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PAGE 6 will require the City to reduce landscape maintenance and water use so that maintenance costs remain below assessments. An increase in the annual assessment will be necessary in order to meet the maintenance standards of the District into the future. If additional funding from a new or increased assessment is not implemented, the City will be forced to continue to reduce maintenance and postpone facilities upgrades, resulting in a continuing deterioration of the grounds and facilities. ENGINEER'S REPORT AND CONTINUATION OF ASSESSMENTS Each year for which the assessments will be continued, the City Council must direct the preparation of an Engineer's Report, budgets and proposed assessments for the upcoming fiscal year. After the Engineer's Report is completed, the City Council may preliminarily approve the Engineer's Report and proposed assessments, and establish the date for a public hearing on the continuation of the assessments. This Report was prepared pursuant to the direction of the City Council. This Engineer's Report ("Report") was prepared to establish the budget for the continued maintenance, improvements, and services ("Improvements") that would be funded by the proposed fiscal year 2020-21 assessments, determine the benefits received by property from the Improvements, and the method of assessment apportionment to lots and parcels within the Maintenance District. This Report and the proposed assessments have been made pursuant to the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code("Act") and Article XIIID of the California Constitution ("Article"). If the City Council approves this Engineer's Report and the continuation of the assessments by resolution, a notice of public hearing must be published in a local paper at least 10 days prior to the date of the public hearing. The resolution preliminarily approving the Engineer's Report and establishing the date for a public hearing is used for this notice. Following the minimum 10-day time period after publishing the notice, a public hearing is held for the purpose of allowing public testimony about the proposed continuation of the assessments. This hearing is currently scheduled for June 16, 2020. At this hearing, the City Council would consider approval of a resolution confirming the continuation of the assessments for fiscal year 2020-21. 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 2020-21. 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 Gras of PLEASAaTO, LIGHTING&LANDSCAPE MAINTENANCE DISTRICT No.1993-1,WINDSOR SClConsultingGroup ENGINEER'S REPORT,FISCAL YEAR 2020-21