cc: Alin Podoreanu, OSFM, Supervising Pipeline Safety Engineer Andy Chau, OSFM, Supervising Pipeline Safety Engineer
Brendan Feery, OSFM, Supervising Pipeline Safety Engineer Doug Allen, OSFM, Supervising Pipeline Safety Engineer
Huy Nguyen, OSFM, Supervising Pipeline Safety Engineer
226321
1 96973.1
ORDINANCE NO. _______
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LYNWOOD GRANTING
A NONEXCLUSIVE FRANCHISE TO TORRANCE PIPELINE COMPANY TO
OPERATE AND MAINTAIN A PIPELINE SYSTEM FOR THE TRANSPORTATION OF
OIL AND GAS UNDER CERTAIN PUBLIC WAYS AND PUBLIC PLACES IN THE CITY OF LYNWOOD; SETTING FORTH CONDITIONS ACCOMPANYING A GRANT OF NONEXCLUSIVE FRANCHISE; PROVIDING FOR AMOUNT AND METHOD OF
PAYMENT BY FRANCHISEE FOR THE PRIVILEGE GRANTED, AND PROVIDING
FOR THE TERM OF THE NONEXCLUSIVE FRANCHISE
RECITALS
WHEREAS, the Public Utilities Code Sections 6234 authorizes City to grant nonexclusive franchises for oil and gas pipelines by ordinance;
WHEREAS, On March 18, 2008, the City Council of the City of Lynwood (“City Council”) adopted Ordinance No. 1600, which granted ExxonMobil Oil Corporation a non- exclusive fifteen (15) year franchise to operate and maintain a pipeline system for the transportation of oil and gas under certain public ways and public places within City boundaries (“Franchise”); and
WHEREAS, on June 7, 2016, the City Council approved the transfer of Pipeline Ordinance No. 1600 from the ExxonMobil Oil Corporation to Torrance Pipeline Company LLC; and
WHEREAS, on April 4, 2023, the City Council , pursuant to Ordinance No. 1757, granted the Torrance Pipeline Company LLC an additional two (2) year term for the Franchise; and
WHEREAS, the Franchise will expire on May 4, 2025 and Torrance Pipeline Company LLC desire to extend the Franchise for an additional ten (10) year term; and
WHEREAS, on July 18, 2024, Torrance Pipeline Company LLC filed a request to extend the existing pipeline Franchise; and
WHEREAS, on March __, 2025, pursuant to California Public Utilities Code Section 6232, the City Council adopted Resolution No. ____ declaring its intent to grant an additional ten (10) year term to Torrance Pipeline Company LL C and set a hearing date of March __, 2025; and
WHEREAS, on March __, 2025, the City Council conducted a duly noticed hearing regarding the granting of such Franchise to Torrance Pipeline Company LLC; and
227
2 96973.1
WHEREAS, the City Council and Torrance Pipeline Company LLC desire to grant Torrance Pipeline Company LLC an oil and gas pipeline franchise as further described below.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. TITLE
This ordinance shall be known and may be cited as the " Torrance Pipeline Company LLC Franchise Ordinance."
Section 2. DEFINITIONS
For the purpose of this Ordinance, the following terms, phrases, words and their derivations have the meaning set forth below. When not inconsistent with the context, words used in the present tense include the future tense, words in the plural number include the singular number, and words in the singular number include the plural number.
The word "shall" is always mandatory and not merely directory.
a. City means the City of Lynwood.
b. Council means the City Council of the City of Lynwood.
c. Code means the Municipal Code of the City of Lynwood, as amended from time to time.
d. Department means the Department of Public Works of the City of Lynwood.
e. Director means Director of Public Works of the City of Lynwood.
f. Facilities or Appurtenances means all property of the Franchisee, including, but not limited to, pipelines, pump stations, and service connections to the Franchisee's Facilities, whether or not installed by the Franchisee, which are erected, constructed, laid, operated or maintained in, upon, over, under, along or across any street in accordance with any right or privilege granted by the Franchise.
g. Franchise means the privilege granted by the City of Lynwood to construct, operate and maintain oil and gas pipelines under the streets, alleys, public ways and public places now laid out or dedicated, and all extensions thereof, and additions thereto, to the City of Lynwood.
h. Franchisee means Torrance Pipeline Company LLC.
228
3 96973.1
i. Franchise Payment Period means the time period between the effective date of the ordinance granting the franchise and June 30; and the period between July 1 and June 30, of each successive calendar year during the term of the franchise.
j. Main means any pipeline or conduit laid in, along, or approximately parallel with any street for the collection, transmission or distribution of any substance or commodity.
k. Major Street means any street or portion of a street designated as a major secondary highway in the Circulation Element of the General Plan.
l. Minor Street means any street or portion of a street other than one designated as a major secondary highway in the Circulation Element of the General Plan.
m. Person means any individual, firm, partnership, association, corporation, company, or organization of any kind.
n. Service Connection means the wire, pipes, or conduits which connect the building or place where the service or commodity supplied by the Franchisee is used or delivered, or is made available for use or delivery, with th e supply line or supply main in the street or with the supply line or supply main on private property.
o. Street means any road, highway, alley, land, or court or other public easement or public place, and the space above and below it, which now or hereafter exists in the City and with respect to which the City has the authority to grant a Franchise.
Section 3. GRANT OF NON-EXCLUSIVE FRANCHISE
a. The privilege and Franchise is hereby granted to Franchisee, to operate and maintain oil and gas pipelines (Facilities) under the streets, alleys, public ways and public places now laid out or dedicated, and all extensions thereof, and additions thereto, to the City of Lynwood, and more particularly described as follows: A 12-inch pipeline beginning at the southerly boundary line of the City of Lynwood, said point being 225.12 feet northerly of Dixon Avenue and
9.3 feet westerly of centerline Alameda Street East; thence continuing northerly along Alameda Street East ±3,708.41 feet to a point on centerline of Fernwood Avenue North, said point 5.25 feet westerly of the centerline of Alameda Street East; thence continuing northerly along Alameda Street East ±360.48 feet to a point 11.11 feet westerly of the centerline of Alameda Street East and 35.47 feet northerly of the centerline of 112th Street; thence northerly along Alameda Street East ±1,610.23 feet to a point 11.5 feet westerly of centerline of Alameda Street East and 188.18 feet northerly of centerline of 108th Street; thence continuing northerly along Alameda Street 229
4 96973.1
East ±434.31 feet to a point being 10.15 feet westerly of centerline of Alameda Street East and 280.22 feet northerly of Martin Luther King Jr.
Boulevard and formally Century Boulevard; thence continuing northerly along Alameda Street East ±411.70 feet to the northerly boundary line of Lynwood, said point being and 9.3 feet westerly of centerline of Alameda Street East; a total distance within the City of Lynwood of ±6,525.13 more or less all of which is 12-inch pipeline.
b. The right to use and occupy said streets, alleys, public ways and public places of the purpose set forth, shall not be exclusive, and the City reserves the right to grant a similar use of such streets, alleys, public ways and public places, to any person at any time during the period of the Franchise.
c. The Franchise is granted subject to all of the terms and conditions contained in this Ordinance and the City of Lynwood Municipal Code. If this Ordinance specifies terms and conditions that augment, modify, or waive the terms and conditions set forth in the City of Lynwood Municipal Code, the provisions of this Ordinance will be deemed to be controlling.
Section 4. TERM
The term of the Franchise shall be for a period of ten (10) years commencing thirty (30) days after the adoption of this Ordinance.
Section 5. ACCEPTANCE OF FRANCHISE
Within thirty (30) days after the Council's adoption of this Ordinance granting the Franchise, the Franchisee must file with the Director, its written acceptance of the terms and conditions of this ordinance.
Section 6. MAPS
Within ninety (90) days after the date on which any Facilities or Appurtenances have been laid, removed or abandoned under the Franchise, the Franchisee must file with the Department a map or maps accurately showing the "as built" location, depth, and size of those Facilities or Appurtenances.
Section 7. INSURANCE
On or before the effective date of this Ordinance granting the Franchise, the Franchisee must provide satisfactory evidence of having obtained policies of comprehensive general liability and workers' compensation insurance from companies authorized to transact business as insurers in the State of California.
a. The policy of comprehensive general liability insurance must:
230
5 96973.1
1. Be issued to the Franchisee and name the City, its officers, agents, and employees, as additional insureds.
2. Indemnify the City against all liability for personal and bodily i njury, death, and damage to property arising from activities conducted pursuant to the Franchise and provide for the following:
i. Coverage for negligent acts or omissions of the Franchisee, its agents, servants and employees, committed in the conduct of F ranchise operations;
ii. A combined single-limit liability insurance coverage in the amount of ten million dollars ($10,000,000.00); and
iii. No cancellation without thirty (30) days' prior written notice of cancellation to the Director.
b. The policy of workers' compensation insurance must:
1. Be in a form and substance previously approved by the California Insurance Commissioner.
2. Cover all employees of Franchisee who will be employed or do work related to the Franchise operations.
3. Provide for every benefit and payment required by the California Labor Code, including, but not limited to, vocational rehabilitation and death benefits.
4. Be non -cancelable without thirty (30) days' prior written notice of cancellation to the Director.
c. Franchisee mus t file with the Director, prior to commencement of any Franchise operations, either:
1. Certified copies of the required insurance policies; or
2. A certificate of insurance for each of the required policies, executed by the insurer issuing the policy, and containing the following information with respect to each policy:
i. The policy number.
ii. The date upon which the policy will become effective and the date upon which it will expire.
iii. The name of the insured and of any additional insureds. iv. The type and limits of coverage provided by the policy. v. A description of all endorsements that form a part of the policy.
d. Environmental Pollution Coverage, including Contractors Pollution Liability with minimum limits of five million dollars ($5,000,000) per claim, or ten million dollars ($10,000,000) per claim if an aggregate policy is provided, insuring against all liabilities related to environmental pollution and damage, including, but not limited to, all such liabilities for which Franchisee would be liable pursuant to the Franchise.
e. Automobile liability insurance against claims and liability for personal injury, death, or property damage arising from the use, construction, or maintenance of the Franchise, providing protection in an amount no less than Two Million Dollars ($2,000,000.00) per 231
6 96973.1
occurrence for personal injury, death and property damage. Said policy shall be carried only by a financially sound insurance company admitted and licensed to do busi ness in the State of California and which is rated A.VII or better according to the most recent A.M.
Best Co. Rating Guide.
f. No Franchise operations may commence until Franchisee has complied with the provisions of this Section, and all Franchise operat ions will be suspended during any period that Franchisee fails to keep in effect the required insurance policies.
For commencement of the Franchise or any subsequent transfer of the Franchise or any portion thereof, Franchisee shall furnish City with orig inal endorsements, or copies of each required policy, effecting and evidencing the insurance coverage required by the Franchise. Notwithstanding the above, and subject to approval by City, Franchisee may provide a program of self -insurance. Any self -insurance program maintained by Franchisee shall comply with the provisions and the specified limits contained herein.
Franchisee may effect for its own account any insurance not required under this Ordinance. Franchisee shall provide each year for the duration of the Franchise, written notification to the City of its intent to self-insure.
Franchisee shall furnish evidence of all insurance policies required by this Ordinance.
City reserves the right to require Franchisee to deliver to City copies and endorsements of all insurance policies required by this Ordinance, together with evidence reasonably satisfactory to City of payment required for procurement and maintenance of the policy, with the following time limits:
For insurance required at the commencement of the Franchise or any subsequent transfer of the Franchise or any portion thereof, within ten (10) days after the Franchise or any subsequent transfer of the Franchise or any portion thereof becomes effective;
For insurance becoming required at a later date, at least (10) days before the requirement takes effect, or as soon thereafter as the requirement, if new, takes effect;
For any renewal or replacement of a policy already in existence, at least thirty (30) days before expiration or other termination of the existing policy.
If Franchisee fails or refuses to procure or maintain insurance as required by this Ordinance or fails or refuses to furnish City with required proof that the insurance has been procured and is in force and paid for, City shall have the right at City's election and on ten (10) days notice, to declare the Franchise as a forfeiture.
Section 8. FAITHFUL PERFORMANCE BOND
Franchisee must maintain on file with the Director, a corporate surety bond, approved as to form by the City Attorney, in the penal sum of one hundred thousand dollars ($100,000.00). This bond must be issued by an admitted surety insurer approved by the 232
7 96973.1
Director, and provide that Franchisee will perform ea ch condition of the Franchise and that, upon any breach of condition of the bond, the whole amount of the penal sum will be deemed to be liquidated damages and will be recoverable from the principal and sureties on the bond. If the bond, after it has been filed, becomes insufficient at any time during the term of the Franchise, the Franchisee must obtain a new bond, in a form approved by the City Attorney, within ten (10) days after written notice to do so is given by the Director.
Section 9. FORFEITURE
The Franchisee must comply with all conditions contained in this Ordinance, including those conditions contained in the City of Lynwood Municipal Code which are incorporated by reference in this Ordinance. Any neglect, failure or refusal by the Franchisee to comply with any conditions of this Ordinance will constitute grounds for suspension or forfeiture of the Franchise. Before any suspension or forfeiture of the Franchise, the City must give to the Franchisee not less than thirty (30) days' written notice o f any default. If the Franchisee does not, within the noticed period, commence the work of compliance or, after commencing, does not prosecute the work with due diligence to completion, the Council may hold a hearing. Notice of the hearing must be given to the Franchisee by certified mail not less than ten (10) days before the hearing. At that hearing the Franchisee has the right to appear and be heard, and the Council may then determine whether the conditions are material to the operation of the Franchise and whether the Franchisee is in default of those conditions. The Council may, in its discretion, declare the Franchise suspended or forfeited.
Section 10. STATE HIGHWAYS
a. If any street or portion of a street becomes a State highway, the State will succeed to all rights reserved to the City by the Franchise, except for the right to continue to collect the Franchise payments and such other rights as by law may remain with the City.
b. This Section applies to any street or portion of a street which become s a State highway and in which the Franchisee maintains its Facilities under the authorization of the Franchise at the time that street or portion of it becomes a State highway.
Section 11. EMINENT DOMAIN
No franchise granted by the City affects the right of the City or any successor in authority to acquire the property of the Franchisee by purchase or condemnation, and nothing contained in this Ordinance may be construed to contract away, modify, or abridge, either for a term or in perpetuity, the City's right of eminent domain in respect to any public utility.
Section 12. ADMINISTRATIVE COSTS
The Franchisee must pay to the City, within thirty (30) days after adoption of this ordinance, an Administrative Fee of Ten Thousand Dollars ($ 8,000) to cover all administrative and advertising costs associated with the preparation and advertising of this Ordinance.
Section 13. ASSIGNMENT
233
8 96973.1
The Franchisee may not transfer or assign the Franchise or any part of it, except with the consent of the Council. A transfer or assignment may be made only after filing with the Council a copy of the executed instrument of transfer or assignment and a written request for the consent of the Council to that transfer or assignment. If that executed instrument and written request ar e not filed with the Council within thirty (30) days prior to the effective date of the proposed transfer or assignment, then the Franchise is subject to forfeiture and the Council may, without notice, adopt an ordinance repealing this Ordinance. In consen ting to the proposed transfer or assignment, the Council may, by ordinance, impose any additional terms and conditions upon the Franchise, and upon the transferee or assignee, which the Council deems to be in the public interest. The Franchisee has no right to transfer or assign the Franchise, in whole or in part, except in the manner specified in this Section. This Section applies to any assignment, whether by operation of law, by voluntary act of the Franchisee, or otherwise.
Section 14. PRIOR FRANCHISES
All Facilities erected, constructed, laid, operated, or maintained by the Franchisee in the streets or other areas described in this Ordinance granting the Franchise, whether or not originally installed by the Franchisee, and which are in existence prior to the effective date of this Ordinance, are subject to all terms and conditions of this Ordinance upon its effective date. This Section does not apply to Facilities which have been constructed, laid, operated, or maintained under a prior right which did n ot involve the issuance of a franchise.
Section 15. DELEGATION OF AUTHORITY/DUTIES
Wherever, in this Ordinance, a power is granted to or a duty is imposed upon a public officer or employee, the power may be exercised or the duty may be performed by a deputy of that officer or employee or by a person otherwise duly authorized pursuant to statute or ordinance.
Section 16. INDEMNITY AND HOLD HARMLESS
The Franchisee shall indemnify, defend, and hold harmless the City, its officers, agents, and employees, from and against all damages and liability arising from the use, operation, or possession of the Franchise, and from the use, operation, and maintenance of all Facilities erected, constructed, laid, operated or maintained under the Franchise.
Franchisee will not be liable to City for any damages resulting from or arising out of the negligent or willful acts, errors, or omissions of the City, its employees and/or authorized representatives.
Section 17. CONFLICTING IMPROVEMENTS
If the City or any other authorized public entity constructs or maintains any storm drain, sewer structure, or other facility or improvement under or across any Facility of the Franchisee which is maintained in accordance with this Ordinance, the Franchisee must provide, at no exp ense to the City or other public entity, such support as is reasonably required for the support, maintenance and protection of that facility or improvement.
Section 18. RELOCATION
234
9 96973.1
In connection with any City work or improvement specified in Section 35 of this Ordinance, if the Franchisee, after reasonable notice, fails or refuses to relocate, permanently or temporarily, its Facilities that are located in, on, upon, along, under, over, across, or above any street, or to pave, surface, grade, repave, resurface, or re-grade a street as required under any provision of the Franchise, then the City may cause that work to be done. The City must keep an itemized account of the entire cost of that work, and the Franchisee must reimburse the City for that cost within thirty (30) days after its receipt of an itemized account of that cost. The Franchisee is obligated to indemnify, defend, and hold harmless the City, its officers, agents, and employees, in accord with Section 16 of this Ordinance, from any liability which arises or is claimed to arise from the moving, cutting, or alteration of any of the Franchisee's Facilities, or the turning on or off of water, oil, or other liquid, or of gas or electricity.
Section 19. DAMAGE CAUSED BY DEFECTIVE FACILITIES
If any portion of a street is damaged as a result of defective Facilities laid or constructed under the Franchise, the Franchisee must, at its sole expense, repair that damage and restore the street to the condition existing before the damage was incurred, all to the satisfaction of the City. If the Franchisee, within ten (10) days after receipt of written notice from the City instructing it to repair the damage, fails to commence compliance with those instructions, or, after commencing compliance, fails to prosecute diligently the work to completion, then the City may immediately undertake whatever work is necessary to carry out those instructions. That work will be at the cost and expense of the Franchisee. By the acceptance of the Franchise, the Franchise e agrees to pay that cost and expense upon demand after receiving an itemized statement of reasonable costs incurred by City in the performance of such repair . If the damage creates an immediate danger to the public health or safety requiring immediate repair, the City may, repair that damage, and the Franchisee must pay the reasonable cost of that repair upon demand, but only if City takes reasonable efforts to notify Franchise of such repair action.
