REQUEST FOR CITY COUNCIL ACTION
DATE: 05/01/2024
TO: Honorable Mayor and City Council Members
FROM: Finance Department
SUBJECT:
Title
RESOLUTION DECLARING INTENTION TO LEVY AND COLLECT ASSESSMENTS WITHIN LIGHTING MAINTENANCE DISTRICT NO. 2003-1 FOR FISCAL YEAR 2025, APPROVING PRELIMINARY ENGINEER’S REPORT, AND PROVIDING NOTICE OF PUBLIC HEARING ON PROPOSED ASSESSMENTS
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EXECUTIVE SUMMARY:
Lighting Maintenance District No. 2003-1 provides lighting maintenance and operating services for the streetlights, traffic signals, and related appurtenances within the District’s boundaries. Adoption of the recommended resolution will declare the City's intent to levy and collect Fiscal Year 2025 assessments, approve the preliminary Engineer's Report, and set a public hearing for June 5, 2024. At that time, the City Council may approve the annual assessments and order the levy of assessments within the District.
RECOMMENDED ACTION:
Recommended action
That the City Council adopt Resolution No. 2024-019, declaring intention to levy and collect assessments within Lighting Maintenance District No. 2003-1 for Fiscal Year 2025, approving preliminary Engineer's Report, and providing notice of public hearing on proposed assessments.
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BACKGROUND & HISTORY:
Lighting Maintenance District No. 2003-1 (“LMD 2003-1” or “District”) was established in 2003 in accordance with the provisions of the Landscaping and Lighting Act of 1972 (the "1972 Act"). The purpose of the District is to provide lighting maintenance and operating services for the streetlights, traffic signals, and related appurtenances within the District’s boundaries.
The annual assessments proposed to be levied within the District will pay for the maintenance services during Fiscal Year 2025. The services provided include all necessary operations, administration, capital replacements, and maintenance required to keep the above-mentioned improvements in a healthy and satisfactory working condition.
ANALYSIS:
The State of California Street and Highways Code Section 22500 requires an annual review of the assessments levied by the assessment districts formed under the 1972 Act. In order to levy and collect special assessments within the districts, an Engineer's Report must be prepared, which provides details on the improvements that are maintained and the estimated budgets for the District.
On April 17, 2024, the City Council adopted Resolution No. 2024-017 to initiate the proceedings to levy and collect assessments for the District for Fiscal Year 2025, appointed Spicer Consulting Group, LLC as the engineer of record, and ordered the preparation of an Engineer's Report for the District.
Attached to this report is the preliminary Engineer's Report (the “Report”) for the District, which includes a detailed description of the existing improvements within the District, the estimated maintenance costs, the methods of assessment apportionment, and a diagram showing the boundaries. The report also provides analyses of the District's financial status.
FINANCIAL IMPACT:
The cost of construction, installation, operation, servicing, and maintenance of the District will be funded by the assessments levied and collected within the District. For Fiscal Year 2025, the assessment revenues, in combination with the General Benefit Contribution, are projected to be sufficient to cover the operating costs for the District during the same fiscal period. The estimated surplus will be added to the capital reserve for future capital improvements within the District.
Below is an overview of the District’s estimated assessment revenues and proposed expenditures for Fiscal Year 2025. Detailed information can be found in the attached Report.
1) Benefit received by non-residents of the District for the major/arterial streetlights, traffic signals, traffic control devices and landscape improvements. This amount is contributed by the City’s General Fund.
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the common sense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. 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 activity is not subject to CEQA. This action merely declares the City's intent to levy and collect assessments within the District for Fiscal Year 2025, and there is no possibility that adopting the resolution will have a significant effect on the environment. Therefore, no environmental analysis is required.
PREPARED BY: ERMA MONTANO, SENIOR FINANCIAL ANALYST
REVIEWED BY: KIM SITTON, FINANCE DIRECTOR
Attachments:
1. Exhibit 1 - FY 2025 LMD 2003-1 Preliminary Engineer’s Report
2. Exhibit 2 - Resolution No. 2024-019