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HomeMy WebLinkAbout2023/07/19 - Regular City Council Meeting PacketCITY COUNCIL VISION STATEMENT “Our Vision is to create an equitable, sustainable, and vibrant city, rich in opportunity for all to thrive by building on our foundation and success as a world class community.” Page 1 Mayor L. Dennis Michael Mayor Pro Tem Lynne B. Kennedy Members of the City Council: Ryan A. Hutchison Kristine D. Scott Ashley Stickler CITY OF RANCHO CUCAMONGA REGULAR MEETING AGENDA July 19, 2023 10500 Civic Center Drive Rancho Cucamonga, CA 91730 FIRE PROTECTION DISTRICT BOARD – CITY COUNCIL HOUSING SUCCESSOR AGENCY- SUCCESSOR AGENCY – PUBLIC FINANCE AUTHORITY CLOSED SESSION REGULAR MEETINGS TAPIA CONFERENCE ROOM COUNCIL CHAMBERS 4:30 P.M. 7:00 P.M. The City Council meets regularly on the first and third Wednesday of the month at 7:00 p.m. in the Council Chambers located at 10500 Civic Center Drive. It is the Intent to conclude the meeting by 10:00 p.m. unless extended by the concurrence of the City Council. Agendas, minutes, and recordings of meetings can be found at https://www.cityofrc.us/your-government/city-council-agendas or by contacting the City Clerk's Office at 909-774- 2023. Live Broadcast available on Channel 3 (RCTV-3). For City Council Rules of Decorum refer to Resolution No. 2023-086. Any documents distributed to a majority of the City Council regarding any item on this agenda after distribution of the agenda packet will be made available in the City Clerk Services Department during normal business hours at City Hall located at 10500 Civic Center Drive, Rancho Cucamonga, CA 91730. In addition, such documents will be posted on the City’s website at https://www.cityofrc.us/your-government/city-council-agendas. CLOSED SESSION – 4:30 P.M. TAPIA CONFERENCE ROOM ROLL CALL: Mayor Michael Mayor Pro Tem Kennedy Council Members Hutchison, Scott and Stickler A.ANNOUNCEMENT OF CLOSED SESSION ITEM(S) B.PUBLIC COMMUNICATIONS ON CLOSED SESSION ITEM(S) C.CITY MANAGER ANNOUNCEMENTS Page 1 of 715 CITY COUNCIL VISION STATEMENT “Our Vision is to create an equitable, sustainable, and vibrant city, rich in opportunity for all to thrive by building on our foundation and success as a world class community.” Page 2 D.CONDUCT OF CLOSED SESSION D1. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PER GOVERNMENT CODE SECTION 54956.8 FOR PROPERTY LOCATED AT 8408 ROCHESTER AVENUE, RANCHO CUCAMONGA, CA 91730 (RANCHO CUCAMONGA EPICENTER STADIUM); AGENCY NEGOTIATORS: JOHN GILLISON AND ELISA COX, REPRESENTING THE CITY OF RANCHO CUCAMONGA; NEGOTIATING PARTY: RANCHO BASEBALL LLC; REGARDING PRICE AND TERMS OF PAYMENT. (CITY) D2. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(A); INLAND REAL ESTATE GROUP, LLC, ET AL V. CITY OF RANCHO CUCAMONGA; U.S. DISTRICT COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA, CASE NO. 5:21-CV-01656-SP; NINTH CIRCUIT COURT OF APPEALS CASE NO. No. 22-55435. (CITY) D3. CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION PURSUANT TO PARAGRAPH(1) OF SUBDIVISION (D) OF SECTION 54956.9; NAME OF CASE: PEPE'S INC. V. CITY OF RANCHO CUCAMONGA, UNITED STATES DISTRICT COURT, CENTRAL DISTRICT OF CALIFORNIA, CASE NO. 5:20CV02506JGBSP (CITY) E.RECESS Page 2 of 715 CITY COUNCIL VISION STATEMENT “Our Vision is to create an equitable, sustainable, and vibrant city, rich in opportunity for all to thrive by building on our foundation and success as a world class community.” Page 3 REGULAR MEETING – 7:00 P.M. COUNCIL CHAMBERS PLEDGE OF ALLEGIANCE ROLL CALL: Mayor Michael Mayor Pro Tem Kennedy Council Members Hutchison, Scott and Stickler A.AMENDMENTS TO THE AGENDA B.ANNOUNCEMENT / PRESENTATIONS C.PUBLIC COMMUNICATIONS This is the time and place for the general public to address the Fire Protection District, Housing Successor Agency, Successor Agency, Public Financing Authority Board, and City Council on any item listed or not listed on the agenda. State law prohibits us from addressing any issue not on the Agenda. Testimony may be received and referred to staff or scheduled for a future meeting. Comments are to be limited to three (3) minutes per individual. All communications are to be addressed directly to the Fire Board, Agencies, Successor Agency, Authority Board, or City Council not to the members of the audience. This is a professional business meeting and courtesy and decorum are expected. Please refrain from any debate between audience and speaker, disorderly or boisterous conduct that disturbs, disrupts, or otherwise impedes the orderly conduct of the meeting. For more information, refer to the City Council Rules of Decorum and Order (Resolution No. 2023-086) located in the back of the Council Chambers. The public communications period will not exceed one hour prior to the commencement of the business portion of the agenda. During this one hour period, all those who wish to speak on a topic contained in the business portion of the agenda will be given priority, and no further speaker cards for these business items (with the exception of public hearing items) will be accepted once the business portion of the agenda commences. Any other public communications which have not concluded during this one hour period may resume after the regular business portion of the agenda has been completed. Page 3 of 715 CITY COUNCIL VISION STATEMENT “Our Vision is to create an equitable, sustainable, and vibrant city, rich in opportunity for all to thrive by building on our foundation and success as a world class community.” Page 4 CONSENT CALENDARS: The following Consent Calendar items are expected to be routine and noncontroversial. They will be acted upon without discussion unless an item is removed by Council Member for discussion. Members of the City Council also sit as the Fire Board, Housing Successor Agency, Successor Agency, and Public Finance Authority and may act on the consent calendar for those bodies as part of a single motion with the City Council consent calendar. D.CONSENT CALENDAR D1. Consideration of Meeting Minutes for Regular Meetings of July 5, 2023. D2. Consideration to Approve City and Fire District Bi-Weekly Payroll in the Total Amount of $2,642,926.97 and City and Fire District Weekly Check Registers (Excluding Checks Issued to Southern California Gas Company) in the Total Amount of $4,946,186.26 Dated June 26, 2023, Through July 09, 2023. (CITY/FIRE) D3. Consideration to Approve City and Fire District Weekly Check Registers for Checks Issued to Southern California Gas Company in the Total Amount of $16,721.03 Dated June 26, 2023, Through July 09, 2023. (CITY/FIRE) D4. Consideration to Receive and File Current Investment Schedules as of June 30, 2023 for the City of Rancho Cucamonga and the Rancho Cucamonga Fire Protection District. (CITY/FIRE) D5. Consideration of the Purchase of Thirty Sets of Firefighting Turnout Gear from AllStar Fire Equipment, Inc. as a Single Source Vendor in the Amount of $115,990. (FIRE) D6. Consideration of Amendment No. 001 to the Professional Services Agreement No. 2021-140 with Superior Pavement Markings Inc. for Annual Citywide Striping and Pavement Marking Services Extending the Agreement Term to June 30, 2024. (CITY) D7. Consideration of Amendment No. 2 to the Professional Services Agreement with Cambridge Seven Associates (Contract No. 2020-120) for Design Services Not To Exceed $66,520. (CITY) D8. Consideration to Accept an Appropriate Grant Revenue in the Amount of $19,114 from the Edward Byrne Memorial Justice Assistance Grant (JAG) for Fiscal Year 2019. (CITY) D9. Consideration to Accept the Heritage Park Equestrian Center Roof Repair Project as Complete, File the Notice of Completion, and Authorize Release of Retention and Bonds. (CITY) D10. Consideration of Final Maps for Tracts 16072-1 and 16072-2, a Related Improvement Agreement, and Improvement Securities, Located North of Wilson Avenue between East Avenue and Etiwanda Avenue, Related to Case No’s. SUBTT16072. An Environment Impact Report was Certified for this Project on June 16, 2004. (CITY) Page 4 of 715 7 11 19 21 85 87 90 102 104 107 CITY COUNCIL VISION STATEMENT “Our Vision is to create an equitable, sustainable, and vibrant city, rich in opportunity for all to thrive by building on our foundation and success as a world class community.” Page 5 D11. Consideration to Approve a Resolution Adopting a Memorandum of Understanding Between the Rancho Cucamonga Fire Protection District and Rancho Cucamonga Firefighters Local 2274 Relative to Wages, Benefits, and Other Terms and Conditions for the Period of July 2023 through June 30, 2026. (RESOLUTION NO. FD 2023-036) (FIRE) D12. Consideration to Adopt a Resolution Approving the Rancho Cucamonga Fire Protection District Salary Schedules for the Fiscal Year 2023-24. (RESOLUTION NO. FD 2023-033) (FIRE) D13. Consideration of Resolution Adopting a Policy Regarding the Distribution of Complimentary Tickets or Passes Pursuant to FPPC Regulation 18944.1. (RESOLUTION NO. 2023-090 AND RESOLUTION NO. FD 2023-035) (CITY/FIRE) E.CONSENT CALENDAR ORDINANCE(S) - SECOND READING/ADOPTION F.ADMINISTRATIVE HEARING ITEM(S) F1. Consideration of First Reading of Ordinance No. 1019, to be Read by Title Only and Waive Further Reading, Repealing Chapter 10.76 of the Rancho Cucamonga Municipal Code, Discontinuing the City's Police Tow Rotation Program and Making a Determination that the Ordinance is Exempt from the California Environmental Quality Act. (ORDINANCE NO. 1019) (CITY) F2. Preliminary Review Hearing to Consider a Proposed Master Plan Application for a Mixed-Use Development that would Include Site-Specific Development Standards, Including a Floor Area Ratio Standard Lower than the Current Standard Under the Development Code, at 9505 Base Line Road. (CITY) G.ADVERTISED PUBLIC HEARINGS ITEM(S) - CITY/FIRE DISTRICT G1. Public Hearing of the City of Rancho Cucamonga to Consider Resolutions Confirming the Diagrams and Assessments and Ordering the Levy and Collection of Annual Assessments for Landscape Maintenance Districts; Street Lighting Maintenance Districts; and Park and Recreation Improvement District No. PD-85 for Fiscal Year 2023/24. (RESOLUTION NOS. 2023-087, 2023-088, 2023-089) (CITY) G2. Public Hearing for Consideration of a Resolution Adopting the Fire District's General Fund Final Budget for Fiscal Year 2023-24. (RESOLUTION NO. FD 2023-034) (FIRE) H.CITY MANAGER'S STAFF REPORT(S) H1. Presentation from Empire Economics Inc. on the City’s Annual Employment and Housing Trends Study and Analysis of the Current and Future State of Warehousing and Distribution. (CITY) H2. Quarterly Development Update – Second Quarter 2023. (CITY) Page 5 of 715 111 154 165 191 195 207 618 621 707 CITY COUNCIL VISION STATEMENT “Our Vision is to create an equitable, sustainable, and vibrant city, rich in opportunity for all to thrive by building on our foundation and success as a world class community.” Page 6 I.COUNCIL BUSINESS I1. Consideration of the City Council Library Subcommittee's Recommendation to Appoint Members to the Library Board of Trustees. (CITY) I2. Designation of Voting Delegates and Alternates for the League of California Cities (Cal Cities) Annual Business Meeting. (CITY) I3. COUNCIL ANNOUNCEMENTS (Comments to be limited to three minutes per Council Member.) I4. INTERAGENCY UPDATES (Update by the City Council to the community on the meetings that were attended.) J.CITY ATTORNEY ITEMS K.IDENTIFICATION OF ITEMS FOR NEXT MEETING L.ADJOURNMENT CERTIFICATION I, Linda A. Troyan, MMC, City Clerk Services Director of the City of Rancho Cucamonga, or my designee, hereby certify under penalty of perjury that a true, accurate copy of the foregoing agenda was posted on at least seventy-two (72) hours prior to the meeting per Government Code 54954.2 at 10500 Civic Center Drive, Rancho Cucamonga, California and on the City's website. LINDA A. TROYAN, MMC CITY CLERK SERVICES DIRECTOR If you need special assistance or accommodations to participate in this meeting, please contact the City Clerk's office at (909) 477-2700. Notification of 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility. Listening devices are available for the hearing impaired. Page 6 of 715 709 710 --- --- *DRAFT* July 5, 2023 | Fire Protection District, Housing Successor Agency, Successor Agency, Public Finance Authority and City Council Regular Meetings Minutes City of Rancho Cucamonga | Page 1 of 4 July 5, 2023 CITY OF RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, HOUSING SUCCESSOR AGENCY, SUCCESSOR AGENCY, PUBLIC FINANCE AUTHORITY AND CITY COUNCIL REGULAR MEETINGS MINUTES The City Council of the City of Rancho Cucamonga held a closed session on Wednesday, July 5, 2023, in the Tapia Conference Room at the Civic Center, 10500 Civic Center Drive, Rancho Cucamonga, California. Mayor Michael called the meeting to order at 4:30 p.m. Present were Council Members: Ryan Hutchison, Kristine Scott, Ashley Stickler, Mayor Pro Tem Lynne Kennedy and Mayor L. Dennis Michael. Also present were: John Gillison, City Manager; Elisa Cox, Assistant City Manager; Nicholas Ghirelli, City Attorney; Matt Burris, Deputy City Manager/Economic and Community Development and Julie Sowles, Deputy City Manager/Civic and Cultural Services. A. ANNOUNCEMENT OF CLOSED SESSION ITEM(S) B. PUBLIC COMMUNICATIONS ON CLOSED SESSION ITEM(S) No public communications were made. C. CITY MANAGER ANNOUNCEMENTS None. D. CONDUCT OF CLOSED SESSION D1. CONFERENCE WITH LABOR NEGOTIATORS JENIFER PHILLIPS, DIRECTOR OF HUMAN RESOURCES; ROBERT NEIUBER, SENIOR HUMAN RESOURCES DIRECTOR; AND NOAH DANIELS, FINANCE DIRECTOR PER GOVERNMENT CODE SECTION 54954.2 REGARDING LABOR NEGOTIATIONS WITH THE RANCHO CUCAMONGA FIREFIGHTERS LOCAL 2274 AND FIRE MANAGEMENT EMPLOYEES GROUP. (CITY/FIRE) D2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PER GOVERNMENT CODE SECTION 54956.8 FOR PROPERTY LOCATED AT 8408 ROCHESTER AVENUE, RANCHO CUCAMONGA, CA 91730 (RANCHO CUCAMONGA EPICENTER STADIUM); AGENCY NEGOTIATORS: JOHN GILLISON AND ELISA COX, REPRESENTING THE CITY OF RANCHO CUCAMONGA; NEGOTIATING PARTY: RANCHO BASEBALL LLC; REGARDING PRICE AND TERMS OF PAYMENT. (CITY) D3. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (D) OF GOVERNMENT CODE SECTION 54956.9; NAME OF CASE: CITY OF RANCHO CUCAMONGA V. DR LANDMARK, INC.; POWER MEDIC TECHNOLOGIES, INC.; HOFER PROPERTIES, LLC; AND DOES 1 THROUGH 5 INCLUSIVE, SBSC CASE NO. CIVDS 1904713. (CITY) D4. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PER GOVERNMENT CODE SECTION 54956.8 FOR PROPERTY GENERALLY LOCATED AT ETIWANDA AVENUE AND THE PACIFIC ELECTRIC TRAIL IDENTIFIED AS PARCEL 0227-121-56-0000 NEGOTIATING PARTIES JOHN GILLISON, CITY MANAGER REPRESENTING THE CITY OF RANCHO CUCAMONGA, AND CARRIE SCHINDLER, SAN BERNARDINO COUNTY TRANSPORTATION AUTHORITY; REGARDING PRICE AND TERMS. (CITY) Page 7 of 715 *DRAFT* July 5, 2023 | Fire Protection District, Housing Successor Agency, Successor Agency, Public Finance Authority and City Council Regular Meetings Minutes City of Rancho Cucamonga | Page 2 of 4 D5. CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (D) OF SECTION 54956.9; NAME OF CASE: HIMNEL USA, INC. D/B/A ST. MARY'S MONTESSORI SCHOOL AND GLOBAL PROPERTY HOLDINGS LLC VS. CITY OF RANCHO CUCAMONGA, SBSC CASE NO.: CIVDS 2014554. (CITY) E. RECESS The closed session recessed at 5:37 p.m. REGULAR MEETING – 7:00 p.m. CALL TO ORDER – COUNCIL CHAMBERS The Regular meetings of the Rancho Cucamonga Fire Protection District, Housing Successor Agency, Successor Agency, Public Finance Authority, and the City of Rancho Cucamonga City Council were held on July 5, 2023, in the Council Chambers at City Hall, located at 10500 Civic Center Drive, Rancho Cucamonga, California. Mayor Michael called the meeting to order at 7:00 p.m. Present were Council Members: Ryan Hutchison, Kristine Scott, Ashley Stickler, Mayor Pro Tem Lynne Kennedy and Mayor L. Dennis Michael. Also present were: John Gillison, City Manager; Nicholas Ghirelli, City Attorney; and Linda Troyan, MMC, City Clerk Services Director. Council Member Hutchison led the Pledge of Allegiance. A. AMENDMENTS TO THE AGENDA None. B. ANNOUNCEMENTS/PRESENTATIONS B1. Presentation of a Proclamation Declaring the Month of July 2023 as National Park & Recreation Month. Katie Distelrath, Deputy Director, Community Services Department, accepted the proclamation. C. PUBLIC COMMUNICATIONS Bill Kaufman, spoke about potential economic opportunities of cannabis dispensaries and submitted an Economic Impact Analysis for the City Council’s review. D. CONSENT CALENDAR Council Member Scott announced that she will need to abstain on item D3, due to a potential conflict of interest as her employer is Southern California Gas Company. D1. Consideration of Meeting Minutes for Special Meetings of June 15, 2023 and June 22, 2023 and Regular Meetings of June 21, 2023. D2. Consideration to Approve City and Fire District Bi-Weekly Payroll in the Total Amount of $1,961,412.83 and City and Fire District Weekly Check Registers (Excluding Checks Issued to Southern California Gas Company) in the Total Amount of $7,915,777.60 Dated June 12, 2023 Through June 25, 2023 and City and Fire District Electronic Debit Registers for the Month of May in the Total Amount of $10,985,772.68. (CITY/FIRE) Page 8 of 715 *DRAFT* July 5, 2023 | Fire Protection District, Housing Successor Agency, Successor Agency, Public Finance Authority and City Council Regular Meetings Minutes City of Rancho Cucamonga | Page 3 of 4 D3. Consideration to Approve City and Fire District Weekly Check Registers for Checks Issued to Southern California Gas Company in the Total Amount of $102.46 Dated June 12, 2023, Through June 25, 2023. (CITY/FIRE) D4. Consideration of an Agreement with Omnitrans for the Operations and Maintenance of West Valley Connector Bus Rapid Transit Project and Authorization of the City Manager to Execute Amendments to the Agreement. (CITY) D5. Consideration of an Appropriation in the Amount of $985,000 and Approval to Purchase Transformers, Switchgears and a Capacitor from Anixter Power Solutions in the Amount of $985,000. (CITY) D6. Consideration of Amendment No. 005 to the Professional Services Agreement with Inland Empire Property Services, Incorporated, for Weed and Fire Hazard Abatement Services in the Amount of $10,000. (FIRE) D7. Consideration of a Single Source Professional Services Agreement with All City Management Inc. for Crossing Guard Services at an Hourly Billing Rate of $29.84 and for a total Annual Amount not to Exceed $395,000 for Fiscal Year 2023/24 and Authorize the City Manager to Approve the Annual Hourly Billing Rate for the Remainder of the Contract Term. (CITY) D8. Consideration of Resolutions Approving the Special Tax Levy for Various Community Facilities Districts and the Special Annual Benefit Assessment for Drainage Area No. 91-2 for the Fiscal Year 2023/24. (RESOLUTION NOS. 2023-070 TO 2023-085) (CITY) D9. Consideration of Resolutions Approving the Special Tax Levy for Community Facilities Districts Nos. 85-1 and 88-1 for Fiscal Year 2023/24. (RESOLUTION NOS. FD 2023-030 AND FD 2023-031) (FIRE) D10. Adoption of a Resolution Declaring Results of a Special Election in Community Facilities District No. 85-1, Annexation No. 23-1, and Ordering the Annexation of Such Property Located at 12981, 12987, 12997, 13003, and 13045 Whittram Avenue in Community Facilities District No. 85-1. (RESOLUTION NO. FD 2023-027) (FIRE) D11. Adoption of a Resolution Declaring Results of a Special Election in Community Facilities District No. 85-1, Annexation No. 23-2, and Ordering the Annexation of Such Property Located at 13261 Arrow Route in Community Facilities District No. 85-1. (RESOLUTION NO. FD 2023-028) (FIRE) D12. Adoption of a Resolution Declaring Results of a Special Election in Community Facilities District No. 85-1, Annexation No. 23-3, and Ordering the Annexation of Such Property Located at 8629 Pecan Avenue in Community Facilities District No. 85-1. (RESOLUTION NO. FD 2023-029) (FIRE) D13. Consideration to Approve a Resolution Establishing Orderly Procedures for the Administration of Employer-Employee Relations Between the District and its Employee Organizations. (RESOLUTION NO. FD 2023-032) (FIRE) MOTION: Moved by Mayor Pro Tem Kennedy, seconded by Council Member Stickler, to approve Consent Calendar Items D1 through D13, with Council Member Scott abstaining on item D3, due to her employment with Southern California Gas Company. Motion carried 5-0. E. CONSENT CALENDAR ORDINANCE(S) - SECOND READING/ADOPTION None. F. ADMINISTRATIVE HEARING ITEM(S) None. Page 9 of 715 *DRAFT* July 5, 2023 | Fire Protection District, Housing Successor Agency, Successor Agency, Public Finance Authority and City Council Regular Meetings Minutes City of Rancho Cucamonga | Page 4 of 4 G. ADVERTISED PUBLIC HEARINGS ITEM(S) - CITY/FIRE DISTRICT None. H. CITY MANAGERS STAFF REPORT(S) H1. Consideration of Resolution No. 2023-086, Adopting Rules of Decorum and Order that Promote Civility at All Public Meetings. (RESOLUTION NO. 2023-086) (CITY/FIRE) City Manager Gillison provided a verbal report for item H1. Mr. Gillison outlined the proposed Rules of Decorum and Order to promote civility and maintain decorum at local public meetings as a result of this year’s City Council Team Building Workshops held on January 30 and June 12, 2023. Council discussion ensued on ensuring public safety for speakers at City Council meetings, maximizing the number of speakers, rules to promote consistency and equity and reviewed rules for the Public Comment period. City Attorney Ghirelli noted a typo in Exhibit A to Resolution No. 2023-086 and asked that the last sentence of the policy be amended to remove the word “guidelines” as the policy should state “these rules for behavior”. MOTION: Moved by Council Member Scott, seconded by Council Member Stickler, to adopt Resolution No. 2023- 086 with the amendment to Exhibit A, adopting Rules of Decorum and Order that promote civility at all Public Meetings. Motion carried 5-0. I. COUNCIL BUSINESS I1. COUNCIL ANNOUNCEMENTS Mayor Pro Tem Kennedy thanked City staff for a successful Fourth of July Fireworks Spectacular event and asked for clarification on the “bonus show” at the conclusion of the event. City Manager Gillison clarified that guests at the event were treated to a “bonus show” due to a half dozen fireworks that were left over from the show that were fired off after the show was over. Mr. Gillison explained that the Fire Marshal who regulates the show adhered to firework requirements and appropriately fired off left over fireworks to be in compliance, giving bystanders a “bonus show”. I2.INTER-AGENCY UPDATES None. J. CITY ATTORNEY ITEMS City Attorney Ghirelli noted there was no reportable action taken during Closed Session held earlier that evening. K. IDENTIFICATION OF ITEMS FOR NEXT MEETING None. L. ADJOURNMENT Mayor Michael adjourned the Council Meeting at 7:30 p.m. __________________________________ Linda A. Troyan, MMC City Clerk Services Director Approved: Page 10 of 715 DATE:July 19, 2023 TO:Mayor and Members of the City Council President and Members of the Boards of Directors FROM:John R. Gillison, City Manager INITIATED BY:Tamara L. Oatman, Finance Director Veronica Lopez, Accounts Payable Supervisor SUBJECT:Consideration to Approve City and Fire District Bi-Weekly Payroll in the Total Amount of $2,642,926.97 and City and Fire District Weekly Check Registers (Excluding Checks Issued to Southern California Gas Company) in the Total Amount of $4,946,186.26 Dated June 26, 2023, Through July 09, 2023. (CITY/FIRE) RECOMMENDATION: Staff recommends City Council/Board of Directors of the Fire Protection District approve payment of demands as presented. Bi-weekly payroll is $1,493,726.23 and $1,149,200.74 for the City and the Fire District, respectively. Weekly check register amounts are $3,953,968.29 and $992,217.97 for the City and the Fire District, respectively. BACKGROUND: N/A ANALYSIS: N/A FISCAL IMPACT: Adequate budgeted funds are available for the payment of demands per the attached listing. COUNCIL MISSION / VISION / GOAL(S) ADDRESSED: N/A ATTACHMENTS: Attachment 1 - Weekly Check Register Page 11 of 715 Agenda Check Register RANCHO CUCAMONGA FIRE PROTECTION DISTRICT Excluding So Calif Gas Company. AND CITY OF RANCHO CUCAMONGA 6/26/2023 through 7/9/2023 Check No.Check Date Vendor Name City Fire Amount AP 00016110 06/28/2023 360 DEEP CLEANING LLC 0.00 7,377.50 7,377.50 ***AP 00016111 06/28/2023 AMG & ASSOCIATES INC 2,422.50 506,096.17 508,518.67 AP 00016112 06/28/2023 CALIF GOVERNMENT VEBA / RANCHO CUCAMONGA 26,902.01 0.00 26,902.01 AP 00016113 06/28/2023 CDCE INC 0.00 960.23 960.23 AP 00016114 06/28/2023 DIAMOND ENVIRONMENTAL SERVICES 431.00 0.00 431.00 AP 00016115 06/28/2023 FEHR & PEERS 18,100.00 0.00 18,100.00 ***AP 00016116 06/28/2023 GOLDEN STATE RISK MANAGEMENT AUTHORITY 118,575.00 1,393.00 119,968.00 AP 00016117 06/28/2023 MIDWEST TAPE LLC 3,058.82 0.00 3,058.82 AP 00016118 06/28/2023 MOFFATT & NICHOL 49,025.07 0.00 49,025.07 AP 00016119 06/28/2023 RCCEA 1,431.50 0.00 1,431.50 AP 00016120 06/28/2023 RCPFA 13,553.74 0.00 13,553.74 AP 00016121 06/28/2023 RICHARDS WATSON & GERSHON 36,209.48 0.00 36,209.48 AP 00016122 06/28/2023 YUNEX LLC 78,984.82 0.00 78,984.82 AP 00016123 07/05/2023 ALLIANT INSURANCE SERVICES INC 231.00 0.00 231.00 AP 00016124 07/05/2023 DELTA DENTAL INSURANCE COMPANY 930.96 0.00 930.96 AP 00016125 07/05/2023 DELTA DENTAL OF CALIFORNIA 43,943.96 0.00 43,943.96 AP 00016126 07/05/2023 DIAMOND ENVIRONMENTAL SERVICES 190.60 0.00 190.60 ***AP 00016127 07/05/2023 GOLDEN STATE RISK MANAGEMENT AUTHORITY 116,867.00 1,393.00 118,260.00 AP 00016128 07/05/2023 AIR EXCHANGE INC 0.00 2,499.23 2,499.23 AP 00016129 07/05/2023 ASSI SECURITY 150.00 0.00 150.00 AP 00016130 07/05/2023 DATA TICKET INC 8,063.77 0.00 8,063.77 AP 00016131 07/05/2023 ECONOLITE CONTROL PRODUCTS INC 225,628.98 0.00 225,628.98 AP 00016132 07/05/2023 FEHR & PEERS 6,187.50 0.00 6,187.50 AP 00016133 07/05/2023 GENERATOR SERVICES CO INC 1,435.92 0.00 1,435.92 AP 00016134 07/05/2023 GENTRY BROTHERS INC 595,017.44 0.00 595,017.44 AP 00016135 07/05/2023 HAMPTON LIVING 702.00 0.00 702.00 AP 00016136 07/05/2023 HOTSY OF SOUTHERN CALIFORNIA 1,472.06 0.00 1,472.06 AP 00016137 07/05/2023 HUITT-ZOLLARS INC 4,451.20 0.00 4,451.20 AP 00016138 07/05/2023 INTERWEST CONSULTING GROUP INC 375.00 0.00 375.00 AP 00016139 07/05/2023 MICHAEL BAKER INTERNATIONAL INC 4,800.00 0.00 4,800.00 AP 00016140 07/05/2023 RICHARDS WATSON & GERSHON 67,701.65 0.00 67,701.65 AP 00016141 07/05/2023 SARGENT TOWN PLANNING INC 55,091.00 0.00 55,091.00 AP 00435097 06/26/2023 CHEN AND KRISTEN H PHILHOWER, JAY 12,384.34 0.00 12,384.34 AP 00435098 06/26/2023 DHCS 615.66 0.00 615.66 AP 00435099 06/26/2023 HERNANDEZ, REUBEN 3,287.95 0.00 3,287.95 AP 00435100 06/26/2023 TENNIS, JARROD 385.51 0.00 385.51 AP 00435101 06/28/2023 AFLAC 24.58 0.00 24.58 AP 00435102 06/28/2023 AIRPORT MOBIL TOWING 2,500.00 0.00 2,500.00 AP 00435103 06/28/2023 ALL WELDING 1,565.00 0.00 1,565.00 AP 00435104 06/28/2023 ARMADA TOWING SERVICE 2,500.00 0.00 2,500.00 AP 00435105 06/28/2023 ARNOLD FIELDS PAINTING 34,650.00 0.00 34,650.00 AP 00435106 06/28/2023 AROCHO, ALMA 676.80 0.00 676.80 AP 00435107 06/28/2023 ASCENT ENVIRONMENTAL INC 7,842.50 0.00 7,842.50 AP 00435108 06/28/2023 AUTO & RV SPECIALISTS INC 57.79 0.00 57.79 AP 00435109 06/28/2023 BEST OUTDOOR POWER INLAND LLC 1,326.71 0.00 1,326.71 AP 00435110 06/28/2023 BILL & WAG'S INC 0.00 822.66 822.66 AP 00435111 06/28/2023 BOOT BARN INC 776.79 0.00 776.79 11:12:55 07/10/2023Current Date:VLOPEZ - Veronica Lopez Page:1 Time:CK_AGENDA_REG_PORTRAIT_CONSOLIDATED - CK: Agenda Check Register Portrait Layout User: Report:Page 12 of 715 Agenda Check Register RANCHO CUCAMONGA FIRE PROTECTION DISTRICT Excluding So Calif Gas Company. AND CITY OF RANCHO CUCAMONGA 6/26/2023 through 7/9/2023 Check No.Check Date Vendor Name City Fire Amount AP 00435112 06/28/2023 BOYD, PRESTON 500.00 0.00 500.00 AP 00435113 06/28/2023 BRACKEN, JEFFREY 500.00 0.00 500.00 AP 00435114 06/28/2023 BRIGHTVIEW LANDSCAPE SERVICES INC 22,197.61 0.00 22,197.61 AP 00435115 06/28/2023 C V W D 91.88 0.00 91.88 ***AP 00435122 06/28/2023 C V W D 93,793.86 1,194.32 94,988.18 AP 00435123 06/28/2023 CALIFORNIA PPE RECON INC 0.00 1,028.95 1,028.95 AP 00435124 06/28/2023 CalPERS LONG-TERM CARE PROGRAM 221.35 0.00 221.35 ***AP 00435125 06/28/2023 CARQUEST AUTO PARTS 2,022.32 259.10 2,281.42 AP 00435126 06/28/2023 CDW GOVERNMENT INC 19,456.95 0.00 19,456.95 AP 00435127 06/28/2023 CERTIFIED TOWING INC 2,500.00 0.00 2,500.00 AP 00435128 06/28/2023 CHAMPION AWARDS & SPECIALTIES 713.31 0.00 713.31 ***AP 00435129 06/28/2023 CINTAS CORPORATION 1,356.84 729.14 2,085.98 ***AP 00435130 06/28/2023 CITIZENS BUSINESS BANK 127.50 26,636.64 26,764.14 AP 00435131 06/28/2023 CITY RENTALS 329.16 0.00 329.16 AP 00435132 06/28/2023 CLARK, KAREN 1,152.00 0.00 1,152.00 AP 00435133 06/28/2023 CLIENT FIRST CONSULTING GROUP LLC 165.00 0.00 165.00 AP 00435134 06/28/2023 CONVERGINT TECHNOLOGIES LLC 26,755.50 0.00 26,755.50 AP 00435135 06/28/2023 CORODATA MEDIA STORAGE INC 50.00 0.00 50.00 AP 00435136 06/28/2023 COUNSELING TEAM INTERNATIONAL, THE 0.00 1,087.50 1,087.50 AP 00435137 06/28/2023 CRIME SCENE STERI-CLEAN LLC 540.00 0.00 540.00 AP 00435138 06/28/2023 CRP/WP ALTA CUVEE OWNER LLC 2,500.00 0.00 2,500.00 AP 00435139 06/28/2023 D & K CONCRETE COMPANY 738.09 0.00 738.09 AP 00435140 06/28/2023 DAISYECO INC 475.59 0.00 475.59 AP 00435141 06/28/2023 DHARMARAJ NADAR, STANLY 1,269.00 0.00 1,269.00 AP 00435142 06/28/2023 DICUS SHERIFF-CORONER, SHANNON D 232.90 0.00 232.90 AP 00435143 06/28/2023 E & S TOWING ENTERPRISES INC 2,500.00 0.00 2,500.00 AP 00435144 06/28/2023 EDWINS TOWING INC 2,500.00 0.00 2,500.00 AP 00435145 06/28/2023 FEDERAL EXPRESS CORP 34.48 0.00 34.48 AP 00435146 06/28/2023 FEDERAL SIGNAL CORPORATION 0.00 971.63 971.63 AP 00435147 06/28/2023 FERGUSON ENTERPRISES LLC #1350 2,300.96 0.00 2,300.96 AP 00435148 06/28/2023 FIREFIGHTERS' SAFETY CENTER INC 0.00 560.30 560.30 AP 00435149 06/28/2023 FOUR POINTS BY SHERATON 2,912.98 0.00 2,912.98 AP 00435150 06/28/2023 FREEMAN, DAVID 250.00 0.00 250.00 AP 00435151 06/28/2023 FRONTIER CALIFORNIA INC 795.00 0.00 795.00 AP 00435152 06/28/2023 FRONTIER COMM 3,840.70 0.00 3,840.70 AP 00435153 06/28/2023 FRONTIER COMMUNICATIONS 122.00 0.00 122.00 AP 00435154 06/28/2023 GENTRY GENERAL ENGINEERING INC 2,510.85 0.00 2,510.85 AP 00435155 06/28/2023 GLADWELL GOVERNMENTAL SERVICES 1,200.00 0.00 1,200.00 AP 00435156 06/28/2023 GODINEZ, RAMON 20.00 0.00 20.00 AP 00435157 06/28/2023 GRAINGER 1,522.40 0.00 1,522.40 AP 00435158 06/28/2023 GRAPHICS FACTORY PRINTING INC 2,693.75 0.00 2,693.75 AP 00435159 06/28/2023 HENRY, KIM R.19,287.00 0.00 19,287.00 AP 00435160 06/28/2023 HERITAGE WELLNESS COLLECTIVE 1,172.00 0.00 1,172.00 AP 00435161 06/28/2023 HILL'S PET NUTRITION SALES INC 2,487.29 0.00 2,487.29 AP 00435162 06/28/2023 HOLLIDAY ROCK CO INC 2,271.44 0.00 2,271.44 AP 00435163 06/28/2023 HP COMMUNICATIONS INC 1,500.00 0.00 1,500.00 AP 00435164 06/28/2023 HR GREEN PACIFIC INC 93,236.00 0.00 93,236.00 11:12:55 07/10/2023Current Date:VLOPEZ - Veronica Lopez Page:2 Time:CK_AGENDA_REG_PORTRAIT_CONSOLIDATED - CK: Agenda Check Register Portrait Layout User: Report:Page 13 of 715 Agenda Check Register RANCHO CUCAMONGA FIRE PROTECTION DISTRICT Excluding So Calif Gas Company. AND CITY OF RANCHO CUCAMONGA 6/26/2023 through 7/9/2023 Check No.Check Date Vendor Name City Fire Amount AP 00435165 06/28/2023 HUDSON AUDIO WORKS 4,500.00 0.00 4,500.00 AP 00435166 06/28/2023 IDEXX DISTRIBUTION INC 326.91 0.00 326.91 AP 00435167 06/28/2023 INLAND PACIFIC BALLET 12,871.25 0.00 12,871.25 AP 00435168 06/28/2023 INLAND SOCAL MEDIA GROUP LLC 995.00 0.00 995.00 AP 00435169 06/28/2023 INTERVET INC 5,382.11 0.00 5,382.11 AP 00435170 06/28/2023 JOHNNY ALLEN TENNIS ACADEMY 4,611.60 0.00 4,611.60 AP 00435171 06/28/2023 KEITH, JORRY 555.00 0.00 555.00 AP 00435172 06/28/2023 KERR, JENA 22.50 0.00 22.50 AP 00435173 06/28/2023 KIMLEY-HORN & ASSOCIATES INC 14,024.50 0.00 14,024.50 AP 00435174 06/28/2023 KINGDOM CALIBRATIONS INC 0.00 184.69 184.69 AP 00435175 06/28/2023 L S A ASSOCIATES INC 3,633.75 0.00 3,633.75 AP 00435176 06/28/2023 LIFE-ASSIST INC 0.00 3,004.41 3,004.41 AP 00435177 06/28/2023 LITTLE, MARC 648.00 0.00 648.00 AP 00435178 06/28/2023 LN CURTIS & SONS 0.00 662.80 662.80 AP 00435179 06/28/2023 LU'S LIGHTHOUSE INC 1,374.57 0.00 1,374.57 AP 00435180 06/28/2023 MAGELLAN ADVISORS LLC 6,000.00 0.00 6,000.00 ***AP 00435182 06/28/2023 MARIPOSA LANDSCAPES INC 330,629.22 2,698.14 333,327.36 AP 00435183 06/28/2023 MAVIS, FLINT 1,700.00 0.00 1,700.00 AP 00435184 06/28/2023 MCKINNEY, JEROME 90.46 0.00 90.46 AP 00435185 06/28/2023 MCMASTER-CARR SUPPLY COMPANY 1,345.50 0.00 1,345.50 AP 00435186 06/28/2023 MEDIWASTE DISPOSAL LLC 40.00 0.00 40.00 AP 00435187 06/28/2023 MERRIMAC PETROLEUM INC 37,083.16 0.00 37,083.16 AP 00435188 06/28/2023 MMASC 90.00 0.00 90.00 AP 00435189 06/28/2023 MR T'S TOWING INC 2,500.00 0.00 2,500.00 AP 00435190 06/28/2023 MRC SMART TECHNOLOGY SOLUTIONS 977.80 0.00 977.80 AP 00435191 06/28/2023 MUSIC LAND 154.00 0.00 154.00 AP 00435192 06/28/2023 MUSIC TREE 561.00 0.00 561.00 AP 00435193 06/28/2023 MWI ANIMAL HEALTH 814.60 0.00 814.60 ***AP 00435194 06/28/2023 NAPA AUTO PARTS 277.13 -253.55 23.58 AP 00435195 06/28/2023 NATIONAL UTILITY LOCATORS LLC 1,470.00 0.00 1,470.00 AP 00435196 06/28/2023 NUTRIEN AG SOLUTIONS INC 4,338.02 0.00 4,338.02 ***AP 00435198 06/28/2023 ODP BUSINESS SOLUTIONS LLC 5,572.77 2,183.06 7,755.83 AP 00435199 06/28/2023 ONWARD ENGINEERING 3,695.00 0.00 3,695.00 AP 00435200 06/28/2023 OSHIRO, ALLEN 850.00 0.00 850.00 AP 00435201 06/28/2023 PACIFIC PRODUCTS & SERVICES 2,791.26 0.00 2,791.26 AP 00435202 06/28/2023 PALMER CONSULTING 3,045.00 0.00 3,045.00 AP 00435203 06/28/2023 PAYMENTUS CORPORATION 894.00 0.00 894.00 AP 00435204 06/28/2023 PEPE'S TOWING SERVICE 2,500.00 0.00 2,500.00 ***AP 00435205 06/28/2023 PFM ASSET MANAGEMENT LLC 13,070.29 2,449.35 15,519.64 AP 00435206 06/28/2023 PLUMMER, JACQUES 0.00 324.00 324.00 AP 00435207 06/28/2023 PRE-PAID LEGAL SERVICES INC 53.36 0.00 53.36 AP 00435208 06/28/2023 PRICE, LORI 119.63 0.00 119.63 AP 00435209 06/28/2023 PSA PRINT GROUP 183.18 0.00 183.18 AP 00435210 06/28/2023 PYRO SPECTACULARS INC 20,398.50 0.00 20,398.50 AP 00435211 06/28/2023 QUALITY CODE PUBLISHING 6,108.00 0.00 6,108.00 AP 00435212 06/28/2023 RANCHO CUCAMONGA TOWN SQUARE 18,242.50 0.00 18,242.50 AP 00435213 06/28/2023 RANCHO SMOG CENTER 499.50 0.00 499.50 11:12:55 07/10/2023Current Date:VLOPEZ - Veronica Lopez Page:3 Time:CK_AGENDA_REG_PORTRAIT_CONSOLIDATED - CK: Agenda Check Register Portrait Layout User: Report:Page 14 of 715 Agenda Check Register RANCHO CUCAMONGA FIRE PROTECTION DISTRICT Excluding So Calif Gas Company. AND CITY OF RANCHO CUCAMONGA 6/26/2023 through 7/9/2023 Check No.Check Date Vendor Name City Fire Amount AP 00435214 06/28/2023 RDO EQUIPMENT COMPANY 1,134.04 0.00 1,134.04 AP 00435215 06/28/2023 ROADSAFE TRAFFIC SYSTEMS INC 477.08 0.00 477.08 AP 00435216 06/28/2023 SAFARILAND LLC 10,261.65 0.00 10,261.65 AP 00435217 06/28/2023 SAFETY NETWORK TRAFFIC SIGNS INC 1,874.85 0.00 1,874.85 AP 00435218 06/28/2023 SAGE OAK SCHOOL 1,000.00 0.00 1,000.00 AP 00435219 06/28/2023 SAMPLE, NANCY L 153.60 0.00 153.60 AP 00435220 06/28/2023 SAN ANTONIO REGIONAL HOSPITAL 0.00 70.00 70.00 AP 00435221 06/28/2023 SBPEA 2,592.28 0.00 2,592.28 AP 00435222 06/28/2023 SCOTT MCLEOD PLUMBING INC 11,748.00 0.00 11,748.00 AP 00435223 06/28/2023 SEKAYAN, THOMAS G 14,463.00 0.00 14,463.00 AP 00435224 06/28/2023 SHEAKLEY PENSION ADMINISTRATION 367.05 0.00 367.05 AP 00435225 06/28/2023 SHEAKLEY PENSION ADMINISTRATION 0.00 183.70 183.70 AP 00435226 06/28/2023 SHOR-LINE 9,521.31 0.00 9,521.31 ***AP 00435227 06/28/2023 SHRED PROS 115.00 126.00 241.00 AP 00435228 06/28/2023 SILVER & WRIGHT LLP 0.00 45.60 45.60 AP 00435229 06/28/2023 SITEONE LANDSCAPE SUPPLY LLC 1,490.40 0.00 1,490.40 AP 00435231 06/28/2023 SOCAL PPE 0.00 12,072.07 12,072.07 AP 00435232 06/28/2023 SOTO ENTERTAINMENT GROUP 3,000.00 0.00 3,000.00 AP 00435233 06/28/2023 SOUTH COAST AQMD 0.00 20.64 20.64 ***AP 00435237 06/28/2023 SOUTHERN CALIFORNIA EDISON 23,903.89 1,683.48 25,587.37 AP 00435238 06/28/2023 SOUTHERN CALIFORNIA EDISON 2,899.29 0.00 2,899.29 AP 00435239 06/28/2023 SOUTHERN CALIFORNIA NEWS GROUP 10,242.56 0.00 10,242.56 AP 00435240 06/28/2023 SOVIC CREATIVE 2,828.83 0.00 2,828.83 AP 00435241 06/28/2023 SPROUT SOCIAL INC 9,244.80 0.00 9,244.80 AP 00435242 06/28/2023 STOVER SEED COMPANY 4,272.29 0.00 4,272.29 AP 00435243 06/28/2023 SUN BADGE CO 0.00 7,069.60 7,069.60 AP 00435244 06/28/2023 SUNRISE FORD 7,717.12 0.00 7,717.12 AP 00435245 06/28/2023 TELEFLEX LLC 0.00 874.50 874.50 AP 00435246 06/28/2023 TIANA SANCHEZ INTERNATIONAL LLC 1,000.00 0.00 1,000.00 AP 00435247 06/28/2023 TOWILL INC 4,405.00 0.00 4,405.00 AP 00435248 06/28/2023 TRIDEN GROUP CORP 8,400.00 0.00 8,400.00 AP 00435249 06/28/2023 TRYFYTT SPORTS 1,325.40 0.00 1,325.40 AP 00435250 06/28/2023 UNITED SITE SERVICES OF CA INC 305.29 0.00 305.29 AP 00435251 06/28/2023 UPS 64.65 0.00 64.65 AP 00435252 06/28/2023 VICTOR MEDICAL COMPANY 5,621.13 0.00 5,621.13 AP 00435253 06/28/2023 VISTA PAINT 141.30 0.00 141.30 AP 00435254 06/28/2023 WALLIS, JOSEPH D 0.00 324.00 324.00 ***AP 00435255 06/28/2023 WALTERS WHOLESALE ELECTRIC CO 3,230.23 359.26 3,589.49 AP 00435256 06/28/2023 WATJE, REBECCA 2,844.00 0.00 2,844.00 ***AP 00435257 06/28/2023 WAXIE SANITARY SUPPLY 7,788.22 158.59 7,946.81 AP 00435258 06/28/2023 WEST COAST ARBORISTS INC 12,332.25 0.00 12,332.25 AP 00435259 06/28/2023 WEST COAST FIRE SALES 0.00 1,264.13 1,264.13 AP 00435260 06/28/2023 WEST COAST SAND & GRAVEL INC 1,560.39 0.00 1,560.39 AP 00435261 06/28/2023 WESTLAND GROUP INC 10,483.75 0.00 10,483.75 AP 00435262 06/28/2023 WHITTIER FERTILIZER 2,532.13 0.00 2,532.13 AP 00435263 06/28/2023 ZOETIS US LLC 318.42 0.00 318.42 AP 00435264 06/28/2023 ZUNIGA, CRYSTAL 3,300.00 0.00 3,300.00 11:12:55 07/10/2023Current Date:VLOPEZ - Veronica Lopez Page:4 Time:CK_AGENDA_REG_PORTRAIT_CONSOLIDATED - CK: Agenda Check Register Portrait Layout User: Report:Page 15 of 715 Agenda Check Register RANCHO CUCAMONGA FIRE PROTECTION DISTRICT Excluding So Calif Gas Company. AND CITY OF RANCHO CUCAMONGA 6/26/2023 through 7/9/2023 Check No.Check Date Vendor Name City Fire Amount ***AP 00435267 06/29/2023 LOWES COMPANIES INC 8,587.07 4,488.08 13,075.15 AP 00435268 06/29/2023 NATIONWIDE PREMIUM HOLDING 1,163.46 0.00 1,163.46 AP 00435269 07/05/2023 AMERICAN PUBLIC POWER ASSOCIATION 6,069.76 0.00 6,069.76 AP 00435270 07/05/2023 ARTISTIC RESOURCES CORPORATION 9,606.17 0.00 9,606.17 AP 00435271 07/05/2023 ASCAP 2,270.04 0.00 2,270.04 AP 00435272 07/05/2023 CALIF ASSOCIATION OF PUBLIC INFO OFFICIALS 275.00 0.00 275.00 AP 00435273 07/05/2023 CALIF INTERGOVERNMENTAL RISK AUTHORITY 0.00 372,941.00 372,941.00 AP 00435274 07/05/2023 CALIFORNIA MUNICIPAL UTILITIES ASSOC 12,373.00 0.00 12,373.00 AP 00435275 07/05/2023 CALIFORNIA UTILITIES EMERGENCY ASSOC 500.00 0.00 500.00 AP 00435276 07/05/2023 CARAHSOFT TECHNOLOGY CORP 45,257.46 0.00 45,257.46 ***AP 00435277 07/05/2023 FRONTIER COMM 1,588.75 240.77 1,829.52 AP 00435278 07/05/2023 HP COMMUNICATIONS INC 500.00 0.00 500.00 AP 00435279 07/05/2023 KAISER FOUNDATION HEALTH PLAN INC 262,547.11 0.00 262,547.11 AP 00435280 07/05/2023 PARKER, DAVID A 1,500.00 0.00 1,500.00 AP 00435281 07/05/2023 PORAC 108.00 0.00 108.00 AP 00435282 07/05/2023 PORAC LEGAL DEFENSE FUND 216.00 0.00 216.00 AP 00435283 07/05/2023 QUADIENT INC 1,638.94 0.00 1,638.94 AP 00435284 07/05/2023 STANDARD INSURANCE COMPANY 13,892.13 0.00 13,892.13 AP 00435285 07/05/2023 STANDARD INSURANCE COMPANY 2,831.70 0.00 2,831.70 AP 00435286 07/05/2023 ADAPT CONSULTING INC 424.41 0.00 424.41 AP 00435287 07/05/2023 ADVANCED CHEMICAL TRANSPORT INC 868.50 0.00 868.50 AP 00435288 07/05/2023 ALL AMERICAN ASPHALT 57,969.95 0.00 57,969.95 AP 00435289 07/05/2023 ALLERGY & ASTHMA CENTER INC 624.79 0.00 624.79 AP 00435290 07/05/2023 ALVAREZ, MARIA ELENA 918.00 0.00 918.00 AP 00435291 07/05/2023 AMTECH ELEVATOR SERVICES 13,541.58 0.00 13,541.58 AP 00435292 07/05/2023 AROCHO, ALMA 724.80 0.00 724.80 AP 00435293 07/05/2023 BAST, KAROLYN 1,008.00 0.00 1,008.00 AP 00435294 07/05/2023 BEST OUTDOOR POWER INLAND LLC 1,654.94 0.00 1,654.94 AP 00435295 07/05/2023 BISEK, DAWN TRICHE 36.00 0.00 36.00 AP 00435296 07/05/2023 BORDIN SEMMER LLP 18,173.83 0.00 18,173.83 AP 00435297 07/05/2023 BOURLAND, CAROL JEAN 900.00 0.00 900.00 AP 00435298 07/05/2023 BRIGHTVIEW LANDSCAPE SERVICES INC 20,022.69 0.00 20,022.69 ***AP 00435299 07/05/2023 C V W D 147.51 344.18 491.69 AP 00435300 07/05/2023 C V W D 184.64 0.00 184.64 ***AP 00435304 07/05/2023 C V W D 48,487.77 450.19 48,937.96 AP 00435305 07/05/2023 CARTY, DIANE 432.00 0.00 432.00 AP 00435306 07/05/2023 CERTIFIED TOWING INC 150.00 0.00 150.00 AP 00435307 07/05/2023 CHAMPION FIRE SYSTEMS INC 2,540.56 0.00 2,540.56 AP 00435308 07/05/2023 CHARLIE RAE ART & DESIGN CO 105.00 0.00 105.00 AP 00435309 07/05/2023 CHAVEZ, APRIL 26.63 0.00 26.63 ***AP 00435310 07/05/2023 CINTAS CORPORATION 2,647.10 364.57 3,011.67 AP 00435311 07/05/2023 CLIMATEC LLC 2,781.00 0.00 2,781.00 AP 00435312 07/05/2023 COAST FITNESS REPAIR SHOP 149.00 0.00 149.00 AP 00435313 07/05/2023 CODING MINDS INC 84.00 0.00 84.00 AP 00435314 07/05/2023 COST RECOVERY SYSTEMS INC 3,000.00 0.00 3,000.00 AP 00435315 07/05/2023 COUNTS UNLIMITED 370.00 0.00 370.00 AP 00435316 07/05/2023 COVETRUS NORTH AMERICA 471.87 0.00 471.87 11:12:55 07/10/2023Current Date:VLOPEZ - Veronica Lopez Page:5 Time:CK_AGENDA_REG_PORTRAIT_CONSOLIDATED - CK: Agenda Check Register Portrait Layout User: Report:Page 16 of 715 Agenda Check Register RANCHO CUCAMONGA FIRE PROTECTION DISTRICT Excluding So Calif Gas Company. AND CITY OF RANCHO CUCAMONGA 6/26/2023 through 7/9/2023 Check No.Check Date Vendor Name City Fire Amount AP 00435317 07/05/2023 CREATIVE BRAIN LEARNING LLC 504.00 0.00 504.00 AP 00435318 07/05/2023 DAISYECO INC 173.37 0.00 173.37 AP 00435319 07/05/2023 DANCE TERRIFIC 1,627.50 0.00 1,627.50 AP 00435320 07/05/2023 DAPEER ROSENBLIT & LITVAK LLP 5,271.10 0.00 5,271.10 AP 00435321 07/05/2023 DATA ARC LLC 18,975.43 0.00 18,975.43 AP 00435322 07/05/2023 DENG, QINGFENG 108.00 0.00 108.00 AP 00435323 07/05/2023 DOLLARHIDE, GINGER 705.60 0.00 705.60 AP 00435324 07/05/2023 DOUG MARTIN CONTRACTING CO INC 19,061.02 0.00 19,061.02 AP 00435325 07/05/2023 DUCKETT, NYSHAE 64.15 0.00 64.15 ***AP 00435326 07/05/2023 DUDEK 26,706.17 1,687.50 28,393.67 AP 00435327 07/05/2023 DUNN-EDWARDS CORPORATION 726.93 0.00 726.93 AP 00435328 07/05/2023 ESCALANTE, MONIQUE 40.09 0.00 40.09 AP 00435329 07/05/2023 FENGXIA, ALEX 29.43 0.00 29.43 AP 00435330 07/05/2023 FERGUSON ENTERPRISES LLC #1350 599.45 0.00 599.45 AP 00435331 07/05/2023 FIALLOS, WILSON 768.00 0.00 768.00 AP 00435332 07/05/2023 FRONTIER CALIFORNIA INC 6,575.00 0.00 6,575.00 AP 00435333 07/05/2023 FRONTIER CALIFORNIA INC 121.00 0.00 121.00 ***AP 00435334 07/05/2023 FRONTIER COMM 301.97 175.67 477.64 AP 00435335 07/05/2023 FUEL SERV 571.55 0.00 571.55 AP 00435336 07/05/2023 FULL COMPASS SYSTEMS LTD 10,239.40 0.00 10,239.40 AP 00435337 07/05/2023 G/M BUSINESS INTERIORS 1,274.03 0.00 1,274.03 AP 00435338 07/05/2023 GEBRESELASSIE, WOLDEMARIAM 98.56 0.00 98.56 AP 00435339 07/05/2023 GIORDANO, MARIANNA 231.00 0.00 231.00 AP 00435340 07/05/2023 GLOBALSTAR USA 176.19 0.00 176.19 AP 00435341 07/05/2023 GRAINGER 1,223.62 0.00 1,223.62 AP 00435342 07/05/2023 GRAPHICS FACTORY PRINTING INC 662.66 0.00 662.66 AP 00435343 07/05/2023 GRAY, ASHLEY 92.41 0.00 92.41 AP 00435344 07/05/2023 GRAYBAR ELECTRIC COMPANY INC 61,986.21 0.00 61,986.21 AP 00435345 07/05/2023 HAULAWAY STORAGE CONTAINERS INC 119.84 0.00 119.84 AP 00435346 07/05/2023 HERNANDEZ GROUP LLC 6,497.33 0.00 6,497.33 AP 00435347 07/05/2023 HOLLIDAY ROCK CO INC 1,750.93 0.00 1,750.93 AP 00435348 07/05/2023 INLAND VALLEY DANCE ACADEMY 936.00 0.00 936.00 AP 00435349 07/05/2023 JOHNNY ALLEN TENNIS ACADEMY 2,185.20 0.00 2,185.20 AP 00435350 07/05/2023 K-K WOODWORKING 991.10 0.00 991.10 AP 00435351 07/05/2023 KIMLEY-HORN & ASSOCIATES INC 36,780.00 0.00 36,780.00 AP 00435352 07/05/2023 KOU, DI 88.88 0.00 88.88 AP 00435353 07/05/2023 LOZANO SMITH LLP 2,292.50 0.00 2,292.50 AP 00435354 07/05/2023 MAHA CELL LIFE INC 75.70 0.00 75.70 ***AP 00435355 07/05/2023 MARIPOSA LANDSCAPES INC 311,599.97 2,698.14 314,298.11 ***AP 00435356 07/05/2023 MCMASTER-CARR SUPPLY COMPANY 132.72 344.87 477.59 AP 00435357 07/05/2023 MERRIMAC PETROLEUM INC 40,177.19 0.00 40,177.19 AP 00435358 07/05/2023 MESA ENERGY SYSTEMS INC 69,428.54 0.00 69,428.54 AP 00435359 07/05/2023 MILLENNIUM UPS LLC 24,351.50 0.00 24,351.50 AP 00435360 07/05/2023 MOE, JOHN 432.00 0.00 432.00 AP 00435361 07/05/2023 MOISA, DANIEL A 840.00 0.00 840.00 AP 00435362 07/05/2023 MUNSON, MICHELLE 918.94 0.00 918.94 AP 00435363 07/05/2023 MUSIC LAND 1,232.00 0.00 1,232.00 11:12:55 07/10/2023Current Date:VLOPEZ - Veronica Lopez Page:6 Time:CK_AGENDA_REG_PORTRAIT_CONSOLIDATED - CK: Agenda Check Register Portrait Layout User: Report:Page 17 of 715 Agenda Check Register RANCHO CUCAMONGA FIRE PROTECTION DISTRICT Excluding So Calif Gas Company. AND CITY OF RANCHO CUCAMONGA 6/26/2023 through 7/9/2023 Check No.Check Date Vendor Name City Fire Amount AP 00435364 07/05/2023 NORMAN, BRETT 0.00 320.00 320.00 AP 00435365 07/05/2023 ODP BUSINESS SOLUTIONS LLC 6,673.97 0.00 6,673.97 AP 00435366 07/05/2023 OTT, SHARON 945.00 0.00 945.00 AP 00435367 07/05/2023 PACIFIC MH CONSTRUCTION INC 1,500.00 0.00 1,500.00 AP 00435368 07/05/2023 POWER & TELEPHONE SUPPLY COMPANY 34,566.07 0.00 34,566.07 AP 00435369 07/05/2023 RAPHA PHYSICAL THERAPY INC 138.60 0.00 138.60 AP 00435370 07/05/2023 REO ELIZABETH LONG 400.00 0.00 400.00 AP 00435371 07/05/2023 RUDD, REBECCA L.466.75 0.00 466.75 AP 00435372 07/05/2023 SAN BERNARDINO COUNTY 0.00 12,538.98 12,538.98 AP 00435373 07/05/2023 SAN BERNARDINO COUNTY DEPT OF PUBLIC HEALTH 571.00 0.00 571.00 AP 00435374 07/05/2023 SHRED PROS 60.00 0.00 60.00 AP 00435375 07/05/2023 SIGURDSON, JADE MICHAEL ANNE 684.00 0.00 684.00 AP 00435376 07/05/2023 SILVER & WRIGHT LLP 17,261.90 0.00 17,261.90 AP 00435377 07/05/2023 SMG - RC PREMIER FOOD SERVICES LLC 4,200.00 0.00 4,200.00 AP 00435378 07/05/2023 SOUTH COAST AQMD 459.69 0.00 459.69 AP 00435379 07/05/2023 SOUTHERN CALIFORNIA EDISON 29,047.19 0.00 29,047.19 AP 00435380 07/05/2023 SUPERIOR PAVEMENT MARKINGS INC 52,991.65 0.00 52,991.65 AP 00435381 07/05/2023 THOMSON REUTERS - WEST 380.00 0.00 380.00 AP 00435382 07/05/2023 THRIFT PROPERTY MGMT 59.55 0.00 59.55 AP 00435383 07/05/2023 UDA, SHIGEHIRA 75.04 0.00 75.04 AP 00435384 07/05/2023 ULINE 2,138.10 0.00 2,138.10 AP 00435385 07/05/2023 URBAN LAND INSTITUTE 5,500.00 0.00 5,500.00 AP 00435386 07/05/2023 VERIZON WIRELESS - LA 0.00 7,110.18 7,110.18 AP 00435387 07/05/2023 WESTLAND GROUP INC 2,625.00 0.00 2,625.00 AP 00435388 07/05/2023 WT CONSTRUCTION SERVICES INC 9,850.10 0.00 9,850.10 AP 00435389 07/06/2023 APX INC 2,889.75 0.00 2,889.75 $3,953,968.29 $4,946,186.26 $992,217.97 Note: Grand Total: Total Fire: Total City: *** Check Number includes both City and Fire District expenditures 11:12:55 07/10/2023Current Date:VLOPEZ - Veronica Lopez Page:7 Time:CK_AGENDA_REG_PORTRAIT_CONSOLIDATED - CK: Agenda Check Register Portrait Layout User: Report:Page 18 of 715 DATE:July 19, 2023 TO:Mayor and Members of the City Council President and Members of the Boards of Directors FROM:John R. Gillison, City Manager INITIATED BY:Tamara L. Oatman, Finance Director Veronica Lopez, Accounts Payable Supervisor SUBJECT:Consideration to Approve City and Fire District Weekly Check Registers for Checks Issued to Southern California Gas Company in the Total Amount of $16,721.03 Dated June 26, 2023, Through July 09, 2023. (CITY/FIRE) RECOMMENDATION: Staff recommends City Council/Board of Directors of the Fire Protection District approve payment of demands as presented. Weekly check register amounts are $15,681.23 and $1,039.80 for the City and the Fire District, respectively. BACKGROUND: N/A ANALYSIS: N/A FISCAL IMPACT: Adequate budgeted funds are available for the payment of demands per the attached listing. COUNCIL MISSION / VISION / GOAL(S) ADDRESSED: N/A ATTACHMENTS: Attachment 1 - Weekly Check Register Page 19 of 715 Agenda Check Register RANCHO CUCAMONGA FIRE PROTECTION DISTRICT So Calif Gas Company Only. AND CITY OF RANCHO CUCAMONGA 6/26/2023 through 7/9/2023 Check No.Check Date Vendor Name City Fire Amount ***AP 00435230 06/28/2023 SOCAL GAS 15,681.23 1,039.80 16,721.03 $15,681.23 $16,721.03 $1,039.80 Note: Grand Total: Total Fire: Total City: *** Check Number includes both City and Fire District expenditures 11:18:43 07/10/2023Current Date:VLOPEZ - Veronica Lopez Page:1 Time:CK_AGENDA_REG_PORTRAIT_CONSOLIDATED - CK: Agenda Check Register Portrait Layout User: Report:Page 20 of 715 DATE:July 19, 2023 TO:Mayor and Members of the City Council President and Members of the Board of Directors FROM:John R. Gillison, City Manager INITIATED BY:Elisa Cox, Assistant City Manager/Administrative Services Director Tamara L. Oatman, Finance Director Jason A. Shields, Management Analyst II SUBJECT:Consideration to Receive and File Current Investment Schedules as of June 30, 2023 for the City of Rancho Cucamonga and the Rancho Cucamonga Fire Protection District. (CITY/FIRE) RECOMMENDATION: Staff recommends that the City Council/Board of Directors of the Fire Protection District receive and file the attached current investment schedules for the City of Rancho Cucamonga (City) and the Rancho Cucamonga Fire Protection District (District) as of June 30, 2023. BACKGROUND: The attached investment schedules as of June 30, 2023 reflect cash and investments managed by the Finance Department/Revenue Management Division and are in conformity with the requirements of California Government Code Section 53601 and the City of Rancho Cucamonga’s and the Rancho Cucamonga Fire Protection District’s adopted Investment Policies as approved on June 22, 2023. ANALYSIS: The City’s and District’s Treasurers are each required to submit a quarterly investment report to the City Council and the Fire Board, respectively, in accordance with California Government Code Section 53646. The quarterly investment report is required to be submitted within 30 days following the end of the quarter covered by the report. However, the City and District Treasurers have each elected to provide this report on a monthly basis. FISCAL IMPACT: None. COUNCIL MISSION / VISION / GOAL(S) ADDRESSED: The monthly investment schedule supports the City Council’s core value of providing and nurturing a high quality of life for all by demonstrating the active, prudent fiscal management of the City’s investment portfolio to ensure that financial resources are available to support the various services the city provides to all Rancho Cucamonga stakeholders. ATTACHMENTS: Attachment 1 - Investment Schedule (City) Attachment 2 - Investment Schedule (Fire) Page 21 of 715 Page 22 of 715 Page 23 of 715 Page 24 of 715 Page 25 of 715 Page 26 of 715 Page 27 of 715 Page 28 of 715 Page 29 of 715 Page 30 of 715 Page 31 of 715 Page 32 of 715 Page 33 of 715 Page 34 of 715 Page 35 of 715 Page 36 of 715 Page 37 of 715 Page 38 of 715 Page 39 of 715 Page 40 of 715 Page 41 of 715 Page 42 of 715 Page 43 of 715 Page 44 of 715 Page 45 of 715 Page 46 of 715 Page 47 of 715 Page 48 of 715 Page 49 of 715 Page 50 of 715 Page 51 of 715 Page 52 of 715 Page 53 of 715 Page 54 of 715 Page 55 of 715 Page 56 of 715 Page 57 of 715 Page 58 of 715 Page 59 of 715 Page 60 of 715 Page 61 of 715 Page 62 of 715 Page 63 of 715 Page 64 of 715 Page 65 of 715 Page 66 of 715 Page 67 of 715 Page 68 of 715 Page 69 of 715 Page 70 of 715 Page 71 of 715 Page 72 of 715 Page 73 of 715 Page 74 of 715 Page 75 of 715 Page 76 of 715 Page 77 of 715 Page 78 of 715 Page 79 of 715 Page 80 of 715 Page 81 of 715 Page 82 of 715 Page 83 of 715 Page 84 of 715 DATE:July 19, 2023 TO:President and Members of the Board of Directors FROM:John R. Gillison, City Manager INITIATED BY:Mike McCliman, Fire Chief Ty Harris, Deputy Fire Chief Darci Vogel, Fire Business Manager Ruth Cain, Procurement Manager SUBJECT:Consideration of the Purchase of Thirty Sets of Firefighting Turnout Gear from AllStar Fire Equipment, Inc. as a Single Source Vendor in the Amount of $115,990. (FIRE) RECOMMENDATION: Staff recommends that the Fire Board authorize the single source purchase of thirty (30) sets of firefighting turnout gear from AllStar Fire Equipment, Inc. in the amount of $115,990. BACKGROUND: The National Fire Protection Association (NFPA) governs turn out gear standards and establishes requirements for protective clothing to protect against the adverse environmental effects encountered by Fire Safety Personnel while performing firefighting and lifesaving operations. NFPA mandates that turnout coats and pants have a service life of no more than 10-years from the date of manufacturer, to limit potential safety issues. Firefighters require two (2) sets of gear (coat and pant components) due to daily exposure to contaminants and the need for NFPA required inspections and maintenance. The Fire District replaces a portion of our gear every year to maintain our compliance with NFPA guidelines and provide our personnel with the safest and most fiscally responsible gear possible. Firefighting coats and pants are each comprised of a 3-layer system. The three-layers involved are the thermal liner, the moisture barrier, and the outer shell. The thermal liner has greatest impact on reducing the stress associated with a fire’s heat by providing thermal protection. This layer traps air in or between layers of nonwoven material quilted to a face cloth fabric. The thermal and moisture layers combine to provide about 75 percent of the protection for the firefighter. The moisture barrier protects the firefighter from water, chemicals, and viral agents. It is made of Polytetrafluoroethylene (PTFE) which is a permeable film barrier laminated to a flame-resistant material. The outer shell is the first line of protection from the heat by providing flame resistance and maintaining the effectiveness of the other two liners. It also protects the firefighter from cuts and abrasions from debris or building materials. While this provides the least amount of thermal protection, it is an important piece of the entire ensemble. Page 85 of 715 Page 2 1 3 4 7 ANALYSIS: The Fire District has determined that thirty (30) sets of turnout gear need to be purchased during the current fiscal year. This will include the annual replacement of seventeen (17) sets of turnouts for existing personnel; four (4) sets for personnel who recently completed their probationary period and need their second set of turnouts; and nine (9) new personnel hired to backfill existing vacancies. The Fire District typically goes out to bid annually for the purchase of turnout gear; however, in FY 2022-23 the Fire District utilized a single source purchase with AllStar Fire Equipment, Inc. AllStar Fire Equipment, Inc. had been awarded the previous two bids and is the local authorized distributor of LION products. LION brand turnouts are well known in the personal protective gear industry and have a proven track record for quality, performance, and safety. The Fire District currently has 142 sets of LION brand turnouts, out of a total 188 sets in service (both frontline and backup sets). Since utilizing these turnouts, Fire personnel have experienced a higher level of fit, function, and mobility than turnouts previously purchased. The quality and durability of these turnouts, balanced with the increased comfort, has been unparalleled. As a result, the Fire District now has a higher standard and expectation for turnout gear moving forward. In order to provide continuity of operations and ensure the health and safety of Fire District personnel, staff recommends utilizing a single source purchase with AllStar Fire Equipment, Inc. for the purchase of LION brand turnout gear for FY 2023-24. This turnout gear continues to meet the needs and safety demands of the Fire District and has proven to be a high-quality product that exceeds brands that have been purchased previously. FISCAL IMPACT: The purchase of firefighting turnout gear was approved in the FY 2023-24 budget. A total of $118,800 was allocated in the Fire Protection Capital Fund under account 3288501-5207 (O&M – Capital Supplies). Sufficient funding is available for this purchase. COUNCIL MISSION / VISION / GOAL(S) ADDRESSED: This item brings together portions of the Council’s vision and core value by providing a sustainable City and promoting a safe and healthy community for all. This is accomplished by ensuring our first responders have the resources and tools necessary to respond effectively during emergency situations. ATTACHMENTS: n/a Page 86 of 715 DATE:July 19, 2023 TO:Mayor and Members of the City Council FROM:John R. Gillison, City Manager INITIATED BY:Jason C. Welday. Director of Engineering Services/City Engineer Chris Ellis, Assistant Engineer SUBJECT:Consideration of Amendment No. 001 to the Professional Services Agreement No. 2021-140 with Superior Pavement Markings Inc. for Annual Citywide Striping and Pavement Marking Services Extending the Agreement Term to June 30, 2024. (CITY) RECOMMENDATION: Staff recommends the City Council approve Amendment No. 001 to authorize an extension to Agreement No. 2021-140 retroactive to December 15, 2022 and continuing through June 30, 2024 pursuant to Section 2 Term of Agreement of the agreement. BACKGROUND: There are approximately 1,150 lane miles of existing roadway within the City. Even though the City periodically resurfaces streets to maintain pavement condition, striping and pavement markings may become faded over time due to heavy traffic or natural wear. This contract allows City staff to install new pavement striping and pavement markings for segments of roadway with such traffic control devices that are worn or in need of updates. In December of 2021, the City Council approved Professional Services Agreement No. 2021-140 with Superior Pavement Markings Inc. for on-call roadway striping services. This agreement was effective for one (1) year with the option to renew in 1-year increments for a total of seven (7) years. ANALYSIS: Throughout the first year of the agreement, the contractor has satisfied the scope of work and performed to a standard acceptable by the City. Year one of Agreement No. 2021-140 expired December 15, 2022. Staff is proposing to take the opportunity to utilize the option to renew in 1- year increments. In order to do so, staff recommends the agreement be extended retroactive to December 15, 2022 and through June 30, 2024 to align with the fiscal year calendar. This will result in five (5), 1-year extension options remaining in the existing agreement. FISCAL IMPACT: Funding in the amount of $150,000 has been included in the Fiscal Year 2023/24 Annual Budget in the Measure I 2010-2040 Fund (Fund 177). Therefore, there is currently no need for an additional appropriation of funds. Work under the proposed agreement will be completed on an as needed basis each year and is Page 87 of 715 Page 2 1 9 4 3 initiated by Engineering staff. The amount of work each year shall not exceed $150,000. Account No.Funding Source Description Amount 1177303-5300 Measure I 2010-2040 (177)Striping Contract $150,000 COUNCIL MISSION / VISION / VALUE(S) ADDRESSED: The execution of this agreement aligns with the Council’s goal of promoting and enhancing a safe and healthy community for all by maintaining good visibility of traffic control devices on existing roadways in the City. ATTACHMENTS: Attachment 1 – Amendment No. 001 Page 88 of 715 ATTACHMENT 1 3 8 7 0 AMENDMENT NO. 001 To Professional Services Agreement (2021-140) Between Superior Pavement Markings, Inc. (hereinafter “Contractor”) And City of Rancho Cucamonga (hereinafter the “City”) This Amendment No. 001 will service to amend the Section 2 Term of Agreement to the Professional Service Agreement, 2021-140, to incorporate the following: Contractor and City would like to extend the existing contract retroactive to December 15, 2022 and continuing through June 30, 2024. Performance and pricing will be reviewed by both parties and any changes will require an updated amendment approved by the City Manager’s Office and Superior Pavement Markings, Inc. All other Terms and Conditions of the original Agreement 2021-140, will remain in full effect. IN WITNESS WHEREOF, the parties, through their respective authorized representatives, have executed this Amendment by way of signature by both parties and on the date indicated below. Superior Pavement Markings, Inc.City of Rancho Cucamonga By:By: Name Date Name Date Title Title By:By: Name Date Name Date Title Title (two signature required if corporation) Page 89 of 715 DATE:July 19, 2023 TO:Mayor and Members of the City Council FROM:John R. Gillison, City Manager INITIATED BY:Wess Garcia, Acting Library Director SUBJECT:Consideration of Amendment No. 2 to the Professional Services Agreement with Cambridge Seven Associates (Contract No. 2020-120) for Design Services Not To Exceed $66,520. (CITY) RECOMMENDATION: Staff recommends the City Council authorize Amendment No. 2 to the Professional Services Agreement with Cambridge Seven Associates (Contract No. 2020-120) for design services not to exceed $66,520. BACKGROUND: After conducting a competitive bid process, the City entered into a contract on October 21, 2020, with Cambridge Seven Associates (C7) to provide design and architectural services for the Rancho Cucamonga Public Library’s Second Story and Beyond® (SSAB) project. The SSAB project will create museum-quality, interactive exhibits that will be featured on the second floor of the Paul A. Biane Library. The museum’s literacy-themed exhibits will be custom designed and fabricated to meet the space’s unique layout and to complement the museum’s overall changing themes. On March 16, 2022, City Council approved an Amendment (No. 1) to approve additional scope of work to the C7 contract (No. 2020-120) due to acceptance of additional San Bernardino County funding for the SSAB project. On March 15, 2022, the Community Project Funding Act through the House Appropriations Committee provided a $1 million agreement with the City for the SSAB project as part of the National Aeronautics and Space Administration’s (NASA) STEM (Science, Technology, Engineering, Math) Education and Accountability Projects. This provided funding for platforms and a space themed exhibit and was accepted by City Council on December 7, 2022. As the SSAB project develops, additional components have been identified including a donor recognition wall to acknowledge sponsors of the space and increased systems coordination to support additional data requirements that will combine power management for turning exhibits on and off and managing a system that controls audio, lighting, camera and exhibits from one access point. ANALYSIS: C7 has worked with City staff throughout the development of the SSAB project. As architect and designer of the SSAB space and exhibits, they continue to provide architecture and construction Page 90 of 715 Page 2 1 7 8 1 administration services for tenant improvements and exhibit fabrication. The addition of Federal funding through the House Appropriations Committee necessitated additions to the initial scope of work. This amendment to the original contract covers expenses related to the following increases to the project’s scope: •Exhibit platforms and the creation of an outer space theme titled “3, 2, 1…Blast Off!” •Systems integration coordination for sound and data •Design of a donor recognition wall for the inaugural capitol fundraising campaign. •Additional construction coordination efforts due to extended construction timeline. TABLE 1 – Contract Cost Breakdown Amount Not to Exceed Current Contract $802,000 Amendment No. 2 $66,520 Grand Total $868,520 Contract No. 2020-120 and Amendment No. 1 are on file with the City Clerk’s Office. FISCAL IMPACT: Design and architectural services fully funded through the Library Capital Fund: 1329601-5650 Capital Project. COUNCIL MISSION / VISION / VALUE(S) ADDRESSED: Providing superior Library Services to residents enhances the overall quality of life in Rancho Cucamonga and the Second Story and Beyond® project will contribute to building and preserving the City’s family-oriented atmosphere. ATTACHMENTS: Attachment 1 – Amendment No. 2 Page 91 of 715 DocuSign Envelope ID: D504450B-11C0-4440-A426-2BAFD9BD330E Page 92 of 715 Architecture Urban Design Master Planning Programming Interior Design Graphic Design Exhibit Design Stefanie Greenfield Patricia E. Intrieri Gary C. Johnson Yongjoo Kim Peter Kuttner Timothy D. Mansfield Adam P. Mitchell Marc Rogers Jose Silveira Stefan Bold Jan L. Brenner Bradley Converse Justin Crane Chris Muskopf James C. Puopolo Douglas Simpson Peter Sollogub Joslin Stewart Pamela N. Sullivan David E. Wiborg Cambridge Seven Associates, Inc. 1050 Massachusetts Avenue, Cambridge, MA 02138 +1 617 492-7000 www.cambridgeseven.com Julie A. Sowles September 29, 2021 Library Director Rancho Cucamonga Public Library Rancho Cucamonga, CA NEED ZIP Re: Second Story and Beyond – Outer Space Theme Additional Service Dear Julie, CambridgeSeven