Escalon City Council
July 7, 2025

Farries Chappel
Supervisor, Safety and Training
Experience
MTM Transit, LLC, Tracy, CA, 2022 to Present
Supervisor, Safety and Training, 2024 to Present
 Assists with Corporate Safety Incentives and programs effectively and consistently, including assignment of Safety Points.
 Aids with the compliance of all safety manuals, programs and policies and practices, ensuring they are current and meet the needs of the operating divisions.  Helps with the review of passenger and employee accidents/incidents to indicate the cause and preventability.
 Collaborates with local Leadership to deliver comprehensive safety meetings and plans with the guidance of management.

Road Supervisor, 2022 to 2024
 Oversaw on time performance measures of drivers, monitored driving and safety practices of drivers daily
 Provided oversight of fleet maintenance program
 Responded and coordinated data and photo collection at accident and incident scenes  Investigate and assist with accident determination
 Assisted drivers with questions, provided customer assistance and overall on the road support
 Assisted customers with information and complaint resolution  Provided management with reports to assist with the evaluation of route and schedule effectiveness
First Transit, Merced, CA, 2020 to 2021
Manager
 Responsible for all transportation activities including, but not limited to, the oversight of vehicles, contract operations, and safety conditions.  Managed the process and verification of operations payroll for employees.  Responsible for the oversight of various departments including Dispatch, Maintenance, Fleet Control, etc.

Docusign Envelope ID: 6A6BF070-7636-4D4B-8B71-AFDCE093F91A

Farries Chappel
Supervisor, Safety and Training
Experience (continued) Restoration Hardware, Patterson, CA, 2018 to 2020 Shipping Manager
MV Transportation, Livermore, CA, 2016 to 2018
Safety and Training Manager

Spectrum Security, Adelanto, CA, 2015 to 2016
Transportation Officer

GEO Group, Adelanto, CA, 2012 to 2015
Transport Detention Manager

Veolia Transportation, Hesperia, CA, 2007 to 2012
Assistant General Manager
Education & Training
 Designated Employer Representative (DER) – 2024
 Supervisor Reasonable suspicion Drug & Alcohol Crouse – 2024  BTW Train the Trainer course – 2023
 DOT hours of service Audit compliance – 2013
 Advance Mobility Device Securement – (NTI issued by State of California) – 2009  Human Resource Crs. – 2009
 Controlled Substance Reasonable Suspicion training for supervisors – 2009  Advanced Managed Course University of South Florida – 2008  Certified California DMV Examiner – 2005
 Cal-Tip Transit Security – 2002
 ATC University of Management – 2001
 Human Resources Management American Council of Education – 1990 Docusign Envelope ID: 6A6BF070-7636-4D4B-8B71-AFDCE093F91A

Scott Transue
Regional Vice President
Experience
MTM Transit, San Diego, CA, 2016 to Present
Regional Vice President
 Oversees MTM Transit operations in the Western part of the United States  Uses a hands-on approach to ensure all clients receive personal, specific support  Works in collaboration with operations support departments to ensure the most appropriate and cost-effective delivery of services are provided  Ensures business outcomes and contract goals are defined and met  Keeps abreast of changes to transit program rules, regulations, and policies, and works with clients to acquire a thorough understanding of their local climates and issues  Follows through with service issues, troubleshooting problems, and concerns in a timely and professional manner
Southland Transit, Inc., El Monte, CA, 2012 to 2016
Vice President, COO
 Responsible for the control and operation of the company, developing and monitoring division budgets, and ensuring services were provided within budget  Directed and managed overall operations of transit services, reduced operational expenses by 30%
 Developed ongoing goals and objectives for subordinate staff and oversaw operations and vendor contracts of various locations across Southern California  Maintained positive client relations with agency staff, elected officials, and ensured the highest customer service standards were met while maintaining projects within budget  Renegotiated agency and vendor contracts to enact updated and renewed costs, reduced personnel costs and overhead, and streamlined business processes  Oversaw subordinate managers, ensured all projects were operating efficiently, and developed policies and procedures to ensure high quality operations Specialized Transportation Consulting, San Diego, CA, 2011 to 2012 Senior Transportation Consultant
 Audited public transit contracts to maximize efficiencies and service improvements  Completed community transportation service and design  Assisted agencies with maximizing federal and state cost recovery efforts  Provided specialized transportation planning and marketing programs for clients  Responsible for the development of an employee policies and procedures handbook Docusign Envelope ID: 6A6BF070-7636-4D4B-8B71-AFDCE093F91A

Scott Transue
Regional Vice President
Experience (continued) North County Transit District (NCTD), Oceanside, CA, 2010 to 2011 Manager, Service Quality and Accessibility
 Developed goals and objectives for subordinate staff, as well as annual and capital improvement project budgets
 Wrote reports, correspondence, and operating procedures for division staff, as well as reviewed, analyzed, and produced statistical data and reports  Supervised various staff, performed evaluations, interviewed and hired new staff, and was responsible for Federal ADA and Title VI Compliance  Developed project management plans and schedules for contracts and consultants  Transitioned the agency’s paratransit service from a turnkey model to a brokered coordinated system utilizing existing community providers San Diego Metropolitan Transit System (MTS), San Diego, CA, 2002 to 2010 Transit Operations Specialist/ADA Manager
 Managed on-time performance to capture relevant data on fixed route services  Redesigned the agency’s ADA Paratransit Program resulting in large cost efficiencies  Created and monitored transit operating division budgets  Directed and managed overall operations of assigned transit services Education
San Diego University, San Diego, CA
Bachelor of Science, Social Science
Pepperdine University, School of Business and Management, Malibu, CA Transit and Paratransit Management Certificate Program
National Transit Institute, Rutgers, NJ
Managing the Costs of ADA Paratransit Seminar, Understanding ADA Seminar Federal Transit Administration, Washington, D.C.

FTA Civil Rights Seminar

Additional Information
 Member of Accessible Services Advisory Committee
 Member of Social Service Transportation Advisory Committee  Member of Council on Access and Mobility
Docusign Envelope ID: 6A6BF070-7636-4D4B-8B71-AFDCE093F91A

Diana Do
Regional Director, Operations (West Coast)
Experience
MTM Transit, San Carlos, CA, 2017 to Present
Regional Director, Operations (West Coast), 2023 to Present  Oversees and compliance of all designated regional area Transit and Paratransit Eligibility contracts.
 Leads, motivates, guides, directs, and evaluates the work of leaders including General Managers (GM), Program Managers, Operations Personnel, and Safety/Training leaders.
 Acts as a liaison between MTM Transit and external stakeholders to educate on MTM Transit services and ensure customer satisfaction.
 Supports and manages new business development of assigned region and management of implementations.
 Provides training and professional development to staff, which includes monthly budget reviews and strategies.

Program Manager, 2018 to 2023
 Established processes to ensure overall contract compliance and consistency in daily operations of Eligibility Centers.
 Successfully managed the implementation of a new program that resulted in a minimum monthly average of 20% net income.
 Demonstrated the ability to build trust quickly by addressing key concerns and delivering sustainable methods to ensure dependable service quality, resulting in continual client confidence.
 Maximized program profitability and quality by expanding team capability through continual coaching and empowerment.
 Efficaciously cultivated long-term relationships with key stakeholders by providing reliable Subject Matter expertise, resulting in a renewal of contract option years.

Supervisor, Mobility Assessment Evaluator, LA Access Eligibility Center, 2018  Supervised a team of Mobility Assessment Evaluators, Administrative Assistants, and Eligibility Assistants
 Confirmed current ADA regulations were reflected in eligibility determinations  Processed applications and in-person evaluation documents in Rider360 and Salesforce  Managed mail delivery with drops ranging from 1,000 to 3000 pieces per week  Assisted Project Manager by creating reports and providing ongoing MAE training  Monitored quality assurance for determinations, including timeliness standards Docusign Envelope ID: 6A6BF070-7636-4D4B-8B71-AFDCE093F91A

Diana Do
Regional Director, Operations (West Coast)
Experience (continued)
Mobility Assessment Evaluator, LA Access Eligibility Center, 2017 to 2018  Conducted eligibility assessments evaluations using FACTS, MMSE, Physical Mobility Assessments, and specified Supplemental Interview Guide  Determined most appropriate mode of transportation based on rider application and abilities  Documented and reported assessments accurately into Salesforce and Rider360  Provided travel training recommendations and transit system education  Supported new implementations as trainer/mentor and subject matter expert  Completed quality assurance checks on all assessment reports prior to submission  Maintained extensive knowledge of Title VII and ADA requirements  Processed customer complaints in Rider360 as assigned Southland Transit, Inc., El Monte, CA, 2009 to 2017
Project Manager, 2015 to 2017
Administrative Assistant to the Director of Maintenance, 2014 to 2015 Administrative Assistant/Interim Office Manager, 2009 to 2014 Education
California State University Los Angeles, Los Angeles, CA Business Administration – Human Resources; Political Science – Public Administration The California School of Culinary Arts, Pasadena, CA
Associates of Occupational Studies: Hospitality and Restaurant Management Certifications
University of the Pacific, Eberhardt School of Business, Stockton, CA Transit and Paratransit Management Certificate
Docusign Envelope ID: 6A6BF070-7636-4D4B-8B71-AFDCE093F91A

Matt Weinberg
Senior Director, Safety Administration

Experience
MTM Transit, Lake St. Louis, MO, 2021 to Present
Senior Director, Safety Administration, 2023 to Present  Responsible for standardizing training and safety culture programs for MTM Transit staff to maintain high quality, safe transportation nationwide  Coordinates with local General/Project Managers to meet all safety goals and directives, training objectives, and ensure compliance with local, state, and federal regulations  Implements training programs and successfully leads accident and injury avoidance initiatives and safety processes to reduce accident rates and liability costs  Responsible for developing and implementing company-wide safety and training standard operating procedures and leads Executive Safety Committee  Oversees, updates, and enforces Safety Management System, System Safety Program Plan, Public Transportation Agency Safety Plan, Emergency Preparedness Plan, and Drug and Alcohol Policies
Director, Safety Administration, 2021 to 2023
 Coordinated with executive team and local general/project managers to direct and meet all safety goals and directives, training objectives, and compliance with local, state, and federal regulations
 Implemented training programs and successfully led operations to reduce accident rates and liability costs
 Led accident and injury avoidance initiatives and safety processes  Responsible for developing and implementing company-wide safety and training standard operating procedures and leads Executive Safety Committee Transdev North America, Lombard, IL, 2017 to 2021
National Safety Director
 Responsible for overall regulatory compliance, training, and safety processes and procedures for Transdev locations across the United States  Worked with individual locations to ensure consistent and thorough implementation of safety and security processes, policies, and programs to mitigate risks and potential company liability, including collision/injury management and reduction  Monitored safety process execution for compliance with company requirements/ expectations and provided guidance and direction as needed  Ensured contract compliance with all applicable federal (DOT, OSHA, DHS), state, local, and company regulations
Docusign Envelope ID: 6A6BF070-7636-4D4B-8B71-AFDCE093F91A

Matt Weinberg
Senior Director, Safety Administration
Experience (continued) National Express, LLC, Lisle, IL, 2015 to 2017 Area Director of Safety
 Responsible for company safety program for school and transit route contracts in Illinois, Iowa, Minnesota, Missouri, and Wisconsin; including several with union representation  Played key role in implementing and integrating safety programs into purchased or acquired companies
 Conducted onboarding and training sessions for new General Managers and Safety/ Training Supervisors
 Obtained certificate in Safety and Health Management through the Institute for Health and Safety Management
Saia, Inc., Johns Creek, GA, 2013 to 2015
Regional Safety Manager
 Managed a region consisting of 11 terminals across Illinois, Indiana, Iowa, Minnesota, and Wisconsin
 Ensured compliance with OSHA, DOT, and company policies and procedures when traveling to terminals within the region
 Led regular safety meeting discussing various topics such as accident/injury/spill prevention, hazardous materials processes in accordance with DOT regulations and company policy, safe driving, etc.
 Conducted safety audits and reviewed and coached events recorded by on board camera Advanced Disposal Services, Inc., Batavia, IL, 2011 to 2013 Route Manager
Veolia Transportation, Lombard, IL, 2003 to 2006; 2007 to 2011 Assistant General Manager, Master Instructor, 2007 to 2011 Route Supervisor, 2003 to 2006
Pace Suburban Bus, Chicago, IL, 2006 to 2007
Operations Administrator for Chicago ADA Services
Education
Northern Illinois University, DeKalb, IL
Bachelor of Science, Geography
Docusign Envelope ID: 6A6BF070-7636-4D4B-8B71-AFDCE093F91A

Joe Sullivan
Regional Director of Maintenance
Experience
MTM Transit, Lake St. Louis, MO, 2017 to Present
Regional Director of Maintenance
 Provides oversight and quality assurance for all aspects of MTM Transit’s maintenance functions across operations in the Western region of the country  Assists General Managers, Maintenance Managers, and Operations Managers in ensuring proper maintenance of vehicles through on-time preventative maintenance inspections, repairs, and body work, which are completed by our internal maintenance employees and using cost effective, quality vendors
 Works with vehicle and vehicle equipment manufacturers to provide training and resources for mechanics and maintenance staff on new vehicle technologies MV Transportation, 2008 to 2017
Fleet Maintenance Manager, Elk Grove, CA, 2012 to 2017
 Managed day-to-day maintenance responsibilities of fixed route and paratransit operations, including 78 vehicles with compressed natural gas and gasoline engines  Provided oversight to all maintenance activities to ensure contractual requirements were achieved in a safe, healthy, and environmentally conscious manner  Worked on special projects for MV’s Western region and mentored new fleet managers  Received the American Public Works Association Fleet Manager of the Year Award in 2015 for the Sacramento region
Lead Technician, South Lake Tahoe, CA, 2010 to 2012
 Led a team of maintenance technicians, managed scheduled preventative maintenance programs, delegated repairs, built and led maintenance campaigns, and preformed emergency service repairs
 Maintained a fleet of diesel, gasoline, and CNG transit vehicles, ensured clients’ needs were met, and maintained a shop that was compliant with local and federal regulations  Used the TEAM computer-based maintenance scheduling and management system to track maintenance
 Tracked and controlled spare parts inventories and worked with parts vendors to maintain an appropriate parts inventory
 Provided mechanical support to several other MV-operated facilities Docusign Envelope ID: 6A6BF070-7636-4D4B-8B71-AFDCE093F91A

Joe Sullivan
Regional Director of Maintenance
Experience (continued) Heavy Duty Transit Bus/Light Truck Technician, South Lake Tahoe, CA, 2008 to 2010  Serviced, repaired, and maintained a fleet of diesel, gas, and CNG transit vehicles, including busses from the following manufacturers: Orion, New Flyer, Nabbi, Gillig, Blue Bird, MCI, and Chance
 Maintained Ford and Chevy Cutaway vehicles
 Received extensive training and used I/O controls multiplex electrical systems Education
Las Positas College, Livermore, CA
General Education and Welding MIG/TIG/ARC/Automotive Classes Certifications
 Automotive Service Excellence (ASE), Master Certification, June 2011  EPA 608 Test Proctor, March 2017
 Vansco Electrical, October 2016
 MAN Axle, October 2016
 Amerex, September 2016
 Detroit 50G, December 2015
 Genfare, June 2015
 National Transit Institute, December 2012
 CHP Inspection, March 2012
 Bendex Brake Systems, March 2012
 EPA Section 608 Refrigeration Systems, March 2011
 Intermotive Interlock and Fast Idle Systems, March 2010  MGM Brake Systems, March 2010
 EPA Section 609 Refrigerant Recovery and Recycling, March 2010  CNG Fuel Systems, January 2010
 Starrs, Ford Motor Co., July 2009
Docusign Envelope ID: 6A6BF070-7636-4D4B-8B71-AFDCE093F91A

John Seber
Senior Director of Maintenance
Experience
MTM Transit, Lake St. Louis, MO, 2022 to Present
Senior Director of Maintenance
 Provides oversight and quality assurance for all aspects of MTM Transit’s maintenance functions across the country
 Assists General Managers, Maintenance Managers, and Operations Managers in ensuring proper maintenance of vehicles through on-time preventative maintenance inspections, repairs, and body work
 Works with vehicle and vehicle equipment manufacturers to provide training and resources for mechanics and maintenance staff on new vehicle technologies  Optimizes maintenance efficiency and productivity to ensure a safe transportation experience for our passengers
Central Indiana Regional Transportation Authority (CIRTA), 2020 to 2022 Executive Director
 Oversaw multiple passenger transportation programs, including workforce connect, community connector, van pools and shared rides, and My Freedom voucher program  Developed and implemented new county routes that increased services and revenue by 100% within the first six months
 Developed five-year strategic plan, encompassing 10 county electric bus study, an expansion for current van pool program, and growth plans for work force connectors and staffing
 Identified and developed resolutions/processes and standard operating procedures National Express Transit, 2018 to 2020
Director of Maintenance
 Oversaw maintenance of 100 divisions, 14,000 vehicles (diesel, gas, electric, and CNG), and over $600 million in annual revenue
 Performed audits of fleet, facilities, safety, and contract compliance, and worked with the Department of Transportation (DOT) in vehicle compliancy  Worked with staff and leadership in reducing overall costs through planning, training, policies, and employee interaction
 Coordinated with outside vendors for contract-specific maintenance repairs Docusign Envelope ID: 6A6BF070-7636-4D4B-8B71-AFDCE093F91A

John Seber
Senior Director of Maintenance
Experience (continued) MV Transportation, Inc., 2014 to 2018 Director of Maintenance
 Responsible for fleet and facility management of multiple operational sites  Trained and aided in repair of transit buses, school buses, and general automotive  Provided oversight of Intelligent Transportation System (ITS) integration project  Responsible for performance monitoring and auditing of locations, to include audits of fleet, facilities, safety, and contract compliance
Greater Dayton Regional Transit Authority, 2013 to 2014 Chief Maintenance Officer (CMO)
 Responsible for facility maintenance, inventory, trolley infrastructure, and fleet maintenance of over 300 buses (diesel, gas, and electric), paratransit vehicles, and trollies  Oversaw 107 union employees and 10 managers/supervisors  Prepared and monitored $63 million budget as well as spending of Federal Transit Administration (FTA) funds
 Researched and developed scopes of work for new technologies ranging from cameras, AVM, electric vehicles, and facility build out projects  Developed and implemented new policies for preventative maintenance that established proactive measures to reduce premature failure MV Transportation, Inc., 2007 to 2013
Vice President of Maintenance - Central and East, 2010 to 2013  Oversaw 86 divisions, 7,000 vehicles, and $500 million in annual revenue  Served as project lead on 55 new location implementations, to include establishing site and facility, setting up facility and maintenance shop, hiring and training staff, and establishing vehicle maintenance and safety programs
 Developed employees through onsite training and mentoring, ranging from direct regional support staff to location-specific team members  Established in-house warranty provider status allowing for internal warranty repairs to be completed on site
Director of Vehicle Maintenance – Midwest and East Coast, 2007 to 2009  Oversaw maintenance of 26 divisions, 1,200 vehicles, and over $240 million in annual revenue
 Trained and aided in repair of transit buses, school buses, and general automotive  Performed audits of fleet, facilities, safety, and contract compliance  Developed and implemented policies and procedures and prepared budgets Docusign Envelope ID: 6A6BF070-7636-4D4B-8B71-AFDCE093F91A

John Seber
Senior Director of Maintenance
Experience (continued)
Transportation Concepts, Inc., 2005 to 2007
Vice President of Vehicle and Facilities Maintenance
 Responsible for 16 locations and $60 million in annual revenue  Assisted with startup ventures, training, facility modifications, and maintenance  Prepared and negotiated new contract ventures to grow the company’s transit division  Performed audits of all locations including fleet, facilities, safety, staff, and contract compliance, and worked with CHP in fleet standards and inspections MV Transportation, Inc., 2001 to 2005
Director of Vehicle Maintenance – Midwest and East Coast, 2001 to 2005  Oversaw 43 divisions, 3,200 vehicles, and over $280 million in annual revenue  Helped to increase total new business from 24 locations to 105 locations over four years, increasing annual revenue from $26 million to $460 million  Worked with staff and leadership in reducing overall costs through planning, training, policies, and employee interaction
Indianapolis Public Transportation Corporation (IndyGo), 1993 to 2001 Director of Vehicle and Facility Maintenance
Tri-State Cardinal Coach, 1991 to 1993
Supervisor of Maintenance
Paul Heuring Ford, Hobart, IN, 1989 to 1991
Certified Technician
Kerr Neilson Buick, Gary, IN, 1987 to 1989
Technician
Education
Indiana Business College, 2000
Associates of Applied Science
International Correspondence School, 1997
Technical Degree
Lincoln Technical Institute, 1987
Technical Degree
Docusign Envelope ID: 6A6BF070-7636-4D4B-8B71-AFDCE093F91A

Ed Overn
Senior Vice President of Operations
Experience
MTM Transit, Lake St. Louis, MO, 2019 to Present
Senior Vice President of Operations
 Oversees all MTM Transit operations across the country in collaboration with Regional Vice Presidents
 Works in collaboration with clients and local management teams to increase service efficiency, ensure contractual compliance, and support ongoing growth  Leads a team of direct and non-direct reports to ensure that business outcomes and contract goals are defined and met
 Keeps abreast of changes to transit program rules, regulations, and policies, and works with clients to acquire a thorough understanding of their local climates and issues  Follows through with service issues, troubleshooting problems, and concerns in a timely and professional manner
Transdev North America, Lombard, IL, 2017 to 2019
Regional Vice President
 Provided direct operational oversight and leadership to 19 assigned fixed route, paratransit, and university shuttle bus revenue contracts throughout the South Eastern United States, which totaled approximately $115 million in annual revenue with a total of 5,700 employees
 Directly managed 5 support team Director level employees with oversight of Safety, Maintenance, Labor, Finance, and Human Resources
 Consistently analyzed KPI’s and P&L performance trends to optimize income  Successfully drove positive financial results, not only through increased revenue, but by driving efficiencies in existing operations thus realizing year over PTI improvement  Partnered with the Business Development Team to successfully develop operational strategies to obtain new and renewal business through client interaction, price-model development, interview preparation, and presentation, and to create realistic operational startup plans and execute them
 Initiated and managed contract startups as well as developed solutions to issues independently with minimal if any outside support
Docusign Envelope ID: 6A6BF070-7636-4D4B-8B71-AFDCE093F91A

Ed Overn
Senior Vice President of Operations
Experience (continued)
MV Transportation, Dallas, TX, 2005 to 2017
Regional Vice President
 Provided direct operational oversight and leadership to 24 assigned fixed route, paratransit, and shuttle bus revenue contract managers throughout the Central and Eastern United States, which totaled approximately $70 million in annual revenue with a total of 4,500 employees
 Recruited, developed, managed, motivated, and nurtured successful transit leaders to advance their scope of responsibility
 Consistently analyzed KPI’s and P&L performance trends to optimize income  Successfully drove positive financial results, not only through increased revenue, but by driving efficiencies in existing operations thus realizing year over PTI improvement  Built and retained solid client relationships by meeting with exceeding contract parameters, fixing problems quickly and appropriately, and communicating efficiently  Managed all aspects of labor relations and negotiations with multiple labor partners  Partnered with the Business Development Team to successfully develop operational strategies to obtain new and renewal business through client interaction, price-model development, interview preparation, and presentation, and to create realistic operational startup plans and execute them
 Focused on Safety with consistent annual improvement in AFR/IFR Laidlaw Transit Services, Overland Park, KS, 2001 to 2005 Area District Manager
 Provided direct operational oversight and hands on leadership to 18 fixed route and paratransit bus contracts throughout the Midwest and Northeastern United States  Consistently exceeded annual performance objectives
 Responsible for development and adherence of a $38 million operating budget in FY05, as well as for all aspects of client relations and revenue contract negotiation  Developed pricing models, interview presentations, and operational startup plans for renewal and prospective new business resulting in revenue growth of approximately 11% in FY04
 Analyzed KPI results to manage expenses and optimize PTI  Managed all aspects of labor relations and negotiations with multiple union locals

Docusign Envelope ID: 6A6BF070-7636-4D4B-8B71-AFDCE093F91A

Ed Overn
Senior Vice President of Operations
Experience (continued) Laidlaw Transit Services, Somerville, MA, 1999 to 2001 General Manager
 Operational responsibility and oversight of $18 million annual ADA paratransit operation under contract to the Massachusetts Bay Transportation Authority with 400 employees
 Managed all facets of operation inclusive of Scheduling, Dispatch, Reservations, Maintenance, Safety, and Direct and Subcontracted service delivery, which provided more than 750,000 scheduled annual passenger trips throughout Metro Boston  Analyzed KPI results to manage expenses and optimize PTI  Reduced operating expenses by 38% by finding efficiencies in scheduling, purchasing, and maintenance while replacing 60% of the staff and establishing adherence with National Accounts
 Directed all aspects of labor relations and negotiations with Teamsters Local #25  Established a reputation as a “doer” and was invited to travel to multiple Laidlaw Transit operating locations throughout the United States to provide operational guidance and fix poorly performing and managed operations
American Medical Response, Natick, MA, 1997 to 1999
Regional Director
Med Trans New England, Wakefield, MA, 1995 to 1997
Vice President of Operations/Support Services
Care Ambulance Service, Care Line New England Merrimack Valley (acquired by Med Trans New England), Lawrence, MA, 1990 to 1995
General Manager
Care Ambulance Service, Lowell, MA, 1984 to 1990
Field Supervisor, Emergency Technician, Paratransit Operator, EMS Dispatcher

Education
Northern Essex Community College, Haverhill, MA
Bachelor of Criminal Justice
Docusign Envelope ID: 6A6BF070-7636-4D4B-8B71-AFDCE093F91A

Brian Balogh
Chief Operating Officer of Transit

Experience
MTM Transit, Lake St. Louis, MO, 2015 to Present
Chief Operating Officer of Transit, 2018 to Present
 Directs all operations serving the transit market, including functional ADA eligibility assessments and travel training, quality assurance, paratransit operations, brokerage and subcontracted service, ADA call centers, and fixed route operations, including maintenance, reservations, scheduling and dispatch, and safety  Collaborates with Regional Vice Presidents to ensure MTM Transit’s performance aligns with all operational and financial contract requirements  Regularly monitors contract reporting to ensure contract compliance and quality  Leads an executive leadership team who provide direction and support to general managers and program directors throughout the nation
Vice President of Transit, 2016 to 2018
 Ensured contract and budget compliance and developed plans to meet or exceed financial goals of the client, such as increasing productivity due to increased efficiency, improvements in on-time performance, rider satisfaction, safety metrics, and maintenance reliability
 Worked in collaboration with operations, support departments, and transportation providers to ensure the most appropriate and cost-effective delivery of transportation services
 Monitored and managed implementations to ensure seamless transitions and uninterrupted service provision
 Assessed customer satisfaction to improve each operation Director of Operations, 2015 to 2016
 Directed and coordinated the day-to-day activities of multiple internal departments  Coordinated efforts of Community Outreach and Logistics team members and provided performance-driving leadership to Network Representatives to ensure success of multiload efforts, provider/facility alignment, network adequacy, and superior service delivery, improving transportation quality and reducing costs
 Led Community Outreach team members to leverage facility outreach for better understanding of provider performance
Docusign Envelope ID: 6A6BF070-7636-4D4B-8B71-AFDCE093F91A

Brian Balogh
Chief Operating Officer of Transit
Experience (continued) MV Transportation, Chicago, IL, 2007 to 2015 Senior Regional Vice President
 Increased profitability of divisions through efficiency and organization with revenue exceeding $85 million annually
 Maintained complete oversight and maintenance of fleets totaling 650 vehicles, as well as direct oversight of 20 divisions and over 24 individual contracts across five Midwest states providing paratransit, fixed route, and shuttle services  Led development of division-level management and staff, as well as corporate support teams totaling more than 1,500 employees
Greyhound Lines, Inc., Chicago, IL, 1992 to 2007
District Manager, Field Operations
 Oversaw performance of nine terminal facilities, 110 commission agencies, 350 drivers, and 225 terminal employees in a 14-state area
 Recruited, selected, trained, and mentored managers and supervisors  Developed initiatives to increase sales and reduce controllable expenses

Education
Cleveland State University, Cleveland, OH
Bachelor’s Degree in Business Administration/Management and Labor Relations  James J. Nance College of Business

Awards
 Named 2011 Regional Vice President of the year
 Nominated to the American Public Transportation Association (APTA) Leadership Program in 2012
 Active member of APTA and CALACT
Docusign Envelope ID: 6A6BF070-7636-4D4B-8B71-AFDCE093F91A

Alaina Maciá
President and Chief Executive Officer (CEO)

Experience
Alaina is a visionary leader in the healthcare and transit industries, and she is passionate about reducing barriers to community and healthcare services through efficient transportation program design. Alaina is aligned with client goals and serves as an executive liaison for all contractual and operational matters. She is keenly aware that good structure and process delivers reliable and efficient services to all stakeholders, and she promotes this key tenet throughout MTM Transit.

