Agenda packet, first session — Atascadero City Council, June 9, 2026 (part 1 of 2)

City of Atascadero

CITY COUNCIL AGENDA
* Note that the Zoom livestream option is provided to the public as a courtesy. The City does not guarantee that viewing the meeting live will be available via Zoom. If Zoom livestream is not enabled, or streaming is disrupted, the meeting will continue with public attendance in-person only.

HOW TO SUBMIT PUBLIC COMMENT:

Public comment may be provided in-person.

Written public comments are accepted at [email protected]. Comments should identify the Agenda Item Number in the subject line of the email. Such comments will be forwarded to the City Council and made a part of the administrative record. To ensure distribution to the City Council before consideration of an item, please submit comments not later than 12:00 p.m. the day of the meeting. All correspondence will be distributed to the City Council, posted on the City’s website, and be made part of the official public record of the meeting. Please note, comments will not be read into the record. Any written comments received for items not appearing on the agenda will be treated as general Council correspondence. Please be aware that communications sent to the City Council are public records and are subject to disclosure pursuant to the California Public Records Act and Brown Act unless exempt from disclosure under applicable law. Communications will not be edited for redactions and will be printed/posted as submitted.

AMERICANS WITH DISABILITIES ACT ACCOMMODATIONS:

Any member of the public who needs accommodations should contact the City Clerk’s Office at [email protected] or by calling 805-470-3400 at least 48 hours prior to the meeting or time when services are needed. The City will use their best efforts to provide reasonable accommodations to afford as much accessibility as possible while also maintaining public safety in accordance with the City procedure for resolving reasonable accommodation requests.

DISCLOSURE OF CAMPAIGN CONTRIBUTIONS:

California Government Code section 84308 (“Levine Act”) requires a party to or participant in a proceeding involving a license, permit, or other entitlement, including all contracts other than competitively bid, labor, or personal employment contracts, to disclose any contribution of more than $500 that the party or participant (or their agent) has made to a member of the City Council within the prior 12 months. The City Council Member(s) who receive such a contribution are disqualified and not able to participate in the proceedings and are also required to disclose that fact for the official record of the subject proceedings. Disclosures must include the amount of the campaign contribution and identify the recipient City Council Member and may be made either in writing to the City Clerk before the agenda item or by verbal disclosure during consideration. The Levine Act also prohibits, during the proceeding and for 12 months following a final decision, a party to or participant in (or their agent) a proceeding involving a license, permit, or other entitlement, including all contracts other than competitively bid, labor, or personal employment contracts, from making a contribution of more than $500 to any member of the City Council or anyone running for City Council.

City Council agendas and minutes may be viewed on the City's website:
www.atascadero.org/agendas
Copies of the staff reports or other documentation relating to each item of business referred to on the Agenda are on file in the office of the City Clerk and are available for public inspection on our website, www.atascadero.org.

Contracts, Resolutions and Ordinances will be allocated a number once they are approved by the City Council. The Minutes of this meeting will reflect these numbers. All documents submitted by the public during Council meetings that are made a part of the record or referred to in their statement will be noted in the Minutes and available for review by contacting the City Clerk's office. All documents will be available for public inspection by appointment during City Hall business hours.

MEETING INFORMATION:

The City Council meeting will be held in the City Council Chambers and in-person attendance will be available at that location.

HOW TO OBSERVE THE MEETING REMOTELY:

To observe remotely, residents can livestream the meeting on Zoom and listen live on KPRL Radio 1230AM and

99.3FM. The video recording of the meeting will be available through the City’s website and on the City’s YouTube Channel. To observe remotely using the Zoom platform please visit:
https://us02web.zoom.us/webinar/register/WN_ZwJ7a031S3KXauEym9ehaA

CITY OF ATASCADERO

CITY COUNCIL
AGENDA

Tuesday, June 9, 2026, 6:00 p.m.

City Hall Council Chambers, Fourth Floor
6500 Palma Avenue, Atascadero, California
Pages
A. REGULAR SESSION - CALL TO ORDER
B. PLEDGE OF ALLEGIANCE
Mayor Pro Tem Dariz
C. ROLL CALL
Mayor Bourbeau
Mayor Pro Tem Dariz
Council Member Funk
Council Member Newsom
Council Member Peek
D. PRESENTATIONS

1. Awards Presentation for Downtown El Camino Real Project E. CONSENT CALENDAR
(All items on the consent calendar are considered routine and non-controversial by City staff and will be acted upon by a single action of the City Council unless otherwise requested by an individual Council Member for separate consideration. Public comment on Consent Calendar items will be invited prior to action on the Calendar.)

1. City Council Draft Minutes - May 26, 2026, Regular Meeting 6 Recommendation: Council approve the May 26, 2026, City Council regular meeting minutes. [City Clerk]

2. Central Coast Zoo Support Spaces Renovation Project 10 Fiscal Impact: This project will not impact the City’s budget as all expenses will be reimbursed by the Central Coast Zoo Foundation. The funds for this project have been identified and set aside by the Foundation.

Recommendation: Council award a construction contract for $131,010 to BC Construction and Electric for the Zoo Support Spaces Renovation Project (Project No. C2026B01). [Community Services and Promotions]

3. General Municipal Election – November 3, 2026 14
Fiscal Impact: The cost to the City is determined by the number of registered voters on Election Day, and the number of Candidate Statements included in the Voter Pamphlet. The County’s estimate for the 2026 election of officials in Atascadero is $77,000 and the City currently has $75,030 in budgeted general funds for election costs.

Recommendation: Council

1. Adopt the following Draft Resolutions for the purpose of electing a Mayor, two members to the City Council, and a City Treasurer:

A. Draft Resolution A, calling and giving notice of the holding of a General Municipal Election to be held on Tuesday, November 3, 2026, for the election a Mayor, two Council Members, and a City Treasurer.

B. Draft Resolution B, requesting the Board of Supervisors of the County of San Luis Obispo to consolidate a General Municipal Election to be held on November 3, 2026

2. Authorize the Director of Administrative Services to appropriate $1,970 of General Fund reserves in fiscal year 2026-2027 to the City Clerk budget for the November 3, 2026, General Municipal Election. [City Clerk]
F. UPDATES FROM THE CITY MANAGER
(The City Manager will give an oral report on any current projects and events to the City Council.)
G. COMMUNITY FORUM
(This portion of the meeting is reserved for persons wanting to address the Council on any matter not on this agenda and over which the Council has jurisdiction. Speakers are limited to three minutes. Please state your name for the record before making your presentation. Comments made during Community Forum will not be a subject of discussion. A maximum of 30 minutes will be allowed for Community Forum, unless changed by the Council. Any members of the public who have questions or need information may contact the City Clerk’s Office, between the hours of 8:30 a.m. and 5:00 p.m. at (805) 470- 3400, or [email protected].)
H. PUBLIC HEARINGS

1. Adopting Sewer Service Charges to be Added to the 2026-2027 Property Tax Rolls
20 Fiscal Impact: The City will collect an estimated $6,960,340 in sewer service charges for Fiscal Year 2026-27 if Council adopts the Draft Resolution. Revenue from sewer service charges is paid to the City twice each year. An additional two dollars are added to each property on the tax roll to cover the County fee to administer the levy process.

Recommendation: Council:

1. Conduct a public hearing to receive verbal testimony regarding the proposed sewer service charges to be levied onto property tax rolls.

2. Adopt Draft Resolution approving sewer service charges to be added to the Fiscal Year 2026-2027 property tax rolls. [Public Works]

2. Apple Valley Assessment Districts 24
Fiscal Impact: Annual assessments for 2026/2027 will total $38,500 for road/drainage system maintenance and $63,000 for landscape and lighting maintenance. These amounts will be assessed to the owners of parcels in Apple Valley. Contributions of $10,820 for half the cost of the park will be made from the City’s General Fund.

Recommendation: Council:

1. Adopt Draft Resolution A, approving the final Engineer’s Report

Page 2 of 250 ends

regarding the Street and Storm Drain Maintenance District No. 01 (Apple Valley), and the levy and collection of annual assessments related thereto for fiscal year 2026/2027.

2. Adopt Draft Resolution B, ordering the levy and collection of assessments for fiscal year 2026/2027 for Street and Storm Drain Maintenance District No. 01 (Apple Valley).

3. Adopt Draft Resolution C, approving the final Engineer’s Report regarding the Landscaping and Lighting District No. 01 (Apple Valley), and the levy and collection of annual assessments related thereto in fiscal year 2026/2027.

4. Adopt Draft Resolution D, ordering the levy and collection of assessments for fiscal year 2026/2027 for Landscaping and Lighting District No. 01 (Apple Valley). [Administrative Services]

3. De Anza Estates Assessment Districts 78
Fiscal Impact: Annual assessments for 2026/2027 will total $30,562 for road/drainage system maintenance and $19,367 for landscape and lighting maintenance. These amounts will be assessed to the owners of parcels in De Anza Estates. The City General Fund will contribute $1,400 for the fiscal year 2026/2027 for half of the maintenance costs of the trails and open space.

Recommendation: Council:

1. Adopt Draft Resolution A, approving the final Engineer’s Report regarding the Street and Storm Drain Maintenance District No. 03 (De Anza Estates), and the levy and collection of annual assessments related thereto for fiscal year 2026/2027.

2. Adopt Draft Resolution B, ordering the levy and collection of assessments for fiscal year 2026/2027 for Street and Storm Drain Maintenance District No. 03 (De Anza Estates).

3. Adopt Draft Resolution C, approving the final Engineer’s Report regarding the Landscaping and Lighting District No. 03 (De Anza Estates), and the levy and collection of annual assessments related thereto in fiscal year 2026/2027.

4. Adopt Draft Resolution D, ordering the levy and collection of assessments for fiscal year 2026/2027 for Landscaping and Lighting District No. 03 (De Anza Estates). [Administrative Services]

4. Las Lomas (Woodridge) Assessment Districts 136
Fiscal Impact: Annual assessments for 2026/2027 will total $107,532 for road/drainage system maintenance and $80,417 for landscape and lighting maintenance. These amounts will be assessed to the owners of parcels in Las Lomas (Woodridge). The City General Fund will contribute $1,830 for the fiscal year 2026/2027 for 25% of the maintenance costs of the trails and open space.

Recommendation: Council:

1. Adopt Draft Resolution A, approving the final Engineer’s Report regarding the Street and Storm Drain Maintenance District No. 02 (Las Lomas [Woodridge]), and the levy and collection of annual assessments related thereto for Fiscal Year 2026/2027.

2. Adopt Draft Resolution B, ordering the levy and collection of assessments for Fiscal Year 2026/2027 for Street and Storm Drain Maintenance District No. 02 (Las Lomas [Woodridge]).

Page 3 of 250 ends

3. Adopt Draft Resolution C, approving the final Engineer’s Report regarding the Landscaping and Lighting District No. 02 (Las Lomas [Woodridge]), and the levy and collection of annual assessments related thereto in Fiscal Year 2026/2027.

4. Adopt Draft Resolution D, ordering the levy and collection of assessments for Fiscal Year 2026/2027 for Landscaping and Lighting District No. 02 (Las Lomas [Woodridge]).[ Administrative Services]

5. Downtown Parking and Business Improvement Area (DPBIA) Confirmation of Annual Assessment (FY26-27)
197
Fiscal Impact: Adopting the staff recommendation will result in the collection of approximately $13,800 and expenditure of $13,700 in budgeted DPBIA funds.

Recommendation: Council adopt Draft Resolution, confirming the annual assessment for the Downtown Parking and Business Improvement Area (DPBIA) for Fiscal Year 2026-2027. [City Manager]

6. Atascadero Tourism Business Improvement District (ATBID) Confirmation of Annual Assessment (FY 2026-2027)
204
Fiscal Impact: Annual assessments are expected to be approximately $534,030 and expenditures are budgeted at $546,340 for fiscal year 2026-2027.

Recommendation: Council provide direction to staff on specific land uses and development standards for commercial zoning districts. [Community Services and Promotions]
I. MANAGEMENT REPORTS

1. City Of Atascadero Emergency Operations Plan 210
Fiscal Impact: Adoption of the EOP does not create an immediate fiscal impact.

Recommendation: Council adopt Draft Resolution adopting the 2026 Emergency Operations Plan as the City’s official all-hazards emergency guidance document. [Fire]

2. 2045 Atascadero General Plan Fiscal Impact Analysis Overview 217 Fiscal Impact: The fiscal analysis is not a required element of the General Plan or Zoning Code but is simply an informational tool for the City to assist in decision making. Staff and the consultant team will continue to engage the public, Planning Commission and City Council on items related to Plan adoption, including updates to the Zoning Code proposed to implement the 2045 General Plan and scheduled for concurrent adoption.

Recommendation: City Council receive an overview of the Fiscal Impact Analysis prepared for the General Plan and Zoning Code Update project. [Community Development]
J. COUNCIL ANNOUNCEMENTS AND COMMITTEE REPORTS
(On their own initiative, Council Members may make a brief announcement or a brief report on their own activities. The following represent standing committees.

Informative status reports will be given, as felt necessary):

Page 4 of 250 ends

Mayor Bourbeau

1. City Selection Committee

2. County Mayor’s Round Table

3. Integrated Waste Management Authority (IWMA)

4. Central Coast Community Energy (3CE)
Mayor Pro Tem Dariz

1. Air Pollution Control District

2. California Joint Powers Insurance Authority (CJPIA) Board

3. Community Action Partnership of San Luis Obispo (CAPSLO)

4. Visit SLO CAL Advisory Committee
Council Member Funk

1. Atascadero Basin Ground Water Sustainability Agency (GSA)

2. Design Review Committee

3. Homeless Services Oversight Council

4. REACH SLO Advisory Commission
Council Member Newsom

1. City of Atascadero Finance Committee

2. City / Schools Committee

3. League of California Cities – Council Liaison

4. SLO Council of Governments (SLOCOG)

5. SLO Regional Transit Authority (RTA)
Council Member Peek

1. City of Atascadero Finance Committee

2. City/Schools Committee

3. Design Review Committee

4. SLO County Water Resources Advisory Committee (WRAC) K. INDIVIDUAL DETERMINATION AND / OR ACTION:
(Council Members may ask a question for clarification, make a referral to staff or take action to have staff place a matter of business on a future agenda. The Council may take action on items listed on the Agenda.)

1. City Council

2. City Clerk

3. City Treasurer

4. City Attorney

5. City Manager
L. ADJOURNMENT

Page 5 of 250 ends

06/09/2026 | Item E1
Atascadero City Council
May 26, 2026

Page 1 of 4 ends

CITY OF ATASCADERO

CITY COUNCIL MEETING

DRAFT MINUTES
May 26, 2026, 4:30 p.m.

May 26, 2026, 6:00 p.m.

City Hall Council Chambers, Fourth Floor
6500 Palma Avenue, Atascadero, California
_____________________________________________________________________ A. CLOSED SESSION (4:30 p.m.)

1. ROLL CALL

Present: Mayor Bourbeau, Mayor Pro Tem Dariz, Council Member Funk, Council Member Peek

Absent: Council Member Newsom
Staff

Present:

City Manager James R. Lewis, Assistant City Manager/City Clerk Lara Henderson, City Attorney Dave Fleishman,
Community Development Director Phil Dunsmore, Deputy City Manager - IT Luke Knight

2. CLOSED SESSION - PUBLIC COMMENT
Mayor Bourbeau opened the Public Comment period.

The following persons spoke on this item: None
Mayor Bourbeau closed the Public Comment period.

3. COUNCIL LEAVES CHAMBERS TO BEGIN CLOSED SESSION
(Deputy City Manager IT Knight did not attend Closed Session)

4. CLOSED SESSION - CALL TO ORDER
a. Conference with Legal Counsel - Anticipated Litigation Government Code §54956.9(d)(4): 1 potential case

Page 6 of 250 ends

06/09/2026 | Item E1
Atascadero City Council
May 26, 2026

Page 2 of 4 ends

5. CLOSED SESSION - ADJOURNMENT
Mayor Bourbeau adjourned the Closed Session at 5:33 p.m.

6. CLOSED SESSION - REPORT
City Attorney Fleishman reported that there was no reportable action from Closed Session.

B. REGULAR SESSION - CALL TO ORDER
Mayor Bourbeau reconvened the meeting at 6:00 p.m. with Council Members Funk, Peek, Mayor Pro Tem Dariz and Mayor Bourbeau present.

C. PLEDGE OF ALLEGIANCE
Mayor Bourbeau led the Pledge of Allegiance.

Mayor Bourbeau noted that roll call was conducted prior to Closed Session

Present: Mayor Bourbeau, Mayor Pro Tem Dariz, Council Member Funk, Council Member Peek

Absent: Council Member Newsom
Staff

Present:

Assistant City Manager/City Clerk Lara Henderson, City
Attorney Dave Fleishman, Deputy Director of Administrative Services Cindy Chavez, Deputy Director Public Works Ryan Hayes, Community Development Director Phil Dunsmore, Fire Chief Casey Bryson, Police Chief Dan Suttles, Deputy City Clerk Alyssa Slater, Planning Manager Kelly Gleason, Support Services Technician II Abby Getahun
D. CONSENT CALENDAR

1. City Council Draft Minutes - May 12, 2026, Regular Meeting Recommendation: Council approve the May 12, 2026, City Council regular meeting minutes. [City Clerk]

2. April 2026 Accounts Payable & Payroll
Fiscal Impact: Total expenditures for all funds is $3,960,590.38 Recommendation: Council approve certified City accounts payable, payroll and payroll vendor checks for April 2026. [Administrative Services]

3. Adopting a List of Projects for Fiscal Year 2026-2027 Funded by SB 1: The Road Repair and Accountability Act of 2017
Fiscal Impact: Approval of the Draft Resolution adopting the list of projects for SB 1 funding will allow the City to receive an estimated $864,200 in Fiscal Year 2026-2027 SB 1 funding.

Recommendation: Council adopt Draft Resolution, adopting a list of

Page 7 of 250 ends

06/09/2026 | Item E1
Atascadero City Council
May 26, 2026

Page 3 of 4 ends

projects to be funded with Road Maintenance and Rehabilitation Account revenues from SB 1 (The Road Repair and Accountability Act of 2017) for Fiscal Year 2026-2027. [Public Works]
Mayor Bourbeau opened the Public Comment period.

The following persons spoke on this item:

Mayor Bourbeau closed the Public Comment period.

MOTION BY: Funk
SECOND BY: Dariz

1. Approve Consent Calendar (#D3: Resolution No. 2026-032) AYES (4): Funk, Peek, Dariz and Bourbeau
ABSENT (1): Newsom
Passed 4-0
E. UPDATES FROM THE CITY MANAGER
Assistant City Manager Henderson gave an update on projects and events within the City.

F. COMMUNITY FORUM
The following persons spoke: Richard Moen, Geoff Auslen G. MANAGEMENT REPORTS

1. 2045 Atascadero General Plan Environmental Impact Report (EIR) Fiscal Impact: The Draft Plan will be analyzed for fiscal impact based on the preferred land use alternative and guiding policies. A draft and final analysis will be presented during the public review period and prior to Plan adoption.

Recommendation: City Council receive an overview and receive public comment on the draft Environmental Impact Report (EIR) prepared for the General Plan and Zoning Code Update project. [Community Development] Community Development Director Dunsmore and Planning Manager Gleason gave the presentation and answered questions from the City Council.

Mayor Bourbeau opened the Public Comment period.

The following persons spoke on this item: Geoff Auslen
Mayor Bourbeau closed the Public Comment period.

Page 8 of 250 ends

06/09/2026 | Item E1
Atascadero City Council
May 26, 2026

Page 4 of 4 ends

Council received an overview and public comment on the draft 2045 Atascadero General Plan Environmental Impact Report (EIR).

H. COUNCIL ANNOUNCEMENTS AND COMMITTEE REPORTS
The following Council Members gave brief update reports on their committees since their last Council meeting:

Mayor Bourbeau

1. County Mayor’s Round Table

2. Integrated Waste Management Authority (IWMA)
Mayor Pro Tem Dariz

1. Air Pollution Control District
Council Member Funk

1. Homeless Services Oversight Council

2. REACH SLO Advisory Commission
I. INDIVIDUAL DETERMINATION AND / OR ACTION:

1. City Council – Council Member Funk noted frustration with the paleontological requirements in the EIR and that she would like to bring those frustrations up to elected state officials and the City's legislative representatives. There was Council consensus to allow Council Member Funk to express the City's frustration over these requirements and the difficulty it presents for development. Mayor Bourbeau further requested that any Council Member or staff who is meeting with state representatives discuss this issue and the rest of the Council agreed.

J. ADJOURNMENT
Mayor Bourbeau adjourned the meeting at 7:20 p.m.

MINUTES PREPARED BY:
______________________________________
Alyssa Slater
Deputy City Clerk
APPROVED:

Page 9 of 250 ends

CITY OF ATASCADERO
CITY COUNCIL STAFF REPORT Item E2
TO: JAMES R. LEWIS, CITY MANAGER
FROM: TERRIE BANISH, DIRECTOR OF COMMUNITY SERVICES AND PROMOTIONS PREPARED BY: CYNTHIA STRINGFIELD, ZOO DIRECTOR
SUBJECT: Central Coast Zoo Support Spaces Renovation Project RECOMMENDATIONS:

Council award a construction contract for $131,010 to BC Construction and Electric for the Zoo Support Spaces Renovation Project (Project No. C2026B01).

DISCUSSION:

BACKGROUND
The City of Atascadero’s Central Coast Zoo animal kitchen (commissary) has a built-in, aged nonfunctional cooler (refrigerator) that needs to be removed to meet USDA APHIS (United States Department of Agriculture Animal and Plant Health Inspection Service) Animal Welfare Act licensing requirements. A new refrigerator and freezer were installed last year outside the building. The current diet preparation space needs to be updated to meet AZA (Association of Zoos and Aquariums) accreditation standards. The Central Coast Zoo Foundation is funding this project and will reimburse the City for the entire amount.

DESIGN ANALYSIS
In 2025, Central Coast Zoo professionals worked with Ten Over Studio, Inc., to finalize the design to remodel the commissary space. Building plans were reviewed by the City’s Building Department, and a Building Permit has been issued. The design was also funded by the Central Coast Zoo Foundation.

BID ANALYSIS
The project was publicly bid starting April 17, 2026, for a minimum of 15 days in accordance with State Contracting Laws and the City’s Purchasing Policies. A public bid opening occurred on May 21, 2026, and 1 bid was received for $131,009 by BC Construction and Electric. The bid was reviewed for accuracy and compliance with project bidding requirements, and the Zoo Director has determined that BC Construction and Electric is the lowest (and only) responsive bidder at $131,009. The City’s Public Works Department has reviewed BC Construction’s bid, and considers it a fair and reasonable price for this Department: Community
Services &
Promotions
Date: 6/09/26
Placement: Consent

Page 10 of 250 ends

6/9/26 | Item E2 | Staff Report
project scope. City staff-including the Zoo Director and Zoo Supervisor- will oversee construction management for this project, and the Building Department will conduct inspections as required.

Additional non-construction expenses include $15,000 in equipment purchases, which will be funded and paid for by the Central Coast Zoo Foundation. A standard contingency of 20% is customarily used for capital projects as a safeguard for quantity over-runs and if unknown conditions arise which require a change in plans. The risk for unknowns is low in this project as it is an interior renovation only, however staff agree that a healthy contingency is prudent.

ESTIMATED EXPENDITURES
Construction Contract: Base Bid $131,010
Contingency – 20% 26,200
Total Estimated Expenditures: $ 157,210

FUNDING SOURCES
Reimbursement by the Central Coast Zoo
Foundation
157,210
Total Funding Sources: $157,210

CONSTRUCTION ANALYSIS
Construction is anticipated to begin at the end of June. The contractor will have 30 working days (approximately one and a half months) to complete the project work after notice to proceed is issued.

There are no expected impacts to the visiting public as a result of this work, and Zoo staff will utilize other spaces for food preparation during construction.

