Item 10 - Engineer’s Report & Reso Declaring Intention to Levy & Collect Assessments within LMD 86-3 for FY 25-26 & Set Date for Public Hearing

June 3, 2025, Item #10
DATE:

TO:

FROM:

CONTACT:

SUBJECT:

Summary:

AGENDA RE PO RT City of Poway
June 3, 2025
Honorable Mayor and Members of the City so,wcil
Eric Heidemann, Director of Public Works 7"'"
Danielle McIntosh, Senior Management Analyst~
(858) 668-4729 or [email protected] I Z/

CITY COUNCIL
Engineer's Report and Resolution Declaring the Intention to Levy and Collect Assessments within Poway Landscape Maintenance District 86-3 for Fiscal Year 2025-26 and Set Date for Public Hearing
The California Landscape and Lighting Act of 1972 (ACT), and its amendments (Proposition 218) allow for the collection of assessments from parcels annexed into Landscape Maintenance District 86-3 (LMD 86-3) for the purpose of maintaining LMD 86-3's landscape improvements. In order to collect assessments, Chapter 3 of the ACT requires a resolution declaring the intention to levy and collect assessments, and an engineer's report which are included in this document as Attachment A and Attachment B, respectively. Fiscal Year (FY) 2025-26 assessment rate for LM D 86-3 Zone A is proposed to remain unchanged at the FY 2024-25 rate of $163.00 per benefit unit per year. FY 2025-26 assessment rate for LMD 86-3 Zone B is proposed to increase from the FY 2024-25 assessment rate by 3.12 percent to $93.88 per benefit unit per year, based on the annual change in the San Diego Carlsbad Consumer Price Index for All Urban Consumers (CPI).

The adoption of this resolution is the first step in a two-step process and serves to set the date for the required public hearing. The proposed assessments will not be considered for adoption until the public hearing scheduled for July 15, 2025.

Recommended Action:

It is recommended City Council adopt the Resolution to initiate the process required to levy and collect assessments for the upcoming fiscal year within Landscape Maintenance District 86-3, in accordance with state law, and to set the date for the public hearing, giving property owners the opportunity to review and comment on the proposed assessments.

Discussion:

LMD 86-3 was formed on May 20, 1986, to maintain landscape improvements required as conditions of approval for the various subdivisions or developments included within the boundaries of LMD 86-

3. A map showing LMD 86-3's boundaries is included as Attachment C. Each subdivision and/or development listed below was required to annex into LMD 86-3 as a condition of property development either through the final map process or by Council resolution. 1 of 30
June 3, 2025, Item #10
LMD 86-3 Zone A includes the following residential developments:

TRACT PROJECT NAME
TM
TTM
TTM
3994
88-03
94-02
The Pond
Sycamore Springs
Poway Oaks
LMD 86-3 Zone B includes the following residential developments:

TRACT PROJECT NAME
TPM 90-04 Walmart
TTM 90-05 Creekside Plaza
DR 02-18 Poway City Center
DR 98-07 IV AR 98-11 Poway Hyundai
TPM 01-06 Hillside Village Apartments
DR 05-05 Sciara Apartments
Section 22624 of the Streets and Highways Code requires City Council to approve an engineer's report and adopt a resolution of intention prior to establishing the annual budget. The engineer's report (Attachment B) is prepared each year by an outside engineering firm and provides a detailed, transparent analysis to support the proposed assessment. It also outlines the proposed FY 2025-26 budget and the resulting assessments.

FY 2025-26 assessments for Zone A are proposed to remain unchanged at the FY 2024-25 rate of $163 ($13.58 per month) per benefit unit per year; Zone B FY 2025-26 assessments are proposed to increase from $91.04 to $93.88 (from $7.59 per month to $7.82 per month) per benefit unit per year. There are currently 159 parcels proposed to be assessed within Zone A and 16 parcels proposed to be assessed within Zone B.

No new parcels were added to LMD 86-3 during FY 2024-25. Only those properties receiving special benefit are included on LMD 86-3's assessment roll.

In 1998, property owners within LMD 86-3 received ballots for a proposed increase as specified under assessment law. Both zones were balloted for an increase in assessments with annual cost indexing based on the annual CPI. Zone A had a majority protest for the increase, and therefore, failed to pass the ballot. Therefore, the assessment rates continue to remain unchanged and are exempt from the procedures and approval process set forth in Section 4 of Article XIII D. Zone B passed the 1998-99 ballot allowing for the option of an annual increase based on the CPI. Because projected expenditures are exceeding revenues, an increase of 3.12 percent, the annual change in the San Diego-Carlsbad Consumer Price Index for All Urban Consumers, is requested at this time for Zone B.

The failure of an assessment increase by ballot for Zone A in FY 1998-99 has led to a reduction in maintenance services. Service levels for landscape maintenance are at service level C. Service level C consists of performing landscape maintenance services (e.g., irrigation inspection, removal of trash and debris, trimming of shrubs, fertilizing, mowing, edging pruning, sweeping) for respective areas within Zone A on a monthly basis. Services may continue to be reduced to align with assessment revenue and to accommodate unexpected repair needs that arise. Compounding this challenge is the fact that LMD 86-2, Zone A is effectively operating with 1980s revenue levels while facing 2025 expenditure demands. Without an adjustment to the assessment structure, the gap between funding and actual maintenance costs will continue to grow, threatening the long-term sustainability of 2 of30
June 3, 2025, Item #10
landscape maintenance services within the district. For Zone B, service levels for landscape maintenance are at service level A. Service level A consists of performing landscape maintenance (e.g., irrigation inspection, removal of trash and debris, trimming of shrubs, fertilizing, mowing, edging pruning, sweeping) for respective areas within Zone Bon a weekly basis.

