Agenda packet — Diamond Bar City Council, July 16, 2024 (part 2 of 2)

Proejct Concept Layouts
Diamond Bar Boulevard and Golden Springs Drive
Location
200 ft
250’Radius In
uence Area

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Diamond Bar Blvd
Sunset Crossing Rd
S02
Install Nearside
Supplemental Vehicle
Signal
S18PB
Convert Existing
Crosswalk to High
Visibility Crosswalk
Diamond Bar Boulevard and Sunset Crossing Road Page 2
Location
200 ft
Project Concept Layouts
2 5
0’Radius In
uence Area

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Grand Ave
Diamond Bar Blvd
S17PB
Install pedestrian
countdown signal heads
with Accessible
Pedestrian Signal (APS)
Project Concept Layouts
Diamond Bar Boulevard and Grand Avenue Page 3
Location
200 ft
250’Radius In uence Area

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Diamond Bar Blvd
Project Concept Layouts
Diamond Bar Boulevard and Pathfinder Road Page 4
Location
300 ft
S17PB
Install pedestrian
countdown signal heads
with Accessible
Pedestrian Signal (APS)
Pathfinder Rd
2 5
0’Ra
dius In
uence Area

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Diamond Bar Boulevard and Brea Canyon Road Page 5
Location
300 ft
Project Concept Layouts
S17PB
Install pedestrian
countdown signal heads
with Accessible
Pedestrian Signal (APS)
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Diamond Bar Blvd
In uence Area

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Golden Springs Dr
Brea Canyon Rd
S02
Install Nearside
Supplemental
Vehicle Signal
S18PB
Convert Existing
Crosswalk to High
Visibility Crosswalk
S17PB
Install pedestrian
countdown signal heads
with Accessible
Pedestrian Signal (APS)
Golden Springs Drive and Brea Canyon Road Page 6
Location
300 ft
Project Concept Layouts
250’Radius In uence Area

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Carpio Dr
Golden Springs Dr
S17PB
Install pedestrian
countdown signal heads
with Accessible
Pedestrian Signal (APS)
Project Concept Layouts
Golden Springs Drive and Carpio Drive Page 7
Location
200 ft
250’Radius In
uence Area

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Grand Ave
Summitbridge Dr
S02
Install Nearside
Supplemental Vehicle
Signal
S18PB
Convert Existing
Crosswalk to High
Visibility Crosswalk
Grand Avenue and Summitridge Drive Page 8
Location
200 ft
Project Concept Layouts
250’Radius
In
uence Area

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Pathfinder Rd
S02
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Supplemental Signal
S18PB
Convert Existing
Crosswalk to High
Visibility Crosswalk
Brea Canyon Rd
Brea Canyon Road and Pathfinder Road
Location
200 ft
250’R
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Project Concept Layouts
Figure 9

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Agenda #: 6.1
Meeting Date: July 16, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: LEVYING ASSESSMENTS ON LANDSCAPE ASSESSMENT
DISTRICT NO. 38 FOR FISCAL YEAR 2024/25.

STRATEGIC
GOAL: Safe, Sustainable & Healthy Community
RECOMMENDATION:

A. Receive presentation, open Public Hearing to receive testimony, close Public Hearing; and
B. Adopt Resolution No. 2024-29 to levy and collect assessments for Landscape Assessment District No. 38 for Fiscal Year 2024/25.

FINANCIAL SUMMARY:

The assessments generated by this District in the amount of $276,780 and $308,477 of the General Fund contributions are included for the operation and maintenance costs in the Fiscal Year 2024/25 Budget Special Fund No. 238.

BACKGROUND/DISCUSSION:

As part of the assessment district updates, the City must undergo a three-step process.

This is the final part of the process, where the City Council conducts a public hearing on the District’s proposed annual assessments, after which the Council will consider the related resolution confirming the levy assessments. Throughout the entire process, all proceedings for the maintenance of improvements have been pursuant to the provisions of the Landscape and Lighting Act of 1972 of Part 2 Division 15 of the Streets and Highways Code of the State of California and applicable provisions of Proposition 218, Article 10 XIIID of the California Constitution.

On April 2, 2024, the City Council adopted Resolution No. 2024-09, ordering the City Engineer to prepare and file an Engineer's Report related to maintenance of improvements in Landscaping Assessment District No. 38 (District) and any

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assessment thereon for Fiscal Year 2024/25.

On June 18, 2024, the City Council adopted Resolution No. 2024-23, declaring the City's intention to levy and collect assessments for the District and directing staff to advertise the Public Hearing to be set for the July 16, 2024, regular meeting.

The attached Engineer’s Report for the City’s Landscaping Assessment District Number 38 (Attachment 2), which has been prepared pursuant to provisions of the Landscaping and Lighting Act of 1972 of Part 2 of Division 15 of the Streets and Highways Code of the State of California, includes authority for the report, estimated costs of improvements, a diagram for the District and the assessments.

The estimated number of parcels within the District is 18,452 parcels. The amount assessed upon the lands within District Number 38 for Fiscal Year 2023/24 was $15.00 per parcel. The amount to be assessed for Fiscal Year 2024/25 is to remain at $15.00 per parcel. The assessments will be utilized to maintain the City’s medians and parkways.

The proposed assessment has been determined to be exempt from the provisions of Proposition 218 as set forth in section 5 (a): Any assessment imposed exclusively to finance the capital costs or maintenance and operation expenses for sidewalks, streets, sewers, water, flood control drainage systems or vector control.

LEGAL REVIEW:

The City Attorney has reviewed and approved the Resolution as to form.

PREPARED BY:

REVIEWED BY:

Attachments:

1. 6.1.a Resolution No. 2024-29 (LAD 38)

2. 6.1.b LLAD 38 Engineer's Final Report for FY2024-25

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RESOLUTION NO. 2024-29

A RESOLUTION LEVYING AN ASSESSMENT ON CITY OF DIAMOND
BAR LANDSCAPE ASSESSMENT DISTRICT NO. 38 FOR FISCAL YEAR 2024-25.

WHEREAS, by its Resolution No. 2024-23, this Council approved a report of the Engineer of Work related to City of Diamond Bar Landscape Assessment District No. 38 (“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 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

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Resolution No. 2024-29
2 hereinabove and the assessment of $15.00 for each assessable lot located 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 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 Landscape Assessment District No. 38.

Section 10. The City Clerk is hereby authorized and directed to file the diagram and assessment with the County Auditor, together with a certified copy of this Resolution upon its adoption.

Section 11. A certified copy of the assessment and diagram shall be filed in the office of the City Clerk and open for public inspection.

Section 12. The City Clerk shall certify to the adoption of this Resolution.

PASSED, APPROVED and ADOPTED this 16th day of July 2024.

CITY OF DIAMOND BAR
__________________________
Stan Liu, Mayor

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Resolution No. 2024-29
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

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Resolution No. 2024-29
4 Exhibit “A”

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Fiscal Year 2024-25 ENGINEER’S REPORT
City of Diamond Bar
Landscaping Assessment District No. 38
July 2024
Final Report
Pursuant to the Landscape and Lighting Act of 1972 and Article XIIID of the California Constitution

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CITY OF DIAMOND BAR PAGE ii
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 38
ENGINEER’S REPORT, FISCAL YEAR 2024-25

BY SCICONSULTINGGROUP
City 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
Public Works Director
David Liu
City Attorney
Omar Sandoval
Engineer of Work
Edric Kwan, P.E.

SCI Consulting Group

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LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 38
ENGINEER’S REPORT, FISCAL YEAR 2024-25

BY SCICONSULTINGGROUP
(This Page Intentionally Left Blank)

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LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 38
ENGINEER’S REPORT, FISCAL YEAR 2024-25

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Table of Contents
Introduction.................................................................................................... 6 Overview ......................................................................................................................6 Engineer’s Report and Continuation of Assessments..................................................6 Legislative Analysis.......................................................................................................7 Plans & Specifications ................................................................................... 10 Fiscal Year 2024-25 Estimate of Cost and Budget ........................................... 13 Budget for Fiscal Year 2024-25...................................................................................13 Method of Assessment Apportionment......................................................... 14 Method of Apportionment.........................................................................................14 Discussion of Benefit..................................................................................................14 Special Benefit............................................................................................................16 General Versus Special Benefit ..................................................................................17 Benefit Finding ...........................................................................................................18 Method of Apportionment.........................................................................................22 Annual Assessment Calculation..................................................................................23 Duration of Assessment .............................................................................................23 Appeals of Assessments Levied to Property ..............................................................23 Assessment Funds Must Be Expended Within the District Area................................24 Assessment................................................................................................... 25 Assessment Diagram ..................................................................................... 27 Assessment Roll ............................................................................................ 29

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LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 38
ENGINEER’S REPORT, FISCAL YEAR 2024-25

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List of Tables
Table 1: FY 2024-25 Estimate of Costs.............................................................................. 13 Table 2: FY 2024-25 Summary Cost Estimate ................................................................... 25

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LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 38
ENGINEER’S REPORT, FISCAL YEAR 2024-25

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Introduction
Overview
The City of Diamond Bar (the “City”) services and maintains perimeter and median landscaping, and other improvements (“Improvements”) to various parts of the City. In order to fund the maintenance and operation (“Services”) of these projects and improvements, Landscaping Assessment District No. 38 (“District”) was formed in 1984 by the County of Los Angeles prior to the incorporation of the City of Diamond Bar. Upon incorporation in 1989, the City assumed jurisdiction over the District. This Engineer’s Report ("Report") was prepared to establish the budget for the Improvements (as described below) that will be funded by the 2024-25 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”).

Engineer’s Report and Continuation of Assessments
The assessments have been continued for over 35 years. 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.

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LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 38
ENGINEER’S REPORT, FISCAL YEAR 2024-25

BY SCICONSULTINGGROUP
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.

Beginning in 2015, SCI Consulting Group became the Assessment Engineer for the District.

To maintain an accurate reference and legally defensible record of the District, pertinent language used in previous engineer’s reports has been retained herein and is cited in italics as appropriate.

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.

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:
 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
This Engineer’s Report and the process used to establish the continuation of the assessments for fiscal year 2024-25 are consistent with the SVTA decision and with the requirements of Article XIIIC and XIIID of the California Constitution based on the following factors:

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LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 38
ENGINEER’S REPORT, FISCAL YEAR 2024-25

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1. The District is drawn to include the entire City; although only parcels deriving special benefits are included in the assessment rolls. Thus, zones of benefit are not required, and the assessment revenue derived from real property in the District is expended only on the Improvements in the District.

2. The Improvements which are constructed and maintained with assessment proceeds in the District are located in close proximity to the real property subject to the assessment. The Improvements provide landscaping and other services to the residents of such assessed property. The proximity of the Improvements to the assessed parcels provides a special benefit to the parcel being assessed pursuant to the factors outlined by the Supreme Court in that decision.

