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HomeMy WebLinkAboutRES 2025-25RESOLUTION NO. 2025-25 A RESOLUTION APPROVING THE CONTINUATION OF THE LEVY AND COLLECTION OF ASSESSMENTS FOR CITY OF DIAMOND BAR LANDSCAPING ASSESSMENT DISTRICT NO, 38 FOR FISCAL YEAR 2025-26. WHEREAS, by Resolution No. 2025-22, the City Council approved the Engineer's Report ("Report") of the Engineer of Work related to City of Diamond Bar Landscaping Assessment District No. 38 ("District") prepared pursuant to Part 2 of Division 15 of the California Streets and Highways Code (§ 22500, et seq.), known as the Landscaping and Lighting Act of 1972 ("Act"), which described the improvements thereon, and gave notice of and fixed the time and place of the public hearing on the question of assessment thereon for fiscal year 2025-26. A diagram of the area encompassed by the District is attached hereto as Exhibit A; and WHEREAS, the Report is on file with the City Clerk of the City of Diamond Bar; and WHEREAS, said hearing was duly and properly noticed, commenced in the SCAQMD Auditorium located at 21865 Copley Drive, Diamond Bar, California on July 15, 2025, and was concluded prior to the adoption of this Resolution; and WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Diamond Bar as follows: Section 1. The Recitals of this Resolution are in all respects true and correct. Section 2. The City Council hereby expressly overrules any and all protests filed objecting to the proposed improvements specified herein or the assessment levied, therefore. Section 3. Based upon its review of the Report, and other reports and information, the City Council hereby finds that (i) the land within the District will be benefitted by the improvements specified in said Report, (ii) the District includes all of the lands so benefitted, and (iii) the net amount to be assessed upon the lands within the District for the fiscal year 2025-26 fiscal year, is apportioned by a formula and method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements. Section 4. The improvements specified in the Report are hereby ordered to be completed. Resolution No. 2025-25 Section 5. The assessment diagram contained in the Report and the assessment of $15.00 for each assessable lot located within said District are hereby adopted and confirmed and said assessment is hereby levied for the fiscal year 2025-26. Section 6. The assessment is in compliance with the provisions of the Act, and the City Council has complied with all laws pertaining to the levy of an annual assessment pursuant to the Act. The assessment is levied for the purpose of paying the costs and expenses of the improvements described in the Report for fiscal year 2025-26. Section 7. The City Council hereby certifies that the assessments to be placed on the 2025-26 property tax bills meet the requirements of Proposition 218 that added Articles XIIIC and MID to the California Constitution. Section 8. The assessments are levied without regard to property valuation. Section 9. The City Treasurer shall deposit all moneys representing assessments collected by the County to the credit of a special fund for use in City of Diamond Bar Landscaping Assessment District No. 38. Section 10. The City Clerk is hereby authorized and directed to file the diagram and assessment with the County Auditor, together with a certified copy of this Resolution upon its adoption. Section 11. A certified copy of the assessment and diagram shall be filed in the office of the City Clerk and open for public inspection. Section 12. The City Clerk shall certify to the adoption of this Resolution. PASSED, ADOPTED AND APPROVED this 15t" day of July 2025. CITY OF DIAMOND BAR Chia Yu Teng, May [Signatures continued on the following page] 2 Resolution No. 2025-25 I Kristina Santana, City Clerk of the City of Diamond Bar, do hereby certify that the foregoing Resolution was passed, approved and adopted at the regular meeting of the City Council of the City of Diamond Bar held on the 15th day of July 2025, by the following roll call vote: AYES: COUNCIL MEMBERS: Chou, Liu, Low, MPT/Tye, M/Teng NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ABSTAINED: COUNCIL MEMBERS: None Kristina Santana, City Clerk 3 Resolution No. 2025-25 Exhibit A Assessment District # 38 for the .. III City of Diamond Bar f `% St 0 � /I lilt 1 _, M.,. mei i� ;� Y ill ob 1.; �.. 1I IF IF 1 +rr tep r*� 1 / 1 / It 11 it it / ---_____� istrict � Boundary ' Medians__ Parkways IF Turf Areas ® /Y CITY OF DIAMOND BAR Fiscal Year 2025/26 Engineer's Report For: Landscaping Assessment District No. 38 June 2025 Prepared by; helping communrtles turd tomorrow nbsgov.com Corporate Headquarters 31.605 femecula Parkway, Suite S00 Temecula, CA 92592 Toll free: 800.676.7516 TABLE OF CONTENTS 1. Engineer's Letter.............................................................................................................1 2. Introduction...................................................................................................................2 2ABackground..............................................................................................................2 2.2 Process for Annual Assessment.............................................................................. 2 2.3 Legislative Context.................................................................................................. 3 3. Plans and Specifications..................................................................................................6 4. Estimate of Costs............................................................................................................ 