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Staff Report

Corona City Council
June 5, 2024

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Staff Report
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June 5, 2024
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Corona City Council
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Text extracted from the city's file for reading and search. Open the original on corona.legistar1.com. That file is the official record.

City of Corona
Staff Report
400 S. Vicentia Ave.

Corona, CA 92882
File #: 24-0437

REQUEST FOR CITY COUNCIL ACTION
DATE: 06/05/2024
TO: Honorable Mayor and City Council Members
FROM: Finance Department
SUBJECT:

PUBLIC HEARING CONFIRMING THE DIAGRAM AND ASSESSMENT FOR LIGHTING MAINTENANCE DISTRICT NO. 2003-1 FOR FISCAL YEAR 2025
EXECUTIVE SUMMARY:

This staff report asks the City Council to adopt Resolution No. 2024-036. Adoption of the recommended resolution is the last step of the annual proceedings for the levy and collection of the special assessment for Lighting Maintenance District No. 2003-1 for Fiscal Year 2025. The City Council will conduct a public hearing to give all interested parties an opportunity to make verbal or written comments on the proposed annual assessment.

At the conclusion of the hearing, it is recommended that the City Council adopt the said resolution confirming the diagram and assessments for the District for Fiscal Year 2025, which will constitute the levy of the assessment for the maintenance and servicing of public lighting facilities within the District, in accordance with the Streets and Highways Code.

RECOMMENDED ACTION:

That the City Council adopt Resolution No. 2024-036, confirming the diagram and assessment for Lighting Maintenance District No. 2003-1 for Fiscal Year 2025.

BACKGROUND & HISTORY:

Lighting Maintenance District (LMD) 2003-1 was established in 2003 in accordance with the provisions of the Landscaping and Lighting Act of 1972 (the "1972 Act"). The purpose of the District is to provide lighting, maintenance and operating services for the streetlights, traffic signals, and related appurtenances within the District's boundaries.

The annual assessments proposed to be levied within the District will pay for the maintenance services during Fiscal Year 2025. The services provided include all necessary operations, administration, capital replacements, and maintenance required to keep the above-mentioned City of Corona Page 1 of 3 Printed on 5/15/2024
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File #: 24-0437
administration, capital replacements, and maintenance required to keep the above-mentioned improvements in a healthy and satisfactory working condition.

ANALYSIS:

The State of California Street and Highways Code Section 22500 requires an annual review of the assessments levied by the assessment districts formed under the 1972 Act. To levy and collect special assessments within such districts, an Engineer's Report must be prepared, which provides details on the improvements that are maintained and the estimated budgets for each district.

On April 17, 2024, the City Council adopted Resolution No. 2024-017, to initiate the proceedings to levy and collect assessments for the District for Fiscal Year 2025, appointed Spicer Consulting Group, LLC as the engineer of record, and ordered the preparation of an Engineer's Report for the District.

On May 1, 2024, the City Council adopted Resolution No. 2024-019, to declare the City’s intention to levy and collect assessments within the District for Fiscal Year 2025, approve the preliminary Engineer’s Report (the “Preliminary Report”), and provide a notice of public hearing to consider the proposed assessments. A notice of public hearing was published in the local newspaper on May 10, 2024.

Attached is the final Engineer’s Report (the “Report”) for the District, which is consistent with the Preliminary Report. The Report includes a detailed description of the existing improvements within the District, the estimated maintenance costs, the method of assessment apportionment for each lot or parcel within the District boundaries, and a diagram showing the boundaries of the District. The Report also provides an analysis of the District’s financial status.

FINANCIAL IMPACT:

The cost of construction, installation, operation, servicing, and maintenance of the District will be funded by the assessments levied and collected within the District. For Fiscal Year 2025, it is projected that the assessment revenues will be sufficient to cover the operating costs for the District during the same fiscal period. The estimated surplus will be added to the capital reserve for future capital improvements within the District.

Below is an overview of the District’s estimated assessment revenues and proposed expenditures for Fiscal Year 2025. Detailed information can be found in the attached Report.

Estimated
Costs
Estimated
Assessment
Revenue
General Benefit
Contribution (1)
Estimated
Excess/(Deficit)
Actual Assessment
YOY % Change
$133,629.00 $127,247.09 $10,619.62 $4,237.71 0.00%
1) Benefit received by non-residents of the District for the major/arterial streetlights, traffic signals, traffic control devices and landscape improvements.

This amount is contributed by the City’s General Fund.

ENVIRONMENTAL ANALYSIS:

This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the common sense exemption that CEQA applies only to projects that have the potential City of Corona Page 2 of 3 Printed on 5/15/2024
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File #: 24-0437
covered by the common sense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action merely declares the City's intent to levy and collect assessments within the District for Fiscal Year 2025, and there is no possibility that adopting the resolution will have a significant effect on the environment. Therefore, no environmental analysis is required.

PREPARED BY: ERMA MONTANO, SENIOR FINANCIAL ANALYST
REVIEWED BY: KIM SITTON, FINANCE DIRECTOR
Attachments:

1. Exhibit 1 - FY 2025 LMD 2003-1 Engineer’s Report

2. Exhibit 2 - Resolution No. 2024-036
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