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HomeMy WebLinkAboutItem 2.1 Study Session Landscaping Lighting Assessment Districts 1983-1_1999-1 Potential Proposition 218 Proceedings STAFF REPORT CITY COUNCIL Page 1 of 3 Agenda Item 2.1 DATE: January 20, 2026 TO: Honorable Mayor and City Councilmembers FROM: Colleen Tribby, City Manager SUBJECT: Study Session: Landscaping and Lighting Assessment Districts 1983-1 and 1999-1 and Potential Proposition 218 Proceedings Prepared by: Brad Olson, Management Analyst II EXECUTIVE SUMMARY: The City Council will receive a presentation from Francisco & Associates and Staff on the City’s two Landscaping and Lighting Assessment Districts (LLADs) specific to public street lighting: Districts 1983-1 and 1999-1. The presentation will specifically address potential solutions to an ongoing operating deficit in LLAD 1983-1, which is currently drawing from reserves that are anticipated to run out in Fiscal Year 2027-28. Francisco & Associates has conducted a benefit study in both LLADs and will present options for the City Council to consider that will address the funding shortfall and ensure compliance with Proposition 218, which imposes strict limitations and voter consent requirements on property-related fees and assessments. STAFF RECOMMENDATION: Receive the presentation and provide direction. FINANCIAL IMPACT: All costs associated with this project are funded through the operating budgets of the applicable Landscape and Lighting Assessment Districts. The agreement with Francisco & Associates, Inc. is for a not-to-exceed amount of $175,000. DESCRIPTION: Background The Landscape and Lighting Act of 1972 provides the legal framework for cities to create special assessment districts to fund public improvements like landscaping and street lighting. These districts allow local governments to levy special assessments to p ay for the installation, operation, and maintenance of such improvements. 4 Page 2 of 3 In 1996, California voters approved the “Right to Vote on Taxes Act” (Proposition 218). Among other things, Proposition 218 created new procedural and substantive requirements surrounding agencies’ ability to impose new or increased taxes, as well as property-related fees and assessments. Proposition 218 requires approval by a majority of property owners participating in a mail-in ballot process in order to enact new or increased assessments. Per Proposition 218, to increase an assessment or establish a new assessment, a local agency must prepare an Engineer’s Report describing the improvements and services to be funded through the proposed assessment. Prior to completing the Engineer’s Report, a comprehensive benefit analysis must be conducted, which separates the general benefits the improvements and services provide to the public at large from the special benefits conferred to properties that will be subject to the assessment. The general benefits to the public at large cannot be funded by the proposed assessment and must be paid for using an alternative funding source. Public Street Lighting in Dublin The City of Dublin has two Landscaping and Lighting Assessment Districts (LLADs) specific to public street lighting: Districts 1983-1 and 1999-1. Attachment 1 shows the boundaries of these two districts. LLAD 1983-1 was created to replace the Alameda County Lighting Service Area shortly after the City of Dublin incorporated in 1983. It funds public street lighting in most of the City and encompasses approximately 12,000 parcels. Assessments levied in the district were based upon estimated annual operating, ma intenance, and replacement costs, with no provision to increase the levy beyond a cap which was reached in 2007. LLAD 1999-1 encompasses approximately 7,000 parcels and funds public street lighting in portions of the City including Dublin Ranch, Fallon Village, Tassajara Hills, and the Clifton Park development in western Dublin. LLAD 1999-1 has an annual escalator that has allowed it to keep pace with costs. Operating, maintenance, and replacement costs for public street lighting increase over time due to inflation and other economic factors. Recently, the rising cost of electricity has significantly contributed to the funding needs of the City’s two public street lighting districts. For example, electricity costs in LLAD 1983-1 increased from about $190,000 in Fiscal Year 2022- 23 to over $300,000 in Fiscal Year 2024 -25. Similarly, electricity costs in LLAD 1999-1 increased from about $180,000 in Fiscal Year 2022-23 to over $275,000 in Fiscal Year 2024- 25. Electricity costs are expected to continue to increase in future years, though at a lower percentage than in the last few fiscal years. From 2007 to today, the annual assessment levied in LLAD 1983-1 has been $19.34 per residential unit and $106.37 per acre for commercial uses. For Fiscal Year 2025-26, LLAD 1983-1 estimated revenues are $327,670 and expenses are $439,545, resulting in the use of $111,875 in reserves. Since there is no authorized annual escalator for assessments, LLAD 1983-1 will continue drawing from the reserve fund balance in future years to cover costs, including the costs associated with Proposition 218 Engineering Services. LLAD 1983-1 is 5 Page 3 of 3 projected to run out of reserves in Fiscal Year 2027-28. Absent any voter-approved increase to the assessments, the General Fund will need to cover the increasing annual difference between revenue and expenses (estimated at approximately $150,000 in year one). Study Session On May 20, 2025, the City Council directed Staff to study the feasibility of increasing the special assessment amounts for LLAD 1983-1, and on November 4, 2025, the City Council approved an agreement with Francisco and Associated for this work. Since then, Francisco and Associates has assisted Staff with evaluating viable and cost-effective options to address the LLAD funding shortfall, including increasing the assessment and potentially consolidating LLADs 1983-1 and 1999-1. As part of this effort, Francisco and Associates has performed a benefit analysis as required by Proposition 218, which may serve as the basis for proposed assessments. At this Study Session, the City Council will receive a presentation regarding the findings of the benefit analysis and provide direction. STRATEGIC PLAN INITIATIVE: None. NOTICING REQUIREMENTS/PUBLIC OUTREACH: The City Council Special Meeting Agenda was posted. ATTACHMENTS: 1) Street Lighting Assessment Diagrams for 1983-1 and 1999-1 6 City of DublinStreet Lighting Maintenance District No. 1983-1Assessment Diagram ¯3,250 0 3,250 6,5001,625 Feet Legend ! ! ! !LLAD 1983-1 Boundary City Limit Parcel Lines Parcels within LLAD 1983-1 Dublin Blvd Sa n R a m o n R d Ta s s a j a r a R d Attachment 1 7 City of DublinStreet Lighting District No. 1999-1Assessment Diagram ¯ 0 2,000 4,0001,000 Feet 0 200 400 600100Feet Dublin Blvd Central Pkwy Fallon Rd Fallon Rd Gleason Dr Poitano Pkwy Legend ! !! !!LLAD 1999-1 Boundary City Limit Parcel Lines Parcels within LLAD 1999-1 Mountain Galway Ct Inspiration Cir Clifden Ct RisePl Tract 7067 Tract 8102 8