Agenda packet, regular meeting — Pleasanton City Council, June 17, 2025 (part 3 of 6)

11 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2025-26 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."

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12 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2025-26 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.

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13 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2025-26 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.

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14 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2025-26

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,

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15 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2025-26 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.

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16 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2025-26 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

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17 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2025-26 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.

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18 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2025-26 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% (Amoritized 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.

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19 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2025-26 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.

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20 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2025-26

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 $265.11 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

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21 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2025-26 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.

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22 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2025-26 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 2025-26 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 $38,205.90
Amount to/(from) Reserve Fund ($26,215.10)
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.

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23 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2025-26 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 2025-26 remains unchanged at the same assessment rate used last year of $265.11 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 2025-26. 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 2025-26 for each parcel or lot of land within the Maintenance District.

City Engineer/Engineer of Work

By:

Adam M. Nelkie, License No. C78830

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24 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2025-26 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______________, 2025.

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____________, 2025.

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_______________, 2025.

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

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25 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2025-26 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 2025-26, and are incorporated herein by reference, and made a part of this Diagram and this Report.

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26 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2025-26 Assessment Roll FY 2025-26 - 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

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27 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2025-26 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

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28 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2025-26

Figure 4 – FY 2024-25 Actual Costs and Revenues
2024-25 Project Expenditures

135 Windsor
Item Budget Expenditures*
Anticipated
Remaining
Expenditures
Anticipated
Year-end
Balance
Installation and Maintenance
Basic Maintenance** $0.00 $0.00 $0.00 $0.00
Extra Work*** $12,000.00 $17,797.10 $0.00 -$5,797.10
Water** $0.00 $160.00 $0.00 -$160.00
Power $275.00 $210.76 $42.16 $22.08
Subtotal $12,275.00 $18,167.86 $42.16 -$5,935.02

Incidental and Administrative
City of Pleasanton Assessment Administration $1,800.00 $1,831.04 $0.00 -$31.04 County Fees for Collection of Assessment $405.90 $405.90 $0.00 $0.00 Proposition 218-compliance process $0.00 $0.00 $2,000.00 -$2,000.00 Subtotal $2,205.90 $2,236.94 $2,000.00 -$2,031.04

Annual Assessment $24,265.80

Reserve
Starting Fund Balance (7/1/2024) -$16,000.00
Budgeted Year-End Fund Balance -$6,215.10
Anticipated Year-End Fund Balance -$14,181.16

* Expenditures from July 1, 2024 to April 30, 2025

** HOA took over basic maintenance and water costs, but city still responsible for testing

*** Extra work included tree pruning, tree removal, and irrigation repairs and replacement.

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29 City of Pleasanton
Landscape Maintenance District No. 1993-1, Windsor Engineer’s Report, Fiscal Year 2025-26

Page 300 of 864 ends

RESOLUTION NO. 2025-

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 2025/26; DECLARING THE INTENTION TO CONTINUE THE LEVY AND COLLECTION OF ASSESSMENTS; AND SETTING THE DATE FOR THE PUBLIC

HEARING
W
HEREAS, 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
W
HEREAS, 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 2025/26.

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

S
ECTION 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 2025/26. The area of land to be assessed is located in the City of Pleasanton, Alameda County.

S
ECTION 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 2025/26.

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

The m
aintenance 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.

S
ECTION 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

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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 15th day of July 2025, 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 C lerk is authorized and directed to give the notice of hearing required by the Landscaping and Lighting Act of 1972.

SECTION 7. City C lerk 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 June 17, 2025.

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 17th day of June, 2025, by the following vote:

A
yes:

N
oes:

Absent:

Abstain:
_____________________________

Jocelyn Kwong, City Clerk
APPR
OVED AS TO FORM:
____________________________

Daniel G. Sodergren, City Attorney

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CITY OF PLEASANTON

Landscape Maintenance District No. 1993-2, Bonde Ranch

Engineer’s Report

Fiscal Year 2025-26

June 2025

Pursuant to the Landscaping and Lighting Act of 1972, government code and article XIIID of the California Constitution

EXHIBIT A

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City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2025-26

(This page intentionally left blank)

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City of Pleasanton

Mayor and City Council
Jack Balch, Mayor
Jeff Nibert, Vice Mayor
Craig Eicher, Councilmember
Matt Gaidos, Councilmember
Julie Testa, Councilmember

City Manager
Gerry Beaudin

City Engineer
Adam Nelkie

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City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2025-26 Table of Contents

PAGE NO.

Introduction .......................................................................................................................................... 1

Executive Summary ............................................................................................................................. 1

Overview ............................................................................................................................................... 1 Landscape Maintenance District No. 1993-2, Bonde Ranch ............................................................. 2 Engineer’s Report and Proposed Assessments ................................................................................. 3 Legal Requirements ............................................................................................................................ 4

Plans & Specifications ........................................................................................................................ 6 Introduction ......................................................................................................................................... 6 Bonde Ranch Description of Improvements ....................................................................................... 7 Recommended Capital Improvements ............................................................................................... 8

Estimate of Cost and Budget – Fiscal Year 2025-26 ........................................................................ 9 Notes to Estimate ................................................................................................................................ 9

Method of Assessment Apportionment .......................................................................................... 11 Method of Apportionment ................................................................................................................. 11 Discussion of Benefits....................................................................................................................... 11 General vs. Special Benefits ............................................................................................................. 13 Calculating General Benefit and Special Benefit Paid from Other Funds ........................................ 14 Zones of Benefit ................................................................................................................................ 18 Method of Assessment ..................................................................................................................... 19 Residential Properties ....................................................................................................................... 20 Other Properties ................................................................................................................................ 20 The Assessment Rate does not Increase Annually .......................................................................... 20 Appeal of Assessments Levied to Property ...................................................................................... 20 Assessment Funds Must be Expended Within the Maintenance District Area ................................ 21

Assessment ........................................................................................................................................ 22

Certificates Page ................................................................................................................................ 24

Assessment Diagram ........................................................................................................................ 25

Assessment Roll FY 2025-26 - Bonde Ranch LMD No. 1993-2 ..................................................... 26

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iii

City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2025-26 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 2025-26 – Bonde Ranch LMD No. 1993-2 ................................... 24

Figure 4 – FY 2024-25 Actual Costs and Revenues – Bonde Ranch LMD No. 1993-2 ............... 27

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1 Introduction

Executive Summary
The Bonde Ranch Landscape Maintenance District, 1993-2, was created in 1993 as a means to fund the maintenance for the Bonde Ranch development, Tract 6483, a 103- parcel development. The district was formed prior to the passage of Proposition 218, the “Right to Vote on Taxes Act” which requires property owner approval to impose or increase assessments.

At the time of formation, there was no inflation escalator built into the assessment and the district assessment has remained at $252.91 since FY 2000-01 when it was further reduced from the approved amount of $389.56. The reduced assessment has led to a severe decline in the level of maintenance, a lack of sufficient funding for capital improvement projects, and forced the city to shut down the inoperable irrigation system.

The lack of irrigation has led to an even further decline of the landscape to the point that the district is out of compliance with the level of maintenance required as part of the development approval, which exposes the district and the property owners to increased liability.

In 2022, staff held outreach meetings with district property owners regarding a Proposition 218-compliant assessment increase to achieve a sustainable maintenance level but met resistance to the increase and put the efforts on hold. Last year, staff spent time conducting further research regarding the formation of the district and determined that the 1997 post-Proposition 218 assessment amount for the district was $389.56. Staff is recommending that the assessment be restored to the 1997 level. The restoration of the approved assessment amount is only a first step though, as maintenance costs are estimated to be closer to $800 annually to properly maintain the district and complete the necessary improvements, such as tree pruning and irrigation restoration. A Proposition 218-compliant analysis and vote will be required to address the maintenance needs of the district. The budget for this fiscal year will require drawing down the reserve by about $22,000 due to the consultant costs, estimated at approximately $36,000, for the Proposition 218 vote, which is a one-time cost. However, should the vote not pass, the vote will need to be repeated until it does pass; creating a significant financial burden to property owners each time.

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

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2 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2025-26 • 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. Based on research of the historical documents and in consultation with their consultant, SCI Consulting Group, and an attorney that specializes in assessment law, JarvisFay, the fiscal year 2025-26 assessments for District 1993-2 will be restored to the amount that was approved by Resolution 97-83,which was the first assessment following the implementation of Proposition 218, and was for $389.56 per parcel per year. Under Proposition 218, a property owner vote is only required when these assessments are increased, and an assessment is not increased if it is set at an amount that is no more than the maximum amount initially authorized when the assessment district was created. (Cal. Const. Art. XIII D, § 5(b); Gov. Code § 53750(h)(2)(B).) With a total of 103 parcels in the district (including one public parcel), the fiscal year 2025-26 total assessment will be $40,799.92.

The assessment revenues were lowered in 1999 and 2000 and have remained the same since 2000, however, over the years, operational costs and utility costs have increased and restoring the assessments to the original post-Proposition 218 amounts, although a good first step, will still not be sufficient to fund the maintenance of all common areas, including water costs, county assessment fees, city administration fees,

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3 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2025-26 replacement of plantings, irrigation systems, fencing, and other district improvements.

The equivalent of the $252.91 assessed last year in today’s dollars, based on the Consumer Price Index for California, is $513.25. The Engineer’s Report projects a shortage that will require the City to continue to reduce maintenance levels.

Water costs increased thirty percent in calendar year 2024, 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 Bonde Ranch LMD because of the state of disrepair of the irrigation system so water rate increases currently have a limited impact to the Bonde Ranch LMD (there is still a base monthly fee for the water meter). However, the rate increases will have a significant impact if the irrigation system is restored. Turning off the water has led to a lack of water on the plants and trees, which has caused a number of plants to die and puts the health of the landscape more at risk and reduces the ability of the plants to weather drought conditions.

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. $36,000 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.

Even with the restoration of the approved assessment amount, the city will be forced to reduce maintenance and postpone facilities upgrades and tree pruning, resulting in a continuing deterioration of the grounds and facilities, which may place the district at risk to potential 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.

For 2024-25 costs/revenues, see Figure 4 – FY 2024-25 Actual Costs and Revenues.

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4 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2025-26 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 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 2025-26 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 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 assessments. This hearing is currently scheduled for July 15, 2025. At this hearing, the City Council would consider approval of a resolution confirming the assessments for fiscal year 2025-26. 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 2025-26.

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 specially 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 provide several important requirements, including property-owner balloting and approval for the imposition of new or increased assessments if greater than the formation level assessments. No vote is required this year because the proposed increase to the assessments is less than the maximum assessment amounts approved at formation of the LMD and no change to the assessment calculation is proposed.

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5 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2025-26

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.

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6 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2025-26 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.

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7 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2025-26 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.

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8 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2025-26 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, 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 to approximately $800 depending on the maintenance level with over $800,000 worth of improvements necessary in the next decade if the city was to restore the irrigation to an operational level and the planting to a level more in line with the approved development. The City is taking a first step to restore the assessments from last year’s amount of $252.91 to the amount approved post Proposition 218, $389.56 and 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.

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9 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2025-26 Estimate of Cost and Budget – Fiscal Year 2025-26

The following budget shows the estimate of cost of the Improvements to be funded by the Maintenance District in Fiscal Year 2025-26.

