AND ORDERING THE LEVY AND COLLECTION OF THE ANNUAL ASSESSMENTS WITHIN STREET LIGHTING MAINTENANCE DISTRICTS NOS. 1, 2, 3, 4, 5, 6, 7 AND 8, FOR FISCAL YEAR 2024/25 WHEREAS, the City Council of the City of Rancho Cucamonga did on the 51h day of June 2024, adopt its Resolution of Intention No. 2024-049 (the "Resolution of Intention") pursuant to the Landscaping and Lighting Act of 1972, as amended (the "1972 Act"), declaring its intention to levy and collect assessments within Street Lighting Maintenance Districts Nos. 1, 2, 3, 4, 5, 6, 7 and 8 (each a "District" and collectively the "Districts") for Fiscal Year 2024/25 and giving notice of the time and place for a public hearing by the City Council on the levy of the proposed assessments within the Districts; and WHEREAS, the City Council previously received and preliminarily approved a report of the Assessment Engineer (each an "Annual Engineer's Report" and collectively the "Annual Engineer's Reports") for each District as required pursuant to Article 4 of Chapter 1 of the 1972 Act, Article XIIID of the Constitution of the State of California ("Article XIIID") and the Proposition 218 Omnibus Implementation Act (Government Code Section 53750 and following) (the "Implementation Act") (the 1972 Act, Article XIIID and the Implementation Act are referred to collectively as the "Assessment Law"); and WHEREAS, notice of such public hearing was duly and legally published in the time, form and manner as required by the Assessment Law, shown by the affidavit of Publication of said Resolution of Intention on file in the Office of the City Clerk; and WHEREAS, said City Council having duly received and considered evidence, oral and documentary, concerning the jurisdiction facts in this proceeding and concerning the necessity for the contemplated work and the benefits to be derived therefrom and said City Council having now acquired jurisdiction to order the proposed work. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, HEREBY RESOLVES, as follows: SECTION 1. This City Council hereby finds and determines that: A. Notice of the public hearing has been given and the proceedings for the consideration of the levy of the annual assessments within each District have been undertaken in accordance with the 1972 Act; and B. The annual assessments for Fiscal Year 2024/25 proposed to be levied within each District as set forth in the applicable Annual Engineer's Report do not exceed the annual assessments as previously authorized to be levied within such District, and therefore, the proposed levy of assessments for Fiscal Year 2024/25 within such District are not deemed to be "increased" over the maximum authorized annual assessments. Resolution No. 2024-078 — Page 1 of 3 SECTION 2. The final assessments and diagrams for the proceedings, as contained in the Annual Engineer's Report for each of the Districts, is hereby approved and confirmed. The assessments for the Districts contained in the Annual Engineer's Reports for Fiscal Year 2024/25 are hereby levied upon the respective lots or parcels in the Districts in the amounts as set forth in the applicable Annual Engineer's Report. SECTION 3. This City Council hereby orders that the work, as set forth and described in the Resolution of Intention, be done and made. SECTION 4. The above-referenced diagram and assessment shall be filed in the Office of the City Clerk. Said diagram and assessment, and the certified copy thereof, shall be open for public inspection. SECTION 5. The City Clerk is hereby ordered and directed to immediately file a certified copy of the diagram and assessment with the County Auditor. Such filing shall be made no later than the 3rd Monday in August 2024. SECTION 6. After the filing of the diagram and assessment, the County Auditor shall enter on the County assessment roll opposite each lot or parcel of land the amount assessed thereupon, as shown in the assessment. SECTION 7. The assessments shall be collected at the same time and in the same manner as County taxes are collected, and all laws providing for the collection and enforcement of County taxes shall apply to the collection and enforcement of the assessments. SECTION 8. The assessments as above confirmed and levied for these proceedings will provide revenue and relate to the fiscal year commencing July 1, 2024, and ending June 30, 2025. Resolution No. 2024-078— Page 2 of 3 PASSED, APPROVED, and ADOPTED this 1711 day of July, 2024. L. Denni ichae , Miyor ATTEST: ice C. Reynolds, City C rk STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss CITY OF RANCHO CUCAMONGA ) I, Janice C. Reynolds, City Clerk of the City of Rancho Cucamonga, do hereby certify that the foregoing Resolution was duly passed, approved, and adopted by the City Council of the City of Rancho Cucamonga, at a Regular Meeting of said Council held on the 17' day of July, 2024. AYES: Hutchison, Kennedy, Michael, Scott, Stickler NOES: None ABSENT: None ABSTAINED: None Executed this 18' day of July, 2024, at Rancho Cucamonga, California. �• ice C. Reynolds, Citytierk Resolution No. 2024-078 — Page 3 of 3 Annual Engineer's Report Fiscal Year 2024/25 City of Rancho Cucamonga Street Lighting Maintenance District No. 1 (Arterials) ATTACHMENT 10 CITY OF RANCHO CUCAMONGA STREET LIGHTING MAINTENANCE DISTRICT NO. 1 (ARTERIALS) 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909.477.2700 Fax: 909.477.2845 CITY COUNCIL L. Dennis Michael, Mayor Lynne B. Kennedy, Mayor Pro Tern Ryan A. Hutchison, Council Member Kristine D. Scott, Council Member Ashley N. Stickler, Council Member CITY STAFF John R. Gillison, City Manager Elisa Cox, Assistant City Manager Jason C. Welday, Director of Engineering Services/City Engineer Micah Martin, Public Works Director Noah Daniels, Finance Director TABLE OF CONTENTS ENGINEER'S LETTER 1 INTRODUCTION 3 Reason for Assessment 3 Process for Annual Assessment 3 PLANS AND SPECIFICATIONS 4 Description of the Boundaries of the District 4 Description of Improvements and Services 4 Map of Improvements 5 ESTIMATE OF COSTS 7 District Budget 7 Definitions of Budget Items 9 METHOD OF ASSESSMENT 10 Overview 10 Special Benefit 11 General Benefit 11 Method of Assessment Spread 11 ASSESSMENT ROLL AND ANNEXATIONS 15 Assessment Roll 15 Annexations 15 ENGINEER'S LETTER WHEREAS, on June 5, 2024, the City Council of Rancho Cucamonga (the "City"), under the Landscaping and Lighting Act of 1972 (the "1972 Act") adopted its Resolution No. 2024-049, a Resolution Initiating Proceedings for the Levy of Annual Assessments for Street Lighting Maintenance District No. 1 (Arterial) (the "District"); and WHEREAS, the Resolution Initiating Proceedings directed the City Engineer to prepare and file an Annual Engineer's Report for Fiscal Year 2024/25 pursuant to the requirements of the 1972 Act. The Annual Engineer's Report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the maintenance, operations and servicing of the improvements for the District for the referenced fiscal year, a diagram for the District, showing the area and properties proposed to be assessed, and an assessment of the estimated costs of the maintenance, operations and servicing of the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received; and NOW THEREFORE, the following assessment is proposed to be authorized in order to pay for the acquisition of street lights, the installation of Light Emitting Diode (LED) street lighting, and estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the boundaries of the District in proportion to the special benefit received. The following table summarizes the proposed assessment. Fiscal Year 2024/25 Budget Expenditures Personnel Services $ 42,060 Operations and Maintenance 910,690 Transfer Out 111,640 Total Expenditures Budget 1,064,390 Revenues Taxes: Estimated Assessments, Net of Estimated Delinquencies 841,110 Anticipated Prior Year Delinquencies Collection 6,890 Subtotal - Taxes 848,000 Other Revenues 3,170 Transfer In - CFD Empire Lakes 24,630 Transfer In - CFD Street Lighting Services 12,990 Total Revenues Budget 888,790 Contribution to/(Use of) Fund Balance $ (175,600) Total District EBU Count 47,332.66 Actual Assessment per EBU $ 17.77 Maximum Allowable Assessment per EBU $ 17.77 Street Lighting Maintenance District No. 1 — City of Rancho Cucamonga 1 Fiscal Year 2024/25 In making the assessments contained herein pursuant to the 1972 Act: 1. I have identified all parcels which will have a special benefit conferred upon them from the improvement described in the Special Benefit Section of this Annual Engineer's Report (the "Specially Benefited Parcels"). For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is included in this Annual Engineer's Report. 2. 1 have evaluated the costs and expenses of the improvements upon the Specially Benefited Parcels. In making such evaluation: a. The proportionate special benefit derived by each Specially Benefited Parcel from the improvements was determined in relationship to the entirely of the maintenance costs of the improvements; b. No assessment has been imposed on any Specially Benefited Parcel which exceeds the reasonable cost of the proportional special benefit conferred on such parcel from the improvements; and c. Any general benefits from the improvements have been separated from the special benefits and only special benefits have been assessed. I, the undersigned, respectfully submit the enclosed Annual Engineer's Report and, to the best of my knowledge, information and belief, I certify that the Annual Engineer's Report and Assessment Diagram included herein have been prepared and computed in accordance with the order of the City Council of the City of Rancho Cucamonga and the Assessment Law. �RpfESSlpyq W f 4, �* No.67514 �*/` 07/17/2024 %/ Jason C. Welday Date f cF ck�\` Director of Engineering Services/City Engineer Street Lighting Maintenance District No. 1 — City of Rancho Cucamonga 2 Fiscal Year 2024/25 INTRODUCTION Reason for Assessment Approval of the assessment covered by this Engineer's Report will generate the revenue necessary to: Provide for the maintenance and servicing of the improvements described in this Engineer's Report. Maintenance may include but is not limited to, all of the following: the upkeep, repair, removal or replacement of all or any part of any improvement. Servicing means the furnishing of electricity, gas or other illuminating energy for the lighting or appurtenant facilities. This shall also include material, vehicle, equipment, capital improvements, the installation of LED street lighting, and administrative costs associated with the annual administration and operation of the District. Process for Annual Assessment The City cannot levy and collect annual assessments within the District without complying with the procedures specified in the 1972 Act. On an annual basis, an Engineer's Report must be prepared which contains a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. The City Council must also adopt a resolution of intention which: • Declares the intention of the City Council to levy and collect assessments within the District for the fiscal year stated therein. • Generally describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements. • Refers to the District by its distinctive designation and indicate the general location of the District. • Refers to the Engineer's Report, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. • Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment. • States whether the assessment is proposed to increase from the previous year. If the assessments are to be levied in the same or lesser amounts than the maximum assessment amount approved, the City Clerk shall give notice by causing the resolution of intention to be published. Any interested person may, prior to the conclusion of the public hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. Street Lighting Maintenance District No. 1 — City of Rancho Cucamonga 3 Fiscal Year 2024/25 During the course or upon conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including the improvements, to the zones within the District, and the proposed diagram or the proposed assessment. The City Council, upon conclusion of the public hearing, must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the assessment. If the assessment to be levied exceeds the maximum assessment amount previously approved, the City must comply with the procedures specified in Article XIII D and Proposition 218. The voters in the State of California in November 1996 added Article XIII D to the California Constitution imposing, among other requirements, the necessity for the City to conduct an assessment ballot procedure to enable the owners of each property on which assessments are proposed to be enacted or increased, the opportunity to express their support for, or opposition to, the proposed assessment or increase in such assessment. PLANS AND SPECIFICATIONS The District provides for the administration, maintenance, operations, and servicing of various improvements located within the public right-of-way and dedicated easements within the boundaries of the District. Description of the Boundaries of the District The District is located in the City of Rancho Cucamonga, State of California. The boundaries of the District are generally described as the entire City of Rancho Cucamonga. Reference is also made to the Assessment Diagram included in this Report. Description of Improvements and Services The improvements are the maintenance and servicing of street lights, traffic signals and appurtenant facilities throughout the District. The maintenance and servicing includes, but is not limited to, furnishing electric current for public lighting facilities including street lights and traffic signals, and associated appurtenant facilities. Services include personnel, materials, contracting services, utilities, and all necessary costs associated with the maintenance, replacement and repair required to keep the improvements in operational and satisfactory condition. In addition, it is the City's intention to continue to use cost effective materials, in order to lower expenses of the District. In Fiscal Year 2017/18, the acquisition by the City of the street lights and installation of LED street lighting specially benefiting the properties within the District has been added to the improvements. Street Lighting Maintenance District No. 1 — City of Rancho Cucamonga 4 Fiscal Year 2024/25 Map of Improvements The following page shows the map of street light and traffic signal improvements to be maintained using District funds. Street Lighting Maintenance District No. 1 — City of Rancho Cucamonga 5 Fiscal Year 2024/25 -ncn Fn- 0 m , d a' , City of Rancho Cucamonga ro Q Street Lighting Maintenance District No. 1 CD t0 p ` RANCHO L L € Y (Arterials) N 2d S = O(Q c� r- U CD Hillside Rd M.J... l wi{son Av m Banyan St .. : ., . AL Z 14th St IL Q . L � a Lj o Base Line Rd ��� Base Line Rd fi s 0 Foothill BI � �. �i, Foothill BI c 0 3 Arrow Rt Arrow Rt o IV v8th St,,A,000-100�10-- < Legend s 6th • w Street Lights 5 4th St, 4th St SLID 1 'ne r.� .a,n ren+y Foe: `�rnYNn:'7ra4mtbn'1.vllmb�'.nGaau f . aK uy a P—ct.w.wnpa R F.,a.ee a s;tat d Qor.-ai.ec.,Amm. Q Q Q At > y in.Cm of Oa C —W iva.n—aeC.&I-. —ft'aaz'�* o�.yamraea Q Q ea� m 5rx.c.sue.—r. n.,d—-,I Uft� C ' C C L ro City Limits >wam r w.w frra� '-Ae c xe 4k ¢t trn ruenn yx am�nxr, tp Y N ■a��� a,a > uaecaa aF v+oewder.er wev+.k a.c ar vas.,-nr.,s� atrrsa row: E 0 '046 the LC4 ce Va�tW U-a 91 eOkftW IrneapuA a r aM M xc�e+.r ,and.a�v�roxs. loco 9ra«at——. m,ur mpec-- 0 •C L = � � o'�ercrurzna.v ar7'�a�ca gx.axa�m auraae rfe ❑q✓k—to C:�e 0. _ N uafry a.k �a�c o,to may < _ w mile_ ,ft, �P'-"'-d;�ne,—:cam,� 1 0.5 0 1 raclr..�«cua+•�q e-aa m amp Fa•' reran«wtr re tAorn .me xre�r. ESTIMATE OF COSTS The estimated costs of administration, maintenance, operations, and servicing the improvements as described in the Plans and Specifications are summarized below. Each year, as part of the District levy calculation process, the costs and expenses are reviewed and the annual costs are projected for the following fiscal year. District Budget Fiscal Year 2024/25 Budget Expenditures Personnel Services: Regular Salaries $ 28,040 Fringe Benefits 14,020 Subtotal - Personnel 42,060 Operations and Maintenance: Training 220 Membership Dues 80 O & M/General 50,550 Cellular Technology 2,000 Equipment Operations and Maintenance 500 Subtotal - Operations and Maintenance 53,350 Contract Services: Contract Services 47,750 Contract Equipment Maintenance/Repair 4,280 Subtotal - Contract Services 52,030 Utilities: Telephone Utilities 1,500 Electric Utilities 647,300 Subtotal - Utilities 648,800 Assessment Administration 106,710 Admin./General Overhead 49,800 Subtotal -Operations and Maintenance 910,690 Transfer Out - General City Street Lights Fund 111,640 Total Expenditures Budget $ 1,064,390 Street Lighting Maintenance District No. 1 — City of Rancho Cucamonga 7 Fiscal Year 2024/25 Fiscal Year 2024/25 Budget Revenues Taxes: Estimated Assessments, Net of Estimated Delinquencies $ 841,110 Anticipated Prior Year Delinquencies Collection 6,890 Subtotal -Taxes 848,000 Other Revenues: Other Revenue- Day Creek Traffic Signal 3,170 Subtotal -Other Revenues: 3,170 Transfer In Transfer In - CFD Empire Lakes 24,630 Transfer In - CFD Street Lighting Services 12,990 Subtotal -Transfer In: 37,620 Total Revenues Budget 888,790 Contribution to/(Use of) Fund Balance $ (175,600) Total Gross Estimated Assessments $ 841,101.37 Total District EBU Count 47,332.66 Actual Assessment per EBU- Fiscal Year 2024/25 $ 17.77 Maximum Allowable Assessment per EBU- Fiscal Year 2024/25 $ 17.77 The maximum allowable assessment per Equivalent Benefit Unit (EBU) listed in the District budget above, is the amount which was approved in Fiscal Year 1996/97 and subsequent District annexations. Each year, prior to the assessments being placed on the tax roll, the City will review the budget and determine the amount needed to maintain the improvements for the upcoming fiscal year. The actual assessment per EBU will be based on the total amount of funds needed to maintain the improvements in a satisfactory and healthy condition. The actual assessment amount may be lower than the maximum allowable assessment; however, it may not exceed the maximum unless the increase is approved by the property owners in accordance with Proposition 218. It is the intent of the City to maintain an Operating Reserve which shall not exceed the estimated costs of maintenance and servicing of the improvements prior to December 10 of the fiscal year, or when the City expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. The reserve balance information for the District is as follows: Operating Reserve Estimated Reserve Fund Balance, June 30, 2024 $ 341,735 Contribution to/(Use of) Reserve- Fiscal Year 2024/25 (175,600) Estimated Reserve Fund Balance, June 30, 2025 $ 166,135 Street Lighting Maintenance District No. 1 — City of Rancho Cucamonga 8 Fiscal Year 2024/25 Definitions of Budget Items The following definitions describe the costs and expenses included in the District Budget: Personnel Services: This item includes the costs attributed to the salaries of all full-time and part-time employees dedicated to maintenance of the District improvements. Additionally, this includes benefits available to City employees. Operations and Maintenance: This item includes the costs of City staff to perform maintenance duties within the boundaries of the District. Utilities: This item includes the costs to furnish electricity and telephone services, as required, for the operation and maintenance of the street lights, traffic signals, and appurtenant facilities throughout the District. Assessment Administration: This item includes the cost to all particular departments and staff of the City, and consultants for providing the administration, coordination and management of District services, operations, and incidental expenses related to the District. This item also includes creation of an annual Engineer's Report, resolutions and placing the assessment amounts onto the County tax roll each year, along with responding to any public inquiries and future Proposition 218 balloting proceedings. General Overhead: This item includes the costs of all central services departments of the City for providing the coordination of District services, inspections, annual bid management, responding to public concerns, public education, accounting, auditing and procedural matters associated with the District. This item also includes an allocation for general City staff time for administrative functions and systems that provide for a functional and operational District within the City's administrative structure. Capital Outlay: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include installation of safety lights and other large improvements. Debt Service: This item includes the repayment of interest and principal to the City Capital Reserve Fund for the acquisition of street lights and installation of LED street lighting within the District. In Fiscal Year 2023/24, the debt service has been suspended due to the structural operating deficit and will be routinely monitored. Transfer Out - General City Street Lights Fund: This item includes the cost for the replacement and installation of District owned street lights. These costs are incurred in the General City Street Lights Fund and reimbursed by the District. Street Lighting Maintenance District No. 1 — City of Rancho Cucamonga 9 Fiscal Year 2024/25 Other Revenues: This includes other revenues that are not levied through the annual assessments that support the District operations. These other revenues may include: interest earnings and Developer Energizing Fees. METHOD OF ASSESSMENT Overview Pursuant to the 1972 Act and Article XIII D, all parcels that have a special benefit conferred upon them as a result of the maintenance and operation of improvements and services shall be identified, and the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entire costs of the maintenance and operation of improvements. The 1972 Act, permits the establishment of assessment districts for the purpose of providing certain public improvements which include the public lighting facilities, including traffic signals. Section 22573 of the 1972 Act requires that maintenance assessments must be levied according to benefit rather than according to assessed value. This Section states: The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefit to be received by each such lot or parcel from the improvements. The determination of whether or not a lot or parcel will benefit from the improvements shall be made pursuant to the Improvement Act of 1911 (Division 7 commencing with Section 5000) [of the Streets and Highways Code, State of California]. Section 22547 of the 1972 Act also permits the designation of zones of benefit within any individual assessment district if "by reasons or variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvement". Article XIII D, Section 4(a) of the California Constitution limits the amount of any assessment to the proportional special benefit conferred on the property. Article XIII D also provides that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment. Exempted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements and rights-of-ways, public greenbelts and public parkways. The net amount to be assessed may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels. Proposition 218, approved by Street Lighting Maintenance District No. 1 — City of Rancho Cucamonga 10 Fiscal Year 2024/25 the voters in November 1996, requires the City to separate general benefit from special benefit, where only special benefit is assessed. Special Benefit The maintenance and servicing of the improvements within the District (which are described in the Description of Improvements and Services Section of this report) are for the benefit of the properties within the District, and as such confer a special and direct benefit to parcels within the District by: • improving the livability, safety, appearance, and desirability for properties within the boundaries of the District, and • ensuring that improvements do not reach a state of deterioration or disrepair so as to be materially detrimental to properties within the District, and • providing for safe vehicular and pedestrian access for properties within the District, and • providing beautification and overall enhancement to properties within the District. The above mentioned items affect the assessed property in a way that is particular and distinct from their effect on other parcels and that real property in general and the public at large do not share. They contribute to a specific enhancement of the properties within the District. Since these improvements were installed and are maintained specifically for the properties within the District; only properties within the District receive a special benefit and are assessed for said maintenance. General Benefit In addition to the special benefits received by parcels within the District, there are derivative general benefits that are conferred on parcels outside the boundaries of the District which include: • the safety and visual enhancement of the area to persons or vehicles that may travel through the District However, it has been determined that these benefits are derivative and do not provide a direct benefit to parcels outside of the district that are not being assessed. Method of Assessment Spread Each of the parcels within the District is deemed to receive special benefit from the improvements. Each parcel that has a special benefit conferred upon it as a result of the maintenance and operation of improvements are identified and the proportionate special benefit derived by each identified parcel is determined in relationship to the entire costs of the maintenance and operation of the improvements. Street Lighting Maintenance District No. 1 — City of Rancho Cucamonga 11 Fiscal Year 2024/25 When the District was formed, Article XIII D and Proposition 218 had not yet been passed. Upon the passage of Article XIII D and the subsequent passage of the Proposition Omnibus Implementation Act, new rules were put into place. Due to the changes in legal requirements, as property annexed to the District after the passage of the Assessment Law, the description of the method of assessment became more refined; however, the assessment per parcel has remained the same since Fiscal Year 1996/97. Further, no parcel included in the District formation or annexations prior to when the language was refined, are now being levied differently than they were at the time the District was formed or the parcels were annexed. To assess special benefit appropriately, it is necessary to relate the different type of parcel improvements to each other. The Equivalent Benefit Unit ("EBU") method of apportionment uses the single-family home as the basic unit of assessment. A single-family home equals one Equivalent Benefit Unit (EBU). Every other land-use is converted to EBUs based on an assessment formula that equates to the property's specific development status, type of development (land-use), and size of the property, as compared to a single-family home. The following table provides the weighting factors applied to various land- use types, as assigned by County use code, to determine each parcel's EBU assignment. Land-Use Equivalent Benefit Units Property Type (County Use Code EBU Value Multiplier Single Family Residential 1.00 Parcel Multi-FamilyResidential 1.00 Unit Non-Residential 2.00 Acre The use of the latest County Assessor's Secured Roll shall be the basis for the Property Type determination and units/acreage assignments, unless better data is available to the City. In addition, if any parcel within the District is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, the Property Type and EBU assignment shall be based on the correct parcel number and/or new parcel number(s) County use code and subsequent property information. If a single parcel has changed to multiple parcels, the EBU assignment and assessment amount applied to each of the new parcels will be recalculated rather than spread the proportionate share of the original assessment. The following table summarizes the Fiscal Year 2024/25 maximum allowable assessment rates for the District: Street Lighting Maintenance District No. 1 — City of Rancho Cucamonga 12 Fiscal Year 2024/25 Maximum Allowable Actual Assessment Rate Asessment Total Property Type (County Use Codeper EBU Rate per EBU Units/Acres Total EBUs Single Family Residential $17.77 $17.77 28,412.00 28,412.00 Multi-FamilyResidential 17.77 17.77 12 633.00 12,633.00 Non-Residential 17.77 17.771 3.143.83 6.287.66 The total amount of maintenance and incidental costs for maintaining the streetlights and traffic signals is assessed to the individual parcels of real property within the District in proportion to the special benefit received by such parcels of real property. The proposed individual assessments are shown on the assessment roll in this report. ASSESSMENT DIAGRAM An Assessment Diagram for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the County Assessor of the County San Bernardino, at the time this report was prepared, and are incorporated by reference herein and made part of this Engineer's Report. Street Lighting Maintenance District No. 1 — City of Rancho Cucamonga 13 Fiscal Year 2024/25 mcn 0 CD Q) CD City of Rancho Cucamonga _„ _,,,Street Lighting Maintenance District No. 1 N RANCHO , �v CUt.. ONG > Q (Arterials) CD(a E t E >I �i CD a =3 i 0) 43 � n Hillside Rd CD t �' Wilson Av �__ 0 Banyan St o Z l 19th St _ O Base Line Rd Base Line Rd o Foothill BI 0 � 3 Arrow Rt o fis v Sth St;.._�„ > a I j6th S\ ILegend C! W C �1 5 4th St� 4th St %__j City Limits .rM G.irp Mpii.Oii .i-K`p.:.w1r.