Section 20. HAZARDOUS SUBSTANCES
Prior to the issuance of any excavation permit for the construction or installation of a new pipeline for the transportation of a hazardous substance in a gaseous state, or for the transportation of hazardous liquid substances or highly volatile liquid substances, the following conditions must be satisfied, as applicable:
a. With regard to pipelines for the transportation of a hazardous substance in a gaseous state, approval must be obtained from the Los Angeles County Fire Department — Petrochemical Unit. This approval will be based upon a determination that no undue fire hazard will threaten life or property in any areas of the City where the proposed pipeline will be located. In making this determination, the Los Angeles County Fire Department — Petrochemical Unit must consider and report upon the following:
1. The type of substance in a gaseous state that is to be transported in the pipeline.
2. The density of population or structural development in the areas of the City where the pipeline will be located.
3. The adequacy of water supplies for fire suppression purposes.
4. The availability of public fire protection facilities.
5. The number and location. of shut-off valves in the pipeline. 235
10 96973.1
b. With regard to pipelines for the transportation of hazardous liquid substances or highly volatile substances, including hydrocarbon substances, the Franchisee must, unless preempted by paramount State or Federal law, submit to the Director copies of documents previously submitted to the State Fire Marshal evidencing the following:
1. That the new pipeline is designed to accommodate the passage of instrumented inspection devices, and has leak mitigation and emergency response plans and equipment as may be required by the State Fire Marshal, as provided for in section 51013(b) of the California Government Code.
2. That the newly constructed pipeline will be tested in accordance with subpart E (commencing with section 195.300) of part 195 of title 49 of the Code of Federal Regulations, as provided for in section 51013.5(a) of the California Government Code.
3. That the Franchisee will notify the State Fire Marshal and the Los Angeles County Fire Department — Petrochemical Unit at least three (3) working days prior to conducting a hydrostatic test required by the Elder California Pipeline Safety Act of 1981 (Government Code §51010 et seq.), as provided for in section 51014.3 of the California Government Code.
4. That the Franchisee will provide to the Los Angeles County Fire Department — Petrochemical Unit, a map or suitable diagram showing the location of the pipe line, a description of all products to be transported within the pipeline, and a contingency plan for pipeline emergencies that includes, without limitation, any reasonable information that the State Fire Marshal may require, as provided for in section 510 15(a) of the California Government Code.
5. That the Franchisee will be available to meet with the Los Angeles County Fire Department — Petrochemical Unit, at least once each calendar year to discuss and review contingency plans for pipeline emergencies, a s provided for in section 51015( e) of the California Government Code.
6. That, with regard to any portion of the proposed pipeline that is within five hundred feet (500') of any rail line in the City, the Franchisee will be in compliance with all applicable regulations adopted by the State Fire Marshal governing the construction, testing, operations, periodic inspect ion, and emergency operations of intrastate hazardous liquid pipelines, as provided for in section 51015.2 of the California Government Code.
7. That the Franchisee will comply with all applicable regulations of the State Fire Marshal that establish procedures for maintaining, testing, and inspecting mainline valves and check valves on the intrastate hazardous liquid pipeline, as provided for in section 51015.4 of the California Government Code.
8. That the Franchises will be in compliance with all applicable guidelines and regulations of the State Fire Marshal relating to the spacing of valves on new pipelines so as to limit spillage from surrounding higher ground into standard metropolitan statistical areas and environmentally sensitive areas, as provided for in section 51016 of the California Government Code.
9. That the Franchisee will immediately report to the Los Angeles County Fire Department — Petrochemical Unit, as well as the office of Emergency Services, every rupture, explosion, or fire involving the pipeline, including the testing of such pipeline, as provided for in section 51018(a) of the California Government Code. 236
11 96973.1
Section 21. COUNCIL APPROVAL OF LOCATION OF FACILITIES
With the exception of existing Facilities and on -going maintenance and operations associated with such assets, t he Franchisee may not install or operate any Facilities in any public street, alley, public way, or public place without first obtaining the prior approval of the Council.
PART B. COMPENSATION
Section 22. DAMAGE TO PUBLIC PROPERTY GENERALLY
Any damage caused directly or indirectly to any public property by the Franchisee, while exercising any right, power, or privilege under the Franchise, or while performing any duty under the provisions of this Ordinance, must be promptly repaired by Franchisee at its sole cost and expense.
Section 23. COMPLIANCE WITH APPLICABLE LAWS
The Franchisee shall, at all times during the term of the Franchise, comply with all Applicable State, Federal and Local laws, ordinances, codes, rules and regulations.
Section 24. NOTICES
All notices, bills, payments, reports, or other material required to be delivered under the terms of the Franchise shall be delivered to:
City
City of Lynwood
Public Works Director
11330 Bullis Road
Lynwood, California 90262
Franchisee
Torrance Pipeline Company LLC
Manager Right of Way
12851 E. 166th Street
Cerritos, California 90703
Any notices, bills, payments, reports, or other material required by this Ordinance shall be deemed received on (a) the day of delivery if delivered by hand during Franchisee's regular business hours or by email, facsimile before or during Franchisee's reg ular business hours; or b) on the third business day following deposit in the United States mail, postage prepaid, to the addresses heretofore set in this Ordinance, or to such other addresses as the parties may, from time to time, designate in writing.
Section 25. FEES
The Franchisee must pay to the City an annual Base Franchise Fee, for nonpublic utility pipeline franchises for gas or oil products , of $3.51per lineal ft. of pipeline for a 12 inch pipeline for each for Franchise Pay Period for the Term of this Franchise. 237
12 96973.1
Section 26. PRORATION OF PAYMENTS
If Facilities are abandoned by the Franchisee with the approval of the City as elsewhere provided in this Ordinance, or if Facilities are removed by the Franchisee, the annual Base Franchise Fee will be prorated for that calendar year, as of the end of the calendar month in which that abandonment or removal occurs.
Section 27. RECORDS AND INSPECTIONS
a. Franchisee must preserve for a period of five (5) years all records necessary to determine the amount of any fee which is payable to the City under the provisions of this Ordinance.
b. At all reasonable times, the Franchisee must permit the City to inspect all property of the Franchisee that is erected, constructed, laid, operated , or maintained under the Franchise, and to examine and make copies of all non -proprietary books, accounts, papers, maps, and other records maintained by the Franchisee, or under its control, which concern the operations, transactions, property or financial cond ition of the Franchisee pertaining to the Franchise. These records must be made available to the City at a location in the County of Los Angeles.
PART C. CONSTRUCTION
Section 28. CONSTRUCTION REQUIREMENTS
Pipelines and appurtenances must be constructed and maintained in a good and workmanlike manner and in conformity with all applicable State, Federal and Local laws, ordinances, codes, rules and regulations.
Section 29. NEW INSTALLATION OR REPLACEMENT
The installation or replacement of pipelines, Appur tenances, and all other Facilities necessary for the operation, maintenance, and safety of pipelines and conduits must be in accordance with permits issued by the Department. All proposed installations or replacements must be reviewed and approved, if approved, by the Director as to the most acceptable location in the City's streets.
Section 30. PERMITS
Where the provisions of any law, ordinance, code, or regulation require the issuance of an excavation, encroachment or similar type of permit, the Franchisee may not commence any excavation or encroachment work under the Franchise until it has obtained that permit from the appropriate agency and/or the Department, except in cases of emergency affecting the public health, safety or welfare, or the pre servation of life or property, in which case the Franchisee must apply for a permit not later than the next business day after work has commenced.
The Franchisee's application for the permit issued by the Department must include a map showing the length and proposed location of the pipeline or Appurtenance intended to be 238
13 96973.1
used, and such other information as the Department may require. The Franchisee must pay to the Department all permit fees including, but not limited to, permit inspection fees.
The Franchisee shall notify Underground Service Alert of Southern California at 1-800- 422-4133 and obtain an inquiry identification number (USA Ticket) a minimum of two (2) working days not including day of submission , but not more than fourteen (14) calendar days, prior to any excavation in the vicinity of any potentially existing underground facilities in order to verify the location of all utilities prior to the commencement of any excavation.
The Franchisee shall be responsible for coordinating its work with all utility companies.
Section 31. WORK ON AND RESTORATION OF STREETS
a. The work of constructing, laying, replacing, maintaining, repairing or removing those pipelines and Appurtenances authorized under the provisions of this Ordinance in, over, under, alon g or across any street must be conducted so as to cause the least possible interference with pedestrian and vehicular travel on the street. As soon as the work is completed, all portions of the street which have been excavated or otherwise damaged must be promptly repaired, replaced or restored and placed in as good condition as before the commencement of such work. The restoration, repair or replacement work may, as determined by the Director, require the resurfacing, slurry sealing or other treatment of a street to a minimum of one driving lane, and all work must be done to the satisfaction of the Director and at the expense of the Franchisee.
b. If a Franchisee fails or neglects to undertake or complete the repair, replacement, or restoration work on any street, within ten (10) days after written notice has been given to Franchisee by the Director, the City may repair, replace or restore that street at the expense of Franchisee. Franchisee must pay to the City all costs incurred in performing that work. The amount chargeable is the direct cost of that work, plus the current rate of overhead then charged by the City for reimbursable work.
Section 32. FAILURE TO TIMELY COMPLY
a. If the Franchisee fails to complete any work within the time specified in a per mit, the City may require the Franchisee to pay to the City Five Hundred Dollars ($500.00) per day as liquidated damages for each day that construction extends bey ond the time specified in the permit if the Franchisee fails to make a good faith effo rt to complete the work within the time frame specified in the permit. The amount specified per day as liquidated damages will be adjusted annually by the percentage change in CPI commencing one year from the effective date of this Ordinance.
b. If the Franchisee fails to complete any work required by the terms and conditions of the Franchise, or any related permits, within the required time limits, the City ma y complete or cause to be completed that work at the expense of the Franchisee if the Franchisee fails to make a good faith effort to complete the work with on the time frame specified in the permit. The Franchisee must pay to the City the cost of performing that work after receiving an itemized statement of reasonable costs incurred by City in the 239
14 96973.1
performance of such repair. The amount chargeable to Franchisee is the di rect cost of that work, plus the current rate of overhead then charged by the City for reimbursable work.
c. Franchisee shall not be liable or responsible to City, nor be deemed to have defaulted under or breached this Agreement, for any failure or delay in fulfilling or performing any term of this Agreement, with the exception of any obligation to pay any fees required by this Agreement, when and to the extent such failure or delay is caused by or results from acts beyond the Franchisee’s reasonable control and cannot be reasonably mitigated by Franchisee , including, without limitation, the following force majeure events (“ Force Maj eure Event(s)”) that frustrates the purpose of this agreement: (a) acts of God; (b) flood, fire, earthquake or explosion; (c) war, invasion, hostilities (whether war is declared or not), terrorist threats or acts, riot or other civil unrest; (d) government order or law; (e) actions, embargoes or blockades in effect on or after the date of this agreement; (f) action by any governmental authority; (g) national or regional emergency; (h) strikes, labor stoppages or slowdowns or other industrial disturbances; (i) epidemic, pandemic or similar influenza or bacterial infection (which is defined by the United States Center for Disease Control as virulent human influenza or infection that may cause global outbreak, or pandemic, or serious illness); (j) emergency state; (k) shortage of adequate medical supplies and equipment; (l) shortage of power or transportation facilities; and (m) other similar events beyond the reasonable control of Franchisee.
Section 33. COMPLETION STATEMENT
Upon the completion of the construction of any pipelines or appurtenances authorized by the Franchise, the Franchisee must submit to the Director a statement which identifies the permit or permits issued by the Department, the total length of pipeline authorized to be constructed un der the permit or permits, and the total length of pipelines or Appurtenances actually laid.
Section 34. APPURTENANCES
The Franchisee has the right to construct, maintain and repair all traps, manholes, conduits, valves, appliances, attachments, and Appurtenances (collectively referred to as "Appurtenances") as may be necessary for the proper maintenance and operation of the pipelines under the Franchise. Those Appurtenances must be kept flush with the surface of the street and be located so as to conform to all applicable State, Federal and local laws, ordinances, codes, rules and regulations, and to all permits issued by the Department, and must not interfere with the use of the street for travel. The Fra nchisee has the right, subject to all applicable State, Federal and Local laws, ordinances, codes, rules and regulations, to make all necessary excavations in the streets for the construction, maintenance and repair of those Appurtenances; but the Franc hisee must first obtain an excavation permit from the Department to undertake that work.
Section 35. ORDINARY REPAIR
240
15 96973.1
The Franchisee may excavate in the street for pipeline repair for the number of days agreed upon by the Franchisee and the Department; but the Franchisee must first obtain an excavation permit from the Department to undertake that work.
Section 36. RELOCATION OF PIPELINES AND APPURTENANCES
a. The City reserves the right to change the grade, alignment, or width, of any public street, way, alley, or place over which the Franchise is granted, including the construction of any subway or viaduct. If any pipelines, Facilities or Appurtenances constructed, installed, or maintained by the Franchisee are located in a manner which prevents or interferes with the change of grade, traffic needs, operation, maintenance, improvements, repair, construction, reconstruction, widening, alteration or relocation of a street, the Franchisee must permanently or temporarily relocate that Facility, at no expense to the City, upon receipt of a written request from the D irector to do so. The Franchisee must commence that work on or before the date specified in the written request, which date may be not less than ninety (90) days from receipt of the written request. Franchisee must then diligently prosecute that work to completion.
b. The City reserves the right for itself, and all other public entities which are now or may later be so authorized, to lay, construct, repair, alter, relocate , and maintain subsurface or other facilities or improvements of any type or description within the streets over which the Franchise is granted. If the City or other public entity determines that the location or relocation of those facilities or improvements conflicts with the Facilities laid, constructed or maintained under the Franchise, whether those Facilities were laid before or after the facilities of the City or other public entity were laid, the Franchisee must relocate those Facilities or improvements, at no expense to the City or other public entity.
The Franchisee must, on or before the date specified in a written request from the Director, which date may not be less than ninety (90) days after receipt of the notice and request to do so, commence work to permanently or temporarily change the location of all Facilities which conflict with those improvements to another location which is approved by the Director. Franchisee must then diligently prosecute the work to completion. If the street is later designated as a State highway, the rights of the State of California will be as provided in California section 680 of the Streets and Highways Code while it remains a State highway.
Section 37. BREAKS OR LEAKS
If any portion of a street is damaged by reason of breaks or leaks in any pipeline, conduit, or Appurtenance constructed or maintained under the Franchise, the Franchisee must, at its sole expense and immediately following written or oral notification from the Director, promptly repair that damage and put the street in as good condition as existed before that damage or leak, all to the satisfaction of the Department. The Franchisee must obtain an excavation permit from the Department to undertake that work.
Section 38. EMERGENCY EQUIPMENT
At all times during the term of the Franchise, the Franchisee must maintain or arrange for, on a twenty four (24) hour basis, an emergency telephone number provided to the Los Angeles County Fire Department Station 147, adequate emergency equipment, and 241
16 96973.1
a properly trained emergency crew. The emergency equipment and crew must be available within a radius of twenty five (25) miles from any Facilities installed or maintained under the Franchise for the following purpose: shutting off the pressure and the flow of substances in those Facilities in the event of an emergency resulting from an earthquake, act of war, civil disturbance, fire, flood, or any other cause.
Section 39. REMOVAL OR ABANDONMENT OF FACILITIES
a. Upon the expiration, revocation or termination of the Franchise, or upon the permanent discontinuance of the use of all or a portion of its Facilities, Franchisee must, within the following thirty (30) days, make written application to the Director for authority, as determined by the Franchisee, either: 1) to abandon all or a portion of those Facilities in place; or 2) to remove all or a portion of those Facilities. The application must describe the Facilities desired to be abandoned or removed by reference to the map or maps required by Section 6 of this Ordinance and must describe with reasonable accuracy the physical condition of those Facilities.
b. The Director must determine whether the abandonment or removal proposed by the Franchisee may be performed without detriment to the public interest and under what conditions the proposed abandonment or removal may be safely completed. The Director must then notify the Franchisee of that determination. The Franchisee must pay to the City the cost of all tests and studies required to determine the disposition of the application for abandonment or removal.
c. Within thirty (30) days after rece ipt of the notice, the Franchisee must apply for a permit from the Department to abandon or remove all or any portion of the Facilities and must pay all applicable fees and costs. The permit must set forth any conditions of abandonment or removal that may be prescribed by the Director . Any abandonment of the Facilities must be conditioned, in part, upon Franchisee's future compliance with the provisions of Section 35 of this Ordinance.
d. Within ninety (90) days after obtaining the permit, the Franchisee must commence and diligently prosecute to completion the work authorized by the permit.
e. If the Franchisee applies for authority to abandon in place all or a portion of its Facilities, and the Director determines, in his or her sole discretion, that such abandonment in place may be effected without detriment to the public interest, and the Director accepts such abandonment in place of all or a portion of the Facilities, the Franchisee must pay to the City an abandonment fee as follows:
Pipelines with an Internal Diameter of: Amount per Lineal Foot 0-12 inches $15.00
13-18 inches $22.00
19-30 inches $28.00
242
17 96973.1
Section 40. FAILURE TO COMPLY
a. If any Facilities proposed to be abandoned "in place" and subject to prescribed conditions are not abandoned in accordance with those conditions, the Director may issue additional orders, including an order that the Franchisee remove any or all of those Facilities. The Franchisee must comply with these additional orders.
b. If the Franchisee fails to comply with the terms and conditions of abandonment or removal as required by this Ordinance and within the time prescribed by the Director, then the City may remove or cause to be removed those Facilities at the Franchisee's expense.
The Franchisee must pay to the Ci ty the cost of that work, plus the current rate of overhead then charged by the City for reimbursable work after receiving an itemized statement of reasonable costs incurred by City in the performance of such repair.
c. If, upon the expiration, revocation or termination of the Franchise, or the permanent discontinuance of the use of all or a portion of its Facilities, the Franchisee, within thirty (30) days thereafter, fails or refuses to make written application for the authority referenced above, the Director will make the determination as to whether the Facilities are to be abandoned in place or removed. The Director must then notify the Franchisee of that determination. The Franchisee must then comply with the provisions of Section 39 of this Ordinance.
Section 41. ABANDONMENT "IN PLACE" CONDITIONS:
Facilities abandoned "in place" are subject to the condition that, if at any time after the effective date of the abandonment, the Director determines that any Facility interferes with a public project, Franchisee or its successor in interest must remove that Facility at its expense when requested to do so by the City, or pay the City for the cost of that removal.
PART D. SPECIAL PROVISIONS
Section 42. RIGHTS GRANTED
Franchisee has the right, during the term of that Franchise, to transport petroleum, oil, gas, gasoline, and like substances through the pipelines maintained under the Franchise.
Section 43. MATERIALS USED
All pipelines used for the transportation of petroleum, oil, gas, gasoline, and like substances, or other flammable liquids must be of standard material and in conformity with current American Petroleum Institute pipeline specifications.
