Loading...
HomeMy WebLinkAbout15-158 - Resolutions RESOLUTION NO. 15-158 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 NO'S. 1, 2, 3, 4, 5, 6, 7 AND 8, INCLUSIVE, FOR THE FISCAL YEAR 2015/2016 WHEREAS, the City Council of the City of Rancho Cucamonga did on the 15th day of July, 2015, adopt its Resolution of Intention No. 15-118 (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 No's. 1, 2, 3, 4, 5, 6, 7 and 8 (each a "District" and collectively the "Districts") for Fiscal Year 2015/2016 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, subsequent to the preliminary approval of the Annual Engineer's Reports, the Assessment Engineer revised each of the Annual Engineer's Reports (each a "Revised Annual Engineer's Report" and collectively the "Revised Annual Engineer's Reports") to add to such reports information regarding the annexations, if any, to each applicable District during Fiscal Year 2015/2016 and to make certain other insubstantial formatting revisions to the summary of assessments and the District budgets that did not result in an increase of the expenditure budget for the Districts, or any one of them, or the aggregate assessments or any individual assessment proposed to be levied within the Districts, or any one, of them; 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, BE IT RESOLVED, DETERMINED AND ORDERED by the City Council of the City of Rancho Cucamonga, as follows: RESOLUTION NO. 15-158 - Page 1 of 3 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 2015/2016 proposed to be levied within each District as set forth in the applicable Revised 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 2015/2016 within such District are not deemed to be "increased" over the maximum authorized annual assessments. SECTION 2. The final assessments and diagrams for the proceedings, as contained in the Revised Annual Engineer's Report for each of the Districts, are hereby approved and confirmed. The assessments for the Districts contained in the Revised Annual Engineer's Reports for Fiscal Year 2015/2016 are hereby levied upon the respective lots or parcels in the Districts in the amounts as set forth in applicable Revised 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 2015. 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 B. The assessments as above confirmed and levied for these proceedings will provide revenue and relate to the fiscal year commencing July 1, 2015 and ending June 30, 2015. RESOLUTION NO. 15-158 - Page 2 of 3 PASSED, APPROVED, AND ADOPTED this 511 day of August 2015. AYES: Alexander, Kennedy, Michael, Spagnolo, Williams NOES: None ABSENT: None ABSTAINED: None Dennis Michael, Mayor ATTEST: vv�f ce C. Reynolds, City Itlerk I, JANICE C. REYNOLDS, CITY CLERK of the City of Rancho Cucamonga, California, do hereby certify that the foregoing Resolution was duly passed, approved and adopted by the City Council of the City of Rancho Cucamonga, California, at a Regular Meeting of said City Council held on the 511 day of August 2015. Executed this 61h day of August 2015, at Rancho Cucamonga, California. Qa� P.�P �eda e, ice C. Reynolds, City Clerk RESOLUTION NO. 15-158 - Page 3 of 3 Annual Engineer's Report Fiscal Year 2015/2016 City of Rancho Cucamonga Street Lighting Maintenance District No. 1 (Arterials) CITY OF RANCHO CUCAMONGA STREET LIGHTING MAINTENANCE DISTRICT NO. 1 (ARTERIALS) 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909.477.2740 Fax: 909.477.2741 CITY COUNCIL L. Dennis Michael, Mayor Sam Spagnolo, Mayor Pro Tem William Alexander, Council Member Lynne B. Kennedy, Council Member Diane Williams, Council Member CITY STAFF John R. Gillison, City Manager Linda D. Daniels, Assistant City Manager Lori E. Sassoon, Deputy City Manager/Administrative Services William Wittkopf, Public Works Director Ingrid Y. Bruce, Deputy Director/Department of Innovation & Technology Christopher Bopko, Management Analyst III TABLE OF CONTENTS Engineer's Letter 1 Introduction 3 Reason for Assessment Process for Annual Assessment Plans and Specifications 5 Description of the Boundaries of the District Description of Improvements and Services Map of Improvements Estimate of Costs 7 District Budget Definitions of Budget Items Method of Assessment 10 General General Benefit Special Benefit Method of Assessment Spread Assessment Diagram 13 Assessment Roll 15 Assessment Roll Annexations ENGINEER'S LETTER WHEREAS, on July 15, 2015 the City Council of Rancho Cucamonga (the "City"), under the Landscape and Lighting Act of 1972 (the 1972 Act") adopted its Resolution No. 15-116, 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 NBS to prepare and file an Annual Engineer's Report for Fiscal Year 2015/16 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 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 the 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. SUMMARY OF ASSESSMENT Fiscal Year 2015/16 Total Estimated Assessment $ 806,440.00 Less Anticipated Delinquencies 30230.001 Total Estimated Revenue $ 836,670.00 Plus Use of Operating Reserve Fund 119.320.00 Total Expenditure Budget $ 955,990.00 Total District EBU Count 45,382.66 Actual Assessment per EBU $ 17.77 Maximum Allowable Assessment per EBU $ 17.77 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. Street Lighting Maintenance District No. 1-City of Rancho Cucamonga 1 Fiscal Year 2015/16 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 entirely of the maintenance costs of the improvements; b. No assessment has been imposed on any Specially Benefitted 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, the Annual Engineer's Report, Assessment Diagram 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. Q�OFESSIA,,4 W SlFG�c� y No.0053672, m Exp.6I'Y 9�OF CAC�F�Q Mark A. Steuer, Director of Engineering Services/City Engineer Street Lighting Maintenance District No. 1—City of Rancho Cucamonga 2 Fiscal Year 2015/16 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 or facility such as paseos, community trails, fencing and irrigation systems, and providing for the growth, vigor and care of the trees and landscape plant materials. Servicing means the furnishing of electricity, gas or other illuminating energy for the lighting of landscape or appurtenant facilities. This shall also include material, vehicle, equipment, capital improvements 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 assessment 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 assessment 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 assessment district by its distinctive designation and indicate the general location of the district. • Refers to the report of the engineer, on file with the clerk, for a full and detailed description of the improvements, the boundaries of the assessment 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 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 Street Lighting Maintenance District No. 1—City of Rancho Cucamonga 3 Fiscal Year 2015/16 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. 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 changes in the improvements, any zones within the assessment 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. The basic steps of the assessment ballot procedure are outlined below. The City must prepare a Notice of Public Hearing ("Notice"), which describes, along with other mandated information, the reason for the proposed assessments, and to provide a date and time of a public hearing to be held on the matter. The City must also prepare an assessment ballot, which clearly gives the property owner the ability to sign and mark their assessment ballot either in favor of, or in opposition to the proposed assessment. The Notice and assessment ballot are mailed to each affected property owner within the District a minimum of 45 days prior to the public hearing date as shown in the Notice. The City may also hold a community meeting with the property owners to discuss the issues facing the District and to answer property owner questions directly. After the Notice and assessment ballot are mailed, property owners are given until the close of the public hearing, stated in the Notice, to return their signed and marked assessment ballot. During the public hearing, property owners are given the opportunity to address the City Council and ask questions or voice their concerns. At the public hearing, the returned assessment ballots received prior to the close of the public hearing are tabulated, weighted by the proposed assessment amount on each property and the results are announced by the City Council. Article XIII D provides that if, as a result of the assessment ballot proceeding, a majority protest is found to exist, the City Council shall not have the authority to levy and collect the assessments as proposed. A majority protest exists if the assessments represented by ballots submitted in opposition exceed those submitted in favor of the assessment. All returned ballots are tabulated and weighted according to the financial obligation of each particular parcel. If there is no majority protest as described above, the City Council may approve the proposed assessments. If the is a majority protest, as described above, the City will not levy and collect any assessments. Street Lighting Maintenance District No. 1—City of Rancho Cucamonga 4 Fiscal Year 2015/16 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. 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 2015/16 Street Lighting Maintenance District No. 1 N Street Lights and Traffic Signals Improvements < a a E E ; J Z 3 HILLSIDERD HILLSIDE RD m u v Hilkidm WILSON AV WILSONAV a' WILSONAV WILSONAV BEECH AV wl.oA, m G w emRpe fir= a BANYAN ST > BANYAN ST to la Z a g F J C ¢ m W m z C ¢ 12f00FRP 12700FRP HIGHLAND AV w 6210 FW H/O 1210 FW SR am 19TH ST p a > _ G AV w 1kh w ¢ > o x U a 8�s Drys Rd BASE LINE RD v w sax One Ra o CHUR CH ST I w = o Fndhilll Q FOOTHI LL BL �(� Fadhlll yO pip ARE OVJ RT - w Rt w m _ ) u 9TH ST ¢ JERSEY BL � ro elh 8TH ST Q - ami C a a 7TH ST V 7TH ST 6�, i r ' 'karma' Sr sTHST m Legend qN ¢ 6TH ST w c�,mmmeam.mno,omfi..F.m®m.l CO sAtle byma bmua LLe Gryu(RssVCu®mp SCE Streetlights .;, N capmmi,.,o+b..mauaarmma,es.msaa L [MNGry J Pa rboCummpmem aa,mafi.,aa Q (o 4TH ST y O S1-D1 Boundary i b6mLm pP1eJ mya b,ee Rcum,bJe m.dY ro 2 - City Boundary v m.cn�Rmm.c.m.mpm0mayma mmmJm®.. ' e,a.m„ry m.ilmmcmoa mEmmmom,,dueae, 2 { � I � 3 rn Il Wm,lmmlpae rJ.J nm.a.eu umecbamb,Lome � i w' fimm,fv apaeNa rygmc heGry(RmAOGumQa ,kll u.mvmpm ,. myb�e,¢.m+Jlm..re,. 1 0.5 0 p1 Mile ens b.n. 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 assessment district levy calculation process, the costs and expenses are reviewed and the annual costs are projected for the following fiscal year. District Budget Estimated 2015/16 Budget Personnel Services Regular Payroll $ 13,490.00 Part-time Salaries 0.00 Fringe Benefits 6.340.00 Subtotal Personnel $ 19,830.00 Operations and Maintenance Training $ 180.00 Membership Dues 50.00 Operations and Maintenance 7,990.00 Cellular Technology 1,000.00 Equip Operations & Maintenance 500.00 Utilities Telephone Utilities 1,500.00 Electric Utilities 728,560.00 Assessment Administration 160,940.00 General Overhead 37,090.00 Interfund Allocation 0.00 Subtotal Operations and Maintenance $ 937,810.00 Capital Expenditures Capital Projects $ 0.00 Subtotal Capital Expenditures $ 0.00 Total Expenditure Budget $ 957,640.00 Total Estimated Assessment $ 806,440.00 Plus Anticipated Delinquencies 30.230.00 Total Estimated Revenue $ 836,670.00 Plus Use of Operating Reserve Fund 119,320.00 Net Revenues/Expenditures $ 955,990.00 Total Estimated Assessment $ 806,449.86 Total District EBU Count 45,382.66 Actual Assessment per EBU - Fiscal Year 2015/16 $ 17.77 Maximum Allowable Assessment per EBU - Fiscal Year 2015/16 $ 17.77 'Includes rounding as each parcel's annual assessment must be rounded down to the nearest even cent for County tax roll purposes. Street Lighting Maintenance District No. 1-City of Rancho Cucamonga 7 Fiscal Year 2015/16 The maximum allowable assessment per EBU listed in the District budget above, is the amount which was approved in 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: Estimated Fiscal Year Ending June 30, 2015 Reserve Fund Balance $ 855,158.00 Use of Operating Reserve Fund - Fiscal Year 2015/16 (120,970.00) Operating Reserve Contribution - Fiscal Year 2015/16 0.00 Estimated Fiscal Year Ending June 30, 2016 Reserve Fund Balance $ 735,838.00 Definitions of Budget Items The following definitions describe the costs and expenses included in the District Budget: Personnel Services Regular Salaries: This item includes the costs attributed to the salaries of all full-time employees dedicated to maintenance of the District improvements. Part Time Salaries: This item includes the costs attributed to the salaries of all part time employees dedicated to maintenance of the District improvements. Fringe Benefits: This item includes the benefits available to City employees: health care, vacation, sick time, and retirement fund. Operations and Maintenance Training: International Municipal Signal Association (ISMA) Certification. The cost is split evenly between all of the City's Street Light Maintenance Districts. Membership Dues: ISMA dues. The cost is split evenly between all of the City's Street Light and Maintenance Districts. Utilities - Telephones: This item includes the costs for master controllers for dial-in data lines for uploading, downloading and observing system operations for traffic signals. Street Lighting Maintenance District No. 1-City of Rancho Cucamonga 8 Fiscal Year 2015/16 Utilities - Electric: This item includes the costs to furnish electricity required for the operation and maintenance of the street lights and traffic signals. 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 departments and staff 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 assessment district within the City's administrative structure. Capital Expenditures: Capital Projects: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include new monuments, irrigation systems, and other large improvements. Operating Reserve Collection: Operating Reserve Collection: This item includes the amount to be collected to maintain reserves to enable the City to pay for the maintenance and servicing of the improvements prior to December 10 of the fiscal year, or whenever the City expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. The Reserve Fund contribution will continue until such a time the Reserve Fund balance is approximately one half of the annual costs. The fund may be allowed to accumulate in anticipation of any unforeseen expenses not included in the yearly maintenance costs. This may include, but is not limited to, tree replacements, repair of damaged equipment due to vandalism, storms and other similar events. Street Lighting Maintenance District No. 1-City of Rancho Cucamonga 9 Fiscal Year 2015/16 METHOD OF ASSESSMENT General 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]." 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" (Sec. 22547). 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. 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: Street Lighting Maintenance District No. 1-City of Rancho Cucamonga 10 Fiscal Year 2015/16 • improving the livability, 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, shade 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 in 1984, 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 the 19.96/97 Fiscal Year. 