Proposition 218, passed by the California voters on November 5, 1996, expands the requirements for public notification and imposes the requirement of special district balloting. Beginning July 1, 1997, all existing, new or increased assessments shall comply with Article XIII D as added to the California Constitution. All parcels currently assessed were annexed into LMD 86-3 by owner consent at the time of development. However, this does not exempt assessment increases in future years. Subsequent increases in such assessments shall be subject to the procedures and approval process set forth in Section 4 of Article XIII D.

As required under assessment law (Landscape and Lighting Act of 1972 and its amendments), an engineer's report and assessment recommendations must be presented at a public hearing for Council consideration and public comment on an annual basis, which is scheduled for July 15, 2025.

The engineer's report (Attachment B) has been found technically correct as presented.

Environmental Review:

This action is not subject to review under the California Environmental Quality Act (CEQA).

Fiscal Impact:

LMD 86-3 Zone A does not include a voter-approved inflater which puts pressure on service levels as expenses increase over time due to inflation while revenues do not. LMD 86-3 Zone B includes a voter approved inflater which helps revenues keep pace with inflation. The assessment rate for FY 2024-25 is increasing by 3.12 percent, or the change in the annual average in the San Diego-Carlsbad Consumer Price Index for All Urban Consumers. Revenues collected at $163 per benefit unit per year for Zone A and $93.88 per benefit unit per year for Zone B, for an estimated total of $46,337, will be used for LMD 86-3's maintenance costs during FY 2025-26. A General Fund contribution of $10,319 ($1,720 for Zone A and $8,599 for Zone B) will be made based upon average square footage maintenance costs for landscaped medians and rights-of-way that provide general benefit to the City.

Public Notification:

None.

Attachments:

A. Resolution
B. Engineer's Report
C. LMD 86-3 Map
Reviewed/ Approved By:

Assistant City Manager
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Reviewed By:

Alan Fenstermacher
City Attorney
Approved By:

Ch,«.b
City Manager
June 3, 2025, Item #10
RESOLUTION NO. 25-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

POWAY, CALIFORNIA, DECLARING THE INTENTION TO LEVY

AND COLLECT ASSESSMENTS WITHIN POWAY LANDSCAPE
MAINTENANCE DISTRICT NO. 86-3 FOR FISCAL YEAR 2025-26

AND APPROVING THE ENGINEER'S REPORT
WHEREAS, the City Council of the City of Poway desires to levy and collect assessments within Poway Landscape Maintenance District No. 86-3 for the purpose of maintaining, servicing, and operating public landscape facilities located within the territory comprised of said District as shown in the Engineer's Report, included in the staff report as Attachment B, that is on file in the Office of the City Clerk, pursuant to the Landscape and Lighting Act of 1972; WHEREAS, assessments will not increase for Zone A from the Fiscal Year 2024-25 assessment rate of $163 per benefit unit per year. The assessments in Zone B will increase from the Fiscal Year 2024-25 rate of $91.04 per benefit unit per year to $93.88 per benefit unit per year, based on the annual change in the San Diego-Carlsbad Consumer Price Index for All Urban Consumers;
WHEREAS, benefit contribution has been calculated as the average General Fund expenditure on a per square foot basis for the maintenance of landscaped medians and rights-of way. The total general benefit contribution for Zones A and B has been calculated to be $10,319 ($1,720 and $8,599, respectively);
WHEREAS, under Article XIII D, Section 5(b) of Proposition 218 (adopted by general vote on November 5, 1996), the collection of Fiscal Year 2025-26 assessments is exempt from the procedures and approval process set forth in Section 4 of Article XIII D, in that the assessment was imposed pursuant to a petition signed by the persons owning all of the parcels subject to the assessment at the time the assessment was initially imposed; and WHEREAS, the public interest and convenience require the maintenance, service and operation of public landscaping within said territory.

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

SECTION 1: The foregoing recitals are true and correct.

SECTION 2: Proposed assessments are as detailed in the Engineer's Report for Poway Landscape Maintenance District No. 86-3 for Fiscal Year 2025-26 included in the staff report as Attachment B.

SECTION 3: Notice is hereby given that a public hearing is scheduled in the regular meeting place of the City Council, being the Council Chambers, City Hall, on the following date and time:

Tuesday, July 15, 2025, at 7:00 p.m.

At that time, this legislative body will hear protests or objections in reference to the annual levy of assessments and to any other matters contained in this resolution. Any persons who wish to 4 of30 ATTACHMENT A
June 3, 2025, Item #10
Resolution No. 25-

Page 2 ends

object to the proceedings or the annual levy should file a written protest with the City Clerk prior to the time set for the public hearing. If there is a majority protest against the levy of an annual assessment that is increased from the previous year, the proposed increase in the assessments shall be abandoned. A majority protest exists if, upon the conclusion of the hearing, written protests filed and not withdrawn, represent property owners owning more than 50 percent of the assessable area of land within the District.

SECTION 4: The City Clerk is hereby authorized and directed to give notice as required by law by causing a copy of this Resolution to be published in the Poway News Chieftain, a newspaper of general circulation in the City of Poway, not less than ten (10) days prior to the date set for the public hearing.

PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Poway, California on the 3rd day of June, 2025 by the following vote, to wit:

AYES:

NOES:

ABSTAINED:

ABSENT:

DISQUALIFIED:

Steve Vaus, Mayor
ATTEST:

Carrie Gallagher, CMC, City Clerk
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June 3, 2025, Item #10

CITY OF POWAY
2025/26 Engineer's Report For:

Landscape Maintenance District 86-3
May 2025
Prepared by:
2'NBS~
6 of30
helping communities
fund tomorrow
nbsgov.com ATTACHMENT B
Corporate Headquarters
32605 Temecula Parkway, Suite 100
Temecula, CA 92592
Toll free: 800.676.7516
June 3, 2025, Item #10
7 of30

CITY OF POWAY
LANDSCAPE MAINTENANCE DISTRICT 86-3
14467 Lake Poway Road
Poway, CA 92064
Phone -(858) 668-4700

CITY COUNCIL
Steve Vaus, Mayor
Peter De Hoff, Deputy Mayor
Christopher Pikus, Councilmember
Tony Blain, Councilmember
Jenny Maeda, Councilmember

CITY STAFF
Chris Hazeltine, City Manager
Wendy Kaserman, Assistant City Manager
Alan Fenstermacher, City Attorney
Eric Heidemann, Director of Public Works
Danielle McIntosh, Senior Management Analyst
NBS
Stephanie Parson, Client Services Director
Tiffany Ellis, Project Manager
Christine Drazil, Analyst
June 3, 2025, Item #10
TABLE
OF

CONTENTS

1. Engineer's
Letter
............................................................................................................. 1 2.

Introduction
................................................................................................................... 2 2.1
Background
....
....
...
...........................
........................................................................ 2 2.2
Process
for
Annual
Assessment
...........
......
.....................................
........................
2 2.3
Legislation
Context
..........................................
...
.....................................................
3 2.4
Improvements
Authorized
By
The
1972
Act
........................................................... 4 3.

Plans
and
Specifications
.................................................................................................. 6 3.1
Boundaries
of
the
District
....................................................................................... 6 3.2
Description
of
the
District
Improvements
............................................................... 6 4.

Estimate
of
Costs
............................................................................................................ 8 Zone
A ....................................................
............
.......................................
...........................
8 Zone
8 ..............
..............................................
...................................................................... 9 5.

Method
of
Apportionment
...
......................................................................................... 10 5.1
Properties
Benefiting
from
Improvements
......
.............................................
...
.....
10 5.2
General
.................................................................................................................. 10 5.3
Benefit
Analysis
..................................................................................................... 11 5.4
Assessment
Methodology
..................................................................................... 13 5.5
Maximum
Assessment
Rate
.................................................................................. 14 APPENDIX
A:

District
Assessment
Diagram
.............................................................................

APPENDIX
B:
2025/26
Assessment
Roll
..................................................................................

B
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June 3, 2025, Item #10

1. ENGINEER'S LETTER
WHEREAS, the City Council of the City of Poway (the "City"), State of California, under the Landscaping and Lighting Act of 1972 (the "Act"), directed NBS to prepare and file the annual Engineer's Report for the Landscape Maintenance District No. 86-3 (the "District") for Fiscal Year 2025/26, in accordance with Article 4 of Chapter 1 of the Act and Article XIII D of the California Constitution. The report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the administration, maintenance, operations and servicing of the improvements for Fiscal Year 2025/26, the diagram for the District, showing the area and properties to be assessed, and assessing the net amount upon the assessable lots and/or parcels within the District in proportion to the special benefit received.

NOW THEREFORE, the assessments as detailed in this Engineer's Report and as summarized in the table below are made to cover the portion of the estimated costs of maintenance, operation and servicing of said improvements to be paid by the assessable real property within the District in proportion to the special benefit received.

Parcel Total Proposed FY 2025/26
District Count Benefit Units Assessment Amount
Landscape Maintenance District No. 86-3 Zone A 159 159.00 $25,917.00 Landscape Maintenance District No. 86-3 Zone B 16 217.48 $20,419.80 I, the undersigned, respectfully submit this Engineer's Report and, to the best of my knowledge, information and belief, the Engineer's Report, Assessments, and the Assessment Diagram herein have been prepared, computed and levied in accordance with the assessment methodology adopted, approved and ordered by the City Council of the City of Poway at the time of District formation.

GNBS-
9 of30
City of Poway
John G. Egan, P. E.

Assessment Engineer
2025/26 Engineer's Report-Landscape Maintenance District 86-3 1 June 3, 2025, Item #10

2. INTRODUCTION

2.1 Background
The City annually levies and collects special assessments in order to maintain the improvements within the District, formed May 20, 1986, pursuant to the City of Poway Resolution No. 00-034 (Policies for Landscape Maintenance Districts) and the Landscape and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code ("1972 Act"), in compliance with California Constitution Article XIII D ("Article XIII D"). The 1972 Act and Article XIII Dare collectively referred to herein as "Assessment Law".

2.2 Process for Annual Assessment
As required by the procedures specified in the 1972 Act, an Engineer's Report must be prepared on an annual basis which contains a full and detailed description of the improvements, the boundaries of the assessment district and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the assessment district.

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

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

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

The City Council, upon conclusion of the public hearing must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption ofthe resolution ONBS-
City of Poway
2025/26 Engineer's Report-Landscape Maintenance District 86-3 2 10 of 30
June 3, 2025, Item #10
shall constitute the levy of an assessment for the fiscal year referred to in the assessment. If confirmed, the assessments would be submitted to the County Auditor Controller for inclusion on the property tax roll.

2.3 Legislation Context
In 1996, California voters adopted Proposition 218, known as the "Right to Vote on Taxes Act," which added Articles XIII C and XIII D to the California Constitution. Article XIII D established new substantive and procedural requirements on agencies for levying assessments, being levies on real property by an agency for a special benefit conferred upon the real property. "Special benefit" is defined in Article XIII Das "a particular and distinct benefit over and above general benefits conferred on a real property located in the district or to the public at large."
Article XIII D imposes five basic substantive requirements on assessments:
• All parcels that will have a special benefit conferred upon them and upon which an assessment will be imposed must be identified;
• The general benefits must be distinguished from the special benefits conferred on the parcels; • The proportionate special benefit derived by each identified parcel must be determined in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the property related service being provided;
• The amount assessed to a parcel must not exceed the reasonable cost of the proportional special benefit conferred on that parcel and must not include any costs attributable to the general benefit; and
• Parcels within a district that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit.

