Cities Index.
Agenda packet

Diamond Bar City Council
June 16, 2026

Document
Agenda packet
Meeting
June 16, 2026
Body
Diamond Bar City Council
Pages
655
Original file
170.0 MB
Text extracted from the city's file for reading and search. Open the original on diamondbarca.api.civicclerk.com. That file is the official record.

+ OVERHEAD % + = COMBINED%
NORMAL + + = 98.12%
OVERTIME + + = 98.20%
FEE % 10%

BILLING INFORMATION

COST PROPOSAL
Specific Rate of Compensation (use for on-call or as-needed contracts) City of Diamond Bar On-Call Construction Management / Project Management and Inspection Services FRINGE
BENEFIT % GENERAL ADMINISTRATION %
Consultant or Subconsultant ___FCG_(Prime)__________________ Contract No. _________ Date 1/22/2026

CALCULATION INFORMATION
$ 268.16 178.70 $ 357.55 $ 1/1/2025 12/31/2025 82.00 $
$ 270.85 180.49 $ 361.13 $ 1/1/2026 12/31/2026 82.82 $ 1.00% $ 273.55 182.30 $ 364.74 $ 1/1/2027 12/31/2027 83.65 $ 1.00% $ 276.29 184.12 $ 368.39 $ 1/1/2028 12/31/2028 84.48 $ 1.00% $ 279.05 185.96 $ 372.07 $ 1/1/2029 12/31/2029 85.33 $ 1.00% $ 268.16 178.70 $ 357.55 $ 1/1/2025 12/31/2025 82.00 $
$ 270.85 180.49 $ 361.13 $ 1/1/2026 12/31/2026 82.82 $ 1.00% $ 273.55 182.30 $ 364.74 $ 1/1/2027 12/31/2027 83.65 $ 1.00% $ 276.29 184.12 $ 368.39 $ 1/1/2028 12/31/2028 84.48 $ 1.00% $ 279.05 185.96 $ 372.07 $ 1/1/2029 12/31/2029 85.33 $ 1.00% $ 268.16 178.70 $ 357.55 $ 1/1/2025 12/31/2025 82.00 $
$ 270.85 180.49 $ 361.13 $ 1/1/2026 12/31/2026 82.82 $ 1.00% $ 273.55 182.30 $ 364.74 $ 1/1/2027 12/31/2027 83.65 $ 1.00% $ 276.29 184.12 $ 368.39 $ 1/1/2028 12/31/2028 84.48 $ 1.00% $ 279.05 185.96 $ 372.07 $ 1/1/2029 12/31/2029 85.33 $ 1.00% $ 170.06 113.32 $ 226.74 $ 1/1/2025 12/31/2025 52.00 $
$ 171.76 114.46 $ 229.01 $ 1/1/2026 12/31/2026 52.52 $ 1.00% $ 173.47 115.60 $ 231.30 $ 1/1/2027 12/31/2027 53.05 $ 1.00% $ 175.21 116.76 $ 233.61 $ 1/1/2028 12/31/2028 53.58 $ 1.00% $ 176.96 117.93 $ 235.95 $ 1/1/2029 12/31/2029 54.11 $ 1.00% $ 170.06 113.32 $ 226.74 $ 1/1/2025 12/31/2025 52.00 $
$ 171.76 114.46 $ 229.01 $ 1/1/2026 12/31/2026 52.52 $ 1.00% $ 173.47 115.60 $ 231.30 $ 1/1/2027 12/31/2027 53.05 $ 1.00% $ 175.21 116.76 $ 233.61 $ 1/1/2028 12/31/2028 53.58 $ 1.00% $ 176.96 117.93 $ 235.95 $ 1/1/2029 12/31/2029 54.11 $ 1.00% $ 359.73 239.73 $ 479.64 $ 1/1/2025 12/31/2025 110.00 $ $ 363.33 242.12 $ 484.44 $ 1/1/2026 12/31/2026 111.10 $ 1.00% $ 366.96 244.54 $ 489.28 $ 1/1/2027 12/31/2027 112.21 $ 1.00% $ 370.63 246.99 $ 494.18 $ 1/1/2028 12/31/2028 113.33 $ 1.00% $ 374.34 249.46 $ 499.12 $ 1/1/2029 12/31/2029 114.47 $ 1.00%

1. Names and classifications of consultant (key staff) team members listed.

2. Billing rate = actual hourly rate * (1 + ICR) * (1 + Fee).

3. For named employees enter the actual hourly rate. For classifications only, enter the average hourly rate for that classification.

4. Agreed upon billing rates valid through June 30, but are adjustable per the terms of the RFP when requested in writing 60 days prior to June 30th each year and will be considered with adequate justification for pricing escalations.

Note: Denote all employees subject to prevailing wage with an asterisks (*) Public Outreach
Office Engineer
Scheduler
Water/Wastewater Inspector
SWPPP Inspector
Specialty Inspectors

Page 517 of 655 ends

1450826.1

FIRST AMENDMENT
TO

CONSULTANT SERVICES AGREEMENT
This First Amendment to Consultant Services Agreement (“First Amendment”) is made and entered into as of June 16, 2026, by and between the City of Diamond Bar, a municipal corporation (“City”), and HR Green Pacific, Inc., a California corporation (herein referred to as the “Consultant”) with reference to the following:

A. The City and the Consultant entered into that certain Consultant Services Agreement dated as of June 20, 2023, which is incorporated herein by this reference (the “Original Agreement”); and
B. The City and the Consultant desire to amend the Original Agreement to modify, amend and supplement certain portions thereof.

NOW, THEREFORE, the parties hereby agree as follows:

1. Defined Terms. Except as otherwise defined herein, all capitalized terms used herein shall have the meanings set forth for such terms in the Original Agreement.

2. Revised Term. This First Amendment shall take effect July 1, 2026, and shall continue until June 30, 2028, unless earlier terminated pursuant to the provisions of the Original Agreement.

3. Revised Compensation. The total not-to-exceed compensation set forth in Section 3 of the Original Agreement was the sum of Sixty-Two Thousand Five Hundred Dollars and Zero Cents ($62,500.00).

Section 3 of the Original Agreement is hereby amended to provide for an increase of Thirty-Seven Thousand Five Hundred Dollars and Zero Cents ($37,500.00) so that the total not-to-exceed compensation, as amended by this First Amendment shall not exceed One Hundred Thousand Dollars and Zero Cents ($100,000.00) each Fiscal Year without the prior authorization of the City.
4 Integration. This First Amendment and all attachments hereto (if any) integrate all of the terms and conditions mentioned herein, and supersede all negotiations with respect hereto. This First Amendment amends, as set forth herein, the Original Agreement and except as specifically amended hereby, the Original Agreement shall remain in full force and effect. To the extent that there is any conflict or inconsistency between the terms and provisions of this First Amendment and the terms and provisions of the Original Agreement, the terms and provisions of this First Amendment shall control.

Page 518 of 655 ends

IN WITNESS hereof, the parties enter into this First Amendment on the year and day first above written.
“CONSULTANT” “CITY”
HR Green Pacific, Inc. CITY OF DIAMOND BAR
By: By:

Printed Name: Daniel Fox, City Manager
Title:

By: ATTEST:

Printed Name:

Title:

Kristina Santana, City Clerk
APPROVED AS TO FORM:

Omar Sandoval, City Attorney
*NOTE:If Consultant is a corporation, the City requires the following signature(s):
-- (1) the Chairman of the Board, the President or a Vice-President, AND (2) the Secretary, the Chief Financial Officer, the Treasurer, an Assistant Secretary or an Assistant Treasurer. If only one corporate officer exists or one corporate officer holds more than one corporate office, please so indicate. OR
-- The corporate officer named in a corporate resolution as authorized to enter into this Agreement. A copy of the corporate resolution, certified by the Secretary close in time to the execution of the Agreement, must be provided to the City.

Tina M. York, PE Min Zhou, PE Regional Director Director of Civil Plan Check

Page 519 of 655 ends

Schedule of Fixed Hourly Rates
Firm Name: HR Green Pacific, Inc.

Job Title Hourly
Billing Rate
Prevailing
Wage Rate
Principal-In-Charge $350.00
Project Manager $300 - 350
QA/QC Manager $300 - 350
Municipal Services Manager $240 - 275
Civil Plan Check Manager $240 - 275
Senior Professional/Project Engineer $225 - 275
Traffic Engineer $275 - 310
Professional Engineer $225 - 275
Associate Engineer $175 - 200
Assistant Engineer $135 - 175
Environmental Associate (NPDES) $175 - 200
Senior Civil Plan Reviewer $225 - 275
Civil Plan Reviewer $135 - 200
Map Checker $135 - 225
Public Works Technician $100 - 125
Transportation Manager $175 - 275
Transportation Planner $175 - 275
CAD Designer/Operator $135 - 225
CASp Reviewer/Inspector $225 - 275
Management Analyst $135 - 200
Permit Technician $100 - 125
Construction Manager $175 - 250
Senior Construction/Public Works Inspector $175 - 210 $193 - 222 Construction/Public Works Inspector $125 - 175 $193 - 222 Administrative Assistant $100 - 125

Page 520 of 655 ends

1450826.1

THIRD AMENDMENT
TO

CONSULTANT SERVICES AGREEMENT
This Third Amendment to Consultant Services Agreement (“Third Amendment”) is made and entered into as of June 16, 2026, by and between the City of Diamond Bar, a municipal corporation (“City”), and LAE Associates, Inc., a California corporation (herein referred to as the “Consultant”) with reference to the following:

A. The City and the Consultant entered into that certain Consultant Services Agreement dated as of June 20, 2023, which is incorporated herein by this reference (the “Original Agreement”); and
B. The City and the Consultant entered into that First Amendment to the Original Agreement dated as of November 19, 2024, which is incorporated herein by this reference (the “First Amendment”), which First Amendment and Original Agreement collectively are referred to herein as (the “Agreement”); and
C. The City and the Consultant entered into that Second Amendment to the Original Agreement dated as of November 4, 2025, which is incorporated herein by this reference (the “Second Amendment”), which, Second Amendment, First Amendment, and Original Agreement collectively are referred to herein as (the “Agreement”); and D. The City and the Consultant desire to amend the Agreement to modify, amend and supplement certain portions thereof.

NOW, THEREFORE, the parties hereby agree as follows:

1. Defined Terms. Except as otherwise defined herein, all capitalized terms used herein shall have the meanings set forth for such terms in the Original Agreement.

2. Revised Term of Agreement. This Third Amendment shall take effect on June 16, 2026, and shall continue until June 30, 2028, unless earlier terminated pursuant to the provisions of the Original Agreement.

3. Revised Compensation. The total not-to-exceed compensation set forth in Section 3 of the Original Agreement was the sum of One Hundred Thousand Dollars and Zero Cents ($100,000) per fiscal year. The First Amendment to the Agreement increased the not-to-exceed amount to One Hundred Seventy-Eight Thousand, One Hundred FiftyTwo Dollars and Zero Cents ($178,152.00) for the Fiscal Year 2024/25 only. After the end of the Fiscal Year and for Fiscal Year 2025/26, the not-to-exceed amount went back to ($100,000) per fiscal year.

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1450826.1
The Second Amendment increased the not-to-exceed compensation by Four Hundred Ninety-Nine Thousand, Eight Hundred Seventy Dollars and Zero Cents ($499,870.00) so that, the annual not-to-exceed amount, as amended by the Second Amendment, shall not to exceed Five Hundred Ninety-Nine Thousand, Eight Hundred Seventy Dollars and Zero Cents ($599,870.00) for Fiscal Year 2025/26 without the prior authorization of the City. The added not-to-exceed amount of Four Hundred Ninety-Nine Thousand, Eight Hundred Seventy Dollars and Zero Cents ($499,870.00) for FY2025/26 will be used for the additional tasks specific to a capital improvement project as attached to the Second Amendment and will be carried over in future fiscal years until the aforementioned tasks are completed without amendment to the Agreement.

This Third Amendment is to continue the on-call portion of the Agreement for Fiscal Years 2026/2027 and 2027/2028 with a not-to-exceed amount of One Hundred Thousand Dollars and Zero Cents ($100,000) per year that shall not increase without the prior authorization of the City. This One Hundred Thousand Dollars and Zero Cents ($100,000) per year will be separate from the remaining amount of the Four Hundred Ninety-Nine Thousand, Eight Hundred Seventy Dollars and Zero Cents ($499,870.00) authorization under the Second Amendment, which will carry over to future fiscal years per that Amendment.

4. Integration. This Third Amendment and all attachments hereto (if any) integrate all of the terms and conditions mentioned herein, and supersede all negotiations with respect hereto. This Third Amendment amends, as set forth herein, the Original Agreement and except as specifically amended hereby, the Original Agreement shall remain in full force and effect. To the extent that there is any conflict or inconsistency between the terms and provisions of this Third Amendment and the terms and provisions of the Agreement, the terms and provisions of this Third Amendment shall control.

Page 522 of 655 ends

1450826.1
IN WITNESS hereof, the parties enter into this Third Amendment on the year and day first above written.
“CONSULTANT” “CITY”
LAE ASSOCIATES, INC. CITY OF DIAMOND BAR
By: By:

Printed Name: Daniel Fox, City Manager
Title:

By: ATTEST:

Printed Name:

Title:

Kristina Santana, City Clerk
APPROVED AS TO FORM:

Omar Sandoval, City Attorney
*NOTE:If Consultant is a corporation, the City requires the following signature(s):
-- (1) the Chairman of the Board, the President or a Vice-President, AND (2) the Secretary, the Chief Financial Officer, the Treasurer, an Assistant Secretary or an Assistant Treasurer. If only one corporate officer exists or one corporate officer holds more than one corporate office, please so indicate. OR
-- The corporate officer named in a corporate resolution as authorized to enter into this Agreement. A copy of the corporate resolution, certified by the Secretary close in time to the execution of the Agreement, must be provided to the City.

Page 523 of 655 ends

City of Diamond Bar
On-Call Civil Engineering and Landscape Architectural Services

Page 1 of 1 ends

Fee Schedule
LAE’s hourly rates to perform the requested On-Call Civil Engineering and Landscape Architectural services will be in accordance with the hourly rates shown below. Team members will adhere to the needs of the City of Diamond Bar (City) to complete the requested tasks.

July 1, 2026, through June 30, 2028
with a three percent (3%) escalation clause to be approved by City. 1 Will be adjusted per Department of Industrial Relations (DIR’s) future increases. 2 The stated overtime rate applies to up to four hours of overtime on weekdays and/or up to eight hours of overtime on Saturdays. Any hours worked beyond these limits are billed at the applicable Sunday/holiday rate.

Role Hourly Rate
Principal-In-Charge $250
Senior Civil Engineer (P.E.) $205
Senior Project/Construction Manager (P.E.) $205
Senior Project/Construction Manager $200
Project/Construction Manager (P.E.) $190
Project/Construction Manager $185
Senior Construction Observer/Inspector (Prevailing Wages) 1 $170 Senior Construction Observer/Inspector – Monday to Friday Overtime, Saturday Overtime (Prevailing Wages) 1, 2 $210 Senior Construction Observer/Inspector – Sunday, Holiday Overtime (Prevailing Wages) 1 $240
Senior Analyst $155
Office Engineer/Engineering Coordinator $140
Junior Engineer $110
Junior Engineering Technician $90
Administrative/Technical Assistant $90
Actual Mileage (will be adjusted per IRS guidelines) $0.725/Mile Other Direct Cost (printing, travel, etc.) Actual

Page 524 of 655 ends

1450826.1

SECOND AMENDMENT
TO

CONSULTANT SERVICES AGREEMENT
This Second Amendment to Consultant Services Agreement (“Second Amendment”) is made and entered into as of June 16, 2026, by and between the City of Diamond Bar, a municipal corporation (“City”), and TAIT & Associates, Inc., a California corporation (herein referred to as the “Consultant”) with reference to the following:

A. The City and the Consultant entered into that certain Consultant Services Agreement dated as of June 20, 2023, which is incorporated herein by this reference (the “Original Agreement”); and
B. The City and the Consultant entered into that First Amendment to the Original Agreement dated as of November 7, 2023, which is incorporated herein by this reference (the “First Amendment”), which First Amendment and Original Agreement collectively are referred to herein as (“the Agreement”); and,
C. The City and the Consultant desire to amend the Original Agreement to modify, amend and supplement certain portions thereof.

NOW, THEREFORE, the parties hereby agree as follows:

1. Defined Terms. Except as otherwise defined herein, all capitalized terms used herein shall have the meanings set forth for such terms in the Original Agreement.

2. Revised Term. This Second Amendment shall take effect July 1, 2026, and shall continue until June 30, 2028, unless earlier terminated pursuant to the provisions of the Original Agreement.

3. Revised Compensation. The total not-to-exceed compensation set forth in Section 3 of the Original Agreement was the sum of Fifty Thousand Dollars and Zero Cents ($50,000.00).

Section 3 of the Original Agreement is hereby amended to provide for an increase of Fifty Thousand Dollars and Zero Cents ($50,000.00) so that the total not-to-exceed compensation, as amended by this Second Amendment shall not exceed One Hundred Thousand Dollars and Zero Cents ($100,000.00) each Fiscal Year without the prior authorization of the City.
4 Integration. This Second Amendment and all attachments hereto (if any) integrate all of the terms and conditions mentioned herein, and supersede all negotiations with respect hereto. This First Amendment amends, as set forth herein, the Original Agreement and except as specifically amended hereby, the Original Agreement shall

Page 525 of 655 ends

remain in full force and effect. To the extent that there is any conflict or inconsistency between the terms and provisions of this First Amendment and the terms and provisions of the Original Agreement, the terms and provisions of this First Amendment shall control.

IN WITNESS hereof, the parties enter into this First Amendment on the year and day first above written.
“CONSULTANT” “CITY”
TAIT & Associates, Inc. CITY OF DIAMOND BAR
By: By:

Printed Name: Daniel Fox, City Manager
Title:

By: ATTEST:

Printed Name:

Title:

Kristina Santana, City Clerk
APPROVED AS TO FORM:

Omar Sandoval, City Attorney
*NOTE:If Consultant is a corporation, the City requires the following signature(s):
-- (1) the Chairman of the Board, the President or a Vice-President, AND (2) the Secretary, the Chief Financial Officer, the Treasurer, an Assistant Secretary or an Assistant Treasurer. If only one corporate officer exists or one corporate officer holds more than one corporate office, please so indicate. OR
-- The corporate officer named in a corporate resolution as authorized to enter into this Agreement. A copy of the corporate resolution, certified by the Secretary close in time to the execution of the Agreement, must be provided to the City.

Jacob Vandervis Vice President, COO Page 526 of 655
1450826.1

FIRST AMENDMENT
TO

CONSULTANT SERVICES AGREEMENT
This First Amendment to Consultant Services Agreement (“First Amendment”) is made and entered into as of June 16, 2026, by and between the City of Diamond Bar, a municipal corporation (“City”), and John L. Hunter & Associates, Inc., a California corporation (herein referred to as the “Consultant”) with reference to the following:

A. The City and the Consultant entered into that certain Consultant Services Agreement dated as of June 20, 2023, which is incorporated herein by this reference (the “Original Agreement”); and
B. The City and the Consultant desire to amend the Original Agreement to modify, amend and supplement certain portions thereof.

NOW, THEREFORE, the parties hereby agree as follows:

1. Defined Terms. Except as otherwise defined herein, all capitalized terms used herein shall have the meanings set forth for such terms in the Original Agreement.

2. Revised Term. This First Amendment shall take effect July 1, 2026, and shall continue until June 30, 2028, unless earlier terminated pursuant to the provisions of the Original Agreement.

3. Revised Compensation. The total not-to-exceed compensation set forth in Section 3 of the Original Agreement was the sum of Seventy-Four Thousand Seven Hundred and Seventy Dollars and Zero Cents ($74,770.00).

Section 3 of the Original Agreement is hereby amended to provide for an increase of Twenty-Five Thousand Two Hundred Thirty Dollars and Zero Cents ($25,230.00) so that the total not-to-exceed compensation, as amended by this First Amendment shall not exceed One Hundred Thousand Dollars and Zero Cents ($100,000.00) each Fiscal Year without the prior authorization of the City.
4 Integration. This First Amendment and all attachments hereto (if any) integrate all of the terms and conditions mentioned herein, and supersede all negotiations with respect hereto. This First Amendment amends, as set forth herein, the Original Agreement and except as specifically amended hereby, the Original Agreement shall remain in full force and effect. To the extent that there is any conflict or inconsistency between the terms and provisions of this First Amendment and the terms and provisions of the Original Agreement, the terms and provisions of this First Amendment shall control.

