Agenda packet, joint meeting — Yorba Linda City Council, January 17, 2023 (part 2 of 3)

pfml asset inanagement
Managed Account Fair Market Value & For the Month Ending October 3L,2022 Security Type/ Description
Dated Date/Coupon/ Maturity

CREDIT SUISSE NEW YORK CERT DEPOS
Dm æ | B p0zl 0.590o/o 03 I 17 12023

TORONTO DOMINION BANK NY CERT
DEPOSnrn rn/?r /2n?t q Rnîo/^ 1^l)71)6)c
cusIP
22552G3Q.
8911586K1
Par Broker
365.000.00 csFB
450,000.00 TD
Next Call
Date
Market
Price

98.37 100.00
Market
Value
359,041.01
449,992.62
Unreal G/L
On Cost
Unreal G/L
Amort Cost
(5.9s8.99)
(7.38)
EffectiveDuration
YTM
at Mkt

4.92 5.58
(s,9s8.99)
(7.38)

0.393.68
CeÉificate of DepositAsset-Backed Security
Secur¡ty Type SuFTotalGMALT 202G3 A3
DTD æ12912020 0.450o/o 0812112023NALT 2O2O-B A3DID 09 I 29 | 2020 0.430o/o L0 | t6 | 2A23BMWLT 2021-1 A3DTD 03/ 10/202 1 0.290o/o 0L | 25 I 2024 TLOT 2021-A A3
DÎ D 04 | 2U 2021 0.390o/o M | 22 | 2024
GMALT 2021-2 A3
Dr D 05 | 26 | 202t 0.340o/o 05 | 20 I 2024NAROT 2O2O-B A3DT D 06 | 30 | 2020 0.550o/o 07 I L5 I 2024 TAOT 2020{ A3
D'ÍD 07 | zil 2020 0.440o/o t0 I 1512024HAROT 2020-3 A3DTÐ 09 I 29 | 2020 0.37 0o/o l0 I 18 | 2024BMWOT 2O2()-A A3DTD 07 I 15 | 7020 0.4809/o L0 | 25 I 2024HART 2O2O-B A3 DTD 0il2212020 0.480Vo t21L612024
IIZOT 2020-8 A
DID 081t212020 0.470o/o 0212U2A25
CARMX 2020-3 A3
DID 0il2212020 0.6200/o O31L712025
815,000.00
6,774.99
33,263.0666,142.78
130,000.00
221,204.43
43,877.20
80,751.65
157,041.30

51.523.0285.910.13
232344.87
to6A82.25
809,033.63 (5,966.37) (5,966.37) 2.22 5.29
3625694C965480EA0305591R4C8
89238EACo380144AC965479C4D089237V485
43813K4C6
09661RAD3
44933FACo922908449
14315F4D9
wEus_F

MERRILL
MIZUHO

JPM-CHA
SOCGEN
MIZUHO
SMBC
BARCI.AY

JPM-CIIA

CITIGRP

RBCBARCTAY
99,82

99.73 98.8598.1998.4098.9198.1597.5898.4398.51

98.2798.17
6,762,53
33,180.29
65,383.42
127,6r'j8.26
217,661.71
43,400.07
79,257.92
153,236.11
50,715.3984,628.88
228,287.44
104,531.52
(11.81)(79.35)
Q57.26)
Q,336.37\G,508.60)
(47s.92',,
(t,487.52)ß,782.L2)
(803.74)
(L,26s.17)
(3,968.6s)
ft,932.49)
(12.28)(81.70)
(7s8.46)
(2,344.30\(3.525.2s)
Ø76.62)
(1,490.85)(3,794.01)
(80s.83)
Í,273.49)(3,992.58)6,94t.42\

0.060.100.29o.370.380.290.420.510.360.350.40o.42

0.680.69
''Z31.631.381.191.40t.621.281.19L.231.40
FFM Asset lVlanagement LLC Account 97480000 Page 33

Page 184 of 318 ends

pfmì asset inanagement
Managed Account Fair Market Value & Analytics For the Month Ending October 31,2022 .. \r . rr^r, .,ta t, lt¡:- '.rìji:.!;,"-¡ Security Type/ Description
Dated Date/Coupon/ Maturity CUSIP Par Broker
Next Call
Date
Market
Price
Market
Value
Unreal G/L
On Cost
Unreal G/L
Amort Cost
Effective
Durat¡on
YTM
at Mkt
Asset-Backed Security
GMALT 2021-3 A4
DTD 08/18/2021 0.500o/o 07 l2I/2025KCOT 2021-14 A3DlD 04IL41202t 0.6200/o AUß12025 CARMX 2020-4 A3
OtD L0l2tl2o20 0.500o/o 08/15/2025HART 2021-A Æ
DlD 04 | 28 I 202t 0.380o/o 09 | tS | 2025KCOT 2021-24 A3DlD 0il281202r 0.5600/o lUt7l2025 CARMX 2021-1 A3
DfD 0t | 27 12021 0.340o/o l2l 15 J2025
CARMX 2021-2 A3
Dm 0412L1202L 0.520o/o 021L712026
CARMX 2021-3 A3
DID 0T 28 | 2021 0.550o/o 06 | 15 | 2O26
HAROT 2022-2 A3Df D 08 I 24 | 2022 3.73ïo/o 07 120 I 2026 DCENT 2021-A1 A1DID 09 | 27 | 202L 0:,580o/o 09 I L5 I 2026 coMET 2021-A3 A3
DTD 11/30/2021 l.M0o/o I11L517026CARMX 2022-3 A3
DTD 07 I 20 | 2022 3.97 0o/o 04 I 15 | 2027
coPAR 2022-2 A3
DTÐ 08 | L0 | 2022 3,6@0/o 05 | t7 | 2027DCENT 2022-42 A DID 05 | 26 | 2022 3.320o/o 05 I t7 I 2O27
AMXCA 2022-2 A
tra t)À. t)(r'r') 3.390o/o tìç / -il)^)'7
36262XAD6
s0117TAC5
14316H4C6
44933tAC7
50117XAE2
14316N4C3143140AC8143l7DAC4
43815PAC3
2s4683CP8
14041NFY2l4318MAD11¿1043G4D6
254683CS202s8ÐJT8
55,000.00
110,000.00
L35,7L7.42105,000.00100,000.00
62,466.25
160,000.00
305,000.00
75,000.00
270,000.00
355,000.00
330,000.00
150,000.00170,000.00
365,000.00

JPM-CHA

JPM-CHA
RBC

BARCLAYMITSU

MITSUMERRILLRBCMITSUCITIGRPBARCTAYRBC
JPM_CHA

RBCBARCLAY

94.08 94.66

96.66 96.23
92,4896.1695.69

94.5997.26

92.2892,63

96.90 96.7996.30

95.89 51,743.98
L04,721.09
131,184.93
101,038.46
92,483.06
60,068.38
153,103.81288,487.79
72,947.92
249,t47,63
328,828.s8319,7s6.60
145,192.34t63,7LL.29
350,015.76
(3,2s4.03)
(s,8s6.40)(4,so2.62',t(3,9s0.49)Q,5t3.t7\
(2.38s.s3)(6,861.71)
(t6,462.04)
(2,047.6L\
Q0,794.s6)(26,t22,s0\
(10,235.61)
(4,796.92\(6,274.89)
(14,903.s0)
ß,254.64)
ß,864.44)(4,s1s.20)(3,954.30)(7,574,27)
(2,389.98)(6,872.64\
(16,475.01)
Q,M7.83\
(20,807.31)(26,131.s8)(10,236.08)
(4,797.43\(6,276.r0\
(14,910.65)

1.281.14

0.62 0.74

7.37 0.740.73

1.03t.921.831.98

2.t22.20

2.382.38

2.762.6t

1.73 1.73

3.15 1.60L.87

2.10 4.53

2.682.98

4.744.444.22

4.39 DTD
Secur¡ty Type Sub-Total 1,27 2.65
FFM Asset Management LLC
3r9631459.35 3,806,524.56 (156,370.7A) (156Þ44.29)
Account 97480000 Page 34

Page 185 of 318 ends

fnl asset
Seorrity Type/ Description
Dated Date/Coupon/Maturity
Managed Account Sub-Totâl
Securities Sub-Total
Accrued Interest
Total Investments
Managed Account Fair Market Value & lytics For the Month Ending October 3L,2022 cusIP
Next Call
Date
Market
Price
Market
Value
Unreal G/L
On Cost
Unreal G/L
Amort Cost
Effective
Duration
YTM
Par Broker at Mkt
48,578,467.85
#8,578,467.85
,62 (3,563,466.01) (3,3æÉ13.16)
.62 ($3,563,466.0r) (S3,363,313.16)

2.32 4.SL

2.32 4,5Lo/o
PFM åsret fUlanagernent LLC Account 97480000 Page 35

Page 186 of 318 ends

pfml asset inanagement
Managed Account Security Transactions & Interest For the Month Ending October 3r.,2022 Transaction TypeTrade Settle
Principal
Proceeds
Accrued Realized G/L
Cost
Realized G/L
Amort Cost
Sale
Method
r012612210127122
L0128122L0l3u22
HOME DEPOT INC (CALI.ABLE)

CORPORATE NOTE
DID 03 | 28 I 2022 2.87 5o/o 04 | 15 | 2027

TORONTO DOMINION BANK NY CERT
DEPOSDf D l0 I 3 I I 2022 5.6000/o I0 I 27 I 2O25
CUSIP
437076CN0
8911586K1
Par
120.000.00 (110,311.20)
4s0.000.00 (450,000.00)
57O,00O.O0 (560,311.20)
Total
(124.s8) (110.435.78)
0,00 (450,000.00)
Transaction Type Sub-Totâ¡ (124.s8) (560,435.78)

BUYINTEREST
r0lou22L0l0u22
Lol0u22
t0l0rl22LÙl0u22
t0l0Ll22
t0l2sl22L0lzsl22L0l2sl22
L0102122
46625HRV4
3137BTU2s3137BKRJ13137B4GXB0605lGKM0
MONEYOO()2
6T772B,þ,AL023L35Ce4
313OAJHU6
14315F4D9
65480E4D3
t4317DAC4
230,000.00
209,294.83
470,000.00
9,374.48
2s0,000.00

0.00 125,000.00
235,000.00
840,000.00
116,907.06
54,058.82
305,000.00
3,392,50
534.05
1,303.86

23.56 4,465.00
494.33
456.88
3,525.00
2,100.00

60.40 t9.37
739.79
3,392.50
s34.05
1,303.86

23.56 4,465.00
494.33
456.88
3,525.002,100.00

60.40 19.37
139.79
t0103122L0105122
t0103122t0l0sl22
JPMORGAN CHASE & CO CORP NOTÊS
DTÐ 07 | 2l | 20 16 2.950o/o L0 | 0 t | 2026FHMS K724 A2Dm 0U0Ll20t7 3.0620/o LUoLl2023FHMS KO47 A2 Dm 07ßol20LS 3.329o/o 0510112025
FHLMC SERIES KO32 A1DTD 09/01/2013 3.0|60/o 0210L12023BANK OF AMERICA CORP NOTES (cALr-ABLE)
DTD 03 I 22 | 2022 3,384o/o 04 | 02 | 2026

0.000.000.000.000.00

0.000.000.000.00

0.000.000.00
L0l13l22
L0l14l22
r0lt5l22r0lLsl22t0lt5l22
L0lL3l22L0lt4l22
t0lLsl22
tol1sl22
r0lrsl22
PFM Asset ft,anagement I.J.C Account 97480000 Page 36

Page 187 of 318 ends

pfmì asset inanagement
Managed Account Security Transactions & nterest For the Month Ending October 3L,2022

TNTEREST
Transact¡on TypeTrade Settle CUSIP
65479C4D0
14318MAD1
44933F4C0
143140AC8437076C 8
02s82JJT8
437076CM2
89237/AB550117T4C5

1.1043GAD614316NAC314041NFY2
50117)nE2254683CP8
44933t4C7
254683CS2
Par
s0,422.83
330,000.00
96,556.72
160,000.00
120,000.00365,000.00
35,000.00
89,375.92
110,000.00
150,000.00
66,246.48
355,000.00
100,000.00
270,000.00
105,000,00
170,000.00
Principal
Proceeds
Realized G/L
Cost
Realized G/L
Amort Cost
Sale
Method
L0tL5l22L0l15l22L0l15l22
t0lL5l22r0lt5l22
t0l15l22
t0lrsl22Lolrsl22t0ltsl22
L0ltsl22

0.00 0.000.000.000.00

23.11 7,09t.75

38.6269.33
1,500.00
1,031.13
5L7,L3
32,n
s6.83
457.50

18.77 307.67

46.67 130.50

33.25 470.33

23.11 1,091.75

38.6269.33
1,500.00
1,031.13
517.13

32.77 56.83
457.50
L8.77
307.67

46.67 130.s0

33.25 470.33
r0ltsl22t0lt5l22
t0lL5l22
L0lL5l22t0ltsl22L0l15l22
r0l15l22t0lrsl22
t0lL5l22
r0lL5l22
r0ltsl22
r0lLsl22
L0lL5l22
tgl|sl22L0lt5l22
t0lLsl22LOlLsl22r0lt5l22L0lrsl22
L0l\sl22
L0lLsl22r0lLsl22
MROT 2O2O-B A3DTD 06/30/2020 0.550o/o 07 | t512024
CARMX 2022-3 A3
DTD 0il2012022 3.970o/o 0411512027HART 2O2O-B A3DID 07 l22l 2020 0.480o/o I2l 16 I 2024 CARMX 2021-2 A3
Dm M?rl202l O.520o/o 0211il2026HOME DEPOT INC CORP NOTES(cALr-ABLE) DtD 03 I 30 | 2020 2.500o/o 0 4 | L5 | 2027
AMXCA 2022-2 A
Dm 05/2412022 3,390o/o 05lLï2027HOME DEPOT INC (CALI.ABLE)

CORPORATE NOTE
DTD 03 | 28 I 2022 2.7 00o/o 04 | 15 | 2025
TAOT 2020-C A3
Dm 07127J2020 0.44oo/o 1011512024KCOT 2021-rA A3ùTD 04 I L4 | 202t 0.6200/o 08 | t5 | 2025 coPAR 2022-2 A3
DtD 08 / 70 I 2022 3.660vo 05 I I7 2027
CARMX 2021-1 A3
D'lD 0t/27 I 202L 0,340o/o l2l 15 12025
coMET 2021-A3 A3
Dm Ltl30l202l L.MÙo/o LUl5l2026KCOT 2021-2A A3vrD 0T281202L 0.5600/o tV17l2o25 DCENT 2021-41 A1DTD 09 | 27 12021 0,580o/o 09 | 15 | 2026HART 2021.4 A3DID 041281202L 0.380o/o 09/15/2025DCENT 2022-A2 A DTD 0s / 26 I 2022 3.320o/o o5 | 17 | 2027

0.00 0.000.000.000.000.00

0.000.000.000.00

0.00 PFM AssËt ülanagemÊnt I.LC Account 97480000 Page 37

Page 188 of 318 ends

pfmì asset inanagement
Managed Account Security Transactions & Interest For the Month Ending October 3L,2022 Transaction Type Principal
Proceeds
Accrued
Interest
Realized G/L
Cost
Realized G/L
Amort Cost
Sale
Method

TNTEREST
L0lL5l22
!01t8122
t0lL8l22101L9122
t0t2012210120122t0120122
10120122r0120122
t0l2u22
Settle
r0lt5l22
t0ltgl22r0lL8l22r0lL9l22L0120122
t0120122t0120122t0120122t0120122t0l2ll22
cusIP
14316HAC6
43813KAC643815P4C3
06051GFX23801¡l4AC989238EACo922908A49
362569AC936262XAD6
6t747,ftG6
313sG03U506406R411
0s591RAC806406R8C009661R4D3
t44]07.69L77.459.t2
75,000.00
160,000.00
244,998.07
130,000.00
268,380.95
24,372.28s5,000.00
120,000.00
965,000.00
135,000.00
77,800,97
235,000.00
58,082.44

60.29 52.87
233.13
2,800.00
69,4242.25
105.12

9.L4
22,92
698,40
æ.29

52.87 233.13
2,800.00

69.4242.25
105.12

9.14 22.92
698.40
Total
3,015.63
r,4r7.50

18.80 3,914.38

23.23 Par
t0125122 L0l2sl22
CARMX 2020-4 A3
ùrD L0 I 2L | 2020 0.500o/o 08/ 1 5/2025
HAROT 2020-3 A3
DTD 09 | 29 | 2020 0,37 0o/o I0 I L8 I 2024
HAROT 2022-243Dm 0812412022 3.73oo/o o7ßA12026
BANK OF AIVIERICA CORP NOTESDTD 04 | 19 | 20 16 3.500o/o 04 | L9 / 2026 GMALT 2021-2 A3
DTD 0S I 26 I 202L o.340o/o 0S | 2o | 2o24
TLOT 2021-A A3
ÐTD 0412U2021 0.390o/o 0412212024
\zor 202tr8 A
DTD 08 | 12 | 2020 0.47 0o/o 02120 I 2025
GMALT 2O2O-3 A3
DID 09 I 29 | 2020 0.450o/o 08 | 2t | 2023
GMALT 2021-3 A4
DTD 08/18/2021 0.500o/o o7 12t12025

MORGAN STANLEY CORP NOTES
(CALLABLE)
Dm ßlL9l202L l.1640/o t012U2025FANNTE MAE NOTESDm A412412020 0.6250/o 0412212025 BANK OF NY MELLON CORPDTD I0 | 24 | 20 t9 2. LÛQo/o I0 | 24 I 2024 BMWLT 2021-1 A3
DTD 03 | I0 | 2021 0.290o/o 0I 125 | 2024BANK OF NY MELLON CORP (CATIABLE) CORP N
DID 04 | 26 I 2022 3.350o/o 04 | 25 J 2025BMWOT 2O2O-AA3Dm Oil 15 I 2020 0.480o/o t0 I 25 | 2024

0.00 0.00

0.00 0.000.000.00

0.000.000.00

0.00 t0122122r0124122r0125122L0lzsl22
10122122Lglul22L0l2sl22
t0l2sl22

0.00 0.00

0.00 0.000.00
3,015.63
1,4t7.50

18.80 3,914.38

23.23 PFM Ásset fi4anagernent I..LC Account 97480000 Page 38

Page 189 of 318 ends

pfmì asset inanagement
Managed Account Security Transactions & For the Month Ending October 3t,2022 Transact¡on Type Trade Settle
t0126122 t0126122ßßa122 t0t30122
Par
Principal
Proceeds Total
237.s0
950.60
1,387.50
312.50
5,156.25
42,867.53
Realized G/L
Cost
Realized G/L
AmoÊ Cost
Sale
Method
t0l3tl22
t0l3u22L0131,122
t0l3u22L0l3Ll22
r0l3u22

BANK OF NY MELLON CORP NOTES
(CALLABLE)
DTD 04 | 26 | 2021 0.500o/o O4 | 26 | 2O24

CXTIGROUP INC CORP NOTES
(cALr-ABLE)
DTD 10/30/2020 0.7760/o L013012024

US TREASURY N/B NOTES
Dr D 0,4 | 30 | 202t 0.750o/o 04 | 30 | 2026

US TREASURY N/B NOTES
DID Ml3olâo2o o.50oo/o 0413012027US TREASURY N/B NOTES
D'rD 04 | 30 I 2022 2,7 50o/o 04 ß0 | 2027
CUSIP
06406R4S6
172967MT5
91282C8W0
9128282N3
91282CEN7
95,000.00
24s,000.00370,000.00
125,000.00
375,000.00
9,492,038.66

0.00 0.00
, 0.00

0.00 0.00
o.oo
237.50
950.60
1,387.50
312.50
5,1s6.25
Transaction Type Sub-Total .53
fNTEREST

PAYDOWNS
r0l0u22L0l0Ll22L0lLsl22L0lL5l22L0lLsl22t0lL5l22t0lLsl22t0ltsl22 L0lLsl22
L0l2sl22
L0l2sl22
LolLsl22
L0lL5l22
L0lLsl22t0lrsl22L0lt5l22r0lL5l22L0tLsl22
31378,1GX831378TU2565,1808AD3
14316H4C614315F4D9
65479CAD0.t4933F4C0
89237VA85
14316NAC3
3,367.68
793.73
20,795.76
8,990.27
10,424.8t
6,545.63
10,646.59
8,624.273,780.23
3,367.68
293.13
20,795.76
8,990.27
LO,424.8L
6,545.63
10,646.59
8,624.273,780.23
3,367.68
293.13

20.795.76
8,990.27
10,424.81
6,545.63
10,646.59
8,624.273,780.23
(8,03)
(l9.80)

2.L4

1.98L,79

0.18 1.99

0.660.75
FHLMC SERIES KO32 A1DTD 09/01/2013 3.0L6o/o Q?/0U2023FHMS K/24 A2 DTD 0U0Ll20l7 3.062Vo LLl0Ll2023
NALT 2O2GB ÆDID 09 | 29 | 2020 0.430e/o L0 | L6 | 2023
CARMX 202(H A3
DrD L0l2ll2o20 0.s00% o8/15/202s
CARMX 202G3 À3
DID 07122J2020 0.620o/a 031Lil2025NAROT 2O2O-B A3DTD 06/30/2020 0.550o/o 07 11512024HART 202tr8 A3ÐrD 0il242020 0.480vo L21L612024 TAOT 2O2(}C A3
ÐrD 0712712020 0.440Vo L01t512024
CARMX 2021-l A3
DID 0U27 12021 0.340o/o L2l LSI 2025

0.000.000.000.00

0.00 0.000.000.000.00

0.000.000.000.000.000.000.000.000.00
PFM A¡set fvlanagement LLC Account 97480000 Page 39

Page 190 of 318 ends

pfmì asset inanagement
Managed Account Security Transactions & Interest For the Month Ending October 3'-,2022 Transaction TypeTrade Settle
Principal
Proceeds
Accrued
Interest
Realized G/L
Cost
Realized G/L
Amort Cost
Sale
Method

PAYDOWNS
101t8122L0l20l22r0120122
t0120122
L0l2sl22L0125122
L0lL8l22
L0120122
L0120122
10120122
L0l2sl22
L0tzsl22
43813KAC6
380144AC99229084A9
3625694C9
09661RAD305591R4C8
74,4t7.82
23,793.64
36,076.08
77,597.29
6,559.42
11,658.19
t4,477.82
23,793.M
36,076.08
t7,597.29
6,559.42
11,658.19
Total
14,4L7.82
23,793.6436,076.08
17j97.29
6,5s9.42
11,658.19
183,570,81

2.L23.74

7.58 1.69

0.500.37
(2.34)
Par
HAROT 2020-3 A3Df D 09 | 29 | 2020 0,37 Oo/o I0 | tB | 2024 GMALT 2021-2 A3
DID 0s 126 | 202t 0.3 40o/o 05 | 20 | 2024
\rzoT 2020-8 A
Df D 08 | t2 | 2020 0.47 0o/o 021 20 J 2025
GMALT 202G3 A3
DrD 09 | 29 I 2020 0,450o/o 08 | 21 | 2023BMWOT 2O2O-A A3DfD 0U1512020 0.480o/o 1012512024BMWLT 2021-1 A3 O.290o/o 07t2st2024

0.000.000.00

0.000.00

0.00 0.00

0.000.00

0.000.000.00

0.00 DTD
Transact¡on Type Sub-Total 183,570.81 183,570.81 0.00
SELL
L0127122
r0127122
t0t3!22L0t3U22
912B2CAW191282C4W1
220,000.00230,000.00
210,s98.44220,t71.09
252,58264,06
210,8s1.02220,435,Ls
t8.086.72)(9,460.s5)
ß,71s.24',t$,æe,76',,

US TREASURY NOTES
Dm IL/J5|2020 0'250o/o ltlt5l2023

US TREASURY NOTES
11nqt)î)7

RFOFIFO
DTD 0.250o/o
Transact¡on Type Sub-Total
Managed Account Sub-Total
Total Security Transactions
450,000.00 430,769.53
54,O29.14
516.64
43,259.59
$54029.14 $43,2s9.59
43L,286.L7 (L7,547.27) (18,364.00)
97,288.73 (17,549.61) (18,364.00)
$97,288.73 ($17,549,61) ($18,364.00)
PFM Asset lVlanagement LLC Account 97480000 Page 40

Page 191 of 318 ends

PUBLIC WORKS DEPARTMENT
DATE: JANUARY 17, 2023
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: JAMIE LAI, P.E. PUBLIC WORKS DIRECTOR / CITY ENGINEER PREPARED BY: REGINA HU, P.E. PRINCIPAL CIVIL ENGINEER
SUBJECT: REDUCTION OF ADDITIONAL SURETY BONDS, TRACT 18020 – LOMA

VISTA/ MELIA HOMES, LENNAR

RECOMMENDATION
It is recommended that the City Council authorize the City Clerk to:

1. Release 75 percent of the On-site Private Improvement bond.

BACKGROUND
Developer: Lennar Homes
Number of Parcels: 192 units (two and three-story townhome/condominium) Acreage: 12.45 Acres
Zoning: PD (Planned Development)
Location: Southeast corner of Bastanchury Road and Plumosa Drive Tract 18020 is a three-lot multi-family residential condominium community that is located on the southeast corner of Bastanchury Road and Plumosa Drive, APN 343-111-01 & 343-111- 02 (see Attachment 1 – Vicinity Map). The developer posted bonds as required by Municipal Code Section 17.16.040 and the Subdivision Map Act to ensure completion of improvements. The bonds provide the security instrument to ensure the improvements meet the satisfaction of the City Engineer and conform with the Subdivision Improvement Agreement, the accepted plans, and Project Resolution No. 5174.

Page 192 of 318 ends

R E D U C T I O N O F A D D I T I O N A L S U R E T Y B O N D S , T R A C T 18020 –

L O M A V I S T A / M E L I A H O M E S , L E N N A R
P a g e | 2

DISCUSSION
Public Works performed final inspections and has determined that the on-site work has been completed in accordance with the accepted plans and conditions of approval. Table 1 below summarizes the requested release amount of the sureties.

Table 1: Surety Release Summary
Bond NO. Surety Amount Release Amount
Onsite Private Improvement 024072932 $1,952,000 $1,464,000 Table 2 below summarizes remaining sureties on Tract 18020. Although construction work was complete, Lennar Homes was coordinating with Yorba Linda Water District (YLWD) to obtain two Declaration of Restrictive Covenants. Two condenser units are located within the District’s fire hydrant easements. Despite continuing efforts by developer (Lennar Homes) to coordinate the Restrictive Covenants between YLWD and the Home Owner’s Association (HOA), there is pending litigation between the HOA and developer. Lennar Homes has offered to relocate YLWD fire hydrant facilities, but the offer has not been accepted by YLWD at this time. The District believes the Restrictive Covenant with the HOA is the easiest, most cost-effective route to resolve the issue. The City is withholding the following surety bonds until resolution and approval of said Restrictive Covenants or fire hydrant relocations occur. The remaining surety bond amounts sufficiently cover costs (i.e. preparation and execution of the Restrictive Covenants, fire hydrant design and relocation, pavement and site restoration) to resolve the disputed matter between the HOA and Lennar.

Table 2: Remaining Surety Summary
Bond NO. Surety Amount Remaining Amount
Onsite Private Improvement 024072932 $1,952,000 $488,000 Water Improvements 30013985 $68,404 $68,404
Sewer Improvements 30013986 $43,925 $43,925

FISCAL IMPACT
There is no direct fiscal impact from releasing the developer-provided sureties as listed above.

ALTERNATIVES
Do not release the project sureties. This alternative is not recommended as the majority of

Page 193 of 318 ends

R E D U C T I O N O F A D D I T I O N A L S U R E T Y B O N D S , T R A C T 18020 –

L O M A V I S T A / M E L I A H O M E S , L E N N A R
P a g e | 3
work performed was found to be in substantial compliance with the terms of the subdivision improvement agreement, conditions of approval, and the accepted improvement plans.