ENVIRONMENTAL REVIEW
The proposed project is Categorically Exempt (Class 1) from the provisions of the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., “CEQA”) and CEQA Guidelines (Title 14 California Code of Regulations §§ 15000, et seq.) pursuant to CEQA Guidelines Section 15301, because it is limited to repair and maintenance of existing facilities. A finding of exemption is on file in the project records.

ALTERNATIVES TO THE STAFF RECOMMENDATION:

Council may direct staff to rebid the project but staff does not recommend this option. Staff finds the bid received to be reasonable and fair. Additionally, staff believes that rebidding the project would very likely result in higher bid amounts.

Page 11 of 250 ends

6/9/26 | Item E2 | Staff Report
FISCAL IMPACT:

This project will not impact the City’s budget as all expenses will be reimbursed by the Central Coast Zoo Foundation. The funds for this project have been identified and set aside by the Foundation.

REVIEWED BY OTHERS:

This item has been reviewed by the Deputy Public Works Director and the Deputy Administrative Services Director.

REVIEWED AND APPROVED FOR COUNCIL AGENDA:

James R. Lewis, City Manager
ATTACHMENTS:

1. Bid Summary

Page 12 of 250 ends

City of Atascadero
CITY CLERK’S OFFICE

BID SUMMARY
TO: Public Works
FROM: Alyssa Slater, Deputy City Clerk
BID NUMBER: 2026-001
OPENED: May 21, 2026
PROJECT: Zoo Support Spaces Renovation Project # C2026B01 BIDS OPENED: 1 Bids was received and opened today, as follows:

Name of Bidder Base Bid Total Add Alternate
BC Construction and Electric $131,009.00
6/9/26 | Item E2 | Attachment 1

Page 13 of 250 ends

CITY OF ATASCADERO
CITY COUNCIL STAFF REPORT Item E3
Department: City Clerk
Date: 6/09/26
Placement: Management
Report
TO: JAMES R. LEWIS, CITY MANAGER
FROM: LARA K. HENDERSON, CITY CLERK
PREPARED BY: ALYSSA SLATER, DEPUTY CITY CLERK
SUBJECT: General Municipal Election – November 3, 2026
RECOMMENDATIONS:

1. Council adopt the following Draft Resolutions for the purpose of electing a Mayor, two members to the City Council, and a City Treasurer:

B. Draft Resolution B, requesting the Board of Supervisors of the County of San Luis Obispo to consolidate a General Municipal Election to be held on November 3, 2026

REPORT IN BRIEF:

The City Council must approve resolutions to initiate the election process and to combine the City’s election with the County.

DISCUSSION:

The General Municipal Election will be held on Tuesday, November 3, 2026. The terms of Mayor Charles Bourbeau, two Council Members, Susan Funk and Heather Newsom, and City Treasurer Jeri Rangel will expire in November 2026. The Mayor has a two-year term, the Council Members have four-year terms, and the City Treasurer has a four-year term. The City Council must adopt a resolution to initiate the election process (Draft Resolution A). In order to combine the City’s election with the County, the Council must also adopt a resolution requesting consolidation with the County (Draft Resolution B).).

The qualifications required to run for Mayor are the same as for City Council Members and City Treasurer; you must be registered to vote in the City of Atascadero and live within the Atascadero

Page 14 of 250 ends

6/09/26 | Item E3 | Staff Report
City limits. In addition, all Council Members, whether or not they are up for re-election, may also run for the office of elected Mayor. If a Council Member is mid-term when they run for Mayor, and is successful, the Council Member’s position will become vacant. The City Council must then appoint a replacement, or call for a Special Election, within 60 days of the position becoming vacant. The vacancy would occur in December 2026 once the Mayor is sworn into office.

FISCAL IMPACT:

The cost to the City is determined by the number of registered voters on Election Day, and the number of Candidate Statements included in the Voter Pamphlet. The County’s estimate for the 2026 election of officials in Atascadero is $77,000 and the City currently has $75,030 in budgeted general funds for election costs.

REVIEWED BY OTHERS:

This item has been reviewed by the Administrative Services Director and the City Attorney.

REVIEWED AND APPROVED FOR COUNCIL AGENDA
James R. Lewis, City Manager
ATTACHMENT(S):

1. Draft Ordinance A

2. Draft Ordinance B

Page 15 of 250 ends

6/9/26 | Item E3 | Attachment 1

DRAFT RESOLUTION A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ATASCADERO, CALIFORNIA, CALLING FOR THE HOLDING OF A
GENERAL MUNICIPAL ELECTION ON TUESDAY, NOVEMBER 3, 2026,

FOR THE ELECTION OF CERTAIN OFFICERS AS REQUIRED BY THE

PROVISIONS OF THE LAWS OF THE STATE OF CALIFORNIA

RELATING TO GENERAL LAW CITIES
WHEREAS, under the provisions of the laws relating to general law cities in the State of California, a General Municipal Election shall be held on November 3, 2026, for the election of Municipal Officers.

NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Atascadero:

SECTION 1. That pursuant to the requirements of the laws of the State of California relating to General Law Cities, there is called and ordered to be held in the City of Atascadero, California on Tuesday, November 3, 2026, a General Municipal Election for the purpose of electing a Mayor for the full term of two years; two Members of the City Council for the full term of four years; and a City Treasurer for the full term of four years.

SECTION 2. That the ballots to be used at the election shall be in form and content as required by law.

SECTION 3. That the City Clerk is authorized, instructed and directed to coordinate with the County of San Luis Obispo Clerk-Recorder to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election.

SECTION 4. That the polls for the election shall be open at seven o’clock a.m. of the day of the election and shall remain open continuously from that time until eight o’clock p.m. of the same day when the polls shall be closed, pursuant to Election Code § 10242, except as provided in § 14401 of the Elections Code of the State of California.

SECTION 5. That in all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections.

SECTION 6. That notice of the time and place of holding the election is given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law.

SECTION 7. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

Page 16 of 250 ends

6/9/26 | Item E3 | Attachment 1
SECTION 8. The City Council authorizes the City Clerk to administer said election and all reasonable and actual election expenses shall be paid by the City upon presentation of a properly submitted bill.

PASSED AND ADOPTED at a regular meeting of the City Council held on the 9 th day of
June, 2026.

On motion by Council Member and seconded by Council Member , the foregoing Resolution is hereby adopted in its entirety on the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

CITY OF ATASCADERO
Charles Bourbeau, Mayor
ATTEST:

Lara K. Henderson, City Clerk

Page 17 of 250 ends

6/9/26 | Item E3 | Attachment 2

DRAFT RESOLUTION B

RESOLUTION OF THE CITYCOUNCIL OF THE

CITY OF ATASCADERO, CALIFORNIA, REQUESTING THE

BOARD OF SUPERVISORS OF THE COUNTYOF SAN LUIS OBISPO

TO CONSOLIDATE A GENERAL MUNICIPAL ELECTION
TO BE HELD ON TUESDAY, NOVEMBER 3, 2026, WITH THE

STATEWIDE GENERALELECTION TO BE HELD ON THE DATE
PURSUANT TO § 10403 OF THE ELECTIONS CODE
WHEREAS, the City Council of the City of Atascadero called a General Municipal Election to be held on November 3, 2026, for the purpose of the election of a Mayor, two Members of the City Council and a City Treasurer; and
WHEREAS, it is desirable that the General Municipal Election be consolidated with the Statewide General Election to be held on the same date and that within the City the precincts, polling places and election officers of the two elections be the same, and that the County Election Department of the County of San Luis Obispo canvass the returns of the General Municipal Election and that the election be held in all respects as if there were only one election.

NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Atascadero:

SECTION 1. That pursuant to the requirements of § 10403 of the Elections Code, the Board of Supervisors of the County of San Luis Obispo is hereby requested to consent and agree to the consolidation of a General Municipal Election with the Statewide General Election on Tuesday, November 3, 2026, for the purpose of the election of a Mayor, two Members of the City Council, and a City Treasurer.

SECTION 2. That the County Election Department is authorized to canvass the returns of the General Municipal Election. The election shall be held in all respects as if there were only one election, and only one form of ballot shall be used. The election will be held and conducted in accordance with the provisions of law regulating the statewide election.

SECTION 3. That the Board of Supervisors is requested to issue instructions to the County Election Department to take any and all steps necessary for the holding of the consolidated election.

SECTION 4. That the City of Atascadero recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any related costs.

SECTION 5. That the City Clerk is hereby directed to file a certified copy of this Resolution with the Board of Supervisors and the County Election Department of the County of San Luis Obispo.

Page 18 of 250 ends

6/9/26 | Item E3 | Attachment 2
SECTION 6. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

PASSED AND ADOPTED at a regular meeting of the City Council held on the 9 th
day of June, 2026.

On motion by Council Member and seconded by Council Member , the foregoing Resolution is hereby adopted in its entirety on the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

CITY OF ATASCADERO
Charles Bourbeau, Mayor
ATTEST:

Lara K.Henderson, City Clerk

Page 19 of 250 ends

CITY OF ATASCADERO
CITY COUNCIL STAFF REPORT Item H1
Department: Public Works
Date: 6/9/26
Placement: Public Hearing
TO: JAMES R. LEWIS, CITY MANAGER
FROM: NICK DE BAR, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER PREPARED BY: RYAN BETZ, PUBLIC WORKS ANALYST
SUBJECT: Adopting Sewer Service Charges to be Added to the 2026-2027 Property Tax Rolls
RECOMMENDATIONS:

Council:

1. Conduct a public hearing to receive verbal testimony regarding the proposed sewer service charges to be levied onto property tax rolls.

2. Adopt Draft Resolution approving sewer service charges to be added to the Fiscal Year 2026-2027 property tax rolls.

DISCUSSION:

The Atascadero Municipal Code provides for the collection of sewer service charges on the general County property tax bills. Charges have been collected in this manner since the City took ownership of the Atascadero County Sanitation District in 1984. Sewer service charges are based upon Equivalent Dwelling Units (EDUs), where one EDU is the basis for a single-family residence (SFR) service charge, based upon an estimated peak daily flow of 240 gallons of wastewater and wastewater strength. Other connection users are assigned a multiple or fraction of an EDU based upon expected average daily flow and strength of wastewater compared to that of SFR. This fixed rate methodology is used since the City is not the water supplier and does not have access to individual customer water consumption data. The City currently has approximately 8,300 EDUs in the system. Revenue from the service charges directly funds sewer (wastewater) services including the collection and treatment of wastewater, rising energy costs, impacts of regulation and legislation; and past and continued critical upgrades and/or replacement of wastewater facilities and infrastructure.

Customers connected to the City’s sanitary sewer system are billed a monthly fixed charge for the service the City provides to collect and treat the wastewater. Sewer service charges are collected by placing a levy each year on the property taxes of individual customers through San Luis Obispo County. The City provides data to the County, including the Assessor’s Parcel Number (APN), and

Page 20 of 250 ends

6/9/26 | Item H1| Staff Report
the associated sewer service charge being levied on the property. The charge is included as a line item entitled “ATAS SEWER CHARGE” on the customer’s property tax statements.

The public hearing for levying sewer service charges was publicly noticed on May 21 and 28, 2026.

A list of properties by Assessor Property Numbers (APNs) and levy amount (which does not include the two-dollar County fee) are itemized on Exhibit A of the Draft Resolution available in the City Engineer’s Office. Any questions or concerns received during the public hearing should be referred to staff for resolution prior to submitting the charges to the County Auditor by the July 2026 deadline.

ALTERNATIVES TO THE STAFF RECOMMENDATION:

None recommended.

FISCAL IMPACT:

The City will collect an estimated $6,960,340 in sewer service charges for Fiscal Year 2026-27 if Council adopts the Draft Resolution. Revenue from sewer service charges is paid to the City twice each year. An additional two dollars are added to each property on the tax roll to cover the County fee to administer the levy process.

REVIEWED BY OTHERS:

This item has been reviewed by the Deputy Administrative Services Director and City Attorney.

REVIEWED AND APPROVED FOR COUNCIL AGENDA:

James R. Lewis, City Manager
ATTACHMENTS:

1. Draft Resolution

2. Exhibit A can be viewed online at the following link or in the City Engineer’s Office: Exhibit A

Page 21 of 250 ends

6/9/26 | Item H1| Attachment 1

DRAFT RESOLUTION

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ATASCADERO, CALIFORNIA, ADOPTING SEWER SERVICE
CHARGES TO BE ADDED TO THE 2026-2027 PROPERTY TAX ROLLS WHEREAS, the City Council of the City of Atascadero (hereafter referred to as City Council) has duly held a public hearing on June 9, 2026 concerning the addition of the 2026-2027 sewer service charges to the 2026-2027 property tax bills; and WHEREAS, due notice was given to the public in accordance with Section 5470 et seq of the Health and Safety Code; and
WHEREAS, the City Council of the City of Atascadero approved the current sewer service rates on May 12, 2026 that become effective on July 1, 2026; and WHEREAS, at said public hearing the report marked “Exhibit A”, on file with the City Clerk and incorporated herein by reference, containing such charges reflecting said increases in sewer service rates was duly received by said Council; and WHEREAS, at said public hearing opportunity was given for filing objections and protests and for presentation of testimony of other evidence concerning same; and WHEREAS, it is in the public interest that this body adopt the charges and determine and confirm the report presented at the hearing.

NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Atascadero:

SECTION 1. That the recitals set forth hereinabove are true, correct and valid.

SECTION 2. That the City Council hereby adopts the service charges set forth on the report marked “Exhibit A” which is on file in the City Clerk’s Office and hereby expressly incorporated herein by reference as though here fully set forth; and the City Council hereby determines and confirms the report containing such charges as set forth in said “Exhibit A” and hereby further determines and confirms that each and every service charge set forth in said report is true and accurate and is in fact owed.

SECTION 3. That the charges as so confirmed and determined and adopted shall appear as separate items on the tax bill of each parcel listed in said report, and such charges shall be collected at the same time and in the same manner as ordinary County ad valorem taxes are collected, and are subject to the same penalties in the same procedure and sale in case the delinquency is provided for such taxes.

SECTION 4. The City Clerk shall file a certified copy of this Resolution and said Exhibit A with the County Auditor upon its adoption.

SECTION 5. This Resolution is approved by at least a two-thirds vote of said Council.

Page 22 of 250 ends

6/9/26 | Item H1| Attachment 1
PASSED AND ADOPTED at a regular meeting of the City Council held on the 9th day of June, 2026.

On motion by Council Member ______ and seconded by Council Member _______, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

CITY OF ATASCADERO:
________________________________
Charles Bourbeau, Mayor
ATTEST:

Lara K. Henderson, City Clerk

Page 23 of 250 ends

CITY OF ATASCADERO
CITY COUNCIL STAFF REPORT Item H2
Department: Administrative
Services
Date: 6/9/26
Placement: Public Hearing
TO: JAMES R. LEWIS, CITY MANAGER
FROM: CINDY CHAVEZ, DEPUTY DIRECTOR OF ADMINISTRATIVE SERVICES PREPARED BY: DAWN PATTERSON, FINANCE ANALYST
SUBJECT: Apple Valley Assessment Districts
RECOMMENDATIONS:

Council:

1. Adopt Draft Resolution A, approving the final Engineer’s Report regarding the Street and Storm Drain Maintenance District No. 01 (Apple Valley), and the levy and collection of annual assessments related thereto for fiscal year 2026/2027.

2. Adopt Draft Resolution B, ordering the levy and collection of assessments for fiscal year 2026/2027 for Street and Storm Drain Maintenance District No. 01 (Apple Valley).

4. Adopt Draft Resolution D, ordering the levy and collection of assessments for fiscal year 2026/2027 for Landscaping and Lighting District No. 01 (Apple Valley).

DISCUSSION:

The City Council formed and began assessing Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) in 2005. This district was formed to provide funding for future routine maintenance of the streets, storm drains and sidewalks in the Apple Valley subdivision.

The City Council also formed and began assessing Landscaping and Lighting Maintenance District No. 01 (Apple Valley) in 2005. This district was formed to provide for funding and maintenance of street trees, open space, park area, medians, walkways, paths and other landscape and lighting improvements within the Apple Valley subdivision.

NBS, an independent financial consultant, was hired to prepare the engineer’s report for the two districts. The engineer’s reports and the levies must be approved by Council annually. This is done in a two-step process. Last month, three resolutions for each district (a total of 6 resolutions in all) were passed to begin the process of continuing the levies. At that time, the Engineer’s Reports were preliminarily approved, proceedings were initiated for the levy, and the date of

Page 24 of 250 ends

6/9/26 | Item H2 | Staff Report
tonight’s public hearing was established. The resolutions that are before the Council tonight are for the final approval of the Engineer’s Reports and for the approval of the annual levies.

The proposed assessments for fiscal year 2026/2027 are less than the Maximum Assessment Rate. In accordance with the formula voters of the district adopted in 2005, the Maximum Assessment Rate may be increased for inflation by the greater of the Consumer Price Index (CPI) or 3.0%. The Maximum Assessment Rate was increased 3.0% (CPI) this year for both districts.

An Assessment Information Notice was mailed to all property owners recently. The notice provided the date of the upcoming June 9, 2026, Public Hearing, information on how to participate in the meeting, staff contact information, and the proposed and current levies for both districts.

Staff has reviewed the short- and long-term costs to maintain the districts and recommends the total cost of both districts of $1,450 remains flat when compared to the prior year. The Street and Storm Drain District is about 56% of the allowable maximum annual assessment and the Landscaping and Lighting District levy is about 42% of the allowable maximum annual assessment.

District Amount Per EBU
Assessment
Fiscal Year 2025-26
Amount Per EBU
Proposed
Assessment
Fiscal Year 2026-27
Atascadero Street and Storm Drain
Maintenance District No. 01 Apple Valley $ 550.00 $ 550.00 Atascadero Landscaping and Lighting
Maintenance District No. 01 Apple Valley $ 900.00 $ 900.00 The levies for fiscal year 2026/2027 are proposed with no increases and reserves are sufficient for now; however, staff predicts that the districts will likely see future increased costs due to aging infrastructure and increases in utilities, materials, and labor costs. City staff will continue to maximize efficiencies and minimize these increases as much as possible.

FISCAL IMPACT:

Annual assessments for 2026/2027 will total $38,500 for road/drainage system maintenance and $63,000 for landscape and lighting maintenance. These amounts will be assessed to the owners of parcels in Apple Valley. Contributions of $10,820 for half the cost of the park will be made from the City’s General Fund.

Page 25 of 250 ends

6/9/26 | Item H2 | Staff Report
REVIEWED BY OTHERS:

This item has been reviewed by the Deputy Administrative Services Director.

REVIEWED AND APPROVED FOR COUNCIL AGENDA
James R. Lewis, City Manager
ATTACHMENT(S):

1. Draft Resolution A

2. Draft Resolution B

3. Engineer’s Annual Levy Report - Street and Storm Drain Maintenance District No. 01 (Apple Valley)

4. Draft Resolution C

5. Draft Resolution D

6. Engineer’s Annual Levy Report – Landscaping and Lighting District No. 01 (Apple Valley)

Page 26 of 250 ends

6/9/26 | Item H2 | Attachment 1

DRAFT RESOLUTION A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ATASCADERO, CALIFORNIA, APPROVING THE FINAL ENGINEER’S

REPORT REGARDING THE STREET AND STORM DRAIN
MAINTENANCE DISTRICT NO. 01 (APPLE VALLEY), AND THE LEVY

AND COLLECTION OF ANNUAL ASSESSMENTS RELATED THERETO
FOR FISCAL YEAR 2026/2027
WHEREAS, the City Council of the City of Atascadero, California (hereafter referred to as “City Council”), pursuant to the provisions the Benefit Assessment Act of 1982, Chapter 6.4 of the California Government Code, beginning with Section 54703 (hereafter referred to as the “Act”), did by previous Resolution order the Engineer, NBS, to prepare and file a report in accordance with the Act in connection with Street and Storm Drain Maintenance District No. 01 (Apple Valley) (hereafter referred to as the “District”) and the proposed levy and collection of assessments related thereto for fiscal year 2026/2027, said fiscal year starting July 1, 2026 and ending June 30, 2027; and WHEREAS, the Engineer has prepared and filed with the City Clerk of the City of Atascadero and the City Clerk has presented to the City Council such report entitled “Engineer’s Annual Levy Report for Street and Storm Drain Maintenance District No. 01 (Apple Valley), fiscal year 2026/2027” (hereafter referred to as “Engineer’s Report”) in accordance with the Act; and WHEREAS, the City Council has carefully examined and reviewed the Engineer’s Report as presented, and is satisfied with the items and documents as set forth therein, and finds that the levy of assessments has been spread in accordance with the special benefits received from the improvements, operation, maintenance and services to be performed, as set forth in said Engineer’s Report.

NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Atascadero:

SECTION 1. The above recitals are true and correct.

SECTION 2. The Engineer’s Report as presented, consists of the following:
a) Plans and specifications that describe the District and Improvements. b) Method of Apportionment that outlines the special benefit conferred on properties within the District from the improvements and the calculations used to establish each parcel’s proportional special benefit assessment.
c) The Budget that outlines the costs and expenses to service and maintain the improvements including incidental expenses to operate the District. d) An Assessment Diagram that identifies the boundaries of the District.

Page 27 of 250 ends

6/9/26 | Item H2 | Attachment 1
e) An Assessment Roll containing each of the Assessor Parcel Numbers that comprise the District and the proportional maximum assessment and the assessment for fiscal year 2026/2027.

SECTION 3. The Engineer’s Report as presented, is hereby approved, and is ordered to be filed in the Office of the City Clerk as a permanent record and to remain open to public inspection.

SECTION 4. The City Clerk shall certify to the passage and adoption of this Resolution and the minutes of this meeting shall so reflect the adoption and approval of the Engineer’s Report.

PASSED AND ADOPTED at a regular meeting of the City Council held on the 9 th day of
June, 2026.

On motion by Council Member ______ and seconded by Council Member _______, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

CITY OF ATASCADERO:
______________________
Charles Bourbeau, Mayor
ATTEST:

Lara K. Henderson, City Clerk

Page 28 of 250 ends

6/9/26 | Item H2 | Attachment 2

DRAFT RESOLUTION B

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ATASCADERO, CALIFORNIA, ORDERING THE LEVY AND
COLLECTION OF ASSESSMENTS FOR FISCAL YEAR 2026/2027 FOR STREET AND STORM DRAIN MAINTENANCE DISTRICT NO. 01
(APPLE VALLEY)
WHEREAS, the City Council of the City of Atascadero, California (hereafter referred to as City Council) has by previous Resolutions initiated proceedings to levy special benefit assessments against parcels of land within Street and Storm Drain Maintenance District No. 01 (Apple Valley) (hereafter referred to as the “District”) for the fiscal year commencing July 1, 2026 and ending June 30, 2027; pursuant to the provisions of the Benefit Assessment Act of 1982, Chapter 6.4 of the California Government Code, beginning with Section 54703 (hereafter referred to as the “Act”) to pay the costs and expenses of operation, maintenance, repair and servicing of local street right-of-way improvements and storm drain facilities related thereto; and WHEREAS, the Engineer selected by the City Council has prepared and filed with the City Clerk, and the City Clerk has presented to the City Council an Engineer’s Report in connection with the proposed levy of special benefit assessments upon eligible parcels of land within the District, and the City Council did by previous Resolution adopt and approve said Engineer’s Report; and WHEREAS, the City Council desires to levy and collect assessments against parcels of land within the District for the fiscal year commencing July 1, 2026 and ending June 30, 2027, to pay the costs and expenses of operation, maintenance, repair and servicing of local street right-ofway improvements and storm drain facilities related thereto; and WHEREAS, the City Council conducted in May 2005 a property owner protest ballot proceeding for the District assessments proposed to be levied and majority protest of the assessments described in the Engineer’s Report did not exist pursuant to the provisions of the California State Constitution Article XIIID.

NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Atascadero:

SECTION 1. Following notice duly given, the City Council has held a full and fair Public Hearing regarding its Resolution approving the Engineer’s Report prepared in connection therewith; the levy and collection of assessments, and considered the oral and written statements, protests and communications made or filed by interested persons.

