Neptune Drive Project Status

Neptune Drive Project Status

In this post, CivicMic provides the latest update for the City of San Leandro Neptune Drive Shoreline Flood Protection Project ("Neptune Drive Project").   The Neptune Drive Project for the construction of a new levee will be funded by special assessments added to the property tax bill of approximately 1,055 parcels that were recently designated by FEMA as being in the 100-year flood zone.  The new designation has resulted in the requirement by mortgage companies for costly flood insurance. The construction of the levee, in addition to another levee being built by the County, would cause FEMA to designate the parcels as no longer being in the flood zone and consequently, mortgage companies would no longer require flood insurance. Preliminary estimates show that the annual assessment amount would be lower than the flood insurance premium over time.

If you are familiar with this topic, please scroll down to view the Neptune Drive Project status.


If you are new to this topic, please click on the links below to read our previous posts with valuable background information.

What is a Benefit Assessment District?

Watch the Video of the Most Recent Community Meeting

Neptune Drive Assessment District Preliminary Data

Preliminary Assessments

Interactive Map of Parcels Represented in the Process (Find and click on your property)

Answers to Comments and Questions From Second Survey - Part 1

Answers to Comments and Questions From Second Survey - Part 2


Neptune Drive Project Status

CivicMic met with City staff in June to discuss the status of the project.  First, there are a few important points worth noting about this project:

  • FEMA will not update the maps for the 1,055 parcels as no longer being in the flood zone until the construction of both levees (City and County levees).  Completing the Neptune Drive project (City) alone does not result in FEMA updating the flood maps.  Under this scenario, mortgage companies would continue to require flood insurance until the completion of the County levee.
  • Also, the formation of the proposed assessment district alone does not cause FEMA to update the flood maps. Thus, the premature formation of the assessment district would result in unnecessary interest costs levied on the property tax bills.
  • Consequently, the timeline for the formation of the proposed assessment district is dependent on the status of the County project.

Projects status and next steps:

  • The County project went out to bid in May, but responses came back $2 million higher than expected. The County had budgeted $7 million for the project. The County rejected the bids.
  • The County is value engineering the project (hoping to reduce project costs) and bidding their project again in October/November.
  • Assuming a successful bid in October/November, the County could complete the project by the summer or fall of 2022.
  • Special note:  Construction of the County project can only occur in specific months of the year due to endangered species. The City project is not subject to endangered species restrictions.
  • The City project continues to move along the design phase.
  • Based on the new County timeline, the City project would now bid in February 2022 and be completed by the summer of 2022.  (Assuming the successful bidding of the County project in October/November).
  • Based on the new County timeline, the City would commence assessment district formation proceedings in the fall of 2021 for timely funding of the project and to maximize savings in interest costs to property owners.
  • CivicMic will meet with the City again in October/November after the County re-bids their project.

Click here to view the latest timeline for the proposed formation of the Neptune Drive Assessment District.

Want to receive updates?

Subscribe to receive updates via email and get a free copy of the NBS Primer on Special Financing Districts!

Your participation and that of your neighbors in the process is very important! Please use the “Share this:” buttons at the bottom to share this post with your neighbors.

Looking for more information?

Visit our main page for the City of San Leandro.

Share this:

Neptune Drive Project Cost Estimate

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top