Page 527 of 655 ends

IN WITNESS hereof, the parties enter into this First Amendment on the year and day first above written.
“CONSULTANT” “CITY”
John L. Hunter & Associates, Inc. CITY OF DIAMOND BAR
By: By:

Printed Name: Daniel Fox, City Manager
Title:

By: ATTEST:

Printed Name:

Title:

Kristina Santana, City Clerk
APPROVED AS TO FORM:

Omar Sandoval, City Attorney
*NOTE:If Consultant is a corporation, the City requires the following signature(s):
-- (1) the Chairman of the Board, the President or a Vice-President, AND (2) the Secretary, the Chief Financial Officer, the Treasurer, an Assistant Secretary or an Assistant Treasurer. If only one corporate officer exists or one corporate officer holds more than one corporate office, please so indicate. OR
-- The corporate officer named in a corporate resolution as authorized to enter into this Agreement. A copy of the corporate resolution, certified by the Secretary close in time to the execution of the Agreement, must be provided to the City.

By:

Printed
Q..,..,
Name:
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Trtfe: \J; '-L- l7c,s, c-\1.~ .

Page 528 of 655 ends

John L. Hunter and Associates 6/8/2026
Fee Schedule
Company title Rate ($/hr)
Principal $239
Director $226
Senior Program Manager $213
Program Manager, Senior Engineer $199
Assistant Program Manager, Engineer $178
Lead Specialist, Lead Analyst $168
Senior Specialist, Senior Analyst $157
Specialist II, Analyst II $146
Specialist I, Analyst I $135
Administrative Assistant or Laborer $88
The fee schedule is subject to annual consumer price index (CPI) increases.

Page 529 of 655 ends

Agenda Item #: 6.23
Meeting Date: June 16, 2026

CITY COUNCIL AGENDA REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
SUBJECT: Consultant Services Agreement with Prince Global Solutions, LLC.

STRATEGIC GOAL: Open, Engaged and Responsive Government RECOMMENDATION:

Approve, and authorize the City Manager to sign, the Consulting Services Agreement with Prince Global Solutions, LLC for Federal Advocacy Services through June 30, 2027.

FINANCIAL IMPACT:

The total not-to-exceed amount of the Consultant Services Agreement is $50,500. The amount is based on a monthly retainer of $4,000 plus up to $2,500 in direct expenses. The Fiscal Year 2026/27 Operating Budget includes sufficient funds for such services.

BACKGROUND:

Prince Global Services, LLC, (PGS) has been providing Federal advocacy services directly to the City since 2017. The main focus of the Consultant's services has been on the City's efforts in collaboration with the local, regional, and federal partners to secure funds and support for the State Route SR-57/SR-60 Confluence Project (Project). Over the years, the City has been actively pursuing funding opportunities to expedite the Project delivery to ensure that the Project progresses without a suspension. These efforts led to the successful completion of the construction of Phases I and II of the Project, the design of Phase III, and filling the funding gap of the Phase III construction.

Now that Phase III of the Project is fully funded, and the construction work has commenced, the City will consider focusing on the missing Westbound SR-60 Direct Connector to the Grand Avenue component (WB Connector). The WB Connector was recommended by the 2017 SR-57/SR-60 Confluence Project Supplemental Needs Study (Study). The Study was supported by the City and other local and regional agencies and implemented by the Southern California Association of Governments (SCAG).

Additionally, the City is actively pursuing federal funding opportunities for a variety of projects with support from PGS. Most recently, PGS worked closely with Public Works staff to prepare a Fiscal Year 2027 Community Project Funding request for the Diamond Bar Civic Center Energy Resiliency Project. The application seeks $1.2 million in federal funding through Congresswoman Linda Sánchez's office. While there is no guarantee of funding, the request was accepted and referred to the House Appropriations Committee for consideration as part of the FY 2027 appropriations process.

Page 530 of 655 ends

Agenda Item #: 6.23
Meeting Date: June 16, 2026
ANALYSIS:

On June 17, 2025, the City Council approved an agreement with the Consultant for Federal advocacy services. That agreement is set to expire on June 30, 2025. As a continuation of the advocacy work and consistent with the City's 2024-2027 Strategic Plan, PGS submitted a proposal in response to the City's request (Exhibit "A"). The Consultant's proposed scope of work for the Fiscal Year 2026/27 includes, but is not limited to, the following:

1. Work closely with the San Gabriel Valley Congressional delegation, Senate and House Committee staff, Federal Agency officials, and relevant stakeholder groups on matters that support the City’s Federal priorities.

2. Facilitate requests for Congressional earmarks to support City infrastructure projects, such as parks and community centers.

3. Support future City applications for funding from the Department of Transportation (DOT) and other agency discretionary grant programs;

4. As necessary and requested, continue advocating for the 57/60 Confluence Project before Congress and the Department of Transportation (DOT), as the Project's mainline improvements are underway and the City, LA Metro and the City of Industry are not currently pursuing Federal funding or policy initiatives for the Project. Whenever it becomes necessary, PGS will pursue any Federal funding or policy initiatives in support of the Project as directed by Diamond Bar;

5. Monitor and engage pertinent Congressional consideration of legislation that is of interest to the City;

6. Continue advocating for other policy measures and legislation that will assist the City in securing Federal funding to support local priorities;

7. Consider and monitor other legislation, regulations, and agency actions that would benefit or affect the City;

8. Consider and coordinate Congressional and DOT site visits to the City and otherwise as appropriate; and

9. Plan and coordinate the City’s visits to Washington D.C. as directed and recommend other visits when appropriate.

LEGAL REVIEW:

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

PREPARED BY:

Nicholas Delgado, Management Analyst, Public Works
ATTACHMENTS:

1. Agreement with PGS

Page 531 of 655 ends

1 Professional Services – Non Design
1450836.1

CONSULTANT SERVICES AGREEMENT
[Non-Design Professionals]
THIS AGREEMENT (the "Agreement") is made as of June 16, 2026 by and between the City of Diamond Bar, a municipal corporation ("City") and Prince Global Solutions, LLC, a California limited liability company ("Consultant").

1. Consultant's Services.

Subject to the terms and conditions set forth in this Agreement Consultant shall provide to the reasonable satisfaction of the City the Federal Advocacy Services set forth in the attached Exhibit "A", which is incorporated herein by this reference. As a material inducement to the City to enter into this Agreement, Consultant represents and warrants that it has thoroughly investigated the work and fully understands the difficulties and restrictions in performing the work. Consultant represents that it is fully qualified to perform such consulting services by virtue of its experience and the training, education and expertise of its principals and employees.

David G. Liu, Public Works Director/City Engineer (herein referred to as the “City’s Project Manager”), shall be the person to whom the Consultant will report for the performance of services hereunder. It is understood that Consultant shall coordinate its services hereunder with the City’s Project Manager to the extent required by the City’s Project Manager, and that all performances required hereunder by Consultant shall be performed to the satisfaction of the City’s Project Manager and the City Manager

2. Term of Agreement. This Agreement shall take effect July 1, 2026, and shall continue until June 30, 2027 ("Term"), unless earlier terminated pursuant to the provisions herein.

3. Compensation.

A. City agrees to compensate Consultant for services which Consultant performs to the satisfaction of the City in compliance with the scope of services set forth in Exhibit “A”.

B. The City shall pay Consultant a retainer in monthly increments of Four Thousand Dollars and Zero Cents ($4,000.00).

C. Total payment to Consultant pursuant to this Agreement shall not exceed Fifty Thousand Five Hundred Dollars and Zero Cents ($50,500.00) without prior written consent of the City. This amount shall include all costs, including, but not limited to, all clerical, administrative, overhead, telephone, travel, and all related expenses.

D. Notwithstanding the above, if the City requests Consultant to travel, Consultant shall, upon submission of receipts evidencing the costs incurred, be paid for necessary and reasonable travel expenses in an amount not to exceed Two Thousand Five Hundred Dollars and Zero Cents ($2,500.00).

Page 532 of 655 ends

2 Professional Services – Non Design
1450836.1

4. Payment.

A. Consultant shall submit to City an invoice for the services completed, authorized expenses and authorized extra work actually performed or incurred.

B. All such invoices shall state the basis for the amount invoiced, including services completed, the number of hours spent and any extra work performed.

C. Payment will be made only after submission of proper invoices.

D. City will pay Consultant the amount properly invoiced within 30 days of receipt, which sum shall be paid within 30 days of completion of the work.

E. Payment shall constitute payment in full for all services, authorized costs and authorized extra work covered by that invoice.

5. Change Orders. No payment for extra services caused by a change in the scope or complexity of work, or for any other reason, shall be made unless and until such extra services and a price therefore have been previously authorized in writing and approved by the City Manager or his designee as an amendment to this Agreement.

The amendment shall set forth the changes of work, extension of time, if any, and adjustment of the fee to be paid by City to Consultant.

6. Priority of Documents. In the event of any inconsistency between the provisions of this Agreement and any attached exhibits, the provisions of this Agreement shall control.

7. Status as Independent Contractor.

A. Consultant is, and shall at all times remain as to City, a wholly independent contractor. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise act on behalf of City as an agent, except as specifically provided herein. Neither City nor any of its agents shall have control over the conduct of Consultant or any of Consultant's employees, except as set forth in this Agreement. Consultant shall not, at any time, or in any manner, represent that it or any of its agents or employees are in any manner employees of City.

B. Consultant agrees to pay all required taxes on amounts paid to Consultant under this Agreement, and to indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. In the event that City is audited by any Federal or State agency regarding the independent contractor status of Consultant and the audit in any way fails to sustain the validity of a wholly independent contractor relationship between City and Consultant, then Consultant agrees to reimburse City for all costs, including accounting and attorney's fees, arising out of such audit and any appeals relating thereto.

Page 533 of 655 ends

3 Professional Services – Non Design
1450836.1
C. Consultant shall fully comply with Workers' Compensation laws regarding Consultant and Consultant's employees. Consultant further agrees to indemnify and hold City harmless from any failure of Consultant to comply with applicable Worker's Compensation laws.

D. Consultant shall, at Consultant’s sole cost and expense fully secure and comply with all federal, state and local governmental permit or licensing requirements, including but not limited to the City of Diamond Bar, South Coast Air Quality Management District, and California Air Resources Board.

E. In addition to any other remedies it may have, City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant's failure to promptly pay to City any reimbursement or indemnification required by this Agreement or for any amount or penalty levied against the City for Consultant’s failure to comply with this Section.

8. Standard of Performance. Consultant shall perform all work at the standard of care and skill ordinarily exercised by members of the profession under similar conditions and represents that it and any subcontractors it may engage, possess any and all licenses which are required to perform the work contemplated by this Agreement and shall maintain all appropriate licenses during the performance of the work.

9. Indemnification.

Consultant shall indemnify, defend with counsel approved by City, and hold harmless City, its officers, officials, employees and volunteers ("Indemnitees") from and against all liability, loss, damage, expense, cost (including without limitation reasonable attorneys' fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with:
(1) Any and all claims under Workers’ Compensation Act and other employee benefit acts with respect to Consultant’s employees or Consultant’s contractor’s employees arising out of Consultant’s work under this Agreement; and
(2) Any and all claims arising out of Consultant's performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement, regardless of City’s passive negligence, but excepting such loss or damage which is caused by the sole active negligence or willful misconduct of the City. Should City in its sole discretion find Consultant’s legal counsel unacceptable, then Consultant shall reimburse the City its costs of defense, including without limitation reasonable attorneys' fees, expert fees and all other costs and fees of litigation. The Consultant shall promptly pay any final judgment rendered against the Indemnitees. It is expressly understood and agreed that

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the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement. Except for the Indemnitees, this Agreement shall not be construed to extend to any third party indemnification rights of any kind. (3) The Consultant's obligations to indemnify, defend and hold harmless the City shall survive termination of this Agreement.

10. Insurance.

A. Consultant shall at all times during the term of this Agreement carry, maintain, and keep in full force and effect, with an insurance company authorized to do business in the State of California and approved by the City the following insurance:
(1) a policy or policies of broad-form comprehensive general liability insurance written on an occurrence basis with minimum limits of $1,000,000.00 combined single limit coverage against any injury, death, loss or damage as a result of wrongful or negligent acts by Consultant, its officers, employees, agents, and independent contractors in performance of services under this Agreement; (2) property damage insurance with a minimum limit of $500,000.00 per occurrence;
(3) automotive liability insurance written on an occurrence basis covering all owned, non-owned and hired automobiles, with minimum combined single limits coverage of $1,000,000.00; and
(4) Worker's Compensation insurance when required by law, with a minimum limit of $500,000.00 or the amount required by law, whichever is greater.

B. The City, its officers, employees, agents, and volunteers shall be named as additional insureds on the policies as to comprehensive general liability, property damage, and automotive liability. The policies as to comprehensive general liability, property damage, and automobile liability shall provide that they are primary, and that any insurance maintained by the City shall be excess insurance only.

C. All insurance policies shall provide that the insurance coverage shall not be non-renewed, canceled, reduced, or otherwise modified (except through the addition of additional insureds to the policy) by the insurance carrier without the insurance carrier giving City at least ten (10) days prior written notice thereof. Consultant agrees that it will not cancel, reduce or otherwise modify the insurance coverage and in the event of any of the same by the insurer to immediately notify the City.

D. All policies of insurance shall cover the obligations of Consultant pursuant to the terms of this Agreement and shall be issued by an insurance company which is

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authorized to do business in the State of California or which is approved in writing by the City; and shall be placed have a current A.M. Best's rating of no less than A-, VII.

E. Consultant shall submit to City (1) insurance certificates indicating compliance with the minimum insurance requirements above, and (2) insurance policy endorsements or a copy of the insurance policy evidencing the additional insured requirements in this Agreement, in a form acceptable to the City.

F. Self-Insured Retention/Deductibles. All policies required by this Agreement shall allow City, as additional insured, to satisfy the self-insured retention (“SIR”) and/or deductible of the policy in lieu of the Consultant (as the named insured) should Consultant fail to pay the SIR or deductible requirements. The amount of the SIR or deductible shall be subject to the approval of the City. Consultant understands and agrees that satisfaction of this requirement is an express condition precedent to the effectiveness of this Agreement. Failure by Consultant as primary insured to pay its SIR or deductible constitutes a material breach of this Agreement. Should City pay the SIR or deductible on Consultant’s due to such failure in order to secure defense and indemnification as an additional insured under the policy, City may include such amounts as damages in any action against Consultant for breach of this Agreement in addition to any other damages incurred by City due to the breach.

G. Subrogation. With respect to any Workers' Compensation Insurance or Employer's Liability Insurance, the insurer shall waive all rights of subrogation and contribution it may have against the Indemnitees.

H. Failure to Maintain Insurance. If Consultant fails to keep the insurance required under this Agreement in full force and effect, City may take out the necessary insurance and any premiums paid, plus 10% administrative overhead, shall be paid by Consultant, which amounts may be deducted from any payments due Consultant.

I. Consultant shall include all subcontractors, if any, as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor to the City for review and approval. All insurance for subcontractors shall be subject to all of the requirements stated herein.

11. Confidentiality. Consultant in the course of its duties may have access to confidential data of City, private individuals, or employees of the City. Consultant covenants that all data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without written authorization by City. City shall grant such authorization if disclosure is required by law. All City data shall be returned to City upon the termination of this Agreement. Consultant's covenant under this section shall survive the termination of this Agreement. Notwithstanding the foregoing, to the extent Consultant prepares reports of a proprietary nature specifically for and in connection with certain projects, the City shall not, except with Consultant's prior written consent, use the same for other unrelated projects.

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12. Ownership of Materials. Except as specifically provided in this Agreement, all materials provided by Consultant in the performance of this Agreement shall be and remain the property of City without restriction or limitation upon its use or dissemination by City. Consultant may, however, make and retain such copies of said documents and materials as Consultant may desire.

13. Maintenance and Inspection of Records. In accordance with generally accepted accounting principles, Consultant and its subcontractors shall maintain reasonably full and complete books, documents, papers, accounting records, and other information (collectively, the “records”) pertaining to the costs of and completion of services performed under this Agreement. The City and any of their authorized representatives shall have access to and the right to audit and reproduce any of Consultant's records regarding the services provided under this Agreement. Consultant shall maintain all such records for a period of at least three (3) years after termination or completion of this Agreement. Consultant agrees to make available all such records for inspection or audit at its offices during normal business hours and upon three (3) days' notice from the City, and copies thereof shall be furnished if requested.

14. Conflict of Interest.

A. Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the services to be performed by Consultant under this Agreement, or which would conflict in any manner with the performance of its services hereunder. Consultant further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, Consultant shall avoid the appearance of having any interest which would conflict in any manner with the performance of its services pursuant to this Agreement.

B. Consultant covenants not to give or receive any compensation, monetary or otherwise, to or from the ultimate vendor(s) of hardware or software to City as a result of the performance of this Agreement. Consultant's covenant under this section shall survive the termination of this Agreement.

15. Termination. The City may terminate this Agreement with or without cause upon fifteen (15) days' written notice to Consultant. The effective date of termination shall be upon the date specified in the notice of termination, or, in the event no date is specified, upon the fifteenth (15th) day following delivery of the notice. In the event of such termination, City agrees to pay Consultant for services satisfactorily rendered prior to the effective date of termination. Immediately upon receiving written notice of termination, Consultant shall discontinue performing services, unless the notice provides otherwise, except those services reasonably necessary to effectuate the termination. The City shall be not liable for any claim of lost profits.

16. Personnel/Designated Person. Consultant represents that it has, or will secure at its own expense, all personnel required to perform the services under this Agreement. All of the services required under this Agreement will be performed by

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Consultant or under it supervision, and all personnel engaged in the work shall be qualified to perform such services.

17. Non-Discrimination and Equal Employment Opportunity.

A. Consultant shall not discriminate as to race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition, or sexual orientation, in the performance of its services and duties pursuant to this Agreement, and will comply with all rules and regulations of City relating thereto.

Such nondiscrimination shall include but not be limited to the following: employment, upgrading, demotion, transfers, recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.

B. Consultant will, in all solicitations or advertisements for employees placed by or on behalf of Consultant state either that it is an equal opportunity employer or that all qualified applicants will receive consideration for employment without regard to race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition, or sexual orientation.

C. Consultant will cause the foregoing provisions to be inserted in all subcontracts for any work covered by this Agreement except contracts or subcontracts for standard commercial supplies or raw materials.

18. Time of Completion. Consultant agrees to commence the work provided for in this Agreement within (5) days of being notified by the City to proceed and to diligently prosecute completion of the work during the term.

19. Time Is of the Essence. Time is of the essence in this Agreement.

Consultant shall do all things necessary and incidental to the prosecution of Consultant's work.

20. RESERVED.

21. Delays and Extensions of Time. Consultant's sole remedy for delays outside its control shall be an extension of time. No matter what the cause of the delay, Consultant must document any delay and request an extension of time in writing at the time of the delay to the satisfaction of City. Any extensions granted shall be limited to the length of the delay outside Consultant’s control. If Consultant believes that delays caused by the City will cause it to incur additional costs, it must specify, in writing, why the delay has caused additional costs to be incurred and the exact amount of such cost within 10 days of the time the delay occurs. No additional costs can be paid that exceed the not to exceed amount absent a written amendment to this Agreement. In no event shall the Consultant be entitled to any claim for lost profits due to any delay, whether caused by the City or due to some other cause.

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22. Assignment. Consultant shall not assign or transfer any interest in this Agreement nor the performance of any of Consultant's obligations hereunder, without the prior written consent of City, and any attempt by Consultant to so assign this Agreement or any rights, duties, or obligations arising hereunder shall be void and of no effect.

23. Compliance with Laws. Consultant shall comply with all applicable laws, ordinances, codes and regulations of the federal, state, and local governments.

24. Non-Waiver of Terms, Rights and Remedies. Waiver by either party of any one or more of the conditions of performance under this Agreement shall not be a waiver of any other condition of performance under this Agreement. In no event shall the making by City of any payment to Consultant constitute or be construed as a waiver by City of any breach of covenant, or any default which may then exist on the part of Consultant, and the making of any such payment by City shall in no way impair or prejudice any right or remedy available to City with regard to such breach or default.

25. RESERVED.

26. Mediation. Any dispute or controversy arising under this Agreement, or in connection with any of the terms and conditions hereof, which cannot be resolved by the parties, may be referred by the parties hereto for mediation. A third party, neutral mediation service shall be selected, as agreed upon by the parties and the costs and expenses thereof shall be borne equally by the parties hereto. The parties agree to utilize their good faith efforts to resolve any such dispute or controversy so submitted to mediation. It is specifically understood and agreed by the parties hereto that mutual good faith efforts to resolve the same any dispute or controversy as provided herein, shall be a condition precedent to the institution of any action or proceeding, whether at law or in equity with respect to any such dispute or controversy.

