Share to Facebook Share to Twitter Bookmark and Share
File #: 2022-2085   
Type: Consent Calendar Item
Body: City Council
On agenda: 6/21/2022
Title: Public Hearing to Consider Adoption of Resolution Approving the Engineer's Report, Confirming Diagram and Assessment, and Ordering the Levy of Assessments, Maintenance Assessment District 01-1 (Marina Cove). (Public Works 27741530)
Attachments: 1. Exhibit 1 - District Map, 2. Exhibit 2 - Engineer's Report, 3. Resolution

Title

 

 

Public Hearing to Consider Adoption of Resolution Approving the Engineer’s Report, Confirming Diagram and Assessment, and Ordering the Levy of Assessments, Maintenance Assessment District 01-1 (Marina Cove). (Public Works 27741530)

 

Body

 

To: Honorable Mayor and Members of the City Council

 

EXECUTIVE SUMMARY

 

In 2002, the City Council established the Maintenance Assessment District 01-1 (District).  The purpose of this district is to provide maintenance for the sidewalks, landscaping, and City of Alameda (City) parks in the Marina Cove development. The map of the area is shown in Exhibit 1.

 

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 15, 2022, in accordance with the Landscape and Lighting Act of 1972, the City Council appointed an engineer and an attorney for the annual proceedings associated with the Maintenance Assessment District (MAD) 01-1 in Marina Cove, and authorized the preparation of the Report.  On May 17, 2022, the City Council preliminarily approved the Report, declared an intention to order levy and collection of Marina Cove assessments, and set a public hearing for June 21, 2022. After the public hearing, the City Council will consider approving the assessments for the following year.

 

DISCUSSION

 

This Marina Cove Assessment District (District) funds the maintenance of street trees, medians, sidewalks, pathways, irrigation, lighting, and the associated utilities.  This includes maintenance costs of Marina Cove Park.  The Report was prepared by NBS Government Finance Group, 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 5.19% or $7,841.16, which is the CPI for the Bay Area for the year ending February 2022

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 Fiscal Year (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 the 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 recommends that the City Council adopt a resolution to approve the Report, confirm the diagram and assessment, and order the levy of assessments in Marina Cove’s Maintenance assessment district.  A copy of the Report is attached as Exhibit 2.

 

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 Alameda Municipal Code.

 

ENVIRONMENTAL REVIEW

 

In accordance with the California Environmental Quality Act (CEQA), this project is Categorically Exempt under the 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

 

Hold a public hearing to consider adoption of resolution approving the engineer’s report, confirming diagram and assessment, and ordering the levy of assessments, Maintenance Assessment District 01-1(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.                     District Map

2.                     Engineer’s Report

 

cc:                     Dirk Brazil, Interim City Manager