ATTACHMENTS

1. Attachment 1 – Vicinity Map

Page 194 of 318 ends

City of Yorba Linda
Public Works
11/2/2021
ATTACHMENT 1
Vicinity Map
Source: City of Yorba Linda, 2021 Vicinity Sites Page 195 of 318

PUBLIC WORKS DEPARTMENT
DATE: JANUARY 17, 2023
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: JAMIE LAI, P.E. PUBLIC WORKS DIRECTOR / CITY ENGINEER PREPARED BY: REGINA HU, P.E. PRINCIPAL CIVIL ENGINEER
SUBJECT: EXECUTION OF OPERATIONS AND MAINTENANCE AGREEMENT FOR

THE CHURCH OF JESUS CHRIST OF LATTER-DAY SAINTS TEMPLE
(APN #334-212-04)

RECOMMENDATION
It is recommended that City Council approve and execute the Water Quality Management Plan and Stormwater Best Management Practice (BMP) Maintenance and Right of Way Agreement for the proposed Church of Jesus Christ of Latter-Day Saints Temple (APN #334- 212-04).

BACKGROUND
The proposed Yorba Linda California Temple will be a religious assembly facility owned and operated by The Church of Jesus Christ of Latter-day Saints (LDS). The new 29,896 square foot Temple will replace the Church’s previous meetinghouse located on the southwest corner of Bastanchury Road and Osmond Street in Yorba Linda, addressed as 17130 Bastanchury Road, APN No. 334-212-04.

On July 27, 1983, the Planning Commission approved the initial development of the LDS Church under Conditional Use Permit 83-25. The site planning and architectural review was approved on November 28, 1984, under Design Review 84-26.

On May 11, 2022, the Planning Commission approved the redevelopment and expansion of the LDS Temple under Conditional Use Permit 2021-17 and Design Review 2021-46.

The project and the Traffic Impact Analysis (TIA) were presented to the Traffic Commission on April 28, 2022 for their input and recommendations to address potential traffic, circulation, and parking impacts. These recommendations were brought forward and incorporated into the current design plans.

Page 196 of 318 ends

EXECUTION OF OPERATIONS AND MAINTENANCE AGREEMENT FOR THE CHURCH OF JESUS CHRIST OF LATTER-DAY SAINTS TEMPLE (APN #334-212-04) P a g e | 2
Public Works staff approved an Off-site Improvement Plan (SI22-001) to provide new power service to the LDS Temple on November 16, 2022. The Grading Permit (GP22-005) was issued on January 5, 2023.

DISCUSSION
To redevelop the previous 15,000 square foot meetinghouse into a 29,896 square foot “Temple” necessitates the addition of on-site water quality features in accordance with current statewide Municipal Stormwater permit requirements. Half of the existing site consists of a pervious, grass baseball recreational field that will now be converted into an impervious asphalt concrete parking lot. To mitigate storm water runoff, LDS is proposing to construct underground continuous deflection separation (CDS) pretreatment units, large stormwater cisterns, Filterra biofiltration units, mechanical skid units, and pump. Generally, the redeveloped site will capture the storm water runoff and reuse it for on-site irrigation purposes through environmental-friendly methods.

Each of the proprietary water quality products noted above requires proper operations and long-term maintenance. As such, the City developed the attached Operations and Maintenance Agreement (Attachment 2) for execution between the applicant (LDS Temple) and City of Yorba Linda. The owner and applicant will be responsible for installation, implementation, and maintenance of all facilities on private property and residual drainage into City’s storm drain system. City staff will inspect the water quality Best Management Practices (BMP) to ensure they are properly functioning prior to closing out the permits.

FISCAL IMPACT
There is no fiscal impact from executing the subject Agreement. The Owner is responsible for all operation and maintenance costs for on-site BMPs and stormwater quality features.

Per the Agreement, in the event the Owner fails to maintain the BMPs, the City has the right to enter onto private property to maintain the BMPs and will be reimbursed by the Owner for any costs required to perform necessary maintenance.

ALTERNATIVES
Do not approve the subject Agreement. This alternative is not recommended as the Stormwater Quality structures will be constructed as part of the project with no commitment and agreement in place for future maintenance. The City may be requested to maintain without fair compensation in the event of emergencies.

ATTACHMENTS
Attachment 1 – Vicinity Map
Attachment 2 – Water Quality Management Plan and Stormwater BMP Maintenance and Right of Way Agreement
Attachment 3 – Certificate of Liability Insurance

Page 197 of 318 ends

City of Yorba Linda
Public Works
1/17/2023
ATTACHMENT 1
Vicinity Map
Source: City of Yorba Linda, 2023 Vicinity Sites Page 198 of 318

CITY OF YORBA LINDA
Attn: City Clerk
4845 Casa Loma Avenue, P.O. Box 870L4
Yorba Linda, CA 92885

TVATER QUALITY MANAGEMENT PLAN AND STORMWATER BMP

MAINTENANCE AND RIGHT OF ENTRY AGREEMENT

THIS WATER QUALITY MANAGEMENT PLAN AND STORMWATER
BMP MAINTENANCE AI\D RIGHT OF ENTRY AGREEMENT ("Agreement") is made and entered into in the City of Yorba Linda, California, this _day of _ _,
2023 by and between The Church of Jesus Christ of Latter-da)¡ Saints. a Utah corporation sole, hereinafter referred to as "Olner" and the City of Yorba Linda ("City"), a municipal corporation. This Agreement applies to property located at 17130 Bastanchury Road. Yorba Linda. California, APN No. 334-212-04 in the County of Orange, State of California. The Agreement is subject to the following recitals:

RECITALS
\ryHEREAS, the Owner owns real property ("Property") in the City of Yorba Linda, County of Orange, State of Califomia, more specifically described in Exhibit "4" and depicted in Exhibit"B", each of which exhibits is attached hereto and incorporated herein by this reference;
WHEREAS, at the time of initial approval of Owner's development project known as the Yorba Linda California Temole on the Property, the City required the project to employ Best Management Practices, hereinafter referred to as "BMPs,o' to minimize pollutants in urban runoff;
\ryHEREAS, the Owner has chosen to install and/or implement BMPs as described in the Water Quality Management Plan, on file with the City, hereinafter referred to as "'WQMP", to minimize pollutants in urban runoff and to minimize other adverse impacts of urban runoff;
WHEREAS, the WQMP has been certified by the Owner and reviewed and approved by the City;
WHEREAS, the BMPs, with installation andlor implementation on private property and draining only private property, are part of a private facility with all maintenance or replacement, therefore, the sole responsibility of the Owner in accordance with the terms of this Agreement;

Page 199 of 318 ends

WHEREAS, the Owner is aware that periodic and continuous maintenance, including, but not necessarily limited to, filter material replacement and sediment removal, is required to assure peak perfonnance of all BMPs in the WQMP and that, furthermore, such maintenance activity will require compliance with all Local, State, or Federal laws and regulations, including those pertaining to confined space and waste disposal methods, in effect at the time such maintenance occurs; NOTV, THEREFORE, it is mutually stipulated and agreed as follows:

Responsibility for Operation and Maintenance of BMPs: Owner shall diligently maintain all BMPs in a manner assuring peak performance at all times. All reasonable precautions shall be exercised by Owner and Owner's representative or contractor in the removal and extraction of any material(s) from the BMPs and the ultimate disposal of the material(s) in a manner consistent with all relevant laws and regulations in effect at the time. As may be requested from time to time by the City, the Owner shall provide the City with documentation identifying the material(s) removed, the quantity, and disposal destination.

2. Right of Access: Owner hereby provides the City or City's designee complete access, of any duration, to the BMPs and their immediate vicinity at any time, upon reasonable notice, or in the event of emergency, as determined by City's Director of Public Works ("Director"), no advance notice, for the purpose of inspection, sampling, testing of the BMPs, and in case of emergency, to undertake, in the City's sole discretion, necessary repairs or other preventative measures at Owner's expense as provided in Paragraph 3 below. City shall make every effort at all times to minimize or avoid interference with Owner's use of the Property.

City Maintenance at Owner's Expense: ln the event Owner, or its successors or assigns, fails to accomplish the necessary maintenance contemplated by this Agreement, within five (5) days of being given written notice by the City, the City is hereby authorized to cause any maintenance necessary to be done and charge the entire cost and expense to the Owner or Owner's successors or assigns, including administrative costs, attorneys fees and interest thereon at the maximum rate authorized by the Civil Code from the date of the notice of expense until paid in full.

The City, at its sole election, may make these costs to be a lien upon the property that may be collected at the same time and in the same manner as ordinary municipal taxes as provided in Government Code section 38773.5. Nothing in this section or this Agreement creates an obligation by the City to maintain or repair any BMP, nor does this section prohibit the City from pursuing other legal recourse against Owner.

Recordins: This Agreement shall be recorded in the Office of the Recorder of Orange County, California, at the expense of the Owner and I
J

4. a

Page 200 of 318 ends

5 6.
7 shall constitute notice to all successors and assigns of the title to said Property of the obligation herein set forth, and also a lien in such amount as will fully reimburse the City, including interest as herein above set forth, subject to foreclosure in event of default in payment.

Attorne)¡'s Fees: In event of legal action occasioned by any default or action of the Owner, or its successors or assigns, the Owner and its successors or assigns agree(s) to pay all costs incurred by the City in successfully enforcing the terms of this Agreement, including reasonable attorney's fees and costs, and that the same shall become apart of the lien against said Property.

Covenant: It is the intent of the parties hereto that burdens and benefits herein undertaken shall constinrte covenants that run with said Property and constitute a lien there against.

Binding on Successors: The obligations herein undertaken shall be binding upon the heirs, successors, executors, administrators and assigns of the parties hereto. The term "Owner" shall include not only the present Owner, but also its heirs, successors, executors, administrators, and assigns. Owner shall notiS any successor to title of all or part of the Property about the existence of this Agreement. Owner shall provide such notice prior to such successor obtaining an interest in all or part of the Property. Owner shall provide a copy of such notice to the City at the same time such notice is provided to the successor.

Indemnitv and Insurance: The Owner, its heirs, successors, executors, administrators and assigns agree to defend, indemnifu and holds harmless the City, its officials, employees and its authorized agents from any and all damages, accidents, casualties, occurrences or claims which might arise or be asserted against the City and which are in any way connected with the conskuction, operation, presence, existence, or maintenance of the BMP by the Owner. The Owner shall maintain liability insurance specifically covering the BMPs in accordance with the following:
(a) Insured. The Church of Jesus Christ of Latter-day Saints. 50 East North Temple St., l0th Floor, Salt Lake City, UT 84150- 0010
(b) Insurers. Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and authorizedto do business in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law. (Check http://www.ambest.com/
Ratings & Analysis.)
8 -3-

Page 201 of 318 ends

9 (c) Expiration Dates.
(d) Commercial General Liability. Commercial General Liability Insurance which affords coverage at least as broad as Insurance Services Office "occurrence" form CG 0001, with minimum limits of at least $2,000,000 per occuffence, and anaggregate that shall be two times the per occurrence limit ($4,000,000.) Defense costs shall be paid in addition to the limits.

The policy or policies of insurance required for Commercial General Liability shall be endorsed to provide the following:
(i) Additional Insured Endorsement: The City, its officials, officers, employees, agents, and volunteers shall be
additional insureds with regard to liability and defense of suits or claims arising out of the performance of this
Agreement.
(ii) Primary and Non-Contributory Insurance Endorsement:

General Liability insurance coverage shall be primary.

Policies shall contain or be endorsed to contain such
provisions.
(e) Certificate Holder. City of Yorba Linda, 4845 Casa Loma Avenue, Yorba Linda, CA 92885-8714.

Time of the Essence: Time is of the essence in the performance of this Agreement.

Notice: Any notice to a party required or called for in this Agreernent shall be served in person, or by deposit in the U.S. Mail, first class postage prepaid, to the address set forth below. Notice(s) shall be deemed effective upon receipt, or seventy-two (72) hours after deposit in the U.S. Mail, whichever is earlier. A party may change a notice address only by providing written notice thereof to the other party.

IF TO OWNER:

Michael J Thomson, Director
Special Proj ects Department
50 East North Temple St., lOth Floor
Salt Lake City, UT 84150-0010
(801) 240-4238
thomsonmj @churchofi esuschrist.org

10. IF TO CITY:
-4- Page 202 of 318
IN IYITNESS TIIEREOF, the parties hereto have affixed their signatures as of the date first written above.

CITY O}VNER:

Mayor
t,
APPROVED AS TO FORM:

City Attorney
ATTEST:

City Clerk Date
NOTARIES ON F'OLLO}YING PAGE
-5- Page 203 of 318
A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California )
county of- )
On before me,
(insøt name and title of the officer)
);:îå:ii:åi:î$yoixT,"ff å*r"",",,"r*""*",**"w'
subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/herltheir authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certiff under PENALTY OF PERruRY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and ofEcial seal
(Seal)
A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of Galifrçi* U/"/-
County of *q
On ùzoøo/r- 5)ôe> ,before l-ou G,rt rn-
)
)
ñê,
(insert name and title ofthe officer)
Notary Public, personally appeared
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/trer/their authorized capacity(ies), and that by his/trer/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certiff under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.
.5lArE
[Type here]
()/"

Page 204 of 318 ends

EXHIBIT A
(LEGAL DESCRIPTION)

LEGAL DESCRIPTION
(LAWYERS TTTLE COMPANY, PRELTMINARY REPORT ORDER NO. 619672484 DATED JUNE 4,2021 AT 7:30 A.M)
ALL THAT CERTAIN REAL PROPERTY SIÏUATED IN THE COUNTY OF ORANGE, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS:

PARCELS 1 AND 2 OF PARCEL MAP NO. 83-1082, IN THE CITY OF YORBA LINDA, COUNTY OF ORANGE, SÏATE OF CALIFORNIA, FILED IN BOOK 205, PAGES 37 AND 38, OF MAPS, IN THE OFFICE OF THE RECORDER OF SAID COUNry.

APN: 334-212-04
Exhibit A-1-

Page 205 of 318 ends

EXHIBIT B
(MAP/TLLUSTRATTON)

ON THE FOLLOWING PAGE
Exhibit B-1-

Page 206 of 318 ends

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Page 208 of 318 ends

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Page 209 of 318 ends

PoLlcY NUMBER: 654-7063 / COMMERCIAL GENERAL LIABILITY
cG 20 26 04 13
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

ADDITIONAL INSURED - DESIGNATED

PERSON OR ORGANIZATION
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILIry COVERAGE PART

SCHEDULE
Name Of Additional lnsured Person(s) Or Organization(s):

City of Yorba Linda
its officials, officers, employees, agents, and volunteers 4845 Casa Loma Avenue
Yorba Linda, CA 92885 ''/
lnformation required to complete this Schedule, if not shown above, will be shown in the Declarations A. Section 1l - Who Is An lnsured is amended to
include as an additional insured the person(s) or
organization(s) shown in the Schedule, but only
with respect to liability for "bodily ínjury", "property damage" or "personal and advertising injury"
caused, in whole or in part, by your acts or
omissions or the acts or omissions of those acting
on your behalf:

1. ln the performance of your ongoing operations;
or

2. ln connection with your premises owned by or
rented to you.

However:

1. The insurance afforded to such additional
insured only applies to the extent permitted by
law; and

2. lf coverage provided to the additional insured is
required by a contract or agreement, the
insurance afforded to such additional insured
will not be broader than that which you are
required by the contract or agreement to
provide for such additional insured.

B. With respect to the insurance afforded to these
additional insureds, the following is added to
Section lll- Limits Of lnsurance:
lf coverage provided to the additional insured is
required by a contract or agreement, the most we
will pay on behalf of the additional insured is the
amount of insurance:
l. Required by the contract or agreement; or

2. Available under the applicable Limits of
lnsurance shown in the Declarations;
whichever is less.

This endorsement shall not increase the
applicable Limits of lnsurance shown in the
Declarations.
cG 20 26 04 13 @ lnsurance Page 210 of 318 Services Office, !nc.,2012 Page I of I

ENDORSEMENT
This endorsement, effective 12:01 A.M. 04/01 12021 forms a part of policy No. GL 654-70-63 issued to THE CHURCH 0F JESUS CHRTST 0F LATTER-DAY SAINTS by NATIONAL UNION FIRE INSURANCE COMPANY 0F PITTSBURGH, PA TH¡S ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY ADDITIONAL INSURED . PRIMARY INSURANCE \'/
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE FORM -/
Section lV, Commercial General Liability Conditions, paragraph 4., Other lnsurance, subparagraph a. Primary lnsurance, is amended by the addition of the following:

However, coverage under this policy afforded to an additional insured will apply as primary insurance where required by contract, and any other insurance issued to such additional insured shall apply as excess and noncontributory insurance.
74434 (10/99)
Applica
Reoresentative or
natüre (in States Where

Page 211 of 318 ends

PUBLIC WORKS DEPARTMENT
DATE: JANUARY 17, 2023
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: JAMIE LAI, P.E., DIRECTOR OF PUBLIC WORKS / CITY ENGINEER PREPARED BY: AUSTIN POSTOVOIT, SENIOR MANAGEMENT ANALYST SUBJECT: APPROVE AN ANNEXATION ENGINEER’S REPORT, DECLARATION OF

INTENT TO BALLOT AND ASSOCIATED PROCEEDINGS FOR

ANNEXATION AND ESTABLISHMENT OF ASSESSMENTS FOR LMAD
ZONES – ANNEXATION TERRITORY TRACT 17341 (CIELO VISTA

DEVELOPMENT)

RECOMMENDATION
It is recommended that the City Council:

1. Adopt proposed Resolution No. 2023-5836, authorizing the annexation of Tract No. 17341 (Cielo Vista Development) into the Landscape Maintenance Assessment District (LMAD) and initiating proceedings to levy a proposed new or increased assessment for the Annexation Territory of Tract 17341, known as the Cielo Vista Development within the Arterial Lighting Zone, Arterial Landscaping Zone A-3, Traffic Signal Zone TS-2, and Local Landscaping Zone L-2K within the Yorba Linda Street Lighting and LMAD, commencing Fiscal Year 2022/2023; and

2. Adopt proposed Resolution No. 2023-5837, approving the Annexation Engineer’s Report regarding the proposed new or increased assessment for the Annexation Territory of Tract 17341, known as the Cielo Vista Development within the Arterial Lighting Zone, Arterial Landscaping Zone A-3, Traffic Signal Zone TS-2, and Local Landscaping Zone L-2K within the Yorba Linda Street Lighting and LMAD for Fiscal Year 2022/2023; and

3. Adopt proposed Resolution No. 2023-5838, declaring its intention to ballot property owners for a proposed new or increased assessment within the Annexation Territory of Tract 17341, known as the Cielo Vista Development within the Arterial Lighting Zone, Arterial Landscaping Zone A-3, Traffic Signal Zone TS-2, and Local Landscaping Zone L-2K of the Yorba Linda Street Lighting and LMAD commencing with Fiscal Year 2022/2023, setting a time and place for a Public Hearing, and authorizing staff to proceed with the balloting procedures.

Page 212 of 318 ends

APPROVE AN ANNEXATION ENGINEER’S REPORT, DECLARATION OF INTENT TO

BALLOT AND ASSOCIATED PROCEEDINGS FOR ANNEXATION AND
ESTABLISHMENT OF ASSESSMENTS FOR LMAD ZONES – ANNEXATION TERRITORY TRACT 17341 (CIELO VISTA DEVELOPMENT)

BACKGROUND
In December 2016, the Orange County Board of Supervisor’s approved an Area Plan and Environmental Impact Report for a land development project within the (then) unincorporated area of Orange County known as the Cielo Vista Project (hereafter referred to as “Tract 17341” or “Property”). The project area more specifically lies north of Via Del Agua/Stonehaven Boulevard and east of Dorinda Road and San Antonio Road (Attachment 4 - Vicinity Map). The Property consists of 84.761 acres of land, proposed to be subdivided into seventy-four (74) single-family residential units. The territory that comprises the Property was annexed into the City in 2020, with the Orange County Local Agency Formation Commission Certificate of Completion being recorded at the County on or about December 20, 2019.

In 2019, the City entered into a Pre-Annexation Agreement (Agreement) for the Property with North County BRS Project, LLC, (Company) who represented the ownership of the Property at the time. The Agreement sets forth obligations for the development of the Property that must be met by the Company prior to the Property’s annexation. The Property is now owned by Lennar Homes of California, Inc. (Owner) who is developing the Tract, and assumes the responsibility to comply with the provisions of the Agreement.

A major provision of the Agreement for Tract 17341 is the commitment to eventually annex the Property into the City’s Landscape Maintenance Assessment District (LMAD). The annexation of the Property includes annexation into the LMAD’s applicable Arterial Lighting Zone, Arterial Landscaping Zone (A-3), Local Landscaping Zone (L-2K), and Traffic Signal Zone (TS-2). The agreement included a commitment to the approval of assessments up to the maximum amount of the allowable assessment, including a yearly increase based on CPI, on property with the LMAD that neighbored the Property (which is LMAD Local Landscape Zone L-2K).

As the development of the Property progressed, City staff solicited a sub-task proposal from Willdan Financial Services (Willdan) to draft an Annexation Engineer’s Report in order to adhere to the LMAD annexation requirements of the Agreement. Willdan’s scope of services included preparation of annexation documentation, database development, establishing a comprehensive improvement matrix and preparation of an annexation Engineer’s Report (Attachment 5). Their services also included the development and provision of detailed listings and descriptions of the improvements, services and/or maintenance to be funded.

Also provided was pertinent budget information, which included estimated costs, estimated service costs or rates, specific replacement costs and/or capital expenditures, City overhead, and available funding from other sources that can be used to offset costs.

Additionally, Willdan’s services includes overseeing the preparation and delivery of all balloting materials.

City staff, including LMAD personnel and the City Attorney have reviewed and approved the completed Annexation Engineer’s report and associated resolutions for the Property. It should be noted that City staff has coordinated with the Owner’s project representatives

Page 213 of 318 ends

APPROVE AN ANNEXATION ENGINEER’S REPORT, DECLARATION OF INTENT TO

BALLOT AND ASSOCIATED PROCEEDINGS FOR ANNEXATION AND
ESTABLISHMENT OF ASSESSMENTS FOR LMAD ZONES – ANNEXATION TERRITORY TRACT 17341 (CIELO VISTA DEVELOPMENT)
throughout this process. Visual depictions of the proposed boundaries for each applicable LMAD Zone related to the proposed annexation is provided in the Annexation Diagrams in Attachment 5.

DISCUSSION
Annually, the City establishes the District’s assessments for each Zone based on an estimate of the costs to maintain, operate and service the improvements in those Zones in conjunction with available revenues including fund balances, general benefit contributions, additional City contributions, and current assessment limits. To fully fund the improvements that are considered special benefits to the Property, it was determined that it is appropriate and, in the public’s, best interest to annex the Property. The net annual cost to provide the improvements in each Zone is based on the various improvements and the types of improvements and services to be provided by the LMAD for the properties that are directly associated with and benefit from those improvements.

With the annexation of Tract 17341 and the development of properties therein, approximately 2,045 square feet of decomposed granite trail and approximately 170 linear feet of equestrian trail fencing will eventually be added to the existing Local Landscaping Zone L-2K improvements. The trail and fencing are to be located on the east side of Palo Verde (the entry street access to Tract 17341), just north of Stonehaven Drive. Additional potential future trail improvements within the Tract may also be included in future engineer’s reports. A traffic signal (traffic control device) will be constructed and installed by the developer within Traffic Signal Zone TS-2 at the intersection of Via Del Agua and Yorba Linda Boulevard. This eventual signal will be included as a Zone improvement in future Engineer’s reports. There are no improvements being added to the existing Arterial Landscaping Zone A-3 or Arterial Lighting Zone as a part of this annexation. The total balloted annexation assessment amount for the Property is $34,603.88. This total is comprised of a proposed per EBU rate of $467.62, which represents the fiscal year 2022/2023 combined maximum assessment rates for Local Landscaping Zone L-2K, Arterial Landscaping Zone A-3, Arterial Lighting Zone, and Traffic Signals Zone TS-2. The initial assessments will be borne by the Owner; however, the levied amounts will eventually be assessed to subsequent property owners once housing units at the Property are sold. It should be noted that although the assessment rates being proposed are based on fiscal year 2022/2023 values, the realized levy amounts will be subject to the CPI rate increase if and when they are incorporated into the FY2023/2024 citywide Engineer’s Report for the LMAD.

The proposed Public Hearing will include the tabulation of the Proposition 218 ballots that will be mailed out to the owner of the Property. Since the entirety of the Property is owned by the Developer, only one ballot will be mailed. Pursuant to Proposition 218, the Notice of Public Hearing and assessment ballot will be post marked at least 45 days in advance of the Public Hearing. It is anticipated that the notices and ballot will be sent out on or before February 3, 2023.

Page 214 of 318 ends

APPROVE AN ANNEXATION ENGINEER’S REPORT, DECLARATION OF INTENT TO

BALLOT AND ASSOCIATED PROCEEDINGS FOR ANNEXATION AND
ESTABLISHMENT OF ASSESSMENTS FOR LMAD ZONES – ANNEXATION TERRITORY TRACT 17341 (CIELO VISTA DEVELOPMENT)
The proposed action items for Council are to adopt the proposed resolutions (Attachments 1, 2 and 3) which approve the Annexation, the Engineer's Report and declares the City's intention to levy and collect assessments for the applicable Zones and setting a Public Hearing to confirm the assessments. By the proposed Public Hearing on March 21, 2023, any public comments and written protests regarding the applicable Zone’s within District and the annual levy of assessments may be heard. The time between approval of the Annexation Engineer’s report and the Public Hearing allows at least 45 days for public review. Based upon those public comments and written protests, the City Council may order amendments to the Report or confirm the Report as submitted.

Upon conclusion of the public hearing, property owner protest ballots received will be opened and tabulated to determine whether a majority protest exists: “A majority protest exists if, upon the conclusion of the hearing, ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessment. In tabulating the ballots, the ballots shall be weighted according to the proportional financial obligation of the affected property.” With regards to the proceedings for the annexation of territory, pursuant to Section 22608 of the 1972 Act, the “right of majority protest shall be limited to the territory proposed to be annexed.” Following final approval of the Report and confirmation of the assessments, the Council may, by resolution, order the improvements to be made, and confirm the levy and collection of assessments pursuant to the 1972 Act. The assessments, as approved, will be submitted to the Orange County Auditor/Controller in tandem with the forthcoming Citywide LMAD Engineer’s Report, to be included on the property tax roll for each affected parcel.

FISCAL IMPACT
Per the Pre-Annexation agreement associated with this development, all costs incurred by the City that are associated with the annexation of Tract No. 17341 into the LMAD are eligible for reimbursement by the developer. The consultant costs for development of the focused Engineers’ Report and associated Proposition 218 services, which are also reimbursable, are approximately $9,500. It should be noted that while the proposed resolutions will be implemented this fiscal year, the first assessment for the Annexation Territory will be levied and collected commencing in fiscal year 2023/2024.

ALTERNATIVES
Council may choose to reject the recommendations to approve the Annexation Engineer’s Report, annexation processes and intent to ballot the property owner. However, this alternative would prevent the Owner’s ability to comply with the Pre-Annexation agreement’s clause committing to the annexation of Tract 17341 into the LMAD. Additionally, this action may result in the collection of less than the full cost recovery for the Property.

Page 215 of 318 ends

APPROVE AN ANNEXATION ENGINEER’S REPORT, DECLARATION OF INTENT TO

BALLOT AND ASSOCIATED PROCEEDINGS FOR ANNEXATION AND
ESTABLISHMENT OF ASSESSMENTS FOR LMAD ZONES – ANNEXATION TERRITORY TRACT 17341 (CIELO VISTA DEVELOPMENT)

ATTACHMENTS
Attachment 1 – Resolution 2023-5836
Attachment 2 – Resolution 2023-5837
Attachment 3 – Resolution 2023-5838
Attachment 4 – Vicinity Map
Attachment 5 – Annexation Engineer’s Report

Page 216 of 318 ends

RESOLUTION NO. 2023-5836

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

YORBA LINDA, PURSUANT TO THE PROVISIONS OF THE
LANDSCAPING AND LIGHTING ACT OF 1972 (SECTIONS
22500 ET SEQ. OF THE CALIFORNIA STREETS AND

HIGHWAYS CODE) INITIATING PROCEEDINGS TO
ANNEX TRACT 17341 INTO VARIOUS LANDSCAPE

MAINTENANCE ZONES AND LEVY A PROPOSED NEW

OR INCREASED ASSESSMENTS COMMENCING FISCAL
YEAR 2022/2023 FOR THE ANNEXATION TERRITORY OF
TRACT 17341, KNOWN AS THE CIELO VISTA

DEVELOPMENT WITHIN ARTERIAL LIGHTING ZONE,
ARTERIAL LANDSCAPING ZONE A-3, TRAFFIC SIGNAL
ZONE TS-2 AND LOCAL LANDSCAPING ZONE L-2K,

WITHIN THE CITY OF YORBA LINDA STREET LIGHTING

AND LANDSCAPING MAINTENANCE ASSESSMENT

DISTRICT AND ORDERING THE ENGINEER TO PREPARE
AND FILE A REPORT IN ACCORDANCE WITH ARTICLE 4
OF CHAPTER 1 OF SAID ACT
WHEREAS, the City Council of the City of Yorba Linda (“City”) did form the City of Yorba Linda Street Lighting and Landscaping Maintenance District (“District”) which includes Arterial Lighting Zone, Arterial Landscaping Zone A-3, Traffic Signal Zone TS-2, and Local Landscaping Zone L-2K, pursuant to the provisions of the Landscaping and Lighting Act of 1972 (“Act”), in which assessments have been previously levied and collected; and
WHEREAS, the City annexed Tract 17341, known as the Cielo Vista Development, (hereafter referred to as “Tract 17341” or “Annexation Territory”) to the City in or about early 2020, with the Orange County Local Agency Formation Commission Certificate of Completion being recorded at the County on or about December 20, 2019.

WHEREAS, Tract 17341 consists of 84.761 acres of land, proposed to be subdivided into seventy-four (74) single-family residential units, parcels of land therein (the Annexation Territory), as described in the Vesting Tentative Tract Map No. 17341, recorded with the County of Orange.

WHEREAS, the City entered into a Pre-Annexation Agreement with North County BRS Project, LLC, on behalf of owners of Tract 17341, which obligated the Tract 17341 to be annexed into the applicable Landscape Maintenance Assessment District.

Page 217 of 318 ends

RESOLUTION NO. 2023-5836
PAGE NO. 2
WHEREAS, the Annexation Territory for Tract 17341 lies within Arterial Lighting Zone, Arterial Landscaping Zone A-3, Traffic Signal Zone TS-2, and Local Landscaping Zone L-2K, and the City is now prepared to annex Tract 17341 into the District.

WHEREAS, said Act requires that proceedings for the levy of assessments shall be initiated by resolution describing any proposed new improvements or any substantial changes in existing improvements or assessments in accordance with Chapter 3 (commencing with Section 22620) of Part 2 of Division 15 of the Streets and Highways Code of the State of California, and ordering the Engineer to prepare and file a report in accordance with Article 4 of Chapter 1 of Said Act.

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

Section 1 The City Council of the City of Yorba Linda hereby annexes the Annexation Territory into the City of Yorba Linda Street Lighting and Landscaping Maintenance District and proposes the levy of proposed new or increased assessments for the Annexation Territory of Tract 17341, known as the Cielo Vista Development within Arterial Lighting Zone, Arterial Landscaping Zone A-3, Traffic Signal Zone TS-2, and Local Landscaping Zone L-2K within the City of Yorba Linda Street Lighting and Landscaping Maintenance District commencing in Fiscal Year 2022/2023 pursuant to the Act.

Section 2 The proposed improvements within the Annexation Territory of Tract 17341, known as the Cielo Vista Development within Arterial Lighting Zone, Arterial Landscaping Zone A-3, Traffic Signal Zone TS-2, and Local Landscaping Zone L-2K are generally described as the servicing, maintaining, and operating of landscaping improvements and facilities. The work to be performed may include but is not limited to (as applicable), the personnel, materials, equipment, electricity, water, contract services, repair and rehabilitation of the improvements and incidental expenses required to operate the District and provide the improvements and services within the Zones.

Section 3 The City Council hereby orders the Assessment Engineer to prepare and file with the City Clerk a written Annexation Engineer’s Report for the Annexation Territory of Tract 17341, known as the Cielo Vista Development within Arterial Lighting Zone, Arterial Landscaping Zone A-3, Traffic Signal Zone TS-2, and Local Landscaping Zone L-2K in accordance with Section 22565 et seq. of the California Streets and Highways Code.

PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Yorba Linda on this 17th day of January, 2023. ___________________________________

GENE HERNANDEZ, MAYOR

CITY OF YORBA LINDA

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RESOLUTION NO. 2023-5836
PAGE NO. 3
ATTEST:
____________________________

MARCIA BROWN, CITY CLERK

CITY OF YORBA LINDA
APPROVED AS TO FORM:

RUTAN & TUCKER LLP
____________________________

CITY ATTORNEY
STATE OF CALIFORNIA) ss.

COUNTY OF ORANGE)
I, MARCIA BROWN, City Clerk of the City of Yorba Linda, California, DO HEREBY CERTIFY that the foregoing Resolution was adopted at a regular meeting of the City Council of the City of Yorba Linda held on the 17th day of January, 2023, and was carried by the following roll call vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
___________________________________

MARCIA BROWN, CITY CLERK

CITY OF YORBA LINDA

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RESOLUTION NO. 2023-5837

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

YORBA LINDA, APPROVING THE ANNEXATION

ENGINEER'S REPORT REGARDING A PROPOSED NEW

OR INCREASED ASSESSMENT FOR THE ANNEXATION
TERRITORY OF TRACT 17341, KNOWN AS THE CIELO

VISTA DEVELOPMENT WITHIN ARTERIAL LIGHTING
ZONE, ARTERIAL LANDSCAPING ZONE A-3, TRAFFIC
SIGNAL ZONE TS-2 AND LOCAL LANDSCAPING ZONE L2K WITHIN THE YORBA LINDA STREET LIGHTING AND

LANDSCAPING MAINTENANCE ASSESSMENT DISTRICT
FOR FISCAL YEAR 2022/2023
WHEREAS, the City Council of the City of Yorba Linda, California has adopted Resolution No. 2023-5836 Initiating Proceedings for the proposed new or increased assessments for the Annexation Territory of Tract 17341, known as the Cielo Vista Development, within the Arterial Lighting Zone, Arterial Landscaping Zone A-3, Traffic Signal Zone TS-2, and Local Landscaping Zone L-2K within the City of Yorba Linda Street Lighting and Landscaping Maintenance District commencing in Fiscal Year 2022/2023, ordering the City’s Assessment Engineer to prepare and file a report regarding such matters pursuant to Chapter 3 of Part 2 of Division 15 of the Streets and Highway Code of the State of California; and
WHEREAS, the City’s Assessment Engineer has prepared and filed with the City Clerk an Annexation Engineer’s report, and the City Clerk has presented such report for the City of Yorba Linda Street Lighting and Landscaping Maintenance District for the Annexation Territory of Tract 17341, known as the Cielo Vista Development, within the Arterial Lighting Zone, Arterial Landscaping Zone A-3, Traffic Signal Zone TS-2, and Local Landscaping Zone L-2K for Fiscal Year 2022/2023 (“Report”); and WHEREAS, City Council has examined and reviewed said Report.

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

Section 1. Incorporation of Recitals. The foregoing recitals are incorporated herein by this reference.

Section 2. Approval of Report. The Report, including plans and specifications for the improvements and the estimate of the costs of the improvements, diagrams for the Annexation Territory of Tract 17341, known as the Cielo Vista Development, within the Arterial Lighting Zone, Arterial Landscaping Zone A-3, Traffic Signal Zone TS-2, and

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RESOLUTION NO. 2023-5837
PAGE NO. 2
Local Landscaping Zone L-2K and the proposed new or increased assessments for the costs of the improvements, is hereby approved as filed.

Section 3. Severability. If any section, subsection, sentence, clause, phrase, or portion of this Resolution is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining provisions of this Resolution and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions might subsequently be declared invalid or unconstitutional. Additionally, if any section, subsection, sentence, clause, phrase, portion, zone, or subzone of the Report is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining provisions of the Report and each section, subsection, subdivision, sentence, clause, phrase, portion, zone, or subzone thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, portions, zones, or subzones might subsequently be declared invalid or unconstitutional.

Section 4. EFFECTIVE DATE. This Resolution shall become effective upon its adoption.

PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Yorba Linda on this 17th day of January 2023.
___________________________________

GENE HERNANDEZ, MAYOR

CITY OF YORBA LINDA
ATTEST:
____________________________

MARCIA BROWN, CITY CLERK

CITY OF YORBA LINDA
APPROVED AS TO FORM:

RUTAN & TUCKER LLP
____________________________

CITY ATTORNEY

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RESOLUTION NO. 2023-5837
PAGE NO. 3
STATE OF CALIFORNIA) ss.

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
___________________________________

MARCIA BROWN, CITY CLERK

CITY OF YORBA LINDA

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RESOLUTION NO. 2023-5838

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

YORBA LINDA, PURSUANT TO THE PROVISIONS OF THE
LANDSCAPING AND LIGHTING ACT OF 1972,

DECLARING ITS INTENTION TO BALLOT PROPERTY

OWNERS FOR PROPOSED NEW OR INCREASED

ASSESSMENTS FOR ANNEXATION TERRITORY OF
TRACT 17341, KNOWN AS THE CIELO VISTA

DEVELOPMENT WITHIN ARTERIAL LIGHTING ZONE,
ARTERIAL LANDSCAPING ZONE A-3, TRAFFIC SIGNAL
ZONE TS-2 AND LOCAL LANDSCAPING ZONE L-2K

WITHIN THE YORBA LINDA STREET LIGHTING AND

LANDSCAPING MAINTENANCE ASSESSMENT DISTRICT
COMMENCING FISCAL YEAR 2022/2023, SETTING A

TIME AND PLACE FOR A PUBLIC HEARING, AND

AUTHORIZING STAFF TO PROCEED WITH THE

BALLOTING PROCEDURES
WHEREAS, there currently exists in the City of Yorba Linda an assessment district known as the Yorba Linda Lighting and Landscaping Maintenance District (“District”); and WHEREAS, by Resolution No. 2023-5836, the City Council of the City of Yorba Linda initiated proceedings to levy and collect proposed new or increased assessments for the Annexation Territory of Tract 17341, known as the Cielo Vista Development within Arterial Lighting Zone, Arterial Landscaping Zone A-3, Traffic Signal Zone TS-2, and Local Landscaping Zone L-2K within the District commencing in Fiscal Year 2022/2023 and ordered the City Engineer to prepare the report regarding such assessments, pursuant to the provisions of the Landscaping and Lighting Act of 1972 of the California Streets and Highways Code (hereafter the “Act,” starting at Streets and Highways Code Section 22500); and
WHEREAS, by Resolution No. 2023-5837, the City Annexation Engineer’s report for the proposed new or increased assessments for Annexation Territory of Tract 17341, known as the Cielo Vista Development within Arterial Lighting Zone, Arterial Landscaping Zone A-3, Traffic Signal Zone TS-2, and Local Landscaping Zone L-2K, commencing in Fiscal Year 2023/2024 has been approved by the City Council.

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

Section 1. The foregoing recitals are incorporated herein by this reference.

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RESOLUTION NO. 2023-5838
PAGE NO. 2
Section 2. Pursuant to the Act, the City Council hereby finds and declares that the public interest and necessity require the maintenance and servicing of landscaping and public lighting facilities within the City, and contingent upon compliance with, as applicable, the requirements of the Act, Article XIIID of the California Constitution (commonly known as “Proposition 218”) and the Proposition 218 Omnibus Implementation Act (set forth at Government Code Sections 53750-53758), the City Council hereby declares its intention to levy and collect proposed new or increased assessments for Fiscal Year 2022/2023 within Annexation Territory of Tract 17341, known as the Cielo Vista Development within the Arterial Lighting Zone, Arterial Landscaping Zone A-3, Traffic Signal Zone TS-2, and Local Landscaping Zone L-2K of the Yorba Linda Lighting and Landscaping Maintenance District.

Under the Act, before levying and collecting proposed new or increased assessments in the assessment district, the City Council is required to adopt a resolution declaring its intention to do so.

Section 3. The existing and proposed improvements in the District within Annexation Territory of Tract 17341, known as the Cielo Vista Development within the Arterial Lighting Zone, Arterial Landscaping Zone A-3, Traffic Signal Zone TS-2, and Local Landscaping Zone L-2K are generally described as the construction, installation, operation, servicing, and maintenance of the landscaping of green belts, multi-purpose trails, median islands and slopes adjacent to public rights-of-way. The location and boundaries of the Arterial Lighting Zone, Arterial Landscaping Zone A-3, Traffic Signal Zone TS-2, and Local Landscaping Zone L-2K are shown on a map in the Annexation Engineer’s Report referenced in Section 4 (below) and the third recital (above). In addition, a list of the parcel numbers for each of the properties in the above-listed Zones is on file with the City Clerk.

Section 4. Reference is hereby made to the Annexation Engineer’s Report Annexation Territory of Tract 17341, known as the Cielo Vista Development within Arterial Lighting Zone, Arterial Landscaping Zone A-3, Traffic Signal Zone TS-2, and Local Landscaping Zone L-2K for the proposed new or increased assessments commencing in Fiscal Year 2023/2024, approved by a resolution the City Council and on file with the City Clerk, which contains a full description of the improvements, the boundaries of the Zone within the District, and the proposed new or increased assessments upon assessable lots and parcels of land within the Zone within the District.

Section 5. Contingent on compliance with the Act’s, Proposition 218’s and the Proposition 218 Omnibus Implementation Act’s balloting procedure(s), the City Council proposes to levy and collect a new or increased assessment upon properties in the Annexation Territory of Tract 17341, known as the Cielo Vista Development within Arterial Lighting Zone, Arterial Landscaping Zone A-3, Traffic Signal Zone TS-2, and Local Landscaping Zone L-2K of the City of Yorba Linda Street Lighting and Landscaping Maintenance District for Fiscal Year 2022/2023, as described in the Annexation Engineer’s Report. The existing assessment in the Zone is proposed to increase from the previous year. Parcels

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RESOLUTION NO. 2023-5838
PAGE NO. 3
within Annexation Territory of Tract 17341, known as the Cielo Vista Development within the Arterial Lighting Zone, Arterial Landscaping Zone A-3, Traffic Signal Zone TS-2, and Local Landscaping Zone L-2K that are owned or used by any county, city, special district or other agency shall be assessed unless the City demonstrates by clear and convincing evidence that such lots or parcels receive no special benefit from proposed improvements.

Section 6. Notice is hereby given that on Tuesday, March 21, 2023, at 7:00 p.m., in the City Council Chambers at 4845 Casa Loma Avenue, Yorba Linda, at a Regular Meeting of the City Council, the City Council will hold a Public Hearing to tabulate Proposition 218 ballots, consider all oral statements, and communication made or filed by any interested person concerning the proposed new or increased assessments for the Annexation Territory of Tract 17341, known as the Cielo Vista Development within the Arterial Lighting Zone, Arterial Landscaping Zone A-3, Traffic Signal Zone TS-2, and Local Landscaping Zone L-2K for Fiscal Year 2022/2023 for the Yorba Linda Lighting and Landscaping Maintenance District.

Section 7. Pursuant to the Act, the California Constitution, and the Proposition 218 Omnibus Implementation Act, an assessment ballot proceeding is hereby called on the matter of confirming the proposed new or increased assessment within the Annexation Territory of Tract 17341, known as the Cielo Vista Development within the Arterial Lighting Zone, Arterial Landscaping Zone A-3, Traffic Signal Zone TS-2, and Local Landscaping Zone L-2K, as outlined in the Annexation Engineer’s Report. Under the supervision of the City Clerk’s Office, City staff is authorized and directed to proceed with the balloting procedure for the Annexation Territory of Tract 17341, known as the Cielo Vista Development within the Arterial Lighting Zone, Arterial Landscaping Zone A-3, Traffic Signal Zone TS-2, and Local Landscaping Zone L-2K of the City of Yorba Linda Street Lighting and Landscaping Maintenance District. The ballots and notices for the Public Hearing shall be distributed to the property owner(s) of record as of the last County equalized roll. Property owner or owners of each affected parcel may return the ballot by mail or in person to the City Clerk not later than the conclusion of the Public Hearing noted above.

Section 8. The City Clerk or their designee is hereby authorized and directed to give Notice of the Public Hearing referred to in Section 6 of this Resolution and distribute property owner protest ballots referred to in Section 7 of this Resolution in accordance with applicable law. The Notice and ballots shall be distributed by first class mail to the property owner(s) of records, as provided by the County of Orange, for each parcel within the Annexation Territory of Tract 17341, known as the Cielo Vista Development within the Arterial Lighting Zone, Arterial Landscaping Zone A-3, Traffic Signal Zone TS-2, and Local Landscaping Zone L-2K not less than 45 days before the date of the Public Hearing pursuant to the California Constitution.

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RESOLUTION NO. 2023-5838
PAGE NO. 4
Section 9. The property owner protest ballot proceeding conducted for the Annexation Territory of Tract 17341, known as the Cielo Vista Development within Arterial Lighting Zone, Arterial Landscaping Zone A-3, Traffic Signal Zone TS-2, and Local Landscaping Zone L-2K will constitute the property owners’ approval of rejection of the proposed new or increased assessments and assessment range formula described in the Annexation Engineer’s Report.

Section 10. In accordance with Streets and Highways Code Section 22660(a), the City Council has determined that the estimated cost of certain proposed improvements, described in Section 22525, subdivisions (a) through (d) of the Act, are greater than can conveniently be raised from a single assessment and, as a result, shall be collected in installments over a period not to exceed five fiscal years and held in a reserve account, as noted in the Annexation Engineer’s Report.

Section 11. General descriptions of the above-referenced proposed improvements for all Zone and Sub-Zone in the District, as well as the estimated costs thereof, the number of annual installments and years during which they are to be collected, and the maximum amount of each annual installment, are described in the Capital Improvement Renovation Budget on file with the City Clerk.

Section 12. If any section, subsection, sentence, clause, phrase, or portion of this Resolution is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining provisions of this Resolution and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions might subsequently be declared invalid or unconstitutional. Additionally, if any section, subsection, sentence, clause, phrase, portion, zone, or subzone of the Annexation Engineer’s Report is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining provisions of the Annexation Engineer’s Report and each section, subsection, subdivision, sentence, clause, phrase, portion, zone, or subzone thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, portions, zones, or subzones might subsequently be declared invalid or unconstitutional.

Section 11. This Resolution shall become effective upon its adoption.

PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Yorba Linda on this 17th day of January, 2023.
___________________________________

GENE HERNANDEZ, MAYOR

CITY OF YORBA LINDA

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RESOLUTION NO. 2023-5838
PAGE NO. 5
ATTEST:
____________________________

MARCIA BROWN, CITY CLERK

CITY OF YORBA LINDA
APPROVED AS TO FORM:

RUTAN & TUCKER LLP
____________________________

CITY ATTORNEY
STATE OF CALIFORNIA) ss.

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
___________________________________

MARCIA BROWN, CITY CLERK

CITY OF YORBA LINDA

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= Approximate location of Tract 17341
Updated 12/12/2022
Tract
No. 17341
Site

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City of Yorba Linda
Street Lighting and Landscaping
Maintenance District
Engineer’s Report

ANNEXATION OF TERRITORY
AND

ESTABLISHMENT OF ANNUAL ASSESSMENTS
(TRACT 17341)
FISCAL YEAR 2022/2023
Intent Meeting: January 17, 2023
Public Hearing: March 21, 2023
JANUARY 2023

PREPARED BY

WILLDAN FINANCIAL SERVICES
27368 Via Industria
Suite 200
Temecula, CA 92590
T 951.587.3500 | 800.755.6864
F 951.587.3510
www.willdan.com Page 229 of 318

Page 230 of 318 ends

Table of Contents
Introduction...............................................................................................1 Ballot Proceedings .................................................................................................... 2 Report Content .......................................................................................................... 3 Part I — Plans and Specifications ...........................................................5 District Overview ....................................................................................................... 5 Annexation Territory Overview ................................................................................ 6 Part II — Method of Apportionment.......................................................13 Legislative Authority and Provisions..................................................................... 13 Benefit Analysis....................................................................................................... 14 Assessment Methodology ...................................................................................... 18 Part III — Estimate of Costs ...................................................................24 Part IV — Assessment Roll ....................................................................26 Part V — Annexation Diagrams .............................................................27

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Yorba Linda Street Lighting and Landscaping Maintenance District Engineer’s Report;
Annexation of Tract 17341
Fiscal Year 2022/2023

Page 1 ends

Introduction
The City of Yorba Linda (the “City”), under the provisions of the Landscape and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code (the “1972 Act”) and the provisions of the California Constitution Article XIII D (“Constitution”), annually levies and collects special assessments for the City’s maintenance assessment district designated as:

Street Lighting and Landscaping Maintenance District
(the “District”) in order to provide and maintain various landscaping and lighting improvements throughout the City that provide special benefits to properties within the City.

The provisions of the 1972 Act provide for the annexation of territory into an existing district and zones when the territory in the annexation receives substantially the same proportional special benefits from the improvements and the costs associated with the installation, maintenance, and servicing of the improvements may be assessed to properties, which benefit from the improvements, both existing parcels and annexation parcels.

The Yorba Linda City Council being the legislative body for the District, may, pursuant to Chapter 2, Article 2 the 1972 Act, annex territory to the District and levy annual assessments related thereto. This Engineer’s Report (“Report”) has been prepared pursuant to Chapter 1, Article 4 and Chapter 3 of the 1972 Act, and presented to the City Council for their consideration and approval of the improvements and services to be provided to parcels with the territory to be annexed and the levy and collection of the proposed new annual assessments related thereto to fund the costs and expenses required to service and maintain the improvements that provide special benefits to those parcels.

This Report specifically addresses the annexation of Tract 17341, known as the Cielo Vista Development, (hereafter referred to as “Tract 17341” or “Annexation Territory”) to the District. The territory that comprises the Annexation Territory was annexed to the City in or about early 2020, with the Orange County Local Agency Formation Commission Certificate of Completion being recorded at the County on or about December 20, 2019. Tract 17341 consists of 84.761 acres of land, proposed to be subdivided into seventy-four (74) single-family residential units. Tract 17341 and the parcels of land therein (the Annexation Territory) as addressed in this Report, is being annexed into the District and concurrently annexed into the Arterial Lighting Zone, Arterial Landscaping Zone A-3, Traffic Signal Zone TS-2, and Local Landscaping Zone L-2K and is proposed to be levied proportional assessments for the special benefits received from the improvements and services associated with those benefit zones commencing in Fiscal Year 2023/2024, including the additional local landscaping improvements being installed as part of Tract 17341 which will be incorporated into Local Landscaping Zone L-2K.

Annually, the City establishes the District’s assessments for each Zone based on an estimate of the costs to maintain, operate and service the improvements in those Zones in conjunction with available revenues including fund balances, general benefit contributions, additional City contributions, and current assessment limits. To fully fund the improvements that are considered special benefits to properties in Tract 17341, the City Council has determined that it is appropriate and in the public’s best interest to annex Tract 17341 into the applicable District Zones and ballot the parcels within the Annexation Territory for new/increased assessments that address the estimated special benefit improvement costs associated with those parcels and applicable benefit zones including, but not limited to the estimated expenditures for regular annual maintenance and repairs; incidental expenditures related to the operation and administration of the District and

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Yorba Linda Street Lighting and Landscaping Maintenance District Engineer’s Report;
Annexation of Tract 17341
Fiscal Year 2022/2023

Page 2 ends

Zones; and the collection of funds for operational reserves and/or for periodic maintenance and improvement rehabilitation projects as authorized by the 1972 Act.

The annual assessments (new/increased maximum assessment) proposed to be levied on properties within the Annexation Territory as described herein will provide a funding source for the continued operation and maintenance of the landscaping and lighting improvements that provide special benefits to those properties and are consistent with the maximum assessments approved by the City Council for the Arterial Lighting Zone, Arterial Landscaping Zone A-3, Traffic Signal Zone TS-2, and Local Landscaping Zone L-2K in fiscal year 2022/2023.

The net annual cost to provide the improvements in each Zone is based on the various improvements and the types of improvements and services to be provided by the District for the properties that are directly associated with and benefit from those improvements. This net cost of providing the improvements and services is allocated to the benefiting properties within each Zone including the Annexation Territory using a weighted method of apportionment (refer to Assessment Methodology in Section II, Method of Apportionment) that calculates the proportional special benefit and assessment for each parcel as compared to other properties that benefit from those District improvements and services.

The word “parcel,” for the purposes of this Report, refers to an individual property assigned its own Assessor’s Parcel Number (“APN”) by the Orange County Assessor’s Office. The Orange County Auditor/Controller uses Assessor’s Parcel Numbers and specific Fund Numbers to identify properties to be assessed on the tax roll for the District assessments.

If any section, subsection, sentence, clause, phrase, portion, zone, or subzone of this Engineer’s Report is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining provisions of the Engineer’s Report and each section, subsection, subdivision, sentence, clause, phrase, portion, zone, or subzone thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, portions, zones, or subzones might subsequently be declared invalid or unconstitutional.

Ballot Proceedings
As part of this annexation proceeding, pursuant to the provisions of Article XIIID, Section 4 of the California Constitution, the City shall conduct a property owner protest ballot proceeding (referred to as “Ballot Proceeding”) for the proposed levy of new assessments as described in this Report.

In conjunction with this Ballot Proceeding, the City Council will conduct a noticed public hearing to consider public testimonies, comments, and written protests regarding the levy of the proposed new assessments. Upon conclusion of the public hearing, property owner protest ballots received will be opened and tabulated to determine whether majority protest exists:
“A majority protest exists if, upon the conclusion of the hearing, ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessment. In tabulating the ballots, the ballots shall be weighted according to the proportional financial obligation of the affected property.”
With regards to the proceedings for the annexation of territory, pursuant to Section 22608 of the 1972 Act, the “right of majority protest shall be limited to the territory proposed to be annexed”.

Therefore, as part of these proceedings for annexation, only the properties within the Annexation

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Yorba Linda Street Lighting and Landscaping Maintenance District Engineer’s Report;
Annexation of Tract 17341
Fiscal Year 2022/2023

Page 3 ends

Territory shall be balloted for the proposed assessments and the determination of majority protest shall be limited to those parcels.

After completion of the ballot tabulation, the City Council will confirm the results of the balloting.

If majority protest exists for the proposed new assessments, further proceedings to annex the territory and implement the proposed assessments (including the inflationary adjustments) for the parcels within the Annexation Territory shall be abandoned at that time. If tabulation of the ballots indicate that majority protest does not exist for the proposed assessments and the assessment range formula presented and described herein, the City Council may adopt this Report (as submitted or amended), approve the assessment diagrams, and confirm the assessment rates and assessments for the Annexation Territory and the corresponding Zones as presented herein.

In such case, the Annexation Territory and the applicable Zone assessments as approved, shall by reference be made part of and incorporated into the District’s “Engineer’s Annual Report” and the annual assessments for these properties along with the other properties within the District, shall be submitted to the Orange County Auditor/Controller for inclusion on the property tax roll for each affected parcel commencing in fiscal year 2023/2024.