27. Notices. Any notices, bills, invoices, or reports required by this Agreement shall be deemed received on (a) the day of delivery if delivered by hand during regular business hours or by facsimile before or during regular business hours; or (b) on the third business day following deposit in the United States mail, postage prepaid, to the addresses heretofore set forth in the Agreement, or to such other addresses as the parties may, from time to time, designate in writing pursuant to the provisions of this section.
“CONSULTANT” “CITY”
Prince Global Solutions, LLC City of Diamond Bar
P.O. Box 711572 21810 Copley Drive
Herndon, VA 20171 Diamond Bar, CA 91765-4178
Attn.: Kevin D. Jones Attn.: Dan Fox, City Manager
Phone: (202) 550-9800 Phone: (909) 839-7010
E-mail: [email protected] E-mail: [email protected]

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28. Governing Law. This Agreement shall be interpreted, construed and enforced in accordance with the laws of the State of California. The venue for any action brought under this Agreement shall be in Los Angeles County.

29. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be the original, and all of which together shall constitute one and the same instrument.

30. Entire Agreement. This Agreement, and any other documents incorporated herein by reference, represent the entire and integrated agreement between Consultant and City. This Agreement supersedes all prior oral or written negotiations, representations or agreements. This Agreement may not be amended, nor any provision or breach hereof waived, except in a writing signed by the parties which expressly refers to this Agreement. Amendments on behalf of the City will only be valid if signed by a person duly authorized to do so under the City's Purchasing Ordinance.

IN WITNESS of this Agreement, the parties have executed this Agreement as of the date first written above.
"Consultant" "City"
Prince Global Solutions, LLC CITY OF DIAMOND BAR
By: ______ By:

Printed Name: Dan Fox, City Manager
Title:

By: ATTEST:

Printed Name:

Title:

Kristina Santana, City Clerk
Approved as to form:

By:

Omar Sandoval, City Attorney
*NOTE:If Consultant is a corporation, the City requires the following signature(s):
-- (1) the Chairman of the Board, the President or a Vice-President, AND (2) the Secretary, the Chief Financial Officer, the Treasurer, an Assistant Secretary or an Assistant Treasurer. If only one corporate officer exists or one corporate officer holds more than one corporate office, please so indicate. OR

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-- The corporate officer named in a corporate resolution as authorized to enter into this Agreement. A copy of the corporate resolution, certified by the Secretary close in time to the execution of the Agreement, must be provided to the City.

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Agenda Item #: 6.24
Meeting Date: June 16, 2026

CITY COUNCIL AGENDA REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
SUBJECT: First Amendment to Maintenance Services Agreement with Weatherproofing Technologies, Inc. for Maintenance Services through June 30, 2029.

STRATEGIC GOAL: Safe, Sustainable and Healthy Community RECOMMENDATION:

Approve, and authorize the City Manager to sign, the First Amendment to the Maintenance Services Agreement with Weatherproofing Technologies, Inc., through June 30, 2029.

FINANCIAL IMPACT:

The annual not-to-exceed amount of the proposed First Amendment to the Original Agreement will be $24,000 per Fiscal Year. Sufficient funds are included in the Fiscal Year 2026/27 Operating Budget to cover the cost of such services. No CPI was requested for this fiscal year.

BACKGROUND:

Over the past years, Weatherproofing Technologies, Inc. performance has met the City’s expectations. This satisfactory performance is evident in the condition of the roofs throughout the City facilities and in the success of the City’s roofing capital improvement projects.

As part of the contract, Weatherproofing Technologies, Inc. has provided the City with annual roof inspections and repairs at all the City's facilities, 24/7 leak response service, plans and specifications, project inspection services, and warranty management.

ANALYSIS:

This First Amendment will continue the comprehensive and proactive roof maintenance program, along with excellent services provided by Weatherproofing Technologies, Inc.

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Agenda Item #: 6.24
Meeting Date: June 16, 2026
LEGAL REVIEW:

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

PREPARED BY:

Jason Williams, Maintenance Supervisor, Public Works
ATTACHMENTS:

1. Amendment to Maintenance Services Agreement Weatherproofing Technologies, Inc.

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Agenda Item #: 7.1
Meeting Date: June 16, 2026

CITY COUNCIL AGENDA REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
SUBJECT: Levying Assessments on Landscape Assessment District No. 38 for Fiscal Year 2026/27.

STRATEGIC GOAL: Responsible Stewardship of Public Resources RECOMMENDATION:

A. Receive presentation, open Public Hearing to receive testimony, close Public Hearing; and, B. Adopt Resolution No. 2026-25 to levy and collect assessments for Landscape Assessment District No. 38 for Fiscal Year 2026/27.

FINANCIAL IMPACT:

The District is projected to generate approximately $277,290. In addition, the City’s General Fund will contribute

9.53% to meet the required General Benefit. However, there will be a shortfall between the total revenue generated and the District's estimated expenditures, necessitating an additional contribution from the General Fund. Overall, the contribution from the General Fund is estimated at $88,378. Sufficient funding is included in the FY2026/27 Budget.

BACKGROUND:

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 7, 2026, the City Council adopted Resolution No. 2026-08, 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 assessment thereon for Fiscal Year 2026/27.

On May 19, 2026, the City Council adopted Resolution No. 2026-11, 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 June 16, 2026, regular meeting.

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Agenda Item #: 7.1
Meeting Date: June 16, 2026
ANALYSIS:

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 number of parcels within the District is 18,486 parcels. The amount assessed upon the lands within District Number 38 for Fiscal Year 2025/26 was $15.00 per parcel. The amount to be assessed for Fiscal Year 2026/27 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 operating 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:

Nicholas Delgado, Management Analyst, Public Works
ATTACHMENTS:

1. Resolution No. 2026-25

2. LAD No. 38 Final Engineer's Report

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RESOLUTION NO. 2026-25

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND

BAR APPROVING THE CONTINUATION OF THE LEVY AND

COLLECTION OF ASSESSMENTS FOR CITY OF DIAMOND BAR
LANDSCAPING ASSESSMENT DISTRICT NO. 38 FOR FISCAL YEAR
2026-27.

WHEREAS, by Resolution No. 2026-11, the City Council approved the Engineer’s Report (“Report”) of the Engineer of Work related to City of Diamond Bar Landscaping Assessment District No. 38 (“District”) prepared pursuant to Part 2 of Division 15 of the California Streets and Highways Code (§ 22500, et seq.), known as the Landscaping and Lighting Act of 1972 (“Act”), which described the improvements thereon, and gave notice of and fixed the time and place of the public hearing on the question of assessment thereon for fiscal year 2026-27. A diagram of the area encompassed by the District is attached hereto as Exhibit A; and
WHEREAS, the Report is on file with the City Clerk of the City of Diamond Bar; and
WHEREAS, said hearing was duly and properly noticed, commenced in the SCAQMD Auditorium located at 21865 Copley Drive, Diamond Bar, California on June 16, 2026, and was concluded prior to the adoption of this Resolution; and WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred.

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

Section 1. The Recitals of this Resolution are in all respects true and correct.

Section 2. The City Council hereby expressly overrules any and all protests filed objecting to the proposed improvements specified herein or the assessment levied, therefore.

Section 3. Based upon its review of the Report, and other reports and information, the City Council hereby finds that (i) the land within the District will be benefitted by the improvements specified in said Report, (ii) the District includes all of the lands so benefitted, and (iii) the net amount to be assessed upon the lands within the District for the fiscal year 2026-27 fiscal year, is apportioned by a formula and method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.

Section 4. The improvements specified in the Report are hereby ordered to be completed.

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Resolution No. 2026-25
2 Section 5. The assessment diagram contained in the Report and the assessment of $15.00 for each assessable lot located within said District are hereby adopted and confirmed and said assessment is hereby levied for the fiscal year 2026-27.

Section 6. The assessment is in compliance with the provisions of the Act, and the City Council has complied with all laws pertaining to the levy of an annual assessment pursuant to the Act. The assessment is levied for the purpose of paying the costs and expenses of the improvements described in the Report for fiscal year 2026-27.

Section 7. The City Council hereby certifies that the assessments to be placed on the 2026-27 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 Landscaping Assessment District No. 38.

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

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

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

PASSED, ADOPTED AND APPROVED this 16th day of June 2026.

CITY OF DIAMOND BAR
_______
Steve Tye, Mayor
[Signatures continued on the following page]

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Resolution No. 2026-25
3 ATTEST:

I, Kristina Santana, City Clerk of the City of Diamond Bar, do hereby certify that the foregoing Resolution was passed, approved and adopted at the regular meeting of the City Council of the City of Diamond Bar held on the 16th day of June 2026, by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAINED: COUNCIL MEMBERS:
_______
Kristina Santana, City Clerk

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Resolution No. 2026-25
4 Exhibit A

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Fiscal Year 2026/27 Engineer’s Report For:

Landscaping Assessment District No. 38
May 2026

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TABLE OF CONTENTS

1. Engineer’s Letter.............................................................................................................1

2. Introduction ...................................................................................................................2

2.1 Background..............................................................................................................2

2.2 Process for Annual Assessment ..............................................................................2

2.3 Legislative Context ..................................................................................................3

3. Plans and Specifications..................................................................................................6

4. Estimate of Costs............................................................................................................8

4.1 District Budget.........................................................................................................8

4.2 Balance to Levy........................................................................................................8

5. Method of Apportionment............................................................................................ 10

5.1 Special Benefit.......................................................................................................10

5.2 General Versus Special Benefit .............................................................................12

5.3 Quantification of General Benefit.........................................................................13

5.4 Method of Assessment..........................................................................................16

5.5 Annual Assessment Calculation ............................................................................16

5.6 Duration of Assessment ........................................................................................16

5.7 Appeals and Interpretation ...................................................................................17

6. Assessment Diagram..................................................................................................... 18

7. Assessment Roll............................................................................................................ 19

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City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 2

2. INTRODUCTION

2.1 Background
The City services and maintains perimeter and median landscaping, and other improvements (the “Improvements”) to various parts of the City. In order to fund the maintenance and operation (the “Services”) of these improvements, the District was formed in 1984 by the County of Los Angeles prior to the incorporation of the City of Diamond Bar. Upon incorporation in 1989, the City assumed jurisdiction over the District. This Engineer’s Report (the "Report") was prepared to establish the budget for the Improvements (as described below) that will be funded by the Fiscal Year 2026/27 assessments and other revenue, and to determine the general and special benefits received from the Improvements by property within the District and the method of assessment apportionment to lots and parcels. This Report and the assessments have been made pursuant to Part 2 of Division 15 of the California Streets and Highways Code, commonly known as the Landscape and Lighting Act of 1972, and Article XIII D.

2.2 Process for Annual Assessment
As required by the procedures specified in the Act, an Engineer’s Report must be prepared on an annual basis which contains a full and detailed description of the improvements, the boundaries of the assessment district, and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the assessment district.

The City Council must also annually adopt a Resolution of Intention which:
• Declares the intention of the City Council to levy and collect assessments within the assessment district for the fiscal year stated therein.
• Generally describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements.
• Refers to the assessment district by its distinctive designation and indicates the general location of the assessment district.
• Refers to the report of the engineer, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the assessment district and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the assessment district. • Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment.
• States whether the assessment is proposed to increase from the previous year.

If the assessments are to be levied in the same or lesser amounts than the maximum assessment allowed, the City Clerk shall give notice of the public hearing by causing the Resolution of Intention to be published.

Any interested person may, prior to the conclusion of the public hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. During the course or upon conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including changes in the

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City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 3 improvements, any zones within the assessment district, and the proposed diagram or the proposed assessment. If the assessment to be levied exceeds the maximum assessment allowed, the City must comply with the procedures specified in Article XIII D and Proposition 218.

The City Council, upon conclusion of the public hearing must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the report. If confirmed, the assessments would be submitted to the County Auditor Controller for inclusion on the property tax roll.

Beginning in 2025, NBS became the Assessment Engineer for the District. To maintain an accurate reference and legally defensible record of the District, pertinent language used in previous engineer’s reports has been retained herein and is cited with footnotes, as appropriate.

2.3 Legislative Context
In 1996, California Voters adopted Proposition 218, the “Right to Vote on Taxes Act” which added Articles XIII C and XIII D to the California Constitution. Article XIII D imposes certain substantive and procedural requirements on any agency that wishes to levy special assessments.

Article XIII D imposes four basic substantive requirements on assessments1:
• All parcels that will have a special benefit conferred upon them and upon which an assessment will be imposed must be identified;
• The general benefits must be distinguished from the special benefits conferred on the parcels; • The proportionate special benefit derived by each parcel must be determined in relationship to the entirety of the capital improvement, the maintenance and operation expenses of the public improvement, or the cost of the property related service being provided; and • The amount assessed to a parcel must not exceed the reasonable cost of the proportional special benefit conferred on that parcel and does not include any costs attributable to the general benefit.

Since the initial passage of Proposition 218, several court rulings have helped provide context and direction on the practical implementation procedures and requirements for levying assessments. Several of the key concepts from these rulings are summarized below.

GENERAL BENEFIT
Article XIII D requires an agency to separate the general benefits from the special benefits conferred because only special benefits are assessable.

The Court of Appeal in Golden Hills Neighborhood Assn., Inc. v. City of San Diego (2011)2clarified this concept by stating, “Separation and quantification of general and special benefits must be accomplished by apportioning the cost of a service or improvement between the two and assessing property owners only for the portion of the cost representing special benefits.” 1 California Constitution Article XIII D Section 4.
2 Golden Hill Neighborhood Assn. v. City of San Diego CA4/1, D062203 (Cal. Ct. App. 2013)

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City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 4 The Court of Appeal in Beutz v. County of Riverside (2010) (“Beutz”) 3 quoted from the Legislative Analyst’s
Office pamphlet titled “Understanding Proposition 218” which states an agency must, “estimate the amount of special benefit landowners would receive from the project or service, as well as the amount of ‘general benefit.’ This step is needed because Proposition 218 allows local government to recoup from assessments only the proportionate share of cost to provide the special benefit.” The Court in Beutz furthered this idea stating, “Separating the general from the special benefits of a public improvement project and estimating the quantity of each in relation to the other is essential if an assessment is to be limited to the special benefits.”
The Court of Appeal in Silicon Valley Taxpayers' Association Incorporated v. Santa Clara County Open Space Authority (2008) (“SVTA”)
4 clarified that general benefits are not restricted to benefits conferred only on persons and property outside the assessment district but can include benefits both conferred on real property located in the district or to the public at large. The “public at large” includes all members of the public, including those who live, work, and shop within the district, and not simply transient visitors.

BENEFIT-BASED NOT COST-BASED
In Bonander v. Town of Tiburon (2009) (“Tiburon”)
5 , the Court of Appeal clarified the idea that assessments must be apportioned based upon benefit rather than cost. The Court stated, “proportionate special benefit is the basis upon which a project’s total assessable costs are apportioned among parcels within an assessment district.”
The assessment on a particular property cannot be based on the relative cost of the improvements, but rather the special benefit conferred on such property. The Court in Tiburon also stated, “an assessment represents the entirety of the cost of the improvement or property-related service, less any amount attributable to general benefits (which may not be assessed), allocated to individual properties in proportion to the relative special benefit conferred on the property.”

PUBLIC PROPERTY
Section 4, Subdivision (a) of Article XIII D states, in part, “Parcels within a district that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit.” Historically there had been differing opinions about whether this requirement that publicly owned property should not be exempt actually meant those properties must be assessed.

The Court of Appeal in Manteca Unified School District v. Reclamation District No. 17 et al (2017)6clarified this issue by stating, “Section 4, Subdivision (a) of Article XIII D of the California Constitution unambiguously conditions any continuing benefit assessment exemption on a showing by clear and convincing evidence of no special benefit.”
3 Beutz v. County of Riverside, 109 Cal. Rptr. 3d 851 (Cal. Ct. App. 2010) 4 Silicon Valley Taxpayers' Association Incorporated v. Santa Clara County Open Space Authority, 44 Cal. 4th 431 (2008). 5 Bonander v. Town of Tiburon, 147 Cal. App. 4th 1116 (Cal. Ct. App. 2007) 6 Manteca Unified School District v. Reclamation District No. 17 et al, C077906 (Cal. Ct. App. 2017)

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City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 5

IMPRECISION
The Court in Tiburon acknowledged the difficulty of trying to precisely assign and measure special benefit, stating, “Any attempt to classify special benefits conferred on particular properties and to assign relative weights to those benefits will necessarily involve some degree of imprecision.” The Court in Tiburon went on to say that a formula assigning equal weight to different special benefits “may be a legally justifiable approach to measuring and apportioning special benefits, [but] it is not necessarily the only valid approach. Whichever approach is taken to measuring and apportioning special benefits, however, it must be both defensible and consistently applied.”

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City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 6

3. PLANS AND SPECIFICATIONS
The work and improvements proposed to be undertaken by the City and the cost thereof paid from the levy of the annual assessment provide special benefit to assessor parcels within the District defined in the Method of Assessment herein. Consistent with the Act, the improvements are generally described as follows:

MEDIANS
The landscaped islands to be maintained by the District are located as follows:
• Diamond Bar Blvd
• Grand Ave
• Golden Springs Dr – 57 freeway overcrossing to West City Limits • Golden Prados Dr – Golden Springs Dr to Hopi St
• Tin Dr – Great Bend 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 • 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

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City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 7

TURF AREAS
The landscaped turf areas to be maintained by the District are located as follows:
• Diamond Bar Blvd – at Gold Rush Dr
• Grand Ave (east side) – from south of Rolling Knoll Dr to driveway at the Diamond • Bar Center
Installation, maintenance, and servicing of Improvements, may include, but are not limited to, turf and play areas, landscaping, ground cover, shrubs and trees, irrigation systems, lighting, fencing, entry monuments, graffiti removal and repainting, labor, materials, supplies, utilities and equipment, as applicable, at each of the locations owned, operated or maintained by the District.

Installation - means the construction of Improvements, including, but not limited to, land preparation (such as grading, leveling, cutting and filling), sod, landscaping, irrigation systems, walkways, drainage, and lights.

Maintenance - means the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including repair, removal, or replacement of all or part of any improvement; providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; the removal of trimmings, rubbish, debris, and other solid waste; the cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti.

Servicing - means the furnishing of electric current, or energy, gas or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements, or water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other improvements.

Incidental expenses include all of the following: (a) The costs of preparation of the report, including plans, specifications, estimates, diagram, and assessment; (b) the costs of printing, advertising, and the giving of published, posted, and mailed notices; (c) compensation payable to the County for collection of assessments; (d) compensation of any engineer or attorney employed to render services in proceedings pursuant to this part; (e) any other expenses incidental to the construction, installation, or maintenance and servicing of the Improvements; (f) any expenses incidental to the issuance of bonds or notes pursuant to Streets & Highways Code Section 22662.5; and (g) costs associated with any elections held for the approval of a new or increased assessment (according to Streets & Highways Code §22526).

Modifications to the District structure could include, but are not limited to, substantial changes or expansion of the Improvements provided, substantial changes in the service provided, modifications or 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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City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 8

4. ESTIMATE OF COSTS

4.1 District Budget
Fiscal Year 2026/27 estimated costs of maintenance and servicing the Improvements as described in the Plans and Specifications of this Report are summarized below.

Description
Proposed
FY 2026/27 Costs
Salaries & Benefits (subsidized by General Fund) $57,746 Advertising 3,000
Utilities 102,800
Maintenance of Grounds/Buildings 30,000
Professional Services 7,500
Landscape Maintenance 150,000
Tree Maintenance 10,000
Total Estimated Expenditures $361,046
Contributions from Other Sources (1) (83,756)
Fiscal Year 2026/27 Net Amount to be Assessed (2) $277,290 (1) Includes City General Fund contribution.
(2) The net available funds, after incidental, administrative, financing, and other costs shall be expended exclusively for Improvements within the boundaries of the District or as described herein, and appropriate incidental and administrative costs as defined in the Plans and Specifications section.

A list containing the Fiscal Year 2026/27 assessment and number of parcels proposed to be assessed is included in Section 7 of this Report.

4.2 Balance to Levy
The following table shows the total costs, additional revenues and contributions, and the Balance to Levy for Fiscal Year 2026/27.

Description Amount
Salaries & Benefits $57,746
Operating Expenses & Services 303,300
Total District Costs $361,046
Contribution to (from) Operational Reserves 0
Other Revenue Sources (1) (83,756)
Balance to Levy $277,290
(1) Includes City General Fund contribution.

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City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 9 Total District Costs - Includes the personnel services, maintenance, and operations, capital (including capital replacement costs), indirect costs, and equipment.

Contribution to (from) Operational Reserves - The operational reserves item provides funds to operate the District from the time period of July 1 (beginning of the fiscal year) through January when the County provides the City with the first installment of assessments collected from the property tax bills. This eliminates the need for the City to transfer funds from non-District accounts to pay for District charges during the first half of the fiscal year. Negative amounts shown here are transfers that are used to reduce the Balance to Levy.

Other Revenue Sources - The amount of additional funds designated for use by the District that are not from District assessments. These funds are added to the District account to reduce assessments and may be from either non-District sources including City General Fund contributions or District sources including interest earnings.

Balance to Levy - The total amount to be levied and collected through assessments for the current fiscal year. The Balance to Levy represents the sum of the total direct and administration costs, reserves, contributions, and other revenue sources.

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City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 10

5. METHOD OF APPORTIONMENT
The following section includes an explanation of the benefits to be derived from the Improvements throughout the District, as well as a description of the assessment methodology used to apportion the total assessment to properties within the District.

The Fiscal Year 2024/25 Engineer’s Report was prepared by a different engineer of record and specific language from the Fiscal Year 2024/25 Engineer’s Report 7 has been referenced to describe the Method of Apportionment within the following section of this Report.

The District consists of all assessor parcels within the boundaries as defined by the Assessment Diagram included with this Report. Further, all assessor parcels, including all privately and publicly owned parcels, are identified by Assessor Parcel Numbers listed within the included assessment roll. The method used for apportioning the assessment is based on the proportional special benefits to be derived by the properties in the District over and above general benefits conferred on real property or to the public at large. The assessment is apportioned to the parcels in proportion to the relative special benefit from the Improvements.

The apportionment of special benefit is a two-step process: the first step is to identify the types of special benefit arising from the improvements, and the second step is to allocate the assessments to property based on the estimated relative special benefit for each type of property.

5.1 Special Benefit
The improvements are expected to confer certain special benefits to the parcels within the District.

Pursuant to the Prior Engineer’s Report, the special benefit conferred to parcels is more fully described as follows:

The following benefit categories summarize the types of special benefit to residential, commercial, industrial, and other lots and parcels resulting from the Improvements to be provided with the assessment proceeds. These types of special benefit are summarized as follows:

A. Proximity to Improved Landscaped Areas and Other Public Improvements within the District.

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.

The SVTA decision provides enhanced clarity to the definitions of special benefits from landscaping and parks to properties in three distinct areas: proximity, expanded or 7 Method of Apportionment and subsections as detailed in the Fiscal Year 2024/25 Engineer’s Report, City of Diamond Bar, Landscaping Assessment District No. 38, dated July 2024 and approved by City Council on June 18, 2024 (“Prior Engineer’s Report”).

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City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 11 improved access, and views. The SVTA decision also clarifies that a special benefit is a service or improvement that provides a direct advantage to a parcel and that indirect or derivative advantages resulting from the overall public benefits from a service or improvement are general benefits. The SVTA decision also provides specific guidance that setback landscaping is a direct advantage and special benefit to property that is proximate to a landscaped area that is improved by an assessment:

The characterization of a benefit may depend on whether the parcel receives a direct advantage from the improvement (e.g. proximity to a park) or receives an indirect, derivative advantage resulting from the overall public benefits of the improvement (e.g. general enhancement of the district’s property values).

Proximity, improved access and views, in addition to the other special benefits listed herein further strengthen the basis of these assessments. 8 Pursuant to the Prior Engineer’s Report, the primary special benefits on landscaping are as set forth below:

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

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

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

In addition, the following special benefits are identified in the Prior Engineer’s Report:

PROXIMITY TO IMPROVED LANDSCAPED AREAS WITHIN THE DISTRICT Only the specific properties within close proximity to the Improvements are included in the District. The District has been narrowly drawn to include the properties that receive special benefits from the Improvements. Therefore, property in the District enjoys unique and valuable proximity and access to the Improvements that the public at large and property outside the District do not share.

In absence of the assessments, the Improvements would not be provided, and the public improvements funded in the District would be degraded due to insufficient funding for maintenance, upkeep and repair.

Therefore, the assessments provide Improvements that are over and above what otherwise would be provided. Improvements that are over and above what otherwise would be provided do not by themselves translate into special benefits but when combined with the unique proximity and access enjoyed by parcels in the District, they provide a direct advantage and special benefit to property in the District.

ACCESS TO IMPROVED LANDSCAPED AREAS WITHIN THE DISTRICT Since the parcels in the District are nearly the only parcels that enjoy close access to the Improvements, they directly benefit from the unique close access to improved landscaping areas and other public improvements that are provided by the assessments.

This is a direct advantage and special benefit to property in the District. 8 Method of Apportionment and subsections as detailed in the Fiscal Year 2024/25 Engineer’s Report, City of Diamond Bar, Landscaping Assessment District No. 38, dated July 2024 and approved by City Council on June 18, 2024 (“Prior Engineer’s Report”).

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City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 12

IMPROVED VIEWS WITHIN THE DISTRICT
The City, by maintaining permanent public improvements funded by the assessments in the District, provides improved views to properties in the District. The properties in the District enjoy close and unique proximity, access and views of the specific Improvements funded in the District; therefore, the improved and protected views provided by the assessments are another direct and tangible advantage that is uniquely conferred upon property in the District.

EXTENSION OF A PROPERTY’S OUTDOOR AREAS AND GREEN SPACES FOR PROPERTIES WITHIN CLOSE

PROXIMITY TO THE IMPROVEMENTS
In large part because it is cost prohibitive to provide large open land areas on property in the District, the residential, commercial, and other benefiting properties in the District do not have large outdoor areas and green spaces. The Improvements within the District provide additional outdoor areas that serve as an effective extension of the land area for proximate properties because the Improvements are uniquely proximate and accessible to property in close proximity to the Improvements. The Improvements, therefore, provide an important, valuable and desirable extension of usable land area for the direct advantage and special benefit of properties in the District because such properties have uniquely good and close proximity to the Improvements.

5.2 General Versus Special Benefit
Article XIIIC of the California Constitution requires any local agency proposing to increase or impose a benefit assessment to “separate the general benefits from the special benefits conferred on a parcel.” The rationale for separating special and general benefits is to ensure that property owners subject to the benefit assessment are not paying for general benefits. An assessment can fund special benefits but cannot fund general benefits. Accordingly, a separate estimate of the special and general benefit is given in this section. In other words:

Total
Benefit =
General
Benefit +
Special
Benefit
There is no widely accepted or statutory formula for general benefit. General benefits are benefits from improvements or services that are not special in nature, are not “particular and distinct” and are not “over and above” benefits received by other properties. SVTA provides some clarification by indicating that general benefits provide “an indirect, derivative advantage” and are not necessarily proximate to the improvements.

In this Report, the general benefit is liberally estimated and described and then budgeted so that it is funded by sources other than the assessment.

The starting point for evaluating general and special benefits is the current, baseline level of service. The assessment will fund Improvements “over and above” this general, baseline level and the general benefits estimated in this section are over and above the baseline.

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City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 13 A formula to estimate the general benefit is listed below:

General
Benefit =
Benefit to Real
Property Outside
the District
+
Benefit to Real
Property Inside the
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 decision indicates that a special benefit is conferred to a property if it “receives a direct advantage from the improvement (e.g., proximity to a park).” In these assessments, as noted, properties in the District have close and unique proximity, views and access to the Improvements and uniquely improved desirability from the Improvements and other properties and the public at large do not receive significant benefits because they do not have proximity, access or views of the Improvements. Therefore, the overwhelming proportion of the benefits conferred to property is special and is only minimally received by property outside the Districts or the public at large.

5.3 Quantification of General Benefit
Although the analysis used to support these assessments concludes that the benefits are solely special, as described above, consideration is made for the suggestion that a portion of the benefits are general.

General benefits cannot be funded by these assessments – the funding must come from other sources.

In this section, the general benefit from landscaping and other types of Improvements is liberally estimated and described and then budgeted so that it is funded by sources other than the assessment.

BENEFIT TO PROPERTY OUTSIDE THE DISTRICT
Properties within the District receive almost all of the special benefits from the Improvements because properties in the District enjoy unique close proximity and access to the Improvements that is not enjoyed by other properties or the public at large.

However, certain properties within the proximity/access radius of the Improvements, but outside of the boundaries of the District, may receive some benefit from the Improvements. Since this benefit is conferred to properties outside the District boundaries, it contributes to the overall general benefit calculation and will not be funded by the assessments. The general benefit to property outside of the District is calculated with the parcel and data analysis.

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

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

Assumptions based on the status of parcels in the District at the time of the initial benefit calculation:

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City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 14 • 18 Parcels Outside the District
• 18,422 Parcels In the District
Calculation of General Benefit to Property Outside the District: 18 / (18 + 18,422) = 0.10%.

BENEFIT TO PROPERTY INSIDE THE DISTRICT THAT IS INDIRECT AND DERIVATIVE The “indirect and derivative” benefit to property within the District is particularly difficult to calculate. A solid argument can be presented that all benefit within the District is special, because the other Improvements are clearly “over and above” and “particular and distinct” when compared with the baseline level of service and the unique proximity, access and views of the other Improvements enjoyed by benefiting properties in the District.

Nevertheless, the SVTA decision indicates there may be general benefit “conferred on real property located in the district.” A measure of the general benefits to property within the assessment area is the percentage of land area within or directly abutting the District that is publicly owned and used for regional purposes such as major roads, rail lines, and other regional facilities because such properties used for regional purposes could provide indirect benefits to the public at large. Approximately 4.43% of the land area in the District is used for such regional purposes, so this is a measure of the general benefits to property within the District.

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

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

Of the four ways benefits are conferred (proximity, access, views, extension of a property’s green space, and creation of lots), the only benefit that is conferred by way of pass-by vehicle trips is views, which accounts for 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 nonresidents 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.

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City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 15

TOTAL GENERAL BENEFITS
Using a sum of these three measures of general benefit, approximately 9.53% of the benefits conferred by the Improvements may be general in nature and should be funded by sources other than the assessment.

Landscaping General Benefit Calculation
Outside the District 0.10%
Inside the District 4.43%
Public At Large 5.00%
Total General Benefit 9.53%
Although this analysis finds that 9.53% of the assessment may provide general benefits from the Improvements, it was determined a requirement for a minimum contribution from sources other than the assessments of 10%. This minimum contribution above the measure of general benefits will serve to provide additional coverage for any other general benefits.

CURRENT GENERAL BENEFIT CONTRIBUTION FROM THE CITY
This general benefit cannot be funded from the assessments; it must be funded from other sources such as the City’s General Fund or other non-District funds. These contributions can also be in the form of inlieu contributions to the installation and maintenance of the Improvements such as other City assets that support and protect the Improvements. The City will contribute both monetary and in-lieu resources to ensure that the general benefits conferred by the proposed Improvements are not funded by the District’s assessments.

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

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

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

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

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

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

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City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 16 The total General Benefit is liberally quantified at 10% which is entirely offset by the conservatively quantified total non-assessment contribution towards general benefit described above of 25%. Therefore, no additional General Benefit must be funded by the City.

5.4 Method of Assessment
The development of an assessment methodology requires apportioning benefit to determine the relative special benefit for each property. The precise language from the Prior Engineer’s Report is included below:

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

The primary benefits on landscaping are set forth below:

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

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

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

The existing land use information indicates that well over 90 percent of the parcels within the City are residences. Because the special benefits derived apply equally to all residents and parcels, it has been determined that all assessable parcels would receive the same net assessment.9

5.5 Annual Assessment Calculation
The assessment per parcel is $15. For Fiscal Year 2026/27 the amount of the Assessment for the District is not increased from prior years.

5.6 Duration of Assessment
The District was formed or annexed in previous years. It is proposed that the assessments be continued every year after their formation or annexation, so long as the public improvements need to be maintained and improved, and the City requires funding for the improvements in the District. As noted previously, the assessment can continue to be levied annually after the City Council approves an annually updated 9 Method of Apportionment and subsections as detailed in the Fiscal Year 2024/25 Engineer’s Report, City of Diamond Bar, Landscaping Assessment District No. 38, dated July 2024 and approved by City Council on June 18, 2024 (“Prior Engineer’s Report”).

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City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 17 Engineer’s Report, budget for the assessment, improvements to be provided, and other specifics of the assessment. In addition, the City Council must hold an annual public hearing to continue the assessment.

5.7 Appeals and Interpretation
Any property owner who feels that the assessment levied on the subject property is in error as a result of incorrect information being used to apply the foregoing method of assessment may file a written appeal with the City of Diamond Bar City Manager or his or her designee. Any such appeal is limited to correction of an assessment during the then-current Fiscal Year and applicable law. Upon the filing of any such appeal, the City Manager or his or her designee will promptly review the appeal and any information provided by the property owner. If the City Manager or his or her designee finds that the assessment should be modified, the appropriate changes shall be made to the Assessment Roll. If any such changes are approved after the Assessment Roll has been filed with the County for collection, the City Manager or his or her designee is authorized to refund to the property owner the amount of any approved reduction.

Any dispute over the decision of the City Manager or his or her designee shall be referred to the Diamond Bar City Council, and the decision of the City Council shall be final.

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City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 18

6. ASSESSMENT DIAGRAM
The boundary of the District is coterminous with the City limits. The parcels to be assessed in the District are shown on the Assessment Diagram, which is on file with the City Clerk of the City of Diamond Bar and includes all those properties included in the original formation of the District and subsequent annexations.

The following Assessment Diagram is for general location only and is not to be considered the official boundary map. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the County Assessor of the County of Los Angeles, at the time this Report was prepared, and are incorporated by reference herein and made part of this report.

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City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 19

7. ASSESSMENT ROLL
Assessor’s parcel identification, for each lot or parcel subject to the assessment, shall be based on the County Assessor’s secured roll data for the applicable year in which this report is prepared and is incorporated herein by reference.

A listing of assessor’s parcels subject to the assessments for Fiscal Year 2026/27, along with the assessment amounts, is on file in the office of the City Engineer and incorporated herein by reference.

Based on County Assessor’s secured roll data, current assessor’s parcels, including corrected and/or new assessor’s parcels, will be submitted and/or resubmitted to the County Auditor/Controller. The annual assessment amount to be levied and collected for the resubmitted parcel(s) shall be determined in accordance with the method of apportionment and assessment rate approved in this report. Therefore, if a single assessor’s parcel has a status change in development, other land use change, or subdivides into multiple assessor’s parcels, the charge amounts applied to each of the new assessor’s parcels shall be recalculated and applied according to the approved method outlined in the method of apportionment and assessment rate rather than a proportionate share of the original assessment amount.

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Agenda Item #: 7.2
Meeting Date: June 16, 2026

CITY COUNCIL AGENDA REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
SUBJECT: Levying Assessments on Landscape Assessment District No. 39-2022 for Fiscal Year 2026/27.

STRATEGIC GOAL: Responsible Stewardship of Public Resources RECOMMENDATION:

A. Receive presentation, open Public Hearing to receive testimony, close Public Hearing; and, B. Adopt Resolution No. 2026-26 to levy and collect assessments for Landscape Assessment District No. 39- 2022 for Fiscal Year 2026/27.

FINANCIAL IMPACT:

The District will generate an estimated amount of $708,703. Additionally, there will be 6.62% of that generated amount from the City’s General Fund contribution to fulfill the required General Benefit (estimated at $42,638), and a Carryover Fund Balance of $263,134. Sufficient Funding is included in the FY2026/27 Budget.

BACKGROUND:

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 7, 2026, the City Council adopted Resolution No. 2026-09, 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 assessment thereon for Fiscal Year 2026/27.

On May 19, 2026, the City Council adopted Resolution No. 2026-12, 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 June 16, 2026, regular meeting.

ANALYSIS:

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Agenda Item #: 7.2
Meeting Date: June 16, 2026
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 latest 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 the proposed assessments upon assessable lots and parcels of land within the District. Said estimated cost results in a proposed Single-Family Equivalent (“SFE”) assessment rate of $583.63 for Zone A, $569.04 for Zone B, and $539.86 for Zone C for Fiscal Year 2026/27. Said proposed assessments include an authorized annual increase equal to the change in the Los Angeles-Riverside-Orange County Consumer Price Index (“CPI”) per year without further vote or ballot proceeding. The annual CPI from December 2024 to December 2025 was 3.01%.

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:

Nicholas Delgado, Management Analyst, Public Works
ATTACHMENTS:

1. Resolution No. 2026-26

2. LAD No. 39-2022 Final Engineer's Report

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RESOLUTION NO. 2026-26

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND

BAR APPROVING THE CONTINUATION OF THE LEVY AND

COLLECTION OF ASSESSMENTS FOR CITY OF DIAMOND BAR
LANDSCAPING ASSESSMENT DISTRICT NO. 39-2022 FOR FISCAL
YEAR 2026-27.

WHEREAS, by Resolution No. 2026-12, the City Council approved the Engineer’s Report (“Report”) of the Engineer of Work related to City of Diamond Bar Landscaping Assessment District No. 39-2022 (“District”) prepared pursuant to Part 2 of Division 15 of the California Streets and Highways Code (§ 22500, et seq.), known as the Landscaping and Lighting Act of 1972 (“Act”), which described the improvements thereon, and gave notice of and fixed the time and place of the public hearing on the question of assessment thereon for fiscal year 2026-27. A diagram of the area encompassed by the District is attached hereto as Exhibit A; and
WHEREAS, the Report is on file with the City Clerk of the City of Diamond Bar; and
WHEREAS, said hearing was duly and properly noticed, commenced in the SCAQMD Auditorium located at 21865 Copley Drive, Diamond Bar, California, on June 16, 2026, and was concluded prior to the adoption of this Resolution; and WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred.

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

Section 1. The Recitals of this Resolution, are in all respects true and correct.

Section 2. The Council hereby expressly overrules any and all protests filed objecting to the proposed improvements specified herein or the assessment levied, therefore.

Section 3. Based upon its review of the Report, and other reports and information, the City Council hereby finds that (i) the land within the District will be benefitted by the improvements specified in the Report, (ii) the District includes all of the lands so benefitted, and (iii) the net amount to be assessed upon the lands within the District for the fiscal year 2026-27, is apportioned by a formula and method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.

Section 4. The improvements specified in the Report are hereby ordered to be completed.

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Resolution No. 2026-26
2 Section 5. The assessment diagram contained in the Report and the assessment rate of $583.63 per Single-Family Equivalent (“SFE”) (which equates to $583.63 for Zone A, $569.04 for Zone B, and $539.86 for Zone C) are hereby adopted and confirmed and said assessment is hereby levied for the fiscal year 2026-27.

Section 6. The assessment is in compliance with the provisions of the Act, and the City Council has complied with all laws pertaining to the levy of an annual assessment pursuant to the Act. The assessment is levied for the purpose of paying the costs and expenses of the improvements described in the Report for fiscal year 2026-27.

Section 7. The City Council hereby certifies that the assessments to be placed on the 2026-27 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 Landscaping 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, ADOPTED AND APPROVED this 16th day of June 2026.

CITY OF DIAMOND BAR
______
Steve Tye, Mayor
[Signatures continued on the following page]

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Resolution No. 2026-26
3 ATTEST:

I, Kristina Santana, City Clerk of the City of Diamond Bar, do hereby certify that the foregoing Resolution was passed, approved and adopted at the regular meeting of the City Council of the City of Diamond Bar held on the 16th day of June 2026, by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAINED: COUNCIL MEMBERS:

Kristina Santana, City Clerk

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Resolution No. 2026-26
4 Exhibit A

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Fiscal Year 2026/27 Engineer’s Report For:

Landscaping Assessment District No. 39-2022
May 2026

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TABLE OF CONTENTS

1. Engineer’s Letter.............................................................................................................1

2. Introduction ...................................................................................................................2

2.1 Background..............................................................................................................2

2.2 Process for Annual Assessment ..............................................................................2

2.3 Legislative Context ..................................................................................................3

3. Plans and Specifications..................................................................................................6

4. Estimate of Costs............................................................................................................8

4.1 District Budget.........................................................................................................8

4.2 Balance to Levy........................................................................................................9

5. Method of Apportionment............................................................................................ 10

5.1 Special Benefit.......................................................................................................10

5.2 General Versus Special Benefit .............................................................................13

5.3 Quantification of General Benefit.........................................................................13

5.4 Zones of Benefit ....................................................................................................15

5.5 Method of Assessment..........................................................................................18

5.6 Annual Assessment Calculation ............................................................................19

5.7 Cost of Living Inflator ............................................................................................20

5.8 Duration of Assessment ........................................................................................20

5.9 Appeals and Interpretation ...................................................................................20

6. Assessment Diagram..................................................................................................... 21

7. Assessment Roll............................................................................................................ 23

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City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 2

2. INTRODUCTION

2.1 Background
The City services and maintains mini-parks, slopes, and open space areas and other improvements (the “Improvements”) in the Diamond Bar Hills area of the City. In order to fund the maintenance and operation (the “Services”) of these improvements, the Landscaping Assessment District No. 39 was formed in 1985 by the County of Los Angeles prior to the incorporation of the City. Upon incorporation in 1989, the City assumed jurisdiction over the Landscaping Assessment District No. 39.

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 of the California Constitution).

Their intent was to replace the existing Landscaping Assessment 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 (the "Report") was prepared to establish the budget for the Improvements (as described below) that will be funded by the Fiscal Year 2026/27 assessments and other revenue, and to determine the general and special benefits received from the Improvements by property within the District and the method of assessment apportionment to lots and parcels. This Report and the assessments have been made pursuant to Part 2 of Division 15 of the California Streets and Highways Code, commonly known as the Act, and Article XIII D.

