a. Employment and Training
i. To the greatest extent feasible, and consistent with existing Federal, state, and local laws and regulations, contractors covered by this subpart will ensure that employment and training opportunities arising in connection with Section 3 projects are provided to Section 3 Workers within the metropolitan area (or nonmetropolitan county) in which the project is located. ii. Where feasible, priority for opportunities and training should be given to:
1. Section 3 Workers residing within the service area or the neighborhood of the project; and
2. YouthBuild participants.
b. Contracting
i. To the greatest extent feasible, and consistent with existing Federal, state, and local laws and regulations, recipients covered by this subpart shall ensure contracts for work awarded in connection with Section 3 projects are provided to business concerns that provide economic opportunities to Section 3 Workers residing within the metropolitan area (or nonmetropolitan county) in which the project is located.
ii. Where feasible, priority for contracting opportunities should be given to:
1. Section 3 business concerns that provide economic opportunities to Section 3 Workers residing within the service area or the neighborhood of the project; and
2. YouthBuild programs.
F. The contractor will certify that any vacantemployment positions, including training positions, that are filled (1) after the contractor is selected but before the contract isexecuted, and (2) with persons other than those to whom the regulations of 24 CFR part 75 require employment opportunities to be directed, were not filled to circumvent the contractor's obligations under 24 CFR part 75.
G. Noncompliance with HUD's regulations in 24 CFR part 75 may result in sanctions, termination of this contract for default, and debarment orsuspension from future HUDassisted contracts.
H. With respect to work performed in connection with Section 3 covered Indian housing assistance, Section 7(b) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450e) also applies to the work to be performed under this contract. Section 7(b) requires that to the greatest extent feasible (i) preference and opportunities for training and employment shall be given to Indians, and (ii) preference in the award of contracts and subcontracts shall be given to Indian organizations and Indian-owned Economic Enterprises. Parties to this contract that are subject to the provisions of Section 3 and section 7(b) agree to comply with Section 3 to the maximum extent feasible, but not in derogation ofcompliance with Section 7(b).
J. Contractor will retain all documentation, contracts, and records for a minimum of five years.
Federal Section 3
Form 4-Section 3 Clause
(Continued)
Labor Hours Tracking Form
Section 3 Workers and Targeted Section 3 Workers
This form -or- a similar spreadsheet must be submitted with the weekly Certified Payroll.
All worker hours (Section 3 or not) should be reported.
Date: __________________________________________________ Week Ending Reporting:_______________________________________________________________ Project Name:_________________________________________________________________________ Project Address:________________________________________________________________________ Business Name/Contractor-Subcontractor Name: ____________________________________________ Business/Contractor-Subcontractor Address: ________________________________________________ Name and Position of Person Preparing Report:_______________________________________________ Name of Employee Worker
Classification
Section 3
Worker
Yes or No
Targeted
Section 3
Worker
Yes or No
Total
Hours
Worked
Name of Employee Worker
Classification
Targeted
Section 3
Worker
Yes or No
Section 3
Worker
Yes or No
Hours
Worked
TOTAL
Federal Section 3
FORM 5-Quarterly Project Compliance Report
This form is required for all Section 3-triggered projects (over $300,000) and must besubmitted according to the following schedule:
Quarterly
January – March: Due April 15th
April – June: DueJuly 15th
July – September: Due October 15th
October – December: DueJanuary 15th
Final
Mustcover the entire project from start date to
completion date. Final report is due 30 days
after completion.
Project Name: Contractor:
Project Location: Report Type: Quarterly Final
Reporting Period Start Date: Reporting Period End Date:
I. SECTION3 CONTACT INFORMATION
II. SECTION 3 HOURS WORKED – Report the number of Section 3 hours for this reporting period. Attach time records to support the information provided.
A. Total hours worked this period by all
workers
B. Number of Section 3
hours worked this period
% Section 3 hours
(Divide column B by column A)
III. TARGETED SECTION 3 HOURS WORKED – Report the number of targeted Section 3 hours for this reporting period.
Attach time records to support the information provided.
A. Total hours worked this period by all
workers
B. Number of targeted Section 3 hours
worked this period
% Targeted Section 3 hours
(Divide column B by column A)
IV.QUALITATIVE EFFORTS – If this report indicates numeric goals were not met, attach FORM 4 describing any qualitative efforts madeto increase Section 3 participation for this reporting period.
V. ADDITIONAL ATTACHMENTS – For the final Section 3 compliance report, attach BUSINESS ENTERPRISE INFORMATION FORM and FORM 3 with updated information.
I declare that all statements contained in this form and any accompanying documents are true and correct, and made with full knowledge that all statements given are subject to investigation and that any false or dishonest answer to any question may be grounds for denial or revocation of funding or other penalties as prescribed under 18 U.S. Code § 1001.
Signature: Date:
Print Name: Title:
Phone: Email:
Contractor Section 3 Point of Contact:
Section 3 Process
24 CFR 75
Meeting
Owner/Developer/Contractor attends pre-construction
meeting.
Contract
Contract is granted. Contractors review Section 3 Plan
provided in order to comply with Section 3 regulations.
Clause
Section 3 Clause is incorporated into contract and in all future subcontractor contracts the Owner/Contractor
creates. Contractor ensures all subcontractors are aware of Section 3 requirements and responsibilities.
Advertise & Document
Contractor advertises job opportunities. Contractor posts Section 3 information at job site. Contractor submits all documentation of compliance efforts.
Monthly Reporting
Contractor submits the labor hours tracking form with
each pay request.
Yearly Reporting
Contractor submits Section 3 Summary Report as
requested by HCD.
Section 3 Service Area Map
Section 3 Service Area Map
Item No. 10(A)
REPORT TO THE CITY COUNCIL
DATE: JUNE 23, 2026
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: JOSE ARREOLA, CITY MANAGER
RE: CONSIDERATION OF RESOLUTION APPROVING AND ORDERING
THE LEVY AND COLLECTION OF SPECIAL ASSESSMENTS FOR
UNPAID BILLING FOR REFUSE AND RECYCLING SERVICES
RECOMMENDATION:
It is recommended the City Council: 1) open the public hearing, allow public testimony regarding objections to proposed special assessments for delinquent accounts for Waste Management (WM) refuse/recycling collection services debt transferred to the City, close the public hearing; and 2) adopt a Resolution approving the list of unpaid billing debt accounts transferred to the City from Waste Management (WM) for refuse and recycling collection services invoiced January 1, 2025 through December 1, 2025 and ordering the levy and collection of assessments to the owners of properties that received the collection services associated with the unpaid debt accounts.
BACKGROUND:
At the January 23, 2024 meeting, the City Council adopted an Ordinance establishing a special assessment for refuse and recycling service delinquent accounts and a Memorandum of Understanding (MOU) with WM setting forth the responsibilities of both parties in the process. The purpose of the assessment process was to minimize refuse and recycling service charges by eliminating unpaid debt being passed on to other customers and to fulfill the provisions of the City’s franchise agreement with WM.
Section 7.5 of the 2017 Revised and Restated Franchise Agreement stipulates that the City intended to adopt a new Ordinance in the Municipal Code to provide for the transfer of WM’s delinquent charges to property taxes as a special assessment or property lien. If the City failed to adopt the special assessment, WM would then have the option to recover losses due to delinquent customer accounts through an adjustment to the customer rate caps, which was implemented in 2021.
CITY COUNCIL
CONSIDERATION OF RESOLUTION APPROVING AND ORDERING THE LEVY
AND COLLECTION OF SPECIAL ASSESSMENTS FOR UNPAID BILLING FOR
REFUSE AND RECYCLING SERVICES
JUNE 23, 2026
PAGE 2 OF 4
Property owners were sent notices of the proposed change prior to consideration of the Ordinance. A phased approach was approved to provide time for landlords to adjust their rental procedures. Refuse and recycling charges covered under the special assessment requirements did not take effect until the July 1, 2024 invoices.
The process requires a public hearing be held by the City Council prior to approving the final assessments, which is scheduled at the June 23 rd meeting.
DISCUSSION:
Under the process, four notices were then sent by WM to both customers and property owners with delinquent accounts. After the four warnings, the number of delinquent residential accounts is 214. There are 11 commercial accounts on the list.
An additional notification of the public hearing was distributed to each property owner and customer impacted more than 10 days prior to the hearing date.
The remaining debt was transferred to the City in a list transmitted on June 2, 2026.
The initial debt is limited to the unpaid amounts invoiced in 2025. A list of each account customer, property owner and total amount due is provided in Exhibit A of the Resolution. A $40 City administrative fee to cover City costs for the process and a .25% fee charged by the County will be added to the WM unpaid fees listed.
The purpose of the public hearing is to provide an opportunity for anyone listed with outstanding debt to identify if any errors were made on the list before they are submitted to the County tax collector. For the City to order the levy and collection of the assessments, the debt had to be transferred from WM to the City as the franchisor. Therefore, payments for the debt can no longer be made to WM to remove the debt. The only option for removing debt at this time would be to demonstrate that the payment has already been made.
COST ANALYSIS:
The cost of the distribution of the public hearing notices will be incurred by WM. The City’s staff cost will be reimbursed by the administrative fee.
ENVIRONMENTAL REVIEW:
The special assessment process is not considered a “project” for the purposes of the California Environmental Quality Act (CEQA). Therefore, the Ordinance does not have the potential for resulting in either a direct physical change to the environment or a reasonably foreseeable indirect physical change in the environment. No further action is required under CEQA for City Council action.
CITY COUNCIL
CONSIDERATION OF RESOLUTION APPROVING AND ORDERING THE LEVY
AND COLLECTION OF SPECIAL ASSESSMENTS FOR UNPAID BILLING FOR
REFUSE AND RECYCLING SERVICES
JUNE 23, 2026
PAGE 3 OF 4
ALTERNATIVES:
The following alternatives are presented for City Council consideration:
1. Adopt the Resolution;
2. Modify the list and adopt the Resolution;
3. Do not adopt Resolution and reject the special assessments; or
4. Provide staff other direction.
ATTACHMENTS:
1. Resolution
4905-6361-2597 v1
RESOLUTION NO. 2026-5095
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KING,
CALIFORNIA, CERTIFYING COMPLIANCE WITH STATE LAW AND
APPROVING THE SPECIAL ASSESSMENT AND LIEN AGAINST THE
PROPERTIES RESIDING WITHIN THE CITY LIMITS WITH UNPAID
SOLID WASTE BILLING ASSIGNED TO THE CITY
BY WASTE MANAGEMENT
WHEREAS, the City of King (“the City”) has the authority, under its police power, to enact regulations for the public health, safety, peace, morals, and welfare of the City, California Constitution Article XI, section 7; and
WHEREAS, the City finds that, in addition to the filing of civil collection actions by the city attorney, the use of liens collected as personal obligations against property owners and the use of special assessments on real property will assist in the collection of unpaid solid waste fees, administrative costs, county fees and costs, and late fees assessed pursuant to the state of California authorized lien and special assessment process; and
WHEREAS, the City further finds that collection of unpaid solid waste fees, administrative costs, county fees and costs, and late fees is important in deterring future violations and maintaining the health and safety of the City by ensuring continued solid waste services and preventing other residents from being forced to pay for the unpaid solid waste fees as part of annual rate increases by Waste Management; and WHEREAS, the City has the authority to make the expense of unpaid solid waste fees, administrative costs, County of Monterey fees and costs, and late fees a lien against the property on which it is maintained and a personal obligation against the property owner, in accordance with California Government Code Sections 38790.1 and 25831; and
WHEREAS, the City has the authority to make the cost of unpaid solid waste fees, administrative costs, county fees and costs, and late fees upon a parcel of land a special assessment against that parcel, in accordance with California Government Code Sections 38790.1 and 25831; and
WHEREAS, the procedures established in King City Municipal Code shall be used to complement existing administrative or judicial remedies which may be pursued to address unpaid billing; and
WHEREAS, the Property Owners within this Resolution are the owner(s) of record the properties located within the City of King; and
WHEREAS, the Property Owners were issued notices to pay the unpaid solid waste billing pursuant to the King City Municipal Code; and PAGE 2 OF 5
4905-6361-2597 v1
WHEREAS, the Property Owners who failed to pay the unpaid solid waste billing as required by the King City Municipal Code were issued multiple notices of their failure to pay, the amount of the unpaid solid waste fees, where to make payment of the unpaid solid waste fees to avoid the lien and special assessment process; and WHEREAS, the Property Owners failed to pay the unpaid solid waste billing; and WHEREAS, the Property Owners caused the City to incur the costs associated with the lien and special assessment process to recover the unpaid solid waste billing which was assigned to the City by Waste Management; and WHEREAS, the King City Municipal Code authorizes the City to place a lien and special assessment on real property when solid waste fees have not been timely paid and the unpaid billing is assigned to the City by Waste Management.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF KING,
CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. The City Council finds the Facts set forth above to be true and correct, and by this reference incorporates each as an integral part of this Resolution.
SECTION 2. The total amount due and payable to the City by each property owner is attached hereto as Exhibit “A.”
SECTION 3. These amounts contained within Exhibit “A” remain unpaid. A special assessment and lien in these amounts shall be placed against each of the properties identified within Exhibit “A” of this Resolution; the special assessments shall further accrue penalties and fines until the special assessment is paid in full.
SECTION 3. The City Manager, or his/her designee, is hereby authorized to place additional special assessments on the properties identified within Exhibit “A” of this Resolution as may be needed to secure payment of the unpaid solid waste billing and/or costs being further incurred by the City; including the fees and costs charged by the County of Monterey to place these liens and special assessments on the properties listed within Exhibit “A.”
SECTION 4. The City Manager is directed to take all action necessary to implement this Resolution.
SECTION 5. The City hereby certifies that it has, without limitations, complied with all legal procedures and requirements necessary for the levying and imposition of the general or special taxes, assessments, or property-related fees or charges identified in Exhibit “A,” regardless of whether those procedures or requirements are set forth in the Constitution of the State of California, in State statutes, or in the applicable decisional law of the State of California.
PAGE 3 OF 5
4905-6361-2597 v1
SECTION 6. The City further certifies that, except for the sole negligence or misconduct of the County of Monterey, its officers, employees, and agents, with regards to the handling of the USB or electronic file identified as Exhibit “A,” the City shall be solely liable and responsible for defending, at its sole expense, cost, and risk, each and every action, suit, or other proceeding brought against the County of Monterey, its officers, employees, and agents for every claim, demand, or challenge to the levying or imposition of the general or special taxes, assessments, or property related fees or charges identified in Exhibit “A” and that it shall pay or satisfy any judgment rendered against the County of Monterey, its officers, employees, and agents on every such action, suit, or other proceeding, including all claims for refunds and interest thereon, legal fees and court costs, and administrative expenses of the County of Monterey to correct the tax rolls.
SECTION 7. The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original Resolutions. This Resolution shall be effective immediately upon passage and adoption.
I HEREBY CERTIFY that the foregoing resolution was passed and adopted by the City Council of the City of King at a regular meeting thereof held on the 23 rd day of June
2026, by the following vote:
AYES:______________________________________________________________ NOES:______________________________________________________________ ABSTAIN:___________________________________________________________ ABSENT:____________________________________________________________ ATTEST
_________________________
Erica Sonne, City Clerk
CITY OF KING
By: _____________________________
Mike LeBarre, Mayor
APPROVED AS TO FORM:
By: _____________________________
Roy C. Santos, City Attorney
PAGE 4 OF 5
4905-6361-2597 v1
I, ______________________________, City Clerk of the City of King, California, DO HEREBY CERTIFY that the foregoing is a true and accurate copy of the Resolution passed and adopted by the City Council of the City of King on the date and by the vote indicated herein.
PAGE 5 OF 5
4905-6361-2597 v1
EXHIBIT A
Exhibit A
Item No. 10(B)
REPORT TO THE CITY COUNCIL
Date: JUNE 23, 2026
To: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: JEFF VAN DEN EIKHOF, CONSULTANT CITY ENGINEER
THROUGH: JOSE ARREOLA, CITY MANAGER
Subject: CONSIDERATION OF RESOLUTION APPROVING THE ANNUAL
ASSESSMENT REPORT AND ORDERING THE LEVY AND
COLLECTION OF ASSESSMENTS FOR THE RIVERVIEW GARDENS
LANDSCAPE MAINTENANCE DISTRICT FOR FISCAL YEAR 2026-27
RECOMMENDATION:
It is recommended that the City Council adopt Resolution No. 2026-5092, approving the Final Engineer’s Report and ordering the levy and collection of assessments for the Riverview Gardens Landscape Maintenance District, pursuant to the provisions of the Landscaping and Lighting Act of 1972 of the Streets and Highways Code of the State of California.
BACKGROUND:
The Riverview Gardens Landscape Maintenance District was formed in 1998 for the purpose of providing maintenance services for landscaping and appurtenant improvements in the Riverview Gardens development and assessing those properties that benefit from this service. Each year, the City Council must, by law, order the preparation of an Engineer's Report describing the existing and proposed maintenance services and conduct a public hearing to establish and order the amount of assessment for the next fiscal year.
At the time the District was formed, the engineer included an annual assessment adjustment equal to the April Consumer Price Index for the San Francisco-OaklandHayward areas (“CPI”). Each year since the District was formed, a new maximum assessment was established by applying the April CPI to the Maximum Assessment for the prior year. The City may assess the District parcels any amount up to the established Maximum Assessment for that year, but may not exceed that amount. Included in the Engineer’s Report is a table showing the Maximum Assessment and the Actual Assessment for each year since the District was formed.
CITY COUNCIL
CONSIDERATION OF RESOLUTION APPROVING THE ANNUAL ASSESSMENT
REPORT AND ORDERING THE LEVY AND COLLECTION OF ASSESSMENTS FOR
THE RIVERVIEW GARDENS LANDSCAPE MAINTENANCE DISTRICT FOR FISCAL YEAR 2026-27
JUNE 23, 2026
PAGE 2 OF 3
At the first Council meeting for this item, Council approved a rate based on a 4% CPI adjustment. The actual April 2026 CPI is 3.79%. This requires reducing the initially approved assessment rate from $498.10 to $497.12. The reduced assessment rate, reflecting the actual April CPI, has been updated in the attached Engineer’s Report.
DISCUSSION:
On May 12, 2026, the City Council adopted Resolutions to provide notice to the members of the District and citizens of the City of King of the City’s intent to again levy and collect assessment fees for the previously formed landscaping and lighting district. In addition, the Resolutions establish that the City Council: (1) finds that the public interest and convenience requires, and (2) declares its intention, to order the levy of and to collect assessments against the assessable lots and parcels of property within an existing assessment district pursuant to the provisions of the Act for the fiscal year commencing July 1, 2026 and ending June 30, 2027 to pay for the costs and expenses of the improvements described in the Resolution.
The District is designated as the “Riverview Gardens Landscape Maintenance District” (“District”). The District was established to fund the ongoing maintenance and servicing of the improvements, which primarily consist of the landscaped areas on Willow Street east of San Antonio Drive. The properties within the District are assessed annually through the Monterey County tax roll.
COST ANALYSIS:
The costs to maintain and service the improvements for Fiscal Year 2026-27 have been estimated at $14,362.23. This includes contract services for the maintenance and servicing of the improvements, utilities, engineering and administrative costs, Monterey County charges, and reserve collections. Each of the 45 parcels in the District benefits equally from the improvements, and as a result, each parcel is assessed the same amount. For Fiscal Year 2026-27, that amount is $497.12. If the assessments are not charged to the properties within the District, the costs to maintain the improvements will have to be funded in some other way.
ENVIRONMENTAL REVIEW:
The resolution is not a project within the meaning of Section 15378 of the State of California Environmental Quality Act (“CEQA”) Guidelines because it has no potential to result in a physical change in the environment, directly or indirectly. Most of the terms and scope of city discretion are guided by existing State and Federal law. The resolution
CITY COUNCIL
CONSIDERATION OF RESOLUTION APPROVING THE ANNUAL ASSESSMENT
REPORT AND ORDERING THE LEVY AND COLLECTION OF ASSESSMENTS FOR
THE RIVERVIEW GARDENS LANDSCAPE MAINTENANCE DISTRICT FOR FISCAL YEAR 2026-27
JUNE 23, 2026
PAGE 3 OF 3
declares the City’s intent to levy and collect assessment fees. The resolution does not authorize any specific development or installation on any specific piece of property within the City’s boundaries. Alternatively, the resolution is exempt from CEQA because the City Council’s adoption of the resolution is covered by the general rule that CEQA applies only to projects with the potential to cause a significant effect on the environment (State CEQA Guidelines, § 15061(b)(3)).
ALTERNATIVES:
The following alternatives are provided for Council consideration:
1. Approve staff’s recommendations;
2. Modify and approve the cost of the Assessment, which would require the City to subsidize the maintenance if the cost is reduced;
3. Direct staff to eliminate the assessment and maintenance work; or
4. Provide other directions to staff.
Exhibits:
1. Resolution No. 2026-5092
2. Final Engineer's Report
RESOLUTION NO. 2026-5092
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KING AMENDING AND/OR
APPROVING THE ANNUAL ASSESSMENT REPORT AND ORDERING THE LEVY AND
COLLECTION OF ASSESSMENTS FOR THE RIVERVIEW GARDENS LANDSCAPE MAINTENANCE DISTRICT FOR FISCAL YEAR 2026-27
WHEREAS, the City Council of the City of King has, by previous Resolutions, initiated proceedings and declared its intention to levy and collect annual assessments in a special maintenance district created pursuant to the terms of the “Landscaping and Lighting Act of 1972”, being Division 15, Part 2 of the Streets and Highways Code of the State of California (the “1972 Act”). Said special maintenance district is known and designated as Riverview Gardens Landscape Maintenance District (the “District”);
WHEREAS, at this time, all notice and Public Hearing requirements as required by the 1972 Act and Proposition 218 have been met relating to the levy of the annual assessments; and, WHEREAS, the City Council has received and reviewed the Engineer’s Report (the “Report”) and is now satisfied with the assessments, diagram, and all other matters as contained in the Report as it is now submitted for final consideration and approval; and, WHEREAS, the assessments are in compliance with all laws pertaining to the levy of the District assessments; said assessments are levied without regard to property valuation and are in compliance with the provisions of Proposition 218, as the District was approved by a 100% vote of the property owners at the time of formation; and,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KING AS FOLLOWS:
RECITALS
Section 1. The above recitals are all true and correct.
Section 2. This City Council hereby finds and determines that the procedures for the consideration of the levy of the annual assessments have been undertaken in accordance with the 1972 Act and Proposition 218. The proposed assessments for Fiscal Year 2026-27 are not proposed to be increased beyond what was previously authorized at the time of formation of the District.
DETERMINATION AND CONFIRMATION
Section 3. The final assessments and diagram for the proceedings, as contained in the Report, are hereby approved and confirmed.
Based upon the Report and the testimony and other evidence presented at the Public Hearing, the City Council hereby makes the following determinations regarding the proposed assessments:
Exhibit 1
a. The proportionate special benefit derived by each assessed parcel has been determined in relationship to the entirety of the cost of the operations, maintenance, and servicing of the improvements.
b. The assessments do not exceed the reasonable cost of the proportional special benefit conferred on each parcel.
c. Only special benefits have been assessed.
The assessments for the District contained in the Report for Fiscal Year 2025-26 are hereby confirmed and levied upon the assessable lots or parcels within the District in the amounts set forth in the Report.
ORDERING OF MAINTENANCE
Section 4. The public interest and convenience require, and this legislative body does hereby order the maintenance work to be performed as said maintenance work is set forth in the Report and as previously declared and set forth in the Resolution of Intention.
FILING WITH SECRETARY
Section 5. The above referenced Report shall be filed in the Office of the City Clerk and shall remain open for public inspection.
ENTRY UPON THE ASSESSMENT ROLL
Section 6. The County Auditor shall enter onto the County Assessment roll, opposite each lot or parcel of land, the amount assessed thereupon, as shown in the Report.
COLLECTION AND PAYMENT
Section 7. The assessments shall be collected at the same time and in the same manner as County taxes are collected and all laws providing for the collection and enforcement of County Taxes shall apply to the collection and enforcement of the assessments.
FISCAL YEAR
Section 8. The assessments as above authorized and levied for these proceedings will provide revenue and relate to the fiscal year commencing July 1, 2026, and ending June 30, 2027.
PASSED AND ADOPTED at a regular meeting of the City Council this 23rd day of June 2026, by the following vote:
AYES:
NAYS:
ABSENT:
ABSTAIN:
______________________________
Mike Lebarre, Mayor
ATTEST:
___________________________
Erica Sonne, City Clerk
APPROVED AS TO FORM:
___________________________
Roy Santos, City Attorney
CITY OF KING
FINAL ENGINEER’S REPORT
FISCAL YEAR 2026-27
RIVERVIEW GARDENS LANDSCAPE
MAINTENANCE DISTRICT
MAY 2026
PREPARED BY
Harris & Associates
450 Lincoln Avenue, Suite 103
Salinas, CA 93901
www.weareharris.com
Exhibit 2
Engineer’s Report
Riverview Gardens Landscape Maintenance District
City of King
Fiscal Year 2026-27
TABLE OF CONTENTS
STATEMENT OF ASSESSMENT ENGINEER….……………………………………………………………..1 PART 1 – PLANS AND SPECIFICATIONS……………………………………………………………………..3 PART 2 – ESTIMATE OF COSTS………………………………………………………………………………….4 PART 3 – ASSESSMENT DIAGRAM…………………………………………………………………………….7 PART 4 – METHOD OF APPORTIONMENT………………………………………………………………...8 APPENDIX A – ASSESSMENT ROLL…………………………………………………………………………..12 APPENDIX B – DISTRICT DIAGRAM.………………………………………………………………………...15 Engineer’s Report
Riverview Gardens Landscape Maintenance District
City of King
Fiscal Year 2026-27
1 STATEMENT OF ASSESSMENT ENGINEER
AGENCY: CITY OF KING
PROJECT: RIVERVIEW GARDENS LANDSCAPE MAINTENANCE DISTRICT TO: THE CITY COUNCIL
CITY OF KING
STATE OF CALIFORNIA
ENGINEER’S REPORT FOR FISCAL YEAR 2026-27
The preparation of this Annual Engineer’s Report (“Report”) is in conformance with the obligation of the City Council for the Riverview Gardens Landscape Maintenance District of the City of King to provide landscaping services for each lot or parcel of land in the district in proportion to the estimated benefit to be received by each such lot or parcel of land for Fiscal Year 2026-27.
Pursuant to the Landscaping and Lighting Act of 1972 (Part 2 Division 15 of the Streets and Highways Code of the State of California, commencing with Section 22500) (“Act”), Article XIIID, Section 4(a) of the State of California Constitution, and in accordance with the City of King’s Resolution being adopted by the City Council for the District. This Report consists of the following Parts:
PART 1
Description of Improvements: This part provides a general description of improvements maintained in the District. Plans and specifications for the improvements are on file with the City and are hereby made a part of this Report by reference.
PART 2
Estimate of Cost: This part contains the cost estimate of the proposed maintenance including incidental costs and expenses for Fiscal Year 2026-27.
PART 3
District Diagram: This part incorporates a Diagram of the District showing the external boundaries of the District. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Monterey County Assessor for the year in which this Report was prepared and are incorporated by reference herein and made part of this Report. The District Diagram is filed under separate cover with the office of the City Clerk. A copy of the District Diagram is included herein as Appendix B.
Engineer’s Report
Riverview Gardens Landscape Maintenance District
City of King
Fiscal Year 2026-27
2 PART 4
Method of Apportionment of the Assessments: This part describes the method of apportionment of assessments, based upon parcel classification of land within the District in proportion to the estimated special benefits to be received. The costs and expenses of the District have been assessed upon the parcels of land within the boundaries of District pursuant to the initial methodology established Resolution No. 3757 approved on the 19th day of May, 1998.
Appendices
Appendix A – Assessment Roll
Appendix B – District Diagram
In conclusion, it is my opinion that the costs and expenses of the District have been assessed to the lots and parcels within the boundaries of the District in proportion to the estimated benefits to be received by each lot or parcel from the services provided.
DATED this 20th day of May, 2026
Alison Bouley, P.E., Assessment Engineer
R.C.E. No. C61383
Engineer of Work
Engineer’s Report
Riverview Gardens Landscape Maintenance District
City of King
Fiscal Year 2026-27
3 PART 1 – PLANS AND SPECIFICATIONS
The District was formed for the purpose of ensuring the ongoing operation, maintenance and servicing of certain landscape improvements within the boundaries of the District. Said improvements are detailed below under “Improvements and Services Provided”.
The Riverview Gardens Landscape Maintenance District is within the boundaries of the City and is located south of Willow Street, east of San Antonio Drive, and generally north of King City high school.
The District is comprised of the residential development known as Riverview Gardens and includes forty-five (45) developed single-family residential parcels.
The plans and specifications for the improvements, showing the general nature, location, and the extent of the improvements, are on file with the City and are incorporated herein by reference.
IMPROVEMENTS AND SERVICES PROVIDED
The following are the specific improvements maintained and serviced within the District:
• Landscape maintenance along the Willow Street frontage, including ground cover, shrubs, trees and irrigation system. Landscaping total approximately 12,275 square feet. • Masonry wall maintenance, including graffiti abatement at the entrance to the tract. Masonry wall is 300 linear feet by 6 feet high.
• Utilities including water and electricity for landscaping.
Maintenance includes all necessary repair, service, and replacement of improvements, including the masonry wall, water and electrical energy to run the irrigation system, fertilizer, weeding, debris removal, etc.
Engineer’s Report
Riverview Gardens Landscape Maintenance District
City of King
Fiscal Year 2026-27
4 PART 2 – ESTIMATE OF COST
The estimated budget for the annual maintenance and servicing of the improvements and the proportionate share of administration costs of the District has been prepared based on the estimated and recent historical costs of the District.
The estimated 2026-27 District budget is shown below.
ESTIMATE OF COST
DIRECT COSTS
Utility – Water and Electricity $1,256.43
Supplies – Irrigation $265.00
Contract Services – Landscape Maintenance (12,275 sf @ $0.65/sf) (ex: tree & shrub maintenance and replacement, sprinkler repairs, etc.) $7,978.75
Masonry Wall – Maintenance and Graffiti Abatement $180.00 Professional Services – Public Works (inspection & oversight) $530.00 Direct Costs Sub-Total $10,210.18
ADMINISTRATIVE COSTS
Professional Services – Engineer’s Report Preparation/City Engineer's Time $3,075.00 City Administration Fee (10% of Direct Costs) $1,021.02 County Administration Fee (0.25% of Balance to Assessment) $56.03 Rounding Adjustment (to make an even penny for tax roll purposes) $0.00 Administrative Costs Sub-Total $4,152.05
SUBTOTAL DIRECT AND ADMINISTRATIVE COSTS $14,362.23
Operating Reserve Collection/(Reduction) $0.00
Capital Reserve Collection/(Reduction) $8,008.17
TOTAL BALANCE TO ASSESSMENT $22,370.40
Total Assessable Parcels/Units 45
PROPOSED ASSESSMENT PER PARCEL/UNIT $497.12
Engineer’s Report
Riverview Gardens Landscape Maintenance District
City of King
Fiscal Year 2026-27
5 The 1972 Act requires that a special fund be set up for the revenues and expenditures of the District. Funds raised by assessment shall be used only for the purpose as stated herein. A contribution to the District by the City may be made to reduce assessments or to fund costs which are greater than revenue from the assessments, as the City Council deems appropriate. Any balance or deficit remaining on July 1 must be carried over to the next fiscal year. Estimated beginning and ending fund balances for Fiscal Year 2026-27 are shown in the following table.
Section 22569 (a) of the 1972 Act allows the District assessments to “…include a reserve (Operating Reserve) which shall not exceed the estimated costs of maintenance and servicing to December 10 of the fiscal year, or whenever the city expects to receive its apportionment of special assessments and tax collections from the county, whichever is later.”
DISTRICT FUND BALANCES
OPERATING RESERVE FUND
Estimated Reserve Fund Beginning Balance as of July 1, 2026 $7,181.11 Operating Reserve Collection/(Reduction) – Fiscal Year 2026-27 $0.00 Estimated Reserve Fund Balance Ending June 30, 2027 $7,181.11
CAPITAL RESERVE FUND
Estimated Reserve Fund Beginning Balance as of July 1, 2026 $4,563.33 Capital Reserve Collection/(Reduction) – Fiscal Year 2026-27 $8,008.17 Estimated Reserve Fund Balance Ending June 30, 2027 $12,571.50 Operating Reserve collections will continue until such time as the fund balance reaches approximately 50% of the annual budget. This is necessary to fund the District costs for the first 6 months of the fiscal year. After the Operating Reserve has been fully funded (50% of annual costs), any future collections will be to maintain the fund balance at the proper level (approximately 50% of the annual Direct Costs).
Capital Reserve collection is intended for the eventual replacement of the masonry wall at the entrance of the development. Masonry walls typically have an expected useful life of approximately 30 to 40 years. The wall was installed in 1998, leaving approximately twelve years of useful life, as of Fiscal Year 2026-27.
Engineer’s Report
Riverview Gardens Landscape Maintenance District
City of King
Fiscal Year 2026-27
6 DESCRIPTION OF COST ESTIMATE ITEMS
• Utility – Water & Electricity: The costs to provide water and electrical utilities for the landscaping improvements within the District.
• Supplies – Irrigation: The costs to replace batteries providing electrical power to the irrigation system. • Contract Services – Landscape Maintenance: The contracting costs associated with performing the landscape maintenance duties associated with the improvements within the District. In Fiscal Year 2021-22 the City hired a landscape contractor to perform these services. Annual costs will be adjusted to reflect the actual contract costs in future years.
• Masonry Wall: Costs associated with the maintenance or replacement of the masonry wall, including graffiti removal, painting and repairs. The current replacement cost is approximately $10.00/sf, based on the length and height of the wall (300’ X 6’). This cost may be adjusted as necessary to cover actual costs.
• Professional Services Special – Public Works: Costs associated with individuals within the Public Works Department who contribute time to inspection of the improvements, and oversight of the work performed by the landscape contractor.
• Professional Services – Engineer: The contracting costs associated with hiring a consultant for the preparation of an engineer’s report, resolutions, staff reports, notices, assessment roll and budget. • City Administration Fee: Costs associated with individual City Staff and Management (City Clerk, City Council, City Manager, Finance Director, City Engineer, etc.) who contribute time to the annual administration and oversight of the District, and totals 10% of Direct Costs. This may include but is not limited to, preparation for and attendance of meetings, legal counsel, printing, preparation and posting of public notices, mailing, budgeting, etc.
• County Administration Fee – The County costs related to placement of the annual assessment charges onto the tax roll and the generation of annual tax bills related thereto. This charge is 0.25% of the total amount levied for the District.
• Contingency – This item includes costs related to the unplanned repair or replacement of any of the improvements, including the irrigation system.
• Operating Reserve Collection/(Contribution): This item shows any collections which add to the Operating Reserve Fund balance, or contributions made from the Operating Reserve Fund, to offset the annual budget. • Capital Reserve Collection/(Contribution): Collections for replacement costs related to the masonry wall, irrigation system and trees at the end of their useful life or due to accident or natural disaster. • Estimated Reserve Fund Balances: These items show the estimated Operating and Capital Reserve Fund amounts at the beginning and end of the fiscal year. The estimated ending balance reflects any collections or reductions from the estimated beginning balance.
Engineer’s Report
Riverview Gardens Landscape Maintenance District
City of King
Fiscal Year 2026-27
7 PART 3 – ASSESSMENT DIAGRAM
A diagram showing the exterior boundaries of the District and the lines and dimensions of each lot or parcel of land within the District has been submitted to the office of the City Clerk of the City and is hereby made a part hereof by reference.
A copy of the assessment diagram for the District is included in Appendix B of the Report.
Engineer’s Report
Riverview Gardens Landscape Maintenance District
City of King
Fiscal Year 2026-27
8 PART 4 – METHOD OF APPORTIONMENT
General
Street and Highways Code Section 22573 requires that maintenance assessments be levied according to benefit rather than according to assessed value. This section states:
“The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.”
— Streets and Highways Code Section 22573
The 1972 Act permits the designation of areas of benefit within any individual assessment district if "by reason of variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvements." (Sec. 22574). Thus, the 1972 Act requires the levy of a true "assessment" rather than a "special tax." In November 1996, the voters of California adopted Proposition 218, which has been codified as Articles XIIIC and XIIID of the California Constitution. Proposition 218 imposed a number of substantive and procedural requirements on taxes, assessments, and property-related fees imposed by local governments in California.
The method of apportionment described in this Report, and confirmed by the City Council, utilizes commonly accepted engineering practices established pursuant to the 1972 Act and the California Constitution for the allocation of special benefit assessments. The calculation of assessments is based upon the parcel type and the services and improvements provided to equitably apportion the costs based on the special benefit received by each lot or parcel. The special benefit received by each lot or parcel is over and above any general benefit conferred upon said lots or parcels or to the public at large.
Special Benefit
The improvements and associated costs have been allocated to the assessable properties within the District based upon the special benefit received by those properties. The improvements for which the properties are assessed have been identified as necessary, were installed and are being maintained as part of the development plans specifically for this tract.
As such, the improvements and continuing maintenance and servicing of those improvements are strictly the obligation of the properties within the District. Any benefit to adjacent parcels or passersby is strictly incidental. The improvements provide a particular and distinct benefit to the assessed parcels over and above any general benefits conferred to the public at large.
General Benefit
Although the improvements may be visible to passersby or to the public at large, they were installed as a requirement of the development of the tract and are intended to primarily benefit those properties within the District. Any access or use by properties or individuals outside the District is incidental and any resulting benefit is general in nature and not proportional to the special benefits received by the assessed parcels.
Engineer’s Report
Riverview Gardens Landscape Maintenance District
City of King
Fiscal Year 2026-27
9 Definition of Special Benefit
The method of apportionment described in this Report is based on the premise that each assessable parcel or unit receives distinct and special benefits from the improvements and services provided, including the visual desirability provided by well-maintained landscaping. In accordance with Article XIII D, Section 4 of the California Constitution (“Proposition 218):
“Special benefit means a particular and distinct benefit over and above general benefits conferred on real property located in the District or the public at large” The special benefits associated with local landscaping improvements are specifically:
• Enhanced desirability and marketability of properties due to proximity and accessibility of the improvements.
• Improved aesthetic appeal of parcels through a positive representation of the development and surrounding neighborhood.
• Reduced vandalism and other property-related criminal activity affecting parcels within the District.
ASSESSMENT RANGE FORMULA
It is generally recognized that most budgetary items will be impacted by inflation in future years. In accordance with the California Constitution, Section 53739 (b)(1), assessments “may be adjusted for inflation pursuant to a clearly defined formula…” A formula for an inflationary adjustment is therefore included as part of the maximum assessment for this District and was approved by the property owner(s) at the time of formation. The formula, as described below, allows for annual adjustments to the budget and the assessments.
To impose a new assessment or increased assessment in excess of the Maximum Assessment Rate for the current fiscal year, as provided by the following Assessment Range Formula, the City must comply with the provisions of the California Constitution, Article XIII D, Section 4c that requires a public hearing and certain protest procedures including mailed notice of the public hearing and property owner protest balloting. Property owners must approve the proposed new or increased assessment via a property owner protest balloting process before any such new or increased assessment can be imposed.
A protest occurs when, at the public hearing, the returned assessment ballots opposed to the new or increased assessment outweigh the returned ballots in favor of the new or increased assessment, weighing those assessment ballots by the financial obligation of each parcel.
The definition of new or increased assessments includes any assessment which, 1) did not previously exist or, 2) exceeds a previously approved assessment amount or assessment range formula. Any assessment range formula must have been previously adopted by the agency and approved by the property owners.
ASSESSMENT METHODOLOGY
The benefit formula used to determine the financial obligation for each parcel is based on the improvements benefiting the parcels, as well as the use, or type, of each parcel that benefits from said improvements. One of the more common approaches to fairly distributing District costs to the benefitting parcels in maintenance districts such as this utilizes a methodology referred to as the “Per Parcel” method of apportionment. This method, as confirmed by the City Council at the time the District was formed, identifies the fact that all the parcels in the District, each being single family residential, benefit equally from the improvements provided by the District.
The initial maximum assessment for this District was established at the time of formation and was assessed for the first time during the 1998-99 fiscal year. That initial maximum assessment was $221.72 per parcel. This initial maximum assessment has been adjusted each subsequent fiscal year by the following Assessment Range Formula:
Engineer’s Report
Riverview Gardens Landscape Maintenance District
City of King
Fiscal Year 2026-27
10 • The Maximum Assessment Rate allowed each fiscal year (the “Adjusted Maximum Assessment Rate”) shall be based on the initial maximum assessment established in Fiscal Year 1998-99, adjusted annually by the Bureau of Labor Statistics, Consumer Price Index for the month of April, All Urban Consumers, (“CPI”) for the San Francisco/Oakland/Hayward area. Should the Bureau of Labor Statistics revise or discontinue the preparation of such index, the City reserves the right to use such revised index or a comparable system to determine fluctuations in the annual cost of living.
• Each fiscal year, the CPI shall be applied to the Maximum Assessment Rate established the previous fiscal year to calculate the appropriate Adjusted Maximum Assessment Rate for the current fiscal year. • If the proposed annual assessment rate (levy per parcel) for the year is less than or equal to the Adjusted Maximum Assessment Rate established for that fiscal year then the proposed annual assessment is not considered an increased assessment.
Beginning in the second fiscal year after the formation of the District (1999-00) and each fiscal year since, the Maximum Assessment Rate has been recalculated and a new Maximum Assessment Rate has been established for each fiscal year using the Assessment Range Formula described above. Based on the April CPI shown in the table below, the Maximum Assessment Rate for the upcoming fiscal year (2026-27) shall be $497.13.
The Adjusted Maximum Assessment Rate has been calculated independent of the annual budget and proposed assessment rate for the given fiscal year. As stated above, if the proposed annual assessment for any fiscal year does not exceed the Adjusted Maximum Assessment Rate for that year, it is not considered to be an increased assessment under the terms of Proposition 218.
The table on the following page shows the annual April CPI increase, the Adjusted Maximum Assessment and the Actual Annual Assessment each year since the formation of the District:
Engineer’s Report
Riverview Gardens Landscape Maintenance District
City of King
Fiscal Year 2026-27
11 The City assessed the parcels in the District for the first time in seven years, in Fiscal Year 2019-20, due to the fact that there were no improvements being maintained. The improvements have now been installed and are being maintained and serviced annually.
Fiscal April CPI Adjusted Max. Proposed
Year CPI % Calculation Assessment Assessment
1998-99 N/A N/A $221.72 $221.72
1999-00 4.60% 1.046000000 $231.92 $221.72
2000-01 3.80% 1.038000000 $240.73 $213.60
2001-02 5.80% 1.058000000 $254.69 $229.92
2002-03 2.10% 1.021000000 $260.04 $229.92
2003-04 2.20% 1.022000000 $265.76 $114.96
2004-05 0.50% 1.005000000 $267.09 $114.96
2005-06 2.10% 1.021000000 $272.70 $114.96
2006-07 3.20% 1.032000000 $281.43 $114.96
2007-08 3.30% 1.033000000 $290.72 $114.96
2008-09 2.90% 1.029000000 $299.15 $114.96
2009-10 0.80% 1.008000000 $301.54 $25.00
2010-11 1.70% 1.017000000 $306.67 $25.00
2011-12 2.80% 1.028000000 $315.25 $25.00
2012-13 2.10% 1.021000000 $321.87 $0.00
2013-14 2.40% 1.024000000 $329.60 $0.00
2014-15 2.80% 1.028000000 $338.83 $0.00
2015-16 2.40% 1.024000000 $346.96 $0.00
2016-17 2.70% 1.027000000 $356.33 $0.00
2017-18 3.80% 1.038000000 $369.87 $0.00
2018-19 3.20% 1.032000000 $381.70 $0.00
2019-20 4.00% 1.040000000 $396.97 $213.60
2020-21 1.11% 1.011102405 $401.38 $401.38
2021-22 3.80% 1.038000000 $416.63 $416.62
2022-23 4.99% 1.049961379 $437.44 $437.44
2023-24 4.19% 1.041917274 $455.78 $455.78
2024-25 3.76% 1.037669574 $472.95 $472.94
2025-26 1.26% 1.012697617 $478.95 $478.94
2026-27 3.79% 1.037975075 $497.13 $497.12
Engineer’s Report
Riverview Gardens Landscape Maintenance District
City of King
Fiscal Year 2026-27
12 APPENDIX A – ASSESSMENT ROLL
Parcel Identification for each lot or parcel within the District shall be based on available parcel maps and other property data from the Monterey County Assessor’s office as they existed at the time this Report was prepared and adopted by the City Council.
A listing of parcels assessed within the District for Fiscal Year 2026-27, along with the corresponding assessment amounts, is included on the following page. If any parcel submitted for collection is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, a corrected parcel number and/or new parcel numbers will be identified and resubmitted to the County Auditor/Controller. The assessment amount to be levied and collected for the resubmitted parcel(s) shall be based on the method of apportionment and assessment rate approved in this Report.
Therefore, if a single parcel has changed to multiple parcels, the assessment amounts applied to each of the new parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment.
Non-assessable lots or parcels include areas of public streets and other roadways (typically not assigned an APN by the County); dedicated public easements, open space areas and rights-of-way, including public greenbelts and parkways; utility rights-of-way; common areas; landlocked parcels; small parcels vacated by the County, bifurcated lots and any other property that cannot be developed or has specific development restrictions. These types of parcels are considered to receive little or no benefit from the improvements and are therefore, exempted from assessment.
Engineer’s Report
Riverview Gardens Landscape Maintenance District
City of King
Fiscal Year 2026-27
13 APN
Parcel
Type Units
2026-27 Maximum
Assessment Rate
2026-27 Proposed
Assessment Rate
026-072-001 SFR 1.00 $497.13 $497.12
026-072-002 SFR 1.00 $497.13 $497.12
026-072-003 SFR 1.00 $497.13 $497.12
026-072-004 SFR 1.00 $497.13 $497.12
026-072-005 SFR 1.00 $497.13 $497.12
026-072-006 SFR 1.00 $497.13 $497.12
026-072-007 SFR 1.00 $497.13 $497.12
026-072-008 SFR 1.00 $497.13 $497.12
026-072-009 SFR 1.00 $497.13 $497.12
026-072-010 SFR 1.00 $497.13 $497.12
026-072-011 SFR 1.00 $497.13 $497.12
026-072-012 SFR 1.00 $497.13 $497.12
026-072-013 SFR 1.00 $497.13 $497.12
026-072-014 SFR 1.00 $497.13 $497.12
026-072-015 SFR 1.00 $497.13 $497.12
026-072-016 SFR 1.00 $497.13 $497.12
026-072-017 SFR 1.00 $497.13 $497.12
026-072-018 SFR 1.00 $497.13 $497.12
026-072-019 SFR 1.00 $497.13 $497.12
026-072-020 SFR 1.00 $497.13 $497.12
026-072-021 SFR 1.00 $497.13 $497.12
026-072-022 SFR 1.00 $497.13 $497.12
026-072-023 SFR 1.00 $497.13 $497.12
026-072-024 SFR 1.00 $497.13 $497.12
026-072-025 SFR 1.00 $497.13 $497.12
026-072-026 SFR 1.00 $497.13 $497.12
026-072-027 SFR 1.00 $497.13 $497.12
026-072-028 SFR 1.00 $497.13 $497.12
026-072-029 SFR 1.00 $497.13 $497.12
026-072-030 SFR 1.00 $497.13 $497.12
026-072-031 SFR 1.00 $497.13 $497.12
026-072-032 SFR 1.00 $497.13 $497.12
026-072-033 SFR 1.00 $497.13 $497.12
026-072-034 SFR 1.00 $497.13 $497.12
026-072-035 SFR 1.00 $497.13 $497.12
026-072-036 SFR 1.00 $497.13 $497.12
026-072-037 SFR 1.00 $497.13 $497.12
026-072-038 SFR 1.00 $497.13 $497.12
Engineer’s Report
Riverview Gardens Landscape Maintenance District
City of King
Fiscal Year 2026-27
14 APN
Parcel
Type Units
2026-27 Maximum
Assessment Rate
2026-27 Proposed
Assessment Rate
026-072-039 SFR 1.00 $497.13 $497.12
026-072-040 SFR 1.00 $497.13 $497.12
026-072-041 SFR 1.00 $497.13 $497.12
026-072-042 SFR 1.00 $497.13 $497.12
026-072-043 SFR 1.00 $497.13 $497.12
026-072-044 SFR 1.00 $497.13 $497.12
026-072-045 SFR 1.00 $497.13 $497.12
026-072-046 EXE 0.00 $497.13 $0.00
026-072-047 EXE 0.00 $497.13 $0.00
026-072-048 EXE 0.00 $497.13 $0.00
TOTALS: 45.00 $22,370.40
SFR = Single Family Residence
EXE = Landscape
easement
Engineer’s Report
Riverview Gardens Landscape Maintenance District
City of King
Fiscal Year 2026-27
15 APPENDIX B – ASSESSMENT DIAGRAM
Item No. 11(A)
REPORT TO THE CITY COUNCIL
DATE: JUNE 23, 2026
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: DOREEN LIBERTO, AICP, COMMUNITY DEVELOPMENT
DIRECTOR
THROUGH: JOSE ARREOLA, CITY MANAGER
RE: CONSIDERATION OF PRE-CONSTRUCTION DESIGN AND
ENGINEERING SERVICES AUTHORIZING THE CITY MANAGER
TO SIGN AGREEMENTS AND DOCUMENTS RELATED TO
TRANSFERRING THE KING CITY MULTIMODAL TRANSIT
CENTER TO TAMC
RECOMMENDATION:
It is recommended the City Council: 1) authorize the City Attorney to approve the final Pre-Construction Design and Engineering Services Assignments and Assumption Agreement, and 2) authorize the City Manager to sign the final PreConstruction Design and Engineering Services Assignments and Assumption Agreement.
BACKGROUND:
On February 24, 2026, the City Council considered the transfer of the King Station Multimodal Transit Center (MMTC) Project to the Transportation Agency for Monterey County (TAMC) and directed staff to initiate the transfer process.
On February 25, 2026, the TAMC Board authorized its staff to begin discussions with Caltrans and the City regarding the transfer of the Project from the City to TAMC. This authorization included the transfer of project funding and implementation responsibilities.
On June 17, 2020, the City entered into an agreement with RailPros for preconstruction design and engineering services associated with the Project. As part of the transfer process, the City proposes to assign the RailPros agreement to TAMC, and TAMC would assume all rights, responsibilities, and obligations under the agreement. This assignment would transfer responsibility for managing the agreement and overseeing the remaining work to TAMC as the lead agency for the Project.
CITY COUNCIL
CONSIDERATION OF PRE-CONSTRUCTION DESIGN AND ENGINEERING
SERVICES AUTHORIZING THE CITY MANAGER TO SIGN AGREEMENTS
AND DOCUMENTS RELATED TO TRANSFERRING THE KING CITY
MULTIMODAL TRANSIT CENTER TO TAMC
JUNE 23, 2026
PAGE 2 OF 3
DISCUSSION:
The City has been working to reestablish passenger rail service since 2006. Over the past two decades, substantial progress has been made toward construction of the MMTC, including its incorporation into local, regional, state, and Amtrak planning documents. The City has secured a significant portion of the funding necessary for construction of the MMTC, including working with RailPros to prepare the pre-construction design, and with Union Pacific Railroad (UPRR) to address improvements required prior to the initiation of passenger rail service.
With existing and future City staffing constraints, it is prudent to transfer the MMTC Project to TAMC, the regional transportation agency. Several actions are necessary to complete the transfer of the MMTC Project from the City TAMC.
Effective June 3, 2026, TAMC was designated by Caltrans as the lead agency for the Project. The TAMC Board of Directors is scheduled to consider an agreement this month that would transfer the existing design engineering contract with RailPros from the City to TAMC. (The City entered into an agreement with RailPros on June 17, 2020.) Exhibit 1 identifies June 24, 2026 as the official transfer date of the RailPros Agreement. The City currently maintains a Reimbursement Agreement with UPRR for review of the engineering plans.
TAMC has requested that UPRR enter into a new design review agreement with TAMC to continue design review services for the King City station project and to provide an updated estimate of the remaining design review costs. The City's Reimbursement Agreement with UPRR will therefore no longer remain in effect.
COST ANALYSIS:
The remaining $120,000 reimbursement from SLOCOG to the City was submitted on June 4, 2026. The reimbursement includes final payments to RailPros and UPRR.
ENVIRONMENTAL REVIEW:
The City of King has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) per Guidelines Section 15378. CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action
CITY COUNCIL
CONSIDERATION OF PRE-CONSTRUCTION DESIGN AND ENGINEERING
SERVICES AUTHORIZING THE CITY MANAGER TO SIGN AGREEMENTS
AND DOCUMENTS RELATED TO TRANSFERRING THE KING CITY
MULTIMODAL TRANSIT CENTER TO TAMC
JUNE 23, 2026
PAGE 3 OF 3
and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.
ALTERNATIVES:
The following recommendations are provided for City Council consideration:
1. Accept Staff’s recommendation;
2. Do not accept Staff’s recommendation; or
3. Provide Staff with other direction.
EXHIBIT:
Exhibit 1: King City Multimodal Transit Center Temporary Platform Project Pre-Construction Design and Engineering Services Assignment and Assumption Agreement
EXHIBIT 1
KING CITY MULTIMODAL TRANSIT CENTER TEMPORARY PLATFORM PROJECT
PRE-CONSTRUCTION DESIGN AND ENGINEERING SERVICES
ASSIGNMENT AND ASSUMPTION AGREEMENT
THIS CONTRACT ASSIGNMENT AND ASSUMPTION AGREEMENT (“Agreement”) is made and entered into as of the last date opposite the respective signatures below, by and among the City of King, California (“Assignor”); Transportation Agency for Monterey County (“Assignee”); and RailPros(“Consultant” under contract with the City of King to provide design and engineering services for the King City Multimodal Transit Center project).
RECITALS:
A. The King City Multimodal Transit Center project (“Project”) was first identified as a passenger rail improvement in 2000 for the Coast Daylight Implementation Plan, initiated by Assignor beginning in 2005 as part of community and specific planning for the downtown and station area, and subsequently included in long-range regional transportation plans and State Rail Plans as a prioritized passenger rail improvement for the Coast Intercity Passenger Rail Corridor; and
B. The State of California awarded State Rail Assistance grant funding to the San Luis Obispo Council of Governments (SLOCOG) in 2018 for a program of projects on the rail corridor, including funding for the City of King to develop and implement the Project; and C. Assignor entered into a contract (“Contract”) with Consultant on June 17, 2020 for professional pre-construction design and engineering services to develop the project and coordinate with the Union Pacific Railroad on behalf of Assignor in anticipation of conditions permitting orderly and continuous progress of the Project through completion of services; and D. Assignor and Assignee, in coordination and consultation with the State of California and SLOCOG, agreed to transfer project sponsorship and lead agency responsibilities to Assignee in February 2026 to address and resolve circumstances related to staffing and the institutional capacity of Assignor in order to best ensure effective oversight of pre-construction activities and timely implementation of the Project; and E. State of California approved a Corrective Action Plan to its agreement with SLOCOG on May 20, 2026 designating Assignee as the lead agency for implementing the project and transferring responsibility for administration of pre-construction tasks funded by the State Rail Assistance grant as the project sponsor; and
F. Assignor and Assignee have entered into an agreement to convey certain interests between them and Assignor now wishes to assign its rights and delegate its duties under the Contract to the Assignee with the written consent of the Consultant as specified in Section 22 of the Contract; and
2 G. Consultant is willing to consent to the Assignment, in accordance with the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the above recitals, the mutual promises contained below, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Assignor and Assignee agree as follows:
AGREEMENT:
1. Recitals. The above recitals are an integral part of the agreement and understanding of Assignor and Assignee and are incorporated by reference in this Agreement.
2. Assignment. Assignor hereby grants, conveys, assigns and transfers to Assignee, effective as of the 24th of June, 2026 (the “Effective Date”), all of Assignor’s right, title and interest in and to, and delegates to Assignee all of Assignor’s duties, obligations and liabilities in connection with the Contract.
3. Acceptance and Assumption. Assignee hereby accepts the Assignment and assumes and promises to perform all of Assignor’s duties, obligations and liabilities under the Contract as of and following the Effective Date.
4. Indemnities. Assignor hereby agrees to indemnify and hold harmless Assignee and its, officers, directors, members, managers, partners, employees, agents, successors and assignees, from and against any and all losses, damages, liabilities, obligations, assessments, suits, actions, proceedings, claims or demands, including costs, expenses and fees (including reasonable attorneys’ fees, accountant, paralegal, and expert witness fees) incurred in connection with, suffered by any of them or asserted against any of them, arising out of or based upon any default, liability or obligation under the Contract which occurred or arose before the Effective Date. . Nothing in this section shall constitute a waiver of the Assignor’s rights under local, state and or federal law. Assignee hereby agrees to indemnify and hold harmless Assignor and its, officers, directors, members, managers, partners, employees, agents, successors and assignees, from and against any and all losses, damages, liabilities, obligations, assessments, suits, actions, proceedings, claims or demands, including costs, expenses and fees (including reasonable attorneys’ fees, accountant, paralegal, and expert witness fees) incurred in connection with, suffered by any of them or asserted against any of them, arising out of or based upon any default, liability or obligation under the Contract which occurs or arises on or after the Effective Date. Nothing in this section limits Consultant’s rights, remedies, or protections under the Contract, including any indemnity obligations owed to Consultant.
5. Assignor Representations. Assignor hereby acknowledges, agrees, certifies and represents to Consultant and Assignee as follows:
a. A true, complete and accurate copy of the Contract is attached hereto as Exhibit 3 1. The Contract represents the entire understanding between Consultant and Assignor with respect to the completion of services included in the scope of the Contract. The Contract is in full force and effect. The original Contract has not been modified, altered or amended except as attached hereto. b. To the Assignor’s best knowledge, there exists no default of Consultant or Assignor under the Contract nor any state of facts that, with the passage of time or the giving of notice or both would constitute a default under the Contract.
6. Assignor Waivers. To the extent applicable, Assignor hereby waives its right to assert any defense to its liability under the Contract based on (a) Consultant’s failure to make any demand for performance or to give a notice of nonperformance to Assignor; (b) any defense based upon an election of remedies by Consultant under the Contract, including any election which destroys or impairs any right of subrogation, reimbursement or contribution which Assignor may have; and (c) any rights or benefits in favor of Assignor under Sections 2809, 2810, 2815, 2819, 2839, 2845, 2848, 2849 or 2850 of the California Civil Code, or any amendment to any of the foregoing statutes. If all or any portion of Assignor’s obligations under the Contract are paid or performed, Assignor’s liability shall continue and remain in full force and effect in the event that all or any part of such payment or performance is subsequently avoided or recovered from Consultant as a preference, fraudulent transfer or otherwise. . Nothing in this section shall constitute a waiver of the Assignor’s rights under local, state and or federal law.
7. Consent. Consultant hereby consents to Assignor’s assignment of all of Assignor’s right, title, and interest in and to the Contract to Assignee, subject to and upon all of the terms and conditions set forth herein. In granting this consent, Consultant does not waive any of Consultant’s rights under the Contract, including without limitation Consultant’s right to payment, claims, and remedies arising prior to or after the Effective Date. Further, such consent shall not be deemed a waiver by Consultant of its right of consent with respect to any subsequent Contract, sub-contract or assignment by Assignor or Assignee. Consultant acknowledges the terms specified for Period of Services in Section 3 of the Contract.
Consultant’s consent is not intended and shall not be construed (a) to modify or otherwise affect any provisions of the Contract; or (b) as binding or obligating Consultant in any manner whatsoever with respect to any covenants, representations, undertakings or agreements solely between Assignor and Assignee.
8. Release. This Agreement releases Assignor of Assignor’s obligations under the Contract including Assignor’s obligation to pay Consultant and to perform all other obligations to be performed by Consultant under the Contract effective upon the Effective Date; provided, however, that nothing herein shall release, waive, impair, limit, or otherwise affect any rights, claims, remedies, payment obligations, indemnities, reimbursement obligations, or other obligations owing to Consultant, whether accrued, contingent, known or unknown, arising prior to or as of the Effective Date, unless expressly assumed by Assignee in writing and accepted by Consultant.
4 9. Notices. From and after the Effective Date, notices required under this Agreement shall be delivered personally or by e-mail or by first class or certified mail with postage prepaid.
Notice shall be deemed effective upon personal delivery or email-receipt, or on the third day after deposit with the U.S. Postal Service. Unless otherwise changed according to these notice provisions, notices shall be addressed as follows:
To ASSIGNEE: To CONSULTANT:
TAMC RailPros Inc.
Todd A. Muck Nathan Ortega
Executive Director Vice President of Engineering – West Region 55-B Plaza Circle 250 Commerce, Suite 200
Salinas, CA 93901 Irvine, CA 92602
Tel: 831-775-0903 Tel: 714-824-7735
Fax: 831-775-0897 Fax:
Email: [email protected] Email: [email protected] Billing Contact: Billing Contact:
Mi Ra Park Robert Williams
831-775-4418 714-734-8765
[email protected] [email protected]
10. Miscellaneous.
a. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns. Consistent with the Contract, Assignor has obtained Consultant’s written consents to this Agreement in the forms attached hereto.
b. Attorneys’ Fees. If any legal action is brought concerning any matter relating to this Agreement, or by reason of any breach of any covenant, condition or agreement referred to in this Agreement, the prevailing party shall be entitled to have and recover from the other Party to the action all costs and expenses of suit, including attorneys’ fees. c. Amendments. This Agreement may not be altered, waived, amended, or extended except by a written agreement signed by the parties. d. No Partnership or Joint Venture. This Agreement does not constitute an agreement of partnership or joint venture and does not authorize the Assignor to act as an agent for the Assignee for any purpose, nor authorize the Assignee to act as an agent for the Assignor for any purpose.
e. Governing Law. This Agreement shall be construed under the laws of the State of California, without regard to its principles of conflicts of law. 5 f. Counterparts. This Agreement may be executed in two or more counterparts, each of which will be deemed to be an original, but all of which will together constitute one and the same instrument. Delivery of an executed signature page of this Agreement by facsimile or electronic transmission shall be effective as delivery of a manually executed counterpart thereof.
g. Section Headings. The section headings used in this Agreement are for reference only and are not intended to describe, interpret, define or limit the scope, extent or intent of this Agreement.
6 DATED as of the last date opposite the respective signatures below, but effective as of the Effective Date.
ASSIGNOR: ASSIGNEE:
CITY OF KING, CALIFORNIA TRANSPORTATION AGENCY FOR
MONTEREY COUNTY
By: By:
Jose Arreola Todd Muck
City Manager Executive Director
Dated: Dated:
Approved as to Form
By:
Roy C. Santos
City Attorney
Dated:
CONSULTANT:
RAILPROS, INC.
By:
Nathan Ortega
Vice President of Engineering – West Region
Dated:
Approved as to Form and Legality
By:
Shane Eben Strong
TAMC Counsel
Dated: