TO:
Honorable Mayor and Members of the City Council
THROUGH:
John Jalili, Interim City Manager
FROM:
Bruce Moe, Finance Director
Henry Mitzner, Controller
SUBJECT:Title
Resolution Ordering Plans, Specifications, Cost Estimates and Engineer's Report for Annual Street Lighting Assessment (Finance Director Moe).
ADOPT RESOLUTION NO. 14-0013
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council adopt Resolution No. 14-0013 ordering the preparation of plans, specifications, cost estimates and the engineer's report for the annual renewal of the Landscaping and Lighting District for fiscal year 2014-2015 pursuant to the Landscaping and Lighting Act of 1972.
Body
FISCAL IMPLICATIONS:
The assessment engineering cost for the Landscaping and Lighting District is $7,000 and is budgeted in the Public Works department.
It is important to note that because assessments have been fixed for many years, and costs have continued to rise and exceed the revenue generated by the assessments, the Street Lighting and Landscape Fund has depleted its fund balance. As a result, the General Fund is forced to subsidize the fund. The projected subsidy in the current fiscal year (2013-2014) is $229,000. A Proposition 218 vote is required to raise the assessments. Presently the City is studying long term financing of the Street Lighting and Landscaping Districts. This study will be completed in Fall 2014 and will have no bearing on the 2014-2015 fiscal year.
BACKGROUND:
The City provides for the operations and maintenance of Street Lighting and the Downtown Streetscape via the Street Lighting and Landscaping Assessment District. The District, which was formed pursuant to the Landscaping and Lighting Act of 1972, is comprised of separate street lighting districts for the majority of the City, and the lighting and landscaping services provided for the Downtown.
DISCUSSION:
The District must be renewed annually through a series of City Council resolutions, culminating with a public hearing. The public hearing and adoption of a final resolution are scheduled for the Council Meeting of July 1, 2014.
In order to renew the districts, an assessment engineer must review and develop the benefit assessments for each parcel. Those assessments are based on the proposed budget for the upcoming fiscal year commencing July 1 subject to the constraints of Proposition 218. For FY 2014-2015, the preliminary total assessment is $397,000; $377,000 from private property owners, plus a General Fund contribution toward Streetscape of $20,000 for the City's property in the district. Based on preliminary analysis, the annual subsidy provided by the General Fund to the Street Lighting in fiscal year 2014-2015 will be the same as estimated in the fiscal year 2013-2014 adopted budget: $229,000. The fiscal year 2014-2015 opening fund balance of the Street Lighting Fund will be $0- and subsidies are required to match the excess of expenditures over revenues.
The first step in this annual process is for Council to pass a Resolution of Initiation tonight, which authorizes the preparation of an Engineering report on the District. Then, on May 6, 2014, the Engineering Report will be submitted to Council, along with a Resolution of Intention, which authorizes proceedings for the annual levy and collection of assessments. Finally, on July 1, 2014, the public hearing will be held at which time City Council will be asked to adopt a resolution providing for the levy and collection of street lighting assessments for the fiscal year 2014-2015.
In order to address funding shortfalls, City Council recently authorized a contract with the firm of Harris and Associates to perform preliminary analyses of Storm Water fees as well as Street Lighting and Landscaping District assessments. Those analyses will assist the City in determining necessary fees and assessments to support these activities. The results of the analyses will be available in Fall 2014.
CONCLUSION:
Staff recommends that the City Council adopt Resolution No. 14-0013 ordering the preparation of plans, specifications, cost estimates and the engineer's report for the annual renewal of the Landscaping and Lighting District for fiscal year 2014-2015 pursuant to the Landscaping and Lighting Act of 1972.
Attachments:
1. Resolution No. 14-0013
2. Lighting and Landscape Assessment Districts Map