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HomeMy WebLinkAboutItem HSEA'( e��2 AGENDA STAFF REPORT �OFORN DATE: June 11, 2018 TO: Honorable Mayor and City Council THRU: Jill R. Ingram, City Manager FROM: Victoria L. Beatley, Director of Finance /City Treasurer SUBJECT: Seal Beach Street Lighting Assessment District No. 1 SUMMARY OF REQUEST: That the City Council adopt Resolution 6831 confirming the diagram, assessment, and levying assessments for the Seal Beach Street Lighting Assessment District No.1 (District) for Fiscal Year 2018 -2019. BACKGROUND AND ANALYSIS: At the April 23, 2018 City Council meeting, the Council adopted a resolution initiating the annual levy of assessments, a resolution approving the Engineer's Report and a resolution of intention setting the date for the public hearing on June 11, 2018. Assessments for the District are being levied for the following improvements: A) The maintenance and servicing of arterial street lights which provide an area -wide special benefit to all assessable parcels within the district, whether or not such parcels are in close proximity to such lights; and B) The maintenance and servicing of streetlights in close proximity to certain lots and parcels that provide a local special benefit to such lots or parcels. The total assessment for each parcel reflects a combination of the area wide and local special benefit received by the parcel. The amount of special benefit in each category for residential parcels varies depending on the type of dwelling, e.g. whether single family or multiple units. Non - residential parcels are assessed an area wide special benefit based on square footage and a local special benefit based on front footage. The assessment for each parcel of property in the district is based upon the benefit derived from street lighting. Total estimated costs for providing street lighting for FY 2018 -2019 are $196,400, which includes utility costs of $186,800 and assessment engineer costs of $9,600. The Reserve Fund is estimated to be Agenda Item H $0 as of June 30, 2018. Therefore, in order to cover the estimated Fiscal Year 2018 -2019 expenditures of $196,400, the total revenues required are $141,606 in assessments plus a General Fund contribution of $54,794. A comparison of the last two years' assessments to the proposed assessment is summarized in the following table: Zone 1 Single family homes in College Park East & West, The Hill & Cove Areas Zone 2 Single family homes in Old Town Zone 3 Leisure World Condominiums Zone 4 Surfside FY FY FY 2016/17 2017/18 2018/19 $21.86 $21.86 $21.86 $11.26 $11.26 $11.26 $1.21 $1.21 $1.21 $4.15 $4.15 $4.15 Actual assessments may be found in the Engineer's Report on file in the Office of the City Clerk. Before the end of the hearing, any interested person may file a written protest with the City Clerk or, having previously filed a protest may file a written withdrawal of that protest. A written protest shall state all grounds of objection. Protest by a property owner shall contain a description sufficient to identify the property. State law requires that all interested persons shall be afforded the opportunity to hear and be heard at the public hearing and that the Council shall consider all oral and written communications. The statute allows Council Members to order changes during the course of the hearing. These changes may relate to any of the matters proposed in the report. All changes must be reflected in the resolution confirming the diagram and assessment. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: No legal analysis is required for this item. FINANCIAL IMPACT: The financial impact to the General Fund for Fiscal Year 2018 -2019 is approximately $54,794. The Fiscal Year 2018 -2019 budget has $54,794 appropriated, approved by the Director of Finance. Page 2 RECOMMENDATION: Upon conclusion of the public hearing, staff requests the City Council adopt Resolution 6831 confirming the diagram and assessment, either as originally proposed or as revised. Adoption of the resolution shall constitute the levy of the assessment for Fiscal Year 2018 -2019. SUBMITTED BY: ` ktmn .e. J3eat&y Victoria L. Beatley, Director of Finance /City Treasurer ATTACHMENTS: NOTED AND APPROVED: JW X -7ngwm Jill R. Ingram, City Manager A. Resolution 6831 B. Engineers Annual Levy Report C. Assessment Roll Page 3 Attachment "A" RESOLUTION 6831 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL CONFIRMING THE DIAGRAM AND ASSESSMENT AND LEVYING ASSESSMENTS FOR THE SEAL BEACH STREET LIGHTING ASSESSMENT DISTRICT