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HomeMy WebLinkAboutRES 2025-27RESOLUTION NO. 2025-27 A RESOLUTION APPROVING THE CONTINUATION OF THE LEVY AND COLLECTION OF ASSESSMENTS FOR CITY OF DIAMOND BAR LANDSCAPING ASSESSMENT DISTRICT NO. 41=2021 FOR FISCAL YEAR 2025-26. WHEREAS, by Resolution No. 2025-24, the City Council approved the Engineer's Report ("Report") of the Engineer of Work related to City of Diamond Bar Landscaping Assessment District No. 41-2021 ("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 the 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 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. 2025-27 Section 5. The assessment diagram contained in the Report and the assessment rates of $591.14 and $543.85 for the single-family and multi -family parcels, respectively, 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 CA 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. 41-2021. 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, Ma o [Signatures continued on the following page] 2 Resolution No. 2025-27 ATTEST: 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: NOES: ABSENT: ABSTAINED COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Chou, Low, MPT/Tye, M/Teng None None Liu 44� Kristina Santana, City Clerk 3 Resolution No. 2025-27 Exhibit A Landscaping Assessment District No. 41=2021 i .0000 I I _ I: Ttf r �M Illltilllrr, � 10.11 I.I. IU HEIGHTS /J/ ar' I <� -� CI n r' Legend District Boundary`�r Turf Areas r Slope Areas Brush Areas (3.00 ac) 00 rr ti CITY OF DIAMOND 6AR Fiscal Year 2025/26 Engineer's Report Far: Landscaping Assessment District No. 41-2021 June 2025 Prepared by: helping communitle.s fund tomorrow nbsgov.com Corporate Headquarters 32fi05 f emcarla Parkway, Surtc 100 Temecula, CA 92592 Toll free: 800.676.7516 TABLE OF CONTENTS 1. Engineer's Letter.............................................................................................................1 2. Introduction................................................................................................................... 2 2.1 Background..............................................................................................................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 Levy........................................................................................................8 5. Method of Apportionment............................................................................................10 5.1 Special Benefit.......................................................................................................10 5.2 General Versus Special Benefit.............................................................................13 5.3 Quantification of General Benefit.........................................................................14 5.4 Method of Assessment..........................................................................................15 5.5 Annual Assessment Calculation............................................................................18 5.6 Cost of Living Inflator............................................................................................18 5.7 Duration of Assessment........................................................................................18 5.8 Appeals and Interpretation...................................................................................18 6. Assessment Diagram. . a 2 a a a a a a a 8 0 a a a a 9 6 a a a a a 0 a 0 a a a 2 a a a a a a a a 0 a a 0 a 0 a 0 a a a 0 a a a 2 a 2 a 8 a a a a a a a 0 0 4 a 0 a a d 2 a a 2 0 2 0 0 a 0 & a a a a a a a a 0 0 4 0 4 a 0 020 78 Assessment Roll............................................................................................................ 22 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 1972 (the "Act"), directed NBS to prepare and file the Annual Engineer's Report for the Landscaping Assessment District No. 41-2021 (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. (2) Does not include rounding. 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 Barat the time of District formation. essment Engineer Ab. 14863 _.'it ��� City of Diamond Bar i Landscaping Assessment District No. 41-2021 -Fiscal Year 2025/26 Engineer's Report 1 2. INTRODUCTION 2A Background The City of Diamond Bar (the "City") services and maintains turf areas, slopes and open space areas, and other improvements (the "Improvements") in the Diamond Bar Hills area of the City. In order to fund the maintenance and operation (the "Services") of these projects and Improvements, Landscaping Assessment District No. 41 was formed in 1985 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. Since the passage of Proposition 218, the assessments for this existing district cannot be increased beyond the previously approved amount of $280.00 per parcel. This assessment amount does not generate sufficient revenue to fund the District's Improvements and Services, and the annual shortfalls have been funded by the City's General Fund. In 2021, the City Council directed that a new assessment be proposed and voted on by property owners within the District in accordance with Proposition 218 (Article XIIIC and D of the California Constitution). Their intent was to replace the existing District No. 41 with a new District No. 41-2021 that would adhere to the existing boundary and include the same improvements and services. These proposed assessments were supported by 87.55% of assessment ballots received from property owners (with each ballot weighted by the amount of assessments it represented). Therefore, on July 6, 2021, by its Resolution No. 2021-33, the City Council levied the new assessments for District No. 41-2021. 