Title
Public Hearing to Consider Adoption of Resolution Approving Ordering the 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: Jennifer Ott, 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 7, 2024, City Council approved the annual Engineer’s Report (Report) and adopted a resolution stating its intention to levy assessments for Fiscal Year (FY) 2024-25. Tonight, City Council will hold a public hearing on the proposed assessment for FY 2024-25, 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 this year, the final action for Zone 7 of the District is being presented as a separate item from the other zones within the District.
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 of Alameda (City). In 2014, Zones 2 and 3 conducted a property owner balloting process to combine into one zone (Zone 8). Parcels in each zone are assessed only for the costs associated with improvements in that zone.
At its March 5, 2024 and May 7, 2024 meetings, City Council took the initial steps to levy the assessments for FY 2024-25, and set a public hearing on the proposed assessment for tonight’s meeting. On May 7, 2024 City Council also approved a separate item with the same aforementioned steps for Zone 7, thus Zone 7 will be presented as a separate item this year.
DISCUSSION
The proposed assessment is more completely described in a 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 2024-25 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 received through the assessments for this zone is sufficient to cover the maintenance budget. For FY 2024-25 the property assessments will mostly 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 a 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. Based on previous approval by the property owners, an automatic Consumer Price Index (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.
Within Zone 4, 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 $7,682.68 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 (HBBPA), 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 Fiscal Year 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. It is projected that the revenue received through the assessment for this zone is sufficient to cover the maintenance budget, and required operating reserve, and allow for 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. The revenue received through the assessments from this zone and any accumulated fund balance is sufficient to fund 100% of the proposed maintenance budget. 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 7 - 1100 and 1200 blocks of Bay Street: Zone 7 will be considered as a separate item.
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. 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.
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 that is provided from 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 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 which 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.
(b) 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.
City Council has the option of approving the levy without the full automatic CPI increase for the applicable zones, or instead lower the increase to a percentage below the maximum allowed (2.3661% for Zones 4, 5, 6, and 8). Doing so would not change the calculation of the maximum possible assessment, and in future years City Council could elect to set assessments at the maximum level. Instead, forgoing or reducing the allowable increase would only impact this coming fiscal year’s assessment.
ALTERNATIVES
• Approve levy of the assessment for the coming year at the staff recommended assessments.
• 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 further draw from District reserves accordingly or another funding source 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 may 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 $42,000 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 portions of the maintenance in the zones through the following program budgets (see table below). These budgets are subject to City Council appropriations within the operating budget for each department.
|
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 HBP 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
Hold a public hearing to consider adoption of a resolution ordering the levy of assessments, Island City Landscaping and Lighting District 84-2, 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