MTM Transit, Lake St. Louis, MO, 2009 to Present
President and CEO
 Oversees all operational, technological, and support departments  Recruits high quality, industry-leading executives to work at MTM Transit, bringing successful practices with them
 Leads efforts to analyze and streamline current operational processes to enhance efficiency and scalability of operations
 Ensures MTM Transit meets contract deliverables by reviewing company-wide key performance indicators that drive the desired contract outcomes and requirements  Focuses on delivering an enhanced rider experience by hiring the right people, ensuring reliable and efficient processes, and delivering accessible and efficient technology MTM, Inc., Lake St. Louis, MO, 2003 to Present
President and CEO
 Oversaw MTM’s growth from a $30 million company to an organization generating over $1 billion in revenue annually
 Restructured organization personnel and physical locations to create higher efficiency and increase productivity, reducing the administrative cost of handling transportation services by over 50%
 Drives MTM to continually improve and generate significant savings, generally between 10 to 25% over previous costs
 Identifies technology strategy to enhance user experience through mobile ready application and portals driving more than 5% of interactions to the web, mobile application, or IVR application

Docusign Envelope ID: 6A6BF070-7636-4D4B-8B71-AFDCE093F91A

Alaina Maciá
President and Chief Executive Officer (CEO)
Education
Olin School of Business, Washington University, St. Louis, MO Master of Business Administration
 Emphasis in corporate strategy and finance
 Member of Delta Gamma Sigma (top 20% of class)
School of Engineering and Applied Science, Washington University, St. Louis, MO Bachelor of Science in Biological Engineering, emphasis in Environmental Engineering  Missouri Bright Flight and Academic Scholarship to Washington University

Additional Information
 Member of the Washington Institute for Public Health National Council  Member of the Young Presidents’ Organization (YPO), a network of the world’s most influential and innovative business leaders
 Sits on the St. Louis Regional Business Council, Co-Chairs Workforce Development Committee
 St. Louis Business Journal 40 Under 40 Hall of Fame Award, 2020  St. Louis Business Journal Technology Executives of the Year List, 2018  Mass Transit Magazine 40 Under 40 Award, 2014
 Ernst & Young Entrepreneur of the Year Award, 2014
 St. Louis Business Journal 40 Most Influential Business Women List, 2012  St. Louis Business Journal 40 Under 40 Award, 2011
 St. Louis Business Journal 30 Under 30 Award, 2004
Docusign Envelope ID: 6A6BF070-7636-4D4B-8B71-AFDCE093F91A

APPROVED AS TO FORM AND LEGALITY
CITY ATTORNEY’S OFFICE

TRACY CITY COUNCIL
RESOLUTION NO.
1) Approving a three-year professional services agreement with MTM Transit, LLC, for operating services relating to the City of Tracy’s TRACER Public Transit System with a total not to exceed amount of $19,428,394; and 2) Authorizing an administrative extension for an additional one-year contingent upon satisfactory performance in an amount not to exceed $7,249,160
WHEREAS, since July 2001, the City of Tracy has contracted for operation of the TRACER Public Transit System; and
WHEREAS, a Request for Proposals was issued on February 7, 2025, and four proposals were received by the established deadline; and
WHEREAS, all four proposals were scored, and the proposers interviewed by an evaluation committee; and
WHEREAS, staff have determined that MTM Transit, LLC have demonstrated to be the best qualified and most responsible proposer who best meets the City's needs by demonstrating the competence and professional qualifications necessary for the satisfactory performance of the required services; and
WHEREAS, staff recommends awarding a Professional Services Agreement to MTM Transit, LLC; and
NOW, THEREFORE, be it
RESOLVED: That the City Council of the City of Tracy hereby approves the three-year Professional Services Agreement with MTM Transit, LLC attached hereto as Attachment 1, for operating services relating to the City of Tracy’s TRACER Public Transit System with a total not to exceed amount of $19,428,394; be it
FURTHER RESOLVED: That the City council of the City of Tracy hereby authorizes an administrative extension for an additional one-year contingent upon satisfactory performance in an amount not to exceed $7,249,160.

Resolution 2025-

* * * * * * * * * * * * * *
The foregoing Resolution 2025-_____was adopted by the Tracy City Council on the 3 rd day
of June 2025, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTENTION: COUNCIL MEMBERS:

DAN ARRIOLA
Mayor of the City of Tracy, California
ATTEST:________________________
APRIL B.A. QUINTANILLA
City Clerk and Clerk of the Council of the
City of Tracy, California
Exhibits:
1: Professional Services Agreement with MTM Transit, LLC

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ITEM NO. 6

COUNCIL AGENDA ITEM
FOR JULY 7, 2025
Prepared By: Jaylen French, City Manager
Date: June 18, 2025
Subject: Belleterra Estates Landscape Maintenance District No. 01-1, Consideration of Initiating Proceedings for the Levy and Collection of Assessments for Fiscal Year 2025-26
Recommendation:

Adopt the: (1) Resolution Initiating Proceedings for the Annual Levy of Assessments and Ordering the Preparation of Engineer’s Reports for the Belleterra Estates Landscape Maintenance District No. 01-1 for Fiscal Year 2025-26; (2) Resolution for Preliminary Approval of the Engineer’s Report Regarding the Proposed Levy and Collection of Assessments for the Belleterra Estates Landscape Maintenance District No. 01-1 for Fiscal Year 2025-26; and (3) Resolution Declaring the Intention to Levy and Collect the Annual Assessments for the Belleterra Estates Landscape Maintenance District No. 01-1 for Fiscal Year 2025-26.

Strategic Plan Priority:

This action supports Escalon 2025-26 Strategic Plan Priority #2, Fiscal Stability. Landscape and Lighting Districts (LLDs) provide dedicated revenue for the ongoing maintenance, repair, and replacement of infrastructure and amenities in their respective neighborhoods throughout the City.

Background and Discussion:

This assessment funds the costs of electricity, water, and maintenance associated with landscaping, trees, lighting, irrigation, drainage systems, pedestrian and bicycle paths, playground equipment and other public amenities within the Belleterra Estates development. The assessment district was established in 2001.

The Fiscal Year (FY) 2025-26 Engineer’s Report includes updated language in the sections for Playground Equipment & Amenities, Fences, and Masonry Walls (see attached Exhibit 2). The Engineer’s Report also contains updated maintenance and replacement cost estimates to reflect the LMD’s current costs.

For FY 2025-26, staff has reevaluated and updated the actual costs of services to the LMD in establishing the proposed assessment rate. The assessment per single-family residential unit is

proposed at $662.12, an increase of $126.18 from the prior year’s assessment of $535.94.

In FY 2025-26, the collection of the Capital Replacement Reserve Fund is proposed for the cost of replacing the playground equipment and amenities within the LMD which, due to the costs of replacement, cannot be conveniently raised from a single annual assessment. The purpose of the fund is to gradually collect and accumulate the revenue required to complete all necessary capital replacement ensuring the safe and continued operation of public improvementsfor property owners to use and enjoy. The fund also helps to ensure the ability to replace the equipment at the time replacement is needed and not having to close the park until funds have been collected, which could take several years to raise.

The LMD’s maximum allowable assessment for FY 2025-26 is $697.15 and is authorized to be increased 3% annually. The City has levied an annual assessment at a rate less than the maximum authorized assessment. For Fiscal Year 2025-26, the proposed assessment is $662.12, which is approximately 5% lower than the maximum assessment permitted. The City Council retains the discretion to adopt a lower assessment than the proposed assessment.

Assessment History by Fiscal Year
FY 21/22 FY 22/23 FY 23/24 FY 24/25 Proposed FY
25/26
Assessment $ 475.08 $ 480.52 $ 494.92 $ 535.94 $ 662.12 Change $ $ 163.44 $ 5.44 $ 14.40 $ 41.02 $ 126.18
Change % 52% 1% 3% 8% 24%
Comparison of Maximum and Proposed Assessment
Maximum
Assessment
Proposed
FY 25/26
Assessment
$ Below
Max
% Below
Max
Belleterra $ 697.15 $ 662.12 $ 35.03 5%
Further details and financial analysis are available in the attached Engineer’s Report for FY 2025-26.

Fiscal Impact:

After council approval of the three attached resolutions, a public hearing will be held on July 21, 2025 to approve the FY 2025-26 budget for the Belleterra Estates Landscape Maintenance District No. 01-1 and approve the associated property assessments.

Exhibits:

1. Engineer’s Report FY 2025-26 for Belleterra Estates Landscape Maintenance District No. 01-1

2. Redline Excerpt of Engineer’s Report

3. Resolution Initiating Proceedings for the Annual Levy of Assessments and Ordering the Preparation of Engineer’s Reports for the Belleterra Estates Landscape Maintenance District No. 01-1 for Fiscal Year 2025-26

4. Resolution for Preliminary Approval of the Engineer’s Report Regarding the Proposed Levy and Collection of Assessments for the Belleterra Estates Landscape Maintenance District No. 01-1 for Fiscal Year 2025-26

5. Resolution Declaring the Intention to Levy and Collect the Annual Assessments for the Belleterra Estates Landscape Maintenance District No. 01-1 for Fiscal Year 2025-26

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CITY OF ESCALON
FINAL ENGINEER’S REPORT
FISCAL YEAR 2025-26

BELLETERRA ESTATES LANDSCAPE

MAINTENANCE DISTRICT
JUNE 2025

PREPARED BY
Harris & Associates
1401 Willow Pass Road, Suite 500
Concord, CA 94520
www.weareharris.com
EXHIBIT 1

Engineer’s Report
Belleterra Estates Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26

TABLE OF CONTENTS
STATEMENT OF ASSESSMENT ENGINEER….……………………………………………………………..1 PART 1 – PLANS AND SPECIFICATIONS……………………………………………………………………..3 PART 2 – ESTIMATE OF COSTS………………………………………………………………………………….5 PART 3 – ASSESSMENT DIAGRAM…………………………………………………………………………….9 PART 4 – METHOD OF APPORTIONMENT………………………………………………………………..10 APPENDIX A – ASSESSMENT ROLL…………………………………………………………………………..15 APPENDIX B – DISTRICT DIAGRAM………….……………………………………………………………...20 APPENDIX C – IMPROVEMENT MAP……….……………………………………………………………...21

Engineer’s Report
Belleterra Estates Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26
1 STATEMENT OF ASSESSMENT ENGINEER
AGENCY: CITY OF ESCALON
PROJECT: BELLETERRA ESTATES LANDSCAPE MAINTENANCE DISTRICT TO: THE CITY COUNCIL

CITY OF ESCALON

STATE OF CALIFORNIA
ENGINEER’S REPORT FOR FISCAL YEAR 2025-26
The preparation of this Annual Engineer’s Report (“Report”) is in conformance with the obligation of the City Council, for the Belleterra Estates Landscape Maintenance District, to provide landscaping services upon each lot or parcel of land in the district in proportion to the estimated benefit to be received by each such lot or parcel of land for Fiscal Year 2025-

26. Pursuant to the Landscaping and Lighting Act of 1972 (Part 2 Division 15 of the Streets and Highways Code of the State of California, commencing with Section 22500) (“Act”), Article XIIID, Section 4(a) of the State of California Constitution, and in accordance with the City of Escalon’s Resolution being adopted by the City Council for the:

BELLETERRA ESTATES LANDSCAPE MAINTENANCE DISTRICT
(Hereinafter referred to as the “District”),
I, Alison Bouley, authorized representative of the District, the duly appointed Assessment Engineer submit the following Report which consists of the following four (4) parts and Appendices:

PART 1
Description of Improvements: This part provides a general description of improvements proposed to be maintained in the District. Plans and specifications for the improvements are on file with the City and are hereby made a part of this Report by reference.

PART 2
Estimate of Cost: This part contains the cost estimate of the proposed maintenance including incidental costs and expenses for Fiscal Year 2025-26.

PART 3
District Diagram: This part incorporates a Diagram of the District showing the external boundaries of the District. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the San Joaquin County Assessor for the year in which this Report was prepared and are incorporated by reference herein and made part of this Report. A copy of the District Diagram is included in Appendix B and has also been filed under separate cover with the office of the City Clerk.

Engineer’s Report
Belleterra Estates Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26
2 PART 4
Method of Apportionment of the Assessments: This part describes the method of apportionment of assessments, based upon parcel classification of land within the District in proportion to the estimated special benefits to be received. The costs and expenses of the District have been assessed upon the parcels of land within the boundaries of District pursuant to the initial methodology established at the time the District was formed. For particulars as to the identification of parcels, reference is made to the District Diagram.

Appendices
Appendix A – Assessment Roll
Appendix B – District Diagram
Appendix C – Improvement Map
In conclusion, it is my opinion that the costs and expenses of the District have been assessed to the lots and parcels within the boundaries of the District in proportion to the estimated benefits to be received by each lot or parcel from the services provided.

DATED this 19th day of May, 2025
___________________________________________
Alison Bouley, P.E., Assessment Engineer
R.C.E. No. C61383
Engineer of Work

Engineer’s Report
Belleterra Estates Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26
3 PART 1 – PLANS AND SPECIFICATIONS
The District was formed to provide a funding mechanism to ensure the ongoing operation, maintenance and servicing of certain landscape and lighting improvements within the boundaries of the District. Said improvements are detailed below under “Improvements and Services Provided”.

The Belleterra Estates Landscape Maintenance District is within the boundaries of the City and is located north of First Street, south of Yosemite Avenue, east of Brennan Avenue, and west of the Shadow Wood & Vintage Estates developments.

The District was formed in 2001 when the City Council adopted a Resolution Approving the Formation of the District. The sole property owner at that time was Lakemont, Belleterra, LLC.

The District is comprised of the residential development known as Belleterra Estates (Farinelli Ranch Units 1, 2 and 3) and consists of 143 assessable single family residential parcels. The plans and specifications for the improvements, showing the general nature, location, and the extent of the improvements, are on file in the office of the City Clerk and are incorporated herein by reference. Appendix C also contains an Improvement Map showing the location of the improvements.

Improvements and Services Provided
The following are the specific improvements maintained and serviced within the District:
• 1,000 linear feet of landscaping along the east side of Brennan Avenue and within the median. • General landscape maintenance along the Brennan Avenue frontage, the Farinelli Parkway greenbelt, and the Shadow Wood park/basin.
• Maintenance of playground equipment in Shadow Wood park/basin. • Utility costs for irrigation and lighting, including water and electricity. • Masonry wall maintenance including graffiti abatement along Brennan Avenue. • Street trees along interior streets of the tracts.
• Grounds keeping, irrigation and drainage system maintenance within the Shadow Wood park/basin. • Pedestrian and bike path maintenance.
• 44 streetlights located throughout the interior and exterior of the tract. • Masonry Wall along Shadow Wood Park.
• Wood fence along pedestrian path, between Brennan Avenue and Albert Lane. • Chain link fence between Shadow Wood Park and orchard. • Masonry wall along Brennan Avenue.
* The masonry wall along Shadow Wood Park, the wood fence along pedestrian path, the chain link fencing between Shadow Wood Park and the orchard, as well as the masonry wall along Brennan Avenue were all installed as part of the development and should have been included with the other improvement items at the time of formation. These items have been added to the list of Improvements for Fiscal Year 2025-26 to ensure continued maintenance and future replacement.

Engineer’s Report
Belleterra Estates Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26
4 The City replaced the rubber bark in Shadow Wood Park during the 2012 year. Grant funds were used to purchase the bark, but District funds were used for the labor costs to remove the old bark and replace it with the new.

The City of Escalon performed an LED streetlight head retrofit within the District during the 2013 year. This retrofit was budgeted at $20,200 and was funded by the existing District Operating Reserve Fund. Since the installation of the new lights there have been no lights replaced but there have been some photocells replaced. Reference is made to the plans and specifications for the improvements on file with the City and which are incorporated herein by reference.

The estimated budget for the annual maintenance and servicing of the improvements and the proportionate share of administration costs of the District have been prepared based on the estimated and recent historical costs of the District.

The 2025-26 District budget is shown on the following page.

Engineer’s Report
Belleterra Estates Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26
5 PART 2 – ESTIMATE OF COST
The estimated budget for the annual maintenance and servicing of the improvements and the proportionate share of administration costs of the District have been prepared based on the estimated and recent historical costs of the District.

The 2025-26 District budget is shown below.

ESTIMATE OF COST
1 The annual Capital Replacement cost of $3,000.00, as shown in the table above, represents an annual charge of approximately $20.98 per parcel/unit.

DIRECT COSTS
Utility – Water (based on prior year consumptions w/current rates) $26,951.00 Utility – Electricity (sprinkler timers, est. @ $55.08 per month) 661.00 Shadowood Park Annual Rubber Bark Replenishment 1,000.00 Sidewalk Repair from Street Tree Damage 1,000.00
Contract Services – Street Lights (44 lights @ avg. of $3.87 each – monthly) 2,047.00 Contract Services – Park Maintenance ($3,056.50 monthly contract & incidentals) (ex: tree maintenance, replacement, sprinkler repairs, etc.) Tree Maintenance Professional Expenses - 221-6850-329 2,511.00 Special Departmental Expenses - 221-6850-329 3,276.00
Professional Services – Public Works (inspection, repairs & maintenance) 2,217.00 Property Tax Charges - 221-6850-329 858.00
Direct Costs Sub-Total $77,199.00

CAPITAL REPLACEMENT COSTS
Annual collection to replace playground equipment (1) 3,000.00 Belleterra Comprehensive Street Tree Trimming 3,000.00
Masonry Wall Along Shadowood Park (312') 1,177.80
Wood Fence Along Pedestrian Path Between Brennan Ave. and Albert Ln. (158') 395.00 Chain Link Fence Between Shadow Wood Park and Orchard (325') 325.00 Masonry Wall Along Brennan Avenue (882') 3,519.40
Capital Replacement Costs Sub-Total $11,417.20

ADMINISTRATIVE COSTS
Professional Services – Engineer (Harris & Assoc. charge of $452.50 per quarter) $1,810.00 Public Mail Notice ($1.50 per parcel) $214.50
General Government Charge (City admin fee – See Descriptions below) 3,613.00 County Administration Fee (See Descriptions below) 429.00 Rounding Adjustment (to make an even penny for tax roll purposes) 0.46 Administrative Costs Sub-Total $6,066.96
SUBTOTAL DIRECT, CAPTIAL AND ADMINISTRATIVE COSTS $94,683.16 Operating Reserve Collection/(Reduction) 0.00
TOTAL BALANCE TO ASSESSMENT $94,683.16
Total Assessable Parcels/Units 143
ASSESSMENT PER PARCEL/EDU $662.12
36,678.00

Engineer’s Report
Belleterra Estates Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26
6 The 1972 Act requires that a special fund be set-up for the revenues and expenditures of the District. Funds raised by assessment shall be used only for the purpose as stated herein. A contribution to the District by the City may be made to reduce assessments or to fund costs which are greater than revenue from the assessments, as the City Council deems appropriate. Any balance or deficit remaining on July 1 must be carried over to the next fiscal year. Estimated beginning and ending fund balances for Fiscal Year 2025-26 are shown in the following table.

Section 22569 (a) of the 1972 Act allows the District assessments to “…include a reserve which shall not exceed the estimated costs of maintenance and servicing to December 10 of the fiscal year, or whenever the city expects to receive its apportionment of special assessments and tax collections from the county, whichever is later.”

DISTRICT FUND BALANCES
Description of Cost Estimate Items
The following are the specific improvements being maintained and serviced within the District:
• Utility – Water & Electricity: The costs to provide electrical and water utilities to the landscape and lighting improvements within the District.
• Contract Services – Streetlights: The contracting costs associated with the Modesto Irrigation District to provide electricity for illumination and maintenance of the streetlights and poles within the District. • Contract Services – Park Maintenance: The contracting costs associated with a landscaping contractor to perform the landscape maintenance duties associated with the improvements within the District. Incidentals may include but are not limited to, tree replacement, sprinkler replacement or repair, etc. The District had a change in the landscape contract in March 2021 that included a significate increase. The prior contract had been in place since the inception of the District (2001), with no increase. The monthly contract was increased again for Fiscal Year 2025-26 to $3,056.50.
• Professional Services – Public Works: Costs associated with individuals within the Public Works Department who contribute time to inspection of the improvements, necessary repairs and other maintenance. The City has budgeted to minor sidewalk repairs during the 2025-26 fiscal year, as shown on the budget page.

OPERATING FUND
Estimated Reserve Fund Beginning Balance as of July 1, 2025 $0.00 Operating Reserve Collection – Fiscal Year 2025-26 0.00 Interest Revenue 753.00
Estimated Reserve Fund Balance Ending June 30, 2026 $753.00

CAPITAL REPLACEMENT FUND
Capital Replacement Fund Balance as of July 1, 2025 $7,985.31 Capital Replacement Collections – Fiscal Year 2025-26 11,417.20 Interest Revenue 0.00
Estimated Capital Replacement Fund Balance Ending June 30, 2026 $19,402.51

Engineer’s Report
Belleterra Estates Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26
7 • Professional Services – Engineer: The contracting costs associated with hiring a company to manage and perform the annual administration duties of the District. These services include preparation of reports, resolutions, assessment rolls and budgets; preparation and placement of assessment amounts onto the County tax rolls; tracking and upkeep of the District database; answering questions for City staff and property owners; and finally, act as an expert resource in matters related to the District. • General Government Charge: Costs associated with individual City Staff and Management (City Clerk, City Council, City Manager, Finance Director, City Engineer, etc.) who contribute time to the annual administration and oversight of the District. This may include but is not limited to, preparation for and attendance of meetings, preparation and posting of public notices, budgeting, inspection, etc. This cost is calculated based on an allocation plan accepted by the City Council in June 2018, prepared by Clear Source Financial. • County Administration Fee: The County costs related to placement of the annual assessment charges onto the tax roll and the generation of annual tax bills related thereto. This charge is the lesser of $3.00 per parcel or 1% of the total levy amount submitted per District.
• Operating Reserve Collection/(Contribution): This item shows any collections which adds to the Operating Reserve Fund balance, or contributions made from the Operating Reserve Fund, to offset the annual budget. • Estimated Reserve Fund Balances: These items show the estimated Operating Reserve Fund amounts at the beginning and end of the fiscal year. The estimated ending balance reflects any collections or reductions from the estimated beginning balance.

Description of Capital Replacement Items
• Playground Equipment & Amenities: Funds collected on an annual basis for the eventual replacement of the playground equipment and/or amenities. This equipment has a finite life span and will require replacement after approximately 25 years. The equipment for this District was purchased in 2001. It has a current estimated replacement cost of $36,000. In the year 2026, the costs to replace the equipment will have increased by an estimated total of 4.0%. This percentage will be re-evaluated every ten years to determine if an adjustment to the annual collections is necessary. The cost was reevaluated in 2024 and based on a 2% annual inflator each year, the total estimated full replacement cost in 2026 is $37,454. • Masonry Wall at Shadow Wood Park: Funds collected on an annual basis for the eventual replacement of this masonry wall. The wall has a finite life span and will require replacement after approximately 50 years. The wall was installed as part of the development in 2001 and will likely need replacement within the next 30 years.

The replacement cost estimate is $62,400, in 2024 dollars. To account for inflation over the next thirty years, 2% has been added to the annual collection amount. In the year 2054, the costs to replace the equipment will have increased by an estimated 81.1%, based on a 2% annual inflator. This percentage will be re-evaluated occasionally to determine if an adjustment to the annual collections is necessary. The estimated full replacement cost in 2054 is estimated at $113,029.

Engineer’s Report
Belleterra Estates Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26
8 • Wood Fence: Funds collected on an annual basis for the eventual replacement of the wood fence between Brennan Avenue and Albert Lane. The fence has a finite life span and will require replacement after approximately 20 years. The was installed as part of the development in 2001 and will likely need replacement within the next few years. The replacement cost estimate is $7,900, in 2024 dollars. In the year 2026, the costs to replace the equipment will have increased by an estimated 4.0%, based on a 2% annual inflator. This percentage will be re-evaluated occasionally to determine if an adjustment to the annual collections is necessary. The estimated full replacement cost in 2026 is estimated at $8,219. • Chain Link Fence: Funds collected on an annual basis for the eventual replacement of the chain link fence between Shadow Wood Park and orchard. The fence has a finite life span and will require replacement after approximately 40 years. The was installed as part of the development in 2001 and will likely need replacement within the next 20 years. The replacement cost estimate is $9,750, in 2024 dollars. To account for inflation over the next twenty years, 2% annually has been added to the annual collection amount. In the year 2044, the costs to replace the equipment will have increased by an estimated 48.5%, based on a 2% annual inflator. This percentage will be re-evaluated occasionally to determine if an adjustment to the annual collections is necessary. The estimated full replacement cost in 2044 is $14,488. • Masonry Wall along Brennan Ave: Funds will be collected on an annual basis for the eventual replacement of this masonry wall. The wall has a finite life span and will require replacement after approximately 50 years. The wall was installed as part of the development in 2001 and will likely need replacement within the next 30 years.

The full replacement cost is estimated to be $176,400, in 2024 dollars. To account for inflation over the next thirty years, 2% has been added to the annual collection amount. In the year 2054, the costs to replace the equipment will have increased by an estimated 81.1%, based on a 2% annual inflator. This percentage will be re-evaluated occasionally to determine if an adjustment to the annual collections is necessary. The estimated full replacement cost in 2054 is estimated at $319,524.

Engineer’s Report
Belleterra Estates Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26
9 PART 3 – ASSESSMENT DIAGRAM
A diagram showing the exterior boundaries of the District and the lines and dimensions of each lot or parcel of land within the District has been submitted to the office of the City Clerk of the City of Escalon and is hereby made a part hereof by reference.

A copy of the assessment diagram for the District is included in Appendix B of this Report.

Engineer’s Report
Belleterra Estates Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26
10 PART 4 – METHOD OF APPORTIONMENT
General
Streets and Highways Code Section 22573 requires that maintenance assessments be levied according to benefit rather than according to assessed value. This section states:

The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.
— Streets and Highways Code Section 22573
Definitions from Streets and Highways Code:

Section 22525 “Improvement” means one or any combination of the following:
(a) Installation and planting of landscaping
(b) The installation and construction of statuary, fountains and other ornamental structures and facilities. (c) The installation and construction of public lighting facilities, including but not limited to traffic signals. (d) The installation or construction of any facilities which are appurtenant to any of the foregoing or which are necessary or convenient for the maintenance and servicing thereof, including, but not limited to grading, clearing, removal of debris, the installation or construction of curbs, gutters, sidewalks, walls or paving, or water, irrigation, drai9nage or electrical facilities.
(e) The installation of parks or recreational improvements, including, but not limited to all of the following:
• Land preparation such as grading, leveling, cutting and filling, sod, landscaping, irrigation systems, sidewalks and drainage
• Lights, playground equipment, play courts and public restrooms (f) The maintenance or servicing or both, of any of the foregoing, and any improvement authorized by subdivision (i). (g) The acquisition of land for park, recreational or open space purposes. (h) The acquisition of any existing improvement otherwise authorized pursuant to this section. (i) The acquisition or construction of any community center, municipal auditorium or hall, or similar public facility for the indoor presentation or performances, shows, stage productions, fairs, conventions, exhibitions, pageants, meetings, parties or other group activities or functions, whether such, activities or functions are public or private.

Section 22526 “Incidental Expenses” include all of the following:
(a) The costs and preparation of the report, including plans, specifications, estimates, diagrams and assessment. (b) The costs of printing, advertising and giving of published, posted and mailed notices. (c) Compensation payable to the county for the 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 Section 22662.5 of the Act. (g) Any costs associated with any elections held for the approval of a new or increased assessment.

Engineer’s Report
Belleterra Estates Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26
11 Section 22531 “Maintain” or “maintenance” include means the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of any improvement, including:
(a) Repair, removal or replacement of all or any part of any improvement (b) Providing for the life, growth, health and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing or treating for disease and injury. (c) The removal of trimmings, rubbish, debris and other solid waste. (d) The cleaning, sandblasting and painting of walls and other improvements to remove or cover graffiti.

The 1972 Act permits the designation of areas of benefit within any individual assessment district if "by reason of variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvements." (Sec. 22574). Thus, the 1972 Act requires the levy of a true "assessment" rather than a "special tax."
In November 1996, the voters of California adopted Proposition 218, which has been codified as Articles XIIIC and XIIID of the California Constitution. Proposition 218 imposed a number of substantive and procedural requirements on taxes, assessments, and property-related fees imposed by local governments in California.

The method of apportionment described in this Report, and confirmed by the City Council, utilizes commonly accepted engineering practices established pursuant to the 1972 Act and the California Constitution for the allocation of special benefit assessments. The calculation of assessments is based upon the parcel type and the services and improvements provided to equitably apportion the costs based on the special benefit received by each lot or parcel. The special benefit received by each lot or parcel is over and above any general benefit conferred upon said lots or parcels or to the public at large.

Special Benefit
The improvements and associated costs have been allocated to the assessable properties within the District based upon the special benefit received by those properties. The improvements for which the properties are assessed have been identified as necessary, were installed and are being maintained as part of the development plans specifically for each tract. As such, the improvements and continuing maintenance and servicing of those improvements are strictly the obligation of the properties within the District.

General Benefit
Although the improvements may be visible to passersby or to the public at large, the improvements were installed as a requirement of the development of the tract and are for the sole benefit of properties within the District. It has been determined therefore, any access or use by properties or individuals outside the District is completely incidental and the costs of operating, maintaining, and servicing said improvements therefore provides no measurable benefit to outside properties or individuals.

Definition of Special Benefit
The method of apportionment described in this Report is based on the premise that each assessable parcel or unit receives distinct and special benefits from the improvements and services provided, including the visual desirability provided by well-maintained landscaping. In accordance with Article XIII D, Section 4 of the California Constitution:
“Special benefit means a particular and distinct benefit over and above general benefits conferred on real property located in the District or the public at large”

Engineer’s Report
Belleterra Estates Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26
12 The special benefits associated with local landscaping improvements are specifically:
• Enhanced desirability of properties due to proximity and accessibility of the improvements. • Improved aesthetic appeal provided by a positive representation of the development, neighborhood, and the community.
• Improved accessibility for emergency vehicles.
• Reduced vandalism and other criminal activity.

ASSESSMENT RANGE FORMULA
It is generally recognized that most budgetary items will be impacted by inflation in future years. In accordance with the California Constitution, Section 53739 (b)(1), assessments “may be adjusted for inflation pursuant to a clearly defined formula…” A formula for an inflationary adjustment is therefore included as part of the maximum assessment for this District. Said inflationary adjustment was authorized by the City Council and approved by the property owner(s) at the time of formation. The formula, as described below, allows for annual adjustments to the budget and the assessments.

To impose a new assessment or increased assessment in excess of the Maximum Assessment Rate for the current fiscal year as provided by the preceding Assessment Range Formula, the City must comply with the provisions of the California Constitution, Article XIII D, Section 4c that requires a public hearing and certain protest procedures, including mailed notice of the public hearing and property owner protest balloting. Property owners must approve the proposed new or increased assessment via a property owner protest ballot process before any such new or increased assessment can be imposed. A protest occurs when, at the public hearing, the returned assessment ballots opposed to the new or increased assessment outweigh the returned ballots in favor of the new or increased assessment, weighted according to the financial obligation of each parcel.

The definition of new or increased assessments includes any assessment which, 1) did not previously exist or, 2) exceeds a previously approved assessment amount or assessment range formula. Any assessment range formula must have been previously adopted by the agency and approved by the property owners.

The initial maximum assessment for this District was established at the time of formation and was assessed for the first time during the 2002-03 fiscal year. That initial maximum assessment was $353.24 per parcel or Equivalent Dwelling Unit (“EDU”). This initial maximum assessment has been adjusted each subsequent fiscal year by the following Assessment Range Formula:
• The Maximum Assessment Rate allowed each fiscal year (the “Adjusted Maximum Assessment Rate”) shall be based on the initial maximum assessment established in fiscal year 2002-03, increased annually by three percent (3%).
• Each fiscal year, 3% shall be applied to the Maximum Assessment Rate established the previous fiscal year to calculate the appropriate Adjusted Maximum Assessment Rate for the then current fiscal year. • If the proposed annual assessment rate (levy per EDU) for the upcoming fiscal year is less than or equal to the Adjusted Maximum Assessment Rate established for that fiscal year, then the proposed annual assessment is not considered an increased assessment under Proposition 218.

