Staff Report
City Council
Item No. 2.A
Meeting Date: January 14, 2026
From: John A. Corella, Director of Public Works
Title: Sarah Street Area Assessment District Formation Project - Phase 2A Results
RECOMMENDATION:
This item is presented to the City Council to provide an update on the Phase 2A results of the Sarah Street Assessment District Project for discussion, information, and direction from the Council.
BACKGROUND:
Assessment District Phasing
The Assessment District Formation Flow Chart, attached to this report, outlines the steps required for an assessment district formation. The phases are summarized as follows:
Phase 1: Conduct outreach to property owners to solicit initial interest in forming an assessment district through letters, meetings, and individual discussions. Phase 2A: Prepare conceptual improvement plans and preliminary cost estimates and conduct an informational community meeting. Newsletters and postcard surveys with estimated assessment amounts are distributed to further gauge interest. Phase 2B: Provide additional outreach to property owners. Engage bond counsel to distribute formal petitions for assessment district formation. Phase 3: Prepare final assessment district plans, specifications, and cost estimates for construction. The city adopts the required resolutions of intention, distributes notices and ballots, conducts a public hearing, tabulates votes, and determines whether the assessment district proceeds or is rejected.
Phase 1
On January 4, 2023, the City Council approved an agreement with Woodard & Curran (Consultant) to provide Phase 1 Assessment District Support Services for infrastructure improvements, including sewer and related facilities. The consultant assisted the city with public outreach for the following areas:
Agua Caliente Trail Area
Sarah Street Area
Bochner Family Property
Following Phase 1 outreach, a majority of property owners expressed interest in advancing to Phase 2A. Based on this interest and direction from the City Council, city staff solicited proposals for Phase 2A services.
Phase 2A
On November 29, 2023, the City Council awarded a professional services agreement to Willdan Engineering, Inc. (Willdan) to provide Phase 2A preliminary design services for the combined Sarah Street area.
A community update meeting was held at City Hall on November 14, 2024, to inform property owners of the progress of the assessment district effort. Attendees included two representatives from Willdan, three property owners, and city staff.
At the meeting, Willdan presented an overview of the project, including the proposed scope of improvements, preliminary construction cost estimates, available financing mechanisms, and the assessment district formation process. A summary of the proposed improvements and feedback received for each area is provided below.
Agua Caliente Trail Area
The proposed improvements within the designated assessment district included street infrastructure, water and sewer systems, gas and electrical utilities.
Two property owners from the Agua Caliente Trail area attended the meeting and expressed concerns regarding the high preliminary assessment estimates. Based on this input, property owners in the area indicated they did not wish to proceed with the formation of the assessment district.
Bochner Family Property
Proposed improvements for the Bochner Family Property included sewer and electrical infrastructure, with improvements extended to the property line to allow for future connections upon development.
No representatives from this property attended the meeting; therefore, staff were unable to gauge interest or receive feedback.
Sarah Street Area
Proposed improvements for the Sarah Street Area were limited to sewer infrastructure, as all other utilities are already in place.
One property owner attended the meeting and stated interest in proceeding with the preliminary design for the sewer assessment district formation. Based on this limited feedback, staff determined additional outreach was necessary to assess interest among the remaining property owners in the Sarah Street area before making a recommendation.
Following the November 14, 2024, community update meeting, Willdan refined the project scope to focus exclusively on the Sarah Street area. The engineer’s opinion of probable cost was subsequently updated to reflect the revised scope.
On July 30, 2025, the city held a follow-up community meeting to further assess interest from Sarah Street property owners prior to distributing a newsletter and postcard survey and making a formal recommendation on whether to proceed with the assessment district formation. No community members attended the meeting.
On August 13, 2025, the City Council approved Amendment No. 1 to the professional services agreement with Willdan to extend the term of the agreement for the Sarah Street Assessment District Formation Project – Phase 2A, along with a budget amendment to carry over remaining project funds. The extension was necessary to complete additional outreach efforts, including hosting another community meeting, distributing a newsletter and postcard survey, and analyzing the level of interest in proceeding with assessment district formation.
DISCUSSION:
Following City Council approval of the amendment, Willdan prepared a newsletter and postcard survey to provide property owners with information on the assessment district formation process, estimated assessment amounts for the proposed improvements, a question-and-answer section, and instructions for responding. The newsletter and postcard survey are included as attachments to this staff report.
On October 28, 2025, city staff mailed the newsletter and postcard survey to nineteen (19) property owners in the Sarah Street area. The deadline to return the survey was November 14, 2025; however, no responses were received by that date.
On November 18, 2025, city staff received a call from one property owner who indicated that she did not support formation of the assessment district.
Given the lack of demonstrated property owner support for the assessment district formation, city staff recommend the City Council not proceed with Phase 2B of the project.
FISCAL IMPACT:
This item has no fiscal impact to the city, as it is presented for discussion, information, and direction only.
FIVE-YEAR STRATEGIC PLAN:
Goal B: Community Investment
Objective B-9: Continue to work on Septic to Sewer grant. Make sure Sarah St. is included and other economic development efforts.
ATTACHMENTS:
1. Assessment District Formation Flow Chart
2. Sarah Street Area Phase 2A – Newsletter
3. Sarah Street Area Phase 2A – Postcard Survey