Since the initial passage of Proposition 218, several court rulings have helped provide context and direction with respect to the procedures and requirements of Article XIII D for levying assessments.

The City has reviewed the provisions of Article XIII D and has made the following findings and determinations:
• Pursuant to Article XIII D, Section 5, certain existing assessments are exempt from the substantive and procedural requirements of Article XIII D, Section 4, and property owner balloting for the assessments is not required until such time that the assessments are increased. Since the District assessments were imposed pursuant to a petition signed by the persons owning all of the parcels subject to the assessments at the time the assessments were initially imposed, Article XIII D Section 5 {b) exempts the existing assessment amounts (approved original assessment rates including any applicable annual escalation factor) from the procedural requirements of Article XIII D, Section 4; and
• The provisions of Article XIII D do not alter the non-conflicting provisions of the 1972 Act. As such, the method of apportionment described in this Report utilizes commonly accepted assessment engineering practices consistent with the 1972 Act and the provisions of Article XIII D. The proposed ONBS-
City of Poway
2025/26 Engineer's Report -Landscape Maintenance District 86-3 3 11 of 30
June 3, 2025, Item #10
assessments for the current fiscal year are less than or equal to the adjusted maximum assessment rate previously approved and adopted for the District. The application of this adjusted maximum assessment rate for the various land uses within the District is described in more detail in Section

5.5 of this Report. Any proposed assessment that exceeds the adjusted maximum assessment rate is considered an increased assessment. Pursuant to the provisions of Article XIII D, all new or increased assessments (the incremental increase) are subject to both the substantive and procedural requirements of Article XIII D, Section 4.

2.4 Improvements Authorized By The 1972 Act
As applicable or may be applicable to this proposed District, the 1972 Act defines improvements to mean one or any combination of the following:
• The installation or planting of landscaping;
• The installation or construction of statuary, fountains, and other ornamental structures and facilities;
• The installation or construction of public lighting facilities; • The installation or construction of any facilities which are appurtenant to any of the foregoing or which are necessary or convenient for the maintenance or servicing thereof, including, but not limited to, grading, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities; • The maintenance or servicing, or both, of any of the foregoing; and • The acquisition of any existing improvement otherwise authorized pursuant to this section.

Incidental expenses associated with the improvements including, but not limited to:
• The cost of preparation of the Report, including plans, specifications, estimates, diagram, and assessment;
• The costs of printing, advertising, and the publishing, posting and mailing of notices; • Compensation payable to the County for collection of assessments; • Compensation of any engineer or attorney employed to render services; • Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements;
• Any expenses incidental to the issuance of bonds or notes pursuant to Section 22662.5; and • Costs associated with any elections held for the approval of a new or increased assessment.

The 1972 Act defines "maintain" or "maintenance" to mean furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including:
• Repair, removal, or replacement of all or any part of any improvement; • Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; ONBS-
City of Poway
2025/26 Engineer's Report -Landscape Maintenance District 86-3 4 12 of 30
June 3, 2025, Item #10
• The removal of trimmings, rubbish, debris, and other solid waste; and • The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti.

ONBS-
City of Poway
2025/26 Engineer's Report-Landscape Maintenance District 86-3 5 13 of 30
June 3, 2025, Item #10

3. PLANS AND SPECIFICATIONS

3.1 Boundaries of the District
The District and Assessment Diagram, which is incorporated herein by reference and made a part of this Engineer's Report, is on file with the Special Districts Office of the Public Works Department of the City and are available for public inspection during normal business hours.

On February 25, 1992, by Council Resolution No. 92-039, Landscape Maintenance District 86-3 was divided into two zones: 86-3 Zone A ("Zone A") for residential and 86-3 Zone B ("Zone B") for commercial. Assessments for each zone of the District are being calculated by applying the zones' approved maximum assessment rate times the total units within each District zone.

No new improvements or assessed parcels were added to the District during Fiscal Year 2025/26.

Zone A is comprised of 159 residential parcels within the following developments:

TM3994
TTM 88-03
TTM 94-02
Tract Project Name
The Pond
Sycamore Springs
Poway Oaks
Zone B is comprised of 14 non-residential parcels and 2 multi-unit low-income housing apartment parcels within the following developments:

Tract Project Name
TPM 90-04
TTM 90-05
DR 02-18
DR 98-07 /VAR 98-11
TPM 01-06
DR 05-05
Wal Mart
Creekside Plaza
Poway City Center
Poway Hyundai
Hillside Village Apartments
Solara Apartments

3.2 Description of the District Improvements
The work and improvements proposed to be undertaken by the City and the cost thereof paid from the levy of the annual assessment provide special benefit to assessor parcels within the District defined in the Method of Apportionment herein. Consistent with the 1972 Act, the improvements are generally described as follows:
• The improvements to be maintained by Zone A ofthe District are defined as landscape improvements within the rights-of-ways and open space areas associated with annexed subdivisions and which are adjacent to portions of Pomerado Road, Old Pomerado Road, Metate Lane, Oak Knoll and Sage View Roads, including natural open space areas within the associated subdivisions; • The improvements to be maintained by Zone B of the District are defined as landscape improvements within the rights-of-ways and adjacent to portions of Poway, Midland, and Community Roads; and • Walls and fences adjacent to private property are to be maintained by the adjacent property owners.

The City, prior to commencement of work, shall approve repairs or reconstruction of any walls or fences adjacent to the District landscape areas. Should the property owners desire to include major City of Poway
2025/26 Engineer's Report-Landscape Maintenance District 86-3 6 June 3, 2025, Item #10
repairs or reconstruction within the District's responsibilities, the property owners are required to submit a petition to initiate the balloting process set forth in Article XIII D, Section 4.

