CITY COUNCIL REGULAR MEETING AGENDA PACKET 5-5-26

City of Pleasanton Ponderosa‐Del Prado Landscape Maintenance District 2026‐1 Engineer’s Report Page 4 Introduction Overview Landscape Maintenance District No. 1984‐1, Ponderosa‐Del Prado ("1984‐1 Ponderosa LMD") was established by the City of Pleasanton in 1984 as a condition of approval for the Ponderosa residential development. The 1984‐1 Ponderosa LMD was formed pursuant to the Landscaping and Lighting Act of 1972 (California Streets and Highways Code, Sections 22500 et seq., the "Act") to fund the ongoing maintenance of landscaping, trees, shrubs, groundcover, and irrigation systems within the Ponderosa subdivision. The Ponderosa single‐family residential project was approved in two phases, October 1983 and January 1985. The original assessment was established in 1984, prior to the passage of Proposition 218. The first assessment on record, approved by Resolution 88‐375, was $60.08 per parcel per year. Beginning in Fiscal Year 2000‐01, the assessment was reduced to $16.62 per parcel, where it remained through Fiscal Year 2024‐25. With no inflation escalator, assessment revenues have not kept pace with the rising costs of maintenance, water, utilities, and capital replacement. The resulting funding shortfall has produced a measurable decline in the condition of the landscape and infrastructure within the 1984‐ 1 Ponderosa LMD. In Fiscal Year 2025‐26, the City restored the assessment to $60.08 per parcel per year, the amount established by Resolution 88‐375. However, this restoration is insufficient to fund the full scope of maintenance and capital improvements needed within the District. Water costs increased thirty percent in calendar year 2024, an additional twelve percent in 2025, and rates were restructured in 2026, moving away from the tiered system based on quantity, which will more heavily impact low water‐use properties, such as the 1984‐ 1 Ponderosa LMD. Water rates are projected to continue to increase in future years to pay for necessary infrastructure and treatment costs. The reserve fund has been partially drawn to fund the costs of the Proposition 218 ballot proceeding. The City Council has directed that a new assessment be proposed and voted on by property owners within the District in accordance with Proposition 218 (Article XIIID of the California Constitution). The intent is to replace the existing District No. 1984‐1 with a new Ponderosa‐Del Prado Landscape Maintenance District 2026‐1 ("Assessment District" or "District") that includes a cost‐of‐living adjustment provision to provide adequate and sustainable funding for maintenance and services going forward. If approved by property owner ballot, the existing 1984‐1 Ponderosa LMD will be replaced by the Assessment District. Page 58 of 248