It is recommended that the City Council:
1. Adopt the following resolutions:
2. Following adoption of Resolutions Nos. 2026-60, 2026-61, and 2026-62, approve the Preliminary Consolidated Fiscal Year 2026-27 Engineer’s Report for Landscape Maintenance Districts 4, 6 & 7.

3. Following approval of the Preliminary Consolidated Fiscal Year 2026-27 Engineer’s Report for Landscape Maintenance Districts 4, 6 & 7, adopt the following resolutions:

The Landscaping and Lighting Act of 1972 (California Streets and Highways Code section 22500 et seq.) (the "Act") specifies the procedures for renewal of landscape maintenance districts.

Landscape Maintenance District No. 4 (“LMD4”) was established in 1975. This district is in the southeasterly part of the City. The assessments collected are used to maintain landscaping, irrigation, hardscape (e.g., sidewalks, walls, etc.), and area lighting on 130 acres of public open space within the boundaries of the district. To encourage innovative housing types and neighborhood designs and to preserve the ridge lines in the San Jose Hills, this area was originally developed with relatively narrow street rights-of-way and small lot sizes. The resulting surplus land was converted to landscaped slope areas and park-like "green belt" areas containing walkways, landscaping, and lighting.

Landscape Maintenance District No. 6 (“LMD6”) was established in 1980 at the request of the owner of the development in lieu of forming a Homeowners’ Association. LMD6 is located in the easterly end of the City known as South Hills. The funds collected by LMD6 are used to maintain landscaping and irrigation in public open space areas within its boundaries. LMD6 contains 238 single-family dwellings, approximately 12 acres of landscaped and irrigated areas, and approximately 65 acres of natural area.

Landscape Maintenance District No. 7 (“LMD7”) was established in 1980 at the request of the owner of the development in lieu of forming a Homeowners' Association. LMD7 is generally located at the easterly end of the City. The funds collected by the district are used to maintain landscaping and irrigation in public open space areas within its boundaries. Currently, LMD7 contains 372 improved and 8 unimproved single-family residential parcels. When development is 100 percent complete, LMD7 will contain 380 developed single-family residential parcels, 25 acres of landscaped and irrigated area, and 105 acres of natural area.

The initial step of the renewal process is to adopt the resolution ordering the Engineer’s Report. The assessment engineer, Webb Municipal Finance, has prepared a Preliminary Consolidated Report for LMD4, LMD6 and LMD7 which includes plans and specifications for improvements, estimated costs, assessment diagrams, and assessments spread to cover the estimated costs for each district. The report was prepared in accordance with the Act.

The next step in the renewal process is the approval of the Engineer’s Report and adoption of the Resolution of Intention concerning the levy and collection of assessments for LMD4, LMD6 and LMD7. The Act also requires the Resolution of Intention to give notice of, and fix a time and place for, a public hearing regarding the proposed assessments. Pursuant to the Act, the public hearing must be held at a regular meeting before August 10th. Staff recommends holding the required public hearing on July 21, 2026. At the public hearing, the City Council will consider all written and oral comments regarding the level of assessments, and the maintenance and capital improvement work proposed for LMD4, LMD6 and LMD7. The renewal process requires that a public notice, in the form of the Resolution of Intention, be posted and published in a locally circulated newspaper, but does not require notices to be mailed to each resident. Upon the conclusion of the hearing, the City Council should adopt a resolution confirming the diagram and assessment levy, either as proposed or as changed by the City Council.

Staff recommends that the assessment rates be maintained at their current levels for Fiscal Year 2026-27. The annual assessment rates for LMD4 will be maintained at $49.16 for commercial units in A1 zone, $77.89 for condominium units in A2 zone, $49.33 for condominium/apartment units in A3 zone, $232.48 for condominium units in A4 zone, $260.98 for single-family residential in A5 zone, $289.99 for single-family residential in A6 zone, $348.02 for a single dwelling unit in A7 zone, $386.66 for a fourplex unit in the A8 zone, and $464 for a duplex unit in the A9 zone. The annual assessment rates for LMD6 will be maintained at $650 per lot annually ($54.16 per month). The annual assessment rates for LMD7 will be maintained at $464.06 per developed lot and $139.22 per undeveloped lot.

In FY 23-24, the City entered into a new landscaping agreement that increased the scope of services to include the entire hillside that will be trimmed to a maximum of 4 feet in height. This work continued through FY 24-25, FY 25-26 and will be maintained for FY 26-27. 

If determined that rates are to be increased in the future, it would require a vote by the affected property owners. Pending completion of further analysis, this report recommends that assessment rates be maintained at their current levels for FY 2026-27. 


 

The City Attorney has reviewed the resolutions and approved them as to form.

The City Council has the following options: 
1.    Approve Staff's recommendation; or
2.    Provide alternative direction.
 

This item is statutorily exempt from the provisions of the California Environmental Quality Act (“CEQA”) pursuant to Section 15273 (Rates, Tolls, Fares, and Charges) and generally exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines in that it consists of the continuing maintenance and operations of landscaping and irrigation within the districts, which does not have the potential for causing a significant effect on the environment.