Figure 1 – Estimate of Costs and Revenues

City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch
2025-26 Estimate of Costs
Budget
Installation, Maintenance, and Servicing Costs
Landscaping (maintenance)
Basic maintenance $6,000.00
Extra worki $10,000.00
Water $500.00
Fuel transition Zones (Firebreak) 287,000 sq. ft.

Weed abatement $7,740.00
Total for Installation, Maintenance and Servicing $24,240.00 Incidental and Administration Costsii
City of Pleasanton Assessment Administration $1,800.00
County Fees for Collection of Assessment $675.24
Proposition 218 Compliance $36,000.00
Total Incidental and Administrative Costs $38,475.24
Amount to/(from) Reserve Fundiii
Reserve/Long-term Replacement Fund for scheduled long-term replacement of various district improvements ($21,915.32) Total Costs $40,799.92
Budget Allocation to Property
Single Family
Number of Equivalent Assessment Total
Parcels/Units Units (SFE)iv Rate Assessmentv
103 103 $396.18 $40,799.92
Explanation of Annual Assessment Rate per Unit:
102 units @ $396.18 assessment per year (= $389.56 + $6.62 County Collection Fee) 1 unit @ $389.56 assessment per year (City parcel, savings of the $6.62 County Collection Fee) Notes to Estimate
i. Contingency to address maintenance that is not routine in nature, such as pruning/removing failed trees or tree limbs. The $10,000 estimate for extra work will still not be enough to address the trees that should be pruned or removed, but will help to reduce liability.

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10 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2025-26 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. iii. At the time of this report a fund balance of approximately $28,000 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. 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.

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11 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2025-26 Method of Assessment Apportionment

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.”

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12 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2025-26 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.”

i. Proximity
ii. Expanded or improved access
iii. Views

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

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13 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2025-26 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.

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14 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2025-26 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.

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.

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

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15 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2025-26 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.

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.

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16 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2025-26 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 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

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17 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2025-26 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%.

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.

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18 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2025-26 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)

In SVTA, the court noted that even a local agency-wide assessment district is appropriate under the right conditions:

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.

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19 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2025-26 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.

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20 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2025-26

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.

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 beyond the original amount approved at formation, which in the case of the Bonde Ranch Landscape Maintenance District was $389.56 annually, as identified in Resolution 97-83. The same amount has been assessed since 2000-2001, which is $252.91 per SFE or parcel. The city is restoring the assessment amount per Resolution 97-83, but 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.

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21 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2025-26 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.

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22 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2025-26 Assessment

The amount to be paid for said Improvements and the expense incidental thereto, to be paid by the Maintenance District for the Fiscal Year 2025-26 is generally as follows:

Figure 2 – Summary Cost Estimate – Bonde Ranch LMD No. 1993-2

Budget Item Budgeted
Cost
Installation, Maintenance, and Servicing Costs $24,240.00 Incidental and Administration Costs $38,239.62
Amount to/(from) Reserve Fund ($21,679.70)
Total Budget $40,799.92

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23 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2025-26 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 2025-26 are restored to the Resolution 97-83 amount of $389.56 per single-family equivalent (SFE) benefit unit.

City Engineer/Engineer of Work

By:

Adam M. Nelkie, License No. C78830

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24 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2025-26 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______________, 2025.

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

Page 331 of 864 ends

25 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2025-26 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 2025-26, and are incorporated herein by reference, and made a part of this Diagram and this Report.

Page 332 of 864 ends

26 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2025-26 Assessment Roll FY 2025-26 - Bonde Ranch LMD No. 1993-2

COLLECTION

ASSESSMENT ASSESSOR'S ASSESSMENT CHARGE
DIAGRAM NO. PARCEL NUMBER AMOUNT 0.017 TOTAL

1 948-0019-39 $389.56 $6.62 $396.18
2 948-0019-40 389.56 6.62 396.18
3 948-0018-04 389.56 6.62 396.18
4 948-0018-05 389.56 6.62 396.18
5 948-0018-06 389.56 6.62 396.18
6 948-0018-08 389.56 6.62 396.18
7 948-0018-09 389.56 6.62 396.18
8 948-0018-10-1 389.56 6.62 396.18
9C 948-0018-11-2 389.56 6.62 396.18
11 946-2542-79 389.56 6.62 396.18
12 946-2542-80 389.56 6.62 396.18
13 946-2542-81 389.56 6.62 396.18
14 946-2542-82 389.56 6.62 396.18
15 946-2542-83 389.56 6.62 396.18
16 946-2542-84 389.56 6.62 396.18
17 946-2542-85-3 389.56 6.62 396.18
18C 946-2542-86-5 389.56 6.62 396.18
19 946-2542-87-3 389.56 6.62 396.18
20 946-2542-88-2 389.56 6.62 396.18
21 946-2542-89-3 389.56 6.62 396.18
22 946-2542-90 389.56 6.62 396.18
23 946-2550-38 389.56 6.62 396.18
24 946-2550-39 389.56 6.62 396.18
25 946-2550-40 389.56 6.62 396.18
26 946-2550-41 389.56 6.62 396.18
27 946-2550-42 389.56 6.62 396.18
28 946-2542-69 389.56 6.62 396.18
29 946-2542-68 389.56 6.62 396.18
30 946-2542-67 389.56 6.62 396.18
31 946-2542-66 389.56 6.62 396.18
32 946-2542-65 389.56 6.62 396.18
33 946-2542-64 389.56 6.62 396.18
34 946-2542-63 389.56 6.62 396.18
35 946-2542-62 389.56 6.62 396.18
36 946-2542-61 389.56 6.62 396.18
37 946-2542-60 389.56 6.62 396.18
38C 946-2542-59 389.56 6.62 396.18
39 946-2542-58 389.56 6.62 396.18
40 946-2542-78 389.56 6.62 396.18
41 946-2542-77 389.56 6.62 396.18
42 946-2542-76 389.56 6.62 396.18
43 946-2542-75 389.56 6.62 396.18
44 946-2542-74 389.56 6.62 396.18

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27 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2025-26 45 946-2542-73 389.56 6.62 396.18
46 946-2542-72 389.56 6.62 396.18
47 946-2542-71 389.56 6.62 396.18
48 946-2542-70 389.56 6.62 396.18
49 948-0019-03 389.56 6.62 396.18
50 948-0019-04 389.56 6.62 396.18
51 948-0019-05 389.56 6.62 396.18
52 948-0019-06 389.56 6.62 396.18
53 948-0019-07 389.56 6.62 396.18
54 948-0019-08 389.56 6.62 396.18
55 948-0019-09 389.56 6.62 396.18
56 948-0019-10 389.56 6.62 396.18
57 948-0019-11 389.56 6.62 396.18
58C 948-0005-29 389.56 6.62 396.18
59 948-0005-30 389.56 6.62 396.18
60 948-0005-31 389.56 6.62 396.18
61 948-0005-32 389.56 6.62 396.18
62 948-0005-33 389.56 6.62 396.18
63 948-0005-34 389.56 6.62 396.18
64 948-0005-35 389.56 6.62 396.18
65 948-0005-36 389.56 6.62 396.18
66 948-0005-37 389.56 6.62 396.18
67 948-0005-38 389.56 6.62 396.18
68 948-0005-39 389.56 6.62 396.18
69 948-0005-40 389.56 6.62 396.18
70 948-0005-41 389.56 6.62 396.18
71 948-0019-14 389.56 6.62 396.18
72 948-0019-15 389.56 6.62 396.18
73 948-0019-16 389.56 6.62 396.18
74 948-0019-17 389.56 6.62 396.18
75 948-0019-18 389.56 6.62 396.18
76 948-0019-19 389.56 6.62 396.18
77 948-0019-20 389.56 6.62 396.18
78 948-0019-21 389.56 6.62 396.18
79 948-0019-22 389.56 6.62 396.18
80 948-0019-23 389.56 6.62 396.18
81 948-0019-25 389.56 6.62 396.18
82 948-0019-26 389.56 6.62 396.18
83 948-0019-27 389.56 6.62 396.18
84 948-0019-28 389.56 6.62 396.18
85 948-0019-29 389.56 6.62 396.18
86 948-0019-30 389.56 6.62 396.18
87 948-0019-32 389.56 6.62 396.18
88 948-0019-33 389.56 6.62 396.18
89 948-0019-34 389.56 6.62 396.18
90 948-0019-35 389.56 6.62 396.18
91 948-0019-36 389.56 6.62 396.18
92 948-0019-37 389.56 6.62 396.18
93 948-0019-38 389.56 6.62 396.18
M1 948-0018-16 389.56 6.62 396.18

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28 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2025-26 M2 948-0018-17 389.56 6.62 396.18
M3 948-0018-18 389.56 6.62 396.18
M4 948-0018-19 389.56 6.62 396.18
M5 948-0018-20 389.56 6.62 396.18
M6 948-0018-21 389.56 6.62 396.18
M7 948-0018-22 389.56 6.62 396.18
M8 948-0018-23 389.56 6.62 396.18
M9 948-0018-24 389.56 6.62 396.18
M10 948-0018-25 389.56 6.62 396.18
CITY 948-0014-1-39 389.56 n/a 389.56

103 TOTAL ASSESSMENTS: $40,124.68 $675.24 $40,799.92

Figure 4 – FY 2024-25 Actual Costs and Revenues
2024-25 Project Expenditures

136 Bonde Ranch
Item Budget Expenditures*
Anticipated
Remaining
Expenditures
Anticipated
Year-end
Balance
Installation and Maintenance
Basic Maintenance $6,000.00 $5,500.00 $500.00 $0.00
Extra Work** $5,747.73 $630.00 $0.00 $5,117.73
Water*** $1,000.00 $387.50 $77.50 $535.00
Weed Abatement $11,502.00 $0.00 $11,502.00 $0.00
Subtotal $24,249.73 $6,517.50 $12,079.50 $5,652.73

Incidental and Administrative
City of Pleasanton Assessment Administration $1,800.00 $1,831.04 $0.00 -$31.04 County Fees for Collection of Assessment $439.62 $439.62 $0.00 $0.00 Proposition 218-compliance process $0.00 $0.00 $2,000.00 -$2,000.00 Subtotal $2,239.62 $2,270.66 $2,000.00 -$2,031.04

Annual Assessment $24,265.80

Reserve
Starting Fund Balance (7/1/2024) $25,000.00
Budgeted Year-End Fund Balance $22,776.45
Anticipated Year-End Fund Balance $26,398.14

* Expenditures from July 1, 2024 to April 30, 2025

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29 City of Pleasanton
Landscape Maintenance District No. 1993-2, Bonde Ranch Engineer’s Report, Fiscal Year 2025-26

** Extra work included tree pruning
*** Water is turned off, but meter and account fees still need to be paid

Page 336 of 864 ends

RESOLUTION NO. 2025-

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 2025/26; 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 2025/26.

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 2025/26. 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 2025/26.

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

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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 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 June 17, 2025.