8 4.1 District Budget.........................................................................................................8 4.2 Balance to Lev 8 5. Method of Apportionment............................................................................................10 5.1 Special Benefit.......................................................................................................10 5.2 General Versus Special Benefit.............................................................................12 5.3 Quantification of General Benefit.........................................................................13 5.4 Method of Assessment..........................................................................................16 5.5 Annual Assessment Calculation............................................................................16 5.6 Duration of Assessment........................................................................................16 5.7 Appeals and Interpretation...................................................................................17 6. Assessment Diagram.....................................................................................................18 7. Assessment Roll............................................................................................................19 1. ENGINEER'S LETTER WHEREAS, the City Council of the City of Diamond Bar (the "City"), State of California, under the Landscaping and Lighting Act of 1912 (the "Act"), directed NBS to prepare and file the Annual Engineer's Report for the Landscaping Assessment District No. 38 (the "District") for Fiscal Year 2025/26, in accordance with Article 4 of Chapter 1 of the Act and Article XIII D of the California Constitution (the "Article XIII D"). The report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the administration, maintenance, operations and servicing of the improvements for Fiscal Year 1025/26, the diagram for the District, showing the area and properties to be assessed, and assessing the net amount upon the assessable lots and/or parcels within the District in proportion to the special benefit received. NOW THEREFORE, the assessments as detailed in this Engineer's Report and as summarized in the table below are made to cover the portion of the estimated costs of maintenance, operation, and servicing of said improvements to be paid by the assessable real property within the District in proportion to the special benefit received. (1) includes active and levied parcels. I, the undersigned, respectfully submit this Engineer's Report and, to the best of my knowledge, information, and belief, the Engineer's Report, Assessments, and the Assessment Diagram herein have been prepared, computed, and levied in accordance with the assessment methodology adopted, approved, and ordered by the City Council of the City of Diamond Bar at the time of District formation. essment Engineer Alo. 46 1486 � ���City of Diamond Bar Landscaping Assessment District No. 38 -Fiscal Year 2025/26 Engineer's Report 1 2. INTRODUCTION 2.1 Background The City services and maintains perimeter and median landscaping, and other improvements (the "Improvements') to various parts of the City. In order to fund the maintenance and operation (the "Services") of these improvements, the District was formed in 1984 by the County of Los Angeles prior to the incorporation of the City of Diamond Bar. Upon incorporation in 1989, the City assumed jurisdiction over the District. This Engineer's Report (the "Report") was prepared to establish the budget for the Improvements (as described below) that will be funded by the Fiscal Year 2025/26 assessments and other revenue, and to determine the general and special benefits received from the Improvements by property within the District and the method of assessment apportionment to lots and parcels. This Report and the assessments have been made pursuant to Part 2 of Division 15 of the California Streets and Highways Code, commonly known as the Landscape and Lighting Act of 1972, and Article XIII D. 2.2 Process for Annual Assessment As required by the procedures specified in the Act, an Engineer's Report must be prepared on an annual basis which contains a full and detailed description of the improvements, the boundaries of the assessment district, and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the assessment district. The City Council must also annually adopt a Resolution of Intention which: • Declares the intention of the City Council to levy and collect assessments within the assessment district for the fiscal year stated therein. • Generally describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements. • Refers to the assessment district by its distinctive designation and indicates the general location of the assessment district. • Refers to the report of the engineer, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the assessment district and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the assessment district. • Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment. • States whether the assessment is proposed to increase from the previous year. If the assessments are to be levied in the same or lesser amounts than the maximum assessment allowed, the City Clerk shall give notice of the public hearing by causing the Resolution of Intention to be published. Any interested person may, prior to the conclusion of the public hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. During the course or upon conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including changes in the �� � �� City of Diamond Bar Landscaping Assessment District No. 38 -Fiscal Year 2025/26 Engineer's Report 2 improvements, any zones within the assessment district, and the proposed diagram or the proposed assessment. If the assessment to be levied exceeds the maximum assessment allowed, the City must comply with the procedures specified in Article XIII D and Proposition 218, The City Council, upon conclusion of the public hearing must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the report. If confirmed, the assessments would be submitted to the County Auditor Controller for inclusion on the property tax roll. Beginning in 2025, NBS became the Assessment Engineer for the District. To maintain an accurate reference and legally defensible record of the District, pertinent language used in previous engineer's reports has been retained herein and is cited with footnotes, as appropriate. 