Page 29 of 250 ends

6/9/26 | Item H2 | Attachment 2
c) The net amount to be assessed upon the lands within the District is in accordance and apportioned by a formula and method which fairly distributes the net amount among the eligible parcels in proportion to the special benefit to be received by each parcel from the improvements and services for the fiscal year commencing July 1, 2026 and ending June 30, 2027.

SECTION 3. The City Council hereby orders the proposed improvements to be made, which improvements are briefly described as the maintenance, operation, administration and servicing of the improvements that may include, but is not limited to local street right-of-way improvements and storm drain facilities within the District and the appurtenant facilities related thereto.

SECTION 4. The maintenance, operation and servicing of improvements shall be performed pursuant to the Act and the County Auditor of San Luis Obispo County shall enter on the County Assessment Roll opposite each parcel of land the amount of levy, and such levies shall be collected at the same time and in the same manner as the County taxes are collected. After collection by the County, the net amount of the levy shall be paid to the City.

SECTION 5. The City shall deposit the money representing assessments collected by the County for the District to the credit of a fund for the Street and Storm Drain Maintenance District No. 01 (Apple Valley), and such money shall be expended only for the maintenance, operation and servicing of the improvements as described in the Engineers Report and generally described in Section 3 of this Resolution.

SECTION 6. The adoption of this Resolution constitutes the establishment of the maximum assessment rate described in the Engineer’s Report and the levy of assessments for the fiscal year commencing July 1, 2026 and ending June 30, 2027.

SECTION 7. The City Clerk or her designee is hereby authorized and directed to file the levy with the County Auditor, per Section 54718 of the Act, upon adoption of this Resolution.

PASSED AND ADOPTED at a regular meeting of the City Council held on the 9 th day of
June, 2026.

On motion by Council Member ______ and seconded by Council Member _______, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

CITY OF ATASCADERO:
_______________________________
Charles Bourbeau, Mayor
ATTEST:

Lara K. Henderson, City Clerk

Page 30 of 250 ends

Fiscal Year 2026/27 Engineer’s Report
Street and Storm Drain Maintenance
District No. 01 (Apple Valley)
May 2026
6/9/26 | Item H2 | Attachment 3

Page 31 of 250 ends

CITY OF ATASCADERO
Street and Storm Drain Maintenance District No. 01
(Apple Valley)

6500 Palma Avenue
Atascadero, CA 93422
Phone – (805) 461-5000
Fax – (805) 461-7612

CITY COUNCIL
Charles Bourbeau, Mayor
Mark Dariz, Mayor Pro Tem
Susan Funk, Council Member
Seth Peek, Council Member
Heather Newsom, Council Member

AGENCY STAFF
Jim Lewis, City Manager
Jeri Rangel, Administrative Services Director
Cindy Chavez, Deputy Director of Administrative Services NBS
Corina Chavez, Project Manager
Danielle Robison, Administrator

6/9/26 | Item H2 | Attachment 3

Page 32 of 250 ends

TABLE OF CONTENTS

1. Engineer’s Letter ............................................................................................................. 1

2. Executive Summary ........................................................................................................ 2

3. Plans and Specifications .................................................................................................. 4

3.1 Benefiting Properties within the District ................................................................ 4

3.2 Funding Authorized by the 1982 Act ....................................................................... 4

3.3 Description of Improvements and Services ............................................................ 4

4. Estimate of Costs ............................................................................................................ 9

5. Method of Assessment ................................................................................................. 10

5.1 General .................................................................................................................. 10

5.2 Benefit Analysis ..................................................................................................... 10

5.3 Assessment Methodology ..................................................................................... 11

5.4 Assessment Range Formula .................................................................................. 14

6. Assessment Diagram ..................................................................................................... 15

7. Assessment Roll ............................................................................................................ 16 6/9/26 | Item H2 | Attachment 3

Page 33 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Street and Storm Drain Maintenance District No. 01 (Apple Valley) 1

1. ENGINEER’S LETTER
WHEREAS, on March 24, 2005 by Resolution No. 2005-042, the City Council of the City of Atascadero (the ”City”), State of California, in accordance with and pursuant to the provisions of the Benefit Assessment Act of 1982, being Chapter 6.4 of the California Government Code, commencing with Section 54703 (hereafter referred to as the “1982 Act”), and in compliance with the substantive and procedural requirements of the California State Constitution Article XIIID (hereafter referred to as the “California Constitution”), established the City of Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) (the “District”); and
WHEREAS, on May 12, 2026, the City Council, adopted its Resolution Initiating Proceedings for the Annual Levy of Assessments and Ordering the Preparation of an Engineer’s Report for the District; and WHEREAS, the Resolution Initiating Proceedings directed NBS to prepare and file a report describing the general nature, location, and extent of the improvements to be maintained; an estimate of the costs of the maintenance, operations, and servicing of the improvements for the District for the referenced fiscal year; a diagram for the District, showing the area and properties to be assessed; and an assessment of the estimated costs of the administration, maintenance, operations, and servicing the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received.

NOW THEREFORE, the assessments as detailed in this Engineer’s Report and as summarized in the table below are made to cover the portion of the estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the District in proportion to the special benefit received. The following table summarizes the proposed assessment for Fiscal Year 2026/27:

FY 2026/27 Summary of Assessment
Description Amount
Estimated Annual Costs $212,000
Capital Reserve Collection/(Uses) 24,090
Levy Adjustments (197,590)
Balance to Levy $38,500
Fiscal Year 2026/27 Maximum Rate $983.13
Fiscal Year 2026/27 Proposed Applied Rate $550.00
I, the undersigned, respectfully submit the enclosed Engineer’s Report and, to the best of my knowledge, information, and belief, the Engineer’s Report, Assessments, and the Assessment Diagram herein have been prepared, computed, and levied in accordance with the assessment methodology adopted, approved, and ordered by the City Council of the City of Atascadero and the 1982 Act.

City Engineer
6/9/26 | Item H2 | Attachment 3

Page 34 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Street and Storm Drain Maintenance District No. 01 (Apple Valley) 2

2. EXECUTIVE SUMMARY
Pursuant to the provisions of the Benefit Assessment Act of 1982, being Chapter 6.4 of the California Government Code, commencing with Section 54703 (hereafter referred to as the “1982 Act”), and in compliance with the substantive and procedural requirements of the California State Constitution Article XIIID (hereafter referred to as the “California Constitution”), the City Council of the City of Atascadero, County of San Luis Obispo, State of California (hereafter referred to as “City”), proposed to form and levy special benefit assessments for the district designated as:

Street and Storm Drain Maintenance District No. 01 (Apple Valley) (hereafter referred to as the “District”), which includes the lots and parcels of land within the residential subdivision known as Apple Valley, Tract 2495 within the City limits of the City. This Engineer’s Report (hereafter referred to as the “Report”) has been prepared in connection with the levy and collection of annual assessments related thereto for Fiscal Year 2026/27.

The City Council formed the District and provided for the levy and collection of annual assessments on the County tax rolls to provide ongoing funding for the costs and expenses required to service and maintain the street and storm drain improvements and facilities associated with and resulting from the development of properties within the District. The improvements to be provided by the District and the assessments described herein are made pursuant to the 1982 Act and the substantive and procedural provisions of the California Constitution.

This Report describes the District, the improvements, and the proposed assessments to be levied against properties in connection with the special benefits the properties will receive from the maintenance and servicing of the District improvements and facilities. The annual assessments described herein will provide a funding source for the continued operation and maintenance of streets, storm drain system, and appurtenant facilities installed in connection with the development of properties within the District.

The improvements and assessments described in this Report are based on the development of properties within the District and represent an estimate of the direct expenditures, incidental expenses, and fund balances that will be necessary to maintain and service the streets and storm drain system that provides special benefits to properties within the District. The structure of the District (organization), the improvements, the method of apportionment, and assessments described herein are based on current development plans and specifications for Tract 2495; and by reference these plans and specifications are made part of this Report.

The word “parcel,” for the purposes of this Report, refers to an individual property assigned its own Assessor’s Parcel Number (APN) by the San Luis Obispo County Assessor’s Office. The San Luis Obispo County Auditor/Controller uses Assessor’s Parcel Numbers and specific Fund Numbers to identify properties to be assessed on the tax roll for the special benefit assessments.

As part of this District’s formation, the City conducted a Property Owner Protest Ballot proceeding for the proposed levy of a new assessment pursuant to the provisions of the California Constitution, Article XIIID Section 4. In conjunction with this ballot proceeding, the City Council conducted a noticed public hearing to 6/9/26 | Item H2 | Attachment 3

Page 35 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Street and Storm Drain Maintenance District No. 01 (Apple Valley) 3 consider public testimonies, comments, and written protests regarding the formation of the District and levy of assessments. Upon conclusion of the public hearing, property owner protest ballots received were opened and tabulated to determine whether majority protest existed (ballots were weighted based on assessment amounts), and by resolution the City Council confirmed the results of the ballot tabulation.

The tabulation of the ballots indicated that majority protest did not exist for the proposed assessments and the assessment range formula presented and described herein; therefore, the City Council approved the Report (as submitted or amended), ordered the formation of the District, and approved the levy and collection of assessments. The assessments for Fiscal Year 2005/2006 were submitted to the San Luis Obispo County Auditor/Controller for inclusion on the property tax roll for each parcel.

Each subsequent fiscal year, a Report shall be prepared and presented to the City Council describing any changes to the improvements, proposed services, the annual budget or assessments for that fiscal year and the City Council may hold a noticed public hearing regarding these matters prior to approving and ordering the proposed levy of assessments. If the proposed assessments for the District exceed the maximum assessment described herein (as approved by the property owners), the new or increased assessment must be confirmed through another property owner protest ballot proceeding before such an assessment may be imposed. It should be noted that an increased assessment to an individual property resulting from changes in development or land use does not constitute an increased assessment. 6/9/26 | Item H2 | Attachment 3

Page 36 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Street and Storm Drain Maintenance District No. 01 (Apple Valley) 4

3. PLANS AND SPECIFICATIONS

3.1 Benefiting Properties within the District
The territory within the District consists of the lots, parcels, and subdivisions of land within the proposed residential subdivision known as the Apple Valley, Tract 2495, which encompasses an area of land totaling approximately twenty-eight acres (27.71 acres).

This residential subdivision includes seventy (70) single-family residential homes. The subdivision is situated in the northern portion of the City just southwest of Highway 101 and is generally located:
 South of Del Rio Road;
 North of Conejo Road;
 West of Ramona Road; and,
 East of Graves Creek.

3.2 Funding Authorized by the 1982 Act
As generally defined by the 1982 Act and applicable to this District, the City may impose a benefit assessment to finance the maintenance and operation costs of the following services:
 Drainage and Flood Control;
 Streets and Roads.

In addition to imposing a benefit assessment for the annual maintenance and operation of the District improvements, the City may also authorize an assessment or utilize existing assessment revenues to finance the installation, construction, or replacement of drainage and flood control facilities as well as the street and road improvements (with some limitations). While such activities are permitted under the 1982 Act, the budget and assessments for this District only provide for normal maintenance and operation of the improvements. Since most major rehabilitation/construction projects result from unforeseen damages, the extent and cost of such projects are not easily predicted and to accumulate funds as part of the normal annual assessments would not be reasonable. If such funding becomes necessary, the City may present a new or increased assessment to the property owners to support the projects.

3.3 Description of Improvements and Services
The purpose of this District is to fund the activities necessary to maintain and service the local streets and the drainage and flood control systems constructed and installed in connection with development of properties within the residential subdivision known as Apple Valley, Tract 2495 pursuant to approved development plans and agreements. The improvements may consist of all or a portion of the public streets, drainage and flood control facilities associated with Tract 2495 and the maintenance of these improvements may include but are not limited to the materials, equipment, labor, and incidental expenses deemed necessary to keep these improvements in satisfactory condition.

6/9/26 | Item H2 | Attachment 3

Page 37 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Street and Storm Drain Maintenance District No. 01 (Apple Valley) 5 The maintenance of the improvements and related activities shall be funded entirely or partially through the District assessments. The District improvements and services are generally described as:
 Street maintenance that may include but is not limited to the repair and servicing of street surfaces, curbs, gutters, bridges, driveway approaches, sidewalks, barricades, delineation, signage, or other facilities within the public street rights-of-way installed in connection with the development of properties in Tract 2495 and that have been dedicated to the City;  Storm drain and flood control maintenance that may include but is not limited to inspection, repair and servicing of drainage basins, inlets, catch basins, manholes, outlets, drywells, pumps, filters, and storm drain pipes installed in connection with the development of properties of Tract 2495 as well as any off-site improvements and facilities directly associated with the aforementioned infrastructure that is deemed necessary to service or protect the properties including waste water treatment;
 The appurtenant, equipment, materials, and service contracts related to the aforementioned improvements and facilities;
 Specifically excluded are those improvements or facilities: located on private property or common areas; that may be provided or maintained by an agency other than the City; that may be provided by another assessment or tax levied by the City; or that may be provided and maintained by a Homeowner’s Association or similar entity.

Detailed maps and descriptions of the location and extent of the specific improvements to be maintained by the District are on file in the Office of Public Works and by reference are made part of this Report. Those portions of the District improvements that may be identified as general benefit or will be funded in whole or in part by other revenue sources as part of the approved development agreements, will not be included as part of the District assessments. The net annual cost to provide and maintain the improvements determined to be of special benefit shall be allocated to each property in proportion to the special benefits received.

3.3.1 STREET MAINTENANCE
The street maintenance program may include but is not limited to: the repair of potholes, cracks, or other failures in the asphalt surface; repair or replacement of curbs, gutters, driveway approaches, and sidewalks as required as part of maintaining the streets; repair or installation of street signs, barricades, fencing, or other delineation; mechanized sweeping and cleaning of the streets and gutters; slurry sealing, overlays, and restriping of the street surfaces. The specific activities and timing of various street and road maintenance services shall be determined by the City’s Public Works Department as necessary to extend the life of the streets or to improve traffic circulation and safety as available funding permits. Specifically, the street improvements for this District are identified as:
 Approximately 106,460 square feet of asphalt street surface located on the perimeter of the development (south half of Del Rio Road); and the various interior streets identified as Via Colonia Court, San Ramon Road, Via Huerto Court, Avenida Manzana, and San Ramon Road. 6/9/26 | Item H2 | Attachment 3

Page 38 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Street and Storm Drain Maintenance District No. 01 (Apple Valley) 6  Approximately 5,320 linear feet of curb and gutter along Del Rio Road, Via Colonia Court, San Ramon Road, Via Huerto Court, Avenida Manzana, San Ramon Road, and Conejo Road;  Approximately 3,545 square feet of decorative street pavers and 1,254 linear feet of curb and gutter in and around the two median islands on San Ramon Road (entryways to the development at Del Rio Road and Conejo Road);
 Approximately 70 driveway approaches, 25,394 square feet of sidewalks and various street signs within the District;
 Specifically, not included as part of the street maintenance program are the costs associated with major replacements or reconstruction. Although the District assessments will provide funding for regular maintenance and servicing of the improvements that will extend the useful life of the street improvements, the assessments are not intended to fund major replacements or reconstruction of the street surfaces or adjacent improvements such as curbs, gutters, or driveway approaches. The costs of extensive replacement or reconstruction activities such as grinding and resurfacing of the asphalt; and replacement of curbs, gutters, driveway approaches, and sidewalks is significantly more than the amount that can reasonably be collected annually under the provisions of the 1982 Act. When such repairs or activities are deemed necessary, the City will consider various financing options including new or increased assessments for property owner approval.

The Public Works Department shall authorize the operational activities and maintenance of the public street and right-of-way improvements, facilities, and services that may include, but are not limited to:
 Regular street sweeping services necessary to control dirt and debris on street surfaces and gutters;
 Annual inspection of street surface and repair of potholes and surface cracks as needed;  Periodic slurry or overly of street surfaces and driveway approaches (typically one or the other once every five years);
 Periodic re-striping of traffic lanes, bike lanes, street parking areas, crosswalks, and intersections (typically in conjunction with slurry or overly activities);  Graffiti abatement of public improvements within the street rights-of-way that are maintained by the District including but not limited to sandblasting, repainting and repair of fences, walls, barricades, sidewalks, and signage as needed;
 Annual inspection and periodic repair or replacement of decorative street- pavers as needed;  Annual inspection and minor repairs of curbs, gutters, driveway approaches, and sidewalks including partial segment replacements as needed to ensure pedestrian and vehicle safety or the integrity of the street;
 Annual inspection and periodic repair or rehabilitation of street signs and traffic control devices;  Annual inspection and repair of barricades, street-fencing, delineation or retaining walls within the street rights-of-way as needed.
6/9/26 | Item H2 | Attachment 3

Page 39 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Street and Storm Drain Maintenance District No. 01 (Apple Valley) 7 A portion of the services described above are not performed on an annual basis but rather on a periodic basis, such as slurry sealing or overlaying the asphalt streets, and the funds necessary for these activities are collected in installments as part of the annual assessments. The monies collected each year for these services will be accumulated in a special fund of the District (Reserve Fund or Capital Improvement Fund). The monies accumulated for these activities shall be spent when sufficient funds have been accumulated to perform the services deemed necessary by the City (approximately every five years). This process of accumulating funds (installments) shall continue until such time the District is dissolved; or the City determines that such funding procedures require modification. Changes in the process of accumulating funds that would result in an increase to the annual assessment rate must be presented to the property owners for approval prior to imposing such an increase.

The annual assessments for this District are intended to support a storm drain and flood control maintenance program that will adequately regulate and control storm water runoff resulting from the development of properties within the District. This maintenance program may include but is not limited to:
inspection and documentation of the system; cleaning, servicing, or repair of the facilities and equipment; and the partial replacement or rehabilitation of equipment and facilities. The storm drain and flood control system includes but is not limited to:
 Approximately 30,050 square feet of drainage basin area;  Twenty-eight (28) inlets, outlets, and manholes located throughout Tract 2495;  Approximately 2,100 linear feet of storm drain pipe ranging from 18 inches to 42 inches in diameter.

The Public Works Department shall authorize and schedule the operational activities and maintenance of the storm drain and storm water pollution treatment infrastructure, facilities, and services that may include, but are not limited to:
 Cleaning of storm drain inlets, catch basins, manholes, and pipes as needed;  Stencil maintenance and documentation of facilities as required by Federal, State, or County regulations;
 Cleaning and landscape maintenance of the drainage basins, bio-filter areas or channel ways as needed;
 Debris removal and pest control in and around the storm drain facilities as needed;  Minor repairs and maintenance of the storm drain inlets, catch basins, and outlets as needed;  Street sweeping services necessary to control debris and water flow for the storm drain system; and,
6/9/26 | Item H2 | Attachment 3

Page 40 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Street and Storm Drain Maintenance District No. 01 (Apple Valley) 8  The operational costs related to NPDES compliance requirements.

A portion of the services described above are not performed on an annual basis but rather on a periodic basis such as minor repairs to the storm drain inlets, catch basins, and outlets, and the funds necessary for these activities are collected in installments as part of the annual assessments. The monies collected each year for these services will be accumulated in a special fund of the District (Reserve Fund or Capital Improvement Fund).

The monies accumulated for these activities shall be spent as needed to perform the services deemed necessary by the City. This process of accumulating funds (installments) shall continue until such time the District is dissolved; or the City determines that such funding procedures require modification. Changes in the process of accumulating funds that would result in an increase to the annual assessment rate must be presented to the property owners for approval prior to imposing such an increase. 6/9/26 | Item H2 | Attachment 3

Page 41 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Street and Storm Drain Maintenance District No. 01 (Apple Valley) 9

4. ESTIMATE OF COSTS
Budget 2026/27 Assessment

DIRECT COSTS
Streets, Roads & Storm Drain Improvements
Street Maintenance $202,250
Inspection & Operational Services - Roads, Drainage 3,260 Traffic Sign Replacement 0
Total Annual Direct Costs $205,510

ADMINISTRATION EXPENSES
City Annual Administration $2,090
Engineer's Report & Services 4,200
Public Noticing 200
Total Annual Administration Costs $6,490
TOTAL DIRECT & ADMINISTRATION COSTS $212,000

CAPITAL RESERVE COLLECTIONS/(USES)
Collection for Street Surface Activities $22,560
Collection Street Re-striping 80
Collection for Repair Activities: Curbs, Gutters, Approaches & Sidewalks 850 Collection for Debris Removal 0
Collection for Storm Drain Fencing 0
Collection for Storm Drain Infrastructure 600
Total Annual Capital Reserve Collections/(Uses) $24,090

LEVY ADJUSTMENTS
Interest Income - Improvement Fund ($14,657)
Interest Income - Operating Reserve Fund (333)
Reserve Fund Collection/(Use) (182,600)
Total Levy Adjustments ($197,590)

BALANCE TO LEVY $38,500

DISTRICT STATISTICS
Total Parcels 74
Parcels Levied 70
Total EBU (1) 70
Levy per EBU $550.00
Maximum Levy per EBU $983.13

FUND BALANCE INFORMATION
Beginning Operating Reserve Balance $14,203
Operational Reserve Interest 333
Surplus Transfer from Improvement Fund 194,982
Operational Reserve Collection (Use) (197,590)
Estimated Ending Operating Reserve Balance $11,928

Beginning Improvement Fund Balance $681,657
Improvement Fund Interest 14,657
Surplus Transfer to Operations Fund (194,982)
Improvement Fund Collection/(Use) 24,090
Estimated Ending Improvement Fund Balance $525,422
(1) Levy per EBU rate does not include the County of San Luis Obispo fee of $2.00 per parcel 6/9/26 | Item H2 | Attachment 3

Page 42 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Street and Storm Drain Maintenance District No. 01 (Apple Valley) 10

5. METHOD OF ASSESSMENT

5.1 General
The 1982 Act permits the establishment of assessment districts by agencies for the purpose of providing for the maintenance, operation, and servicing of drainage and flood control improvements as well as streets, roads, and appurtenant facilities. The 1982 Act further requires that the cost of these improvements be levied according to benefit rather than assessed value:
“The amount of the assessment imposed on any parcel of property shall be related to the benefit to the parcel which will be derived from the provision of the service”.

Furthermore:
“The annual aggregate amount of the assessment shall not exceed the estimated annual cost of providing the service, except that the legislative body may, by resolution, determine that the estimated cost of work authorized … is greater than can be conveniently raised from a single annual assessment and order that the estimated cost shall be raised by an assessment levied and collected in installments…. The revenue derived from the assessment shall not be used to pay the cost of any service other than the service for which the assessment was levied.”
The method of apportionment described in this Report for allocation of special benefit assessments utilizes commonly accepted engineering practices in compliance with the provisions of the 1982 Act and the California Constitution. The formulas used for calculating assessments reflects the composition of parcels within the District and the improvements and services provided, to fairly apportion the costs based on the special benefits to each parcel.

5.2 Benefit Analysis
Each of the proposed improvements and services, and the associated costs and assessments have been carefully reviewed, identified and allocated based on special benefit pursuant to the provisions of the 1982 Act and the California Constitution. The street and storm drain improvements associated with this District were necessary and essential requirements for the orderly development of the properties within the District to their full potential, consistent with the development plans and applicable portions of the City’s General Plan. As such the ongoing operation, servicing, and maintenance of those improvements would otherwise be the direct financial obligation of each individual property owner. Since each parcel to be assessed within the District could not have been developed in the absence of these improvements and facilities, each parcel has a direct investment in the proper maintenance of the improvements that is over and above any general benefits that may be conferred by such improvements and services.

The ongoing maintenance and servicing of the District improvements is an integral part of the appearance, use and preservation of the properties within the District and such services to be funded by annual assessments confer a particular and distinct special benefit to those parcels. The proper maintenance of streets and appurtenant facilities allows individual parcels to be used to their fullest extent by ensuring the safe and 6/9/26 | Item H2 | Attachment 3

Page 43 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Street and Storm Drain Maintenance District No. 01 (Apple Valley) 11 efficient movement of people and goods to and from the benefiting properties. Likewise, the maintenance and servicing of the storm drain system ensures proper water flow and control of excess water during periods of rain, which is essential to preservation and protection of private property. Together the maintenance and servicing of the streets and storm drain system contributes to a specific enhancement of each of the parcels within the District and the absence of adequate maintenance and servicing of the District improvements could eventually have a negative impact on properties within the District.