is pleased to submit this additional service proposal to design a new theme for the Second Story and Beyond exhibit about Outer Space to replace the Out to Sea theme. Background Information CambridgeSeven has completed a Design Development package for the exhibits and graphics for three previously approved themes: Out to Sea, Eating, and Outdoor Adventures. At the conclusion of our Design Development phase, the Library requested that we replace the Out to Sea theme with an Outer Space theme. Scope of Work CambridgeSeven will design new exhibits and graphics necessary for the Outer Space theme, replacing these exhibits: ·Fish Market o Food Display o Fish Net Photo Opportunity o Seafood Scale ·Out to Sea Role Play o Sub and Periscope o Sonar o Regulator Test o Diving Helmet o Flipper Walk ·Construction Zone o Build an Octopus We will also design graphics and environmental graphics throughout the exhibit for the Outer Space theme. This additional service covers expenses for bringing these new exhibits and graphics to the Design Development level of design. For the exhibits, we will do hand sketches to confirm design intent before moving into Construction Documents. Exhibit AExhibit A DocuSign Envelope ID: D504450B-11C0-4440-A426-2BAFD9BD330E Page 93 of 715 Second Story and Beyond – Outer Space Theme Additional Service 9/30/2021 Page 2 Cambridge Seven Associates, Inc. 1050 Massachusetts Avenue, Cambridge, MA 02138 +1 617 492-7000 www.cambridgeseven.com Additional Fees CambridgeSeven shall provide these additional services in accordance with the Agreement for Design Professional Services between the City of Rancho Cucamonga and Cambridge Seven Associates, Inc., Contract Number 2020-120, dated August 21, 2020, on a lump sum basis in the amount of $9,540. These services shall be invoiced monthly. Schedule CambridgeSeven will provide these services concurrently with the Construction Document phase. In Summary If you have any questions or would like any additional information, please do not hesitate to contact me. Please return one signed copy of this proposal to me. Sincerely, Douglas Simpson, LEED, BD+C Associate Principal ________________________________________________ _09/30/21_____________ José Silveira Date COO/CFO CambridgeSeven ________________________________________________ _____________________ Julie Sowles Date Library Director City of Rancho Cucamonga DocuSign Envelope ID: D504450B-11C0-4440-A426-2BAFD9BD330E 7/11/2023 | 1:09 PM PDT Acting Library Director Wess Garcia Page 94 of 715 Architecture Urban Design Master Planning Programming Interior Design Graphic Design Exhibit Design Justin Crane Stefanie Greenfield Patricia E. Intrieri Gary C. Johnson Yongjoo Kim Timothy D. Mansfield Adam P. Mitchell Chris Muskopf Marc Rogers José Silveira Stefan Bold Jan L. Brenner Bradley Converse Amy Hastings Paul Herbert James C. Puopolo Wonyeop Seok Douglas Simpson Peter Sollogub Joslin Stewart David E. Wiborg Cambridge Seven Associates, Inc. 1050 Massachusetts Avenue, Cambridge, MA 02138 +1 617 492-7000 www.cambridgeseven.com Wess Garcia, Acting Library Director February 21, 2023 Rancho Cucamonga Library Services Rancho Cucamonga Public Library 12505 Cultural Center Drive Rancho Cucamonga, CA 91739 Re: Second Story & Beyond – Donor Recognition Design Additional Service Dear Wess, CambridgeSeven is pleased to submit this additional service proposal for the design of the Second Story and Beyond donor recognition graphics that will be located in the first floor lobby. Scope of Work – Graphic Design Building upon the design sketches that we have already provided for the donor recognition, which integrate with the triangular patterns on the adjacent windows, CambridgeSeven will complete the donor recognition graphic design. Here are the phases of design that we envision: The first stage will include exploring Alternatives in terms of color, wall layout and material choices. Deliverables will include options for wall layouts, color palettes and templates for the donor recognition plaques. The second phase would be a Synthesis of the options explored based on the library’s feedback. We would push the design direction further, showing templates for each donor level, a wall layout, and drawings showing the material construction and wall attachment of the donor recognition graphics. The third phase would be a Validation, incorporating the library’s feedback and presenting a final design for approval. The fourth phase would be Production of the final digital files. We would produce each graphic file with the individual donor’s name for your review. With the library’s sign-off, we would deliver the production files to the fabricator. The fifth phase would be Construction Administration. We would review shop drawings and samples from the fabricator and answer questions regarding production and installation. We are budgeting a virtual meeting for each of these five phases, with no-in person trips. At the conclusion of our work, we would provide the Rancho Cucamonga Library with an Adobe InDesign file template so that they could continue to produce the digital files and add donors into the future. DocuSign Envelope ID: 6B5BF100-0FDE-4B17-91F2-3CAF0BB92E11 Exhibit B DocuSign Envelope ID: D504450B-11C0-4440-A426-2BAFD9BD330E Page 95 of 715 Second Story & Beyond – Donor Recognition Design Additional Service 2/22/2023 Page 2 Cambridge Seven Associates, Inc. 1050 Massachusetts Avenue, Cambridge, MA 02138 +1 617 492-7000 www.cambridgeseven.com Scope of Work – Lighting Design To enhance the look of the donor recognition walls, we recommend adding a few additional light fixtures to the lobby. These would integrate with the current lighting and ceiling design in order to create a glow and add more prominence to the donor recognition. We would coordinate with Abernathy Lighting and AKF to make the necessary changes to the lighting and power drawings to create a clear change order for the Tenant Improvement General Contractor. Exclusions This proposal is for design services only does not include the production of physical graphics. We have budgeted time for producing donor graphic files up until the fabrication installation deadline for the museum opening. After that date or a maximum of 300 donor plaques, we would be glad to produce additional graphic files on a Time & Materials basis. Schedule We expect the design effort (Phases 1-3) will take six weeks from the time of approval by the City of Rancho Cucamonga. The Production Phase cannot begin until most of the donor names have been confirmed so there may be a pause before this phase begins. We estimate that the Production Phase will take two weeks. The Construction Administration phase schedule will be governed by the fabricator, but we would expect it would take one to two months. Additional Fees CambridgeSeven shall provide these additional services in accordance with the Agreement for Design Professional Services between the City of Rancho Cucamonga and Cambridge Seven Associates, Inc., Contract Number 2020-120, dated August 21, 2020, for the following amounts. These services shall be invoiced monthly. Donor Recognition Graphic Design $20,420 Abernathy Lighting $1,560 AKF (Electrical Engineering) $2,100 Total Additional Service $24,080 Please note this proposal expires August 1, 2023 and may be modified or withdrawn by CambridgeSeven before receipt of acceptance. In Summary If you have any questions or would like any additional information, please do not hesitate to contact me. Please return one signed copy of this proposal to me. Sincerely, Douglas Simpson, LEED, BD+C Associate Principal DocuSign Envelope ID: 6B5BF100-0FDE-4B17-91F2-3CAF0BB92E11DocuSign Envelope ID: D504450B-11C0-4440-A426-2BAFD9BD330E Page 96 of 715 Second Story & Beyond – Donor Recognition Design Additional Service 2/22/2023 Page 3 Cambridge Seven Associates, Inc. 1050 Massachusetts Avenue, Cambridge, MA 02138 +1 617 492-7000 www.cambridgeseven.com ________________________________________________ February 22, 2023 José Silveira Date COO/CFO CambridgeSeven ________________________________________________ _____________________ Wess Garcia Date Acting Library Director City of Rancho Cucamonga DocuSign Envelope ID: 6B5BF100-0FDE-4B17-91F2-3CAF0BB92E11 3/15/2023 | 8:20 AM PDT DocuSign Envelope ID: D504450B-11C0-4440-A426-2BAFD9BD330E Page 97 of 715 Exhibit C DocuSign Envelope ID: D504450B-11C0-4440-A426-2BAFD9BD330E Page 98 of 715 DocuSign Envelope ID: D504450B-11C0-4440-A426-2BAFD9BD330E Page 99 of 715 DocuSign Envelope ID: D504450B-11C0-4440-A426-2BAFD9BD330E 7/11/2023 | 1:09 PM PDT Page 100 of 715 DocuSign Envelope ID: D504450B-11C0-4440-A426-2BAFD9BD330E Page 101 of 715 DATE:July 19, 2023 TO:Mayor and Members of the City Council FROM:John R. Gillison, City Manager INITIATED BY:Michael J. Smith, Chief of Police Jerry Davenport, Administrative Lieutenant Karen Hunt, Sheriff's Service Specialist SUBJECT:Consideration to Accept an Appropriate Grant Revenue in the Amount of $19,114 from the Edward Byrne Memorial Justice Assistance Grant (JAG) for Fiscal Year 2019. (CITY) RECOMMENDATION: Staff recommends the City Council accept revenue funds for JAG Grant FY 19 in the amount of $19,114. Staff also recommends the City Council authorize the appropriation of funds from JAG Grant FY19 in the amount of $19,114 to purchase conference room furniture for the Rancho Cucamonga Police Department. BACKGROUND: Annually, the Byrne Justice Assistance (BJA) announces the availability of grant funds to state and local units of government through the Byrne JAG Grant. This program allows state and local governments to support a broad range of activities to prevent and control crime and to improve the criminal justice system. JAG Grant FY 19 was previously approved for appropriation and spending by City Council on September 2, 2020. Unfortunately, revenue has only just now been made available and released. Due to this delay, project needs were either reimagined or moved to other grant years. ANALYSIS: With the addition of the Real Time Information Center (RTIC), the Public Safety Video Network (PSVN) system has been moved inside the RTIC. This allows for the previously used room to be redesignated as a conference room. Due to the new conference room’s proximity to the RTIC, it could also be used as a temporary, but immediate, Emergency Operations Center. This would allow for critical, real-time information to be shared immediately, while the nature and extent of an incident is initially being assessed. The funding from the JAG Grant FY 19, will be part of the funding used to furnish the new conference room. Page 102 of 715 Page 2 1 9 3 6 FISCAL IMPACT: Staff is requesting the City Council accept JAG grant funds into account number 1361000-4750 in the amount of $19,114. Staff is also requesting an appropriation of $19,114 into account 1361701-5200 (JAG Fund – Operations and Maintenance) to fund the purchase of the conference room furniture. $11,000 will also be moved from the Police Department’s Overtime Budget to cover the complete cost of the project. COUNCIL MISSION / VISION / VALUE(S) ADDRESSED: This project will align with the following Council Core Values promoting and enhancing a safe and healthy community for all and intentionally embracing and anticipating the future. ATTACHMENTS: None. Page 103 of 715 DATE:July 19, 2023 TO:Mayor and Members of the City Council FROM:John R. Gillison, City Manager INITIATED BY:Matt Burris, Deputy City Manager/Acting PW Services Director Jeff Benson, Parks and Landscape Superintendent Kenneth Fung, Associate Engineer SUBJECT:Consideration to Accept the Heritage Park Equestrian Center Roof Repair Project as Complete, File the Notice of Completion, and Authorize Release of Retention and Bonds. (CITY) RECOMMENDATION: Staff recommends the City Council: 1. Accept the Heritage Park Equestrian Center Roof Repair Project, Contract No. 2023-017, as complete. 2. Approve the final contract amount of $134,716.48. 3. Authorize the release of the Faithful Performance Bond and acceptance of Maintenance Bond. 4. Authorize the release of the Labor and Materials Bond in the amount of $132,251.00, six months after the recordation of said notice if no claims have been received. 5. Authorize the Public Works Services Director to file a Notice of Completion and release of the retention in the amount of $6,735.82, 35 days after acceptance. 6. Authorize the Public Works Services Director to approve the release of the Maintenance Bond one year following the filing of the Notice of Completion if the improvements remain free from defects in material and workmanship. BACKGROUND: The Heritage Park Equestrian Center Roof Repair Project scope of work consisted of the repair of the damaged upper and lower roofs at the Heritage Park Equestrian Center building and other related items of work. Pertinent information of the project is as follows: Budgeted Amount:$150,000.00 Publish Dates for Local Paper:November 8, 2022 and November 15, 2022 Bid Opening:December 13, 2022 Contract Award Date:February 1, 2023 Low Bidder:AME Builders, Inc. Contract Amount:$132,251.00 Contingency:$17,749.00 Final Contract Amount:$134,716.48 Difference in Contract Amount:$2,465.48 (1.9 %) Page 104 of 715 Page 2 1 9 4 0 ANALYSIS: The subject project has been completed in accordance with the approved plans and specifications and to the satisfaction of the Public Works Services Director. The net increase in the total cost of the project is a result of one (1) Contract Change Order (CCO). After the existing roof tiles and underlayment were removed, it was discovered that nine (9) sheets of plywood were damaged and had to be replaced. Also, it was discovered that a significant quantity of roof tiles were damaged and could not be reused. As a result, new roof tiles were purchased. At the end of the one-year maintenance period, if the improvements remain free from defects in materials and workmanship, the City Clerk is authorized to release the Maintenance Bond upon approval by the Public Works Services Director. FISCAL IMPACT: Originally, funding ($150,000) was included in the Fiscal Year 2021/2022 adopted budget for this project in account number 1848303-5607 (PD 85). Unfortunately, the contracts for design consultants / architectural services for multiple firms were not approved until March 2022, which meant that the project plans and specifications could not be completed in time to bid and award this project before the end of Fiscal Year 2021/2022. To award this project, the City Council approved the appropriation of $150,000 from PD 85 fund balance to account number 1848303- 5607. COUNCIL MISSION / VISION / VALUE(S) ADDRESSED: This equestrian center is a valued component of the City’s equestrian community. By repairing the center’s roof, this project addresses the City Council goal of providing and nurturing a high quality of life for all. ATTACHMENTS: Attachment 1 – Notice of Completion Page 105 of 715 RECORDING REQUESTED BY: CITY OF RANCHO CUCAMONGA P. O. Box 807 Rancho Cucamonga, California 91730 WHEN RECORDED MAIL TO: CITY CLERK CITY OF RANCHO CUCAMONGA P. O. Box 807 Rancho Cucamonga, California 91730 Exempt from recording fees pursuant to Govt. Code Sec. 27383 NOTICE OF COMPLETION NOTICE IS HEREBY GIVEN THAT: 1. The undersigned is an owner of an interest or estate in the hereinafter described real property, the nature of which interest or estate is: All public rights-of-way within the boundaries of Contract No. 2023-017 2. The full name and address of the undersigned owner is: CITY OF RANCHO CUCAMONGA, 10500 CIVIC CENTER DRIVE, P. O. BOX 807, RANCHO CUCAMONGA, CALIFORNIA 91730. 3. On July 5, 2023, there was completed in the hereinafter described real property the work of improvement set forth in the contract documents for: Heritage Park Equestrian Center Roof Repair Project Repair of damaged upper and lower roofs at the Heritage Park Equestrian Center building plus other related work 4. The name of the original contractor for the work of improvement as a whole was: AME Builders, Inc. 5. The real property referred to herein is situated in the City of Rancho Cucamonga, County of San Bernardino, California, and is described as follows: 5546 Beryl Street (Heritage Park), Rancho Cucamonga, CA 91730 APN: 1061-631-01 CITY OF RANCHO CUCAMONGA, a Municipal Corporation, Owner I hereby certify under penalty of perjury that the foregoing is true and correct. DATE Executed in the City of Rancho Cucamonga, California Matt Burris Acting Public Works Services Director ATTACHMENT 1 Page 106 of 715 DATE:July 19, 2023 TO:Mayor and Members of the City Council FROM:John R. Gillison, City Manager INITIATED BY:Jason C. Welday, Director of Engineering Services/City Engineer Brian Sandona, Senior Civil Engineer SUBJECT:Consideration of Final Maps for Tracts 16072-1 and 16072-2, a Related Improvement Agreement, and Improvement Securities, Located North of Wilson Avenue between East Avenue and Etiwanda Avenue, Related to Case No’s. SUBTT16072. An Environment Impact Report was Certified for this Project on June 16, 2004. (CITY) RECOMMENDATION: Staff recommends that the City Council: 1. Approve the Final Maps for Tract No.’s 16072-1 and 16072-2; 2. Approve the Improvement Agreement for related public improvements and authorize the Mayor and the City Clerk to sign said Agreements; 3. Accept security in the form of bonds for completion of the related public improvements; and 4. Approve the plans and specifications for the related public improvements on file with the City Engineer. BACKGROUND: Tentative Tract Map 16072 (Case No. SUBTT16072) was approved for the subdivision and development of 358 single-family lots ranging in size from approximately 9,000 square feet to 0.5 acres each. The tentative tract map was approved on June 16, 2004 by the City Council via Resolution No. 04-206 along with certification of the associated Environmental Impact Report. The 3-year approval period for a tentative map typically begins on the date the map is approved, but in this case the effective date was arguably deferred until annexation of the subject land into the City was completed by LAFCO. Several discretionary and legislative extensions of this tentative map have also been granted over the years and its current expiration date is November 15, 2023. Currently, no further discretionary or legislative extensions are available for the tentative map. However, the project is a phased subdivision with four total phases and pursuant to the Subdivision Map Act, Government Code Section 66452.6(a)(1), filing of a final map for each phase of the subdivision provides a 4-year extension to the expiration date if the subdivider is required to make certain investments in public improvements. ANALYSIS: The applicant, Golden Meadowland, LLC, has submitted Improvement Agreements and Securities to guarantee the off-site public improvements for the first two phases of Tract 16072 in the following amounts: Page 107 of 715 Page 2 1 9 1 0 TR 16072-1: Faithful Performance Bond No. 7901023874 $5,350,100 Labor and Material Bond No. 7901023848 $5,350,100 TR 16072-2: Faithful Performance Bond No. 7901023849 $2,922,300 Labor and Material Bond No. 7901023850 $2,922,300 Staff has reviewed the final maps submitted for Tracts 16072-1 and 16072-2 and determined that they are in substantial conformity with the approved Tentative Tract Map and conditions of approval. Among these conditions is a requirement to transfer 147.7 acres of off-site land for permanent open space and habitat preservation or to deposit an equivalent mitigation cost of $10,000 per developable acre with a City-approved conservation agency. Staff has received documentation of an agreement between the developer and the Inland Empire Resource Conservation District accepting the equivalent mitigation cost and satisfying the conservation condition. Pursuant to Government Code Section 66458(a), approval of timely filed final maps substantially conforming to the Subdivision Map Act, local subdivision ordinances, and conditions of approval in effect at the time of the tentative map’s approval is deemed a ministerial action of the City Council. The City Council’s approval of the subject maps will authorize their recording. Approval of this item by the City Council would approve Tract Maps 16072-1 and 16072-2 and allow their recordation. Environmental Assessment Pursuant to the California Environmental Quality Act ("CEQA") and the City's local CEQA Guidelines, the City certified an Environmental Impact Report on June 16, 2004, in connection with the City's approval of Tentative Tract Map SUBTT16072. Pursuant to CEQA Guidelines Section 15162, no subsequent or supplemental EIR or Negative Declaration is required in connection with subsequent discretionary approvals of the same project unless: (i) substantial changes are proposed to the project that indicate new or more severe impacts on the environment; (ii) substantial changes have occurred in the circumstances under which the project was previously reviewed that indicates new or more severe environmental impacts; or (iii) new important information shows the project will have new or more severe impacts than previously considered; or (iv) additional mitigation measures are now feasible to reduce impacts or different mitigation measures can be imposed to substantially reduce impacts. Furthermore, as a ministerial action, the City Council’s approval of the two phased final maps is not subject to CEQA. FISCAL IMPACT: There are no proposed annexations for this project. The project is within Community Facilities District (CFD) 2017-01. CFD 2017-01 currently collects $20.00 per acre with a maximum of $2,548.47 per acre on undeveloped property. Development of the residential lots created by this action will result in the lots being levied as residential property as identified under the CFD’s Rate and Method of Apportionment as early as Fiscal Year 2024/25. However, during construction of the public improvements required for these tracts, the developer will be installing 725 street trees and 166 streetlights that will be maintained by CFD 2017-01. Page 108 of 715 Page 3 1 9 1 0 COUNCIL MISSION / VISION / VALUE(S) ADDRESSED: This item addressed the City Council's vision for the City by working together cooperatively and respectfully with property owners and developers to create a vibrant city, rich in opportunity for all to thrive. ATTACHMENTS: Attachment 1 – Vicinity Map Page 109 of 715 ATTACHMENT 1 Vicinity Map NOT TO SCALE Project Site Page 110 of 715 DATE:July 19, 2023 TO:President and Members of the Board of Directors FROM:John R. Gillison, City Manager INITIATED BY:Robert Neiuber, Senior Human Resources Director Lucy Alvarez-Nunez, Management Analyst SUBJECT:Consideration to Approve a Resolution Adopting a Memorandum of Understanding Between the Rancho Cucamonga Fire Protection District and Rancho Cucamonga Firefighters Local 2274 Relative to Wages, Benefits, and Other Terms and Conditions for the Period of July 2023 through June 30, 2026. (RESOLUTION NO. FD 2023-036) (FIRE) RECOMMENDATION: Staff recommends the Fire Board of the Rancho Cucamonga Fire Protection District approve the attached resolution adopting a memorandum of understanding between the Rancho Cucamonga Fire Protection District and Rancho Cucamonga Firefighters Local 2274 relative to wages, benefits, and other terms and conditions for the period of July 2023, through June 30, 2026. BACKGROUND: The Rancho Cucamonga Fire Board previously approved a three-year Memorandum of Understanding (MOU) between the Rancho Cucamonga Fire Protection District (District) and Firefighters Local 2274, effective August 1, 2019, through June 30, 2023. In January 2023, the Fire District and Fire Union representatives began negotiations for the successor MOU. After meeting and conferring in good faith, the parties reached an agreement in late June 2023. The Firefighters Local 2274 voted to approve the negotiated terms for a three-year (3) Memorandum of Understanding (MOU). ANALYSIS: The negotiated and agreed upon MOU was settled in mutual recognition of the current economic conditions in the State of California, the ongoing adjustments to CalPERS, the ongoing fiscal challenges facing all local agencies, and prudent public policy, while balancing the need to maintain competitive compensation levels. The three-year (3 year) agreement includes:  Cost of Living Adjustment 3.25% effective the first full pay period in July 2023, 2.5% effective the first full pay period in July 2024, 2.5% effective the first full pay period in July 2025.  Equity Adjustments to bring positions within the bargaining unit closer to market Page 111 of 715 Page 2 1 9 3 8 3.25% effective the first full pay period in October 2023, 2.5% effective the first full pay period in January 2025, 2.5% effective the first full pay period in January 2026.  Classic CalPERS members pick up 1% of compensation earnable via payroll withholding as cost sharing of the employer contributions required by CalPERS effective the first full pay period in July 2023.  Effective the first full pay period in July 2025, cost-sharing contributions by Classic CalPERS members shall fluctuate up or down by the same percentage change that CalPERS may make to the employee contribution rate of PEPRA members. Thereafter the cost-sharing amount shall fluctuate at the start of each fiscal year. The amount of Classic CalPERS member cost sharing shall be capped at a maximum of 3% of compensation earnable and at a minimum of 0%.  Additional Bereavement Leave of 40 hours for 40-hour personnel and 56 hours for shift personnel when the bereavement leave is related to a close family member or relative.  Change to Natal and Adoption Leave with Pay from 2 days to 120 hours.  Removal of old or outdated MOU language. This agreement is to be effective the first full pay period in July 2023 or the first full pay period after the District adoption, whichever is later. Staff recommends the Fire Board approve the attached resolution adopting the agreed upon Memorandum of Understanding between the Fire District and Firefighters Local 2274. FISCAL IMPACT: The fiscal impact resulting from this agreement has a year one cost of $1,150,840 with an additional cost of $777,470 in year two and $816,000 in year three. COUNCIL MISSION / VISION / GOAL(S) ADDRESSED: This item addresses the Council’s core value of working cooperatively and respectfully with one another, and intentionally embracing and anticipating the future by taking actions to further attract and retain an exceptional workforce. ATTACHMENTS: Attachment 1 - Resolution No. FD 2023-036 Attachment 2 - Memorandum of Understanding Page 112 of 715 Resolution No. FD 2023-XXX 3 8 6 5 RESOLUTION NO. FD 2023-XXX A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, RANCHO CUCAMONGA, CALIFORNIA, APPROVING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE DISTRICT AND RANCHO CUCAMONGA FIREFIGHTERS LOCAL 2274 RELATIVE TO WAGES, BENEFITS AND OTHER TERMS AND CONDITIONS OF EMPLOYMENT FOR THE PERIOD OF JULY 2023, THROUGH JUNE 30, 2026 WHEREAS, Representatives of the Rancho Cucamonga Fire Protection District ("District": hereinafter) and the Rancho Cucamonga Firefighters Local 2274 “Fire Union” have met and conferred pursuant to the provisions of the Meyers-Milias-Brown Act (California Government Code §3500, et seq.) with regard to terms and conditions of employment; and WHEREAS, Representatives of the District and Fire Union have agreed upon and presented to this Board a Memorandum of Understanding pertaining to the Fire Union effective, July 2023, through June 30, 2026, specifying the results of said meet and confer process; and WHEREAS, All legal prerequisites to the adoption of this Resolution have occurred; and NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Rancho Cucamonga Fire Protection District of the City of Rancho Cucamonga that in all respects, as set forth in the recitals of this Resolution, the attached Memorandum of Understanding entered into by and between District representatives and the Firefighters Local 2274 for the period July 2023, through June 30, 2026. PASSED, APPROVED, AND ADOPTED by the Board of Directors, this 19th day of July 2023. AYES:Alexander, Michael, Spagnolo, Steinorth, Williams NOES:None ABSENT:None ABSTAINED:None ATTACHMENT 1 Page 113 of 715 1 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 ATTACHMENT 2 MEMORANDUM OF UNDERSTANDING RANCHO CUCAMONGA FIRE PROTECTION DISTRICT AND RANCHO CUCAMONGA FIREFIGHTERS’ ASSOCIATION - IAFF LOCAL 2274 2023-2026 Page 114 of 715 2 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 Contents PREAMBLE................................................................................................................................................4 ARTICLE I RECOGNITION .....................................................................................................................4 ARTICLE II COMPENSATION ................................................................................................................4 § 1.Survey ............................................................................................................................................4 § 2.Salary Plan....................................................................................................................................6 § 3.Work Periods and Overtime .................................................................................................12 § 4.Uniform Allowance ..................................................................................................................14 § 5.Employee Group Insurance ..................................................................................................14 § 6.Retirement Plan ........................................................................................................................16 § 7.Work-Related Injuries .............................................................................................................20 § 8.Carpooling ..................................................................................................................................20 § 9.IRS 125 Plan ...............................................................................................................................20 § 10.Voluntary Employee Benefit Association ....................................................................21 § 11.Deferred Compensation .....................................................................................................21 ARTICLE III LEAVES .............................................................................................................................21 § 1.Holidays.......................................................................................................................................21 § 2.Vacation Leave ..........................................................................................................................23 § 3.Sick Leave ..................................................................................................................................24 § 4.Conversion Factor ...................................................................................................................27 § 5.Personal Leave .........................................................................................................................27 § 6.Bereavement Leave .................................................................................................................28 § 7.Compensatory Time ................................................................................................................28 § 8.Military .........................................................................................................................................29 § 9.Jury Duty .....................................................................................................................................30 § 10.Civil Subpoena/Criminal Subpoena ...............................................................................30 § 11.Leaves of Absence without Pay ......................................................................................31 § 12.Association Business .........................................................................................................31 § 13.Union Leave Bank ................................................................................................................32 § 14.Natal and Adoption Pay .....................................................................................................33 § 15.Family and Medical Leave .................................................................................................33 ARTICLE IV GRIEVANCE PROCEDURE ...........................................................................................33 § 1.Purpose .......................................................................................................................................33 Page 115 of 715 3 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 § 2.Objectives ...................................................................................................................................34 § 3.General Provisions ..................................................................................................................34 § 4.Informal Grievance Procedure.............................................................................................35 § 5.Formal Grievance Procedure ...............................................................................................35 ARTICLE V DISCIPLINE........................................................................................................................37 ARTICLE VI SAFETY .............................................................................................................................37 § 1.Compliance ................................................................................................................................37 § 2.No Discrimination ....................................................................................................................37 § 3.Safety Equipment .....................................................................................................................37 § 4.Employee Responsibility .......................................................................................................37 § 5.Minimum Staffing .....................................................................................................................38 § 6.Smoking Policy .........................................................................................................................38 § 7.Weather Related Mandatory Recall ....................................................................................38 ARTICLE VII MANAGEMENT RIGHTS ...............................................................................................39 § 1.Scope of Rights ........................................................................................................................39 § 1.Emergency Conditions ...........................................................................................................40 ARTICLE VIII MAINTENANCE OF BENEFITS ..................................................................................40 ARTICLE IX APPROVAL BY THE BOARD OF DIRECTORS ........................................................41 ARTICLE X PROVISIONS OF LAW ....................................................................................................41 ARTICLE XI TERM..................................................................................................................................42 Page 116 of 715 4 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 PREAMBLE This Memorandum of Understanding (“MOU” hereinafter) is made and entered into by and between the Rancho Cucamonga Fire Protection District (“District” hereinafter), and the Rancho Cucamonga Firefighters’ Association - IAFF Local 2274 (“Union” hereinafter). The terms and conditions contained in this MOU are applicable to all full-time employees within this unit and contain the complete results of negotiations concerning wages, hours and other terms and conditions of employment for said employees represented herein. ARTICLE I RECOGNITION Pursuant to the provisions of existing rules and regulations and applicable State law, District hereby acknowledges the Union as the exclusive recognized employee organization for the representation unit, which includes non-management safety employees of the District, who are employed on a full-time basis. ARTICLE II COMPENSATION § 1.Survey District will conduct a survey in accordance with the elements and procedures provided below. A. Timing: The survey will be completed and available for review by District and Union no later than December 1 of the year prior to MOU expiration unless mutually agreed otherwise by the parties. Survey data will be those compensation amounts known and in effect as of the December 1 survey date. In the event a survey agency has a MOU that extends beyond the end of the fiscal year during which the survey is performed, the survey elements known and scheduled to be in force as of the following July will also be surveyed and included in the total compensation survey by the December 1 date. B. Survey Agencies: (1) Chino Valley Fire District, (2) City of West Covina, (3) City of Riverside, (4) City of Pasadena, (5) City of Ontario, (6) City of Corona. C. Survey Elements: 1. Top step base pay for Firefighter, Engineer, and Captain; 2. Emergency Medical Technician pay or stipend; 3. Paramedic pay or stipend; 4. Agency pick-up of member contributions to the Public Employees’ Retirement System (“PERS”); employer contribution to PERS, net of any employee cost- sharing; 5. Uniform Pay; 6. Employer Contribution to 401(a) Plan; Page 117 of 715 5 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 7. Maximum employer contribution to Voluntary Employee Benefit Association (VEBA). For the purposes of the survey, this benefit will be reflected as a fringe benefit under MSA; 8. Maximum employer contribution to medical, dental, vision and long-term disability plans for new employees; and 9. Any other incentive or premium that 50% or more of the individuals given in a classification at an agency are eligible to receive, if it is also provided by 4 or more of the survey agencies, exclusive to the District. An individual is “eligible to receive” an incentive or premium if that individual can receive the item upon satisfaction of specified conditions (if any), without limits as to the number of individuals who can receive the incentive. For example, if a specialized training incentive is available to each individual who achieves the specific technical qualifications, the individual is “eligible to receive” that incentive even if he or she has not yet attained the technical certification that is required to actually receive it. Conversely, if a department offers a premium that requires training but only grants that premium to a limited number of individuals or only to individuals in a certain limited number of assignments, the number of individuals above the limit are not eligible to receive the premium. In those instances, the stipends may be reviewed and discussed on an individual basis. D. Survey Procedures and Users: Any survey element that is expressed as a percent of salary will be converted to a dollar amount using the top step base pay for the classification and agency involved. Multi-tiered survey elements involving medical benefits or other health and welfare benefits will be surveyed based on the compensation provided to new employees for that element. If applicable, other multi-tiered incentives will be surveyed at the highest amount of incentive pay obtainable, so long as the thresholds in Item C.7 are met. For comparison purposes in determining a market average, the high and low (of those that receive any given benefit) will be dropped for each salary element, except base salary, where all survey agencies will be used. After dropping the high and low agency, the mean average for the applicable survey element will be calculated. The resulting average numbers for each survey element will be added together to determine a cumulative average total compensation. The results may be used for comparison purposes in negotiations involving future compensation adjustments. There is no obligation to implement and salary element or to make any compensation adjustment based on the survey results and the parties acknowledge that other factors, including revenue, staffing, PERS contributions and other post-employment benefit (“OPEB”) costs play a significant factor in the ability of the District to implement any survey element. Example: Page 118 of 715 6 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 1. Look at a particular benefit at the maximum level achievable (in this example highlighted in yellow for each city): Chino Valley Fire District 7% City of West Covina Benefit X – 3% or 5% City of Riverside Benefit X – 5%; 10% or 15% City of Pasadena Benefit X – 3% or 6% City of Ontario N/A City of Corona Benefit X – 2% 2. Drop high (Riverside 15%) and low (Corona 2%) from among the four agencies that offer the benefit. 3. Average remaining three cities [(CVFD 7% +W.C 5% + Pasadena 6%) =6%]. 4. Thus, Benefit X for market comparison purposes is assumed to be 6%. § 2.Salary Plan A. Salary Adjustment All bargaining unit members shall receive a cost-of-living adjustment according to the following schedule: 3.25% effective the first full pay period in July 2023 2.5% effective the first full pay period in July 2024 2.5% effective the first full pay period in July 2025 All bargaining unit members shall receive an equity adjustment according to the following schedule: 3.25% effective the first full pay period in October 2023 2.5% effective the first full pay period in January 2025 2.5% effective the first full pay period in January 2026 B. Salary Ranges The base salary ranges for all classes in the bargaining units shall consist of five (5) steps, labeled A through E, with approximately five percent (5%) between each step. All stipends will be set at Step E. Advancement between steps requires a satisfactory or higher annual performance evaluation. No employee shall receive more than one step increase in a 12-month period unless granted for outstanding achievement pursuant to Section 2(G) below. Placement within the range shall be in accordance with the following: Page 119 of 715 7 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 1. Salary on appointment New employees shall be compensated at Step “A” of the salary range to which their class is allocated. If unusual recruitment difficulties are encountered or a candidate is exceptionally well qualified, appointment at a higher step in the salary range may be authorized by the Fire Chief. 2. Merit Salary Adjustments Advancement within a salary range shall not be automatic but shall be based upon job performance and granted only on the recommendation of the employee’s supervisor and approval of the Fire Chief. Employees shall be considered for merit salary increases in accordance with the following: a. Employees who are placed at Step A upon original employment, reinstatement, or promotion are eligible for a merit salary review after six (6) months of service. Subsequent merit salary review dates shall fall upon the completion of twelve (12) month service intervals. b. Employees who are placed at Step B or above upon original employment, reinstatement, or promotion shall be eligible for a merit salary review after six months of service. Subsequent review dates shall fall upon the completion of twelve (12) month service intervals. c. The granting of an official leave of absence of more than thirty (30) continuous calendar days, other than military leave, shall cause the employee’s merit salary review date to be extended the number of calendar days he or she was on leave. d. If, in the supervisor’s judgement, the employee’s performance does not justify a salary increase on the review date, the employee shall be reevaluated before the expiration of six (6) months dating from the employee’s review date. If the period of postponement exceeds three (3) months and the employee receives a salary increase, the employee shall be assigned a new review date based on the date the increase was granted. e. Authorized salary step increases shall become effective at the beginning of the pay period nearest the employee’s review date. f. Should an employee’s review date be overlooked, and upon discovery of the error, the employee is recommended for a salary increase, the employee shall receive a supplemental payment compensating him or her for the additional he or she would have received had the increase been granted at the appropriate time. g. The normal merit salary increase shall be one (1) step granted in accordance with the preceding. However, to reward outstanding achievement and performance, the Fire Chief may grant one (1) additional step increase not to exceed one (1) step in any given six (6) month period. Page 120 of 715 8 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 h. In order to address a situation where application of this section would result in the inequitable treatment of employees and upon the recommendation of the Fire Chief and approval of the Board, an employee may be placed at any step in the salary range for his or her class. 3. Salary on Promotion An employee, who is promoted to a position in a class with a higher salary range than the class in which he or she formerly occupied a position, shall receive the nearest higher monthly salary in the higher salary range that would constitute a minimum of five percent (5%) salary increase over his or her base salary rate, provided that no employee may receive a rate in excess of Step E of the promotional class. If the promotion occurs within sixty (60) days of a scheduled merit salary review date, the employee shall receive the merit increase (if otherwise entitled to it) and the promotional increase concurrently. The employee shall be given a new merit salary review date for purposes of future salary step advancement. The new date shall be based upon the effective date of promotion. 4. Salary on Demotion An employee who is demoted to a position in a class with a lower salary range shall receive a new merit salary review date based upon the effective date of the demotion and receive a salary in accordance with the following: a. Disciplinary demotion – any designated salary step in the lower salary range which will result in the employee’s receiving at least a five (5) percent reduction in pay. b. Non-disciplinary demotion – that salary step he or she would have received in the lower class if his or her services had been continuous in said lower class. 5. Salary on Transfer An employee who is transferred from one position to another in the same class or to another position in a similar class having the same salary range shall receive the same step in the salary range previously received and the merit salary review date shall not change. 6. Salary on Position Reclassification When an employee’s position is reclassified and the employee is appointed to the position, salary shall be determined as follows: a. If the position is reclassified to a class with a higher salary range than the former class, salary and merit salary review date shall be set in the same manner as if he or she had been promoted. Page 121 of 715 9 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 b. If the salary of the employee is the same or less than the maximum of the salary range of the new class and the salary range of the new class is the same as the previous class, the salary and merit salary review date will not change. c. If the salary of the employee is greater than the maximum of the range of the new class, the salary of the employee shall be designated as a “Y-rate” and shall not change during continuous regular service until the maximum of the salary range to which the class is assigned exceeds the salary of the employee. 7. Salary on Re-Employment An employee recalled after a layoff shall receive the same salary step in the range of the class which he or she was receiving upon layoff. 8. Salary on Rehire Upon rehire, an employee shall be placed at such salary step as may be recommended by the Supervisor and approved by the Fire Chief. The employee’s merit salary review date shall be based on the date of rehire. 9. Acting Pay Acting pay shall be one (1) step, approximately five percent (5%), above the affected employee’s base salary rate. To receive acting pay the employee must: a. Be formally assigned only doing the duties appropriate to the higher class. b. Subject to D below, at least fifteen (15) consecutive workdays, five (5) shifts for employees working twenty-four (24) hour shifts. Acting pay will be paid beginning with the sixteenth (16th) consecutive day worked in an acting capacity, sixth (6th) shift for employees working twenty-four (24) hour shifts. c. Subject to D below, if an employee is deployed on an assignment in a higher-class acting position, and that deployment/assignment extends past 120 hours, the acting employee will receive (1) step, approximately 5%, above his/her base salary rate for the entire deployment/assignment. d. In any instance where it is reasonably anticipated at the commencement of the acting assignment that the assignment is likely to extend beyond fifteen (15) consecutive workdays or five (5) shifts, the described five percent (5%) acting pay shall commence being earned from the first day/shift of the acting assignment. 10.Salary on Change in Range Assignment When a class is reassigned to either a higher or lower salary range by the Board, the salary of each incumbent in such a class on the date the reassignment is effective shall be adjusted to the step he or she was receiving in the former range. Page 122 of 715 10 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 11.Premium Pay Haz-Mat The number of personnel maintained on the Haz-Mat team is determined by the District. Personnel on the team must maintain their state certification, membership in the West End Hazardous Assistance Team, attend reasonable training sessions deemed necessary by the District, and agree to remain members of the District’s Haz- Mat Team for a period of 2 years unless removed earlier by the District. Training to maintain status on the team shall be at the District’s expense. Members who meet the above requirements shall be compensated for their involvement by being paid a dollar amount equal to five percent (5%) of Step E of the Fire Engineer class. 12.Bilingual Compensation Bargaining Unit members who qualify for bilingual pay shall be compensated at the rate of seventy-five dollars ($75.00) per month. Employees must pass an examination demonstrating their proficiency in the Spanish, Chinese, or Japanese languages. 13.Paramedic Compensation Regardless of the classification of unit members who are eligible for paramedic compensation, said compensation shall be the equivalent of 13.92% per month of Step E of the base salary of the Engineer Classification. Paramedic pay differential may be authorized for any of the company ranks of Firefighter, Fire Engineer or Fire Captain. Effective for employees hired after January 1, 2015, the paramedic pay differential may not be continued upon promotion according to District need and the discretion of the Fire Chief. 14.Field Training Officer The District agrees to provide a stipend that is equivalent to 9.3% percent of Step E of the Fire Captain class, to the Field Training Officer position, or employee who is charged with these duties. 15.Technical Rescue The number of personnel maintained on the Technical Rescue team is determined by the District. Personnel on the team must maintain all required certifications and attend reasonable training sessions deemed necessary by the District and agree to remain members of the District’s Technical Rescue Team for a period of 2 years, unless removed earlier by the District. Training to maintain status on the team shall be at the District’s expense. Members who meet the above requirements shall be compensated for their involvement by being paid a dollar amount equal to 5% per month of Step E of the Fire Engineer class. 16.Terrorism Liaison Officer Pay The District has determined there is a need to provide premium pay for the position of Terrorism Liaison Officer for Homeland Security reasons. This premium is being provided for the Safety Officer Training/Coordinator work for which they are Page 123 of 715 11 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 responsible. The Terrorism Liaison Officers will routinely and consistently instruct personnel in safety procedures and department standard operating guidelines based on current threats and anticipated modes of attack. The number of personnel receiving Terrorism Liaison Officer’s pay shall be determined by the District, but for the term of this MOU shall be a maximum of three (3) Firefighters. Personnel on the team must maintain all required certifications and attend reasonable training sessions deemed necessary by the District and agree to remain Terrorism Liaison Officers for a period of 2 years, unless removed earlier by the District. Training to maintain status on the team shall be at the District’s expense. Members who meet the above requirements shall be compensated for their involvement by being paid a dollar amount equal to 2.5% per month of Step E of the Fire Engineer class. 17.Education Incentive The District shall provide to employees an educational incentive equal to the following: Bachelor of Arts/Bachelor of Science or Fire Officer Certification =$317/month Master of Arts/Master of Science or Chief Officer Certification =$475/month Eligibility for the above-mentioned education incentive requires proof of graduation and receipt of degree from a college or university that is accredited by a national recognized accrediting agency approved by the United States Secretary of Education and found on the United States Department of Education website. Compliance with the Fire Officer/Chief Officer certification requires proof of satisfactory completion (C or better or “pass” in a pass/fail class) of all required classes for the Certification Track currently authorized and approved by the California State Fire Marshall for Fire Officer or Chief Officer. Degrees earned online shall be accompanied by a declaration under penalty of perjury that the subject employee personally performed all requirements for issuance of the degree. The Fire Chief’s determination regarding eligibility for an education incentive shall be final. The above-mentioned education incentives shall be non-cumulative, meaning that an employee who meets the highest recognized education incentive, which would be the Master of Arts/Master of Science or Chief Officer Certification, shall receive only one incentive pay regardless of whether they have also met the lower recognized education incentive also. Neither shall an employee receive education incentive pay or both a degree and a certification. 18.Stipend/Premium Pay Limitation No employees shall be eligible to collect more than two (2) simultaneous stipend/premium pay incentives of the following list: •Hazardous Materials •Paramedic •Technical Rescue Page 124 of 715 12 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 •Terrorism Liaison Officer § 3.Work Periods and Overtime A. Work Periods 1. Employees assigned to 24-hour shifts shall work a Kelly Schedule that consists of a 24-day rotation pursuant to section 207(k) of the Fair Labor Standards Act (FLSA) as follows: SUN MON TUES WED THURS FRI SAT On Off On Off On Off On Off Off Off Off On Off On Off On Off On Off Off Off Off Off Off 2. The pay period for shift personnel is 14 days. Overtime is paid for time worked in excess of one hundred six (106) hours in the pay period. 3. The work period for forty (40) hour personnel is seven (7) days with overtime being time worked in excess of forty (40) hours in the period. 4. Pursuant to Section 7(k) of the Fair Labor Standards Act (FLSA), newly hired, trainee firefighters who are students at the RCFD Fire Academy shall work a 48- hour per week schedule, inclusive of a paid meal period and breaks. B. Work Shifts 1. All twenty-four (24) hour work shifts begin at 0800 and end at 0800 the following day, twenty-four (24) hours thereafter. 2. Personnel assigned to a forty (40) hour schedule shall work Monday through Thursday from 0700 to 1800 inclusive of paid breaks and unpaid sixty (60) minute meal period. Employees who experience hardship due to childcare issues, may request alteration of their schedule by taking a ½ hour lunch and arriving at work ½ hour late or leaving work ½ hour early. Additionally, employees who carpool at 60% of the pay period and 60% of the distance into their assigned workplace are eligible to leave ½ hour early from work or arrive ½ hour late. C. Flex Time 1. The work schedules of employees assigned to other than fire suppression are subject to change depending on needs of the service or desires of the concerned employee(s) (see item 3). 2. The District shall not change work schedules when the sole purpose of the change is to avoid payment of time and one-half for overtime. This however, is not to be Page 125 of 715 13 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 interpreted as preventing a schedule change upon the mutual agreement of the District and affected employee. 3. Employees may request schedule changes to address personal interests. Whenever possible such requests will be accommodated, provided however, that needs of the service as determined by the District will take precedence over employee preferences. 4. The District will not affect schedule changes but for good and sufficient cause. D. Overtime Pay 1. The rate of pay for overtime hours worked shall be at the rate of time and one-half (1.5) the regular rate of pay, for those employees eligible for overtime. 2. For purposes of computing overtime pay under the Fair Labor Standards Act, military leave shall not be considered hours worked. Holiday, vacation, sick, and injury leaves as well as time spent in a criminal or civil proceeding pursuant to a subpoena issued in connection with the employee’s employment with the District shall be considered as hours worked for purposes of computing overtime. 3. For the purposes of this section, work time shall not include traveling to and from the normal work site. 4. Employees required (held over) to work more than fifteen (15) minutes overtime shall be compensated for a minimum of one (1) hour. Any overtime worked in excess of one (1) hour will be paid in half hour increments. Provisions shall be made for an equitable distribution of overtime, consistent with efficient operations of the District. 5. Employees may be subject to recall to be placed on overtime to fill vacancies created by District wide training programs of a class wide nature. Employees must receive at least two (2) weeks’ notice of recall. E. Call Back A unit employee called back to work during off-duty hours shall be paid at time and one-half (1.5) the employees’ regular rate of pay with a minimum of two (2) hours for each such call back. Work shall be paid in half hour increments (work over fifteen (15) minutes constitutes one half hour). This section not to be interpreted as requiring said minimum in the event of an extend workday or when the employee begins his or her regular work shift before the normal starting time. § 4.Uniform Allowance A. The District shall provide four (4) sets of work uniforms for each employee who is required to wear a uniform prior to his or her start date. The value of these initial Page 126 of 715 14 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 uniforms provided shall be reported to CalPERS as compensation in accordance with applicable CalPERS requirements. Suppression members must buy their own Class A uniforms at the completion of probation. B. The District shall pay each employee a uniform allowance of $1,302 annually in July. § 5.Employee Group Insurance District agrees to provide group insurance plans in accordance with the following, and in accordance with Resolution FD 08-013, which is incorporated into this MOU by reference: A.Health Insurance 1.District will provide medical insurance through the State of California Public Employee’s Medical and Hospital Care Program (PEMHCA). 2.District shall provide fully paid employee and family health insurance for all existing full-time and retired employees as of November 17, 1994. Such health benefits are vested for all full-time continuous and retired employees as of November 17, 1994. 3.District shall provide paid employee and family health insurance for all full-time employees hired after November 17, 1994, at the monthly amount equal to the average eligible “Public Employees Medical and Hospital Care Program” (PEMHCA) medical rates available to active Local 2274 members covering San Bernardino County. The monthly contribution amount averages will be calculated annually during the open enrollment period with changes going into effect when the new rates go into effect. 4.All new full-time employees hired after November 17, 1994, shall be responsible for paying their premiums for medical insurance through the State of California Public Employees Medical and Hospital Care Program, upon retirement. 5.Cash Compensation in lieu of medical benefits in the amounts of $200.00 for single employees or $300.00 for employee’s dependents, may be provided to those employees that can provide the following: (1) proof that the employee and all individuals for whom the employee intends to claim a personal exemption deduction for the taxable year or years that begin or end in or with the District’s plan year to which the opt out applies (“tax family”), have or will have minimum essential coverage through another source (other than coverage in the individual market, whether or not obtained through Covered California) for the plan year to which the opt out arrangement applies (“opt out period”); and (2) the employee must sign an attestation that the employee and his/her tax family have or will have such minimum essential coverage for the opt out period. An employee must provide the attestation every plan year at Page 127 of 715 15 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 open enrollment, within 60 days of the date of hire, or within 30 days after the start of the plan year. The opt-out payment cannot be made and the District will not in fact make payment if the employer knows that the employee or tax family member doesn’t have such alternative coverage, or if the conditions in this paragraph are not otherwise satisfied. Selection of compensation shall be at the employee’s discretion. The employee may re-enter the Districts health plan at any time. 6.Affordable Care Act (ACA) Reopener. The District may reopen negotiations on the issue of health insurance benefits to address changes to or the elimination of the ACA and in order to avoid penalties or taxes under the ACA or other statutory scheme that may result from an interpretation of the ACA or other statutory scheme by the Internal Revenue Service or other federal agency (including, but not limited to, a revenue ruling, regulation or other guidance) or state agency, or a ruling by a court of competent jurisdiction. These negotiations will not result in a reduction in the amount the District provides for employee health coverage. B.Dental Insurance District shall continue to provide fully paid employee and family dental insurance plan for all full-time employees. C.Vision Insurance The District shall continue to provide vision care coverage for all full-time employees. D.Life Insurance All full-time employees shall be provided a term life insurance policy of $50,000, paid by District. § 6.Retirement Plan A. Benefits District is enrolled in the State of California Public Employee’s Retirement System. Except as described herein, all benefits provided District employees under the District’s Plan are paid by the District. Present benefits for public safety employees include the following: 1. Tier 1 - Employees hired prior to July 1, 2011: § 21362.2 3% at 50 Full Formula § 21574 4th Level 1959 Survivor § 20042 1 Year Final Compensation Page 128 of 715 16 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 Employees pay 9% of the normal CalPERS member contribution. 2. Tier 2 - Employees hired on or after 7/1/11 and through 12/31/12, and Classic PERS members, as defined by PERS, who are hired on or after January 1, 2013: § 21363.3 3% at 55 Full Formula § 21574 4th Level 1959 Survivor § 20037 3 Year Final Compensation Employees pay 9% of the normal CalPERS member contribution. 