Title
Public Hearing to Consider Adoption of Resolution Approving the Engineer's Report, Confirming Diagram and Assessment, and Ordering the Levy of Assessments, Island City Landscaping and Lighting District 84-2, All Zones. (Public Works 275)
Body
To: Honorable Mayor and Members of the City Council
From: Elizabeth D. Warmerdam, Acting City Manager
Re: Public Hearing to Consider Adoption of Resolution Approving the Engineer's Report, Confirming Diagram and Assessment, and Ordering the Levy of Assessments, Island City Landscaping and Lighting District 84-2, All Zones
BACKGROUND
On February 20, 2018, in accordance with the Landscape and Lighting Act of 1972, the City Council appointed the City Engineer and the City Attorney for the Landscaping and Lighting Assessment District (LLAD) 84-2 and authorized the preparation of the Engineer's Report. On May 15, 2018, the City Council preliminarily approved the Engineer's Report, declared an intention to order the levy and collection of the assessments, and set a public hearing for June 19, 2018.
DISCUSSION
The Engineer's Report was prepared by NBS, a consultant specializing in LLADs, in accordance with Section 22565 et seq. of the California Streets and Highways Code. The report provides an annual budget to provide enhanced maintenance of landscaping and lighting improvements within Zones 1 through 8 of LLAD 84-2 not typically performed by the City. The Engineer's Report provides an estimate of cost for each of the six zones to be addressed for Fiscal Year (FY) 2018-19. Maps of the six zones (1, 4, 5, 6, 7 and 8) are attached. The zones and enhanced maintenance work 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 2018-19, the property assessments will remain unchanged from the previous year's assessment.
Zone 4 - Park Street from the Park Street Bridge to San Jose Avenue, including areas of Webb Avenue, Santa Clara Avenue, Lincoln Avenue, and Central 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 2015, at the direction of the Zone 4 business association board Downtown Alameda Business Association (DABA), Zone 4 conducted a property owner balloting process to increase assessments. The assessments in the zone have remained unchanged since the early 1990s. Increased assessments would fund improved sidewalk cleaning, more thorough maintenance of the public litter cans, and a healthier reserve. The results of the balloting were heard at the July 7, 2015 City Council meeting. The balloting did not pass and existing assessments stayed in place for the district. For FY 2018-19, the assessments will remain unchanged from the previous year’s assessments.
This year, the total cost of services for the zone will exceed the total assessment. To continue providing the existing level of service, the FY 2018-19 budget requires the use of the remaining reserves for the zone to partially cover the cost of services. On May 15, 2018 staff recommended covering the remainder of the costs with a one-time contribution from the General Fund (001) and the Parking Fund (224) for a total of $7,421. At the time of this report, DABA is requesting that instead of a one-time contribution the City reduce services to align revenue and expense in this zone. As DABA considers proceeding with another balloting to increase assessments, they feel the reduction in services will be beneficial in communicating with Zone 4 property owners about the need for increased assessments. Should Council approve this request, the Engineer’s Report will be approved as amended to reflect this change.
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. The budget for this zone is developed in conjunction with the HBBP Association. Based on previous approval by the property owners, an automatic Consumer Price Index (CPI) increase is applied to the assessment. The revenues received through the assessments from this zone are sufficient to fund the proposed FY 2018-19 maintenance budget. For FY 2018-19, the proposed property assessment includes an annual CPI increase of 3.56%.
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 3.56%.
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 Bay Street. Currently, the revenues received through assessments from this zone cover maintenance costs. For FY 2016-17, the property owners requested a reduction in assessments to $100 per property (reduced from the previous assessment of $150 per property). Property owners request that this reduction stay in place for the coming fiscal year. Staff recommends assessments remain at $100 per property. Over the course of the next Fiscal Year, staff will work with Zone 7 representatives to assess the mid to long term health of the trees and plan for use of the reserve and potential assessment adjustments in the coming years.
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 assessments in the zones had remained unchanged since the early 1990s. As a result of this successful balloting process, the zone is in the fifth and final year of its assessment increase that will culminate in doubled assessments over five years. Following the completion of this five-year increase, assessments will increase automatically by annual CPI.
Within Zone 8 the Engineer of Record has also identified 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 $2,876 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 Engineer’s Report was updated to show the reserves and fund balance for each zone and the proposed capital improvement plan for each zone.
FINANCIAL IMPACT
Direct costs associated with this work, such as landscape maintenance, are paid by the assessment district, and apportioned to each zone. In addition, the City funds portions of the zones through the following program budgets: $2,876 from Public Works Street Tree and Median Maintenance (001-4255) for the Zone 8 general benefit contribution; $25,500 from Measure B (Fund 215) reserves for young tree care and training within Zone 4; a one-time equal contribution from the General Fund (001) and City Parking Fund (224) of $7,421; $15,073 from Street Tree and Median Maintenance (001-4255) and Golf Administration (280.5-5301), for the landscape maintenance for Harbor Bay Parkway (HBP) between Maitland Drive and Doolittle Drive; $15,000 from Alameda Recreation & Parks Park Maintenance (001-51210) for maintaining the shoreline park along HBP within Zone 5; and $3,000 from Street Tree and Median Maintenance (001-4255) for street tree maintenance for Zone 7. Approximately $84,000 in administrative costs is shared by each zone in proportion to the value of their annual assessments (Fund 275). These costs are included within the operating budget for each department.
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 approving the Engineer's Report, confirming diagram and assessment, and ordering the levy of assessments, Island City LLAD 84-2, all zones.
Respectfully submitted,
Liam Garland, Public Works Director
By,
Liz Acord, Public Works Coordinator
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. Zones 1 through 8 Maps
2. Engineer's Report