2.3 Legislative Context In 1996, California Voters adopted Proposition 218, the "Right to Vote on Taxes Act" which added Articles XIII C and XIII D to the California Constitution. Article XIII D imposes certain substantive and procedural requirements on any agency that wishes to levy special assessments. Article XIII D imposes four basic substantive requirements on assessmentsl: • All parcels that will have a special benefit conferred upon them and upon which an assessment will be imposed must be identified; • The general benefits must be distinguished from the special benefits conferred on the parcels; • The proportionate special benefit derived by each parcel must be determined in relationship to the entirety of the capital improvement, the maintenance and operation expenses of the public improvement, or the cost of the property related service being provided; and • The amount assessed to a parcel must not exceed the reasonable cost of the proportional special benefit conferred on that parcel and does not include any costs attributable to the general benefit. Since the initial passage of Proposition 218, several court rulings have helped provide context and direction on the practical implementation procedures and requirements for levying assessments. Several of the key concepts from these rulings are summarized below. GENERAL BENEFIT Article XIII D requires an agency to separate the general benefits from the special benefits conferred because only special benefits are assessable. The Court of Appeal in Golden Hills Neighborhood Assn., Inc. v. City of San Diego (2011)2 clarified this concept by stating, "Separation and quantification of general and special benefits must be accomplished by apportioning the cost of a service or improvement between the two and assessing property owners only for the portion of the cost representing special benefits." i California Constitution Article Xlll D Section 4. 2 Golden Hill Neighborhood Assn. v. City of San Diego CA4/1, D062203 (Cal. Ct. App. 2013J ���City of Diamond Bar Landscaping Assessment District No. 38 -Fiscal Year 2025/26 Engineer s Report 3 The Court of Appeal in Beutz v. County of Riverside (2010) ("Beutz")' quoted from the Legislative Analyst's Office pamphlet titled "Understanding Proposition 218" which states an agency must, "estimate the amount of special benefit landowners would receive from the project or service, as well as the amount of 'general benefit.' This step is needed because Proposition 218 allows local government to recoup from assessments only the proportionate share of cost to provide the special benefit." The Court in Beutz furthered this idea stating, "Separating the general from the special benefits of a public improvement project and estimating the quantity of each in relation to the other is essential if an assessment is to be limited to the special benefits." The Court of Appeal in Silicon Valley Taxpayers'Association Incorporated v. Santa Clara County Open Space Authority (2008) ("SVTA") 4 clarified that general benefits are not restricted to benefits conferred only on persons and property outside the assessment district but can include benefits both conferred on real property located in the district or to the public at large. The "public at large" includes all members of the public, including those who live, work, and shop within the district, and not simply transient visitors. BENEFIT -BASED NOT COST -BASED In Bonander v. Town of Tiburon (2009) ("Tiburon")5, the Court of Appeal clarified the idea that assessments must be apportioned based upon benefit rather than cost. The Court stated, "proportionate special benefit is the basis upon which a project's total assessable costs are apportioned among parcels within an assessment district." The assessment on a particular property cannot be based on the relative cost of the improvements, but rather the special benefit conferred on such property. The Court in Tiburon also stated, "an assessment represents the entirety of the cost of the improvement or property -related service, less any amount attributable to general benefits (which may not be assessed), allocated to individual properties in proportion to the relative special benefit conferred on the property." PUBLIC PROPERTY Section 4, Subdivision (a) of Article XIII D states, in part, "Parcels within a district that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit." Historically there had been differing opinions about whether this requirement that publicly owned property should not be exempt actually meant those properties must be assessed. The Court of Appeal in Manteca Unified School District v. Reclamation District No. 17 et al (2017)6 clarified this issue by stating, "Section 4, Subdivision (a) of Article Xlll D of the California Constitution unambiguously conditions any continuing benefit assessment exemption on a showing by clear and convincing evidence of no special benefit." s Beutz v. County of Riverside, 109 Cal. Rptr. 3d 851 (Cal. Ct. App. 2010) o Silicon Valley Taxpayers' Association Incorporated v. Santa Clara County Open Space Authority, 44 Cal. 4th 431 (2008). s Bonander v. Town of Tiburon, 147 Cal. App. 4th 1116 (Cal. Ct. App. 2007) 6 Manteca Unified School District v. Reclamation District No. 17 et al, C077906 (Cal. Ct. App. 2017) ���City of Diamond Bar Landscaping Assessment District No. 38 -Fiscal Year 2025/26 Engineers Report 4 IMPRECISION The Court in Tiburon acknowledged the difficulty of trying to precisely assign and measure special benefit, stating, "Any attempt to classify special benefits conferred on particular properties and to assign relative weights to those benefits will necessarily involve some degree of imprecision." The Court in Tiburon went on to say that a formula assigning equal weight to different special benefits "may be a legally justifiable approach to measuring and apportioning special benefits, [but] it is not necessarily the only valid approach. Whichever approach is taken to measuring and apportioning special benefits, however, it must be both defensible and consistently applied." ��City of Diamond Bar Landscaping Assessment District No. 38 -Fiscal Year 2025/26 Engineer's Report 5 3. PLANS AND SPECIFICATIONS The work and improvements proposed to be undertaken by the City and the cost thereof paid from the levy of the annual assessment provide special benefit to assessor parcels within the District defined in the Method of Assessment herein. Consistent with the Act, the improvements are generally described as follows: MEDIANS The landscaped islands to be maintained by the District are located as follows: • Diamond Bar Blvd • Grand Ave • Golden Springs Dr — 57 