Landscape maintenance performance standards and specifications have been developed by the City to assure quality maintenance of landscape assessment district properties. The City has defined the following service levels on the basis of how frequent landscaping maintenance is performed:
• Service Level A: Maintenance once a week;
• Service Level B: Maintenance once every other week; and • Service Level C: Maintenance once a month.

The following are each Zone's Service Level for Fiscal Year 2025/26:
• Zone A: Service Level C; and
• Zone B: Service Level B.

City of Poway
2025/26 Engineer's Report-Landscape Maintenance District 86-3 7 June 3, 2025, Item #10

4. ESTIMATE OF COSTS
Fiscal Year 2025/26 estimated costs of maintenance and servicing the improvements as described in the Plans and Specifications of this Engineer's Report are summarized below.

Zone A
Fiscal Year
Description of Annual Costs 2023/2411)
EXPENDITURES:

Maintenance $8,695
Water/power $8,360
Administration14l $2,477
Total Expenditures $19,532
REVENUES:

City General Benefit Contribution $1,591
Assessment Revenue $25,717
Interest Revenue $1,663
Miscellaneous $0
Total Revenues $28,971
DISTRICT STATISTICS:

Total Number of Parcels 159
Total Parcels Levied 159
Total EBU's 159
Rate per EBU (Equivalent Benefit Units) $163.00
Maximum Rate per EBU $163.00
OPERATING RESERVE:

Beginning Reserve Balance $11,347
Transfers In/Out (CIP) ($3,390)
Reserve Fund Activity $4,190
Estimated Ending Reserve Balance $12,147
CAPITAL IMPROVEMENT RESERVE:

CIP Fund Balance $69,370
CIP Transfers In/Out (Operating Reserve) $3,390
Estimated Ending CIP Reserve Balance $72,760
(1) Actual figures per Finance Fiscal Year 2023/24 activity sheets. (2) Approved budget.
(3) Proposed budget.
(4) Includes cost allocation City staff support services.

City of Poway
2025/26 Engineer's Report-Landscape Maintenance District 86-3 Fiscal Year Fiscal Year
2024/25(2) 2025/2613)
$9,364 $9,596
$16,917 $23,527
$3,488 $3,488
$29,769 $36,611
$1,668 $1,720
$25,917 $25,917
$1,028 $1,346
$0 $0
$28,613 $28,983
159 159
159 159
159 159
$163.00 $163.00
$163.00 $163.00
$12,147 $12,565
($2,915) $13,369
$3,333 ($7,629)
$12,565 $18,305
$72,760 $75,675
$2,915 ($13,369)
$75,675 $62,306
8 June 3, 2025, Item #10
Zone
B
Fiscal
Vear
Description
of
Annual
Costs
2023/241
1)
EXPENDITURES:

Maintenance
$16,782
Water/power
$10,081
Administration1
41 $4,404
Total
Expenditures
$31,267
REVENUES:

City
General
Benefit
Contribution
$7,953
Assessment
Revenue
$18,878
Interest
Revenue
$2,469
Miscellaneous
$0
Total
Revenues
$29,300

DISTRICT
STATISTICS:

Total
Number
of
Parcels
16 Total
Parcels
Levied
16 Total
EBU's
217.48
Rate
per
EBU
(Equivalent
Benefit
Units)
$86
.62
Maximum
Rate
per
EBU
$149.16

OPERATING
RESERVE:

Beginning Reserve
Balance
$18,354
Transfers
In/Out
(CIP)
$1,185
Reserve
Fund
Activity
($3,113)
Estimated
Ending
Reserve
Balance
$16,426

CAPITAL

IMPROVEMENT
RESERVE:

CIP
Fund
Balance
$112,052
CIP
Transfers
In/Out
(Operating
Reserve)
($1,185)
Estimated
Ending
CIP
Reserve
Balance
$110,867
(1)
Actual
figures
per
Finance
Fiscal
Year
2023/24
activity
sheets.
(2)
Approved
budget
.
(3)
Proposed
budget
.
(4)
Includes
cost
allocation
City
staff
support
services
Fiscal
Vear
Fiscal
Vear
2024/251
2)
2025/261
3)
$18,140 $18,586 $13,121
$13,153
$6,257
$6,257
$37,518 $37,996 $8,343
$8,599
$19,799
$20,420
$1,515 $1,992
$0
$0
$29,657 $31,011
16 16
16 16
217.48
217.48
$91.04
$93.88
$156.78
$161.69
$16,426
$17,708
$6,397
$8,278
($5,115)
($6,988)
$17,708
$18,998
$110,867
$104,470
($6,397)
($8,278)
$104,470
$96,192
Note:

The
Fiscal
Year
2025/26
Rate
per
EBU
of
$93.88
is
an
amount
rounded
down
to
even
cents
and
includes
an
increase
of

3.12%
based
on
the
San
Diego-Carlsbad
Consumer
Price
Index,
All
Urban
Consumers
City
of
Poway
2025/26
Engineer's
Report
-
Landscape
Maintenance
District
86-3
9 June 3, 2025, Item #10

5. METHOD
OF

APPORTIONMENT
The
following
section
of
the
Engineer's
Report
includes
an
explanation
of
the
benefits
to
be
derived
from
the
installation,
maintenance
and
servicing
of
the
improvements
throughout
the
District,
as
well
as
a description
of
the
assessment
methodology
used
to
apportion
the
total
assessment
to
properties
within
each
District.

Historical
annual
Engineer's
Reports
were
prepared
by
a different
engineer
of
record
and
specific
language
from
those
historical
Engineer's
Reports
have
been
referenced
to
describe
the
Method
of
Apportionment
within
the
following
section
of
this
report.

