-Title
Public Hearing to Consider Adoption of Resolution Approving the Engineer's Report, Confirming Diagram and Assessment, and Ordering the Levy of Assessments for the Island City Landscaping and Lighting District 84-2, All Zones (Various Locations). (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 (LLAD). 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 and will be complete with the adoption of this resolution.
BACKGROUND
On February 18, 2020, in accordance with the Landscape and Lighting Act of 1972 (Act), the City Council appointed the City Engineer and the City Attorney for the LLAD and authorized the preparation of the s Report. On April 21, 2020, the City Council preliminarily approved the s Report, declared an intention to order the levy and collection of the assessments, and set a public hearing for June 16, 2020.
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) 2020-21 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 2020-21, 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, Encinal 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.
In FY 2018-19, at the direction of the Zone 4 business association board, the Downtown Alameda Business Association (DABA), the LLAD conducted a balloting to increase assessments that would add areas to the district and fund improved sidewalk cleaning, more thorough maintenance of the public litter cans, and a healthier reserve. The balloting was successful and in FY 2019-20 the increased assessment was collected and Public Works staff started working with the district to increase services. The revenues received through the assessments from this zone are sufficient to fund the proposed FY 2020-21 maintenance budget. For FY 2020-21 the proposed property assessment includes an annual Consumer Price Index (CPI) increase of 2.9%.
At the request of DABA, the Association has asked that the $10,000 used to help fund the balloting process in FY 2018-19 be repaid to them in FY 2022-23. DABA has agreed to save one-third of the cost for FY 2020-21, 2021-22 and 2022-23 for a full repayment in 2022-23.
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.
At the request of the HBBP Association, and as a result of the changes to access to and use of the business park, the previously included offsite area (Harbor Bay Parkway between Doolittle Drive and Maitland Drive) is being eliminated from the scope of work and funds will be reallocated to the onsite work plan.
The Act permits changes to existing improvements and Sections 22622 and 22624 (b) of the Act require “any substantial changes” to be noted in a resolution. The proposed alteration of improvements will not change the benefits conferred upon parcels within Zone 5 and will not change the proportionality of benefit assignment, as previously established. As such, the proposed alteration of improvements will not affect the nature of the assessment methodology and any changes to the assessments levied would only be the result of changes to the budget. City workers/contractors will take over responsibility for the offsite area and Zone 5 assessments will no longer be used to fund ongoing maintenance.
Based on previous approval by the property owners, an automatic CPI increase is applied to the assessment. The revenues received through the assessments from this zone are sufficient to fund the proposed FY 2020-21 maintenance budget. For FY 2020-21, the proposed property assessment includes an annual CPI increase of 2.9%.
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 2.9%.
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. In 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 years. 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 five-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. As a result of this successful balloting process, last Fiscal Year was the zone’s fifth and final year of its assessment increase that culminates in doubled assessments over five years. Following the completion of this five-year increase, assessments increase automatically by annual CPI, for FY 2020-21, the proposed budget for this district includes an annual CPI increase of 2.9%.
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 $2,924.76 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 began 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 proceeding with levying assessments for the coming year.
• Do not proceed with approving 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 LLAD and services would be reduced and/or another funding source required.
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 (see table below). These costs are included within the operating budget for each department.
|
Fund/Program |
Purpose |
Amount |
|
Public Works Administration (4205310) |
General benefit contribution on Webster St. in Zone 8 |
$ 2,924.76 |
|
Measure B (215) |
For young tree care and training within Zone 4 |
$ 25,500.00 |
|
Alameda Recreation and Park Maintenance (001-51210) |
Maintaining the shoreline park along HBP within Zone 5 |
$ 15,000.00 |
|
Street Tree and Median Maintenance (001-4250) |
Street tree maintenance for Zone 7 |
$ 3,000.00 |
|
Annual Assessment Administration (279) |
Administrative costs proportionally shared by each zone. |
$101,500.00 |
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. Proper maintenance of landscape areas can have beneficial effects for storing carbon. During normal storms or larger, climate-change fueled storms, removal of landscaping debris from public areas can ensure proper storm drainage and decrease the risk of local flooding.
RECOMMENDATION
Approve the Report confirming the diagram and assessments, and ordering the levy of assessments for the Island City Landscaping and Lighting District 84-2, all zones.
CITY MANAGER RECOMMENDATION
The City Manager recommends approval of the report confirming the diagram and assessments, and ordering the levy of assessments for the Island City Landscaping and Lighting District 84-2 all zones.
Respectfully submitted,
Liam Garland, Public Works Director
By,
Amanda Eberhart, Public Works Management Analyst
Financial Impact section reviewed,
Nancy Bronstein, Interim Finance Director/Human Resources Director
Exhibits:
1. Zones 1 through 8 Maps
2. Engineer's Report
cc: Eric Levitt, City Manager