HomeMy WebLinkAbout20951 - RESOLUTIONS - 6/2/2004 RESOLUTION NO. 20951
' OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,
CALIFORNIA, INITOATING PROCEEDINGS FOR THE
BALLOTING OF INCREASED ASSESSMENTS AND TO
PRELIMINARILY APPROVE THE ENGINEER'S REPORT,
FISCAL YEAR 2004-2005, FOR THE PALM SPRINGS
STREET LIGHTING MAINTENANCE DISTRICT NO. 2
WHEREAS,the City Council has, by previous Resolutions,formed the Palm Springs Street
Lighting Maintenance District No. 2 (hereafter referred to as"District No. 2")pursuant to the
provisions of the Street Lighting Act of 1931, Part 2 of Division 14 of the Streets and
Highways Code of the State of California, beginning with §18300 (hereafter referred to as
the "Act"), that provides for the levy and collection of assessments by the City of Palm
Springs to pay the maintenance and services of improvements and all appurtenant facilities
and operations related thereto; and
WHEREAS, District No.2 includes an existing street lighting and electrical system within the
boundary of District No. 2; and
WHEREAS, the Act provides for the levy and collection of assessments by the County of
Riverside for the City of Palm Springs to pay cost for the maintenance and services of all
improvements and facilities related thereto; and
WHEREAS, the City Engineer has prepared an Engineer's Annual Levy Report (hereafter
referred to as the "Engineer's Report") in accordance with the Act, and in accordance with
the requirements of Articles XIIIC and XIIID of the California Constitution; and
WHEREAS, there has now been presented to the City Council the Engineer's Report for
District No. 2 for Fiscal Year 2004-2005; and
WHEREAS,the City Council has carefully examined and reviewed the Engineer's Report as
presented, and is preliminarily satisfied with District No. 2, each and all of the budget items
and documents as set forth therein, and is satisfied that the assessments have been spread
in accordance with the benefits received from the improvements, operation, maintenance
and services to be performed within District No. 2, as set forth in the Engineer's Report.
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs, as
follows:
Section 1. The above recitals are all true and correct.
Section 2. The Engineer's Report as presented, consists of the following:
a. A Description of the District and Improvements; and
b. The Annual Budget (Costs and Expenses of Services, Operation and
Maintenance); and
c. The method of apportionment for calculating the assessment for each of
the assessed parcels and/or a collection roll containing the proposed levy
' amount for each assessed parcel within the District to be balloted for
Fiscal Year 2004-2005.
Resolution 20951
Paqe 2
Section 3. The Engineer's Report is hereby preliminarily approved,and the assessment '
amounts so described are greater than the maximum assessment amounts
previously approved by property owner petition or balloting. All property
owners subject to an increased assessment shall be balloted pursuant to
Article XIIID of the California Constitution.
Section 4. The Engineer's Report for District No. 2 is hereby ordered to be filed in the
Office of the City Clerk as a permanent record and to remain open to public
inspection. The City Clerk shall certify to the passage and adoption of this
Resolution, and the minutes of this meeting shall so reflect the presentation
of the Engineer's Report.
ADOPTED this 2nd day of June, 2004.
AYES: Members Foat, McCulloch, Mills, Pougnet, and Mayor Oden
NOES: None
ASSENT: None
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
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DISTRICT NO.2 —
CITY OF PALM SPRINGS
ENGINEER'S REPORT
STREET LIGHTING MAINTENANCE DISTRICT NO. 2
"McMANUS DRIVE"
FISCAL YEAR 2004-2005
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Intent Meeting: June 2, 2004
Public Hearing: July 21, 2004
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City of Palm Springs—Engineer's Report
Street Lighting Maintenance District No. 2, McManus Drive
Engineer's Report Affidavit
Palm Springs Lighting Maintenance District No. 2, "Mc Manus Drive"
This Report describes the District including the improvements, budget, parcels and
assessments to be levied for fiscal year 2004-2005, as they existed at the time of the
passage of the Resolution of Intention. Reference is hereby made to the Riverside
County Assessor's maps for a detailed description of the lines and dimensions of parcels
within the District. The undersigned respectfully submits the enclosed Report as directed
by the City Council.
Dated this 2 Iy day of 112 2004.
