CITY COUNCIL STAFF REPORT
Meeting Date: February 26, 2024
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: ADOPT RESOLUTION NO. ___-24 AUTHORIZING THE CITY
MANAGER TO EXECUTE A PROFESSIONAL SERVICES
AGREEMENT WITH HARRIS & ASSOCIATES FOR ASSESSMENT
ENGINEERING SERVICES FOR A PROPOSED ASSESSMENT RATE
INCREASE FOR ASSESSMENT DISTRICT 20 AND ASSESSMENT
DISTRICT 22
SYNOPSIS
The purpose of this item is for the City Council to authorize the City Manager to execute a Professional Services Agreement with Harris & Associates, to provide Assessment Engineering Services for proposed assessment rate increases within Assessment District 20 and Assessment District 22.
DISCUSSION
Background
An assessment district is a financial mechanism that allows for the levy of assessments on a specific geographic area or parcels of real estate that have been identified as receiving a direct and special “benefit” from a public improvement or service. The City has two assessment districts:
Assessment District 20 (AD20), Zones 1 – 6, and Assessment District 22 (AD22), both of which are governed by the Landscape and Lighting Act of 1972. AD20 was formed in 1988 and funds the maintenance of lighting, landscaping, and sidewalks at an enhanced level along certain commercial streets. AD22 consists of two subdivisions: Grayson Woods, which was formed in 1997; and Gallery Walk, which was annexed into AD22 in 2002. AD22 pays for the ongoing maintenance and servicing of landscaping and lighting improvements along public streets and easements within the District.
These landscape and lighting improvements are considered to be of direct benefit to the properties within AD20 and AD22 boundaries. The maintenance activities include weekly mowing and edging of turf; maintenance and repair of irrigation systems; pruning; weeding; debris removal; graffiti removal; streetlight repair; as well as utility charges for water and electricity. The funding for the maintenance and services is provided through annual assessments paid by benefiting property owners within the two Assessment Districts. Over the past several years, the annual maintenance and servicing costs have increased while the assessment rates for AD20 and AD22 have remained relatively unchanged.
Harris & Associates has been the City’s Engineer of Work since 2019, helping the City to confirm there are secure funding sources for the ongoing maintenance within the Districts. The annual reports prepared by Harris & Associates for FY2023/24 determined that the zones within AD20 and AD22 were either in a funding deficit or trending in that direction, and without additional assessment revenue, the City would have to reduce the level of services being provided to each zone within AD20, as well as AD22, commensurate with the available funds. The City Council, at the June 5, 2023 City Council meeting, directed staff to pursue a Proposition 218 vote for both AD20 and AD22 to establish an increased assessment rate for the under-funded zones and to incorporate an annual escalation factor to keep pace with inflation.
Analysis
On October 11, 2023, Harris & Associates submitted a proposal for Assessment Engineering Services (see Exhibit A) for proposed assessment rate increases in AD20 and AD22. A list of zones and the recommended actions to be taken for each is listed below. The zones shown are either being supplemented by the City’s General Fund, because they do not generate sufficient revenues from the annual assessments, and/or they were created prior to the implementation of Proposition 218, and as a result have an annual escalation clause written into the method of assessment.
• AD20, Zone 1 – Assessment Rate Increase and Annual Escalator • AD20, Zone 2 – Annual Escalator only
• AD20, Zone 3 – Annual Escalator only
• AD20, Zone 4 – Annual Escalator only
• AD20, Zone 5-A – Annual Escalator only
• AD20, Zone 5-B – Assessment Rate Increase and Annual Escalator • AD20, Zone 6 – Assessment Rate Increase and Annual Escalator • AD22, Grayson Woods – Assessment Rate Increase and Annual Escalator • AD22, Gallery Walk – Annual Escalator only
Harris & Associates cost proposal for the work is $39,310 and includes the following:
• Evaluation of Funding Needs
• Preparation of the Engineer’s Reports, Staff Reports and Resolutions • Outreach and Public Meetings
• Preparation of Property Owner Notice and Mailed Ballot The project will include the preparation of an Engineer’s Report for each District, based on the requirements of the 1972 Act and Proposition 218. Harris & Associates team understands the requirements of Proposition 218 and the importance of developing a strategy that will minimize the risk of a challenge. Based on Harris & Associates’ experience as the Engineer of Work for AD20 and AD22, and the firm’s familiarity with the City and City personnel, staff believes the firm is uniquely qualified to complete the work efficiently and with minimal guidance. Harris & Associates’ historical knowledge of the assessment districts enables the firm to quickly answer questions from the City Council, staff, and the general public, while maintaining and protecting the best interests of the City and ensuring a positive outcome.
FISCAL IMPACT
The cost of preparing all necessary reports required for the Assessment Engineering Services for the Proposed Assessment Rate Increases for AD20 and AD22 will be borne by the property owners within AD20 and AD22. The not-to-exceed amount for the engineering services specified in the Professional Services Agreement is $39,310, which will be paid by the Assessment Districts.
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
None Recommended.
ATTACHMENT(S):
Proposed Resolution
Exhibit A – Cost Proposal and Scope of Work
Exhibit B – Agreement
Prepared by: Ann James, Public Works Manager
Reviewed by: Erick Cheung, Finance Manager
Approved by: Ethan Bindernagel, City Manager