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BACKGROUND The Bonde Ranch Landscape and Lighting Maintenance District was created in 1993 under the laws of the Landscaping and Lighting Act of 1972 (§22500) to address the maintenance of common areas for the Bonde Ranch development In 1996, shortly after the formation of the District, California voters approved Proposition 218 Proposition 218 required that property owners receive written notification of proposed assessment increases, that a public hearing be held, and that a majority vote be required to approve any increase to assessments This has heavily impacted the Bonde Ranch Landscape and Lighting Maintenance District as property assessments to maintain the District have not increased since the formation of the District This has led to a funding shortfall for maintenance Addressing the need for the pruning and removal of these trees has been an ongoing maintenance challenge for the City With the proposed loan, the trees can be properly maintained to significantly reduce risk to the adjacent properties both within and outside of the Bonde Ranch Landscape and Lighting Maintenance District The City currently collects an annual fee of $257 22 from 102 parcels and $252 91 from one parcel in the District to pay for landscape maintenance ($26,489 35 annually) The areas of maintenance are as indicated on the attached map DISCUSSION The Eucalyptus grove existed prior to the approval of the Bonde Ranch development As the trees are mature specimens very close in proximity to the residential lots, the City maintains a higher standard of care for these particular trees to limit risk involved with limb failure or fallen trees The trees are routinely assessed every few years to determine risk and potential failures, the most recent assessment occurred in March of 2016 Since obtaining the assessment report, the City has removed and/or pruned four of the highest risk trees The level of risk of the remaining trees requires much more maintenance than the District currently has funding to pay for A comprehensive quote to address the remaining risk associated with the trees was provided by the City's as- needed tree service contractor, West Coast Arbonsts, for the amount of $127,813 40 Since these trees are maintained as part of the underfunded Bonde Ranch Landscape and Lighting Maintenance District, a loan from the City's Park and Median Renovation Fund is required to pay for the proper maintenance of these trees The City is working to address the funding shortfall for the District This will involve meeting with the property owners, reviewing maintenance and expectations, and a Proposition 218 compliant vote if it is determined that assessments should be increased Page 2 of 3