Title
Public Hearing to Consider Adoption of Resolution Ordering the Levy of Assessments, Maintenance Assessment District 01-1 (Marina Cove). (Public Works 27741530)
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 Maintenance Assessment District 01-01 (District). On May 7, 2024, City Council approved the annual 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 this report and previously preliminarily approved by City Council. After tonight’s public hearing, staff recommends City Council adopt the resolution to levy the assessment.
BACKGROUND
The District was established in 2002 pursuant to the Landscape & Lighting Act of 1972 (Streets & Highways Code Sections 22500 et seq.). The purpose of this District is to provide maintenance for the sidewalks, landscaping, and City of Alameda (City) parks in the Marina Cove development. The map of the assessed properties is shown in Exhibit 1.
At its March 5, 2024 and May 7, 2024 meetings, City Council took the initial required steps to levy the assessments for FY 2024-25, including appointing an engineer-of-work, approving the annual engineer’s report and setting a public hearing on the proposed assessment for tonight’s meeting.
DISCUSSION
District funds provide for the maintenance of street trees, medians, sidewalks, pathways, irrigation, lighting, associated utilities, Marina Cove Park 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 2.3661% or $3,051.75, which is the CPI for the Bay Area for the year ending February 2024.
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 2024-25 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.
City Council has the option of approving the levy without the full automatic CPI increase or otherwise lowering the levy below the maximum allowed. 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. Forgoing or reducing the allowable increase would only impact this coming fiscal year’s assessment.
ALTERNATIVES
• Approve levy of the assessment for FY 2024-25 at the staff recommended assessments.
• Approve levy of the assessment for the coming year at a rate below the allowable maximum assessment. The potential impact on the District is that the level of service may be reduced to bring the budget in line with the available assessment.
• Do not proceed with a levy of the assessment for FY 2024-25. The impact of this option would mean that the City will not be able to collect the assessments for the District and maintenance services would be significantly reduced.
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 administer the assessment district, including full City cost allocation, in FY 2024-25 is $43,486 plus county admin fees of $2,133 and is included within the proposed budget. There is no impact on the General Fund.
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
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
Hold a public hearing to consider adoption of a resolution ordering the levy of assessments, Maintenance Assessment District 01-1 (Marina Cove).
Respectfully submitted,
Erin Smith, Public Works Director
By,
Emily Antenen, Management Analyst
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibits:
1. District Map
2. Engineer’s Report