Item No.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: OFFICE OF THE CITY MANAGER
BY: MATTHEW BAUMGARDNER, DIRECTOR OF PUBLIC WORKS/CITY
ENGINEER
DATE: APRIL 9, 2024
SUBJECT: NEW RESIDENTIAL STREET LIGHTING INSTALLATION PROGRAM
EXECUTIVE SUMMARY
The City Council will consider receiving and filing an update on the City’s Residential Street Lighting Program. Previously, the City established program through its Lighting and Landscaping Assessment District, LLAD 121. Through this program, property owners can petition to have street lights placed on their streets (Attachment A). However, the capital costs of purchasing and installing these street lights are shared equally with all property owners. Due to the lack of success of the prior program, the City Council provide Direction to staff to create a pilot City paid streetlight installation program. Through the adoption of the Fiscal Year 2023-2024 Budget, the City Council provided funding for the City to cover the initial capital cost of installing the street lights on residential streets with an appropriation up to a maximum about of $50,000, when there is majority support from a Downey neighborhood.
RECOMMENDATION
That the City Council:
Receive and file a report on the new City paid Residential Street Lighting Program pilot program, and authorize staff to begin soliciting the program.
BACKGROUND
In 1978, the City Council adopted Lighting and Landscaping Assessment District (LLAD) 121. The funds collected through this district are assessed annually on property tax bills to cover the costs related to operations and maintenance of street lighting, traffic signals, and street landscaping. Currently, residents can petition the City to have street lights placed on their streets. Staff prepares a petition to be circulated among the property owners on that street block with information regarding annexation into the LLAD and costs that will be assessed annually for installation and ongoing operation and maintenance of the lights. At least two-thirds of the property owners must sign the petition to demonstrate the necessary level of support for the proposal. While the City receives requests to add street lighting on residential streets, the initial costs for installing lights of up to $5,000 per property have been a barrier to achieving the necessary level of support to annex the street block into the LLAD. The initial capital cost of $5,000 per property is covered by
NEW RESIDENTIAL STREET LIGHTING INSTALLATION PROGRAM
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funds set aside each year in the LLAD budget and then assessed over a five-year period.
The annual cost of streetlight maintenance of $21.41 would be also assessed for each property added to the district in perpetuity.
In addition to the process for petitioning to be annexed into the LLAD, street lights can be added to existing Edison utility poles. If a utility pole exists on the residential street, a service request can be submitted through the Public Works engineering division. Staff will then reach out to SCE and request that a light be added to the utility pole. There is an approximate cost of $500 to add the light, which is covered through the Public Works engineering budget.
ANALYSIS
As part of the Fiscal Year 2023-2024 budget, the City Council authorized staff to create a pilot program to cover the initial capital costs of installing street lighting on a residential street. Staff estimates that between the initial appropriation of $50,000 for the pilot program plus funds set aside in the LLAD budget, approximately four street blocks could add street lighting. Property owners would go through the same process outlined in the City’s existing program, as each owner would need to understand that they are responsible for the annual costs associated with the street lighting in perpetuity. However, the initial installation cost would be borne by the City, not the property owners. The $50,000 would be provided on a first come first served basis each fiscal year until funds are extinguished. Any unfulfilled need would be added to the next fiscal year’s work plan.
Existing Process to Petition for Residential Street Lighting The process involves making a request to the Public Works engineering division to add lights to the residential street block. Staff reviews the request and determines the number of lights that need to be placed on the street. Typically, spacing for street lights is every 150 feet and is alternated between each side of the street. A cost is determined for adding the street lights and staff prepares a petition that is circulated among the property owners on that street block. The petition explains that property owners are responsible for the cost of adding the street lights and the annual costs for maintaining them. A two-thirds majority approving the addition of street lights must be received in order for the petition to move forward. Funds are set aside in the LLAD budget to cover the initial costs of installing the lights. If a successful petition moves forward, the street is annexed into the LLAD and the approximate cost of $5,000 is assessed to the property tax bill and paid off over a five-year period. The annual cost of $21.41 to maintain and operate the lights is assessed on the property tax bill in perpetuity.
