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. 20 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. 20 (“AD 20”) enables the City to provide landscape maintenance and street lighting at an enhanced level along commercial streets. Theses landscape and lighting improvements are considered to be of direct benefit to the properties within AD 20’s boundaries. The funding for the maintenance and services is provided through annual assessments paid by the benefiting property owners of parcels within AD 20 and contributions by the City.
In order for the City to continue to levy and collect assessments within the Assessment District for the 2026/2027 fiscal year, 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 20 for the 2026/2027 fiscal year and give notice of the time and place for a public hearing on the levy of the assessments.
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 2026/2027 fiscal year (“FY 26/27”), the City Council adopted a resolution on February 2, 2026, directing the Engineer of Work to prepare an annual report. The Engineer of Work, SCI Consulting Group, has completed and filed the annual report (attached) for FY 2026/2027 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 2026/2027. In 2024 property owners approved new Proposition 218 measures for Zone 4 and 5B, those changes are reflected in the attached Engineers 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. 7-26, adopted February 2, 2026, requested consent from the City of Concord to collect AD 20 assessments for FY 26/27.
A resolution of intention to collect assessment 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 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 26/27, 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 26/27 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 were increased by the allowable CPI in FY 25/26 and are proposed to be increased by the allowable CPI in FY 26/27. These CPI-adjusted 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 $9,200, 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 Zones 1, 2, 3, 5 and 6 to offset benefits shared with the general public. In Zone 4, the total cost of the improvements has been reduced by a contribution from the City, as detailed in the Engineer’s Report. 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 $132,886 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
Move to adopt the Resolution of Intention to Levy and Collect Assessments within AD 20 for the 2026/2027 fiscal year and give notice of a public hearing on July 13, 2026.
ALTERNATIVES TO RECOMMENDED ACTION
Should the City Council decline to renew the Assessment District for the 2026/2027 fiscal year, there would be a loss of $477,127 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
AD 20 Engineer’s Report
Prepared by: Ann James, Public Works Director
Reviewed by: Erick Cheung, Chief Financial Officer
Approved by: Ethan Bindernagel, City Manager