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HomeMy WebLinkAboutItem 8.3 Resolution Initiating Formation of Street Lighting Assessment District 2026-1 Directing Preparation Required Engineer's report STAFF REPORT CITY COUNCIL Page 1 of 6 Agenda Item 8.3 DATE: March 3, 2026 TO: Honorable Mayor and City Councilmembers FROM: Colleen Tribby, City Manager SUBJECT: Resolution Initiating Formation of Street Lighting Assessment District 2026-1 and Directing the Preparation of the Required Engineer’s Report, and Resolution Directing Preparation of Annual Engineer’s Reports for Landscaping and Lighting Districts 1983-2, 1986-1, and 1997-1 Prepared by: Brad Olson, Management Analyst II EXECUTIVE SUMMARY: The City of Dublin currently has two Street Lighting Maintenance District (SLMDs) that fund the operation and maintenance of streetlights. The City also has three Landscaping and Lighting Districts (LLDs) that fund maintenance of landscape improvements. SLMDs 1983-1 and 1999- 1 are proposed to be consolidated and replaced with a new Street Lighting Assessment District (SLAD) 2026-1. The formation of this new district, which will address the growing streetlighting operations and maintenance funding shortfall, requires notice and balloting proceedings pursuant to Article XIIID of the California Constitution and the Proposition 218 Right to Vote on Taxes Act. In accordance with Proposition 218, the City Council will consider adopting a resolution initiating the formation of SLAD 2026-1 and directing the preparation of the related Engineer’s Report. The City Council will also consider adopting a resolution directing the preparation of Engineer’s Reports for each of the City’s LLDs to levy and collect assessments on the property tax roll for Fiscal Year 2026-27. STAFF RECOMMENDATION: Adopt the Resolution Initiating Formation of Dublin Street Lighting Assessment District No. 2026-1 and Directing the Preparation of the Required Engineer’s Report Pursuant to the Landscaping and Lighting Act of 1972 and Section 4 of Article XIIID of the California Constitution; and adopt the Resolution Directing the Preparation of the Annual Engineer’s Reports for Fiscal Year 2026-27 for Landscaping and Lighting Districts 1983-2, 1986-1, and 1997-1. 115 Page 2 of 6 FINANCIAL IMPACT: The cost of preparing the Engineer’s Reports and the Proposition 218 services is included in the Fiscal Year 2026-27 budget and is paid by each respective District. DESCRIPTION: This Staff Report proposes two actions for City Council consideration. The first is to authorize Staff to initiate formation proceedings of a new Street Lighting Assessment District (SLAD) No. 2026-1, which consolidates two existing Landscaping and Lighting Assessment Districts (LLDs) into one, and direct Staff to prepare the required Engineer’s Report for the new SLAD. The second is to direct Staff to prepare the Engineer’s Reports for the other three existing LLDs. Engineer’s Reports are prepared on an annual basis in advance of the new fiscal year and budget adoption. The City Council will review the final reports and consider ordering the levy of assessments during a public hearing. New District Formation Proceedings Background On May 20, 2025, the City Council approved the budgets of Dublin’s five LLDs for Fiscal Year 2025-26. During the meeting, Staff discussed the structural deficit existing in District 1983-1, the only one in the City that does not have a built-in annual escalator in its assessment. The City Council then directed Staff to initiate the process to increase the assessment for SLMD 1983-1. On November 4, 2025, the City Council approved an agreement with Francisco and Associates to assist Staff with evaluating options to address the funding shortfall in SLMD 1983-1, which included studying whether to consolidate SLMDs 1983-1 and 1999-1, the City’s only assessment districts specific to street lighting maintenance. On January 20, 2026, the City Council held a Study Session, received a report on the street lighting districts and directed Staff to proceed with the process under Proposition 218 to establish a new single district that replaces SLMDs 1983-1 and 1999-1, to fund the operation and maintenance of streetlights throughout the entire City, excluding Ca mp Parks and properties located within The Boulevard. This will allow for a single, updated, and more consistent assessment methodology applied across both areas. It also strengthens the City’s compliance with Proposition 218 requirements related to the proper accounting of general versus special benefit. The Staff Report from the January Study Session is included as Attachment 5. The following is a summary of the