3. Due to their proximity to the assessed parcels, the Improvements financed with assessment revenues in the District benefit the properties in that District in a manner different in kind from the benefit that other parcels of real property in the City derive from such Improvements, and the benefits conferred on such property in the District are more extensive than a general increase in property values.

4. The assessments paid in the District are proportional to the special benefit that each parcel within that Assessment District receives from the Improvements because:
a. The specific landscaping Improvements and maintenance and utility costs thereof in the District are specified in this Report; and b. Such Improvement and maintenance costs in the District are allocated among different types of property located within the District, and equally among those properties which have similar characteristics, such as single-family residential parcels, multi-family residential parcels, commercial parcels, industrial parcels, etc.

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.

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LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 38
ENGINEER’S REPORT, FISCAL YEAR 2024-25

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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 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.

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CITY OF DIAMOND BAR PAGE 10
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 38
ENGINEER’S REPORT, FISCAL YEAR 2024-25

BY SCICONSULTINGGROUP
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. 38, (“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 follows:

Medians
The landscaped islands to be maintained by the District are located as follows:
 Diamond Bar Blvd
 Grand Ave
 Golden Springs Dr – 57 freeway overcrossing to West City Limits  Golden Prados Dr – Golden Springs Dr to Hopi St
 Tin Dr – Great Bend Dr to Diamond Bar Blvd
 Lemon Ave – Lycoming St to Golden Springs Dr
 Sunset Crossing Rd – 57 freeway off-ramp to Prospectors Rd  Prospectors Rd – at Dry Creek Rd; at Palo Cedro Dr; and at Beaverhead Dr  Pathfinder Rd at Brea Canyon Rd (east of 57 freeway)
Parkways
The landscaped parkways to be maintained by the District are located as follows:
 Grand Ave – Summit Ridge to Diamond Bar Blvd, north side  Temple Ave – Diamond Bar Blvd to Golden Springs Dr, south side  Golden Springs Dr – Ballena Dr to End of cul-de-sac
 Golden Springs Dr – El Encino Dr to Platina Dr
 Golden Springs Dr – Rancheria Rd to end of cul-de-sac

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LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 38
ENGINEER’S REPORT, FISCAL YEAR 2024-25

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 Diamond Bar Blvd – Mountain Laurel Way to Maple Hill Rd  Pathfinder Rd – Evergreen Springs Dr to end of cul-de-sac  Brea Canyon Rd – at Gerndal St
 Golden Springs Dr – at Adel Ave
 Brea Canyon Rd – South of Pathfinder Rd to southerly City Limits, both sides  Sunset Crossing Rd – Big Falls Dr to Chapparal Dr
Turf Areas
The landscaped turf areas to be maintained by the District are located as follows:
 Diamond Bar Blvd – at Gold Rush Dr
 Grand Ave (east side) – from south of Rolling Knoll Dr to driveway at the Diamond Bar Center
Installation, maintenance and servicing of Improvements, may include, but are not limited to, turf and play areas, landscaping, ground cover, shrubs and trees, irrigation systems, lighting, fencing, entry monuments, graffiti removal and repainting, 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 and lights. “Maintenance” means the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of any improvement, including repair, removal or replacement of all or 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.

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LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 38
ENGINEER’S REPORT, FISCAL YEAR 2024-25

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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.

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ENGINEER’S REPORT, FISCAL YEAR 2024-25

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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
A. The Act requires 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 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.

Expenditure Item
Salaries & Benefits (subsidized by General Fund) $ 50,557 Operating Expenses
Advertising $ 3,000
Utilities $ 160,500
Maintenance of Grounds/Buildings $ 50,000
Professional Services $ 7,000
Contract Services
Landscape Maintenance $ 230,500
Trees Maintenance $ 83,700
Estimated Expenditures $ 585,257
Revenue Item
Direct Benefit Assessments $ 276,780
Fund Balance Reserves $ -
General Fund Contribution $ 308,477
Estimated Revenues $ 585,257
Budget Allocation to Parcels
Total Assessment BudgetA $ 276,780
Total Assessable Parcels $ 18,452
Assessment per Parcel $ 15
LANDSCAPING ASSESSMENT DISTRICT NO. 38
FY 2024-25

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LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 38
ENGINEER’S REPORT, FISCAL YEAR 2024-25

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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."

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LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 38
ENGINEER’S REPORT, FISCAL YEAR 2024-25

BY SCICONSULTINGGROUP
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. Access to Improved landscaped areas and Other Public Improvements within the District.

C. Improved Views within the District.

D. Extension of a property’s outdoor areas and green spaces for properties within close proximity to the Improvements.

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.

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.

6.1.b
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CITY OF DIAMOND BAR PAGE 16
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 38
ENGINEER’S REPORT, FISCAL YEAR 2024-25

BY SCICONSULTINGGROUP
Special Benefit
The District was formed by a different engineer of record. From the original Engineer’s Report, the primary special benefits on landscaping are as set forth below:

1. Beautification of the streets which are used by all of the residents in Diamond Bar.

2. A sense of community pride resulting from well-maintained green spaces.

3. The enhancement of the value of property which results from the foregoing benefits.1
In addition, SCI assessment engineers have identified the following special benefits:

Proximity to Improved Landscaped Areas within the District Only the specific properties within close proximity to the Improvements are included in the District. The District has been narrowly drawn to include the properties that receive special benefits from the Improvements. Therefore, property in the District enjoys unique and valuable proximity and access to the Improvements that the public at large and property outside the District do not share.

In absence of the Assessments, the Improvements would not be provided, and the public improvements funded in the District would be degraded due to insufficient funding for maintenance, upkeep and repair. Therefore, the Assessments provide Improvements that are over and above what otherwise would be provided. Improvements that are over and above what otherwise would be provided do not by themselves translate into special benefits but when combined with the unique proximity and access enjoyed by parcels in the District, they provide a direct advantage and special benefit to property in the District.

Access to Improved Landscaped Areas within the District Since the parcels in the District are nearly the only parcels that enjoy close access to the Improvements, they directly benefit from the unique close access to improved landscaping areas and other public improvements that are provided by the Assessments.

This is a direct advantage and special benefit to property in the District. 1 From the Engineer’s Report, Update of Assessment District No. 38, Fiscal Year 2014-15, City of Diamond Bar, dated June 3, 2014

6.1.b
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CITY OF DIAMOND BAR PAGE 17
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 38
ENGINEER’S REPORT, FISCAL YEAR 2024-25

BY SCICONSULTINGGROUP
Improved Views within the Assessment Districts
The City, by maintaining permanent public improvements funded by the Assessments in the District, provides improved views to properties in the District. The properties in the District enjoy close and unique proximity, access and views of the specific Improvements funded in the District; therefore, the improved and protected views provided by the Assessments are another direct and tangible advantage that is uniquely conferred upon property in the District.

Extension of a Property’s Outdoor Areas and Green Spaces for Properties within Close Proximity to the Improvements
In large part because it is cost prohibitive to provide large open land areas on property in the District, the residential, commercial and other benefiting properties in the District do not have large outdoor areas and green spaces. The Improvements within the District provide additional outdoor areas that serve as an effective extension of the land area for proximate properties because the Improvements are uniquely proximate and accessible to property in close proximity to the Improvements. The Improvements, therefore, provide an important, valuable and desirable extension of usable land area for the direct advantage and special benefit of properties in the District because such properties have uniquely good and close proximity to the Improvements.

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

6.1.b
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CITY OF DIAMOND BAR PAGE 18
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 38
ENGINEER’S REPORT, FISCAL YEAR 2024-25

BY SCICONSULTINGGROUP
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.

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.

6.1.b
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CITY OF DIAMOND BAR PAGE 19
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 38
ENGINEER’S REPORT, FISCAL YEAR 2024-25

BY SCICONSULTINGGROUP
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 the properties outside the District but with frontage abutting the Improvements cannot be assessed by the District, this is a form of general benefit to other property. The primary way that parcels outside the district benefit by the Improvements is from views.

Therefore, parcels that abut the landscape areas and are not separated from the Improvements by a privacy fence are counted for this general benefit. Since very few of the Improvements lie at the District boundary near occupied parcels, there are very few parcels in this category. The general benefit to property outside of the District is calculated as follows.

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.
18 Parcels Outside District
18,422 Parcels In the District
18 18 + 18,422 = 0.10%
Calculation:

Assumptions:

General Benefit to Property Ouside the District

6.1.b
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CITY OF DIAMOND BAR PAGE 20
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 38
ENGINEER’S REPORT, FISCAL YEAR 2024-25

BY SCICONSULTINGGROUP
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 major roads, rail lines and other regional facilities because such properties used for regional purposes could provide indirect benefits to the public at large. Approximately 4.43% of the land area in the District is used for such regional purposes, so this is a measure of the general benefits to property within the District.

Benefit To The Public At Large
The general benefit to the public at large can be estimated by the proportionate amount of time that the District’s Improvements are used and enjoyed by individuals who are not residents, employees, customers or property owners in the District. It should be noted that these Improvements do not attract the public at large in the same way as park improvements – and they confer far less benefit to the public at large than do similar park improvements. In essence, the public does not visit an area to enjoy landscaping in the same way as they may visit a park.

One way to measure the special benefit to the general public is by the vehicle trips through an area with Improvements by people who are not residents within the District.

Of the four ways benefits are conferred (proximity, access, views, extension of a property’s green space, and creation of lots), the only benefit that is conferred by way of pass-by vehicle trips is views, which accounts for 25% of the total benefits. This is further reduced to 10% due the brevity of the views and because views are less critically important and are enjoyed much less often to the average non-resident driver than to a resident.

Specific data is not available for the number of vehicle trips by non-residents of the District past the Improvements, which lie mostly on arterial roadways. A conservative estimate of vehicle trips by non-residents is 50% of all vehicle trips. Therefore (50% of 10% =) 5.00% of the benefits from the other Improvements are general benefits to the public at large.

Total General Benefits
Using a sum of these three measures of general benefit, we find that approximately 9.53% of the benefits conferred by the Improvements may be general in nature and should be funded by sources other than the assessment.

6.1.b
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CITY OF DIAMOND BAR PAGE 21
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 38
ENGINEER’S REPORT, FISCAL YEAR 2024-25

BY SCICONSULTINGGROUP
Outside the District
Inside the District
Public At Large
Total General Benefit
Landscaping General Benefit Calculation

0.10%

4.43%

5.00%

9.53%
Although this analysis finds that 9.53% of the assessment may provide general benefits from the Improvements, the Assessment Engineer establishes a requirement for a minimum contribution from sources other than the assessments of 10%. This minimum contribution above the measure of general benefits will serve to provide additional coverage for any other general benefits.

