It is recommended that the City Council:
1. Adopt the following resolution:
2. Following adoption of Resolution No. 2026-68, approve the Preliminary Fiscal Year 2026-27 Engineer's Report for the Citywide Lighting and Maintenance District.

3.Following approval of the Preliminary Fiscal Year 2026-27 Engineer's Report for the Citywide Lighting and Maintenance District, adopt the following resolution:

The Landscaping and Lighting Act of 1972 (California Streets and Highways Code section 22500 et seq.) (the "Act") specifies the procedures for renewal of landscape maintenance districts. The Citywide Lighting and Maintenance District ("Citywide District") was established in 1976. As the name implies, this District encompasses the entire City. Prior to Fiscal Year 1997-1998, the Citywide District funded a variety of public improvements and services which included: street tree maintenance, median maintenance, park maintenance, municipal pool maintenance, area lighting maintenance, traffic signal maintenance, traffic engineering, and street lighting engineering. Since the passage of Proposition 218 in November 1996 and the subsequent property owner approval in July 1997, the Citywide District assessment currently funds only those services that have been designated as a "Special Benefit", which is the maintenance of most of the streetlights and street trees within the City.
The Citywide District funds the operation and maintenance of assessable (special benefit) street trees and street lighting. These funds are used for the operations and maintenance of streetlights, trimming of street trees, and removal and replacement of diseased street trees.

The first step in the process is the adoption of a resolution ordering the preparation of an Engineer's Report for the District (Attachment No. 1).

The Preliminary Engineer's Report, prepared by Webb Municipal Finance, LLC, has been completed and filed with the Office of the City Clerk and includes plans and specifications for improvements, estimated costs, an assessment diagram, and assessment spread for the estimated costs.

Since the assessments for the Citywide District were approved in a mail ballot election in July 1997 in accordance with Proposition 218, the renewal for the Citywide District can be completed in accordance with the requirements of the Act, provided the assessment rates and/or the assessment methodology do not change. The voter-approved rates for the Citywide District included a provision for not more than a 2.00% annual increase based on the Consumer Price Index (CPI). The CPI for a one-year period from March 2025 to March 2026 for the Los Angeles, Long Beach, and Anaheim areas is 3.2%. Therefore, current rates are set at a maximum increase of 2.00% or $61.20. The maximum assessment is adjusted annually and is calculated independent of the annual budgets and proposed assessments established for each district zone. Any proposed annual assessment less or equal to this maximum assessment is not considered an increased assessment, even if the proposed assessment is greater than the assessment applied in the prior fiscal year. 

The Citywide District funds the operation and maintenance of assessable (special benefit) street trees and street lighting. These funds are used for the operations and maintenance of streetlights, trimming of street trees, and removal and replacement of street trees (due to disease, emergency uprooting or downed trees/limbs, et cetera). During the 2023-2024 Fiscal Year, the City entered into a new agreement for median and landscaping services that addresses increased scope of landscape and median maintenance needs. This scope of work will continue and be maintained throughout FY 2026-2027. 

The next step in the renewal process is the approval of the Engineer’s Report and adoption of Resolution of Intention (Attachment No. 2) concerning the levy and collection of assessments for the District. The Act also requires the Resolution of Intention to give notice of, and fix a time and place for, a public hearing regarding the proposed assessments. Pursuant to the Act, the public hearing must be held at a regular meeting before August 10th. Staff is recommending setting a public hearing date of July 21, 2026. At the public hearing, the City Council will consider any written and oral comments regarding the level of assessments and proposed maintenance and capital improvement work within the District. The public hearing requires a public notice, in the form of the Resolution of Intention, to be posted and published in a locally circulated newspaper, but does not require notices to be mailed to each resident. Upon the conclusion of the hearing, the City Council should adopt a resolution confirming the Engineer’s Report and assessment levy either as proposed or as modified by the City Council.

The City Attorney has reviewed the resolutions and approved them as to form.

The City Council has the following options: 
1.    Approve Staff's recommendation; or
2.    Provide alternative direction

This item is statutorily exempt from the provisions of the California Environmental Quality Act (“CEQA”) pursuant to Section 15273 (Rates, Tolls, Fares, and Charges) and generally exempt from CEQA pursuant to Section15061(b)(3) of the CEQA Guidelines in that it consists of the continuing maintenance and operations of landscaping and irrigation within the district, which does not have the potential for causing a significant effect on the environment.