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SUMMARY: Public Hearing to Determine the Election Results For or Against a Proposed Assessment Increase for the Island City Landscape and Lighting District 84-2, Zone 4 and Adoption of a Resolution Imposing the Appropriate Assessment in Light of the Election Results
Public Hearing to Consider Adoption of Resolution Confirming the Ballot Results to Determine Whether a Majority Protest Exists in the Proceedings to Increase Assessments in Island City Landscape and Lighting District 84-2, Zone 4 (Park Street); and Adoption of Resolution Confirming the Ballot Results and Providing for No Majority Protest and the Levy of an Annual Assessment in Island City Landscape and Lighting District 84-2, Zone 4 (Park Street). (Public Works 275)
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To: Honorable Mayor and Members of the City Council
From: Elizabeth D. Warmerdam, Interim City Manager
Re: Public Hearing to Consider Adoption of Resolution Confirming the Ballot Results to Determine Whether a Majority Protest Exists in the Proceedings to Increase Assessments in Island City Landscape and Lighting District 84-2, Zone 4 (Park Street); and Adoption of Resolution Confirming the Ballot Results and Providing for No Majority Protest and the Levy of an Annual Assessment in Island City Landscape and Lighting District 84-2, Zone 4 (Park Street)
BACKGROUND
The Island City Landscaping and Lighting Maintenance District No. 84-2 (District) began in 1984. Zone 4 of the District covers Park Street from the Park Street Bridge to San Jose Avenue, including some adjacent streets. District assessments in this zone fund enhanced maintenance of the sidewalks, litter cans, and landscaping. These assessments have been unchanged since the early 1990s. Consequently, as costs have increased, the level of maintenance decreased.
In 2013, staff began discussions with the Park Street Business Association (PSBA) to increase assessments to fund improved maintenance. PSBA’s Board of Directors unanimously approved a proposal to double property owners' assessments over several years and include cost-of-living increases thereafter. Increased assessments would fund better sidewalk cleaning, more thorough maintenance of the public litter cans, more frequent tree pruning, and healthier reserves.
On February 4, 2014, the City Council awarded a contract to conduct the analysis, balloting, and reporting required to increase assessments in Zone 4 for Park Street. This analysis is complicated because any assessment increase triggers Proposition 218, which was passed after the District's founding. Proposition 218's "special benefit" analysis requires a parcel-by-parcel review of land use and benefits, rather than the previous analysis which was exclusively based on the parcel's acreage and frontage. The analysis also showed that some parcels in the District have not been assessed for some time and, additionally, some parcels receive benefit but are not assessed. State law mandates that any property that receives the special benefit must also be assessed. This balloting process corrects assessments to include those parcels receiving benefit but not yet assessed.
As a result of these changes, the next year's average increase per property owner on Park Street is approximately 50%, as PSBA proposed. However, due to the special benefit analysis, the increase in each individual property owner's assessment will vary dramatically and, in some cases, decrease.
City staff shared the results of the analysis with the PSBA Board of Directors, who recommended proceeding with balloting of the property owners. PSBA and Public Works held a property owners' meeting on April 20, 2015, to fully inform property owners and answer questions. On May 19, 2015, the City Council initiated proceedings for increased assessments on Park Street in Zone 4.
DISCUSSION
Ballots were mailed to property owners of record, postmarked no later than May 22, 2015. Property owners can mail in their ballot or hand-deliver the ballot to the City Clerk as late as the close of tonight's public hearing. After the public hearing closes, the City Clerk will tabulate the ballots. Ballots are weighted based on the amount of the property owner's assessment. After tabulating the ballots, the City Clerk will share the results with the City Council. Public Works staff will then propose adoption of a resolution that confirms the balloting results.
FINANCIAL IMPACT
The direct costs of enhanced maintenance is funded primarily through assessments. If the balloting succeeds, the budget for this zone will increase by $78,670 (from $60,313 to $138,984) by FY17-18. The General Fund (Fund 001) is scheduled to contribute $4,698 for Park Street in FY15-16. This contribution is required to cover the general benefit portion of the improvements.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action does not affect the Municipal Code.
ENVIRONMENTAL REVIEW
In accordance with the California Environmental Quality Act, this project is categorically exempt under Guidelines Section 15301, Maintenance of Existing Facilities.
RECOMMENDATION
Public hearing to consider adoption of resolution confirming the ballot results to determine whether a majority protest exists in the proceedings to increase assessments in Island City Landscape and Lighting District 84-2, Zone 4 (Park Street); and adoption of resolution confirming the ballot results and providing for no majority protest and the levy of an annual assessment in Island City Landscape and Lighting District 84-2, Zone 4 (Park Street).
Respectfully submitted,
Liam Garland, Acting Public Works Director
By,
Liz Acord, Management Analyst
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibit:
1. Engineer’s Report 84-2 Zone 4