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HomeMy WebLinkAboutRFP-2025-ASSESSMENT ENGINEER (signed) DEPARTMENT OF PUBLIC WORKS CITY OF DIAMOND BAR CALIFORNIA REQUEST FOR PROPOSALS FOR Landscape Assessment District Engineering Services FEBRUARY 2025 1 of 6 CITY OF DIAMOND BAR REQUEST FOR PROPOSALS (RFP) Date: February 6, 2025 Department: Public Works Project Type: Landscape Assessment District Engineering Services Proposals Due: February 27, 2025 at 2:00 P.M. Project Contact: Nicholas Delgado, Management Analyst (909) 839-7088 / NDelgado@DiamondBarCA.gov INTRODUCTION Incorporated on April 18, 1989, the City of Diamond Bar (“City”) sets against a scenic mountain backdrop on more than 8,000 acres (12.5 sq. miles) of rolling hills and valleys in the East San Gabriel Valley region. Among the amenities that contribute to the high quality of life that is valued by residents are the family-friendly atmosphere; the well-maintained parks, trails and roads; top-rated school Districts; and the unparalleled public safety services which contr ibute to keeping Diamond Bar among the safest communities in the region for the past 30 years. BACKGROUND The City of Diamond Bar, as authorized by the City Council, levies annual assessments for all eligible parcels for the maintenance and improvements of the three (3) separate Landscape Assessment Districts (Nos. 38, 39-2022, and 41-2021). LLAD No. 38 is a citywide district, and assessment funding provides for the maintenance and improvements of the medians and parkways along select arterial roadways. The annual expenses to provide these services generally exceed the revenue, and the City’s general fund subsidizes the cost difference. LLAD Nos. 39-2022 and 41-2021 are districts in residential neighborhoods, and both were recently reformed (as approved by the property owners) with the intention of operating on self-sustainable funding. Annual services are programmed based on the anticipated assessment revenues; the City does not intend to subsidize service expenses for these districts. The Assessment Engineer (“Consultant”) is expected to provide the mini mum required services, further described in this RFP, to update the annual assessments for all LLADs 2 of 6 in compliance with the provisions of the Landscape and Lighting Act of 1972, Proposition 218, Diamond Bar City Code, and all other applicable laws and regulations. TO INTERESTED FIRMS The City of Diamond Bar is inviting qualified firms to submit proposals for Landscape Assessment District Engineering Services for a period of three (3) years, commencing on April 1, 2025 with the option – at the City’s sole discretion – to extend an additional two (2) years upon successful demonstration of contract performance. This contract will be administered by the City’s Public Works Department. SCOPE OF SERVICES The annual scope of services includes, but is not limited to the following tasks: 1. Consultation with City staff to discuss scope, objectives, and deadlines; 2. Review existing methodology for assessment processes; 3. Confirmation of total number of assessable parcels; 4. Provide levy calculations for each tax year; 5. Preparation of Engineer’s Reports (draft/final); 6. Preparation of City Council Resolutions; 7. Preparation of staff reports, presentations, and other documents; 8. Participation in meetings and public hearings; 9. Response to public inquiries and appeals; and, 10. Submit City Council approved Assessment Rolls in the required format to the County of Los Angeles and provide confirmation to the City. Note that this scope is applicable to the separate processes for each of the three (3) existing Landscape Assessment Districts (LLADs Nos. 38, 39 -2022, and 41-2021) and any future districts, as appropriate. The awarded Consultant’s must coordinate with the City to ensure that all invoices are issued in a timely manner (to comply with fiscal year deadlines) and are properly tracked for the work on each separate district. PROPOSAL CONTENT AND FORMAT 1. PROJECT TEAM: Please provide an organizational chart indicating principles and key project team members. Also, provide resumes of the key personnel involved with this contract including personnel from sub-consultants (if any). Identify the experience of the personnel assigned and briefly outline the responsibilities of each member. If any changes in personnel occur during the contract period , the consultant shall notify the City and furnish the same required information. 3 of 6 2. FIRM’S EXPERIENCE/REFERENCES: List a maximum of five (5) public agencies where similar services are being provided. Provide the following information: agency name, project manager's name, and services provided. 3. PROJECT UNDERSTANDING: Describe the approach and methods that will be used to complete work described in the scope of services. Provide enough detail to distinguish the various work required for each task. Also, identify any potential concerns or problems that your firm anticipates during the term of this contract. 4. SCHEDULE: Provide a proposed schedule to accomplish all of the required tasks. Be sure to include time for City review/approval milestones and council meetings. 5. FEE PROPOSAL: Provide an annual “not-to-exceed” for each year to provide the required scope of services, and and state the assumptions whch the estimates are based. Also, provide the hourly rates of all personnel assigned to the contract. These rates may be used to negotiate may work the City may request. Rate increase shall be kept the same for the first three (3) years of the contract and rate increase will be only considered in the year four (4) and year five (5), if an extension is awarded. 6. AGREEMENT: Attachment A is a copy of the City’s Consultant Services Agreement. A statement must be made in the proposal that all terms and conditions are acceptable. No exceptions to this agreement are allowed. GENERAL TERMS AND CONDITIONS 1. Issuance of this Request for Proposals (RFP) and receipt of proposals does not commit the City to award an agreement. The City expressly reserves the right to postpone the bid opening date for its own convenience, to accept or reject any or all bids received in response to this RFP, to negotiate with more than one vendor concurrently, or to cancel all or part of this RFP. 2. The City reserves the right to reduce or revise elements of the scope of work prior to the award of any agreement. Furthermore, the City reserves the right to reject any or all proposals submitted; and no representation is made hereby that any agreement will be awarded pursuant to this Request for Proposals, or otherwise. All costs incurred in the preparation of the proposal, in the submission of additional information and/or in any other aspect of a proposal prior to the award of a written agreement will be borne by the bidder. 3. Proposals shall be submitted on the forms supplied by the City of Diamond Bar and contained herein. 4 of 6 4. All proposals, bids, and quotes must be typewritten or written in ink. No erasures will be permitted. Mistakes may be crossed out and corrections made adjacent. Corrections must be initialed by the person signing the bid. 5. Proposals submitted may be withdrawn by written or email request received by the City before the hour set for opening. After such hour, it may not be withdrawn. 6. The City reserves the right to reject any or all propsals and to waive any informality or technical defect in a proposal. 7. All proposal must be signed by a responsible officer or authorized employee of the firm, giving the firm’s name and address. Obligations assumed by such signature must be fulfilled. 8. Submissions of a signed bid will be interpreted to mean that the bidder has thereby agreed to all of the terms and conditions set forth in the bid package. 9. CONTRACT PERIOD: The term of the contract will be three (3) years with the option of an additional 2-year extension upon performance. At the end of the three (3) year period, firm performance will be reviewed and City will decide to extend the professional service agreement. 10. INVITATION FOR INTERVIEW (OPTIONAL): Firm(s) selected for further consideration for all or parts of the tasks in the scope of work may be contacted to arrange for an interview with City Staff via a virtual meeting platform. Should a firm be asked to participate in the interview, principal and personnel assigned to the City should be available to discuss the following: • Major elements of the proposal; and be prepared to answer any questions raised to clarify in detail, and • Satisfactory performance on similar past/current work and description of previously/current related experience for assigned personnel. 11. SELECTION PROCEDURE: Criteria for evaluation of proposals may include, but need not be limited to, the following: • Responsiveness and comprehensiveness of proposal. • Firm’s and assigned personnels’ experience with the City of Diamond Bar and other public agencies. • Quality of previous work performed by the firm. • Resources and fee required to perform the requested services. • The firm’s comments on the consulting services agreement. • References. 12. RIGHT TO REJECT ALL PROPOSALS: The City reserves the right to reduce or revise elements of the scope of work prior to the award of a contract. Furthermore, 5 of 6 the City reserves the right to reject any proposal and may elect to make a decision without further discussion or negotiation. This solicitation is not to be construed as a contract of any kind. The City is not liable for any costs or expenses incurred in the preparation of the proposals. The right to issue supplementary information or guidelines relating to this request is also reserved by the City. All proposals submitted to the City in response to this RFP shall become property of the City. 13. FEE PROPOAL: A fee proposal shall be submitted separately, including a detailed schedule with all proposed staff, the hours each person will devote to a given task, and all reimbursable services to complete work described in the proposed Scope of Service. The fee proposal(s) shall be uploaded on PlanetBids separately bearing the name, address, and telephone number of the individual or entity submitting the proposal. 14. INSURANCE: Proof of insurance requirements addressed in the professional services agreement of this Request for Proposal shall be submitted by the selected Consultant upon execution of the contract for submittal to the City Council. The selected Consultant must submit a "Statement Certifying Insurance Coverage" certifying that the required insurance coverage will be obtained by the Consultant, and that the Consultant understands said coverage is prerequisite for entering into an agreement with the City. The Consultant is required to confirm with its insurance carrier that it can meet all the requirements for insurance. Failure to meet the insurance regulations as set forth shall result in the Consultant's disqualification. 15. AGREEMENT: A copy of the City’s consultant services agreement can be found as Attachment 1. A statement SHALL be made in the proposal that all terms and conditions including insurance requirements are acceptable. ATTACHMENTS SCHEDULE • ATTACHMENT 1 Sample Contract Agreement • ATTACHMENT 2 LLAD No. 38: FY2024/25 Package • ATTACHMENT 3 LLAD No. 39-2022: FY2024/25 Package • ATTACHMENT 4 LLAD No. 41-2021: FY2024/25 Package RFP SCHEDULE • February 6, 2025 Release of RFP • February 27, 2025 Proposals Due to the City • March 11-19, 2025 Invitation for Interview (Optional) • April 1, 2025 Award of Contract SUBMITTAL OF PROPOSALS 6 of 6 An electronic copy of the proposal, in PDF format, shall be uploaded onto PlanetBids on or before two o’clock (2:00) P.M. on February 27, 2025. Only electronic proposals will be accepted. Use the link below to register: https://www.diamondbarca.gov/712/RFP-RFQ-BID- Opportunities. QUESTIONS Any questions can be posted within the Q&A Section in PlanetBids. Please post all questions no later than 4:00 P.M. on February 20, 2025. Sincerely, David G. Liu, P.E. Director of Public Works/City Engineer RMRA Measure M R Local Return Gas Tax eet Rehab.- Area 1a, 1b, 2 (Design) n) ntain Laurel) anyon to Lemon) to BCY) 82,779$ 82,779$ om Pathfinder to Mountain Laurel Way) (Const.)1,200,000$ 1,200,000$ eet Rehab - Area 1 (Const.)2,000,000$ 925,000$ 850,000$ 89,0 $ en Springs from Brea Canyon to Lemon Ave.) (Const.)900,000$ 500,000$ mp Project (Const.)177,855$ nt Projects 4,360,634$ 1,700,000$ 1,007,779$ 850,000$ 89,0 $ 250-5510-46412) Project Description Total FY Budget (109) Measure M (111) Gas Tax (112) Prop A (113) Prop C Sign and HSL Replacement (Design)50,000$ 50,000$ Sign and HSL Replacement (Construction)350,000$ 350,000$ al 11 Locations (Design and Construction)380,000$ 90,000$ 100,000$ 190,0 $ 780,000$ 350,000$ 140,000$ 100,000$ 190,0 $ ments (250-5510-46413) Project Description Total FY Budget (113) Prop C Foothill Transit Grant 60,000$ 60,000$ SD/Calbourne 40,000$ 40,000$ nfrastructure Improvements 100,000$ 60,000$ 40,000$ 0-5510-46420) Project Description Total FY Budget (107) Measure W (108) RMRA (109) Measure M (113) Prop C ovements-Phase 3 (Flapjack-Design)65,000$ 65,000$ ATTACHMENT 1 SAMPLE CONTRACT AGREEMENT 1 Professional Services - Design 1614063.1 CONSULTING SERVICES AGREEMENT Design Professional THIS AGREEMENT (the "Agreement") is made as of , 2025 by and between the City of Diamond Bar, a municipal corporation ("City") and ___________, a [Insert the type of entity of the Consultant, e.g., Inc., a California corporation; a California general partnership; a California limited liability company; a sole proprietor; etc.] ("Consultant"). 1. Consultant's Services. Subject to the terms and conditions set forth in this Agreement Consultant shall provide to the reasonable satisfaction of the City the [describe general type, i.e., architecture] services set forth in the attached Exhibit "A", which is incorporated herein by this reference. As a material inducement to the City to enter into this Agreement, Consultant represents and warrants that it has thoroughly investigated the work and fully understands the difficulties and restrictions in performing the work. Consultant represents that it is fully qualified to perform such consulting services by virtue of its experience and the training, education and expertise of its principals and employees. Nicholas Delgado, Management Analyst (herein referred to as the “City’s Project Manager”), shall be the person to whom the Consultant will report for the performance of services hereunder. It is understood that Consultant shall coordinate its services hereunder with the City’s Project Manager to the extent required by the City’s Project Manager, and that all performances required hereunder by Consultant shall be performed to the satisfaction of the City’s Project Manager and the City Manager 2. Term of Agreement. This Agreement shall take effect ___________, 2025, and shall continue until unless earlier terminated pursuant to the provisions herein. [Optional Language for Extensions] The City Manager shall have the option to extend this Agreement for [describe extension option, e.g., two (2) additional two (2) year terms.], subject to the same terms and conditions contained herein, by giving Consultant written notice of the exercise of this option at least thirty (30) days prior to the expiration of the initial Term. In the event the City exercises its option to extend the Term, Consultant's compensation shall be subject to an adjustment upon the effective date of extension as follows: Any increase in compensation will be negotiated between the City and the Consultant, but in no event shall the increase exceed the amount that the Consumer Price Index ("CPI") for the Los Angeles-Anaheim-Riverside metropolitan area for the month immediately preceding the Adjustment Date (the "Index Month") as reported by the Bureau of Labor Statistics of the United States Department of Labor, has increased over the CPI for the month one year prior to the Index Month. 2 Professional Services - Design 1614063.1 3. Compensation. City agrees to compensate Consultant for each service which Consultant performs to the satisfaction of City in compliance with the scope of services set forth in Exhibit "A". Payment will be made only after submission of proper invoices in the form specified by City. Total payment to Consultant pursuant to this Agreement shall not exceed [Spell out dollar amount] ($ ) without the prior written consent of the City. The above not to exceed amount shall include all costs, including, but not limited to, all clerical, administrative, overhead, telephone, travel and all related expenses. 4. Payment. A. As scheduled services are completed, Consultant shall submit to City an invoice for the services completed, authorized expenses and authorized extra work actually performed or incurred. B. All such invoices shall state the basis for the amount invoiced, including services completed, the number of hours spent, and any extra work performed. C. City will pay Consultant the amount properly invoiced within 35 days of receipt, but may withhold 30% of any invoice until all work is completed, which sum shall be paid within 35 days of completion of the work and receipt of all deliverables . [Optional to include withhold-typically would if a deliverable was involved, such as software or a report] D. Payment shall constitute payment in full for all services, authorized costs and authorized extra work covered by that invoice. 5. Change Orders. No payment for extra services caused by a change in the scope or complexity of work, or for any other reason, shall be made unless and until such extra services and a price therefore have been previously authorized in writing and approved by the City Manager or his designee as an amendment to this Agreement. The amendment shall set forth the changes of work, extension of time , if any, and adjustment of the fee to be paid by City to Consultant. 6. Priority of Documents. In the event of any inconsistency between the provisions of this Agreement and any attached exhibits, the provisions of this Agreement shall control. [If more than one exhibit, determine if one should control over other, i.e. City's Request for Proposal, Consultant Proposal. Language would be along the following lines: "In the event of any inconsistency between this Agreement and the attached exhibits, the following order of precedence shall apply: (a) This Agreement; (b) The City's Request for Proposal, dated _____; and (c) Consultant's Proposal dated ______.] 7. Status as Independent Contractor. 3 Professional Services - Design 1614063.1 A. Consultant is, and shall at all times remain as to City, a wholly independent contractor. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise act on behalf of City as an agent. Neither City nor any of its agents shall have control over the conduct of Consultant or any of Consultant's employees, except as set forth in this Agreement. Consultant shall not, at any time, or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of City. B. Consultant agrees to pay all required taxes on amounts paid to Consultant under this Agreement, and to indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. In the event that City is audited by any Federal, State agency, including the Public Employee Retirement System, regarding the independent contractor status of Consultant and the audit in any way fails to sustain the validity of a wholly independent contractor relationship between City and Consultant, its employees or subconsultants, then Consultant agrees to reimburse City for all costs, including accounting and attorney's fees, arising out of such audit and any appeals relating thereto. C. Consultant shall fully comply with Workers' Compensation laws regarding Consultant and Consultant's employees. Consultant further agrees to indemnify and hold City harmless from any failure of Consultant to comply with applicable Worker's Compensation laws. D. Consultant shall, at Consultant’s sole cost and expense fully secure and comply with all federal, state and local governmental permit or licensing requirements, including but not limited to a business license with the City of Diamond. E. In addition to any other remedies it may have, City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant's failure to promptly pay to City any reimbursement or indemnification required by this Agreement or for any amount or penalty levied against the City for Consultant’s failure to comply with this Section. 8. Standard of Performance. Consultant shall perform all work at the standard of care and skill ordinarily exercised by members of the profession under similar conditions and represents that it and any subcontractors it may engage, possess any and all licenses which are required to perform the work contemplated by this Agreement and shall maintain all appropriate licenses during the performance of the work. 9. Indemnification. To the maximum extent permitted by Civil Code section 2782.8, Consultant shall defend, indemnify and hold harmless City, its officers, officials, employees and volunteers ("Indemnitees") from and against all liability, loss, damage, expense, cost (including without limitation reasonable attorneys' fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with: 4 Professional Services - Design 1614063.1 (1) Any and all claims under Worker’s Compensation acts and other employee benefit acts with respect to Consultant’s employees or Consultant’s contractors; (2) Any and all claims arising out of Consultant's performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement. Should City in its sole discretion find Consultant’s legal counsel unacceptable, then Consultant shall reimburse the City its costs of defense, including without limitation reasonable attorneys' fees, expert fees and all other costs and fees of litigation. The Consultant shall promptly pay any final judgment rendered against the Indemnitees. Except for the Indemnitees, this Agreement shall not be construed to extend to any third -party indemnification rights of any kind; and (3) Any and all claims for loss, injury to or death of persons or damage to property caused by the negligent professional act or omission in the performance of professional services pursuant to this Agreement. (4) The Consultant's obligations to indemnify, defend and hold harmless the City shall survive termination of this Agreement. 10. Insurance. A. Consultant shall at all times during the term of this Agreement carry, maintain, and keep in full force and effect, with an insurance company authorized to do business in the State of California and approved by the City the following insurance: (1) a policy or policies of broad-form comprehensive general liability insurance written on an occurrence basis with minimum limits of $1,000,000.00 combined single limit coverage against any injury, death, loss or damage as a result of wrongful or negligent acts by Consultant, its officers, employees, agents, and independent contractors in performance of services under this Agreement; (2) property damage insurance with a minimum limit of $500,000.00 per occurrence; (3) automotive liability insurance written on an occurrence basis covering all owned, non-owned and hired automobiles, with minimum combined single limits coverage of $1,000,000.00; (4) Worker's Compensation insurance when required by law, with a minimum limit of $500,000.00 or the amount required by law, whichever is greater; [Note: Does not apply to a sole proprietor, i.e., a Consultant with no employees but can leave in as it states "when required by law."] and (5) Professional liability insurance covering errors and omissions arising out of the performance of this Agreement with a combined single limit of $1,000,000. If such insurance is on a claims’ made basis, Consultant agrees to keep such insurance in 5 Professional Services - Design 1614063.1 full force and effect for at least five years after termination or date of completion of this Agreement. B. The City, its officers, employees, agents, and volunteers shall be named as additional insureds on the policies as to comprehensive general liability, property damage, and automotive liability. The policies as to comprehensive general liability, property damage, and automobile liability shall provide that they are primary, and that any insurance maintained by the City shall be excess insurance only. [If Consultant's work does not require Consultant to come onto City property except for perhaps site visits and meetings, City can be flexible with insurance, including need to be additional insureds and with cancellation provision in Section 10.C below. If Consultant works off-site and simply delivers a report or product, insurance may be waived altogether, except for Workers' Compensation] C. All insurance policies shall provide that the insurance coverage shall not be non-renewed, canceled, reduced, or otherwise modified (except through the addition of additional insureds to the policy) by the insurance carrier without the insurance carrier giving City ten (10) day's prior written notice thereof. Consultant agrees that it will not cancel, reduce or otherwise modify the insurance coverage and in the event of any of the same by the insurer to immediately notify the City. D. All policies of insurance shall cover the obligations of Consultant pursuant to the terms of this Agreement and except for professional liability insurance, shall be issued by an insurance company which is authorized to do business in the State of California or which is approved in writing by the City; and shall be placed have a current A.M. Best's rating of no less than A-, VII. In the case of professional liability insurance, such coverage shall be issued by companies either licensed or admitted to conduct business in the State of California so long as such insurers possesses the aforementioned Best's rating. E. Consultant shall submit to City (1) insurance certificates indicating compliance with the minimum insurance requirements above, and (2) insurance policy endorsements or a copy of the insurance policy evidencing the additional insured requirements in this Agreement, in a form acceptable to the City. F. Self-Insured Retention/Deductibles. All policies required by this Agreement shall allow City, as additional insured, to satisfy the self-insured retention (“SIR”) and/or deductible of the policy in lieu of the Consultant (as the named insured) should Consultant fail to pay the SIR or deductible requirements. The amount of the SIR or deductible shall be subject to the approval of the City. Consultant understands and agrees that satisfaction of this requirement is an express condition precedent to the effectiveness of this Agreement. Failure by Consultant as primary insured to pay its SIR or deductible constitutes a material breach of this Agreement. Should City pay the SIR or deductible on Consultant’s due to such failure in order to secure defense and indemnification as an additional insured under the policy, City may include such amounts as damages in any action against Consultant for breach of this Agreement in addition to any other damages incurred by City due to the breach. 6 Professional Services - Design 1614063.1 G. Subrogation. With respect to any Workers' Compensation Insurance or Employer's Liability Insurance, the insurer shall waive all rights of subrogation and contribution it may have against the Indemnitees. H. Failure to Maintain Insurance. If Contractor fails to keep the insurance required under this Agreement in full force and effect, City may take out the necessary insurance and any premiums paid, plus 10% administrative overhead, shall be paid by Consultant, which amounts may be deducted from any payments due Consultant. I. Consultant shall include all subcontractors, if any, as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor to the City for review and approval. All insurance for subcontractors shall be subject to all of the requirements stated herein. 11. Confidentiality. Consultant in the course of its duties may have access to confidential data of City, private individuals, or employees of the City. Consultant covenants that all data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without written authorization by City. City shall grant such authorization if disclosure is required by law. All City data shall be returned to City upon the termination of this Agreement. Consultant's covenant under this section shall survive the termination of this Agreement. Notwithstanding the foregoing, to the extent Consultant prepares reports of a proprietary nature specifically for and in connection with certain projects, the City shall not, except with Consultant's prior written consent, use the same for other unrelated projects. 12. Ownership of Materials. Except as specifically provided in this Agreement, all materials provided by Consultant in the performance of this Agreement shall be and remain the property of City without restriction or limitation upon its use or dissemination by City. Consultant may, however, make and retain such copies of said documents and materials as Consultant may desire. 13. Maintenance and Inspection of Records. In accordance with generally accepted accounting principles, Consultant and its subcontractors shall maintain reasonably full and complete books, documents, papers, accounting records, and other information (collectively, the “records”) pertaining to the costs of and completion of services performed under this Agreement. The City and any of their authorized representatives shall have access to and the right to audit and reproduce any of Consultant's records regarding the services provided under this Agreement. Consultant shall maintain all such records for a period of at least three (3) years after termination or completion of this Agreement. Consultant agrees to make available all such records for inspection or audit at its offices during normal business hours and upon three (3) days' notice from the City, and copies thereof shall be furnished if requested. 14. Conflict of Interest. 7 Professional Services - Design 1614063.1 A. Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the services to be performed by Consultant under this Agreement, or which would conflict in any manner with the performance of its services hereunder. Consultant further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, Consultant shall avoid the appearance of having any interest which would conflict in any manner with the performance of its services pursuant to this Agreement. B. Consultant covenants not to give or receive any compensation, monetary or otherwise, to or from the ultimate vendor(s) of hardware or software to City as a result of the performance of this Agreement. Consultant's covenant under this section shall survive the termination of this Agreement. 15. Termination. The City may terminate this Agreement with or without cause upon fifteen (15) days' written notice to Consultant. The effective date of termination shall be upon the date specified in the notice of termination, or, in the event no date is specified, upon the fifteenth (15th) day following mailing of the notice. In the event of such termination, City agrees to pay Consultant for services satisfactorily rendered prior to the effective date of termination. Immediately upon receiving written notice of termination, Consultant shall discontinue performing services, unless the notice provides otherwise, except those services reasonably necessary to effectuate the termination. The City shall be not liable for any claim of lost profits. 16. Personnel/Designated Person. Consultant represents that it has, or will secure at its own expense, all personnel required to perform the services under this Agreement. All of the services required under this Agreement will be performed by Consultant or under its supervision, and all personnel engaged in the work shall be qualified to perform such services. [If it is important that a specific person perform the work include the following] Except as otherwise authorized by the City's Project Manager, [If applicable, name of designated person] shall be the person who primarily performs the work provided under this Agreement. Except as provided in this Agreement, Consultant reserves the right to determine the assignment of its own employees to the performance of Consultant's services under this Agreement, but City reserves the right in its sole discretion to require Consultant to exclude any employee from performing services on City's premises. 17. Non-Discrimination and Equal Employment Opportunity. A. Consultant shall not discriminate as to race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition, or sexual orientation, in the performance of its services and duties pursuant to this Agreement, and will comply with all rules and regulations of City relating thereto. Such nondiscrimination shall include but not be limited to the following: employment, upgrading, demotion, transfers, recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. 8 Professional Services - Design 1614063.1 B. Consultant will, in all solicitations or advertisements for employees placed by or on behalf of Consultant state either that it is an equal opportunity employer or that all qualified applicants will receive consideration for employment without regard to race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition, or sexual orientation. C. Consultant will cause the foregoing provisions to be inserted in all subcontracts for any work covered by this Agreement except contracts or subcontracts for standard commercial supplies or raw materials. 18. Time of Completion. Consultant agrees to commence the work provided for in this Agreement within (5) days of being notified by the City to proceed and to diligently prosecute completion of the work within ________ (__) calendar days from such date or as may otherwise be agreed to by and between the Project Manager and the Consultant. [Optional to include time of completion, but if it is important for City to have the work done within a specific time include.] 19. Time Is of the Essence. Time is of the essence in this Agreement. Consultant shall do all things necessary and incidental to the prosecution of Consultant's work. 20. Liquidated Damages. Consultant shall pay City, or have withheld from monies due it, as liquidated damages, the sum of _______ Dollars ($___) per day for each and every calendar day's delay in finishing the work within the time specified, including any written extensions which may be granted, in writing, in accordance with this Agreement. [Optional, include in situations in which untimely delivery of a product or service would interfere with City's ability to serve its constituents or cause project delay. Must have Sections 18 and 19 above to include.] 21. Delays and Extensions of Time. Consultant's sole remedy for delays outside its control shall be an extension of time. No matter what the cause of the delay, Consultant must document any delay and request an extension of time in writing at the time of the delay to the satisfaction of City. Any extensions granted shall be limited to the length of the delay outside Consultant’s control. If Consultant believes that delays caused by the City will cause it to incur additional costs, it must specify, in writing, why the delay has caused additional costs to be incurred and the exact amount of such cost within 10 days of the time the delay occurs. No additional costs can be paid that exceed the not to exceed amount absent a written amendment to this Agreement. In no event shall the Consultant be entitled to any claim for lost profits due to any delay, whether caused by the City or due to some other cause. 22. Assignment. Consultant shall not assign or transfer any interest in this Agreement nor the performance of any of Consultant's obligations hereunder, without the prior written consent of City, and any attempt by Consultant to so assign this Agreement or any rights, duties, or obligations arising hereunder shall be void and of no effect. 9 Professional Services - Design 1614063.1 23. Compliance with Laws. Consultant shall comply with all applicable laws, ordinances, codes and regulations of the federal, state, and local governments. 24. Non-Waiver of Terms, Rights and Remedies. Waiver by either party of any one or more of the conditions of performance under this Agreement shall not be a waiver of any other condition of performance under this Agreement. In no event shall the making by City of any payment to Consultant constitute or be construed as a waiver by City of any breach of covenant, or any default which may then exist on the part of Consultant, and the making of any such payment by City shall in no way impair or prejudice any right or remedy available to City with regard to such breach or default. 25. Attorney's Fees. In the event that either party to this Agreement shall commence any legal or equitable action or proceeding to enforce or interpret the provisions of this Agreement, the prevailing party in such action or proceeding shall be entitled to recover its costs of suit, including reasonable attorney's fees and costs, including costs of expert witnesses and consultants. 26. Mediation. Any dispute or controversy arising under this Agreement, or in connection with any of the terms and conditions hereof, which cannot be resolved by the parties, may be referred by the parties hereto for mediation. A third party, neutral mediation service shall be selected, as agreed upon by the parties and the costs and expenses thereof shall be borne equally by the parties hereto. The parties agree to utilize their good faith efforts to resolve any such dispute or controversy so submitted to mediation. It is specifically understood and agreed by the parties hereto that mutual good faith efforts to resolve the same any dispute or controversy as provided herein, shall be a condition precedent to the institution of any action or proceeding, whether at law or in equity with respect to any such dispute or controversy. 26. Notices. Any notices, bills, invoices, or reports required by this Agreement shall be deemed received on (a) the day of delivery if delivered by hand during regular business hours or by facsimile before or during regular business hours; or (b) on the third business day following deposit in the United States mail, postage prepaid, to the addresses heretofore set forth in the Agreement, or to such other addresses as the parties may, from time to time, designate in writing pursuant to the provisions of this section. “CONSULTANT” “CITY” City of Diamond Bar 21810 Copley Drive Diamond Bar, CA 91765-4178 Attn.: Attn.: _______________ Phone: Phone: E-Mail: E-mail: 10 Professional Services - Design 1614063.1 28. Governing Law. This Agreement shall be interpreted, construed and enforced in accordance with the laws of the State of California. 29. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be the original, and all of which together shall constitute one and the same instrument. 30. Entire Agreement. This Agreement, and any other documents incorporated herein by reference, represent the entire and integrated agreement between Consultant and City. This Agreement supersedes all prior oral or written negotiations, representations or agreements. This Agreement may not be amended, nor any provision or breach hereof waived, except in a writing signed by the parties which expressly refers to this Agreement. Amendments on behalf of the City will only be valid if signed by a person duly authorized to do so under the City's Purchasing Ordinance. IN WITNESS of this Agreement, the parties have executed this Agreement as of the date first written above. "Consultant" "City" [Insert Full Name of Consultant] CITY OF DIAMOND BAR By: By: Printed Name: Dan Fox, City Manager Title: By: ATTEST: Printed Name: Title: Kristina Santana, City Clerk Approved as to form: By: Omar Sandoval, City Attorney *NOTE: If Consultant is a corporation, the City requires the following signature(s): -- (1) the Chairman of the Board, the President or a Vice-President, AND (2) the Secretary, the Chief Financial Officer, the Treasurer, an Assistant Secretary or an Assistant Treasurer. If only one corporate officer exists or one corporate officer holds more than one corporate office, please so indicate. OR 11 Professional Services - Design 1614063.1 -- The corporate officer named in a corporate resolution as authorized to enter into this Agreement. A copy of the corporate resolution, certified by the Secretary close in time to the execution of the Agreement, must be provided to the City. ATTACHMENT 2 LLAD NO. 38: FY2024/25 PACKAGE 1 Professional Services - Design 1614063.1 CONSULTING SERVICES AGREEMENT Design Professional THIS AGREEMENT (the "Agreement") is made as of , 2025 by and between the City of Diamond Bar, a municipal corporation ("City") and ___________, a [Insert the type of entity of the Consultant, e.g., Inc., a California corporation; a California general partnership; a California limited liability company; a sole proprietor; etc.] ("Consultant"). 1. Consultant's Services. Subject to the terms and conditions set forth in this Agreement Consultant shall provide to the reasonable satisfaction of the City the [describe general type, i.e., architecture] services set forth in the attached Exhibit "A", which is incorporated herein by this reference. As a material inducement to the City to enter into this Agreement, Consultant represents and warrants that it has thoroughly investigated the work and fully understands the difficulties and restrictions in performing the work. Consultant represents that it is fully qualified to perform such consulting services by virtue of its experience and the training, education and expertise of its principals and employees. Nicholas Delgado, Management Analyst (herein referred to as the “City’s Project Manager”), shall be the person to whom the Consultant will report for the performance of services hereunder. It is understood that Consultant shall coordinate its services hereunder with the City’s Project Manager to the extent required by the City’s Project Manager, and that all performances required hereunder by Consultant shall be performed to the satisfaction of the City’s Project Manager and the City Manager 2. Term of Agreement. This Agreement shall take effect ___________, 2025, and shall continue until unless earlier terminated pursuant to the provisions herein. [Optional Language for Extensions] The City Manager shall have the option to extend this Agreement for [describe extension option, e.g., two (2) additional two (2) year terms.], subject to the same terms and conditions contained herein, by giving Consultant written notice of the exercise of this option at least thirty (30) days prior to the expiration of the initial Term. In the event the City exercises its option to extend the Term, Consultant's compensation shall be subject to an adjustment upon the effective date of extension as follows: Any increase in compensation will be negotiated between the City and the Consultant, but in no event shall the increase exceed the amount that the Consumer Price Index ("CPI") for the Los Angeles-Anaheim-Riverside metropolitan area for the month immediately preceding the Adjustment Date (the "Index Month") as reported by the Bureau of Labor Statistics of the United States Department of Labor, has increased over the CPI for the month one year prior to the Index Month. 2 Professional Services - Design 1614063.1 3. Compensation. City agrees to compensate Consultant for each service which Consultant performs to the satisfaction of City in compliance with the scope of services set forth in Exhibit "A". Payment will be made only after submission of proper invoices in the form specified by City. Total payment to Consultant pursuant to this Agreement shall not exceed [Spell out dollar amount] ($ ) without the prior written consent of the City. The above not to exceed amount shall include all costs, including, but not limited to, all clerical, administrative, overhead, telephone, travel and all related expenses. 4. Payment. A. As scheduled services are completed, Consultant shall submit to City an invoice for the services completed, authorized expenses and authorized extra work actually performed or incurred. B. All such invoices shall state the basis for the amount invoiced, including services completed, the number of hours spent, and any extra work performed. C. City will pay Consultant the amount properly invoiced within 35 days of receipt, but may withhold 30% of any invoice until all work is completed, which sum shall be paid within 35 days of completion of the work and receipt of all deliverables . [Optional to include withhold-typically would if a deliverable was involved, such as software or a report] D. Payment shall constitute payment in full for all services, authorized costs and authorized extra work covered by that invoice. 5. Change Orders. No payment for extra services caused by a change in the scope or complexity of work, or for any other reason, shall be made unless and until such extra services and a price therefore have been previously authorized in writing and approved by the City Manager or his designee as an amendment to this Agreement. The amendment shall set forth the changes of work, extension of time , if any, and adjustment of the fee to be paid by City to Consultant. 6. Priority of Documents. In the event of any inconsistency between the provisions of this Agreement and any attached exhibits, the provisions of this Agreement shall control. [If more than one exhibit, determine if one should control over other, i.e. City's Request for Proposal, Consultant Proposal. Language would be along the following lines: "In the event of any inconsistency between this Agreement and the attached exhibits, the following order of precedence shall apply: (a) This Agreement; (b) The City's Request for Proposal, dated _____; and (c) Consultant's Proposal dated ______.] 7. Status as Independent Contractor. 3 Professional Services - Design 1614063.1 A. Consultant is, and shall at all times remain as to City, a wholly independent contractor. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise act on behalf of City as an agent. Neither City nor any of its agents shall have control over the conduct of Consultant or any of Consultant's employees, except as set forth in this Agreement. Consultant shall not, at any time, or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of City. B. Consultant agrees to pay all required taxes on amounts paid to Consultant under this Agreement, and to indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. In the event that City is audited by any Federal, State agency, including the Public Employee Retirement System, regarding the independent contractor status of Consultant and the audit in any way fails to sustain the validity of a wholly independent contractor relationship between City and Consultant, its employees or subconsultants, then Consultant agrees to reimburse City for all costs, including accounting and attorney's fees, arising out of such audit and any appeals relating thereto. C. Consultant shall fully comply with Workers' Compensation laws regarding Consultant and Consultant's employees. Consultant further agrees to indemnify and hold City harmless from any failure of Consultant to comply with applicable Worker's Compensation laws. D. Consultant shall, at Consultant’s sole cost and expense fully secure and comply with all federal, state and local governmental permit or licensing requirements, including but not limited to a business license with the City of Diamond. E. In addition to any other remedies it may have, City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant's failure to promptly pay to City any reimbursement or indemnification required by this Agreement or for any amount or penalty levied against the City for Consultant’s failure to comply with this Section. 8. Standard of Performance. Consultant shall perform all work at the standard of care and skill ordinarily exercised by members of the profession under similar conditions and represents that it and any subcontractors it may engage, possess any and all licenses which are required to perform the work contemplated by this Agreement and shall maintain all appropriate licenses during the performance of the work. 9. Indemnification. To the maximum extent permitted by Civil Code section 2782.8, Consultant shall defend, indemnify and hold harmless City, its officers, officials, employees and volunteers ("Indemnitees") from and against all liability, loss, damage, expense, cost (including without limitation reasonable attorneys' fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with: 4 Professional Services - Design 1614063.1 (1) Any and all claims under Worker’s Compensation acts and other employee benefit acts with respect to Consultant’s employees or Consultant’s contractors; (2) Any and all claims arising out of Consultant's performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement. Should City in its sole discretion find Consultant’s legal counsel unacceptable, then Consultant shall reimburse the City its costs of defense, including without limitation reasonable attorneys' fees, expert fees and all other costs and fees of litigation. The Consultant shall promptly pay any final judgment rendered against the Indemnitees. Except for the Indemnitees, this Agreement shall not be construed to extend to any third -party indemnification rights of any kind; and (3) Any and all claims for loss, injury to or death of persons or damage to property caused by the negligent professional act or omission in the performance of professional services pursuant to this Agreement. (4) The Consultant's obligations to indemnify, defend and hold harmless the City shall survive termination of this Agreement. 10. Insurance. A. Consultant shall at all times during the term of this Agreement carry, maintain, and keep in full force and effect, with an insurance company authorized to do business in the State of California and approved by the City the following insurance: (1) a policy or policies of broad-form comprehensive general liability insurance written on an occurrence basis with minimum limits of $1,000,000.00 combined single limit coverage against any injury, death, loss or damage as a result of wrongful or negligent acts by Consultant, its officers, employees, agents, and independent contractors in performance of services under this Agreement; (2) property damage insurance with a minimum limit of $500,000.00 per occurrence; (3) automotive liability insurance written on an occurrence basis covering all owned, non-owned and hired automobiles, with minimum combined single limits coverage of $1,000,000.00; (4) Worker's Compensation insurance when required by law, with a minimum limit of $500,000.00 or the amount required by law, whichever is greater; [Note: Does not apply to a sole proprietor, i.e., a Consultant with no employees but can leave in as it states "when required by law."] and (5) Professional liability insurance covering errors and omissions arising out of the performance of this Agreement with a combined single limit of $1,000,000. If such insurance is on a claims’ made basis, Consultant agrees to keep such insurance in 5 Professional Services - Design 1614063.1 full force and effect for at least five years after termination or date of completion of this Agreement. B. The City, its officers, employees, agents, and volunteers shall be named as additional insureds on the policies as to comprehensive general liability, property damage, and automotive liability. The policies as to comprehensive general liability, property damage, and automobile liability shall provide that they are primary, and that any insurance maintained by the City shall be excess insurance only. [If Consultant's work does not require Consultant to come onto City property except for perhaps site visits and meetings, City can be flexible with insurance, including need to be additional insureds and with cancellation provision in Section 10.C below. If Consultant works off-site and simply delivers a report or product, insurance may be waived altogether, except for Workers' Compensation] C. All insurance policies shall provide that the insurance coverage shall not be non-renewed, canceled, reduced, or otherwise modified (except through the addition of additional insureds to the policy) by the insurance carrier without the insurance carrier giving City ten (10) day's prior written notice thereof. Consultant agrees that it will not cancel, reduce or otherwise modify the insurance coverage and in the event of any of the same by the insurer to immediately notify the City. D. All policies of insurance shall cover the obligations of Consultant pursuant to the terms of this Agreement and except for professional liability insurance, shall be issued by an insurance company which is authorized to do business in the State of California or which is approved in writing by the City; and shall be placed have a current A.M. Best's rating of no less than A-, VII. In the case of professional liability insurance, such coverage shall be issued by companies either licensed or admitted to conduct business in the State of California so long as such insurers possesses the aforementioned Best's rating. E. Consultant shall submit to City (1) insurance certificates indicating compliance with the minimum insurance requirements above, and (2) insurance policy endorsements or a copy of the insurance policy evidencing the additional insured requirements in this Agreement, in a form acceptable to the City. F. Self-Insured Retention/Deductibles. All policies required by this Agreement shall allow City, as additional insured, to satisfy the self-insured retention (“SIR”) and/or deductible of the policy in lieu of the Consultant (as the named insured) should Consultant fail to pay the SIR or deductible requirements. The amount of the SIR or deductible shall be subject to the approval of the City. Consultant understands and agrees that satisfaction of this requirement is an express condition precedent to the effectiveness of this Agreement. Failure by Consultant as primary insured to pay its SIR or deductible constitutes a material breach of this Agreement. Should City pay the SIR or deductible on Consultant’s due to such failure in order to secure defense and indemnification as an additional insured under the policy, City may include such amounts as damages in any action against Consultant for breach of this Agreement in addition to any other damages incurred by City due to the breach. 6 Professional Services - Design 1614063.1 G. Subrogation. With respect to any Workers' Compensation Insurance or Employer's Liability Insurance, the insurer shall waive all rights of subrogation and contribution it may have against the Indemnitees. H. Failure to Maintain Insurance. If Contractor fails to keep the insurance required under this Agreement in full force and effect, City may take out the necessary insurance and any premiums paid, plus 10% administrative overhead, shall be paid by Consultant, which amounts may be deducted from any payments due Consultant. I. Consultant shall include all subcontractors, if any, as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor to the City for review and approval. All insurance for subcontractors shall be subject to all of the requirements stated herein. 11. Confidentiality. Consultant in the course of its duties may have access to confidential data of City, private individuals, or employees of the City. Consultant covenants that all data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without written authorization by City. City shall grant such authorization if disclosure is required by law. All City data shall be returned to City upon the termination of this Agreement. Consultant's covenant under this section shall survive the termination of this Agreement. Notwithstanding the foregoing, to the extent Consultant prepares reports of a proprietary nature specifically for and in connection with certain projects, the City shall not, except with Consultant's prior written consent, use the same for other unrelated projects. 