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 NO. 22 AND AUTHORIZING THE CITY MANAGER TO
EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH
HARRIS AND ASSOCIATES, INC.
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 within AD 22.
In order for the City to continue to levy and collect assessments within AD 22 for the 2024/2025 fiscal year, an Annual Report is required. The Annual Report will 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 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 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 $14,766.25 will provide for these services. Harris & Associates has not increased their fee from 2023-2024 fiscal year for this service. 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 the AD 22 boundaries. The not-to-exceed amount for the engineering services specified in the Professional Services Agreement is $14,766.25, 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
Should AD 22 not be renewed for the 2024/2025 fiscal year, there would be a loss of approximately $62,682 in collected assessments to fund revenue maintenance activities within AD
22. The City would then need to fund these maintenance activities or maintenance would be suspended.
ATTACHMENT(S):
Proposed Resolution
Exhibit 1 - Professional Services Agreement
Boundary Maps
Prepared by: Ann James, Public Works Manager
Reviewed by: Erick Cheung, Finance Manager
Approved by: Ethan Bindernagel, City Manager