CITY COUNCIL REGULAR MEETING AGENDA PACKET 7-21-26

Page 2 of 6 confirming the diagram and assessment, and ordering the levy of assessment for the Ponderosa-Del Prado Landscape Maintenance District 2026-1 for FY2026/27; and 4. If no majority protest exists, adopt a resolution approving the Engineer’s Report, confirming the diagram and assessment, and ordering the levy of assessment for the Bonde Ranch Landscape Maintenance District 2026-2 for FY2026/27. 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 landscaping and lighting improvements. Proposition 218, codified in Article XIIID 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, and approval through a weighted property owner ballot proceeding. The City administers five Landscape Maintenance Districts, all of which were formed before Proposition 218 was adopted in 1996. LMD 1984-1 (Ponderosa-Del Prado) and LMD 1993-2 (Bonde Ranch) were prioritized for Proposition 218 ballot proceedings because they face the most significant funding shortfalls. Because neither district includes an annual inflationary adjustment factor, assessment revenues have not kept pace with rising maintenance and water costs, and neither district maintains adequate reserves for capital repair and replacement. Between November 2025 and April 2026, the City conducted three rounds of neighborhood meetings for each district. The maintenance options ranged from a Higher Level consistent with that approved with development, to a Moderate Level recommended by the City based on current conditions, to a Reduced Level reflecting the minimum level needed to sustainably maintain the district. On March 17, 2026, the City Council initiated proceedings to form the two new districts and designated SCI Consulting Group as Engineer of Work. On May 5, 2026, the City Council preliminarily approved the Engineer’s Reports and ordered the ballot proceedings. Official ballots and notices of the public hearing were mailed to all record owners on May 15, 2026. On June 2, 2026, the City Council also preliminarily approved the Engineer’s Reports for all five districts, including concurrent Engineer’s Reports for Ponderosa-Del Prado and Bonde Ranch in the event the ballot proceedings are unsuccessful. DISCUSSION Engineer’s Reports SCI Consulting Group prepared an Engineer’s Report for each proposed district in accordance with the Landscaping and Lighting Act of 1972 and Article XIIID of the California Constitution. Each report describes the improvements to be maintained, the estimated annual costs and budget, the district boundaries and assessment diagram, the method of assessment apportionment based on special benefit, and the assessment roll. The Engineer’s Reports are on file with the City Clerk and incorporated into the respective resolutions. Ponderosa-Del Prado Landscape Maintenance District 2026-1 Page 282 of 923