Item 11 - Engineer’s Report & Reso Declaring Intention to Levy & Collect Assessments within LMD 87-1 for FY 25-26 & Set Date for Public Hearing

June 3, 2025, Item #11
DATE:

TO:

FROM:

CONTACT:

SUBJECT:

Summary:

AGENDA RE PQ RT City of Poway
June 3, 2025
Honorable Mayor and Members of the City C~ncil
Eric Heidemann, Director of Public Works 1
Danielle McIntosh, Senior Management Anal~N\.,
(858) 668-4729 or [email protected] r 6/

CITY COUNCIL
Engineer's Report and Resolution Declaring the Intention to Levy and Collect Assessments within Poway Landscape Maintenance District 87-1 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 87-1 (LMD 87-1) for the purpose of maintaining LMD 87-1'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. The Fiscal Year (FY) 2025-26 assessment rate for LM D 87-1 is proposed to remain unchanged at the FY 2024-25 rate of $210.68 per benefit unit per year.

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 87-1, 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 87-1 was formed on January 27, 1987, to maintain landscape improvements installed in conjunction with new subdivisions within the boundaries of LMD 87-1. A map showing LMD 87-1's boundaries is included as Attachment C. Each subdivision and/or development listed below was required to annex into LMD 87-1 as a condition of property development either through the final map process or by Council resolution.
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June 3, 2025, Item #11
LMD 87-1 includes the following residential developments:

TRACT PROJECT NAME
TTM
TTM
88-04R
97-03
LMD 87-1 residential developments continued:

Rolling Hills Estates I and II
Valencia

TRACT PROJECT NAME
TPM
TTM
TPM
TPM
98-07
98-07
04-02
01-05
Kimball
Aviano/Bothwell
Rexford
Dynasty Development
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 assessment rate is proposed to remain unchanged at the FY 2024-25 rate of $210.68 ($17.55 per month) per benefit unit per year. There are currently 196 parcels proposed to be assessed within LMD 87-1.

No new parcels were added to LMD 87-1 during FY 2024-25. Only those properties receiving special benefit are included on LMD 87-1's assessment roll.

On May 21, 2019, a ballot measure was proposed and passed, to reorganize LMD 87-1 to form a new landscape maintenance district (LM D 19-1) by detaching 327 commercial properties. The existing residential development areas within LMD 87-1 remained as LMD 87-1. Certain improvements provide a shared benefit to properties in LMD 87-1, and other adjacent properties, and are therefore equally funded by LMD 87-1 and other sources (LM D 19-1 and/or the General Fund). For a full description of these shared improvements, please refer to the engineer's report.

LM D 87-1 currently has no approved escalation factor for increasing the maximum assessment rate.

In FY 2021-22, service levels for landscape maintenance were reduced from a service level B to a service level C to align expenses with assessment revenue. For FY 2025-26, service levels for landscape maintenance are at service level C. Service level C 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 LMD 87-1 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 87-1 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 landscape maintenance services within the district.

Proposition 218, passed by 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 2 of28
June 3, 2025, Item #11
Environmental Review:

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

Fiscal Impact:

LMD 87-1 does not include a voter-approved inflator which puts pressure on service levels as expenses increase over time due to inflation while revenues do not. The assessment rate shall remain at the FY 2024-25 rate. Revenues collected at the rate of $210.68 per benefit unit per year, an estimated total of $41,293, will be used for LMD 87-1 maintenance costs during FY 2025-26. A General Fund contribution of $6,183 will be made based upon average maintenance costs for the 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 87-1 Map
Reviewed/Approved By:

Wend aserman
Assistant City Manager
3 of28
Reviewed By:

Alan Fenstermacher
City Attorney
Approved By:

Chr~
City Manager
June 3, 2025, Item #11
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. 87-1 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. 87-1 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 from the Fiscal Year 2024-25 assessment rate of $210.68 per benefit unit per year for the residential properties of Rolling Hills Estates I and II, Valencia, Kimball, Aviano/Bothwell, Rexford and Dynasty Development; WHEREAS, under Article XIII D, Section 4 of the California Constitution, a City general 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. This general benefit contribution for LMD 87-1 has been calculated to be $6,183; 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. 87-1 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 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 4of28 ATTACHMENT A
June 3, 2025, Item #11
Resolution No. 25-

Page 2 ends

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 #11
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CITY OF POWAY
2025/26 Engineer's Report For:

Landscape Maintenance District 87-1
May 2025
Prepared by:
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 #11
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CITY OF POWAY
LANDSCAPE MAINTENANCE DISTRICT 87-1
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 #11