freeway overcrossing to West City Limits • Golden Prados Dr —Golden Springs Dr to Hopi St • Tin Dr —Great Bend Drto Diamond Bar Blvd • Lemon Ave — Lycoming St to Golden Springs Dr • Sunset Crossing Rd — 57 freeway off -ramp to Prospectors Rd • Prospectors Rd — at Dry Creek Rd; at Palo Cedro Dr; and at Beaverhead Dr • Pathfinder Rd at Brea Canyon Rd (east of 57 freeway) PARKWAYS The landscaped parkways to be maintained by the District are located as follows: • Grand Ave —Summit Ridge to Diamond Bar Blvd, north side • Temple Ave — Diamond Bar Blvd to Golden Springs Dr, south side • Golden Springs Dr— Ballena Dr to End of cul-de-sac • Golden Springs Dr — El Encino Dr to Platina Dr • Golden Springs Dr — Rancheria Rd to end of cul-de-sac • Diamond Bar Blvd — Mountain Laurel Way to Maple Hill Rd • Pathfinder Rd — Evergreen Springs Dr to end of cul-de-sac • Brea Canyon Rd — at Gerndal St • Golden Springs Dr— at Adel Ave • Brea Canyon Rd —South of Pathfinder Rd to southerly City Limits, both sides • Sunset Crossing Rd —Big Falls Dr to Chapparal Dr �� ��� City of Diamond Bar Landscaping Assessment District No. 38 -Fiscal Year 2025/26 Engineer's Report 6 TURF AREAS The landscaped turf areas to be maintained by the District are located as follows: • Diamond Bar Blvd — at Gold Rush Dr • Grand Ave (east side) —from south of Rolling Knoll Dr to driveway at the Diamond • Bar Center Installation, maintenance, and servicing of Improvements, may include, but are not limited to, turf and play areas, landscaping, ground cover, shrubs and trees, irrigation systems, lighting, fencing, entry monuments, graffiti removal and repainting, labor, materials, supplies, utilities and equipment, as applicable, at each of the locations owned, operated or maintained by the District. Installation -means the construction of Improvements, including, but not limited to, land preparation such as grading, leveling, cutting and filling), sod, landscaping, irrigation systems, walkways, drainage, and lights. Maintenance -means the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including repair, removal, or replacement of all or part of any improvement; providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; the removal of trimmings, rubbish, debris, and other solid waste; the cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti. Servicing -means the furnishing of electric current, or energy, gas or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements, or water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other i m proveme nts. Incidental expenses include all of the following: (a) The costs of preparation of the report, including plans, specifications, estimates, diagram, and assessment; (b) the costs of printing, advertising, and the giving of published, posted, and mailed notices, (c) compensation payable to the County for collection of assessments, (d) compensation of any engineer or attorney employed to render services in proceedings pursuant to this part; (e) any other expenses incidental to the construction, installation, or maintenance and servicing of the Improvements; (f) any expenses incidental to the issuance of bonds or notes pursuant to Streets & Highways Code Section 22662.5; and (g) costs associated with any elections held for the approval of a new or increased assessment (according to Streets & Highways Code §22526). Modifications to the District structure could include, but are not limited to, substantial changes or expansion of the Improvements provided, substantial changes in the service provided, modifications or restructuring of the District including annexation or detachment of specific parcels, revisions in the method of apportionment, or proposed new or increased assessments. The assessment proceeds will be exclusively used for Improvements within the District plus incidental expenses. ��City of Diamond Bar Landscaping Assessment District No. 38 -Fiscal Year 2025/26 Engineer's Report 7 4. ESTIMATE OF COSTS 4.1 District Budget Fiscal Year 2025/26 estimated costs of maintenance and servicing the Improvements as described in the Plans and Specifications of this Report are summarized below. Salaries & Benefits (subsidized by General Fund) $52,992 Advertising 31000 Utilities 159,500 Maintenance of Grounds/Buildings 50,000 Professional Services 71500 Landscape Maintenance 211,500 Tree Maintenance 10,000 Total Estimated Expenditures $494,492 Contributions from Other Sources (217,712) Fiscal Year 2025/26 Net Amount to be Assessed (2) $276,780 (1) Includes City General Fund contribution. (2) The net available funds, after incidental, administrative, financing, and other costs shall be expended exclusively for Improvements within the boundaries of the District or as described herein, and appropriate incidental and administrative costs as defined in the Plans and Specifications section, A list containing the Fiscal Year 2025/26 assessment and number of parcels proposed to be assessed is included in Section 7 of this Report. 4.2 Balance to Levy The following table shows the total costs, additional revenues and contributions, and the Balance to Levy for Fiscal Year 2025/26. Salaries &Benefits Operating Expenses &Services Total District Costs Contribution to (from) Operational Reserves Other Revenue Sources 11i Balance to levy (1) Includes City General Fund contribution. �� � �� City of Diamond Bar Landscaping Assessment District No. 38 -Fiscal Year 2025/26 Engineer's Report $52,992 441,500 $494,492 0 (2171712) $27 51780 n Total District Costs - Includes the personnel services, maintenance, and operations, capital (including capital replacement costs), indirect costs, and equipment. Contribution to (from) Operational Reserves - The operational reserves item provides funds to operate the District from the time period of July 1(beginning of the fiscal year) through January when the County provides the City with the first installment of assessments collected from the property tax bills. This eliminates the need for the City to transfer funds from non -District accounts to pay for District charges during the first half of the fiscal year. Negative amounts shown here are transfers that are used to reduce the Balance to Levy. Other Revenue Sources -The amount of additional funds designated for use by the