Title
Adoption of Resolution Preliminarily Approving the Annual Report Declaring the City's Intention to Order the Levy and Collection of Assessments and Providing for Notice of Public Hearing on June 1, 2021 - Island City Landscaping and Lighting District 84-2 (Various Locations). (Public Works 275)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The purpose of the Island City Landscape and Lighting District 84-2 (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 for the District, the City is required to follow a prescribed legal process to prepare the annual Engineer’s Report (Report). This annual process began in February with the City Council’s appointment of an engineer and an attorney for the District. Staff is now presenting a draft Report outlining the proposed budgets and assessments for the coming year for preliminary approval, and approval to set a public hearing for June. After the set public hearing, the City Council will consider approving the assessment for the following year.
BACKGROUND
On June 7, 1984, the 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 next fiscal year's assessments, the City is required to follow a prescribed legal process. This annual process began on February 16, 2021 with the City Council’s appointment of an Engineer-of-Work (Engineer) and an Attorney-of-Record (Attorney) for the District. Staff now seeks the City Council’s preliminary approval of the draft Report outlining the proposed budgets and assessments for the coming year and setting a public hearing date of June 1, 2021. After the public hearing, the 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 ten days between the first publication of the City's resolution and the public hearing.
DISCUSSION
The 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 provides an annual budget to provide enhanced maintenance within six zones throughout the City. Public Works staff works with the stakeholders of the zones to prepare the proposed budget and work plan for the coming year. Maps of the six zones are attached as Exhibit 1, and the Report, attached as Exhibit 2, provides an estimate of Fiscal Year (FY) 2021-22 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 2021-22, 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.
The care of the young trees planted on Park Street as part of the Park Street Streetscape is proposed to be funded by Measure B reserves for the upcoming fiscal year.
In FY 2018-19, at the direction of the Zone 4 business association board (Downtown Alameda Business Association (DABA)), the District 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. Delivery of increased services and establishment of a healthy reserve were completed in the last fiscal year. The revenues received through the assessments from this zone are sufficient to fund the proposed FY 2021-22 maintenance budget. For FY 2021-22 the proposed property assessment includes an annual Consumer Price Index (CPI) increase of 1.567%.
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 $6,023.13 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.
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 FY 2021-22 maintenance budget. For FY 2021-22, the proposed property assessment includes an annual CPI increase of 1.567%.
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. The proposed budget for this district includes an annual CPI increase of 1.567%.
Zone 7 - 1100 and 1200 blocks of Bay Street: This zone was created at the request of the property owners who wanted enhanced maintenance for the elm trees along the 1100 and 1200 blocks of Bay Street. Currently, the revenues received through assessments from this zone cover maintenance costs. In FY 2016-17, the property owners requested a reduction in assessments to $100 per property (reduced from the previous assessment of $150 per property). For the FY 2021-22 levy, property owners have requested no levy take place this year.
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 2021-22 maintenance budget. For FY 2021-22, the proposed budget for this district includes an annual CPI increase of 1.567%.
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 $2,937.18 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. The Report was updated to show the reserves and fund balance for each zone and the proposed capital improvement plan for each zone.
ALTERNATIVES
• Approve proceeding with levying assessments for the coming year.
• 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. The District Island City Maintenance Fund (Fund 275) is charged indirect costs of approximately $10,000 for fees and expenses related to the annual levy process, which is then paid from the Assessment District Administration Fund (Fund 279). In addition, the City funds portions of the zones through the following program budgets (see table below). These costs are included within the operating budget for each department.
|
Fund/Program |
Purpose |
Amount |
|
Public Works Administration (4205310) |
General benefit contribution on Webster St. in Zone 8 |
$ 6,023 |
|
Public Works Administration (4205310) |
General benefit contribution on Webster St. in Zone 4 |
$ 2,938 |
|
Measure B (215) |
For young tree care and training within Zone 4 |
$ 25,500 |
|
Alameda Recreation and Park Maintenance (001-51210) |
Maintaining the shoreline park along HBP within Zone 5 |
$ 15,000 |
|
Street Tree and Median Maintenance (001-4250) |
Street tree maintenance for Zone 7 |
$ 3,000 |
|
Annual Assessment Administration (279) |
Administrative costs proportionally shared by each zone |
$101,500 |
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action does not affect the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
In accordance with the California Environmental Quality Act (CEQA), this project is Categorically Exempt pursuant to CEQA Guidelines Section 15301, Maintenance of Existing Facilities.
CLIMATE IMPACTS
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 preliminarily approving the Annual Report declaring the City's intention to order the levy and collection of assessments and providing for notice of public hearing on June 1, 2021 - Island City Landscaping and Lighting District 84-2 (Various Locations).
CITY MANAGER RECOMMENDATION
The City Manager concurs with the staff recommendation.
Respectfully submitted,
Erin Smith, Public Works Director
By,
Amanda Eberhart, Management Analyst
Financial Impact section reviewed,
Annie To, Finance Director
Exhibits:
1. Zones 1 through 8 Maps
2. Engineer's Report
cc: Eric Levitt, City Manager