Report Content
This Report consists of five (5) parts:

Part I
Plans and Specifications: This section provides an overall description of the Annexation Territory, the District, the Zone applicable to the Annexation Territory, and the improvements to be provided and associated with the Annexation Territory. The Zones previously established for this District and in part associated with the Annexation Territory are based on the type of improvements and services provided to various properties within the District. The proposed new assessments as outlined in this Report are based on the landscaping and lighting improvements and appurtenant facilities that provide a special benefit to the properties within the Annexation Territory including operational expenses authorized pursuant to the 1972 Act. The plans and specifications contained in this section of the Report describe the overall nature and extent of the improvements. More detailed information regarding the specific plans and specifications are on file in the Engineering Department and by reference are made part of this Report.

Part II
Method of Apportionment: This section includes a discussion of the general and special benefits associated with the various improvements to be provided to properties within the Annexation Territory (Benefit Analysis), which includes a discussion of the proportional costs of the special benefits and a separation of costs considered to be of general benefit (and therefore not assessed). This section of the Report also outlines the method of calculating each property’s proportional special benefit necessary to calculate the property’s annual assessment. This method of apportionment is consistent with the previously adopted method of apportionment for the District that was approved by the property owners in a ballot proceeding conducted in 1997 and/or any subsequent Ballot Proceedings conducted for new or increased assessments for various Zones.

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Yorba Linda Street Lighting and Landscaping Maintenance District Engineer’s Report;
Annexation of Tract 17341
Fiscal Year 2022/2023

Page 4 ends

Part III
Estimate of Costs: An estimate of the annual costs to operate, maintain, and service the landscaping and lighting improvements and appurtenant facilities. The budget for the Annexation Territory reflects the proportional estimate of the maintenance costs and incidental expenses including, but not limited to, labor, materials, utilities, equipment, and administration expenses as well as the collection of other appropriate funding authorized by the 1972 Act and deemed necessary to fully support the improvements associated with each Zone improvements that directly benefit the Annexation Territory. Those improvements and/or costs determined to be of general benefit shall be funded by a City contribution. While not shown as a budgeted expenditure at this time, if the proposed assessments are approved, the City Council may at their discretion, provide a temporary advance (loan) to fund and expedite various capital improvement projects (repair and rehabilitation of the improvements). Such loans will be paid back over time by the assessments. In addition to the general benefit costs, the City may provide additional funding to support the maintenance and operation of the improvements considered to be of special benefit, but City staff shall make the determination of which improvements, and the extent of the services and activities that shall be provided based on available revenues.

Part IV
Assessment Roll: The Assessment Roll contains a listing of all Assessor Parcel Numbers of the properties within the Annexation Territory and each parcel’s corresponding “Balloted Maximum Assessment” calculated for fiscal year 2022/2023. The proposed fiscal year 2022/2023 maximum assessment amounts balloted for each parcel including the assessment range formula is based on each parcel’s calculated proportional special benefit as outlined in the Method of Apportionment (Part II of this Report) and the maximum assessment rates established for each applicable Zone associated with the Annexation Territory as summarized (Part III of this Report).

A listing of the Assessor’s Parcel Numbers and the corresponding fiscal year 2022/2023 Balloted Maximum Assessment amounts for each parcel within the Annexation Territory is contained in the Assessment Roll (Part IV of this Report) although the first assessment for the Annexation Territory will be levied and collected commencing in fiscal year 2023/2024.

Part V
Annexation Diagrams: This section of the Report contains diagrams showing the boundaries of the Annexation Territory which incorporates the parcels determined to receive special benefits from the various District improvements and the Zones to which the Annexation Territory is being concurrently annexed into. Parcel identification, the lines and dimensions of each lot, parcel, and subdivision of land within the Annexation Territory as shown on these diagrams and listed on the Assessment Roll are inclusive of such parcels shown on the Orange County Assessor's Parcel Maps at the time this Report was prepared and shall include any subsequent lot line adjustments or parcel changes therein. Reference is hereby made to the Orange County Assessor’s Parcel Maps for a detailed description of the lines and dimensions of each lot and parcel of land within the Annexation Territory.

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Yorba Linda Street Lighting and Landscaping Maintenance District Engineer’s Report;
Annexation of Tract 17341
Fiscal Year 2022/2023

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Part I — Plans and Specifications
District Overview
Excluding the proposed Annexation Territory, the existing District consists of all lots or parcels of land within the City of Yorba Linda and the boundaries of the District are coterminous with the City boundaries. Upon successful annexation of the Annexation Territory, the District boundaries will once again be coterminous with the City boundaries. The purpose of the District is to provide in part through annual assessments, funding for the ongoing operation, maintenance, and servicing of landscaping, street lighting, traffic signal improvements and related facilities and services in various areas throughout the City that provided special benefit to the parcels within the City. Improvements currently provided within the District generally include but are not limited to:
➢ Landscape improvements within the street medians and parkway side-panels, including parkways, slopes, and entryways; and various non-street landscape areas including greenbelts, slopes, local trails, and open space areas within various landscape zones.

These landscaped improvements and areas may include but are not limited to various combinations of trees; turf; ground cover; shrubs, plantings and other amenities including retaining walls, monuments, fencing, sidewalks, stamped concrete or pavers, irrigation and drainage systems, and related appurtenances.
➢ Lighting facilities on the public streets within the City including both street lights and traffic signals. These lighting improvements may include but are not limited to street lights located on the City’s arterial streets, traffic signals located throughout the City and local street lights within or adjacent to the various developments and subdivisions.

District Zones of Benefit
In accordance with the 1972 Act, the District utilizes benefit zones (“Zones”) to address variations in the nature, location, and extent of the improvements that provide special benefits to parcels in the District. Parcels within the District are grouped and assigned to specific benefit zones based on the improvements and/or type of improvements that provide special benefit to each of the properties within that Zone.

For fiscal year 2022/2023 the District is comprised of the following Zones:
➢ Nine Arterial Landscaping Zones (A-1 through A-9);
➢ Thirty-three Local Landscaping Zones:
• L-1A, through L-1E;
• L-2A through L-2V;
• L-3;
• L-4A and L-4B;
• L-5A, L-5B and L-5C;
➢ One citywide Arterial Street Lighting Zone,
➢ A non-contiguous Local Street Lighting Zone, and
➢ Three Traffic Signal Zones (TS-1, TS-2, and TS-3),

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Description of District Improvements
As authorized by the 1972 Act, the improvements provided by the District and associated with each Zone incorporate various landscaping or lighting improvements that are maintained and serviced for the benefit of real property within the District. The maintenance of the landscape improvements may also include various appurtenances that may include but is not limited to entry monuments; various types of fencing; retaining walls; ornamental lighting or other ornamental fixtures; signage; and irrigation, drainage, and electrical equipment. In most cases, these improvements were either installed in direct connection with the development of properties within the Zones or were installed for the benefit of those properties as a result of property development or potential development of those properties and were considered necessary for the development of those properties to their full and best use. The work to be performed within each respective Zone may include but is not limited to (as applicable), the personnel, materials, equipment, electricity, water, contract services, repair and rehabilitation of the improvements and incidental expenses required to operate the District and provide the improvements and services for each Zone. The improvements provided within the District and for which parcels receive special benefits are generally described in the following.

Annexation Territory Overview
Description of the Annexation Territory
The proposed Annexation Territory is inclusive of Tract 17341, known as the Cielo Vista Development. The Annexation Territory consists of approximately 84.761 acres of land, proposed to be subdivided into seventy-four (74) single-family residential units and related private streets, common areas and open spaces. As of the writing of this Report, the Annexation Territory is inclusive of four Assessor Parcel Numbers (“APNs”) 351-031-18, 351-031-19, 351-031-20, and 351-031-21 which are generally located north of Via Del Agua and Stonehaven Drive within the existing residential developments identified as Tract 13800 and Tract 10455.

The Annexation Territory is being annexed into the District for fiscal year 2022/2023 and based on the improvements to be provided and maintained through the District and for which parcels within the Annexation Territory will receive special benefits, the Annexation Territory will be concurrently annexed into the following Zones:
➢ Arterial Lighting Zone;
➢ Arterial Landscaping Zone A-3 (“Zone A-3”);
➢ Traffic Signal Zone TS-2 (“Zone TS-2”); and
➢ Local Landscaping Zone L-2K (“Zone L-2K”),
The properties associated with and identified herein as the Annexation Territory are shown on the Assessment Diagrams incorporated herein as Part V of this Report.

Description of Improvements to be Maintained and Serviced The improvements installed, maintained, and serviced within the District and which will provide special benefits to parcels within the Annexation Territory are generally described as: Arterial landscaping improvements in proximity to the Annexation Territory and surrounding properties of Zone A-3; Local landscaping improvements within or adjacent to the Annexation Territory and

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surrounding properties of Local Landscaping Zone L-2K; Traffic signal improvements in proximity to the Annexation Territory and surrounding properties of Traffic Signal Zone TS-2; and, Arterial streetlighting improvements. Together these improvements provide special benefits to the parcels located within the Annexation Territory as well as various other properties within the associated District Zones identified above. These improvements collectively may include, but are not limited to, landscaping, lighting, planting, shrubbery, trees, grass, bark, other ornamental vegetation, irrigation systems, hardscapes, and fixtures; facilities which are appurtenant to any of the foregoing, or which are necessary or convenient for the maintenance or servicing thereof.

The Annexation Territory, as part of the District and specified Zones therein, will fund costs in connection with the maintenance and servicing including, but not limited to, labor, electrical energy, water, materials, contracting services, administration, and other expenses necessary for the satisfactory maintenance and servicing of the improvements.

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

The specific improvements to be provided and maintained for the special benefit of the parcel within the Annexation Territory are identified and summarized in the following Zone descriptions.

Arterial Landscaping Improvements (Zone A-3)
Within the District there are nine (9) designated Arterial Landscaping Zones (A-1 through A-9), the boundaries of which collectively are intended to be coterminous with the City boundaries. Each of these nine Arterial Landscaping Zones have been established to reflect the proportional special benefit properties within the District receive from the District maintained arterial landscaping improvements. The boundaries of each Arterial Landscaping Zone are based on the improvements being maintained through the District assessments and the relationship and proximity of the developments and properties that derive special benefit from those improvements. The location, extent and types of improvements and the proximity of the various parcels and developments to those improvements were evaluated in developing the boundaries of the nine Arterial Landscaping Zones and proportional special benefit cost allocations with the boundaries of the nine Zones being defined primarily by streets that are considered primary arterials or other thoroughfares that may be considered secondary arterials. Therefore, some improvements (specifically medians) may be located between two Zones and those improvements would be shared by those two adjacent Zones.

In such cases, the special benefit and cost of providing such improvements are shared by parcels in both Zones. However, because the extent and type of landscaping on either side of these streets (parkways, side panels, or adjacent landscape areas) may often times be dramatically different, the special benefit and the costs associated with these improvements on primary arterial streets are assigned and allocated to the adjacent Arterial Landscaping Zone and on other thoroughfares (including secondary arterials) these parkways, side panels, or adjacent landscape areas are typically funded by the abutting Local Landscaping Zone, instead of the Arterial Landscaping Zone.

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The following is a brief description and summary of the landscaped areas within Zone A-3 which provide special benefit to the parcels within Zone A-3 including the Annexation Territory. A visual depiction of the current Zone A-3 boundaries and the proposed Annexation Territory as well as the location of the Zone A-3 landscape improvement areas is provided in the Annexation Diagrams in Part V of this Report. The existing properties within Zone A-3 and the Annexation Territory will proportionately share and receive special benefit from the maintenance, servicing, and operation of:
➢ Existing Zone A-3 Improvements
The properties within this Arterial Landscaping Zone including the Annexation Territory proportionately share and receive special benefit from the maintenance, servicing, and operation of approximately 294,820 square feet of designated landscape improvement area that incorporates an estimated 42,970 square feet of irrigated median landscaping and 12,130 square feet non-irrigated/hardscape median area; 123,690 square feet of irrigated sloped/mostly-sloped landscaped; and 116,030 square feet of flat/moderately-sloped landscaped area of which 88,790 square feet is irrigated and 27,240 square feet of nonirrigated area and trails. Portions of the medians associated with Zone A-3 are shared by properties in an adjacent Zone (shared by Zone A-2) and the median square footage presented above represents this Zone’s proportional allocation of the total square footage of those shared medians. The improvement areas for which properties in this Zone receive special benefit are generally located in the following area(s):
• Esperanza Road from approximately 370 feet east of Via Del Cazador (the boundary line between Zones A-2 and A-3), east to a point approximately 1,450 east of New River Road; • Yorba Linda Boulevard from approximately 450 feet northwest of Via Del Agua (approximately 500 feet southeast of Dorinda Road and the boundary line between Zones A-5 and A-3), south to Esperanza Road,
• The median improvements from approximately 450 feet northwest of Via Del Agua to approximately 400 feet south of Via De La Escuela are shared with Zone A-2. ➢ New Zone A-3 Improvements (Installed in connection with Tract 17341) None.

Local Landscaping Improvements (Zone L-2K)
The boundaries of each Local Landscaping Zone are established on the basis of the location, extent and types of improvements or similarities in the types of improvements being maintained through the District assessments as well as the particular and distinct benefits the various developments and properties derive from those improvements based on proximity of those developments and properties to those specific improvements and the nexus between the development of the properties that required or facilitated the installation of those improvements or would have otherwise been necessary for the development of the benefiting properties. While most local landscape improvements are specifically associated with specific developments or development areas, some improvements (most often greenbelts and/or trails) may be located between two or more Zones and/or extend from one Zone to the next and those improvements may reasonably be considered shared improvements. In such cases, the special benefits and

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overall cost of providing such improvements are proportionately shared by parcels in each Zone.

Also, the landscape improvements for various Zones may include various appurtenances such as monuments, fencing, retaining walls, ornamental lighting, signage, and related irrigation, drainage, and electrical equipment. Theses appurtenances are not specifically identified in this Report, but the cost of maintaining such appurtenances is incorporated in the City’s estimated landscape budgets.

The following is a brief description and summary of the landscaped areas within Zone L-2K which provide special benefit to parcels within Zone L-2K including the Annexation Territory. A visual depiction of the current Zone L-2K boundaries and the proposed Annexation Territory as well as the location of the Zone L-2K landscape improvement areas is provided in the Annexation Diagrams in Part V of this Report. The existing properties within Zone L-2K and the Annexation Territory will proportionately share and receive special benefit from the maintenance, servicing, and operation of:
➢ Existing Zone L-2K Improvements
Approximately 612,000 square feet of designated landscape improvement area that incorporates an estimated 2,040 square feet of irrigated median landscaping area; 256,960 square feet of irrigated sloped/mostly-sloped landscaped area; 353,000 square feet of flat/moderately-sloped landscaped area of which 340,140 square feet is irrigated and 12,860 square feet is trails.

The maintenance, servicing, and operation of the above designated square feet of landscape improvement area, which is depicted on the improvement map contained in “Part VAssessment Diagrams” of this Report, includes approximately 280,194 square feet of reduced service level area. Although the reduced service level area may be irrigated, the servicing of these improvements or any other such areas within the Zone may be performed only as needed or deemed necessary by the City.
➢ New Zone L-2K Improvements (Installed in connection with Tract 17341) With the annexation of Tract 17341 and the development of properties therein, approximately 2,045 square feet of decomposed granite trail and approximately 170 linear feet equestrian trail fencing will be added to the existing Local Landscaping Zone L-2K improvements. The trail and fencing are located on the east side of Palo Verde (the entry street access to Tract 17341), just north of Stonehaven Drive. In addition, potential future improvements may also include the approximately 2.1 acres of connecting trail segments that traverse Tract 17341.

Traffic Signal Improvements (Zone TS-2)
Within the District there are three (3) Traffic Signal Zones, designated as TS-1, TS-2 and TS-3, the boundaries of which collectively are intended to be coterminous with the City boundaries.

Each of the three Traffic Signal Zones include traffic signal improvements on the City’s major thoroughfares at specific intersections within the boundaries of each respective Zone that serve as the primary access points to the properties assessed within these Zones. A visual depiction of the current Traffic Signal Zone boundaries including Zone TS-2 and the proposed Annexation Territory is provided in the Annexation Diagrams in Part V of this Report. The following is a listing of the traffic signal locations (intersections) included in Traffic Signal Zone TS-2 which provide special benefit to parcels within Zone TS-2 including the Annexation Territory.

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➢ Existing Zone TS-2 Traffic Signal
The zone comprises the majority of the properties within the City (both the central and western portions of the City) as well as the majority of the City’s traffic signals. The proportional special benefit assessments on parcels within this Zone currently fund in part the ongoing maintenance and operation of the traffic signals located at the following intersections:
• Imperial Highway and Prospect Avenue;
• Imperial Highway and Bastanchury Road;
• Imperial Highway and Valley View Avenue;
• Imperial Highway and Casa Loma Avenue;
• Imperial Highway and Eureka Avenue;
• Imperial Highway and Lemon Drive;
• Imperial Highway and Lemon Drive East;
• Imperial Highway and Olinda Street;
• Imperial Highway and Yorba Linda Boulevard;
• Imperial Highway and Kellogg Drive;
• Yorba Linda Boulevard and Linda Vista Street (cost shared with the City of Placentia); • Yorba Linda Boulevard and Rose Drive (cost shared with the City of Placentia); • Yorba Linda Boulevard and Prospect Avenue (cost shared with the City of Placentia); • Yorba Linda Boulevard and Jefferson Street (cost shared with the City of Placentia); • Yorba Linda Boulevard and Van Buren Street;
• Yorba Linda Boulevard and Richfield Road;
• Yorba Linda Boulevard and Valley View Avenue;
• Yorba Linda Boulevard and Casa Loma Avenue;
• Yorba Linda Boulevard and Casa Loma Circle;
• Yorba Linda Boulevard and Eureka Avenue;
• Yorba Linda Boulevard and Mountain View Avenue;
• Yorba Linda Boulevard and Lakeview Avenue;
• Yorba Linda Boulevard and Avocado Avenue;
• Yorba Linda Boulevard and Ohio Street;
• Yorba Linda Boulevard and Palm Avenue;
• Yorba Linda Boulevard and Kellogg Drive;
• Yorba Linda Boulevard and Fairmont Boulevard;
• Yorba Linda Boulevard and Avenida Rio Del Oro;
• Yorba Linda Boulevard and Village Center Drive;
• Yorba Linda Boulevard and Paseo De Las Palomas;
• Yorba Linda Boulevard and San Antonio Road;
• Yorba Linda Boulevard and Yorba Ranch Road;
• Yorba Linda Boulevard and Via Esquela;
• Yorba Linda Boulevard and Stonehaven Drive;

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• Yorba Linda Boulevard and Avenida Adobe;
• Yorba Linda Boulevard and New River Road;
• Fairmont Boulevard and Paseo De Las Palomas;
• Fairmont Boulevard and Village Center Drive/Nob Hill; • Fairmont Connector and Esperanza Road;
• Fairmont Boulevard and Fairmont Connector;
• Fairmont Boulevard and Old Ranch Road;
• Fairmont Boulevard and Futura Drive;
• Esperanza Road and Lindsey Drive;
• Esperanza Road and New River;
• Lakeview Avenue and Lemon Drive;
• Lakeview Avenue and Town Center Drive;
• Mountain View Avenue and Kellogg Drive;
• Rose Drive and Wabash Avenue;
• Rose Drive School Crossing (at Rose Drive School);
• Rose Drive Pedestrian Crossing (at El Cajon Trail);
• Valley View Avenue and Orange Drive;
• Valley View Avenue and Lakeview Avenue;
• Valley View Avenue and Bastanchury Road;
• Valley View Avenue and Pedestrian Crossing (EL Cajon Trail); • Bastanchury Road and Prospect Avenue;
• Bastanchury Road and Rose Drive;
• Bastanchury Road and Lakeview Avenue;
• Bastanchury Road and Fairmont Boulevard;
• Bastanchury Road and Village Center Drive;
• Bastanchury Road and Secretariat Way;
• Bastanchury Road and Grey Stone Drive;
• Bastanchury Road and Clydesdale Drive;
• Bastanchury Road and Plumosa Drive
• Bastanchury Road and Yorba Linda High School
• Buena Vista Avenue and Richfield Road; and
• Grandview and Kellogg Drive.
➢ New Zone TS-2 Improvements (Installed in connection with Tract 17341) ➢ With the annexation of Tract 17341 and the development of properties therein, a traffic control device will be constructed and installed within Zone TS-2. The traffic signal will be located at the intersection of Via Del Agua and Yorba Linda Boulevard.

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Arterial Street Lighting Improvements
The boundaries of the Arterial Street Lighting Zone are intended to be coterminous with the City boundaries and all parcels within the City receiving a special benefit are proportionately assessed for the net-special benefit costs for the operation and maintenance of these improvements. The following is a summary of the streetlights included in the Arterial Street Lighting Zone:
➢ New Arterial Lighting Improvements (Installed in connection with Tract 17341) None.

A visual depiction of the current Arterial Lighting Zone boundaries and the proposed Annexation Territory is provided in the Annexation Diagrams in Part V of this Report.

Local Street Lighting Improvements
Although the Local Street Lighting Zone is also considered a city-wide zone, only parcels that receive special benefits from local street lighting improvements are proportionately assessed for the net special benefit cost of providing those improvements and are designated as “Local Street Lighting Zone A”. All other parcels in the City (parcels that do not receive special benefits from local street lighting improvements and are not assessed) are designated as “Local Street Lighting Zone B” parcels for administration purposes only (not an actual Zone). The local street lighting within the Annexation Territory is proposed to be provided and maintained by the homeowner’s association established for Tract 17341 and therefore the parcels within the Annexation Territory shall be designated as “Local Street Lighting Zone B” parcels and not assessed through the District for local street lighting improvements.

Type of Light Wattage Total No. of
Lights
Light Emitting Diodes (LED) 31 39
Light Emitting Diodes (LED) 39 75
Light Emitting Diodes (LED) 71 180
Light Emitting Diodes (LED) 82 751
Light Emitting Diodes (LED) 90 3
Light Emitting Diodes (LED) 105 15
Light Emitting Diodes (LED) 136 12
Light Emitting Diodes (LED) 155 4
Total Lights 1,079

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Part II — Method of Apportionment
Legislative Authority and Provisions
1972 Act
The 1972 Act permits the establishment of assessment districts by agencies for the purpose of providing certain public improvements, including the acquisition, construction, installation and servicing of landscape improvements and related facilities. The 1972 Act requires that the cost of these improvements be levied according to benefit rather than assessed value:

Section 22573 defines the net amount to be assessed as follows:
“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.”
Section 22574 provides for zones as follows:
“The diagram and assessment may classify various areas within an assessment district into different zones where, by reason of variations in the nature, location, and extent of the improvements, the various areas will receive differing degrees of benefit from the improvements.

A zone shall consist of all territory which will receive substantially the same degree of benefit from the improvements.”
The formulas used for calculating assessments and the designation of zones herein reflect the composition of parcels within the District and the improvements and activities to be provided, and have been designed to fairly apportion the cost of providing those improvements based on a determination of the proportional special benefits to each parcel, consistent with the requirements of the 1972 Act and the provisions of Proposition 218 and Article XIII D of the California Constitution.

California Constitution
The costs of the proposed improvements addressed in this Report have been identified and allocated to properties within The Annexation Territory based on special benefits as outlined by Article XIII D of the California Constitution. The improvements provided, maintained, and serviced in each Zone and for which properties may be assessed are considered local improvements and related amenities that were installed in connection with the development of the properties and/or would otherwise be necessary or required for the development of properties within each respective Zone including the Annexation Territory. The assessments and method of apportionment is based on the premise that the maintenance of these local improvements and/or property-related services would otherwise not have been required without the development of the parcels within each Zone and these parcels receive a particular and distinct benefit (special benefit) from the ongoing maintenance of such improvements as outlined in Article XIII D of the California Constitution:

Article XIII D Section 2d defines District as follows:
“District means an area determined by an agency to contain all parcels which will receive a special benefit from a proposed public improvement or property-related service”;

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Article XIII D Section 2i defines Special Benefit as follows:
“Special benefit” means a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large. General enhancement of property value does not constitute “special benefit.”
Article XIII D Section 4a defines proportional special benefit assessments as follows:
“An agency which proposes to levy an assessment shall identify all parcels which will have a special benefit conferred upon them and upon which an assessment will be imposed. The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the property related service being provided. No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.” Benefit Analysis
Special Benefits
The ongoing maintenance of landscaped areas within the District provide aesthetic benefits to the properties within each respective Zone and a more pleasant environment to walk, drive, live, and work. The primary function of the landscape improvements and related amenities is to serve as an aesthetically pleasing enhancement and green space for the benefit of the immediately surrounding properties and developments for which the improvements were constructed and installed and/or were facilitated by the development or potential development of properties within the Zones. These improvements are an integral part of the physical environment associated with the parcels in each Zone and while some of these improvements may in part be visible to properties outside the Zone, collectively if these Zone improvements are not properly maintained, it is the parcels within the Zone that would be aesthetically burdened. Additionally, the street landscaping in these Zones serves as both a physical buffer as well as a sound reduction buffer between the roadways and the properties in the District and also serves as a pleasant aesthetic amenity that enhances the approach to the parcels. Likewise, in many of the Zones, the landscaped areas include green space areas (slopes, greenbelts, and trails) that provide a physical buffer and open space between properties and these areas serve as an extension of the physical attributes of the parcels assessed, such as their front or rear yards. These green space areas may also provide a greater opportunity for recreation. As a result, the maintenance of these landscaped improvements provides particular and distinct benefits to the properties and developments within each Zone.

Likewise, street lighting in the District is primarily useful for illuminating the streets that provide access to the properties in the District as well as the sidewalks and parking lanes associated with those properties. While it is recognized that both street lights and traffic signals serve in part to enhance traffic safety, installation and construction of these improvements were clearly required by the development of properties within the district and these improvements provide three main special benefits to those properties: (i) property security benefit, (ii) pedestrian safety benefit, and (iii) parkway/roadway egress benefit. Furthermore, because traffic circulation in the City is largely the result of local traffic to and from these properties by the property owners and guests, it is reasonable to assume that these properties derive a particular and distinct benefit from the street lights and traffic signals that support the safe access to the properties and essentially all pedestrians and parking vehicles in the lit areas will, after dark, be directly associated with the

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assessed properties. As a result, the maintenance of these lighting improvements is a particular and distinct benefit to the properties and developments within each Zone.

General Benefit
General Benefit Within Landscaping Zones
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 were primarily installed in connection with the development of properties in each respective Zone or are improvements that would otherwise be shared by and required for development of properties in those Zones. It is also evident that the maintenance these improvements and the level of maintenance has a direct and particular impact (special benefit) on those properties in proximity to those improvements. Furthermore, this level of maintenance is beyond that which is required to ensure the safety and protection of the general public and property in general, and such maintenance has no quantifiable benefit to the public at large or properties outside each respective Zone.

In the absence of a special funding Zone, the City would typically provide only limited tree management, minimal weed abatement, and as-needed rodent control and erosion control services for the various landscape easement areas. This baseline level of service would typically provide for periodic servicing of the improvement areas (generally twice annually) or on an asneeded basis. This baseline level of service provides for general public safety and essential property protection to avoid negative impacts on adjacent roadways and vehicles traveling on those roadways and potential property damage resulting from slope failures but results in a far less visually pleasing environment than is created with the enhanced levels of services associated with the regular landscape maintenance currently provided in the various District Zones.

Based on service provider cost estimates provided to the City, the cost to provide the baseline level of service for flat/moderately-sloped landscaped areas is currently estimated to be approximately $986 per acre ($0.022629 per square foot) including medians, parkway side panels, greenbelts, trails and/or areas identified natural vegetation or minimal/modified/fallowlandscaped areas; and approximately $1,407 per acre ($0.032299 per square foot) for slope landscaping. These baseline level of service rates are approximately 3.83% greater than the rates applied in the previous fiscal year.

This baseline servicing, unlike the enhanced aesthetic services funded through the District assessments, would provide benefits to the general public and to the properties both within and outside of the specific benefit zones. These costs of providing this baseline service along with a five percent (5%) cost factor for City overhead and administration is treated as the cost of general benefits from landscape maintenance services. Therefore, for flat/moderately-sloped landscaped areas a rate of $0.023760 per square foot ($0.022629 +5%) is applied to calculate the general benefit costs for the assessed improvements and for sloped landscaped areas a rate of $0.033914 per square foot ($0.032299 +5%) is applied to calculate the general benefit costs for the assessed improvements.

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Utilizing the per square foot costs outlined above and the square footages of the improvement areas in each Zone, the following summarizes the estimated general benefit costs calculated for Local Landscaping Zone L-2K and Arterial Landscaping Zone A-3 and the estimated general benefit for the Zone specifically associated with the Annexation Territory:

Fiscal Year 2022/2023 Estimated Zone General Benefit Landscaping Costs

Fiscal Year 2022/2023 Estimated Annexation General Benefit Landscaping Costs

(1) As with most landscape maintenance costs, the General Benefit Costs shown above will be impacted by inflation and in subsequent fiscal years the General Benefit Cost contributions will be adjusted for inflation.

Other Landscaping General Benefits
In addition to the general benefit identified above, it is recognized that there are indirect or incidental general benefits to properties within the District as well as the general public that are associated with regular landscape maintenance services, including:
➢ Minimization of dust and debris; and
➢ Decreased potential water runoff from both properties and the landscaped areas.

Although these types of benefits might best be characterized as indirect consequences of the special benefit of the landscape maintenance provided to parcels served by the District, for the purposes of this Report, these types of benefits are assumed to be general benefits, albeit general benefits that are extremely difficult to quantify. It is estimated that the costs associated with these indirect benefits do not exceed one percent of the annual maintenance expenditures for Local Landscaping Zone improvements. With respect to arterial landscaping improvements, it is recognized that these improvements are not as localized and these indirect or incidental general benefits may extend to properties that are in proximity to those improvements but are outside of the City and District boundaries, such as the unincorporated areas within the City (county islands) and development areas immediately adjacent to the City located primarily on its southern and western borders. Collectively, these areas of development represent an area that is less than ten percent (10%) of the area (square miles) within the City of Yorba Linda. Therefore, the costs associated with these indirect or incidental general benefits have been calculated based on 1.0% of the estimated “Total Annual Maintenance Expenditures” budgeted for each Local Landscaping Zone and 1.1% of the estimated “Total Annual Maintenance Expenditures” budgeted for each Arterial Landscaping Zone. Together with the baseline general benefit costs previously identified, these indirect/incidental general benefit costs are excluded from the potential assessment funding and together are shown in the budgets for each Zone (“Part III - Estimate of Costs” of this Report) as the “General Benefit Expenses (City Funded)”.

General
Benefit Cost
(1) General
Benefit Cost
(1)
Local Zone L-2K $17,150 Arterial Zone A-3 $7,973
Landscape Zone Landscape Zone General
Benefit Cost
(1) General
Benefit Cost
(1)
Local Zone L-2K $2,714 Arterial Zone A-3 $423
Landscape Zone Landscape Zone

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General Benefit Within Lighting Zones
In reviewing the location and extent of the specific lighting improvements (local street lighting, arterial street lighting and traffic signals) to be funded by District assessments and the proximity and relationship to properties to be assessed, like the landscaping improvements, it is evident that these improvements were primarily installed in connection with the development of properties to be assessed, or are improvements that would otherwise be shared by and required for the development of properties to be assessed. It is also evident that the maintenance and servicing of these improvements has a direct and particular impact (special benefit) on those properties in proximity to those improvements and such improvements and maintenance beyond that which is required for traffic circulation to ensure the safety and protection of the general public and property in general, has no measurable benefit to the public at large or properties outside each respective Zone. The following specifically addresses the two lighting zones associated with the Annexation Territory:

Arterial Street Lighting
In regard to street lighting on the arterial streets (Arterial Street Lighting Zone), similar to the local street lights located on the collector streets and development perimeters, it is certainly reasonable to recognize that arterial street lights provide a measure of general benefit to the public and to properties in general resulting from nighttime traffic safety and circulation on these primary streets. The American National Standard Practice for Roadway Lighting and various related traffic and street lighting studies suggest that over seventy-five percent (75%) of the street lights installed on primary streets in urban areas are directly the result of property development (both residential and non-residential development). In turn, these developments increase traffic circulation and ultimately dictate the type of lighting, spacing and number of lights required and without such development, both the need and quantity of those lights would be dramatically reduced. Therefore, based on these estimates, it is reasonable to conclude that no more than twenty-five percent (25%) of the arterial street lights and associated costs to service and maintain those street lights would be considered a general benefit. However, to ensure that no parcel is assessed for more than its proportional special benefit for arterial street lighting, for fiscal year 2022/2023, the City will contribute for general benefit an amount equal to thirty percent (30%) of the combined estimated “Total Annual Maintenance Expenditures” and “Annual Administration Expenses” budgeted for arterial street lighting.

Traffic Signal Lighting
Similar to arterial street lights, traffic signals are located throughout the City on streets and at intersections that provide direct access to each property in the District. However, similar to local lighting improvements within the District, the number and extent of these traffic signals varies in different areas of the City and therefore three Traffic Signal Zones have been established to identify and quantify the proportional special benefit to properties in different parts of the City. Like street lights (both arterial and local), it is certainly reasonable to recognize the general benefit to the public and properties in general associated with nighttime traffic safety and circulation associated with traffic signals. However, as clearly reflected by the need to establish different zones of benefit for these traffic signals, the number of traffic signals, the location of those signals and even the type of signalization is clearly the result of property development and the concentration of that development and thus the special benefit nexus to the properties within each Traffic Signal Zone. However, while these improvements are clearly required by development within the City and respective Zones, traffic signals are inherently installed in part to control traffic,

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not only traffic directly associated with surrounding properties (special benefit) but also general City traffic that is associated with the general public and properties outside each respective Traffic Signal Zone (general benefit). General traffic circulation within the City suggests that location and extent of such improvement is directly correlated to property development and such development increase traffic circulation and ultimately the spacing and number of traffic signals required to ensure proper traffic circulation to and from those properties and the overall need for such public improvements is dramatically reduced in areas with less property development. However, to ensure that no parcel is assessed for more than its proportional special benefit for traffic signal improvements, for fiscal year 2022/2023 the City will contribute for general benefit an amount equal to fifty percent (50%) of the combined estimated “Total Annual Maintenance Expenditures” and “Annual Administration Expenses” budgeted within each Traffic Signal Zone.

Assessment Methodology
To assess benefits equitably it is necessary to calculate each property’s relative share of the special benefits conferred by the funded improvements and service. The Equivalent Benefit Unit (EBU) method of assessment apportionment is utilized in this District and establishes a basic unit (base value) of benefit and then calculates the benefit derived by each assessed parcel as a multiple (or a fraction) of that basic unit. The EBU method of apportioning special benefits is typically seen as the most appropriate and equitable assessment methodology for districts formed under the 1972 Act, as the benefit to each parcel from the improvements are apportioned as a function of comparable property characteristics which may include but is not limited to land use and property size. The method of apportionment originally developed for the Yorba Linda Street Lighting and Landscaping Maintenance District was based on an assessment formula appropriate for the various land uses, identifiable property characteristics and improvements within the District and utilizes the number of comparative dwelling units or dwelling spaces for other residential land uses and comparative lot sizes (acreage) for non-residential and undeveloped properties.

For the purposes of this Engineer's Report, an EBU is the quantum of benefit derived from the various Zone improvements by a single family residential parcel. The single family residential parcel has been selected as the basic unit for calculation of assessments since it represents over 90% of the parcels in the District. Thus, the "benchmark" property (the single family residential parcel) derives one EBU of benefit and is assigned 1.00 Equivalent Benefit Unit.

Land Use Classifications
Every parcel within the District is assigned a land use classification based on available parcel information obtained from the County Assessor’s Office. It has been determined that a parcel use and size are the appropriate factors necessary to identify and calculate the proportional special benefits conveyed to each property within the District and respective Zones for the cost of improvements associated with that property. The following provides an overall description of the various land use classifications assigned to properties in the District and the proportional special benefit (weighted allocation) for those land uses. For reference purposes, the following addresses all land use designations currently applied in the District, however the properties within The Annexation Territory are comprised of properties identified as Planned Residential Development (future Single-Family Residential Parcels), Vacant/Undeveloped Parcels, or Exempt Parcels.

Residential Single-Family Parcels — This classification may include but is not limited to, all subdivided residential tract lots (with or without structures); condominiums; or other single-family residential units on a single parcel. As previously noted, the single family residential parcel has

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been selected as the basic unit for calculation of assessments and each is assigned 1.00 Equivalent Benefit Unit.

Planned Residential Development – This land use is defined as a parcel and/or development (group of parcels) that are not fully subdivided, but based on an Approved Development Map, Final Tract Map or other Approved Development Plan, the specific number of residential singlefamily lots or units has been approved for development, and the improvements and services associated with the development and/or parcel have been accepted or will be accepted by the City for maintenance.

For balloting purposes to establish the property’s maximum assessment and proportional special benefit, these parcels shall be assigned an EBU that reflects the total EBU’s associated with that parcel at build-out (1.0 EBU per residential single-family lot/unit). However, for calculation of the annual assessments each fiscal year, the City and Assessment Engineer shall apply an EBU that reflects the property’s estimated proportional special benefit from exiting improvements and/or portion of the new improvements to be installed and accepted during the upcoming fiscal year. If the parcel is not expected to be subdivided and no new improvements are being accepted for maintenance in the upcoming fiscal year, the Assessment Engineer may assign such parcels a weighted proportional EBU comparable to that assigned to Vacant/Undeveloped parcels. If the parcel is anticipated to be partially or fully subdivided, and/or new improvements associated with the development of the property are anticipated to come online for maintenance during the fiscal year, the Assessment Engineer may assign to such parcels an EBU that reasonably reflects the parcel’s proportional special benefit from the improvements and services provided as compared to other properties in the Zone up to the maximum EBU for which the property was ballot.

Vacant/Undeveloped Parcels — This classification includes properties that are identified as parcels with no development but have development potential. Although it is recognized that the improvements provided within the various Zones of the District were primarily constructed and installed as the result of property development, it is also recognized that the majority of these improvements were constructed in part to support the overall development of properties within the District and/or Zone to their full and best use, including vacant undeveloped properties.

Therefore, when the District was established, it was determined that parcels identified as Vacant/Undeveloped Parcels shall be assigned a proportional EBU that is 25% of the developed non-residential property, or 0.75 EBU per acre, up to a maximum of 5 acres per parcel. (e.g., A

6.00-acre parcel identified as a vacant-rural parcel is assigned 3.75 EBU [5.0 acres’ x 0.75 EBU/acre]).

Exempt Parcels — Exempt from District assessments are the areas of public streets, private streets, and other roadways, dedicated public easements and open spaces, rights-of-ways including public greenbelts and parkways or that portion of public property that is not developed and used for business purposes similar to private commercial, industrial, and institutional activities. (These types of properties are not usually assigned an Assessor’s Parcel Number by the County). Also exempt from assessment are utility rights-of-ways, common areas (such as in condominium complexes), landlocked parcels, small parcels vacated by the County, bifurcated lots, and any other property that cannot be developed. It has been determined that these types of properties receive no direct benefit from the improvements and receive no special benefit or general benefits from the continued operation and maintenance of those improvements.

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* The following Land Use Classifications are not germane to the Annexation Territory but are provided herein for reference purposes only.
* Residential Multi-Family Parcels and Mobile Home Parks — This land use classification identifies properties that are used for residential purposes but contain more than a single residential unit on the parcel (parcels with more than one dwelling). Due in part to the development and population densities associated with these types of dwelling units (reduced unit size compared to the typical density and size of single-family units), Multi-Family Residential Parcels and Mobile Home Parks have been assigned a weighted proportional special benefit factor of 0.8 EBU per Unit and 0.5EBU per space, respectively. Studies have consistently shown that the average apartment unit impacts infrastructure approximately 80% as much as a single-family residence and the average mobile home unit impacts infrastructure approximately 50%. (Sources:

Institute of Transportation Engineers Informational Report Trip Generation, Fifth Edition, 1991; Metcalf and Eddy, Wastewater Engineering Treatment, Disposal, Reuse, Third Edition, 1991).

Therefore, it is reasonable to conclude that the proportional special benefit these properties receive from the public improvements funded by the assessments has a similar proportionality.

Therefore, the EBUs assigned to a multi-residential or a mobile home parcel are calculated based on the number of dwelling units identified for that parcel, with each multi-residential parcel being assigned an EBU equal to 0.8 EBU multiplied by the number of dwelling units on the parcel and each mobile home park parcel being assigned an EBU equal to 0.5 EBU multiplied by the number of mobile home units or available spaces on the parcel. * Non-Residential Parcels — This classification includes developed properties that are identified or zoned for commercial, industrial, or other non-residential use including offices, hotels, recreational facilities (excluding parks and golf courses), and institutional facilities including, hospitals, churches or facilities utilized by other non-profit organizations, whether those facilities are publicly owned (non-taxable) or privately owned. Based on an overall evaluation of development in the City when the District was established, it was determined that the average single-family residential development yielded approximately three (3) dwelling units per acre of land. Thus, it was determined that the special benefit for these non-residential properties compared to a single-family residential parcel is proportional to 3.0 EBU multiplied by the acreage of the parcel. Therefore, the EBU assigned to each non-residential property is 3.0 EBU per acre (e.g., A 2.25-acre parcel identified as non-residential is assigned 6.75 EBU). * Public School Parcels — This classification includes those parcels that are identified specifically as school sites that include playground or recreational areas (both public and private).

Based on an evaluation of the various school sites in the City, it is estimated that on average, 1/3rd (approximately 33.33%) of the total acreage for these parcels is actually developed with structures and parking facilities similar to non-residential developed parcels. The remaining parcel acreage (approximately 66.67%) is generally associated with playground areas and/or sports fields similar to park facilities (e.g., Vacant/Rural/Park Parcels). In recognition of the overall development and use of these properties it has been determined that parcels identified as Schools shall be assigned a proportional EBU that reflects the 1/3rd of the parcel’s acreage being developed non-residential acreage (33.33% of acreage x 3.0 EBU/acre) and 2/3rd of the parcel’s acreage being vacant/rural/park acreage (66.67% of acreage x 0.75 EBU/acre). The average of these two calculations results in an EBU of 1.50 EBU per acre. (e.g., A 12.00-acre school parcel is assigned 18.00 EBU [12.0 acres’ x 1.50 EBU/acre]).

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* Golf Course Parcels — This classification includes all parcels that are identified as all or a portion of a golf course. Such properties, like schools are somewhat unique in that the property use is a combination of developed non-residential and vacant/rural/park use. However, unlike schools, a more significant portion of the acreage for such development would be considered vacant/rural/park. In order to establish a proportional calculation of the special benefits for such properties from the District improvements as compared to other property uses, parcels identified as Golf Course Parcels shall be assigned a proportional EBU of 1.50 EBU per acre (similar to School Parcels), but recognizing that much of the acreage associated with these parcels is vacant/rural/park acreage, the maximum acreage applied in the special benefit calculation shall be limited to a maximum of 5 acres per parcel (APN). (e.g., A 10.00-acre parcel identified as a golf course parcel is assigned 7.50 EBU [5.0 acres’ x 1.50 EBU/acre]).

Special Case Parcels — In many landscaping and lighting districts (particularly districts that have a wide range of land uses and property development) there may be one or more parcels that the standard land use classifications and proportionality identified above do not accurately identify the use and special benefit received from the improvements. Properties that are typically classified as Special Case Parcels usually involve some type of development or land restrictions whether those restrictions are temporary or permanent and affect the properties proportional special benefit. Examples of such restrictions may include situations where only a small percentage of the parcel’s total acreage can actually be developed. In such a case, the net usable acreage of the parcel rather than the gross acreage of the parcel may be applied to calculate the parcel’s proportional special benefit. Each such parcel shall be addressed on a case-by-case basis by the assessment engineer and the EBU assigned to such parcels shall be based on the specific issues related to that parcel and its proportional special benefit compared to other properties that receive special benefits from the improvements.

A summary of the applied Equivalent Benefit Units (EBUs) for the various land use classifications within the District is shown in the following table:
(1) Land Use Classification that are or may be applicable to properties in the Annexation Territory.

Land Use Equivalent Benefit Unit Formula
(1) Residential Single-Family 1.000 EBU per Unit/Lot
Residential Multi-Family 0.800 EBU per Unit
Mobile Home Park 0.500 EBU per Unit/Space
Non-Residential Developed 3.000 EBU per Acre
School (Public/Private) 1.500 EBU per Acre
(1) Planned Residential Development 1.000 EBU per Unit/Lot Park 0.750 EBU per Acre (Maximum of 5 Acres)
Golf Course 1.500 EBU per Acre (Maximum of 5 Acres)
(1) Vacant/Rural (Undeveloped) 0.750 EBU per Acre (Maximum of 5 Acres) Special Case Varied EBU per Adjusted Acreage or Units
(1) Exempt 0.000 EBU per Acre

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Calculation of Assessments
An assessment amount per EBU in each Zone is calculated by:

Taking the “Total Annual Expenses” (Total budgeted costs) and subtracting the “General Benefit Expenses (City Funded)”, to establish the “Total Eligible Special Benefit Expenses”; Total Annual Expenses – General Benefit Expenses = Total Eligible Special Benefit Expenses To the resulting “Eligible Special Benefit Expenses”, various “Funding Adjustments/Contributions” may be applied that may include, but are not limited to:
➢ “Available Ad Valorem Revenues Applied”, represents an adjustment (reduction) in the amount to be collected utilizing ad valorem revenue that may be available for the Zone that was not applied for general benefit expenses.
➢ “Unfunded Reserve Fund Collection”, represents an adjustment (reduction) in the amount to be collected for “Operational Reserve Funding” that was budgeted as part of the Total Annual Expenses.
➢ “Unfunded CIP/Rehabilitation Fund Collection”, represents an adjustment (reduction) in the amount to be collected for “CIP & Rehabilitation Reserve Fund Collection” that was budgeted as part of the Total Annual Expenses.
➢ “Reserve Fund Transfer/Deduction”, represents an amount of available existing funds from the “Operational Reserve Fund Balances” being applied to pay a portion of the Special Benefit Expenses for the fiscal year.
➢ “Additional City Contribution and/or Service Reductions”, represents a further adjustment that addresses the funding gap between the amount budgeted to provide the improvements and services (“Special Benefit Expenses”); and the amount that will be collected through the assessments. This funding gap may be addressed by an additional City contribution, reductions in service and service expenses, or a combination of the two.

These adjustments to the Special Benefit Expenses result in the net special benefit amount to be assessed “Balance to Levy”:

Eligible Special Benefit Expenses +/- Funding Adjustments/Contributions =Balance to Levy The amount identified as the “Balance to Levy” is divided by the total number of EBUs of parcels that benefit to establish the “Assessment Rate” or “Assessment per EBU” for the fiscal year. This Rate is then applied back to each parcel’s individual EBU to calculate the parcel’s proportionate special benefit and assessment for the improvements.

Balance to Levy / Total EBU = Assessment per EBU (Assessment Rate) Assessment per EBU x Parcel EBU = Parcel Assessment Amount

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Annual Inflationary Adjustment (Assessment Range Formula) In fiscal year 1997/1998, in part as a result of Proposition 218, which was approved on the November 1996 statewide ballot and added Article XIII D to the California State Constitution, the City took steps to reorganize the District to more fully reflect the special benefits associated with the District improvements and conducted a protest ballot proceeding for the proposed District assessments. Notices and ballots were mailed to all property owners within the District, outlining the changes to the method of apportionment and the resulting assessment amount proposed for each property and that such assessments would include an annual inflationary adjustment (often referred to as an Assessment Range Formula or escalator) based on the Consumer Price Index (CPI). On July 1, 1997, the ballot results were tabulated with eighty-three percent (83%) of the returned assessment ballots approving the assessment rates and annual inflationary adjustment.

The purpose of establishing an Assessment Range Formula is to provide for reasonable increases and inflationary adjustment that are inevitably associated with providing for the maintenance and operation of landscaping and lighting improvements, thereby reducing the need for additional noticing and balloting procedures simply because of inflationary factors.

The Assessment Range Formula for the Annexation Territory District Zones is defined by the following:

Commencing in fiscal year 1998/1999 and each fiscal year thereafter, the maximum assessment rates established for the improvements in the previous fiscal year for each Zone may be adjusted by the percentage increase of the Local Consumer Price Index (CPI). The Consumer Price Index used for the inflationary adjustment shall be for the Los Angeles-Riverside-Orange County Area for All Urban Consumers, as developed by U.S. Bureau of Labor Statistics. The CPI used shall be as determined by the Bureau of Labor Statistics for a similar period of time.

Each fiscal year the City shall identify the annual percentage change in the CPI, using the difference over a 12-month period between the current year and of the previous year. This annual percentage change is generally established based on the annual percentage change from the prior year, but a similar 12-month time period may be used if more current data is available. This percentage difference shall then establish the range of increase to the maximum assessment rates allowed. If the percentage change in the CPI is negative, the maximum assessment rates shall not be adjusted from the previous fiscal year (unchanged). Should the Bureau of Labor Statistics revise such index or discontinue the preparation of such index, the City may use the revised index or comparable system as approved by the City Council for determining fluctuations in the cost of living.

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Part III — Estimate of Costs
The following outlines provides an estimate of the Annexation Territory’s proportional cost allocation to maintain and service the various landscaping and lighting improvements described in "Part I - Plans and Specifications" of this Report and the resulting assessment rates for each Zone are consistent with the maximum assessment rates approved for fiscal year 2022/2023. In recent fiscal years, the total eligible special benefit expenses identified to ensure adequate and proper servicing and maintenance of the improvements for some Zones have not been fully funded by the assessment revenues generated at the maximum assessment rates, particularly in some of the local landscaping zones. Therefore, although the following estimated costs for the Annexation Territory reflects a proportional estimate of the expenses and funding for the improvements that benefit properties within the Annexation Territory, some of the desired services and activities, particularly those associated with long term repairs, replacements, and rehabilitation, may not be fully funded at the current maximum assessment rates. City staff will ultimately determine which services and activities may be eliminated or reduced to keep the actual costs and expenditures for the fiscal year within the available revenues. To the extent any assessment funds remain after those funds are used to pay the cost of the special benefit in any particular Zone, those monies shall be placed in a reserve account for the respective Zone.

The City annually receives ad valorem funding for lighting and landscaping. These General Fund revenues are used to fund in whole or in part, the General Benefit Expenses and/or Additional City Contributions in specified Zones. For fiscal year 2022/2023, the ad valorem revenues are currently allocated and utilized for Traffic Signals, Arterial Lighting, Local Lighting, Local Landscaping Zones L-4A or L-4B, and any of the nine Arterial Landscaping Zones.

The following budget table identifies the estimated expenses and the resulting “Calculated Assessment Rates per EBU” for the Annexation Territory, and these rates are consistent with the maximum assessment rates approved for each respective Zone in fiscal year 2022/2023.

However, for balloting purposes the “Calculated Assessment Rates per EBU”, (calculated to four decimal places), have been rounded up to the nearest penny to establish the “Proposed Balloted Maximum Assessment Rates per EBU” for fiscal year 2022/2023, which is being presented to the property owners of record within the Annexation Territory in the property owner protest ballot proceeding required pursuant to the provisions of the Constitution.

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Estimated Expenses and Proposed Maximum Assessment Rates * The Balloted Annexation Assessment rate (Proposed Balloted Maximum Assessment Rate per EBU) of $467.62 represents the fiscal year 2022/2023 combined maximum assessment rates for Local Landscaping Zone L-2K, Arterial Landscaping Zone A-3, Arterial Lighting Zone, and Traffic Signals Zone TS-2. All of these rates are subject to the Annual Inflationary Adjustment described in Part II – Method of Apportionment.

Local Arterial Traffic Balloted
BUDGET ITEMS Landscaping Landscaping Arterial Signals Annexation Zone L-2K Zone A-3 Lighting Zone TS-2 Assessment

ANNUAL OPERATING EXPENSES
Annual Maintenance Expenses
Personnel, Maintenance, Operations $ 4,391 $ 659 $ 6 $ 96 $ 5,152 Contractual Services 12,178 2,482 61 440 15,161
Landscape Utilities 12,000 1,340 - - 13,341
Lighting Electrical Service - - 492 310 802
Total Annual Maintenance Expenses $ 28,569 $ 4,481 $ 559 $ 846 $ 34,455 Incidental Operational Expenses
Operational Reserve Funding $ - $ - $ - $ 114 $ 114
Annual Administration Expenses 3,689 660 36 39 4,424
Total Annual Incidental Expenses $ 3,689 $ 660 $ 36 $ 153 $ 4,538 TOTAL ANNUAL EXPENSES $ 32,258 $ 5,141 $ 595 $ 999 $ 38,993 General Benefit Expenses (City Funded) (3,004) (471) (179) (445) (4,099) TOTAL ELIGIBLE SPECIAL BENEFIT EXPENSES $ 29,254 $ 4,670 $ 416 $ 553 $ 34,894

FUNDING ADJUSTMENTS/CONTRIBUTIONS
Available Ad Valorem Revenues Applied $ - $ - $ (292) $ - $ (292) Reserve Fund Transfer/Deduction - - - - -
Total Funding Adjustments / Contributions $ - $ - $ (292) $ - $ (292) BALANCE TO LEVY $ 29,254 $ 4,670 $ 124 $ 553 $ 34,602

DISTRICT STATISTICS
Total Parcels 76 76 76 76 76
Parcels Levied 74 74 74 74 74
Total Benefit Units 74.00 74.00 74.00 74.00 74.00
Calculated Assessment Rates per EBU $395.3305 $63.1107 $1.6739 $7.4778 $467.59 Proposed Balloted Maximum Assessment Rates per EBU $395.34 $63.12 $1.68 $7.48 $467.62 * Total Balloted Assessment Amount N/A N/A N/A N/A $34,603.88

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Part IV — Assessment Roll
The following Assessment Roll incorporates each parcel identified within the Annexation Territory at the time this Report was prepared and the balloted maximum assessment amounts for fiscal year 2022/2023. Each parcel listed on the Assessment Roll is currently shown and illustrated on the County Assessor's Roll and the County Assessor’s Parcel Number Maps (APN maps). These records are, by reference, made part of this Report and shall govern for all details concerning the description of the lots or parcels. All assessments presented on the Assessment Roll are subject to change pending the outcome of the Ballot Proceedings and/or as a result of parcel changes made by the County including parcel splits, parcel merges or development changes that occur prior to the County Assessor's Office securing the final roll and generating tax bills for each fiscal year.

Local Arterial
Landscaping Landscaping Arterial Traffic Signal Total
Zone L-2K Zone A3 Lighting Zone TS-2 Maximum
Balloted Maximum Maximum Maximum Maximum Assessment
APN Land Use Units Acres EBU Assessment Assessment Assessment Assessment Balloted 351-031-18 Exempt - 29.717 - $ - $ - $ - $ - $ -
351-031-19 Exempt - 10.037 - $ - $ - $ - $ - $ -
351-031-20 Planned Residential
Development 64 32.236 64.00 $ 25,301.76 $ 4,039.68 $ 107.52 $ 478.72 $29,927.68 351-031-21 Planned Residential
Development 10 12.771 10.00 $ 3,953.40 $ 631.20 $ 16.80 $ 74.80 $ 4,676.20 Totals 74 84.761 74.00 $ 29,255.16 $ 4,670.88 $ 124.32 $ 553.52 $34,603.88

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Part V — Annexation Diagrams
As of the writing of this Report, excluding the proposed Annexation Territory, the boundaries of the Yorba Linda Street Lighting and Landscaping Maintenance District consists of all lots or parcels of land within the City of Yorba Linda and the boundaries of the District are coterminous with the City boundaries. Upon successful annexation of the Annexation Territory, the District boundaries will once again be coterminous with the City boundaries. The following section contains diagrams that show the proposed Annexation Territory in reference to the Arterial Lighting Zone, the Arterial Landscaping Zone A-3 and the associated landscape improvement areas, the Traffic Signal Zones (specifically Zone TS-2), and Local Landscaping Zone L-2K and the location of the associated landscape improvement areas for which properties within the Annexation Territory are being balloted for new/increased special benefit assessment to support the ongoing annual expenses associated with the maintenance and operation of the improvements proposed to be maintained.