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 Detachment Proceedings ........................................................................................ 6

3.3 Description of the District Improvements ............................................................... 6

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

5. Method of Apportionment .............................................................................................. 9

5.1 Properties Benefiting from Improvements ............................................................. 9

5.2 General .................................................................................................................... 9

5.3 Benefit Analysis ....................................................................................................... 9

5.4 Assessment Methodology ..................................................................................... 11

5.5 Maximum Assessment Rate .................................................................................. 12 APPENDIX A: District Assessment Diagram ............................................................................. A APPENDIX B: 2025/26 Assessment Roll .................................................................................. B 8 of28
June 3, 2025, Item #11

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. 87-1 (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.

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. 9 of28
City of Poway
John G. Egan, P. E.

Assessment Engineer
2025/26 Engineer's Report-Landscape Maintenance District 87-1 1 June 3, 2025, Item #11

2. INTRODUCTION

2.1 Background
The City annually levies and collects special assessments in order to maintain the improvements within the District, formed January 27, 1987. The District is levied 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 D are 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 bf 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.

ONBS-
City of Poway
2025/26 Engineer's Report-Landscape Maintenance District 87-1 2 10 of 28
June 3, 2025, Item #11
The City Council, upon conclusion of the public hearing must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the 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 im'provement, 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 ONBS-
City of Poway
2025/26 Engineer's Report-Landscape Maintenance District 87-1 3 11 of28
June 3, 2025, Item #11
engineering
practices
consistent
with
the
1972
Act
and
the
provisions
of
Article
XIII
D.

The
proposed
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
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
of
San
Diego
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;
O
NBS
-
City
of
Poway
2025/26
Engineer
's Report-
Landscape
Maintenance
District
87-1
4 12
of
28 June 3, 2025, Item #11
• Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; • The removal of trimmings, rubbish, debris, and other solid waste; and • The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti.

ONBS-
City of Poway
2025/26 Engineer's Report-Landscape Maintenance District 87-1 5 13 of 28
June 3, 2025, Item #11

3. PLANS
AND

SPECIFICATIONS

3.1 Boundaries
of
the
District
The
District
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
of
Poway
and
are
available
for
public
inspection
during
normal
business
hours
.

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

3.2 Detachment
Proceedings
In
a
separate
proceeding
undertaken
by
the
City
of
Poway,
on
May
21,
2019
the
City
Council
of
the
City
of
Poway
conducted
a public
hearing
and
ballot
proceeding
for
the
formation
of
Landscape
Maintenance
District
No
. 19-1
("LMD
No.
19-1")
pursuant
to
the
provisions
of
the
Landscape
and
Lighting
Act
of
1972
and
in
compliance
with
the
substantive
and
procedural
requirements
of
Article
XIII
D,
Section
4 of
the
California
State
Constitution
and
the
Proposition
218
Omnibus
Implementation
Act
.

In
conjunction
with
the
approved
formation
of
LMD
No.
19-1
the
City
directly
reorganized
the
previously
established
LMD
No.
87-1
by
detaching
certain
territory
(parcels
and
improvements)
from
LMD
No
. 87-1,
which
are
now
incorporated
in
LMD
No.
19-

1. As
part
of
this
formation
and
reorganization,
the
existing
residential
development
areas
within
LMD
No.
87-1
(residential
territories)
remain
part
of
LMD
No.
87-1.

This
residential
territory
includes
the
parcels
comprising
the
Valencia
Creek
Condominiums
located
west
of
Pomerado
Road
and
north
of
Scripps
Poway
Parkway;
the
single-family
residential
development
area
identified
as
Map
13542
-Poway
TCT
No
. 88-04R
and
Map
13364
-Poway
TCT
No.
88-04R
located
west
of
Pomerado
Road
and
south
of
Scripps
Poway
Parkway;
and
various
residential
properties
located
between
Pomerado
Road
and
Creek
Road
north
of
Beeler
Canyon
Road
. The
parcels
within
these
residential
territories
now
comprise
all
the
parcels
and
improvements
of
LMD
No
. 87-1
.

These
change
proceedings
were
made
to
better
address
the
estimated
special
benefit
improvement
costs
and
proportional
special
benefits
received
by
each
property
associated
with
the
various
improvements
being
provided
in
the
area.

These
changes
did
not
increase
the
amount
paid
annually
by
any
property
owner
remaining
in
LMD
No.
87-1
and
did
not
change
the
nature
or
extent
of
the
improvements
directly
associated
with
the
residential
parcels
in
LMD
No.
87-1,
or
the
maintenance
to
be
provided.