Current General Benefit Contribution from the City
This general benefit cannot be funded from the Assessments; it must be funded from other sources such as the City’s General Fund or other non-District funds. These contributions can also be in the form of in-lieu contributions to the installation and maintenance of the Improvements such as other City assets that support and protect the Improvements. The City of Diamond Bar will contribute both monetary and in-lieu resources to ensure that the general benefits conferred by the proposed Improvements are not funded by the District’s Assessments.

A summary and quantification of these other contributions from the City is discussed below:

The City of Diamond Bar owns, maintains, rehabilitates and replaces curb and gutter along the border of the District Improvements. This curb and gutter serves to support, contain, retain, manage irrigation flow and growth, and provide a boundary for the Improvements.

The contribution from the City towards general benefit from the maintenance, rehabilitation, and replacement of the curb and gutter is conservatively estimated to be 5%.

The City owns and maintains a storm drainage system along the border of the District Improvements. This system serves to prevent flooding and associated damage to the Improvements, and manage urban runoff including local pollutants loading from the Improvements. The contribution from the City towards general benefit from the maintenance, and operation of the local storm drainage system is conservatively estimated to be 5%.

6.1.b
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CITY OF DIAMOND BAR PAGE 22
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 38
ENGINEER’S REPORT, FISCAL YEAR 2024-25

BY SCICONSULTINGGROUP
The City owns and maintains local public streets along the border of the District Improvements. These public streets provide access to the Improvements for its enjoyment as well as efficient maintenance. The contribution from the City towards general benefit from the maintenance of local public streets is conservatively estimated to be 5%.

The value of the construction of the improvements can be quantified and monetized as an annuity. Since this construction was performed and paid for by non-assessment funds, this “annuity” can be used to offset general benefit costs and is conservatively estimated to contribute 10%.

The total General Benefit is liberally quantified at 10% which is entirely offset by the conservatively quantified total non-assessment contribution towards general benefit described above of 25%. Therefore, no additional General Benefit must be funded by the City.

Method of Apportionment
The development of an Assessment methodology requires apportioning to determine the relative special benefit for each property. As the District was formed by a different engineer of record, the precise language from the most recent Engineer’s Report is included below:

The net amount to be assessed upon lands within the District in accordance with this report is apportioned by a formula and method which fairly distributes the amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each lot or parcel from the Improvements, namely the maintenance and servicing of public landscaping improvements within such District. The maintenance and servicing of public landscaping improvements installed and constructed in public places in the City of Diamond Bar provides a special benefit which is received by each and every lot or parcel within the District, tending to enhance their value.

The primary benefits on landscaping are set forth below:

1. Beautification of the streets which are used by all of the residents in Diamond Bar.

2. A sense of community pride resulting from well-maintained green spaces.

3. The enhancement of the value of property which results from the foregoing benefits.

6.1.b
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CITY OF DIAMOND BAR PAGE 23
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 38
ENGINEER’S REPORT, FISCAL YEAR 2024-25

BY SCICONSULTINGGROUP
The existing land use information indicates that well over 90 percent of the parcels within the City of Diamond Bar are residences. Because the special benefits derived apply equally to all residents and parcels, it has been determined that all assessable parcels would receive the same net assessment.2
Annual Assessment Calculation
For fiscal year 2024-25 the amount of Assessments for the District is not increased from prior years. The assessment per parcel is $15.

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 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 thencurrent 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. 2 From the Engineer’s Report, Update of Assessment District No. 38, Fiscal Year 2014-15, City of Diamond Bar, dated June 3, 2014

6.1.b
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CITY OF DIAMOND BAR PAGE 24
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 38
ENGINEER’S REPORT, FISCAL YEAR 2024-25

BY SCICONSULTINGGROUP
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.

6.1.b
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CITY OF DIAMOND BAR PAGE 25
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 38
ENGINEER’S REPORT, FISCAL YEAR 2024-25

BY SCICONSULTINGGROUP
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 2: 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 $ 50,557
Operating Expenses & Services $ 534,700
Total for Services $ 585,257
Less General Fund Contribution $ (308,477)
Net Amount to Assessments $ 276,780

CITY OF DIAMOND BAR
LANDSCAPING ASSESSMENT DISTRICT NO. 38

6.1.b
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CITY OF DIAMOND BAR PAGE 26
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 38
ENGINEER’S REPORT, FISCAL YEAR 2024-25

BY SCICONSULTINGGROUP
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

6.1.b
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CITY OF DIAMOND BAR PAGE 27
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 38
ENGINEER’S REPORT, FISCAL YEAR 2024-25

BY SCICONSULTINGGROUP
Assessment Diagram
The District boundary is conterminous with the City Limits. The parcels to be assessed in Landscaping Assessment District No. 38 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.

6.1.b
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CITY OF DIAMOND BAR PAGE 28
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 38
ENGINEER’S REPORT, FISCAL YEAR 2024-25

BY SCICONSULTINGGROUP

6.1.b
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CITY OF DIAMOND BAR PAGE 29
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 38
ENGINEER’S REPORT, FISCAL YEAR 2024-25

BY SCICONSULTINGGROUP

Page 29 ends

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.

6.1.b
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Agenda #: 6.2
Meeting Date: July 16, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: LEVYING ASSESSMENTS ON LANDSCAPE ASSESSMENT
DISTRICT NO. 39-2022 FOR FISCAL YEAR 2024/25.

STRATEGIC
GOAL: Safe, Sustainable & Healthy Community
RECOMMENDATION:

A. Receive presentation, open Public Hearing to receive testimony, close Public Hearing; and
B. Adopt Resolution No. 2024-30 to levy and collect assessments for Landscape Assessment District No. 39-2022 for Fiscal Year 2024/25.

FINANCIAL SUMMARY:

The assessments generated by this District in the amount of $665,215, and $31,249 of General Fund Contribution (6.62% General Benefit), with a $447,097 Fund Balance Carryover, are included for the operation and maintenance costs in the Fiscal Year 2024/25 Budget Special Fund No. 239.

BACKGROUND/DISCUSSION:

As part of the assessment district updates, the City must undergo a three-step process.

This is the final part of the process where the City Council conducts a public hearing on the District’s proposed annual assessment, after which the Council will consider the related resolution confirming the levy assessments. Throughout the entire process, all proceedings for the maintenance of improvements have been pursuant to the provisions of the Landscape and Lighting Act of 1972 of Part 2 Division 15 of the Streets and Highways Code of the State of California and applicable provisions of Proposition 218, Article 10 XIIID of the California Constitution.

On April 2, 2024, the City Council adopted Resolution No. 2024-10, ordering the City Engineer to prepare and file an Engineer's Report related to maintenance of

6.2 Packet Pg. 392
improvements in Landscaping Assessment District No. 39-2022 (District) and any assessment thereon for Fiscal Year 2024/25.

On June 18, 2024, the City Council adopted Resolution No. 2024-24, declaring the City's intention to levy and collect assessments for the District and directing staff to advertise the Public Hearing to be set for the July 16, 2024, regular meeting.

The attached Engineer’s Report for the City’s Landscaping Assessment District Number 39-2022 (Attachment 2), which has been prepared pursuant to provisions of the Landscaping and Lighting Act of 1972 of Part 2 of Division 15 of the Streets and Highways Code of the State of California, includes authority for the report, estimated costs of operation and maintenance, a diagram for the District and the assessments.

The estimated number of parcels within the District is 1,246 parcels. The Engineer’s Report 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 the District. Said estimated cost results in a proposed SingleFamily 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-RiversideOrange County Consumer Price Index (“CPI”) per year without further vote or ballot proceeding. The annual CPI from December 2022 to December 2023 was 3.47%.

The assessments will be utilized for the general maintenance of slopes, open space areas, and the five (5) mini parks within the District.

LEGAL REVIEW:

The City Attorney has reviewed and approved the Resolution as to form.

PREPARED BY:

REVIEWED BY:

Attachments:

6.2 Packet Pg. 393

1. 6.2.a Resolution No. 2024-30 (LAD 39-2022)

2. 6.2.b LLAD 39 Engineer's Final Report for FY2024-25

6.2 Packet Pg. 394
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 the 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 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

6.2.a
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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 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

6.2.a
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Resolution No. 2024-30
3 ATTEST:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAINED: COUNCIL MEMBERS:
________________________
Kristina Santana, City Clerk

6.2.a
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Resolution No. 2024-30
4 Exhibit “A”

6.2.a
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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

6.2.b
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City of Diamond Bar
Landscaping Assessment District No. 39-2022
Engineer’s Report, Fiscal Year 2024-25
Page i
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6.2.b
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City of Diamond Bar
Landscaping Assessment District No. 39-2022
Engineer’s Report, Fiscal Year 2024-25
Page ii
City 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

6.2.b
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City of Diamond Bar
Landscaping Assessment District No. 39-2022
Engineer’s Report, Fiscal Year 2024-25
Page iii
(This Page Intentionally Left Blank)

6.2.b
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City of Diamond Bar
Landscaping Assessment District No. 39-2022
Engineer’s Report, Fiscal Year 2024-25
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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

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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

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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’simprovements 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”).

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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.

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.

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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.

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

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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.

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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.

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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).

The assessment proceeds will be exclusively used for Improvements within the District plus incidental expenses.

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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

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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

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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.

Discussion of Benefit
In summary, the Assessments can only be levied based on the special benefit to property.

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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:

Proximity, improved access and views, in addition to the other special benefits listed herein further strengthen the basis of these assessments.

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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.

Improved Views 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.

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Extension of a Property’s Outdoor Areas and Green Spaces for Properties within Close Proximity to the Improvements
In large part because it is cost prohibitive to provide large open land areas on property in the District, the residential, commercial, and other benefiting properties in the District do not have large outdoor areas and green spaces. The Improvements within the District provide additional outdoor areas that serve as an effective extension of the land area for proximate properties because the Improvements are uniquely proximate and accessible to property in close proximity to the Improvements. The Improvements, therefore, provide an important, valuable and desirable extension of usable land area for the direct advantage and special benefit of properties in the District because such properties have uniquely good and close proximity to the Improvements.

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.

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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 = GeneralBenefit
+ Special
Benefit

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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.

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.

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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.

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.

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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.

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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.

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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.

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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 SingleFamily 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.

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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 dayto-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.

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City of Diamond Bar
Landscaping Assessment District No. 39-2022
Engineer’s Report, Fiscal Year 2024-25

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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.

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City of Diamond Bar
Landscaping Assessment District No. 39-2022
Engineer’s Report, Fiscal Year 2024-25

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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.

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City of Diamond Bar
Landscaping Assessment District No. 39-2022
Engineer’s Report, Fiscal Year 2024-25

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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.