2.2 Process for Annual Assessment
As required by the procedures specified in the Act, an Engineer’s Report must be prepared on an annual basis which contains a full and detailed description of the improvements, the boundaries of the assessment district and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the assessment district.

The City Council must also annually adopt a resolution of intention which:
• Declares the intention of the City Council to levy and collect assessments within the assessment district for the fiscal year stated therein.
• Generally describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements.
• Refers to the assessment district by its distinctive designation and indicates the general location of the assessment district.
• Refers to the report of the engineer, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the assessment district and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the assessment district. • Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment.
• States whether the assessment is proposed to increase from the previous year.

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City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 3 If the assessments are to be levied in the same or lesser amounts than the maximum assessment allowed, the City Clerk shall give notice of the public hearing by causing the Resolution of Intention to be published.

Any interested person may, prior to the conclusion of the public hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. During the course or upon conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including changes in the improvements, any zones within the assessment district, and the proposed diagram or the proposed assessment. If the assessment to be levied exceeds the maximum assessment allowed, the City must comply with the procedures specified in Article XIII D and Proposition 218.

The City Council, upon conclusion of the public hearing must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the report. If confirmed, the assessments would be submitted to the County Auditor Controller for inclusion on the property tax roll.

Beginning in 2025, NBS became the Assessment Engineer for the District. To maintain an accurate reference and legally defensible record of the District, pertinent language used in previous engineer’s reports has been retained herein and is cited with footnotes, as appropriate.

2.3 Legislative Context
In 1996, California Voters adopted Proposition 218, the “Right to Vote on Taxes Act” which added Articles XIII C and XIII D to the California Constitution. Article XIII D imposes certain substantive and procedural requirements on any agency that wishes to levy special assessments.

Article XIII D imposes four basic substantive requirements on assessments1:
• All parcels that will have a special benefit conferred upon them and upon which an assessment will be imposed must be identified;
• The general benefits must be distinguished from the special benefits conferred on the parcels; • The proportionate special benefit derived by each parcel must be determined in relationship to the entirety of the capital improvement, the maintenance and operation expenses of the public improvement, or the cost of the property related service being provided; and • The amount assessed to a parcel must not exceed the reasonable cost of the proportional special benefit conferred on that parcel and does not include any costs attributable to the general benefit.

Since the initial passage of Proposition 218, several court rulings have helped provide context and direction on the practical implementation procedures and requirements for levying assessments. Several of the key concepts from these rulings are summarized below.
1 California Constitution Article XIII D Section 4.

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City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 4

GENERAL BENEFIT
Article XIII D requires an agency to separate the general benefits from the special benefits conferred because only special benefits are assessable.

The Court of Appeal in Golden Hills Neighborhood Assn., Inc. v. City of San Diego (2011)2clarified this concept by stating, “Separation and quantification of general and special benefits must be accomplished by apportioning the cost of a service or improvement between the two and assessing property owners only for the portion of the cost representing special benefits.” The Court of Appeal in Beutz v. County of Riverside (2010) (“Beutz”) 3 quoted from the Legislative Analyst’s
Office pamphlet titled “Understanding Proposition 218” which states an agency must, “estimate the amount of special benefit landowners would receive from the project or service, as well as the amount of ‘general benefit.’ This step is needed because Proposition 218 allows local government to recoup from assessments only the proportionate share of cost to provide the special benefit.” The Court in Beutz furthered this idea stating, “Separating the general from the special benefits of a public improvement project and estimating the quantity of each in relation to the other is essential if an assessment is to be limited to the special benefits.”
The Court of Appeal in Silicon Valley Taxpayers' Association Incorporated v. Santa Clara County Open Space Authority (2008) (“SVTA”)
4 clarified that general benefits are not restricted to benefits conferred only on persons and property outside the assessment district but can include benefits both conferred on real property located in the district or to the public at large. The “public at large” includes all members of the public, including those who live, work, and shop within the district, and not simply transient visitors.

BENEFIT-BASED NOT COST-BASED
In Bonander v. Town of Tiburon (2009) (“Tiburon”)
5 , the Court of Appeal clarified the idea that assessments must be apportioned based upon benefit rather than cost. The Court stated, “proportionate special benefit is the basis upon which a project’s total assessable costs are apportioned among parcels within an assessment district.”
The assessment on a particular property cannot be based on the relative cost of the improvements, but rather the special benefit conferred on such property. The Court in Tiburon also stated, “an assessment represents the entirety of the cost of the improvement or property-related service, less any amount attributable to general benefits (which may not be assessed), allocated to individual properties in proportion to the relative special benefit conferred on the property.”

PUBLIC PROPERTY
Section 4, Subdivision (a) of Article XIII D states, in part, “Parcels within a district that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive 2 Golden Hill Neighborhood Assn. v. City of San Diego CA4/1, D062203 (Cal. Ct. App. 2013) 3 Beutz v. County of Riverside, 109 Cal. Rptr. 3d 851 (Cal. Ct. App. 2010) 4 Silicon Valley Taxpayers' Association Incorporated v. Santa Clara County Open Space Authority, 44 Cal. 4th 431 (2008). 5 Bonander v. Town of Tiburon, 147 Cal. App. 4th 1116 (Cal. Ct. App. 2007)

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City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 5 no special benefit.” Historically there had been differing opinions about whether this requirement that publicly owned property should not be exempt actually meant those properties must be assessed.

The Court of Appeal in Manteca Unified School District v. Reclamation District No. 17 et al (2017)6clarified this issue by stating, “Section 4, Subdivision (a) of Article XIII D of the California Constitution unambiguously conditions any continuing benefit assessment exemption on a showing by clear and convincing evidence of no special benefit.”

IMPRECISION
The Court in Tiburon acknowledged the difficulty of trying to precisely assign and measure special benefit, stating, “Any attempt to classify special benefits conferred on particular properties and to assign relative weights to those benefits will necessarily involve some degree of imprecision.” The Court in Tiburon went on to say that a formula assigning equal weight to different special benefits “may be a legally justifiable approach to measuring and apportioning special benefits, [but] it is not necessarily the only valid approach. Whichever approach is taken to measuring and apportioning special benefits; however, it must be both defensible and consistently applied.” 6 Manteca Unified School District v. Reclamation District No. 17 et al, C077906 (Cal. Ct. App. 2017)

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City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 6

3. PLANS AND SPECIFICATIONS
The work and improvements proposed to be undertaken by the City and the cost thereof paid from the levy of the annual assessment provide special benefit to assessor parcels within the District defined in the Method of Assessment herein. Consistent with the Act, the improvements are generally described as follows:

The City maintains landscaping and other improvements in locations within the District’s boundaries. The work and improvements to be undertaken by the District, and the cost thereof paid from the levy of the annual assessment provide special benefit to parcels within the District as defined in the Method of Assessment herein. In addition to the definitions provided by the Act, the work and improvements are generally described as mini-parks, slopes, and open space areas within the District. The Assessment Diagram shows the location and extent of the Improvements to be installed, maintained or serviced by the proceeds from the assessment.

Installation, maintenance and servicing of Improvements, may include, but are not limited to, turf and play areas, landscaping, ground cover, shrubs and trees, irrigation systems, sidewalks, parking lots, lighting, fencing, entry monuments, basketball courts, tennis courts, other recreational facilities, graffiti removal and repainting, labor, materials, supplies, utilities and equipment, as applicable, at each of the locations owned, operated or maintained by the District.

Installation - means the construction of Improvements, including, but not limited to, land preparation (such as grading, leveling, cutting and filling), sod, landscaping, irrigation systems, walkways, drainage and lights, playground equipment, play courts, playing fields, recreational facilities and public restrooms.

Maintenance - means the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including repair, removal, or replacement of all or part of any improvement; providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; the removal of trimmings, rubbish, debris, and other solid waste; the cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti.

Servicing - means the furnishing of electric current, or energy, gas, or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements, or water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other improvements.

Incidental expenses include all of the following: (a) The costs of preparation of the report, including plans, specifications, estimates, diagram, and assessment; (b) the costs of printing, advertising, and the giving of published, posted, and mailed notices; (c) compensation payable to the County for collection of assessments; (d) compensation of any engineer or attorney employed to render services in proceedings pursuant to this part; (e) any other expenses incidental to the construction, installation, or maintenance and servicing of the Improvements; (f) any expenses incidental to the issuance of bonds or notes pursuant to Streets & Highways Code Section 22662.5; and (g) costs associated with any elections held for the approval of a new or increased assessment (according to Streets & Highways Code §22526).

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City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 7 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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City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 8

4. ESTIMATE OF COSTS

4.1 District Budget
Fiscal Year 2026/27 estimated costs of maintenance and servicing the Improvements as described in the Plans and Specifications of this Report are summarized below.

Description
Proposed
FY 2026/27 Costs
Salaries & Benefits $41,579
Advertising 3,500
Utilities 137,000
Maintenance of Grounds/Buildings 35,000
Professional Services 5,000
Trail & Landscape Maintenance 330,000
Tree Maintenance 32,000
Weed/Pest Abatement 60,000
Additional Enhancement & Improvement 0
Total Estimated Expenditures $644,079
Contingencies/Reserves 370,076
Contributions from Other Sources (1) (305,452)
Fiscal Year 2026/27 Net Amount to be Assessed (2) $708,703 (1) Includes City General Fund contribution and fund balance carryover. (2) The net available funds, after incidental, administrative, financing and other costs shall be expended exclusively for Improvements within the boundaries of the District or as described herein, and appropriate incidental and administrative costs as defined in the Plans and Specifications section.

A list containing the Fiscal Year 2026/27 assessment and number of parcels proposed to be assessed is included in Section 7 of this Report.

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City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 9

4.2 Balance to Levy
The following table shows the total costs, additional revenues and contributions, and the balance to levy for Fiscal Year 2026/27.

Description Amount
Salaries & Benefits $41,579
Operating Expenses & Services 602,500
Enhancements / Improvements / Reserves 370,076
Total District Costs $1,014,155
Contribution to (from) Operational Reserves (262,814)
Other Revenue Sources (1) (42,638)
Balance to Levy $708,703
(1) Includes City General Fund contribution.

Total District Costs - Includes the personnel services, maintenance, and operations, capital (including capital replacement costs), indirect costs, and equipment.

Contribution to (from) Operational Reserves - The operational reserves item provides funds to operate the District from the time period of July 1 (beginning of the fiscal year) through January when the County provides the City with the first installment of assessments collected from the property tax bills. This eliminates the need for the City to transfer funds from non-District accounts to pay for District charges during the first half of the fiscal year. Negative amounts shown here are transfers that are used to reduce the Balance to Levy.

Other Revenue Sources - The amount of additional funds designated for use by the District that are not from District assessments. These funds are added to the District account to reduce assessments and may be from either non-District sources including City General Fund contributions, fund balance carryover, or District sources including interest earnings.

Balance to Levy - The total amount to be levied and collected through assessments for the current fiscal year. The Balance to Levy represents the sum of the total direct and administration costs, reserves, contributions, and other revenue sources.

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City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 10

5. METHOD OF APPORTIONMENT
The following section includes an explanation of the benefits to be derived from the Improvements throughout the District, as well as a description of the assessment methodology used to apportion the total assessment to properties within the District.

The Fiscal Year 2024/25 Engineer’s Report was prepared by a different engineer of record and specific language from the Fiscal Year 2024/25 Engineer’s Report 7 has been referenced to describe the Method of Apportionment within the following section of this Report.

The District consists of all assessor parcels within the boundaries as defined by the Assessment Diagram included with this Report. Further, all assessor parcels, including all privately and publicly owned parcels, are identified by Assessor Parcel Numbers listed within the included assessment roll. The method used for apportioning the assessment is based on the proportional special benefits to be derived by the properties in the District over and above general benefits conferred on real property or to the public at large. The assessment is apportioned to the parcels in proportion to the relative special benefit from the Improvements.

The apportionment of special benefit is a two-step process: the first step is to identify the types of special benefit arising from the improvements, and the second step is to allocate the assessments to property based on the estimated relative special benefit for each type of property.

5.1 Special Benefit
The improvements are expected to confer certain special benefits to the parcels within the District.

Pursuant to the Prior Engineer’s Report, the special benefit conferred to parcels is more fully described as follows:

The following benefit categories summarize the types of special benefit to residential, commercial, industrial, and other lots and parcels resulting from the Improvements to be provided with the assessment proceeds. These types of special benefit are summarized as follows:

A. Proximity 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.
7 Method of Apportionment and subsections as detailed in the Fiscal Year 2024/25 Engineer’s Report, City of Diamond Bar, Landscaping Assessment District No. 39-2022, dated July 2024 and approved by City Council on June 18, 2024 (“Prior Engineer’s Report”).

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City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 11 The SVTA decision provides enhanced clarity to the definitions of special benefits from landscaping and parks to properties in three distinct areas: proximity, expanded or improved access, and views. The SVTA decision also clarifies that a special benefit is a service or improvement that provides a direct advantage to a parcel and that indirect or derivative advantages resulting from the overall public benefits from a service or improvement are general benefits. The SVTA decision also provides specific guidance that setback landscaping is a direct advantage and special benefit to property that is proximate to a landscaped area that is improved by an assessment:

The characterization of a benefit may depend on whether the parcel receives a direct advantage from the improvement (e.g. proximity to a park) or receives an indirect, derivative advantage resulting from the overall public benefits of the improvement (e.g. general enhancement of the district’s property values).

Proximity, improved access and views, in addition to the other special benefits listed herein further strengthen the basis of these assessments. 8 In addition, the following special benefits are identified in the Prior Engineer’s Report:

PROXIMITY TO IMPROVED LANDSCAPED AREAS WITHIN THE DISTRICT Only the specific properties within close proximity to the Improvements are included in the District. The District has been narrowly drawn to include the properties that receive special benefits from the Improvements. Therefore, property in the District enjoys unique and valuable proximity and access to the Improvements that the public at large and property outside the District do not share.

In absence of the assessments, the Improvements would not be provided, and the public improvements funded in the District would be degraded due to insufficient funding for maintenance, upkeep and repair.

Therefore, the assessments provide Improvements that are over and above what otherwise would be provided. Improvements that are over and above what otherwise would be provided do not by themselves translate into special benefits but when combined with the unique proximity and access enjoyed by parcels in the District, they provide a direct advantage and special benefit to property in the District.

IMPROVED VIEWS WITHIN THE DISTRICT
The City, by maintaining permanent public improvements funded by the assessments in the District, provides improved views to properties in the District. The properties in the District enjoy close and unique proximity, access and views of the specific Improvements funded in the District; therefore, the improved and protected views provided by the assessments are another direct and tangible advantage that is uniquely conferred upon property in the District.

EXTENSION OF A PROPERTY’S OUTDOOR AREAS AND GREEN SPACES FOR PROPERTIES WITHIN CLOSE

PROXIMITY TO THE IMPROVEMENTS
In large part because it is cost prohibitive to provide large open land areas on property in the District, the residential, commercial and other benefiting properties in the District do not have large outdoor areas 8 Method of Apportionment and subsections as detailed in the Fiscal Year 2024/25 Engineer’s Report, City of Diamond Bar, Landscaping Assessment District No. 38, dated July 2024 and approved by City Council on June 18, 2024 (“Prior Engineer’s Report”).

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City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 12 and green spaces. The Improvements within the District provide additional outdoor areas that serve as an effective extension of the land area for proximate properties because the Improvements are uniquely proximate and accessible to property in close proximity to the Improvements. The Improvements, therefore, provide an important, valuable and desirable extension of usable land area for the direct advantage and special benefit of properties in the District because such properties have uniquely good and close proximity to the Improvements.

SAFETY AND SECURITY WITHIN THE DISTRICT
The City, through proper installation, maintenance, and servicing of public and private improvements funded by the assessments in the District, provides increased security and safety by preventing crime and suppressing fire. For parks and recreation improvements, proper lighting and well-kept landscapes help to deter crime and vandalism. Other landscaped area activities such as slope maintenance and brush clearing provide critical fire suppression.

CREATION OF INDIVIDUAL LOTS FOR RESIDENTIAL USE THAT, IN ABSENCE OF THE ASSESSMENTS, WOULD

NOT HAVE BEEN CREATED
In the District, the original owner/developer(s) of the property within the District agreed unanimously to the assessments. The assessments provide the necessary funding for improvements that were required as a condition of development and subdivision approval. Therefore, such assessments allowed the original property to be subdivided and for development of the parcels to occur. As parcels were sold, new owners were informed of the assessments through the title reports, and in some cases, through Department of Real Estate “White Paper” reports that the parcels were subject to assessment. Purchase of property was also an “agreement” to pay the assessment.

Therefore, in absence of the assessments, the lots within most of the District would not have been created. These parcels, and the improvements that were constructed on the parcels, receive direct advantage and special benefit from the assessments.

SUMMARY OF RELATIVE WEIGHT OF BENEFIT FACTORS
A solid argument could be made that the creation of individual lots benefit comprises 100% of the benefit because the Improvements were incorporated into the original planning and design of the subdivision, and thus were deemed to be necessary and required for the development of the lot. Without those Improvements and associated benefit, the lots would not have been created. Nevertheless, four other definitive benefits accruing to the parcels within the District are identified, and an allowance should be made within the overall relative importance of benefits. The relative benefit level of the five identified benefits used in this Report is shown below.

Benefit Category Relative Weight
Proximity & Access 10%
Views 10%
Outdoor Area Extension 10%
Safety & Security 10%
Creation of Lots 60%
Total Benefit 100%

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City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 13

5.2 General Versus Special Benefit
Article XIIIC of the California Constitution requires any local agency proposing to increase or impose a benefit assessment to “separate the general benefits from the special benefits conferred on a parcel.” The rationale for separating special and general benefits is to ensure that property owners subject to the benefit assessment are not paying for general benefits. An assessment can fund special benefits but cannot fund general benefits. Accordingly, a separate estimate of the special and general benefit is given in this section. In other words:

Total
Benefit =
General
Benefit +
Special
Benefit
There is no widely accepted or statutory formula for general benefit. General benefits are benefits from improvements or services that are not special in nature, are not “particular and distinct” and are not “over and above” benefits received by other properties. SVTA provides some clarification by indicating that general benefits provide “an indirect, derivative advantage” and are not necessarily proximate to the improvements.

In this Report, the general benefit is liberally estimated and described and then budgeted so that it is funded by sources other than the assessment.

The starting point for evaluating general and special benefits is the current, baseline level of service. The assessment will fund Improvements “over and above” this general, baseline level and the general benefits estimated in this section are over and above the baseline.

A formula to estimate the general benefit is listed below:

General
Benefit =
Benefit to Real
Property Outside
the District
+
Benefit to Real
Property Inside the
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 decision indicates that a special benefit is conferred to a property if it “receives a direct advantage from the improvement (e.g., proximity to a park).” In these assessments, as noted, properties in the District have close and unique proximity, views and access to the Improvements and uniquely improved desirability from the Improvements and other properties and the public at large do not receive significant benefits because they do not have proximity, access or views of the Improvements. Therefore, the overwhelming proportion of the benefits conferred to property is special and is only minimally received by property outside the Districts or the public at large.

5.3 Quantification of General Benefit
Although the analysis used to support these assessments concludes that the benefits are solely special, as described above, consideration is made for the suggestion that a portion of the benefits are general.

General benefits cannot be funded by these assessments – the funding must come from other sources.

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City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 14 In this section, the general benefit from the Improvements is liberally estimated and described using the precise language from the Prior Engineer’s Report in the sections below.

BENEFIT TO PROPERTY OUTSIDE THE DISTRICT
Properties within the District receive almost all of the special benefits from the Improvements because properties in the District enjoy unique close proximity and access to the Improvements that is not enjoyed by other properties or the public at large.

However, certain properties within the proximity/access radius of the Improvements, but outside of the boundaries of the District, may receive some benefit from the Improvements. Since this benefit is conferred to properties outside the District boundaries, it contributes to the overall general benefit calculation and will not be funded by the assessments. The general benefit to property outside of the District is calculated with the parcel and data analysis.

Since certain properties outside the District enjoy close proximity and access to the Improvements cannot be assessed by the District, this is a form of general benefit to other property. There are 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.

Assumptions:
• 87 Parcels Outside the District
• 1,246 Parcels In the District
• 40% Benefit Factor
Calculation of General Benefit to Property Outside the District: 87 / (87 + 1,246) x 40% = 2.61%.

BENEFIT TO PROPERTY INSIDE THE DISTRICT THAT IS INDIRECT AND DERIVATIVE The “indirect and derivative” benefit to property within the District is particularly difficult to calculate. A solid argument can be presented that all benefit within the District is special, because the other Improvements are clearly “over and above” and “particular and distinct” when compared with the baseline level of service and the unique proximity, access and views of the other Improvements enjoyed by benefiting properties in the District.