By: 62C L
David J. Barakian, P.E.
Director of Public Works/City Engineer
City of Palm Springs
Civil Engineer C 28931
City of Palm Springs—Engineer's Report
Street Lighting Maintenance District No. 2, McManus Drive
CITY OF PALM SRINGS
ENGINEER'S REPORT
STREET LIGHTING
MAINTENANCE DISTRICT NO. 2— McMANUS DRIVE
FY 2004-05
The Undersigned respectfully submits the enclosed report as directed by the City
Council. The undersigned certifies that he is a Professional Engineer. Registered in the
State of California
David J. Barakian, P.E.
Director of Public Works/City Engineer
City of Palm Springs
County of Riverside, California
I HEREBY CERTIFY that the enclosed Engineer's Report, together with the Assessment
Roll and Assessment Diagram thereto attached, was filed with me on the _day of
, 2004.
Patricia J. Sanders, City Clerk
City of Palm Springs
County of Riverside, California
I HEREBY CERTIFY that the enclosed Engineer's Report, together with the Assessment
Roll thereto attached, was approved and confirmed by the City Council of the City of
Cathedral City, California, on the_day of 2004.
Patricia J. Sanders, City Clerk
City of Palm Springs
County of Riverside, California
Y14
City of Palm Springs—Engineer's Report
Street Lighting Maintenance District No. 2, McManus Drive
TABLE OF CONTENTS
EXECUTIVE SUMMARY ............................................................................................................I
A. Introduction.....................................................................................................I
B. Overview ........................................................................................................I
DESCRIPTION OF THE DISTRICT............................................................................................2
A. Description of the District................................................................................2
B. Description of Improvements and Services.....................................................2
METHOD OF APPORTIONMENT...............................................................................................3
A. General...........................................................................................................3
B. Benefit Analysis..............................................................................................3
C. Assessment Methodology...............................................................................4
D. Assessment Range Formula ..........................................................................4
DISTRICTBUDGET....................................................................................................................5
A. Description of Budget Items............................................................................5
B. District Budget, Fiscal Year 2004/05...............................................................6
APPENDIXA— District Diagram .................................................................................................8
APPENDIX BB—Assessment Roll.................................................................................................10
City of Palm Springs—Engineer's Report
Street Lighting Maintenance District No. 2, McManus Drive
EXECUTIVE SUMMARY '
A. INTRODUCTION
The purpose of this Engineer's Report (hereinafter referred to as the "Report") is to set forth
the engineering analysis and findings for the levy of assessments in the City of Palm
Springs (hereinafter referred to as the "City") Street Lighting Maintenance District No. 2,
"McManus Drive", (hereinafter referred to as the "District"), for fiscal year 2004-2005, in
compliance with the requirements of the Street Lighting Act of 1931 (hereinafter referred to
as the "1931 Act") which is Part 2 of Division 14 of the California Streets and Highways
Code and as provided by Article XIII D of the California Constitution (hereinafter referred to
as "Article XIII D"). This District was formed to supplement certain City revenues and help
finance the costs of providing for the maintenance of certain public improvements including
but not limited to street lighting, within the District's boundaries.
This report is prepared for the levy and collection of annual assessments for the District for
fiscal year 2004-2005.
The City initiates proceedings for annual levying of assessments within the District by
passing a resolution, which states that the District was established under the Act. This
resolution also describes the improvements, describes the name and location of the District,
and preliminarily approves the Engineer's Report.
The report prepared by the engineer must include an estimate of the costs of the
improvements, a diagram, i.e., map of the District showing the boundary of the District and
an assessment of the estimated costs of the improvements against the parcels or lots which
benefit from the improvements. Once the report is completed it is presented to the City
Council for its review and approval as presented, or it may be modified and approved.
After the report is approved, the City Council may adopt a Resolution of Intention, which
declares its intent to levy and collect assessments, describes the improvements, and refers
to the report for details of the District. The Resolution of Intention also sets a time and place
for a hearing on the proposed assessments.
Any new or increased assessments must be approved by Assessment Ballots mailed to the
property owners of the parcels assessed no later than 45 days prior to the public hearing.
Approval will be determined by weighing the ballots according to the proportional obligation
of the affected property in the district.
