Fiscal Year 2024 ENGINEER’S REPORT
City of Hayward
Maintenance District No. 2
June 2023
Final Report
ATTACHMENT IV
City of Hayward
Maintenance District No. 2
Engineer’s Report FY 2024
Page i
City of Hayward
City Council
Mark Salinas, Mayor
Angela Andrews, Mayor Pro Tempore
Ray Bonilla Jr., Council Member
Dan Goldstein, Council Member
Julia Roche, Council Member
George Syrop, Council Member
Francisco Zermeño, Council Member
Clerk of the Council
Miriam Lens
City Manager
Kelly McAdoo
Maintenance Service Director
Todd Rullman
City Attorney
Michael Lawson
Engineer of Work
SCI Consulting Group
City of Hayward
Maintenance District No. 2
Engineer’s Report FY 2024
Page ii
Table of Contents
Introduction ....................................................................................................................1 Overview .............................................................................................................................. 1 Legislative Analysis ............................................................................................................... 1 Plans and Specifications ..................................................................................................3 Introduction ......................................................................................................................... 3 Description of Improvements ............................................................................................... 3 Fiscal Year 2024 Estimate of Cost and Budget.................................................................4 Estimate of Costs .................................................................................................................. 4 Method of Apportionment .............................................................................................6 Assessment .....................................................................................................................7 Vicinity Map ....................................................................................................................9 Assessment Diagram .....................................................................................................10 Appendix A - Assessment Roll .......................................................................................12
City of Hayward
Maintenance District No. 2
Engineer’s Report FY 2024
Page iii
List of Figures
Figure 1 – 2024 Estimate of Cost ................................................................................................ . 5
City of Hayward
Maintenance District No. 2
Engineer’s Report FY 2024
Introduction
Overview
On April 16, 2002, by Resolution No. 02‐043, the City Council approved the Final Map of Tract 7317 for a 114
‐lo
t residential subdivision, with 109 single‐family homes, located on the northerly side of Eden Shores Boulevard and westerly of the Union Pacific Railroad.
O
n November 26, 2002, by Resolution No. 02‐171, the City Council approved the Final Map of Tract 7361 for a 120 lot residential subdivision, with 116 single‐family homes, located on the southerly side of Eden Shores Boulevard and westerly of the Union Pacific Railroad.
O
n June 3, 2003, by Resolution No. 03‐083, the City Council approved the Final Map for Tract 7360, for a 318
‐lo
t residential subdivision, with 309 single‐family homes located on the southwesterly side of Eden Shores Drive and westerly of the Union Pacific Railroad. The additional lots in each subdivision, 27 in total, will be landscaped areas, parks, wetlands or buffer areas.
C
onditions of approval for Tracts No. 7317, 7360 and 7361, included provisions for construction of a water buffer channel and storm‐water pretreatment pond, masonry walls, anti‐predator fences, and landscaping within the proposed devel opment area. Maintenance District No. 2 provides a funding source to operate and maintain these improvements, including the furnishing of water and electrical energy along with debris removal, weeding, trimming, and pest control spraying.
On June 24, 2003, by Resolution No. 03‐102, the City Council ordered the formation of Maintenance District No. 2 to provide the funding for the operation and maintenance of these facilities. The FY 2004 Final Engineer’s Report (formation report) included a FY 2004 budget which proposed $343,875.00 in expenditures at buildout for an anticipated 525 assessable parcels which equated to Maximum Base Assessment (MBA) Rate of $655.00 per parcel. This MBA rate which may be levied is increased each fiscal year by the prior year’s change in the Consumer Price Index.
Legislative Analysis
Proposition 218 Compliance
On November 5, 1996, California voters approved Proposition 218 entitled "Right to Vote on Taxes Act," which added Articles XIIIC and XIIID to the California Constitution. While its title
City of Hayward
Maintenance District No. 2
Engineer’s Report FY 2024
refers only to taxes, Proposition 218 established new procedural requirements for the formation and administration of assessment districts.
Proposition 218 stated that any existing assessment imposed exclusively to finance th e capital costs or maintenance and operation expenses for sidewalks, streets, sewers, water, flood control, drainage systems, or vector control on or before November 6, 1996, shall be exempt from the procedures and approval process of Proposition 218, unle ss the assessments are increased.