Although the improvements may include public streets and storm drain facilities that connect to similar facilities outside the District boundaries, it is clear that the construction and installation of these improvements were only necessary for the development of properties within the District. As such, these improvements were not required nor necessarily desired by any properties or developments outside the District boundary and any public access or use of the improvements by others is incidental. Therefore, it has been determined that the ongoing maintenance, servicing and operation of the District improvements provide no measurable general benefit to properties outside the District or to the public at large, but clearly provide distinct and special benefits to properties within the District. Any improvement or portion thereof (particularly off-site storm drain facilities) that may be considered general benefit shall be funded by other revenue sources and not included as part of the special benefit assessments allocated to properties within this District. However, the costs associated with installation or improvement of any off-site facilities that benefit the parcels within this District as well as other properties (shared benefit) may be allocated to the parcels within the District based on their proportional special benefit from such improvements.

5.3 Assessment Methodology
The costs associated with the improvements and services shall be fairly distributed among the parcels based upon the special benefit received by each parcel. Additionally, in compliance with the California Constitution Article XIIID Section 4, each parcel’s assessment may not exceed the reasonable cost of the proportional special benefit conferred to that parcel. The benefit formula used to determine the assessment obligation is therefore based upon both the improvements that benefit the parcels within the District as well as the proposed land use of each property as compared to other parcels that benefit from those specific improvements.

The method of apportionment established for this District and described herein, reflects the proportional special benefit each property receives from the improvements and services based on the actual or proposed land use of that parcel as compared to other properties within the District based on similarities and differences in parcel land use.

5.3.1 EQUIVALENT BENEFIT UNITS:

To assess benefits equitably it is necessary to relate each property’s proportional special benefits to the special benefits of the other properties within the District. The method of apportionment established for most districts formed under the 1982 Act utilizes a weighted method of apportionment known as an Equivalent Benefit Unit (EBU) methodology that uses the single-family home site as the basic unit of assessment. A single-family home site equals one Equivalent Benefit Unit (EBU) and the other land uses are converted to a weighted EBU based on an assessment formula that equates the property’s specific development status, type of development (land use), and size of the property, as compared to a single-family home site.

Although the Equivalent Benefit Unit method of apportioning special benefit is most commonly used and 6/9/26 | Item H2 | Attachment 3

Page 44 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Street and Storm Drain Maintenance District No. 01 (Apple Valley) 12 applied to districts that have a wide range of land use classifications (residential and non-residential use), this District is comprised of only residential properties and the following apportionment analysis of special benefit addresses only residential land uses. Not all land use types described in the following are necessarily applicable to the development of properties within this District, but are presented for comparison purposes to support the proportional special benefit applied to those land use types within the District.

5.3.2 EBU APPLICATION BY LAND USE:
(1) Single-family Residential — This land use is defined as a fully subdivided residential home site with or without a structure. This land use is assessed 1.0 EBU per lot or parcel. This is the base value that the other properties are compared and weighted against (i.e. Equivalent Benefit Unit “EBU”). (2) Multi-family Residential — This land use is defined as a fully subdivided residential parcel that has more than one residential unit developed on the property. (This land use typically includes apartments, duplexes, triplex etc., but does not generally include condominiums, town-homes or mobile-home parks). Based on average population densities and size of the structure as compared to a typical single-family residential unit, multi-family residential parcels shall be proportionately assessed for the parcel’s total number of residential units utilizing a sliding benefit scale. Although multi-family properties typically receive similar benefits to that of a single-family residential, it would not be reasonable to conclude that on a per unit basis, the benefits are equal. Studies have consistently shown that the average multi-family unit impacts infrastructure approximately 75% as much as a single-family residence (Sample Sources: Institute of Transportation Engineers Informational Report Trip Generation, Fifth Edition; Metcalf and Eddy, Wastewater Engineering Treatment, Disposal, Reuse, Third Edition). These various studies indicate that most public improvements and infrastructure are utilized and impacted at reduced levels by multi-family residential units and a similar reduction in proportional benefit is appropriate. Furthermore, it is also reasonable to conclude that as the density (number of units) increases; the proportional benefit per unit tends to decline because the unit size and people per unit usually decreases.

Page 45 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Street and Storm Drain Maintenance District No. 01 (Apple Valley) 13 (4) Planned-Residential Development — This land use is defined as any property for which a tentative or final tract map has been filed and approved (a specific number of residential lots and units has been identified) and the property is expected to be subdivided within the fiscal year or is part of the overall improvement and development plan for the District. This land use classification often times involves more than a single parcel (e.g. the approved tract map encompasses more than a single APN). Each parcel that is part of the approved tract map shall be assessed proportionately for the proposed or estimated residential type and units to be developed on that parcel as part of the approved tract map. Accordingly, each parcel is assigned an appropriate number of benefit units that reflects the development of that property at build-out. (The EBU assigned to each parcel shall represent the combination of single-family, condominium, multi-family units to be developed). (5) Vacant Residential — This land use is defined as property currently zoned for residential development, but a tentative or final tract map for the property has not yet been approved. Based upon the opinions of professional appraisers who appraise market property values for real estate in California, the land value portion of a property typically ranges from 20 to 30 percent of the total value of a developed residential property (the average is about 25 percent). Although the assessed value of an individual property is not a direct reflection of the property’s special benefit, this general correlation between land value and structure value does provide a reasonable basis for apportioning special benefit for vacant residential properties. Utilizing this twenty-five percent (25%) apportionment and the number of single-family residential units typically developed per acre of land (an average of 4 residential units per acre) an Equivalent Benefit Unit of 1.0 EBU per acre (4 units per acre x 25%) is derived and presents an appropriate apportionment of special benefit for vacant residential properties. Recognizing that the full and timely utilization of vacant property is reduced as the size of the property increases, it has been determined that the maximum EBU assigned to a vacant residential parcel shall not exceed 25.0 EBU (parcels in excess of 25 acres are assigned 25.0 EBU). Parcels less than one acre, shall be assigned a minimum of 1.0 EBU (similar to a vacant lot within a residential tract).
(6) Exempt Parcels — This land use identifies properties that are not assessed and are assigned 0.0 EBU. This land use classification may include but is not limited to:
 Lots or parcels identified as public streets and other roadways (typically not assigned an APN by the County);
 Dedicated public easements including open space areas, utility rights-of- way, greenbelts, parkways, parks, or other publicly owned properties that are part of the District improvements or may provide other benefits to private properties within the District.;  Private properties that cannot be developed independently from an adjacent property, such as common areas, sliver parcels, or bifurcated lots or properties with very restrictive development use.

These types of parcels are considered to receive little or no benefit from the improvements and are therefore exempted from assessment, but shall be reviewed annually by the assessment engineer to confirm the parcels current development status. Government owned properties or public properties are not necessarily exempt properties and shall be subject to special benefit assessment unless it qualifies for an exempt status.
6/9/26 | Item H2 | Attachment 3

Page 46 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Street and Storm Drain Maintenance District No. 01 (Apple Valley) 14 (7) Special Cases — In many districts where multiple land use classifications are involved, there are usually one or more properties for which the standard land use classifications do not accurately identify the special benefits received from the improvements. For example, a parcel may be identified as a Vacant Residential property, however only a small percentage of the parcel’s total acreage can actually be developed. In this case, an appropriate calculation would be based on the net acreage that can be utilized rather than the gross acreage of the parcel.

The following table provides a summary of land use classifications and the Equivalent Benefit Unit calculations previously outlined.

Property Type
Equivalent
Benefit Units Multiplier
Single-family Residential 1.00 Per Unit/Lot/Parcel
Multi-family Residential

0.75 Per Unit for the First 50 Units

0.50 Per Unit for Units 51-100

0.25 Per Unit for all Remaining Units
Condominium/Townhome Units 0.75 Per Unit
Planned Residential
Development

1.00 Per Planned SF Residential Lot

0.75 Per Planned Condominium

0.75 Per Unit for the First 50 Units

0.50 Per Unit for Units 51-100

0.25 Per Unit for all Remaining Units
Vacant Residential Land 1.00 Per Acre
Exempt Parcels 0.00 Per Parcel
The following formula is used to calculate each parcel’s EBU (proportional benefit).

Parcel Type EBU x Acres or Units = Parcel EBU
The total number of Equivalent Benefit Units (EBU’s) is the sum of the individual EBU's applied to parcels that receive special benefit from the improvements. An assessment amount per EBU (Assessment Rate) for the improvements is established by taking the total cost of the improvements and dividing that amount by the total number of EBU’s of the parcels benefiting from the improvements. This Rate is then applied back to each parcel’s individual EBU to determine the parcel’s proportionate benefit and assessment obligation for the improvements.

Total Balance to Levy / Total EBU = Levy per EBU
Levy per EBU x Parcel EBU = Parcel Levy Amount

5.4 Assessment Range Formula
Any new or increased assessment requires certain noticing and meeting requirements by law. Prior to the passage of Proposition 218 (California Constitution Articles XIIIC and XIIID), legislative changes in the Brown Act defined a "new or increased assessment" to exclude certain conditions. These conditions included "any assessment that does not exceed an assessment formula or range of assessments previously adopted by the agency or approved by the voters in the area where the assessment is imposed." This definition and conditions were later confirmed through Senate Bill 919 (Proposition 218 implementing legislation). 6/9/26 | Item H2 | Attachment 3

Page 47 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Street and Storm Drain Maintenance District No. 01 (Apple Valley) 15 The purpose of establishing an Assessment Range Formula is to provide for reasonable increases and inflationary adjustment to annual assessments without requiring costly noticing and mailing procedures, which could add to the District costs and assessments. As part of the District formation, the notice and assessment ballots presented to the property owners for approval included a maximum assessment amount for Fiscal Year 2005/2006 (initial maximum assessment), identification of the corresponding maximum assessment rate and a summary of the Assessment Range Formula described herein.

The Assessment Range Formula for this District shall be applied to the future assessments and is generally defined:
 If the proposed annual assessment (levy per EBU) for the upcoming fiscal year is less than or equal to the adjusted Maximum Assessment Rate, then the proposed annual assessment is not considered an increased assessment.
 The Maximum Assessment Rate is equal to the (Initial) Maximum Assessment Rate established for Fiscal Year 2005/2006 adjusted annually by the greater of, three percent (3%) or the annual percentage change in the Consumer Price Index (CPI) of “All Urban Consumers” for the San Francisco-Oakland-San Jose Area from February to February. The Maximum Assessment rate was increased by 3.000% for Fiscal Year 2026/27.

Beginning with Fiscal Year 2006/2007 and each fiscal year thereafter, the Maximum Assessment Rate has been recalculated and a new Maximum Assessment Rate established for the fiscal year utilizing the Assessment Range Formula described above. The Maximum Assessment Rate is calculated independent of the District’s annual budget and proposed assessment. The annual percentage change in CPI is based on available data provided by the U.S. Department of Labor; Bureau of Labor Statistics at the time the annual Report is prepared.

Should the Bureau of Labor Statistics revise such index or discontinue the preparation of such index, the City shall use the revised index or comparable system as approved by the City Council for determining fluctuations in the cost of living. In January 2018, BLS introduced a new geographic area sample for the CPI. As part of the change the index for this area was renamed from San Francisco-Oakland-San Jose to San FranciscoOakland-Hayward. The metropolitan area is comprised of Alameda, Contra Costa, Marin, San Francisco, San Mateo Counties in the State of California. This CPI will be used going forward.

Any proposed annual assessment (rate per EBU) less than or equal to the calculated (adjusted) Maximum Assessment Rate is not considered an increased assessment, even if the proposed assessment is significantly greater than the assessment applied in the prior fiscal year. Likewise, modifications to the method of apportionment that increase the proportional special benefit assigned to a particular land use classification would be considered an increased assessment. Conversely, reductions in the proportional special benefit assigned to a land use classification is permitted. Changes in land use or size of an individual property resulting in an assessment increase, are not considered an increased assessment.

To impose a new or increased assessment other than the annual inflationary adjustment provided by the preceding Assessment Range Formula, the City must comply with the provisions of the California Constitution Article XIIID Section 4c, that requires a public hearing and certain protest procedures including mailed notice of the public hearing and property owner protest balloting. Property owners through the balloting process must approve a proposed new or increased assessment before such an assessment may be imposed.
6/9/26 | Item H2 | Attachment 3

Page 48 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Street and Storm Drain Maintenance District No. 01 (Apple Valley) 15

6. ASSESSMENT DIAGRAM
The parcels within the Street and Storm Drain Maintenance District No. 01 (Apple Valley) consist of the lots, parcels, and subdivisions of land located in the residential development known as Apple Valley, Tract 2495. The District covers approximately twenty-eight acres (27.71 acres) in the northern portion of the City of Atascadero.

The following map is based on the District Diagram, the San Luis Obispo County Assessor’s Maps and the San Luis Obispo County Assessor’s information and identifies the parcels of land within the proposed District, as the same existed at the time the District was formed. The combination of the District Diagram on file with the City Clerk and the Assessment Roll contained in this Report constitute the District Assessment Diagram. 6/9/26 | Item H2 | Attachment 3

Page 49 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Street and Storm Drain Maintenance District No. 01 (Apple Valley) 16

7. ASSESSMENT ROLL
Parcel identification for each lot or parcel within the District is based on the Assessment Diagram presented herein and is based on available parcel maps and property data from the San Luis Obispo County Assessor’s Office at the time the Engineer’s Report was prepared. A listing of the proposed lots and parcels to be assessed within this District along with the assessment amounts is provided herein.

Non-assessable lots or parcels may include but are not limited to public streets and other roadways (typically not assigned an APN by the County); dedicated public easements, open space areas, rights-of-way, common areas; landlocked parcels, small parcels vacated by the County, bifurcated lots, and any other property that cannot be developed or has little or no value. These types of parcels are considered to receive little or no benefit from the improvements and are therefore exempted from assessment.

If any parcel submitted for collection is identified by the County Auditor/Controller to be an invalid parcel number for the fiscal year, a corrected parcel number and/or new parcel numbers will be identified and resubmitted to the County Auditor/Controller. The assessment amount to be levied and collected for the resubmitted parcel or parcels shall be based on the method of apportionment and assessment rate described in this Report as approved by the City Council. Therefore, if a single assessor’s parcel has a status change in development, other land use change, or subdivides into multiple assessor’s parcels, the assessment amounts applied to each of the new assessor’s parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment amount.
6/9/26 | Item H2 | Attachment 3

Page 50 of 250 ends

City of Atascadero
Street & Storm Drain Maintenance No. 1
Final Billing Detail Report for Fiscal Year 2026/27
APN Address Land Use Benefit Units Max Assessment Grand Total 049-192-001 6000 VIA COLONIA CT SFR 1.000 $983.1338 550.00 049-192-002 6010 VIA COLONIA CT SFR 1.000 983.1338 550.00 049-192-003 6020 VIA COLONIA CT SFR 1.000 983.1338 550.00 049-192-004 6030 VIA COLONIA CT SFR 1.000 983.1338 550.00 049-192-005 6040 VIA COLONIA CT SFR 1.000 983.1338 550.00 049-192-006 6050 VIA COLONIA CT SFR 1.000 983.1338 550.00 049-192-007 6060 VIA COLONIA RD SFR 1.000 983.1338 550.00 049-192-008 6055 VIA COLONIA CT SFR 1.000 983.1338 550.00 049-192-009 6045 VIA COLONIA CT SFR 1.000 983.1338 550.00 049-192-010 6035 VIA COLONIA CT SFR 1.000 983.1338 550.00 049-192-011 6025 VIA COLONIA RD SFR 1.000 983.1338 550.00 049-192-012 6015 VIA COLONIA CT SFR 1.000 983.1338 550.00 049-192-013 6005 VIA COLONIA RD SFR 1.000 983.1338 550.00 049-192-014 5045 VIA COLONIA CT SFR 1.000 983.1338 550.00 049-192-015 5035 VIA COLONIA CT SFR 1.000 983.1338 550.00 049-192-016 5025 VIA COLONIA CT SFR 1.000 983.1338 550.00 049-192-017 5015 VIA COLONIA CT SFR 1.000 983.1338 550.00 049-192-018 5005 VIA COLONIA CT SFR 1.000 983.1338 550.00 049-192-019 5010 VIA COLONIA CT SFR 1.000 983.1338 550.00 049-192-020 5020 VIA COLONIA CT SFR 1.000 983.1338 550.00 049-192-021 5030 VIA COLONIA CT SFR 1.000 983.1338 550.00 049-192-022 5040 VIA COLONIA CT SFR 1.000 983.1338 550.00 049-193-001 6100 VIA HUERTO CT SFR 1.000 983.1338 550.00 049-193-002 6120 VIA HUERTO RD SFR 1.000 983.1338 550.00 049-193-003 6130 VIA HUERTO RD SFR 1.000 983.1338 550.00 049-193-004 6140 VIA HUERTO RD SFR 1.000 983.1338 550.00 049-193-005 6150 VIA HUERTO RD SFR 1.000 983.1338 550.00 049-193-006 6160 VIA HUERTO RD SFR 1.000 983.1338 550.00 049-193-007 6170 VIA HUERTO RD SFR 1.000 983.1338 550.00 049-193-008 6180 VIA HUERTO CT SFR 1.000 983.1338 550.00 049-193-010 6200 VIA HUERTO RD SFR 1.000 983.1338 550.00 049-193-011 6210 VIA HUERTO RD SFR 1.000 983.1338 550.00 049-193-012 6220 VIA HUERTO CT SFR 1.000 983.1338 550.00 049-193-013 6225 VIA HUERTO CT SFR 1.000 983.1338 550.00 049-193-014 6215 VIA HUERTO CT SFR 1.000 983.1338 550.00 049-193-015 6205 VIA HUERTO RD SFR 1.000 983.1338 550.00 049-193-016 6195 VIA HUERTO CT SFR 1.000 983.1338 550.00 049-193-017 6185 VIA HUERTO RD SFR 1.000 983.1338 550.00 049-193-018 6125 VIA HUERTO CT SFR 1.000 983.1338 550.00 049-193-019 6115 VIA HUERTO CT SFR 1.000 983.1338 550.00 049-193-020 6105 VIA HUERTO CT SFR 1.000 983.1338 550.00 049-193-021 2180 SAN RAMON RD SFR 1.000 983.1338 550.00 Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 1 of 2 04/08/2026 02:53:13PM 6/9/26 | Item H2 | Attachment 3

Page 51 of 250 ends

City of Atascadero
Street & Storm Drain Maintenance No. 1
Final Billing Detail Report for Fiscal Year 2026/27
APN Address Land Use Benefit Units Max Assessment Grand Total 049-193-022 2190 SAN RAMON RD SFR 1.000 983.1338 550.00 049-193-023 2200 SAN RAMON RD SFR 1.000 983.1338 550.00 049-193-024 2210 SAN RAMON RD SFR 1.000 983.1338 550.00 049-193-025 2220 SAN RAMON RD SFR 1.000 983.1338 550.00 049-193-026 6190 CONEJO RD SFR 1.000 983.1338 550.00
049-193-027 6180 CONEJO RD SFR 1.000 983.1338 550.00
049-193-028 6160 CONEJO RD SFR 1.000 983.1338 550.00
049-193-029 6140 CONEJO RD SFR 1.000 983.1338 550.00
049-193-030 6100 CONEJO RD SFR 1.000 983.1338 550.00
049-193-031 2235 SAN RAMON RD SFR 1.000 983.1338 550.00 049-193-032 2225 SAN RAMON RD SFR 1.000 983.1338 550.00 049-193-033 2215 SAN RAMON RD SFR 1.000 983.1338 550.00 049-193-034 2205 SAN RAMON RD SFR 1.000 983.1338 550.00 049-193-035
2195 AVENIDA
MANZANA RD SFR 1.000 983.1338 550.00
049-193-036
2185 AVENIDA
MANZANA RD SFR 1.000 983.1338 550.00
049-193-037
2175 AVENIDA
MANZANA RD SFR 1.000 983.1338 550.00
049-193-038
2165 AVENIDA
MANZANA RD SFR 1.000 983.1338 550.00
049-193-039
2135 AVENIDA
MANZANA RD SFR 1.000 983.1338 550.00
049-193-040
2125 AVENIDA
MANZANA RD SFR 1.000 983.1338 550.00
049-193-041
2115 AVENIDA
MANZANA RD SFR 1.000 983.1338 550.00
049-193-042
2065 AVENIDA
MANZANA RD SFR 1.000 983.1338 550.00
049-193-043
2055 AVENIDA
MANZANA RD SFR 1.000 983.1338 550.00
049-193-044
2100 AVENIDA
MANZANA RD SFR 1.000 983.1338 550.00
049-193-045
2110 AVENIDA
MANZANA RD SFR 1.000 983.1338 550.00
049-193-046
2140 AVENIDA
MANZANA RD SFR 1.000 983.1338 550.00
049-193-047
2150 AVENIDA
MANZANA RD SFR 1.000 983.1338 550.00
049-193-048
2160 AVENIDA
MANZANA RD SFR 1.000 983.1338 550.00
049-193-051 6190 VIA HUERTO CT SFR 1.000 983.1338 550.00 70 Accounts 70.000 $68,819.3660 38,500.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 2 of 2 04/08/2026 02:53:14PM 6/9/26 | Item H2 | Attachment 3

Page 52 of 250 ends

6/9/26 | Item H2 | Attachment 4

DRAFT RESOLUTION C

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ATASCADERO, CALIFORNIA, APPROVING THE FINAL ENGINEER’S

REPORT REGARDING THE LANDSCAPING AND LIGHTING
DISTRICT NO. 01 (APPLE VALLEY), AND THE LEVY AND

COLLECTION OF ANNUAL ASSESSMENTS RELATED THERETO IN
FISCAL YEAR 2026/2027
WHEREAS, the City Council of the City of Atascadero, California (hereafter referred to as the “City Council”), pursuant to the provisions of Part 2 of Division 15 of the California Streets and Highways Code, did by previous Resolution order the Engineer, NBS, to prepare and file a report in accordance with Article 4 of Chapter 1 of Part 2 of Division 15 of the California Streets and Highways Code, commencing with Section 22500, in connection with the proposed levy for Landscaping and Lighting District No. 01 (Apple Valley) (hereafter referred to as the “District”) and the collection of assessments related thereto for the fiscal year starting July 1, 2026 and ending June 30, 2027; and
WHEREAS, the Engineer has prepared and filed with the City Clerk of the City of Atascadero and the City Clerk has presented to the City Council such report entitled “Engineer’s Annual Levy Report for the Landscaping and Lighting District No. 01 (Apple Valley), fiscal year 2026/2027” (hereafter referred to as the “Engineer’s Report”) in accordance with the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the “Act”); and WHEREAS, the City Council has carefully examined and reviewed the Engineer’s Report as presented and is satisfied with the items and documents as set forth therein, and finds that the levy of assessments has been spread in accordance with the special benefits received from the improvements, operation, maintenance and services to be performed, as set forth in said Engineer’s Report.

NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Atascadero:

SECTION 1. The above recitals are true and correct.

Page 53 of 250 ends

6/9/26 | Item H2 | Attachment 4
c) The Budget that outlines the costs and expenses to service and maintain the improvements including incidental expenses authorized by the Act to operate the District. d) An Assessment Diagram that identifies the boundaries of the District. e) An Assessment Roll containing each of the Assessor’s Parcel Numbers that comprise the District and the proportional maximum assessment and annual assessment for fiscal year 2026/2027.

SECTION 3. The Engineer’s Report as presented, is hereby approved, and is ordered to be filed in the Office of the City Clerk as a permanent record and to remain open to public inspection.

SECTION 4. The City Clerk shall certify to the passage and adoption of this Resolution and the minutes of this meeting shall so reflect the adoption and approval of the Engineer’s Report.

