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

Page 9 of 11 Due to multiple irrigation system failures, a portion of the irrigation system has been shut off, affecting the health of established landscaping. In prior years, staff met with the Moller Ranch HOA to discuss the need for increased assessments. Although initial support was limited, the HOA expressed interest in understanding the long-term cost-benefit of a rate increase. Discussions resumed in summer 2024 regarding a possible Proposition 218 process to support the district's long-term capital and maintenance needs. Maintenance, water, and electricity costs are projected to total approximately $117,000 this fiscal year, driven by major irrigation repairs, turf conversion, and tree pruning, resulting in an estimated reserve draw of approximately $54,000. Over the next decade, the total cost of necessary improvements is estimated at approximately $1,000,000, including irrigation and landscape restoration, fence replacement, and other capital needs. Increases to Assessments Without the proposed formation of replacement districts for Ponderosa-Del Prado and Bonde Ranch as approved by a vote of the district owners this year, without an increase to assessments based on the approved inflation factor for Moller Ranch and Oak Tree Farm, and without an agreement to take over the maintenance for Windsor, then all 5 districts will require an assessment increase through a future Proposition 218-compliant process. The information in this report regarding future assessment increases is provided for informational purposes only and to support the public hearing scheduled for July 21, 2026. No additional City Council action regarding assessment increases is required at this time. Any future recommended action will be brought to the City Council under a separate item. PUBLIC COMMENT As part of the annual noticing process for preliminary approval of the Engineer’s Report, staff provides general information to residents within the LMDs. The annual notice includes the name and telephone number of a staff contact for questions. If staff receives questions prior to the public hearing on July 21, 2026, staff will provide the City Council with those questions and responses at or before the hearing. In addition, staff conducted extensive outreach for the Ponderosa-Del Prado and Bonde Ranch Landscape Maintenance Districts, as described in the May 5, 2026, agenda report regarding formation of replacement districts. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) This action does not result in a direct physical change in the environment. In addition, maintenance work within each LMD is categorically exempt from CEQA under Guidelines Section 15302, “Replacement or Reconstruction.” Further, under CEQA Guidelines Section 15378(b)(4), this action is not a “project” as it is a government funding mechanism that does not involve a commitment to a specific project that may result in a potentially significant physical impact on the environment. Page 74 of 617