Proposition 218 defines increased, when applied to an assessment, as a decision by an agency that does either of the following:
Increases any applicable rate used to calculate the assessment. Revises the methodology by which the assessment is calculated, if that revision results in an increased amount being levied on any person or parcel.
The formation methodology used to calculate the MBA that could be levied in any given year allows the MBA from the prior year to be incre ased by the prior year’s change in the Consumer Price Index. Therefore, based upon the review of the City Attorney, imposing the assessment adjustment each year based upon the prior year’s increase in the Consumer Price Index does not require Proposition 218 proceedings.
Noticing, Public Comment, and Public Hearing
Noticing and information regarding this report were provided via the following methods: 1) a notice was mailed to all affected property owners to provide detail of their recommended FY 2024 assessment rate and to alert them to three community meetings where they could provide input (May 31, June 06, June 27); and 2) published a legal notice in the East Bay Times on or before June 17, 2023.
On June 27, 2023, the City is proposing to hold a public hearing to provide an opportunity for any interested person to be heard. After the public hearing, the Council may adopt a resolution setting the annual assessment amounts as originally proposed or as modified. Following the adoption of this resolution, the final assessor’s roll will be prepared and filed with the Alameda County Auditor’s Office to be included on the FY 2024 tax roll. Payment of the assessment for each parcel will be made in the same manner and at the same time as payments are made for property taxes.
All funds collected through the assessment must be placed in a special fund and can only be used for the purposes stated within this report.
City of Hayward
Maintenance District No. 2
Engineer’s Report FY 2024
Plans and Specifications
Introduction
The annual Engineer’s Report includes: (1) a description of the improvements to be operated, maintained, and serviced; (2) a listing of the proposed collection rate to be levied upon each assessable lot or parcel; and (3) an estimated budget.
Description of Improvements
The facilities, which have been constructed within the City of Hayward's Maintenance District No. 2 boundaries, and those which may be subsequently constructed, will be operated, maintained, and serviced and are generally described as follows:
• Water Buffer Channel;
• Storm‐water Pre‐Treatment Pond;
• Masonry Walls;
• Anti‐predator Fences; and
• Miscellaneous Landscaping
The operation, maintenance and servicing of these improvements include, but are not limited to personnel, water (for irrigation and buffer replenishment), electrical energy, materials (including diesel fuel and oil), debris removal, weeding, trimming, pest control spraying, etc.
City of Hayward
Maintenance District No. 2
Engineer’s Report FY 2024
Fiscal Year 2024 Estimate of Cost and Budget
Estimate of Costs
Chapter 10, Article 10, Section 10‐10.25 of the Hayward Municipal Code and as supplemented by the provisions of Chapter 26 of Part 3 of Division 7 of the Streets and Highways Code of the State of California provides that the total cost of operation, maintenance and servicing of the water buffer channel, water treatment pond, masonry walls, anti‐predator fences and landscaping can be recovered by the District. Incidental expenses including administration of the District, engineering fees, legal fees and all other costs associated with these improvements can also be included.
Tract No. 7317, 7360 & 7361
Formed: June 24, 2003
Resolution Number: 03‐102
FY 2024
Maximum Base Assessment Rate: $1,125.80
Assessment Amount per Parcel: $264.24
Number of Parcels: 534
Assessment Income: $141,104.16
The following is an overview of the FY 2024 assessment district:
• M
aximum Base Assessment (MBA) Rate: was increased from the prior year’s MBA rate of $1,069.14 to $1,125.80 by applying CPI‐U
for the San Francisco‐O
akland‐H
ayward
MSA (5.30% for the period February 2022 to February 2023).
• A
nnual CPI increase: the MBA amount can increase annually based upon the prior year’s change in the CPI.
• Assessment revenue: the FY 2024 amount needed to operate and maintain the facilities and contribute to the capital reserve is: $141,104.16.
• Annual assessment charge: each of the 534 parcels shall be apportioned an equal share of the total assessment for this zone as the special benefit derived by the individual parcels is indistinguishable from each other. The FY 2024 per parcel charge will increase from the previous year from $240.22 to $264.24. This amount is below the MBA and is sufficient for maintaining levels of service and for keeping a reserve balance. In future years, if there is a need for additional funds, the assessment amount may be increased up to the MBA amount.
