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HomeMy WebLinkAboutItem 8.2 Street Lighting Costs S20- C CITY OF DUBLIN AGENDA STATEMENT Meeting Date: June 14, 1982 SUBJECT: Street Lighting EXHIBITS ATTACHED: Resolution for Annexation RECOMMENDATION: Consider alternatives and direct staff to take appropriate action. FINANCIAL STATEMENT: If City is within street light assessment district property owners will be assessed for street lighting costs, if not the City will bear approximately $66,000 in street lighting expense directly. DESCRIPTION: Staff has had considerable discussion with the County of Alameda regarding the City of Dublin's status with respect to County Service Area SL-1070-1, which has provided street lighting service to the City of Dublin and the unincorporated area. In accordance with Section 25210.90 of the Govern- ment Code, the City of Dublin became automatically excluded from the County Service Area upon incorporation. The County Service Area is continuing to provide street lighting services to the City of Dublin until July 1, 1982, because Dublin residents have paid their assessments for the end of the fiscal year. (Please note that property taxes are paid on a fiscal on a fiscal year basis not a calendar year basis i .e. the cost of street lighting services for fiscal year 1981-82 are covered by December 1981 and April 1982 assessments) . In that the City street lights have been dropped from the County Service Area (CSA) , funds which have been paid by Dublin residents to the CSA and have not been spent by or obligated by July 1, 1982 are paid to the City. The County has not indicated whether or not such a surplus will exist. In addition beginning July 1, 1982 the City will be responsible for the provision of street lighting and PG&E will bill the City directly for energy and maintenance costs. The estimated cost for fiscal year 1982-83 is $66,000. This amount provides for anticipated rate increases only, and not additional lights. The assessment for street lighting would be dropped from residents' property tax bill . Since significant reductions in state subventions to the City of Dublin are presently being considered by the State Legislature for Fiscal Year 1982-83, its important to recognize the impact that funding of street lights directly from City funds might have on the City's budget in the future. As energy costs and more street lights are added as a result of new development, a greater burden will be placed on the City budget. L Its important for the City Council to recognize that there are alternatives to the direct assumption of street lighting costs. I have outlined these alternatives below: Alternative 1 The City could request annexation to County Service Area SL-1970-1. If approved by the Board of Supervisor's, this annexation would result in street lighting services being provided as they were prior to incorporation. An assessment for street lighting would be placed on the property tax bill of Dublin property owners. The City would be able to review any County proposals for additional lights, rate distrubution, etc. but the Board of Supervisor's would make the final determination with respect to these matters. If the City Council selected this alternative it would have to adopt the attached resolution at the Council meeting in order to meet the County Auditors deadline tc enter the assessment on the tax roll . Questions have been raised by Council Members as to the equity of this alternative in that Dublin residents have paid higher assessments than those residents in the unincorporated area. The Alameda County Road Department has indicated that this difference in rate is due to the following: 1) There are more street lights per capita in Dublin than in the unincorporated area. 2) The rate distribution formula results in a situation where residential property owners are subsidizing some larger commercial properties. Alternative 2 The City could form its own street lighting assessment district under the Street Lighting and Landscaping Act of 1972. If the City Council selected this alternative, a consulting engineer to develop rate distribution formulas for residential and commercial areas would have to be hired. In addition the City would have to retain the services of a law firm that specializes in the formation of assessment districts. It is somewhat doubtful that the necessary work could be accomplished, in order to meet the County Auditor's deadline for the tax roll in August. If the City Council did select this alternative and did not make that deadline, the district would be ready for fiscal year 1983-84. However during fiscal year 1982-83 the costs for street lighting would be directly borne by the City. It should be pointed out that if neither Alternative 1 or 2 are selected, property owners would realize some direct benefit from incorporation, with the reduction of their property tax bill . However, the City would lose a revenue souce which may have a significant impact on future City budgets, if the economy and revenue picture at the state level do not improve. ♦ .4, RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN A RESOLUTION APPLYING FOR ANNEXATION TO ALAMEDA COUNTY SERVICE AREA NO. SL-1970-1 FOR STREET LIGHTING WHEREAS, on February 1 , 1982, the City of Dublin became incorporated as a General Law City under the laws of the State of California; and WHEREAS, prior to incorporation the County Service Area provided street lighting service to residents in the Dublin area; and WHEREAS, the County Service Area indicated that it would continue to provide street lighting service to the City at the City's discretion; and WHEREAS, the City Council has determined that at this time the County Service Area is best equipped to provide street lighting service to residents of the City of Dublin, NOW, THEREFORE BE IT RESOLVED that the Dublin City Council hereby requests annex- ation to the County Service Area, and further that such participation be conditioned as follows: 1 . The City of Dublin will review any proposed changes in the provision of street lighting service in the community, including changes in the number and type of lights, the level of service, and the assessment rate. 2. The City of Dublin will comply with County Service Area Law. 3. The City of Dublin is not requesting a distribution of property taxes for the provision of street lighting service. PASSED, APPROVED AND ADOPTED, this 21st day of June, 1982, by the following vote: AYES: COUNCILMEMBERS NOES: COUNCILMEMBERS ABSENT: COUNCILMEMBERS Mayor ATTEST: City Clerk