Fiscal Year 2027 ENGINEER’S REPORT
City of Hayward
Maintenance District No. 1
June 2026
Final Report
ATTACHMENT IV
City of Hayward
Maintenance District No. 1
Engineer’s Report FY 2027
Page i
City of Hayward
City Council
Mark Salinas, Mayor
George Syrop, Mayor Pro Tempore
Angela Andrews, Council Member
Ray Bonilla Jr., Council Member
Dan Goldstein, Council Member
Julie Roche, Council Member
Francisco Zermeño, Council Member
Clerk of the Council
Miriam Lens
City Manager
Jennifer Ott
Maintenance Service Director
Todd Rullman
City Attorney
Michael Lawson
Engineer of Work
SCI Consulting Group
City of Hayward
Maintenance District No. 1
Engineer’s Report FY 2027
Page ii
Table of Contents
Introduction ................................................................................................................. 1 Overview.................................................................................................................................... 1 Legislative Analysis .................................................................................................................... 3 Plans and Specifications ............................................................................................... 4 Introduction ............................................................................................................................... 4 Description of Improvements.................................................................................................... 4 Fiscal Year 2027 Estimate of Cost and Budget .............................................................. 6 Estimate of Costs ....................................................................................................................... 6 Method of Apportionment ........................................................................................... 9 Assessment ................................................................................................................ 10 Vicinity Map ............................................................................................................... 12 Assessment Diagram .................................................................................................. 13 Appendix A - Assessment Roll .................................................................................... 15
City of Hayward
Maintenance District No. 1
Engineer’s Report FY 2027
Page iii
List of Figures
Figure 1 – Capital Improvements ..................................................................................................... 4 Figure 2 – 2027 Estimate of Cost ..................................................................................................... 8
City of Hayward
Maintenance District No. 1
Engineer’s Report FY 2027
Introduction
Overview
On January 5, 1993, by Resolution No. 93 -010, the City Council approved the vesting tentative map of Tract 6472, which authorized the subdivision of land on both sides of Stratford Road into 148 single-family home lots. Conditions of approval for Tentative Map Tract 6472, which included Final Tract Maps 6472, 6560, 6682 and 6683, included provisions for storm drainage improvements and construction of an approved stormwater pumping facility. The drainage area and the stormwater pumping facility were analyzed in documents prepared by Wilsey & Ham, Civil Engineers. These documents indicated the following: the drainage basin includes 29.1 acres, of which 24.7 acres are residential, 1.9 acres are for a park site, and 2.5 acres are for the collector streets associ ated with Stratford Road and Ruus Lane. Pacheco Way does not drain into this drainage basin system nor does the industrial property to the south.
In addition to the 143 lots identified above, final Tract Map 6682, with a total of 31 lots located immediately to the east of Chutney Road, was also approved. Therefore, the total number of residential lots in the drainage basin is 174. In addition to the residential lots, there is a park located on one parcel of land.
On April 18, 1995, the City Council approve the preliminary Engineer’s report, and on May 23, 1995, a public meeting was held to allow affected property owners an opportunity to speak. On June 6, 1995, by Resolution No. 95 -103, the City Council ordered the formation of Maintenance District No. 1 to provide for the operation and maintenance of the storm drainage improvements and the stormwater pumping facility to serve the drainage basin. The FY 1996 Engineer’s Report (formation report) included a FY 1996 Engineer’s Cost Estimate of $42,686.37.
A Storm Water Lift Station (SWLS) was constructed to pump storm water run-off for the developed area which is adjacent to the Alameda County Flood Control and Water Conservation District's (“Flood Control District”) Line B, Zone No. 3A. The plans for the l ift station were approved by the City and the Flood Control District. The SWLS was designed with capacity for only the development of the area encompassing the 174 parcels. No added capacity was constructed for run -off from other areas such as the Georgian Manor and Spanish Ranch Mobile Home Parks, which are presently served by a privately owned and operated pumping facility located within each park.