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 Street Lighting Maintenance District No. 1—City of Rancho Cucamonga 11 Fiscal Year 2015/16 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-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 2015/16 maximum allowable assessment rates for the District: Property Type Maximum Allowable Actual Assessment Total Total (County Use Code) Assessment Rate Rate per EBU Units/Acres EBUs per EBU Single Family Residential $17.77 $17.77 29,060.00 29,060.00 Multi-Family Residential 17.77 17.77 9,943.00 9,943.00 Non Residential 17.77 17.77 3,189.83 6,379.66 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. Street Lighting Maintenance District No. 1—City of Rancho Cucamonga 12 Fiscal Year 2015/16 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 2015/16 Yi?eie 331 I .ai sS A IdI—I! 2 � x 92't?�4`73�2 W 39 IS37 �.¢ T co ' a ` a to ! i<e:7(R 3i° CD to A ao rn �7'' ni s Grove Av xl 79„[ 1x3444,+ a a it2- '2 IS=412jji�12 1:A�.S93i�� Carnelian St Vineyard Av rn S SA Hellman Av N Hellman Av Archibald Av Archibald Av Hermosa Av Hermosa Av Haven Av Haven Av Milliken Av Milliken Av Rochester Av Rochester Av Etiwanda Av � Er East Av D p �, EO O_ W f N M 0 A r- ti N a o SQ Cherry Av �'_ o r (� CL v ? r y. C1 Street Lighting Maintenance District No. 1—City of Rancho Cucamonga 14 Fiscal Year 2015/16 ASSESSMENT ROLL Assessment Roll The assessment roll is a listing of the assessment for Fiscal Year 2015/16 apportioned to each lot or parcel, as shown on the last equalized roll of the Assessor of the County of San Bernardino. The following tables summarize the Fiscal Year 2015/16 maximum and actual assessments for the District: Maximum Allowable Maximum Property Type Assessment Rate Total Total Allowable (County Use Codeper EBU Units/Acres EBUs Assessment Single Family Residential $17.77 29,060.00 29,060.00 $516,396.20 Multi-Family Residential 17.77 9,943.00 9,943.00 176,687.11 Non Residential 17.77 3,189.83 6,379.66 113,366.95 TOTALS 1 1 42,192.83 1 45,382.66 $806,449.86 *"Actual Assessment Rate per EBU" is the same as "Maximum Allowable Assessment Rate Per EBU". A copy of the full assessment roll is available for review in the City Clerk's office. Annexations The following Annexations are effective for the 2015/16 Fiscal Year. Annexation Total Total Parcel Number Date Project Units/Acres EBUs PropertyType Single Family 0227-012-24 1/16/2013 TR18826 8.00 8.00 Residential DRC2011- 0229-192-09 & 18 2/6/2013 00255 1.81 3.62 Commercial/Industrial Single Family 1100-131-01 6/5/2013 TR18466 43.00 43.00 Residential 0225-161-19, 32- Single Family 34 6/19/2013 TR18744 30.00 30.00 Residential DRC2012- 0207-222-05 7/3/2013 00932 0.95 1.90 Commercial/Industrial 0209-151-27, 37 & 7/17/2013 PM18794 20.24 40.48 Commercial/Industrial 0209-161-24 0209-411-33 7/17/2013 PM19397 20.60 41.20 Commercial/Industrial DRC2012- 0209-032-40 7/17/2013 00790 3.17 6.34 Commercial/Industrial DRC2013- 0209-021-05 9/4/2013 00053 9.25 18.50 Commercial/Industrial DRC2013- Single Family 1062-211-06 11/6/2013 00427 1.00 1.00 Residential DRC2012- 0229-181-03 & 11 11/6/2013 01065 4.77 9.54 Commercial/Industrial Street Lighting Maintenance District No. 1—City of Rancho Cucamonga 15 Fiscal Year 2015/16 1089-081-16, 17, 11/6/2013 TR18819 17.00 17.00 Single Family 20 & 21 Residential Single Family 0225-161-13 11/6/2013 TR18709 12.00 12.00 Residential Street Lighting Maintenance District No. 1—City of Rancho Cucamonga 16 Fiscal Year 2015/16 Annual Engineer's Report Fiscal Year 2015/2016 City of Rancho Cucamonga Street Lighting Maintenance District No. 2 (Local Streets) CITY OF RANCHO CUCAMONGA STREET LIGHTING MAINTENANCE DISTRICT NO. 2 (LOCAL STREETS) 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909.477.2740 Fax: 909.477.2741 CITY COUNCIL L. Dennis Michael, Mayor Sam Spagnolo, Mayor Pro Tem William Alexander, Council Member Lynne B. Kennedy, Council Member Diane Williams, Council Member CITY STAFF John R. Gillison, City Manager Linda D. Daniels, Assistant City Manager Lori E. Sassoon, Deputy City Manager/Administrative Services William Wittkopf, Public Works Director Ingrid Y. Bruce, Deputy Director/Department of Innovation & Technology Christopher Bopko, Management Analyst III TABLE OF CONTENTS Engineer's Letter 1 Introduction 3 Reason for Assessment Process for Annual Assessment Plans and Specifications 5 Description of the Boundaries of the District Description of Improvements and Services Map of Improvements Estimate of Costs 7 District Budget Definitions of Budget Items Method of Assessment 10 General General Benefit Special Benefit Method of Assessment Spread Assessment Diagram 13 Assessment Roll 15 Assessment Roll Annexations ENGINEER'S LETTER WHEREAS, on July 15, 2015, the City Council of Rancho Cucamonga (the "City'), under the Landscape and Lighting Act of 1972 (the "1972 Act') adopted its Resolution No. 15-116, 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 NBS to prepare and file an Annual Engineer's Report for Fiscal Year 2015/16 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 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 the 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. SUMMARY OF ASSESSMENT Fiscal Year 2015/16 Total Estimated Assessment $ 363,810.00 Plus Gas Tax Contribution 350,170.00 Plus Interest Earned 1,820.00 Total Estimated Revenue $ 715,800.00 Plus Use of Operating Reserve Fund 2,580.00 Total Expenditure Budget $ 718,380.00 Total District EBU Count 9,102.32 Actual Assessment per EBU $ 39.97 Maximum Allowable Assessment per EBU $ 39.97 In making the assessments contained herein pursuant to the 1972 Act: 1. 1 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 Street Lighting Maintenance District No. 2—City of Rancho Cucamonga 1 Fiscal Year 2015/16 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 entirely of the maintenance costs of the improvements; b. No assessment has been imposed on any Specially Benefitted 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, the Annual Engineer's Report, Assessment Diagram 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. �QFIOFESSIC, RE .9 Ey � No.0059672 � EV.Wo3 I 2 CF CALIFO�a\P Mark A. Steuer, Director of Engineering Services/City Engineer Street Lighting Maintenance District No. 2—City of Rancho Cucamonga 2 Fiscal Year 2015/16 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 or facility such as paseos, community trails, fencing and irrigation systems, and providing for the growth, vigor and care of the trees and landscape plant materials. Servicing means the furnishing of electricity, gas or other illuminating energy for the lighting of landscape or appurtenant facilities. This shall also include material, vehicle, equipment, capital improvements 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 assessment 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 assessment 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 assessment district by its distinctive designation and indicate the general location of the district. • Refers to the report of the engineer, on file with the clerk, for a full and detailed description of the improvements, the boundaries of the assessment 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 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 Street Lighting Maintenance District No. 2—City of Rancho Cucamonga 3 Fiscal Year 2015/16 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. 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 changes in the improvements, any zones within the assessment 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. The basic steps of the assessment ballot procedure are outlined below. The City must prepare a Notice of Public Hearing ("Notice"), which describes, along with other mandated information, the reason for the proposed assessments, and to provide a date and time of a public hearing to be held on the matter. The City must also prepare an assessment ballot, which clearly gives the property owner the ability to sign and mark their assessment ballot either in favor of, or in opposition to the proposed assessment. The Notice and assessment ballot are mailed to each affected property owner within the District a minimum of 45 days prior to the public hearing date as shown in the Notice. The City may also hold a community meeting with the property owners to discuss the issues facing the District and to answer property owner questions directly. After the Notice and assessment ballot are mailed, property owners are given until the close of the public hearing, stated in the Notice, to return their signed and marked assessment ballot. During the public hearing, property owners are given the opportunity to address the City Council and ask questions or voice their concerns. At the public hearing, the returned assessment ballots received prior to the close of the public hearing are tabulated, weighted by the proposed assessment amount on each property and the results are announced by the City Council. Article XIII D provides that if, as a result of the assessment ballot proceeding, a majority protest is found to exist, the City Council shall not have the authority to levy and collect the assessments as proposed. A majority protest exists if the assessments represented by ballots submitted in opposition exceed those submitted in favor of the assessment. All returned ballots are tabulated and weighted according to the financial obligation of each particular parcel. If there is no majority protest as described above, the City Council may approve the proposed assessments. If the is a majority protest, as described above, the City will not levy and collect any assessments. Street Lighting Maintenance District No. 2-City of Rancho Cucamonga 4 Fiscal Year 2015/16 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 Avenue. 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. May 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 2015/16 Street Lighting Maintenance District No. 2 N Street Lights and Traffic Signals Improvements E E € U 2 S —� w i zj 1 _� � i HILLSIDE RO ••'m HILLtSIBE RD 1 Ir Hna�da .a. WILSON AV WI SON AV a' WILSON AV WILSON'..AV BEECH AV mnimn Av N Q G i y BANY NIST lYQWn 'BANYAN S T. 1 •• Z d g F 0 w w .• �m > O N z < Q, •12d00FRF +24010FRp HIGHL'ANO All w 1210 FW—HIO 1210 FW ¢ SRa1a O U cern 19TH ST O Z IV G N qlr w LJ z 0 r,w F K w eaae one Rd BASE LINE RO w ea:B Una RJ O T Y • Q 5 U CHURCH ST _ w � N v w O _ Z Foomeia a FOOTHILL BL �QQ Famhui Ei u J prtvw ARRDW RT x C 9TH ST o JERSEY BL C e�h s aTH ST m c a 2 7TH ST V 7TH-ST 6T�y ,..a 10 If67H ST vl ah a 6TH ST 5 C O :wkM reswaame Gnalexmciomga � L L .•Immme.m eaM.moumofa%mA4m®em O � � MCge(Rr�Osee�mtuvu-hmm Z J »m—n.,qm--r.,rv.rma.mm.rmaa pn 9 4T ST fj Y aq—q a•urymmem r e�6—a m ay Y SCE Streetlights mayms.ir�.M1.w raau u.—..-•urabmu E n 8 le.c.yu•Qem•ac�.wmauoyre.ur.i,m.-.. r € i - 3 Q SLD 2 mmme..r..ar um....mm—a..rin ra 3 � w 6muab•ywuil..m Ibety alQWaCeemla aYl•a4e aaq,m uiseayMiAq,gmear(h ••�q;,;,�;;b�,,;;� 2 1 0 2 Miles —•-- City Boundary nem kry o.•em,ermmu.m.eumaou malak 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 assessment district levy calculation process, the costs and expenses are reviewed and the annual costs are projected for the following fiscal year. District Budget Estimated 2015/16 Budget Personnel Services Regular Payroll $ 0.00 Part-time Salaries 0.00 Fringe Benefits 0.00 Subtotal Personnel $ 0.00 Operations and Maintenance Training $ 0.00 Membership Dues 0.00 Operations and Maintenance 0.00 Equip Operations & Maintenance 0.00 Contract Services 0.00 Utilities Telephone Utilities 0.00 Electric Utilities 678,480.00 Assessment Administration 37,400.00 General Overhead 5,080.00 Interfund Allocation 0.00 Subtotal Operations and Maintenance $ 720,960.00 Capital Expenditures Capital Proiects $ 0.00 Subtotal Capital Expenditures $ 0.00 Total Expenditure Budget $ 720,960.00 Total Estimated Assessment $ 363,810.00 Plus Gas Tax Contribution 350,170.00 Plus Interest Earned 1.820.00 Total Estimated Revenue $ 715,800.00 Plus Use of Operating Reserve Fund 2,580.00 Net Revenues/Expenditures $ 718,380.00 Total Estimated Assessment $ 363,819.73 Total District EBU Count 9,102.32 Actual Assessment per EBU — Fiscal Year 2015/16 $ 39.97 Maximum Allowable Assessment per EBU — Fiscal Year 2015/16 $ 39.97 Street Lighting Maintenance District No. 2—City of Rancho Cucamonga 7 Fiscal Year 2015/16 The maximum allowable assessment per EBU listed in the District budget above, is the amount which was approved in 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: Estimated Fiscal Year Ending June 30, 2015 Reserve Fund Balance $ 208,392.00 Use of Operating Reserve Fund - Fiscal Year 2015/16 (2,580.00) Operating Reserve Contribution - Fiscal Year 2015/16 0.00 Estimated Fiscal Year Ending June 30, 2016 Reserve Fund Balance $ 205,812.00 Definitions of Budget Items The following definitions describe the costs and expenses included in the District Budget: Personnel Services Regular Salaries: This item includes the costs attributed to the salaries of all full-time employees dedicated to maintenance of the District improvements. Part Time Salaries: This item includes the costs attributed to the salaries of all part time employees dedicated to maintenance of the District improvements. Fringe Benefits: This item includes the benefits available to City employees: health care, vacation, sick time, and retirement fund. Operations and Maintenance Training: International Municipal Signal Association (ISMA) Certification. The cost is split evenly between all of the City's Street Light Maintenance Districts. Membership Dues: ISMA dues. The cost is split evenly between all of the City's Street Light and Maintenance Districts. Utilities - Telephones: This item includes the costs for master controllers for dial-in data lines for uploading, downloading and observing system operations for traffic signals. Utilities - Electric: This item includes the costs to furnish electricity required for the operation and maintenance of the street lights and traffic signals. Street Lighting Maintenance District No. 2-City of Rancho Cucamonga 8 Fiscal Year 2015/16 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 departments and staff 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 assessment district within the City's administrative structure. Capital Expenditures: Capital Proiects: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include new monuments, irrigation systems, and other large improvements. Operating Reserve Collection: Operatino Reserve Collection: This item includes the amount to be collected to maintain reserves to enable the City to pay for the maintenance and servicing of the improvements prior to December 10 of the fiscal year, or whenever the City expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. The Reserve Fund contribution will continue until such a time the Reserve Fund balance is approximately one half of the annual costs. The fund may be allowed to accumulate in anticipation of any unforeseen expenses not included in the yearly maintenance costs. This may include, but is not limited to, tree replacements, repair of damaged equipment due to vandalism, storms and other similar events. Street Lighting Maintenance District No. 2—City of Rancho Cucamonga 9 Fiscal Year 2015/16 METHOD OF ASSESSMENT General 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]." 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' (Sec. 22547). 