The parcels within the Annexation Territory consist of all lots, parcels and subdivisions of land identified as Tract 17341, known as the Cielo Vista Development as depicted by these diagrams.

The Annexation Territory consists of 84.761 acres of land currently comprised of Assessor Parcel Numbers 351-031-18, 351-031-19, 351-031-20, and 351-031-21 which will be subdivided into seventy-four (74) single-family residential lots and shall ultimately consist and be dictated by the lines and dimensions of those lots, parcels and subdivisions of land shown on the Orange County Assessor’s parcel maps for fiscal year 2022/2023 and by reference the Orange County Assessor’s parcel maps are incorporated herein and made part of this Report.

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Annexation Diagram — Arterial Lighting Zone

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Annexation Diagram — Arterial Landscaping Zone A-3

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Annexation Diagram — Traffic Signal Zone TS-2

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Annexation Diagram — Local Landscaping Zone L-2K

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PUBLIC WORKS DEPARTMENT
DATE: JANUARY 17, 2023
TO: HONORABLE MAYOR AND MEMBERS OF THE COUNCIL
FROM: JAMIE LAI, P.E. DIRECTOR OF PUBLIC WORKS/CITY ENGINEER PREPARED BY: JESSE GUTIERREZ, ASSESSMENT DISTRICT

MANAGER
SUBJECT: APPROVE AWARD OF A CONTRACT SERVICES AGREEMENT TO MERCHANTS LANDSCAPE SERVICES, INC., FOR THE VILLAGE
CENTER DRIVE RESTORATION PROJECT (LI231001) WITHIN LMAD ZONE L-2B AND FIND THAT THE LAKEVIEW AVENUE PARKWAY

PLANTING RESTORATION PROJECT IS CATEGORICALLY EXEMPT

FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA),
CLASS 1, PURSUANT TO CEQA GUIDELINES, SECTION 15301

RECOMMENDATION
It is recommended that the City Council:

1. Approve the Award of a Contract Services Agreement to Merchants Landscape Services, Inc., in the amount of $112,775.52 for the Village Center Drive Restoration Project (Zone L-2B); and

2. Authorize the City Manager to approve additional expenditures up to $16,916.33 (15% of the agreement value) in contract contingencies for potential additional services and unanticipated work that may arise, for a total potential agreement amount not-to-exceed $129,691.85; and

3. Find that the Village Center Drive Restoration Project is categorically exempt from the California Environmental Quality Act (CEQA), Class 1, pursuant to CEQA Guidelines, Section 15301; and

4. Authorize the City Manager to sign and execute the contract services agreement and potential future amendments to the agreement within the designated contingency amount, on behalf of the City Council.

BACKGROUND
The City’s Landscape Maintenance Assessment District (LMAD) division is responsible for the landscape maintenance and improvement of various Local and Arterial Landscape

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APPROVE AWARD OF A CONTRACT SERVICES AGREEMENT TO MERCHANTS LANDSCAPE SERVICES, INC., FOR THE VILLAGE CENTER DRIVE RESTORATION PROJECT (LI231001) WITHIN LMAD ZONE L-2B AND FIND THAT THE LAKEVIEW

AVENUE PARKWAY PLANTING RESTORATION PROJECT IS CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA), CLASS 1, PURSUANT TO CEQA GUIDELINES, SECTION 15301
P a g e | 2
Zones throughout the City. In order to effectively maintain vegetation integrity and aesthetic standards, planting and associated improvement projects are undertaken and overseen by the LMAD group for all Zones. One such large scale planting and improvement project is currently being implemented in Local Landscaping Zone L-2B.

The slope along the East side of Village Center Drive between the two Via Marwah streets was cleared while City Staff developed a planting plan to present to the surrounding residents. The planting palette is made up of climate adapted plant material that when established, can historically survive during periods of water restrictions. City staff made sure to incorporate blooming plants for pockets of color, ornamental grasses and shrubs for texture, and trees to fill the vertical space. City staff also will be using this project to modernize the irrigation in this area to deliver water to each plant utilizing drip irrigation.

LMAD staff solicited a proposal for the design and preparation of plans and specifications for the project from design engineering firms on the City’s On-Call list. BGB Design Group, was awarded a task order in an amount of $11,140 for design of the project in October of 2022 under their On-Call agreement. The completed final design plans and specifications for the project were approved in November of 2022.

The project’s construction level scope of work covers restoration and improvements to landscape parkway areas along Village Center Drive within LMAD Local Landscape Zone L-2B (Attachment 1 – Vicinity Map). The scope of work for the project includes clearing, fine grading, landscape planting, irrigation system and controller installation, 30-day plant establishment period and 60-day project maintenance. The scope requires the contractor to furnish all labor, services, plant materials, equipment, appurtenances, and incidentals necessary to install and complete the work contemplated per the plans and specifications.

DISCUSSION
Following completion of the final landscaping design and in accordance with the City’s Purchasing Policy and State of California’s Public Contract Code, LMAD staff advertised the Project via a formal Invitation for Bids. The City Clerk received and opened six (6) responsive bids for this project on December 20, 2022. Merchants Landscape Services, Inc., the apparent low bidder submitted a bid proposal in the amount of $112,775.52. A summary of the bids is outlined in the below table:

Bidder Bid Amount
Merchants Landscape Svcs., Inc. $112,775.52
Marina Landscape, Inc.. $141,692.36
Nieves Landscape, Inc. $143,310.41

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APPROVE AWARD OF A CONTRACT SERVICES AGREEMENT TO MERCHANTS LANDSCAPE SERVICES, INC., FOR THE VILLAGE CENTER DRIVE RESTORATION PROJECT (LI231001) WITHIN LMAD ZONE L-2B AND FIND THAT THE LAKEVIEW

AVENUE PARKWAY PLANTING RESTORATION PROJECT IS CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA), CLASS 1, PURSUANT TO CEQA GUIDELINES, SECTION 15301
P a g e | 3
Kasa Construction, Inc. $143,656.00
Stay Green, Inc. $187,759.88
Green Giant Landscape, Inc. $190,220.00
The award of the Agreement is Categorically Exempt from the California Environmental Quality Act (CEQA) based upon a Class 1 exemption (Cal. Code Regs., Title 14, Section 15301). The Class 1 exemption consists of the operation, repair, maintenance, permitting, leasing, licensing or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features involving negligible or no expansion of use beyond that existing at the time of the lead agency’s determination. The Project consists of repair, maintenance and minor alterations to existing facilities involving negligible expansion of existing use and therefore qualifies as a Class 1 exemption.

FISCAL IMPACT
The contract costs for this project will be allocated entirely to the Zone Budget for Local Landscape Zone L-2B. Sufficient reserve funding for the proposed contract award and associated project costs are budgeted in the LMAD Capital Improvement Program budget (LI231001) for Fiscal Year 2022/2023. The requisite funding is programmed in account 4010050-461640, therefore no appropriation is required as a result of the recommended action.

ALTERNATIVES
The City Council may choose to not award the proposed Agreement for the Village Center Drive Restoration Project and reject all bids. Staff does not recommend this alternative as it would delay the completion of the needed landscaping improvements. The bid received from Merchant Landscape Services, Inc., is competitive and there is no guarantee that readvertising the project will result in lower bids.

ATTACHMENTS
Attachment 1 – Vicinity Map
Attachment 2 – Merchants Landscape Services, Inc. (Agreement)

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Project Name/No.: Village Center Drive Restoration Contract No.:

Project (LMAD Zone L-2B)
Dept./Contract Rep: PW-LMAD/ J. Gutierrez Approved: 1/17/2023

CITY OF YORBA LINDA

CONTRACT SERVICES AGREEMENT
FOR

VILLAGE CENTER DRIVE RESTORATION PROJECT
(LI231001)
THIS CONTRACT SERVICES AGREEMENT (“Agreement”), is made and effective this 17th day of January, 2023 by and between the CITY OF YORBA LINDA, a California municipal corporation, (“City”) and MERCHANTS LANDSCAPE SERVICES, INC., a Corporation, (“Contractor”). City and Contractor are sometimes hereinafter individually referred to as “Party” and hereinafter collectively referred to as the “Parties”.

R E C I T A L S
A. City requires construction services. Contractor has represented to City that Contractor is qualified to perform said services and has submitted a proposal to City for same.

B. City desires to have Contractor perform said services on the terms and conditions set forth herein.

NOW, THEREFORE, based on the foregoing Recitals and for good and valuable consideration, the receipt and sufficiency of which is acknowledged by both Parties, City and Contractor hereby agree as follows:
1) SERVICES OF CONTRACTOR.

1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, the Contractor shall provide those services specified in the Bid Documents and Plans and Specifications (“Bid Specifications”) attached hereto as Exhibit A and incorporated herein by this reference, which services may be referred to herein as the “Services.” As a material inducement to City entering into this Agreement, Contractor represents and warrants that Contractor is a provider of first-class work and services and Contractor is experienced in performing the Services contemplated herein and, in light of such status and experience, Contractor covenants that it shall follow the highest professional standards in performing the Services required hereunder and that all materials will be of good quality, fit for the purpose intended. For purposes of this Agreement, the phrase “highest professional standards” shall mean those standards of practice recognized by one or more first-class firms performing similar work under similar circumstances.

1.2 Documents Included in Contract. Documents Included in Contract. This contract consists of the Noncollusion Affidavit Certification of Principal, Supplemental Information, General and Special Specifications, plans, drawings, all responsible bidding documents (including but not limited to the bid proposal and corrected bid quantities document), the Notice Inviting Sealed Bids, Instructions to Bidders, this Contract Services Agreement, and all required bonds, insurance policies, endorsements, and certificates, permits, notices, and affidavits, any Addenda or supplemental agreements or change orders issued by City, as well as any and all referenced specifications, details, schedules, appendices, and

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2 attachments, which are incorporated as if fully set forth herein. In the event of an inconsistency, this Agreement shall govern.

1.3 Compliance with Law. Contractor and any subcontractor shall comply with all applicable local, state, and federal laws and regulations applicable to the performance of the work hereunder.

Contractor is aware of the requirements of California Labor Code Sections 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Sections 1600, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on “Public works” and “Maintenance” projects. Ready-mix suppliers and haulers delivering materials to public works projects must also comply with Labor Code Section 1720. Both suppliers and haulers of ready-mix materials will need to register with the Department of Industrial Relations as required under Labor Code Section 1725.5. If the Services are being performed as part of an applicable “Public works” or “Maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is ONE THOUSAND DOLLARS ($1,000) or more, Contractor agrees to fully comply with such Prevailing Wage Laws including, but not limited to, requirements related to the maintenance of payroll records and the employment of apprentices. Contractor will maintain and will require all subcontractors to maintain valid and current California Department of Industrial Relations (“DIR”) Public Works Contractor registration during the term of this Agreement. Contractor shall notify the City in writing immediately, and in no case more than twenty-four (24) hours, after receiving any information that Contractor’s or any of its subcontractor’s DIR registration status has been suspended, revoked, expired, or otherwise changed. It is understood that it is the responsibility of Contractor to determine the correct salary scale.

The State Prevailing Wage Rates may be obtained from the DIR pursuant to California Public Utilities Code, Sections 465, 466, and 467 by calling 415-703-4774. Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification, or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at Contractor’s principal place of business and at the project site, if any. The statutory penalties for failure to pay prevailing wage or to comply with State wage and hour laws will be enforced. Contractor must forfeit to City TWENTY FIVE DOLLARS ($25.00) per day for each worker who works in excess of the minimum working hours when Contractor does not pay overtime. In accordance with the provisions of Labor Code Sections 1810 et seq., eight (8) hours is the legal working day. Contractor also shall comply with State law requirements to maintain payroll records and shall provide for certified records and inspection of records as required by California Labor Code Section 1770 et seq., including Section 1776.

Contractor shall comply with all statutory requirements relating to the employment of apprentices.

Contractor shall defend (with counsel selected by City), indemnify, and hold City, its elected officials, officers, employees, and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It is agreed by the Parties that, in connection with performance of the Services, including, without limitation, any and all “Public Works” (as defined by the Prevailing Wage Laws), Contractor shall bear all risks of payment or non-payment of prevailing wages under California law and/or the implementation of Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law. Contractor acknowledges and agrees that it shall be independently responsible for reviewing the applicable laws and regulations and effectuating compliance with such laws. Contractor shall require the same of all subcontractors.

1.4 Licenses, Permits, Fees and Assessments. Contractor shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the

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3 Services required by this Agreement, including a City of Yorba Linda business license. Contractor and its employees, agents, and subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required for the performance of the Services required by this Agreement. Contractor shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for Contractor’s performance of the Services required by this Agreement, and shall indemnify, defend and hold harmless City, its officers, employees or agents of City, against any such fees, assessments, taxes, penalties or interest levied, assessed, or imposed against City hereunder. Contractor shall be responsible for all subcontractors’ compliance with this Section 1.4.

1.5 Familiarity with Work. By executing this Agreement, Contractor warrants that Contractor (i) has thoroughly investigated and considered the Scope of Services to be performed, (ii) has carefully considered how the Services should be performed, and (iii) fully understands the facilities, difficulties, and restrictions attending performance of the Services under this Agreement. If the Services involve work upon any site, Contractor warrants that Contractor has or will investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of the Services hereunder.

Should Contractor discover any latent or unknown conditions, which will materially affect the performance of the Services hereunder, Contractor shall immediately inform City of such fact and shall not proceed until written instructions are received from the Contract Officer.

1.6 Care of Services. Contractor shall adopt reasonable methods during the life of this Agreement to furnish continuous protection to the Services, and the equipment, materials, papers, documents, plans, studies, and/or other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the Services by City, except such losses or damages as may be caused by City’s own negligence.

1.7 Further Responsibilities of Parties. Both Parties agree to use reasonable care and diligence to perform their respective obligations under this Agreement. Both Parties agree to act in good faith to execute all instruments, prepare all documents, and take all actions as may be reasonably necessary to carry out the purposes of this Agreement. Unless hereafter specified, neither Party shall be responsible for the service of the other. Contractor shall require all subcontractors to comply with the provisions of this agreement.

1.8 Additional Services. City shall have the right at any time during the performance of the Services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Services or make changes by altering, adding to or deducting from said work. No such extra work may be undertaken unless a written change order is first given by the Contract Officer to Contractor, incorporating therein any adjustment in (i) the Contract Sum, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of Contractor. It is expressly understood by Contractor that the provisions of this Section shall not apply to the Services specifically set forth in the Scope of Services or reasonably contemplated therein. Contractor hereby acknowledges that it accepts the risk that the Services to be provided pursuant to the Scope of Services may be more costly or time consuming than Contractor anticipates and that Contractor shall not be entitled to additional compensation therefore.

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4 2. COMPENSATION.

2.1 Contract Sum. For the Services rendered pursuant to this Agreement, the Contractor shall be compensated as specified herein, but not exceeding the maximum contract amount of One Hundred Twelve Thousand Seven Hundred Seventy-Five and 52/100 Dollars ($112,775.52) except as provided in Section 1.8. The Contract Sum shall include the attendance of Contractor at all project meetings reasonably deemed necessary by City; Contractor shall not be entitled to any additional compensation for attending said meetings.

2.2 Progress Payments. Prior to the first day of the month, during the progress of the Services, commencing on the day and month specified in this Agreement, Contractor shall submit to the Contract Officer a complete itemized statement of all labor and materials incorporated into the Services during the preceding month and the portion of the Contract Sum applicable thereto. Upon approval in writing by the Contract Officer, payment shall be made to Contractor from City within thirty (30) days.

City shall pay Contractor a sum based upon ninety-five percent (95%) of the Contract Sum apportionment of the labor and materials incorporated into the Services under this Agreement during the month covered by said statement. The remaining five percent (5%) thereof shall be retained as performance security. Refer to Section 7.4 of this Agreement for retention of funds.

3. PERFORMANCE SCHEDULE.

3.1 Time of Essence. Time is of the essence in the performance of this Agreement. If the work is not completed within forty-five (45) working days, it is understood that the AGENCY will suffer damage.

3.2 Schedule of Performance. Contractor shall commence the Services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all services within forty-five (45) working days. When requested by Contractor, extensions to the time period(s) specified in the Schedule of Performance may be approved in writing by the Contract Officer.

3.3 Force Majeure. The time period(s) specified in the Schedule of Performance for performance of the Services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Contractor, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including City, if Contractor shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the Services for the period of the enforced delay when and if in the judgment of the Contract Officer such delay is justified. The Contract Officer’s determination shall be final and conclusive upon the Parties to this Agreement. In no event shall Contractor be entitled to recover damages against City for any delay in the performance of this Agreement, however caused, Contractor’s sole remedy being extension of this Agreement pursuant to this Section.

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5 3.4 Term. The term of this Agreement shall begin on the date that the contract becomes fully executed and shall end upon project completion as described in the Bid Specifications unless the term of the Agreement is otherwise terminated or extended as provided for at City’s sole discretion to award multiple years. The time provided to Contractor to complete the Services required by this Agreement shall not affect City’s right to terminate the Agreement, as provided in Section 7.9.

4. COORDINATION OF WORK.

4.1 Representative of Contractor. The following principals of Contractor (“Principals”) are hereby designated as being the principals and representatives of Contractor authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith:

Martin Herrera, Branch Manager
______________________________________________
It is expressly understood that the experience, knowledge, capability and reputation of the Principals were a substantial inducement for City to enter into this Agreement. Therefore, the Principals shall be responsible during the term of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the Services hereunder. For purposes of this Agreement, the Principals may not be replaced nor may their responsibilities be substantially reduced by Contractor without the express written approval of City.

4.2 Contract Officer. The “Contract Officer” shall be such person as may be designated by the City Manager of City. It shall be the Contractor’s responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the Services and Contractor shall refer any decisions which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. The Contract Officer shall have authority to sign all documents on behalf of City required hereunder to carry out the terms of this Agreement.

4.3 Prohibition Against Assignment. The experience, knowledge, capability, and reputation of Contractor, its principals, and employees were a substantial inducement for City to enter into this Agreement. Therefore, Contractor shall not contract with any other entity to perform in whole or in part the Services required hereunder in excess of one-half of 1 percent of Contractor’s total bid as to which Contractor’s original bid did not designate a subcontractor in addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated, or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Contractor, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release Contractor or any surety of Contractor of any liability hereunder without the express consent of City.

4.4 Independent Contractor. Neither City nor any of its employees shall have any control over the manner, mode, or means by which Contractor, its agents, or employees, perform the Services required herein, except as otherwise set forth herein. City shall have no voice in the selection, discharge, supervision, or control of Contractor’s employees, servants, representatives, or agents, or in fixing their

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6 number, compensation, or hours of service. Contractor shall perform all Services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Contractor shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Contractor in its business or otherwise or a joint venturer or a member of any joint enterprise with Contractor. Contractor shall not incur or have the power to incur any debt, obligation, or liability whatever against City, or bind City in any manner. Except for the Contract Sum paid to Contractor as provided in this Agreement, City shall not pay salaries, wages, or other compensation to Contractor for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to Contractor for injury or sickness arising out of performing the Services hereunder. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Contractor and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (“PERS”) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits.

4.5 Identity of Persons Performing Work. Contractor represents that it employs or will employ at its own expense all personnel required for the satisfactory performance of any and all of the Services set forth herein. Contractor represents that the Services required herein will be performed by Contractor or under its direct supervision, and that all personnel engaged in such work shall be fully qualified and shall be authorized and permitted under applicable State and local law to perform such tasks and services.

4.6 Utility Relocation. City is responsible for removal, relocation, or protection of existing main or trunkline utilities to the extent such utilities were not identified in the invitation for bids or specifications. City shall reimburse Contractor for any costs incurred in locating, repairing damage not caused by Contractor, and removing or relocating such unidentified utility facilities. Contractor shall not be assessed liquidated damages for delay arising from the removal or relocation of such unidentified utility facilities.

4.7 Trenches or Excavations. Pursuant to California Public Contract Code Section 7104, in the event the work included in this Agreement requires excavations more than four (4) feet in depth, the following shall apply.
(a) Contractor shall promptly, and before the following conditions are disturbed, notify City, in writing, of any: (1) material that Contractor believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law; (2) subsurface or latent physical conditions at the site different from those indicated by information about the site made available to bidders prior to the deadline for submitting bids; or (3) unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Agreement.
(b) City shall promptly investigate the conditions, and if it finds that the conditions do

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7 materially so differ, or do involve hazardous waste, and cause a decrease or increase in Contractor’s cost of, or the time required for, performance of any part of the work shall issue a change order per Section 1.8 of this Agreement.
(c) That, in the event that a dispute arises between City and Contractor whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contractor’s cost of, or time required for, performance of any part of the work, Contractor shall not be excused from any scheduled completion date provided for by this Agreement, but shall proceed with all work to be performed under this Agreement. Contractor shall retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the contracting Parties.

4.8 Safety. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out the Services, Contractor shall at all times be in compliance with all applicable local, state, and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and life saving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.

5. INSURANCE, INDEMNIFICATION AND BONDS.

5.1 Insurance. Contractor shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to City, during the entire term of this Agreement including any extension thereof, the following policies of insurance which shall cover all elected and appointed officers, employees, and agents of City:

Coverage (Check if applicable) Minimum Limits
(X) Comprehensive General Liability Insurance
(including premises and operations)
• Commercial General Liability no less broad
than ISO form CG 0001.
• Coverage must be on a standard Occurrence
form. Claims-made not acceptable. Minimum
limits: ONE MILLION DOLLARS
($1,000,000.00) per occurrence; TWO
MILLION DOLLARS ($2,000,000.00)
General Aggregate; TWO
MILLION DOLLARS ($2,000,000.00)
Products/Completed Operations Aggregate.

General Aggregate must apply separately to
the Services performed under this Agreement.
• Prior written consent is required if the
insurance has a deductible or self-insured
retention in excess of TWENTY-FIVE
THOUSAND DOLLARS ($25,000).

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8 • Coverage shall be continued for one (1) year
after completion of the Services or the
expiration or termination of this Agreement.
• City, its elected and appointed officers,
employees, agents, and authorized
volunteers must be additional insureds for
liability arising out of the Services
performed by or on behalf of Contractor,
including the insured’s general supervision
of Contractor, and liability arising out of
products and ongoing and completed
operations by or on behalf of Contractor.

City, its elected and appointed officers,
employees, agents, and authorized
volunteers shall continue to be an additional
insured for completed operations for two (2)
years after completion of the work or the
expiration or termination of this Agreement.
• The policy definition of “insured contract”
must include assumptions of liability arising
out of both ongoing operations and the
products-completed operations hazard (“f”
definition of insured contract in ISO form CG
0001, or equivalent.
• The insurance provided to City and its officers,
employees, agents, and authorized volunteers
as an additional insured must apply on a
primary and non- contributory basis with
respect to any insurance of self-insurance
program maintained by City.
• Contractor shall provide written notice to City
within ten (10) working days if:
(1) any of the required insurance policies is
terminated; (2) the limits of any of the required
polices are reduced; or (3) the deductible or
self-insured retention is increased. In the event
any of said policies of insurance are cancelled,
Contractor shall, prior to the cancellation date,
submit new evidence of insurance in
conformance with Section 5.1 to the Contract
Officer.
• The policy must cover inter-insured suits and
include a “Separation of Insureds” or
“severability” clause which treats each insured
separately.

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9 Coverage (Check if applicable) Minimum Limits
• The policy shall contain no endorsements or
provisions limiting coverage for (1)
explosion, collapse or underground hazard
(XCU); (2) products and completed
operations; (3) contractual liability; (4)
• third party action over claims; (5) cross
liability exclusion for claims or suits by one
insured against another; or (6) contain any
exclusions contrary to the Contract.
• Required Evidence of Coverage:
o Copy of the additional insured
endorsement or policy language granting
additional insured status.
o Copy of the endorsement or policy
language indicating that coverage
applicable to City is primary and noncontributory; and o Properly completed Certificate of
Insurance.

Coverage (Check if applicable) Minimum Limits
(X) Comprehensive Automobile Liability
Insurance (includes owned, non-owned, and
hired automobile hazards)
• ONE MILLION DOLLARS
($1,000,000.00)
per occurrence combined single limit per
accident.
• Coverage must apply to all owned, hired,
and non-owned vehicles.
• City must qualify as an insured.
• Required Evidence of Coverage:
o Copy of the endorsement or policy
language indicating that City of Yorba
Linda is an insured for its vicarious
liability.
o Properly completed Certificate of
Insurance.

Coverage (Check if applicable) Minimum Limits

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10 (X) Workers’ Compensation/Employers’
Liability Insurance
• Statutory limits as required by the Labor
Code of the State of California, including
Section 3700 of the California Labor
Code.
• Employers Liability Statutory with limits
of ONE

MILLION
DOLLARS ($1,000,000.00) per Accident;

ONE MILLION DOLLARS
($1,000,000.00)
disease per employee; ONE MILLION
DOLLARS ($1,000,000.00) disease per
policy.
• Policy must include a written waiver of the
insurer’s right to subrogate against City.
• Required evidence of coverage:
o Subrogation waiver endorsement.
o Properly completed Certificate of
Insurance.
( ) Builder’s Risk Insurance (for property
constructed on behalf of City)
• Must cover “all risk” of physical loss
providing coverage, including collapse
from design error.
• Value insured shall cover 100% of
completed Agreement cost.
• Policy maintained until full acceptance of
Work.
• Required evidence of coverage:
o Subrogation waiver endorsement.
o Copy of the endorsement of policy
language indicating that coverage
applicable to City is primary and noncontributory; and o Properly completed Certificate of
Insurance.

5.2 General Insurance Requirements
In accordance with Public Code Section 20170, the insurance of surety companies who provide or issue the policy shall have been admitted to do business in the State of California with a credit rating of A- or better.

Insurance policies must be issued by an insurer with an A.M. Best’s rating of at least A:VII.

Contractor shall provide written notice to City within ten (10) working days if:
(1) any of the required insurance policies is terminated; (2) the limits of any of the required polices are reduced; or (3) the deductible or self-insured retention is increased. In the event any of said policies of insurance are cancelled, Contractor shall, prior to the cancellation date, submit new evidence of insurance in conformance with Section 5.1 to the Contract Officer. Any insurance maintained by the City shall apply in excess of and not combined with insurance provided by this policy. City, its officers, employees, representatives, attorneys, and authorized volunteers shall be named as additional named insureds.

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11 No Services under this Agreement shall commence until Contractor has provided City with original endorsements effecting coverage set forth in this Article 5. Such endorsements shall be signed by an authorized representative of the insurance company and shall include the signator’s company affiliation and title. Should it be deemed necessary by City, it shall be Contractor’s responsibility to see that City receives documentation, acceptable to City, which sustains that the individual signing said endorsements is indeed authorized to do so by the insurance company. Current Evidence of Coverage must be provided for the entire required period of insurance. City reserves the right to inspect complete, certified copies of all required insurance policies at any time. Upon written request, certified copies of required insurance policies must be provided within thirty (30) days. Any failure to comply with the reporting or other provisions of the policies including breaches or warranties shall not affect coverage provided to City.

