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

Page 3 of 11 approved by district voters. On March 17, 2026, the City Council adopted Resolutions 2026-009 and 2026-0010, initiating proceedings to form two new districts to replace the existing Ponderosa-Del Prado and Bonde Ranch districts. On May 5, 2026, the City Council adopted resolutions preliminarily approving the Engineer’s Reports for the two proposed new districts and ordering Proposition 218 assessment ballot proceedings. For each LMD, City staff follows the statutorily required annual administration process. Staff conducts field inspections, oversees the City’s maintenance contractor, addresses property owner concerns, and processes contractor payments. Annual administration generally includes the following steps: 1. Solicit competitive bids from contractors for required maintenance work; 2. Review bids and recommend an award to the lowest responsive and responsible bidder; 3. Review maintenance costs, estimate annual costs such as water and electricity, and prepare a budget to be included in the annual Engineer's Report and City budget; 4. Prepare the Engineer’s Report for each district, including the proposed annual assessment amounts; 5. Present the Engineer's Report to the City Council at a public hearing; and 6. Following Council action, adopt the annual assessments and coordinate with the City’s Finance Department and City Clerk to authorize the collection of assessments through the Alameda County Assessor’s Office and receipt of the assessments as special revenue. DISCUSSION The City currently operates five LMDs that are assessed annually. The assessments include an additional 1.7 percent County administration fee. Assessments on City-owned parcels located within the Ponderosa-Del Prado, Bonde Ranch, Oak Tree Farm, and Moller Ranch districts do not include the 1.7 percent County administration fee, as the Finance Department transfers the money from the General Fund into the applicable district fund without involving the County. All district assessments will remain the same as last year when the assessments for each District were restored back to the level approved at formation. The City is working with the Windsor HOA to take over maintenance responsibilities to address the maintenance shortfall for the Windsor LMD, the Ponderosa-Del Prado and Bonde Ranch LMDs are undergoing a parallel Proposition 218 process to approve an updated assessment consistent with Proposition 218 at a sustainable maintenance level, and the Moller Ranch and Oak Tree Farm LMDs were approved at a level up to $1,000 per property with an inflation factor, but will remain the same as last year and will continue that way unless the recent court case is further litigated. The table below lists the assessments to be collected within each district this fiscal year, as well as the total expected special revenue and the total available reserves: Table 1. Summary of LMD Assessments Page 68 of 617