Landscape and Lighting District 84-2
Zone 7, Bay Street
1 Regular City Council Meeting, June 20, 2023
Objectives
Public Hearing and consideration of Resolution declaring no levy of assessment for Zone 7 for Fiscal Year 2023- 24
Consider directing staff to further engage with Zone 7 owners on future of District
Acknowledge community concerns of using already approved Zone funds to test and potentially remove unsafe, diseased elms
2 Items to Cover
District/Zone Background
Financial Overview
Current Work
Community Outreach/Future Discussion
Q&A
3 District/Zone Background
City’s Landscape and Lighting District 84-2
formed in 1984, zones throughout the City.
Zone 7, 1100-1200 Bay Street, annexed
into District in 1986, at property owner
request
Enhanced maintenance of improvements
within the public right- of- way, primarily
enhanced tree maintenance
4 Enhance Maintenance
• Dutch Elm Disease arrived in Bay Area in 1970s
devastating the American Elm population
• Primary focus of Zone 7 was to slow the progression
of the disease and prolong the life of the old elms
within Zone
– regular pruning, testing, treatments
• When a tree succumbed to the disease, Zone
planted a larger tree than typical under the urban
forest program
• More recently, replacement trees have more frequent
pest control than under regular program5
Financials Overview - Current
6 Fiscal Year 2023-24 Levy Update
Staff recommend no levy for coming year while staff engage with property owners to determine next steps
Fund balance at close of Fiscal Year 2022-23
*Already approved as part of this FY budget
**No assessment was levied in FY2022-23, $3,000 reflects City contribution to Zone 7 FY2021-22 Audited Closing Fund Balance $ 98,308.32
Maximum FY2022-23 Expense Budget* $ 55,664.88
Projected FY2022-23 Revenue** $ 3,000.00
Projected EOY FY2022-23 Fund Balance $ 45,643.44
Financials Overview - Historic
• Key takeaways over last 13 years
– Revenue from property assessments $54,600; revenue from City contribution of General Funds $39,000
– Annual expense includes administrative costs and cost for services
– Past services include treatments, testing, removal, planting and associated services
7 Current Work
8 FY 22-23: Tree injections/pest control complete; testing of 9 remaining old Elms with removal, if needed
Community concerns over use of Zone dollars for
testing/removal
Approach consistent with past practice, especially given annual City contribution of funds
FY 23-24: $28K budgeted for tree planting, insecticide injections for Lindens and other pest control
Staff Recommendation of No Levy 23/24
Adopt the Resolution ordering no levy of assessment for Fiscal Year 2023-24.
– Initial recommendation from staff was to levy
$150/property to replenish the fund balance after
testing/removal costs in 22/23 and planting costs in
23/24
– Additional conversation on the future of the Zone
9 Staff Recommended Options for
Consideration Going Forward
10 1. Administration of Zone consistent with
how City administers other zones in
District
2. Dissolve Zone and enter into operating
agreement with newly formed HOA*
3. Dissolve Zone and incorporate trees
into City’s management of Urban
Forest*
* As part of any future dissolution recommendation, disbursement of remaining fund balance will be addressed
TREE TYPE Count
AMERICAN ELM 10
OTHER ELM SPECIES 21
ASH SPECIES 1
LITTLE LEAF LINDEN 20
MAPLE OCTOBER
GLORY 6
SAWTOOTH
ZELKOVA 2
SILVER LINDEN 2
SYCAMORE 5
VACANT SITE 6
TOTAL 73
Already Funded Old Elm Testing/Removal Costs
Continue already contracted and funded testing and
potential removal of unsafe, diseased elms consistent
with already approved budget
– $37,500 estimated for testing ($19,500) and removal of all trees ($18,000), should that be required
– Consistent with past practice for diseased Elms
– Annual City contribution to fund
11 12
Questions and Discussion