In 2021, staff set up a City email account where residents could submit their requests to add street lighting. A cost estimate of $2,500,000 was developed to add lights on 22 street blocks where there was interest. A capital project was established (CIP 23-05) where LLAD funds are set aside for street lighting financing under the City’s existing program.
However, as mentioned previously, the barrier to acceptance during the petition process has not resulted in moving forward with the installation of lights.
Residential Street Lighting Program
As part of the Fiscal Year 2023-2024 budget, the City Council provided funding for a new program to cover the cost of adding residential street lights. The process to add lighting
NEW RESIDENTIAL STREET LIGHTING INSTALLATION PROGRAM
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through this new program would be the same as the existing program, with the exception that the initial costs for installing the lights would not be passed on to the property owners.
The streets would sill be annexed into the LLAD and property owners would be responsible for paying for the annual costs for operation and maintenance in perpetuity.
For this reason, a two-thirds majority is still required among the property owners to demonstrate their understanding of the financial responsibility for the operation and maintenance costs. An initial appropriation of $50,000 was set aside for this program and there are additional funds set aside in the LLAD to help start the program. Up to four street blocks could have lights added through this program in the next year. Staff would review the requests in the order they were received, with preference given to streets with no lighting. Using the cost estimate of $2,500,000 developed by staff in 2021, the City could program the addition of street lights over those 22 blocks over a period of time.
Based on the existing LLAD budget, it would take approximately 10 years to install lights on those streets.
Staff will prepare an advertisement for the program and release through social media, the City’s website, and flyers made available at City Hall, the Downey Library, the back of Council Chambers, and at City parks. Flyers can also be sent out as part of utility billing to get the word out broadly. By advertising the street lighting pilot program, staff can assess the demand for street lighting throughout the City and come up with an annual cost over time to add lights on residential streets Citywide. Design and installation of the streetlights for the initial streets that successfully receive a two-thirds approval for the petition would be completed in FY 2024-2025.
CITY COUNCIL PRIORITIES
Quality of Life, Safety & Infrastructure
FISCAL IMPACT
There is no fiscal impact.
ATTACHMENTS
Attachment A: City of Downey Street Lighting Assessment District Fact Sheet
DOWNEYCA.ORG CITYOFDOWNEY CITYOFDOWNEY CITYOFDOWNEY About the Project
In 1978, the City of Downey City Council adopted Lighting and Landscaping Assessment District (AD) 121. This assessment district funds improvements and associated operating and maintenance costs related to street lighting, traffic signals and street landscaping. Property owners may petition to apply for new street lights to be placed on their street. The costs of these street lights will be shared equally with all property owners on their street as part of their property tax bill.
THE 411 ON THE CITY OF
DOWNEY’S STREET LIGHTING
ASSESSMENT DISTRICT
WHAT IS THE AVERAGE COST OF STREET
LIGHTS FOR A PROPERTY OWNER?
The average design and construction costs for new streetlight installations is approximately $5,000 per home. The typical property owner would pay this back to the City in annual installments of roughly $1,000 per year through property taxes. After the initial design and construction costs are paid, property owners would pay $21.41 per year on an on-going basis as their pro-rata share of the City's street lighting operating and maintenance costs.
WHO IS RESPONSIBLE FOR
INSTALLATION COSTS OF
STREET LIGHTS?
The PROPERTY OWNER IS
RESPONSIBLE for installation costs
of street lights. The City can finance
the installation costs with the
property owners paying back the
City for up to five years through
annual assessments paid through
the owners’ property tax bills.
WHAT ARE THE BENEFITS
OF STREET LIGHTS?
There are MANY BENEFITS to
street lights, including:
· Enhanced safety for motorists,
riders and pedestrians due to
increased visibility of roadway
signs and obstructions
· Prevention of crime and
facilitating law enforcement and
police protection
· Inspiration for community spirit
and growth
Frequently Asked Questions
WHAT IS THE STREET LIGHTING ASSESSMENT
DISTRICT AND WHAT DOES IT FUND?
Street lighting assessment districts cover a portion of the cost of street lighting improvements as well as the City’s costs for operating and maintaining street lights. This assessment is not a tax and is not based on the value of your property.
Rather, it is based on the proportional benefit that your property receives from street lights, traffic signals and street landscaping.
You and all other property owners within the City are currently assessed a portion of operating and maintenance costs for the City’s traffic signals and street landscaping on an annual basis through your property tax bills.
These assessments appear on your annual property tax bill as “CITY LT ZN 3” and “CITY LT ZN L,” respectively. Once a petition for new street lighting is circulated on your street block and approved, you and other property owners on your block will be annexed into Zone 1 of the assessment district in addition to Zones 3 and L in which case “CITY LT ZN 1” will begin appearing on your property tax bill.
ATTACHMENT A
HOW DO I FILL OUT A PETITION TO
REQUEST A NEW STREET LIGHT IN
MY NEIGHBORHOOD?
STEP 1: Contact the City of Downey Engineering Division at (562) 904-7110 or submit a residential service request at www.downeyca.org . Please include your name, address, email, phone number and name of the street and limits of street block(s) where you would like the street lights to be installed.
STEP 2: Once the City receives this information, the City will prepare a petition for circulation among the properties on the requested street block(s). The petition will include all property owners’ names and addresses along with a statement to be conveyed to the property owners that by signing the petition, the owners agree that they: (1) will be annexed into Zone 1 of the assessment district and (2) will be responsible for their pro-rata share of the cost of installing as well as on-going maintenance and operations costs of street lights.
STEP 3: You will be asked to circulate the petition among the property owners (not renters) listed on the petition. At least two-thirds (67%) of the property owners must sign the petition to demonstrate the necessary level of support for the proposal. The original, completed petition must be returned to the City of Downey Engineering Division at 11111 Brookshire Ave., Downey, CA 90241.
STEP 4: The City will verify the property owners’ signatures. If at least 67% of the supporting signatures are verified, funds will be budgeted and street light design process will begin.
STEP 5: The property owners will be responsible for paying their prorated share of the up-front design and installation costs.
STEP 6: Upon completion of design phase, the street lighting system will be installed.
STEP 7: Special assessment will show up on the property owner’s annual property taxes once the owner’s property is officially annexed into the assessment district. The assessment will appear on the property tax bill as "CITY LT ZN 1.”
HOW ARE STREET
LIGHTS PAID FOR?
THE COSTS FOR MAINTAINING AND SERVICING
STREET LIGHTS ARE PAID FROM:
Assessments on individual parcels through
Lighting and Landscaping Assessment District 121,
and revenues from general property taxes.
HOW MANY STREET
LIGHTS ARE IN OUR CITY
AND WHO OWNS THEM?
The City is home to approximately 6,643 STREET
LIGHTS. These street lights are owned by:
CAN STREETLIGHTS BE
INSTALLED ON WOODEN
UTILITY POLES?
Yes. Southern California Edison (SCE) will install
street lights on wooden utility poles owned by
SCE free of charge. Residents may submit these
requests through the SCE website at
WWW.SCE.COM. This process does not require the
petition process described above; however, you
and other residents on your street block will be
assessed the operations and maintenance of the
street light(s) affixed to the utility poles through
your property tax.
DO I STILL NEED TO PAY FOR A STREET LIGHT IF
I DID NOT SIGN THE PETITION?
Yes, all property owners on the street block will be equally assessed if at least 67% (TWOTHIRDS) of property owners sign the petition.
CAN ASSESSMENT RATES CHANGE?
The City Council is required to conduct a NOTICED PUBLIC HEARING annually to determine if assessment rates will stay the same, decrease or increase for the following year.
STREETLIGHT OWNER
City of Downey
Caltrans
Southern California Edison
Shared with neighboring cities
NUMBER OF LIGHTS OWNED
2,234
57 4,409
33