PASSED AND ADOPTED at a regular meeting of the City Council held on the 9 th day of
June, 2026.

On motion by Council Member ______ and seconded by Council Member _______, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

CITY OF ATASCADERO:
________________________________
Charles Bourbeau, Mayor
ATTEST:

Lara K. Henderson, City Clerk

Page 54 of 250 ends

6/9/26 | Item H2 | Attachment 5

DRAFT RESOLUTION D

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ATASCADERO, CALIFORNIA, ORDERING THE LEVY AND
COLLECTION OF ASSESSMENTS FOR FISCAL YEAR 2026/2027 FOR LANDSCAPING AND LIGHTING DISTRICT NO. 01 (APPLE VALLEY) WHEREAS, the City Council of the City of Atascadero, California (hereafter referred to as City Council) has by previous Resolutions initiated proceedings and declared its intention to levy special benefit assessments against parcels of land within the Landscaping and Lighting District No. 01 (Apple Valley) (hereafter referred to as the “District”) for fiscal year 2026/2027, said fiscal year commencing July 1, 2026 and ending June 30, 2027; pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code, commencing with Section 22500 (hereinafter referred to as the "Act") to pay the costs and expenses of operation, maintenance, repair and servicing of local landscaping, street lighting and appurtenant facilities related thereto; and
WHEREAS, the Engineer selected by the City Council has prepared and filed with the City Clerk, and the City Clerk has presented to the City Council an Engineer’s Report in connection with the proposed levy of special benefit assessments upon eligible parcels of land within the District, and the City Council did by previous Resolution adopt and approve said Engineer’s Report; and WHEREAS, the City Council desires to levy and collect assessments against parcels of land within the District for the fiscal year commencing July 1, 2026 and ending June 30, 2027, to pay the costs and expenses of operation, maintenance, repair and servicing of local landscaping, street lighting, and appurtenant facilities related thereto; and WHEREAS, the City and its legal counsel have reviewed Proposition 218 and found that these assessments comply with applicable provisions of Section XIIID of the California State Constitution.

NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Atascadero:

SECTION 1. Following notice duly given, the City Council has held a full and fair Public Hearing regarding its Resolution approving the Engineer’s Report prepared in connection with the levy and collection of assessments, and considered the oral and written statements, protests and communications made or filed by interested persons.

Page 55 of 250 ends

6/9/26 | Item H2 | Attachment 5
b) The net amount to be assessed upon the lands within the District is in accordance and apportioned by a formula and method which fairly distributes the net amount among the eligible parcels in proportion to the special benefit to be received by each parcel from the improvements and services for the fiscal year commencing July 1, 2026, and ending June 30, 2027.

SECTION 3. The City Council hereby orders the proposed improvements to be made, which improvements are briefly described as the maintenance, operation, administration and servicing of the improvements that may include, but is not limited to local street lights, landscaping, parks and open space areas within the District and appurtenant facilities related thereto.

SECTION 5. The City shall deposit the money representing assessments collected by the County for the District to the credit of a fund for the Landscaping and Lighting District No. 01 (Apple Valley), and such money shall be expended for the maintenance, operation and servicing of the improvements as described in the Engineers Report and generally described in Section 3 of this Resolution.

SECTION 6. The adoption of this Resolution constitutes the levy of assessments for the fiscal year commencing July 1, 2026, and ending June 30, 2027.

SECTION 7. The City Clerk or their designee is hereby authorized and directed to file the levy with the County Auditor, per Sections 22645-22647 of the Act, upon adoption of this Resolution.

PASSED AND ADOPTED at a regular meeting of the City Council held on the 9 th day of
June, 2026.

On motion by Council Member ______ and seconded by Council Member _______, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

CITY OF ATASCADERO:
________________________________
Charles Bourbeau, Mayor
ATTEST:

Lara K. Henderson, City Clerk

Page 56 of 250 ends

Fiscal Year 2026/27 Engineer’s Report For:

Landscaping and Lighting District
District No. 01 (Apple Valley)
May 2026
6/9/26 | Item H2 | Attachment 6

Page 57 of 250 ends

CITY OF ATASCADERO
Landscaping & Lighting District No. 01
(Apple Valley)

6500 Palma Avenue
Atascadero, CA 93422
Phone – (805) 461-5000
Fax – (805) 461-7612

CITY COUNCIL
Charles Bourbeau, Mayor
Mark Dariz, Mayor Pro Tem
Susan Funk, Council Member
Seth Peek, Council Member
Heather Newsom, Council Member

Page 58 of 250 ends

TABLE OF CONTENTS

1. Engineer’s Letter ............................................................................................................. 1

2. Executive Summary ........................................................................................................ 2

3. Plans and Specifications .................................................................................................. 4

3.1 Description of the District ....................................................................................... 4

3.2 Improvements and Services Authorized by the 1972 Act ....................................... 4

3.3 Description of Improvements and Services ............................................................ 5

4. Estimate of Costs ............................................................................................................ 7

5. Method of Assessment ................................................................................................... 8

5.1 General .................................................................................................................... 8

5.2 Benefit Analysis ....................................................................................................... 8

5.3 Assessment Methodology ....................................................................................... 9

5.4 Assessment Range Formula .................................................................................. 13

6. Assessment Diagram ..................................................................................................... 15

7. Assessment Roll ............................................................................................................ 16 6/9/26 | Item H2 | Attachment 6

Page 59 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Lighting and Landscaping District No. 01 (Apple Valley) 1

1. ENGINEER’S LETTER
WHEREAS, on March 24, 2005 by Resolution No. 2005-045, the City Council of the City of Atascadero (the “City”), State of California, in accordance with and pursuant to the Landscape and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500 (the “1972 Act”) established the City of Atascadero Landscaping and Lighting District No. 01 (Apple Valley) (the “District”); and
WHEREAS, on May 12, 2026, the City Council, under the 1972 Act, adopted its Resolution Initiating Proceedings for the Annual Levy of Assessments and Ordering the Preparation of an Engineer’s Report for the District; and
WHEREAS, the Resolution Initiating Proceedings directed NBS to prepare and file a report describing the general nature, location, and extent of the improvements to be maintained; an estimate of the costs of the maintenance, operations, and servicing of the improvements for the District for the referenced fiscal year; a diagram for the District, showing the area and properties to be assessed; and an assessment of the estimated costs of the administration, maintenance, operations, and servicing the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received.

FY 2026/27 Budget Summary
Description
Total
Costs
Costs Not
Assessed
Proposed
Assessment
Total
Benefit
Units
Maximum
Rate
Proposed
Rate
Per BU
Annual Maintenance $67,420 ($10,170) $57,250
Special Annual Projects 15,710 0 15,710
Administration 7,990 0 7,990
Capital Reserve Collections/(Uses) 5,491 (650) 4,841
Levy Adjustments (22,791) 0 (25,181)
Total $73,820 ($10,820) $63,000 70 $2,148.45 $900.00
I, the undersigned, respectfully submit the enclosed Engineer’s Report and, to the best of my knowledge, information, and belief, the Engineer’s Report, Assessments, and the Assessment Diagram herein have been prepared, computed, and levied in accordance with the assessment methodology adopted, approved, and ordered by the City Council of the City of Atascadero and the 1972 Act.

City Engineer
6/9/26 | Item H2 | Attachment 6

Page 60 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Lighting and Landscaping District No. 01 (Apple Valley) 2

2. EXECUTIVE SUMMARY
Pursuant to the provisions of the Landscaping and Lighting Act of 1972, being Part 2 of Division 15 of the California Streets and Highways Code, commencing with Section 22500 (hereafter referred to as the “1972 Act”), and in compliance with the substantive and procedural requirements of the California State Constitution Article XIIID (hereafter referred to as “Article XIIID”), the City Council of the City of Atascadero, County of San Luis Obispo, State of California (hereafter referred to as “City”), executed the proceedings required for the establishment of the special benefit assessment district designated as:

Landscaping and Lighting District No. 01 (Apple Valley) (hereafter referred to as the “District”), which includes the lots and parcels of land within the residential subdivision known as Apple Valley, Tract 2495 within the City limits of the City. This Engineer’s Report (hereafter referred to as the “Report”) has been prepared in connection with the levy and collection of annual assessments related thereto for Fiscal Year 2026/27, as required pursuant to Chapter 1, Article 4 of the 1972 Act.

The City Council formed the District and provided for the levy and collection of annual assessments on the County tax rolls to provide ongoing funding for the costs and expenses required to service and maintain the landscaping and lighting improvements associated with and resulting from the development of properties within the District. The improvements to be provided by the District and the assessments described herein are made pursuant to the 1972 Act and the substantive and procedural provisions of Article XIIID.

This Report describes the District, the improvements, and the proposed assessments to be levied against properties in connection with the special benefits the properties will receive from the maintenance and servicing of the District improvements. The annual assessments will provide a funding source for the continued operation and maintenance of public landscaping and lighting improvements installed in connection with the development of properties within the District.

The improvements and assessments described in this Report are based on the planned development of properties within the District and represent an estimate of the direct expenditures, incidental expenses, and fund balances that will be necessary to maintain and service the improvements. The boundaries of the District, the proposed improvements, the method of apportionment, and assessments described herein are based on current development plans and specifications for Tract 2495; and by reference these plans and specifications are made part of this Report.

As part of the District formation, the City of Atascadero conducted a Property Owner Protest Ballot proceeding for the proposed levy of a new assessment pursuant to the provisions of the California Constitution, Article XIIID Section 4. In conjunction with this ballot proceeding, the City Council conducted a noticed public hearing on May 24, 2005 to consider public testimonies, comments and written protests regarding the formation of the District and levy of assessments. Upon conclusion of the public hearing, 6/9/26 | Item H2 | Attachment 6

Page 61 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Lighting and Landscaping District No. 01 (Apple Valley) 3 property owner protest ballots received were opened and tabulated to determine whether majority protest existed (ballots were weighted based on assessment amounts), and by resolution the City Council confirmed the results of the ballot tabulation. Tabulation of the ballots indicated that majority protest did not exist for the proposed assessments and the assessment range formula presented and described herein, the City Council approved the Report (as submitted or amended), ordered the formation of the District, and approved the levy and collection of assessments. The assessments for Fiscal Year 2005/2006 were submitted to the San Luis Obispo County Auditor/Controller for inclusion on the property tax roll for each parcel.

Each subsequent fiscal year, an Engineer’s Report shall be prepared and presented to the City Council describing the District any changes to the District or improvements and the proposed budget and assessments for that fiscal year and the City Council shall hold a noticed public hearing regarding these matters prior to approving and ordering the proposed levy of assessments. If the proposed assessments for the District exceed the maximum assessment described herein (as approved by the property owners), the new or increased assessment must be confirmed through another property owner protest ballot proceeding before such an assessment may be imposed. It should be noted that an increased assessment to an individual property resulting from changes in development or land use does not constitute an increased assessment.
6/9/26 | Item H2 | Attachment 6

Page 62 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Lighting and Landscaping District No. 01 (Apple Valley) 4

3. PLANS AND SPECIFICATIONS

3.1 Description of the District
The territory within the District consists of the lots, parcels and subdivisions of land within the proposed residential subdivision known as the Apple Valley, Tract 2495, which encompasses an area of land totaling approximately twenty-eight acres (27.71 acres).

This residential subdivision includes seventy (70) single-family residential homes. The subdivision is situated in the northern portion of the City of Atascadero just southwest of Highway 101 and is generally located:
 South of Del Rio Road;
 North of Conejo Road;
 West of Ramona Road; and,
 East of Graves Creek

3.2 Improvements and Services Authorized by the 1972 Act As generally defined by the 1972 Act and applicable to this District, the improvements and associated assessments may include one or more of the following:
1) The installation or planting of landscaping;
2) The installation or construction of statuary, fountains, and other ornamental structures and facilities; 3) The installation or construction of public lighting facilities including, but not limited to street lights and traffic signals;
4) The installation or construction of any facilities which are appurtenant to any of the foregoing or which are necessary or convenient for the maintenance or servicing thereof; 5) The installation of park or recreational improvements, including, but not limited to, all of the following:
a) Land preparation, such as grading, leveling, cutting and filling, sod, landscaping, irrigation systems, sidewalks, and drainage.
b) Lights, playground equipment, play courts, and public restrooms. 6) The acquisition of land for park, recreational, or open-space purposes or any existing improvement otherwise authorized pursuant to this section.
7) The maintenance or servicing, of any of the foregoing including the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement including but not limited to:
a) Repair, removal, or replacement of all or any part of any improvements; b) Grading, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities; c) Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; 6/9/26 | Item H2 | Attachment 6

Page 63 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Lighting and Landscaping District No. 01 (Apple Valley) 5 d) The removal of trimmings, rubbish, debris, and other solid waste; e) The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti;
f) Electric current or energy, gas, or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements; g) Water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other improvements.
8) Incidental expenses associated with the improvements including, but not limited to:
a) The cost of preparation of the report, including plans, specifications, estimates, diagram, and assessment;
b) The costs of printing, advertising, and the publishing, posting and mailing of notices; c) Compensation payable to the County for collection of assessments; d) Compensation of any engineer or attorney employed to render services; e) Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements;
f) Costs associated with any elections held for the approval of a new or increased assessment.

3.3 Description of Improvements and Services
The purpose of this District is to ensure the ongoing maintenance, operation and servicing of local landscaping and street lighting improvements established or installed in connection with development of properties within the District. The improvements may consist of all or a portion of the public landscaped areas, street lighting and appurtenant facilities within and adjacent to the District (Tract 2495). These improvements generally include, but are not limited to the materials, equipment, utilities, labor, appurtenant facilities and expenses necessary for the ongoing maintenance and operation of public street lighting as well as landscaped parkways, medians, slopes, trails, park areas, drainage basins, open space areas and other designated easements or rights-of-way constructed and installed as part of the development plans and agreements approved for the development of each lot and parcel within the District. The improvements to be maintained and funded entirely or partially through the District assessments are generally described as:
 Streetscape landscaping including street trees located on the perimeter of the development and interior streets of Tract 2495 that are within the public rights-of-way or easements and dedicated to the City for maintenance;
 Open space areas and fuel modification areas within or adjacent to the District boundaries;  Park areas, recreational equipment, trails and landscaped drainage facilities developed and constructed as part of developing properties within Tract 2495;  Public lighting facilities including street lighting, safety lighting and ornamental lighting installed as part of the residential development or landscaped improvement areas;  Appurtenant facilities, equipment, materials and utilities related to the aforementioned improvements;
 Specifically not included as District improvements are those improvements located on private property, improvements and facilities that may be provided or maintained by an agency other than the City; improvements and facilities that may be provide by another assessment or tax 6/9/26 | Item H2 | Attachment 6

Page 64 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Lighting and Landscaping District No. 01 (Apple Valley) 6 levied by the City or any improvement provided and maintained by a Homeowner’s Association or similar entity.

Those portions of the District improvements that may be identified as general benefit or will be funded in whole or in part by other revenue sources as part of the approved development agreements, will not be included as part of the District assessments. The net annual cost to provide and maintain the improvements determined to be of special benefit shall be allocated to each property in proportion to the special benefits received.

3.3.1 LANDSCAPE IMPROVEMENTS
The landscape improvements for the District may include, but are not limited to turf, ground cover, shrubs and plants, trees, irrigation and drainage systems, ornamental lighting, masonry walls or other fencing, hardscape improvements, monuments, and associated appurtenant facilities located within the landscape easements or public rights-of-way. Specifically the landscape improvement areas for this District are identified as:
 Approximately 30,580 square feet of streetscape (parkway) landscaping within the public rights-ofway located on the perimeter of the development (south side of Del Rio Road); and along various locations of the interior streets including Via Colonia Court, San Ramon Road, Via Huerto Court, Avenida Manzana, and San Ramon Road.
 Approximately 108 street trees located along Del Rio Road, Via Colonia Court, San Ramon Road, Via Huerto Court, Avenida Manzana, San Ramon Road and Conejo Road;  Approximately 12,541 square feet of landscaping and trees within the median islands on San Ramon Road located at the two entryways to the development (Del Rio Road and Conejo Road);  Approximately 106,460 square feet of non-irrigated open space area within the District;  Approximately 109,837 square feet of irrigated park and open space areas within the boundaries of the District including 56,647 square feet of turf; 40,335 square feet of irrigated open space; and 12,855 square feet of landscaped slopes within two drainage basins (6,690 and 6,165 square feet respectively); along with various trees and picnic areas;  Approximately 10,320 square feet of paths and trails, 25,394 square feet sidewalks and 5,145 linear feet of fencing within and adjacent to the various landscape improvement areas.

3.3.2 PUBLIC LIGHTING IMPROVEMENTS
The lighting improvements may include but are not limited to the cost of providing electrical energy and servicing of lighting fixtures, poles, meters, conduits, electrical cable and associated appurtenant facilities associated with:
 Lighting facilities located within the landscaped areas including safety lights, security lights or ornamental lights installed as part of the District improvements. 6/9/26 | Item H2 | Attachment 6

Page 65 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Lighting and Landscaping District No. 01 (Apple Valley) 7

4. ESTIMATE OF COSTS
Total Costs Not 2026/27
BUDGET Budget Assessed Assessment

DIRECT COSTS
Annual Costs
Landscape Services $45,900 ($6,550) $39,350
Landscape Supplies 1,120 0 1,120
Landscape Utilities 14,480 (3,620) 10,860
City Landscape Services 3,880 0 3,880
Infrastructure Improvements 2,040 0 2,040
Total Annual Direct Costs 67,420 ($10,170) $57,250

CAPITAL EXPENDITURES
Special Projects $15,710 $0 $15,710
Total Annual Special Projects $15,710 $0 $15,710

ADMINISTRATION EXPENSES
Annual Administration Expenses
City Annual Administration $2,280 $0 $2,280
Engineer's Report & Services 5,360 0 5,360
Public Noticing 350 0 350
Total Administration $7,990 $0 $7,990
TOTAL DIRECT & ADMINISTRATION COSTS $91,120 ($10,170) $80,950

CAPITAL RESERVE COLLECTIONS/(USES)
Landscape Rehabilitation/Replacement $1,300 ($650) $650 Median Rehabilitation/Replacement 238 0 238
Open Space Rehabilitation/Replacement 1,120 0 1,120
Tree Rehabilitation/Replacement 2,033 0 2,033
Other Rehabilitation/Replacement 800 0 800
Total Annual Capital Reserve Collections/(Uses) $5,491 ($650) $4,841

LEVY ADJUSTMENTS
Interest Income - Improvement Fund ($2,902) $0 ($2,902) Interest Income - Operating Reserve Fund (1,219) 0 (1,219) Contributions from other Sources (10,820) 0 (10,820)
Reserve Collection/(Use) (7,850) 0 (7,850)
Total Levy Adjustments ($22,791) 0 ($22,791)
BALANCE TO LEVY $73,820 ($10,820) $63,000

DISTRICT STATISTICS
Total Parcels 74
Parcels Levied 70
Total EBU (1) 70
Levy per EBU $900.00
Maximum Levy per EBU $2,148.45

FUND BALANCE INFORMATION
Beginning Operating Reserve Balance $47,891
Operational Reserve Interest 1,219
Surplus Transfer from Improvement Fund 29,352
Operational Reserve Collection (Use) (22,791)
Estimated Ending Operating Reserve Balance $55,671
Beginning Improvement Fund Balance $153,629
Improvement Fund Interest 2,902
Surplus Transfer to Operations Fund (29,352)
Improvement Fund Collection/(Use) 5,491
Estimated Ending Improvement Fund Balance $132,670
(1) Levy per EBU rate does not include the County of San Luis Obispo fee of $2.00 per parcel 6/9/26 | Item H2 | Attachment 6

Page 66 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Lighting and Landscaping District No. 01 (Apple Valley) 8

5. METHOD OF ASSESSMENT

5.1 General
The 1972 Act permits the establishment of assessment districts by agencies for the purpose of providing certain public improvements, which include the construction, maintenance, and servicing of public lights, landscaping and appurtenant facilities. The 1972 Act further requires that the cost of these improvements be levied according to benefit rather than assessed value:
“The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.”
The method of apportionment described in this Report for allocation of special benefit assessments utilizes commonly accepted engineering practices and have been established pursuant to the 1972 Act and the provisions of Article XIIID. The formulas used for calculating assessments reflects the composition of parcels within the District and the improvements and services provided, to fairly apportion the costs based on the special benefits to each parcel.

5.2 Benefit Analysis
Each of the proposed improvements, the associated costs and assessments have been carefully reviewed, identified and allocated based on special benefit pursuant to the provisions of the 1972 Act and Article XIIID. The improvements provided by this District and for which properties will be assessed have been identified as necessary, required and/or desired for the orderly development of the properties within the District to their full potential, consistent with the development plans and applicable portions of the City General Plan. As such, these improvements would be necessary and required of individual property owners for the development of such properties and the ongoing operation, servicing and maintenance of these improvements would be the financial obligation of those properties. Therefore, the improvements and the annual costs of ensuring the maintenance and operation of the improvements are a distinct and special benefit to the properties within the District. Any improvement or portion thereof that is considered to be of general benefit shall be funded by other revenue sources and not included as part of the special benefit assessments allocated to properties within the District.

5.2.1 SPECIAL BENEFIT
The method of apportionment (method of assessment) established herein is based on the premise that each assessed parcel within the District receives special benefits from the improvements and the desirability and security of those properties is enhanced by the presence of public lighting and well-maintained landscaping in close proximity to those properties
The special benefits associated with landscape improvements are specifically:
 Enhanced desirability of properties through association with the improvements.  Improved aesthetic appeal of properties providing a positive representation of the area and properties.
6/9/26 | Item H2 | Attachment 6

Page 67 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Lighting and Landscaping District No. 01 (Apple Valley) 9  Enhanced adaptation of the urban environment within the natural environment from adequate green space and landscaping.
 Environmental enhancement through improved erosion resistance, dust and debris control, and fire prevention.
 Increased sense of pride in ownership of property within the District resulting from wellmaintained improvements associated with the properties.  Enhanced quality of life through well-maintained green space and landscaped areas.  Reduced criminal activity and property-related crimes (especially vandalism) against properties in the District through well-maintained surroundings and amenities including abatement of graffiti.  Enhanced environmental quality of the parcels by moderating temperatures, providing oxygenation and attenuating noise.

The special benefits of street lighting and other public lighting facilities are the convenience, safety, and security of property, improvements, and goods. Specifically:
 Enhanced deterrence of crime and the aid to police protection.  Increased nighttime safety on roads, streets and public areas.  Improved ability of pedestrians and motorists to see.  Improved ingress and egress to property.
 Reduced vandalism and other criminal act and damage to improvements or property.  Improved traffic circulation and reduced nighttime accidents and personal property loss.

The preceding special benefits contribute to the esthetic value and desirability of each of the assessed parcels within the District and thereby provide a special enhancement of the properties. Furthermore, it has been determined that the lack of funding to properly service and maintain the District improvements would have a negative impact on the properties within the District.

5.2.2 GENERAL BENEFIT
In reviewing each of the District improvements, the proximity of those improvements to both properties within the District and those outside the District as well as the reasons for installing and constructing such improvements, it is evident that the improvements are solely the result of developing properties within the District and the ongoing maintenance and operation of these improvements will directly affect the properties within the District. Although the improvements include public areas, easements, rights-ofway and other amenities available or visible to the public at large, the construction and installation of these improvements were only necessary for the development of properties within the District and were not required nor necessarily desired by any properties or developments outside the District boundary and any public access or use of the improvements by others is incidental. Therefore, it has been determined that the improvements and the ongoing maintenance, servicing and operation of those improvements provide no measurable general benefit to properties outside the District or to the public at large, but clearly provide distinct and special benefits to properties within the District.

5.3 Assessment Methodology
The method of apportionment for the District calculates the receipt of special benefit from the respective improvements based on the actual or proposed land use of the parcels within the District. The special 6/9/26 | Item H2 | Attachment 6

Page 68 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Lighting and Landscaping District No. 01 (Apple Valley) 10 benefit received by each lot or parcel is equated to the overall land use of parcels within the District based on the parcel’s actual land use or proposed development.

The costs associated with the improvements shall be fairly distributed among the parcels based upon the special benefit received by each parcel. Additionally, in compliance with the Article XIIID Section 4, each parcel’s assessment may not exceed the reasonable cost of the proportional special benefit conferred to that parcel. The benefit formula used to determine the assessment obligation is therefore based upon both the improvements that benefit the parcels within the District as well as the proposed land use of each property as compared to other parcels that benefit from those specific improvements.

To identify and determine the special benefit to be received by each parcel and their proportionate share of the improvement costs it is necessary to consider the entire scope of the planned improvements as well as individual property development within the District. Upon review of the proposed improvements it has been determined that each of the residential parcels within the District receives special benefits from the improvements to be funded by annual assessments and based on the planned property development a single zone of benefit is appropriate for the allocation of the assessments and proportional benefit.

5.3.1 EQUIVALENT BENEFIT UNITS:

A single-family home site equals one Equivalent Benefit Unit (EBU) and the other land uses are converted to a weighted EBU based on an assessment formula that equates the property’s specific development status, type of development (land use), and size of the property, as compared to a single- family home site.

Although the Equivalent Benefit Unit method of apportioning special benefit is most commonly used and applied to districts that have a wide range of land use classifications (residential and non-residential use), this District is comprised of only residential properties and the following apportionment analysis of special benefit addresses only residential land uses. Not all land use types described in the following are necessarily applicable to the development of properties within this District, but are presented for comparison purposes to support the proportional special benefit applied to those land use types within the District.

Equivalent Benefit Unit “EBU”).
(2) Multi-family Residential — This land use is defined as a fully subdivided residential parcel that has more than one residential unit developed on the property. (This land use typically includes apartments, duplexes, triplex etc., but does not generally include condominiums, town-homes or mobile home parks). Based on average population densities and size of the structure as compared to a typical single-family residential unit, multi-family residential parcels shall be proportionately 6/9/26 | Item H2 | Attachment 6

Page 69 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Lighting and Landscaping District No. 01 (Apple Valley) 11 assessed for the parcel’s total number of residential units utilizing a sliding benefit scale. Although multi-family properties typically receive similar benefits to that of a single-family residential, it would not be reasonable to conclude that on a per unit basis, the benefits are equal. Studies have consistently shown that the average multi-family unit impacts infrastructure approximately 75% as much as a single-family residence (Sample Sources: Institute of Transportation Engineers Informational Report Trip Generation, Fifth Edition; Metcalf and Eddy, Wastewater Engineering Treatment, Disposal, Reuse, Third Edition). These various studies indicate that most public improvements and infrastructure are utilized and impacted at reduced levels by multi-family residential units and a similar reduction in proportional benefit is appropriate. Furthermore, it is also reasonable to conclude that as the density (number of units) increases the proportional benefit per unit tends to decline because the unit size and people per unit usually decreases.

Based on these considerations and the improvements provided by this District, an appropriate allocation of special benefit for multi-family residential properties as compared to a single- family residential is best represented by the following special benefit assignment: 0.75 EBU per unit for the first 50 units; 0.50 EBU per unit for units 51 through 100; and 0.25 EBU per unit for remaining units.
(3) Condominium/Town-home Units — Condominiums and town-homes tend to share attributes of both single-family residential and multi-family residential properties and for this reason are identified as a separate land use classification. Like most single-family residential properties, these properties are not usually considered rental property and generally, the County assigns each unit a separate APN or assessment number. However, condominiums and town-homes often have similarities to multi-family residential properties in that they are generally zoned medium to high density and in some cases may involve multiple units on a single APN. In consideration of these factors, it has been determined that an appropriate allocation of special benefit for condominiums, town-homes and similar residential properties is best represented by an assignment of 0.75 EBU per unit regardless of whether each unit is assigned an individual APN or there are multiple units assigned to an APN. (There is no adjustment for parcels with more than five units). (4) Planned-Residential Development — This land use is defined as any property for which a tentative or final tract map has been filed and approved (a specific number of residential lots and units has been identified) and the property is expected to be subdivided within the fiscal year or is part of the overall improvement and development plan for the District. This land use classification often times involves more than a single parcel (e.g. the approved tract map encompasses more than a single APN). Each parcel that is part of the approved tract map shall be assessed proportionately for the proposed or estimated residential type and units to be developed on that parcel as part of the approved tract map. Accordingly, each parcel is assigned an appropriate number of benefit units that reflects the development of that property at build-out. (The EBU assigned to each parcel shall represent the combination of single-family, condominium, multi-family units to be developed).
(5) Vacant Residential — This land use is defined as property currently zoned for residential development, but a tentative or final tract map for the property has not yet been approved. Based upon the opinions of professional appraisers who appraise market property values for real estate in California, the land value portion of a property typically ranges from 20 to 30 percent 6/9/26 | Item H2 | Attachment 6

Page 70 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Lighting and Landscaping District No. 01 (Apple Valley) 12 of the total value of a developed residential property (the average is about 25 percent). Although the assessed value of an individual property is not a direct reflection of the property’s special benefit, this general correlation between land value and structure value does provide a reasonable basis for apportioning special benefit for vacant residential properties. Utilizing this twenty-five percent (25%) apportionment and the number of single-family residential units typically developed per acre of land (an average of 4 residential units per acre) an Equivalent Benefit Unit of 1.00 EBU per acre (4 units per acre x 25%) is derived and presents an appropriate apportionment of special benefit for vacant residential properties. Recognizing that the full and timely utilization of vacant property is reduced as the size of the property increases, it has been determined that the maximum EBU assigned to a vacant residential parcel shall not exceed 25.00 EBU (parcels in excess of 25 acres are assigned 25.00 EBU). Parcels less than one acre, shall be assigned a minimum of 1.00 EBU (similar to a vacant lot within a residential tract). (6) Exempt Parcels — This land use identifies properties that are not assessed and are assigned 0.00 EBU. This land use classification may include but is not limited to:
 Lots or parcels identified as public streets and other roadways (typically not assigned an APN by the County);
 Dedicated public easements including open space areas, utility rights-of- way, greenbelts, parkways, parks or other publicly owned properties that are part of the District improvements or may provide other benefits to private properties within the District;  Private properties that cannot be developed independently from an adjacent property, such as common areas, sliver parcels or bifurcated lots or properties with very restrictive development use;
These types of parcels are considered to receive little or no benefit from the improvements and are therefore exempted from assessment but shall be reviewed annually by the assessment engineer to confirm the parcels’ current development status. Government owned properties or public properties are not necessarily exempt properties and shall be subject to special benefit assessment unless it qualifies for an exempt status.
(7) Special Cases — In many districts where multiple land use classifications are involved, there are usually one or more properties for which the standard land use classifications do not accurately identify the special benefits received from the improvements. For example, a parcel may be identified as a Vacant Residential property, however only a small percentage of the parcel’s total acreage can actually be developed. In this case, an appropriate calculation would be based on the net acreage that can be utilized rather than the gross acreage of the parcel.

6/9/26 | Item H2 | Attachment 6

Page 71 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Lighting and Landscaping District No. 01 (Apple Valley) 13 The following table provides a summary of land use classifications and the Equivalent Benefit Unit calculations previously outlined.

Property Type
Equivalent
Benefit Units Multiplier
Single-family Residential 1.00 Per Unit/Lot/Parcel
Multi-family Residential

0.75 Per Unit for the First 50 Units

0.50 Per Unit for Units 51-100

0.25 Per Unit for all Remaining Units
Condominium/Townhome Units 0.75 Per Unit
Planned Residential
Development

1.00 Per Planned SF Residential Lot

0.75 Per Planned Condominium

0.75 Per Unit for the First 50 Units

0.50 Per Unit for Units 51-100

0.25 Per Unit for all Remaining Units
Vacant Residential Land 1.00 Per Acre
Exempt Parcels 0.00 Per Parcel
The following formula is used to calculate each parcel’s EBU (proportional benefit).

Total Balance to Levy / Total EBU = Levy per EBU
Levy per EBU x Parcel EBU = Parcel Levy Amount

The purpose of establishing an Assessment Range Formula is to provide for reasonable increases and inflationary adjustment to annual assessments without requiring costly noticing and mailing procedures, which could add to the District costs and assessments. As part of the District formation, the notice and assessment ballots presented to the property owners for approval included a maximum assessment 6/9/26 | Item H2 | Attachment 6

Page 72 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Lighting and Landscaping District No. 01 (Apple Valley) 14 amount for Fiscal Year 2005/2006 (initial maximum assessment), identification of the corresponding maximum assessment rate and a summary of the Assessment Range Formula described herein.

The Assessment Range Formula for this District shall be applied to future assessments and is generally defined:
 If the proposed annual assessment (levy per EBU) for the upcoming fiscal year is less than or equal to the adjusted Maximum Assessment Rate, then the proposed annual assessment is not considered an increased assessment.
 The Maximum Assessment Rate is equal to the (Initial) Maximum Assessment Rate established for Fiscal Year 2005/2006 adjusted annually by the greater of, three percent (3%) or the annual percentage change in the Consumer Price Index (CPI) of “All Urban Consumers” for the San Francisco-Oakland-Hayward Area from February to February. The Maximum Assessment rate was increased by 3.000% for Fiscal Year 2026/27.

Beginning with Fiscal Year 2006/2007 and each fiscal year thereafter, the Maximum Assessment Rate has been recalculated and a new Maximum Assessment Rate is established for the fiscal year utilizing the Assessment Range Formula described above. The Maximum Assessment Rate is calculated independent of the District’s annual budget and proposed assessment. The annual percentage change in CPI is based on available data provided by the U.S. Department of Labor; Bureau of Labor Statistics at the time the annual Report is prepared. Should the Bureau of Labor Statistics revise such index or discontinue the preparation of such index, the City shall use the revised index or comparable system as approved by the City Council for determining fluctuations in the cost of living. In January 2018, BLS introduced a new geographic area sample for the CPI. As part of the change the index for this area was renamed from San Francisco-Oakland-San Jose to San Francisco-Oakland-Hayward. The metropolitan area is comprised of Alameda, Contra Costa, Marin, San Francisco, San Mateo Counties in the State of California. This CPI will be used going forward.

Any proposed annual assessment (rate per EBU) less than or equal to the calculated (adjusted) Maximum Assessment Rate is not considered an increased assessment, even if the proposed assessment is significantly greater than the assessment applied in the prior fiscal year. Likewise, modifications to the method of apportionment that increase the proportional special benefit assigned to a particular land use classification would be considered an increased assessment. Conversely, reductions in the proportional special benefit assigned to a land use classifications are permitted. Changes in land use or size of an individual property resulting in an assessment increase, is not considered an increased assessment.

To impose a new or increased assessment other than the annual inflationary adjustment provided by the preceding Assessment Range Formula, the City must comply with the provisions of Article XIIID Section 4c, that requires a public hearing and certain protest procedures including mailed notice of the public hearing and property owner protest balloting. Property owners through the balloting process must approve a proposed new or increased assessment before such an assessment may be imposed. 6/9/26 | Item H2 | Attachment 6

Page 73 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Lighting and Landscaping District No. 01 (Apple Valley) 15

6. ASSESSMENT DIAGRAM
The parcels within the Landscaping and Lighting District No. 01 (Apple Valley) consist of the lots, parcels and subdivisions of land located in the planned residential development known as Apple Valley, Tract 2495. The District covers approximately twenty-eight acres (27.71 acres) in the northern portion of the City of Atascadero.

Page 74 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Lighting and Landscaping District No. 01 (Apple Valley) 16

7. ASSESSMENT ROLL
Parcel identification for each lot or parcel within the District is based on the Assessment Diagram presented herein and is based on available parcel maps and property data from the San Luis Obispo County Assessor’s Office at the time the Engineer’s Report was prepared. A listing of the lots and parcels to be assessed within this District along with the assessment amounts is provided herein.

Non-assessable lots or parcels may include, but are not limited to public streets and other roadways (typically not assigned an APN by the County); dedicated public easements, open space areas, rights-of-way, common areas; landlocked parcels, small parcels vacated by the County, bifurcated lots, and any other property that cannot be developed or has little or no value. These types of parcels are considered to receive little or no benefit from the improvements and are therefore exempted from assessment.

Page 75 of 250 ends

City of Atascadero
Landscaping & Lighting Maint Dist No. 1
Final Billing Detail Report for Fiscal Year 2026/27
APN Address Land Use Benefit Units Max Assessment Grand Total 049-192-001 6000 VIA COLONIA CT SFR 1.000 $2,148.45 $900.00 049-192-002 6010 VIA COLONIA CT SFR 1.000 2,148.45 900.00 049-192-003 6020 VIA COLONIA CT SFR 1.000 2,148.45 900.00 049-192-004 6030 VIA COLONIA CT SFR 1.000 2,148.45 900.00 049-192-005 6040 VIA COLONIA CT SFR 1.000 2,148.45 900.00 049-192-006 6050 VIA COLONIA CT SFR 1.000 2,148.45 900.00 049-192-007 6060 VIA COLONIA RD SFR 1.000 2,148.45 900.00 049-192-008 6055 VIA COLONIA CT SFR 1.000 2,148.45 900.00 049-192-009 6045 VIA COLONIA CT SFR 1.000 2,148.45 900.00 049-192-010 6035 VIA COLONIA CT SFR 1.000 2,148.45 900.00 049-192-011 6025 VIA COLONIA RD SFR 1.000 2,148.45 900.00 049-192-012 6015 VIA COLONIA CT SFR 1.000 2,148.45 900.00 049-192-013 6005 VIA COLONIA RD SFR 1.000 2,148.45 900.00 049-192-014 5045 VIA COLONIA CT SFR 1.000 2,148.45 900.00 049-192-015 5035 VIA COLONIA CT SFR 1.000 2,148.45 900.00 049-192-016 5025 VIA COLONIA CT SFR 1.000 2,148.45 900.00 049-192-017 5015 VIA COLONIA CT SFR 1.000 2,148.45 900.00 049-192-018 5005 VIA COLONIA CT SFR 1.000 2,148.45 900.00 049-192-019 5010 VIA COLONIA CT SFR 1.000 2,148.45 900.00 049-192-020 5020 VIA COLONIA CT SFR 1.000 2,148.45 900.00 049-192-021 5030 VIA COLONIA CT SFR 1.000 2,148.45 900.00 049-192-022 5040 VIA COLONIA CT SFR 1.000 2,148.45 900.00 049-193-001 6100 VIA HUERTO CT SFR 1.000 2,148.45 900.00 049-193-002 6120 VIA HUERTO RD SFR 1.000 2,148.45 900.00 049-193-003 6130 VIA HUERTO RD SFR 1.000 2,148.45 900.00 049-193-004 6140 VIA HUERTO RD SFR 1.000 2,148.45 900.00 049-193-005 6150 VIA HUERTO RD SFR 1.000 2,148.45 900.00 049-193-006 6160 VIA HUERTO RD SFR 1.000 2,148.45 900.00 049-193-007 6170 VIA HUERTO RD SFR 1.000 2,148.45 900.00 049-193-008 6180 VIA HUERTO CT SFR 1.000 2,148.45 900.00 049-193-010 6200 VIA HUERTO RD SFR 1.000 2,148.45 900.00 049-193-011 6210 VIA HUERTO RD SFR 1.000 2,148.45 900.00 049-193-012 6220 VIA HUERTO CT SFR 1.000 2,148.45 900.00 049-193-013 6225 VIA HUERTO CT SFR 1.000 2,148.45 900.00 049-193-014 6215 VIA HUERTO CT SFR 1.000 2,148.45 900.00 049-193-015 6205 VIA HUERTO RD SFR 1.000 2,148.45 900.00 049-193-016 6195 VIA HUERTO CT SFR 1.000 2,148.45 900.00 049-193-017 6185 VIA HUERTO RD SFR 1.000 2,148.45 900.00 049-193-018 6125 VIA HUERTO CT SFR 1.000 2,148.45 900.00 049-193-019 6115 VIA HUERTO CT SFR 1.000 2,148.45 900.00 049-193-020 6105 VIA HUERTO CT SFR 1.000 2,148.45 900.00 049-193-021 2180 SAN RAMON RD SFR 1.000 2,148.45 900.00 Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 1 of 2 04/08/2026 03:01:54PM 6/9/26 | Item H2 | Attachment 6

Page 76 of 250 ends

City of Atascadero
Landscaping & Lighting Maint Dist No. 1
Final Billing Detail Report for Fiscal Year 2026/27
APN Address Land Use Benefit Units Max Assessment Grand Total 049-193-022 2190 SAN RAMON RD SFR 1.000 2,148.45 900.00 049-193-023 2200 SAN RAMON RD SFR 1.000 2,148.45 900.00 049-193-024 2210 SAN RAMON RD SFR 1.000 2,148.45 900.00 049-193-025 2220 SAN RAMON RD SFR 1.000 2,148.45 900.00 049-193-026 6190 CONEJO RD SFR 1.000 2,148.45 900.00
049-193-027 6180 CONEJO RD SFR 1.000 2,148.45 900.00
049-193-028 6160 CONEJO RD SFR 1.000 2,148.45 900.00
049-193-029 6140 CONEJO RD SFR 1.000 2,148.45 900.00
049-193-030 6100 CONEJO RD SFR 1.000 2,148.45 900.00
049-193-031 2235 SAN RAMON RD SFR 1.000 2,148.45 900.00 049-193-032 2225 SAN RAMON RD SFR 1.000 2,148.45 900.00 049-193-033 2215 SAN RAMON RD SFR 1.000 2,148.45 900.00 049-193-034 2205 SAN RAMON RD SFR 1.000 2,148.45 900.00 049-193-035
2195 AVENIDA
MANZANA RD SFR 1.000 2,148.45 900.00
049-193-036
2185 AVENIDA
MANZANA RD SFR 1.000 2,148.45 900.00
049-193-037
2175 AVENIDA
MANZANA RD SFR 1.000 2,148.45 900.00
049-193-038
2165 AVENIDA
MANZANA RD SFR 1.000 2,148.45 900.00
049-193-039
2135 AVENIDA
MANZANA RD SFR 1.000 2,148.45 900.00
049-193-040
2125 AVENIDA
MANZANA RD SFR 1.000 2,148.45 900.00
049-193-041
2115 AVENIDA
MANZANA RD SFR 1.000 2,148.45 900.00
049-193-042
2065 AVENIDA
MANZANA RD SFR 1.000 2,148.45 900.00
049-193-043
2055 AVENIDA
MANZANA RD SFR 1.000 2,148.45 900.00
049-193-044
2100 AVENIDA
MANZANA RD SFR 1.000 2,148.45 900.00
049-193-045
2110 AVENIDA
MANZANA RD SFR 1.000 2,148.45 900.00
049-193-046
2140 AVENIDA
MANZANA RD SFR 1.000 2,148.45 900.00
049-193-047
2150 AVENIDA
MANZANA RD SFR 1.000 2,148.45 900.00
049-193-048
2160 AVENIDA
MANZANA RD SFR 1.000 2,148.45 900.00
049-193-051 6190 VIA HUERTO CT SFR 1.000 2,148.45 900.00 70 Accounts 70.000 $150,391.50 $63,000.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 2 of 2 04/08/2026 03:01:54PM 6/9/26 | Item H2 | Attachment 6

Page 77 of 250 ends

CITY OF ATASCADERO
CITY COUNCIL STAFF REPORT Item H3
Department: Administrative
Services
Date: 6/9/26
Placement: Public Hearing
TO: JAMES R. LEWIS, CITY MANAGER
FROM: CINDY CHAVEZ, DEPUTY DIRECTOR OF ADMINISTRATIVE SERVICES PREPARED BY: DAWN PATTERSON, FINANCE ANALYST
SUBJECT: De Anza Estates Assessment Districts
RECOMMENDATIONS:

Council:

2. Adopt Draft Resolution B, ordering the levy and collection of assessments for fiscal year 2026/2027 for Street and Storm Drain Maintenance District No. 03 (De Anza Estates).

4. Adopt Draft Resolution D, ordering the levy and collection of assessments for fiscal year 2026/2027 for Landscaping and Lighting District No. 03 (De Anza Estates).

DISCUSSION:

The City Council formed and began assessing Street and Storm Drain Maintenance District No.03 (De Anza Estates) in 2005. This district was formed to provide funding for future routine maintenance of the streets, storm drains and sidewalks in the De Anza Estates subdivision.

The City Council also formed and began assessing Landscaping and Lighting Maintenance District No.03 (De Anza Estates) in 2005. This district was formed to provide for funding and maintenance of street trees, open space, park area, medians, walkways, paths and other landscaping and lighting improvements within the De Anza Estates subdivision.

NBS, an independent financial consultant, was hired to prepare the engineer’s reports for the two districts. The engineer’s reports and the levies must be approved by Council annually. This is done in a two-step process. Last month, three resolutions for each district (a total of 6 resolutions in all) were passed to begin the process of continuing the levies. At that time, the Engineer’s Reports were preliminarily approved, proceedings were initiated for the levy, and the date of

Page 78 of 250 ends

6/9/26 | Item H3 | Staff Report
tonight’s public hearing was established. The resolutions that are before the Council tonight are for the final approval of the Engineer’s Reports and for the approval of the annual levies.

The proposed assessments for fiscal year 2026/2027 are less than the Maximum Assessment Rate. In accordance with the formula voters of the district adopted in 2005, the City may increase the Maximum Assessment Rate for inflation by the greater of the Consumer Price Index (CPI) or

3.0%. The Maximum Assessment Rate was increased by 3.0% (CPI) this year for both districts.

An Assessment Information Notice was mailed to all property owners recently. The notice provided the date of the upcoming June 9, 2026, Public Hearing, City staff contact information for questions and comments, dates for the related Council meetings, information on how to participate in the meeting, and the proposed and current levies for both districts.

Staff has reviewed the short and long-term costs to maintain the districts and recommends an increase of $30 for the Landscaping and Lighting District and no increase for the Street and Storm Drain Maintenance District. The total cost of both districts is proposed to be $647.48 for Zone A and $986.50 for Zone B. The Landscaping and Lighting District levy is about 18% of the allowable maximum annual assessment and the Street and Storm Drain District is about 56% of the allowable maximum annual assessment.

District Amount Per EBU
Assessment
Fiscal Year 2025-26
Amount Per EBU
Proposed
Assessment Fiscal
Year 2026-27
Atascadero Street and Storm Drain Maintenance District
No. 03 De Anza Estates - Senior Housing $ 342.48 $ 342.48 Atascadero Street and Storm Drain Maintenance District
No. 03 De Anza Estates - Single Family Residential $ 681.50 $ 681.50 Atascadero Landscaping and Lighting Maintenance
District No. 03 De Anza Estates $ 275.00 $ 305.00
While the levy for fiscal year 2026/2027 for the Landscape and Lighting District is proposed with a slight increase, staff projects that the districts will likely see future increased costs due to aging infrastructure and increases in utilities, materials, and labor costs. City staff will continue to maximize efficiencies and minimize these increases as much as possible.

FISCAL IMPACT:

Annual assessments for 2026/2027 will total $30,562 for road/drainage system maintenance and $19,367 for landscape and lighting maintenance. These amounts will be assessed to the owners of parcels in De Anza Estates. The City General Fund will contribute $1,400 for the fiscal year 2026/2027 for half of the maintenance costs of the trails and open space.

Page 79 of 250 ends

6/9/26 | Item H3 | Staff Report
REVIEWED BY OTHERS:

This item has been reviewed by the Deputy Administrative Services Director.

REVIEWED AND APPROVED FOR COUNCIL AGENDA
James R. Lewis, City Manager
ATTACHMENT(S):

1. Draft Resolution A

2. Draft Resolution B

3. Engineer’s Annual Levy Report Street and Storm Drain Maintenance District No. 03 (De Anza Estates)

4. Draft Resolution C

5. Draft Resolution D

6. Engineer’s Annual Levy Report - Landscaping and Lighting District No. 03 (De Anza Estates)

Page 80 of 250 ends

6/9/26 | Item H3 | Attachment 1

DRAFT RESOLUTION A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ATASCADERO, CALIFORNIA, APPROVING THE FINAL ENGINEER’S

REPORT REGARDING THE STREET AND STORM DRAIN
MAINTENANCE DISTRICT NO. 03 (DE ANZA ESTATES), AND THE

LEVY AND COLLECTION OF ANNUAL ASSESSMENTS RELATED
THERETO FOR FISCAL YEAR 2026/2027
WHEREAS, the City Council of the City of Atascadero, California (hereafter referred to as “City Council”), pursuant to the provisions the Benefit Assessment Act of 1982, Chapter 6.4 of the California Government Code, beginning with Section 54703 (hereafter referred to as the “Act”), did by previous Resolution order the Engineer, NBS, to prepare and file a report in accordance with the Act in connection with Street and Storm Drain Maintenance District No. 03 (De Anza Estates) (hereafter referred to as the “District”) and the proposed levy and collection of assessments related thereto for fiscal year 2026/2027, said fiscal year starting July 1, 2026 and ending June 30, 2027; and
WHEREAS, the Engineer has prepared and filed with the City Clerk of the City of Atascadero and the City Clerk has presented to the City Council such report entitled “Engineer’s Annual Levy Report for Street and Storm Drain Maintenance District No. 03 (De Anza Estates), fiscal year 2026/2027” (hereafter referred to as “Engineer’s Report”) in accordance with the Act; and
WHEREAS, the City Council has carefully examined and reviewed the Engineer’s Report as presented and is satisfied with the items and documents as set forth therein, and finds that the levy of assessments has been spread in accordance with the special benefits received from the improvements, operation, maintenance and services to be performed, as set forth in said Engineer’s Report.

NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Atascadero:

SECTION 1. The above recitals are true and correct.

Page 81 of 250 ends

6/9/26 | Item H3 | Attachment 1
SECTION 3. The Engineer’s Report as presented, is hereby approved, and is ordered to be filed in the Office of the City Clerk as a permanent record and to remain open to public inspection.

SECTION 4. The City Clerk shall certify to the passage and adoption of this Resolution and the minutes of this meeting shall so reflect the adoption and approval of the Engineer’s Report.

PASSED AND ADOPTED at a regular meeting of the City Council held on the 9 th day of
June, 2026.

On motion by Council Member ______ and seconded by Council Member _______, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

CITY OF ATASCADERO:
________________________________
Charles Bourbeau, Mayor
ATTEST:

Lara K. Henderson, City Clerk

Page 82 of 250 ends

6/9/26 | Item H3 | Attachment 2

DRAFT RESOLUTION B

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ATASCADERO, CALIFORNIA, ORDERING THE LEVY AND
COLLECTION OF ASSESSMENTS FOR FISCAL YEAR 2026/2027 FOR STREET AND STORM DRAIN MAINTENANCE DISTRICT NO. 03
(DE ANZA ESTATES)
WHEREAS, the City Council of the City of Atascadero, California (hereafter referred to as City Council) has by previous Resolutions initiated proceedings to levy special benefit assessments against parcels of land within Street and Storm Drain Maintenance District No. 03 (De Anza Estates) (hereafter referred to as the “District”) for the fiscal year commencing July 1, 2026 and ending June 30, 2027; pursuant to the provisions of the Benefit Assessment Act of 1982, Chapter 6.4 of the California Government Code, beginning with Section 54703 (hereafter referred to as the “Act”) to pay the costs and expenses of operation, maintenance, repair and servicing of local street right-of-way improvements and storm drain facilities related thereto; and WHEREAS, the Engineer selected by the City Council has prepared and filed with the City Clerk, and the City Clerk has presented to the City Council an Engineer’s Report in connection with the proposed levy of special benefit assessments upon eligible parcels of land within the District, and the City Council did by previous Resolution adopt and approve said Engineer’s Report; and
WHEREAS, the City Council desires to levy and collect assessments against parcels of land within the District for the fiscal year commencing July 1, 2026 and ending June 30, 2027, to pay the costs and expenses of operation, maintenance, repair and servicing of local street right-ofway improvements and storm drain facilities related thereto; and WHEREAS, the City Council conducted in May 2005 a property owner protest ballot proceeding for the District assessments proposed to be levied and majority protest of the assessments described in the Engineer’s Report did not exist pursuant to the provisions of the California State Constitution Article XIIID.

NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Atascadero:

Page 83 of 250 ends

6/9/26 | Item H3 | Attachment 2
c) The net amount to be assessed upon the lands within the District is in accordance and apportioned by a formula and method which fairly distributes the net amount among the eligible parcels in proportion to the special benefit to be received by each parcel from the improvements and services for the fiscal year commencing July 1, 2026, and ending June 30, 2027.

SECTION 5. The City shall deposit the money representing assessments collected by the County for the District to the credit of a fund for the Street and Storm Drain Maintenance District No. 03 (De Anza Estates), and such money shall be expended only for the maintenance, operation and servicing of the improvements as described in the Engineers Report and generally described in Section 3 of this Resolution.

SECTION 7. The City Clerk or their designee is hereby authorized and directed to file the levy with the County Auditor, per Section 54718 of the Act, upon adoption of this Resolution.

PASSED AND ADOPTED at a regular meeting of the City Council held on the 9 th day of
June, 2026.

On motion by Council Member ______ and seconded by Council Member _______, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

CITY OF ATASCADERO:
________________________________
Charles Bourbeau, Mayor
ATTEST:

Lara K. Henderson, City Clerk

Page 84 of 250 ends

Fiscal Year 2026/27 Engineer’s Report For:

Street and Storm Drain Maintenance
District No. 03 (De Anza Estates)
May 2026
6/9/26 | Item H3 | Attachment 3

Page 85 of 250 ends

CITY OF ATASCADERO
Street and Storm Drain Maintenance District No. 03
(De Anza Estates)

6500 Palma Avenue
Atascadero, CA 93422
Phone – (805) 461-5000
Fax – (805) 461-7612

CITY COUNCIL
Charles Bourbeau, Mayor
Mark Dariz, Mayor Pro Tem
Susan Funk, Council Member
Seth Peek, Council Member
Heather Newsom, Council Member

Page 86 of 250 ends

TABLE OF CONTENTS

1. Engineer’s Letter ............................................................................................................. 1

2. Executive Summary ........................................................................................................ 2

3. Plans and Specifications .................................................................................................. 4

3.1 Benefiting Properties within the District ................................................................ 4

3.2 Funding Authorized by the 1982 Act ....................................................................... 4

3.3 Description of Improvements and Services ............................................................ 4

4. Estimate of Costs ............................................................................................................ 8

5. Method of Assessment ................................................................................................... 9

5.1 General .................................................................................................................... 9

5.2 Benefit Analysis ....................................................................................................... 9

5.3 Assessment Methodology ..................................................................................... 10

5.4 Assessment Range Formula .................................................................................. 15

6. Assessment Diagram ..................................................................................................... 17

7. Assessment Roll ............................................................................................................ 18 6/9/26 | Item H3 | Attachment 3

Page 87 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Street and Storm Drain Maintenance District No. 03 (De Anza) 1

1. ENGINEER’S LETTER
WHEREAS, on August 9, 2005 by Resolution No. 2005-071, the City Council of the City of Atascadero (the ”City”), State of California, in accordance with and pursuant to the provisions of the Benefit Assessment Act of 1982, being Chapter 6.4 of the California Government Code, commencing with Section 54703 (hereafter referred to as the “1982 Act”), and in compliance with the substantive and procedural requirements of the California State Constitution Article XIIID (hereafter referred to as the “California Constitution”), established the City of Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) (the “District”); and
WHEREAS, on May 12, 2026, the City Council, adopted its Resolution Initiating Proceedings for the Annual Levy of Assessments and Ordering the Preparation of an Engineer’s Report for the District; and WHEREAS, the Resolution Initiating Proceedings directed NBS to prepare and file a report describing the general nature, location, and extent of the improvements to be maintained; an estimate of the costs of the maintenance, operations, and servicing of the improvements for the District for the referenced fiscal year; a diagram for the District, showing the area and properties to be assessed; and an assessment of the estimated costs of the administration, maintenance, operations, and servicing the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received.

FY 2026/27 Summary of Assessment
Description Zone A - Amount Zone B - Amount Total Amount Estimated Annual Costs $62,895 $96,475 $159,370
Capital Reserve Collection/(Uses) 12,694 19,041 31,735
Levy Adjustments (62,746) (97,797) (160,543)
Balance to Levy (1) $12,843 $17,719 $30,562
Fiscal Year 2026/27 Maximum Rate (2) $976.18 $1,206.87
Fiscal Year 2026/27 Proposed Applied Rate (2) $342.48 $681.50 (1) Total Levy Amount is rounded up to the nearest dollar. (2) Rates above are per Equivalent Benefit Unit.

I, the undersigned, respectfully submit the enclosed Engineer’s Report and, to the best of my knowledge, information, and belief, the Engineer’s Report, Assessments, and the Assessment Diagram herein have been prepared, computed, and levied in accordance with the assessment methodology adopted, approved, and ordered by the City Council of the City of Atascadero and the 1982 Act.

City Engineer
6/9/26 | Item H3 | Attachment 3

Page 88 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Street and Storm Drain Maintenance District No. 03 (De Anza) 2

Street and Storm Drain Maintenance District No. 03 (De Anza Estates) (hereafter referred to as the “District”), which includes the lots and parcels of land within the residential subdivision known as De Anza Estates, Tract 2498 within the City limits of the City. This Engineer’s Report (hereafter referred to as the “Report”) has been prepared in connection with the levy and collection of annual assessments related thereto for Fiscal Year 2026/27.

This Report describes the District, the improvements, and the proposed assessments to be levied against properties in connection with the special benefits the properties will receive from the maintenance and servicing of the District improvements and facilities. The annual assessments described herein will provide a funding source for the continued operation and maintenance of streets, storm drain system and appurtenant facilities installed in connection with the development of properties within the District.

The improvements and assessments described in this Report are based on the development of properties within the District and represent an estimate of the direct expenditures, incidental expenses, and fund balances that will be necessary to maintain and service the streets and storm drain system that provides special benefits to properties within the District. The structure of the District (organization), the improvements, the method of apportionment, and assessments described herein are based on current development plans and specifications for Tract 2498; and by reference these plans and specifications are made part of this Report.

Page 89 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Street and Storm Drain Maintenance District No. 03 (De Anza) 3 levy of assessments. Upon conclusion of the public hearing, property owner protest ballots received were opened and tabulated to determine whether majority protest existed (ballots were weighted based on assessment amounts), and by resolution the City Council confirmed the results of the ballot tabulation.

Page 90 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Street and Storm Drain Maintenance District No. 03 (De Anza) 4

3. PLANS AND SPECIFICATIONS

3.1 Benefiting Properties within the District
The territory within the District consists of the lots, parcels and subdivisions of land within the proposed residential subdivision known as the De Anza Estates, Tract 2498, which encompasses an area of land totaling approximately seventy-six acres (75.84 acres).

This subdivision includes twenty-six (26) Single-Family Residential Units and sixty (60) Modified Housing/Senior Housing Units. The subdivision is situated in the northern portion of the City of Atascadero northeast of Highway 101 and is generally located:
 At the North end of El Camino Real;
 North and East of U.S. HWY 101; and,
 South and West of the Salinas River.

3.2 Funding Authorized by the 1982 Act
As generally defined by the Benefit Assessment Act of 1982 and applicable to this District, the City may impose a benefit assessment to finance the maintenance and operation costs of the following services:
 Drainage and Flood Control;
 Streets and Roads.

In addition to imposing a benefit assessment for the annual maintenance and operation of the District improvements, the City may also authorize an assessment or utilize existing assessment revenues to finance the installation, construction or replacement of drainage and flood control facilities as well as the street and road improvements (with some limitations). While such activities are permitted under the 1982 Act, the budget and assessments for this District only provide for normal maintenance and operation of the improvements. Since most major rehabilitation/construction projects result from unforeseen damages, the extent and cost of such projects are not easily predicted and to accumulate funds as part of the normal annual assessments would not be reasonable. If such funding becomes necessary, the City may present a new or increased assessment to the property owners to support the projects.

3.3 Description of Improvements and Services
The purpose of this District is to fund the activities necessary to maintain and service the local streets and the drainage and flood control systems constructed and installed in connection with development of properties within the residential subdivision known as (De Anza Estates), Tract 2498 pursuant to approved development plans and agreements. The improvements may consist of all or a portion of the public streets, drainage and flood control facilities associated with Tract 2498 and the maintenance of these improvements may include but are not limited to the materials, equipment, labor, and incidental expenses deemed necessary to keep these improvements in satisfactory condition. The maintenance of the improvements and related activities shall be funded entirely or partially through the District assessments.

The District improvements and services are generally described as:
 Street maintenance that may include but is not limited to the repair and servicing of street surfaces, curbs, gutters, bridges, driveway approaches, sidewalks, barricades, delineation, signage 6/9/26 | Item H3 | Attachment 3

Page 91 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Street and Storm Drain Maintenance District No. 03 (De Anza) 5 or other facilities within the public street rights-of-way installed in connection with the development of properties in Tract 2498 and that have been dedicated to the City;  Storm drain and flood control maintenance that may include but is not limited to inspection, repair and servicing of drainage basins, inlets, catch basins, manholes, outlets, drywells, pumps, filters and storm drain pipes installed in connection with the development of properties of Tract 2498 as well as any off-site improvements and facilities directly associated with the aforementioned infrastructure that is deemed necessary to service or protect the properties including waste water treatment;
 The appurtenant equipment, materials and service contracts related to the aforementioned improvements and facilities;
 Specifically excluded are those improvements or facilities: located on private property or common areas; that may be provided or maintained by an agency other than the City; that may be provided by another assessment or tax levied by the City; or that may be provided and maintained by a Homeowner’s Association or similar entity.

3.3.1 STREET MAINTENANCE
The street maintenance program may include, but is not limited to: the repair of potholes, cracks or other failures in the asphalt surface; repair or replacement of curbs, gutters, driveway approaches and sidewalks as required as part of maintaining the streets; repair or installation of street signs, barricades, fencing or other delineation; mechanized sweeping and cleaning of the streets and gutters; slurry sealing, overlays and re-striping of the street surfaces. The specific activities and timing of various street and road maintenance services shall be determined by the City’s Public Works Department as necessary to extend the life of the streets or to improve traffic circulation and safety as available funding permits. Specifically, the street improvements for this District are identified as:
 Approximately 66,000 square feet of asphalt street surface located on the interior streets of the development identified as El Camino Real north of the Upper Bridge Crossing; Ferrocarril Road from the Graves Creek Bridge northeast to the end of Tract 2498; and De Anza Court.  Approximately 5,700 linear feet of curb and gutter along El Camino Real, Ferrocarril Road, and De Anza Court, 26 driveway approaches and various street signs within the District;  Two bridges identified as the Upper Bridge Crossing (located on El Camino Real at the entryway to the tract) and the Graves Creek Bridge (located on Ferrocarril Road located at the entryway to the senior housing development);
 Specifically not included as part of the street maintenance program are the costs associated with major replacements or reconstruction. Although the District assessments will provide funding for regular maintenance and servicing of the improvements that will extend the useful life of the 6/9/26 | Item H3 | Attachment 3

Page 92 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Street and Storm Drain Maintenance District No. 03 (De Anza) 6 street improvements, the assessments are not intended to fund major replacements or reconstruction of the street surfaces or adjacent improvements such as curbs, gutters or driveway approaches. The costs of extensive replacement or reconstruction activities such as grinding and resurfacing of the asphalt; and replacement of curbs, gutters driveway approaches and sidewalks is significantly more than the amount that can reasonably be collected annually under the provisions of the 1982 Act. When such repairs or activities are deemed necessary, the City will consider various financing options including new or increased assessments for property owner approval.

Also not included as part of the street maintenance program are the street improvements within the senior housing development (street improvements southwest of the Graves Creek Bridge). The street improvements and facilities within the senior housing development shall be maintained and funded through a Homeowner’s Association or similar entity.

The Public Works Department shall authorize the operational activities and maintenance of the public street and right-of-way improvements, facilities and services that may include, but are not limited to:
 Regular street sweeping services necessary to control dirt and debris on street surfaces and gutters;
 Annual inspection of street surface and repair of potholes and surface cracks as needed;  Periodic slurry or overly of street surfaces and driveway approaches (typically one or the other once every five years);
 Periodic re-striping of traffic lanes, bike lanes, street parking areas, crosswalks and intersections (typically in conjunction with slurry or overly activities);  Graffiti abatement of public improvements within the street rights-of-way that are maintained by the District including but not limited to sandblasting, repainting and repair of fences, walls, barricades, sidewalks and signage as needed;
 Annual inspection and periodic repair or replacement of decorative street- pavers as needed;  Annual inspection and minor repairs of curbs, gutters, driveway approaches and sidewalks including partial segment replacements as needed to ensure pedestrian and vehicle safety or the integrity of the street;
 Annual inspection and periodic repair or rehabilitation of street signs and traffic control devices;  Annual inspection and repair of barricades, street-fencing, delineation or retaining walls within the street rights-of-way as needed.

A portion of the services described above are not performed on an annual basis but rather on a periodic basis, such as slurry sealing or overlaying the asphalt streets, and the funds necessary for these activities are collected in installments as part of the annual assessments. The monies collected each year for these services will be accumulated in a special fund of the District (Reserve Fund or Capital Improvement Fund).

The monies accumulated for these activities shall be spent when sufficient funds have been accumulated to perform the services deemed necessary by the City (approximately every five years). This process of accumulating funds (installments) shall continue until such time the District is dissolved; or the City determines that such funding procedures require modification. Changes in the process of accumulating funds that would result in an increase to the annual assessment rate must be presented to the property owners for approval prior to imposing such an increase. 6/9/26 | Item H3 | Attachment 3

Page 93 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Street and Storm Drain Maintenance District No. 03 (De Anza) 7

3.3.2 STORM DRAIN AND FLOOD CONTROL MAINTENANCE
The storm drain and flood control system associated with the District may include but is not limited to: drainage basins and bio-filters; channel ways; storm drain inlets, catch basins, manholes, outlets; drywells, pumps, filters and pipes. The storm drain system to be maintained primarily involves on-site facilities (within the District boundaries) but may also include off-site improvements such as water treatment equipment, facilities or services mandated or required by Federal, State or County regulations for water pollution control. The annual assessments for this District are intended to support a storm drain and flood control maintenance program that will adequately regulate and control storm water runoff resulting from the development of properties within the District. This maintenance program may include but is not limited to: inspection and documentation of the system; cleaning, servicing or repair of the facilities and equipment; and the partial replacement or rehabilitation of equipment and facilities. The storm drain and flood control system includes but is not limited to:
 A single drainage basin of approximately 9,000 square feet;  A total of approximately three (3) inlets, catch basins, manholes or outlets located within the single-family residential portion of Tract 2498;
 Approximately 200 linear feet of 24 inch storm drain pipe.

The Public Works Department shall authorize and schedule the operational activities and maintenance of the storm drain and storm water pollution treatment infrastructure, facilities and services that may include, but are not limited to:
 Cleaning of storm drain inlets, catch basins, manholes and pipes as needed;  Stencil maintenance and documentation of facilities as required by Federal, State or County regulations;
 Cleaning and landscape maintenance of the drainage basins, bio-filter areas or channel ways as needed;
 Debris removal and pest control in and around the storm drain facilities as needed;  Minor repairs and maintenance of the storm drain inlets, catch basins and outlets as needed;  Street sweeping services necessary to control debris and water flow for the storm drain system; and,
 The operational costs related to NPDES compliance requirements.

A portion of the services described above are not performed on an annual basis but rather on a periodic basis such as minor repairs to the storm drain inlets, catch basins and outlets, and the funds necessary for these activities are collected in installments as part of the annual assessments. The monies collected each year for these services will be accumulated in a special fund of the District (Reserve Fund or Capital Improvement Fund). The monies accumulated for these activities shall be spent as needed to perform the services deemed necessary by the City. This process of accumulating funds (installments) shall continue until such time the District is dissolved; or the City determines that such funding procedures require modification. Changes in the process of accumulating funds that would result in an increase to the annual assessment rate must be presented to the property owners for approval prior to imposing such an increase.
6/9/26 | Item H3 | Attachment 3

Page 94 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Street and Storm Drain Maintenance District No. 03 (De Anza) 8

4. ESTIMATE OF COSTS
Zone A Zone B 2026/27
Budget (Senior Housing) (SF-Residential) Assessment

DIRECT COSTS
Streets, Roads & Storm Drain Improvements
Drainage Maintenance Services $0 $3,610 $3,610
Street Sweeping Services 660 990 1,650
Inspection & Operational Services - Roads, Drainage 1,088 1,632 2,720 Traffic Sign Replacement 0 0 0
Street & Bridge Maintenance 58,192 87,288 145,480
Total Annual Direct Costs $59,940 $93,520 $153,460

ADMINISTRATION EXPENSES
City Annual Administration $810 $810 $1,620
Engineer's Report & Services 2,085 2,085 4,170
Public Noticing 60 60 120
Total Administration Costs $2,955 $2,955 $5,910
TOTAL DIRECT & ADMINISTRATION COSTS $62,895 $96,475 $159,370

CAPITAL RESERVE COLLECTIONS/(USES)
Collection for Street Surface Activities $6,637 $9,957 $16,594 Collection for Street Re-striping 35 54 89
Collection for Repair Activities: Curbs, Gutters, Approaches & Sidewalks 120 179 299 Collection for Debris Removal 127 190 317
Collection for Bridges 5,729 8,594 14,323
Collection for Storm Drain Infrastructure 46 68 114
Total Capital Reserve Collections/(Uses) $12,694 $19,041 $31,735

LEVY ADJUSTMENTS
Interest Income - Improvement Fund ($5,696) ($7,867) ($13,563) Interest Income - Operating Reserve Fund (154) (213) (367) Reserve Fund Collection (Use) (56,896) (89,718)
Total Levy Adjustments ($62,746) ($97,797) ($160,543)
BALANCE TO LEVY $12,843 $17,719 $30,562

DISTRICT STATISTICS
Total Parcels 61 28 89
Parcels Levied 60 26 86
Total EBU (1) 37.50 26 63.50
Proposed Levy per EBU $342.48 $681.50
Maximum Levy per EBU $976.18 $1,206.87

FUND BALANCE INFORMATION
Beginning Operating Reserve Balance $5,801 $8,012 $13,813 Operational Reserve Interest 154 213 367
Surplus Transfer from Improvement Fund 67,307 92,948 160,255 Operational Reserve Collection (Use) (62,746) (97,797) (160,543) Ending Operating Reserve Balance $10,516 $3,376 $13,892 Beginning Improvement Fund Balance $263,773 $364,257 $628,030 Improvement Fund Interest 5,696 7,867 13,563
Surplus Transfer to Operations Fund (67,307) (92,948) (160,255) Improvement Fund Collection/(Use) 12,694 19,041 31,735
Estimated Ending Improvement Fund Balance $214,856 $298,217 $513,073 (1) Levy per EBU rate does not include the County of San Luis Obispo fee of $2.00 per parcel (146,614)
6/9/26 | Item H3 | Attachment 3

Page 95 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Street and Storm Drain Maintenance District No. 03 (De Anza) 9

5. METHOD OF ASSESSMENT

5.1 General
The 1982 Act permits the establishment of assessment districts by agencies for the purpose of providing for the maintenance, operation and servicing of drainage and flood control improvements as well as streets, roads and appurtenant facilities. The 1982 Act further requires that the cost of these improvements be levied according to benefit rather than assessed value:
“The amount of the assessment imposed on any parcel of property shall be related to the benefit to the parcel which will be derived from the provision of the service”.

