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There is minimal fiscal impact to the City relating to the administration of the Districts. As part of the assessment, the City collects an annual fee to administer the districts as well as the maintenance contracts. A portion of this fee, along with interest earnings and delinquency penalties, is available to reimburse the City for staff time. 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 assessments are collected by Alameda County as part of the annual tax bill. At the meeting of May 15, 2007, the City Council approved the Engineer's Report relating to each respective assessment district and scheduled a public hearing in conformance with the requirements of the State of California Landscaping and Lighting Act of 1972. A copy of that report is attached for reference. DISCUSSION As required by the Landscaping and Lighting Act of 1972, the City must levy an annual assessment to all parcels benefited by their Landscaping District. The resolutions adopted at the meeting of May 15, 2007, authorized the City Clerk to give the required notice of public hearing regarding the levy of proposed annual assessments for the respective districts. At the meeting of June 19, 2007, the City Council will open the hearing to receive public comments, close the hearing, and adopt a resolution confirming the Engineer's Report and levying assessments for each of the Districts for fiscal year 2007-08. Landscaping and Lighting District 1984-1, Ponderosa-Del Prado Maintenance in this District includes masonry walls, trees, shrubbery, groundcover and irrigation systems along Paseo Santa Cruz between Corte Pacifica and Paseo Catalina. The assessment for the coming year for District 1984-1 (Ponderosa-Del Prado) will be the same as last year, $16.90 per parcel per year. With a total of 344 parcels in the district (one of these aCity-owned parcel, Del Prado Park), this year's total assessment will be $5,813. This amount will be sufficient to fund the maintenance of all common areas along Paseo Santa Cruz including water and electrical costs, County administration fees, City administration fees, and sets aside in a replacement fund sufficient reserves for the long-term replacement of plantings, irrigation systems, masonry walls, and other District improvements. The City bid the District maintenance project in June 2005, and received three (3) bids. The lowest responsible bidder was Del Conte's Landscaping, Inc. of Fremont with a bid of $8,256 for the annual maintenance. This included the cost of maintenance for the "general benefit" area along the arroyo from Corte de Flores to Corte Monterey ($4,974) that is the City's fiscal responsibility. To date, the contractor has performed all of the specified maintenance work in a satisfactory manner. The City has chosen to extend the contract for an additional year as provided under their contract. The contract Page 2 of 5