City of Hayward
Maintenance District No. 2
Engineer’s Report FY 2024
• Proposition 218: Future increases in the assessment amount above the MBA amount would require the noticing and balloting of property owners per the requirements of Proposition 218.
Figure 1 – 2024 Estimate of Cost
City of Hayward
Maintenance District No. 2 - Eden Shores - Water Buffer F
und 271, Project 3718
Established 2003, 534 Parcels
FY 2021 FY 2022 FY 2023 FY 2024
Actual Actual E stimated Proposed
Assessment
a. M aximum Base Assessment Amount 1,000.68 1,016.39 1,069.14 1,125.80 b. Annual Per Parcel Assessment 198.95 228.79 240.22 264.24 c. # of Parcels 534 534 534 534 d. Total Amount Assessed for the District: 106,239 122,175 128,277 141,104 Income
a. Annual Assessment Revenue 106,925 122,605 128,277 141,104 b. Minus County Tax Collection Fee (1.7%) (1,806) (2,077) (2,181) (2,399) c. Other 1,550 (7,045) 3,400 3,600 d. Total Revenue: 106,669 113,483 129,497 142,305 Services
a. Utilities: Water 48,063 50,682 60,000 70,000 b. Utilities: PGE 9,204 16,138 17,000 18,000 c. Maintenance ‐ Landscaping ‐ New Image ‐ 32,688 33,669 34,679 d. Maintenance ‐ Pond ‐ Solitude 2,184 ‐ ‐ ‐ e. Maintenance ‐ One‐Time Project/Maintenance 39,288 42,973 10,000 45,000 f. Fence Repair ‐ 75,000
h. Pump Repair ‐ 30,000
i. Fire Hazard Mitigation (Goats) ‐ ‐ ‐ 7,500 j. Property Owner Noticing 172 218 260 268 k. Annual Reporting 552 1,012 1,032 1,063 l. City Administration 4,080 4,202 4,328 4,458 m. Total Expenditures: 103,543 147,912 156,289 255,968 Account Balance
a. Beginning Account Balance 371,526 374,652 340,223 313,431 b. Net Change (Revenue - Expenditures) 3,126 (34,429) (26,792) (113,663) c. Ending Account Balance: 374,652 340,223 313,431 199,768
City of Hayward
Maintenance District No. 2
Engineer’s Report FY 2024
Method of Apportionment
Chapter 10, Article 10, Section 10‐10.25 of the Hayward Municipal Code and as supplemented by the provisions of Chapter 26 of Part 3 of Division 7 of the Streets and Highways Code of the State of California permits the establishment of assessment districts by agencies for the purpose of providing certain public improvements which include the operation, maintenance and servicing of water buffer channels, water treatment ponds, masonry walls, predator fences and landscaping.
Proposition 218 requires that maintenance assessments must be levied according to benefit rather than according to assessed value. In addition, Article XIIID, Section 4(a) of the California Constitution limits the amount of any assessment to the proportional special benefit conferred on the property.
Because assessments are levied on the basis of benefit, they are not considered a tax, and, therefore, are not governed by Article XIIIA of the California Constitution.
Article XIIID of the California Constitution provides that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment. Exempted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements, and rights‐of‐ways.
The properties benefiting from the operation, maintenan ce and servicing of water buffer channels, water treatment ponds, masonry walls, predator fences and landscaping consist of the 534 single‐ family residential lots located within Tracts No. 7317, 7360 and 7361.
Each of the 534 single‐family residential lot s receive a special benefit in that they are able to be developed because protection to the adjacent open space has been provided through the construction of these improvements. The special benefit derived by the individual parcels is indistinguishable between parcels. Therefore, all residential parcels derive the same benefit and the corresponding method of assessment for residential land uses is based on a per parcel basis.
