CC SR 20250415 02 - LLMD FY25-26
CITY COUNCIL MEETING DATE: 04/15/2025
AGENDA REPORT AGENDA HEADING: Regular Business
AGENDA TITLE:
Consideration to review assessment rate options for the Citywide Landscaping and
Lightning Maintenance District (LLMD) for Fiscal Year (FY) 2025-26.
RECOMMENDED COUNCIL ACTION:
(1) Receive and file a report on the Citywide Landscaping and Lighting Maintenance
(LLMD);
(2) Direct Staff to initiate proceedings to set the FY 2025-26 LLMD levy at a rate of
either:
a. $0 per parcel for single family residences;
b. Up to $23.50 per parcel for single family residences, which was the rate at
the time that Proposition 218 came into effect on July 1, 1997; or
c. Greater than $23.50 per parcel for single family residences, which would
require voter approval pursuant to Proposition 218; and
(3) Based on the above, direct Staff to prepare an Engineer’s Report for the LLMD for
FY 2025-26 and return at a future date with the appropriate resolutions
memorializing the Council’s directive for future consideration at a duly noticed
public hearing.
FISCAL IMPACT: There is no fiscal impact to receiving and filing a report on the
Citywide Landscape and Lighting Maintenance District (LLMD).
The fiscal impact of directing Staff to initiate proceedings to set an
LLMD levy and accordingly prepare the annual Engineer’s Report
will result in an expenditure of $9,075 to $13,700, depending upon
whether there is a levy. Even if the levy is set at zero, an Engineer’s
Report is required for the LLMD to continue to exist and allow the
option of a future levy. Sufficient funds for the Engineer’s Report are
available in the FY 2024-25 Operating Budget.
The budget impact of setting the levy at various rates is detailed in
this staff report for FY 2025-26. Depending on City Council direction,
revenues can range from $0 to $350,000, or a higher amount if the
City Council directs staff to conduct the Proposition 218 process for
rates exceeding $23.50 per parcel. VR
Amount Budgeted: $577,000
Additional Appropriation: $0
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Account Number(s): 101-400-3110-5101
[General Fund- PW Administration-
Professional/Technical Services] VR
ORIGINATED BY: Vanessa Hevener, Project Manager
REVIEWED BY: Deanna Fraley, Principal Engineer/City Engineer
Ramzi Awwad, Director of Public Works
APPROVED BY: Ara Mihranian, AICP, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Resolution No. 92-85 Ordering the Formation of a Citywide Landscaping and
Lighting Maintenance District (page A-1)
BACKGROUND:
On August 6, 1992, the City Council formed an assessment district designated as the
Citywide Landscaping and Lighting Maintenance District (LLMD), pursuant to the
Landscaping and Lighting Act of 1972, California Streets and Highways Code Section
22500, et seq. (1972 Act). The purpose of forming the LLMD was, in brief, to provide
funding for the ongoing operation, maintenance, and servicing of landscaping, public
lighting and signals, park and recreational improvements, and appurtenant facilities
(Attachment A). The LLMD is funded through assessments on properties Citywide. In
accordance with 1972 Act requirements, each parcel is assessed an amount based on
the relative benefit the parcel receives from the LLMD’s operations rather than the
parcel’s assessed value.
The LLMD annual levy ranged from $49.99 per parcel for single -family residences
(approximately 94% of properties Citywide) at inception on August 6, 1992, to $23.50 for
FY 1997-98. Beginning in FY 1998-99, the annual levy was set to $20.38 per parcel for
single-family residences, resulting in an annual revenue of approximately $333,000.
On June 21, 2005, the City Council decided to fund streetlight and traffic signal operation
and maintenance costs using a different fund, the 1911 Act Lighting and Maintenance
District Fund (1911 Act Fund), rather than LLMD funds. The 1911 Act Fund is funded
from property assessments collected by the County and transferred to the City and is
restricted for use on streetlights and traffic signals. Staff presumes the City Council made
this decision because of an adequate 1911 Act fund balance for the operation and
maintenance of streetlights and traffic signals and the desire to reduce the overall tax
burden on residents. Accordingly, the City Council reduced the LLMD assessment rate
and annual levy to $15.92 per parcel for single-family residences.
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The 1911 Act Fund continues to collect revenues and pay for costs associated with the
installation, operation, and maintenance of streetlights and traffic signals. This annual
revenue has been, and is projected to continue to be, sufficient to cover the typical annual
expenses for installing, operating, and maintaining the City’s streetlights and traffic
signals.
On May 16, 2017, the City Council set the LLMD rate to zero, which means property
owners were not assessed. The rate has been set to zero in each subsequent year since,
which means that alternate funds are being used to pay costs that could otherwise be
funded through the LLMD. Moreover, by setting the assessment at zero rather than
sunsetting the LLMD, it enables the Council to reset an assessment up to rate at which
time Proposition 218 (Prop 218) went into effect as discussed later in this report.
To ensure a fair and equitable sharing of LLMD costs, the City conducts an annual review
of an engineer’s report wherein the current year’s expenses are reviewed, the ensuing
year’s expenses are budgeted, and the assessment for the ensuing fiscal year is set. In
setting the annual assessment, the City Council is asked to consider any proposed new
improvements or any changes in existing improvements, any fund balances or shortages,
and adjust the assessment accordingly. Payment of the assessment for each par cel is
made in the same manner and at the same time as payments are made for property taxes
for each property.
An Engineer’s Report is necessary to establish assessments based on relative benefit.
The Engineer’s Report classifies areas within the City into various zones which, by reason
of variations in the nature, location, and extent of the proposed activities and
improvements, receive differing degrees of benefit from the operation of the LLMD.
On June 6, 2023, during the City Council’s annual consideration of the LLMD, the City
Council directed Staff to bring LLMD assessment options for the City Council’s
consideration during the time that the budget is being developed so that the City Council’s
assessment direction can be incorporated into budget calculations prior to finalizing the
budget.
Tonight, pursuant to Council’s 2023 directive, Staff seeks direction from the City Council
with respect to setting the preferred option for the assessment rate of the LLMD for FY
2025-26.
DISCUSSION:
The 1972 Act allows the City to levy an assessment for the installation, construction,
maintenance, servicing, and incidental costs of:
• Landscaping
• Ornamental Structures
• Public Lighting and Traffic Signals
• Park or Recreational Improvements
• Acquisition of Land/Existing Improvements for Park, Recreational, or Open Space
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• Acquisition or Construction of Community Center or Similar Facility
Revenues may also be used for related items such as appurtenances; provision of
electricity, gas, or water; and curbs, gutters, walls, sidewalks, paving, irrigation, drainage,
or electrical facilities necessary or convenient for the maintenance of the aforementioned
items.
Table 1 below shows the proposed FY 2025-26 budget for landscaping and
park/recreational improvements, which could be funded through the LLMD per Section
22500 of the California Streets and Highways Code Section. The table shows that eligible
items are currently being funded through a combination of the General Fund, Gas Tax
(allocation of state tax on fuel), Measure M (county-wide sales tax allocation to fund
transportation improvements), and the Waste Reduction Fund (waste hauler fees).
Table 1- Proposed FY 2025-26 Budget Items Eligible for LLMD Funding
Category Proposed FY 25-26 Budget
General Fund
Trails & Open Space Maintenance $429,000
Parks Maintenance $1,174,000
Tree Trimming – View Restoration $175,000
Graffiti Abatement $72,000
Street Landscape Maintenance – Water & Irrigation $304,500
General Fund Sub Total $2,154,500
Gas Tax
Street Landscape Maintenance $837,000
Gas Tax Sub Total $837,000
Measure M
Street Landscape Maintenance $636,000
Measure M Sub Total $636,000
Waste Reduction Fund
Landscaping Materials $111,500
Sub Total $111,500
Total $3,739,000
The proposed FY 2025-26 budget is an increase of approximately 8% compared to the
FY 2024-25 budget. The increase is primarily due to higher costs of labor and materials
evident in the lowest bid for landscaping services.
The City Council has several options it may consider with respect to the annual LLMD
levy for Fiscal Year 2025-26.
a. Set a rate of zero, as has been the case since 2017, meaning that property owners
will not be assessed. With this option, the funding sources outlined in the table
above will be used to pay the costs that could otherwise be funded through the
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LLMD. Setting the levy at zero allows the City Council to continue to consider a
levy on an annual basis. This option generates no additional funding.
b. Set a Rate up to $23.50, which was the rate on the effective date of Proposition
218 (July 1, 1997). This action requires a noticed public hearing but would be
exempt from the requirements of Proposition 218 because the assessment
predates, and would not have been increased since, the effective date of
Proposition 218. This option generates approximately $325,000 to $350,000 in
additional funding.
c. Set a Rate Greater than $23.50, which requires voter approval in compliance with
the requirements of Proposition 218 because the assessment would be greater
than the rate on the effective date of Proposition 218. The levy for this option could
be set to an amount high enough to generate all expenses eligible for funding
through the LLMD, which is up to $3,752,000 in FY 2025-26.
Should the City Council decide to levy an assessment at a rate greater than zero, Staff
proposes using the revenue generated to offset street landscaping and tree maintenance
currently funded through the Gas Tax, as this is in keeping with the City’s past practice of
using LLMD funds to pay for street landscaping and tree maintenance. This also allows
more Gas Tax funds to be available for street pavement rehabilitation projects through
the Capital Improvement Program (CIP), which are currently not expected to be fully
funded with available balances and annual revenues for FY 2025-26. Alternatively, the
additional revenue could be used to offset the General Fund’s estimated annual costs of
$2.16 million or for future maintenance needs that the General Fund is unable to support
due to limited funding.
Following direction from the City Council, the Director of Public Works will order the
preparation of an Engineer’s Report based on the rate directed by the City Council. Upon
completion of the Engineer’s Report, the City Council will be asked to consider a
Resolution of Intent to levy annual assessments (at a rate of zero or greater) for the
Citywide LLMD, with a subsequent public hearing; which will tentatively be scheduled for
June 2025. Staff recommends the preparation of an Engineer’s Report and to conduct a
public hearing, even if the City Council direction is to set the rate to zero, because this
would preserve the ability to set the assessment in the future, should the City Council
desire to do so.
It should be noted that after receiving the Engineer's Report, the Council retains the ability
to reconsider its preferred option for eventual adoption at a duly noticed public hearing.
ADDITIONAL INFORMATION:
On April 3, 2025, as part of the FY 2025-26 budget process, the Finance Department
presented the draft budget assumptions to the Finance Advisory Committee (FAC). In line
with the City Council direction from the March 17, 2025 City Council Goals Workshop,
Staff presented potential financial sustainability strategies, including a review of existing
revenue sources, suspended revenues, financial assistance programs, and cost-
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containment measures. At the conclusion of the meeting, the FAC recommended, among
other things, that the City Council consider reinstating the levy at a rate above $0, not to
exceed $23.50—the amount set in 1996.
There was consensus that the potential revenue of over $300,000 would reduce the
subsidy from General Fund, considering the City’s recent allocation of $36.3 million in the
budget for emergency response and landslide mitigation efforts.
CONCLUSION:
Staff recommends the City Council provide direction to Staff on setting the assessment
rate of the LLMD for FY 2025-26 and direct Staff to prepare the Engineer’s Report
accordingly.
ALTERNATIVES:
In addition to the Staff recommendations, the following alternative actions are available
for the City Council’s consideration:
1. Direct the Director of Public Works not to prepare the Engineer’s Report for the
Citywide LLMD for FY 2025-26.
2. Take other action, as deemed appropriate.
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RESOLUTION NO. 92 -85
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF RANCHO PALOS VERDES ORDERING THE FORMATION
OF A CITYWIDE LANDSCAPING AND LIGHTING
MAINTENANCE DISTRICT AND THE CONSOLIDATION OF
SUCH DISTRICT WITH LANDSCAPE AND OPEN SPACE
MAINTENANCE DISTRICT NO, 1 AND LANDSCAPE AND
OPEN SPACE MAINTENANCE DISTRICT NO. 2 AND
CONFIRMING A DIAGRAM AND ASSESSMENT FOR THE
1992 -93 FISCAL YEAR IN CONNECTION WITH SUCH
CITYWIDE LANDSCAPING AND LIGHTING MAINTENANCE
DISTRICT PURSUANT TO THE PROVISIONS OF PART 2
OF DIVISION 15 OF THE CALIFORNIA STREETS AND
HIGHWAYS CODE
THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES
HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
Section 1. The City Council has previously formed
Landscape and Open Space Maintenance District No. 1 and Landscape
and Open Space Maintenance District No. 2.pursuant to the
provisions of the Landscaping and Lighting Act of 1972, being
Part 2 of Division 15 of the California Streets and Highways Code
the "Act ") . Landscape and Open Space Maintenance District No. 1
is comprised of the area within Tract Map No. 32673. Landscape
and Open Space Maintenance District No. 2 is comprised of the
area within Tract Map No. 31617.
Section 2.. Pursuant to the provisions of the Act, the
City Council of the City of Rancho Palos Verdes, by its
Resolution Nos. 92 -72 and 92 -74, initiated proceedings for and
declared its intention to order the formation of a Citywide
landscaping and lighting maintenance district designated as the
Citywide Landscaping and Lighting Maintenance District" (the
District ") , to consolidate such District with Landscape and Open
Space Maintenance District No. 1 and Landscape and Open Space
Maintenance District No. 2, and to levy an assessment against
lots and parcels of property within such District for the f fiscal
year commencing July 1, 1992 and ending June 30, 1993. The City
Council, by its Resolution No. 92 - 72 ordered the Engineer to
prepare and file a written report in accordance with Article 4 of
Chapter 1 of the.Act and, by its Resolution No. 92 -73, approved
such Engineer's Report.
Section 3. Subsequent to the approval of the
Engineer's Report by the City Council, the Engineer has modified
the Engineer's Report. Such modifications have not changed the
total assessment for the estimated costs of the improvements or
the amounts of the individual assessments against lots and
parcels of land within the District, as shown on the assessment
roll on file in the office of the City Clerk.
A-1
Section 4. Following notice duly given b publication
and mail, the City ouncil has
Y p • Y
its
held a full and fair publichearingregardingitsResolutionNo. 92 -74 the Engineer'sReport, as modified, the formation of the District the
consolidation of the District with Landscape and Open SpacepppeMaintenanceDistrictNo, 1 and Landscape and Open Space
Maintenance District No. 2 and the levy and collectionon of the .
proposed assessment within the District for fiscal year 1992 -93
expenses
to pay for the costs and ex
Y
p s of the improvements describedinSection8below, pursuant to the terms and r ' p ovisions of theAct. All interested persons were afforded the opportunityhearandbeheardregarding .
pp Y to
g g protests and objections to theformationofthe-District, the consolidation of the ' District withLandscapeandOpenSpaceMaintenanceDistrictNo. 1 and LandscapeandOpenSpaceMaintenanceDistrictNo. 2 and the levytheproposed
andcollectionofppdassessmentagainstlotsorparcels of
property within the District. The City Council considered alloralandwrittenstatements ' , protests and communications made orfiledbyinterestedpersons. Written protests have beenn filedandnotwithdrawnrepresentingntingpropertyownersowninglessthanfiftypercentoftheareaofassessablelandwithintheproposedDistrict. All oral and written protests and objections
the C' ]
tionsareherebyoverruledbyCityCouncil.
Section 5. Based upon its review of the Engineer'sReport, as modified, a co of which
g
copy ch has been presented to theCityCouncilandwhichhasbeenfiledwiththeCitylerkotherreportsandinformationY , and
the City Council hereby finds anddeterminesthat (i) the district of land within t • be benefitted by het
he District will
improvements described in Section 8 below, ii) the District includes all of the lands so ben ' of fitted, andiii) the net amount to be assessed upon the lands within theDistrictforthe1992 -93 fiscal ear in accordanceante with theEngineer's Report, described above is apportioned
and method which fairly
p ned by a formula
rly distributes the net amount among allassessablelotsorparcelsinproportiontotheestimatedbenefitstobereceivedbyeachsuchlotorparcelfromtheimprovements.
Section 6, The City Council hereby orders theformationoftheCitywideLandscapingandLightingMaintenanceDistrict,
Section 7, The City Council hereby orders theconsolidationofLandscapeandOpenSpaceMaintenance '
a
p ance DistrictNo. 1 and Landscape and Open Space Maintenance District No. 2withtheCitywideLandscapingandLightingMaintenance ' The resulting single
g. • Hance District®
g g assessment district is designated "Cit wideLandscapingandsightingMaintenanceDistrict"
Y
rict and Landscape andOpenSpaceMaintenanceDistrictNo. 1 and Landscape and OpenSpaceMaintenanceDistrictNo. 2 no longer exist as separatedistricts.
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Resol. No. 92 -85A-2
Section 8. The City Council hereby orders the proposed
improvements to be made as described in the Engineer's Report, as
modified, which improvements are briefly described as follows:
the operation, maintenance and servicing of landscaping,
including trees, shrubs, grass and other ornamental vegetation,
and appurtenant facilities, including irrigation systems and
drainage devices; the operation, maintenance and servicing of,
public lighting facilities, including traffic signals, and
appurtenant facilities; and the operation, maintenance and
servicing of park and recreational improvements, including
lights, athletic fields, playgrounds, playground equipment,
public restrooms, park furniture, site amenities and appurtenant
facilities.
Section 9, The Engineer's Report, as modified, and now
on file in the office of the City Clerk, is hereby approved. The
City Council hereby confirms the diagram and assessment set forth
in such Engineer's Report.
Section 10. The assessment is in compliance with the
provisions of the Act.
Section 11. The assessment is levied without regard to
property valuation.
Section 12. Public property owned by any public agency
and in use in the performance of a public function which is
included within the boundaries of the District shall not be
subject to assessment to be made under these proceedings to pay
for any of the costs and expenses of the improvements.
Section 13. The assessment is levied for the purpose
of paying the costs and expenses of the improvements described in
Section 8 above for fiscal year 1992 -93.
Section 14. The improvements described in Section 8
above shall be performed pursuant to law and the County Auditor
of Los Angeles County shall enter on the County Assessment Roll
opposite each lot or parcel of land the amount of the assessment
and such assessments shall then be collected at the same time and
in the same manner as the County taxes are collected. After
collection. by the County, the net amount of the assessments shall
be paid to the City Treasurer. N
Section 15, The City Treasurer shall deposit all
moneys representing assessments collected by the County to the
credit of a special fund known as Improvement Fund, Citywide
Landscaping and Lighting Maintenance District.
Section 16,
constitutes the levy of
parcels of land in the
July 1, 1992 and ending
The adoption of this Resolution
an assessment against the lots and
District for the fiscal year commencing
June 30, 19934D
3 Resol. No. 92 -85
A-3
Section 17. The City Clerk is hereby authorized and
directed to file the diagram and assessment, or a certified copy
of the diagram and assessment, with the County Auditor, together
with a certified copy of this Resolution upon its adoption.
Section 18. A certified copy of the assessment and
diagram shall be filed in the Department of Public Works, with a
duplicate copy on file in the office of the City Clerk and open
for public inspection.
PASSED, APPROVED and ADOPTED this 4th day of August,
1992.
ATTEST:
City Clerk
State of California
County of Los Angeles ) ss
City of Rancho Palos Verdes
I, JO PURCELL, City Clerk of the City of Rancho Palos
Verdes, hereby certify that the above Resolution No. 92 -85
was duly and regularly passed and adopted by the said City
Council at a regular meeting thereof held on August 4, 1992.0
City€ Clerk, City of
Rancho Pal
4 Resol. No. 92 -85
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