CITY COUNCIL STAFF REPORT
Meeting Date: February 07, 2022
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: ADOPT RESOLUTION NO. ___-22 DIRECTING THE PREPARATION AND FILING OF THE FY 2022/2023 ANNUAL REPORT FOR
ASSESSMENT DISTRICT NO. 22
SYNOPSIS
An assessment district is a financial mechanism that allows for the levy of an assessment on a specific geographic area or parcels of real estate, which have been identified as receiving a direct and special "benefit" from a public improvement or service. Assessment District No. 22 (AD 22) enables the City to provide landscape maintenance and street lighting at an enhanced level within the scenic easements in the Grayson Woods and Gallery Walk Subdivisions. These landscape and lighting improvements are considered to be of direct benefit to the properties within AD 22’s boundaries. The funding for the maintenance and services is provided through annual assessments paid by the benefiting property owners of parcels located within AD 22.
In order for the City to continue to levy and collect assessments within AD 22 for the upcoming fiscal year (FY 2022/2023) that begins on July 1, 2022, the District Engineer must prepare an Annual Report. The Annual Report must include a description of the improvements to be made during the fiscal year; an estimate of costs to maintain the improvements; an allocation of costs to each parcel; confirmation of each benefiting parcel and levy of assessments; current expenditures; and proposed budget for services. Staff recommends the City Council adopt the proposed resolution directing the District Engineer to prepare and file the FY 2022/2023 Annual Report for Assessment District 22.
DISCUSSION
Background
AD 22 (Grayson Woods) was formed in 1997 pursuant to the provisions of the Landscape and Lighting Act of 1972, which is part of the California Streets and Highways Code. AD 22 was amended in 2002 to include Subdivision 8304, Gallery Walk. AD 22 enables the City to collect assessments from property owners in order to provide landscape maintenance and street lighting at an enhanced level and quality within the Grayson Woods and Gallery Walk Subdivisions (see maps). These services are considered to be of direct and special benefit to the properties within the AD 22 boundaries. The costs for providing these services have been paid annually by the benefiting property owners.
Analysis
The collecting of assessments from properties within the boundaries of AD 22 will ensure continued maintenance of lighting and landscape improvements. Since July of 2007, City staff has provided maintenance services for Grayson Woods (previously contracted out to a private landscape company), and City staff continues to provide maintenance services for Gallery Walk, funded through the collection of assessments. The maintenance activities include weekly mowing and edging of turf; maintenance and repair of irrigation systems; pruning; debris removal; graffiti removal; streetlight repair; maintenance and weeding, as well as utility charges for water and electricity.
In order for the City to continue to levy and collect assessments within AD 22 for FY 2022/2023, the City Council must approve an Annual Report prepared by the District Engineer that includes descriptions of the improvements proposed during the fiscal year, an estimate of costs, and the levy of assessments upon the benefiting properties. The City issued a Request for Proposals and selected Harris & Associates, Inc. (Harris) in December 2019 as the Engineer of Work to conduct the specialized analysis required by state law for inclusion in the Annual Report for AD
22. Staff was satisfied with the annual reports that Harris produced for the FY 2020/2021 and FY 2021/2022 assessment cycles. Accordingly, staff accepted the firm’s proposal to prepare the Annual Report for FY 2022/2023 and submit the assessments to the County Auditor for placement on the Property Tax Roll. A not-to-exceed fee of $9,995 will provide for these services.
Once the FY 2022/2023 Annual Report is complete, the City Council will review the report, and if appropriate, approve a resolution announcing the intent to levy assessments for the current year.
The resolution accomplishes the following: announces the City’s intent to levy and collect assessments within the District; sets the date and time of a public hearing for the District; and preliminarily approves the Annual Report.
FISCAL IMPACT
The cost of preparing all necessary reports required for the levy and collection of assessments will be borne by the property owners within the AD 22 boundaries. The not-to-exceed amount for the engineering services specified in the Scope of Services and Compensation attachment is $9,995, which will be paid by the Assessment District.
PUBLIC CONTACT
Public contact was made through posting of the City Council agenda on the City’s official notice bulletin board, at the Pleasant Hill Senior Center and at the Pleasant Hill Police Department. The agenda and staff report are posted on the City’s web page.
RECOMMENDED CITY COUNCIL ACTION
Adopt the proposed resolution.
ALTERNATIVES TO RECOMMENDED ACTION
The City Council may choose not to adopt the resolution directing Harris & Associates, Inc. to prepare and file the FY 2022/2023 Annual Report and provide direction to staff; however, this might jeopardize renewal of AD 22 for the upcoming fiscal year. If AD 22 were not renewed for FY 2022/2023, there would be a loss of approximately $58,561 in collected assessments that fund the maintenance activities within the boundaries of the district. The City would then need to fund these maintenance activities or maintenance would be suspended entirely.
ATTACHMENT(S):
Proposed Resolution
Boundary Maps
Harris & Associates Scope of Services and Compensation
Prepared by: Danielle K. Habr, Principal Management Analyst/City Clerk Reviewed by: Ananthan Kanagasundaram, Acting City Engineer Ethan Bindernagel, Community Development Director/Assistant City Manager Approved by: June Catalano, City Manager