�Rn a> a> a' a Q> ¢' SLD1 v. -0C f0 a C �. M i b IY mow.Mif.a�X mw..s.i11.1i r ay S'bIDOOM V) /ICibt�!w WY, lb O fO..et Ai i0�Ir.iv xnm O > y r s wrar b.r�iury..y.M w i 3b�b wrm n,m, IC(J�a.ar r baiie 0._p.fir w.a-rwwr ab o. w+.err. rcbra r, kww r..uwMy w ii.a wb p!i►A.Or r a..cuaorp = 44 w,rr wmrt v a.e aw■mr.�v.i r be or.ra;�:a�, Q = 63 Mlles ®.+�-b -Y •m.2 �. �..... 1.5 11.75 a 1.5 ASSESSMENT ROLL AND ANNEXATIONS Assessment Roll The assessment roll is a listing of the assessment for Fiscal Year 2024/25 apportioned to each lot or parcel, as shown on the last equalized roll of the Assessor of the County of San Bernardino. The following table summarize the Fiscal Year 2024/25 actual assessments for the District: Actual Assessment Total Property Type (County Use Code) Rate per EBU Units/Acres Total EBUs Total Assessment Single Family Residential $17.77 28,412.00 28,412.00 $504,881.24 Multi-FamilyResidential 17.77 12,633.00 12,633.00 224,488.41 Non-Residential 17.77 3,143.83 6,287.66 111,731.72 Totals 44,188.83 47,332.66 $841,101.37 A copy of the full assessment roll is available for review in the City Clerk's office. Annexations The following annexations are effective for Fiscal Year 2024/25: Annexation Total Units/ Apn Date Project Name Acres Total EBUs PropertyType 1076-041-34 01/18/23 DRC2021-00026 1.00 1.00 Single-Family Res 0226-231-54 02/15/23 DRC2020-00022 1.00 1.00 Single-Family Res 0229-021-97 02/15/23 DRC2021-00320 2.37 2.37 Commercial/Industrial 0229-311-14& 15 03/15/23 DRC2020-00440 260.00 260.00 Multi-Family Res 0225-171-04 03/15/23 SUBTT20337 9.00 9.00 Single-Family Single-F,mily Res Street Lighting Maintenance District No. 1 — City of Rancho Cucamonga 15 Fiscal Year 2024/25 Annual Engineer's Report Fiscal Year 2024/25 City of Rancho Cucamonga Street Lighting Maintenance District No. 2 (Local Streets) ATTACHMENT 11 CITY OF RANCHO CUCAMONGA STREET LIGHTING MAINTENANCE DISTRICT NO. 2 (LOCAL STREETS) 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909.477.2700 Fax: 909.477.2845 CITY COUNCIL L. Dennis Michael, Mayor Lynne B. Kennedy, Mayor Pro Tern Ryan A. Hutchison, Council Member Kristine D. Scott, Council Member Ashley N. Stickler, Council Member CITY STAFF John R. Gillison, City Manager Elisa Cox, Assistant City Manager Jason C. Welday, Director of Engineering Services/City Engineer Micah Martin, Public Works Director Noah Daniels, Finance Director TABLE OF CONTENTS ENGINEER'S LETTER 1 INTRODUCTION 3 Reason for Assessment 3 Process for Annual Assessment 3 PLANS AND SPECIFICATIONS 4 Description of the Boundaries of the District 4 Description of Improvements and Services 4 Map of Improvements 5 ESTIMATE OF COSTS 7 District Budget 7 Definitions of Budget Items 9 METHOD OF ASSESSMENT 10 Overview 10 Special Benefit 11 General Benefit 11 Method of Assessment Spread 11 ASSESSMENT DIAGRAM 13 ASSESSMENT ROLL AND ANNEXATIONS 15 Assessment Roll 15 Annexations 15 ENGINEER'S LETTER WHEREAS, on June 5, 2024, the City Council of Rancho Cucamonga (the "City"), under the Landscaping and Lighting Act of 1972 (the "1972 Act") adopted its Resolution No. 2024-049, a Resolution Initiating Proceedings for the Levy of Annual Assessments for Street Light Maintenance District No. 2 (Local Streets) (the "District"); and WHEREAS, the Resolution Initiating Proceedings directed the City Engineer to prepare and file an Annual Engineer's Report for Fiscal Year 2024/25 pursuant to the requirements of the 1972 Act. The Annual Engineer's Report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the maintenance, operations and servicing of the improvements for the District for the referenced fiscal year, a diagram for the District, showing the area and properties proposed to be assessed, and an assessment of the estimated costs of the maintenance, operations and servicing of the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received; and NOW THEREFORE, the following assessment is proposed to be authorized in order to pay for the acquisition of street lights, the installation of Light Emitting Diode (LED) street lighting, and estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the boundaries of the District in proportion to the special benefit received. The following table summarizes the proposed assessment. Fiscal Year 2024/25 Budget Expenditures Operations and Maintenance $ 439,350 Transfer Out 113,950 Total Expenditures Budget 553,300 Revenues Taxes: Estimated Assessments, Net of Estimated Delinquencies 392,560 Anticipated Prior Year Delinquencies Collection 4,000 Subtotal - Taxes 396,560 Transfer In -General Fund 70,200 Transfer In - CFD Empire Lakes 66,180 Transfer In - CFD Street Lighting Services 20,360 Total Revenues Budget 553,300 Contribution to/(Use of) Fund Balance $ - Total District EBU Count 9,821.32 Actual Assessment per EBU $ 39.97 Maximum Allowable Assement per EBU $ 39.97 Street Lighting Maintenance District No. 2— City of Rancho Cucamonga 1 Fiscal Year 2024/25 In making the assessments contained herein pursuant to the 1972 Act: 1. I have identified all parcels which will have a special benefit conferred upon them from the improvement described in the Special Benefit Section of this Annual Engineer's Report (the "Specially Benefited Parcels"). For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is included in this Annual Engineer's Report. 2. 1 have evaluated the costs and expenses of the improvements upon the Specially Benefited Parcels. In making such evaluation: a. The proportionate special benefit derived by each Specially Benefited Parcel from the improvements was determined in relationship to the entirely of the maintenance costs of the improvements; b. No assessment has been imposed on any Specially Benefited Parcel which exceeds the reasonable cost of the proportional special benefit conferred on such parcel from the improvements; and c. Any general benefits from the improvements have been separated from the special benefits and only special benefits have been assessed. 1, the undersigned, respectfully submit the enclosed Annual Engineer's Report and, to the best of my knowledge, information and belief, I certify that the Annual Engineer's Report and Assessment Diagram included herein have been prepared and computed in accordance with the order of the City Council of the City of Rancho Cucamonga and the Assessment Law. QV[ESS�Ov h~�P QS�N wf j fy� A m * No.67514 * 07/17/2024 Jason C. Welday Date \f of Director of Engineering Services/City Engineer Street Lighting Maintenance District No. 2— City of Rancho Cucamonga 2 Fiscal Year 2024/25 INTRODUCTION Reason for Assessment Approval of the assessment covered by this Engineer's Report will generate the revenue necessary to: Provide for the maintenance and servicing of the improvements described in this Engineer's Report. Maintenance may include but is not limited to, all of the following: the upkeep, repair, removal or replacement of all or any part of any improvement. Servicing means the furnishing of electricity, gas or other illuminating energy for the lighting or appurtenant facilities. This shall also include material, vehicle, equipment, capital improvements, the installation of LED street lighting, and administrative costs associated with the annual administration and operation of the District. Process for Annual Assessment The City cannot levy and collect annual assessments within the District without complying with the procedures specified in the 1972 Act. On an annual basis, an Engineer's Report must be prepared which contains a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. The City Council must also adopt a resolution of intention which: • Declares the intention of the City Council to levy and collect assessments within the District for the fiscal year stated therein. • Generally describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements. • Refers to the District by its distinctive designation and indicate the general location of the District. • Refers to the Engineer's Report, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. • Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment. • States whether the assessment is proposed to increase from the previous year. If the assessments are to be levied in the same or lesser amounts than the maximum assessment amount approved, the City Clerk shall give notice by causing the resolution of intention to be published. Any interested person may, prior to the conclusion of the public hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. Street Lighting Maintenance District No. 2— City of Rancho Cucamonga 3 Fiscal Year 2024/25 During the course or upon conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including the improvements, to the zones within the District, and the proposed diagram or the proposed assessment. The City Council, upon conclusion of the public hearing must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the assessment. If the assessment to be levied exceeds the maximum assessment amount previously approved, the City must comply with the procedures specified in Article XIII D and Proposition 218. The voters in the State of California in November 1996 added Article XIII D to the California Constitution imposing, among other requirements, the necessity for the City to conduct an assessment ballot procedure to enable the owners of each property on which assessments are proposed to be enacted or increased, the opportunity to express their support for, or opposition to, the proposed assessment or increase in such assessment. PLANS AND SPECIFICATIONS The District provides for the administration, maintenance, operations, and servicing of various improvements located within the public right-of-way and dedicated easements within the boundaries of the District. Description of the Boundaries of the District The District is located in the City of Rancho Cucamonga, State of California. The boundaries of the District are generally described as the entire City west of Haven Ave. Reference is also made to the Assessment Diagram included in this Report. Description of Improvements and Services The improvements are the maintenance and servicing of street lights, traffic signals and appurtenant facilities throughout the District. The maintenance and servicing includes, but is not limited to, furnishing electric current for public lighting facilities including street lights and traffic signals, and associated appurtenant facilities. Services include personnel, materials, contracting services, utilities, and all necessary costs associated with the maintenance, replacement and repair required to keep the improvements in operational and satisfactory condition. In addition, it is the City's intention to continue to use cost effective materials, in order to lower expenses of the District. In Fiscal Year 2017/18, the acquisition by the City of the street lights and installation of LED street lighting specially benefiting the properties within the District has been added to the improvements. Street Lighting Maintenance District No. 2— City of Rancho Cucamonga 4 Fiscal Year 2024/25 Map of Improvements The following page shows the map of street light and traffic signal improvements to be maintained using District funds. Street Lighting Maintenance District No. 2— City of Rancho Cucamonga 5 Fiscal Year 2024/25 -nCn v > Q a' City of Rancho Cucamonga Q CD o Street Lighting Maintenance District No. 2 �ANCNO r E _ E Y (Local Streets) N p cQ U S Q = _ — 1 N • • ! ! m. . .Q r Ui :3 • I > f1� Hillside Rd 1... 'i ,,, : I a ° r ` • U. LJ Wilson Av CD I _ Q �0 w 0 Banyan St �• in' z Z ' 19th St _• -- N � I r Base Line Rd u o r' . s, Base Line Rd O Foothill BI �!»� • Foothill BI c v Arrow Rt i Arrow Rt o 8th St sv a < ' a Legend ehth s t� c w Streetlights 4th St 4th 5t 7 1 �l SLD 2 � � j �V�.si > �—J :. .c i.M1•.M.•we.w.. �w.+ro.: ...c.w..n Q. Q `!l Q Q Q Q •r ..t].a Y.R cvwo..w P..w.p•p..—pd A..:br i �.cyd..a.c.u.w.y..rr..wprno...w•.r.r+w�v�..+. � � � C C �- (O City Limits ...r��wr..a..•—'we.....e.r d«nh...w (p d aJ N L7 •—.J .e..I.61..w...e.....4«.'e d M.w.rn•..+e I..n _ '�.�o.d.w.f.fau:W...w..re p.....ww.n sew.«.•M T �_ ?? E }..a+.W..d b.w b♦w•.W.wo-1..J.d bw.[ue..Y = U QJ L 1..7 0 j Miles ESTIMATE OF COSTS The estimated costs of administration, maintenance, operations, and servicing the improvements as described in the Plans and Specifications are summarized below. Each year, as part of the District levy calculation process, the costs and expenses are reviewed and the annual costs are projected for the following fiscal year. District Budget Fiscal Year 2024/25 Budget Expenditures Operations and Maintenance: Training $ 220 Membership Dues 80 Operations and Maintenance 430 Subtotal - Operations and Maintenance 730 Contract Services: Contract Services/General 20,990 Contract Equipment Maintenace/Repair 50 Subtotal - Contract Services 21,040 Utilities: Electric Utilities 390,200 Assessment Administration 26,350 Admin./General Overhead 1,030 Subtotal - Operations and Maintenance 439,350 Transfer Out - General Street Lights Fund 113,950 Total Expenditures Budget $ 553,300 Street Lighting Maintenance District No. 2— City of Rancho Cucamonga 7 Fiscal Year 2024/25 Fiscal Year 2024/25 Budget Revenues Taxes: Estimated Assessments, Net of Estimated Delinquencies $ 392,560 Anticipated Prior Year Delinquencies Collection 4,000 Subtotal -Taxes 396,560 Transfer In Transfer In - General Fund 70,200 Transfer In - CFD Empire Lakes 66,180 Transfer In - CFD Street Lighting Services 20,360 156,740 Total Revenues Budget 553,300 Contribution to/(Use of) Fund Balance $ - Total Gross Estimated Assessments $ 392,558.15 Total District EBU Count 9,821.32 Actual Assessment per EBU- Fiscal Year 2024/25 $ 39.97 Maximum Allowable Assessment per EBU- Fiscal Year 2024/25 $ 39.97 The maximum allowable assessment per Equivalent Benefit Unit (EBU) listed in the District budget above, is the amount which was approved in Fiscal Year 1996/97 and subsequent District annexations. Each year, prior to the assessments being placed on the tax roll, the City will review the budget and determine the amount needed to maintain the improvements for the upcoming fiscal year. The actual assessment per EBU will be based on the total amount of funds needed to maintain the improvements in a satisfactory and healthy condition. The actual assessment amount may be lower than the maximum allowable assessment; however, it may not exceed the maximum unless the increase is approved by the property owners in accordance with Proposition 218. It is the intent of the City of Rancho Cucamonga to maintain an Operating Reserve which shall not exceed the estimated costs of maintenance and servicing of the improvements prior to December 10 of the fiscal year, or when the City expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. The reserve balance information for the District is as follows: Operating Reserve Estimated Reserve Fund Balance, June 30, 2024 $ 982,058 Contribution to/(Use of) Reserve- Fiscal Year 2024/25 - Estimated Reserve Fund Balance, June 30, 2025 $ 982,058 Street Lighting Maintenance District No. 2— City of Rancho Cucamonga 8 Fiscal Year 2024/25 Definitions of Budget Items The following definitions describe the costs and expenses included in the District Budget: Personnel Services: This item includes the costs attributed to the salaries of all full-time and part-time employees dedicated to maintenance of the District improvements. Additionally, this includes benefits available to City employees. Operations and Maintenance: This item includes the costs of City staff to perform maintenance duties within the boundaries of the District. Utilities: This item includes the costs to furnish electricity and telephone services, as required, for the operation and maintenance of the street lights, traffic signals, and appurtenant facilities throughout the District. Assessment Administration: This item includes the cost to all particular departments and staff of the City, and consultants for providing the administration, coordination and management of District services, operations, and incidental expenses related to the District. This item also includes creation of an annual Engineer's Report, resolutions and placing the assessment amounts onto the County tax roll each year, along with responding to any public inquiries and future Proposition 218 balloting proceedings. General Overhead: This item includes the costs of all central services departments of the City for providing the coordination of District services, inspections, annual bid management, responding to public concerns, public education, accounting, auditing and procedural matters associated with the District. This item also includes an allocation for general City staff time for administrative functions and systems that provide for a functional and operational District within the City's administrative structure. Capital Outlay: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include installation of safety lights and other large improvements. Debt Service: This item includes the repayment of interest and principal to the City Capital Reserve Fund for the acquisition of street lights and installation of LED street lighting within the District. In Fiscal Year 2023/24, the debt service has been suspended due to the structural operating deficit and will be routinely monitored. Transfer Out - General City Street Lights Fund: This item includes the cost for the replacement and installation of District owned street lights. These costs are incurred in the General City Street Lights Fund and reimbursed by the District. Street Lighting Maintenance District No. 2 — City of Rancho Cucamonga 9 Fiscal Year 2024/25 Other Revenues: This includes other revenues that are not levied through the annual assessments that support the District operations. These other revenues may include: interest earnings and Developer Energizing Fees. METHOD OF ASSESSMENT Overview Pursuant to the 1972 Act and Article XIII D, all parcels that have a special benefit conferred upon them as a result of the maintenance and operation of improvements and services shall be identified, and the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entire costs of the maintenance and operation of improvements. The 1972 Act, permits the establishment of assessment districts for the purpose of providing certain public improvements which include the public lighting facilities, including traffic signals. Section 22573 of the 1972 Act requires that maintenance assessments must be levied according to benefit rather than according to assessed value. This Section states: The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefit to be received by each such lot or parcel from the improvements. The determination of whether or not a lot or parcel will benefit from the improvements shall be made pursuant to the Improvement Act of 1911 (Division 7 commencing with Section 5000) [of the Streets and Highways Code, State of California]. Section 22547 of the 1972 Act also permits the designation of zones of benefit within any individual assessment district if "by reasons or variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvement". Article XIII D, Section 4(a) of the California Constitution limits the amount of any assessment to the proportional special benefit conferred on the property. Article XIII D also provides that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment. Exempted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements and rights-of-ways, public greenbelts and public parkways. The net amount to be assessed may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels. Proposition 218, approved by Street Lighting Maintenance District No. 2 — City of Rancho Cucamonga 10 Fiscal Year 2024/25 the voters in November 1996, requires the City to separate general benefit from special benefit, where only special benefit is assessed. Special Benefit The maintenance and servicing of the improvements within the District (which are described in the Description of Improvements and Services Section of this report) are for the benefit of the properties within the District, and as such confer a special and direct benefit to parcels within the District by: • improving the livability, safety, appearance, and desirability for properties within the boundaries of the District, and • ensuring that improvements do not reach a state of deterioration or disrepair so as to be materially detrimental to properties within the District, and • providing for safe vehicular and pedestrian access for properties within the District, and • providing beautification and overall enhancement to properties within the District. The above mentioned items affect the assessed property in a way that is particular and distinct from their effect on other parcels and that real property in general and the public at large do not share. They contribute to a specific enhancement of the properties within the District. Since these improvements were installed and are maintained specifically for the properties within the District; only properties within the District receive a special benefit and are assessed for said maintenance. General Benefit In addition to the special benefits received by parcels within the District, there are derivative general benefits that are conferred on parcels outside the boundaries of the District which include: • the safety and visual enhancement of the area to persons or vehicles that may travel through the District However, it has been determined that these benefits are derivative and do not provide a direct benefit to parcels outside of the District that are not being assessed. Method of Assessment Spread Each of the parcels within the District is deemed to receive special benefit from the improvements. Each parcel that has a special benefit conferred upon it as a result of the maintenance and operation of improvements are identified and the proportionate special benefit derived by each identified parcel is determined in relationship to the entire costs of the maintenance and operation of the improvements. Street Lighting Maintenance District No. 2— City of Rancho Cucamonga 11 Fiscal Year 2024/25 When the District was formed, Article XIII D and Proposition 218 had not yet been passed. Upon the passage of Article XIII D and the subsequent passage of the Proposition Omnibus Implementation Act, new rules were put into place. Due to the changes in legal requirements, as property annexed to the District after the passage of the Assessment Law, the description of the method of assessment became more refined; however, the assessment per parcel has remained the same since Fiscal Year 1996/97. Further, no parcel included in the District formation or annexations prior to when the language was refined, are now being levied differently than they were at the time the District was formed or the parcels were annexed. To assess special benefit appropriately, it is necessary to relate the different type of parcel improvements to each other. The EBU method of apportionment uses the single-family home as the basic unit of assessment. A single-family home equals one EBU. Every other land-use is converted to EBUs based on an assessment formula that equates to the property's specific development status, type of .development (land-use), and size of the property, as compared to a single-family home. The following table provides the weighting factors applied to various land-use types, as assigned by County use code, to determine each parcel's EBU assignment. Land-Use Equivalent Dwelling Units Property Type (County Use Code) EBU Value Multiplier Single Family Residential 1.00 Parcel Multi-Family Residential 1.00 Unit Non-Residential 2.00 Acre The use of the latest County Assessor's Secured Roll shall be the basis for the Property Type determination and units/acreage assignments, unless better data is available to the City. In addition, if any parcel within the District is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, the Property Type and EBU assignment shall be based on the correct parcel number and/or new parcel number(s) County use code and subsequent property information. If a single parcel has changed to multiple parcels, the EBU assignment and assessment amount applied to each of the new parcels will be recalculated rather than spread the proportionate share of the original assessment. Street Lighting Maintenance District No. 2— City of Rancho Cucamonga 12 Fiscal Year 2024/25 The following table summarizes the Fiscal Year 2024/25 maximum allowable assessment rates for the District: Maximum Allowable Actual Assessment Asessment Total Property Type County Use Code Rate per EBU Rate per EBU Units/Acres Total EBUs Single Family Residential $39.97 $39.97 7,346.00 7,346.00 Multi-Family Residential 39.97 39.97 2,405.00 2,405.00 Non-Residential 39.97 39.97 35.161 70.32 The total amount of maintenance and incidental costs for maintaining the street lights and traffic signals is assessed to the individual parcels of real property within the District in proportion to the special benefit received by such parcels of real property. The proposed individual assessments are shown on the assessment roll in this report. ASSESSMENT DIAGRAM An Assessment Diagram for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Assessor of the County San Bernardino, at the time this report was prepared, and are incorporated by reference herein and made part of this Engineer's Report. Street Lighting Maintenance District No. 2 — City of Rancho Cucamonga 13 Fiscal Year 2024/25 5Z/t,ZOZ JeOA leosi j t, ebuoweono oyoue�j jo Aj!O —Z •oN 1oi4siQ 9oueu91uiew 6ui}y6i-1 1994S sZ % 9 s 10 daftJim� K x Grove Av •-•--�_, ~iCL ,•' IRA 1111.1 � � t I Carnelian St' a Vineyard AvHellman Av _r,�.. Hellman Av � Archibald Av Archibald vr Hermosa Av j Hermosa Av r.. Haven Av i Haven Av j 1 j Milliken Av ......i Milliken Av !_�-•� I Rochester Av I Rochester Av I Day Creek RI lr Etiwanda Av _ Etiwanda Av i East Av ..----•-- -----•• cn _ a ef) != D Ln •* W ro rt O f a � -w I to or a�i �_ ro che0,7 )Av /,", O O a � ^ is z o O O 7 �• • to ASSESSMENT ROLL AND ANNEXATIONS Assessment Roll The assessment roll is a listing of the assessment for Fiscal Year 2024/25 apportioned to each lot or parcel, as shown on the last equalized roll of the Assessor of the County of San Bernardino. The following table summarizes the Fiscal Year 2024/25 actual assessments for the District: Actual Assessment Total Property Type (County Use Code) Rate per EBU Units/Acres Total EBUs Total Assessment Single Family Residential $39.97 7,346.00 7,346.00 $ 293,619.62 Multi-Family Residential 39.971 2,405.001 2,405.001 $ 96,127.85 Non-Residential 39.97 35.16 70.32 $ 2,810.68 Totals 1 9,786.161 9,821.321 $ 392,558.15 A copy of the full assessment roll is available for review in the City Clerk's office. Annexations The following annexations are effective for Fiscal Year 2024/25: Annexation Total Units APN Date Project /Acres Total EBUs Type 1076-041-34 01/18/23 DRC2021-00026 1.00 1.00 Single-Family Res 0229-311-14& 15 03/15/23 DRC2020-00440 260.00 260.00 KAulti-Farnily Res Street Lighting Maintenance District No. 2— City of Rancho Cucamonga 15 Fiscal Year 2024/25 Annual Engineer's Report Fiscal Year 2024/25 City of Rancho Cucamonga Street Lighting Maintenance District No. 3 (Victoria Planned Community) ATTACHMENT 12 CITY OF RANCHO CUCAMONGA STREET LIGHTING MAINTENANCE DISTRICT NO. 3 (VICTORIA PLANNED COMMUNITY) 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909.477.2700 Fax: 909.477.2845 CITY COUNCIL L. Dennis Michael, Mayor Lynne B. Kennedy, Mayor Pro Tern Ryan A. Hutchison, Council Member Kristine D. Scott, Council Member Ashley N. Stickler, Council Member CITY STAFF John R. Gillison, City Manager Elisa Cox, Assistant City Manager Jason C. Welday, Director of Engineering Services/City Engineer Micah Martin, Public Works Director Noah Daniels, Finance Director TABLE OF CONTENTS ENGINEER'S LETTER 1 INTRODUCTION 3 Reason for Assessment 3 Process for Annual Assessment 3 PLANS AND SPECIFICATIONS 4 Description of the Boundaries of the District 4 Description of Improvements and Services 4 Map of Improvements 5 ESTIMATE OF COSTS 7 District Budget 7 Definitions of Budget Items 9 METHOD OF ASSESSMENT 10 Overview 10 Special Benefit 11 General Benefit 11 Method of Assessment Spread 11 ASSESSMENT DIAGRAM 13 ASSESSMENT ROLL AND ANNEXATIONS 15 Assessment Roll 15 Annexations 15 ENGINEER'S LETTER WHEREAS, on June 5, 2024, the City Council of Rancho Cucamonga (the "City"), under the Landscaping and Lighting Act of 1972 (the "1972 Act") adopted its Resolution No. 2024-049, a Resolution Initiating Proceedings for the Levy of Annual Assessments for Street Light Maintenance District No. 3 (Victoria Planned Community) (the "District"); and WHEREAS, the Resolution Initiating Proceedings directed the City Engineer to prepare and file an Annual Engineer's Report for Fiscal Year 2024/25 pursuant to the requirements of the 1972 Act. The Annual Engineer's Report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the maintenance, operations and servicing of the improvements for the District for the referenced fiscal year, a diagram for the District, showing the area and properties proposed to be assessed, and an assessment of the estimated costs of the maintenance, operations and servicing of the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received; and NOW THEREFORE, the following assessment is proposed to be authorized in order to pay for the acquisition of street lights, the installation of Light Emitting Diode (LED) street lighting, and estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the boundaries of the District in proportion to the special benefit received. The following table summarizes the proposed assessment. Fiscal Year 2024/25 Budget Expenditures Personnel Services $ 54,260 Operations and Maintenance 202,100 Transfer Out 43,370 Total Expenditures Budget 299,730 Revenues Taxes: Estimated Assessments, Net of Estimated Delinquencies 381,410 Anticipated Prior Year Delinquencies Collection 2,730 Total Revenues Budget 384,140 Contribution to/(Use of) Fund Balance $ 84,410 Total District EBU Count 8,089.24 Actual Assessment per EBU $ 47.15 Maximum Allowable Assessment per EBU $ 47.15 Street Lighting Maintenance District No. 3 — City of Rancho Cucamonga 1 Fiscal Year 2024/25 In making the assessments contained herein pursuant to the 1972 Act: 1. I have identified all parcels which will have a special benefit conferred upon them from the improvement described in the Special Benefit Section of this Annual Engineer's Report (the "Specially Benefited Parcels"). For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is included in this Annual Engineer's Report. 2. 1 have evaluated the costs and expenses of the improvements upon the Specially Benefited Parcels. In making such evaluation: a. The proportionate special benefit derived by each Specially Benefited Parcel from the improvements was determined in relationship to the entirety of the maintenance costs of the improvements; b. No assessment has been imposed on any Specially Benefited Parcel which exceeds the reasonable cost of the proportional special benefit conferred on such parcel from the improvements; and c. Any general benefits from the improvements have been separated from the special benefits and only special benefits have been assessed. I, the undersigned, respectfully submit the enclosed Annual Engineer's Report and, to the best of my knowledge, information and belief, I certify that the Annual Engineer's Report and Assessment Diagram included herein have been prepared and computed in accordance with the order of the City Council of the City of Rancho Cucamonga and the Assessment Law. 0 QROF�� m * W.67514 * 07/17/2024 clov �1, Jason C. Welday Date of ck\.`F Director of Engineering Services/City Engineer Street Lighting Maintenance District No. 3 — City of Rancho Cucamonga 2 Fiscal Year 2024/25 INTRODUCTION Reason for Assessment Approval of the assessment covered by this Engineer's Report will generate the revenue necessary to: Provide for the maintenance and servicing of the improvements described in this Engineer's Report. Maintenance may include but is not limited to, all of the following: the upkeep, repair, removal or replacement of all or any part of any improvement. Servicing means the furnishing of electricity, gas or other illuminating energy for the lighting or appurtenant facilities. This shall also include material, vehicle, equipment, capital improvements, the installation of LED street lighting, and administrative costs associated with the annual administration and operation of the District. Process for Annual Assessment The City cannot levy and collect annual assessments within the District without complying with the procedures specified in the 1972 Act. On an annual basis, an Engineer's Report must be prepared which contains a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. The City Council must also adopt a resolution of intention which: • Declares the intention of the City Council to levy and collect assessments within the District for the fiscal year stated therein. • Generally describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements. • Refers to the District by its distinctive designation and indicate the general location of the District. • Refers to the Engineer's Report, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. • Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment. • States whether the assessment is proposed to increase from the previous year. If the assessments are to be levied in the same or lesser amounts than the maximum assessment amount approved, the City Clerk shall give notice by causing the resolution of intention to be published. Any interested person may, prior to the conclusion of the public hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. Street Lighting Maintenance District No. 3— City of Rancho Cucamonga 3 Fiscal Year 2024/25 During the course or upon conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including the improvements, to the zones within the District, and the proposed diagram or the proposed assessment. The City Council, upon conclusion of the public hearing must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the assessment. If the assessment to be levied exceeds the maximum assessment amount previously approved, the City must comply with the procedures specified in Article XIII D and Proposition 218. The voters in the State of California in November 1996 added Article XIII D to the California Constitution imposing, among other requirements, the necessity for the City to conduct an assessment ballot procedure to enable the owners of each property on which assessments are proposed to be enacted or increased, the opportunity to express their support for, or opposition to, the proposed assessment or increase in such assessment. PLANS AND SPECIFICATIONS The District provides for the administration, maintenance, operations, and servicing of various improvements located within the public right-of-way and dedicated easements within the boundaries of the District. Description of the Boundaries of the District The District is located in the City of Rancho Cucamonga, State of California. The boundaries of the District are generally described as that area located south of the 210 Freeway, west of Etiwanda Ave, southwest of the 1-15 Freeway and east of Haven Ave, also known as the Victoria Neighborhood Planned Community, and are more particularly in the diagram of the District included herein. Reference is also made to the Assessment Diagram included in this Report. Description of Improvements and Services The improvements are the maintenance and servicing of street lights, traffic signals and appurtenant facilities throughout the District. The maintenance and servicing includes, but is not limited to, furnishing electric current for public lighting facilities including street lights and traffic signals, and associated appurtenant facilities. Services include personnel, materials, contracting services, utilities, and all necessary costs associated with the maintenance, replacement and repair required to keep the improvements in operational and satisfactory condition. In addition, it is the City's intention to continue to use cost effective materials, in order to lower expenses of the District. In Fiscal Year 2017/18, the acquisition by the City of the street lights and installation of LED street lighting specially benefiting the properties within the District has been added to the improvements. Street Lighting Maintenance District No. 3 — City of Rancho Cucamonga 4 Fiscal Year 2024/25 Map of Improvements The following page shows the map of street light and traffic signal improvements to be maintained using District funds. Street Lighting Maintenance District No. 3 — City of Rancho Cucamonga 5 Fiscal Year 2024/25 -n (n v CD m City of Rancho Cucamonga Street Lighting Maintenance District No. 3 v RANCHO (Victoria Planned Community) CUCAMONGA �---+ o cn CTI =3 fro r 7 N * • • ;�• t 1 UI r Jill •�• ••w Base Line Rd �_�—_-- --- -----� I ,� C C ( fit•• O a • a t�0 0 o I i 0 ; 0 oFoothill BI i 1 Q Q i a3 ro G Legend Arrow Rt Uj Streetlights E j SLD 3 :+rc #at aancno am D as a Poowr reoura d prmeal nanm. 'ne ixy daiarewn.A�e.n..peamrri.rnr,�¢rerrauur��¢,a�arc� � m C!mbt�.amncy,oard.aa��m-eLrc a eery vnzrc�:a ; _ vVa .W „ *AW.•".pm 4 �� ! City Limits rG a meOW b wMy wM a as :i4nrar.� xrcr7 serer. , ■1�1� J ine Cq d R..dw Uearwego 'aw.nt�ax irncau-r.on,�+anv am sa rW Ywr.InO.w: —0,;4 bU rstt ImalaC Lo,ffie InylwO rar-.airtw. 1 of—dwnuW v ad s 1te - 4.d.~AWW n M a Ra:mo dImo(r1o)crw Miles moz aftom a YRm-4a w sb-*---p—dw W.03 ary M-w I.UW�„�m,W P--.0—,Pw me&W-MM.aw�MM�.am., 0.4 0.2 0 0.4 rn ESTIMATE OF COSTS The estimated costs of administration, maintenance, operations, and servicing the improvements as described in the Plans and Specifications are summarized below. Each year, as part of the District levy calculation process, the costs and expenses are reviewed and the annual costs are projected for the following fiscal year. District Budget Fiscal Year 2024/25 Budget Expenditures Personnel Services: Regular Salaries $ 36,170 Fringe Benefits 18,090 Subtotal - Personnel 54,260 Operations and Maintenance: Operations and Maintenance: Training 220 Membership Dues 80 O & IWGeneral 210 Contract Services 8,050 Contract Equipment Maintenance/Repair 30 Subtotal - Operations and Maintenance 8,590 Electric Utilities 154,120 Assessment Administration 24,820 Admin./General Overhead 14,570 Subtotal - Operations and Maintenance 202,100 Transfer Out - General Street Lights Fund 43,370 Total Expenditures Budget $ 299,730 Street Lighting Maintenance District No. 3 — City of Rancho Cucamonga 7 Fiscal Year 2024/25 Fiscal Year 2024/25 Budget Revenues Taxes: Estimated Assessments, Net of Estimated Delinquencies $ 381,410 Anticipated Prior Year Delinquencies Collection 2,730 Total Revenues Budget 384,140 Contribution to/(Use of) Fund Balance $ 84,410 Total Gross Estimated Assessments $ 381,407.64 Total District EBU Count 8,089.24 Actual Assessment per EBU - Fiscal Year 2024/25 $ 47.15 Maximum Allowable Assessment per EBU - Fiscal Year 2024/25 $ 47.15 The maximum allowable assessment per Equivalent Benefit Unit (EBU) listed in the District budget above, is the amount which was approved in Fiscal Year 1996/97 and subsequent District annexations. Each year, prior to the assessments being placed on the tax roll, the City will review the budget and determine the amount needed to maintain the improvements for the upcoming fiscal year. The actual assessment per EBU will be based on the total amount of funds needed to maintain the improvements in a satisfactory and healthy condition. The actual assessment amount may be lower than the maximum allowable assessment; however, it may not exceed the maximum unless the increase is approved by the property owners in accordance with Proposition 218. It is the intent of the City to maintain an Operating Reserve which shall not exceed the estimated costs of maintenance and servicing of the improvements prior to December 10 of the fiscal year, or when the City expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. The reserve balance information for the District is as follows: Operating Reserve Estimated Reserve Fund Balance, June 30, 2024 $ 739,877 Contribution to/(Use of) Reserve- Fiscal Year 2024/25 84,410 Estimated Reserve Fund Balance, June 30, 2025 $ 824,287 Street Lighting Maintenance District No. 3 — City of Rancho Cucamonga 8 Fiscal Year 2024/25 Definitions of Budget Items The following definitions describe the costs and expenses included in the District Budget: Personnel Services: This item includes the costs attributed to the salaries of all full-time and part-time employees dedicated to maintenance of the District improvements. Additionally, this includes benefits available to City employees. Operations and Maintenance: This item includes the costs of City staff to perform maintenance duties within the boundaries of the District. Utilities: This item includes the costs to furnish electricity and telephone services, as required, for the operation and maintenance of the street lights, traffic signals, and appurtenant facilities throughout the District. Assessment Administration: This item includes the cost to all particular departments and staff of the City, and consultants for providing the administration, coordination and management of District services, operations, and incidental expenses related to the District. This item also includes creation of an annual Engineer's Report, resolutions and placing the assessment amounts onto the County tax roll each year, along with responding to any public inquiries and future Proposition 218 balloting proceedings. General Overhead: This item includes the costs of all central services departments of the City for providing the coordination of District services, inspections, annual bid management, responding to public concerns, public education, accounting, auditing and procedural matters associated with the District. This item also includes an allocation for general City staff time for administrative functions and systems that provide for a functional and operational District within the City's administrative structure. Capital Outlay: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include installation of safety lights and other large improvements. Debt Service: . This item includes the repayment of interest and principal to the City General Fund for the acquisition of street lights and installation of LED street lighting within the District. In FY 2021/22, the outstanding balance of the interfund was fully repaid. Transfer Out - General City Street Lights Fund: This item includes the cost for the replacement and installation of District owned street lights. These costs are incurred in the General City Street Lights Fund and reimbursed by the District. Other Revenues: This includes other revenues that are not levied through the annual assessments that support the District operations. These other revenues may include: interest earnings and Developer Energizing Fees. Street Lighting Maintenance District No. 3 — City of Rancho Cucamonga 9 Fiscal Year 2024/25 METHOD OF ASSESSMENT Overview Pursuant to the 1972 Act and Article XIII D, all parcels that have a special benefit conferred upon them as a result of the maintenance and operation of improvements and services shall be identified, and the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entire costs of the maintenance and operation of improvements. The 1972 Act, permits the establishment of assessment districts for the purpose of providing certain public improvements which include the public lighting facilities, including traffic signals. Section 22573 of the 1972 Act requires that maintenance assessments must be levied according to benefit rather than according to assessed value. This Section states: The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefit to be received by each such lot or parcel from the improvements. The determination of whether or not a lot or parcel will benefit from the improvements shall be made pursuant to the Improvement Act of 1911 (Division 7 commencing with Section 5000) [of the Streets and Highways Code, State of California]. Section 22547 of the 1972 Act also permits the designation of zones of benefit within any individual assessment district if "by reasons or variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvement". Article XIII D, Section 4(a) of the California Constitution limits the amount of any assessment to the proportional special benefit conferred on the property. Article XIII D also provides that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment. Exempted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements and rights-of-ways, public greenbelts and public parkways. The net amount to be assessed may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels. Proposition 218, approved by the voters in November 1996, requires the City to separate general benefit from special benefit, where only special benefit is assessed. Street Lighting Maintenance District No. 3 — City of Rancho Cucamonga 10 Fiscal Year 2024/25 Special Benefit The maintenance and servicing of the improvements within the District (which are described in the Description of Improvements and Services Section of this report) are for the benefit of the properties within the District, and as such confer a special and direct benefit to parcels within the District by: • improving the livability, safety, appearance, and desirability for properties within the boundaries of the District, and • ensuring that improvements do not reach a state of deterioration or disrepair so as to be materially detrimental to properties within the District, and • providing for safe vehicular and pedestrian access for properties within the District, and • providing beautification and overall enhancement to properties within the District. The above mentioned items affect the assessed property in a way that is particular and distinct from their effect on other parcels and that real property in general and the public at large do not share. They contribute to a specific enhancement of the properties within the District. Since these improvements were installed and are maintained specifically for the properties within the District; only properties within the District receive a special benefit and are assessed for said maintenance. General Benefit In addition to the special benefits received by parcels within the District, there are derivative general benefits that are conferred on parcels outside the boundaries of the District which include: • the safety and visual enhancement of the area to persons or vehicles that may travel through the District However, it has been determined that these benefits are derivative and do not provide a direct benefit to parcels outside of the district that are not being assessed. Method of Assessment Spread Each of the parcels within the District is deemed to receive special benefit from the improvements. Each parcel that has a special benefit conferred upon it as a result of the maintenance and operation of improvements are identified and the proportionate special benefit derived by each identified parcel is determined in relationship to the entire costs of the maintenance and operation of the improvements. When the District was formed, Article XIII D and Proposition 218 had not yet been passed. Upon the passage of Article XIII D and the subsequent passage of the Proposition Omnibus Implementation Act, new rules were put into place. Due to the changes in legal requirements, as Street Lighting Maintenance District No. 3— City of Rancho Cucamonga 11 Fiscal Year 2024/25 property annexed to the District after the passage of the Assessment Law, the description of the method of assessment became more refined; however, the assessment per parcel has remained the same since Fiscal Year 1996/97. Further, no parcel included in the District formation or annexations prior to when the language was refined, are now being levied differently than they were at the time the District was formed or the parcels were annexed. To assess special benefit appropriately, it is necessary to relate the different type of parcel improvements to each other. The EBU method of apportionment uses the single-family home as the basic unit of assessment. A single-family home equals one Equivalent Dwelling Unit (EBU). Every other land-use is converted to EBUs based on an assessment formula that equates to the property's specific development status, type of development (land-use), and size of the property, as compared to a single-family home. The following table provides the weighting factors applied to various land- use types, as assigned by County use code, to determine each parcel's EBU assignment. Land-Use Equivalent Dwelling Units Property Type (County Use Code EBU Value Multiplier Single Family Residential 1.00 Parcel Multi-FamilyResidential 1.00 Unit Non-Residential 2.00 Acre The use of the latest County Assessor's Secured Roll shall be the basis for the Property Type determination and units/acreage assignments, unless better data is available to the City. In addition, if any parcel within the District is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, the Property Type and EBU assignment shall be based on the correct parcel number and/or new parcel number(s) County use code and subsequent property information. If a single parcel has changed to multiple parcels, the EBU assignment and assessment amount applied to each of the new parcels will be recalculated rather than spread the proportionate share of the original assessment. The following table summarizes the Fiscal Year 2024/25 maximum allowable assessment rates for the District: Maximum Allowable Actual Assessment Asessment Rate Total Property Type (County Use Code Rate per EBU per EBU Units/Acres Total EBUs Single Family Residential $47.15 $47.15 6,843.00 6,843.00 Multi-Family Residential 47.15 47.15 729.00 729.00 Non-Residential 47.15 47.15 258.62 517.24 Street Lighting Maintenance District No. 3 — City of Rancho Cucamonga 12 Fiscal Year 2024/25 The total amount of maintenance and incidental costs for maintaining the street lights and traffic signals is assessed to the individual parcels of real property within the District in proportion to the special benefit received by such parcels of real property. The proposed individual assessments are shown on the assessment roll in this report. ASSESSMENT DIAGRAM An Assessment Diagram for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Assessor of the County San Bernardino, at the time this report was prepared, and are incorporated by reference herein and made part of this Engineer's Report. Street Lighting Maintenance District No. 3— City of Rancho Cucamonga 13 Fiscal Year 2024/25 -n N 0 CD v CD City of Rancho Cucamonga ._..