SCI CONSULTING GROUP - FIRST AMENDMENT (#2025363)

Page 2 of 3 For each LMD, City staff follows a statutorily imposed process for yearly administration. The engineer’s budget for each district includes a reserve fund to provide for the replacement of capital improvements such as planting, irrigation, decorative entry walls, signage, light fixtures, etc. Currently, the reserve funds are insufficient to cover these replacement costs. In July 2024, staff advertised a Request for Qualifications (RFQ) for financial and engineering services to update the Engineer’s Reports and provide Proposition 218-compliant balloting procedures for potential assessment increases. On October 1, 2024, the City Council approved the agreement with SCI Consulting Group, Inc. (SCI) based on their qualifications. The Engineer’s Reports approved by the City Council on June 17, 2025, allocated funding for a Proposition 218-compliant vote for the Ponderosa-Del Prado, Windsor, and Bonde Ranch LMDs and an updated Engineer’s Report for FY 2026/27 for the Oak Tree Farm and Moller Ranch LMDs. The reserve fund for each LMD will be utilized to fund the costs of the public outreach and balloting procedures required to increase the assessments to cover actual costs and to align with Proposition 218 requirements. DISCUSSION SCI’s scope of work initially included a Proposition 218-compliant voting process for Ponderosa-Del Prado and Moller Ranch for a total budget of $64,690. However, after research by City staff and discussions with outside counsel, staff determined that the Moller Ranch LMD did not require a Proposition 218 vote to increase assessments due to the approved assessment and inflation escalator at formation of the LMD. Instead, staff are taking a more comprehensive approach and requesting the approval of an amendment to the agreement with SCI to include public outreach and a Proposition 218-compliant vote to increase assessments for the Ponderosa-Del Prado, Windsor, and Bonde Ranch LMDs to address current funding deficiencies. SCI will also provide updated Engineer’s Reports for the Oak Tree Farm and Moller Ranch LMDs, which do not require a Proposition 218-compliant property owner vote due to the existing authority granted at formation and the inclusion of an inflation escalator. The LMD assessments have not been increased since the districts were formed, and staff was unable to find an approved inflation escalator for Ponderosa-Del Prado, Windsor, or Bonde Ranch, which has been the primary factor leading to the funding shortfall. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) Maintenance work within each LMD is categorically exempt from CEQA under Guidelines Section 15302, “Replacement or Reconstruction.” Moreover, under CEQA Guidelines Section 15378(b)(4), it is not a “project” as it is a government funding mechanism that does not involve a commitment to a specific project that may result in a potentially significant physical impact on the environment. EQUITY AND SUSTAINABILITY Not applicable, as this item is a routine matter of City business. OUTREACH Staff and the consultant will develop a public outreach plan to engage with LMD property owners prior to the Proposition 218 vote. Docusign Envelope ID: 44B46978-8C9D-4351-9282-8253FD108A26