Title
Adoption of Resolution Preliminarily Approving the Annual Report Declaring the City of Alameda's Intention to Order the Levy and Collection of Assessments and Providing for Notice of Public Hearing on June 21, 2022 - Maintenance Assessment District 01-01 (Marina Cove). (Public Works 27741530)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
To levy next fiscal year's assessments for the Marina Cove Assessment District 01-01 (District), 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 bringing 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 15, 2022, with the City Council's appointment of an Engineer-of-Work (Engineer) and an Attorney-of-Record (Attorney) 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 21, 2022. 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 10 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 annual Consumer Price Index (CPI) increase was pre-approved. Accordingly, for the coming year the assessments for the District are set to increase by 5.19% or $7,841.16, which is the CPI for the Bay Area for the year ending February 2022. This would be the maximum assessment and would bring the District’s Fiscal Year (FY) 2022-23 levy total to $122,446.16.
The purpose of the pre-approved CPI increase is to allow assessments to keep up with the rising costs of providing services within the District. To provide services for the coming year, the FY 2022-23 budget for the District proposes utilization of the maximum assessment. Presently, the District is paying for the full cost of park maintenance for the Marina Cove Park. In the coming year, staff is completing a Fiscal Impact Analysis to ensure Marina Cove Park maintenance costs are correctly shared between this District and the Community Facilities District (CFD 14-1) that was formed in 2014 for the adjacent Marina Cove II/Marina Shores development. Such sharing of costs may ultimately reduce the budget for this District.
The City Council has the option of approving the levy without the full automatic CPI increase, or to instead lower the increase to a percentage below the maximum allowed 5.19%. Doing so would not change the calculation of the maximum possible assessment, and in future years City Council could elect to set assessments at the maximum level. Instead, forgoing or reducing the allowable increase would only impact this coming fiscal year’s assessment.
Staff proposes that the City Council adopt a resolution to preliminarily approve the Report as presented and set the regular City Council meeting of June 21, 2022, as the date for the public hearing.
ALTERNATIVES
• Approve proceeding with levying assessments for the coming year at the allowable maximum assessment.
• Approve proceeding with levying assessments for the coming year at a rate below the allowable maximum assessment. The potential impact on the District is that the level of service would need to be reduced to bring the budget in line with the available assessment and/or more reserve funds would be needed to keep the current level of service. Further use of reserves may impact the near term ability to complete capital improvements.
• 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 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 277) and may be used for future expenses. The cost to administer the assessment district, including full City cost allocation, in FY 2022-23 is approximately $20,204 and is included within the proposed budget. There is no impact to the General Fund.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Municipal Code.
ENVIRONMENTAL REVIEW
In accordance with the California Environmental Quality Act (CEQA), this project is categorically exempt under CEQA Guidelines Section 15301, Maintenance of Existing Facilities, and statutorily exempt under CEQA Guidelines Section 15273(a) (Rates, Tolls, Fares, and Charges)
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 of Alamedas intention to order the levy and collection of assessments and providing for notice of public hearing on June 21, 2022 maintenance assessment district 01-01 (Marina Cove).
Respectfully submitted,
Erin Smith, Public Works Director
By,
Liz Acord, Public Works Coordinator
Financial Impact section reviewed,
Margaret L. O’Brien, Finance Director
Exhibits:
1. Maintenance Assessment District Map
2. Engineer's Report
cc: Gerry Beaudin, Interim City Manager