NO. 1 FOR FISCAL YEAR 2018 -2019 WHEREAS, City Council Resolution No. 6811 initiated the proceedings for the annual levy of assessments for Fiscal Year 2018 -2019; and WHEREAS, City Council Resolution No. 6812 declared the City Council's intention to provide for the annual levy and collection of assessments and set a time and place for a public hearing thereon; and WHEREAS, City Council Resolution No. 6813 approved the Engineer's Report as filed in connection with such levy; and WHEREAS, notice was duly given and a public hearing held during which all interested persons were afforded the opportunity to hear and be heard. THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: Section 1. That based upon the Engineer's Report, a copy of which is on file in the Office of the City Clerk, information presented at the public hearing, and other reports and information, the City Council hereby finds and determines that: 1. The district of land within Street Lighting District No. 1 will be benefited by the improvements to be made; 2. The district of land within Street Lighting District No. 1 includes all the lands to be benefited; and 3. The net amount to be assessed upon the parcels of land within Street Lighting District No. 1 in accordance with the Engineers Report is apportioned by a formula and method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each lot or parcel from the improvements to be made. 4. The City Council has considered any and all protests and objections filed with the City Clerk prior to the conclusion of the public hearing. Resolution 6831 Section 2. That the City Council hereby confirms the diagram and assessment set forth in the Engineer's Report, orders that the improvements specified in the Engineer's Report be made according to applicable law, and directs the City Clerk to file such diagram and assessment, or a certified copy thereof, with the County Auditor by not later than the third Monday in August. Section 3. That the adoption of this resolution constitutes the levying of assessments, as set forth in the Engineer's Report and Preliminary Assessment Roll, for the Fiscal Year 2018 -2019. PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 11th day of June 2018 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Mike Varipapa, Mayor ATTEST: Robin L. Roberts, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Robin L. Roberts, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 6831 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 11th day of June 2018. Robin L. Roberts, City Clerk Attachment "B" City of Seal Beach Street Lighting District NoA 2018 -2019 ENGINEERS ANNUAL LEVY REPORT ``yam r 'INTENT MEETING: APRIL 23, 2018 s PUBLIC HEARING: JUNE 11, 2018 MYPINANCIAL SERVICES W I L L D A N TABLE OF CONTENTS /. I NTRODUCTI ON .......................................................... ..............................1 A PROPOSITION 218 ...................................................... ..............................2 III. BOUNDARIES OF DISTRICT ...................................... ..............................3 IV. IMPROVEMENTS AUTHORIZED BY THE 1972 ACT . ..............................4 Y. PLANS AND SPECIFICATIONS .................................. ..............................6 K FINANCIAL ANALYSIS ............................................... ..............................7 VII. METHOD OF APPORTIONMENT OF ASSESSMENT ..............................8 VI /I. ASSESSMENT DIAGRAM AND ROLL ...................... .............................16 EXHIBITA ............................................................................. .............................17 EXHIBIT8 ............................................................................. .............................18 �W I LLDAN FINANCIAL SERVICES I. INTRODUCTION Pursuant to the order of the City Council of the City of Seal Beach and in compliance with the requirements of Article 4 of Chapter 1 of the "Landscaping and Lighting Act of 1972" (herein after referred to as the "1972 Act "), being Part 2 of Division 15, Sections 22500 through 22679 of the Streets and Highways Code of the State of California, this Report presents the engineering analysis for Fiscal Year 2018 -2019 of the district (hereinafter referred to as the "District') known as: Street Lighting District No. 1 City of Seal Beach Assessments for this District are being levied for the following: The maintenance and servicing of local street lights in close proximity to certain lots and parcels which provide a direct special benefit to such lots or parcels. The maintenance and servicing of arterial street lights which provide a special benefit to the assessable parcels within the District whether or not such parcels are in close proximity to such lights. The 1972 Act, in Section 22573, states that 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 benefits to be received by each such lot or parcel from the improvements." Details of the formula being used to spread the assessments throughout this District are found under the heading "Method of Apportionment of Assessment'. 