CC SR 20190716 01 - FY 19-20 Citywide LLMD
PUBLIC HEARING
Date: July 16, 2019
Subject:
Consideration and possible action to approve setting at zero the annual levy and assessments of the
existing Citywide Landscaping and Lighting Maintenance District for Fiscal Year 2018-19
Recommendation:
1) Conduct the public hearing on the proposed levy of the annual FY 19-20 Citywide Landscaping
and Lighting Maintenance District; and,
2) Adopt Resolution No. 2019___, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO
PALOS VERDES, DECLARING ITS INTENTION TO SET THE LEVY AT ZERO WITHIN THE CITYWIDE
LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT FOR FISCAL YEAR 2019-2020
PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972, PART 2 OF DIVISION 15 OF
THE CALIFORNIA STREETS AND HIGHWAYS CODE.
3) Report of Notice Given: City Clerk
4) Declare Public Hearing Open: Mayor Duhovic
5) Request for Staff Report: Mayor Duhovic
6) Staff Report & Recommendation: Ron Dragoo, City Engineer
7) Council Questions of Staff (factual and without bias):
8) Testimony from members of the public:
The normal time limit for each speaker is three (3) minutes. The Presiding Officer may grant additional time to a representative speaking
for an entire group. The Mayor also may adjust the time limit for individual speakers depending upon the number of spea kers who
intend to speak.
7. Declare Hearing Closed/or Continue the Public Hearing to a later date: Mayor Duhovic
8. Council Deliberation:
The Council may ask staff to address questions raised by the testimony, or to clarify matters. Staff and/or Council may also answer
questions posed by speakers during their testimony. The Council will then debate and/or make motions on the matter.
9. Council Action:
The Council may: vote on the item; offer amendments or substitute motions to decide the matter; reopen the hearing for additional
testimony; continue the matter to a later date for a decision.
RANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 07/16/2019
AGENDA REPORT AGENDA HEADING: Public Hearing
AGENDA DESCRIPTION:
Consideration and possible action to approve setting at zero the annual levy and
assessments of the existing Citywide Landscaping and Lighting Maintenance District for
Fiscal Year 2018-19
RECOMMENDED COUNCIL ACTION:
(1) Conduct the public hearing on the proposed levy of the annual FY 19-20 Citywide
Landscaping and Lighting Maintenance District; and,
(2) Adopt Resolution No. 2019___, A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF RANCHO PALOS VERDES, DECLARING ITS INTENTION TO
SET THE LEVY AT ZERO WITHIN THE CITYWIDE LANDSCAPING AND
LIGHTING MAINTENANCE DISTRICT FOR FISCAL YEAR 2019-2020
PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972, PART 2
OF DIVISION 15 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE.
FISCAL IMPACT: A zero assessment will require that the expenditures of the district
be paid for through other sources. Measure M funds will be used to cover the district’s
estimated expenditures of $878,507 for FY 19-20 (countywide half-cent sales tax
increase approved by voters on November 8, 2016).
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Ron Dragoo, PE, Principal/City Engineer
REVIEWED BY: Elias Sassoon, PE, Director of Public Works
APPROVED BY: Doug Willmore, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Resolution No. 2019___ (page A-1)
B. Amended Engineer’s Report
C. Notice of Public Hearing (page C-1)
BACKGROUND
On June 18, 2019, the City Council approved the Engineer’s Report for the FY 19-20
Citywide Landscaping and Lighting Maintenance District (District). The District was
formed in 1992 to levy assessments on parcels throughout the City to finance the ongoing
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operation, maintenance and servicing of median landscaping, street trees, street lighting
and traffic signals within the boundaries of the City.
The approved Engineer’s Report established the district assessments for FY 19-20. A
Resolution of Intention was also approved at the June 18, 2019 City Council meeting
declaring the council’s intention to set the levy at zero within the existing District, and
which set this evening’s public hearing on the proposed levy and collection of t hese
assessments. Staff placed a notice of the public hearing in the Palos Verdes Peninsula
News on June 27, 2019 (Exhibit C). In addition, the notice of the public hearing was
posted at the Civic Center on June 27, 2019.
DISCUSSION:
Annual Levy Procedures
On August 6, 1992, the City Council formed the District as an assessment district
pursuant to the Landscaping and Lighting Act of 1972 (1972 Act). The purpose of
forming the District was to provide additional funding for the ongoing operation,
maintenance and servicing of median landscaping, street trees, street lighting, and
traffic signals within the boundaries of the City.
The District has been funded through assessments on properties throughout the City.
Each parcel was assessed an amount, which is based on the relative benefit the parcel
receives from the District’s operations. The City ensures a fair and equitable sharing of
the costs by conducting an annual review of District operations, wherein the current
year’s expenses are reviewed, the ensuing year’s expenses are budgeted, and
assessments are determined based on this review.
The 1972 Act requires that proceedings be undertaken on an annual basis for any year
during which assessments will be levied and collected. The 197 2 Act also requires the
preparation of an Engineer’s Report in connection with the annual levy of assessments.
This year an Engineer’s Report has not been prepared as the levy will be set to zero.
The District is currently exempt from the requirements of Proposition 218 because the
assessments predate, and have not been increased since, the effective date of
Proposition 218 (July 1, 1997). Setting the levy to zero annually is required to keep the
District in place. As long as the District remains in place and is not dissolved, any future
City Council could elect to reinstate the levy of assessments up to the maximum amount
shown on page 5 of the Amended Engineer’s Report (Attachment B page B-5). The
process would be the same as in past years (i.e., resolution ordering the Engineer’s
Report, resolution approving the Engineer’s Report, setting a public hearing date and
resolution authorizing the levy of assessments).
