Quint & Thimmig LLP 1/2/22 3/20/22
01019.36:J18041
CITY OF ALAMEDA COMMUNITY FACILITIES DISTRICT NO. 22-2 (ALAMEDA MARINA – SHORELINE IMPROVEMENTS MAINTENANCE AND ADAPTIVE MEASURES) COMMUNITY FACILITIES DISTRICT REPORT CONTENTS Introduction A. Description of Adaptive Measures and Maintenance Services B. Proposed Boundaries of the Community Facilities District C. Cost Estimate Exhibit A – Description of the Adaptive Measures and Maintenance Services Exhibit B – Cost Estimate -2-
CITY OF ALAMEDA COMMUNITY FACILITIES DISTRICT NO. 22-2 (ALAMEDA MARINA – SHORELINE IMPROVEMENTS MAINTENANCE AND ADAPTIVE MEASURES) INTRODUCTION. The City Council (the “City Council”) of the City of Alameda (the “City”) did, pursuant to the provisions of the City of Alameda Special Tax Financing Improvement Code (the “Law”), on March 15, 2022, adopt a resolution “Declaring Intention to Establish a Community Facilities District and to Authorize the Levy of Special Taxes Therein – Alameda Marina – Shoreline Improvements Maintenance and Adaptive Measures” (the “Resolution of Intention”). In the Resolution of Intention, the City Council expressly ordered the preparation of a written Community Facilities District Report (the “Report”), for the proposed City of Alameda Community Facilities District No. 22-2 (Alameda Marina – Shoreline Improvements Maintenance and Adaptive Measures) (the “District”). The Resolution of Intention ordering the Report did direct that the Report generally contain the following: 1. A brief description of the possible adaptive measures and the maintenance services to be eligible to be financed by the District; and 2. An estimate of the cost of providing the adaptive measures and the maintenance services, including the costs of the possible bond financing and the City’s administration of the District. For particulars, reference is made to the Resolution of Intention for the District, as previously adopted by the City Council. NOW, THEREFORE, I, the Director of Public Works of the City of Alameda, do hereby submit the following data: A. DESCRIPTION OF ADAPTIVE MEASURES AND MAINTENANCE SERVICES. A general description of the adaptive measures and the maintenance services that the City Council has determined to be eligible to be funded by the District is as shown in Exhibit “A” attached hereto and by this reference made a part hereof. B. PROPOSED BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT. The proposed boundaries of the District are those properties and parcels on which special taxes may be levied to pay for the costs and expenses of the adaptive measures and the maintenance services. The proposed boundaries of the District are described on the map of the District recorded on March 18, 2022, in Book 19 at Page 32 of Maps of Assessment and Community Facilities Districts in the office of the County Recorder for the County of Alameda (instrument no. 2022057085), a copy of which map is on file with the City Clerk. -3-
C. COST ESTIMATE. The cost estimate for the adaptive measures, and the cost estimate for the annual special tax that may be levied for the maintenance services, is set forth in Exhibit “B” attached hereto and by this reference made a part hereof. Dated: April 19, 2022 By: Erin Smith, Director of Public Works, City of Alameda A-1
EXHIBIT A CITY OF ALAMEDA COMMUNITY FACILITIES DISTRICT NO. 22-2 (ALAMEDA MARINA – SHORELINE IMPROVEMENTS MAINTENANCE AND ADAPTIVE MEASURES) DESCRIPTION OF ADAPTIVE MEASURES AND MAINTENANCE SERVICES ELIGIBLE TO BE FUNDED BY THE DISTRICT ADAPTIVE MEASURES The District shall be eligible to finance all or a portion of the costs of capital improvements determined by the City to be implemented to provide protection to the property in the District from flooding due to sea level rise, including inland public access and recreation areas from the periodic inundation that may occur in extreme tide events as the sea levels rise beyond elevation 13.5 (NAVD 88). The adaptive measure improvements are to also provide protection for the interior areas of the site, including buildings and streets. • The improvements may include implementation of floodwalls, earth berms, elevated and/or replaced Bay Trail, elevated wharf, elevated footbridge and other storm drain system enhancements and that are deemed necessary by the City to manage elevated groundwater. • The District may also