June 3, 2025
Public Works
DATE: June 3, 2025
TO: Mayor Martinez and Members of the City Council
FROM: Daniel Chavarria, PE, Director of Public Works
Robert Armijo, PE, Deputy of Public Works Director / City Engineer
Jason Lacey, Parks & Landscaping Superintendent
Avinesh Nadan, Finance Manager II
Gabino Arredondo, Project Manager
Subject:
Preliminary Engineer’s Report and Intent to Levy
Assessments for Hilltop Landscape Maintenance District
(HLMD) for Fiscal Year (FY) 2025-2026
FINANCIAL IMPACT: The fiscal impact to the City for FY 2025-2026 relating to Hilltop Landscape Maintenance District (HLMD) is
$570,512. Of this amount, $320,152 relates to a 25
percent contribution towards salaries and benefits of full- time employees that is expensed directly in General
Fund. The remaining $250,360 represents cash
contribution towards HLMD for general benefits. This
amount shall be allocated as a transfer-out expenditure from the General Fund (Account string: 01917090-
400901) into the HLMD Fund budget as a transfer-in
revenue for FY 2025-2026 (Account string: 11233731-
391994). This cash contribution continues the City’s
longstanding practice, dating back to the FY 1998–99
Engineer’s Report, of funding the proportion of costs
determined to be of general benefit and not assessable
to private parcels.
PREVIOUS COUNCIL
ACTION:
June 4, 2024
AGENDA
REPORT
June 3, 2025
STATEMENT OF THE
ISSUE:
In accordance with Section 12.60.240 of the Richmond
Municipal Code and relevant State law, the City Engineer has prepared the Annual Levy Report for the Hilltop
Landscape Maintenance District for Fiscal Year 2025-
2026 (“Engineer’s Report”).
RECOMMENDED ACTION: ADOPT a resolution approving the preliminary Engineer’s Report for Fiscal Year 2025-2026 for the Hilltop
Landscaping Maintenance District; DECLARE the City
Council’s intention to increase and collect the annual
assessments; and schedule a public hearing about the
proposed increased assessment on June 24, 2025, at
5:00 PM in City Council Chambers at 440 Civic Center
Plaza in the City of Richmond – Public Works
Department (Daniel Chavarria 620-5478/Jason Lacey
620-6920).
DISCUSSION:
On June 23, 1998, the City Council adopted Resolution No. 91-98, approving the Engineer’s Report, establishing the rate of assessment, authorizing annual increases thereof, and ordering maintenance services within the Hilltop Landscape Maintenance District (District). The rate of assessment for this District must be confirmed annually by action of the City Council.
In accordance with Section 12.60.240 of the Richmond Municipal Code and State law, the first step in this process is to order the preparation of an Engineer’s Report of assessment for the 2025-2026 Fiscal Year (FY). As required by Section 12.060.250 of the Richmond Municipal Code, a copy of the report and a property owner response form will be mailed to all owners of real property subject to the annual benefit assessment as a subsequent part of the process. The City Council will be asked to hold a public hearing and accept the Engineer’s Report to then finalize the process.
The Hilltop Landscape Maintenance District (HLMD) was established to provide essential landscaping services and maintenance within its boundaries. The District encompasses various zones, each receiving tailored maintenance based on its unique needs and characteristics. The services include, but are not limited to, landscape maintenance, irrigation system repairs, graffiti removal, and the upkeep of public sound walls and signage.
In accordance with Section 12.60.240 of the Richmond Municipal Code and relevant State law, the City Engineer has prepared the Annual Levy Report for the Hilltop Landscape Maintenance District for Fiscal Year (FY) 2025-2026 (“Engineer’s Report”).
This report outlines the existing and proposed maintenance activities, and describes substantial changes to be made, and estimate the costs associated with these activities (Attachment 1).
June 3, 2025
The Engineer’s Report details the special benefits received by properties within the District, which include proximity to improved landscaped areas, enhanced views, and increased access to green spaces. These improvements directly benefit the properties, increasing their aesthetic appeal and usability. The report also complies with recent legal requirements to separate general benefits from special benefits, ensuring that only those properties directly benefiting from the maintenance services are assessed.
For the upcoming fiscal year, it is proposed that the assessments be adjusted by an inflation rate of three percent (3%) to account for increased maintenance costs and to ensure the continued high quality of services. This adjustment is in line with the provisions set forth by previous resolutions and legal mandates.
The total amount proposed to be assessed for FY 2025-2026 is detailed in the Engineer’s Report. The assessment ensures that the District can cover the necessary maintenance costs while maintaining a reserve fund for unforeseen expenses.
Additionally, the City’s contribution to the general benefit portion of the services will be included in the General Fund for FY 2025–2026. The total proposed assessment for the Hilltop LMD for the Fiscal Year (FY) 2025–2026 is $1,283,243. This amount includes the City contribution of staff salaries and benefits directly paid in the General Fund and the City's cash contribution of $250,360 for general benefits, which shall be included as a transfer-out in the General Fund into the Hilltop LMD Fund budget as a transfer-in for FY 2025–2026. In addition, the City also contributes 25 percent toward salaries and benefits of full-time employees, expensed directly in the General Fund, estimated at $320,152. The practice of making a general benefit contribution dates back to the original FY 1998–99 Engineer’s Report, which identified a portion of maintenance costs—then estimated at 10 percent—as benefiting the general public and not assessable to private parcels. That foundational approach continues to guide the City’s contribution methodology. The FY 2025–2026 budget supports the need for a 3 percent inflationary increase, which is proposed, and the proposed assessment on each parcel has been increased by 3 percent.
City staff recommends that the City Council adopt a resolution to preliminarily approve the attached preliminary Engineer’s Report and declare its intention to levy and collect assessments in the District for the fiscal year 2025-2026 (Attachment 2). A public hearing on the proposed assessments will be held at the City Council’s regular meeting on June 24, 2025, at 5:00 PM in the City Council Chambers at 440 Civic Center Plaza in the City of Richmond (Attachment 3). This hearing will provide an opportunity for property owners to review and discuss the proposed assessments before final consideration.
DOCUMENTS ATTACHED:
Attachment 1 – Hilltop Landscaping Maintenance District Engineer’s Report FY 25-26 Attachment 2 – Resolution
Attachment 3 – Notice of Public Hearing Hilltop Landscape Maintenance District Attachment 4 – FY 1998–99 Engineer’s Report for the HLMD (Historical Reference)