2018/2019 City of Seal Beach Street Lighting District No. 1 Page 1 of 18 �W I LLDAN FINANCIAL SERVICES A PROPOSITION 218 In November 1996 voters of the State of California passed Proposition 218 which added Article XIIID to the California Constitution requiring new procedures for assessment districts. Article MID requires that assessments comply with stated provisions by July 1, 1997, unless an assessment district meets certain exemptions. The exemptions from the procedural and approval requirements are set forth in Section 5 of the Article and include the following: "(a) Any assessment imposed exclusively to finance the capital costs or maintenance and operation expenses for sidewalks, streets, sewers, water, flood control, drainage systems or vector control." The City of Seal Beach Street Lighting District No. 1 qualifies as an existing assessment with the District funding items that are considered exempt under provision (a) quoted above, specifically street and sidewalk improvements. Using the definitions provided by the Office of the Controller for the State of California in the Guidelines Relating to Gas Tax Expenditures published by the Division of Local Government Fiscal Affairs, street improvements include street lighting. It is the Assessment Engineer's understanding that the City has determined that the highest assessment rates used to calculate the annual assessments in years prior to the approval of Proposition 218 established the maximum assessment rates. Therefore, so long as the assessment rates do not exceed the maximum rates established prior to the passage of Proposition 218, assessment balloting is not required. 2018/2019 City of Seal Beach Street Lighting District No. 1 Page 2 of 18 �W I LLDAN FINANCIAL SERVICES / //. BOUNDARIES OF DISTRICT The boundaries of the City of Seal Beach Street Lighting District No. 1 are coterminous with the city limits of the City of Seal Beach and are shown on the map entitled Assessment Diagram, City of Seal Beach Street Lighting District No. 1. The map of the District is on file in the office of the City Clerk of the City of Seal Beach, and is available for review and public inspection and by reference is made part of the report. 2018/2019 City of Seal Beach Street Lighting District No. 1 Page 3 of 18 W I LLDAN MY FINANCIAL SERVICES /V. IMPROVEMENTS AUTHORIZED BY THE 1972 ACT As applicable or may be applicable to this proposed District, the 1972 Act defines improvements to mean one or any combination of the following: • The installation or planting of landscaping. • The installation or construction of statuary, fountains, and other ornamental structures and facilities. • The installation or construction of public lighting facilities. • The installation or construction of any facilities which are appurtenant to any of the foregoing or which are necessary or convenient for the maintenance or servicing thereof, including, but not limited to, grading, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities. • The maintenance or servicing, or both, of any of the foregoing. • The acquisition of any existing improvement otherwise authorized pursuant to this section. Incidental expenses associated with the improvements including, but not limited to: • The cost of preparation of the report, including plans, specifications, estimates, diagram, and assessment; • The costs of printing, advertising, and the publishing, posting and mailing of notices; • Compensation payable to the County for collection of assessments; • Compensation of any engineer or attorney employed to render services; Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements; • Any expenses incidental to the issuance of bonds or notes pursuant to Section 22662.5. • Costs associated with any elections held for the approval of a new or increased assessment. The 1972 Act defines "Maintain" or "maintenance" to mean furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including: 2018/2019 City of Seal Beach Street Lighting District No. 1 Page 4 of 18 WWI