District that are not from District assessments. These funds are added to the District account to reduce assessments and may be from either non -District sources including City General Fund contributions or District sources including interest earnings. Balance to Levy -The total amount to be levied and collected through assessments for the current fiscal year. The Balance to Levy represents the sum of the total direct and administration costs, reserves, contributions, and other revenue sources. ��City of Diamond Bar Landscaping Assessment District No. 38 -Fiscal Year 2025/26 Engineer's Report E 5. METHOD OF APPORTIONMENT The following section includes an explanation of the benefits to be derived from the Improvements throughout the District, as well as a description of the assessment methodology used to apportion the total assessment to properties within the District. The Fiscal Year 2024125 Engineer's Report was prepared by a different engineer of record and specific language from the Fiscal Year 2024125 Engineer's Report' has been referenced to describe the Method of Apportionment within the following section of this Report. The District consists of all assessor parcels within the boundaries as defined by the Assessment Diagram included with this Report. Further, all assessor parcels, including all privately and publicly owned parcels, are identified by Assessor Parcel Numbers listed within the included assessment roll. The method used for apportioning the assessment is based on the proportional special benefits to be derived by the properties in the District over and above general benefits conferred on real property or to the public at large. The assessment is apportioned to the parcels in proportion to the relative special benefit from the Improvements. The apportionment of special benefit is a two-step process: the first step is to identify the types of special benefit arising from the improvements, and the second step is to allocate the assessments to property based on the estimated relative special benefit for each type of property. 5.1 Special Benefit The improvements are expected to confer certain special benefits to the parcels within the District. Pursuant to the Prior Engineer's Report, the special benefit conferred to parcels is more fully described as follows: The following benefit categories summarize the types of special benefit to residential, commercial, industrial, and other lots and parcels resulting from the Improvements to be provided with the assessment proceeds. These types of special benefit are summarized as follows: A. Proximity to Improved Landscaped Areas and Other Public Improvements within the District. e. Access to Improved landscaped areas and Other Public Improvements within the District. C. Improved Views within the District. D. Extension of a property's outdoor areas and green spaces for properties within close proximity to the Improvements. The SVTA decision provides enhanced clarity to the definitions of special benefits from landscaping and parks to properties in three distinct areas: proximity, expanded or 'Method of Apportionment and subsections as detailed in the Fiscal Year 2024/25 Engineer's Report, City of Diamond Bar, Landscaping Assessment District No. 38, dated July 2024 and approved by City Council on June 18, 2024 ("Prior Engineer's Report"). R �City of Diamond Bar Landscaping Assessment District No. 38 -Fiscal Year 2025/26 Engineer's Report 10 improved access, and views. The SVTA decision also clarifies that a special benefit is a service or improvement that provides a direct advantage to a parcel and that indirect or derivative advantages resulting from the overall public benefits from a service or improvement are general benefits. The SVTA decision also provides specific guidance that setback landscaping is a direct advantage and special benefit to property that is proximate to a landscaped area that is improved by an assessment: The characterization of a benefit may depend on whether the parcel receives a direct advantage from the improvement (e.g. proximity to a park) or receives an indirect, derivative advantage resulting from the overall public benefits of the improvement (e.g. general enhancement of the district's property values). Proximity, improved access and views, in addition to the other special benefits listed herein further strengthen the basis of these assessments. a Pursuant to the Prior Engineer's Report, the primary special benefits on landscaping are as set forth below: 1. Beautification of the streets which are used by all of the residents in Diamond Bar. 2. A sense of community pride resulting from well -maintained green spaces. 3. The enhancement of the value of property, which results from the foregoing benefits. In addition, the following special benefits are identified in the Prior Engineer's Report: PROXIMITY TO IMPROVED LANDSCAPED AREAS WITHIN THE DISTRICT Only the specific properties within close proximity to the Improvements are included in the District. The District has been narrowly drawn to include the properties that receive special benefits from the Improvements. Therefore, property in the District enjoys unique and valuable proximity and access to the Improvements that the public at large and property outside the District do not share. In absence of the assessments, the Improvements would not be provided, and the public improvements funded in the District would be degraded due to insufficient funding for maintenance, upkeep and repair. Therefore, the assessments provide Improvements that are over and above what otherwise would be provided. Improvements that are over and above what otherwise would be provided do not by themselves translate into special benefits but when combined with the unique proximity and access enjoyed by parcels in the District, they provide a direct advantage and special benefit to property in the District. ACCESS TO IMPROVED LANDSCAPED AREAS WITHIN THE DISTRICT Since the parcels in the District are nearly the only parcels that enjoy close access to the Improvements, they directly benefit from the unique close access to improved landscaping areas and other public improvements that are provided by the assessments. This is a direct advantage and special benefit to property in the District. a