Pleasanton City Council
May 21, 2024

money from the General Fund into the specific district fund without involving the county.

The table below lists the assessments to be collected within each district as well as the total expected special revenue and the total available reserves:

LMD Name LMD
Number
Private Property
Assessment x
Number of Parcels
Public Property
Assessment x
Number of
Parcels
Total
Special
Revenue
per year
Total
Available
Reserves
PonderosaDel Prado1984-1 $16.90 x 343
parcels
$16.62 x 1
parcel
$5,813 $84,000
Windsor 1993-1 $269.62 x 90
parcels
N/A $24,266 <$14,000>
Bonde
Ranch
1993-2 $257.22 x 102
parcels
$252.91 x 1
parcel
$26,489 $25,000
Oak Tree
Farm
1994-1 $473.66 x 41
parcels
$465.75 x 1
parcel
$19,886 $72,000
Moller
Ranch
1995-1 $570.06 x 99
parcels
$560.53 x 2
parcels
$57,557 $273,000
The engineer’s budget for each district includes a reserve fund to provide for the replacement of capital improvements such as planting, irrigation, decorative entry walls, signage, light fixtures, etc. Currently, the reserve funds are insufficient to cover these replacement costs.

Furthermore, irrigation systems have been turned off at Bonde Ranch and Oak Tree Farms and portions of Moller Ranch due to numerous needed repairs. The Windsor at Laguna Oaks HOA has accepted the landscape maintenance responsibilities and water costs as a first step to address the depletion of reserves at the Windsor LMD.

Landscape Maintenance District 1984-1, Ponderosa-Del Prado The Ponderosa Homes subdivision (District 1984-1) has been in place for 40 years.

Maintenance in this district includes the care of masonry walls, trees, shrubbery, groundcover and irrigation systems along Paseo Santa Cruz, between Corte Santa Maria and Corte Pacifica. The overall assessments provide enough funding for the maintenance and plant replacement costs in all the special district areas along Paseo Santa Cruz, including water and electrical costs, county administration fees, and City administration fees; however, this amount does not provide adequate funding to cover the emergency repair costs or the capital replacement cost of the irrigation systems, planting in the general benefit area, pruning, masonry walls, and any additional emergency repair services or other required improvements.

This district's fund balance for capital repair and replacement is approximately $84,000. This amount is not enough for several improvements for which replacement must be considered in the near term, including an extensive irrigation system replacement and plant replacement, tree pruning, and other features. Additionally, this amount is insufficient to repair the existing sound wall if it needs repair in the future.

City staff intends to proceed with a Proposition 218-compliant vote this coming fiscal year to request an increase in assessment amount based on the expected funding shortfall for capital improvements, maintenance, electricity, and water costs. The maintenance, water, and electricity costs are projected to cost about $6,700 more than the collected assessment while another $40,000 is necessary for a Proposition 218-compliant vote, thus requiring about $46,700 in reserve fund use. The irrigation system repairs will cut down on leaks and, therefore, unnecessarily high water costs. Staff estimates the annual assessment would need to be increased from $16.90 to $40-$50 (an increase of $2-$3 per month per property), and an annual inflation escalator will be sought for district funding to be self-sustaining. If the Proposition 218-compliant vote does not pass, staff intends to permanently turn off a portion of the irrigation system as a means of cost control.

Landscape Maintenance District 1993-1, Windsor
The Windsor subdivision (District 1993-1) has been in place for 31 years. Maintenance in this district includes masonry walls, trees, shrubbery, groundcover, irrigation systems, entry features and common area drainage ditches along with furnishing all water and electricity for the irrigation system, situated in Lot A, on the northeast side of Tapestry Way and Minton Court, and in the northwest corner of the subdivision, and also Lot C in the southwest corner of the subdivision. The assessments for the coming year are not enough to fund the maintenance of the district areas to the same level as in past years. The county assessment fee will continue to be paid, as will the City administration fee. Due to the increasing cost of water and maintenance services, and because of the aging plant material, irrigation system, and improvements, the cash reserve for the district has been depleted. Major breaks in the irrigation system have led to significant water loss, high water bills, and expensive repairs over the last few years.

Despite a significant reduction in the level of maintenance of the landscaped areas, there is a fund deficit of $14,000 for this district due to the significant irrigation breaks and repairs and the tree and tree limb failures that have occurred over the last few years. The winter storms of 2022/23 especially impacted the trees in the Windsor LMD due to a lack of funding for pruning.

City staff began the process of increasing the assessments for the Windsor LMD in early 2022 by initiating a Proposition 218 discussion about an assessment increase. However, the property owners that attended the neighborhood outreach meeting on February 2, 2022, voiced their desire for the City to undertake more significant outreach prior to conducting a vote. Staff met with owners again on October 18, 2022. The homeowners expressed a desire to have more control over the landscape maintenance and how money was spent but opposed approval of an assessment increase. Staff worked with the HOA Board to pursue an alternative the HOA would approve. The HOA chose to take over the routine plant maintenance and water costs and in February 2024 entered into an agreement with the City to do so. This positive step from the HOA equates to approximately $17,000 annually in cost reductions to the LMD. The other LMD maintenance responsibilities beyond plant care and water costs, such as maintenance of the sound wall, irrigation repairs, tree pruning, etc. would continue to be managed by the City as part of the Windsor LMD.

Although the transfer of the routine LMD maintenance responsibilities and water costs to the Windsor HOA is a significant step toward returning the LMD to a positive fund balance, over the long term an increase in the annual assessment will still be necessary to continue the maintenance standards of the district and replenish the reserve needed to fund eventual

capital repair and replacement costs. Annual assessments would need to be increased from $269.62 to about $360-$400 (an increase of about $8-$10 per month per property), and the inclusion of an inflation escalator will be needed. Additionally, $40,000 would be necessary in the future to conduct a Proposition 218-compliant vote.

Landscape Maintenance District 1993-2, Bonde Ranch
The Bonde Ranch subdivision (District 1993-2) has been in place for 30 years. Maintenance in this district includes entry features, open space areas, firebreaks, trees, shrubbery, groundcover and irrigation systems for the subdivision known as Tracts 6483 and 6518. The assessments are not enough to fund the maintenance of the district areas to the same level as in past years. This amount will fund the district’s reduced maintenance, county assessment fees, and City administration fees but will not fund capital repair or replacement costs.

This district's fund balance for capital repair and replacement is $25,000. This amount is not enough for the significant improvements for which replacement must be considered in the near term.

Despite shutting off the water due to existing leaks in the irrigation system, the fund balance for Bonde Ranch is insufficient for other basic maintenance tasks such as mulch replacement and more extensive fence repair, replacement, and painting. An increase in the annual assessment will be necessary to continue the maintenance standards of the district and replenish the reserve needed to fund eventual capital repair and replacement costs. In 2022, City staff initiated a discussion about increasing the assessments through a Proposition 218-compliant vote. However, the property owners at the neighborhood outreach meeting expressed strong opposition to increasing the assessment, so staff paused this effort.

Capital improvements, maintenance, electricity, and water costs are projected to continue to increase. Weed management consumes over 40 percent of the LMD budget. To return the district to a similar level of maintenance as was intended when the Bonde Ranch LMD was approved, the annual assessments would need to be increased from $257.22 to about $620- $750 (an increase of about $30-$40 per month per property). The inclusion of an inflation escalator would be sought. Additionally, $40,000 would be needed to conduct a Proposition 218-compliant vote.

Landscape Maintenance District 1994-1, Oak Tree Farm
The Oak Tree Farm subdivision (District 1994-1) has been in place for 30 years. Maintenance in this district includes open space areas, entry features, decorative lighting, firebreaks, trees, shrubbery, groundcover and irrigation systems. The assessments are not enough to fund the maintenance of the district areas to the same level as in past years This amount is adequate to fund the reduced maintenance of the district, county assessment fees, City administration fees, and minor district improvements, but not enough to cover any required capital replacement costs or additional emergency repair services. City staff continues to work closely with the maintenance contractor to increase the efficiency of landscape maintenance operations and has shut off water due to leaks in the irrigation system. An increase in the annual assessment will be necessary in the future to continue the maintenance standards of past years.

This district's fund balance for capital repair and replacement is $72,000. This amount is not enough for several improvements for which replacement must be considered in the near term.

The improvements consist of extensive irrigation system replacement and plant replacement,

decorative fence repairs, tree pruning, lighting replacement, and repair or replacement of other features.

Capital improvements, maintenance, and electricity costs are projected to continue to increase.

To return the district to a similar level of maintenance and to address the necessary wildland vegetation management as was intended when the Oak Tree Farm LMD was approved, the annual assessments would need to be increased from $465.75 to about $850-$950 (an increase of about $30-$40 per month per property). The inclusion of an inflation escalator would be sought and $40,000 would be required for a Proposition 218-compliant vote.

Landscape Maintenance District 1995-1, Moller Ranch
The Moller Ranch subdivision (District 1995-1) has been in place for 29 years. Maintenance in this district includes open space areas, entry features, lighting, firebreaks, trees, shrubbery, groundcover and irrigation systems. The assessments will be sufficient to fund the reduced maintenance level of the district including water and electrical costs, county assessment fees, City administration fees, and operating and maintenance costs, but is not enough to increase the capital repair or replacement reserve.

Although this district’s fund balance for capital repair and replacement is $273,000, there are several improvements for which replacement must be considered in the near term. The improvements consist of extensive irrigation system replacement and plant replacement, decorative fence repairs, and repair or replacement of other features. A portion of the irrigation system that waters established plants has been turned off due to numerous breaks.

Several years ago, staff met with the Moller Ranch HOA to discuss increased assessments to meet its repair/replacement capital improvement requirements. While support for an increase in the assessment amount was not overwhelming, the HOA was interested in exploring the cost-benefit aspects of an increase. Further discussions with the Moller Ranch HOA are now planned. Staff has a meeting scheduled with the HOA Board of Directors in May 2024 to discuss a Proposition 218-compliant vote in the upcoming fiscal year to address the funding shortfall projected to be about $21,500. Another $40,000 is necessary for a Proposition 218- compliant vote, totaling $61,500 in projected reserve fund use. Staff estimates that the annual assessment would need to be increased from $560.53 to approximately $700-$800 (an increase of about $10-$20 per month per property). In addition, an annual inflation escalator would be sought.

Increases to Assessments
City staff, in consultation with SCI Consulting Group which specializes in the formation of LMDs, previously began an analysis of potential Proposition 218 compliant votes to increase assessments for the two most underfunded LMDs: Windsor and Bonde Ranch. This effort was paused due to the Bonde Ranch residents’ opposition to the increase at the February 3, 2022, neighborhood outreach meeting. The voting process for the Windsor LMD was also paused based on the input from residents at the February 2, 2022, outreach meeting, and based on the HOA's aforementioned agreement with the City to take over the routine plant maintenance and water costs. For both of these LMDs, the irrigation water has already been turned off to save additional costs. Proposition 218-compliant efforts for Ponderosa and Moller Ranch will proceed in the upcoming fiscal year, as the City is still delivering water to their irrigation systems despite the need for repairs.

The information contained in this report regarding staff’s intention to pursue an increase assessments is informational only with respect to the proposed public hearing on June 18, 2024. Specific action required of the City Council will be presented at a future date.

PUBLIC COMMENT
Staff provides general information to residents within the Landscape and Lighting Maintenance Districts as a part of the public notice for confirmation of the Engineer's Report. This annual notice provides the name and phone number of a staff contact person should questions arise.

If questions are received and answered prior to the public hearing on June 18, 2024, staff will provide the City Council with those questions and staff’s answers at or before the public hearing.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
There is no environmental impact from a change to the assessment or due to maintenance and repair work. Maintenance work within each LMD is categorically exempt from CEQA under Guidelines Section 15302, “Replacement or Reconstruction.”

EQUITY AND SUSTAINABILITY
Not applicable, as this item is a routine matter of City business.

OUTREACH
The City Clerk will send notices to owners of real property within each LMD informing them about the date and time of the public hearing for the City Council to receive any protests concerning the proposed assessments.

STRATEGIC PLAN ALIGNMENT
Approval of this action advances the Citywide ONE Pleasanton strategic plan goal of Funding our Future to support financial health and sound fiscal policies through long-term planning, cost recovery, increased revenue, and cost containment.

FISCAL IMPACT
The LMDs are special assessment districts managed by the City. Each LMD fund can only be spent within the individual LMD where the assessments were collected (i.e., no commingling).

As required by law, the City will continue to incur a fiscal impact for those parcels that provide a “general benefit” and are City-owned. To that end, the City will pay for LMD parcels as follows:

Location Fiscal Impact
Parcel 946-4563-125 (Ponderosa - Del Prado Park) $ 16.62 General benefit area along the Alamo Canal in District 1984-1 (Ponderosa - Del Prado)
$ 9,703.00
Parcel 948-0014-1-39 (water tank site) in District 1993-2 (Bonde Ranch)
$ 252.91
Parcels 941-1803-62 and 941-1801-02 (water tank site and trails staging area) in District 1995-1 (Moller Ranch)
$ 1,121.06

Parcel 946-4585-044 (sewer lift station) in District 1994-1 (Oak Tree Farm)
$ 465.75
Total $11,559.34
Consistent with the prior year's assessments, staff recommends the total of $11,560 be appropriated from the General Fund to the LMDs. The proposed FY 2024/25 budget includes this expense from the General Fund.

Prepared by: Submitted by: Approved by:

Matthew Gruber, Landscape
Architect
Siew-Chin Yeong, Director of Public
Works
Gerry Beaudin, City
Manager
Attachments:

1. Summary Table of Landscaping and Lighting Maintenance Districts

2. Resolution to Approve Engineer’s Report & Assessments (Ponderosa - Del Prado)

3. Resolution to Approve Engineer’s Report & Assessments (Windsor)

4. Resolution to Approve Engineer’s Report & Assessments (Bonde Ranch)

5. Resolution to Approve Engineer’s Report & Assessments (Oak Tree Farm)

6. Resolution to Approve Engineer’s Report & Assessments (Moller Ranch)

Landscape Maintenance Districts (LMD's)
Properties Assessment General Benefit Projected Approx. Reserve Amount to/(from) Anticipated fund District Name in District per Property Annual Revenue Area Revenue Total Revenue Annual Expenditures Balance Reserve Balance 1984-1 Ponderosa (Del Prado) 344 $ 16.90 $ 5,813.32 $ 9,703.00 $ 15,516.32 * $ 62,158.04 $ 84,000.00 $ (46,641.72) $ 37,358.28 1993-1 Windsor 90 $ 269.62 $ 24,265.80 $ - $ 24,265.80 ** $ 14,480.90 $ (14,000.00) $ 9,784.90 $ (4,215.10) 1993-2 Bonde Ranch 103 $ 257.22 $ 26,489.35 $ - $ 26,489.35 $ 26,489.35 $ 25,000.00 $ - $ 25,000.00 1994-1 Oak Tree Farm 42 $ 473.66 $ 19,885.81 $ - $ 19,885.81 *** $ 21,424.31 $ 72,000.00 $ (1,538.50) $ 70,461.50 1995-1 Moller Ranch 101 $ 570.06 $ 57,557.00 $ - $ 57,557.00 * $119,003.47 $ 273,000.00 $ (61,446.47) $211,553.53 * projected annual expenditures are higher than the total revenue to address the Proposition 218-compliant vote and both routine maintenance and potential non-routine maintenance such as pruning, tree removal, and irrigation repairs ** projected annual expenditures are lower than total revenue to contribute to the reduction of the fund balance deficit which is possible due to the recent agreement with the HOA to accept some maintenance responsibilities *** projected annual expenditures are higher than the total revenue to address both routine maintenance and potential non-routine maintenance such as pruning and tree removal

SUMMARY TABLE

RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON

DECLARING THE INTENTION TO ORDER IMPROVEMENTS FOR THE LIGHTING & LANDSCAPE MAINTENANCE DISTRICT NO. 1984-1 PONDEROSA FOR FISCAL YEAR 2024/25; DECLARING THE INTENTION TO CONTINUE THE LEVY AND COLLECTION ASSESSMENTS; AND SETTING THE DATE FOR THE PUBLIC

HEARING
WHEREAS, as required by Section 22622 of the California Streets and Highways Code, the City Council of the City of Pleasanton has described proposed improvements to be included for the determination of annual assessments levied for Lighting and Landscape Maintenance District No. 1984-1 Ponderosa, created under the Lighting & Landscape Act of 1972, and ordered the preparation of an Engineer’s Report to determine the annual levy of assessments for such District; and
WHEREAS, as required by Section 22622 of the California Streets and Highways Code, the Engineer has filed with the City Clerk a Preliminary Engineer’s Report for the Lighting & Landscape Maintenance District No. 1984-1 Ponderosa for Fiscal Year 2024/25.

NOW, THEREFORE BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES RESOLVE, DECLARE, DETERMINE, AND ORDER THE FOLLOWING:

SECTION 1. The City Engineer is designated by this Council as the Engineer of Work for Lighting & Landscape Maintenance District No. 1984-1, Ponderosa, during fiscal year 2024/25. The area of land to be assessed is located in the City of Pleasanton, Alameda County.

SECTION 2. The City Council intends to continue to levy and collect assessments within Lighting & Landscape Maintenance District No. 1984-1, Ponderosa, during fiscal year 2024/25.

SECTION 3. The improvements to be made in this assessment district are generally described as follows:

Maintenance of a landscaped strip north of Corte de Flores on the west side of Paseo Santa Cruz and north of Corte Pacifica on the east side of Paseo Santa Cruz and the landscaped area on the east side of the Arroyo de la Laguna trail between the Pleasanton Canal and Arroyo del Valle.

SECTION 4. In accordance with this resolution directing the filing of an annual report, the City Engineer has filed with the City Clerk the report required by the Landscaping and

Lighting Act of 1972. All interested persons are referred to that report for a full and detailed description of the improvements, the boundaries of the assessments upon assessable lots and parcels of land within the assessment district.

SECTION 5. On Tuesday, the 18th day of June 2024, at the hour of 7 p.m., the City Council will conduct a public hearing on the question of the levy of the proposed annual assessment. The Council meeting will be held in accordance with Government Code Section 54954(e). To improve access to public information, residents may access meetings remotely through the City’s website.

SECTION 6. The City Clerk is authorized and directed to give the notice of hearing required by the Landscaping and Lighting Act of 1972.

SECTION 7. City Clerk shall certify to the passage of this resolution and enter it into the book of original resolutions.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Pleasanton at a regular meeting held on May 21, 2024.

I, Jocelyn Kwong, City Clerk of the City of Pleasanton, California, certify that the foregoing resolution was adopted by the City Council at a regular meeting held on the 21st day of May 2024 by the following vote:

Ayes:

Noes:

Absent:

Abstain:
_____________________________
Jocelyn Kwong, City Clerk
APPROVED AS TO FORM:
___________________________
Daniel Sodergren, City Attorney

i

CITY OF PLEASANTON
Landscape Maintenance District No. 1984-1, Ponderosa
Engineer’s Report
Fiscal Year 2024-25
May 2024
Pursuant to the Landscaping and Lighting Act of 1972, government code and article XIIID of the California Constitution

EXHIBIT A

ii
City of Pleasanton
Landscape Maintenance District No. 1984-1, Ponderosa Engineer’s Report, Fiscal Year 2024-25 (This page intentionally left blank)

i
City of Pleasanton
Mayor and City Council
Karla Brown, Mayor
Julie Testa, Vice Mayor
Valerie Arkin, Councilmember
Jack Balch, Councilmember
Jeff Nibert, Councilmember
City Manager
Gerry Beaudin
City Engineer
Adam Nelkie

ii
City of Pleasanton
Landscape Maintenance District No. 1984-1, Ponderosa Engineer’s Report, Fiscal Year 2024-25 Table of Contents
PAGE NO.

Introduction .......................................................................................................................................... 1 Overview ............................................................................................................................................... 1 Landscape Maintenance District No. 1984-1, Ponderosa ................................................................. 1 Engineer’s Report and Continuation of Assessments........................................................................ 2 Legal Requirements ........................................................................................................................... 3 Plans & Specifications ........................................................................................................................ 4 Introduction......................................................................................................................................... 4 Ponderosa Description of Improvements........................................................................................... 5 Recommended Capital Improvements............................................................................................... 6 Estimate of Cost and Budget – Fiscal Year 2024-25........................................................................ 7 Notes to Estimate ............................................................................................................................... 7 Method of Assessment Apportionment ............................................................................................ 9 Method of Apportionment ................................................................................................................... 9 Discussion of Benefits ........................................................................................................................ 9 General vs. Special Benefits ............................................................................................................11 Calculating General Benefit and Special Benefit Paid from Other Funds .......................................12 Zones of Benefit................................................................................................................................16 Method of Assessment.....................................................................................................................17 Residential Properties ......................................................................................................................18 Other Properties ...............................................................................................................................18 The Assessment Rate does not Increase Annually .........................................................................18 Appeal of Assessments Levied to Property .....................................................................................18 Assessment Funds Must be Expended Within the Maintenance District Area................................19 Assessment........................................................................................................................................20 Certificates Page................................................................................................................................22 Assessment Diagram ........................................................................................................................23 Assessment Roll FY 2024-25 – Landscape Maintenance District No. 1984-1 Ponderosa .........24

iii
City of Pleasanton
Landscape Maintenance District No. 1984-1, Ponderosa Engineer’s Report, Fiscal Year 2024-25 List of Figures
Figure 1 – Estimate of Costs and Revenues..................................................................................... 7 Figure 2 – Summary Cost Estimate – Ponderosa LMD No. 1984-1 ..............................................20 Figure 3 – Assessment Roll FY 2024-25 – Ponderosa LMD No. 1984-1 .......................................24

1 Introduction
Overview
The City of Pleasanton (“City”) is located in Alameda County, and covers an area of

24.3 square miles, with over 24,500 assessor parcels, and approximately 80,000 residents. The City currently has five Landscape Maintenance Districts (“Districts”) that provide services to a combined total of 680 parcels:
• 1984-1 Ponderosa (Del Prado) – 344 parcels
• 1993-1 Windsor – 90 parcels
• 1993-2 Bonde Ranch – 103 parcels
• 1994-1 Oak Tree Farm – 42 parcels
• 1995-1 Moller Ranch – 101 parcels
The five District’s benefit assessments were established prior to the approval of Proposition 218 in 1996. The purpose of these Districts is to provide funding for the installation, maintenance and servicing of local landscaping and lighting improvements (“Improvements”) within each District’s service area.

Landscape Maintenance District No. 1984-1, Ponderosa
Assessment Background
The Ponderosa Landscape Maintenance District No. 1984-1 (“District 1984-1” or “Maintenance District”) was formed in 1984 as a Condition of Approval for the Ponderosa development, to fund certain landscape improvements within the Ponderosa subdivision.

The Ponderosa single-family residential project was approved in two phases, October 1983 and January 1985. The Ponderosa Landscape Maintenance District No. 1984-1 has a total of 344 parcels, 343 are single family residences, and 1 parcel is owned by the City, which is the location of Del Prado Park.

The Ponderosa Landscape Maintenance District No. 1984-1 purpose is to fund the maintenance of the existing Ponderosa subdivision landscaping, trees, shrubbery, groundcover, irrigation systems and soundwalls in the area north of Corte Flores on the west side of Paseo Santa Cruz, and north of Corte Pacifica on the east side of Paseo Santa Cruz.

District 1984-1 is funded by the benefit assessment approved in 1984 (“Assessment”), and it does not receive any direct revenues from property taxes or any other funding sources. The fiscal year 2024-25 assessments for District 1984-1 will remain at the same assessment rate of $16.90 per parcel per year. With a total of 344 parcels in the District, the fiscal year 2024-25 total assessment will be $5,813.32.

2 City of Pleasanton
Landscape Maintenance District No. 1984-1, Ponderosa Engineer’s Report, Fiscal Year 2024-25 Over the years, operational costs and utility costs have increased, however the assessment revenues have remained the same. The fiscal year 2024-25 total assessment revenue will not be sufficient to fund the maintenance of all common areas, including water costs, county assessment fees, city administration fees, replacement of plantings, irrigation systems, and other district improvements. The Engineer’s Report projects a shortage that will require the City to reduce landscape maintenance and water use so that maintenance costs remain below assessments.

An increase in the annual assessment will be necessary to meet the maintenance standards of the District into the future. The city can no longer subsidize staff administration time or the consultant fees for a Proposition 218-compliant vote. The consultant fees for the Proposition 218-compliant vote will cost approximately $40,000 and will come out of the reserve fund. Water costs, which require a significant portion of the LMD budget, increased thirty percent starting in calendar year 2024, are scheduled to be increased another twelve percent in 2025, and are projected to continue to increase in future years to pay for necessary infrastructure and treatment costs.

The rate increases will have a significant impact to the LMD budget and continued cuts in maintenance will be required to pay for the increased water and maintenance costs.

The landscape will continue to decline well below the necessary maintenance standards of the district established by Ordinances 1102 and 1174. This can open the district up to fines or litigation. To limit liability for the district, staff is pursuing a Proposition 218- compliant vote for 2025/26. It will be necessary for the city to continue to pursue a proposition 218-compliant vote, incurring significant consultant costs each time, until a sustainable assessment has been agreed to by property owners.

If additional funding from a new or increased assessment is not implemented, the City will be forced to continue to reduce maintenance and postpone facilities upgrades, resulting in a continuing deterioration of the grounds and facilities.

Engineer’s Report and Continuation of Assessments
Each year for which the assessments will be continued, the City Council must direct the preparation of an Engineer's Report, budgets, and proposed assessments for the upcoming fiscal year. After the Engineer's Report is completed, the City Council may preliminarily approve the Engineer's Report and proposed assessments and establish the date for a public hearing on the continuation of the assessments. This Report was prepared pursuant to the direction of the City Council.

This Engineer’s Report ("Report") was prepared to establish the budget for the continued maintenance, improvements, and services (“Improvements”) that would be funded by the proposed fiscal year 2024-25 assessments, determine the benefits received by property from the Improvements, and the method of assessment apportionment to lots and parcels within the Maintenance District. This Report and the proposed assessments have been made pursuant to the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code ("Act") and Article XIIID of the California Constitution (“Article”).

3 City of Pleasanton
Landscape Maintenance District No. 1984-1, Ponderosa Engineer’s Report, Fiscal Year 2024-25 If the City Council approves this Engineer's Report and the continuation of the assessments by resolution, a notice of public hearing must be published in a local paper at least 10 days prior to the date of the public hearing. The resolution preliminarily approving the Engineer's Report and establishing the date for a public hearing is used for this notice.

Following the minimum 10-day period after publishing the notice, a public hearing is held for the purpose of allowing public testimony about the proposed continuation of the assessments. This hearing is currently scheduled for June 18, 2024. At this hearing, the City Council would consider approval of a resolution confirming the continuation of the assessments for fiscal year 2024-25. If so confirmed and approved, the assessments would be submitted to the County Auditor/Controller for inclusion on the property tax rolls for Fiscal Year 2024-25.

Legal Requirements
Proposition 218
The City of Pleasanton’s five Landscape Maintenance Districts were formed prior to the passage of Proposition 218, “The Right to Vote on Taxes Act,” which was approved by the voters of California on November 6, 1996 and is now Article XIIIC and XIIID of the California Constitution. (Proposition 218 provides for benefit assessments to be levied to fund the cost of providing services, improvements, as well as maintenance and operation expenses to a public improvement which benefits the assessed property).

