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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
. .
De~: Public Works/Engineering
Subject: Discussion of establishment of
a city-wide assessment district.
.from: Roger Hardgrave
Da~: April 2, 1997
ORIGINAL
Synopsis of Previous Council action:
07/17/90 Resolution No. 90-323 adopted establishing Assessment District
No. 994.
07/18/94 Resolution No. 94-198 adopted extending and expanding Assessment
District No. 994.
07/01/96 Resolution No. 96-209 adopted confirming 1996/97 Assessment Roll
for Assessment District No. 994 in the amount of $4,292,088.
03/31/97 -- Motion relative to Public Works being authorized to proceed with
the establishment of a city-wide assessment district for the
purpose of funding street lighting, street sweeping, traffic
signal maintenance and graffiti abatement was tabled.
Recommended motion:
That the Director of Public Works/City Engineer and City Clerk
be authorized to continue with the necessary legal proceedings,
including preparation of the Engineer's Report and assessment
rolls for establishment of a city-wide assessment district.
cpy: Fred Wilson
Barbara pachon
Jim Penman
CA~
Signature
Contact person:
Les Foqassy
Phone:
<;026
Supporting data attached: Yes Ward:
FUNDING REQUIREMENTS: Amount: $72.500 (Assessment District No. 994)
Source: (Acct. No,) 257-677-5'SO_
(Acct. DescriPtion)
Finance:&1dc<<~114~
Council Notes:
75.0262
4/7/17
Agenda Item No.5 I
. .
STAFF REPORT
Backqround
Assessment District No. 994 was established in July of 1990 in
order to finance the cost of street lighting and street sweeping
services. This district had a five-year sunset clause. In July of
1994, this assessment district was expanded to include the
maintenance and operation of traffic signals, as well as graffiti
removal. A three year sunset clause was included in this
expansion.
Approximately $4.2 million is generated each year by AD 994 to
finance the costs of street lighting, street sweeping, traffic
signals, and graffiti removal. By financing these services through
the assessment district, money from the General Fund was made
available to finance 65 additional positions in the Police
Department.
A commitment was made in 1994 that the amount of supplemental
funding needed for police services would be determined, and a
measure to raise this amount of funds would be presented to the
voters. Measure S was the culmination of this commitment. Since
Measure S was not approved, it seems appropriate to consider a new
assessment district that would maintain the current level of
funding for vital municipal services.
Differences in the Proposed Assessment District
Proposition 218 imposed some new requirements for assessment
districts throughout the state. As a result, the proposed
assessment district would be structured differently than AD 994.
A comparison of AD 994 and the proposed assessment district is
provided as Attachment A.
One of the provisions of Proposition 218 is the imposition of a
higher standard for determining a special benefit. Any costs
attributable to general benefits may not be assessed to the
properties within the district. Agencies establishing assessment
districts now have the burden of proof to show, based upon the
record created before the legislative body, that a valid method was
used to identify the special benefit to be received by properties
within the district. It is anticipated that about 10% of the
services currently provided under AD 994 will be determined to be
general benefits, and necessarily financed from another source.
In addition to the differences regarding special benefit, the
proposed district would also have a more involved protest
procedure. Notices are now sent to all property owners within a
proposed assessment district. Under Proposition 218, a ballot will
also have to be provided to all property owners. These ballots
will be weighted in proportion to the amount of the assessments.
The returned ballots will be tabulated to determine if a majority
of the owners responding support the district.
protest exists, the district cannot be formed.
If a majority
Calculation of Proposed Assessments
In order to comply with Proposition 218's requirements regarding
special benefits, it is proposed that the city be divided into
benefit zones for each service provided. Below is a description of
the proposed method of spreading assessments:
Street Lighting - The city's Street Lighting policies and
Procedures list the type and spacing of street lights on local,
collector, and arterial streets. The unit costs for each of these
three types of streets have been calculated. The city has been
divided into three zones, with each parcel assessed for the unit
cost for street lights on their classification of street.
Street Sweeping - Some major streets are swept weekly, with all
others twice per month. Unit costs have been calculated for these
two frequencies. Two zones of benefit have been established, with
each parcel assessed for the actual costs incurred for the abutting
street.
Traffic Signals - Traffic signals have been divided into three
types, and unit costs have been calculated for each type. The city
has been divided into eleven (11) zones of benefit for this
service, and each parcel would be assessed for the actual costs for
maintenance and operation of traffic signals within that zone.
Graffiti Removal - All incidents of graffiti reported within a
three month period have been mapped using the city's GIS system.
