CITY COUNCIL STAFF REPORT
Meeting Date: March 2, 2026
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
TITLE: ADOPT RESOLUTION NO. __ AUTHORIZING THE CITY MANAGER
TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH SCI
CONSULTING GROUP TO PROVIDE ASSESSMENT ENGINEERING
SERVICES FOR A PROPOSED ASSESSMENT RATE INCREASE
WITHIN ASSESSMENT DISTRICT 20
SYNOPSIS
The purpose of this item is to authorize a Professional Services Agreement with SCI Consulting Group, to provide Assessment Engineering Services for proposed assessment rate increases within Assessment District 20.
The usage fee rate has not increased since 1999, and it is necessary to increase rates to address increases in operating costs and to fund needed maintenance along certain commercial streets within the district.
DISCUSSION
Background
Assessment District 20 (AD20), Zones 1 – 6, is governed by the Landscape and Lighting Act of 1972. AD20 Zone (1- 5) was formed in 1988 and funds the maintenance of lighting, landscaping and sidewalks at an enhanced level along certain commercial streets. AD 20 was amended in 1999 to create a new zone (Zone 6) that includes the Downtown area.
These landscape and lighting improvements are considered to be of direct benefit to the properties within the AD 20 boundaries. The maintenance activities include weekly mowing and edging of turf; maintenance and repair of irrigation systems; pruning, weeding, and debris removal; graffiti removal; streetlight repair; and 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 Assessment District. Over the past several years the annual maintenance and servicing costs have increased while the assessment rates for AD20 have remained relatively unchanged.
The annual reports prepared by the Engineer of Record for FY2023/24 determined that several zones with AD20 were either in a funding deficit or trending in that direction, and without additional assessment revenue, the City would need to reduce the level of services provided to each zone. The City Council, at the June 5, 2023, City Council meeting, directed staff to pursue a Proposition 218 vote for AD20. The purpose of the Proposition 218 vote was to establish an increased assessment rate for the under-funded zones and to incorporate an annual escalation factor to keep pace with inflation.
On February 26, 2024, the City Council approved Resolution No. 20-24 authorizing the Engineer of Record (Harris and Associates) to perform Assessment Engineering Services for a Proposed Rate Increase for AD20. In June 2024, the City Council conducted a public hearing to review the proposed assessment rate increases to AD 20. The vote was conducted by majority protest and only Zone 4 and Zone 5B approved the assessment rate increase, leaving the remaining zones underfunded. As a result, annual maintenance and services have been decreased commensurate with the funding available for Zones 1, 2, 3, 5A and 6.
Annual utility and maintenance costs have continued to increase, and without the additional, needed funding, the services provided to the under-funded zones will continue to decrease, including irrigation, landscaping, tree trimming, and lighting repairs. To obtain additional funding, the City Council recommended staff pursue a second Proposition 218 vote. To that end, in December 2024, staff issued an RFP for a new Engineer of Work, with a focus on contracting with a consultant who demonstrated a proven track record for obtaining successful Proposition 218 results.
In February 2025, the City Council approved Resolution No. 4-25, designating SCI Consulting Group (SCI) as the City’s Engineer of Work, to provide Assessment Engineering and District Services to the City. These services included an initial and comprehensive Proposition 218 compliance, parcel and assessment levy audit.
SCI’s first order of work was to conduct the comprehensive Proposition 218 Compliance, Parcel and Levy audit during the first levy year for AD20. This audit, now complete, reviewed all parcels and levy data to ensure accuracy and compliance with Proposition 218 and the assessment methodology. Additionally, the audit identified discrepancies, validated assessment methodologies, and established a solid foundation for ongoing levy administration.
The annual reports prepared by SCI in June 2025 for FY2025/26 funding determined that several zones (Zone 1, 2, 3, 5A, and 6) within AD20 are still in a funding deficit, and without additional assessment revenue, the City will need to further reduce the level of services being provided to each zone. Additionally, the results of the audit indicated that not every parcel contained within the boundaries of AD 20 are being accurately assessed, and SCI is also recommending a new Proposition 218 vote. The purpose of this vote is to ensure Proposition 218 compliance, establish an increased assessment rate for all the parcels within the under-funded zones, and to incorporate an annual escalation factor to keep pace with inflation.
Analysis
On December 9, 2025, SCI submitted a proposal for Assessment Engineering and Proposition 218 Balloting Services (see Exhibit A) for proposed new assessment rate measures. The scope of work includes preparation of new engineer’s reports, all required assessment engineering, and a clear, non-advocacy informational outreach program to support the City through each phase of the Proposition 218 process.
SCI’s cost proposal for the work is $81,892 and includes the following:
Discovery and Assessment Review – this task involves evaluating the 2024 ballot outcome, reviewing available materials and identifying concerns, informational gaps, and zonespecific issues Informed Outreach Preparation – this task involves developing a targeted, factual, and informational outreach strategy based on the findings from Task 1, including zone specific communication and dedicated outreach for key property-owner groups Initial Planning and Preliminary Assessment Engineering – this task involves early project planning and preliminary assessment engineering to establish the foundation for potential assessment measures
Assessment Engineering and Engineer’s Reports – this task involves developing the final assessment methodology, determining the proposed assessment for each parcel, preparing the Engineer’s reports, and finalizing the assessment measures and messaging plans Non-Advocacy Property Owner Informational Outreach Services – to ensure a successful outcome, SCI will advise and support staff with non-advocacy outreach before and during the ballot proceeding, providing the public with clear and accurate information about the proposed assessments
Proposition 218 Ballot Proceeding Services – SCI will assist and fully support staff with the Proposition 218 ballot proceedings, including resolutions, designing, mailing and tabulating official notices and assessment ballots, as well as conducting the public ballot tabulations.
The project will be based on the requirements of the 1972 Act and Proposition 218. SCI’s team understands the requirements of Proposition 218 and the importance of developing a strategy that will minimize the risk of a challenge. Based on SCI’s experience as the current Engineer of Work for AD20, and their familiarity with the City and staff, Engineering staff believes SCI is uniquely qualified to complete the work efficiently, and with minimal guidance. Their knowledge of the Proposition 218 process and AD20 will allow them to quickly answer questions from the City Council, staff and the general public, while maintaining and protecting the best interests of the City, and to ensure 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 will be borne by the property owners within AD20. The not-to-exceed amount for the engineering services specified in the Professional Services Agreement is $81,892, 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 Resolution.
ALTERNATIVES TO RECOMMENDED ACTION
None recommended.
ATTACHMENT(S)
Proposed Resolution
Exhibit A – Cost Proposal
Exhibit B – Agreement
Prepared by: Ann James, Public Works Director
Reviewed by: Janet Coleson, City Attorney
Approved by: Ethan Bindernagel, City Manager