Title
Adopt a Resolution to Authorize the City Manager to Accept the Engineer's Report for Fiscal Year 2022-2023 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 2022-2023
Staffreport
COUNCIL PRIORITY
• Infrastructure
• Sustainability & Resiliency
• Fiscal Sustainability and Transparency
SUMMARY
The Heron Bay Maintenance Assessment District (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) 2022-2023 is 75% of the maximum allowed by the District.
RECOMMENDATIONS
Staff recommends adopting the resolutions to:
• Accept the Annual Engineer's Report for FY 2022-2023; and
• Order 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 (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. In 2020, the District completed a $365,000 project that installed engineered rip rap to restore a deteriorated shoreline levee that provides an emergency access route for the Heron Bay housing development.
Willdan Financial Services (Willdan) is currently retained as the Engineer-of-Work and has prepared the Annual Engineer's Report for FY 2022-2023 as well as the associated Assessment Roll for FY 2022-2023. 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 2022-2023 is estimated at $610,597 including capital improvement projects that include additional levee repair and trail maintenance.
The District fund balance is estimated to be $592,196 for FY 2021-2022. 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 2021-2022 estimate $592,196
District Costs FY 2022-2023 estimate ($610,597)
FY 2022-2023 Assessments $318,783
Interest Income FY 2022-2023 estimate $3,300
Reserve Fund Balance FY 2022-2023 estimate $303,682
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 2022-2023;
• 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 2022-23 FY 2022-2023
FY 2021-2022 Estimated Annual Proposed
Housing Type and Assessment Levy at Maximum Assessment
Number of Units (excludes reserve fund)
451 Single-Family Units $247,428 $336,509 $252,380
178 Motor Court Units $65,102 $88,537 $66,403
Total Assessments $312,530 $425,046 $318,783
Individual assessments will be $559.60 for single family units and $373.04 for motor court units, which are approximately 2% increases from the previous year.
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 June 15, 2020, by Resolution Nos. 20-189 and 20-190, the City Council accepted the Engineer’s Report and ordered the levy and collection of the assessment for Fiscal Year 2020-2021.
• On July 6, 2021, by Resolution Nos. 2021-107 and 2021-108, the City Council accepted the Engineer’s Report and ordered the levy and collection of the assessment for Fiscal Year 2021-2022.
Financial Impacts
There is no financial impact to the Fiscal Year 2022-2023 General Fund budget as a result of the proposed levy and collection of the assessment for the Heron Bay Maintenance Assessment District.
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. This Council action will not impact fund balance because there is no financial impact to the FY2022-2023 adopted budget.
ATTACHMENTS
Attachment A: Resolution to Accept the Engineer’s Report for Fiscal Year 2022-2023 for the Heron Bay Maintenance Assessment District, Assessment District No. 96-3 (Provides Funding for the On-Going Maintenance of Certain Public Facilities Constructed as Part of the Heron Bay Development)
Attachment B: Resolution Ordering the Levy and Collection of Assessments Within the Heron Bay Maintenance Assessment District; Assessment District No. 96-3 For Fiscal Year 2022-2023 (Provides Funding for the On-Going Maintenance of Certain Public Facilities Constructed as Part of the Heron Bay Development)
Attachment C: Engineer’s Report
Attachment D: Preliminary Assessment Roll
PREPARED BY: Kirsten Foley, Administrative Services Manager, Engineering and Transportation Department