Ayes:

Noes:

Absent:

Abstain:

_____________________________
Jocelyn Kwong, City Clerk

APPROVED AS TO FORM:

____________________________
Daniel G. Sodergren, City Attorney

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CITY OF PLEASANTON

Landscape Maintenance District No. 1994-1, Oak Tree Farm

Engineer’s Report

Fiscal Year 2025-26

June 2025

Pursuant to the Landscaping and Lighting Act of 1972, government code and article XIIID of the California Constitution

EXHIBIT A

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City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2025-26

(This page intentionally left blank)

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City of Pleasanton

Mayor and City Council
Jack Balch, Mayor
Jeff Nibert, Vice Mayor
Craig Eicher, Councilmember
Matt Gaidos, Councilmember
Julie Testa, Councilmember

City Manager
Gerry Beaudin

City Engineer
Adam Nelkie

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City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2025-26 Table of Contents

PAGE NO.

Introduction .......................................................................................................................................... 1

Executive Summary ............................................................................................................................. 1

Overview ............................................................................................................................................... 1 Landscape Maintenance District No. 1994-1, Oak Tree Farm .......................................................... 2 Engineer’s Report and Proposed Assessments ................................................................................ 4 Legal Requirements ........................................................................................................................... 4

Plans & Specifications ........................................................................................................................ 6 Introduction ......................................................................................................................................... 6 Oak Tree Farm Description of Improvements .................................................................................... 7 Recommended Capital Improvements ............................................................................................... 8

Method of Assessment Apportionment .......................................................................................... 11 Method of Apportionment ................................................................................................................. 11 Discussion of Benefits ...................................................................................................................... 11 General vs. Special Benefits ............................................................................................................ 13 Calculating General Benefit and Special Benefit Paid from Other Funds ....................................... 14 Zones of Benefit ............................................................................................................................... 18 Method of Assessment ..................................................................................................................... 18 Residential Properties ...................................................................................................................... 19 Other Properties ............................................................................................................................... 20 The Assessment Rate will Increase Annually .................................................................................. 20 Appeal of Assessments Levied to Property ..................................................................................... 20 Assessment Funds Must be Expended Within the Maintenance District Area................................ 20

Assessment ........................................................................................................................................ 21

Certificates Page ................................................................................................................................ 23

Assessment Diagram ........................................................................................................................ 24

Assessment Roll FY 2025-26 - Oak Tree Farm LMD No. 1994-1 ................................................... 25

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iii

City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2025-26 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 2025-26 – Oak Tree Farm LMD No. 1994-1 ...................................... 24

Figure 4 – FY 2024-25 Actual Costs and Revenues – Oak Tree Farm LMD No. 1994-1 ............. 25

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1 Introduction

Executive Summary
The Oak Tree Farm Landscape Maintenance District, 1994-1, was created in 1994, with phase 2 annexed into the district in 1999, and totals 42 parcels. The purpose of the district is to fund the maintenance of the Oak Tree Farm subdivision. The district was formed prior to the passage of Proposition 218, the “Right to Vote on Taxes Act” which requires property owner approval to impose or increase assessments.

When the district was formed, an inflation escalator was built into the assessment with a maximum assessment at the time of $1,000 per parcel annually. However, the inflation escalator has not been applied and assessments have remained the same since they were last lowered in FY 1999-2000 to $465.75. The equivalent of the 2000 assessment of $465.75 in today’s dollars, based on the Consumer Price Index for California, is $945.19.

The reduced assessment has led to a severe decline in the level of maintenance, a lack of sufficient funding for capital improvement projects, and forced the City to shut down the irrigation system. The lack of irrigation has led to an even further decline of the landscape. The district is now out of compliance with the level of maintenance required as part of the development approval, which exposes the district and the property owners to increased liability.

Over the years, staff has had discussions with the residents about a potential increase in assessment rates to achieve a sustainable maintenance level but has yet to actually increase assessments. It wasn’t until research completed this year that staff determined that an assessment of up to $1,000 with an inflation escalator was approved at the time that the district was formed. Staff is recommending that the assessment be restored to the 1998 level of $617.41, the first year of assessments at Oak Tree Farm after Proposition 218 went into effect. The restoration of the post-Proposition 218 assessment amount is only a first step though, as maintenance costs are estimated to be closer to $1,000 annually to properly maintain the district and complete the necessary improvements, such as tree pruning and removal, irrigation replacement, and fence replacements and repair. The budget for this fiscal year will require drawing down the reserve by around $25,000 due to the consultant costs, estimated at approximately $9,000, plus staff time, and significant pruning and fence repair anticipated this year.

Future stepped assessment increases are expected to place the district in a fiscally sustainable position though.

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

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2 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2025-26

• 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 Districts’ 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.

Based on research of the historical documents and in consultation with their consultant, SCI Consulting Group, and an attorney that specializes in assessment law, JarvisFay, the fiscal year 2025-26 assessments for District 1994-1 can be restored to the amount approved by the formation documents for the Oak Tree Farm LMD, as recorded with Resolution 94-110, an amount of up to $1,000 with an inflation escalator based on the Consumer Price Index for the year. Under Proposition 218, a property owner vote is only required when these assessments are increased, and an assessment is not increased if it is set at an amount that is no more than the maximum amount initially authorized when the assessment district was created. (Cal. Const. Art. XIII D, § 5(b); Gov. Code § 53750(h)(2)(B).) However, as a first step to a more sustainable assessment level, staff is only restoring the assessments as approved by Resolution 94-110 and implemented with Resolution 98-076, an amount of $617.41 per parcel per year. Further step increases will be proposed in subsequent years until a sustainable assessment amount is reached. With a total of 42 parcels in the district (including one public parcel), the fiscal year 2025-26 total assessment will be $26,361.72.

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3 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2025-26

Assessment revenues were lowered in 1999 and then again in 2000 and have remained the same since then, however, over the years, operational costs and utility costs have increased while the assessment revenues have remained the same. Raising the fiscal year 2025-26 total assessment revenue, although a step in the right direction, 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, lighting, and other district improvements. The Engineer’s Report projects that the City will need to reduce landscape maintenance and necessary capital improvement costs to remain below the assessments.

Over the years, operational costs and utility costs have increased, however the assessment revenues have remained the same. The fiscal year 2025-26 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 maintenance.

An increase in the annual assessment will be necessary to meet the maintenance standards of the District in the future. The city will be charging administrative time and consultant fees for the Proposition 218-compliant Engineer’s Report, which will cost approximately $9,000, plus staff time, and will need to be funded from the reserve fund.

Water costs increased thirty percent in calendar year 2024, 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 have a limited impact to the Oak Tree Farm LMD, but standard water meter fees still apply and 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, fence and lighting repair, 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. The majority of shrubs and groundcovers have died and the lack of irrigation places stress on the trees and reduces their ability to weather drought conditions. Without an increase in assessments, the district may be at risk to fines or litigation. To limit liability for the district, it will be necessary for the City to raise assessments to be consistent with the approved formation document rates.

Funding from the increased assessment will allow the City to implement necessary facility upgrades and improve maintenance, resulting in decreased liability.

For 2024-25 costs/revenues, see Figure 4 – FY 2024-25 Actual Costs and Revenues.

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4 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2025-26 Engineer’s Report and Proposed Assessments
Each year for which the assessments will be approved, 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 maintenance, improvements, and services (“Improvements”) that would be funded by the proposed fiscal year 2025-26 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”).

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 specially 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.

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5 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2025-26 required this year because the proposed increase to the assessments is less than the maximum assessment amounts approved at formation of the LMD and no change to the assessment calculation is proposed.

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6 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2025-26 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.

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.

“Maintain” or “maintenance” means the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including:

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7 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2025-26 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.

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

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8 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2025-26 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 and lighting 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 $465.75 to approximately $900-1,000 with about $400,000 worth of improvements expected over the next decade. The City intends 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 for an assessment increase at the end of next fiscal year.

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9 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2025-26 Estimate of Cost and Budget – Fiscal Year 2025-26

The following budget shows the estimate of cost of the Improvements to be funded by the Maintenance District in Fiscal Year 2025-26.

Figure 1 – Estimate of Costs and Revenues

City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm 2025-26 Estimate of Costs
Budget
Installation, Maintenance, and Servicing Costs
Landscaping (maintenance)
Basic landscape maintenance $7,560.00
Extra worki $25,000.00
Water – All planting $400.00
Scenic easement weed abatement $7,740.00
Total for Installation, Maintenance and Servicing $40,700.00 Incidental and Administration Costsii
City of Pleasanton Assessment Administration $1,800.00
County Fees for Collection of Assessment $437.65
Proposition 218 Compliance $9,000.00
Total Incidental and Administrative Costs $11,237.65
Amount to/(from) Reserve Fundiii
Reserve/Long-term Replacement Fund for scheduled long-term replacement of various district improvements ($25,575.93) Total Costs $26,361.72
Budget Allocation to Property
Single Family
Number of Equivalent Assessment Total
Parcels/Units Units (SFE)iv Rate Assessmentv
42 42 $627.91 $26,361.72
Explanation of Annual Assessment Rate per Unit:
41 units @ $627.91 assessment per year (= $617.41 + $10.50 County Collection Fee) 1 unit @ $617.41 assessment per year (City parcel, savings of $10.50 County Collection Fee)

Notes to Estimate
i. Contingency to address maintenance that is not routine in nature, such as repair or replacement of broken or damaged fencing and pruning/removing failed trees or tree limbs. Past fence repairs have been in the range of $25,000 while work on oak trees is typically a minimum of $5,000 per tree.

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10 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2025-26 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. iii. At the time of this report a fund balance of approximately $71,000 remains for Landscape Maintenance District 1994-1. The projected 2025-26 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.

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11 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2025-26 Method of Assessment Apportionment

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.

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12 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2025-26 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."

i. Proximity
ii. Expanded or improved access
iii. Views

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:

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13 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2025-26 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.

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

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14 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2025-26

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.

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

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15 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2025-26 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%

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16 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2025-26 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.

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17 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2025-26 construct and maintain the local storm drainage system, the budget would increase by at least 10%.

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.

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% (Amoritized value of initial construction)

= 50.0% (Total General Benefit paid from Other Funds)

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18 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2025-26

In SVTA, the court noted that even a local agency-wide assessment district is appropriate under the right conditions:

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.

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19 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2025-26 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.

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.

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20 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2025-26 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.

The Assessment Rate will Increase Annually
It should also be noted that the Maintenance District assessment rates can be increased up to the original amount approved at formation, which in the case of the Oak Tree Farm Landscape Maintenance District was $1,000 annually with a Consumer Price Index (CPI) escalator to the assessment rate. The total assessment rate will be restored to $617.41 per SFE or parcel this year. The City is starting by restoring the assessment amount per Resolution 98-076, but will be stepping up assessments over time to a sustainable level.

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21 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2025-26 Assessment

The amount to be paid for said Improvements and the expense incidental thereto, to be paid by the Maintenance District for the Fiscal Year 2025-26 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 $40,700.00 Incidental and Administration Costs $11,237.65
Amount to/(from) Reserve Fund ($25,575.93)
Total Budget $26,361.72

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22 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2025-26 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 2025-26 are restored to the Resolution 94-110 assessment amount of rate of $617.41 per single-family equivalent (SFE) benefit unit.

City Engineer/Engineer of Work

By:

Adam M. Nelkie, License No. C78830

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23 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2025-26 Certificates Page

LANDSCAPE MAINTENANCE DISTRICT 1994-1, OAK TREE FARM CITY OF

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______________, 2025.

