Report to Mayor and City Council
Tuesday, September 04, 2018
Consent
SUBJECT:
Title
CONSIDERATION OF RESOLUTION NO. 18-122, GRANTING CONSENT AND JURISDICTION TO THE COUNTY OF LOS ANGELES IN THE MATTER OF COUNTY LIGHTING MAINTENANCE DISTRICT 1697 AND COUNTY LIGHTING DISTRICT LLA-1, CARSON ZONE, CITY OF CARSON PROJECT L091-2017; AND RESOLUTION NO. 18-123, APPROVING AND ACCEPTING THE NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUES RESULTING FROM ANNEXATION OF L 091-2017 TO COUNTY LIGHTING MAINTENANCE DISTRICT 1697 (CITY COUNCIL)
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I. SUMMARY
The County of Los Angeles Department of Public Works has submitted a resolution to the City of Carson granting consent and jurisdiction to the County of Los Angeles to annex an area of the City to County Lighting Maintenance District No. 1697 and County Lighting District LLA-1 (Exhibit No. 1). A joint resolution between the County of Los Angeles and the City of Carson (and various other taxing agencies) approving and accepting the negotiated exchange of property tax revenues (Exhibit No. 2) resulting from these annexations is also required. The County of Los Angeles is requesting that the City adopt these resolutions to reflect the proposed annexation as it applies to locations within the City (Exhibit No. 3).
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. WAIVE further reading and ADOPT Resolution No. 18-122, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, GRANTING CONSENT AND JURISDICTION TO THE COUNTY OF LOS ANGELES IN THE MATTER OF COUNTY LIGHTING MAINTENANCE DISTRICT 1697 AND COUNTY LIGHTING DISTRICT LLA-1, CARSON ZONE, CITY OF CARSON PROJECT L 091-2017.”
2. WAIVE further reading and ADOPT Resolution No. 18-123, “A JOINT RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES; THE BOARD OF TRUSTEES OF THE GREATER LOS ANGELES COUNTY VECTOR CONTROL DISTRICT; THE BOARD OF DIRECTORS OF THE COUNTY SANITATION DISTRICT NO. 8 OF LOS ANGELES COUNTY (COUNTY SANITATION DISTRICT NO. 8); THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA; AND THE BOARD OF DIRECTORS OF THE WATER REPLENISHMENT DISTRICT OF SOUTHERN CALIFORNIA APPROVING AND ACCEPTING THE NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUES RESULTING FROM ANNEXATION OF L 091-2017 TO COUNTY LIGHTING MAINTENANCE DISTRICT 1697.”
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III. ALTERNATIVES
1. DENY the proposed annexation. However, denying the proposed annexation will obligate the City to pay 100% of the operation and maintenance costs of the street lights.
2. TAKE another action the City Council deems appropriate.
IV. BACKGROUND
As part of the conditions of approval established by the City for various developments within the City, developers have been required to annex their properties to County Lighting Maintenance District 1697, allowing the County to provide funds for the operation and maintenance of existing street lights in the public right-of-way. Currently, six parcels located at 600 W. Carson Street (APN 7343-020-091 thru 096), as referenced in Exhibit No. 3 are being processed by the County of Los Angeles Department of Public Works for annexation to County Lighting Maintenance District 1697 and County Lighting District LLA-1. Since this area is within the boundary of the City of Carson, permission from the City is required to accomplish annexation.
The procedure requires the City to adopt a negotiated tax exchange resolution in order to proceed with annexation into the lighting district. For all new annexations into a County administered County Lighting Maintenance District, the procedure requires processing the exchange of property tax revenues with all non-exempt taxing agencies, including the City of Carson. Under Section 99.01 of the Revenue and Taxation Code, special districts providing new services to an area as a result of a jurisdictional change are entitled to a share of the annual tax increment generated in the area being annexed. County Lighting Maintenance District 1697 is defined under Section 95(m) of the Revenue and Taxation Code as a special district. County Lighting Maintenance District 1697’s share of the annual tax increment is to be taken from all of the other local taxing agencies providing services within the annexed area, with the exception of school entities which are exempted by law. The approving bodies of the local taxing agencies providing services are the following: The Board of Supervisors of the County of Los Angeles; the Board of Trustees of the greater Los Angeles County Vector Control District; the Board of Directors of the County Sanitation District No. 8 of Los Angeles County (County Sanitation District No. 8); the City Council of the City of Carson, California; and the Board of Directors of the Water Replenishment District of Southern California.
This annexation will formalize the City’s obligation to allocate a portion of the property tax revenue to County Lighting Maintenance District 1697, and Los Angeles County’s obligation to provide funds for the operation and maintenance of the installed street lights. Currently, the property tax share percentage from APN 7343-020-092, APN 7343-020-093, and APN 7343-020-096 for the City of Carson is 6.74%, and from this tax share percentage, the City would allocate 0.07% to County Lighting Maintenance District 1697; the City’s net property tax share would then be 6.67%. In addition, the property tax share percentage from APN 7343-020-091, APN 7343-020-094, and APN 7343-020-095 for the City of Carson is 6.88%, and from this tax share percentage, the City would allocate 0.08% to County Lighting Maintenance District 1697; the City’s net property tax share would then be 6.80%. The City’s tax share percentage was calculated using the formula approved by both the Auditor-Controller and the County Counsel. The property tax share percentage for the rest of the agencies providing services is shown on the attached Property Tax Transfer Resolution Worksheets for L 091-2017 (Exhibit No. 4). In addition, as a result of the increase in the street lighting assessment rate adopted by the Board of Supervisors of the County of Los Angeles, each property owner of the area being annexed will be assessed $35.00 per year for a typical residential lot and $175.00 per year for a typical commercial lot. This assessment will be levied to the property tax bill received by the property owner every year. This annexation request is standard procedure and must be completed so that funds can be provided to County Lighting Maintenance District 1697 for the operation and maintenance of the street lights.
The County has prepared a joint resolution between the County of Los Angeles and the City of Carson (and other various taxing agencies) approving and accepting the negotiated exchange of property tax revenues resulting from these annexations. It is requested that the City Council adopt these resolutions in order to allow the Board of Supervisors of the County of Los Angeles funding approval to be concurrent with the board’s approval of the annexation itself (Exhibit No. 5).
City staff concurs with the recommendation of the County of Los Angeles Department of Public Works and recommends that the City Council adopt these resolutions.
V. FISCAL IMPACT
The Board of Supervisors of the County of Los Angeles adopted a resolution increasing the annual base assessment rate to $35.00 per unit. The current assessment per year for a typical residential lot is $35.00. Assessment for commercial properties is proportionally higher. The City will contribute 0.07% of the property tax share from the annexed assessor’s parcels (APN 7343-020-092, APN 7343-020-093, APN 7343-020-096), and 0.08% of the property tax share from the annexed assessor’s parcels (APN 7343-020-091, APN 7343-020-094, APN 7343-020-095) to County Lighting Maintenance District 1697. The remaining balance would be transmitted to the City’s general fund.
VI. EXHIBITS
1. Resolution No. 18-122. (pgs. 5-7)
2. Resolution No. 18-123. (pgs. 8-13)
3. Location Map - 600 W. Carson Street. (pg. 14)
4. Property Tax Transfer Resolution Worksheet - L 091-2017. (pgs. 15-18)
5. Letter from the County of Los Angeles / Traffic and Lighting Division, dated August 2, 2018. (pgs. 19-20)
Prepared by: Raymond Velasco, PE, Senior Civil Engineer