12. Ownership of Materials. Except as specifically provided in this Agreement, all materials provided by Consultant in the performance of this Agreement shall be and remain the property of City without restriction or limitation upon its use or dissemination by City. Consultant may, however, make and retain such copies of said documents and materials as Consultant may desire. 13. Maintenance and Inspection of Records. In accordance with generally accepted accounting principles, Consultant and its subcontractors shall maintain reasonably full and complete books, documents, papers, accounting records, and other information (collectively, the “records”) pertaining to the costs of and completion of services performed under this Agreement. The City and any of their authorized representatives shall have access to and the right to audit and reproduce any of Consultant's records regarding the services provided under this Agreement. Consultant shall maintain all such records for a period of at least three (3) years after termination or completion of this Agreement. Consultant agrees to make available all such records for inspection or audit at its offices during normal business hours and upon three (3) days' notice from the City, and copies thereof shall be furnished if requested. 14. Conflict of Interest. 7 Professional Services - Design 1614063.1 A. Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the services to be performed by Consultant under this Agreement, or which would conflict in any manner with the performance of its services hereunder. Consultant further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, Consultant shall avoid the appearance of having any interest which would conflict in any manner with the performance of its services pursuant to this Agreement. B. Consultant covenants not to give or receive any compensation, monetary or otherwise, to or from the ultimate vendor(s) of hardware or software to City as a result of the performance of this Agreement. Consultant's covenant under this section shall survive the termination of this Agreement. 15. Termination. The City may terminate this Agreement with or without cause upon fifteen (15) days' written notice to Consultant. The effective date of termination shall be upon the date specified in the notice of termination, or, in the event no date is specified, upon the fifteenth (15th) day following mailing of the notice. In the event of such termination, City agrees to pay Consultant for services satisfactorily rendered prior to the effective date of termination. Immediately upon receiving written notice of termination, Consultant shall discontinue performing services, unless the notice provides otherwise, except those services reasonably necessary to effectuate the termination. The City shall be not liable for any claim of lost profits. 16. Personnel/Designated Person. Consultant represents that it has, or will secure at its own expense, all personnel required to perform the services under this Agreement. All of the services required under this Agreement will be performed by Consultant or under its supervision, and all personnel engaged in the work shall be qualified to perform such services. [If it is important that a specific person perform the work include the following] Except as otherwise authorized by the City's Project Manager, [If applicable, name of designated person] shall be the person who primarily performs the work provided under this Agreement. Except as provided in this Agreement, Consultant reserves the right to determine the assignment of its own employees to the performance of Consultant's services under this Agreement, but City reserves the right in its sole discretion to require Consultant to exclude any employee from performing services on City's premises. 17. Non-Discrimination and Equal Employment Opportunity. A. Consultant shall not discriminate as to race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition, or sexual orientation, in the performance of its services and duties pursuant to this Agreement, and will comply with all rules and regulations of City relating thereto. Such nondiscrimination shall include but not be limited to the following: employment, upgrading, demotion, transfers, recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. 8 Professional Services - Design 1614063.1 B. Consultant will, in all solicitations or advertisements for employees placed by or on behalf of Consultant state either that it is an equal opportunity employer or that all qualified applicants will receive consideration for employment without regard to race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition, or sexual orientation. C. Consultant will cause the foregoing provisions to be inserted in all subcontracts for any work covered by this Agreement except contracts or subcontracts for standard commercial supplies or raw materials. 18. Time of Completion. Consultant agrees to commence the work provided for in this Agreement within (5) days of being notified by the City to proceed and to diligently prosecute completion of the work within ________ (__) calendar days from such date or as may otherwise be agreed to by and between the Project Manager and the Consultant. [Optional to include time of completion, but if it is important for City to have the work done within a specific time include.] 19. Time Is of the Essence. Time is of the essence in this Agreement. Consultant shall do all things necessary and incidental to the prosecution of Consultant's work. 20. Liquidated Damages. Consultant shall pay City, or have withheld from monies due it, as liquidated damages, the sum of _______ Dollars ($___) per day for each and every calendar day's delay in finishing the work within the time specified, including any written extensions which may be granted, in writing, in accordance with this Agreement. [Optional, include in situations in which untimely delivery of a product or service would interfere with City's ability to serve its constituents or cause project delay. Must have Sections 18 and 19 above to include.] 21. Delays and Extensions of Time. Consultant's sole remedy for delays outside its control shall be an extension of time. No matter what the cause of the delay, Consultant must document any delay and request an extension of time in writing at the time of the delay to the satisfaction of City. Any extensions granted shall be limited to the length of the delay outside Consultant’s control. If Consultant believes that delays caused by the City will cause it to incur additional costs, it must specify, in writing, why the delay has caused additional costs to be incurred and the exact amount of such cost within 10 days of the time the delay occurs. No additional costs can be paid that exceed the not to exceed amount absent a written amendment to this Agreement. In no event shall the Consultant be entitled to any claim for lost profits due to any delay, whether caused by the City or due to some other cause. 22. Assignment. Consultant shall not assign or transfer any interest in this Agreement nor the performance of any of Consultant's obligations hereunder, without the prior written consent of City, and any attempt by Consultant to so assign this Agreement or any rights, duties, or obligations arising hereunder shall be void and of no effect. 9 Professional Services - Design 1614063.1 23. Compliance with Laws. Consultant shall comply with all applicable laws, ordinances, codes and regulations of the federal, state, and local governments. 24. Non-Waiver of Terms, Rights and Remedies. Waiver by either party of any one or more of the conditions of performance under this Agreement shall not be a waiver of any other condition of performance under this Agreement. In no event shall the making by City of any payment to Consultant constitute or be construed as a waiver by City of any breach of covenant, or any default which may then exist on the part of Consultant, and the making of any such payment by City shall in no way impair or prejudice any right or remedy available to City with regard to such breach or default. 25. Attorney's Fees. In the event that either party to this Agreement shall commence any legal or equitable action or proceeding to enforce or interpret the provisions of this Agreement, the prevailing party in such action or proceeding shall be entitled to recover its costs of suit, including reasonable attorney's fees and costs, including costs of expert witnesses and consultants. 26. Mediation. Any dispute or controversy arising under this Agreement, or in connection with any of the terms and conditions hereof, which cannot be resolved by the parties, may be referred by the parties hereto for mediation. A third party, neutral mediation service shall be selected, as agreed upon by the parties and the costs and expenses thereof shall be borne equally by the parties hereto. The parties agree to utilize their good faith efforts to resolve any such dispute or controversy so submitted to mediation. It is specifically understood and agreed by the parties hereto that mutual good faith efforts to resolve the same any dispute or controversy as provided herein, shall be a condition precedent to the institution of any action or proceeding, whether at law or in equity with respect to any such dispute or controversy. 26. Notices. Any notices, bills, invoices, or reports required by this Agreement shall be deemed received on (a) the day of delivery if delivered by hand during regular business hours or by facsimile before or during regular business hours; or (b) on the third business day following deposit in the United States mail, postage prepaid, to the addresses heretofore set forth in the Agreement, or to such other addresses as the parties may, from time to time, designate in writing pursuant to the provisions of this section. “CONSULTANT” “CITY” City of Diamond Bar 21810 Copley Drive Diamond Bar, CA 91765-4178 Attn.: Attn.: _______________ Phone: Phone: E-Mail: E-mail: 10 Professional Services - Design 1614063.1 28. Governing Law. This Agreement shall be interpreted, construed and enforced in accordance with the laws of the State of California. 29. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be the original, and all of which together shall constitute one and the same instrument. 30. Entire Agreement. This Agreement, and any other documents incorporated herein by reference, represent the entire and integrated agreement between Consultant and City. This Agreement supersedes all prior oral or written negotiations, representations or agreements. This Agreement may not be amended, nor any provision or breach hereof waived, except in a writing signed by the parties which expressly refers to this Agreement. Amendments on behalf of the City will only be valid if signed by a person duly authorized to do so under the City's Purchasing Ordinance. IN WITNESS of this Agreement, the parties have executed this Agreement as of the date first written above. "Consultant" "City" [Insert Full Name of Consultant] CITY OF DIAMOND BAR By: By: Printed Name: Dan Fox, City Manager Title: By: ATTEST: Printed Name: Title: Kristina Santana, City Clerk Approved as to form: By: Omar Sandoval, City Attorney *NOTE: If Consultant is a corporation, the City requires the following signature(s): -- (1) the Chairman of the Board, the President or a Vice-President, AND (2) the Secretary, the Chief Financial Officer, the Treasurer, an Assistant Secretary or an Assistant Treasurer. If only one corporate officer exists or one corporate officer holds more than one corporate office, please so indicate. OR 11 Professional Services - Design 1614063.1 -- The corporate officer named in a corporate resolution as authorized to enter into this Agreement. A copy of the corporate resolution, certified by the Secretary close in time to the execution of the Agreement, must be provided to the City. ATTACHMENT 3 LLAD NO. 39-2022: FY2024/25 PACKAGE Fiscal Year 2024-25 ENGINEER’S REPORT City of Diamond Bar Landscaping Assessment District No. 39-2022 July 2024 Final Report Pursuant to the Landscape and Lighting Act of 1972 and Article XIIID of the California Constitution City of Diamond Bar Landscaping Assessment District No. 39-2022 Engineer’s Report, Fiscal Year 2024-25 Page i (This Page Intentionally Left Blank) City of Diamond Bar Landscaping Assessment District No. 39-2022 Engineer’s Report, Fiscal Year 2024-25 Page ii C ity of Diamond Bar City Council Stan Liu, Mayor Chia Yu Teng, Mayor Pro Tem Andrew Chou, Councilmember Ruth M. Low, Councilmember Steve Tye, Councilmember City Staff Dan Fox, City Manager David Liu, Public Works Director / City Engineer Hall Ghafari, Public Works Manager City Attorney Omar Sandoval Engineer of Work Edric Kwan, P.E., SCI Consulting Group City of Diamond Bar Landscaping Assessment District No. 39-2022 Engineer’s Report, Fiscal Year 2024-25 Page iii (This Page Intentionally Left Blank) City of Diamond Bar Landscaping Assessment District No. 39-2022 Engineer’s Report, Fiscal Year 2024-25 Page iv Table of Contents Introduction .................................................................................................... 1 Overview ...................................................................................................................... 1 Engineer’s Report and Continuation of Assessments .................................................. 2 Legislative Analysis ....................................................................................................... 2 Plans & Specifications ..................................................................................... 5 Fiscal Year 2024-25 Estimate of Cost and Budget ............................................. 7 Budget for Fiscal Year 2024-25 ..................................................................................... 7 Method of Assessment Apportionment ........................................................... 9 Method of Apportionment ........................................................................................... 9 Discussion of Benefit .................................................................................................... 9 Special Benefit ............................................................................................................ 11 General Versus Special Benefit .................................................................................. 13 Benefit Finding ........................................................................................................... 14 Zones of Benefit ......................................................................................................... 17 Method of Apportionment ......................................................................................... 20 Residential Properties ................................................................................................ 20 Vacant/Undeveloped Properties ................................................................................ 20 Other Property Types ................................................................................................. 21 Annual Cost Indexing .................................................................................................. 22 Duration of Assessment ............................................................................................. 22 Appeals of Assessments Levied to Property .............................................................. 22 Assessment Funds Must Be Expended Within the District Area ................................ 23 Assessment ................................................................................................... 24 Assessment Diagram ..................................................................................... 26 Assessment Roll ............................................................................................ 28 City of Diamond Bar Landscaping Assessment District No. 39-2022 Engineer’s Report, Fiscal Year 2024-25 Page v List of Tables Table 1: FY 2024-25 Estimate of Costs ................................................................................ 7 Table 2: Assessment Rate Determination ........................................................................... 8 Table 3: Relative Benefit Levels ........................................................................................ 13 Table 4: Zones of Benefit – Relative Levels ....................................................................... 18 Table 5: FY 2024-25 Summary Cost Estimate ................................................................... 