Title
Adoption of Resolution Approving the Engineer’s Report Declaring the City of Alameda's Intention to Order the Levy and Collection of Assessments and Providing for Notice of Public Hearing on June 18, 2024 - Island City Landscaping and Lighting District 84-2, Zones 1, 4, 5, 6 and 8 (Public Works 27041530, 27141530, 27241530, 27341530 and 27541530)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
The purpose of the Island City Landscape and Lighting District 84-2, various locations, (District) is to provide enhanced maintenance in the public areas of the district’s six zones throughout the City of Alameda (City). To levy next fiscal year's assessments, the City is required to follow a prescribed legal process to prepare the annual Engineer’s Report (Report). This annual process began in March 2024 with the City Council’s appointment of an engineer and an attorney for the District. Staff is now bringing a draft Report outlining the proposed budgets and assessments for the coming year for approval as well as approval to set a public hearing for June. After the public hearing, City Council will consider approving the assessment for the following year. Zone 7 of the District has a separate Engineer’s Report and will be considered by City Council as a separate item on tonight’s agenda.
BACKGROUND
On June 7, 1984, City Council established the District, whose purpose is to provide enhanced maintenance in certain zones throughout the City. This work, which varies among the zones, includes regular litter collection, landscape maintenance of the medians and planters, and sidewalk cleaning.
To levy the next fiscal year's assessments, the City is required to follow a prescribed legal process. This annual process began on March 5, 2024, with City Council’s appointment of an Engineer-of-Work (Engineer) and an Attorney-of-Record (Attorney) for the District. Staff now seeks City Council’s approval of the draft Report outlining the proposed budgets and assessments for the coming year and setting a public hearing date of June 18, 2024. After the public hearing, City Council will consider approving the assessments for the following year. The resolution is required to be published at least once in a local paper with a minimum of 10 days between the first publication of the City's resolution and the public hearing.
DISCUSSION
The draft Report was prepared by NBS, a consultant specializing in assessment districts, in accordance with Section 22565 et seq. of the California Streets and Highways Code. The draft Report provides an annual budget to provide enhanced maintenance within five of the District’s six zones throughout the city, excluding Zone 7 which is covered by a separate Report. Public Works staff worked with the stakeholders of the zones to prepare the proposed budgets and work plans for the coming year. Maps of the five zones covered by this Report are attached as Exhibit 1 and the draft Report, attached as Exhibit 2, provides an estimate of Fiscal Year (FY) 2024-25 costs for each zone. The zones for enhanced maintenance are:
Zone 1 - Lincoln Avenue, between Sherman Street and St. Charles Street: This zone is responsible for the maintenance of the landscaped medians in the 1100 and 1200 blocks of Lincoln Avenue, including the utilities for irrigation. The revenue received through the assessments for this zone is sufficient to cover the maintenance budget. For FY 2024-25, the property assessments will remain unchanged from the previous year's assessment.
Zone 2 and Zone 3: [See Zone 8. In 2014, Zones 2 and 3 conducted a property owner balloting process to combine into one zone (Zone 8) and increase assessments.]
Zone 4 - Park Street, from the Park Street Bridge to San Jose Avenue, including areas of Webb Avenue, Lincoln Avenue, Santa Clara Avenue, Central Avenue, and Encinal Avenue. This zone funds maintenance, supplies, and seasonal banners/decorations on Park Street.
In FY 2018-19, at the direction of the Zone 4 business association board (Downtown Alameda Business Association (DABA)) the Zone conducted balloting to increase assessments, add areas to the district and fund improved sidewalk cleaning, better maintenance of the public litter cans and a healthier reserve. The balloting was successful and in FY 2019-20 the increased assessment was collected, and Public Works staff started working with the Zone to increase services.
The revenues received through the assessments from this zone are sufficient to fund the proposed FY 2024-25 maintenance budget. For FY 2024-25 the proposed property assessment includes an annual Consumer Price Index (CPI) increase of 2.3661%.
Within Zone 4 the Engineer also identified a general benefit, which is an overall and similar benefit to the people who do not live in or intend to conduct business within the Zone. The amount of general benefit of $7,682.68 for the Zone’s maintenance activities cannot be funded via property owners’ assessments. The funding for this portion will come from the General Fund.
Zone 5 - Harbor Bay Business Park: This zone funds irrigation and landscape maintenance within the Harbor Bay Business Park (HBBP), including tree trimming, sidewalk and pathway repairs, streetlight maintenance, and utilities. Based on previous approval by the property owners, an automatic CPI increase is applied to the assessment. The revenues received through the assessments from this zone are sufficient to fund the proposed FY 2024-25 maintenance budget. For FY 2024-25, the proposed property assessment includes an annual CPI increase of 2.3661%, which is the CPI for the Bay Area for February 2024. In FY 2024-25, it is projected that the revenue received through the assessments for this zone is sufficient to cover the maintenance budget and required operating reserve. The budget also includes capital investment in drought tolerant landscaping, hand dryers for the public restrooms at the ferry terminal and shoreline park and other capital improvements totaling approximately $114,000.