Section 44. APPROVALS
No excavation permit for a pipeline to be constructed or installed in accordance with the Franchise may be issued unless the Franchisee has complied with all applicable provisions of Subsection 20b of this Ordinance relating to pipelines for the transportation of hazardous liquid substances or highly volatile liquid substances. This requirement does not apply to emergency situations, such as those involving the mitigation of pipeline ruptures, spills or leaks.
243
18 96973.1
Section 45. REPORTS
During the term of the Franchise, and within thirty (30) days after the expiration of each Franchise Payment Period, the Franchisee must:
a. File with the Director two (2) copies of a report, verified under penalty of perjury by a duly authorized representative of the Franchisee, showing for the immediately preceding Franchise Payment Period: 1) the length of all lines in streets; 2) the internal diameter of those lines; 3) the rate per foot per year; and 4) the total amount due the City.
b. File with the Director a report in triplicate, showing the number of each permit obtained for the installation of new mains during the immediately preceding Franchise Payment Period, together with the length and size of those mains. The Franchisee must show on this report any change in pipeline footage since the last Franchise Payment Period, segregating that footage as to new mains laid, old mains removed, old mains abandoned in place, and the footage of mains in any territory annexed or incorporated since the last Franchise Payment Period.
Section 46. PAYMENTS DUE
The Franchisee's payments are due annually in accordance with the Franchise Payment Period indicated in Section 2 of this Ordinance.
Section 47. SEVERABILITY
If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional.
Section 48. PUBLISHING ORDINANCE
The City Clerk is directed to certify to the passage and adoption of this Ordinance and to cause it to be posted or published as required by law and said Ordinance shall become effective 30 days after its passage.
PASSED, APPROVED AND ADOPTED this ____ day of ________ 2025.
________________________________
Rita Soto, Mayor
ATTEST:
244
19 96973.1
_______________________________
Maria Quiñonez, City Clerk
APPROVED AS TO FORM APPROVED AT TO CONTENT
_______________________________ ________________________________ Noel Tapia, City Attorney Julian Lee, Interim City Manager 245
20 96973.1
STATE OF CALIFORNIA )
) §
COUNTY OF LOS ANGELES )
I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the above and foregoing Ordinance was duly adopted by the City Council of the City of Lynwood at a regular meeting held in the City Hall of said City on the _______ day of __________, 2023, and passed by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_______________________________
Maria Quiñonez, City Clerk
246
AGENDA STAFF REPORT
DATE:
June
3, 2025
TO:
Honorable Mayor and Members of the City Council
APPROVED BY:
Julian Lee, City Manager
PREPARED BY:
Harry Wong, Director of Finance and Administration
Ahmad Ansari, Interim Director of Public Works
SUBJECT:
FY 2025/2026 LYNWOOD LANDSCAPE MAINTENANCE ASSESSMENT
DISTRICT INITIATING PROCEEDINGS, DECLAING INTENTION TO
LEVY AND BALLOT FOR NEW OR INCREASED ASSESSMENTS
APPROVING THE ENGINEER’S REPORT, AND SETTING THE DATE OF THE PUBLIC HEARING.
Agenda Item # 10.3.
Recommendation:
Staff recommends that the City Council adopt the attached resolutions entitled:
1 .
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, CALIFORNIA,
INITIATING PROCEEDINGS FOR THE ANNUAL LEVY OF ASSESSMENTS AND
BALLOTING PROCEDURES TO LEVY PROPOSED NEW OR INCREASED
ASSESSMENTS FOR THE CITY OF LYNWOOD LANDSCAPE MAINTENANCE ASSESSMENT DISTRICT FOR FISCAL YEAR 2025/2026 PURSUANT TO THE PROVISIONS OF PART 2 OF DIVISION 15 OF THE CALIFORNIA STREETS AND
HIGHWAY CODE AND ORDERING THE ENGINEER TO PREPARE AND FILE AN ENGINEER’S REPORT;
2 .
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, CALIFORNIA,
DECLARING ITS INTENTION TO ORDER THE LEVY AND COLLECTION OF ANNUAL
ASSESSMENTS AND TO BALLOT PROPERTY OWNERS FOR FISCAL YEAR 2025/2026 WITHIN THE LYNWOOD LANDSCAPE MAINTENANCE ASSESSMENT DISTRICT PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972 (COMMENCING WITH STREETS AND HIGHWAYS CODE SECTION 22500 ET SEQ.)
AND FIXING THE TIME AND PLACE FOR HEARING PROTESTS AND OBJECTIONS AS AUGUST 5, 2025; AND
3 .
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, CALIFORNIA, PRELIMINARY APPROVAL OF THE ANNUAL ENGINEER’S REPORT INCLUDING City Council City Council Regular Meeting 247
PROPOSED NEW OR INCREASED ASSESSMENTS FOR THE CITY OF LYNWOOD
LANDSCAPE MAINTENACE ASSESSMENT DISTRICT PREPARED PURSUANT TO CALIFORNIA STREETS AND HIGHWAYS CODE, SECTION 22565 ET SEQ., AS ORDERED BY THE CITY COUNCIL ON JUNE 3, 2025.
Background:
The Lynwood Landscape Maintenance Assessment District was first established in 1978 under the Landscaping and Lighting Act of 1972. The cost of maintenance, including the assessment engineering costs and administration, can be levied annually against the properties that receive the benefits thereby relieving the General Fund of those costs. Property owners can be assessed only for the benefits received. The assessments are levied as a fair and equitable way to provide funds to maintain, operate and improve the landscaped areas in the City. The plans and specifications for the District are on file in the Office of the Director of Public Works
for the City of Lynwood
.
Discussion and Analysis:
On June 3, 2025, the City Council is scheduled to consider adopting a Resolution ordering the Engineer to prepare and file a report regarding the Lynwood Landscape Maintenance Assessment District (District). The Engineer’s Report (Report), completed and prepared by Willdan Financial Services, is attached to this staff report (Attachment B). Willdan Financial Services is acting as the Assessment Engineer on behalf of the City of Lynwood.
There is a proposed increased assessment at a new rate of $6.555 per front foot, which is estimated to generate $3,695,473. The current assessment rate of $1.900 per front foot applies to both residentially and commercially zoned properties, results in a total assessment of $1,071,166 which will be collected if a majority protest exists for the new or increased assessment.
The estimated cost to operate the District for Fiscal Year (FY) 2025/2026, including both direct and indirect expenses, is $3,318,558. The estimated assessment revenue (Balance to Levy in Budget) for FY 2025/2026 is $1,071,166 if the current rates remain unchanged, and $3,695,473 if there is no majority protest and the proposed maximum rates are approved. The District’s estimated beginning fund balance for FY 2025/2026 is a negative $(9,051,765). If current rates remain in place, the District is projected to end FY 2025/2026 with a negative fund balance of $(10,318,929). If the proposed increased rates are approved, the ending fund balance is projected to improve to $(7,694,622).
This reduction in the negative fund balance reflects the implementation of a seven-year Deficit City Council City Council Regular Meeting 248
Recovery Plan included in the proposed balloted budget. The majority protest balloting process currently underway is a key step in the City’s effort to achieve long-term financial sustainability for the District.
The assessment rate for the District has not been increased since 1998-99. The revenues have remained relatively flat, however, demands for services have increased for the Grounds and Trees Divisions. The District expenditures exceed incoming revenues resulting in an on- going structural deficit.
Public Hearing
After the approval of the Engineer’s Report, staff recommends that the City Council sets the public hearing for August 5, 2025, at the hour of 6:00 p.m. or soon thereafter, in the Council Chambers of the City Hall Annex, 11350 Bullis Road, Lynwood, California, to hear protests and objections on the levy and collection of the proposed assessments (existing rates) against the lots and parcels of land within the District for FY 2025/2026.
Information on the telephonic access to the City Council Meeting may change. To receive the most updated information on whether the Public Hearing is accessible telephonically or videoconferencing; and/or changes on the phone numbers as well as access code and password, this information will be included in the August 5, 2025 Agenda. Members of the public may access this Agenda online by visiting the City of Lynwood’s website at www.lynwoodca.gov/
, clicking on “Agendas & Minutes,” selecting “Council Meeting Agenda Packet,” and selecting “Agenda August 5th-Regular Meeting” to obtain the dial-in number and correlating access code. Members of the public may also use the following link:
www.lynwoodca.gov/129/Agendas-Minutes
.
Fiscal Impact:
The Report includes Direct and Indirect cost of $13,318,558 for the District for FY 2025/26.
The estimated assessment amount that can be collected is $1,071,166 without balloting and $3,695,473 if no majority protest exists. The District is projected to end FY 2025/26 with $(10,318,929) deficit if the current rates are not increased and $(7,694,622) deficit if no majority protest exists.
Future of the District and Adjustment for an Annual CPI Increase
City Council City Council Regular Meeting 249
FY 2526 Lynwood Landscape Engineer's Report to City updated 5.28.25.pdf 1 LMAD Initiate Proceedings Resolution 1 to City.docx
Landscape (Resolution-Intent) 2 to City.docx
Landscape (Resolution-Report) 3 to City.doc
The District provides essential services such as maintenance of landscaping and appurtenant facilities located in and along public streets and sidewalks, including street trees, medians and parkways, as well as related irrigation systems. Improvements also include the maintenance of landscaped areas adjacent to and appurtenant to water well sites. The cost to maintain the District continues to outpace the revenues collected through the levy. Assessment rates cannot be increased without a ballot protest process.
There is a proposed new or increased assessment at a rate of $6.555 per front footage. If the new or increased proposed assessment fails. The assessment rate will remain the same at $1.90 per front footage for both residentially zoned and commercially zoned properties. There is also a proposed annual inflationary adjustment based on the greater of 3% or Consumer Price Index (“CPI”) for the Los Angeles-Long Beach-Anaheim area as of January of each succeeding year.
Coordinated With:
City Manager’s Office
City Attorney’s Office
Department of Public Works
ATTACHMENTS:
Description
City Council City Council Regular Meeting 250
City of Lynwood Landscape Maintenance Assessment District 2025/2026 ENGINEER’S REPORT Intent Meeting: June 3, 2025 Public Hearing: August 5, 2025 27368 Via Industria Suite 200 Temecula, CA 92590 T 951.587.3500|800.755.6864 F 951.587.3510|888.326.6864 Property Tax Information Line T. 866.807.6864 www.willdan.com 251
ENGINEER'S REPORT AFFIDAVIT Lynwood Landscape Maintenance Assessment District City of Lynwood Los Angeles County, State of California This Report identifies the parcels within the Landscape Maintenance Assessment District and all relevant zones therein, as they existed at the time of the passage of the Resolution of Intention. Reference is hereby made to the Los Angeles County Assessor’s maps for a detailed description of the lines and dimensions of parcels within the District. The undersigned respectfully submits the enclosed Report as directed by the City Council. Dated this ____________ day of ______________, 2025. Willdan Financial Services Assessment Engineer On Behalf of the City of Lynwood By: ________________________________ Stacee Reynolds Principal Consultant, District Administration Services By: ________________________________ Tyrone Peter PE # C 81888 252
TABLE OF CONTENTS INTRODUCTION .............................................................................................................. 1 Historical Information ............................................................................................................................... 2 Changes to the District for Fiscal Year 2025/2026 .................................................................................. 2 Ballot Process .......................................................................................................................................... 2 Report Content ......................................................................................................................................... 3 PART I – PLANS AND SPECIFICATIONS ..................................................................... 6 Description of the District ......................................................................................................................... 6 Improvements Authorized by the 1972 Act .............................................................................................. 6 District Improvements .............................................................................................................................. 7 PART II – METHOD OF APPORTIONMENT .................................................................. 9 Legislative Authority and Provisions ........................................................................................................ 9 Benefit Analysis ...................................................................................................................................... 10 Assessment Methodology ...................................................................................................................... 11 PART III – ESTIMATE OF COSTS ................................................................................ 12 Capital Improvement Costs .................................................................................................................... 12 District Budget for Current & Establishment of New/Increased Maximum Assessments ...................... 12 PART IV – DISTRICT DIAGRAM .................................................................................. 15 PART V – ASSESSMENT ROLL .................................................................................. 16 253
Fiscal Year 2025/2026 Landscape Maintenance Assessment District Page 1 INTRODUCTION The City of Lynwood (the “City”) under the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code (the “1972 Act”), and the provisions of the California Constitution Article XIIID (the “Constitution”), annually levies and collects special assessments for the City’s maintenance district designated as: Lynwood Landscape Maintenance Assessment District (the “District”) in order to maintain and operate landscaping and appurtenant facilities located in and along public streets and sidewalks, including street trees, medians, parkways, and related irrigation systems. These improvements also include the maintenance of landscaped areas adjacent to and appurtenant to water well sites, provided such landscaping confers a special benefit to surrounding parcels. The District may also include the installation and maintenance of previously approved landscaping and appurtenant facilities within public rights-of-way or areas that directly benefit assessed parcels. This Engineer’s Report (the “Report”) has been prepared pursuant to Chapter 1, Article 4 of the 1972 Act, and presented to the City Council for their consideration and approval of the improvements and services to be provided within the District and the levy and collection of the assessments related thereto to fund the special benefit costs and expenses required to service and maintain designated landscape improvements within the District commencing in Fiscal Year 2025/2026. This Report outlines the District structure, the improvements, and the proposed assessments to be levied in connection with the special benefits the properties within the District will receive from the maintenance and servicing of the improvements. The annual assessments to be levied on properties within the District will provide a funding source for the continued operation and maintenance of the landscaping improvements, which provide special benefits to the properties within the District. The word “parcel,” for the purposes of this Report, refers to an individual property assigned its own Assessor’s Parcel Number (“APN”) by the Los Angeles County Assessor’s Office. The Los Angeles County Auditor/Controller uses APNs and specific Fund Numbers to identify properties to be assessed on the tax roll for the District assessments. The estimated cost of the improvements and the proposed annual assessments budgeted and assessed against properties within the District each fiscal year may include, but are not limited to the estimated expenditures for regular annual maintenance and repairs; incidental expenditures related to the operation and administration of the District; the collection of funds for operational reserves or for periodic maintenance and improvement rehabilitation projects; deficits or surpluses from prior fiscal years; and revenues from other sources as authorized by the 1972 Act. Each parcel is to be assessed proportionately for only those improvements, services and expenses for which the parcel will receive special benefit. 254
Fiscal Year 2025/2026 Landscape Maintenance Assessment District Page 2 HISTORICAL INFORMATION The District was formed and assessments first levied in 1978 following the passage of Resolution No. 78-78 by the City Council. The plans and specifications for the improvements within the District are on file with the Director of Public Works/City Engineer and are incorporated herein by reference. Assessments for the District have not been adjusted since Fiscal Year 1998/1999, at which time the rates were decreased from $1.97 per front foot (FF) to $1.90 per FF for both residential and commercial properties. Furthermore, energy and maintenance costs have increased over the last 20 years, while the assessment rates have remained the same. As such, the District no longer collects sufficient funds to adequately fund its operations. Over the last several years the General Fund has subsidized the District’s operations, but in the future this subsidy may not be available. CHANGES TO THE DISTRICT FOR FISCAL YEAR 2025/2026 In consideration of the current state of the District an increase in assessment is proposed for Fiscal Year 2025/2026. The proposed assessment increase amounts to $6.555 per front foot. To ensure the District’s long-term ability to maintain improvements amidst rising costs particularly those related to utilities and inflation, the proposed maximum shall incorporate an annual inflationary adjustment. This adjustment will be based on changes to the Consumer Price Index (“CPI”) specific to the Los Angeles-Long Beach-Anaheim region. The inflationary adjustment, also referred to as Assessment Range Formula, and the proposed balloting budget are further described in Part III of this Report. In accordance with Proposition 218 (Articles XIIIC and XIIID of the California Constitution), the proposed assessment increase will be submitted to the property owners through a mailed ballot procedure. Ballots will be mailed to all property owners in the District and shall be tabulated following the conclusion of the Public Hearing. The outcome of the balloting process will determine whether the proposed assessment increased is approved. A detailed explanation of the balloting process is provided in the subsequent subsection of this report. BALLOT PROCESS Pursuant to the provisions of Article XIIID, Section 4 of the California Constitution, and in accordance with the provisions of Government Code, Section 53753, the City shall conduct a property owner protest ballot proceeding (“Ballot Proceeding”) for the proposed levy of new/increased assessments as described in this Report. In conjunction with this Ballot Proceeding, the City Council will conduct a noticed public hearing to consider public testimonies, comments, and written protests regarding the establishment of the proposed assessments. Upon conclusion of the public hearing, property owner protest ballots received 255
Fiscal Year 2025/2026 Landscape Maintenance Assessment District Page 3 will be opened and tabulated to determine whether majority protest exists as defined in Article XIIID of the California Constitution. As specified by the California Constitution, Article XIIID Section 4e: “A majority protest exists if, upon the conclusion of the hearing, ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessment. In tabulating the ballots, the ballots shall be weighted according to the proportional financial obligation of the affected property.” After completion of the ballot tabulation, the City Council will confirm the results of the balloting. If majority protest exists for the proposed assessments, further proceedings to implement the new/increased assessments shall be abandoned at this time. If tabulation of the ballots indicate that majority protest does not exist for the proposed assessments and the assessment range formula presented and described herein, the City Council may adopt this Report (as submitted or amended); approve the district diagram(s) contained herein; direct the improvements to be made; and confirm and approve the levy and collection of the assessments as outlined in this Report. The assessment rates and method of apportionment described in this Report, as approved or modified by the City Council, define the initial maximum assessment applicable to the parcels within the District as of Fiscal Year 2025/2026. The assessments so authorized, including the assessment range formula shall establish the authorized maximum assessments for subsequent fiscal years. An annual Engineer’s Report shall continue to be prepared, as has been done in prior years, and presented to the City Council to address any proposed changes to the District. This includes any proposed annexations initiated through the Los Angeles County Local Agency Formation Commission (LAFCO), as well as updates to improvements, budgets or assessments applicable for that fiscal year. The City Council will annually hold a noticed public hearing regarding these matters prior to approving and ordering the levy of assessments for the upcoming fiscal year. The assessments as approved and ordered will be submitted to the Los Angeles County Auditor/Controller for inclusion on the property tax roll for each affected parcel for that fiscal year. Such assessments shall not exceed the annually adjusted maximum assessments authorized herein unless the proposed new or increased assessment is approved by the property owners through a Ballot Proceeding. REPORT CONTENT This Report has been prepared in connection with the levy of assessments associated with the Landscape Maintenance Assessment District for Fiscal Year 2025/2026, pursuant to a resolution of the City Council and consists of the following five (5) parts. Part I – Plans and Specifications This section provides a general description of the District and the improvements for which parcels are to be assessed. The proposed assessments as outlined in this Report are based on the improvements and appurtenant facilities that will provide a special benefit to the 256
