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-. CITY OF SAN BER~ ARDINO t'REQUEST I..OR Ncdtlt4CIL ACTION
From:
ROGER G. HARDGRAVE, Director
Public Works/Engineering
Subject:
Authorization to Proceed:
City-Wide Street Lighting and
Sweeping Assessment District
Dept:
Date: October 24, 1989
Synopsis of Previous Council action:
None
Recommended motion:
1. That the City Engineer and City Clerk are authorized to proceed with
initiating proceedings for the establishment of an assessment district under the
provisions of Chapter 12.90 of the San Bernardino Muncipal Code and that the
City Engineer is directed to prepare an Engineer's Report for the proposed
assessment of cost of electical enegery for Street Lignts and twice a month
street sweeping in the entire City of San Bernardino.
2. That the City Engineer is authorized to issue Request for Proposals for
Assessment Engineering services in connectio ith the propose
District.
cc: Marshall Julian, City Administrator
Andrew Green, Director of Finance
Manuel Moreno, Director Public Services
Wayne O"erstreet, Superintendent of Pub. Illdgs.
Contact person:
V/'rnp NiH1p;l1l
Phone:
384-5029
Supporting data attached:
~T;lff R~porT. M~p
Ward:
1,2,3,4,5,9,7
FUNDING REQUIREMENTS:
Amount:
$30,000.00
Source: (Acct. No.) ?l;4-nnn-1n4nl;
(Acct. DescriPtion)
A~~eUi. Dht'n ~v, FU~~
Finance: U,~ f:J/
Council Notes:
7S-0262
Agenda Item NO.~ :3 _
C.ITY OF SAN BER, ARDINO - REQUEST.-OR COUNCIL ACTION
STAFF REPORT
One suggesti on for enhanci ng revenues is to establ ish a Ci ty-wi de assessment
district for street lighting energy costs and twice monthly street sweeping
expenses. Following is some pertinent information on this proposed district.
The total budget for the Street Lighting Section of the Public Buildings
Division in 1988-89 was $1,742,617. Of this amount, $1,300,000 was for
electrical energy costs.
Many Cities have recognized the mutual benefit of street lighting received by
residents, both for safety reasons on major streets and improved comfort levels
in residential neighborhoods. In view of the universal benefit, they have
established assessment districts to raise funds to cover all or a portion of
costs for providing street lights. This process will allow funds, formerly
spent on the electri cal energy for street 1 i ghts to be di verted to other
specifi ed uses.
The proposed Assessment District will provide additional funding for maintaining
the City's largest single asset, namely the street system valued at well over
$500,000,000. Current funding levels for maintenance of the City street system
is inadequate to prevent deterioration. The "freeing-up" of funds presently
spent for street light energy costs would provide funds to finance the contract
costs for rehabilitating deficient portions of major streets. This process will
not provide the complete answer to our street maintenance needs, but will
provide some very much needed supplemental funding.
The inclusion of twice a month street sweeping into the Assessment District will
provide further maintenance and beautification of our street system which over
the long run benefits both the street system and the owners within the City.
This total annual cost of $850,000, will be raised by the proposed assessment
di stri ct.
The total cost that will be raised by the District is approximately
$2,150,000. Based upon information from the County Assessor's Office, as of
June 19, 1989, there are 2,480 commerci al, 491 industrial, 35,424 residential,
6,277 vacant and 305 other parcels of land within the City of San Bernardino.
This equates to a total count of 44,977 individual parcels of land.
The most critical factor in forming an assessment district will be the method
for determining benefit. For thi s purpose, it is recommended that a Consultant
with experience in this type of District be brought on board to assist staff
with the alternatives as used by other Cities at an estimated cost of
$12,000.00. One possibility is to establish a flat rate per parcel by land
use. For example, residential parcels could be assessed $50.00 per year,
commercial/industrial parcels at $100.00 per year vacant land at $25.00 per
year. This would generate approximately $2,232,850 per year. This rate would
be adjusted annually to accomodate new property counts and new necessary costs.
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75-0264
CITY OF SAN BER., -'RDINO - REQUEST ~OR COUNCIL ACTION
STAFF REPORT
Chapter 12.90 of our Municipal Code could be used as the enabling legislation.
Noti ces woul d have to be sent to all property owners, si nce there woul d not be
100% consent. Mailing notices to all property owners would cost about $12,000.
The code could be revised to delete the requirement to mail notices for
assessment districts in excess of certain thresholds. While this would reduce
the cost, it is not recommended as mailing notices allows the correct
information to be conveyed directly to the property owners and avoids them
having to depend upon the news media and rumors.
To set up the di strict through the protest hearing will necessitate a great deal
of staff time estimated at $5,000.00 plus the hiring of temporary help at an
estimated cost of $1,200.00. Depending upon what method of assessment is
chosen, it is possible that one or two full time employees plus a PC computer
each could be needed to administer the district. The cost of the full time
employees however, would be charged to the district.
By limiting the district to energy costs only on the street lights will mean
that the City would still be financing approximately $442,000 annually for
street light maintenance.
The formation of a city-wide assessment district for street lighting energy
costs and twice a month street sweeping is a feasible method of providing funds
for rehabilitation of major streets. Extensive protests will be registered and
should be fully expected. While 500 plus protestors appears formidable, it
should be realized that they represent only a small fraction of the total
property owners. Formation of an assessment district will entail considerable
effort and expense, and should not be commenced unless there is a total
commitment to this endeavor. ----
We recommend that the Ci ty Engi neer and Ci ty Cl erk be authori zed to proceed
with the establishment of the proposed assessment district and engage an
Assessment Engi neer (Consul tant wi th experi ence in thi s type of di stri ct) to
prepare a feasibility study. (This study would survey other cities who have
established this type of district, analysis of methods of determining benefit
assessments and projected revenue wi th vari ous types of assessments.)
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