Title
Adoption of Resolution Approving the Engineer’s Report Declaring the City of Alameda's Intention to Order the Levy and Collection of Assessments and Providing for Notice of Public Hearing on June 17, 2025 - Maintenance Assessment District 01-01 (Marina Cove).
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). (Public Works 27741530)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
To levy next fiscal year's assessments for the Marina Cove Maintenance Assessment District 01-01 (District), the City of Alameda (City) is required to follow a prescribed legal process to prepare the annual Engineer’s Report (Report). This annual process began in March with the City Council’s appointment of an engineer and an attorney for the assessment district. Staff is now bringing a draft Report outlining the proposed budgets and assessments for the coming year for City Council approval as well as approval to set a public hearing for June 17, 2025. After that public hearing, City Council will consider approving the assessment for the following year.
BACKGROUND
On June 7, 2002, City Council established the District, whose purpose is to provide maintenance for the sidewalks, landscaping, and City Park in the Marina Cove development (see Exhibit 1 for map).
To levy the next fiscal year's assessments, the City is required to follow a prescribed legal process. This annual process began on March 4, 2025, with the City Council's appointment of an Engineer-of-Work (Engineer) and an Attorney-of-Record (Attorney) for the District. Staff is now seeking City Council’s approval of the draft Report detailing the proposed budget and assessments for the coming year and setting a public hearing date of June 17, 2025. After the hearing, City Council will consider approving the assessments for the following year.
The resolution is required to be published once in a local paper with a minimum of 10 days between the first notice of publication of the resolution and the public hearing.
DISCUSSION
District funds provide for the maintenance of street trees, medians, sidewalks, pathways, irrigation, lighting, associated utilities and administration of the District. The Report (Exhibit 2) 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 includes an estimated annual budget to maintain the public improvements within the district.
When the District was established, an automatic annual Consumer Price Index (CPI) increase was pre-approved. Accordingly, for the coming year the assessments for the District are set to increase by 2.68896% or $3,549.18, which is the CPI for the Bay Area for the year ending February 2024. This would be the maximum assessment and would bring the District’s Fiscal Year (FY) 2025-26 levy total to $135,539.39. This equates to an assessment of $0.4384 per lot square foot.
The purpose of the pre-approved CPI increase is to allow assessments to keep up with the rising costs of providing services within the District. To provide services for the coming year, the FY 2025-26 budget for the District proposes utilization of the maximum assessment. Previously, the District was paying for the full cost of park maintenance for the Marina Cove Park. In 2023, staff completed a Fiscal Impact Analysis to ensure Marina Cove Park maintenance costs are correctly shared between this District and the Community Facilities District (CFD 14-1) that was formed in 2014 for the adjacent Marina Cove II/Marina Shores development. Such sharing of costs ultimately reduced the budget for this District and allowed for operating and capital reserves to begin to be re-established.
The City Council has the option of approving the levy with the entire automatic CPI increase or some percentage below the maximum allowed 2.68896%. Approving below the maximum allowed would not change the annual calculation of the maximum possible assessment, and in future years City Council could elect to set assessments at the maximum level. Forgoing or reducing the allowable increase would only impact this coming fiscal year’s assessment and would reduce the funds available for park maintenance and other City services. A significant portion of the District’s estimated reserve fund balance was utilized in FY 2023-24, leaving a remainder of $76,035.98 as of June 30, 2025. In FY 2025-26, the revenue received through the assessments from this zone is sufficient to fund 100% of the proposed maintenance budget and administration costs with approximately $15,000 put aside into the operating reserve. 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
Staff proposes that City Council adopt a resolution to approve the Report as presented and set the regular City Council meeting of June 17, 2025, as the date for the public hearing.
ALTERNATIVES
• Approve proceeding with levying assessments for the coming year at the allowable maximum assessment.
• Approve proceeding with levying assessments for the coming year at a rate below the allowable maximum assessment. The potential impact on the District is that the level of service will need to be reduced to bring the budget in line with the available assessment and/or General Fund supplement would be needed to keep the current level of service. Further use of reserves may impact the near-term ability to complete capital improvements.
• 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 will be reduced and/or another funding source required.
FINANCIAL IMPACT
The District was created to maintain public improvements associated with the Marina Cove development. Direct costs associated with these services, such as landscape maintenance, are paid by the District. Funds not expended in a fiscal year remain within the assessment district (Fund 277) and may be used for future expenses.
The cost to prepare the Engineer’s Report, levy the assessment and have the assessment collected on the Alameda County tax roll is estimated to be approximately $46,000 in FY 2025-26. These figures are subject to change, based on confirmation by the Finance Department, and do not impact the overall levy process and staff recommendation. The Marina Cove Maintenance Assessment District Fund (277) has sufficient balance to support this work.
There is no impact to the General Fund, however, any reduction in the maximum assessment would require funding from the General Fund to maintain services in the District.
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 CEQA, this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Section 15301 (Existing Facilities).
CLIMATE IMPACT
The work 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 approving the Engineer’s report declaring the City of Alameda’s intention to order the levy and collection of assessments and providing for notice of public hearing on June 17, 2025, Maintenance Assessment District 01-01 (Marina Cove).
Respectfully submitted,
Erin Smith, Public Works Director
By,
Emily Antenen, Management Analyst
Financial Impact section reviewed,
Ross McCarthy, Acting Finance Director
Exhibits:
1. Maintenance Assessment District 01-01 Map
2. Engineer's Report