24 City of Diamond Bar Landscaping Assessment District No. 39 Engineer’s Report, Fiscal Year 2024-25 Page 1 Introduction Overview The City of Diamond Bar (the “City”) services and maintains mini-parks, slopes and open space areas and other improvements (“Improvements”) in the Diamond Bar Hills area of the City. In order to fund the maintenance and operation (“Services”) of these projects and improvements, Landscaping Assessment District No. 39 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 $236.00 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 2022, 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 or the California Constitution). Their intent was to replace the existing District No. 39 with a new District No. 39-2022 that would adhere to the existing boundary and include the same improvements and services. These proposed assessments were supported by 52.03% of assessment ballots received from property owners (with each ballot weighted by the amount of assessments it represented). Therefore, on March 15, 2022 by its Resolution No. 2022-13, the City Council levied the new assessments for District No. 39- 2022. This Engineer’s Report ("Report") was prepared to establish the budget for the Improvements (as described below) that will be funded by the proposed 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 the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code (the "Act") and Article XIIID of the California Constitution (the “Article”). City of Diamond Bar Landscaping Assessment District No. 39-2022 Engineer’s Report, Fiscal Year 2024-25 Page 2 Engineer’s Report and Continuation of Assessments The assessments were approved by a property-owner ballot proceeding in 2022, and were intended to replace the original District No. 39 which was established in 1985. In each subsequent year for which the assessments will be continued, the Diamond Bar City Council (the “Council”) must direct the preparation of an Engineer’s Report, budgets, and proposed assessments for the upcoming fiscal year. After the report is completed, the City Council may preliminarily approve the Engineer’s Report and the continued assessments and establish the date for a public hearing on the continuation of the assessments. Accordingly, this Engineer’s Report (the “Report”) was prepared pursuant to the direction of the City Council. As required by the Act, this Report includes plans and specifications, a diagram or map of the District, the benefits received by property from the Improvements within the District, and the method of assessment apportionment to lots and parcels within the District. If the Council approves this Engineer’s Report and the continuation of the Assessments by resolution, a notice of public hearing must be published in a local newspaper at least 10 days prior to the date of the public hearing. The resolution preliminarily approving the Engineer’s Report and establishing the date for a public hearing is typically used for this notice. Following the minimum 10-day time period after publishing the notice, a public hearing is held for the purpose of allowing public testimony about the proposed continuation of the Assessments. This hearing is currently scheduled for July 16, 2024. At this hearing, the Council will consider approval of a resolution confirming the continuation of the Assessments for fiscal year 2024-25. If so confirmed and approved, the Assessments would be submitted to the Los Angeles County Auditor/Controller for inclusion on the property tax rolls for fiscal year 2024-25. Legislative Analysis Proposition 218 The Right to Vote on Taxes Act was approved by the voters of California on November 6, 1996 and is now Article XIIIC and XIIID of the California Constitution. Proposition 218 provides for benefit assessments to be levied to fund the cost of providing services and improvements, as well as maintenance and operation expenses to a public improvement which benefits the assessed property. City of Diamond Bar Landscaping Assessment District No. 39-2022 Engineer’s Report, Fiscal Year 2024-25 Page 3 Silicon Valley Taxpayers Association, Inc. v Santa Clara County Open Space Authority (2008) 44 Cal. 4th 431 In July of 2008, the California Supreme Court issued its ruling on the Silicon Valley Taxpayers Association, Inc. v. Santa Clara County Open Space Authority (“SVTA”). This ruling is significant in that the Court clarified how Proposition 218 made changes to the determination of special benefit. The Court also found that:  Benefit assessments are for special, not general, benefit  The services and/or improvements funded by assessments must be clearly defined  Special benefits are directly received by and provide a direct advantage to property in the Improvement District  The assessment paid by property should be proportional to the special benefits it receives from the Improvements Dahms v. Downtown Pomona Property (2009) 174 Cal. App. 4th 708 In Dahms v. Downtown Pomona Property (“Dahms”) the Court upheld an assessment that was 100% special benefit (i.e. 0% general benefit) on the rationale that the services and improvements funded by the assessments were directly provided to property in the assessment district. The Court also upheld discounts and exemptions from the assessment for certain properties. Bonander v. Town of Tiburon (2009) 180 Cal. App. 4th 103 Bonander v. Town of Tiburon (“Bonander”), the 1st District Court of Appeal overturned a benefit assessment approved by property owners to pay for placing overhead utility lines underground in an area of the Town of Tiburon. The Court invalidated the assessments primarily on the grounds that the assessments had been apportioned to assessed property based on the costs within sub-areas of the assessment district instead of the overall cost of the improvements and the overall proportional special benefits. Beutz v. County of Riverside (2010) 184 Cal. App. 4th 1516 Steven Beutz v. County of Riverside (“Beutz”) the Court overturned an assessment for park maintenance in Wildomar, California, primarily because the general benefits associated with improvements and services were not explicitly calculated, quantified and separated from the special benefits. Golden Hill Neighborhood Association v. City of San Diego (2011) 199 Cal. App. 4th 416 On September 22, 2011, the San Diego Court of Appeal issued a decision on the Golden Hill Neighborhood Association v. City of San Diego appeal. This decision overturned an City of Diamond Bar Landscaping Assessment District No. 39-2022 Engineer’s Report, Fiscal Year 2024-25 Page 4 assessment for street and landscaping maintenance in the Greater Golden Hill neighborhood of San Diego, California. The court described two primary reasons for its decision. First, like in Beutz, the court found the general benefits associated with services were not explicitly calculated, quantified and separated from the special benefits. Second, the court found that the City had failed to record the basis for the assessment on its own parcels. Compliance with Current Law This Engineer’s Report is consistent with the SVTA decision and with the requirements of Article XIIIC and XIIID of the California Constitution because the Improvements to be funded are clearly defined; the benefiting property in the District enjoys close and unique proximity, access and views to the Improvements; the Improvements serve as an extension of usable land area for benefiting properties in the District and such special benefits provide a direct advantage to property in the District that is not enjoyed by the public at large or other property. This Engineer’s Report is consistent with Beutz, Dahms and Greater Golden Hill because the Improvements will directly benefit property in the District and the general benefits have been explicitly calculated and quantified and excluded from the Assessments. The Engineer’s Report is consistent with Bonander because the Assessments have been apportioned based on the overall cost of the Improvements and Services proportional special benefit to each property, rather than the proportional cost to the District to provide the Improvements to specific properties. City of Diamond Bar Landscaping Assessment District No. 39-2022 Engineer’s Report, Fiscal Year 2024-25 Page 5 Plans & Specifications The City maintains landscaping and other improvements in locations within the District’s boundaries. The work and improvements to be undertaken by Landscaping Assessment District No. 39-2022, (“District”), and the cost thereof paid from the levy of the annual Assessment provide special benefit to Assessor Parcels within the District as defined in the Method of Assessment herein. In addition to the definitions provided by the Landscaping and Lighting Act of 1972 (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 this Assessment District. 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, entry monuments, basketball courts, tennis courts, other recreational facilities, graffiti removal and repainting, and labor, materials, supplies, utilities and equipment, as applicable, at each of the locations owned, operated or maintained by the District. As applied herein, “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 and drainage, 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 any 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, and 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. City of Diamond Bar Landscaping Assessment District No. 39-2022 Engineer’s Report, Fiscal Year 2024-25 Page 6 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 (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. 39-2022 Engineer’s Report, Fiscal Year 2024-25 Page 7 Fiscal Year 2024-25 Estimate of Cost and Budget Budget for Fiscal Year 2024-25 The 1972 Act provides that the total costs for providing the maintenance and servicing of the District Improvements and facilities can be recovered in the assessment spread including incidental expenses. The latter can include engineering fees, legal fees, printing, mailing, postage, publishing and all other costs identified with the District proceedings. An estimate of District costs for fiscal year 2024-25 for the maintenance and servicing of the Improvements is provided below. Table 1: FY 2024-25 Estimate of Costs 1. The Act requires that proceeds from the assessments must be deposited into a special fund that has been set up for the revenues and expenditures of the District. Moreover, funds raised by the assessment shall be used only for the purposes stated within this Report. Any balance remaining at the end of the Fiscal Year, June 30, must be carried over to the next Fiscal Year. The District may also establish a reserve fund for contingencies and special projects as well as a capital improvement fund for accumulating funds for larger Expenditure Item Amount Salaries & Benefits 36,334$ Operating Expenses Advertising 3,500 Utilities 126,000 Maintenance of Grounds/Buildings 39,200 Professional Services 7,000 Contract Services Trail & Landscape Maintenance 170,000 Tree Maintenance 32,000 Weed/Pest Abatement 58,000 Additional Enhancement and Improvement - Estimated Expenditures 472,034$ Contingencies/Reserves 671,527 Total Budget 1,143,561$ Revenue Item Amount Direct Benefit Assessments 665,215$ Carryover from Fund Balance 447,097 General Fund Contribution 6.62%31,249 Estimated Revenues 1 1,143,561$ City of Diamond Bar Landscaping Assessment District No. 39-2022 Engineer’s Report, Fiscal Year 2024-25 Page 8 capital improvement projects or capital renovation needs. Any remaining balance would either be placed in the reserve fund or would be used to reduce future years' assessments. Table 2 below shows how the assessment rates are determined including the estimated number of single-family equivalents (“SFE”) and how the costs of improvements are allocated to parcels in the various benefit zones as defined later in this Report. Table 2: Assessment Rate Determination 1. The rate shown here is for a single-family home or its equivalent. For the definition of the term SFE and rates for other types of property, see the section titled, “Method of Assessment Apportionment” and the sections following it in this report. Single-Family Equivalents Parcel SFE factor SFEs Zone A 176 100.0%176.00 Zone B 971 97.5%946.73 Zone C 99 92.5%91.58 Total 1246 1,214.30 Budget Allocation to Parcels Amount Total Assessment Revenue 665,215$ Total SFEs 1,214.30 Assessment per SFE 1 547.82$ Zone A Assessment Rate 547.82$ Zone B Assessment Rate 534.12$ Zone C Assessment Rate 506.73$ City of Diamond Bar Landscaping Assessment District No. 39-2022 Engineer’s Report, Fiscal Year 2024-25 Page 9 Method of Assessment Apportionment Method of Apportionment This section of the Engineer's Report explains the benefits to be derived from the Improvements and the methodology used to apportion the total assessment to properties within the District. The District consists of certain assessor parcels within the boundaries as defined by the Assessment Diagram referenced in this report and the parcels identified by the Assessor Parcel Numbers listed with the levy roll. The parcel list includes all privately and publicly owned parcels as shown. The method used for apportioning the Assessment is based upon the relative 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 lots and 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. Discussion of Benefit In summary, the Assessments can only be levied based on the special benefit to property. This benefit is received by property over and above any general benefits. With reference to the requirements for assessments, Section 22573 of the Landscaping and Lighting Act of 1972 states: "The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or 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." Proposition 218, as codified in Article XIIID of the California Constitution, has confirmed that assessments must be based on the special benefit to property and that the value of the special benefits must exceed the cost of the assessment: "No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel." City of Diamond Bar Landscaping Assessment District No. 39-2022 Engineer’s Report, Fiscal Year 2024-25 Page 10 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 and access to Improved Landscaped Areas and Other Public Improvements within the District. B. 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 use that, in absence of the Assessments, would not have been created. In this case, the recent SVTA v. SCCOSA decision provides enhanced clarity to the definitions of special benefits to properties from similar improvements in three distinct areas:  Proximity  Expanded or improved access  Views The SVTA v. SCCOSA 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 v. SCCOSA decision also provides specific guidance that park improvements are a direct advantage and special benefit to property that is proximate to a park 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. City of Diamond Bar Landscaping Assessment District No. 39-2022 Engineer’s Report, Fiscal Year 2024-25 Page 11 Moreover, the Dahms decision further clarified that certain services and improvements funded by assessments, that are over and above what otherwise would be provided and that other property in general and the public do not share or receive are 100% special benefit. The assessment-funded services upheld by Dahms included streetscape maintenance and security services. Special Benefit SCI assessment engineers have identified the following special benefits: Proximity and Access to Improved L andscaped A reas 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 V iews within the Assessment 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. City of Diamond Bar Landscaping Assessment District No. 39-2022 Engineer’s Report, Fiscal Year 2024-25 Page 12 Extension of a P roperty’s O utdoor A reas and G reen S paces for P roperties within C lose P roximity 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. Safety and Security within the Assessment 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. City of Diamond Bar Landscaping Assessment District No. 39-2022 Engineer’s Report, Fiscal Year 2024-25 Page 13 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 in the first place. 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. Table 3: Relative Benefit Levels Benefit Category Proximity & Access 10% Views 10% Outdoor Area Extension 10% Safety & Security 10% Creation of Lots 60% TOTAL Benefit 100% Relative Weight 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 Benefit =General Benefit +Special Benefit City of Diamond Bar Landscaping Assessment District No. 39-2022 Engineer’s Report, Fiscal Year 2024-25 Page 14 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 vs. SCCOSA 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: General Benefit = Benefit to Real Property Outside the Assessment District + Benefit to Real Property Inside the Assessment District that is Indirect and Derivative +Benefit to the Public at Large 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 v. SCCOSA 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 and other benefits from the Improvements, and the public at large does 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. Benefit Finding Quantification of General Benefit 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. City of Diamond Bar Landscaping Assessment District No. 39-2022 Engineer’s Report, Fiscal Year 2024-25 Page 15 Benefit to Property Outside the Assessment Districts Properties within the District receive almost all 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 performed by SCI Consulting Group. 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 eight parcels outside the District that lie within a half mile travel distance of one of mini parks within the District. In addition, there are 79 parcels outside the District that are directly adjacent to areas where brush clearing activity is performed 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. 87 Parcels Outside District 1,246 Parcels In the District 40%Benefit Factor 87 87 +1,246 x 40% Assumptions: Calculation: General Benefit to Property Ouside the District =2.61% Benefit to Property Inside the Assessment Districts 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. City of Diamond Bar Landscaping Assessment District No. 39-2022 Engineer’s Report, Fiscal Year 2024-25 Page 16 Nevertheless, the SVTA vs. SCCOSA 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 regional parks, 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 1.51% 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. There are two ways in which the public at large can enjoy the improvements, with each counting for half the general benefit: use of parks, and pass-by trips where landscaped areas can be viewed. In the case of the mini parks that serve primarily the neighborhood, City staff estimate that approximately 10% of the users do not live, work or own property in the District. The general landscape improvements are typically along slopes and open space areas, out of view of the general public, so no general benefit is conferred for views of landscaping. Finally, the general benefits conferred to the public at large does not include the benefit of lot creation, so this benefit is further reduced by half. Therefore, we find that ((50% of 10%) x 50% =) 2.50% 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, 2.61%Outside the District 1.51%Inside the District 2.50%Public At Large 6.62%Total General Benefit Landscaping General Benefit Calculation we find that approximately 6.62% of the benefits conferred by the Improvements may be general in nature and should be funded by sources other than the assessment. City of Diamond Bar Landscaping Assessment District No. 39-2022 Engineer’s Report, Fiscal Year 2024-25 Page 17 Zones of Benefit The boundaries of the District were developed in conjunction and concurrent with the planning and design of the subdivisions and Improvements, and thus include only the properties in the City of Diamond Bar that are proximate to the Improvements and that would materially benefit from the Improvements. Certain other properties surrounding the District were not part of the designed association between the Improvements and the assessed areas and are generally less proximate to the Improvements. In other words, the boundaries of the District have been narrowly drawn to include only properties that will specially benefit from the Improvements and would receive a declining level of service if the Assessments were not approved. The SVTA decision indicates: “In a well-drawn district — limited to only parcels receiving special benefits from the improvement — every parcel within that district receives a shared special benefit. Under section 2, subdivision (i), these benefits can be construed as being general benefits since they are not ‘particular and distinct’ and are not ‘over and above’ the benefits received by other properties ‘located in the district.’ “We do not believe that the voters intended to invalidate an assessment district that is narrowly drawn to include only properties directly benefiting from an improvement. Indeed, the ballot materials reflect otherwise. Thus, if an assessment district is narrowly drawn, the fact that a benefit is conferred throughout the district does not make it general rather than special. In that circumstance, the characterization of a benefit may depend on whether the parcel receives a direct advantage from the improvement (e.g., proximity to 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).” In the District, the benefit that each parcel receives from the Improvements is direct, and the boundaries are narrowly drawn to include only parcels that benefit from the Assessment. However, proximity to the improvements varies somewhat within the District. In order to most conservatively assure that Assessments are proportional to the relative benefits in the District, three zones have been created: A. In the area south of Grand Avenue the concentration of landscaped areas (brush and slopes) as well as mini parks is the greatest. B. In the area north of Grand Avenue but south of Pantera Park there is less concentration of landscaped slopes and brush-cleared areas, but still a high concentration of mini parks. City of Diamond Bar Landscaping Assessment District No. 39-2022 Engineer’s Report, Fiscal Year 2024-25 Page 18 C. In the area around and north of Pantera Park there is less concentration of landscaped slopes and brush-cleared areas and no mini parks within a half mile. Based on the varying characteristics of these three distinct zones, each of the five benefit categories have been assigned a benefit factor to estimate the overall relative benefit. Using Zone A as the benchmark (100%), the other two zones derive less benefit due to the proximity of relatively fewer improvements. This estimation is summarized below. Table 4: Zones of Benefit – Relative Levels Benefit Category Weight Factor Benefit Factor Benefit Factor Benefit Proximity & Access 10%100%10.0%75%7.5%75%7.5% Views 10%100%10.0%100%10.0%75%7.5% Outdoor Area Ext.10%100%10.0%100%10.0%75%7.5% Safety & Security 10%100%10.0%100%10.0%100%10.0% Creation of Lots 60%100%60.0%100%60.0%100%60.0% Relative Benefit 100.0%97.5%92.5% Zone A Zone B Zone C A map of these zones is shown on the following page. City of Diamond Bar Landscaping Assessment District No. 39-2022 Engineer’s Report, Fiscal Year 2024-25 Page 19 City of Diamond Bar Landscaping Assessment District No. 39-2022 Engineer’s Report, Fiscal Year 2024-25 Page 20 Method of Apportionment As previously discussed, the proposed Assessments will provide comprehensive Improvements that will clearly confer special benefits to properties in the proposed District. 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 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 Engineer’s 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 In the District, there is only one type of residential property present: the single-family home. Other types of residential property, such as multifamily, apartments and condominiums, are not present. Furthermore, 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 that dominate land use is not expected in the future. As a result, there is no need for a detailed analysis of population densities to determine relative benefit for other types of residential properties. Each single-family residential property is assigned one SFE. 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. City of Diamond Bar Landscaping Assessment District No. 39-2022 Engineer’s Report, Fiscal Year 2024-25 Page 21 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 of Diamond Bar 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: School, municipal park, water utility, and open space. These are discussed below. School Property: Pantera Elementary School lies within the District and may derive some benefit from the Improvements. However, all benefits that may be derived from the Improvements are included in the General Benefits calculation noted earlier. Therefore, the School accrues no further Special Benefit and is not assessed a fee. Municipal Park: Pantera Park lies partly within the District. However, all benefits that may be derived from the improvements are included in the General Benefits calculation noted earlier. Therefore, the park accrues no further special benefit and is not assessed a fee. 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 a fee. Open Space: The open space parcels that lie within the District are part of the improvements (views, safety & security, etc.) Therefore, these parcels are not assessed a fee. City of Diamond Bar Landscaping Assessment District No. 39-2022 Engineer’s Report, Fiscal Year 2024-25 Page 22 Annual Cost Indexing The assessment shall be subject to an adjustment tied to the Consumer Price Index-U for the Los Angeles-Riverside-Orange County area as of December of each succeeding year (the “CPI”). The maximum authorized assessment rate is equal to the maximum assessment rate in the first fiscal year the Assessment was levied adjusted annually by the change in CPI. Duration of Assessment It is proposed that the Assessments, if approved by property owners, will be continued every year after their formation, so long as the public Improvements need to be maintained and improved, and the City requires funding from the Assessments for these 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. Appeals of Assessments Levied to Property 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. 39-2022 Engineer’s Report, Fiscal Year 2024-25 Page 23 Assessment Funds Must Be Expended Within the District Area The net available Assessment 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. City of Diamond Bar Landscaping Assessment District No. 39-2022 Engineer’s Report, Fiscal Year 2024-25 Page 24 Assessment WHEREAS, the City of Diamond Bar directed the undersigned engineer of Work to prepare and file a report presenting an estimate of costs, a Diagram for the District and an assessment of the estimated costs of the Improvements upon all assessable parcels within the District; NOW, THEREFORE, the undersigned, by virtue of the power vested in me under the Act, Article XIIID of the California Constitution, and the order of the City of Diamond Bar City Council, hereby makes the following Assessment to cover the portion of the estimated cost of the Improvements, and the costs and expenses incidental thereto to be paid by the District. The amount to be paid for said Improvements and the expense incidental thereto, to be paid by the District for the Fiscal Year 2024-25 is generally as follows: Table 5: FY 2024-25 Summary Cost Estimate As required by the Act, an Assessment Diagram of the District is hereto attached and incorporated herein by reference. The distinctive number of each parcel or lot of land in the District is its Assessor Parcel Number appearing on the Assessment Roll. I do hereby assess and apportion the net amount of the cost and expenses of the Improvements, including the costs and expenses incident thereto, upon the parcels and lots of land within the District, in accordance with the special benefits to be received by each parcel or lot, from the Improvements, and more particularly set forth in the Estimate of Cost and Method of Assessment in the Report. The Assessment is made upon the parcels or lots of land within the District in proportion to the special benefits to be received by the parcels or lots of land, from the Improvements. Salaries & Benefits 36,334$ Operating Expenses & Services 435,700 671,527 Total Budget 1,143,561$ Less General Fund Contribution (31,249) Less Carryover (447,097) Net Amount to Assessments 665,215$ Enhancements / Improvements / Reserves City of Diamond Bar Landscaping Assessment District No. 39-2022 Engineer’s Report, Fiscal Year 2024-25 Page 25 Each parcel or lot of land is described in the Assessment Roll by reference to its parcel number as shown on the Assessor's Maps of the County of Los Angeles for the Fiscal Year 2024-25. For a more particular description of the property, reference is hereby made to the deeds and maps on file and of record in the office of the County Recorder of the County. I hereby will place opposite the Assessor Parcel Number for each parcel or lot within the Assessment Roll, the amount of the assessment for the Fiscal Year 2024-25 for each parcel or lot of land within the District. Dated: July 16, 2024 Engineer of Work By Edric W. H. Kwan, P.E. License No. C062829 City of Diamond Bar Landscaping Assessment District No. 39-2022 Engineer’s Report, Fiscal Year 2024-25 Page 26 Assessment Diagram The District boundary and the parcels to be assessed in Landscaping Assessment District No. 39-2022 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 as shown on the maps of the Assessor of the County of Los Angeles, for Fiscal Year 2024-25, and are incorporated herein by reference, and made a part of this Diagram and this Report. City of Diamond Bar Landscaping Assessment District No. 39-2022 Engineer’s Report, Fiscal Year 2024-25 Page 27 City of Diamond Bar Landscaping Assessment District No. 39-2022 Engineer’s Report, Fiscal Year 2024-25 Page 28 Assessment Roll An Assessment Roll (a listing of all parcels assessed within the District and the amount of the Assessment) will be filed with the City Clerk and is, by reference, made part of this Report and is available for public inspection during normal office hours at the City Hall at 21810 Copley Drive, 2nd floor, Diamond Bar, California 91765. Each lot or parcel listed on the Assessment Roll is shown and illustrated on the latest County Assessor records and these records are, by reference, made part of this Report. These records shall govern for all details concerning the description of the lots or parcels. RESOLUTION NO. 2024-10 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR, CALIFORNIA, ORDERING THE CITY ENGINEER TO PREPARE AND TO FILE A REPORT RELATED TO THE MAINTENANCE OF IMPROVEMENTS IN THE CITY OF DIAMOND BAR ASSESSMENT DISTRICT NO. 39-2022 AND ANY ASSESSMENT THEREON FOR FISCAL YEAR 2024-25. WHEREAS, the City of Diamond Bar Assessment District No. 39-2022 (“District”) was created pursuant to Part 2 of Division 15 of the California Streets and Highways Code (§ 22500, et seq.); and WHEREAS, California Streets and Highways Code § 22622 provides that the City Council shall adopt a resolution generally describing any proposed new improvements or substantial changes in existing improvements in the District and ordering the City Engineer to prepare and file a report related to annual maintenance and assessment in the District; and WHEREAS, no new improvements or substantial changes in existing improvements are proposed for the District; and WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Diamond Bar as follows: Section 1. The Recitals, as set forth above, are in all respects true and correct and are incorporated herein by reference. Section 2. The City Engineer is hereby ordered and directed to prepare or have prepared an annual report in accordance with California Streets and Highways Code § 22565, et seq., with respect to City of Diamond Bar Landscape Assessment District 39- 2022 for Fiscal Year 2024-25. Section 3. The City Clerk shall attest and certify to the passage and adoption of this Resolution and enter it into the book of original resolutions, and it shall become effective immediately upon its approval. PASSED, APPROVED AND ADOPTED this 2nd day of April 2024. CITY OF DIAMOND BAR __________ Stan Liu, Mayor Resolution No. 2024-10 2 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 a regular meeting of the City Council of the City of Diamond Bar held on the 2nd day of April 2024, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAINED: COUNCIL MEMBERS: Kristina Santana, City Clerk RESOLUTION NO. 2024-24 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR TO DECLARE THE CITY’S INTENTION TO LEVY AND COLLECT ASSESSMENTS FOR LANDSCAPE DISTRICT NO. 39-2022 AND DIRECT CITY STAFF TO ADVERTISE THE PUBLIC HEARING BEFORE THE COUNCIL AT THE JULY 16, 2024 REGULAR MEETING. WHEREAS, the City of Diamond Bar Assessment District No. 39-2022 (“District”) was created pursuant to Part 2 of Division 15 of the California Streets and Highways Code (§ 22500, et seq.); and WHEREAS, SCI Consulting Group, the Engineer of Work, has prepared, filed with the City Clerk and presented to this Council a report relating to said assessment district pursuant to the provisions of the California Streets and Highways Code § 22623; and WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Diamond as follows: Section 1. The Recitals, as set forth in Part A of this Resolution, are in all respects true and correct. Section 2. The above-described report submitted by the Engineer of Work relating to the City of Diamond Bar Assessment District No. 39-2022 is hereby approved as filed. Section 3. The Council hereby declares its intention to levy and collect assessments during fiscal year 2024-25 pursuant to Part 2 of Division 15 of the Streets and Highways Code of the State of California, known as the “Landscaping and Lighting Act of 1972, “within that area designated “City of Diamond Bar Assessment District No. 39-2022,” as shown on Exhibit “A” attached hereto and incorporated herein by reference. Section 4. A general description of the improvements proposed for the aforementioned district is as follows: Installation, maintenance and servicing of public and private areas and facilities, including but not limited to, landscaping, sprinkler systems, landscape corridors, ground cover, shrubs and trees, street frontages, drainage systems, lighting, fencing, graffiti removal and repainting, and labor, materials, supplies, utilities and equipment, as applicable, for property owned and/or maintained by the City. Said installation, maintenance and servicing of the landscaping and installation, maintenance and servicing of related work shall be within the area of Assessment District No. 39-2022 as shown on Resolution No. 2024-24 2 Exhibit “A,” as attached hereto and incorporated by reference. The location and type of improvement are shown in Exhibit “A.” Section 5. Reference is hereby made to the Engineer’s Report relating to the said assessment district hereinabove approved. Said report is on file with the City Clerk of the City of Diamond Bar and contains a full and detailed description of the improvements, the boundaries of the assessment district and contains the proposed assessments upon assessable lots and parcels of land within City of Diamond Bar Assessment District No. 39-2022 for fiscal year 2024-25. Said estimated cost results in a proposed Single-Family Equivalent (“SFE”) assessment rate of $547.82 for Zone A, $534.12 for Zone B, and $506.73 for Zone C for fiscal year 2024-25. Said proposed assessments include an authorized annual increase equal to the change in the Los Angeles-Riverside-Orange County Consumer Price Index (“CPI”) per year without further vote or ballot proceeding as authorized by prior majority approval of property owners. The annual CPI from December 2022 to December 2023 was 3.47%. Section 6. This Council hereby fixes 6:30 p.m. on July 16, 2024 in the SCAQMD Auditorium located at 21865 Copley Drive, Diamond Bar, California, as the time and place for a hearing before this Council on this question of the levy of the proposed assessments on assessable lots with City of Diamond Bar Assessment District No. 39-2022 for fiscal year 2024-25 and hereby gives notice of said hearing. Section 7. The City Clerk shall certify to the adoption of this Resolution, and staff shall cause a true and correct copy of this Resolution to be published pursuant to California Government Code § 6061. PASSED, ADOPTED AND APPROVED this 18th day of June 2024. CITY OF DIAMOND BAR Stan Liu, Mayor 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 18th day of June 2024, by the following roll call vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAINED: COUNCIL MEMBERS: Kristina Santana, City Clerk Resolution No. 2024-24 3 Exhibit A RESOLUTION NO. 2024-30 A RESOLUTION LEVYING AN ASSESSMENT ON CITY OF DIAMOND BAR LANDSCAPING ASSESSMENT DISTRICT NO. 39-2022 FOR THE FISCAL YEAR 2024-25. WHEREAS, by its Resolution No. 2024-24, this Council approved a report of the Engineer of Work related to City of Diamond Bar Assessment District No. 39 -2022 (“District”) prepared pursuant to Article XIII of the California Constitution, and the Landscape and Lighting Act of 1972 (the “Act”), Part 2 of Division 15 of th e California Streets and Highways Code (commencing with Section 22500 thereof), which described the improvements thereon, and gave notice of and fixed the time and place of the hearing on the question of assessment thereon for fiscal year 2024 -25. A diagram of the area encompassed by said assessment district is attached hereto as Exhibit "A"; WHEREAS, the Report is on file with the City Clerk of the City of Diamond Bar; WHEREAS, said hearing was duly and properly noticed, commenced in the SCAQMD Auditorium located at 21865 Copley Drive, Diamond Bar, California, on July 16, 2024, 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 by 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. This 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 of the Engineer of Work referred to hereinabove, and other reports and information, the City Council hereby finds that (i) the land within the said District will be benefitted by the improvements specified in said report, (ii) said District includes all of the lands so benefitted, and (iii) the net amount to be assessed upon the lands within said District for the 2024-25 fiscal year, in accordance with said report, 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 hereinabove referred to which is on file with the City Clerk of the City of Diamond Bar are hereby ordered to be completed. Section 5. The assessment diagram contained in the report referred to Resolution No. 2024-30 2 hereinabove and for each assessable lot located within said District the Single -Family Equivalent (“SFE”) assessment rate of $547.82 for Zone A, $534.12 for Zone B, and $506.73 for Zone C are hereby adopted and confirmed and said assessment hereby is levied for the 2024-25 fiscal year. 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 referred to hereinabove for fiscal year 2024-25. Section 7. The City of Diamond Bar City Council hereby certifies that the assessments to be placed on the 2024 -25 property tax bills meet the requirements of Proposition 218 that added Articles XIIIC and XIIID 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 Assessment District No. 39-2022. 