Agenda Item No: N.6
AGENDA REPORT
DATE: October 21, 2025
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2025 -199 PW Budget Adjustment for Landscaping and Lighting Maintenance District No. 7 – Rolling Hills
Authorizing an Update to the Fiscal Year 2025 -2026 Landscaping and Lighting Maintenance District No. 7 – Rolling Hills Budget for Proposition 218 Engineering and Consulting Services
Funding Source: $32,946; LLMD No. 7 – Rolling Hills Fund
Contact: Chris Lewis, (707) 428-7089
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
The Public Works Department is requesting an update to the fiscal year (FY) 2025 -2026 Landscaping and Lighting Maintenance District (LLMD) No. 7 – Rolling Hills operating budget, increasing appropriations by $32,946 to cover the cost of Proposition 218 engineering and consulting services.
DISCUSSION
In 2023, the City conducted a community engagement and balloting process in accordance with Article XIII D of the California Constitution (also known as Proposition 218) to increase assessment rates in nine LLMDs that were projected to have a structural budget deficit.
The ballot was passed by property owners in the Gateway and Paradise Valley communities resulting in the formation of LLMDs No. 2023 -1 (Gateway) and No. 2023 -11 (Paradise Valley).
However, the ballot was not passed by property owners in the remaining seven LLMDs: No. 3 – Waterman, No. 5 – Smith Ranch (Rancho Solano), No. 6 – Peppertree, No. 7 – Rolling Hills, No. 8 – Kolob Estates, No. 12 – Downtown, and No. 13 – North Cordelia. As a result, services were reduced in these communities.
On May 20, 2025, the City Council directed staff to conduct a second Proposition 218 balloting process for LLMD No. 5 – Smith Ranch and LLMD No. 7 – Rolling Hills. On May 30, 2025, the City released a Request for Proposals (RFP) for the required assessment engineering and consulting services. The City received proposals fr om two companies: Willdan Financial Services (Willdan) and Harris & Associates. The City formed an ad hoc RFP Evaluation Committee consisting of three City staff members and two Landscape Ov ersight Committee (LOC) appointed representatives who were responsible for evaluating all submittals, conducting interviews, and selecting the top- ranked consultant . On July 7, 2025, the Evaluation Committee identified Willdan as the top - ranked consultant.
The City and Willdan negotiated a professional services agreement totaling $66,258, which includes $33,312 for LLMD No. 5 – Smith Ranch and $32,946 for LLMD No. 7 – Rolling Hills .
Approval of the attached resolution will aut horize an update to FY 2025 -2026 LLMD No. 7 – Rolling Hills budget increasing appropriations to cover the cost of Willdan’s engineering and consulting services. The budget increase will be allocated using the district’s fund balance which will reduce the availability of funds for services in future years.
Per Chapter 400, Section 3 of the City’s purchasing policy, t he professional services agreement with Willdan will be approved and executed by the purchasing officer (city manager).
FINANCIAL IMPACT
The total authorization for a one -time budget adjustment is $32,946 to increase appropriations in the FY 2025-2026 LLMD No. 7 – Rolling Hills operating budget (Fund 173).
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
On April 17, 2025, the LOC recommended that the City move forward with a Proposition 218 balloting process for LLMD No. 5 – Smith Ranch and LLMD No. 7 – Rolling Hills and appointed two representatives to assist the City with the consultant selection process. On August 28, 2025, the LOC supported the decision to execute a contract with Willdan for the required engineering and consulting services.
ALTERNATIVE ACTION
The council may choose not to authorize an update to the FY 2025-2026 LLMD No. 7 – Rolling Hills budget. However, the district will not have available budget to conduct the Proposition 218 balloting process.
COORDINATED WITH
Finance Department
STAFF CONTACT
Chris Lewis, Sr. Management Analyst
(707) 428-7089
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution