Administrative
Report
L.1., File # 23-5543 Meeting Date: 6/6/2023
To: MAYOR AND CITY COUNCIL
From: TED SEMAAN, PUBLIC WORKS DIRECTOR
TITLE
PUBLIC HEARING TO CONSIDER THE PROPOSED ASSESSMENTS FOR THE STREET LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT FOR FISCAL YEAR 2023-2024; ADOPT BY TITLE ONLY RESOLUTION NO. CC-2306-052, A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, CONFIRMING THE DIAGRAM AND
ASSESSMENT, AND LEVYING OF THE ASSESSMENT FOR THE STREET LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT FOR THE FISCAL YEAR FROM JULY 1, 2023 TO JUNE 30, 2024; AND
PROCEDURES:
A. OPEN THE PUBLIC HEARING, TAKE TESTIMONY;
B. CLOSE THE PUBLIC HEARING; AND
C. ADOPT THE RESOLUTION
EXECUTIVE SUMMARY
On May 16, 2023, the City Council approved the City Engineer’s Report and adopted Resolution No.
CC-2305-044, declaring its intention to levy assessments for the Street Landscaping and Lighting District (District) for maintenance of street lighting fixtures and landscaped areas for FY 2023-24. As part of the approval, the City Council set June 6, 2023 as the date for a public hearing to consider the proposed District assessment. The annual assessment fee is not proposed for adjustment in the upcoming fiscal year and has not been changed since 1991. It should be noted that current assessment fee revenue does not fully cover District expenses. As a result, the General Fund must annually subsidize District operations. The proposed subsidy for FY 2023-24 is $1,037,300.
BACKGROUND
The District was formed in 1983 under the requirements of the 1972 Landscaping and Lighting Act (Act). The District operates and maintains: 5,127 street lights (3,228 Southern California Edison owned and 1,899 City owned); 101 signals (56 Traffic and 22 Flashing Yellow Beacon and 23 Flashing Red Beacon) and 21.85 acres of landscaping.
In accordance with the Act, on April 4, 2023, the City Council adopted Resolution No. CC-2304-035, ordering a report from the City Engineer for FY 2023-24 Landscaping and Lighting Assessment District, including an assessment diagram, plans, specifications and cost estimates for furnishing electrical energy, maintenance and improvements for public lighting facilities and landscaped areas
L.1., File # 23-5543 Meeting Date: 6/6/2023
included in the District. The report was presented to the City Council on May 16, 2023.
At that time, the City Council approved Resolution No. CC-2305-044, declaring its intention to levy assessments for FY 2023-24 for maintenance of the public lighting facilities and landscaped areas.
The Resolution set June 6, 2023 as the date for a public hearing to consider the proposed assessments (see attached) for FY 2023-24.
As described in the Engineer’s Report, a typical home in Redondo Beach with a frontage of 40 feet will pay approximately $59.20 per year for street landscaping and lighting if the City council authorizes the full assessment. The sum of all fees collected by the maximum authorized assessment is not enough to cover the costs of the District and the City annually subsidizes the District’s expenses. Despite the shortfall, the assessment has not changed since 1991. In 2006, the City sought voter approval under Proposition 218 to adjust the assessment to pay for all District costs. Redondo Beach property owners voted against the proposed fee increase. The City Council considered initiating the process to increase the assessment during FY 2016-17 budget adoption discussions, but ultimately decided to leave the assessment unchanged. In FY 2023-24, the District is anticipated to run a $1,037,300 deficit, which must be offset by a subsidy from the General Fund.
Despite the lack of a proposed change to the annual fee for FY 2023-24, the Act requires that a public hearing be held before implementing each year’s District assessment.
COORDINATION
The attached Resolution was prepared by the City Attorney’s Office. Public Works Department staff coordinated with staff in the Financial Services Department to prepare the District’s annual revenue and expense figures.
FISCAL IMPACT
The following funding/expenditure plan is consistent with the May 16, 2023 City Engineer’s Report.
FY 23-24 Funding FY 23-24 Expenditures
Assessment Fees $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. 2306-052 Landscape and Lighting Act
· Table - FY 2023-24 Assessment Schedule