Although these assessments are consistent with Proposition 218, the California judiciary has generally referred to pre-Proposition 218 assessments as “grandfathered assessments” and held them to a lower standard than post Proposition 218 assessments.

The existing Assessment Districts will be re-assessed consistent with the procedures and requirements imposed by Proposition 218, which describes several important requirements, including property-owner balloting and approval for the imposition of new or increased assessments.

This Engineer’s Report is consistent with the requirements of Article XIIIC and XIIID of the California Constitution because the Improvements to be funded are clearly defined, the Improvements are directly available to and directly benefit property in the Maintenance District, and the Improvements provide a direct advantage to property in the Maintenance District that would not be received in absence of the assessments.

4 City of Pleasanton
Landscape Maintenance District No. 1984-1, Ponderosa Engineer’s Report, Fiscal Year 2024-25 Plans & Specifications
Introduction
The work and Improvements to be undertaken by the City of Pleasanton within the Landscape Maintenance District No. 1984-1, Ponderosa, and the costs thereof paid from the levy of the annual assessments, provide special benefit to Assessor Parcels within the Maintenance District as defined in the Method of Assessment herein.

The Landscaping and Lighting Act of 1972 (Streets & Highways Code § 22525 et seq.), (the “Act”), defines improvement, maintenance, servicing, and incidental expenses as follows:
“Improvement” means one or any combination of the following:

The installation or planting of landscaping.

The installation or construction of statuary, fountains, and other ornamental structures and facilities.
installation or construction of public lighting facilities, including, but not limited to, traffic signals.
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, including, but not limited to, grading, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities.

The installation of park or recreational improvements, including, but not limited to, all of the following:
preparation, such as grading, leveling, cutting and filling, sod, landscaping, irrigation systems, sidewalks, and drainage.

Lights, playground equipment, play courts, and public restrooms.

The maintenance or servicing, or both, of any of the foregoing, and of any improvement authorized by subdivision (i).

The acquisition of land for park, recreational, or open-space purposes.

The acquisition of any existing improvement otherwise authorized pursuant to this section.

The acquisition or construction of any community center, municipal auditorium or hall, or similar public facility for the indoor presentation of performances, shows, stage productions, fairs, conventions, exhibitions, pageants, meetings, parties, or other group events, activities, or functions, whether those events, activities, or functions are public or private. “Maintain” or “maintenance” means the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including:

Repair, removal, or replacement of all or any part of any improvement. for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury.

5 City of Pleasanton
Landscape Maintenance District No. 1984-1, Ponderosa Engineer’s Report, Fiscal Year 2024-25 The removal of trimmings, rubbish, debris, and other solid waste.

The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti.
“Service” or “servicing” means the furnishing of:

Electric current or energy, gas, or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements.

Water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other improvements.
“Incidental expenses” include all of the following:

The costs of preparation of the report, including plans, specifications, estimates, diagram, and assessment.

The costs of printing, advertising, and the giving of published, posted, and mailed notices.

Compensation payable to the county for collection of assessments.

Compensation of any engineer or attorney employed to render services in proceedings pursuant to this part.

Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements.

Any expenses incidental to the issuance of bonds or notes pursuant to Section 22662.5.

Costs associated with any elections held for the approval of a new or increased assessment.

The City of Pleasanton’s work and Improvements (“Improvements”) for the property within the Maintenance District that is owned or maintained by the City of Pleasanton, are consistent with these definitions. Plans and specifications for these Improvements are filed with the City of Pleasanton Landscape Architect and are incorporated herein by reference.

Ponderosa Description of Improvements
The improvements which are the subject of this Report are briefly described as follows:

Landscaping, including trees, shrubs and irrigation system all as delineated on the landscape and irrigation plans for Tract 5256 (Phase III Landscape Maintenance District 1984-1) and Tract 4986 (Arroyo de la Laguna Improvements).

Said improvements are within the following areas:

North of Corte de Flores on the west side of Paseo Santa Cruz approximately 160 feet long by 6 feet wide, and north of Corte Pacifica on the east side of Paseo Santa Cruz approximately 1,370 feet long by 6 feet wide.

Plans and specifications for the improvements to this Landscape Maintenance District are those prepared by The Environmental Center, dated October 30, 1984, and January

6 City of Pleasanton
Landscape Maintenance District No. 1984-1, Ponderosa Engineer’s Report, Fiscal Year 2024-25 13, 1986. These plans and specifications have been filed separately with the City Clerk of the legislative body and are incorporated in this Report by reference.

Recommended Capital Improvements
Improvements in Landscape Maintenance District No. 1984-1, Ponderosa, are overdue for much needed upgrades and repairs. However, the Maintenance District reserve fund balance is insufficient to make these improvements.

The City drafted a schedule of recommended capital improvement projects that need to be addressed, such as the replacement of the irrigation system and planting improvements, and their respective estimated cost, as well as a planned replacement/renovation schedule. To fund the necessary capital improvements, fund the approved and projected water rate increases, and maintain the District to a similar level to when the District was created staff estimates that the annual assessments would need to be increased from $16.90 to around $40 - 50 depending on level of maintenance.The City intends to begin efforts with the property owners and consultant to develop the level of maintenance and recommended capital improvements in 2025- 26 to create a comprehensive maintenance and improvement plan and associated costs in preparation of a 2025-26 Proposition 218-compliant vote.

7 City of Pleasanton
Landscape Maintenance District No. 1984-1, Ponderosa Engineer’s Report, Fiscal Year 2024-25 Estimate of Cost and Budget – Fiscal Year 2024-25
The following budget shows the estimate of cost of the Improvements to be funded by the Maintenance District in Fiscal Year 2024-25.

Figure 1 – Estimate of Costs and Revenues
City of Pleasanton
Landscape Maintenance District No. 1984-1, Ponderosa
2024-25 Estimate of Costs
Budget
Installation, Maintenance, and Servicing Costs
Landscaping (maintenance)
Basic maintenance $2,600.00
Other maintenancei $7,332.00
Extra workii $5,000.00
Water – All planting $5,000.00
Power – One controller $330.00
Total for Installation, Maintenance and Servicing $20,262.00 Incidental and Administration Costsiii
City of Pleasanton Assessment Administration $1,800.00
County Fees for Collection of Assessment
Proposition 218-compliant voting process
$96.04
$40,000.00
Total Incidental and Administrative Costs $41,896.04
Amount to/(from) Reserve Fundiv
Reserve/Long-term Replacement Fund for scheduled long-term replacement of various district improvements ($46,641.72) General Fund Contribution for General Benefitsv ($9,703) Total Costs $5,813.32
Budget Allocation to Property
Single Family
Number of Equivalent Assessment Total
Parcels/Units Units (SFE)vi Rate Assessmentvii
344 344 $16.90 $5,813.32
Explanation of Annual Assessment Rate per Unit:
343 units @ $16.90 assessment per year (= $16.62 + $0.28 County Collection Fee) 1 unit @ $16.62 assessment per year (City parcel, savings of the $0.28 County Collection Fee) Notes to Estimate
i. Cost for the routine maintenance of the general benefit area paid for by the City of Pleasanton

8 City of Pleasanton
Landscape Maintenance District No. 1984-1, Ponderosa Engineer’s Report, Fiscal Year 2024-25 ii. Contingency to address maintenance that is not routine in nature, such as repair or replacement of broken irrigation valves and lines or pruning/removing failed trees or tree limbs. iii. Incidental and administration cost estimates include City staff hours dedicated to the administration of the assessment (including staff time to bid work, monitor contracts and contractors, respond to residents’ inquiries, etc.), county charges for inclusion of assessments on property tax bills, and other incidental costs. iv. At the time of this report a fund balance of approximately $84,000 remains for Landscape Maintenance District 1984-1. The projected 2024-25 expenses, if current maintenance levels and water use were maintained, are higher than the projected annual revenues. Therefore, and since the fund balance will not be sufficient to cover this gap, the City will need to reduce maintenance and water use to begin to return the account to a balanced budget. Reserve/replacement funds are held in an interest-bearing account until needed for repairs to the irrigation system, landscaping or other District features. v. The City will make a contribution of $9,703 from the General Fund for the cost of maintenance of the “general benefit” area along Arroyo, that was at one time included in this district. vi. The rate shown here is for a single-family home or its equivalent. For the definition of the term Single Family Equivalent (SFE) and rates for other types of property, see the section titled, “Method of Assessment” and the sections following it in this report.
vii. The Act requires that proceeds from the assessments must be deposited into a special fund that has been set up for the revenues and expenditures of the Maintenance District. Moreover, funds raised by the assessment shall be used only for the purposes stated within this Report. Any balance remaining at the end of the Fiscal Year, June 30, must be carried over to the next Fiscal Year. The District may also establish a reserve fund for contingencies and special projects as well as a capital improvement fund for accumulating funds for larger capital improvement projects or capital renovation needs. Any remaining balance would either be placed in the reserve fund, the capital improvement fund, or would be used to reduce future years' assessments. The Landscape Maintenance District 1984-1 reserve/replacement funds are held in an interest-bearing account until needed for repairs to the irrigation system, landscaping or other District features.

9 City of Pleasanton
Landscape Maintenance District No. 1984-1, Ponderosa Engineer’s Report, Fiscal Year 2024-25 Method of Assessment Apportionment
Method of Apportionment
This section of the Engineer's Report includes an explanation of the benefits to be derived from the installation, maintenance and servicing of Improvements and landscaping for the Maintenance District and the methodology used to apportion the total assessment to the properties within the Maintenance District.

The method used for apportioning the assessment is based upon the relative special benefits to be derived by the properties in the Maintenance District over and above general benefits conferred on real property or to the public at large. The assessment is apportioned to lots and parcels in proportion to the relative cost of the special benefits from the Improvements. Special benefit is calculated for each parcel in the Maintenance District using the following process:
i. Identification of all benefit factors derived from the Improvements. ii. Calculation of the proportion of these benefits that are general. iii. Determination of the relative special benefit per property type. iv. Calculation of the specific assessment for each individual parcel based upon special vs. general benefit, location, property type, property characteristics, improvements on property and other supporting attributes.

The parcels within the Landscape Maintenance District No. 1984-1, Ponderosa, consist of all Assessor Parcels within the boundaries as defined by the Assessment Diagram included within this Report and the Assessor Parcel Numbers listed within the included Assessment Roll. The method used for apportioning the assessments is based upon the proportional special benefits to be derived by the properties in the Maintenance District, over and above general benefits conferred on real property or to the public at large.

The apportionment of special benefit is a two-step process: the first step is to identify the types of special benefit arising from the Improvements, and the second step is to allocate the assessments to property based on the estimated relative special benefit for each type of property.

Discussion of Benefits
The assessments can only be levied based on the special benefit to property. This benefit is received by property over and above any general benefits. With reference to the requirements for assessments, Section 22573 of the Landscaping and Lighting Act of 1972 states:
"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."

10 City of Pleasanton
Landscape Maintenance District No. 1984-1, Ponderosa Engineer’s Report, Fiscal Year 2024-25 Proposition 218, as codified in Article XIIID of the California Constitution, has confirmed that assessments must be based on the special benefit to property:
"No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel." In this case, the 2008 Silicon Valley Taxpayers Association, Inc. vs Santa Clara County Open Space Authority (“SVTA”) decision provides enhanced clarity to the definition of special benefits to properties from similar public improvements in three distinct areas:
i. Proximity
ii. Expanded or improved access
iii. Views
The SVTA decision also clarifies that a special benefit is a service or improvement that provides a direct advantage to a parcel, and that indirect or derivative advantages resulting from the overall public benefits from a service or improvement are general benefits.

Proximity, improved access and views, in addition to the other special benefits listed herein further strengthen the basis of these assessments.

The following benefit categories summarize the types of special benefit to residential and other lots and parcels resulting from installation, maintenance and servicing of landscaping, irrigation, sidewalks, signs, lights, and other improvements to be provided with the assessment proceeds. These categories of special benefits are derived from the statutes passed by the California Legislature and studies which describe the types of special benefit received by property from maintenance and improvements such as those provided by the City of Pleasanton, Landscape Maintenance District No. 1984-1, Ponderosa. These types of special benefit are summarized as follows:
i. Improved access to landscaped areas and other permanent public improvements ii. Proximity to improved landscaped areas and other permanent public improvement.
iii. Improved views.
iv. Extension of a property’s outdoor areas and landscaped areas for properties within close proximity to the Improvements.
v. Creation of individual lots for residential use that, in absence of the assessments, would not have been.

The above benefit factors, when applied to property in the Maintenance District, specifically increase the utility and usefulness of the property within the Maintenance District. For example, the assessments will provide funding to improve and maintain the public landscaping next to the parcels within the Maintenance District. Such improved and well-maintained landscaping enhances the overall quality, desirability, utility and safety of the properties.

11 City of Pleasanton
Landscape Maintenance District No. 1984-1, Ponderosa Engineer’s Report, Fiscal Year 2024-25 General vs. Special Benefits
Article XIIID, Section 4(a) of the California Constitution requires any local agency proposing to increase or impose a benefit assessment to “separate the general benefits from the special benefits conferred on a parcel.” The rationale for separating special and general benefits is to ensure that property owners subject to the benefit assessment are not paying for general benefits. Property may be assessed to fund improvements to the extent of the special benefits conferred by the Improvements; but general benefits are not assessable. Accordingly, a separate estimate of the special and general benefit is given in this section.

Article XIIID never defines the term “general benefit.” The definition of special benefit in Section 2(i) includes the statement that general enhancement of property value does not constitute special benefit. General benefit may be described as “an indirect, derivative advantage” resulting from the improvements. One infers from Article XIIID that all benefit is either general or special.

In other words:

Total
Benefit = General Benefit
+ Special
Benefit
There is no widely accepted or statutory formula for quantifying the amount of any general benefit that is identified.

In this Report, the general benefit is first identified, generously estimated, and then budgeted so that it is funded, as required by Proposition 218, by sources other than the Assessment.

A formula to estimate the general benefit is listed below:

General
Benefit =
Benefit to Real
Property Outside the
Assessment District
+
Benefit to Real Property Inside
the Assessment District that is
Indirect and Derivative
+
Benefit to
the Public
at Large
Special benefit, on the other hand, is defined in the California constitution as “a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large”. A special benefit is conferred to a property if the property “receives a direct advantage from the improvement (e.g., proximity to setback landscaping).” In the Maintenance District, as noted, properties have close and unique proximity, views of and access to the Improvements, and uniquely improved utility and desirability from the Improvements, and other properties and the public at large do not receive such benefits because they do not have proximity, access to or views of the Improvements. Therefore, the overwhelming proportion of the benefits conferred to property is special, and only minimal general benefit is conferred on property outside the Maintenance District or to the public at large.

12 City of Pleasanton
Landscape Maintenance District No. 1984-1, Ponderosa Engineer’s Report, Fiscal Year 2024-25 This Engineer’s Report includes a specific, quantified calculation of general benefits, as described below, that is based in part on the use by people outside of the Maintenance District. Moreover, the proportionality of the Assessments to the special benefits conferred on each parcel, based in large part on proximity, is established as well.

Calculating General Benefit and Special Benefit Paid from Other Funds In this section, the total general benefit, which must be paid from other non-assessment funds, is conservatively estimated, quantified, described, and separated, and then budgeted to absolutely ensure that it is funded by sources other than this assessment.

Benefit to Property Outside the Maintenance District = 1.9% In summary, real property located within the boundaries of the Maintenance District distinctly and directly benefit from closer proximity, access and views of the Improvements funded by the Assessments, the creation of developable parcels, and from the extension of usable land area provided by the assessments. The Improvements are specifically designed to serve local properties in the Maintenance District, not other properties nor the public at large.

The Maintenance District has been narrowly drawn to include those parcels that receive a direct advantage from the Improvements. The public at large and other properties outside the Maintenance District receive only limited benefits from the Improvements because they do not have proximity, good access or views of the Improvements. These are special benefits to property in the Maintenance District in much the same way that sewer and water facilities, sidewalks and paved streets enhance the utility and desirability of specific proximate properties and make them more functional to use, safer and easier to access.

Properties within the proposed Maintenance District receive almost all the special benefits from the Improvements because properties in the Maintenance District enjoy unique and close proximity and access to the Improvements that are enjoyed less by other properties or the public at large. The landscaping Improvements are specifically designed to benefit the properties in the Maintenance District.

Furthermore, there are multiple, proximate open space, landscaped areas, and other improvements outside of the Maintenance District, funded by other sources, that provide most of the open space and landscaping benefits to nearby parcels that are outside of the Maintenance District.

In other words, the landscaping Improvements maintained by the proposed Assessments specially benefit the properties within the Maintenance District, but other nearby improvements primarily benefit other proximate properties.

Nonetheless, there are certain properties that are outside the boundaries of the Maintenance District that may benefit from the landscape improvements. A total of no more than 6 proximate parcels have been identified that receive some special benefit from the improvements including improved views, proximity and/or

13 City of Pleasanton
Landscape Maintenance District No. 1984-1, Ponderosa Engineer’s Report, Fiscal Year 2024-25 access, but do not receive extension of outdoor areas nor the special benefit of parcel creation. Since these adjacent properties only receive a 3 of the 5 major special benefits, a 60% factor is applied.

Total General Benefit to Properties Outside of the District = 1.9% Assumptions
11 parcels outside and adjacent to the District
344 parcels in the Maintenance District
Calculation
General Benefit to Property outside the Improvement District = (11 / (11 + 344)) * 60% = 1.9 %
Although it can reasonably be argued that Improvements inside, but near the Maintenance District boundaries are offset by similar landscape improvements provided outside, we use the more generous approach of finding that 1.9% of the Improvements may be of benefit to property outside of the Maintenance District.

Benefit to Property Inside the District that is Indirect and Derivative = 0.0% The “indirect and derivative” benefit to property within the Maintenance District is particularly difficult to calculate. A solid argument can be presented that all benefit within the Maintenance District is special because the Improvements are clearly “over and above” and “particular and distinct” when compared with the unique proximity, access and views of the Improvements enjoyed by benefiting properties in the Maintenance District.

Nevertheless, the SVTA decision indicates that there may be general benefit “conferred on real property located in the district.” A measure of the general benefits to property within the Maintenance District is the percentage of land area within the Maintenance District that is publicly owned, open to the public, and used for regional purposes such as major roads, rail lines, hospitals, and other regional facilities because such properties, while physically within the Maintenance District, are used for regional purposes and could provide indirect benefits to the public at large. In this case, essentially 0% of the land area is used for such regional purposes.

Benefit to the Public at Large = 10%
The general benefit to the public at large can be estimated by the proportionate amount of time that the Maintenance District’s public landscaped areas and facilities are used and enjoyed by individuals who are not residents, employees, customers, or property owners in the Assessment Area. Based on surveys and research in which visitors to similar landscape, open space and parks, at various times of the day, evening, and week, were asked to look at a District map and to identify whether they lived or worked within the City, less than 5% of the use of

14 City of Pleasanton
Landscape Maintenance District No. 1984-1, Ponderosa Engineer’s Report, Fiscal Year 2024-25 similar landscape, open space, parks or recreation areas is by the public at large.

When people outside the Maintenance District use landscape, open space, parks, or recreation areas, they diminish the availability of such facilities for people within the Maintenance District. Therefore, another 5% of general benefits are allocated for people within the Maintenance District. Combining these two elements of general benefit, we find that 10% of the benefits from the Improvements are general benefits to the public at large.

Total General Benefits to be Financially Contributed from Other Funds =

11.9%
Using a sum of these three measures of general benefit, we find that approximately 11.9% of the benefits conferred by the Improvements may be general in nature and should be funded by sources other than the Assessments.

General Benefit Calculation

1.9% (Outside the Maintenance District)
+ 0.0% (Inside the Maintenance District – indirect and derivative) + 10.0% (Public at Large)
= 11.9% (Total General Benefit)
Source of Financial Contributions from Other Funds to Satisfy the 11.9% Requirement
The general benefit contribution is paid in part from other “in-kind”, non-monetary contributions from the City in the form of infrastructure critical to the continued maintenance of the Maintenance District Improvements, as described below.

Also, general benefit contributions come from the “annuity” value of the improvements that were constructed by the developer.

The City of Pleasanton owns, maintains, rehabilitates, and replaces the curb and gutter along the border of the Maintenance District. This curb and gutter serve to support, contain, retain, manage irrigation flow and growth, and provide a boundary for the Improvements. The contribution from the City of Pleasanton toward general benefit from the maintenance, rehabilitation, and replacement of the curb and gutter is conservatively estimated to be 10%, based upon the relative cost to construct and maintain this critical local infrastructure. In other words, if the Maintenance District were required to construct and maintain the local curb and gutter, the budget would increase by at least 10%.

The City of Pleasanton owns and maintains a storm drainage system along the border of the Maintenance District. This system serves to prevent flooding and associated damage to the improvements and to manage urban runoff including local pollutants loading from the improvements. The contribution from the City of Pleasanton toward general benefit from the maintenance, rehabilitation, and

15 City of Pleasanton
Landscape Maintenance District No. 1984-1, Ponderosa Engineer’s Report, Fiscal Year 2024-25 replacement of the local storm drainage system is conservatively estimated to be 10%, based upon the relative cost to construct and maintain this critical local infrastructure. In other words, if the Maintenance District were required to construct and maintain the local storm drainage system, the budget would increase by at least 10%.

The City of Pleasanton owns and maintains local public streets throughout the Maintenance District. These public streets provide access to the Improvements for its enjoyment as well as efficient maintenance. The contribution from the City of Pleasanton toward general benefit from the maintenance, rehabilitation, and replacement of the local public streets is conservatively estimated to be 10%, based upon the relative cost to construct and maintain this critical local infrastructure. In other words, if the Maintenance District were required to construct and maintain the local public streets, the budget would increase by at least 10%.

The value of the initial Improvements constructed by the Developer can be quantified and monetized as an annuity to be amortized. Since the initial Improvements were performed and paid for by non-assessment funds, this “annuity” can be used to offset general benefit costs and is conservatively estimated to contribute 20%. In other words, if the Maintenance District were required to construct all the Improvements, the annual budget would increase by at least 20%.

In other words, there is a 11.9% contribution needed to offset the general benefits conferred by the Improvements, and there is a 50% contribution from City of Pleasanton supporting local infrastructure, along with the amortized value of initial construction. This 50% contribution more than satisfies the general benefit requirements.

The estimates used above for the City of Pleasanton’s “in-kind,” non-monetary contributions for the maintenance, rehabilitation and replacement of the curbs and gutters, storm drainage systems, local streets (the “supportive infrastructure”), and the value of the initial Improvements constructed by the Developer, are based on industry standards; typical and standard quantity ratios between this supportive infrastructure (including the City’s relative associated maintenance costs) and similar Improvements; and on the assessment Engineer’s professional experience on planning and working in such projects.

The City will also make a contribution of $9,703 from the General Fund for the cost of maintenance of the “general benefit” area along Arroyo, that was at one time included in this district.

16 City of Pleasanton
Landscape Maintenance District No. 1984-1, Ponderosa Engineer’s Report, Fiscal Year 2024-25 Source of Contributions from Other Funds to Satisfy 11.9% Requirement City non-monetary contributions:

10.0% (Curb and gutter)
+ 10.0% (Storm drainage system)
+ 10.0% (Public roads)
+ 20.0% (Amoritized value of initial construction)
= 50.0% (Total General Benefit paid from Other Funds)
City Monetary Contributions
+ $9,703 General Fund contribution for maintenance of area along Arroyo Zones of Benefit
The boundaries of the Assessment Area are carefully drawn to only include the properties that are proximate to the Improvements and that would materially benefit from the Improvements.

In SVTA, the court noted that even a local agency-wide assessment district is appropriate under the right conditions:
“Thus, if an assessment district is narrowly drawn, the fact that a benefit is conferred throughout the district does not make it general rather than special. In that circumstance, the characterization of a benefit may depend on whether the parcel receives a direct advantage from the improvement (e.g., proximity to a park) or receives an indirect, derivative advantage resulting from the overall public benefits of the improvement (e.g., general enhancement of the district's property values).”
The court therefore acknowledged the appropriateness of a District-wide assessment so long as each parcel receives a direct advantage from the assessment-funded improvement or service. As demonstrated in this Report, each parcel in the Maintenance District receives a direct advantage and special benefit from the Improvements.

In the Maintenance District, the advantage that each parcel receives from the Improvements is direct, and the boundaries are narrowly drawn to include only parcels that benefit from the Assessment. Therefore, the even spread of assessment throughout the narrowly drawn district is indeed consistent with the SVTA decision. The benefits from the Improvements within the Maintenance District do not vary further based on proximity of the parcels to the Improvements because the increased benefits of greater proximity to the Improvements are generally offset by a parallel increase in

17 City of Pleasanton
Landscape Maintenance District No. 1984-1, Ponderosa Engineer’s Report, Fiscal Year 2024-25 negative factors such as higher levels of traffic, noise, etc. that comes with increased proximity.

Consequently, since all parcels in the Maintenance District have good access and proximity to the Improvements and the benefits to relatively closer proximity are offset by other factors, additional proximity is not considered to be a factor in determining benefit within the Maintenance District. Therefore, zones of benefit are not justified or needed within the Maintenance District.

Method of Assessment
As previously discussed, the Assessments provide comprehensive Improvements that clearly confers direct and special benefits to properties in the Maintenance District.

The allocation of special benefits to property is primarily based on the type of property and the size of property. These benefits can also partially be measured by the occupants on property in the Maintenance District because such parcel population density is a measure of the relative benefit a parcel receives from the Improvements. It should be noted that many other types of “traditional” assessments also use parcel population densities to apportion the assessments. For example, the assessments for sewer systems, roads and water systems are typically allocated based on the population density of the parcels assessed. Therefore, the apportionment of benefit is reasonably based on the type of parcel, the size of parcels and the population density of parcels.

A critical step in apportioning assessments is to determine the relative special benefit for each property. This process involves determining the relative benefit received by each property in relation to a single-family home, or, in other words, on the basis of Single-Family Equivalent (SFE) units. This SFE methodology is commonly used to distribute assessments in proportion to estimated special benefit and is generally recognized as providing the basis for a fair and appropriate distribution of assessments.

For the purposes of this Engineer’s Report, all properties are designated an SFE value, which is each property’s relative benefit in relation to a single-family home on one parcel. In this case, the "benchmark" property is the single family detached dwelling which is one Single Family Equivalent unit or one SFE.

Finally, the special benefits to be derived from the Assessments will be conferred on property and are not based on a specific property owner’s use of the Improvements, a specific property owner’s occupancy of property, or the property owner’s demographic status such as age or number of dependents. The benefits derived to property are related to the average number of people who could potentially live on, work at, or otherwise could occupy a property, not how the property is currently used by the present owner. Therefore, the number of people who could, or potentially, live on, work at, or otherwise occupy a property is one indicator of the relative level of benefit received by a property.

18 City of Pleasanton
Landscape Maintenance District No. 1984-1, Ponderosa Engineer’s Report, Fiscal Year 2024-25 In conclusion, the Assessment Engineer determined that the appropriate method of assessment apportionment should be based on the type of property, the relative size of the property, property location, its relative population, and its proximity to the landscaping and open space facilities. This method is further described below.

Residential Properties
The Ponderosa development is a residential single family development project consisting of a total of 344 parcels, 343 single family home parcels, and 1 City owned parcel that is the location of Del Prado Park. As such, each residential property receives similar benefit from the proposed Improvements.

Therefore, the Engineer has determined that the appropriate method of apportionment of the benefits derived by all parcels is on a dwelling unit or single-family residence basis. All improved properties, or properties proposed for development, are assigned one Single Family Equivalent unit or 1 SFE factor equal to the number of dwelling units developed or planned for the property.

Other Properties
Article XIIID stipulates that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the Assessment.

All properties that are specially benefited are assessed. Other publicly owned property that is used for purposes similar to private residential, commercial, industrial, or institutional uses is benefited and assessed at the same rate as such privately owned property.

Miscellaneous, small, and other parcels such as roads, right-of-way parcels, and common areas typically do not generate significant numbers of employees, residents, customers, or guests, who would have access to or use the Improvements. These miscellaneous parcels therefore receive no benefit from the Improvements and are assessed an SFE benefit factor of 0 SFEs.

The Assessment Rate does not Increase Annually
It should also be noted that the Maintenance District assessment rates cannot be increased annually, and the total revenues remain the same year after year, assessing $16.90 per SFE or parcel, which is the maximum authorized assessment. In order to increase the annual assessment rate or to add an annual Consumer Price Index escalator to the assessment rate, approval of the property owners is required via a Proposition 218 assessment ballot proceeding.

Appeal of Assessments Levied to Property
Any property owner who feels that the assessment levied on their property is in error as a result of incorrect information being used to apply the foregoing method of assessment may file a written appeal with the City of Pleasanton City Engineer or his or her designee. Any such appeal is limited to correction of an assessment during the then

19 City of Pleasanton
Landscape Maintenance District No. 1984-1, Ponderosa Engineer’s Report, Fiscal Year 2024-25 current Fiscal Year and applicable law. Upon the filing of any such appeal, the City of Pleasanton City Engineer or his or her designee will promptly review the appeal and any information provided by the property owner. If the City of Pleasanton City Engineer or his or her designee finds that the assessment should be modified, the appropriate changes shall be made to the Assessment Roll. If any such changes are approved after the Assessment Roll has been filed with the County for collection, the City Engineer or his or her designee is authorized to refund to the property owner the amount of any approved reduction.

Assessment Funds Must be Expended Within the Maintenance District Area The net available Assessment funds, after incidental, administrative, financing, and other costs, shall be expended exclusively for Improvements within the boundaries of the Maintenance District and appropriate incidental and administrative costs as defined in the Plans and Specifications section.

20 City of Pleasanton
Landscape Maintenance District No. 1984-1, Ponderosa Engineer’s Report, Fiscal Year 2024-25 Assessment
WHEREAS, the City of Pleasanton City Council directed the undersigned Engineer of Work to prepare and file a report presenting an estimate of costs, a diagram for the Maintenance District, and an assessment of the estimated costs of the Improvements upon all assessable parcels within the Maintenance District; NOW, THEREFORE, the undersigned, by virtue of the power vested in me under the Act, Article XIIID of the California Constitution, and the order of the City Council of the City of Pleasanton, hereby makes the following assessment to cover the portion of the estimated cost of the Improvements, and the costs and expenses incidental thereto to be paid by the Maintenance District.

The amount to be paid for said Improvements and the expense incidental thereto, to be paid by the Maintenance District for the Fiscal Year 2024-25 is generally as follows:

Figure 2 – Summary Cost Estimate – Ponderosa LMD No. 1984-1 Budget Item Budgeted
Cost
Installation, Maintenance, and Servicing Costs $20,262.00 Incidental and Administration Costs $41,896.04
Amount to/(from) Reserve Fund $(46,641.72)
General Fund contribution for General Benefits $(9,703.00) Total Budget $5,813.32
As required by the Act, an Assessment Diagram showing the exterior boundaries of the Maintenance District is hereto attached and incorporated herein by reference. The distinctive number of each parcel or lot of land in the Maintenance District is its Assessor Parcel Number appearing on the Assessment Roll.

I do hereby assess and apportion the net amount of the cost and expenses of the Improvements, including the costs and expenses incident thereto, upon the parcels and lots of land within the Maintenance District, in accordance with the special benefits to be received by each parcel or lot, from the Improvements, and more particularly set forth in the Estimate of Cost and Method of Assessment in the Report.

21 City of Pleasanton
Landscape Maintenance District No. 1984-1, Ponderosa Engineer’s Report, Fiscal Year 2024-25 The Assessment is made upon the parcels or lots of land within the Maintenance District in proportion to the special benefits to be received by the parcels or lots of land, from the Improvements.

The Maintenance District’s assessment rate for fiscal year 2024-25 remains unchanged at the same assessment rate used last year of $16.90 per single family equivalent (SFE) benefit unit.

Each parcel or lot of land is described in the Assessment Roll by reference to its parcel number as will be shown on the Assessor's Maps of Alameda County for the Fiscal Year 2024-25. For a more particular description of the property, reference is hereby made to the deeds and maps on file and of record in the office of the County Recorder of the County.

I hereby will place opposite the Assessor Parcel Number for each parcel or lot within the Assessment Roll, the amount of the assessment for the Fiscal Year 2024-25 for each parcel or lot of land within the Maintenance District.

City Engineer/Engineer of Work
By:

Adam M. Nelkie, License No. C78830

22 City of Pleasanton
Landscape Maintenance District No. 1984-1, Ponderosa Engineer’s Report, Fiscal Year 2024-25 Certificates Page
LANDSCAPE MAINTENANCE DISTRICT 1984-1, PONDEROSA CITY OF

PLEASANTON, ALAMEDA COUNTY, CALIFORNIA
(Pursuant to the Landscaping and Lighting Act of 1972)
The undersigned respectfully submits the enclosed Engineer's Report and does hereby certify that this Engineer's Report and the Assessment have been prepared by me as directed by the City Council.

Adam M. Nelkie, City Engineer, License No. 78830
City of Pleasanton, Alameda County, California
By:

I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment and Assessment Diagram thereto attached, was filed with me on the _________day of______________, 2024.

Jocelyn Kwong, City Clerk
City of Pleasanton, Alameda County, California
By:

I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment and Assessment Diagram thereto attached, was approved and confirmed by the City Council of the City of Pleasanton, Alameda County, California, on the ______________day of____________, 2024.

Jocelyn Kwong, City Clerk
City of Pleasanton, Alameda County, California
By:

I HEREBY CERTIFY that a certified copy of the enclosed Engineer's Report, including Assessment Roll and Assessment Diagram was filed with the County Auditor of the County of Alameda, on the ______________day of_______________, 2024.

Jocelyn Kwong, City Clerk
City of Pleasanton, Alameda County, California
By:

23 City of Pleasanton
Landscape Maintenance District No. 1984-1, Ponderosa Engineer’s Report, Fiscal Year 2024-25 Assessment Diagram
The Maintenance District includes all properties within the Ponderosa subdivision, as displayed on the following Assessment Diagram. The lines and dimensions of each lot or parcel within the Maintenance District are those lines and dimensions as shown on the maps of the Assessor of Alameda County for Fiscal Year 2024-25, and are incorporated herein by reference, and made a part of this Diagram and this Report.

24 City of Pleasanton
Landscape Maintenance District No. 1984-1, Ponderosa Engineer’s Report, Fiscal Year 2024-25 Assessment Roll FY 2024-25 - Ponderosa LMD No. 1984-1

ASSESSMENT ASSESSOR'S ASSESSMENT COLLECTION
DIAGRAM NO. PARCEL NUMBER AMOUNT
CHARGE
.017 TOTAL
1 946-4556-010 $16.62 $0.28 $16.90
2 946-4556-009 16.62 0.28 16.90
3 946-4556-008 16.62 0.28 16.90
4 946-4556-007 16.62 0.28 16.90
5 946-4556-006 16.62 0.28 16.90
6 946-4556-005 16.62 0.28 16.90
7 946-4556-004 16.62 0.28 16.90
8 946-4556-003 16.62 0.28 16.90
9 946-4556-011 16.62 0.28 16.90
10 946-4556-012 16.62 0.28 16.90
11 946-4556-013 16.62 0.28 16.90
12 946-4556-014 16.62 0.28 16.90
13 946-4556-015 16.62 0.28 16.90
14 946-4556-016 16.62 0.28 16.90
15 946-4556-017 16.62 0.28 16.90
16 946-4556-018 16.62 0.28 16.90
17 946-4556-019 16.62 0.28 16.90
18 946-4556-020 16.62 0.28 16.90
19 946-4556-021 16.62 0.28 16.90
20 946-4556-031 16.62 0.28 16.90
21 946-4556-032 16.62 0.28 16.90
22 946-4556-033 16.62 0.28 16.90
23 946-4556-034 16.62 0.28 16.90
24 946-4556-035 16.62 0.28 16.90
25 946-4556-036 16.62 0.28 16.90
26 946-4556-037 16.62 0.28 16.90
27 946-4556-038 16.62 0.28 16.90
28 946-4556-039 16.62 0.28 16.90
29 946-4556-040 16.62 0.28 16.90
30 946-4556-041 16.62 0.28 16.90
31 946-4556-042 16.62 0.28 16.90
32 946-4556-043 16.62 0.28 16.90
33 946-4556-044 16.62 0.28 16.90
34 946-4556-045 16.62 0.28 16.90
35 946-4556-046 16.62 0.28 16.90
36 946-4556-047 16.62 0.28 16.90
37 946-4556-048 16.62 0.28 16.90
38 946-4556-049 16.62 0.28 16.90
39 946-4556-050 16.62 0.28 16.90
40 946-4556-051 16.62 0.28 16.90
41 946-4556-052 16.62 0.28 16.90
42 946-4556-053 16.62 0.28 16.90
43 946-4556-054 16.62 0.28 16.90

25 City of Pleasanton
Landscape Maintenance District No. 1984-1, Ponderosa Engineer’s Report, Fiscal Year 2024-25 44 946-4556-055 16.62 0.28 16.90
45 946-4556-056 16.62 0.28 16.90
46 946-4556-057 16.62 0.28 16.90
47 946-4556-058 16.62 0.28 16.90
48 946-4556-059-2 16.62 0.28 16.90
49 946-4556-060-2 16.62 0.28 16.90
50 946-4556-061 16.62 0.28 16.90
51 946-4556-062 16.62 0.28 16.90
52 946-4556-063 16.62 0.28 16.90
53 946-4556-064 16.62 0.28 16.90
54 946-4556-065 16.62 0.28 16.90
55 946-4556-066 16.62 0.28 16.90
56 946-4556-030 16.62 0.28 16.90
57 946-4556-029 16.62 0.28 16.90
58 946-4556-028 16.62 0.28 16.90
59 946-4556-067 16.62 0.28 16.90
60 946-4556-068 16.62 0.28 16.90
61 946-4556-069 16.62 0.28 16.90
62 946-4556-070 16.62 0.28 16.90
63 946-4556-071 16.62 0.28 16.90
64 946-4556-072 16.62 0.28 16.90
65 946-4556-073-1 16.62 0.28 16.90
66 946-4556-074-1 16.62 0.28 16.90
67 946-4556-075 16.62 0.28 16.90
68 946-4556-076 16.62 0.28 16.90
69 946-4556-077 16.62 0.28 16.90
70 946-4556-078 16.62 0.28 16.90
71 946-4556-079 16.62 0.28 16.90
72 946-4556-027 16.62 0.28 16.90
73 946-4556-026 16.62 0.28 16.90
74 946-4556-025 16.62 0.28 16.90
75 946-4556-082 16.62 0.28 16.90
76 946-4556-083 16.62 0.28 16.90
77 946-4556-084 16.62 0.28 16.90
78 946-4556-085 16.62 0.28 16.90
79 946-4556-086 16.62 0.28 16.90
80 946-4556-087-1 16.62 0.28 16.90
81 946-4556-088-1 16.62 0.28 16.90
82 946-4556-089 16.62 0.28 16.90
83 946-4556-090 16.62 0.28 16.90
84 946-4556-091 16.62 0.28 16.90
85 946-4556-092 16.62 0.28 16.90
86 946-4556-093 16.62 0.28 16.90
87 946-4556-024 16.62 0.28 16.90
88 946-4556-023 16.62 0.28 16.90
89 946-4556-022 16.62 0.28 16.90
90 946-4556-094 16.62 0.28 16.90
91 946-4556-097 16.62 0.28 16.90
92 946-4556-098 16.62 0.28 16.90
93 946-4556-099 16.62 0.28 16.90

26 City of Pleasanton
Landscape Maintenance District No. 1984-1, Ponderosa Engineer’s Report, Fiscal Year 2024-25 94 946-4556-100 16.62 0.28 16.90
95 946-4556-101 16.62 0.28 16.90
96 946-4556-102-1 16.62 0.28 16.90
97 946-4556-104-1 16.62 0.28 16.90
98 946-4556-105 16.62 0.28 16.90
99 946-4556-106 16.62 0.28 16.90
100 946-4556-107 16.62 0.28 16.90
101 946-4556-108 16.62 0.28 16.90
102 946-4562-040-1 16.62 0.28 16.90
103 946-4562-039 16.62 0.28 16.90
104 946-4562-038 16.62 0.28 16.90
105 946-4562-037 16.62 0.28 16.90
106 946-4562-036 16.62 0.28 16.90
107 946-4562-004 16.62 0.28 16.90
108 946-4562-003 16.62 0.28 16.90
109 946-4562-001 16.62 0.28 16.90
110 946-4562-005 16.62 0.28 16.90
111 946-4562-007 16.62 0.28 16.90
112 946-4562-010-1 16.62 0.28 16.90
113 946-4562-011 16.62 0.28 16.90
114 946-4562-013 16.62 0.28 16.90
115 946-4562-014 16.62 0.28 16.90
116 946-4562-015 16.62 0.28 16.90
117 946-4562-016 16.62 0.28 16.90
118 946-4562-045 16.62 0.28 16.90
119 946-4562-044 16.62 0.28 16.90
120 946-4562-043 16.62 0.28 16.90
121 946-4562-042 16.62 0.28 16.90
122 946-4562-041-1 16.62 0.28 16.90
123 946-4562-050-1 16.62 0.28 16.90
124 946-4562-049 16.62 0.28 16.90
125 946-4562-048 16.62 0.28 16.90
126 946-4562-047 16.62 0.28 16.90
127 946-4562-046 16.62 0.28 16.90
128 946-4562-017 16.62 0.28 16.90
129 946-4562-018 16.62 0.28 16.90
130 946-4562-019 16.62 0.28 16.90
131 946-4562-020 16.62 0.28 16.90
132 946-4562-021 16.62 0.28 16.90
133 946-4562-022 16.62 0.28 16.90
134 946-4562-023 16.62 0.28 16.90
135 946-4562-024 16.62 0.28 16.90
136 946-4562-025 16.62 0.28 16.90
137 946-4562-055 16.62 0.28 16.90
138 946-4562-054 16.62 0.28 16.90
139 946-4562-053 16.62 0.28 16.90
140 946-4562-052 16.62 0.28 16.90
141 946-4562-051-1 16.62 0.28 16.90
142 946-4562-060 16.62 0.28 16.90
143 946-4562-059 16.62 0.28 16.90

27 City of Pleasanton
Landscape Maintenance District No. 1984-1, Ponderosa Engineer’s Report, Fiscal Year 2024-25 144 946-4562-058 16.62 0.28 16.90
145 946-4562-057 16.62 0.28 16.90
146 946-4562-056 16.62 0.28 16.90
147 946-4562-026 16.62 0.28 16.90
148 946-4562-027 16.62 0.28 16.90
149 946-4562-028 16.62 0.28 16.90
150 946-4562-029 16.62 0.28 16.90
151 946-4562-030 16.62 0.28 16.90
152 946-4562-031 16.62 0.28 16.90
153 946-4562-032 16.62 0.28 16.90
154 946-4562-033 16.62 0.28 16.90
155 946-4562-065 16.62 0.28 16.90
156 946-4562-064 16.62 0.28 16.90
157 946-4562-063 16.62 0.28 16.90
158 946-4562-062 16.62 0.28 16.90
159 946-4562-061-1 16.62 0.28 16.90
160 946-4562-066 16.62 0.28 16.90
161 946-4562-067 16.62 0.28 16.90
162 946-4562-068 16.62 0.28 16.90
163 946-4562-069 16.62 0.28 16.90
164 946-4562-070 16.62 0.28 16.90
165 946-4563-001 16.62 0.28 16.90
166 946-4563-002-1 16.62 0.28 16.90
167 946-4563-004-1 16.62 0.28 16.90
168 946-4563-005 16.62 0.28 16.90
169 946-4563-006 16.62 0.28 16.90
170 946-4563-007 16.62 0.28 16.90
171 946-4563-008 16.62 0.28 16.90
172 946-4563-009 16.62 0.28 16.90
173 946-4563-010 16.62 0.28 16.90
174 946-4563-011-2 16.62 0.28 16.90
175 946-4563-012-1 16.62 0.28 16.90
176 946-4563-013 16.62 0.28 16.90
177 946-4563-014 16.62 0.28 16.90
178 946-4563-015 16.62 0.28 16.90
179 946-4563-016 16.62 0.28 16.90
180 946-4563-017-1 16.62 0.28 16.90
181 946-4563-018-1 16.62 0.28 16.90
182 946-4563-019 16.62 0.28 16.90
183 946-4563-020 16.62 0.28 16.90
184 946-4563-021 16.62 0.28 16.90
185 946-4563-022 16.62 0.28 16.90
186 946-4563-023 16.62 0.28 16.90
187 946-4563-024 16.62 0.28 16.90
188 946-4563-025 16.62 0.28 16.90
189 946-4563-026 16.62 0.28 16.90
190 946-4563-027 16.62 0.28 16.90
191 946-4563-028 16.62 0.28 16.90
192 946-4563-029 16.62 0.28 16.90
193 946-4563-030-1 16.62 0.28 16.90

28 City of Pleasanton
Landscape Maintenance District No. 1984-1, Ponderosa Engineer’s Report, Fiscal Year 2024-25 194 946-4563-031-1 16.62 0.28 16.90
195 946-4563-032 16.62 0.28 16.90
196 946-4563-033 16.62 0.28 16.90
197 946-4563-034 16.62 0.28 16.90
198 946-4563-035 16.62 0.28 16.90
199 946-4563-036 16.62 0.28 16.90
200 946-4563-037 16.62 0.28 16.90
201 946-4563-038-1 16.62 0.28 16.90
202 946-4563-039-3 16.62 0.28 16.90
203 946-4563-040-2 16.62 0.28 16.90
204 946-4563-041 16.62 0.28 16.90
205 946-4563-042 16.62 0.28 16.90
206 946-4563-043 16.62 0.28 16.90
207 946-4563-044 16.62 0.28 16.90
208 946-4563-045 16.62 0.28 16.90
209 946-4563-046 16.62 0.28 16.90
210 946-4563-047 16.62 0.28 16.90
211 946-4563-048 16.62 0.28 16.90
212 946-4563-049 16.62 0.28 16.90
213 946-4563-050 16.62 0.28 16.90
214 946-4563-051 16.62 0.28 16.90
215 946-4563-052 16.62 0.28 16.90
216 946-4563-053 16.62 0.28 16.90
217 946-4563-054 16.62 0.28 16.90
218 946-4563-055 16.62 0.28 16.90
219 946-4563-056 16.62 0.28 16.90
220 946-4563-057 16.62 0.28 16.90
221 946-4563-058-3 16.62 0.28 16.90
222 946-4563-060-2 16.62 0.28 16.90
223 946-4563-061 16.62 0.28 16.90
224 946-4563-062 16.62 0.28 16.90
225 946-4563-063 16.62 0.28 16.90
226 946-4563-064 16.62 0.28 16.90
227 946-4563-065 16.62 0.28 16.90
228 946-4563-066 16.62 0.28 16.90
229 946-4563-067 16.62 0.28 16.90
230 946-4563-068 16.62 0.28 16.90
231 946-4563-069 16.62 0.28 16.90
232 946-4563-070 16.62 0.28 16.90
233 946-4563-071 16.62 0.28 16.90
234 946-4563-072 16.62 0.28 16.90
235 946-4563-073 16.62 0.28 16.90
236 946-4563-074 16.62 0.28 16.90
237 946-4563-075 16.62 0.28 16.90
238 946-4563-076 16.62 0.28 16.90
239 946-4563-077 16.62 0.28 16.90
240 946-4563-078-2 16.62 0.28 16.90
241 946-4563-079-1 16.62 0.28 16.90
242 946-4563-080 16.62 0.28 16.90
243 946-4563-082 16.62 0.28 16.90

29 City of Pleasanton
Landscape Maintenance District No. 1984-1, Ponderosa Engineer’s Report, Fiscal Year 2024-25 244 946-4563-083 16.62 0.28 16.90
245 946-4563-084 16.62 0.28 16.90
246 946-4563-085 16.62 0.28 16.90
247 946-4563-086 16.62 0.28 16.90
248 946-4563-087 16.62 0.28 16.90
249 946-4563-088 16.62 0.28 16.90
250 946-4563-089 16.62 0.28 16.90
251 946-4563-090 16.62 0.28 16.90
252 946-4563-091 16.62 0.28 16.90
253 946-4563-092 16.62 0.28 16.90
254 946-4563-093 16.62 0.28 16.90
255 946-4563-094 16.62 0.28 16.90
256 946-4563-095 16.62 0.28 16.90
257 946-4563-096 16.62 0.28 16.90
258 946-4563-097 16.62 0.28 16.90
259 946-4563-130 16.62 0.28 16.90
260 946-4563-129 16.62 0.28 16.90
261 946-4563-128 16.62 0.28 16.90
262 946-4563-127 16.62 0.28 16.90
263 946-4563-126 16.62 0.28 16.90
264 946-4563-140 16.62 0.28 16.90
265 946-4563-141 16.62 0.28 16.90
266 946-4563-142 16.62 0.28 16.90
267 946-4563-143 16.62 0.28 16.90
268 946-4563-182 16.62 0.28 16.90
269 946-4563-183 16.62 0.28 16.90
270 946-4563-146 16.62 0.28 16.90
271 946-4563-147 16.62 0.28 16.90
272 946-4563-148 16.62 0.28 16.90
273 946-4563-149 16.62 0.28 16.90
274 946-4563-150 16.62 0.28 16.90
275 946-4563-151 16.62 0.28 16.90
276 946-4563-152 16.62 0.28 16.90
277 946-4563-153 16.62 0.28 16.90
278 946-4563-154 16.62 0.28 16.90
279 946-4563-113 16.62 0.28 16.90
280 946-4563-112 16.62 0.28 16.90
281 946-4563-111 16.62 0.28 16.90
282 946-4563-110 16.62 0.28 16.90
283 946-4563-109 16.62 0.28 16.90
284 946-4563-108 16.62 0.28 16.90
285 946-4563-107 16.62 0.28 16.90
286 946-4563-106 16.62 0.28 16.90
287 946-4563-105 16.62 0.28 16.90
288 946-4563-104 16.62 0.28 16.90
289 946-4563-103 16.62 0.28 16.90
290 946-4563-102 16.62 0.28 16.90
291 946-4563-101 16.62 0.28 16.90
292 946-4563-100 16.62 0.28 16.90
293 946-4563-099 16.62 0.28 16.90

30 City of Pleasanton
Landscape Maintenance District No. 1984-1, Ponderosa Engineer’s Report, Fiscal Year 2024-25 294 946-4563-098 16.62 0.28 16.90
295 946-4563-120 16.62 0.28 16.90
296 946-4563-121 16.62 0.28 16.90
297 946-4563-122 16.62 0.28 16.90
298 946-4563-123 16.62 0.28 16.90
299 946-4563-134 16.62 0.28 16.90
300 946-4563-133 16.62 0.28 16.90
301 946-4563-132 16.62 0.28 16.90
302 946-4563-131 16.62 0.28 16.90
303 946-4563-139 16.62 0.28 16.90
304 946-4563-138 16.62 0.28 16.90
305 946-4563-137 16.62 0.28 16.90
306 946-4563-136 16.62 0.28 16.90
307 946-4563-135 16.62 0.28 16.90
308 946-4563-114 16.62 0.28 16.90
309 946-4563-115 16.62 0.28 16.90
310 946-4563-116 16.62 0.28 16.90
311 946-4563-117 16.62 0.28 16.90
312 946-4563-118 16.62 0.28 16.90
313 946-4563-119 16.62 0.28 16.90
314 946-4563-155 16.62 0.28 16.90
315 946-4563-156 16.62 0.28 16.90
316 946-4563-157 16.62 0.28 16.90
317 946-4563-158 16.62 0.28 16.90
318 946-4563-159 16.62 0.28 16.90
319 946-4563-160 16.62 0.28 16.90
320 946-4563-161 16.62 0.28 16.90
321 946-4563-162 16.62 0.28 16.90
322 946-4563-163 16.62 0.28 16.90
323 946-4563-164 16.62 0.28 16.90
324 946-4563-165 16.62 0.28 16.90
325 946-4563-166 16.62 0.28 16.90
326 946-4563-167 16.62 0.28 16.90
327 946-4563-168 16.62 0.28 16.90
328 946-4563-169 16.62 0.28 16.90
329 946-4563-170 16.62 0.28 16.90
330 946-4563-171 16.62 0.28 16.90
331 946-4563-172 16.62 0.28 16.90
332 946-4563-173 16.62 0.28 16.90
333 946-4563-174 16.62 0.28 16.90
334 946-4563-175 16.62 0.28 16.90
335 946-4563-176 16.62 0.28 16.90
336 946-4563-177 16.62 0.28 16.90
337 946-4563-178 16.62 0.28 16.90
338 946-4563-179 16.62 0.28 16.90
339 946-4563-180 16.62 0.28 16.90
340 946-4562-071 16.62 0.28 16.90
341 946-4562-072 16.62 0.28 16.90
342 946-4562-073 16.62 0.28 16.90
343 946-4562-074 16.62 0.28 16.90

31 City of Pleasanton
Landscape Maintenance District No. 1984-1, Ponderosa Engineer’s Report, Fiscal Year 2024-25 CITY 946-4563-125 16.62 n/a 16.62
344 TOTAL ASSESSMENTS: $5,717.28 $96.04 $5,813.32

RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON

DECLARING THE INTENTION TO ORDER IMPROVEMENTS FOR THE LIGHTING & LANDSCAPE MAINTENANCE DISTRICT NO. 1993-1 WINDSOR FOR FISCAL YEAR 2024/25; DECLARING THE INTENTION TO CONTINUE THE LEVY AND COLLECTION OF ASSESSMENTS; AND SETTING THE DATE FOR THE PUBLIC HEARING WHEREAS, as required by Section 22622 of the California Streets and Highways Code, the City Council of the City of Pleasanton has described proposed improvements to be included for the determination of annual assessments levied for Lighting and Landscape Maintenance District No. 1993-1 Windsor, created under the Lighting & Landscape Act of 1972, and ordered the preparation of an Engineer’s Report to determine the annual levy of assessments for such District; and
WHEREAS, as required by Section 22622 of the California Streets and Highways Code, the Engineer has filed with the City Clerk a Preliminary Engineer’s Report for the Lighting & Landscape Maintenance District No. 1993-1 Windsor for Fiscal Year 2024/25.

NOW, THEREFORE BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES RESOLVE, DECLARE, DETERMINE AND ORDER THE FOLLOWING:

SECTION 1. The City Engineer is designated by this Council as the Engineer of Work for Lighting & Landscape Maintenance District No. 1993-1, Windsor, during fiscal year 2024/25.

The area of land to be assessed is located in the City of Pleasanton, Alameda County.

SECTION 2. The City Council intends to continue to levy and collect assessments within Lighting & Landscape Maintenance District No. 1993-1 Windsor, during fiscal year 2024/25.

SECTION 3. The improvements to be made in this assessment district are generally described as follows:

Maintenance of the masonry walls, trees, shrubbery, groundcover, and irrigation systems situated on the northeast side of Tapestry Way and Minton Court, Lot A in the northwest corner of the subdivision and also Lot C in the southwest corner of the subdivision.

SECTION 4. In accordance with this resolution directing the filing of an annual report, the City Engineer has filed with the City Clerk the report required by the Landscaping and Lighting Act of 1972. All interested persons are referred to that report for a full and detailed description of the improvements, the boundaries of the assessments upon assessable lots and parcels of land within the assessment district.

SECTION 5. On Tuesday, the 18th day of June 2024, at the hour of 7:00 pm, the City Council will conduct a public hearing on the question of the levy of the proposed annual assessment. The Council meeting will be held in accordance with Government Code Section 54954(e). To improve access to public information, residents may access meetings remotely through the City’s website.

SECTION 6. The City Clerk is authorized and directed to give the notice of hearing required by the Landscaping and Lighting Act of 1972.

SECTION 7. City Clerk shall certify to the passage of this resolution and enter it into the book of original resolutions.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Pleasanton at a regular meeting held on May 21, 2024.

I, Jocelyn Kwong, City Clerk of the City of Pleasanton, California, certify that the foregoing resolution was adopted by the City Council at a regular meeting held on the 21st day of May, 2024, by the following vote:

Ayes:

Noes:

Absent:

Abstain:
_____________________________
Jocelyn Kwong, City Clerk
APPROVED AS TO FORM:
____________________________
Daniel G. Sodergren, City Attorney

i

CITY OF PLEASANTON
Landscape Maintenance District No. 1993-1, Windsor
Engineer’s Report
Fiscal Year 2024-25
May 2024
Pursuant to the Landscaping and Lighting Act of 1972, government code and article XIIID of the California Constitution

EXHIBIT A

ii
City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2024-25 (This page intentionally left blank)

i
City of Pleasanton
Mayor and City Council
Karla Brown, Mayor
Julie Testa, Vice Mayor
Valerie Arkin, Councilmember
Jack Balch, Councilmember
Jeff Nibert, Councilmember
City Manager
Gerry Beaudin
City Engineer
Adam M. Nelkie

ii
City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2024-25 Table of Contents
PAGE NO.

Introduction .......................................................................................................................................... 1 Overview ............................................................................................................................................... 1 Landscape Maintenance District No. 1993-1, Windsor...................................................................... 1 Engineer’s Report and Continuation of Assessments........................................................................ 3 Legal Requirements ........................................................................................................................... 3 Plans & Specifications ........................................................................................................................ 5 Introduction......................................................................................................................................... 5 Windsor Description of Improvements ............................................................................................... 6 Recommended Capital Improvements............................................................................................... 7 Estimate of Cost and Budget – Fiscal Year 2024-25........................................................................ 8 Notes to Estimate ............................................................................................................................... 8 Method of Assessment Apportionment ..........................................................................................10 Method of Apportionment .................................................................................................................10 Discussion of Benefits ......................................................................................................................10 General vs. Special Benefits ............................................................................................................12 Calculating General Benefit and Special Benefit Paid from Other Funds .......................................13 Zones of Benefit................................................................................................................................17 Method of Assessment.....................................................................................................................18 Residential Properties ......................................................................................................................19 Other Properties ...............................................................................................................................19 The Assessment Rate does not Increase Annually .........................................................................19 Appeal of Assessments Levied to Property .....................................................................................19 Assessment Funds Must be Expended Within the Maintenance District Area................................20 Assessment........................................................................................................................................21 Certificates Page................................................................................................................................23 Assessment Diagram ........................................................................................................................24 Assessment Roll FY 2024-25 – Landscape Maintenance District No. 1993-1 Windsor .............25

iii
City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2024-25 List of Figures
Figure 1 – Estimate of Costs and Revenues..................................................................................... 7 Figure 2 – Summary Cost Estimate – Windsor LMD No. 1993-1 ...................................................20 Figure 3 – Assessment Roll FY 2024-25 – Windsor LMD No. 1993-1 ...........................................24

1 Introduction
Overview
The City of Pleasanton (“City”) is located in Alameda County, and covers an area of

24.3 square miles, with over 24,500 assessor parcels, and approximately 80,000 residents. The City currently has five Landscape Maintenance Districts (“Districts”) that provide services to a combined total of 680 parcels:
• 1984-1 Ponderosa (Del Prado) – 344 parcels
• 1993-1 Windsor – 90 parcels
• 1993-2 Bonde Ranch – 103 parcels
• 1994-1 Oak Tree Farm – 42 parcels
• 1995-1 Moller Ranch – 101 parcels
The five District’s benefit assessments were established prior to the approval of Proposition 218 in 1996. The purpose of these Districts is to provide funding for the installation, maintenance and servicing of local landscaping and lighting improvements (“Improvements”) within each District’s service area.

Landscape Maintenance District No. 1993-1, Windsor
Assessment Background
The Windsor Landscape Maintenance District No. 1993-1 (“District 1993-1” or “Maintenance District”) was formed in 1993 as a Condition of Approval for the Windsor development, to fund certain landscape improvements within the Windsor subdivision.

The Maintenance District has a total of 90 single-family residential parcels.

The Windsor Landscape Maintenance District No. 1993-1 purpose is to fund the maintenance and repair of designated landscaped areas and open space areas, entry features, masonry soundwalls, common area drainage ditches, irrigation systems, trees and plantings in designated landscaped areas, furnishing of water and power for irrigation systems, and streetlights.

District 1993-1 is funded by the benefit assessment approved in 1993 (“Assessment”), and it does not receive any direct revenues from property taxes or any other funding sources. The fiscal year 2024-25 assessments for District 1993-1 will remain at the same assessment rate of $269.62 per parcel per year. With a total of 90 parcels in the Maintenance District, fiscal year 2024-25 total assessment will be $24,265.80.

Over the years, operational costs and utility costs have increased, however the assessment revenues have remained the same. The fiscal year 2024-25 total assessment revenue will not be sufficient to fund the maintenance of all landscaped areas, including water costs, county assessment fees, city administration fees, replacement of plantings, irrigation systems, and other district improvements. The

2 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2024-25 Engineer’s Report projects a shortage that will require the City to reduce landscape maintenance and water use so that maintenance costs remain below assessments.

City staff began the process of potentially increasing the assessments for the Windsor Landscape Maintenance District in 2022 through a Proposition 218 compliant voting procedure. However, the property owners that attended the neighborhood outreach meeting on February 2, 2022, voiced their desire that the City undertake more significant outreach to discuss increasing the assessment prior to taking the decision to vote. Staff set up a meeting with the Windsor neighborhood again on October 18, 2022, to discuss the assessments. A notification was sent via mail to all property owners and the HOA manager notified the residents of the meeting via email. About ten residents attended the meeting to discuss the need for and process for a vote to increase the assessment. The residents expressed an interest in having more control on how the money is spent and requested that the City provide additional information to them regarding the formation of the Windsor Landscape Maintenance District.

On November 3, staff sent an email to the Windsor HOA property manager that defined the maintenance responsibilities associated with the development and included the formation documents for the development. After receiving the formation documents, the HOA Board expressed their interest in partially taking over the maintenance responsibilities of the LMD rather than taking the assessment increase to a vote by the homeowners. Staff worked with the HOA Board President to determine what that shared maintenance would look like. On March 29, 2023, the Board submitted a letter stating their commitment to take over the monthly maintenance of the planting and paying the costs of water and on February 6, 2024, the HOA took over the monthly maintenance and water payments. The Windsor LMD retained the other maintenance responsibilities/costs, including but not limited to irrigation repairs, soundwall repair, tree pruning, etc.

Although the HOA accepted the costs for routine plant maintenance and water to help to alleviate the fund balance deficit, it is not a permanent solution. An increase in the annual assessment will be necessary to meet the maintenance standards of the District in the future. The city can no longer subsidize staff administration time or the consultant fees for a Proposition 218-compliant vote. The consultant fees for the Proposition 218- compliant vote will cost approx. $40,000 and will come out of the reserve fund. Water costs are not a factor for the Windsor LMD since the HOA took over payment and that will reduce the proposed assessment increase amount, but significant tree pruning and capital improvement repair and replacement costs are substantial.

The landscape will continue to decline below the necessary maintenance standards of the district established by Ordinance 2458. This can open the district up to fines or litigation. To limit liability for the district, staff is pursuing a Proposition 218-compliant vote for 2025/26. It will be necessary for the city to continue to pursue a proposition 218-compliant vote, incurring significant consultant costs each time, until a sustainable assessment has been agreed to by property owners.

3 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2024-25 If additional funding from a new or increased assessment is not implemented, the City will be forced to continue to reduce maintenance and postpone facilities upgrades, resulting in a continuing deterioration of the grounds and facilities.

Engineer’s Report and Continuation of Assessments
Each year for which the assessments will be continued, the City Council must direct the preparation of an Engineer's Report, budgets, and proposed assessments for the upcoming fiscal year. After the Engineer's Report is completed, the City Council may preliminarily approve the Engineer's Report and proposed assessments and establish the date for a public hearing on the continuation of the assessments. This Report was prepared pursuant to the direction of the City Council.

This Engineer’s Report ("Report") was prepared to establish the budget for the continued maintenance, improvements, and services (“Improvements”) that would be funded by the proposed fiscal year 2024-25 assessments, determine the benefits received by property from the Improvements, and the method of assessment apportionment to lots and parcels within the Maintenance District. This Report and the proposed assessments have been made pursuant to the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code ("Act") and Article XIIID of the California Constitution (“Article”).

If the City Council approves this Engineer's Report and the continuation of the assessments by resolution, a notice of public hearing must be published in a local paper at least 10 days prior to the date of the public hearing. The resolution preliminarily approving the Engineer's Report and establishing the date for a public hearing is used for this notice.

Following the minimum 10-day period after publishing the notice, a public hearing is held for the purpose of allowing public testimony about the proposed continuation of the assessments. This hearing is currently scheduled for June 18, 2024. At this hearing, the City Council would consider approval of a resolution confirming the continuation of the assessments for fiscal year 2024-25. If so confirmed and approved, the assessments would be submitted to the County Auditor/Controller for inclusion on the property tax rolls for Fiscal Year 2024-25.

Legal Requirements
Proposition 218
The City of Pleasanton’s five Landscape Maintenance Districts were formed prior to the passage of Proposition 218, “The Right to Vote on Taxes Act,” which was approved by the voters of California on November 6, 1996, and is now Article XIIIC and XIIID of the California Constitution. (Proposition 218 provides for benefit assessments to be levied to fund the cost of providing services, improvements, as well as maintenance and operation expenses to a public improvement which benefits the assessed property).

Although these assessments are consistent with Proposition 218, the California judiciary has generally referred to pre-Proposition 218 assessments as “grandfathered

4 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2024-25 assessments” and held them to a lower standard than post Proposition 218 assessments.

The existing Assessment Districts will be re-assessed consistent with the procedures and requirements imposed by Proposition 218, which describes several important requirements, including property-owner balloting and approval for the imposition of new or increased assessments.

This Engineer’s Report is consistent with the requirements of Article XIIIC and XIIID of the California Constitution because the Improvements to be funded are clearly defined, the Improvements are directly available to and directly benefit property in the Maintenance District, and the Improvements provide a direct advantage to property in the Maintenance District that would not be received in absence of the assessments.

5 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2024-25 Plans & Specifications
Introduction
The work and Improvements to be undertaken by the City of Pleasanton within the Landscape Maintenance District No. 1993-1, Windsor, and the costs thereof paid from the levy of the annual assessments, provide special benefit to Assessor Parcels within the Maintenance District as defined in the Method of Assessment herein.

The Landscaping and Lighting Act of 1972 (Streets & Highways Code § 22525 et seq.), (the “Act”), defines improvement, maintenance, servicing, and incidental expenses as follows:
“Improvement” means one or any combination of the following:

The installation or planting of landscaping.

The installation or construction of statuary, fountains, and other ornamental structures and facilities.
installation or construction of public lighting facilities, including, but not limited to, traffic signals.
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, including, but not limited to, grading, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities.

The installation of park or recreational improvements, including, but not limited to, all of the following:
preparation, such as grading, leveling, cutting and filling, sod, landscaping, irrigation systems, sidewalks, and drainage.

Lights, playground equipment, play courts, and public restrooms.

The maintenance or servicing, or both, of any of the foregoing, and of any improvement authorized by subdivision (i).

The acquisition of land for park, recreational, or open-space purposes.

The acquisition of any existing improvement otherwise authorized pursuant to this section.

The acquisition or construction of any community center, municipal auditorium or hall, or similar public facility for the indoor presentation of performances, shows, stage productions, fairs, conventions, exhibitions, pageants, meetings, parties, or other group events, activities, or functions, whether those events, activities, or functions are public or private. “Maintain” or “maintenance” means the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including:

Repair, removal, or replacement of all or any part of any improvement. for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury.

6 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2024-25 The removal of trimmings, rubbish, debris, and other solid waste.

The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti.
“Service” or “servicing” means the furnishing of:

Electric current or energy, gas, or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements.

Water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other improvements.
“Incidental expenses” include all of the following:

The costs of preparation of the report, including plans, specifications, estimates, diagram, and assessment.

The costs of printing, advertising, and the giving of published, posted, and mailed notices.

Compensation payable to the county for collection of assessments.

Compensation of any engineer or attorney employed to render services in proceedings pursuant to this part.

Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements.

Any expenses incidental to the issuance of bonds or notes pursuant to Section 22662.5.

Costs associated with any elections held for the approval of a new or increased assessment.

The City of Pleasanton’s work and Improvements (“Improvements”) for the property within the Maintenance District that is owned or maintained by the City of Pleasanton, are consistent with these definitions. Plans and specifications for these Improvements are filed with the City of Pleasanton Landscape Architect and are incorporated herein by reference.

Windsor Description of Improvements
The improvements which are the subject of this Report are briefly described as follows:

The maintenance and repair of designated landscaped areas and open space areas, entry features, masonry soundwalls, common area drainage ditches, irrigation systems, trees and plantings in designated landscaped areas, furnishing of water and power for irrigation systems, and streetlights, together with all appurtenant and incidental expenses within Tract 6320, City of Pleasanton.

Landscape Plans and specifications for the improvements to this Lighting and Landscape Maintenance District are those prepared by Thomas Baak & Associates, dated July 1993, Grading Plans dated March 1990, and Improvement Plans Prepared by DK Associates, dated May 1990. These plans and specifications have been filed separately with the Clerk of the Legislative body and are incorporated in this report by reference.

7 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2024-25 Recommended Capital Improvements
Some of the Improvements including the irrigation system, trees and other plants, in the Landscape Maintenance District No. 1993-1, Windsor, are overdue for some muchneeded upgrades and repairs. However, the Maintenance District reserve fund balance is insufficient to make these improvements.

The city drafted a schedule of recommended capital improvement projects that need to be addressed and their respective cost estimate, as well as a planned replacement/renovation schedule. To fund the necessary capital improvements and maintain the district to a similar level to when the LMD was created. Even with the HOA taking over partial maintenance responsibilities, staff estimates that the annual assessments would need to be increased from $269.62 to approximately $380 with the inclusion of an inflation factor The city is working with a consultant and the HOA to develop the level of maintenance and recommended capital improvements during the upcoming year to create a comprehensive maintenance and improvement plan and associated costs.

8 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2024-25 Estimate of Cost and Budget – Fiscal Year 2024-25
The following budget shows the estimate of cost of the Improvements to be funded by the Maintenance District in Fiscal Year 2024-25.

Figure 1 – Estimate of Costs and Revenues
City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor
2024-25 Estimate of Costs
Budget
Installation, Maintenance, and Servicing Costs
Landscaping (maintenance)
Basic landscape maintenance $0.00
Extra worki $12,000.00
Water – All plantingii $0.00
Power – Two controllers $275.00
Total for Installation, Maintenance and Servicing $12,275.00 Incidental and Administration Costsiii
City of Pleasanton Assessment Administration $1,800.00
County Fees for Collection of Assessment $405.90
Total Incidental and Administrative Costs $2,205.90
Amount to/(from) Reserve Fundiv
Reserve/Long-term Replacement Fund for scheduled long-term replacement of various district improvements $9,784.90
Total Costs $24,265.80
Budget Allocation to Property
Single Family
Number of Equivalent Assessment Total
Parcels/Units Units (SFE)v Rate Assessmentvi
90 90 $269.62 $24,265.80
Explanation of Annual Assessment Rate per Unit:
90 units @ $269.62 assessment per year (= $265.11 + $4.51 County Collection Fee) Notes to Estimate
i. Contingency to address maintenance that is not routine in nature, such as repair or replacement of broken irrigation valves and lines or pruning/removing failed trees or tree limbs. ii. The HOA has accepted responsibility for the water costs.

9 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2024-25 iii. Incidental and administration cost estimates include City staff hours dedicated to the administration of the assessment (including staff time to bid work, monitor contracts and contractors, respond to residents’ inquiries, etc.), county charges for inclusion of assessments on property tax bills, and other incidental costs. iv. At the time of this report a fund balance deficit of approximately $(14,000) exists for the Landscape Maintenance District 1993-1. This deficit may increase due to tree failures and irrigation issues. The projected 2024-25 expenses reflect a reduced amount of maintenance to begin to recover the deficit, although it is likely that the irrigation system will continue to fail and cause significant expenses due to loss of water and repair costs. The reserve fund is running as a deficit and no other city funds have been impacted by the deficit. Reserve/replacement funds will go toward paying Windsor’s deficit and are held in an interest-bearing account until needed for repairs to the irrigation system, landscaping or other District features.
v. The rate shown here is for a single-family home or its equivalent. For the definition of the term Single Family Equivalent (SFE) and rates for other types of property, see the section titled, “Method of Assessment” and the sections following it in this report.
vi. The Act requires that proceeds from the assessments must be deposited into a special fund that has been set up for the revenues and expenditures of the Maintenance District. Moreover, funds raised by the assessment shall be used only for the purposes stated within this Report. Any balance remaining at the end of the Fiscal Year, June 30, must be carried over to the next Fiscal Year. The District may also establish a reserve fund for contingencies and special projects as well as a capital improvement fund for accumulating funds for larger capital improvement projects or capital renovation needs. Any remaining balance would either be placed in the reserve fund, the capital improvement fund, or would be used to reduce future years' assessments. The Landscape Maintenance District 1993-1, Windsor, reserve/replacement funds are held in an interest-bearing account until needed for repairs to the irrigation system, landscaping or other District features.

10 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2024-25 Method of Assessment Apportionment
Method of Apportionment
This section of the Engineer's Report includes an explanation of the benefits to be derived from the installation, maintenance and servicing of Improvements and landscaping for the Maintenance District and the methodology used to apportion the total assessment to the properties within the Maintenance District.

The method used for apportioning the assessment is based upon the relative special benefits to be derived by the properties in the Maintenance District over and above general benefits conferred on real property or to the public at large. The assessment is apportioned to lots and parcels in proportion to the relative cost of the special benefits from the Improvements. Special benefit is calculated for each parcel in the Maintenance District using the following process:
i. Identification of all benefit factors derived from the Improvements. ii. Calculation of the proportion of these benefits that are general. iii. Determination of the relative special benefit per property type. iv. Calculation of the specific assessment for each individual parcel based upon special vs. general benefit, location, property type, property characteristics, improvements on property and other supporting attributes.

The parcels within the Landscape Maintenance District No. 1993-1, Windsor, consist of all Assessor Parcels within the boundaries as defined by the Assessment Diagram included within this Report and the Assessor Parcel Numbers listed within the included Assessment Roll. The method used for apportioning the assessments is based upon the proportional special benefits to be derived by the properties in the Maintenance District, over and above general benefits conferred on real property or to the public at large.

The apportionment of special benefit is a two-step process: the first step is to identify the types of special benefit arising from the Improvements, and the second step is to allocate the assessments to property based on the estimated relative special benefit for each type of property.

Discussion of Benefits
The assessments can only be levied based on the special benefit to property. This benefit is received by property over and above any general benefits. With reference to the requirements for assessments, Section 22573 of the Landscaping and Lighting Act of 1972 states:
"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."

11 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2024-25 Proposition 218, as codified in Article XIIID of the California Constitution, has confirmed that assessments must be based on the special benefit to property:
"No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel." In this case, the 2008 Silicon Valley Taxpayers Association, Inc. vs Santa Clara County Open Space Authority (“SVTA”) decision provides enhanced clarity to the definition of special benefits to properties from similar public improvements in three distinct areas:
i. Proximity
ii. Expanded or improved access
iii. Views
The SVTA decision also clarifies that a special benefit is a service or improvement that provides a direct advantage to a parcel, and that indirect or derivative advantages resulting from the overall public benefits from a service or improvement are general benefits.

Proximity, improved access and views, in addition to the other special benefits listed herein further strengthen the basis of these assessments.

The following benefit categories summarize the types of special benefit to residential and other lots and parcels resulting from installation, maintenance and servicing of landscaping, irrigation, sidewalks, signs, lights, and other improvements to be provided with the assessment proceeds. These categories of special benefits are derived from the statutes passed by the California Legislature and studies which describe the types of special benefit received by property from maintenance and improvements such as those provided by the City of Pleasanton, Landscape Maintenance District No. 1993-1, Windsor. These types of special benefit are summarized as follows:
i. Improved access to landscaped areas and other permanent public improvements ii. Proximity to improved landscaped areas and other permanent public improvement.
iii. Improved views.
iv. Extension of a property’s outdoor areas and landscaped areas for properties within close proximity to the Improvements.
v. Creation of individual lots for residential use that, in absence of the assessments, would not have been.

The above benefit factors, when applied to property in the Maintenance District, specifically increase the utility and usefulness of the property within the Maintenance District. For example, the assessments will provide funding to improve and maintain the public landscaping next to the parcels within the Maintenance District. Such improved and well-maintained landscaping enhances the overall quality, desirability, utility and safety of the properties.

12 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2024-25 General vs. Special Benefits
Article XIIID, Section 4(a) of the California Constitution requires any local agency proposing to increase or impose a benefit assessment to “separate the general benefits from the special benefits conferred on a parcel.” The rationale for separating special and general benefits is to ensure that property owners subject to the benefit assessment are not paying for general benefits. Property may be assessed to fund improvements to the extent of the special benefits conferred by the Improvements; but general benefits are not assessable. Accordingly, a separate estimate of the special and general benefit is given in this section.

Article XIIID never defines the term “general benefit.” The definition of special benefit in Section 2(i) includes the statement that general enhancement of property value does not constitute special benefit. General benefit may be described as “an indirect, derivative advantage” resulting from the improvements. One infers from Article XIIID that all benefit is either general or special.

In other words:

Total
Benefit = General Benefit
+ Special
Benefit
There is no widely accepted or statutory formula for quantifying the amount of any general benefit that is identified.

In this Report, the general benefit is first identified, generously estimated, and then budgeted so that it is funded, as required by Proposition 218, by sources other than the Assessment.

A formula to estimate the general benefit is listed below:

General
Benefit =
Benefit to Real
Property Outside the
Assessment District
+
Benefit to Real Property Inside
the Assessment District that is
Indirect and Derivative
+
Benefit to
the Public
at Large
Special benefit, on the other hand, is defined in the California constitution as “a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large”. A special benefit is conferred to a property if the property “receives a direct advantage from the improvement (e.g., proximity to setback landscaping).” In the Maintenance District, as noted, properties have close and unique proximity, views of and access to the Improvements, and uniquely improved utility and desirability from the Improvements, and other properties and the public at large do not receive such benefits because they do not have proximity, access to or views of the Improvements. Therefore, the overwhelming proportion of the benefits conferred to property is special, and only minimal general benefit is conferred on property outside the Maintenance District or to the public at large.

13 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2024-25 This Engineer’s Report includes a specific, quantified calculation of general benefits, as described below, that is based in part on the use by people outside of the Maintenance District. Moreover, the proportionality of the Assessments to the special benefits conferred on each parcel, based in large part on proximity, is established as well.

Calculating General Benefit and Special Benefit Paid from Other Funds In this section, the total general benefit, which must be paid from other non-assessment funds, is conservatively estimated, quantified, described, and separated, and then budgeted to absolutely ensure that it is funded by sources other than this assessment.

Benefit to Property Outside the Maintenance District = 0.0% In summary, real property located within the boundaries of the Maintenance District distinctly and directly benefit from closer proximity, access and views of the Improvements funded by the Assessments, the creation of developable parcels, and from the extension of usable land area provided by the assessments. The Improvements are specifically designed to serve local properties in the Maintenance District, not other properties nor the public at large.

The Maintenance District has been narrowly drawn to include those parcels that receive a direct advantage from the Improvements. The public at large and other properties outside the Maintenance District receive only limited benefits from the Improvements because they do not have proximity, good access or views of the Improvements. These are special benefits to property in the Maintenance District in much the same way that sewer and water facilities, sidewalks and paved streets enhance the utility and desirability of specific proximate properties and make them more functional to use, safer and easier to access.

Properties within the proposed Maintenance District receive almost all the special benefits from the Improvements because properties in the Maintenance District enjoy unique and close proximity and access to the Improvements that are enjoyed less by other properties or the public at large. The landscaping Improvements are specifically designed to benefit the properties in the Maintenance District.

Furthermore, there are multiple, proximate open space, landscaped areas, and other improvements outside of the Maintenance District, funded by other sources, that provide most of the open space and landscaping benefits to nearby parcels that are outside of the Maintenance District.

In other words, the landscaping Improvements maintained by the proposed Assessments specially benefit the properties within the Maintenance District, but other nearby improvements primarily benefit other proximate properties.

Nonetheless, there could be certain properties that are outside the boundaries of the Maintenance District and that may benefit from the landscape Improvements.

After close examination, and based on the location of the Windsor development,

14 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2024-25 with Interstate 680 to the east, Arroyo de la Laguna to the west, and Bernal Avenue to the south, it was concluded that there are no proximate parcels that could be identified as receiving any special benefit from the Maintenance District Improvements.

If any parcels were proximate to the Windsor development, and if it was identified that those parcels receive some special benefit from the improvements, those benefits would likely be improved views, proximity and/or access, but would not receive extension of outdoor areas nor the special benefit of parcel creation.

Since those adjacent properties would only receive a 3 of the 5 major special benefits, a 60% factor would be applied.

Total General Benefit to Properties Outside of the District = 0.0% Assumptions
0 parcels outside and adjacent to the District
90 parcels in the Maintenance District
Calculation
General Benefit to Property outside the Improvement District = (0 / (0 + 90)) * 60% = 0.0 %
Benefit to Property Inside the District that is Indirect and Derivative = 0.0% The “indirect and derivative” benefit to property within the Maintenance District is particularly difficult to calculate. A solid argument can be presented that all benefit within the Maintenance District is special because the Improvements are clearly “over and above” and “particular and distinct” when compared with the unique proximity, access and views of the Improvements enjoyed by benefiting properties in the Maintenance District.

Nevertheless, the SVTA decision indicates that there may be general benefit “conferred on real property located in the district.” A measure of the general benefits to property within the Maintenance District is the percentage of land area within the Maintenance District that is publicly owned, open to the public, and used for regional purposes such as major roads, rail lines, hospitals, and other regional facilities because such properties, while physically within the Maintenance District, are used for regional purposes and could provide indirect benefits to the public at large. In this case, essentially 0% of the land area is used for such regional purposes.

Benefit to the Public at Large = 10%
The general benefit to the public at large can be estimated by the proportionate amount of time that the Maintenance District’s public landscaped areas and facilities are used and enjoyed by individuals who are not residents, employees, customers, or property owners in the Assessment Area. Based on surveys and

15 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2024-25 research in which visitors to similar landscape, open space and parks, at various times of the day, evening, and week, were asked to look at a District map and to identify whether they lived or worked within the City, less than 5% of the use of similar landscape, open space, parks or recreation areas is by the public at large.

When people outside the Maintenance District use landscape, open space, parks, or recreation areas, they diminish the availability of such facilities for people within the Maintenance District. Therefore, another 5% of general benefits are allocated for people within the Maintenance District. Combining these two elements of general benefit, we find that 10% of the benefits from the Improvements are general benefits to the public at large.

Total General Benefits to be Financially Contributed from Other Funds =

10.0%
Using a sum of these three measures of general benefit, we find that approximately 10.0% of the benefits conferred by the Improvements may be general in nature and should be funded by sources other than the Assessments.

General Benefit Calculation

0.0% (Outside the Maintenance District)
+ 0.0% (Inside the Maintenance District – indirect and derivative) + 10.0% (Public at Large)
= 10.0% (Total General Benefit)
Source of Financial Contributions from Other Funds to Satisfy the 10.0% Requirement
The general benefit contribution is paid in part from other “in-kind”, non-monetary contributions from the City in the form of infrastructure critical to the continued maintenance of the Maintenance District Improvements, as described below.

Also, general benefit contributions come from the “annuity” value of the improvements that were constructed by the developer.

The City of Pleasanton owns, maintains, rehabilitates, and replaces the curb and gutter along the border of the Maintenance District. This curb and gutter serve to support, contain, retain, manage irrigation flow and growth, and provide a boundary for the Improvements. The contribution from the City of Pleasanton toward general benefit from the maintenance, rehabilitation, and replacement of the curb and gutter is conservatively estimated to be 10%, based upon the relative cost to construct and maintain this critical local infrastructure. In other words, if the Maintenance District were required to construct and maintain the local curb and gutter, the budget would increase by at least 10%.

The City of Pleasanton owns and maintains a storm drainage system along the border of the Maintenance District. This system serves to prevent flooding and

16 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2024-25 associated damage to the improvements and manage urban runoff including local pollutants loading from the Improvements. The contribution from the City of Pleasanton toward general benefit from the maintenance, rehabilitation, and replacement of the local storm drainage system is conservatively estimated to be 10%, based upon the relative cost to construct and maintain this critical local infrastructure. In other words, if the Maintenance District were required to construct and maintain the local storm drainage system, the budget would increase by at least 10%.

The City of Pleasanton owns and maintains local public streets throughout the Maintenance District. These public streets provide access to the Improvements for its enjoyment as well as efficient maintenance. The contribution from the City of Pleasanton toward general benefit from the maintenance, rehabilitation, and replacement of the local public streets is conservatively estimated to be 10%, based upon the relative cost to construct and maintain this critical local infrastructure. In other words, if the Maintenance District were required to construct and maintain the local public streets, the budget would increase by at least 10%.

The value of the initial Improvements constructed by the Developer can be quantified and monetized as an annuity to be amortized. Since the initial Improvements were performed and paid for by non-assessment funds, this “annuity” can be used to offset general benefit costs and is conservatively estimated to contribute 20%. In other words, if the Maintenance District were required to construct all the Improvements, the annual budget would increase by at least 20%.

In other words, there is a 10.0% contribution needed to offset the general benefits conferred by the Improvements, and there is a 50% contribution from City of Pleasanton supporting local infrastructure, along with the amortized value of initial construction. This 50% contribution more than satisfies the general benefit requirements.

The estimates used above for the City of Pleasanton’s “in-kind”, non-monetary contributions for the maintenance, rehabilitation and replacement of the curbs and gutters, storm drainage systems, local streets (the “supportive infrastructure”), and the value of the initial Improvements constructed by the Developer, are based on industry standards; typical and standard quantity ratios between this supportive infrastructure (including the City’s relative associated maintenance costs) and similar Improvements; and on the assessment Engineer’s professional experience on planning and working in such projects.

17 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2024-25 Source of Contributions from Other Funds to Satisfy 10.0% Requirement City non-monetary contributions:

10.0% (Curb and gutter)
+ 10.0% (Storm drainage system)
+ 10.0% (Public roads)
+ 20.0% (Amortized value of initial construction)
= 50.0% (Total General Benefit paid from Other Funds)
Zones of Benefit
The boundaries of the Assessment Area are carefully drawn to only include the properties that are proximate to the Improvements and that would materially benefit from the Improvements.

In SVTA, the court noted that even a local agency-wide assessment district is appropriate under the right conditions:
“Thus, if an assessment district is narrowly drawn, the fact that a benefit is conferred throughout the district does not make it general rather than special. In that circumstance, the characterization of a benefit may depend on whether the parcel receives a direct advantage from the improvement (e.g., proximity to a park) or receives an indirect, derivative advantage resulting from the overall public benefits of the improvement (e.g., general enhancement of the district's property values).”
The court therefore acknowledged the appropriateness of a District-wide assessment so long as each parcel receives a direct advantage from the assessment-funded improvement or service. As demonstrated in this Report, each parcel in the Maintenance District receives a direct advantage and special benefit from the Improvements.

In the Maintenance District, the advantage that each parcel receives from the Improvements is direct, and the boundaries are narrowly drawn to include only parcels that benefit from the Assessment. Therefore, the even spread of assessment throughout the narrowly drawn district is indeed consistent with the SVTA decision. The benefits from the Improvements within the Maintenance District do not vary further based on proximity of the parcels to the Improvements because the increased benefits of greater proximity to the Improvements are generally offset by a parallel increase in negative factors such as higher levels of traffic, noise, etc. that comes with increased proximity.

18 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2024-25 Consequently, since all parcels in the Maintenance District have good access and proximity to the Improvements and the benefits to relatively closer proximity are offset by other factors, additional proximity is not considered to be a factor in determining benefit within the Maintenance District. Therefore, zones of benefit are not justified or needed within the Maintenance District.

Method of Assessment
As previously discussed, the Assessments provide comprehensive Improvements that clearly confers direct and special benefits to properties in the Maintenance District.

The allocation of special benefits to property is primarily based on the type of property and the size of property. These benefits can also partially be measured by the occupants on property in the Maintenance District because such parcel population density is a measure of the relative benefit a parcel receives from the Improvements. It should be noted that many other types of “traditional” assessments also use parcel population densities to apportion the assessments. For example, the assessments for sewer systems, roads and water systems are typically allocated based on the population density of the parcels assessed. Therefore, the apportionment of benefit is reasonably based on the type of parcel, the size of parcels and the population density of parcels.

A critical step in apportioning assessments is to determine the relative special benefit for each property. This process involves determining the relative benefit received by each property in relation to a single-family home, or, in other words, on the basis of Single-Family Equivalent (SFE) units. This SFE methodology is commonly used to distribute assessments in proportion to estimated special benefit and is generally recognized as providing the basis for a fair and appropriate distribution of assessments.

For the purposes of this Engineer’s Report, all properties are designated an SFE value, which is each property’s relative benefit in relation to a single-family home on one parcel. In this case, the "benchmark" property is the single family detached dwelling which is one Single Family Equivalent unit or one SFE.

Finally, the special benefits to be derived from the Assessments will be conferred on property and are not based on a specific property owner’s use of the Improvements, a specific property owner’s occupancy of property, or the property owner’s demographic status such as age or number of dependents. The benefits derived to property are related to the average number of people who could potentially live on, work at, or otherwise could occupy a property, not how the property is currently used by the present owner. Therefore, the number of people who could, or potentially, live on, work at, or otherwise occupy a property is one indicator of the relative level of benefit received by a property.

In conclusion, the Assessment Engineer determined that the appropriate method of assessment apportionment should be based on the type of property, the relative size of the property, property location, its relative population, and its proximity to the landscaping and open space facilities. This method is further described below.

19 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2024-25 Residential Properties
The Windsor development is a residential single-family development project consisting of a total of 90 single-family home parcels. As such, each residential property receives similar benefit from the proposed Improvements.

Therefore, the Engineer has determined that the appropriate method of apportionment of the benefits derived by all parcels is on a dwelling unit or single-family residence basis. All improved properties, or properties proposed for development, are assigned one Single Family Equivalent unit or 1 SFE factor equal to the number of dwelling units developed or planned for the property.

Other Properties
Article XIIID stipulates that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the Assessment.

All properties that are specially benefited are assessed. Other publicly owned property that is used for purposes similar to private residential, commercial, industrial, or institutional uses is benefited and assessed at the same rate as such privately owned property.

Miscellaneous, small, and other parcels such as roads, right-of-way parcels, and common areas typically do not generate significant numbers of employees, residents, customers, or guests, who would have access to or use the Improvements. These miscellaneous parcels therefore receive no benefit from the Improvements and are assessed an SFE benefit factor of 0 SFEs.

The Assessment Rate does not Increase Annually
It should also be noted that the Maintenance District assessment rates cannot be increased annually, and the total revenues remain the same year after year, assessing $269.62 per SFE or parcel, which is the maximum authorized assessment. To increase the annual assessment rate or to add an annual Consumer Price Index escalator to the assessment rate, approval of the property owners is required via a Proposition 218 assessment ballot proceeding.

Appeal of Assessments Levied to Property
Any property owner who feels that the assessment levied on their property is in error as a result of incorrect information being used to apply the foregoing method of assessment may file a written appeal with the City of Pleasanton City Engineer or his or her designee. Any such appeal is limited to correction of an assessment during the then current Fiscal Year and applicable law. Upon the filing of any such appeal, the City of Pleasanton City Engineer or his or her designee will promptly review the appeal and any information provided by the property owner. If the City of Pleasanton City Engineer or his or her designee finds that the assessment should be modified, the appropriate changes shall be made to the Assessment Roll. If any such changes are approved after

20 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2024-25 the Assessment Roll has been filed with the County for collection, the City Engineer or his or her designee is authorized to refund to the property owner the amount of any approved reduction.

Assessment Funds Must be Expended Within the Maintenance District Area The net available Assessment funds, after incidental, administrative, financing, and other costs, shall be expended exclusively for Improvements within the boundaries of the Maintenance District and appropriate incidental and administrative costs as defined in the Plans and Specifications section.

21 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2024-25 Assessment
WHEREAS, the City of Pleasanton City Council directed the undersigned Engineer of Work to prepare and file a report presenting an estimate of costs, a diagram for the Maintenance District, and an assessment of the estimated costs of the Improvements upon all assessable parcels within the Maintenance District; NOW, THEREFORE, the undersigned, by virtue of the power vested in me under the Act, Article XIIID of the California Constitution, and the order of the City Council of the City of Pleasanton, hereby makes the following assessment to cover the portion of the estimated cost of the Improvements, and the costs and expenses incidental thereto to be paid by the Maintenance District.

The amount to be paid for said Improvements and the expense incidental thereto, to be paid by the Maintenance District for the Fiscal Year 2024-25 is generally as follows:

Figure 2 – Summary Cost Estimate – Windsor LMD No. 1993-1 Budget Item Budgeted
Cost
Installation, Maintenance, and Servicing Costs $12,275.00 Incidental and Administration Costs $2,205.90
Amount to/(from) Reserve Fund $9,784.90
Total Budget $24,265.80
As required by the Act, an Assessment Diagram showing the exterior boundaries of the Maintenance District is hereto attached and incorporated herein by reference. The distinctive number of each parcel or lot of land in the Maintenance District is its Assessor Parcel Number appearing on the Assessment Roll.

I do hereby assess and apportion the net amount of the cost and expenses of the Improvements, including the costs and expenses incident thereto, upon the parcels and lots of land within the Maintenance District, in accordance with the special benefits to be received by each parcel or lot, from the Improvements, and more particularly set forth in the Estimate of Cost and Method of Assessment in the Report.

22 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2024-25 The Assessment is made upon the parcels or lots of land within the Maintenance District in proportion to the special benefits to be received by the parcels or lots of land, from the Improvements.

The Maintenance District’s assessment rate for fiscal year 2024-25 remains unchanged at the same assessment rate used last year of $269.62 per single-family equivalent (SFE) benefit unit.

Each parcel or lot of land is described in the Assessment Roll by reference to its parcel number as will be shown on the Assessor's Maps of Alameda County for the Fiscal Year 2024-25. For a more particular description of the property, reference is hereby made to the deeds and maps on file and of record in the office of the County Recorder of the County.

I hereby will place opposite the Assessor Parcel Number for each parcel or lot within the Assessment Roll, the amount of the assessment for the Fiscal Year 2024-25 for each parcel or lot of land within the Maintenance District.

City Engineer/Engineer of Work
By:

Adam M. Nelkie, License No. C78830

23 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2024-25 Certificates Page
LANDSCAPE MAINTENANCE DISTRICT 1993-1, WINDSOR CITY OF PLEASANTON,

ALAMEDA COUNTY, CALIFORNIA
(Pursuant to the Landscaping and Lighting Act of 1972)
The undersigned respectfully submits the enclosed Engineer's Report and does hereby certify that this Engineer's Report and the Assessment have been prepared by me as directed by the City Council.

Adam M. Nelkie, City Engineer, License No. C78830
City of Pleasanton, Alameda County, California
By:

I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment and Assessment Diagram thereto attached, was filed with me on the _________day of______________, 2024.

Jocelyn Kwong, City Clerk
City of Pleasanton, Alameda County, California
By:

I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment and Assessment Diagram thereto attached, was approved and confirmed by the City Council of the City of Pleasanton, Alameda County, California, on the ______________day of____________, 2024.

Jocelyn Kwong, City Clerk
City of Pleasanton, Alameda County, California
By:

I HEREBY CERTIFY that a certified copy of the enclosed Engineer's Report, including Assessment Roll and Assessment Diagram was filed with the County Auditor of the County of Alameda, on the ______________day of_______________, 2024.

Jocelyn Kwong, City Clerk
City of Pleasanton, Alameda County, California
By:

24 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2024-25 Assessment Diagram
The Maintenance District includes all properties within the Windsor subdivision, as displayed on the following Assessment Diagram. The lines and dimensions of each lot or parcel within the Maintenance District are those lines and dimensions as shown on the maps of the Assessor of Alameda County for Fiscal Year 2024-25, and are incorporated herein by reference, and made a part of this Diagram and this Report.

25 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2024-25 Assessment Roll FY 2024-25 - Windsor LMD No. 1993-1

COLLECTION

ASSESSMENT ASSESSOR'S ASSESSMENT CHARGE
DIAGRAM NO. PARCEL NUMBER AMOUNT 0.017 TOTAL
1 946-3541-06 $265.11 $4.51 $269.62
2 946-3541-07 265.11 $4.51 269.62
3 946-3541-08 265.11 $4.51 269.62
4 946-3541-09 265.11 $4.51 269.62
5 946-3541-10 265.11 $4.51 269.62
6 946-3541-11 265.11 $4.51 269.62
7 946-3541-12 265.11 $4.51 269.62
8 946-3541-13 265.11 $4.51 269.62
9 946-3541-14 265.11 $4.51 269.62
10 946-3541-15 265.11 $4.51 269.62
11 946-3541-16 265.11 $4.51 269.62
12 946-3541-17 265.11 $4.51 269.62
13 946-3541-18 265.11 $4.51 269.62
14 946-3541-19 265.11 $4.51 269.62
15 946-3541-20 265.11 $4.51 269.62
16 946-3541-21 265.11 $4.51 269.62
17 946-3541-22 265.11 $4.51 269.62
18 946-3541-23 265.11 $4.51 269.62
19 946-3541-24 265.11 $4.51 269.62
20 946-3541-25 265.11 $4.51 269.62
21 946-3541-26 265.11 $4.51 269.62
22 946-3542-01 265.11 $4.51 269.62
23 946-3542-02 265.11 $4.51 269.62
24 946-3542-03 265.11 $4.51 269.62
25 946-3542-04 265.11 $4.51 269.62
26 946-3542-05 265.11 $4.51 269.62
27 946-3542-06 265.11 $4.51 269.62
28 946-3542-07 265.11 $4.51 269.62
29 946-3542-08 265.11 $4.51 269.62
30 946-3542-09 265.11 $4.51 269.62
31 946-3542-10 265.11 $4.51 269.62
32 946-3542-11 265.11 $4.51 269.62
33 946-3542-12 265.11 $4.51 269.62
34 946-3542-13 265.11 $4.51 269.62
35 946-3542-14 265.11 $4.51 269.62
36 946-3542-15 265.11 $4.51 269.62
37 946-3542-16 265.11 $4.51 269.62
38 946-3542-17 265.11 $4.51 269.62
39 946-3542-18 265.11 $4.51 269.62
40 946-3542-19 265.11 $4.51 269.62
41 946-3542-20 265.11 $4.51 269.62
42 946-3542-21 265.11 $4.51 269.62
43 946-3541-27 265.11 $4.51 269.62

26 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2024-25 44 946-3541-28 265.11 $4.51 269.62
45 946-3541-29 265.11 $4.51 269.62
46 946-3541-30 265.11 $4.51 269.62
47 946-3541-31 265.11 $4.51 269.62
48 946-3541-32 265.11 $4.51 269.62
49 946-3541-33 265.11 $4.51 269.62
50 946-3541-34 265.11 $4.51 269.62
51 946-3541-35 265.11 $4.51 269.62
52 946-3541-36 265.11 $4.51 269.62
53 946-3541-37 265.11 $4.51 269.62
54 946-3541-38 265.11 $4.51 269.62
55 946-3541-39-1 265.11 $4.51 269.62
56 946-3541-40-2 265.11 $4.51 269.62
57 946-3541-41 265.11 $4.51 269.62
58 946-3541-42 265.11 $4.51 269.62
59 946-3541-43 265.11 $4.51 269.62
60 946-3541-44 265.11 $4.51 269.62
61 946-3541-45 265.11 $4.51 269.62
62 946-3541-46 265.11 $4.51 269.62
63 946-3541-47 265.11 $4.51 269.62
64 946-3541-48 265.11 $4.51 269.62
65 946-3541-49 265.11 $4.51 269.62
66 946-3541-50 265.11 $4.51 269.62
67 946-3541-51 265.11 $4.51 269.62
68 946-3541-52 265.11 $4.51 269.62
69 946-3541-53 265.11 $4.51 269.62
70 946-3541-54 265.11 $4.51 269.62
71 946-3541-55 265.11 $4.51 269.62
72 946-3541-56 265.11 $4.51 269.62
73 946-3541-57 265.11 $4.51 269.62
74 946-3541-58 265.11 $4.51 269.62
75 946-3541-59 265.11 $4.51 269.62
76 946-3542-22 265.11 $4.51 269.62
77 946-3542-23 265.11 $4.51 269.62
78 946-3542-24 265.11 $4.51 269.62
79 946-3542-25 265.11 $4.51 269.62
80 946-3542-26 265.11 $4.51 269.62
81 946-3542-27 265.11 $4.51 269.62
82 946-3542-28 265.11 $4.51 269.62
83 946-3542-29 265.11 $4.51 269.62
84 946-3542-30 265.11 $4.51 269.62
85 946-3542-31 265.11 $4.51 269.62
86 946-3542-32 265.11 $4.51 269.62
87 946-3542-33 265.11 $4.51 269.62
88 946-3542-34 265.11 $4.51 269.62
89 946-3542-35 265.11 $4.51 269.62
90 946-3542-36 265.11 $4.51 269.62
90 TOTAL
ASSESSMENTS: $23,859.90 $405.90 $24,265.80

27 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2024-25

RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON

DECLARING THE INTENTION TO ORDER IMPROVEMENTS FOR THE LIGHTING & LANDSCAPE MAINTENANCE DISTRICT NO. 1993-2 BONDE RANCH FOR FISCAL YEAR 2024/25; DECLARING THE INTENTION TO CONTINUE THE LEVY AND COLLECTION OF ASSESSMENTS; AND SETTING THE DATE FOR THE PUBLIC

HEARING
WHEREAS, as required by Section 22622 of the California Streets and Highways Code, the City Council of the City of Pleasanton has described proposed improvements to be included for the determination of annual assessments levied for Lighting and Landscape Maintenance District No. 1993-2 Bonde Ranch, created under the Lighting & Landscape Act of 1972, and ordered the preparation of an Engineer’s Report to determine the annual levy of assessments for such District; and
WHEREAS, as required by Section 22622 of the California Streets and Highways Code, the Engineer has filed with the City Clerk a Preliminary Engineer’s Report for the Lighting & Landscape Maintenance District No. 1993-2 Bonde Ranch for Fiscal Year 2024/25.

NOW, THEREFORE BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES RESOLVE, DECLARE, DETERMINE AND ORDER THE FOLLOWING:

SECTION 1. The City Engineer is designated by this Council as the Engineer of Work for Lighting & Landscape Maintenance District No. 1993-2, Bonde Ranch, during fiscal year 2024/25. The area of land to be assessed is located in the City of Pleasanton, Alameda County.

SECTION 2. The City Council intends to continue to levy and collect assessments within Lighting & Landscape Maintenance District No. 1993-2, Bonde Ranch, during fiscal year 2024/25.

SECTION 3. The improvements to be made in this assessment district are generally described as follows:

The maintenance and repair of designated landscaped areas, open space slopes, fuel transition zones (fire breaks), entry features, open space drainage ditches, irrigation systems, trees in the open space and designated landscape areas, and the furnishing of water and power for irrigation systems, together with all appurtenance and incidental expenses within Tract 6483 and Tract 6518, City of Pleasanton.

SECTION 4. In accordance with this resolution directing the filing of an annual report, the City Engineer has filed with the City Clerk the report required by the Landscaping and ATTACHMENT 4

Lighting Act of 1972. All interested persons are referred to that report for a full and detailed description of the improvements, the boundaries of the assessments upon assessable lots and parcels of land within the assessment district.

SECTION 5. On Tuesday, the 18th day of June 2024, at the hour of 7:00 pm, the City Council will conduct a public hearing on the question of the levy of the proposed annual assessment. The Council meeting will be held in accordance with Government Code Section 54954(e). To improve access to public information, residents may access meetings remotely through the City’s website.

SECTION 6. The City Clerk is authorized and directed to give the notice of hearing required by the Landscaping and Lighting Act of 1972.

SECTION 7. City Clerk shall certify to the passage of this resolution and enter it into the book of original resolutions.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Pleasanton at a regular meeting held on May 21, 2024.

I, Jocelyn Kwong, City Clerk of the City of Pleasanton, California, certify that the foregoing resolution was adopted by the City Council at a regular meeting held on the 21st day of May, 2024, by the following vote:

Ayes:

Noes:

Absent:

Abstain:
_____________________________
Jocelyn Kwong, City Clerk
APPROVED AS TO FORM:
____________________________
Daniel G. Sodergren, City Attorney

i

CITY OF PLEASANTON
Landscape Maintenance District No. 1993-2, Bonde Ranch
Engineer’s Report
Fiscal Year 2024-25
May 2024
Pursuant to the Landscaping and Lighting Act of 1972, government code and article XIIID of the California Constitution

EXHIBIT A

ii
City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2024-25 (This page intentionally left blank)

i
City of Pleasanton
Mayor and City Council
Karla Brown, Mayor
Julie Testa, Vice Mayor
Valerie Arkin, Councilmember
Jack Balch, Councilmember
Jeff Nibert, Councilmember
City Manager
Gerry Beaudin
City Engineer
Adam Nelkie

ii
City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2024-25 Table of Contents
PAGE NO.

Introduction .......................................................................................................................................... 1 Overview ............................................................................................................................................... 1 Landscape Maintenance District No. 1993-2, Bonde Ranch............................................................. 1 Engineer’s Report and Continuation of Assessments........................................................................ 2 Legal Requirements ........................................................................................................................... 3 Plans & Specifications ........................................................................................................................ 5 Introduction......................................................................................................................................... 5 Bonde Ranch Description of Improvements....................................................................................... 6 Recommended Capital Improvements............................................................................................... 7 Estimate of Cost and Budget – Fiscal Year 2024-25........................................................................ 8 Notes to Estimate ............................................................................................................................... 8 Method of Assessment Apportionment ..........................................................................................10 Method of Apportionment .................................................................................................................10 Discussion of Benefits ......................................................................................................................10 General vs. Special Benefits ............................................................................................................12 Calculating General Benefit and Special Benefit Paid from Other Funds .......................................13 Zones of Benefit................................................................................................................................17 Method of Assessment.....................................................................................................................18 Residential Properties ......................................................................................................................19 Other Properties ...............................................................................................................................19 The Assessment Rate does not Increase Annually .........................................................................19 Appeal of Assessments Levied to Property .....................................................................................19 Assessment Funds Must be Expended Within the Maintenance District Area................................20 Assessment........................................................................................................................................21 Certificates Page................................................................................................................................23 Assessment Diagram ........................................................................................................................24 Assessment Roll FY 2024-25 – Landscape Maintenance District No. 1993-2 Bonde Ranch.....25

iii
City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2024-25 List of Figures
Figure 1 – Estimate of Costs and Revenues..................................................................................... 7 Figure 2 – Summary Cost Estimate – Bonde Ranch LMD No. 1993-2 ..........................................20 Figure 3 – Assessment Roll FY 2024-25 – Bonde Ranch LMD No. 1993-2 ................................. 24

1 Introduction
Overview
The City of Pleasanton (“City”) is located in Alameda County, and covers an area of

24.3 square miles, with over 24,500 assessor parcels, and approximately 80,000 residents. The City currently has five Landscape Maintenance Districts (“Districts”) that provide services to a combined total of 680 parcels:
• 1984-1 Ponderosa (Del Prado) – 344 parcels
• 1993-1 Windsor – 90 parcels
• 1993-2 Bonde Ranch – 103 parcels
• 1994-1 Oak Tree Farm – 42 parcels
• 1995-1 Moller Ranch – 101 parcels
The five District’s benefit assessments were established prior to the approval of Proposition 218 in 1996. The purpose of these Districts is to provide funding for the installation, maintenance and servicing of local landscaping and lighting improvements (“Improvements”) within each District’s service area.

Landscape Maintenance District No. 1993-2, Bonde Ranch
Assessment Background
The Bonde Ranch Landscape Maintenance District No. 1993-2 (“District 1993-2” or “Maintenance District”) was formed in 1993 as a Condition of Approval for the Bonde Ranch development, to fund certain landscape improvements within the Bonde Ranch subdivision.

The subdivision includes 102 single-family residence parcels and 1 parcel owned by the City that has a water tank. The total number of parcels served by District 1993-2 at present time is 103 parcels.

The Bonde Ranch Landscape Maintenance District No. 1993-2 purpose is to fund the maintenance of the existing Bonde Ranch designated landscaped areas, open space slopes, fuel transition zones (fire breaks), entry features, open space drainage ditches, irrigation systems, trees in the open space and designated landscaped areas, groundcover and irrigation systems.

District 1993-2 is funded by the benefit assessment approved in 1993 (“Assessment”), and it does not receive any direct revenues from property taxes or any other funding sources. The fiscal year 2024-25 assessments for District 1993-2 will remain at the same assessment rate of $257.22 per parcel per year. With a total of 103 parcels in the district (including one public parcel), the fiscal year 2024-25 total assessment will be $26,489.35.

2 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2024-25 Over the years, operational costs and utility costs have increased, however, the assessment revenues were lowered in 1999 and 2000 and have remained the same since 2000. The fiscal year 2024-25 total assessment revenue will not be sufficient to fund the maintenance of all common areas, including water costs, county assessment fees, city administration fees, replacement of plantings, irrigation systems, fencing, and other district improvements. The Engineer’s Report projects a shortage that will require the City to continue to reduce landscape maintenance and water use so that maintenance costs remain below assessments.

Water costs increased thirty percent starting in calendar year 2024, are scheduled to increase another twelve percent in 2025, and are projected to continue to increase in future years to pay for necessary infrastructure and treatment costs. The water has been turned off at the Bonde Ranch LMD because of the state of disrepair of the irrigation system so water rate increases do not currently impact the Bonde Ranch LMD, but the rate increases will have a significant impact if the irrigation system is restored.

Continued cuts in maintenance to pay for the increasing fire management and necessary tree pruning/removal costs will lower the level of maintenance well below the maintenance standards of the district established by Ordinance 1509. In addition, the city can no longer continue to subsidize staff administration time or the consultant fees for a Proposition 218-compliant vote. The consultant fees for the Proposition 218- compliant vote will cost approx. $40,000 plus staff time and will need to come from the reserve fund.

City staff began the process of potentially increasing the assessments for the Bonde Ranch Landscape Maintenance District in early 2022 through a Proposition 218 compliant voting procedure. However, the property owners that attended the neighborhood outreach meeting on February 3, 2022, or communicated to staff via phone or email expressed strong opposition to increasing the assessment. Staff placed the pursuit of a sustainable assessment amount on hold at that time.

If additional funding from a new or increased assessment is not implemented, the city will be forced to continue to reduce maintenance, postpone facilities upgrades and tree pruning, and permanently shut off the irrigation system; resulting in a continuing deterioration of the grounds and facilities. This can open the district up to fines or litigation. To limit liability for the district, it will be necessary for the city to continue to pursue a proposition 218-compliant vote, incurring significant consultant costs each time, until a sustainable assessment has been agreed to by property owners.

Engineer’s Report and Continuation of Assessments
Each year for which the assessments will be continued, the City Council must direct the preparation of an Engineer's Report, budgets, and proposed assessments for the upcoming fiscal year. The city staff time to perform this work has been previously subsidized by the city. After the Engineer's Report is completed, the City Council may preliminarily approve the Engineer's Report and proposed assessments and establish

3 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2024-25 the date for a public hearing on the continuation of the assessments. This Report was prepared pursuant to the direction of the City Council.

This Engineer’s Report ("Report") was prepared to establish the budget for the continued maintenance, improvements, and services (“Improvements”) that would be funded by the proposed fiscal year 2024-25 assessments, determine the benefits received by property from the Improvements, and the method of assessment apportionment to lots and parcels within the Maintenance District. This Report and the proposed assessments have been made pursuant to the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code ("Act") and Article XIIID of the California Constitution (“Article”).

If the City Council approves this Engineer's Report and the continuation of the assessments by resolution, a notice of public hearing must be published in a local paper at least 10 days prior to the date of the public hearing. The resolution preliminarily approving the Engineer's Report and establishing the date for a public hearing is used for this notice.

Following the minimum 10-day period after publishing the notice, a public hearing is held for the purpose of allowing public testimony about the proposed continuation of the assessments. This hearing is currently scheduled for June 18, 2024. At this hearing, the City Council would consider approval of a resolution confirming the continuation of the assessments for fiscal year 2024-25. If so confirmed and approved, the assessments would be submitted to the County Auditor/Controller for inclusion on the property tax rolls for Fiscal Year 2024-25.

Legal Requirements
Proposition 218
The City of Pleasanton’s five Landscape and Lighting Maintenance Districts were formed prior to the passage of Proposition 218, “The Right to Vote on Taxes Act,” which was approved by the voters of California on November 6, 1996, and is now Article XIIIC and XIIID of the California Constitution. (Proposition 218 provides for benefit assessments to be levied to fund the cost of providing services, improvements, as well as maintenance and operation expenses to a public improvement that benefits the assessed property). Although these assessments are consistent with Proposition 218, the California judiciary has generally referred to pre-Proposition 218 assessments as “grandfathered assessments” and held them to a lower standard than post-Proposition 218 assessments.

The existing Assessment Districts will be re-assessed consistent with the procedures and requirements imposed by Proposition 218, which describes several important requirements, including property-owner balloting and approval for the imposition of new or increased assessments.

This Engineer’s Report is consistent with the requirements of Article XIIIC and XIIID of the California Constitution because the Improvements to be funded are clearly defined,

4 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2024-25 the Improvements are directly available to and directly benefit property in the Maintenance District, and the Improvements provide a direct advantage to property in the Maintenance District that would not be received in absence of the assessments.

5 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2024-25 Plans & Specifications
Introduction
The work and Improvements to be undertaken by the City of Pleasanton within the Landscape Maintenance District No. 1993-2, Bonde Ranch, and the costs thereof paid from the levy of the annual assessments, provide special benefit to Assessor Parcels within the Maintenance District as defined in the Method of Assessment herein.

The Landscaping and Lighting Act of 1972 (Streets & Highways Code § 22525 et seq.), (the “Act”), defines improvement, maintenance, servicing, and incidental expenses as follows:
“Improvement” means one or any combination of the following:

The installation or planting of landscaping.

The installation or construction of statuary, fountains, and other ornamental structures and facilities.
installation or construction of public lighting facilities, including, but not limited to, traffic signals.
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, including, but not limited to, grading, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities.

The installation of park or recreational improvements, including, but not limited to, all of the following:
preparation, such as grading, leveling, cutting and filling, sod, landscaping, irrigation systems, sidewalks, and drainage.

Lights, playground equipment, play courts, and public restrooms.

The maintenance or servicing, or both, of any of the foregoing, and of any improvement authorized by subdivision (i).

The acquisition of land for park, recreational, or open-space purposes.

The acquisition of any existing improvement otherwise authorized pursuant to this section.

The acquisition or construction of any community center, municipal auditorium or hall, or similar public facility for the indoor presentation of performances, shows, stage productions, fairs, conventions, exhibitions, pageants, meetings, parties, or other group events, activities, or functions, whether those events, activities, or functions are public or private. “Maintain” or “maintenance” means the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including:

Repair, removal, or replacement of all or any part of any improvement. for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury.

6 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2024-25 The removal of trimmings, rubbish, debris, and other solid waste.

The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti.
“Service” or “servicing” means the furnishing of:

Electric current or energy, gas, or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements.

Water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other improvements.
“Incidental expenses” include all of the following:

The costs of preparation of the report, including plans, specifications, estimates, diagram, and assessment.

The costs of printing, advertising, and the giving of published, posted, and mailed notices.

Compensation payable to the county for collection of assessments.

Compensation of any engineer or attorney employed to render services in proceedings pursuant to this part.

Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements.

Any expenses incidental to the issuance of bonds or notes pursuant to Section 22662.5.

Costs associated with any elections held for the approval of a new or increased assessment.

The City of Pleasanton’s work and Improvements (“Improvements”) for the property within the Maintenance District that is owned or maintained by the City of Pleasanton, are consistent with these definitions. Plans and specifications for these Improvements are filed with the City of Pleasanton Landscape Architect and are incorporated herein by reference.

Bonde Ranch Description of Improvements
The improvements which are the subject of this Report are briefly described as follows:

The maintenance and repair of designated landscaped areas, open space slopes, fuel transition zones (fire breaks), entry features, open space drainage ditches, irrigation systems, trees in the open space and designated landscaped areas, together with all appurtenant and incidental expenses within Tract 6483, City of Pleasanton. The District property directly behind the Ventana Hills neighborhood has been removed from the Bonde Ranch Landscape Maintenance District, as indicated in the updated map, and is now incorporated into the Bonde Ranch Open Space.

Landscape plans and specifications for the improvements to this Landscape District are those prepared by Samson Associates, dated July 1992. These plans and specifications have been filed separately with the Clerk of the Legislative body and are incorporated in this report by reference.

7 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2024-25 Recommended Capital Improvements
Improvements such as complete irrigation and planting replacement in Landscape Maintenance District No. 1993-2, Bonde Ranch, are overdue. However, the reserve fund balance is insufficient to make these improvements.

The City drafted a schedule of recommended capital improvement projects, such as the replacement of the irrigation system and repair of the fencing, that need to be addressed and their respective cost estimate, as well as a planned replacement/renovation schedule. To fund the necessary capital improvements and maintain the District to a similar level to when the District was created staff estimates that the annual assessments would need to be increased from $257.22 to $620-750 depending on the maintenance level. The City intends to re-start efforts with the consultant to develop the level of maintenance and recommended capital improvements in 2025-26 to create a comprehensive maintenance and improvement plan and define associated costs.

8 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2024-25 Estimate of Cost and Budget – Fiscal Year 2024-25
The following budget shows the estimate of cost of the Improvements to be funded by the Maintenance District in Fiscal Year 2024-25.

Figure 1 – Estimate of Costs and Revenues
City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch
2024-25 Estimate of Costs
Budget
Installation, Maintenance, and Servicing Costs
Landscaping (maintenance)
Basic maintenance $6,000.00
Extra worki $5,747.73
Water $1,000.00
Fuel transition Zones (Firebreak) 287,000 sq. ft.

Weed abatement $11,502.00
Total for Installation, Maintenance and Servicing $24,249.73 Incidental and Administration Costsii
City of Pleasanton Assessment Administration $1,800.00
County Fees for Collection of Assessment $439.62
Total Incidental and Administrative Costs $2,239.62
Amount to/(from) Reserve Fundiii
Reserve/Long-term Replacement Fund for scheduled long-term replacement of various district improvements ($0.00)
Total Costs $26,489.35
Budget Allocation to Property
Single Family
Number of Equivalent Assessment Total
Parcels/Units Units (SFE)iv Rate Assessmentv
103 103 $257.22 $26,489.35
Explanation of Annual Assessment Rate per Unit:
102 units @ $257.22 assessment per year (= $252.91 + $4.31 County Collection Fee) 1 unit @ $252.91 assessment per year (City parcel, savings of the $4.31 County Collection Fee) Notes to Estimate
i. Contingency to address maintenance that is not routine in nature, such as repair or replacement of broken irrigation valves and lines or pruning/removing failed trees or tree limbs. ii. Incidental and administration cost estimates include City staff hours dedicated to the administration of the assessment (including staff time to bid work, monitor contracts and contractors, respond to residents’ inquiries, etc.), county charges for inclusion of assessments on property tax bills, and other incidental costs.

9 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2024-25 iii. At the time of this report a fund balance of approximately $25,000 exists for the Landscape Maintenance District 1993-2. Significant capital improvements are required to maintain the landscape and irrigation to previous levels so the City will need to continue to reduce maintenance and water use. Staff intends to utilize a portion of the reserve to perform necessary fence repair and tree maintenance services.

Reserve/replacement funds are held in an interest-bearing account until needed for repairs to the irrigation system, landscaping or other District features.
iv. The rate shown here is for a single-family home or its equivalent. For the definition of the term Single Family Equivalent (SFE) and rates for other types of property, see the section titled, “Method of Assessment” and the sections following it in this report.
v. The Act requires that proceeds from the assessments must be deposited into a special fund that has been set up for the revenues and expenditures of the Maintenance District. Moreover, funds raised by the assessment shall be used only for the purposes stated within this Report. Any balance remaining at the end of the Fiscal Year, June 30, must be carried over to the next Fiscal Year. The District may also establish a reserve fund for contingencies and special projects as well as a capital improvement fund for accumulating funds for larger capital improvement projects or capital renovation needs. Any remaining balance would either be placed in the reserve fund, the capital improvement fund, or would be used to reduce future years' assessments. The Landscape Maintenance District 1993-2, Bonde Ranch reserve/replacement funds are held in an interest-bearing account until needed for repairs to the masonry walls, entry signage, irrigation systems, landscaping, or other District features.

10 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2024-25 Method of Assessment Apportionment
Method of Apportionment
This section of the Engineer's Report includes an explanation of the benefits to be derived from the installation, maintenance and servicing of Improvements and landscaping for the Maintenance District and the methodology used to apportion the total assessment to the properties within the Maintenance District.

The method used for apportioning the assessment is based upon the relative special benefits to be derived by the properties in the Maintenance District over and above general benefits conferred on real property or to the public at large. The assessment is apportioned to lots and parcels in proportion to the relative cost of the special benefits from the Improvements. Special benefit is calculated for each parcel in the Maintenance District using the following process:
i. Identification of all benefit factors derived from the Improvements. ii. Calculation of the proportion of these benefits that are general. iii. Determination of the relative special benefit per property type. iv. Calculation of the specific assessment for each parcel based upon special vs. general benefit, location, property type, property characteristics, improvements on property and other supporting attributes.

The parcels within the Landscape Maintenance District No. 1993-2, Bonde Ranch, consist of all Assessor Parcels within the boundaries as defined by the Assessment Diagram included within this Report and the Assessor Parcel Numbers listed within the included Assessment Roll. The method used for apportioning the assessments is based upon the proportional special benefits to be derived by the properties in the Maintenance District, over and above general benefits conferred on real property or to the public at large. The apportionment of special benefits is a two-step process: the first step is to identify the types of special benefits arising from the Improvements, and the second step is to allocate the assessments to properties based on the estimated relative special benefit for each type of property.

Discussion of Benefits
The assessments can only be levied based on the special benefit to a property. This benefit is received by a property over and above any general benefits. With reference to the requirements for assessments, Section 22573 of the Landscaping and Lighting Act of 1972 states:
“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.”

11 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2024-25 Proposition 218, as codified in Article XIIID of the California Constitution, has confirmed that assessments must be based on the special benefit to property:
“No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.” In this case, the 2008 Silicon Valley Taxpayers Association, Inc. vs Santa Clara County Open Space Authority (“SVTA”) decision provides enhanced clarity to the definition of special benefits to properties from similar public improvements in three distinct areas:
i. Proximity
ii. Expanded or improved access
iii. Views
The SVTA decision also clarifies that a special benefit is a service or improvement that provides a direct advantage to a parcel, and that indirect or derivative advantages resulting from the overall public benefits from a service or improvement are general benefits.

Proximity, improved access and views, in addition to the other special benefits listed herein further strengthen the basis of these assessments.

The following benefit categories summarize the types of special benefits to residential and other lots and parcels resulting from the installation, maintenance and servicing of landscaping, irrigation, sidewalks, signs, lights, and other improvements to be provided with the assessment proceeds. These categories of special benefits are derived from the statutes passed by the California Legislature and studies which describe the types of special benefits received by property from maintenance and improvements such as those provided by the City of Pleasanton, Landscape Maintenance District No. 1993-2, Bonde Ranch. These types of special benefits are summarized as follows:
i. Improved access to landscaped areas and other permanent public improvements ii. Proximity to improved landscaped areas and other permanent public improvements
iii. Improved views
iv. Extension of a property’s outdoor areas and landscaped areas for properties within close proximity to the Improvements
v. Creation of individual lots for residential use that, in the absence of the assessments, would not have been
The above benefit factors, when applied to property in the Maintenance District, specifically increase the utility and usefulness of the property within the Maintenance District. For example, the assessments will provide funding to improve and maintain the public landscaping next to the parcels within the Maintenance District. Such improved and well-maintained landscaping enhances the overall quality, desirability, utility and safety of the properties.

12 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2024-25 General vs. Special Benefits
Article XIIID, Section 4(a) of the California Constitution requires any local agency proposing to increase or impose a benefit assessment to “separate the general benefits from the special benefits conferred on a parcel.” The rationale for separating special and general benefits is to ensure that property owners subject to the benefit assessment are not paying for general benefits. Property may be assessed to fund improvements to the extent of the special benefits conferred by the Improvements; but general benefits are not assessable. Accordingly, a separate estimate of the special and general benefit is given in this section.

Article XIIID never defines the term “general benefit.” The definition of special benefit in Section 2(i) includes the statement that general enhancement of property value does not constitute a special benefit. A general benefit may be described as “an indirect, derivative advantage” resulting from the improvements. One infers from Article XIIID that all benefit is either general or special.

In other words:

Total
Benefit = General Benefit
+ Special
Benefit
There is no widely accepted or statutory formula for quantifying the amount of any general benefit that is identified.

In this Report, the general benefit is first identified, generously estimated, and then budgeted so that it is funded, as required by Proposition 218, by sources other than the Assessment.

A formula to estimate the general benefit is listed below:

General
Benefit =
Benefit to Real
Property Outside the
Assessment District
+
Benefit to Real Property Inside
the Assessment District that is
Indirect and Derivative
+
Benefit to
the Public
at Large
Special benefit, on the other hand, is defined in the California constitution as “a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large”. A special benefit is conferred to a property if the property “receives a direct advantage from the improvement (e.g., proximity to setback landscaping).” In the Maintenance District, as noted, properties have close and unique proximity, views of and access to the Improvements, and uniquely improved utility and desirability from the Improvements, and other properties and the public at large do not receive such benefits because they do not have proximity, access to or views of the Improvements. Therefore, the overwhelming proportion of the benefits conferred to a property is special, and only minimal general benefit is conferred on property outside the Maintenance District or to the public at large.

13 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2024-25 This Engineer’s Report includes a specific, quantified calculation of general benefits, as described below, that is based in part on the use by people outside of the Maintenance District. Moreover, the proportionality of the Assessments to the special benefits conferred on each parcel, based in large part on proximity, is established as well.

Calculating General Benefit and Special Benefit Paid from Other Funds In this section, the total general benefit, which must be paid from other non-assessment funds, is conservatively estimated, quantified, described, and separated, and then budgeted to absolutely ensure that it is funded by sources other than this assessment.

Benefit to Property Outside the Maintenance District = 3.3% In summary, real property located within the boundaries of the Maintenance District distinctly and directly benefits from closer proximity, access and views of the Improvements funded by the Assessments, the creation of developable parcels, and from the extension of the usable land area provided by the assessments. The Improvements are specifically designed to serve local properties in the Maintenance District, not other properties nor the public at large.

The Maintenance District has been narrowly drawn to include those parcels that receive a direct advantage from the Improvements. The public at large and other properties outside the Maintenance District receive only limited benefits from the Improvements because they do not have proximity, good access or views of the Improvements. These are special benefits to property in the Maintenance District in much the same way that sewer and water facilities, sidewalks and paved streets enhance the utility and desirability of specific proximate properties and make them more functional to use, safer and easier to access.

Properties within the proposed Maintenance District receive almost all the special benefits from the Improvements because properties in the Maintenance District enjoy unique and close proximity and access to the Improvements that are enjoyed less by other properties or the public at large. The landscaping Improvements are specifically designed to benefit the properties in the Maintenance District.

Furthermore, there are multiple, proximate open space, landscaped areas, and other improvements outside of the Maintenance District, funded by other sources, that provide most of the open space and landscaping benefits to nearby parcels that are outside of the Maintenance District.

In other words, the landscaping Improvements maintained by the proposed Assessments especially benefit the properties within the Maintenance District, but other nearby improvements primarily benefit other proximate properties.

Nonetheless, there are certain properties that are outside the boundaries of the Maintenance District that may benefit from the landscape improvements. A total of no more than 6 proximate parcels have been identified that receive some special benefit from the improvements including improved views, proximity and/or access, but do not receive extension of outdoor areas nor the special benefit of

14 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2024-25 parcel creation. Since these adjacent properties only receive a 3 of the 5 major special benefits, a 60% factor is applied.

Total General Benefit to Properties Outside of the District = 3.3% Assumptions
6 parcels outside and adjacent to the District
103 parcels in the Maintenance District
Calculation
General Benefit to Property outside the Improvement District = (6 / (6 + 103)) * 60% = 3.3 %
Although it can reasonably be argued that Improvements inside, but near the Maintenance District boundaries are offset by similar landscape improvements provided outside, we use the more generous approach of finding that 3.3% of the Improvements may be of benefit to property outside of the Maintenance District.

Benefit to Property Inside the District that is Indirect and Derivative = 0.0% The “indirect and derivative” benefit to property within the Maintenance District is particularly difficult to calculate. A solid argument can be presented that all benefit within the Maintenance District is special because the Improvements are clearly “over and above” and “particular and distinct” when compared with the unique proximity, access and views of the Improvements enjoyed by benefiting properties in the Maintenance District.

Nevertheless, the SVTA decision indicates that there may be a general benefit “conferred on real property located in the district.” A measure of the general benefits to property within the Maintenance District is the percentage of land area within the Maintenance District that is publicly owned, open to the public, and used for regional purposes such as major roads, rail lines, hospitals, and other regional facilities because such properties, while physically within the Maintenance District, are used for regional purposes and could provide indirect benefits to the public at large. In this case, essentially 0% of the land area is used for such regional purposes.

Benefit to the Public at Large = 10%
The general benefit to the public at large can be estimated by the proportionate amount of time that the Maintenance District’s public landscaped areas and facilities are used and enjoyed by individuals who are not residents, employees, customers, or property owners in the Assessment Area. Based on surveys and research in which visitors to similar landscape, open space and parks, at various times of the day, evening, and week, were asked to look at a District map and to identify whether they lived or worked within the City, less than 5% of the use of similar landscape, open space, parks or recreation areas is by the public at large.

15 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2024-25 When people outside the Maintenance District use landscape, open space, parks, or recreation areas, they diminish the availability of such facilities for people within the Maintenance District. Therefore, another 5% of general benefits are allocated for people within the Maintenance District. Combining these two elements of general benefit, we find that 10% of the benefits from the Improvements are general benefits to the public at large.

Total General Benefits to be Financially Contributed from Other Funds =

13.3%
Using a sum of these three measures of general benefit, we find that approximately 13.3% of the benefits conferred by the Improvements may be general in nature and should be funded by sources other than the Assessments.

General Benefit Calculation

3.3% (Outside the Maintenance District)
+ 0.0% (Inside the Maintenance District – indirect and derivative) + 10.0% (Public at Large)
= 13.3% (Total General Benefit)
Source of Financial Contributions from Other Funds to Satisfy the 13.3% Requirement
The general benefit contribution is paid in part from other “in-kind”, non-monetary contributions from the City in the form of infrastructure critical to the continued maintenance of the Maintenance District Improvements, as described below.

Also, general benefit contributions come from the “annuity” value of the improvements that were constructed by the developer.

The City of Pleasanton owns, maintains, rehabilitates, and replaces the curb and gutter along the border of the Maintenance District. This curb and gutter serve to support, contain, retain, manage irrigation flow and growth, and provide a boundary for the Improvements. The contribution from the City of Pleasanton toward general benefit from the maintenance, rehabilitation, and replacement of the curb and gutter is conservatively estimated to be 10%, based upon the relative cost to construct and maintain this critical local infrastructure. In other words, if the Maintenance District were required to construct and maintain the local curb and gutter, the budget would increase by at least 10%.

The City of Pleasanton owns and maintains a storm drainage system along the border of the Maintenance District. This system serves to prevent flooding and associated damage to the Improvements and manage urban runoff including local pollutants loading from the Improvements. The contribution from the City of Pleasanton toward general benefit from the maintenance, rehabilitation, and replacement of the local storm drainage system is conservatively estimated to be

16 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2024-25 10%, based upon the relative cost to construct and maintain this critical local infrastructure. In other words, if the Maintenance District were required to construct and maintain the local storm drainage system, the budget would increase by at least 10%.

The City of Pleasanton owns and maintains local public streets throughout the Maintenance District. These public streets provide access to the Improvements for their enjoyment as well as efficient maintenance. The contribution from the City of Pleasanton toward general benefit from the maintenance, rehabilitation, and replacement of the local public streets is conservatively estimated to be 10%, based upon the relative cost to construct and maintain this critical local infrastructure. In other words, if the Maintenance District were required to construct and maintain the local public streets, the budget would increase by at least 10%.

The value of the initial Improvements constructed by the Developer can be quantified and monetized as an annuity to be amortized. Since the initial Improvements were performed and paid for by non-assessment funds, this “annuity” can be used to offset general benefit costs and is conservatively estimated to contribute 20%. In other words, if the Maintenance District were required to construct all the Improvements, the annual budget would increase by at least 20%.

In other words, there is a 13.3% contribution needed to offset the general benefits conferred by the Improvements, and there is a 50% contribution from the City of Pleasanton supporting local infrastructure, along with the amortized value of initial construction. This 50% contribution more than satisfies the general benefit requirements.

The estimates used above for the City of Pleasanton’s “in-kind”, non-monetary contributions for the maintenance, rehabilitation and replacement of the curbs and gutters, storm drainage systems, and local streets (the “supportive infrastructure”). The value of the initial Improvements constructed by the Developer are based on industry standards; typical and standard quantity ratios between this supportive infrastructure (including the City’s relative associated maintenance costs) and similar Improvements; and on the assessment Engineer’s professional experience on planning and working on such projects.

17 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2024-25 Source of Contributions from Other Funds to Satisfy 13.3% Requirement City non-monetary contributions:

10.0% (Curb and gutter)
+ 10.0% (Storm drainage system)
+ 10.0% (Public roads)
+ 20.0% (Amortized value of initial construction)
= 50.0% (Total General Benefit paid from Other Funds)
Zones of Benefit
The boundaries of the Assessment Area are carefully drawn to only include the properties that are proximate to the Improvements and that would materially benefit from the Improvements.

In SVTA, the court noted that even a local agency-wide assessment district is appropriate under the right conditions:
“Thus, if an assessment district is narrowly drawn, the fact that a benefit is conferred throughout the district does not make it general rather than special. In that circumstance, the characterization of a benefit may depend on whether the parcel receives a direct advantage from the improvement (e.g., proximity to a park) or receives an indirect, derivative advantage resulting from the overall public benefits of the improvement (e.g., general enhancement of the district's property values).”
The court therefore acknowledged the appropriateness of a District-wide assessment so long as each parcel receives a direct advantage from the assessment-funded improvement or service. As demonstrated in this Report, each parcel in the Maintenance District receives a direct advantage and special benefit from the Improvements.

In the Maintenance District, the advantage that each parcel receives from the Improvements is direct, and the boundaries are narrowly drawn to include only parcels that benefit from the Assessment. Therefore, the even spread of assessment throughout the narrowly drawn district is indeed consistent with the SVTA decision. The benefits from the Improvements within the Maintenance District do not vary further based on the proximity of the parcels to the Improvements because the increased benefits of greater proximity to the Improvements are generally offset by a parallel increase in negative factors such as higher levels of traffic, noise, etc. that comes with increased proximity.

18 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2024-25 Consequently, since all parcels in the Maintenance District have good access and proximity to the Improvements and the benefits of relatively closer proximity are offset by other factors, additional proximity is not considered to be a factor in determining benefits within the Maintenance District. Therefore, zones of benefit are not justified or needed within the Maintenance District.

Method of Assessment
As previously discussed, the Assessments provide comprehensive Improvements that clearly confer direct and special benefits to properties in the Maintenance District.

The allocation of special benefits to property is primarily based on the type of property and the size of a property. These benefits can also partially be measured by the occupants on property in the Maintenance District because such parcel population density is a measure of the relative benefit a parcel receives from the Improvements. It should be noted that many other types of “traditional” assessments also use parcel population densities to apportion the assessments. For example, the assessments for sewer systems, roads and water systems are typically allocated based on the population density of the parcels assessed. Therefore, the apportionment of benefits is reasonably based on the type of parcel, the size of parcels and the population density of parcels.

A critical step in apportioning assessments is to determine the relative special benefit for each property. This process involves determining the relative benefit received by each property in relation to a single-family home, or, in other words, on the basis of Single-Family Equivalent (SFE) units. This SFE methodology is commonly used to distribute assessments in proportion to estimated special benefits and is generally recognized as providing the basis for a fair and appropriate distribution of assessments.

For the purposes of this Engineer’s Report, all properties are designated an SFE value, which is each property’s relative benefit in relation to a single-family home on one parcel. In this case, the "benchmark" property is the single-family detached dwelling which is one Single Family Equivalent unit or one SFE.

Finally, the special benefits to be derived from the Assessments will be conferred on a property and are not based on a specific property owner’s use of the Improvements, a specific property owner’s occupancy of a property, or the property owner’s demographic status such as age or the number of dependents. The benefits allotted to a property are related to the average number of people who could potentially live on, work at, or otherwise could occupy a property, not how the property is currently used by the present owner. Therefore, the number of people who could, or potentially, live on, work at, or otherwise occupy a property is one indicator of the relative level of benefit received by a property.

In conclusion, the Assessment Engineer determined that the appropriate method of assessment apportionment should be based on the type of property, the relative size of the property, its location, its relative population, and its proximity to the landscaping and open space facilities. This method is further described below.

19 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2024-25 Residential Properties
The Bonde Ranch development is a residential single-family development project consisting of a total of 103 parcels, 102 single-family home parcels, and 1 publicly owned parcel used for a water tank. As such, each residential property receives similar benefit from the proposed Improvements.

Therefore, the Engineer has determined that the appropriate method of apportionment of the benefits derived by all parcels is on a dwelling unit or single-family residence basis. All improved properties, or properties proposed for development, are assigned one Single Family Equivalent unit or 1 SFE factor equal to the number of dwelling units developed or planned for the property.

Other Properties
Article XIIID stipulates that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the Assessment.

All properties that are specially benefited are assessed. Another publicly owned property that is used for purposes similar to private residential, commercial, industrial, or institutional uses are benefited and assessed at the same rate as such privately owned property.

Miscellaneous, small, and other parcels such as roads, right-of-way parcels, and common areas typically do not generate significant numbers of employees, residents, customers, or guests, who would have access to or use the Improvements. These miscellaneous parcels, therefore, receive no benefit from the Improvements and are assessed an SFE benefit factor of 0 SFEs.

The Assessment Rate does not Increase Annually
It should also be noted that the Maintenance District assessment rates cannot be increased annually, and the total revenues remain the same year after year, assessing $257.22 per SFE or parcel, which is the amount assessed since 2000-01. To increase the annual assessment rate beyond the original assessment rate or to add an annual Consumer Price Index escalator to the assessment rate, approval of the property owners is required via a Proposition 218 assessment ballot proceeding.

Appeal of Assessments Levied to Property
Any property owner who feels that the assessment levied on their property is in error as a result of incorrect information being used to apply the foregoing method of assessment may file a written appeal with the City of Pleasanton City Engineer or his or her designee. Any such appeal is limited to the correction of an assessment during the then-current Fiscal Year and applicable law. Upon the filing of any such appeal, the City of Pleasanton City Engineer or his or her designee will promptly review the appeal and any information provided by the property owner. If the City of Pleasanton City Engineer or his or her designee finds that the assessment should be modified, the appropriate

20 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2024-25 changes shall be made to the Assessment Roll. If any such changes are approved after the Assessment Roll has been filed with the County for collection, the City Engineer or his or her designee is authorized to refund to the property owner the amount of any approved reduction.

Assessment Funds Must be Expended Within the Maintenance District Area The net available Assessment funds, after incidental, administrative, financing, and other costs, shall be expended exclusively for Improvements within the boundaries of the Maintenance District and appropriate incidental and administrative costs as defined in the Plans and Specifications section.

21 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2024-25 Assessment
WHEREAS, the City of Pleasanton City Council directed the undersigned Engineer of Work to prepare and file a report presenting an estimate of costs, a diagram for the Maintenance District, and an assessment of the estimated costs of the Improvements upon all assessable parcels within the Maintenance District; NOW, THEREFORE, the undersigned, by virtue of the power vested in me under the Act, Article XIIID of the California Constitution, and the order of the City Council of the City of Pleasanton, hereby makes the following assessment to cover the portion of the estimated cost of the Improvements, and the costs and expenses incidental thereto to be paid by the Maintenance District.

The amount to be paid for said Improvements and the expense incidental thereto, to be paid by the Maintenance District for the Fiscal Year 2024-25 is generally as follows:

Figure 2 – Summary Cost Estimate – Bonde Ranch LMD No. 1993-2 Budget Item Budgeted
Cost
Installation, Maintenance, and Servicing Costs $24,249.73 Incidental and Administration Costs $2,239.62
Amount to/(from) Reserve Fund ($0.00)
Total Budget $26,489.35
As required by the Act, an Assessment Diagram showing the exterior boundaries of the Maintenance District is hereto attached and incorporated herein by reference. The distinctive number of each parcel or lot of land in the Maintenance District is its Assessor Parcel Number appearing on the Assessment Roll.

I do hereby assess and apportion the net amount of the cost and expenses of the Improvements, including the costs and expenses incident thereto, upon the parcels and lots of land within the Maintenance District, in accordance with the special benefits to be received by each parcel or lot, from the Improvements, and more particularly set forth in the Estimate of Cost and Method of Assessment in the Report.

22 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2024-25 The Assessment is made upon the parcels or lots of land within the Maintenance District in proportion to the special benefits to be received by the parcels or lots of land, from the Improvements.

The Maintenance District’s assessment rate for fiscal year 2024-25 remains unchanged at the same assessment rate used last year of $257.22 per single-family equivalent (SFE) benefit unit.

Each parcel or lot of land is described in the Assessment Roll by reference to its parcel number as will be shown on the Assessor's Maps of Alameda County for the Fiscal Year 2024-25. For a more particular description of the property, reference is hereby made to the deeds and maps on file and of record in the office of the County Recorder of the County.

I hereby will place opposite the Assessor Parcel Number for each parcel or lot within the Assessment Roll, the amount of the assessment for the Fiscal Year 2024-25 for each parcel or lot of land within the Maintenance District.

City Engineer/Engineer of Work
By:

Adam M. Nelkie, License No. C78830

23 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2024-25 Certificates Page
LANDSCAPE MAINTENANCE DISTRICT 1993-2, BONDE RANCH CITY OF

PLEASANTON, ALAMEDA COUNTY, CALIFORNIA
(Pursuant to the Landscaping and Lighting Act of 1972)
The undersigned respectfully submits the enclosed Engineer's Report and does hereby certify that this Engineer's Report and the Assessment have been prepared by me as directed by the City Council.

Adam M. Nelkie, City Engineer, License No. C78830
City of Pleasanton, Alameda County, California
By:

I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment and Assessment Diagram thereto attached, was filed with me on the _________day of______________, 2024.

Jocelyn Kwong, City Clerk
City of Pleasanton, Alameda County, California
By:

I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment and Assessment Diagram thereto attached, was approved and confirmed by the City Council of the City of Pleasanton, Alameda County, California, on the ______________day of____________, 2024.

Jocelyn Kwong, City Clerk
City of Pleasanton, Alameda County, California
By:

I HEREBY CERTIFY that a certified copy of the enclosed Engineer's Report, including Assessment Roll and Assessment Diagram was filed with the County Auditor of the County of Alameda, on the ______________day of_______________, 2024.

Jocelyn Kwong, City Clerk
City of Pleasanton, Alameda County, California
By:

24 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2024-25 Assessment Diagram
The Maintenance District includes all properties within the Bonde Ranch subdivision, as displayed on the following Assessment Diagram. The lines and dimensions of each lot or parcel within the Maintenance District are those lines and dimensions as shown on the maps of the Assessor of Alameda County for Fiscal Year 2024-25, and are incorporated herein by reference, and made a part of this Diagram and this Report.

25 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2024-25 Assessment Roll FY 2024-25 - Bonde Ranch LMD No. 1993-2

COLLECTION

ASSESSMENT ASSESSOR'S ASSESSMENT CHARGE
DIAGRAM NO. PARCEL NUMBER AMOUNT 0.017 TOTAL
1 948-0019-39 $252.91 $4.31 $257.22
2 948-0019-40 252.91 $4.31 257.22
3 948-0018-04 252.91 $4.31 257.22
4 948-0018-05 252.91 $4.31 257.22
5 948-0018-06 252.91 $4.31 257.22
6 948-0018-08 252.91 $4.31 257.22
7 948-0018-09 252.91 $4.31 257.22
8 948-0018-10-1 252.91 $4.31 257.22
9C 948-0018-11-2 252.91 $4.31 257.22
11 946-2542-79 252.91 $4.31 257.22
12 946-2542-80 252.91 $4.31 257.22
13 946-2542-81 252.91 $4.31 257.22
14 946-2542-82 252.91 $4.31 257.22
15 946-2542-83 252.91 $4.31 257.22
16 946-2542-84 252.91 $4.31 257.22
17 946-2542-85-3 252.91 $4.31 257.22
18C 946-2542-86-5 252.91 $4.31 257.22
19 946-2542-87-3 252.91 $4.31 257.22
20 946-2542-88-2 252.91 $4.31 257.22
21 946-2542-89-3 252.91 $4.31 257.22
22 946-2542-90 252.91 $4.31 257.22
23 946-2550-38 252.91 $4.31 257.22
24 946-2550-39 252.91 $4.31 257.22
25 946-2550-40 252.91 $4.31 257.22
26 946-2550-41 252.91 $4.31 257.22
27 946-2550-42 252.91 $4.31 257.22
28 946-2542-69 252.91 $4.31 257.22
29 946-2542-68 252.91 $4.31 257.22
30 946-2542-67 252.91 $4.31 257.22
31 946-2542-66 252.91 $4.31 257.22
32 946-2542-65 252.91 $4.31 257.22
33 946-2542-64 252.91 $4.31 257.22
34 946-2542-63 252.91 $4.31 257.22
35 946-2542-62 252.91 $4.31 257.22
36 946-2542-61 252.91 $4.31 257.22
37 946-2542-60 252.91 $4.31 257.22
38C 946-2542-59 252.91 $4.31 257.22
39 946-2542-58 252.91 $4.31 257.22
40 946-2542-78 252.91 $4.31 257.22
41 946-2542-77 252.91 $4.31 257.22
42 946-2542-76 252.91 $4.31 257.22
43 946-2542-75 252.91 $4.31 257.22
44 946-2542-74 252.91 $4.31 257.22

26 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2024-25 45 946-2542-73 252.91 $4.31 257.22
46 946-2542-72 252.91 $4.31 257.22
47 946-2542-71 252.91 $4.31 257.22
48 946-2542-70 252.91 $4.31 257.22
49 948-0019-03 252.91 $4.31 257.22
50 948-0019-04 252.91 $4.31 257.22
51 948-0019-05 252.91 $4.31 257.22
52 948-0019-06 252.91 $4.31 257.22
53 948-0019-07 252.91 $4.31 257.22
54 948-0019-08 252.91 $4.31 257.22
55 948-0019-09 252.91 $4.31 257.22
56 948-0019-10 252.91 $4.31 257.22
57 948-0019-11 252.91 $4.31 257.22
58C 948-0005-29 252.91 $4.31 257.22
59 948-0005-30 252.91 $4.31 257.22
60 948-0005-31 252.91 $4.31 257.22
61 948-0005-32 252.91 $4.31 257.22
62 948-0005-33 252.91 $4.31 257.22
63 948-0005-34 252.91 $4.31 257.22
64 948-0005-35 252.91 $4.31 257.22
65 948-0005-36 252.91 $4.31 257.22
66 948-0005-37 252.91 $4.31 257.22
67 948-0005-38 252.91 $4.31 257.22
68 948-0005-39 252.91 $4.31 257.22
69 948-0005-40 252.91 $4.31 257.22
70 948-0005-41 252.91 $4.31 257.22
71 948-0019-14 252.91 $4.31 257.22
72 948-0019-15 252.91 $4.31 257.22
73 948-0019-16 252.91 $4.31 257.22
74 948-0019-17 252.91 $4.31 257.22
75 948-0019-18 252.91 $4.31 257.22
76 948-0019-19 252.91 $4.31 257.22
77 948-0019-20 252.91 $4.31 257.22
78 948-0019-21 252.91 $4.31 257.22
79 948-0019-22 252.91 $4.31 257.22
80 948-0019-23 252.91 $4.31 257.22
81 948-0019-25 252.91 $4.31 257.22
82 948-0019-26 252.91 $4.31 257.22
83 948-0019-27 252.91 $4.31 257.22
84 948-0019-28 252.91 $4.31 257.22
85 948-0019-29 252.91 $4.31 257.22
86 948-0019-30 252.91 $4.31 257.22
87 948-0019-32 252.91 $4.31 257.22
88 948-0019-33 252.91 $4.31 257.22
89 948-0019-34 252.91 $4.31 257.22
90 948-0019-35 252.91 $4.31 257.22
91 948-0019-36 252.91 $4.31 257.22
92 948-0019-37 252.91 $4.31 257.22
93 948-0019-38 252.91 $4.31 257.22
M1 948-0018-16 252.91 $4.31 257.22

27 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2024-25 M2 948-0018-17 252.91 $4.31 257.22
M3 948-0018-18 252.91 $4.31 257.22
M4 948-0018-19 252.91 $4.31 257.22
M5 948-0018-20 252.91 $4.31 257.22
M6 948-0018-21 252.91 $4.31 257.22
M7 948-0018-22 252.91 $4.31 257.22
M8 948-0018-23 252.91 $4.31 257.22
M9 948-0018-24 252.91 $4.31 257.22
M10 948-0018-25 252.91 $4.31 257.22
CITY 948-0014-1-39 252.91 n/a 252.91
103 TOTAL ASSESSMENTS: $26,049.73 $439.62 $26,489.35

RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON

DECLARING THE INTENTION TO ORDER IMPROVEMENTS FOR THE LIGHTING & LANDSCAPE MAINTENANCE DISTRICT NO. 1994-1 OAK TREE FARM FOR FISCAL YEAR 2024/25; DECLARING THE INTENTION TO CONTINUE THE LEVY AND COLLECTION OF ASSESSMENTS; AND SETTING THE DATE FOR THE PUBLIC

HEARING
WHEREAS, as required by Section 22622 of the California Streets and Highways Code, the City Council of the City of Pleasanton has described proposed improvements to be included for the determination of annual assessments levied for Lighting and Landscape Maintenance District No. 1994-1 Oak Tree Farm, created under the Lighting & Landscape Act of 1972, and ordered the preparation of an Engineer’s Report to determine the annual levy of assessments for such District; and
WHEREAS, as required by Section 22622 of the California Streets and Highways Code, the Engineer has filed with the City Clerk a Preliminary Engineer’s Report for the Lighting & Landscape Maintenance District No. 1994-1 Oak Tree Farm for Fiscal Year 2024/25.

NOW, THEREFORE BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES RESOLVE, DECLARE, DETERMINE AND ORDER THE FOLLOWING:

SECTION 1. The City Engineer is designated by this Council as the Engineer of Work for Lighting & Landscape Maintenance District No. 1994-1, Oak Tree Farm, during fiscal year 2024/25. The area of land to be assessed is located in the City of Pleasanton, Alameda County.

SECTION 2. The City Council intends to continue to levy and collect assessments within Lighting & Landscape Maintenance District No. 1994-1 Oak Tree Farm, during fiscal year 2024/25.

SECTION 3. The improvements to be made in this assessment district are generally described as follows:

The maintenance and repair of designated landscaped areas, open space slopes, fuel transition zones (fire breaks), entry features, open space drainage ditches, irrigation systems, trees in the open space and designated landscaped areas, and the furnishing of water and power for irrigation systems, together with all appurtenant and incidental expenses within Tract 6563 and 6748, and parcels B and C of Parcel map 6359, City of Pleasanton.

ATTACHMENT 5

SECTION 4. In accordance with this resolution directing the filing of an annual report, SCI Consulting Group, Engineer of Work, has filed with the City Clerk the report required by the Landscaping and Lighting Act of 1972. All interested persons are referred to that report for a full and detailed description of the improvements, the boundaries of the assessments upon assessable lots and parcels of land within the assessment district.

SECTION 5. On Tuesday, the 18th day of June 2024, at the hour of 7:00 pm, the City Council will conduct a public hearing on the question of the levy of the proposed annual assessment. The Council meeting will be held in accordance with Government Code Section 54954(e). To improve access to public information, residents may access meetings remotely through the City’s website.

SECTION 6. The City Clerk is authorized and directed to give the notice of hearing required by the Landscaping and Lighting Act of 1972.

SECTION 7. City Clerk shall certify to the passage of this resolution and enter it into the book of original resolutions.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Pleasanton at a regular meeting held on May 21, 2024.

I, Jocelyn Kwong, City Clerk of the City of Pleasanton, California, certify that the foregoing resolution was adopted by the City Council at a regular meeting held on the 21st day of May, 2024, by the following vote:

Ayes:

Noes:

Absent:

Abstain:
_____________________________
Jocelyn Kwong, City Clerk
APPROVED AS TO FORM:
____________________________
Daniel G. Sodergren, City Attorney

i

CITY OF PLEASANTON
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report
Fiscal Year 2024-25
May 2024
Pursuant to the Landscaping and Lighting Act of 1972, government code and article XIIID of the California Constitution

EXHIBIT A

ii
City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2024-25 (This page intentionally left blank)

i
City of Pleasanton
Mayor and City Council
Karla Brown, Mayor
Julie Testa, Vice Mayor
Valerie Arkin, Councilmember
Jack Balch, Councilmember
Jeff Nibert, Councilmember
City Manager
Gerry Beaudin
City Engineer
Adam Nelkie

ii
City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2024-25 Table of Contents
PAGE NO.

Introduction............................................................................................................................................................... 1 Overview .................................................................................................................................................................... 1 Landscape Maintenance District No. 1994-1, Oak Tree Farm .......................................................... 1 Engineer’s Report and Continuation of Assessments........................................................................ 2 Legal Requirements ........................................................................................................................... 3 Plans & Specifications .......................................................................................................................................... 4 Introduction......................................................................................................................................... 4 Oak Tree Farm Description of Improvements.................................................................................... 5 Recommended Capital Improvements............................................................................................... 6 Estimate of Cost and Budget – Fiscal Year 2024-25................................................................................... 7 Notes to Estimate ............................................................................................................................... 7 Method of Assessment Apportionment .......................................................................................................... 9 Method of Apportionment ................................................................................................................... 9 Discussion of Benefits ........................................................................................................................ 9 General vs. Special Benefits ............................................................................................................11 Calculating General Benefit and Special Benefit Paid from Other Funds .......................................12 Zones of Benefit................................................................................................................................16 Method of Assessment.....................................................................................................................16 Residential Properties ......................................................................................................................17 Other Properties ...............................................................................................................................18 The Assessment Rate does not Increase Annually .........................................................................18 Appeal of Assessments Levied to Property .....................................................................................18 Assessment Funds Must be Expended Within the Maintenance District Area................................18 Assessment ............................................................................................................................................................19 Certificates Page...................................................................................................................................................21 Assessment Diagram...........................................................................................................................................22 Assessment Roll FY 2024-25 – Landscape Maintenance District No. 1994-1 Oak Tree Farm....23

iii
City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2024-25 List of Figures
Figure 1 – Estimate of Costs and Revenues ................................................................................................. 7 Figure 2 – Summary Cost Estimate – Oak Tree Farm LMD No. 1994-1 ..............................................20 Figure 3 – Assessment Roll FY 2024-25 – Oak Tree Farm LMD No. 1994-1......................................24

1 Introduction
Overview
The City of Pleasanton (“City”) is located in Alameda County, and covers an area of

24.3 square miles, with over 24,500 assessor parcels, and approximately 80,000 residents. The City currently has five Landscape Maintenance Districts (“Districts”) that provide services to a combined total of 680 parcels:
• 1984-1 Ponderosa (Del Prado) – 344 parcels
• 1993-1 Windsor – 90 parcels
• 1993-2 Bonde Ranch – 103 parcels
• 1994-1 Oak Tree Farm – 42 parcels
• 1995-1 Moller Ranch – 101 parcels
The five District’s benefit assessments were established prior to the approval of Proposition 218 in 1996. The purpose of these Districts is to provide funding for the installation, maintenance and servicing of local landscaping and lighting improvements (“Improvements”) within each District’s service area.

Landscape Maintenance District No. 1994-1, Oak Tree Farm Assessment Background
The Oak Tree Farm Landscape Maintenance District No. 1994-1 (“District 1994-1” or “Maintenance District”) was formed in September of 1994 as a Condition of Approval for the Oak Tree Farm Phase I development to fund certain landscape improvements in the Oak Tree Farm subdivision’s 25 parcels. In July 1999 the Oak Tree Farm Phase II was annexed into the Oak Tree Farm Landscape Maintenance District No. 1994-1, adding an additional 16 parcels. The total number of parcels served by District 1994-1 since then to present time is 42 (25+16+1 City-owned sewer lift station parcel).

The Oak Tree Farm Landscape Maintenance District No. 1994-1 purpose is to fund the maintenance of the existing Oak Tree Farm subdivision open space areas, entry features, decorative lighting, firebreaks, trees, shrubbery, groundcover and irrigation systems.

District 1994-1 is funded by the benefit assessment approved in 1994 (“Assessment”), and it does not receive any direct revenues from property taxes or any other funding sources.

The fiscal year 2024-25 assessments for District 1994-1 will remain at the same assessment rate of $473.66 per parcel per year. With a total of 42 parcels in the District, fiscal year 2024-25 total assessment will be $19,885.81.

2 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2024-25 Over the years, operational costs and utility costs have increased, however the assessment revenues have remained the same. The fiscal year 2024-25 total assessment revenue will not be sufficient to fund the maintenance of all landscaped areas, including water costs, county assessment fees, city administration fees, replacement of plantings, irrigation systems, and other district improvements. The Engineer’s Report projects a shortage that will require the City to reduce landscape maintenance and water use so that maintenance costs remain below assessments.

An increase in the annual assessment will be necessary to meet the maintenance standards of the District into the future. The city can no longer subsidize staff administration time or the consultant fees for a Proposition 218-compliant vote. The consultant fees for the Proposition 218-compliant vote will cost approximately $40,000 and will need to be funded from the reserve fund. Water costs increased thirty percent starting in calendar year 2024, are scheduled to be increased another twelve percent in 2025, and are projected to continue to increase in future years to pay for necessary infrastructure and treatment costs.

The water has been turned off at the Oak Tree Farm LMD because of the state of disrepair of the irrigation system so water rate increases do not currently impact the Oak Tree Farm LMD, but the rate increases will have a significant impact if the irrigation system is restored. Continued cuts in maintenance to pay for the increasing fire management and necessary tree pruning/removal costs will lower the level of maintenance well below the maintenance standards of the district established by Ordinances 155 and 1892. This can open the district up to fines or litigation. To limit liability for the district, it will be necessary for the city to continue to pursue a proposition 218-compliant vote, incurring significant consultant costs each time, until a sustainable assessment has been agreed to by property owners.

If additional funding from a new or increased assessment is not implemented, the City will be forced to continue to reduce maintenance and postpone facility upgrades, resulting in a continuing deterioration of the grounds and facilities.

Engineer’s Report and Continuation of Assessments
Each year for which the assessments will be continued, the City Council must direct the preparation of an Engineer's Report, budgets, and proposed assessments for the upcoming fiscal year. After the Engineer's Report is completed, the City Council may preliminarily approve the Engineer's Report and proposed assessments and establish the date for a public hearing on the continuation of the assessments. This Report was prepared pursuant to the direction of the City Council.

This Engineer’s Report ("Report") was prepared to establish the budget for the continued maintenance, improvements, and services (“Improvements”) that would be funded by the proposed fiscal year 2024-25 assessments, determine the benefits received by property from the Improvements, and the method of assessment apportionment to lots and parcels within the Maintenance District. This Report and the proposed assessments have been made pursuant to the Landscaping and Lighting Act

3 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2024-25 of 1972, Part 2 of Division 15 of the California Streets and Highways Code ("Act") and Article XIIID of the California Constitution (“Article”).

If the City Council approves this Engineer's Report and the continuation of the assessments by resolution, a notice of public hearing must be published in a local paper at least 10 days prior to the date of the public hearing. The resolution preliminarily approving the Engineer's Report and establishing the date for a public hearing is used for this notice.

Following the minimum 10-day period after publishing the notice, a public hearing is held for the purpose of allowing public testimony about the proposed continuation of the assessments. This hearing is currently scheduled for June 18, 2024. At this hearing, the City Council would consider approval of a resolution confirming the continuation of the assessments for fiscal year 2024-25. If so confirmed and approved, the assessments would be submitted to the County Auditor/Controller for inclusion on the property tax rolls for Fiscal Year 2024-25.

Legal Requirements
Proposition 218
The City of Pleasanton’s five Landscape Maintenance Districts were formed prior to the passage of Proposition 218, “The Right to Vote on Taxes Act,” which was approved by the voters of California on November 6, 1996, and is now Article XIIIC and XIIID of the California Constitution. (Proposition 218 provides for benefit assessments to be levied to fund the cost of providing services, improvements, as well as maintenance and operation expenses to a public improvement which benefits the assessed property).

Although these assessments are consistent with Proposition 218, the California judiciary has generally referred to pre-Proposition 218 assessments as “grandfathered assessments” and held them to a lower standard than post Proposition 218 assessments.

The existing Assessment Districts will be re-assessed consistent with the procedures and requirements imposed by Proposition 218, which describes several important requirements, including property-owner balloting and approval for the imposition of new or increased assessments.

This Engineer’s Report is consistent with the requirements of Article XIIIC and XIIID of the California Constitution because the Improvements to be funded are clearly defined, the Improvements are directly available to and directly benefit property in the Maintenance District, and the Improvements provide a direct advantage to property in the Maintenance District that would not be received in absence of the assessments.

4 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2024-25 Plans & Specifications
Introduction
The work and Improvements to be undertaken by the City of Pleasanton within the Landscape Maintenance District No. 1994-1, Oak Tree Farm, and the costs thereof paid from the levy of the annual assessments, provide special benefit to Assessor Parcels within the Maintenance District as defined in the Method of Assessment herein.

The Landscaping and Lighting Act of 1972 (Streets & Highways Code § 22525 et seq.), (the “Act”), defines improvement, maintenance, servicing, and incidental expenses as follows:
“Improvement” means one or any combination of the following:

The installation or planting of landscaping.

The installation or construction of statuary, fountains, and other ornamental structures and facilities.
installation or construction of public lighting facilities, including, but not limited to, traffic signals.
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, including, but not limited to, grading, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities.

The installation of park or recreational improvements, including, but not limited to, all of the following:
preparation, such as grading, leveling, cutting and filling, sod, landscaping, irrigation systems, sidewalks, and drainage.

Lights, playground equipment, play courts, and public restrooms.

The maintenance or servicing, or both, of any of the foregoing, and of any improvement authorized by subdivision (i).

The acquisition of land for park, recreational, or open-space purposes.

The acquisition of any existing improvement otherwise authorized pursuant to this section.

The acquisition or construction of any community center, municipal auditorium or hall, or similar public facility for the indoor presentation of performances, shows, stage productions, fairs, conventions, exhibitions, pageants, meetings, parties, or other group events, activities, or functions, whether those events, activities, or functions are public or private. “Maintain” or “maintenance” means the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including:

Repair, removal, or replacement of all or any part of any improvement. for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury.

5 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2024-25 The removal of trimmings, rubbish, debris, and other solid waste.

The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti.
“Service” or “servicing” means the furnishing of:

Electric current or energy, gas, or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements.

Water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other improvements.
“Incidental expenses” include all of the following:

The costs of preparation of the report, including plans, specifications, estimates, diagram, and assessment.

The costs of printing, advertising, and the giving of published, posted, and mailed notices.

Compensation payable to the county for collection of assessments.

Compensation of any engineer or attorney employed to render services in proceedings pursuant to this part.

Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements.

Any expenses incidental to the issuance of bonds or notes pursuant to Section 22662.5.

Costs associated with any elections held for the approval of a new or increased assessment.

The City of Pleasanton’s work and Improvements (“Improvements”) for the property within the Maintenance District that is owned or maintained by the City of Pleasanton, are consistent with these definitions. Plans and specifications for these Improvements are filed with the City of Pleasanton Landscape Architect and are incorporated herein by reference.

Oak Tree Farm Description of Improvements
The improvements which are the subject of this Report are briefly described as follows:

The maintenance and repair of designated landscaped areas, open space slopes, fuel transition zones (fire breaks), entry features, decorative lighting, open space drainage ditches, irrigation systems, trees in the open space and designated landscaped areas, and the furnishing of water and power for irrigation systems, together with all appurtenant and incidental expenses within Tract 6563, and 6748, and parcels B and C of Parcel Map 6359, City of Pleasanton. The landscape easement on the southern property line of Lot 4 was removed from the Oak Tree Farm Landscape Maintenance District in 2021, as indicated in the updated map, and is now maintained by the Lot 4 property owner through a landscape maintenance agreement with the property owner.

Landscape plans and specifications for the improvements to this Landscape Maintenance District are those prepared by Merrill & Associates, Landscape

6 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2024-25 Architects/Planners, dated June 1993 (Lots 1 thru 24) and February 1996 (Lots 1 thru 15). These plans and specifications have been filed separately with the Clerk of the Legislative body and are incorporated in this report by reference.

Recommended Capital Improvements
Some of the Improvements such as complete irrigation and plant replacement and decorative fencing repairs in the Landscape Maintenance District No. 1994-1, Oak Tree Farm, are overdue and the reserve fund balance is insufficient to do these tasks.

The irrigation system has multiple lateral and mainline breaks and broken valves and has been turned off. The majority of the decorative planting has died and been removed. The remaining plants and trees are not being watered at the present time.

The City drafted a schedule of recommended capital improvement projects that need to be addressed, such as the replacement of the irrigation system and entry wall and fencing improvements, and their respective estimated cost, as well as a planned replacement/renovation schedule. To fund the necessary capital improvements and maintain the District to a similar level to when the District was created staff estimates that the annual assessments would need to be increased from $473.66 to approximately $850-950.The City intends to begin Proposition 218 outreach efforts starting in 2025-26 to develop the level of maintenance and recommended capital improvements for the following fiscal year to create a comprehensive maintenance and improvement plan and determine associated costs.

7 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2024-25 Estimate of Cost and Budget – Fiscal Year 2024-25
The following budget shows the estimate of cost of the Improvements to be funded by the Maintenance District in Fiscal Year 2024-25.

Figure 1 – Estimate of Costs and Revenues
City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm 2024-25 Estimate of Costs
Budget
Installation, Maintenance, and Servicing Costs
Landscaping (maintenance)
Basic landscape maintenance $7,200.00
Extra worki $4,000.00
Water – All planting $1,000.00
Scenic easement weed abatement $7,100.00
Total for Installation, Maintenance and Servicing $19,300.00 Incidental and Administration Costsii
City of Pleasanton Assessment Administration $1,800.00
County Fees for Collection of Assessment $324.31
Total Incidental and Administrative Costs $2,124.31
Amount to/(from) Reserve Fundiii
Reserve/Long-term Replacement Fund for scheduled long-term replacement of various district improvements ($1,538.50) Total Costs $19,885.81
Budget Allocation to Property
Single Family
Number of Equivalent Assessment Total
Parcels/Units Units (SFE)iv Rate Assessmentv
42 42 $473.66 $19,885.81
Explanation of Annual Assessment Rate per Unit:
41 units @ $473.66 assessment per year (= $465.75 + $7.91 County Collection Fee) 1 unit @ $465.75 assessment per year (City parcel, savings of $7.91 County Collection Fee) Notes to Estimate
i. Contingency to address maintenance that is not routine in nature, such as repair or replacement of broken irrigation valves and lines or pruning/removing failed trees or tree limbs. ii. Incidental and administration cost estimates include City staff hours dedicated to the administration of the assessment (including staff time to bid work, monitor contracts and contractors, respond to residents’ inquiries, etc.), county charges for inclusion of assessments on property tax bills, and other incidental costs.

8 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2024-25 iii. At the time of this report a fund balance of approximately $72,000 remains for Landscape Maintenance District 1994-1. The projected 2024-25 expenses, if current maintenance levels and water use were maintained, are higher than the projected annual revenues. Reserve/replacement funds are held in an interest-bearing account until needed for repairs to the irrigation system, landscaping or other District features.
iv. The rate shown here is for a single-family home or its equivalent. For the definition of the term Single-Family Equivalent (SFE) and rates for other types of property, see the section titled, “Method of Assessment” and the sections following it in this report.
v. The Act requires that proceeds from the assessments must be deposited into a special fund that has been set up for the revenues and expenditures of the Maintenance District. Moreover, funds raised by the assessment shall be used only for the purposes stated within this Report. Any balance remaining at the end of the Fiscal Year, June 30, must be carried over to the next Fiscal Year. The District may also establish a reserve fund for contingencies and special projects as well as a capital improvement fund for accumulating funds for larger capital improvement projects or capital renovation needs. Any remaining balance would either be placed in the reserve fund, the capital improvement fund, or would be used to reduce future years' assessments. The Landscape Maintenance District 1994-1 reserve/replacement funds are held in an interest-bearing account until needed for repairs to the irrigation system, landscaping or other District features.

9 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2024-25 Method of Assessment Apportionment
Method of Apportionment
This section of the Engineer's Report includes an explanation of the benefits to be derived from the installation, maintenance and servicing of Improvements and landscaping for the Maintenance District and the methodology used to apportion the total assessment to the properties within the Maintenance District.

The method used for apportioning the assessment is based upon the relative special benefits to be derived by the properties in the Maintenance District over and above general benefits conferred on real property or to the public at large. The assessment is apportioned to lots and parcels in proportion to the relative cost of the special benefits from the Improvements. Special benefit is calculated for each parcel in the Maintenance District using the following process:
i. Identification of all benefit factors derived from the Improvements. ii. Calculation of the proportion of these benefits that are general. iii. Determination of the relative special benefit per property type. iv. Calculation of the specific assessment for each individual parcel based upon special vs. general benefit, location, property type, property characteristics, improvements on property and other supporting attributes.

The parcels within the Landscape Maintenance District No. 1994-1, Oak Tree Farm, consist of all Assessor Parcels within the boundaries as defined by the Assessment Diagram included within this Report and the Assessor Parcel Numbers listed within the included Assessment Roll. The method used for apportioning the assessments is based upon the proportional special benefits to be derived by the properties in the Maintenance District, over and above general benefits conferred on real property or to the public at large. The apportionment of special benefit is a two-step process: the first step is to identify the types of special benefit arising from the Improvements, and the second step is to allocate the assessments to property based on the estimated relative special benefit for each type of property.

Discussion of Benefits
The assessments can only be levied based on the special benefit to property. This benefit is received by property over and above any general benefits. With reference to the requirements for assessments, Section 22573 of the Landscaping and Lighting Act of 1972 states:
"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."

10 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2024-25 Proposition 218, as codified in Article XIIID of the California Constitution, has confirmed that assessments must be based on the special benefit to property:
"No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel." In this case, the 2008 Silicon Valley Taxpayers Association, Inc. vs Santa Clara County Open Space Authority (“SVTA”) decision provides enhanced clarity to the definition of special benefits to properties from similar public improvements in three distinct areas:
i. Proximity
ii. Expanded or improved access
iii. Views
The SVTA decision also clarifies that a special benefit is a service or improvement that provides a direct advantage to a parcel, and that indirect or derivative advantages resulting from the overall public benefits from a service or improvement are general benefits.

Proximity, improved access and views, in addition to the other special benefits listed herein further strengthen the basis of these assessments.

The following benefit categories summarize the types of special benefit to residential and other lots and parcels resulting from installation, maintenance and servicing of landscaping, irrigation, sidewalks, signs, lights, and other improvements to be provided with the assessment proceeds. These categories of special benefits are derived from the statutes passed by the California Legislature and studies which describe the types of special benefit received by property from maintenance and improvements such as those provided by the City of Pleasanton, Landscape Maintenance District No. 1994-1, Oak Tree Farm. These types of special benefit are summarized as follows:
i. Improved access to landscaped areas and other permanent public improvements ii. Proximity to improved landscaped areas and other permanent public improvement.
iii. Improved views.
iv. Extension of a property’s outdoor areas and landscaped areas for properties within close proximity to the Improvements.
v. Creation of individual lots for residential use that, in absence of the assessments, would not have been.

The above benefit factors, when applied to property in the Maintenance District, specifically increase the utility and usefulness of the property within the Maintenance District. For example, the assessments will provide funding to improve and maintain the public landscaping next to the parcels within the Maintenance District. Such improved and well-maintained landscaping enhances the overall quality, desirability, utility and safety of the properties.

11 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2024-25 General vs. Special Benefits
Article XIIID, Section 4(a) of the California Constitution requires any local agency proposing to increase or impose a benefit assessment to “separate the general benefits from the special benefits conferred on a parcel.” The rationale for separating special and general benefits is to ensure that property owners subject to the benefit assessment are not paying for general benefits. Property may be assessed to fund improvements to the extent of the special benefits conferred by the Improvements; but general benefits are not assessable. Accordingly, a separate estimate of the special and general benefit is given in this section.

Article XIIID never defines the term “general benefit.” The definition of special benefit in Section 2(i) includes the statement that general enhancement of property value does not constitute special benefit. General benefit may be described as “an indirect, derivative advantage” resulting from the improvements. One infers from Article XIIID that all benefit is either general or special.

In other words:

Total
Benefit = General Benefit
+ Special
Benefit
There is no widely accepted or statutory formula for quantifying the amount of any general benefit that is identified.

In this Report, the general benefit is first identified, generously estimated, and then budgeted so that it is funded, as required by Proposition 218, by sources other than the Assessment.

A formula to estimate the general benefit is listed below:

General
Benefit =
Benefit to Real
Property Outside the
Assessment District
+
Benefit to Real Property Inside
the Assessment District that is
Indirect and Derivative
+
Benefit to
the Public
at Large
Special benefit, on the other hand, is defined in the California constitution as “a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large”. A special benefit is conferred to a property if the property “receives a direct advantage from the improvement (e.g., proximity to setback landscaping).” In the Maintenance District, as noted, properties have close and unique proximity, views of and access to the Improvements, and uniquely improved utility and desirability from the Improvements, and other properties and the public at large do not receive such benefits because they do not have proximity, access to or views of the Improvements. Therefore, the overwhelming proportion of the benefits conferred to property is special, and only minimal general benefit is conferred on property outside the Maintenance District or to the public at large.

12 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2024-25 This Engineer’s Report includes a specific, quantified calculation of general benefits, as described below, that is based in part on the use by people outside of the Maintenance District. Moreover, the proportionality of the Assessments to the special benefits conferred on each parcel, based in large part on proximity, is established as well.

Calculating General Benefit and Special Benefit Paid from Other Funds In this section, the total general benefit, which must be paid from other non-assessment funds, is conservatively estimated, quantified, described, and separated, and then budgeted to absolutely ensure that it is funded by sources other than this assessment.

Benefit to Property Outside the Maintenance District = 9.6% In summary, real property located within the boundaries of the Maintenance District distinctly and directly benefit from closer proximity, access and views of the Improvements funded by the Assessments, the creation of developable parcels, and from the extension of usable land area provided by the assessments. The Improvements are specifically designed to serve local properties in the Maintenance District, not other properties nor the public at large.

The Maintenance District has been narrowly drawn to include those parcels that receive a direct advantage from the Improvements. The public at large and other properties outside the Maintenance District receive only limited benefits from the Improvements because they do not have proximity, good access or views of the Improvements. These are special benefits to property in the Maintenance District in much the same way that sewer and water facilities, sidewalks and paved streets enhance the utility and desirability of specific proximate properties and make them more functional to use, safer and easier to access.

Properties within the proposed Maintenance District receive almost all the special benefits from the Improvements because properties in the Maintenance District enjoy unique and close proximity and access to the Improvements that are enjoyed less by other properties or the public at large. The landscaping Improvements are specifically designed to benefit the properties in the Maintenance District.

Furthermore, there are multiple, proximate open space, landscaped areas, and other improvements outside of the Maintenance District, funded by other sources, that provide most of the open space and landscaping benefits to nearby parcels that are outside of the Maintenance District.

In other words, the landscaping Improvements maintained by the proposed Assessments specially benefit the properties within the Maintenance District, but other nearby improvements primarily benefit other proximate properties.

Nonetheless, there are certain properties that are outside the boundaries of the Maintenance District that may benefit from the landscape improvements. A total of no more than 8 proximate parcels have been identified that receive some

13 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2024-25 special benefit from the improvements including improved views, proximity and/or access, but do not receive extension of outdoor areas nor the special benefit of parcel creation. Since these adjacent properties only receive a 3 of the 5 major special benefits, a 60% factor is applied.

Total General Benefit to Properties Outside of the District = 9.6% Assumptions
8 parcels outside and adjacent to the District
42 parcels in the Maintenance District
Calculation
General Benefit to Property outside the Improvement District = (8 / (8 + 42)) * 60% = 9.6%
Benefit to Property Inside the District that is Indirect and Derivative = 0.0% The “indirect and derivative” benefit to property within the Maintenance District is particularly difficult to calculate. A solid argument can be presented that all benefit within the Maintenance District is special because the Improvements are clearly “over and above” and “particular and distinct” when compared with the unique proximity, access and views of the Improvements enjoyed by benefiting properties in the Maintenance District.

Nevertheless, the SVTA decision indicates that there may be general benefit “conferred on real property located in the district.” A measure of the general benefits to property within the Maintenance District is the percentage of land area within the Maintenance District that is publicly owned, open to the public, and used for regional purposes such as major roads, rail lines, hospitals, and other regional facilities because such properties, while physically within the Maintenance District, are used for regional purposes and could provide indirect benefits to the public at large. In this case, essentially 0% of the land area is used for such regional purposes.

Benefit to the Public at Large = 10%
The general benefit to the public at large can be estimated by the proportionate amount of time that the Maintenance District’s public landscaped areas and facilities are used and enjoyed by individuals who are not residents, employees, customers, or property owners in the Assessment Area. Based on surveys and research in which visitors to similar landscape, open space and parks, at various times of the day, evening, and week, were asked to look at a District map and to identify whether they lived or worked within the City, less than 5% of the use of similar landscape, open space, parks or recreation areas is by the public at large.

When people outside the Maintenance District use landscape, open space, parks, or recreation areas, they diminish the availability of such facilities for people within the Maintenance District. Therefore, another 5% of general benefits

14 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2024-25 are allocated for people within the Maintenance District. Combining these two elements of general benefit, we find that 10% of the benefits from the Improvements are general benefits to the public at large.

Total General Benefits to be Financially Contributed from Other Funds =

19.6%
Using a sum of these three measures of general benefit, we find that approximately 10.0% of the benefits conferred by the Improvements may be general in nature and should be funded by sources other than the Assessments.

General Benefit Calculation

9.6% (Outside the Maintenance District)
+ 0.0% (Inside the Maintenance District – indirect and derivative) + 10.0% (Public at Large)
= 19.6% (Total General Benefit)
Source of Financial Contributions from Other Funds to Satisfy the 19.6% Requirement
The general benefit contribution is paid in part from other “in-kind”, non-monetary contributions from the City in the form of infrastructure critical to the continued maintenance of the Maintenance District Improvements, as described below.

Also, general benefit contributions come from the “annuity” value of the improvements that were constructed by the developer.

The City of Pleasanton owns, maintains, rehabilitates, and replaces the curb and gutter along the border of the Maintenance District. This curb and gutter serve to support, contain, retain, manage irrigation flow and growth, and provide a boundary for the Improvements. The contribution from the City of Pleasanton toward general benefit from the maintenance, rehabilitation, and replacement of the curb and gutter is conservatively estimated to be 10%, based upon the relative cost to construct and maintain this critical local infrastructure. In other words, if the Maintenance District were required to construct and maintain the local curb and gutter, the budget would increase by at least 10%.

The City of Pleasanton owns and maintains a storm drainage system along the border of the Maintenance District. This system serves to prevent flooding and associated damage to the Improvements and manage urban runoff including local pollutants loading from the Improvements. The contribution from the City of Pleasanton toward general benefit from the maintenance, rehabilitation, and replacement of the local storm drainage system is conservatively estimated to be 10%, based upon the relative cost to construct and maintain this critical local infrastructure. In other words, if the Maintenance District were required to

15 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2024-25 construct and maintain the local storm drainage system, the budget would increase by at least 10%.

The City of Pleasanton owns and maintains local public streets throughout the Maintenance District. These public streets provide access to the Improvements for its enjoyment as well as efficient maintenance. The contribution from the City of Pleasanton toward general benefit from the maintenance, rehabilitation, and replacement of the local public streets is conservatively estimated to be 10%, based upon the relative cost to construct and maintain this critical local infrastructure. In other words, if the Maintenance District were required to construct and maintain the local public streets, the budget would increase by at least 10%.

The value of the initial Improvements constructed by the Developer can be quantified and monetized as an annuity to be amortized. Since the initial Improvements were performed and paid for by non-assessment funds, this “annuity” can be used to offset general benefit costs and is conservatively estimated to contribute 20%. In other words, if the Maintenance District were required to construct all the Improvements, the annual budget would increase by at least 20%.

In other words, there is a 19.6% contribution needed to offset the general benefits conferred by the Improvements, and there is a 50% contribution from City of Pleasanton supporting local infrastructure, along with the amortized value of initial construction. This 50% contribution more than satisfies the general benefit requirements.

The estimates used above for the City of Pleasanton’s “in-kind”, non-monetary contributions for the maintenance, rehabilitation and replacement of the curbs and gutters, storm drainage systems, local streets (the “supportive infrastructure”), and the value of the initial Improvements constructed by the Developer, are based on industry standards; typical and standard quantity ratios between this supportive infrastructure (including the City’s relative associated maintenance costs) and similar Improvements; and on the assessment Engineer’s professional experience on planning and working in such projects.

Source of Contributions from Other Funds to Satisfy 19.6% Requirement City non-monetary contributions:

10.0% (Curb and gutter)
+ 10.0% (Storm drainage system)
+ 10.0% (Public roads)
+ 20.0% (Amortized value of initial construction)
= 50.0% (Total General Benefit paid from Other Funds)

16 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2024-25 Zones of Benefit
The boundaries of the Assessment Area are carefully drawn to only include the properties that are proximate to the Improvements and that would materially benefit from the Improvements.

In SVTA, the court noted that even a local agency-wide assessment district is appropriate under the right conditions:
“Thus, if an assessment district is narrowly drawn, the fact that a benefit is conferred throughout the district does not make it general rather than special. In that circumstance, the characterization of a benefit may depend on whether the parcel receives a direct advantage from the improvement (e.g., proximity to a park) or receives an indirect, derivative advantage resulting from the overall public benefits of the improvement (e.g., general enhancement of the district's property values).”
The court therefore acknowledged the appropriateness of a District-wide assessment so long as each parcel receives a direct advantage from the assessment-funded improvement or service. As demonstrated in this Report, each parcel in the Maintenance District receives a direct advantage and special benefit from the Improvements.

In the Maintenance District, the advantage that each parcel receives from the Improvements is direct, and the boundaries are narrowly drawn to include only parcels that benefit from the Assessment. Therefore, the even spread of assessment throughout the narrowly drawn district is indeed consistent with the SVTA decision. The benefits from the Improvements within the Maintenance District do not vary further based on proximity of the parcels to the Improvements because the increased benefits of greater proximity to the Improvements are generally offset by a parallel increase in negative factors such as higher levels of traffic, noise, etc. that comes with increased proximity.

Consequently, since all parcels in the Maintenance District have good access and proximity to the Improvements and the benefits to relatively closer proximity are offset by other factors, additional proximity is not considered to be a factor in determining benefit within the Maintenance District. Therefore, zones of benefit are not justified or needed within the Maintenance District.

Method of Assessment
As previously discussed, the Assessments provide comprehensive Improvements that clearly confers direct and special benefits to properties in the Maintenance District.

The allocation of special benefits to property is primarily based on the type of property and the size of property. These benefits can also partially be measured by the occupants on property in the Maintenance District because such parcel population

17 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2024-25 density is a measure of the relative benefit a parcel receives from the Improvements. It should be noted that many other types of “traditional” assessments also use parcel population densities to apportion the assessments. For example, the assessments for sewer systems, roads and water systems are typically allocated based on the population density of the parcels assessed. Therefore, the apportionment of benefit is reasonably based on the type of parcel, the size of parcels and the population density of parcels.

A critical step in apportioning assessments is to determine the relative special benefit for each property. This process involves determining the relative benefit received by each property in relation to a single-family home, or, in other words, on the basis of Single-Family Equivalent (SFE) units. This SFE methodology is commonly used to distribute assessments in proportion to estimated special benefit and is generally recognized as providing the basis for a fair and appropriate distribution of assessments.

For the purposes of this Engineer’s Report, all properties are designated an SFE value, which is each property’s relative benefit in relation to a single-family home on one parcel. In this case, the "benchmark" property is the single family detached dwelling which is one Single Family Equivalent unit or one SFE.

Finally, the special benefits to be derived from the Assessments will be conferred on property and are not based on a specific property owner’s use of the Improvements, a specific property owner’s occupancy of property, or the property owner’s demographic status such as age or number of dependents. The benefits derived to property are related to the average number of people who could potentially live on, work at, or otherwise could occupy a property, not how the property is currently used by the present owner. Therefore, the number of people who could, or potentially, live on, work at, or otherwise occupy a property is one indicator of the relative level of benefit received by a property.

In conclusion, the Assessment Engineer determined that the appropriate method of assessment apportionment should be based on the type of property, the relative size of the property, property location, its relative population, and its proximity to the landscaping and open space facilities. This method is further described below.

Residential Properties
The Oak Tree Farm development is a residential single-family development project consisting of a total of 42 parcels, 41 single family home parcels, and 1 City owned parcel used as a sewer lift station. As such, each residential property receives similar benefit from the proposed Improvements.

Therefore, the Engineer has determined that the appropriate method of apportionment of the benefits derived by all parcels is on a dwelling unit or single-family residence basis. All improved properties, or properties proposed for development, are assigned one Single Family Equivalent unit or 1 SFE factor equal to the number of dwelling units developed or planned for the property.

18 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2024-25 Other Properties
Article XIIID stipulates that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the Assessment.

All properties that are specially benefited are assessed. Other publicly owned property that is used for purposes similar to private residential, commercial, industrial, or institutional uses is benefited and assessed at the same rate as such privately owned property.

Miscellaneous, small, and other parcels such as roads, right-of-way parcels, and common areas typically do not generate significant numbers of employees, residents, customers, or guests, who would have access to or use the Improvements. These miscellaneous parcels therefore receive no benefit from the Improvements and are assessed an SFE benefit factor of 0 SFEs.

The Assessment Rate does not Increase Annually
It should also be noted that the Maintenance District assessment rates cannot be increased annually, and the total revenues remain the same year after year, assessing $473.66 per SFE or parcel, which is the maximum authorized assessment. To increase the annual assessment rate or to add an annual Consumer Price Index escalator to the assessment rate, approval of the property owners is required via a Proposition 218 assessment ballot proceeding.

Appeal of Assessments Levied to Property
Any property owner who feels that the assessment levied on their property is in error as a result of incorrect information being used to apply the foregoing method of assessment may file a written appeal with the City of Pleasanton City Engineer or his or her designee. Any such appeal is limited to correction of an assessment during the then current Fiscal Year and applicable law. Upon the filing of any such appeal, the City of Pleasanton City Engineer or his or her designee will promptly review the appeal and any information provided by the property owner. If the City of Pleasanton City Engineer or his or her designee finds that the assessment should be modified, the appropriate changes shall be made to the Assessment Roll. If any such changes are approved after the Assessment Roll has been filed with the County for collection, the City Engineer or his or her designee is authorized to refund to the property owner the amount of any approved reduction.

Assessment Funds Must be Expended Within the Maintenance District Area The net available Assessment funds, after incidental, administrative, financing, and other costs, shall be expended exclusively for Improvements within the boundaries of the Maintenance District and appropriate incidental and administrative costs as defined in the Plans and Specifications section.

19 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2024-25 Assessment
WHEREAS, the City of Pleasanton City Council directed the undersigned Engineer of Work to prepare and file a report presenting an estimate of costs, a diagram for the Maintenance District, and an assessment of the estimated costs of the Improvements upon all assessable parcels within the Maintenance District; NOW, THEREFORE, the undersigned, by virtue of the power vested in me under the Act, Article XIIID of the California Constitution, and the order of the City Council of the City of Pleasanton, hereby makes the following assessment to cover the portion of the estimated cost of the Improvements, and the costs and expenses incidental thereto to be paid by the Maintenance District.

The amount to be paid for said Improvements and the expense incidental thereto, to be paid by the Maintenance District for the Fiscal Year 2024-25 is generally as follows:

Figure 2 – Summary Cost Estimate – Oak Tree Farm LMD No. 1994-1 Budget Item Budgeted
Cost
Installation, Maintenance, and Servicing Costs $19,300.00 Incidental and Administration Costs $2,124.31
Amount to/(from) Reserve Fund ($1,538.50)
Total Budget $19,885.81
As required by the Act, an Assessment Diagram showing the exterior boundaries of the Maintenance District is hereto attached and incorporated herein by reference. The distinctive number of each parcel or lot of land in the Maintenance District is its Assessor Parcel Number appearing on the Assessment Roll.

I do hereby assess and apportion the net amount of the cost and expenses of the Improvements, including the costs and expenses incident thereto, upon the parcels and lots of land within the Maintenance District, in accordance with the special benefits to be received by each parcel or lot, from the Improvements, and more particularly set forth in the Estimate of Cost and Method of Assessment in the Report.

20 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2024-25 The Assessment is made upon the parcels or lots of land within the Maintenance District in proportion to the special benefits to be received by the parcels or lots of land, from the Improvements.

The Maintenance District’s assessment rate for fiscal year 2024-25 remains unchanged at the same assessment rate used last year of $473.66 per single-family equivalent (SFE) benefit unit.

Each parcel or lot of land is described in the Assessment Roll by reference to its parcel number as will be shown on the Assessor's Maps of Alameda County for the Fiscal Year 2024-25. For a more particular description of the property, reference is hereby made to the deeds and maps on file and of record in the office of the County Recorder of the County.

I hereby will place opposite the Assessor Parcel Number for each parcel or lot within the Assessment Roll, the amount of the assessment for the Fiscal Year 2024-25 for each parcel or lot of land within the Maintenance District.

City Engineer/Engineer of Work
By:

Adam M. Nelkie, License No. C78830