If the Contractor fails to maintain the aforementioned insurance, or secure and maintain the aforementioned endorsement, the City may obtain such insurance, and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement. However, procuring of said insurance by City is an alternative to other remedies City may have, and is not the exclusive remedy for failure of Contractor to maintain said insurance or secure said endorsement. In addition to any other remedies City may have upon Contractor’s failure to provide and maintain any insurance or policy endorsements to the extent and within the time herein required, City shall have the right to order Contractor to stop work hereunder, and/or withhold any payment(s) which became due to Contractor hereunder until Contractor demonstrates compliance with the requirements hereof.

Nothing herein contained shall be construed as limiting in any way the extent to which Contractor may be held responsible for the payment of damages to any persons or property resulting from Contractor’s activities or the activities of any person or persons for which Contractor is otherwise responsible nor shall it limit Contractor’s indemnification liabilities as provided in Section 5.3 The name and address for Additional Insured endorsements, Certificates and Notice of Cancellation is: City of Yorba Linda, 4845 Casa Loma Avenue, Yorba Linda, California, 92886.

Certificate of Insurance must include the following reference:

In the event Contractor subcontracts any portion of the Services in compliance with this Agreement, the contract between Contractor and such subcontractor shall require the subcontractor to maintain the same policies of insurance that Contractor is required to maintain pursuant to Section 5.1, and such certificates and endorsements shall be provided to City.

5.3 Indemnification. To the full extent permitted by law, Contractor agrees to indemnify, defend, and hold harmless City, its officers, employees, agents, and volunteers (“Indemnified Parties”) from and against any and all actions, either judicial, administrative, arbitration, or regulatory, damages to persons or property, losses, costs, penalties, obligations, errors, omissions, or liabilities whether actual or threatened (“Claims or Liabilities”) that may be asserted or claimed by any person, firm, or entity arising out of or in connection with the performance of the Services, operations, or activities provided herein of Contractor, its officers, employees, agents, subcontractors, or invitees, or any individual or entity for which Contractor is legally liable (“Indemnors”), or arising from Contractor’s reckless or willful misconduct, or arising from Contractor’s or Indemnors’ negligent performance of or failure to perform any term, provision, covenant, or condition of this Agreement, and in connection therewith:
(a) Contractor shall defend (with counsel selected by City) any action or actions filed in connection with any of said Claims or Liabilities and will pay all costs and expenses, including legal costs and attorneys’ fees incurred in connection therewith;

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12 (b) Contractor will promptly pay any judgment rendered against City, its officers, agents, or employees for any such Claims or Liabilities arising out of or in connection with the performance of or failure to perform such Services, operations or activities of Contractor hereunder; and Contractor agrees to save and hold City, its officers, agents, and employees harmless therefrom;
(c) In the event City, its officers, agents, or employees is made a party to any action or proceeding filed or prosecuted against Contractor for such damages or other claims arising out of or in connection with the performance of or failure to perform the Services, operation or activities of Contractor hereunder, Contractor agrees to pay to City, its officers, agents, or employees, any and all costs and expenses incurred by City, its officers, agents, or employees in such action or proceeding, including but not limited to, legal costs and attorneys’ fees. (d) Contractor’s duty to defend and indemnify as set out in this Section 5.3 shall include any claims, liabilities, obligations, losses, demands, actions, penalties, suits, costs, expenses or damages or injury to persons or property arising or alleged to arise from, in connection with, as a consequence of or pursuant to any state or federal law or regulation regarding hazardous substances, including but not limited to the Federal Insecticide, Fungicide and Rodenticide Act (“FIFRA”), Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”), Resource Conservation and Recovery Act of 1976 (“RCRA”), the Hazardous and Solid Waste Amendments of 1984, the Hazardous Material Transportation Act, the Toxic Substances control Act, the Clean Air Act, the Clean Water Act, the California Hazardous Substance Account Act, the California Hazardous Waste Control Law or the Porter-Cologne Water Quality Control Act, as any of those statutes may be amended from time to time.

The provisions of this Section do not apply to Claims or Liabilities occurring as a result of City’s sole negligence or willful acts or omissions, but to the fullest extent permitted by law, shall apply to claims and liabilities resulting in part from City’s negligence, except that design professionals’ indemnity hereunder shall be limited to claims and liabilities arising out of the negligence, recklessness, or willful misconduct of the design professional. Contractor’s indemnification obligations pursuant to this Section 5.3 shall be binding on successors and assigns of Contractor and shall survive termination of this Agreement. Contractor shall incorporate similar indemnity agreements with its subcontractors and if it fails to do so Contractor shall be fully responsible to indemnify City, and failure of City to monitor compliance with these provisions shall not be a waiver hereof.

5.4 Labor and Materials and Performance Bonds. Concurrently with execution of this agreement, Contractor shall deliver to City a payment (labor and materials) bond and a performance bond, each in the sum of the amount of this Agreement, in the forms provided by the City Clerk, which secures the faithful performance of this Agreement. The bonds shall contain the original notarized signature of an authorized officer of the surety and affixed thereto shall be a certified and current copy of his power of attorney. The bonds shall be unconditional and remain in force during the entire term of this Agreement and shall be null and void only if Contractor promptly and faithfully performs all terms and conditions of this Agreement.

5.5 Sufficiency of Insurer or Surety. Insurance or bonds required by this Agreement shall be satisfactory only if issued by companies qualified to do business in California, rated “A” or better in the most recent edition of Best Rating Guide, The Key Rating Guide or in the Federal Register, and only if they are of a financial category Class VU or better, unless such requirements are waived by the Risk Manager of City (“Risk Manager”) due to unique circumstances. In the event the Risk Manager determines that the Services to be performed under this Agreement creates an increased risk of loss to City, Contractor agrees that the minimum limits of the insurance policies and the performance bond

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13 required by this Section 5 may be changed accordingly upon receipt of written notice from the Risk Manager; provided that Contractor shall have the right to appeal a determination of increased coverage by the Risk Manager to the City Council of City within ten (10) days of receipt of notice from the Risk Manager.

5.6 Substitution of Securities. Pursuant to Public Contract Code Section 22300, substitution of eligible equivalent securities for any moneys withheld to ensure performance under this Agreement may be permitted at the request and expense of Contractor.

6. RECORDS AND REPORTS.

6.1 Reports. Contractor shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the Services required by this Agreement as the Contract Officer shall require. Contractor hereby acknowledges that City is greatly concerned about the cost of the Services to be performed pursuant to this Agreement. For this reason, Contractor agrees that if Contractor becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the Services contemplated herein or, if Contractor is providing design services, the cost of the project being designed, Contractor shall promptly notify the Contract Officer of said fact, circumstance, technique, or event and the estimated increased or decreased cost related thereto and, if Contractor is providing design services, the estimated increased or decreased cost estimate for the project being designed.

6.2 Records. Contractor shall keep, and require subcontractors to keep, such ledgers books of accounts, invoices, vouchers, canceled checks, reports (including but not limited to payroll reports), studies, or other documents relating to the disbursements charged to City and the Services performed hereunder (the “Books and Records”), as shall be necessary to perform the Services required by this Agreement and enable the Contract Officer to evaluate the performance of such Services. Any and all such Books and Records shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Officer shall have full and free access to such Books and Records at all times during normal business hours of City, including the right to inspect, copy, audit, and make records and transcripts from such Books and Records. Such Books and Records shall be maintained for a period of three (3) years following completion of the Services hereunder, and City shall have access to such Books and Records in the event any audit is required. In the event of dissolution of Contractor’s business, custody of the Books and Records may be given to City, and access shall be provided by Contractor’s successor in interest. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds TEN THOUSAND DOLLARS ($10,000.00), this Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of City, for a period of three (3) years after final payment under this Agreement.

6.3 Ownership of Documents. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents, and other materials plans, drawings, estimates, test data, survey results, models, renderings, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings, digital renderings, or data stored digitally, magnetically, or in any other medium (the “Documents and Materials”) prepared or caused to be prepared by Contractor, its employees, subcontractors, and agents

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14 in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of the Contract Officer or upon the expiration or termination of this Agreement, and Contractor shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the Documents and Materials hereunder. Any use, reuse or assignment of such completed Documents and Materials for other projects and/or use of uncompleted documents without specific written authorization by Contractor will be at City’s sole risk and without liability to Contractor, and Contractor’s guarantee and warranties shall not extend to such use, revise, or assignment. Contractor may retain copies of such Documents and Materials for its own use. Contractor shall have an unrestricted right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any Documents and Materials prepared by them, and in the event Contractor fails to secure such assignment, Contractor shall indemnify City for all damages resulting therefrom.

6.4 Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, rights of reproduction, and other intellectual property embodied in the Documents and Materials. Contractor shall require all subcontractors to agree in writing that City is granted a non-exclusive and perpetual license for the Documents and Materials the subcontractor prepares under this Agreement. Contractor represents and warrants that Contractor has the legal right to license any and all of the Documents and Materials.

Contractor makes no such representation and warranty in regard to the Documents and Materials which were prepared by design professionals other than Contractor or provided to Contractor by City. City shall not be limited in any way in its use of the Documents and Materials at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk.

7. ENFORCEMENT OF AGREEMENT.

7.1 California Law. This Agreement shall be interpreted, construed, and governed both as to validity and to performance of the Parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim, or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Orange, State of California, or any other appropriate court in such county, and Contractor covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, in Santa Ana.

7.2 Disputes. In the event either Party fails to perform its obligations hereunder, the nondefaulting Party shall provide the defaulting Party written notice of such default. The defaulting Party shall have ten (10) days to cure the default; provided that, if the default is not reasonably susceptible to being cured within said ten (10) day period, the defaulting Party shall have a reasonable time to cure the default, not to exceed a maximum of thirty (30) days, so long as the defaulting Party commences to cure such default within ten (10) days of service of such notice and diligently prosecutes the cure to completion; provided further that if the default is an immediate danger to the health, safety, and general welfare, the defaulting Party shall take such immediate action as may be necessary. Notwithstanding the foregoing, the nondefaulting Party may, in its sole and absolute discretion, grant a longer cure period.

Should the defaulting Party fail to cure the default within the time period provided in this Section, the nondefaulting Party shall have the right, in addition to any other rights the nondefaulting Party may have at law or in equity, to terminate this Agreement. Compliance with the provisions of this Section 7.2 shall

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15 be a condition precedent to bringing any legal action, and such compliance shall not be a waiver of any Party’s right to take legal action in the event that the dispute is not cured. During the period of time that Contractor is in default, City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. In the alternative, City may, in its sole discretion, elect to pay some or all of the outstanding invoices during the period of default.

7.3 Claims. Notwithstanding Article 1.5 (commencing with Section 20104) of Chapter 1 of Part 3, Section 9204 of the Public Contract Code shall apply to any claim by the Contractor in connection with the Project.
(a) Upon receipt of a claim pursuant to Section 9204 of the Public Contract Code, the City will conduct a reasonable review of the claim and, within a period not to exceed 45 Days, provide the Contractor a written statement identifying what portion of the claim is disputed and what portion is undisputed. Upon receipt of a claim, the Contractor and the City may, by mutual agreement, extend the aforementioned time period.
(b) The Contractor shall furnish reasonable documentation to support the claim. (c) If City Council approval is needed to provide the Contractor a written statement identifying the disputed portion and the undisputed portion of the claim, and the City Council does not meet within the 45 Days or within the mutually agreed to extension of time following receipt of a claim sent by registered mail or certified mail, return receipt requested, the City will have up to 3 Days following the next duly publicly noticed meeting of the City Council after the 45-Day period, or extension, expires to provide the Contractor a written statement identifying the disputed portion and the undisputed portion.
(d) Any payment due on an undisputed portion of the claim will be processed and made within 60 Days after the City issues its written statement. If the City fails to issue a written statement, paragraph (i) shall apply.
(e) If the Contractor disputes the City’s written response, or if the City fails to respond to a claim issued pursuant to Section 9204 within the time prescribed, the Contractor may demand in writing an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand in writing sent by registered mail or certified mail, return receipt requested, the City will schedule a meet and confer conference within 30 Days for settlement of the dispute. (f) Within 10 business days following the conclusion of the meet and confer conference, if the claim or any portion of the claim remains in dispute, the City will provide the Contractor a written statement identifying the portion of the claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the claim will be processed and made within 60 Days after the City issues its written statement. Any disputed portion of the claim, as identified by the Contractor in writing, shall be submitted to nonbinding mediation, with the City and the Contractor sharing the associated costs equally. The City and the Contractor shall mutually agree to a mediator within 10 business days after the disputed portion of the claim has been identified in writing. If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with regard to the disputed portion of the claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator. If mediation is unsuccessful, the parts of the claim remaining in dispute shall be subject to applicable procedures outside those established in Section 9204.
(g) Mediation may include any nonbinding process, including, but not limited to, neutral

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16 evaluation or a dispute review board, in which an independent third party or board assists the parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in Section 9204. (h) Unless otherwise agreed to by the City and the Contractor in writing, the mediation conducted pursuant to Section 9204 shall excuse any further obligation under Section 20104.4 to mediate after litigation has been commenced.
(i) Failure by the City to respond to a claim from the Contractor within the time periods described in this subdivision or to otherwise meet the time requirements of Section 9204 shall result in the claim being deemed rejected in its entirety. (j) Amounts not paid in a timely manner as required by Section 9204 will bear interest at 7 percent per annum.
(k) If a Subcontractor or a lower tier Subcontractor lacks legal standing to assert a claim against the City because privity of the Contract does not exist, the Contractor may present to the City a claim on behalf of a Subcontractor or lower tier Subcontractor. A Subcontractor may request in writing, either on its own behalf or on behalf of a lower tier Subcontractor, that the Contractor present a claim for work which was performed by the Subcontractor or by a lower tier Subcontractor on behalf of the Subcontractor. The Subcontractor requesting that the claim be presented to the City shall furnish reasonable documentation to support the claim. Within 45 Days of receipt of this written request, the Contractor shall notify the Subcontractor in writing as to whether the Contractor presented the claim to the City and, if the original Contractor did not present the claim, provide the Subcontractor with a statement of the reasons for not having done so.
(l) A waiver of the rights granted by Section 9204 is void and contrary to public policy, provided, however, that (1) upon receipt of a claim, the Contractor and the City may mutually agree to waive, in writing, mediation and proceed directly to the commencement of a civil action or binding arbitration, as applicable; and (2) the City may prescribe reasonable change order, claim, and dispute resolution procedures and requirements in addition to the provisions of Section 9204, so long as the contractual provisions do not conflict with or otherwise impair the timeframes and procedures set forth in Section 9204.

7.4 Retention of Funds. Progress payments shall be made in accordance with the provisions of Section 2.2 of this agreement. In accordance with said section, City shall pay Contractor a sum based upon ninety-five percent (95%) of the Contract Sum apportionment of the labor and materials incorporated into the Services under this Agreement during the month covered by said statement. The remaining five percent (5%) thereof shall be retained as performance security to be paid to Contractor within sixty (60) days after final acceptance of the Services by the City Council of City, after Contractor has furnished City with a full release of all undisputed payments under this Agreement, if required by City. In the event there are any claims specifically excluded by Contractor from the operation of the release, City may retain proceeds (per Public Contract Code § 7107) of up to one hundred fifty percent (150%) of the amount in dispute. City’s failure to deduct or withhold shall not affect Contractor’s obligations hereunder.

7.5 Waiver. No delay or omission in the exercise of any right or remedy by a nondefaulting Party on any default shall impair such right or remedy or be construed as a waiver. A Party’s consent to or approval of any act by the other Party requiring the Party’s consent or approval shall not be deemed to waive or render unnecessary the other Party’s consent to or approval of any subsequent act. Any waiver by either Party of any default must be in writing and shall not be a waiver of any other default

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17 concerning the same or any other provision of this Agreement.

7.6 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party.

7.7 Legal Action. In addition to any other rights or remedies, either Party may take legal action, in law or in equity, to cure, correct, or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement.

7.8 Liquidated Damages. Since the determination of actual damages for any delay in performance of this Agreement would be extremely difficult or impractical to determine in the event of a breach of this Agreement, Contractor and its sureties shall be liable for and shall pay to City the sum of EIGHT HUNDRED AND FIFTH DOLLARS ($850.00) as liquidated damages for each working day of delay in the performance of any of the Services required hereunder, as specified in the Schedule of Performance. In addition, liquidated damages may be assessed for failure to comply with the emergency call out requirements described in the Scope of Services. City may withhold from any moneys payable on account of the Services performed by Contractor any accrued liquidated damages.

7.9 Termination for Default of Contractor. If termination is due to the failure of Contractor to fulfill its obligations under this Agreement, Contractor shall vacate any City-owned property which Contractor is permitted to occupy hereunder and City may, after compliance with the provisions of Section 7.2, take over the Services and prosecute the same to completion by contract or otherwise, and the Contractor shall be liable to the extent that the total cost for completion of the Services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to the Contractor for the purpose of setoff or partial payment of the amounts owed the City as previously stated.

7.10 Attorneys’ Fees. If either Party to this Agreement is required to initiate or defend or made a Party to any action or proceeding in any way connected with this Agreement, the prevailing Party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorneys’ fees; provided, however, that the attorneys’ fees awarded pursuant to this Section shall not exceed the hourly rate paid by City for legal services multiplied by the reasonable number of hours spent by the prevailing Party in the conduct of the litigation. Attorneys’ fees shall include attorneys’ fees on any appeal, and in addition a Party entitled to attorneys’ fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery, and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment. The court may set such fees in the same action or in a separate action brought for that purpose.

8. CITY OFFICERS AND EMPLOYEES, NONDISCRIMINATION.

8.1 Non-liability of City Officers and Employees. No officer, official, employee, agent,

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18 representative, or volunteer of City shall be personally liable to Contractor, or any successor in interest, in the event of any default or breach by City or for any amount which may become due to Contractor or to its successor, or for breach of any obligation of the terms of this Agreement.

8.2 Conflict of Interest. Contractor covenants that neither it, nor any officer or principal of it, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Contractor’s performance of the Services under this Agreement. Contractor further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent, or subcontractor without the express written consent of the Contract Officer. Contractor agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement.

No officer or employee of City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to this Agreement which effects his financial interest or the financial interest of any corporation, partnership or association in which he is, directly or indirectly, interested, in violation of any State statute or regulation. Contractor warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement.

8.3 Covenant Against Discrimination. Contractor covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of any impermissible classification including, but not limited to, race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry in the performance of this Agreement. Contractor shall take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry.

9. MISCELLANEOUS PROVISIONS.

9.1 Notice. Any notice, demand, request, document, consent, approval, or communication either Party desires or is required to give to the other Party or any other person shall be in writing and shall be deemed to be given when served personally or deposited in the US Mail, prepaid, first- class mail, return receipt requested, addressed as follows:

To City: City of Yorba Linda
4845 Casa Loma Avenue Yorba
Linda, California 92886
Attention: Director of Public Works/City Engineer
To Contractor: Merchants Landscape Services, Inc.
1510 S. Lyon Street
Santa Ana, CA 92705
Attn: Mark Bower, President
Either Party may change its address by notifying the other Party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy-two (72) hours from the time of mailing if mailed as provided in this Section.

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19 9.2 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.

9.3 Article and Section Headings and Subheadings. The article and section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement.

9.4 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument.

9.5 Integration; Amendment. This Agreement including the attachments hereto is the entire, complete, and exclusive expression of the understanding of the Parties. It is understood that there are no oral agreements between the Parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements, and understandings, if any, between the Parties, and none shall be used to interpret this Agreement. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by Contractor and by the City Council of City. The Parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void.

9.6 Severability. In the event that any one or more of the articles, phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable, such invalidity or unenforceability shall not affect any of the remaining articles, phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the Parties hereunder unless the invalid provision is so material that its invalidity deprives either Party of the basic benefit of their bargain or renders this Agreement meaningless.

9.7 Unfair Business Practices Claims. In entering into this Agreement, Contractor offers and agrees to assign to City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. § 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials related to this Agreement. This assignment shall be made and become effective at the time City renders final payment to Contractor without further acknowledgment of the Parties.

9.8 Invoicing. Contractor shall submit invoices monthly during the term of this Agreement, based on the cost for the Services performed and reimbursable costs incurred prior to the invoice date.

Invoices shall be submitted to:

City of Yorba Linda
4845 Casa Loma Avenue
Yorba Linda, California 92886 Attention:

Jesse Gutierrez, Assessment District Manager

9.9 No Third Party Beneficiaries. With the exception of the specific provisions set forth in this Agreement, there are no intended third-party beneficiaries under this Agreement and no such other third parties shall have any rights or obligations hereunder.

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20 9.10 Execution of Contract. The persons executing this Agreement on behalf of each of the Parties hereto represent and warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) that entering into this Agreement does not violate any provision of any other Agreement to which said Party is bound.

This Agreement shall be binding upon the heirs, executors, administrators, successors, and assigns of the Parties.
[SIGNATURES ON FOLLOWING PAGE]

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21 IN WITNESS WHEREOF, the Parties have executed and entered into this Agreement as of the date first written above.

CITY OF YORBA LINDA
Dated: By:

MARK A. PULONE

CITY MANAGER
ATTEST:

CONTRACTOR:

Marcia Brown MERCHANTS LANDSCAPE SERVICES, INC.

City Clerk
By: ________________________________

Signature: ________________________________
Title: ________________________________

Address: ________________________________
________________________________
________________________ By: ________________________________ Dianna Honeywell
Finance Director Signature: ________________________________

Title: ________________________________

Address: ________________________________
________________________________

APPROVED AS TO FORM:

RUTAN & TUCKER LLP
Todd Litfin
City Attorney
Two signatures are required if a corporation.

NOTE: CONTRACTOR’S SIGNATURES SHALL BE DULY NOTARIZED, AND APPROPRIATE

ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONTRACTOR’S BUSINESS ENTITY.

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COMMUNITY DEVELOPMENT DEPARTMENT
DATE: JANUARY 17, 2023
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: DAVID BRANTLEY, AICP

DIRECTOR OF COMMUNITY DEVELOPMENT
PREPARED BY: JIM SOWERS, CBO
SUBJECT: DEMOLITION PERMIT REQUEST FOR 17846 ANNA MARIE ROAD

RECOMMENDATION
It is recommended that City Council approve the demolition permit request for 17846 Anna Marie Road.

BACKGROUND
On December 20, 2022, the City received a request from Peter Frazier on behalf of Paul and Rhonda Hernandez, property owners, to demolish an existing single-family dwelling located at 17846 Anna Marie Road.
 The existing structure is a one-story, wood framed, single-family home on a concrete foundation, with a stucco and wood exterior and a flat built-up asphalt roof with wood encased eave soffits. The home is located on a 0.98-acre lot within the RE (Residential Estate) zone. The approximate living area is 3,700 s.f. with a 400 s.f. carport. The applicant is proposing to demolish the existing home and carport and remove the existing foundation to construct a new 6,000 s.f. two-story home. The new home will have 4 bedrooms, 4.5 baths, and two separate garages, totaling 1,000 s.f. The proposed home and garage will have stucco siding with wood accents and a standing seam metal roof and reflect a contemporary farmhouse style.  This property currently is serviced by Yorba Linda Water District, Southern California Edison, and Southern California Gas.

A review of this demolition permit request by City Council is required per City Council Policy P-4.

ANALYSIS
The existing residence was constructed in 1959 and is a one-story, 3,700 s.f., 1950’s era contemporary home with a 400 s.f. attached carport. Staff has concluded that, due to its relative recent construction, the home was not included in the 2010 City Wide Historic

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DEMOLITION PERMIT REQUEST FOR 17846 ANNA MARIE ROAD
P a g e | 2
Resources Survey, nor does it appear to display any historical significance. Architecturally, the home reflects a typical 1950’s era contemporary design that is common to many areas in the city. Moreover, the home is not known to be associated with any events or persons significant to Yorba Linda’s past that might render it potentially eligible for historic designation.

Additionally, the applicant will be required to obtain an asbestos survey prior to permit issuance. If the findings are positive, appropriate abatement measures will be required, and the South Coast Air Quality Management District will be notified.

Finally, the applicant shall be advised to employ Best Management Practices (BMP’s) to control fugitive dust and ensure water quality during the demolition and construction activities in accordance with the State of California requirements.

FISCAL IMPACT
None

ALTERNATIVES
The alternative would be for the City Council to deny the demolition request.

ATTACHMENTS

1. Applicant Demolition Request Letter

2. Site Aerial Photograph

3. Front Elevation Photograph

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December 20,2022
City of Yorba Linda
Building Department
Subject: Home Demolition - 17846 Anna Marie Road
To Whom it May Concern:

We are seeking to demolish our existing approximately 3,700 sguare foot single family residence, pool and driveway located at L7846 Anna Marie Road to build a new, approximately 6,000 square foot single family residence, pool, garage, and driveway.

Our home is located on an approximately 43,000 square foot lot located in the general vicinity of Lakeview Avenue and Buena Vista. Our neighborhood is made up of large lots and single-family homes with equestrian zoning.

The details of the demolition are as follows
¡ The existing single-family dwelling to be demolished is a wood framed structure with a slab on grade concrete foundation, stucco and wood exterior, and three-ply built-up asphalt roofing. o Eightv linear feet of retaining wall.
r Seven hundred square foot pool.
. 3,547 square feet of driveway.
. t,822 square feet of pool deck.
¡ All plant material shall be removed except for trees at east and west property lines.

Thank you for your consideration and please direct any questions to our building designer and project manager, Peter Frazie r, at 951-970-8078.

Thank you for your consideration.

Peter Frazier on behalf of
Paul and Rhonda Hernandez
DEC 2 a 2022
/1tt*

EG EIUE
By

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fre4/f Page 292 of 318 at Pb¿Pg'<e þ Fa D€røoLu#¿a
ORDINANCE NO. 2022-1105

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF YORBA LINDA AMENDING CHAPTER 15.60 OF THE

YORBA LINDA MUNICIPAL CODE PERTAINING TO

ELECTRIC VEHICLE CHARGING STATIONS
WHEREAS, the City of Yorba Linda seeks to implement Government Code sections 65850.7 and 65850.71 to meet the goals set by the State of California pertaining to electric vehicle charging stations; and
WHEREAS, an expedited, streamlined permitting process for electric vehicle charging stations facilitates the convenient charging of electric vehicles; and WHEREAS, the City of Yorba Linda desires to adopt this Ordinance to amend Chapter 15.60 of the City’s Municipal Code pertaining to electric vehicle charging stations.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF YORBA LINDA DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. The findings and determinations reflected in the Recitals above are true and correct and are incorporated herein by this reference.

SECTION 2. Chapter 15.60 of the Yorba Linda Municipal Code is hereby amended to read in its entirety as follows:

Section 15.60.010 Title and Purpose
This Chapter 15.60 of the Yorba Linda Municipal Code shall be known as the “City of Yorba Linda Electric Vehicle Charging Permit Expediting Ordinance”, and may be cited as such and referred to herein as “this Chapter”. The purpose of this Chapter is to promote the use of electric vehicles by creating an expedited, streamlined permitting process for electric vehicle charging stations while promoting public health and safety and preventing specific adverse impacts in the installation and use of such electric vehicle charging stations.

Section 15.60.020 Definitions
The definitions contained in this Section shall govern the construction, meaning and application of the words and phrases used in this Chapter. Words or phrases used in this Chapter that are not specifically defined in this Chapter shall interpreted by the Building Official to give them the meaning that results in the most reasonable application of this Chapter.

Application Checklist: The checklist found on the City’s website containing the information which an electric vehicle charging station (EVCS) application must contain

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ORDINANCE NO. 2022-1105
PAGE NO. 2
to be considered complete and eligible for expedited, streamlined approval pursuant to this Chapter.

Building Official: The City of Yorba Chief Building Official or his or her designee.

City: The City of Yorba Linda.

Electrical Vehicle Charging Station (“EVCS”) or Charging Station: Shall mean any level of electric vehicle supply equipment station that is designated and built-in compliance with Article 625, of the California Electrical Code, as it reads on the effective date of this Section and updated by the corresponding California Electrical Code and by ordinance and delivers electricity from a source outside an electric vehicle into a plug-in electric vehicle. Where applicable, a “charging station” may include essential signage, parking lot striping, wheel stops, bollards and other similar directional and safety improvements as necessary for safe operation of the EVCS equipment.

Electronic submittal: The utilization of the City’s web-based application and document submittal platform.

EVCS application: An application for a building permit or similar non-discretionary permit to install, replace or otherwise alter an EVCS.

Specific adverse impact: The meaning set forth in California Government Code Section 65850.7(i)(4), as may be amended from time to time.

Section 15.60.030 Applicability and Requirements
This Chapter applies to the permitting of all EVCS in the City. EVCS legally established or permitted prior to the effective date of the ordinance codified in this Chapter are not subject to the requirements of this Chapter unless physical alterations are undertaken that materially affect the size, type, location, or components of an EVCS in such a way as to require a new building permit or similar non-discretionary permit.

Routine maintenance and repair, including like-for-like replacement of individual components of an EVCS, shall not be considered a material alteration requiring a new building permit or similar non-discretionary permit.

The provisions of this Chapter shall not be deemed to nullify any provisions of local, state, or federal law. EVCS installed, replaced, or otherwise altered pursuant to this Chapter shall comply with all applicable federal, state, and local health and safety standards and requirements, including but not limited to Title 15 of the Yorba Linda Municipal Code. EVCS shall also meet all applicable safety and performance standards established by the Society of Automotive Engineers, the National Electrical Manufacturers Association, and accredited testing laboratories such as Underwriters Laboratories, and, where applicable, rules of the Public Utilities Commission regarding safety and reliability.

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ORDINANCE NO. 2022-1105
PAGE NO. 3
Section 15.60.040 Administration
The Building Official is authorized to administer the provisions of this Chapter.

The Building Official shall have the approval authority for all EVCS applications.

Section 15.60.050 Expedited Permit Application and Review A. Submittal. Every EVCS application shall be submitted to the City either in person or by electronic submittal and shall contain the information set forth in the application checklist.

B. Determination of completeness of EVCS application. Following the City’s receipt of an EVCS application, the Building Official shall determine whether the EVCS application is complete.
1) An EVCS application shall be deemed complete if the Building Official determines that the EVCS application satisfies the information requirements of the application checklist.
2) If the Building Official determines that an EVCS application does not satisfy the information requirements of the Application Checklist, the EVCS application shall be deemed incomplete. EVCS applications deemed incomplete shall be returned to the applicant along with a written correction notice detailing all deficiencies in the EVCS application and any additional information or documentation required to be eligible for expedited, streamlined approval pursuant to this Chapter.

C.Administrative review.
1) EVCS applications deemed complete shall be administratively reviewed by the Building Official. The Building Official’s review shall be limited to whether EVCS applications meet all health and safety requirements of local, state, and federal law. The applicable requirements of local law shall be limited to those standards and regulations necessary to ensure that the EVCS will not have a specific, adverse impact upon the public health or safety. The Building Official’s review of EVCS applications shall not be subject to approval of any associations, as defined in Section 4080 of the Civil Code.
2) Except as otherwise provided in this Chapter, the Building Official shall administratively approve EVCS applications deemed complete which meet all of the following requirements:
a) The EVCS application is consistent with this Chapter; and

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ORDINANCE NO. 2022-1105
PAGE NO. 4
b) The EVCS application meets all health and safety requirements of local, state, and federal law as provided in Subsection 1 above; and c) The Building Official does not make a finding of a specific, adverse impact upon the public health or safety, as detailed in Subsection 3 below.
3) The Building Official shall not be required to administratively approve EVCS applications deemed complete in either of the following situations, and may instead require a conditional use permit, or deny EVCS applications as provided herein:
a) The Building Official may, in consultation with the City's Community Development Director, require a conditional use permit for an EVCS application if the Building Official makes a finding, based on substantial evidence, that the EVCS could have a specific, adverse impact upon the public health or safety. Any conditions imposed on a permit to install an EVCS shall be designed to mitigate the specific, adverse impact upon the public health or safety at the lowest cost possible.
b) The Building Official may deny an EVCS application if the Building Official makes a finding, based on substantial evidence in the record that the proposed installation would have a specific, adverse impact upon the public health or safety, and there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. 4) Appeal. An EVCS applicant may appeal any decision of the Building Official made pursuant to this Chapter to the Planning Commission. The timing of and requirements for an appeal shall be as outlined in Yorba Linda Municipal Code section 18.36.810.
5) Electronic signatures. Electronic signatures may be used in lieu of wet signatures on all forms, applications, and other documentation required by this Chapter.

Section 15.60.060 Time Limitations
The following time limitations shall apply on all applications and plan reviews for EVCS.

A. An application to install an EVCS submitted to the Building Official shall be deemed complete if, after the applicable time period noted in subsection 3 below has elapsed, both of the following in subsections 1 and 2 are true:

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ORDINANCE NO. 2022-1105
PAGE NO. 5
1) The Building Official has not deemed the application complete consistent with the Application Checklist provided by the City per Government Code section 65850.7(g).
2) The Building Official has not issued a written correction notice detailing all deficiencies in the application and identifying any additional information explicitly necessary for the Building Official to complete a review limited to whether the EVCS meets all the health and safety requirements of local, state and federal law, consistent with Government Code section 65850.7(b) and (g).
3) Time Limitations.
a) Five (5) business days after submission for 1 to 25 EVCS. b) Ten (10) business days after submission for more than 25 EVCS.

B. An application to install an EVCS shall be deemed approved if the applicable time period noted in subsection 3 below has elapsed and both of the following in subsections 1 and 2 are true:
1) The Building Official has not administratively approved the application pursuant Government Code section 65850.7(b).
2) The Building Official has not made a finding, based on substantial evidence, that the EVCS could have a specific impact on public health or safety or required the applicant to apply for a use permit pursuant to Government Code section 65850.7(b).
3) Time Limitations:
a) Twenty (20) business days after the application was deemed complete for 1 to 25 EVCS
b) Forty (40) business days after the application was deemed complete for 25 or more EVCS.

SECTION 3. CEQA
In adopting this Ordinance, the City Council finds that this Ordinance is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Title 14 California Code of Regulations Sections 15060(c)(3), 15061 (b)(3) and 15378, in that it can be seen with certainty that the Municipal Code amendments propose no activity that may have a significant effect on the environment and will not cause a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.

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ORDINANCE NO. 2022-1105
PAGE NO. 6
SECTION 4. Severability
If any section, subsection, sentence, clause, phase, or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each section, subsection, subdivision, sentence, clause, phrase or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases or portions might subsequently be declared invalid or unconstitutional.

SECTION 5. This Chapter supersedes and replaces Chapter 15.60 of the Yorba Linda Municipal Code in its entirety.

SECTION 6. Effective Date.

This Ordinance shall take effect thirty days after its adoption. The City Clerk shall certify to the adoption of this Ordinance and shall cause this ordinance or a summary thereof to be published in the manner required by law.

PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Yorba Linda on this _____ day of __________, 20__. ___________________________
MAYOR

CITY OF YORBA LINDA
ATTEST:
_____________________________

MARCIA BROWN, CITY CLERK

CITY OF YORBA LINDA

APPROVED AS TO FORM

RUTAN & TUCKER LLP

CITY ATTORNEY

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ORDINANCE NO. 2022-1105
PAGE NO. 7

STATE OF CALIFORNIA )
ss.

COUNTY OF ORANGE )
I, Marcia Brown, City Clerk of the City of Yorba Linda, California, DO HEREBY CERTIFY that the foregoing Ordinance was adopted at a regular meeting of the City Council of the City of Yorba Linda held on the ____ day of ________, 20__, and was carried by the following roll call vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
___________________________________

MARCIA BROWN, CITY CLERK

CITY OF YORBA LINDA

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ADMINISTRATION DEPARTMENT
DATE: JANUARY 17, 2023
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: MARK A. PULONE, CITY MANAGER
PREPARED BY: MARK K. AALDERS, ASSISTANT TO THE CITY

MANAGER
SUBJECT: DENIAL OF CLAIMS FOR DAMAGES

RECOMMENDATION
It is recommended that the City Council of the City of Yorba Linda deny the claims for damages by Arthur Boing and Kyle Wong.

BACKGROUND
Claims for damages filed against the City are reviewed and investigated by City staff and a third-party claims administrator with the George Hills Company. George Hills Company specializes in claims management and risk management services. These services are provided through the City’s contract membership in the California Insurance Pool Authority.

Staff makes recommendations to the Council for settlement or denial based on the investigatory findings. A claimant’s failure to provide evidence of and/or supporting documents to substantiate the claim for damages will also result in a recommendation for denial of the claim.

DISCUSSION
The following claims for damages have been recommended for denial based on the investigations by City staff and the third-party claims administrator. Further details for each claim are available upon request.

Arthur Boing
The claimant alleges that while walking northbound on Lakeview Avenue (south of Altrudy Way) that he sprained his ankle when attempting to navigate a driveway approach which leads down to a private underground parking garage. The claimant notes that it was dark (approximately 8:20pm) and the nearby streetlight was blocked by a private property tree.

Staff performed a site visit, reviewed documents pertaining to the driveway approach and determined the following:

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DENIAL OF CLAIMS FOR DAMAGES
P a g e | 2
 This is a driveway approach to the subterranean garage for the Lakeview Office Park at 4676 Lakeview Avenue.
 It was constructed in the late 1980’s or early 1990’s and has been in this condition since its original installation.
 There was no existing “dangerous condition” in the design of the driveway approach or sidewalk.
 A pedestrian should be able to reasonably navigate the driveway approach safely.

Therefore, the third-party claims administrator and City staff recommend denying the claim.

Kyle Wong
The claimant is filing for statutory damages under the Unruh Civil Code 51 and lack of compliance with The Americans with Disability Act (ADA) for allegedly being unable to pass on a sidewalk due to unmaintained pavement issues and cracks at 19153 Yorba Linda Boulevard. The third-party administrator, City Attorney and City staff reviewed information pertaining to the case and recommend denying the claim.

FISCAL IMPACT
None

ALTERNATIVES
As an alternative to staff’s recommendations for the claims, the City Council has the following options:

1. Accept liability for the claims and pay the amount specified in the claim forms.

2. Grant settlement authority up to a certain amount and direct the claims adjuster to enter into settlement negotiations with the claimants.

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CITY OF YORBA LINDA

PLANNING COMMISSION

AGENDA ITEM SUMMARY
Meeting Date: January 11, 2023
Community Development Department
Planning Division
Director
David Brantley, AICP
APPROVAL OF NOVEMBER 9, 2022, PLANNIING COMMISSION MEETING MINUTES A motion by Commissioner Bernstein, Second by Commissioner Singh to approve the November 9, 2022, Planning Commission meeting minutes as mailed. The motion carried (4-0-1-0) with the following roll call vote:

AYES: Masterson, Pease, Bernstein, Singh
NOES: None
ABSENT: Darnell
ABSTAIN: None
CONDITIONAL USE PERMIT 2022-51 CHUNG
A motion by Commissioner Bernstein, Second by Commissioner Masterson to continue Conditional Use Permit 2022-51 Chung to a date certain of January 25, 2023. The motion carried (4-0-1-0) with the following roll call vote:

AYES: Masterson, Pease, Bernstein, Singh
NOES: None
ABSENT: Darnell
ABSTAIN: None
DESIGN REVIEW 2022-12 AND ACCESSORY DWELLING UNIT 2022-34 ALVARADO A minute motion by Chair Pro Tem Pease, Second by Commissioner Masterson to approve Design Review 2022-12 and Accessory Dwelling Unit 2022-34 Alvarado with conditions. The motion carried (4-0-1-0) with the following roll call vote:

AYES: Masterson, Pease, Bernstein, Singh
NOES: None
ABSENT: Darnell
ABSTAIN: None
A REQUEST TO INITIATE AN AMENDMENT TO CHAPTER 18.20 OF THE YORBA LINDA ZONING

CODE TO MODIFY REGULATIONS FOR ACCESSORY DWELLING UNITS A motion by Commissioner Bernstein, Second by Commissioner Masterson adopting Resolution No. 5538 initiating an amendment to Chapter 18.20 of the Yorba Linda Zoning Code to modify regulations for Accessory Dwelling Units. The motion carried (4-0-1-0) with the following roll call vote:

AYES: Masterson, Pease, Bernstein, Singh
NOES: None
ABSENT: Darnell
ABSTAIN: None Page 302 of 318
2 Adjournment: The meeting adjourned at 7:04 p.m. to the January 25, 2023, Planning Commission meeting at 6:30 p.m.

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CITY CLERK'S OFFICE
DATE: JANUARY 17, 2023
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: MARCIA BROWN, CMC, CITY CLERK
SUBJECT: COUNCIL COMMITTEE AND AGENCY REPORTS

RECOMMENDATION
It is recommended that the City Council receive and file this report.

DISCUSSION
City Council members serve on a number of outside committees and agencies. Attached are updates received recently from these agencies.

ATTACHMENTS

1. Reports from City Council Organizations, Agencies and Committees

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Laboratory Report, January 19, 2023 Attachment No. 2
Carpet Beetles
Changlu Wang, Extension Specialist in Entomology and George Hamilton, Extension Specialist in Pest Management, Rutgers University Updated: March 2019
Photo credits: Clemson University, USDA Cooperative Extension Slide Serie Identification
The black carpet beetle (Attagenus unicolor (Brahm)) is the most common carpet beetle species (Figure 2). It is small, black, oval, and 1/8 to 3/16 inch (3–5 mm) long. The larva is carrot-shaped, golden to dark brown and up to ½ inch (13 mm) long. It has a tail of long hairs, which is a distinguishing characteristic of this species.

The varied carpet beetle (Anthrenus verbasci (L)), furniture carpet beetle (Anthrenus flavipes LeConte), and common carpet beetle (Anthrenus scrophularia (L)) are similar in their appearance and habits (Figures 3–5).

The adults are typically 1/12 to 1/8 inch (2–3 mm) long and have a round body. The body has an irregular arrangement of mixed white, brownish, black, orange, or yellowish scales. The mature larva is about 1/5 inch (5 mm) long and is much shorter than the black carpet beetle. It has dense bristles and hairs at the sides and end of the body. In the varied carpet beetle, the head end is narrower than the tail end, a characteristic that distinguishes it from black carpet beetle larva.

Habits and Food
Adult carpet beetles live both outside and inside homes. Outdoors, they are found on the blossoms of crape myrtle, spiraea, Queen Anne's lace, buckwheat, daisies, wild asters, and other flowering plants with abundant pollen. Larvae feed on animal-produced debris and are often associated with animal nests. Indoors, larvae feed on a wide variety of materials. Their food include carpets, woolens, furs, stuffed animals, leather book bindings, feathers, horns, hair, silk, dead insects, dead spiders, pet food, and nests of birds, bees, and wasps.

Plant products such as seeds, grain, and cereals may also be infested by carpet beetles.

Adult beetles are mostly seen in spring on flowers. They crawl or fly into dwellings through vents, windows, doors, and eaves. Carpet beetle adults are attracted to light. They are often found around windows. Adult females lay eggs on lint around baseboards, carpet edges, cracks, in ducts of hot-air furnace systems, on mouse carcasses, or in similar situations. An adult female carpet beetle lays about 40-90 eggs that hatch into tiny larvae in one to two weeks. A larva molts 8-17 times before turning into a pupa. The larval stage may be as short as 70 days and as long as more than one year, depending on the species, temperature, and food availability. Full-grown larvae change into pupae, and adults emerge after about two weeks. The adult beetles seldom live more than four weeks.

Carpet beetle larvae stay hidden in materials in which they feed. Carpet beetle infestations differ from clothes moth infestations in that the damage usually occurs in a large area or a portion of the garment or carpet rather than scattered in different areas. Carpet beetle larvae leave shed skins. They do not produce webbing as webbing clothes moths do.

Prevention and Control

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Laboratory Report, January 19, 2023 Attachment No. 2
Carpet beetles are often difficult to eliminate because of their ability to live in obscure places and disperse widely within a structure. Successful control relies on integrating sanitation, exclusion, non-chemical, and chemical control methods.

Exclusion
Keeping doors and windows tightly sealed will help minimize invasion of adult beetles. Eliminating flowering plants and shrubs immediately around the building will reduce pest pressure from outside. Check for the presence of beetles before bringing in cut flowers. Proper storage is most important in preventing damage from fabric pests. Valuable furs and other items of animal origin should be placed in cold storage or airtight garment bags. Before storing the articles, carefully examine them to make sure they are clean and pest-free. A tight chest or cabinet is not adequate for protecting woolens for long periods of time. Placing naphthalene or paradichlorobenzene (PDB) in a storage unit will prevent damage from fabric pests. These products should not be placed in direct contact with the articles. PDB can damage plexiglas®, many resins and furniture finishes, buttons, and ornaments on clothing.

Non-Chemical Control Methods
Inspection
The first step in the control of carpet beetles is to find the source of infestation. Dark storage rooms, lint-laden corners, heat ducts and cold-air return ducts, attics, basements, areas under slip covers on furniture, back sides of furniture, and seldom-used sofas in darkened corners all need to be inspected. Placing sticky traps around windows during the spring will catch adult varied carpet beetles trying to enter or escape to the outdoors. Food-baited sticky traps can be placed around the perimeter and corners of floors to monitor the activity of the carpet beetle larvae.

Dry Cleaning and Hot Laundering
Garments can be dry cleaned or hot laundered to kill all fabric pests.

Freezing
Non-washable items can be wrapped inside a plastic bag and placed in a household freezer for two weeks.

After the treatment, the objects should be allowed to return to room temperature within the sealed plastic bag to prevent condensation damage.

Sanitation
Lint should be removed from cracks and crevices in floors and around baseboards. Frequent washing (or shampooing) and vacuum cleaning of all rugs and carpets will help. Discard the vacuum bag immediately after vacuuming to prevent vacuumed carpet beetles escaping from the bag. Remove bird, rodent, bee, and wasp nests and old spider webs outside the structure. These nests may harbor carpet beetles.

Chemical Control Methods
Dichlorvos (DDVP) impreganated resin strips (such as Nuvan® Prostrips, Vapona®) are available for repelling and controlling fabric pests. Vapona® strips can be used to treat museum display cases, storage closets, attics, storerooms, and other enclosed areas that are not regularly occupied by persons. When using them, be careful not to let them contact the article to be treated and select the right size according to the size of the space being treated. In occupied homes, Nuvan® Prostrips can be used in closets, wardrobes, cabinets, and attics. Dichlorvos is slowly released from the strip and when high enough concentrations are reached, it will kill any pests hiding on the treated articles. Closets are not airtight and are opened too frequently to hold enough vapors to kill insects. A trunk, chest, box, or garment bag makes a good storage container for killing existing fabric pests with DDVP resin strips. The strips must be replaced every four months.

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Laboratory Report, January 19, 2023 Attachment No. 2
Insecticide Dusts or Sprays
Areas that cannot be cleaned may need to be treated with an insecticide dust or sprays. Find a product that lists carpet beetles on its label. Diatomaceous earth dust is less toxic to humans than some other pesticides.

The following active ingredients (not a complete list) are suitable for carpet beetle control: bifenthrin, betacyfluthrin, lambda-cyhalothrin, and permethrin. Apply insecticides as spot treatments or limit sprays to edges of floor coverings, under rugs and furniture, floors and walls of closets, shelving where susceptible fabrics are stored, cracks and crevices, and other lint accumulating areas. It is not recommended to apply insecticides on fabrics. The ability of the insects to crawl while in the larval stage reduces the effectiveness of insecticide treatments in multi-unit dwellings.

Fumigation
When infestations are severe, or where access to all sources of pest activity is limited, chemical fumigation may be the best method. The services of a pest control operator are usually needed to conduct a fumigation.

Treatment with a fumigant is the surest way to penetrate numerous layers of fabrics or rolled rugs and destroys all fabric pests in infested materials. Fumigation can be completed inside of fumigation chambers, trailers, shipping containers, and fumigation bubbles; or by tarping the structure. Sulfuryl flurodie (Vikane®) and phospine are suitable for treating many articles.

An alternative and inexpensive fumigation method is to use dry ice. This is useful for fumigating stuffed animals, pillows, some furniture, etc. Thick airtight plastic bags can be used for dry ice fumigation. For each 42-gallon heavy duty garbage bag (3 mil), place 3 pounds (1,350 g) dry ice pellets near the bottom or center of the bag. Seal the bag with a string. Dry ice will evaporate into carbon dioxide within a few hours (a process called sublimation). Carbon dioxide is heavier than air and as the dry ice sublimates, air in the bag will be pushed out. As long as the bag is tightly sealed with string, the air inside the bag will contain a very high concentration of carbon dioxide for at least 2–3 days, which are adequate for killing any fabric pests. A 48-hour fumigation at around 70°F is sufficient for killing any fabric pests. Longer time will be required for lower temperatures. Wear gloves when handling dry ice. Conduct the treatment in a vented place to avoid accumulation of high carbon dioxide in the room.

Ineffective Treatments
Aerosol bombs have little value in controlling carpet beetles. The fog has very poor penetrating qualities, thereby preventing the insecticide from reaching the larvae in their hiding places.

Cedar chests are of little use in controlling fabric pests. The volatile oil from red cedar is not an effective repellent. Furthermore, studies show that after cedar chests are 36 months old, volatile essential oils in the wood are absent.

Reference
Bruesch, J. 2010. Chapter 10 - Fabric & museum pests. pp. 681–734. In A. Mallis. Mallis Handbook of pest control. 10th edition. Mallis Handbook, LLC.

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JANUARY 17, 2023 CITY COUNCIL MEETING
CONSENT CALENDAR ITEM NO. 15 – COUNCIL COMMITTEE AND AGENCY

REPORTS

ADDITIONAL MATERIAL RECEIVED AFTER POSTING OF AGENDA

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Transportation Corridor Agencies
For the January 12, 2023, Meeting

BOARD MEETING HIGHLIGHTS

F/ETCA BOARD OF DIRECTORS
John Taylor, Chair,

SAN JUAN CAPISTRANO
Patricia Kelley, Vice Chair,

MISSION VIEJO
Ashleigh Aitken,

ANAHEIM
Joseph Muller,

DANA POINT
Farrah Khan,
IRVINE
Scott Voigts,

LAKE FOREST
Denis Bilodeau,
ORANGE
Anthony Beall,

RANCHO SANTA MARGARITA
David Penaloza,

SANTA ANA
Austin Lumbard,
TUSTIN
Beth Haney,

YORBA LINDA
Donald P. Wagner,
COUNTY OF ORANGE, 3RD DIST.

Doug Chaffee,
COUNTY OF ORANGE, 4TH DIST.

Katrina Foley,
COUNTY OF ORANGE, 5TH DIST.

Ryan Chamberlain, Ex-Officio
Member, CALTRANS DIST. 12

SJHTCA BOARD OF DIRECTORS
Will O’Neill, Chair,

NEWPORT BEACH
Janine Heft, Vice Chair,

LAGUNA HILLS
Richard Hurt,

ALISO VIEJO
Arlis Reynolds,

COSTA MESA
Richard Viczorek,

DANA POINT
Farrah Khan,
IRVINE
Stephanie Oddo,

LAGUNA NIGUEL
Cynthia Conners,

LAGUNA WOODS
Patricia Kelley,

MISSION VIEJO
John Taylor,

SAN JUAN CAPISTRANO
David Penaloza,

SANTA ANA
Donald P. Wagner,
COUNTY OF ORANGE, 3RD DIST.

Katrina Foley,
COUNTY OF ORANGE, 5TH DIST.

Ryan Chamberlain, Ex-Officio
Member, CALTRANS DIST. 12
73/133/241/261 TOLL ROADS
BOARDS SELECT 2023 CHAIRS AND VICE CHAIRS, WELCOME FIVE NEW

BOARD MEMBERS
The San Joaquin Hills (SJHTCA) and Foothill/Eastern Transportation Corridor Agency (F/ETCA) Boards of Directors held leadership elections for the current calendar year. The SJHTCA Board of Directors unanimously reelected Newport Beach Mayor Pro Tem Will O’Neill as Chair and Laguna Hills Mayor Janine Heft as Vice Chair. The F/ETCA Board of Directors unanimously elected San Juan Capistrano Councilmember John Taylor as Chair and Mission Viejo Mayor Pro Tem Trish Kelley as Vice Chair.

Chair O’Neill joined the SJHTCA Board of Directors in 2019 and was elected Chair in 2022. He was elected to the Newport Beach City Council in 2016 and re-elected in 2020, when he was chosen by his peers on the City Council to serve as Mayor of Newport Beach.

Chair Taylor joined the F/ETCA Board of Directors in 2020. He was elected to the San Juan Capistrano City Council in 2018 and won another four-year term in 2022. His peers on the City Council chose Chair Taylor to serve as Mayor in 2021.

During the meeting, both Boards welcomed five new Directors:

San Joaquin Hills Transportation Corridor Agency: Katrina Foley, Orange County Supervisor, 5th District (Foley also serves on the F/ETCA Board); and Stephanie Oddo, Laguna Niguel City Councilmember.

Foothill/Eastern Transportation Corridor Agency: Ashleigh Aitken, Anaheim Mayor; Denis Bilodeau, Orange City Councilmember; and Beth Haney, Yorba Linda City Councilmember.

TCA’s two Boards of Directors boast six mayors and two mayors pro tem.

BOARDS APPROVE OPEN MARKET BOND BUYBACK PROGRAM
The F/ETCA and SJHTCA Boards of Directors approved an open market bond buyback program as an enhancement to their Early Bond Paydown Program.

The initiative calls for using unrestricted cash to purchase and retire F/ETCA and SJHTCA bonds that investors have publicly offered to sell, as well as reaching out to limited investors who may want to sell their bonds.

The program will allow the Agencies to purchase bonds at attractive prices, as well as pay off those bonds prior to the call date, realizing immediate savings.

The Boards approved a resolution authorizing the Chief Financial Officer the ability to execute purchases and retirements of bonds within specified savings parameters for a cumulative not-to-exceed amount of $100 million per Agency. Staff will provide quarterly results on the progress of the program.

SJHTCA Vice Chair

JANINE HEFT
Laguna Hills
SJHTCA Chair

WILL O'NEILL
Newport Beach
F/ETCA Chair

JOHN TAYLOR
San Juan Capistrano
F/ETCA Vice Chair

TRISH KELLEY
Mission Viejo

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FINANCE DEPARTMENT
DATE: JANUARY 17, 2023
TO: HONORABLE MAYOR AND MEMBER OF THE CITY COUNCIL
FROM: DIANNA HONEYWELL, FINANCE DIRECTOR / CITY TREASURER SUBJECT: FISCAL YEAR 2022/23 FIRST QUARTER BUDGET UPDATE

RECOMMENDATION
It is recommended that the City Council receive and file the attached list of line-item budget transfers and supplemental budget appropriations for the first quarter of FY 2022/23 (Attachment 1), as required by City Council Policy F-4 – Supplemental Budget and LineItem Transfers.

BACKGROUND
On June 15, 2021, the City Council adopted the Two-Year Budget for fiscal years 2021/22 and 2022/23. On June 21, 2022, the FY 2022/23 budget was updated for Mid-Term adjustments. From time to time, the City’s operating and capital improvement budgets require modification. These modifications included refinement in estimated costs and events that were unanticipated when the budget was adopted. Subsequent budget adjustments and transfers for the first quarter of FY 2022/23 have been identified and recorded. This update is to inform Council of these adjustments.

DISCUSSION
The following table includes original revenue and expenditure estimates included in the adopted Mid-Term budget for FY 2022/23 and the latest projection as of September 30, 2022. Because the first quarter only reflects three months of actual activity, the updates, as would be anticipated are typically minimal. No significant changes are currently projected.

The budget adjustments column reflects budget adjustments already approved by the City Council or City Manager during the first three months of the fiscal year. A list of these adjustments is reflected in Attachment 1.

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Yorba Linda City CouncilJanuary 17, 2023

Yorba Linda City Council
January 17, 2023