Title
Public Hearing to Consider Adoption of Resolution Approving the Engineer's Report, Confirming Diagram and Assessment, and Ordering the Levy of Assessments, Island City Landscaping and Lighting District 84-2, All Zones (Various Locations throughout the City). (Public Works 275)
Body
To: Honorable Mayor and Members of the City Council
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 preliminarily approved by the City Council on April 16, 2019. At that time, a June 4 public hearing date was also set to consider the annual levy and collection of assessments in the District. After the public hearing, the City Council will consider approving the assessments for the following year.
BACKGROUND
On February 19, 2019, in accordance with the Landscape and Lighting Act of 1972, the City Council appointed the City Engineer and the City Attorney for the Landscaping and Lighting Assessment District (LLAD) 84-2 and authorized the preparation of the Engineer's Report. On April 16, 2019, the City Council preliminarily approved the Engineer's Report, declared an intention to order the levy and collection of the assessments, and set a public hearing for June 4, 2019.
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 revenues received through the assessments for this zone are 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.
The assessments in this zone have remained unchanged since the early 1990s. In 2013, staff began discussions with the Downtown Alameda Business Association (DABA) board regarding an assessment increase. In 2014, DABA requested the balloting be postponed to the following year. The balloting occurred the next year and proposed a near doubling of assessments spread over three years. The balloting did not pass, and existing assessments remained unchanged.
At DABA’s request, the City entered into an agreement with NBS in November 2018 to complete the first phase of the process to increase assessments. This first phase involved preparation of parcel data, establishing zone boundaries and services to be funded, and preparation of a findings report. On February 19, 2019, City Council approved an expenditure only amendment to the NBS agreement to complete the second phase of the balloting work, including developing assessment methodology, preparing the Engineer’s Report, and conducting the balloting itself. On April 16, 2019, the City Council approved the initiation of the balloting process, and property owners will again have the opportunity to vote to increase assessments by mailed ballot with a public hearing scheduled for June 4, 2019 to determine the results of the balloting.
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 further reduced by $10,112.
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 revenues received through the assessments from this zone and any accumulated fund balance are 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). For FY 2019-20, property owners request that the assessments be further reduced to $50 per property, given the sufficient fund balance for anticipated capital work. Staff concurs and recommends assessments be reduced to $50 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 and anticipates presenting this plan in the FY 2020-21 Engineer’s Report.
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 an assessment increase in this zone that culminates in doubled assessments over five years. Following the completion of this five-year increase, assessments escalate 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.
ALTERNATIVES
• Approve the Engineer’s Report and levying the assessments.
• Do not proceed with approving the Engineer’s Report and 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 which would reduce services or would require General Fund subsidy requiring reduction of other services.
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.
CLIMATE IMPACTS
Maintenance activities 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, confirming diagram and assessment, and ordering the levy of assessments, Island City Landscaping and Lighting District 84-2, all zones.
CITY MANAGER RECOMMENDATION
The City Manager recommends approval of the Engineer’s Report and ordering the levy of assessments for the Island City Landscaping and Lighting District.
Respectfully submitted,
Liam Garland, Public Works Director
By,
Liz Acord, Public Works Coordinator
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. Zones 1 through 8 Maps
2. Engineer's Report