The
location
and
extent
of
the
improvements
and
revised
boundaries
of
LMD
No.
87 -1
are
shown
in
the
District
Diagram
contained
in
Appendix
A
of
this
Report
.

3.3 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:

City
of
Poway
2025/26
Engineer's
Report
-
Landscape
Maintenance
District
87-1
6 June 3, 2025, Item #11
•
The
improvements
to
be
maintained
by
the
District
are
defined
as
landscape
improvements
associated
with
annexed
subdivisions
that
are
adjacent
to
portions
of
Pomerado
Road,
Scripps
Poway
Parkway,
and
Treadmill
Drive
and
the
entryway
side-panels
on
Stonemill
Drive.

These
improvements
include
rights-of-ways
and
roadway
medians.
•
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
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. Certain
improvements
listed
above
provide
a shared
benefit
to
properties
in
the
District
and
other
adjacent
properties
and
are
therefore
equally
funded
by
the
District
and
other
sources
(Landscape
Maintenance
District
19-1
and/or
the
General
Fund).

For
a full
description
of
these
shared
improvements,
please
refer
to
the
Landscape
Maintenance
District
19-1
Engineer's
Report.

Please
also
refer
to
Appendix
A
in
this
Report
for
the
location
of
these
shared
improvements.

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
District
is
within
Service
Level
C
for
Fiscal
Year
2025/26.

City
of
Poway
2025/26
Engineer's
Report-
Landscape
Maintenance
District
87-1
7 June 3, 2025, Item #11

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.

Description of Annual Costs
EXPENDITURES:

Maintenance
Water/power
Ad min istration14l
Total Expenditures
REVENUES:

City General Benefit Contribution
Assessment Revenue
Interest Revenue
Miscellaneous
Total Revenues
DISTRICT STATISTICS:

Total Number of Parcels
Total Parcels Levied
Total Number of Benefit Units
Rate per Benefit Unit
Maximum Rate per Benefit Unit
OPERATING RESERVE:

Beginning Reserve Balance
Transfers In/Out (CIP)
Reserve Fund Activity
Estimated Ending Reserve Balance
CAPITAL IMPROVEMENT FUND (CIP):

CIP Fund Balance
CIP Transfers In/Out (Operating Reserve)
Cl P Projects
Estimated Ending CIP Reserve Balance
(1) Actual budget.
(2) Estimated budget.
(3) Proposed budget.

Fiscal Year
2023/2411)
$16,835
$4,402
$4,831
$26,068
$6,031
$41,293
$2,815
$0
$50,139
210
196
196.00
$210.68
$210.68
$12,066
($11,526)
$15,852
$16,392
$108,328
$11,526
$0
$119,854
(4) Includes cost allocation City staff support services.

City of Poway
2025/26 Engineer's Report-Landscape Maintenance District 87-1 Fiscal Year Fiscal Year
2024/2512) 2025/26(3)
$18,145 $18,620
$9,682 $9,699
$6,702 $6,702
$34,529 $35,021
$5,974 $6,183
$41,293 $41,293
$2,007 $2,411
$0 $0
$49,274 $49,887
210 210
196 196
196.00 196.00
$210.68 $210.68
$210.68 $210.68
$16,392 $16,197
($16,292) ($13,553)
$16,097 $14,866
$16,197 $17,510
$119,854 $136,146
$16,292 $13,553
$0 $0
$136,146 $149,699
8 June 3, 2025, Item #11

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.

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 City of Poway
2025/26 Engineer's Report-Landscape Maintenance District 87-1 9 June 3, 2025, Item #11
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 as follows:

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 ofthe 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.

5.3.2 GENERAL BENEFIT
In reviewing the location and extent of the specific landscaped areas and improvements to be funded by District assessments and the proximity and relationship to properties to be assessed, it is evident these improvements have been installed as part of the development of properties within the District or are improvements that would otherwise be shared by and/or required for development of those properties.

Although the District improvements are located on public streets or public areas that are typically visible and/or accessible to the general public, it is evident that the ongoing maintenance of these improvements City of Poway
2025/26 Engineer's Report-Landscape Maintenance District 87-1 10 June 3, 2025, Item #11
are only necessary for the appearance and advantage of the properties within the District that are directly associated with these improvements (particularly the level of maintenance and servicing) are not required nor associated with any properties outside the District. It is also evident that: (1) the maintenance of these improvements and the level of maintenance provided, has a direct and particular advantage (i.e., special benefit) only to those properties in close proximity to the improvements, including those developments and properties that are directly accessed from the streets where the improvements are located; and (2) such maintenance beyond that which is required to ensure the safety and protection of the general public and property in general, limits any indirect or incidental benefit that the public at large or properties outside the District receive from the improvements.

