CITY COUNCIL REGULA MEETING AGENDA PACKET _Revised_ 6-2-26

Page 2 of 11 Act of 1972, annual assessments are collected through the Alameda County Assessor’s Office and applied to each property owner’s tax bill. Staff recommends that the City Council adopt resolutions preliminarily approving the Engineer’s Reports for LMDs 1984-1, 1993-1, 1993-2, 1994-1, and 1995-1, and set July 21, 2026, as the date of the public hearing. RECOMMENDATION Adopt resolutions: 1. Preliminarily approving the Engineer’s Reports for Landscape Maintenance Districts 1984-1 (Ponderosa-Del Prado), 1993-1 (Windsor), 1993-2 (Bonde Ranch), 1994-1 (Oak Tree Farm), and 1995-1 (Moller Ranch); 2. Declaring the City’s intention to assess properties for the cost of operating and maintaining the districts; and 3. Setting July 21, 2026, at 7:00 p.m. as the date and time for the public hearing and authorizing the City Clerk to publish a notice of annual hearing in accordance with California Streets and Highways Code section 22626(a). 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 levy 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 XIII D 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. The City currently administers five LMDs. All five were formed before the adoption of Proposition 218 in 1996 and are structurally underfunded. Beginning in 2020, the City evaluated options for adjusting assessments and discussed those options with owners within each district. In 2025, the City restored assessments for four districts to the rates originally approved at district formation. Assessments for LMD 1993-1 (Windsor) remained unchanged as the approved rate was already consistent with the current assessment. LMDs 1994-1 (Oak Tree Farm) and 1995-1 (Moller Ranch) include an inflation factor in their formation documents, and their assessments were updated last year. As a result, a Proposition 218 ballot proceeding is not currently anticipated for those districts at this time. However, the recent court decision in Thacker vs. the City of Fairfield, will require that the City conducts a Proposition 218 process for both districts unless further litigation is pursued and the City is able to increase assessments based on the approved amount and inflation. The City and the LMD 1993-1 (Windsor) homeowners association (HOA) are continuing discussions regarding a possible transfer of additional maintenance responsibilities to reduce district costs. LMDs 1984-1 (Ponderosa-Del Prado) and 1993-2 (Bonde Ranch) were prioritized for a Proposition 218 process, and a parallel effort is underway to replace those districts with proposed Districts 2026-1 (Ponderosa-Del Prado) and 2026-2 (Bonde Ranch). The Engineer’s Reports for existing LMDs 1984-1 and 1993-2 included with this agenda item would be implemented only if the Proposition 218 ballot proceedings for the replacement districts are not Page 67 of 617