STAFF REPORT
Meeting Date:
March 24, 2026
CONSENT
14 SUBJECT: AUTHORIZE THE CITY MANAGER TO APPROVE A DEFERMENT LOAN TO
STEVE BRUCE LIUZZI AND CAREN MARY LIUZZI REVOCABLE FAMILY
TRUST FOR PARTICIPATION IN THE CITY'S UNDERGROUND UTILITY
ASSESSMENT DEFERMENT LOAN PROGRAM FOR UNDERGROUND
UTILITY ASSESSMENT DISTRICT 2021-1 (WEST STREET)
RECOMMENDATION: It is recommended that the City Council:
1. Authorize the City Manager to approve the deferment loan to Steve Bruce Liuzzi and Caren Mary Liuzzi Revocable Family Trust in an amount not to exceed $73,746.61; and
2. Find the item is not a project subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15378.
SUMMARY OF THE MATTER
This report recommends that the City Council authorize the City Manager to approve a deferment loan to the Steve Bruce Liuzzi and Caren Mary Liuzzi Revocable Family Trust, the owner of the property located at 31494 West Street, for participation in the City’s Underground Utility Assessment Deferment Loan Program for Assessment District 2021-1 (West Street).
Although the Property Owner initially submitted a complete application prior to the November 17, 2025, deadline, the application was subsequently withdrawn (as the property owners had concerns and questions about the documentation) and later resubmitted after the deadline had passed. The City Manager then asked staff and Bond Counsel if there was a way to mirror the AD 2021-1 deferment program. There is. Because the request is being reconsidered after the established deadline, the City’s bond counsel, Best Best & Krieger LLP, recommended a pathway outlined here, including that the City Council approve the loan and authorize the City Manager to execute the necessary loan documents (Attachment 1).
If approved, the deferment loan would be issued in an amount not to exceed $73,746.61 and funded through the Street Lighting Special Revenue Fund. The recommended action is administrative in nature and is not a project under CEQA pursuant to CEQA Guidelines Section 15378.
DISCUSSION
On September 23, 2025, the City Council approved the formation of Underground Utility Assessment District 2021-1 (West Street). In October, the City’s Public Works Department mailed cash collection notices to all the property owners located within the West Street Assessment District to communicate the deadline for the cash collection period and date to submit applications and supporting documents to participate in the City’s deferment loan program was November 17, 2025. The Property Owner - who had an assessment of $43.062 - submitted a completed deferral application packet to the City prior to the deadline. However, on November 12, 2025, the Property Owners sent an email to the City’s Finance Director withdrawing their application from consideration. After November 17, 2025, the Property Owners changed their mind and requested the City reconsider their application for the deferment loan program.
APPROVE LOAN AGREEMENT WITH STEVE BRUCE LIUZZI AND CAREN MARY LIUZZI
REVOCABLE FAMILY TRUST FOR PARTICIPATION IN THE CITY'S UNDERGROUND
UTILITY ASSESSMENT DEFERMENT LOAN PROGRAM FOR THE WEST STREET
ASSESSMENT DISTRICT
March 24, 2026
In this case, given that we have both a relatively new process (for eligibility) and an updated deferment loan program document, the City Manager believed it appropriate to be more flexible with this property owner’s initial hesitation and understandable questions about what the deferment documents obligated her do to. As such, the City Manager asked the staff, including counsel, to determine if another path was feasible that mirrored the deferment loan practices and policies – they determined that the one proposed here would do so.
Noting that the application and related materials meet the eligibility requirements of the City’s deferment loan program, City Council consideration and approval is required because the application was resubmitted for consideration after the established deadline. Should the Council approve this, it will be imperative that the City record and follow this deferment thoroughly, as it could be overlooked as it is outside of past practice.
FINANCIAL ANALYSIS
The City funds the utility undergrounding deferment loan program from the Street Lighting Special Revenue Fund (134). If approved, $73,746.61 of the Street Lighting Fund’s available fund balance would be committed to make the bond principal and interest payments to the West Street Assessment District on behalf of the Property Owner. The amount owed is $43,062 (the original assessment) plus $30,684 in interest (unless prepaid earlier - then the interest amount is prorated).
Another 1% per year will be charged on top of that amount, due at the time of repayment (and also prorated - i.e. only reflective of the number of deferral years). The Street Lighting Fund will be replenished for the full loan amount, plus 1% interest per year should the property be sold or transferred.
ENVIRONMENTAL ANALYSIS
Section 15378 (b)(4) & (5) exclude from the definition of “project” for CEQA purposes the creation of funding mechanisms or other government fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment. Here, the approval of a loan deferment for an undergrounding district is a fiscal activity that does not involve to any specific project (as the undergrounding district was already approved and reviewed under CEQA) which may result in potentially significant physical impact on the environment.
Further, this administrative activity will not result in direct or indirect physical changes in the environment.
ATTACHMENT
1. Loan Agreement (Pgs. 3-35)
Submitted By: Michelle Bannigan Approved: .David A Kiff Michelle Bannigan, Finance
Director
Dave Kiff, City Manager
APPROVE LOAN AGREEMENT WITH STEVE BRUCE LIUZZI AND CAREN MARY LIUZZI
REVOCABLE FAMILY TRUST FOR PARTICIPATION IN THE CITY'S UNDERGROUND
UTILITY ASSESSMENT DEFERMENT LOAN PROGRAM FOR THE WEST STREET
ASSESSMENT DISTRICT
March 24, 2026
Report Prepared By:
Michelle Bannigan, Finance Director