benefit analysis that was performed by Francisco & Associates and presented at the meeting. Benefit Analysis for SLAD No. 2026-1 As required by Proposition 218, a benefit analysis distinguish es general benefits to the public from special benefits to parcels. According to Francisco & Associates’ analysis, the general benefit for streetlighting along Dublin’s major roadways is attributed to pass-through traffic that 116 Page 3 of 6 originates outside the City limits and travels along major roadways to a destination outside the City, as identified through likely routes analyzed using mapping tools. Based on the ro ute analysis, this general benefit is estimated at 12% of the major roadway streetlight budget. For local roadways, the general benefit is attributed to incidental traffic that does not directly benefit assessable parcels and is conservatively estimated at 2% of the local roadway budget. The total streetlighting budget attributable to general benefit to the public at large is estimated to be $86,860 annually in Fiscal Year 2026–27. This amount cannot be funded through the assessments for SLAD 2026-1 and must instead be funded by alternative funding sources. Streetlighting on major roadways provides a citywide special benefit by enhancing traffic circulation, accessibility, and overall community desirability. Non -decorative street lighting on local roadways improves neighborhood ingress and egress, pedestrian and vehicular safety, and localized accessibility. Decorative streetlighting further enhances curb appeal, neighborhood identity, and overall desirability, thereby providing additional special benefits to parcels located within those neighborhoods. Proposed Assessments for SLAD 2026-1 Reflecting these differing levels of special benefit described above, the proposed SLAD 2026-1 includes three assessment categories: properties adjacent to public streets with non - decorative streetlighting; properties adjacent to public streets with decorative streetlighting; and properties adjacent to private streets served by private streetlighting. The projected annual budget estimate for SLAD 2026-1 is $1,257,000 and includes: operation and maintenance costs of existing streetlights; anticipated costs for streetlights expected to be accepted by the City for operations and maintenance in the near future; and an annual reserve to fund future capital improvement and replacement of the City’s public street lighting system. Attachment 6 provides the estimated cost and proposed maximum assessments for SLAD 2026-1 along with the City’s contribution for general public benefit. Tables 1, 2, and 3 below compare the proposed maximum, current maximum, and actual assessments for each category. Table 1. Properties Adjacent to Public Streets with Non-Decorative Street Lighting Maximum Assessment Breakdown Amount Major Roadway Assessment Component $17.00 Non-Decorative Local Roadway Assessment Component $18.00 Total Proposed FY 2026-27 Maximum Assessment $35.00 Maximum Assessment under District 1983-1* $19.34 Total Change to Maximum Assessment +$15.66 *FY 2025-26 Actual Levied Assessment is $19.34 117 Page 4 of 6 Table 2. Properties Adjacent to Public Streets with Decorative Street Lighting Maximum Assessment Breakdown Amount Major Roadway Assessment Component $17.00 Decorative Local Roadway Assessment Component $45.00 Total Proposed FY 2026-27 Maximum Assessment $62.00 Current Maximum Assessment under SLMD No. 1999-1* $82.68 Total Change to Maximum Assessment -$20.68 *FY 2025-26 Actual Levied Assessment is $47.80 Table 3. Properties Adjacent to Public Streets with Private Street Lighting Maximum Assessment Breakdown Amount Major Roadway Assessment Component $17.00 Local Roadway Assessment Component $0.00 Total Proposed FY 2026-27 Maximum Assessment $17.00 Current Maximum Assessment* Varies Total Change to Maximum Assessment Varies *Varies depending if currently within District 1983-1 or District 1999-1 The maximum assessment rates for the Local Roadways Assessment Component shown in the tables above differ slightly from the preliminary information presented to the City Council at the Study Session on January 20, 2026. The adjustments are due to additional streetlights identified during a PG&E field audit that are an ticipated to be turned over to the City for operations and maintenance, as well as updates to the parcel database based on best available data. To keep up with inflationary increases, the maximum assessment rates for SLAD 2026-1 are proposed to increase by 3% per year, or by the 12-month percentage change in the Consumer Price Index (CPI), as published by the U.S. Bureau of Labor Statistics, whichever is greater. The CPI