Title
Public Hearing to Consider Adoption of Resolution Ordering Levy of Assessments, Island City Landscaping and Lighting District 84-2, Zones 1, 4, 5, 6, and 8. (Public Works 27041530, 27141530, 27241530, 27341530, 27541530)
Body
To: Honorable Mayor and Members of the City Council
From: Adam W. Politzer, Interim City Manager
EXECUTIVE SUMMARY
Each year, the City Council levies special assessments in connection with the Island City Landscaping and Lighting District 84-2 (District). On May 5, 2026, the City of Alameda (City) Council approved the annual Engineer’s Report (Report) and adopted a resolution stating its intention to levy assessments for Fiscal Year (FY) 2026-27. Tonight, City Council will hold a public hearing on the proposed assessment for FY 2026-27, as described in the Report and preliminarily approved by City Council. After tonight’s public hearing, staff recommends City Council adopt the resolution to levy the assessment. Note that action related to the dissolution of Zone 7 of the District is being presented to City Council as a separate agenda item.
BACKGROUND
The District was established in 1984 pursuant to the Landscape & Lighting Act of 1972 (Streets & Highways Code Sections 22500 et seq.). It currently is comprised of six zones, each of which covers a distinct geographic area. The purpose of this special assessment District is to provide enhanced maintenance in the public areas of the District's six zones (1, 4, 5, 6, 7, & 8) throughout the City. Parcels in each zone are assessed only for the costs associated with improvements in that zone. In 2014, Zones 2 and 3 conducted a property owner balloting process to combine into one zone (Zone 8) and increase assessments. In 2019, Zone 4 conducted a property owner balloting to increase assessments. Since these successful increases in assessments, Public Works staff worked with the zones to increase services accordingly.
In 2016, the City started work with its consultant specializing in assessment districts 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 outlined below.
At its March 3, 2026 and May 5, 2026 meetings, City Council took the initial steps to levy the assessments for FY 2026-27 and set a public hearing on the proposed assessment for tonight’s meeting. On May 5, 2026, City Council also approved a separate item relating to the dissolution of Zone 7, the final action related to the dissolution of Zone 7 of the District is being presented to City Council as a separate agenda item this evening.
DISCUSSION
The proposed assessment is more completely described in the Report that was prepared by NBS, a consulting firm, submitted by the City Engineer, and preliminarily approved by City Council. Maps of the five zones are attached as Exhibit 1 and the Report is attached as Exhibit 2. The Report provides an estimate of FY 2026-27 costs for each zone. The zones 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 projected from this zone’s assessments is sufficient to cover the maintenance budget and reserve. For FY 2026-27, 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. Based on previous approval by the property owners, an automatic Consumer Price Index (CPI) increase up to 3% annually is applied to the assessment. The revenues projected from this zone’s assessments, including a Bay Area CPI increase of 2.4769%, is sufficient to fund the proposed FY 2026-27 maintenance budget and reserve.
Zone 5 - Harbor Bay Business Park: This zone funds irrigation, landscape and janitorial maintenance within the Harbor Bay Business Park (HBBP), including tree trimming, sidewalk and pathway repairs, streetlight and bus shuttle shelter maintenance, and utilities. Based on previous approval by the property owners, an automatic CPI increase is applied to the assessment. The revenues projected from this zone’s assessments, including a CPI increase of 2.4769%, are sufficient to fund the proposed FY 2026-27 maintenance budget and reserve. The proposed budget also includes capital investment for additional sidewalk and pathway replacement, painting, and shuttle stop improvements totaling approximately $357,000.
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 2026-27, the revenue projected to be received through the assessments from this zone, including a CPI increase of 2.4769%, and accumulated fund balance are sufficient to fund the proposed maintenance budget and reserve. The budget also includes capital investment in landscaping improvements and enhanced public seating facilities, and well as funding for survey work associated with future boardwalk replacement.
Zone 7 - 1100 and 1200 blocks of Bay Street: Zone 7 will be considered as a separate item on tonight’s agenda.
Zone 8 - Webster Street from Central Avenue to Atlantic Avenue: This zone funds maintenance on Webster Street. Based on previous approval by the property owners, an automatic CPI increase is applied to the assessment. The revenues projected to be received through the assessments from this zone, including a CPI increase of 2.4769%, are sufficient to fund the proposed FY 2026-27 maintenance budget and reserve.
ALTERNATIVES
• Approve levy of the assessment for the coming year as presented in this Report.
• Approve the levy of the assessment for the coming year at a different rate below the allowable maximum assessment. If reduced, staff may need to return to City Council for a budget amendment to draw from District reserves, if feasible, or reduce service levels.
• Do not proceed with a levy of the assessment 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 staff will need to return to City Council for a budget amendment to further draw from District reserves or another funding source or reduce service levels.
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 Zones are charged their proportional share of approximately $44,000 (to be confirmed by the City’s Finance Department as part of the biennial budget process) for fees and expenses related to the annual levy process for the entire District, which is then paid from the Assessment District Administration Fund (Fund 276).
In addition, the City funds the general benefit portions of the maintenance in the zones through the program budgets included in the table below. General Fund contributions are considered by City Council as part of the City budget process. Within Zone 4, the Engineer 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 general benefit amount of $7,739.34 for the Zone’s maintenance activities cannot be funded via property owners’ assessments. Funding for this portion will come from the General Fund. Within Zone 8, the Engineer has also identified a general benefit of $3,191.33 for the zone’s maintenance activities which cannot be funded via property owners’ assessments. The funding for this portion will come from the General Fund. Lastly, Zone 5 contains a large stretch of shoreline park, including recreational pathways and landscaping areas. The maintenance costs for the shoreline park facilities within Zone 5 are shared between the Zone and the Recreation and Parks Department. The amount of $15,000 is included in the Recreation and Park Department budget for FY 2026-27 and contributes to the cost of maintaining the recreational pathways and park landscaping.
|
Fund/Program |
Purpose |
Amount |
|
Public Works Administration (31041500) |
General benefit contribution on Park Street in Zone 4 |
$7,739.34 |
|
Public Works Administration (31041500) |
General benefit contribution on Webster Street in Zone 8 |
$3,191.33 |
|
Alameda Recreation and Park Maintenance (10051450) |
Maintaining the shoreline park along HBBP within Zone 5 |
$15,000 |
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
In accordance with the California Environmental Quality Act (CEQA), this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Section 15301 (Existing Facilities).
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
Hold a public hearing to consider adoption of a resolution ordering the levy of assessments, District, Zones 1, 4, 5, 6, and 8.
Respectfully submitted,
Erin Smith, Public Works Director
By,
Emily Antenen, Management Analyst
Financial Impact section reviewed,
Ross McCarthy, Finance Director
Exhibits:
1. Zones 1, 4, 5, 6 and 8 Maps
2. Engineer’s Report