LLDAN FINANCIAL SERVICES • Repair, removal, or replacement of all or any part of any improvement • Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury. • The removal of trimmings, rubbish, debris, and other solid waste. • The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti. 2018/2019 City of Seal Beach Street Lighting District No. 1 Page 5 of 18 (W I LLDAN FINANCIAL SERVICES K PLANS AND SPECIFICATIONS The improvements include the maintenance and servicing of the public street lighting system within the City of Seal Beach. The City maintains Street Light Inventory Maps that show and describe the general nature, location, and extent of the street lights. These maps are on file in the office of the City Clerk where they are available for inspection and are incorporated herein by reference. Maintenance includes, but is not limited to, the removal, repair, or replacement of light standards, poles, bulbs, fixtures, appurtenances, supplies, etc. Servicing includes the furnishing of all electrical energy to the street lights. The local street lighting improvements to be maintained and serviced in Zones 1 and 2 of this District include the residential portion of the Edison -owned street lights within the boundaries of these zones. Zones 3 and 4 of this District have no local street lighting improvements to be maintained. The local street lighting improvements to be maintained and serviced in Zone 5 of this District include the non - residential portion of the Edison - owned street lights within the boundaries of this zone. The arterial street lighting improvements to be maintained and serviced by this District include Edison and City-owned street lights on the following streets and highways: Beverly Manor Road - West of Seal Beach Boulevard Bolsa Avenue - Pacific Coast Highway to Seal Beach Boulevard Electric Avenue - Marina Drive to Seal Beach Boulevard First Street - Pacific Coast Highway to Ocean Avenue Lampson Avenue - Seal Beach Boulevard to East City Limit Main Street - Pacific Coast Highway to Ocean Avenue Marina Drive - West City Limit to Pacific Coast Highway Ocean Avenue - First Street to Seal Beach Boulevard Old Ranch Parkway - Seal Beach Boulevard to the 22 Freeway Pacific Coast Highway - West City Limit to East City Limit Seal Beach Boulevard - North City Limit to Ocean Avenue Westminster Avenue — West City Limit to East City Limit Bixby Old Ranch Town Center — Seal Beach Boulevard from 405 to Lampson Seal Beach Boulevard — At Heron Point/Forrestal Lane Old Bolsa Chica Road — East Side Fronting Bolsa Storage Facility Property 2018/2019 City of Seal Beach Street Lighting District No. 1 Page 6 of 18 W I LLDAN V/. FINANCIAL ANALYSIS The costs of providing the services that are to be funded by the District were estimated by the City in connection with the Fiscal Year 2018 -2019 City budget. The following table details the District's estimated budget for Fiscal Year 2018 -2019, as well as, shows the Fiscal Year 2018 -2019 Assessment Budget and how the local lighting benefit is apportioned to each zone within the District: itimated Cost of Maintenance and Servicing Servicing Costs (Utilities) $186,800 Assessment Engineer 9,600 City Administration 0 City Attorney 0 For Fiscal Year 2018 -2019 $196,400.001 :venue for Fiscal Year 2018 -2019 Reserve Fund Contribution /(Usage) General Fund Contribution 54, Total Assessments for Fiscal Year 2018 -2019 141, Revenue $1 ation to Zones al Street Lighting Benefit $57,751 Street Lighting Benefit 1 57,465.31 2 19,039.86 5 7,341.65 ubtotal Local Street Lighting Benefit Assessment $141,606.401 Balance information ated Beginning Reserve Fund Balance July 1, 2018 $0.00 ve Fund Contribution/(Usage) $0.00 ted Ending Reserve Fund Balance June 30, 2019 $0.00 2018/2019 City of Seal Beach Street Lighting District No. 1 Page 7 of 18 �W I LLDAN FINANCIAL SERVICES V//. METHOD OF APPORTIONMENT OF ASSESSMENT Section 22573 of the 1972 Act provides that assessments may be apportioned by any formula or method which fairly distributes the net amount to be assessed among all assessable lots or parcels within the District in proportion to the estimated benefits received by each such lot or parcel from the improvements. The 1972 Act also permits the classification of various areas within the District into different zones where, by reason of variations in the nature, location and extent of the improvements, the various areas will receive differing degrees of benefit from the improvements. A zone shall consist of all territory that will receive substantially the same degree of benefit from the improvements. All lots and parcels within the District boundaries, with the exception of utility operating rights -of -way and public property, will be assessed. The proposed method of apportionment of assessment for Local Street Lighting Benefits and Arterial Street Lighting Benefits is described below: LOCAL STREET LIGHTING BENEFITS (FOR STREET LIGHTS IN CLOSE PROXIMITY TO LOTS AND PARCELS) Maintenance and servicing of certain street lights along the streets and highways in close proximity to certain lots or parcels provides a special benefit to such lots or parcels for the following reasons: Such street lights, by virtue of the illumination they provide, improve security of such lots or parcels. • Such street lights improve ingress to and egress from such lots or parcels by illuminating access after sunset, and by so improving ingress and egress, further improve the security of such lots or parcels by improving the nighttime visibility of such lots or parcels and the access of emergency vehicles thereto. • Also, in the case of commercial lots or parcels, such street lights, by improving ingress and egress, facilitate the opening and operation of businesses used after sunset. 2018/2019 City of Seal Beach Street Lighting District No. 1 Page 8 of 18 WIINANCIAL I LLDA�N The assessment formula recognizes that benefits received from street lights are based on the following criteria: A. TRAFFIC CIRCULATION Improved ingress to and egress from lots or parcels within the District. Improved ingress to and egress from commercial lots or parcels and a corresponding promotion of business during nighttime hours. B. SECURITY Increased illumination after sunset and a corresponding reduction in vandalism and other criminal acts and damage to improvements. Increased illumination after sunset and a corresponding improvement to the access of emergency vehicles to such lots or parcels. Increased illumination after sunset and a corresponding reduction in illegal dumping on vacant land. C. INTENSITY Intensity or degree of illumination provided on adjacent streets varies with the type of street and the use of the adjacent property. The basic unit for this formula is the single - family residence with the traffic circulation benefits being assigned one -half unit and security and intensity benefits being assigned one - quarter unit each, for a total of one unit. Multi- family residential, condominium and townhouse parcels are assigned the following declining scale of fractional traffic circulation benefit units: one -half unit per dwelling unit for the first 20, one -third unit for the 21st through 50th, one - fourth unit for the 51st through 100th, and one -fifth unit for each dwelling over 100. For multi - family residential, condominium and townhouse parcels, security and intensity benefits are assigned '/+ -unit for each dwelling unit. However, figuring any dwelling units over four would be set back sufficiently far from the lighted street that they received minimal security and intensity benefit per unit, a maximum value of one unit each for security and intensity is assigned. Exhibit A provides examples of the direct assessment for local street lighting per parcel. 2018/2019 City of Seal Beach Street Lighting District No. 1 Page 9 of 18 W I LLDAN MV FINANCIAL SERVICES For purposes of the local lighting benefits, the lots or parcels have been divided into the following zones: LOCAL LIGHTING ASSESSMENT METHODOLOGY BY ZONE Zone 1 Under the proposed formula, all single - family residences within Zone 1 will be assessed the same amount. Multiple - family residential and condominium parcels with an equal number of dwelling units will be assessed equal amounts. There are certain condominiums and apartment complexes in Zone 1 that lie on large contiguous parcels. For these parcels, the combined parcels' total assessment is computed, and then evenly distributed among the units on such parcels. In no case will the assessment for a dwelling unit on a multiple - family parcel exceed that of a single - family residence. The local benefit assessment per unit in Zone 1 is determined to be a maximum of $17.71. Exception: Because of the distance between the nearest street lights and the condominium units at Montecito, such parcels receive insignificant benefit from such lights and are therefore not assessed for local street lighting benefits. Zone 2 Under the proposed formula, all single - family residences within Zone 2 will be assessed the same amount. Multiple - family residential and condominium parcels with