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

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City of Diamond Bar
Landscaping Assessment District No. 39-2022
Engineer’s Report, Fiscal Year 2024-25

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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 forthe 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

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City of Diamond Bar
Landscaping Assessment District No. 39-2022
Engineer’s Report, Fiscal Year 2024-25

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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.

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City of Diamond Bar
Landscaping Assessment District No. 39-2022
Engineer’s Report, Fiscal Year 2024-25

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City of Diamond Bar
Landscaping Assessment District No. 39-2022
Engineer’s Report, Fiscal Year 2024-25

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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.

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Agenda #: 6.3
Meeting Date: July 16, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: LEVYING ASSESSMENTS ON LANDSCAPE ASSESSMENT
DISTRICT NO. 41-2021 FOR FISCAL YEAR 2024/25.

STRATEGIC
GOAL: Safe, Sustainable & Healthy Community
RECOMMENDATION:

A. Receive presentation, open Public Hearing to receive testimony, close Public Hearing; and
B. Adopt Resolution No. 2024-31 to levy and collect assessments for Landscape Assessment District No. 41-2021 for Fiscal Year 2024/25.

FINANCIAL IMPACT:

The assessments generated by this District in the amount of $311,346, and $11,955 of General Fund Contribution (3.84% General Benefit), with an $157,185 Fund Balance Carryover, are included for the operation and maintenance costs in the Fiscal Year 2024/25 Budget Special Fund No. 241.

BACKGROUND/DISCUSSION:

As part of the assessment district updates, the City must undergo a three-step process.

This is the final part of the three-step process in which the City Council conducts a public hearing on the District’s proposed annual assessment, and subsequently considers the related resolution confirming the levy assessments. Throughout the entire process, all proceedings for the maintenance of improvements have been pursuant to the provisions of the Landscape and Lighting Act of 1972 of Part 2 Division 15 of the Streets and Highways Code of the State of California and applicable provisions of Proposition 218, Article 10 XIIID of the California Constitution.

On April 2, 2024, the City Council adopted Resolution No. 2024-11, ordering the City Engineer to prepare and file an Engineer's Report related to maintenance of

6.3 Packet Pg. 433
improvements in Landscaping Assessment District No. 41-2021 (District) and any assessment thereon for Fiscal Year 2023/24.

On June 18, 2024, the City Council adopted Resolution No. 2024-25, declaring the City's intention to levy and collect assessments for the District and directing staff to advertise the Public Hearing to be set for the July 16, 2024, regular meeting.

The attached Engineer’s Report for the City’s Landscaping Assessment District Number 41-2021 (Attachment 2), which has been prepared pursuant to provisions of the Landscaping and Lighting Act of 1972 of Part 2 of Division 15 of the Streets and Highways Code of the State of California, includes authority for the report, estimated costs of operation and maintenance, a diagram for the District and the assessments.

The estimated number of parcels within the District is 554 parcels. The Engineer’s Report contains a full and detailed description of the improvements, the boundaries of the assessment district, and the proposed assessments upon assessable lots and parcels of land within the District 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.

LEGAL REVIEW:

The City Attorney has reviewed and approved the Resolution as to form.

PREPARED BY:

REVIEWED BY:

Attachments:

1. 6.3.a Resolution No. 2024-31 (LAD 41-2021)

2. 6.3.b LLAD 41-2021 Engineer's Final Report for FY2024-25

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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 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 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

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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 8. The assessments are levied without regard to property valuation.

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

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Resolution No. 2024-31
3 ATTEST:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAINED: COUNCIL MEMBERS:
________________________
Kristina Santana, City Clerk

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Resolution No. 2024-31
4 Exhibit “A”
Landscape Assessment District 41-2021

6.3.a
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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

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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)

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CITY OF DIAMOND BAR
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25
Page iii
City 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
Public Works Director
David Liu
City Attorney
Omar Sandoval
Engineer of Work
Edric Kwan, P.E.

SCI Consulting Group

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CITY OF DIAMOND BAR
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25
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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

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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

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CITY OF DIAMOND BAR
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25

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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.

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CITY OF DIAMOND BAR
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25

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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.

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CITY OF DIAMOND BAR
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25

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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.

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CITY OF DIAMOND BAR
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25

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Golden Hill Neighborhood Association v. City of San Diego (2011) 199 Cal.

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CITY OF DIAMOND BAR
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25

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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.

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CITY OF DIAMOND BAR
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25

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The assessment proceeds will be exclusively used for Improvements within the District plus incidental expenses.

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CITY OF DIAMOND BAR
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25

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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

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CITY OF DIAMOND BAR
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25

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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: Assessment Rate Determination

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

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CITY OF DIAMOND BAR
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25

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Discussion of Benefit
In summary, the Assessments can only be levied based on the special benefit to property.

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CITY OF DIAMOND BAR
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25

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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.

Proximity, improved access and views, in addition to the other special benefits listed herein further strengthen the basis of these assessments.

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CITY OF DIAMOND BAR
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25

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Special Benefit
SCI assessment engineers have identified the following special benefits:

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CITY OF DIAMOND BAR
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25

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CITY OF DIAMOND BAR
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25

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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

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CITY OF DIAMOND BAR
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25

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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.

A formula to estimate the general benefit is listed below:

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CITY OF DIAMOND BAR
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25

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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.

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%

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CITY OF DIAMOND BAR
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25

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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 passby 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.

6.3.b
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CITY OF DIAMOND BAR
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25

Page 17 ends

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 SingleFamily 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.

6.3.b
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CITY OF DIAMOND BAR
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25

Page 18 ends

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%
Weight SFR Condo
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.

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CITY OF DIAMOND BAR
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25

Page 19 ends

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.

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.

Annual 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.

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CITY OF DIAMOND BAR
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25

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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 thencurrent 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.

6.3.b
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CITY OF DIAMOND BAR
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25

Page 21 ends

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.

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

6.3.b
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CITY OF DIAMOND BAR
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25

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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.

Dated: July 16, 2024 Engineer of Work
By
Edric W. H. Kwan, P.E.

License No. C062829

6.3.b
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CITY OF DIAMOND BAR
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25

Page 23 ends

6.3.b
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CITY OF DIAMOND BAR
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25

Page 24 ends

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.

6.3.b
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CITY OF DIAMOND BAR
LANDSCAPE AND LIGHTING ASSESSMENT – DISTRICT NO. 41-2021 ENGINEER’S REPORT, FISCAL YEAR 2024-25

Page 25 ends

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.

6.3.b
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Agenda #: 7.1
Meeting Date: July 16, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: AMENDMENTS TO THE DIAMOND BAR CITY CODE TO PROHIBIT SMOKING IN CITY PARKS.

STRATEGIC
GOAL: Safe, Sustainable & Healthy Community
RECOMMENDATION:

A. Determine that the proposed ordinance is not subject to the California Environmental Quality Act ("CEQA"); and
B. Introduce for first reading by title only, waive full reading of the Ordinance, and schedule the second reading and adoption at the next regularly scheduled City Council Meeting:

ORDINANCE 04 (2024): “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR, CALIFORNIA, ADDING SECTION 12.00.470 (SMOKING PROHIBITED IN CITY PARKS) TO DIVISION 2 (PARK RULES AND REGULATIONS) OF CHAPTER 12.00 (PARKS AND RECREATION) OF TITLE 12 (STREETS, SIDEWALKS AND PUBLIC PROPERTY) OF THE DIAMOND BAR CITY CODE TO PROHIBIT SMOKING IN CITY PARKS.”
FINANCIAL IMPACT:

None.

BACKGROUND:

Parks in the City of Diamond Bar play a vital role in promoting physical exercise, outdoor activities, and the overall well-being of park visitors. They offer spaces for people to connect with nature, reduce stress, relax mentally, and serve as community gathering places fostering social interactions and a sense of belonging.

Despite the strong smokefree laws in California, park visitors still face health risks from

7.1 Packet Pg. 470
exposure to secondhand smoke. According to the Centers for Disease Control and Prevention (“CDC”), there is no risk-free level of exposure to secondhand smoke, and even brief exposures can lead to serious health issues and death. The CDC estimates that secondhand smoke is responsible for approximately 41,000 deaths among nonsmokers each year, including deaths from lung cancer and heart disease.

Additionally, smoking-related litter and discarded cigarette butts can impact the cleanliness and maintenance of parks, posing environmental hazards and additional upkeep costs.

While California State law prohibits smoking within 25 feet of playgrounds or tot lot sandbox areas and within 20 feet from public building doors, it also allows cities to enact complete bans or regulations on smoking. Section 12.00.500 of the Diamond Bar Municipal Code (“DBMC”) currently prohibits smoking on or around hiking trails within the City. However, apart from this provision and the state law, no regulations specifically address smoking in parks within Diamond Bar. To date, over 400 California jurisdictions have adopted additional laws that further restrict smoking in outdoor recreation areas.

The proposed Ordinance (Attachment 1) would prohibit smoking within City parks.

ANALYSIS:

Adopting specific regulations to address smoking in parks is essential for the overall well-being and safety of the community. Aligning with Diamond Bar’s strategic goal of ensuring a Safe, Sustainable, and Healthy Community, the proposed ordinance expands on existing state law and bans smoking within City parks.

The ordinance defines smoking as the release of gases, particles, or vapors into the air and the act of inhaling, exhaling, or carrying lighted cigars, cigarettes, or other products intended for human inhalation, including tobacco smoke, marijuana, or cannabis smoke, or crack cocaine or heroin smoke. This also includes smoking from any electronic or battery-operated device used to deliver nicotine or other substances, such as electronic cigarettes (e-cigarettes), vapes, or vape pens.

Smoking will be prohibited within City parks, and a 50-foot perimeter around parks, including parking lots. However, the proposed ordinance does not apply to smoking on private property if a park perimeter encroaches on it or on paved public sidewalks bordering the park or any public street and sidewalk within the City. The Diamond Bar Center is excluded from this proposed ordinance due to its use for private rentals, where smoking will still be allowed during reservations, subject to existing California state law that prohibits smoking inside public buildings, and extends to outdoor areas within 20 feet of a main exit, entrance, and operable window of a public building.

Smoking during reservations at other City facilities located within City parks will be prohibited. Furthermore, the proposed ordinance also prohibits the disposal of any tobacco product or instrument, such as cigarettes, cigars, matches, electronic smoking devices, or matches in areas where smoking is prohibited. It should be noted that places where smoking is prohibited under State and Federal law will still apply.