In the absence of a special funding district, these types of improvements would not have been installed by the City and the City's maintenance of these improvements would, for the most part, be limited to tree management services necessary to ensure public safety and protection of property, weed abatement, rodent control, and erosion control services for the various landscape areas that are provided elsewhere in the City.

This basic or baseline level of service would typically provide for periodic servicing of these areas on an as needed basis. This baseline level of service, which is provided elsewhere in the City, would provide for public safety and essential property protection to avoid negative impacts on adjacent roadways and vehicles traveling on those roadways and potential property damage. However, this baseline level of service results in a far less visually pleasing environment than is created with the enhanced levels of services associated with the regular landscape maintenance that can be provided through the District assessments.

On average, the cost to provide this baseline level of service for the District's streetscape landscape areas is estimated to be approximately $715 per acre (approximately $0.0170 per square foot) and approximately $428 per acre (approximately $0.0098 per square foot) for non-streetscape landscape areas, including a five percent (5%) cost factor for City overhead and administration. While the cost to provide this baseline level of service can increase each year by the average of the San Diego-Carlsbad Consumer Price Indexes, All Urban Consumers and Urban Wage Earners and Clerical Workers, this represents an average increase of 3.51% from prior year due to the increase in total expenditures.

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 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 new parcels within the District are scheduled to contribute in lieu assessments in Fiscal Year 2025/26.

City of Poway
2025/26 Engineer's Report-Landscape Maintenance District 87-1 11 June 3, 2025, Item #11

5.4 .3
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 .4

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
of
this
Engineer's
Report
.

The
assessment
methodology
utilized
is
as
described
above.

Based
on
this
methodology,
the
benefit
units,
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
assessments
for
the
residential
parcels
are
proposed
to
remain
at
the
Fiscal
Year
2020/21
assessment
rate
of
$210.68
per
benefit
unit.

5.5 Maximum
Assessment
Rate
The
approved
maximum
assessment
rates
for
the
District
were
established
and
have
remained
at
$210.68
per
benefit
unit
per
year
for
Rolling
Hills
Estates,
Valencia,
Kimball,
Aviano/Bothwell,
Rexford,
and
Dynasty
Development.

The
District
currently
has
no
approved
escalation
factor
for
increasing
the
maximum
assessment
rates.

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
87-1
12 June 3, 2025, Item #11
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_
' . -
:..
' ,; .... -
t.
·•
&5
Legend
LMD 87-1 lmr:ro.1r.mnnt:1
-LLD 19-1 Sh r€<J lr\
1 ,}.f ve·nen 9
-Gc...,Uur1rJ $t,;.ifl!<J lo·p,ov1:m1t.-r1t~
!_ML) LI l-1 parcnlr.
,-_·~~;City O.ouridary
l
City Of Poway: LMD No 87-1 Revised District Diagram
City of Poway
2025/26 Engineer's Report-Landscape Maintenance District 87-1 A June 3, 2025, Item #11
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 87-1 B June 3, 2025, Item #11
APN
317-830-05-01
317-830-05-02
317-830-05-03
317-830-05-04
317-830-05-05
317-830-05-06
317-830-05-07
317-830-05-08
317-830-05-09
317-830-05-10
317-830-05-11
317-830-05-12
317-830-05-13
317-830-05-14
317-830-05-15
317-830-05-16
317-830-05-17
317-830-05-18
317-830-05-19
317-830-05-20
317-830-06-01
317-830-06-02
317-830-06-03
317-830-06-04
317-830-06-05
317-830-06-06
317-830-06-07
317-830-06-08
317-830-06-09
317-830-06-10
317-830-06-11
317-830-06-12
317-830-06-13
317-830-06-14
317-830-07-01
317-830-07-02
317-830-07-03
317-830-07-04
317-830-07-05
317-830-07-06
317-830-07-07
317-830-07-08
Slight variances may occur due to rounding
Copyright© 2013 by NBS
23 of28
City of Poway
Landscape Maintenance District 87-1
2025/26 Assessment Roll
EBU Landuse