an equal number of dwelling units will be assessed equal amounts. There are certain condominiums and apartment complexes in Zone 2 that lie on large contiguous parcels. For these parcels, the combined parcels' total assessment is computed, and then evenly 2018/2019 City of Seal Beach Street Lighting District No. 1 Page 10 of 18 W I LLDAN IMM FINANCIAL SERVICES distributed among the units on such parcels. In no case will the assessment for a dwelling unit on a multiple - family parcel exceed that of a single - family residence. The local benefit assessment per unit in Zone 2 is determined to be a maximum of $7.11. There are certain parcels within Zone 2 on residential zoned lots or parcels that are being used for non - residential uses. These parcels were assigned comparable units on the basis of whether they had nominal, moderate, or high intensity, traffic circulation, and security benefits. Because the intensity of the street lights in Zone 2 is the same regardless of how a parcel is used, the intensity benefits determined for these non- residential parcels are equivalent to those assigned to a single - family residential parcel. Because of greater traffic generated by non - residential uses, those parcels determined to have nominal, moderate and high traffic circulation benefits were assessed two, four, and eight times, respectively, that of an equivalent single - family residential parcel. Because parcels with non - residential uses generally require and therefore benefit more from increased security due to the greater value of improvements on such parcels, such parcels determined to have nominal, moderate, and high security benefits were assessed two, four, and eight times, respectively, that of an equivalent single - family residential parcel. Exception: Because of the distance between the local street lights that benefit the Seal Beach Shores Mobile Home Park and the individual dwelling units within the park, the mobile home park is not assessed as a multi - family parcel. However, the Seal Beach Shores Mobile Home Park has been determined to receive some local lighting benefits which are equivalent to 3.25 units, the benefiting parcel's unit distribution defined in Subsection C below. Single unit mobile home parcels are not assessed for local lighting benefits due to their considerable distance from local streets. Each of the parcels in Zone 2 being used for non - residential use is determined to be in one of the following categories: A. Commercial Parking Lots, Churches - 1.75 units based on intensity (.25 units), nominal traffic circulation (1 unit) and nominal security benefit (.50 units). B. Professional or Office Buildings, Service Shops - 2.25 units based on intensity (.25 units), nominal traffic circulation (1 unit) and moderate security benefit (1 unit). C. Store with Residence - 3.25 units based on intensity (.25 units), moderate traffic circulation (2 units) and moderate security benefit (1 unit). D. Hotels/Motels - 6.25 units based on intensity (25 units), high traffic circulation (4 units) and high security benefit (2 units). 2018/2019 City of Seal Beach Street Lighting District No. 1 Page 11 of 18 W I LLDAN FINANCIAL SERVICES Zones 3 and 4 The local street lighting system within these zones is privately owned and is not the responsibility of the City of Seal Beach, the parcels in Zones 3 and 4 are not assessed for local street lighting. Zone 5 Since the size of the parcels within Zone 5 (zoned non - residential) varies considerably, it would not be equitable to determine that each parcel received a similar local street lighting benefit from the maintenance and servicing of street lights in close proximity to the lots or parcels. Therefore, the formula proposed for spreading the cost of local street lighting assessments in Zone 5 is based on the front footage of each lot or parcel on a street that provides local street lighting for that parcel. The local benefit assessment per unit in Zone 5 is determined to be a maximum of $.15 per front foot. Exceptions: Any non - residential zoned parcel within the Leisure World complex and the Surfside Community are not assigned any local street lighting benefits because the local street lighting system within these zones is privately owned and not the responsibility of the City of Seal Beach. Zone 6 Zone 6 is the District classification for all non - assessed parcels in the District, including all federal, state, county and city owned parcels, which are exempt from the assessment, as well as any privately owned parcels that are determined to receive no benefit from the District improvements. ARTERIAL STREET LIGHTING BENEFIT (FOR STREET LIGHTS ON ARTERIAL STREETS) Zones 1 through 4 The maintenance and servicing of street lights on arterial streets and highways, previously named in this report and within the District, provides a special benefit which is received by each and every assessable lot or parcel within the District, tending to enhance their value for the following reasons. Each of the streets listed is a major arterial street which improves access to all lots or parcels throughout the District. Such street lights improve ingress to and egress from such lots or parcels by illuminating access after sunset. Arterial street lights create a city -wide lighting system that provides traffic circulation benefits. While local street lighting benefits properties adjacent to the lighting, arterial street lighting benefits traffic circulation to and from all parcels city -wide. Therefore, the formula proposed for spreading the arterial street lighting benefit is based on the traffic circulation benefits for each lot or parcel with the basic unit being the single - family residence assigned a traffic circulation unit of 1. The arterial benefit assessment per unit is determined to be a maximum of $4.15. 2018/2019 City of Seal Beach Street Lighting District No. 1 Page 12 of 18 �W I LLDAN FINANCIAL SERVICES Typically, fewer people live on multi - family parcels on a per unit basis than on a single - family parcel. Therefore, the benefit received by multi - family parcels, per unit, from arterial street lights is less than single - family parcels. Multi- family residential, condominium and townhouse parcels are assigned the following declining scale of fractional benefit units, similar to those assigned above for local benefit street lighting: one -half unit per dwelling for the first 20, one -third unit per dwelling for the 21st through 50th, one - quarter unit per dwelling for the 51st through 100th, and one -fifth unit for each dwelling over 100. There are certain condominiums and apartment complexes that lie on large contiguous parcels. For these parcels, the combined parcel's total assessment is computed, and then evenly distributed among the units on such parcels. Within the Leisure World Community there are both residential cooperative and condominiums. Because Leisure World exists as a community, each condominium and each cooperative benefits the same as any other condominium and cooperative, respectively, in Leisure World. The benefit units are computed as if all the condominiums lie on one "parcel" and all the cooperative units lie on one "parcel," then the computed benefit units are evenly distributed to the individual condominium or cooperative units. There are also certain private recreational facilities within Leisure World (Zone 3), such as libraries and clubhouses, which are accessible only by the Leisure World residents. Such facilities are assumed to receive no arterial benefit and therefore are not assessed. Zone 5 Non - residential parcels were assigned comparable units on the basis of whether they had nominal, moderate or high traffic circulation benefits and whether their operations were primarily daytime, nighttime or a combination. Furthermore, the non - residential parcels were compared to the single - family residential parcels to determine the traffic circulation benefit for the nominal, moderate, and high classifications of non - residential uses. Each non - residential parcel was determined to be in one of the following categories: Nominal - Daytime Use Only (ND) • Office Buildings • Professional Buildings • Auto Repair Shops • Churches • Nurseries • Commercial and Industrial Parking Lots 2018/2019 City of Seal Beach Street Lighting District No. 1 Page 13 of 18 �W I LLDAN FINANCIAL SEPVICES Moderate - Daytime Use Only (MD) • Banks • Savings and Loans • Stores High - Daytime Use Only (HD) Restaurants (not open in evenings) Nominal - Day and Night Use (NN) • Commercial Parking Lots (if used in conjunction with nighttime establishments) Moderate - Day and Night Use (MN) • Service Stations • Recreational Vehicle Facilities • Clubs and Lodge Halls • Markets • Theaters • Motels • Shopping Centers including Parking Lots High - Day and Night Use (HN) • Restaurants (open in evenings) • Hospitals • Convalescent Homes • Amusement Facilities DAYTIME USE ONLY Non - residential land uses classified as Nominal- Daytime Use Only (ND) were only found to benefit from the lighting improvements slightly less than the single - family parcels as the majority of the traffic circulation occurs during daylight hours. Therefore, ND traffic circulation benefits for non - residential lots or parcels are two- thirds that of a single - family residential lot or parcel. Moderate and High - Daytime Use Only (MD and HD, respectively) traffic circulation land uses benefit more from the lighting improvements because of their increased opportunity to use nighttime lighting and are assigned one and one -third that of a single - family residential lot or parcel and two times that of a single - family residential lot or parcel, respectively. As such, those lots or parcels determined to have nominal, moderate or high traffic circulation benefits as well as daytime operation (ND, MD, HD) were assessed two- thirds, one and one - third, and two times, respectively, that of an equivalent single - family residential lot or parcel. 2018/2019 City of Seal Beach Street Lighting District No. 1 Page 14 of 18 V FINANCIAL W I LLDArN DAY AND NIGHT USE Because of the substantially greater benefit of uses which have nighttime traffic circulation, non - residential lots or parcels categorized as Nominal -Day and Night Use (NN) are two times that of a single - family residential or lot parcel, Moderate -Day and Night Use (MN) traffic circulation benefits are four times that of a single - family residential lot or parcel and High -Day and Night Use (HN) nighttime traffic circulation benefits are six times that of a single - family residential lot or parcel. Therefore, those parcels determined to have nominal, moderate or high traffic circulation benefits as well as nighttime operation (NN, MN, HN) were assessed two, four, and six times, respectively, that of an equivalent single - family residential lot or parcel. Since the sizes of the non - residential lots or parcels vary considerably, it was determined that the area of each non - residential lot or parcel would also be used in determining the benefit received by each parcel. For this purpose, the size of an average single - family lot or parcel was determined to be 5,000 square feet. Consequently, the benefit received by each non - residential lot or parcel is computed as follows: Nominal - Daytime Use Only (ND) 0.67 units per 5,000 ft2 of lot or parcel area Moderate - Daytime Use Only (MD) 1.33 units per 5,000 ft2 of lot or parcel area High - Daytime Use Only (HD) 2.00 units per 5,000 ft2 of lot or parcel area Nominal - Day and Night Use (NN) 2.00 units per 5,000 ft2 of lot or parcel area Moderate - Day and Night Use (MN) 4.00 units per 5,000 ft2 of lot or parcel area High - Day and Night Use (HN) 6.00 units per 5,000 ft2 of lot or parcel area 2018/2019 City of Seal Beach Street Lighting District No. 1 Page 15 of 18 V111. ASSESSMENT DIAGRAM AND ROLL The Boundary Map and Diagram showing the boundaries of the District and Zones of benefit is on file in the offices of the City Engineer and the City Clerk of the City of Seal Beach where it is available for public inspection and is incorporated herein by reference. For details of the lines and dimensions of the parcels within the District (City), reference is made to the Orange County Assessor's Parcel Maps for Fiscal Year 2018 -2019, which are also incorporated herein by reference. See the Assessment Roll (Exhibit B) also on file in the offices of the City Engineer and the City Clerk, for assessments to individual parcels for Fiscal Year 2018 -2019. For a description of the lots or parcels in the District, reference is made to the Orange County Assessment Roll, which is incorporated herein by reference. In conclusion, it is my opinion that the assessments for Seal Beach Street Lighting District No. 1 have been apportioned in direct accordance with the benefits that each parcel receives from the improvements. Willdan Financial Services Assessment Engineer G Ri and L. Kopecky, P. CE167 C 16742 ©tP ([� Clo- �P �OF CA��F�/ W I LLDAN V)VA FINANCIAL SERVICES EXHIBIT A EXAMPLES OF ASSESSMENT BY LAND USE AND ZONE Examples of Assessment by Land Use and Zone for the District follow: 2018/2019 City of Seal Beach Street Lighting District No. 1 Page 17 of 18 EXHIBIT B ASSESSMENT ROLL �W I LLDAN FIN�NCIAL SERVICES The assessed parcels and assessments are listed by their corresponding assessment numbers in the following Assessment Roll. 2018/2019 City of Seal Beach Street Lighting District No. 1 Page 18 of 18 Attachment "C 12 -29 City of Seal Beach Street Lighting District No. 1 Assessment Roll Fiscal Year 2018/2019 -. 2.66. 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