CITY COUNCIL STAFF REPORT
Meeting Date: February 06, 2023
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: ADOPT RESOLUTION NO. ___-23 DIRECTING THE PREPARATION AND FILING OF THE 2023/2024 ANNUAL REPORT FOR ASSESSMENT DISTRICT NO. 20 (COMMERCIAL AREA LANDSCAPE AND
LIGHTING) AND ADOPT RESOLUTION NO. ___-23 REQUESTING
CONSENT FROM THE CITY OF CONCORD FOR ORDERING OF
IMPROVEMENTS AND ASSESSMENTS OF COSTS FOR BENEFITED
PROPERTY IN ASSESSMENT DISTRICT NO. 20
SYNOPSIS
An assessment district is a financial mechanism that allows for the levy of assessments 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. 20 (AD 20) enables the City to provide landscape maintenance and street lighting at an enhanced level along certain commercial streets. These landscape and lighting improvements are considered to be of direct benefit to the properties within AD 20 boundaries. The funding for the maintenance and services is provided through annual assessments paid by benefiting property owners of parcels located within AD 20. A total of 17 properties within AD 20’s boundaries are located in the City of Concord. The City annually requests consent from the City of Concord to grant the authority to levy assessments on these benefiting properties.
In order for the City to continue to levy and collect assessments within AD 20 for the upcoming fiscal year (FY 2023/2024) that begins on July 1, 2023, 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 2023/2024 Annual Report for AD 20; and adopt the proposed resolution requesting consent from the City of Concord for ordering improvements and assessments of costs for benefitted properties within AD 20.
DISCUSSION
Background
AD 20 was formed in 1988 pursuant to the provisions of the Landscape and Lighting Act of 1972, which is part of the California Streets and Highways Code. AD 20 was amended in 1999 by creating a new zone (Zone 6) that includes the Downtown area (see attached map). The District enables the City to collect assessments from property owners in order to provide landscape maintenance and street lighting at an enhanced level and quality along certain commercial streets.
These services are considered to be of direct benefit to the properties within AD 20’s boundaries.
The costs to provide these services have been paid annually by the benefiting property owners.
There are 17 properties within AD 20’s boundaries that are located in the City of Concord. Eight of these properties are located east of Contra Costa Boulevard and south of Sun Valley Boulevard. The Sun Valley Mall Shopping Center contains six properties. The remaining three properties are east of Contra Costa Boulevard and south of Concord Avenue at the on-ramp to Interstate 680. The City of Concord has granted the City of Pleasant Hill authority to levy assessments on these properties since AD 20 was established. This authority must be requested and granted annually. A resolution requesting consent from the City of Concord for FY 2023/2024 is attached.
Analysis
The collecting of assessments from properties within the boundaries of AD 20 will ensure continued maintenance of lighting and landscape improvements. The maintenance activities include weekly mowing and edging of turf; maintenance and repair of irrigation systems; pruning; debris removal; graffiti removal; streetlight repair, weeding, as well as utility charges for water and electricity. In order for the City to continue to levy and collect assessments within AD 20 in FY 2023/24, the City Council must approve an Annual Report prepared by the District Engineer that includes descriptions of the improvements to be made 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 20. Staff was satisfied with the annual reports that Harris produced for the three assessment cycles from FY2020/2021 through FY 2022/2023.
Accordingly, staff accepted the firm’s proposal to prepare the Annual Report for FY 2023/2024 and submit the assessments to the County Auditor for placement on the Property Tax Roll. A notto-exceed fee of $21,689 will provide for these services.
Once the FY 2023/2024 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 AD 20. The not-to-exceed amount for the engineering services specified in the Scope of Services and Compensation attachment is $21,689 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 resolutions.
ALTERNATIVES TO RECOMMENDED ACTION
The City Council may choose not to adopt the resolutions directing Harris & Associates, Inc. to prepare and file the FY 2023/2024 Annual Report and requesting consent from the City of Concord and provide direction to staff; however, this might jeopardize renewal of AD 20 for the upcoming fiscal year. If AD 20 were not renewed for FY 2023/2024, there would be a loss of approximately $425,000 in assessment revenues that fund the maintenance activities within the boundaries of AD 20. The City would then need to fund these maintenance activities or maintenance would be suspended entirely.
ATTACHMENT(S):
Proposed Resolution
Proposed Resolution (City of Concord)
Boundary Map
Harris & Associates Scope of Services and Compensation
Prepared by: Danielle K. Navarro, Principal Management Analyst/City Clerk Reviewed by: Ananthan Kanagasundaram, City Engineer
Ethan Bindernagel, Community Development Director/Assistant City Manager Approved by: June Catalano, City Manager