Title
Adoption of Resolution Preliminarily Approving the Annual Report, Declaring the City's Intention to Order the Levy and Collection of Assessments and Providing for Notice of Public Hearing on June 4, 2019 Regarding Possible Assessment Increases - Island City Landscaping and Lighting District 84-2 (Various Locations throughout the City). (Public Works 275)
Body
To: Honorable Mayor and Members of the City Council
From: Amy Wooldridge, Interim City Manager
EXECUTIVE SUMMARY
In 1984, the City Council established the Island City Landscaping and Lighting District 84-2 (District). The purpose of this special assessment District is to provide enhanced maintenance in the public areas of the District’s six zones throughout the City of Alameda (City).
To levy next fiscal year's assessments, the City is required to follow a prescribed legal process to prepare the annual Engineer’s Report (Report). This annual process began in February with the City Council’s appointment of an engineer and an attorney for the assessment district. Then, a draft Report outlining the proposed budgets and assessments for the coming year was prepared and is now brought before the City Council for preliminary approval. Council is also being asked to set a public hearing for June regarding a possible increase in assessments in a zone. After the public hearing, the City Council will consider approving the assessment for the following year.
BACKGROUND
On June 7, 1984, the City Council established the District. The purpose of this assessment District is to provide enhanced maintenance in certain zones throughout the City. This work, which varies among the zones, includes regular litter collection, landscape maintenance of the medians and planters, and sidewalk cleaning.
To levy next fiscal year's assessments, the City is required to follow a prescribed legal process. This annual process began on February 19, 2019 with the City Council’s appointment of an Engineer-of-Work and an Attorney-of-Record for the assessment District. Staff now seeks Council’s preliminary approval of the draft Report outlining the proposed budgets and assessments for the coming year and setting a public hearing date of June 4, 2019 regarding a possible increase in assessments in a zone. After the public hearing, the City Council will consider approving the assessments for the following year.
The resolution is required to be published at least once in a local paper with a minimum of ten days between the first publication of the City's resolution and the public hearing.
DISCUSSION
The Report 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 annual budget to provide enhanced maintenance within six zones throughout the City. Maps of the six zones are attached as Exhibit 1 and the Report is attached as Exhibit 2. The Report provides an estimate of Fiscal Year (FY) 2019-20 costs for each zone. The zones for enhanced maintenance 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 2019-20, the property assessments will mostly 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.
At the direction of the Zone 4 business association board (Downtown Alameda Business Association (DABA)), the District seeks to initiate a balloting processes to increase assessments that would fund increased maintenance to daily service levels including improved sidewalk cleaning and more thorough maintenance of the public litter cans, and capital improvements such as landscape upgrades. This year’s balloting effort follows balloting in 2015 that did not pass and resulted in existing assessments staying in place for the years following. If the City Council approves the initiation of this process, property owners will have the opportunity to vote to increase assessments by mailed ballot and a public hearing will be scheduled for June 4, 2019 to determine the results of the balloting. The initiation of these proceedings is being heard in a separate report on tonight’s agenda.
This resolution will keep the existing assessment in place if the balloting effort to increase the assessment fails. As in FY 2017-18 and 2018-19, the existing assessment is not sufficient to cover the cost of service, so should the balloting fail, services will be reduced accordingly.
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 2019-20 maintenance budget. For FY 2019-20, the proposed property assessment includes an annual CPI increase of 3.52%.
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 3.52%.
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 past year, staff worked with the Zone 7 representatives to begin assessing the condition of the trees and establish a 5-year capital spending plan. Over the course of the next Fiscal Year, staff will continue to work with the Zone 7 representatives to refine the long-term plan for the trees.
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. Previously, the assessments in the zones had remained unchanged since the early 1990s. As a result of the successful balloting process, the FY 2018-19 is the fifth and final year of assessment increase in this zone that culminates in doubled assessments over five years. Following the completion of this five-year increase, assessments increase automatically by annual CPI, for FY 2019-20, the proposed budget for this district includes an annual CPI increase of 3.52%.
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 $2,533 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 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:
|
Fund/Program |
Purpose |
Amount |
|
General Fund (PW) |
General Benefit on Webster St. in Zone 8 |
$2,533 |
|
Measure B |
Young tree care and training within Zone 4 |
$25,500 |
|
General Fund (PW Street trees/medians maintenance) |
Landscape maintenance for Harbor Bay Parkway between Maitland Dr. and Doolittle Dr. |
$10,099 |
|
Golf Fund |
Landscape maintenance for Harbor Bay Parkway between Maitland Dr. and Doolittle Dr. |
$4,974 |
|
General Fund (Parks Maintenance) |
Maintaining the shoreline park along HBP within Zone 5 |
$15,000 |
|
General Fund (PW Street Trees and Median Maintenance) |
Street tree maintenance for Zone 7 |
$3,000 |
Approximately $101,500 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 Alameda Municipal Code.
ENVIRONMENTAL REVIEW
In accordance with the California Environmental Quality Act (CEQA), this project is Categorically Exempt pursuant to CEQA Guidelines section 15301, Maintenance of Existing Facilities.
RECOMMENDATION
Adopt a resolution preliminarily approving the annual report, declaring the City's intention to order the levy and collection of assessments and providing for notice of public hearing on June 4, 2019 regarding a possible increase in assessments in a zone - Island City Landscape and Lighting District 84-2.
Respectfully submitted,
Liam Garland, Public Works Director
By,
Adrian Liu, Public Works Management Analyst
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. Zones 1 through 8 Maps
2. Engineer's Report