TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, 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 and Landscaping Assessments (Finance Director Moe).
ADOPT
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council adopt Resolution No. 15-0012 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 2015-2016 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 since 1995-1996, and costs have continued to rise and exceed the revenue generated by the assessments, the Street Lighting and Landscape Fund as of fiscal year 2006-2007 has depleted its fund balance. As a result, the General Fund continues to subsidize the fund. The preliminary estimate for the subsidy in the current fiscal year (2014-2015) is $240,000. A Proposition 218 vote is required to raise the assessments (City Council reviewed the options for raising assessments but has deferred such action).
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 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 June 16, 2015.
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 2015-2016, the preliminary total assessment is $399,000; $378,000 from private property owners, plus a General Fund contribution toward Streetscape of $21,000 for the City's property in the district. Based on preliminary analysis, the annual subsidy provided by the General Fund for Street Lighting in fiscal year 2015-2016 will be slightly lower than that indicated in the fiscal year 2014-2015 adopted budget: $244,000. The fiscal year 2015-2016 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 5, 2015, the Engineer's 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 June 16, 2015, 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 2015-2016.
CONCLUSION:
Staff recommends that the City Council adopt Resolution No. 15-0012 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 2015-2016 pursuant to the Landscaping and Lighting Act of 1972.
Attachments:
1. Resolution No. 15-0012
2. Lighting and Landscape Assessment Districts Map