Title
Adoption of Resolution Initiating Proceedings for a Proposed Increase in Assessments, the Consolidation of Zones 2 and 3 into a Single Zone 8 (Webster Street), and the Filing of an Assessment Engineer's Report for Island City Landscaping and Lighting District 84-2, Proposed Zone 8, and
Adoption of Resolution Preliminarily Approving the Annual Report Declaring Intention to Order Levy and Collection of Assessments and Providing Notice of Public Hearing on July 15, 2014, Island City Landscaping and Lighting Maintenance District 84-2, Zone 8. (Public Works 275200, 275300)
Body
To: Honorable Mayor and Members of the City Council
From: John A. Russo, City Manager
Re: Adoption of Resolution to Initiate Proceedings for an Increase in Assessments, Consolidate Zones and File an Engineer's Report, and a Resolution to Preliminarily Approve the Annual Report Declaring the Intention to Order the Levy and Collection of Assessments for Island City Landscaping and Lighting Maintenance District No. 84-2 Zones 2 and 3 (proposed to be a consolidated Zone 8) (Webster Street) and Provide Notice of Public Hearing on July 15, 2014. (Public Works 275200, 275300)
BACKGROUND
The City's Island City Landscaping and Lighting Maintenance District No. 84-2 (District) began in 1984. Zones 2 and 3 of the District cover Webster Street from Central Avenue to Atlantic Avenue.
District assessments in these zones fund enhanced maintenance of the sidewalks, litter cans, and landscaping. These assessments have been unchanged since the early 1990s. Consequently, as costs have increased, the level of maintenance decreased.
In 2013, staff began discussions with the West Alameda Business Association (WABA) to explore increasing assessments to fund improved maintenance. The board of directors of WABA unanimously approved proposals to increase property owners' assessments. WABA approved doubling assessments over six years with cost-of-living increases thereafter. Increased assessments would fund better sidewalk cleaning, more thorough maintenance of the public litter cans, more frequent tree pruning, and healthier reserves for its zone.
On February 4, 2014, the City Council awarded a contract for conducting the analysis, balloting, and reporting required to increase FY14-15 assessments in Zones 2 and 3. This analysis is complicated because any assessment increase triggers Proposition 218, passed long after the District's founding. Proposition 218's "special benefit" analysis requires a parcel-by-parcel review of land use and benefits, rather than the previous analysis which was exclusively based on the parcel's acreage and frontage.
As a result of these changes, the next year's average increase per property owner on Webster Street is approximately 25%, as WABA proposed. However, due to the special benefit analysis, the increase in each individual property owner's assessment will vary dramatically and, in some cases, decrease.
City staff shared the results of the analysis with WABA. WABA has indicated it wants to proceed with balloting of its property owners and is holding a property owners' meeting on May 8 to fully inform property owners and answer questions.
Staff recommends initiating ballot proceedings on Webster Street. (It should be noted that similar discussions are occurring with Park Street Business Association but any recommended action for Park Street is not anticipated to come forward for at least another year.)
DISCUSSION
To conduct the balloting of property owners for an assessment increase, the City is required to follow a prescribed legal process. In this step, the City Council adopts a resolution to initiate proceedings to increase assessments (and to consolidate Zones 2 and 3 into a Zone 8) and to file the engineer's report. This step also includes adopting another resolution preliminarily approving the annual report, declaring the intention to levy and collect assessments for FY14-15, and providing notice of a public hearing on July 15, 2014. The latter resolution is required to be published at least once in a local paper with a minimum of ten days between the first publication of the City's resolution and the public hearing.
With adoption of these resolutions, property owners in the proposed Zone 8 will be balloted by mail, postmarked no later than May 30. On July 15, the City Council will hold a hearing to tally the ballots and consider approving assessments for FY14-15. Unless there is a majority protest, the proposal to increase assessments on Webster Street may proceed and the City Council may approve increased assessments. If there is a majority protest, then the proposed assessment increase will have failed and the flat assessments for Zones 2 and 3, which will be considered for approval on June 17, will remain in effect. To make the County's tax roll, assessments must be submitted by early August.
The Engineer's 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 report includes changed boundaries, special versus general benefit analysis, methodology for assessments, and the assessments themselves. The report includes identifying boundaries, analyzing special versus general benefits, the methodology for assessments, and the assessments themselves. The report provides a maximum budget, which roughly doubles assessments over six years, and a FY14-15 budget, which shows the first year's overall increase of approximately 25%, when compared to the total assessments in FY13-14.
FINANCIAL IMPACT
The direct costs of enhanced maintenance is funded primarily through assessments. Should the balloting succeed, the budget for this zone will increase by $8,846 (from $35,381 to $44,227). The General Fund (Fund 001) is scheduled to contribute $3,167 for Webster Street in FY14-15. This contribution is required to cover the general benefit portion of the improvements.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action does not affect the Municipal Code.
ENVIRONMENTAL REVIEW
In accordance with the California Environmental Quality Act (CEQA), this project is Categorically Exempt under the CEQA Guidelines Section 15301, Maintenance of Existing Facilities.
RECOMMENDATION
Adopt a resolution to initiate proceedings for an increase in assessments, consolidate zones and file an Engineer's Report, and a resolution preliminarily approving the annual report declaring the intention to order the levy and collection of assessments for District No. 84-2, the proposed Zone 8 (Webster Street) and providing notice of a public hearing on July 15, 2014.
Respectfully submitted,
Robert G. Haun, Public Works Director
By,
Liam Garland, Administrative Services Coordinator
Financial Impact section reviewed,
Fred Marsh, Finance Director
Exhibit:
1. Engineer's Report