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 ASSESSMENTS, AND ORDERING LEVY OF ASSESSMENTS FOR
FY2023-2024 IN 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 special “benefit” from a public service or improvement. Assessment District No. 22 (“AD 22”) enables the City to provide levels of landscape maintenance and street lighting at an enhanced level within the scenic easements in the Grayson Woods and Gallery Walk Subdivisions. The properties within the AD 22 boundaries directly benefit from these landscape and lighting improvements. The annual assessments paid by property owners within AD 22 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 22 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 22.
DISCUSSION
Background
AD 22 (Grayson Woods) was formed in 1997 pursuant to the provisions of the Landscaping and Lighting Act of 1972 and the California Streets and Highways Code. AD 22 was amended in 2002 to include Subdivision 8304, Gallery Walk.
In order for the City to continue to levy and collect assessments within the Assessment District 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 Grayson Woods and Gallery Walk, and the levy of assessments upon the benefiting properties.
Analysis
On February 6, 2023, the City Council adopted Resolution No. 7-23, a Resolution directing the preparation and filing of the 2023/2024 Engineer’s Report for maintenance of AD 22.
On May 15, 2023, the City Council preliminarily approved the Engineer’s Report for AD 22 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 22, together with the funds provided by the City, will ensure continued maintenance of the lighting and landscaping improvements within the boundaries of AD 22. 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 22 assessments are confirmed for FY 23/24, staff will continue to provide maintenance services for Grayson Woods and Gallery Walk. The AD revenues include $61,583 in assessments collected from property owners within AD 22, an $8,493 contribution from the General Fund, and estimated interest of $780, for a total of $70,856 in projected revenue.
The assessment rate remains at $187.50 for Gallery Walk and no new services or substantial changes in existing services are proposed.
As described in the May 2023 staff report accompanying the ROI, a potential Reliez Valley slope stabilization project has been budgeted at $25,000 for FY 22/23 in the Grayson Woods subdivision. If approved, the assessment rate in Grayson Woods will increase 5.598% above the FY 22/23 rate to maintain a healthy capital set-aside in the fund. This increase is $17.90 -- $319.84 per parcel to $337.74 per parcel. The new rate is approximately $21.26 below the Maximum (approved) Assessment Rate of $359 for Grayson Woods. Staff sent letters to all of the affected property owners and as of the submission of this staff report for the agenda packet, has not received any correspondence or calls from the noticed property owners.
FISCAL IMPACT
The City of Pleasant Hill will contribute approximately $8,493 ($2,437 for Grayson Woods and $6,056 for Gallery Walk) 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 benefit to the general public in areas located adjacent to public roadways within the City’s right of way. Should AD 22 not be renewed for FY 23/24, there would be a loss of $61,583 in assessment revenues to fund maintenance activities within AD 22.
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 2023/2024.
ALTERNATIVES TO RECOMMENDED ACTION
Should the Assessment District not be renewed for FY 2023/24, 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