City of Hayward
Maintenance District No. 1
Engineer’s Report FY 2027
An agreement between the City and the Flood Control District transferred ownership of the SWLS to the Flood Control District. The agreement states that the Flood Control District concurred with the SWLS transfer subject to the City providing the Flood Cont rol District with the funds to operate, maintain, and provide for capital equipment replacement and for modifications that may become necessary for the optimal performance of the SWLS.
Each year the City evaluates the need to increase the annual assessment to ensure there are adequate funds to continue to provide proper operation, maintenance, and capital replacement of the storm water pumping facilities within Maintenance District No. 1. As part of this effort, no later than December 1, the Flood Control District is required to furnish the City with an itemized estimate of the cost to operate, maintain, and supplement the capital equipment replacement fund for the fiscal year commencing on the next July 1.
Should the capital equipment replacement fund be inadequate to cover unscheduled/emergency repairs, equipment replacement or modifications that are found to be necessary for the normal and safe performance of the Storm Water Lift Station (SWLS), the Flood Control District will provide the City with written notice of the need for additional funding.
In past years, there has not been sufficient funds to replace the Maintenance District No. 1 capital facilities when they reach the end of their useful lives.
On April 21, 2026, by Resolution No. 26-057 1, the City Council ordered the formation of the Stratford Village Flood Control Facilities Improvement Assessment District (MD1 -2026) following a successful property -owner ballot proceeding conducted pursuant to Article XIIID of the California Constitution. MD1-2026 levies a supplemental assessment in the amount of $97.82 on the same 174 parcels in Maintenance District No. 1 to fund an annual operations budget augmentation and the “2030 Pump Replacement” dedicated capital fund. Beginning with FY 2027, the original 1995 Maintenance District No. 1 assessment and the MD1 -2026 assessment are administered together as a combined annual levy on each parcel under this Engineer’s Report.
The original 1995 maximum base assessment of $243.92 per parcel remains fixed an d has no CPI mechanism; the MD1-2026 component carries an annual CPI-U (San Francisco-Oakland-Hayward, CA MSA) adjustment, capped at 3% per year, applied to the sum of the two assessments. The methodology, benefit findings, and assessment apportionment for the MD1-2026 component are documented in the parallel MD1 -2026 Engineer’s Report dated April 2026 and are incorporated herein by reference.
1 https://hayward.legistar.com/LegislationDetail.aspx?ID=7987059&GUID=695376BE-CF60-4A88-8184- 0DFF75ADF81A&Options=&Search=
City of Hayward
Maintenance District No. 1
Engineer’s Report FY 2027
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 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 the capital costs or maintenance and operation expenses for sidewalks, streets, sewers, water, flood control, drainage systems, or vector control on or before November 6, 19 96, shall be exempt from the procedures and approval process of Proposition 218, unless the assessments are increased.
Maintenance District No. 1 imposes an assessment exclusively for flood control and drainage improvements. 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 increased by the prior year’s change in the Consumer Price Index. Therefore, based upon the review of the City Attorney, imp osing 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 2027 assessment rate and to alert them to three community meetings where they could provide input (May 27, June 2, June 16); and 2) published a legal notice in the East Bay Times on or before June 6, 2026.
On June 16, 2026, 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 2027 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. 1
Engineer’s Report FY 2027
Plans and Specifications
Introduction
The annual Engineer’s Report includes: (1) a description of the improvements to be operated, maintained, and serviced; (2) an estimated budget, (3) the maximum base assessment rate, and (4) a listing of the proposed collection rate to be levied upon each assessable lot or parcel.
Description of Improvements
The facilities, which have been constructed within the City of Hayward's Maintenance District No. 1 boundaries, and those which may be subsequently constructed, will be operated, maintained, and serviced and are generally described as follows:
The Stratford Village Storm Water Lift Station (SWLS):
2 - 15 H.P. Pumps
1 - 5 H.P. Pump
1 - 3 H.P. Dewatering Pump
1 - Generator
1 - Supervisory Control and Data Acquisition (SCADA) System 1 - Masonry Building to House the SCADA System and Generator The operation and servicing of these facilities include but are not limited to personnel; electrical energy; materials, including diesel fuel and oil; hazardous materials clean up; and appurtenant facilities as required to provide sufficient run-off capacity.
