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BACKGROUND The Landscaping and Lighting Act of 1972 ("the Act") authorizes local agencies to impose an annual assessment on real property benefiting from improvements in order to pay for constructing and maintaining lighting and landscaping improvements. The five LMDs maintained by the City: 1984-1 (Ponderosa-Del Prado), 1993-1 (Windsor), 1993-2 (Bonde Ranch), 1994-1 (Oak Tree Farm, and 1995-1 (Moller Ranch), were formed under the authority provided by the Act. The year of formation is contained within the title of each LMD as listed above. Assessment amounts in each district have not changed in any of the districts since formation. When considering increased costs of maintenance in general, and the eventual need for capital replacement of things such as the irrigation systems or decorative fencing and lighting, every district is underfunded, with Windsor and Bonde Ranch experiencing the most difficult funding challenges. Proposition 218, commonly referred to as the "Right to Vote on Taxes Act," was passed by California voters in November 1996. The Proposition limits the authority of local governments (including cities, counties, special districts and school districts) to impose taxes and property related assessments, fees, and charges. It also establishes procedures for implementing annual assessments which include benefit assessments, special assessments, and maintenance assessments, etc. For Landscaping and Lighting Maintenance Districts, procedures include a requirement that the City develop an engineering report which identifies the special benefits that will accrue to each individual property as a result of the assessment. Further, subject to certain exceptions, it establishes that the majority of the property owners in the assessment district must vote in favor of any proposed assessment increase for it to be implemented. The City has managed the districts to this point by using more drought tolerate plants, reducing water use, and patching together irrigation systems. Capital replacements have generally been deferred. While this has allowed the districts to operate without increasing assessments, it is not sustainable. Residents within the districts have expressed concerns that maintenance of the LMD improvements are not meeting their expectations. DISCUSSION The process to increase the assessment amount for any of the districts must follow the requirements of Proposition 218. A consultant with experience following those requirements is necessary to ensure the process is correct. The initial contract with SCI was to update the Engineer's Reports for tax year 2020 to ensure the reports were compliant with all requirements of Proposition 218. That effort was achieved with the submittal and approval of the Engineer's Reports for the five LMDs in June 2019 for tax year 2020. The proposed amendment to the professional services agreement with SCI includes the preparation of the tax year 2021 Engineer's Reports and assists staff in preparing and carrying out a vote in the two LMDs with the greatest funding challenges: Windsor and Bonde Ranch. Page 2 of 3