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CITY MANAGER'S TRANSMITTAL LETTER Seaport Boulevard Landscape Maintenance District City of Redwood City County of San Mateo, State of California The City Manager of the City of Redwood City, County of San Mateo, State of California, makes this report, as directed by the City Council, pursuant to Section 18.104 of Article XII of Chapter 18 of the Code of the City of Redwood City, as amended. Accompanying this Report is an Engineer's Report, prepared in accordance with Article XIII D of the California Constitution, enacted by approval of Proposition No. 218 in the November 5, 1996 statewide general election. The Seaport Boulevard Landscape Maintenance District (the "District") was established in July 1987 to pay for the cost and expense of maintaining and operating certain public improvements within the District that will be of benefit to parcels within the District. In November 1996 California voters amended the California Constitution with the passage of Proposition No. 218. Pursuant to Proposition No. 218, as of July 1, 1997, assessments must be approved by a majority vote protest procedure. Assessments were last approved by property owners in 2010 for a five year period ending June 30, 2015. The District includes commercial properties along Seaport Boulevard and in a business park adjacent to Seaport Boulevard. It encompasses all of the area included in the legal description of the District as stated in Resolution No. 10560 entitled "A Resolution Overruling Protest, Ordering the Formation of Seaport Boulevard Landscape Maintenance District and Ordering that the Alternative Method for the Levy of Benefit Assessments be Made Applicable Thereto". This legal description was subsequently drawn up into a boundary map which has been recorded with the City Clerk and the County Recorder Office. The District was established to maintain certain public utility facilities and landscaping improvements on public rights of way determined to be of sole benefit to the parcels within the District. The majority of improvements maintained by this District are landscape improvements. The District also pays for the operation of the storm retention basin to the east of Seaport Boulevard. The prior property owner vote approved only a five year cumulative levy. Any continuation of the levy at its current amount beyond the fiscal year ending June 30, 2015 requires a majority protest vote of affected property owners. In consultation with property owners, staff has prepared another annual budget for the District. Property owners will vote to approve the proposed maximum annual assessment levy.