The proposed ordinance establishes an enforcement mechanism and is enforceable by any member of the Los Angeles County Sheriff’s Department (“LASD”) who is authorized to enforce the provisions of the DBMC. The ordinance is designed to be self7.1 Packet Pg. 471
educating through visible signage and community outreach materials. While the LASD is authorized to enforce any violation of the ordinance, much enforcement is likely to be reactive. Still, the LASD will maintain awareness of the City’s smoking regulations, warn and educate the public about the City’s smoking ban in City parks, and enforce the ordinance as needed. Violation of the ordinance will be deemed an infraction and punishable by Chapter 1.04 of the DBMC. Infractions are subject to the following penalties:
• $100.00 fine for the first violation
• $200.00 fine for the second violation within a 12-month period • $500.00 fine for a third or more violations within a 12-month period Penalties are not expected to be common. Therefore, it is recommended that the City Council approve the introduction of the Ordinance (Smoking Prohibited in City Parks), to be read by title only and waive further reading of the ordinance.

ENVIRONMENTAL REVIEW:

The City has determined that the proposed Ordinance is not subject to the California Environmental Quality Act (“CEQA”) in that it is an ordinance of general policy and procedure. It does not constitute a project within the meaning of CEQA and has no potential to result in either a direct or a reasonably foreseeable indirect physical change in the environment. Therefore, the Ordinance is exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3), as the Ordinance is covered by the general rule that CEQA only applies to projects, and only to those projects which have the potential for causing a significant effect on the environment.

LEGAL REVIEW:

The City Attorney has reviewed and approved the Ordinance as to form.

PREPARED BY:

REVIEWED BY:

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Attachments:

1. 7.1.a Ordinance No. 04 (2024) - Smoking Prohibited in City Parks

7.1 Packet Pg. 473
ORDINANCE NO. 04 (2024)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR, CALIFORNIA, ADDING SECTION 12.00.470 (SMOKING
PROHIBITED IN CITY PARKS) TO DIVISION 2 (PARK RULES AND REGULATIONS) OF CHAPTER 12.00 (PARKS AND RECREATION) OF TITLE 12 (STREETS, SIDEWALKS AND PUBLIC PROPERTY) OF THE DIAMOND BAR CITY CODE TO PROHIBIT SMOKING IN CITY PARKS.

WHEREAS, parks provide one of the few affordable entertainment options for individuals and families; and
WHEREAS, tobacco use causes death and disease and impose great social and economic costs; and
WHEREAS, exposure to secondhand smoke anywhere has negative health impacts, and exposure to secondhand smoke can occur at significant levels outdoors; and
WHEREAS, comprehensive smoke free laws have proven to be the only effective way of eliminating secondhand smoke exposure; and WHEREAS, California Health and Safety Code Section 104495, prohibits smoking within a certain distance of playgrounds, tot lot sandbox areas, youth sporting events, and authorizes cities to enact smoking bans that are more restrictive related to smoking around playgrounds, tot lot sandbox areas, and youth sporting events; and
WHEREAS, California Health and Safety Code Section 118880 declares that tobacco smoke is a hazard to the health of the general public; and WHEREAS, California Health and Safety Code Section 118910 states that local governing bodies may completely ban the smoking of tobacco or may regulate smoking in any matter not inconsistent with state law; and WHEREAS, tobacco litter and matches dropped in parks are particularly dangerous to young children who step on them or ingest them, sometimes while they are still hot, and creates additional work for maintenance staff; and WHEREAS, tobacco products are, in addition, poisonous to wildlife which inhabit or visit the parks and are generally detrimental to the environment; and WHEREAS, eliminating smoking in parks will ensure that nonsmokers may breathe air free from the hazardous effects of secondhand smoke, will protect the public’s health, comfort and welfare and promote a healthier environment.

7.1.a
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Ordinance No. 04 (2024)
2 NOW THEREFORE, the City Council of the City of Diamond Bar hereby ordains as follows:

Section 1. The City Council finds that the above recitals are true and correct.

Section 2. Section 12.00.470 is hereby added to Division 2 (Park Rules and Regulations) of Chapter 12.00 (Parks and Recreation) of Title 12 (Streets, Sidewalks and Public Property) of the Diamond Bar City Code to read as follows:

Sec. 12.00.470 - Smoking prohibited in City parks.
(a) Purpose and Findings. The City Council finds that smoking of tobacco, or any other weed, plant, or substance is a positive danger to health and a material annoyance, inconvenience, discomfort and a health hazard to those present in confined and unconfined spaces, and in order to serve the public health, safety, and welfare, the declared purpose of this section is to prohibit the smoking of tobacco products, or any other weed, plant, or other substances within the boundaries of any public park.
(b) Definitions. As used in this section, the following terms, words and phrases have the meanings as defined in this section, unless another meaning is clearly apparent from the context:

City means the City of Diamond Bar.

Cannabis has the meaning set forth in California Business Professions Code Section 26001, as that section may be amended from time to time.

Electronic Smoking Device means an electronic and/or battery-operated device that can be used to deliver an inhaled dose of nicotine, or any other substance, including any component, part, or accessory of such a device, whether or not sold separately. Electronic Smoking Device includes any such device, whether manufactured, distributed, marketed, or sold as an electronic cigarette, an electronic cigar, an electronic cigarillo, an electronic pipe, an electronic hookah, or any other product name or descriptor.

Enforcement official shall have the same meaning as section 1.04.020.

Park shall have the same meaning as section 12.00.020 of this Code. The Diamond Bar Center is excluded from this definition.

Smoke means the gases, particles, or vapors released into the air as a result of combustion, electrical ignition, or vaporization, when the apparent or usual purpose of the combustion, electrical ignition, or vaporization is human inhalation of the byproducts, except when the combusting or vaporizing material contains no tobacco, nicotine, marijuana, cannabis, cocaine, or heroin and the

7.1.a
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Ordinance No. 04 (2024)
3 purpose of inhalation is solely olfactory, such as, for example, smoke from incense. The term Smoke includes, but is not limited to tobacco smoke, electronic smoking device vapors, marijuana or cannabis smoke, crack cocaine or heroin smoke.

Smoking means the release of gases, particles, or vapors into the air as the result of combustion, electrical ignition, or vaporization and/or inhaling, exhaling, burning, or carrying any lighted, heated, or ignited cigar, cigarette, cigarillo, pipe, hookah, Electronic Smoking Device, or any plant product, including but not limited to tobacco and marijuana, intended for human inhalation.
(c) Smoking Prohibited. Smoking is prohibited and is unlawful within all areas posted as a no smoking area by the city by signs conspicuously posted at or near the primary entrance(s) to a public place or area where smoking is prohibited, including, but not limited to:
(1) within any park, including its parking lots.
(2) Within fifty (50) feet of any park perimeter, provided that if any such perimeter encroaches on private property, this prohibition shall not apply to the private property. This prohibition shall also not apply to any paved public sidewalk immediately abutting the boundary of the park or to persons and vehicles travelling along the public streets and sidewalks.
(d) Disposal of Smoking Waste. No person shall dispose of any tobacco product or instrument including, but not limited to, cigarettes or cigars, or any part of a cigarette or cigar, matches, Electronic Smoking Device, or any other combustible substance, in any place where smoking is prohibited under this section. (e) Administration. The no smoking regulations established by this section shall be administered by any Enforcement Official.
(f) Violations and Penalties.
(1) Infraction. A violation of this section is an infraction and shall be punished pursuant to Chapter 1.04 of this Code.
(2) Nonexclusive Remedies and Penalties. Punishment under this section shall not preclude punishment pursuant to Health and Safety Code Section 13002, Penal Code Section 374.4, or any other law proscribing the act of littering or smoking. Nothing in this section shall preclude any person from seeking any other remedies, penalties or procedures provided by law. (3) Nothing in this section shall preclude the enforcement of State and Federal Laws that pertain to smoking.

7.1.a
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Ordinance No. 04 (2024)
4 Section 3. The adoption of this Ordinance is not a project within the meaning of the California Environmental Quality Act ("CEQA") Guidelines in that it (a) is an ordinance of general policy and procedure and does not constitute a project within the meaning of CEQA and (b) has no potential for resulting in either a direct or a reasonably foreseeable indirect physical change in the environment. As such, this Ordinance is exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3), which states that CEQA applies only to projects, and only to those projects which have the potential for causing a significant effect on the environment.

Section 4. If any section, subdivision, paragraph, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each section, subdivision, paragraph, sentence, clause and phrase thereof, irrespective of the fact that any one (or more) section, subdivision, paragraph, sentence, clause or phrase had been declared invalid or unconstitutional.

Section 5. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause a certified copy of this Ordinance to be posted within fifteen (15) days after this Ordinance is passed and adopted, in the Office of the City Clerk and two additional public places, together with the vote for and against the same.

PASSED AND ADOPTED, at a regular meeting of the City Council of the City of Diamond Bar on this ___ day of ________, 2024.

CITY OF DIAMOND BAR
__________________________
Stan Liu, Mayor
ATTEST:

I, Kristina Santana, City Clerk of the City of Diamond Bar, California, do hereby certify that the foregoing Ordinance was introduced at the regular meeting of the City Council held on the 16th day of July, 2024, and was duly passed and adopted at a regular meeting of the City Council held on the _____ day of _________, 2024, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:
__________________________
Kristina Santana, City Clerk

7.1.a
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Agenda #: 7.2
Meeting Date: July 16, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: CITY COUNCIL TRAVEL, EXPENSE AND REIMBURSEMENT POLICY REVISIONS.

STRATEGIC
GOAL: Responsible Stewardship of Public Resources
RECOMMENDATION:

A. Adopt Resolution No. 2024-32, approving City Council Policy 2024-01, Travel, Expense and Reimbursement Policy; and
B. Adopt Resolution No. 2024-33, amending the Compensation and Benefits Plan, Schedule G.

FINANCIAL IMPACT:

None.

BACKGROUND:

Over the years, the City Council has adopted various Council Policies, many dating back to early cityhood. These policies also require periodic review and updating. The Travel, Expense and Reimbursement Policy was established by the City Council on March 21, 2006. The Policy was subsequently revised on March 4, 2008, and was last revised on October 7, 2014 with the adoption of City Council Resolution No. 2014-40 (Attachment 5). The Travel, Expense and Reimbursement Policy is also intended to comply with Government Code Sections 53232.2 and 53232.3 for reporting and reimbursement of business expenses to City Council Members and other City Officials (Attachment 6).

Comprehensive updates to the current Travel, Expense and Reimbursement Policy F-5 are proposed which include reformatting the existing policy to the most recent policy format, updating language throughout, and making other non-substantive changes.

Proposed changes that are more substantive in nature are highlighted below.

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On July 1, 2024, the City Council Policy Review Subcommittee, comprised of Mayor Pro Tem Teng and Council Member Chou, reviewed and recommended approval of the proposed revised Policy to the City Council.

The attached Resolution and City Council Travel, Expense & Reimbursement Policy 2024-01 (Attachments 1 and 2) are intended to replace in its entirely City Council Policy F-5 and rescind Resolution No. 2014-40. The attached Resolution amending the Compensation Plan (Attachments 3 and 4) will update reference to the Technology Stipend for City Council Members.

