Title
Introduction of Ordinance Amending the Alameda Municipal Code by Amending Subsection 3-70.5 (Establishment of a Community Facilities District to Finance Certain Services) of Section 3-70 (Special Tax Financing Improvement Code), of Division I (General Provisions), of Article IV (Special Tax Financing), of Chapter III (Finance and Taxation) to Allow the Financing of Additional Services, including Transportation Services and Programs. (Base Reuse 858)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Introduction of Ordinance Amending the Alameda Municipal Code by Amending Subsection 3-70.5 (Establishment of a Community Facilities District to Finance Certain Services) of Section 3-70 (Special tax Financing Improvement Code), of Division I (General Provisions), of Article IV (Special Tax Financing), of Chapter III (Finance and Taxation) to Allow the Financing of Additional Services, including Transportation Services and Programs
BACKGROUND
On June 16, 2015, the City Council approved the Development Plan, and Disposition and Development Agreement (DDA) between the City of Alameda and the developer, Alameda Point Partners (APP), for the 68-acre Site A development, which is the first major public/private development at Alameda Point since the base closed in 1997. The DDA for the Site A development requires APP to invest in over $103 million in public infrastructure and amenities and provide annual financing of municipal services and transportation services and programs consistent with the approved Development Plan and Site A Transportation Demand Management (TDM) Compliance Strategy in compliance with the Alameda Point TDM Plan.
City staff and APP are proposing the formation of a Community Facilities District (CFD) under the City of Alameda’s Special Tax Financing Improvement Code [Alameda Municipal Code (AMC) Section 3-70] to finance annual municipal services and TDM services and programs associated with the Site A project in order to implement Section 3.1(c) of the DDA. However, the City’s current municipal code authority for establishing CFDs does not explicitly allow for CFDs to finance TDM and transportation services, as well as levee maintenance and shoreline protection. As a result, staff is recommending an amendment to the AMC that would allow CFDs in the City to explicitly finance various municipal services, including transportation services and TDM programs as described in greater detail below.
The City has established several CFDs in the past to finance various public improvements and municipal services, most recently for the Alameda Landing Area. A CFD allows for the annual levy of a special tax on property in a designated area to pay costs of administering the CFD, and the payment of costs of services or public facilities the CFD is authorized to finance (as well as the payment of debt service on bonds issued for the CFD to finance public facilities). There is no impact on the General Fund or on owners of property outside of the CFD boundaries as a consequence of the establishment of a CFD.
DISCUSSION
The current AMC Section 3-70.5 Establishment of a Community Facilities District to Finance Certain Services allows the financing any one (1) or more municipal services with an area, including, but not limited to the following:
a. Police protection services;
b. Fire protection and suppression services, and ambulance and paramedic services;
c. Recreation program services, library services and the operation and maintenance of parks, parkways, open space, and museums and cultural facilities;
d. Flood and storm protection services, including but not limited to, the operation and maintenance of storm drainage systems;
e. Maintenance of sanitary sewer system facilities and storm drainage facilities of the city;
f. Any other municipal service which the City is authorized by law to provide and
g. Performance by employees of functions, operations, maintenance and repair activities.
As presented in the attached ordinance, staff is recommending the following additions to the AMP Sub-Section 3.70.5:
1) Street maintenance and resurfacing services;
2) Flood and storm protection services, including the construction and maintenance of levees and shoreline stabilization improvements, including bulkheads; and
3) Transportation demand management services and expenses, including but not limited to:
a. public or private bus operations, including purchase of bus vehicles;
b. purchase and distribution of or contributions towards bus and other transportation passes (including Alameda-Contra Costa Transit Districts’ EasyPass and “BikeLink”cards, “Clipper cards” or the equivalent of any of the foregoing);
c. transportation demand management service staffing and other administrative costs;
d. ride-share subsidies or contracts;
e. website maintenance;
f. safety educational/marketing materials;
g. bike/pedestrian facilities;
h. bike share station installation, equipment and operations;
i. monitoring contracts and surveys; and
j. parking management.
Staff recommends these amendments to the City’s CFD ordinance to allow the financing of municipal services that will be needed for the Site A development, including transportation services and program. Specifically, these changes will facilitate the financing of municipal and transportation services and programs by means of a new CFD associated with the Site A project.
FINANCIAL IMPACT
There is no financial impact to the General Fund or the Base Reuse Fund to adopt an ordinance amending Sub-section 3.70.5 of the Alameda Municipal Code (Establishment of a Community Facilities District to Finance Certain Services) to add services, including transportation services and programs. In fact, these changes assist in the implementation of the fiscal neutrality policy for Alameda Point and help ensure that there are dedicated annual sources of funds for municipal services and transportation and TDM services and programs for new development at Alameda Point.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
Subsection 3-70.5 (Establishment of a Community Facilities District to Finance Certain Services) of Section 3-70 (Special tax Financing Improvement Code), of Division I (General Provisions), of Article IV (Special Tax Financing), of Chapter III (Finance and Taxation)
ENVIRONMENT REVIEW
The proposed amendment to the Alameda Municipal Code regarding additional municipal services to be financed are categorically exempt under California Environmental Quality Act (CEQA)pursuant to CEQA Guidelines section 15378(b)(4).
RECOMMENDATION
Introduce Ordinance amending the Alameda Municipal Code by amending Subsection 3-70.5 (Establishment of a Community Facilities District to Finance Certain Services) of Section 3-70 (Special tax Financing Improvement Code), of Division I (General Provisions), of Article IV (Special Tax Financing), of Chapter III (Finance and Taxation) to allow the financing of additional services, including transportation services and programs.
Respectfully submitted,
Jennifer Ott, Base Reuse Director
By,
Michelle Giles, Redevelopment Project Manager