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Home My WebLink About58-Public Works - , CITY OF .$AN BERIClRDINO ~REQUEST ~"N~dbNc'iL ACTION From: ROGER G. t1AROGRAVE, Oi rector Public Works/Engineering Subject: Authorization to Proceed: City-Wide Street Lighting and Sweepi ng Assessment D1 stri ct Dept: Date: October 24, 1989 Synopsis of Previous Council ection: None u;; .:n 1.::-:,) ,"q (..;,;;. C-J . - ci c. . I t..... 1;":" :;r. ~.r; ,-;...,.' C'~ .''1 ( ., r-...J Recommended motion: 1. That the Ci ty Engi neer and Ci ty Cl erk are authorized to proceed wi th initiating proceedings for the establishment of an assessment district under the provisions of Chapte~ 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 sessment D1 stri ct. cc: Marshall Julian. City Administrator Andrew Green. Director of Finance Manuel Moreno. Director Public Services Wlya9 OV9rstr..t. Super1RtaRdaAt gf Pub. Bldgt. Contact person: V"I'"nll N1III tt.:.a II Phona: 384-5026 Supporting data attached: ~+~~~ DAp~r.~ Mfp Ward: 1.2.3.4.5.6.7 FUNDING REQUIREMENTS: Amount: SJO.OOO.OO Source: (Acct. No.1 '1;4-001\-"In401; (Acct. DescriDtionl AU"~. Dhtb,:t:1 FY~~ Fmance: ,(), Council Notes: 75-0262 Agenda Item No. S 8' , C"ITY OF SAN BERQRDINO - REQUEST CbR COUNCIL ACTION STAFF REPORT One suggestion for enhancing revenues is to establish a City-wide 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 Bufldings Division in 1988-89 was $1,742,617. Of this amount, $1,300,000 was for e 1 ectri ca 1 energy cas ts. Many Cities have recognized the mutual benefit of street Hghting 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 distri'ts to raise funds to cover all or a portion of costs for providing street lights. This process will allow funds, formerly spent on the electrical energy for street lights to be diverted to other sped fi ed uses.) The proposed Assessment District will provide addi tional funding for maintainf'ng 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 ligh~ energy costs would provide funds to finance the contract costs for rehabflitating 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 provi de further mai ntenance and beautifi ca ti on of our street system whi ch 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 commercial, 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 this 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 prDperty counts and new necessary costs. 10-24-89 1 75-0264 .J C:ITY OF SAN BEROlRDINO - REQUEST COR COUNCIL ACTION STAFF REPORT Chapter 12.90 of our Municipal Code could be used as the enabling legislation. Notices would have to be sent to all property owners, since there would not be 100S consent. Mailing notices to all property owners would cost about $12,000. The code caul d be revised to delete the requi rement to mail noti ces 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 district 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. ~. y 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 formati on of a city-wi de assessment di stri ct for street li ghti ng 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 shaul d be realized tha t they repre sent on 1 y a small fracti on of the tota 1 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 City Engineer and City Clerk be authorized to proceed with the establishment of the proposed assessment district and engage an Assessment Engi neer (Consul tant with experience in this type of distri 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.) 10-24-89 2 75-0264 '. o ~ .. -- , , , , , , , , ~ , : , , , : , I = --- 1\ ---+ IO.Z~ .~., 10-24-89