CITY COUNCIL STAFF REPORT
Meeting Date: July 7, 2025
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
TITLE: PUBLIC HEARING AND ADOPT RESOLUTION NO. ___-25 APPROVING
THE ENGINEER'S REPORT, CONFIRMING DIAGRAM AND ASSESSMENT, AND ORDERING LEVY OF ASSESSMENTS FOR FISCAL YEAR 2025-2026 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 2025/2026 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 2025/2026 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. Upon formation, AD 20 consisted of five zones. AD 20 was amended in 1999 to create a new zone (Zone 6) that includes the Downtown area.
In order for the City to continue to levy and collect assessments within the Assessment District for the 2025-2026 fiscal year (“FY 25-26”), the City Council adopted a resolution directing the Engineer of Work to prepare an annual report at its February 3, 2025 meeting. The Engineer of Work, SCI Consulting Group, has completed and filed the annual report (attached) for FY 2025- 2026 with the City Clerk. The Annual Report includes descriptions of the improvements to be made during the fiscal year, an estimate of costs, and the levy of assessments upon the benefiting properties.
There are no new substantial improvements planned; therefore, the maintenance costs funded by Zone 1, Zone 2, Zone 3, and Zone 5A, are estimated to remain unchanged in FY 2025-2026. In 2024, property owners approved new Proposition 218 measures for Zone 4 and 5B, those changes are reflected in the attached Engineer’s Report.
There are 17 properties within the AD 20 boundaries that are located in the City of Concord: eight properties are located east of Contra Costa Boulevard and south of Sun Valley Boulevard; the Sun Valley Mall Shopping Center contains six properties, and the remaining three properties are east of Contra Costa Boulevard and south of Concord Avenue at the on-ramp to Interstate Freeway 680. The City of Concord has granted the City of Pleasant Hill authority to levy assessments on these properties since the District was established. This authority must be requested and granted annually. Pleasant Hill Resolution No. 5-25, adopted February 3, 2025, requested consent from the City of Concord to collect AD 20 assessments for FY 25-26.
Analysis
The collecting of assessments from properties within the boundaries of AD 20, together with the funds provided by the City, will ensure continued maintenance of lighting and landscape improvements within the boundaries of the District. City Maintenance staff provides for the maintenance of improvements, with the exception of the Downtown along Crescent Drive and Crescent Plaza (the Downtown property management contracts for maintenance work in the Downtown and is reimbursed by the Assessment District). The maintenance activities include weekly mowing and edging of turf; the maintenance and repair of irrigation systems; pruning; debris and graffiti removal; streetlights repair; maintenance and weeding; as well as monitoring and authorizing payment for utility charges for water and electricity.
If AD 20 assessments are confirmed for FY 25-26, staff will continue to provide maintenance services for the District. The source of funds to provide the necessary maintenance and services is derived from annual assessments collected from property owners within six zones in the District.
The attached Engineer’s Report lists the projected fund balances and proposed revenues and expenditures for FY 25-26 per zone. Expenses in Zones 1 and 6 continue to exceed revenue; staff will work with the AD Engineer to identify ways to reduce expenses and increase assessments.
The reserve fund for Zone 6 was depleted by the end of FY 22-23. Assessments for the Zone are proposed to be increased by the allowable CPI in FY 25-26. Increasing the assessments, however, are not sufficient to meet the estimated expenses. The estimated cost for the preparation and filing of all necessary reports required to continue the levy and collection of assessments is $13,940, which will be paid from the fund.
Assessments are made upon the various properties within the District in proportion to the estimated special benefits received. As part of establishing special benefits, properties within the District are divided into six zones of improvement noted above with different assessments based on the amount of special benefits 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 the Zones 1, 2, 3, 4, 5A, 5B and 6 to offset benefits shared with the general public.
Maintenance costs are monitored every few years and City contributions are adjusted accordingly.
Assessment rates have been established in each zone based upon acreage, street frontage, and benefit. These rates are listed in the attached Engineer’s Report.
FISCAL IMPACT
The City of Pleasant Hill annually contributes $113,851 from the General Fund toward the landscaping and lighting costs for AD 20. This contribution is intended to offset the portion of the landscaping and lighting improvements that provide shared benefit to both the general public and, in particular, those properties outside the District, but contiguous to District improvements in areas adjacent to or within the City’s right of way.
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 25/26.
ALTERNATIVES TO RECOMMENDED ACTION
Should the City Council decline to renew the Assessment District for the 2025-2026 fiscal year, there would be a loss of $471,512.44 in assessment revenues that fund maintenance activities within AD 20. The City would need to fund these maintenance activities, or the services would need to be suspended or substantially reduced.
ATTACHMENT(S)
Proposed Resolution
Exhibit 1 – City of Pleasant Hill. Assessment District 20 Engineer’s Report, June 2025.
Prepared by: Ann James, Public Works Director
Approved by: Ethan Bindernagel, City Manager