-•---••-.._ ---•--- .,Street Lighting Maintenance District No. 3 RANCHO r..—._�, >� �•>j �'��� ._.._• — —.► ry j C°U"°"G" 1, Q Q�.._ QLj ,! i (Victoria Planned Community) o cQ r 1 Q�� 6 '-•' j .� ErJ Cn aaaaaaaaaawaa_aa__aaa_+�. ��—r i m 1 Q 1 a � N Hillside Rd j Wilson Av �.__.. 0LA U M. Banyan St Z p :` 19th St N."'N > Base Line Rd 1rl Base Line Rd o �i 1 Foothill BI# Foothill BI v W Arrow Rt I Arrow Rt � ' 1 � I 8th St: end Oth A Le 1 � 9 w > 4th StyL. 4th St L-j City Limits q.."Ok Cm.+an. ar>r... > > > > > > > SLD 3 ercnnra�r<c,..r.mpa•t-�saare-w-ry.rre..�.. Q ¢ Q Q Q ¢ ¢ :larmnncc�.c..op.-ran.�/..r—..yc.n�easp•.rr. C 'D_ C c me unct w.aae aa:x a.....-ar uarr-e w al..ra. Pottle¢b ra. lb aa.lrll a ray 9--ya b aaa E O > y,a a.1 a tliritZ nap.i.►r.M a.-a all Irb.ra.aura ar. anew Cuo^a•�anM-a.est rrr Yman w ae m � N f0 aR�.rz a.nrr rare nr a:rr a-.w.a,.aner y�:+eter era.r.s.r a A.o.r oval wa 4 r awrn�'_�awo-a = sil --. -a..a...�..-ar r�.�„�.,.. . Q = Miles a amaaaa a ar nar-.ab swm wale nt am rtco u 1.5 0.75 a 1.5 Y ASSESSMENT ROLL AND ANNEXATIONS Assessment Roll The assessment roll is a listing of the assessment for Fiscal Year 2024/25 apportioned to each lot or parcel, as shown on the last equalized roll of the Assessor of the County of San Bernardino. The following table summarizes the Fiscal Year 2024/25 actual assessments for the District: Actual Assessment Total Property Type (County Use Code) Rate per EBU Units/Acres Total EBUs Total Assessment Single Family Residential $47.15 6,843.00 6,843.00 $322,647.45 Multi-Family Residential 47.151 729.001 729.001 34,372.35 Non-Residential 47.15 258.62 517.24 24,387.84 Totals 7,830.62 8,089.241 $381,407.64 A copy of the full assessment roll is available for review in the City Clerk's office. Annexations There are no effective annexations for Fiscal Year 2024/25. Street Lighting Maintenance District No. 3 — City of Rancho Cucamonga 15 Fiscal Year 2024/25 Annual Engineer's Report Fiscal Year 2024/25 City of Rancho Cucamonga Street Lighting Maintenance District No. 4 (Terra Vista Planned Community) ATTACHMENT 13 CITY OF RANCHO CUCAMONGA STREET LIGHTING MAINTENANCE DISTRICT NO. 4 (TERRA VISTA PLANNED COMMUNITY) 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909.477.2700 Fax: 909.477.2845 CITY COUNCIL L. Dennis Michael, Mayor Lynne B. Kennedy, Mayor Pro Tern Ryan A. Hutchison, Council Member Kristine D. Scott, Council Member Ashley N. Stickler, Council Member CITY STAFF John R. Gillison, City Manager Elisa Cox, Assistant City Manager Jason C. Welday, Director of Engineering Services/City Engineer Micah Martin, Public Works Director Noah Daniels, Finance Director TABLE OF CONTENTS ENGINEER'S LETTER 1 INTRODUCTION 3 Reason for Assessment 3 Process for Annual Assessment 3 PLANS AND SPECIFICATIONS 4 Description of the Boundaries of the District 4 Description of Improvements and Services 4 Map of Improvements 5 ESTIMATE OF COSTS 7 District Budget 7 Definitions of Budget Items 9 METHOD OF ASSESSMENT 10 Overview 10 Special Benefit 11 General Benefit 11 Method of Assessment Spread 11 ASSESSMENT DIAGRAM 13 ASSESSMENT ROLL AND ANNEXATIONS 15 Assessment Roll 15 Annexations 15 ENGINEER'S LETTER WHEREAS, on June 5, 2024, the City Council of Rancho Cucamonga (the "City"), under the Landscaping and Lighting Act of 1972 (the "1972 Act") adopted its Resolution No. 2024-049, a Resolution Initiating Proceedings for the Levy of Annual Assessments for Street Light Maintenance District No. 4 (Terra Vista Planned Community) (the "District"); and WHEREAS, the Resolution Initiating Proceedings directed the City Engineer to prepare and file an Annual Engineer's Report for Fiscal Year 2024/25 pursuant to the requirements of the 1972 Act. The Annual Engineer's Report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the maintenance, operations and servicing of the improvements for the District for the referenced fiscal year, a diagram for the District, showing the area and properties proposed to be assessed, and an assessment of the estimated costs of the maintenance, operations and servicing of the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received; and NOW THEREFORE, the following assessment is proposed to be authorized in order to pay for the acquisition of street lights, the installation of Light Emitting Diode (LED) street lighting, and estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the boundaries of the District in proportion to the special benefit received. The following table summarizes the proposed assessment. Fiscal Year 2024/25 Budget Expenditures Personnel Services $ 55,470 Operations and Maintenance 105,110 Debt Service 11,220 Transfer Out 20,130 Total Expenditures Budget 191,930 Revenues Taxes: Estimated Assessments, Net of Estimated Delinquencies 166,400 Anticipated Prior Year Delinquencies Collection 730 Total Revenues Budget 167,130 Contribution to/(Use of) Fund Balance $ (24,800) Total District EBU Count 5,745.78 Actual Assessment per EBU $ 28.96 Maximum Allowable Assessment per EBU $ 28.96 Street Lighting Maintenance District No. 4— City of Rancho Cucamonga 1 Fiscal Year 2024/25 In making the assessments contained herein pursuant to the 1972 Act: 1. I have identified all parcels which will have a special benefit conferred upon them from the improvement described in the Special Benefit Section of this Annual Engineer's Report (the "Specially Benefited Parcels"). For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is included in this Annual Engineer's Report. 2. 1 have evaluated the costs and expenses of the improvements upon the Specially Benefited Parcels. In making such evaluation: a. The proportionate special benefit derived by each Specially Benefited Parcel from the improvements was determined in relationship to the entirety of the maintenance costs of the improvements; b. No assessment has been imposed on any Specially Benefited Parcel which exceeds the reasonable cost of the proportional special benefit conferred on such parcel from the improvements; and c. Any general benefits from the improvements have been separated from the special benefits and only special benefits have been assessed. I, the undersigned, respectfully submit the enclosed Annual Engineer's Report and, to the best of my knowledge, information and belief, I certify that the Annual Engineer's Report and Assessment Diagram included herein have been prepared and computed in accordance with the order of the City Council of the City of Rancho Cucamonga and the Assessment Law. R*f ESStpy ���0 SON Wf��9 Fy * No.67514 * 07/17/2024 Jason C. Welday Date F ch�0 Director of Engineering Services/City Engineer Street Lighting Maintenance District No. 4— City of Rancho Cucamonga 2 Fiscal Year 2024/25 INTRODUCTION Reason for Assessment Approval of the assessment covered by this Engineer's Report will generate the revenue necessary to: Provide for the maintenance and servicing of the improvements described in this Engineer's Report. Maintenance may include but is not limited to, all of the following: the upkeep, repair, removal or replacement of all or any part of any improvement. Servicing means the furnishing of electricity, gas or other illuminating energy for the lighting or appurtenant facilities. This shall also include material, vehicle, equipment, capital improvements, the installation of LED street lighting, and administrative costs associated with the annual administration and operation of the District. Process for Annual Assessment The City cannot levy and collect annual assessments within the District without complying with the procedures specified in the 1972 Act. On an annual basis, an Engineer's Report must be prepared which contains a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. The City Council must also adopt a resolution of intention which: • Declares the intention of the City Council to levy and collect assessments within the District for the fiscal year stated therein. • Generally describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements. • Refers to the District by its distinctive designation and indicate the general location of the District. • Refers to the Engineer's Report, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. • Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment. • States whether the assessment is proposed to increase from the previous year. If the assessments are to be levied in the same or lesser amounts than the maximum assessment amount approved, the City Clerk shall give notice by causing the resolution of intention to be published. Any interested person may, prior to the conclusion of the public hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. Street Lighting Maintenance District No. 4— City of Rancho Cucamonga 3 Fiscal Year 2024/25 During the course or upon conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including the improvements, to the zones within the District, and the proposed diagram or the proposed assessment. The City Council, upon conclusion of the public hearing must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the assessment. If the assessment to be levied exceeds the maximum assessment amount previously approved, the City must comply with the procedures specified in Article XIII D and Proposition 218. The voters in the State of California in November 1996 added Article XIII D to the California Constitution imposing, among other requirements, the necessity for the City to conduct an assessment ballot procedure to enable the owners of each property on which assessments are proposed to be enacted or increased, the opportunity to express their support for, or opposition to, the proposed assessment or increase in such assessment. PLANS AND SPECIFICATIONS The District provides for the administration, maintenance, operations, and servicing of various improvements located within the public right-of-way and dedicated easements within the boundaries of the District. Description of the Boundaries of the District The District is located in the City of Rancho Cucamonga, State of California. The boundaries of the District are generally described as that area of the City known as the Terra Vista Planned Community, which is located north of Foothill Blvd, west of Rochester Ave, east of Haven Ave, south of Base Line Rd and includes the northeast corner of Base Line Rd and Haven Ave. Reference is also made to the Assessment Diagram included in this Report. Description of Improvements and Services The improvements are the maintenance and servicing of street lights, traffic signals and appurtenant facilities throughout the District. The maintenance and servicing includes, but is not limited to, furnishing electric current for public lighting facilities including street lights and traffic signals, and associated appurtenant facilities. Services include personnel, materials, contracting services, utilities, and all necessary costs associated with the maintenance, replacement and repair required to keep the improvements in operational and satisfactory condition. In addition, it is the City's intention to continue to use cost effective materials, in order to lower expenses of the District. In Fiscal Year 2017/18, the acquisition by the City of the street lights and installation of LED street lighting specially benefiting the properties within the District has been added to the improvements. Street Lighting Maintenance District No. 4— City of Rancho Cucamonga 4 Fiscal Year 2024/25 Map of Improvements The following page shows the map of street light and traffic signal improvements to be maintained using District funds. Street Lighting Maintenance District No. 4— City of Rancho Cucamonga 5 Fiscal Year 2024/25 SZ/t,ZOZ JeeA leosid g e6umeono oyoue�j jo Aj!O -V 'ON 10uIsia aoueualuieW 6u4gb1-j 199JIS �IAI$tI aRijirg �giA�e �a O s # A Haven Av 0 go 00 go fA •• • :s i i• •� • n4 Lis /(t • . . .. • % • .Go • .. i _ !; • ! it . _ • • •••• � • • � . ••w.. W . . Z . •• .0 0; . • .;• ; : . •• •.•• ••• .. . . • _. •... . . . .•_ .•.. • rp •• .. •• ' ' : 0 Milliken Av • • .� .• '•i 0 ••. rat • • ? ... . rt .�ti •' •'• • • (D rt • .• . •. .s. .. . . • go' Can 1r0G.• • • • •..• • o %�•• • •. ••• •. �•i �. .� 0 1. • r7t G 00 o • • .•...•. • o.. ... .�... .•.•. • A A Rochester Av CL v O rt 3 A . _ a ornn � zo N� - 0 ESTIMATE OF COSTS The estimated costs of administration, maintenance, operations, and servicing the improvements as described in the Plans and Specifications are summarized below. Each year, as part of the District levy calculation process, the costs and expenses are reviewed and the annual costs are projected for the following fiscal year. District Budget Fiscal Year 2024/25 Budget Expenditures Personnel Services: Regular Salaries $ 36,980 Fringe Benefits 18,490 Subtotal - Personnel 55,470 Operations and Maintenance: Operations and Maintenance: Training 220 Membership Dues 80 O & M/General 1,120 Contract Services 3,730 Contract Equipment Maintenace/Repair 110 Subtotal - Operations and Maintenance 5,260 Utilities: Electric Utilities 72,770 Assessment Administration 14,420 Admin./General Overhead 12,660 Subtotal - Operations and Maintenance 105,110 Debt Service: Interest Expense 1,360 Principal Repayments 9,860 Subtotal - Debt Service 11,220 Transfer Out - General City Street Lights Fund 20,130 Total Expenditures Budget $ 191,930 Street Lighting Maintenance District No. 4 — City of Rancho Cucamonga 7 Fiscal Year 2024/25 Fiscal Year 2024/25 Budget Revenues Taxes: Estimated Assessments, Net of Estimated Delinquencies $ 166,400 Anticipated Prior Year Delinquencies Collection 730 Total Revenues Budget 167,130 Contribution to/(Use of) Fund Balance $ (24,800) Total Gross Estimated Assessments $ 166,397.79 Total District EBU Count 5,745.78 Actual Assessment per EBU - Fiscal Year 2024/25 $ 28.96 Maximum Allowable Assessment per EBU - Fiscal Year 2024/25 $ 28.96 The maximum allowable assessment per Equivalent Benefit Unit (EBU) listed in the District budget above, is the amount which was approved in Fiscal Year 1996/97 and subsequent District annexations. Each year, prior to the assessments being placed on the tax roll, the City will review the budget and determine the amount needed to maintain the improvements for the upcoming fiscal year. The actual assessment per EBU will be based on the total amount of funds needed to maintain the improvements in a satisfactory and healthy condition. The actual assessment amount may be lower than the maximum allowable assessment; however, it may not exceed the maximum unless the increase is approved by the property owners in accordance with Proposition 218. It is the intent of the City to maintain an Operating Reserve which shall not exceed the estimated costs of maintenance and servicing of the improvements prior to December 10 of the fiscal year, or when the City expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. The reserve balance information for the District is as follows: Operating Reserve Estimated Reserve Fund Balance, June 30, 2024 $ 92,984 Contribution to/(Use of) Reserve - Fiscal Year 2024/25 (24,800) Estimated Reserve Fund Balance, June 30, 2025 $ 68,184 Street Lighting Maintenance District No. 4— City of Rancho Cucamonga 8 Fiscal Year 2024/25 Definitions of Budget Items The following definitions describe the costs and expenses included in the District Budget: Personnel Services: This item includes the costs attributed to the salaries of all full-time and part-time employees dedicated to maintenance of the District improvements. Additionally, this includes benefits available to City employees. Operations and Maintenance: This item includes the costs of City staff to perform maintenance duties within the boundaries of the District. Utilities: This item includes the costs to furnish electricity and telephone services, as required, for the operation and maintenance of the street lights, traffic signals, and appurtenant facilities throughout the District. Assessment Administration: This item includes the cost to all particular departments and staff of the City, and consultants for providing the administration, coordination and management of District services, operations, and incidental expenses related to the District. This item also includes creation of an annual Engineer's Report, resolutions and placing the assessment amounts onto the County tax roll each year, along with responding to any public inquiries and future Proposition 218 balloting proceedings. General Overhead: This item includes the costs of all central services departments of the City for providing the coordination of District services, inspections, annual bid management, responding to public concerns, public education, accounting, auditing and procedural matters associated with the District. This item also includes an allocation for general City staff time for administrative functions and systems that provide for a functional and operational District within the City's administrative structure. Capital Outlay: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include installation of safety lights and other large improvements. Debt Service: This item includes the repayment of interest and principal to the City Capital Reserve Fund for the acquisition of street lights and installation of LED street lighting within the District. Transfer Out - General City Street Lights Fund: This item includes the cost for the replacement and installation of District owned street lights. These costs are incurred in the General City Street Lights Fund and reimbursed by the District. Other Revenues: This includes other revenues that are not levied through the annual assessments that support the District operations. These other revenues may include: interest earnings and Developer Energizing Fees. Street Lighting Maintenance District No. 4— City of Rancho Cucamonga 9 Fiscal Year 2024/25 METHOD OF ASSESSMENT Overview Pursuant to the 1972 Act and Article XIII D, all parcels that have a special benefit conferred upon them as a result of the maintenance and operation of improvements and services shall be identified, and the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entire costs of the maintenance and operation of improvements. The 1972 Act, permits the establishment of assessment districts for the purpose of providing certain public improvements which include the public lighting facilities, including traffic signals. Section 22573 of the 1972 Act requires that maintenance assessments must be levied according to benefit rather than according to assessed value. This Section states: The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefit to be received by each such lot or parcel from the improvements. The determination of whether or not a lot or parcel will benefit from the improvements shall be made pursuant to the Improvement Act of 1911 (Division 7 commencing with Section 5000) [of the Streets and Highways Code, State of California]. Section 22547 of the 1972 Act also permits the designation of zones of benefit within any individual assessment district if "by reasons or variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvement". Article XIII D, Section 4(a) of the California Constitution limits the amount of any assessment to the proportional special benefit conferred on the property. Article XIII D also provides that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment. Exempted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements and rights-of-ways, public greenbelts and public parkways. The net amount to be assessed may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels. Proposition 218, approved by the voters in November 1996, requires the City to separate general benefit from special benefit, where only special benefit is assessed. Street Lighting Maintenance District No. 4— City of Rancho Cucamonga 10 Fiscal Year 2024/25 Special Benefit The maintenance and servicing of the improvements within the District (which are described in the Description of Improvements and Services Section of this report) are for the benefit of the properties within the District, and as such confer a special and direct benefit to parcels within the District by: • improving the livability, safety, appearance, and desirability for properties within the boundaries of the District, and • ensuring that improvements do not reach a state of deterioration or disrepair so as to be materially detrimental to properties within the District, and • providing for safe vehicular and pedestrian access for properties within the District, and • providing beautification and overall enhancement to properties within the District. The above mentioned items affect the assessed property in a way that is particular and distinct from their effect on other parcels and that real property in general and the public at large do not share. They contribute to a specific enhancement of the properties within the District. Since these improvements were installed and are maintained specifically for the properties within the District; only properties within the District receive a special benefit and are assessed for said maintenance. General Benefit In addition to the special benefits received by parcels within the District, there are derivative general benefits that are conferred on parcels outside the boundaries of the District which include: • the safety and visual enhancement of the area to persons or vehicles that may travel through the District However, it has been determined that these benefits are derivative and do not provide a direct benefit to parcels outside of the district that are not being assessed. Method of Assessment Spread Each of the parcels within the District is deemed to receive special benefit from the improvements. Each parcel that has a special benefit conferred upon it as a result of the maintenance and operation of improvements are identified and the proportionate special benefit derived by each identified parcel is determined in relationship to the entire costs of the maintenance and operation of the improvements. When the District was formed, Article XIII D and Proposition 218 had not yet been passed. Upon the passage of Article XIII D and the subsequent passage of the Proposition Omnibus Implementation Act, new rules were put into place. Due to the changes in legal requirements, as Street Lighting Maintenance District No. 4— City of Rancho Cucamonga 11 Fiscal Year 2024/25 property annexed to the District after the passage of the Assessment Law, the description of the method of assessment became more refined; however, the assessment per parcel has remained the same since Fiscal Year 1996/97. Further, no parcel included in the District formation or annexations prior to when the language was refined, are now being levied differently than they were at the time the District was formed or the parcels were annexed. To assess special benefit appropriately, it is necessary to relate the different type of parcel improvements to each other. The EBU method of apportionment uses the single-family home as the basic unit of assessment. A single-family home equals one Equivalent Dwelling Unit (EBU). Every other land-use is converted to EBUs based on an assessment formula that equates to the property's specific development status, type of development (land-use), and size of the property, as compared to a single-family home. The following table provides the weighting factors applied to various land- use types, as assigned by County use code, to determine each parcel's EBU assignment. Land-Use Equivalent Dwelling Units Property Type (County Use Code) EBU Value Multiplier Single Family Residential 1.00 Parcel Multi-Family Residential 0.50 Unit Non-Residential 2.00 Acre The use of the latest County Assessor's Secured Roll shall be the basis for the Property Type determination and units/acreage assignments, unless better data is available to the City. In addition, if any parcel within the District is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, the Property Type and EBU assignment shall be based on the correct parcel number and/or new parcel number(s) County use code and subsequent property information. If a single parcel has changed to multiple parcels, the EBU assignment and assessment amount applied to each of the new parcels will be recalculated rather than spread the proportionate share of the original assessment. The following table summarizes the Fiscal Year 2024/25 maximum allowable assessment rates for the District: Maximum Allowable Actual Assessment Asessment Rate Total Property Type (County Use Code) Rate per EBU per EBU Units/Acres Total EBUs Single Family Residential $28.96 $28.96 2,652.00 2,652.00 Multi-Family Residential 28.96 28.96 5,250.00 2,625.00 Non-Residential 28.96 28.961 234.391 468.78 Street Lighting Maintenance District No. 4— City of Rancho Cucamonga 12 Fiscal Year 2024/25 The total amount of maintenance and incidental costs for maintaining the streetlights and traffic signals is assessed to the individual parcels of real property within the District in proportion to the special benefit received by such parcels of real property. The proposed individual assessments are shown on the assessment roll in this report. ASSESSMENT DIAGRAM An Assessment Diagram for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Assessor of the County San Bernardino, at the time this report was prepared, and are incorporated by reference herein and made part of this Engineer's Report. Street Lighting Maintenance District No. 4— City of Rancho Cucamonga 13 Fiscal Year 2024/25 -n (n Fn- - CD v CD City of Rancho Cucamonga � RANCHO ••-•-•---••-•; ;- ,.