ANALYSIS:

The proposed Travel, Expense and Reimbursement Policy is intended to replace the current City Council Policy F-5. The new Policy has been reformatted with updated language, layout, numbering scheme and other non-substantive changes consistent with the most recent policy formats.

The following table highlights the more substantive changes proposed in the revised Policy, and includes a cross reference to the existing Policy sections for comparison purposes:

New Section Proposed Changes Existing Section
Ref.

2. Definitions New section added with key
definitions.

N/A

4.1.3 - Employees Travel Authorization Form to be
approved by Department
Director for in-state budgeted
travel rather than CM. Out-ofstate or non-budgeted travel requires CM approval.

Removes reference to approval
45-days prior and is required
prior to incurring any travel
expenses.
3B

4.1.4 – International Travel Added international travel for employees also subject to City
Council approval.
15 4.2.2 – Automobile For those that receive an auto
allowance, added clarification on
how milage reimbursement is
calculated for extraordinary
travel beyond a 60-mile radius
from City Hall. Applies to both to
and from trips in each direction.
4A

7.2 Packet Pg. 479

4.2.3 – Air Travel Updated to include economy/
coach class or equivalent lowest
class of seating.
4B

4.2.4 – Ground
Transportation
Updated to include ride sharing
services and public
transportation expenses.
4D

4.2.5 – Car Rental Removed reference to separate
approval from CM. Covered as
part of the Travel Authorization
Form.
4C

4.2.6 – Parking and Tolls Expanded from just airport
parking to parking in general,
including any tolls.
4E

4.2.7 – Meals Same amounts established in
original Policy in March 2006.

Revised the daily per diem rates
for each meal:

Breakfast $15
Lunch $20
Dinner $35
to a cumulative amount of
$75/day for all meal expenses,
including tax and reasonable
gratuities.
6A
Existing Section 7,
Communications
This section has been deleted.

Long time practice to provide
Council Technology Stipend.

Added reference in
Compensation Reso. Increase
amount from $43.25 to
$50/month for consistency.
7 4.3.1.4 Unauthorized
Expenses
Added “guests” in the list of
unauthorized expenses.
9D

4.4 - Advances Eliminates cash advances for
per diem expenses.
8 4.5.5 – Violations Added clarifying language that
the City Council is responsible
for imposing any actions on
individual City Council members
and Appointed officials, and City
Manager is responsible for
imposing any actions on City
employees, for violations of the
Policy.
17 4.5.5 - Violations Removes reference to Civil
penalties. Covered under
Prosecution for misuse of funds
in Section 4.5.5.4
17D

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It is therefore recommended that the City Council approved the revised Travel, Expense and Reimbursement Policy and the Amended Schedule G to the City’s Compensation and Benefits Plan.

PREPARED BY:

REVIEWED BY:

Attachments:

1. 7.2.a Resolution No. 2024-32 Travel Expense Reimbursement Policy

2. 7.2.b Exhibit A - Travel Expense Reimbursement Policy 2024-01

3. 7.2.c Resolution No. 2024-33 Amending Compensation Plan

4. 7.2.d Exhibit A - Benefit Matrix 2024-25 Schedule G Amendment Effective July 16, 2024

5. 7.2.e F-5 Travel Expense & Reimbursement Policy 2014

6. 7.2.f Gov Code Sections 53232.2 and .3

7.2 Packet Pg. 481
RESOLUTION NO. 2024-32

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND

BAR APPROVING A TRAVEL, EXPENSE AND REIMBURSEMENT

POLICY IN ACCORDANCE WITH CALIFORNIA GOVERNMENT CODE
SECTIONS 53232.2 AND 53232.3.

WHEREAS, elected and appointed City Officials are responsible for promoting and protecting public health, safety and welfare;
WHEREAS, these duties may require elected and appointed City Officials to travel to attend meetings with constituents and other local, state, federal and intergovernmental officials, professional educational seminars and conferences, and other events benefiting the City;
WHEREAS, it is in the public interest to adopt a policy in accordance with state law that sets appropriate guidelines for City-sponsored travel and related expenses and reimbursements; and
WHEREAS, the City Council desires to amend the existing Travel, Expense and Reimbursement Policy F-5 which was last updated on October 7, 2014 with the adoption Resolution No. 2014-40.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Diamond Bar as follows:

Section 1. Resolution No. 2014-40 is hereby rescinded in its entirety.

Section 2. City Council Policy 2024-01, Travel, Expense & Reimbursement Policy, is hereby approved as shown in Exhibit A attached hereto and incorporated herein by reference, thereby replacing City Council Policy F-5.

Section 3. This Resolution is adopted in accordance with Government Code Sections 53232.2 and 53232.3 so that the City of Diamond Bar may reimburse appropriate expenses incurred by elected and appointed officials while on authorized travel or otherwise engaged in City business. The City will not reimburse City Officials any amount greater than allowed by this Resolution for expenses incurred during the course of conducting City business, except under extraordinary circumstances with the approval of the City Council.

Section 4. If any part of this Resolution or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications, and, to this end, the provisions of the Resolution are severable.

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Resolution No. 2024-32
2 Section 5. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions, which shall become effective immediately upon its approval.

PASSED, APPROVED, and ADOPTED on this 16th day of July, 2024.

CITY OF DIAMOND BAR:
__________________________
Stan Liu, Mayor
ATTEST:

I, Kristina Santana, City Clerk of the City of Diamond Bar, California, do hereby certify that the foregoing Resolution was duly and regularly passed 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:

ABSTAIN: COUNCIL MEMBERS:
__________________________
Kristina Santana, City Clerk

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Resolution No. 2024-32
3 EXHIBIT A
POLICY 2024-01

TRAVEL, EXPENSE & REIMBURSEMENT POLICY

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City Council Policy and Procedure
Number: 2024-01 Reviewed: As-Needed
Effective Date: 10/7/14 Revised Date(s): 7/16/24
City Council Policy (2024-01) Revised Date: 7/16/2024 Page 1 of 6 Travel, Expense, and Reimbursement Policy

1. Purpose

1.1 The Travel, Expense and Reimbursement Policy (“Policy”) establishes uniform procedures for expenditures and reimbursements incurred by City Council members, appointed officials, and employees in the course of City business. This Policy also establishes travel authorization, expense reimbursement and reporting standards in compliance with California Government Code Sections 53232.2 and 53232.3.

2. Definitions

2.1 “City business” refers to the official duties of City Council members, appointed officials, and employees with a reasonable connection to:

2.1.1 City policy positions or strategic goals and department operations;

2.1.2 Advocacy efforts with local, regional, state, and/or federal representatives;

2.1.3 Participation in local, regional, state, and/or national organizations that advance the City’s interests;

2.1.4 Business attraction, retention, and economic development activities;

2.1.5 Education, training, and professional development; and

2.1.6 City-sponsored and co-sponsored events.

2.2 “City Council member(s)” refers to the Mayor, Mayor Pro Tem, and each member of the City Council.

2.3 “Appointed official(s)” refers to all members of City Council-appointed Commissions, committees, and/or task forces.

2.4 “Reimbursement” means all forms of payment for expenses incurred by City officials and employees in the course of their official duties whether paid directly by the City (City -issued purchasing card or City check) or advanced by city officials and employees with personal funds and later reimbursed from City funds.

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City Council Policy (2024-01) Revised Date: 7/16/2024 Page 2 of 6

3. Policy

3.1 Expenses incurred by City Council members, appointed officials, and employees in the course of conducting City business are eligible for reimbursement, provided that the expenses do not exceed the rates set forth in this Policy and the amount appropriated in the annual budget.

3.2 The establishment of reasonable limits on expense reimbursement assures a prudent and responsible use of public funds and allows officials and employees to attend beneficial meetings, conferences, seminars, and events.

3.3 Absent unusual circumstances and only with the permission of the City Council, expense reimbursements will not exceed the amounts set forth in this policy.

3.4 This Policy applies to all City Council members, appointed officials, and employees.

4. Procedure

4.1 Approval of Travel

4.1.1 General. All reimbursement of expenses is contingent upon the availability of appropriated budgetary resources.

4.1.2 Council Members and Appointed Officials. Overnight travel for City Council Members shall be arranged through the City Manager’s Office and is subject to all provisions of this policy except as otherwise noted. Travel for appointed members of City Commissions shall be coordinated and arranged by the corresponding
department.

4.1.3 Employees. Approval is required before incurring any travel expenses and is granted via a completed Travel Authorization Form with the appropriate signatures. For budgeted travel in California, approval is given by the employee’s Department Director. For non-budgeted or out-of-state travel, approval is given by both the Department Director and City Manager.

4.1.4 International Travel. All international travel must be authorized by the City Council and is subject to all provisions contained in this policy.

4.2 Authorized Expenses

4.2.1 General. Registration fees for approved conferences, seminars, events and meetings are reimbursable, and shall be paid in in advance by the City whenever possible. All travel arrangements

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City Council Policy (2024-01) Revised Date: 7/16/2024 Page 3 of 6 should be made using the most economical (cost-effective and time-efficient) means available. Reasonable efforts to secure government, group, and/or conference rates should be made when making travel arrangements.

4.2.2 Automobile. City officials and employees who do not receive an automobile allowance should use City vehicles to the greatest extent possible. When necessary to use private automobiles, reimbursement will be at the current Internal Revenue Service (IRS) standard mileage rate per mile driven for business use. Mileage will be calculated to and from City Hall or the employee’s home, whichever distance is less. Out-of-area trips shall be reimbursed at the lesser of actual mileage expense or the least expensive available direct airfare.

For Council Members and/or employees that receive an automobile allowance, mileage reimbursement is available only for the distance beyond a 60-mile radius from City Hall. For example, if the person receives an automobile allowance and the destination is 100 miles from City Hall, 40 miles are reimbursable in each direction (80 miles are reimbursable for a roundtrip of 200 mile).

Pursuant to Government Code Section 1223, City Council members may elect to receive a flat monthly expense reimbursement of $300 for automobile expenses related to performance of their duties within a 60-mile radius of the City. The City Council finds that this amount accurately reflects actual automobile expenses within the City and its immediate environs. No monthly bill is required for reimbursement of this amount.

4.2.3 Air Travel. Air travel costs are reimbursable, based on the shortest and most direct route in economy/coach class or equivalent lowest class of seating. Whenever possible, air travel shall be booked at least fourteen (14) days in advance, so as to receive the lowest fares possible. Baggage fees and reasonable gratuities shall be considered reimbursable expenses. Flight insurance and in-flight beverages and entertainment are not reimbursable expenses.