fund costs of commissioning periodic condition assessments of the shoreline adjacent to the District by a licensed engineer to document the physical effects of sea level rise and life expectancy of the shoreline protection measures funded by the City’s Community Facilities District No. 20-1 (Alameda Marina). The Facilities eligible to be financed are to include the costs of design, engineering and planning, the costs of any environmental or other studies, surveys or reports, the cost of any required environmental mitigation, soils testing, permits, plan check and inspection fees, insurance, legal and related overhead costs, coordination and supervision, City staff and consultant costs, and any other costs or appurtenances related to any of the adaptive measures to be financed. MAINTENANCE SERVICES It is also expected that the District will be eligible to fund costs of any of the following maintenance services to the extent that the services are not otherwise being provided by or on behalf of one or more owners of property within, adjacent to or in the vicinity of the District: • The maintenance, repair and replacement of any of the improvements authorized to be funded by the City of Alameda Community Facilities District No. 22-1 (Alameda Marina) (“CFD 22-1”), other than Clement Avenue roadway improvements. The District may fund any of the following related to the authorized services: (a) the repair, removal or replacement of all or part of any of the improvements, including but not limited to the repair and replacement of timber decks, beams and piles, repairs of concrete spalding and repainting of steel members all related to the seawall authorized to be funded by CFD 22-1; (b) obtaining, constructing, furnishing, operating and maintaining equipment, apparatus or facilities related to providing the services and/or equipment, apparatus, facilities or fixtures in areas to be A-2
maintained; (c) obtaining supplies or appurtenant facilities necessary for such maintenance; (d) paying the salaries and benefits of personnel necessary or convenient to provide the services; (e) payment of insurance costs and other related expenses; and (f) the payment of cost of and the provision of reserves for repairs and replacements, and provision for reserves for future costs of services. It is expected that the services will be provided by the City, either with its own employees or by contract with third parties, or any combination thereof. The District may also provide for the reimbursement to the City to the extent that the City advances funds to pay for any of the foregoing services. OTHER The District may also finance any of the following: • Bond related expenses, including underwriters discount, appraisal and absorption study costs, reserve fund, capitalized interest, financial advisor, special tax consultant, bond counsel and underwriters’ counsel fees and expenses, landowner counsel fees and expenses, official statement printing, and all other incidental expenses. • Administrative fees and expenses of the City and the Bond trustee or fiscal agent related to the District and the Bonds, and costs of the City or designee in complying with disclosure requirements of the California Government Code and federal securities laws. • Reimbursement of costs advanced by the City, any landowner or developer of property in the District or any party related to any of the foregoing, for Adaptive Measures, Maintenance Services or other purposes or costs of the District.
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EXHIBIT B CITY OF ALAMEDA COMMUNITY FACILITIES DISTRICT NO. 22-2 (ALAMEDA MARINA – SHORELINE IMPROVEMENTS MAINTENANCE AND ADAPTIVE MEASURES) ADAPTIVE MEASURES COST ESTIMATE 1. ESTIMATED FUTURE COSTS OF ADAPTIVE MEASURES $ 90,600,000(1) 2. INCIDENTALS (a) Bond Reserve Fund(2) $ 8,000,000 (b) Bond Discount/Underwriter Compensation(3) 1,000,000 (c) Other Costs of Issuance(4) 400,000 Subtotal $ 9,400,000 TOTAL BOND AMOUNT NEEDED $100,000,000 (1) Estimated in 2021 to be $14,558,000; but not expected to be needed for 50-75 years. (2) Estimated at 8% of Bond principal. (3) Estimated at 1% of Bond principal. (4) Estimated at 0.4% of Bond principal. SHORELINE IMPROVEMENTS MAINTENANCE ESTIMATE Estimated in 2021 to annually cost: $37,000, increasing each Fiscal Year by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.