5.1 Properties
Benefiting
from
Improvements
The
properties
determined
to
receive
benefit
are
those
lots
or
parcels
that,
as
a
result
of
development
or
redevelopment,
finance,
construct,
install,
and/or
establish
landscape
improvements
within
public
rights-of
ways
or
public
easements
(permanent
public
improvement)
or
adjoining
lots
or
parcels
that,
as
a
result
of
development
or
redevelopment,
receive
access
or
are
immediately
adjacent
to
lots
or
parcels
which
contain
landscape
improvements
maintained
by
a landscape
maintenance
district
.

Special
benefit,
as
defined
in
Assessment
Law
and
in
this
Report,
shall
be
assessed
to
those
properties
determined
to
receive
benefit
from
the
District's
improvements.

5.2 General
The
1972
Act
permits
the
establishment
of
assessment
districts
by
agencies
for
the
purpose
of
providing
certain
public
improvements
that
include
the
construction,
maintenance
and
servicing
of
public
lights,
landscaping
and
appurtenant
facilities.

The
1972
Act further
requires
that
the
cost
of
these
improvements
be
levied
according
to
benefit
rather
than
assessed
value
:

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.

The
formula
used
for
calculating
assessments
in
this
District
therefore
reflects
the
composition
of
the
parcels,
and
the
improvements
and
services
provided,
to
fairly
apportion
the
costs
based
on
benefit
to
each
parcel.

In
addition,
Article
XIII
D
requires
that
a
parcel's
assessment
may
not
exceed
the
reasonable
cost
of
the
proportional
special
benefit
conferred
on
that
parcel.

Article
XIII
D
provides
that
only
special
benefits
are
assessable
and
the
City
must
separate
the
general
benefits
from
the
special
benefits.

A
special
benefit
is
a
particular
and
distinct
benefit
over
and
above
general
benefits
conferred
on
the
public
at
large,
including
real
property
within
the
district
. The
general
enhancement
of
property
value
does
not
constitute
a special
benefit.

City
of
Poway
2025/26
Engineer's
Report-
Landscape
Maintenance
District
86-3
10 June 3, 2025, Item #10

5.3 Benefit Analysis
Each of the improvements, the associated costs and assessments within the District has been reviewed, identified and allocated based on the special benefit parcels receive from such improvements pursuant to the provisions of Article XIII D and the 1972 Act. All improvements associated with this District have been identified as necessary, required and/or desired for the orderly development of the properties within the District to their full potential, consistent with the proposed development plans. As such, these improvements would be necessary and required of individual property owners for the development of such properties, and the ongoing operation, servicing and maintenance of these improvements would be the financial obligation of those properties. Therefore, the improvements and the annual costs of maintenance and operation of the improvements are of special benefit to the properties.

All the lots or parcels are established at the same time once the conditions regarding the improvements and the continued maintenance are met. As a result, each lot or parcel within the District receives a special and distinct benefit from the improvements and to the same degree.

Over time, the improvements continue to confer a particular and distinct special benefit upon the lots or parcels within the District because of the nature of the improvements. The proper maintenance of the improvements and appurtenant facilities reduces property related crimes, especially vandalism, against properties in the District. All of the above mentioned factors also contribute to a specific benefit to each of the parcels within the District.

The method of apportionment (method of assessment) is based on the premise that each assessed parcel within the District receives benefit from the improvements. However, each individual improvement element has its own distinct benefits both specific and general. The special benefits associated with the improvements within the District are listed below.

5.3.1 SPECIAL BENEFIT
The special benefits associated with the landscaping improvements in the District are specifically:
• Enhanced desirability of properties through association with the improvements; • Improved aesthetic appeal of properties providing a positive representation of the area; • Enhanced adaptation of the urban environment within the natural environment from adequate green space, open space areas and landscaping;
• Environmental enhancement through improved erosion resistance, dust and debris control, and fire prevention;
• Increased sense of pride in ownership of property within the District resulting from well-maintained improvements associated with the properties;
• Reduced criminal activity and property-related crimes (especially vandalism) against properties in the District through well-maintained surroundings and amenities including abatement of graffiti; and • Enhanced environmental quality of the parcels by moderating temperatures, providing oxygenation and attenuating noise.

City of Poway
2025/26 Engineer's Report-Landscape Maintenance District 86-3 11 June 3, 2025, Item #10

5.3.2 GENERAL BENEFIT
Assessment Law mandates that the City assesses for special benefit only, and the City shall separate general benefit from special benefit. General benefit is defined as services provided to the public at large. Special benefit is defined as services provided at a level greater than the services provided to the public at large.

The City's general benefit to the public at large is determined as the average expenditure from the General Fund for the maintenance of landscaped medians and rights-of-ways, calculated on a per square foot basis.

The City shall make a general benefit contribution to a district based on the City's average rate of expenditure from the General Fund for the various types of improvements applied to the square footage of similar types of improvements within the District.

No new improvements are proposed to be added for Fiscal Year 2025/26.

Zone A:

Zone B:
~fi·l·Hfi·liiMi:hi\--,-•i'H:\ii&~
Landscaped Medians 22,913 Sq. Ft.

The City shall annually determine the average expenditure from the General Fund for the maintenance of landscape improvements within the public right-of-ways or public easements, calculated on a per square foot basis. The general benefit for Fiscal Year 2025/26 is determined to be:
• $0.1559 per square foot for landscape rights-of-ways; and • $0.3753 per square foot for landscape medians.

The City shall determine the average expenditure from the General Fund for the maintenance of District landscape improvements. Based on an increase of 3.08% in the San Diego-Carlsbad Consumer Price Index (the average of All Urban Consumers and Urban Wage Earners and Clerical Workers), comparable services provided by the City staff for general landscape services, the general benefit for Fiscal Year 2025/26 will increase from Fiscal Year 2024/25, based on the contribution rate per square foot, at a maximum for this District.