Estimate of Cost for District
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The District’s engineer, Harris & Associates, Inc., conducted its last review of the
proposed District budget for FY 17-18 and prepared the Amended Engineer’s Report,
which was used when the levy and assessments of FY 17-18 Citywide LLMD for FY 17-
18 were initially set at zero. The “Estimate of Cost” included in the Amended Engineer’s
Report Attachment B (pages B-5 and B-6) provides a summary of the District’s FY 19-
20 estimated revenues and expenditures.
A zero assessment requires that the District’s annual estimated expenditures of
$878,507 be paid for through other sources. Measure M funds (countywide ½-cent
sales tax increase approved by voters on November 8, 2016) will be used to cover the
District’s expenditures for FY19-20.
ALTERNATIVES:
In addition to the Staff recommendation, the following alternative is available for the City
Council’s consideration:
1. Direct Staff to modify the Amended Engineer’s Report and bring this item
back to City Council for approval at a future meeting
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RESOLUTION NO. ______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO
PALOS VERDES DECLARING ITS INTENTION TO SET THE LEVY AT
ZERO WITHIN THE CITYWIDE LANDSCAPING AND LIGHTING
MAINTENANCE DISTRICT FOR FISCAL YEAR 2019-2020 PURSUANT
TO THE LANDSCAPING AND LIGHTING ACT OF 1972, PART 2 OF
DIVISION 15 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE
WHEREAS, on August 6, 1992, the City Council of the City of Rancho Palos
Verdes formed an assessment district designated as the “Citywide Landscaping and
Lighting Maintenance District” (the “District”), pursuant to the provisions of the
Landscaping and Lighting Act of 1972, part 2 of Division 15 of the Streets and Highways
Code (commencing with Section 22500) (the “Act”); and
WHEREAS, assessments levied within the District provided revenue for the
purpose of financing the installation, construction, and maintenance of certain public
projects eligible under the Act, including without limitation the operation, maintenance
and servicing of public street and sidewalk landscaping, irrigation systems, and other
appurtenant facilities; and
WHEREAS, the assessments levied by the District have not been increased on
any date on or after July 1, 1997; and
WHEREAS, on August 21, 2018 pursuant to the provisions of the Act, the City
Council directed staff to take action to set at zero the levy and collection of assessments
against the assessable lots and parcels of land in the District for Fiscal Year 2018-19;
and
WHEREAS, in accordance with Section 22624 of the Act, the City Council now
desired to declare its intention to set the levy at zero for assessments within the District
for Fiscal Year 2019-20; and
THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES HEREBY
FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
Section 1. The above recitals are true and correct, and are hereby incorporated
herein by this reference.
Section 2. The City Council hereby (1) finds that the public interest and
convenience requires and (2) declares its intention to set the levy at zero against the
assessable lots and parcels of property within an existing assessment district
designated “Citywide Landscaping and Lighting Maintenance District” (the “District”)
pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of
Division 15 of the Streets and Highways Code (commencing with Section 22500) (the
“Act”) for the fiscal year commencing July 1, 2019, and ending June 30, 2020, which
previously paid for the improvements described below in Section 4 of this Resolution.
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Section 3. The boundaries of the District are coterminous with the boundaries of
the City of Rancho Palos Verdes.
Section 4. The proposed improvements are briefly described as follows: The
operation, maintenance and servicing of public streets and sidewalk landscaping within
the District, including the operation, maintenance and servicing of public lighting
facilities, including safety lighting and traffic signals, landscaping, including trees,
shrubs, grass and other ornamental vegetation, and appurtenant facilities, including
irrigation systems, located along public roadways, streets and rights-of-way within the
boundaries of the City. Maintenance means the furnishing of services and materials for
the ordinary and usual maintenance, operation and servicing of the landscaping, public
lighting facilities, and appurtenant facilities, including repair, removal or replacement of
all or part of any of the landscaping, public lighting facilities, or appurtenant facilities;
providing for the life, growth, health and beauty of the landscaping, including cultivation,
irrigation, trimming, spraying, fertilizing and treating for disease o r injury; the removal of
trimmings, rubbish, debris and other solid waste; and the cleaning, sandblasting, and
painting of walls and other improvements to remove or cover graffiti. Servicing means
the furnishing of water for irrigation of the landscaping a nd the maintenance of any of
the public lighting facilities or appurtenant facilities and the furnishing of electric current
or energy, gas or other illuminating agent for the public lighting facilities, or for the
lighting or operation of landscaping or appurtenant facilities.
Section 5. The City Council may elect to levy an assessment in future years
following a noticed public hearing as required by Section 22625 of the Act at a rate that
shall not exceed the rate which was in effect on July 1, 1997.
Section 6. The City Council hereby declares its intent to apply any remaining
1911 Act Lighting Maintenance District Fund balance to the costs and expenses of
operating, maintaining and servicing traffic signals and safety lighting. The City Council
hereby finds and determines that the foregoing application of the fund balance will be
just and equitable and in the public interest.
Section 8. Public property owned by any public agency and in use in the
performance of a public function that is included wit hin the boundaries of the District
shall not be subject to assessment to be made under these proceedings to pay for any
costs and expenses of the improvements.
PASSED, APPROVED AND ADOPTED this 16th day of July, 2019.
__________________________
Mayor
ATTEST:
___________________________
City Clerk
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State of California )
County of Los Angeles )ss
City of Rancho Palos Verdes )
I, EMILY COLBORN, City Clerk of the City of Rancho Palos Verdes, hereby certify that
the above Resolution No. ___________ was duly and regularly passed and adopted by
the said City Council at a regular meeting thereof held on ____________ ___, 201 9.
