I have decided to go with one of those plastic/resin 8x8 sheds. These
came with a resin flooring already.

My question is preping the area and the foundation. I originally
thought about having concrete poured but it is too much money /
possible property tax complications.

It is going to rest on the soil that was previously lawn, I'm in CA
and pretty much our soil is sort of like clay like consistency

My plan is as follows
1) remove all grass, and sprinkler below the area
2) tampe with a shovel or rental tamper to try to get it pretty much
level and compacted.
3) apply roundup or some vegetation killer
4) apply weed block cloth just in case..

5) foundation: using 2"x8"x2H"? concrete blocks or those concrete
stepping blocks typically used for lawn/garden I will lay out the area
with it. I'm thinking of using the stepping blocks because it will
require alot less pieces. What else could i use? bricks?

6) assemble shed on top on this "foundation"

In the relatively dry climate and a resin shed I think it will work?
Let me know if I need a leveling sand or something in between or some
kind of cement to hold the bricks together. just for reference my
friend has put the same shed on just the dirt in his backyard and the
only problem he had is he didn't level it quite perfectly and the door
alignment is slightly crooked, that is what I hope to solve with the
concrete blocks.

Also, I wanted to know is it a bad idea to put the shed against the
fence between me and my neighbor. If the fence needs
servicing/replacement, how much room do I leave between the shed and
the fence?