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Parks, Recreation and Community Services Superintendent Hover said that Proposition 218 requires a recertification of the Assessment District by a majority vote of the property owners in that District, and an increase of fees also requires a similar vote. Proposition 218 requires identification of the areas of specific benefit, the homeowners, and the areas of general benefit, the City's responsibility. The city is subject to the same proportional costs as are the homeowner associations. Superintendent Hover described the meetings that are required for all the members of the District, including the City Attorney, representatives from Redwood Shores Properties, M H Podell who will be building apartment complexes, Peachtree Properties representing the Cove, Ryland Homes, Kaufinan Broad, Mike Gibbons, Peter Vorametsanti, and Bill Euphrat, consultant and himself Superintendent Hover described the options that were open to the members of the committee. He described the consensus that the District members are recommending: . Reconfirm the District; . Include an automatic built-in inflation clause of 2%, or an increase of a landscape maintenance gardener, which could be higher than 2%, but not over 3.5% in a given year. If more money was collected than was actually used there would be a credit for the subsequent year; . There was never an issue of money because everyone understood that either the owners associations or the District would have to pay the higher level maintenance costs; . The stabilized budget, the maximum budget, was $155,454, a little bit below previous costs; . The District had three components, residential, commercial and the City which is the area of general benefit. The residential component included those units yet to be built, and would be assessed $159.88 per unit per year. The commercial component is about 5% of the assessment, the residential is about 83% and the City is about 12.5% ($19,000 after build out) of the contribution to the District; . The budget request for 1997/98 is about $151.90. Bill Euphrat, City consultant, described the schedule for conducting an election regarding Redwood Shores Landscape Maintenance District No. 1995-1 according to Proposition 218, including Council actions and the election itself. Mr. Euphrat advised that the ballots will be tabulated according to the financial obligation of each property owner as required by Proposition 218. Mr. Euphrat described the protest procedures, and said that if more than 50% of the property owners, weighted by their financial obligations, vote against it, then there will be no levies. The Assessment District would remain, but there would be no levies. The City would have to negotiate with the owners associations as to the level of landscape maintenance that would be provided. If more than 50% vote for it, then it will go on the secured tax roll for the next fiscal year and because of the inflation equation that is in the formula it will increase automatically every year. ADJOURNED REGULAR COUNCIL MEETING MINUTE BOOK NO. 55 JUNE 9, 1997 MINUTES Page No. 396 PAGE 10