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Page 11 Legal Requirements Proposition 218 The City of Pleasanton's five Landscape and Lighting Maintenance Districts were formed prior to the passage of Proposition 218, "The Right to Vote on Taxes Act," which was approved by the voters of California on November 6, 1996, and is now Article XIIIC and XIIID of the California Constitution. (Proposition 218 provides for benefit assessments to be levied to fund the cost of providing services, improvements, as well as maintenance and operation expenses to a public improvement which benefits the assessed property.) Although these assessments are consistent with Proposition 218, the California judiciary has generally referred to pre-Proposition 218 assessments as "grandfathered assessments" and held them to a lower standard than post Proposition 218 assessments. The existing Assessment Districts will be re-assessed consistent with the procedures and requirements imposed by Proposition 218, which describe several important requirements, including property-owner balloting and approval for the imposition of new or increased assessments if greater than the formation level assessments. No vote is required this year because the proposed increase to the assessments is less than the maximum assessment amounts approved at formation of the LMD and no change to the assessment calculation is proposed. This Engineer's Report is consistent with the requirements of Article XIIIC and XIIID of the California Constitution because the Improvements to be funded are clearly defined, the Improvements are directly available to and directly benefit property in the Maintenance District, and the Improvements provide a direct advantage to property in the Maintenance District that would not be received in absence of the assessments. City of Pleasanton Lighting & Landscape Maintenance District No. 1994-1, SCIConsultingGroup Oak Tree Farm Engineer's Report