Title
Staff Report for a City of San Leandro City Council Resolution to Accept the Engineer's Report for Fiscal Year 2020-2021 for the Heron Bay Maintenance Assessment District, Assessment District No. 96-3 and Ordering the Levy and Collection of Assessments Within the Heron Bay Maintenance Assessment District; Assessment District No. 96-3 for Fiscal Year 2020-2021
Staffreport
SUMMARY AND RECOMMENDATIONS
The Heron Bay Maintenance Assessment District provides funding for the on-going maintenance of public facilities at the Heron Bay development and the shoreline area. The Annual Engineer's Report summarizes the expenses for the previous fiscal year and recommends assessment amounts for the upcoming fiscal year to continue funding the District. The proposed assessment for Fiscal Year (FY) 2020-2021 is 75% of the maximum allowed by the District and represents a decrease of 18% from last year's assessment.
Staff recommends adopting the resolutions accepting the Annual Engineer's Report for FY 2020-2021 and ordering the levy and collection of assessments for the Heron Bay Maintenance Assessment District, Assessment District No. 96-3.
BACKGROUND
At its regular meeting on June 17, 1996, the City Council adopted Resolution No. 96-118 establishing the Heron Bay Maintenance Assessment District and subsequently approving a yearly assessment and levy. The District provides funding for the on-going maintenance of certain public facilities constructed as part of the Heron Bay development, including landscaping, storm water facilities, marshlands, and trail areas at the westerly end of Lewelling Boulevard. The District is currently providing the funding for Bay Trail pavement maintenance and for the Heron Bay Rip-Rap Replacement Project (Levee Maintenance), which has been awarded and will begin construction in the fall of 2020 when native species will be least impacted.
Willdan Financial Services (Willdan) is currently retained as the Engineer-of-Work and has prepared the Annual Engineer's Report for FY 2020-2021 as well as the associated Assessment Roll for FY 2020-2021. A copy of the Engineer's Report is attached to the Resolution accepting the Engineer's Report and a copy of the Assessment Roll is attached to the Resolution ordering the levy and collection of assessments.
Analysis
Services to the District are provided by the City of San Leandro’s Engineering & Transportation, Public Works, and Police Departments; the County of Alameda Public Works Agency; outside consultants; and outside contractors. The services cover maintenance of the facilities, monitoring of the marshland to confirm its health, feral animal removal, capital improvements, and administration. The cost of services for FY 2020-2021 is estimated at $690,613 including capital improvement projects.
The District fund balance is estimated to be $755,000 at the end of FY 2019-2020. The balance is unusually high because the two capital improvement projects were delayed by permitting and a Shelter In Place order from the Alameda County Health Officer. These projects are expected to be completed in FY 2020-2021. In accordance with District rules, $300,000 must be held in reserve for capital improvements including unexpected or emergency repairs.
Fund Balance end of FY 2019-20 estimate $755,000
Maintenance costs FY 2020-21 estimate ($690,613)
FY 2020-21 Assessments $306,402
Interest Income FY 2019-20 estimate $3,300
Reserve Fund Balance FY 2019-20 estimate $374,089
The Annual Engineer's Report includes the following:
• Description of improvements maintained by funds provided by the District;
• Budget based upon estimated costs for FY 2020-2021;
• Table of maximum annual assessments, method of apportionment, and calculation of proposed assessment;
• Reference to an Assessment Diagram for the District; and
• Assessment Roll showing each property to be assessed and the amount of the assessment.
The maximum recommended assessments and annual adjustments are as follows:
FY 2020-21 FY 2020-21
FY 2019-20 Estimated Annual Proposed
Housing Type and Assessment Levy at Maximum Assessment
Number of Units (excludes reserve fund)
451 Single-Family Units $295,928 $323,439 $242,575
178 Motor Court Units $77,864 $85,102 $63,827
Total Assessments $373,792 $408,541 $306,402
Individual assessments will be reduced from $656.16 to $537.86 for single family units and from $437.44 to $358.58 for motor court units.
Current Agency Policies
• Maintain and enhance San Leandro’s infrastructure
• Place San Leandro on a firm foundation for long-term fiscal sustainability
Previous Actions
• On July 17, 1996, by Resolution No. 96-118, the City Council established the Heron Bay Maintenance Assessment District.
• On July 1, 2019, by Resolution Nos. 2019-118 and 2019-119, the City Council accepted the Engineer’s Report and ordered the levy and collection of the assessment for Fiscal Year 2019-20.
Fiscal Impacts
• The activities of the Heron Bay Maintenance Assessment District have no fiscal impact on the City since they are supported by the annual assessments.
• All administrative and maintenance costs associated with the District are included in the proposed assessments.
Attachments to Resolutions
• Engineer’s Report
• Preliminary Assessment Roll
PREPARED BY: Nick Thom, P.E., City Engineer, Engineering and Transportation Department