Agenda Item: 6
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: March 14, 2023
SUBJECT: STREETLIGHT MAINTENANCE DISTRICT – APPROPRIATION OF
ONE-TIME AND ONGOING FUNDS TO SUPPORT STREETLIGHT
OPERATIONS
DEPARTMENT: Administrative Services
PRESENTER: Kevin Tonoian
RECOMMENDED ACTION
City Council:
1. Authorize a one-time appropriation of $70,000 from the Santa Clarita Streetlight Maintenance District (Fund 359), as identified in Attachment A, to support increased electrical operation costs associated with the annexation of Tesoro Del Valle and the acceptance of streetlight maintenance in the Skyline Ranch community.
2. Authorize an ongoing appropriation of $120,000 from the Santa Clarita Streetlight Maintenance District (Fund 359), as identified in Attachment B, to support recurring streetlight electrical expenditures associated with the addition of new service areas commencing in Fiscal Year 2023-24, contingent upon the annual appropriation of funds by the City Council in future fiscal years.
3. Authorize a one-time appropriation of $90,000 from the Santa Clarita Streetlight Maintenance District (Fund 359), as identified in Attachment A, for the purchase of spare poles to support the as-needed replacement of damaged streetlights.
4. Authorize an ongoing appropriation of $50,000 from the Santa Clarita Streetlight Maintenance District (Fund 359), as identified in Attachment B, to fund the recurring purchase of additional spare streetlight poles commencing in Fiscal Year 2023-24, contingent upon the annual appropriation of funds by the City Council in future fiscal years.
BACKGROUND
The purpose of this item is to request the appropriation of one-time and ongoing funds from Streetlight Maintenance District (Fund 359) to support expansion of streetlight operations within new territories of operational responsibility and the proactive purchase of replacement poles to ensure the organization has adequate inventory to complete the timely replacement of damaged streetlights.
As background, the City of Santa Clarita (City) Streetlight Maintenance District (SMD) is responsible for funding streetlight operations throughout the City. In 2017, the City Council approved a Purchase and Sale Agreement with Southern California Edison (Edison) to acquire the City’s streetlight system. Ownership of the system, which currently encompasses 17,598 individual streetlights, provides numerous benefits including local control and installation of environmentally friendly and energy-efficient light-emitting diode (LED) fixtures.
Expansion of Streetlight Operations
Staff is requesting a one-time appropriation of $70,000 and an ongoing appropriation of $120,0000, commencing in Fiscal Year (FY) 2023-24, to support the expansion of streetlight operations, as identified in Attachments A & B. This request directly relates to the November 2022 annexation of Tesoro Del Valle (Tesoro) at which time the City accepted financial responsibility for the existing 437 streetlights. It is important to note that, due to the timing of the annexation, the City was unable purchase the streetlights located within Tesoro and these assets remain under the ownership of Southern California Edison.
Further, staff also anticipates accepting ownership and operational responsibility for an additional 191 new streetlights within the Skyline Ranch community prior to the conclusion of FY 2022-23.
Replacement Pole Inventory
Finally, a component of the City’s streetlight operation encompasses the recurring replacement of streetlight poles damaged as a result of vehicle collisions. Dating back to the beginning of FY 2022-23, the City has experienced a significant increase in the number of poles involved in traffic collisions. Dating back to July 1, 2022, staff has installed 48 replacements, including 7 that were damaged during the recent three-day storm in late February.
To ensure that the City has adequate inventory on-hand to replace knockdowns in a timely fashion, staff is requesting a one-time appropriation in the amount of $90,000, as identified in Attachment A. Staff is also requesting an ongoing appropriation of $50,000 commencing in FY 2023-24, contingent upon the annual appropriation of funds by the City Council in future fiscal years to increase the total number of replacement streetlight poles on-hand, as identified in Attachment B.
It is important to note that in approximately 70 percent of all knockdown instances, the City recovers the full cost of replacing damaged streetlights from the responsible party’s auto insurance. As such, the majority of annual streetlight replacement expenditures constitute “pass
through charges,” which are ultimately recovered by the City through insurance claims.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
The recommended action requires a one-time appropriation of $70,000 in the current fiscal year and an ongoing appropriation of $120,000 commencing in Fiscal Year 2023-24 from Streetlight Maintenance District Fund Balance (Fund 359) to support the expansion of streetlight services in the Tesoro Del Valle and Skyline Ranch communities.
The recommended action also requires approval of a one-time appropriation of $90,000 in the current fiscal year and an ongoing appropriation of $50,000 commencing in Fiscal Year 2023-24 from Streetlight Maintenance District Fund Balance (Fund 359) to support the replacement of streetlight poles damaged as a result of traffic collisions.
The City will realize offsetting annual revenue of $71,082 in the form of new and ongoing SMD special assessment levies associated with the Tesoro annexation commencing in Fiscal Year 2023-24. All ongoing appropriation requests will be contingent upon the approval funds by the City Council during subsequent budget years.
ATTACHMENTS
SMD Requested Budget Appropriations - Attachment A
SMD Requested Budget Appropriations - Attachment B