Fiscal Year 2025/2026 Landscape Maintenance Assessment District Page 4 properties within the District and generally consist of landscaping and operational expenses authorized pursuant to the 1972 Act. The plans and specifications contained in this Report generally describe the nature and extent of the improvements. In conjunction with these descriptions of the improvements, an overall visual depiction of the District boundaries have been provided within the District Diagram contained in Part IV of this Report. More detailed information regarding the specific plans and specifications associated with the District improvements are on file with the City of Lynwood and by reference are made part of this Report. Part II – Method of Apportionment This section includes a discussion of the general and special benefits associated with the various improvements to be provided within the District (Benefit Analysis), which includes a discussion of the proportional costs of the special benefits and a separation of costs considered to be of general benefit (and therefore not assessed). This section of the Report also outlines the method of calculating each property’s proportional special benefit necessary to calculate the annual assessments. Part III – Estimate of Costs This section establishes an estimate of the annual costs (referred to as the “budget”) to operate, maintain, and service the landscaping and appurtenant facilities. This budget includes an estimate of the maintenance costs and incidental expenses including, but not limited to labor, materials, utilities, equipment, and administration expenses as well as the collection of other appropriate funding authorized by the 1972 Act. Those improvements and/or costs determined to be of general benefit shall be funded by a City contribution and are excluded from the amount to be assessed as special benefit. The proposed new or increased maximum assessment rates (the “Maximum Assessment Rate Per FF”) outlined in this section establish the initial maximum assessment beginning in Fiscal Year 2025/2026. These rates will be subject to annual adjustments based on the Assessment Range Formula as further detailed in this section of the Report. The maximum assessment amount to be included on the ballot for each parcel is determined using actual and forecasted expenses each fiscal year, along with the Assessment Methodology described in “Part II – Method of Apportionment” of this Report. Each fiscal year, an estimate of the costs required to provide maintenance and administrative services for the District is prepared and detailed in an Engineer’s Report filed with the City Clerk. These annual costs are based on the estimated net special benefit expenses for operating, maintaining, and servicing the improvements during that fiscal year, along with any funds to be collected for authorized reserves and/or installment payments for costs that cannot be reasonably recovered in a single year’s assessment. The resulting assessment rates (the “Assessment Per Front Foot”) identified in the Engineer’s Report and approved annually by the City Council establish the proposed assessments to be levied and collected for that fiscal year. 257
Fiscal Year 2025/2026 Landscape Maintenance Assessment District Page 5 Part IV – District Diagram This section of the Report contains a diagram(s) showing the boundaries of the District as of Fiscal Year 2025/2026 which incorporates each of the parcels determined to receive special benefits from the various District improvements proposed. The lines and dimensions of each lot, parcel, and subdivision of land contained in the diagram is inclusive of all parcels listed in “Part V – Assessment Roll” of this Report and the corresponding County Assessor’s Parcel Maps for said parcels as they existed at the time this Report was prepared and shall include all subsequent subdivisions, lot-line adjustments, or parcel changes therein. Reference is hereby made to the Los Angeles County Assessor’s maps for a detailed description of the lines and dimensions of each lot and parcel of land within the District. Part V – Assessment Roll This section contains a listing of the parcels within the District outlining both the “Balloted Maximum Assessment” and the “Current Assessment” dollar amounts for each parcel. The “Balloted Maximum Assessment” represents the maximum amount that may be levied on each parcel as of Fiscal Year 2025/2026, based on the parcel’s calculated proportional special benefit as outlined in “Part II – Method of Apportionment,” and the assessment rates established by the budgets in “Part III – Estimate of Costs.” The “Current Assessment” reflects the amount proposed to be levied for the applicable fiscal year if balloting efforts fail, based on the improvements and estimated expenses at that time and identified in an annual Engineer’s Report. While the Current Assessment is presented, it is insufficient to fully sustain the ongoing maintenance and operation of the improvements, and as a result, places an adverse financial burden on the City’s General Fund. If any section, subsection, subdivision, sentence, clause, phrase, portion, or zone of this Report is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining provisions of the Report and each section, subsection, subdivision, sentence, clause, phrase, portion, or zone thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, portions, or zones might subsequently be declared invalid or unconstitutional. 258
Fiscal Year 2025/2026 Landscape Maintenance Assessment District Page 6 PART I – PLANS AND SPECIFICATIONS DESCRIPTION OF THE DISTRICT The Landscape Maintenance Assessment District is coterminous with the City boundaries and is comprised of all parcels within the City of Lynwood. The territory within the District consists of the lots or parcels of land shown within the Assessment Diagram contained herein in “Part IV – District Diagram,” which is inclusive of all parcels listed in “Part V – Assessment Roll” of this Report and the corresponding County Assessor’s Parcel Maps for said parcels as they existed at the time this Report was prepared. IMPROVEMENTS AUTHORIZED BY THE 1972 ACT As applicable or may be applicable to this 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 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 (22535). Incidental expenses include all of the following: • The costs 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. 259
Fiscal Year 2025/2026 Landscape Maintenance Assessment District Page 7 Section 22351 of the1972 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: • 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. Section 22538 of the 1972 Act defines “service” or “servicing” to mean the furnishing of: • Electric current or energy, gas, or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements. • Water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other improvements. DISTRICT IMPROVEMENTS The improvements maintained and operated within the District include landscaping and appurtenant facilities located in and along public streets and sidewalks, including street trees, medians, parkways, and related irrigation systems. These improvements also include the maintenance of landscaped areas adjacent to and appurtenant to water well sites, provided such landscaping confers a special benefit to surrounding parcels. The District may also include the installation and maintenance of previously approved landscaping and appurtenant facilities within public rights-of-way or areas that directly benefit assessed parcels. The landscape improvements maintained by the District are generally described as follows. Parkways – Maintenance and servicing of parkway sections located along: • Hulme Avenue • Lilita Street • Norton Avenue • Santa Fe Avenue • Abbott Road • State Street • Flower Street • Los Flores Street • Century Boulevard • Lyndora Street • Atlantic Avenue 260
Fiscal Year 2025/2026 Landscape Maintenance Assessment District Page 8 Street Medians – Mowing, edging, irrigation, trash pick-up and eradicating pests in the following locations: • State Street; 170,000 square feet • Imperial Highway; 37,740 square feet • Atlantic Avenue; 94,472 square feet • Hulme Avenue; 2,160 square feet • Lilita Street; 1,620 square feet • Carlin Avenue; 1,530 square feet • Los Flores Boulevard; 36,800 square feet • Flower Street; 36,800 square feet • Bullis Road; 3,888 square feet • Santa Fe Avenue; 3,000 square feet Water Wells – Mowing, edging, weeding and irrigation. • Five locations; 10,750 square feet Tree Trimming – Two-year cycle general tree trimming, and in-house light tree trimming and emergency response services. 261
Fiscal Year 2025/2026 Landscape Maintenance Assessment District Page 9 PART II – METHOD OF APPORTIONMENT LEGISLATIVE AUTHORITY AND PROVISIONS 1972 Act The 1972 Act permits the establishment of assessment districts by agencies for the purpose of providing certain public improvements, including the acquisition, construction, installation and servicing of landscaping and lighting improvements and related facilities. The 1972 Act requires that the cost of these improvements be levied according to benefit rather than assessed value. Section 22573 defines the net amount to be assessed as follows: “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.” The formulas used for calculating assessments reflect the composition of parcels within the District and the improvements and activities to be provided and have been designed to fairly apportion the cost of providing those improvements based on a determination of the proportional special benefits to each parcel, consistent with the requirements of the 1972 Act and the provisions of Article XIIID of the California Constitution (Proposition 218). California Constitution The costs to operate and maintain the District improvements are identified and allocated to properties within the District based on special benefit. The improvements provided and for which properties are to be assessed are identified as landscaping improvements and related amenities that were installed in connection with the development of the properties and/or would otherwise be required for the development of properties. The District assessments and method of apportionment are based on the premise that these improvements would otherwise not have been required without the development or planned development of those parcels. Article XIIID Section 2d defines District as follows: “District means an area determined by an agency to contain all parcels which will receive a special benefit from a proposed public improvement or property-related service.” Article XIIID Section 2i defines Special Benefit as follows: “Special benefit means a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large. General enhancement of property value does not constitute “special benefit.” Article XIIID Section 4a defines Proportional Special Benefit assessments as follows:
262
Fiscal Year 2025/2026 Landscape Maintenance Assessment District Page 10 “An agency which proposes to levy an assessment shall identify all parcels which will have a special benefit conferred upon them and upon which an assessment will be imposed. The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the property related service being provided. No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.” BENEFIT ANALYSIS The improvements provided by this District and for which properties will be assessed have been identified as necessary, desired and/or required for the District to operate successfully. Special Benefits Proper construction, installation, maintenance and servicing of median islands, retention basins, street trees, parkway landscaping and other public landscape features provide distinct and particular benefits to parcels within the boundaries of the District. These improvements contribute to an aesthetically enhanced environment, promote air purification, support sound attenuation, and improve the overall visual quality and usability of the public spaces adjacent to assessed parcels. The ongoing maintenance of these landscaped areas supports the safe and efficient operation of the City’s public streets and sidewalks. This maintenance ensures that the improvements remain functional, attractive, and do not fall into disrepair, which could diminish neighborhood character and property values. The landscape improvements funded through the District are closely integrated with the physical and functional environment of the parcels assessed. Although these improvements are visible to the general public or properties outside the District, it is the parcels within the District that directly benefit from their proximity to and direct use of these improvements. If these improvements were not adequately maintained, the aesthetic and functional burdens would be borne disproportionately by those properties within the District’s boundaries. Accordingly, the maintenance and operation of these landscape improvements provide a special benefit to the assessed parcels by improving aesthetics, enhancing property utility, and contributing to a safer and more appealing community environment. These benefits are distinct from general benefits provided to the public at large and are directly attributable to the parcels assessed within the District. General Benefits In reviewing the location, scope, and nature of the landscaped improvements to be maintained through District assessments, it is evident that these improvements are either directly associated with the development of the parcels within the District or have been installed to support and enhance the usability and value of those properties. While many 263
Fiscal Year 2025/2026 Landscape Maintenance Assessment District Page 11 of these improvements are located on public rights-of-way and are visible or accessible to the general public, the ongoing maintenance and enhanced service levels provided through the District are intended to benefit, and are required solely for the advantage of, the parcels within the District. Although the general public may incidentally pass by or view these improvements, such access does not confer a measurable or direct benefit. The level of care, frequency of maintenance, and aesthetic enhancements provided by the District exceed basic public safety standards and are not necessary for use or enjoyment by the general public. The primary and particular impact of these improvements lies in their immediate proximity and aesthetic or functional connection to the assessed parcels—contributing to property value, community character, and quality of life in ways that do not extend broadly to the public at large. In the absence of the District, the City would only provide a baseline level of maintenance funded through the General Fund. This baseline would be limited to activities necessary to protect public safety and infrastructure, including emergency tree trimming, weed abatement, rodent control, and erosion prevention. These minimal services are aimed solely at reducing liability and maintaining basic functionality of public spaces and would not include the regular and enhanced landscape maintenance provided under the District. Any general benefit resulting from the improvements maintained by the District is limited to incidental visibility or passive enjoyment by members of the public traveling through or adjacent to the District, and such benefit does not contribute directly to the use, enjoyment, or value of properties outside the District boundaries. These general benefits are minimal and have been reasonably separated from the calculation of assessments, with their associated costs to be funded by non-assessment revenue sources, such as the City’s General Fund. To further support the determination that general benefits are minimal, it is important to recognize that Lynwood is a predominantly residential and fully developed community where the improvements maintained by the District—such as street trees and landscaped medians and parkways, are primarily adjacent to and serve the specific parcels being assessed. The City does not contain large regional attractions or facilities that would draw significant non-resident use of these improvements. Public exposure to these features is typically limited to brief, incidental views by passersby on local and arterial streets. As such, the benefits provided to the general public are indirect, non-exclusive, and secondary to the particular and distinct benefits received by the parcels within the District. ASSESSMENT METHODOLOGY Since the street trees and medians are evenly distributed along the public streets and other landscaped facilities are evenly distributed throughout the District, all properties within the District are located within a single zone. The front foot of each benefited property is used as the base for distributing the overall costs in proportion to the estimated benefits to be received by each assessable parcel from the improvements, regardless of land use. 264
Fiscal Year 2025/2026 Landscape Maintenance Assessment District Page 12 PART III – ESTIMATE OF COSTS There are 10,061 residential and commercial parcels within the District with approximately 563,771.46 front foot (FF), excluding parcels of public property which are not assessed for the costs of improvements and paid for through the City’s General Fund. No. of Assessable Parcels Total Front Footage Current Rate Estimated Assessment Revenue Proposed Balloted Maximum Assessment Rate
Estimated Assessment Revenue Balloting 10,061 563,771.46 $1.90 $1,071,166.07 $6.555 $3,695,473.06 Note: Totals may not sum due to rounding. If the District rates remain the same for Fiscal Year 2025/2026, the estimated year-end balance, based on current staffing levels, will be at a deficit. CAPITAL IMPROVEMENT COSTS In the past, public interest and safety required that Capital Improvement Projects be constructed on an expedited basis. The cost of such capital improvements exceeded the amount that could be conveniently raised in a single assessment. Pursuant to Section 22662(b) of the 1972 Act, the City entered into an agreement whereby the District received an advance of $2,467,850 from the City for deposit to the improvement fund. Such advance was to be repaid to the City through the levy and collection of annual assessments for these improvements over a period of twenty (20) years commencing with Fiscal Year 1992/1993, and was proposed to continue until the loan was paid. With the 2003 bond refinancing, the annual installment was $238,450. Since Fiscal Year 2015/2016 this installment no longer applies. There are no scheduled Capital Improvement Projects for Fiscal Year 2025/2026. DISTRICT BUDGET FOR CURRENT & ESTABLISHMENT OF NEW/INCREASED MAXIMUM ASSESSMENTS The budget provided on the following page herein provides the current assessment rate per front foot and also shows a budget that establishes the initial new/increased Maximum Assessment per front foot (Maximum Assessment Rate) for Fiscal Year 2025/2026. The Maximum Assessment Rate has been or will be presented to the property owners of record within the District as part of the Ballot Proceeding. Reference is hereby made to the assessment roll included herein as Part V for the individual maximum assessment amounts balloted for each parcel. 265
Fiscal Year 2025/2026 Landscape Maintenance Assessment District Page 13
Note: The assessment rate is the actual amount charged to property owners for the fiscal year, based on the approved budget and service levels. The maximum rate is the highest amount that may be levied without further voter approval. The assessment rate may vary each year but cannot exceed the maximum rate unless formally increased through a Proposition 218 process.
Direct Expenses
Annual Operation and Maintenance Annual Budget Balloted Budget Maintenance Cost
Landscape Maintenance and Equipment 548,788.31$ 548,788.31$ Trees 1,067,484.26 1,067,484.26
Personnel 1,455,373.60 1,455,373.60
Rental/ Repairs 26,000.00 26,000.00
Sub-Total Maintenance Cost $ 3,097,646.17 $ 3,097,646.17 Utility Cost
Electricity 12,360.00$ 12,360.00$ Water 157,422.00 157,422.00 Sub-Total Utility Cost $ 169,782.00 $ 169,782.00 Total Direct Expenses 3,267,428.17$ 3,267,428.17$
Incidental Expenses
Administration
Administration Services 24,715.24$ 24,715.24$ General Admin/Legal Fees 18,100.00 18,100.00 Contract Admin Services 5,750.00 5,750.00 County Auditor/Controller Fee 2,565.25 2,565.25 Total Administration 51,130.49$ 51,130.49$ Total Indirect Expenses 51,130.49$ 51,130.49$
Reserve/Deficit RecoveryOperational Reserve Collection -$ -$ Deficit Recovery - 1,357,142.86 $ 1,357,142.86
Total Annual Expenses (All) 3,318,558.66$ 4,675,701.51$ General BenefitLandscaping General Benefit Contribution 659,983.17$ 659,983.17$ Trees General Benefit Contribution 320,245.28 320,245.28 General Benefit Total 980,228.45$ 980,228.45$ General Fund or Other Sources Contribution 1,267,164.14$ -$ Balance to Levy 1,071,166.07$ 3,695,473.06$
Assessed parcels 10,061 10,061 FF 563,771.46 563,771.46 Assessment Rate FF 1.90$ 6.555$ Max Rate per FF 1.90$ 6.555$
Fund Balances
Fund Balance 6/30/2025 (9,051,765.000)$ (9,051,765.000)$ Reserve Fund In -$ -$
Reserve Fund Out -$ -$
General Fund /Deficit Recovery (1,267,164.140)$ 1,357,142.857$ Fund Balance 6/30/2026 (10,318,929.140)$ (7,694,622.143)$ City of Lynwood Landscape District Budget FY2025/26
266
Fiscal Year 2025/2026 Landscape Maintenance Assessment District Page 14 Assessment Range Formula Any new or increased assessment requires certain noticing and meeting requirements by law. The Brown Act defines the terms “new or increased assessment” to exclude certain conditions. These certain conditions included “any assessment that does not exceed an assessment formula or range of assessments previously adopted by the agency or approved by the voters in the area where the assessment is imposed.” To account for the anticipated annual increase in the cost of providing maintenance and operational services, the maximum assessment amounts and rates established for Fiscal Year 2025/2026 will be subject to an automatic annual adjustment. This adjustment shall be the greater of three percent (3.0%) or the percentage change in the Consumer Price Index (CPI) for the Los Angeles-Long Beach-Anaheim area, measured as of January of each succeeding year. This mechanism ensures that the maximum assessment rates remain aligned with inflationary cost increases while providing a minimum annual escalation to support service continuity. The annual adjustment was authorized by property owners through the Proposition 218 protest ballot proceeding and does not require further voter approval. The adoption of the maximum assessment rates and the Assessment Range Formula described herein does not mean that the annual assessments will necessarily increase each fiscal year. Although the maximum assessment rates that may be levied shall be adjusted (inflated) by the greater of 3% or CPI each year, the actual amount to be assessed will be based on the Balance to Levy for that fiscal year. If the calculated assessment is less than the adjusted maximum assessment, then the calculated assessment may be approved by the City Council for collection. Otherwise, it would be necessary to reduce the budget or provide a contribution from the City to reduce the Balance to Levy (amount to be assessed) to an amount that can be supported by an assessment rate less than or equal to the maximum assessment rate authorized for that fiscal year. The Assessment Range Formula (annual CPI adjustment) shall be applied to the maximum assessment rates identified in the District Budget establishing the Maximum Rate per FF within the Balloted Budget column as presented in this Report, commencing in Fiscal Year 2026/2027 and all subsequent fiscal years unless the City Council formally suspends its application. 267
Fiscal Year 2025/2026 Landscape Maintenance Assessment District Page 15 PART IV – DISTRICT DIAGRAM A diagram of the District is provided below and is a visual depiction of the District’s boundaries. The combination of the Diagram and the Assessment Roll contained in Part V of this Report constitutes the Assessment Diagram for this District and encompasses all of the lots, parcels and subdivisions of land that receive, or will receive, a special benefit from the improvements to be provided in the District at the time this Report was prepared. Reference is hereby made to the Los Angeles County Assessor’s Parcel Maps for a detailed description of the lines and dimensions of each parcel within the District including all subsequent subdivisions, lot-line adjustments, or parcel changes therein.