Engineer’s Report
Belleterra Estates Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26
13 Beginning in the second fiscal year after the formation of the District (2003-04) and each fiscal year since, the Maximum Assessment Rate has been recalculated and a new Maximum Assessment Rate has been established for each fiscal year using the Assessment Range Formula described above. The Maximum Assessment Rate for the upcoming fiscal year (2025-26) shall be $697.15. The table below shows the Adjusted Maximum Assessment Rate for the fiscal years since the formation of the District. The Adjusted Maximum Assessment Rate has been calculated independent of the annual budget and proposed assessment rate for the given fiscal year. As stated above, if the proposed annual assessment for any fiscal year does not exceed the Adjusted Maximum Assessment Rate for that year, it is not considered to be an increased assessment under the terms of Proposition 218.

Fiscal Year
Allowable
Increase
Increase
Calculation
Adjusted Max.

Assessment
Proposed
Assessment
2002-03 N/A N/A $353.24 $0.00
2003-04 3.00% 1.03 $363.84 $363.82
2004-05 3.00% 1.03 $374.75 $374.72
2005-06 3.00% 1.03 $385.99 $385.96
2006-07 3.00% 1.03 $397.57 $397.52
2007-08 3.00% 1.03 $409.50 $409.44
2008-09 3.00% 1.03 $421.79 $421.74
2009-10 3.00% 1.03 $434.44 $132.16
2010-11 3.00% 1.03 $447.47 $0.00
2011-12 3.00% 1.03 $460.90 $0.00
2012-13 3.00% 1.03 $474.73 $0.00
2013-14 3.00% 1.03 $488.97 $0.00
2014-15 3.00% 1.03 $503.64 $116.06
2015-16 3.00% 1.03 $518.74 $212.72
2016-17 3.00% 1.03 $534.31 $236.92
2017-18 3.00% 1.03 $550.34 $218.40
2018-19 3.00% 1.03 $566.85 $242.96
2019-20 3.00% 1.03 $583.85 $287.86
2020-21 3.00% 1.03 $601.37 $311.64
2021-22 3.00% 1.03 $619.41 $475.08
2022-23 3.00% 1.03 $637.99 $480.52
2023-24 3.00% 1.03 $657.13 $494.92
2024-25 3.00% 1.03 $676.84 $535.94
2025-26 3.00% 1.03 $697.15 $662.12

Engineer’s Report
Belleterra Estates Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26
14 ASSESSMENT METHODOLOGY
The benefit formula used to determine the financial obligation for each parcel is based on the improvements benefitting the parcels, as well as the use, or type, of each parcel that benefits from said improvements. One of the more common approaches to fairly distributing District costs in maintenance districts such as this utilizes a methodology referred to as the “Equivalent Dwelling Unit” (“EDU”) method of apportionment. This method utilizes various property characteristics such as type of development (land-use) and size (units or acreage) to compare the proportional benefit of each property compared to other properties benefitting from the improvements.

The District is comprised entirely of residential parcels. Each residential parcel receives similar benefit from the improvements due to the relative size of the properties, the specific improvements and proximity of the improvements to the properties. Because the property characteristics are identical within the District, each parcel has been assigned an EDU value of one (“1”). The total number of units is divided into the “Total Balance to Assessment”, (as shown in Part 3 of this Report) to determine the annual assessment rate per parcel/unit.

Engineer’s Report
Belleterra Estates Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26
15 APPENDIX A – ASSESSMENT ROLL
Parcel Identification for each lot or parcel within the District shall be based on available parcel maps and other property data from the San Joaquin County Assessor’s office as they existed at the time this Report was prepared and adopted by the City Council.

A listing of parcels assessed within the District for Fiscal Year 2025-26, along with the corresponding assessment amounts, is included on the following pages. If any parcel submitted for collection is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, a corrected parcel number and/or new parcel numbers will be identified and resubmitted to the County Auditor/Controller. The assessment amount to be levied and collected for the resubmitted parcel(s) shall be based on the method of apportionment and assessment rate approved in this Report.

Therefore, if a single parcel has changed to multiple parcels, the assessment amounts applied to each of the new parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment.

Non-assessable lots or parcels include areas of public streets and other roadways (typically not assigned an APN by the County); dedicated public easements, open space areas and rights-of-way, including public greenbelts and parkways; utility rights-of-way; common areas; landlocked parcels; small parcels vacated by the County, bifurcated lots and any other property that cannot be developed or has specific development restrictions. These types of parcels are considered to receive little or no benefit from the improvements and are therefore, exempted from assessment.

APN
Lot
Number EDU
2025-26
Maximum
Assessment
Rate
2025-26
Approved
Assessment
Rate
2025-26
Actual
Assessment
Rate
225-310-01 1 1.00 $697.15 $662.12 $662.12
225-310-02 2 1.00 $697.15 $662.12 $662.12
225-310-03 3 1.00 $697.15 $662.12 $662.12
225-310-04 4 1.00 $697.15 $662.12 $662.12
225-310-05 5 1.00 $697.15 $662.12 $662.12
225-310-06 6 1.00 $697.15 $662.12 $662.12
225-310-07 7 1.00 $697.15 $662.12 $662.12
225-310-08 8 1.00 $697.15 $662.12 $662.12
225-310-09 9 1.00 $697.15 $662.12 $662.12
225-310-10 10 1.00 $697.15 $662.12 $662.12
225-310-11 11 1.00 $697.15 $662.12 $662.12
225-310-12 12 1.00 $697.15 $662.12 $662.12
225-310-13 13 1.00 $697.15 $662.12 $662.12
225-310-14 14 1.00 $697.15 $662.12 $662.12
225-310-15 15 1.00 $697.15 $662.12 $662.12
225-310-16 16 1.00 $697.15 $662.12 $662.12

Engineer’s Report
Belleterra Estates Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26
16 APN
Lot
Number EDU
2025-26
Maximum
Assessment
Rate
2025-26
Approved
Assessment
Rate
2025-26
Actual
Assessment
Rate
225-310-17 17 1.00 $697.15 $662.12 $662.12
225-310-18 18 1.00 $697.15 $662.12 $662.12
225-310-21 21 1.00 $697.15 $662.12 $662.12
225-310-22 22 1.00 $697.15 $662.12 $662.12
225-310-23 23 1.00 $697.15 $662.12 $662.12
225-310-24 24 1.00 $697.15 $662.12 $662.12
225-310-25 25 1.00 $697.15 $662.12 $662.12
225-310-26 26 1.00 $697.15 $662.12 $662.12
225-310-27 27 1.00 $697.15 $662.12 $662.12
225-310-28 20 1.00 $697.15 $662.12 $662.12
225-310-29 19 1.00 $697.15 $662.12 $662.12
225-320-01 28 1.00 $697.15 $662.12 $662.12
225-320-02 29 1.00 $697.15 $662.12 $662.12
225-320-03 30 1.00 $697.15 $662.12 $662.12
225-320-04 31 1.00 $697.15 $662.12 $662.12
225-320-05 32 1.00 $697.15 $662.12 $662.12
225-320-06 33 1.00 $697.15 $662.12 $662.12
225-320-07 34 1.00 $697.15 $662.12 $662.12
225-320-08 35 1.00 $697.15 $662.12 $662.12
225-320-09 36 1.00 $697.15 $662.12 $662.12
225-320-10 37 1.00 $697.15 $662.12 $662.12
225-320-11 38 1.00 $697.15 $662.12 $662.12
225-320-12 39 1.00 $697.15 $662.12 $662.12
225-320-13 40 1.00 $697.15 $662.12 $662.12
225-320-14 41 1.00 $697.15 $662.12 $662.12
225-320-15 42 1.00 $697.15 $662.12 $662.12
225-320-16 43 1.00 $697.15 $662.12 $662.12
225-320-17 44 1.00 $697.15 $662.12 $662.12
225-320-18 45 1.00 $697.15 $662.12 $662.12
225-320-19 46 1.00 $697.15 $662.12 $662.12
225-320-20 47 1.00 $697.15 $662.12 $662.12
225-320-21 48 1.00 $697.15 $662.12 $662.12
225-320-22 49 1.00 $697.15 $662.12 $662.12
225-320-23 50 1.00 $697.15 $662.12 $662.12
225-320-24 51 1.00 $697.15 $662.12 $662.12
225-330-01 61 1.00 $697.15 $662.12 $662.12
225-330-02 62 1.00 $697.15 $662.12 $662.12

Engineer’s Report
Belleterra Estates Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26
17 APN
Lot
Number EDU
2025-26
Maximum
Assessment
Rate
2025-26
Approved
Assessment
Rate
2025-26
Actual
Assessment
Rate
225-330-03 63 1.00 $697.15 $662.12 $662.12
225-330-04 64 1.00 $697.15 $662.12 $662.12
225-330-05 65 1.00 $697.15 $662.12 $662.12
225-330-06 66 1.00 $697.15 $662.12 $662.12
225-330-07 67 1.00 $697.15 $662.12 $662.12
225-330-08 68 1.00 $697.15 $662.12 $662.12
225-330-09 69 1.00 $697.15 $662.12 $662.12
225-330-10 70 1.00 $697.15 $662.12 $662.12
225-330-11 71 1.00 $697.15 $662.12 $662.12
225-330-12 72 1.00 $697.15 $662.12 $662.12
225-330-13 73 1.00 $697.15 $662.12 $662.12
225-330-14 76 1.00 $697.15 $662.12 $662.12
225-330-15 77 1.00 $697.15 $662.12 $662.12
225-330-16 78 1.00 $697.15 $662.12 $662.12
225-330-17 79 1.00 $697.15 $662.12 $662.12
225-330-18 80 1.00 $697.15 $662.12 $662.12
225-330-19 81 1.00 $697.15 $662.12 $662.12
225-330-20 82 1.00 $697.15 $662.12 $662.12
225-330-21 83 1.00 $697.15 $662.12 $662.12
225-330-22 84 1.00 $697.15 $662.12 $662.12
225-330-23 85 1.00 $697.15 $662.12 $662.12
225-330-24 86 1.00 $697.15 $662.12 $662.12
225-330-25 87 1.00 $697.15 $662.12 $662.12
225-330-26 B 0.00 $697.15 $662.12 $0.00
225-330-27 A 0.00 $697.15 $662.12 $0.00
225-340-01 52 1.00 $697.15 $662.12 $662.12
225-340-02 53 1.00 $697.15 $662.12 $662.12
225-340-03 54 1.00 $697.15 $662.12 $662.12
225-340-04 55 1.00 $697.15 $662.12 $662.12
225-340-05 56 1.00 $697.15 $662.12 $662.12
225-340-06 57 1.00 $697.15 $662.12 $662.12
225-340-07 58 1.00 $697.15 $662.12 $662.12
225-340-08 59 1.00 $697.15 $662.12 $662.12
225-340-09 60 1.00 $697.15 $662.12 $662.12
225-340-10 74 1.00 $697.15 $662.12 $662.12
225-340-11 75 1.00 $697.15 $662.12 $662.12
225-340-12 88 1.00 $697.15 $662.12 $662.12

Engineer’s Report
Belleterra Estates Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26
18 APN
Lot
Number EDU
2025-26
Maximum
Assessment
Rate
2025-26
Approved
Assessment
Rate
2025-26
Actual
Assessment
Rate
225-340-13 89 1.00 $697.15 $662.12 $662.12
225-340-14 90 1.00 $697.15 $662.12 $662.12
225-340-15 91 1.00 $697.15 $662.12 $662.12
225-340-16 92 1.00 $697.15 $662.12 $662.12
225-340-17 93 1.00 $697.15 $662.12 $662.12
225-340-18 94 1.00 $697.15 $662.12 $662.12
225-340-19 Por. of C 0.00 $697.15 $662.12 $0.00
225-340-20 Por. of C 0.00 $697.15 $662.12 $0.00
225-340-22 95 1.00 $697.15 $662.12 $662.12
225-340-23 96 1.00 $697.15 $662.12 $662.12
225-340-24 97 1.00 $697.15 $662.12 $662.12
225-340-25 98 1.00 $697.15 $662.12 $662.12
225-340-26 99 1.00 $697.15 $662.12 $662.12
225-340-27 100 1.00 $697.15 $662.12 $662.12
225-340-28 101 1.00 $697.15 $662.12 $662.12
225-340-29 102 1.00 $697.15 $662.12 $662.12
225-340-30 103 1.00 $697.15 $662.12 $662.12
225-340-31 104 1.00 $697.15 $662.12 $662.12
225-340-32 105 1.00 $697.15 $662.12 $662.12
225-340-33 106 1.00 $697.15 $662.12 $662.12
225-340-34 107 1.00 $697.15 $662.12 $662.12
225-340-35 108 1.00 $697.15 $662.12 $662.12
225-340-36 109 1.00 $697.15 $662.12 $662.12
225-340-37 110 1.00 $697.15 $662.12 $662.12
225-340-38 111 1.00 $697.15 $662.12 $662.12
225-340-39 112 1.00 $697.15 $662.12 $662.12
225-340-40 113 1.00 $697.15 $662.12 $662.12
225-340-41 114 1.00 $697.15 $662.12 $662.12
225-340-42 115 1.00 $697.15 $662.12 $662.12
225-340-43 116 1.00 $697.15 $662.12 $662.12
225-340-44 117 1.00 $697.15 $662.12 $662.12
225-340-45 118 1.00 $697.15 $662.12 $662.12
225-340-46 119 1.00 $697.15 $662.12 $662.12
225-340-47 120 1.00 $697.15 $662.12 $662.12
225-340-48 121 1.00 $697.15 $662.12 $662.12
225-340-49 122 1.00 $697.15 $662.12 $662.12
225-340-50 123 1.00 $697.15 $662.12 $662.12

Engineer’s Report
Belleterra Estates Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26
19 APN
Lot
Number EDU
2025-26
Maximum
Assessment
Rate
2025-26
Approved
Assessment
Rate
2025-26
Actual
Assessment
Rate
225-340-51 124 1.00 $697.15 $662.12 $662.12
225-340-52 125 1.00 $697.15 $662.12 $662.12
225-340-53 126 1.00 $697.15 $662.12 $662.12
225-340-54 127 1.00 $697.15 $662.12 $662.12
225-340-55 A 0.00 $697.15 $662.12 $0.00
225-340-56 B 0.00 $697.15 $662.12 $0.00
225-340-57 128 1.00 $697.15 $662.12 $662.12
225-340-58 129 1.00 $697.15 $662.12 $662.12
225-340-59 130 1.00 $697.15 $662.12 $662.12
225-340-60 131 1.00 $697.15 $662.12 $662.12
225-340-61 132 1.00 $697.15 $662.12 $662.12
225-340-62 136 1.00 $697.15 $662.12 $662.12
225-340-63 133 1.00 $697.15 $662.12 $662.12
225-340-64 134 1.00 $697.15 $662.12 $662.12
225-340-65 135 1.00 $697.15 $662.12 $662.12
225-340-66 137 1.00 $697.15 $662.12 $662.12
225-340-67 138 1.00 $697.15 $662.12 $662.12
225-340-68 139 1.00 $697.15 $662.12 $662.12
225-340-69 140 1.00 $697.15 $662.12 $662.12
225-340-70 141 1.00 $697.15 $662.12 $662.12
225-340-71 142 1.00 $697.15 $662.12 $662.12
225-340-72 143 1.00 $697.15 $662.12 $662.12
TOTALS: 143.00 $94,683.16

Engineer’s Report
Belleterra Estates Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26
20 APPENDIX B – ASSESSMENT DIAGRAM

Engineer’s Report
Belleterra Estates Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26
21 APPENDIX C – IMPROVEMENT MAP

EXHIBIT 2
Belleterra LLMD
Redline Changes from FY 2024/25 Final Engineer’s Report to FY 2025/26 Final Engineer’s Report (Pages 7-8)

PLAYGROUND EQUIPMENT & AMENITIES
Playground Equipment & Amenities: Funds collected on an annual basis for the eventual replacement of the playground equipment and/or amenities. This equipment has a finite life span and will require replacement after approximately 25 years. The equipment for this District was purchased in 2001. It has a current estimated replacement cost of $36,000. In the year 2026, the costs to replace the equipment will have increased by an estimated total of 4.0%, %. based on a 2% annual inflator. This percentage will be re-evaluated every ten years to determine if an adjustment to the annual collections is necessary. The estimated full replacement cost in 2026 is estimated at $37,440.The cost was reevaluated in 2024 and based on a 2% annual inflator each year, the total estimated full replacement cost in 2026 is $37,454.

MASONRY WALLAT SHADOW WOOD PARK
Masonry Wall at Shadow Wood Park: Funds collected on an annual basis for the eventual replacement of the this masonry wall bordering Shadow Wood Park. The wall has a finite life span and will require replacement after approximately 50 years. The wall was installed as part of the development in 2001 and will likely need replacement within the next 30 years. The replacement cost estimate is $62,400, in 2024 dollars. To account for inflation over the next thirty years,

60.02% (at 2% annually) has been added to the annual collection amount. In the year 2054, the costs to replace the equipment will have increased by an estimated 60.081.1%, based on a 2% annual inflator. This percentage will be re-evaluated occasionally to determine if an adjustment to the annual collections is necessary. The estimated full replacement cost in 2054 is estimated at $99,840113,029.

WOOD FENCE
Wood Fence: Funds collected on an annual basis for the eventual replacement of the wood fence between Brennan Avenue and Albert Lane. The fence has a finite life span and will require replacement after approximately 20 years. The was installed as part of the development in 2001 and will likely need replacement within the next few years. The replacement cost estimate is $7,900, in 2024 dollars. In the year 2026, the costs to replace the equipment will have increased by an estimated 4.0%, based on a 2% annual inflator. This percentage will be re-evaluated

occasionally to determine if an adjustment to the annual collections is necessary. The estimated full replacement cost in 2026 is estimated at $8,219.

CHAIN LINK FENCE
Chain Link Fence: Funds collected on an annual basis for the eventual replacement of the chain link fence between Shadow Wood Park and orchard. The fence has a finite life span and will require replacement after approximately 40 years. The was installed as part of the development in 2001 and will likely need replacement within the next 20 years. The replacement cost estimate is $9,750, in 2024 dollars. To account for inflation over the next twenty years, 402.0% (at 2% annually) has been added to the annual collection amount. In the year 2044, the costs to replace the equipment will have increased by an estimated 40.048.5%, based on a 2% annual inflator. This percentage will be re-evaluated occasionally to determine if an adjustment to the annual collections is necessary. The estimated full replacement cost in 2044 is $13,65014,448.

MASONRY WALL ALONG BRENNAN AVE
Masonry Wall along Brennan Ave: Funds will be collected on an annual basis for the eventual replacement of the this masonry wall along Brennan Avenue. The wall has a finite life span and will require replacement after approximately 50 years. The wall was installed as part of the development in 2001 and will likely need replacement within the next 30 years. The full replacement cost estimate is estimated to be $176,400, in 2024 dollars. To account for inflation over the next thirty years, 60.0% (at 2% annually) has been added to the annual collection amount.

In the year 2054, the costs to replace the equipment will have increased by an estimated 60.081.1%, based on a 2% annual inflator. This percentage will be re-evaluated occasionally to determine if an adjustment to the annual collections is necessary. The estimated full replacement cost in 2054 is estimated at $282,240319,524.

Resolution XX-25

RESOLUTION NO. XX-25

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ESCALON INITIATING

PROCEEDINGS FOR THE ANNUAL LEVY OF ASSESSMENTS AND ORDERING

THE PREPARATION OF ANNUAL ASSESSMENT REPORTS FOR THE CITY OF ESCALON’S BELLETERRA LANDSCAPE MAINTENANCE DISTRICT NO. 01-1 FOR FISCAL YEAR 2025/26
WHEREAS, the City Council of the City of Escalon has previously formed a special maintenance district pursuant to the terms of the “Landscaping and Lighting Act of 1972” (the “1972 Act”), being Division 15, Part 2 of the Streets and Highways Code of the State of California (commencing with Section 22500). Said special maintenance district is known and identified as the Belleterra Landscape Maintenance District No. 01-1 (hereafter referred to as the “District”); and,
WHEREAS, the City Council has retained Harris & Associates (“Harris”) for the purpose of assisting with the annual levy of the District and to prepare and file with the City Clerk, the Annual Assessment Report (“Report”) for the District in accordance with the 1972 Act.

NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS:

SECTION 1. ANNUAL ASSESSMENT REPORT: The City Council wishes to initiate proceedings for the preparation of the Annual Assessment Report and hereby orders Harris to prepare and file with the City Clerk, the Report concerning the annual levy and collection of assessments for the District. Said levy and collection shall be for the fiscal year commencing July, 1, 2025 and ending June 30, 2026 in accordance with Chapter 3, Section 22622 of the 1972 Act.

SECTION 2. PROPOSED IMPROVEMENTS: There are no new improvements or any substantial changes in the existing improvements proposed to be implemented with this Resolution.

EXHIBIT 3

Resolution xx-25

PASSED, APPROVED AND ADOPTED this 7th day of July 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
______________________________
Andrew Hagan, Mayor
ATTEST:
___________________________
MICHELE BATES, Deputy City Clerk

Resolution XX-25

RESOLUTION NO. XX-25

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ESCALON FOR

PRELIMINARY APPROVAL OF THE ANNUAL ASSESSMENT REPORT

REGARDING THE PROPOSED LEVY AND COLLECTION OF ASSESSMENTS FOR THE BELLETERRA LANDSCAPE MAINTENANCE DISTRICT NO. 01-1 FOR FISCAL YEAR 2025/26
WHEREAS, the City Council, pursuant to the provisions of the “Landscaping and Lighting Act of 1972” (the “1972 Act”), being Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) did by previous Resolution, order the preparation of an Annual Assessment Report (the “Report”) for the special maintenance district known and designated as the Belleterra Landscape Maintenance District No. 01-1 (the “District”); and,
WHEREAS, there has now been presented to the City Council the Report as required by Chapter 1, Article 4, Section 22566 of the 1972 Act; and, WHEREAS, the City Council has carefully examined and reviewed the Report as presented and is preliminarily satisfied with said Report, each and all of the budgets, items and documents as set forth therein and is satisfied that the assessment amounts, on a preliminary basis, have been spread in accordance with the special benefit received from the improvements, operation, maintenance and services to be performed within the District as set forth in said Report.

NOW, THEREFORE BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY COUNCIL FOR THE DISTRICT, AS FOLLOWS:

SECTION 1. That the above recitals are true and correct.

SECTION 2. That the Report as presented, consisting of the following:
a. A Description of Improvements to be maintained and serviced. b. A description of the annual Costs and Expenses of the District. c. The Method of Apportionment of Assessments.
d. An Assessment Roll showing the assessments to be levied against each assessable parcel in the District.
e. A Diagram showing the boundaries of the District.
is hereby approved on a preliminary basis and is ordered to be filed in the office of the City Clerk as a permanent record and to remain open to public inspection.

SECTION 3. That the City Clerk shall certify to the passage and adoption of this Resolution and the minutes of this meeting shall so reflect the presentation of the Report.

EXHIBIT 4

Resolution 09-25

PASSED, APPROVED AND ADOPTED this 7th day of July 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Andrew Hagan, Mayor
ATTEST:

MICHELE BATES, Deputy City Clerk

Resolution XX-25

RESOLUTION NO. XX-25

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ESCALON DECLARING

ITS INTENT FOR THE LEVY AND COLLECTION OF ANNUAL ASSESSMENTS FOR THE BELLETERRA LANDSCAPE MAINTENANCE DISTRICT NO. 01-1 FOR FISCAL YEAR 2025/26
WHEREAS, the City Council has by previous Resolutions formed said special maintenance district and has initiated proceedings for Fiscal Year 2025/26, pursuant to the provisions of the “Landscaping and Lighting Act of 1972” (the “1972 Act”), being Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) that provides for the levy and collection of assessments by San Joaquin County to pay for the annual maintenance and servicing costs of all improvements and facilities related thereto. Said special maintenance district is known and identified as the Belleterra Landscape Maintenance District No. 01-1 (hereafter referred to as the “District”); and, WHEREAS, following the May 5, 2025 City Council meeting it was determined necessary to restart the annual assessment collection proceedings to allow time for additional review and preparation of necessary documents, therefore all previous resolutions related to the collection of annual assessments for the District adopted on May 5, 2025 are superseded by the resolutions adopted on July 7, 2025; and,
WHEREAS, the City Council has retained Harris & Associates (“Harris”) for the purpose of assisting with the annual levy of the District and to prepare and file an Annual Assessment Report (the “Report”) for the District, in accordance with the 1972 Act; and, WHEREAS, upon review of the estimated costs of certain improvements it has been determined that such costs are greater than what can be conveniently raised from a single year’s annual assessment, therefore the City Council finds it necessary to collect assessments to cover the costs of certain improvements in installments over a period not to exceed 30 years pursuant to section 22660(b) of the 1972 Act.

NOW, THEREFORE BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY COUNCIL, FOR THE DISTRICT, PURSUANT TO CHAPTER 3, SECTION 22624 OF THE 1972 ACT, AS FOLLOWS:

Section 1 Intention: The City Council hereby declares that it is its intention to seek the annual levy of the District pursuant to the 1972 Act for Fiscal Year 2025/26, over and including the land within the District boundaries and to levy and collect assessments on all benefitting land to pay the annual costs of the maintenance and servicing of the improvements located within the District. The City Council finds that the public’s best interest requires such levy and collection.

Section 2 Report and District Boundaries: The boundaries of the District are described in the Report, on file with the City Clerk and incorporated herein by this reference. Please refer to the Report for a full and complete description of the improvements, the specific boundaries of the District, the proposed assessments, and diagram.

EXHIBIT 5

Resolution XX-25

Section 3 Description of Improvements: The improvements within the District may include, but are not limited to: turf, shrubs, plants and trees, landscaping, street lighting, irrigation and drainage systems, graffiti removal, pedestrian walkways, landscape lighting, masonry walls, and associated appurtenances within the public rights-of-way or specific easements. Services provided include all necessary service, operations, administration and maintenance required to keep the improvements in a healthy, vigorous and/or satisfactory operating condition. There are no new improvements or any substantial changes proposed to existing improvements.

Section 4 Proposed Assessment Amounts: For Fiscal Year 2025/26, the proposed assessments are shown in the Report. The assessments are not proposed to be increased from the previous year as defined in section 22630.5 of the 1972 Act and Government Code, section 54954.6.

Section 5 Installment Assessments: The City Council finds it necessary to collect assessments for the purpose of funding certain improvements which cannot be conveniently raised from a single year’s annual assessment, therefore the City Council finds it necessary to collect assessments to cover the costs of certain improvements in installments over a period not to exceed 30 years pursuant to section 22660(b) of the 1972 Act. The information related to the installment assessments is attached as Exhibit “A” hereto and is incorporation herein be this reference.

Section 6 Public Hearing: The City Council hereby declares its intention to conduct a Public Hearing annually concerning the levy of assessments for the District in accordance with Chapter 3, Section 22626 of the 1972 Act.

Section 7 Notice: The City Council shall give notice of the time and place of the Public Hearing to all property owners within the District by causing the publishing of this Resolution once in the local newspaper not less than ten (10) days before the date of the Public Hearing and by posting a copy of this Resolution on the official bulletin board customarily used by the City for the posting of notices. All interested persons shall be afforded the opportunity to hear and be heard.

Section 8 Notice of Public Hearing: Notice is hereby given that a Public Hearing on these matters will be held by the City Council on Monday, July 21, 2025 at 7:00 p.m. at Escalon City Hall, located at 2060 McHenry Avenue, Escalon.

Section 9 The City Clerk is hereby authorized and directed to give notice of said Public Hearing as provided by the 1972 Act.

Resolution XX-25

PASSED, APPROVED AND ADOPTED this 7th day of July 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
______________________________
Andrew Hagan, Mayor
ATTEST:
___________________________
MICHELE BATES, Deputy City Clerk

Resolution XX-25

Exhibit “A”
Installment Assessment Information
A. Playground equipment in Shadow Wood park
i. Estimated total costs to complete $75,000
ii. Total number of annual installments to complete: 25 years iii. Funds will be collected each Fiscal Year through Fiscal Year 2050-51 iv. $20.98 of the actual assessment goes to Capital Replacement B. Street Trees along interior streets
i. Estimated total costs to complete $30,000
ii. Total number of annual installments to complete: 10 years iii. Funds will be collected each Fiscal Year through Fiscal Year 2035-36 iv. $20.98 of the actual assessment goes to Capital Replacement C. Masonry Wall along Shadow Wood Park (312 LF)
i. Estimated total costs to complete $35,334 (represents 2/3 of the total costs) ii. Total number of annual installments to complete: 30 years iii. Funds will be collected each Fiscal Year through Fiscal Year 2055-56 iv. $8.24 of the actual assessment goes to Capital Replacement D. Wood fence along pedestrian path, between Brennan Avenue and Albert Lane (158 LF)
i. Estimated total costs to complete $7,900
ii. Total number of annual installments to complete: 20 years iii. Funds will be collected each Fiscal Year through Fiscal Year 2045-46 iv. $2.76 of the actual assessment goes to Capital Replacement E. Chain link fence between Shadow Wood Park and orchard (325 LF) i. Estimated total costs to complete $9,750
ii. Total number of annual installments to complete: 30 years iii. Funds will be collected each Fiscal Year through Fiscal Year 2055-56 iv. $1.71 of the actual assessment goes to Capital Replacement F. Masonry wall along Brennan Avenue (882 LF)
i. Estimated total costs to complete $105,582 (represents 2/3 of the total costs)

Resolution xx-25

ii. Total number of annual installments to complete: 30 years iii. Funds will be collected each Fiscal Year through Fiscal Year 2055-56 iv. $24.61 of the actual assessment goes to Capital Replacement

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ITEM NO. 7

COUNCIL AGENDA ITEM
FOR JULY 7, 2025
Prepared By: Jaylen French, City Manager
Date: June 18, 2025
Subject: Estates Benefit Assessment District No. 06-1, Consideration of Initiating Proceedings for the Levy and collection of Assessments for Fiscal Year 2025- 26 Recommendation:

Adopt the: (1) Resolution Initiating Proceedings for the Annual Levy of Assessments and Ordering the Preparation of Engineer’s Reports for the Estates Benefit Assessment District No. 06-1 for Fiscal Year 2025-26; (2) Resolution for Preliminary Approval of the Engineer’s Report Regarding the Proposed Levy and Collection of Assessments for the Estates Benefit Assessment District No. 06-1 for Fiscal Year 2025-26; and (3) Resolution Declaring the Intention to Levy and Collect the Annual Assessments for the Estates Benefit Assessment District No. 06-1 for Fiscal Year 2025-26.