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 Act, 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. �� � �� City of Diamond Bar Landscaping Assessment District No. 41-2021-Fiscal Year 2025/26 Engineer's Report 2 • 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 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 assessments': • 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. i California Constitution Article Xlll D Section 4. HMN City of Diamond Bar Landscaping Assessment District No. 41-2021-Fiscal Year 2025/26 Engineer's Report 3 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)Z 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." The Court of Appeal in Beutz v. County of Riverside (2010) ("Beutz")3 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 Courtin 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") a 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 Courtin 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." z Golden Hill Neighborhood Assn. v. City of San Diego CA4/1, D062203 (Cal. Ct. App. 2013) s Beutz v. County of Riverside, 109 Cal. Rptr. 3d 851 (Cal. Ct. App. 2010) a Silicon Valley TaxpayersAssociation 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) City of Diamond Bar �� � R R landscaping Assessment District No. 41-2021 - Fiscal Year 2025/26 Engineer's Report 4 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." IMPRECISION The Courtin 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 Courtin 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." c Manteca Unified School District v. Reclamation District No. 17 et al, C077906 (Cal. Ct. App. 2017) US City of Diamond Bar Landscaping Assessment District No. 41-2021 -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: The City maintains landscaping and other improvements in locations wn the District's boundaries. The work and Improvements to be undertaken by the District, and the cost thereof paid from the levy of the annual assessment provide special benefit to parcels within the District as defined in the Method of Assessment herein. In addition to the definitions provided by the Act, the work and Improvements are generally described as mini -parks, slopes, and open space areas within the District. The Assessment Diagram shows the location and extent of the Improvements to be installed, maintained, or serviced by the proceeds from the assessment. 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, sidewalks, parking lots, lighting, fencing, 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, playground equipment, play courts, playing fields, recreational facilities, and public restrooms. 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 improvements. 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 City of Diamond Bar Landscaping Assessment District No. 41-2021-Fiscal Year 2025/26 Engineer's Report 6 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. 41-2021-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 $38,480 Advertising 3,000 Utilities 77,000 Maintenance of Grounds/Buildings I 50,000 Professional Services � 7,000 Landscape Maintenance � 70,600 Tree Maintenance � 23,000 Weed/Pest Abatement � 51,602 Capital Improvements 200,000 Total Estimated Expenditures $520,682 Contingencies/Reserves 55,580 Contributions from Other Sources ill (255,580) Fiscal Year 2025/26 Net Amount to be Assessed (Z) � $320,682 (1) Includes City General Fund contribution and fund balance carryover. (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. �� � �� City of Diamond Bar Landscaping Assessment District No. 41-2021 -Fiscal Year 2025/26 Engineer's Report 8 Salaries & Benefits $38,480 Operating Expenses & Services 282,202 Capital Improvements / Reserves 255,580 Total District Costs $5761262 Contribution to (from) Operational Reserves (235,563) Other Revenue Sources M (20,017) Balance to Levy $320,682 (1) Includes ON General Fund contribution. 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, fund balance carryover, 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 j Landscaping Assessment District No. 41-2021-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. 8. Improved Views within the District. C. Extension of a property's outdoor areas and green spaces for properties within close proximity to the Improvements. D. Safety and Security within the District. E. Creation of individual lots for residential and commercial use that, in absence of the assessments, would not have been created. � Method of Apportionment and subsections as detailed in the Fiscal Vear 2024/25 Engineer's Report, City of Diamond Bar, Landscaping Assessment District No. 41-2021, dated July 2024 and approved by City Council on June 18, 2024 ("Prior Engineer's Report"). ��City of Diamond Bar Landscaping Assessment District No. 41-2021 - Fiscal Year 2025/26 Engineer's Report 10 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 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 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. 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 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 Report"J. R IR City of Diamond Bar Landscaping Assessment District No. 41-2021 -Fiscal Year 2025/26 Engineer's Report 11 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. SAFETY AND SECURITY WITHIN THE DISTRICT The City, through proper installation, maintenance, and servicing of public and private improvements funded by the assessments in the District, provides increased security and safety by preventing crime and suppressing fire. For parks and recreation improvements, proper lighting and well -kept landscapes help to deter crime and vandalism. Other landscaped area activities such as slope maintenance and brush clearing provide critical fire suppression. CREATION OF INDIVIDUAL LOTS FOR RESIDENTIAL USE THAT, IN ABSENCE OF THE ASSESSMENTS, WOULD NOT HAVE BEEN CREATED In the District, the original owner/developer(s) of the property within the District agreed unanimously to the assessments. The assessments provide the necessary funding for improvements that were required as a condition of development and subdivision approval. Therefore, such assessments allowed the original property to be subdivided and for development of the parcels to occur. As parcels were sold, new owners were informed of the assessments through the title reports, and in some cases, through Department