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

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24 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2025-26 Assessment Diagram
The Maintenance District includes all properties within the Oak Tree Farm 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 2025-26, and are incorporated herein by reference, and made a part of this Diagram and this Report.

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25 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2025-26 Assessment Roll FY 2025-26 - Oak Tree Farm LMD No. 1994-1

COLLECTION

ASSESSMENT ASSESSOR'S ASSESSMENT CHARGE
DIAGRAM NO. PARCEL NUMBER AMOUNT 0.017 TOTAL
Phase I
1 946-4585-001 $617.41 $10.50 $627.91
2 946-4585-002 617.41 10.50 627.91
3 946-4585-003 617.41 10.50 627.91
4 946-4585-004 617.41 10.50 627.91
5 946-4585-005 617.41 10.50 627.91
6 946-4585-006 617.41 10.50 627.91
7 946-4585-007 617.41 10.50 627.91
8 946-4585-008 617.41 10.50 627.91
9 946-4585-009 617.41 10.50 627.91
10 946-4585-010 617.41 10.50 627.91
11 946-4585-046 617.41 10.50 627.91
12 946-4585-047 617.41 10.50 627.91
13 946-4585-013 617.41 10.50 627.91
14 946-4585-014 617.41 10.50 627.91
15 946-4585-015-01 617.41 10.50 627.91
16 946-4585-016 617.41 10.50 627.91
17 946-4585-017 617.41 10.50 627.91
18 946-4585-018 617.41 10.50 627.91
19 946-4585-019 617.41 10.50 627.91
20 946-4585-020 617.41 10.50 627.91
21 946-4585-021 617.41 10.50 627.91
22L1 946-4585-050 617.41 10.50 627.91
22L2 946-4585-051 617.41 10.50 627.91
22L3 946-4585-052 617.41 10.50 627.91
23 946-4585-023-05 617.41 10.50 627.91
Phase II
L1 946-4585-029 617.41 10.50 627.91
L2 946-4585-030 617.41 10.50 627.91
L3 946-4585-031 617.41 10.50 627.91
L4 946-4585-032 617.41 10.50 627.91
L5 946-4585-033 617.41 10.50 627.91
L6A 946-4585-048 617.41 10.50 627.91
L6B 946-4585-049 617.41 10.50 627.91
L7 946-4585-035 617.41 10.50 627.91
L8 946-4585-043 617.41 10.50 627.91
L9 946-4585-036 617.41 10.50 627.91
L10 946-4585-037 617.41 10.50 627.91
L11 946-4585-038 617.41 10.50 627.91
L12 946-4585-039 617.41 10.50 627.91
L13 946-4585-040 617.41 10.50 627.91
L14 946-4585-041 617.41 10.50 627.91

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26 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2025-26 L15 946-4585-042 617.41 10.50 627.91
City 946-4585-044 617.41 n/a 617.41

42 TOTAL
ASSESSMENTS: $25,931.22 $430.50 $26,361.72

Figure 4 – FY 2024-25 Actual Costs and Revenues
2024-25 Project Expenditures

138 Oak Tree Farm
Item Budget Expenditures*
Anticipated
Remaining
Expenditures
Anticipated
Year-end
Balance
Installation and Maintenance
Basic Maintenance $7,200.00 $6,600.00 $600.00 $0.00
Extra Work** $4,000.00 $4,000.00 $0.00 $0.00
Water*** $1,000.00 $447.38 $55.48 $497.14
Weed Abatement $7,100.00 $0.00 $7,100.00 $0.00
Subtotal $19,300.00 $11,047.38 $7,755.48 $497.14

Incidental and Administrative
City of Pleasanton Assessment Administration $1,800.00 $1,831.04 $0.00 -$31.04 County Fees for Collection of Assessment $324.31 $324.31 $0.00 $0.00 Proposition 218-compliance process $0.00 $0.00 $2,000.00 -$2,000.00 Subtotal $2,124.31 $2,155.35 $2,000.00 -$2,031.04

Annual Assessment $19,885.81

Reserve
Starting Fund Balance (7/1/2024) $72,000.00
Budgeted Year-End Fund Balance $70,461.50
Anticipated Year-End Fund Balance $68,927.60

* Expenditures from July 1, 2024 to April 30, 2025
** Extra included tree pruning
*** Water is turned off, but meter and account fees still need to be paid

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27 City of Pleasanton
Landscape Maintenance District No. 1994-1, Oak Tree Farm Engineer’s Report, Fiscal Year 2025-26

i
ii
iii
iv

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RESOLUTION NO. 2025-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON

DECLARING THE INTENTION TO ORDER IMPROVEMENTS FOR THE LIGHTING & LANDSCAPE MAINTENANCE DISTRICT NO. 1995-1 MOLLER RANCH FOR FISCAL YEAR 2025/26; DECLARING THE INTENTION TO CONTINNUE THE LEVY AND COLLECTION OF ASSESSMENTS; AND SETTING THE DATE FOR THE PUBLIC

HEARING
W
HEREAS, 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. 1995-1 Moller 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
W
HEREAS, 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. 1995-1 Moller Ranch for Fiscal Year 2025/26.

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

S
ECTION 1. The City Engineer is designated by this Council as the Engineer of Work for Lighting & Landscape Maintenance District No. 1995-1, Moller Ranch, during fiscal year 2025/26. The area of land to be assessed is located in the City of Pleasanton, Alameda County.

S
ECTION 2. The City Council intends to continue to levy and collect assessments within Lighting & Landscape Maintenance District No. 1995-1 Moller Ranch, during fiscal year 2025/26.

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

The m
aintenance 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 6617, City of Pleasanton.

ATTACHMENT 6

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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 June 17, 2025.

Ayes:

Noes:

Absent:

Abstain:

_____________________________
Jocelyn Kwong, City Clerk

APPROVED AS TO FORM:

____________________________
Daniel G. Sodergren, City Attorney

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CITY OF PLEASANTON

Landscape Maintenance District No. 1995-1, Moller Ranch

Engineer’s Report

Fiscal Year 2025-26

June 2025

Pursuant to the Landscaping and Lighting Act of 1972, government code and article XIIID of the California Constitution

EXHIBIT A

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City of Pleasanton
Landscape Maintenance District No. 1995-1, Moller Ranch Engineer’s Report, Fiscal Year 2025-26

(This page intentionally left blank)

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City of Pleasanton

Mayor and City Council
Jack Balch, Mayor
Jeff Nibert, Vice Mayor
Craig Eicher, Councilmember
Matt Gaidos, Councilmember
Julie Testa, Councilmember

City Manager
Gerry Beaudin

City Engineer
Adam Nelkie

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City of Pleasanton
Landscape Maintenance District No. 1995-1, Moller Ranch Engineer’s Report, Fiscal Year 2025-26 Table of Contents

PAGE NO.

Introduction .......................................................................................................................................... 1

Executive Summary ............................................................................................................................. 1

Overview ............................................................................................................................................... 1 Landscape Maintenance District No. 1995-1, Moller Ranch .............................................................. 2 Engineer’s Report and Proposed Assessments ................................................................................. 4 Legal Requirements ............................................................................................................................ 4

Plans & Specifications ........................................................................................................................ 6 Introduction ......................................................................................................................................... 6 Moller Ranch Description of Improvements ....................................................................................... 7 Recommended Capital Improvements ............................................................................................... 8

Method of Assessment Apportionment .......................................................................................... 11 Method of Apportionment ................................................................................................................. 11 Discussion of Benefits....................................................................................................................... 11 General vs. Special Benefits ............................................................................................................. 13 Calculating General Benefit and Special Benefit Paid from Other Funds ........................................ 14 Zones of Benefit ................................................................................................................................ 18 Method of Assessment ..................................................................................................................... 19 Residential Properties ....................................................................................................................... 20 Other Properties ................................................................................................................................ 20 The Assessment Rate will Increase Annually .................................................................................. 20 Appeal of Assessments Levied to Property ...................................................................................... 20 Assessment Funds Must be Expended Within the Maintenance District Area ................................ 21

Assessment ........................................................................................................................................ 22

Certificates Page ................................................................................................................................ 24

Assessment Diagram ........................................................................................................................ 25

Assessment Roll FY 2025-26 - Moller Ranch LMD No. 1995-1 ...................................................... 26

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iii

City of Pleasanton
Landscape Maintenance District No. 1995-1, Moller Ranch Engineer’s Report, Fiscal Year 2025-26 List of Figures

Figure 1 – Estimate of Costs and Revenues ................................................................................................. 7

Figure 2 – Summary Cost Estimate – Moller Ranch LMD No. 1995-1 ................................................. 20

Figure 3 – Assessment Roll FY 2025-26 – Moller Ranch LMD No. 1995-1 ......................................... 24

Figure 4 – FY 2024-25 Actual Costs and Revenues – Moller Ranch LMD No. 1995-1 ................ 28

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1 Introduction

Executive Summary
The Moller Ranch Landscape Maintenance District, 1995-1, was created in 1995 as a means to fund the maintenance of the designated landscaped and open space areas, and common area features for the 101 parcel Moller Ranch subdivision. The district was formed prior to the passage of Proposition 218, the “Right to Vote on Taxes Act” which requires property owner approval to impose or increase assessments.

When the district was formed, an inflation escalator was built into the assessment with a maximum assessment at the time of $1,000 per parcel annually. However, the inflation escalator has not been applied and assessments have remained the same since they were last lowered in FY 1999-2000 to $560.53. The equivalent of the 2000 assessment of $560.53 in today’s dollars, based on the Consumer Price Index for California, is $1,137.53.

The reduced assessment has led to a severe decline in the level of maintenance, a lack of sufficient funding for capital improvement projects, and forced the city to shut down a portion of the irrigation system. The lack of irrigation has led to an even further decline of the landscape. The district is now out of compliance with the level of maintenance required as part of the development approval, which exposes the district and the property owners to increased liability.

Over the years, staff has had discussions with the HOA about a potential increase in assessment rates to achieve a sustainable maintenance level but has yet to actually increase assessments. It wasn’t until the city conducted research this year that staff determined that an assessment of up to $1,000 with an inflation escalator was approved at the time that the district was formed. Staff is recommending that the assessment be restored to the 1997 level of $675.63, the first year after Proposition 218 went into effect. The restoration of the post-Proposition 218 assessment amount is only a first step though, as maintenance costs are estimated to be closer to $1,000 annually to properly maintain the district and complete the necessary improvements, such as tree pruning, irrigation replacement, turf conversions, and lighting replacement and upgrades. The budget for this fiscal year will require drawing down the reserve by around $24,000 due to the consultant costs, estimated at approximately $9,000, and planned maintenance improvements, estimated at $30,000, but future stepped assessment increases are expected to place the district in a fiscally sustainable position.

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

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2 City of Pleasanton
Landscape Maintenance District No. 1995-1, Moller Ranch Engineer’s Report, Fiscal Year 2025-26

Landscape Maintenance District No. 1995-1, Moller Ranch Assessment Background
The Moller Ranch Landscape Maintenance District No. 1995-1 (“District 1995-1” or “Maintenance District”) was formed in 1995 as a Condition of Approval for the Moller Ranch development, to fund certain landscape improvements within the Moller Ranch subdivision.

