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 1, 2021 - Maintenance Assessment District 01-01 (Marina Cove). (Public Works 276)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
To levy next fiscal year's assessments for the Park in the Marina Cove development, the City of Alameda (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. Staff is now presenting a draft Report outlining the proposed budgets and assessments for the coming year for preliminary approval and approval to set a public hearing for June. After the public hearing, the City Council will consider approving the assessment for the following year.
BACKGROUND
On June 7, 2002, the City Council established the District, whose purpose is to provide maintenance for the sidewalks, landscaping, and City Park in the Marina Cove development (see Exhibit 1 for map).
To levy next fiscal year's assessments, the City is required to follow a prescribed legal process. This annual process began on February 16, 2021, with the City Council's appointment of an Engineer-of-Work and an Attorney-of-Record for the District. Staff now seeks the City Council’s preliminary approval of the draft Report outlining the proposed budget and assessments for the coming year and setting a public hearing date of June 1, 2021. After the hearing, the City Council will consider approving the assessments for the following year.
The resolution is required to be published once in a local paper with a minimum of ten days between the first notice of publication of the resolution and the public hearing.
DISCUSSION
This district funds the maintenance of street trees, medians, sidewalks, pathways, irrigation, lighting, and the associated utilities. The Report (Exhibit 2), 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 estimated annual budget to maintain the public improvements within the district.
When the district was established, an automatic Consumer Price Index (CPI) increase was pre-approved. Accordingly, the assessments will increase by 1.567%, which is the CPI for the Bay Area for the year ending February 2021.
Staff proposes that the City Council adopt a resolution to preliminarily approve the Report and set the regular City Council meeting of June 1, 2021, as the date for the public hearing.
ALTERNATIVES
• Approve proceeding with levying assessments for the coming year.
• Do not proceed with approving 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 and services would be reduced and/or another funding source required.
FINANCIAL IMPACT
The assessment district was created to maintain public improvements associated with the Marina Cove development. Direct costs associated with these services, such as landscape maintenance, are paid by the District. Funds not expended in a fiscal year remain within the assessment district (Fund 276) and may be used for future expenses. The cost to administer the assessment district, including full City cost allocation, in Fiscal Year 2021-22 is approximately $5,000 and is included within the proposed budget. In prior years, the District levy has not been sufficient to cover the annual budgeted expenditures. The budget presented in the Report addresses this issue and costs are covered by the maximum levy and available fund balance. There is no impact to the General Fund.
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
The work 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 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 1, 2021 - maintenance assessment district 01-01 (Marina Cove).
CITY MANAGER RECOMMENDATION
The City Manager recommends adoption of 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 1.
Respectfully submitted,
Erin Smith, Public Works Director
By,
Amanda Eberhart, Management Analyst
Financial Impact section reviewed,
Annie To, Finance Director
Exhibits:
1. Maintenance Assessment District Map
2. Engineer's Report
cc: Eric Levitt, City Manager