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. 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: Street Lighting Maintenance District No. 2-City of Rancho Cucamonga 10 Fiscal Year 2015/16 • improving the livability, 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, shade 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 in 1983, 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 the 1996/97 Fiscal Year. 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 Street Lighting Maintenance District No. 2—City of Rancho Cucamonga 11 Fiscal Year 2015/16 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 2015/16 maximum allowable assessment rates for the District: Property Type Maximum Allowable Actual Assessment Total Total (County Use Code) Assessment Rate Rate per EBU Units/Acres EBUs per EBU Single Family Residential $39.97 $39.97 7,033.00 7,033.00 Multi-Family Residential 39.97 39.97 1,989.00 1,989.00 Non Residential 39.97 39.97 40.16 80.32 The total amount of maintenance and incidental costs for maintaining the street lights and traffic signals is assessed to the individual parcels of real property within the District in proportion to the special benefit received by such parcels of real property. The proposed individual assessments are shown on the assessment roll in this report. Street Lighting Maintenance District No. 2—City of Rancho Cucamonga 12 Fiscal Year 2015/16 ASSESSMENT DIAGRAM An Assessment Diagram for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the County Assessor of the County San Bernardino, at the time this report was prepared, and are incorporated by reference herein and made part of this Engineer's Report. Street Lighting Maintenance District No. 2—City of Rancho Cucamonga 13 Fiscal Year 2015/16 ea$a5�•� ��: ; 4 i CD g < ,f� �}3€ ,itY m if. SSSa �4 -n rn A g Moil D o03 0 m a yk 7ijr� r/1 .31 (� Grove Av � 1z7�iaf9si�4 Carnelian St Vineyard Av rn A S S � Hellman Av N Hellman Av Archibald Av Archibald Av Hermosa Av Hermosa Av Haven Av Haven Av Milliken Av .............. Milliken Av Y � Rochester Av ' j Rochester Av � 1.._.._.._.._.------ CD Day Creek BlI (D r �Q i Etiwanda Av Etiwanda Av i = 9East Av D T---- Q. CD CD a 8 to N Cb ! n1 a Cherry Av (D ® a r- r N r 3 �+ n N Street Lighting Maintenance District No. 2 —City of Rancho Cucamonga 14 Fiscal Year 2015/16 ASSESSMENT ROLL Assessment Roll The assessment roll is a listing of the assessment for Fiscal Year 2015/16 apportioned to each lot or parcel, as shown on the last equalized roll of the Assessor of the County of San Bernardino. The following tables summarize the Fiscal Year 2015/16 maximum and actual assessments for the District: Maximum Allowable Maximum Property Type Assessment Rate Total Total Allowable (County Use Codeper EBU Units/Acres EBUs Assessment Single Family Residential $39.97 7,033.00 7,033.00 $281,109.01 Multi-Family Residential 39.97 1,989.00 1,989.00 79,500.33 Non Residential 39.97 40.16 80.32 3,210.39 TOTALS 1 1 9,062.16 1 9,102.32 1 $363,819.73 *"Actual Assessment Rate per EBU" is the same as "Maximum Allowable Assessment Rate Per EBU". A copy of the full assessment roll is available for review in the City Clerk's office. Annexations The following Annexations are effective for the 2015/16 Fiscal Year. APN Annexation Project Total Total Property Type Date Name Units/Acres EBUS 0207-201- 03/19/14 TR18817 94.00 94.00 Single Family 01, 21 & 44 Residential 0229-041- 05/21/14 TR 18870-1 166.00 166.00 Single Family 09 Residential 0209-122- 08/06/14 PM 19505 2.00 2.00 Single Family 01 Residential 0229-041- 09/17/14 TR 18870 125.00 125.00 Single Family 12 Residential 1074-281- 10/01/14 DRC2013- 1.00 1.00 Single Family 09 01001 Residential Street Lighting Maintenance District No. 2-City of Rancho Cucamonga 15 Fiscal Year 2015/16 Annual Engineer's Report Fiscal Year 2015/2016 City of Rancho Cucamonga Street Lighting Maintenance District No. 3 (Victoria Planned Community) CITY OF RANCHO CUCAMONGA STREET LIGHTING MAINTENANCE DISTRICT NO. 3 (VICTORIA PLANNED COMMUNITY) 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909.477.2740 Fax: 909.477.2741 CITY COUNCIL L. Dennis Michael, Mayor Sam Spagnolo, Mayor Pro Tem William Alexander, Council Member Lynne B. Kennedy, Council Member Diane Williams, Council Member CITY STAFF John R. Gillison, City Manager Linda D. Daniels, Assistant City Manager Lori E. Sassoon, Deputy City Manager/Administrative Services William Wittkopf, Public Works Director Ingrid Y. Bruce, Deputy Director/Department of Innovation & Technology Christopher Bopko, Management Analyst III TABLE OF CONTENTS Engineer's Letter 1 Introduction 3 Reason for Assessment Process for Annual Assessment Plans and Specifications 6 Description of the Boundaries of the District Description of Improvements and Services Map of Improvements Estimate of Costs 8 District Budget Definitions of Budget Items Method of Assessment 11 General General Benefit Special Benefit Method of Assessment Spread Assessment Diagram 14 Assessment Roll 16 Assessment Roll Annexations ENGINEER'S LETTER WHEREAS, on July 15, 2015, the City Council of Rancho Cucamonga (the "City"), under the Landscape and Lighting Act of 1972 (the "1972 Act") adopted its Resolution No. 15-116, 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 NBS to prepare and file an Annual Engineer's Report for Fiscal Year 2015/16 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 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 the 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. SUMMARY OF ASSESSMENT Fiscal Year 2015/16 Total Estimated Assessment $ 352,370.00 Plus Anticipated Delinquencies 14,680.00 Total Estimated Revenue $ 367,050.00 Less Operation Reserve Fund Contribution (38,510.001 Total Expenditure Budget $ 328,540.00 Total District EBU Count 7,473.42 Actual Assessment per EBU $ 47.15 Maximum Allowable Assessment per EBU $ 47.15 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. Street Lighting Maintenance District No. 3—City of Rancho Cucamonga 1 Fiscal Year 2015/16 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 entirely of the maintenance costs of the improvements; b. No assessment has been, imposed on any Specially Benefitted 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, the Annual Engineer's Report, Assessment Diagram 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 OFESSIOk �pNDREWS q.�cEy wlip Z No.C653672 �Of CAU�� Mark A. Steuer, Director of Engineering Services/City Engineer Street Lighting Maintenance District No. 3—City of Rancho Cucamonga 2 Fiscal Year 2015/16 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 or facility such as paseos, community trails, fencing and irrigation systems, and providing for the growth, vigor and care of the trees and landscape plant materials. Servicing means the furnishing of electricity, gas or other illuminating energy for the lighting of landscape or appurtenant facilities. This shall also include material, vehicle, equipment, capital improvements 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 assessment 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 assessment 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 assessment district by its distinctive designation and indicate the general location of the district. • Refers to the report of the engineer, on file with the clerk, for a full and detailed description of the improvements, the boundaries of the assessment 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. Street lighting Maintenance District No. 3—City of Rancho Cucamonga 3 Fiscal Year 2015/16 If the assessments are to be levied in the same or lesser amounts than the maximum assessment amount approved, the 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. 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 changes in the improvements, any zones within the assessment 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. The basic steps of the assessment ballot procedure are outlined below. The City must prepare a Notice of Public Hearing ("Notice"), which describes, along with other mandated information, the reason for the proposed assessments, and to provide a date and time of a public hearing to be held on the matter. The City must also prepare an assessment ballot, which clearly gives the property owner the ability to sign and mark their assessment ballot either in favor of, or in opposition to the proposed assessment. The Notice and assessment ballot are mailed to each affected property owner within the District a minimum of 45 days prior to the public hearing date as shown in the Notice. The City may also hold a community meeting with the property owners to discuss the issues facing the District and to answer property owner questions directly. After the Notice and assessment ballot are mailed, property owners are given until the close of the public hearing, stated in the Notice, to return their signed and marked assessment ballot. During the public hearing, property owners are given the opportunity to address the City Council and ask questions or voice their concerns. At the public hearing, the returned assessment ballots received prior to the close of the public hearing are tabulated, weighted by the proposed assessment amount on each property and the results are announced by the City Council. Article XIII D provides that if, as a result of the assessment ballot proceeding, a majority protest is found to exist, the City Council shall not have the authority to levy and collect the assessments as proposed. A majority protest exists if the assessments represented by ballots submitted in opposition exceed those submitted in favor of the assessment. All returned ballots are tabulated and weighted according to the financial obligation of each particular parcel. Street Lighting Maintenance District No. 3—City of Rancho Cucamonga 4 Fiscal Year 2015/16 If there is no majority protest as described above, the City Council may approve the proposed assessments. If the is a majority protest, as described above, the City will not levy and collect any assessments. Street Lighting Maintenance District No. 3—City of Rancho Cucamonga 5 Fiscal Year 2015/16 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 south of the 1-210 Freeway, west of Etiwanda Avenue, southwest of the 1-15 Freeway and east of Haven Avenue, also known as the Victoria 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. 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 6 Fiscal Year 2015/16 •,y�•�•:r.r••'..`.,m:y�.•`•...,w'•.••�•+•�•2�„•7i¢fp!��t••�Vjrj••e�Qw tti_•L•j,••i0�•,�•tiS••w••••��W�i••••i•••iI�`J•�j••••=L�f,�••ejij•j•••,fi�•ri,w•••••��••••Z'+I�•i fi,{i f.,M••i� �••`••���,�•,>j{Ww rj•`•j•••i•t,tii••jj•�'ir•'••j+L•••S�ti,e•I,L••t�••*•,,••,6•+d:21!i1 �••0~j••••: _FN•MA•W•••i•••• •••,�:• • ,2 F W IGHLDD0RP • • % %.. % -•�, S •'j • , : KS VICTORIA RK LN MCTHO7GRkIA ST iti30 • •• .r V •• f. All ir1Ys.,i4i). ; .f •• %•Aw• DAV n i BASELINE RD t••L�i•••j..' �j♦:'1 ./ •••j• ~•i j• O •} •••• �i ♦+• jt+ a E w � �N i •S••N•�+• Q U •,•, /••� ••q. •,•• y0 U ••• or F•M', • m rf ••j ` i i wL"`• w•,bb• w � � Iw-. L"'•• CN URCHI ST'•• • • i• iq• 0, m +••ti M+, ` ,yF Y .�•� •••• \ MILLER AV U Street Lighting Maintenance District No. 3 �;:• m Street Lights and Traffic Signals Improvements ••,`t Z Y Q U VICTORIA GARDENS LN ' FOOTHILL BL m w Fc � P w =� 150PK 1 v O i ...•.erre....•.cn•..a.c.e.. i ..o_.r....ei....m. ...... rk ca ream v�....w .... r � 41 H..®mM.•mpu Ve..Re.s lmNq..r Traffic Light Signal � } .o.es lima..i.rr�a.rene..m.a ARROW RT , rr SCE Streetlights ; N .e eee��m.mm.N..dr.ib me ' VI LL City Boundary 0.55 0.275 0 li ! °raw �e..�,���-o.•.r._m.. 0.55 Miles 1:3SLD 3 Boundary i cu.ee,. JERS, ...... 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 assessment district levy calculation process, the costs and expenses are reviewed and the annual costs are projected for the following fiscal year. District Budget Estimated 2015/16 Budget Personnel Services Regular Payroll $ 13,490.00 Part-time Salaries 0.00 Fringe Benefits 6,340.00 Subtotal Personnel $ 19,830.00 Operations and Maintenance Training $ 180.00 Membership Dues 30.00 Operations and Maintenance 9,940.00 Equip Operations & Maintenance 0.00 Contract Services 0.00 Utilities Telephone Utilities 0.00 Electric Utilities 258,000.00 Assessment Administration 35,640.00 General Overhead 4,920.00 Interfund Allocation 0.00 Subtotal Operations and Maintenance $ 308,710.00 Capital Expenditures Capital Projects $ 0.00 Subtotal Capital Expenditures $ 0.00 Total Expenditure Budget $ 328,540.00 Total Estimated Assessment $ 352,370.00 Plus Anticipated Delinquencies 14,680.00 Total Estimated Revenue $ 367,050.00 Less Operating Reserve Fund Contribution (38.510.00) Net Revenues/Expenditures $ 328,540.00 Total Estimated Assessment $ 352,371.75 Total District EBU Count 7,473.42 Actual Assessment per EBU - Fiscal Year 2015/16 $ 47.15 Maximum Allowable Assessment per EBU - Fiscal Year 2015/16 $ 47.15 Street Lighting Maintenance District No. 3-City of Rancho Cucamonga S Fiscal Year 2015/16 The maximum allowable assessment per EBU listed in the District budget above, is the amount which was approved in 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: Estimated Fiscal Year Ending June 30, 2015 Reserve Fund Balance $ 1,221,467.00 Use of Operating Reserve Fund — Fiscal Year 2015/16 (0.00) Operating Reserve Contribution — Fiscal Year 2015/16 38.510.00 Estimated Fiscal Year Ending June 30, 2016 Reserve Fund Balance $ 1,259,977.00 Definitions of Budget Items The following definitions describe the costs and expenses included in the District Budget: Personnel Services Regular Salaries: This item includes the costs attributed to the salaries of all full-time employees dedicated to maintenance of the District improvements. Part Time Salaries: This item includes the costs attributed to the salaries of all part time employees dedicated to maintenance of the District improvements. Fringe Benefits: This item includes the benefits available to City employees: health care, vacation, sick time, and retirement fund. Operations and Maintenance Training: International Municipal Signal Association (ISMA) Certification. The cost is split evenly between all of the City's Street Light Maintenance Districts. Membership Dues: ISMA Certification. The cost is split evenly between all of the City's Street Light and Maintenance Districts. Utilities - Telephones: This item includes the costs for master controllers for dial-in data lines for uploading, downloading and observing system operations for traffic signals. Utilities - Electric: This item includes the costs to furnish electricity required for the operation and maintenance of the street lights and traffic signals. Street Lighting Maintenance District No. 3—City of Rancho Cucamonga 9 Fiscal Year 2015/16 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 departments and staff 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 assessment district within the City's administrative structure. Capital Expenditures: Capital Projects: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include new monuments, irrigation systems, and other large improvements. Operating Reserve Collection: Operating Reserve Collection: This item includes the amount to be collected to maintain reserves to enable the City to pay for the maintenance and servicing of the improvements prior to December 10 of the fiscal year, or whenever the City expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. The Reserve Fund contribution will continue until such a time the Reserve Fund balance is approximately one half of the annual costs. The fund may be allowed to accumulate in anticipation of any unforeseen expenses not included in the yearly maintenance costs. This may include, but is not limited to, tree replacements, repair of damaged equipment due to vandalism, storms and other similar events. Street Lighting Maintenance District No. 3—City of Rancho Cucamonga 10 Fiscal Year 2015/16 METHOD OF ASSESSMENT General 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]." 