CITY COUNCIL REGULAR MEETING AGENDA PACKET 5-5-26

Page 2 of 7 4. Adopt a resolution to order Proposition 218 property owner assessment ballot proceedings for Bonde Ranch Landscape Maintenance District 2026-2. BACKGROUND The Landscaping and Lighting Act of 1972, codified in Division 15, Part 2, Chapter 2, Sections 22500 et seq. of the California Streets and Highways Code, authorizes local agencies to impose annual assessments on real property that receives special benefit from the installation, maintenance, and servicing of landscaping and lighting improvements. Proposition 218, codified in Article XIIID of the California Constitution, establishes procedural and substantive requirements for property-related assessments, including preparation of an Engineer’s Report, public notice and hearing procedures, and approval through a weighted property owner ballot proceeding. The City currently administers five Landscape Maintenance Districts (LMDs). All five were formed before Proposition 218 was adopted in 1996 and are structurally underfunded. The City began actively assessing rate adjustment options in 2020 and has held discussions on the subject with all five districts. In 2025, the City raised the assessments for the four districts that had a higher assessment rate approved when the districts were formed. Assessments remained the same for Landscape Maintenance District 1993-1 (Windsor) as the approved assessment rates were already consistent with the current assessment rates. Landscape Maintenance Districts 1994-1 (Oak Tree Farm) and 1995-1 (Moller Ranch) include an inflation factor, and their assessments were updated last year. As a result, a Proposition 218 ballot process is not currently expected to be necessary for those districts. The City and HOA for Landscape Maintenance District 1993-1 (Windsor) are working towards a possible transfer of maintenance responsibilities. The Engineer’s Reports for the Windsor, Moller Ranch, and Oak Tree Farm LMDs, along with the Engineer’s Reports for the Ponderosa-Del Prado and Bonde Ranch LMDs, should the votes not pass, will be presented to the City Council on June 2, 2026. Landscape Maintenance Districts 1984-1 (Ponderosa-Del Prado) and 1993-2 (Bonde Ranch) were prioritized for the Proposition 218 vote because they face the most significant funding shortfalls. Neither district includes an annual inflationary adjustment factor, assessment revenues have not kept pace with rising maintenance and water costs, and neither district maintains adequate reserves for capital repair and replacement needs. The City conducted three rounds of neighborhood meetings for the Ponderosa-Del Prado and Bonde Ranch LMDs between November 2025 and April 2026. The first meeting, held online, informed residents of the districts’ financial conditions and gathered initial input. The second and third meetings were held in person. At the second meeting, staff presented assessment options (a high level of maintenance more consistent with the plans approved at the formation of the development, a mid-level recommended by the City to reflect a sustainable maintenance level based on the condition of the existing mature landscape, and a reduced maintenance level, reflecting the minimum level necessary to sustainably maintain the landscape safely) and notified property owners that an informal survey would be distributed to gauge support for the options. At the third and final meeting, staff shared the survey results and outlined the next steps. Page 43 of 248