Nevertheless, the SVTA decision indicates there may be general benefit “conferred on real property located in the district.” A measure of the general benefits to property within the assessment area is the percentage of land area within or directly abutting the District that is publicly owned and used for regional purposes such as major roads, rail lines and other regional facilities because such properties used for regional purposes could provide indirect benefits to the public at large. Approximately 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.

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City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 15

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, (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, 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.

Landscaping General Benefit Calculation
Outside the District 2.61%
Inside the District 1.51%
Public At Large 2.50%
Total General Benefit 6.62%

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 inlieu contributions to the installation and maintenance of the Improvements such as other City assets that support and protect the Improvements. The City will contribute both monetary and in-lieu resources to ensure that the general benefits conferred by the proposed Improvements are not funded by the assessments.

5.4 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 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.

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City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 16 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.

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.

Benefit Category Weight Zone A Zone B Zone C
Factor Benefit Factor Benefit Factor Benefit
Proximity & Access 10% 100% 10% 75% 7.5% 75% 7.5%
Views 10% 100% 10% 100% 10% 75% 7.5%
Outdoor Area Extension 10% 100% 10% 100% 10% 75% 7.5%
Safety & Security 10% 100% 10% 100% 10% 100% 10%
Creation of Lots 60% 100% 60% 100% 60% 100% 60%
Relative Benefit 100% 100% 97.5% 92.5%

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City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 17 A general map of the location of the Zones is shown below.

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City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 18

5.5 Method of Assessment
The development of an assessment methodology requires apportioning benefit to determine the relative special benefit for each property. The precise language from the Prior Engineer’s Report is included below:

The allocation of special benefits to property is partially based on the type of property and the size of property. These benefits can also partially be measured by the occupants on property in the District because such parcel population density is a measure of the relative benefit a parcel receives from the Improvements. It should be noted that many other types of “traditional” assessments also use parcel population densities to apportion the assessments. For example, the assessments for sewer systems, roads and water systems are typically allocated based on the population density of the parcels assessed. Therefore, the apportionment of benefit is reasonably based on the type of parcel, the size of parcels and the population density of parcels.

The next step in apportioning assessments is to determine the relative special benefit for each property. This process involves determining the relative benefit received by each property in relation to a single-family home, or, in other words, on the basis of Single Family Equivalents (“SFE”). This SFE methodology is commonly used to distribute assessments in proportion to estimated special benefit and is generally recognized as providing the basis for a fair and appropriate distribution of assessments. For the purposes of this Report, all properties are assigned an SFE value, which is each property’s relative benefit in relation to a single-family home on one parcel. In this case, the "benchmark" property is the single-family detached dwelling which is one Single Family Equivalent or one SFE.
9 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.

The benefit to undeveloped properties is determined to be proportional to the corresponding benefits for similar type developed properties, but at a lower rate due to the lack of improvements on the property. A measure of the benefits accruing to the underlying land is the average value of land in relation to Improvements for developed property. An analysis of the assessed valuation data from the City found 9 Method of Apportionment and subsections as detailed in the Fiscal Year 2024/25 Engineer’s Report, City of Diamond Bar, Landscaping Assessment District No. 38-2022, dated July 2024 and approved by City Council on June 18, 2024 (“Prior Engineer’s Report”).

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City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 19 that approximately 45% of the assessed value of improved properties is classified as the land value. It is reasonable to assume, therefore, that approximately 45% of the benefits are related to the underlying land and 55% are related to the improvements and the day-to-day use of the property. Using this ratio, the SFE factor for vacant/undeveloped parcels is 0.45 per parcel.

OTHER PROPERTY TYPES
Notwithstanding the foregoing discussion, there are four other types of property uses to be considered:

School 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.

Water Utility: The Walnut Valley Water District owns a parcel with two water tanks used to supply water for domestic use and fire protection. This property has no people stationed on-site and derives no benefit in any category. Therefore, it is not assessed.

Open Space: The open space parcels that lie within the District are part of the Improvements (views, safety and security, etc.) Therefore, these parcels are not assessed.

5.6 Annual Assessment Calculation
The table below shows the calculation of the estimated number of SFEs for each Zone for Fiscal Year 2026/27.

Zone Parcel Count SFE Factor SFEs
A 176 100% 176.000
B 971 97.5% 946.725
C 99 92.5% 91.575
Total 1,246 1,214.300
The following table shows the calculation of the assessment rate.

Description Fiscal Year 2026/27 Amount
Balance to Levy (1) $708,703.00
Total SFEs 1,214.300
Assessment rate per SFE $583.63
(1) Does not include rounding.

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City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 20 The assessment rate per Zone is shown below.

Zone
Fiscal Year 2026/27
Assessment Rate
A $583.63
B 569.04
C 539.86

5.7 Cost of Living Inflator
The assessment shall be subject to an adjustment tied to the Consumer Price Index-U for the Los AngelesRiverside-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.

In January 2018, the Bureau of Labor Statistics (“BLS”) updated their geographic areas for computing CPI.

Previously, the Los Angeles-Riverside-Orange County index was made up of Los Angeles, Orange, Riverside, San Bernardino, and Ventura counties. The BLS divided this index into two areas; one that represents Los Angeles and Orange counties (Los Angeles-Long Beach-Anaheim) and another that represents Riverside and San Bernardino counties (Riverside-San Bernardino-Ontario).

The annual resolution approving this Report specifies that the CPI to be used for the calculation of the maximum assessments is the Los Angeles-Long Beach-Anaheim Index. The annual CPI from December 2024 to December 2025 was 3.01%.

5.8 Duration of Assessment
It is proposed that the assessments be continued every year after their formation, so long as the public improvements need to be maintained and improved, and the City requires funding for the Improvements in the District. As noted previously, the assessment can continue to be levied annually after the City Council approves an annually updated Engineer’s Report, budget for the assessment, improvements to be provided, and other specifics of the assessment. In addition, the City Council must hold an annual public hearing to continue the assessment.

5.9 Appeals and Interpretation
Any property owner who feels that the assessment levied on the subject property is in error, as a result of incorrect information being used to apply the foregoing method of assessment, may file a written appeal with the City Manager or his or her designee. Any such appeal is limited to correction of an assessment during the then-current Fiscal Year and applicable law. Upon filing of any such appeal, the City Manager or his or her designee will promptly review the appeal and any information provided by the property owner.

If the City Manager or his or her designee finds that the assessment should be modified, the appropriate changes shall be made to the Assessment Roll. If any such changes are approved after the Assessment Roll has been filed with the County for collection, the City Manager or his or her designee is authorized to refund to the property owner the amount of any approved reduction. Any dispute over the decision of the City Manager or his or her designee shall be referred to the City Council, and the decision of the City Council shall be final.

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City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 21

6. ASSESSMENT DIAGRAM
The parcels to be assessed in the District are shown on the Assessment Diagram, which is on file with the City Clerk of the City and includes all those properties included in the original formation of the District and subsequent annexations. The following Assessment Diagram is for general location only and is not to be considered the official boundary map. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the County Assessor of the County of Los Angeles, at the time this Report was prepared, and are incorporated by reference herein and made part of this Report.

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City of Diamond Bar
Landscaping Assessment District No. 39-2022- Fiscal Year 2026/27 Engineer’s Report 22

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City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 23

7. ASSESSMENT ROLL
Assessor’s parcel identification, for each lot or parcel subject to the assessment, shall be based on the County Assessor’s secured roll data for the applicable year in which this Report is prepared and is incorporated herein by reference.

A listing of assessor’s parcels subject to the assessments for Fiscal Year 2026/27, along with the assessment amounts, is on file in the office of the City Engineer and incorporated herein by reference.

Based on County Assessor’s secured roll data, current assessor’s parcels, including corrected and/or new assessor’s parcels, will be submitted and/or resubmitted to the County Auditor/Controller. The annual assessment amount to be levied and collected for the resubmitted parcel(s) shall be determined in accordance with the method of apportionment and assessment rate approved in this report. Therefore, if a single assessor’s parcel has a status change in development, other land use change, or subdivides into multiple assessor’s parcels, the charge amounts applied to each of the new assessor’s parcels shall be recalculated and applied according to the approved method outlined in the method of apportionment and assessment rate rather than a proportionate share of the original assessment amount.

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Agenda Item #: 7.3
Meeting Date: June 16, 2026

CITY COUNCIL AGENDA REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
SUBJECT: Levying Assessments on Landscape Assessment District No. 41-2021 for Fiscal Year 2026/27.

STRATEGIC GOAL: Responsible Stewardship of Public Resources RECOMMENDATION:

A. Receive presentation, open Public Hearing to receive testimony, close Public Hearing; and, B. Adopt Resolution No. 2026-27 to levy and collect assessments for Landscape Assessment District No. 41- 2021 for Fiscal Year 2025/26.

FINANCIAL IMPACT:

The District will generate an estimated amount of $330,305. Additionally, there will be 3.84% of that generated amount from the City’s General Fund contribution to fulfill the required General Benefit (estimated at $17,453), and a Carryover Fund Balance of $181,367. Sufficient Funding is available in the Adopted FY 2026/27 Budget.

BACKGROUND:

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 7, 2026, the City Council adopted Resolution No. 2026-10, ordering the City Engineer to prepare and file an Engineer's Report related to maintenance of improvements in Landscaping Assessment District No. 41- 2021 (District) and any assessment thereon for Fiscal Year 2026/27.

On May 19, 2026, the City Council adopted Resolution No. 2025-13, 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, 2026, regular meeting.

ANALYSIS:

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Agenda Item #: 7.3
Meeting Date: June 16, 2026
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 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 2026/27. The proposed assessment amounts for the single-family and multi-family parcels are $608.88 and $560.17, respectively, an increase of 3% from Fiscal Year 2025/26.

LEGAL REVIEW:

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

PREPARED BY:

Nicholas Delgado, Management Analyst, Public Works
ATTACHMENTS:

1. Resolution No. 2026-27

2. LAD No. 41-2021 Final Engineer's Report

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RESOLUTION NO. 2026-27

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND

BAR APPROVING THE CONTINUATION OF THE LEVY AND

COLLECTION OF ASSESSMENTS FOR CITY OF DIAMOND BAR
LANDSCAPING ASSESSMENT DISTRICT NO. 41-2021 FOR FISCAL
YEAR 2026-27.

WHEREAS, by Resolution No. 2026-13, the City Council approved the Engineer’s Report (“Report”) of the Engineer of Work related to City of Diamond Bar Landscaping Assessment District No. 41-2021 (“District”) prepared pursuant to Part 2 of Division 15 of the California Streets and Highways Code (§ 22500, et seq.), known as the Landscaping and Lighting Act of 1972 (“Act”), which described the improvements thereon, and gave notice of and fixed the time and place of the public hearing on the question of assessment thereon for fiscal year 2026-27. A diagram of the area encompassed by the District is attached hereto as Exhibit A; and
WHEREAS, the Report is on file with the City Clerk of the City of Diamond Bar; and
WHEREAS, said hearing was duly and properly noticed, commenced in the SCAQMD Auditorium located at 21865 Copley Drive, Diamond Bar, California on June 16, 2026, and was concluded prior to the adoption of this Resolution; and WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred.

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

Section 1. The Recitals of this Resolution are in all respects true and correct.

Section 2. The City Council hereby expressly overrules any and all protests filed objecting to the proposed improvements specified herein or the assessment levied, therefore.

Section 3. Based upon its review of the Report, and other reports and information, the City Council hereby finds that (i) the land within the District will be benefitted by the improvements specified in the Report, (ii) the District includes all of the lands so benefitted, and (iii) the net amount to be assessed upon the lands within the District for the fiscal year 2026-27 is apportioned by a formula and method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.

Section 4. The improvements specified in the Report are hereby ordered to be completed.

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Resolution No. 2026-27
2 Section 5. The assessment diagram contained in the Report and the assessment rates of $608.88 for the single-family and $560.17 for condominium parcels, respectively, within said District are hereby adopted and confirmed and said assessment is hereby levied for the fiscal year 2026-27.

Section 6. The assessment is in compliance with the provisions of the Act, and the City Council has complied with all laws pertaining to the levy of an annual assessment pursuant to the Act. The assessment is levied for the purpose of paying the costs and expenses of the improvements described in the Report for fiscal year 2026-27.

Section 7. The City Council hereby certifies that the assessments to be placed on the 2026-27 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 Landscaping Assessment District No. 41-2021.

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

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

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

PASSED, ADOPTED AND APPROVED this 16th day of June 2026.

CITY OF DIAMOND BAR

Steve Tye, Mayor
[Signatures continued on the following page]

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Resolution No. 2026-27
3 ATTEST:

I, Kristina Santana, City Clerk of the City of Diamond Bar, do hereby certify that the foregoing Resolution was passed, approved and adopted at the regular meeting of the City Council of the City of Diamond Bar held on the 16th day of June 2026, by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAINED: COUNCIL MEMBERS:
_______
Kristina Santana, City Clerk

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Resolution No. 2026-27
4 Exhibit A
Landscaping Assessment District No. 41-2021

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Fiscal Year 2026/27 Engineer’s Report For:

Landscaping Assessment District No. 41-2021
May 2026

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TABLE OF CONTENTS

1. Engineer’s Letter.............................................................................................................1

2. Introduction ...................................................................................................................2

2.1 Background..............................................................................................................2

2.2 Process for Annual Assessment ..............................................................................2

2.3 Legislative Context ..................................................................................................3

3. Plans and Specifications..................................................................................................6

4. Estimate of Costs............................................................................................................8

4.1 District Budget.........................................................................................................8

4.2 Balance to Levy........................................................................................................8

5. Method of Apportionment............................................................................................ 10

5.1 Special Benefit.......................................................................................................10

5.2 General Versus Special Benefit .............................................................................13

5.3 Quantification of General Benefit.........................................................................14

5.4 Method of Assessment..........................................................................................15

5.5 Annual Assessment Calculation ............................................................................18

5.6 Cost of Living Inflator ............................................................................................18

5.7 Duration of Assessment ........................................................................................18

5.8 Appeals and Interpretation ...................................................................................18

6. Assessment Diagram..................................................................................................... 20

7. Assessment Roll............................................................................................................ 22

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City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 2

2. INTRODUCTION

2.1 Background
The City of Diamond Bar (the “City”) services and maintains turf areas, slopes and open space areas, and other improvements (the “Improvements”) in the Diamond Bar Hills area of the City. In order to fund the maintenance and operation (the “Services”) of these projects and Improvements, Landscaping Assessment District No. 41 was formed in 1985 by the County of Los Angeles prior to the incorporation of the City of Diamond Bar. Upon incorporation in 1989, the City assumed jurisdiction over the District. Since the passage of Proposition 218, the assessments for this existing district cannot be increased beyond the previously approved amount of $280.00 per parcel. This assessment amount does not generate sufficient revenue to fund the District’s Improvements and Services, and the annual shortfalls have been funded by the City’s General Fund.

In 2021, the City Council directed that a new assessment be proposed and voted on by property owners within the District in accordance with Proposition 218 (Article XIIIC and D of the California Constitution).

Their intent was to replace the existing District No. 41 with a new District No. 41-2021 that would adhere to the existing boundary and include the same improvements and services. These proposed assessments were supported by 87.55% of assessment ballots received from property owners (with each ballot weighted by the amount of assessments it represented). Therefore, on July 6, 2021, by its Resolution No. 2021-33, the City Council levied the new assessments for District No. 41-2021.

This Engineer’s Report (the "Report") was prepared to establish the budget for the Improvements (as described below) that will be funded by the Fiscal Year 2026/27 assessments and other revenue, and to determine the general and special benefits received from the Improvements by property within the District and the method of assessment apportionment to lots and parcels. This Report and the assessments have been made pursuant to Part 2 of Division 15 of the California Streets and Highways Code, commonly known as the Act, and Article XIII D.

2.2 Process for Annual Assessment
As required by the procedures specified in the Act, an Engineer’s Report must be prepared on an annual basis which contains a full and detailed description of the improvements, the boundaries of the assessment district and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the assessment district.

The City Council must also annually adopt a resolution of intention which:
• Declares the intention of the City Council to levy and collect assessments within the assessment district for the fiscal year stated therein.
• Generally describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements.
• Refers to the assessment district by its distinctive designation and indicates the general location of the assessment district.

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City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 3 • Refers to the report of the engineer, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the assessment district and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the assessment district. • Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment.
• States whether the assessment is proposed to increase from the previous year.

If the assessments are to be levied in the same or lesser amounts than the maximum assessment allowed, the City Clerk shall give notice of the public hearing by causing the Resolution of Intention to be published.

Any interested person may, prior to the conclusion of the public hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. During the course or upon conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including changes in the improvements, any zones within the assessment district, and the proposed diagram or the proposed assessment. If the assessment to be levied exceeds the maximum assessment allowed, the City must comply with the procedures specified in Article XIII D and Proposition 218.

The City Council, upon conclusion of the public hearing must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the report. If confirmed, the assessments would be submitted to the County Auditor Controller for inclusion on the property tax roll.

Beginning in 2025, NBS became the Assessment Engineer for the District. To maintain an accurate reference and legally defensible record of the District, pertinent language used in previous engineer’s reports has been retained herein and is cited with footnotes, as appropriate.

2.3 Legislative Context
In 1996, California Voters adopted Proposition 218, the “Right to Vote on Taxes Act” which added Articles XIII C and XIII D to the California Constitution. Article XIII D imposes certain substantive and procedural requirements on any agency that wishes to levy special assessments.

Article XIII D imposes four basic substantive requirements on assessments1:
• All parcels that will have a special benefit conferred upon them and upon which an assessment will be imposed must be identified;
• The general benefits must be distinguished from the special benefits conferred on the parcels; • The proportionate special benefit derived by each parcel must be determined in relationship to the entirety of the capital improvement, the maintenance and operation expenses of the public improvement, or the cost of the property related service being provided; and • The amount assessed to a parcel must not exceed the reasonable cost of the proportional special benefit conferred on that parcel and does not include any costs attributable to the general benefit. 1 California Constitution Article XIII D Section 4.

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City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 4 Since the initial passage of Proposition 218, several court rulings have helped provide context and direction on the practical implementation procedures and requirements for levying assessments. Several of the key concepts from these rulings are summarized below.

GENERAL BENEFIT
Article XIII D requires an agency to separate the general benefits from the special benefits conferred because only special benefits are assessable.

The Court of Appeal in Golden Hills Neighborhood Assn., Inc. v. City of San Diego (2011)2clarified this concept by stating, “Separation and quantification of general and special benefits must be accomplished by apportioning the cost of a service or improvement between the two and assessing property owners only for the portion of the cost representing special benefits.” The Court of Appeal in Beutz v. County of Riverside (2010) (“Beutz”) 3 quoted from the Legislative Analyst’s
Office pamphlet titled “Understanding Proposition 218” which states an agency must, “estimate the amount of special benefit landowners would receive from the project or service, as well as the amount of ‘general benefit.’ This step is needed because Proposition 218 allows local government to recoup from assessments only the proportionate share of cost to provide the special benefit.” The Court in Beutz furthered this idea stating, “Separating the general from the special benefits of a public improvement project and estimating the quantity of each in relation to the other is essential if an assessment is to be limited to the special benefits.”
The Court of Appeal in Silicon Valley Taxpayers' Association Incorporated v. Santa Clara County Open Space Authority (2008) (“SVTA”)
4 clarified that general benefits are not restricted to benefits conferred only on persons and property outside the assessment district but can include benefits both conferred on real property located in the district or to the public at large. The “public at large” includes all members of the public, including those who live, work, and shop within the district, and not simply transient visitors.

BENEFIT-BASED NOT COST-BASED
In Bonander v. Town of Tiburon (2009) (“Tiburon”)
5 , the Court of Appeal clarified the idea that assessments must be apportioned based upon benefit rather than cost. The Court stated, “proportionate special benefit is the basis upon which a project’s total assessable costs are apportioned among parcels within an assessment district.”
The assessment on a particular property cannot be based on the relative cost of the improvements, but rather the special benefit conferred on such property. The Court in Tiburon also stated, “an assessment represents the entirety of the cost of the improvement or property-related service, less any amount attributable to general benefits (which may not be assessed), allocated to individual properties in proportion to the relative special benefit conferred on the property.” 2 Golden Hill Neighborhood Assn. v. City of San Diego CA4/1, D062203 (Cal. Ct. App. 2013) 3 Beutz v. County of Riverside, 109 Cal. Rptr. 3d 851 (Cal. Ct. App. 2010) 4 Silicon Valley Taxpayers' Association Incorporated v. Santa Clara County Open Space Authority, 44 Cal. 4th 431 (2008). 5 Bonander v. Town of Tiburon, 147 Cal. App. 4th 1116 (Cal. Ct. App. 2007)

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City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 5

PUBLIC PROPERTY
Section 4, Subdivision (a) of Article XIII D states, in part, “Parcels within a district that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit.” Historically there had been differing opinions about whether this requirement that publicly owned property should not be exempt actually meant those properties must be assessed.

