Administrative
Report
L.1., File # 24-0958 Meeting Date: 6/11/2024
To: MAYOR AND CITY COUNCIL
From: ANDREW WINJE, PUBLIC WORKS DIRECTOR
TITLE
PUBLIC HEARING TO CONSIDER THE PROPOSED ASSESSMENTS FOR THE STREET LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT FOR FISCAL YEAR 2024-2025; AND APPROVE THE REVISED CITY ENGINEER’S REPORT FOR THE FISCAL YEAR 2024-2025 STREET LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT; AND ADOPT, BY TITLE ONLY, RESOLUTION NO. CC-2406-042, A RESOLUTION OF THE CITY COUNCIL 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, 2024 TO JUNE 30, 2025
RECOMMENDATION:
A. Open Public Hearing, take testimony and deliberate; and B. Close Public Hearing; and
C. Approve the revised City Engineer’s Report
D. Adopt Resolution No. CC-2406-042
EXECUTIVE SUMMARY
On May 21, 2024, the City Council approved the City Engineer’s Report and adopted Resolution No.
CC-2405-037, declaring its intention to levy assessments for the Street Landscaping and Lighting District (District) for maintenance of street lighting fixtures and landscaped areas for the 2024-2025 Fiscal Year. As part of the approval, the City Council set June 11, 2024 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 the 2024-2025 Fiscal Year is $1,125,701.
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 2, 2024, the City Council adopted Resolution No. CC-2404-020, ordering a report from the City Engineer for the 2024-2025 Fiscal Year Landscaping and Lighting
L.1., File # 24-0958 Meeting Date: 6/11/2024
ordering a report from the City Engineer for the 2024-2025 Fiscal Year 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 included in the District. The report was presented to the City Council on May 21, 2024.
At that time, the City Council approved Resolution No. CC-2405-037, declaring its intention to levy assessments for the 2024-2025 Fiscal Year for maintenance of the public lighting facilities and landscaped areas. The Resolution set June 11, 2024 as the date for a public hearing to consider the proposed assessments (see attached) for the 2024-2025 Fiscal Year.
As described in the Engineer’s Report, a typical home in Redondo Beach with a frontage of 40 feet pays 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 has not been enough to cover the costs of the District and the City annually subsidizes the District’s expenses. Despite the continued shortfall, the assessment has not changed since 1991. In the 2024 -2025 Fiscal Year, the District is anticipated to run a $1,125,701 deficit, which must be offset by a subsidy from the General Fund. Despite the lack of a proposed change to the annual fee for the 2024-2025 Fiscal Year, the Act requires that a public hearing be held before implementing each year’s District assessment.
Supplemental Assessment Process
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 make a supplemental 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 again, but ultimately decided to leave the assessment unchanged. A budget response report detailing the process to increase the assessment and written for that year’s discussion is included for reference. The objective of the supplemental assessment is to reduce or eliminate the funding gap that is currently being subsidized by General Fund monies. A supplemental assessment, rather than a reconsideration of the original assessment, is recommended so that the current source of funding is not jeopardized.
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. 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 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 2024, the engineer’s report prepared in Fall 2024, with ballots mailed in early 2025, followed by a public hearing and determination of the vote in Spring 2025, in time for assessment during FY 2025-26.
L.1., File # 24-0958 Meeting Date: 6/11/2024
COORDINATION
The attached Resolution was prepared by the City Attorney’s Office. Public Works Department staff coordinated with the Financial Services Department to prepare the District’s annual revenue and expense figures.
FISCAL IMPACT
The below funding/expenditure table reflects the proposed FY 2024-25 Budget and is consistent with the revised City Engineer’s Report presented on June 11, 2024.
FY 2024-25 Funding FY 2024-25 Expenditures
Assessment Fee 1,513,000
Personnel 977,440
Public Services Lighting Fee 600 M & O 1,300,946
Other Revenues 17,000 Capital Improvements 0
General Fund Subsidy 1,125,701 Overhead/Internal Svc Chg 377,915 Total Funding 2,656,301 Total Expenditures 2,656,301
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Reso - Street Landscape & Lighting Act
· Report - Revised City Engineer’s Report, June 11, 2024 · Table 1 - FY 24-25 Assessment Schedule
· Budget Response Report - FY2017-28 BRR 26 & 26A