of Real Estate "White Paper" reports that the parcels were subject to assessment. Purchase of property was also an "agreement" to pay the assessment. Therefore, in absence of the assessments, the lots within most of the District would not have been created. These parcels, and the improvements that were constructed on the parcels, receive direct advantage and special benefit from the assessments. SUMMARY OF RELATIVE WEIGHT OF BENEFIT FACTORS A solid argument could be made that the creation of individual lots benefit comprises 100% of the benefit because the Improvements were incorporated into the original planning and design of the subdivision, and thus were deemed to be necessary and required for the development of the lot. Without those Improvements and associated benefit, the lots would not have been created. Nevertheless, four other definitive benefits accruing to the parcels within the District are identified, and an allowance should be made within the overall relative importance of benefits. The relative benefit level of the five identified benefits used in this Report is shown below. Proximity &Access 10% Views 10% Outdoor Area Extension 10% Safety & Security 10% Creation of Lots 60% Total Benefit 100% �� � �� City of Diamond Bar Landscaping Assessment District No. 41-2021-Fiscal Year 2025/26 Engineer's Report 12 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. 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 District that is Indirect the District 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. ���City of Diamond Bar Landscaping Assessment District No. 41-2021-Fiscal Year 2025/26 Engineer's Report F[e3 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 the Improvements is liberally estimated and described using the precise language from the Prior Engineer's Report in the sections below. 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 certain properties outside the District enjoy close proximity and access to the Improvements cannot be assessed by the District, this is a form of general benefit to other property. There are 23 parcels outside the District that are directly adjacent to areas where slopes are maintained by the District. The benefits conferred to these properties do not include the Lot Creation benefit factor, therefore the benefit is reduced by 60%. The general benefit to property outside of the District is calculated as follows. Assumptions: • 23 Parcels Outside the District • 554 Parcels In the District • 40% Benefit Factor Calculation of General Benefit to Property Outside the District: 23 / (23 + 554) x 40% = 1.59%. 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. The District boundaries are narrowly drawn to include only the residential areas within the neighborhood, and there are no regional facilities within the District. Therefore, the indirect and derivative general benefits to property within the District are zero. City of Diamond Bar Landscaping Assessment District No. 41-2021-Fiscal Year 2025/26 Engineer's Report 14 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 slope improvements in the same way as they may visit a park. However, certain slopes maintained by the District may provide some enhancement to views enjoyed by the public as they drive past. Approximately 25% of the slopes and linear green areas maintained by the District lie along arterial roadways that carry a high percentage of traffic not associated with people who are not residents or property owners within the District. While there are not statistics available as to what percentage of passerby vehicle trips are by non-residents or non -property owners, a liberal factor of 90% is assumed. Finally, of all the types of benefits conferred by the Improvements, passersby only benefit from views, which are estimated at 10% of the total benefits. Therefore, (90% of 25%) x 10% = 2.25% of the benefits from the Improvements are general benefits to the public at large. TOTAL GENERAL BENEFITS Using a sum of these three measures of general benefit, approximately 3.84% 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 1.59% Inside the District 0.00% Public At Large 2.25% Total General Benefit 184% 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 assessments. 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 allocation of special benefits to property is partially based on the type of property and the size of property. These benefits can also partially be measured by the occupants on �� � �� City of Diamond Bar Landscaping Assessment District No. 41-2021-Fiscal Year 2025/26 Engineer's Report 15 property in the District because such parcel population density is a measure of the relative benefit a parcel receives from the Improvements. It should be noted that many other types of "traditional" assessments also use parcel population densities to apportion the assessments. For example, the assessments for sewer systems, roads and water systems are typically allocated based on the population density of the parcels assessed. Therefore, the apportionment of benefit is reasonably based on the type of parcel, the size of parcels and the population density of parcels. The next step in apportioning assessments is to determine the relative special benefit for each property. This process involves determining the relative benefit received by each property in relation to a single family home, or, in other words, on the basis of Single Family Equivalents ("SFE"). This SFE methodology is commonly used to distribute assessments in proportion to estimated special benefit and is generally recognized as providing the basis for a fair and appropriate distribution of assessments. For the purposes of this Report, all properties are assigned an SFE value, which is each property's relative benefit in relation to a single family home on one parcel. In this case, the "benchmark" property is the single family detached dwelling which is one Single Family Equivalent or one SFE.' RESIDENTIAL PROPERTIES Certain residential properties in the District that contain a single residential dwelling unit are