HomeMy WebLinkAbout1996-08-27 - AGENDA REPORTS - SMD TRANSFER LACO (2)NEW BUSINESS
DATE:
SUBJECT:
DEPARTMENT:
AGENDA REPORT
City Manal
Item to be
Amelia Hutchinson
August 27, 1996
STREET LIGH'T'ING MAINTENANCE DISTRICT TRANSFER FROM
LOS ANGELES COUNTY
Building & Engineering Services
The City Council requested that staff evaluate the feasibility of assuming responsibility for
the operations and maintenance of street lights within Los Angeles County's lighting
assessment districts.
In the City of Santa Clarita, 14,000 street lights are'currently located along roadways to
provide illumination of roadways and sidewalks for enhanced safety. Maintenance and
electric costs related to these street lights are funded through Los Angeles County's Lighting
Maintenance Districts 1867 and LLA -1.
County Lighting Districts: The County formed District 1867 under the provisions. of the
Improvement Act of 1911. This act provided the County with ad valorem property tax
revenue to install, construct, and maintain street lighting. In 1979 the County formed an
additional district (LLA -1) under the Landscape and Lighting Act of 1972 to supplement
revenues received through District 1867. Funds received through LLA -1 are collected
through annual assessments paid by property owners within the district each year.
District 1867 generated approximately $1,000,000, and LLA -1 generated $35,700 in revenues,
for a total of $1,035,700 in 1995-96. Annual costs to provide maintenance and electrical
service for 1995-96 totaled $1,178,500. Ongoing costs exceed ongoing revenues by $142,800.
This imbalance is a result of reductions in the annual assessments of LLA -1 from $12 to $1
per unit over the past five years. The differential between ongoing costs and revenues is
currently being funded through use of the districts' relatively large reserve fund of
approximately $2,000,000. These reserve funds could be more effectively utilized to improve
the City's deficient lighting infrastructure.
Transfer of County Districts to the City: The County of Los Angeles has adopted a policy to
encourage cities to assume responsibility for administering districts of various kinds,
including landscape and lighting districts and drainage benefit assessment districts.
Administration of these districts does not add costs to the City's General Fund. Each district
budget includes funding for maintenance, technical and annual reporting, fee collection costs,
mapping, and administration.
Agenda item:
STREET LIGHTING MAINTENANCE DISTRICT TRANSFER
FROM LOS ANGELES COUNTY
August 27, 1996 - Page 2
; The benefits of the transfer include the following.
• Increased responsiveness to lighting problems and community lighting preferences;
• Standardization of planning and design;
• Reduced dependence on coordination with and approval from the County regarding
development issues;
• Reduced administration costs. Currently the County administration costs are $136,000
per year (or $13 per light); and
• Enhanced quality and aesthetics through upgrading of outdated lighting.
There are no disadvantages related to the transfer.
There is a possibility that an assessment rate increase may be required in the future as a result
of recent rate reductions by the County. Existing rates in LLA -1 are $4 less than the amount
needed to cover ongoing costs.
The assumption of administration duties for the lighting districts from the County by the City
would result in a net gain for the City in the areas of cost, citizen/local control, coordination,
aesthetics, and customer service. Assessment rateswill need to be adjusted within the next five
years to equalize ongoing costs with ongoing revenues.
Transfer Process. The transfer of administrative oversight of the County districts requires
significant staff and City Council effort. Adoption of several resolutions and.joint resolutions
will be required to accomplish the transfer. Should the City Council wish to move forward with
the transfer process, staff will complete the required analyses and reports and return to the
City Council for further action. The earliest date on which the City could assume responsibility
for the lights is July 1, 1997.
The City Council direct staff to proceed with the transfer of Los Angeles County Districts 1867
and LLA -1 to the City of Santa Clarita.
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