is proposed because the Bureau of Labor Statistics calculates local indexes that reflect cost increases in a specific area. The CPI proposed for the escalator would be for All Urban Consumer/All Items/San Francisco-Oakland-San Jose. The City Council retains discretion to annually levy assessments at an amount below the maximum in any given fiscal year as part of the annual budget and levy approval process. Engineer’s Report for SLAD 2026-1 As previously discussed, the Landscape and Lighting Act of 1972 requires the City Council to direct the preparation of an Engineer’s Report to establish the annual maintenance assessments for the newly formed SLAD. The benefit analysis will be integrated into the preliminary Engineer’s Report. This report will be prepared for consideration and approval by the City Council in April 2026. Following approval of the Engineer’s Report, a public hearing will be scheduled for June 2026, and notices and ballots will be mailed to affected property owners. If a majority of the ballots returned, weighted according to the proposed asse ssment amounts, do not oppose the formation of SLAD 2026-1, the City Council may approve the levy 118 Page 5 of 6 of assessments beginning with the Fiscal Year 2026–27 property tax roll. Public Outreach for SLAD 2026-1 Public outreach efforts will begin following adoption of the Resolution of Initiation by the City Council this evening and will continue through the close of the Proposition 218 ballot period. The outreach program will include a dedicated informational webpage, frequently asked questions, social media outreach, tabling at community events, a virtual town hall meeting, and professional videography. Together, these efforts will provide clear, accessible information and multiple opportunities for property owners to learn about the proposal and participate in the process. Direction to Prepare Engineer’s Reports for the LLDs The City Council is also requested to direct the preparation of Engineer’s Reports to establish annual maintenance assessments in the City’s existing three LLDs further described below. Once prepared, the preliminary reports will be presented to the City Council for consideration and approval. Subsequently, the City Council will consider the final reports and consider ordering the levy of assessments during a future public hearing. Landscaping and Lighting District 1983-2 (Stagecoach Road) This District was formed with the initial assessment in the 1985 -86 tax year. The District provides funds for the maintenance of certain landscape improvements along Stagecoach Road. The District's boundaries include all of Tract 4719 and cover the 150-unit single-family Dublin Hills Estates and the Amador Lakes apartments. Landscaping and Lighting District 1986-1 (Villages at Willow Creek) This District was formed with the initial assessment in the 1987-88 tax year. The District encompasses the Villages at Willow Creek development along Dougherty Road, north of Amador Valley Boulevard. The boundary includes apartment complexes, condominiums, and a 145-unit single family development (Ridgecreek). Landscaping and Lighting District 1997-1 (Santa Rita Area) This District was formed at the request of the Alameda County Surplus Property Authority and the initial assessment was levied in the 1997-98 tax year. The area covered by this District is bound by Gleason Drive on the north, Interstate 580 on the south, Arnold Road on the west, and Tassajara Road on the east. A draft resolution authorizing the preparation of the required Engineer's Reports for the three LLDs is included as Attachment 2. STRATEGIC PLAN INITIATIVE: None. 119 Page 6 of 6 NOTICING REQUIREMENTS/PUBLIC OUTREACH: The City Council Agenda was posted. ATTACHMENTS: 1) Resolution Initiating Formation of Dublin Street Lighting Assessment District 2026-1 and Directing the Preparation of the Required Engineer’s Report Pursuant to the Landscaping and Lighting Act of 1972 and Section 4 of Article XIIID of the California Constitution 2) Resolution Directing the Preparation of the Annual Engineer’s Reports for Fiscal Year 2026-27 for Landscaping and Lighting Districts 1983-2, 1986-1, and 1997-1 3) Map of Existing Street Lighting Maintenance Districts 4) Map of Existing Landscaping and Lighting Districts 5) City Council Staff Report dated January 20, 2026, without attachments 6) Dublin Street Lighting Assessment District No. 2026-1 Summary of Estimated Costs and Proposed Maximum Assessments 120 Attachment 1 Reso. No. XX-26, Item X.X, Adopted XX/XX/2026 Page 1 of 2 RESOLUTION NO. XX – 26 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN INITIATING FORMATION OF DUBLIN STREET LIGHTING