Title
Staff Report for a Resolution of the City of San Leandro City Council to Accept the Engineer's Report for Fiscal Year 2018-19 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 2018-19
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 shoreline. 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) 2018-19 is 93.32% of the maximum allowed by the District and represents an increase of 2.00% above last year's assessment.
Staff recommends adopting the resolutions accepting the Annual Engineer's Report for FY 2018-19 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.
Willdan Financial Services was retained as the Engineer-of-Work. Willdan prepared the Annual Engineer's Report for FY 2018-19 and the associated Assessment Roll for FY 2018-19. 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 2018-19 is estimated at $417,500.
The District reserve fund balance is estimated to be $592,196 at the end of FY 2017-18. In accordance with District rules, $300,000 of the funds must be held in reserve for capital improvements including unexpected or emergency repairs.
Reserve Fund Balance FY 2017-18 estimate $592,196
Maintenance costs FY 2018-19 estimate ($417,500)
FY 2018-19 Assessments $366,433
Interest Income FY 2018-19 estimate $3,300
Reserve Fund Balance FY 2018-19 estimate $544,429
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 2018-19
• Table of maximum annual assessments, method of apportionment, and calculation of proposed assessment
• Reference to an Assessment Diagram for the District
• Assessment Roll showing each property to be assessed and the amount of the assessment
The maximum recommended assessments and annual adjustments for FY 2017-18 are as follows:
FY 2018-19 FY 2018-19
FY 2017-18 Estimated Annual Proposed
Housing Type and Assessment Levy at Maximum Assessment
Number of Units (excludes reserve fund)
451 Single-Family Units $284,428 $310,883 $290,110
178 Motor Court Units $74,828 $81,795 $76,323
Total Assessments $359,256 $392,678 $366,433
The proposed assessment represents a modest increase above last year’s assessment. The reserve balance is higher than average because funding has been set aside to complete maintenance activities that cost more than a single year’s allocation. Planning and design activities are continuing for shoreline protection to maintain portions of the Bay Trail. Construction activities are tentatively scheduled for summer 2019.
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 17, 2017, by Resolution Nos. 2017 - 099 and 2017-100, the City Council accepted the Engineer’s Report and ordered the levy and collection of the assessment for Fiscal Year 2018-19.
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: Michael Stella, P.E., Principal Engineer, Engineering and Transportation Department