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Page 2 of 6 <br />2. Initiate proceedings for the formation of Bonde Ranch Landscape Maintenance District <br />2026-2 to replace Landscape Maintenance District 1993-2 (Bonde Ranch). <br />3. Designate SCI Consulting Group as Engineer of Work and direct the preparation of <br />Engineer’s Reports for both proposed districts in accordance with the Landscaping and <br />Lighting Act of 1972 and Article XIIID of the California Constitution. <br /> <br /> <br />BACKGROUND <br />The Landscaping and Lighting Act of 1972, codified in Division 15, Part 2, Chapter 2, Sections <br />22500 et seq. of the California Streets and Highways Code, authorizes local agencies to <br />impose annual assessments on real property that receives a special benefit from the <br />installation, maintenance, and servicing of landscaping and lighting improvements. These <br />assessments are collected by Alameda County through the annual property tax bill. <br /> <br />The City currently administers five Landscape Maintenance Districts (LMDs). Landscape <br />Maintenance District 1984-1 (Ponderosa-Del Prado) and Landscape Maintenance District <br />1993-2 (Bonde Ranch) were formed prior to the 1996 adoption of Proposition 218, commonly <br />referred to as the “Right to Vote on Taxes Act.” While these LMDs have continued to operate, <br />their assessment structures were established decades ago and do not reflect current <br />maintenance and repair costs or the need to accumulate adequate reserves for capital repairs <br />and the replacement of aging infrastructure. <br /> <br />Proposition 218 amended the California Constitution by adding Article XIIID, which establishes <br />procedural and substantive requirements for property-related assessments. These <br />requirements include preparation of an Engineer’s Report demonstrating special benefits to <br />assessed parcels, notice and public hearing procedures, and approval of proposed <br />assessments through a weighted property owner ballot proceeding (the property owner’s vote <br />is weighted based on the amount they pay). As a result, adjustments to assessment structures <br />or rates must be evaluated through a formal assessment proceeding, rather than through <br />administrative rate changes. <br /> <br />On July 15, 2025, the City Council approved the assessments for the districts, including <br />budgeting for the Proposition 218 process, and approved an amendment to the agreement <br />with SCI Consulting Group to perform related services. <br /> <br />Initiating proceedings at this time allows the City to engage specialized assessment <br />consultants and prepare updated Engineer’s Reports consistent with Proposition 218 <br />requirements. The Engineer’s Reports will provide the technical analysis necessary to identify <br />district improvements, evaluate special benefits, and develop proposed assessment <br />methodologies for future City Council consideration and property owner review. <br /> <br />DISCUSSION <br />The Ponderosa-Del Prado and Bonde Ranch LMDs provide for the maintenance of landscape <br />improvements intended to benefit properties within each district. These improvements include <br />irrigation systems, landscaping, and related infrastructure. Over time, increasing water and <br />labor costs, along with aging infrastructure, have placed growing pressure on district finances. <br /> <br />The Ponderosa-Del Prado and Bonde Ranch LMDs were prioritized for a Proposition 218 <br />Page 127 of 242