ASSESSMENT DISTRICT 2026-1 AND DIRECTING THE PREPARATION OF THE REQUIRED ENGINEER’S REPORT PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972 AND SECTION 4 OF ARTICLE XIIID OF THE CALIFORNIA CONSTITUTION WHEREAS, Dublin Street Lighting Maintenance District (SLMD) 1983-1 was established by the City Council on August 2, 1983. SLMD 1983-1 funds the maintenance and operation costs of public street lighting within its boundaries . The assessments authorized for this district do not include an annual escalator and are no longer sufficient to keep pace with expenditures; and WHEREAS, Dublin SLMD 1999-1 was established by the City Council on June 1, 1999, to fund the maintenance and operating costs of public street lighting within its boundaries. The City Council now desires to update the district’s assessment methodology to reflect current best practices; and WHEREAS, Dublin SLMD 1983-1 and SLMD 1999-1 account for all street lighting that is the responsibility of the City, other than the lighting provided by Community Facilities District (CFD) 2017-1; and WHEREAS, the City Council is proposing to consolidate and replace Dublin SLMD 1983-1 and SLMD 1999-1 with a single district named Dublin Street Lighting Assessment District (SLAD) 2026-1 (the “District”) to provide long-term financial sustainability of the City’s public street lighting system, improve administrative efficiency, and provide a uniform assessment methodology across the City; and WHEREAS, Section 22585 of the Landscaping and Lighting Act of 1972 (the “Act”) requires the City Council to adopt a resolution initiating proceedings for the formation of SLAD 2026-1, describing the district and its improvements, specifying the distinctive designation of the proposed district, and ordering the District Engineer to prepare and file a report in accordance with Article 4 of the Act; and WHEREAS, the City of Dublin contracted with Francisco & Associates to serve as the District Engineer; and WHEREAS, the improvements for the District are generally described as the operation, maintenance, and servicing of street lighting that is the responsibility of the City; and WHEREAS, Section 4 of Article XIIID of the California Constitution outlines the procedures and requirements for imposing special assessments on properties within the district, stating that only parcels receiving a "special benefit" from district improvements can be assessed, and that the City must identify all such parcels and provide proper notice and ballots to property owners before holding a public hearing on the proposed assessments for the district; and WHEREAS, the City shall not impose assessments for the District if there is a majority protest. A majority protest exists if, upon the conclusion of the public hearing, ballots submitted in opposition to the District assessments exceed the ballots submitted in favor of the District 121 Reso. No. XX-26, Item X.X, Adopted XX/XX/2026 Page 2 of 2 assessments. In tabulating the ballots, the ballots shall be weighted according to the proportional financial obligation of the affected property; and WHEREAS, the City intends to continuing levying assessments for SLMD 1983-1 and SLMD 1999-1 if there is a majority protest opposing the District assessments. NOW, THEREFORE, BE IT RESOLVED, the Dublin City Council hereby initiates proceedings for the formation of SLAD 2026-1 and directs the District Engineer to prepare and file a report in accordance with Article 4 of the Act and Section 4 of Article XIIID of the California Constitution. PASSED, APPROVED AND ADOPTED BY the City Council of the City of Dublin, on this 3rd day of March 2026, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ______________________________ Mayor ATTEST: _________________________________ City Clerk 122 Attachment 2 Reso. No. XX-26, Item X.X, Adopted XX/XX/2026 Page 1 of 2 RESOLUTION NO. XX – 26 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN DIRECTING THE PREPARATION OF THE ANNUAL ENGINEER’S REPORTS FOR FISCAL YEAR 2026-27 FOR LANDSCAPING AND LIGHTING DISTRICTS 1983-2, 1986-1, AND 1997-1 WHEREAS, by Resolution No. 11-84, the City Council ordered the formation of City of Dublin Landscape and Lighting District (LLD) 1983-2 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, by Resolution No. 129-86, the City Council ordered the formation of LLD 1986- 1 pursuant to the provisions of the Act; and WHEREAS, by Resolution No. 115-96, the City Council ordered the formation of LLD 1997- 1 pursuant to the provisions of the Act; and WHEREAS, pursuant to Section 22622 of the Act, the City Council must adopt a resolution ordering the Engineer to prepare the Engineer’s Report required by the