268
Fiscal Year 2025/2026 Landscape Maintenance Assessment District Page 16 PART V – ASSESSMENT ROLL In compliance with the 1972 Act, copies of the County Assessor’s Map and the County Tax Collector’s tax rolls were utilized to draft this Report. The Assessment Roll, for each parcel of land therein, shows the legal description; the County Assessor’s code numbers; the assessable front foot used to calculate the assessment for each parcel; and the total net assessment levied against the parcels for Fiscal Year 2025/2026. The Assessment Roll is on file in the Office of the City Engineer and is incorporated herein by reference. 269
1 RESOLUTION NO. _____________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, CALIFORNIA,
INITIATING PROCEEDINGS FOR THE ANNUAL LEVY OF ASSESSMENTS AND
BALLOTING PROCEDURES TO LEVY PROPOSED NEW OR INCREASED
ASSESSMENTS FOR THE CITY OF LYNWOOD LANDSCAPE MAINTENANCE ASSESSMENT DISTRICT FOR FISCAL YEAR 2025/ 2026 PURSUANT TO THE PROVISIONS OF PART 2 OF DIVISION 15 OF THE CALIFORNIA STREETS AND
HIGHWAY CODE AND ORDERING THE ENGINEER TO PREPARE AND FILE AN ENGINEER’S REPORT
WHEREAS, the City Council has, by previous Resolutions, formed the Lynwood Landscape Maintenance Assessment District (hereafter referred to as “District”) pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the “Act”) that provides for levy and collection of assessments by the County of Los Angeles for landscape maintenance services; and
WHEREAS, the improvements maintained and operated within the District include landscaping and appurtenant facilities located in and along public streets and sidewalks, including street trees, medians, parkways, and related irrigation systems. These improvements also include the maintenance of landscaped areas adjacent to and appurtenant to water well sites, provided such landscaping confers a sp ecial benefit to surrounding parcels. The District may also include the installation and maintenance of previously approved landscaping and appurtenant facilities within public rights -of-way or areas that directly benefit assessed parcels.
WHEREAS, the annual Engineer’s Report describes the existing improvements or substantial changes, including those improvements to be maintained; and
WHEREAS, assessments pay for the maintenance and services of landscaping, and all appurtenant facilities and operations related thereto; and
WHEREAS, the City Council proposes to establish the levy and collection of assessments by the County on behalf of the City of Lynwood to pay for these services.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, PROCLAIM, ORDER, AND RESOLVE AS FOLLOWS:
Section 1. All of the above recitals are true and correct and incorporated herein by reference.
Section 2. The City Council of the City of Lynwood proposes the annual levy including proposed balloting for new or increased assessments within the City of Lynwood Landscape Maintenance Assessment District pursuant to the Landscaping and Lighting Act of 1972 and Proposition 218.
270
2 Section 3. The City Council hereby orders Willdan Financial Services to prepare the Engineer’s Report concerning the levy of assessments for the District in accordance with Chapter 3, Section 22622 of the Act.
PASSED, APPROVED and ADOPTED this 3rd day of June, 2025.
_______________________________
Rita Soto
Mayor
ATTEST:
__________________________ _________________________________ Maria Quiñonez Julian Lee
City Clerk City Manager
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
__________________________ _________________________________ Noel Tapia Ahmad Ansari
City Attorney Interim Director of Public Works/City Engineer
271
3 STATE OF CALIFORNIA )
) §
COUNTY OF LOS ANGELES )
I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the above and foregoing resolution was duly adopted by the City Council of the City of Lynwood at a regular meeting held in the City Hall of said City on the day of _______________, ______, and passed by the following vote:
AYES:
NOES:
ABSENT:
_________________________________
City Clerk, City of Lynwood
272
1 RESOLUTION NO.______________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, CALIFORNIA,
DECLARING ITS INTENTION TO ORDER THE LEVY AND COLLECTION OF ANNUAL
ASSESSMENTS AND TO BALLOT PROPERTY OWNERS FOR FISCAL YEAR 2025/2026 WITHIN THE LYNWOOD LANDSCAPE MAINTENANCE ASSESSMENT DISTRICT PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972 (COMMENCING WITH STREETS AND HIGHWAYS CODE SECTION 22500 ET SEQ.)
AND FIXING THE TIME AND PLACE FOR HEARING PROTESTS AND OBJECTIONS AS AUGUST 5, 2025
WHEREAS, the City Council has, by previous Resolutions, formed the Lynwood Landscape Maintenance Assessment District (the “District”) and initiated proceedings for the Fiscal Year 2025/2026 annual process along with property owner protest balloting procedures for the District pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the “Act”) that provi des for the levy and collection of assessments by the County of Los Angeles for the City of Lynwood to pay the maintenance and servicing of the landscaping improvements and facilities related thereto; and
WHEREAS, the District and the associated assessme nts are in compliance with the provisions of California Constitution Article XIIID; and
WHEREAS, the City Council has retained Willdan Financial Services to prepare and file an Engineer’s Report with the City Clerk for the purposes of establishing ongoing annual assessments in accordance with the Act and the provisions of the California Constitution, Article XIIID.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, PROCLAIM, ORDER, AND RESOLVE AS FOLLOWS:
Section 1. The City Council of the City of Lynwood hereby finds and declares that the foregoing recitals are true and correct and incorporates them herein as findings and as a substantive part of this Resolution.
Section 2. Pursuant to the Landscaping and Lighting Act of 19 72, commencing with Streets and Highways Code Section 22500 et seq., the City Council of the City of Lynwood hereby declares its intention to order the levy and collection of assessments and the balloting for new or increased assessments against the assess able lots and parcels of land within an existing assessment district designated as Lynwood Landscape Maintenance Assessment District (the “District”) for Fiscal Year 2025/2026 to pay for the increasing costs of existing and previously proposed improvements described as:
“The installation, maintenance, and servicing of existing and previously proposed landscaping and appurtenant facilities within landscaped areas within public rights-of-way and City-owned property in the City of Lynwood. Such improvements include landscaping 273
2 and appurtenant facilities located in and along public streets and sidewalks, including street trees, medians, parkways, and related irrigation systems. These improvements also include the maintenance of landscaped areas adjacent to and appurtenant to water well sites, provided such landscaping confers a special benefit to surrounding parcels.
The District may also include the installation and maintenance of previously approved landscaping and appurtenant facilities within public rights -of-way or areas that directly benefit assessed parcels , which some improvements have been paid or are to be paid from the proceeds of revenue bonds.”
The boundaries of the District are conterminous with the boundaries of the City of Lynwood as shown on the map identified as Assessment District Map No. 2017-L on file in the office of the City Engineer.
Section 3. Reference is hereby made to the report of the Engineer ordered by the City Council on June 3, 2025, by resolution, and on file in the office of t he City Clerk, describing the improvements made, the maintenance and servicing thereof, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District.
Section 4. Notice is hereby given that on August 5, 2025, at 6:00 p.m., or as soon thereafter as the matter may be heard, in the Council Chambers of the City Hall Annex, 11350 Bullis Road, Lynwood, California, the City Council will conduct a public hearing to consider protests and objections to the levy and collection of the proposed assessments, for existing rates and the balloted new or increased rates for the District for Fiscal Year 2025/2026.
Pursuant to the Landscaping and Lighting Act of 1972 and Article XIIID of the California Constitution, only b allots that are properly returned will be counted toward determining whether a majority protest exists. A majority protest is deemed to exist if the assessment ballots submitted in opposition to the new or increased assessments represent more than 50 percent of the weighted ballots received. If such a majority protest exists, the new or increased assessments shall not be imposed. This hearing will determine whether the proposed new or increased assessments will be confirmed and levied upon the lots and parcels within the District.
A written or verbal protest by a property owner shall disclose a description sufficient to identify the property. All interested persons shall be afforded the opportunity to hear and be heard. The City Council shall consider all o ral statements and written protests or communications made or filed by an interested person.
The public hearing will be held in the City Council Chamber . The public may participate in person.
Information on the telephonic access to the City Council Meeting may change. To receive the most up -to-date information on whether the Public Hearing is accessible telephonically or via videoconferencing; and/or changes on the phone numbers as well as access code and password, will be included in the August 5, 2025 Agenda. Members 274
3 of the public may access this Agenda online by visiting the City of Lynwood’s website at www.lynwoodca.gov/, click ing on “Agendas & Minutes, ” select ing “Council Meeting Agenda Packet,” and selecting “Agenda August 5, 2025-Regular Meeting” to obtain the dial-in number and correlating access code. Members of the public may also use the following link: www.lynwoodca.gov/129/Agendas-Minutes.
Section 5. The City Clerk is hereby directed to cause notice of the passage of this resolution to be given at the time and place in the form and manner provided by law.
Section 6. The assessment rate for Fiscal Year 2025/2026 is proposed to remain at $1.90 per front foot for both residential and commercial properties if a majority protest is received against the proposed new or increased balloted assessment rate of $6.555 per front footage.
Section 7. Authorize the Mayor to execute the Resolution for and on behalf of the City of Lynwood.
Section 8 . This Resolution shall take full force and effect immediately upon adoption by the City Council.
PASSED, APPROVED and ADOPTED this 3rd day of June, 2025.
_______________________________
Rita Soto
Mayor
ATTEST:
__________________________ _________________________________ Maria Quiñonez Julian Lee
City Clerk City Manager
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
__________________________ _________________________________ Noel Tapia Ahmad Ansari
City Attorney Interim Director of Public Works/City Engineer
275
4 STATE OF CALIFORNIA )
) §
COUNTY OF LOS ANGELES )
I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the above and foregoing resolution was duly adopted by the City Council of the City of Lynwood at a regular meeting held in the City Hall of said City on the day of _______________, ______, and passed by the following vote:
AYES:
NOES:
ABSENT:
276
1 RESOLUTION NO. _____________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD , CALIFORNIA, PRELIMINARY APPROVAL OF THE ANNUAL ENGINEER’S REPORT
INCLUDING PROPOSED NEW OR INCREASED ASSESSMENTS FOR THE CITY OF
LYNWOOD LANDSCAPE MAINTENACE ASSESSMEN T DISTRICT PREPARED PURSUANT TO CALIFORNIA STREETS AND HIGHWAYS CODE, SECTION 22565 ET SEQ., AS ORDERED BY THE CITY COUNCIL ON JUNE 3, 2025
WHEREAS, the City Council has, by previous Resolutions, ordered the preparation of an Engineer’s Report (hereafte r referred to as the “Report”) including new and increased proposed assessments for the district known and designated as the Landscape Maintenance Assessment District (hereafter referred to as the “District”) pursuant to the provisions of the Landscaping a nd Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the “Act”); and
WHEREAS, Willdan Financial Services (as assessment engineer) has prepared and filed said Report with the City Clerk and the City Clerk has presented said Report to this City Council for consideration.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, PROCLAIM, ORDER, AND RESOLVE AS FOLLOWS:
Section 1. The City Counc il of the City of Lynwood hereby finds and declares that the foregoing recitals are true and correct and incorporates them herein as findings and as a substantive part of this Resolution.
Section 2. The City Council has considered said Report as filed an d is hereby approved.
Section 3. Said Report, including any plans and/or diagrams, estimates of costs and expenses and assessments shall be placed on file in the office of the City Clerk and may be examined by any interested persons.
Section 4. Authorize the Mayor to execute the Resolution for and on behalf of the City of Lynwood.
Section 5. This Resolution shall take full force and effect immediately upon adoption by the City Council.
277
2 PASSED, APPROVED and ADOPTED this 3rd day of June, 2025.
_______________________________
Rita Soto
Mayor
ATTEST:
__________________________ _________________________________ Maria Quiñonez Julian Lee
City Clerk City Manager
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
__________________________ _________________________________ Noel Tapia Ahmad Ansari
City Attorney Interim Director of Public Works/City Engineer
278
3 STATE OF CALIFORNIA )
) §
COUNTY OF LOS ANGELES )
I, the undersigned , City Clerk of the City of Lynwood, do hereby certify that the above and foregoing resolution was duly adopted by the City Council of the City of Lynwood at a regular meeting held in the City Hall of said City on the day of _______________, ______, and passed by the following vote:
AYES:
NOES:
ABSENT:
279
AGENDA STAFF REPORT
DATE:
June
3, 2025
TO:
Honorable Mayor and Members of the City Council
APPROVED BY:
Julian Lee, City Manager
PREPARED BY:
Harry Wong, Director of Finance and Administration
Ahmad Ansari, Interim Director of Public Works
SUBJECT:
FY 2025/2026 LYNWOOD LIGHTING ASSESSMENT DISTRICT
INITIATING PROCEEDINGS, DELARING INTENTION TO LEVY AND
BALLOT FOR NEW OR INCREASED ASSESSMENTS APPROVING THE
ENGINEER’S REPORT, AND SETTING THE DATE OF PUBLIC
HEARING
Agenda Item # 10.4.
Recommendation:
Staff recommends that the City Council adopt the attached resolutions entitled:
1 .
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, CALIFORNIA,
INITIATING PROCEEDINGS FOR THE ANNUAL LEVY OF ASSESSMENTS AND
BALLOTING PROCEDURES TO LEVY PROPOSED NEW OR INCREASED
ASSESSMENTS FOR THE LYNWOOD LIGHTING ASSESSMENT DISTRICT FOR FISCAL YEAR 2025/2026 PURSUANT TO THE PROVISIONS OF PART 2 OF DIVISION 15 OF THE CALIFORNIA STREETS AND HIGHWAY CODE AND ORDERING THE ENGINEER TO PREPARE AND FILE AN ENGINEER’S REPORT; 2 .
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, CALIFORNIA,
DECLARING ITS INTENTION TO ORDER THE LEVY AND COLLECTION OF ANNUAL
ASSESSMENTS AND TO BALLOT PROPERTY OWNERS FOR FISCAL YEAR 2025/2026 WITHIN THE LYNWOOD LIGHTING ASSESSMENT DISTRICT PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972 (COMMENCING WITH STREETS AND HIGHWAYS CODE SECTION 22500 ET SEQ.) AND FIXING THE TIME AND PLACE FOR HEARING PROTESTS AND OBJECTIONS AS AUGUST 5, 2025; AND
3 .
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, CALIFORNIA, PRELIMINARY APPROVAL OF THE ANNUAL ENGINEER’S REPORT INCLUDING
PROPOSED NEW OR INCREASED ASSESSMENTS FOR THE LYNWOOD LIGHTING City Council City Council Regular Meeting 280
ASSESSMENT DISTRICT PREPARED PURSUANT TO CALIFORNIA STREETS AND HIGHWAYS CODE, SECTION 22565 ET SEQ., AS ORDERED BY THE CITY COUNCIL ON JUNE 3, 2025.
Background:
The Lynwood Lighting Assessment District (“District”) was formed in 1981 under the Landscaping and Lighting Act of 1972. The cost of maintenance, including the assessment engineering costs and administration can be levied annually against the properties, which receive the benefits, thereby relieving the General Fund of those costs. Property owners are assessed only for the benefits received. The assessments were levied as a fair and equitable way to provide funds to maintain, operate and improve the lighting areas in the City. The plan and diagram 2017-A for the District are on file in the Office of the Director of Public Works for the City of Lynwood.
Discussion and Analysis:
On June 3, 2025, the City Council initiated proceedings and is scheduled to consider adopting a Resolution ordering the Engineer to prepare and file a report regarding the Lynwood Lighting Assessment District (District). The Engineer’s Report (Report), completed and prepared by Willdan Financial Services, is attached to this staff report (Attachment A). Willdan Financial Services is acting as the Assessment Engineer on behalf of the City of Lynwood.
There is a proposed increased assessment of $1.798 per front foot for Zone 1 residential and $3.241 per front foot for Zone 2 commercial, which is estimated to generate $1,156,794. The current assessment rate is $1.620 per front foot for Zone 1 and $3.010 per front foot for Zone 2 this results in a total assessment of $1,042,089 which will be collected if a majority protest exists for the new or increased assessment.
The estimated cost to operate the District for Fiscal Year (FY) 2025/2026 for direct and indirect expenses is $1,652,563. The estimated assessment revenue (Balance to Levy in Budget) for FY 2025/26 is $1,042,089 if things remain the same and $1,156,794 if no majority protest exist. The District’s estimated beginning fund balance for FY 2025/26 is $661,708. The District is projected to end FY 2025/26 with $712,259 in fund balance if the current rates are not increased and $826,964 if no majority protest exists. A majority protest balloting procedure is being held so that this District can remain whole.
The revenues have remained relatively flat, however, cost for services has increased. In 2017 the City entered into an Agreement with the Southern California Edison (SCE) to replace the existing street light fixtures with light emitting Diode (LED) street lighting fixtures that SCE City Council City Council Regular Meeting 281
owns. In 2019, the City entered into an Agreement with Go Green to retrofit City’s owned streetlights to LED. As of May 1, 2021, over 1,200 City owned streetlights have been converted to LED.
In 2019, the City entered into a low interest loan agreement with the State of California Energy Commission to fund the conversion of the City’s owned streetlights and external lights to LED.
The initial loan amount was $1,547,407 for this project.
The proposed FY 2025/26 District Cost includes the following cost categories:
Personnel, operations budget and administration for Street Lighting Division in the amount of $1,652,563 to keep operational cost within incoming revenues to avoid a structural deficit: and
Debt service in the amount of $133,910 toward the
loan agreement with the State of
California Energy Commission, initial loan amount $1,547,407.
Public Hearing
After the approval of the Engineer’s Report, staff recommends that the City Council sets the public hearing for August 5, 2025, at the hour of 6:00 p.m. or soon thereafter, in the Council Chambers of the City Hall Annex, 11350 Bullis Road, Lynwood, California, to hear protests and objections on the levy and collection of the proposed assessments (existing rates) against the lots and parcels of land within the District for FY 2025/2026.
Information on the telephonic access to the City Council Meeting may change. To receive the most updated information on whether the Public Hearing is accessible telephonically or videoconferencing; and/or changes on the phone numbers as well as access code and password, this information will be included in the August 5, 2025 Agenda. Members of the public may access this Agenda online by visiting the City of Lynwood’s website at www.lynwoodca.gov/
, clicking on “Agendas & Minutes,” selecting “Council Meeting Agenda Packet,” and selecting “Agenda August 5, 2025-Regular Meeting” to obtain the dial-in number and correlating access code. Members of the public may also use the following link:
www.lynwoodca.gov/129/Agendas-Minutes
.