•Y___.__, _,_.._..,Street Lighting Maintenance District No. 4 N °^~� a �• Q � .._ �� , i (Terra Vista Planned Community) CDcl 1 Q E EQj CD =3 ' Q 0) $ Hillside RdCD _ � Ae Wilson Av c w S._—.. Banyan St :♦ f a4 B Z �♦ o ° 19th St n Q Base Line Rd 4 ® U X Base Line Rd o c Foothill Bl# ' Foothill BI I 3 Arrow Rt Arrow Rt o 8th Stti••___M-.• � Q OthS� Legend L w S 4th StL_M__-M..M_ 4th St IL__j city Limits �s i1 M aY'1A.!...str.l'.••�s'1••_A.ss_y > > > > > > > Yuvrr.s.ao.r....rnr•.rc_.:rPrru.r. Q Q Q Q Q Q Q SLD 4 �•OanrYOiobep r_r Arseirti wpsw•e.aprre N 10 a r Y mblK r...r.�e•M•r.a Yrrs r a.� IA ptlr b.s••.\h_fbYY�_Yrb�rrw G > y r.e�arw r w+_ry+a er r r wr..rb�s rr _ V1 r as.•w.u.ca..p.w.r r_rr_rur.w r r = L 3 -ws•rsvm..r...rR wr~a w a rr•a Y b.r.r.s r ins*tea r n. r a mom P.P—.r at,r gyros o�ar� � � � � Mlles •s..•a,�•••F a os b•w.µ 4+-r r o.rr•b A F wi x'ims�•_•tlb\i w—r.ws.w+4r(4 ..o. �w r.b W 6 _ N—w.r W—A...re ra 1.5 0.75 0 1.5 ASSESSMENT ROLL AND ANNEXATIONS Assessment Roll The assessment roll is a listing of the assessment for Fiscal Year 2024/25 apportioned to each lot or parcel, as shown on the last equalized roll of the Assessor of the County of San Bernardino. The following table summarizes the Fiscal Year 2024/25 actual assessments for the District: Actual Assessment Total Propert T e (Count Use Code) Rate per EBU Units/Acres Total EBUs Total Assessment Single Family Residential $28.96 2,652.00 2,652.00 $76,801.92 Multi-Family Residential 28.96 5,250.00 2,625.00 76,020.00 Non-Residential 28.96 234.39 468.78 13,575.87 Totals 8,136.39 5,745.78 $166,397.79 A copy of the full assessment roll is available for review in the City Clerk's office. Annexations There are no effective annexations for Fiscal Year 2024/25. Street Lighting Maintenance District No. 4— City of Rancho Cucamonga 15 Fiscal Year 2024/25 Annual Engineer's Report Fiscal Year 2024125 City of Rancho Cucamonga Street Lighting Maintenance District No. 5 (Caryn Planned Community) ATTACHMENT 14 CITY OF RANCHO CUCAMONGA STREET LIGHTING MAINTENANCE DISTRICT NO. 5 (CARYN PLANNED COMMUNITY) 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909.477.2700 Fax: 909.477.2845 CITY COUNCIL L. Dennis Michael, Mayor Lynne B. Kennedy, Mayor Pro Tern Ryan A. Hutchison, Council Member Kristine D. Scott, Council Member Ashley N. Stickler, Council Member CITY STAFF John R. Gillison, City Manager Elisa Cox, Assistant City Manager Jason C. Welday, Director of Engineering Services/City Engineer Micah Martin, Public Works Director Noah Daniels, Finance Director TABLE OF CONTENTS ENGINEER'S LETTER 1 INTRODUCTION 3 Reason for Assessment 3 Process for Annual Assessment 3 PLANS AND SPECIFICATIONS 4 Description of the Boundaries of the District 4 Description of Improvements and Services 4 Map of Improvements 5 ESTIMATE OF COSTS 7 District Budget 7 Definitions of Budget Items 9 METHOD OF ASSESSMENT 10 Overview 10 Special Benefit 11 General Benefit 11 Method of Assessment Spread 11 ASSESSMENT DIAGRAM 13 ASSESSMENT ROLL AND ANNEXATIONS 15 Assessment Roll 15 Annexations 15 ENGINEER'S LETTER WHEREAS, on June 5, 2024, the City Council of Rancho Cucamonga (the "City"), under the Landscaping and Lighting Act of 1972 (the "1972 Act") adopted its Resolution No. 2024-049, a Resolution Initiating Proceedings for the Levy of Annual Assessments for Street Light Maintenance District No. 5 (Caryn Planned Community) (the "District"); and WHEREAS, the Resolution Initiating Proceedings directed the City Engineer to prepare and file an Annual Engineer's Report for Fiscal Year 2024/25 pursuant to the requirements of the 1972 Act. The Annual Engineer's Report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the maintenance, operations and servicing of the improvements for the District for the referenced fiscal year, a diagram for the District, showing the area and properties proposed to be assessed, and an assessment of the estimated costs of the maintenance, operations and servicing of the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received; and NOW THEREFORE, the following assessment is proposed to be authorized in order to pay for the acquisition of street lights, the installation of Light Emitting Diode (LED) street lighting, and estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the boundaries of the District in proportion to the special benefit received. The following table summarizes the proposed assessment. Fiscal Year 2024/25 Budget Expenditures Operations and Maintenance 43,570 Transfer Out 9,560 Total Expenditures Budget 53,130 Revenues Taxes: Estimated Assessments, Net of Estimated Delinquencies 44,150 Anticipated Prior Year Delinquencies Collection 490 Subtotal - Taxes 44,640 Transfer In - General Fund 22,040 Total Revenues Budget 66,680 Contribution to/(Use of) Fund Balance $ 13,550 Total District EBU Count 1,276.00 Actual Assessment per EBU $ 34.60 Maximum Allowable Assessment per EBU $ 34.60 Street Lighting Maintenance District No. 5— City of Rancho Cucamonga 1 Fiscal Year 2024/25 In making the assessments contained herein pursuant to the 1972 Act: 1. I have identified all parcels which will have a special benefit conferred upon them from the improvement described in the Special Benefit Section of this Annual Engineer's Report (the "Specially Benefited Parcels"). For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is included in this Annual Engineer's Report. 2. 1 have evaluated the costs and expenses of the improvements upon the Specially Benefitted Parcels. In making such evaluation: a. The proportionate special benefit derived by each Specially Benefited Parcel from the improvements was determined in relationship to the entirety of the maintenance costs of the improvements; b. No assessment has been imposed on any Specially Benefited Parcel which exceeds the reasonable cost of the proportional special benefit conferred on such parcel from the improvements; and c. Any general benefits from the improvements have been separated from the special benefits and only special benefits have been assessed. I, the undersigned, respectfully submit the enclosed Annual Engineer's Report and, to the best of my knowledge, information and belief, I certify that the Annual Engineer's Report, and Assessment Diagram included herein have been prepared and computed in accordance with the order of the City Council of the City of Rancho Cucamonga and the Assessment Law. QROEESS/pyq * No.67514 * 07/17/2024 9,f c,v 1 ova/ Jason C. Welday Date of cnt`F Director of Engineering Services/City Engineer Street Lighting Maintenance District No. 5— City of Rancho Cucamonga 2 Fiscal Year 2024/25 INTRODUCTION Reason for Assessment Approval of the assessment covered by this Engineer's Report will generate the revenue necessary to: Provide for the maintenance and servicing of the improvements described in this Engineer's Report. Maintenance may include but is not limited to, all of the following: the upkeep, repair, removal or replacement of all or any part of any improvement. Servicing means the furnishing of electricity, gas or other illuminating energy for the lighting or appurtenant facilities. This shall also include material, vehicle, equipment, capital improvements, the installation of LED street lighting, and administrative costs associated with the annual administration and operation of the District. Process for Annual Assessment The City cannot levy and collect annual assessments within the District without complying with the procedures specified in the 1972 Act. On an annual basis, an Engineer's Report must be prepared which contains a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. The City Council must also adopt a resolution of intention which: • Declares the intention of the City Council to levy and collect assessments within the District for the fiscal year stated therein. • Generally describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements. • Refers to the District by its distinctive designation and indicate the general location of the District. • Refers to the Engineer's Report, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. • Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment. • States whether the assessment is proposed to increase from the previous year. If the assessments are to be levied in the same or lesser amounts than the maximum assessment amount approved, the City Clerk shall give notice by causing the resolution of intention to be published. Any interested person may, prior to the conclusion of the public hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. Street Lighting Maintenance District No. 5— City of Rancho Cucamonga 3 Fiscal Year 2024/25 During the course or upon conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including the improvements, to the zones within the District, and the proposed diagram or the proposed assessment. The City Council, upon conclusion of the public hearing must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the assessment. If the assessment to be levied exceeds the maximum assessment amount previously approved, the City must comply with the procedures specified in Article XIII D and Proposition 218. The voters in the State of California in November 1996 added Article XIII D to the California Constitution imposing, among other requirements, the necessity for the City to conduct an assessment ballot procedure to enable the owners of each property on which assessments are proposed to be enacted or increased, the opportunity to express their support for, or opposition to, the proposed assessment or increase in such assessment. PLANS AND SPECIFICATIONS The District provides for the administration, maintenance, operations, and servicing of various improvements located within the public right-of-way and dedicated easements within the boundaries of the District. Description of the Boundaries of the District The District is located in the City of Rancho Cucamonga. The boundaries of the District are generally described as that area located north of the 210 Freeway, south of Banyan St, west of Rochester Ave and east of Milliken Ave, also known as the Caryn Planned Community. The boundaries also include Tract No. 13835 east of Rochester Ave and Tracts No. 13748, 13857 and 13858 west of Milliken Ave. Reference is also made to the Assessment Diagram included in this Report. Description of Improvements and Services The improvements are the maintenance and servicing of street lights, traffic signals and appurtenant facilities throughout the District. The maintenance and servicing includes, but is not limited to, furnishing electric current for public lighting facilities including street lights and traffic signals, and associated appurtenant facilities. Services include personnel, materials, contracting services, utilities, and all necessary costs associated with the maintenance, replacement and repair required to keep the improvements in operational and satisfactory condition. In addition, it is the City's intention to continue to use cost effective materials, in order to lower expenses of the District. In Fiscal Year 2017/18, the acquisition by the City of the street lights and installation of LED street lighting specially benefiting the properties within the District has been added to the improvements. Street Lighting Maintenance District No. 5— City of Rancho Cucamonga 4 Fiscal Year 2024/25 Map of Improvements The following page shows the map of street light and traffic signal improvements to be maintained using District funds. Street Lighting Maintenance District No. 5 — City of Rancho Cucamonga 5 Fiscal Year 2024/25 mcn 0) City of Rancho Cucamonga m '. J Street Lighting Maintenance District No. 5 CD cc RANCHO (Caryn Planned Community) o cc > N O , CD Banyan St CD Fn 0 . • • • • Z . • • • • • • • . • • • • • • • • • Cn • • • • • • • • • • • • I K I . . . • • • • . • • • . • • O i •• . •• • • •••. • . . • • • • • • • • . . • . • • . •. . • N • • • ~ • 0• • • • • •• • • • •• • • •• •• • • ••• O ( •� • •� • • • • .• •• • • • • • • •• • • • ••• • •• •• ••• • . • • • • I . • O IWI cn O � Q � Legend • Streetlights SLD 5 -ne.:.n a wrcrr:...aRmw.>rz;�rerani.,a cudr r..:wre a acvey it meim t>r Lh_a as�t�::u-a»Y rra/.et ray+'Rbt�o+u+atY.+D'�'t+Y.rtl;:n o 9xranee n[o Cr:i:rE.eM.�n:uerre.r_uxY.:o'mlcrii�.:r urdine•:,dam 4ebn'n'.v.H ;1�� ��„ � �., �� .,�� tY,�, �br a�Y� ■ City Limits .re .. eeo :� bweraenr:v , N 1 ;acTnt ;resnx�c n�wr. ■I�1 r the lcrLuf fbxlx,:.u.siror'ra tafdv-1tY an:Htaw[Irn�.r�+Jr�'arn:a,r aitl a1 �raxmrlm:a�raranwe: in-:udrt,w na Imn.n ro.me�arc,.a _. K TerthaiKWry a-tl•rncn'sr a Lark'�s;�r-vur�a<.IFe .Ily x Vswto c�aa�p� Miles ♦ti, anY� r>xn,Qr�'tl!C a'�G'd;ii�.YiJ«tiH . 0.1 O.OJ C rvc.F a:rvi esn ro aM�peY'm ..�Mr[.•e.t�1v}r�rr awltax 0 0- ESTIMATE OF COSTS The estimated costs of administration, maintenance, operations, and servicing the improvements as described in the Plans and Specifications are summarized below. Each year, as part of the District levy calculation process, the costs and expenses are reviewed and the annual costs are projected for the following fiscal year. District Budqet Fiscal Year 2024/25 Budget Expenditures Operations and Maintenance: Contract Services 1,770 Utilities: Electric Utilities 34,580 Assessment Administration 4,570 Admin./General Overhead 2,650 Subtotal - Operations and Maintenance 43,570 Transfer Out - General Street Lights Fund 9,560 Total Expenditures Budget $ 53,130 Fiscal Year 2024/25 Budget Revenues Taxes: Estimated Assessments, Net of Estimated Delinquencies $ 44,150 Anticipated Prior Year Delinquencies Collection 490 Subtotal -Taxes 44,640 Transfer In Transfer In - General Fund 22,040 Total Revenues Budget 66,680 Contribution to/(Use of) Fund Balance $ 13,550 Total Gross Estimated Assessments $ 44,149.60 Total District EBU Count 1,276.00 Actual Assessment per EBU - Fiscal Year 2024/25 $ 34.60 Maximum Allowable Assessment per EBU - Fiscal Year 2024/25 $ 34.60 Street Lighting Maintenance District No. 5— City of Rancho Cucamonga 7 Fiscal Year 2024/25 The maximum allowable assessment per Equivalent Benefit Unit (EBU) listed in the District budget above, is the amount which was approved in Fiscal Year 1996/97 and subsequent District annexations. Each year, prior to the assessments being placed on the tax roll, the City will review the budget and determine the amount needed to maintain the improvements for the upcoming fiscal year. The actual assessment per EBU will be based on the total amount of funds needed to maintain the improvements in a satisfactory and healthy condition. The actual assessment amount may be lower than the maximum allowable assessment; however, it may not exceed the maximum unless the increase is approved by the property owners in accordance with Proposition 218. It is the intent of the City to maintain an Operating Reserve which shall not exceed the estimated costs of maintenance and servicing of the improvements prior to December 10 of the fiscal year, or when the City expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. The reserve balance information for the District is as follows: Operating Reserve Estimated Reserve Fund Balance, June 30, 2024 $ (81,551) Contribution to/(Use of) Reserve - Fiscal Year 2024/25 13,550 Estimated Reserve Fund Balance, June 30, 2025 $ (68,001) Street Lighting Maintenance District No. 5— City of Rancho Cucamonga 8 Fiscal Year 2024/25 Definitions of Budget Items The following definitions describe the costs and expenses included in the District Budget: Personnel Services: This item includes the costs attributed to the salaries of all full-time and part-time employees dedicated to maintenance of the District improvements. Additionally, this includes benefits available to City employees. Operations and Maintenance: This item includes the costs of City staff to perform maintenance duties within the boundaries of the District. Utilities: This item includes the costs to furnish electricity and telephone services, as required, for the operation and maintenance of the street lights, traffic signals, and appurtenant facilities throughout the District. Assessment Administration: This item includes the cost to all particular departments and staff of the City, and consultants for providing the administration, coordination and management of District services, operations, and incidental expenses related to the District. This item also includes creation of an annual Engineer's Report, resolutions and placing the assessment amounts onto the County tax roll each year, along with responding to any public inquiries and future Proposition 218 balloting proceedings. General Overhead: This item includes the costs of all central services departments of the City for providing the coordination of District services, inspections, annual bid management, responding to public concerns, public education, accounting, auditing and procedural matters associated with the District. This item also includes an allocation for general City staff time for administrative functions and systems that provide for a functional and operational District within the City's administrative structure. Capital Outlay: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include installation of safety lights and other large improvements. Debt Service: This item includes the repayment of interest and principal to the City Capital Reserve Fund for the acquisition of street lights and installation of LED street lighting within the District. In Fiscal Year 2023/24, the debt service has been suspended due to the structural operating deficit and will be routinely monitored. Transfer Out - General City Street Lights Fund: This item includes the cost for the replacement and installation of District owned street lights. These costs are incurred in the General City Street Lights Fund and reimbursed by the District. Street Lighting Maintenance District No. 5— City of Rancho Cucamonga 9 Fiscal Year 2024/25 Other Revenues: This includes other revenues that are not levied through the annual assessments that support the District operations. These other revenues may include: interest earnings and Developer Energizing Fees. METHOD OF ASSESSMENT Overview Pursuant to the 1972 Act and Article XIII D, all parcels that have a special benefit conferred upon them as a result of the maintenance and operation of improvements and services shall be identified, and the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entire costs of the maintenance and operation of improvements. The 1972 Act, permits the establishment of assessment districts for the purpose of providing certain public improvements which include the public lighting facilities, including traffic signals. Section 22573 of the 1972 Act requires that maintenance assessments must be levied according to benefit rather than according to assessed value. This Section states: The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefit to be received by each such lot or parcel from the improvements. The determination of whether or not a lot or parcel will benefit from the improvements shall be made pursuant to the Improvement Act of 1911 (Division 7 commencing with Section 5000) [of the Streets and Highways Code, State of California]. Section 22547 of the 1972 Act also permits the designation of zones of benefit within any individual assessment district if "by reasons or variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvement". Article XIII D, Section 4(a) of the California Constitution limits the amount of any assessment to the proportional special benefit conferred on the property. Article XIII D also provides that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment. Exempted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements and rights-of-ways, public greenbelts and public parkways. The net amount to be assessed may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels. Proposition 218, approved by Street Lighting Maintenance District No. 5— City of Rancho Cucamonga 10 Fiscal Year 2024/25 the voters in November 1996, requires the City to separate general benefit from special benefit, where only special benefit is assessed. Special Benefit The maintenance and servicing of the improvements within the District (which are described in the Description of Improvements and Services Section of this report) are for the benefit of the properties within the District, and as such confer a special and direct benefit to parcels within the District by: • improving the livability, safety, appearance, and desirability for properties within the boundaries of the District, and • ensuring that improvements do not reach a state of deterioration or disrepair so as to be materially detrimental to properties within the District, and • providing for safe vehicular and pedestrian access for properties within the District, and • providing beautification and overall enhancement to properties within the District. The above mentioned items affect the assessed property in a way that is particular and distinct from their effect on other parcels and that real property in general and the public at large do not share. They contribute to a specific enhancement of the properties within the District. Since these improvements were installed and are maintained specifically for the properties within the District; only properties within the District receive a special benefit and are assessed for said maintenance. General Benefit In addition to the special benefits received by parcels within the District, there are derivative general benefits that are conferred on parcels outside the boundaries of the District which include: • the safety and visual enhancement of the area to persons or vehicles that may travel through the District However, it has been determined that these benefits are derivative and do not provide a direct benefit to parcels outside of the district that are not being assessed. Method of Assessment Spread Each of the parcels within the District is deemed to receive special benefit from the improvements. Each parcel that has a special benefit conferred upon it as a result of the maintenance and operation of improvements are identified and the proportionate special benefit Street Lighting Maintenance District No. 5— City of Rancho Cucamonga 11 Fiscal Year 2024/25 derived by each identified parcel is determined in relationship to the entire costs of the maintenance and operation of the improvements. When the District was formed, Article XIII D and Proposition 218 had not yet been passed. Upon the passage of Article XIII D and the subsequent passage of the Proposition Omnibus Implementation Act, new rules were put into place. Due to the changes in legal requirements, as property annexed to the District after the passage of the Assessment Law, the description of the method of assessment became more refined, however, the assessment per parcel has remained the same since Fiscal Year 1996/97. Further, no parcel included in the District formation or annexations prior to when the language was refined, are now being levied differently than they were at the time the District was formed or the parcels were annexed. To assess special benefit appropriately, it is necessary to relate the different type of parcel improvements to each other. The EBU method of apportionment uses the single-family home as the basic unit of assessment. A single-family home equals one EBU. The following table provides the weighting factors applied by land-use types, as assigned by County use code, to determine each parcel's EBU assignment. Land-Use Equivalent Dwelling Units Property Type (County Use Code EBU Value Multiplier Single Family Residential 1.00 Parcel The use of the latest County Assessor's Secured Roll shall be the basis for the Property Type determination and units/acreage assignments, unless better data is available to the City. In addition, if any parcel within the District is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, the Property Type and EBU assignment shall be based on the correct parcel number and/or new parcel number(s) County use code and subsequent property information. If a single parcel has changed to multiple parcels, the EBU assignment and assessment amount applied to each of the new parcels will be recalculated rather than spread the proportionate share of the original assessment. The following table summarizes the Fiscal Year 2024/25 maximum allowable assessment rates for the District: Maximum Allowable Actual Assessment Asessment Rate Total Property Type (County Use Code Rate per EBU per EBU Units/Acres Total EBUs Single Family Residential $34.60 $34.60 1,276.00 1,276.00 Street Lighting Maintenance District No. 5— City of Rancho Cucamonga 12 Fiscal Year 2024/25 The total amount of maintenance and incidental costs for maintaining the street lights and traffic signals is assessed to the individual parcels of real property within the District in proportion to the special benefit received by such parcels of real property. The proposed individual assessments are shown on the assessment roll in this report. ASSESSMENT DIAGRAM An Assessment Diagram for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Assessor of the County San Bernardino, at the time this report was prepared, and are incorporated by reference herein and made part of this Engineer's Report. Street Lighting Maintenance District No. 5— City of Rancho Cucamonga 13 Fiscal Year 2024/25 m c CD W CD Li City of Rancho Cucamonga �,�,___,___ _,__,,,Street Lighting Maintenance District No. 5 �' CUCRANCHOO >1 ,! ! - -* -•(Caryn Planned Community) CD cc C ~ E r 1= m a' m Hillside Rd 1 a ;; Wilson Av N 1 T 0 Banyan St O •� U1 I 19th St . > (� % ¢ Base Line Rd Base Line Rd 0 ;d o �s 1 n Foothill BI # Foothill BI c n0i a Arrow Rt ' Arrow Rt cn � sth St;.M_---- _ > ¢ Legend �6th A � 9 t j 4th sty _ 4th st _j City Limits Lx x ..rx��r��x�r��x� Lx.