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HomeMy WebLinkAboutItem 10c - Reschedule Citywide Lighting Assessments Public Hearing STAFF REPORT PUBLIC WORKS SERVICES DEPARTMENT DATE: June 16, 2026 TO: Honorable Mayor and City Council FROM: Paul Cranmner, Public Works Services Director By: Carmen Masud, Deputy Public Works Director SUBJECT: RESCHEDULE THE PUBLIC HEARING FOR THE FISCAL YEAR 2026-27 LEVY AND COLLECTION OF THE ARCADIA CITYWIDE LIGHTING DISTRICT NO. 1 CEQA: Not a Project Recommendation: Approve SUMMARY The Citywide Lighting District No. 1 (“Citywide Lighting District” or “District”) was formed in the City of Arcadia pursuant to state law for the purpose of partially funding the ongoing operation, maintenance, and servicing of the City’s street lighting system. At the June 2, 2026, City Council Meeting, the City Council adopted Resolution Nos. 7690 through 7692, which initiated the proceedings for the annual levy and collection of assessments, approved the preliminary Engineer’s Report, and set the public hearing for the June 16, 2026, City Council Meeting. The notice of Public Hearing was not published in time to meet the circulation requirement. In accordance with The Landscaping and Lighting Act of 1972, the notice for a public hearing must be published at least once in the local newspaper of general circulation at least 10 days prior to the public hearing. It is recommended that the City Council reschedule the public hearing for the Fiscal Year 2026-27 Levy and Collection of the Arcadia Citywide Lighting District No.1 to the July 21, 2026, City Council Meeting. Reschedule the Citywide Street Lighting Assessments Public Hearing June 16, 2026 Page 2 of 3 BACKGROUND At the June 2, 2026, City Council Meeting, the City Council adopted Resolution Nos. 7690 through 7692, which initiated the proceedings for the annual levy and collection of assessments, approved the preliminary Engineer’s Report, and set the public hearing for Tuesday, June 16, 2026, at 7:00 p.m., or as soon thereafter as feasible. See attached, June 2, 2026, Citywide Street Lighting Assessment District Resolutions staff report. In accordance with the Landscaping and Lighting Act of 1972, the notice for a public hearing must be published at least once in the local newspaper of general circulation, at least ten days prior to the public hearing. On Wednesday, June 3, 2026, the Public Hearing Notice and resolution were sent to the Arcadia’s local newspaper of general circulation. Unfortunately, the newspaper changed the time cutoff to submit for publication and staff missed the new deadline by one hour; therefore, the notice of public hearing was not published in time to meet the circulation requirement. DISCUSSION To meet the requirements of the Landscaping and Lighting Act of 1972, it is recommended that the City Council reschedule the public hearing for the Fiscal Year 2026-27 Levy and Collection of the Arcadia Citywide Lighting District No. 1 to the July 21, 2026, City Council Meeting. Although the Landscaping and Lighting Act of 1972 requires the resolution of intention to be published with the notice of public hearing, since the Intention Resolution adopted on June 2, 2026, called for a public hearing on June 16, 2026, at 7:00pm, or as soon thereafter as feasible, a new Intention Resolution is not necessary. The notice of public hearing will include information on the rescheduling of the public hearing date and will be published on June 22, 2026. The additional time will ensure that the public hearing is published pursuant to the Landscaping and Lighting Act of 1972. ENVIRONMENTAL ANALYSIS The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”) under Section 15061(b)(3) of the CEQA Guidelines, as it can be seen with certainty that it will have no impact on the environment. Reschedule the Citywide Street Lighting Assessments Public Hearing June 16, 2026 Page 3 of 3 FISCAL IMPACT Fees collected under the Citywide Lighting District will help defray the total maintenance costs of lighting in the subject areas. Upon conclusion of the public hearing and adoption of the Engineer’s Report, a total of $603,980 will be levied and collected under the Citywide Lighting District. RECOMMENDATION It is recommended that the City Council determine that this action does not constitute a project under the California Environmental Quality Act (“CEQA”); and reschedule the public hearing for the Fiscal Year 2026-27 Levy and Collection of the Arcadia Citywide Lighting District No. 1 to the July 21, 2026, City Council Meeting. Attachments: June 2, 2026, Citywide Street Lighting Assessment staff report Resolution No. 7690 Resolution No. 7691 Resolution No. 7692 STAFF REPORT PUBLIC WORKS SERVICES DEPARTMENT DATE: June 2, 2026 TO: Honorable Mayor and City Council FROM: Paul Cranmer, Public Works Services Director By: Carmen Masud, Deputy Public Works Director SUBJECT: RESOLUTIONS INITIATING PROCEEDINGS FOR THE ANNUAL LEVY AND COLLECTION OF ASSESSMENTS, APPROVING THE PRELIMINARY ENGINEER’S REPORT, DECLARING INTENTION TO LEVY AND COLLECT ASSESSMENTS FOR FISCAL YEAR 2026-27, AND