CITY COUNCIL STAFF REPORT
Meeting Date: March 2, 2026
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
TITLE: ADOPT RESOLUTION NO. __-26 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 22
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 22.
The usage fee rate has not increased since 2002, and it is necessary to increase rates to address increases in operating costs and to fund needed maintenance along certain public streets and easements.
DISCUSSION
Background
Assessment District 22 (AD22) consists of two subdivisions: Grayson Woods, which was formed in 1997; and Gallery Walk, which was annexed into the District in 2002. The District 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 the AD 22 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 in Grayson Woods and electricity in both Grayson Woods and Gallery Walk. 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 AD22 have remained relatively unchanged.
The annual reports prepared by the Engineer of Record for FY2023/24 determined that several zones with 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. The City Council, at the June 5, 2023, City Council meeting, directed staff to pursue a Proposition 218 vote for AD22. 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 AD22. In June 2024, the City Council conducted a public hearing to review the proposed assessment rate increases to AD 22. The vote was conducted by majority protest and neither Grayson Woods nor Gallery Walk approved the assessment rate increase, leaving both zones underfunded. As a result, annual maintenance and services have been decreased commensurate with the funding available for Grayson Woods and Gallery Walk.
Annual utility and maintenance costs have continued to increase, and without the additional, needed funding, the services provided to the underfunded zones will continue to decrease, including irrigation in Grayson Woods, and landscaping, tree trimming and lighting repairs in both zones. 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. 6-25, designating SCI Consulting Group (SCI) as the City’s Engineer of Work, to provide Assessment Engineering and District Services to the City for AD20. 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 both Grayson Woods and Gallery Walk are still in a funding deficit, and without additional assessment revenue, the City will need to reduce further the level of services provided to each zone. SCI also recommended pursuing a new Proposition 218 vote 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 $45,788 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 focuses on 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 includes 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 AD22, 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 AD22 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 AD22 will be borne by the property owners within AD22. The not-to-exceed amount for the engineering services specified in the Professional Services Agreement is $45,788, 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