—x n,e N caZZc--p Q Q ¢ ¢ Q ¢ SLID 5 rn hcr.i�ccco,s��iaa vc,c.,.wnn u�nurc��a.ars-m C '0 N C C a.. M x a:Nn 2nY*(.m��a��k PAhYCCnS c,]rctnGs M aY:rvb^aarn M 0 �,.eae a y.4 x�n. it s swar v rn.M u.,�.rrr m r, O > Y +N�'' me:a c ,r�.rry a.rr+.r aaa m.inn mar- rnc•am nacr. tU QJ^e_A>aanwa core 1�W aae raxu�mrarrn— , �mr<rwn-s arc.+nonDr. ae�a.u,e.i iMeea m. me�myua vm�n� N V Q1 = 3 if mntlia*:.tN'y aM Rlaaa b a P�'Vun.TM ilt�tl P.TCw Cuoml4a xa�aaa,n s�•��.�a�an,�.�,,.�,�,„,<n a��:�:an, � _ � M Miles 1.5 0.75 0 1.5 ASSESSMENT ROLL AND ANNEXATIONS Assessment Roll The assessment roll is a listing of the assessment for Fiscal Year 2024/25 apportioned to each lot or parcel, as shown on the last equalized roll of the Assessor of the County of San Bernardino. The following table summarizes the Fiscal Year 2024/25 actual assessment for the District: Actual Assessment Total Property Type (County Use Code) Rate per EBU Units/Acres Total EBUs Total Assessment Single Family Residential $34.60 1,276.00 1,276.00 $44,149.60 Totals 1,276.001 1,276.001 $44,149.60 A copy of the full assessment roll is available for review in the City Clerk's office. Annexations There are no effective annexations for Fiscal Year 2024/25. Street Lighting Maintenance District No. 5— City of Rancho Cucamonga 15 Fiscal Year 2024/25 Annual Engineer's Report Fiscal Year 2024/25 City of Rancho Cucamonga Street Lighting Maintenance District No. 6 (Commercial Industrial) ATTACHMENT 15 CITY OF RANCHO CUCAMONGA STREET LIGHTING MAINTENANCE DISTRICT NO. 6 (COMMERCIAL INDUSTRIAL) 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909.477.2700 Fax: 909.477.2845 CITY COUNCIL L. Dennis Michael, Mayor Lynne B. Kennedy, Mayor Pro Tern Ryan A. Hutchison, Council Member Kristine D. Scott, Council Member Ashley N. Stickler, Council Member CITY STAFF John R. Gillison, City Manager Elisa Cox, Assistant City Manager Jason C. Welday, Director of Engineering Services/City Engineer Micah Martin, Public Works Director Noah Daniels, Finance Director TABLE OF CONTENTS ENGINEER'S LETTER 1 INTRODUCTION 3 Reason for Assessment 3 Process for Annual Assessment 3 PLANS AND SPECIFICATIONS 4 Description of the Boundaries of the District 4 Description of Improvements and Services 4 Map of Improvements 5 ESTIMATE OF COSTS 7 District Budget 7 Definitions of Budget Items 9 METHOD OF ASSESSMENT 10 Overview 10 Special Benefit 11 General Benefit 11 Method of Assessment Spread 11 ASSESSMENT DIAGRAM 13 ASSESSMENT ROLL AND ANNEXATIONS 15 Assessment Roll 15 Annexations 15 ENGINEER'S LETTER WHEREAS, on June 5, 2024, the City Council of Rancho Cucamonga (the "City"), under the Landscaping and Lighting Act of 1972 (the "1972 Act") adopted its Resolution No. 2024-049, a Resolution Initiating Proceedings for the Levy of Annual Assessments for Street Light Maintenance District No. 6 (Commercial Industrial) (the "District"); and WHEREAS, the Resolution Initiating Proceedings directed the City Engineer to prepare and file an Annual Engineer's Report for Fiscal Year 2024/25 pursuant to the requirements of the 1972 Act. The Annual Engineer's Report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the maintenance, operations and servicing of the improvements for the District for the referenced fiscal year, a diagram for the District, showing the area and properties proposed to be assessed, and an assessment of the estimated costs of the maintenance, operations and servicing of the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received; and NOW THEREFORE, the following assessment is proposed to be authorized in order to pay for the acquisition of street lights, the installation of Light Emitting Diode (LED) street lighting, and estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the boundaries of the District in proportion to the special benefit received. The following table summarizes the proposed assessment. Fiscal Year 2024/25 Budget Expenditures Operations and Maintenance $ 72,370 Transfer Out 14,980 Total Expenditures Budget 87,350 Revenues Taxes: Estimated Assessments, Net of Estimated Delinquencies 132,470 Anticipated Prior Year Delinquencies Collection 1,610 Subtotal - Taxes 134,080 Transfer In - CFD Empire Lakes 250 Transfer In - CFD Street Lighting Services 7,680 Total Revenues Budget 142,010 Contribution to/(Use of) Fund Balance $ 54,660 Total District EBU Count 2,577.17 Actual Assessment per EBU $ 51.40 Maximum Allowable Assessment per EBU $ 51.40 Street Lighting Maintenance District No. 6— City of Rancho Cucamonga 1 Fiscal Year 2024/25 In making the assessments contained herein pursuant to the 1972 Act: 1. I have identified all parcels which will have a special benefit conferred upon them from the improvement described in the Special Benefit Section of this Annual Engineer's Report (the "Specially Benefited Parcels"). For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is included in this Annual Engineer's Report. 2. 1 have evaluated the costs and expenses of the improvements upon the Specially Benefited Parcels. In making such evaluation: a. The proportionate special benefit derived by each Specially Benefited Parcel from the improvements was determined in relationship to the entirety of the maintenance costs of the improvements; b. No assessment has been imposed on any Specially Benefited Parcel which exceeds the reasonable cost of the proportional special benefit conferred on such parcel from the improvements; and c. Any general benefits from the improvements have been separated from the special benefits and only special benefits have been assessed. I, the undersigned, respectfully submit the enclosed Annual Engineer's Report and, to the best of my knowledge, information and belief, I certify that the Annual Engineer's Report and Assessment Diagram included herein have been prepared and computed in accordance with the order of the City Council of the City of Rancho Cucamonga and the Assessment Law. �/ QROFESS1pyq� � m * No.67514 *, _ 07/17/2024 �9,f c,v1� o��% Jason C. Welday Date of cw Director of Engineering Services/City Engineer Street Lighting Maintenance District No. 6 — City of Rancho Cucamonga 2 Fiscal Year 2024/25 INTRODUCTION Reason for Assessment Approval of the assessment covered by this Engineer's Report will generate the revenue necessary to: Provide for the maintenance and servicing of the improvements described in this Engineer's Report. Maintenance may include but is not limited to, all of the following: the upkeep, repair, removal or replacement of all or any part of any improvement. Servicing means the furnishing of electricity, gas or other illuminating energy for the lighting or appurtenant facilities. This shall also include material, vehicle, equipment, capital improvements, the installation of LED street lighting, and administrative costs associated with the annual administration and operation of the District. Process for Annual Assessment The City cannot levy and collect annual assessments within the District without complying with the procedures specified in the 1972 Act. On an annual basis, an Engineer's Report must be prepared which contains a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. The City Council must also adopt a resolution of intention which: • Declares the intention of the City Council to levy and collect assessments within the District for the fiscal year stated therein. • Generally describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements. • Refers to the District by its distinctive designation and indicate the general location of the District. • Refers to the Engineer's Report, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. • Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment. • States whether the assessment is proposed to increase from the previous year. If the assessments are to be levied in the same or lesser amounts than the maximum assessment amount approved, the City Clerk shall give notice by causing the resolution of intention to be published. Any interested person may, prior to the conclusion of the public hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. Street Lighting Maintenance District No. 6 — City of Rancho Cucamonga 3 Fiscal Year 2024/25 During the course or upon conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including the improvements, to the zones within the District, and the proposed diagram or the proposed assessment. The City Council, upon conclusion of the public hearing, must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the assessment. If the assessment to be levied exceeds the maximum assessment amount previously-approved, the City must comply with the procedures specified in Article XIII D and Proposition 218. The voters in the State of California in November 1996 added Article XIII D to the California Constitution imposing, among other requirements, the necessity for the City to conduct an assessment ballot procedure to enable the owners of each property on which assessments are proposed to be enacted or increased, the opportunity to, express their support for, or opposition to the proposed assessment or increase in such assessment. PLANS AND SPECIFICATIONS The District provides for the administration, maintenance, operations, and servicing of various improvements located within the public right-of-way and dedicated easements within the boundaries of the District. Description of the Boundaries of the District The District is located in the City of Rancho Cucamonga, State of California. The boundaries of the District are generally described as the commercial and industrial area of the City which is generally bounded by Foothill Blvd on the north, 4th St on the south, East Ave on the east and Grove Ave on the west. Reference is also made to the Assessment Diagram included in this Report. Description of Improvements and Services The improvements are the maintenance and servicing of street lights, traffic signals and appurtenant facilities throughout the District. The maintenance and servicing includes, but is not limited to, furnishing electric current for public lighting facilities including street lights and traffic signals, and associated appurtenant facilities. Services include personnel, materials, contracting services, utilities, and all necessary costs associated with the maintenance, replacement and repair required to keep the improvements in operational and satisfactory condition. In addition, it is the City's intention to continue to use cost effective materials, in order to lower expenses of the District. In Fiscal Year 2017/18, the acquisition by the City of the street lights and installation of LED street lighting specially benefiting the properties within the District has been added to the improvements. Street Lighting Maintenance District No. 6 — City of Rancho Cucamonga 4 Fiscal Year 2024/25 Map of Improvements The following page shows the map of street light and traffic signal improvements to be maintained using District funds. Street Lighting Maintenance District No. 6 — City of Rancho Cucamonga 5 Fiscal Year 2024125 -ncn v m �, Q City of Rancho Cucamonga — � Q > IR Q C: Street Lighting Maintenance District No. 6 CD `° �' v Y (Commercial Industrial) ? RANCHO c CD(a L----.— --------------- ------ rr� *1.ur mom,rl.l.r.uirlrl.lra.iur�r; A. ¢ ; i a> ' a Hillside Rd ; M G i - �> 3 i Wilson Av LU CD L j CBanyan St n' s • � Z ' ° Mh St ` rn a� 1< Base Line Rd 6 o + ! 1-7 Base Line Rd r 0 I i n Foothill B1 (,r • �+ - I __—._--� Foothill BI 0 • ,,w■, Arrow Rt w Arrow Rt I j •.e 1 .� 8th St, * • > > �r. -- a Legend Q) -T 0 o�6thVSt ---"—L. J �' Streetlights y 44thSt ,x,r � ."tSLD 6 r ce c exsbad s a out�s�. n q•�•�.r anr. ¢ Q Q Q Q > j y i ire i[ r+dn-r,L - - msAr.rm aep. -err,-rnT v!>-a1 rr qwr Q Q .rrrm •n.r.e�e�,e�r.rxT;maMko ra n.a—, "bxivmzr� C 'a 10 C C L- �p City Umi s T..ya - 7 —1 ^e u>c cm�s xr eW wm M rrm r t m v,m.ffi Ill jC3 ■ .J .xe m w �•dexrniamn,wry+;n aw ao :ao-s�zuc —� na�r, '� O >N^� +�+ rrK c,n d K—W -'.* w e+prcrt�y wnnur<IrnraL;.-r ,aw amr er E i0 ear ra are:ern . �m�,ery,Gs na jai m.ne pum,mr-�r -6 L = ar resrc w am aawlN.�ws x eM�u ro.C4 ez T Miles mun - arc in aro Inrvrrr,G*rM1eC aerd'v t��l a!ry act or aI 1 0.5 0 1 ESTIMATE OF COSTS The estimated costs of administration, maintenance, operations, and servicing the improvements as described in the Plans and Specifications are summarized below. Each year, as part of the District levy calculation process, the costs and expenses are reviewed and the annual costs are projected for the following fiscal year. District Budget Fiscal Year 2024/25 Budget Expenditures Operations and Maintenance: Operations and Maintenance: Contract Services $ 2,780 Utilities: Electric Utilities 59,900 Assessment Administration 4,030 Admin./General Overhead 5,660 Subtotal -Operations and Maintenance 72,370 Transfer Out - General Street Lights Fund 14,980 Total Expenditures Budget $ 87,350 Street Lighting Maintenance District No. 6 — City of Rancho Cucamonga 7 Fiscal Year 2024/25 Fiscal Year 2024/25 Budget Revenues Taxes: Estimated Assessments, Net of Estimated Delinquencies $ 132,470 Anticipated Prior Year Delinquencies Collection 1,610 Subtotal -Taxes 134,080 Transfer In: Transfer In - CFD Empire Lakes 250 Transfer In - CFD Street Lighting Services 7,680 Subtotal -Transfer In: 7,930 Total Revenues Budget 142,010 Contribution to/(Use of) Fund Balance $ 54,660 Total Gross Estimated Assessments $ 132,466.52 Total District EBU Count 2,577.17 Actual Assessment per EBU- Fiscal Year 2024/25 $ 51.40 Maximum Allowable Assessment per EBU- Fiscal Year 2024/25 $ 51.40 The maximum allowable assessment per Equivalent Benefit Unit (EBU) listed in the District budget above, is the amount which was approved in Fiscal Year 1996/97 and subsequent District annexations. Each year, prior to the assessments being placed on the tax roll, the City will review the budget and determine the amount needed to maintain the improvements for the upcoming fiscal year. The actual assessment per EBU will be based on the total amount of funds needed to maintain the improvements in a satisfactory and healthy condition. The actual assessment amount may be lower than the maximum allowable assessment; however, it may not exceed the maximum unless the increase is approved by the property owners in accordance with Proposition 218. It is the intent of the City to maintain an Operating Reserve which shall not exceed the estimated costs of maintenance and servicing of the improvements prior to December 10 of the fiscal year, or when the City expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. The reserve balance information for the District is as follows: Operating Operating Reserve Estimated Reserve Fund Balance, June 30, 2024 $ 139,065 Contribution to/(Use of) Reserve - Fiscal Year 2024/25 54,660 Estimated Reserve Fund Balance, June 30, 2025 $ 193,725 Street Lighting Maintenance District No. 6 — City of Rancho Cucamonga 8 Fiscal Year 2024/25 Definitions of Budget Items The following definitions describe the costs and expenses included in the District Budget: Personnel Services: This item includes the costs attributed to the salaries of all full-time and part-time employees dedicated to maintenance of the District improvements. Additionally, this includes benefits available to City employees. Operations and Maintenance: This item includes the costs of City staff to perform maintenance duties within the boundaries of the District. Utilities: This item includes the costs to furnish electricity and telephone services, as required, for the operation and maintenance of the street lights, traffic signals, and appurtenant facilities throughout the District. Assessment Administration: This item includes the cost to all particular departments and staff of the City, and consultants for providing the administration, coordination and management of District services, operations, and incidental expenses related to the District. This item also includes creation of an annual Engineer's Report, resolutions and placing the assessment amounts onto the County tax roll each year, along with responding to any public inquiries and future Proposition 218 balloting proceedings. General Overhead: This item includes the costs of all central services departments of the City for providing the coordination of District services, inspections, annual bid management, responding to public concerns, public education, accounting, auditing and procedural matters associated with the District. This item also includes an allocation for general City staff time for administrative functions and systems that provide for a functional and operational District within the City's administrative structure. Capital Outlay: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include installation of safety lights and other large improvements. Debt Service: This item includes the repayment of interest and principal to the City General Fund for the acquisition of street lights and installation of LED street lighting within the District. In FY 2021/22, the outstanding balance of the interfund was fully repaid. Transfer Out - General City Street Lights Fund: This item includes the cost for the replacement and installation of District owned street lights. These costs are incurred in the General City Street Lights Fund and reimbursed by the District. Other Revenues: This includes other revenues that are not levied through the annual assessments that support the District operations. These other revenues may include: interest earnings and Developer Energizing Fees. Street Lighting Maintenance District No. 6 — City of Rancho Cucamonga 9 Fiscal Year 2024/25 METHOD OF ASSESSMENT Overview Pursuant to the 1972 Act and Article XIII D, all parcels that have a special benefit conferred upon them as a result of the maintenance and operation of improvements and services shall be identified, and the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entire costs of the maintenance and operation of improvements. The 1972 Act, permits the establishment of assessment districts for the purpose of providing certain public improvements which include the public lighting facilities, including traffic signals. Section 22573 of the 1972 Act requires that maintenance assessments must be levied according to benefit rather than according to assessed value. This Section states: The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefit to be received by each such lot or parcel from the improvements. The determination of whether or not a lot or parcel will benefit from the improvements shall be made pursuant to the Improvement Act of 1911 (Division 7 commencing with Section 5000) [of the Streets and Highways Code, State of California]. Section 22547 of the 1972 Act also permits the designation of zones of benefit within any individual assessment district if "by reasons or variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvement". Article XIII D, Section 4(a) of the California Constitution limits the amount of any assessment to the proportional special benefit conferred on the property. Article XIII D also provides that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment. Exempted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements and rights-of-ways, public greenbelts and public parkways. The net amount to be assessed may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels. Proposition 218, approved by the voters in November 1996, requires the City to separate general benefit from special benefit, where only special benefit is assessed. Street Lighting Maintenance District No. 6 — City of Rancho Cucamonga 10 Fiscal Year 2024/25 Special Benefit The maintenance and servicing of the improvements within the District (which are described in the Description of Improvements and Services Section of this report) are for the benefit of the properties within the District, and as such confer a special and direct benefit to parcels within the District by: • improving the livability, safety, appearance, and desirability for properties within the boundaries of the District, and • ensuring that improvements do not reach a state of deterioration or disrepair so as to be materially detrimental to properties within the District, and • providing for safe vehicular and pedestrian access for properties within the District, and • providing beautification and overall enhancement to properties within the District. The above mentioned items affect the assessed property in a way that is particular and distinct from their effect on other parcels and that real property in general and the public at large do not share. They contribute to a specific enhancement of the properties within the District. Since these improvements were installed and are maintained specifically for the properties within the District; only properties within the District receive a special benefit and are assessed for said maintenance. General Benefit In addition to the special benefits received by parcels within the District, there are derivative general benefits that are conferred on parcels outside the boundaries of the District which include: • the safety and visual enhancement of the area to persons or vehicles that may travel through the District However, it has been determined that these benefits are derivative and do not provide a direct benefit to parcels outside of the district that are not being assessed. Method of Assessment Spread Each of the parcels within the District is deemed to receive special benefit from the improvements. Each parcel that has a special benefit conferred upon it as a result of the maintenance and operation of improvements are identified and the proportionate special benefit derived by each identified parcel is determined in relationship to the entire costs of the maintenance and operation of the improvements. When the District was formed, Article XIII D and Proposition 218 had not yet been passed. Upon the passage of Article XIII D and the subsequent passage of the Proposition Omnibus Implementation Act, new rules were put into place. Due to the changes in legal requirements, as Street Lighting Maintenance District No. 6 — City of Rancho Cucamonga 11 Fiscal Year 2024/25 property annexed to the District after the passage of the Assessment Law, the description of the method of assessment became more refined, however, the assessment per parcel has remained the same since Fiscal Year 1996/97. Further, no parcel included in the District formation or annexations prior to when the language was refined, are now being levied differently than they were at the time the District was formed or the parcels were annexed. To assess special benefit appropriately, it is necessary to relate the different type of parcel improvements to each other. The EBU method of apportionment uses the single-family home as the basic unit of assessment. A single-family home equals one EBU. Every other land-use is converted to EBUs based on an assessment formula that equates to the property's specific development status, type of development (land-use), and size of the property, as compared to a single-family home. The following table provides the weighting factors applied to various land-use types, as assigned by County use code, to determine each parcel's EBU assignment. Land-Use Equivalent Dwelling Units Property Type (County Use Code) EBU Value Multiplier Non-Residential 1 1.00 1 Acre The use of the latest County Assessor's Secured Roll shall be the basis for the Property Type determination and units/acreage assignments, unless better data is available to the City. In addition, if any parcel within the District is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, the Property Type and EBU assignment shall be based on the correct parcel number and/or new parcel number(s) County use code and subsequent property information. If a single parcel has changed to multiple parcels, the EBU assignment and assessment amount applied to each of the new parcels will be recalculated rather than spread the proportionate share of the original assessment. The following table summarizes the Fiscal Year 2024/25 maximum allowable assessment rate for the District: Maximum Allowable Actual Assessment Asessment Rate Total Property Type (County Use Code Rate per EBU per EBU Units/Acres Total EBUs Non-Residential $51.40 $51.40 2,577.17 2,577.17 The total amount of maintenance and incidental costs for maintaining the streetlights and traffic signals is assessed to the individual parcels of real property within the District in proportion to the special benefit received by such parcels of real property. The proposed individual assessments are shown on the assessment roll in this report. Street Lighting Maintenance District No. 6 — City of Rancho Cucamonga 12 Fiscal Year 2024/25 ASSESSMENT DIAGRAM An Assessment Diagram for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Assessor of the County San Bernardino, at the time this report was prepared, and are incorporated by reference herein and made part of this Engineer's Report. Street Lighting Maintenance District No. 6 — City of Rancho Cucamonga 13 Fiscal Year 2024/25 5Z/VZOZ Je9A ieosi�j t, e6umeono oyoue�j jo Apo — g 'ON IoPIsia aoueualuieW 6uily6il 199JIS !4pQfi Z raa 1n TV 0 D. � a Grove Av s..---•-•--�_..�--•.� a �.•*' --, # i Carnelian St' a � i i Vineyaarrd Av ! ! Hellman Av r .. "' ,. Hellman Av Archibald A,. Archibald Av! Hermosa A, j Hermosa Av ! Haven Av ; Haven Av i Milliken Av Milliken Av ! Rochester Av �� i Rochester Av i Day Creek BI ID x1 Etiwanda Av Etiwanda Av NP East in 1p T •p7 y g is = r D al � ^° ro j C rt O LIB � Cherry Av In Cl R -------- --' A fAD S o ON 3 r _ & CL .- o0 ASSESSMENT ROLL AND ANNEXATIONS Assessment Roll The assessment roll is a listing of the assessment for Fiscal Year 2024/25 apportioned to each lot or parcel, as shown on the last equalized roll of the Assessor of the County of San Bernardino. The following table summarizes the Fiscal Year 2024/25 actual assessment for the District: Actual Assessment Total Property Type (County Use Code) Rate per EBU Units/Acres Total EBUs Total Assessment Non-Residential $51.40 2,577.17 2,577.17 $132,466.52 Totals 2,577.17 2,577.171 $132,466.52 A copy of the full assessment roll is available for review in the City Clerk's office. Annexations The following annexations are effective for Fiscal Year 2024/25: Annexation Total Units/ Apn Date Project Name Acres Total EBUs Property Type 0229-021-97 02/15/23 DRC2021-00320 2.37 2.37 Commercial/Industrial Street Lighting Maintenance District No. 6 — City of Rancho Cucamonga 15 Fiscal Year 2024/25 Annual Engineer's Report Fiscal Year 2024/25 City of Rancho Cucamonga Street Lighting Maintenance District No. 7 (North Etiwanda) ATTACHMENT 16 CITY OF RANCHO CUCAMONGA STREET LIGHTING MAINTENANCE DISTRICT NO. 7 (NORTH ETIWANDA) 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909.477.2700 Fax: 909.477.2845 CITY COUNCIL L. Dennis Michael, Mayor Lynne B. Kennedy, Mayor Pro Tern Ryan A. Hutchison, Council Member Kristine D. Scott, Council Member Ashley N. Stickler, Council Member CITY STAFF John R. Gillison, City Manager Elisa Cox, Assistant City Manager Jason C. Welday, Director of Engineering Services/City Engineer Micah Martin, Public Works Director Noah Daniels, Finance Director TABLE OF CONTENTS ENGINEER'S LETTER 1 INTRODUCTION 3 Reason for Assessment 3 Process for Annual Assessment 3 PLANS AND SPECIFICATIONS 4 Description of the Boundaries of the District 4 Description of Improvements and Services 4 Map of Improvements 5 ESTIMATE OF COSTS 7 District Budget 7 Definitions of Budget Items 9 METHOD OF ASSESSMENT 10 Overview 10 Special Benefit 11 General Benefit 11 Method of Assessment Spread 11 ASSESSMENT DIAGRAM 13 ASSESSMENT ROLL AND ANNEXATIONS 15 Assessment Roll 15 Annexations 15 ENGINEER'S LETTER WHEREAS, on June 5, 2024, the City Council of Rancho Cucamonga (the "City"), under the Landscaping and Lighting Act of 1972 (the "1972 Act") adopted its Resolution No. 2024-049, a Resolution Initiating Proceedings for the Levy of Annual Assessments for Street Light Maintenance District No. 7 (North Etiwanda) (the "District"); and WHEREAS, the Resolution Initiating Proceedings directed the City Engineer to prepare and file an Annual Engineer's Report for Fiscal Year 2024/25 pursuant to the requirements of the 1972 Act. The Annual Engineer's Report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the maintenance, operations and servicing of the improvements for the District for the referenced fiscal year, a diagram for the District, showing the area and properties proposed to be assessed, and an assessment of the estimated costs of the maintenance, operations and servicing of the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received; and NOW THEREFORE, the following assessment is proposed to be authorized in order to pay for the acquisition of street lights, the installation of Light Emitting Diode (LED) street lighting, and estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the boundaries of the District in proportion to the special benefit received. The following table summarizes the proposed assessment. Fiscal Year 2024/25 Budget Expenditures Operations and Maintenance 130,480 Transfer Out 30,310 Total Expenditures Budget 160,790 Revenues Taxes: Estimated Assessments, Net of Estimated Delinquencies 131,150 Anticipated Prior Year Delinquencies Collection 1,610 Subtotal - Taxes 132,760 Transfers In 30,490 Total Revenues Budget 163,250 Contribution to/(Use of) Fund Balance $ 2,460 Total District EBU Count 3,936.00 Actual Assessment per EBU $ 33.32 Maximum Allowable Assessment per EBU $ 33.32 Street Lighting Maintenance District No. 7— City of Rancho Cucamonga 1 Fiscal Year 2024/25 In making the assessments contained herein pursuant to the 1972 Act: 1. I have identified all parcels which will have a special benefit conferred upon them from the improvement described in the Special Benefit Section of this Annual Engineer's Report (the "Specially Benefited Parcels"). For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is included in this Annual Engineer's Report. 2. 1 have evaluated the costs and expenses of the improvements upon the Specially Benefitted Parcels. In making such evaluation: a. The proportionate special benefit derived by each Specially Benefited Parcel from the improvements was determined in relationship to the entirety of the maintenance costs of the improvements; b. No assessment has been imposed on any Specially Benefited Parcel which exceeds the reasonable cost of the proportional special benefit conferred on such parcel from the improvements; and c. Any general benefits from the improvements have been separated from the special benefits and only special benefits have been assessed. I, the undersigned, respectfully submit the enclosed Annual Engineer's Report and, to the best of my knowledge, information and belief, I certify that the Annual Engineer's Report and Assessment Diagram included herein have been prepared and computed in accordance with the order of the City Council of the City of Rancho Cucamonga and the Assessment Law. l y*f1SSrpN* ,aQ, 9L c m * W.67514 * 07/17/2024 r9. c l v i�0.�� Jason C. Welday Date f Of ck�\', Director of Engineering Services/City Engineer Street Lighting Maintenance District No. 7— City of Rancho Cucamonga 2 Fiscal Year 2024/25 INTRODUCTION Reason for Assessment Approval of the assessment covered by this Engineer's Report will generate the revenue necessary to: Provide for the maintenance and servicing of the improvements described in this Engineer's Report. Maintenance may include but is not limited to, all of the following: the upkeep, repair, removal or replacement of all or any part of any improvement. Servicing means the furnishing of electricity, gas or other illuminating energy for the lighting or appurtenant facilities. This shall also include material, vehicle, equipment, capital improvements, the installation of LED street lighting, and administrative costs associated with the annual administration and operation of the District. Process for Annual Assessment The City cannot levy and collect annual assessments within the District without complying with the procedures specified in the 1972 Act. On an annual basis, an Engineer's Report must be prepared which contains a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. The City Council must also adopt a resolution of intention which: • Declares the intention of the City Council to levy and collect assessments within the District for the fiscal year stated therein. • Generally describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements. • Refers to the District by its distinctive designation and indicate the general location of the District. • Refers to the Engineer's Report, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. • Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment. • States whether the assessment is proposed to increase from the previous year. If the assessments are to be levied in the same or lesser amounts than the maximum assessment amount approved, the City Clerk shall give notice by causing the resolution of intention to be published. Any interested person may, prior to the conclusion of the public hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. Street Lighting Maintenance District No. 7 — City of Rancho Cucamonga 3 Fiscal Year 2024/25 During the course or upon conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including the improvements, to the zones within the District, and the proposed diagram or the proposed assessment. The City Council, upon conclusion of the public hearing must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the assessment. If the assessment to be levied exceeds the maximum assessment amount previously approved, the City must comply with the procedures specified in Article XIII D and Proposition 218. The voters in the State of California in November 1996 added Article XIII D to the California Constitution imposing, among other requirements, the necessity for the City to conduct an assessment ballot procedure to enable the owners of each property on which assessments are proposed to be enacted or increased, the opportunity to express their support for, or opposition to, the proposed assessment or increase in such assessment. PLANS AND SPECIFICATIONS The District provides for the administration, maintenance, operations, and servicing of various improvements located within the public right-of-way and dedicated easements within the boundaries of the District. Description of the Boundaries of the District The District is located in the City of Rancho Cucamonga, State of California. The boundaries of the District are generally described as that area of the City known as North Etiwanda, which is generally bounded by Highland Ave on the south, Day Creek Channel on the west and City limits on the east and north. Reference is also made to the Assessment Diagram included in this Report. Description of Improvements and Services The improvements are the maintenance and servicing of street lights, traffic signals and appurtenant facilities throughout the District. The maintenance and servicing includes, but is not limited to, furnishing electric current for public lighting facilities including street lights and traffic signals, and associated appurtenant facilities. Services include personnel, materials, contracting services, utilities, and all necessary costs associated with the maintenance, replacement and repair required to keep the improvements in operational and satisfactory condition. In addition, it is the City's intention to continue to use cost effective materials, in order to lower expenses of the District. In Fiscal Year 2017/18, the acquisition by the City of the street lights and installation of LED street lighting specially benefiting the properties within the District has been added to the improvements. Street Lighting Maintenance District No. 7— City of Rancho Cucamonga 4 Fiscal Year 2024/25 Map of Improvements The following page shows the map of street light and traffic signal improvements to be maintained using District funds. Street Lighting Maintenance District No. 7 — City of Rancho Cucamonga 5 Fiscal Year 2024/25 -nN Fn' v m City of Rancho Cucamonga Street Lighting Maintenance District No. 7 m � RANCHO (North Etiwanda) RANCO N � O(a N of 0000 000 N � Ni •M�+�• i• •! 0 Mr! • f 0 •ram •.. .••..k ! _0_ •• • • • (A • Cn j••••� ••A • f f! • Qj••• !! •'•! •.•s • ot• to so 00. Wilson Av 0 fV ••f..� � �•• j • . 0. % • It•�.•.� � _ T-- Banyan St u O • • + {•• ~ mr + * • ••••" LL 1 or - Legend .�=�r a wnx caoiwnya x orsenim r a�uwc Rsv+a a ana,m. y • Street Lights M m me ance.� x7.xa m vrm ae N uaw e* .v nra-a� cm+�aa p,xren. -*e m oaue.d-m �yr trts ro za W SLD 7 Boundary re x r ranma �a m+a+M�r e+u.rmwxo�uu -e si ty Miles r� CI Limits .mar nemr =cc..r mn innev una=src x m m nry naca« c a.e m ss,.c ev w^r<•r.�: r c sac nacr� W 0.5 0.25 0 0.5 0) ESTIMATE OF COSTS The estimated costs of administration, maintenance, operations, and servicing the improvements as described in the Plans and Specifications are summarized below. Each year, as part of the District levy calculation process, the costs and expenses are reviewed and the annual costs are projected for the following fiscal year. District Budget Fiscal Year 2024/25 Budget Expenditures Operations and Maintenance: Operations and Maintenance: Contract Services 5,630 Utilities: Electric Utilities 106,810 Assessment Administration 13,980 Admin./General Overhead 4,060 Subtotal - Operations and Maintenance 130,480 Transfer Out - General Street Lights Fund 30,310 Total Expenditures Budget $ 160,790 Street Lighting Maintenance District No. 7 — City of Rancho Cucamonga 7 Fiscal Year 2024/25 Fiscal Year 2024/25 Budget Revenues Taxes: Estimated Assessments, Net of Estimated Delinquencies $ 131,150 Anticipated Prior Year Delinquencies Collection 1,610 Subtotal -Taxes 132,760 Transfer In: Transfer In - General Fund 30,490 Total Revenues Budget 163,250 Contribution to/(Use of) Fund Balance $ 2,460 Total Gross Estimated Assessments $ 131,147.52 Total District EBU Count 3,936.00 Actual Assessment per EBU - Fiscal Year 2024/25 $ 33.32 Maximum Allowable Assessment per EBU - Fiscal Year 2024/25 $ 33.32 The maximum allowable assessment per Equivalent Benefit Unit (EBU) listed in the District budget above, is the amount which was approved in Fiscal Year 1996/97 and subsequent District annexations. Each year, prior to the assessments being placed on the tax roll, the City will review the budget and determine the amount needed to maintain the improvements for the upcoming fiscal year. The actual assessment per EDU will be based on the total amount of funds needed to maintain the improvements in a satisfactory and healthy condition. The actual assessment amount may be lower than the maximum allowable assessment; however, it may not exceed the maximum unless the increase is approved by the property owners in accordance with Proposition 218. It is the intent of the City to maintain an Operating Reserve which shall not exceed the estimated costs of maintenance and servicing of the improvements prior to December 10 of the fiscal year, or when the City expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. The reserve balance information for the District is as follows: Operating Reserve Estimated Reserve Fund Balance, June 30, 2024 $ 165,388 Contribution to/(Use of) Reserve- Fiscal Year 2024/25 2,460 Estimated Reserve Fund Balance, June 30, 2025 $ 167,848 Street Lighting Maintenance District No. 7— City of Rancho Cucamonga 8 Fiscal Year 2024/25 Definitions of Budget Items The following definitions describe the costs and expenses included in the District Budget: Personnel Services: This item includes the costs attributed to the salaries of all full-time and part-time employees dedicated to maintenance of the District improvements. Additionally, this includes benefits available to City employees. Operations and Maintenance: This item includes the costs of City staff to perform maintenance duties within the boundaries of the District. Utilities: This item includes the costs to furnish electricity and telephone services, as required, for the operation and maintenance of the street lights, traffic signals, and appurtenant facilities throughout the District. Assessment Administration: This item includes the cost to all particular departments and staff of the City, and consultants for providing the administration, coordination and management of District services, operations, and incidental expenses related to the District. This item also includes creation of an annual Engineer's Report, resolutions and placing the assessment amounts onto the County tax roll each year, along with responding to any public inquiries and future Proposition 218 balloting proceedings. General Overhead: This item includes the costs of all central services departments of the City for providing the coordination of District services, inspections, annual bid management, responding to public concerns, public education, accounting, auditing and procedural matters associated with the District. This item also includes an allocation for general City staff time for administrative functions and systems that provide for a functional and operational District within the City's administrative structure. Capital Outlay: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include installation of safety lights and other large improvements. Debt Service: This item includes the repayment of interest and principal to the City Capital Reserve Fund for the acquisition of street lights and installation of LED street lighting within the District. In Fiscal Year 2023/24, the debt service has been suspended due to the structural operating deficit and will be routinely monitored. Transfer Out - General City Street Lights Fund: This item includes the cost for the replacement and installation of District owned street lights. These costs are incurred in the General City Street Lights Fund and reimbursed by the District. Street Lighting Maintenance District No. 7 — City of Rancho Cucamonga 9 Fiscal Year 2024/25 Other Revenues: This includes other revenues that are not levied through the annual assessments that support the District operations. These other revenues may include: interest earnings and Developer Energizing Fees. METHOD OF ASSESSMENT Overview Pursuant to the 1972 Act and Article XIII D, all parcels that have a special benefit conferred upon them as a result of the maintenance and operation of improvements and services shall be identified, and the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entire costs of the maintenance and operation of improvements. The 1972 Act, permits the establishment of assessment districts for the purpose of providing certain public improvements which include the public lighting facilities, including traffic signals. Section 22573 of the 1972 Act requires that maintenance assessments must be levied according to benefit rather than according to assessed value. This Section states: The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefit to be received by each such lot or parcel from the improvements. The determination of whether or not a lot or parcel will benefit from the improvements shall be made pursuant to the Improvement Act of 1911 (Division 7 commencing with Section 5000) [of the Streets and Highways Code, State of California]. Section 22547 of the 1972 Act also permits the designation of zones of benefit within any individual assessment district if "by reasons or variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvement". Article XIII D, Section 4(a) of the California Constitution limits the amount of any assessment to the proportional special benefit conferred on the property. Article XIII D also provides that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment. Exempted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements and rights-of-ways, public greenbelts and public parkways. The net amount to be assessed may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels. Proposition 218, approved by Street Lighting Maintenance District No. 7— City of Rancho Cucamonga 10 Fiscal Year 2024/25 the voters in November 1996, requires the City to separate general benefit from special benefit, where only special benefit is assessed. Special Benefit The maintenance and servicing of the improvements within the District (which are described in the Description of Improvements and Services Section of this report) are for the benefit of the properties within the District, and as such confer a special and direct benefit to parcels within the District by: • improving the livability, safety, appearance, and desirability for properties within the boundaries of the District, and • ensuring that improvements do not reach a state of deterioration or disrepair so as to be materially detrimental to properties within the District, and • providing for safe vehicular and pedestrian access for properties within the District, and • providing beautification and overall enhancement to properties within the District. The above mentioned items affect the assessed property in a way that is particular and distinct from their effect on other parcels and that real property in general and the public at large do not share. They contribute to a specific enhancement of the properties within the District. Since these improvements were installed and are maintained specifically for the properties within the District; only properties within the District receive a special benefit and are assessed for said maintenance. General Benefit In addition to the special benefits received by parcels within the District, there are derivative general benefits that are conferred on parcels outside the boundaries of the District which include: • the safety and visual enhancement of the area to persons or vehicles that may travel through the District However, it has been determined that these benefits are derivative and do not provide a direct benefit to parcels outside of the district that are not being assessed. Method of Assessment Spread Each of the parcels within the District is deemed to receive special benefit from the improvements. Each parcel that has a special benefit conferred upon it as a result of the maintenance and operation of improvements are identified and the proportionate special benefit derived by each identified parcel is determined in relationship to the entire costs of the maintenance and operation of the improvements. Street Lighting Maintenance District No. 7— City of Rancho Cucamonga 11 Fiscal Year 2024/25 When the District was formed, Article XIII D and Proposition 218 had not yet been passed. Upon the passage of Article XIII D and the subsequent passage of the Proposition Omnibus Implementation Act, new rules were put into place. Due to the changes in legal requirements, as property annexed to the District after the passage of the Assessment Law, the description of the method of assessment became more refined; however, the assessment per parcel has remained the same since Fiscal Year 1996/97. Further, no parcel included in the District formation or annexations prior to when the language was refined, are now being levied differently than they were at the time the District was formed or the parcels were annexed. To assess special benefit appropriately, it is necessary to relate the different type of parcel improvements to each other. The Equivalent Dwelling Unit ("EDU") method of apportionment uses the single-family home as the basic unit of assessment. A single-family home equals one Equivalent Dwelling Unit (EDU). Every other land-use is converted to EDUs based on an assessment formula that equates to the property's specific development status, type of development (land-use), and size of the property, as compared to a single-family home. The following table provides the weighting factors applied to various land- use types, as assigned by County use code, to determine each parcel's EDU assignment. Land-Use Equivalent Dwelling Units Property Type (County Use Code) EBU Value Multiplier Single Family Residential 1.00 Parcel Multi-Family Residential 0.50 Unit Non-Residential 2.00 Acre The use of the latest County Assessor's Secured Roll shall be the basis for the Property Type determination and units/acreage assignments unless better data is available to the City. In addition, if any parcel within the District is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, the Property Type and EDU assignment shall be based on the correct parcel number and/or new parcel number(s) County use code and subsequent property information. If a single parcel has changed to multiple parcels, the EDU assignment and assessment amount applied to each of the new parcels will be recalculated rather than spread the proportionate share of the original assessment. Street Lighting Maintenance District No. 7— City of Rancho Cucamonga 12 Fiscal Year 2024/25 The following table summarizes the Fiscal Year 2024/25 maximum allowable assessment rates for the District: Actual Assessment Total Total Property Type (County Use Code) Rate per EBU Units/Acres Total EBUs Assessment Single Family Residential $33.32 3,936.00 3,936.00 $131,147.52 Totals 3,936.001 3,936.001 $131,147.52 The total amount of maintenance and incidental costs for maintaining the streetlights and traffic signals is assessed to the individual parcels of real property within the District in proportion to the special benefit received by such parcels of real property. The proposed individual assessments are shown on the assessment roll in this report. ASSESSMENT DIAGRAM An Assessment Diagram for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Assessor of the County San Bernardino, at the time this report was prepared, and are incorporated by reference herein and made part of this Engineer's Report. Street Lighting Maintenance District No. 7— City of Rancho Cucamonga 13 Fiscal Year 2024/25 -n to W CD City of Rancho Cucamonga m _ �� _,_••_•, Street Lighting Maintenance District No. 7 RANCHO r —6.• i !" "! i ' -•-•-••- - (North Etiwanda) Q l C� v cc r c a _ _ 1 1 r M N 1-•J a Cn :3 = Q = CD Q mHillside Rd j Wilson Banyan St Z O -` -4 S - I 19th St°.� > n % a Base Line Rd Base Line Rd 0 , 1 s o c Foothill BI# Foothill BI v oArrow Rt Arrow Rt 1 8th St' v � Q�6th Legend g si', � 9 ! w S 4th sj;.•___M•,N__ e,�____ �4th st �_j City Limits rger bie•iec.rnn•ere.rr...-s•.�.e�.:.�..r sar-. Q Q Q Q Q Q Q SLID 7 Bearawem c�abp b.rvbrrr-�-���bb�rei�.r C 'p 5i C /0 .b ue rrt.ba++at+b-B��-r bbb-r ar>�• Vt �e+re b rb rwa h a!r s rr+Vn r ll4brr r A'�� O > Y •le•dub.b b.�b/..+'Yey rP re ee llNrb wrb-e e.•Y. ne A a•roe C—p noft-e e-re aft..•rae-+er w ae �rtieb•ee.nrneeu rrrr, -ae be r m b.4..s..awF r bbw ,M..P��Z a4 w w.n.Cory = -e by•-et w b.�.,m bey,--P -Q de r-.r w w-W _ Miles .•ea sr-b>wmxa:,c,ar r•.bo.wo+m eeya t»+w.-.