Strategic Plan Priority:

This action supports Escalon 2025-2026 Strategic Plan Priority #2, Fiscal Stability. Landscape and Lighting Districts (LLDs) provide dedicated revenue for the ongoing maintenance, repair, and replacement of infrastructure and amenities in their respective neighborhoods throughout the City.

Background and Discussion:

This assessment funds the costs of street sweeping, storm drainage facilities including drainage basins and a pump station, and associated appurtenant facilities. Services include all necessary service, operation, administration, and maintenance required to keep the above-mentioned improvements in a satisfactory working condition. The assessment district was formed in 2006.

For Fiscal Year (FY) 2025-26, staff has reevaluated and updated the actual costs of services to the District in establishing the proposed assessment rate. The assessment per single-family residential unit is proposed at $145.36, a decrease of $1.44 from the prior year’s assessment of $146.80.

The District’s maximum allowable assessment for FY 2025-26 is $266.11. The proposed assessment of $145.36 is approximately 45% lower than the maximum permitted. The City Council retains the discretion to adopt a lower assessment than the proposed assessment.

Assessment History by Fiscal Year
FY 21/22 FY 22/23 FY 23/24 FY 24/25 Proposed FY
25/26
Assessment $ 90.16 $ 91.00 $ 96.94 $ 146.80 $ 145.36
Change $ $ (20.50) $ 0.84 $ 5.94 $ 49.86 $ (1.44)
Change % -7% 1% 7% 51% -1%
Comparison of Maximum and Proposed Assessment
Maximum
Assessment
Proposed
FY 25/26
Assessment
$ Below Max % Below
Max
Estates BAD $ 266.11 $ 145.36 $ 120.75 45%
Further details and financial analysis are available in the attached Engineer’s Report for FY 2025-26.

Fiscal Impact:

After council approval of the three attached resolutions, a public hearing will be held on July 21, 2025 to approve the FY 2025-26 budget for the Estates Benefit Assessment District No. 06-1 and approve the associated property assessments.

Exhibits:

1. Engineer’s Report FY 2025-26 for Estates Benefit Assessment District No. 06-1

2. Resolution Initiating Proceedings for the Annual Levy of Assessments and Ordering the Preparation of Engineer’s Reports for the Estates Benefit Assessment District No. 06-1 for Fiscal Year 2025-26

3. Resolution for Preliminary Approval of the Engineer’s Report Regarding the Proposed Levy and Collection of Assessments for the Estates Benefit Assessment District No. 06-1 for Fiscal Year 2025-26

4. Resolution Declaring the Intention to Levy and Collect the Annual Assessments for the Estates Benefit Assessment District No. 06-1 for Fiscal Year 2025-26

CITY OF ESCALON
FINAL ENGINEER’S REPORT
FISCAL YEAR 2025-26

ESTATES BENEFIT ASSESSMENT
DISTRICT NO. 06-1
JUNE 2025

PREPARED BY
Harris & Associates
1401 Willow Pass Road, Suite 500
Concord, CA 94520
www.weareharris.com
EXHIBIT 1

Engineer’s Report
Estates Benefit Assessment District
City of Escalon
Fiscal Year 2025-26

TABLE OF CONTENTS
STATEMENT OF ASSESSMENT ENGINEER….……………………………………………………………..1 PART 1 – PLANS AND SPECIFICATIONS……………………………………………………………………..3 PART 2 – ESTIMATE OF COSTS………………………………………………………………………………….4 PART 3 – ASSESSMENT DIAGRAM…………………………………………………………………………….7 PART 4 – METHOD OF APPORTIONMENT………………………………………………………………...8 APPENDIX A – ASSESSMENT ROLL…………………………………………………………………………..12 APPENDIX B – DISTRICT DIAGRAM………….……………………………………………………….……..14 APPENDIX C – IMPROVEMENT MAP……….……………………………………………………………...15

Engineer’s Report
Estates Benefit Assessment District
City of Escalon
Fiscal Year 2025-26

1 STATEMENT OF ASSESSMENT ENGINEER
AGENCY: CITY OF ESCALON
PROJECT: ESTATES BENEFIT ASSESSMENT DISTRICT NO. 06-1
TO: THE CITY COUNCIL

CITY OF ESCALON

STATE OF CALIFORNIA
ENGINEER’S REPORT FOR FISCAL YEAR 2025-26
The preparation of this Annual Engineer’s Report (“Report”) is in conformance with the obligation of the City Council for the Estates Benefit Assessment District of the City of Escalon to provide landscaping services upon each lot or parcel of land in the district in proportion to the estimated benefit to be received by each such lot or parcel of land for Fiscal Year 2025-26.

Pursuant to the Benefit Assessment Act of 1982, Section 5 of the California Government Code (“1982 Act”), beginning with Section 54703, Article XIIID, Section 4(a) of the State of California Constitution (collectively “Assessment Law”), and in accordance with the City of Escalon’s Resolution being adopted by the City Council for the:

ESTATES BENEFIT ASSESSMENT DISTRICT
(Hereinafter referred to as the “District”),
I, Alison Bouley, authorized representative of the District, the duly appointed Assessment Engineer submit the following Report which consists of the following four (4) parts and Appendices:

PART 1
Description of Improvements: This part provides a general description of improvements proposed to be maintained in the District. Plans and specifications for the improvements are on file with the City and are hereby made a part of this Report by reference.

PART 2
Estimate of Cost: This part contains the cost estimate of the proposed maintenance including incidental costs and expenses for Fiscal Year 2025-26.

PART 3
District Diagram: This part incorporates a Diagram of the District showing the external boundaries of the District. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the San Joaquin County Assessor for the year in which this Report was prepared and are incorporated by reference herein and made part of this Report. A copy of the District Diagram is included in Appendix B and also has been filed under separate cover with the office of the City Clerk.

Engineer’s Report
Estates Benefit Assessment District
City of Escalon
Fiscal Year 2025-26

2 PART 4
Method of Apportionment of the Assessments: This part describes the method of apportionment of assessments, based upon parcel classification of land within the District in proportion to the estimated special benefits to be received. The costs and expenses of the District have been assessed upon the parcels of land within the boundaries of the District pursuant to the initial methodology established Resolution No. 32-06 approved on the 17th day of July, 2006. For particulars as to the identification of parcels, reference is made to the District Diagram.

Appendices
Appendix A – Assessment Roll
Appendix B – District Diagram
Appendix C – Improvement Map
In conclusion, it is my opinion that the costs and expenses of the District have been assessed to the lots and parcels within the boundaries of the District in proportion to the estimated benefits to be received by each lot or parcel from the services provided.

DATED this 19th day of May, 2025
___________________________________________
Alison Bouley, P.E., Assessment Engineer
R.C.E. C61383
Engineer of Work

Engineer’s Report
Estates Benefit Assessment District
City of Escalon
Fiscal Year 2025-26

3 PART 1 - PLANS AND SPECIFICATIONS
The District was formed to provide a funding mechanism to ensure the ongoing operation, maintenance and servicing of certain drainage and street improvements within the boundaries of the District. Said improvements are detailed below under “Improvements and Services Provided”.

The Estates Benefit Assessment District No. 06-1 is within the boundaries of the City and is located north of Narcissus Way, south of APN number 247-150-63, east of McHenry Avenue and west of APN 247-150-36.

The District was formed on July 17, 2006, when the City Council adopted a Resolution Approving the Formation of the District. The sole property owner at that time was Escalon Estates, LLC.

The District is comprised of the residential development known as The Estates and consists of thirty-four (34) developed single-family residential parcels and four commercial parcels, three of which are currently developed. Appendix C also contains an Improvement Map showing the location of the improvements.

IMPROVEMENTS AND SERVICES PROVIDED
The following are the specific improvements maintained and serviced within the District:

STORM DRAINAGE SYSTEM
• Drainage basins located at the southeast corner of the development and at the northwest corner, west of the housing tract and north of the commercial parcels (APN 247-150-64). • Pump station located at the southeast corner of the tract. • Utility costs for operation of pump station.
• Maintenance and repair costs for pump and station.

STREET MAINTENANCE
• Street sweeping includes 5,159 linear feet of curb length. Sweeping is performed along Narcissus Way and McHenry Avenue on the exterior and also on the interior streets of the tract.

Reference is made to the plans and specifications for the improvements on file in the office of the City Clerk and which are incorporated herein by reference.

Engineer’s Report
Estates Benefit Assessment District
City of Escalon
Fiscal Year 2025-26

4 PART 2 – ESTIMATE OF COST
The estimated budget for the annual maintenance and servicing of the improvements and the proportionate share of administration costs of the District have been prepared based on the estimated and recent historical costs of the District.

The 2025-26 District budget is shown below.

ESTIMATE OF COSTS
1 The annual Capital Replacement cost of $1,778.00, as shown above, represents an annual charge of approximately $38.00 per parcel/unit.

The storm pump was purchased in 2006. It has a life expectancy of 20 years, and the replacement cost is estimated to be $21,240.00. There are approximately six (6) years remaining before the anticipated replacement of the storm pump. If the expected replacement costs are revised over the next few years, this Capital Replacement collection will be adjusted accordingly.

The storm pump for this District was replaced during the 2023-24 Fiscal Year. Replacement costs came from the Capital Reserve fund, as originally planned.

DIRECT COSTS
Utility – Electricity (pump station @ $51.17 per month) $614.00 Street Sweeping - Public Works (5,159 linear feet @ $111.83 per month) 1,342.00 Special Departmental Expenses 0.00
Property Tax Charges 138.00
Contingency 0.00
Direct Costs Sub-Total $2,094.00

CAPITAL REPLACEMENT COSTS
Capital Replacement (annual collection to replace storm pump) (1) $1,778.00 Replace Masonry Wall Around North & East Basin Boundary (327') $1,438.80 Replace Chain Link Fence Around West & South Basin Boundary (267') $266.83 Capital Replacement Costs Sub-Total $3,483.63

ADMINISTRATIVE COSTS
Professional Services – Engineer (Harris & Assoc. charge of $258.75 per quarter) $1,035.00
Public Mail Notice ($1.50 per parcel) $57.00
General Government Charge (City admin fee – See Descriptions below) 93.00 County Administration Fee (See Descriptions below) 69.00 Rounding Adjustment (to make an even penny for tax roll purposes) 0.29 Administrative Costs Sub-Total $1,254.29
SUBTOTAL DIRECT, CAPITAL AND ADMINISTRATIVE COSTS $6,831.92 Operating Reserve Collection/(Reduction) 0.00
TOTAL BALANCE TO ASSESSMENT $6,831.92
Total Assessable Parcels/Units 47.00
ASSESSMENT PER PARCEL/EDU $145.36

Engineer’s Report
Estates Benefit Assessment District
City of Escalon
Fiscal Year 2025-26

5 Districts may include an Operating Reserve fund which shall not exceed the estimated costs of maintenance and servicing to December 10 of the fiscal year, or whenever the city expects to receive its apportionment of special assessments and tax collections from the county, whichever is later. Estimated beginning and ending fund balances for Fiscal Year 2025-26 are shown in the following table.

DISTRICT FUND BALANCES
The storm pump replacement expenditure was approximately $10,000. Funding came from the Capital Replacement fund.

DESCRIPTION OF COST ESTIMATE ITEMS
• Utility - Electricity: The costs associated with the Pacific Gas and Electric Company to provide electricity for operation of the storm drain pumps within the District. • Street Sweeping: This item covers to costs of street sweeping within the areas of the District. This includes interior and exterior streets.
• Capital Replacement (1) – Storm Drain Pump: Funds collected on an annual basis for the eventual replacement of the storm drain pump. The pump and pump station facilities have a finite life span and will require replacement. Funds are collected annually so the replacement costs are available at the appropriate time. • Contingency: This item covers the costs of repair and/or replacement due to unexpected expenses arising from unforeseen issues such as accidents, vandalism, natural disasters, etc. • Professional Services - Engineer: The contracting costs associated with hiring a company to manage and perform the annual administration duties of the District. These services include preparation of reports, resolutions, assessment rolls and budgets; preparation and placement of assessment amounts onto the County tax rolls; tracking and upkeep of the District database; answering questions for City staff and property owners; and finally, act as an expert resource in matters related to the District.

OPERATING FUND
Estimated Reserve Fund Beginning Balance as of July 1, 2025 $3,415.96 Operating Reserve Collection – Fiscal Year 2025-26 0.00 Interest Revenue 1,085.33
Estimated Reserve Fund Balance Ending June 30, 2026 $4,501.29

CAPITAL REPLACEMENT FUND
Capital Replacement Fund Balance as of July 1, 2025 $17,782.55 Capital Replacement Collections – Fiscal Year 2025-26 $3,483.63 Interest Revenue 0.00
Estimated Capital Replacement Fund Balance Ending June 30, 2026 $21,266.18

Engineer’s Report
Estates Benefit Assessment District
City of Escalon
Fiscal Year 2025-26

6 • General Government Charge: Costs associated with individual City Staff and Management (City Clerk, City Council, City Manager, Finance Director, City Engineer, etc.) who contribute time to the annual administration and oversight of the District. This may include but is not limited to, preparation for and attendance of meetings, preparation and posting of public notices, budgeting, inspection, etc. This cost is calculated based on an allocation plan accepted by the City Council in June 2018, prepared by Clear Source Financial. • County Administration Fee: The County costs related to placement of the annual assessment charges onto the tax roll and the generation of annual tax bills related thereto. This charge is the lesser of $3.00 per parcel or 1% of the total levy submitted per District.
• Rounding Adjustment: This amount allows the annual assessment rate to be an even number. The County requires that all assessments submitted for inclusion on the tax roll be an even number so the amount can be split evenly between the two tax bill installments.
• Operating Reserve Collection/(Contribution): This item shows any collections which adds to the Operating Reserve Fund balance, or contributions made from the Operating Reserve Fund, to offset any deficit in the annual budget.
• Estimated Reserve Fund Balances: These items show the estimated Operating Reserve Fund amounts at the beginning and end of the fiscal year. The estimated ending balance reflects any collections or reductions from the estimated beginning balance.

Engineer’s Report
Estates Benefit Assessment District
City of Escalon
Fiscal Year 2025-26

7 PART 3 – ASSESSMENT DIAGRAM
A diagram showing the exterior boundaries of the District and the lines and dimensions of each lot or parcel of land within the District has been submitted to the office of the City Clerk of the City of Escalon and is hereby made a part hereof by reference.

A copy of the assessment diagram for the District is included in Appendix B of this Report.

Engineer’s Report
Estates Benefit Assessment District
City of Escalon
Fiscal Year 2025-26

8 PART 4 – METHOD OF APPORTIONMENT

GENERAL
The 1982 Act allows for the establishment of assessment districts by public agencies for the purpose of providing certain public improvements as detailed in Section I of this Report. The 1982 Act also complies with the California Constitution which requires the cost of these improvements and services to be assessed based on benefit received rather than by assessed value of the properties being assessed.
“An agency which proposes to levy an assessment shall identify all parcels which will have a special benefit conferred upon them and upon which an assessment will be imposed. The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of the public improvement or the cost of the property related service being provided. No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable…” — Article XIII D, Section 4 of the California Constitution Definitions from Section 54710 of the 1982 Act:

Any local agency which is authorized by law to provide one or more of the following services may impose a benefit assessment pursuant to this chapter to finance the maintenance and operation costs of the following services:
(a) Drainage
(b) Flood control
(c) Street lighting
In November 1996, the voters of California adopted Proposition 218, which has been codified as Articles XIIIC and XIIID of the California Constitution. Proposition 218 imposed a number of substantive and procedural requirements on taxes, assessments, and property-related fees imposed by local governments in California.

The method of apportionment described in this Report, and confirmed by the City Council, utilizes commonly accepted engineering practices which have been established pursuant to the 1982 Act and the California Constitution for the allocation of special benefit assessments. The calculation of assessments is based upon the parcel type and the services and improvements provided to equitably apportion the costs based on the special benefit received by each lot or parcel.

The special benefit received by each lot or parcel is over and above any general benefit conferred upon said lots or parcels or to the public at large.

SPECIAL BENEFIT
The improvements and associated costs have been allocated to the assessable properties within the District based upon the special benefit received by those properties. The improvements for which the properties are assessed have been identified as necessary, were installed and are being maintained as part of the development plans specifically for each tract. As such, the improvements and continuing maintenance and servicing of those improvements are strictly the obligation of the properties within the District.

Engineer’s Report
Estates Benefit Assessment District
City of Escalon
Fiscal Year 2025-26

9 General Benefit
Although the improvements may be visible to passersby or to the public at large, the improvements were installed as a condition of the development of the tract and are for the sole benefit of properties within the District. It has been determined therefore, any access or use by properties or individuals outside the District is completely incidental and the costs of operating, maintaining, and servicing said improvements therefore provides no measurable benefit to outside properties or individuals.

Definition of Special Benefit
The method of apportionment described in this Report is based on the premise that each assessable parcel or unit receives distinct and special benefits from the improvements and services provided, including the visual desirability provided by well-maintained landscaping. In accordance with Article XIII D, Section 4 of the California Constitution:
“Special benefit means a particular and distinct benefit over and above general benefits conferred on real property located in the District or the public at large” The special benefits associated with local drainage and lighting improvements are specifically:
• Enhanced desirability of properties due to existence of the improvements and the services provided by the District.
• Improved aesthetic appeal provided by a positive representation of the development, neighborhood and the community.
• Improved accessibility for emergency vehicles.
• Reduced vandalism and other criminal activity.

ASSESSMENT RANGE FORMULA
It is generally recognized that most budgetary items will be impacted by inflation in future years. In accordance with the California Constitution, Section 53739 (b)(1), assessments “may be adjusted for inflation pursuant to a clearly defined formula…” A formula for an inflationary adjustment is therefore included as part of the maximum assessment for this District. Said inflationary adjustment was authorized by the City Council and approved by the property owner(s) at the time of formation. The formula, as described below, allows for annual adjustments to the budget and the assessments.

To impose a new assessment or increased assessment in excess of the Maximum Assessment Rate for the current fiscal year as provided by the preceding Assessment Range Formula, the City must comply with the provisions of the California Constitution, Article XIII D, Section 4c that requires a public hearing and certain protest procedures, including mailed notice of the public hearing and property owner protest balloting. Property owners must approve the proposed new or increased assessment via a property owner protest ballot process before any such new or increased assessment can be imposed. A protest occurs when, at the public hearing, the returned assessment ballots opposed to the new or increased assessment outweigh the returned ballots in favor of the new or increased assessment, weighted according to the financial obligation of each parcel.

The definition of new or increased assessments includes any assessment which, 1) did not previously exist or, 2) exceeds a previously approved assessment amount or assessment range formula. Any assessment range formula must have been previously adopted by the agency and approved by the property owners.

Engineer’s Report
Estates Benefit Assessment District
City of Escalon
Fiscal Year 2025-26

10 ASSESSMENT METHODOLOGY
The benefit formula used to determine the financial obligation for each parcel is based on the improvements benefitting the parcels, as well as the use, or type, of each parcel that benefits from said improvements. One of the more common approaches to fairly distributing District costs in maintenance districts such as this utilizes a methodology referred to as the “Equivalent Dwelling Unit” (“EDU”) method of apportionment. This method utilizes various property characteristics such as type of development (land-use) and size (units or acreage) to compare the proportional benefit of each property compared to other properties benefitting from the improvements.

The District is comprised of 2 parcel types: single-family residential and commercial. Each single-family residential parcel is deemed to receive equal benefit from the improvements and is therefore assigned 1 unit per parcel or 1 EDU.

Each commercial parcel receives similar benefit from the improvements due to the relative size and location of the properties. Because the commercial property characteristics are so similar, they have been generalized to the acreage of each parcel as an appropriate basis for calculating the total units for each parcel. A typical commercial parcel is equal in size to four residential parcels. Commercial parcel acreage is therefore multiplied by a factor of 4.00 to determine the parcel EDU. The total Zone EDU is then divided into the “Total Balance to Assessment” to determine the annual assessment rate. The EDU for each parcel is then multiplied by the annual assessment rate to determine the annual assessment for each parcel.

The initial maximum assessment was established at the time of formation and was assessed for the first time in Fiscal Year 2006-07. That initial maximum assessment was $353.24 per parcel or Equivalent Dwelling Unit (“EDU”). This initial maximum assessment has been adjusted each subsequent fiscal year by the following Assessment Range Formula:
• The Maximum Assessment Rate allowed each fiscal year (the "Adjusted Maximum Assessment Rate") shall be based on the initial maximum assessment established in Fiscal Year 2006-07, adjusted annually by the greater of the Bureau of Labor Statistics, Consumer Price Index for the month of April, All Urban Consumers, ("CPI") for the San Francisco/Oakland/Hayward area or three percent (3%). Should the Bureau of Labor Statistics revise or discontinue the preparation of such index, the City reserves the right to use such revised index or a comparable system to determine fluctuations in the annual cost of living. • Each fiscal year, the greater of CPI or 3% shall be applied to the Maximum Assessment Rate established the previous fiscal year to calculate the appropriate Adjusted Maximum Assessment Rate for the then current fiscal year.
• If the proposed annual assessment rate (levy per EDU) for the upcoming fiscal year is less than or equal to the Adjusted Maximum Assessment Rate established for that fiscal year, then the proposed annual assessment is not considered an increased assessment.

Beginning in the second fiscal year after the formation of the District (2007-08) and each fiscal year since, the Maximum Assessment Rate has been recalculated and a new Maximum Assessment Rate has been established for each fiscal year using the Assessment Range Formula described above. The Maximum Assessment Rate for the upcoming fiscal year (2025- 26) shall be $261.04. The Adjusted Maximum Assessment Rate has been calculated independent of the annual budget and proposed assessment rate for the given fiscal year. As stated above, if the proposed annual assessment for any fiscal year does not exceed the Adjusted Maximum Assessment Rate for that year, it is not considered to be an increased assessment under the terms of Proposition 218.

Engineer’s Report
Estates Benefit Assessment District
City of Escalon
Fiscal Year 2025-26

11 The following table shows the April CPI, the Allowable Increase, the Adjusted Maximum Assessment and the Actual Annual Assessment each year since the formation of the District:

Fiscal April Allowable CPI Adjusted Max. Actual
Year CPI % Increase Calculation Assessment Assessment
2006-07 N/A N/A N/A $139.00 $69.50
2007-08 3.30% 3.30% 1.033231211 $143.62 $143.58
2008-09 2.90% 3.00% 1.030000000 $147.93 $147.88
2009-10 0.80% 3.00% 1.030000000 $152.37 $152.32
2010-11 1.70% 3.00% 1.030000000 $156.94 $156.90
2011-12 2.80% 3.00% 1.030000000 $161.64 $80.60
2012-13 2.10% 3.00% 1.030000000 $166.49 $35.58
2013-14 2.40% 3.00% 1.030000000 $171.49 $58.50
2014-15 2.80% 3.00% 1.030000000 $176.63 $20.24
2015-16 2.40% 3.00% 1.030000000 $181.93 $71.58
2016-17 2.70% 3.00% 1.030000000 $187.39 $97.90
2017-18 3.78% 3.78% 1.037888610 $194.49 $84.32
2018-19 3.21% 3.21% 1.032168077 $200.75 $83.24
2019-20 4.00% 4.00% 1.040148612 $208.81 $107.58
2020-21 3.00% 3.00% 1.030003290 $215.07 $110.66
2021-22 3.80% 3.80% 1.038061018 $223.26 $90.16
2022-23 4.99% 4.99% 1.049961379 $234.41 $91.00
2023-24 4.19% 4.19% 1.041917274 $244.24 $96.94
2024-25 3.77% 3.77% 1.037669574 $253.44 $146.80
2025-26 3.00% 3.00% 1.030000000 $261.04 $145.36

Engineer’s Report
Estates Benefit Assessment District
City of Escalon
Fiscal Year 2025-26

12 APPENDIX A – ASSESSMENT ROLL
Parcel Identification for each lot or parcel within the District shall be based on available parcel maps and other property data from the San Joaquin County Assessor’s office as they existed at the time this Report was prepared and adopted by the City Council.

A listing of parcels assessed within the District for Fiscal Year 2025-26, along with the corresponding assessment amounts, is included below. If any parcel submitted for collection is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, a corrected parcel number and/or new parcel numbers will be identified and resubmitted to the County Auditor/Controller. The assessment amount to be levied and collected for the resubmitted parcel(s) shall be based on the method of apportionment and assessment rate approved in this Report. Therefore, if a single parcel has changed to multiple parcels, the assessment amounts applied to each of the new parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment.

Non-assessable lots or parcels include areas of public streets and other roadways (typically not assigned an APN by the County); dedicated public easements, open space areas and rights-of-way, including public greenbelts and parkways; utility rights-of-way; common areas; landlocked parcels; small parcels vacated by the County, bifurcated lots and any other property that cannot be developed or has specific development restrictions. These types of parcels are considered to receive little or no benefit from the improvements and are therefore, exempted from assessment.

APN
Lot
Number EDU
2025-26
Maximum
Assessment Rate
2025-26
Approved
Assessment Rate
2025-26
Actual
Assessment Rate
9 0.00 $261.04 $145.36 $0.00
247-150-65 Por. of 16 4.00 $261.04 $145.36 $581.44
247-150-66 Por. of 16 4.00 $261.04 $145.36 $581.44
247-150-67 Por. of 16 4.00 $261.04 $145.36 $581.44
247-310-03 3 1.00 $261.04 $145.36 $145.36
247-310-04 4 1.00 $261.04 $145.36 $145.36
247-310-05 5 1.00 $261.04 $145.36 $145.36
247-310-06 6 1.00 $261.04 $145.36 $145.36
247-310-07 7 1.00 $261.04 $145.36 $145.36
247-310-08 8 1.00 $261.04 $145.36 $145.36
247-310-09 9 1.00 $261.04 $145.36 $145.36
247-310-10 10 1.00 $261.04 $145.36 $145.36
247-310-11 11 1.00 $261.04 $145.36 $145.36
247-310-12 12 1.00 $261.04 $145.36 $145.36
247-310-13 13 1.00 $261.04 $145.36 $145.36
247-310-14 14 1.00 $261.04 $145.36 $145.36
247-310-15 15 1.00 $261.04 $145.36 $145.36
247-310-16 16 1.00 $261.04 $145.36 $145.36

Engineer’s Report
Estates Benefit Assessment District
City of Escalon
Fiscal Year 2025-26

13 APN
Lot
Number EDU
2025-26
Maximum
Assessment Rate
2025-26
Approved
Assessment Rate
2025-26
Actual
Assessment Rate
247-310-17 17 1.00 $261.04 $145.36 $145.36
247-310-18 18 1.00 $261.04 $145.36 $145.36
247-310-19 19 1.00 $261.04 $145.36 $145.36
247-310-20 20 1.00 $261.04 $145.36 $145.36
247-310-21 21 1.00 $261.04 $145.36 $145.36
247-310-22 22 1.00 $261.04 $145.36 $145.36
247-310-23 23 1.00 $261.04 $145.36 $145.36
247-310-24 24 1.00 $261.04 $145.36 $145.36
247-310-25 25 1.00 $261.04 $145.36 $145.36
247-310-26 26 1.00 $261.04 $145.36 $145.36
247-310-27 27 1.00 $261.04 $145.36 $145.36
247-310-28 28 1.00 $261.04 $145.36 $145.36
247-310-29 29 1.00 $261.04 $145.36 $145.36
247-310-30 30 1.00 $261.04 $145.36 $145.36
247-310-31 31 1.00 $261.04 $145.36 $145.36
247-310-32 32 1.00 $261.04 $145.36 $145.36
247-310-33 33 1.00 $261.04 $145.36 $145.36
247-310-34 34 1.00 $261.04 $145.36 $145.36
247-310-35 A 0.00 $261.04 $145.64 $0.00
247-310-36 B 0.00 $261.04 $145.64 $0.00
247-310-37 Por. of 1 1.00 $261.04 $145.36 $145.36
247-310-38 Por. of 1 1.00 $261.04 $145.36 $145.36
247-310-39 2 1.00 $261.04 $145.36 $145.36
TOTALS: 47.00 $6,831.92
Lot # 9 – APN 247-150-64 on the Assessment Roll shown above was purchased by the City to become a storm water lift station. This reduced the assessable units within the District from 49 to 47 beginning in 2017-18. Additionally, the following APN’s are non-assessable, as they receive no benefit from the improvements.

APN 247-310-35 is a City owned drainage/storm water catch basin.

APN 247-310-36 is a City owned park area.

Engineer’s Report
Estates Benefit Assessment District
City of Escalon
Fiscal Year 2025-26

14 APPENDIX B – ASSESSMENT DIAGRAM

Engineer’s Report
Estates Benefit Assessment District
City of Escalon
Fiscal Year 2025-26

15 APPENDIX C – IMPROVEMENT MAP

Resolution xx-25

RESOLUTION NO. XX-25

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ESCALON INITIATING

PROCEEDINGS FOR THE ANNUAL LEVY OF ASSESSMENTS AND ORDERING

THE PREPARATION OF THE ANNUAL ASSESSMENT REPORT FOR THE CITY OF ESCALON ESTATES BENEFIT ASSESSMENT DISTRICT NO. 06-1 FOR FISCAL YEAR 2025/26
WHEREAS, the City Council of the City of Escalon has previously formed a special maintenance district pursuant to the terms of the “Benefit Assessment Act of 1982” (the “1982 Act”), Part 1, Division 2, Title 5 of the California Government Code (commencing with Section 54703). Said special maintenance district has been designated as the Estates Benefit Assessment District No. 06-1 (the “District”), and,
WHEREAS, the City Council has retained Harris & Associates (“Harris”) for the purpose of assisting with the annual levy of the District, and to prepare and file with the City Clerk, the Annual Assessment Report, in accordance with the 1982 Act.

NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:

SECTION 1. ANNUAL ASSESSMENT REPORT: The City Council wishes to initiate proceedings for the preparation of the Annual Assessment Report and hereby orders Harris to prepare and file with the City Clerk, the Annual Assessment Report concerning the annual levy and collection of assessments for the District for the fiscal year commencing July, 1, 2025 and ending June 30, 2026 in accordance with Section 54716 of the 1982 Act.

SECTION 2. PROPOSED IMPROVEMENTS: There are no new improvements or any substantial changes in the existing improvements proposed to be implemented with this Resolution.

