DATE: June 24, 2025
TO: Mayor and City Council
FROM: Maintenance Services Director
SUBJECT: LLAD 96 -1 Assessment Hearing: Adopt a Resolution to Approve the Final Engineer's Report, Reconfirm Maximum Base Assessment Amounts, Confirm the Assessment Diagrams and Fiscal Assessments, Order the Levy and Collection of Fiscal Assessments; and Adopt a Resolution to Approve Funding Recommendations and Appropriate Special Revenue Funds for Consolidated Landscaping and Lighting Assessment District (LLAD) No. 96 -1, Zones 1 through 18, for Fiscal Year 2026
RECOMMENDATION
That the City Council adopts two resolutions (Attachment II, III):
1. Approving the Final Engineer’s Report,
2. Confirming the Maximum Base Assessment (MBA) amounts,
3. Confirming the Fiscal Assessments,
4. Confirming the Assessment Diagrams,
5. Ordering the Levy and Collection of Fiscal Assessments,
6. Approving the Funding Recommendations, and
7. Appropriating Revenue and Expenditure budgets for Consolidated Landscape and Lighting Assessment District (LLAD) No. 96-1, Zones 1 through 18 for Fiscal Year 2026.
SUMMARY
The Landscaping and Lighting Act of 1972 requires an annual review and update of the engineer’s report to set the annual assessment rate for each benefit zone. Assessment rate recommendations are made based on annual expenses, required cash flow, and future capital repair and replacement requirements. Recommended annual assessment rates cannot exceed the Maximum Base Assessment (MBA) established when each zone was originally formed. The annual engineer’s report (Attachment IV) includes a detailed summary and budget for each of the eighteen benefit zones.
BACKGROUND
The Landscaping and Lighting Act of 1972 (Streets and Highways Code §22500) is a flexible tool used by local government agencies to form Landscaping and Lighting Assessment Districts (LLAD). These districts are formed to finance the cost of operating, maintaining, and servicing landscaping (including parks), and lighting improvements in public areas. In 1996, six separate LLAD benefit zones (1-6) were consolidated into one district by the adoption of Resolution No. 96-63. The new district was subsequently renamed, Consolidated Landscaping and Lighting Assessment District No. 96-1, and is known as the “District.” In subsequent years, zones 7-18 were individually created and annexed into the District.
This staff report and the attached engineer’s report provide assessment, benefit, and budget details for each of the established eighteen zones. The eighteen benefit zones are located throughout the City as shown on the following map.
The following table (Table 1) provides a summary of the LLAD benefit zones, including the year in which each zone was formed and the number of assessable parcels within each zone.
TABLE 1: DESCRIPTION OF BENEFIT ZONES
A B C D E
Zone Name/Location Year Formed Type of
Development
Number of Assessed
Parcels/SFE
1 Huntwood Ave. and Panjon St. 1990 Residential 30
2 Harder Rd. and Mocine Ave. 1991 Residential 85
3 Prominence 1992 Residential 155
4 Stratford Village 1995 Residential 174
5 Soto Rd. and Plum Tree St. 1995 Residential 38
6 Pepper Tree Park 1982 Industrial 11
7 Twin Bridges 1998 Residential 348
8 Capitola St. 1999 Residential 24
9 Orchard Ave. 2000 Residential 74
10 Eden Shores 2003 Residential 534
11 Stonebrae 2006, 2018, 2020 Residential 644
12 Eden Shores East (Spindrift) 2007, 2016 Residential 379 13 Cannery Place 2008 Residential 599
14 La Vista 2016 Residential 179
15 Cadence 2017 Residential 206
16 Blackstone 2016 Residential 157
17 Parkside Heights 2019 Residential 97
18 SoHay 2019 Residential 433
Total Assessed Parcels: 4,167
Self-Maintained.