> d' A �•��•rc•�� - • � � 1.5 0.75 0 1.5 ASSESSMENT ROLL AND ANNEXATIONS Assessment Roll The assessment roll is a listing of the assessment for Fiscal Year 2024/25 apportioned to each lot or parcel, as shown on the last equalized roll of the Assessor of the County of San Bernardino. The following table summarizes the Fiscal Year 2024/25 actual assessments for the District: Actual Assessment Total Total Property Type (County Use Code) Rate per EBU Units/Acres Total EBUs Assessment Single Family Residential $33.32 3,936.00 3,936.00 $131,147.52 Totals 3,936.001 3,936.001 $131,147.52 A copy of the full assessment roll is available for review in the City Clerk's office. Annexations The following annexation is effective for Fiscal Year 2024/25: Annexation Total Units APN Date Project /Acres Total EBUs Type 0226-231-54 02/15/23 DRC2020-00022 1.00 1.00 Single-Family Res 0225-171-04 03/15/23 SUBTT20337 9.00 9.00 Single-Family Res Street Lighting Maintenance District No. 7 — City of Rancho Cucamonga 15 Fiscal Year 2024/25 Annual Engineer's Report Fiscal Year 2024/25 City of Rancho Cucamonga Street Lighting Maintenance District No. 8 (South Etiwanda) ATTACHMENT 17 CITY OF RANCHO CUCAMONGA STREET LIGHTING MAINTENANCE DISTRICT NO. 8 (SOUTH ETIWANDA) 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909.477.2700 Fax: 909.477.2845 CITY COUNCIL L. Dennis Michael, Mayor Lynne B. Kennedy, Mayor Pro Tern Ryan A. Hutchison, Council Member Kristine D. Scott, Council Member Ashley N. Stickler, Council Member CITY STAFF John R. Gillison, City Manager Elisa Cox, Assistant City Manager Jason C. Welday, Director of Engineering Services/City Engineer Micah Martin, Public Works Director Noah Daniels, Finance Director TABLE OF CONTENTS ENGINEER'S LETTER 1 INTRODUCTION 3 Reason for Assessment 3 Process for Annual Assessment 3 PLANS AND SPECIFICATIONS 4 Description of the Boundaries of the District 4 Description of Improvements and Services 4 Map of Improvements 5 ESTIMATE OF COSTS 7 District Budget 7 Definitions of Budget Items 9 METHOD OF ASSESSMENT 10 Overview 10 Special Benefit 11 General Benefit 11 Method of Assessment Spread 11 ASSESSMENT DIAGRAM 13 ASSESSMENT ROLL AND ANNEXATIONS 15 Assessment Roll 15 Annexations 15 ENGINEER'S LETTER WHEREAS, on June 5, 2024, the City Council of Rancho Cucamonga (the "City"), under the Landscaping and Lighting Act of 1972 (the "1972 Act") adopted its Resolution No. 2024-049, a Resolution Initiating Proceedings for the Levy of Annual Assessments for Street Light Maintenance District No. 8 (South Etiwanda) (the "District"); and WHEREAS, the Resolution Initiating Proceedings directed the City Engineer to prepare and file an Annual Engineer's Report for Fiscal Year 2024/25 pursuant to the requirements of the 1972 Act. The Annual Engineer's Report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the maintenance, operations and servicing of the improvements for the District for the referenced fiscal year, a•diagram for the District, showing the area and properties proposed to be assessed, and an assessment of the estimated costs of the maintenance, operations and servicing of the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received; and NOW THEREFORE, the following assessment is proposed to be authorized in order to pay for the acquisition of street lights, the installation of Light Emitting Diode (LED) street lighting, and estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the boundaries of the District in proportion to the special benefit received. The following table summarizes the proposed assessment. Fiscal Year 2024/25 Budget Expenditures Personnel Services $ 52,500 Operations and Maintenance 60,300 Transfer Out 10,680 Total Expenditures Budget 123,480 Revenues Taxes: Estimated Assessments, Net of Estimated Delinquencies 81,120 Anticipated Prior Year Delinquencies Collection 610 Total Revenues Budget 81,730 Contribution to/(Use of) Fund Balance $ (41,750) Total District EBU Count 2,650.78 Actual Assessment per EBU $ 30.60 Maximum Allowable Assessment per EBU $ 193.75 Street Lighting Maintenance District No. 8— City of Rancho Cucamonga 1 Fiscal Year 2024/25 In making the assessments contained herein pursuant to the 1972 Act: 1. I have identified all parcels which will have a special benefit conferred upon them from the improvement described in the Special Benefit Section of this Annual Engineer's Report (the "Specially Benefited Parcels"). For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is included in this Annual Engineer's Report. 2. 1 have evaluated the costs and expenses of the improvements upon the Specially Benefitted Parcels. In making such evaluation: a. The proportionate special benefit derived by each Specially Benefited Parcel from the improvements was determined in relationship to the entirety of the maintenance costs of the improvements; b. No assessment has been imposed on any Specially Benefited Parcel which exceeds the reasonable cost of the proportional special benefit conferred on such parcel from the improvements; and c. Any general benefits from the improvements have been separated from the special benefits and only special benefits have been assessed. I, the undersigned, respectfully submit the enclosed Annual Engineer's Report and, to the best of my knowledge, information and belief, 1 certify that the Annual Engineer's Report and Assessment Diagram included herein have been prepared and computed in accordance with the order of the City Council of the City of Rancho Cucamonga and the Assessment Law. �oQR FFESS//0)* * No.67514 * 07/17/2024 �9r iv1� ' Jason C. Welday Date f OF CW Director of Engineering Services/City Engineer Street Lighting Maintenance District No. 8— City of Rancho Cucamonga 2 Fiscal Year 2024/25 INTRODUCTION Reason for Assessment Approval of the assessment covered by this Engineer's Report will generate the revenue necessary to: Provide for the maintenance and servicing of the improvements described in this Engineer's Report. Maintenance may include but is not limited to, all of the following: the upkeep, repair, removal or replacement of all or any part of any improvement. Servicing means the furnishing of electricity, gas or other illuminating energy for the lighting or appurtenant facilities. This shall also include material, vehicle, equipment, capital improvements, the installation of LED street lighting, and administrative costs associated with the annual administration and operation of the District. Process for Annual Assessment The City cannot levy and collect annual assessments within the District without complying with the procedures specified in the 1972 Act. On an annual basis, an Engineer's Report must be prepared which contains a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. The City Council must also adopt a resolution of intention which: • Declares the intention of the City Council to levy and collect assessments within the District for the fiscal year stated therein. • Generally describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements. • Refers to the District by its distinctive designation and indicate the general location of the District. • Refers to the Engineer's Report, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. • Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment. • States whether the assessment is proposed to increase from the previous year. If the assessments are to be levied in the same or lesser amounts than the maximum assessment amount approved, the City Clerk shall give notice by causing the resolution of intention to be published. Any interested person may, prior to the conclusion of the public hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. Street Lighting Maintenance District No. 8— City of Rancho Cucamonga 3 Fiscal Year 2024/25 During the course or upon conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including the improvements, to the zones within the District, and the proposed diagram or the proposed assessment. The City Council, upon conclusion of the public hearing must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the assessment. If the assessment to be levied exceeds the maximum assessment amount previously approved, the City must comply with the procedures specified in Article XIII D and Proposition 218. The voters in the State of California in November 1996 added Article XIII D to the California Constitution imposing, among other requirements, the necessity for the City to conduct an assessment ballot procedure to enable the owners of each property on which assessments are proposed to be enacted or increased, the opportunity to express their support for, or opposition to, the proposed assessment or increase in such assessment. PLANS AND SPECIFICATIONS The District provides for the administration, maintenance, operations, and servicing of various improvements located within the public right-of-way and dedicated easements within the boundaries of the District. Description of the Boundaries of the District The District is located in the City of Rancho Cucamonga, State of California. The boundaries of the District are generally described as that area of the City known as South Etiwanda, which is generally bounded by Etiwanda Ave on the west, Highland Ave on the north and Foothill Blvd on the south. The southern portion of the District is bounded by East Ave on the east and the northern portion of the District is bounded by the 1-15 Freeway on the east. Reference is also made to the Assessment Diagram included in this Report. Description of Improvements and Services The improvements are the maintenance and servicing of street lights, traffic signals and appurtenant facilities throughout the District. The maintenance and servicing includes, but is not limited to, furnishing electric current for public lighting facilities including street lights and traffic signals, and associated appurtenant facilities. Services include personnel, materials, contracting services, utilities, and all necessary costs associated with the maintenance, replacement and repair required to keep the improvements in operational and satisfactory condition. In addition, it is the City's intention to continue to use cost effective materials, in order to lower expenses of the District. In Fiscal Year 2017/18, the acquisition by the City of the street lights and installation of LED street lighting specially benefiting the properties within the District has been added to the improvements. Street Lighting Maintenance District No. 8— City of Rancho Cucamonga 4 Fiscal Year 2024/25 Map of Improvements The following page shows the map of street light and traffic signal improvements to be maintained using District funds. Street Lighting Maintenance District No. 8 — City of Rancho Cucamonga 5 Fiscal Year 2024/25 -nq) v m City of Rancho Cucamonga Street Lighting Maintenance District No. 8 CD CC i. RANCHO (South Etiwanda) O(a i---- --- •tit fs tt-- . w„ 1 + _ • + U7 =3CD : fl++: !!+•+i l f r-t • • • ! •+f+ !+ /� r 0CD Q ! • r 1p I • ! ! Victoria Park Lane ' • M. 3 ' 00 00 o Base Line Rd 0 .;,; • •if,• O ••,•SSf !•;! • f! f•! • n !*r►h � • O •r• sii!f+ Q cQ Chruch St .t•.+.•.►• :.. 'v �a ! ! ; W a+i ~«',• Legend i •;�r,,• I Streetlights reee .aea.aro ernk.�.,,.M-:.em �,•i a,al>ar w,x:r.- r-'-- M -, K T� z. r � ► J SLD 8 tp Ce tu��x,ayc�a,x�rn:.Y,ttnplee ri: bmtl�Mu.�xry 1 h-w:kxe � ;��■ City Limits 1b Cft N R tm Foothill Bi cf b�tM1bn[�y'atl'snow^.s a F:vL:��urw.e.IFe :3ly y Ib•k'fp t:ucm^Kvpe — � m.E�e'caa:�.,a•,.�.m�w�a �::�����,�,o�� � Miles am inrorrn c.�*aec w 'ni xsa : 0.3 0.15 0 0.3 ESTIMATE OF COSTS The estimated costs of administration, maintenance, operations, and servicing the improvements as described in the Plans and Specifications are summarized below. Each year, as part of the District levy calculation process, the costs and expenses are reviewed and the annual costs are projected for the following fiscal year. District Budget Fiscal Year 2024/25 Budget Expenditures Personnel Services: Regular Salaries $ 35,000 Fringe Benefits 17,500 Subtotal - Personnel 52,500 Operations and Maintenance: Operations and Maintenance: Training 220 Membership Dues 80 O & NVGeneral 430 Contract Services 1,980 Contract Equipment Maintenance/Repair 50 Subtotal - Operations and Maintenance 2,760 Utilities: Electric Utilities 40,400 Assessment Administration 5,700 Admin./General Overhead 11,440 Subtotal - Operations and Maintenance 60,300 Transfer Out - General City Street Lights Fund 10,680 Total Expenditures Budget $ 123,480 Street Lighting Maintenance District No. 8— City of Rancho Cucamonga 7 Fiscal Year 2024/25 Fiscal Year 2024/25 Budget Revenues Taxes: Estimated Assessments, Net of Estimated Delinquencies $ 81,120 Anticipated Prior Year Delinquencies Collection 610 Total Revenues Budget 81,730 Contribution to/(Use of) Fund Balance $ (41,750) Total Gross Estimated Assessments $ 81,113.86 Total District EBU Count 2,650.78 Actual Assessment per EBU - Fiscal Year 2024/25 $ 30.60 Maximum Allowable Assessment per EBU - Fiscal Year 2024/25 $ 193.75 The maximum allowable assessment per Equivalent Benefit Unit (EBU) listed in the District budget above, is the amount which was approved in Fiscal Year 1996/97 and subsequent District annexations. Each year, prior to the assessments being placed on the tax roll, the City will review the budget and determine the amount needed to maintain the improvements for the upcoming fiscal year. The actual assessment per EBU will be based on the total amount of funds needed to maintain the improvements in a satisfactory and healthy condition. The actual assessment amount may be lower than the maximum allowable assessment; however, it may not exceed the maximum unless the increase is approved by the property owners in accordance with Proposition 218. It is the intent of the City to maintain an Operating Reserve which shall not exceed the estimated costs of maintenance and servicing of the improvements prior to December 10 of the fiscal year, or when the City expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. The reserve balance information for the District is as follows: Operating Reserve Estimated Reserve Fund Balance, June 30, 2024 $ 1,777,281 Contribution to/(Use of) Reserve - Fiscal Year 2024/25 (41,750) Estimated Reserve Fund Balance, June 30, 2025 $ 1,735,531 Street Lighting Maintenance District No. 8— City of Rancho Cucamonga 8 Fiscal Year 2024/25 Definitions of Budget Items The following definitions describe the costs and expenses included in the District Budget: Personnel Services: This item includes the costs attributed to the salaries of all full-time and part-time employees dedicated to maintenance of the District improvements. Additionally, this includes benefits available to City employees. Operations and Maintenance: This item includes the costs of City staff to perform maintenance duties within the boundaries of the District. Utilities: This item includes the costs to furnish electricity and telephone services, as required, for the operation and maintenance of the street lights, traffic signals, and appurtenant facilities throughout the District. Assessment Administration: This item includes the cost to all particular departments and staff of the City, and consultants for providing the administration, coordination and management of District services, operations, and incidental expenses related to the District. This item also includes creation of an annual Engineer's Report, resolutions and placing the assessment amounts onto the County tax roll each year, along with responding to any public inquiries and future Proposition 218 balloting proceedings. General Overhead: This item includes the costs of all central services departments of the City for providing the coordination of District services, inspections, annual bid management, responding to public concerns, public education, accounting, auditing and procedural matters associated with the District. This item also includes an allocation for general City staff time for administrative functions and systems that provide for a functional and operational District within the City's administrative structure. Capital Outlay: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include installation of safety lights and other large improvements. Debt Service: This item includes the repayment of interest and principal to the City General Fund for the acquisition of street lights and installation of LED street lighting within the District. In FY 2021/22, the outstanding balance of the interfund was fully repaid. Transfer Out - General City Street Lights Fund: This item includes the cost for the replacement and installation of District owned street lights. These costs are incurred in the General City Street Lights Fund and reimbursed by the District. Other Revenues: This includes other revenues that are not levied through the annual assessments that support the District operations. These other revenues may include: interest earnings and Developer Energizing Fees. Street Lighting Maintenance District No. 8— City of Rancho Cucamonga 9 Fiscal Year 2024/25 METHOD OF ASSESSMENT Overview Pursuant to the 1972 Act and Article XIII D, all parcels that have a special benefit conferred upon them as a result of the maintenance and operation of improvements and services shall be identified, and the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entire costs of the maintenance and operation of improvements. The 1972 Act, permits the establishment of assessment districts for the purpose of providing certain public improvements which include the public lighting facilities, including traffic signals. Section 22573 of the 1972 Act requires that maintenance assessments must be levied according to benefit rather than according to assessed value. This Section states: The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefit to be received by each such lot or parcel from the improvements. The determination of whether or not a lot or parcel will benefit from the improvements shall be made pursuant to the Improvement Act of 1911 (Division 7 commencing with Section 5000) [of the Streets and Highways Code, State of California]. Section 22547 of the 1972 Act also permits the designation of zones of benefit within any individual assessment district if "by reasons or variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvement". Article XIII D, Section 4(a) of the California Constitution limits the amount of any assessment to the proportional special benefit conferred on the property. Article XIII D also provides that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment. Exempted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements and rights-of-ways, public greenbelts and public parkways. The net amount to be assessed may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels. Proposition 218, approved by the voters in November 1996, requires the City to separate general benefit from special benefit, where only special benefit is assessed. Street Lighting Maintenance District No. 8— City of Rancho Cucamonga 10 Fiscal Year 2024/25 Special Benefit The maintenance and servicing of the improvements within the District (which are described in the Description of Improvements and Services Section of this report) are for the benefit of the properties within the District, and as such confer a special and direct benefit to parcels within the District by: • improving the livability, safety, appearance, and desirability for properties within the boundaries of the District, and • ensuring that improvements do not reach a state of deterioration or disrepair so as to be materially detrimental to properties within the District, and • providing for safe vehicular and pedestrian access for properties within the District, and • providing beautification and overall enhancement to properties within the District. The above mentioned items affect the assessed property in a way that is particular and distinct from their effect on other parcels and that real property in general and the public at large do not share. They contribute to a specific enhancement of the properties within the District. Since these improvements, including the community trails, were installed and are maintained specifically for the properties within the District; only properties within the District receive a special benefit and are assessed for said maintenance. General Benefit In addition to the special benefits received by parcels within the District, there are derivative general benefits that are conferred on parcels outside the boundaries of the District which include: • the safety and visual enhancement of the area to persons or vehicles that may travel through the District However, it has been determined that these benefits are derivative and do not provide a direct benefit to parcels outside of the district that are not being assessed. Method of Assessment Spread Each of the parcels within the District is deemed to receive special benefit from the improvements. Each parcel that has a special benefit conferred upon it as a result of the maintenance and operation of improvements are identified and the proportionate special benefit derived by each identified parcel is determined in relationship to the entire costs of the maintenance and operation of the improvements. When the District was formed, Article XIII D and Proposition 218 had not yet been passed. Upon the passage of Article XIII D and the subsequent passage of the Proposition Omnibus Implementation Act, new rules were put into place. Due to the changes in legal requirements, as Street Lighting Maintenance District No. 8— City of Rancho Cucamonga 11 Fiscal Year 2024/25 property annexed to the District after the passage of the Assessment Law, the description of the method of assessment became more refined; however, the assessment per parcel has remained the same since Fiscal Year 1996/97. Further, no parcel included in the District formation or annexations prior to when the language was refined, are now being levied differently than they were at the time the District was formed or the parcels were annexed. To assess special benefit appropriately, it is necessary to relate the different type of parcel improvements to each other. The EBU method of apportionment uses the single-family home as the basic unit of assessment. A single-family home equals one EBU. Every other land-use is converted to EBUs based on an assessment formula that equates to the property's specific development status, type of development (land-use), and size of the property, as compared to a single-family home. The following table provides the weighting factors applied to various land-use types, as assigned by County use code, to determine each parcel's EBU assignment. Land-Use Equivalent Dwelling Units Property Type County Use Code EBU Value Multiplier Single Family Residential 1.00 Parcel Multi-Family Residential 1.00 Unit Non-Residential 2.00 Acre The use of the latest County Assessor's Secured Roll shall be the basis for the Property Type determination and units/acreage assignments, unless better data is available to the City. In addition, if any parcel within the District is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, the Property Type and EBU assignment shall be based on the correct parcel number and/or new parcel number(s) County use code and subsequent property information. If a single parcel has changed to multiple parcels, the EBU assignment and assessment amount applied to each of the new parcels will be recalculated rather than spread the proportionate share of the original assessment. The following table summarizes the Fiscal Year 2024/25 maximum allowable assessment rates for the District: Maximum Allowable Actual Assessment Asessment Rate Total Property Type (County Use Code Rate per EBU per EBU Units/Acres Total EBUs Single Family Residential $193.75 $30.60 1,206.00 1,206.00 Multi-Family Residential 193.75 30.60 1,381.00 1,381.00 Non-Residential 193.75 30.60 31.89 63.78 Street Lighting Maintenance District No. 8— City of Rancho Cucamonga 12 Fiscal Year 2024/25 The total amount of maintenance and incidental costs for maintaining the street lights and traffic signals is assessed to the individual parcels of real property within the District in proportion to the special benefit received by such parcels of real property. The proposed individual assessments are shown on the assessment roll in this report. ASSESSMENT DIAGRAM An Assessment Diagram for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Assessor of the County San Bernardino, at the time this report was prepared, and are incorporated by reference herein and made part of this Engineer's Report. Street Lighting Maintenance District No. 8— City of Rancho Cucamonga 13 Fiscal Year 2024/25 T to F' CD °i ` City of Rancho Cucamonga CD cc •_, _ Street Lighting Maintenance District No. 8 I; RANCHO r..�.�..�..�.�--.. >� 1 1•'^^�-�.— .�..�... �.. — N CUCAMONGA (South Etiwanda) ro cn = �-•, •2 Q,I 1 iv fl'. r•� a, v =i cn u = ¢ = 1 CD i Q � Hillside Rd j > a> m 1 i Q $'i w Wilson Av -M Banyan St o 00 ,• -- �� 19th St' - — O Base Line Rd I-& u Base Line Rd n 0 Foothill Bl Foothill BI Arrow Rt i ; Arrow Rt 1 8th St! 1 Q 1 V th A 1 � Legend w 4th siL --�� 4th St City Limits r�. .om r rk=m-.:�...•wm,me:�.r�,wow p:<r.ar Q Q Q Q Q Q Q SLR $ a ux a rurc.-a cs.w.�otimo-�a a amk�m�a xa arsmaw- re:a.a w,c+o ov,y.ram a.mn�c ro.w.amr.maraomz�v,.anxee C �_ C C a.. M a�re,a ro ra,ewr. ne�a re•ie ,� ,.u mnmm a an E p •a mmroe m Q.—W pa r k+w rm ui memrw sre:+,e neer nu an y nine•Caw..,a re.c Irmo-armor a,r am at ;_ = G1 ..enK+em,n....r.c rmr4 a mnewmb..�.bi b a Oar O.mr.>r 1-m C.m� rar<+vac.NZ ar owar w p+a Q S! Miles �z ms••s.crowns.ar r•..cr,cur war p4 w.a••r OC r rbrd.nrr b.u, 1.$ 0.75 (1 1.5 ASSESSMENT ROLL AND ANNEXATIONS Assessment Roll The assessment roll is a listing of the assessment for Fiscal Year 2024/25 apportioned to each lot or parcel, as shown on the last equalized roll of the Assessor of the County of San Bernardino. The following table summarizes the Fiscal Year 2024/25 actual assessments for the District: Actual Assessment Total Property Type (County Use Code) Rate per EBU Units/Acres Total EBUs Total Assessment Single Family Residential $30.60 1,206.00 1,206.00 $36,903.60 Multi-Family Residential 30.60 1,381.00 1,381.00 42,258.60 Non-Residential 30.60 31.89 63.78 1,951.66 Totals 1 2,618.89 2,650.78 $81,113.86 A copy of the full assessment roll is available for review in the City Clerk's office. Annexations There were no effective annexations for Fiscal Year 2024/25. Street Lighting Maintenance District No. 8 — City of Rancho Cucamonga 15 Fiscal Year 2024/25