CITY COUNCIL STAFF REPORT
Meeting Date: June 1, 2026
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
TITLE: ADOPT RESOLUTION NO. -26 APPROVING INTENTION TO LEVY
AND COLLECT ASSESSMENTS AND TO PROVIDE FOR PUBLIC
HEARING AND NOTICE IN ASSESSMENT DISTRICT NO. 22 FOR
FISCAL YEAR 2026/2027
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 of parcels within AD 22.
In order for the City to continue to levy and collect assessments within the Assessment District for the 2026/2027 fiscal year (FY 26/27), an Annual Report must be prepared and the City must hold a public hearing. Staff requests that the City Council adopt a Resolution of Intention to Levy and Collect Assessments within AD 22 for FY 26/27 and give notice of the time and place for a public hearing on the levy of the assessments.
DISCUSSION
Background
AD 22 (Grayson Woods) was formed in 1997 pursuant to the provisions of the Landscaping and Lighting Act of 1972 of the California Streets and Highways Code. AD 22 was amended in 2002 to include Subdivision 8304, Gallery Walk.
In order for the City to continue to levy and collect assessments within the Assessment District for FY 26/27, the City Council adopted a resolution directing the Engineer of Work to prepare an annual report at its February 2, 2026 meeting. The Engineer of Work, SCI Consulting Group, has completed and filed the annual report (attached) for FY 26/27 with the City Clerk. The Annual Report includes descriptions of the improvements proposed during the fiscal year, an estimate of costs, and the levy of assessments upon the benefiting properties.
There are no new services or substantial changes in existing services proposed for FY 26/27 in the Gallery Walk subdivision. The Gallery Walk subdivision has sufficient capital set-aside funds for a future capital project; therefore, staff is recommending that the assessment rate remain at $187.50 for FY26/27, a rate that ensures the capital set-aside fund remains healthy.
There are no new services or substantial changes in existing services proposed for FY26/27 in the Grayson Woods subdivision. The assessment rate is at the maximum authorized amount of $359.00 and is recommended to remain at that rate for FY26/27. This rate is necessary to ensure adequate funding for the ongoing maintenance and operations of the AD.
A resolution of intention to collect assessments for FY 26/27 and call for a public hearing on July 13, 2026, is attached.
Analysis
The collecting of assessments from properties within the boundaries of AD 22, 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 the improvements. 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 paying for utility charges for water and electricity.
If AD 22 assessments are confirmed for FY 26/27, staff will continue to provide maintenance services for Grayson Woods and Gallery Walk. The assessment revenues total $63,890 for this year, which includes the assessment adjustments mentioned above. Staff and the Engineer of Work are making every effort to control expenditures related to managing, maintaining, and servicing AD 22 landscape and lighting improvements.
The estimated cost for the preparation and filing of the annual report is not to exceed $9,200, a cost borne by the District and divided proportionately between Grayson Woods and Gallery Walk.
FISCAL IMPACT
The City of Pleasant Hill contributes a percentage of funding each year from the General Fund toward landscape and lighting costs for both development areas. This contribution is intended to offset the portion of the landscape and lighting improvements that provide benefit to the general public in areas located adjacent to public roadways within the City’s right of way. The proposed General Fund contribution for FY 26/27 is $14,676 ($3,749 for Grayson Woods and $10,927 for Gallery Walk).
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
Move to adopt the Resolution of Intention and provide notice of a public hearing on July 13, 2026, on the levy of assessments in Assessment District No. 22 for Fiscal Year 2026/2027
ALTERNATIVES TO RECOMMENDED ACTION
Should AD 22 not be confirmed for FY 26/27, there would be a loss of $63,890 in assessment revenues to fund maintenance activities within AD 22. The City would need to fund these maintenance activities or services would need to be suspended or substantially reduced.
ATTACHMENT(S)
Proposed Resolution
AD 22 Engineer’s Report
Prepared by: Ann James, Public Works Director
Reviewed by: Erick Cheung, Chief Financial Officer
Approved by: Ethan Bindernagel, City Manager