Act to establish the assessments for Fiscal Year 2026-27; and WHEREAS, there are no new improvements or substantial changes in existing improvements maintained by LLD 1983-2, LLD 1986-1, and LLD 1997-1. NOW, THEREFORE, BE IT RESOLVED that the Dublin City Council hereby designates the City Engineer, or their designee, as Engineer for purposes of preparing and filing with the Clerk a written report in accordance with the Act; said Engineer is hereby directed to apportion the proposed assessments in accordance with the benefits received from the improvements by the respective lots, pieces, and parcels of land within each District, and said Engineer is hereby directed to prepare and file such report forthwith for Fiscal Year 2026-27. {Signatures on the following page} 123 Reso. No. XX-26, Item X.X, Adopted XX/XX/2026 Page 2 of 2 PASSED, APPROVED AND ADOPTED BY the City Council of the City of Dublin, on this 3rd day of March 2026, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ______________________________ Mayor ATTEST: _________________________________ City Clerk 124 Attachment 3 SLMD SLMD 125 Kolb Park PassatempoPark DublinSportsGrounds PiazzaSorrento AlamoCreek Park BrayCommons StagecoachPark TedFairfieldPark MartinCanyon CreekOpen SpaceSchaeferRanch Park SeanDiamondPark PositanoHills Park MapeMemorialPark DolanPark ShannonPark Dougherty HillsDog Park DoughertyHills OpenSpace DevanySquare FallonSports Park ButterflyKnoll Park Clover Park CottonwoodCreek Park Don BiddleCommunity Park Heritage Parkand Museums EmeraldGlen Park Forest Park JordanRanch Park Sunrise Park Wallis RanchCommunity Park Ta s s a j a r a R d Gleason Dr Fallon R d HaciendaDr Dublin Bl Do u g h e r t y R d Central Pw Silvergate Dr Amado r V a l l e y Bl Sa n R a m o n R d Ar n o l d R d PalisadesDr Vi l lage Pw Am a dor PlazaRd PositanoPw Sc a r l e t t D r 0 1 Mile 580 680 C A M P P A R K S LANDSCAPING DISTRICTS Landscaping District 83-2 86-1 97-1 Camp Parks RFTA City of Dublin City Facility Park SchoolDate Updated: 2/19/2026 PUBLIC WORKS 100 CIVIC PLAZA CITY OF DUBLIN Attachment 4 126 STAFF REPORT CITY COUNCIL Page 1 of 3 Agenda Item 2.1 January 20, 2026 TO: Honorable Mayor and City Councilmembers 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 pay for the installation, Attachment 5 127 Page 2 of 3 operation, and maintenance of such improvements. 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, maintenance, 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 128 Page 3 of 3 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 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 1999-1 129 Attachment 6 Dublin Street Lighting Assessment District No. 2026-1 Summary of Estimated Costs and Proposed Maximum Assessments Maintenance Contract with Alameda County $100,000 $105,000 $205,000 PG&E Electricity Costs $350,000 $400,000 $750,000 District Administration and Supplies $35,000 $40,000 $75,000 Unforeseen Expenditures and Contingencies $48,500 $54,500 $103,000 County Collection Fee (1.7% of Assessments) $10,000 $11,000 $21,000 General Benefit Portion1 $73,560.00 $13,300.00 $86,860 Equivalent Dwelling Units (EDUs) 31,049 25,753 N/A Maximum Assessment Rate for Decorative Areas2 $17.00 $45.00 $62.00 1General Benefit = Major Roadway Component (1 1.75% of Budget) + Local Roadway Component (2% of Budget) + $4,000 for Camp Parks. 2Approx. 25% of Local Roadway EDUs are Decorative Areas. Factor of 2.5 applied to Decorative Areas due to Enhanced Benefits. 130 Landscape and Lighting Districts and Proposition 218 March 3, 2026 131 Overview of City Street Lighting Districts Dublin has three existing districts that provide funding for its public street lighting system: •Street Lighting Maintenance District 1983-1 (SLMD 1983-1) encompasses the portions of the City primarily consisting of non-decorative street lighting. •Street Lighting Maintenance District 1999-1 (SLMD 1999-1) encompasses the portions of the City primarily consisting of decorative street lighting. •Community Facilities District 2017-1 (CFD 2017-1) provides funding for public street lighting associated with the Boulevard neighborhood. 132 Overview of City Landscaping Districts Dublin has three existing Landscape and Lighting Districts (LLD) that provide funding for public landscaping improvements: •LLD 1983-2: maintenance of landscaping improvements along Stagecoach Road within Tract 4719. •LLD 1986-1: maintenance of landscaping improvements for neighborhoods west of Dougherty Road and north of Amador Valley Boulevard. •LLD 1997-1: maintenance of landscaping improvements for the Santa Rita neighborhoods. 133 New District Formation Proceedings •Existing SLMD 1983-1 does not have an authorized assessment escalator and is experiencing an annual operating deficit of ~$150k that is expected to continue increasing into the future. •If assessment revenues remain the same, the City’s General Fund will need to offset the operating deficit beginning Fiscal Year 2027-28 to continue current service levels. •On May 20, 2025, City Council directed Staff to initiate the process to increase the assessment for SLMD 1983-1. •On November 4, 2025, the City Council approved an agreement with Francisco and Associates to assist Staff with evaluating options to address the funding shortfall in SLMD 1983-1, which included studying whether to consolidate SLMDs 1983-1 and 1999-1. •On January 20, 2026, the City Council held a Study Session, received a report on the street lighting districts, and directed Staff to proceed with the process under Proposition 218 to establish a new single district that replaces SLMDs 1983-1 and 1999-1. 134 Overview of Proposed SLAD 2026-1 •Staff propose the new Street Lighting Assessment District (SLAD) No. 2026-1. •SLAD 2026-1 would encompass the entire City, except the Boulevard and Camp Parks, consolidating existing SLMD 1983-1 and SLMD 1999-1. •Approval of SLAD 2026-1 will address the increasing funding shortfall for SLMD 1983-1, implement a uniform assessment methodology across the City using current best practices for assessments, and provide reserves for future capital improvement projects. •Proposition 218 proceedings are required to approve formation of SLAD 2026- 1. 135 Funding Structure for SLAD 2026-1 •City will cover portion of annual street lighting budget attributed to general benefit to the public at large (12% for major roadways and 2% for local roadways). The City’s portion is estimated to be $87k for FY 2026-27. •SLAD 2026-1 will be comprised of the three benefit zones with separate City accounts to track revenues and expenditures: o Major Roadway Street Lighting Benefit Zone. o Decorative Street Lighting Benefit Zone. o Non-Decorative Street Lighting Benefit Zone. •SLAD 2026-1 will generate $1.17 million in assessments for FY 2026-27. •Existing fund balances for SLMD 1983-1 and SLMD 1999-1 will be allocated to the appropriate new City account. 136 Proposed Assessments for SLAD 2026-1 •Single-Family Homes and Condominiums assessed per parcel. •Apartments and Multi-Family Residential assessed per residential unit. •Non-residential property assessed based on parcel area and building square footage. •Below is a summary of the proposed maximum Fiscal Year 2026-27 assessments for single-family homes for each Benefit Zone. o Major Roadway Benefit Zone: $17 ($1.42 per month)o Decorative Benefit Zone: $45 ($3.75 per month)o Non-Decorative Benefit Zone: $18 ($1.50 per month) •Maximum assessments will be authorized to increase annual by 3% or the annual change in the published Consumer Price Index, whichever is greater. 137 Proposed Assessments for Non-Decorative 138 Proposed Assessments for Decorative 139 Proposed Assessments for Private 140 SLAD 2026-1 Public Outreach Efforts •Dedicated Informational Webpage with Frequently Asked Questions (FAQs). •Social Media Posts. •Dublin Digest Newsletter and Newsflash Alerts. •Tabling at St.Patrick’s Day Celebration and Farmer’s Market. •Informational Video. •HOA Engagement. •Informational Mailer with Ballot. •Virtual Community Meeting on Thursday,May 7th at 7pm. 141 Next Steps in the Proposition 218 Process •March 3, 2026: City Council Authorizes Proposition 218 Proceedings. •April 7, 2026: City Council Approves Engineer’s Reports for SLAD 2026-1 (and LLDs). •May 1, 2026: Deadline for mailing of notices and ballots to all affected property owners in the City (minimum of 45 days prior to Public Hearing). •May 7, 2026: Virtual Community Meeting (7:00pm). •June 16, 2026: Public Hearing for SLAD 2026-1 (and LLDs). •Ballots must be returned by the end of the Public Hearing. •Returned ballots are weighted based on the proposed assessment amount. •June 17, 2026: Ballots tabulated in a public setting. •July 21, 2026: If a majority of returned ballots do not oppose the formation of SLAD 2026-1, City Council may adopt a Resolution approving the formation of the new district. 142 Recommendations •Adopt the Resolution Initiating Formation of Dublin Street Lighting Assessment District No. 2026-1 and Directing the Preparation of the Required Engineer’s Report Pursuant to the Landscaping and Lighting Act of 1972 and Section 4 of Article XIIID of the California Constitution. •Adopt the Resolution Directing the Preparation of the Annual Engineer’s Reports for Fiscal Year 2026-27 for Lighting and Landscaping Districts 1983-2, 1986-1, and 1997-1. 143