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' (Sec. 22547). 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. 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: Street Lighting Maintenance District No. 3—City of Rancho Cucamonga 11 Fiscal Year 2015/16 • improving the livability, 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, shade 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 in 1982, 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 the 1996/97 Fiscal Year. 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 Dwelling Unit (EBU). Every other land-use is converted to EBUs based on an assessment formula that equates to the property's specific Street Lighting Maintenance District No. 3—City of Rancho Cucamonga 12 Fiscal Year 2015/16 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 2015/16 maximum allowable assessment rates for the District: Property Type Maximum Allowable Actual Assessment Total Total (County Use Code) Assessment Rate Rate per EBU Units/Acres EBUs per EBU Single Family Residential $47.15 $47.15 6,397.00 6,397.00 Multi-Family Residential 47.15 47.15 589.00 589.00 Non Residential 47.15 47.15 243.71 487.42 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. Street Lighting Maintenance District No. 3—City of Rancho Cucamonga 13 Fiscal Year 2015/16 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. 3—City of Rancho Cucamonga 14 Fiscal Year 2015/16 X8;3 tg���t st it 34gtFd�3jt < (D Ila t}i' #'s D CU o N a a I t4(I00 / 91 H q1t to .'0 CU j? (1i33Sc3 �3 Grove Av gJ1,00 y7�Iz r ' 1 Carnelian St Vineyard Avj a 0) Hellman Avi i Hellman Av Archibald Av 1 Archibald Av Hermosa Avi Hermosa Av Haven Adi Haven Av Milliken Av I .�._.._.._.._J Milliken Av � r ! Rochester Av .y = j Rochester Av I............. —.�.._. ' Day Creek B1 I I i Etiwanda Av Etiwanda Avi N East Av�_._.._.._.._ D _o ! o O \CD A W CD O Cherry Av � o < �. w r 3 0 m (� N Street Lighting Maintenance District No. 3—City of Rancho Cucamonga 15 Fiscal Year 2015/16 ASSESSMENT ROLL Assessment Roll The assessment roll is a listing of the assessment for Fiscal Year 2015/16 apportioned to each lot or parcel, as shown on the last equalized roll of the Assessor of the County of San Bernardino. The following tables summarize the Fiscal Year 2015/16 maximum and actual assessments for the District: Maximum Allowable Maximum Property Type Assessment Rate Total Total Allowable (County Use Codeper EBU Units/Acres EBUs Assessment Single Family Residential $47.15 6,397.00 6,397.00 $301,618.55 Multi-Family Residential 47.15 589.00 589.00 27,771.35 Non Residential 47.15 243.71 487.42 22,981.85 TOTALS 1 1 7,229.71 1 7,473.42 1 $352,371.75 *"Actual Assessment Rate per EBU" is the same as "Maximum Allowable Assessment Rate Per EBU". A copy of the full assessment roll is available for review in the City Clerk's office. Annexations The following Annexations are effective for the 2015/16 Fiscal Year. APN Annexation Project Total Total Property Type Date Name Units/Acres EBUS 1089-581-01 05/21/14 TR 18212 67.00 67.00 Condominiums Street Lighting Maintenance District No. 3-City of Rancho Cucamonga 16 Fiscal Year 2015/16 Annual Engineer's Report Fiscal Year 2015/2016 City of Rancho Cucamonga Street Lighting Maintenance District No. 4 (Terra Vista Planned Community) CITY OF RANCHO CUCAMONGA STREET LIGHTING MAINTENANCE DISTRICT NO. 4 (TERRA VISTA PLANNED COMMUNITY) 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909.477.2740 Fax: 909.477.2741 CITY COUNCIL L. Dennis Michael, Mayor Sam Spagnolo, Mayor Pro Tem William Alexander, Council Member Lynne B. Kennedy, Council Member Diane Williams, Council Member CITY STAFF John R. Gillison, City Manager Linda D. Daniels, Assistant City Manager Lori E. Sassoon, Deputy City Manager/Administrative Services William Wittkopf, Public Works Director Ingrid Y. Bruce, Deputy Director/Department of Innovation & Technology Christopher Bopko, Management Analyst III TABLE OF CONTENTS Engineer's Letter 1 Introduction 3 Reason for Assessment Process for Annual Assessment Plans and Specifications 5 Description of the Boundaries of the District Description of Improvements and Services Map of Improvements Estimate of Costs 7 District Budget Definitions of Budget Items Method of Assessment 10 General General Benefit Special Benefit Method of Assessment Spread Assessment Diagram 13 Assessment Roll 15 Assessment Roll Annexations ENGINEER'S LETTER WHEREAS, on July 15, 2015, the City Council of Rancho Cucamonga (the "City"), under the Landscape and Lighting Act of 1972 (the "1972 Act") adopted its Resolution No. 15-116, 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 NBS to prepare and file an Annual Engineer's Report for Fiscal Year 2015/16 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 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 the 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. SUMMARY OF ASSESSMENT Fiscal Year 2015/16 Total Estimated Assessment $ 164,000.00 Plus Anticipated Delinquencies 18,540.00 Total Estimated Revenue $ 182,540.00 Less Operating Reserve Fund Contribution (37.930.00) Total Expenditure Budget $ 144,610.00 Total District EBU Count 5,663.02 Actual Assessment per EBU $ 28.96 Maximum Allowable Assessment per EBU $ 28.96 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. Street Lighting Maintenance District No.4-City of Rancho Cucamonga 1 Fiscal Year 2015/16 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 entirely of the maintenance costs of the improvements; b. No assessment has been imposed on any Specially Benefitted 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, the Annual Engineer's Report, Assessment Diagram 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. QQQOfESS/0,1,, `�2`6�p0DREWgl�Fye � No.C053672 � Exp,6, 1 oQ�@ Mark A. Steuer, Director of Engineering Services/City Engineer Street Lighting Maintenance District No.4—City of Rancho Cucamonga 2 Fiscal Year 2015/16 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 repair, removal or replacement of all or any part of any improvement. Servicing means the furnishing of services and materials for the ordinary and usual maintenance, operating and servicing of any improvement. Servicing shall also include vehicle, equipment, capital improvements 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 assessment 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 assessment 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 assessment district by its distinctive designation and indicate the general location of the district. • Refers to the report of the engineer, on file with the clerk, for a full and detailed description of the improvements, the boundaries of the assessment 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 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. During the course or upon conclusion of the hearing, the City Council may order changes in any of the Street Lighting Maintenance District No. 4—City of Rancho Cucamonga 3 Fiscal Year 2015/16 matters provided in the report, including changes in the improvements, any zones within the assessment 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. The basic steps of the assessment ballot procedure are outlined below. The City must prepare a Notice of Public Hearing ("Notice"), which describes, along with other mandated information, the reason for the proposed assessments, and to provide a date and time of a public hearing to be held on the matter. The City must also prepare an assessment ballot, which clearly gives the property owner the ability to sign and mark their assessment ballot either in favor of, or in opposition to the proposed assessment. The Notice and assessment ballot are mailed to each affected property owner within the District a minimum of 45 days prior to the public hearing date as shown in the Notice. The City may also hold a community meeting with the property owners to discuss the issues facing the District and to answer property owner questions directly. After the Notice and assessment ballot are mailed, property owners are given until the close of the public hearing, stated in the Notice, to return their signed and marked assessment ballot. During the public hearing, property owners are given the opportunity to address the City Council and ask questions or voice their concerns. At the public hearing, the returned assessment ballots received prior to the close of the public hearing are tabulated, weighted by the proposed assessment amount on each property and the results are announced by the City Council. Article XIII D provides that if, as a result of the assessment ballot proceeding, a majority protest is found to exist, the City Council shall not have the authority to levy and collect the assessments as proposed. A majority protest exists if the assessments represented by ballots submitted in opposition exceed those submitted in favor of the assessment. All returned ballots are tabulated and weighted according to the financial obligation of each particular parcel. If there is no majority protest as described above, the City Council may approve the proposed assessments. If the is a majority protest, as described above, the City will not levy and collect any assessments. Street Lighting Maintenance District No. 4—City of Rancho Cucamonga 4 Fiscal Year 2015/16 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 Boulevard, west of Rochester Avenue, east of Haven Avenue, south of Base Line Road and includes the northeast corner of Base Line Road and Haven Avenue. 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. 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 2015/16 i Q Traffic Signal Lights Street Lighting Maintenance District No. 4 • SCE Streetlights QD • Street Lights and Traffic Signals Improvements - - City Boundary OSLD 4 Boundary CENTRAL PARK Q Z w • BASE LINE RD • Z J • C • , O • E • M COYOTE CANYON U PARK • O , L • U , • Q C • • � rp • • • MOUNTAIN , F • • VIEW PARK O , w • _ « •• • • • O • • I Q I V O F • Z < WWCEe N� Per+. • • WE ST GREENWAY Z � • PARK MILLIKEN cy • PARK c v re..y.ex.mapo•q•o�dxmmoeCia®.�� � � ..e.u.Mme.Py*u.c,n nTm.bcmmme. � � m.nn+R.uMcmmu•..Y..m —K, C m0 .,m.Y np•�.em.p..Y. ummm.Y C O ..•,m.. n.q.mwNrvY u.m..e(q RALPH M.LEWIS Z, rV �.evmmvm.w m yme..m ib ewem�.xr L mmis.mrmrn m�••m me..•nmeu PARK m C. R . CWYllfv.mm P...Mbnm J h. iH lRa6oCmmmP vWnYYW^tlw Vn.um � Y f.Is..q ee il.p n.aawee..rv...�vMg y — mib.mY.m..we.mrYa..es.ea.ym Qj U (m..(u.yNnW pupas Lb Cq JR.v000uea uy. .W mm..rt.Pm..ra.gemx.R.yvelY.e(W �. � m(v(pgv V1 LL my�J.Ymm po.Ye mLn(g1 q.Nmoenu'Nm mngb b q prmv.L m.pmtiv Wmn.Eov FOOTHILL BL 0.25 0.125 0 0.25 Mile 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 assessment district levy calculation process, the costs and expenses are reviewed and the annual costs are projected for the following fiscal year. District Budget Estimated 2015/16 Budget Personnel Services Regular Payroll $ 13,490.00 Part-time Salaries 0.00 Fringe Benefits 6,340.00 Subtotal Personnel $ 19,830.00 Operations and Maintenance Training $ 190.00 Membership Dues 30.00 Operations and Maintenance 4,940.00 Equip Operations & Maintenance 500.00 Contract Services 0.00 Utilities Telephone Utilities 0.00 Electric Utilities 92,520.00 Assessment Administration 22,970.00 General Overhead 3,630.00 Interfund Allocation 0.00 Subtotal Operations and Maintenance $ 124,780.00 Capital Expenditures Capital Projects $ 0.00 Subtotal Capital Expenditures $ 0.00 Total District Expenditure Budget $ 144,610.00 Total Estimated Assessment $ 164,000.00 Plus Anticipated Delinquencies 18.540.00 Total Estimated Revenue $ 182,540.00 Less Operating Reserve Fund Contribution (37,930.00) Net Revenues/Expenditures $ 144,610.00 Total Estimated Assessment $ 164,001.05 Total District EBU Count 5,663.02 Actual Assessment per EBU - Fiscal Year 2015/16 $ 28.96 Maximum Allowable Assessment per EBU - Fiscal Year 2015/16 1 $ 28.96 Street Lighting Maintenance District No. 4-City of Rancho Cucamonga 7 Fiscal Year 2015/16 The maximum allowable assessment per EBU listed in the District budget above, is the amount which was approved in 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: Estimated Fiscal Year Ending June 30, 2015 Reserve Fund Balance $ 515,845.00 Use of Operating Reserve Fund — Fiscal Year 2015/16 (0.00) Operating Reserve Contribution — Fiscal Year 2015/16 37.930.00 Estimated Fiscal Year Ending June 30, 2016 Reserve Fund Balance $ 553,775.00 Definitions of Budget Items The following definitions describe the costs and expenses included in the District Budget: Personnel Services Regular Salaries: This item includes the costs attributed to the salaries of all full-time employees dedicated to maintenance of the District improvements. Part Time Salaries: This item includes the costs attributed to the salaries of all part time employees dedicated to maintenance of the District improvements. Fringe Benefits: This item includes the benefits available to City employees: health care, vacation, sick time, and retirement fund. Operations and Maintenance Training: International Municipal Signal Association (ISMA) Certification. The cost is split evenly between all of the City's Street Light Maintenance Districts. Membership Dues: ISMA certification. The cost is split evenly between all of the City's Street Light and Maintenance Districts. Utilities - Telephones: This item includes the costs for master controllers for dial-in data lines for uploading, downloading and observing system operations for traffic signals. Utilities - Electric: This item includes the costs to furnish electricity required for the operation and maintenance of the street lights and traffic signals. Street Lighting Maintenance District No. 4—City of Rancho Cucamonga 8 Fiscal Year 2015/16 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 departments and staff 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 assessment district within the City's administrative structure. Capital Expenditures: Capital Projects: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include new monuments, irrigation systems, and other large improvements. Operating Reserve Collection: Operating Reserve Collection: This item includes the amount to be collected to maintain reserves to enable the City to pay for the maintenance and servicing of the improvements prior to December 10 of the fiscal year, or whenever the City expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. The Reserve Fund contribution will continue until such a time the Reserve Fund balance is approximately one half of the annual costs. The fund may be allowed to accumulate in anticipation of any unforeseen expenses not included in the yearly maintenance costs. This may include, but is not limited to, tree replacements, repair of damaged equipment due to vandalism, storms and other similar events. Street Lighting Maintenance District No. 4—City of Rancho Cucamonga 9 Fiscal Year 2015/16 METHOD OF ASSESSMENT General 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]." 