Administrative
Report
H.8., File # 23-5542 Meeting Date: 5/16/2023
To: MAYOR AND CITY COUNCIL
From: TED SEMAAN, PUBLIC WORKS DIRECTOR
TITLE
APPROVE THE CITY ENGINEER’S REPORT FOR THE 2023-2024 FISCAL YEAR STREET
LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
ADOPT BY TITLE ONLY RESOLUTION NO. CC-2305-044, A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, DECLARING ITS INTENTION TO
ORDER AN ASSESSMENT FOR THE MAINTENANCE AND IMPROVEMENTS OF CERTAIN
STREET LIGHTING FIXTURES, APPURTENANCES AND LANDSCAPED AREAS FOR THE FISCAL YEAR COMMENCING JULY 1, 2023 AND ENDING JUNE 30, 2024, AND SETTING A TIME
AND PLACE FOR THE PUBLIC PROTEST HEARING
SET JUNE 6, 2023, AS THE DATE TO CONDUCT A PUBLIC HEARING TO CONSIDER THE PROPOSED 2023-2024 FISCAL YEAR STREET LANDSCAPING AND LIGHTING DISTRICT
ASSESSMENT
EXECUTIVE SUMMARY
The 1972 Landscaping and Lighting Act requires cities to prepare an engineer’s report and conduct a public hearing before levying annual landscaping and lighting district assessment fees. On April 4, 2023 the City Council directed the City Engineer to prepare the report of the anticipated expenses and assessment proposal for the City’s Street Landscaping and Lighting Assessment District (District) for the 2023-24 fiscal year. The Engineer’s Report (attached) includes a summary of the District’s boundaries, its proposed revenues and expenditures and the services funded by the assessment. According to the report, a general fund subsidy of $1,037,300 is estimated to be required in the FY 2023-24 to cover all District costs. This figure reflects core expenditures only and does not include any budget modifications that may be considered in June when the City Council approves the Fiscal Year 2023-24 Budget.
BACKGROUND
On April 4, 2023, the City Council adopted Resolution No. CC-2304-035 and ordered the Engineer’s Report from the City Engineer for the FY 2023-24 activities of the Street Landscaping and Lighting Assessment District (District). The Report includes an assessment diagram, system plans and specifications and cost estimates for furnishing electrical energy, maintenance and improvements for all public lighting facilities and landscaped public areas included in the District. The Report is attached and a copy of the District map is available for review at the Engineering Services counter at City Hall and on the City’s website at:
H.8., File # 23-5542 Meeting Date: 5/16/2023
<https://www.redondo.org/civicax/filebank/blobdload.aspx?t=42515.22&BlobID=33832> The District was formed in 1983 under the requirements of the 1972 Landscaping and Lighting Act.
The District operates and maintains the following public improvements: 5,127 Street Lights (3,228 of which are owned and operated by Southern California Edison and 1,899 of which are owned and operated by the City); 101 Signals (56 Traffic, 22 Flashing Yellow Beacon and 23 Flashing Red Beacon); and 21.85 Acres of Landscaping. Whether or not there is a proposed change to the annual fee, the Act requires that a public hearing be held before implementing each year’s District assessment. Staff recommends that the City Council approve the Engineer’s Report, adopt the attached Resolution declaring the intention to order the FY 2023-24 assessment and set the public hearing for June 6, 2023 for consideration of final approval.
A typical home in Redondo Beach with a frontage of 40 feet pays approximately $59.20 a year for street landscaping and lighting under the District’s assessment methodology. This has not changed since 1991. In FY 2023-24, the District is projected to run a $1,037,300 deficit that must be offset, typically by a subsidy from the General Fund. Estimated costs for FY 2023-24 are based on projected expenses for FY 2022-23. The FY 2023-24 anticipated deficit is $344,894 less than what is anticipated for FY 2022-23, based on mid-year projections. The reduction in the gap between revenues and expenses for FY 2023-24 reflects a reduction in expenses due to the expiration of the one-time decision packages that were approved in FY 2022-23 totaling $315,000, along with a decrease of $29,894 in Internal Service Charges (ISF). The subsidy estimate does not include budget modifications that may be identified in the City Manager’s proposed FY 2023-24 Budget.
To address the deficit, the City Council could consider initiating the process to increase the assessment. In 2006, the City sought voter approval under Proposition 218 to adjust the assessment to pay for all District related costs, but was unsuccessful. During FY 2017-18 budget adoption discussions, the City Council deliberated on this option, but ultimately decided to leave the assessment unchanged.
If the City Council chooses to proceed with a supplemental assessment, the following action items would be required. A professional services contract with an engineering consultant would be needed to prepare a detailed engineering report that outlines the total cost of the District’s improvements and services, the list of parcels to be assessed, the proportionate special benefits to each parcel and the amount of the assessment for each parcel.
The City Council would then be presented with that report and choose if and when to set a public hearing date to levy the assessment. Notice of the public hearing and ballots would then be mailed, no less than 45 days prior to the public hearing, to record property owners for each parcel to be assessed. Ballots would be required to be returned prior to the close of the public hearing and tabulated only after the public hearing is closed. If the yes votes, weighted by the assessment amount, are greater than the no votes received (similarly weighted), the City Council may levy the assessment as outlined in the engineer’s report for the following fiscal year. For example, if so directed, the consultant contract could be awarded in Summer 2023, the engineer’s report prepared in Fall 2023, with ballots mailed in early 2024, followed by a public hearing and determination of the vote in Spring 2024, in time for assessment for FY 2024-25.
Regardless of the possibility of a supplemental assessment in future years, adoption of the
H.8., File # 23-5542 Meeting Date: 5/16/2023
Resolution and acceptance of the City Engineer’s report is required to continue the current assessment for FY 2023-24.
COORDINATION
The attached Resolution has been reviewed and approved as to form by the City Attorney’s Office.
Revenue and expense figures for the Engineer’s Report have been prepared by Public Works staff and verified by the Financial Services Department.
FISCAL IMPACT
Expected funding and expenditures for the 2023-2024 FY, not including any Decision Packages in the proposed Budget, are as follows:
FY 23-24 Funding FY 23-24 Expenditures
Assessment Fee $1,513,000 Personnel
$ 878,405
Public Services Lighting Fee 600 M & O 1,342,016
Other Revenues 17,000 Capital Improvements 0
General Fund Subsidy 1,037,300 Overhead/Internal Svc Chg 347,479 Total Funding $2,567,900 Total Expenditures $2,567,900
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Reso - No. CC-2305-044 Intent to Order the Maintenance and Improvements of Certain Street Lighting Fixtures, Appurtenances and Landscaped Areas
· City Engineer’s Report for FY 2023-24 Street Landscaping and Lighting Assessment District, May 16, 2023