The Court of Appeal in Manteca Unified School District v. Reclamation District No. 17 et al (2017)6clarified this issue by stating, “Section 4, Subdivision (a) of Article XIII D of the California Constitution unambiguously conditions any continuing benefit assessment exemption on a showing by clear and convincing evidence of no special benefit.”

IMPRECISION
The Court in Tiburon acknowledged the difficulty of trying to precisely assign and measure special benefit, stating, “Any attempt to classify special benefits conferred on particular properties and to assign relative weights to those benefits will necessarily involve some degree of imprecision.” The Court in Tiburon went on to say that a formula assigning equal weight to different special benefits “may be a legally justifiable approach to measuring and apportioning special benefits, [but] it is not necessarily the only valid approach. Whichever approach is taken to measuring and apportioning special benefits; however, it must be both defensible and consistently applied.” 6 Manteca Unified School District v. Reclamation District No. 17 et al, C077906 (Cal. Ct. App. 2017)

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City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 6

3. PLANS AND SPECIFICATIONS
The work and improvements proposed to be undertaken by the City and the cost thereof paid from the levy of the annual assessment provide special benefit to assessor parcels within the District defined in the Method of Assessment herein. Consistent with the Act, the Improvements are generally described as follows:

The City maintains landscaping and other improvements in locations within the District’s boundaries. The work and Improvements to be undertaken by the District, and the cost thereof paid from the levy of the annual assessment provide special benefit to parcels within the District as defined in the Method of Assessment herein. In addition to the definitions provided by the Act, the work and Improvements are generally described as mini-parks, slopes, and open space areas within the District. The Assessment Diagram shows the location and extent of the Improvements to be installed, maintained, or serviced by the proceeds from the assessment.

Installation, maintenance, and servicing of Improvements, may include, but are not limited to, turf and play areas, landscaping, ground cover, shrubs and trees, irrigation systems, sidewalks, parking lots, lighting, fencing, graffiti removal and repainting, labor, materials, supplies, utilities and equipment, as applicable, at each of the locations owned, operated or maintained by the District.

Installation - means the construction of Improvements, including, but not limited to, land preparation (such as grading, leveling, cutting and filling), sod, landscaping, irrigation systems, walkways, drainage and lights, playground equipment, play courts, playing fields, recreational facilities, and public restrooms.

Maintenance - means the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including repair, removal, or replacement of all or part of any improvement; providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; the removal of trimmings, rubbish, debris, and other solid waste; the cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti.

Servicing - means the furnishing of electric current, or energy, gas or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements, or water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other improvements.

Incidental expenses include all of the following: (a) The costs of preparation of the report, including plans, specifications, estimates, diagram, and assessment; (b) the costs of printing, advertising, and the giving of published, posted, and mailed notices; (c) compensation payable to the County for collection of assessments; (d) compensation of any engineer or attorney employed to render services in proceedings pursuant to this part; (e) any other expenses incidental to the construction, installation, or maintenance and servicing of the Improvements; (f) any expenses incidental to the issuance of bonds or notes pursuant to Streets & Highways Code Section 22662.5; and (g) costs associated with any elections held for the approval of a new or increased assessment (according to Streets & Highways Code §22526).

Modifications to the District structure could include, but are not limited to, substantial changes or expansion of the Improvements provided, substantial changes in the service provided, modifications or

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City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 7 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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City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 8

4. ESTIMATE OF COSTS

4.1 District Budget
Fiscal Year 2026/27 estimated costs of maintenance and servicing the Improvements as described in the Plans and Specifications of this Report are summarized below.

Description
Proposed
FY 2026/27 Costs
Salaries & Benefits $41,973
Advertising 3,000
Utilities 86,000
Maintenance of Grounds/Buildings 25,000
Professional Services 5,000
Landscape Maintenance 225,000
Tree Maintenance 23,000
Weed/Pest Abatement 45,000
Capital Improvements 0
Total Estimated Expenditures $453,973
Contingencies/Reserves 75,152
Contributions from Other Sources (1) (198,820)
Fiscal Year 2026/27 Net Amount to be Assessed (2) $330,305 (1) Includes City General Fund contribution and fund balance carryover. (2) The net available funds, after incidental, administrative, financing and other costs shall be expended exclusively for Improvements within the boundaries of the District or as described herein, and appropriate incidental and administrative costs as defined in the Plans and Specifications section.

A list containing the Fiscal Year 2026/27 assessment and number of parcels proposed to be assessed is included in Section 7 of this Report.

4.2 Balance to Levy
The following table shows the total costs, additional revenues and contributions, and the balance to levy for Fiscal Year 2026/27.

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City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 9 Description Amount
Salaries & Benefits $41,973
Operating Expenses & Services 412,000
Capital Improvements / Reserves 75,152
Total District Costs $529,125
Contribution to (from) Operational Reserves (181,367)
Other Revenue Sources (1) (17,453)
Balance to Levy $330,305
(1) Includes City General Fund contribution.

Total District Costs - Includes the personnel services, maintenance, and operations, capital (including capital replacement costs), indirect costs, and equipment.

Contribution to (from) Operational Reserves - The operational reserves item provides funds to operate the District from the time period of July 1 (beginning of the fiscal year) through January when the County provides the City with the first installment of assessments collected from the property tax bills. This eliminates the need for the City to transfer funds from non-District accounts to pay for District charges during the first half of the fiscal year. Negative amounts shown here are transfers that are used to reduce the Balance to Levy.

Other Revenue Sources - The amount of additional funds designated for use by the District that are not from District assessments. These funds are added to the District account to reduce assessments and may be from either non-District sources including City General Fund contributions, fund balance carryover, or District sources including interest earnings.

Balance to Levy - The total amount to be levied and collected through assessments for the current fiscal year. The Balance to Levy represents the sum of the total direct and administration costs, reserves, contributions, and other revenue sources.

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City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 10

5. METHOD OF APPORTIONMENT
The following section includes an explanation of the benefits to be derived from the Improvements throughout the District, as well as a description of the assessment methodology used to apportion the total assessment to properties within the District.

The Fiscal Year 2024/25 Engineer’s Report was prepared by a different engineer of record and specific language from the Fiscal Year 2024/25 Engineer’s Report 7 has been referenced to describe the Method of Apportionment within the following section of this Report.

The District consists of all assessor parcels within the boundaries as defined by the Assessment Diagram included with this Report. Further, all assessor parcels, including all privately and publicly owned parcels, are identified by Assessor Parcel Numbers listed within the included assessment roll. The method used for apportioning the assessment is based on the proportional special benefits to be derived by the properties in the District over and above general benefits conferred on real property or to the public at large. The assessment is apportioned to the parcels in proportion to the relative special benefit from the Improvements.

The apportionment of special benefit is a two-step process: the first step is to identify the types of special benefit arising from the improvements, and the second step is to allocate the assessments to property based on the estimated relative special benefit for each type of property.

5.1 Special Benefit
The improvements are expected to confer certain special benefits to the parcels within the District.

Pursuant to the Prior Engineer’s Report, the special benefit conferred to parcels is more fully described as follows:

The following benefit categories summarize the types of special benefit to residential, commercial, industrial, and other lots and parcels resulting from the Improvements to be provided with the assessment proceeds. These types of special benefit are summarized as follows:

A. Proximity to Improved Landscaped Areas and Other Public Improvements within the District.

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.
7 Method of Apportionment and subsections as detailed in the Fiscal Year 2024/25 Engineer’s Report, City of Diamond Bar, Landscaping Assessment District No. 41-2021, dated July 2024 and approved by City Council on June 18, 2024 (“Prior Engineer’s Report”).

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City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 11 The SVTA decision provides enhanced clarity to the definitions of special benefits from landscaping and parks to properties in three distinct areas: proximity, expanded or improved access, and views. The SVTA decision also clarifies that a special benefit is a service or improvement that provides a direct advantage to a parcel and that indirect or derivative advantages resulting from the overall public benefits from a service or improvement are general benefits. The SVTA decision also provides specific guidance that setback landscaping is a direct advantage and special benefit to property that is proximate to a landscaped area that is improved by an assessment:

The characterization of a benefit may depend on whether the parcel receives a direct advantage from the improvement (e.g. proximity to a park) or receives an indirect, derivative advantage resulting from the overall public benefits of the improvement (e.g. general enhancement of the district’s property values).

Proximity, improved access and views, in addition to the other special benefits listed herein further strengthen the basis of these assessments. 8 In addition, the following special benefits are identified in the Prior Engineer’s Report:

PROXIMITY TO IMPROVED LANDSCAPED AREAS WITHIN THE DISTRICT Only the specific properties within close proximity to the Improvements are included in the District. The District has been narrowly drawn to include the properties that receive special benefits from the Improvements. Therefore, property in the District enjoys unique and valuable proximity and access to the Improvements that the public at large and property outside the District do not share.

In absence of the assessments, the Improvements would not be provided, and the public improvements funded in the District would be degraded due to insufficient funding for maintenance, upkeep and repair.

Therefore, the assessments provide Improvements that are over and above what otherwise would be provided. Improvements that are over and above what otherwise would be provided do not by themselves translate into special benefits but when combined with the unique proximity and access enjoyed by parcels in the District, they provide a direct advantage and special benefit to property in the District.

IMPROVED VIEWS WITHIN THE DISTRICT
The City, by maintaining permanent public improvements funded by the assessments in the District, provides improved views to properties in the District. The properties in the District enjoy close and unique proximity, access and views of the specific Improvements funded in the District; therefore, the improved and protected views provided by the assessments are another direct and tangible advantage that is uniquely conferred upon property in the District.

EXTENSION OF A PROPERTY’S OUTDOOR AREAS AND GREEN SPACES FOR PROPERTIES WITHIN CLOSE

PROXIMITY TO THE IMPROVEMENTS
In large part because it is cost prohibitive to provide large open land areas on property in the District, the residential, commercial, and other benefiting properties in the District do not have large outdoor areas 8 Method of Apportionment and subsections as detailed in the Fiscal Year 2024/25 Engineer’s Report, City of Diamond Bar, Landscaping Assessment District No. 38, dated July 2024 and approved by City Council on June 18, 2024 (“Prior Engineer’s Report”).

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City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 12 and green spaces. The Improvements within the District provide additional outdoor areas that serve as an effective extension of the land area for proximate properties because the Improvements are uniquely proximate and accessible to property in close proximity to the Improvements. The Improvements, therefore, provide an important, valuable and desirable extension of usable land area for the direct advantage and special benefit of properties in the District because such properties have uniquely good and close proximity to the Improvements.

SAFETY AND SECURITY WITHIN THE DISTRICT
The City, through proper installation, maintenance, and servicing of public and private improvements funded by the assessments in the District, provides increased security and safety by preventing crime and suppressing fire. For parks and recreation improvements, proper lighting and well-kept landscapes help to deter crime and vandalism. Other landscaped area activities such as slope maintenance and brush clearing provide critical fire suppression.

CREATION OF INDIVIDUAL LOTS FOR RESIDENTIAL USE THAT, IN ABSENCE OF THE ASSESSMENTS, WOULD

NOT HAVE BEEN CREATED
In the District, the original owner/developer(s) of the property within the District agreed unanimously to the assessments. The assessments provide the necessary funding for improvements that were required as a condition of development and subdivision approval. Therefore, such assessments allowed the original property to be subdivided and for development of the parcels to occur. As parcels were sold, new owners were informed of the assessments through the title reports, and in some cases, through Department of Real Estate “White Paper” reports that the parcels were subject to assessment. Purchase of property was also an “agreement” to pay the assessment.

Therefore, in absence of the assessments, the lots within most of the District would not have been created. These parcels, and the improvements that were constructed on the parcels, receive direct advantage and special benefit from the assessments.

SUMMARY OF RELATIVE WEIGHT OF BENEFIT FACTORS
A solid argument could be made that the creation of individual lots benefit comprises 100% of the benefit because the Improvements were incorporated into the original planning and design of the subdivision, and thus were deemed to be necessary and required for the development of the lot. Without those Improvements and associated benefit, the lots would not have been created. Nevertheless, four other definitive benefits accruing to the parcels within the District are identified, and an allowance should be made within the overall relative importance of benefits. The relative benefit level of the five identified benefits used in this Report is shown below.

Benefit Category Relative Weight
Proximity & Access 10%
Views 10%
Outdoor Area Extension 10%
Safety & Security 10%
Creation of Lots 60%
Total Benefit 100%

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City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 13

5.2 General Versus Special Benefit
Article XIIIC of the California Constitution requires any local agency proposing to increase or impose a benefit assessment to “separate the general benefits from the special benefits conferred on a parcel.” The rationale for separating special and general benefits is to ensure that property owners subject to the benefit assessment are not paying for general benefits. An assessment can fund special benefits but cannot fund general benefits. Accordingly, a separate estimate of the special and general benefit is given in this section. In other words:

Total
Benefit =
General
Benefit +
Special
Benefit
There is no widely accepted or statutory formula for general benefit. General benefits are benefits from improvements or services that are not special in nature, are not “particular and distinct” and are not “over and above” benefits received by other properties. SVTA provides some clarification by indicating that general benefits provide “an indirect, derivative advantage” and are not necessarily proximate to the improvements.

In this Report, the general benefit is liberally estimated and described and then budgeted so that it is funded by sources other than the assessment.

The starting point for evaluating general and special benefits is the current, baseline level of service. The assessment will fund Improvements “over and above” this general, baseline level and the general benefits estimated in this section are over and above the baseline.

A formula to estimate the general benefit is listed below:

General
Benefit =
Benefit to Real
Property Outside
the District
+
Benefit to Real
Property Inside the
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 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.

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City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 14

5.3 Quantification of General Benefit
Although the analysis used to support these assessments concludes that the benefits are solely special, as described above, consideration is made for the suggestion that a portion of the benefits are general.

General benefits cannot be funded by these assessments – the funding must come from other sources.

In this section, the general benefit from the Improvements is liberally estimated and described using the precise language from the Prior Engineer’s Report in the sections below.

BENEFIT TO PROPERTY OUTSIDE THE DISTRICT
Properties within the District receive almost all of the special benefits from the Improvements because properties in the District enjoy unique close proximity and access to the Improvements that is not enjoyed by other properties or the public at large. However, certain properties within the proximity/access radius of the Improvements, but outside of the boundaries of the District, may receive some benefit from the Improvements. Since this benefit is conferred to properties outside the District boundaries, it contributes to the overall general benefit calculation and will not be funded by the assessments. The general benefit to property outside of the District is calculated with the parcel and data analysis.

Since certain properties outside the District enjoy close proximity and access to the Improvements cannot be assessed by the District, this is a form of general benefit to other property. There are 23 parcels outside the District that are directly adjacent to areas where slopes are maintained by the District. The benefits conferred to these properties do not include the Lot Creation benefit factor, therefore the benefit is reduced by 60%. The general benefit to property outside of the District is calculated as follows.

Assumptions:
• 23 Parcels Outside the District
• 554 Parcels In the District
• 40% Benefit Factor
Calculation of General Benefit to Property Outside the District: 23 / (23 + 554) x 40% = 1.59%.

BENEFIT TO PROPERTY INSIDE THE DISTRICT THAT IS INDIRECT AND DERIVATIVE The “indirect and derivative” benefit to property within the District is particularly difficult to calculate. A solid argument can be presented that all benefit within the District is special, because the other Improvements are clearly “over and above” and “particular and distinct” when compared with the baseline level of service and the unique proximity, access and views of the other Improvements enjoyed by benefiting properties in the District.

Nevertheless, the SVTA decision indicates there may be general benefit “conferred on real property located in the district.” A measure of the general benefits to property within the assessment area is the percentage of land area within or directly abutting the District that is publicly owned and used for regional purposes such as major roads, rail lines and other regional facilities because such properties used for regional purposes could provide indirect benefits to the public at large. The District boundaries are narrowly drawn to include only the residential areas within the neighborhood, and there are no regional facilities within the District. Therefore, the indirect and derivative general benefits to property within the District are zero.

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City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 15

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

However, certain slopes maintained by the District may provide some enhancement to views enjoyed by the public as they drive past. Approximately 25% of the slopes and linear green areas maintained by the District lie along arterial roadways that carry a high percentage of traffic not associated with people who are not residents or property owners within the District. While there are not statistics available as to what percentage of passerby vehicle trips are by non-residents or non-property owners, a liberal factor of 90% is assumed.

Finally, of all the types of benefits conferred by the Improvements, passersby only benefit from views, which are estimated at 10% of the total benefits. Therefore, (90% of 25%) x 10% = 2.25% of the benefits from the Improvements are general benefits to the public at large.

TOTAL GENERAL BENEFITS
Using a sum of these three measures of general benefit, approximately 3.84% of the benefits conferred by the Improvements may be general in nature and should be funded by sources other than the assessment.

Landscaping General Benefit Calculation
Outside the District 1.59%
Inside the District 0.00%
Public At Large 2.25%
Total General Benefit 3.84%

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 inlieu contributions to the installation and maintenance of the Improvements such as other City assets that support and protect the Improvements. The City will contribute both monetary and in-lieu resources to ensure that the general benefits conferred by the proposed Improvements are not funded by the assessments.

5.4 Method of Assessment
The development of an assessment methodology requires apportioning benefit to determine the relative special benefit for each property. The precise language from the Prior Engineer’s Report is included below:

The allocation of special benefits to property is partially based on the type of property and the size of property. These benefits can also partially be measured by the occupants on

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City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 16 property in the District because such parcel population density is a measure of the relative benefit a parcel receives from the Improvements. It should be noted that many other types of “traditional” assessments also use parcel population densities to apportion the assessments. For example, the assessments for sewer systems, roads and water systems are typically allocated based on the population density of the parcels assessed. Therefore, the apportionment of benefit is reasonably based on the type of parcel, the size of parcels and the population density of parcels.

The next step in apportioning assessments is to determine the relative special benefit for each property. This process involves determining the relative benefit received by each property in relation to a single-family home, or, in other words, on the basis of Single Family Equivalents (“SFE”). This SFE methodology is commonly used to distribute assessments in proportion to estimated special benefit and is generally recognized as providing the basis for a fair and appropriate distribution of assessments. For the purposes of this Report, all properties are assigned an SFE value, which is each property’s relative benefit in relation to a single-family home on one parcel. In this case, the "benchmark" property is the single-family detached dwelling which is one Single Family Equivalent or one SFE.
9 RESIDENTIAL PROPERTIES
Certain residential properties in the District that contain a single residential dwelling unit are assigned 1.0 SFE. Detached or attached houses and zero-lot line houses are included in this category of single-family residential property. If there is more than one single family detached dwelling on a parcel, it will be charged one SFE per single family detached dwelling.

Another residential property type in the District is the condominium. These properties benefit from the Improvements in proportion to the average number of people who reside in multi-family residential units versus the average number of people who reside in a single-family home (“Population Density Factor”, or “PDF”). Using the total population of each property type in the City from recent Census data and dividing it by the total number of such households reveals that approximately 3.42 persons occupy each singlefamily residence, whereas an average of 2.48 persons occupy each condominium. The ratio of 2.48 people (condominium) to 3.42 people (single-family) results in a PDF of 0.73 for condominiums.

The PDF of 0.73 for condominiums is applied to certain benefit categories, whereas other benefit categories are applicable to condominiums in full measure. The calculation of the overall SFE factors are summarized below.
9 Method of Apportionment and subsections as detailed in the Fiscal Year 2024/25 Engineer’s Report, City of Diamond Bar, Landscaping Assessment District No. 41-2021, dated July 2024 and approved by City Council on June 18, 2024 (“Prior Engineer’s Report”).

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City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 17 Benefit Category Weight SFR Condo
PDF SFE Factor PDF SFE Factor
Proximity & Access 10% 100% 10% 73% 7.3%
Views 10% 100% 10% 73% 7.3%
Outdoor Area Extension 10% 100% 10% 73% 7.3%
Safety & Security 10% 100% 10% 100% 10%
Creation of Lots 60% 100% 60% 100% 60%
Total Benefit 100% 100% 92%
There are no other multi-family property types (e.g., duplex, triples, fourplex, apartments) in the District, and none are foreseen in the near future. Therefore, no other multi-family assessment rate is calculated.

VACANT/UNDEVELOPED PROPERTIES
While there are currently no vacant or undeveloped properties in the District, the following discussion is included in the event that properties become vacant in the future.

The benefit to undeveloped properties is determined to be proportional to the corresponding benefits for similar type developed properties, but at a lower rate due to the lack of improvements on the property. A measure of the benefits accruing to the underlying land is the average value of land in relation to Improvements for developed property. An analysis of the assessed valuation data from the City found that approximately 45% of the assessed value of improved properties is classified as the land value. It is reasonable to assume, therefore, that approximately 45% of the benefits are related to the underlying land and 55% are related to the improvements and the day-to-day use of the property. Using this ratio, the SFE factor for vacant/undeveloped parcels is 0.45 per parcel.

