City Council
Report
City Council Meeting: April 23, 2024
Agenda Item: 5.I
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To: Mayor and City Council
From: David Martin, Director, Administration
Subject: Adoption of a Resolution that Amends Resolution No. 10325 (CCS) in order to Clarify the Authorization to Levy and Place the Main Street Business Area Festoon Lighting and Sidewalk Cleaning Assessments on the L.A. County Property Tax Rolls Each Year
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines.
2. Adopt a Resolution to amend Section 6 and Section 8 of Resolution No. 10325 (CCS) in order to clarify that Council authorized the levy and placement of the Main Street Business Area Festoon Lighting and Sidewalk Cleaning assessments on the Los Angeles County property tax rolls to be done annually and not just for FY 2008-2009.
Summary
Council adopted Resolution No. 10325 (CCS) at its meeting on July 22, 2008, which approved the formation of the Main Street Business Area Festoon Lighting and Sidewalk Cleaning Assessment District (District) and approved and confirmed the levy of the assessments for the District for FY 2008-09 as provided in a detailed Engineer’s Report. The assessments are supported by the Engineer’s Report that was prepared by a registered professional engineer certified by the State of California and the process followed all required procedures for the formation of an assessment district.
The City submitted Resolution 10325 (CCS) annually thereafter to the Los Angeles County Auditor-Controller to place the assessments as shown on the Engineer’s Report 2 of 5
on the property tax rolls. With the submission of the District assessments for FY 2023- 24, the Los Angeles County Auditor-Controller noted that Resolution No. 10325 (CCS) did not clearly allow the Auditor-Controller to levy and place the District assessments on the property tax rolls annually, rather than just for just FY 2008-09. The Los Angeles County Auditor-Controller requested that the City clarify Resolution No. 10325 to authorize the annual levy and placement of the Main Street Lighting and Sidewalk Cleaning assessments on the property tax roll prior to the submission of the assessments for FY 2024-25.
Staff recommends that Council adopt the proposed Resolution to amend Sections 6 and 8 of Resolution No. 10325 (CCS) to clarify the City and County’s authorization to levy and place the Main Street Lighting and Sidewalk Cleaning assessments on the property tax rolls each year.
Discussion
On May 27, 2008, the City of Santa Monica (the “City”) adopted Resolution No. 10294 (CCS) declaring its intention to set a public hearing to consider the formation of the Main Street Business Area Festoon Lighting and Sidewalk Cleaning Assessment District (the “District”), approved the final Engineer’s Report for the proposed District pursuant to the provisions of the “Benefit Assessment Act of 1982” (commencing with California Government Code Section 54703) (the “Act”) and in accordance with Article XIIID of the California Constitution and the Proposition 218 Omnibus Implementation Act (commencing with California Government Code Section 53750), and authorized the City Manager and Parking Authority Executive Director to affirmatively sign ballots on behalf of City and Parking Authority owned properties.
The City notified the property record owners within the proposed District that the proposed assessment for bulb placement would be levied for five years and the assessment for operation and maintenance of the festoon lights and sidewalk cleaning would be levied annually and that the maximum annual maintenance assessment rates for festoon lights and sidewalk cleaning would increase each subsequent fiscal year by the annual change in the Consumer Price Index (“CPI”), during the preceding year. 3 of 5
Council held a public hearing regarding the formation of the District at its July 22, 2008 meeting. At the conclusion of the public hearing, the assessment ballots received by the City were tabulated by the City Clerk and a majority protest did not exist to form the District nor did a majority protest exist to levy the assessments. The District was formed to fund the continued operation and maintenance of the decorative lighting hung along Main Street and to fund supplemental sidewalk cleaning within the District, beginning at Main Street and Pico Boulevard and extending south along Main Street to the City border just south of Marine Street.
Council adopted Resolution No. 10325 (CCS) which approved forming the Main Street Business Area Festoon Lighting and Sidewalk Cleaning Assessment District and authorized the levy of the assessments for FY 2008-09 and subsequent fiscal years as provided in the Engineer’s Report. It was the intent of the Engineer’s Report that the District would continue to exist and would not have an expiration date.
On August 3, 2023, the Los Angeles County Auditor-Controller notified the City that Resolution No. 10325 (CCS) submitted along with the assessments for fiscal year 2023- 24 did not clearly provide that the Auditor-Controller is authorized to levy the Main Street lighting and sidewalk cleaning assessments annually and place those assessments on the property tax rolls each year. This clarification is necessary to authorize the Los Angeles County Auditor Controller to levy and place the assessments on the property tax rolls annually. Therefore, the Auditor-Controller’s Office requested that the City clarify Resolution No. 10325 prior to submitting the FY 2024-25 assessment documents, which typically has a deadline of early August each year.
To ensure that the District assessments for the Main Street lighting and sidewalk cleaning are levied for FY 2024-25, and each subsequent year, and placed on the property tax rolls annually, staff requests Council adopt the proposed resolution to amend Sections 6 and 8 of Resolution No. 10325 (CCS). The proposed resolution will clarify that the levy and placement of the assessments on the property tax rolls should occur annually. If this action is not approved, then the Los Angeles County Auditor- 4 of 5
Controller will not levy the Main Street lighting and sidewalk cleaning assessments and the Main Street Business Improvement Association (MSBIA) will not receive the needed funds to continue the operation and maintenance of the decorative lights and to fund supplemental sidewalk cleaning.
Property taxes are collected by the County and then remitted to the City. The City retains five percent (5%) as an administrative fee and the remaining balance is distributed to the MSBIA, the Business Improvement District (BID) that manages the District. In FY 2022-23, $52,644 was received from the County. The City retained $2,713 as the administrative fee and $49,931 was distributed to MSBIA.
Environmental Review
The resolution is exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines. The contract amendment is covered by the common sense exemption which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The resolution to continue the assessment district would not result in adverse physical impacts on the environment, and as such, is exempt from CEQA.
Past Council Actions
Meeting Date Description
07/22/2008
(attachment A)
Conduct public hearing and adopt Resolution forming the Main Street Business Area Assessment District
05/27/2008
(attachment B)
Adopt a Resolution of Intention to consider forming a Main Street Business Area Assessment District.
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Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the recommended action. Staff will return to Council if specific budget actions are required in the future.
Prepared By: Erika Cavicante, Senior Development Analyst Approved Forwarded to Council
Attachments:
A. Formation of Main Street Lighting and Sidewalk Cleaning Assessment District B. Adopt Resolution of Intention for Proposed Main Street Lighting and Sidewalk Cleaning Assessment District
C. Resolution to Amend Resolution No. 10325 (CCS)
D. Engineer's Report