Administrative
Report
H.6., File # 24-0724 Meeting Date: 5/21/2024
To: MAYOR AND CITY COUNCIL
From: ANDREW WINJE, PUBLIC WORKS DIRECTOR
TITLE
APPROVE THE CITY ENGINEER’S REPORT FOR THE 2024-2025 FISCAL YEAR STREET
LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
ADOPT BY TITLE ONLY RESOLUTION NO. CC-2405-037, 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, 2024 AND ENDING JUNE 30, 2025, AND SETTING A TIME
AND PLACE FOR THE PUBLIC PROTEST HEARING
SET JUNE 11, 2024, AS THE DATE TO CONDUCT A PUBLIC HEARING TO CONSIDER THE PROPOSED 2024-2025 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 2, 2024, 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 FY 2024-25. The Engineer’s Report includes a summary of the District’s boundaries, its proposed revenues and expenditures, and the services funded by the assessment. This year’s Engineer’s Report was created with the assistance of the City’s consultant, Francisco and Associates, who were awarded a contract in January 2024 for this work. The report is in a new format and includes additional explanation of the City’s assessment methodology and collection.
However, like recent years, the Engineer’s Report concludes that a General Fund subsidy of $982,131 will be required in FY 2024-25 to cover all District costs. This is 3.3% higher than the expected General Fund subsidy for FY 2023-24.
BACKGROUND
On April 2, 2024, the City Council adopted Resolution No. CC-2404-020 and ordered the Engineer’s Report from the City Engineer for the FY 2024-25 activities of the Street Landscaping and Lighting Assessment District. The Engineer’s 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 that are included in the District. The Engineer’s Report is attached and a copy of the District map is also available for review at the
H.6., File # 24-0724 Meeting Date: 5/21/2024
Engineer’s Report is attached and a copy of the District map is also available for review at the Engineering Services counter at City Hall and on the City’s website at:
https://www.redondo.org/departments/public_works/engineering_services/gis_maps_locator.php <https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.redondo.org% 2Fdepartments%2Fpublic_works%2Fengineering_services%2Fgis_maps_locator.php&data=05% 7C02%7CJesse.Reyes%40redondo.org%7Ca32fdeab3aa945ac18c708dc68ad1bf5% 7C08ea6101a7cb4984aff676e3d00172df%7C0%7C0%7C638500339934057212%7CUnknown% 7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0% 3D%7C0%7C%7C%7C&sdata=woxI7cRQlqv2GSjo6o0ok5UFJF8SV8PWLrkCDPELUEo% 3D&reserved=0>
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 Beacons, and 23 Flashing Red Beacons); 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 2024-25 assessment and set the public hearing for June 11, 2024 for consideration of final approval.
A typical home in Redondo Beach with a frontage of 40 feet pays approximately $59.20 per year for street landscaping and lighting under the District’s assessment methodology. This has not changed since 1991. The District, in FY 2024-25, is projected to run a $982,131 deficit that must be offset, typically by a subsidy from the General Fund. Estimated costs for FY 2024-25 are based on projected expenses for FY 2024-25. For comparison, FY 2023-24 is estimated to have a $950,759 deficit that is offset by the General Fund.
Opportunity/Process to Increase the Assessment and Eliminate the General Fund Subsidy To address the deficit, the City Council may 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 the FY 2017-18 budget adoption discussions, the City Council deliberated on this, but ultimately decided to leave the assessment unchanged.
If the City Council chooses to proceed with a supplemental assessment, the following steps are anticipated. After solicitation, a professional services contract would be awarded by the City Council to an engineering consultant to prepare a detailed engineering report that outlines the total cost of the needed 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 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 must be returned prior to the close of the public hearing and are 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 Page 2 of 3 H.6., File # 24-0724 Meeting Date: 5/21/2024
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, a consultant contract could be awarded in Summer 2024, the engineer’s report prepared in Fall 2024, with ballots mailed in early 2025. This would be followed by a public hearing and determination of the vote in Spring 2025, in time for assessment during the FY 2025-26.
The decision to pursue a supplemental assessment is a matter of City Council discretion.
Whether or not to pursue an increased assessment in the future has no bearing on the immediate action required to maintain the current SLLD assessment. As such, staff recommends the Council approve the City Engineer’s Report, adopt a resolution declaring the Council’s intention to order an assessment for the maintenance and improvements for FY 2024-25, and set June 11, 2024 as the date to conduct a public hearing to consider the proposed Street Landscaping and Lighting District Assessment for FY 2024-25.
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 FY 2024-25 are as follows:
FY 2024-25 Funding FY 2024-25 Expenditures
Assessment Fee 1,508,822 Personnel 871,154
Public Services Lighting Fee 600 M & O 1,368,966
Other Revenues 17,000 Capital Improvements 0
General Fund Subsidy 982,131 Overhead/Internal Svc Chg 268,433 Total Funding 2,508,553 Total Expenditures 2,508,553
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Report - City Engineer’s Report for the FY 2024-25 Street Landscaping and Lighting Assessment District
· Reso - City Council Resolution Declaring Intent to Levy the FY 2024-25 Street Landscape & Lighting Assessment District