4.2.4 Ground Transportation. Taxi, shuttle, ridesharing, and/or public transportation costs, including reasonable gratuities, incurred in the course of conducting City business are reimbursable when the cost of such fares is equal or less than the cost of car rentals, gasoline, and parking combined, or when such transportation is necessary for time-efficiency. Whenever feasible, the lowest cost transportation provider should be utilized.

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City Council Policy (2024-01) Revised Date: 7/16/2024 Page 4 of 6

4.2.5 Car Rental. If deemed to be more economical than ground transportation alternatives, car rental expenses are reimbursable, including damage insurance coverage and fuel costs. Approval for the use of car rentals is required through the Travel Authorization Form.

4.2.6 Parking and Tolls. Parking and tolls incurred while conducting City business are reimbursable. Long-term parking must be used at airports.

4.2.7 Meals. Meals associated with City business will be reimbursed at a not-to-exceed daily amount of $75, including tax and reasonable gratuities, for all meals. Meals provided with an event or conference registration shall be taken whenever possible. Meals taken in place of such prepaid meals are not reimbursable.

4.2.8 Lodging. Overnight lodging expenses are reimbursable at the singleoccupancy room rate. from the night preceding the start of the event through the night preceding the close of the event. If associated with a conference, lodging expenses must not exceed the group rate published by the conference sponsor for the meeting in question if such rates are available at the time of booking. In the event lodging is not available at the conference location, lodging may be secured at an alternate nearby location with every attempt to secure a rate not exceeding the published conference rate.

Travelers must request government rates, when available. Lodging rates that are equal or less than government rates are presumed to be reasonable and reimbursable for purposes of this policy. When an additional charge is imposed for City business related
internet/broadband access, the charge may be reimbursed as part of the room rate.

4.3 Unauthorized Expenses

4.3.1 Non-business/personal expenditures are not reimbursable, including but not limited to:

4.3.1.1 Personal expenses, such as laundering or barbering, etc.

4.3.1.2 Entertainment, except when it is a regularly scheduled part of the meeting being attended.

4.3.1.3 Purchase of alcoholic beverages.

4.3.1.4 Any expenses incurred by a city official or employee’s spouse, partner, family members, or their guests in

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City Council Policy (2024-01) Revised Date: 7/16/2024 Page 5 of 6 connection with conference registration, event sponsorship, meals, transportation, or miscellaneous expenses.

4.3.1.5 Any personal expenses incurred outside the authorized event’s duration. For example, if a city official or employee elects to travel to an event in advance or stay longer on personal business, the City need only reimburse the official for roundtrip travel costs and costs associated with the authorized event.

4.3.1.6 Political or charitable contributions or events.

4.3.1.7 Expenses for which city officials receive reimbursement from another agency.

4.4 Advances

4.4.1 No cash per diem will be issued. To the greatest extent possible, all travel expenses, including conference and event registration, transportation, and lodging will be paid in advance using a departmental purchasing card.

4.4.2 All other expenses paid using personal funds will be reimbursed upon submittal of an approved Expense Report with itemized receipts.

4.5 Reporting and Compliance

4.5.1 All reimbursement claims must be reported by submitting the Expense Report form (Exhibit B). The Expense Report must be filed with the Finance Department within 14 days of returning from the approved trip or incurring the cost. Expense Reports must be accompanied by itemized receipts documenting each reported expense.

4.5.2 Inability to provide such documentation in a timely fashion may result in the expense being borne by the City official or employee. All reported expenses are subject to verification of accuracy and compliance with this policy.

4.5.3 At the next public meeting, Council Members and/or Appointed Officials must briefly report on the purpose of the travel. If multiple City officials attended, a joint report may be made.

4.5.4 All agency expenditures are public records subject to disclosure under the California Public Records Act.

4.5.5 The City Council is responsible for imposing any actions on individual City Council members and Appointed officials, and the City

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City Council Policy (2024-01) Revised Date: 7/16/2024 Page 6 of 6 Manager is responsible for imposing any actions on City employees, for violations of this policy which may result in:

4.5.5.1 Loss of travel and/or reimbursement privileges;

4.5.5.2 A demand for restitution from the City;

4.5.5.3 The City’s reporting the expenses as income to the City official or employee to state and federal tax authorities;

4.5.5.4 Prosecution for misuse of public resources;

4.5.5.5 For City Council members and Appointed officials, removal from an appointed commission, committee or board; and

4.5.5.6 For employees, discipline up to and including termination.

5. References

5.1 California Government Code Sections 53232.2 and 53232.3.

6. Exhibits

6.1 Travel Authorization Form

6.2 Expense Report

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RESOLUTION NO. 2024-33

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND

BAR, AMENDING CITY OF DIAMOND BAR COMPENSATION PLAN
AND FRINGE BENEFITS SCHEDULE G.

WHEREAS, the City Council of the City of Diamond Bar adopted and amended the City of Diamond Bar Compensation and Benefits Plan (hereafter, the “Plan”) by adoption of Resolution No. 2024-20 for Fiscal Year 2024-25 effective June 29, 2024; and WHEREAS, the City Council of the City of Diamond Bar desires to reference and include a monthly increase of $6.75 to the Technology Stipend benefit allotment for City Council Members that may be used as a reimbursement for the purchase and maintenance of personal cell phones, tablets, laptops, printers, and/or phone/internet service in order to conduct City business.

NOW, THEREFORE BE IT RESOLVED, the City Council of the City of Diamond Bar, does hereby resolve as follows:

Section 1. The Compensation and Benefits Plan Schedule G adopted by Resolution 2024-20, is hereby replaced in their entirety with the Compensation & Benefits Plan Schedule G attached hereto as Exhibit A, which shall be effective July 16, 2024.

Section 2. If any part of this Resolution or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications, and, to this end, the provisions of the Resolution are severable.

Section 3. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions, which shall become effective immediately upon its approval.

PASSED, APPROVED AND ADOPTED this 16th day of July 2024.

CITY OF DIAMOND BAR
__________________________
Stan Liu, Mayor

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Resolution No. 2024-33
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 16th day of July 2024, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:
__________________________
Kristina Santana, City Clerk
Attachment: “Exhibit A” - Compensation and Benefits Plan Schedule G; Amended July 16, 2024

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Resolution No. 2024-33
3 EXHIBIT A
Compensation and Benefits Plan Schedule G; Amended July 16, 2024

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Schedule G
Effective 6/29/2024
Amended by City Council 7/16/2024
1 CITY OF DIAMOND BAR
FY 2024-2025 BENEFITS
Benefits Paid By Eligibility Details
Benefit Allotment City Paid Designated Officials,
Regular Full-Time
and Regular PartTime employees
upon hire.

A monthly allotment of $1,720 (pro-rated for regular part-time employees) which can be applied to selected benefit options. a) Members of the City Council, Executive Management and employees defined as full-time exempt receive $1,750 per month.
b) Premiums for selected benefits options are paid from the monthly benefit allotment. The total of all premiums for selected benefits that exceed the monthly health benefit allotment are paid at the employees’ expense as a biweekly pre-taxed payroll deduction. c) Employees who are not encumbering their entire benefit allotment will have those funds applied to a Section 457 deferred compensation plan offered through
MissionSquare.

Health Benefit
Allotment
Designated officials,
Regular Full-Time
and Regular PartTime employees
upon hire or during
the annual open
enrollment period.

Health coverage offered through the California Public
Employees’ Retirement System (CalPERS). Employees may
select from available HMO and PPO plan options. Premiums vary depending on the health plan selected. If health
coverage is selected, the premium is deducted from the
monthly benefit allotment.

Dental City Paid*/
Benefit
Allotment
Designated Officials,
Regular Full-Time
and Regular PartTime employees
upon hire or during
the annual open
enrollment period.

Two dental plans are available (Delta Care Prepaid or Delta Dental DPO) to Designated Officials, Regular Full-Time and Regular Part-Time employees and their eligible dependents. *The City pays for employee coverage. If dependent
coverage is selected, the additional premium is deducted from the monthly benefit allotment.

Delta Care
Delta Care is a pre-paid dental plan, which offers affordable HMO coverage. This option provides orthodontics coverage.

Delta Dental
Delta Dental is Delta’s Preferred Option (DPO) plan, which allows visits to any dentist of choice. The program provides the maximum benefit when using a DPO dentist. DPO
dentists are Delta dentists who have agreed to charge DPO patients reduced fees.

Vision City Paid*/
Benefit
Allotment
Designated Officials,
Regular Full-Time
and Regular PartTime employees
upon hire or during
the annual open
enrollment period.
*The City pays for employee coverage. If dependent
coverage is selected, the premium is deducted from the
monthly benefit allotment.

Vision Services Plan (VSP) network provides exams,
prescription glasses, contact lenses, and a second pair of glasses each year. Co-pays apply.

Life/ ADD
Insurance
City Paid Designated Officials,
Regular Full-Time
and Regular PartTime employees
upon hire.

Life Insurance and Accidental Death & Dismemberment
(ADD) Insurance provided to all Designated Officials
($50,000 benefit); Executive Management ($200,000);
Exempt Mgt. ($150,000); and Regular Full-Time and Regular Part- Time employees ($75,000 benefit).

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Schedule G
Effective 6/29/2024
Amended by City Council 7/16/2024
2 Supplemental
Life Insurance
Employee
Paid
through the
Benefit
Allotment
Designated Officials,
Regular Full-Time
and Regular PartTime employees
upon hire. This is an
optional benefit.

If Supplemental Life Insurance is selected, the premium is deducted from the monthly benefit allotment. Supplemental insurance is purchased in increments of $10,000 up to
$300,000. A spouse is eligible up to half the amount selected by the employee in increments of $10,000. The cost for each $10,000 of coverage is based on age.

State Disability
Insurance (SDI)
Employee
Paid
through
mandatory
payroll
deduction
Regular Full-Time,
Regular Part-Time,
Part-Time/seasonal,
and intermittent
employees upon hire.

This benefit provides affordable, worker-funded benefits to eligible workers suffering a full or partial loss of wages due to disabilities which are not work related for up to 12 months.

Disability also includes elective surgery and disabilities related to pregnancy or childbirth.

Short-term &
Long-term
Disability
(STD/LTD)
City Paid Regular Full-Time
and Regular PartTime employees
upon hire.

This benefit provides income replacement in the event of a covered disability at 60% of salary up to a maximum of $1500 per week.

Retirement City/
Employee
Designated Officials,
Regular Full-Time
and Regular PartTime employees
upon hire.

A comprehensive retirement through the Public Employees’ Retirement System (CalPERS). Regular Full-Time and
Regular Part-Time employees of the City are automatically enrolled as a member of CalPERS and thus DO NOT
participate in Social Security. To become vested in CalPERS an employee must be a member for a minimum of five (5)
years.