Method of Apportionment and subsections as detailed in the Fiscal Year 2024/25 Engineer's Report City of Diamond Bar, Landscaping Assessment District No. 38, dated July 2024 and approved by City Council on June 18, 2024 ("Prior Engineer's ReportJ. R R City of Diamond Bar Landscaping Assessment District No. 38 -Fiscal Year 2025/26 Engineer's Report 11 IMPROVED VIEWS WITHIN THE DISTRICT The City, by maintaining permanent public improvements funded by the assessments in the District, provides improved views to properties in the District. The properties in the District enjoy close and unique proximity, access and views of the specific Improvements funded in the District; therefore, the improved and protected views provided by the assessments are another direct and tangible advantage that is uniquely conferred upon property in the District. EXTENSION OF A PROPERTY'S OUTDOOR AREAS AND GREEN SPACES FOR PROPERTIES WITHIN CLOSE PROXIMITY TO THE IMPROVEMENTS In large part because it is cost prohibitive to provide large open land areas on property in the District, the residential, commercial, and other benefiting properties in the District do not have large outdoor areas and green spaces. The Improvements within the District provide additional outdoor areas that serve as an effective extension of the land area for proximate properties because the Improvements are uniquely proximate and accessible to property in close proximity to the Improvements. The Improvements, therefore, provide an important, valuable and desirable extension of usable land area for the direct advantage and special benefit of properties in the District because such properties have uniquely good and close proximity to the Improvements. 5.2 General Versus Special Benefit Article XIIIC of the California Constitution requires any local agency proposing to increase or impose a benefit assessment to "separate the general benefits from the special benefits conferred on a parcel." The rationale for separating special and general benefits is to ensure that property owners subject to the benefit assessment are not paying for general benefits. An assessment can fund special benefits but cannot fund general benefits. Accordingly, a separate estimate of the special and general benefit is given in this section. In other words: Total _ General + Special Benefit Benefit Benefit There is no widely accepted or statutory formula for general benefit. General benefits are benefits from improvements or services that are not special in nature, are not "particular and distinct" and are not over and above" benefits received by other properties. SVTA provides some clarification by indicating that general benefits provide "an indirect, derivative advantage" and are not necessarily proximate to the improvements. In this Report, the general benefit is liberally estimated and described and then budgeted so that it is funded by sources other than the assessment. The starting point for evaluating general and special benefits is the current, baseline level of service. The assessment will fund Improvements "over and above" this general, baseline level and the general benefits estimated in this section are over and above the baseline. �` ��� City of Diamond Bar Landscaping Assessment District No. 38 -Fiscal Year 2025/26 Engineer's Report 12 A formula to estimate the general benefit is listed below: Benefit to Real Benefit to Real Benefit to General Property Outside + Property Inside the + the Public Benefit the District District that is Indirect at Large and Derivative Special benefit, on the other hand, is defined in the state constitution as "a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large." The SVTA decision indicates that a special benefit is conferred to a property if it "receives a direct advantage from the improvement (e.g., proximity to a park)." In these assessments, as noted, properties in the District have close and unique proximity, views and access to the Improvements and uniquely improved desirability from the Improvements and other properties and the public at large do not receive significant benefits because they do not have proximity, access or views of the Improvements. Therefore, the overwhelming proportion of the benefits conferred to property is special and is only minimally received by property outside the Districts or the public at large. 5.3 Quantification of General Benefit Although the analysis used to support these assessments concludes that the benefits are solely special, as described above, consideration is made for the suggestion that a portion of the benefits are general. General benefits cannot be funded by these assessments — the funding must come from other sources. In this section, the general benefit from landscaping and other types of Improvements is liberally estimated and described and then budgeted so that it is funded by sources other than the assessment. BENEFIT TO PROPERTY OUTSIDE THE DISTRICT Properties within the District receive almost all of the special benefits from the Improvements because properties in the District enjoy unique close proximity and access to the Improvements that is not enjoyed by other properties or the public at large. However, certain properties within the proximity/access radius of the Improvements, but outside of the boundaries of the District, may receive some benefit from the Improvements. Since this benefit is conferred to properties outside the District boundaries, it contributes to the overall general benefit calculation and will not be funded by the assessments. The general benefit to property outside of the District is calculated with the parcel and data analysis. Since the properties outside the District with frontage abutting the Improvements cannot be assessed by the District, this is a form of general benefit to other property. The primary way that parcels outside the district benefit by the Improvements is from views. Therefore, parcels that abut the landscape areas and are not separated from the Improvements by a privacy fence are counted for this general benefit. Since very few of the Improvements lie at the District boundary near occupied parcels, there are very few parcels in this category. The general benefit to property outside of the District is calculated as