EXHIBIT 2

Resolution xx-25

PASSED, APPROVED AND ADOPTED this 7th day of July 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
______________________________
Andrew Hagan, Mayor
ATTEST:
___________________________
MICHELE BATES, Deputy City Clerk

Resolution XX-25

RESOLUTION NO. XX-25

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ESCALON FOR

PRELIMINARY APPROVAL OF THE ANNUAL ASSESSMENT REPORT

REGARDING THE PROPOSED LEVY AND COLLECTION OF ASSESSMENTS FOR THE ESTATES BENEFIT ASSESSMENT DISTRICT NO. 06-1 FOR FISCAL YEAR 2025/26
WHEREAS, the City Council, pursuant to the provisions of the “Benefit Assessment Act of 1982” (the “1982 Act”), being Part 1, Division 2, Title 5 of the California Government Code (commencing with Section 54703) did by previous Resolution, order the preparation of an Annual Assessment Report (the “Report”) for the special maintenance district known and designated as the Estates Benefit Assessment District No. 06-1 (the “District”); and,
WHEREAS, there has now been presented to the City Council the Report as required by Chapter 6.4, Article 4, Section 54716 and 54718 of the 1982 Act; and, WHEREAS, the City Council has carefully examined and reviewed the Report as presented and is preliminarily satisfied with said Report, each and all of the budgets, items and documents as set forth therein and is satisfied that the assessment amounts, on a preliminary basis, have been spread in accordance with the special benefit received from the improvements, operation, maintenance and services to be performed within the District as set forth in said Report.

NOW, THEREFORE BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY COUNCIL FOR THE DISTRICT, AS FOLLOWS:

SECTION 1. That the above recitals are true and correct.

SECTION 2. That the Report as presented, consisting of the following:
a. A Description of Improvements to be maintained and serviced. b. A description of the annual Costs and Expenses of the District. c. The Method of Apportionment of Assessments.
d. An Assessment Roll showing the assessments to be levied against each assessable parcel in the District.
e. A Diagram showing the boundaries of the District.
is hereby approved on a preliminary basis and is ordered to be filed in the office of the City Clerk as a permanent record and to remain open to public inspection.

SECTION 3. That the City Clerk shall certify to the passage and adoption of this Resolution, and the minutes of this meeting shall so reflect the presentation of the Report.

EXHIBIT 3

Resolution XX-25

PASSED, APPROVED AND ADOPTED this 7th day of July 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Andrew Hagan, Mayor
ATTEST:
______
MICHELE BATES, Deputy City Clerk

Resolution XX-25

RESOLUTION NO. XX-25

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ESCALON DECLARING

ITS INTENTION FOR THE LEVY AND COLLECTION OF ANNUAL ASSESSMENTS FOR THE CITY OF ESCALON ESTATES BENEFIT ASSESSMENT DISTRICT NO. 06- 1 FOR FISCAL YEAR 2025/26
WHEREAS, the City Council has by previous Resolutions formed the Estates Benefit Assessment District No. 06-1 (the “District”), and initiated proceedings for Fiscal Year 2025/26, pursuant to the provisions of the “Benefit Assessment Act of 1982” (the “1982 Act”), being Part 1, Division 2, Title 5 of the California Government Code (commencing with Section 54703) that provides for the levy and collection of assessments by San Joaquin County for the District to pay for the costs of maintenance and servicing of all improvements and facilities related thereto; and, WHEREAS, following the May 5, 2025 City Council meeting it was determined necessary to restart the annual assessment collection proceedings to allow time for additional review and preparation of necessary documents, therefore all previous resolutions related to the collection of annual assessments for the District adopted on May 5, 2025 are superseded by the resolutions adopted on July 7, 2025; and,
WHEREAS, the City Council has retained Harris & Associates (“Harris”) for the purpose of assisting with the annual levy of the District and to prepare and file an Annual Assessment Report (the “Report”) in accordance with the 1982 Act.

NOW, THEREFORE BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY COUNCIL, FOR THE DISTRICT, PURSUANT TO ARTICLE 4, SECTION 54718 OF THE 1982 ACT, AS FOLLOWS:

Section 1 Intention: The City Council hereby declares that it is its intention to seek the annual levy of the District pursuant to the 1982 Act for Fiscal Year 2025/26, over and including the land within the District boundary, and to levy and collect assessments on all benefitting land to pay the annual costs of the improvements. The City Council finds that the public’s best interest requires such levy and collection.

Section 2 Report and District Boundaries: The boundaries of the District are described as that area generally north of Narcissus Way, south of APN number 247-150-63, east of McHenry Avenue and west of APN 247-150-36. Please refer to the Report for a complete description of the improvements, the District boundaries, the proposed assessment, and for a District diagram.

Section 3 Description of Improvements: The improvements within the District may include, but are not limited to: street sweeping, storm drainage facilities, including drainage basins and a pump station, and associated appurtenant facilities. Services provided include all necessary service, operations, administration and maintenance required to keep the improvements in proper working order and in satisfactory condition. There are no new improvements or any substantial changes proposed to existing improvements.

EXHIBIT 4

Resolution XX-25

Section 4 Proposed Assessment Amounts: For Fiscal Year 2025/26, the proposed assessments are outlined in the Report.

Section 5 Public Hearing: The City Council hereby declares its intention to conduct a Public Hearing annually concerning the levy of assessments for the District in accordance with Article 4, Section 54718 of the 1982 Act.

Section 6 Notice: The City Council shall give notice of the time and place of the Public Hearing to all property owners within the District by causing the publishing of this Resolution once in the local newspaper not less than ten (10) days before the date of the Public Hearing and by posting a copy of this Resolution on the official bulletin board customarily used by the City for the posting of notices. All interested persons shall be afforded the opportunity to hear and be heard.

Section 7 Notice of Public Hearing: Notice is hereby given that a Public Hearing on these matters will be held by the City Council on Monday, July 21, 2025 at 7:00 p.m. at Escalon City Hall, located at 2060 McHenry Avenue, Escalon.

Section 8 The City Clerk is hereby authorized and directed to give notice of said Public Hearing as provided herein.

PASSED, APPROVED AND ADOPTED this 7th day of July 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
______________________________
Andrew Hagan, Mayor
ATTEST:
___________________________
MICHELE BATES, Deputy City Clerk

ITEM NO. 8

COUNCIL AGENDA ITEM
FOR JULY 7, 2025
Prepared By: Jaylen French, City Manager
Date: June 18, 2025
Subject: Estates Landscape and Lighting Maintenance District No. 06-1, Consideration of Initiating Proceedings for the Levy and Collection of Assessments for Fiscal Year 2025-26
Recommendation:

Adopt the: (1) Resolution Initiating Proceedings for the Annual Levy of Assessments and Ordering the Preparation of Engineer’s Reports for the Estates Landscape and Lighting Maintenance District No. 06-1 for Fiscal Year 2025-26; (2) Resolution for Preliminary Approval of the Engineer’s Report Regarding the Proposed Levy and Collection of Assessments for the Estates Landscape and Lighting Maintenance District No. 06-1 for Fiscal Year 2025-26; and (3) Resolution Declaring the Intention to Levy and Collect the Annual Assessments for the Estates Landscape and Lighting Maintenance District No. 06-1 for Fiscal Year 2025-26.

Strategic Plan Priority:

This action supports Escalon 2025-2026 Strategic Plan Priority #2, Fiscal Stability. Landscape and Lighting Districts (LLDs) provide dedicated revenue for the ongoing maintenance, repair, and replacement of infrastructure and amenities in their respective neighborhoods throughout the City.

Background and Discussion:

This assessment funds the costs of ground cover, shrubs, plants and trees, irrigation, graffiti removal, masonry walls, lighting facilities, neighborhood park landscape maintenance, and associated appurtenant facilities. Services include all necessary service, operation, administration, and maintenance required to keep the above-mentioned improvements in a healthy, vigorous, and satisfactory condition. The assessment district was established in 2006.

For Fiscal Year (FY) 2025-26, the Final Engineer’s Report includes updated language in the sections for the Masonry Wall and Wood Fence (see attached Exhibit 2). The Engineer’s Report also contains updated maintenance and replacement cost estimates to reflect the LLMD’s current costs.

For FY 2025-26, staff has reevaluated and updated the actual cost of services to the District in

establishing the proposed assessment rate. The assessment per single-family residential unit is proposed at $513.88, an increase of $13.86 from the prior year’s assessment of $500.02.

In FY 2025-26, the collection of the Capital Replacement Reserve Fund is proposed for the cost of providing tree trimming service and the eventual replacement of masonry walls related to the development which, due to the costs of replacement, cannot be conveniently raised from a single annual assessment. The purpose of the fund is to gradually collect and accumulate the revenue required to complete all necessary capital replacement ensuring the safe and continued operation of public improvements for property owners to enjoy. The fund also helps to ensure the ability to replace the equipment at the time replacement is needed without having to wait for such funding, which could take several years to raise.

The District’s maximum allowable assessment for FY 2025-26 is $852.05 and is authorized to be increased by the greater of the percentage change in the consumer price index or 3%. The City has levied an annual assessment at a rate less than the maximum authorized assessment. For Fiscal Year 2025-26 the proposed assessment is $513.88, which is approximately 40% lower than the maximum assessment permitted. The City Council retains the discretion to adopt a lower assessment than the proposed assessment.

Assessment History by Fiscal Year
FY 21/22 FY 22/23 FY 23/24 FY 24/25 Proposed FY
25/26
Assessment $ 402.32 $ 407.56 $ 447.04 $ 500.02 $ 513.88 Change $ $ 136.90 $ 5.24 $ 39.48 $ 52.98 $ 13.86
Change % 52% 1% 10% 12% 3%
Comparison of Maximum and Proposed Assessment
Maximum
Assessment
Proposed
FY 25/26
Assessment
$ Below Max % Below
Max
Estates
LLMD $ 852.05 $ 513.88 $ 338.17 40%
Further details and financial analysis are available in the attached Engineer’s Report for FY 2025-26.

Fiscal Impact:

After council approval of the three attached resolutions, a public hearing will be held on July 21, 2025 to approve the FY 2025-26 budget for the Estates Landscape and Lighting Maintenance District No. 06-1 and approve the associated property assessments.

Exhibits:

1. Engineer’s Report FY 2025-26 for Estates Landscape and Lighting Maintenance District No.

06-1

2. Redline Excerpt of Engineer’s Report

3. Resolution Initiating Proceedings for the Annual Levy of Assessments and Ordering the Preparation of Engineer’s Reports for the Estates Landscape and Lighting Maintenance District No. 06-1 for Fiscal Year 2025-26

4. Resolution for Preliminary Approval of the Engineer’s Report Regarding the Proposed Levy and Collection of Assessments for the Estates Landscape and Lighting Maintenance District No. 06-1 for Fiscal Year 2025-26

5. Resolution Declaring the Intention to Levy and Collect the Annual Assessments for the Estates Landscape and Lighting Maintenance District No. 06-1 for Fiscal Year 2025-26

CITY OF ESCALON
FINAL ENGINEER’S REPORT
FISCAL YEAR 2025-26

ESTATES LANDSCAPE AND LIGHTING
MAINTENANCE DISTRICT 06-1
JUNE 2025

PREPARED BY
Harris & Associates
1401 Willow Pass Road, Suite 500
Concord, CA 94520
www.weareharris.com
EXHIBIT 1

Engineer’s Report
Estates Landscape and Lighting Maintenance District
City of Escalon
Fiscal Year 2025-26

TABLE OF CONTENTS
STATEMENT OF ASSESSMENT ENGINEER….……………………………………………………………..1 PART 1 – PLANS AND SPECIFICATIONS……………………………………………………………………..3 PART 2 – ESTIMATE OF COSTS………………………………………………………………………………….4 PART 3 – ASSESSMENT DIAGRAM…………………………………………………………………………….7 PART 4 – METHOD OF APPORTIONMENT………………………………………………………………...8 APPENDIX A – ASSESSMENT ROLL…………………………………………………………………………..13 APPENDIX B – DISTRICT DIAGRAM…………………………………………………………………………..15 APPENDIX C – IMPROVEMENT MAP………………………………………………………………………..16

Engineer’s Report
Estates Landscape and Lighting Maintenance District
City of Escalon
Fiscal Year 2025-26

1 STATEMENT OF ASSESSMENT ENGINEER
AGENCY: CITY OF ESCALON
PROJECT: ESTATES LANDSCAPE AND LIGHTING MAINTENANCE DISTRICT NO. 06-1 TO: THE CITY COUNCIL

CITY OF ESCALON

STATE OF CALIFORNIA
ENGINEER’S REPORT FOR FISCAL YEAR 2025-26
The preparation of this Annual Engineer’s Report (“Report”) is in conformance with the obligation of the City Council for the Estates Landscape and Lighting Maintenance District of the City of Escalon to provide landscaping services upon each lot or parcel of land in the district in proportion to the estimated benefit to be received by each such lot or parcel of land for Fiscal Year 2025-26.

Pursuant to the Landscaping and Lighting Act of 1972 (Part 2 Division 15 of the Streets and Highways Code of the State of California, commencing with Section 22500) (“Act”), Article XIIID, Section 4(a) of the State of California Constitution, and in accordance with the City of Escalon’s Resolution being adopted by the City Council for the:

ESTATES LANDSCAPE AND LIGHTING MAINTENANCE DISTRICT
(Hereinafter referred to as the “District”),
I, Alison Bouley, authorized representative of the District, the duly appointed Assessment Engineer submit the following Report which consists of the following four (4) parts and Appendices:

PART 1
Description of Improvements: This part provides a general description of improvements maintained in the District. Plans and specifications for the improvements are on file with the City and are hereby made a part of this Report by reference.

PART 2
Estimate of Cost: This part contains the cost estimate of the proposed maintenance including incidental costs and expenses for Fiscal Year 2025-26.

PART 3
District Diagram: This part incorporates a Diagram of the District showing the external boundaries of the District. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the San Joaquin County Assessor for the year in which this Report was prepared and are incorporated by reference herein and made part of this Report. A copy of the District Diagram is included in Appendix B and has also been filed under separate cover with the office of the City Clerk.

Engineer’s Report
Estates Landscape and Lighting Maintenance District
City of Escalon
Fiscal Year 2025-26

2 PART 4
Method of Apportionment of the Assessments: This part describes the method of apportionment of assessments, based upon parcel classification of land within the District in proportion to the estimated special benefits received. The costs and expenses of the District have been assessed upon the parcels of land within the boundaries of District pursuant to the initial methodology established Resolution No. 32-06 approved on the 17th day of July, 2006. For particulars as to the identification of parcels, reference is made to the District Diagram.

Appendices
Appendix A – Assessment Roll
Appendix B – District Diagram
Appendix C – Improvement Map
In conclusion, it is my opinion that the costs and expenses of the District have been assessed to the lots and parcels within the boundaries of the District in proportion to the estimated benefits to be received by each lot or parcel from the services provided.

DATED this 19th day of May, 2025
___________________________________________
Alison Bouley, P.E., Assessment Engineer
R.C.E. No. C61383
Engineer of Work

Engineer’s Report
Estates Landscape and Lighting Maintenance District
City of Escalon
Fiscal Year 2025-26

3 PART 1 – PLANS AND SPECIFICATIONS
The District was formed to provide a funding mechanism to ensure the ongoing operation, maintenance and servicing of certain landscape and lighting improvements within the boundaries of the District. Said improvements are detailed below under “Improvements and Services Provided”.

The Estates Landscape Maintenance District No. 06-1 is within the boundaries of the City and is located north of Narcissus Way, south of APN number 247-150-63, east of McHenry Avenue and west of APN 247-150-36.

The District is comprised of the residential development known as The Estates and consists of thirty-four developed single family residential parcels and four commercial parcels, three of which are currently developed.

The plans and specifications for the improvements, showing the general nature, location, and the extent of the improvements, are on file in the office of the City Clerk and are incorporated herein by reference.

IMPROVEMENTS AND SERVICES PROVIDED
The following are the specific improvements maintained and serviced within the District are:
• Maintenance and utility costs for 14 streetlights located throughout the interior and exterior of the tract. • Landscape maintenance along the Narcissus Way and McHenry Avenue frontages, including street trees in wells.
• Masonry wall maintenance at the back (east side) of the commercial lots. • Maintenance and trimming for 18 Street trees along interior streets of the tract. • Graffiti abatement on exterior masonry walls of tract. • Landscape maintenance in the neighborhood park located at 1568 Narcissus Way. • Utilities including water and electricity for landscaping and lighting. • Shared wood fence along Narcissus Way.*
• White picket fence in Estates Park.*
* The shared wood fence and white picket fence were installed as part of the development and should have been included with the other improvements at the time of formation. These were added to the list of Improvements in 2024, to ensure future maintenance and replacement.

Reference is made to the plans and specifications for the improvements on file in the office of the City Clerk and are incorporated herein by reference.

Engineer’s Report
Estates Landscape and Lighting Maintenance District
City of Escalon
Fiscal Year 2025-26

4 PART 2 – ESTIMATE OF COST
The estimated budget for the annual maintenance and servicing of the improvements and the proportionate share of administration costs of the District have been prepared based on the estimated and recent historical costs of the District.

The 2025-26 District budget is shown below.

ESTIMATE OF COST
The 1972 Act requires that a special fund be set-up for the revenues and expenditures of the District. Funds raised by assessment shall be used only for the purpose as stated herein. A contribution to the District by the City may be made to reduce assessments or to fund costs which are greater than revenue from the assessments, as the City Council deems

DIRECT COSTS
Utility – Water (based on prior year consumptions w/current rates) $3,592.00 Sidewalk Repair from Street Tree Damage 170.00
Public Works Maintenance White Picket Fence in Estates Park 150.00 Contract Services – Street Lights (14 lights @ avg. of $12.15 each – monthly) 2,041.00 Contract Services – Park Maintenance ($670.00 monthly contract plus incidentals) 8,040.00 (ex: tree maintenance, replacement, sprinkler repairs, etc.) Professional Services – Public Works (inspection, repairs & maintenance) 275.00 Property Tax Charges 228.00
Direct Costs Sub-Total $14,496.00

CAPITAL REPLACEMENT COSTS
The Estates Comprehensive Street Tree Trimming 1,000.00 Masonry Wall Replacement Between Commercial & Subdivision (430') 1,100.00 Shared Wood Fences Along Narcissus Way (420') 500.00
Capital Replacement Costs Sub-Total $2,600.00

ADMINISTRATIVE COSTS
Professional Services – Engineer (Harris & Assoc. charge of $258.75 per quarter) $1,035.00 Public Mail Notice ($1.50 per parcel) 57.00
General Government Charge (City admin fee – See Descriptions below) 657.00 County Administration Fee (See Descriptions below) 102.00 Rounding Adjustment (to make an even penny for tax roll purposes) 0.44 Administrative Costs Sub-Total $1,851.44
SUBTOTAL DIRECT,CAPITAL AND ADMINISTRATIVE COSTS $18,947.44 Operating Reserve Collection/(Reduction) 580.00
TOTAL BALANCE TO ASSESSMENT $19,527.44
Total Assessable Parcels/Units 38
ASSESSMENT PER PARCEL/EDU $513.88

Engineer’s Report
Estates Landscape and Lighting Maintenance District
City of Escalon
Fiscal Year 2025-26

5 appropriate. Any balance or deficit remaining on July 1 must be carried over to the next fiscal year. Estimated beginning and ending fund balances for Fiscal Year 2025-26 are shown in the following table.

Section 22569 (a) of the 1972 Act allows the District assessments to “…include a reserve which shall not exceed the estimated costs of maintenance and servicing to December 10 of the fiscal year, or whenever the city expects to receive its apportionment of special assessments and tax collections from the county, whichever is later.

DISTRICT FUND BALANCES
* In order to collect sufficient funding for the Capital Replacement items shown in the Budget table, the District will be assessing increases annually for the next four to five years. This will bring the assessment rate to a sufficient level without over-burdening property owners with a large increase in a single year.

DESCRIPTION OF COST ESTIMATE ITEMS
• Utility – Water: The costs to provide water utilities for the landscaping improvements within the District. • Contract Services – Street Lights: The contracting costs associated with the Modesto Irrigation District to provide electricity for illumination and maintenance of the streetlights and poles within the District. • Contract Services – Park Maintenance: The contracting costs associated with a landscaping contractor to perform the landscape maintenance duties associated with the improvements within the District. The District had a change in the landscape contract in March 2021 that included a significate increase. The prior contract had been in place since the inception of the District (2006), with no increase. The current monthly contract is $670 with additional incidentals.
• Professional Services Special – Public Works: Costs associated with individuals within the Public Works Department who contribute time to inspection of the improvements, necessary repairs and other maintenance.

The City has budgeted to minor sidewalk repairs during the 2022-23 fiscal year, as shown on the budget page.

OPERATING FUND
Estimated Reserve Fund Beginning Balance as of July 1, 2025 4,646.00 Operating Reserve Collection – Fiscal Year 2025-26 580.00 Interest Revenue 304.00
Estimated Reserve Fund Balance Ending June 30, 2026 $5,530.00

CAPITAL REPLACEMENT FUND
Capital Replacement Fund Balance as of July 1, 2025 $0.00 Capital Replacement Collections – Fiscal Year 2025-26 $2,600.00 Interest Revenue $0.00
Estimated Capital Replacement Fund Balance Ending June 30, 2026 $2,600.00

Engineer’s Report
Estates Landscape and Lighting Maintenance District
City of Escalon
Fiscal Year 2025-26

6 • Professional Services – Engineer: The contracting costs associated with hiring a consultant to manage and perform the annual administration duties of the District. These services include preparation of reports, resolutions, assessment rolls and budgets; preparation and placement of assessment amounts onto the County tax rolls; parcel tracking and upkeep of the District database; answering questions for City staff and property owners; and finally, act as an expert resource in matters related to the District. • General Government Charge: Costs associated with individual City Staff and Management (City Clerk, City Council, City Manager, Finance Director, City Engineer, etc.) who contribute time to the annual administration and oversight of the District. This may include but is not limited to, preparation for and attendance of meetings, preparation and posting of public notices, budgeting, inspection, etc. This cost is calculated based on an allocation plan accepted by the City Council in June 2018, prepared by Clear Source Financial. • County Administration Fee – The County costs related to placement of the annual assessment charges onto the tax roll and the generation of annual tax bills related thereto. This charge is the lesser of $3.00 per parcel or 1% of the total levy amount submitted per District.
• Operating Reserve Collection/(Contribution) – This item shows any collections which adds to the Operating Reserve Fund balance, or contributions made from the Operating Reserve Fund, to offset the annual budget. • Estimated Reserve Fund Balances – These items show the estimated Operating Reserve Fund amounts at the beginning and end of the fiscal year. The estimated ending balance reflects any collections or reductions from the estimated beginning balance.

DESCRIPTION OF CAPITAL REPLACEMENT ITEMS
• Masonry Wall: Funds collected on an annual basis for the eventual replacement of the masonry wall between the subdivision and the commercial parcels. The wall has a finite life span and will require replacement after approximately 50 years. The wall was installed as part of the development in 2006 and will likely need replacement within the next 32 years. The replacement cost estimate is $85,400, in 2024 dollars. To account for inflation over the next thirty-two years, 2% has been added to the annual collection amount. This percentage will be re-evaluated occasionally to determine if an adjustment to the annual collections is necessary. The estimated full replacement cost in 2066 is estimated at $196,185. • Wood Fence: Funds collected on an annual basis for the eventual replacement of the wood fence along Narcissus Way. The fence has a finite life span and will require replacement after approximately 20 years. Th fence was installed as part of the development in 2006 and will likely need replacement within the next 5 years.

The replacement cost estimate is $20,800, in 2024 dollars. To account for inflation over the next 5 years, 2% has been added to the annual collection amount. This percentage will be re-evaluated occasionally to determine if an adjustment to the annual collections is necessary. The estimated full replacement cost in 2029 is $22,965.

Engineer’s Report
Estates Landscape and Lighting Maintenance District
City of Escalon
Fiscal Year 2025-26

7 PART 3 – ASSESSMENT DIAGRAM
A diagram showing the exterior boundaries of the District and the lines and dimensions of each lot or parcel of land within the District has been submitted to the office of the City Clerk of the City of Escalon and is hereby made a part hereof by reference.

A copy of the assessment diagram for the District is included in Appendix B of the Report.

Engineer’s Report
Estates Landscape and Lighting Maintenance District
City of Escalon
Fiscal Year 2025-26

8 PART 4 – METHOD OF APPORTIONMENT
General
Streets and Highways Code Section 22573 requires that maintenance assessments be levied according to benefit rather than according to assessed value. This section states:
“The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.”
— Streets and Highways Code Section 22573
Definitions from Streets and Highways Code:

Section 22525 “Improvement” means one or any combination of the following:
(a) Installation and planting of landscaping
(b) The installation and construction of statuary, fountains and other ornamental structures and facilities. (c) The installation and construction of public lighting facilities, including but not limited to traffic signals. (d) The installation or construction of any facilities which are appurtenant to any of the foregoing or which are necessary or convenient for the maintenance and servicing thereof, including, but not limited to grading, clearing, removal of debris, the installation or construction of curbs, gutters, sidewalks, walls or paving, or water, irrigation, drai9nage or electrical facilities.
(e) The installation of parks or recreational improvements, including, but not limited to all of the following:
• Land preparation such as grading, leveling, cutting and filling, sod, landscaping, irrigation systems, sidewalks and drainage
• Lights, playground equipment, play courts and public restrooms (f) The maintenance or servicing or both, of any of the foregoing, and any improvement authorized by subdivision (i). (g) The acquisition of land for park, recreational or open space purposes. (h) The acquisition of any existing improvement otherwise authorized pursuant to this section. (i) The acquisition or construction of any community center, municipal auditorium or hall, or similar public facility for the indoor presentation or performances, shows, stage productions, fairs, conventions, exhibitions, pageants, meetings, parties or other group activities or functions, whether such, activities or functions are public or private.

Section 22526 “Incidental Expenses” include all of the following:
(a) The costs and preparation of the report, including plans, specifications, estimates, diagrams and assessment. (b) The costs of printing, advertising and giving of published, posted and mailed notices. (c) Compensation payable to the county for the 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 Section 22662.5 of the Act. (g) Any costs associated with any elections held for the approval of a new or increased assessment.

Engineer’s Report
Estates Landscape and Lighting Maintenance District
City of Escalon
Fiscal Year 2025-26

9 Section 22531 “Maintain” or “maintenance” include means the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of any improvement, including:
(a) Repair, removal or replacement of all or any part of any improvement (b) Providing for the life, growth, health and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing or treating for disease and injury. (c) The removal of trimmings, rubbish, debris and other solid waste. (d) The cleaning, sandblasting and painting of walls and other improvements to remove or cover graffiti.

The 1972 Act permits the designation of areas of benefit within any individual assessment district if "by reason of variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvements." (Sec. 22574). Thus, the 1972 Act requires the levy of a true "assessment" rather than a "special tax." In November 1996, the voters of California adopted Proposition 218, which has been codified as Articles XIIIC and XIIID of the California Constitution. Proposition 218 imposed a number of substantive and procedural requirements on taxes, assessments, and property-related fees imposed by local governments in California.

The method of apportionment described in this Report, and confirmed by the City Council, utilizes commonly accepted engineering practices established pursuant to the 1972 Act and the California Constitution for the allocation of special benefit assessments. The calculation of assessments is based upon the parcel type and the services and improvements provided to equitably apportion the costs based on the special benefit received by each lot or parcel. The special benefit received by each lot or parcel is over and above any general benefit conferred upon said lots or parcels or to the public at large.

SPECIAL BENEFIT
The improvements and associated costs have been allocated to the assessable properties within the District based upon the special benefit received by those properties. The improvements for which the properties are assessed have been identified as necessary, were installed and are being maintained as part of the development plans specifically for each tract. As such, the improvements and continuing maintenance and servicing of those improvements are strictly the obligation of the properties within the District.

General Benefit
Although the improvements may be visible to passersby or to the public at large, the improvements were installed as a requirement of the development of the tract and are for the sole benefit of properties within the District. It has been determined therefore, any access or use by properties or individuals outside the District is completely incidental and the costs of operating, maintaining, and servicing said improvements therefore provides no measurable benefit to outside properties or individuals.

Definition of Special Benefit
The method of apportionment described in this Report is based on the premise that each assessable parcel or unit receives distinct and special benefits from the improvements and services provided, including the visual desirability provided by well-maintained landscaping. In accordance with Article XIII D, Section 4 of the California Constitution:
“Special benefit means a particular and distinct benefit over and above general benefits conferred on real property located in the District or the public at large”

Engineer’s Report
Estates Landscape and Lighting Maintenance District
City of Escalon
Fiscal Year 2025-26

10 The special benefits associated with local landscaping improvements are specifically:
• Enhanced desirability of properties due to proximity and accessibility of the improvements. • Improved aesthetic appeal provided by a positive representation of the development, neighborhood, and the community.
• Improved accessibility for emergency vehicles.
• Reduced vandalism and other criminal activity.

ASSESSMENT RANGE FORMULA
It is generally recognized that most budgetary items will be impacted by inflation in future years. In accordance with the California Constitution, Section 53739 (b)(1), assessments “may be adjusted for inflation pursuant to a clearly defined formula…” A formula for an inflationary adjustment is therefore included as part of the maximum assessment for this District. Said inflationary adjustment was authorized by the City Council and approved by the property owner(s) at the time of formation. The formula, as described below, allows for annual adjustments to the budget and the assessments.

To impose a new assessment or increased assessment in excess of the Maximum Assessment Rate for the current fiscal year as provided by the preceding Assessment Range Formula, the City must comply with the provisions of the California Constitution, Article XIII D, Section 4c that requires a public hearing and certain protest procedures, including mailed notice of the public hearing and property owner protest balloting. Property owners must approve the proposed new or increased assessment via a property owner protest ballot process before any such new or increased assessment can be imposed. A protest occurs when, at the public hearing, the returned assessment ballots opposed to the new or increased assessment outweigh the returned ballots in favor of the new or increased assessment, weighted according to the financial obligation of each parcel.

The definition of new or increased assessments includes any assessment which, 1) did not previously exist or, 2) exceeds a previously approved assessment amount or assessment range formula. Any assessment range formula must have been previously adopted by the agency and approved by the property owners.

ASSESSMENT METHODOLOGY
The benefit formula used to determine the financial obligation for each parcel is based on the improvements benefitting the parcels, as well as the use, or type, of each parcel that benefits from said improvements. One of the more common approaches to fairly distributing District costs in maintenance districts such as this utilizes a methodology referred to as the “Equivalent Dwelling Unit” (“EDU”) method of apportionment. This method utilizes various property characteristics such as type of development (land-use) and size (units or acreage) to compare the proportional benefit of each property compared to other properties benefitting from the improvements.

The District is comprised entirely of residential parcels. Each residential parcel receives similar benefit from the improvements due to the relative size of the properties, the specific improvements and proximity of the improvements to the properties. Because the property characteristics are identical within the District, each parcel has been assigned an EDU value of one (“1”). The total number of units is divided into the “Total Balance to Assessment”, (as shown in Part 3 of this Report) to determine the annual assessment rate per parcel/unit.

Engineer’s Report
Estates Landscape and Lighting Maintenance District
City of Escalon
Fiscal Year 2025-26

11 The initial maximum assessment for this District was established at the time of formation and was assessed for the first time during the 2006-07 fiscal year. That initial maximum assessment was $445.06 per Equivalent Dwelling Unit (“EDU”).

This initial maximum assessment has been adjusted each subsequent fiscal year by the following Assessment Range Formula:
• The Maximum Assessment Rate allowed each fiscal year (the “Adjusted Maximum Assessment Rate”) shall be based on the initial maximum assessment established in Fiscal Year 2006-07, adjusted annually by the greater of the Bureau of Labor Statistics, Consumer Price Index for the month of April, All Urban Consumers, (“CPI”) for the San Francisco/Oakland/San Jose area or three percent (3%). Should the Bureau of Labor Statistics revise or discontinue the preparation of such index, the City reserves the right to use such revised index or a comparable system to determine fluctuations in the annual cost of living. • Each fiscal year, the greater of CPI or 3% shall be applied to the Maximum Assessment Rate established the previous fiscal year to calculate the appropriate Adjusted Maximum Assessment Rate for the current fiscal year. • If the proposed annual assessment rate (levy per EDU) for the upcoming fiscal year is less than or equal to the Adjusted Maximum Assessment Rate established for that fiscal year then the proposed annual assessment is not considered an increased assessment.

Beginning in the second fiscal year after the formation of the District (2007-08) and each fiscal year since, the Maximum Assessment Rate has been recalculated and a new Maximum Assessment Rate has been established for each fiscal year using the Assessment Range Formula described above. Based on the actual April CPI, shown in the table below, the Maximum Assessment Rate for the upcoming fiscal year (2025-26) shall be $835.82. The Adjusted Maximum Assessment Rate has been calculated independent of the annual budget and proposed assessment rate for the given fiscal year. As stated above, if the proposed annual assessment for any fiscal year does not exceed the Adjusted Maximum Assessment Rate for that year, it is not considered to be an increased assessment under the terms of Proposition 218.

The table on the following page shows the April CPI, the Allowable Increase, the Adjusted Maximum Assessment and the Actual Annual Assessment each year since the formation of the District:

Engineer’s Report
Estates Landscape and Lighting Maintenance District
City of Escalon
Fiscal Year 2025-26

12 The District is comprised of two parcel types, residential and commercial. The residential parcels are single-family residential parcels (“SFR”) and as such are deemed to receive equal benefit from the improvements. Each SFR parcel therefore is assigned 1 unit per parcel or 1 EDU. Each commercial parcel also receives similar benefit from the improvements due to their relatively small size and proximity to the improvements. The total EDU is then divided into the “Total Balance to Assessment” to determine the annual assessment rate. The EDU for each parcel is then multiplied by the annual assessment rate to determine the annual assessment for each parcel.

Fiscal April Allowable CPI Adjusted Max. Actual
Year CPI % Increase Calculation Assessment Assessment
2006-07 N/A N/A N/A $445.06 $222.52
2007-08 3.30% 3.30% 1.033231211 $459.85 $459.30
2008-09 2.90% 3.00% 1.030000000 $473.65 $473.52
2009-10 0.80% 3.00% 1.030000000 $487.85 $348.74
2010-11 1.70% 3.00% 1.030000000 $502.49 $180.80
2011-12 2.80% 3.00% 1.030000000 $517.57 $0.00
2012-13 2.10% 3.00% 1.030000000 $533.09 $0.00
2013-14 2.40% 3.00% 1.030000000 $549.08 $47.38
2014-15 2.80% 3.00% 1.030000000 $565.56 $183.88
2015-16 2.40% 3.00% 1.030000000 $582.52 $205.26
2016-17 2.70% 3.00% 1.030000000 $600.00 $231.66
2017-18 3.78% 3.78% 1.037888610 $622.73 $217.68
2018-19 3.21% 3.21% 1.032168077 $642.77 $221.28
2019-20 4.00% 4.00% 1.040148612 $668.57 $245.88
2020-21 3.00% 3.00% 1.030003290 $688.63 $265.42
2021-22 3.80% 3.80% 1.038061018 $714.84 $402.32
2022-23 4.99% 4.99% 1.049961379 $750.55 $407.56
2023-24 4.19% 4.19% 1.041917274 $782.02 $447.04
2024-25 3.77% 3.77% 1.037669574 $811.47 $500.02
2025-26 3.00% 3.00% 1.030000000 $835.82 $513.88

Engineer’s Report
Estates Landscape and Lighting Maintenance District
City of Escalon
Fiscal Year 2025-26

13 APPENDIX A – ASSESSMENT ROLL
Parcel Identification for each lot or parcel within the District shall be based on available parcel maps and other property data from the San Joaquin County Assessor’s office as they existed at the time this Report was prepared and adopted by the City Council.

A listing of parcels assessed within the District for Fiscal Year 2025-26, along with the corresponding assessment amounts, is included below. If any parcel submitted for collection is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, a corrected parcel number and/or new parcel numbers will be identified and resubmitted to the County Auditor/Controller. The assessment amount to be levied and collected for the resubmitted parcel(s) shall be based on the method of apportionment and assessment rate approved in this Report. Therefore, if a single parcel has changed to multiple parcels, the assessment amounts applied to each of the new parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment.

Non-assessable lots or parcels include areas of public streets and other roadways (typically not assigned an APN by the County); dedicated public easements, open space areas and rights-of-way, including public greenbelts and parkways; utility rights-of-way; common areas; landlocked parcels; small parcels vacated by the County, bifurcated lots and any other property that cannot be developed or has specific development restrictions. These types of parcels are considered to receive little or no benefit from the improvements and are therefore, exempted from assessment.

APN
Lot
Number Units
2025-26
Maximum
Assessment Rate
2025-26
Approved
Assessment Rate
2025-26
Actual
Assessment Rate
247-150-64 9 0.00 $835.82 $513.88 $0.00
247-150-65 Por. of 16 1.00 $835.82 $513.88 $513.88
247-150-66 Por. of 16 1.00 $835.82 $513.88 $513.88
247-150-67 Por. of 16 1.00 $835.82 $513.88 $513.88
247-310-03 3 1.00 $835.82 $513.88 $513.88
247-310-04 4 1.00 $835.82 $513.88 $513.88
247-310-05 5 1.00 $835.82 $513.88 $513.88
247-310-06 6 1.00 $835.82 $513.88 $513.88
247-310-07 7 1.00 $835.82 $513.88 $513.88
247-310-08 8 1.00 $835.82 $513.88 $513.88
247-310-09 9 1.00 $835.82 $513.88 $513.88
247-310-10 10 1.00 $835.82 $513.88 $513.88
247-310-11 11 1.00 $835.82 $513.88 $513.88
247-310-12 12 1.00 $835.82 $513.88 $513.88
247-310-13 13 1.00 $835.82 $513.88 $513.88
247-310-14 14 1.00 $835.82 $513.88 $513.88
247-310-15 15 1.00 $835.82 $513.88 $513.88

Engineer’s Report
Estates Landscape and Lighting Maintenance District
City of Escalon
Fiscal Year 2025-26

14 APN
Lot
Number Units
2025-26
Maximum
Assessment Rate
2025-26
Approved
Assessment Rate
2025-26
Actual
Assessment Rate
247-310-16 16 1.00 $835.82 $513.88 $513.88
247-310-17 17 1.00 $835.82 $513.88 $513.88
247-310-18 18 1.00 $835.82 $513.88 $513.88
247-310-19 19 1.00 $835.82 $513.88 $513.88
247-310-20 20 1.00 $835.82 $513.88 $513.88
247-310-21 21 1.00 $835.82 $513.88 $513.88
247-310-22 22 1.00 $835.82 $513.88 $513.88
247-310-23 23 1.00 $835.82 $513.88 $513.88
247-310-24 24 1.00 $835.82 $513.88 $513.88
247-310-25 25 1.00 $835.82 $513.88 $513.88
247-310-26 26 1.00 $835.82 $513.88 $513.88
247-310-27 27 1.00 $835.82 $513.88 $513.88
247-310-28 28 1.00 $835.82 $513.88 $513.88
247-310-29 29 1.00 $835.82 $513.88 $513.88
247-310-30 30 1.00 $835.82 $513.88 $513.88
247-310-31 31 1.00 $835.82 $513.88 $513.88
247-310-32 32 1.00 $835.82 $513.88 $513.88
247-310-33 33 1.00 $835.82 $513.88 $513.88
247-310-34 34 1.00 $835.82 $513.88 $513.88
247-310-35 A 0.00 $835.82 $513.88 $0.00
247-310-36 B 0.00 $835.82 $513.88 $0.00
247-310-37 Por. of 1 1.00 $835.82 $513.88 $513.88
247-310-38 Por. of 1 1.00 $835.82 $513.88 $513.88
247-310-39 2 1.00 $835.82 $513.88 $513.88
TOTALS: 38.00 $19,527.44
Lot # 9 – APN 247-150-64 on the Assessment Roll shown above was purchased by the City to become a storm water lift station. This reduced the assessable units within the District from 39 to 38 beginning in 2017-18. Additionally, the following APN’s are non-assessable, as they receive no benefit from the improvements.

APN 247-310-35 is a City owned drainage/storm water catch basin.

APN 247-310-36 is a City owned park area.

Engineer’s Report
Estates Landscape and Lighting Maintenance District
City of Escalon
Fiscal Year 2025-26

15 APPENDIX B – ASSESSMENT DIAGRAM

Engineer’s Report
Estates Landscape and Lighting Maintenance District
City of Escalon
Fiscal Year 2025-26

16 APPENDIX C – IMPROVEMENT MAP

EXHIBIT 2
The Estates LLMD
Redline Changes from FY 2024/25 Final Engineer’s Report to FY 2025/26 Final Engineer’s Report (Page 6)

MASONRY WALL
Masonry Wall: Funds collected on an annual basis for the eventual replacement of the masonry wall between the subdivision and the commercial parcels. The wall has a finite life span and will require replacement after approximately 50 years. The wall was installed as part of the development in 2006 and will likely need replacement within the next 32 years. The replacement cost estimate is $85,400, in 2024 dollars. To account for inflation over the next thirty-two years,

64.0% (at 2% annually) has been added to the annual collection amount. In the year 2066, the costs to replace the equipment will have increased by an estimated 64.0%, based on a 2% annual inflator. This percentage will be re-evaluated occasionally to determine if an adjustment to the annual collections is necessary. The estimated full replacement cost in 2066 is estimated at $140,000196,185.

WOOD FENCE
Wood Fence: Funds collected on an annual basis for the eventual replacement of the wood fence along Narcissus Way. The fence has a finite life span and will require replacement after approximately 20 years. The fence was installed as part of the development in 2006 and will likely need replacement within the next 5 years. The replacement cost estimate is $20,800, in 2024 dollars. To account for inflation over the next 5 years, 10.02% has been added to the annual collection amount. In the year 2026, the costs to replace the equipment will have increased by an estimated 10.0%, based on a 2% annual inflator. This percentage will be re-evaluated occasionally to determine if an adjustment to the annual collections is necessary. The estimated full replacement cost in 2029 is $22,88022,965.

Resolution XX-25

RESOLUTION NO. XX-25

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ESCALON INITIATING

PROCEEDINGS FOR THE ANNUAL LEVY OF ASSESSMENTS AND ORDERING

THE PREPARATION OF ANNUAL ASSESSMENT REPORTS FOR THE CITY OF ESCALON’S THE ESTATES LANDSCAPE AND LIGHTING MAINTENANCE DISTRICT NO. 06-1 FOR FISCAL YEAR 2025/26
WHEREAS, the City Council of the City of Escalon has previously formed a special maintenance district pursuant to the terms of the “Landscaping and Lighting Act of 1972” (the 1972 Act”), being Division 15, Part 2 of the Streets and Highways Code of the State of California (commencing with Section 22500). Said special maintenance district is known and identified as the Estates Landscape and Lighting Maintenance District No. 06-1 (hereafter referred to as the “District”); and,
WHEREAS, the City Council has retained Harris & Associates (“Harris”) for the purpose of assisting with the annual levy of the District and to prepare and file with the City Clerk, the Annual Assessment Report (“Report”) for the District in accordance with the 1972 Act.

NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS:

SECTION 1. ANNUAL ASSESSMENT REPORT: The City Council wishes to initiate proceedings for the preparation of the Annual Assessment Report and hereby orders Harris to prepare and file with the City Clerk, the Report concerning the annual levy and collection of assessments for the District. Said levy and collection shall be for the fiscal year commencing July, 1, 2025 and ending June 30, 2026 in accordance with Chapter 3, Section 22622 of the 1972 Act.

SECTION 2. IMPROVEMENTS: There are no new improvements or any substantial changes in the existing improvements proposed to be implemented with this Resolution.

EXHIBIT 3

Resolution XX-25

PASSED, APPROVED AND ADOPTED this 7th day of July 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
______________________________
Andrew Hagan, Mayor
ATTEST:
___________________________
MICHELE BATES, Deputy City Clerk

Resolution XX-25

RESOLUTION NO. XX-25

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ESCALON FOR

PRELIMINARY APPROVAL OF THE ANNUAL ASSESSMENT REPORT

REGARDING THE PROPOSED LEVY AND COLLECTION OF ASSESSMENTS

FOR THE ESTATES LANDSCAPE AND LIGHTING MAINTENANCE
DISTRICT NO. 06-1 FOR FISCAL YEAR 2025/26
WHEREAS, the City Council, pursuant to the provisions of the “Landscape and Lighting Act of 1972” (the “1972 Act”), being Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) did by previous Resolution, order the preparation of an Annual Assessment Report (the “Report”) for the special maintenance district known and designated as the Estates Landscape and Lighting Maintenance District No. 06-1 (the “District”); and,
WHEREAS, there has now been presented to the City Council the Report as required by Chapter 1, Article 4, Section 22566 of the 1972 Act; and, WHEREAS, the City Council has carefully examined and reviewed the Report as presented and is preliminarily satisfied with said Report, each and all of the budgets items and documents as set forth therein and is satisfied that the assessment amounts, on a preliminary basis, have been spread in accordance with the special benefit received from the improvements, operation, maintenance and services to be performed within the District as set forth in said Report.

NOW, THEREFORE BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY COUNCIL, FOR THE DISTRICT, AS FOLLOWS:

SECTION 1. That the above recitals are true and correct.

SECTION 2. That the Report as presented, consisting of the following:
a. A Description of Improvements to be maintained and serviced. b. A description of the annual Costs and Expenses of the District. c. The Method of Apportionment of Assessments.
d. An Assessment Roll showing the assessments to be levied against each assessable parcel in the District.
e. A Diagram showing the boundaries of the District.
is hereby approved on a preliminary basis and is ordered to be filed in the office of the City Clerk as a permanent record and to remain open to public inspection.

SECTION 3. That the City Clerk shall certify to the passage and adoption of this Resolution, and the minutes of this meeting shall so reflect the presentation of the Report.

EXHIBIT 4

Resolution XX-25

PASSED, APPROVED AND ADOPTED this 7th day of July 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Andrew Hagan, Mayor
ATTEST:

MICHELE BATES, Deputy City Clerk

Resolution XX-25

RESOLUTION NO. XX-25

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ESCALON DECLARING

ITS INTENT FOR THE LEVY AND COLLECTION OF ANNUAL ASSESSMENTS FOR THE ESTATES LANDSCAPE AND LIGHTING MAINTENANCE DISTRICT NO. 06-1 FOR FISCAL YEAR 2025/26
WHEREAS, the City Council has by previous Resolutions formed said special maintenance district and has initiated proceedings for Fiscal Year 2025/26, pursuant to the provisions of the “Landscaping and Lighting Act of 1972” (the “1972 Act”), being Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) that provides for the levy and collection of assessments by San Joaquin County to pay for the annual maintenance and servicing costs of all improvements and facilities related thereto. Said special maintenance district is known and identified as the Estates Landscape and Lighting Maintenance District No. 06-1 (hereafter referred to as the “District”); and, WHEREAS, following the May 5, 2025 City Council meeting it was determined necessary to restart the annual assessment collection proceedings to allow time for additional review and preparation of necessary documents, therefore all previous resolutions related to the collection of annual assessments for the District adopted on May 5, 2025 are superseded by the resolutions adopted on July 7, 2025; and,
WHEREAS, the City Council has retained Harris & Associates (“Harris”) for the purpose of assisting with the annual levy of the District and to prepare and file an Annual Assessment Report (the “Report”) for the District, in accordance with the 1972 Act; and, WHEREAS, upon review of the estimated costs of certain improvements it has been determined that such costs are greater than what can be conveniently raised from a single year’s annual assessment, therefore the City Council finds it necessary to collect assessments to cover the costs of certain improvements in installments over a period not to exceed 30 years pursuant to section 22660(b) of the 1972 Act.

NOW, THEREFORE BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY COUNCIL, FOR THE DISTRICT, PURSUANT TO CHAPTER 3, SECTION 22624 OF THE 1972 ACT, AS FOLLOWS:

Section 1 Intention: The City Council hereby declares that it is its intention to seek the annual levy of the District pursuant to the 1972 Act for Fiscal Year 2025/26, over and including the land within the District boundaries and to levy and collect assessments on all benefitting land to pay the annual costs of the maintenance and servicing of the improvements located within the District. The City Council finds that the public’s best interest requires such levy and collection.

Section 2 Report and District Boundaries: The boundaries of the District are described in the Report, on file with the City Clerk and incorporated herein by this reference. Please refer to the Report for a full and complete description of the improvements, the specific boundaries of the District, the proposed assessments, and diagram.

EXHIBIT 5

Resolution XX-25

Section 3 Description of Improvements: The improvements within the District may include, but are not limited to: turf, shrubs, plants and trees, landscaping, street lighting, irrigation and drainage systems, graffiti removal, pedestrian walkways, landscape lighting, masonry walls and monumentation, and associated appurtenances within the public rights-of-way or specific easements. Services provided include all necessary service, operations, administration and maintenance required to keep the improvements in a healthy, vigorous and/or satisfactory operating condition. There are no new improvements or any substantial changes proposed to existing improvements.

Section 4 Proposed Assessment Amounts: For Fiscal Year 2025/26, the proposed assessments are shown in the Report. Said Report also details any changes or increases in the annual assessments. The assessments are not proposed to be increased from the previous year.

Section 5 Installment Assessments: The City Council finds it necessary to collect assessments for the purpose of funding certain improvements which cannot be conveniently raised from a single year’s annual assessment, therefore the City Council finds it necessary to collect assessments to cover the costs of certain improvements in installments over a period not to exceed 30 years pursuant to section 22660(b) of the 1972 Act. The information related to the installment assessments is attached as Exhibit “A” hereto and is incorporation herein be this reference.

Section 6 Public Hearing: The City Council hereby declares its intention to conduct a Public Hearing annually concerning the levy of assessments for the District in accordance with Chapter 3, Section 22626 of the 1972 Act.

Section 7 Notice: The City Council shall give notice of the time and place of the Public Hearing to all property owners within the District by causing the publishing of this Resolution once in the local newspaper not less than ten (10) days before the date of the Public Hearing and by posting a copy of this Resolution on the official bulletin board customarily used by the City for the posting of notices. All interested persons shall be afforded the opportunity to hear and be heard.

Section 8 Notice of Public Hearing: Notice is hereby given that a Public Hearing on these matters will be held by the City Council on Monday, July 21, 2025 at 7:00 p.m. at Escalon City Hall, located at 2060 McHenry Avenue, Escalon.

Section 9 The City Clerk is hereby authorized and directed to give notice of said Public Hearing as provided by the 1972 Act.

Resolution XX-25

PASSED, APPROVED AND ADOPTED this 7th day of July 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
______________________________
Andrew Hagan, Mayor
ATTEST:
___________________________
MICHELE BATES, Deputy City Clerk

Exhibit “A”
Installment Assessment Information
A. Comprehensive Tree Trimming
i. Estimated total costs to complete $10,000
ii. Total number of annual installments to complete: 10 years iii. Funds will be collected each Fiscal Year through Fiscal Year 2035-36 iv. $26.32 of the actual assessment goes to Capital Replacement B. Masonry Wall Between Commercial Property and Subdivision (430 LF) i. Estimated total costs to complete $33,000 (represents 2/3 of total costs) ii. Total number of annual installments to complete: 30 years iii. Funds will be collected each Fiscal Year through Fiscal Year 2055-56 iv. $28.95 of the actual assessment goes to Capital Replacement C. Monumentation Along Narcissus Way
i. Estimated total costs to complete $10,000
ii. Total number of annual installments to complete: 20 years iii. Funds will be collected each Fiscal Year through Fiscal Year 2045-46 iv. $13.16 of the actual assessment goes to Capital Replacement

ITEM NO. 9

COUNCIL AGENDA ITEM
FOR JULY 7, 2025
Prepared By: Jaylen French, City Manager
Date: June 18, 2025
Subject: Sunrise Terrace Landscape Maintenance District No. 96-1, Consideration of Initiating Proceedings for the Levy and collection of Assessments for Fiscal Year 2025-26
Recommendation:

Adopt the: (1) Resolution Initiating Proceedings for the Annual Levy of Assessments and Ordering the Preparation of Engineer’s Reports for Sunrise Terrace Landscape Maintenance District No. 96-1 for Fiscal Year 2025-26; (2) Resolution for Preliminary Approval of the Engineer’s Report Regarding the Proposed Levy and Collection of Assessments for Sunrise Terrace Landscape Maintenance District No. 96-1 for Fiscal Year 2025-26; and (3) Resolution Declaring the Intention to Levy and Collect the Annual Assessments for Sunrise Terrace Landscape Maintenance District No. 96-1 for Fiscal Year 2025-26.

Strategic Plan Priority:

This action supports Escalon 2025-2026 Strategic Plan Priority #2, Fiscal Stability. Landscape and Lighting Districts (LLDs) provide dedicated revenue for the ongoing maintenance, repair, and replacement of infrastructure and amenities in their respective neighborhoods throughout the City.

Background and Discussion:

This assessment funds the costs of electricity, wall maintenance, landscape maintenance within the Neighborhood Children’s Dinosaur Park, and associated maintenance repair costs within the Sunrise Terrace development. This assessment district was established in 1996.

For Fiscal Year (FY) 2025-26, staff has reevaluated and updated the actual cost of services to the LMD in establishing the proposed assessment rate. The assessment per single-family residential unit is proposed at $121.68 for this fiscal year which is no increase from the previous year. The LMD’s formation documents do not allow for an annual increase and has a maximum assessment of $121.68.

The Sunrise Terrace LMD does not include an annual inflator as it was created before Proposition

218, which made it more difficult to increase assessment rates. This was a common occurrence in pre-Proposition 218 districts. Nevertheless, staff evaluated the true cost of the LMD, which is $236.93 per single-family residential unit. Because this assessment district is underfunded the City Council may consider reducing or eliminating provisions of service to the extent the assessments do not cover such costs. Additionally, the City Council could consider initiating discussion with the property owners to gauge their interest in voting to increase their assessments in-lieu of potential reduced or eliminated services. To increase the assessment to the required rate, and to approve an annual inflationary increase, a majority of the property owners would need to vote to approve such an increase through a Proposition 218 protest ballot proceeding.

Assessment History by Fiscal Year
FY 21/22 FY 22/23 FY 23/24 FY 24/25 Proposed FY
25/26
Assessment $ 121.68 $ 121.68 $ 121.68 $ 121.68 $ 121.68 Change $ $ - $ - $ - $ - $ -
Change % 0% 0% 0% 0% 0%
Comparison of Maximum and Proposed Assessment
Maximum
Assessment
Proposed
FY 25/26
Assessment
$ Below Max % Below
Max
Sunrise $ 121.68 $ 121.68 $ - 0%
Further details and financial analysis are available in the attached Engineer’s Report for FY 2025-26.

Fiscal Impact:

The City’s General Fund assumes the difference in costs and generated revenue, which is approximately $9,335.25 per year. This amount is expected to grow annually as the costs of providing the services continues to increase.

After council approval of the three attached resolutions, a public hearing will be held on July 21, 2025 to approve the FY 2025-26 budget and assessments for the Sunrise Terrace Landscape Maintenance District No. 96-1.

Exhibits:

1. Engineer’s Report FY 2025-26 for Sunrise Terrace Landscape Maintenance District No. 96-1

2. Resolution Initiating Proceedings for the Annual Levy of Assessments and Ordering the Preparation of Engineer’s Reports for Sunrise Terrace Landscape Maintenance District No. 96-1 for Fiscal Year 2025-26

3. Resolution for Preliminary Approval of the Engineer’s Report Regarding the Proposed Levy

and Collection of Assessments for Sunrise Terrace Landscape Maintenance District No. 96-1 for Fiscal Year 2025-26

4. Resolution Declaring the Intention to Levy and Collect the Annual Assessments for Sunrise Terrace Landscape Maintenance District No. 96-1 for Fiscal Year 2025-26

CITY OF ESCALON
FINAL ENGINEER’S REPORT
FISCAL YEAR 2025-26

SUNRISE TERRACE LANDSCAPE
MAINTENANCE DISTRICT NO 96-1
JUNE 2025

PREPARED BY
Harris & Associates
1401 Willow Pass Road, Suite 500
Concord, CA 94520
www.weareharris.com
EXHIBIT 1

Engineer’s Report
Sunrise Terrace Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26

TABLE OF CONTENTS
STATEMENT OF ASSESSMENT ENGINEER….……………………………………………………………..1 PART 1 – PLANS AND SPECIFICATIONS……………………………………………………………………..3 PART 2 – ESTIMATE OF COSTS………………………………………………………………………………….5 PART 3 – ASSESSMENT DIAGRAM…………………………………………………………………………….8 PART 4 – METHOD OF APPORTIONMENT………………………………………………………………...9 APPENDIX A – ASSESSMENT ROLL…………………………………………………………………………..13 APPENDIX B – DISTRICT DIAGRAM………….……………………………………………………………...17 APPENDIX C – IMPROVEMENT MAP……….……………………………………………………………...18

Engineer’s Report
Sunrise Terrace Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26

1 STATEMENT OF ASSESSMENT ENGINEER
AGENCY: CITY OF ESCALON
PROJECT: SUNRISE TERRACE LANDSCAPE MAINTENANCE DISTRICT NO. 96-1 TO: THE CITY COUNCIL

CITY OF ESCALON

STATE OF CALIFORNIA
ENGINEER’S REPORT FOR FISCAL YEAR 2025-26
The preparation of this Annual Engineer’s Report (“Report”) is in conformance with the obligation of the City Council, for the Sunrise Terrace Landscape Maintenance District, to provide landscaping services upon each lot or parcel of land in the district in proportion to the estimated benefit to be received by each such lot or parcel of land for Fiscal Year 2025-26.

Pursuant to the Landscaping and Lighting Act of 1972 (Part 2 Division 15 of the Streets and Highways Code of the State of California, commencing with Section 22500) (“Act”), Article XIIID, Section 4(a) of the State of California Constitution, and in accordance with the City of Escalon’s Resolution being adopted by the City Council for the:

SUNRISE TERRACE LANDSCAPE MAINTENANCE DISTRICT
(Hereinafter referred to as the “District”),
I, Alison Bouley, authorized representative of the District, the duly appointed Assessment Engineer submit the following Report which consists of the following four (4) parts and Appendices:

PART 1
Description of Improvements: This part provides a general description of improvements proposed to be maintained in the District. Plans and specifications for the improvements are on file with the City and are hereby made a part of this Report by reference.

PART 2
Estimate of Cost: This part contains the cost estimate of the proposed maintenance including incidental costs and expenses for Fiscal Year 2025-26.

PART 3
District Diagram: This part incorporates a Diagram of the District showing the external boundaries of the District. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the San Joaquin County Assessor for the year in which this Report was prepared and are incorporated by reference herein and made part of this Report. A copy of the District Diagram is included in Appendix B and has also been filed under separate cover with the office of the City Clerk.

Engineer’s Report
Sunrise Terrace Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26

2 PART 4
Method of Apportionment of the Assessments: This part describes the method of apportionment of assessments, based upon parcel classification of land within the District in proportion to the estimated special benefits to be received. The costs and expenses of the District have been assessed upon the parcels of land within the boundaries of District pursuant to the initial methodology established Resolution No. 31-91 approved on the 5th day of February, 1996. For particulars as to the identification of parcels, reference is made to the District Diagram.

Appendices
Appendix A – Assessment Roll
Appendix B – District Diagram
Appendix C – Improvement Map
In conclusion, it is my opinion that the costs and expenses of the District have been assessed to the lots and parcels within the boundaries of the District in proportion to the estimated benefits to be received by each lot or parcel from the services provided.

DATED this 19th day of May, 2025
___________________________________________
Alison Bouley, P.E., Assessment Engineer
R.C.E. No. C61383
Engineer of Work

Engineer’s Report
Sunrise Terrace Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26

3 PART 1 - PLANS AND SPECIFICATIONS
The District was formed to provide a funding mechanism to ensure the ongoing operation, maintenance and servicing of certain landscape and lighting improvements within the boundaries of the District. Said improvements are detailed below under “Improvements and Services Provided”.

The Sunrise Terrace Landscape Maintenance District No. 96-1 is within the boundaries of the City and is located generally north of Miller Street, south of Mahon Avenue, east of Escalon Avenue and west of Campbell Avenue.

The sole property owner at the time of formation was McRoy-Wilbur Communities, Inc.

The District is comprised of the residential development known as Sunrise Terrace Units 3, 4 and 5 and consists of eighty one (81) assessable single-family residential parcels. APN 227-600-400 is now an assessable parcel (beginning in the 2010- 11 fiscal year). This parcel was originally planned as a drainage basin within the tract but subsequent to the initial development the parcel usage was changed and it is now a single family home.

Units 1 and 2 of the Sunrise Terrace development are not included in the District due to the fact that the District was formed after these units had been planned and developed. The District maintains no improvements within the boundary area or frontage of these units and therefore no assessment is required. If, in the future, there are additional improvements installed within the boundary area or frontage of Units 1 or 2, annexation proceedings may be considered.