assigned 1.0 SFE. Detached or attached houses and zero -lot line houses are included in this category of single-family residential property. If there is more than one single family detached dwelling on a parcel, it will be charged one SFE per single family detached dwelling. Another residential property type in the District is the condominium. These properties benefit from the Improvements in proportion to the average number of people who reside in multi -family residential units versus the average number of people who reside in a single-family home ("Population Density Factor", or "PDF"). Using the total population of each property type in the City from recent Census data and dividing it by the total number of such households reveals that approximately 3.42 persons occupy each single- family residence, whereas an average of 2.48 persons occupy each condominium. The ratio of 2.48 people (condominium) to 3.42 people (single-family) results in a PDF of 0.73 for condominiums. The PDF of 0.73 for condominiums is applied to certain benefit categories, whereas other benefit categories are applicable to condominiums in full measure. The calculation of the overall SFE factors are summarized below. 9 Method of Apportionment and subsections as detailed in the Fiscal Year 2024/25 Engineer's Report, City of Diamond Bar, Landscaping Assessment District No. 41-2021, dated July 2024 and approved by City Council on June 18, 2024 ("Prior Engineer's Report"J. ��City of Diamond Bar Landscaping Assessment District No. 41-2021-Fiscal Year 2025/26 Engineer's Report 16 CondoBenefit Category Weight SFR PDF SFE Factor PDF SFE Factor Proximity & Access 10% 100% 10% 73% 7.3% Views 10% 100% 10% 73% 7.3% Outdoor Area Extension 10% 100% 10% 73% 7.3% Safety & Security 10% 100% 10% 100% 10% Creation of Lots 60% 100% 60% 100% 60% Total Benefit 100% 100% 92% There are no other multi -family property types (e.g., duplex, triples, fourplex, apartments) in the District, and none are foreseen in the near future. Therefore, no other multi -family assessment rate is calculated. VACANT/UNDEVELOPED PROPERTIES While there are currently no vacant or undeveloped properties in the District, the following discussion is included in the event that properties become vacant in the future. The benefit to undeveloped properties is determined to be proportional to the corresponding benefits for similar type developed properties, but at a lower rate due to the lack of improvements on the property. A measure of the benefits accruing to the underlying land is the average value of land in relation to Improvements for developed property. An analysis of the assessed valuation data from the City found that approximately 45% of the assessed value of improved properties is classified as the land value. It is reasonable to assume, therefore, that approximately 45% of the benefits are related to the underlying land and 55% are related to the improvements and the day-to-day use of the property. Using this ratio, the SFE factor for vacant/undeveloped parcels is 0.45 per parcel. OTHER PROPERTY TYPES Notwithstanding the foregoing discussion, there are four other types of property uses to be considered: Water Utility: The Walnut Valley Water District owns a parcel with two water tanks used to supply water for domestic use and fire protection. This property has no people stationed on -site and derives no benefit in any category. Therefore, it is not assessed. Open Space: The open space parcels that lie within the District are part of the Improvements (views, safety and security, etc,) Therefore, these parcels are not assessed. The property in the District is fully developed, has been stable since its original development in the late 1980s, and is zoned such that a change in the predominately residential land use is not expected in the future. As a result, there is no analysis of type, size, and population densities for other uses such as commercial, industrial, and institutional properties. ��City of Diamond Bar Landscaping Assessment District No. 41-2021-Fiscal Year 2025/26 Engineer's Report 17 5.5 Annual Assessment Calculation The table below shows the calculation of the estimated number of SFEs for Fiscal Year 2025126. The following table shows the calculation of the assessment rate. Balance to Levy Total SFEs Assessment rate per SFE The assessment rate per land use is shown below. 5.6 Cost of Living Inflator $320,681.62 542.48 $591.14 The assessment shall be subject to an adjustment up to a cap of 3%annually, which adjustment shall be based upon actual costs, including any reasonable reserves, supported by a report prepared in accordance with Article XIIID of the California Constitution. If the report does not support an increase or supports a reduction in the assessment, then the assessment shall not be increased or shall be lowered as applicable. 5.7 Duration of Assessment It is proposed that the assessments be continued every year after their formation, 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 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. 5.8 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 Manager or his or her designee. Any such appeal is limited to correction of an assessment Diamond Bar ,.�, � Landscaping Assessment District No. 41-2021-Fiscal Year 2025/26 Engineers Report 18 during the then -current Fiscal Year and applicable law. Upon 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. 41-2021-Fiscal Year 2025/26 Engineer's Report 19 5. ASSESSMENT DIAGRAM 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. �� � �� City of Diamond Bar Landscaping Assessment District No. 41-2021-Fiscal Year 2025/26 Engineer s Report 20 Assessment District #41-2021 for the City of Diamond Bar r' y ' vio was r Legend )i%I flct ` Boundary 40 urI Areas . {0-4 ac) {12 ac) Brush Areas wo { 3 ac) / r f r.idof Areas Ok {25 ac) Goat Arras { /1 a�} ��City of Diamond Bar Landscaping Assessment District No. 41-2021-Fiscal Year 2025/26 Engineer's Report 21 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. 41-2021-Fiscal Year 2025/26 Engineer's Report 22