OTHER PROPERTY TYPES
Notwithstanding the foregoing discussion, there are four other types of property uses to be considered:

Water Utility: The Walnut Valley Water District owns a parcel with two water tanks used to supply water for domestic use and fire protection. This property has no people stationed on-site and derives no benefit in any category. Therefore, it is not assessed.

Open Space: The open space parcels that lie within the District are part of the Improvements (views, safety and security, etc.) Therefore, these parcels are not assessed.

The property in the District is fully developed, has been stable since its original development in the late 1980s, and is zoned such that a change in the predominately residential land use is not expected in the future. As a result, there is no analysis of type, size, and population densities for other uses such as commercial, industrial, and institutional properties.

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City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 18

5.5 Annual Assessment Calculation
The table below shows the calculation of the estimated number of SFEs for Fiscal Year 2026/27.

Description Parcel Count SFE Factor SFEs
Single Family Parcels 410 100% 410.00
Condominium Parcels 144 92% 132.48
Total 554 542.48
The following table shows the calculation of the assessment rate.

Description
Fiscal Year 2026/27
Amount
Balance to Levy (1) $330,305.00
Total SFEs 542.48
Assessment rate per SFE $608.88
(1) Does not include rounding.

The assessment rate per land use is shown below.

Description
Fiscal Year 2026/27
Assessment Rate
Single Family Parcels $608.88
Condominium Parcels $560.17

5.6 Cost of Living Inflator
The assessment shall be subject to an adjustment up to a cap of 3% annually, which adjustment shall be based upon actual costs, including any reasonable reserves, supported by a report prepared in accordance with Article XIIID of the California Constitution. If the report does not support an increase or supports a reduction in the assessment, then the assessment shall not be increased or shall be lowered as applicable.

5.7 Duration of Assessment
It is proposed that the assessments be continued every year after their formation, so long as the public improvements need to be maintained and improved, and the City requires funding for the improvements in the District. As noted previously, the assessment can continue to be levied annually after the City Council approves an annually updated Engineer’s Report, budget for the assessment, improvements to be provided, and other specifics of the assessment. In addition, the City Council must hold an annual public hearing to continue the assessment.

5.8 Appeals and Interpretation
Any property owner who feels that the assessment levied on the subject property is in error as a result of incorrect information being used to apply the foregoing method of assessment may file a written appeal

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City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 19 with the City Manager or his or her designee. Any such appeal is limited to correction of an assessment during the then-current Fiscal Year and applicable law. Upon 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.

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City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 20

6. ASSESSMENT DIAGRAM
The parcels to be assessed in the District are shown on the Assessment Diagram, which is on file with the City Clerk of the City of Diamond Bar and includes all those properties included in the original formation of the District and subsequent annexations. The following Assessment Diagram is for general location only and is not to be considered the official boundary map. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the County Assessor of the County of Los Angeles, at the time this Report was prepared, and are incorporated by reference herein and made part of this Report.

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City of Diamond Bar
Landscaping Assessment District No. 41-2021- Fiscal Year 2026/27 Engineer’s Report 21

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City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 22

7. ASSESSMENT ROLL
Assessor’s parcel identification, for each lot or parcel subject to the assessment, shall be based on the County Assessor’s secured roll data for the applicable year in which this report is prepared and is incorporated herein by reference.

A listing of assessor’s parcels subject to the assessments for Fiscal Year 2026/27, along with the assessment amounts, is on file in the office of the City Engineer and incorporated herein by reference.

Based on County Assessor’s secured roll data, current assessor’s parcels, including corrected and/or new assessor’s parcels, will be submitted and/or resubmitted to the County Auditor/Controller. The annual assessment amount to be levied and collected for the resubmitted parcel(s) shall be determined in accordance with the method of apportionment and assessment rate approved in this report. Therefore, if a single assessor’s parcel has a status change in development, other land use change, or subdivides into multiple assessor’s parcels, the charge amounts applied to each of the new assessor’s parcels shall be recalculated and applied according to the approved method outlined in the method of apportionment and assessment rate rather than a proportionate share of the original assessment amount.

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Agenda Item #: 8.1
Meeting Date: June 16, 2026

CITY COUNCIL AGENDA REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
SUBJECT: Employment Agreement With New City Manager Ryan Mclean, To Be Effective July 1, 2026.

STRATEGIC GOAL: Responsible Stewardship of Public Resources Open, Engaged and Responsive Government
Safe, Sustainable and Healthy Community
RECOMMENDATION:

A. Approve the employment agreement with Ryan McLean to become City Manager beginning on July 1, 2026; and
B. Approve the amendment and restatement of the MissionSquare Retirement Governmental Money Purchase Plan Adoption Agreement (401(a) plan) and authorize City Manager Dan Fox to execute the agreement.

FINANCIAL IMPACT:

Funding for the City Manager’s salary and fringe benefits have been included in the adopted budget for the 2026/2027 fiscal year.

BACKGROUND:

After the announcement by City Manager Dan Fox that he will be retiring on June 30, 2026, the City Council selected Assistant City Manager Ryan McLean to be appointed as the new City Manager for the City. Mayor Tye, Mayor Pro Tem Low, and the City Attorney negotiated an employment agreement with Mr. McLean.

Mr. McLean was raised in the City and attended the local schools. He received his BA in Economics from UC Irvine, and is a credentialed city manager with the International City/County Management Association.

Mr. McLean has been employed by the City since 2000 and has served as acting Parks and Recreation Director, City Clerk, and Human Resources Manager at various points of his career with the City. He has served the City as Assistant City Manager since 2016. In his role as Assistant City Manager, he has served as the primary liaison between the City Manager's office and the various City departments. He has led the development of key City initiatives including the first strategic plan, the first long-term fiscal sustainability plan/forecast, district elections, public outreach series (City Government Explained and Let’s Talk Public

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Agenda Item #: 8.1
Meeting Date: June 16, 2026
Safety), and has negotiated and managed multiple City contracts, including the largest City contracts with the Sheriff’s, and the solid waste franchise agreements with Valley Vista and Waste Management.

MissionSquare 401(a) Plan
On July 25, 1995, the City Council approved the establishment of a money purchase retirement plan in the form of the ICMA Retirement Corporation (now MissionSquare Retirement) Prototype Money Purchase Plan and Trust for the City Manager job classification. This retirement savings benefit was setup and only used by a former City Manager and required monthly employee contributions. Since then, the original Plan document was executed in 1995 and restated in 2016 and 2022 for compliance purposes and renamed to MissionSquare Retirement Governmental Money Purchase Plan or otherwise known as a 401(a) plan (“Plan”).

Section 7.D of Mr. McLean’s employment agreement stipulates that the $15,000 in deferred compensation will be deposited in a City sponsored 401(a) deferred compensation plan. In order to comply with the terms of the new City Manager employment agreement effective July 1, 2026, the City must update the Plan agreement.

The attached Plan agreement is modified to reflect an annual Employer contribution of $15,000 to the new City Manager’s 401(a) plan account and removes the required employee contribution. Staff recommends that the City Council authorize the current City Manager to sign and execute the attached MissionSquare Retirement Governmental Money Purchase Plan Adoption Agreement effective July 1, 2026.

ANALYSIS:

Summary of Agreement Terms
Pursuant to Government Code § 54953, the City Council is required to orally report a summary of a recommendation concerning the salary and compensation paid in the form of fringe benefits to the city manager. That summary is as follows:
• Mr. McLean would become the City Manager effective July 1, 2026. • His salary would be $289,806.03 annually, which will be adjusted by cost of living or consumer price index adjustments approved by the City Council for other executive management employees. • He would receive a $750 per month car allowance and $15,000 in deferred compensation annually. • He will receive the same retirement, vacation, and medical benefits provided to other City executive management employees.

LEGAL REVIEW:

The City Attorney has reviewed the employment agreement with Mr. McLean and approved as to form and content.

PREPARED BY:

Omar Sandoval, City Attorney, City Attorney's Office
ATTACHMENTS:

1. City Manager Contract (Ryan McLean)

2. Money Purchase Plan Adoption Agreement Form June 2026

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1 CITY OF DIAMOND BAR

CITY MANAGER EMPLOYMENT AGREEMENT
This Employment Agreement ("Agreement") is made and entered into as of this 16th day of June 2026, by and between the CITY OF DIAMOND BAR, a general law city and municipal corporation (hereinafter "City"), and RYAN MCLEAN (hereinafter "Employee"), both of whom understand as follows:

R E C I T A L S
A. City desires to engage the services of Employee, and Employee desires to accept employment as City Manager of the City.

B. The City Council desires to:
(1) Encourage the highest standards of fidelity and public service on the part of Employee; and
(2) Provide a just means for terminating Employee's services at such time as he may be unable fully to discharge his duties, or when City may desire otherwise to terminate his employment.

C. The parties further desire to establish certain benefits and certain conditions of Employee's employment.

AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants herein, the parties agree as follows:

1. Appointment and Term. City hereby appoints Employee as City Manager of City and Employee hereby accepts such employment with City beginning on July 1, 2026, and continuing until Employee or the City Council terminates this Agreement pursuant to Section 3 below. Employee is employed by City in an “at-will” capacity serving at the pleasure of the City Council. Either the City Council or Employee may terminate this Agreement at any time with or without cause and in its or his sole discretion, as set forth in this Agreement.

2. General Duties. Employee will perform all the city manager functions and duties specified in the Diamond Bar City Code, the Government Code of the State of California and any other applicable laws of the State of California, and the functions and duties as the administrative head of the government of the City. As City Manager, Employee shall also perform such other functions and duties, not inconsistent with the terms of this Agreement, as the City Council may legally and properly assign to that position from time

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2 to time. Employee shall not consult or engage in other non-City connected business or employment without the prior knowledge and express written approval of the City Council.

3. Termination and Separation Pay/Severance.

A. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the City Council to terminate, by a majority vote of the City Council, the services of Employee without cause, at any time, subject only to the City providing written notice to Employee, and complying with paragraph D of this Section 3. Notice of termination shall not be given during or within a period of ninety (90) days succeeding any general municipal election held in the City at which members of the City Council are elected or when a new city councilmember is appointed.

B. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of Employee to resign at any time from his position with City, subject only to Employee providing thirty (30) days prior written notice to the City.

C. Notwithstanding the provisions of Paragraph A of this Section 3, in the event Employee is terminated by City for "cause," then City may terminate this Agreement immediately and Employee shall be entitled to only the compensation accrued up to the date of termination. As used in this section, "cause" shall mean any of the following:
(1) Conviction of any felony.
(2) Conviction of a misdemeanor arising directly out of Employee's duties or performance under this Agreement.
(3) Misappropriation of public funds.
(4) An indictment is brought by the Grand Jury.
(5) Willful abandonment of duties consisting of the failure to report to work for five consecutive days (for reasons not medically related) and not notifying staff and the City Council of his leave status.
(6) A pattern of repeated, willful and intentional failure to carry out clear, unambiguous, materially significant and legally constituted policy decisions of the City Council made by the City Council as a body. (7) Any other intentional or negligent action or inaction by Employee that: (a) materially and substantially impedes or disrupts the operations of the City or its organizational units; (b) is detrimental to employees or public safety; (c) violates properly established rules or procedures of the City causing a material and substantial adverse impact on the City; or (d) has a material and substantial adverse effect on the City's interests as clearly defined and

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3 delineated by properly established City Council actions, policies, regulations, or City ordinances.

D. In the event Employee is terminated by the City Council at any time that Employee is still willing and able to perform the duties of City Manager, and the termination is without cause as "cause" is defined in Paragraph C above, then, subject to the limitations set forth in Government Code Section 53260, the City shall pay Employee a lump sum cash payment equal to nine (9) month's aggregate salary and benefits. The word "termination" in this paragraph shall include a reduction in salary (other than an across-the-board reduction applicable to all Executive Management employees) or other financial benefits of Employee or Employee's resignation, if preceded by a formal request by a majority of the City Council that he resign.

E. Effect of Payment of Severance/Release.
(1) This Paragraph E applies only to the following matters: (a) any rights of Employee to receive severance benefits under this Agreement, (b) any right of employee to continued employment with City, and (c) any claim, demand, or cause of action or damages for wrongful termination (collectively the "Released Matters").
(2) This Section does not otherwise affect, waive, nor release any other rights Employee may have under this Agreement, or applicable law. (3) Upon City's full payment of severance benefits to Employee and Employee's acceptance thereof, Employee (a) releases and discharges City and its elected officials, appointed officers, employees, sub-contractors, agents, accounts, attorneys, successors and all other persons acting for, under, or in concert with City both past and present from any and all personal claims, demands, actions, causes of action, obligations, damages, liabilities, losses, costs and expenses, including attorney's fees of any kind or nature whatsoever, past, present and future, arising from, relating to or in connection with the Released Matters, and (b) agrees to waive any and all claims, demands, actions, causes of action, obligations, liabilities, claims of credits or offsets, costs and expenses, including attorney's fees, of any kind or nature whatsoever as to the Released Matters. As to the Released Matters only, Employee acknowledges that he has read and understands California Civil Code § 1542 which states:
"A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party."

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4 The parties agree that full payment of the severance benefits in this Agreement and Employee's acceptance thereof, acts as a complete and total release of all future claims which may arise out of the Released Matters whether such claims are currently known or unknown, foreseen or unforeseen, contingent or absolute; and as to the Released Matters the parties intentionally and specifically waive any rights they may have under the provisions of Civil Code § 1542, as well as under any other statutes or common law principles of similar effect, and each party assumes full responsibility for such injuries, damages, losses or liabilities that any of them may hereafter incur with respect to the Released Matters. This section will survive termination of the Agreement.
(4) Pursuant to Government Code §§ 53243 et seq., any severance provided Employee under this Agreement must be reimbursed to City if Employee is convicted of a crime involving abuse of his City Manager position as defined by Government Code § 53243.4, as may be amended. Pursuant to Government Code § 53243, if the City Council determines, in its sole discretion, to place Employee on paid leave pending an investigation and such which investigation results in Employee being convicted of a crime involving abuse of his office, Employee shall fully reimburse the City all such paid leave within six months of the conviction.

4. Revolving Door. Employee must comply with Government Code § 87406.3 for a period of one year after separating from service with City. This section will survive termination of this Agreement.

5. Salary.

A. Effective July 1, 2026, the City agrees to pay Employee an annual base salary of $289,806.03 (Two Hundred Eighty-Nine Thousand Eight Hundred Six Dollars and 03/100), prorated and paid on the City's normal paydays for its employees, subject to deductions and withholdings of all sums required for federal and/or state income tax, and other deductions or withholdings required by then current state, federal or local law.

The City shall also deduct from his annual base salary any applicable sums that Employee is obligated to pay because of participation in plans or programs described in Section 7 of this Agreement and Employee hereby authorizes such deductions. Employee's salary shall be reflected in the City's employee salary schedule and may be adjusted by the City Council as shown therein. The City agrees to adjust the Employee’s salary with the same Cost of Living or Consumer Price Index adjustment as is provided to Executive Management employees.

B. At the time of his annual evaluation, City agrees to evaluate Employee's salary and/or any other benefits Employee receives under this Agreement and to make modifications in such amounts and to such an extent as City Council in its discretion may determine that it is desirable to do so.

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5 6. Hours of Work.

A. It shall be the duty of Employee to devote his entire time to the duties of his office and in furthering the interest of the City except as otherwise provided in this Agreement. Employee may work a 9/80-work schedule, meaning that he is entitled to be off work on alternate Fridays, provided that Employee's duties may involve expenditures of time in excess of nine (9) hours per day, eighty (80) hours per two-week period, and will also include time outside normal office hours such as attendance at City Council and other meetings. Employee shall be exempt from paid overtime compensation.

B. Notwithstanding the foregoing, Employee may expend reasonable amounts of time for educational, charitable, personal, or professional activities which shall not be deemed a breach of this Agreement if those activities do not conflict or materially interfere with the professional services required under this Agreement; such limited activities shall not require the prior consent of the City Council.

7. Retirement and Benefits.

A. Retirement. During the term of this Agreement, City shall contribute to employer's and Employee's portion of Employee's membership in the Public Employees Retirement System. Employee shall pay any legally required Social Security withholding.

B. Medical and Other Insurance. City shall provide Employee with the same health insurance, disability insurance and life insurance benefits as is provided to Executive Management employees of the City to be applied towards a cafeteria plan for purchase of health, dental, vision, life insurance and other similar benefits at Employee's election.

C. Other Insurance. City shall provide and pay for all other insurance mandated by State law.

D. Deferred Compensation. City shall contribute $15,000 per year to a City sponsored 401(a) Deferred Compensation Plan on behalf of Employee.

E. Termination of Benefits. Notwithstanding the foregoing, City's obligation to pay Employee health benefits, including dependents, terminates upon the employment of Employee by another employer on the date such benefits are effective for Employee.

F. Car Allowance. City agrees to pay Employee a monthly car allowance of Seven Hundred Fifty Dollars ($750) per month. The car allowance is intended to reimburse Employee for the use of his private vehicle for City business. Employee must

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6 provide his own automobile for his use in performing his duties and is responsible for all maintenance, repair, fuel and insurance expenses for said vehicle.

8. Sick Leave, Vacation and Holidays.

A. Leave. Employee shall be entitled to sick leave, vacation leave, administrative leave, floating holiday and bereavement leave in the same manner as Executive Management employees of the City. Employee shall accrue leave time at the same monthly rate as provided to Executive Management employees with Employee's tenure.

B. Holidays. Employee shall be entitled to the same number of paid holidays per year as provided to other City employees.

9. Professional Development. City agrees to budget for and pay travel and subsistence expenses of Employee for professional travel, official travel, meetings necessary to pursue official and other functions for the City and to continue professional development of Employee, to the extent deemed reasonable by the City Council.

10. Memberships. City agrees to pay Employee's membership dues in the International City Management Association ("ICMA"), California League of Cities and other similar organizations to which City is a member, at City expense with prior City approval. Employee shall have a reasonable right to attend meetings of such organizations. City agrees to pay for such other professional membership dues and subscriptions as are approved in advance by the City Council.

11. General Expenses. City recognizes that certain extraordinary expenses of a nonpersonal and job affiliated nature may be incurred by Employee. City agrees to reimburse Employee for reasonable expenses which are submitted to the City Council within thirty (30) days for approval and which are supported by expense receipts, statements or personal affidavits, and an audit thereof in like manner as other demands against the City.

12. Evaluation of Performance. On or about the twelfth (12th)-month anniversary of the commencement of this Agreement, the City Council shall review and provide Employee with an evaluation of his performance based on criteria established by the Council with Employee's assistance. The City Council shall conduct such evaluation annually thereafter. Notwithstanding the foregoing, the City Council may evaluate Employee at any time.

13. Confidentiality. Employee acknowledges that in the course of his employment contemplated herein, Employee will be given or will have access to confidential and proprietary documents and information relating to the City, its residents, businesses, employees, and customers ("Confidential Information"). Such Confidential Information may include, but is not limited to, all information given to or otherwise accessible to

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7 Employee that is not public information or would be exempt from public disclosure as confidential, protected, exempt, or privileged information. Employee shall hold the Confidential Information in trust for the City's benefit and shall not disclose the Confidential Information to others without the express written consent of the City. All Confidential Information shall be promptly returned to the City immediately upon the effective date of any termination or resignation.

14. Other Terms and Conditions of Employment. The City Council may from time to time fix other terms and conditions of employment relating to the performance of Employee provided such terms and conditions are not inconsistent with or in conflict with the provisions of this Agreement, the Diamond Bar City Code, or other applicable law.

15. General Provisions.

A. The text herein shall constitute the entire agreement between the parties.

B. If Employee dies or becomes incapacitated during the term of this Agreement, any accrued and unpaid wages provided by the terms of this Agreement shall be paid by City to Employee's spouse.

C. If any provision or portion hereof contained in this Agreement is held to be unconstitutional, invalid or unenforceable the remainder of this Agreement or portion thereof shall be deemed severable and shall not be affected and shall remain in full force and effect.

D. City agrees to defend and indemnify Employee in accordance with the California Government Code.

E. City shall bear the cost of any fidelity or other bonds required of Employee under any law or ordinance. This Agreement may be changed or amended by the mutual written consent of City and Employee. Any benefits to Employee under this Agreement may be increased or added to by motion of the City Council without formal amendment to the Agreement.

F. Employee is expected to conform to the ICMA Code of Ethics and must comply with all applicable provisions of the City's conflict of interest code. [SIGNATURE PAGE FOLLOWS]

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8 IN WITNESS WHEREOF the parties have executed this Agreement as of the day and year first above written.

EMPLOYEE
________________________________

RYAN MCLEAN

CITY OF DIAMOND BAR
________________________________

STEVE TYE, MAYOR
ATTEST:
____________________________

KRISTINA SANTANA,

CITY CLERK
APPROVED AS TO FORM:
_____________________________

OMAR SANDOVAL,

CITY ATTORNEY

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