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' (Sec. 22547). 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. 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: Street Lighting Maintenance District No. 4-City of Rancho Cucamonga 10 Fiscal Year 2015/16 • improving the livability, 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, shade 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 in 1984, 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 the 1996/97 Fiscal Year. 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 Dwelling Unit (EBU). Every other land-use is converted to EBUs based on an assessment formula that equates to the property's specific Street Lighting Maintenance District No.4-City of Rancho Cucamonga 11 Fiscal Year 2015/16 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 2015/16 maximum allowable assessment rates for the District: Property Type Maximum Allowable Actual Assessment Total Total (County Use Code) Assessment Rate Rate per EBU Units/Acres EBUs per EBU Single Family Residential $28.96 $28.96 2,652.00 2,652.00 Multi-Family Residential 28.96 28.96 5,036.00 2,518.00 Non Residential 28.96 28.96 246.51 493.02 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. Street Lighting Maintenance District No. 4—City of Rancho Cucamonga 12 Fiscal Year 2015/16 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. 4—City of Rancho Cucamonga 13 Fiscal Year 2015/16 a < a � Street Light Maintenance District 4 T 'FuLO 01 ..................... a i i Hillside Rd ! Q ! U m /Line Wilson Av KBanyan St0 E 19th S -11u s Base Line Rd !ti o Z u I m i r U a Foothill BI Foothill BI r Z 1 d i Arrow Rt Arrow Rt j i v i 8th St i j Legend > a' r'—> � o ¢ City Limits tj w K SLD4 m 4th St , No •i:<i.`o�'nw:oiew..mow:w «:.u'sw•%.we.w•'�e. E L E ..,...«,.....t...._ .. <..,...,,, -,.. Q = o w Miles sin.., 2' m.«-�_•-•-4•�-.d-� 0.5025 0 0.5 1 1 5 ASSESSMENT ROLL Assessment Roll The assessment roll is a listing of the assessment for Fiscal Year 2015/16 apportioned to each lot or parcel, as shown on the last equalized roll of the Assessor of the County of San Bernardino. The following tables summarize the Fiscal Year 2015/16 maximum and actual assessments for the District: Maximum Allowable Maximum Property Type Assessment Rate Total Total Allowable (County Use Codeper EBU Units/Acres EBUs Assessment Single Family Residential $28.96 2,652.00 2,652.00 $76,801.92 Multi-Family Residential 28.96 5,036.00 2,518.00 72,921.28 Non Residential 28.96 246.51 493.02 14,277.85 TOTALS 1 1 7,934.51 5,663.02 $164,001.05 *"Actual Assessment Rate per EBU" is the same as "Maximum Allowable Assessment Rate Per EBU". A copy of the full assessment roll is available for review in the City Clerk's office. Annexations There were no Annexations for the 2015/16 Fiscal Year. Street Lighting Maintenance District No.4-City of Rancho Cucamonga 15 Fiscal Year 2015/16 Annual Engineer's Report Fiscal Year 2015/2016 City of Rancho Cucamonga Street Lighting Maintenance District No. 5 (Caryn Planned Community) CITY OF RANCHO CUCAMONGA STREET LIGHTING MAINTENANCE DISTRICT NO. 5 (CARYN PLANNED COMMUNITY) 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909.477.2740 Fax: 909.477.2741 CITY COUNCIL L. Dennis Michael, Mayor Sam Spagnolo, Mayor Pro Tem William Alexander, Council Member Lynne B. Kennedy, Council Member Diane Williams, Council Member CITY STAFF John R. Gillison, City Manager Linda D. Daniels, Assistant City Manager Lori E. Sassoon, Deputy City Manager/Administrative Services William Wittkopf, Public Works Director Ingrid Y. Bruce, Deputy Director/Department of Innovation & Technology Christopher Bopko, Management Analyst III TABLE OF CONTENTS Engineer's Letter 1 Introduction 3 Reason for Assessment Process for Annual Assessment Plans and Specifications 5 Description of the Boundaries of the District Description of Improvements and Services Map of Improvements Estimate of Costs 7 District Budget Definitions of Budget Items Method of Assessment 10 General General Benefit Special Benefit Method of Assessment Spread Assessment Diagram 13 Assessment Roll 15 Assessment Roll Annexations ENGINEER'S LETTER WHEREAS, on July 15, 2015 the City Council of Rancho Cucamonga (the "City"), under the Landscape and Lighting Act of 1972 (the "1972 Act") adopted its Resolution No. 15-116, 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 NBS to prepare and file an Annual Engineer's Report for Fiscal Year 2015/16 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 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 the 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. SUMMARY OF ASSESSMENT Fiscal Year 2015/16 Total Estimated Assessment $ 44,150.00 Less Anticipated Delinquencies 70.00 Total Estimated Revenue $ 44,080.00 Plus Use of Operating Reserve Fund 37.570.00 Total Expenditure Budget $ 81,650.00 Total District EBU Count 1,276.00 Actual Assessment per EBU $ 34.60 Maximum Allowable Assessment per EBU $ 34.60 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. Street Lighting Maintenance District No. 5—City of Rancho Cucamonga 1 Fiscal Year 2015/16 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 entirely of the maintenance costs of the improvements; b. No assessment has been imposed on any Specially Benefitted 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, the Annual Engineer's Report, Assessment Diagram 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. QPpFESS/onq, y�Q�Q�PNORE W,S jF FyG� w No.CO63672 9 s E .6,i6 1 OFC Mark A. Steuer, Director of Engineering Services/City Engineer Street Lighting Maintenance District No. 5—City of Rancho Cucamonga 2 Fiscal Year 201S/16 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 repair, removal or replacement of all or any part of any improvement. Servicing means the furnishing of services and materials for the ordinary and usual maintenance, operating and servicing of any improvement. Servicing shall also include. vehicle, equipment, capital improvements 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 assessment 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 assessment 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 assessment district by its distinctive designation and indicate the general location of the district. • Refers to the report of the engineer, on file with the clerk, for a full and detailed description of the improvements, the boundaries of the assessment 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 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. During the course or upon conclusion of the hearing, the City Council may order changes in any of the Street Lighting Maintenance District No. 5 -City of Rancho Cucamonga 3 Fiscal Year 2015/16 matters provided in the report, including changes in the improvements, any zones within the assessment 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. The basic steps of the assessment ballot procedure are outlined below. The City must prepare a Notice of Public Hearing ("Notice"), which describes, along with other mandated information, the reason for the proposed assessments, and to provide a date and time of a public hearing to be held on the matter. The City must also prepare an assessment ballot, which clearly gives the property owner the ability to sign and mark their assessment ballot either in favor of, or in opposition to the proposed assessment. The Notice and assessment ballot are mailed to each affected property owner within the District a minimum of 45 days prior to the public hearing date as shown in the Notice. The City may also hold a community meeting with the property owners to discuss the issues facing the District and to answer property owner questions directly. After the Notice and assessment ballot are mailed, property owners are given until the close of the public hearing, stated in the Notice, to return their signed and marked assessment ballot. During the public hearing, property owners are given the opportunity to address the City Council and ask questions or voice their concerns. At the public hearing, the returned assessment ballots received prior to the close of the public hearing are tabulated, weighted by the proposed assessment amount on each property and the results are announced by the City Council. Article XIII D provides that if, as a result of the assessment ballot proceeding, a majority protest is found to exist, the City Council shall not have the authority to levy and collect the assessments as proposed. A majority protest exists if the assessments represented by ballots submitted in opposition exceed those submitted in favor of the assessment. All returned ballots are tabulated and weighted according to the financial obligation of each particular parcel. If there is no majority protest as described above, the City Council may approve the proposed assessments. If the is a majority protest, as described above, the City will not levy and collect any assessments. Street Lighting Maintenance District No. 5—City of Rancho Cucamonga 4 Fiscal Year 2015/16 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 1-210 Freeway, south of Banyan Street, west of Rochester Avenue and east of Milliken Avenue, also known as the Caryn Planned Community. The boundaries also include Tract No. 13835 east of Rochester Avenue and Tracts No. 13748, 13857 & 13858 west of Milliken Avenue. 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. 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 2015/16 B"( •''� %�' • . listrict No. 5 IN Improvements 0 ii�r . . , ♦ j �I1r,11` ♦ ' Cr. � � �n �� �► , tall X11 1 �f� rl • 111! 1" �1 � . ► � - aall)11� t� � �ii i� *� � 11 1 11 ill � �r � tl 1 11 . ■� ,� Ilt 1r �.0 r ���t1�►�tttt �1 , t- _ �r� � r ►���� 1 11 1 . 41 }i 111 �, 11 ei N�! 'llll i 111 . ► ! 1 1 �. l u�� . 1t Irn - ,, . ;! IID nn • �� • �� ` ,f►� L - Ilt {'� - - nl 1)- -11 It' - - 11 1) �� ■;�1 Iltl �__ r 1111 �f:/t►�%irmomIIS Inr I�ifilfi�ti All 11111 ��� r1, ,+� �II11111Nt — � � ��► IIUII :l�un en�1�►�t� � � — + t1llU �`, ��� �l= —� :111\ ■: :i O ia� • �.11.� '��D;�1JA/r'i� �O�` Crile -= :j�l-' �. •: : -- ®� 11 , - - MJMUMKO�OKI 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 assessment district levy calculation process, the costs and expenses are reviewed and the annual costs are projected for the following fiscal year. District Budget Estimated 2015/16 Budget Personnel Services Regular Payroll $ 4,250.00 Part-time Salaries 0.00 Fringe Benefits 2.000.00 Subtotal Personnel $ 6,250.00 Operations and Maintenance Training $ 180.00 Membership Dues 30.00 Operations and Maintenance 8,990.00 Equip Operations & Maintenance 0.00 Contract Services 0.00 Utilities Telephone Utilities 0.00 Electric Utilities 58,080.00 Assessment Administration 7,020.00 General Overhead 1,460.00 Interfund Allocation 0.00 Subtotal Operations and Maintenance $ 75,760.00 Capital Expenditures Capital Projects $ 0.00 Subtotal Capital Expenditures $ 0.00 Total District Expenditure Budget $ 82,010.00 Total Estimated Assessment $ 44,150.00 Less Anticipated Delinquencies 70.00 Total Estimated Revenue $ 44,080.00 Plus Use of Operating Reserve Fund 37.570.00 Net Revenues/Expenditures $ 81,650.00 Total Estimated Assessment $ 44,149.60 Total District EBU Count 1,276.00 Actual Assessment per EBU - Fiscal Year 2015/16 $ 34.60 Maximum Allowable Assessment per EBU - Fiscal Year 2015/16 1 $ 34.60 Street Lighting Maintenance District No. S-City of Rancho Cucamonga 7 Fiscal Year 2015/16 The maximum allowable assessment per EBU listed in the District budget above, is the amount which was approved in 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: Estimated Fiscal Year Ending June 30, 2015 Reserve Fund Balance $ (44,774.00) Use of Operating Reserve Fund - Fiscal Year 2015/16 (37,930.00) Operating Reserve Contribution - Fiscal Year 2015/16 0.00 Estimated Fiscal Year Ending June 30, 2016 Reserve Fund Balance $ (82,344.00) Definitions of Budget Items The following definitions describe the costs and expenses included in the District Budget: Personnel Services Regular Salaries: This item includes the costs attributed to the salaries of all full-time employees dedicated to maintenance of the District improvements. Part Time Salaries: This item includes the costs attributed .to the salaries of all part time employees dedicated to maintenance of the District improvements. Fringe Benefits: This item includes the benefits available to City employees: health care, vacation, sick time, and retirement fund. Operations and Maintenance Training: International Municipal Signal Association (ISMA) Certification. The cost is split evenly between all of the City's Street Light Maintenance Districts. Membership Dues: ISMA certification. The cost is split evenly between all of the City's Street Light and Maintenance Districts. Utilities - Telephones: This item includes the costs for master controllers for dial-in data lines for uploading, downloading and observing system operations for traffic signals. Utilities - Electric: This item includes the costs to furnish electricity required for the operation and maintenance of the street lights and traffic signals. Street Lighting Maintenance District No. 5-City of Rancho Cucamonga 8 Fiscal Year 2015/16 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 departments and staff 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 assessment district within the City's administrative structure. Capital Expenditures: Capital Projects: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include new monuments, irrigation systems, and other large improvements. Operating Reserve Collection: Operating Reserve Collection: This item includes the amount to be collected to maintain reserves to enable the City to pay for the maintenance and servicing of the improvements prior to December 10 of the fiscal year, or whenever the City expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. The Reserve Fund contribution will continue until such a time the Reserve Fund balance is approximately one half of the annual costs. The fund may be allowed to accumulate in anticipation of any unforeseen expenses not included in the yearly maintenance costs. This may include, but is not limited to, tree replacements, repair of damaged equipment due to vandalism, storms and other similar events. Street Lighting Maintenance District No. 5—City of Rancho Cucamonga 9 Fiscal Year 2015/16 METHOD OF ASSESSMENT General 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]." 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' (Sec. 22547). 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. 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: Street Lighting Maintenance District No. 5-City of Rancho Cucamonga 10 Fiscal Year 2015/16 • improving the livability, 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, shade 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 in 1986, 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 the 1996/97 Fiscal Year. 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 Street Lighting Maintenance District No. 5—City of Rancho Cucamonga 11 Fiscal Year 2015/16 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 Dwellin Units Property Type (County Use Code) EBU Value Multiplier Sin le 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 2015/16 maximum allowable assessment rates for the District: Property Type Maximum Allowable Actual Assessment Total Total (County Use Code) Assessment Rate Rate per EBU Units/Acres EBUs per EBU Single Family Residential $34.60 $34.60 1,276 1,276 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. Street Lighting Maintenance District No. 5 —City of Rancho Cucamonga 12 Fiscal Year 2015/16 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. 5—City of Rancho Cucamonga 13 Fiscal Year 2015/16 �I�` i28Qi?i Q l;r, �o�j21�jS��i �# a 26 2 g{e g{ta yl*'ai.il„� W N �- a3 �gata l T W Z1 33at� as D °o w _ N a 00 0 $t ta79$ �`1N W 3P Grove Av �_.._..__�._ a d P� at li gt •,��' ' .. y } pppp I i 7v21L ae 44f 14 1 ���� i Carnelian St Vineyard Av j 1 pE 1 s W Hellman Avg i Hellman Av Archibald Av 1 ! Archibald Av I � I i 1 Hermosa Av i ) I Hermosa Av Haven Avj J Haven Av i Milliken Av 1 ._.._.._.._..—J Milliken Av 1 i j ...i Cn Rochester Av j Rochester Av _ _ _ _ � j Day Creek Bi C I i �'• i Etiwanda Av Etiwanda Av i S ' °O East Av t n E3 8 o' N I I �« CD A W i n CDU 1 1 ,_.0 .. .. ^ Cherry Av I tp o r CL U r n N N Street lighting Maintenance District No. 5—City of Rancho Cucamonga 14 Fiscal Year 2015/16 ASSESSMENT ROLL Assessment Roll The assessment roll is a listing of the assessment for Fiscal Year 2015/16 apportioned to each lot or parcel, as shown on the last equalized roll of the Assessor of the County of San Bernardino. The following tables summarize the Fiscal Year 2015/16 maximum and actual assessments for the District: Maximum Allowable Maximum Property Type Assessment Rate Total Total Allowable (County Use Codeper E Units/Acres EBUs Assessment Single Family Residential $34.60 1,276 1,276 1 $44,149.60 *"Actual Assessment Rate per EBU" is the same as "Maximum Allowable Assessment Rate Per EBU". A copy of the full assessment roll is available for review in the City Clerk's office. Annexations There were no annexations effective for the 2015/16 Fiscal Year. Street Lighting Maintenance District No. 5—City of Rancho Cucamonga 15 Fiscal Year 2015/16 Annual Engineer's Report Fiscal Year 2015/2016 City of Rancho Cucamonga Street Lighting Maintenance District No. 6 (Commercial/Industrial) CITY OF RANCHO CUCAMONGA STREET LIGHTING MAINTENANCE DISTRICT NO. 6 (COMM ERCIAL/INDUSTRIAL) 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909.477.2740 Fax: 909.477.2741 CITY COUNCIL L. Dennis Michael, Mayor Sam Spagnolo, Mayor Pro Tem William Alexander, Council Member Lynne B. Kennedy, Council Member Diane Williams, Council Member CITY STAFF John R. Gillison, City Manager Linda D. Daniels, Assistant City Manager Lori E. Sassoon, Deputy City Manager/Administrative Services William Wittkopf, Public Works Director Ingrid Y. Bruce, Deputy Director/Department of Innovation & Technology Christopher Bopko, Management Analyst III TABLE OF CONTENTS Engineer's Letter 1 Introduction 3 Reason for Assessment Process for Annual Assessment Plans and Specifications 5 Description of the Boundaries of the District Description of Improvements and Services Map of Improvements Estimate of Costs 7 District Budget Definitions of Budget Items Method of Assessment 10 General General Benefit Special Benefit Method of Assessment Spread Assessment Diagram 13 Assessment Roll 15 Assessment Roll Annexations ENGINEER'S LETTER WHEREAS, on July 15, 2015, the City Council of Rancho Cucamonga (the "City"), under the Landscape and Lighting Act of 1972 (the 1972 Act") adopted its Resolution No. 15-116, 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 NBS to prepare and file an Annual Engineer's Report for Fiscal Year 2015/16 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 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 the 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. SUMMARY OF ASSESSMENT Fiscal Year 2015/16 Total Estimated Assessment $ 134,460.00 Plus Anticipated Delinquencies 5.790.00 Total Estimated Revenue $ 140,250.00 Less Operating Reserve Contribution (23.060.001 Total Expenditure Budget $ 117,190.00 Total District EBU Count 2,615.97 Actual Assessment per EBU $ 51.40 Maximum Allowable Assessment per EBU $ 51.40 In making the assessments contained herein pursuant to the 1972 Act: 1. 1 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. Street Lighting Maintenance District No. 6-City of Rancho Cucamonga 1 Fiscal Year 2015/16 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 entirely of the maintenance costs of the improvements; b. No assessment has been imposed on any Specially Benefitted 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, the Annual Engineer's Report, Assessment Diagram 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. �QQ?,OFESS/p,Y pNDREws F c� 2� lFG yZ No.C053672 m Exp' ? Mark A. Steuer, Director of Engineering Services/City Engineer Street Lighting Maintenance District No. 6—City of Rancho Cucamonga 2 Fiscal Year 2015/16 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 repair, removal or replacement of all or any part of any improvement. Servicing means the furnishing of services and materials for the ordinary and usual maintenance, operating and servicing of any improvement. Servicing shall also include vehicle, equipment, capital improvements 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 assessment 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 assessment 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 assessment district by its distinctive designation and indicate the general location of the district. • Refers to the report of the engineer, on file with the clerk, for a full and detailed description of the improvements, the boundaries of the assessment 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 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. During the course or upon conclusion of the hearing, the City Council may order changes in any of the Street Lighting Maintenance District No. 6—City of Rancho Cucamonga 3 Fiscal Year 2015/16 matters provided in the report, including changes in the improvements, any zones within the assessment 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. The basic steps of the assessment ballot procedure are outlined below. The City must prepare a Notice of Public Hearing ("Notice"), which describes, along with other mandated information, the reason for the proposed assessments, and to provide a date and time of a public hearing to be held on the matter. The City must also prepare an assessment ballot, which clearly gives the property owner the ability to sign and mark their assessment ballot either in favor of, or in opposition to the proposed assessment. The Notice and assessment ballot are mailed to each affected property owner within the District a minimum of 45 days prior to the public hearing date as shown in the Notice. The City may also hold a community meeting with the property owners to discuss the issues facing the District and to answer property owner questions directly. After the Notice and assessment ballot are mailed, property owners are given until the close of the public hearing, stated in the Notice, to return their signed and marked assessment ballot. During the public hearing, property owners are given the opportunity to address the City Council and ask questions or voice their concerns. At the public hearing, the returned assessment ballots received prior to the close of the public hearing are tabulated, weighted by the proposed assessment amount on each property and the results are announced by the City Council. Article XIII D provides that if, as a result of the assessment ballot proceeding, a majority protest is found to exist, the City Council shall not have the authority to levy and collect the assessments as proposed. A majority protest exists if the assessments represented by ballots submitted in opposition exceed those submitted in favor of the assessment. All returned ballots are tabulated and weighted according to the financial obligation of each particular parcel. If there is no majority protest as described above, the City Council may approve the proposed assessments. If the is a majority protest, as described above, the City will not levy and collect any assessments. Street Lighting Maintenance District No. 6—City of Rancho Cucamonga 4 Fiscal Year 2015/16 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 Boulevard on the north, 4" Street on the South, East Avenue on the east and Grove Avenue 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. 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 2015/16 Street Lighting Maintenance District No. 6 N Street Lights and Traffic Signals Improvements ° Rnwum 'm i 1 3 t •Re HILLSIDERD -m HILLSIBE•RO NHOaide WILSON AV WILSON AV 41114 1 WILSON AV W..,. WilmnAm n Q ' �xi•k �= -n BANYAN ST } BANYAN ST 4' z Y�Q 3 w •gym m c m z a Q, -12d00FRP 7r27010FRP HIGH LANDAUw 1210 FW—H7�N 1210 FW erauln m u IBIh _797H ST o a J flw f fO Ra BASE LIN E RO Ba-eliw Re o CHURCH - rn to ' w = o raSmM'e1B Q' FOOTHILL BL OF�e .-- c„Y,u,el Z irrz-. µye ARROW RT w Rt O s6.¢ • • u TH ST o 'JERSEY BL Ekes 8TH ST m_ c N = Y g TfH ST 77H'ST 6'ljy � Q S7' 6TH ST 6i}I QST ti rz..m.,a-meem•ys..kma..fkk—ei) � � sr - � O ,.n•..rme a,mM¢n e¢,.kc.m.mn � 'H N ....... ILI to M dftfitaTHST p SCE Streetlights >" +eaeaer•mM1wrnkam.m..N.m,e a.. i �: � d' d U �Crysa e.cm__,.mwm, em• mym ---- City Boundary LL aym...,r men•y=m-m..w..m®,d.a+a kelimbl4•eyYJ mm nei.,fms.beL¢rym0 ¢ms Im ymemkr.wm tk Gry,(¢md,Cunmmw °-�n--°•°-°":ma °"° 0 1 2 4 Miles SLD 6 Boundary 6•ee® s sae Wa�•larwm. m.ee..gem mw ym atr.m. 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 assessment district levy calculation process, the costs and expenses are reviewed and the annual costs are projected for the following fiscal year. District Budget Estimated 2015/16 Budget Personnel Services Regular Payroll $ 13,490.00 Part-time Salaries 0.00 Fringe Benefits 6.340.00 Subtotal Personnel $ 19,830.00 Operations and Maintenance Training $ 180.00 Membership Dues 30.00 Operations and Maintenance 6,940.00 Equipment Operations & Maintenance 400.00 Contract Services 0.00 Utilities Telephone Utilities 0.00 Electric Utilities 80,800.00 Assessment Administration 5,600.00 General Overhead 3,300.00 Interfund Allocation 0.00 Subtotal Operations and Maintenance $ 97,360.00 Capital Expenditures Capital Projects $ 0.00 Subtotal Capital Expenditures $ 0.00 Total District Expenditure Budget $ 117,190.00 Total Estimated Assessment $ 134,460.00 Plus Anticipated Delinquencies 5.790.00 Total Estimated Revenue $ 140,250.00 Less Operating Reserve Fund Contribution (23.060.00) Total Expenditure Budget $ 117,190.00 Total Estimated Assessment $ 134,460.85 Total District EBU Count 2,615.97 Actual Assessment per EBU - Fiscal Year 2015/16 $ 51.40 Maximum Allowable Assessment per EBU - Fiscal Year 2015/16 1 $ 51.40 Street Lighting Maintenance District No. 6-City of Rancho Cucamonga 7 Fiscal Year 2015/16 The maximum allowable assessment per EBU listed in the District budget above, is the amount which was approved in 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: Estimated Fiscal Year Ending June 30, 2015 Reserve Fund Balance $ 407,632.00 Operating Reserve Contribution — Fiscal Year 2015/16 0.00 Operating Reserve Collection — Fiscal Year 2015/16 23.060.00 Estimated Fiscal Year Ending June 30, 2016 Reserve Fund Balance $ 430,692.00 Definitions of Budget Items The following definitions describe the costs and expenses included in the District Budget: Personnel Services Regular Salaries: This item includes the costs attributed to the salaries of all full-time employees dedicated to maintenance of the District improvements. Part Time Salaries: This item includes the costs attributed to the salaries of all part time employees dedicated to maintenance of the District improvements. Fringe Benefits: This item includes the benefits available to City employees: health care, vacation, sick time, and retirement fund. Operations and Maintenance Training: International Municipal Signal Association (ISMA) Certification. The cost is split evenly between all of the City's Street Light Maintenance Districts. Membership Dues: ISMA certification. The cost is split evenly between all of the City's Street Light and Maintenance Districts. Utilities - Electric: This item includes the costs to furnish electricity required for the operation and maintenance of the street lights and traffic signals. 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 Street Lighting Maintenance District No. 6—City of Rancho Cucamonga 8 Fiscal Year 2015/16 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 departments and staff 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 assessment district within the City's administrative structure. Capital Expenditures: Capital Projects: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include new monuments, irrigation systems, and other large improvements. Operating Reserve Collection: Operating Reserve Collection: This item includes the amount to be collected to maintain reserves to enable the City to pay for the maintenance and servicing of the improvements prior to December 10 of the fiscal year, or whenever the City expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. The Reserve Fund contribution will continue until such a time the Reserve Fund balance is approximately one half of the annual costs. The fund may be allowed to accumulate in anticipation of any unforeseen expenses not included in the yearly maintenance costs. This may include, but is not limited to, tree replacements, repair of damaged equipment due to vandalism, storms and other similar events. Street Lighting Maintenance District No. 6—City of Rancho Cucamonga 9 Fiscal Year 2015/16 METHOD OF ASSESSMENT General 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]." 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" (Sec. 22547). 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. 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: Street Lighting Maintenance District No. 6—City of Rancho Cucamonga 10 Fiscal Year 2015/16 • 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, shade 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 in 1987, 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 the 1996/97 Fiscal Year. 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 Street Lighting Maintenance District No. 6—City of Rancho Cucamonga 11 Fiscal Year 2015/16 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) EBUValue Multiplier Non Residential 1.00 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 2015/16 maximum allowable assessment rates for the District: Property Type Maximum Allowable Actual Assessment Total Total (County Use Code) Assessment Rate Rate per EBU Units/Acres EBUs per EBU Non Residential $51.40 $51.40 2,615.87 1 2,615.87 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. Street Lighting Maintenance District No. 6—City of Rancho Cucamonga 12 Fiscal Year 2015/16 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. 6—City of Rancho Cucamonga 13 Fiscal Year 2015/16 i�P's�dt§.ifi � t PIi a a7%if yz F d q=3 d777 d'3 n o m a d :§ all 7p , w o cn co = to Grove AV a Carnelian St Vineyard AV T A � Hellman AV U) Hellman AV Archibald AV Archibald AV Hermosa AV Hermosa AV Haven AV Haven AV Milliken AV —._.._.._..—J Milliken AV y I Rochester AV § C j Rochester AV j.............—.._.._- � Day Creek B1 C 1 Etiwanda AV Etiwanda AV i � I East Av D m —� 7 W �. N I N � i W � m I i , Cherry Av = n o ID I �" • n (n 0 a ® 0) r rn � Q1 ut Street Lighting Maintenance District No. 6—City of Rancho Cucamonga 14 Fiscal Year 2015/16 ASSESSMENT ROLL Assessment Roll The assessment roll is a listing of the assessment for Fiscal Year 2015/16 apportioned to each lot or parcel, as shown on the last equalized roll of the Assessor of the County of San Bernardino. The following tables summarize the Fiscal Year 2015/16 maximum and actual assessments for the District: Maximum Allowable Maximum Property Type Assessment Rate Total Total Allowable (County Use Codeper EBU Units/Acres EBUs Assessment Non Residential $51.40 2,615.87 2,615.87 $134,460.85 TOTALS 2,615.87 2,615.87 $134,460.85 *"Actual Assessment Rate per EBU" is the same as "Maximum Allowable Assessment Rate Per EBU". A copy of the full assessment roll is available for review in the City Clerk's office. Annexations The following Annexations are effective for the 2015/16 Fiscal Year. APN Annexation Project Name Total Total Property Date Units/Acres EBUS Type 0229-262-01, 05/21/14 DRC2008- 5.53 5.53 Non- 31 00185 Residential 0229-131-04, 05/21/14 PM 19448 74.75 74.75 Non- 17 & 25 Residential 0229-171-01 11/19/14 DRC2012- 4.77 4.77 Non- 00878 Residential Street Lighting Maintenance District No. 6-City of Rancho Cucamonga 15 Fiscal Year 2015/16 Annual Engineer's Report Fiscal Year 2015/2016 City of Rancho Cucamonga Street Lighting Maintenance District No. 7 (North Etiwanda) CITY OF RANCHO CUCAMONGA STREET LIGHTING MAINTENANCE DISTRICT NO. 7 (NORTH ETIWANDA) 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909.477.2740 Fax: 909.477.2741 CITY COUNCIL L. Dennis Michael, Mayor Sam Spagnolo, Mayor Pro Tem William Alexander, Council Member Lynne B. Kennedy, Council Member Diane Williams, Council Member CITY STAFF John R. Gillison, City Manager Linda D. Daniels, Assistant City Manager Lori E. Sassoon, Deputy City Manager/Administrative Services William Wittkopf, Public Works Director Ingrid Y. Bruce, Deputy Director/Department of Innovation & Technology Christopher Bopko, Management Analyst III TABLE OF CONTENTS Engineer's Letter 1 Introduction 3 Reason for Assessment Process for Annual Assessment Plans and Specifications 5 Description of the Boundaries of the District Description of Improvements and Services Map of Improvements Estimate of Costs 7 District Budget Definitions of Budget Items Method of Assessment 10 General General Benefit Special Benefit Method of Assessment Spread Assessment Diagram 13 Assessment Roll 15 Assessment Roll Annexations ENGINEER'S LETTER WHEREAS, on July 15, 2015, the City Council of Rancho Cucamonga (the "City"), under the Landscape and Lighting Act of 1972 (the "1972 Act") adopted its Resolution No. 15-116, 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 NBS to prepare and file an Annual Engineer's Report for Fiscal Year 2015/16 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 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 the 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. SUMMARY OF ASSESSMENT Fiscal Year 2015/16 Total Estimated Assessment $ 126,010.00 Less Anticipated Delinquencies 330.00 Total Estimated Revenue $ 125,680.00 Transfer In-Fund 105.100.00 Total Expenditure Budget $ 230,780.00 Total District EDU Count 3,782.00 Actual Assessment per EDU $ 33.32 Maximum Allowable Assessment per EDU $ 33.32 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. Street Lighting Maintenance District No. 7-City of Rancho Cucamonga 1 Fiscal Year 2015/16 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 entirely of the maintenance costs of the improvements; b. No assessment has been imposed on any Specially Benefitted 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, the Annual Engineer's Report, Assessment Diagram 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. Q(iOFESS, DHEWgr�Fye y G 2 No.C053672 Exp.6-30- J 7 CIVIL Qa�P F Mark A. Steuer, Director of Engineering Services/City Engineer Street Lighting Maintenance District No.7—City of Rancho Cucamonga 2 Fiscal Year 2015/16 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 repair, removal or replacement of all or any part of any improvement. Servicing means the furnishing of services and materials for the ordinary and usual maintenance, operating and servicing of any improvement. Servicing shall also include vehicle, equipment, capital improvements 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 assessment 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 assessment 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 assessment district by its distinctive designation and indicate the general location of the district. • Refers to the report of the engineer, on file with the clerk, for a full and detailed description of the improvements, the boundaries of the assessment 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 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. During the course or upon conclusion of the hearing, the City Council may order changes in any of the Street Lighting Maintenance District No. 7—City of Rancho Cucamonga 3 Fiscal Year 2015/16 matters provided in the report, including changes in the improvements, any zones within the assessment 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. The basic steps of the assessment ballot procedure are outlined below. The City must prepare a Notice of Public Hearing ("Notice"), which describes, along with other mandated information, the reason for the proposed assessments, and to provide a date and time of a public hearing to be held on the matter. The City must also prepare an assessment ballot, which clearly gives the property owner the ability to sign and mark their assessment ballot either in favor of, or in opposition to the proposed assessment. The Notice and assessment ballot are mailed to each affected property owner within the District a minimum of 45 days prior to the public hearing date as shown in the Notice. The City may also hold a community meeting with the property owners to discuss the issues facing the District and to answer property owner questions directly. After the Notice and assessment ballot are mailed, property owners are given until the close of the public hearing, stated in the Notice, to return their signed and marked assessment ballot. During the public hearing, property owners are given the opportunity to address the City Council and ask questions or voice their concerns. At the public hearing, the returned assessment ballots received prior to the close of the public hearing are tabulated, weighted by the proposed assessment amount on each property and the results are announced by the City Council. Article XIII D provides that if, as a result of the assessment ballot proceeding, a majority protest is found to exist, the City Council shall not have the authority to levy and collect the assessments as proposed. A majority protest exists if the assessments represented by ballots submitted in opposition exceed those submitted in favor of the assessment. All returned ballots are tabulated and weighted according to the financial obligation of each particular parcel. If there is no majority protest as described above, the City Council may approve the proposed assessments. If the is a majority protest, as described above, the City will not levy and collect any assessments. Street Lighting Maintenance District No. 7—City of Rancho Cucamonga 4 Fiscal Year 2015/16 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 Avenue 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. 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 2015/16 Street Lighting Maintenance District No. 7 N Street Lights and Traffic Signals Improvements .� ��� ,� -; alts❑Jllu.'i}ry.. � ,. C m a a WILSON AV � J'�u WILSON AV BEECH AV h � ttft`' n J<'M11t+� *Q F .,• � is AN YPN ST YAN.xxMH 11HN+�M ♦ la P l llllt m21p 0�R -210.FW l �' Ili� '1111�11 ---I Il6 SOU7N RAMP 1210�FW I'PSNORdH RAMP � C O '= 4U WIIA� imniv n� -V'V nu ��¢ n.�uiiui 11 INI • SCE Streetlights s cHu'No v 11IIt 0 Traffic Signal Lights v :. : � m�m 1TflE _S iiuiiNlNTNttII f SLID 7Boundary v LL 0.5 1 Miles ------ M � City Boundary =9 a. ,,,wH-r 31„ 111114 rFP I 1 11111 Y 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 assessment district levy calculation process, the costs and expenses are reviewed and the annual costs are projected for the following fiscal year. District Budget Estimated 2015/16 Budget Personnel Services Regular Payroll $ 13,490.00 Part-time Salaries 0.00 Fringe Benefits 6,340.00 Subtotal Personnel $ 19,830.00 Operations and Maintenance Training $ 180.00 Membership Dues 30.00 Operations and Maintenance 4,940.00 Equipment Operations & Maintenance 0.00 Contract Services 0.00 Utilities Telephone Utilities 0.00 Electric Utilities 181,800.00 Assessment Administration 20,810.00 General Overhead 3,760.00 Interfund Allocation 0.00 Subtotal Operations and Maintenance $ 211,520.00 Capital Expenditures Capital Projects $ 0.00 Subtotal Capital Expenditures $ 0.00 Total District Expenditure Budget $ 231,350.00 Total Estimated Assessment $ 126,010.00 Less Anticipated Delinquencies 330.00 Total Estimated Revenue $ 125,680.00 Transfer In-Fund 105.100.00 Net Revenues/Expenditures $ 230,780.00 Total Estimated Assessment $ 126,016.24 Total District EDU Count 3,782.00 Actual Assessment per EDU — Fiscal Year 2015/16 $ 33.32 Maximum Allowable Assessment per EDU — Fiscal Year 2015/16 $ 33.32 Street Lighting Maintenance District No. 7—City of Rancho Cucamonga 7 Fiscal Year 2015/16 The maximum allowable assessment per EDU listed in the District budget above, is the amount which was approved in 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 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: Estimated Fiscal Year Ending June 30, 2015 Reserve Fund Balance $ (35,854).00) Use of Operating Reserve Fund — Fiscal Year 2015/16 0.00 Operating Reserve Contribution — Fiscal Year 2015/16 0.00 Estimated Fiscal Year Ending June 30, 2016 Reserve Fund Balance $ (35,854.00) Definitions of Budget Items The following definitions describe the costs and expenses included in the District Budget: Personnel Services Regular Salaries: This item includes the costs attributed to the salaries of all full-time employees dedicated to maintenance of the District improvements. Part Time Salaries: This item includes the costs attributed to the salaries of all part time employees dedicated to maintenance of the District improvements. Fringe Benefits: This item includes the benefits available to City employees: health care, vacation, sick time, and retirement fund. Operations and Maintenance Training: International Municipal Signal Association (ISMA) Certification. The cost is split evenly between all of the City's Street Light Maintenance Districts. Membership Dues: ISMA certification. The cost is split evenly between all of the City's Street Light and Maintenance Districts. Utilities - Electric: This item includes the costs to furnish electricity required for the operation and maintenance of the street lights and traffic signals. 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 Street Lighting Maintenance District No. 7—City of Rancho Cucamonga 8 Fiscal Year 2015/16 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 departments and staff 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 assessment district within the City's administrative structure. Capital Expenditures: Capital Projects: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include new monuments, irrigation systems, and other large improvements. Operating Reserve Collection: Operating Reserve Collection: This item includes the amount to be collected to maintain reserves to enable the City to pay for the maintenance and servicing of the improvements prior to December 10 of the fiscal year, or whenever the City expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. The Reserve Fund contribution will continue until such a time the Reserve Fund balance is approximately one half of the annual costs. The fund may be allowed to accumulate in anticipation of any unforeseen expenses not included in the yearly maintenance costs. This may include, but is not limited to, tree replacements, repair of damaged equipment due to vandalism, storms and other similar events. Street Lighting Maintenance District No. 7-City of Rancho Cucamonga 9 Fiscal Year 2015/16 METHOD OF ASSESSMENT General 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 50009 [of the Streets and Highways Code, State of California]." 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' (Sec. 22547). 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. 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: Street Lighting Maintenance District No. 7-City of Rancho Cucamonga 10 Fiscal Year 2015/16 • 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, shade 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 in 1990, 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 the 1996/97 Fiscal Year. 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 Street Lighting Maintenance District No. 7—City of Rancho Cucamonga 11 Fiscal Year 2015/16 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) EDU 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. The following table summarizes the Fiscal Year 2015/16 maximum allowable assessment rates for the District: Property Type Maximum Allowable Actual Assessment Total Total (County Use Code) Assessment Rate Rate per EDU Units/Acres EDUs per EDU Single Family Residential $33.32 $33.32 3,782.00 3,782.00 Multi-family Residential 33.32 33.32 0.00 0.00 Non Residential 33.32 33.32 0.00 0.00 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. Street Lighting Maintenance District No. 7—City of Rancho Cucamonga 12 Fiscal Year 201S/16 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. 7—City of Rancho Cucamonga 13 Fiscal Year 2015/16 1} arftins ��� • a - i�if�;li'gssgggf�i d m Oo A f f a 3 D o mto CD !n a 3;�3}!}<ty }• Grove Av Carnelian St i Vineyard Av m 1 A � Hellman Av i Hellman Av Archibald Av 1 Archibald Av j I Hermosa Av i �� j Hermosa Av i Haven Av! Haven Av i 1 1 i i i Milliken Av Milliken Av I 1 i Rochester Av j Rochester Av CD } ti. I r Etiwanda Av __ ? East Av�_._.._.._.._...�_� D 0 0 W f w A m r 5 N D U o j ti a Cherry Av fir. CO o v r n N V Street Lighting Maintenance District No. 7—City of Rancho Cucamonga 14 Fiscal Year 2015/16 ASSESSMENT ROLL Assessment Roll The assessment roll is a listing of the assessment for Fiscal Year 2015/16 apportioned to each lot or parcel, as shown on the last equalized roll of the Assessor of the County of San Bernardino. The following tables summarize the Fiscal Year 2015/16 maximum and actual assessments for the District: Maximum Allowable Maximum Property Type Assessment Rate Total Total Allowable (County Use Codeper EDU Units/Acres EDUs Assessment Single Family Residential $33.32 3,782.00 3,782.00 $126,016.24 Multi-family Residential 33.32 0.00 0.00 0.00 Non Residential 33.32 0.00 0.00 0.00 TOTALS 1 3,782.00 1 3,782.00 1 $126,016.24 "Actual Assessment Rate per EBU" is the same as "Maximum Allowable Assessment Rate Per EBU". A copy of the full assessment roll is available for review in the City Clerk's office. Annexations The following Annexations are effective for the 2015/16 Fiscal Year. APN Annexatio Project Total Total Property Type n Date Name Units/Acres EBUS 0226-081-06 02/05/14 TR18741 53.00 53.00 Single Family Residential 0225-191-03, 04/16/14 TR 18122 76.00 76.00 Single Family 04, 13, 15 & Residential 20 0225-381-06 11/05/14 TR 18034 7.00 7.00 Single Family Residential Street Lighting Maintenance District No. 7-City of Rancho Cucamonga 15 Fiscal Year 2015/16 Annual Engineer's Report Fiscal Year 2015/2016 City of Rancho Cucamonga Street Lighting Maintenance District No. 8 (South Etiwanda) CITY OF RANCHO CUCAMONGA STREET LIGHTING MAINTENANCE DISTRICT NO. 8 (SOUTH ETIWANDA) 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909.477.2740 Fax: 909.477.2741 CITY COUNCIL L. Dennis Michael, Mayor Sam Spagnolo, Mayor Pro Tem William Alexander, Council Member Lynne B. Kennedy, Council Member Diane Williams, Council Member CITY STAFF John R. Gillison, City Manager Linda D. Daniels, Assistant City Manager Lori E. Sassoon, Deputy City Manager/Administrative Services William Wittkopf, Public Works Director Ingrid Y. Bruce, Deputy Director/Department of Innovation & Technology Christopher Bopko, Management Analyst III TABLE OF CONTENTS Engineer's Letter 1 Introduction 3 Reason for Assessment Process for Annual Assessment Plans and Specifications 6 Description of the Boundaries of the District Description of Improvements and Services Map of Improvements Estimate of Costs 23 District Budget Definitions of Budget Items Method of Assessment 26 General General Benefit Special Benefit Method of Assessment Spread Assessment Diagram 30 Assessment Roll 32 Assessment Roll Annexations ENGINEER'S LETTER WHEREAS, on July 15, 2015, the City Council of Rancho Cucamonga (the "City"), under the Landscape and Lighting Act of 1972 (the "1972 Act') adopted its Resolution No. 15-116, 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 NBS to prepare and file an Annual Engineer's Report for Fiscal Year 2015/16 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 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 the 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. SUMMARY OF ASSESSMENT Fiscal Year 2015/16 Total Estimated Assessment $ 70,430.00 Plus Interest Earned 24,180.00 Total Estimated Revenue $ 94,610.00 Less Operating Reserve Fund Contribution 1 130.00 21 Total Expenditure Budget $ 93,480.00 Total District EBU Count 2,301.78 Actual Assessment per EBU $ 30.60 Maximum Allowable Assessment per EBU $ 30.60 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. Street Lighting Maintenance District No. 8-City of Rancho Cucamonga 1 Fiscal Year 2015/16 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 entirely of the maintenance costs of the improvements; b. No assessment has been imposed on any Specially Benefitted 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, the Annual Engineer's Report, Assessment Diagram 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. QpOFESS/p flEWg�y�� No.CM072 .6* ! ? OF CAL\FO Mark A. Steuer, Director of Engine ervices/City Engineer Street Lighting Maintenance District No. 8—City of Rancho Cucamonga 2 Fiscal Year 2015/16 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 repair, removal or replacement of all or any part of any improvement. Servicing means the furnishing of services and materials for the ordinary and usual maintenance, operating and servicing of any improvement. Servicing shall also include vehicle, equipment, capital improvements 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 assessment 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 assessment 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 assessment district by its distinctive designation and indicate the general location of the district. • Refers to the report of the engineer, on file with the clerk, for a full and detailed description of the improvements, the boundaries of the assessment 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 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. During the course or upon conclusion of the hearing, the City Council may order changes in any of the Street Lighting Maintenance District No. 8—City of Rancho Cucamonga 3 Fiscal Year 2015/16 matters provided in the report, including changes in the improvements, any zones within the assessment 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. The basic steps of the assessment ballot procedure are outlined below. The City must prepare a Notice of Public Hearing ("Notice"), which describes, along with other mandated information, the reason for the proposed assessments, and to provide a date and time of a public hearing to be held on the matter. The City must also prepare an assessment ballot, which clearly gives the property owner the ability to sign and mark their assessment ballot either in favor of, or in opposition to the proposed assessment. The Notice and assessment ballot are mailed to each affected property owner within the District a minimum of 45 days prior to the public hearing date as shown in the Notice. The City may also hold a community meeting with the property owners to discuss the issues facing the District and to answer property owner questions directly. After the Notice and assessment ballot are mailed, property owners are given until the close of the public hearing, stated in the Notice, to return their signed and marked assessment ballot. During the public hearing, property owners are given the opportunity to address the City Council and ask questions or voice their concerns. At the public hearing, the returned assessment ballots received prior to the close of the public hearing are tabulated, weighted by the proposed assessment amount on each property and the results are announced by the City Council. Article XIII D provides that if, as a result of the assessment ballot proceeding, a majority protest is found to exist, the City Council shall not have the authority to levy and collect the assessments as proposed. A majority protest exists if the assessments represented by ballots submitted in opposition exceed those submitted in favor of the assessment. All returned ballots are tabulated and weighted according to the financial obligation of each particular parcel. If there is no majority protest as described above, the City Council may approve the proposed assessments. If the is a majority protest, as described above, the City will not levy and collect any assessments. Street Lighting Maintenance District No. 8—City of Rancho Cucamonga 4 Fiscal Year 2015/16 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 Avenue on the west, Highland Avenue on the north and Foothill Boulevard on the south. The southern portion of the District is bounded by East Avenue 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. 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 2015/16 Street Lighting Maintenance District No. 8 9 9 Street Lights and Traffic Signals Improvements 1 210 FW - 1210 WEST RAMP ►2dpFW�If75 gA'MP HIGHLANDgV HIGHLso 'H'? AND AV X15 N17R �Mp e 1�10P a • a z a PMK VICTORIA ST as • BASE LINE RD• as O 4 h F Q .=eo Pe Pa Z yF The rrups;data and Geographic information('tnfortnation') in silable by and through Ne City of Rancho Cucamonga Qare presented as a public n save rsganae)information d The City of Rancho Cticamonga makes nor implies no srrsmv,repreaantaaon or guarantee as to the content if rV OM �Imtt,acuacy completeness or timeliness of anyO Information proidto you herein Theuser should rely URC .th,lnfrtmiwfoanyreamndisdaecedto HS MILLER AV mdepmdant[v.rerifyanymdall Wormationpresentedheres, The Cityof Rancho Cucarrongs explicitly and withwt lamination disclaima any and all representations ando,wranteea.indiidm& \,�5 • but not United to,the implied watrmties ofmachantability and Sones fora particular purpose.The City of Rsncho Cucamonga shall neither accept nor assume my liability,regsrdlesa of Ne causation for(1)any errors,omiriom or maccincies in my information provided andror(it)my action or inaction ocrpting Me to my persons reliance upon the information evei[able hereinas . O�Pp•PnP✓. SCE Streetlights 0 Traffic Signal Lights FOOTHILL 6L SLD8 Boundary 0 0.225 0.45 0.9 Mile ---------- City Boundary Street Lighting Maintenance District No. 8—City of Rancho Cucamonga 6 Fiscal Year 2015/16 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 assessment district levy calculation process, the costs and expenses are reviewed and the annual costs are projected for the following fiscal year. District Budget Estimated 2015/16 Budget Personnel Services Regular Payroll $ 12,080.00 Part-time Salaries 0.00 Fringe Benefits 5.680.00 Subtotal Personnel $ 17,760.00 Operations and Maintenance Training $ 180.00 Membership Dues 30.00 Operations and Maintenance 4,940.00 Equipment Operations & Maintenance 0.00 Contract Services 0.00 Utilities Telephone Utilities 0.00 Electric Utilities 57,120.00 Assessment Administration 10,030.00 General Overhead 3,420.00 Interfund Allocation 0.00 Subtotal Operations and Maintenance $ 75,720.00 Capital Expenditures Capital Projects $ 0.00 Subtotal Capital Expenditures $ 0.00 Total District Expenditure Budget $ 93,480.00 Total Estimated Assessment $ 70,430.00 Plus Interest Earned 24,180.00 Total Estimated Revenue $ 94,610.00 Less Operating Reserve Fund Contribution (1,130.00) Net Revenues/Expenditures $ 93,480.00 Total Estimated Assessment $ 70,434.46 Total District EBU Count 2,301.78 Actual Assessment per EBU — Fiscal Year 2015/16 $ 30.60 Maximum Allowable Assessment per EBU — Fiscal Year 2015/16 1 $ 30.60 Street Lighting Maintenance District No. 8—City of Rancho Cucamonga 7 Fiscal Year 2015/16 The maximum allowable assessment per EBU listed in the District budget above, is the amount which was approved in 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: Estimated Fiscal Year Ending June 30, 2015 Reserve Fund Balance $ 1,996,065.00 Use of Operating Reserve Fund — Fiscal Year 2015/16 0.00 Operating Reserve Contribution — Fiscal Year 2015/16 1,130.00 Estimated Fiscal Year Ending June 30, 2016 Reserve Fund Balance $ 1,997,195.00 Definitions of Budget Items The following definitions describe the costs and expenses included in the District Budget: Personnel Services Regular Salaries: This item includes the costs attributed to the salaries of all full-time employees dedicated to maintenance of the District improvements. Part Time Salaries: This item includes the costs attributed to the salaries of all part time employees dedicated to maintenance of the District improvements. Fringe Benefits: This item includes the benefits available to City employees: health care, vacation, sick time, and retirement fund. Operations and Maintenance Training: International Municipal Signal Association (ISMA) Certification. The cost is split evenly between all of the City's Street Light Maintenance Districts. Membership Dues: ISMA certification. The cost is split evenly between all of the City's Street Light and Maintenance Districts. Utilities - Electric: This item includes the costs to furnish electricity required for the operation and maintenance of the street lights and traffic signals. 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 Street Lighting Maintenance District No. 8—City of Rancho Cucamonga 8 Fiscal Year 2015/16 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 departments and staff 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 assessment district within the City's administrative structure. Capital Expenditures: Capital Projects: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include new monuments, irrigation systems, and other large improvements. Operating Reserve Collection: Operating Reserve Collection: This item includes the amount to be collected to maintain reserves to enable the City to pay for the maintenance and servicing of the improvements prior to December 10 of the fiscal year, or whenever the City expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. The Reserve Fund contribution will continue until such a time the Reserve Fund balance is approximately one half of the annual costs. The fund may be allowed to accumulate in anticipation of any unforeseen expenses not included in the yearly maintenance costs. This may include, but is not limited to, tree replacements, repair of damaged equipment due to vandalism, storms and other similar events. Street Lighting Maintenance District No. 8-City of Rancho Cucamonga 9 Fiscal Year 2015/16 METHOD OF ASSESSMENT General 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]." 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' (Sec. 22547). 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. 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: Street Lighting Maintenance District No. 8-City of Rancho Cucamonga 10 Fiscal Year 2015/16 • 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, shade 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 in 1990, 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 the 1996/97 Fiscal Year. 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 Street Lighting Maintenance District No. 8—City of Rancho Cucamonga 11 Fiscal Year 2015/16 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 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 2015/16 maximum allowable assessment rates for the District: Property Type Maximum Allowable Actual Assessment Total Total (County Use Code) Assessment Rate Rate per EBU Units/Acres EBUs per EBU Single Family Residential $193.75 $30.60 1,171.00 1,171.00 Multi-family Residential 193.75 30.60 1,057.00 1,057.00 Non Residential 193.75 30.60 31.89 63.78 Church 193.75 30.60 5.00 10.00 TOTAL 2,264.89 2,301.78 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. Street Lighting Maintenance District No. 8—City of Rancho Cucamonga 12 Fiscal Year 2015/16 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. 8—City of Rancho Cucamonga 13 Fiscal Year 2015/16 f°;a i1H.iYj �" fit i3se� rsF S S 6at g F� 9 $ 2 i33 � iije;[im iay o till: m n ] w 0 $S!eYt$] ii fn .Z1 W (n ftp le3.fSits Grove Av j Carnelian St Vineyard Av A a) Hellman Avg i Hellman Av ! r Archibald Av i ; Archibald Av j ! Hermosa Av i i � Hermosa Av i Haven Av! Haven Av j i e Milliken Av I ._.._.._....._.J Milliken Av i j ...i Rochester Av j Rochester Av r (� Day Creek Bj i Etiwanda Av Etiwanda Av i Fr East Av .......... i e m °i. f N I T r N 'm I Ly cn � Cherry Av j n CL u O ` < OJ r `! D 00 N Street Lighting Maintenance District No. 8—City of Rancho Cucamonga 14 Fiscal Year 2015/16 ASSESSMENT ROLL Assessment Roll The assessment roll is a listing of the assessment for Fiscal Year 2015/16 apportioned to each lot or parcel, as shown on the last equalized roll of the Assessor of the County of San Bernardino. The following tables summarize the Fiscal Year 2015/16 maximum and actual assessments for the District: Maximum Allowable Maximum Property Type Assessment Rate Total Total Allowable (County Use Codeper EBU Units/Acres EBUs Assessment Single Family Residential $193.75 1,171.00 1,171.00 $226,881.25 Multi-family Residential 193.75 1,057.00 1,057.00 204,793.75 Non Residential 193.75 31.89 63.78 12,357.37 Church 193.75 5.00 10.00 1,937.50 TOTALS 2,264.89 2,301.78 $445,969.37 Actual Property Type Assessment Rate Total Total Actual (County Use Codeper EBU Units/Acres EBUs Assessment Single Family Residential $30.60 1,171.00 1,171.00 $35,832.60 Multi-family Residential 30.60 1,057.00 1,057.00 32,344.20 Non Residential 30.60 31.89 63.78 1,951.66 Church 30.60 5.00 10.00 306.00 TOTALS 2,264.89 2,301.78 $70,434.46 A copy of the full assessment roll is available for review in the City Clerk's office. Annexations The following Annexations are effective for the 2015/16 Fiscal Year. APN Annexation Project Total Total Property Type Date Name Units/Acres EBUS 0227-121-33 08/20/14 TR 16578 6.00 6.00 Single Family & 37 Residential Street Lighting Maintenance District No. 8-City of Rancho Cucamonga 15 Fiscal Year 2015/16