Fiscal Impact:
City Council City Council Regular Meeting 282
FY 2526 Lynwood Lighting Engineer's Report to City updated 5.28.25.pdf Lighting Initiate Proceedings Resolution 1 to City.docx Lighting (Resolution-Intent) 2 to City.docx
Lighting (Resolution-Report) 3 to City.doc
The Report includes Direct and Indirect cost of $1,652,563 for the District for FY 2025/26. The estimated assessment amount that can be collected is $1,042,089 without balloting and $1,156,794 if no majority protest exists. The District is projected to end FY 2025/26 with $712,259 in fund balance if the current rates are not increased and $826,964 if no majority protest exists.
Future of the District and Adjustment for an Annual CPI Increase
The District provides essential services such as citywide lighting. The proposed budget for the Street Lighting Division was kept flat to keep on-going operations within incoming revenues.
Although, the City is doing its part to implement projects to conserve energy and reduce costs, other cost related to labor and materials and other capital improvement needs will continue to increase and may outpace revenues in the future. Assessment rates cannot be increased without a property owner ballot protest process.
There is a proposed new or increased assessment at a rate of $1.798 per front footage for Zone 1 and $3.341 per front foot for Zone 2. If the new or increased proposed assessment fails. The assessment rates will remain the same at $1.620 per front footage for Zone 1 residentially zoned properties and $3.010 per front footage for Zone 2 for commercially zoned properties. There is also a proposed annual inflationary adjustment based on the greater of 3% or Consumer Price Index (“CPI”) for the Los Angeles-Long Beach-Anaheim area as of January of each succeeding year.
Coordinated With:
City Manager’s Office
City Attorney’s Office
Department of Public Works
ATTACHMENTS:
Description
City Council City Council Regular Meeting 283
City of Lynwood Lighting Assessment District 2025/2026 ENGINEER’S REPORT Intent Meeting: June 3, 2025 Public Hearing: August 5, 2025 27368 Via Industria Suite 200 Temecula, CA 92590 T 951.587.3500|800.755.6864 F 951.587.3510|888.326.6864 Property Tax Information Line T. 866.807.6864 www.willdan.com 284
ENGINEER'S REPORT AFFIDAVIT Lynwood Lighting Assessment District City of Lynwood Los Angeles County, State of California This Report identifies the parcels within the Lighting Assessment District and all relevant zones therein, as they existed at the time of the passage of the Resolution of Intention. Reference is hereby made to the Los Angeles County Assessor’s maps for a detailed description of the lines and dimensions of parcels within the District. The undersigned respectfully submits the enclosed Report as directed by the City Council. Dated this ____________ day of ______________, 2025. Willdan Financial Services Assessment Engineer On Behalf of the City of Lynwood By: ________________________________ Stacee Reynolds Principal Consultant, District Administration Services By: ________________________________ Tyrone Peter PE # C 81888 285
TABLE OF CONTENTS INTRODUCTION .............................................................................................................. 1 Historical Information ............................................................................................................................... 2 Changes to the District for Fiscal Year 2025/2026 .................................................................................. 2 Ballot Process .......................................................................................................................................... 2 Report Content ......................................................................................................................................... 4 PART I – PLANS AND SPECIFICATIONS ..................................................................... 6 Description of the District ......................................................................................................................... 6 Improvements Authorized by the 1972 Act .............................................................................................. 6 Zones of Benefit ....................................................................................................................................... 7 District Improvements .............................................................................................................................. 8 PART II – METHOD OF APPORTIONMENT .................................................................. 9 Legislative Authority and Provisions ........................................................................................................ 9 Benefit Analysis ...................................................................................................................................... 10 Assessment Methodology ...................................................................................................................... 12 PART III – ESTIMATE OF COSTS ................................................................................ 13 Estimated Assessment Revenue ........................................................................................................... 13 Capital Improvement Costs .................................................................................................................... 13 Capital Improvement Projects ............................................................................................................... 13 District Budget for Current & Establishing New/Increased Maximum Assessments .............................. 13 PART IV – DISTRICT DIAGRAM .................................................................................. 16 PART V – ASSESSMENT ROLL .................................................................................. 17 286
Fiscal Year 2025/2026 Lighting Assessment District Page 1 INTRODUCTION The City of Lynwood (the “City”) under the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code (the “1972 Act”), and the provisions of the California Constitution Article XIIID (the “Constitution”), annually levies and collects special assessments for the City’s maintenance district designated as: Lynwood Lighting Assessment District (the “District”) in order to construct, install, maintain and service public lighting facilities and appurtenant facilities associated with and provide special benefits to properties within the District. This Engineer’s Report (the “Report”) has been prepared pursuant to Chapter 1, Article 4 of the 1972 Act, and presented to the City Council for their consideration and approval of the improvements and services to be provided within the District and the levy and collection of the assessments related thereto to fund the special benefit costs and expenses required to service and maintain designated lighting improvements within the District commencing in Fiscal Year 2025/2026. This Report outlines the District structure, the improvements, and the proposed assessments to be levied in connection with the special benefits the properties within the District will receive from the maintenance and servicing of the improvements. The annual assessments to be levied on properties within the District will provide a funding source for the continued operation and maintenance of the lighting improvements, which provide special benefits to the properties within the District and zones of benefit (“Zones”) established herein. Each Zone outlined in this Report is a reflection of the various improvements and the types of improvements and services provided by the District for the properties that are directly associated with and benefit from those improvements. The net annual cost to provide the improvements for each Zone are allocated to the benefiting properties within that Zone using a weighted method of apportionment (refer to Assessment Methodology in “Part II – Method of Apportionment”) that calculates the proportional special benefit and assessment for each parcel as compared to other properties that benefit from the District improvements and services. The word “parcel,” for the purposes of this Report, refers to an individual property assigned its own Assessor’s Parcel Number (“APN”) by the Los Angeles County Assessor’s Office. The Los Angeles County Auditor/Controller uses APNs and specific Fund Numbers to identify properties to be assessed on the tax roll for the District assessments. The estimated cost of the improvements and the proposed annual assessments budgeted and assessed against properties within the District each fiscal year may include, but are not limited to the estimated expenditures for regular annual maintenance and repairs; incidental expenditures related to the operation and administration of the District; the 287
Fiscal Year 2025/2026 Lighting Assessment District Page 2 collection of funds for operational reserves or for periodic maintenance and improvement rehabilitation projects; deficits or surpluses from prior fiscal years; and revenues from other sources as authorized by the 1972 Act. Each parcel is assessed proportionately for only those improvements, services and expenses for which the parcel will receive special benefit. HISTORICAL INFORMATION All assessable parcels of land within the District have been classified into one of two zones: Residential (Zone 1) and Commercial (Zone 2). Operation costs include those associated with energy and maintenance costs; as well as additional lighting needs and projects to comply with State mandated Assembly Bill (AB) 32. District assessments have not been adjusted since Fiscal Year 1992/1993, at which time the rates were decreased from $1.74 per front foot (FF) to $1.62 per FF for residential and from $3.24 per FF to $3.01 per FF for commercial. Energy and maintenance costs have increased over the last 20 years, while the assessment rates have remained the same. CHANGES TO THE DISTRICT FOR FISCAL YEAR 2025/2026 In response to the possibility that the District could be underfunded in future years, for Fiscal Year 2025/2026 an assessment increase is being presented to affected property owners. The proposed assessment increase amounts to $1.798 per FF for residential and $3.341 per FF for commercial. To ensure the District’s long-term ability to maintain improvements amidst rising costs particularly those related to utilities and inflation, the proposed maximum assessment shall incorporate an annual inflationary adjustment. This adjustment will be based on changes to the Consumer Price Index (“CPI”) specific to the Los Angeles-Long Beach-Anaheim region. The inflationary adjustment, also referred to as Assessment Range Formula, and the proposed balloting budget are further detailed in Part III of this Report. In accordance with Proposition 218 (Articles XIIIC and XIIID of the California Constitution), the proposed assessment increase will be submitted to the property owners through a mailed ballot procedure. Ballots will be mailed to all property owners in the District and shall be tabulated following the conclusion of the Public Hearing. The outcome of the balloting process will determine whether the proposed assessment increased is approved. BALLOT PROCESS Pursuant to the provisions of Article XIIID, Section 4 of the California Constitution, and in accordance with the provisions of Government Code, Section 53753, the City shall conduct a property owner protest ballot proceeding (“Ballot Proceeding”) for the proposed levy of new/increased assessments as described in this Report. In conjunction with this Ballot Proceeding, the City Council will conduct a noticed public hearing to consider public testimonies, comments, and written protests regarding the establishment of the proposed 288
Fiscal Year 2025/2026 Lighting Assessment District Page 3 assessments. Upon conclusion of the public hearing, property owner protest ballots received will be opened and tabulated to determine whether majority protest exists as defined in Article XIIID of the California Constitution. As specified by the California Constitution, Article XIIID Section 4e: “A majority protest exists if, upon the conclusion of the hearing, ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessment. In tabulating the ballots, the ballots shall be weighted according to the proportional financial obligation of the affected property.” After completion of the ballot tabulation, the City Council will confirm the results of the balloting. If majority protest exists for the proposed assessments, further proceedings to implement the new/increased assessments shall be abandoned at this time. If tabulation of the ballots indicate that majority protest does not exist for the proposed assessments and the assessment range formula presented and described herein, the City Council may adopt this Report (as submitted or amended); approve the district diagram(s) contained herein; direct the improvements to be made; and confirm and approve the levy and collection of the assessments as outlined in this Report. The assessment rates and method of apportionment described in this Report, as approved or modified by the City Council, define the initial maximum assessment applicable to the parcels within the District as of Fiscal Year 2025/2026. The assessments so authorized, including the assessment range formula shall establish the authorized maximum assessments for subsequent fiscal years. An annual Engineer’s Report shall continue to be prepared, as has been done in prior years, and presented to the City Council to address any proposed changes to the District. This includes any proposed annexations initiated through the Los Angeles County Local Agency Formation Commission (LAFCO), as well as updates to improvements, budgets or assessments applicable for that fiscal year. The City Council will annually hold a noticed public hearing regarding these matters prior to approving and ordering the levy of assessments for the upcoming fiscal year. The assessments as approved and ordered will be submitted to the Los Angeles County Auditor/Controller for inclusion on the property tax roll for each affected parcel for that fiscal year. Such assessments shall not exceed the annually adjusted maximum assessments authorized herein unless the proposed new or increased assessment is approved by the property owners through a Ballot Proceeding. 289
Fiscal Year 2025/2026 Lighting Assessment District Page 4 REPORT CONTENT This Report has been prepared in connection with the levy of assessments associated with the Lighting Assessment District for Fiscal Year 2025/2026, pursuant to a resolution of the City Council and consists of the following five (5) parts. Part I – Plans and Specifications This section provides a general description of the District and the improvements for which parcels are to be assessed. The proposed assessments as outlined in this Report are based on the improvements and appurtenant facilities that will provide a special benefit to the properties within the District and generally consist of lighting and operational expenses authorized pursuant to the 1972 Act. The plans and specifications contained in this Report generally describe the nature and extent of the improvements. In conjunction with the descriptions of the improvements, an overall visual depiction of the District boundaries are provided within the District Diagram contained in Part IV of this Report. More detailed information regarding the specific plans and specifications associated with the District improvements are on file with the City of Lynwood and by reference are made part of this Report. Part II – Method of Apportionment This section includes a discussion of the general and special benefits associated with the various improvements to be provided within the District (Benefit Analysis), which includes a discussion of the proportional costs of the special benefits and a separation of costs considered to be of general benefit (and therefore not assessed). This section of the Report also outlines the method of calculating each property’s proportional special benefit necessary to calculate the annual assessments. Part III – Estimate of Costs This section establishes an estimate of the annual costs (referred to as the “budget”) to operate, maintain, and service the street lighting and appurtenant facilities. This budget includes an estimate of the operation and maintenance costs and incidental expenses including, but not limited to labor, materials, utilities, equipment, and administration expenses as well as the collection of other appropriate funding authorized by the 1972 Act. Those improvements and/or costs determined to be of general benefit shall be funded by a City contribution and are excluded from the amount to be assessed as special benefit. The proposed new or increased maximum assessment rates (the “Maximum Assessment Rate Per FF”) outlined within this section establish the initial maximum assessment beginning in Fiscal Year 2025/2026. These rates will be subject to annual adjustments based on the Assessment Range Formula as further detailed within this section of the Report. The maximum assessment amount to be included on the ballot for each parcel is determined using actual and forecasted expenses each fiscal year, along with the Assessment Methodology described in “Part II – Method of Apportionment.” 290
Fiscal Year 2025/2026 Lighting Assessment District Page 5 Each fiscal year, an estimate of the costs required to provide maintenance and administrative services for the District is prepared and detailed in an Engineer’s Report filed with the City Clerk. These annual costs are based on the estimated net special benefit expenses for operating, maintaining, and servicing the improvements during that fiscal year, along with any funds to be collected for authorized reserves and/or installment payments for costs that cannot be reasonably recovered in a single year’s assessment. The resulting assessment rates (the “Assessment Per Front Foot”) identified in the Engineer’s Report and approved annually by the City Council establish the proposed assessments to be levied and collected for that fiscal year. Part IV – District Diagram This section contains a diagram showing the boundaries of the District, which incorporates each of the parcels determined to receive special benefits from the various District improvements proposed. The diagram also provides a visual depiction of the location and extent of the improvements to be maintained. The lines and dimensions of each lot, parcel, and subdivision of land contained in the diagram is inclusive of all parcels listed in “Part V – Assessment Roll” of this Report and the corresponding County Assessor’s Parcel Maps for said parcels as they existed at the time this Report was prepared and shall include all subsequent subdivisions, lot-line adjustments, or parcel changes therein. Reference is hereby made to the Los Angeles County Assessor’s maps for a detailed description of the lines and dimensions of each lot and parcel of land within the District. Part V – Assessment Roll This section contains a listing of the parcels within the District outlining both the “Balloted Maximum Assessment” and the “Current Assessment” dollar amounts for each parcel. The “Balloted Maximum Assessment” represents the maximum amount that may be levied on each parcel as of Fiscal Year 2025/2026, based on the parcel’s calculated proportional special benefit as outlined in “Part II – Method of Apportionment,” and the assessment rates established by the budgets in “Part III – Estimate of Costs.” The “Current Assessment” reflects the amount proposed to be levied for the applicable fiscal year if balloting efforts fail, based on the improvements and estimated expenses at that time and identified in the annual Engineer’s Report. While the Current Assessment is presented, it is insufficient to fully sustain the ongoing maintenance and operation of the improvements, and as a result, will likely place an adverse financial burden on the City’s General Fund in the near future. If any section, subsection, subdivision, sentence, clause, phrase, portion, or zone of this Report is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining provisions of the Report and each section, subsection, subdivision, sentence, clause, phrase, portion, or zone thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, portions, or zones might subsequently be declared invalid or unconstitutional. 291
Fiscal Year 2025/2026 Lighting Assessment District Page 6 PART I – PLANS AND SPECIFICATIONS DESCRIPTION OF THE DISTRICT The Lighting Assessment District is coterminous with the City boundaries and is comprised of all parcels within the City of Lynwood. The territory within the District consists of the lots or parcels of land shown within the Assessment Diagram contained herein in “Part IV – District Diagram,” which is inclusive of all parcels listed in “Part V – Assessment Roll” of this Report and the corresponding County Assessor’s Parcel Maps for said parcels as they existed at the time this Report was prepared. IMPROVEMENTS AUTHORIZED BY THE 1972 ACT As applicable or may be applicable to this 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 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 (22535). Incidental expenses include all of the following: • The costs 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. 292
Fiscal Year 2025/2026 Lighting Assessment District Page 7 • Costs associated with any elections held for the approval of a new or increased assessment. Section 22351 of the1972 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: • 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. Section 22538 of the 1972 Act defines “service” or “servicing” to mean the furnishing of: • Electric current or energy, gas, or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements. • Water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other improvements. ZONES OF BENEFIT The 1972 Act permits the establishment of assessment districts by agencies for the purpose of providing various landscaping and/or lighting improvements, including the acquisition, construction, installation, maintenance, and servicing of those improvements and related facilities. In addition, to ensure an appropriate allocation of the estimated costs to provide various improvements based on proportional special benefits, landscaping and lighting districts often times include benefit zones (“Zones”) as authorized pursuant to Chapter 1, Article 4, Section 22574 of the 1972 Act: “The diagram and assessment may classify various areas within an assessment 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 which will receive substantially the same degree of benefit from the improvements.” Parcels within the District have been classified into one of two zones: Residential (Zone 1) and Commercial (Zone 2). The corresponding assessment rate for each Zone is based upon the lumen range emitted by the street lights, affecting visibility and safety. 293
Fiscal Year 2025/2026 Lighting Assessment District Page 8 DISTRICT IMPROVEMENTS The District was established to collect funds to cover the expenses specific to energy and maintenance of streetlights within the City. The following table outlines the number of streetlights within the District, as well as their wattage, and distinguishes between those owned by Southern California Edison and those owned by the City. Residential properties are served by street lights with 7,000 to 15,000 lumens, while commercial is served by street lights with 20,000 to 55,000 lumens. Lumens Number of Southern California Edison Owned Number of City Owned Total 7,000 8 191 199 9,500 1,842 344 2,186 15,000 196 52 248 20,000 138 711 849 25,000 653 0 653 35,000 8 0 8 47,000 19 0 19 55,000 13 0 13 Total 2,877 1,298 4,175 294
Fiscal Year 2025/2026 Lighting Assessment District Page 9 PART II – METHOD OF APPORTIONMENT LEGISLATIVE AUTHORITY AND PROVISIONS 1972 Act The 1972 Act permits the establishment of assessment districts by agencies for the purpose of providing certain public improvements, including the acquisition, construction, installation and servicing of landscaping and lighting improvements and related facilities. The 1972 Act requires that the cost of these improvements be levied according to benefit rather than assessed value. Section 22573 defines the net amount to be assessed as follows: “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.” The formulas used for calculating assessments reflect the composition of parcels within the District and the improvements and activities to be provided and have been designed to fairly apportion the cost of providing those improvements based on a determination of the proportional special benefits to each parcel, consistent with the requirements of the 1972 Act and the provisions of Article XIIID of the California Constitution (Proposition 218). California Constitution The costs to operate and maintain the District improvements are identified and allocated to properties within each Zone within the District based on special benefit. The improvements provided and for which properties are to be assessed are identified as lighting improvements and related amenities that were installed in connection with the development of the properties and/or would otherwise be required for the development of properties within each respective Zone. The District assessments and method of apportionment are based on the premise that these improvements would otherwise not have been required without the development or planned development of those parcels. Article XIIID Section 2d defines District as follows: “District means an area determined by an agency to contain all parcels which will receive a special benefit from a proposed public improvement or property-related service.” Article XIIID Section 2i defines Special Benefit as follows: “Special benefit means a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large. General enhancement of property value does not constitute “special benefit.” 295
Fiscal Year 2025/2026 Lighting Assessment District Page 10 Article XIIID Section 4a defines Proportional Special Benefit assessments as follows: “An agency which proposes to levy an assessment shall identify all parcels which will have a special benefit conferred upon them and upon which an assessment will be imposed. The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the property related service being provided. No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.” BENEFIT ANALYSIS The improvements provided by this District and for which properties will be assessed have been identified as necessary, desired and/or required for the District to operate successfully. Special Benefits The street lighting improvements funded by this District provide a particular and distinct benefit to the properties within the boundaries of the City of Lynwood’s assessment district. These improvements include the operation, maintenance, and servicing of streetlights located throughout residential, commercial, and mixed-use areas of the City. The purpose of these improvements is to enhance visibility, safety, security, and nighttime accessibility for parcels fronting or otherwise functionally connected to illuminated streets and sidewalks. Street lighting directly improves the use, enjoyment, and desirability of individual parcels by: • Increasing nighttime safety for property owners, residents, employees, and customers accessing a parcel; • Reducing crime risk and enhancing security perception around homes, businesses, and parking areas; • Supporting parcel use during evening hours, especially for commercial, institutional, and multifamily residential parcels; and • Improving pedestrian and vehicle circulation in close proximity to properties, directly benefiting ingress, egress, and circulation associated with those parcels. The particular benefit conferred by street lighting is both functional and economic. It supports parcel value, tenant satisfaction, and commercial viability—particularly in mixed-use and business districts. These are benefits that are not received by the public at large or by parcels located outside the District and therefore qualify as special benefits under Proposition 218. 296
Fiscal Year 2025/2026 Lighting Assessment District Page 11 To ensure compliance with the constitutional requirement to separate general from special benefit, an analysis has been conducted to quantify the proportion of benefit received by the general public versus the assessed parcels. Based on usage patterns and the nature of Lynwood’s infrastructure, 60% of the total benefit provided by streetlight improvements is determined to be parcel-specific and therefore assessable as a special benefit. The remaining 40% of benefit, considered general in nature, is funded from non-assessment sources. In conclusion, the street lighting improvements maintained by the District provide a direct and measurable enhancement to the use and value of the parcels within the assessment area, and this enhancement constitutes a special benefit as defined by the California Constitution and the Landscaping and Lighting Act of 1972. General Benefits In accordance with the requirements of Article XIIID, Section 4 of the California Constitution (Proposition 218), the following provides a determination of the general benefit associated with the streetlight improvements maintained by the City of Lynwood’s District. The street lighting improvements within the District include the operation, maintenance, and servicing of lighting fixtures located along public rights-of-way throughout the City. These lights serve to enhance nighttime visibility, improve pedestrian and vehicular safety, and contribute to crime deterrence in both residential and commercial areas. While a significant portion of the benefit provided by street lighting is direct and particular to the parcels within the District—including increased safety, improved usability of adjacent spaces, and enhanced property value—there is also a portion of benefit that accrues to the general public, which must be accounted for separately. In the case of the City of Lynwood, the general benefit associated with street lighting is considered greater than minimal due to several factors: • The City includes major arterial roadways and collector streets that are regularly used by commuters and non-residents. • Lighting infrastructure also serves areas adjacent to schools, public facilities, and commercial corridors, which attract significant pedestrian and vehicular traffic beyond the directly assessed parcels. • Lynwood’s location in a highly urbanized, interconnected part of Los Angeles County, meaning its streets and sidewalks are often used by individuals who are not residents or property owners within the District. 297
Fiscal Year 2025/2026 Lighting Assessment District Page 12 Based on a reasonable analysis of public use patterns and best practices for general benefit determination under Proposition 218, the general benefit attributable to street lighting improvements in Lynwood is estimated at 40% of total benefit. This includes the indirect or incidental benefit experienced by the general public, such as enhanced regional mobility, visual comfort, and safety for non-assessed users. Accordingly, 40% of the total cost of street lighting services will be funded from non-assessment sources, such as the City’s General Fund. The remaining 60% of costs are considered to provide special benefit to the assessed parcels and are therefore funded through District assessments. This allocation ensures compliance with Proposition 218 by clearly separating general benefit from parcel-specific special benefit. ASSESSMENT METHODOLOGY Since the lighting facilities are located along the public streets, the front foot of each benefited property along such streets is used as the base for distributing the overall costs of the improvements in proportion to the estimated benefits to be received by each assessable parcel. The different assessments for commercial and residential properties are based on different lumen categories and other design requirements along major arterial and residential streets. 298
Fiscal Year 2025/2026 Lighting Assessment District Page 13 PART III – ESTIMATE OF COSTS There are approximately 10,061 parcels within the District, comprised of approximately 563,771 front feet (FF), excluding parcels of public property which are not assessed for the costs of improvements. ESTIMATED ASSESSMENT REVENUE Zone No. of Parcels Feet Current Rate Proposed Rate Amount Proposed Amount 1 9,153 471,125.15 $1.62 $1.798 $763,223 $847,233 2 908 92,646.62 $3.01 $3.341 278,866 309,561 Total 10,061 563,771.77 $1,042,089 $1,156,794 CAPITAL IMPROVEMENT COSTS In 1993, the City entered into an agreement with the District pursuant to Section 22662 (b) of the 1972 Act whereby the District received an advance of $2,560,703 for deposit to the Capital Improvement Fund and agreed to repay the City through the levy and collection of annual assessments for those improvements over a period of twenty (20) years, commencing with Fiscal Year 1992/1993 until the loan was paid. With the 2003 bond refinancing, the annual installment was $295,350. Since Fiscal Year 2015/2016 this installment no longer applies. On December 10, 2019, the California Energy Commission approved a Loan Agreement with the City of Lynwood to implement certain energy conservation measures including the conversion of City-owned streetlights and external lights at various facilities to LED. Debt service payments began on December 22, 2023, and terminate on December 22, 2036. CAPITAL IMPROVEMENT PROJECTS Capital improvement project is for LED Light Conversion. During Fiscal Year 2019, the City entered into an agreement with Go Green for the conversion of streetlights to LED. This work was implemented in Fiscal Year 2020. The City received a loan from the State of California Energy Commission (CEC) in the amount of $1,547,407 to pay for the conversion. The first loan payment to the CEC starts on December 22, 2023. It is anticipated that the savings from the energy cost will pay for the conversion. There are no scheduled Capital Improvement Projects for Fiscal Year 2025/2026. DISTRICT BUDGET FOR CURRENT & NEW/INCREASED MAXIMUM ASSESSMENTS The budget provided below herein provides the current assessment rate per front foot and also establishes the initial new/increased Maximum Assessment per front foot (Maximum Assessment Rate) for Fiscal Year 2025/2026. The Maximum Assessment Rate has been or will be presented to the property owners of record within the District as part of the Majority Protest Balloting Procedure. 299
Fiscal Year 2025/2026 Lighting Assessment District Page 14 Note: The assessment rate is the actual amount charged to property owners for the fiscal year, based on the approved budget and service levels. The maximum rate is the highest amount that may be levied without further voter approval. The assessment rate may vary each year but cannot exceed the maximum rate unless formally increased through a Proposition 218 process.
Direct Expenses
Annual Operation and Maintenance Annual Budget Balloted Budget Maintenance Cost
Street Lights 364,243.10$ 364,243.10$
Personnel 315,029.44 315,029.44
Repairs 50,000.00 50,000.00
Maintenance Cost Total $ 729,272.54 $ 729,272.54 Utility Cost
Electricity $ 750,000.00 $ 750,000.00 Total Annual Operation and Maintenance Expense $ 1,479,272.54 $ 1,479,272.54 Incidental Expenses
Administration
General Admin/Legal Fees $ 12,100.00 $ 12,100.00 City Administration 24,715.24 24,715.24 County Auditor/Controller Fee 2,565.25 2,565.25 Total Administration 39,380.49$ 39,380.49$ Total Incidental Expenses $ 39,380.49 $ 39,380.49 Bond
Debt Service 133,910.00$ 133,910.00$
Total Direct, Indirect and Bond $ 1,652,563.03 $ 1,652,563.03 Reserve
Operational Reserve Collection $ 50,551.49 $ 165,256.30 Total Expenses and Reserve $ 1,703,114.52 $ 1,817,819.33 General Benefit
Street Lighting General Benefit Contribution 661,025.21 661,025.21 General Fund or Other Sources Contribution -$ -$ Balance to Levy 1,042,089.31$ 1,156,794.12$
Assessed parcels 10,061 10,061
Front Footage (FF) Zone 1 471,125.15 471,125.15 Front Footage (FF) Zone 2 92,646.62 92,646.62 Assessment Rate per FF Zone 1 1.620 1.798 Assessment Rate per FF Zone 2 3.010 3.341 Max Assessment Rate per FF Zone 1 1.620$ 1.798$ Max Assessment Rate per FF Zone 2 3.010$ 3.341$ Fund Balances
Fund Balance 6/30/2025 661,708.00$ 661,708.00$ Reserve Fund In 50,551.49 165,256.30
Reserve Fund Out - -
Fund Balance 6/30/2026 712,259.49$ 826,964.30$ City of Lynwood Lighting District Budget FY2025/26
300
Fiscal Year 2025/2026 Lighting Assessment District Page 15 Assessment Range Formula Any new or increased assessment requires certain noticing and meeting requirements by law. The Brown Act defines the terms “new or increased assessment” to exclude certain conditions. These certain conditions included “any assessment that does not exceed an assessment formula or range of assessments previously adopted by the agency or approved by the voters in the area where the assessment is imposed.” To account for the anticipated annual increase in the cost of providing maintenance and operational services, the maximum assessment amounts and rates established for Fiscal Year 2025/2026 will be subject to an automatic annual adjustment. This adjustment shall be the greater of three percent (3.0%) or the percentage change in the Consumer Price Index (CPI) for the Los Angeles-Long Beach-Anaheim area, measured as of January of each succeeding year. This mechanism ensures that the maximum assessment rates remain aligned with inflationary cost increases while providing a minimum annual escalation to support service continuity. The annual adjustment was authorized by property owners through the Proposition 218 protest ballot proceeding and does not require further voter approval. The adoption of the maximum assessment rates and the Assessment Range Formula described herein does not mean that the annual assessments will necessarily increase each fiscal year. Although the maximum assessment rates that may be levied shall be adjusted (inflated) by the greater of 3% or CPI each year, the actual amount to be assessed will be based on the Balance to Levy for that fiscal year. If the calculated assessment is less than the adjusted maximum assessment, then the calculated assessment may be approved by the City Council for collection. Otherwise, it would be necessary to reduce the budget or provide a contribution from the City to reduce the Balance to Levy (amount to be assessed) to an amount that can be supported by an assessment rate less than or equal to the maximum assessment rate authorized for that fiscal year. The Assessment Range Formula (annual CPI adjustment) shall be applied to the maximum assessment rates identified in the District Budget establishing the Maximum Rate per FF within the Balloted Budget column as presented in this Report, commencing in Fiscal Year 2026/2027 and all subsequent fiscal years unless the City Council formally suspends its application. 301
Fiscal Year 2025/2026 Lighting Assessment District Page 16 PART IV – DISTRICT DIAGRAM A diagram of the District is provided below and is a visual depiction of the District’s boundaries. The combination of the Diagram and the Assessment Roll contained in Part V of this Report constitutes the Assessment Diagram for this District and encompasses all lots, parcels and subdivisions of land that receive, or will receive, a special benefit from the improvements to be provided in the District at the time this Report was prepared. Reference is hereby made to the Los Angeles County Assessor’s Parcel Maps for a detailed description of the lines and dimensions of each parcel within the District including all subsequent subdivisions, lot-line adjustments, or parcel changes therein. 302
Fiscal Year 2025/2026 Lighting Assessment District Page 17 PART V – ASSESSMENT ROLL In compliance with the 1972 Act, copies of the County Assessor’s Map and the County Tax Collector’s tax rolls were utilized to draft this Report. The Assessment Roll, for each parcel of land therein, shows the legal description; the County Assessor’s code numbers; the assessable front foot used to calculate the assessment for each parcel; and the total net assessment levied against the parcels for Fiscal Year 2025/2026. The Assessment Roll is on file in the Office of the City Engineer and is incorporated herein by reference. 303
1 RESOLUTION NO. _____________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, CALIFORNIA,
INITIATING PROCEEDINGS FOR THE ANNUAL LEVY OF ASSESSMENTS AND
BALLOTING PROCEDURES TO LEVY PROPOSED NEW OR INCREASED
ASSESSMENTS FOR THE LYNWOOD LIGHTING ASSESSMENT DISTRICT FOR FISCAL YEAR 2025/ 2026 PURSUANT TO THE PROVISIONS OF PART 2 OF DIVISION 15 OF THE CALIFORNIA STREETS AND HIGHWAY CODE AND ORDERING THE ENGINEER TO PREPARE AND FILE AN ENGINEER’S REPORT
WHEREAS, the City Council has, by previous Res olutions, formed the Lynwood Lighting Assessment District (hereafter referred to as “District”) pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the “Act”) that provides for levy and collection of assessments by the County of Los Angeles for public lighting facilities; and
WHEREAS, the improvements maintained and operated within the District include but are not limited to electric current, repair of street light stan dards and fixtures and incidental costs including labor, material and equipment. Such improvements constitute the maintenance and operation of existing and previously proposed public lighting facilities located in and along sidewalks and streets, including street lights and traffic signals, and facilities which are appurtenant thereto or which are necessary or convenient for the maintenance or operation thereof, including the cost of rent, repair, replacement, rehabilitation, fuel, power, electrical current, care, and supervision necessary to properly operate and maintain public lighting facilities and traffic signals located in and along public streets within the City; and the installation and construction of previously proposed public lighting facilities, and facilities which are appurtenant thereto or whic h are necessary or convenient for the maintenance or operation thereof, which have been or are to be paid from the proceeds of revenue bonds.
WHEREAS, the annual Engineer’s Report describes the existing improvements or substantial changes, including those improvements to be maintained; and
WHEREAS, assessments pay for the maintenance and service of public lighting facilities and appurtenant facilities and operations related thereto; and
WHEREAS, the Ci ty Council proposes to establish the levy and collection of assessments by the County on behalf of the City of Lynwood to pay for these services.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, PROCLAIM, ORDER, AND RESOLVE AS FOLLOWS:
Section 1. All of the above recitals are true and correct and incorporated herein by reference.
304
2 Section 2. The City Council of the City of Lynwood proposes the annual levy including proposed balloting for new or increased assessments within the City of Lynwood Lighting Assessment District pursuant to the Landscaping and Lighting Act of 1972 and Proposition 218.
Section 3. The City Council hereby orders Willdan Financial Services to prepare the Engineer’s Report concerning the levy of assessmen ts for the District in accordance with Chapter 3, Section 22622 of the Act.
PASSED, APPROVED and ADOPTED this 3rd day of June, 2025.
_______________________________
Rita Soto
Mayor
ATTEST:
__________________________ _________________________________ Maria Quiñonez Julian Lee
City Clerk City Manager
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
__________________________ _________________________________ Noel Tapia Ahmad Ansari
City Attorney Interim Director of Public Works/City Engineer
305
3 STATE OF CALIFORNIA )
) §
COUNTY OF LOS ANGELES )
I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the above and foregoing resolution was duly adopted by the City Council of the City of Lynwood at a regular meeting held in the City Hall of said City on the day of _______________, ______, and passed by the following vote:
AYES:
NOES:
ABSENT:
_________________________________
City Clerk, City of Lynwood
306
1 RESOLUTION NO. ______________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, CALIFORNIA,
DECLARING ITS INTENTION TO ORDER THE LEVY AND COLLECTION OF ANNUAL
ASSESSMENTS AND TO BALLOT PROPERTY OWNERS FOR FISCAL YEAR 2025/2026 WITHIN THE LYNWOOD LIGHTING ASSESSMENT DISTRICT PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972 (COMMENCING WITH STREETS AND HIGHWAYS CODE SECTION 22500 ET SEQ.) AND FIXING THE TIME AND PLACE FOR HEARING PROTESTS AND OBJECTIONS AS AUGUST 5, 2025
WHEREAS, the City Council has, by previous Resolutions, formed the Lynwood Lighting Assessment District (hereafter referred to as “District”) and initiated proceedings for the Fiscal Year 2025/2026 annual process along with property owner protest balloting procedures for the District pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the “Act”) that provides for the levy a nd collection of assessments by the County of Los Angeles for the City of Lynwood to pay the maintenance and servicing of the lighting improvements and facilities related thereto; and
WHEREAS, the District and the associated assessments are in compliance with the provisions of California Constitution Article XIIID; and
WHEREAS, the City Council has retained Willdan Financial Services to prepare and file an Engineer’s Report with the City Clerk for the purposes of establishing ongoing annual assessments in accordance with the Act and the provisions of the California Constitution, Article XIIID.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, PROCLAIM, ORDER, AND RESOLVE AS FOLLOWS:
Section 1. The City Council of the City of Lynwood hereby finds and declares that the foregoing recitals are true and correct and incorporates them herein as findings and as a substantive part of this Resolution.
Section 2. Pursuant to the Landscaping and Lighting Act of 1972, commencing with Streets and Highways Code Section 22500 et seq., the City Council of the City of Lynwood hereby declares its intention to order the levy and collection of assessments and the balloting for new or increased assessments against the assessable lots and parcels of land within an existing assessment district designated as Lynwood Lighting Assessment District (the “District”) for Fiscal Year 2025/2026 to pay for the increasing costs of existing and previously proposed improvements described as:
“The installation or construction and maintenance and servicing of existing and previously proposed public lighting facilities and facilities which are appurtenant thereto or which are necessary or convenient for the maintenance or servicing thereof, including but not limited to, electric current, repair of street light standards and fixtures and incidental costs 307
2 including labor, material and equipment. Such improvements constitute the maintenance and operation of existing and previously proposed public lighting facilities located in and along sidewalks and streets, including street lights and traffic signals, and facilities which are appurtenant thereto or which are necessary or convenient for the maintenance or operation thereof, including the cost of rent, repair, replacement, rehabilitation, fuel, power, electrical current, care, and supervision necessary to properly operate and maintain public lighting facilities and traffic signals located in and along public streets within the City; and the installation and construction of previously proposed public lighting facilities, and facilities which are appurtenant thereto or whic h are necessary or convenient for the maintenance or operation thereof, which have been or are to be paid from the proceeds of revenue bonds.”
The boundaries of the District are conterminous with the boundaries of the City of Lynwood as shown on the map identified as Assessment District Map No. 2017-A on file in the office of the City Engineer.