DISCUSSION
Recommended changes to a zone’s annual assessment rate are based on annual expenses, required cash flow, and capital replacement requirements. When determining the annual assessment rate, staff looks at two things:
(1) Maximum Base Assessment (MBA) – The MBA is the maximum assessment rate that a parcel can be charged annually. This is established during the original formation of the zone. The annual MBA can only be increased if an inflation factor was included in the original formation document.
(2) Assessment Revenue – The assessment revenue is the annual amount of revenue collected by charging each parcel an assessment rate. The assessment rate recommendation depends on review of the following three items:
a. Annual Expenses – Annual operating and maintenance expenses are estimated based on past years’ experience and future years’ estimates. Expenses include staff administration, noticing, and annual reporting.
b. Cash Flow – This is the amount of “cash” needed to pay monthly invoices when revenue is not received monthly (assessment rates are received through property tax revenues collected by Alameda County, which are transmitted to the City three times a year (January, May, and June).
c. Capital Replacement – This is the “savings account” where funds are collected and reserved each year to fund future capital replacement items. Future capital expenses are estimated based on an inventory of capital items, their useful life, and future replacement cost.
Table 2 on the following page summarizes assessment information by zone. The table provides assessment details for each zone by describing the number of parcels, if there is an annual inflation adjustment calculation included, lists the MBA rate, the FY 2026 assessment rate, and the change between last year’s adopted assessment and this year’s recommended assessment.
For FY 2026, staff recommends no change to five Zones (5, 6, 15, 16 and 18) thirteen increases (1, 2, 3, 4, 7, 8, 9, 10, 11, 12, 13, 14, 16, and 17), based on annual expenses, required cash flow, and future capital repair and replacement.
A B C D E F G H I J
Zone Name/Location # Parcels CPI Adj FY 2026 Max Base
Assessment
FY 2026
Rate
FY 2025
Assessment
1 Huntwood Ave. and Panjon St. 30 No 295.83 247.73 235.94 Incr 11.80 5% 2 Harder Rd. and Mocine Ave. 85 No 193.39 139.52 135.45 Incr 4.07 3% 3 Prominence 155 Yes 1,175.66 1,101.36 1,069.29 Incr 32.07 3% 4 Stratford Village 174 No 180.00 133.27 126.93 Incr 6.34 5% 5 Soto Rd. and Plum Tree St. 38 No 258.67 258.67 258.67 None - 0% 6 Pepper Tree Park 11 No 2.61 2.61 2.61 None - 0% 7 Twin Bridges 348 Yes 1,229.68 698.08 664.83 Incr 33.25 5% 8 Capitola St. 24 Yes 879.48 215.97 205.68 Incr 10.29 5% 9 Orchard Ave. 74 Yes 234.82 40.34 38.41 Incr 1.93 5% 10 Eden Shores 534 Yes 1,400.28 365.16 344.49 Incr 20.67 6% 11a Stonebrae (Developed) 617 Yes 1,986.08 449.00 408.18 Incr 40.82 10% 11b Stonebrae (Undeveloped) 27 Yes 595.82 237.97 216.34 Incr 21.63 10% 12a Eden Shores - East 261 Yes 263.16 110.41 104.16 Incr 6.25 6% 12b Eden Shores East (Spindrift) 118 Yes 254.40 110.41 104.16 Incr 6.25 6% 13 Cannery Place 599 Yes 1,493.46 442.84 417.78 Incr 25.06 6% 14 La Vista 179 Yes 769.46 704.16 683.65 Incr 20.51 3% 15 Cadence 206 Yes 746.18 N/A N/A N/A N/A N/A 16a Blackstone (Zone A) 133 Yes 532.16 516.66 516.66 None - 0% 16b Blackstone (Zone B) 24 Yes 558.76 542.48 542.48 None - 0% 17 Parkside Heights 97 Yes 625.24 600.37 582.88 Incr 17.49 3% 18a SoHay Zone A (Developed) 192 Yes 453.04 300.00 300.00 None - 0% 18b SoHay Zone A (Undeveloped) 69 Yes 476.88 90.00 90.00 None - 0% 18c SoHay Zone B (Developed) 79 Yes 453.04 285.00 285.00 None - 0% 18d SoHay Zone B (Undeveloped) 93 Yes 135.91 85.50 85.50 None - 0% TABLE 2: ASSESSMENT AMOUNTS BY BENEFIT ZONE
Change from last year
Proposition 218 Compliance
For FY 2026, all fiscal assessments are proposed to be levied in compliance with Proposition 218 and do not require the noticing and balloting of property owners to obtain their approval. Any future increases in fiscal assessment amounts that exceed the MBA would require the noticing and balloting of property owners.
