CITY COUNCIL STAFF REPORT
Meeting Date: June 05, 2023
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: PUBLIC HEARING AND ADOPT RESOLUTION NO. ___-23
APPROVING THE ENGINEER'S REPORT, CONFIRMING DIAGRAM
AND ASSESSMENT, AND ORDERING LEVY OF ASSESSMENTS FOR
FISCAL YEAR 2023-2024 IN ASSESSMENT DISTRICT NO. 20
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 special “benefit” from a public service or improvement. Assessment District No. 20 (“AD 20”), Commercial Landscaping and Lighting District, enables the City to provide landscape maintenance and street lighting at an enhanced level along commercial streets. The properties within the AD 20 boundaries directly benefit from these landscape and lighting improvements. The annual assessments paid by property owners within AD 20 and contributions by the City fund the maintenance and services provided.
In order for the City to continue to levy and collect assessments within AD 20 for the 2023/2024 fiscal year, an annual report must be prepared and the City must hold a public hearing. Staff requests that the City Council hold the Public Hearing and adopt the Resolution approving the Engineer’s Report, confirming the diagram and assessment, and ordering the levy of assessments for Fiscal Year 2023/2024 for AD 20.
DISCUSSION
Background
AD 20 was formed in 1988 pursuant to the provisions of the Landscaping and Lighting Act of 1972 and the California Streets and Highways Code. AD 20 was amended in 1999 by creating a new zone (Zone 6) that includes the Downtown area.
In order for the City to continue to levy and collect assessments within AD20 for Fiscal Year 2023/2024 (“FY 23/24”), a report on the proposed maintenance program must be prepared and a public hearing conducted on the budget and proposed assessments. The Engineer of Work, Harris & Associates, has completed and filed the FY 23/24 Annual Report (“Engineer’s Report”) with the City Clerk. The Engineer’s Report (Exhibit 1 to the Resolution) includes descriptions of the improvements to be maintained during the fiscal year, an estimate of costs, a map of the District and Zone boundaries, and the levy of assessments upon the benefiting properties.
Substantial changes in improvements that will begin in FY 23/24 in Zone 1 (paid from nonAssessment District funds) include: installing landscaping; shifting landscape water from domestic to recycled; replacing existing cobra-head lights with new, ornamental median and pedestrian lights; and adding a traffic signal at Contra Costa Boulevard and Alan Drive.
Maintenance costs for Zone 1 are estimated to remain the same in FY 23/24; and Substantial changes in improvements that will begin in FY 22/23 in Zone 6 (paid from nonAssessment District funds) include: replacing existing pear trees with Chinese pistachio trees; widening existing treewells; replacing the existing irrigation system with a new, updated irrigation system; installation of new brick pavers and sidewalk. Maintenance costs for Zone 6 are estimated to remain the same in FY 23/24.
There are no new or substantial changes in improvements proposed to be made in FY 23/24 in Zones 2, 3, 4, and 5.
Analysis
On February 6, 2023, the City Council adopted Resolution No. 5-23, a Resolution directing the preparation and filing of the 2023/2024 Engineer’s Report for maintenance of AD 20.
On May 15, 2023, the City Council preliminarily approved the Engineer’s Report for AD 20 and adopted a Resolution of Intention (“ROI”) to levy and collect assessments. In addition, the ROI provided notice of the date, time, and place for a public hearing by the City Council on the levy of the assessments within AD 22.
The collection of assessments from properties within the boundaries of AD 20, together with the funds provided by the City, will ensure continued maintenance of the lighting and landscaping improvements within the boundaries of AD 20. Maintenance staff provides for the maintenance of improvements, including weekly mowing and edging of turf; maintaining and repairing irrigation systems; pruning; removing debris and graffiti; repairing street lights; and weeding, as well as, paying for utility charges for water and electricity.
If AD 20 assessments are confirmed for FY 23/24, staff will continue to provide maintenance services for the District. The AD revenues include $431,901 in assessments collected from property owners within AD 20, $97,946 contribution from the General Fund, and estimated interest of $15,117 for a total of $544,964 in projected revenue.
Assessments are made upon the various properties within AD20 in proportion to the estimated special benefits received. As part of establishing special benefit, properties within the District are divided into six zones of improvement with different assessments based on the amount of special benefit conferred. The City tracks the cost of maintaining the improvements, including incidental expenses, within each zone. Contributions from the City’s General Fund are made by the City in Zones 1, 2, 3, 5 and 6 to offset benefits shared with the general public. In Zone 4, in lieu of a contribution, the City pays for the cost to maintain a portion of the Canal Trail median at Gregory Lane. Assessment rates have been established in each zone based upon acreage, street frontage and benefit received. These rates are listed in the attached Engineer’s Report.
The reserve fund for Zone 1 was depleted at the end of FY22/23. Staff recommends conducting a property owner assessment ballot process within Zone 1 so that assessment rates can be increased above the current allowable maximum.
The reserve fund for Zone 6 will be depleted at the end of FY23/24. Staff recommends conducting a property owner assessment ballot process within Zone 6 so that assessment rates can be increased above the current allowable maximum.
FISCAL IMPACT
The City of Pleasant Hill will contribute approximately $97,946 from the General Fund toward the landscape and lighting costs. This contribution is intended to offset the portion of the landscape and lighting improvements that provide shared benefit to both the general public, and in particular, those properties that are not in the District and are in front of or lie adjacent to District improvements, within the City’s right of way. Should AD 20 not be renewed for FY 23/24, there would be a loss of $431,901 in assessment revenues to fund maintenance activities within AD 20.
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
Open, conduct, and close the Public Hearing and adopt the Resolution Approving the Engineer’s Report, confirming the diagram and assessment, and ordering levy of assessment for FY 23/24.
ALTERNATIVES TO RECOMMENDED ACTION
Should the Assessment District not be renewed for FY 23/24, there would be a loss of $431,901 in assessment revenues to fund maintenance activities within AD20. The City would need to fund these maintenance activities or services would need to be suspended or substantially reduced
ATTACHMENT(S):
Proposed Resolution
Exhibit 1 - Engineer’s Report
Prepared by: Ann James, Public Works Manager
Approved by: June Catalano, City Manager