CITY COUNCIL STAFF REPORT
Meeting Date: January 22, 2024
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: ADOPT RESOLUTION NO. ___-24 DIRECTING THE PREPARATION AND FILING OF THE 2024/2025 ANNUAL REPORT FOR ASSESSMENT DISTRICT 20 (COMMERCIAL AREA LANDSCAPE AND LIGHTING)
AND AUTHORIZING THE CITY MANAGER TO EXECUTE A
PROFESSIONAL SERVICES AGREEMENT WITH HARRIS AND
ASSOCIATES, INC., AND RESOLUTION NO. ___-24 REQUESTING
CONSENT FROM THE CITY OF CONCORD FOR ORDERING OF
IMPROVEMENTS AND ASSESSMENTS OF COSTS FOR BENEFITED
PROPERTY IN ASSESSMENT DISTRICT 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 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 2024/2025 fiscal year, an Annual Report is required. 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.
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 the 2024/2025 fiscal year 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 for the 2024/2025 fiscal year, the District Engineer has to prepare an Annual Report. The Annual Report will include 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 selected Harris & Associates, Inc. (Harris) in December 2019 as the Engineer of Work.
Staff was satisfied with Harris’s work on the 2022/2023 and 2023/2024 assessment cycles and accepted their proposal for 2024/2025 to prepare the Annual Report and submit the assessments to the County Auditor for placement on the Property Tax Roll. A not-to-exceed fee of $21,688.75 will provide for these services. This fee remains the same as 2023/2024 fiscal year. Each year, a new Professional Services Agreement is required and is attached for the Council’s consideration.
Once the 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 Professional Services Agreement is $21,688.75, 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
Should Assessment District 20 not be renewed for the 2024/2025 fiscal year, there would be a loss of approximately $437,220 in assessment revenues to fund maintenance activities within AD
20. The City would then need to fund these maintenance activities or maintenance would be suspended.
ATTACHMENT(S):
Proposed Resolution
Exibit 1 - Professional Services Agreement
Proposed Resolution of Intention (City of Concord)
Boundary Map
Prepared by: Ann James, Public Works Manager
Reviewed by: Erick Cheung, Finance Manager
Approved by: Ethan Bindernagel, City Manager