follows. Assumptions based on the status of parcels in the District at the time of the initial benefit calculation: 1 � ■ �� City of Diamond Bar ry Landscaping Assessment District No. 38 -Fiscal Year 2025/26 Engineer's Report 13 • 18 Parcels Outside the District • 18,422 Parcels In the District Calculation of General Benefit to Property Outside the District: 18 / (18 + 18,422) = 0.10%. BENEFIT TO PROPERTY INSIDE THE DISTRICT THAT IS INDIRECT AND DERIVATIVE The "indirect and derivative" benefit to property within the District is particularly difficult to calculate. A solid argument can be presented that all benefit within the District is special, because the other Improvements are clearly "over and above" and "particular and distinct" when compared with the baseline level of service and the unique proximity, access and views of the other Improvements enjoyed by benefiting properties in the District, Nevertheless, the SVTA decision indicates there may be general benefit "conferred on real property located in the district." A measure of the general benefits to property within the assessment area is the percentage of land area within or directly abutting the District that is publicly owned and used for regional purposes such as major roads, rail lines, and other regional facilities because such properties used for regional purposes could provide indirect benefits to the public at large. Approximately 4.43% of the land area in the District is used for such regional purposes, so this is a measure of the general benefits to property within the District. BENEFIT TO THE PUBLIC AT LARGE The general benefit to the public at large can be estimated by the proportionate amount of time that the District's Improvements are used and enjoyed by individuals who are not residents, employees, customers, or property owners in the District. It should be noted that these Improvements do not attract the public at large in the same way as park improvements — and they confer far less benefit to the public at large than do similar park improvements. In essence, the public does not visit an area to enjoy landscaping in the same way as they may visit a park. One way to measure the special benefit to the general public is by the vehicle trips through an area with Improvements by people who are not residents within the District. Of the four ways benefits are conferred (proximity, access, views, extension of a property's green space, and creation of lots), the only benefit that is conferred by way of pass -by vehicle trips is views, which accounts for 2S% of the total benefits. This is further reduced to 10% due the brevity of the views and because views are less critically important and are enjoyed much less often to the average non-resident driver than to a resident. Specific data is not available for the number of vehicle trips by non-residents of the District past the Improvements, which lie mostly on arterial roadways. A conservative estimate of vehicle trips by non- residents is 50% of all vehicle trips. Therefore 50% of 10% = 5.00% of the benefits from the other Improvements are general benefits to the public at large. �� City of Diamond Bar �, Landscaping Assessment District No. 38 -Fiscal Year 2025/26 Engineer's Report 14 TOTAL GENERAL BENEFITS Using a sum of these three measures of general benefit, approximately 9.53% of the benefits conferred by the Improvements may be general in nature and should be funded by sources other than the assessment. Landscaping General Benefit Calculation Outside the District 0.10% Inside the District 4.43% Public At Large 5.00% Total General Benefit 9.53% Although this analysis finds that 9.53% of the assessment may provide general benefits from the Improvements, it was determined a requirement for a minimum contribution from sources other than the assessments of 10%. This minimum contribution above the measure of general benefits will serve to provide additional coverage for any other general benefits. CURRENT GENERAL BENEFIT CONTRIBUTION FROM THE CITY This general benefit cannot be funded from the assessments; it must be funded from other sources such as the City's General Fund or other non -District funds. These contributions can also be in the form of in - lieu contributions to the installation and maintenance of the Improvements such as other City assets that support and protect the Improvements. The City will contribute both monetary and in -lieu resources to ensure that the general benefits conferred by the proposed Improvements are not funded by the District's assessments. A summary and quantification of these other contributions from the City is discussed below: The City owns, maintains, rehabilitates, and replaces curb and gutter along the border of the District Improvements. This curb and gutter serves to support, contain, retain, manage irrigation flow and growth, and provide a boundary for the Improvements. The contribution from the City towards general benefit from the maintenance, rehabilitation, and replacement of the curb and gutter is conservatively estimated to be 5%. The City owns and maintains a storm drainage system along the border of the District Improvements. This system serves to prevent flooding and associated damage to the Improvements and manage urban runoff including local pollutants loading from the Improvements. The contribution from the City towards general benefit from the maintenance and operation of the local storm drainage system is conservatively estimated to be 5%. The City owns and maintains local public streets along the border of the District Improvements. These public streets provide access to the Improvements for its enjoyment as well as efficient maintenance. The contribution from the City towards general benefit from the maintenance of local public streets is conservatively estimated to be 5%. The value of the construction of the improvements can be quantified and monetized as an annuity. Since this construction was performed and paid for by non -assessment funds, this "annuity" can be used to offset general benefit costs and is conservatively estimated to contribute 10%. ��City of Diamond Bar Landscaping Assessment District No. 38 -Fiscal Year 2025/26 Engineer's Report 15 The total General Benefit is liberally quantified at 10% which is entirely offset by the conservatively quantified total non -assessment contribution towards general benefit described above of 25%. Therefore, no additional General Benefit must be funded by the City. 5.4 Method of Assessment The development of an assessment methodology requires apportioning benefit to determine the relative special benefit for each property. The precise language from the Prior Engineer's Report is included below: The net amount to be assessed upon lands within the District in accordance with this report is apportioned by a formula and method which fairly distributes the amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each lot or parcel from the Improvements, namely the maintenance and servicing of public landscaping improvements within such District. The maintenance and servicing of public landscaping improvements installed and constructed in public places in the City provides a special benefit which is received by each and every lot or parcel within the District, tending to enhance their value. The primary benefits on landscaping are set forth below: 1. Beautification of the streets which are used by all of the residents in the City. 2. A sense of community pride resulting from well -maintained green spaces. 3. The enhancement of the value of property, which results from the foregoing benefits. The existing land use information indicates that well over 90 percent of the parcels within the City are residences. Because the special benefits derived apply equally to all residents and parcels, it has been determined that all assessable parcels would receive the same net assessment.' 5.5 Annual Assessment Calculation The assessment per parcel is $15. For Fiscal Year 2025/26 the amount of the Assessment for the District is not increased from prior years. 5.6 Duration of Assessment The District was formed or annexed in previous years. It is proposed that the assessments be continued every year after their formation or annexation, so long as the public improvements need to be maintained and improved, and the City requires funding for the improvements in the District. As noted previously, the assessment can continue to be levied annually after the City Council approves an annually updated s Method of Apportionment and subsections as detailed in the Fiscal Year 2024/25 Engineer's Report, City of Diamond Bar, Landscaping Assessment District No. 38, dated July 2024 and approved by City Council on June 18, 2024 ("Prior Engineer's Report"). ��City of Diamond Bar Landscaping Assessment District No. 38 -Fiscal Year 2025/26 Engineer's Report 16 Engineer's Report, budget for the assessment, improvements to be provided, and other specifics of the assessment. In addition, the City Council must hold an annual public hearing to continue the assessment. 5.7 Appeals and Interpretation Any property owner who feels that the assessment levied on the subject property is in error as a result of incorrect information being used to apply the foregoing method of assessment may file a written appeal with the City of Diamond Bar City Manager or his or her designee. Any such appeal is limited to correction of an assessment during the then -current Fiscal Year and applicable law. Upon the filing of any such appeal, the City Manager or his or her designee will promptly review the appeal and any information provided by the property owner. If the City Manager or his or her designee finds that the assessment should be modified, the appropriate changes shall be made to the Assessment Roll. If any such changes are approved after the Assessment Roll has been filed with the County for collection, the City Manager or his or her designee is authorized to refund to the property owner the amount of any approved reduction. Any dispute over the decision of the City Manager or his or her designee shall be referred to the Diamond Bar City Council, and the decision of the City Council shall be final. ��City of Diamond Bar Landscaping Assessment District No. 38 -Fiscal Year 2025/26 Engineer's Report 17 6. ASSESSMENT DIAGRAM The boundary of the District is coterminous with the City limits. The parcels to be assessed in the District are shown on the Assessment Diagram, which is on file with the City Clerk of the City of Diamond Bar and includes all those properties included in the original formation of the District and subsequent annexations. The following Assessment Diagram is for general location only and is not to be considered the official boundary map. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the County Assessor of the County of Los Angeles, at the time this Report was prepared, and are incorporated by reference herein and made part of this report. Assessment District # 38 for the City of Diamond Bar J l a r Unintt r UOtlnr[ary ♦`rr. Fla Wdlanvi . r � h•,�kwa�'+ _i ��City of Diamond Bar Landscaping Assessment District No. 38 -Fiscal Year 2025/26 Engineer's Report 18 7. ASSESSMENT ROLL Assessor's parcel identification, for each lot or parcel subject to the assessment, shall be based on the County Assessor's secured roll data for the applicable year in which this report is prepared and is incorporated herein by reference. A listing of assessor's parcels subject to the assessments for Fiscal Year 2025/26, along with the assessment amounts, is on file in the office of the City Engineer and incorporated herein by reference. Based on County Assessor's secured roll data, current assessor's parcels, including corrected and/or new assessor's parcels, will be submitted and/or resubmitted to the County Auditor/Controller. The annual assessment amount to be levied and collected for the resubmitted parcel(s) shall be determined in accordance with the method of apportionment and assessment rate approved in this report. Therefore, if a single assessor's parcel has a status change in development, other land use change, or subdivides into multiple assessor's parcels, the charge amounts applied to each of the new assessor's parcels shall be recalculated and applied according to the approved method outlined in the method of apportionment and assessment rate rather than a proportionate share of the original assessment amount. ��City of Diamond Bar Landscaping Assessment District No. 38 -Fiscal Year 2025/26 Engineer's Report