DATE: June 28, 2016
TO: Mayor and City Council
FROM: Development Services Director
SUBJECT
Title
Adopt a Resolution of Intention to Preliminarily Approve the Engineer's Report and Levy
Assessments for Fiscal Year 2017 for Maintenance District No.2 - Eden Shores Storm Water
Facilities and Water Buffer, and Set July 19, 2016, as the Public Hearing Date for such Actions
End
RECOMMENDATION
Recommendation
That the City Council adopts the attached resolution (Attachment I).
Body
BACKGROUND
The annual Engineer’s Report (Report) for Maintenance District No. 2 (MD2) is presented to the City Council in compliance with Section 10-10.25 of the Hayward Municipal Code. The Report is attached (Attachment II) and includes the recommended assessment to be levied against each property for Fiscal Year 2017.
MD2 was formed in June 2003 to fund the operation and maintenance of a pre-treatment stormwater pond, the water buffer zone bordering the residential portion of Eden Shores, the pedestrian bridge crossing the water buffer channel, perimeter fencing adjacent to the water buffer channel, and miscellaneous landscaping adjacent to the water buffer channel. MD2 includes three residential tracts in Eden Shores, totaling 534 homes. The funds collected from the property owners within MD2 pay for annual operations and maintenance and to establish capital reserve funds, which would be utilized to repair or replace sections of fencing, pumps, or bridge components in the future. MD2 assumed full maintenance responsibility of the improvements at the beginning of FY 2009.
A 2010 agreement between the City and the Alameda County Flood Control and Water Conservation District (Flood Control District) vests responsibility for the annual maintenance and operation of the pre-treatment stormwater pond with the Flood Control District. The 2010 agreement states that the Flood Control District concurred with the acceptance of the pond, subject to MD2 providing the Flood Control District with sufficient funds to operate, maintain, and provide for capital replacement and modifications that may become necessary for the optimal performance of the pond.
DISCUSSION
• Maximum base assessment amount: was increased from the prior year’s maximum base assessment amount of $851.10 to $876.78 per parcel by applying CPI-U for the San Francisco-Oakland-San Jose MSA (3.02% for the period February 2015 to February 2016).
• Annual CPI increase: the maximum base assessment amount does increase annually based upon the prior year’s change in the CPI
• Assessment revenue: the FY 2017 amount needed to operate and maintain the facilities and contribute to the capital reserve is: $106,239.30.
• Annual assessment charge: each of the 534 parcels shall be apportioned an equal share of the total assessment for this zone as the special benefit derived by the individual parcels is indistinguishable from each other. The FY 2017 per parcel charge will increase from the FY 2016 amount of $173.00 to $198.95 for FY 2017. This amount is below the maximum base assessment, and is sufficient for maintaining levels of service and for keeping a reserve balance. In future years, if there is a need for additional funds, the assessment amount may be increased up to the maximum base assessment amount.
• Reason for assessment increase: The assessment rate for FY 2017 will increase in order to maintain appropriate operating and capital reserves.
• Proposition 218: Future increases in the assessment amount above the maximum base assessment amount would require the noticing and balloting of property owners per the requirements of Proposition 218.
FISCAL IMPACT
There is no fiscal impact to the City’s General Fund for this recommendation, because the present expenditures are to be paid for by MD2 funds. Staff has evaluated the operating and capital reserve fund balances and asserts that they would be adequate for Fiscal Year 2017. If necessary, the annual assessment amount in Fiscal Year 2018 could be increased to bring the capital reserve fund balance to a higher level, if necessary.
PUBLIC CONTACT
Before the City Council public hearing on July 19, 2016, notices will be published once in The Daily Review newspaper and sent to all affected property owners about the hearing. A public meeting was held on May 19, 2016 for the property owners within MD2. At that meeting, staff were available to explain MD2’s responsibilities and funding, and property owners were given the opportunity to ask questions regarding assessments and services. The property owners may also raise concerns about assessments during the July 19, 2016 Council hearing.
NEXT STEPS
If the City Council adopts the attached resolution of intention, the City Council will hold a Public Hearing on July 19, 2016 to consider approving the Engineer’s Report and ordering the levy of assessments for FY 2017.
Prepared by: Peter Rei, PE, PLS Contract Development Review Engineer
Recommended by: David Rizk, AICP, Development Services Director
Approved by:
Fran David, City Manager
Attachments:
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Attachment I |
Resolution |
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Attachment II |
Preliminary Engineer’s Report |
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