Current employees and employees hired after January 1,
2013 who are existing CalPERS members or a member of an agency with reciprocity with the City of Diamond Bar will be enrolled in the 2% @ 55 retirement benefit formula.

Employees hired after January 1, 2013 who have never been a CalPERS member, or is a member of a retirement system (CalPERS) reciprocal but has a break in service longer than six months will be enrolled in the 2% @ 62 retirement benefit formula. Employees in this formula will contribute half of the normal benefit cost for this retirement benefit.

Retirement
Benefit for
Designated
Officials
Ineligible for
CalPERS
City Paid
(Contribution
into City
sponsored
457
Deferred
Comp. Plan
in amount
equal to
current
CalPERS
Emp. rate.)
Designated Officials
that are retired from
CalPERS at time of
election into office
OR retire from
CalPERS during term
in office.

City contribution to the Designated Official’s City sponsored 457 Deferred Compensation plan (MissionSquare). The
monthly contribution will be equal to the City’s current CalPERS rate of contribution for Employee only. (Such
Designated Officials would not be eligible for CalPERS
retirement benefits as CalPERS law prohibits re-enrollment after retirement.)
RetirementDeferred
Compensation
Employee
mandatory
payroll
deduction.

Part-Time/Seasonal
and Intermittent
employees upon hire.

A minimum employee contribution rate of 7.5% pre-tax of wages to a City sponsored 457 Deferred Compensation plan (MissionSquare).
1959 Survivor
Benefit
City/
Employee,
through
Benefit
Allotment
Designated Officials,
Regular Full-Time
and Regular PartTime employees
upon hire.

This benefit, provided through CalPERS Retirement, is paid along with other death benefits, whether or not the employee was eligible to retire at the time of their death. The monthly benefit amount formula depends on the number of eligible survivors.

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Schedule G
Effective 6/29/2024
Amended by City Council 7/16/2024
3 Employee
Assistance
Program (EAP)
City Paid Designated Officials,
Regular Full-Time
and Regular PartTime employees
upon hire.

Face-to-face assessment, treatment, and follow-up to help resolve a broad range of personal, work, and family
problems. Employees and eligible family members can
receive up to 3-sessions per incident with professional counselors for early intervention and treatment.

Section 125
Cafeteria Plans/
Reimbursement
Accounts
Employee
Paid
Designated Officials,
Regular Full-Time
and Regular PartTime employees
upon hire. This is an
optional benefit.

At the beginning of the plan year, each participating
employee selects an amount up to the maximum set by the City for each plan. The amount selected is calculated into a bi-weekly, pre-taxed payroll deduction.

Healthcare Flexible Spending Account- Also known as a
Healthcare Reimbursement Account, the employee may
designate pre-tax dollars, up to a maximum of $2,500 per calendar year for out-of-pocket healthcare expenses not covered by their medical, dental, or vision insurance plans.

Dependent Care Flexible Spending Account- Also known as a Day Care or Childcare Reimbursement Account, the
designated pre-tax dollars, up to a maximum of $5,000 per household- per calendar year, must be related to expenses which are for dependent care that enables the employee to remain gainfully employed.

COBRA Employee
Paid
Designated Officials,
Regular Full-Time
and Regular PartTime employees,
enrolled in qualifying
health, dental, vision,
and EAP plans.

The Consolidated Omnibus Budget Reconciliation Act of
1985 (COBRA) provides for the continuation of health care coverage to certain employees who terminated employment and beneficiaries of employees who die, become disabled or are divorced. Employees become eligible for continued
coverage upon termination of service, whether voluntary or not (other than termination for gross misconduct), retirement or reduction in hours worked. For these employees and their dependents, continued coverage is available for the time period set forth by law, at their expense.

Medicare City/
Employee,
through
mandatory
payroll
deduction
Designated Officials,
Regular Full-Time
and all Part-Time
employees upon hire.

Pursuant to Revenue Billing 86-68 of the Internal Revenue Code, all employees hired after March 31, 1987 has 1.45 percent of their base salary deducted from their paycheck to be paid to Medicare. The City matches the 1.45 percent as mandated by law.

Deferred
Compensation
Employee
Paid
Designated Officials,
Regular Full-Time,
Regular Part-Time
and Temporary PartTime employees
upon hire.

A Section 457 deferred compensation plan is made available through MissionSquare. Employees not encumbering their
entire health benefit allotment will have those excess funds deferred into this plan. Employees may also elect to have additional contributions at their expense as a pre-taxed payroll deduction. Total deferral contributions are not to exceed limits under Section 457 of the Internal Revenue

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Schedule G
Effective 6/29/2024
Amended by City Council 7/16/2024
4 Code.

Temporary Part-Time employees are required to contribute

7.5% of their pre-tax salary to a deferred compensation account in lieu of participating in Social Security.

Automobile
Allowance
City Paid Designated Officials,
Executive Mgt. and
Exempt Mgt. upon
hire.

A monthly car allowance of $120 for Exempt Management,
$250 for Executive Management and $300 for City Council Members in lieu of mileage reimbursement.

Tuition
Reimbursement
City Paid Regular Full-Time
and Regular PartTime employees
upon hire.

Full-time and regular part-time (on a pro-rated basis)
employees are eligible to receive reimbursement in the
amount of $1500 per fiscal year, for college-level or
university-level educational courses.

Personal
Computer Loan
Program
Employee
Paid
Regular Full-Time
and Regular PartTime employees
upon hire.

Interest-free loans between $250 and $2,500 for the purpose of financing a personal computer, a printer, and/or Citycompatible software are available to eligible employees so they can learn and gain experience by working with a
personal computer away from the office and outside of
regular business hours. An employee may purchase a more expensive system, but he/she must pay the balance over
$2,500. The loan covers 90% of the total price of the
equipment/software being purchased. The employee pays
the remaining 10% of the purchase price at the time of
purchase. Loans are made on a first-come, first-served basis based on available funds. Once the money for the employee loans has been obligated, the fund will be replenished
through payroll deductions from outstanding loans. New
loans will then be made as funds become available. Loans will be for a maximum term of 24 months and will be repaid through payroll deductions on a biweekly basis.

Technology
Stipend
City Paid Designated Officials,
Executive Mgt.,
Exempt Mgt., and
full-time staff based
on emergency
response
responsibilities.

Executive and Exempt Management are eligible to receive a monthly stipend of $100 as a reimbursement for the purchase and maintenance of personal cell phones, tablets, laptops, printers, and/or phone/internet service in order to conduct City business and to respond in emergency situations. City Council Members and Ddesignated key full-time staff that are required to respond in emergency situations will be eligible for a $50 stipend on a monthly basis.

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TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. )
CHAPTER 2. Officers and Employees [53200 - 53299] ( Chapter 2 added by Stats. 1949, Ch. 81. ) 53232.2.

GOVERNMENT CODE - GOV
ARTICLE 2.3. Compensation [53232 - 53232.4] ( Article 2.3 added by Stats. 2005, Ch. 700, Sec. 3. ) (a) When reimbursement is otherwise authorized by statute, a local agency may reimburse members of a legislative body for actual and necessary expenses incurred in the performance of official duties, including, but not limited to, activities described in Article 2.4 (commencing with Section 53234).
(b) If a local agency reimburses members of a legislative body for actual and necessary expenses incurred in the performance of official duties, then the governing body shall adopt a written policy, in a public meeting, specifying the types of occurrences that qualify a member of the legislative body to receive reimbursement of expenses relating to travel, meals, lodging, and other actual and necessary expenses. (c) The policy described in subdivision (b) may also specify the reasonable reimbursement rates for travel, meals, and lodging, and other actual and necessary expenses. If it does not, the local agency shall use the Internal Revenue Service rates for reimbursement of travel, meals, lodging, and other actual and necessary expenses as established in Publication 463, or any successor publication. (d) If the lodging is in connection with a conference or organized educational activity conducted in compliance with subdivision (c) of Section 54952.2, including, but not limited to, ethics training required by Article 2.4 (commencing with Section 53234), lodging costs shall not exceed the maximum group rate published by the conference or activity sponsor, provided that lodging at the group rate is available to the member of a legislative body at the time of booking. If the group rate is not available, the member of a legislative body shall use comparable lodging that is consistent with the requirements of subdivisions (c) and (e). (e) Members of the legislative body shall use government and group rates offered by a provider of transportation or lodging services for travel and lodging when available.
(f) All expenses that do not fall within the adopted travel reimbursement policy or the Internal Revenue Service reimbursable rates as provided in subdivision (c), shall be approved by the governing body, in a public meeting before the expense is incurred, except as provided in subdivision (d).
(g) If a member of a legislative body chooses to incur additional costs that are above the rates established pursuant to this section and those costs have not been approved pursuant to subdivision (f), then the member of a legislative body may do so at his or her own expense. (h) This section shall not supersede any other laws establishing reimbursement rates for local agencies. (Amended by Stats. 2006, Ch. 643, Sec. 10. Effective January 1, 2007.) 6/26/24, 8:40 AM leginfo.legislature.ca.gov/faces/printCodeSectionWindow.xhtml?lawCode=GOV&article=2.3.&sectionNum=53232.2.&op_statues=2… https://leginfo.legislature.ca.gov/faces/printCodeSectionWindow.xhtml?lawCode=GOV&article=2.3.&sectionNum=53232.2.&op_statues=2006&op_cha… 1/1

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TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. )
CHAPTER 2. Officers and Employees [53200 - 53299] ( Chapter 2 added by Stats. 1949, Ch. 81. ) 53232.3.

GOVERNMENT CODE - GOV
ARTICLE 2.3. Compensation [53232 - 53232.4] ( Article 2.3 added by Stats. 2005, Ch. 700, Sec. 3. ) (a) If a local agency reimburses members of a legislative body for actual and necessary expenses incurred in the performance of official duties, then a local agency shall provide expense report forms to be filed by the members of the legislative body for reimbursement for actual and necessary expenses incurred on behalf of the local agency in the performance of official duties. Reimbursable expenses shall include, but not be limited to, meals, lodging, and travel.
(b) Expense reports shall document that expenses meet the existing policy, adopted pursuant to Section 53232.2, for expenditure of public resources.
(c) Members of a legislative body shall submit expense reports within a reasonable time after incurring the expense, as determined by the legislative body, and the reports shall be accompanied by the receipts documenting each expense. (d) Members of a legislative body shall provide brief reports on meetings attended at the expense of the local agency at the next regular meeting of the legislative body.
(e) All documents related to reimbursable agency expenditures are public records subject to disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). (Amended by Stats. 2021, Ch. 615, Sec. 195. (AB 474) Effective January 1, 2022. Operative January 1, 2023, pursuant to Sec. 463 of Stats. 2021, Ch. 615.)
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Diamond Bar City CouncilJuly 16, 2024

Diamond Bar City Council
July 16, 2024