Zone A:

Zone B:

All other maintenance, operation, administrative, and incidental costs which exceed the City's general benefit contribution to the public at large are of special benefit and assessed to the District.

The City shall have an option as to how it will make the general benefit contributions to the District. The City shall make its general benefit contribution by either:

City of Poway
2025/26 Engineer's Report-Landscape Maintenance District 86-3 12 June 3, 2025, Item #10
• Providing irrigation water to the District for irrigation of LMD improvements in an amount equal to the City's general benefit contribution; or
• Paying directly to the District from the General Fund a dollar amount equal to the City's general benefit contribution.

5.4 Assessment Methodology
The total cost of special benefit for maintenance of the public improvements funded by the District will be assessed to the various parcels in the District in proportion to the benefit units assigned to each parcel, in relationship to the total benefit units assigned to all parcels being assessed.

5.4.1 RESIDENTIAL LAND USE
All residential subdivisions shall be assessed proportional to special benefit received based on one (1) benefit unit per residential dwelling unit or planned dwelling unit.

5.4.2 NON-RESIDENTIAL LAND USES
All non-residential parcels shall be assessed proportional to special benefit received based on the average planned dwelling unit density throughout the urban areas of the City (four dwelling units per acre), the equivalent of four (4) benefit units per acre. Non-residential land uses typically provide services and/or employment opportunities for the City that benefit all lands throughout the City. Since these non-residential land uses can occur throughout the City, the planned, average density of residential dwelling units per acre for the urban areas of the City has been calculated. The non-residential land uses are considered to dislocate residential units. Therefore, the number of residential dwelling units dislocated, based on the average dwelling units per acre, has been assigned to non-residential lands. This method determines an equivalent benefit to residential land uses. Urban areas have been defined as the parcels receiving water and sewer services.

5.4.3 IN-LIEU ASSESSMENTS
Under provisions of City policy, parcels may contribute in-lieu assessments by providing equivalent maintenance services for District improvements within public rights-of-ways or public easements immediately adjacent to their lands.

No parcels within the District are scheduled to contribute in-lieu assessments in Fiscal Year 2025/26.

5.4.4 NON-BENEFITING PARCELS
All public and private streets, avenues, lanes, roads, drives, courts, alleys, all public easements and rights-of ways, all dedicated open space parcels, and District maintained parcels are determined to not receive special benefit from the District's improvements and are therefore not assessed.

5.4.5 BENEFITS UNITS (BU)
As described above, the number of assessable benefit units attributable to each parcel receiving special benefit has been calculated and can be found in the Assessment Roll in Appendix B ofthis Engineer's Report.

The assessment methodology utilized is as described above. Based on this methodology, the benefit units, City of Poway
2025/26 Engineer's Report-Landscape Maintenance District 86-3 13 June 3, 2025, Item #10
and the Fiscal Year 2025/26 proposed assessment for each parcel were calculated and are shown in Appendix B:
• The calculated Fiscal Year 2025/26 assessment for Zone A is proposed to remain at the Fiscal Year 2024/25 assessment rate of $163.00 per benefit unit; and • The calculated Fiscal Year 2025/26 assessment for Zone Bis proposed to increase by 3.12% based on the San Diego Consumer Price Index (SD-CPI), All Urban Consumers from the Fiscal Year 2024/25 assessment rate to $93.88 per benefit unit.

5.5 Maximum Assessment Rate
In 1998, property owners within the District received ballots as specified under Assessment Law. Zones A and B were balloted for an increase in assessments, including yearly cost indexing adjustments based on the San Diego-Carlsbad Consumer Price Index (SD-CPI), All Urban Consumers. An assessment rate increase for Zone A failed under the balloting process of property owners. Zone B property owners voted for an increase in assessment rates and also approved any necessary future assessment increases based on related SD-CPI, All Urban Consumers. The maximum assessment rate for Zone A remains unchanged at $163.00 per benefit unit for Fiscal Year 2025/26. The maximum assessment rate for Zone Bis $161.69, which is a 3.12% increase based on the SD-CPI, All Urban Consumers.

The maximum assessment rate establishes an approved upper limit on the annual assessment; however, the assessment rate levied by the District may be less than the maximum amount in any given year if not required to meet the budgetary needs for that year. If the long-term budgetary needs of the District would require an increase in the rate greater than the maximum assessment rate in order to meet those needs, then any proposed increase in the maximum assessment rate would require property owning balloting procedures as dictated by Article XIII D.

City of Poway
2025/26 Engineer's Report-Landscape Maintenance District 86-3 14 June 3, 2025, Item #10
APPENDIX A: DISTRICT ASSESSMENT DIAGRAM
The boundaries of the District have been prepared in the format required by the 1972 Act and is on file with the Special Districts Office of the Public Works Department, and by reference is made part of this Engineer's Report. The Assessment Diagram is available for inspection at the Special Districts Office of the Public Works Department, during normal business hours.
··-i
i
i
i
i
i
i § :................... i
i " . ~
! 0
City of Poway
City of Poway I
LMD 86-3 :

C.Otl1,yS..
2025/26 Engineer's Report-Landscape Maintenance District 86-3 Legend
.....
i.,~C1ty Boundary
L lMDZonoA
r--LMD Zone B
A
June 3, 2025, Item #10
APPENDIX B: 2025/26 ASSESSMENT ROLL
Assessor's parcel identification, for each lot or parcel subject to the assessment, shall be based on the County Assessor's secured roll data for the applicable year in which this report is prepared and is incorporated herein by reference.

