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Moller Ranch - The Engineer's Report for the Moller Ranch CHAD concludes that funding is needed for the following special services for properties within this CHAD: excavation and re-compaction of shallow slope failures, installation of additional subdrain systems, repair of surface drainage improvements, construction of additional surface drainage improvements, restoration of eroded areas and/or removal of siltation deposits, site inspection, preparation of the Engineer's Report and City administrative costs. This year, the parcel assessment is proposed to remain the same as last year, $104. With 100 properties within the CHAD, including the City-owned water reservoir site, this year's total assessment will remain at $10,400. Currently, the Moller Ranch CHAD has a fund balance of $89,308 for the repair of landslides, hillside slopes and drainage facilities, as may be necessary in the future, based on estimates of significant earth movement events discussed in the original Plan of Control for this CHAD. Laurel Creek Estates - The Engineer's Report for the Laurel Creek Estates CHAD concludes that funding is needed for the following special services for properties within this CHAD: repair and maintenance of surface and subsurface drainage facilities, slope stabilization, erosion control, routine maintenance, site inspection, preparation of the Engineer's Report and City administrative costs. This year, the parcel assessment is proposed to remain the same as last year, $362. There are 121 properties within the CHAD (102 within Laurel Creek Estates, including the two City-owned water reservoirs, seven within Oak Hill Estates, and 12 within Kolb Ranch Estates). This year's total assessment will remain at $43,802. Currently, the Laurel Creek Estates CHAD has a fund reserve of $570,982. The reserve assumes the potential for a significant repair of the hillside slopes once every ten years, and staff experience with the cost of other significant repairs in this area west of Foothill Road makes this reserve amount appropriate. Land owner concerns about the reserve balance are discussed in the Public Comment section below. Lemoine Ranch Estates - The Engineer's Report for the Lemoine Ranch Estates CHAD concludes that funding is needed for the following special services for properties within this CHAD: inspection and repair of the surface drainage improvements such as the concrete v-ditches and storm drain outlets, including detection and mitigation of potential geologic hazards, slope stabilization, erosion control, routine maintenance, site inspection, preparation of the Engineer's Report and City administrative costs. This year, the parcel assessment is proposed to remain the same as last year, $603. There are no City-owned parcels within this CHAD. With 12 properties within the CHAD, this year's total assessment will remain at $7,236. The Lemoine Ranch Estates CHAD will have a fund balance of $47,301. (The developer was required to fund the CHAD in the amount of$1,000 per lot at the time of the final map approval.) As noted above, the proposed assessments fund geologic monitoring and related maintenance services which provide a special benefit to the properties within the GHADs that do not benefit the public at large. Combined with the fact that the proposed assessments are not higher than the previous year's assessments, and that the GHADs were formed by consent of all original property owners (the developers), the current proposed assessments are not subject to a Prop. 218 vote of present property owners. Page :3 of 4