At the time of the public hearing, Assessment Ballots will be tallied and this information will
be combined with the Engineer's Report for the District for approval prior to submitting
assessments to the County Auditor/Controller.
B. OVERVIEW
The District described in this report contains parcels of land within the residential area '
referred to as McManus Drive. "
City of Palm Springs, Lighting Maintenance District No. 2 Page 1
City of Palm Springs—Engineer's Report
Street Lighting Maintenance District No. 2, McManus Drive
' The City proposes to annually levy and collect special assessments to continue the
maintenance of the improvements within the District. Assessments within the District are
proposed to be levied pursuant to the provisions of the Street Lighting Act of 1931, Division
14, Part 2 of the Streets and Highways Code.
The assessments described in this Engineer's Report (hereinafter referred to as the
"Report") shall be levied upon each parcel within the boundaries of the District and
assessments shall be proportional to the special benefit received from the maintenance of
the improvements. For the District, a benefit assessment rate per Dwelling Unit is
established based upon estimated and actual operations and maintenance costs for the
year. This establishes the maximum approved benefit assessment rate ("Maximum Rate")
for the current year. Commencing with fiscal year 2005-06, and then each subsequent year,
the maximum assessment rate is proposed to be increased based upon the Consumer Price
Index, All Urban Consumers, for the Los Angeles-Orange-Riverside County Area ("CPI"), as
determined by the United States Department of Labor, Bureau of Labor Statistics, or its
successor. The Engineer shall compute the percentage difference between the CPI for
February of each year and the CPI for the previous February, and shall then adjust the
existing assessment by an amount not to exceed such percentage for the following fiscal
year. Should the Bureau of Labor Statistics revise such index or discontinue the preparation
of such index, the Engineer shall use the revised index or a comparable system as
approved by the City Council for determining fluctuations in the cost of living.
This Report describes the District and the proposed assessments for fiscal year 2004-05.
The annual budget for the maintenance and operation of the improvements is based on
estimated expenses for the upcoming fiscal year.
' The word "parcel," for the purposes of this Report, refers to an individual property assigned
its own Assessment Parcel Number by the Riverside County ("County") Assessor's Office.
The Riverside County Auditor/Controller uses Assessment Parcel Numbers and specific
Fund Numbers to identify on the tax roll properties assessed for special district benefit
assessments.
DESCRIPTION OF THE DISTWCT
A. DESCRIPTION OF THE DISTRICT
The District,McManus Drive, is located within the boundaries of the City of Palm Springs,
south of Alejo Road and east of Sunrise Way. The properties within the District include 25
single-family residential parcels.
The purpose of the District is to ensure the ongoing maintenance, operation and servicing of
local street lighting improvements installed in connection with development of properties
within the District. This District will provide the financial mechanism (annual assessments)
by which the ongoing operation and maintenance of these improvements will be funded.
The District structure, method of apportionment and assessments described in this Report
are based on existing improvement plans and estimated direct expenditures, incidental
expenses, and reserves associated with the maintenance and servicing of the
improvements.
' B. DESCRIPTION OF IMPROVEMENTS AND SERVICES
The purpose of the District is to ensure the ongoing maintenance, operation and servicing of
street lighting improvements within the District. These improvements may include, but are
not limited to, all materials, equipment, utilities, labor and appurtenant facilities related to
those improvements. The proposed improvements installed as part of the development and
WAAaR
City of Palm Springs, Lighting Maintenance District No, 2 1 4 V Page 2
City of Palm Springs--Engineer's Report
Street Lighting Maintenance District No. 2, McManus Drive
to be maintained and funded entirely or partially through the District assessments generally
include the following:
• Street lighting facilities located in McManus Drive; and
• All appurtenant facilities, equipment, materials and utilities related to the aforementioned
improvements.
The estimated annual cost to provide and maintain the improvements within the District shall
be allocated to each property in proportion to the special benefits received. The Method of
Apportionment used in this Report utilizes commonly accepted assessment engineering
practices.
Public Street Lighting Improvements
The street lighting improvements may include, but are not limited to, electrical energy,
lighting fixtures, poles, meters, conduits, electrical cable and associated appurtenant
facilities associated with:
• All street lighting within the Street Lighting Maintenance District No.2 - McManus Drive.
METHOD OF APPORTIONMENT
A. GENERAL
The method used for calculating assessments reflects the composition of the parcels and
the improvements and services provided within the District to fairly apportion the costs
based on estimated benefit to each parcel.
A parcel's assessment may not exceed the reasonable cost of the proportional special
benefit conferred on that parcel. Only special benefits are assessable and the City must
separate the general benefits from the special benefits.
B. BENEFIT ANALYSIS
All improvements associated with this District have been identified as necessary, required
and desired for the orderly development of the properties within the District to their full
potential, consistent with the proposed development plans. As such, these improvements
would be necessary and required of individual property owners for the development of such
properties, and the ongoing operation, servicing and maintenance of these improvements
would be the financial obligation of those properties. Therefore, the improvements and the
annual costs of maintenance and operation of the improvements are of direct and special
benefit to the properties.
The method of apportionment (method of assessment) is based on the premise that each
assessed parcel within the District receives benefit from the improvements. The desirability
and security of properties is enhanced by the presence of street lighting in close proximity to
those properties.
The special benefits of street lighting are the convenience, safety, and security of property,
improvements, and goods. Specifically: ,
• Enhanced deterrence of crime and the aid to police protection;
• Increased nighttime safety on roads and streets;
• Improved ability of pedestrians and motorists to see; ly#q
A9
City of Palm Springs, Lighting Maintenance District No. 2 Page 3
City of Palm Springs—Engineer's Report
Street Lighting Maintenance District No. 2, McManus Drive
' Improved ingress and egress to property;
• Reduced vandalism and other criminal act and damage to improvements or property;
• Improved traffic circulation and reduced nighttime accidents and personal property loss;
and,
All of the preceding special benefits contribute to a specific enhancement and desirability of
each of the assessed parcels within the District. Although the improvements may include
lighting improvements and other amenities available or visible to the public at large, the
maintenance of these improvements is only necessary for the properties within the District
and are not required nor necessarily desired by any properties or developments outside the
District boundary. Therefore, any public access or use of the improvements by others is
incidental and there is no measurable general benefit to properties outside the District or to
the public at large.
C. ASSESSMENT METHODOLOGY
The method of apportionment for the District calculates the receipt of special benefit from
the respective improvements based on the actual land use of the parcels within the District.
The special benefit received by each lot or parcel is equated to the overall land use of the
parcel based on the parcel's actual land use, and is reliant upon the special benefit received
from the improvements within the District.
To identify and determine the special benefit to be received by each parcel, it is necessary
to consider the entire scope of the District improvements as well as individual property
development within the District. The costs associated with the improvements shall be fairly
distributed among the parcels based upon the special benefit received by each parcel.
Proper maintenance and operation of the street lighting system benefits all properties by
enhancing overall safety, mitigating crime, alleviating the fear of crime, and enhancing
pedestrian safety.
The street lighting located on McManus Drive provides 100% special and direct benefit to all
properties within the District. These lighting benefits are directly related to the positive
enhancement of the area increasing property desirability. Therefore 100% of the costs of
the lights will be apportioned to each parcel on a single-family residential unit basis. The
benefits are the same for all lots but one parcel (No. 502-034-019) consists of 2 lots,
therefore the assessment for this parcel is double.
D. ASSESSMENT RANGE FORMULA
Any new or increased assessment requires certain noticing and meeting requirements by
law. Prior to the passage of Proposition 218 (California Constitution Articles XIIIC and XIIID),
legislative changes in the Brown Act defined a "new or increased assessment" to exclude
certain conditions. These conditions included "any assessment that does not exceed an
assessment formula or range of assessments previously adopted by the agency or
approved by the voters in the area where the assessment is imposed." This definition and
conditions were later confirmed through Senate Bill 919 (Proposition 218 implementing
legislation).
' The purpose of establishing an Assessment Range Formula is to provide for reasonable
increases and inflationary adjustment to annual assessments without requiring costly
noticing and mailing procedures, which could add to the District costs and assessments.
This District provides for an annual adjustment to the Maximum Assessment Rate based
upon the Consumer Price Index for the Los Angeles-Orange-Riverside County Area.