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

City of Poway
2025/26 Engineer's Report-Landscape Maintenance District 86-3 B June 3, 2025, Item #10
APN
316-320-02-00
316-320-03-00
316-320-04-00
316-320-05-00
316-320-06-00
316-320-07-00
316-320-08-00
316-320-09-00
316-320-10-00
316-320-11-00
316-320-12-00
316-320-13-00
316-320-14-00
316-320-15-00
316-320-16-00
316-320-17-00
316-320-18-00
316-320-19-00
316-320-20-00
316-320-21-00
316-320-22-00
316-320-23-00
316-320-24-00
316-320-25-00
316-320-26-00
316-320-27-00
316-320-28-00
316-320-29-00
316-320-30-00
316-320-31-00
316-320-32-00
316-320-33-00
316-320-34-00
316-320-36-00
316-321-01-00
316-321-02-00
316-321-03-00
316-321-04-00
316-321-05-00
316-321-06-00
316-321-07-00
316-321-08-00
Slight variances may occur due to rounding
Copyright© 2013 by NBS
25 of 30
City of Poway
Landscape Maintenance District 86-3 Zone A
2025/26 Assessment Roll
EBU Landuse

1.00 Residential

Page 1 of 5 ends

Grand Total
$163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
04/30/2025 02:13:59PM
June 3, 2025, Item #10
APN
316-321-09-00
316-321-11-00
316-321-12-00
316-321-13-00
316-321-14-00
316-321-15-00
316-321-16-00
316-321-17-00
316-321-18-00
316-321-19-00
316-321-20-00
316-321-21-00
316-321-22-00
316-321-23-00
316-321-24-00
316-321-25-00
316-321-26-00
316-321-27-00
316-321-28-00
316-321-29-00
316-321-30-00
316-321-31-00
316-321-32-00
316-321-33-00
316-321-35-00
317-211-05-00
317-211-06-00
317-211-07-00
317-211-08-00
317-211-09-00
317-211-10-00
317-211-11-00
317-211-12-00
317-211-13-00
317-211-14-00
317-211-15-00
317-211-16-00
317-211-17-00
317-211-18-00
317-211-19-00
317-211-20-00
317-211-21-00
Slight variances may occur due to rounding
Copyright © 2013 by NBS
26 of 30
City of Poway
Landscape Maintenance District 86-3 Zone A
2025/26 Assessment Roll
EBU Landuse

1.00 Residential

Page 2 of 5 ends

Grand Total
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
04/30/2025 02:13:59PM
June 3, 2025, Item #10
APN
317-211-22-00
317-211-23-00
317-211-24-00
317-211-25-00
317-211-26-00
317-211-27-00
317-211-28-00
317-211-29-00
317-211-30-00
317-211-31-00
317-211-32-00
317-211-33-00
317-211-34-00
317-211-35-00
317-211-36-00
317-211-37-00
317-211-38-00
317-211-39-00
317-211-40-00
317-211-42-00
317-211-43-00
317-211-44-00
317-211-45-00
317-211-46-00
317-211-47-00
317-211-48-00
317-211-49-00
317-211-50-00
317-211-51-00
317-211-52-00
317-211-53-00
317-211-54-00
317-211-55-00
317-211-56-00
317-211-57-00
317-211-58-00
317-211-59-00
317-211-60-00
317-211-61-00
317-211-62-00
317-211-63-00
317-211-64-00
Slight variances may occur due to rounding
Copyright© 2013 by NBS
27 of 30
City of Poway
Landscape Maintenance District 86-3 Zone A
2025/26 Assessment Roll
EBU Landuse

1.00 Residential

Page 3 of 5 ends

Grand Total
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
163.00
04/30/2025 02:13:59PM
June 3, 2025, Item #10
APN
317-211-65-00
317-211-66-00
317-211-67-00
317-792-01-00
317-792-02-00
317-792-03-00
317-792-04-00
317-792-05-00
317-792-06-00
317-792-07-00
317-792-08-00
317-792-09-00
317-792-10-00
317-792-11-00
317-792-12-00
317-792-13-00
317-792-14-00
317-792-15-00
317-792-16-00
317-792-17-00
317-792-18-00
317-792-19-00
317-792-20-00
317-792-21-00
317-792-22-00
317-792-23-00
317-792-24-00
317-792-25-00
317-792-26-00
317-792-27-00
317-792-28-00
317-792-29-00
317-792-30-00
159 Accounts
Slight variances may occur due to rounding
Copyright© 2013 by NBS
28 of30
City of Poway
Landscape Maintenance District 86-3 Zone A
2025/26 Assessment Roll
EBU Landuse Grand Total

1.00 Residential 163.00

1.00 Residential 163.00
159.00 $25,917.00

Page 4 of 5 ends

June 3, 2025, Item #10
APN
317-101-53-00
317-130-47-00
317-130-67-00
317-130-68-00
317-130-72-00
317-190-44-00
317-480-20-00
317-820-01-00
317-820-02-00
317-820-03-00
317-820-04-00
317-820-05-00
317-820-06-00
317-820-07-00
317-820-08-00
317-820-09-00
16 Accounts
City of Poway
Landscape Maintenance District 86-3 Zone B
2025/26 Assessment Roll
EBU Landuse
Multi-Unit Low-Income Housing

10.04 Apartment

36.28 NonResidential

2.64 NonResidential

5.44 NonResidential

65.96 NonResidential

6.68 Non Residential
Multi-Unit Low-Income Housing

30.32 Apartment

3.68 Non Residential

2.76 Non Residential

2.76 NonResidential

17.44 Non Residential

6.16 NonResidential

3.24 NonResidential

3.68 Non Residential

3.28 NonResidential

Page 5 of 5 ends

Grand Total
$942.68
3,406.44
247.86
510.78
6,193.20
627.20
2,846.84
345.52
259.14
259.14
1,637.50
578.38
304.20
345.52
307.96
1,607.44
$20,419.80
$46,336.80
04/30/2025 02:13:59PM
June 3, 2025, Item #10
City of
San Diego
City of
• San Diego
30 of 30
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Poway City CouncilJune 3, 2025

Poway City Council
June 3, 2025