APPOINTING A TIME AND PLACE FOR A PUBLIC HEARING FOR THE ARCADIA CITYWIDE LIGHTING DISTRICT NO. 1 RESOLUTION NO. 7690 INITIATING PROCEEDINGS FOR THE ANNUAL LEVY AND COLLECTION OF ASSESSMENTS FOR THE ARCADIA CITYWIDE LIGHTING DISTRICT NO. 1, PURSUANT TO THE PROVISIONS OF PART 2 OF DIVISION 15 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE AND ORDERING THE PREPARATION OF THE ENGINEER’S REPORT CEQA: Not a Project Recommendation: Adopt RESOLUTION NO. 7691 APPROVING THE PRELIMINARY ENGINEER’S REPORT OF WILLDAN FINANCIAL SERVICES FOR THE ARCADIA CITYWIDE LIGHTING DISTRICT NO. 1 CEQA: Not a Project Recommendation: Adopt RESOLUTION NO. 7692 DECLARING ITS INTENTION TO LEVY AND COLLECT ASSESSMENTS WITHIN THE ARCADIA CITYWIDE LIGHTING DISTRICT NO. 1 FOR FISCAL YEAR 2026-27 AND APPOINTING A TIME AND PLACE FOR A PUBLIC HEARING CEQA: Not a Project Recommendation: Adopt Citywide Street Lighting Assessment District Resolutions June 2, 2026 Page 2 of 6 SUMMARY The Arcadia Citywide Lighting District No. 1 (“Citywide Lighting District” or “District”) was formed pursuant to state law for the purpose of partially funding the ongoing operation, maintenance, and servicing of the City’s street lighting system. As proposed, the District’s budget for Fiscal Year 2026-27 increased by 3.57%, or $53,000. The increase is due to an increase in electricity costs, vehicle maintenance costs, salaries and wages, and City liability insurance costs. Although the budget slightly increased, there is no proposed assessment rate increase for Fiscal Year 2026-27. The annual assessment rate for a single-family property owner in Zone 1 will remain at $23.69; and will remain at $40.33 in Zone 2. It is recommended that the City Council adopt the resolutions initiating proceedings for the annual levy and collection of assessments, approving the preliminary Engineer’s Report, declaring intention to levy and collect assessments for Fiscal Year 2026-27, and appointing a time and place for a public hearing for the Arcadia Citywide Lighting District No. 1. BACKGROUND Arcadia’s original Street Lighting District was established in the early 1950s through the Street Lighting Act of 1919 and was set to expire on June 30, 2010. Expiration of the District would have resulted in a loss of approximately $420,000 in annual revenue to the City beginning in Fiscal Year 2010-11, and would have impeded the ability to properly maintain the City’s streetlights. Renewal of the Street Lighting District could no longer be done through the Street Lighting Act of 1919 because the assessments were based on the value of real property, which Proposition 13 prohibits. Additionally, not all properties within the City were included in the original assessment district, which resulted in an inequity of assessments. To address this issue, in 2009, the City Council directed the formation of a Citywide Lighting District via the Landscaping and Lighting Act of 1972. Under this Act, assessments are based on the special benefit that street lighting provides to properties within the Citywide Lighting District area. Proposition 218 noticing and balloting requirements were met, and on August 3, 2010, the City Council adopted the Engineer’s Report for the formation of the Citywide Lighting District, approving the levy and collection of assessments beginning in Fiscal Year 2010-11. Citywide Street Lighting Assessment District Resolutions June 2, 2026 Page 3 of 6 To ensure appropriate allocation and annual levy of assessments based on proportional benefits, the Citywide Lighting District established two benefit zones to separate general benefit and special benefit. • Zone 1 includes properties along major thoroughfares and parcels that receive the general benefit of street lighting along arterial streets. • Zone 2 includes properties in residential neighborhoods that specifically benefit from maintenance of street lighting on local streets. In addition to the use of zones, the assessment rate utilizes a weighted methodology of apportionment, referred to as an Equivalent Benefit Unit (“EBU”). The proportional special benefit calculation for each parcel is determined by land use, number of units, and acreage. Furthermore, a benefit multiplier is also employed to account for varying density levels of street lighting within the City, which ranges from a standard level of street lighting to no street lighting. Some areas in the City were developed with less lighting on their streets. These sparsely lit neighborhoods still receive special benefits from local lights, even though their overall lighting density is less than those streets with full lighting; these properties receive 20% of the standard lighting density and pay 20% of the annual assessment rate. Properties in areas of the City that do not have street lighting do not pay a street lighting assessment fee. This methodology has been in place since Fiscal Year 2010-11. DISCUSSION The City’s Fiscal Year 2026-27 proposed budget for the Lighting District is $1,538,400, of which, $1,295,351, has been determined to be of special benefit to properties within the