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, APPROVED and ADOPTED this 16th day of July 2024. CITY OF DIAMOND BAR __________________________ Stan Liu, Mayor Resolution No. 2024-30 3 ATTEST: I, Kristina Santana, City Clerk of the City of Diamond Bar, do hereby certify that the foregoing Resolution was duly and regularly passed, approved and adopted by the City Council of the City of Diamond Bar, California, at its regular meeting held on the 16th day of July 2024, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAINED: COUNCIL MEMBERS: ________________________ Kristina Santana, City Clerk Resolution No. 2024-30 4 Exhibit “A” ATTACHMENT 4 LLAD NO. 41-2021: FY2024/25 PACKAGE Fiscal Year 2024-25 ENGINEER’S REPORT City of Diamond Bar Landscaping Assessment District No. 41-2021 July 2024 Final Report Pursuant to the Landscape and Lighting Act of 1972 and Article XIIID of the California Constitution CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25 Page ii (This Page Intentionally Left Blank) CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25 Page iii C ity of Diamond Bar City Council Stan Liu, Mayor Chia Yu Teng, Mayor Pro Tem Andrew Chou, Councilmember Ruth M. Low, Councilmember Steve Tye, Councilmember City Manager Dan Fox P ublic Works Director David Liu City Attorney Omar Sandoval Engineer of Work Edric Kwan, P.E. SCI Consulting Group CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25 Page iv (This Page Intentionally Left Blank) CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25 Page v Table of Contents Introduction .................................................................................................... 1 Overview ...................................................................................................................... 1 Engineer’s Report and Continuation of Assessments .................................................. 2 Legislative Analysis ....................................................................................................... 2 Plans & Specifications ..................................................................................... 5 Fiscal Year 2024-25 Estimate of Cost and Budget ............................................. 7 Budget for Fiscal Year 2024-25 ..................................................................................... 7 Method of Assessment Apportionment ........................................................... 9 Method of Apportionment ........................................................................................... 9 Discussion of Benefit .................................................................................................... 9 Special Benefit ............................................................................................................ 11 General Versus Special Benefit .................................................................................. 13 Benefit Finding ........................................................................................................... 15 Method of Apportionment ......................................................................................... 17 Residential Properties ................................................................................................ 18 Vacant/Undeveloped Properties ................................................................................ 18 Other Property Types ................................................................................................. 19 Annual Assessment Calculation.................................................................................. 19 Duration of Assessment ............................................................................................. 20 Appeals of Assessments Levied to Property .............................................................. 20 Assessment Funds Must Be Expended Within the District Area ................................ 20 Assessment ................................................................................................... 21 Assessment Diagram ..................................................................................... 24 Assessment Roll ............................................................................................ 25 CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25 Page vi List of Tables Table 1: FY 2024-25 Estimate of Costs ................................................................................ 7 Table 2: Assessment Rate Determination ........................................................................... 8 Table 3: FY 2024-25 Summary Cost Estimate ................................................................... 21 CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25 Page 1 Introduction Overview The City of Diamond Bar (the “City”) services and maintains turf areas, slopes and open space areas and other improvements (“Improvements”) in the Diamond Bar Hills area of the City. In order to fund the maintenance and operation (“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 or 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 ("Report") was prepared to establish the budget for the Improvements (as described below) that will be funded by the proposed 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 the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code (the "Act") and Article XIIID of the California Constitution (the “Article”). CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25 Page 2 Engineer’s Report and Continuation of Assessments The assessments were approved by a property-owner ballot proceeding in 2021, and were intended to replace the original District No. 41 which was established in 1985. In each subsequent year for which the assessments will be continued, the Diamond Bar City Council (the “Council”) must direct the preparation of an Engineer’s Report, budgets, and proposed assessments for the upcoming fiscal year. After the report is completed, the City Council may preliminarily approve the Engineer’s Report and the continued assessments and establish the date for a public hearing on the continuation of the assessments. Accordingly, this Engineer’s Report (the “Report”) was prepared pursuant to the direction of the City Council. As required by the Act, this Report includes plans and specifications, a diagram or map of the District, the benefits received by property from the Improvements within the District, and the method of assessment apportionment to lots and parcels within the District. If the Council approves this Engineer’s Report and the continuation of the Assessments by resolution, a notice of public hearing must be published in a local newspaper at least 10 days prior to the date of the public hearing. The resolution preliminarily approving the Engineer’s Report and establishing the date for a public hearing is typically used for this notice. Following the minimum 10-day time period after publishing the notice, a public hearing is held for the purpose of allowing public testimony about the proposed continuation of the Assessments. This hearing is currently scheduled for July 16, 2024. At this hearing, the Council will consider approval of a resolution confirming the continuation of the Assessments for fiscal year 2024-25. If so confirmed and approved, the Assessments would be submitted to the Los Angeles County Auditor/Controller for inclusion on the property tax rolls for fiscal year 2024-25. Legislative Analysis Proposition 218 The Right to Vote on Taxes Act was approved by the voters of California on November 6, 1996 and is now Article XIIIC and XIIID of the California Constitution. Proposition 218 provides for benefit assessments to be levied to fund the cost of providing services and improvements, as well as maintenance and operation expenses to a public improvement which benefits the assessed property. CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25 Page 3 Silicon Valley Taxpayers Association, Inc. v Santa Clara County Open Space Authority (2008) 44 Cal. 4th 431 In July of 2008, the California Supreme Court issued its ruling on the Silicon Valley Taxpayers Association, Inc. v. Santa Clara County Open Space Authority (“SVTA”). This ruling is significant in that the Court clarified how Proposition 218 made changes to the determination of special benefit. The Court also found that:  Benefit assessments are for special, not general, benefit  The services and/or improvements funded by assessments must be clearly defined  Special benefits are directly received by and provide a direct advantage to property in the Improvement District  The assessment paid by property should be proportional to the special benefits it receives from the Improvements Dahms v. Downtown Pomona Property (2009) 174 Cal. App. 4th 708 In Dahms v. Downtown Pomona Property (“Dahms”) the Court upheld an assessment that was 100% special benefit (i.e. 0% general benefit) on the rationale that the services and improvements funded by the assessments were directly provided to property in the assessment district. The Court also upheld discounts and exemptions from the assessment for certain properties. Bonander v. Town of Tiburon (2009) 180 Cal. App. 4th 103 Bonander v. Town of Tiburon (“Bonander”), the 1st District Court of Appeal overturned a benefit assessment approved by property owners to pay for placing overhead utility lines underground in an area of the Town of Tiburon. The Court invalidated the assessments primarily on the grounds that the assessments had been apportioned to assessed property based on the costs within sub-areas of the assessment district instead of the overall cost of the improvements and the overall proportional special benefits. Beutz v. County of Riverside (2010) 184 Cal. App. 4th 1516 Steven Beutz v. County of Riverside (“Beutz”) the Court overturned an assessment for park maintenance in Wildomar, California, primarily because the general benefits associated with improvements and services were not explicitly calculated, quantified and separated from the special benefits. CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25 Page 4 Golden Hill Neighborhood Association v. City of San Diego (2011) 199 Cal. App. 4th 416 On September 22, 2011, the San Diego Court of Appeal issued a decision on the Golden Hill Neighborhood Association v. City of San Diego appeal. This decision overturned an assessment for street and landscaping maintenance in the Greater Golden Hill neighborhood of San Diego, California. The court described two primary reasons for its decision. First, like in Beutz, the court found the general benefits associated with services were not explicitly calculated, quantified and separated from the special benefits. Second, the court found that the City had failed to record the basis for the assessment on its own parcels. Compliance with Current Law This Engineer’s Report is consistent with the SVTA decision and with the requirements of Article XIIIC and XIIID of the California Constitution because the Improvements to be funded are clearly defined; the benefiting property in the District enjoys close and unique proximity, access and views to the Improvements; the Improvements serve as an extension of usable land area for benefiting properties in the District and such special benefits provide a direct advantage to property in the District that is not enjoyed by the public at large or other property. This Engineer’s Report is consistent with Beutz, Dahms and Greater Golden Hill because the Improvements will directly benefit property in the District and the general benefits have been explicitly calculated and quantified and excluded from the Assessments. The Engineer’s Report is consistent with Bonander because the Assessments have been apportioned based on the overall cost of the Improvements and Services proportional special benefit to each property, rather than the proportional cost to the District to provide the Improvements to specific properties. CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25 Page 5 Plans & Specifications The City maintains landscaping and other improvements in locations within the District’s boundaries. The work and improvements to be undertaken by Landscaping Assessment District No. 41-2021, (“District”), and the cost thereof paid from the levy of the annual Assessment provide special benefit to Assessor Parcels within the District as defined in the Method of Assessment herein. In addition to the definitions provided by the Landscaping and Lighting Act of 1972 (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 this Assessment District. 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, lighting, fencing, graffiti removal and repainting, and labor, materials, supplies, utilities and equipment, as applicable, at each of the locations owned, operated or maintained by the District. As applied herein, “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 and drainage, 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 any 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, and 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. CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25 Page 6 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 (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 LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25 Page 7 Fiscal Year 2024 -2 5 Estimate of Cost and Budget Budget for Fiscal Year 2024-25 The 1972 Act provides that the total costs for providing the maintenance and servicing of the District Improvements and facilities can be recovered in the assessment spread including incidental expenses. The latter can include engineering fees, legal fees, printing, mailing, postage, publishing and all other costs identified with the District proceedings. An estimate of District costs for fiscal year 2024-25 for the maintenance and servicing of the Improvements is provided below. Table 1: FY 2024-25 Estimate of Costs 1. The Act requires that proceeds from the assessments must be deposited into a special fund that has been set up for the revenues and expenditures of the District. Moreover, funds raised by the assessment shall be used only for the purposes stated within this Report. Any balance Expenditure Item Amount Salaries & Benefits 36,728$ Operating Expenses Advertising 3,000 Utilities 77,000 Maintenance of Grounds/Buildings 46,000 Professional Services 7,000 Contract Services Landscape Maintenance 68,500 Tree Maintenance 23,000 Weed/Pest Abatement 50,118 Capital Improvements 0 Estimated Expenditures 311,346$ Contingencies/Reserves 169,140 Total Budget 480,486$ Revenue Item Amount Direct Benefit Assessments 311,346$ Carryover from Prior Year 157,185 General Fund Contribution 3.84%11,955 Estimated Revenues 1 480,486$ LANDSCAPING ASSESSMENT DISTRICT NO. 41-2021 CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25 Page 8 remaining at the end of the Fiscal Year, June 30, must be carried over to the next Fiscal Year. The District may also establish a reserve fund for contingencies and special projects as well as a capital improvement fund for accumulating funds for larger capital improvement projects or capital renovation needs. Any remaining balance would either be placed in the reserve fund or would be used to reduce future years' assessments. Table 2 below shows how the assessment rates are determined including the estimated number of single-family equivalents (“SFE”) and how the costs of improvements are allocated to parcels as defined later in this Report. Table 2: Assessment Rate Determination 1. The rate shown here is for a single-family home or its equivalent. For the definition of the term SFE and rates for other types of property, see the section titled, “Method of Assessment Apportionment” and the sections following it in this report. Single-Family Equivalents Parcels SFE factor SFEs Single Family Parcels 410 100%410.00 Condominium Parcels 144 92%132.48 Total 554 542.48 Budget Allocation to Parcels Total Amount Assessed 311,346$ Total SFEs 542.48 Assessment per SFE 1 573.93$ Single-Family Assessment 573.93$ Condominium Assessment 528.02$ CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25 Page 9 Method of Assessment Apportionment Method of Apportionment This section of the Engineer's Report explains the benefits to be derived from the Improvements and the methodology used to apportion the total assessment to properties within the District. The District consists of certain assessor parcels within the boundaries as defined by the Assessment Diagram referenced in this report and the parcels identified by the Assessor Parcel Numbers listed with the levy roll. The parcel list includes all privately and publicly owned parcels as shown. The method used for apportioning the Assessment is based upon the relative 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 lots and 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. Discussion of Benefit In summary, the Assessments can only be levied based on the special benefit to property. This benefit is received by property over and above any general benefits. With reference to the requirements for assessments, Section 22573 of the Landscaping and Lighting Act of 1972 states: "The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or 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." Proposition 218, as codified in Article XIIID of the California Constitution, has confirmed that assessments must be based on the special benefit to property and that the value of the special benefits must exceed the cost of the assessment: "No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel." CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25 Page 10 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. B. 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. In this case, the recent SVTA v. SCCOSA decision provides enhanced clarity to the definitions of special benefits to properties from similar improvements in three distinct areas: ♦ Proximity ♦ Expanded or Improved Access ♦ Views The SVTA v. SCCOSA 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 v. SCCOSA decision also provides specific guidance that park improvements are a direct advantage and special benefit to property that is proximate to a park 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. CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25 Page 11 Moreover, the Dahms decision further clarified that certain services and improvements funded by assessments, that are over and above what otherwise would be provided and that other property in general and the public do not share or receive are 100% special benefit. The assessment-funded services upheld by Dahms included streetscape maintenance and security services. Special Benefit SCI assessment engineers have identified the following special benefits: Proximity and Access 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 V iews within the Assessment 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. CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25 Page 12 Extension of a P roperty’s O utdoor A reas and G reen S paces for P roperties within C lose P roximity 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. Safety and Security within the Assessment 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 L ots for R esidential 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. CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25 Page 13 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 in the first place. 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. Benefit Category Proximity & Access 10% Views 10% Outdoor Area Extension 10% Safety & Security 10% Creation of Lots 60% TOTAL Benefit 100% Relative Weight 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 Benefit = General Benefit + Special Benefit CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25 Page 14 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 vs. SCCOSA 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: General Benefit = Benefit to Real Property Outside the Assessment District + Benefit to Real Property Inside the Assessment District that is Indirect and Derivative + Benefit to the Public at Large 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 v. SCCOSA 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 LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25 Page 15 Benefit Finding Quantification of General Benefit 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 Assessment Districts 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 performed by SCI Consulting Group. 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. 23 Parcels Outside District 554 Parcels In the District 40%Benefit Factor 23 23 +554 Assumptions: Calculation: General Benefit to Property Ouside the District x 40%=1.59% CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25 Page 16 Benefit to Property Inside the Assessment Districts 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 vs. SCCOSA 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 regional parks, 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. 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 was 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 pass- by 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, we find that ((90% of 25%) x 10% =) 2.25% of the benefits from the Improvements are general benefits to the public at large. CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25 Page 17 Total General Benefits Using a sum of these three measures of general benefit, we find that 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. Outside the District Inside the District Public At Large Total General Benefit Landscaping General Benefit Calculation 1.59% 0.00% 2.25% 3.84% Method of Apportionment As previously discussed, the proposed Assessments will provide comprehensive Improvements that will clearly confer special benefits to properties in the proposed District. 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 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 Engineer’s Report, all properties are designated a 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. CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25 Page 18 Residential Properties Certain residential properties in the District that contain a single residential dwelling unit are assigned one Single Family Equivalent or 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. Benefit Category PDF SFE Factor PDF SFE Factor Proximity & Access 10%100%10.0%73%7.3% Views 10%100%10.0%73%7.3% Outdoor Area Extension 10%100%10.0%73%7.3% Safety & Security 10%100%10.0%100%10.0% Creation of Lots 60%100%60.0%100%60.0% TOTAL Benefit 100%100%92% SFR CondoWeight 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 SFR-based 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. CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25 Page 19 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 of Diamond Bar 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 two other types of property uses to be considered: Water utility and open space. These are discussed below. 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 a fee. Open Space: The open space parcels that lie within the District are part of the improvements (views, safety & security, etc.) Therefore, these parcels are not assessed a fee. 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. A nnual Assessment Calculation 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 an Engineer’s Report prepared in accordance with Article XIIID of the California Constitution. If the Engineer’s 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. CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25 Page 20 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 from the Assessments for these 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. Appeals of Assessments Levied to Property Any property owner who feels 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 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. Assessment Funds Must Be Expended Within the District Area The net available Assessment 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. CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25 Page 21 Assessment WHEREAS, the City of Diamond Bar directed the undersigned engineer of Work to prepare and file a report presenting an estimate of costs, a Diagram for the District and an assessment of the estimated costs of the Improvements upon all assessable parcels within the District; NOW, THEREFORE, the undersigned, by virtue of the power vested in me under the Act, Article XIIID of the California Constitution, and the order of the City of Diamond Bar City Council, hereby makes the following Assessment to cover the portion of the estimated cost of the Improvements, and the costs and expenses incidental thereto to be paid by the District. The amount to be paid for said Improvements and the expense incidental thereto, to be paid by the District for the Fiscal Year 2024-25 is generally as follows: Table 3: FY 2024-25 Summary Cost Estimate As required by the Act, an Assessment Diagram of the District is hereto attached and incorporated herein by reference. The distinctive number of each parcel or lot of land in the District is its Assessor Parcel Number appearing on the Assessment Roll. I do hereby assess and apportion the net amount of the cost and expenses of the Improvements, including the costs and expenses incident thereto, upon the parcels and lots of land within the District, in accordance with the special benefits to be received by each parcel or lot, from the Improvements, and more particularly set forth in the Estimate of Cost and Method of Assessment in the Report. Salaries & Benefits 36,728$ Operating Expenses & Services 274,618 Capital Expenses/Reserves 169,140 Total Budget 480,486$ Less General Fund Contribution (11,955) Less Carryover (157,185) Net Amount to Assessments 311,346$ Fund and Budget Summary Fiscal Year 2024-25 LANDSCAPING ASSESSMENT DISTRICT NO. 41-2021 CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25 Page 22 The Assessment is made upon the parcels or lots of land within the District in proportion to the special benefits to be received by the parcels or lots of land, from the Improvements. Each parcel or lot of land is described in the Assessment Roll by reference to its parcel number as shown on the Assessor's Maps of the County of Los Angeles for the Fiscal Year 2024-25. For a more particular description of the property, reference is hereby made to the deeds and maps on file and of record in the office of the County Recorder of the County. I hereby will place opposite the Assessor Parcel Number for each parcel or lot within the Assessment Roll, the amount of the assessment for the Fiscal Year 2024-25 for each parcel or lot of land within the District. Dated: July 16, 2024 Engineer of Work By Edric W. H. Kwan, P.E. License No. C062829 CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25 Page 23 CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25 Page 24 Assessment Diagram The District boundary and the parcels to be assessed in Landscaping Assessment District No. 41-2021 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 as shown on the maps of the Assessor of the County of Los Angeles, for Fiscal Year 2024-25, and are incorporated herein by reference, and made a part of this Diagram and this Report. CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25 Page 25 Assessment Roll An Assessment Roll (a listing of all parcels assessed within the District and the amount of the Assessment) will be filed with the City Clerk and is, by reference, made part of this Report and is available for public inspection during normal office hours at the City Hall at 21810 Copley Drive, 2nd floor, Diamond Bar, California 91765. Each lot or parcel listed on the Assessment Roll is shown and illustrated on the latest County Assessor records and these records are, by reference, made part of this Report. These records shall govern for all details concerning the description of the lots or parcels. RESOLUTION NO. 2024-11 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR, CALIFORNIA, ORDERING THE CITY ENGINEER TO PREPARE AND TO FILE A REPORT RELATED TO THE MAINTENANCE OF IMPROVEMENTS IN THE CITY OF DIAMOND BAR ASSESSMENT DISTRICT NO. 41-2021 AND ANY ASSESSMENT THEREON FOR FISCAL YEAR 2024-25. WHEREAS, the City of Diamond Bar Assessment District No. 41-2021 (“District”) was created pursuant to Part 2 of Division 15 of the California Streets and Highways Code (§ 22500, et seq.); and WHEREAS, California Streets and Highways Code § 22622 provides that the City Council shall adopt a resolution generally describing any proposed new improvements or substantial changes in existing improvements in the District and ordering the City Engineer to prepare and file a report related to annual maintenance and assessment in the District; and WHEREAS, no new improvements or substantial changes in exiting improvements are proposed for the District; and WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Diamond Bar as follows: Section 1. The Recitals, as set forth above, are in all respects true and correct and are incorporated herein by reference. Section 2. The City Engineer is hereby ordered and directed to prepare or have prepared an annual report in accordance with California Streets and Highways Code § 22565, et seq., with respect to City of Diamond Bar Landscape Assessment District 41- 2021 for Fiscal Year 2024-25. Section 3. The City Clerk shall attest and certify to the passage and adoption of this Resolution and enter it into the book of original resolutions, and it shall become effective immediately upon its approval. PASSED, APPROVED AND ADOPTED this 2nd day of April 2024. CITY OF DIAMOND BAR _______ Stan Liu, Mayor Resolution No. 2024-11 2 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 a regular meeting of the City Council of the City of Diamond Bar held on the 2nd day of April 2024, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAINED: COUNCIL MEMBERS: Kristina Santana, City Clerk RESOLUTION NO. 2024-25 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR TO DECLARE THE CITY’S INTENTION TO LEVY AND COLLECT ASSESSMENTS FOR LANDSCAPE DISTRICT NO. 41-2021 AND DIRECT CITY STAFF TO ADVERTISE THE PUBLIC HEARING BEFORE THE COUNCIL AT THE JULY 16, 2024 REGULAR MEETING. WHEREAS, the City of Diamond Bar Assessment District No. 41-2021 (“District”) was created pursuant to Part 2 of Division 15 of the California Streets and Highways Code (§ 22500, et seq.); and WHEREAS, SCI Consulting Group, the Engineer of Work, has prepared, filed with the City Clerk and presented to this Council a report relating to said assessment district pursuant to the provisions of the California Streets and Highways Code § 22623; and WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Diamond as follows: Section 1. The Recitals, as set forth in Part A of this Resolution, are in all respects true and correct. Section 2. The above-described report submitted by the Engineer of Work relating to the City of Diamond Bar Assessment District No. 41-2021 is hereby approved as filed. Section 3. The Council hereby declares its intention to levy and collect assessments during fiscal year 2024-25 pursuant to Part 2 of Division 15 of the Streets and Highways Code of the State of California, known as the “Landscaping and Lighting Act of 1972, “within that area designated “City of Diamond Bar Assessment District No. 41-2021,” as shown on Exhibit “A” attached hereto and incorporated herein by reference. Section 4. A general description of the improvements proposed for the aforementioned district is as follows: The maintenance and servicing of landscaping and any facilities which are appurtenant thereto or which are necessary or convenient for the maintenance and servicing thereof, including but not limited to, repair, removal or replacement, grading, clearing, removal of debris, pruning, fertilization, pest control and weed control, and the installation or construction of appurtenant facilities, including curbs, gutters, walls, sidewalks or paving, or water, irrigation, or electrical facilities. Said maintenance and servicing of the landscaping and installation, maintenance and servicing of related work shall be within the area of Landscape Assessment District No. 41- 2021 as shown on Resolution No. 2024-25 2 Exhibit "A" as attached hereto and incorporated by reference. The location and type of improvement are shown on Exhibit "A." Section 5. Reference is hereby, made to the Engineer's Report relating to the said assessment district hereinabove approved. Said report is on file with the City Clerk of the City of Diamond Bar and contains a full and detailed description of the improvements, the boundaries of the assessment district and contains the proposed assessments upon assessable lots and parcels of land within City of Diamond Bar Landscape Assessment District No. 41-2021 for fiscal year 2024-25. Said proposed assessment amounts for the single-family and multi-family parcels are $573.93 and $528.02, respectively, an increase of 3% from fiscal year 2023-24. Said proposed assessments include an authorized annual increase equal to the change in the Los Angeles-Riverside-Orange County Consumer Price Index (“CPI”) per year without further vote or ballot proceeding, not to exceed 3%, as authorized by prior majority approval of property owners. The annual CPI from December 2022 to December 2023 was 3.47%. The 3% cap is in effect. Section 6. This Council hereby fixes 6:30 p.m. on July 16, 2024 in the SCAQMD Auditorium located at 21865 Copley Drive, Diamond Bar, California, as the time and place for a hearing before this Council on this question of the levy of the proposed assessments on assessable lots with City of Diamond Bar Assessment District No. 41-2021 for fiscal year 2024-25 and hereby gives notice of said hearing. Section 7. The City Clerk shall certify to the adoption of this Resolution, and staff shall cause a true and correct copy of this Resolution to be published pursuant to California Government Code § 6061. PASSED, ADOPTED AND APPROVED this 18th day of June 2024. CITY OF DIAMOND BAR __________________________ Stan Liu, Mayor 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 18th day of June 2024, by the following roll call vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAINED: COUNCIL MEMBERS: Kristina Santana, City Clerk Resolution No. 2024-25 3 Exhibit A RESOLUTION NO. 2024-31 A RESOLUTION LEVYING AN ASSESSMENT ON CITY OF DIAMOND BAR LANDSCAPING ASSESSMENT DISTRICT NO. 41-2021 FOR THE FISCAL YEAR 2024-25. WHEREAS, by its Resolution No. 2024-25, this Council approved a report of the Engineer of Work related to City of Diamond Bar Assessment District No. 41-2021 (“District”) prepared pursuant to Article XIII of the California Constitution, and the Landscape and Lighting Act of 1972 (the “Act”), Part 2 of Division 15 of the California Streets and Highways Code (commencing with Section 22500 thereof), which describ ed the improvements thereon, and gave notice of and fixed the time and place of the hearing on the question of assessment thereon for fiscal year 2024-25. A diagram of the area encompassed by said assessment district is attached hereto as Exhibit "A"; WHEREAS, the Report is on file with the City Clerk of the City of Diamond Bar; WHEREAS, said hearing was duly and properly noticed, commenced in the SCAQMD Auditorium located at 21865 Copley Drive, Diamond Bar, California, on July 16, 2024, 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 by 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. This 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 of the Engineer of Work referred to hereinabove, 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 2024-25 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 hereinabove referred to which is on file with the City Clerk of the City of Diamond Bar are hereby ordered to be completed. Section 5. The assessment diagram contained in the Report and the Resolution No. 2024-31 2 assessment amounts of $573.93 and $528.02 for the single-family and multi-family parcels, respectively, within said District are hereby adopted and confirmed and said assessment hereby is levied for the 2024-25 fiscal year. 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 2024 -25. Section 7. The City of Diamond Bar City Council hereby certifies that the assessments to be placed on the 2024 -25 property tax bills meet the requirements of Proposition 218 that added Articles XIIIC and XIIID 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 Landscape 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, APPROVED and ADOPTED this 16th day of July 2024. CITY OF DIAMOND BAR ________________________ Stan Liu, Mayor Resolution No. 2024-31 3 ATTEST: I, Kristina Santana, City Clerk of the City of Diamond Bar, do hereby certify that the foregoing Resolution was duly and regularly passed, approved and adopted by the City Council of the City of Diamond Bar, California, at its regular meeting held on the 16th day of July 2024, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAINED: COUNCIL MEMBERS: ________________________ Kristina Santana, City Clerk Resolution No. 2024-31 4 Exhibit “A” Landscape Assessment District 41-2021