1.00 Residential

Page 1 of 5 ends

Grand Total
$210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
05/14/2025 01:32:47PM
June 3, 2025, Item #11
APN
317-830-07-09
317-830-07-10
317-830-07-11
317-830-07-12
317-830-07-13
317-830-07-14
317-830-07-15
317-830-07-16
317-830-08-01
317-830-08-02
317-830-08-03
317-830-08-04
317-830-08-05
317-830-08-06
317-830-08-07
317-830-08-08
317-830-08-09
317-830-08-10
320-020-38-00
320-020-39-00
320-020-42-00
320-020-44-00
3 20-020-45-00
3 20-020-46-00
320-020-48-00
320-200-01-00
320-200-02-00
320-200-03-00
320-200-04-00
320-200-05-00
320-200-06-00
320-200-07-00
320-200-08-00
320-200-09-00
320-200-10-00
320-200-11-00
320-200-12-00
320-200-13-00
320-200-14-00
320-200-15-00
320-200-16-00
320-200-17-00
Slight variances may occur due to rounding
Copyright© 2013 by NBS
24 of28
City of Poway
Landscape Maintenance District 87-1
2025/26 Assessment Roll
EBU Landuse

1.00 Residential

Page 2 of 5 ends

Grand Total
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
05/14/2025 01:32:47PM
June 3, 2025, Item #11
APN
320-200-18-00
320-200-19-00
320-200-20-00
320-200-21-00
320-200-22-00
320-200-23-00
320-200-24-00
320-200-25-00
320-200-26-00
320-200-27-00
320-200-28-00
320-200-29-00
320-200-30-00
320-200-31-00
320-200-32-00
320-200-33-00
320-200-34-00
320-200-35-00
320-200-36-00
320-200-37-00
320-200-38-00
320-200-39-00
320-200-40-00
320-200-41-00
320-200-42-00
320-201-01-00
320-201-02-00
320-201-03-00
320-201-04-00
320-201-05-00
320-201-06-00
320-201-07-00
320-201-08-00
320-201-09-00
320-201-10-00
320-201-11-00
320-201-12-00
320-201-13-00
320-201-14-00
320-201-15-00
320-201-16-00
320-201-17-00
Slight variances may occur due to rounding
Copyright© 2013 by NBS
25 of28
City of Poway
Landscape Maintenance District 87-1
2025/26 Assessment Roll
EBU Landuse

1.00 Residential

Page 3 of 5 ends

Grand Total
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
05/14/2025 01:32:47PM
June 3, 2025, Item #11
APN
320-201-18-00
320-201-19-00
320-201-20-00
320-201-21-00
320-201-22-00
320-210-01-00
320-210-02-00
320-210-03-00
320-210-04-00
320-210-05-00
320-210-06-00
320-210-07-00
320-210-08-00
320-210-09-00
320-210-10-00
320-210-11-00
320-210-12-00
320-210-13-00
320-210-14-00
320-210-15-00
320-210-16-00
320-210-17-00
320-210-18-00
320-210-19-00
320-210-20-00
320-211-01-00
320-211-02-00
320-211-03-00
320-211-04-00
320-211-05-00
320-211-06-00
320-211-07-00
320-211-08-00
320-211-09-00
320-211-10-00
320-211-11-00
320-211-12-00
320-211-13-00
320-211-14-00
320-211-15-00
320-211-16-00
320-211-17-00
Slight variances may occur due to rounding
Copyright© 2013 by NBS
26 of 28
City of Poway
Landscape Maintenance District 87-1
2025/26 Assessment Roll
EBU Landuse

1.00 Residential

Page 4 of 5 ends

Grand Total
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
210.68
05/14/2025 01:32:47PM
June 3, 2025, Item #11
APN
320-211-18-00
320-212-01-00
320-212-02-00
320-212-03-00
320-212-04-00
320-212-05-00
320-212-06-00
320-212-07-00
320-212-08-00
320-212-09-00
320-212-10-00
320-212-11-00
320-212-12-00
320-212-13-00
320-212-14-00
320-212-15-00
320-212-16-00
320-212-17-00
320-212-18-00
320-230-01-00
320-230-02-00
320-230-03-00
320-230-04-00
320-230-05-00
320-230-06-00
320-230-07-00
320-230-10-00
320-230-14-00
196 Accounts
Slight variances may occur due to rounding
Copyright© 2013 by NBS
27 of 28
City of Poway
Landscape Maintenance District 87-1
2025/26 Assessment Roll
EBU Landuse Grand Total

1.00 Residential 210.68

1.00 Residential 210.68
196.00 $41,293.28

Page 5 of 5 ends

June 3, 2025, Item #11
28 of 28
City of
San Diego
Scripps Poway Pky
I
Stowe Dr
City of Poway

ATTACHMENT C

Poway City CouncilJune 3, 2025

Poway City Council
June 3, 2025