(Wo
City of Palm Springs, Lighting Maintenance District No. 2 Page 4
City of Palm Springs--Engineer's Report
Street Lighting Maintenance District No. 2, McManus Drive
The Assessment Range Formula shall be applied to all future assessments within the '
District. Generally, if the proposed annual assessment for the current fiscal year is less than
or equal to the calculated Maximum Assessment, then the proposed annual assessment is
not considered an increased assessment. The Maximum Assessment is equal to the initial
Assessment (approved by property owners within the District) adjusted annually based upon
the Consumer Price Index.
Beginning in the second fiscal year (fiscal year 2005-06) and each fiscal year thereafter, the
Maximum Assessment would be recalculated and a new Maximum Assessment established
within the District.
The Maximum Assessment is adjusted annually and is calculated independent of the
District's annual budget and proposed annual assessment. Any proposed annual
assessment less than or equal to this Maximum Assessment) is not considered an
increased assessment, even if the proposed assessment is greater than the assessment
applied in the prior fiscal year.
Although the Maximum Assessment will increase each year, the actual assessment may
remain unchanged. The Maximum Assessment adjustment is designed to establish a
reasonable limit on assessments. The Maximum Assessment calculated each year does not
require or facilitate an increase to the annual assessment and neither does it restrict
assessments to the adjustment maximum amount. If the budget and assessment for the
fiscal year do not require an increase, or the increase is less than the adjusted Maximum
Assessment, then the required budget and assessment may be applied without additional
property owner balloting. If the budget and assessments calculated requires an increase
greater than the adjusted Maximum Assessment, then the assessment is considered an '
increased assessment and would be subject to balloting.
DISTRICT BUDGET
A. DESCRIPTION OF BUDGET ITEMS
For the purpose of estimating costs for the maintenance and servicing, actual costs are
used where possible. But where the improvements are new, or where actual maintenance
experience is lacking, cost estimates will be used to determine costs, as follows:
Street light energy costs: The cost of energy is based on current Edison rates.
Street light maintenance: Includes maintenance labor, materials and equipment required to
properly maintain the authorized improvements and services within the District.
Incidental costs: Costs for special items, such as costs of levying the assessments with the
County Tax Collector, anticipated utility rate hikes, or other such costs, are determined
individually.
Another Incidental Cost is the expense of Assessment Engineering services. This includes
costs of performing annual assessment engineering, determining existing or estimated
costs, retaining of consultants, preparation of the Engineer's Report, and other related costs,
such as publication of notices, mailings, etc. '
Another Incidental Cost is the County Assessor-Tax Collector's charge of $25 per County
assessment account plus $0.20 per levied parcel, to place the assessments on the tax rolls.
This charge will be distributed between the benefit Districts. ISOV
City of Palm Springs, Lighting Maintenance District No. 2 Page 5
City of Palm Springs—Engineer's Report
Street Lighting Maintenance District No. 2, McManus Drive
Consumer Price Index Adjustment: Commencing with fiscal year 2005/2006, and then each
subsequent year, the maximum assessment rate is proposed to be increased based upon the
Consumer Price Index, All Urban Consumers, for the Los Angeles-Orange-Riverside County
Area ("CPI"), as determined by the United States Department of Labor, Bureau of Labor
Statistics, or its successor. The Engineer shall compute the percentage difference between the
CPI for February of each year and the CPI for the previous February, and shall then adjust the
maximum existing assessment by an amount not to exceed such percentage for the following
fiscal year. Should the Bureau of Labor Statistics revise such index or discontinue the
preparation of such index, the Engineer shall use the revised index or a comparable system as
approved by the City Council for determining fluctuations in the cost of living.
Miscellaneous: All cost estimates shall be rounded to the nearest dollar, except where specified
differently above. The total amount to be levied on any parcel will be rounded to an even
number to accommodate collection on the property tax bill in two equal installments.