The development included a planned unit development with 99 residential dwelling parcels: 62 townhomes, 23 single-family production lots, and 14 single-family custom lots on approximately 35 acres of a 198-acre site located generally to the west/northwest of the Foothill Road/Muirwood Drive intersection. As part of a subsequent ordinance, the approval of the townhomes was modified to approve single- family homes. The subdivision also contains a City owned parcel that has a water tank, and a small parking lot parcel owned by the Moller Ranch Owner’s Association and managed by the City. The total number of parcels served by District 1995-1 at present time is 101 parcels.

The Moller Ranch Landscape Maintenance District No. 1995-1 purpose is to fund the maintenance of the existing Moller Ranch subdivision designated landscaped areas, open space slopes, fuel transition zones (fire breaks), entry features, open space drainage ditches, irrigation systems, lighting, trees in the open space and designated landscaped areas, groundcover and irrigation systems.

District 1995-1 is funded by the benefit assessment approved in 1995 (“Assessment”), and does not receive any direct revenues from property taxes or any other funding sources.

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3 City of Pleasanton
Landscape Maintenance District No. 1995-1, Moller Ranch Engineer’s Report, Fiscal Year 2025-26 increased if it is set at an amount that is no more than the maximum amount initially authorized when the assessment district was created. (Cal. Const. Art. XIII D, § 5(b); Gov. Code § 53750(h)(2)(B).) However, as a first step to a more sustainable assessment level, staff is only restoring the assessments as approved by Resolution 97-84, which was the first assessment following the implementation of Proposition 218, and was $675.63 per parcel per year. With a total of 101 parcels in the district (including two public parcels), the fiscal year 2025-26 total assessment will be $69,376.14.

Assessment revenues were lowered in 1999 and have remained the same since then, however, over the years, operational costs and utility costs have increased while the assessment revenues have remained the same. The proposed increase to the fiscal year 2025-26 total assessment revenue, although a step in the right direction, 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, lighting, and other district improvements. The Engineer’s Report projects that the City will need to reduce landscape maintenance and water use so that landscape maintenance and necessary capital improvement costs remain below assessments.

An increase in the annual assessment will be necessary to meet the maintenance standards of the district in the future. The city plans to restore the assessments to the approved amount in steps to reduce the burden to property owners. This stepped increase will help to address increased water costs, which require a significant portion of the LMD budget, and which increased thirty percent in calendar year 2024, another twelve percent in 2025, and are projected to continue to increase in future years. The assessment increase will also help to pay for necessary infrastructure and treatment costs so that the level of maintenance and care is restored back to the necessary maintenance standards of the district established by Ordinance 1503.

Additionally, the assessment increase will help to fund the improvements required by Assembly Bill 1572, which was passed by the State Assembly on October 13, 2023.

The bill relates to water use on lawns within the district and requires that no irrigation be used on nonfunctional turf areas prior to January 1, 2029. The district has two areas that are considered “nonfunctional turf” by the bill, one at each entry, that will need to be removed and replaced. The turf conversion is estimates to cost around $80,000.

Staff administration time and the consultant fees for Proposition 218 compliance are included in the assessments. The consultant fees for the Proposition 218 compliant Engineer’s Report will cost approximately $9,000 and will come from the reserve fund, in addition to staff time. Without the proposed increase in assessments, the district may be at risk to fines or litigation. To limit liability for the district, the city intends to raise assessments to be consistent with the approved formation document rates, which were established by Resolution 95-102 as $1,000 annually maximum with an escalator based on the Consumer Price Index (CPI) for the Bay Area. Staff and the consultant plan to

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4 City of Pleasanton
Landscape Maintenance District No. 1995-1, Moller Ranch Engineer’s Report, Fiscal Year 2025-26 analyze the needs of the district and impacts of the new state laws to establish a plan to increase assessments for the coming fiscal years.

Funding from the increased assessment will allow the City to implement necessary facility upgrades and improve maintenance, resulting in decreased liability.

For 2024-25 costs/revenues, see Figure 4 – FY 2024-25 Actual Costs and Revenues.

Engineer’s Report and Proposed Assessments
Each year for which the assessments will be approved, 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.

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5 City of Pleasanton
Landscape Maintenance District No. 1995-1, Moller Ranch Engineer’s Report, Fiscal Year 2025-26 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.

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6 City of Pleasanton
Landscape Maintenance District No. 1995-1, Moller Ranch Engineer’s Report, Fiscal Year 2025-26 Plans & Specifications

Introduction
The work and Improvements to be undertaken by the City of Pleasanton within the Landscape Maintenance District No. 1995-1, Moller 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.

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.

“Maintain” or “maintenance” means the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including:

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7 City of Pleasanton
Landscape Maintenance District No. 1995-1, Moller Ranch Engineer’s Report, Fiscal Year 2025-26 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.

Moller 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, lighting, 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 6618, City of Pleasanton.

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8 City of Pleasanton
Landscape Maintenance District No. 1995-1, Moller Ranch Engineer’s Report, Fiscal Year 2025-26 Landscape plans and specifications for the improvements to this Landscape Maintenance District are those prepared by Greiner, Inc., dated December 1994. 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, plant replacement, lighting repair and fencing replacement in the Landscape Maintenance District No. 1995-1, Moller Ranch, are overdue, however the reserve fund balance is insufficient to complete these improvements.

Portions of the irrigation system have been turned off due to numerous breaks and the irrigation system needs to be replaced. The sections turned off are to existing established plants that can tolerate minimal water, but a lack of water can have long term impacts to the health of the plants, increasing maintenance costs and liability in the future.

The City drafted a schedule of recommended capital improvement projects that need to be addressed, such as the replacement of the irrigation system, entry lighting improvements, and the lawn conversion, 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 $560.53 to $900-1,000 depending on maintenance level with over $1 million worth of improvements necessary, including the turf conversion mandate, in the next decade if the city was to restore the landscape to be more in line with the approved development.

The City has begun discussions with the HOA 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.

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9 City of Pleasanton
Landscape Maintenance District No. 1995-1, Moller Ranch Engineer’s Report, Fiscal Year 2025-26 Estimate of Cost and Budget – Fiscal Year 2025-26

The following budget shows the estimate of cost of the Improvements to be funded by the Maintenance District in Fiscal Year 2025-26.

Figure 1 – Estimate of Costs and Revenues

City of Pleasanton
Landscape Maintenance District No. 1995-1, Moller Ranch 2025-26 Estimate of Costs
Budget
Installation, Maintenance, and Servicing Costs
Landscaping (maintenance)
Basic landscape maintenance $24,000.00
Extra worki $30,000.00
Street and Decorative Lights
Operation and repair/replacement of lights and
maintenance of electrolier and conduit
$0.00
Water – All planting $17,000.00
Power – Irrigation controllers and entry lights $3,000.00 Fuel Transition Zones (Firebreaks) $6,200.00
Total for Installation, Maintenance and Servicing $80,200.00 Incidental and Administration Costsii
City of Pleasanton Assessment Administration $2,800.00
County Fees for Collection of Assessment
Proposition 218 Compliance
$1,137.51
$9,000.00
Total Incidental and Administrative Costs $12,937.51

Amount to/(from) Reserve Fundiii
Reserve/Long-term Replacement Fund for scheduled long-term replacement of various district improvements ($23,761.37) Total Costs $69,376.14
Budget Allocation to Property
Single Family
Number of Equivalent Assessment Total
Parcels/Units Units (SFE)iv Rate Assessmentv
101 101 $687.12 $69,376.14
Explanation of Annual Assessment Rate per Unit:
99 units @ $570.06 assessment per year (= $560.53 + $9.53 County Collection Fee)

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10 City of Pleasanton
Landscape Maintenance District No. 1995-1, Moller Ranch Engineer’s Report, Fiscal Year 2025-26 2 units @ $560.53 assessment per year (City parcel, savings of $9.53*2 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. This also includes mulch replenishment to keep weeds down and anticipated lighting repairs. 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, consultant fees for the Proposition 218-compliant vote, and other incidental costs. iii. At the time of this report a fund balance of approximately $258,000 remains for Landscape Maintenance District 1995-1. The projected 2025-26 expenses, if necessary capital improvements were made, are higher than the projected annual revenues. Therefore, the City will need to continue to hold on making those improvements until the reserve fund balance is sufficient. 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 1995-1, Moller Ranch reserve/replacement funds are held in an interest-bearing account until needed for repairs to the masonry walls, entry signage, irrigation systems, lighting, landscaping or other District features.

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11 City of Pleasanton
Landscape Maintenance District No. 1995-1, Moller Ranch Engineer’s Report, Fiscal Year 2025-26 Method of Assessment Apportionment

The parcels within the Landscape Maintenance District No. 1995-1, Moller 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 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.

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12 City of Pleasanton
Landscape Maintenance District No. 1995-1, Moller Ranch Engineer’s Report, Fiscal Year 2025-26 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."

i. Proximity
ii. Expanded or improved access
iii. Views

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. 1995-1, Moller Ranch. These types of special benefit are summarized as follows:

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13 City of Pleasanton
Landscape Maintenance District No. 1995-1, Moller Ranch Engineer’s Report, Fiscal Year 2025-26 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.

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

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14 City of Pleasanton
Landscape Maintenance District No. 1995-1, Moller Ranch Engineer’s Report, Fiscal Year 2025-26

Benefit to Property Outside the Maintenance District = 5.4% 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.

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15 City of Pleasanton
Landscape Maintenance District No. 1995-1, Moller Ranch Engineer’s Report, Fiscal Year 2025-26 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 = 5.4%

Assumptions
10 parcels outside and adjacent to the District
101 parcels in the Maintenance District

Calculation
General Benefit to Property outside the Improvement District = (10 / (10 + 101)) * 60% = 5.4%

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 5.4% of the Improvements may be of benefit to property outside of the Maintenance District.

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16 City of Pleasanton
Landscape Maintenance District No. 1995-1, Moller Ranch Engineer’s Report, Fiscal Year 2025-26 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.

Total General Benefits to be Financially Contributed from Other Funds =

15.4%
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

5.4% (Outside the Maintenance District)
+ 0.0% (Inside the Maintenance District – indirect and derivative) + 10.0% (Public at Large)

= 15.4% (Total General Benefit)

Source of Financial Contributions from Other Funds to Satisfy the 15.4% 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.

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17 City of Pleasanton
Landscape Maintenance District No. 1995-1, Moller Ranch Engineer’s Report, Fiscal Year 2025-26 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%.

In other words, there is a 15.4% 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.

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18 City of Pleasanton
Landscape Maintenance District No. 1995-1, Moller Ranch Engineer’s Report, Fiscal Year 2025-26 Source of Contributions from Other Funds to Satisfy 15.4% 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)

In SVTA, the court noted that even a local agency-wide assessment district is appropriate under the right conditions:

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19 City of Pleasanton
Landscape Maintenance District No. 1995-1, Moller Ranch Engineer’s Report, Fiscal Year 2025-26 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.

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20 City of Pleasanton
Landscape Maintenance District No. 1995-1, Moller Ranch Engineer’s Report, Fiscal Year 2025-26

Residential Properties
The Moller Ranch development is a residential single-family development project consisting of a total of 101 parcels, 99 single-family home parcels, and 2 public owned parcels used as a water tank and a parking area respectively. As such, each residential property receives similar benefit from the proposed Improvements.

The Assessment Rate will Increase Annually
It should also be noted that the Maintenance District assessment rates can be increased up to the original amount approved at formation, which in the case of the Moller Ranch Landscape Maintenance District was $1,000 annually with a Consumer Price Index (CPI) escalator to the assessment rate. The total assessment rate will be restored to $675.63 per SFE or parcel this year. The city is starting by restoring the assessment amount per Resolution 97-84, but will be stepping up assessments over time to a sustainable level.

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21 City of Pleasanton
Landscape Maintenance District No. 1995-1, Moller Ranch Engineer’s Report, Fiscal Year 2025-26 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.

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22 City of Pleasanton
Landscape Maintenance District No. 1995-1, Moller Ranch Engineer’s Report, Fiscal Year 2025-26 Assessment

The amount to be paid for said Improvements and the expense incidental thereto, to be paid by the Maintenance District for the Fiscal Year 2025-26 is generally as follows:

Figure 2 – Summary Cost Estimate – Moller Ranch LMD No. 1995-1

Budget Item Budgeted
Cost
Installation, Maintenance, and Servicing Costs $80,200.00 Incidental and Administration Costs $12,937.51
Amount to/(from) Reserve Fund ($23,761.37)
Total Budget $69,376.14

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23 City of Pleasanton
Landscape Maintenance District No. 1995-1, Moller Ranch Engineer’s Report, Fiscal Year 2025-26 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 2025-26 are restored to the Resolution 97-84 assessment amount of rate of $675.63 per single-family equivalent (SFE) benefit unit.

City Engineer/Engineer of Work

By:

Adam M. Nelkie, License No. C78830

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24 City of Pleasanton
Landscape Maintenance District No. 1995-1, Moller Ranch Engineer’s Report, Fiscal Year 2025-26 Certificates Page

LANDSCAPE MAINTENANCE DISTRICT 1995-1, MOLLER RANCH CITY OF

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______________, 2025.

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

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25 City of Pleasanton
Landscape Maintenance District No. 1995-1, Moller Ranch Engineer’s Report, Fiscal Year 2025-26 Assessment Diagram
The Maintenance District includes all properties within the Moller 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 2025-26, and are incorporated herein by reference, and made a part of this Diagram and this Report.

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26 City of Pleasanton
Landscape Maintenance District No. 1995-1, Moller Ranch Engineer’s Report, Fiscal Year 2025-26 Assessment Roll FY 2025-26 - Moller Ranch LMD No. 1995-1

COLLECTION

ASSESSMENT ASSESSOR'S ASSESSMENT CHARGE
DIAGRAM NO. PARCEL NUMBER AMOUNT 0.017 TOTAL

1 941-1803-01 $675.63 $11.49 $687.12
2 941-1803-02 675.63 11.49 687.12
3 941-1803-03 675.63 11.49 687.12
4 941-1803-04 675.63 11.49 687.12
5 941-1803-05 675.63 11.49 687.12
6 941-1803-06 675.63 11.49 687.12
7 941-1803-07 675.63 11.49 687.12
8 941-1803-08 675.63 11.49 687.12
9 941-1803-09 675.63 11.49 687.12
10 941-1803-10 675.63 11.49 687.12
11 941-1803-11 675.63 11.49 687.12
12 941-1803-12 675.63 11.49 687.12
13 941-1803-13 675.63 11.49 687.12
14 941-1803-14 675.63 11.49 687.12
15 941-1803-15 675.63 11.49 687.12
16 941-1803-16 675.63 11.49 687.12
17 941-1803-17 675.63 11.49 687.12
18 941-1803-88 675.63 11.49 687.12
19 941-1803-87 675.63 11.49 687.12
20 941-1803-86 675.63 11.49 687.12
22 941-1803-85 675.63 11.49 687.12
22 941-1803-84 675.63 11.49 687.12
23 941-1803-83 675.63 11.49 687.12
24 941-1803-82 675.63 11.49 687.12
25 941-1803-81 675.63 11.49 687.12
26 941-1803-80 675.63 11.49 687.12
27 941-1803-79 675.63 11.49 687.12
28 941-1803-63 675.63 11.49 687.12
29 941-1803-64 675.63 11.49 687.12
30 941-1803-65 675.63 11.49 687.12
31 941-1803-66 675.63 11.49 687.12
32 941-1803-67 675.63 11.49 687.12
33 941-1803-68 675.63 11.49 687.12
34 941-1803-69 675.63 11.49 687.12
35 941-1803-70 675.63 11.49 687.12
36 941-1803-71 675.63 11.49 687.12
37 941-1803-72 675.63 11.49 687.12
38 941-1803-73 675.63 11.49 687.12
39 941-1803-74 675.63 11.49 687.12
40 941-1803-75 675.63 11.49 687.12
41 941-1803-76 675.63 11.49 687.12
42 941-1803-77 675.63 11.49 687.12
43 941-1803-78 675.63 11.49 687.12

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27 City of Pleasanton
Landscape Maintenance District No. 1995-1, Moller Ranch Engineer’s Report, Fiscal Year 2025-26 44 941-1803-18 675.63 11.49 687.12
45 941-1803-19 675.63 11.49 687.12
46 941-1803-20 675.63 11.49 687.12
47 941-1803-21 675.63 11.49 687.12
48 941-1803-22 675.63 11.49 687.12
49 941-1803-23 675.63 11.49 687.12
50 941-1803-24 675.63 11.49 687.12
51 941-1803-25 675.63 11.49 687.12
52 941-1803-26 675.63 11.49 687.12
53 941-1803-27 675.63 11.49 687.12
54 941-1803-28 675.63 11.49 687.12
55 941-1803-29 675.63 11.49 687.12
56 941-1803-30 675.63 11.49 687.12
57 941-1803-43 675.63 11.49 687.12
58 941-1803-44 675.63 11.49 687.12
59 941-1803-45 675.63 11.49 687.12
60 941-1803-46 675.63 11.49 687.12
61 941-1803-47 675.63 11.49 687.12
62 941-1803-48 675.63 11.49 687.12
63 941-1803-49 675.63 11.49 687.12
64 941-1803-50 675.63 11.49 687.12
65 941-1803-51 675.63 11.49 687.12
66 941-1803-52 675.63 11.49 687.12
67 941-1803-53 675.63 11.49 687.12
68 941-1803-54 675.63 11.49 687.12
69 941-1803-55 675.63 11.49 687.12
70 941-1803-56 675.63 11.49 687.12
71 941-1803-57-1 675.63 11.49 687.12
72 941-1803-58 675.63 11.49 687.12
73 941-1803-59 675.63 11.49 687.12
74 941-1803-60 675.63 11.49 687.12
75 941-1803-41 675.63 11.49 687.12
76 941-1803-40 675.63 11.49 687.12
77 941-1803-39 675.63 11.49 687.12
78 941-1803-38 675.63 11.49 687.12
79 941-1803-37 675.63 11.49 687.12
80 941-1803-36 675.63 11.49 687.12
81 941-1803-35 675.63 11.49 687.12
82 941-1803-34 675.63 11.49 687.12
83 941-1803-33 675.63 11.49 687.12
84 941-1803-32 675.63 11.49 687.12
85 941-1803-31 675.63 11.49 687.12
86 941-1802-02 675.63 11.49 687.12
87 941-1802-04 675.63 11.49 687.12
88 941-1802-05 675.63 11.49 687.12
89 941-1802-06 675.63 11.49 687.12
90 941-1802-07 675.63 11.49 687.12
91 941-1802-08 675.63 11.49 687.12
92 941-1802-09 675.63 11.49 687.12
93 941-1802-10 675.63 11.49 687.12

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28 City of Pleasanton
Landscape Maintenance District No. 1995-1, Moller Ranch Engineer’s Report, Fiscal Year 2025-26 94 941-1802-11 675.63 11.49 687.12
95 941-1802-12 675.63 11.49 687.12
96 941-1802-13 675.63 11.49 687.12
97 941-1802-14 675.63 11.49 687.12
98 941-1802-15 675.63 11.49 687.12
99 941-1802-16 675.63 11.49 687.12
Lot H -
(City) 941-1803-62
675.63
n/a 675.63
Lot I -
(City) 941-1801-02
675.63
n/a 675.63

101
TOTAL
ASSESSMENTS: $68,238.63 $1,137.51 $69,376.14

Figure 4 – FY 2024-25 Actual Costs and Revenues
2024-25 Project Expenditures

137 Moller Ranch
Item Budget Expenditures*
Anticipated
Remaining
Expenditures
Anticipated
Year-end
Balance
Installation and Maintenance
Basic Maintenance $24,360.00 $22,330.00 $2,030.00 $0.00 Extra Work** $25,000.00 $18,667.11 $4,000.00 $2,332.89
Water $17,000.00 $13,213.59 $5,375.07 -$1,588.66
Power $2,500.00 $2,519.14 $504.00 -$523.14
Weed Abatement $6,400.00 $0.00 $6,400.00 $0.00
Subtotal $75,260.00 $56,729.84 $18,309.07 $221.09

Incidental and Administrative
City of Pleasanton Assessment Administration $1,800.00 $1,831.04 $0.00 -$31.04 County Fees for Collection of Assessment $943.47 $943.47 $0.00 $0.00 Proposition 218-compliance process $40,000.00 $0.00 $2,000.00 $38,000.00 Subtotal $42,743.47 $2,774.51 $2,000.00 $37,968.96

Annual Assessment $57,557.00

Reserve
Starting Fund Balance (7/1/2024) $273,000.00
Budgeted Year-End Fund Balance $212,553.53
Anticipated Year-End Fund Balance $250,743.58

* Expenditures from July 1, 2024 to April 30, 2025
** Extra work included tree pruning, tree removal, and new mulch

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29 City of Pleasanton
Landscape Maintenance District No. 1995-1, Moller Ranch Engineer’s Report, Fiscal Year 2025-26

iii
iv

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Page 1 of 4 ends

Item #13

CITY COUNCIL AGENDA REPORT

June 17, 2025
Public Works - Operations Division

TITLE: APPROVE A MAINTENANCE AND TRADE SERVICES AGREEMENT WITH WEST COAST ARBORISTS, INC. FOR TREE MAINTENANCE, TREE

INVENTORY MANAGEMENT, AND ARBORIST CONSULTING SERVICES, WITH A TOTAL NOT-TO-EXCEED AMOUNT OF $2,522,000 FOR THE THREE-YEAR

TERM AND THE OPTION TO EXTEND THE AGREEMENT FOR TWO

ADDITIONAL ONE-YEAR TERMS, WITH A TOTAL CONTRACT AMOUNT NOT TO EXCEED FIVE YEARS AND $4,500,000

SUMMARY
The City’s urban forest is comprised of 23,722 public trees located in parks, medians, parking strips, and open spaces. Routine maintenance of the urban forest is key to keeping the City’s trees safe and healthy. The City is currently divided into 17 pruning districts, with the street trees pruned on an approximately five-year cycle. The current tree care and consulting services agreement will expire at the end of the current fiscal year. A Request for Proposals was formally advertised on April 14, 2025, seeking tree trimming, tree removal, inventory management, and arborist consulting services. After reviewing the five submitted proposals, West Coast Arborists, Inc. was selected as the most qualified contractor. West Coast Arborists, Inc. provides routine tree work, tree inventory software management, tree consulting services, and emergency tree work response. If approved, West Coast Arborists, Inc. will be awarded a three-year agreement in the not-to-exceed amount of $2,522,000 for tree trimming, tree removals, emergency tree work response, inventory management, and consulting services, with the option to extend the agreement for two additional one-year terms, not to exceed five years.

RECOMMENDATION

1. Approve a three-year maintenance and trade services agreement with West Coast Arborists, Inc. from July 1, 2025, to June 30, 2028, in the amount of $2,522,000 with a not-to-exceed amount of $800,000 for FY 2025/26, $840,000 for FY 2026/27, and $882,000 for FY 2027/28.

2. Authorize the City Manager to exercise two optional one-year agreement extensions, provided upon satisfactory performance at the end of the agreement’s three-year term, with an increase based on the Consumer Price Index (CPI) in the fourth and fifth years, with a total contract amount not to exceed five years and $4,500,000.

BACKGROUND
The City owns and maintains over 23,000 trees in its urban forest, located in city parks, medians, parking strips, facility landscapes, and open spaces. With such a robust urban forest, maintaining City trees requires contract assistance in addition to City staff.

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The scope of services for the recommended agreement includes tree pruning, tree removals, stump grinding, after-hours emergency tree work, documentation of tree work in a tree inventory management software program, tree inventory data collection, and arborist consulting services. Consistent tree maintenance is key to a safe and healthy urban forest. In addition to providing tree trimming services for the Parks Division, the City’s tree contractor provides services to the Engineering Division of Public Works. Out of the annual contract amount, approximately $50,000 is utilized by the Engineering Division for tree trimming to clear City- and privately-owned trees in preparation for the Annual Street Resurfacing project and the City’s Heritage Tree Program. The remaining budget is used to maintain approximately 23,000 trees located in parks, medians, parking strips, and facility landscapes.

As the current contract for services expires on June 30, 2025, a Request for Proposal was formally advertised on April 14, 2025, seeking tree trimming, tree removal, inventory management, and arborist consulting services. Five proposals were received for this project on April 30, 2025. The five bidders included West Coast Arborists, Inc., Community Tree Service, LLC, Mariposa Tree Management, Inc., The Davey Tree Expert Company, and The Professional Tree Care Company. Fees for the work ranged from $315 per hour to $420 per hour for basic crew rental and from $110 to $250 per tree for pruning a medium-sized tree.

After reviewing all proposals and interviewing the top three companies, staff determined that the proposal from West Coast Arborists, Inc., most fully met the criteria and qualifications for the project. West Coast Arborists, Inc. has extensive experience as they provide tree care services to over 350 California and Arizona municipalities and have the resources to address all tree care needs within the City. They also provide the best tree inventory software solution that catalogs tree maintenance history on a per-tree basis, and quantifies tree values and environmental benefits. Their consulting arborist was the most qualified and is an International Society of Arboriculture (ISA) Board Certified Master Arborist, ISA Tree Risk Assessment Qualified, American Society of Consulting Arborists (ASCA) Registered Consulting Arborist, and has a California Department of Pesticide Regulation Qualified Applicators License (QAL).

West Coast Arborists, Inc. is also the best equipped to respond to emergency tree calls and can respond with resources from their Stockton, San Jose, or Pinole branches. No other company is as well-positioned in the Bay Area to respond to emergency tree issues. In

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addition, West Coast Arborists, Inc. provided a competitive basic crew rental of $315 per hour and a competitive rate of $149 per tree regardless of tree size. The contractor will perform the bulk of the work using the crew rental rate to ensure that each tree is properly pruned and receives an adequate amount of pruning at the time it's serviced. Billing for services can be switched to a per-tree rate as deemed necessary or for special projects. Consulting arborist services comprise only approximately 2 percent (2%) of the total historical invoicing.

In May 2000, the City selected West Coast Arborist, Inc. to complete its annual tree trimming and removal services contract and implement its tree inventory system. Staff have been very satisfied with their performance over the last 25 years.

DISCUSSION
The City recognizes that trees offer numerous environmental, social, and economic benefits, like providing shade and relief from hot weather, creating habitat for wildlife, improving air and water quality, enhancing mental health, supporting physically active communities, reducing energy costs, and increasing property values. Trees provide environmental benefits that hold real economic value for the City. These benefits contribute directly to the community’s quality of life and livability. Annually, the City’s trees sequester 333 tons of carbon dioxide, help avoid the runoff of 1.4 million gallons of water, and remove 5.3 tons of air pollution. For every dollar that the City’s urban forestry program spends to maintain and manage public trees, the community receives an equivalent of $1.24 in environmental benefits, showing that investment in the urban forest yields a positive return for community members (City of Pleasanton Draft Urban Forest Master Plan, December 2024).

EQUITY AND SUSTAINABILITY
By continuing to implement best management practices for urban forestry, the city’s urban forest will continue to provide many benefits for Pleasanton's diverse community and is one of the City’s most significant assets, with an estimated replacement value of $99.4 million.

OUTREACH
Not applicable, as this item is a routine matter of City business.

STRATEGIC PLAN ALIGNMENT
Approval of this action advances the Citywide ONE Pleasanton strategic plan goal of Investing in Our Environment, Strategy 7 – Continue to invest in parks, bicycle and pedestrian infrastructure, and public art to improve traffic safety, promote climate resilience, and increase equitable access to cultural and recreational opportunities.

FISCAL IMPACT
Funding for the agreement is primarily allocated in the General Fund (001), Parks Maintenance Division Operating Budget (00140400-430107). A portion of the funding for this agreement will also come from CIP Fund 160 for street resurfacing and slurry sealing. The proposed three- year agreement with West Coast Arborist, Inc. is for a not-to-exceed amount of $2,522,000 with a cumulative not-to-exceed amount of $800,000 for FY 2025/26, $840,000 for FY 2026/27, and $882,000 for FY 2027/28. If extended by Amendment, the cost of each one-year term may increase only by the change in the Consumer Price Index for the San Francisco- Oakland-San Jose Metropolitan Area (all items index; all urban consumers) for the twelve (12) month period ending in April each year as published by the Bureau of Labor Statistics, U.S.

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Department of Labor, with a total contract amount not to exceed five years and $4,500,000.

Prepared by: Submitted by: Approved by:

Tamara Baptista, Assistant
Dir. of Public Works -
Operations & Maintenance
Siew-Chin Yeong, Director of Public
Works

Gerry Beaudin, City
Manager

Attachments:

1. West Coast Arborist, Inc. Maintenance and Trade Services Agreement

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MAINTENANCE AND TRADE SERVICES AGREEMENT

TREE CARE AND CONSULTING SERVICES
RFP #PWD 25-301

THIS AGREEMENT is made and entered into this first day of July 2025 between West Coast Arborist, Inc. ("Contractor"), a California Corporation, whose address is 2200 E. Via Burton, Anaheim CA 92806, and the CITY OF PLEASANTON, a municipal corporation ("City").

RECITALS

A. Contractor is qualified and experienced in providing annual tree trimming, stump grinding and removal, inventory and other Arborist and Consulting services, based on submitted proposal in response to the City of Pleasanton’s Request for Proposals (RFP) #PWD 25.301 as set forth in Exhibit A of this Agreement.

B. City finds it necessary and advisable to obtain work or services from Contractor on both a scheduled basis as set forth in RFP #PWD 25.301, as well as on an as-needed basis for emergency tree work and potential unscheduled maintenance or improvements for the City tree inventory, also described therein.

NOW THEREFORE, in consideration of the mutual covenants and conditions in this Agreement, City and Contractor agree as follows:

1. Term. The term of this Agreement commences on July 1, 2025, and will expire on June 30, 2028 unless the parties agree to extend the Agreement, by Amendment, for an additional two (2), one-year terms, not to exceed five (5) years total for this Agreement. If extended by Amendment, the cost of each one-year term may increase only by the change in the consumer price index for the San Francisco-Oakland-San Jose Metropolitan Area (all items index; all urban consumers) for the twelve (12) month period ending in April each year as published by the Bureau of Labor Statistics, U.S. Department of Labor.

For example, for a first extension of the term of the Agreement for July 1, 2028, to June 30, 2029, the change in the above-referenced CPI for May 1, 2027,to April 30, 2028, shall be used to adjust Contractor’s Year 4 unit price / hourly rate / cost per hour set forth in Exhibit B. And, for a second extension of the term of the Agreement for July 1, 2029, to June 30, 2030, the change in the above-referenced CPI for May 1, 2028, to April 30, 2029, shall be used to cumulatively adjust Contractor’s unit price / hourly rate / cost per hour from the first extension.

2. Services to be performed . Contractor shall perform, or cause to be performed, the work or services described in Exhibit A.

The work will generally consist of tree pruning and removal, stump grinding, inventory and data collection and related activities as described in the following documents of RFP PWD 25.301.

A. Plans and specifications entitled Tree Care and Consulting Services and Addenda thereto if any.

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B. Contract Amendments approved by the City Council and/or City Manager.

C. The proposal submitted to the City by the Contractor.

3. Compensation. Total compensation for the first three years of this Agreement shall not exceed $2,522,000, of which, the total for each year shall not exceed:

Year 1 - $800,000
Year 2 - $840,000
Year 3 - $882,000

For the fourth and subsequent fifth year of the Agreement if mutually agreed upon to extend the term, the not to exceed amount shall increase by the by the change in the consumer price index for the San Francisco-Oakland-San Jose Metropolitan Area (all items index; all urban consumers) for the twelve-month period ending in April each year as published by the Bureau of Labor Statistics, U.S. Department of Labor. The total five year compensation shall not exceed $4.5 million.

City shall pay Contractor for all work performed based on the bid proposal RFP PWD 25.301, in Exhibit A.

4. Method of Payment.

Payment shall be made within thirty (30) days of receipt of Contractor’s invoice and approval by City. Contractor must include a monthly, or more frequent basis, a report of specific trees pruned, removed, stumps removed, trees added to the inventory, and emergency work. This report should accompany each invoice submitted for payment. It is essential that this report is complete and approved to facilitate the timely processing and remittance of payment.

Billing for tree pruning or tree removal can be changed from an hourly basis to a per tree basis based on diameter at standard height (DSH) by the Parks Division Manager at any time.

5. Indemnification. Contractor shall hold harmless, defend, and indemnify the City, its officers, agents and employees (“Indemnities”), against any and all claims, costs, demands, causes of action, suits, losses, expenses, attorney’s fees, or liability, arising from or in any manner related to Contractor’s (includes Contractor’s employees, agents, or subcontractors) negligent act or omission, whether alleged or actual, regarding the work or services performed or caused to be performed pursuant to this Agreement and any amendments thereto. Contractor shall not, however, be obligated to indemnify Indemnities from claims arising from the sole negligence or willful misconduct of Indemnities . This indemnification includes any claim that the materials or equipment provided under this Agreement, or any tool, article or process used, constitutes an infringement of any patent issued by the United States. This indemnification provision shall survive termination or cancellation of the Agreement.

6. Insurance. During the term of this Agreement, Contractor shall maintain at its own cost and expense the following insurance coverage with insurers with an A.M. Best’s rating of no less than A:VII. Contractor shall have the obligation to furnish City, as additional insured, the minimum coverages identified below, or such greater or broader coverage for City, if available in the Contractor’s policies:

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a. General Liability and Bodily Injury Insurance. C ommercial general liability insurance with limits of at least $ 2,000,000 combined limit for bodily injury and property damage that provides that the City, its officers, employees and agents are named additional insured’s under the policy as evidenced by an additional insured endorsement satisfactory to the City Attorney.

The policy shall further state in writing either on the Certificate of Insurance or attached rider that this insurance will operate as primary insurance for work performed by Contractor and its subcontractors, and that no other insurance effected by City or other named insured will be called on to cover a loss.

b. Automobile Liability Insurance. Automobile liability insurance with limits not less than $2,000,000 per person/per occurrence.

c. Workers' Compensation Insurance. Workers' Compensation Insurance for all of Contractor's employees shall be in strict compliance with State laws, including a waiver of subrogation and Employer’s Liability Insurance with limits of at least $1,000,000.

For work or services deemed public works, by signing this Agreement, Contractor is certifying, pursuant to Section 1861 of the California Labor Code, that: "I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work of this Contract."

d. Certificate of Insurance. Contractor shall file a certificate of insurance with the City prior to the City’s execution of this Agreement, and prior to engaging in any operation or activity set forth in this Agreement. The Certificate of Insurance shall provide in writing that the insurance afforded by this Certificate shall not be suspended, voided, canceled, reduced in coverage or in limits without providing notice to the City in accordance with California Insurance Code section 677.2 which requires the notice of cancellation to: 1) include the effective date of the cancellation; 2) include the reasons for the cancellation; and 3) be given at least 30 days prior to the effective date of the cancellation, except that in the case of cancellation for nonpayment of premiums or for fraud, the notice shall be given no less than 10 days prior to the effective date of the cancellation . Notice shall be sent by certified mail, return receipt requested. In addition, the insured shall provide thirty (30) days prior written notice to the City of any cancellation, suspension, reduction of coverage or in limits, or voiding of the insurance coverage required by this agreement. The City reserves the right to require complete certified copies of policies.

e. Subcontractors. Contractor shall include all subcontractors as insured under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverage’s for subcontractors shall be subject to all of the requirements stated in this Agreement, including but not limited to naming additional insureds.

f. Waiver of Subrogation. The insurer agrees to waive all rights of subrogation against the City, its officers, employees and agents.

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g. Defense Costs. Coverage shall be provided on a “pay on behalf of” basis, with defense costs payable in addition to policy limits. There shall be no cross-liability exclusions.

7. Independent Contractor. The Contractor is an independent contractor retained by the City. All personnel employed by the Contractor, including subcontractors, and personnel of subcontractors, are not and shall not be employees of the City.

8. Contractor’s Warranty. Contractor shall bear the risk of loss or damage to any goods associated with the services until delivered to and accepted by City. Contractor further warrants that all work done and goods provided under this Agreement shall: a) meet all conditions of the Agreement; b) shall be free from all defects in design, material and workmanship; and 3) shall be fit for the purposes intended. If any defects occur within the 12 months following acceptance, Contractor shall be solely responsible for the correction of those defects.

9. Labor Code/Prevailing Wages. The work performed under this Agreement is a “public work” and prevailing wage laws shall apply. No less than the general prevailing rate of per diem wages, and not less than the general prevailing rate of per diem wages for holidays and overtime work, for each craft, classification or type of worker needed to execute the work under this Agreement shall be paid to all workers, laborers and mechanics, electricians, employed in the execution of the work by the Contractor or any subcontractor doing or contracting to do any part of the work. The appropriate determination of the Director of the California Department of Industrial Relations shall be filed at the City Clerk’s Office and available for inspection. Contractor shall post, at each job site, a copy of the prevailing rate of per diem wages.

To the extent applicable, Contractor shall comply with all requirements of the California Labor Code, including but not limited to, Labor Code sections: 1773.2 (regarding posting wage determinations at each job site); section 1776 (regarding the certificat ion, maintenance, and availability for inspection of payroll records); section 1777.5 (regarding employment of apprentices); section 1810 (regarding a legal day’s work as 8 hours of labor); and section 1775 (regarding penalties for violations). The Contrac tor shall forfeit fifty dollars ($50.00) for each calendar day or portion thereof for each worker paid less than the stipulated prevailing rates for any public work done under the Agreement by it or by any subcontractor under Contractor.

10. Notices. All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and conclusively shall be deemed served when delivered personally or on the second business day after the deposit thereof in the United States Mail, postage prepaid, registered or certified, addressed as hereinafter provided.

To Contractor: West Coast Arborists To City: City Manager 390 Martin Avenue City of Pleasanton
Santa Clara, CA 95050 P.O. Box 520
Pleasanton, CA 94566

11. Conflict of Interest. In accepting this Agreement, Contractor covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would

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conflict in any manner or degree with the performance of this Agreement. Contractor further covenants that, in the performance of this Agreement, it will not employ any person having such an interest. Contractor certifies that no City officer, employee, or authorized representative has any financial interest in the business of Contractor and that no person associated with Contractor has any interest, direct or indirect, which could conflict with the faithful performance of this Agreement. Contractor agrees to advise City if any conflicts arise.

12. Miscellaneous Provisions.

a. City may terminate this Agreement at any time , including failure to adhere to OSHA Safety Requirements, by mailing a notice to Contractor. Contractor shall be paid for that portion of work or services already completed by Contractor as approved by City. b. Contractor acknowledges that time is of the essence regarding the performance of this Agreement.

c. Contractor shall not assign or transfer this Agreement.

d. If either City or Contractor waives a breach of this Agreement, such waiver shall not constitute a waiver of other or succeeding breaches of this Agreement.

e. This Agreement may only be modified by a writing signed by the authorized representative of both parties.

f. Contractor covenants that it has obtained and will keep in effect during the term of the Agreement all certificates, licenses, including a City Business License, permits or the like required by any federal, state or local regulatory agency in order to perf orm the work under this Agreement.

g. Contractor shall comply with all federal, state and local laws, regulations and rules, including but not limited to applicable safety and environmental laws. Contractor shall bear full and exclusive responsibility for any release of hazardous or non-hazardous substances and disposal of hazardous wastes.

h. The Contractor will permit the City to audit, examine and make copies of all contracts, invoices, payrolls and other documents or data relating to this Agreement. Such records shall be maintained for three years from the date of final payment under this Agreement.

i. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement.  Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature c omplying with U.S. federal E -Sign Act of 2000 (15 U.S. Code §7001 et seq.), California Uniform Electronic Transactions Act (Cal. Civil Code §1633.1 et seq.), or other applicable law) or other transmission method, and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

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j. This Agreement shall be governed by the laws of the State of California, with venue for any action under this Agreement in Alameda County, California.

k. This Agreement constitutes the entire understanding of the parties.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written.

CITY OF PLEASANTON CONTRACTOR –

_____________________________ By: __________________________ Gerry Beaudin, City Manager Signature

__________________________
Print name

ATTEST: Title: __________________________

____________________________ [If Contractor is a corporation, signatures must Jocelyn Kwong, City Clerk comply with California Corporations Code §313]

APPROVED AS TO FORM: _____________________________
Signature

__________________________ __________________________
Daniel Sodergren, City Attorney Print name

Title: __________________________

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EXHIBIT A – TREE CARE AND CONSULTANT SERVICES
SCOPE OF SERVICES – RFP 25.301

Contractor to provide tree care services and arboricultural consulting services throughout the City.

City Project Manager - Project Manager will be the Parks Division Manager or their Designees.

GENERAL
All work to be performed shall be in accordance with the City of Pleasanton Standard Specifications and Details. July 2024, ANSI Z133-2017 American National Standards for Arboricultural Operations – Safety Requirements (or current edition), ANSI A300 Tree Care Standards, and all ISA Pruning Best Management Practices Third Edition (or current edition) and shall be overseen by the Parks Division Manager.

Inspection by Parks Division Manager or their designee shall be made during normal City operating hours, unless otherwise arranged. The progress and standard of quality of work to be accomplished shall be to the degree reasonably acceptable to the Parks Division Manager. In the event the Parks Division Manager determines the Contractor's work is unsatisfactory, the Contractor will be required to perform the additional work at no cost to the City.

Contractor’s License Classification and ISA Certification As identified by the Contractors State License Board, the City has determined that at the time of bid, the Contractor shall possess a D -49 Tree Service Contractor license and maintain a valid license during the term of this agreement.

The contractor shall have an International Society of Arboriculture (ISA) Certified Arborist on staff.

Safety
All OSHA Safety Requirements must be adhered to by the Contractor and/or any subcontractors while on-site.

All arboricultural operations shall follow ANSI Z133-2017 American National Standards for Arboricultural Operations – Safety Requirements (or current addition) guidelines.

All equipment and tools shall meet and be maintained as required in ANS Z-133.1-2017 (or current edition)

Storage Facility
It is the Contractor's responsibility to provide a storage facility. The City does not provide facilities or storage space for the Contractor's use.

Travel Time

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The City will not pay for travel time. Any Contractor desiring to cover these costs will need to incorporate them in the applicable hourly rates.

Uniforms
The contractor’s employee(s) shall be identified at all times by a Company uniform or a safety vest worn outside other clothing with the Company name clearly displayed. Vehicles will have a Company sign clearly displayed. Uniform to include all required hi-visibility apparel (safety vest etc.).

Permits
The contractor will be responsible for obtaining all necessary permits to perform work (encroachment permits, etc.). Before beginning work, all stump grinding and tree planting locations shall be surveyed for underground utilities (USA North 811). Any identified utility conflicts will be discussed with the Parks Division Manager before proceeding with any ground disturbance work.

Traffic Control and Vehicle Access
When working in street locations and transporting equipment on public streets, the Contractor shall comply with the California State Vehicle Code. Contractors must provide all safety cones, sign boards, arrow boards, and other appropriate measures and equipment as prescribed by the California Manual on Uniform Traffic Control Devices (CA-MUTCD) for traffic control.

Contractor shall conduct its operations to cause the least possible obstruction and inconvenience to public traffic. To the greatest extent possible, all traffic shall be permitted to pass through the work area. For work requiring traffic control, the Contractor must submit a traffic control plan to the City of Pleasanton Public Works Department for approval 72 hours before the scheduled work.

When working in a park, vehicle access is limited to the sidewalk. The contractor shall not drive vehicles on the turf, basketball courts, or other landscaped or hardscaped area(s) unless the Parks Division Manager supplies written permission.

• At park locations where sidewalk access is permitted, the Contractor must temporarily remove a bollard for access. Upon leaving each park site, the Contractor shall replace all the bollards that were removed.
• The Contractor must drive slowly and carefully while performing any associated work in park locations and yield to park users
• All vehicles utilized by the Contractor shall have wording which clearly identifies the Contractor

Equipment/Vehicles
Standard tree pruning equipment shall always be used and maintained in satisfactory condition and in compliance with State and Federal/OSHA regulations. Equipment unsuitable for producing the required work quality should not be permitted on the job site. All tools shall be clean, sharp, and in proper working order and shall be checked for safety before each job. All trucks, chippers, and other heavy equipment shall be in good operating condition and compliant with all applicable laws and regulations. All vehicles and trucks shall be equipped with a spill kit. All cars, trucks, and equipment shall be serviced off-site.

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Pleasanton City CouncilJune 17, 2025

Pleasanton City Council
June 17, 2025