Citywide Lighting District, based on the assessment methodology. However, the District was established to fund only a portion of this amount. As a result, the City will be contributing approximately 60%, or $934,420, of the total street lighting budget, while the property owners (the “District”) will pay about 40%, or $603,980, of street lighting costs. The Citywide Lighting District budget for Fiscal Year 2026-27, as proposed, increased by 3.57%, or $53,000. The increase is due to an increase in electricity costs, vehicle maintenance costs, salaries and wages, and City liability insurance costs. Citywide Street Lighting Assessment District Resolutions June 2, 2026 Page 4 of 6 While increasing the rates is legally defensible to cover the increase in direct benefits to the property owners, the Citywide Lighting District Fund has a balance of $310,900. This balance is sufficient to cover emergency street lighting repairs and the additional budgeted costs for the year. As such, it is recommended that there be no proposed assessment rate increase for Fiscal Year 2026-27. The annual assessment rate for a single-family property owner in Zone 1 would remain $23.69, and $40.33 in Zone 2. As part of the District formation, an assessment range formula was developed to provide reasonable increases and inflationary adjustments that are associated with providing improvements for the Citywide Lighting District. The maximum rates for the Citywide Lighting District are annually adjusted by an amount not to exceed 3% each Fiscal Year. The adjusted Maximum Assessment Rate is calculated independently of the Citywide Lighting District’s annual budget. Although the assessment range formula allows the City to increase the assessment rate to the allowable maximum, Arcadia has never raised assessment rates to that level. For instance, while the Maximum Assessment Rate formula would allow the rates for a single-family property owner to be raised to $26.84 in Zone 1, and $45.63 in Zone 2, the proposed property owners’ assessment rates will not increase and will remain at $23.69 in Zone 1; and $40.33 in Zone 2. The applied assessment rates will continue to remain less than the maximum assessment rates that the City is allowed to use. Using a single-family property as the baseline for the assessment, the table below shows the annual assessment rate levied in Fiscal Year 2025-26, and the proposed Fiscal Year 2026-27 annual assessment rates for Zones 1 and 2: 1FY 2026-27 Maximum Assessment Rate for Zone 1 is $26.84; Zone 2 is $ 45.63 FY 25-26 Assessment Rate FY 26-27 Assessment Rate1 Lighting District Total Budget $1,485,400 $1,538,400 Zone 1 (Arterial Lights) Sparse Lighting $23.69 ($4.74) $23.69 ($4.74) Zone 2 (Local Lights) Sparse Lighting $40.33 ($8.07) $40.33 ($8.07) Citywide Street Lighting Assessment District Resolutions June 2, 2026 Page 5 of 6 At the June 16, 2026, City Council Meeting, a public hearing will be conducted to receive public comment regarding the levy and collection of assessments for the District. Fees can only be adopted after the conclusion of the public hearing. ENVIRONMENTAL ANALYSIS The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), under Section 15061(b)(3) of the CEQA Guidelines, as it can be seen with certainty that it will have no impact on the environment. FISCAL IMPACT Fees collected under the Citywide Lighting District will help defray the total maintenance costs of lighting in the subject areas. Upon conclusion of the public hearing and adoption of the engineer’s report, a total of $603,980 will be levied and collected under the Citywide Lighting District, remitted as part of the annual property tax payments. The levy will not exceed the cost of providing the subject services to the areas, nor will the levy exceed the Maximum Assessment Rates allowed. The levy has been set to ensure that the cost to property owners does not exceed the special benefit to each property. Based on the recommended assessments, the City of Arcadia will contribute $934,420 to the street lighting system in Fiscal Year 2026-27. RECOMMENDATION It is recommended that the City Council find that the following resolutions do not constitute a project under the California Environmental Quality Act (“CEQA”); and adopt: a. Resolution No. 7690 initiating proceedings for the annual levy and collection of assessments for the Arcadia Citywide Lighting District No. 1, pursuant to the provisions of Part 2 of Division 15 of the California Streets and Highways Code and ordering the preparation of the Engineer’s Report. b. Resolution No. 7691 approving the preliminary Engineer’s Report of Willdan Financial Services for the Arcadia Citywide Lighting District No. 1. Citywide Street Lighting Assessment District Resolutions June 2, 2026 Page 6 of 6 c. Resolution No. 7692 declaring its intention to levy and collect assessments within the Arcadia Citywide Lighting District No. 1 for Fiscal Year 2026-27 and appointing a time and place for a public hearing. Attachment No. 1: Resolution No. 7690 Attachment No. 2: Resolution No. 7691 Attachment No. 3: Resolution No. 7692