FISCAL AND ECONOMIC IMPACT
There is no impact to the General Fund (100) as monies related to these LLADs are preserved in dedicated special revenue funds. LLAD assessment revenue is collected, and expenditures are paid directly from their dedicated special revenue funds. All zones have adequate cash balances for annual expenses, cash flow, and capital replacement, as shown in Table 3.
STRATEGIC ROADMAP
This agenda item is not directly related to the Council’s Strategic Roadmap.
Zone Name/Location
Est FY 2025
Ending Cash
Balance
FY 2026
Revenue
FY 2026
Expenditures Change
Est FY 2026
Ending Cash
Balance
1 Huntwood Ave. and Panjon St. 12,914 8,019 11,967 (3,948) 8,965 2 Harder Rd. and Mocine Ave. 18,828 12,761 17,483 (4,721) 14,107 3 Prominence 232,193 182,472 259,991 (77,519) 154,674 4 Stratford Village 76,107 26,244 34,644 (8,399) 67,708 5 Soto Rd. and Plum Tree St. 22,787 10,618 11,788 (1,170) 21,617 6 Pepper Tree Park 106,030 13,188 12,330 857 106,887 7 Twin Bridges 431,137 241,801 245,864 (4,063) 427,073 8 Capitola St. 43,639 5,495 10,261 (4,766) 38,873 9 Orchard Ave. 9,881 2,974 4,593 (1,619) 8,262 10 Eden Shores 122,571 194,483 237,603 (43,120) 79,450 11 Stonebrae 349,058 284,837 302,317 (17,480) 331,578 12 Eden Shores East (Spindrift) 66,609 41,283 28,195 13,088 79,697 13 Cannery Place 701,454 263,254 370,074 (106,820) 594,634 14 La Vista 241,083 126,045 162,185 (36,141) 204,943 15 Cadence - - - - - 16 Blackstone 201,185 80,471 86,388 (5,917) 195,268 17 Parkside Heights 192,557 60,246 54,251 5,995 198,551 18 SoHay 298,093 125,156 105,948 19,208 317,301 3,126,125 1,679,345 1,955,881 (276,536) 2,849,589 Self-Maintained.
TABLE 3: ESTIMATED CASH BALANCE CHANGES PER BENEFIT ZONE Cash Balance:
PUBLIC CONTACT
City staff: 1) mailed a postcard to all affected property owners to provide details of their recommended FY 2026 assessment rate and to alert them to two Council meetings where they could provide input (June 3 and June 24); 2) held a virtual meeting on May 28 via Zoom; and 3) will publish a printed legal notice in the East Bay Times on or before June 14, 2025.
NEXT STEPS
Following If the City Council adopts the two attached resolutions (Attachment II and III), the Final Engineer’s Report (Attachment IV) will be approved, the revenue and expenditure budgets will be appropriated, and the final Assessor’s tax roll will be prepared and filed with the County Auditor’s Office allowing the assessments to be included in the FY 2026 tax roll. The draft assessment rolls are included (Attachment V) but are under review and will be updated in July to allow up-to-date information to be included for developing zones. Once updated in July, a copy will be provided to the City Clerk and County Assessor.
Prepared by: Manny Grewal, Management Analyst
Recommended by: Todd Rullman, Maintenance Services Director Approved by:
Michael Lawson, J.D.
Acting City Manager