These existing facilities are approximately 30 years old. A recent evaluation of the flood control facilities shows that various elements of the facility need repair, replacement, or rehabilitation.
Those improvements are detailed below in Figure 1.
Figure 1 – Capital Improvements
Element Cost Estimate
Evaluation / Design 41,560.00$
SCADA Upgrades 255,000.00
Pump Rehabilitation 49,248.00
Other Improvements 33,241.00
TOTAL 379,049.00$
City of Hayward
Maintenance District No. 1
Engineer’s Report FY 2027
The Improvements will include the installation and maintenance of the Stratford Village Storm Water Lift Station as referenced above, as well as financing costs and other expenses associated with the financing for the improvements, and incidental expenses. “Installation” means the construction or installation of improvements, including, but not limited to, land preparation, such as grading, leveling, cutting, and filling.
Maintenance means the furnishing of services and materials for the ordinary and usual operations, maintenance, and servicing of the SWLS, including repair, removal or replacement of all or part of any of the SWLS.
City of Hayward
Maintenance District No. 1
Engineer’s Report FY 2027
Fiscal Year 2027 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, mainte nance and servicing of the storm drainage improvements and storm water pumping station 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.
MD1 Assessment
Tract No. 6472, 6560, 6682, 6683
Formed: June 6, 1995
Resolution Number: 95-103
FY 2027
MD1-2026 Assessment
Formed: April 21, 2026
Resolution Number: 26-057
FY 2027 (Base Year)
MD1 Maximum Base Assessment Rate: $243.92
Assessment Amount per Parcel: $243.92
Number of Parcels: 174
Assessment Income: $42,442.08
MD1-2026 Maximum Base Assessment Rate: $97.82
Assessment Amount per Parcel: $97.82
Number of Parcels: 174
Assessment Income: $17,020.23
Combined FY 2027 Levy (per parcel)
Combined Assessment per Parcel ($243.92 + $97.82): $341.74 Combined Assessment Income (174 parcels): $59,462.31
The following is an overview of the FY 2027 assessment district:
Maximum Base Assessment (MBA) Rate: is unchanged from the original amount of $243.92 per parcel, set when the District was created. The supplemental MD1-2026 assessment adds a FY 2027 base-year maximum of $97.82 per parcel, bringing the combined maximum to $341.74 per parcel for FY 2027.
City of Hayward
Maintenance District No. 1
Engineer’s Report FY 2027
Annual CPI increase: the maximum base assessment amount cannot be increased annually based upon the prior year’s change in the CPI. However, the supplemental MD1-2026 component does carry an annual CPI-U (San Francisco-Oakland-Hayward, CA MSA) adjustment, capped at 3% per year, applied to the sum of the existing 1995 assessment and the MD1-2026 assessment. The February-to-February CPI is used, with any CPI in excess of 3% banked for application in subsequent years when CPI is below 3%. A negative CPI is treated as 0.0%.
Assessment revenue: the FY 2027 amount needed to operate and maintain the facilities and contribute to the capital reserve is: $59,462.31, comprising $42,442.08 from the 1995 MD1 assessment and $17,020.23 from the MD1-2026 supplemental assessment.
Annual assessment charge: each of the 174 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 2027 combined per-parcel charge is $341.74, comprising the 1995 MD1 charge of $243.92 (unchanged from the FY 2026 amount and at the maximum base assessment) and the MD1-2026 base-year charge of $97.82. Each component is at its maximum authorized rate and is sufficient for maintaining levels of service, contributing to the capital reserve, and funding the 2030 Pump Replacement program.
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.
