Agenda Item No: O.3
AGENDA REPORT
DATE: May 20, 2025
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: PW Landscape Oversight Committee Recommendations for a Landscaping and Lighting Maintenance District Proposition 218 Balloting Process
Discussion and Direction Regarding Landscape Oversight Committee Recommendation s for a Landscaping and Lighting Maintenance District Proposition 218 Balloting Process
Funding Source: N/A
Contact: Chris Lewis, (707) 428-7089
RECOMMENDED ACTION
Receive report, open discussion, and provide direction to staff.
STATEMENT OF ISSUE
The Landscape Oversight Committee (LOC) recommends that the City conduct a Proposition 218 balloting process for Landscaping and Lighting Maintenance District (LLMD) No. 5 – Smith Ranch, LLMD No. 7 – Rolling Hills, and any third LLMD for which at least 10% of district property owners provide a written request for a Proposition 218 balloting process.
DISCUSSION
Background
In 2023, the City conducted a community engagement and balloting process in accordance with Article XIII D of the California Constitution (also known as Proposition 218) to increase assessment rates in nine LLMDs that were projected to have a structural budget deficit.
The ballot was passed by property owners in the Gateway and Paradise Valley communities , resulting in the formation of LLMDs No. 2023 -1 (Gateway) and No. 2023 -11 (Paradise Valley).
However, the ballot was not passed by property owners in t he remaining seven LLMDs: No. 3 – Waterman Highlands, No. 5 – Smith Ranch (Rancho Solano), No. 6 – Peppertree, No. 7 – Rolling
Hills, No. 8 – Kolob Estates, No. 12 – Downtown Business District, and No. 13 – North Cordelia.
As a result, services were reduced in these communities.
Some property owners in these districts expressed their concerns to the LOC and the City Council Subcommittee to the LOC (Subcommittee) regarding the declining landscape in their neighborhoods and their desire for another Proposition 218 balloting process to increase their assessment rates.
On January 25, 2025, at the annual City Council Retreat, the council directed staff to pause all LLMD Proposition 218 balloting efforts for these seven districts.
The LOC and Subcommittee held a joint meeting on February 27, 2025, at which 34 members of the public attended. Eight members from these communities submitted public comment cards and requested that the council reconsider the decision on January 25, 2025. The LOC and Subcommittee affirmed their support.
At the March 4, 2025, City Council meeting, Vice Mayor and Subcommittee Member Pam Bertani requested to reconsider the decision agreed upon on January 25, 2025, to pause LLMD Proposition 218 balloting efforts for these seven districts to be added to a future council agenda.
At the April 1, 2025, City Council meeting, the council deliberated on the matter and agreed to consider moving forward with a balloting process for three of the seven districts. Due to limited staffing and City resources, the remaining four districts may be considered for a second balloting process in future years. The council directed the LOC to provide a recommendation of three LLMDs that should be considered for another Proposition 218 balloting process.
LOC Recommendations
At the April 17, 2025, LOC meeting, staff conveyed the council directive to the LOC and provided members with an example timeline to form new replacement LLMDs with increased assessment rates effective fiscal year (FY) 2026-2027. The example timeline provided to the LOC and the 2026 LLMD Proposition 218 Timeline provided in Attachment 2 (Timeline) are nearly identical, except that the request for qualifications (RFQ) related activities listed between May 2025 to July 17, 2025, have been updated in Attachment 2 as new information emerged.
The Timeline allows six months, from September 202 5 through February 2026, for the development of the Engineer’s Reports. An Engineer’s Report is a technical document required by California law that outlines the details of a proposed assessment district and includes a boundary map, a financial analysis of district revenues and expenditures, and describes the methodology for the apportionment of costs to all benefitting parcels.
Approximately one month after the Engineer’s Reports are finalized and released to the public, the City will begin the legislative process on March 3, 2026, by requesting that the council adopt a Resolution of Intent to form new districts and levy assessments in FY 2026-2027. Ballots will be mailed to property owners on March 4, 2026 . A public hearing regarding the formation of the new districts with increased assessment rates will be held on April 21, 2026, and ballot tabulation results will be announced on May 5, 2026. If the ballot for any proposed district is not approved by property owners or the council, the City will begin regular annual proceedings in June 2026 to levy FY 2026-2027 assessments in the respective existing LLMD.
Staff advised the LOC that the Timeline is very similar to the timeline followed during the 2023 Proposition 218 balloting process. While there is sufficient time to develop the Engineer’s Reports and complete all legislative requirements, the LOC may not have sufficient time to conduct the desired level of community engagement activities between the completion/release date of the Engineer’s Reports and the date ballots are mailed to property owners.
While community engagement activities may commence at any time, many property owners stated that engagement was less effective without the Engineer's Reports during the 2023 ballot process. Additionally, many property owners did not think there was enough time (approximately two months) between the release of the Engineer's Reports and the mailing of the ballots to thoroughly consider their options during the 2023 process.
The LOC moved to recommend to the council that LLMD No. 5 – Smith Ranch and LLMD No. 7 – Rolling Hills be considered for a balloting process. The LOC also recommended that a third LLMD be considered if at least 10% of district property owners provide written requests to be included in a balloting process by August 1, 2025.
Staff advised that, upon the council’s approval, the City will move forward with developing the Engineer’s Reports based on the landscaping and lighting maintenance scope of work that was in effect for each district prior to the service reductions in 2020 -2023. Some modifications may apply based on existing conditions and recommendations from th e Landscape Maintenance Manager. If property owners in any proposed district desire other modifications to the scope of work, the LOC must notify the City by July 17, 2025, to allow staff sufficient time to obtain cost estimates. The LOC agreed that change s to district boundaries would likely require in -depth research and an extended and substantial community engagement effort, which is not achievable at this time due to the Timeline.
LLMD No. 13 – North Cordelia Community Meeting
On May 1, 2025, Councilm ember Williams hosted an LLMD No. 13 – North Cordelia community meeting at the Cordelia Library to determine if North Cordelia property owners were interested in participating in a Proposition 218 balloting process to increase their assessment rates. The meeting was attended by approximately 20 North Cordelia property owners, Vice Mayor Bertani, LOC Chair Johnson, LOC Member Smith, and Public Works staff.
City staff presented an overview of the existing district boundaries, scope of work, budget, and assessment rates, the 2023 balloting process, and the proposed balloting process requirements and timeline.
The majority of North Cordelia property owners in attendance agreed to defer a balloting process until they confirm community support through their homeowner’s association networks, district- specific subcommittees (to be formed separate from the LOC), community surveys, and other relevant means of engagement.
Assessment Engineering Consultant Request for Qualifications Upon the council’s approval, the City will release an RFQ to procure an assessment engineering consultant to develop the Engineer’s Reports and assist the City with the Proposition 218 balloting process.
At the April 17, 2025, LOC meeting, staff requested that the LOC appoint two representatives to serve on the ad hoc RFQ Review Panel. The panel will consist of three City staff members and two LOC-appointed representatives. It will be res ponsible for evaluating all RFQ submittals and recommending the most qualified assessment engineering consultant.
The Committee appointed LOC Chair Rick Johnson and Paradise Valley property owner and resident, Carol Haddock. Ms. Haddock is a long -standing and very active member of the LLMD community who frequently participates in relevant community meetings and contributed to the 2023 balloting process as a community engagement working group member.
RFQ submittals will be due to the City by June 17, 2025. The RFQ Review Panel will independently review and score all submittals, then convene on June 25, 2025, to discuss and identify the consultant(s) with the highest scores.
After the consultant selection, staff will negotiate contract terms and bring th e contract to the council for approval in August 2025. The consultant will commence work in September 2025.
Council Direction
Staff requests the council’s direction regarding the LOC’s recommendations that the City conduct a Proposition 218 balloting process for LLMD No. 5 – Smith Ranch, LLMD No. 7 – Rolling Hills, and any third LLMD for which at least 10% of district property owners provide written requests by August 1, 2025, for a Proposition 218 balloting process to form new replacement LLMDs with increased assessment rates effective FY 2026-2027.
FINANCIAL IMPACT
N/A
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
Staff presented the information in this report to the LOC at the April 17, 2025, meeting and to property owners in LLMD No. 13 – North Cordelia at the May 1, 2025, North Cordelia community meeting.
ALTERNATIVE ACTION
The council may choose to request more information from staff or the LOC or take other related actions.
COORDINATED WITH
Landscape Oversight Committee and City Manager’s Office
STAFF CONTACT
Chris Lewis, Sr. Management Analyst
(707) 428-7089
[email protected]
ATTACHMENTS
Attachment 2: 2026 LLMD Proposition 218 Balloting Timeline