Title
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)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
Assessments in Zone 4 (Park Street) of the City of Alameda's Landscape and Lighting District (LLD) 84-2 fund the area's enhanced maintenance. These assessments have remained unchanged since the early 1990s. As a result, the level of maintenance has significantly decreased.
At the request of the Downtown Alameda Business Association (DABA), the City of Alameda (City) entered into an agreement with NBS in November 2018 to complete the first phase of the process to increase assessments. On February 19, 2019, the City Council approved an expenditure only amendment to the NBS agreement to complete the second phase of the balloting work, which included preparing the assessment methodology, Engineer’s Report, and conducting the balloting itself. On April 16, 2019, Council initiated the balloting proceedings to increase assessments, and preliminarily approved the Engineer’s Report.
Ballots were mailed to property owners on April 18, 2019. The City Council must now conduct the public hearing, tabulate the ballots, and adopt a resolution confirming the balloting results.
BACKGROUND
The City's LLD began in 1984 and has six zones throughout the City. Zone 4 covers Park Street from the Park Street Bridge to San Jose Avenue, including some adjacent streets. Property owners in this zone have an average yearly assessment of approximately $374. The assessments pay for maintenance of this zone’s public areas including sidewalks, trash, recycle, and compost receptacles, and landscaping. These assessments have been unchanged since the early 1990s. Since that time, annual costs have increased without any additional revenue. As a result, the level of maintenance has decreased.
In 2013, staff began discussions with the 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. On July 7, 2015, ballots were tallied: 26% cast in favor, 74% opposed. The balloting did not pass, and existing assessments remained unchanged (a similar process was executed in 2014 with the West Alameda Business Association (WABA) and resulted in a successful balloting to increase assessments in Fiscal Year (FY) 2014-15 for the Webster Street zone of the LLD 84-2).
As part of the routine annual process to set assessments, the City Council must approve a budget for each zone for the coming year. With the total cost of services for the zone set to exceed the total assessment, the FY 2018-19 Budget required the use of the zone’s remaining reserves at the time and a $7,421 service cut.
This analysis is complicated because any assessment increase triggers Proposition 218, passed long after the LLD'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 LLD have not been assessed for some time and some parcels receive benefit but are not assessed. State law mandates that any property that receives the special benefit must also be assessed; therefore, this balloting process would correctly assess the parcels that have inadvertently been skipped and are receiving benefit.
As a result of these changes, the next year's average increase per property owner on Park Street is approximately 100%, as DABA 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 DABA. DABA indicated it wanted to proceed with balloting its property owners and fully increase assessments in one year. Staff initially proposed spreading the proposed total increase of assessments out over three years, consistent with past efforts. Given that DABA has been conducting education and outreach to the zone’s property owners and has key property owner commitment to support a one-year increase, the City Council initiated the balloting proceedings on April 16, 2019, to increase assessments in one year and preliminarily approved the Engineer’s Report. Following the April 16, 2019 Council action, DABA and the City held a property owners' meeting on Monday, May 6, 2019, to fully inform property owners and answer questions.
DISCUSSION
Ballots were mailed to property owners of record, postmarked no later than April 18, 2019. 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 weighed according to the proportional financial obligation of the affected property, and a majority protest exists if upon the conclusion of the hearing, ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessment. If there is a majority protest, then the proposed assessment increase will have failed and the flat assessments for Zone 4, which will be considered for approval on June 4, 2019, will remain in effect. 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. To make the County's tax roll, assessments must be submitted by early August.
ALTERNATIVES
The alternatives are based on the outcome of the 218 Election.
1. If the majority of ballots support the increase in assessment, the City Council is able to adopt a resolution confirming the balloting and increase the assessments.
2. If the majority of ballots do not support the increase in assessment, the City Council is able to adopt the resolution confirming the protest balloting, and the Assessments in the District will remain unchanged.
3. The City Council has an option if the protest balloting has the majority opposed to an increase, to direct the City Manager to work with DABA to evaluate alternative approaches to how to move forward.
FINANCIAL IMPACT
The direct costs of enhanced maintenance is funded primarily through assessments. Should the balloting succeed, the budget for this zone will increase by $118,220 (from $60,313 to $178,532). The General Fund (Fund 001) is scheduled to contribute $5,558 for Park Street in FY 2019-20. 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 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. Should the balloting for increased assessments be successful, increased assessments will fund additional daily maintenance activities focused on removal of litter and debris.
RECOMMENDATION
Adopt a resolution confirming the ballot results to determine whether a majority protest exists in the proceedings to increase assessments in Island City LLD 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 LLD 84-2, Zone 4 (Park Street).
CITY MANAGER RECOMMENDATION
The City Manager recommends confirming the ballot results determining whether a majority protest exists. The results will determine whether an increase in assessments will occur.
Respectfully submitted,
Liam Garland, Public Works Director
By,
Liz Acord, Public Works Coordinator
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibit:
1. Engineer’s Report
cc: Eric Levitt, City Manager