5.2 Benefit Analysis
Each of the proposed improvements and services, and the associated costs and assessments have been carefully reviewed, identified and allocated based on special benefit pursuant to the provisions of the 1982 Act and the California Constitution. The street and storm drain improvements associated with this District were necessary and essential requirements for the orderly development of the properties within the District to their full potential, consistent with the development plans and applicable portions of the City General Plan. As such the ongoing operation, servicing and maintenance of those improvements would otherwise be the direct financial obligation of each individual property owner. Since each parcel to be assessed within the District could not have been developed in the absence of these improvements and facilities, each parcel has a direct investment in the proper maintenance of the improvements that is over and above any general benefits that may be conferred by such improvements and services.

Page 96 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Street and Storm Drain Maintenance District No. 03 (De Anza) 10 efficient movement of people and goods to and from the benefiting properties Likewise, the maintenance and servicing of the storm drain system ensures proper water flow and control of excess water during periods of rain, which is essential to preservation and protection of private property. Together the maintenance and servicing of the streets and storm drain system contributes to a specific enhancement of each of the parcels within the District and the absence of adequate maintenance and servicing of the District improvements could eventually have a negative impact on properties within the District.

5.3.1 ZONES OF BENEFIT:

While it has been determined that the improvements to be maintained by the District are entirely a special benefit to properties within the District (No measurable general benefit), upon review of the various improvements, the location and need for such improvements and the proposed development of properties within the District it has been determined that the improvements and services that will benefit the singlefamily residential properties are not identical to the improvements and services that will benefit the senior housing development, although they do share in the benefit of some of the improvements. Therefore, it has been determined that two separate zones of benefit are required to appropriately allocate the costs of 6/9/26 | Item H3 | Attachment 3

Page 97 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Street and Storm Drain Maintenance District No. 03 (De Anza) 11 maintaining the improvements and establish proportional special benefit assessments. The properties associated with the senior housing development have been identified and designated as “Zone A”, and the single-family residential properties within Tract 2498 have been identified and designated as “Zone B” based on the improvements associated with those properties. (1) Zone A (Senior Housing Portion of Tract 2489) — It has been determined that these properties benefit and shall proportionately share in the costs associated with maintaining and servicing the Upper Bridge Crossing, El Camino Real and the western portion of Ferrocarril Road leading into these properties. It has also been determined that the construction of the Graves Creek Bridge was only necessary for the development of these properties and therefore the cost to service and maintain this facility shall be entirely allocated to these properties. Conversely, the storm drain improvements that will be maintained by the City within Tract 2498 have been constructed as part of developing the twenty-six single-family residential properties and it has been determined that the senior housing properties do not receive direct and special benefit from those particular improvements. While these properties will not be assessed for the storm drain improvements, it should be noted that some storm drain facilities will be constructed as part of the senior housing development; however these improvements are not included in this District and will be provided and maintained by a Homeowner’s Association or similar entity. (2) Zone B (Single-Family Residential Portion of Tract 2498) — Along with the properties in Zone A, the single-family residential properties within Tract 2498 benefit and shall proportionately share in the costs associated with maintaining and servicing the Upper Bridge Crossing and El Camino Real. In addition, the overall development of these particular properties required the construction and installation of the street improvements on Ferrocarril Road and De Anza Court as well as the entire storm drain system to be maintained by the District. Therefore, the cost of maintaining and servicing these particular improvements shall be budgeted and allocated proportionately to only those properties in Zone B.

Conversely, the construction of the Graves Creek Bridge was only necessary for the development of the senior housing and the properties within Zone B will not share in the cost of maintaining this particular facility.

5.3.2 EQUIVALENT BENEFIT UNITS:

Page 98 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Street and Storm Drain Maintenance District No. 03 (De Anza) 12

5.3.3 EBU APPLICATION BY LAND USE:
(1) Single-family Residential — This land use is defined as a fully subdivided residential home site with or without a structure. This land use is assessed 1.0 EBU per lot or parcel. This is the base value that the other properties are compared and weighted against (i.e. Equivalent Benefit Unit “EBU”). (2) Multi-family Residential — This land use is defined as a fully subdivided residential parcel that has more than one residential unit developed on the property. (This land use typically includes apartments, duplexes, triplex etc., but does not generally include condominiums, town-homes or mobile home parks). Based on average population densities and size of the structure as compared to a typical single-family residential unit, multi-family residential parcels shall be proportionately assessed for the parcel’s total number of residential units utilizing a sliding benefit scale. Although multi-family properties typically receive similar benefits to that of a single-family residential, it would not be reasonable to conclude that on a per unit basis, the benefits are equal. Studies have consistently shown that the average multi-family unit impacts infrastructure approximately 75% as much as a single-family residence (Sample Sources: Institute of Transportation Engineers Informational Report Trip Generation, Fifth Edition; Metcalf and Eddy, Wastewater Engineering Treatment, Disposal, Reuse, Third Edition). These various studies indicate that most public improvements and infrastructure are utilized and impacted at reduced levels by multi-family residential units and a similar reduction in proportional benefit is appropriate. Furthermore, it is also reasonable to conclude that as the density (number of units) increases, the proportional benefit per unit tends to decline because the unit size and people per unit usually decreases.

Based on these considerations and the improvements provided by this District, an appropriate allocation of special benefit for multi-family residential properties as compared to a single- family residential property is best represented by the following special benefit assignment: 0.75 EBU per unit for the first 50 units; 0.50 EBU per unit for units 51 through 100; and 0.25 EBU per unit for the remaining units.
(3) Condominium/Town-home Units — Condominiums and town-homes tend to share attributes of both single-family residential and multi-family residential properties and for this reason are identified as a separate land use classification. Like most single-family residential properties, these properties are not usually considered rental property and generally, the County assigns each unit a separate APN or assessment number. However, condominiums and town-homes often have similarities to multi-family residential properties in that they are generally zoned medium to high density and in some cases may involve multiple units on a single APN. In consideration of these factors, it has been determined that an appropriate allocation of special benefit for condominiums, town-homes and similar residential properties is best represented by an assignment of 0.75 EBU per unit regardless of whether each unit is assigned an individual APN or there are multiple units assigned to an APN. (There is no adjustment for parcels with more than five units). (4) Modified Housing/Senior Housing Units — Modified Housing or Senior Housing is generally defined as residential units that would typically be classified as Condominiums or Town-homes, but have specific deed restrictions that may limit the size or use of all units within the development. This classification is not applicable to individual single-family residential parcels unless all single-family residential parcels within that particular development or subdivision have the same restrictions. 6/9/26 | Item H3 | Attachment 3

Page 99 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Street and Storm Drain Maintenance District No. 03 (De Anza) 13 (For example: One or more single-family units within a subdivision that are deed restricted as “Affordable Housing” or “Senior Housing” does not qualify for this land use classification, unless all the units within that development have the same or similar deed restrictions.) Since this classification generally involves Condominium or Town-home type properties, that are generally assigned 0.75 EBU, it has been determined that an appropriate allocation of special benefit for modified housing units or senior housing units is best represented by an assignment of 0.625 EBU per unit regardless of whether each unit is assigned an individual APN or there are multiple units assigned to a single APN.
(5) Planned-Residential Development — This land use is defined as any property for which a tentative or final tract map has been filed and approved (a specific number of residential lots and units has been identified) and the property is expected to be subdivided within the fiscal year or is part of the overall improvement and development plan for the District. This land use classification often times involves more than a single parcel (e.g. the approved tract map encompasses more than a single APN). Each parcel that is part of the approved tract map shall be assessed proportionately for the proposed or estimated residential type and units to be developed on that parcel as part of the approved tract map. Accordingly, each parcel is assigned an appropriate number of benefit units that reflects the development of that property at build-out. (The EBU assigned to each parcel shall represent the combination of single-family, condominium, multi-family units to be developed). (6) Vacant Residential — This land use is defined as property currently zoned for residential development, but a tentative or final tract map for the property has not yet been approved. Based upon the opinions of professional appraisers who appraise market property values for real estate in California, the land value portion of a property typically ranges from 20 to 30 percent of the total value of a developed residential property (the average is about 25 percent). Although the assessed value of an individual property is not a direct reflection of the property’s special benefit, this general correlation between land value and structure value does provide a reasonable basis for apportioning special benefit for vacant residential properties. Utilizing this twenty-five percent (25%) apportionment and the number of single-family residential units typically developed per acre of land (an average of 4 residential units per acre) an Equivalent Benefit Unit of 1.0 EBU per acre (4 units per acre x 25%) is derived and presents an appropriate apportionment of special benefit for vacant residential properties. Recognizing that the full and timely utilization of vacant property is reduced as the size of the property increases, it has been determined that the maximum EBU assigned to a vacant residential parcel shall not exceed 25.0 EBU (parcels in excess of 25 acres are assigned 25.0 EBU). Parcels less than one acre, shall be assigned a minimum of 1.0 EBU (similar to a vacant lot within a residential tract).
(7) Exempt Parcels — This land use identifies properties that are not assessed and are assigned 0.0 EBU. This land use classification may include but is not limited to:
 Lots or parcels identified as public streets and other roadways (typically not assigned an APN by the County);
 Dedicated public easements including open space areas, utility rights-of- way, greenbelts, parkways, parks or other publicly owned properties that are part of the District improvements or may provide other benefits to private properties within the District.; 6/9/26 | Item H3 | Attachment 3

Page 100 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Street and Storm Drain Maintenance District No. 03 (De Anza) 14  Private properties that cannot be developed independently from an adjacent property, such as common areas, sliver parcels or bifurcated lots or properties with very restrictive development use;
These types of parcels are considered to receive little or no benefit from the improvements and are therefore exempted from assessment, but shall be reviewed annually by the assessment engineer to confirm the parcels current development status. Government owned properties or public properties are not necessarily exempt properties and shall be subject to special benefit assessment unless it qualifies for an exempt status.
(8) Special Cases — In many districts where multiple land use classifications are involved, there are usually one or more properties for which the standard land use classifications do not accurately identify the special benefits received from the improvements. For example, a parcel may be identified as a Vacant Residential property, however only a small percentage of the parcel’s total acreage can actually be developed. In this case, an appropriate calculation would be based on the net acreage that can be utilized rather than the gross acreage of the parcel.

The following table provides a summary of land use classifications and the Equivalent Benefit Unit calculations previously outlined.

Property Type
Equivalent
Benefit Units Multiplier
Single-family Residential 1.00 Per Unit/Lot/Parcel
Multi-family Residential

0.75 Per Unit for the First 50 Units

0.50 Per Unit for Units 51-100

0.25 Per Unit for all Remaining Units
Condominium/Townhome Units 0.75 Per Unit
Modified Housing/Senior Housing Units 0.625 Per Unit
Planned Residential Development

1.00 Per Planned SF Residential Lot

0.75 Per Planned Condominium

0.75 Per Unit for the First 50 Units

0.50 Per Unit for Units 51-100

0.25 Per Unit for all Remaining Units
Vacant Residential Land 1.00 Per Acre
Exempt Parcels 0.00 Per Parcel
The following formula is used to calculate each parcel’s EBU (proportional benefit).

Page 101 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Street and Storm Drain Maintenance District No. 03 (De Anza) 15 Total Balance to Levy / Total EBU = Levy per EBU
Levy per EBU x Parcel EBU = Parcel Levy Amount

Page 102 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Street and Storm Drain Maintenance District No. 03 (De Anza) 16 apportionment that increase the proportional special benefit assigned to a particular land use classification would be considered an increased assessment. Conversely, reductions in the proportional special benefit assigned to a land use classifications is permitted. Changes in land use or size of an individual property resulting in an assessment increase, is not considered an increased assessment.

Page 103 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Street and Storm Drain Maintenance District No. 03 (De Anza) 17

6. ASSESSMENT DIAGRAM
The parcels within the Street and Storm Drain Maintenance District No. 03 (De Anza Estates) consist of the lots, parcels and subdivisions of land located in the residential development known as De Anza Estates, Tract 2498.

The District covers approximately seventy-six acres (75.84 acres) in the northern portion of the City of Atascadero.

Page 104 of 250 ends

City of Atascadero
2026/27 Engineer’s Report – Street and Storm Drain Maintenance District No. 03 (De Anza) 18

Non-assessable lots or parcels may include, but are not limited to public streets and other roadways (typically not assigned an APN by the County); dedicated public easements, open space areas, right-of-ways, common areas; landlocked parcels, small parcels vacated by the County, bifurcated lots, and any other property that cannot be developed or has little or no value. These types of parcels are considered to receive little or no benefit from the improvements and are therefore exempted from assessment.

Page 105 of 250 ends

City of Atascadero
Street & Storm Drain Maintenance No. 3
Final Billing Detail Report for Fiscal Year 2026/27
APN Address Land Use Benefit Units Max Assessment Grand Total 049-044-002 755 N FERROCARRIL RD
Single Family
Residential 1.000 $1,206.8742 681.50
049-044-003 765 N FERROCARRIL RD
Single Family
Residential 1.000 1,206.8742 681.50
049-044-004 805 N FERROCARRIL RD
Single Family
Residential 1.000 1,206.8742 681.50
049-044-005 905 N FERROCARRIL RD
Single Family
Residential 1.000 1,206.8742 681.50
049-044-006 955 N FERROCARRIL RD
Single Family
Residential 1.000 1,206.8742 681.50
049-044-007
1025 N FERROCARRIL
RD
Single Family
Residential 1.000 1,206.8742 681.50
049-044-008
1055 N FERROCARRIL
RD
Single Family
Residential 1.000 1,206.8742 681.50
049-044-009
1155 N FERROCARRIL
RD
Single Family
Residential 1.000 1,206.8742 681.50
049-044-010
1255 N FERROCARRIL
RD
Single Family
Residential 1.000 1,206.8742 681.50
049-044-011
1305 N FERROCARRIL
RD
Single Family
Residential 1.000 1,206.8742 681.50
049-044-012
1355 N FERROCARRIL
RD
Single Family
Residential 1.000 1,206.8742 681.50
049-044-013
1200 N FERROCARRIL
RD
Single Family
Residential 1.000 1,206.8742 681.50
049-044-014
1100 N FERROCARRIL
RD
Single Family
Residential 1.000 1,206.8742 681.50
049-044-015
1000 N FERROCARRIL
RD
Single Family
Residential 1.000 1,206.8742 681.50
049-044-016 950 N FERROCARRIL RD
Single Family
Residential 1.000 1,206.8742 681.50
049-044-017 860 N FERROCARRIL RD
Single Family
Residential 1.000 1,206.8742 681.50
049-044-018 850 N FERROCARRIL RD
Single Family
Residential 1.000 1,206.8742 681.50
049-044-019 870 N FERROCARRIL RD
Single Family
Residential 1.000 1,206.8742 681.50
049-044-020 880 N FERROCARRIL RD
Single Family
Residential 1.000 1,206.8742 681.50
049-044-021 705 DE ANZA CT
Single Family
Residential 1.000 1,206.8742 681.50
049-044-022 725 DE ANZA CT
Single Family
Residential 1.000 1,206.8742 681.50
049-044-023 750 DE ANZA CT
Single Family
Residential 1.000 1,206.8742 681.50
049-044-024 740 DE ANZA CT
Single Family
Residential 1.000 1,206.8742 681.50
049-044-025 720 DE ANZA CT
Single Family
Residential 1.000 1,206.8742 681.50
049-044-026 700 DE ANZA CT
Single Family
Residential 1.000 1,206.8742 681.50
049-044-033 655 N FERROCARRIL RD
Single Family
Residential 1.000 1,206.8742 681.50
049-046-002 503 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-003 505 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-004 507 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-005 509 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 1 of 3 04/08/2026 03:01:25PM 6/9/26 | Item H3 | Attachment 3

Page 106 of 250 ends

City of Atascadero
Street & Storm Drain Maintenance No. 3
Final Billing Detail Report for Fiscal Year 2026/27
APN Address Land Use Benefit Units Max Assessment Grand Total 049-046-006 511 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-007 513 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-008 515 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-009 517 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-010 519 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-011 521 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-012 524 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-013 526 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-014 528 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-015 530 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-016 532 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-017 534 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-018 536 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-019 538 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-020 540 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-021 542 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-022 572 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-023 574 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-024 576 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-025 578 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-026 580 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-027 582 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-028 584 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-029 586 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-030 588 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-031 590 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-032 592 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-033 551 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-034 553 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-035 555 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-036 557 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-037 559 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-038 561 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-039 563 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-040 565 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-041 567 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-042 595 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-043 597 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-044 599 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-045 603 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-046 605 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 049-046-047 601 N FERROCARRIL RD Senior Housing Units 0.625 754.2960 214.04 Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 2 of 3 04/08/2026 03:01:25PM 6/9/26 | Item H3 | Attachment 3

Page 107 of 250 ends

Page 108 of 250 ends

6/9/26 | Item H3| Attachment 4

DRAFT RESOLUTION C

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ATASCADERO, CALIFORNIA, APPROVING THE FINAL ENGINEER’S

REPORT REGARDING THE LANDSCAPING AND LIGHTING
DISTRICT NO. 03 (DE ANZA ESTATES), AND THE LEVY AND

COLLECTION OF ANNUAL ASSESSMENTS RELATED THERETO IN
FISCAL YEAR 2026/2027
WHEREAS, the City Council of the City of Atascadero, California (hereafter referred to as the “City Council”), pursuant to the provisions of Part 2 of Division 15 of the California Streets and Highways Code, did by previous Resolution order the Engineer, NBS, to prepare and file a report in accordance with Article 4 of Chapter 1 of Part 2 of Division 15 of the California Streets and Highways Code, commencing with Section 22500, in connection with the proposed levy for Landscaping and Lighting District No. 03 (De Anza Estates) (hereafter referred to as the “District”) and the collection of assessments related thereto for the fiscal year starting July 1, 2026 and ending June 30, 2027; and
WHEREAS, the Engineer has prepared and filed with the City Clerk of the City of Atascadero and the City Clerk has presented to the City Council such report entitled “Engineer’s Annual Levy Report for the Landscaping and Lighting District No. 03 (De Anza Estates), fiscal year 2026/2027” (hereafter referred to as the “Engineer’s Report”) in accordance with the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the “Act”); and WHEREAS, the City Council has carefully examined and reviewed the Engineer’s Report as presented, and is satisfied with the items and documents as set forth therein, and finds that the levy of assessments has been spread in accordance with the special benefits received from the improvements, operation, maintenance and services to be performed, as set forth in said Engineer’s Report.

NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Atascadero:

SECTION 1. The above recitals are true and correct.

SECTION 2. The Engineer’s Report as presented, consists of the following:
a) Plans and specifications that describe the District and Improvements. b) Method of Apportionment that outlines the special benefit conferred on properties within the District from the improvements and the calculations used to establish each parcel’s proportional special benefit assessment as well as a description of the assessment range formula that establishes the maximum assessment rate in subsequent fiscal years. c) The Budget that outlines the costs and expenses to service and maintain the improvements including incidental expenses authorized by the Act to operate the District.

Page 109 of 250 ends

6/9/26 | Item H3| Attachment 4
d) An Assessment Diagram that identifies the boundaries of the District. e) An Assessment Roll containing each of the Assessor Parcel Numbers that comprise the District and the proportional maximum assessment and annual assessment for fiscal year 2026/2027.

SECTION 3. The Engineer’s Report as presented, is hereby approved, and is ordered to be filed in the Office of the City Clerk as a permanent record and to remain open to public inspection.

SECTION 4. The City Clerk shall certify to the passage and adoption of this Resolution and the minutes of this meeting shall so reflect the adoption and approval of the Engineer’s Report.

PASSED AND ADOPTED at a regular meeting of the City Council held on the 9 th day of
June, 2026.

On motion by Council Member ______ and seconded by Council Member _______, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

CITY OF ATASCADERO:
________________________________
Charles Bourbeau, Mayor
ATTEST:

Lara K. Henderson, City Clerk

Page 110 of 250 ends

6/9/26 | Item H3| Attachment 5

DRAFT RESOLUTION D

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ATASCADERO, CALIFORNIA, ORDERING THE LEVY AND
COLLECTION OF ASSESSMENTS FOR FISCAL YEAR 2026/2027 FOR LANDSCAPING AND LIGHTING DISTRICT NO. 03
(DE ANZA ESTATES)
WHEREAS, the City Council of the City of Atascadero, California (hereafter referred to as City Council) has by previous Resolutions initiated proceedings and declared its intention to levy special benefit assessments against parcels of land within the Landscaping and Lighting District No. 03 (De Anza Estates) (hereafter referred to as the “District”) for fiscal year 2026/2027, said fiscal year commencing July 1, 2026 and ending June 30, 2027; pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code, commencing with Section 22500 (hereinafter referred to as the "Act") to pay the costs and expenses of operation, maintenance, repair and servicing of local landscaping, street lighting and appurtenant facilities related thereto; and WHEREAS, the Engineer selected by the City Council has prepared and filed with the City Clerk, and the City Clerk has presented to the City Council an Engineer’s Report in connection with the proposed levy of special benefit assessments upon eligible parcels of land within the District, and the City Council did by previous Resolution adopt and approve said Engineer’s Report; and WHEREAS, the City Council desires to levy and collect assessments against parcels of land within the District for the fiscal year commencing July 1, 2026 and ending June 30, 2027, to pay the costs and expenses of operation, maintenance, repair and servicing of local landscaping, street lighting, and appurtenant facilities related thereto; and WHEREAS, the City and its legal counsel have reviewed Proposition 218 and found that these assessments comply with applicable provisions of Section XIIID of the California State Constitution.

NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Atascadero:

SECTION 1. Following notice duly given, the City Council has held a full and fair Public Hearing regarding its Resolution approving the Engineer’s Report prepared in connection with the levy and collection of assessments, and considered the oral and written statements, protests and communications made or filed by interested persons.

SECTION 2. Based upon its review of the Engineer’s Report, a copy of which has been presented to the City Council and which has been filed with the City Clerk, the City Council hereby finds and determines that:
a) The land within District will receive special benefit by the operation, maintenance, and servicing of improvements to be provided by the District. b) The net amount to be assessed upon the lands within the District is in accordance and apportioned by a formula and method which fairly distributes the net amount among the eligible parcels in proportion to the special benefit to be received by each parcel from the improvements and services for the fiscal year commencing July 1, 2026, and ending June 30, 2027.

Page 111 of 250 ends

6/9/26 | Item H3| Attachment 5
SECTION 3. The City Council hereby orders the proposed improvements to be made, which improvements are briefly described as the maintenance, operation, administration, and servicing of the improvements that may include, but is not limited to local streetlights, landscaping, parks and open space areas within the District and appurtenant facilities related thereto.

SECTION 5. The City shall deposit the money representing assessments collected by the County for the District to the credit of a fund for the Landscaping and Lighting District No. 03 (De Anza Estates), and such money shall be expended for the maintenance, operation and servicing of the improvements as described in the Engineers Report and generally described in Section 3 of this Resolution.

SECTION 6. The adoption of this Resolution constitutes the levy of assessments for the fiscal year commencing July 1, 2026, and ending June 30, 2027.

SECTION 7. The City Clerk or their designee is hereby authorized and directed to file the levy with the County Auditor, per Sections 22645-22647 of the Act, upon adoption of this Resolution.

PASSED AND ADOPTED at a regular meeting of the City Council held on the 9 th day of
June, 2026.

On motion by Council Member ______ and seconded by Council Member _______, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

CITY OF ATASCADERO:
________________________________
Charles Bourbeau, Mayor
ATTEST:

Lara K. Henderson, City Clerk

Page 112 of 250 ends

Fiscal Year 2026/27 Engineer’s Report For:

Landscaping and Lighting District
No. 03 (De Anza Estates)
May 2026
6/9/26 | Item H3 | Attachment 6

Page 113 of 250 ends

CITY OF ATASCADERO
Landscaping & Lighting District No. 03
(De Anza Estates)

6500 Palma Avenue
Atascadero, CA 93422
Phone – (805) 461-5000
Fax – (805) 461-7612

CITY COUNCIL
Charles Bourbeau, Mayor
Mark Dariz, Mayor Pro Tem
Susan Funk, Council Member
Seth Peek, Council Member
Heather Newsom, Council Member

Page 114 of 250 ends