The estimated Fiscal Year 202 4 proposed assessment revenue is $ 141,104.16. The pr oposed assessment for the District for Fiscal Year 202 4 is $264.24 per parcel, which is the same amount as the previous fiscal year’s assessment. The MBA amount for the District is subject to an annual adjustment equal to the change in the applying CPI‐U f or the San Francisco‐Oakland‐Hayward MSA from the previous year. The MBA amount for the District for Fiscal Year 202 4 has been increased from the previous year’s MBA amount of $ 1,069.14 by 5.30%, which is equal to the percentage increase in CPI‐U from February 2022 to February 202 3. The MBA amount for the District for Fiscal Year 2024 is $1,124.80.
City of Hayward
Maintenance District No. 2
Engineer’s Report FY 2024
Assessment
WHEREAS, the City Council of the City of Hayward, County of Alameda, California, Pursuant to Chapter 26 of Part 3 of Division 7 of the Streets and Highways Code of the State of California, and Chapter 10, Article 10, Section 10
‐1
0.25 of the Hayward Municipal Code, and in accordance with the Resolution of Intention, being Resolution No. 23
‐13
7, preliminarily approving the Engineer’s
Report, as adopted by the City Council of the City of Hayward, on June 6, 2023, and in connection with the proceedings for;
W
HEREAS, said Resolution directed the undersigned Engineer of Work to prepare and file a report presenting an estimate of costs, a diagram for the Assessment District and an assessment of the estimated costs of the improvements upon all assessable parcels within the Assessment District, to which Resolution and the description of said proposed improvements therein contained, reference is hereby made for further particulars;
NOW, THEREFORE, the undersigned, by virtue of the power vested in me and the order of the City Council of the City of Hayward, hereby make the following assessments to cover the portion of the estimated cost of Improvements, and the costs and expenses incidental thereto to be paid by the Assessment District.
As required, an Assessment Diagram is hereto attached and made a part hereof showing the exterior boundaries of the Assessm ent District. The distinctive number of each parcel or lot of land in the Assessment District is its Assessor Parcel Number appearing on the Assessment Roll.
I do hereby assess and apportion said net amount of the cost and expenses of the Improvements, including the costs and expenses incident thereto, upon the parcels and lots of land within said Assessment District, in accordance with the special benefits to be received by each parcel or lot from the improvements, and more particularly set forth in the Es timate of Costs and Method of Assessment hereto attached and by reference made a part hereof.
The assessments are made upon the parcels or lots of land within Assessment District, in proportion to the special benefits to be received by the parcels or lots of land, from the Improvements.
Each parcel or lot of land is described in the Assessment Roll by reference to its parcel number as shown on the Assessor's Maps of the County of Alameda for the fiscal year 2024 . For a more particular description of said property, reference is hereby made to the deeds and maps on file and of record in the office of the County Recorder of the County.
City of Hayward
Maintenance District No. 2
Engineer’s Report FY 2024
I hereby place opposite the Assessor Parcel Number for each parcel or lot within the Assessment Roll, the amount of the assessment for the fiscal year 202 4 for each parcel or lot of land within said Maintenance District No. 2.
Dated: June 8, 2023
Engineer of Work
By ____________________________
John W. Bliss, License No. C052091
City of Hayward
Maintenance District No. 2
Engineer’s Report FY 2024
Vicinity Map
City of Hayward
Maintenance District No. 2
Engineer’s Report FY 2024
Assessment Diagram
The Assessment District Diagram for the City of Hayward's Maintenance District No. 2 (Eden Shores) is on file in the Office of the Hayward City Clerk and is incorporated in this report in Appendix “A”.
A detailed description of the lines and dimensions of each lot or parcel within the Assessment District are those lines and dimensions shown on the maps of the Assessor of the County of Alameda for Fiscal Year 2024.
For additional information as to the bearings, distances, monuments, easements, etc. of subject subdivisions, reference is hereby made to Final Tracts Maps No. 7317, 7360 and 7361 filed in the Office of the Recorder of Alameda County
City of Hayward
Maintenance District No. 2
Engineer’s Report FY 2024
City of Hayward
Maintenance District No. 2
Engineer’s Report FY 2024
Appendix A - A ssessment Roll
A list of names and addresses of the owners of all parcels within the City of Hayward's Maintenance District No. 2 are shown on the last equalized Property Tax Roll of the Assessor of the County of Alameda. This list is keyed to the Assessor's Parcel Numbers as shown on the Assessment Roll on file in the Office of the Hayward City Clerk.