The plans and specifications for the improvements, showing the general nature, location, and the extent of the improvements, are on file in the office of the City Clerk and are incorporated herein by reference.

IMPROVEMENTS AND SERVICES PROVIDED
The following are the specific improvements maintained and serviced within the District:
• A 6-foot masonry wall on the property line along the east side of Escalon-Bellota Road from the northern boundary of Sunrise Terrace Unit 3 to Libby Drive. Maintenance of the masonry wall includes graffiti abatement.
• A 6-foot masonry wall on the property line along the south side of the Sunrise Terrace Neighborhood Children’s Park.
• Maintenance and utility costs for 16 streetlights located throughout the interior and exterior of the tract. • A wrought iron fence on the property line along the south side of the Sunrise Terrace Neighborhood Children’s Park.
• Landscaping between the back sidewalk and the wall/fence along Escalon-Bellota Road. • Maintenance of landscaping and playground equipment within the Sunrise Terrace Neighborhood Children’s Park located on the southeast corner of Escalon-Bellota Road and Libby Drive. (Lots 8 & 9 of Sunrise Terrace Unit 3). This park is also known as Dinosaur Park.

Engineer’s Report
Sunrise Terrace Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26

4 The City of Escalon performed site and apparatus modifications for safety compliance within Dinosaur Park during the 2013 year. These safety modifications were budgeted at $3,000 and were included in District Budget for that year.

The City also replaced the rubber bark in Dinosaur Park during the 2013 year. Grant funds were used to purchase the bark but District funds were used for the labor costs to remove the old bark and replace it with the new.

In 2022 the City removed and replaced a damaged slide from the playground set in Dinosaur Park. The total estimated cost was $2,900. Funds from the District’s Capital Reserve Fund were used to pay for the removal and replacement expense.

Reference is made to the plans and specifications for the improvements on file in the office of the City Clerk and are incorporated herein by reference.

Engineer’s Report
Sunrise Terrace Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26

5 PART 2 – ESTIMATE OF COST
The estimated budget for the annual maintenance and servicing of the improvements and the proportionate share of administration costs of the District have been prepared based on the estimated and recent historical costs of the District.

The 2025-26 District budget is shown below.

ESTIMATE OF COST
The budget table above shows two columns of numbers. The first, “FY 25-26 Budget” shows the costs that can be assessed based o the allowable Maximum Assessment. The second, “Estimated Amount to Fully Fund District” shows the actual costs to maintain the District improvements. The discrepancy between the two columns demonstrates how much the District is under-funded. In order to increase the Maximum Assessment, the City must initiate a Proposition 218 property owner ballot proceeding and obtain a majority approval.

DIRECT COSTS FY25-26 Budget
Estimated Amount
to Fully Fund
District
Utility – Water (based on prior year consumptions w/current rates) $4,058.04 $4,058.04 Utility – Electricity (sprinkler timers, est. @ $12.66 per month) $27.00 $27.00 Annual collection to replace playground equipment (1) 0.00 3,000.00 Dinosaur Park Annual Rubber Bark Replenishment 0.00 750.00 Contract Services – Street Lights (16 lights @ avg. of $15.73 each – monthly) 3,020.00 3,020.00 Contract Services – Park Maintenance ($210 monthly contract plus incidentals) (ex: tree maintenance, replacement, sprinkler repairs, etc.) Professional Services – Public Works (inspection, repairs & maintenance) 198.00 198.00 Direct Costs Sub-Total $9,823.04 $13,573.04

CAPITAL REPLACEMENT COSTS
Wrought Iron Fence Around Dinosaur Park (225') 0.00 900.00 Replace Masonry Wall around Dinosaur Park (194') 0.00 776.00 Replace Masonry Wall Along Escalon Avenue (430') 0.00 1,720.00 Paint Masonry Wall Along Escalon Avenue 0.00 200.00
Capital Replacement Costs Sub-Total $0.00 $3,596.00

ADMINISTRATIVE COSTS
Professional Services – Engineer (Harris & Assoc. charge of $353.75 per quarter) $1,415.00 $1,415.00 Public Mail Notice ($1.50 per parcel) 121.50 121.50
General Government Charge (City admin fee – See Descriptions below) 509.00 509.00 County Administration Fee (See Descriptions below) 98.56 98.56 Rounding Adjustment (to make an even penny for tax roll purposes) 0.84 0.84 Administrative Costs Sub-Total $2,144.90 $2,144.90
SUBTOTAL DIRECT, CAPITAL AND ADMINISTRATIVE COSTS $11,967.94 $19,313.94 Operating Reserve Collection/(Reduction) (2,111.86) 359.60 TOTAL BALANCE TO ASSESSMENT $9,856.08 $19,673.54
Total Assessable Parcels/Units 81 81
ASSESSMENT PER PARCEL/EDU $121.68 $242.88
2,520.00 2,520.00

Engineer’s Report
Sunrise Terrace Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26

6 The 1972 Act requires that a special fund be set-up for the revenues and expenditures of the District. Funds raised by assessment shall be used only for the purpose as stated herein. A contribution to the District by the City may be made to reduce assessments or to fund costs which are greater than revenue from the assessments, as the City Council deems appropriate. Any balance or deficit remaining on July 1 must be carried over to the next fiscal year. Estimated beginning and ending fund balances for Fiscal Year 2025-26 are shown in the following table.

Section 22569 (a) of the 1972 Act allows the District assessments to “…include a reserve which shall not exceed the estimated costs of maintenance and servicing to December 10 of the fiscal year, or whenever the city expects to receive its apportionment of special assessments and tax collections from the county, whichever is later.”

DISTRICT FUND BALANCES

DESCRIPTION OF COST ESTIMATE ITEMS
• Utility – Water & Electricity: The costs to provide electrical and water utilities for the landscape and lighting improvements within the District.
• Contract Services – Street Lights: The contracting costs associated with the Pacific Gas and Electric Co. to provide electricity for illumination and maintenance of the streetlights and poles within the District. • Contract Services – Park Maintenance: The contracting costs associated with a landscaping contractor to perform the landscape maintenance duties associated with the improvements within the District.

Incidentals may include but are not limited to: tree replacement, sprinkler replacement or repair, etc. • Professional Services Special – Public Works: Costs associated with individuals within the Public Works Department who contribute time to inspection of the improvements, necessary repairs and other maintenance.

OPERATING FUND FY25-26 Budget
Estimated Amount
to Fully Fund
District
Estimated Reserve Fund Beginning Balance as of July 1, 2025 $2,482.00 $2,482.00 Operating Reserve Collection – Fiscal Year 2025-26 (2,111.86) 359.60 Interest Revenue 380.00 380.00
Estimated Reserve Fund Balance Ending June 30, 2026 $750.14 $3,221.60

CAPITAL REPLACEMENT FUND
Capital Replacement Fund Balance as of July 1, 2025 $6,100.00 $6,100.00 Capital Replacement Collections – Fiscal Year 2025-26 0.00 3,596.00 Interest Revenue 0.00 0.00
Estimated Capital Replacement Fund Balance Ending June 30, 2026 $6,100.00 $9,696.00

Engineer’s Report
Sunrise Terrace Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26

7 • Capital Replacement (1) – Playground Equipment: Funds collected on an annual basis for the eventual replacement of the playground equipment. This equipment has a finite life span and will require replacement after approximately 30 years. The equipment for this District was purchased in 1996. It has a current estimated replacement cost of $21,000. To account for inflation over thirty years, 10.37% has been added to the annual collection amount, meaning by the year 2026, the costs to replace the equipment will have increased by an estimated 10.37%, based on Consumer Price Index data gathered from the previous 15 years. This percentage will be re-evaluated every ten years to determine if an adjustment to the annual collections is necessary. In addition to the amounts directly collected for Capital Replacement, any additional revenue available from the collection of District assessments will be added to this account to help bring the account balance up to the required level. • Professional Services – Engineer: The contracting costs associated with hiring a consultant to manage and perform the annual administration duties of the District. These services include preparation of reports, resolutions, assessment rolls and budgets; preparation and placement of assessment amounts onto the County tax rolls; parcel tracking and upkeep of the District database; answering questions for City staff and property owners; and finally, act as an expert resource in matters related to the District. • General Government Charge: Costs associated with individual City Staff and Management (City Clerk, City Council, City Manager, Finance Director, City Engineer, etc.) who contribute time to the annual administration and oversight of the District. This may include but is not limited to, preparation for and attendance of meetings, preparation and posting of public notices, budgeting, inspection, etc. This costs is calculated based on an allocation plan accepted by the City Council in June 2018, prepared by Clear Source Financial.
• County Administration Fee – The County costs related to placement of the annual assessment charges onto the tax roll and the generation of annual tax bills related thereto. This charge is the lesser of $3.00 per parcel or 1% of the total levy amount submitted per District. • Operating Reserve Collection/(Contribution) – This item shows any collections which adds to the Operating Reserve Fund balance, or contributions made from the Operating Reserve Fund, to offset the annual budget.
• Estimated Reserve Fund Balances – These items show the estimated Operating Reserve Fund amounts at the beginning and end of the fiscal year. The estimated ending balance reflects any collections or reductions from the estimated beginning balance.

Engineer’s Report
Sunrise Terrace Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26

8 PART 3 – ASSESSMENT DIAGRAM
A diagram showing the exterior boundaries of the District and the lines and dimensions of each lot or parcel of land within the District has been submitted to the office of the City Clerk of the City of Escalon, and is hereby made a part hereof by reference.

A copy of the assessment diagram for the District is included in Appendix B of the Report.

Engineer’s Report
Sunrise Terrace Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26

9 PART 4 – METHOD OF APPORTIONMENT
General
Street and Highways Code Section 22573 requires that maintenance assessments be levied according to benefit rather than according to assessed value. This section states:

The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements. — Streets and Highways Code Section 22573
Definitions from Streets and Highways Code:

Section 22525 “Improvement” means one or any combination of the following:
(a) Installation and planting of landscaping
(b) The installation and construction of statuary, fountains and other ornamental structures and facilities. (c) The installation and construction of public lighting facilities, including but not limited to traffic signals. (d) The installation or construction of any facilities which are appurtenant to any of the foregoing or which are necessary or convenient for the maintenance and servicing thereof, including, but not limited to grading, clearing, removal of debris, the installation or construction of curbs, gutters, sidewalks, walls or paving, or water, irrigation, drai9nage or electrical facilities.
(e) The installation of parks or recreational improvements, including, but not limited to all of the following:
• Land preparation such as grading, leveling, cutting and filling, sod, landscaping, irrigation systems, sidewalks and drainage
• Lights, playground equipment, play courts and public restrooms (f) The maintenance or servicing or both, of any of the foregoing, and any improvement authorized by subdivision (i).
(g) The acquisition of land for park, recreational or open space purposes. (h) The acquisition of any existing improvement otherwise authorized pursuant to this section. (i) The acquisition or construction of any community center, municipal auditorium or hall, or similar public facility for the indoor presentation or performances, shows, stage productions, fairs, conventions, exhibitions, pageants, meetings, parties or other group activities or functions, whether such, activities or functions are public or private.

Section 22526 “Incidental Expenses” include all of the following:
(a) The costs and preparation of the report, including plans, specifications, estimates, diagrams and assessment.
(b) The costs of printing, advertising and giving of published, posted and mailed notices. (c) Compensation payable to the county for the collection of assessments. (d) Compensation of any engineer or attorney employed to render services in proceedings pursuant to this part.

Engineer’s Report
Sunrise Terrace Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26

10 (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 Section 22662.5 of the Act. (g) Any costs associated with any elections held for the approval of a new or increased assessment.

The 1972 Act permits the designation of areas of benefit within any individual assessment district if "by reason of variations in the nature, location, and extent of the improvements, the various areas will received different degrees of benefit from the improvements." (Sec. 22574). Thus, the 1972 Act requires the levy of a true "assessment" rather than a "special tax."
In November 1996, the voters of California adopted Proposition 218, which has been codified as Articles XIIIC and XIIID of the California Constitution. Proposition 218 imposed a number of substantive and procedural requirements on taxes, assessments, and property-related fees imposed by local governments in California. Since the District Assessments were imposed prior to November 5, 1996, they are “grandfathered” under Article XIIID, Section 5(a) of the Constitution, which permits the continuation of assessments existing prior to the effective date of Proposition 218 so long as the assessments are imposed exclusively to finance the capital costs or maintenance and operation expenses for sidewalks, streets, sewers, water, flood control, drainage systems or vector control. The Assessments may continue to be levied annually by the City without additional property-owner approval at the rates that existed when Proposition 218 went into effect. Any increase above such rates must be in compliance with Proposition 218 and requires property-owner approval.

The method of apportioning the assessments described in this Report, and confirmed by the City Council, utilizes commonly accepted engineering practices which have been established pursuant to the 1972 Act and the California Constitution for the allocation of special benefit assessments. The calculation of assessments is based upon the parcel type and the services and improvements provided to equitably apportion the costs based on the special benefit received by each lot or parcel. The special benefit received by each lot or parcel is over and above any general benefit conferred upon said lots or parcels or to the public at large.

SPECIAL BENEFIT
The improvements and associated costs have been allocated to the assessable properties within the District based upon the special benefit received by those properties. The improvements for which the properties are assessed have been identified as necessary, were installed and are being maintained as part of the development plans specifically for each tract. As such, the improvements and continuing maintenance and servicing of those improvements are strictly the obligation of the properties within the District.

General Benefit
Although the improvements may be visible to passersby or to the public at large, the improvements were installed as a requirement of the development of the tract and are for the sole benefit of properties within the District. It has been determined therefore, any access or use by properties or individuals outside the District is completely incidental and the costs of operating, maintaining and servicing said improvements therefore provides no measurable benefit to outside properties or individuals.

Engineer’s Report
Sunrise Terrace Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26

11 Definition of Special Benefit
The method of apportionment described in this Report is based on the premise that each assessable parcel or unit receives distinct and special benefits from the improvements and services provided, including the visual desirability provided by well-maintained landscaping. In accordance with Article XIII D, Section 4 of the California Constitution:
“Special benefit means a particular and distinct benefit over and above general benefits conferred on real property located in the District or the public at large” The special benefits associated with local landscaping improvements are specifically:
• Enhanced desirability of properties due to proximity and accessibility of the improvements. • Improved aesthetic appeal provided by a positive representation of the development, neighborhood and the community.
• Improved accessibility for emergency vehicles.
• Reduced vandalism and other criminal activity.

ASSESSMENT RANGE FORMULA
It is generally recognized that most budgetary items will be impacted by inflation in future years. In an effort to minimize the impact this has on maintenance districts, a formula for inflationary adjustments is typically included as a part of the maximum assessment to be approved by the property owners during the formation of the District. Prior to the passage of Proposition 218 however, inflationary adjustments were not included as a standard part of the formation and approval process. The Sunrise Terrace District was formed in 1996, just prior to the passage of Proposition 218 and does not include an inflationary adjustment for the annual assessments.

The maximum allowable assessment therefore is $121.68 and cannot be increased without approval from the property owners within the District as described below.

To impose a new assessment or increased assessment in excess of the Maximum Assessment Rate for the current fiscal year, as provided by the preceding Assessment Range Formula, the City must comply with the provisions of the California Constitution, Article XIII D, Section 4c that requires a public hearing and certain protest procedures including mailed notice of the public hearing and property owner protest balloting. Property owners must approve the proposed new or increased assessment via a property owner protest balloting process before any such new or increased assessment can be imposed. A protest occurs when, at the public hearing, the returned assessment ballots opposed to the new or increased assessment outweigh the returned ballots in favor of the new or increased assessment, weighting those assessment ballots by the financial obligation of each parcel.

The definition of new or increased assessments includes any assessment which, 1) did not previously exist or, 2) exceeds a previously approved assessment amount or assessment range formula. Any assessment range formula must have been previously adopted by the agency and approved by the property owners.

Engineer’s Report
Sunrise Terrace Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26
12 ASSESSMENT METHODOLOGY
The benefit formula used to determine the financial obligation for each parcel is based on the improvements benefitting the parcels, as well as the use, or type, of each parcel that benefits from said improvements. One of the more common approaches to fairly distributing District costs to the benefitting parcels in maintenance districts such as this utilizes a methodology referred to as the “Per Parcel” method of apportionment. This method utilizes various property characteristics such as type of development (land-use) and size (units or acreage) to compare the proportional benefit of each property compared to other properties benefiting from the improvements.

The District is comprised entirely of residential parcels. Each residential parcel receives similar benefit from the improvements due to the relative size of the properties, the specific improvements and proximity of the improvements to the properties. Because the property characteristics are identical within the District, each parcel has been assigned an EDU value of one (“1”). The total number of units is divided into the “Total Balance to Assessment”, (as shown in Part 3 of this Report) to determine the annual assessment rate per parcel/unit.

Engineer’s Report
Sunrise Terrace Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26

13 APPENDIX A – ASSESSMENT ROLL
Parcel Identification for each lot or parcel within the District shall be based on available parcel maps and other property data from the San Joaquin County Assessor’s office as they existed at the time this Report was prepared and adopted by the City Council.

A listing of parcels assessed within the District for Fiscal Year 2025-26, along with the corresponding assessment amounts, is included on the following pages. If any parcel submitted for collection is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, a corrected parcel number and/or new parcel numbers will be identified and resubmitted to the County Auditor/Controller. The assessment amount to be levied and collected for the resubmitted parcel(s) shall be based on the method of apportionment and assessment rate approved in this Report.

Therefore, if a single parcel has changed to multiple parcels, the assessment amounts applied to each of the new parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment.

Non-assessable lots or parcels include areas of public streets and other roadways (typically not assigned an APN by the County); dedicated public easements, open space areas and rights-of-way, including public greenbelts and parkways; utility rights-of-way; common areas; landlocked parcels; small parcels vacated by the County, bifurcated lots and any other property that cannot be developed or has specific development restrictions. These types of parcels are considered to receive little or no benefit from the improvements and are therefore, exempted from assessment

Engineer’s Report
Sunrise Terrace Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26

14 APN
Unit/Lot
Number Units
2025-26
Maximum
Assessment
Rate
2025-26
Approved
Assessment
Rate
2025-26
Actual
Assessment
Rate
227-560-01 Unit 3 - 1 1.00 $121.68 $121.68 $121.68
227-560-02 Unit 3 - 2 1.00 $121.68 $121.68 $121.68
227-560-03 Unit 3 - 3 1.00 $121.68 $121.68 $121.68
227-560-04 Unit 3 - 4 1.00 $121.68 $121.68 $121.68
227-560-05 Unit 3 - 5 1.00 $121.68 $121.68 $121.68
227-560-06 Unit 3 - 6 1.00 $121.68 $121.68 $121.68
227-560-07 Unit 3 - 7 1.00 $121.68 $121.68 $121.68
227-560-08 Unit 3 - 8 0.00 $121.68 $121.68 $0.00
227-560-09 Unit 3 - 9 0.00 $121.68 $121.68 $0.00
227-560-10 Unit 3 - 10 1.00 $121.68 $121.68 $121.68
227-560-11 Unit 3 - 11 1.00 $121.68 $121.68 $121.68
227-560-12 Unit 3 - 12 1.00 $121.68 $121.68 $121.68
227-560-13 Unit 3 - 13 1.00 $121.68 $121.68 $121.68
227-560-14 Unit 3 - 14 1.00 $121.68 $121.68 $121.68
227-560-15 Unit 3 - 15 1.00 $121.68 $121.68 $121.68
227-560-16 Unit 3 - 16 1.00 $121.68 $121.68 $121.68
227-560-17 Unit 3 - 17 1.00 $121.68 $121.68 $121.68
227-560-18 Unit 3 - 18 1.00 $121.68 $121.68 $121.68
227-560-19 Unit 3 - 19 1.00 $121.68 $121.68 $121.68
227-560-20 Unit 3 - 20 1.00 $121.68 $121.68 $121.68
227-560-21 Unit 3 - 21 1.00 $121.68 $121.68 $121.68
227-560-22 Unit 3 - 22 1.00 $121.68 $121.68 $121.68
227-560-23 Unit 3 - 23 1.00 $121.68 $121.68 $121.68
227-560-24 Unit 3 - 24 1.00 $121.68 $121.68 $121.68
227-560-25 Unit 3 - 25 1.00 $121.68 $121.68 $121.68
227-560-26 Unit 3 - 26 1.00 $121.68 $121.68 $121.68
227-560-27 Unit 3 - 27 1.00 $121.68 $121.68 $121.68
227-560-28 Unit 3 - 28 1.00 $121.68 $121.68 $121.68
227-560-29 Unit 3 - 29 1.00 $121.68 $121.68 $121.68
227-560-30 Unit 3 - 30 1.00 $121.68 $121.68 $121.68
227-600-01 Unit 4 - 1 1.00 $121.68 $121.68 $121.68
227-600-02 Unit 4 - 2 1.00 $121.68 $121.68 $121.68
227-600-03 Unit 4 - 3 1.00 $121.68 $121.68 $121.68
227-600-04 Unit 4 - 4 1.00 $121.68 $121.68 $121.68
227-600-05 Unit 4 - 5 1.00 $121.68 $121.68 $121.68
227-600-06 Unit 4 - 6 1.00 $121.68 $121.68 $121.68
227-600-07 Unit 4 - 7 1.00 $121.68 $121.68 $121.68

Engineer’s Report
Sunrise Terrace Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26

15 APN
Unit/Lot
Number Units
2025-26
Maximum
Assessment
Rate
2025-26
Approved
Assessment
Rate
2025-26
Actual
Assessment
Rate
227-600-08 Unit 4 - 8 1.00 $121.68 $121.68 $121.68
227-600-09 Unit 4 - 9 1.00 $121.68 $121.68 $121.68
227-600-10 Unit 4 - 10 1.00 $121.68 $121.68 $121.68
227-600-11 Unit 4 - 11 1.00 $121.68 $121.68 $121.68
227-600-12 Unit 4 - 12 1.00 $121.68 $121.68 $121.68
227-600-13 Unit 4 - 13 1.00 $121.68 $121.68 $121.68
227-600-14 Unit 4 - 14 1.00 $121.68 $121.68 $121.68
227-600-15 Unit 4 - 15 1.00 $121.68 $121.68 $121.68
227-600-16 Unit 4 - 16 1.00 $121.68 $121.68 $121.68
227-600-17 Unit 4 - 17 1.00 $121.68 $121.68 $121.68
227-600-18 Unit 4 - 18 1.00 $121.68 $121.68 $121.68
227-600-19 Unit 4 - 19 1.00 $121.68 $121.68 $121.68
227-600-20 Unit 4 - 20 1.00 $121.68 $121.68 $121.68
227-600-21 Unit 4 - 21 1.00 $121.68 $121.68 $121.68
227-600-22 Unit 4 - 22 1.00 $121.68 $121.68 $121.68
227-600-23 Unit 4 - 23 1.00 $121.68 $121.68 $121.68
227-600-24 Unit 4 - 24 1.00 $121.68 $121.68 $121.68
227-600-25 Unit 4 - 25 1.00 $121.68 $121.68 $121.68
227-600-26 Unit 5 - 1 1.00 $121.68 $121.68 $121.68
227-600-27 Unit 5 - 2 1.00 $121.68 $121.68 $121.68
227-600-28 Unit 5 - 3 1.00 $121.68 $121.68 $121.68
227-600-29 Unit 5 - 4 1.00 $121.68 $121.68 $121.68
227-600-30 Unit 5 - 5 1.00 $121.68 $121.68 $121.68
227-600-31 Unit 5 - 6 1.00 $121.68 $121.68 $121.68
227-600-32 Unit 5 - 7 1.00 $121.68 $121.68 $121.68
227-600-33 Unit 5 - 8 1.00 $121.68 $121.68 $121.68
227-600-34 Unit 5 - 9 1.00 $121.68 $121.68 $121.68
227-600-35 Unit 5 - 10 1.00 $121.68 $121.68 $121.68
227-600-36 Unit 5 - 11 1.00 $121.68 $121.68 $121.68
227-600-37 Unit 5 - 12 1.00 $121.68 $121.68 $121.68
227-600-38 Unit 5 - 13 1.00 $121.68 $121.68 $121.68
227-600-39 Unit 5 - 14 1.00 $121.68 $121.68 $121.68
227-600-40 Unit 5 - A 1.00 $121.68 $121.68 $121.68
227-600-41 Unit 5 - 15 1.00 $121.68 $121.68 $121.68
227-600-42 Unit 5 - 16 1.00 $121.68 $121.68 $121.68
227-600-43 Unit 5 - 17 1.00 $121.68 $121.68 $121.68
227-600-44 Unit 5 - 18 1.00 $121.68 $121.68 $121.68

Engineer’s Report
Sunrise Terrace Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26

16 APN
Unit/Lot
Number Units
2025-26
Maximum
Assessment
Rate
2025-26
Approved
Assessment
Rate
2025-26
Actual
Assessment
Rate
227-600-45 Unit 5 - 19 1.00 $121.68 $121.68 $121.68
227-600-46 Unit 5 - 20 1.00 $121.68 $121.68 $121.68
227-600-47 Unit 5 - 21 1.00 $121.68 $121.68 $121.68
227-600-48 Unit 5 - 22 1.00 $121.68 $121.68 $121.68
227-600-49 Unit 5 - 23 1.00 $121.68 $121.68 $121.68
227-600-50 Unit 5 - 24 1.00 $121.68 $121.68 $121.68
227-600-51 Unit 5 - 25 1.00 $121.68 $121.68 $121.68
227-600-52 Unit 5 - 26 1.00 $121.68 $121.68 $121.68
227-600-53 Unit 5 - 27 1.00 $121.68 $121.68 $121.68
TOTALS: 81.00 $9,856.08

Engineer’s Report
Sunrise Terrace Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26

17 APPENDIX B – DISTRICT ASSESSMENT DIAGRAM

Engineer’s Report
Sunrise Terrace Landscape Maintenance District
City of Escalon
Fiscal Year 2025-26

18 APPENDIX C – IMPROVEMENT MAP

Resolution XX-25

RESOLUTION NO. XX-25

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ESCALON INITIATING

PROCEEDINGS FOR THE ANNUAL LEVY OF ASSESSMENTS AND ORDERING

THE PREPARATION OF ANNUAL ASSESSMENT REPORTS FOR THE CITY OF ESCALON’S SUNRISE TERRACE LANDSCAPE AND LIGHTING MAINTENANCE DISTRICT NO. 96-1 FOR FISCAL YEAR 2025/26
WHEREAS, the City Council of the City of Escalon has previously formed a special maintenance district pursuant to the terms of the “Landscaping and Lighting Act of 1972” (the 1972 Act”), being Division 15, Part 2 of the Streets and Highways Code of the State of California (commencing with Section 22500). Said special maintenance district is known and identified as the Sunrise Terrace Landscape and Lighting Maintenance District No. 96-1 (hereafter referred to as the “District”); and,
WHEREAS, the City Council has retained Harris & Associates (“Harris”) for the purpose of assisting with the annual levy of the District and to prepare and file with the City Clerk, the Annual Assessment Report (“Report”) for the District in accordance with the 1972 Act.

NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS:

SECTION 1. ANNUAL ASSESSMENT REPORT: The City Council wishes to initiate proceedings for the preparation of the Annual Assessment Report and hereby orders Harris to prepare and file with the City Clerk, the Report concerning the annual levy and collection of assessments for the District. Said levy and collection shall be for the fiscal year commencing July, 1, 2025 and ending June 30, 2026 in accordance with Chapter 3, Section 22622 of the 1972 Act.

SECTION 2. IMPROVEMENTS: There are no new improvements or any substantial changes in the existing improvements proposed to be implemented with this Resolution.

EXHIBIT 2

Resolution XX-25

PASSED, APPROVED AND ADOPTED this 7th day of July 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
______________________________
Andrew Hagan, Mayor
ATTEST:
___________________________
MICHELE BATES, Deputy City Clerk

Resolution XX-25

RESOLUTION NO. XX-25

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ESCALON FOR

PRELIMINARY APPROVAL OF THE ANNUAL ASSESSMENT REPORT

REGARDING THE PROPOSED LEVY AND COLLECTION OF ASSESSMENTS FOR THE SUNRISE TERRACE LANDSCAPE MAINTENANCE DISTRICT NO. 96-1 FOR FISCAL YEAR 2025/26
WHEREAS, the City Council, pursuant to the provisions of the “Landscape and Lighting Act of 1972” (the “1972 Act”), being Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) did by previous Resolution, order the preparation of an Annual Assessment Report (the “Report”) for the special maintenance district known and designated as the Sunrise Terrace Landscape Maintenance District No. 96-1 (the “District”); and,
WHEREAS, there has now been presented to the City Council the Report as required by Chapter 1, Article 4, Section 22566 of the 1972 Act; and, WHEREAS, the City Council has carefully examined and reviewed the Report as presented and is preliminarily satisfied with said Report, each and all of the budgets items and documents as set forth therein and is satisfied that the assessment amounts, on a preliminary basis, have been spread in accordance with the special benefit received from the improvements, operation, maintenance and services to be performed within the District as set forth in said Report.

NOW, THEREFORE BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY COUNCIL FOR THE DISTRICT, AS FOLLOWS:

SECTION 1. That the above recitals are true and correct.

SECTION 2. That the Report as presented, consisting of the following:
a. A Description of Improvements to be maintained and serviced. b. A description of the annual Costs and Expenses of the District. c. The Method of Apportionment of Assessments.
d. An Assessment Roll showing the assessments to be levied against each assessable parcel in the District.
e. A Diagram showing the boundaries of the District.
is hereby approved on a preliminary basis and is ordered to be filed in the office of the City Clerk as a permanent record and to remain open to public inspection.

SECTION 3. That the City Clerk shall certify to the passage and adoption of this Resolution, and the minutes of this meeting shall so reflect the presentation of the Report.