________________________________
City Clerk
City of Rancho Palos Verdes
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CITY OF RANCHO PALOS VERDES
ENGINEER’S REPORT
CITYWIDE LANDSCAPE AND LIGHTING
MAINTENANCE DISTRICT
FISCAL YEAR 2019-20
LOS ANGELES COUNTY, CALIFORNIA
June 7, 2019
PREPARED BY
22 Executive Park, Suite 200
Irvine, CA 92614
www.weareharris.com
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Engineer’s Report
Citywide Landscape and Lighting Maintenance District
City of Rancho Palos Verdes
Fiscal Year 2019-20
TABLE OF CONTENTS
Certifications .................................................................................................................. i
Part I - Overview ........................................................................................................... 1
Part II - Plans and Specifications ................................................................................... 3
Part III – Cost Estimate .................................................................................................. 5
Part IV – Method of Apportionment............................................................................. 8
Appendix A – Assessment Roll .................................................................................... 16
Appendix B – Assessment Diagram ............................................................................ 17
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Citywide Landscape and Lighting Maintenance District
City of Rancho Palos Verdes
Fiscal Year 2019-20
i
CERTIFICATIONS
AGENCY: THE CITY OF RANCHO PALOS VERDES
PROJECT: CITYWIDE LANDSCAPE AND LIGHTING MAINTENANCE DISTRICT
TO: THE CITY COUNCIL OF THE
CITY OF RANCHO PALOS VERDES
STATE OF CALIFORNIA
ENGINEER’S REPORT FOR FISCAL YEAR 2019–20
The preparation of this Annual Engineer’s Report (“Report”) is in conformance with the obligation of the
City Council for the Citywide Landscape and Lighting Maintenance District of the City of Rancho Palos
Verdes to levy assessments within the District to provide services upon each lot or parcel of land in the
district in proportion to the estimated benefit to be received by each such lot or parcel of land for Fiscal
Year 2019–20.
Pursuant to the Landscaping and Lighting Act of 1972 (Part 2 Division 15 of the Streets and Highways Code
of the State of California, commencing with Section 22500) (“Act”), and in accordance with the City of
Rancho Palos Verde’s Resolution being adopted by the City Council for:
CITYWIDE LANDSCAPE AND LIGHTING MAINTENANCE DISTRICT
(Hereinafter referred to as the “District”),
I, K. Dennis Klingelhofer, authorized representative of the District, the duly appointed Assessment
Engineer submit the following Report which consists of the following four (4) parts and Appendices:
PART I
Overview: Provides historical information about the District.
PART II
Plans and Specifications: Plans and specifications for the improvements are as set forth on the lists
thereof, attached hereto, and are on file in the Office of the City Engineer and are incorporated herein by
reference.
PART III
Cost Estimate: An assessment of the estimated cost of the improvements on each benefited lot or parcel
of land within the Assessment District.
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Citywide Landscape and Lighting Maintenance District
City of Rancho Palos Verdes
Fiscal Year 2019-20
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PART IV
Method of Apportionment of the Assessments: The method of apportionment of assessments indicates
the proposed assessment of the net amount of the costs and expenses of the maintenance and/or
servicing of the improvements to be assessed upon the several lots and parcels of land within the
Assessment District in proportion to the estimated special benefits to be received by such lots and parcels.
Appendices
Appendix A – Assessment Roll
Appendix B – Assessment Diagram
In conclusion, it is my opinion that the costs and expenses of the District have been assessed to the lots
and parcels within the boundaries of the District in proportion to the estimated benefits to be received
by each lot or parcel from the services provided.
DATED: June 7, 2019
___________________________________________
K. Dennis Klingelhofer, P.E., Assessment Engineer
R.C.E. No. 50255
Engineer of Work
County of Los Angeles
State of California
I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll and Assessment
Diagram thereto attached, was filed with me on the _____ day of ____________, 2019.
Emily Colborn, City Clerk,
City of Rancho Palos Verdes
Los Angeles County, California
By ____________________________
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Citywide Landscape and Lighting Maintenance District
City of Rancho Palos Verdes
Fiscal Year 2019-20
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I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll and Assessment
Diagram thereto attached, was approved and confirmed by the City Council of the City of Rancho Palos
Verdes, California, on the _____ day of ____________, 2019.
Emily Colborn, City Clerk,
City of Rancho Palos Verdes
Los Angeles County, California
By ____________________________
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Engineer’s Report
Citywide Landscape and Lighting Maintenance District
City of Rancho Palos Verdes
Fiscal Year 2019-20
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PART I – OVERVIEW
Annual Proceedings
The annual proceedings for the Citywide Landscaping and Lighting Maintenance District are conducted
under the Landscaping and Lighting Act of 1972, Part II of Division 15, Sections 22500 through 22679, of
the Streets and Highways Code of the State of California (the "Act").
This report, as signed and presented to the Council for approval, has been prepared according to the
methodology and the maximum rates shown herein do not exceed the rates approved by the City Council
in 1992.
The City Council annually reviews the current and projected year's costs for the operation, maintenance,
and servicing of the District facilities and sets the assessment for the ensuing fiscal year, which runs
between July 1 and June 30. In setting the annual assessment, the City Council will consider any proposed
new improvements or any changes in existing improvements, and any fund balances or shortages, and
adjust the assessment accordingly.
Payment of the assessment for each parcel is made in the same manner and at the same time as payments
are made for property taxes for each property.
This report contains the necessary data required to conduct the proceedings and is submitted to the City
Clerk for filing in the office of the City Clerk where it shall remain open for public inspection.
Impact of Proposition 218
On November 5, 1996, the voters of the State of California adopted Proposition 218 creating Article XIII D
of the California State Constitution which created requirements for the creation of new assessments or
to increase existing assessments. Proposition 218 also established exemptions to its provisions for
assessment districts created prior to its passage.
The Citywide Landscaping and Lighting Maintenance District is currently deemed exempt from the
requirements of Proposition 218 so long as the assessments do not exceed the rates in effect on July 1,
1996. Should assessments need to be increased in the future, the District will have to comply with the
requirements of Proposition 218.