B. DISTRICT BUDGET, FISCAL YEAR 2004/05, is shown on the following page.
City of Palm Springs, Lighting Maintenance District No. 2 Page 6
City of Palm Springs—Engineer's Report
Street Lighting Maintenance District No. 2, McManus Drive
DISTRICT BUDGET FISCAL YEAR 2004/05
LIGHTING DISTRICT NO. 2 (Me MANUS DRIVE)- Formed in 1967
A. LIGHTING MAINTENANCE ANNUAL COSTS 2004/05
1. Southern California Edison $3,910
2. Labor and Administration $2,357
3. MmuFinancial Consultant $3,667
TOTAL COSTS: $9,934
Note: Maximum approved in FY 91/92: $4,250
B. Actual Costs vs. Assessments Summary:
Account (Deficit) on 6/30/02 (from 03/04 Engineer's Report)= ($5,680)
Assessment in 02/03= $4,250
Actual Costs in 02/03= 5 231
Account Deficit as of 6/30/03= ($6,661)
Assessment in 03/04= $4,250
Projected Costs in 03/04= 5 493
Projected Account Deficit as of 6/30/04= ($7,904)
C. ASSESSMENT '
- Estimated cost for 2004/2005 = $9,934
- Considering reimbursement of the deficit(as of 6/30/04) over a 5 year period: $7,904 /5 = $1,581
Total = $11,515
D. Number of parcels in district = 25
E. Cost per parcel in 2004105 ($11,515 divided by 26 = 442.89) 24 parcels $442.89 each, and
1 parcel$885.78
F. "Actual Costs" vs. "Assessments" History (Previous Closed Out 5 Years):
Actual Costs: 98/99= $3,675 99/00= $3,556 00/01= $4,053 01/02= $4,510 02/03= $5,231
Assessments $2,412 $2,412 $4,250 $4,250 $4,250
G. Budget(Expenditure Detail)- see Account No.001-4301-43610
This report has been prepared pursuant to the "Landscaping & Lighting Act of 1972" (Division 15, Part 2 of the
Streets and Highways Code and Article XIIID, Section 4 of the California Constitution(Proposition 218).
IVA 33
City of Palm Springs, Lighting Maintenance District No. 2 Page 7
City of Palm Springs—Engineer's Report
Street Lighting Maintenance District No. 2; McManus Drive
' APPENDIX A - DISTRICT DIAGRAM
The parcels within the Palm Springs Street Lighting Maintenance District No. 2, McManus Drive,
are shown on the current Riverside County Assessor's Parcel Map Book 502 Pages 03 and 04.
This County Assessor's Parcel Map along with the Assessment Roll constitutes the District
Assessment Diagram. A copy of the McManus Drive Lighting District No.2 Boundary is shown
on the following page.
1
City of Palm Springs, Lighting Maintenance District No. 2 Page 8
City of Palm Springs—Engineer's Report
Street Lighting Maintenance District No. 2, McManus Drive
APPENDIX B - ASSESSMENT ROLL '
Parcel identification for each lot or parcel within the District shall be the parcel as shown on the
Riverside County Secured Roll for the year in which this Report is prepared and reflective of the
Assessor's Parcel Map(s) associated with the Secured Roll. A listing of parcels assessed within
this District, along with the assessment amounts, is shown on the following table.
36
City of Palm Springs, Lighting Maintenance District No. 2 Page 10
City of Palm Springs—Engineer's Report
Street Lighting Maintenance District No. 2, McManus Drive
City of Palm Springs
RIVERSIDE COUNTY ASSESSMENT ROLL
STREET LIGHTING MAINTENANCE DISTRICT NO.2-"McMANUS DRIVE"
FISCAL YEAR 2004-05
FUND NO. 68-2611
ASSESSOR'S PARCEL NO. ASSESSMENT AMOUNT
502-034-009-3 $422.89
502-034-010-3 "
502-034-013-6 "
502-034-014-7
502-034-015-8
502-034-016-9 $422.89
502-034-019-2 $845.78
502-035-001-8 $422.89
502-035-002-9 "
502-035-003-0
' 502-035-004-1
502-035-005-2
502-035-006-3 "
502-035-007-4 "
502-044-007-2 "
502-044-008-3 "
502-044-009-4 "
502-044-010-4 "
502-044-011-5 "
502-044-012-6 "
502-045-001-9 "
502-045-002-0 "
502-045-003-1 "
502-045-004-2
' 502-045-005-3 $422.89
TOTAL of 25 PARCELS $11,515.00
I gA37
City of Palm Springs, Lighting Maintenance District No. 2 Page 11