EXHIBIT 3

Resolution XX-25

PASSED, APPROVED AND ADOPTED this 7th day of July 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Andrew Hagan, Mayor
ATTEST:

MICHELE BATES, Deputy City Clerk

Resolution XX-25

RESOLUTION NO. XX-25

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ESCALON DECLARING

ITS INTENT FOR THE LEVY AND COLLECTION OF ANNUAL ASSESSMENTS FOR THE SUNRISE TERRACE LANDSCAPE MAINTENANCE DISTRICT NO. 96-1 FOR FISCAL YEAR 2025/26
WHEREAS, the City Council has by previous Resolutions formed said special maintenance district and has initiated proceedings for Fiscal Year 2025/26, pursuant to the provisions of the “Landscaping and Lighting Act of 1972” (the “1972 Act”), being Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) that provides for the levy and collection of assessments by San Joaquin County to pay for the annual maintenance and servicing costs of all improvements and facilities related thereto. Said special maintenance district is known and identified as the Sunrise Terrace Landscape Maintenance District No. 96-1 (hereafter referred to as the “District”); and, WHEREAS, following the May 5, 2025 City Council meeting it was determined necessary to restart the annual assessment collection proceedings to allow time for additional review and preparation of necessary documents, therefore all previous resolutions related to the collection of annual assessments for the District adopted on May 5, 2025 are superseded by the resolutions adopted on July 7, 2025; and,
WHEREAS, the City Council has retained Harris & Associates (“Harris”) for the purpose of assisting with the annual levy of the District and to prepare and file an Annual Assessment Report (the “Report”) for the District, in accordance with the 1972 Act.

NOW, THEREFORE BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY COUNCIL, FOR THE DISTRICT, PURSUANT TO CHAPTER 3, SECTION 22624 OF THE 1972 ACT, AS FOLLOWS:

Section 1 Intention: The City Council hereby declares that it is its intention to seek the annual levy of the District pursuant to the 1972 Act for Fiscal Year 2025/26, over and including the land within the District boundaries and to levy and collect assessments on all benefitting land to pay the annual costs of the maintenance and servicing of the improvements located within the District. The City Council finds that the public’s best interest requires such levy and collection.

Section 2 Report and District Boundaries: The boundaries of the District are described in the Report, on file with the City Clerk and incorporated herein by this reference. Please refer to the Report for a full and complete description of the improvements, the specific boundaries of the District, the proposed assessments, and diagram.

Section 3 Description of Improvements: The improvements within the District may include, but are not limited to: turf, shrubs, plants and trees, landscaping, street lighting, irrigation and drainage systems, graffiti removal, pedestrian walkways, landscape lighting, masonry walls, and associated appurtenances within the public rights-of-way or specific easements. Services EXHIBIT 4

Resolution XX-25

provided include all necessary service, operations, administration and maintenance required to keep the improvements in a healthy, vigorous and/or satisfactory operating condition. There are no new improvements or any substantial changes proposed to existing improvements.

Section 4 Proposed Assessment Amounts: For Fiscal Year 2025/26, the proposed assessments are shown in the Report. The assessments are not proposed to be increased from the previous year.

Section 5 Public Hearing: The City Council hereby declares its intention to conduct a Public Hearing annually concerning the levy of assessments for the District in accordance with Chapter 3, Section 22626 of the 1972 Act.

Section 6 Notice: The City Council shall give notice of the time and place of the Public Hearing to all property owners within the District by causing the publishing of this Resolution once in the local newspaper not less than ten (10) days before the date of the Public Hearing and by posting a copy of this Resolution on the official bulletin board customarily used by the City for the posting of notices. All interested persons shall be afforded the opportunity to hear and be heard.

Section 7 Notice of Public Hearing: Notice is hereby given that a Public Hearing on these matters will be held by the City Council on Monday, July 21, 2025 at 7:00 p.m. at Escalon City Hall, located at 2060 McHenry Avenue, Escalon.

Section 8 The City Clerk is hereby authorized and directed to give notice of said Public Hearing as provided by the 1972 Act.

PASSED, APPROVED AND ADOPTED this 7th day of July 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
______________________________
Andrew Hagan, Mayor
ATTEST:
___________________________
MICHELE BATES, Deputy City Clerk

ITEM NO. 10

COUNCIL AGENDA ITEM
FOR JULY 7, 2025
Prepared By: Jaylen French, City Manager
Date: June 18, 2025
Subject: Westwood Country Landscape and Lighting Maintenance District No. 02-1, Consideration of Initiating Proceedings for the Levy and collection of Assessments for Fiscal Year 2025-26
Recommendation:

Adopt the: (1) Resolution Initiating Proceedings for the Annual Levy of Assessments and Ordering the Preparation of Engineer’s Reports for Westwood Country Landscape and Lighting Maintenance District No. 02-1 for Fiscal Year 2025-26; (2) Resolution for Preliminary Approval of the Engineer’s Report Regarding the Proposed Levy and Collection of Assessments for Westwood Country Landscape and Lighting Maintenance District No. 02-1 for Fiscal Year 2025-26; and (3) Resolution Declaring the Intention to Levy and Collect the Annual Assessments for Westwood Country Landscape and Lighting Maintenance District No. 02-1 for Fiscal Year 2025-26.

Strategic Plan Priority:

This action supports Escalon 2025-2026 Strategic Plan Priority #2, Fiscal Stability. Landscape and Lighting Districts (LLDs) provide dedicated revenue for the ongoing maintenance, repair, and replacement of infrastructure and amenities in their respective neighborhoods throughout the City.

Background and Discussion:

This assessment funds the costs of maintenance and servicing of ground cover, shrubs, plants and trees, irrigation and drainage systems, graffiti removal, masonry walls, lighting facilities, playground equipment, benches, trash cans and associated appurtenant facilities. Services include all necessary service, operation, administration, and maintenance required to keep the above-mentioned improvements in a healthy, vigorous, satisfactory condition and proper working order. The assessment district was established in 2003.

The Fiscal Year (FY) 2025-26 Engineer’s Report includes updated language in the sections for Playground Equipment & Amenities, Fences and Walls (see attached Exhibit 2). The Engineer’s Report also contains updated maintenance and replacement cost estimates to reflect the LLMD’s current costs.

For FY 2025-26, staff has reevaluated and updated the actual cost of services to the LLMD in

establishing the proposed assessment rate. The assessment per single-family residential unit is proposed at $304.10, an increase of $16.72 from the prior year’s assessment of $287.38.

In FY 2025-26, the collection of the Capital Replacement Reserve Fund is proposed for the cost of replacing the playground equipment and amenities within the LLMD which, due to the costs of replacement, cannot be conveniently raised from a single annual assessment. The purpose of the fund is to gradually collect and accumulate the revenue required to complete all necessary capital replacement ensuring the safe and continued operation of public improvements for property owners to use and enjoy. The fund also helps to ensure the ability to replace the equipment at the time replacement is needed without having to close the park until funds have been collected, which could take several years to raise.

The LMD’s maximum allowable assessment for FY 2025-26 is $352.37 and is authorized to be increased 3% annually. The City has levied an annual assessment at a rate less than the maximum authorized assessment. For Fiscal Year 2025-26 the proposed assessment is $304.10, which is approximately 14% lower than the maximum assessment permitted. The City Council retains the discretion to adopt a lower assessment than the proposed assessment.

Assessment History by Fiscal Year
FY 21/22 FY 22/23 FY 23/24 FY 24/25 Proposed FY
25/26
Assessment $ 134.98 $ 137.60 $ 219.24 $ 287.38 $ 304.10 Change $ $ (3.58) $ 2.62 $ 81.64 $ 68.14 $ 16.72
Change % -3% 2% 59% 31% 6%
Comparison of Maximum and Proposed Assessment
Maximum
Assessment
Proposed
FY 25/26
Assessment
$ Below Max % Below
Max
Westwood $ 352.37 $ 304.10 $ 48.27 14%
Further details and financial analysis are available in the attached Engineer’s Report for FY 2025-26.

Fiscal Impact:

After council approval of the three attached resolutions, a public hearing will be held on July 21, 2025 to approve the FY 2025-26 budget for the Westwood Country Landscape and Lighting Maintenance District No. 02-01 and approve the associated property assessments.

Exhibits:

1. Engineer’s Report FY 2025-26 for Westwood Country Landscape and Lighting Maintenance District No. 02-1

2. Redline Excerpt of Engineer’s Report

3. Resolution Initiating Proceedings for the Annual Levy of Assessments and Ordering the Preparation of Engineer’s Reports for Westwood Country Landscape and Lighting Maintenance District No. 02-1 for Fiscal Year 2025-26

4. Resolution for Preliminary Approval of the Engineer’s Report Regarding the Proposed Levy and Collection of Assessments for Westwood Country Landscape and Lighting Maintenance District No. 02-1 for Fiscal Year 2025-26

5. Resolution Declaring the Intention to Levy and Collect the Annual Assessments for Westwood Country Landscape and Lighting Maintenance District No. 02-1 for Fiscal Year 2025-26

CITY OF ESCALON
FINAL ENGINEER’S REPORT
FISCAL YEAR 2025-26

WESTWOOD COUNTRY LANDSCAPE AND
LIGHTING MAINTENANCE DISTRICT 02-01
JUNE 2025

PREPARED BY
Harris & Associates
1401 Willow Pass Road, Suite 500
Concord, CA 94520
www.weareharris.com
EXHIBIT 1

Engineer’s Report
Westwood Country Landscape and Lighting Maintenance District City of Escalon
Fiscal Year 2025-26

TABLE OF CONTENTS
STATEMENT OF ASSESSMENT ENGINEER….……………………………………………………………..1 PART 1 – PLANS AND SPECIFICATIONS……………………………………………………………………..3 PART 2 – ESTIMATE OF COSTS………………………………………………………………………………….4 PART 3 – ASSESSMENT DIAGRAM…………………………………………………………………………….8 PART 4 – METHOD OF APPORTIONMENT………………………………………………………………...9 APPENDIX A – ASSESSMENT ROLL…………………………………………………………………………..15 APPENDIX B – DISTRICT DIAGRAM………….……………………………………………………………...20 APPENDIX C – IMPROVEMENT MAP……….……………………………………………………………...21

Engineer’s Report
Westwood Country Landscape and Lighting Maintenance District City of Escalon
Fiscal Year 2025-26
1 STATEMENT OF ASSESSMENT ENGINEER
AGENCY: CITY OF ESCALON
PROJECT: WESTWOOD COUNTRY LANDSCAPE AND LIGHTING MAINTENANCE DISTRICT TO: THE CITY COUNCIL

CITY OF ESCALON

STATE OF CALIFORNIA
ENGINEER’S REPORT FOR FISCAL YEAR 2025-26
The preparation of this Annual Engineer’s Report (“Report”) is in conformance with the obligation of the City Council, for the Westwood Country Landscape and Lighting Maintenance District, to provide landscaping services upon each lot or parcel of land in the district in proportion to the estimated benefit to be received by each such lot or parcel of land for Fiscal Year 2025-26.

Pursuant to the Landscaping and Lighting Act of 1972 (Part 2 Division 15 of the Streets and Highways Code of the State of California, commencing with Section 22500) (“Act”), Article XIIID, Section 4(a) of the State of California Constitution, and in accordance with the City of Escalon’s Resolution being adopted by the City Council for the:

WESTWOOD COUNTRY LANDSCAPE AND LIGHTING MAINTENANCE DISTRICT (Hereinafter referred to as the “District”),
I, Alison Bouley, authorized representative of the District, the duly appointed Assessment Engineer submit the following Report which consists of the following four (4) parts and Appendices:

PART 1
Description of Improvements: This part provides a general description of improvements being maintained in the District.

Plans and specifications for the improvements are on file with the City and are hereby made a part of this Report by reference.

PART 2
Estimate of Cost: This part contains the cost estimate of the proposed maintenance including incidental costs and expenses for Fiscal Year 2025-26.

PART 3
District Diagram: This part incorporates a Diagram of the District showing the external boundaries of the District. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the San Joaquin County Assessor for the year in which this Report was prepared and are incorporated by reference herein and made part of this Report. A copy of the District Diagram is included in Appendix B and has also been filed under separate cover with the office of the City Clerk.

Engineer’s Report
Westwood Country Landscape and Lighting Maintenance District City of Escalon
Fiscal Year 2025-26
2 PART 4
Method of Apportionment of the Assessments: This part describes the method of apportionment of assessments, based upon parcel classification of land within the District in proportion to the estimated special benefits to be received. The costs and expenses of the District have been assessed upon the parcels of land within the boundaries of District pursuant to the initial methodology established Resolution No. 26-03 approved on the 2nd day of June, 2003. For particulars as to the identification of parcels, reference is made to the District Diagram.

Appendices
Appendix A – Assessment Roll
Appendix B – District Diagram
Appendix C – Improvement Map
In conclusion, it is my opinion that the costs and expenses of the District have been assessed to the lots and parcels within the boundaries of the District in proportion to the estimated benefits to be received by each lot or parcel from the services provided.

DATED this 19th day of May, 2025
___________________________________________
Alison Bouley, P.E., Assessment Engineer
R.C.E. No. C61383
Engineer of Work

Engineer’s Report
Westwood Country Landscape and Lighting Maintenance District City of Escalon
Fiscal Year 2025-26
3 PART 1 – PLANS AND SPECIFICATIONS
The District was formed to provide a funding mechanism to ensure the ongoing operation, maintenance and servicing of certain landscape and lighting improvements within the boundaries of the District. Said improvements are detailed below under “Improvements and Services Provided”.

The District is within the boundaries of the City, located generally north of Crestwood Drive and the northern boundary of APN 227-320-04, south of APN numbers 227-100-14 & 15, east of McHenry Avenue and west of Santa Fe Avenue.

The District is comprised of the residential development known as Westwood Country and currently consists of one hundred eighty-one (181) single-family residential parcels and four commercial parcels, three of which are currently developed.

Improvements and Services Provided
The following are the specific improvements which are maintained and serviced within the District:
• A 6-foot masonry wall on the property line along the east side of Swanson Park. • Graffiti abatement on masonry walls within Swanson Park, on the McHenry Avenue commercial lots and the Burlington, Northern Santa Fe (“BNSF”) Railway.
• Street trees along McHenry Avenue from north to south, along property line of the development. • 38 streetlights located throughout the interior and exterior of the tract. • Street trees along interior streets of the tract.
• Wood fence along southern boundary of the District on Countrywood Lane. • Utility costs for lighting and landscaping systems.
• Landscaping improvements inside Swanson Park.
• Playground equipment (added in Fiscal Year 2012).
• Benches, trash cans and other amenities (added in Fiscal Year 2012). • Chain link fencing around pump station at Swanson Park 1 .
1 Chain link fencing around the pump station was installed as part of the development and should have been included with the other improvement items at the time of formation.

Reference is made to the plans and specifications for the improvements on file with the City and are incorporated herein by reference.

The improvements added in Fiscal Year 2012, as shown above, were completed after the City conducted a Proposition 218 assessment ballot procedure. The property owners within the District approved the acquisition, installation and continuing maintenance of said improvements, as well as a revised methodology for the commercial parcels, by a margin of 66.67% to 33.33% at a public hearing held on January 17, 2012.

The Proposition 218 procedure was necessary for two reasons. First, new improvements were proposed to be added, maintained, and serviced by the District. Second, because those improvements did not benefit the commercial parcels within the District, the existing method of apportionment within the District also needed to be revised. A complete explanation of the revised methodology can be found in Part 4 of this Report.

Engineer’s Report
Westwood Country Landscape and Lighting Maintenance District City of Escalon
Fiscal Year 2025-26
4 PART 2 – ESTIMATE OF COST
The estimated budget for the annual maintenance and servicing of the improvements and the proportionate share of administration costs of the District have been prepared based on the estimated and recent historical costs of the District.

The 2025-26 District budget is shown below.

ESTIMATE OF COST
1 The annual Capital Replacement cost of $3,666 for the playground, as shown above, represents an annual charge of approximately $19.68 per parcel/unit.
2 The annual Capital Replacement cost of $1,100 for the wood fence, as shown above, represents an annual charge of approximately $5.90 per parcel/unit.

DIRECT COSTS
Utility – Water (based on prior year consumptions w/current rates) $13,574.00 Utility – Electricity (sprinkler timers, est. @ $12.66 per month) $73.00 Maintenance - Playground Equipment, etc. 780.00
Contract Services – Street Lights (38 lights @ avg. of $5.81 each – monthly) 2,648.00 Contract Services – Park Maintenance ($1,975 monthly contract plus incidentals) (ex: tree maintenance, replacement, sprinkler repairs, etc.) Trees & Landscaping 222-6850-0272 15,598.00
Professional Services – Public Works (inspection, repairs & maintenance) 700.00 Property Tax Charges 1070.00
Special Deparment Expenses 222-6850-0205 126.00
Swanson Park Annual Rubber Bark Replenishment 0.00
Sidewalk Repair from Street Tree Damage 0.00
Direct Costs Sub-Total $42,676.22

CAPITAL REPLACEMENT COSTS
Capital Replacement (annual collection to replace playground equipment) (1) 3,666.66 Westwood Comprehensive Street Tree Trimming 2,857.14
Masonry Wall bordering Swanson Park (200') 880.00
Capital Replacement (annual collection to replace wood fence) (2) 1,100.00 Replace Chain Link Fence around pump station in Swanson Park (120') 120.00 Contingency 0.00
Capital Replacement Costs Sub-Total $8,623.80

ADMINISTRATIVE COSTS
Professional Services – Engineer (Harris & Assoc. charge of $506.25 per quarter) $2,025.00 Public Mail Notice ($1.50 per parcel) 279.00
General Government Charge (City admin fee – See Descriptions below) 1,705.00 County Administration Fee (See Descriptions below) 558.00 Rounding Adjustment (to make an even penny for tax roll purposes) 3.58 Administrative Costs Sub-Total $4,570.58
SUBTOTAL DIRECT, CAPITAL AND ADMINISTRATIVE COSTS $55,870.60 Operating Reserve Collection/(Reduction) 784.00
TOTAL BALANCE TO ASSESSMENT $56,654.60
Total Assessable Parcels/Units 186.3025
ASSESSMENT PER PARCEL/EDU $304.10
8,107.22

Engineer’s Report
Westwood Country Landscape and Lighting Maintenance District City of Escalon
Fiscal Year 2025-26
5 The 1972 Act requires that a special fund be set-up for the revenues and expenditures of the District. Funds raised by assessment shall be used only for the purpose as stated herein. A contribution to the District by the City may be made to reduce assessments or to fund costs which are greater than revenue from the assessments, as the City Council deems appropriate. Any balance or deficit remaining on July 1 must be carried over to the next fiscal year. Estimated beginning and ending fund balances for Fiscal Year 2025-26 are shown in the following table.

Section 22569 (a) of the 1972 Act allows the District assessments to “…include a reserve which shall not exceed the estimated costs of maintenance and servicing to December 10 of the fiscal year, or whenever the city expects to receive its apportionment of special assessments and tax collections from the county, whichever is later.”

DISTRICT FUND BALANCES
Description of Cost Estimate Items
The following are the specific improvements maintained and serviced within the District:
• Utility – Water: The costs to provide the water utilities to the landscape improvements within the District. • Contract Services – Park Maintenance: The contracting costs associated with a landscaping contractor to perform the landscape maintenance duties associated with the improvements within the District. Incidentals may include but are not limited to: tree replacement, sprinkler replacement or repair, etc. • Contract Services – Street Lights: The contracting costs associated with the Modesto Irrigation District to provide electricity for illumination and maintenance of the streetlights and poles within the District. • Professional Services – Public Works: Costs associated with individuals within the Public Works Department who contribute time to inspection of the improvements, necessary repairs and other maintenance. The City has budgeted to minor sidewalk repairs during the 2022-23 fiscal year, as shown on the budget page.

OPERATING RESERVE FUND
Estimated Reserve Fund Beginning Balance as of July 1, 2025 $0.00 Operating Reserve Collection – Fiscal Year 2025-26 784.00 Interest Revenue 0.00
Estimated Fund Balance Ending June 30, 2026 $784.00

CAPITAL RESERVE FUND
Capital Replacement Fund Balance as of July 1, 2025 $5,029.23 Capital Replacement Collections – Fiscal Year 2025-26 8,623.80 Interest Revenue 66.00
Estimated Fund Balance Ending June 30, 2026 $13,719.03

Engineer’s Report
Westwood Country Landscape and Lighting Maintenance District City of Escalon
Fiscal Year 2025-26
6 • Professional Services – Engineer: The contracting costs associated with hiring a company to manage and perform the annual administration duties of the District. These services include preparation of reports, resolutions, assessment rolls and budgets; preparation and placement of assessment amounts onto the County tax rolls; tracking and upkeep of the District database; answering questions for City staff and property owners; and finally, act as an expert resource in matters related to the District. • General Government Charge: Costs associated with individual City Staff and Management (City Clerk, City Council, City Manager, Finance Director, City Engineer, etc.) who contribute time to the annual administration and oversight of the District. This may include but is not limited to, preparation for and attendance of meetings, preparation and posting of public notices, budgeting, inspection, etc. This costs is calculated based on an allocation plan accepted by the City Council in June 2018, prepared by Clear Source Financial. • County Administration Fee: The County costs related to placement of the annual assessment charges onto the tax roll and the generation of annual tax bills related thereto. This charge is the lesser of $3.00 per parcel or 1% of the total levy amount submitted per District.
• Operating Reserve Collection/(Contribution): This item shows any collections which adds to the Operating Reserve Fund balance, or contributions made from the Operating Reserve Fund, to offset the annual budget. • Estimated Reserve Fund Balances: These items show the estimated Operating Reserve Fund amounts at the beginning and end of the fiscal year. The estimated ending balance reflects any collections or reductions from the estimated beginning balance.

Description of Capital Replacement Items
• Playground Equipment & Amenities (1): Funds collected on an annual basis for the eventual replacement of the playground equipment and/or amenities. This equipment has a finite life span and will require replacement after approximately 30 years. The equipment for this District was purchased in 2012 at a cost of $21,000. To account for inflation over thirty years, 2% has been added to the annual collection amount. In the year 2042, the costs to replace the equipment will have increased by an estimated 81.1%, based on Consumer Price Index data gathered from the previous 10 years. This percentage will be re-evaluated every ten years to determine if an adjustment to the annual collections is necessary. The estimated full replacement cost in 2042 is $38,039. • Wood Fence (2): Funds collected on an annual basis for the eventual replacement of the wood fence at the south-eastern boundary of the District, along Countrywood Lane. The Wood Fence has a finite life span and will require replacement after approximately 30 years. The Wood Fence was installed as part of the development in 2003 and will likely need replacement within the next 10 years. The replacement cost estimate is $19,500, in 2023 dollars. To account for inflation over the entire thirty years, 2% has been added to the annual collection amount. In the year 2033, the costs to replace the equipment will have increased by an estimated 21.9%, based on Consumer Price Index data gathered from the previous 10 years. This percentage will be re-evaluated occasionally to determine if an adjustment to the annual collections is necessary. The estimated full replacement cost in 2033 is $23,770.

Engineer’s Report
Westwood Country Landscape and Lighting Maintenance District City of Escalon
Fiscal Year 2025-26
7 • Masonry Wall (3): Funds collected on an annual basis for the eventual replacement of the masonry wall bordering Swanson Park. The wall has a finite life span and will require replacement after approximately 50 years. The Masonry Wall was installed as part of the development in 2003 and will likely need replacement within the next 30 years. The replacement cost estimate is $40,000, in 2024 dollars. To account for inflation over the next thirty years, 2% has been added to the annual collection amount. In the year 2054, the costs to replace the equipment will have increased by an estimated 81.1%, based on a 2% annual inflator. This percentage will be re-evaluated occasionally to determine if an adjustment to the annual collections is necessary. The estimated full replacement cost in 2054 is estimated at $72,454. • Chain Link Fence (4): Funds collected on an annual basis for the eventual replacement of the chain link fence around the pump station at Swanson Park. The fence has a finite life span and will require replacement after approximately 40 years. The Chain Link Fence was installed as part of the development in 2003 and will likely need replacement within the next 20 years. The replacement cost estimate is $3,600, in 2024 dollars. To account for inflation over the next twenty years, 2% has been added to the annual collection amount. In the year 2044, the costs to replace the equipment will have increased by an estimated 48.6%, based on a 2% annual inflator. This percentage will be re-evaluated occasionally to determine if an adjustment to the annual collections is necessary. The estimated full replacement cost in 2044 is $5,349.

Engineer’s Report
Westwood Country Landscape and Lighting Maintenance District City of Escalon
Fiscal Year 2025-26
8 PART 3 – ASSESSMENT DIAGRAM
A diagram showing the exterior boundaries of the District and the lines and dimensions of each lot or parcel of land within the District has been submitted to the office of the City Clerk of the City of Escalon and is hereby made a part hereof by reference.

A copy of the assessment diagram for the District is included in Appendix B of the Report.

Engineer’s Report
Westwood Country Landscape and Lighting Maintenance District City of Escalon
Fiscal Year 2025-26
9 PART 4 – METHOD OF APPORTIONMENT
General
Street and Highways Code Section 22573 requires that maintenance assessments be levied according to benefit rather than according to assessed value. This section states:
“The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.”
— Streets and Highways Code Section 22573
Definitions from Streets and Highways Code:

Section 22525 “Improvement” means one or any combination of the following:
(a) Installation and planting of landscaping
(b) The installation and construction of statuary, fountains and other ornamental structures and facilities. (c) The installation and construction of public lighting facilities, including but not limited to traffic signals. (d) The installation or construction of any facilities which are appurtenant to any of the foregoing or which are necessary or convenient for the maintenance and servicing thereof, including, but not limited to grading, clearing, removal of debris, the installation or construction of curbs, gutters, sidewalks, walls or paving, or water, irrigation, drai9nage or electrical facilities.
(e) The installation of parks or recreational improvements, including, but not limited to all of the following:
• Land preparation such as grading, leveling, cutting and filling, sod, landscaping, irrigation systems, sidewalks and drainage
• Lights, playground equipment, play courts and public restrooms (f) The maintenance or servicing or both, of any of the foregoing, and any improvement authorized by subdivision (i).
(g) The acquisition of land for park, recreational or open space purposes. (h) The acquisition of any existing improvement otherwise authorized pursuant to this section. (i) The acquisition or construction of any community center, municipal auditorium or hall, or similar public facility for the indoor presentation or performances, shows, stage productions, fairs, conventions, exhibitions, pageants, meetings, parties or other group activities or functions, whether such, activities or functions are public or private.

Section 22526 “Incidental Expenses” include all of the following:
(a) The costs and preparation of the report, including plans, specifications, estimates, diagrams and assessment.
(b) The costs of printing, advertising and giving of published, posted and mailed notices. (c) Compensation payable to the county for the collection of assessments.

Engineer’s Report
Westwood Country Landscape and Lighting Maintenance District City of Escalon
Fiscal Year 2025-26
10 (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 Section 22662.5 of the Act. (g) Any costs associated with any elections held for the approval of a new or increased assessment.

Section 22531 “Maintain” or “maintenance” include means the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of any improvement, including:
(a) Repair, removal or replacement of all or any part of any improvement (b) Providing for the life, growth, health and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing or treating for disease and injury. (c) The removal of trimmings, rubbish, debris and other solid waste. (d) The cleaning, sandblasting and painting of walls and other improvements to remove or cover graffiti.

The 1972 Act permits the designation of areas of benefit within any individual assessment district if "by reason of variations in the nature, location, and extent of the improvements, the various areas will received different degrees of benefit from the improvements." (Sec. 22574). Thus, the 1972 Act requires the levy of a true "assessment" rather than a "special tax."
In November 1996, the voters of California adopted Proposition 218, which has been codified as Articles XIIIC and XIIID of the California Constitution. Proposition 218 imposed a number of substantive and procedural requirements on taxes, assessments, and property-related fees imposed by local governments in California.

The method of apportionment described in this Report, and confirmed by the City Council, utilizes commonly accepted engineering practices established pursuant to the 1972 Act and the California Constitution for the allocation of special benefit assessments. The calculation of assessments is based upon the parcel type and the services and improvements provided to equitably apportion the costs based on the special benefit received by each lot or parcel. The special benefit received by each lot or parcel is over and above any general benefit conferred upon said lots or parcels or to the public at large.

SPECIAL BENEFIT
The improvements and associated costs have been allocated to the assessable properties within the District based upon the special benefit received by those properties. The improvements for which the properties are assessed have been identified as necessary, were installed and are being maintained as part of the development plans specifically for each tract. As such, the improvements and continuing maintenance and servicing of those improvements are strictly the obligation of the properties within the District.

General Benefit
Although the improvements may be visible to passersby or to the public at large, the improvements were installed as a condition of the development of the tract and are for the sole benefit of properties within the District. It has been determined therefore, any access or use by properties or individuals outside the District is completely incidental and the costs of operating, maintaining and servicing said improvements therefore provides no measurable benefit to outside properties or individuals.

Engineer’s Report
Westwood Country Landscape and Lighting Maintenance District City of Escalon
Fiscal Year 2025-26
11 Definition of Special Benefit
The method of apportionment described in this Report is based on the premise that each assessable parcel or unit receives distinct and special benefits from the improvements and services provided, including the visual desirability provided by well-maintained landscaping. In accordance with Article XIII D, Section 4 of the California Constitution:
“Special benefit means a particular and distinct benefit over and above general benefits conferred on real property located in the District or the public at large” The special benefits associated with local landscaping improvements are specifically:
• Enhanced desirability of properties due to proximity and accessibility of the improvements. • Improved aesthetic appeal provided by a positive representation of the development, neighborhood, and the community.
• Improved accessibility for emergency vehicles.
• Reduced vandalism and other criminal activity.

ASSESSMENT RANGE FORMULA
It is generally recognized that most budgetary items will be impacted by inflation in future years. In accordance with the California Constitution, Section 53739 (b)(1), assessments “may be adjusted for inflation pursuant to a clearly defined formula…” A formula for an inflationary adjustment is therefore included as part of the maximum assessment for this District. Said inflationary adjustment was authorized by the City Council and approved by the property owner(s) at the time of formation. The formula, as described below, allows for annual adjustments to the budget and the assessments.

To impose a new assessment or increased assessment in excess of the Maximum Assessment Rate for the current fiscal year as provided by the preceding Assessment Range Formula, the City must comply with the provisions of the California Constitution, Article XIII D, Section 4c that requires a public hearing and certain protest procedures, including mailed notice of the public hearing and property owner protest balloting. Property owners must approve the proposed new or increased assessment via a property owner protest ballot process before any such new or increased assessment can be imposed. A protest occurs when, at the public hearing, the returned assessment ballots opposed to the new or increased assessment outweigh the returned ballots in favor of the new or increased assessment, weighted according to the financial obligation of each parcel.

The definition of new or increased assessments includes any assessment which, 1) did not previously exist or, 2) exceeds a previously approved assessment amount or assessment range formula. Any assessment range formula must have been previously adopted by the agency and approved by the property owners.

The initial maximum assessment for this District was established at the time of formation and was assessed for the first time during the 2003-04 fiscal year. That initial maximum assessment was $183.90 per Equivalent Dwelling Unit (“EDU”).

This initial maximum assessment has been adjusted each subsequent fiscal year by the following Assessment Range Formula: