To: MAYOR AND CITY COUNCIL
From: TED SEMAAN, PUBLIC WORKS DIRECTOR
TITLE
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APPROVE THE CITY ENGINEER’S REPORT FOR THE 2020-2021 FISCAL YEAR STREET LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
ADOPT BY TITLE ONLY RESOLUTION NO. CC-2005-029, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, DECLARING ITS INTENTION TO ORDER THE MAINTENANCE AND IMPROVEMENTS OF CERTAIN STREET LIGHTING FIXTURES, APPURTENANCES, AND LANDSCAPED AREAS FOR THE FISCAL YEAR COMMENCING JULY 1, 2020 AND ENDING JUNE 30, 2021, AND SETTING A TIME AND PLACE FOR THE PUBLIC PROTEST HEARING
SET JUNE 2, 2020 AS THE DATE TO CONDUCT A PUBLIC HEARING TO CONSIDER THE PROPOSED 2020-2021 FISCAL YEAR STREET LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
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EXECUTIVE SUMMARY
The 1972 Landscaping and Lighting Act requires cities to prepare an engineer’s report and conduct a public hearing before levying annual landscaping and lighting assessment district fees. On April 7, 2020 the City Council directed the City Engineer to prepare the report of the anticipated expenses and assessment proposal for the City’s Street Landscaping and Lighting Assessment District (District) for the 2020-21 Fiscal Year. The Engineer’s Report (see attached) includes a summary of the District’s boundaries, its proposed revenues and expenditures and the services funded by the assessment. According to the report a general fund subsidy of $977,767 will be required in the 2020-21 FY to cover all District costs.
BACKGROUND
On April 7, 2020, the Mayor and the City Council adopted Resolution No. CC-2004-022 and ordered a report from the City Engineer for the 2021-21 fiscal year activities of the Street Landscaping and Lighting Assessment District. The report includes an assessment diagram, system plans and specifications, and cost estimates for furnishing electrical energy, maintenance, and improvements for all public lighting facilities and landscaped public areas included in the District. The report is attached and a copy of the District map is available for review at the Engineering Services counter at City Hall.
The District was formed in 1983 under the requirements of the 1972 Landscaping and Lighting Act. The District operates and maintains the following public improvements: 5,127 Street Lights (3,228 of which are owned and operated by Southern California Edison and 1,899 of which are owned and operated by the City); 102 Signals (55 Traffic, 23 Flashing Yellow Beacon and 24 Flashing Red Beacon); and 21.85 Acres of Landscaping. Whether or not there is a proposed change to the annual fee, the Act requires that a public hearing be held before implementing each year’s District assessment. Staff recommends that the City Council approve the Resolution declaring the intention to order the FY2020-21 assessment and set a public hearing for June 2, 2020 for consideration of final approval.
A typical home in Redondo Beach with a frontage of 40 feet pays approximately $59.20 a year for street landscaping and lighting under the District’s assessment methodology. This has not changed since 1991. The District in the FY2020-21 is projected to run a $977,767 deficit that must be offset by a subsidy from the General Fund. Estimated costs for FY2020-21 are based on projected actual expenses for FY2019-20. The FY2020-21 anticipated deficit is $14,330 less than what was anticipated in the FY2019-20 engineer’s report. This is due to $45,800 savings in personnel costs, an $21,557 increase in internal service charges, an $87 savings in supplies and operations and a $10,000 reduction in miscellaneous revenues.
To address the deficit, the City Council may consider initiating the process to increase the assessment. In 2006, the City sought voter approval under Proposition 218 to adjust the assessment to pay for all District related costs, but was unsuccessful. During the FY 2017-18 budget adoption discussions, the City Council deliberated on this, but ultimately decided to leave the assessment unchanged.
If the City Council chooses to proceed with a supplemental assessment, the following steps are anticipated. After solicitation, a professional services contract would be awarded by the City Council to an engineering consultant to prepare a detailed engineering report that outlines the total cost of the needed improvements and services, the list of parcels to be assessed, the proportionate special benefits to each parcel and the amount of the assessment for each parcel. City Council would be presented with that report and choose if and when to set a public hearing date to levy the assessment. Notice of the public hearing and ballots would then be mailed, no less than 45 days prior to the public hearing, to record property owners for each parcel to be assessed. Ballots must be returned prior to the close of the public hearing and are tabulated only after the public hearing is closed. If the yes votes weighted by the assessment amount are greater than the no votes received (similarly weighted), the City Council may levy the assessment as outlined in the engineer’s report for the following fiscal year. For example, if so directed, the consultant contract could be awarded in Summer 2020, the engineer’s report prepared in Fall 2020, with ballots mailed in early 2021, followed by a public hearing and determination of the vote in Spring 2021, in time for assessment during FY2021-22.
Regardless of what City Council chooses to do about a supplemental assessment in following years, adoption of the staff recommendations is required to continue the current assessment for FY2020-21.
COORDINATION
The attached resolution has been reviewed and approved as to form by the City Attorney’s Office. Revenue and expense figures for the Engineer’s Report have been prepared by Public Works staff and verified by the Financial Services Department.
FISCAL IMPACT
Expected funding and expenditures for the 2020-2021 FY are as follows:
FY 20-21 Funding FY 20-21 Expenditures
Assessment Fee 1,513,000 Personnel 951,899
Public Services Lighting Fee 30,000 M & O 1,293,956
Other Revenues 15,600 Overhead/Internal Svc Chg 290,512
General Fund Subsidy 977,767
Total Funding 2,536,367 Total Expenditures 2,536,367
APPROVED BY:
Joe Hoefgen, City Manager
ATTACHMENTS
1. CITY ENGINEER’S REPORT FOR THE FISCAL YEAR 2020-21 STREET LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
2. RESO 2005-029 LANDSCAPE & LIGHTING ACT