City of Hayward
Maintenance District No. 1
Engineer’s Report FY 2027
Figure 2 – 2027 Estimate of Cost
City of Hayward
MD1 - Stratford Pump Station (Pacheco Wy., Stratford Rd., Russ Ln., & Ward Crk.) Fund 270, Project 03745
MD1 Established 1993 - 174 Parcels
MD1-2026 Established 2026 - 174 Parcels
FY 2025 FY 2026 FY 2027 FY 2028
Budget Detail Actual Estimated Proposed Projected
Assessment (MD1)
Maximum Base Assessment 243.92 243.92 243.92 251.24 Annual Per Parcel Assessment 243.92 243.92 243.92 251.24 # of Parcels 174 174 174 174 Total MD1 Assessment 42,442 42,442 42,442 43,715 Assessment (MD1-2026)
Maximum Base Assessment - - 97.82 100.75 Annual Per Parcel Assessment - - 97.82 100.75 # of Parcels - - 174 174 Total MD1-2026 Assessment - - 17,021 17,531 Total Combined Assessment - - 59,463 3,050,446 Revenue
41210 - Annual Assessment Revenue 42,149 42,442 59,463 61,247 County Tax Collection Fee (1.7%) (722) (722) (1,011) (1,041) 44110 - Other (Interest) 3,787 3,787 3,787 3,787 Total Revenue ` 45,508 62,239 63,993 Expenditure
61510 - Utilities: PGE 2,921 3,574 4,000 4,000 62210 - Property Owner Noticing 359 - 110 110 62242 - Annual Reporting 768 1,253 805 805 Pump Station O&M - ACFCD 20,923 - - - Proposition 218 7,500 - - - City Administration 3,658 - 843 843 Total Expenditure 36,130 4,827 5,758 5,758 Account Balance
Beginning Account Balance 52,231 61,316 101,997 158,478 Net Change (Revenue - Expenditures) 9,085 40,681 56,481 58,235 Ending Account Balance 61,316 101,997 158,478 216,712
City of Hayward
Maintenance District No. 1
Engineer’s Report FY 2027
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 to finance the maintenance and operation of drainage and flood control services, which include the operation, maintenance, and servicing of pump stations.
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 proportion al 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 land uses within Maintenance District No. 1 consist of 174 residential parcels and one park parcel. These parcels receive a special benefit in that the pumping station and the storm drains protect the residential parcels and park parcel from storm water flooding. Even though there are only minor structures located on the park parcel it does receive special benefit from flood control improvements and services.
It is estimated that all residential and park parcels derive similar benefits from the flood control improvements and services, therefore the method for spreading the annual costs is on a per parcel basis.
The projected Fiscal Year 2027 maintenance and operation for MD1 are estimated to be $59,463.
The annual FY 2027 operating expenses are estimated to be $5,758, with an annual contribution of $9,476.23 to the 2030 Pump Replacement dedicated capital fund and remaining fund allocated to reserves. The combined collection rate for Fiscal Year 2027 will be at the maximum authorized rate for each component, totaling $341.74 per parcel ($243.92 for the 1995 MD1 component and $97.82 for the MD1-2026 component).
City of Hayward
Maintenance District No. 1
Engineer’s Report FY 2027
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 10-10.25 of the Hayward Municipal Code, and in accordance with Resolution No. 26 -XXX, preliminarily approving the Engineer’s Report, as adopted by the City Council of the City of Hayward, on June 2, 2026, and in connection with the proceedings for; WHEREAS, 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 t he 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 Assessment 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 Estimate 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 2027. 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. 1
Engineer’s Report FY 2027
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 2027 for each parcel or lot of land within said Maintenance District No. 1.
Dated: May 31, 2026
Engineer of Work
By ____________________________
John W. Bliss, License No. C052091
City of Hayward
Maintenance District No. 1
Engineer’s Report FY 2027
Vicinity Map
City of Hayward
Maintenance District No. 1
Engineer’s Report FY 2027
Assessment Diagram
The boundary of the City of Hayward's Maintenance District No. 1 is on file in the Office of the Hayward City Clerk and is incorporated in this report on page 13.
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 2027.
For additional information as to the bearings, distances, monuments, easements, etc. of subject subdivisions, reference is hereby made to Final Tract Maps No. 6472, 6560, 6682 and 6683 filed in the Office of the Recorder of Alameda County.
City of Hayward
Maintenance District No. 1
Engineer’s Report FY 2027
City of Hayward
Maintenance District No. 1
Engineer’s Report FY 2027
Appendix A - Assessment Roll
A list of names and addresses of the owners of all parcels within the City of Hayward's Maintenance District No. 1 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 Numbe rs as shown on the Assessment Roll on file in the Office of the Hayward City Clerk.