Zone 6 - Marina Village Commercial Areas: This zone funds irrigation and landscape maintenance costs within the commercial areas of Marina Village, including tree trimming, the linear shoreline park, sidewalk and pathway repairs, street lighting maintenance, and energy costs. In FY 2024-25, the revenue received through the assessments from this zone and any accumulated fund balance is sufficient to fund 100% of the proposed maintenance budget and administration costs. The budget also includes capital investment in landscaping improvements and provision for the engineering consulting phase necessary to replace the existing wooden boardwalk in future years. Based on previous approval by the property owners, an automatic CPI increase is applied to the assessment. For FY 2024-25, the proposed property assessment includes an annual CPI increase of 2.3661%, which is the CPI for the Bay Area for February 2024.
Zone 8 - Webster Street from Central Avenue to Atlantic Avenue: This zone funds maintenance and seasonal banners on Webster Street. In 2014, Zones 2 and 3 conducted a property owner balloting process to combine into one zone (Zone 8) and increase assessments. The revenues received through the assessments from this zone are sufficient to fund the proposed FY 2024-25 maintenance budget. For FY 2024-25, the proposed property assessment includes an annual CPI increase of 2.3661%, which is the CPI for the Bay Area for February 2024.
Within Zone 8 the Engineer has also identified a general benefit, which is an overall and similar benefit to the people who do not live in or intend to conduct business within the zone. The amount of general benefit of $2,920.14 for the zone’s maintenance activities cannot be funded via property owners’ assessments. The funding for this portion will come from the General Fund.
In 2016, the City started working with NBS to ensure that each zone has the appropriate operating and capital reserves. City policy is to maintain an operating reserve consistent with Section 22569 of the Landscaping and Lighting Act as follows:
The estimate of the costs of the improvements for the fiscal year shall contain estimates for all of the following:
(a) The total costs for improvements to be made that year, being the total costs of constructing or installing all proposed improvements and of maintaining and servicing all existing and proposed improvements, including all incidental expenses. This may include a reserve that shall not exceed the estimated costs of maintenance and servicing to December 10 of the fiscal year, or whenever the city expects to receive its apportionment of special assessments and tax collections from the county, whichever is later.
A capital reserve is established and maintained consistent with any upcoming improvements in the zone(s). The Report was updated to show the reserves and fund balance for each zone and any proposed capital improvement plan for each zone.
ALTERNATIVES
• Approve proceeding with levying assessments for the coming year at the allowable maximum assessment.
• Approve proceeding with levying assessments for the coming year at a rate below the allowable maximum assessment. Doing so would not change the calculation of the maximum possible assessment for subsequent years, and in future years City Council could elect to set assessments at the maximum level. The potential impact on the Zones of the District is that the level of service would need to be reduced to bring the budget in line with the available assessment and/or more reserve funds would be needed to keep the current level of service. Further use of reserves may impact the near-term ability to complete capital improvements.
• Do not proceed with approving levying assessments for the coming year. The impact of this option would mean that the City will not be able to collect the assessments for the District and services would be reduced and/or another funding source required.
FINANCIAL IMPACT
Direct costs associated with this work, such as landscape maintenance, are paid by the assessment district and apportioned to each zone based on the individual zone's percentage of the total work. Funds not expended in a fiscal year remain within the fund for the respective Zone and may be used for future expenses.
The District Island City Maintenance Fund (276) is charged indirect costs for expenses related to the annual levy process. For this coming year, these fees will be $42,061 which represents the District’s share of the consultant costs to prepare the Engineer’s Report and administer the levy, as well as the Alameda County fees, as calculated by NBS. There is no direct impact on the General Fund from this action. However, General Fund contributions will be considered by City Council as part of the City budget process for the general benefit received from the work performed in the zones. maintenance in the zones (see table below).
|
Fund/Program |
Purpose |
Amount |
|
Public Works Administration (31041500) |
General benefit contribution on Park St. in Zone 4 |
$ 7,682.68 |
|
Public Works Administration (31041500) |
General benefit contribution on Webster St. in Zone 8 |
$ 2,920.14 |
|
|
|
|
|
Alameda Recreation and Park Maintenance (10051450) |
Maintaining the shoreline park along HBBP within Zone 5 |
$ 15,000.00 |
|
|
|
|
|
Annual Assessment Administration (27641530) |
Administrative costs proportionally shared by each zone |
$ 42,061.00 |
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code. This relates to the Strategic Priority to Invest in Transportation, Infrastructure, Economic Opportunities, & Historic Resources.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACT
Maintenance activities supported by these assessments can counter potential, near-term, negative impacts of climate change. The removal of litter and debris from public areas and thus the municipal storm drainage system will assist with providing better storm drainage and decreasing the risk of local flooding, results that improve local resiliency to potential climate change.
RECOMMENDATION
Adopt a resolution approving the Engineer’s report declaring the City of Alameda's intention to order the levy and collection of assessments and providing for notice of public hearing on June 18, 2024 - Island City Landscaping and Lighting District 84-2 (various locations), Zones 1, 4, 5, 6 and 8.
Respectfully submitted,
Erin Smith, Public Works Director
By,
Emily Antenen, Management Analyst
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibits:
1. Zones 1, 4, 5, 6, and 8 Maps
2. Engineer’s Report