Seven (7) zones of benefit were created for this service by
analyzing the comparable levels of graffiti incidents. The unit
cost for each incident has been multiplied by the number reported
in each zone, and the parcels assessed for the actual costs
incurred.
Maps of the benefit zones for each of these four services are
attached for your reference. It is envisioned that the same
formula currently in place for AD 994 will be used for the proposed
assessment district. This formula is based upon assessment units.
Following is a partial tabulation of the factors used in this
formula:
Land Use
Assessment Unit
Single family residence
Planned unit development (PUD)
Multi-family development
Mobile home space
Commercial development
Vacant parcels
1.0
0.9
0.73
0.31
4/acre
O.S/acre
Formation of the Proposed Assessment District
The services of a consulting Assessment Engineer will be needed to
complete the legally mandated detailed Engineer's Report. It is
also expected that the services of an outside legal counsel that
specializes in assessment district law will need to be retained to
review the documents for compliance with Proposition 218. A
specialized printing company will also be needed to bar code the
protest ballots, and process those ballots when returned.
Below is a preliminary estimate of cost for the necessary
proceedings to establish the new assessment district:
Print and mail notices; process
protest ballots
$ 42,500
23,000
Assessment Engineer
Outside legal counsel
7,000
$ 72,500
TOTAL ESTIMATED COST:
All costs incurred for these proceedings can be financed from the
available balance in the AD 994 Fund.
A tentative schedule for extending the assessment district is
provided as Attachment B. This is a very tight schedule in order
to submit the assessment roll to the County Assessor in time to be
included on the 1997/98 tax bills.
Recommendations
It is recommended that authorization be granted to continue with
the proceedings for the establishment of a new assessment district.
Attachment itA"
, .
Conwarison of AD 994 and the Proposed Assessment Distrkt
AD 994 New Assessment District
What does it fund? Street lighting, street sweeping (twice per Street lighting, street sweeping (twice per
month), traffic signal maintenance, graffiti month), traffic signal maintenance, graffiti
removal removal
Does it fund Police services? Indirectly, 65 Police positions are paid for No. Under Prop 218, assessments can only
using funds that would otherwise be used for pay for services that have special benefits to
assessment district services. the properties assessed.
How is it enacted? Council action; protest hearing process Council action; protest hearing process that
includes a weighted mail ballot procedure.
Requires majority of weight of ballots
responding to support the assessment
How much does it cost? $65 per assessment unit Varies, because each property is assessed for
$47.45 per apartment unit the special benefit it receives. Those
$58.50 per condo, PUD, duplex, and triplex properties receiving more benefits will pay
unit relatively higher assessments. The mailed
$20.15 per mobile home unit in a mobile notices for the assessment will state the
home park amount of the property owner's proposed
assessment on the ballot
How is the assessment Costs spread across an assessment units; Zones of special benefit created for each
calculated? assumes all residents benefit from all services service; any given property may be in one or
more zones. Assumes benefits vary from
property to property
How does the assessment Only if costs increase. If needed, increase Only if costs increase. If needed, increase
increase? cannot exceed CPI or 5%, which ever is less cannot exceed CPI or 5%, which ever is less
Does it have a sunset clause? Yes To be determined
What happens ifthere is a AD 994 sunsets on July 1, 1997 Using last year's assessment as a baseline,
majority protest and the this would create a budget deficit of $4.2
assessment district does not million. City services would have to be
pass? reduced in order to balance the city's General
Fund budget.
What property owners are Government-owned properties, schools, all None. All property owners will be assessed,
exempt? other parcels not assessed property tax unless their specific property derives no
special benefit from district services.
Collection procedure would need to be
established with gov't agencies
. .
Attachment "B"
CITY WIDE ASSESSMENT DISTRICT FORMATION SCHEDULE
March 18 Measure "S" Vote
March 24 10:00 a.m. - review preliminary assessment data
March 26 Submit staff report for Authorization for 3/7 Council
April 7 Authorization to Proceed to Council (Form motion)
April 16 Submit Agenda Item for May 5 Council meeting
May 5
May 23
June 4
June 16
June 25
July 7
July 21
Resolution of Intention, Setting Public Meeting and
Hearing and preliminary approval of Engineer's Report
(including proposed assessment roll)
Absolute last day to mail notices
Submit Agenda item for 06/16 Council
Public Meeting
Submit Agenda Item for 07/07 Council
Public Hearing --- all ballots must be received by the
conclusion of the public input portion of the hearing.
Matter continued to next Council Meeting to allow
tabulation of ballots.
Presentation of tabulation results to Council. Resolution
Ordering Work, establishing the district, approving the
Final Engineer's report and confirming the Assessment
Roll.
.
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