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HomeMy WebLinkAboutItem 8.2 Street Lighting Maintenance Assess District CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: April 23 , 1984 SUBJECT Dublin Street Lighting Maintenance Assessment District EXHIBITS ATTACHED Resolution t``?� RECOMMENDATI67N' Approve Resolution directing the preparation of the Annual Report for the Maintenance Assessment District FINANCIAL STATEMENT: Estimated 1984-85 Street Lighting Budget $105 , 000 DESCRIPTION On August 2 , 1983 the City Council established a street lighting maintenance assessment district to supplant the County Service Area which has paid for the maintenance and energy cost of street lights within the City of Dublin . At that time a lawsuit testing the constitutionality of maintenance assessment districts was being tested in the City of San Jose . Because of that lawsuit , the City Council levied a zero assessment after forming the district and requested that the City be permitted to remain in the County Service Area for street lighting for another year . Last year Staff indicated that the estimated cost of maintenance and energy for the street lighting system within the City would be $125 ,000 for Fiscal Year 1983-84 . This figure was based on a number of street lights being added to the City ' s street lighting system and an estimated 5 percent increase in PG&E energy rates . Since that time, PG&E substantially reduced the energy rate charged for street lights owned by PG&E while at the same time increasing the rate charged to cities for city owned street lights . In addition, PG&E has not been able to install the street lights requested by the City within the timeframe anticipated by PG&E and Staff last August . As a result, the estimated cost that the County Service Area for street lighting will bear for the Dublin street lighting system for Fiscal Year 1983-84 is approximately $95 , 000 . Since the County Service Area budget was based on an estimated cost of $125 , 000 , it is quite likely that the assessments received by the County Service Area will exceed actual costs for 1983-84 . These funds should be available to the City for Fiscal 1984-85 to offset some of the city street lighting costs . ---------------------------------------------------------------------------- COPIES TO: ITEM N0. ,z In addition to the developments above, it is a strong possibility that a constitutional initiative will qualify for the November ballot which would preclude utilization of maintenance assessment districts which have been formed after August 15 , 1983 . This initiative is popularly referred to as the Jarvis Initiative . Since the City of Dublin formed its assessment district on August 2 , 1983 , there is a possiblity that the City may not be affected by the initiative . In any event, it is quite likely that there will be a substantial amount of litigation if the initiative passes . Staff has identified the following options for the City Council with respect to the financing of the city street lights : 1 ) Request the County to levy a zero assessment for Fiscal Year 1984-85 with the City levying the assessment directly to cover street lighting costs . Once collected, these funds then could be placed in a trust fund, pending the outcome of the Jarvis Initiative and any subsequent lawsuits . The risk to the City would be that the City may have to refund to the ` property owners those funds collected during the 1984-85 Fiscal Year if the Jarvis Initiative passes and is vindicated in the courts . 2 ) City would request the County to levy a zero assessment for the Fiscal Year and would then levy a direct assessment to cover street lighting maintenance costs and pay for these costs with the assessments collected. The risk would be that the City may have to refund the assessments out of the City ' s General Fund. 3 ) Levy a zero assessment for the Dublin lighting district and request the County to again collect the funds under the County Service Area for lighting . This option would present no risk to the City, however the City would not have direct control over those funds collected by the County until such time that the City withdrew from the County Service Area. Staff has discussed the various options with the District Legal Counsel , Jones Hall Hill and White, who has recommended if the City does levy the assessments, this money be placed in a trust fund and that the City pay the lighting bills out of the General Fund pending the outcome of the Jarvis Initiative . It is Staff ' s recommendation that the City Council authorize Staff to proceed with option number 1 by approving a resolution directing the engineer to prepare the annual report for the maintenance assessment district . This recommendation is based on the City ' s original commitment to eventually withdraw from the County Service Area and form its own district . RESOLUTION NO. - 84 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ------------------------------------- A RESOLUTION DIRECTING PREPARATION OF ANNUAL REPORT FOR MAINTENANCE ASSESSMENT DISTRICT CITY OF DUBLIN STREET LIGHTING MAINTENANCE ASSESSMENT DISTRICT WHEREAS, August 2 , 1983 , by its Resolution No. 38-83, this City Council ordered the formation of and levied the first assessment within the City of Dublin Street Lighting Maintenance Assessment District, (the "District" ) pursuant to the provisions of the Landscaping and Lighting Act of 1972 (commencing at Section 22500 of the California Streets and Highways Code) (hereinafter "the Act" ) ; and WHEREAS, Sections 22620 et seq. of the Act provide for the levy of annual assessments after formation of the District; and WHEREAS, within said District, the existing and proposed improvements and any substantial changes proposed to be made to the existing improvements are generally as described on Exhibit A attached hereto and hereby made a part hereof . NOW, THEREFORE, BE IT RESOLVED that the Dublin City Council does hereby designate the Dublin City Engineer as Engineer for purposes of preparing and filing with the Clerk a written report in accordance with Section 22565 et seq. of the Act ; said Engineer is hereby directed to apportion said assessments in accordance to the benefits received from said improvements by the lots, pieces and parcels of land within the District, and said Engineer is hereby directed to accomplish such preparation and filing forthwith. PASSED, APPROVED AND ADOPTED this day of 1984 . AYES : NOES : ABSENT: Mayor ATTEST: City Clerk "EXHIBIT A" The District improvements include existing and proposed light poles, fixtures and appurtenances throughout the City. The maintenance and energy cost of these improvement are being paid for through this District. Y