Section 3. Reference is hereby made to the report of the Engineer ordered by the City Council on June 3, 2025, by resolution, and on file in the office of the City Clerk, describing the improvements made, the maintenance and servicing thereof, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District.
Section 4. Notice is hereby given that on August 5, 2025, at 6:00 p.m., or as soon thereafter as the matter may be heard, in the Council Chambers of the City Hall Annex, 11350 Bullis Road, Lynwood, California, the City Council will conduct a public hearing to consider protests and objections to the levy and collection of the proposed assessments, for existing rates and the balloted new or increased rates for the District for Fiscal Year 2025/2026.
Pursuant to the Landscaping and Lighting Act of 1972 and Article XIIID of the California Constitution, only ballots that are properly returned will be counted toward determining whether a majority protest exists. A majority protest is deemed to exist if the assessment ballots submitted in opposition to the new or increased assessments represent more than 50 percent of the weighted ballots received. If such a maj ority protest exists, the new or increased assessments shall not be imposed. This hearing will determine whether the proposed new or increased assessments will be confirmed and levied upon the lots and parcels within the District.
A written or verbal protest by a property owner shall disclose a description sufficient to identify the property. All interested persons shall be afforded the opportunity to hear and be heard. The City Council shall consider all oral statements and written protests or communications made or filed by an interested person.
The public hearing will be held in the City Council Chamber . The public may participate in person.
308
3 Information on the telephonic access to the City Council Meeting may change. To receive the most up -to-date information on whether the Public Hearing is accessible telephonically or via videoconferencing; and/or changes on the phone numbers as well as access code and password, will be included in the August 5, 2025 Agenda. Members of the public may access this Agenda online by visiting the City of Lynwood’s website at www.lynwoodca.gov/, click ing on “Agendas & Minutes, ” select ing “Council Meeting Agenda Packet,” and selecting “Agenda August 5, 2025-Regular Meeting” to obtain the dial-in number and correlating access code. Members of the public may also use the following link: www.lynwoodca.gov/129/Agendas-Minutes.
Section 5. The City Clerk is hereby directed to cause notice of the passage of this resolution to be given at the time and place in the form and manner provided by law.
Section 6. The assessment rate for Fiscal Year 2025/2026 is proposed to remain at $1.62 per front foot for residential and $3.01 per front foot for commercial properties if a majority protest is received against the proposed new or increased balloted assessment rate of $1.798 per front foot for residential and $3.341 per front foot for commercial.
Section 7. Authorize the Mayor to execute the Resolution for and on behalf of the City of Lynwood.
Section 8 . This Resolution shall take full force and effect immediately upon adoption by the City Council.
PASSED, APPROVED and ADOPTED this 3rd day of June, 2025.
_______________________________
Rita Soto
Mayor
ATTEST:
__________________________ _________________________________ Maria Quiñonez Julian Lee
City Clerk Interim City Manager
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
__________________________ _________________________________ Noel Tapia Ahmad Ansari
City Attorney Interim Director of Public Works/City Engineer 309
4 STATE OF CALIFORNIA )
) §
COUNTY OF LOS ANGELES )
I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the above and foregoing resolution was duly adopted by the City Council of the City of Lynwood at a regular meeting held in the City Hall of said City on the day of _______________, ______, and passed by the following vote:
AYES:
NOES:
ABSENT:
310
1 RESOLUTION NO. _____________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD , CALIFORNIA, PRELIMINARY APPROVAL OF THE ANNUAL ENGINEER’S REPORT
INCLUDING PROPOSED NEW OR INCREASED ASSESSMENTS FOR THE
LYNWOOD LIGHTING ASSESSMENT DISTRICT PREPARED PURSUANT TO CALIFORNIA STREETS AND HIGHWAYS CODE, SECTION 22565 ET SEQ., AS ORDERED BY THE CITY COUNCIL ON JUNE 3, 2025
WHEREAS, the City Council has, by previous Resolutions, ordered the preparation of an Engineer’s Report (hereafter referred to as the “Report”) including new and increased proposed assessments for the district known and designated as the Lynwood Lighting Assessment District (hereafter referred to as the “District”) pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the “Act”); and
WHEREAS, Willdan Financial Services (as assessment engineer) has prepared and filed said Report with the City Clerk and the City Clerk has presented said Report to this City Council for consideration.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, PROCLAIM, ORDER, AND RESOLVE AS FOLLOWS:
Section 1. The City Council of the City of Lynwood hereby finds and declares that the foregoing recitals are true and correct and incorporates them herein as findings and as a substantive part of this Resolution.
Section 2. The City Council has considered said Report as filed and is hereby approved.
Section 3. Said Report, including any plans and/or diagrams, estimates of costs and expenses and assessments shall be placed on file in the office of the City Clerk and may be examined by any interested persons.
Section 4. Authorize the Mayor to execut e the Resolution for and on behalf of the City of Lynwood.
Section 5 . This Resolution shall take full force and effect immediately upon adoption by the City Council.
311
2 PASSED, APPROVED and ADOPTED this 3rd day of June, 2025.
_______________________________
Rita Soto
Mayor
ATTEST:
__________________________ _________________________________ Maria Quiñonez Julian Lee
City Clerk City Manager
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
__________________________ _________________________________ Noel Tapia Ahmad Ansari
City Attorney Interim Director of Public Works/City Engineer
312
3 STATE OF CALIFORNIA )
) §
COUNTY OF LOS ANGELES )
I, the undersigned, City Clerk of the Cit y of Lynwood, do hereby certify that the above and foregoing resolution was duly adopted by the City Council of the City of Lynwood at a regular meeting held in the City Hall of said City on the day of _______________, ______, and passed by the following vote:
AYES:
NOES:
ABSENT:
313
AGENDA STAFF REPORT
DATE:
June
3, 2025
TO:
Honorable Mayor and Members of the City Council
APPROVED BY:
Julian Lee, City Manager
PREPARED BY:
Harry Wong, Director of Finance & Administration
SUBJECT:
FISCAL YEAR (FY) 2025-27 BUDGET WORKSHOP
Agenda Item # 10.5.
Recommendation:
Staff recommends that the City Council conduct a budget workshop to receive a presentation on the FY 2025-27 Proposed Budget and provide suggestions to the staff.
Background:
In preparation for the FY 2025-27 Biennial Budget Hearing, the purpose of this Budget Workshop is to review the FY 2025-27 Proposed Budget. The focus at the Budget Workshop is on the General Fund. Staff looks forward to Council’s comments on the draft budget and proposed modifications for incorporation into the full Proposed FY 2025-27 Budget (City, Successor Agency, Lynwood Utility Authority, Appropriations Limit, and Master Fee Schedule), which will be presented at the scheduled budget hearing for the Council approval.
Discussion and Analysis:
FY 2024-25 General Fund Year-End Performance
On June 20, 2023, the City Council adopted the FY 2023-25 Biennial Citywide Budget. On June 26, 2024, the City Council adopted the updated second year operating budget (the FY 2024-25 revised operating budget). The revised adopted FY 2024-25 General Fund Budget included $54.19 million in expenditures and transfer outs, $47.07 million in revenues and transfer ins, with an operating deficit of $7.12 million. The City is projecting to end the year with $52.33 million in expenditures, offset by $43.54 million in revenue and deficit of $8.79 million. Please note the projected (unaudited) fund balance for FY 2024-25 year-end (i.e., City Council City Council Regular Meeting 314
beginning fund balance of the FY 2025-2027 biennial budget) indicates a $17.81 million of spendable monies.
FY 2024-25 GENERAL FUND BUDGET
FY 2024-25
Revised
Adopted
Budget
FY 2024-25
Projected
Year-End
(Unaudited)
Beginning Fund Balance
$8,272,023
$26,600,281
Revenues
$47,072,671
$43,544,786
Expenditures
($54,191,894)
($52,334,198)
Operating Surplus (Deficit)
($7,119,223)
($8,789,412)
Ending Fund Balance
$1,152,800
$17,810,869
FY 2024-25 Year-End Financial Report (Unaudited):
The table below details the City’s FY 2024-25 Revised Adopted Budget and FY 2024-25 Year- End Estimates (Unaudited) for revenue and expenditures. Overall, revenues for the City are projected to be down by 7.5% (or $3.53 million) compared to the FY 2024-25 Revised Adopted Budget. Numerous sources of revenue are projected to exceed the revised adopted FY 2024- 25 budget figures. The City’s expenditures are projected to be down by 3.4% (or $1.86 million) compared to the FY 2024-25 Revised Adopted Budget.
MAJOR GENERAL FUND REVENUES
FY 2024-25
Revised
Adopted
Budget
FY 2024-25
Projected Year-
End Estimate
(Unaudited)
FY 2024-25
Budget vs.
Actual Dollar
Increase
(Decrease)
FY 2024-25
Budget vs.
Actual
Percentage
Increase
(Decrease)
Revenues
Property Tax
$14,332,324
$14,768,789
$436,465
3.0%
Sales Tax
13,617,407
13,352,000
(365,407)
-2.7%
Utility Users Tax
5,347,950
6,100,000
752,050
14.1%
Franchise Fees
1,741,000
1,304,105
(436,895)
-25.1%
Business License & Other Tax
731,600
731,300
(300)
0.0%
Charges for Current Services
1,928,150
1,962,062
33,912
1.8%
Fines, Forfeits, & Penalties
897,000
941,300
44,300
4.9%
Other Revenues
2,269,050
3,177,040
907,991
40.0%
Transfers In
6,208,190
1,208,190
(5,000,000)
-80.5%
Total Revenues
$47,072,671
$43,544,786
($3,527,884)
-7.5%
City Council City Council Regular Meeting 315
Expenditures
Operational Expenses
$47,138,816
$45,281,120
($1,857,696)
-3.9%
Transfers Out
7,053,078
7,053,078
0 0.0%
Total Expenditures
$54,191,894
$52,334,198
($1,857,696)
-3.4%
FY 2025-27 Proposed Budget Overview
The City Manager and Finance staff met with all Departments and Offices to review and discuss FY 2025-27 proposed budgets. The table below highlights the FY 2025-26 and FY 2026-27 General Fund Proposed Budgets.
FY 2025-27 GENERAL FUND
PROPOSED BUDGET
FY 2025-26
Proposed
FY 2026-27
Proposed
Revenue
$44,243,060
$43,896,740
Expenditures
$50,883,885
$53,294,467
Projected Deficit
($6,640,825)
($9,397,727)
Beginning Balance
$17,810,869
$11,170,044
Ending Balance
$11,170,044
$1,772,317
Fund Balance Needed to
Meet Reserve Policy
$8,650,260
*$9,060,059
*City’s three reserve fund balance has grown to a combined total of $19.93M as of 06/30/2027 (Retirement Reserve Fund at $6.80M, Contingency Set-aside at $6.37M, and Rainy-Day Fund at $6.76M), which would be counted as part of the general fund reserve fund balance to meet the City’s reserve policy.
The General Fund is the primary source and operating fund for most of the services, such as public safety (Los Angeles County Sheriff & Fire), street and park maintenance, and community services, that the City provides to the community.
The FY 2025-26 and FY 2026-27 Proposed Budgets were developed in the context of growing City Council City Council Regular Meeting 316
economic uncertainties and concerns of a possible recession. Cautionary factors such as international tariff disputes, global supply chain disorder, continued inflationary pressures and higher recessionary fears have clouded the City’s economic outlook. For FY 2025-26, the proposed revenue for property, sales, and use taxes is comprised of 63.26%, or $27.99 million of the total $44.24 million in resources provided to the General Fund. Utility user’s tax, licenses, permits, franchise fees, fines, interest, rent and other miscellaneous sources represent 36.74% of revenues ($16.25 million).
For FY 2026-27, the proposed revenue for property, sales, and use taxes is comprised of
67.32%, or $29.55 million of the total $43.90 million in resources provided to the General Fund. Utility user’s tax, licenses, permits, franchise fees, fines, interest, rent and other miscellaneous sources represent 32.68% of revenues ($14.35 million).
FY 2025-26 AND FY 2026-27 PROPOSED GENERAL FUND BUDGET
FY 2024-25
Revised
Adopted
Budget
FY 2024-25
Projected
Year- End
Estimate
(Unaudited)
FY 2025-26
Proposed
Budget
FY 2026-27
Proposed
Budget
Revenues
Property Tax
$14,332,324
$14,768,789
$14,328,386
$15,629,990
Sales Tax (including Measure PS)
13,617,407
13,352,000
13,658,850
13,920,743
Utility Users Tax
5,347,950
6,100,000
5,508,389
5,563,472
Franchise Fees
1,741,000
1,304,105
2,050,000
2,055,000
Business License & Other Tax
731,600
731,300
729,100
729,100
Charges for Current Services
1,928,150
1,962,062
2,034,200
2,062,610
Fines, Forfeits, & Penalties
897,000
941,300
948,000
948,000
Other Revenues
2,269,050
3,177,041
4,986,135
2,987,825
Transfers In
6,208,190
1,208,190
-
-
Total Revenues
$47,072,671
$43,544,787
$44,243,060
$43,896,740
Expenditures
Operational Expenditures
$47,138,816
$45,281,120
$48,034,358
$51,335,967
Transfers Out
7,053,078
$7,053,078
$2,849,527
$1,958,500
Total Expenditures
$54,191,894
$52,334,198
$50,883,885
$53,294,467
The FY 2025-26 proposed budget includes $50.88 million in recommended expenditures.
Personnel costs, which include salaries and benefits, represent $9.56 million of the total expenditures. Operational costs, which include materials, services and supplies, account for $35.89 million of the budget. Debt service and transfers to other funds costs total $5.43 million.
The proposed expenditures have decreased by 6.10% or $3.31 million from FY 2024-25 revised adopted budget.
The FY 2026-27 proposed budget includes $53.29 million in recommended expenditures.
City Council City Council Regular Meeting 317
Personnel costs, which include salaries and benefits, represent $9.90 million of the total expenditures. Operational costs, which include materials, services and supplies, account for $38.84 million of the budget. Debt service and transfers to other funds costs total $4.55 million.
The projected expenditures will increase by 4.74% or $2.41 million from the FY 2025-26 proposed budget, (which is primarily attributed to the $2.52 million increase in Safety services contract costs), but still decreased 1.66% or $0.90 million from the FY2024-25 revised adopted budget.
FY 2025-26 AND FY 2026-27 PROPOSED GENERAL FUND EXPENDITURES BY CATEGORY
FY 2024-25
Revised
Adopted
Budget
FY 2024-25
Projected Year-
End Actuals
FY 2025-26
Proposed
Budget
FY 2026-27
Proposed
Budget
Salaries & Benefits
9,334,801
8,452,709
9,556,974
9,900,927
Public Safety
23,594,484
23,418,555
24,561,668
27,085,364
Maintenance & Operations
14,181,181
13,381,506
13,882,866
14,316,826
Capital Outlay
28,350
28,350
32,850
32,850
Transfers Out - CIP
-
-
-
-
Transfers Out - Other
7,053,078
7,053,078
2,849,527
1,958,500
Proposed Expenditures
54,191,894
52,334,198
50,883,885
53,294,467
Other Proposed Budget Recommendations
In order to properly set aside and maintain the reserve funds, the City Manager is recommending the following transfer:
FY 2025-26
FY 2026-27
Contingency Set-Aside Fund (Resolution No.
2006.1011)
500,000
500,000
Rainy Day Fund (10% of Measure PS)
747,400
763,500
Retirement Reserve Fund
200,000
200,000
Also, as part of the upcoming budget adoption, the City Manager is recommending the establishment of the following internal service fund:
Facilities Maintenance Fund
City Council City Council Regular Meeting 318
In order for the City to properly budget for the above services, the City Manager believes it is important to budget for the internal service fund charges with adequate allocation bases and to keep up with the service level.
Additionally, in an effort to control personnel costs while maintaining adequate service levels, the City Manager recommends no increase in budgeted positions for the biennial budget of FY2025-27.
Fiscal Impact:
It is estimated that the General Fund balance will complete the FY 2024-25 fiscal year at $17.81 million. This is an estimated decrease of $8.79 million in higher expenditures over revenues. Revenue estimates for FY 2025-26 and FY 2026-27 continued to have low to moderate increases, where the proposed budgeted expenditures are higher, primarily due to the CIP projects, higher safety contract costs.
Based on the FY 2025-26 Proposed Budget and FY 2026-27 Proposed Budget, the projected General Fund balance would be $11.17 million at the end of FY 2025-26 and $1.77 million at the end of FY 2026-27.
Coordinated With:
City Manager’s Office
City Attorney’s Office
All Departments
City Council City Council Regular Meeting 319
STATE OF CALIFORNIA NATURAL RESOURCES AGENCY Gavin Newsom, Governor “The Department of Forestry and Fire Protection serves and safeguards the people and protects the property and resources of California.”
DEPARTMENT OF FORESTRY AND FIRE PROTECTION
OFFICE OF THE STATE FIRE MARSHAL
Pipeline Safety Division
3780 Kilroy Airport Way, Suite 500
Long Beach, California 90806
(562) 497-0350
Website: www.fire.ca.gov
CERTIFIED MAIL No: 9589-0710-5270-2042-2705-61
March 6, 2025
Gabriel Linares
Director of Community Development
City of Lynwood
11330 Bullis Road
Lynwood, California 90262
SUBJECT: TORRANCE PIPELINE COMPANY LLC M-145 (OSFM LINE ID #0205)
Dear Gabriel Linares:
CAL FIRE – The Office of the State Fire Marshal (OSFM) confirms that Torrance Pipeline Company (TLC) is in compliance with federal and state laws and regulations governing the maintenance and operation of the subject pipeline located in the City of Lynwood.
TLC’s M-145 line transports products from the TLC Torrance Meter Station to the TLC Vernon Terminal, with a connection to the Kinder Morgan Watson Station. The M-145 pipeline is 12 inches in diameter and spans a total length of 18.26 miles.
TLC is required to operate and maintain its pipelines in accordance with the California Pipeline Safety Act and the Code of Federal Regulations (CFR) Part 195. The OSFM conducts standard inspections of this pipeline on an annual basis. Additionally, an internal inspection of the pipeline using a Smart Pig was performed, and the final report dated November 26, 2024, was submitted to the OSFM confirming a successful run.
If you have any questions regarding this issue, please contact Andy Chau, Supervising Pipeline Safety Engineer, at (562) 305-0679.
Sincerely,
JAMES HOSLER
Assistant Deputy Director
Chief of Pipeline Safety and CUPA Programs
225320
Gabriel Linares
March 6, 2025
cc: Alin Podoreanu, OSFM, Supervising Pipeline Safety Engineer Andy Chau, OSFM, Supervising Pipeline Safety Engineer
Brendan Feery, OSFM, Supervising Pipeline Safety Engineer Doug Allen, OSFM, Supervising Pipeline Safety Engineer
Huy Nguyen, OSFM, Supervising Pipeline Safety Engineer
226321