History of the District
To ensure a flow of funds for the on-going operation, maintenance and servicing of median landscaping,
street trees, street lighting and traffic signals which provide a special benefit to parcels within the
boundaries of the City of Rancho Palos Verdes, the City Council formed the Citywide Landscaping and
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Citywide Landscape and Lighting Maintenance District
City of Rancho Palos Verdes
Fiscal Year 2019-20
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Lighting Maintenance District on August 6, 1992. The Citywide Landscaping and Lighting Maintenance
District ensures a fair and equitable levying of the necessary costs of operating, servicing and maintaining
of the respective facilities, which in turn directly enhances the value of each and every parcel in the City.
On January 17, 1995, the City Council directed Staff to analyze the feasibility of transferring jurisdiction
for the entire citywide street lighting system from the County to the City. Prior to the incorporation of the
City of Rancho Palos Verdes, the County of Los Angeles established County Lighting Maintenance Districts
to install, operate and maintain street lights in areas throughout the County. Funds for street lighting
came from a combination of ad-valorem tax revenue and, in more recent years, special assessments on
properties benefiting from the street lighting The purpose of the feasibility study was to determine
whether or not it was feasible for the City to take over jurisdiction of the County-owned street lighting
facilities within the boundaries of the City and to review the fiscal impact which the transfer would have
on the City.
On February 7, 1995, the City Council received the feasibility report, authorized the transfer of the street
lighting district from the County of Los Angeles to the City, and authorized the establishment of a special
benefit zone along with the benefit methodology for possible future street lighting assessments in the
Citywide Landscaping and Lighting Maintenance District.
On April 6, 1995, the County of Los Angeles Board of Supervisors adopted a joint resolution that approved
the transfer of the Street Lighting District from the County to the City. The transfer was effective July 1,
1995.
On June 21, 2005, the City Council modified the FY 2005-06 Engineer’s Report to provide for a temporary
“credit” to property owners whereby the Traffic Signal and Safety Lighting operation and maintenance
costs would be paid out of the 1911 Act Lighting Maintenance District fund balance. This temporary
“credit” may be discontinued in any subsequent year at which time these costs will revert to being funded
by the annual assessments and the assessment rates will be set at the previously approved maximum
rates.
On May 16, 2017, the City Council decided not to proceed with the adopting the Report and made a
motion not to levy the assessments in Fiscal Year 2017-18 for the Citywide Landscaping and Lighting
Maintenance District. The Report was modified to reflect the “Zero” levy for Fiscal Year 2017-28 and the
Council extended the “Zero” levy for Fiscal Years 2018-19 and 2019-20. At any point in time the Council
may elect to initiate collecting the assessments without triggering compliance with Proposition 218 as
long as the rate to be applied is the same as or less than the last approved rates.
In 2019, it is anticipated that the City will acquire 1,746 street lights from Southern California Edison (SCE)
and this report documents that transaction and the planned capital expenditure to convert the lights to
LEDs.
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Engineer’s Report
Citywide Landscape and Lighting Maintenance District
City of Rancho Palos Verdes
Fiscal Year 2019-20
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PART II – PLANS AND SPECIFICATIONS
The facilities which have been constructed within the City of Rancho Palos Verdes, and those which may
be subsequently constructed, will be operated, serviced and maintained are generally described as
follows:
The proposed improvements for FY 2019-20 may be generally described as the continued maintenance of
eligible improvements within the District, including the operation, servicing and maintenance of
landscaping, lighting and appurtenant facilities that are located in and along such streets and sidewalks,
including but not limited to, personnel, utilities (such as water and electrical energy), materials,
contracting services, and other items necessary for the satisfactory operation of these facilities described
as follows:
Landscaping and Appurtenant Facilities
Landscaping, planting, shrubbery, trees, irrigation systems, hardscapes, fixtures, sidewalks and
appurtenant facilities, in public street and sidewalk rights-of-way, including parkways, medians
and dedicated easements within the boundary of said Assessment District.
Lighting and Appurtenant Facilities
Poles, fixtures, bulbs, conduits, equipment including guys, anchors, posts and pedestals, metering
devices and appurtenant facilities as required to provide street lighting, traffic signals and safety
lighting in public street and sidewalk rights-of-way and easements within the boundaries of said
Assessment District.
Maintenance means the furnishing of services and materials for the ordinary and usual maintenance,
operation and servicing of the landscaping, public lighting facilities and appurtenant facilities, including
repair, removal or replacement of all or part of any of the landscaping, public lighting facilities or
appurtenant facilities; providing for the life, growth, health and beauty of the landscaping, including
cultivation, irrigation, trimming, spraying, fertilizing and treating for disease or injury; the removal of
trimmings, rubbish, debris and other solid waste; and the cleaning, sandblasting, and painting of walls and
other improvements to remove or cover graffiti.
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Citywide Landscape and Lighting Maintenance District
City of Rancho Palos Verdes
Fiscal Year 2019-20
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Servicing means the furnishing of water for the irrigation of the landscaping and the maintenance of any
of the public lighting facilities or appurtenant facilities and the furnishing of electric current or energy, gas
or other illuminating agent for the public lighting facilities, or for the lighting or operation of the
landscaping or appurtenant facilities.
The plans and specifications for the improvements, showing and describing the general nature, location,
and the extent of the improvements, are on file in the office of the City Clerk and are incorporated herein
by reference.
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Citywide Landscape and Lighting Maintenance District
City of Rancho Palos Verdes
Fiscal Year 2019-20
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PART III – COST ESTIMATE
The estimated cost of the street and sidewalk improvements for Fiscal Year 2019-20, as described in Part
II, are summarized herein and described below. All costs include administration and utilities where
applicable.
1972 Act 1911 Act
Fund 203 Fund 211
BEGINNING FUND BALANCE (7/1)$28,216 7 $2,193,650
ESTIMATED REVENUES
Maximum Assessment Levy $259,989
Actual Assessment Levy $0 7
Ad Valorem Taxes, less delinquencies $618,898
Interest Earnings $118 7 $8,745
City General Fund Contribution to Cover
Expenditures $850,173
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Total Funds Available $878,507 $2,821,293
ESTIMATED EXPENDITURES
Street Landscaping
Major Thoroughfare Medians $280,000 1
Special Benefit Median Maintenance
Rue Beaupre (Zone B)$535 1
Alta Vista (Zone E)$865 1
Ocean Terrace (Zone F)$1,019 1
Abalone Cove Shoreline Park Maintenance $58,000 2
Backflow Inspections $6,000 1
California Coastal Trail Maintenance $12,200 2
Salvation Army Trail Maintenance $7,400 2
Weed Abatement $15,000 2
Street Tree Trimming $382,000 1
Street Lights
Traffic Signals & Safety Lighting $75,000 4
Street Lights $280,000 5
Acquisition of Lights from SCE $651,072 6
CIP - LED Conversion $425,238 6
Ocean Terrace (Zone F)$900 1
$763,919 $1,431,310
Administration and Overhead
Anticipated Delinquencies (3%)$0 3
Administration and Overhead (15%)$114,588 3 $214,697 5
$114,588 $214,697
Total Expenditures $878,507
7 $1,646,007
ENDING FUND BALANCE (6/30)$0 $1,175,286
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Citywide Landscape and Lighting Maintenance District
City of Rancho Palos Verdes
Fiscal Year 2019-20
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Cost Estimate Footnotes:
1. This item is budgeted within Fund 202, Program 3180, in the FY 2019-20 Proposed City Budget.
2. This item is budgeted within Fund 101, Program 3150, in the FY 2019-20 Proposed City Budget.
3. This item is budgeted within Fund 203, Program 0000, in the FY 2019-20 Proposed City Budget.
4. This item is budgeted within Fund 211, Program 0000, in the FY 2019-20 Proposed City Budget.
5. This item is budgeted within Fund 211, Program 0000, in the FY 2019-20 Proposed City Budget.
6. The City is in the process of acquiring 1,746 streetlights using the 1911 Act Fund Balance (currently
$2,193,650), including, but not limited to: (1) Acquisition of all street lights within the City
boundaries from Southern California Edison (SCE) and converting them to energy-efficient LED
bulbs; (2) Expanding the scope of what is covered by the 1911 Act funds to include building and
park exterior lighting, etc.; and/or (3) Reducing or suspending the assessments.
7. Estimated revenue generated by the 1972 Act proposed assessment for FY 2019-20 is Zero and
the total cost for maintenance and servicing of these Citywide facilities ($878,507), with beginning
1972 Act Fund Balance ($28,216), interest earnings in the Fund ($118), will be funded by the City
General Fund ($850,173).
A table showing how the budget is apportioned to each zone is provided on page 13.
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Citywide Landscape and Lighting Maintenance District
City of Rancho Palos Verdes
Fiscal Year 2019-20
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PART IV - METHOD OF APPORTIONMENT
I. General
Part 2 of Division 15 of the Streets and Highways Code, the Landscaping and Lighting Act of 1972, permits
the establishment of assessment districts by cities for the purpose of providing certain public
improvements which include operation, maintenance and servicing of street lights, traffic signals, and
landscaping.
The 1972 Act requires that maintenance assessments be levied according to benefit rather than according
to assessed value. Section 22573 provides that:
The net amount to be assessed upon lands within an assessment district may be
apportioned by any formula or method which fairly distributes the net amount among all
assessable lots or parcels in proportion to the estimated benefits to be received by each
such lot or parcel from the improvements.
The Act permits the designation of zones of benefit within any individual assessment district if "by reason
of variations in the nature, location, and extent of the improvements, the various areas will receive
differing degrees of benefit from the improvements" (Sec. 22574). Thus, the 1972 Act requires the levy
of a true "assessment" rather than a "special tax."
Excepted from the assessment would be the areas of all publicly owned property in use in the
performance of a public function. The City has made a determination to also except public utility rights-
of-way and open space.
II. Parcel Classification
Since the assessment will be levied against properties as shown on the tax rolls, the final charges must be
assigned by Assessor's Parcel Number. If assessments were to be spread just by parcel, not considering
land use or parcel size, this would not be equitable: a single-family parcel would be paying the same as a
50-unit apartment parcel or a large commercial establishment in a similar zone, instead of paying in
proportion to benefit.
The single-family parcel has been selected as the basic unit for calculation of assessments and is defined
as one Equivalent Dwelling Unit (EDU). A methodology has been developed to calculate the EDUs for
other residential land uses and for non-residential parcels, as described below.
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City of Rancho Palos Verdes
Fiscal Year 2019-20
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Single-Family Residential - The single-family residential parcel has been selected as the basic unit for
calculation of the benefit assessments. This basic unit shall be called an Equivalent Dwelling Unit (EDU).
Parcels zoned for single-family residential uses are assessed 1 EDU.
Multiple-Family Residential - Multiple-family residential uses, as well as condominiums, are given a factor
of .75 EDU per dwelling unit. Based on data from representative cities in Southern California, the multiple-
family residential factor of 75 percent is determined by the statistical proportion of relative trip generation
from various types of residential uses, in combination with population density per unit.
Non-Residential and Utilities - In converting improved non-residential properties to EDUs, the factor used
is the City of Rancho Palos Verdes' minimum requirement for single-family residential areas, which is 1
dwelling unit per 8,000 sq. ft, or 5.445 dwelling units per acre. The non-residential parcels (including
utilities) will be assessed 5.445 EDU for the first acre or any portion thereof, and then 25% of 5.445 EDUs
(1.36125) for every additional acre or portion thereof, as the utilization of that portion of non-residential
property greater than one acre more closely resembles that of vacant land. The minimum number of
EDUs per parcel will be 1 EDU.
Vacant Property - Vacant property is described as parcels with no improved structures. These properties
receive benefits based on their land, as this is the basis of their value. Based upon the opinions of
professional appraisers, appraising current market property values for real estate in Southern California,
the land value portion of a property typically ranges from 20 to 30 percent of the property's total value;
in Rancho Palos Verdes, we find that the average is about 50 percent. Additionally, the utilization of
vacant property is significantly less than improved property, and vacant property has a traffic generation
rate of 0. Therefore, we recommend that vacant property be assessed at the rate of 25 percent of
improved property.
Vacant Residential - Residential parcels which do not have structures on the parcels are assessed
25% of a parcel with a single-family dwelling thereon. The parcels will be assessed 0.25 EDU per
parcel.
Vacant Non-Residential - Parcels which are not residential parcels and which do not have structures
on the parcel are assessed based upon the acreage of the parcel. The parcels will be assessed at
the rate of 25% of the developed non-residential properties, or 1.36125 EDU per acre or any portion
thereof, with a minimum of .25 EDU per parcel and up to a maximum of 5 acres (6.80625 EDUs) per
parcel, as that portion of the parcel over 5 acres may be considered as open-space, and no longer
receive any benefit.
Vacant – Moratorium - The vacant parcels in the moratorium area of the City are assessed based
upon the acreage of the parcel. The parcels will be assessed at the reduced rate of 10% of the
developed non-residential properties, or 0.5445 EDU per acre, with a minimum of 0.1 EDU per
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Citywide Landscape and Lighting Maintenance District
City of Rancho Palos Verdes
Fiscal Year 2019-20
9
parcel and a maximum of 5 acres (2.7225 EDUs) per parcel, as that portion of the parcel over 5 acres
may be considered as open-space, and no longer receive any benefit. The reduced rate is deemed
fair and equitable due to the building limitations in this area.
Exempt Property - All publicly owned property and utility rights-of-way are exempt from assessment, as
well as the canyon parcel owned by the Palos Verdes Peninsula Land Conservancy, which is identified by
the 2019-20 Assessor's Parcel Number 7583-022-008.
The land use classification for each parcel has been based on the Los Angeles County Assessor's Roll.
III. Benefit Determination
Property values in a community are increased when public infrastructure such as street lights, traffic
signals, and median and parkway landscaping are in place, improved, operable, safe, clean and
maintained.
The proper functioning of street lighting and traffic signals is imperative for the welfare and safety of the
property and owners and users of the property throughout the City. Proper maintenance and servicing of
the street lighting system benefits properties within the District by providing proper illumination for
ingress and egress and safe traveling at night. Properties within the District also benefit from the proper
functioning of the District's traffic signal system. Proper operation of the street light and traffic signal
systems is imperative to public convenience, orderly traffic flow, enhanced congestion management and
safety. Improved security, fuel conservation, protection of property from crime and vandalism, and
reduction of traffic accidents, are special and direct benefits to all properties within the City; lighting
benefits are directly related to public safety and property protection and therefore increase desirability
and property values. The City costs to administer the improvements are also considered a benefit to all
properties.
The City maintains trees and miscellaneous shrubbery throughout the City. The trees and shrubbery are
located within the public street and sidewalk rights-of-way, including in medians and parkways. These
trees and shrubbery provide an aesthetically pleasing environment, shade, beautification, and according
to some authorities, air purification and sound attenuation. Weed abatement along public ways is
necessary to eliminate fire hazards and unsightly conditions. These positive attributes increase the
desirability of all properties throughout the City.
There are two types of benefits:
Citywide Benefits - Citywide Benefits represent the special benefits received by each and every parcel
within the District from the improvements, and the associated costs of these benefits are spread equally,
based on Equivalent Dwelling Units, to all parcels within the District.
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Engineer’s Report
Citywide Landscape and Lighting Maintenance District
City of Rancho Palos Verdes
Fiscal Year 2019-20
10
Benefits which enhance the desirability and value of all properties within the District include weed
abatement, maintenance of street trees, medians, traffic signals and safety lighting, and street lighting on
the major thoroughfares, which are the main travel ways of the City. The costs of the City to administer
these programs are also considered a Citywide Benefit.
Local Benefits - Local Benefits represent the special benefits conferred by localized improvements to
parcels within the area surrounding the improvements. The associated costs of these benefits are spread
equally over the local area, based on Equivalent Dwelling Units.
Local Benefits include the operation, servicing and maintenance of the Rue Beaupre median, Alta Vista
median (formerly Landscape and Open-space Maintenance District No. 1) and Ocean Terrace median and
street lights (formerly Landscape and Open-space Maintenance District No. 2). These facilities serve only
properties within localized areas.
Local Benefits also include the operation, servicing and maintenance of street lights which were previously
maintained by the County of Los Angeles, which serve the properties adjacent to them.
ZONES OF BENEFIT
A system of zones has been developed to identify the specific benefit each parcel receives. Those zones
are as follows:
Zone A. Citywide Benefits - These parcels receive only Citywide benefits.
Zone B. Rue Beaupre - These parcels receive the local benefits of the Rue Beaupre median, as well
as the Citywide benefits.
Zone C. Clovercliff Park - The maintenance of Clovercliff Park is no longer financed through this
District; therefore, these parcels receive only the Citywide benefits.
Zone D. Vanderlip Park - The maintenance of Vanderlip Park is no longer financed through this
District; therefore, these parcels receive only the Citywide benefits.
Zone E. Alta Vista (Formerly Landscape and Open-space Maintenance District No. 1) - These
parcels receive the local benefits of the Alta Vista median, as well as the Citywide benefits.
Zone F. Ocean Terrace (Formerly Landscape and Open-space Maintenance District No. 2) - These
parcels receive the local benefits of the Ocean Terrace median and street lights, as well
as the Citywide benefits.
Zone G. Miraleste Landscaping and Lighting District - These parcels are included in an existing
landscape and lighting maintenance district under the authority of the Miraleste Park
District that maintains the medians in the major thoroughfares and the weed abatement
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City of Rancho Palos Verdes
Fiscal Year 2019-20
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for the area that would otherwise be maintained by the City. This area, therefore,
benefits only from the street light/traffic signal system maintenance, street tree
maintenance and administration for this District.
Zone L. Street Lighting Overlay Zone - These parcels receive the local benefit from the street
lighting system formerly maintained by the County. This zone overlaps several of the
zones above; therefore the parcels within this zone receive this benefit in addition to the
benefits received from other respective zones.
SUB-ZONES
A system of sub-zones has been developed to classify the different land use types in the City. Those sub-
zones are as follows:
0. Exempt
1. Single-Family Residential Parcels
2. Multi-Family Residential Parcels
3. Non-Residential Parcels
4. Utilities1
5. Vacant Residential Parcels
6. Vacant Non-Residential Parcels
7. Vacant Moratorium Parcels
IV. Inventory of Parcels
The following information was obtained from the Los Angeles County Assessor's Roll, Assessor's Parcel
Maps, and the City of Rancho Palos Verdes Planning Department.
1 Utilities are assessed through the Board of Equalization and those parcels are not included in the
Assessment Roll submitted to the County, but are listed separately.
Land Use
Dwelling
Units Acres EDUs
0.Exempt 320 - - - - - - - - - - - - - - -
1.Single-Family Residential Parcels 13,023 13,023 - - - - -13,023.00
2.Multi-Family Residential Parcels 1,792 3,124 - - - - -2,343.00
3.Non-Residential Parcels 89 - - - - -364.20 756.80
4.Utilities 14 - - - - -21.67 64.79
5.Vacant Residential Parcels 142 - - - - - - - - - -35.50
6.Vacant Non-Residential Parcels 26 - - - - -184.44 113.18
7.Vacant Moratorium Parcels 138 - - - - -621.57 78.94
TOTALS:15,544 16,147 1,191.88 16,415.22
Parcels
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Citywide Landscape and Lighting Maintenance District
City of Rancho Palos Verdes
Fiscal Year 2019-20
12
The distribution of EDUs per Zone is as follows:
The following page provides a table that shows the summary of the annual assessments for each of the
Zones of Benefit.
Zone EDU
A 14,338.66
B 540.25
C 551.00
D 474.25
E 51.25
F 76.25
G 383.56
Total:16,415.22
Citywide improvements (Zones A, B, C, D, E, F and G)
Traffic Signals and Safety Lighting $0
Street Trees $382,000
Adminstrative Costs and Overhead $114,588
Reserves $0
Interest ($118)
Beginning Fund Balance - 7/1 (positive)($28,216)
City Contribution ($468,253)
Subtotal:$0
Citywide improvements except Miraleste (Zones A, B, C, D, E, and F)
Weed Abatement $15,000
Medians $363,600
City Contribution ($378,600)
Subtotal:$0
Rue Beaupre Medians (Zone B)$535
Alta Vista Medians (Zone E)$865
Ocean Terrace Medians and Lights (Zone F)$1,919
City Contribution ($3,319)
Subtotal:$0
Total:$0
BUDGET APPORTIONMENT TO ZONES
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Engineer’s Report
Citywide Landscape and Lighting Maintenance District
City of Rancho Palos Verdes
Fiscal Year 2019-20
13
SUMMARY OF ANNUAL ASSESSMENTS PER EDU
Categories of Benefit
An "X" in the table above indicates the category of benefit that is included in each Zone. The total
assessment per zone is the sum of the assessments for each of the categories.
Zone L - Street Lighting Overlay Zone - Because of the large reserve fund in the 1911 Act Lighting
Maintenance District formerly administered by the County, those properties receiving a direct local
benefit from this street lighting system will not be assessed for FY 2019-20.
Category &
Budget
Zone
A
Zone
B
Zone
C
Zone
D
Zone
E
Zone
F
Zone
G
Asmt Rate
$/EDU
Citywide lighting, street trees,
and administrative costs X X X X X X X $0.00 *
$61,885
Citywide weed abatement
& medians X X X X X X $0.00
$194,785
Rue Beaupre Medians X $0.00
$515
Alta Vista X $0.00
$865
Ocean Terrace X $0.00
$1,919
Total 2019-20 Assessment
with Credit ($/EDU)$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
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Engineer’s Report
Citywide Landscape and Lighting Maintenance District
City of Rancho Palos Verdes
Fiscal Year 2019-20
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APPENDIX A – ASSESSMENT ROLL
A list of names and addresses of the owners of all parcels within this District is shown on the last equalized
Property Tax Roll of the Assessor of the County of Los Angeles, which by reference is hereby made a part
of this report. This list is keyed to the Assessor's Parcel Numbers as shown on the Assessment Roll on file
in the office of the City Clerk of the City of Rancho Palos Verdes.
The total proposed assessment for Fiscal Year 2019-20 is zero and therefore assessments will not be
submitted to the County and this Report will be on file with the City Clerk for reference and record of
the zero assessment.
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City of Rancho Palos Verdes
Fiscal Year 2019-20
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APPENDIX B – ASSESSMENT DIAGRAM
The boundaries of the District are coterminous with the boundaries of the City of Rancho Palos Verdes. A
diagram showing the exterior boundaries of the District, the boundaries of any zones within the District,
and the lines and dimensions of each lot or parcel of land within the District has been submitted to the
office of the City Clerk of the City of Rancho Palos Verdes, and is incorporated herein by reference. The
lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the
maps of the Assessor of the County of Los Angeles. The Assessor's maps and records are incorporated by
reference herein and made part of this report. A reduced copy of the assessment diagram is attached.
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NOTICE OF PUBLIC HEARING
CITYWIDE LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT
FOR FISCAL YEAR 2019-2020
NOTICE IS HEREBY GIVEN that a public hearing will be conducted for the Rancho Palos
Verdes Citywide Landscaping and Lighting Maintenance District on Tuesday, July 16,
2019, at 7:00 PM, at Fred Hesse Community Park, 29301 Hawthorne Boulevard. On
June 18, 2019, the City Council adopted Resolution No. 2019-22 declaring its intention
not to levy and collect assessments within the Citywide Landscaping and Lighting
Maintenance District for Fiscal Year 2019-20 pursuant to the Landscaping and Lighting
Maintenance Act of 1972, Part 2 of Division 15 of the California Streets and Highways
Code, and appointing a time and place for hearing objections thereto. A copy of
Resolution 2019-22 follows below:
RESOLUTION NO. 2019-22
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO
PALOS VERDES DECLARING ITS INTENTION TO SET THE LEVY AT
ZERO WITHIN THE CITYWIDE LANDSCAPING AND LIGHTING
MAINTENANCE DISTRICT FOR FISCAL YEAR 2019-2020 PURSUANT
TO THE LANDSCAPING AND LIGHTING ACT OF 1972, PART 2 OF
DIVISION 15 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE
WHEREAS, on August 6, 1992, the City Council of the City of Rancho Palos
Verdes formed an assessment district designated as the “Citywide Landscaping and
Lighting Maintenance District” (the “District”), pursuant to the provisions of the
Landscaping and Lighting Act of 1972, part 2 of Division 15 of the Streets and Highways
Code (commencing with Section 22500) (the “Act”); and
WHEREAS, assessments levied within the District provided revenue for the
purpose of financing the installation, construction, and maintenance of certain public
projects eligible under the Act, including without limitation the operation, maintenance
and servicing of public street and sidewalk landscaping, irrigation systems, and other
appurtenant facilities; and
WHEREAS, the assessments levied by the District have not been increased on
any date on or after July 1, 1997; and
WHEREAS, on May 16, 2017, pursuant to the provisions of the Act, the City
Council directed staff to take action to set at zero the levy and collection of assessments
against the assessable lots and parcels of land in the District for Fiscal Year 2017-18;
and
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WHEREAS, on August 21, 2018, pursuant to the provisions of the Act, the City
Council directed staff to take action to set at zero the levy and collection of assessments
against the assessable lots and parcels of land in the District for Fiscal Year 2018-19;
and
WHEREAS, in accordance with Section 22624 of the Act, the City Council now
desired to declare its intention to set the levy at zero for assessments within the District
for Fiscal Year 2019-20; and
THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES HEREBY
FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
Section 1. The above recitals are true and correct, and are hereby incorporated
herein by this reference.
Section 2. The City Council hereby (1) finds that the public interest and
convenience requires and (2) declares its intention to set the levy at zero against the
assessable lots and parcels of property within an existing assessment district
designated “Citywide Landscaping and Lighting Maintenance District” (the “District”)
pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of
Division 15 of the Streets and Highways Code (commencing with Section 22500) (the
“Act”) for the fiscal year commencing July 1, 2019, and ending June 30, 2020, which
previously paid for the improvements described below in Section 4 of this Resolution.
Section 3. The boundaries of the District are coterminous with the boundaries of
the City of Rancho Palos Verdes.
Section 4. The proposed improvements are briefly described as follows: The
operation, maintenance and servicing of public streets and sidewalk landscaping within
the District, including the operation, maintenance and servicing of public lighting
facilities, including safety lighting and traffic signals, landscaping, including trees,
shrubs, grass and other ornamental vegetation, and appurtenant facilities, including
irrigation systems, located along public roadways, streets and rights-of-way within the
boundaries of the City. Maintenance means the furnishing of services and materials for
the ordinary and usual maintenance, operation and servicing of the landscaping, public
lighting facilities, and appurtenant facilities, including repair, removal or replacement of
all or part of any of the landscaping, public lighting facilities, or appurtenant facilities;
providing for the life, growth, health and beauty of the landscaping, including cultivation,
irrigation, trimming, spraying, fertilizing and treating for disease or injury; the removal of
trimmings, rubbish, debris and other solid waste; and the cleaning, sandblasting, and
painting of walls and other improvements to remove or cover graffiti. Servicing means
the furnishing of water for irrigation of the landscaping and the maintenance of any of
the public lighting facilities or appurtenant facilities and the furnishing of electric current
or energy, gas or other illuminating agent for the public lighting facilities, or for the
lighting or operation of landscaping or appurtenant facilities.
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Section 5. The City Council may elect to levy an assessment in future years
following a noticed public hearing as required by Section 22625 of the Act at a rate that
shall not exceed the rate which was in effect on July 1, 1997.
Section 6. The City Council hereby declares its intent to apply any remaining
1911 Act Lighting Maintenance District Fund balance to the costs and expenses of
operating, maintaining and servicing traffic signals and safety lighting. The City Coun cil
hereby finds and determines that the foregoing application of the fund balance will be
just and equitable and in the public interest.
Section 8. Public property owned by any public agency and in use in the
performance of a public function that is in cluded within the boundaries of the District
shall not be subject to assessment to be made under these proceedings to pay for any
costs and expenses of the improvements.
PASSED, APPROVED, AND ADOPTED this 18th day of June, 2019.
_____/s/ Jerry Duhovic___
Mayor
ATTEST:
/s/ Teresa Takaoka_
Deputy City Clerk
Dated: June 18, 2019
Please publish in the Palos Verdes Peninsula News on Thursday, June 27, 2019.
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