3. Employees who are New PERS Members, as defined by PERS, who are hired on or after January 1, 2013: Employees are classified as New Members of PERS when they meet the definition of a "new member" for purposes of retirement pension benefits pursuant to the Public Employees’ Pension Reform Act of 2013. Generally, this includes employees that were hired into a regular position on or after January 1, 2013, or former PERS members who have more than a six-month break in service. CalPERS ultimately determines who is a new member in compliance with the law. Employees who are classified as New Members shall be eligible for the 2.7% at 57 Formula, 3-year final compensation average. The employee contribution for new members shall be one-half the normal cost, as determined by CalPERS. As of the effective date of this MOU, the required employee contribution for new members is 11.5% of reportable compensation. This amount will be adjusted periodically by CalPERS, and the District employee contribution adjusted accordingly per state statute. The District has adopted a resolution providing that all employee CalPERS contributions shall be deducted on a pre-tax basis per IRC 414(h)(2). It is understood that all contributions paid by the employee as described in Parts 1 through 2 above shall be calculated based upon the pay rate (i.e. full base salary of the employee), plus any additional special compensation, including any Employer Paid Member Contributions (EPMC), and as described above in Part 3 above, on the pensionable compensation as defined in the California Public Employee’s Pension Reform Act of 2013 (”PEPRA”). The District adopted a resolution providing that all employee CalPERS contributions shall be deducted on a pre-tax basis to the extent permitted by law or IRS regulation. All employee payments of the employer share are done pursuant to Government Code Section 20516(f). Page 129 of 715 17 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 B. Military Service Buy-Back District provides for employees to buy back military service credit at the employee’s own expense pursuant to PERS regulations. C. CalPERS Cost Sharing – (Classic Members) Effective the first full pay period in July 2023, Classic CalPERS members contribute 1% of compensation earnable via payroll withholding as cost sharing of the employer contributions required by CalPERS. The cost sharing contributions shall be made pursuant to Government Code section 20516(f). Effective the first full pay period in July 2025, cost sharing contributions by Classic CalPERS members shall fluctuate up or down by the same percentage change that CalPERS may make, from time to time, to the employee contribution rate of PEPRA members. Any modification to the Classic member cost sharing rate would occur, if at all, with the first full pay period starting in July 2025, and would be based on the CalPERS valuation for the fiscal year 2025-2026. The Classic member cost-sharing amount shall fluctuate at the start of each subsequent fiscal year based on changes to the PEPRA rate set out in the CalPERS valuation for that fiscal year. The amount of Classic member cost sharing shall be capped at a maximum of 3% of compensation earnable and at a minimum of 0%. For example, if the CalPERS valuation for the fiscal year 2025-2026 requires an increase in PEPRA member contributions of .25%, the Classic member cost sharing shall increase from 1% to 1.25% of compensation earnable. The cost-sharing contributions shall be made pursuant to Government Code section 20516(f). This in no way affects the employee share of 9% that Classic employees contribute towards the cost of their retirement or the amount that PEPRA members contribute towards the employer/member share that is set by CalPERS. § 7.Work Related Injuries All unit employees are entitled to full salary and benefits when they sustain an on-the- job work-related injury for up to one (1) year. (See: California Labor Code §4850 for provisions). Although §4850 covers only safety personnel, District is extending this same benefit to non-safety employees. Temporary disability payments received during any injury period shall be returned to District. § 8.Carpooling Those employees participating in a carpool during going to and from their residence and work site shall not be in receipt of a reduced workday. Rather, those employees participating in a “carpool” shall be accorded the following benefit: Eligible carpool employees shall be regular, full-time employees who voluntarily participate in and file a “rideshare application agreement”. Eligibility for ride-share related benefits is conditioned upon: Page 130 of 715 18 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 1. Each affected regular and full-time employee shall ride-share with another person(s) in a car or vanpool. 2. In the alternative, each affected regular and full-time employee shall drive to and from work other than in an automobile. For example, such transportation may include a bicycle, public transportation, or walking. 3. Eligibility for rideshare benefits shall be conditioned upon 1) the regular and full- time employee participating 60% of the total workdays during a given month, 2) ride-sharing for at least 60% of the commute distance, and 3) ride-sharing between the hours of 6 and 10 a.m. of the employee’s scheduled work shift. Individuals meeting the above qualifications shall earn $2 for every day that the employee rideshares, paid at the end of each quarter. Further, the City is desirous of devising some type of “drawing” to provide a singular person on a monthly basis with an item of value in recognition of ridesharing. § 9.IRS 125 Plan District shall implement authorized pre-tax payroll deduction of out-of-pocket medical contribution premiums. Said pre-tax payroll deduction shall not only be used for the purpose of paying the difference between the amount of District funded premiums for District-provided health insurance plans, and the amount of out-of-pocket premium payments borne by the employee regarding District-provided plans. § 10.Voluntary Employee Benefit Association The City has established a Voluntary Employee Benefit Association (VEBA) through the California Government Voluntary Employee Benefit Association to assist employees with planning for future healthcare expenses. Represented employees are allowed a one-time election to opt into the plan. Represented employees shall be eligible to participate in the plan according to a schedule to be established as an addendum to this MOU. Contributions to the Plan shall be made as District contributions through a salary reduction arrangement and are made on a pre-tax basis in accordance with IRS provisions. The District will contribute 2% of base salary per pay period. Example: a biweekly base pay of $2,000 equals a biweekly contribution of $40. At the discretion of the Union, employee contributions may be amended once per year provided that such amendment is permitted by IRS regulations and in conformity with the Plan Document. § 11.Deferred Compensation 1. 457 Plan Effective the first full pay period in August 2019, bargaining unit members may continue to contribute to the 457 plan, however; the Fire District will no longer match contributions. Page 131 of 715 19 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 2. 401(a) Plan Effective the first full pay period in August 2019, the Fire District will establish and contribute 2% of base salary per pay period. ARTICLE III LEAVES § 1.Holidays A. Employees shall accrue holiday time as follows: Type of Personnel Per Holiday Annually Maximum Accrual Shift Personnel (56- hour work schedule) 12 hours 168 hours 216 hours 40-hour Personnel 10 hours 140 hours 180 hours B. Holidays are those days which District designates as observed holidays. Holiday leave is a right, earned as a condition of employment, to a leave of absence with pay. The holidays designated by District for the term of this contract are as follows: 40 Hour Personnel July 4 Independence Day September Labor Day (1st Monday) November 11 Veterans Day November Thanksgiving (4th Thursday) November The day following Thanksgiving December 24 The day preceding Christmas December 25 Christmas January 1 New Years Day January Martin Luther King's Birthday (3rd Monday) February President's Day (3rd Monday) May Memorial Day (last Monday) Three (3) discretionary (floating) days may be taken by an employee at his or her convenience, subject to approval by the supervisor. The thirty (30) hours for the three (3) floating holidays shall be credited to the employee at the start of pay period No. 1 of each fiscal year. Whenever a holiday falls on a Sunday, the following Monday shall be observed as a holiday. Whenever a holiday falls on a Friday or Saturday, the preceding Thursday shall be observed as the holiday. Page 132 of 715 20 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 56 Hour Personnel July 4 Independence Day September Labor Day (1st Monday) September Admissions Day October 12 Columbus Day November 11 Veterans Day November Thanksgiving (4th Thursday) November The day following Thanksgiving December 24 The day preceding Christmas December 25 Christmas January 1 New Years Day January Martin Luther King's Birthday (3rd Monday) February 12 Lincoln’s Birthday February 22 Washington’s Birthday May Memorial Day (last Monday) C. No District employee will be allowed to exceed the maximum accrual at any time. As excess holiday time is earned, it must either be taken as time off or be paid to the employee by District. D. Holiday time shall be accrued annually beginning with the first pay period of the fiscal year within the pay period which it occurs. Beginning in calendar year 2022. the two December holidays will accrue on November 30 of each year. 1. Beginning December 1, 2021, and annually thereafter, any employee that wants to have the District buy back holiday hours shall make an irrevocable election to do so. The irrevocable election shall be submitted in writing to the City’s Human resources Department on or before December 15 and shall indicate the number of hours of holiday that the employee expects to earn in the following calendar year that the employee wants the District to buy back in December (between first and second pay period). Regardless of the number of hours requested to be cashed out, the most the District can cash out is the number of hours accrued and available in that calendar year to date. 2. Holidays may be used as scheduled time off with the approval of the Supervisor. E. District employees will be advised in writing, within the pay period prior to the time that maximum holiday accrual is reached or that they are approaching their maximum accrual. F. Any employee who is on vacation or sick leave when a holiday occurs will not have that holiday charged against his or her vacation or sick leave. Page 133 of 715 21 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 G. Forty (40) hour personnel who obtain prior approval from their immediate supervisor to work a holiday will be allowed to bank that holiday at straight time. If a 40-hour employee who is eligible to receive overtime compensation is recalled to work on a holiday, that holiday will be banked at time and a half (1.5) for the number of hours actually worked that day. § 2.Vacation Leave A. Vacation Leave is a right to a leave of absence with pay. It is earned as a condition of employment. All full-time employees shall, with continuous service, accrue working days of vacation monthly according to the following schedule: 40-hour Personnel Years of Completed Service Annual Accrual Maximum Accrual Pay Period Accrual Rates 1-3 years 85.72 hours 192.0 3.297 4-7 years 128.57 hours 272.0 4.945 8-10 years 171.43 hours 353.0 6.593 11-14 years 188.58 hours 353.0 7.253 15-19 years 205.72 hours 353.0 7.912 20-24 years 222.86 hours 353.0 8.572 25+ years 240.00 hours 353.0 9.231 Shift Personnel Years of Completed Service Annual Accrual Maximum Accrual Pay Period Accrual Rates 1-3 years 120 hours/5 shifts 288.0 4.615 4-7 years 180 hours/7.5 shifts 408.0 6.923 8-10 years 240 hours/10 shifts 528.0 9.231 11-14 years 264 hours/11 shifts 528.0 10.154 15-19 years 288 hours/12 shifts 528.0 11.077 20-24 years 312 hours/ 13 shifts 528.0 12.002 25+ years 336 hours/14 shifts 528.0 12.923 B. An employee who, as of July 1 of any given year, has completed 10,15, 20 or 25 years of service shall receive a onetime credit of 24 hours of vacation in addition to the employee’s annual accrual of vacation, if a shift employee, or 10 hours, if a 40-hour employee. The employee shall, beginning the 11th, 16th, 21st, and 26th year, resume accruing vacation at the appropriate pay period accrual rate. C. The District will notify employees, in writing, within the pay period prior to the time that maximum vacation accrual will be reached that the accrual is approaching that Page 134 of 715 22 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 maximum. The employee will then be required to (1) schedule time off or, (2) receive pay in lieu of time off so as to not exceed the maximum accrual. D. Any full-time employee who is out about to terminate employment and has earned vacation time to his or her credit, shall be paid for such vacation time on the effective date of such termination. When separation is caused by death of an employee, payment shall be made to the estate of such employee. § 3.Sick Leave Sick leave is the authorized absence from duty of an employee because of physical or mental illness, injury, pregnancy, confirmed exposure to a serious contagious disease, or for a medical, optical, or dental appointment. A. Accrual All unit employees shall accrue sick leave as follows: Personnel Monthly Annual Accrual Max. Accrual 40-hour Personnel 10 hours 120 hours No limit Shift Personnel 12 hours (1/2 shift) 144 hours (6 shifts) No limit B. Use 1. Sick Leave with pay may be used for: a. Any bona fide illness or injury. b. Quarantine due to exposure to contagious disease. c. Any treatment or examination included to, but not limited to, medical, dental, eye, or psychiatric examinations. d. Not more than twelve (12) days for 40-hour employees or six (6) shifts for shift personnel of sick leave each calendar year in case an employee’s presence is required elsewhere because of sickness, disability, or childbirth of a member of his/her immediate family, as defined in District Personnel Rules. 2. Types of Sick Leave Use a. Personal Sick Leave Employees can use sick leave for personal illness, injury, a health-related reason (such as the diagnosis, care or treatment of a health condition), or preventive care. b. Family Sick Leave Page 135 of 715 23 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 Employees can use sick leave for the illness or injury of a health-related reason (such as the diagnosis, care or treatment of a health condition), or preventive care of a qualified family member. For the purpose of Family Sick Leave, a qualified member means the employee's: child (includes any age or dependency status, or for whom the employee is a legal ward or stands in loco parentis), parent (includes person who stood in loco parentis of the employee as a child), parent-in- law, spouse, registered domestic partner, grandparent, grandparent-in-law, great-grandparent, great-grandparent-in- law, grandchild, great-grandchild, or sibling. c. Other Statutory Use Sick leave can be used to cover an absence for an employee who is victim of domestic violence, sexual assault, or stalking to: 1. Obtain or attempt to obtain a temporary restraining order or other court assistance to help ensure the health, safety, or welfare of the employee or their child(ren). 2. Obtain medical attention or psychological counseling; services from a shelter; program or crisis center; or participate in safety planning or other actions to increase safety. 3. No employee shall be entitled to sick leave with pay while absent form duty for the following causes: a. Disability arising from sickness or injury purposely self-inflicted or caused by his or her own willful misconduct. b. Sickness or disability sustained while on leave of absence. 4. Sick leave shall not be used in lieu of or in addition to vacation. C. The Fire Chief reserves the right to require evidence in the form of a physician’s certificate whenever an employee is absent and requests sick leave for the period of absence, except personal leave (see Section 5). D. Any employee absent from work due to illness or accident, may at the discretion of the Fire Chief, be required to submit to a physical examination before returning to active duty. Such physical examination shall be performed by a physician specified by District and shall be at District expense. E. Termination of an employee’s continuous service, except by reason of retirement or lay-off for lack of work or funds shall abrogate all sick leave and no payment will be made by the District for sick leave accrued to the time of such termination regardless of whether or not such employee subsequently reenters District service. Page 136 of 715 24 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 F. Any employee incurring a serious injury or illness while on paid vacation leave may have those days of illness changed to sick leave with pay and vacation days restored accordingly, provided the employee has sufficient sick leave accrued and the period of illness is certified by a written doctor’s statement. G. Employees with ten (10) or more years of service shall be eligible to convert unused sick leave to vacation in accordance with the following: 1. Shift Employees who, in the preceding calendar year, accrued 180 to 144 (90 to 120 for 40-hour week employees) unused hours of sick leave earned in that preceding calendar year, may exercise the option of having one-half (1/2) of that unused sick leave accrued in the preceding year converted to vacation leave and the remainder carried over as accrued sick leave. 2. Those members of this unit who have accrued 72 to 108 (60 to 90 for 40-hour week employees) unused hours of sick leave earned in the preceding calendar year may exercise the option of having one-fourth (1/4) of the unused sick leave accrued in the preceding calendar year converted to vacation leave and the remainder carried over as accrued sick leave. 3. Any employee who qualifies to convert sick leave to vacation leave must submit a written request to the District on or before January 15th of the year in which the conversion is to be made. H. Upon the retirement of an employee, the employee may elect from one or more of the following options: •Sell back up to fifty percent (50%) of his/her accumulated unused sick leave at the employee's regular hourly rate of pay at retirement. • Designate accumulated unused sick leave for CalPERS service credit per Government Code Section 20965. • Apply the cash value of up to one hundred percent (100%) of accumulated unused sick leave to the employee's VEBA account (if. enrolled), at the employee's regular hourly rate of pay, as permitted by the VEBA plan. § 4.Conversion Factor The factor used to convert the accruals for forty (40) hour per week personnel to fifty- six (56) hour per week personnel will be: Vacation, sick leave, and holiday: Page 137 of 715 25 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 Work Week Basis Vacation 40 Hour 56 Hour Conversion Factor 1-3 years 85.72 120 1.5 4-7 years 128.57 180 1.5 8-10 years 171.43 240 1.5 11-19 years 188.58 264 1.57 20-24 years 196.58 288 1.57 25+ years 204.58 312 1.57 Holiday 140 168 1.5 Sick 120 144 1.5 (40 to 56) EXAMPLE (8-10 year employee) Employee Benefits Vacation = 100 hours Holiday = 72 hours Sick = 300 hours 472 total hours X 1.5 (factor) = 708 hours total Note: if an employee goes from a 56 to 40 hours basis, the conversion will be the reciprocal of 1.5 or .667 § 5.Personal Leave A. The employee shall be granted one (1) day paid personal leave to attend the funeral of a close relative not in the employee’s immediate family. B. An employee required to appear before a court for other than subpoenas due to actions as a District employee or jury duty will receive the necessary time as paid personal leave, providing: 1. He or she notifies his or her supervisor or Duty Chief in advance, with adequate time remaining so that a relief may be obtained. 2. The employee must return to duty within a reasonable time after the appearance. C. Personal Leave will be charged against any time the employee has accrued, such as sick leave, vacation, and compensatory time, at the employee’s option. D. Employees can use up to twenty (20) hours of accrued sick leave as personal leave. These twenty (20) hours can be used incrementally (i.e., 1 hour, ½ hour) throughout the fiscal year. Use this time for emergency situations requiring the employee’s attention and needs to be cleared with their supervisor when using this time. Page 138 of 715 26 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 § 6.Bereavement Leave When a death occurs in the family of a full-time employee, 40-hour personnel shall be granted up to 80 hours of bereavement leave with pay and Shift personnel shall be granted up to 112 hours of bereavement leave with pay. A death certificate or other acceptable evidence may be required by the City Manager or designee before leave is allowed. Family members are defined as follows: employee’s spouse or domestic partner, employee’s parents, employee’s grandparents, employee’s children, son-in- law, daughter-in-law, employee’s siblings,or employee’s grandchildren, employee’s spouse or domestic partner’s parents, employee’s spouse or domestic partner’s grandparents, grandparents-in-law, brother-in-law, sister-in-law, employee’s spouse or domestic partner’s children, employee’s spouse’s grandchildren, or a blood relative residing with employee. The City Manager or designee shall approve such bereavement leave. (References to domestic partner refer to registered domestic partners, as defined by California Family Code Section 297.) 40-hour personnel are eligible for up to an additional forty (40) hours of bereavement leave in addition to the currently provided eighty (80) hours and Shift personnel are eligible for up to an additional fifty-six (56) hours of bereavement leave, in addition to the currently provided one hundred and twelve (112) hours, when the bereavement leave is related to the employee’s spouse or domestic partner, employee’s parents, employee’s children, son-in-law, daughter-in-law, or employee’s siblings, employee’s spouse or domestic partner’s parents, employee’s spouse or domestic partner’s children, or a blood relative residing with the employee. The parties agree to review any usage concerns in June 2024. § 7.Compensatory Time A. In lieu of overtime pay, a unit employee, at the employee’s option, may be compensated with compensatory time off (CTO). CTO will accrue at the rate of one and one-half hours for each overtime hour worked. An employee may accumulate a maximum of 144 hours of CTO. Once an employee accumulates 144 hours of CTO, any additional overtime hours will be paid to the employee at the employee’s regular rate of pay as of the end of the fiscal year in June, and then the balance in the CTO accounts will be reduced to zero hours. CTO balance must be cashed out on the last pay period in June of a given fiscal year. Annually, any employee that wants to have the District buy back CTO hours at the “Holiday/Vacation/Compensation Time” shall make an irrevocable election to do so. The irrevocable election shall be submitted in writing to the City’s Human Resources Department on or before December 15 and shall indicate the number of hours of CTO that the employee expects to earn in the following calendar year between July and the first payday in November that the employee wants the District to buy back in November up to 144 hours (between the first and second payday of the month). Regardless of the number of hours requested to be cashed out, the most the District can cash out is the number of hours accrued and available in that calendar year to date. Page 139 of 715 27 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 B. Compensatory time may be earned for required attendance at special meetings of the Board of Directors and District Committees, except when such meetings are held in lieu of a regularly scheduled meeting or when such meetings are called and/or scheduled as part of the annual budget preparation process and annual audit. C. Compensatory time may also be earned for special and/or unusual work situation not provided for in the preceding paragraphs. § 8.Military A. Every employee who is a member of a state or federal reserve military unit shall be entitled to be absent from service with District while engaged in the performance of ordered military duty and while going to or returning from such duty in accordance with the laws of the State of California or federal government. B. Employees are entitled to thirty (30) days paid military leave in any one fiscal year, provided they have been employed by the District for one (1) year prior to this leave. An employee that serves in the California National Guard shall be entitled to 30 days paid military leave for each instance of emergency activation. Any employee with less than one (1) year of service must use accrued annual leave or compensatory time if he or she wishes to receive normal pay. C. Employees who are called or volunteer for service with the armed forces of the United States shall be entitled to reinstatement to their former positions. Upon application for reinstatement, the individual must display a certificate showing service was under honorable conditions. D. Any employee returning from service with the armed forces shall be entitled to such length of service seniority as would have been credited to them had they remained for that period of time with the District. E. An employee who was in a probationary period at the time of military leave shall, upon return, complete the remaining portion of the probationary period according to the then present rules. F. An employee promoted to fill a vacancy created by a person serving in the armed forces shall hold such position subject to the return of the veteran. The employee affected by the return shall be restored to his or her former position or one of a similar nature while the returning employee resumes the position he or she previously held. § 9.Jury Duty Any member of District who is called or required to serve as a trial juror may be absent from duty with District during the period of such service or while necessarily being Page 140 of 715 28 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 present in court as a result of such call. Such member on jury duty will continue to receive normal pay, provided he or she: A. Notifies his or her supervisor, in advance, with adequate time remaining so that relief may be obtained. B. Returned to duty within a reasonable time after being released with a signed certificate of service from the court stipulating the hours of service and release time. This certificate may be obtained by asking the court secretary or bailiff. The employee then forwards it to his or her supervisor or Deputy Chief. C. Pay received for service while absent from District must be turned over to District; however, pay received while off duty may be kept by the employee. D. All personnel called for jury duty must abide by all of the above rules and must return to work if dismissed before the end of their regular work shift. § 10.Civil Subpoena/Criminal Subpoena A. Civil Subpoena When members of the District have been served a civil subpoena to appear in court as a witness due to actions as a District employee, the following procedure shall be followed: 1. Personnel will be paid at their regular hourly rate while they are in court. Per Fire District Rules and Regulations such appearances shall be considered “hours worked” for purposes of computing overtime eligibility in accordance with applicable rules and Memorandum of Understanding. 2. District transportation will be provided when available. If the employee uses his or her own transportation, he or she will be reimbursed by District at the prevailing mileage rate. 3. If the employee is required to appear in a court that is outside the Rancho Cucamonga Fire Protection District and this appearance requires the employee to buy a meal and/or lodging, he or she will be reimbursed. If an extended appearance in court is necessary where lodging and meals would be required, authorization shall be obtained from the department head. B. Criminal Subpoena 1. Pursuant to California Penal Code 1326 et. seq., if an employee is served with a criminal subpoena, the employee will be paid at the regular hourly rate while in court. Per Fire District Rules and Regulations such appearances shall be considered “hours worked” for purposes of computing overtime eligibility in accordance with applicable rules and Memorandum of Understanding. Page 141 of 715 29 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 2. District transportation will be provided when available. If the employee uses their own transportation, they will be reimbursed by District at the prevailing mileage rate. 3. If the employee is required to appear in court outside the Rancho Cucamonga Fire Protection District and this appearance requires the employee to buy a meal, he or she will be reimbursed. If an extended appearance in court is necessary where lodging and meals would be required, authorization shall be obtained from the department head. 4. A criminal subpoena need not have a court stamp affixed. § 11.Leaves of Absence without Pay A. Upon the written request of the employee, a leave of absence may be granted for a period not to exceed thirty (30) days by the Fire Chief, or a period not to exceed one (1) year by the Board of Directors. B. Failure of the employee to return to his or her employment upon the termination of an authorized leave of absence shall constitute a separation from service of that employee. C. Leave of absence without pay granted by the Board shall not be construed as a break in service or employment. During these periods, vacation, holiday, or sick leave credits shall not accrue. An employee reinstated after a leave of absence without pay shall receive the same step in the salary range received when he or she began the leave of absence. Time spent on such leave without pay shall not count toward service for increases within the salary range. For purposes of this section, the employee's merit increase eligibility date shall be adjusted to the date of reinstatement. D. An employee on an approved leave of absence without pay may continue medical insurance coverage by paying the full cost to District, in advance, for each month, or portion thereof, of which he or she is absent. § 12.Association Business The Association president, or others designated by him or her (up to a maximum of seven representatives), shall be permitted reasonable time off without loss of pay for the conduct of Associate business, including, but not limited to, negotiations, processing grievances, representing employees in disciplinary matters, and meeting with District personnel. Representatives of the Association shall be compensated for all hours spent in actual negotiations with the District and meetings with district personnel, whether regularly scheduled to work that day or not. § 13.Union Leave Bank In addition to any other paid time off provided to the Association’s Board of Directors under any other provisions of this MOU, existing rules, regulations or practices, there is hereby created a Union Leave bank for the sole and exclusive use of the Union. Page 142 of 715 30 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 Each active member of the Union shall have 0.9230 hours of vacation leave irrevocably deducted from his or her vacation or holiday leave accrual each biweekly pay period. Twice each year, in January and July, the Union Executive Board shall have the authority to amend the deduction described above. If such an amendment is approved, the union President shall notify the Finance Director in writing of the new deduction amount. The new deductions shall be accomplished as soon as practical. The District will deduct the hours from vacation time first, then from accrued holiday time. A member can notify the Finance Director by the first Monday in August of each year if they want the time deducted from accrued holiday leave time first, then accrued vacation leave time. Said hours shall be deposited into the Union Leave Bank. Each pay period the Finance Director, or his or her designee, shall furnish the Union President, or his or her designee, with an accounting of the Union Leave Bank in the form of a Leave Hours Balance Report. The report will include that pay period’s beginning balance, new deposits, hours used, and the remaining balance of hours. A Union member desiring to use available Union Leave must obtain a memo authorizing the use of such leave from the President of the Union, or his or her designee. The authorization must specify the amount of time that is to be used and the business or activity that is to be used for. The memo authorizing the use of Union Leave time must be attached to the timecard in which the Union Leave time is requested. In no event will Union Leave be used for any activity, whatsoever, related to a City of Rancho Cucamonga City council election and/or City of Rancho Cucamonga ballot measure. Once approval is obtained, and if time is available in the Union Leave Bank, the Union member shall designate the time used on the timecard for the pay period as “Union Leave” and attach the memo approving the use of the time to the timecard. The Union member shall be paid at his or her regular rate of pay for each such time. Union Leave may only be used in increments of one hour. If the Union member will be absent from work on Union Leave, the member must follow the rules and procedures set forth in the Situational Staffing Policy (1-012). In the event the Union is dissolved, or the Union Leave Bank is discontinued by agreement of the parties, any remaining balance shall be distributed as vacation time evenly to all active employees of the Union at the time of such distribution. The distribution of hours will occur without regard to an individual employee’s regular rate of pay. At any time should the District’s budget analysis indicate a need to reduce administrative overtime programs, the use of the Union Leave Bank can be temporarily suspended by the Fire Chief, or his or her designee. The Fire Chief will analyze the use of administrative time at the end of each quarter, using the following gauges: i) 1st Quarter no more than 24%; ii) 2nd Quarter no more than 47%; iii) 3rd Quarter no more than 74%; and iv) 4th Quarter within the adopted budget. If at the end of any quarter the respective gauge is exceeded, the District will notify the Union President in writing of the need to temporarily suspend the use of the Union Leave bank, except for previously approved uses. Such notification will become effective at the beginning of Page 143 of 715 31 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 the next pay period following the date of the notification. The District will analyze the overtime expenditures every 60 days from the date of the written notification and will determine when the temporary suspension can be removed. The temporary suspension will automatically be removed at the beginning of the first pay period that falls into a new fiscal year. The District shall jointly administer the Union Leave Bank with Union, as specified herein, without charge to the Union or its membership. The District will be provided, on an initial basis for all current employees, and following that on an ongoing basis for new employees, written confirmation that the Union member(s) have agreed to subject themselves to the Union Leave Bank requirements. § 14.Natal and Adoption Pay A. Natal and Adoption Leave with Pay Employees are granted up to 120 hours of natal and adoption leave with pay for the birth or adoption of a child, however, use of 120 hours does not extend any time charged under FMLA or CFRA or additional state and federal laws. Any paid time required beyond this initial 120 hours must be charged to sick leave, vacation, compensatory or floating holiday time. B. Natal and Adoption Leave without Pay The District shall provide employees up to four months natal and adoption leave for the birth or adoption of a child; such leave shall be pursuant to the provisions of the California Pregnancy Disability Act ("PDA"; California Government Code section 12945), if applicable. The District's PDA policy is incorporated herein by reference. Employees on this leave of absence without pay beyond the four-month period will be responsible for the payment of medical, dental and optical premiums to keep the coverage in force during the leave of absence. § 15.Family and Medical Leave Unit employees may be eligible to take a leave of absence of up to twelve weeks for certain reasons under the provisions of the federal Family and Medical Leave Act (FMLA). The District has developed a separate policy to comply with this law. The FMLA policy is incorporated herein by reference. ARTICLE IV GRIEVANCE PROCEDURE § 1.Purpose This article is intended to provide a fair and orderly procedure for the resolution of employee grievances involving wages, hours and terms and conditions of employment. A grievance is a claimed violation, misinterpretation, misapplication, or noncompliance with existing District codes, resolutions, rules, regulations, or this document. This grievance procedure shall not apply to disciplinary matters or to reviews of performance evaluation reports or to discharge of probationary employees. Page 144 of 715 32 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 Disciplinary matters include all warnings, written reprimands, suspensions, reductions in pay, demotions, dismissal or any other action which consists of a taking of property as said term is defined by the courts in the disciplinary context § 2.Objectives The grievance procedure is established to accomplish the following objectives: A. To settle disagreements at the employee-supervisor level, informally if possible. B. To provide an orderly procedure to handle grievances. C. To resolve grievances as quickly as possible. D. To correct, if possible, the cause of grievances to prevent future similar complaints. E. To provide for a two-way system of communication by making it possible for levels of supervision to address problems, complaints, and questions raised by employees. F. To reduce the number of grievances by allowing them to be expressed and thereby adjusted and eliminated. G. To promote harmonious relations generally among employees, their supervisor and the administrative staff. H. To assure fair and equitable treatment for all employees. § 3.General Provisions A. Preparation of a grievance will be accomplished in such a manner and at a time that will not interfere with normally required work procedures. B. Regarding a pending grievance, no individual or entity acting on behalf of the grievant shall contact any individual member of the Board of Directors, nor the Board of Directors as an entity, verbally, in writing, and/or through any other means of verbal, written or electronic communication. C. Failure of the grievant to comply with time limitations specified in the grievance procedure shall constitute a withdrawal of the grievance, except upon a showing of good cause for such failure. Failure of District supervisory or administrative staff to comply with specified time limitations shall permit the grievant to proceed to the next step in the procedure. EXCEPTION: Notwithstanding the above, an extension of time is permitted with the mutual consent of both parties. Mutually agreed upon extensions of time shall be evidence in writing. D. In the event a grievant elects to represent himself or herself or is represented by counsel other than that provided by the employee organization, the employee Page 145 of 715 33 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 organization shall be apprised of the nature and resolution of the grievance if the issues involved are within the scope of said organization's representation rights. E. If an individual named in a dispute is unavailable within the time period specified in these procedures, time limitations can be extended by mutual agreement of the representatives of the respective parties. F. Any period of time specified in this rule for the giving of notice or taking of any action exclude weekends and holidays. A “day” as used in this Article shall mean a calendar day. If the last date for action falls on a day that administrative offices are closed, the last date for action shall be extended to the next day during which administrative offices are opened. § 4.Informal Grievance Procedure Most problems or complaints can be settled if the employee will promptly, informally and amicably discuss them with his or her immediate supervisor. Such an initial discussion shall precede any use of the formal grievance procedure. If the immediate supervisor fails to reply to the employee within three (3) days, or the employee is not satisfied with the decision, the employee may utilize the Formal Grievance Procedure. § 5.Formal Grievance Procedure A. Step I The employee and/or representative shall present the grievance, in writing and signed, to his or her immediate supervisor within thirty (30) days of the date that cause for grievance arises. An official grievance form must be used stating names, dates, times, place, and nature of grievance. The employee's supervisor shall attempt to resolve the grievance with the employee and shall submit his or her decision in writing to the employee within ten (10) days after receipt of the grievance. The employee shall have the right to appeal the decision of the supervisor to the Fire Chief. B. Step II 1. If the grievance is not resolved to the satisfaction of the employee, the grievant has ten (10) days following receipt of the written response from his or her supervisor to file a written appeal to the Fire Chief or designated representative. 2. Written appeal to the Fire Chief or designated representative shall consist of the statement of the grievance and shall include a statement by the grievant's representative setting forth the reasons why the response of the employee's supervisor did not satisfactorily resolve the grievance and an indication of the action desired by the grievant. 3. After submission of the written appeal, the Fire Chief or designee shall reply within three (3) days, in writing, to the grievant regarding the grievance. In event of rejection, reasons for so doing will be included in the response. Page 146 of 715 34 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 4. The decision by the Fire Chief or designee shall address whether or not the grievance of the employee is grievable pursuant to the definition set forth in § 1 above and /or is timely filed or otherwise administratively prosecuted in a timely manner. In the event that the Fire Chief or designee determines that the employee’s grievance is not defines as such by § 1 above and/or is not filed in a timely manner, the Fire Chief or designee shall advise the employee that the matter is not grievable and the grievance shall proceed no further unless or until on application by the employee, a judgement is entered at the trial court level, indicative of the matter being jurisdictionally grievable pursuant to the definitions set forth in § 1 above and/or pursuant to requirements of timeliness. C. Step III If the grievance is not settled in Step II, binding arbitration may be invoked in accordance with the following: 1. The request for arbitration must be submitted with either ten (10) days of receipt of the decision of the Fire Chief, or of expiration of time for the Fire Chief to render a decision. 2. A “Fact Sheet” must be submitted to the arbitrator by both parties, stating the nature of the grievance and desired action. 3. The term “arbitrator”, as used herein, shall refer to a single arbitrator. 4. A list of five (5) arbitrators shall be requested from the California State Conciliation Service. The hearing arbitrator shall be chosen by an initial flip of a coin, with the winning side, Board or grievant, having the choice of either selecting the arbitrator or eliminating one (1) candidate. The turn shall then revert to the other side, who then can exercise the same option. This procedure continues until either an arbitrator is agreed upon or there is only one (1) candidate remaining. 5. The arbitrator so selected shall hold a hearing at a time and place convenient to the parties involved. Statements of position may be made by the parties, and witness may be called. 6. The location and time of the hearing shall be mutually agreed upon by both parties. If an agreement cannot be achieved, each party will submit their location and time to be drawn by chance. 7. All expenses which may be involved in the arbitration proceedings shall be borne by the parties equally; however, expenses relating to the calling of witnesses or the obtaining depositions or any other similar expenses associated with such proceedings shall be borne by the party at whose request such witnesses, or depositions are required. Page 147 of 715 35 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 8. Legal counsel may be obtained by either party if they so wish. Expenses for legal counsel shall be borne by the party obtaining such counsel. 9. Failure on the part of the District’s representative or grievant/grievant’s representative to appear in any case before an arbitrator, without good and sufficient cause, shall result in forfeiture of the case and responsibility for payment of all costs of arbitration borne by the party failing to appear. 10.The decision of the arbitrator shall be final and binding upon District and appellant. ARTICLE V DISCIPLINE District and Union have met and conferred and adopted a disciplinary procedure which is hereby incorporated by reference as though set forth in full. ARTICLE VI SAFETY § 1.Compliance District and employees in Association shall conform to and comply with all health, safety, and sanitation requirements imposed by District, state or federal law or regulations adopted under state or federal law. § 2.No Discrimination No employee shall be in any way discriminated against as a result of reporting any condition believed to be a violation of 1 of this Article V. § 3.Safety Equipment Should the employment duties of an employee in the unit, in the estimation of OSHA, require use of any equipment or gear to ensure the safety of the employee or others, District agrees to furnish such equipment or gear. § 4.Employee Responsibility In the course of performing their normally assigned work, employees will be alert to observe unsafe practices, equipment, and conditions; as well as environmental conditions in their immediate area which represent health hazards and will report such conditions to their immediate supervisor. All employees shall make certain that all power machinery is equipped with safety devices properly installed and in working condition and that co-workers use utmost care in the handling of tools and equipment. Employees shall report all accidents immediately to their immediate supervisors. Reports shall be submitted on forms provided by District. § 5.Minimum Staffing The District shall maintain a minimum staffing level. Staffing of companies and units with 30 personnel shall consist of the following: Page 148 of 715 36 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 A. Seven-three (3) person paramedic engine companies, consisting of 1 captain, 1 Engineer and 1 Firefighter with any one rank being a certified paramedic. B. Two four (4) person paramedic truck companies, consisting of 1 Captain, 1 Engineer and 2 Firefighters with any one rank being a certified paramedic. C. One (1) Captain Specialist The District shall maintain a minimum staffing of 1 training division position consisting of the following: A. One (1) Training Captain Any reduction in these levels must be agreed upon through the meet and confer process. § 6.Smoking Policy Employees in Union have agreed to accept and abide by the District “Smoking Policy,” as written and approved by the Chief. § 7.Weather Related Mandatory Recall The definition of the High Wind Warning, Red Flag Warning and Flash Flood Warning shall be made by the Fire Chief or his/her designee as follows: A. High Wind Warning: winds are sustained at 40 mph or more, and/or gusts are present at 58 mph or more and are expected in less than one day (24 hours). B. Red Flag Warning: winds are sustained at 25 mph or more and relative humidity is less than 15%, with conditions persisting more than six (6) hours and expected in less than one day (24 hours). This can also be released without the wind component for weather that is less than 10% relative humidity for longer than 10 hours. C. Flash Flood Warning Rain is sustained at 1/2” an hour, for longer than 1 hour, or ¼” per hour, for longer than 4 hours. When a warning is determined, the duty Battalion Chief shall have the authority to staff additional apparatus in conjunction with consultation from the Deputy of Fire Chief. Apparatus shall be utilized as best determined by the duty Battalion Chief or his or her designee. Staffing procedures shall be as follows: Page 149 of 715 37 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 1. If time permits, the on-duty Battalion Chief may contact the fire stations to solicit volunteers for the staffing of units as needed. 2. If no volunteers are available or additional personnel are needed, the on-duty Battalion Chief shall utilize the force hire list in Telestaff to recall personnel as staffing levels dictate. For additional staffing procedures, refer to Situational Staffing and Overtime Tracking Policy #1-012. 3. The on-duty Battalion Chief may hold off-going personnel until the individuals on the force hire list are contacted and arrive at their scheduled assignment. Once relieved, the individuals held over shall be released from their assignments. 4. All personnel who are assigned for these circumstances shall remain in their assigned position until the Battalion Chief or designee dictates that the potential threat has subsided or are relieved by personnel for the next operational period. 5. The overtime rate and time frames shall be paid per Section 3 D in the MOU. ARTICLE VII MANAGEMENT RIGHTS § 1.Scope of Rights It is understood and agreed that District possesses the sole right and authority to operate and direct the employees of District in all aspects, except as modified in this Memorandum of Understanding. These rights include, but are not limited to: A. The right to determine its mission, policies, and standards of service to be provided to the public; B. To plan, direct, control, and determine the operations or services to be conducted by employees of the District; C. To determine the methods, means, and number of personnel needed to carry out District’s mission; D. To direct the working forces; E. To hire, assign, or transfer employees within District; F. To promote, suspend, discipline, or discharge employees; G. To layoff or relieve employees due to lack of work or funds or for other legitimate reasons. (any provision within this MOU, City rules and regulations or any other policy or procedure promulgated by the City or any Department of the City which prohibits the imposition of layoffs, is deemed null and void); Page 150 of 715 38 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 H. To make, publish, and enforce rules and regulations; I. To introduce new or improved methods, equipment, or facilities; J. To contract out for goods and services; K. To take any and all actions as may be necessary to carry out the mission of District in situations of civil emergency as may be declared by the Board of Directors or Fire Chief; L. To schedule and assign work; M. To establish work and productivity standards. § 1.Emergency Conditions If in the sole discretion of the Board of Directors or Fire Chief, it is determined that extreme civil emergency conditions exist, including, but not limited to, riots, civil disorders, earthquakes, floods, or other similar catastrophes, the provisions of this MOU may be suspended during the time of the declared emergency, provided that wage rates and monetary fringe benefits shall not be suspended. ARTICLE VIII EMPLOYEE RIGHTS §1.Scope of Rights All employees shall have the following rights which may be exercised in accordance with State Law, applicable ordinances, rules and regulations: A.To The right to form, join and participate in the activities of employee organizations of their own choosing for the purpose of representation on all matters of employer-employee relations. B.The right to be free from interference, intimidation, restraint, coercion, discrimination, or reprisal on the part of an appointing authority, supervisor, other employees, or employee organization as a result of their exercise of rights granted in this Article. The provisions of Section 3500 et seq. of the Government Code are hereby incorporated as such provisions may apply to employees within the Fire Union Local 2274. §2.New Employee Orientation The Fire District shall provide thirty (30) minutes at a mutually agreeable time during the employee onboarding process for Union representative to meet with a new Union covered employee and present the benefits of being a member of the Union. Onboarding of new employees occurs during the first working day at the start of a new pay period up to 26 Page 151 of 715 39 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 times per year. The Fire District will provide a calendar before the start of a new year. A Union representative will have 30 minutes of uninterrupted time to meet with the new Union covered employee. Prior to the meeting, or in no case later than the meeting time, the Fire District will provide the designated Union representatives with all available information about the employees as required under AB 119 within 30 days of the employees start date and the District will provide the required information on all Union covered employees again as required under AB 119 at least three (3) times per year. ARTICLE VIII MAINTENANCE OF BENEFITS All wages, hours and terms and conditions of employment specifically provided for in this memorandum of understanding, shall remain in full force and effect during the term of the MOU, unless modified pursuant to written agreement of the parties. ARTICLE IX APPROVAL BY THE BOARD OF DIRECTORS This MOU is subject to approval by the Board of Directors of the District. The parties hereto agree to perform whatever acts are necessary both jointly and separately to urge the Board to approve and enforce this MOU in its entirety. Following approval of this MOU by the Board, its terms and conditions shall be implemented by appropriate ordinance, resolution, or other lawful action. ARTICLE X PROVISIONS OF LAW It is understood and agreed that this MOU and employees are subject to all current and future applicable Federal and State laws and regulations and the current provisions of District law. If any part or provisions of this MOU is in conflict or inconsistent with such applicable provisions of those Federal, State, or District enactments or is otherwise held to be invalid or unenforceable by any court of competent jurisdiction, such part or provision shall be suspended and superseded by such applicable law or regulations, and the remainder of this MOU shall not be affected thereby. If any substantive part or provision of this MOU is suspended or superseded, the parties agree to re-open negotiations regarding the suspended or superseded part or provisions with the understanding that the total compensation to employees under this MOU shall not be reduced or increased as a result of this Article. District and Association recognize that under this MOU and in personnel matters not covered in this contract, the current District Personnel Rules as amended and effective shall apply. The Personnel Rules applicable to the Association shall not be changed for the duration of this Agreement. ARTICLE XI TERM The term of this MOU shall run from July 1, 2023, through and including 11:59 p.m. on June 30, 2026. In the event either party wishes to negotiate a successor MOU, the parties agree that informal discussions and data sharing may commence on or about July 1, 2025, with Page 152 of 715 40 Fire Union MOU 2023-2026 – RESOLUTION NO. FD 2023-036 3 8 7 6 formal negotiations starting after the completion of the salary survey as outlined in Article II of this MOU. Union District _________________________________ _______________________________ Dated Dated _________________________________ _______________________________ Daniel Navarrette John R. Gillison President City Manager ________________________________ Jenifer Phillips Human Resources Director Page 153 of 715 DATE:July 19, 2023 TO:President and Members of the Board of Directors FROM:John R. Gillison, City Manager INITIATED BY:Robert Neiuber, Senior Human Resources Director Lucy Alvarez-Nunez, Management Analyst SUBJECT:Consideration to Adopt a Resolution Approving the Rancho Cucamonga Fire Protection District Salary Schedules for the Fiscal Year 2023-24. (RESOLUTION NO. FD 2023-033) (FIRE) RECOMMENDATION: Staff recommends the Fire Board adopt the attached resolution approving the fiscal year 2023- 24 salary schedules for job classifications employed by the Rancho Cucamonga Fire Protection District. BACKGROUND: The Fire Board traditionally adopts salary resolutions biannually for classifications employed by the Rancho Cucamonga Fire Protection District. These resolutions are updated twice a year to reflect changes in salaries, additions and deletions of classifications, changes in job titles, and other terms of employment. The Fire Board recently approved a Memorandum of Understanding (MOU) between the Rancho Cucamonga Fire Protection District (District) and the Fire Management Employees Group (Fire MEG) effective July 1, 2023, through June 30, 2026. This MOU includes an addendum which provides for the Fire Business Manager classification to move from the Fire Support Services Association (FSSA) bargaining unit to the Fire MEG bargaining unit effective the first full pay period following the negotiation and implementation of an Employer-Employee Relations Resolution (EERR). On July 5, 2023, the Fire Board adopted a resolution establishing orderly procedures for the administration of EERR between the District and its employee organizations. The Fire District and Firefighters Local 1932 (Fire Union) recently came to an agreement relative to a successor MOU. Upon the Fire Board’s adoption of a resolution approving the MOU, this agreement would provide for a cost-of-living adjustment effective the first full pay period in July 2023 and an equity adjustment effective the first full pay period in October 2023. Updates to the salary schedules include terms negotiated and agreed upon in the recently negotiated MOUs. Page 154 of 715 Page 2 1 9 3 9 ANALYSIS: The attached resolution adopts recently negotiated and approved changes in the Firefighters Local 2274 (Fire Union) and the Rancho Cucamonga Fire Management Employees Group (Fire MEG) Memorandum of Understanding. Changes to the Fire Union salary schedule include a 3.25% COLA effective the first full pay period in July 2023, and a 3.25% equity adjustment effective the first full pay period in October 2023. Changes to the Fire MEG salary schedule include the addition of the Fire Business Manager classification. The salary range is set equivalent to the Finance Manager’s salary range. Changes to the FSSA salary schedule include the deletion of the Fire Business Manager classification. All other Fire salary schedules, classifications, job titles, and other terms of employment remain the same. Staff recommends that the Fire Board approve the resolution updating the Fire District’s salary schedules for the fiscal year 2023-24. FISCAL IMPACT: Adjustments to the salary ranges were accounted for during the adoption of the Memorandums of Understanding. COUNCIL MISSION / VISION / GOAL(S) ADDRESSED: This item addresses the Council’s core value of working cooperatively and respectfully with one another, and intentionally embracing and anticipating the future by taking actions to further attract and retain an exceptional workforce. ATTACHMENTS: Attachment 1 – Resolution No. FD 2023-033 Attachment 2 - Firefighters Local 2274 Salary Schedule Attachment 3 - Fire Management Employees Group Salary Schedule Attachment 4 - Fire Support Services Association Attachment 5 - Fire District Part-Time Hourly Salary Schedule Page 155 of 715 ATTACHMENT 1 Resolution No. FD 2023-XXX - Page 1 of 1 3 8 6 6 RESOLUTION NO. FD 2023-XXX A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, RANCHO CUCAMONGA, CALIFORNIA, APPROVING THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT SALARY SCHEDULES FOR FISCAL YEAR 2023-2024 WHEREAS, the Board of Directors of the Rancho Cucamonga Fire Protection District has determined that it is necessary for the efficient operation and management of the District that policies be established prescribing salary ranges, benefits and holidays, and other policies for employees of the Rancho Cucamonga Fire Protection District; and WHEREAS, the Board of Directors of the Rancho Cucamonga Fire Protection District has previously adopted salary resolutions that established salary ranges, benefits, and other terms of employment for employees of the Rancho Cucamonga Fire Protection District; and WHEREAS, the Board of Directors of the Rancho Cucamonga Fire Protection District recognizes that it is necessary from time to time to amend the salary resolution to accommodate changes in position titles, classifications salary ranges, additions and deletions of classifications, benefits, and other terms of employment; and NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Rancho Cucamonga Fire Protection District, Rancho Cucamonga, California to approve the attached Rancho Cucamonga Fire Protection District Salary Schedules (Attachment 2 - 5) effective July 8, 2023. PASSED, APROVED AND ADOPTED this 19th day of July 2023. Page 156 of 715 Page 157 of 715 Page 158 of 715 Resolution No. FD 2023-XXX A B C D E F FIRE CHIEF 96.87 101.72 106.80 112.13 117.14 123.63 Hourly 7,749.60 8,137.60 8,544.00 8,970.40 9,371.20 9,890.40 Bi-Weekly 16,790.80 17,631.47 18,512.00 19,435.87 20,304.27 21,429.20 Monthly FIRE DEPUTY CHIEF 79.47 83.45 87.62 92.01 96.60 101.43 Hourly 6,357.60 6,676.00 7,009.60 7,360.80 7,728.00 8,114.40 Bi-Weekly 13,774.80 14,464.67 15,187.47 15,948.40 16,744.00 17,581.20 Monthly FIRE BATTALION CHIEF 49.48 51.95 54.55 57.28 60.14 Hourly (56 Hour Workweek)5,541.78 5,818.71 6,109.21 6,415.32 6,735.43 Bi-Weekly 12,007.19 12,607.20 13,236.63 13,899.87 14,593.44 Monthly FIRE BATTALION CHIEF 69.27 72.73 76.37 80.19 84.19 Hourly (40 Hour Workweek)5,541.78 5,818.71 6,109.21 6,415.32 6,735.43 Bi-Weekly 12,007.19 12,607.20 13,236.63 13,899.87 14,593.44 Monthly FIRE MARSHAL 74.29 78.01 81.92 86.02 90.30 Hourly 5,943.20 6,240.80 6,553.60 6,881.60 7,224.00 Bi-Weekly 12,876.93 13,521.73 14,199.47 14,910.13 15,652.00 Monthly FIRE BUSINESS MANAGER 54.09 56.80 59.64 62.62 65.75 69.04 Hourly 4,327.40 4,544.00 4,771.20 5,009.60 5,260.00 5,522.80 Bi-Weekly 9,376.03 9,845.33 10,337.60 10,854.13 11,396.67 11,966.07 Monthly BC TRAINING OFFICER STIPEND (11% of 40 hr BC Current Step) 40 Hour Workweek 7.62 8.00 8.40 8.82 9.26 Hourly 56 Hour Workweek 5.44 5.71 6.00 6.30 6.62 Hourly 609.60 640.06 672.01 705.69 740.90 Bi-Weekly 1,320.79 1,386.79 1,456.03 1,528.99 1,605.28 Monthly SALARY SCHEDULE AS OF JULY 8, 2023 FIRE MANAGEMENT EMPLOYEES GROUP ATTACHMENT 3 Fire Management Employees Group Salary Schedule July 8, 2023Page 159 of 715 Resolution No. FD 2023-XXX ATTACHMENT 3 Fire Management Employees Group Salary Schedule July 8, 2023Page 160 of 715 Resolution No. FD 2023-XXX A B C D E F COMMUNICATIONS TECHNICIAN 25.37 26.64 27.97 29.37 30.83 32.38 Hourly 2,029.39 2,130.86 2,237.40 2,349.27 2,466.74 2,590.07 Bi-Weekly 4,397.01 4,616.86 4,847.70 5,090.09 5,344.59 5,611.82 Monthly COMMUNITY AFFAIRS SENIOR 30.46 31.98 33.58 35.26 37.02 38.88 Hourly COORDINATOR 2,436.77 2,558.61 2,686.54 2,820.86 2,961.91 3,110.00 Bi-Weekly 5,279.66 5,543.65 5,820.83 6,111.87 6,417.46 6,738.34 Monthly EMERGENCY MANAGEMENT 38.00 39.90 41.89 43.99 46.19 48.50 Hourly COORDINATOR 3,039.81 3,191.80 3,351.39 3,518.96 3,694.91 3,879.65 Bi-Weekly 6,586.25 6,915.56 7,261.34 7,624.41 8,005.63 8,405.91 Monthly EMERGENCY MEDICAL SERVICES 49.38 51.85 54.44 57.16 60.02 63.02 Hourly ADMINISTRATOR 3,950.49 4,148.01 4,355.41 4,573.18 4,801.84 5,041.93 Bi-Weekly 8,559.39 8,987.36 9,436.73 9,908.56 10,403.99 10,924.19 Monthly EMERGENCY MEDICAL SERVICES 41.14 43.20 45.36 47.63 50.01 52.51 Hourly QUALITY IMPROVEMENT NURSE 3,291.69 3,456.28 3,629.10 3,810.56 4,001.09 4,201.15 Bi-Weekly 7,132.01 7,488.62 7,863.06 8,256.22 8,669.04 9,102.50 Monthly FIRE EQUIPMENT APPRENTICE 19.79 20.78 21.82 22.91 24.06 25.26 Hourly MECHANIC 1,583.51 1,662.69 1,745.82 1,833.11 1,924.77 2,021.01 Bi-Weekly 3,430.95 3,602.49 3,782.62 3,971.75 4,170.34 4,378.85 Monthly FIRE EQUIPMENT LEAD 29.46 30.93 32.48 34.11 35.81 37.60 Hourly MECHANIC 2356.94 2474.78 2598.52 2728.45 2864.87 3008.11 Bi-Weekly 5,106.69 5,362.03 5,630.13 5,911.64 6,207.22 6,517.58 Monthly FIRE EQUIPMENT MECHANIC 26.72 28.05 29.46 30.93 32.48 34.10 Hourly 2137.52 2244.40 2356.62 2474.45 2598.17 2728.08 Bi-Weekly 4,631.29 4,862.86 5,106.01 5,361.31 5,629.37 5,910.84 Monthly FIRE INFORMATION SYSTEMS 24.07 25.27 26.54 27.87 29.26 30.72 Hourly TECHNICIAN 1,925.70 2,021.99 2,123.08 2,229.24 2,340.70 2,457.74 Bi-Weekly 4,172.35 4,380.97 4,600.02 4,830.02 5,071.52 5,325.09 Monthly FIRE PREVENTION SPECIALIST 27.16 28.52 29.95 31.44 33.02 34.67 Hourly INSPECTION I 2,172.93 2,281.58 2,395.66 2,515.44 2,641.22 2,773.28 Bi-Weekly 4,708.02 4,943.43 5,190.60 5,450.13 5,722.63 6,008.76 Monthly FIRE SUPPORT SERVICES ASSOCIATION SALARY SCHEDULE AS OF JULY 8, 2023 ATTACHMENT 4 Fire Support Services Association Salary Schedule July 8, 2023Page 161 of 715 Resolution No. FD 2023-XXX A B C D E F FIRE PREVENTION SPECIALIST 29.94 31.44 33.01 34.66 36.40 38.22 Hourly INSPECTION II 2,395.52 2,515.29 2,641.06 2,773.11 2,911.76 3,057.35 Bi-Weekly 5,190.28 5,449.80 5,722.29 6,008.40 6,308.82 6,624.26 Monthly FIRE PREVENTION SUPERVISOR 34.07 35.77 37.56 39.44 41.41 43.48 Hourly 2,725.55 2,861.83 3,004.92 3,155.16 3,312.92 3,478.57 Bi-Weekly 5,905.36 6,200.62 6,510.65 6,836.19 7,178.00 7,536.90 Monthly FIRE SHOP SUPERVISOR 35.34 37.11 38.97 40.92 42.96 45.11 Hourly 2,827.61 2,969.00 3,117.45 3,273.32 3,436.99 3,608.84 Bi-Weekly 6,126.51 6,432.84 6,754.48 7,092.20 7,446.81 7,819.15 Monthly MAINTENANCE OFFICER 36.33 38.15 40.05 42.06 44.16 46.37 Hourly 2,906.43 3,051.75 3,204.34 3,364.56 3,532.79 3,709.43 Bi-Weekly 6,297.27 6,612.13 6,942.74 7,289.88 7,654.37 8,037.09 Monthly MANAGEMENT AIDE 24.99 26.24 27.56 28.93 30.38 31.90 Hourly 1,999.49 2,099.47 2,204.44 2,314.66 2,430.39 2,551.91 Bi-Weekly 4,332.23 4,548.84 4,776.28 5,015.10 5,265.85 5,529.15 Monthly MANAGEMENT ANALYST I 29.01 30.46 31.98 33.58 35.26 37.02 Hourly 2,320.73 2,436.77 2,558.61 2,686.54 2,820.86 2,961.91 Bi-Weekly 5,028.25 5,279.66 5,543.65 5,820.83 6,111.87 6,417.46 Monthly MANAGEMENT ANALYST II 33.34 35.00 36.75 38.59 40.52 42.55 Hourly 2,666.98 2,800.33 2,940.34 3,087.36 3,241.73 3,403.81 Bi-Weekly 5,778.45 6,067.37 6,370.74 6,689.28 7,023.74 7,374.93 Monthly MANAGEMENT ANALYST III 36.31 38.12 40.03 42.03 44.13 46.34 Hourly 2,904.64 3,049.87 3,202.36 3,362.48 3,530.60 3,707.13 Bi-Weekly 6,293.38 6,608.05 6,938.45 7,285.37 7,649.64 8,032.12 Monthly PLANS EXAMINER - FIRE 33.37 35.04 36.79 38.63 40.57 42.59 Hourly 2,669.90 2,803.39 2,943.56 3,090.74 3,245.28 3,407.54 Bi-Weekly 5,784.78 6,074.02 6,377.72 6,696.61 7,031.44 7,383.01 Monthly PUBLIC EDUCATION 28.09 29.50 30.97 32.52 34.15 35.85 Hourly SPECIALIST 2,247.45 2,359.82 2,477.82 2,601.71 2,731.79 2,868.38 Bi-Weekly 4,869.48 5,112.95 5,368.60 5,637.03 5,918.88 6,214.83 Monthly AS OF JULY 8, 2023 FIRE SUPPORT SERVICES ASSOCIATION SALARY SCHEDULE ATTACHMENT 4 Fire Support Services Association Salary Schedule July 8, 2023Page 162 of 715 Resolution No. FD 2023-XXX A B C D E F ADMINISTRATIVE ASSISTANT 17.85 18.79 19.78 20.82 21.92 23.07 Hourly 1,428.16 1,503.33 1,582.45 1,665.74 1,753.41 1,845.69 Bi-Weekly 3,094.35 3,257.21 3,428.64 3,609.10 3,799.05 3,999.00 Monthly EXECUTIVE ASSISTANT 22.31 23.48 24.72 26.02 28.83 30.35 Hourly 1,784.58 1,878.50 1,977.37 2,081.44 2,306.38 2,427.69 Bi-Weekly 3,866.58 4,070.08 4,284.30 4,509.79 4,997.15 5,260.00 Monthly EXECUTIVE ASSISTANT II 25.95 27.31 28.75 30.26 31.85 33.53 Hourly 2,075.64 2,184.88 2,299.87 2,420.92 2,548.34 2,682.46 Bi-Weekly 4,497.21 4,733.91 4,983.06 5,245.33 5,521.40 5,812.00 Monthly FIRE SUPPORT SERVICES ASSOCIATION SALARY SCHEDULE AS OF JULY 8, 2023 ATTACHMENT 4 Fire Support Services Association Salary Schedule July 8, 2023Page 163 of 715 Resolution No. FD 2023-XXX A B C D E F COMMUNICATIONS TECHNICIAN 24.38 25.60 26.88 28.23 29.64 31.12 Hourly EMERGENCY MEDICAL SERVICES 41.14 43.20 45.36 47.62 50.01 52.51 Hourly QUALITY IMPROVEMENT NURSE FIRE CLERK (one step)15.50 Hourly FIRE EQUIPMENT MECHANIC 23.22 24.38 25.60 26.88 28.23 29.64 Hourly FIRE INFORMATION SYSTEMS 23.14 24.29 25.51 26.78 28.12 29.53 Hourly TECHNICIAN FIRE PREVENTION ASSISTANT (one step)15.50 Hourly TEMPORARY/PART-TIME FIRE PREVENTION SPECIALIST 24.49 25.72 27.00 28.35 29.77 31.26 Hourly INSPECTION I MANAGEMENT AIDE 24.01 25.24 26.53 27.88 29.16 30.62 Hourly MANAGEMENT ANALYST I 27.88 29.31 30.81 32.39 33.87 35.56 Hourly OFFICE SERVICES CLERK 16.85 17.71 18.62 19.57 20.47 21.49 Hourly OFFICE SPECIALIST I 15.50 16.28 17.09 17.94 18.84 19.78 Hourly OFFICE SPECIALIST II 16.85 17.71 18.62 19.57 20.47 21.49 Hourly PLANS EXAMINER - FIRE 32.08 33.68 35.37 37.13 38.99 40.94 Hourly QUALITY IMPROVEMENT 27.79 29.18 30.64 32.17 33.78 35.47 Hourly SPECIALIST FIRE DISTRICT PART-TIME HOURLY SALARY SCHEDULE AS OF JULY 1, 2023 ATTACHMENT 5 Fire District Part-Time Hourly Salary Schedule July 1, 2023Page 164 of 715 DATE:July 19, 2023 TO:Mayor and Members of the City Council President and Members of the Boards of Directors FROM:John R. Gillison, City Manager INITIATED BY:Julie A. Sowles, Deputy City Manager of Civic and Cultural Services Linda A. Troyan, MMC, City Clerk Services Director SUBJECT:Consideration of Resolution Adopting a Policy Regarding the Distribution of Complimentary Tickets or Passes Pursuant to FPPC Regulation 18944.1. (RESOLUTION NO. 2023-090 AND RESOLUTION NO. FD 2023-035) (CITY/FIRE) RECOMMENDATION: Staff recommends the City Council and Fire Board of the Rancho Cucamonga Fire Protection District adopt a resolution guiding the distribution of complimentary tickets or passes pursuant to FPPC Regulation 18944.1. BACKGROUND: From time to time, the City and Rancho Cucamonga Fire Protection District receive complimentary tickets or passes for use by various public officials, including employees. The Political Reform Act requires City and Fire Protection District officials and those employees designated in the City's Conflict of Interest Code to report these as gifts on their Form 700, Statement of Economic Interests. FPPC Regulation 18944.1 provides that a ticket or pass provided to such persons by the City and Fire District and distributed and used per an adopted written policy that meets the requirements of Regulation 18944.1 is not a gift under the Political Reform Act. For the City and Fire District to continue distributing these tickets or passes without it constituting a gift to the receiving public official, the Fair Political Practice Commission (“FPPC”) requires the adoption of a written policy that identifies the legitimate public purpose for which the ticket or pass was distributed. ANALYSIS: The attached City and Fire Protection District Resolutions establish a policy for distributing, using, and reporting complimentary tickets or passes in compliance with FPPC Regulation 18944.1. If the Resolutions are adopted, the policy must be posted on their respective websites within 30 days of adoption, and a link to such website must be sent to the FPPC. Among other requirements, Regulation 18944.1 requires a ticket distribution policy to state the public purposes for which tickets may be distributed to City officials and designated employees. In addition, tickets distributed to City and Fire District officials and designated employees under Page 165 of 715 Page 2 1 9 4 6 such a policy must be reported on FPPC Form 802 and include details regarding the ticket and related event. The Form 802 must be posted on the respective website within 45 days of distribution of a ticket or pass, and the link forwarded to the FPPC. This policy is subject to all applicable FPPC Regulations and the Political Reform Act. FISCAL IMPACT: There is no fiscal impact. COUNCIL MISSION / VISION / GOAL(S) ADDRESSED: The policy addresses the core value of relentless pursuit of improvement by maintaining organizational efficiency and compliance with FPPC Regulation 18944.1. ATTACHMENTS: Attachment 1 - City Ticket Policy Resolution Attachment 2 - RC Fire District Ticket Policy Resolution Attachment 3 – FPPC Regulations 18944.1 Attachment 4 – CA Form 802 Page 166 of 715 Resolution No. 2023-XXX - Page 1 of 8 3 8 5 9 RESOLUTION NO. 2023-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, ADOPTING A COMPLIMENTARY TICKETS OR PASSES POLICY PURSUANT TO FAIR POLITICAL PRACTICES COMMISSION REGULATION 18944.1 A. Recitals 1. From time to time, cities, including the City of Rancho Cucamonga (“City”) may receive complimentary tickets or passes from third parties for use by various City officials, including employees. 2. Fair Political Practices Commission (FPPC) Regulation 18944.1 authorizes the City Council to adopt a written policy governing the distribution of complimentary tickets and passes that includes a statement describing the public purpose to be accomplished by such policy. When distributed pursuant to a qualifying policy, such tickets are not considered gifts under the FPPC Regulations. B. Resolution NOW, THEREFORE, it is hereby found, determined, and resolved by the City Council of the City of Rancho Cucamonga as follows: 1. The City Council hereby approves and adopts the “Policy Regarding the Distribution of Complimentary Tickets or Passes Pursuant to FPPC Regulation 18944.1” attached hereto as Exhibit A and on file in the office of the City Clerk. 2. The City Council hereby directs the City Clerk to post the policy on the City’s website. 3. The City Clerk shall certify to the adoption of this Resolution. ATTACHMENT 1 Page 167 of 715 Resolution No. 2023-XXX - Page 2 of 8 3 8 5 9 PASSED, APPROVED, and ADOPTED this 19th day of July, 2023. ______________________________________ L. Dennis Michael, Mayor ATTEST: _________________________________ Janice C. Reynolds, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss CITY OF RANCHO CUCAMONGA ) I, Janice C. Reynolds, City Clerk of the City of Rancho Cucamonga, do hereby certify that the foregoing Resolution was duly passed, approved, and adopted by the City Council of the City of Rancho Cucamonga, at a Regular Meeting of said Council held on the 19th day of July, 2023. AYES: NOES: ABSENT: ABSTAINED: Executed this 20th day of July, 2023, at Rancho Cucamonga, California. ______________________________________ Janice C. Reynolds, City Clerk Page 168 of 715 Resolution No. 2023-XXX - Page 3 of 8 3 8 5 9 EXHIBIT A CITY OF RANCHO CUCAMONGA AND RANCHO CUCAMONGA FIRE PROTECTION DISTRICT POLICY REGARDING THE DISTRIBUTION OF COMPLIMENTARY TICKETS OR PASSES PURSUANT TO FPPC REGULATION 18944.1 Section 1. Purpose of Policy The purpose of this Policy is to establish a fair and equitable process for the distribution of complimentary tickets or passes to the City in compliance with the requirements of Section 18944.1 of the Fair Political Practices Commission Regulations. This Policy is subject to all applicable FPPC Regulations and the Political Reform Act, as now exist or may hereafter be added or amended. Section 2. Definitions Unless otherwise expressly provided herein, words and terms used in this Policy shall have the same meaning as that ascribed to such words and terms in the FPPC Regulations and the Political Reform Act. A. “City” shall mean the City of Rancho Cucamonga, the Rancho Cucamonga Fire Protection District, and any departments, boards, committees, and commissions thereof. B. “City Official” shall mean every official, officer, agent and employee of the City who is obligated to file an annual Statement of Economic Interests (FPPC Form 700) under the Political Reform Act or the City’s current conflict of interest code. C. “City Venue” shall mean and refer to any facility owned, controlled or operated by the City. D. “FPPC” shall mean and refer to the California Fair Political Practices Commission. E. “FPPC Regulations” shall mean the Fair Political Practices Commission regulations contained in Title 2, Division 6 of the California Code of Regulations, Sections 18110 et seq., as the same may be amended from time to time. F. “Immediate Family” shall mean the spouse and dependent children of the City Official. The term spouse includes registered domestic partners recognized by state law. The term dependent children shall mean a child, including an adoptive child or stepchild, of a City Official who is under 18 years old and who the City Official is entitled to claim as a dependent on his or her federal tax return. G. “Pass” shall mean a Ticket that provides repeated access, entry, or admission to a facility or series of events and for which similar passes are sold to the public. Page 169 of 715 Resolution No. 2023-XXX - Page 4 of 8 3 8 5 9 H. “Policy” shall mean and refer to this Policy Regarding the Distribution of Complimentary Tickets or Passes Pursuant to FPPC Regulation 18944.1 I. “Political Reform Act” shall mean California Political Reform Act of 1974 (Government Code Sections 81000, et seq., as the same may be amended from time to time) and the FPPC Regulations. J. “Ticket” shall mean anything that provides access, entry, or admission to a specific future event or function, and for which similar tickets are sold to the public to view, listen to, or otherwise take advantage of the attraction or activity for which the ticket is sold and includes any benefits that the ticket provides. Section 3. Application of Policy A. This Policy shall be applicable to every officer, agent and employee of the City who is obligated to file an annual Statement of Economic Interests (Form 700) under the Political Reform Act or the City’s current conflict of interest code. B. This Policy governs the distribution of Tickets or Passes by the City to a City Official, or at the behest of a City Official, that are either: 1. Gratuitously provided to the City by an outside source; 2. Acquired by the City by purchase; 3. Acquired by the City as consideration pursuant to the terms of a contract for the use of a city venue; or 4. Acquired and distributed by the City in any other manner. C. This Policy does not apply to the following: 1.Other items of value.Any other item of value provided to the City or any City Official, regardless of whether received gratuitously or for which consideration is provided. 2.Sources other than the City.Tickets or Passes provided by sources other than the City. 3. Taxable Income. A Ticket or Pass received by a City Official from the City where both the City Official and the City treat and report the value of the Ticket or Pass as taxable income consistent with applicable state and federal income tax laws and the Ticket is reported as income. 4.Reimbursement. A Ticket or Pass distributed by the City to a City Official if such City Official pays to the City the fair value of the ticket within 30 days of receipt. Page 170 of 715 Resolution No. 2023-XXX - Page 5 of 8 3 8 5 9 5.Ceremonial Roles. A Ticket provided to a City Official so that the City Official may perform a ceremonial role on behalf of the City or as part of his or her job duties to assist the official performing the ceremonial role, is not a gift as provided by Section 18942(a)(13) of the FPPC Regulations. Section 4. General Provisions. A. No Right to Tickets or Passes: The use of complimentary Tickets or Passes is a privilege extended by the City and not the right of any person to which the privilege may from time to time be extended. B. Limitation on Transfer of Tickets or Passes: Tickets or Passes distributed to a City Official pursuant to this Policy shall not be transferred to any other person, except to members of such City Official’s Immediate Family or no more than one guest solely for their attendance at the event. If a City Official transfers a Ticket or Pass he or she has received from the City to another person, as opposed to returning the Ticket or Pass to the City for redistribution, then the value of the Ticket or Pass he or she transfers shall constitute a gift to him or her and shall be reportable as provided by the FPPC Regulations. C. Prohibition Against Sale of or Receiving Reimbursement for Tickets or Passes: No person who receives a Ticket or Pass pursuant to this Policy shall sell or receive reimbursement for the value of such Ticket or Pass. D. No Disproportionate Use. There shall be no disproportionate use of Tickets or Passes by any City Council member, the City Manager or any department head. Section 5. Ticket Administrator A. The City Council delegates the authority to the City Manager or his/her designee to be the Ticket Administrator for purposes of implementing the provisions of this Policy. B. The Ticket Administrator shall have the authority, in his or her sole discretion, to establish procedures for the distribution of Tickets or Passes in accordance with this Policy. Such authority includes the power to distribute such a Ticket or Pass to the City Manager provided that doing so is otherwise consistent with this Policy. All requests for Tickets or Passes that fall within the scope of this Policy shall be made in accordance with the procedures established by the Ticket Administrator. C. The Ticket Administrator shall determine the fair value of Tickets or Passes distributed by the City for purposes of reporting pursuant to Section 9 of this Policy. D. The Ticket Administrator, in his or her sole discretion, may revoke or suspend the Ticket privileges of any person who violates any provision of this Policy or the procedures established by the Ticket Administrator for the distribution of Tickets or Passes. Page 171 of 715 Resolution No. 2023-XXX - Page 6 of 8 3 8 5 9 E. For the purpose of implementing this Policy, and completing and posting the FPPC California Form 802, the Ticket Administrator shall be the “Agency Head.” The Office of the City Clerk is delegated responsibility for completing and posting the FPPC Form 802. Section 6. Conditions Under Which Tickets or Passes Distributed to City Officials are not considered a Gift under the Political Reform Act A. The Ticket Administrator must distribute complimentary Tickets or Passes to City Officials only pursuant to this Policy. B. The Ticket or Pass is not earmarked by an outside source for use by specific City Official(s). The Ticket Administrator must determine, in its sole discretion, who uses the Ticket or Pass. C. The Ticket or Pass must be reported pursuant to Section 9 of this Policy. D. The distribution of the Ticket(s) to, or at the behest of, the City Official must accomplish or further one or more of the following governmental and/or public purposes: 1. Facilitating the performance of a ceremonial role or function by a City Official on behalf of the City at an event, for which the City Official may receive enough Tickets or Passes for the City Official and each member of his or her Immediate Family. 2. Facilitating the attendance of a City Official at an event where the job duties of the City Official require his or her attendance at the event, for which the City Official may receive enough Tickets or Passes for each member of the City Official’s Immediate Family. 3. Promotion of intergovernmental relations and/or cooperation and coordination of resources with other governmental agencies, including, but not limited to, attendance at an event with or by elected or appointed public officials from other jurisdictions, their staff members and their guests. 4. Economic or business development purposes on behalf of the City. 5. Promotion of City resources and/or facilities available to Rancho Cucamonga residents. 6. Promotion of City-run, sponsored or supported community events, activities or programs. 7. To monitor and evaluate the value of City-run, sponsored or supported community events, activities or programs to the City including but not limited to evaluation of the venue, quality of performances and compliance with City policies, agreements and other requirements. Page 172 of 715 Resolution No. 2023-XXX - Page 7 of 8 3 8 5 9 8. Promotion and evaluation of events, activities or programs at City venues, including but not limited to evaluation of the venue, quality of performances and compliance with City policies, agreements and other requirements. 9. Promoting, supporting and/or showing appreciation for programs or services rendered by charitable and non-profit organizations benefiting Rancho Cucamonga residents. 10. Promotion of City tourism on a local, state, national or worldwide scale. 11. Business retention or attraction on a local, state, national or worldwide scale. 12. Promotion of City recognition, visibility, and/or profile on a local, state, national or worldwide scale. 13. Encouraging Rancho Cucamonga resident and business support for and attendance at local events. 14. Encouraging participants in City sponsored programs to attend local events. 15. Attracting or rewarding volunteer public service. 16. Encouraging or rewarding significant academic, athletic, or public service achievements by Rancho Cucamonga students, residents or businesses. 17. Attracting and retaining highly qualified employees in the City service. 18. Recognizing or rewarding meritorious service by a City employee. 19. Promoting enhanced City employee performance or morale. 20. As an incident to the above public purposes, allowing for the Immediate Family of the City Official to accompany the City Official to events to accomplish any of the purposes listed in this Resolution. E. The City Official receiving a Ticket or Pass shall prepare a written inspection report of findings and recommendations if part of the public purpose for which the Ticket or Pass was received was for the public oversight or inspection of facilities. Section 7. Tickets or Passes Distributed at the Behest of a City Official. A. Only the following City Officials shall have authority to behest Tickets or Passes: City Council Members, the City Manager, the Assistant City Manager, the Deputy City Manager(s) and Department Heads. Page 173 of 715 Resolution No. 2023-XXX - Page 8 of 8 3 8 5 9 B. Tickets or Passes shall be distributed at the behest of a City Official only for one or more public purposes set forth in Section 6.D. above. C. If Tickets or Passes are distributed at the behest of a City Official, such City Official shall not use one of the Tickets or Passes so distributed to attend the event. Section 8. Other Benefits A. The distribution of Tickets or Passes pursuant to this Policy shall not constitute a "gift" to the City Official receiving the Ticket, however, other benefits, such as food or beverage or other gifts provided to the City Official that are not given to the general public as part of the Ticket or Pass admission, will need to be accounted for as gifts. B. If the City receives complimentary Tickets or Passes that are earmarked for particular City Officials, then the Tickets or Passes are considered gifts to that particular City Official. If these Tickets or Passes are not returned unused to the provider within thirty (30) days of receipt, then the City Official must comply with the applicable FPPC gift limit regulations and reporting regulations. Section 9. Posting and Disclosure Requirements A. Within 30 days of adoption or amendment of this Policy, the Policy shall be posted on the City’s website and a link to the website that displays the City’s Policy shall be e-mailed to the FPPC in order for the FPPC to post the link on its website. B. Within 45 days of distribution of a Ticket or Pass, the City must report the distribution on FPPC Form 802 containing the information required to be reported under Regulation 18944.1(d), and post the Form 802 on the City’s website and a link to the website that displays the City’s Form 802s shall be e-mailed to the FPPC in order for the FPPC to post the link on its website. C. This Policy and the City’s Form 802s are public records and are subject to inspection and copying under Government Code Section 81008. Page 174 of 715 Resolution No. FD 2023-XXX - Page 1 of 8 3 8 5 4 RESOLUTION NO. FD 2023-XXX A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, RANCHO CUCAMONGA, CALIFORNIA, ADOPTING A COMPLIMENTARY TICKETS OR PASSES POLICY PURSUANT TO FAIR POLITICAL PRACTICES COMMISSION REGULATION 18944.1 A. Recitals 1. From time to time, special districts, including the Rancho Cucamonga Fire Protection District (“District”) may receive complimentary tickets or passes from third parties for use by various District officials, including employees. 2. Fair Political Practices Commission (FPPC) Regulation 18944.1 authorizes the Board of Directors to adopt a written policy governing the distribution of complimentary tickets and passes that includes a statement describing the public purpose to be accomplished by such policy. When distributed pursuant to a qualifying policy, such tickets are not considered gifts under the FPPC Regulations. B. Resolution NOW, THEREFORE, it is hereby found, determined, and resolved by the Board of Directors of the Rancho Cucamonga Fire Protection District as follows: 1. The Board of Directors hereby approves and adopts the “Policy Regarding the Distribution of Complimentary Tickets or Passes Pursuant to FPPC Regulation 18944.1” attached hereto as Exhibit A and on file in the office of the District Secretary. 2. The Board of Directors hereby directs the Secretary to post the policy on the District’s website, which is the City of Rancho Cucamonga’s website. 3. The Secretary shall certify to the adoption of this Resolution. ATTACHMENT 2 Page 175 of 715 Resolution No. FD 2023-XXX - Page 2 of 8 3 8 5 4 PASSED, APPROVED AND ADOPTED this 19th day of July, 2023. _____________________________ L. Dennis Michael, President ATTEST: _ Janice C. Reynolds, Secretary I, JANICE C. REYNOLDS , SECRETARY of the Rancho Cucamonga Fire Protection District, do hereby certify that the foregoing Resolution was duly passed, approved, and adopted by the Board of Directors of the Rancho Cucamonga Fire Protection District, at a Regular Meeting of said Board held on the 19th day of July, 2023. AYES: NOES: ABSENT: ABSTAINED: Executed this 20th day of July, 2023, at Rancho Cucamonga, California. _ Janice C. Reynolds, Secretary Page 176 of 715 Resolution No. FD 2023-XXX - Page 3 of 8 3 8 5 4 EXHIBIT A CITY OF RANCHO CUCAMONGA AND RANCHO CUCAMONGA FIRE PROTECTION DISTRICT POLICY REGARDING THE DISTRIBUTION OF COMPLIMENTARY TICKETS OR PASSES PURSUANT TO FPPC REGULATION 18944.1 Section 1. Purpose of Policy The purpose of this Policy is to establish a fair and equitable process for the distribution of complimentary tickets or passes to the City in compliance with the requirements of Section 18944.1 of the Fair Political Practices Commission Regulations. This Policy is subject to all applicable FPPC Regulations and the Political Reform Act, as now exist or may hereafter be added or amended. Section 2. Definitions Unless otherwise expressly provided herein, words and terms used in this Policy shall have the same meaning as that ascribed to such words and terms in the FPPC Regulations and the Political Reform Act. A. “City” shall mean the City of Rancho Cucamonga, the Rancho Cucamonga Fire Protection District, and any departments, boards, committees, and commissions thereof. B. “City Official” shall mean every official, officer, agent and employee of the City who is obligated to file an annual Statement of Economic Interests (FPPC Form 700) under the Political Reform Act or the City’s current conflict of interest code. C. “City Venue” shall mean and refer to any facility owned, controlled or operated by the City. D. “FPPC” shall mean and refer to the California Fair Political Practices Commission. E. “FPPC Regulations” shall mean the Fair Political Practices Commission regulations contained in Title 2, Division 6 of the California Code of Regulations, Sections 18110 et seq., as the same may be amended from time to time. F. “Immediate Family” shall mean the spouse and dependent children of the City Official. The term spouse includes registered domestic partners recognized by state law. The term dependent children shall mean a child, including an adoptive child or stepchild, of a City Official who is under 18 years old and who the City Official is entitled to claim as a dependent on his or her federal tax return. G. “Pass” shall mean a Ticket that provides repeated access, entry, or admission to a facility or series of events and for which similar passes are sold to the public. Page 177 of 715 Resolution No. FD 2023-XXX - Page 4 of 8 3 8 5 4 H. “Policy” shall mean and refer to this Policy Regarding the Distribution of Complimentary Tickets or Passes Pursuant to FPPC Regulation 18944.1 I. “Political Reform Act” shall mean California Political Reform Act of 1974 (Government Code Sections 81000, et seq., as the same may be amended from time to time) and the FPPC Regulations. J. “Ticket” shall mean anything that provides access, entry, or admission to a specific future event or function, and for which similar tickets are sold to the public to view, listen to, or otherwise take advantage of the attraction or activity for which the ticket is sold and includes any benefits that the ticket provides. Section 3. Application of Policy A. This Policy shall be applicable to every officer, agent and employee of the City who is obligated to file an annual Statement of Economic Interests (Form 700) under the Political Reform Act or the City’s current conflict of interest code. B. This Policy governs the distribution of Tickets or Passes by the City to a City Official, or at the behest of a City Official, that are either: 1. Gratuitously provided to the City by an outside source; 2. Acquired by the City by purchase; 3. Acquired by the City as consideration pursuant to the terms of a contract for the use of a city venue; or 4. Acquired and distributed by the City in any other manner. C. This Policy does not apply to the following: 1.Other items of value.Any other item of value provided to the City or any City Official, regardless of whether received gratuitously or for which consideration is provided. 2.Sources other than the City.Tickets or Passes provided by sources other than the City. 3.Taxable Income. A Ticket or Pass received by a City Official from the City where both the City Official and the City treat and report the value of the Ticket or Pass as taxable income consistent with applicable state and federal income tax laws and the Ticket is reported as income. 4.Reimbursement. A Ticket or Pass distributed by the City to a City Official if such City Official pays to the City the fair value of the ticket within 30 days of receipt. Page 178 of 715 Resolution No. FD 2023-XXX - Page 5 of 8 3 8 5 4 5.Ceremonial Roles. A Ticket provided to a City Official so that the City Official may perform a ceremonial role on behalf of the City or as part of his or her job duties to assist the official performing the ceremonial role, is not a gift as provided by Section 18942(a)(13) of the FPPC Regulations. Section 4. General Provisions. A. No Right to Tickets or Passes: The use of complimentary Tickets or Passes is a privilege extended by the City and not the right of any person to which the privilege may from time to time be extended. B. Limitation on Transfer of Tickets or Passes: Tickets or Passes distributed to a City Official pursuant to this Policy shall not be transferred to any other person, except to members of such City Official’s Immediate Family or no more than one guest solely for their attendance at the event. If a City Official transfers a Ticket or Pass he or she has received from the City to another person, as opposed to returning the Ticket or Pass to the City for redistribution, then the value of the Ticket or Pass he or she transfers shall constitute a gift to him or her and shall be reportable as provided by the FPPC Regulations. C. Prohibition Against Sale of or Receiving Reimbursement for Tickets or Passes: No person who receives a Ticket or Pass pursuant to this Policy shall sell or receive reimbursement for the value of such Ticket or Pass. D. No Disproportionate Use. There shall be no disproportionate use of Tickets or Passes by any City Council member, the City Manager or any department head. Section 5. Ticket Administrator A. The City Council delegates the authority to the City Manager or his/her designee to be the Ticket Administrator for purposes of implementing the provisions of this Policy. B. The Ticket Administrator shall have the authority, in his or her sole discretion, to establish procedures for the distribution of Tickets or Passes in accordance with this Policy. Such authority includes the power to distribute such a Ticket or Pass to the City Manager provided that doing so is otherwise consistent with this Policy. All requests for Tickets or Passes that fall within the scope of this Policy shall be made in accordance with the procedures established by the Ticket Administrator. C. The Ticket Administrator shall determine the fair value of Tickets or Passes distributed by the City for purposes of reporting pursuant to Section 9 of this Policy. D. The Ticket Administrator, in his or her sole discretion, may revoke or suspend the Ticket privileges of any person who violates any provision of this Policy or the procedures established by the Ticket Administrator for the distribution of Tickets or Passes. Page 179 of 715 Resolution No. FD 2023-XXX - Page 6 of 8 3 8 5 4 E. For the purpose of implementing this Policy, and completing and posting the FPPC California Form 802, the Ticket Administrator shall be the “Agency Head.” The Office of the City Clerk is delegated responsibility for completing and posting the FPPC Form 802. Section 6. Conditions Under Which Tickets or Passes Distributed to City Officials are not considered a Gift under the Political Reform Act A. The Ticket Administrator must distribute complimentary Tickets or Passes to City Officials only pursuant to this Policy. B. The Ticket or Pass is not earmarked by an outside source for use by specific City Official(s). The Ticket Administrator must determine, in its sole discretion, who uses the Ticket or Pass. C. The Ticket or Pass must be reported pursuant to Section 9 of this Policy. D. The distribution of the Ticket(s) to, or at the behest of, the City Official must accomplish or further one or more of the following governmental and/or public purposes: 1. Facilitating the performance of a ceremonial role or function by a City Official on behalf of the City at an event, for which the City Official may receive enough Tickets or Passes for the City Official and each member of his or her Immediate Family. 2. Facilitating the attendance of a City Official at an event where the job duties of the City Official require his or her attendance at the event, for which the City Official may receive enough Tickets or Passes for each member of the City Official’s Immediate Family. 3. Promotion of intergovernmental relations and/or cooperation and coordination of resources with other governmental agencies, including, but not limited to, attendance at an event with or by elected or appointed public officials from other jurisdictions, their staff members and their guests. 4. Economic or business development purposes on behalf of the City. 5. Promotion of City resources and/or facilities available to Rancho Cucamonga residents. 6. Promotion of City-run, sponsored or supported community events, activities or programs. 7. To monitor and evaluate the value of City-run, sponsored or supported community events, activities or programs to the City including but not limited to evaluation of the venue, quality of performances and compliance with City policies, agreements and other requirements. Page 180 of 715 Resolution No. FD 2023-XXX - Page 7 of 8 3 8 5 4 8. Promotion and evaluation of events, activities or programs at City venues, including but not limited to evaluation of the venue, quality of performances and compliance with City policies, agreements and other requirements. 9. Promoting, supporting and/or showing appreciation for programs or services rendered by charitable and non-profit organizations benefiting Rancho Cucamonga residents. 10. Promotion of City tourism on a local, state, national or worldwide scale. 11. Business retention or attraction on a local, state, national or worldwide scale. 12. Promotion of City recognition, visibility, and/or profile on a local, state, national or worldwide scale. 13. Encouraging Rancho Cucamonga resident and business support for and attendance at local events. 14. Encouraging participants in City sponsored programs to attend local events. 15. Attracting or rewarding volunteer public service. 16. Encouraging or rewarding significant academic, athletic, or public service achievements by Rancho Cucamonga students, residents or businesses. 17. Attracting and retaining highly qualified employees in the City service. 18. Recognizing or rewarding meritorious service by a City employee. 19. Promoting enhanced City employee performance or morale. 20. As an incident to the above public purposes, allowing for the Immediate Family of the City Official to accompany the City Official to events to accomplish any of the purposes listed in this Resolution. E. The City Official receiving a Ticket or Pass shall prepare a written inspection report of findings and recommendations if part of the public purpose for which the Ticket or Pass was received was for the public oversight or inspection of facilities. Section 7. Tickets or Passes Distributed at the Behest of a City Official. A. Only the following City Officials shall have authority to behest Tickets or Passes: City Council Members, the City Manager, the Assistant City Manager, the Deputy City Manager(s) and Department Heads. Page 181 of 715 Resolution No. FD 2023-XXX - Page 8 of 8 3 8 5 4 B. Tickets or Passes shall be distributed at the behest of a City Official only for one or more public purposes set forth in Section 6.D. above. C. If Tickets or Passes are distributed at the behest of a City Official, such City Official shall not use one of the Tickets or Passes so distributed to attend the event. Section 8. Other Benefits A. The distribution of Tickets or Passes pursuant to this Policy shall not constitute a "gift" to the City Official receiving the Ticket, however, other benefits, such as food or beverage or other gifts provided to the City Official that are not given to the general public as part of the Ticket or Pass admission, will need to be accounted for as gifts. B. If the City receives complimentary Tickets or Passes that are earmarked for particular City Officials, then the Tickets or Passes are considered gifts to that particular City Official. If these Tickets or Passes are not returned unused to the provider within thirty (30) days of receipt, then the City Official must comply with the applicable FPPC gift limit regulations and reporting regulations. Section 9. Posting and Disclosure Requirements A. Within 30 days of adoption or amendment of this Policy, the Policy shall be posted on the City’s website and a link to the website that displays the City’s Policy shall be e-mailed to the FPPC in order for the FPPC to post the link on its website. B. Within 45 days of distribution of a Ticket or Pass, the City must report the distribution on FPPC Form 802 containing the information required to be reported under Regulation 18944.1(d), and post the Form 802 on the City’s website and a link to the website that displays the City’s Form 802s shall be e-mailed to the FPPC in order for the FPPC to post the link on its website. C. This Policy and the City’s Form 802s are public records and are subject to inspection and copying under Government Code Section 81008. Page 182 of 715 1 (Regulations of the Fair Political Practices Commission, Title 2, Division 6, California Code of Regulations) § 18944.1. Gifts: Agency Provided Tickets or Passes. (a) Gift Exemption. A ticket or pass provided to an official by the official's agency and distributed and used in accordance with a policy adopted by the agency is not a gift under the Political Reform Act if all of the following criteria are met: (1) The distribution of the ticket or pass by the agency is made in accordance with a policy adopted by the agency that incorporates all of the provisions of subdivision (b) and is maintained as a public record as required in subdivision (c). (2) The distribution of the ticket or pass is reported pursuant to subdivision (d). (3) The ticket or pass is not earmarked by an outside source for use by a specific agency official. (4) The agency determines, in its sole discretion, who uses the ticket or pass. (b) Agency Ticket/Pass Distribution Policy. Any distribution of a ticket or pass under this regulation to, or at the behest of, an agency official must be made pursuant to a written agency ticket distribution policy, duly adopted by the legislative or governing body of the agency or, if none, the agency head that contains, at a minimum, all of the following: (1) A provision setting forth the public purposes of the agency for which tickets or passes may be distributed. (2) A provision requiring that the distribution of any ticket or pass to, or at the behest of, an agency official accomplishes a stated public purpose of the agency. ATTACHMENT 3 Page 183 of 715 2 (3) A provision prohibiting the transfer of any ticket received by an agency official pursuant to the distribution policy except to members of the official's immediate family or no more than one guest solely for their attendance at the event. (4) A provision prohibiting the disproportionate use of tickets or passes by a member of the governing body, chief administrative officer of the agency, political appointee, or department head. (c) Public Record. The policy must be maintained as a public record and is subject to inspection and copying under Section 81008. The agency must post the policy on its website within 30 days of adoption or amendment and send to the Commission by e-mail the agency's website link that displays the policy so that the Commission may post the link. (d) Reporting. Within 45 days of distribution of a ticket or pass, the distribution must be reported on a form provided by the Commission. (1) Except as provided in subdivision (d)(2), the information must include the following: (A) The name of the official receiving the ticket or pass; (B) A description of the event; (C) The date of the event; (D) The fair value of the ticket or pass as that term is defined in Regulation 18946, subdivision (d)(1); (E) The number of tickets or passes provided to each person; (F) If the ticket or pass is behested, the name of the official who behested the ticket; (G) If the ticket was transferred to a person meeting the requirements of paragraph (b)(3), the relationship of the transferee; Page 184 of 715 3 (I) A written inspection report of findings and recommendations by the official receiving the ticket or pass if received for the oversight or inspection of facilities. (2) If the ticket or pass is distributed to a department or other unit of the agency, and not used by a member of the governing body, the chief administrative officer of the agency, political appointee, or department head, the agency may report the name of the department or other unit of the agency receiving the ticket or pass and the number of tickets or passes provided to the department or unit in lieu of reporting the name of the individual employee as otherwise required in subdivision (d)(1). (3) The forms must be maintained as public records and are subject to inspection and copying under Section 81008(a). The agency must post the form, or a summary of the information on the form, on its website and send to the Commission by e-mail the agency's website link that displays the form so that the Commission may post the website link. (e) Public Purpose. For purposes of subdivision (b)(2), the agency determines whether the distribution of tickets or passes serves a legitimate public purpose of the agency, consistent with state law. However, a ticket or pass distributed to an official for the official's personal use, other than a member of the governing body, the chief administrative officer of the agency, political appointee, or department head, to support general employee morale, retention, or to reward public service is deemed to serve a public purpose. For purposes of this paragraph, “personal use” is limited to the official and the official's family, or no more than one guest. (f) Application. This regulation applies solely to a ticket or pass, as those terms are defined in Regulation 18946, to an event or function provided by an agency to an official of the agency, or at the behest of an official of that agency. The provisions of this regulation apply only Page 185 of 715 4 to the benefits the official receives from the ticket or pass that are provided to all members of the public with the same class of ticket or pass. This regulation does not apply to the following: (1) An admission provided to a school, college, or university district official, coach, athletic director, or employee to attend an amateur event performed by students, which are neither gifts nor income. (2) An admission identified in Regulation 18942(a)(13) relating to an official performing a ceremonial role. (g) Ticket or Pass Received as Income. A ticket or pass is not subject to the provisions of this regulation, and not a gift for purposes of the Act, if it is taxable income to the official. (h) Reimbursement. A ticket or pass is not subject to the provisions of this regulation, and not a gift for purposes of the Act, if the official reimburses the agency for the ticket within 30 days of receipt. Note: Authority cited: Section 83112, Government Code. Reference: Section 82028, Government Code. HISTORY 1. Renumbering of former section 18726.7 to section 18944.1 with amendment of section heading filed 6-22-94; operative 6-22-94 (Register 94, No. 25). 2. Change without regulatory effect relocating section filed 11-17-94 pursuant to section 100, title 1, California Code of Regulations (Register 94, No. 46). 3. Amendment of first paragraph and subsections (a)-(b) and (d)-(e) filed 7-25-95; operative 7- 25-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 30). 4. Repealer and new section filed 1-8-2009; operative 2-7-2009. Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil Page 186 of 715 5 C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements) (Register 2009, No. 2). 5. Repealer of subsection (a), subsection relettering and amendment of newly designated subsections (a)(1), (a)(2)(A)(iii)-(b), (c) and (e) filed 9-27-2010; operative 10-27-2010. Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements) (Register 2010, No. 40). 6. Amendment of section heading and section filed 1-23-2012. Pursuant to California Code of Regulations, title 2, section 18313(e), FPPC has designated an effective date of 1-1-2012. Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements and not subject to procedural or substantive review by OAL) (Register 2012, No. 4). 7. Amendment filed 1-14-2016; operative 2-13-2016, pursuant to title 2, section 18312(e) of the California Code of Regulations. Submitted to OAL for filing and printing only pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements and not subject to procedural or substantive review by OAL) (Register 2016, No. 3). Page 187 of 715 6 8. Amendment of section heading and repealer and new section filed 6-20-2019; operative 7-20- 2019 pursuant to Cal. Code Regs., tit. 2, section 18312(e). Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements and not subject to procedural or substantive review by OAL) (Register 2019, No. 25). 9. Amendment of subsections (a) and (e) filed 5-12-2021; operative 6-11-2021 pursuant to Cal. Code Regs., tit. 2, section 18312(e). Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements and not subject to procedural or substantive review by OAL) (Register 2021, No. 20). Page 188 of 715 California Form Agency Report of: 1. Agency Name Designated Agency Contact (Name,Title) Date Stamp E-mail Division, Department, or Region (if applicable) 2. Function or Event Information Verification I have read and understand FPPC Regulations 18944.1 and 18942. I have verified that the distribution set forth above, is in accordance with the requirements. Signature of Agency Head or Designee Print Name Comment: FPPC Form 802 (2/2016) FPPC Toll-Free Helpline: 866/ASK-FPPC (866/275-3772) (month, day, year) 802 (month, day, year) For Official Use Only Area Code/Phone Number Date of Original Filing: Ticket(s)/Pass(es) provided by agency? Was ticket distribution made at the behest of agency official? Title Ceremonial Role Events and Ticket/Pass Distributions Face Value of Each Ticket/Pass $ Event Description: If no: If yes: Amendment (Must Provide Explanation in Part 3.) Provide Title/ Explanation Name of Source Official’s Name (Last, First) If checking “Ceremonial Role” or “Other” describe below: If checking “Ceremonial Role” or “Other” describe below: Name of Agency, Department or Unit Name of Outside Organization (include address and description) Name of Individual (Last, First) Number of Ticket(s)/ Passes Number of Ticket(s)/ Passes Number of Ticket(s)/ Passes Describe the public purpose made pursuant to the agency’s policy Identify one of the following: Describe the public purpose made pursuant to the agency’s policy Does the agency have a ticket policy?No No Income Other Other Ceremonial Role Ceremonial Role Income No Yes Yes Yes Date(s) //// 3. A. B. C. 4. A Public Document Recipients Use Section A to identify the agency’s department or unit. Use Section B to identify an individual. Use Section C to identify an outside organization.• • • Print Clear ATTACHMENT 4 Page 189 of 715 California Form 802Agency Report of: Ceremonial Role Events and Ticket/Pass Distributions A Public DocumentContinuation Sheet Agency Name If checking “Ceremonial Role” or “Other” describe below: If checking “Ceremonial Role” or “Other” describe below: If checking “Ceremonial Role” or “Other” describe below: If checking “Ceremonial Role” or “Other” describe below: Name of Agency, Department or Unit Name of Individual (Last, First) Name of Outside Organization (include address and description) Number of Ticket(s)/ Passes Number of Ticket(s)/ Passes Number of Ticket(s)/ Passes Describe the public purpose made pursuant to the agency’s policy Identify one of the following: Describe the public purpose made pursuant to the agency’s policy Income Income Other Other Other Other Ceremonial Role Ceremonial Role Ceremonial Role Ceremonial Role Income Income 3. A. B. C. Recipients Use Section A to identify the agency’s department or unit. Use Section B to identify an individual. Use Section C to identify an outside organization.• • • FPPC Form 802 (2/2016) FPPC Toll-Free Helpline: 866/ASK-FPPC (866/275-3772) Print Clear Page 190 of 715 DATE:July 19, 2023 TO:Mayor and Members of the City Council FROM:John R. Gillison, City Manager INITIATED BY:Elisa C. Cox, Assistant City Manager Michael Parmer, Assistant to the City Manager SUBJECT:Consideration of First Reading of Ordinance No. 1019, to be Read by Title Only and Waive Further Reading, Repealing Chapter 10.76 of the Rancho Cucamonga Municipal Code, Discontinuing the City's Police Tow Rotation Program and Making a Determination that the Ordinance is Exempt from the California Environmental Quality Act. (ORDINANCE NO. 1019) (CITY) RECOMMENDATION: Staff recommends the City Council introduce, as read by title only and waive further reading, Ordinance No. 1019, repealing Chapter 10.76 of the Rancho Cucamonga Municipal Code, discontinuing the City's police tow rotation program and make a determination that the ordinance is exempt from the California Environmental Quality Act. BACKGROUND: In April 2017, the City of Rancho Cucamonga (“City”) instituted its own police tow rotation program by adoption of Ordinance No. 905. Prior to that time, the San Bernardino County Sheriff’s Department, acting through its Rancho Cucamonga Station, provided police tow services throughout the city. ANALYSIS: As a matter of routine, periodically, the City reviews existing programs to evaluate costs, status, resources, and more. Upon review of the City police tow rotation program, it was determined that the burden on administrative resources to maintain a City police tow rotation program was not commensurate with the costs. Additionally, the San Bernardino County Sheriff’s Department informed the City that it is ready and willing to provide police tow services. By repealing via Ordinance No. 1019 Chapter 10.76 of the Rancho Cucamonga Municipal Code, the City’s police tow rotation program will be discontinued, and the San Bernardino County Sheriff’s Department will assume responsibility for police tow services throughout the City. Environmental (CEQA) Review This proposed action is exempt from review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and CEQA Guidelines (Title 14 California Code of Regulations §§ 15000, et seq.), because it does not involve any commitment to a specific project which could result in a potentially significant physical impact on the environment; and, constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. Accordingly, this action does not constitute Page 191 of 715 Page 2 1 9 4 7 a "project" that requires environmental review (see specifically 14 CCR § 15061(b) (3) and 15378(b)(5)). This is because this Ordinance will result in no potential development that could have an environmental impact and the same number of tow truck trips would occur whether the City or the Sheriff’s Department operates the tow rotation program. FISCAL IMPACT: The City will no longer collect fees associated with the tow rotation program, which were budgeted at $492,960 for Fiscal Year 2023/24. While some minor savings will be realized by no longer providing the tow release program in house, overall costs for the Sheriff contract and staffing will not change. The net result will be a loss of revenue. Staff will monitor the impact of this reduction in fees and, if necessary, amend the mid-year budget to provide for other offsetting expenditure reductions. COUNCIL MISSION / VISION / VALUE(S) ADDRESSED: This item aligns with the City Council’s Core Values of a relentless pursuit of improvement and promoting and enhancing a safe and healthy community for all. ATTACHMENTS: Attachment 1 - Ordinance No. 1019 Page 192 of 715 Ordinance No. 1019 – Page 1 of 2 3 8 8 4 ORDINANCE NO. 1019 AN ORDINANCE OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, REPEALING CHAPTER 10.76 OF THE RANCHO CUCAMONGA MUNICIPAL CODE, DISCONTINUING THE CITY OF RANCHO CUCAMONGA’S POLICE TOW ROTATION PROGRAM, AND MAKING A DETERMINATION THAT THE ORDINANCE IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT I. Recitals. A. The City of Rancho Cucamonga (“City”) instituted its own police tow rotation program in 2017 by adoption of Ordinance No. 905. Prior to that time, the San Bernardino County Sheriff’s Department, acting through its Rancho Cucamonga Station, provided police tow services throughout the City. B. The City Council has determined that it is no longer necessary to maintain its own police tow rotation program due to its burden on the City’s administrative resources at this time. In addition, the Sheriff’s Department has informed the City that it is ready and willing to provide police tow services, thus obviating the need for the City to provide the service. II. Findings. A. Pursuant to the California Environmental Quality Act (“CEQA”), the City Council finds that adoption of this Ordinance is covered by general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. The City Council finds that there is no possible significant effect that could arise out of the adoption of this Ordinance, therefore no further action is required under CEQA pursuant to Sections 15061(b)(3) and 15378(b)(5) of the State CEQA Guidelines (14 CCR § 15061(b)(3)). This is because this Ordinance will result in no potential development that could have an environmental impact and the same number of tow truck trips would occur whether the City or the Sheriff’s Department operates the tow rotation program. III. Ordinance. The City Council of the City of Rancho Cucamonga does ordain as follows: SECTION 1. Chapter 10.76 (City Towing Services) of Title 10 (Vehicles and Traffic) is hereby repealed in its entirety. SECTION 2. The City of Rancho Cucamonga police tow rotation program is hereby discontinued and, as of August 1, 2023, the San Bernardino County Sheriff’s Department will be responsible for police tow services throughout the City. SECTION 3. The City Council declares that, should any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance for any reason be held 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, ATTACHMENT 1 Page 193 of 715 Ordinance No. 1019 – Page 2 of 2 3 8 8 4 clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional. SECTION 4. Neither the adoption of this Ordinance nor the repeal of any other Ordinance of this City shall in any manner affect the prosecution for violations of ordinances, which violations were committed prior to the effective date hereof, nor be construed as a waiver of any penalty or the penal provisions applicable to any violation thereof. SECTION 5. The City Clerk shall certify to the adoption of this Ordinance and shall cause it to be published in the manner required by law. PASSED, APPROVED, AND ADOPTED this _____ day of ______________, 2023. _____________________________________ L. Dennis Michael Mayor I, JANICE REYNOLDS, City Clerk of the City of Rancho Cucamonga, do hereby certify that the foregoing Ordinance was introduced at a regular meeting of the City Council of the City of Rancho Cucamonga held on the _____ day of _______________, 2023, and was finally passed at a regular meeting of the City Council of the City of Rancho Cucamonga held on the ______ day of ______________, 2023, by the following vote: AYES:COUNCILMEMBERS: NOES:COUNCILMEMBERS: ABSENT:COUNCILMEMBERS: ABSTAINED: COUNCILMEMBERS: ATTEST:______________________________ City Clerk Page 194 of 715 DATE:July 19, 2023 TO:Mayor and Members of the City Council FROM:John R. Gillison, City Manager INITIATED BY:Matthew Burris, Deputy City Manager, Community Development Department Matt Marquez, Planning and Economic Development Director Sean McPherson, AICP, Acting Principal Planner SUBJECT:Preliminary Review Hearing to Consider a Proposed Master Plan Application for a Mixed-Use Development that would Include Site-Specific Development Standards, Including a Floor Area Ratio Standard Lower than the Current Standard Under the Development Code, at 9505 Base Line Road. (CITY) RECOMMENDATION: Staff asks that the City Council consider policy implications of reducing a non-residential floor area standard within a specific project site located at 9505 Baseline Road. Notably, this site is located within a form-based zone Neighborhood General 3 (NG3), but not within the Corridor Overlay. The applicant for the potential project discussed in this report has requested to deviate from this standard by way of the master plan process due to the specific circumstance of their site. Generally, staff does not oppose the request for the project to deviate from the non-residential floor area requirement and recommends that the Council authorize the project to proceed with the understanding that this is not an approval nor a guarantee of future approval. Staff and the Planning Commission may ultimately recommend against, and the City Council may ultimately vote against or not support the project at the project hearings once additional details and analysis become available in the future. Staff also recommends that the Council direct staff to immediately consider a Development Code Amendment to analyze and review non-residential standards for mixed use projects and recommend revised standards appropriate to mixed use zones to support pedestrian oriented developments as envisioned in the General Plan. In summary, staff is recommending the following: 1. That the City Council consider policy implications of reducing a non-residential floor area standard for a specific project site located at 9505 Baseline Road. Notably, this site is located within a form-based zone Neighborhood General 3 (NG3), but not within the Corridor Overlay. 2. That the Council authorize the project to proceed with the understanding that this is not an approval, nor a guarantee of future approval, nor guarantee of a future Page 195 of 715 Page 2 1 7 9 4 recommendation of approval from staff. 3. That the Council direct staff to immediately consider a Development Code Amendment to analyze and review non-residential standards for mixed use projects and recommend revised standards appropriate to mixed use zones to support pedestrian oriented developments as envisioned in the General Plan BACKGROUND: In August 2021, the City Council adopted a policy on providing early Council feedback on applicant-initiated General Plan amendments, Specific Plans, master plans, or Development Code amendments, such as the subject master plan request. This early feedback from Council is to be provided via an administrative hearing. This policy is attached to this staff report for reference as Attachment 1. In summary, the intent of this master plan policy is that, after receiving early Council feedback, the applicant can decide whether to pursue the legislative amendment, and the other entitlements for their project prior to investing significant cost and resources into a project, with the Council’s preliminary policy considerations in mind. General Plan and Development Code Update as it Relates to the Master Plan Request Following the adoption of the current General Plan on December 15, 2021, the City Council adopted a comprehensive update to the Development Code intended to effectuate the General Plan’s vision. Central to the amendments to the Development Code was the creation of the Form- Based Code (FBC). The FBC establishes place-based standards for certain areas of the City and represents an alternative to conventional zoning, which focuses more on the separation of land uses. In addition to the establishment of the FBC, the Development Code amendment also involved a change to the Official Zoning Map establishing the creation of “Corridor Overlays” within certain form-based zones. These frontage overlays, divided between Corridor Fronting Residential, Commercial or Non-Residential, dictate which type of uses are required along key corridors throughout the city, and correlate to the Corridor Place type established in the General Plan. It is along these corridors where the visual, aesthetic, and economic benefits of the new form-based zoning regulations will be most apparent and obvious. To better realize this development potential, the Development Code stipulates that non-residential floor area ratios (FAR), or the percentage of a project area dedicated to commercial, retail, or non-residential floor area, be set higher within form-based zones than elsewhere in the City, and particularly within the Corridor Overlay, ranging from a minimum of 0.2 in the Center 1 (CE1) zone, to a maximum of 2.0 in the Center 2 (CE2) zone. This means, that depending on the zone within which a parcel is located, the non-residential component of the project would have to dedicate between 20% (0.2 FAR) to 200% (2.0 FAR) of the parcel area to non-residential uses. In March 2023, the prospective developer of 9505 Base Line Road submitted a Courtesy Review application with the Planning and Economic Development Department proposing the potential development of a 50-unit for sale mixed-use townhome project at 9505 Base Line Road located within the Neighborhood General 3 (NG3) zone, within the Neighborhood Corridor General Plan land use designation, but that is not located within the Corridor Overlay. The property is currently improved with an existing single-family house which is currently vacant. See Figure 1. Page 196 of 715 Page 3 1 7 9 4 Figure 1 – Project A Vicinity Map After reviewing the Courtesy Review application, staff noticed that the project did not meet the required non-residential FAR of 0.4-0.6 for the NG3 zone. This standard would require the project area, at 2.3 acres, to provide between approximately 40,000 to 60,000 square feet of non- residential floor area. Instead, the developer has proposed a possible alternative of 10 live/work units which cumulatively total approximately 3,000 square feet of non-residential floor area, which when factored against the site size of the 2.3-acre site equals an approximate 0.03 FAR, which is far below the 0.4-0.6 required FAR for the NG3 zone. In this case, the applicant cites the 0.4- 0.6 FAR requirement for non-residential floor area as burdensome considering the small size of the lot. Thus, the applicant is requesting to develop a master plan for the site that includes site- specific development standards. City staff would work with the property owner to draft development standards and a site plan that is consistent with the General Plan. One such standard would be a unique FAR standard by applying for a “Master Plan” pursuant to Development Code Section 17.22.020.A.2, which “allows for the development of an exceptional project design that cannot be built under an existing zone or due to constraints of existing development standards.” To best facilitate this potential development application, and with the specific objective to flush out major project issues BEFORE a developer commits significant resources to the development process, staff is bringing the subject request before the Council pursuant to the Master Plan policy. To be clear, the prospective applicant for 9505 Base Line Road has not yet submitted a formal development application. As such, please note the City Council is NOT asked to vote on any project at this time, rather each Councilmember may provide comments addressing positive or Base Line Road Base Line Road Amethyst AvenueProject A Subject site 9505 Base Line Road Page 197 of 715 Page 4 1 7 9 4 negative aspects of potential legislative applications, potential issues that should be evaluated by staff, and suggest changes that could make the amendment more acceptable, if any. ANALYSIS: Some of the policy considerations that the Council might consider as part of their initial feedback on the subject project may include neighborhood impacts, economic development, and whether the use is appropriate for the site. Summary of Proposed Legislative Change In this case, the specific legislative change the Council is asked to consider would be reducing the required non-residential floor area for a parcel within the form-based zone which is not located within the Corridor Overlay. Rather than a blanket reduction for all such situated parcels, the Council may consider such reductions on a case-by-case basis, in this case for the subject project at 9505 Base Line Road. Staff notes that, generally, each of the zones are developed to implement the vision of the General Plan, but mitigating factors, like their location along a corridor or street or size, may make all requirements of the zone impractical for certain developments. Thus, the master plan process provides a mechanism to analyze a potential deviation from standards. Pursuant to the master plan policy, staff has compiled a list of “pros” and “cons” for Council’s review as they consider the policy implications related to reducing the required non-residential floor area for the subject parcel. Pros Cons The potential project proposes 50 for-sale units. Due to the small size of the subject parcel, reducing the non-residential floor area requirement may result in a higher yield of for- sale units which would increase the number of for-sale units in the city Utilizing a master plan to adopt a site-specific non-residential floor area that is lower than the Development Code requires may impact economic development potential and jobs growth within the immediate surrounding neighborhood While the project proposes deficient non- residential floor area, it does propose live/work units along the Base Line frontage, would complement the Alta Loma Town Center Focus Area to the north. A master plan that includes a site-specific non- residential FAR could establish a precedent for other mixed-use projects seeking to vary the non-residential FAR. In conclusion, after the administrative hearing, the applicant can determine if they would like to continue through the standard development review process. If the City Council’s input is not positive, staff shall use this feedback to problem solve with the applicant and make recommendations to the developer for project revisions to address input provided or work on a redesigned or different project. In such case, the applicant shall be welcome to an additional review with the City Council to determine if a revised or alternative proposal might be a better solution. FISCAL IMPACT: There is no fiscal impact at this time as this recommendation only involves policy discussions related to certain standards generally and to a potential development application. COUNCIL MISSION / VISION / VALUE(S) ADDRESSED: Page 198 of 715 Page 5 1 7 9 4 Considering the potential application prior to the applicant formally submitting an application as part of the master plan process achieves the Council Core Value of “Working together cooperatively and respectfully with each other, staff, and all stakeholders.” As the applicants are still early in the development process, this discussion with the City Council represents a good faith effort to vet major project concerns and questions prior to the developer investing significant cost and resources into formally proposing development at these sites. ATTACHMENTS: Attachment 1 - CC Policy on Legislative Planning Applications Page 199 of 715 DATE:August 18, 2021 TO:Mayor and Members of the City Council FROM:John R. Gillison, City Manager INITIATED BY:Matt Burris, Deputy City Manager of Community Development SUBJECT:City Policy Pertaining to Early Feedback on General Plan Amendments, Planned Community, Master Plan and Specific Plan Amendments, and Development Code Amendments. (CITY) RECOMMENDATION: Staff recommends that the City Council receive, file and adopt the attached policy on providing early Council feedback on General Plan amendments, Specific Plan, Planned Community or Master Plan Amendments, or Development Code Amendments. BACKGROUND: The General Plan and Development Code are the primary documents that regulate the physical development of the city. Additionally, in many areas of the city, Specific Plans, Planned Communities, and master plans serve to regulate land use in place of the Development Code or as a bridge between the General Plan and the Development Code. These documents regulate land uses, infrastructure, and the mitigation of impacts. Under the Development Code, only the City Council, Planning Commission, Planning Director, or a property owner may initiate applications for these legislative amendments. In many cases, property owners (or their agents) who apply for projects that may require multiple entitlements spend several years and thousands of dollars designing a proposed project before ever knowing whether the City Council has any interest in considering the necessary legislative change for the project. ANALYSIS: While the City typically receives limited applications for legislative changes such as General Plan amendments, there are currently several such applications undergoing review by the Planning Department. These types of legislative approvals can only be granted by the City Council and have separate and distinct policy implications apart from the merits of a project. In order, however, for an application to be considered by the City Council (under present policy and process), that application must first undergo review and analysis by City staff, potential consideration by the Design Review Committee, environmental analysis under CEQA, and consideration by the Planning Commission. This process can easily take up to 18+ months and require an applicant to spend thousands of dollars for design and studies, all before they have any understanding whether the City Council has an interest in approving such a legislative change, which may be necessary before any other entitlements needed for a project may be approved. In practice, staff is finding that this approach causes a greater degree of uncertainty for the applicant and further complicates the development review process for city staff, particularly in situations with competing interests. Page 330 ATTACHMENT 1 Page 200 of 715 Page 2 9 1 7 There is another alternative; some cities allow for an applicant to seek preliminary feedback from the city council in connection with the merits of a General Plan amendment or other legislative changes. After the Council provides its feedback on the proposed legislative amendment, the applicant can decide whether to pursue the legislative amendment, and the other entitlements for the applicant’s proposed project, with the Council’s preliminary policy considerations in mind. This opportunity provides the applicant with more information about whether the proposed project is likely to be successful after the application has been processed by staff. Rancho Cucamonga’s past practice, dating back to the 1980’s, was to request initial authorization by the City Council prior to beginning any amendments to the development code or any Specific Plan, Planned Community or Master Plan that included more than one parcel or project (i.e., Town Square Master Plan). The City abandoned this policy in 2012 intending to streamline the development review process. While it may streamline the process, the new practice also causes a greater degree of uncertainty and further complicates development review, in some cases actually complicating the process. Under the new process, a detailed description of the applicant’s project shall not be required. Staff will work with the City Attorney to analyze the provided information, provide a list of pros and cons, and a staff recommendation to the City Council on only the legislative change for their consideration. The staff report shall include specific language indicating the pre-application review is not an approval nor a guarantee of approval, that staff and the Planning Commission may recommend against, and the City Council may ultimately vote against or not support the project at the project hearings once additional details and analysis become available in the future. While the City Council would not vote on the project at the time of this administrative hearing, each Councilmember may provide comments addressing positive or negative aspects of the amendment, potential issues that should be evaluated by staff, and suggested changes that could make the amendment more acceptable, if any. The City Council’s comments should focus on the policy implications of the General Plan amendment rather than the project itself. The City Council will not vote on any aspect of the amendment or project, as the intent of the preliminary review process is informational only. Staff will take the feedback provided by the City Council into consideration to help inform further staff analysis, possible conditions or modifications to the project, the recommendation to the Planning Commission, and ultimately the recommendation to the City Council. Staff shall provide a letter to the applicant following the administrative hearing memorializing the input and results of the hearing. The Applicant may then take that information into account in deciding whether to move forward in the process. After the administrative hearing, the application will move through the standard development review process for review by the Design Review Committee, the Planning Commission, and the City Council per our current process. This policy shall only apply to private property owners and shall not apply to any City initiated legislative changes. Staff reports on legislative changes shall be prepared and presented only by the Planning Director, the Deputy City Manager of Community and Economic Development, the City Attorney, and the City Manager. The staff report may discuss the proposed project in general terms, but the staff recommendation will only address the General Plan amendment. It is important to note that an initial City Council direction on a legislative change is not an approval and does not guarantee an approval. It would not involve any consideration of a particular project. Put more simply, it would only give the Council an opportunity to consider the policy implications Page 331Page 201 of 715 Page 3 9 1 7 of changing the General Plan, Specific Plan, Master Plan, Community Plan, or Development Code, as the case may be. Some of the policy considerations that the Council might consider as part of this initial feedback may include neighborhood impacts, economic development, and whether the use is appropriate for the site. This change creates an opportunity to provide staff and applicants with such feedback before thousands of hours, dollars, and years are spent processing an application. As such, staff recommends re-establishing the City’s prior policy to bring requests for all General Plan amendments, Specific Plan amendments, and Development Code changes requested by owners of real property or their authorized representatives to the City Council for an initial round of feedback. An applicant would still be required to conduct the same CEQA analysis and go through the same development and environmental review if it decides to pursue its applications further. This policy will not apply to any current applications that have been deemed complete. FISCAL IMPACT: No fiscal impact. COUNCIL MISSION / VISION / GOAL(S) ADDRESSED: This policy helps realize the City Council’s vision for creating a world class community and the City Council value of “Equitable prosperity for all” by helping to identify and remove barriers within the City’s Development Review process. ATTACHMENTS: Attachment 1 - Legislative Changes Review Policy Page 332Page 202 of 715 ATTACHMENT 1 DATE:August 18, 2021 TO:Anne McIntosh, Planning Director FROM:Matthew Burris, Deputy City Manager of Community Development SUBJECT:Legislative Changes and Amendments Policy PURPOSE: To re-establish a policy for initiating General Plan amendments, Specific Plan amendments, and Development Code amendments requested by builders and developers. BACKGROUND: The General Plan and Development Code are the primary documents that regulate the physical development of the city. Additionally, in many areas of the city, Specific Plans serve to regulate land use in place of the Development Code. These documents regulate land uses, infrastructure, and the mitigation of impacts. The City’s past practice, dating back to the 1980s, was to request authorization by the City Council to initiate any amendments to the development code or any Specific Plan, Planned Community, or Master Plan that includes more than one parcel or project (i.e., Town Square Master Plan). This policy allowed for discussion of the pros and cons of such requests and consideration for larger policy implications. The City abandoned this practice in 2012 with the intent of streamlining the development review process. However, currently, staff is finding that this approach causes a greater degree of uncertainty and further complicates development review. It results in applicants spending many years and thousands of dollars designing a proposed project before ever knowing whether the City Council may even desire considering such legislative changes. POLICY: An application for a legislative change, such as a General Plan amendment, that is initiated by a private property owner shall be recommended for an administrative hearing before the City Council as the first step in the Development Review process. The Planning Director shall schedule a preliminary review hearing before the City Council once the applicant has provided enough information about the proposed amendment and related project to permit the Planning Director to prepare a staff report for the hearing. This information shall include, but is not limited to, a statement explaining the applicant’s reason for requesting the General Plan amendment, the proposed change in land use designations on the parcel(s), the project’s proposed uses and density, and any other project parameters associated with the amendment that are deemed necessary by the Planning Director. A detailed description of the applicant’s project shall not be required. Staff will work with the City Attorney to analyze the provided information, provide a list of pros and cons, and a staff recommendation to the City Council on only the legislative change for their consideration. The staff report shall include specific language indicating the pre-application review is not an approval nor a guarantee of approval, that staff and the Planning Commission may recommend against, and the City Council may ultimately vote against or not support the project at the project hearings once additional details and analysis become available in the Page 333Page 203 of 715 Page 2 1 5 9 5 future. While the City Council would not vote on the project at the time of this administrative hearing, each Councilmember may provide comments addressing positive or negative aspects of the amendment, potential issues that should be evaluated by staff, and suggested changes that could make the amendment more acceptable, if any. The City Council’s comments should focus on the policy implications of the General Plan amendment rather than the project itself. The City Council will not vote on any aspect of the amendment or project, as the intent of the preliminary review process is informational only. Staff will take the feedback provided by the City Council into consideration to help inform further staff analysis, possible conditions or modifications to the project, the recommendation to the Planning Commission, and ultimately the recommendation to the City Council. Staff shall provide a letter to the applicant following the administrative hearing memorializing the input and results of the hearing. The Applicant may then take that information into account in deciding whether to move forward in the process. If an applicant does not want to go to City Council for the preliminary review and insists on a full hearing on the project merits, they shall sign an At Risk Waiver acknowledging they had the opportunity to go to the City Council on the legislative change but chose to decline. That document will become part of the entitlement package and administrative record. After the administrative hearing, alternatively, after signing an At Risk Waiver, the application will move through the standard development review process for review by the Design Review Committee, the Planning Commission, and the City Council per our current process. If the City Council’s input is not positive, staff shall use the City Council’s feedback to problem solve with the applicant and work on a redesigned or different project. In such case, the Applicant shall be welcome to an additional review with the City Council to determine if a revised or alternative proposal might be a better solution. This policy shall only apply to private property owners and shall not apply to any City initiated legislative changes. Staff reports on legislative changes shall be prepared and presented only by the Planning Director, the Deputy City Manager of Community and Economic Development, the City Attorney, and the City Manager. The staff report may discuss the proposed project in general terms, but the staff recommendation will only address the General Plan amendment. The City shall not charge a fee for the administrative hearing and will expedite scheduling a hearing date. The Planning Department shall provide the applicant at least ten (10) days written notice of the hearing date and time. Page 334Page 204 of 715 Page 335Page 205 of 715 Page 336Page 206 of 715 City Council July 19, 2023 Preliminary Review Hearing Recommendation Pursuant to adopted policy on Master Plan applications,staff is asking the Council to consider the following: •Approve staff's recommendation to consider policy implications of reducing a non- residential floor area standard for a specific site at 9505 Base Line Road ; •Authorize the developer to proceed understanding that this is not an approval or guarantee of an approval;and •Direct staff to immediately analyze non-residential standards for mixed-use projects and consider a Development Code Amendment to that affect. Background •August 2021 -Council adopts policy related to certain applicant-initiated applications (i.e.Master Plans,etc.) •December 2021 –Council adopts current General Plan followed by comprehensive Development Code Update in May 2022. •March 2023 –prospective developer seeks to develop subject parcel and requests a master plan application Pause: What is a Master Plan? In short,this is a tool which allows a developer to establish site specific development standards for a project area. Policy Analysis Facts : •The applicant proposes 50 for-sale units located on a 2.3-acre parcel addressed 9505 Base Line,located within the NG3 form -based zone ; •The NG3 zone requires non-residential floor area ratio (FAR)standard of 0.4-0.6 which would mean 40,000-60,000 sf of non-residential area on a 2.3-acre parcel; •Rather,applicant proposes 10 live/work units which propose 3,000 sf of non- residential area,or only 0.03 FAR •Thus,the applicant has requested a master plan in order to establish a development plan for the site,including a site-specific non-residential FAR .”. Policy Analysis (Cont.) For Council’s Consideration: •Are there neighborhood impacts? •Economic development impacts? •Is this request appropriate for the site? Conclusion/Next Steps Following the Preliminary Review Hearing: •Based on Council feedback,developer determines on their own if they would like to continue through the development review process; •If Council’s input is NOT positive,staff may use this to “problem-solve”with the applicant and revise project. THIS IS NOT AN APPROVAL,NOR A GUARANTEE OF FUTURE APPROVAL, NOR GUARANTEE OF A FUTURE RECOMMENDATION OF APPROVAL FROM STAFF.RATHER,THIS IS SIMPLY A PRELIMINARY REVIEW TO DISCUSS POTENTIAL POLICY IMPLICATIONS Recommendation Staff is asking the Council to consider the following: •Approve staff's recommendation to consider policy implications of reducing a non- residential floor area standard for a specific site at 9505 Base Line Road ; •Authorize the project to move forward understanding that this is not an approval or guarantee of an approval;and •Direct staff to immediately analyze non-residential standards for mixed-use projects and consider a Development Code Amendment to that affect. Questions? DATE:July 19, 2023 TO:Mayor and Members of the City Council FROM:John R. Gillison, City Manager INITIATED BY:Noah Daniels, Finance Director Kelly Guerra, Special Districts Analyst SUBJECT:Public Hearing of the City of Rancho Cucamonga to Consider Resolutions Confirming the Diagrams and Assessments and Ordering the Levy and Collection of Annual Assessments for Landscape Maintenance Districts; Street Lighting Maintenance Districts; and Park and Recreation Improvement District No. PD-85 for Fiscal Year 2023/24. (RESOLUTION NOS. 2023-087, 2023-088, 2023-089) (CITY) RECOMMENDATION: It is recommended that the City Council conduct a public hearing to consider Resolutions to confirm the diagrams and assessments and order the levy and collection of annual assessments for Landscape Maintenance District Nos. 1, 2, 3B, 4-R, 6-R, 7, 8, 9, and 10 (“LMD”); Street Lighting Maintenance District Nos. 1, 2, 3, 4, 5, 6, 7, and 8 (“SLD”); and Park and Recreation Improvement District No. PD-85 (PD-85) (collectively, the “Districts”). The Resolutions should be considered after conducting a public hearing to receive public comment. BACKGROUND: The City of Rancho Cucamonga oversees the management of Districts, which involves determining the assessment rates that property owners must pay. These annual assessments are included in property tax bills and contribute to the maintenance and operation of parks, landscaping, and streetlights in their communities. To establish the assessment rates for the upcoming fiscal year, the City Council follows a process that includes several steps for the Districts: 1. The City Council initiates the creation of the Annual Engineer’s Report. 2. The City Council reviews and accepts the preliminary Annual Engineer’s Report. 3. The City Council announces its intention to levy annual assessments and sets a date and location for a public hearing. 4. The City Council conducts a public hearing and takes action to confirm the Districts and determine the assessments for the upcoming fiscal year. On June 7, 2023, The City Council adopted resolutions ordering and approving the preparation of the preliminary Annual Engineer’s Reports for the levy of annual assessments for each District. On that date, the City Council also adopted resolutions setting a public hearing for July 19, 2023. Page 207 of 715 Page 2 1 9 1 5 At this time, the City Council must conduct a public hearing, then after the public hearing, may consider adopting resolutions confirming the assessment levy as recommended. Once the resolutions are adopted, the Districts will be reaffirmed for the upcoming fiscal year, and the assessments will be added to the San Bernardino County tax rolls before the August deadline. These assessments will appear separately on each parcel’s property tax bill. The recommended rates were developed as part of the Fiscal Year 2023/24 budget process, and the projected revenues for each District are reflected in the budget adopted on June 22, 2023. ANALYSIS: The June 7, 2023 staff report provided analysis for the Districts’ recommended Fiscal Year 2023/24 assessment rates. There have been no changes to those recommended Fiscal Year 2023/24 assessment rates or the content provided in the Annual Engineer’s Reports. In Fiscal Year 2023/24, the following Districts will receive “General Benefit Equivalent” contributions from the City’s General Fund to ensure the provision and essential services to the community. The City Council approved these contributions by adopting the Fiscal Year 2023/24 budget to support the Districts which are in structural financial deficit, meaning the Districts cannot increase assessment rates to offset rising costs. Per City policy, the amount of the General Benefit Equivalent will not exceed 11% of the adjusted total budget. •LMD 1: A contribution of $66,960. •LMD 6-R: A contribution of $42,740. •SLD 2: A contribution of $96,900. •SLD 5: A contribution of $19,940. •SLD 7: A contribution of $21,590. •PD-85: A contribution of $112,000, allocated as $32,700 for the operations of Red Hill and Heritage Parks and $79,300 for the Red Hill Water Feature. Additionally, the City’s General Fund will make its “General Benefit Contribution” to LMD 2 as mandated by law after voter-approved rate increases. This contribution quantifies the monetary value of a general benefit the District provides to the overall community. For Fiscal Year 2023/24, LMD 2 is budgeted to receive a General Benefit Contribution of $369,270 following a measure approved by the voters. The table below displays a summary of the maximum assessment rate, the current assessment rate, and the recommended assessment rate for Fiscal Year 2023/24 based on the analysis performed during the budget process for the Districts. District Maximum Assessment Rate Current Assessment Rate Recommended Assessment Rate (FY 2023/24)Notes LMD 1 (General City) $92.21 $92.21 $92.21 A rate increase would require voter approval. LMD 2 (Victoria Neighborhoods Parks) $579.73 $518.88 $544.82 Recommend a 5.0% increase to reflect inflation costs and planned capital improvement projects. LMD 3B (Commercial Industrial) $352.80 $282.24 $282.24 No change is recommended. Page 208 of 715 Page 3 1 9 1 5 District Maximum Assessment Rate Current Assessment Rate Recommended Assessment Rate (FY 2023/24)Notes LMD 4-R (Terra Vista Planned Community) $516.80 $397.15 $417.01 Recommend a 5.0% increase to reflect inflation costs and planned capital improvement projects. LMD 6-R (Caryn Planned Community) $490.21 $475.93 $490.21 Recommend a 3.0% increase for the operating financial gap. Note LMD 6-R receives a subsidy from the General Fund. LMD 7 (North Etiwanda) $307.05 $307.05 $307.05 A rate increase would require voter approval. LMD 8 (South Etiwanda) $151.45 $151.45 $151.45 A rate increase would require voter approval. LMD 9 (Lower Etiwanda) $694.36 $311.92 $311.92 No change is recommended. LMD 10 (Rancho Etiwanda) $1,068.49 $804.92 $845.17 Recommend a 5.0% increase to reflect inflation costs and planned capital projects. SLD 1 (Arterials) $17.77 $17.77 $17.77 A rate increase would require voter approval. SLD 2 (Local Streets) $39.97 $39.97 $39.97 A rate increase would require voter approval. SLD 3 (Victoria Planned Community) $47.15 $47.15 $47.15 A rate increase would require voter approval. SLD 4 (Terra Vista Planned Community) $28.96 $28.96 $28.96 A rate increase would require voter approval. SLD 5 (Caryn Planned Community) $34.60 $34.60 $34.60 A rate increase would require voter approval. SLD 6 (Commercial Industrial) $51.40 $51.40 $51.40 A rate increase would require voter approval. SLD 7 (North Etiwanda) $33.32 $33.32 $33.32 A rate increase would require voter approval. SLD 8 (South Etiwanda) $193.75 $30.60 $30.60 No change is recommended. PD-85 (Red Hill and Heritage Parks) $31.00 $31.00 $31.00 A rate increase would require voter approval. FISCAL IMPACT: Assessment revenues collected for each District are dedicated to its maintenance, operations, and capital improvements. The Annual Engineer’s Report outlines the estimated costs for each District. Some Districts receive additional support from the City General Fund due to legal Page 209 of 715 Page 4 1 9 1 5 requirements (General Benefit Contribution) or City policy (General Benefit Equivalent). The City Council approves these budgeted amounts during the budget approval process. COUNCIL MISSION / VISION / VALUE(S) ADDRESSED: This item addresses the City Council’s core value of intentionally embracing and anticipating the future by highlighting the City Council’s commitment to reporting assessment revenues and providing public services. It also emphasizes the City Council actively seeking and considering public input about the financial sustainability of the Districts. ATTACHMENTS: Attachment 1 – Annual Engineer’s Report LMD 1 Attachment 2 – Annual Engineer’s Report LMD 2 Attachment 3 – Annual Engineer’s Report LMD 3B Attachment 4 – Annual Engineer’s Report LMD 4-R Attachment 5 – Annual Engineer’s Report LMD 6-R Attachment 6 – Annual Engineer’s Report LMD 7 Attachment 7 – Annual Engineer’s Report LMD 8 Attachment 8 – Annual Engineer’s Report LMD 9 Attachment 9 – Annual Engineer’s Report LMD 10 Attachment 10 – Annual Engineer’s Report SLD 1 Attachment 11 – Annual Engineer’s Report SLD 2 Attachment 12 – Annual Engineer’s Report SLD 3 Attachment 13 – Annual Engineer’s Report SLD 4 Attachment 14 – Annual Engineer’s Report SLD 5 Attachment 15 – Annual Engineer’s Report SLD 6 Attachment 16 – Annual Engineer’s Report SLD 7 Attachment 17 – Annual Engineer’s Report SLD 8 Attachment 18 – Annual Engineer’s Report PD-85 Attachment 19 – Resolution LMDs Ordering the Levy and Collection of Special Assessment Attachment 20 – Resolution SLDs Ordering the Levy and Collection of Special Assessment Attachment 21 – Resolution PD 85 Ordering the Levy and Collection of Special Assessment Page 210 of 715 ATTACHMENT 1 Annual Engineer’s Report Fiscal Year 2023/24 City of Rancho Cucamonga Landscape Maintenance District No. 1 (General City) Page 211 of 715 CITY OF RANCHO CUCAMONGA LANDSCAPE MAINTENANCE DISTRICT NO. 1 (GENERAL CITY) 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909.477.2700 Fax: 909.477.2845 CITY COUNCIL L. Dennis Michael, Mayor Lynne B. Kennedy, Mayor Pro Tem Ryan A. Hutchison, Council Member Kristine D. Scott, Council Member Ashley N. Stickler, Council Member CITY STAFF John R. Gillison, City Manager Elisa Cox, Assistant City Manager Jason C. Welday, Director of Engineering Services/City Engineer William Wittkopf, Public Works Director Noah Daniels, Finance Director Page 212 of 715 TABLE OF CONTENTS ENGINEER’S LETTER 1 INTRODUCTION 3 Reason for Assessment 3 Process for Annual Assessment 3 PLANS AND SPECIFICATIONS 4 Description of the Boundaries of the District 4 Description of Improvements and Services 4 Map of Improvements 20 ESTIMATE OF COSTS 21 District Budget 22 Definitions of Budget Items 24 METHOD OF ASSESSMENT 25 Overview 25 General Benefit 26 Special Benefit 26 Method of Assessment Spread 27 ASSESSMENT DIAGRAM 28 ASSESSMENT ROLL AND ANNEXATIONS 30 Assessment Roll 30 Annexations 30 Page 213 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 1 – City of Rancho Cucamonga 1 Fiscal Year 2023/24 ATTACHMENT 1 ENGINEER’S LETTER WHEREAS, on June 7, 2023, the City Council of Rancho Cucamonga (the “City”), under the Landscape and Lighting Act of 1972 (the “1972 Act”) adopted its Resolution No. 2023-055, a Resolution Initiating Proceedings for the Levy of Annual Assessments for Landscape Maintenance District No. 1 (General City) (the “District”); and WHEREAS, the Resolution Initiating Proceedings directed staff to prepare and file an Annual Engineer’s Report for Fiscal Year 2023/24 pursuant to the requirements of the 1972 Act. The Annual Engineer’s Report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the maintenance, operations and servicing of the improvements for the District for the referenced fiscal year, a diagram for the District showing the area and properties proposed to be assessed, and an assessment of the estimated costs of the maintenance, operations and servicing of the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received; and NOW THEREFORE, the following assessment is proposed to be authorized in order to pay the estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the boundaries of the District in proportion to the special benefit received. The following table summarizes the proposed assessment. Fiscal Year 2023/24 Budget Expe nditure s Pers onnel Servic es 45,540$ Operations and Maintenanc e 1,451,470 Capital Expenditures 256,520 Transfer Out 90,000 T otal Expe nditure s Budge t 1,843,530 Re v e nue s Taxes : Es tim ated As s essm ents , Net of Estimated Delinquenc ies 1,256,110 Antic ipated Prior Year Delinquencies Collec tion 12,220 Subtotal - Taxes 1,268,330 Other Revenues 91,430 Transfer In 249,580 T otal Re v e nue s Budge t 1,609,340 Contribution to/(Use of) Fund Balance (234,190)$ Total District EBU Count 13,621.67 Ac tual Asses s m ent per EBU 92.21$ Maxim um Allowable As s ement per EBU 92.21$ Page 214 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 1 – City of Rancho Cucamonga 2 Fiscal Year 2023/24 ATTACHMENT 1 In making the assessments contained herein pursuant to the 1972 Act: 1. I have identified all parcels which will have a special benefit conferred upon them from the improvement described in the Special Benefit Section of this Annual Engineer’s Report (the “Specially Benefited Parcels”). For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is included in this Annual Engineer’s Report. 2. I have evaluated the costs and expenses of the improvements upon the Specially Benefited Parcels. In making such evaluation: a. The proportionate special benefit derived by each Specially Benefited Parcel from the improvements was determined in relationship to the entirety of the maintenance costs of the improvements; b. No assessment has been imposed on any Specially Benefited Parcel which exceeds the reasonable cost of the proportional special benefit conferred on such parcel from the improvements; and c. Any general benefits from the improvements have been separated from the special benefits and only special benefits have been assessed. I, the undersigned, respectfully submit the enclosed Annual Engineer’s Report and, to the best of my knowledge, information and belief, I certify that the Annual Engineer’s Report and Assessment Diagram included herein have been prepared and computed in accordance with the order of the City Council of the City of Rancho Cucamonga and the Assessment Law. Jason C. Welday Director of Engineering Services/City Engineer Page 215 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 1 – City of Rancho Cucamonga 3 Fiscal Year 2023/24 ATTACHMENT 1 INTRODUCTION Reason for Assessment Approval of the assessment covered by this Engineer’s Report will generate the revenue necessary to: Provide for the maintenance and servicing of the improvements described in this Engineer’s Report. Maintenance may include, but is not limited to, all of the following: the upkeep, repair, removal or replacement of all or any part of any improvement or facility such as paseos, community trails, fencing and irrigation systems, and providing for the growth, vigor and care of the trees and landscape plant materials. Servicing means the furnishing of electricity, gas or other illuminating energy for the lighting of landscape or appurtenant facilities. This shall also include material, vehicle, equipment, capital improvements and administrative costs associated with the annual administration and operation of the District. Process for Annual Assessment The City cannot levy and collect annual assessments within the District without complying with the procedures specified in the 1972 Act. On an annual basis, an Engineer’s Report must be prepared which contains a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. The City Council must also adopt a resolution of intention which: •Declares the intention of the City Council to levy and collect assessments within the District for the fiscal year stated therein. •Generally describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements. •Refers to the District by its distinctive designation and indicate the general location of the District. •Refers to the Engineer’s Report, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. •Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment. •States whether the assessment is proposed to increase from the previous year. If the assessments are to be levied in the same or lesser amounts than the maximum assessment amount approved, the City Clerk shall give notice by causing the resolution of intention to be published. Any interested person may, prior to the conclusion of the public hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. During the course or upon Page 216 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 1 – City of Rancho Cucamonga 4 Fiscal Year 2023/24 ATTACHMENT 1 conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including the improvements, to the zones within the District, and the proposed diagram or the proposed assessment. The City Council, upon conclusion of the public hearing, must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the assessment. If the assessment to be levied exceeds the maximum assessment amount previously approved, the City must comply with the procedures specified in Article XIII D and Proposition 218. The voters in the State of California in November 1996 added Article XIII D to the California Constitution imposing, among other requirements, the necessity for the City to conduct an assessment ballot procedure to enable the owners of each property on which assessments are proposed to be enacted or increased, the opportunity to express their support for, or opposition to, the proposed assessment or increase in such assessment. PLANS AND SPECIFICATIONS The District provides for the administration, maintenance, operations, and servicing of various improvements located within the public right-of-way and dedicated easements within the boundaries of the District. Description of the Boundaries of the District The District is located in the City of Rancho Cucamonga, State of California. The boundaries of the District are generally described as that area of the City which is not located within the City's planned development communities. The District is made up of various landscaped sites throughout the City. As such, the parcels within the District do not represent a distinct district area as do the other landscape maintenance districts within the City. Typically parcels have been annexed to the District as they have developed. Reference is also made to the Assessment Diagram included in this Report. Description of Improvements and Services The improvements maintained by the District include the paseos, community trails, trees, landscaped sites and appurtenant facilities that are throughout the District. These improvements are located within the street right-of-ways and dedicated public easements which are within the boundaries of the District. The landscaping maintenance includes, but is not limited to, the pruning, fertilizing, mowing, weeding, pest control, removal of trash/debris, and irrigation of the trees, shrubs, vines, ground cover, and turf. Maintenance of associated improvements and facilities, such as community trails, fencing and irrigation systems, includes but is not limited to, grading and replacement of trail surfacing, trail fence repair and replacement, steel fence painting, repair and replacement, and irrigation systems control, adjustment, trouble-shooting, repair and Page 217 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 1 – City of Rancho Cucamonga 5 Fiscal Year 2023/24 ATTACHMENT 1 replacement. Services include personnel, materials, contracting services, utilities, capital projects and all necessary costs associated with the maintenance, replacement and repair required to keep the improvements in a healthy, vigorous and satisfactory condition. In addition, it is the City's intention to continue to use cost effective materials, including the future ability to replace landscaping with drought resistant or low water use plants, in order to lower expenses of the District. The breakdown of maintained areas is as follows: Parks: Bear Gulch Park, East and West Beryl Park, Old Town Park, Church Street Park, Golden Oaks Park, Hermosa Park, and the undeveloped Don Tiburcio Tapia Park. Site #Descriptive Location A-1 The north and south side of Wilson Ave from Hellman Ave to Amethyst Ave. Ground Cover area:22,982 square feet Hardscape area: 5,694 square feet A-2 The east side of Hellman Ave from 326 feet south of Pepperidge Ln to 73 feet north of Pepperidge Ln. Ground Cover area:5,810 square feet Hardscape area:1,600 square feet A-3 The south side of 19th St from 62 feet east of Mayberry Ave to 173 feet east of Mayberry Ave. Ground Cover area:1,680 square feet Hardscape area: 440 square feet A-4 The south side of Wilson Ave from Amethyst Ave to Archibald Ave; the planters and cutouts on the west side of Archibald Ave from Wilson Ave to 105 feet south of Cottonwood Way. Ground Cover area:5,625 square feet A-5 The north and south side of Diamond Ave from Klusman Ave to Diamond Ave. Ground Cover area:3,143 square feet Hardscape area:1,864 square feet A-6 The parkway on the north side of Wilson Ave from 348 feet east of Morning Canyon Way to Alder Ridge Pl. Ground Cover area:5,700 square feet Hardscape area:4,760 square feet Page 218 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 1 – City of Rancho Cucamonga 6 Fiscal Year 2023/24 ATTACHMENT 1 A-7 The cutouts and vines on the south side of Wilson Ave from the Alta Loma Channel to 240 feet east of Zapata Pl. Ground Cover area:911 square feet A-8 The east side of Broken Star Ct from 80 feet south of Highland Ave to Highland Ave; the north side of Highland Ave from Amethyst Ave to Broken Star Ct including wood chip area north of sidewalk, the south side of Highland Ave from Broken Star Ct to Amethyst Ave; the west side of Amethyst Ave from 140 feet south of Highland Ave to 265 feet south of Highland Ave. Ground Cover area: 6,545 square feet Hardscape area: 2,554 square feet Mulchscape area:14,005 square feet A-9 The south side of Highland Ave from Hellman Ave to Broken Star Ct. Ground Cover area:7,865 square feet A-10 The south side of 19th St from 170 feet west of Pilgrim Ct to 167 feet east of Pilgrim Ct. Ground Cover area:1,808 square feet Hardscape area:1,084 square feet A-11 The east side of Amethyst Ave from Lemon Ave to 230 feet north of Apricot Ave. Ground Cover area:2,115 square feet Hardscape area:3,438 square feet A-12 The west side of Sapphire St from 710 feet north of Hillside Rd to Hillside Rd. Ground Cover area:4,500 square feet A-13 The south side of Victoria St from 110 feet west of London Ave to Ramona Ave. Ground Cover area:2,705 square feet Hardscape area:3,480 square feet A-14 The west side of Archibald Ave from 273 feet north of La Gloria Dr to Lemon Ave; the La Gloria Dr median from Archibald Ave to Jadeite Ave; the north and south side of La Gloria Dr from Archibald Ave to 53 feet east of Jadeite Ave; the north side of Lemon Ave from Archibald Ave to 55 feet east of Klusman Ave. Ground Cover area:12,880 square feet Hardscape area:12,030 square feet Page 219 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 1 – City of Rancho Cucamonga 7 Fiscal Year 2023/24 ATTACHMENT 1 A-15 The planters and cutouts on the east side of Archibald Ave from 610 feet south of Cottonwood Way to Wilson Ave; the south side of Wilson Ave from Archibald Ave to Alta Loma Channel. Ground Cover area:2,110 square feet A-16 The cutouts and planters on the east side of Archibald Ave from Banyan St to 190 feet north of Sunflower St. Ground Cover area:1,580 square feet A-17 The cutouts and planters on the west side of Archibald Ave from 225 feet south of Wilson Ave to Banyan St. Ground Cover area:2,362 square feet A-18 The cutouts and planters on the north side of Banyan St from Jadeite Ave to 410 feet west of Jadeite Ave. Ground Cover area:216 square feet A-19 The cutouts and planters on the east side of Amethyst Ave from 192 feet south of Sunflower St to Manzanita Dr. Ground Cover area:4,325 square feet A-20 The west side of Archibald Ave from 210 feet north of La Colina Dr to 230 feet south of Almond St; the south side of La Colina Dr from Archibald Ave to Jadeite Ave. Ground Cover area:17,120 square feet A-21 The planter adjacent to the equestrian trail from Riverwood Pl to Raspberry Pl north of the County flood retention basin that is west of Chaffey College. Ground Cover area:22,832 square feet A-22 The west side of Haven Ave from Carrari St to Vista Grove St. Ground Cover area:4,572 square feet A-23 The west side of Haven Ave from 434 feet north of Manzanita Dr to 258 feet south of Manzanita Dr. Ground Cover area:54,258 square feet Hardscape area: 4,581 square feet A-24 The south side of 19th St from 286 feet east of Amethyst Ave to 166 feet west of Klusman Ave. Ground Cover area:5,904 square feet Hardscape area:2,938 square feet Page 220 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 1 – City of Rancho Cucamonga 8 Fiscal Year 2023/24 ATTACHMENT 1 A-25 The equestrian trail and planters on the east side of Hermosa Ave from 421 feet south of Whispering Forest Dr to Sun Valley Dr. Ground Cover area:17,529 square feet A-26 The west side of Haven Ave from 630 feet north of Wilson Ave to Wilson Ave; the parkway on the north side of Wilson Ave from Haven Ave to Mayberry Ave; the parkway on the east side of Mayberry Ave from Wilson Ave to 382 feet north of Poplar St, and the east and west side of Cartilla Ave from Wilson Ave to Poplar St. Ground Cover area:10,243 square feet Mulchscape area:25,297 square feet A-27 The north side of 19th St from Mayberry Ave to 93 feet east of Castle Gate Pl. Ground Cover area:5,145 square feet Hardscape area:2,870 square feet A-28 The east side of Hermosa Ave from 360 feet south of Manzanita Dr to Manzanita Dr, and the south side of Manzanita Dr from Hermosa Ave to Raspberry Pl. Ground Cover area:7,421 square feet Hardscape area:4,712 square feet A-29 The south side of Wilson Ave from 240 feet west of Timbermist Pl to Hermosa Ave; the west side of Hermosa Ave from Wilson Ave to 213 feet south of Oakgrove Dr. Ground Cover area:11,184 square feet A-30 Site was removed from contract and water service cancelled January 1, 2017. A-31 The south side of Lemon Ave from London Ave to Calle Hermoso. Ground Cover area:4,404 square feet Hardscape area:1,800 square feet A-32 The north side of Lemon Ave from the Alta Loma Channel to London Ave; the east side of London Ave from Lemon Ave to Cypress Ct. Ground Cover area:4,463 square feet Hardscape area:3,375 square feet A-33 The parkway on the east side of London Ave from 158 feet north of Banyan St to 310 feet north of Banyan St. Ground Cover area:1,029 square feet Hardscape area:1,160 square feet Page 221 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 1 – City of Rancho Cucamonga 9 Fiscal Year 2023/24 ATTACHMENT 1 A-34 The south side of Alta Loma Dr from Mayberry Ave to Revere Ave. Ground Cover area:2,772 square feet A-35 The west side of Hermosa Ave from Lemon Ave to 125 feet north of Highland Ave, the parkway on the south side of Lemon Ave from 621 feet west of Hermosa Ave to Hermosa Ave. Ground Cover area:10,494 square feet Hardscape area: 9,207 square feet Mulchscape area: 2,370 square feet A-36 The south side of Lemon Ave from 385 feet west of Mayberry Ave to Cartilla Ave. Ground Cover area: 4,850 square feet Hardscape area: 4,915 square feet A-37 The south side of Hillside Rd north and south of the equestrian trail from Beryl St to 203 feet east of Eastwood Ave. Ground Cover area:4,900 square feet A-38 The median in the 9200 block of Monte Vista St. Ground Cover area: 500 square feet Hardscape area:1,380 square feet A-39 The south side of Almond St from Henry St to Sapphire St. The west side of Sapphire St from Almond St to 255 feet south of Bella Vista Dr. Ground Cover area:6,926 square feet A-40 The parkway on the east side of Jasper St from Hunter Dr to Highland Ave. The parkway on the south side of Highland Ave from Jasper St to Carnelian St. The west side of Carnelian St from Highland Ave to 210 feet south of Highland Ave. Ground Cover area:14,858 square feet Hardscape area: 6,040 square feet A-41 The west side of Sapphire St from 236 feet north of Thoroughbred St to Banyan St. Ground Cover area:1,784 square feet Hardscape area: 812 square feet A-42 The parkway on the west side of Beryl St from 132 feet north of Sunflower St to Banyan St. Ground Cover area:4,735 square feet Hardscape area:5,772 square feet Page 222 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 1 – City of Rancho Cucamonga 10 Fiscal Year 2023/24 ATTACHMENT 1 A-43 The north side of Base Line Rd from Topaz St to the Cucamonga Creek Channel. Ground Cover area:4,563 square feet Hardscape area:1,890 square feet A-44 The cutouts on the west side of Sapphire St from Banyan St to Marble Ave. Ground Cover area:7,300 square feet A-45 The mainline for this site was connected to A-46 on September 8, 1999. A-46 The south side of Banyan St from Northstar Pl to Zircon Ave. Ground Cover area:7,448 square feet Hardscape area:7,890 square feet A-47 The cutouts and vines on the north side of Banyan St from 180 feet east of Zircon Ave to 186 feet west of Vineyard Ave. Ground Cover area:1,300 square feet A-48 The parkway on the west side of Beryl St from 452 feet north of Cielito St; 158 feet south of Cielito St and the easement between 9063 and 9073 Cielito St from Cielito St to 170 feet south of Cielito St. Ground Cover area:6,916 square feet Hardscape area:2,440 square feet A-49 The east side of Carnelian St from 662 feet south of Banyan St to Banyan St; the south side of Banyan St from Carnelian St to Northstar Pl. Ground Cover area:5,906 square feet Hardscape area:6,972 square feet A-50 The north side of Almond St from Sapphire St to Crestview Pl; the east and west side of Skyline Rd from Almond St to 595 feet north of Almond St. Ground Cover area:17,600 square feet Hardscape area: 8,680 square feet A-51 The planter adjacent to the equestrian trail; from Haven Ave to Riverwood Pl, north of County flood retention basin, west of Chaffey College. The west side of Haven Ave from 400 feet north of Amber Ln to 270 feet south of Amber Ln, and the north and south side of Amber Ln from Haven Ave to San Felipe Ct. Ground Cover area:37,977 square feet Hardscape area: 5,458 square feet Page 223 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 1 – City of Rancho Cucamonga 11 Fiscal Year 2023/24 ATTACHMENT 1 A-52 The east side of Riverwood Pl, from 188 feet south of Charwood Ct to 193 feet north of Charwood Ct. Ground Cover area:2,750 square feet Hardscape area:1,698 square feet A-53 The west side of Jasper St from Hunter Dr to Highland Ave. The south side of Highland from Jasper St to 308 feet west of Sard St. The east and west side of Sard St from Highland Ave to Hunter Dr. Ground Cover area:7,445 square feet Hardscape area:4,740 square feet A-54 The west side of Beryl St from 233 feet north of Mignonette St to Mignonette St. Ground Cover area:2,637 square feet Hardscape area: 932 square feet A-55 The north side of 19th St from Cartilla Ave to Mayberry Ave. The east side of Mayberry Ave from 19th St to Heather St. Ground Cover area:8,410 square feet Hardscape area:5,060 square feet A-56 The east side of Beryl St from 410 feet north of Wilson Ave to Wilson Ave. The north side of Wilson Ave from Beryl St to 731 feet west of Buckthorn Ave. The south side of Wilson Ave from Buckthorn Ave to Beryl St. Ground Cover area:19,708 square feet Hardscape area: 5,436 square feet A-57 The east side of Hermosa Ave from 115 feet north of Coca St to 451 feet north of Coca St. The trail north of water retention basin from Hermosa Ave to 619 feet east of Hermosa Ave. Ground Cover area:9,406 square feet Hardscape area:6,794 square feet A-58 The west side of Haven Ave from 510 feet south of Victoria St to 1005 feet south of Victoria St. Ground Cover area:7,301 square feet Hardscape area:4,790 square feet A-59 The east side of Archibald Ave from 820 feet south of Lemon Ave to 448 feet south of Lemon Ave and continues from 275 feet south of Lemon Ave to 185 south of Lemon Ave. Ground Cover area:4,777 square feet Hardscape area:5,041 square feet Page 224 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 1 – City of Rancho Cucamonga 12 Fiscal Year 2023/24 ATTACHMENT 1 A-60 The south side of Lemon Ave from 290 feet east of Archibald Ave to London Ave. The west side of London Ave from Lemon Ave to Orange St. Ground Cover area:2,569 square feet Hardscape area:4,122 square feet A-61 The north side of Carrari St from London Ave to Archibald Ave. Ground Cover area:25,152 square feet Hardscape area: 1,698 square feet A-62 The east side of Archibald Ave from Carrari St to 505 feet north of Meadowood Dr. Ground Cover area:8,626 square feet Hardscape area:1,824 square feet A-63 The south side of Almond St from Carriage Rd to Almond St. Ground Cover area:3,342 square feet Hardscape area:3,600 square feet A-64 The east side of Beryl St from Cottonwood Way to Wilson Ave. The south side of Wilson Ave from Beryl St to 437 feet east of Beryl St. The north side of Wilson Ave from Cousins Pl to 474 feet east of Cousins Pl. Ground Cover area:11,973 square feet Hardscape area: 9,949 square feet A-65 The east side of Archibald Ave from La Gloria Dr to 328 feet north of La Gloria Dr. Ground Cover area:2,279 square feet Hardscape area:2,411 square feet A-66 The east side of Hermosa Ave from Waterford Ln to 500 feet north of Waterford Ln. Ground Cover area:4,695 square feet Hardscape area:5,947 square feet A-67 The south side of 19th St from 220 feet east of Sapphire St to Via Serena. Ground Cover area:3,208 square feet Hardscape area:4,158 square feet A-68 The west side of Haven Ave from Hillside Rd to 783 feet south of Hillside Rd. Ground Cover area:3,492 square feet A-69 The north side of Hillside Rd from 27 feet west of Mayberry Ave to 191 feet west of Mayberry Ave. Ground Cover area:1,002 square feet Hardscape area:1,605 square feet Page 225 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 1 – City of Rancho Cucamonga 13 Fiscal Year 2023/24 ATTACHMENT 1 A-70 The south side of 19th St from 365 feet west of Amethyst Ave to Amethyst Ave. The west side of Amethyst Ave from 19th to Hedges Dr. Ground Cover area:6,435 square feet Hardscape area:7,015 square feet A-71 The west side of Archibald Ave from Hillside Rd to Wilson Ave. The north side of Wilson Ave, south of the trail fence area from Archibald Ave to 467 feet west of Archibald Ave. Ground Cover area:9,265 square feet Hardscape area:2,609 square feet A-72 The south side of Banyan St from 420 feet west of Archibald Ave to Archibald Ave. The west side of Archibald Ave from Banyan St to 389 feet south of Banyan St. Ground Cover area:10,270 square feet Hardscape area: 6,673 square feet A-73 The west side of Beryl St from 300 feet north of San Simeon Dr to 130 feet north of San Simeon Dr. Ground Cover area:1,200 square feet Hardscape area: 600 square feet A-74 The south side of Highland Ave from Beryl St to Hellman Ave. Ground Cover area:11,603 square feet A-75 The south side of Highland Ave from Amethyst Ave to 612 feet east of Archibald Ave. Ground Cover area:106,409 square feet Hardscape area: 60,608 square feet A-76 The west side of Archibald Ave from 635 feet north of Hillside Rd to Hillside Rd. The north side of Hillside Rd from Archibald Ave to 770 feet west of Archibald Ave. Ground Cover area:8,859 square feet Hardscape area:1,389 square feet A-77 The east side of Carnelian St from Brilliant Ln to Wilson Ave including the irrigation cut- outs along trail. The south side of Wilson Ave from Carnelian St to 745 feet east of Arabian Dr. The irrigation cut-outs on the north side of Wilson Ave from Carnelian St to 775 feet east of Arabian Dr. Ground Cover area: 5,101 square feet Hardscape area:11,322 square feet B-1 The median on Blue Gum Dr from Etiwanda Ave to Blue Gum Dr. Ground Cover area:5,100 square feet Page 226 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 1 – City of Rancho Cucamonga 14 Fiscal Year 2023/24 ATTACHMENT 1 B-2 The north side of Highland Ave from the Deer Creek Channel to San Benito Ave. The north side of 19th St from San Benito Ave to Palm Dr. The west and east side of Alameda Ave from 19th St to Ring Ave. The east side of Palm Dr from 19th St to Ring Ave. Ground Cover area:47,397 square feet Hardscape area:26,285 square feet B-3 The paseo from Sutter Ct to Deer Creek Channel. Ground Cover area:294 square feet Hardscape area:400 square feet B-4 The north side of Banyan St from Deer Creek Channel to 355 feet west of Fredericksburg Ave. Ground Cover area:9,200 square feet Hardscape area:3,834 square feet B-5 The north side of Lemon Ave from Semillion Pl to 188 feet west of Terracina Ave. Ground Cover area:14,472 square feet Hardscape area: 3,894 square feet B-6 The north side of Lemon Ave from Barsac Pl to Semillion Pl. Ground Cover area:15,784 square feet Hardscape area: 3,780 square feet B-7 The south side of Banyan St from Cabernet Pl to 414 feet east of Cabernet Pl. Ground Cover area:18,814 square feet B-8 The south side of Banyan St from Callaway Pl to Muscat Pl. Ground Cover area:10,505 square feet B-9 The east side of Haven Ave from Banyan St to 240 feet north of Banyan St. The north side of Banyan St from Haven Ave to Merlot Ct. Ground Cover area:24,975 square feet Hardscape area: 1,356 square feet B-10 The east side of Haven Ave from 400 feet south of Banyan St to Banyan St. The south side of Banyan St from Haven Ave to Callaway Pl. Ground Cover area:14,548 square feet Hardscape area: 6,348 square feet B-11 The south side of Banyan St from Muscat Pl to Cabernet Pl. Ground Cover area:33,282 square feet Page 227 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 1 – City of Rancho Cucamonga 15 Fiscal Year 2023/24 ATTACHMENT 1 B-12 The north side of Lemon Ave from Barsac Pl to 135 feet east of Valinda Ave. Ground Cover area:13,464 square feet Hardscape area: 4,098 square feet B-13 The south side of 19th St from Inyo Pl to 585 feet east of San Benito Ave. The parkways on the east and west side of San Benito Ave from 19th St to San Mateo Pl. The east side of Inyo Pl from 19th St to paseo south of 19th St and the paseo running east from Inyo Pl to Sonora Ave. Ground Cover area:20,950 square feet Hardscape area:14,192 square feet B-14 The paseo from San Benito Ave and Sonora Ave to the Deer Creek Channel. Ground Cover area:2,000 square feet Hardscape area: 540 square feet B-15 The paseo from Stanislaus Pl and La Vine St to the Deer Creek Channel. Ground Cover area:1,040 square feet Hardscape area: 428 square feet B-16 The paseo from Inyo Pl to Mendocino Pl. Ground Cover area:225 square feet Hardscape area:184 square feet B-17 The paseo from Yuba Ct to Deer Creek Channel. Ground Cover area:918 square feet Hardscape area:420 square feet B-18 The south side of Wilson Ave from 377 feet west of Canistel Ave to 1032 feet east of Canistel Ave. Ground Cover area:6,762 square feet Hardscape area:8,454 square feet B-19 The east side of Haven Ave from the Southern Pacific Railroad to 341 feet south of Victoria St. Ground Cover area:6,415 square feet Hardscape area:8,865 square feet B-20 The east side of Haven Ave from 341 feet south of Victoria St to Victoria St; the south side of Victoria St from Haven Ave to 237 feet east of Mango St. Ground Cover area:16,900 square feet Hardscape area: 8,767 square feet Page 228 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 1 – City of Rancho Cucamonga 16 Fiscal Year 2023/24 ATTACHMENT 1 B-21 The south side of 19th St from Valinda Ave to Inyo Pl. Ground Cover area:3,900 square feet Hardscape area:3,700 square feet B-22 The south side of Lemon Ave south of the sidewalk from 188 feet west of Terracina Ave to 284 feet north of Marbella Dr. The parkway on the south side of Lemon Ave from 188 feet west of Terracina Ave to 517 feet north of Marbella Dr. The turf in the parkway at the end of the cul-de-sac on Sonterra Ct. The parkway on the north side of Lemon Ave from 188 feet west of Terracina Ave to 526 feet south of Terracina Ave. The north side of Lemon Ave north of the sidewalk from 188 feet west of Terracina Ave to 562 feet south of Terracina Ave. The turf in the parkway at the end of the cul-de-sac at Serena Pl. Ground Cover area:17,688 square feet Turf area: 6,390 square feet Hardscape area: 4,928 square feet B-23 The parkway on the east side of Lemon Ave from 129 feet south of Marbella Dr to 526 feet south of Terracina Ave. The slope on the east side of Lemon Ave east of the sidewalk from 129 feet south of Marbella Dr to 562 feet south of Terracina Ave. The west side of Lemon Ave west of the sidewalk from 284 feet north of Marbella Dr to 129 feet south of Marbella Dr. The parkway on the west side of Lemon Ave from 517 feet north of Marbella Dr to 129 feet south of Marbella Dr. Ground Cover area:22,531 square feet Hardscape area: 4,468 square feet B-24 The south side of Highland Ave from 327 feet west of Deer Creek Channel to Deer Creek Channel. The paseo from Los Osos Way to Deer Creek Channel. Ground Cover area:4,946 square feet Hardscape area:2,099 square feet B-25 The south side of Banyan St from 152 feet west of Cantabria Ave to 930 feet east of Cantabria Ave. Ground Cover area:16,693 square feet B-26 The north side of Wilson Ave from 590 feet west of High Meadow Pl to 187 feet east of High Meadow Pl. Ground Cover area:4,628 square feet Hardscape area: 390 square feet B-27 The east side of Haven Ave from 467 feet north of 19th St to 650 feet north of 19th St. Ground Cover area:3,483 square feet Hardscape area:6,235 square feet Page 229 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 1 – City of Rancho Cucamonga 17 Fiscal Year 2023/24 ATTACHMENT 1 C-1 The north side of 26th St from Andover Pl to Hermosa Ave. The east side of Hermosa Ave from 26th St to 331 feet north of Concord Dr. Ground Cover area:22,227 square feet Hardscape area: 5,532 square feet C-2 The entry monument on the northeast and northwest corners of 4th St and Archibald Ave. Ground Cover area:6,337 square feet Hardscape area:3,998 square feet C-3 The south side of Base Line Rd from Ramona Ave to 128 feet east of Cambridge Ave. Ground Cover area:17,262 square feet Hardscape area: 4,865 square feet C-4 The south side of Base Line Rd from 440 feet west of Ramona Ave to Ramona Ave. Ground Cover area:6,198 square feet Hardscape area:2,200 square feet C-5 The south side of Base Line Rd from 340 feet west of Center Ave to 103 feet east of Center Ave. Ground Cover area:8,850 square feet Hardscape area:2,215 square feet C-6 The south side of Base Line Rd from Ivy Ln to 105 feet west of Marine Ave. Ground Cover area:8,080 square feet Hardscape area:2,475 square feet C-7 The parkway on the north side of Church St from 142 feet east of Teak Way to 230 feet west of Teak Way. Ground Cover area:1,813 square feet Hardscape area:1,650 square feet C-8 The west side of Hermosa Ave from 524 feet north of Palo Alto St to 142 feet south of Palo Alto St. Ground Cover area:2,650 square feet Hardscape area:3,996 square feet C-9 The parkway on the west side of Hermosa Ave from 163 feet north of Ironwood St to 145 feet south of Ironwood St. Ground Cover area:1,500 square feet Hardscape area:1,848 square feet Page 230 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 1 – City of Rancho Cucamonga 18 Fiscal Year 2023/24 ATTACHMENT 1 C-10 The entry monument parkway on the south side of Base Line Rd from the western city limit to Alta Cuesta Dr. Ground Cover area:9,756 square feet Hardscape area:4,380 square feet C-11 The parkway on the east side of Beryl St from Alder St to 135 feet north of Culpepper St. Ground Cover area:3,400 square feet Hardscape area:3,600 square feet C-12 The parkway on the east side of Hellman Ave from Tryon St to 665 feet north of Tryon St. Ground Cover area:8,280 square feet Hardscape area:3,325 square feet C-13 The parkway on the west side of Hellman Ave from 500 feet north of Church St to Church St. Ground Cover area:2,416 square feet Hardscape area:3,000 square feet C-14 The east side of Archibald Ave from 196 feet north of Palo Alto St to 530 feet north of Palo Alto St. Ground Cover area:4,262 square feet Hardscape area:1,374 square feet C-15 The north side of San Bernardino Rd from Summerlin Pl to 225 feet west of Summerlin Pl. Ground Cover area:1,660 square feet Hardscape area: 710 square feet C-16 The south side of Base Line Rd from 286 feet west of Hermosa Ave to Hermosa Ave. The raised planter on the southwest corner of Base Line Rd and Hermosa Ave. Ground Cover area:4,190 square feet Hardscape area:2,320 square feet C-17 The east side of Hellman Ave from 775 feet south of 6th St to 6th St. The south side of 6th St from Hellman Ave to Golden Oak Rd. The west side of Golden Oak Rd from 6th St to Foxbrook Dr. Ground Cover area:9,058 square feet Hardscape area:6,387 square feet Page 231 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 1 – City of Rancho Cucamonga 19 Fiscal Year 2023/24 ATTACHMENT 1 D-1 The east side of Rochester Ave from Church St to Base Line Rd. Ground Cover area:27,920 square feet Hardscape area:17,301 square feet D-2 The east side of Rochester Ave from 146 feet south of Chervil St to Church St. Ground Cover area:21,858 square feet Hardscape area:13,263 square feet D-3 The south side of Base Line Rd from Rochester Ave to 600 feet east of Rochester Ave. Ground Cover area:2,180 square feet Hardscape area:4,121 square feet D-4 The north and south sides of Church St from Rochester Ave to 150 feet east of Hyssop Dr. Ground Cover area:6,340 square feet Hardscape area:8,887 square feet D-5 The landscape along the Edison corridor from Arrow Rt. To Foothill Blvd. Ground Cover area:23,392 square feet H-9 The Haven Ave median from the 210 freeway to Alta Loma Dr. Ground Cover area:2,207 square feet H-10 The Haven Ave median from entrance of Haven Village to Amber Ln. Ground Cover area:6,968 square feet Converted 5,131 square feet of turf to ground cover effective April 1, 2013. Area listed is the 50% maintained by LMD 1. An equal amount is maintained by General Fund as of March 25, 2013 H-11 The Haven Ave median from Amber Ln to Olive Way. Ground Cover area:5,026 square feet Converted 3,475 square feet of turf to ground cover effective April 1, 2013. Area listed is the 50% maintained by LMD 1. An equal amount is maintained by General Fund as of March 25, 2013 H-12 The Haven Ave median from Olive Way to 712 feet north of Wilson Ave. Ground Cover area:6,734 square feet Converted 3,933 square feet of turf to ground cover effective April 1, 2013. Area listed is the 50% maintained by LMD 1. An equal amount is maintained by General Fund as of March 25, 2013 H-13 The Haven Ave median from 19th St to the 210 freeway. Ground Cover area:12,514 square feet Page 232 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 1 – City of Rancho Cucamonga 20 Fiscal Year 2023/24 ATTACHMENT 1 FH-18 The Foothill Blvd median from East Ave to 453 feet east of Cornwall Ct. Ground Cover area:5,450 square feet I-1-5 The Andover Pl playground on the southwest corner of Andover Pl and Bedford Dr. Ground Cover area:1,506 square feet Turf area:1,070 square feet Hardscape area: 640 square feet Parks, ground cover, shrubs and turf areas that make up parkways, median islands and paseos are maintained under contract by a private landscape maintenance company. Map of Improvements The following page shows the map of landscaping improvements, including irrigation sites and community trails, to be maintained using District funds. Page 233 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 1 – City of Rancho Cucamonga 21 Fiscal Year 2023/24 ATTACHMENT 1 Page 234 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 1 – City of Rancho Cucamonga 22 Fiscal Year 2023/24 ATTACHMENT 1 ESTIMATE OF COSTS The estimated costs of administration, maintenance, operations, and servicing the improvements as described in the Plans and Specifications are summarized below. Each year, as part of the District levy calculation process, the costs and expenses are reviewed and the annual costs are projected for the following fiscal year. District Budget Pe rsonne l Serv ice s: Regular Salaries 20,030$ Part-time Salaries 11,940 Fringe Benefits 13,570 Subtotal - Pe rsonne l 45,540 Ope rations and M ainte nance : Operations and Maintenance: O & M/General 73,750 O & M/Facilities 2,530 Emergency Equipm ent and Vehicle Rental 6,300 Equipment Operations and Maintenanc e 3,000 Subtotal - Operations and Maintenanc e 85,580 Contract Servic es : Contract Servic es /General 679,120 Contract Servic es /Fac ilities 8,150 Contract Vehic le Maintenance/Repair 2,000 Tree Maintenanc e 132,670 Subtotal - Contrac t Services 821,940 Utilities: Telephone Utilities 2,160 W ater Utilities 380,530 Electric Utilities 43,170 Subtotal - Utilities 425,860 As sessment Adm inis tration 43,290 Admin./General Overhead 74,140 Other Expenses 660 Subtotal - Ope rations and Mainte nance 1,451,470 Capital Expe nditure s: Captial Outlay - Equipm ent 32,000 Captial Outlay - Im provements Other Than Building 174,520 Captial Project 50,000 Subtotal - Capital Expe nditure s 256,520 T ransfe r Out: Transfer Out - LMD #1 Capital Reserve Fund 90,000 T otal Expe nditure s Budge t 1,843,530$ Page 235 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 1 – City of Rancho Cucamonga 23 Fiscal Year 2023/24 ATTACHMENT 1 Fiscal Year 2023/24 Budget Re v e nue s T axe s: Es tim ated As s ess m ents, Net of Estimated Delinquencies 1,256,110$ Antic ipated Prior Year Delinquencies Collec tion 12,220 Subtotal - T axe s 1,268,330 Othe r Re ve nue s: Interes t Earnings 37,610 Other Rental/Leas e Inc ome 31,560 Park Maintenance Fees 2,050 Sports Field Us er Group Rentals 110 Sports Lighting Fees 20,000 Other Revenue 100 Subtotal - Othe r Re ve nue s:91,430 T ransfer In: Trans fer In - General Fund 66,960 Trans fer In - LMD #1 Operating Fund 90,000 Trans fer In - CFD Empire Lakes 92,620 Trans fer In - 8999 - Subtotal - T ransfer In:249,580 T otal Re ve nue s Budge t 1,609,340 Contribution to/(Use of) Fund Balance (234,190)$ Total Gross Es timated As ses sments 1,256,106.10$ Total Dis tric t EBU Count 13,621.67 Actual Asses sment per EBU - Fiscal Year 2023/24 92.21$ Maxim um Allowable Assem ent per EBU - Fisc al Year 2023/24 92.21$ The maximum allowable assessment per Equivalent Benefit Unit (EBU) listed in the District budget above, is the amount which was approved in 1996/97 and subsequent District annexations. Each year, prior to the assessments being placed on the tax roll, the City will review the budget and determine the amount needed to maintain the improvements for the upcoming fiscal year. The actual assessment per EBU will be based on the estimated costs of maintenance, available fund balance and maximum allowable assessment with the goal of maintaining the improvements in a satisfactory and healthy condition. The actual assessment amount may be lower than the maximum allowable assessment; however, it may not exceed the maximum unless the increase is approved by the property owners in accordance with Proposition 218. It is the intent of the City to maintain an Operating Reserve which shall not exceed the estimated costs of maintenance and servicing of the improvements prior to December 10 of the fiscal year, or when the City expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. Beginning with Fiscal Year 2016/17 the City will maintain a Capital Reserve Fund to be used for deferred maintenance and pending capital projects. The reserve balance information for the District is as follows: Page 236 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 1 – City of Rancho Cucamonga 24 Fiscal Year 2023/24 ATTACHMENT 1 Operating Capital Total Reserve Reserve Reserve Es tim ated Res erve Fund Balanc e, June 30, 2023 $1,026,534 $440,228 1,466,762$ Contribution to/(Us e of) Res erve - Fisc al Year 2023/24 (60,660)(173,530)(234,190) Es tim ated Res erve Fund Balanc e, June 30, 2024 $965,874 $266,698 1,232,572$ Definitions of Budget Items The following definitions describe the costs and expenses included in the District Budget: Personnel Services: This item includes the costs attributed to the salaries of all full-time and part-time employees dedicated to maintenance of the District improvements. Additionally, this includes benefits available to City employees. Operations and Maintenance: This item includes the costs of City staff to perform maintenance duties within the boundaries of the District. Contract Services: This item includes the contract costs of a landscape maintenance company responsible for the ongoing maintenance of the District improvements. Utilities: This item includes the costs to furnish electricity, water, and telephone services, as required, for the operation and maintenance of the sprinklers and irrigation controllers in the District. Assessment Administration: This item includes the cost of all particular departments and staff of the City, as well as consultants, for providing the administration, coordination and management of District services, operations, and incidental expenses related to the District. This item also includes creation of an annual Engineer's Report, resolutions and placing the assessment amounts onto the County tax roll each year, along with responding to any public inquiries and future Proposition 218 balloting proceedings. General Overhead: This item includes the costs of all central services departments of the City for providing the coordination of District services, inspections, annual bid management, responding to public concerns, public education, accounting, auditing and procedural matters associated with the District. This item also includes an allocation for general City staff time for administrative functions and systems that provide for a functional and operational District within the City's administrative structure. Capital Outlay: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include new monuments, irrigation systems, and other large improvements. Page 237 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 1 – City of Rancho Cucamonga 25 Fiscal Year 2023/24 ATTACHMENT 1 Other Revenues: This includes other revenues that are not levied through the annual assessments that support the District operations. These other revenues may include: interest earnings, other rental/lease income (cell site tower leases), Park Maintenance Fees, Sports Field User Group Rentals, and parking permits (Metrolink Station paid parking). METHOD OF ASSESSMENT Overview Pursuant to the 1972 Act and Article XIII D, all parcels that have a special benefit conferred upon them as a result of the maintenance and operation of improvements and services shall be identified, and the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entire costs of the maintenance and operation of improvements. The 1972 Act, permits the establishment of assessment districts for the purpose of providing certain public improvements which include the operation, maintenance and servicing of landscaping improvements. Section 22573 of the 1972 Act requires that maintenance assessments must be levied according to benefit rather than according to assessed value. This Section states: The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefit to be received by each such lot or parcel from the improvements. The determination of whether or not a lot or parcel will benefit from the improvements shall be made pursuant to the Improvement Act of 1911 (Division 7 commencing with Section 5000) [of the Streets and Highways Code, State of California]. Section 22547 of the 1972 Act also permits the designation of zones of benefit within any individual assessment district if "by reasons or variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvement." Article XIII D, Section 4(a) of the California Constitution limits the amount of any assessment to the proportional special benefit conferred on the property. Article XIII D also provides that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment. Exempted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements and rights-of-ways, public greenbelts and public parkways. The net amount to be assessed may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels. Proposition 218, approved by Page 238 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 1 – City of Rancho Cucamonga 26 Fiscal Year 2023/24 ATTACHMENT 1 the voters in November 1996, requires the City to separate general benefit from special benefit, where only special benefit is assessed. General Benefit Section 4 of Article XIII D of the California Constitution provides that once a local agency which proposes to impose assessments on property has identified those parcels that will have special benefits conferred upon them and upon which an assessment will be imposed, the local agency must next "separate the general benefits from the special benefits conferred," and only the special benefits can be included in the amount of the assessments imposed. In this District, the improvements being financed consists of the maintenance of local improvements located within the boundaries of the District and include paseos, street trees, landscaped areas, Parks - Bear Gulch Park, East and West Beryl Park, Old Town Park, Church Street Park, Golden Oaks Park, Hermosa Park, and the undeveloped Don Tiburcio Tapia Park and appurtenant facilities that are located throughout the General City and were installed to create a common landscape theme and neighborhood identity for parcels within the District. The improvements are situated within the public rights-of-way of the internal local street network within the General City which provides ingress and egress for parcels within the District to access the City’s system of arterial streets. City residents and traffic from parcels not within the District do not use the internal local street network or paseos except for the express purpose of accessing properties located within the District, and therefore do not benefit from the improvements. Only parcels which are within the District and proximate to the improvements and within the District are being assessed. Accordingly, there is a direct physical and visual nexus between each parcel being assessed and the improvements to be funded by the assessment that does not exist for parcels outside of the District boundary and that is particular and distinct from that shared by the public at large. Under these circumstances, all of the benefits conferred are direct and local in nature, and provide a benefit to only those parcels located within the boundaries of the District. Based upon this, it has been determined that there is no quantifiable general benefit to the surrounding community and the public in general from the maintenance of the improvements within the boundaries of the District, and therefore no portion of the project costs should be attributed to general benefit. Special Benefit The maintenance and servicing of the improvements within the District (which are described in the Description of Improvements and Services Section of this report) are for the benefit of the properties within the District and, as such, confer a special and direct benefit to parcels within the District by: •improving the livability, appearance, and desirability for properties within the boundaries of the District, and Page 239 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 1 – City of Rancho Cucamonga 27 Fiscal Year 2023/24 ATTACHMENT 1 •ensuring that improvements do not reach a state of deterioration or disrepair so as to be materially detrimental to properties within the District, and •providing beautification, shade and overall enhancement to properties within the District. The above mentioned items affect the assessed property in a way that is particular and distinct from their effect on other parcels and that real property in general and the public at large do not share. They contribute to a specific enhancement of the properties within the District. Since these improvements, including the community trails, were installed and are maintained specifically for the properties within the District, only properties within the District receive a special benefit and are assessed for said maintenance. Method of Assessment Spread Each of the parcels within the District is deemed to receive special benefit from the improvements. Each parcel that has a special benefit conferred upon it as a result of the maintenance and operation of improvements is identified and the proportionate special benefit derived by each identified parcel is determined in relationship to the entire costs of the maintenance and operation of the improvements. When the District was formed, Article XIII D and Proposition 218 had not yet been passed. Upon the passage of Article XIII D and the subsequent passage of the Proposition Omnibus Implementation Act, new rules were put into place. Due to the changes in legal requirements, as property annexed to the District after the passage of the Assessment Law, the description of the method of assessment became more refined; however, the assessment per parcel has remained the same since Fiscal Year 1996/97. Further, no parcel included in the District formation or annexations prior to when the language was refined are now being levied differently than they were at the time the District was formed or the parcels were annexed. To assess special benefit appropriately, it is necessary to relate the different type of parcel improvements to each other. The EBU method of apportionment uses the single-family home as the basic unit of assessment. A single-family home equals one EBU. Every other land-use is converted to EBUs based on an assessment formula that equates to the property's specific development status, type of development (land-use), and size of the property, as compared to a single-family home. The following table provides the weighting factors applied to various land-use types, as assigned by County use code, to determine each parcel's EBU assignment. Page 240 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 1 – City of Rancho Cucamonga 28 Fiscal Year 2023/24 ATTACHMENT 1 Land-Use Equivalent Dwelling Units Prope rty T ype (County Use Code )EBU Value Multiplie r Single Family Res idential 1.00 Parc el Multi-Family Residential 0.50 Unit Non-Residential 2.00 Acre The use of the latest County Assessor's Secured Roll shall be the basis for the Property Type determination and units/acreage assignments, unless better data is available to the City. In addition, if any parcel within the District is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, the Property Type and EBU assignment shall be based on the correct parcel number and/or new parcel number(s) County use code and subsequent property information. If a single parcel has changed to multiple parcels, the EBU assignment and assessment amount applied to each of the new parcels will be recalculated rather than spread the proportionate share of the original assessment. The following table summarizes the Fiscal Year 2023/24 maximum allowable assessment rates for the District: M aximum Allowable Assessme nt Rate pe r EBU Actual Asse ssment Rate pe r EBU T otal Units/Acre s T otal EBUs Single Family Residential $92.21 $92.21 8,413.00 8,413.00 Multi-Family Residential 92.21 92.21 10,382.00 5,191.00 Non-Res idential 92.21 92.21 8.83 17.67 The total amount of maintenance and incidental costs for maintaining the landscaping and community trail improvements is assessed to the individual parcels of real property within the District in proportion to the special benefit received by such parcels of real property. The proposed individual assessments are shown on the assessment roll in this report. ASSESSMENT DIAGRAM An Assessment Diagram for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the San Bernardino County Assessor Office, at the time this report was prepared, and are incorporated by reference herein and made part of this Engineer's Report. Page 241 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 1 – City of Rancho Cucamonga 29 Fiscal Year 2023/24 ATTACHMENT 1 Page 242 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 1 – City of Rancho Cucamonga 30 Fiscal Year 2023/24 ATTACHMENT 1 ASSESSMENT ROLL AND ANNEXATIONS Assessment Roll The assessment roll is a listing of the assessment for Fiscal Year 2023/24 apportioned to each lot or parcel, as shown on the last equalized roll of the Assessor of the County of San Bernardino. The following table summarizes the Fiscal Year 2023/24 actual assessments for the District: Prope rty T ype (County Use Code ) Actual Asse ssme nt Rate Per EBU T otal Units/ Acres T otal EBUs T otal Assessme nt Single-family Res idential $92.21 8,413.00 8,413.00 $775,762.73 Multi-family Res idential 92.21 10,382.00 5,191.00 478,714.02 Non-res idential 92.21 8.83 17.67 1,629.35 T otal 18,803.83 13,621.67 $1,256,106.10 A copy of the full assessment roll is available for review in the City Clerk's office. Annexations The following annexations are effective for Fiscal Year 2023/24: APN Annexation Date Proje ct T otal Units / Acre s T otal EBUs T ype 1090-251-29 02/22/22 PMT2021-03992 1.00 1.00 Single-Family Res 0209-361-09 08/03/22 PMT2021-05731 1.00 1.00 Single-Family Res 0202-061-32 11/02/22 SUBTT20353 6.00 6.00 Single-Family Res 0202-981-19 11/16/22 DRC2020-00157 1.00 1.00 Single-Family Res 0207-361-17 12/07/22 DRC2021-00464 1.00 1.00 Single-Family Res 0209-101-10 12/07/22 PMT2022-02202 1.00 1.00 Single-Family Res Page 243 of 715 ATTACHMENT 2 Annual Engineer’s Report Fiscal Year 2023/24 City of Rancho Cucamonga Landscape Maintenance District No. 2 (Victoria Neighborhood Parks) Page 244 of 715 CITY OF RANCHO CUCAMONGA Landscape Maintenance District No. 2 (Victoria Neighborhood Parks) 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909.477.2700 Fax: 909.477.2845 CITY COUNCIL L. Dennis Michael, Mayor Lynne B. Kennedy, Mayor Pro Tem Ryan A. Hutchison, Council Member Kristine D. Scott, Council Member Ashley N. Stickler, Council Member CITY STAFF John R. Gillison, City Manager Elisa Cox, Assistant City Manager Jason C. Welday, Director of Engineering Services/City Engineer William Wittkopf, Public Works Director Noah Daniels, Finance Director Page 245 of 715 TABLE OF CONTENTS ENGINEER’S LETTER 1 INTRODUCTION 3 Reason for Assessment 3 Process for Annual Assessment 3 PLANS AND SPECIFICATIONS 4 Description of the Boundaries of the District 4 Description of Improvements and Services 4 Map of Improvements 22 ESTIMATE OF COSTS 24 District Budget 24 Definitions of Budget Items 26 BENEFITS FROM IMPROVEMENTS AND QUANTIFICATION 27 Benefits from Improvements 27 Quantification of Benefit 29 Sidewalks and Community Trails 30 Street Landscaping 32 Neighborhood Parks 37 Collective General Benefit 39 METHOD OF ASSESSMENT 39 Overview 39 Apportioning of Special Benefit 40 Rate per Benefit Unit 47 Method of Assessment Spread 47 Applying the Method of Assessment Spread 47 Page 246 of 715 Proposed Maximum Assessment Rates 50 Cost of Living Inflator 50 ASSESSMENT DIAGRAM 51 ASSESSMENT ROLL AND ANNEXATIONS 53 Assessment Roll 53 Annexations 53 Page 247 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 1 Fiscal Year 2023/24 ATTACHMENT 2 ENGINEER’S LETTER WHEREAS, on June 7, 2023, the City Council of Rancho Cucamonga (the “City”), under the Landscape and Lighting Act of 1972 (the “1972 Act”) adopted its Resolution No. 2023-055, a Resolution Initiating Proceedings for the Levy of Annual Assessments Landscape Maintenance District No. 2 (Victoria Neighborhood Parks) (hereafter, referred to as the “District”); and WHEREAS, the Resolution Initiating Proceedings directed staff to prepare and file an Annual Engineer’s Report for Fiscal Year 2023/24 pursuant to the requirements of the 1972 Act. The Annual Engineer’s Report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the maintenance, operations and servicing of the improvements for the District for the referenced fiscal year, a diagram for the District showing the area and properties proposed to be assessed, and an assessment of the estimated costs of the maintenance, operations and servicing of the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received; and NOW THEREFORE, the following assessment is proposed to be authorized in order to pay the estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the boundaries of the District in proportion to the special benefit received. The following table summarizes the proposed assessment. Fisc al Year 2023/24 Budget Expe nditure s Personnel Servic es 1,029,570$ Operations and Maintenanc e 3,711,850 Capital Expenditures 1,708,000 T otal Expe nditure s Budge t 6,449,420 Re v e nue s Taxes : Estim ated Ass ess m ents , Net of Estim ated Delinquenc ies 4,038,580 Antic ipated Prior Year Delinquenc ies Collec tion 27,410 Subtotal - Taxes 4,065,990 Other Revenues 59,860 Trans fer In 619,270 T otal Re v e nue s Budge t 4,745,120 Contribution to/(Use of) Fund Balance (1,704,300)$ Total Dis tric t EBU Count 81,554.33 Ac tual Assess m ent per EBU 49.53$ Maxim um Allowable Ass ement per EBU 52.71$ Page 248 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 2 Fiscal Year 2023/24 ATTACHMENT 2 In making the assessments contained herein pursuant to the 1972 Act: 1. I have identified all parcels which will have a special benefit conferred upon them from the improvement described in the Special Benefit Section of this Annual Engineer’s Report (the “Specially Benefited Parcels”). For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is included in this Annual Engineer’s Report. 2. I have evaluated the costs and expenses of the improvements upon the Specially Benefited Parcels. In making such evaluation: a. The proportionate special benefit derived by each Specially Benefited Parcel from the improvements was determined in relationship to the entirety of the maintenance costs of the improvements; b. No assessment has been imposed on any Specially Benefited Parcel which exceeds the reasonable cost of the proportional special benefit conferred on such parcel from the improvements; and c. Any general benefits from the improvements have been separated from the special benefits and only special benefits have been assessed. I, the undersigned, respectfully submit the enclosed Annual Engineer’s Report and, to the best of my knowledge, information and belief, I certify that the Annual Engineer’s Report and Assessment Diagram included herein have been prepared and computed in accordance with the order of the City Council of the City of Rancho Cucamonga and the Assessment Law. Jason C. Welday Director of Engineering Services/City Engineer Page 249 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 3 Fiscal Year 2023/24 ATTACHMENT 2 INTRODUCTION Reason for Assessment Approval of the assessment covered by this Engineer’s Report will generate the revenue necessary to: Provide for the maintenance and servicing of the improvements described in this Engineer’s Report. Maintenance may include but is not limited to, all of the following: the upkeep, repair, removal or replacement of all or any part of any improvement or facility such as paseos, community trails, fencing and irrigation systems, and providing for the growth, vigor and care of the trees and landscape plant materials. Servicing means the furnishing of electricity, gas or other illuminating energy for the lighting of landscape or appurtenant facilities. This shall also include material, vehicle, equipment, capital improvements and administrative costs associated with the annual administration and operation of the District. Process for Annual Assessment The City cannot levy and collect annual assessments within the District without complying with the procedures specified in the 1972 Act. On an annual basis, an Engineer’s Report must be prepared which contains a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. The City Council must also adopt a resolution of intention which: •Declares the intention of the City Council to levy and collect assessments within the District for the fiscal year stated therein. •Generally describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements. •Refers to the District by its distinctive designation and indicate the general location of the District. •Refers to the Engineer’s Report, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. •Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment. •States whether the assessment is proposed to increase from the previous year. If the assessments are to be levied in the same or lesser amounts than the maximum assessment amount approved, the City Clerk shall give notice by causing the resolution of intention to be published. Any interested person may, prior to the conclusion of the public Page 250 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 4 Fiscal Year 2023/24 ATTACHMENT 2 hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. During the course or upon conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including the improvements, to the zones within the District, and the proposed diagram or the proposed assessment. The City Council, upon conclusion of the public hearing must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the assessment. If the assessment to be levied exceeds the maximum assessment amount previously approved, the City must comply with the procedures specified in Article XIII D and Proposition 218. The voters in the State of California in November 1996 added Article XIII D to the California Constitution imposing, among other requirements, the necessity for the City to conduct an assessment ballot procedure to enable the owners of each property on which assessments are proposed to be enacted or increased, the opportunity to express their support for, or opposition to the proposed assessment or increase in such assessment. PLANS AND SPECIFICATIONS The District provides for the administration, maintenance, operations, and servicing of various improvements located within the public right-of-way and dedicated easements within the boundaries of the District. Description of the Boundaries of the District The District is located in the City of Rancho Cucamonga, State of California. The boundaries of the District are generally described as that area located south of the 210 Freeway, west of Etiwanda Ave, southwest of the I-15 Freeway, and east of Haven Ave, also known as the Victoria Neighborhood Parks and Landscape Maintenance District, and are more particularly in the diagram of the District included herein. Reference is also made to the Assessment Diagram included in this Report. Description of Improvements and Services The improvements located in and serviced and maintained by the District generally include: the landscaping and associated landscape lighting and irrigation systems installed along the roadways, medians, and community trails; sidewalks; and six neighborhood parks that are of direct and special benefit to the parcels within the District. These improvements are located within the public right-of-ways and dedicated public easements which are within the boundaries of the District. The landscaping maintenance includes, but is not limited to, pruning, fertilizing, mowing, weeding, pest control, removal of trash/debris/graffiti, and irrigation of the trees, shrubs, vines, ground cover, and turf. Maintenance of associated improvements, including the Page 251 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 5 Fiscal Year 2023/24 ATTACHMENT 2 parks and irrigation systems, includes but is not limited to, the upkeep, repair, removal or replacement of all or any part of the improvement or facility; grading and replacement of trail surfacing; trail fence repair and replacement; and irrigation systems control, adjustment, repair and replacement. Servicing means the furnishing of water for the irrigation of landscaping, the furnishing of electricity, gas or other illuminating energy for the lighting of landscaping or appurtenant facilities. This shall also include materials, vehicles, equipment, capital improvements and administrative costs associated with the annual administration and operation of the District. Services include personnel, materials, contracting services, utilities, and all necessary costs associated with the maintenance, replacement and repair required to keep the improvements in a healthy, vigorous and satisfactory condition. In addition, it is the City’s intention to continue to use cost effective materials, including the future ability to replace landscaping with drought resistant or low water use plants, in order to lower expenses of the District. The breakdown of maintained areas is as follows: Parks: Ellena Park, Kenyon Park, Victoria Arbors Park, Victoria Groves Park, Vintage Park, and Windrows Park Site #Descriptive Location 2-1 The west side of Arbor Ln from the traffic circle to Church St. The Arbor Ln median from Church St to the traffic circle. The east side of Arbor Ln from Long Meadow Dr to Church St. The paseo from the west side of Arbor Ln to Day Creek Blvd. The paseo from the west side of Arbor Ln to Saintsbury Pl. The north side of Winery Dr from Arbor Ln to 214 feet west of Arbor Ln. The south side of Long Meadow Dr from Freestone Ct to Duck Creek Pl. Ground Cover area:93,639 square feet Hardscape area:59,041 square feet 2-2 The northwest corner of Day Creek Blvd and Church St. The north side of Church St from Day Creek Blvd to 1,152 feet west of Hess Pl. The paseo from the north side of Church St to Dry Creek Dr. The paseo from the north side of Church St to Pineridge Pl. The west side of Hess Pl from the north side of Church St to Dry Creek Dr. The south side of Church St from 145 feet east of Hyssop Dr to 896 feet east of Hyssop Dr. Ground Cover area:24,018 square feet Hardscape area:26,617 square feet 2-3 The west side of Day Creek Blvd from 250 feet north of Appellation Dr to Church St. The east side of Day Creek Blvd from Church St to Madrigal Pl. The Day Creek Blvd median from Church St to Base Line Rd. The south side of Madrigal Pl from Day Creek Blvd to Round Hill Pl. Ground Cover area:35,420 square feet Hardscape area:42,671 square feet Page 252 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 6 Fiscal Year 2023/24 ATTACHMENT 2 2-4 Victoria Park Ln from Base Line Rd to the east entrance of Victoria Arbor Park. The southwest corner of Victoria Park Ln and Base Line Rd. The southeast corner of Victoria Park Ln to 445 feet east of Victoria Park Ln. Ground Cover area:36,482 square feet Turf area: 3,874 square feet Hardscape area:32,927 square feet 2-5 The east and west side of Victoria Park Ln and the medians from Mosaic Dr to Church St. Ground Cover area:56,358 square feet Hardscape area:20,390 square feet 2-6 The north side of Church St from Arbor Ln to Day Creek Blvd. The northwest corner of Church St and Arbor Ln. The paseo from the north side of Church St to Wilson Creek Dr. Ground Cover area:21,616 square feet Hardscape area:15,159 square feet 2-7 The north side of Church St from Victoria Park Ln to Arbor Ln. The northwest corner of Victoria Park Ln and Church St. The paseo from the north side of Church St to Elk Cove Ct. The paseo from the north side of Church St to Freestone Ct. The northeast corner of Arbor Ln and Church St. Ground Cover area:16,609 square feet Hardscape area:13,730 square feet 2-8 The paseo from the west side of Etiwanda Ave to Silver Rose Ct. The north side of Church St from Etiwanda Ave to Victoria Park Ln. The east side of Iron Horse Pl from Church St to Wild Horse Pl. The paseo from the north side of Church St to Cloudy Bay Ct. The medians from Iron Horse Pl to Etiwanda Ave. Ground Cover area:35,122 square feet Hardscape area:28,473 square feet 2-9 The landscaped slope behind existing landscape of site 2-5 on the west side of Victoria Park Ln from 475 feet north of Long Meadow Dr to Long Meadow Dr. The landscape slope and curb adjacent parkway from Victoria Park Ln to 685 feet west of Victoria Park Ln. Ground Cover area:26,213 square feet Hardscape area: 5,617 square feet VW-1 Base Line Rd median from Victoria Park Ln to 830 feet west of Victoria Park Ln. Ground Cover area:4,514 square feet Hardscape area:3,474 square feet Page 253 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 7 Fiscal Year 2023/24 ATTACHMENT 2 VW-2 The north side of Base Line Rd 300 feet east and 200 feet west of Swanson Pl. The east and west sides of Swanson Pl from Base Line Rd to Province St. The paseo from the intersection of Swanson Pl and Province St to Atwood St with outlet to Dunmore Pl. The paseo from Atwood St to the Southern Pacific Railroad. The north side of Saratoga St from Powell Pl to Dunmore Pl. The paseo from Saratoga St to Etiwanda Ave. The south side of Atwood St from Victoria Park Ln to Travis Pl. The north side of Atwood St from Walcott Pl to Victoria Park Ln. Ground Cover area:18,753 square feet Turf area:73,931 square feet Hardscape area:22,615 square feet VW-3 The Victoria Park Ln median and the west and east side parkways from Base Line Rd to the entrance to Victoria Village. Ground Cover area:27,090 square feet Hardscape area: 3,214 square feet VW-4 The Victoria Park Ln median and the west and east side parkways from Victoria Village entrance to Atwood St. Ground Cover area:40,937 square feet Hardscape area: 6,428 square feet VW-5 The Victoria Park Ln median and the west side and east side parkways from Atwood St to the Southern Pacific Railroad. Ground Cover area:49,513 square feet Hardscape area: 5,467 square feet VW-6 The paseo running north from 12732 Farrington St to the Southern Pacific Railroad. Ground Cover area:285 square feet Hardscape area:679 square feet VW-7 The paseo running north from 12840 Farrington St to the Southern Pacific Railroad. Ground Cover area:266 square feet Hardscape area:552 square feet VW-8 The Victoria Park Ln median and the west side parkway from the Southern Pacific Railroad to South Victoria Windrows Loop. The Victoria Park Ln east side parkway from the Southern Pacific Railroad to Zinnia Ct. Ground Cover area:40,548 square feet Hardscape area: 6,150 square feet Page 254 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 8 Fiscal Year 2023/24 ATTACHMENT 2 VW-9 The Victoria Park Ln east side parkway from Barberry St to North Victoria Windrows Loop at Windrows Park. Ground Cover area: Turf area: 40,004 square feet 11,779 square feet Hardscape area: 3,720 square feet VW-10 The west side of Victoria Park Ln from South Victoria Windrows Loop to Dahlia Ct. The Victoria Park Ln median from Zinnia Ct to Dahlia Ct. The east side of Victoria Park Ln from North Victoria Windrows Loop at Windrows Park to Dahlia Ct. Ground Cover area:50,620 square feet Turf area:11,878 square feet Hardscape area:11,400 square feet VW-11 The east side parkway on South Victoria Windrows Loop from Silktassel Dr to Victoria Park Ln. The parkway on the south side of Victoria Park Ln from the intersection of South Victoria Windrows Loop and North Victoria Windrows Loop to Dahlia Ct. The Victoria Park Ln median from the intersection of North and South Victoria Windrows Loop to Dahlia Ct. The parkway on the north side of Victoria Windrows Loop from the intersection of North and South Victoria Windrows Loop to Dahlia Ct. Ground Cover area:27,053 square feet Turf area:20,216 square feet Hardscape area: 6,988 square feet VW-12 The Victoria Park Ln median from the intersection of North and South Victoria Windrows Loop to 390 feet east of Day Creek Blvd. The parkway on the north side of Victoria Park Ln from the intersection of North and South Victoria Windrows Loop to 390 feet east of Day Creek Blvd. The parkway on the west side of North Victoria Windrows Loop from Silverberry St to Victoria Park Ln. The parkway on the south side of Silverberry St from 390 feet east of Day Creek Blvd to North Victoria Windrows Loop. Ground Cover area:166,249 square feet Turf area: 21,603 square feet Hardscape area: 12,868 square feet VW-13 The parkway on the south side of Victoria Park Ln from 390 feet east of Day Creek Blvd to South Victoria Windrows Loop. The west side of South Victoria Windrows Loop from Victoria Park Ln to Snapdragon St. Ground Cover area:20,068 square feet Turf area:16,476 square feet Hardscape area: 7,200 square feet Page 255 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 9 Fiscal Year 2023/24 ATTACHMENT 2 VW-14 The parkway on the west side of South Victoria Windrows Loop from Snapdragon St to Victoria Park Ln. The parkway on the north and south side of Sugar Gum St from South Victoria Windrows Loop to 390 feet east of Day Creek Blvd. The parkways on the east and west sides of Basswood Pl from Sugar Gum St to Blazing Star Ct. The parkway on the north side of South Victoria Windrows Loop from Victoria Park Ln to Silktassel Dr. Ground Cover area:21,466 square feet Turf area:10,335 square feet Hardscape area:27,560 square feet VW-15 The parkway on the north side of Bougainvillea Way from Peach Pl to North Victoria Windrows Loop. The parkway on the east side of North Victoria Windrows Loop from Bougainvillea Way to Citrus Pl. The parkway on the north side of North Victoria Windrows Loop from Locus Ave and following that curb line to Silverberry St. The parkway on the north side of Silverberry St from North Victoria Windrows Loop 390 feet east of Day Creek Blvd. The paseo from North Victoria Windrows Loop at Silverberry St to Nasturtium Dr. The paseo from North Victoria Windrows Loop at Locus Ave to Pistache St and continuing to Bougainvillea Way. Ground Cover area:45,929 square feet Turf area:12,207 square feet Hardscape area:23,630 square feet VW-16 The south side of Highland Ave from 455 feet east of Day Creek Blvd to 534 feet east of Locus Ave. The east and west side of Locus Ave from Highland Ave to North Victoria Windrows Loop. The parkway on the south side of North Victoria Windrows Loop from Citrus Pl east to Bougainvillea Way. The parkway on the north side of North Victoria Windrows Loop from Twinspur Pl to Locus Ave. Ground Cover area:26,577 square feet Turf area:23,922 square feet Hardscape area:19,203 square feet VW-17 This site was modified and added to VW-16 on January 5, 1999. VW-18 The south side of Highland Ave from 12583 Highland Ave to Rockrose Ave. Ground Cover area:2,800 square feet Turf area:8,515 square feet Hardscape area:3,325 square feet Page 256 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 10 Fiscal Year 2023/24 ATTACHMENT 2 VW-19 The north side of North Victoria Windrows Loop from Rosemary Ct to Rockrose Ave. The east side of Rockrose Ave from North Victoria Windrows Loop to Highland Ave. The south side of Highland Ave from Rockrose Ave to Etiwanda Ave. The horse trail from Highland Ave and Etiwanda Ave to the Fire Station. Ground Cover area:21,027 square feet Turf area:32,266 square feet Hardscape area:11,298 square feet VW-20 The parkway on the south side of North Victoria Windrows Loop from Victoria Park Ln to Plum Way. The parkway on the west side of North Victoria Windrows Loop from Plum Way to Rosemary Ct. The paseo from Tipu Pl east to the open field. Note: The area in front of Windrows Park is watered by the VW-20 water meter, but it is maintained by City crews. Ground Cover area: 2,110 square feet Turf area:16,411 square feet Hardscape area: 9,132 square feet VW-21 The east side of North Victoria Windrows Loop from Rosemary Ct to the trail south of Kalmia St. The trail and paseo from North Victoria Windrows Loop south of Kalmia St to Etiwanda Ave and north to the Fire Station. The south side of Basil St from North Victoria Windrows Loop to Santolina Pl. Ground Cover area:49,187 square feet Turf area:36,461 square feet Hardscape area:19,600 square feet Mulchscape:21,071 square feet VW-22 The paseo from North Victoria Windrows Loop at Rockrose Ave to the northeast corner of Windrows Park and from that corner to Plum Way. Ground Cover area:13,689 square feet Turf area:19,953 square feet Hardscape area: 9,489 square feet VW-23 The west side of Rockrose Ave from Highland Ave to North Victoria Windrows Loop. The parkway on the north side of North Victoria Windrows Loop from Rockrose Ave to Twinspur Pl. The parkway on the south side of North Victoria Windrows Loop from Bougainvillea Way to Rosemary Ct. Ground Cover area:18,299 square feet Turf area: 3,452 square feet Hardscape area:10,352 square feet Page 257 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 11 Fiscal Year 2023/24 ATTACHMENT 2 VW-24 The Metropolitan Water District easement from Jasmine Ct and Ironbark Dr to Sweetgum Dr. Ground Cover area: 475 square feet Hardscape area:4,730 square feet VW-25 The north side of Base Line Rd from 384 feet west of Wanona Pl to Etiwanda Ave. The west side of Etiwanda Ave from Base Line Rd to Craig Dr. The Base Line Rd median from Swanson Pl to Etiwanda Ave. Ground Cover area:20,934 square feet Turf area: 3,079 square feet Hardscape area:12,799 square feet VW-26 The paseo from Grape Pl to 630 feet west of Grape Pl. Ground Cover area: 7,021 square feet Hardscape area: 8,548 square feet VW-27 The south side of Base Line Rd from 251 feet west of Swanson Pl to Etiwanda Ave. The Base Line Rd median from Victoria Park Ln to Swanson Pl. Ground Cover area:18,816 square feet Hardscape area:17,233 square feet VG-1 The turf and ground cover on the south side of Highland Ave from the Deer Creek Channel to Fairmont Way. The turf and ground cover from Highland Ave on the west side of Fairmont Way to Victoria Park Ln. The ground cover on the north side of Victoria Park Ln south of the horse trail from 475 feet east of Milliken Ave to Fairmont Way. The turf on the north side of Victoria Park Ln from 275 feet east of Milliken Ave to Fairmont Way. The turf in the parkway on the east side of Fairmont Way from Victoria Park Ln to Highland Ave. Ground Cover area:21,573 square feet Turf area:47,604 square feet Hardscape area:17,300 square feet Page 258 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 12 Fiscal Year 2023/24 ATTACHMENT 2 VG-2 The turf on the east side of York Pl from Delaware St to Fairmont Way. The ground cover on the south side of Fairmont Way from York Pl and continuing on that curb line to Victoria Park Ln. The turf and ground cover on the south side of Victoria Park Ln west of Milliken Ave from Fairmont Way to Milliken Ave. The parkway on the west side of Milliken Ave from Victoria Park Ln to Fairmont Way. The Milliken Ave median from Fairmont Way to Victoria Park Ln. The turf on the north side of Victoria Park Ln from 273 feet west of Milliken Ave to Milliken Ave. The ground cover on the north side of Victoria Park Ln south of the horse trail from 468 feet west of Milliken Ave to Milliken Ave. Ground Cover area:53,416 square feet Turf area:49,587 square feet Hardscape area:20,173 square feet VG-3 The turf and ground cover north of the sidewalk on the north side of Fairmont Way from Nova Ct continuing on that curb line to York Pl and the turf south of the sidewalk on the north side of Fairmont Way from Armstrong Pl continuing on that curb line to York Pl. The ground cover on the west side of York Pl from Fairmont Way to Delaware St and the ground cover on the east side of York Pl. The turf and ground cover on the west side of Fairmont Way from Emerson St continuing along that curb line to Armstrong Pl. The turf and ground cover on the east and west sides of Biola Pl. Ground Cover area:57,189 square feet Turf area:38,343 square feet Hardscape area:26,848 square feet VG-4 The turf and ground cover on the south side of Fairmont Way from Armstrong Pl to Milliken Ave. The turf and ground cover on the west side of Milliken Ave from Fairmont Way to the Southern Pacific Railroad. The Milliken Ave median from Fairmont Way to the Southern Pacific Railroad. The ground cover on the north side of the Southern Pacific Railroad from Deer Creek Channel to Rochester Ave including the paseo to Baylor St. The ground cover on the north side of Fairmont Way from Milliken Ave to Nova Ct. The turf on the north side of Fairmont Way from Milliken Ave to Armstrong Pl. Ground Cover area:202,163 square feet Turf area: 19,751 square feet Hardscape area: 12,278 square feet VG-5 The paseo from Biola Pl to Amarillo St to Delaware St at York Pl. Ground Cover area:12,448 square feet Turf area:44,896 square feet Hardscape area: 7,992 square feet Page 259 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 13 Fiscal Year 2023/24 ATTACHMENT 2 VG-6 The paseo beginning at the northeast corner of Victoria Groves Park and Fairmont Way and extending to the Deer Creek Channel. Ground Cover area:73,442 square feet Turf area:74,778 square feet Hardscape area:16,629 square feet VG-7 The paseo that begins on the south side of Donnelly St at Fairmont Way and continues to the Deer Creek Channel including the southward extension on the west side of Albright Pl from Donnelly St to Pacific and the paseo from Pacific to Charleston St. Ground Cover area:43,427 square feet Turf area:51,765 square feet Hardscape area:15,806 square feet VG-8 The ground cover on the west side of Milliken Ave from 566 feet north of Victoria Park Ln to Victoria Park Ln. The ground cover and turf north of the horse trail on Victoria Park Ln from Milliken Ave to Fairmont Way. The ground cover on the east side of Fairmont Way from Victoria Park Ln to 156 feet north of Victoria Park Ln. Ground Cover area:21,614 square feet Turf area: 8,614 square feet Hardscape area: 8,281 square feet VG-9 The ground cover on the east side of Fairmont Way from 156 feet north of Victoria Park Ln to Kenyon Way. The ground cover on the south side of Kenyon Way from Fairmont Way to 197 feet east of Fairmont Way. The turf on the south side of Kenyon Way from Fairmont Way to 316 feet east of Fairmont Way. The turf and ground cover on the south side of Baltimore Dr from Fairmont Way to Baltimore Ct. The turf and ground cover on the north side of Baltimore Dr from Fairmont Way to Vanderbilt Pl. The turf and ground cover on the east side of Vanderbilt Pl from Baltimore Dr to Brown Dr. The paseo from Vanderbilt Pl and Brown Dr to Kenyon Way. Ground Cover area:48,481 square feet Turf area:11,357 square feet Hardscape area:13,542 square feet Page 260 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 14 Fiscal Year 2023/24 ATTACHMENT 2 VG-10 The ground cover on the south side of Kenyon Way from 197 feet east of Fairmont Way to Milliken Ave. The turf on the south side of Kenyon Way from 316 feet east of Fairmont Way to Milliken Ave. The ground cover on the west side of Milliken Ave from Kenyon Way to 566 feet north of Victoria Park Ln. The turf and ground cover on the west side of Capitol Pl from Brown Dr to Bethany Dr. The paseo from Capitol Pl and Brown Dr to Kenyon Way. Ground cover area:34,241 square feet Turf area:11,031 square feet Hardscape area: 5,320 square feet VG-11 The east and west side parkways and median of Milliken Ave from Base Line Rd to the Southern Pacific Railroad. The north side of Base Line Rd from 542 feet east of Milliken Ave to Milliken Ave. Ground Cover area:31,367 square feet Turf area:17,264 square feet Hardscape area:25,524 square feet VG-12 The turf and ground cover on the south side of Fairmont Way from the southeast corner of Milliken Ave and Fairmont Way along the curb line to Victoria Park Ln. The turf and ground over on the west side of Fairmont Way from the southwest corner of Victoria Park Ln and Fairmont Way (located east of Milliken Ave) and continuing along the curb line to Milliken Ave. The turf on the east side of Milliken Ave from the Southern Pacific Railroad to 730 feet south of Victoria Park Ln. The ground cover on the east side of Milliken Ave from the Southern Pacific Railroad to 766 feet south of Victoria Park Ln. Ground Cover area:53,068 square feet Turf area:36,431 square feet Hardscape area:27,004 square feet VG-13 The paseos from Victoria Park Ln to Verona Dr, Verona Dr to Napoli Dr, and Genova Rd to Tivoli Pl. Ground Cover area:17,993 square feet Turf area:16,344 square feet Hardscape area: 8,376 square feet Page 261 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 15 Fiscal Year 2023/24 ATTACHMENT 2 VG-14 The Base Line Rd median from Milliken Ave to Ellena East. The turf and ground cover on the north side of Base Line Rd from Ellena East to Ellena West. The turf and ground cover on the east side of Ellena West from Base Line Rd and following the curb line to Kenyon Way. The north side of Ellena West from Kenyon Way to Casoli Pl. The turf and ground cover on both sides of Casoli Pl from Ellena West to Candela Dr. The turf and ground cover on both sides of Crema Pl from Ellena West to Candela Dr. Ground Cover area:89,456 square feet Turf area:62,999 square feet Hardscape area:44,826 square feet VG-15 The turf and ground cover on the west side of Rochester Ave from the Southern Pacific Railroad to Base Line Rd. The turf and ground cover on the north side of Base Line Rd from Rochester Ave to Ellena East. The Base Line Rd Median from Rochester Ave to Ellena East. The turf and ground cover on the east side of Ellena East from Base Line Rd and continuing along that curb line to 275 feet north of Berra Rd. The turf and ground cover on both sides of Berra Rd from Ellena East to Comiso Way. Ground Cover area:58,588 square feet Turf area:57,306 square feet Hardscape area:36,014 square feet VG-16 The paseo from Base Line Rd to Ellena West with entrances to Amelia Dr and Pavola Dr. Ground Cover area: 9,661 square feet Turf area:11,529 square feet Hardscape area: 5,804 square feet VG-17 The paseo from Fairmont Way to the Southern Pacific Railroad. The paseo from Fabriano Pl to Martano Pl. Ground Cover area:35,351 square feet Turf area:40,291 square feet Hardscape area:16,394 square feet VG-18 The paseo from Rapallo Dr to Gandino Dr and south to the Southern Pacific Railroad. Ground Cover area:4,281 square feet Hardscape area:1,308 square feet VG-19 The paseo from Tolentino Dr to Pizolli Pl and to Tolentino Dr. Ground Cover area:12,555 square feet Turf area:17,856 square feet Hardscape area: 7,380 square feet Page 262 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 16 Fiscal Year 2023/24 ATTACHMENT 2 VG-20 The turf on the east side of Milliken Ave from 730 feet south of Victoria Park Ln to Victoria Park Ln. The ground cover on the east side of Milliken Ave from 766 feet south of Victoria Park Ln to Victoria Park Ln. The turf and ground cover on the south side of Victoria Park Ln from the southeast corner at Milliken Ave heading east to Fairmont Way. The turf and ground cover on the north side of Victoria Park Ln from Parma Pl to the northeast corner of Milliken Ave and Victoria Park Ln. The ground cover on the west side of Parma Pl from Victoria Park Ln to Lomello Way. The Victoria Park Ln median from Milliken Ave to Pandino Ct. The Milliken Ave median from Victoria Park Ln to 440 feet south of Kenyon Way. The parkway on the west side of Milliken Ave from 420 feet south of Kenyon Way to Victoria Park Ln. Ground Cover area:96,750 square feet Turf area:77,461 square feet Hardscape area:22,177 square feet VG-21 The ground cover on the east side of Parma Pl from Victoria Park Ln to Lomello Way. The ground cover on the north side of Victoria Park Ln from Parma Pl to 653 feet east of Kenyon Way. The turf on the north side of Victoria Park Ln from Parma Pl to 547 feet east of Kenyon Way. The turf and ground cover on the south side of Victoria Park Ln from Fairmont Way to 422 feet east of Kenyon Way. The turf and ground cover on the east and west sides of Kenyon Way from Victoria Park Ln to the Southern Pacific Railroad. The paseo from Kenyon Way to Rapallo Dr. The paseo from Kenyon Way to Bari Dr. The Victoria Park Ln median from Pandino Ct to Portofino Dr. Ground Cover area:85,865 square feet Turf area:41,994 square feet Hardscape area:34,478 square feet VG-22 The ground cover on the north side of Victoria Park Ln from 653 feet east of Kenyon Way to Rochester Ave. The turf on the north side of Victoria Park Ln from 547 feet east of Kenyon Way to Rochester Ave. The Victoria Park Ln median from Portofino Dr to Rochester Ave. The turf and ground cover on the south side of Victoria Park Ln north of the sidewalk from Kenyon Way to the east side of Vintage Park. The turf and ground cover on the south side of Victoria Park Ln from the east side of Vintage Park to Rochester Ave. The turf and ground cover on the west side of Rochester Ave from Victoria Park Ln to the Southern Pacific Railroad. Ground Cover area:115,144 square feet Turf area: 57,927 square feet Hardscape area: 20,863 square feet Page 263 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 17 Fiscal Year 2023/24 ATTACHMENT 2 VG-23 The turf and ground cover on the east side of Kenyon Way from Victoria Park Ln to 409 feet west of Grimaldi Rd. The ground cover on the south side of Portofino Dr from Kenyon Way to Bergano Pl. The turf and ground cover on the north and south side of Lark Dr from Kenyon Way to the west property line of Rancho Cucamonga High School. The ground cover on the east and west side of Matera Pl from Lark Dr to Pescara Rd. The ground cover on the north and south side of Grimaldi Rd from Kenyon Way to Brindisi Ct. The turf and ground cover on the west side of Kenyon Way from Lark Dr to Victoria Park Ln. The ground cover on the north and south side of Marcello Way from Kenyon Way to Landriano Pl. The paseo from southwest corner of Kenyon Park to Kenyon Way. Ground Cover area:63,733 square feet Turf area:82,565 square feet Hardscape area:39,297 square feet VG-24 The north side of Kenyon Way from Autumn Glen Ct to Woodruff Pl. The east side of Woodruff Pl from Kenyon Way to 403 feet north of Kenyon Way. Ground Cover area:8,447 square feet Turf area:5,320 square feet Hardscape area:5,622 square feet VG-25 The paseo west of Torino Rd from Kenyon Way to Highland Ave. The turf and ground cover on the south side of Highland Ave from the northwest corner of Tract 13440 to the east end of Tract 13440. Ground Cover area:40,800 square feet Turf area:24,134 square feet Hardscape area:14,353 square feet VG-26 The paseo from Brindisi Ct to Messina Pl. The turf and ground cover on the north side of Brindisi Ct to the end of the cul-de-sac. The turf and ground cover on the west side of Messina Pl from the paseo to Treviso Way. Ground Cover area:18,905 square feet Turf area: 1,141 square feet Hardscape area: 3,615 square feet VG-27 The Milliken Ave median from 440 feet south of Kenyon Way to Highland Ave. The parkway on the west side of Milliken Ave from 420 feet south of Kenyon Way. Ground Cover area:4,030 square feet Turf area:3,006 square feet Hardscape area:4,222 square feet VG-28 The east side of Rochester Ave from Victoria Park Ln to Highland Ave. Ground Cover area:60,902 square feet Hardscape area: 5,593 square feet Page 264 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 18 Fiscal Year 2023/24 ATTACHMENT 2 VG-29 The north side of Kenyon Way from Milliken Ave to Fairmont Way. The groundcover on the east side of Fairmont Way, east of the sidewalk, from Kenyon Way to the 210 freeway. Ground Cover area:20,178 square feet Turf area:16,877 square feet Hardscape area: 5,736 square feet VG-30 The south side of Tresenda Dr from Santo Pl to Sappada Pl. The paseo from Sappada Pl to Carano Pl. The south side of Montella Dr from Carano Pl to Trivento Pl. Ground Cover area:6,797 square feet Turf area:2,462 square feet Hardscape area:4,860 square feet VG-31 The east side of Brienza Pl from Larino Dr to Letini Dr. The west side of Tindari Pl from Letini Dr to Larino Dr. The greenbelt on the south side of Marconi Pl from Trivento Pl to Comiso Way. The east side of Comiso Way from Scalea Pl to Santo Pl. Ground Cover area:23,419 square feet Turf area:18,351 square feet Hardscape area:13,764 square feet VG-32 The north side of Candela Dr from Terni Pl to Bettola Pl. Ground Cover area:20,172 square feet Turf area: 8,190 square feet Hardscape area: 8,292 square feet VG-33 The paseo at the north end of Sapri Pl to the Southern Pacific Railroad. Ground Cover area:894 square feet Hardscape area:318 square feet VG-34 The paseo at the north end of Bronte Pl to the Southern Pacific Railroad. Ground Cover area:894 square feet Hardscape area:318 square feet VG-35 The east side of Rochester Ave from 555 feet south of Palmi Dr to Victoria Park Ln. The south side of Victoria Park Ln and median from Rochester Ave to east side of Deer Creek Channel. Ground Cover area:53,646 square feet Turf area:11,150 square feet Hardscape area:17,555 square feet Page 265 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 19 Fiscal Year 2023/24 ATTACHMENT 2 VG-36 The north side of Victoria Park Ln from the east side of Deer Creek Channel to Rochester Ave. Ground Cover area:55,780 square feet Turf area:10,500 square feet Hardscape area: 8,004 square feet VG-37 The paseo at the end of Ardmoor Ct to the Southern Pacific Railroad. Ground Cover area:1,350 square feet Hardscape area: 950 square feet VG-38 The east side of Milliken Ave from 106 feet north of Victoria Park Ln to Kenyon Way. The north and south side of Spring Mist Dr from Milliken Ave to Summerstone Ct. The south side of Kenyon Way from Milliken Ave to Kenyon Park. Ground Cover area:28,051 square feet Turf area: 4,533 square feet Hardscape area:12,879 square feet VG-39 The north side of Victoria Park Ln from Kenyon Way paseo to 132 feet east of Milliken Ave. The Kenyon Way paseo from Victoria Park Ln to Fairwinds Ct. The paseo from Victoria Park Ln to the south west corner of Kenyon Park. Ground Cover area:55,089 square feet Turf area:13,120 square feet Hardscape area: 7,676 square feet VG-40 The south side of Highland Ave from 413 feet west of Highland Ave paseo to Highland Ave paseo. The east side of Highland Ave paseo from Highland Ave to Kenyon Way. The north side of Kenyon Way from Highland Ave paseo to Autumn Glen Ct. Ground Cover area:56,553 square feet Hardscape area:12,314 square feet VG-41 The west side of Rochester Ave from 294 feet south of Highland Ave to Lark Dr. The north side of Lark Dr from Rochester Ave to 1230 feet west of Rochester Ave. Ground Cover area:31,413 square feet Hardscape area:13,338 square feet VG-42 The south side of Highland Ave from 1,314 feet west of Rochester Ave to Rochester Ave. The west side of Rochester Ave from Highland Ave to 294 feet south of Highland Ave. The north side of Highland Ave from Rochester Ave to Woodruff Pl. Ground Cover area:40,346 square feet Hardscape area:15,445 square feet Page 266 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 20 Fiscal Year 2023/24 ATTACHMENT 2 VG-43 The north side of Victoria Park Ln and the median from Day Creek Blvd to Day Creek Channel. The east and west side of Kensington Pl from Victoria Park Ln to Stratford Dr. Ground Cover area:70,669 square feet Turf area: 7,888 square feet Hardscape area:18,426 square feet VG-44 The west side of Day Creek Blvd from 572 feet north of Silverberry St to Day Creek Blvd. The south side of Silverberry St from Kensington Pl to Day Creek Blvd. Ground Cover area:36,835 square feet Hardscape area:24,376 square feet VG-45 The west side of Milliken Ave and the Milliken Ave median from the 210 freeway to Kenyon Way. Ground Cover area:10,658 square feet Turf area: 610 square feet Hardscape area: 5,589 square feet VG-46 The Base Line Rd median from 657 feet east of Virginia Pl to Rochester Ave. The north side of Base Line Rd from 278 feet east of Virginia Pl to Rochester Ave. The paseo from the northeast corner of Rochester Ave and Base Line Rd to Huntley Dr. The east side of Rochester Ave from Base Line Rd to 105 feet north of Shenandoah Dr. Ground Cover area:35,823 square feet Hardscape area:23,645 square feet VG-47 The north side of Base Line Rd from 400 feet east of Day Creek Blvd to Day Creek Blvd. Base Line Rd median from Day Creek Blvd to 595 feet east of Day Creek Blvd. Ground Cover area:9,515 square feet Hardscape area:7,926 square feet VG-48 The east side of Day Creek Blvd and median from Base Line Rd to Victoria Park Ln. The south side of Victoria Park Ln from Day Creek Blvd to 390 feet east of Day Creek Blvd. Ground Cover area:50,318 square feet Turf area: 3,234 square feet Hardscape area:29,217 square feet Page 267 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 21 Fiscal Year 2023/24 ATTACHMENT 2 VG-49 The north side of Victoria Park Ln and median from 390 feet east of Day Creek Blvd to Day Creek Blvd. The east side of Day Creek Blvd from Victoria Park Ln to Highland Ave. The south side of Highland Ave from Day Creek Blvd to 440 feet east of Day Creek Blvd. Ground Cover area:51,459 square feet Turf area: 3,930 square feet Hardscape area:32,296 square feet VG-50 The west side of San Carmela Ct from 389 feet north of Base Line Rd to Base Line Rd. The north side of Base Line Rd from Carmela Ct to 264 feet west of Durness Pl. Ground Cover area:18,043 square feet Hardscape area:12,383 square feet VG-51 The Paseo south of Saxon Dr to Southern Pacific Railroad. Ground Cover area:1,398 square feet Hardscape area: 969 square feet VG-52 The north side of Sugar Gum St from Milliken Ave to Kensington Pl. The south side of Sugar Gum St from Milliken Ave to 111 feet east of Suffolk Pl. Ground Cover area:4,362 square feet Hardscape area:3,325 square feet VG-53 The south side of Victoria Park Ln from 296 feet west of Kensington Pl to Milliken Ave. The west side of Day Creek Blvd from Victoria Park Ln to 397 feet south of Sugar Gum St. Ground Cover area:28,532 square feet Turf area:11,070 square feet Hardscape area: 7,720 square feet VG-54 The east side of Rochester Ave from Shenandoah Dr to the Southern Pacific Railroad. Ground Cover area:6,864 square feet Hardscape area:5,136 square feet VG-55 The paseo north of Westhaven Pl to the Southern Pacific Railroad. Ground Cover area:1,775 square feet Hardscape area:2,575 square feet Page 268 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 22 Fiscal Year 2023/24 ATTACHMENT 2 VG-56 The south side of Highland Ave from 1,317 feet west of Day Creek Blvd to 1,085 feet west of Day Creek Blvd including the non-irrigated slope on the south side of the sidewalk. Ground Cover area:5,274 square feet Hardscape area:1,761 square feet VG-57 The north side of Highland Ave from Fairmont Way to the Day Creek Channel. Ground Cover area:16,157 square feet Hardscape area:17,405 square feet VG-58 The south side of Kenyon Wy from the Kenyon Park paseo entrance to Lark Dr. The south side of Lark Dr. from 568 feet west of Kenyon Wy to Kenyon Wy. The paseo east of Kenyon Park from Kenyon Wy to the east/west paseo of site VG-23. Ground Cover area:24,072 square feet Hardscape area: 9,807 square feet Ground cover, shrubs and turf areas that make up parkways, median islands and paseos are maintained under contract by a private landscape maintenance company. Parks are maintained by the City's Park Maintenance Crews. Map of Improvements The following page shows the approximate location (for reference only – may not include all) of landscaping improvements, including irrigation sites, and parks and community trails to be maintained by the District. Page 269 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 23 Fiscal Year 2023/24 ATTACHMENT 2 Page 270 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 24 Fiscal Year 2023/24 ATTACHMENT 2 ESTIMATE OF COSTS The estimated costs of maintenance and servicing of the improvements as described in the Plans and Specifications are summarized below. Each year, as part of the District levy calculation process, the costs and expenses are reviewed and the annual costs are projected for the following fiscal year. District Budget Fis c al Year 2023/24 Budget Expe nditure s Pe rsonne l Se rv ice s: Regular Salaries 632,100$ Overtim e Salaries 1,090 Part-tim e Salaries 62,900 Fringe Benefits 333,480 Subtotal - Pe rsonne l 1,029,570 Ope rations and M ainte nance : Operations and Maintenanc e: O & M/General 90,300 Emergency Equipm ent and Vehicle Rental 200 Subtotal - Operations and Maintenanc e 90,500 Contract Servic es: Contrac t Servic es/General 1,833,860 Tree Maintenance 284,240 Contrac t Vehic le Maintenance and Repair 5,000 Subtotal - Contrac t Servic es 2,123,100 Utilities : W ater Utilities 952,430 Elec tric Utilities 60,950 Subtotal - Utilities 1,013,380 Asses sment Administration 24,760 Admin./General Overhead 373,270 Interfund Alloc ation 86,840 Subtotal - Ope rations and Mainte nance 3,711,850 Capital Expe nditure s: Captial Outlay - Equipm ent 8,000 Captial Outlay - Improvem ents Other Than Building 25,000 Captial Projec ts 1,675,000 Subtotal - Capital Expe nditure s 1,708,000 T otal Expe nditure s Budge t 6,449,420$ Page 271 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 25 Fiscal Year 2023/24 ATTACHMENT 2 Fiscal Year 2023/24 Budget Re v e nue s T axe s: Es tim ated As s es sments, Net of Estimated Delinquenc ies 4,038,580$ Antic ipated Prior Year Delinquencies Collec tion 27,410 Subtotal - T axe s 4,065,990 Othe r Re v e nue s: Interes t Earnings 58,900 Park Maintenanc e Fees 960 Subtotal - Othe r Re v e nue s:59,860 T ransfe r In: Trans fer In - General Fund 369,270 Trans fer In - State Grants Fund 250,000 619,270 T otal Re v e nue s Budge t 4,745,120 Contribution to/(Use of) Fund Balance (1,704,300)$ Total Gros s Es tim ated Assessments 4,038,574.53$ Total Dis tric t EBU Count 81,554.33 Ac tual As s es s m ent per EBU - Fiscal Year 2023/24 49.53$ Maxim um Allowable Assessment per EBU - Fis c al Year 2023/24 52.71$ Each year, prior to the assessments being placed on the tax roll, the City will review the budget and determine the amount needed to maintain the improvements for the upcoming fiscal year. The actual assessment per Equivalent Benefit Unit (“EBU”) will be based on the total amount of funds needed to maintain the improvements in a satisfactory and healthy condition. The actual assessment amount may be the same or lower than the maximum allowable assessment; however, it may not exceed the maximum after the application of the cost of living inflator, as defined in this report, unless the excess increase is approved by the property owners in accordance with Proposition 218. It is the intent of the City to maintain an Operating Reserve which shall not exceed the estimated costs of maintenance and servicing of the improvements prior to December 10 of the fiscal year, or when the City expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. The reserve balance information for the District is as follows: Operating Res erve Es timated Res erve Fund Balanc e, June 30, 2023 3,162,942$ Contribution to/(Us e of) Reserve - Fis c al Year 2023/24 (1,704,300) Es timated Res erve Fund Balanc e, June 30, 2024 1,458,642$ Page 272 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 26 Fiscal Year 2023/24 ATTACHMENT 2 Definitions of Budget Items The following definitions describe the costs and expenses included in the District Budget for the maintenance and servicing of the improvements: Personnel Services: This item includes the costs attributed to the salaries of all full-time and part-time employees dedicated to maintenance of the District improvements. Additionally, this includes benefits available to City employees. Operations and Maintenance: This item includes the costs of City staff to perform maintenance duties within the boundaries of the District. Contract Services: This item includes the contract costs of a landscape maintenance company responsible for the ongoing maintenance of the District improvements. Utilities: This item includes the costs to furnish electricity, water, and telephone services, as required, for the operation and maintenance of the sprinklers and irrigation controllers in the District. Assessment Administration: This item includes the cost of all particular departments and staff of the City, as well as consultants, for providing the administration, coordination and management of District services, operations, and incidental expenses related to the District. This item also includes creation of an annual Engineer's Report, resolutions and placing the assessment amounts onto the County tax roll each year, along with responding to any public inquiries and future Proposition 218 balloting proceedings. General Overhead: This item includes the costs of all central services departments of the City for providing the coordination of District services, inspections, annual bid management, responding to public concerns, public education, accounting, auditing and procedural matters associated with the District. This item also includes an allocation for general City staff time for administrative functions and systems that provide for a functional and operational District within the City's administrative structure. Capital Outlay: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include new monuments, irrigation systems, and other large improvements. Other Revenues: This includes other revenues that are not levied through the annual assessments that support the District operations. These other revenues may include: interest earnings, other rental/lease income (cell site tower leases), Park Maintenance Fees, Sports Field User Group Rentals, and parking permits (Metrolink Station paid parking). Page 273 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 27 Fiscal Year 2023/24 ATTACHMENT 2 BENEFITS FROM IMPROVEMENTS AND QUANTIFICATION Benefits from Improvements The improvements previously defined are expected to confer certain special benefits to parcels within the District. The benefits are described below. Sidewalks and Community Trails People walk for a variety of reasons, whether the reason is to commute to work or school, run errands, shop, leisure activities, fitness, or some other purpose. To enhance the overall walking experience, pedestrians seek out and utilize sidewalk facilities and community trails that are in close proximity to their property and provide a safe place to walk as well as an environment that provides a certain amount of visual interest. Sidewalks and community trails serve as a critical component in the transportation network providing users access to parks and recreational areas, schools, commercial areas, and neighbors. According to the U.S. Department of Transportation Federal Highway Administration (FHWA) sidewalks provide many benefits including safety, mobility and healthier communities (FHWA, n.d). •Improved Aesthetics: A survey conducted by DMB (an Arizona based commercial developer) found that there was a strong demand for communities characterized by pedestrian access, a sense of connection, and a sense of community and diversity (Urban Land Institute, 2006). According to the Urban Land Institute report Creating Walkable Places: Compact Mixed-Use Solutions, people want their neighborhoods to provide more opportunities to walk (Urban Land Institute, 2006). A survey sponsored by the Surface Transportation Policy Project found that 55% of respondents would like to walk more, 63% would like to run errands on foot and walk to stores, and 79% would like sidewalks and other places to walk and exercise (Urban Land Institute, 2006). The continued maintenance of the inter-connecting sidewalks and community trails improves the livability and appeal for properties within the District. •Increased Safety: According to the FHWA, sidewalks reduce roadway accidents, including pedestrian/motor vehicle accidents. In addition, roadways without sidewalks are more than twice as likely to have pedestrians involved in accidents compared to sites with sidewalks on both sides of the street (FHWA, n.d.). In 2008, the National Highway Traffic Safety Administration’s (NHTSA) National Pedestrian Crash Report identified California as one of the states with the highest number of pedestrian deaths (NHTSA, 2008). •Economic Activity: Uniform and well-maintained sidewalk and community trail improvements create cohesion throughout the District. This cohesion enhances both the residential and retail experience as well as encourages maximum use of building and lot area. According to Active Living Research (2010), economic benefits of walkable developments include enhanced marketability and faster sales or leases than conventional development. The National Complete Streets Coalition notes that street Page 274 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 28 Fiscal Year 2023/24 ATTACHMENT 2 design that is inclusive of all modes of transportation, where appropriate, not only improves conditions for and access to existing businesses, but also is a proven method for attracting new development (Pugliese, 2008). Street Landscaping The overall appeal and safety of an area is enhanced when landscaping improvements are in place and kept in a healthy and satisfactory condition. Conversely, appeal and safety decreases when landscaping is overgrown, unsafe or destroyed by the elements or vandalism. •Improved Aesthetics: Street landscaping improvements improve the livability, commercial activity, appearance and desirability for properties within the boundaries of the District. Regular maintenance ensures that the improvements do not reach a state of deterioration or disrepair so as to be materially detrimental to properties adjacent to or in close proximity to the improvements within the District. According to the Victoria Transport Policy Institute (2011), streetscapes have a significant effect on how people view and interact with their community. With streetscapes that are safe and inviting, people are more likely to walk, which can help reduce automobile traffic, improve public health, stimulate local economic activity and attract residents to the community. •Increased Safety: Safety for pedestrians involves not only a degree of protection from vehicular accidents, but also from criminal activity. Well maintained areas mitigate crime, especially vandalism, and enhance pedestrian safety. A recent study has found that after landscape improvements were installed, there was a 46% decrease in crash rates across urban arterial and highway sites and a second study reviewed found a 5% to 20% reduction in mid-block crashes after trees and planters in urban arterial roads were put in place. In addition, there is less graffiti, vandalism, and littering in outdoor spaces with natural landscapes than in comparable plant-less spaces (Wolf, 2010). The Victoria Transport Policy Institute (2011) has found that streetscapes reduce traffic speeds, and when combined with improved pedestrian crossing conditions, can significantly reduce collisions. Furthermore, maintained sidewalks and trails increase pedestrian safety by reducing the number of trips and falls from those using the improvements. •Economic Activity: Well-maintained street landscape improvements not only make adjacent properties appear more stable and prosperous, but can spur investment in the property. According to the FHWA, landscaped sidewalks create an inviting place for customers to shop and do business (FHWA, 2001). Parks Park facilities enhance the overall quality of an area and are an important component of complete and sustainable neighborhoods. Neighborhood parks offer both active and passive recreational opportunities: a place to play, exercise, spend time with neighbors, or relax. The parks within the District are developed and maintained to appeal to all age groups and interests, Page 275 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 29 Fiscal Year 2023/24 ATTACHMENT 2 and promote a healthy community. Recreation and park facilities have proven to be a potent factor in maintaining a high standard of livability in the community. •Improved Aesthetics. The park improvements provide beautification, shade and enhancement to properties, which creates a sense of community for the parcels within the District. The overall appeal and desirability of an area is enhanced when public parks and recreational facilities are in place, improved, operable, safe, clean and maintained. Conversely, appeal and desirability decrease when park and recreational facilities are unsafe or destroyed by the elements or vandalism. According to The Trust for Public Land, Corporate CEOs say that employee quality of life is the third most important factor in locating new businesses (Harnik and Welle, n.d.). •Economic Activity: Parks attract both businesses and residents to communities. According to The Trust for Public Land, small company owners say recreation, parks and open spaces in close proximity to properties used for business purposes are the highest priority in choosing a new location for their businesses. As a result of the collective improvements (sidewalks, community trails, street landscaping and parks) being maintained, the overall livability for properties within the District will increase. Livability encompasses several qualities and characteristics that are unique to a specific area. The Victoria Transport Policy Institute (2011) expands on the concept of livability and the various benefits associated with that designation: The livability of an area increases property desirability and business activity. Livability is largely affected by conditions in the public realm, places where people naturally interact with each other and their community, including streets, parks, transportation terminals and other public facilities. Livability also refers to the environmental and social quality of an area as perceived by employees, customers and visitors. This includes local environmental conditions, the quality of social interactions, opportunities for recreation and entertainment, aesthetics, and existence of unique cultural and environmental resources. Quantification of Benefit As a result of the District maintenance and servicing activities, there will be a level of general benefits to people that do not live in or intend to conduct business within the District. In order for property within the District to be assessed only for that portion of special benefits received from the District maintenance and servicing activities, general benefits provided by the ongoing maintenance and servicing of the improvements needs to be quantified. The amount of general benefit that is provided from the District maintenance activities cannot be funded via property owners’ assessments. The District currently consists of 5,843 single family residences, 525 condominium units, 589 multi-family (apartment) units, 51.88 acres of commercial property, 4 schools, 1 Church, 1 fire Page 276 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 30 Fiscal Year 2023/24 ATTACHMENT 2 station, and 56.54 acres of undeveloped property. Properties are classified by their land use code as shown on San Bernardino County’s latest secured roll. Sidewalks and Community Trails The City is comprised of many smaller communities located throughout the City. Most of the communities have parks and schools that are proximate to and serve the residents in their immediate vicinity. There are four schools in addition to the six parks within the District. Two of the four schools have school District boundaries that are only within the District. However, two of the schools include areas outside of the District as part of their school district boundaries. The primary reason persons living outside the District would enter the District would be to access the schools. Therefore, we must consider the school district boundary areas outside of the District when analyzing the pedestrian traffic that may use the sidewalks and community trails within the District. The Summary of Travel Trends, 2009 National Household Travel Survey (NHTS) prepared by the U.S. Department of Transportation Federal Highway Administration (FHWA, 2011) analyzed the number of person trips by various modes of transportations such as private vehicle, transit, walking or some other means of transportation. According to the Pacific Division data extracted from the 2009 NHTS database, of the annual 181,703 (in millions) total person trips, 21,252 (in millions) or 11.70% of those person trips were made by using walking as their mode of transportation (FHWA, 2011). According to the U.S. Census Bureau (2010), the average household size in the City is 2.98 persons. Based on this average household size, and considering there are 6,957 residential units within the District, there are approximately 20,732 people residing within the District boundaries. There are an estimated 12,000 residential units within the school district boundaries that are not within the boundaries of the District. Based on the City’s average household size, there are approximately 35,760 persons residing outside of the District boundaries, but within the school district boundaries. The following shows the estimated number of residential units and persons within the school district boundaries and either within or outside the District boundaries: School District Population Estimated Number of Residential Units Estimated Number of Persons Within District Boundaries 6,957 20,732 Outside District Boundaries 12,000 35,760 Total Population 18,957 56,492 In order to determine the estimated total number of persons who are within close proximity to the sidewalk and trail improvements, and would utilize walking as their mode of transportation, we applied the 11.70% of person trips reported from the NHTS Pacific Division study, to the total number of persons within District and school district boundaries (56,492). There are Page 277 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 31 Fiscal Year 2023/24 ATTACHMENT 2 approximately 6,610 people within proximity of the District that utilize walking as their mode of transportation. Applying the 2009 NHTS walking trip percentage to the District population (20,732), we estimate that of the 6,610 persons who are within close proximity of the District and use walking as their primary mode of transportation, 2,426 people are within the District boundaries. Therefore, the total surrounding neighborhood area population, located outside of the District boundaries, but in close proximity to the sidewalk and trail improvements, who use walking as their primary mode of transportation is estimated to be 4,184 people. School District Population Estimated Number of Persons Within District Boundaries 2,426 Outside District Boundaries 4,184 Total Population – uses walking as primary mode of transportation 6,610 In order to obtain a better picture of the overall level of general benefit provided by the sidewalk and community trail improvements, the pedestrian traffic that utilizes walking as the mode of transportation that will seek out and use sidewalks and community trails within the District’s boundaries, but live outside of the District, must be considered. The 2009 NHTS further details the purposes of the 21,252 (in millions) reported walking trips. Based on the property types within the District, people utilizing the sidewalks and community trails within the District would most likely do so for the following reasons: walking to school, day care or religious activity, social or recreational activities, and shopping or running errands. The following details the number of walking trips, based on the 2009 NHTS study, for each of the activities that are the most likely reasons people outside of the District would use the sidewalk and community trail improvements within the District: Trip Purpose Number of Walking Trips (in millions) School/Daycare/Religious Activity 872 Shopping/Errands 5,820 Social/Recreational 2,268 Don’t know/Other 139 Total 9,099 Of the total number of walking trips reported, 9,099 (in millions) or 42.81% are for purposes that persons outside of the District would utilize the sidewalk and trail improvements within the District. Applying this percentage (42.81%) to the number of people using walking as their mode of transportation and that live outside of the District (4,184), but use the sidewalks and community trails within the District, there are approximately 1,791 people using the maintained sidewalks and community trails for general benefit purposes. The persons engaging in general benefit activities represents 3.17% of the total school district population (56,492), and is therefore considered to be District general benefit. Page 278 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 32 Fiscal Year 2023/24 ATTACHMENT 2 School District Boundary General Benefit 3.17% Given the location and nature of the improvements, it is very unlikely the public at large would seek out or use the sidewalks and trails within the District, but would use those proximate to their own properties. The City has regional trails that connect different areas of the City, and those trails do appeal to and attract other residents of the City as well as residents that live outside the City. Nevertheless, it is likely that certain members of the public at large use the sidewalks or community trails within the District. As such, we have assigned a 1.00% general benefit for the sidewalk and community trails to the public at large. Public at large General Benefit 1.00% Based on the above calculations, the general benefit portion of the improved aesthetics, increased safety, and economic activity benefits resulting from the sidewalk and trail improvements is estimated to be 4.17% and the special benefit is estimated to be 95.83%. Sidewalk and Trail General Benefit 4.17% Street Landscaping Based upon the City’s General Plan (2010) Roadway Hierarchy, the streets within the District are classified into one of the following categories: arterial, collector, or local (minor) streets. The majority of street landscaping is located along roads classified as collector and local streets and primarily situated within the public right-of-ways of the internal local street network. A portion of the maintained landscaping is, however, located along the arterial streets, and, as such, provides some general benefit to pass-through traffic. Local Streets For purposes of determining general and special benefits, all streets within the District other than the specific streets listed as collector and arterial streets below are considered local streets. The local streets within the District were intended to serve individual neighborhoods and not to be pass-through streets, but cul-de-sacs or loop roads to reduce through traffic (Victoria Community Plan, 1980). In addition, according to the City’s General Plan (2010), the primary intended purpose of local streets is to serve fronting properties. From a visual inspection of the layout of the District one must conclude that the purpose of the local streets is exclusively intended for the benefit of the parcels on such streets. There is no local street that provides a direct or efficient means of traveling from one place to another such that one could reasonably expect a driver to purposefully choose the District’s local streets as the best route for travel unless necessary because the route either began or ended with a parcel in the District. A route beginning or ending with a parcel within the District does not include the “general public” for purposes of determining general benefit. Page 279 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 33 Fiscal Year 2023/24 ATTACHMENT 2 However, one can imagine a minimal degree of pass through traffic even on something such as a cul-de-sac. As expressed by the Court in Beutz v. County of Riverside (2010), “... courts of this state have long recognized that virtually all public improvement projects provide general benefits." Given the location to the schools, parks, and shopping in the City, there are bound to be drivers that make use of the local streets for no other reason but to turn around or go back from where they came, especially if they are dropping their children off at one of the schools. Additionally, given the nature of the street landscaping, one could imagine a small degree of “residential tourism” wherein drivers are in fact simply “passing through” to enjoy the beautiful views of the homes, the natural surroundings or visiting friends. A conservative estimate of 1.00% for each scenario would result in the general benefit portion of the improved aesthetics, increase safety, and economic activity benefits resulting from the street landscaping improvements on local streets to be 2.00% and the special benefit is estimated to be 98.00%. Local Street General Benefit 2.00% Collector Streets: Victoria Park Ln, Etiwanda Ave, Highland Ave and Church St Because of the similarities in use, layout, type, and designation, the benefits of Victoria Park Ln, Etiwanda Ave, Highland Ave and Church St are considered to be equal. Etiwanda Ave, Highland Ave and Church St border the District and are used as the main access to and from properties within the District. Victoria Park Ln serves as the main access point to each of the four schools and is the connector street running through the District. Victoria Park Ln, Etiwanda Ave, Highland Ave and Church St connect the various neighborhoods, schools and parks within the District in addition to providing circulation between the local streets and the arterial network. As such, we must also consider the neighborhoods that surround the District and are within the school district boundaries, but not within the actual District when analyzing vehicle traffic that may use the streets within the District. The City’s Traffic Study (2009) does not include the traffic volume and number of daily trips on the connector streets within the District. As such a study is unavailable at this time we have use the NHTS Pacific Division data in order to estimate the number of drivers who use the streets within the District. According to the Pacific Division data extracted from the NHTS database, of the annual 181,703 (in millions) total person trips, 152,827 (in millions) or 84.11% of those trips were made using a personal motor vehicle (FHWA, 2011). According to the 2001 National Household Travel Survey, household file, U.S. Department of Transportation (2001), the mean drivers per household is 1.75. Based on the drivers per household average, and considering the 6,957 households within the District, there are approximately 12,175 drivers within the District. There are an estimated 12,000 residential units within the school district boundaries that are not within the boundaries of the District. Based on the drivers per household average, there are approximately 21,000 additional drivers that reside outside of the District boundaries, but are in close proximity to the District. Page 280 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 34 Fiscal Year 2023/24 ATTACHMENT 2 School District Population Estimated Number of Residential Units Estimated Number of Drivers Within District Boundaries 6,957 12,175 Outside District Boundaries 12,000 21,000 Total 18,957 33,175 Applying the percentage of vehicle trips (84.11%) reported from the NHTS Pacific Division study to the District and school district boundaries area outside of the District population sets (33,175), approximately 27,903 people are within proximity of the District that utilize a private vehicle as their primary mode of transportation. Applying the 2009 NHTS vehicle trip percentage to the estimated number of drivers within the District (12,175) approximately 10,240 people within the District boundaries use a personal vehicle as their primary mode of transportation. Therefore, the total surrounding neighborhood area population, located outside of the District boundaries, that uses a vehicle as their mode of transportation is estimated to be 17,663 people. School District Population Estimated Number of Persons Within District Boundaries 10,240 Outside District Boundaries 17,663 Total Population – uses personal vehicle as primary mode of transportation 27,903 In order to obtain a better picture of the overall level of general benefit provided by the improvements, the vehicle traffic that will seek out and use the collector streets to access parcel’s within the District, but live outside of the District, must be considered. The 2009 NHTS further details the purposes of the 152,827 (in millions) reported vehicle trips. Based on the property types within the District, people utilizing the collector streets to access properties within the District would most likely do so for the following reasons: attend school, day care or religious activity, social or recreational activities, and to shop or run errands. The following details the number of vehicle trips for each of the activities that are the most likely reasons people outside of the District would use the collector streets to access properties within the District: Trip Purpose Number of Vehicle Trips (in millions) School/Daycare/Religious Activity 6,470 Shopping/Errands 30,998 Social/Recreational 16,185 Don’t know/Other 688 Total 54,341 Of the total number of vehicle trips reported, 54,341 (in millions) or 35.56% are for purposes that persons outside of the District would most likely utilize the collector streets within the District. Applying this percentage to the number of people using vehicles as their primary mode of Page 281 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 35 Fiscal Year 2023/24 ATTACHMENT 2 transportation and live outside of the District (17,663), but would use Victoria Park Ln, Etiwanda Ave, Highland Ave or Church St as a connector to their destination within the District, there are approximately 6,281 people using the maintained streets for general benefit purposes. The persons engaging in general benefit activities represents 18.93% of the total estimated drivers (33,175), and is therefore considered to be District general benefit. As previously mentioned, the local street special benefit has been estimated at 98.00% and, as such, the estimated minimum special benefit of Victoria Park Ln, Etiwanda Ave, Highland Ave and Church St should be reduced by 2.00% to account for that portion of traffic using local streets representing general benefit. Based on the above calculations, the general benefit portion of the improved aesthetics, increased safety, and economic activity benefits resulting from the street landscaping improvements on collector streets is estimated to be 20.93% and the special benefit is estimated to be 79.07%. Collector Street General Benefit 20.93% Arterial Streets: Milliken Ave, Base Line Rd, Day Creek Blvd and Rochester Ave Arterial streets are intended to provide a higher degree of mobility and generally serve longer vehicle trips. The arterial streets with landscape improvements serve not only residents in the immediate vicinity, but persons who live outside of the District and are passing by. The City’s Traffic Study (2009) does not identify the percentage of traffic on arterial streets, which is pass- through traffic. Before we determine and allocate the percentage of special and general benefit for the arterial streets, we must first compute the estimated pass-through traffic. In lieu of having a study that identifies the pass-through traffic on the arterial streets, the estimated number of special benefit trips on the collector streets has been used since in order to enter or exit the District, a vehicle must travel on one of the arterial streets listed below. Per the City’s General Plan (2010), collector streets have an estimated 5,000 to 20,000 vehicles per day, for an average of 12,500. Taking the 12,500 average daily trips for collector streets, 2,616 trips (20.93%) are for general benefit purposes, and 9,884 trips (79.07%), is deemed to be for special benefit purposes. Estimated Number of Trips Collector Street Special Benefit – 79.07%9,884 Collector Street General Benefit – 20.93%1 2,616 Total 12,500 (1) The 20.93% general benefit percentage already includes the 2.00% general benefit to account for the portion of traffic using for local streets. The City’s Traffic Study (2009) does provide an estimated number of daily trips for specific areas within the District. When the City’s Traffic Study (2009) did not provide the estimated number of daily trips the average number was derived from the estimates provided in the City’s General Plan. Page 282 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 36 Fiscal Year 2023/24 ATTACHMENT 2 Street Name Average Number of Vehicles per Day1 Milliken Ave 30,400 Base Line Rd 19,140 Day Creek Blvd 25,000 Rochester Ave 12,500 (1) Average Number of Vehicles per Day is from the City’s Traffic Study for Milliken Ave and Base Line Rd, (average based on City’s Traffic Study at points of street within the District), and from the City’s General Plan for Day Creek Blvd and Rochester Ave. Based on the estimated number of 9,884 trips for special benefit purposes, we then reduce the average number of vehicles for each arterial street, to calculate our estimated pass-through trips. The pass-through trips are vehicles driving along the maintained streets within the District for a portion of their trips, but not residing in the District or benefiting from the landscaping improvements in place. Street Name Average Number of Vehicles per Day Less: Estimated Special Benefit Trips Estimated Number of Pass Through Trips Estimated % General Benefit Milliken Ave 30,400 9,884 20,516 67.49% Base Line Rd 19,140 9,884 9,256 48.36% Day Creek Blvd 25,000 9,884 15,116 60.47% Rochester Ave 12,500 9,884 2,616 20.93% Although Rochester Ave is listed as an arterial, the City’s General Plan (2010) Roadway Hierarchy includes this street as a Tertiary Travel Corridor, which categorizes the street as more locally oriented and locally travelled. In addition, the Roadway Hierarchy says that the typical number of vehicles per day is between 10,000 and 15,000 (average 12,500). Etiwanda Avenue and Church St are also included in the category, and as such, the general benefit trip percentage is close to the same as for the collector streets. As previously mentioned, the estimated minimum special benefit of Milliken Ave, Base Line Rd, Day Creek Blvd and Rochester Ave have already been reduced by 2% to account for that portion of traffic using local streets representing general benefit. Street Landscaping General Benefit Percentage The general benefit percentages determined in the previous sections were then applied to each type of road in the District. The area in square feet of landscaping being maintained in the District was determined by the City’s Public Works Department. The general benefit percentage for each road and street type was multiplied by the total square footage being maintained for such street. The general benefit square footage was summed for all street segments and divided into the total square footage of all landscaping maintenance. The result is the overall general benefit percentage. The following table details this calculation. Page 283 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 37 Fiscal Year 2023/24 ATTACHMENT 2 Street Name Street Type (1) Total Square Footage General Benefit Percentage General Benefit Square Footage Milliken Ave Arterial 265,926 67.49%179,473 Base Line Rd Arterial 367,018 48.36%177,490 Day Creek Blvd Arterial 263,062 60.47%159,074 Rochester Ave Arterial 175,573 20.93%36,747 Church St Collector 181,344 20.93%37,955 Etiwanda Ave Collector 10,358 20.93%2,168 Highland Ave Collector 290,275 20.93%60,755 Victoria Park Ln Collector 1,348,966 20.93%282,339 Local/Minor Streets Local/Minor Streets 2,912,709 2.00%58,254 Totals:994,255 Street Landscaping General Benefit 17.10% Based on the above calculations, the general benefit portion of the improved aesthetics, increased safety, and economic activity benefits resulting from the street landscaping improvements is estimated to be 17.10% and the special benefit is estimated to be 82.90%. Neighborhood Parks The six parks within the District were installed specifically for the residents of the District. Each of the parks is considered to be a neighborhood park, intended to serve those parcels within a one-half mile radius from the park. All parcels within the District are within a one-half mile from one of the six neighborhood parks, and most parcels outside of the District have their own neighborhood parks within close proximity. Even though the park facilities were installed for the benefit of the residents and those working within the District, there will be some general benefit to those people who do not live or conduct business inside the District. There are 43.10 acres of park land within the District. According to the Trip Generation (2003) report, a City park generates an average of 1.59 trips per acre, with a range of rates between 1.04 – 8.00 (arithmetic mean is 4.52). Considering the mean rate per acre (4.52 trips), there are approximately 195 daily trips generated for parks within the District. According to the 2009 NHTS database, the average number of persons per vehicle is estimated to be 1.61 persons. Therefore, based on the 195 daily park trips generated, 314 people are using the parks within the District. There is a standard of one-half mile as a reasonable distance to walk to a park (California DOT, 1979). There are 6,957 households within the District, and an additional 1,834 households that are within a one-half mile and have direct access to the parks, but whose properties are not within the boundaries of the District. Page 284 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 38 Fiscal Year 2023/24 ATTACHMENT 2 One-Half Mile Park Population Estimated Number of Residential Units Percentage Within District Boundaries 6,957 79.14% Outside District Boundaries 1,834 20.86% Total Population 8,791 100.00% To allocate the average of park trips generated and people using the parks within the District, we allocate the 314 estimated people using the parks daily by the percentages shown above. Based on the one-half mile radius population, approximately 66 people may use the parks within the District, but living outside of the boundaries of the District. One-Half Mile Park Population Estimated Number of People Using Parks Daily Within District Boundaries 248 Outside District Boundaries 66 Total Population 314 A factor that has been considered is that most of the people living within the one-half mile radius from the parks within the District also live within a closer distance to other parks that are not within the District, and will most likely use the parks that are closer in proximity to their property. However, in calculating the general benefit usage we recognize that those people may still use the District parks. Taking the 66 persons using the parks within the District, but residing outside of the District, divided by the total population residing outside of the District, but within one-half mile from the parks (1,834), the estimated percentage of persons engaging in general benefit park activities that do not reside within the District represents 3.60%. One-Half Mile Boundary General Benefit 3.60% Given the location and size of the parks, it is very unlikely the public at large would seek out or use these smaller, local parks. Especially, when the City has larger community and regional parks that are intended to attract people from outside areas, and provide recreational opportunities beyond those supplied by the neighborhood parks. However, various sports teams are allowed access to the parks for games even though according to the City, sports teams with members residing within the District are given first priority for use of the parks. Nevertheless, it is likely that certain members of the public at large may use the smaller parks, and as such, we have assigned a 1.00% general benefit for the park improvements to the public at large. Public at large General Benefit 1.00% Page 285 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 39 Fiscal Year 2023/24 ATTACHMENT 2 Based on the above calculations, the general benefit portion of the improved aesthetics and economic activity benefits resulting from the park improvements is estimated to be 4.60% and the special benefit is estimated to be 95.40%. Park General Benefit 4.60% Collective General Benefit Since the District is comprised of improved aesthetics, increased safety and economic activity benefits resulting from a blend of improvements (sidewalks, trails, street landscaping and parks), the activity of both pedestrians and vehicles must be addressed in a collective form rather than independently. Therefore, the arithmetic mean of the general benefit percentages has been used to quantify the overall level of general benefit for the District. This general benefit result is provided in the table below: Sidewalk and Trail General Benefit 4.17% Street Landscaping General Benefit 17.10% Park General Benefit 4.60% District General Benefit 8.62% The general benefit, which is the percentage of the total budget that must be funded through sources other than assessments, is 8.62%. The special benefit then, which is the percentage of the budget that may be funded by assessments, is 91.38%. METHOD OF ASSESSMENT Overview Pursuant to the 1972 Act, Article XIII D of the California Constitution, and the Proposition 218 Omnibus Implementation Act, all parcels that receive a special benefit conferred upon them as a result of the maintenance and operation of improvements and services shall be identified, and the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entire costs of the maintenance and operation of improvements. Part 2 of Division 15 of the Streets and Highways Code, the Landscaping and Lighting Act of 1972, permits the establishment of assessment districts by local agencies for the purpose of providing certain public improvements which include the operation, maintenance and servicing of landscaping improvements. Section 22573 of the Landscape and Lighting Act of 1972 requires that maintenance assessments must be levied according to benefit rather than according to assessed value. This Section states: Page 286 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 40 Fiscal Year 2023/24 ATTACHMENT 2 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 benefit to be received by each such lot or parcel from the improvements." The determination of whether or not a lot or parcel will benefit from the improvements shall be made pursuant to the Improvement Act of 1911 (Division 7 commencing with Section 5000) [of the Streets and Highways Code, State of California]. Section 22547 of the 1972 Act also permits the designation of zones of benefit within any individual assessment district if "by reasons or variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvement". Article XIII D, Section 4(a) of the California Constitution limits the amount of any assessment to the proportional special benefit conferred on the property. Article XIII D also provides that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment. Examples of parcels exempted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements and right-of- ways, public greenbelts and public parkways. Furthermore, Proposition 218 requires the City to separate general benefits from special benefits, whereas only special benefits may be assessed. As further detailed in the following sections, the Method of Assessment uses the following components to assign special benefit to each parcel: •Benefit Points: Assignment of points for aesthetic, safety and economic special benefits. •Benefit Factor: Multiplier. For residential parcels the benefit factor is units, and for non- residential parcels the benefit factor is lot size (acreage). •Benefit Units: Sum of a parcel’s benefit points multiplied by the parcel’s benefit factor. The total amount is the special benefit units assigned to a parcel. Apportioning of Special Benefit As previously outlined, each of the parcels within the District receives a special benefit from the improvements. Each parcel that has a special benefit conferred upon it as a result of the maintenance and operation of improvements and services provided is identified and the proportionate special benefits derived by each identified parcel is determined in relationship to the entire costs of the maintenance and operation of the improvements. Page 287 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 41 Fiscal Year 2023/24 ATTACHMENT 2 The total costs of maintenance and operation, less the amount of general benefits identified, will be assessed to the parcels within the District based on the estimated benefit units assigned to each parcel. To assess special benefits appropriately, it is necessary to relate parcels of different land uses and development status to each other. The benefit unit method of apportionment uses the single-family home as the basic unit of assessment since there is a total of 5,890 single family parcels within the District which represents 90.96% of the total assessable parcels within the District. The following shows how each parcel’s benefit units have been determined. Aesthetic Benefit Points Aesthetic Benefit Points are assigned based upon the property’s proximity to the improvements as well as the property’s existing land use. All Single Family Residential parcels are located within the same proximity to the collective improvements (sidewalks, community trails, street landscaping and one-half mile from one of the parks). Each Single Family Residential parcel is fronted by sidewalk improvements, is within a one-half mile from one of the neighborhood parks, and uses the roads with street landscaping to enter and exit the District. In addition, the community trails are located throughout the District and serve as connectors between the different neighborhoods, school and shopping locations. All properties are within similar proximity to the trail improvements. Many trails are located along the sidewalks and streets, and all properties within the District have access to the trails through the various access points located throughout the entire District. The Single Family Residential parcels within the District are relatively similar in both building size and lot size. Since the improvements are provided uniformly throughout the District, Single Family Residential parcels are assigned 4.00 aesthetic benefit points, one for each of the improvement types. Multi-Family and Condominium parcels are within close proximity to the sidewalks, and receive the benefit of having maintained sidewalks for users to travel and access the property. Although these parcels benefit from the aesthetics of the sidewalks they do not receive the same benefit as Single Family Residential parcels, since Multi-Family and Condominium parcels do not have continuous sidewalk improvements along the frontage of each parcel/unit. Multi-Family and Condominium parcels are within a one-half mile of the neighborhood parks, use the roads with street landscaping to enter and exit their housing complexes within the District, and are in close proximity to the trail improvements. Accounting for the lower average household size of Multi- Family and Condominium parcels, and not having continuous sidewalk improvements directly fronting their property/unit, these properties have a reduced level of benefit from the improvements. Multi-Family and Condominium parcels are assigned 2.80 benefit points. Maintained sidewalks and street landscaping create an aesthetically pleasing environment for both employees and patrons of commercial properties. The overall aesthetics, interest and desirability of commercial properties within the District increase, as a result of the maintenance and servicing of the collective improvements. Based on the City’s Land Use Plan and residential designations of homes within the District, there is an average of six Single Family Residential properties per acre within the District (General Plan, 2010). However, given the nature of their property use type, Commercial properties do not receive the same level of benefit Page 288 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 42 Fiscal Year 2023/24 ATTACHMENT 2 from the trail and park improvements in relationship to residential land uses. Commercial properties are assigned 16.00 benefit points. A handful of parcels within the District are used to provide public services (such as fire stations, schools, churches and other similar uses) to the surrounding community, and are located based upon their proximity to the parcels they serve. These parcels benefit from the collective improvements in place, but at a reduced level compared to a Single Family Residential parcel, due to the nature of the improvements and their land use. In addition, these public service parcels are in place for the surrounding community, and the existence of well-maintained parks, street landscaping and community trails is not a significant factor in the decision to locate those facilities. Given the nature of their property use types, these public service parcels are assigned a 1.00 benefit points in recognition of the limited benefit they receive from the improvements maintained by the District. Undeveloped parcels within the District receive an aesthetic benefit from the maintenance of the collective improvements, but given the very limited activity and pedestrian access that these properties provide, properties within this land use category receive a reduced level of benefit. To account for this reduced benefit, all undeveloped properties are assigned 0.40 benefit points. Common area, roads and easements are deemed to receive no benefit from the District maintenance activities because they serve as connectors for other properties and do not receive benefit from the increased aesthetics. Utility parcels are located based on their proximity to the parcels they serve, and based upon their property usage (wireless towers, flood control basins and fire trail/access roads) do not benefit from the increased aesthetics. The following shows the aesthetic benefit points assigned to the parcel land use categories within the District: Parcel Land Use Category Aesthetic Benefit Points Single Family Residential 4.00 Condominium Residential 2.80 Multi-Family Residential 2.80 Commercial/Industrial 16.00 Public Service Parcels – Church/Fire Station/School 1.00 Undeveloped 0.40 Common Area/Roads/Easements/Utility 0.00 Page 289 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 43 Fiscal Year 2023/24 ATTACHMENT 2 Safety Benefit Points Safety Benefit Points are assigned based upon the property’s proximity to the improvements as well as the property’s existing land use. The Single Family Residential parcels within the District are relatively similar in both building size and lot size. Since the sidewalks, trails and street landscaping improvements are provided uniformly throughout the District, Single Family Residential parcels are assigned 3.00 safety benefit points, one for each of the improvement types. Based on the additional pedestrian traffic that commercial property generates compared to residential property, and that there is an average of six Single Family Residential Properties per acre within the District, Commercial parcels are assigned 18.00 benefit points. Multi-Family and Condominium parcels are within close proximity to the sidewalks, and receive the benefit of having maintained sidewalks, trails and street landscaping for users to travel and access the property. Multi-Family and Condominium parcels receive a reduced level of benefit from the safety of the sidewalks as they do not receive the same benefit as parcels that have continuous sidewalk improvements along the entire frontage of their parcel/unit. In addition, Multi-Family and Condominium parcels have a lower average household size, which results in a reduced volume of pedestrian traffic on the sidewalks and trails compared to a Single Family Residential parcel. Multi-Family and Condominium parcels are assigned 2.10 benefit points. A handful of parcels within the District are used to provide public services (such as fire stations, schools, churches and other similar uses) to the surrounding community, and are located based upon their proximity to the parcels they serve. However, based on the nature and location of the sidewalk and street landscaping improvements and public access to these properties, these parcels receive a safety benefit from the maintenance of the improvements. These public service parcels are assigned 2.00 benefit points in recognition of the benefit they receive. Well maintained green areas reduce the occurrence of crime and vandalism, and as such the maintenance of the improvements within the District create a safety benefit for the undeveloped parcels within the District. However, the safety benefit is reduced compared to a Single Family Residential parcels due to the very limited activity and pedestrian access that these properties provide. Undeveloped properties are assigned 0.30 benefit points. Common area, roads and easements are deemed to receive no benefit from the District maintenance activities because they serve as connectors for other properties and do not receive benefit from the increased aesthetics. Utility parcels are located based on their proximity to the parcels they serve, and given the nature of the property usage ((wireless towers, flood control basins and fire trail/access roads) do not benefit from the increased safety. The following shows the safety benefit points assigned to the parcel land use categories within the District: Page 290 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 44 Fiscal Year 2023/24 ATTACHMENT 2 Parcel Land Use Category Safety Benefit Points Single Family Residential 3.00 Condominium Residential 2.10 Multi-Family Residential 2.10 Commercial/Industrial 18.00 Public Service Parcels – Church/Fire Station/School 2.00 Undeveloped 0.30 Common Area/Roads/Easements/Utility 0.00 Economic Benefit Points Accounting for the existing economic activity throughout the District, as well as the potential for properties to develop, redevelop and invest in their economic presence, properties within the District are assigned benefit points for the economic activity benefits received from the uniform and maintained improvements. Economic activity benefit points are assigned based upon the property’s location to the District activities, as well as the property’s existing land use. The District’s improvements will allow properties to maximize their development, land use and occupancy rates. Residential land uses are assigned benefit points in proportion to the number of trips generated and average number of occupants per dwelling unit in comparison to the typical single-family parcel. Single Family Residential parcels are assigned 4.00 benefit points, one for each of the improvement types. Studies have consistently shown that the average multi-family residential unit impacts infrastructure approximately 80% as much as a single-family residence. Condominium parcels are assigned 3.20 benefit points since the number of trips generated per condominium unit is approximately 80% of the typical single-family residential units (Trip Generation, 2003). Multi-family residential parcels are assigned 2.40 benefit points per dwelling unit since the number of trips generated per multi-family residential unit, per the City’s Traffic Study (2009), are 60% of the typical single-family residential unit. To recognize the increase in economic activity and additional pedestrian traffic that non- residential properties generate compared to residential property, non-residential Commercial properties are assigned benefit points based on the average trip generations of non-residential property compared to a Single Family Residential property. Based on the City’s Traffic Study (2009), and given that the non-residential parcels within the District are of mixed uses, the trip generation rate for non-residential parcels averages just under 320 trips per acre, which is approximately 5.6 times per acre that of a single family residential development. The trip generation rate is reduced to account for pass-through trips which are estimated to be 20%. Therefore, the economic benefit points assigned Commercial parcels is 4.50 per one residential benefit point. Commercial properties are assigned a total of 18.00 economic benefit points. The public services parcels and utility parcels within the District are used to provide services to the surrounding community, and are located based upon their proximity to the parcels they serve. These parcels receive no economic benefit from the collective improvements in place. Therefore, they are not assigned benefit points for economic activities. Page 291 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 45 Fiscal Year 2023/24 ATTACHMENT 2 The availability of well-maintained sidewalk, landscaping and park improvements within the local community enhances the ability of owners of undeveloped parcels of land to develop those parcels, as studies have shown that there is an increase in demand for residents and businesses to locate within communities with well-maintained sidewalk, landscaping and park improvements. However, since undeveloped parcels generate fewer trips and given the limited activity these properties provide, they receive a reduced economic benefit from the maintenance of the collective improvements. To account for this reduced benefit, but still recognize development potential, all undeveloped properties are assigned 1.50 benefit points. Common areas and roads are deemed to receive no benefit from the District maintenance activities because they serve as connectors for other properties and do not receive an economic benefit. The following shows the economic benefit points assigned to the parcel land use categories within the District: Parcel Land Use Category Economic Benefit Points Single Family Residential 4.00 Condominium Residential 3.20 Multi-Family Residential 2.80 Commercial/Industrial 18.00 Public Service Parcels – Church/Fire Station/School 0.00 Undeveloped 1.50 Common Area/Roads/Utility 0.00 Total Special Benefit Points Calculation The formula below shows the total special benefit points calculation for each parcel within the District: Parcel’s Total Special Benefit Points = Parcel’s Aesthetic Benefit Points + Parcel’s Safety Benefit Points + Parcel’s Economic Benefit Points Parcel Factors The method of apportioning the benefit to the parcels within the District reflects the proportional special benefit assigned to each property within the District based upon various property characteristics of parcels as compared to other properties within the District. By adjusting the assigned special benefit points set forth above by parcel factors, a more complete picture of the proportional special benefits received by each parcel within the District is presented. Given that the special benefits provided by the District focus on aesthetic benefit, safety benefit, and economic activity benefits, it was determined that lot size (acreage) for non-residential parcels and units for residential parcels were the most appropriate parcel factors. The number of units for non-residential parcels would not accurately reflect the amount of development and Page 292 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 46 Fiscal Year 2023/24 ATTACHMENT 2 redevelopment that may occur. In addition, a larger parcel allows for a greater area to develop and redevelop than smaller parcels, which corresponds to larger parcels receiving proportionately greater aesthetic, safety and economic activity benefits when compared to smaller parcels within the District. Therefore, the benefits assigned for each parcel in the District is in direct proportion to the size of the parcel and potential development of the parcel. Residential parcels are limited by the number of units on the parcel more than the actual lot size. However, the greater the lot size, the more units can be placed on a parcel, and the more persons who use and benefits from the collective improvements. Therefore, the benefits assigned for each parcel in the District is in direct proportion to the units assigned to that parcel. The formula below shows the parcel factor calculation for each parcel within the District: Residential Parcel Factor =Units Non-Residential Parcel Factor =Acreage Total Benefit Units per Parcel Calculation To appropriately quantify and assign the total benefit units for each parcel within the District, the total special benefit points are further adjusted according to the formula below: Parcel’s Total Benefit Units = Parcel’s Total Special Benefit Points X Parcel Factor Total Special Benefit Units The total special benefit units for the District at this time are 81,554.33 Data Considerations and Parcel Changes The use of the latest Assessor’s Secured Roll information has been and shall be used in the future as the basis in determining each parcel’s land use category, units and lot size (acreage), unless better data was or is available to the City. In addition, if any parcel within the District is identified by the Auditor/Controller to be an invalid parcel number, the land use category, units and lot size (acreage) of the subsequent valid parcels shall serve as the basis in assigning parcel factor special benefit units. If a single parcel changes to multiple parcels, the special benefit units shall be recalculated based on the property type, number of units and acreage data for the new parcels, rather than each new parcel receiving a proportionate share of the original assessment. Special Considerations: Publicly Owned Parcels Any publicly owned parcels that benefit from the improvements cannot be exempt from the assessment. The special benefits accruing to these types of parcels must be determined using the same kind of formulas and benefit point assignment as applied to privately owned parcels. This requirement is clearly conveyed in Article XIII D, Section 4(a) of the California Constitution which states in part, “... Parcels within a district that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can Page 293 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 47 Fiscal Year 2023/24 ATTACHMENT 2 demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit.” Publicly owned parcels are categorized and assigned benefit units using the same methodology as privately owned parcels, based on their land use as shown on the latest County Secured Roll. Rate per Benefit Unit The assessment rate per special benefit unit is calculated by dividing the total cost estimate to be assessed by the total special benefit units assigned to the parcels in the District. The following formula provides the assessment rate per special benefit unit calculation: Rate per Benefit Unit =Total Costs to be Assessed /District’s Total Benefit Units Method of Assessment Spread The method of assessment is based upon a formula that assigns the special benefits to each parcel, with special benefit points being adjusted by the parcel’s number of units or lot size (acreage). The formula below provides a summary of the annual assessment calculation for each parcel in the District. (A) Parcel’s Total Benefit Units = (B) Parcel’s Total Special Benefit Points X (C) Parcel Factor (B) Parcel’s Total Special Benefit Points = Parcel’s Aesthetic Benefit Points + Parcel’s Safety Benefit Points + Parcel’s Economic Benefit Points Residential Parcel Factor =Units(C) Parcel Factor Non-Residential Parcel Factor =Acreage Applying the Method of Assessment Spread The maximum assessment for each parcel in the District is calculated by the following procedure: Step 1:Assign each parcel its appropriate land use category based on the most recent San Bernardino County Assessor’s Secured Roll data. Page 294 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 48 Fiscal Year 2023/24 ATTACHMENT 2 Step 2:Determine each parcel’s appropriate aesthetic benefit points based on land use. The aesthetic benefit points are shown in the following table: Parcel Land Use Category Aesthetic Benefit Points Single Family Residential 4.00 Condominium Residential 2.80 Multi-Family Residential 2.80 Commercial/Industrial 16.00 Public Service Parcels – Church/Fire Station/School 1.00 Undeveloped 0.40 Common Area/Roads/Easements/Utility 0.00 Step 3:Determine each parcel’s appropriate safety benefit points based on land use. The safety benefit points are shown in the following table: Parcel Land Use Category Safety Benefit Points Single Family Residential 3.00 Condominium Residential 2.10 Multi-Family Residential 2.10 Commercial/Industrial 18.00 Public Service Parcels – Church/Fire Station/School 2.00 Undeveloped 0.30 Common Area/Roads/Easements/Utility 0.00 Step 4:Determine each parcel’s appropriate economic benefit points based on land use. The economic benefit points are shown in the following table: Parcel Land Use Category Economic Benefit Points Single Family Residential 4.00 Condominium Residential 3.20 Multi-Family Residential 2.80 Commercial/Industrial 18.00 Public Service Parcels – Church/Fire Station/School 0.00 Undeveloped 1.50 Common Area/Roads/Utility 0.00 Page 295 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 49 Fiscal Year 2023/24 ATTACHMENT 2 Step 5: Sum the aesthetic benefit points, safety benefit points and economic benefit points for each parcel. The total benefit points are shown in the following table: Parcel Land Use Category Aesthetic Benefit Points Safety Benefit Points Economic Benefit Points Total Benefit Points Single Family Residential 4.00 3.00 4.00 11.00 Condominium Residential 2.80 2.10 3.20 8.10 Multi-Family Residential 2.80 2.10 2.80 7.70 Commercial/Industrial 16.00 18.00 18.00 52.00 Public Service Parcels – Church/ Fire Station/ School 1.00 2.00 0.00 3.00 Undeveloped 0.40 0.30 1.50 2.20 Common Area/ Roads/ Easements/ Utility 0.00 0.00 0.00 0.00 Step 6:Determine the appropriate parcel factor based on the parcel’s land use. The unit of measurement for each parcel factor, by land use, is shown in the following table: Residential Parcel Factor =Units Non-Residential Parcel Factor =Acreage Step 7:Multiply the total benefit points by parcel factor to compute each parcel’s total special benefit units. Step 8: Sum the result of Step 7 for all parcels in the District. Step 9: Separate the general benefit from the special benefit, and divide the portion of the budget representing special benefit by the result of Step 8 to compute the rate per benefit unit. Step 10: Multiply each parcel’s total benefit units by the result of Step 9 to compute each parcel’s assessment. Step 11:In future years the rate per benefit unit may be adjusted by inflation. Page 296 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 50 Fiscal Year 2023/24 ATTACHMENT 2 Proposed Maximum Assessment Rates The Fiscal Year 2023/24 maximum allowable assessment rate is calculated by dividing the net total to be assessed by the total special benefit units assigned to parcels in the District based on property type, unit and acreage data. For Fiscal Year 2023/24, the calculation is as follows: Maxim um As s es s m ent per Benefit Unit =Spec ial Benefit to be Ass ess ed /Distric t’s Total Benefit Units $52.71 = $ 4,297,424.21 /81,554.33 Parce l Land Use Cate gory T otal Be ne fit Points Parce l Factor Maximum Allowable Asse ssme nt for 2022/23 Single Fam ily Residential 11.00 Parcel 579.73$ Condom inium Residential 8.10 Unit 426.64 Multi-Fam ily Residential 7.70 Unit 405.31 Com m erc ial/Industrial 52.00 Acre 2,740.56 Public Service Parcels - Churc h/ Fire Station/ Sc hool 3.00 Acre 158.10 Undeveloped 2.20 Acre 115.44 Com m on Area/ Roads / Eas em ents / Utility 0.00 Parcel 0.00 Cost of Living Inflator Each fiscal year, beginning Fiscal Year 2014/15, the maximum allowable assessment amount may be increased by the lesser of 3% or the percentage change in the year ending February preceding the start of the Fiscal Year of the Consumer Price Index for all Urban Consumers (CPI-U), for the Riverside – San Bernardino – Ontario Consumer Price Index area. If for any reason the percentage change is negative, the maximum allowable assessment would not be decreased by reason of such negative percentage change and would remain at the amount as computed on the previous fiscal year regardless of any CPI-U adjustment. If operating costs are such that the maximum assessment amount is not needed, the City would levy only what is needed for that fiscal year. The actual assessment rate for Fiscal Year 2023/24 will increase from $518.88 to $544.82 per single-family residence, a CPI increase of 5.0% as compared to Fiscal Year 2022/23. Page 297 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 51 Fiscal Year 2023/24 ATTACHMENT 2 ASSESSMENT DIAGRAM An Assessment Diagram for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the San Bernardino County Assessor Office, at the time this report was prepared, and are incorporated by reference herein and made part of this Engineer's Report. Page 298 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 52 Fiscal Year 2023/24 ATTACHMENT 2 Page 299 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 2 – City of Rancho Cucamonga 53 Fiscal Year 2023/24 ATTACHMENT 2 ASSESSMENT ROLL AND ANNEXATIONS Assessment Roll The assessment roll is a listing of the assessment for Fiscal Year 2023/24 apportioned to each lot or parcel, as shown on the last equalized roll of the Assessor of the County of San Bernardino. The following table summarizes the Fiscal Year 2023/24 actual assessments for the District: Prope rty T ype (County Use Code ) Actual Assessment Rate Pe r EBU T otal Units/ Acre s T otal EBUs T otal Assessme nt Single Family Res idential 49.53$ 5,890.00 64,790.00 $ 3,208,989.80 Condom inium Res idential 49.53 972.00 7,873.20 389,713.68 Multi-Family Res idential 49.53 729.00 5,613.30 277,683.39 Commerc ial/ Industrial 49.53 57.97 3,014.44 149,226.05 Public Servic e Parcels – Church/Fire Station/ Sc hool 49.53 75.28 226.06 11,119.47 Undeveloped 49.53 16.97 37.33 1,842.14 T otal 7,741.22 81,554.33 $ 4,038,574.53 A copy of the full assessment roll is available for review in the City Clerk's office. Annexations There were no effective annexations for Fiscal Year 2023/24. Page 300 of 715 ATTACHMENT 3 Annual Engineer’s Report Fiscal Year 2023/24 City of Rancho Cucamonga Landscape Maintenance District No. 3B (Commercial Industrial) Page 301 of 715 CITY OF RANCHO CUCAMONGA LANDSCAPE MAINTENANCE DISTRICT NO. 3B (COMMERCIAL INDUSTRIAL) 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909.477.2700 Fax: 909.477.2845 CITY COUNCIL L. Dennis Michael, Mayor Lynne B. Kennedy, Mayor Pro Tem Ryan A. Hutchison, Council Member Kristine D. Scott, Council Member Ashley N. Stickler, Council Member CITY STAFF John R. Gillison, City Manager Elisa Cox, Assistant City Manager Jason C. Welday, Director of Engineering Services/City Engineer William Wittkopf, Public Works Director Noah Daniels, Finance Director Page 302 of 715 TABLE OF CONTENTS ENGINEER’S LETTER 1 INTRODUCTION 3 Reason for Assessment 3 Process for Annual Assessment 3 PLANS AND SPECIFICATIONS 4 Description of the Boundaries of the District 4 Description of Improvements and Services 4 Map of Improvements 8 ESTIMATE OF COSTS 10 District Budget 10 Definitions of Budget Items 12 METHOD OF ASSESSMENT 13 Overview 13 General Benefit 14 Special Benefit 14 Method of Assessment Spread 15 ASSESSMENT DIAGRAM 16 ASSESSMENT ROLL AND ANNEXATIONS 18 Assessment Roll 18 Annexations 18 Page 303 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 3B – City of Rancho Cucamonga 1 Fiscal Year 2023/24 ATTACHMENT 3 ENGINEER’S LETTER WHEREAS, on June 7, 2023, the City Council of Rancho Cucamonga (the “City”), under the Landscape and Lighting Act of 1972 (the “1972 Act”) adopted its Resolution No. 2023-055, a Resolution Initiating Proceedings for the Levy of Annual Assessments for Landscape Maintenance District No. 3B (Commercial Industrial) (the “District”); and WHEREAS, the Resolution Initiating Proceedings directed staff to prepare and file an Annual Engineer’s Report for Fiscal Year 2023/24 pursuant to the requirements of the 1972 Act. The Annual Engineer’s Report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the maintenance, operations and servicing of the improvements for the District for the referenced fiscal year, a diagram for the District showing the area and properties proposed to be assessed, and an assessment of the estimated costs of the maintenance, operations and servicing of the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received; and NOW THEREFORE, the following assessment is proposed to be authorized in order to pay the estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the boundaries of the District in proportion to the special benefit received. The following table summarizes the proposed assessment. Fiscal Year 2023/24 Budget Expe nditure s Pers onnel Servic es 166,190$ O perations and Maintenanc e 960,350 T otal Expe nditure s Budge t 1,126,540 Re v e nue s Taxes: Estimated Ass es sm ents, Net of Es tim ated Delinquenc ies 838,460 Anticipated Prior Year Delinquenc ies Collection 9,610 Subtotal - Taxes 848,070 O ther Revenues 126,930 T otal Re v e nue s Budge t 975,000 Contribution to/(Use of) Fund Balance (151,540)$ Total Dis tric t EBU Count 2,970.72 Ac tual As ses s ment per EBU 282.24$ Maxim um Allowable As s em ent per EBU 352.80$ Page 304 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 3B – City of Rancho Cucamonga 2 Fiscal Year 2023/24 ATTACHMENT 3 In making the assessments contained herein pursuant to the 1972 Act: 1. I have identified all parcels which will have a special benefit conferred upon them from the improvement described in the Special Benefit Section of this Annual Engineer’s Report (the “Specially Benefited Parcels”). For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is included in this Annual Engineer’s Report. 2. I have evaluated the costs and expenses of the improvements upon the Specially Benefited Parcels. In making such evaluation: a. The proportionate special benefit derived by each Specially Benefited Parcel from the improvements was determined in relationship to the entirety of the maintenance costs of the improvements; b. No assessment has been imposed on any Specially Benefited Parcel which exceeds the reasonable cost of the proportional special benefit conferred on such parcel from the improvements; and c. Any general benefits from the improvements have been separated from the special benefits and only special benefits have been assessed. I, the undersigned, respectfully submit the enclosed Annual Engineer’s Report and, to the best of my knowledge, information and belief, I certify that the Annual Engineer’s Report and Assessment Diagram included herein have been prepared and computed in accordance with the order of the City Council of the City of Rancho Cucamonga and the Assessment Law. Jason C. Welday Director of Engineering Services/City Engineer Page 305 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 3B – City of Rancho Cucamonga 3 Fiscal Year 2023/24 ATTACHMENT 3 INTRODUCTION Reason for Assessment Approval of the assessment covered by this Engineer’s Report will generate the revenue necessary to: Provide for the maintenance and servicing of the improvements described in this Engineer’s Report. Maintenance may include but is not limited to, all of the following: the upkeep, repair, removal or replacement of all or any part of any improvement or facility such as paseos, community trails, fencing and irrigation systems, and providing for the growth, vigor and care of the trees and landscape plant materials. Servicing means the furnishing of electricity, gas or other illuminating energy for the lighting of landscape or appurtenant facilities. This shall also include material, vehicle, equipment, capital improvements and administrative costs associated with the annual administration and operation of the District. Process for Annual Assessment The City cannot levy and collect annual assessments within the District without complying with the procedures specified in the 1972 Act. On an annual basis, an Engineer’s Report must be prepared which contains a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. The City Council must also adopt a resolution of intention which: •Declares the intention of the City Council to levy and collect assessments within the District for the fiscal year stated therein. •Generally, describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements. •Refers to the District by its distinctive designation and indicate the general location of the District. •Refers to the Engineer’s Report, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. •Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment. •States whether the assessment is proposed to increase from the previous year. If the assessments are to be levied in the same or lesser amounts than the maximum assessment amount approved, the City Clerk shall give notice by causing the resolution of intention to be published. Any interested person may, prior to the conclusion of the public hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. During the course or upon Page 306 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 3B – City of Rancho Cucamonga 4 Fiscal Year 2023/24 ATTACHMENT 3 conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including the improvements, to the zones within the District, and the proposed diagram or the proposed assessment. The City Council, upon conclusion of the public hearing must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the assessment. If the assessment to be levied exceeds the maximum assessment amount previously approved, the City must comply with the procedures specified in Article XIII D and Proposition 218. The voters in the State of California in November 1996 added Article XIII D to the California Constitution imposing, among other requirements, the necessity for the City to conduct an assessment ballot procedure to enable the owners of each property on which assessments are proposed to be enacted or increased, the opportunity to express their support for, or opposition to the proposed assessment or increase in such assessment. PLANS AND SPECIFICATIONS The District provides for the administration, maintenance, operations, and servicing of various improvements located within the public right-of-way and dedicated easements within the boundaries of the District. Description of the Boundaries of the District The District is located in the City of Rancho Cucamonga, State of California. The boundaries of the District are generally described as the commercial and industrial area of the City which is generally bounded by Foothill Blvd on the north, 4th St on the South, East Ave on the east and Grove Ave on the west. Reference is also made to the Assessment Diagram included in this Report. Description of Improvements and Services These improvements are located within the street right-of-ways, Metrolink, and dedicated public easements which are within the boundaries of the District. The landscaping maintenance includes, but is not limited to, the pruning, fertilizing, mowing, weeding, pest control, removal of trash/debris, and irrigation of the trees, shrubs, vines, ground cover, and turf. Maintenance of associated improvements and facilities, such as community trails, fencing and irrigation systems, includes but is not limited to, grading and replacement of trail surfacing, trail fence repair and replacement, steel fence painting, repair and replacement, and irrigation systems control, adjustment, trouble-shooting, repair and replacement. Services include personnel, materials, contracting services, utilities, capital projects and all necessary costs associated with the maintenance, replacement and repair required to keep the improvements in a healthy, vigorous and satisfactory condition. In addition, it is the City's intention to continue to use cost effective Page 307 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 3B – City of Rancho Cucamonga 5 Fiscal Year 2023/24 ATTACHMENT 3 materials, including the future ability to replace landscaping with drought resistant or low water use plants, in order to lower expenses of the District. The breakdown of maintained areas is as follows: Site #Descriptive Location J-2 The monument at the northeast corner of Haven Ave and 4th St. Ground Cover area:5,715 square feet Hardscape area:6,068 square feet J-3 The 6th St median from Milliken Ave to Pittsburg Ave. Ground Cover area:3,300 square feet J-4 The entry monuments on the east and west side of 4th St and Milliken Ave. The Milliken Ave median from 4th St to 6th St. Ground Cover area:30,594 square feet Hardscape area: 1,748 square feet J-5 The Milliken Ave median from Arrow Rte to Jersey Blvd. Ground Cover area:10,220 square feet J-6 The Spruce Ave median from Foothill Blvd to White Oak Ave. Ground Cover area:4,300 square feet J-7 The 6th St median from Pittsburg Ave to Richmond Pl. Ground Cover area:5,114 square feet J-8 The 6th St from Richmond Pl to Buffalo Ave. Ground Cover area:2,476 square feet J-9 The Milliken Ave railroad underpass. Ground Cover area:165,633 square feet, J-10 The 6th St median from Cleveland Ave to 1,820 feet east of Cleveland Ave. Ground Cover area:15,884 square feet J-11 The 6th St median from Buffalo Ave to Rochester Ave. Ground Cover area:10,789 square feet J-12 The Milliken Ave median from Arrow Rte to Century Ct. Ground Cover area:13,855 square feet Page 308 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 3B – City of Rancho Cucamonga 6 Fiscal Year 2023/24 ATTACHMENT 3 J-13 The Milliken Ave median from Century Ct to Foothill Blvd. Ground Cover area:3,330 square feet J-14 The 6th St median from Utica Ave to Cleveland Ave. Ground Cover area:8,559 square feet J-15 The 6th St median from Haven Ave to Utica Ave. Ground Cover area:7,680 square feet J-16 Day Creek Blvd median from Church St to Foothill Blvd. Ground Cover area:8,466 square feet J-17 The Day Creek Blvd median south of Foothill Blvd including the traffic circle. Ground Cover area:6,490 square feet H-1 The Haven Ave median from 4th St to 6th St. Ground Cover area:21,205 square feet Converted 8,935 sq. ft. of turf to ground cover effective April 1, 2013. H-2 The Haven Ave medians from 6th St to the underpass bridge. The east and west side parkways and slopes on Haven Ave from Acacia St to underpass bridge. Ground Cover area:54,720 square feet Converted 2,960 square feet of turf to ground cover effective April 1, 2013. H-3 The Haven Ave medians from underpass bridge to Arrow Rte. The east and west side parkways and slopes on Haven Ave from the underpass bridge to Jersey Blvd. Ground Cover area:56,210 square feet H-4 The Haven Ave median from Arrow Rte to Foothill Blvd. Ground Cover area:15,156 square feet H-5 The Haven Ave median from Foothill Blvd to Church St. Ground Cover area:11,502 square feet FH-1 The Foothill Blvd median from Spruce Ave to Haven Ave. Ground Cover area:4,571 square feet The total square footage for the improvement is 9,141; however, due to the location of the improvement the other half is maintained by landscape maintenance district 4-R. Page 309 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 3B – City of Rancho Cucamonga 7 Fiscal Year 2023/24 ATTACHMENT 3 FH-2 The Foothill Blvd median from Spruce Ave to Milliken Ave. Ground Cover area:7,940 square feet The total square footage for the improvement is 15,879; however, due to the location of the improvement the other half is maintained by landscape maintenance district 4-R. FH-3 The Foothill Blvd median from 790 feet west of Market Pl to Market Pl. Ground Cover area:4,434 square feet FH-4 The Foothill Blvd median from Market Pl to Etiwanda Ave. Ground Cover area:10,392 square feet FH-5 The Foothill Blvd median from 360 feet west of Masi Dr to 516 feet west of Masi Dr. Ground Cover area:800 square feet The total square footage for the improvement is 1,600; however, due to the location of the improvement the other half is maintained by landscape maintenance district 4-R. FH-6 The Foothill Blvd median from Masi Dr Plaza to Rochester Ave. Ground Cover area:800 square feet The total square footage for the improvement is 1,600; however, due to the location of the improvement the other half is maintained by landscape maintenance district 4-R. FH-7 The Foothill Blvd median from Vineyard Ave to Orchard Plaza. Ground Cover area:2,605 square feet FH-8 The Foothill Blvd median from Orchard Plaza to Lion St. Ground Cover area:344 square feet FH-9 The Foothill Blvd median from Hellman Ave to Malachite Ave and from Malachite Ave to Archibald Ave. Ground Cover area:21,474 square feet FH-10 The Foothill Blvd median from Archibald Ave to Ramona Ave. Ground Cover area:4,770 square feet FH-11 The Foothill Blvd median from Ramona Ave to Hermosa Ave. Ground Cover area:5,210 square feet FH-12 The Foothill Blvd median from Hermosa Ave to Center Ave. Ground Cover area:6,329 square feet FH-13 The Foothill Blvd median from Center Ave to Haven Ave. Ground Cover area:6,286 square feet Page 310 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 3B – City of Rancho Cucamonga 8 Fiscal Year 2023/24 ATTACHMENT 3 FH-14 The Foothill Blvd median from Rochester Ave to 600 feet east of Rochester Ave. Ground Cover area:1,356 square feet Site reduced to 5,979 square feet due to median renovation. FH-15 The Foothill Blvd median from 1,225 feet west of Day Creek Blvd to Day Creek Blvd. Ground Cover area:4,905 square feet FH-16 The Foothill Blvd median from Day Creek Blvd to the 15 freeway. Ground Cover area:9,808 square feet Map of Improvements The following page shows the map of landscaping improvements, including irrigation sites and community trails, to be maintained using District funds. Page 311 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 3B – City of Rancho Cucamonga 9 Fiscal Year 2023/24 ATTACHMENT 3 Page 312 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 3B – City of Rancho Cucamonga 10 Fiscal Year 2023/24 ATTACHMENT 3 ESTIMATE OF COSTS The estimated costs of administration, maintenance, operations, and servicing the improvements as described in the Plans and Specifications are summarized below. Each year, as part of the District levy calculation process, the costs and expenses are reviewed and the annual costs are projected for the following fiscal year. District Budget Fis c al Year 2023/24 Budget Expe nditure s Pe rsonne l Se rv ice s: Regular Salaries 107,960$ Overtim e Salaries 3,500 Part-tim e Salaries 880 Fringe Benefits 53,850 Subtotal - Pe rsonne l 166,190 Ope rations and M ainte nance : Operations and Maintenance: Com puter Software 500 O & M/General 19,300 O & M/Facilities 12,080 Subtotal - Operations and Maintenance 31,880 Contrac t Servic es: Contrac t Servic es/General 458,750 Contrac t Servic es/Facilities 208,760 Tree Maintenance 34,480 Subtotal - Contrac t Servic es 701,990 Utilities : W ater Utilities 134,440 Electric Utilities 33,570 Subtotal - Utilities 168,010 As s ess ment Adm inis tration 4,460 Admin./General Overhead 54,010 Subtotal - Ope rations and Mainte nance 960,350 T otal Expe nditure s Budge t 1,126,540$ Page 313 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 3B – City of Rancho Cucamonga 11 Fiscal Year 2023/24 ATTACHMENT 3 Fis c al Year 2023/24 Budget Re v e nue s T axe s: Estimated Ass es sm ents , Net of Es tim ated Delinquencies 838,460$ Anticipated Prior Year Delinquencies Collection 9,610 Subtotal - T axe s 848,070 Othe r Re v e nue s: Interest Earnings 46,830 Parking Perm its 80,000 Other Revenue 100 Subtotal - Othe r Re v e nue s:126,930 T otal Re v e nue s Budge t 975,000 Contribution to/(Use of) Fund Balance (151,540)$ Total Gross Es tim ated Asses s m ents 838,455.90$ Total Dis tric t EBU Count 2,970.72 Ac tual As s es s ment per EBU - Fis c al Year 2023/24 282.24$ Maximum Allowable Ass es sm ent per EBU - Fis cal Year 2023/24 352.80$ The maximum allowable assessment per Equivalent Benefit Unit (EBU) listed in the District budget above, is the amount which was approved in Fiscal Year 1996/97 and subsequent District annexations. Each year, prior to the assessments being placed on the tax roll, the City will review the budget and determine the amount needed to maintain the improvements for the upcoming fiscal year. The actual assessment per EBU will be based on the estimated costs of maintenance, available fund balance and maximum allowable assessment with the goal of maintaining the improvements in a satisfactory and healthy condition. The actual assessment amount may be lower than the maximum allowable assessment; however, it may not exceed the maximum unless the increase is approved by the property owners in accordance with Proposition 218. It is the intent of the City to maintain an Operating Reserve which shall not exceed the estimated costs of maintenance and servicing of the improvements prior to December 10 of the fiscal year, or when the City expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. The reserve balance information for the District is as follows: Operating Reserve Estimated Res erve Fund Balanc e, June 30, 2023 2,267,556$ Contribution to/(Use of) Res erve - Fis c al Year 2023/24 (151,540) Estimated Res erve Fund Balanc e, June 30, 2024 2,116,016$ Page 314 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 3B – City of Rancho Cucamonga 12 Fiscal Year 2023/24 ATTACHMENT 3 Definitions of Budget Items The following definitions describe the costs and expenses included in the District Budget: Personnel Services: This item includes the costs attributed to the salaries of all full-time and part-time employees dedicated to maintenance of the District improvements. Additionally, this includes benefits available to City employees. Operations and Maintenance: This item includes the costs of City staff to perform maintenance duties within the boundaries of the District. Contract Services: This item includes the contract costs of a landscape maintenance company responsible for the ongoing maintenance of the District improvements. Utilities: This item includes the costs to furnish electricity, water, and telephone services, as required, for the operation and maintenance of the sprinklers and irrigation controllers in the District. Assessment Administration: This item includes the cost of all particular departments and staff of the City, as well as consultants, for providing the administration, coordination and management of District services, operations, and incidental expenses related to the District. This item also includes creation of an annual Engineer's Report, resolutions and placing the assessment amounts onto the County tax roll each year, along with responding to any public inquiries and future Proposition 218 balloting proceedings. General Overhead: This item includes the costs of all central services departments of the City for providing the coordination of District services, inspections, annual bid management, responding to public concerns, public education, accounting, auditing and procedural matters associated with the District. This item also includes an allocation for general City staff time for administrative functions and systems that provide for a functional and operational District within the City's administrative structure. Capital Outlay: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include new monuments, irrigation systems, and other large improvements. Other Revenues: This includes other revenues that are not levied through the annual assessments that support the District operations. These other revenues may include: interest earnings, other rental/lease income (cell site tower leases), Park Maintenance Fees, Sports Field User Group Rentals, and parking permits (Metrolink Station paid parking). Page 315 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 3B – City of Rancho Cucamonga 13 Fiscal Year 2023/24 ATTACHMENT 3 METHOD OF ASSESSMENT Overview Pursuant to the 1972 Act and Article XIII D, all parcels that have a special benefit conferred upon them as a result of the maintenance and operation of improvements and services shall be identified, and the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entire costs of the maintenance and operation of improvements. The 1972 Act, permits the establishment of assessment districts for the purpose of providing certain public improvements which include the operation, maintenance and servicing of landscaping improvements. Section 22573 of the 1972 Act requires that maintenance assessments must be levied according to benefit rather than according to assessed value. This Section states: The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefit to be received by each such lot or parcel from the improvements. The determination of whether or not a lot or parcel will benefit from the improvements shall be made pursuant to the Improvement Act of 1911 (Division 7 commencing with Section 5000) [of the Streets and Highways Code, State of California]. Section 22547 of the 1972 Act also permits the designation of zones of benefit within any individual assessment district if "by reasons or variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvement". Article XIII D, Section 4(a) of the California Constitution limits the amount of any assessment to the proportional special benefit conferred on the property. Article XIIID also provides that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment. Exempted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements and rights-of-ways, public greenbelts and public parkways. The net amount to be assessed may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels. Proposition 218, approved by the voters in November 1996, requires the City to separate general benefit from special benefit, where only special benefit is assessed. Page 316 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 3B – City of Rancho Cucamonga 14 Fiscal Year 2023/24 ATTACHMENT 3 General Benefit Section 4 of Article XIII D of the California Constitution provides that once a local agency which proposes to impose assessments on property has identified those parcels that will have special benefits conferred upon them and upon which an assessment will be imposed, the local agency must next "separate the general benefits from the special benefits conferred," and only the special benefits can be included in the amount of the assessments imposed. In this District, the improvements being financed consists of the maintenance of local improvements located within the boundaries of the District and include paseos, street trees, landscaped areas and appurtenant facilities that are located throughout the District and were installed to create a common landscape theme and neighborhood identity for parcels within the District. The improvements are situated within the public rights-of-way of the internal local street network within the District which provides ingress and egress for parcels within the District to access the City’s system of arterial streets. Traffic from parcels not within the District do not use the internal local street network or paseos except for the express purpose of accessing properties located within the District, and therefore do not benefit from the improvements. Only parcels which are within the District and proximate to the improvements and within the District are being assessed. Accordingly, there is a direct physical and visual nexus between each parcel being assessed and the improvements to be funded by the assessment that does not exist for parcels outside of the District boundary and that is particular and distinct from that shared by the public at large. Under these circumstances, all of the benefits conferred are direct and local in nature, and provide a benefit to only those parcels located within the boundaries of the District. Based upon this, it has been determined that there is no quantifiable general benefit to the surrounding community and the public in general from the maintenance of the improvements within the boundaries of the District, and therefore no portion of the project costs should be attributed to general benefit. Special Benefit The maintenance and servicing of the improvements within the District (which are described in the Description of Improvements and Services Section of this report) are for the benefit of the properties within the District and, as such, confer a special and direct benefit to parcels within the District by: •improving the livability, appearance, and desirability for properties within the boundaries of the District, and •ensuring that improvements do not reach a state of deterioration or disrepair so as to be materially detrimental to properties within the District, and •providing beautification, shade and overall enhancement to properties within the District. The above mentioned items affect the assessed property in a way that is particular and distinct from their effect on other parcels and that real property in general and the public at large do not Page 317 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 3B – City of Rancho Cucamonga 15 Fiscal Year 2023/24 ATTACHMENT 3 share. They contribute to a specific enhancement of the properties within the District. Since these improvements, including the community trails, were installed and are maintained specifically for the properties within the District, only properties within the District receive a special benefit and are assessed for said maintenance. Method of Assessment Spread Each of the parcels within the District is deemed to receive special benefit from the improvements. Each parcel that has a special benefit conferred upon it as a result of the maintenance and operation of improvements is identified and the proportionate special benefit derived by each identified parcel is determined in relationship to the entire costs of the maintenance and operation of the improvements. When the District was formed, Article XIII D and Proposition 218 had not yet been passed. Upon the passage of Article XIII D and the subsequent passage of the Proposition Omnibus Implementation Act, new rules were put into place. Due to the changes in legal requirements, as property annexed to the District after the passage of the Assessment Law, the description of the method of assessment became more refined, however, the assessment per parcel has remained the same since Fiscal Year 1996/97. Further, no parcel included in the District formation or annexations prior to when the language was refined are now being levied differently than they were at the time the District was formed or the parcels were annexed. To assess special benefit appropriately, it is necessary to relate the different type of parcel improvements to each other. The EBU method of apportionment uses the single-family home as the basic unit of assessment. A single-family home equals one EBU. Every other land-use is converted to EBUs based on an assessment formula that equates to the property's specific development status, type of development (land-use), and size of the property, as compared to a single-family home. The following table provides the weighting factors applied to various land-use types, as assigned by County use code, to determine each parcel's EBU assignment. Land-Use Equivalent Dwelling Units Prope rty T ype (County Use Code )EBU Value M ultiplie r Non-Res idential 1.00 Acre The use of the latest County Assessor's Secured Roll shall be the basis for the Property Type determination and units/acreage assignments, unless better data is available to the City. In addition, if any parcel within the District is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, the Property Type and EBU assignment shall be based on the correct parcel number and/or new parcel number(s) County use code and subsequent property information. If a single parcel has changed to multiple parcels, the EBU Page 318 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 3B – City of Rancho Cucamonga 16 Fiscal Year 2023/24 ATTACHMENT 3 assignment and assessment amount applied to each of the new parcels will be recalculated rather than spread the proportionate share of the original assessment. The following table summarizes the Fiscal Year 2023/24 maximum allowable assessment rates for the District: Prope rty T ype (County Use Code ) Maximum Allowable Assessment Rate pe r EBU Actual Ase ssment Rate pe r EBU T otal Units/Acre s T otal EBUs Non-Res idential $352.80 $282.24 2,970.72 2,970.72 The total amount of maintenance and incidental costs for maintaining the landscaping and community trail improvements is assessed to the individual parcels of real property within the District in proportion to the special benefit received by such parcels of real property. The proposed individual assessments are shown on the assessment roll in this report. ASSESSMENT DIAGRAM An Assessment Diagram for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the San Bernardino County Assessor Office, at the time this report was prepared, and are incorporated by reference herein and made part of this Engineer's Report. Page 319 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 3B – City of Rancho Cucamonga 17 Fiscal Year 2023/24 ATTACHMENT 3 Page 320 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 3B – City of Rancho Cucamonga 18 Fiscal Year 2023/24 ATTACHMENT 3 ASSESSMENT ROLL AND ANNEXATIONS Assessment Roll The assessment roll is a listing of the assessment for Fiscal Year 2023/24 apportioned to each lot or parcel, as shown on the last equalized roll of the Assessor of the County of San Bernardino. The following table summarizes the Fiscal Year 2023/24 actual assessment for the District: Prope rty T ype (County Use Code ) Actual Asse ssme nt Rate per EBU T otal Units/Acre s T otal EBUs T otal Assessme nt Non-Residential $282.24 2,970.72 2,970.72 $838,455.90 T otals 2,970.72 2,970.72 $838,455.90 A copy of the full assessment roll is available for review in the City Clerk's office. Annexations The following annexations are effective for Fiscal Year 2023/24: ` Anne xation Date Project Name T otal Units/ Acres T otal EBUs Prope rty Type 0209-032-35 05/04/22 SUBTPM20164 2.32 2.32 Commercial/Industrial 0229-171-28 11/16/22 DRC2018-00946 1.55 1.55 Commercial/Industrial 0229-032-57 12/07/22 DRC2018-00594 0.79 0.79 Commercial/Industrial 0229-171-02 12/07/22 DRC2019-05590 4.76 4.76 Commercial/Industrial Page 321 of 715 ATTACHMENT 4 Annual Engineer’s Report Fiscal Year 2023/24 City of Rancho Cucamonga Landscape Maintenance District No. 4-R (Terra Vista Planned Community) Page 322 of 715 CITY OF RANCHO CUCAMONGA LANDSCAPE MAINTENANCE DISTRICT NO. 4-R (TERRA VISTA PLANNED COMMUNITY) 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909.477.2700 Fax: 909.477.2845 CITY COUNCIL L. Dennis Michael, Mayor Lynne B. Kennedy, Mayor Pro Tem Ryan A. Hutchison, Council Member Kristine D. Scott, Council Member Ashley N. Stickler, Council Member CITY STAFF John R. Gillison, City Manager Elisa Cox, Assistant City Manager Jason C. Welday, Director of Engineering Services/City Engineer William Wittkopf, Public Works Director Noah Daniels, Finance Director Page 323 of 715 TABLE OF CONTENTS ENGINEER’S LETTER 1 INTRODUCTION 3 Reason for Assessment 3 Process for Annual Assessment 3 PLANS AND SPECIFICATIONS 4 Description of the Boundaries of the District 4 Description of Improvements and Services 4 Map of Improvements 13 ESTIMATE OF COSTS 15 District Budget 15 Definitions of Budget Items 17 METHOD OF ASSESSMENT 18 Overview 18 General Benefit 19 Special Benefit 19 Method of Assessment Spread 20 Cost of Living Inflator 22 ASSESSMENT DIAGRAM 23 ASSESSMENT ROLL AND ANNEXATIONS 25 Assessment Roll 25 Annexations 25 Page 324 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 4-R – City of Rancho Cucamonga 1 Fiscal Year 2023/24 ATTACHMENT 4 ENGINEER’S LETTER WHEREAS, on June 7, 2023, the City Council of Rancho Cucamonga (the “City”), under the Landscape and Lighting Act of 1972 (the “1972 Act”) adopted its Resolution No. 2023-055, a Resolution Initiating Proceedings for the Levy of Annual Assessments for Landscape Maintenance District No. 4-R (Terra Vista Planned Community) (the “District”); and WHEREAS, the Resolution Initiating Proceedings directed staff to prepare and file an Annual Engineer’s Report for Fiscal Year 2023/24 pursuant to the requirements of the 1972 Act. The Annual Engineer’s Report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the maintenance, operations and servicing of the improvements for the District for the referenced fiscal year, a diagram for the District showing the area and properties proposed to be assessed, and an assessment of the estimated costs of the maintenance, operations and servicing of the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received; and NOW THEREFORE, the following assessment is proposed to be authorized in order to pay the estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the boundaries of the District in proportion to the special benefit received. The following table summarizes the proposed assessment. Fisc al Year 2023/24 Budget Expe nditure s Personnel Servic es 1,178,120$ Operations and Maintenanc e 1,828,460 Capital Expenditures 1,781,750 T otal Expe nditure s Budge t 4,788,330 Re v e nue s Taxes: Es timated Ass es sm ents , Net of Es tim ated Delinquenc ies 2,940,050 Anticipated Prior Year Delinquencies Collection 10,750 Subtotal - Taxes 2,950,800 Other Revenues 124,710 T otal Re v e nue s Budge t 3,075,510 Contribution to/(Use of) Fund Balance (1,712,820)$ Total Dis tric t EBU Count 7,050.26 Ac tual As s es s ment per EBU 417.01$ Maximum Allowable Ass ement per EBU 516.80$ Page 325 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 4-R – City of Rancho Cucamonga 2 Fiscal Year 2023/24 ATTACHMENT 4 In making the assessments contained herein pursuant to the 1972 Act: 1. I have identified all parcels which will have a special benefit conferred upon them from the improvement described in the Special Benefit Section of this Annual Engineer’s Report (the “Specially Benefited Parcels”). For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is included in this Annual Engineer’s Report. 2. I have evaluated the costs and expenses of the improvements upon the Specially Benefited Parcels. In making such evaluation: a. The proportionate special benefit derived by each Specially Benefited Parcel from the improvements was determined in relationship to the entirety of the maintenance costs of the improvements; b. No assessment has been imposed on any Specially Benefited Parcel which exceeds the reasonable cost of the proportional special benefit conferred on such parcel from the improvements; and c. Any general benefits from the improvements have been separated from the special benefits and only special benefits have been assessed. I, the undersigned, respectfully submit the enclosed Annual Engineer’s Report and, to the best of my knowledge, information and belief, I certify that the Annual Engineer’s Report and Assessment Diagram included herein have been prepared and computed in accordance with the order of the City Council of the City of Rancho Cucamonga and the Assessment Law. Jason C. Welday Director of Engineering Services/City Engineer Page 326 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 4-R – City of Rancho Cucamonga 3 Fiscal Year 2023/24 ATTACHMENT 4 INTRODUCTION Reason for Assessment Approval of the assessment covered by this Engineer’s Report will generate the revenue necessary to: Provide for the maintenance and servicing of the improvements described in this Engineer’s Report. Maintenance may include but is not limited to, all of the following: the upkeep, repair, removal or replacement of all or any part of any improvement or facility such as paseos, community trails, fencing and irrigation systems, and providing for the growth, vigor and care of the trees and landscape plant materials. Servicing means the furnishing of electricity, gas or other illuminating energy for the lighting of landscape or appurtenant facilities. This shall also include material, vehicle, equipment, capital improvements and administrative costs associated with the annual administration and operation of the District. Process for Annual Assessment The City cannot levy and collect annual assessments within the District without complying with the procedures specified in the 1972 Act. On an annual basis, an Engineer’s Report must be prepared which contains a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. The City Council must also adopt a resolution of intention which: •Declares the intention of the City Council to levy and collect assessments within the District for the fiscal year stated therein. •Generally, describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements. •Refers to the District by its distinctive designation and indicate the general location of the District. •Refers to the Engineer’s Report, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. •Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment. •States whether the assessment is proposed to increase from the previous year. If the assessments are to be levied in the same or lesser amounts than the maximum assessment amount approved, the City Clerk shall give notice by causing the resolution of intention to be published. Any interested person may, prior to the conclusion of the public hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. During the course or upon Page 327 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 4-R – City of Rancho Cucamonga 4 Fiscal Year 2023/24 ATTACHMENT 4 conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including the improvements, to the zones within the District, and the proposed diagram or the proposed assessment. The City Council, upon conclusion of the public hearing must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the assessment. If the assessment to be levied exceeds the maximum assessment amount previously approved, the City must comply with the procedures specified in Article XIII D and Proposition 218. The voters in the State of California in November 1996 added Article XIII D to the California Constitution imposing, among other requirements, the necessity for the City to conduct an assessment ballot procedure to enable the owners of each property on which assessments are proposed to be enacted or increased, the opportunity to express their support for, or opposition to the proposed assessment or increase in such assessment. PLANS AND SPECIFICATIONS The District provides for the administration, maintenance, operations, and servicing of various improvements located within the public right-of-way and dedicated easements within the boundaries of the District. Description of the Boundaries of the District The District is located in the City of Rancho Cucamonga, State of California. The boundaries of the District are generally described as that area located north of Foothill Blvd, west of Rochester Ave, east of Haven Ave, south of Base Line Rd and includes the northeast corner of Base Line Rd and Haven Ave. Reference is also made to the Assessment Diagram included in this Report. Description of Improvements and Services The improvements are the maintenance and servicing of the paseos, parkways, median islands, street trees, parks, landscaped sites and appurtenant facilities that are throughout the District. These improvements are located within the street right-of-ways and dedicated public easements which are within the boundaries of the District. The landscaping maintenance includes, but is not limited to, the pruning, fertilizing, mowing, weeding, pest control, removal of trash/debris, and irrigation of the trees, shrubs, vines, ground cover, and turf. Maintenance of associated improvements and facilities, such as community trails, fencing and irrigation systems, includes but is not limited to, grading and replacement of trail surfacing, trail fence repair and replacement, steel fence painting, repair and replacement, and irrigation systems control, adjustment, trouble- shooting, repair and replacement. Services include personnel, materials, contracting services, utilities, capital projects and all necessary costs associated with the maintenance, replacement Page 328 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 4-R – City of Rancho Cucamonga 5 Fiscal Year 2023/24 ATTACHMENT 4 and repair required to keep the improvements in a healthy, vigorous and satisfactory condition. In addition, it is the City's intention to continue to use cost effective materials, including the future ability to replace landscaping with drought resistant or low water use plants, in order to lower expenses of the District. The breakdown of maintained areas is as follows: Parks: Spruce Park, Mountain View Park, Ralph M. Lewis Park, Coyote Canyon Park, Milliken Park and West Greenway Park The street trees within the residential parkways and tree maintenance easements to be maintained by the District are on the following streets, located within the boundaries of the District: Amiata Dr Bastia Ct Blackhorse Ct Brandywine Pl Bunker Hill Dr Cedarbrook Pl Chesterton Dr Clarisa Pl Corsica Ct (Country View Dr to Milliken Ave) Country View Dr (Mountain View Dr to Palacio Ct) Covington Pl Danbury Dr Danner Ct De Anza Dr Derby Pl Downing Ct Ellena East & West (s/o Terra Vista Pkwy to Fitzpatrick Dr) Emery Pl Fitzpatrick Dr Fulbourn Ct Hinton Ct Linaro Rd Meyers Dr Potomac Ct Radcliff Pl Regent Dr Rockingham Ct Saranza Pl Southhampton Ct Terra Vista Pkwy (Church St to Brandywine Pl) Wellington Pl Yorktown Ct The breakdown of maintained areas is as follows: Site #Descriptive Location TV-1 The monument on the southeast corner of Haven Ave and Base Line Rd. The Base Line Rd median from Haven Ave to the Deer Creek Channel. The south side of Base Line from Haven to Deer Creek Channel less from the frontage of the condominium complex. Ground Cover area:22,054 square feet Hardscape area:10,630 square feet TV-2 The Base Line Rd median from Spruce Ave to the Deer Creek Channel. The south side of Base Line Rd from Deer Creek Channel to Spruce Ave. The west side of Spruce Ave from Base Line Rd to Terra Vista Pkwy. The north side of Spyglass Dr from Spruce Ave to Roxbury Pl. Ground Cover area:18,863 square feet Turf area:15,067 square feet Hardscape area:12,575 square feet Page 329 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 4-R – City of Rancho Cucamonga 6 Fiscal Year 2023/24 ATTACHMENT 4 TV-3 The east side of Spruce from 120 feet south of Spyglass Dr to Base Line Rd. The south side of Base Line Rd from Spruce Ave to 800 feet east of Spruce Ave. The Base Line Rd median from Spruce Ave to Milliken Ave. Ground Cover area:16,670 square feet Turf area:14,857 square feet Hardscape area:16,567 square feet TV-4 The south side of Base Line Rd from 800 feet east of Spruce Ave to Milliken Ave. The cul-de-sac at the north end of Cascade Ct. Ground Cover area:16,613 square feet Turf Cover area: 5,324 square feet Hardscape area: 7,950 square feet TV-5 The north side of Terra Vista Pkwy from Belpine Pl to 112 feet west of Butterfield Pl; Terra Vista Pkwy median from Spruce Ave to Milliken Ave and the south side of Terra Vista Pkwy from 164 feet west of Belpine Pl to Belpine Pl. Ground Cover area:19,738 square feet Turf area: 2,675 square feet Hardscape area:13,328 square feet TV-6 The north side of from Spruce Ave to 175 feet north of Countryside Dr and Terra Vista Pkwy median from Church St to Spruce Ave. Ground Cover area:22,959 square feet Turf area: 6,195 square feet Hardscape area:11,702 square feet TV-7 The north side of Church St from the west side of Deer Creek Channel to Terra Vista Pkwy. The west side of Terra Vista Pkwy from Church St to 175 feet north of Countryside Dr. Ground Cover area:9,924 square feet Turf area:5,378 square feet Hardscape area:6,426 square feet TV-8 The southeast corner of Church St and Haven Ave; the Church St median from Haven Ave to Terra Vista Pkwy and the wash end on the Northwest corner of the Deer Creek Channel and Church St. Ground Cover area:2,429 square feet Hardscape area:3,296 square feet TV-9 The Church St median from Terra Vista Pkwy to Spruce Ave. Ground Cover area:7,829 square feet Hardscape area:6,605 square feet Page 330 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 4-R – City of Rancho Cucamonga 7 Fiscal Year 2023/24 ATTACHMENT 4 TV-10 The east side of Valencia Ave from Base Line Rd to the pre-school; the south side of Augusta Dr from Valencia Ave to Meadowlark Pl and the west side of Summerfield Pl from Valencia Ave to Evergreen Dr. Ground Cover area:20,818 square feet Turf area:18,634 square feet Hardscape area: 8,666 square feet TV-11 The paseo at Parkside Pl and Clover Ct from Parkside Pl to the Deer Creek Channel. Ground Cover area:2,795 square feet Hardscape area:1,049 square feet TV-12 The east side of Haven Ave from the pre-school to the Southern Pacific Railroad. Ground Cover area:6,170 square feet Turf area:2,091 square feet Hardscape area:1,060 square feet TV-13 The east side of Spruce Ave from Elm Ave to Mountain View Dr; the north and south sides of Norfolk Dr from Spruce Ave to Cardiff Pl; the south side of Mountain View Dr from Spruce Ave to 290 feet east of Belvedere Pl and the paseo from Spruce Ave to Country View Dr. Ground Cover area:8,459 square feet Turf area:3,355 square feet Hardscape area:8,886 square feet TV-14 The south side of Mountain View Dr from 290 feet east of Belvedere Pl to 590 feet east of Fairhaven Pl; the paseo south of Mountain View Dr between Belvedere Pl and Fairhaven Pl to Country View Dr and from Country View Dr to West Greenway Corridor. Ground Cover area:19,030 square feet Turf area: 8,430 square feet Hardscape area: 9,262 square feet TV-15 The north side of Mountain View Dr from 634 feet west of Biarritz Pl to Milliken Ave. Ground Cover area:4,571 square feet Turf area:4,738 square feet Hardscape area:5,104 square feet TV-16 The West Greenway Corridor from the northeast corner of Elm Ave and Spruce Ave to West Greenway Corridor. Ground Cover area:15,529 square feet Turf area:20,884 square feet Hardscape area:20,626 square feet TV-17 The west side of Milliken Ave from 585 feet north of Mountain View Dr to Mountain View Dr. Page 331 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 4-R – City of Rancho Cucamonga 8 Fiscal Year 2023/24 ATTACHMENT 4 Ground Cover area:5,835 square feet Turf area:3,564 square feet Hardscape area:2,340 square feet TV-18 The south side of Mountain View Dr from approximately 250 feet west of Claridge Pl to Terra Vista Pkwy. The south side of Terra Vista Pkwy from Mountain View Dr to East Greenway Corridor. Terra Vista Pkwy from Mountain View Dr to East Greenway Corridor. Ground Cover area:18,316 square feet Turf area: 5,944 square feet Hardscape area:23,800 square feet TV-19 The Terra Vista Pkwy median from Milliken Ave to Mountain View Dr. The north side of Terra Vista Pkwy from 68 feet north of Addison Rd to Mountain View Dr. The west side of Mountain View Dr from Grapevine St to Terra Vista Pkwy. Ground Cover area:20,306 square feet Turf area: 3,886 square feet Hardscape area:11,478 square feet TV-20 The Church St median from Milliken Ave to 675 feet east of Milliken Ave. Ground Cover area:2,860 square feet Hardscape area:2,112 square feet TV-21 The Church St median from Milliken Ave to Spruce Ave. Ground Cover area:16,811 square feet Turf area: 335 square feet Hardscape area:14,880 square feet TV-22 The Milliken Ave median from Mountain View Dr to Foothill Blvd. Ground Cover area:16,436 square feet Hardscape area:16,267 square feet TV-23 The Milliken Ave underpass from West Greenway Park to Milliken Park. Ground Cover area:19,271 square feet Turf area:22,139 square feet Hardscape area:18,119 square feet Page 332 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 4-R – City of Rancho Cucamonga 9 Fiscal Year 2023/24 ATTACHMENT 4 TV-24 The east side of Haven Ave from 145 feet south of Creekbridge St to 600 feet north of Creekbridge St; the north side of Creekbridge St from Brookside Rd to Haven Ave and the paseo from Creekbridge St and Brookside Rd to the Deer Creek Channel. Ground Cover area:5,851 square feet Turf area:9,965 square feet Hardscape area:4,351 square feet TV-25 The east side of Haven Ave form 145 feet south of Creekbridge St to 410 feet south of Creekbridge St. Ground Cover area:3,319 square feet Turf area:1,677 square feet Hardscape area:1,779 square feet TV-26 The paseo at Plymouth Way south of Essex Pl from Plymouth Way to the Deer Creek Channel. Ground Cover area:1,956 square feet Hardscape area:2,385 square feet TV-27 The paseo from Terra Vista Pkwy to Windsong Pl and from Windsong Pl to Plymouth Way. Ground Cover area:2,270 square feet Turf area:2,731 square feet Hardscape area:3,332 square feet TV-28 The paseo on the north side of 7552 Hardy Ave. Ground Cover area:630 square feet Turf area:733 square feet Hardscape area:432 square feet TV-29 The East Greenway Corridor from Milliken Park to Terra Vista Pkwy, including the turf area at the entrance to Tract 16157. Ground Cover area:17,780 square feet Turf area:52,403 square feet Hardscape area:29,888 square feet TV-30 The Milliken Ave Median from Mountain View Dr to Base Line Rd. Ground Cover area:11,890 square feet Hardscape area:10,260 square feet TV-31 The paseo from Elm Ave to West Greenway Park. Ground Cover area:4,770 square feet Hardscape area:8,900 square feet Page 333 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 4-R – City of Rancho Cucamonga 10 Fiscal Year 2023/24 ATTACHMENT 4 TV-32 The Greenwich Pl paseo from Greenwich Pl to Muirfield Dr. Ground Cover area:1,323 square feet Hardscape area:1,456 square feet TV-33 The south side of Mountain View Dr from 430 feet west of Country View Dr to Country View Dr. Ground Cover area:3,434 square feet Turf area:1,853 square feet Hardscape area:1,720 square feet TV-34 The south side of Terra Vista Pkwy from 390 feet west of Belpine Pl to Belpine Pl. Ground Cover area:1,342 square feet Turf area:1,887 square feet Hardscape area:1,612 square feet TV-35 The Trail Northeast of Ruth Musser School from Terra Vista Pkwy to Spruce Ave. Ground Cover area:9,285 square feet Hardscape area:5,148 square feet TV-36 The east side of Country View Dr from Corsica Ct to Mountain View Dr. The south side of Mountain View Dr from Country View Dr to Milliken Ave. The west side of Milliken Ave from Mountain View Dr to the West Greenway Corridor. Ground Cover area:9,141 square feet Turf area:5,895 square feet Hardscape area:6,058 square feet TV-37 The north side of Meyers Dr from Emery Pl to Elm Ave. Ground Cover area:5,860 square feet Turf area:5,300 square feet Hardscape area:1,283 square feet TV-38 The Church St median from Rochester Ave to Terra Vista Pkwy median from Church St to 853 feet north of Church St. Ground Cover area:8,510 square feet Hardscape area:5,640 square feet TV-39 The north side of Mountain View Dr form 250 feet east of Milliken Ave to Milliken Ave. The east side of Milliken Ave from Mountain View Dr to Terra Vista Pkwy. Ground Cover area:16,751 square feet Hardscape area:15,716 square feet Page 334 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 4-R – City of Rancho Cucamonga 11 Fiscal Year 2023/24 ATTACHMENT 4 TV-40 The south side of Terra Vista Pkwy from Milliken Ave to Mountain View Dr. Ground Cover area:11,630 square feet Hardscape area:19,738 square feet TV-41 The paseo east of Milliken Ave from Terra Vista Pkwy south to Mountain View Dr. Ground Cover area:4,081 square feet Hardscape area:9,640 square feet TV-42 The north side of Mountain View Dr from Terra Vista Pkwy to 250 feet east of Milliken Ave. Ground Cover area:10,994 square feet Hardscape area:14,777 square feet TV-43 Church St median and parkway from Malaga Dr to Terra Vista Pkwy. Ground Cover area:7,506 square feet Hardscape area:3,955 square feet TV-44 The south side of Church St from Terra Vista Pkwy to Rochester Ave. Ground Cover area:10,400 square feet Hardscape area: 7,606 square feet TV-45 The west side of Rochester Ave from Church St to Malaga Dr. Ground cover area:20,693 square feet Hardscape area:12,450 square feet TV-46 The north side of Malaga Dr from Church St to Rochester Ave. Ground Cover area:19,843 square feet Hardscape area:18,000 square feet TV-47 The east side of Terra Vista Pkwy from Church St to Brandywine Pl. The paseo from Brandywine Pl to Bunker Hill Dr. The east side of Radcliff Pl from Bunker Hill Dr to Malaga Dr. Ground Cover area:17,838 square feet Hardscape area: 9,023 square feet TV-48 The Church St median from 750 feet east of Milliken Ave to Malaga Dr. Ground Cover area:5,554 square feet Hardscape area:9,698 square feet FH-1 The Foothill Blvd median from Spruce Ave to Haven Ave. Ground Cover area:4,571 square feet This median contains 9,142 square feet of landscape with 4,571 square feet maintained by LMD 4-R with the remainder maintained by LMD 3B. Page 335 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 4-R – City of Rancho Cucamonga 12 Fiscal Year 2023/24 ATTACHMENT 4 FH-2 The Foothill Blvd median from Spruce Ave to Milliken Ave. Ground Cover area:7,940 square feet This median contains 15,880 square feet of landscape with 7,940 square feet maintained by LMD 4-R with the remainder maintained by LMD 3B. FH-5 The Foothill Blvd median from 360 feet west of Masi Dr to 516 feet west of Masi Dr. Ground Cover area:800 square feet This median contains 1,600 square feet of landscape with 800 square feet maintained by LMD 4-R with the remainder maintained by LMD 3B. FH-6 The Foothill Blvd median from Masi Dr Plaza to Rochester Ave. Ground Cover area:800 square feet This median contains 1,600; square feet of landscape with 800 square feet maintained by LMD 4-R with the remainder maintained by LMD 3B. H-5 The Haven Ave median from Foothill Blvd to Church St. Ground Cover area:11,502 square feet This median contains 23,004 square feet of landscape with 11,502 square feet maintained by LMD 4-R with the remainder maintained by LMD 3B. H-6 Haven Ave median from Church St to Base Line Rd. Ground Cover area:9,615 square feet Converted 8,708 sq. ft. of turf to ground cover effective April 1, 2013. Area listed is the 50% maintained by the District. An equal amount is maintained by the City’s General Fund. H-7 The Haven Ave median from Base Line Rd to Southern Pacific railroad tracks. Ground Cover area:3,130 square feet Converted 3,992 sq. ft. of turf to ground cover effective April 1, 2013. Removed 3,692 sq. ft. of ground cover for turn pocket expansion. Area listed is the 50% maintained by the District. An equal amount is maintained by the City’s General Fund. VG-14 The Base Line Rd median from Milliken Ave to Ellena East. Ground Cover area:9,169 square feet This median contains 18,338 square feet of landscape with 9,169 square feet maintained by LMD 4-R with the remainder maintained by LMD 2. VG-15 The Base Line Rd Median from Rochester Ave to Ellena East. Ground Cover area:3,960 square feet This median contains 7,920 square feet of landscape with 3,960 square feet maintained by LMD 4-R with the remainder maintained by LMD 2. Page 336 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 4-R – City of Rancho Cucamonga 13 Fiscal Year 2023/24 ATTACHMENT 4 Map of Improvements The following page shows the map of landscaping improvements, including irrigation sites and community trails, to be maintained using District funds. Page 337 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 4-R – City of Rancho Cucamonga 14 Fiscal Year 2023/24 ATTACHMENT 4 Page 338 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 4-R – City of Rancho Cucamonga 15 Fiscal Year 2023/24 ATTACHMENT 4 ESTIMATE OF COSTS The estimated costs of administration, maintenance, operations, and servicing the improvements as described in the Plans and Specifications are summarized below. Each year, as part of the District levy calculation process, the costs and expenses are reviewed and the annual costs are projected for the following fiscal year. District Budget Fiscal Year 2023/24 Budget Expe nditure s Pe rsonne l Se rv ice s: Regular Salaries 753,220$ Overtim e Salaries 11,550 Part-tim e Salaries 29,410 Fringe Benefits 383,940 Subtotal - Pe rsonne l 1,178,120 Ope rations and Mainte nance : Operations and Maintenanc e: O & M/General 87,620 Emergenc y Equipm ent and Vehicle Rental 1,700 Equipment Operations & Maintenance 5,750 Subtotal - Operations and Maintenanc e 95,070 Contrac t Servic es: Contrac t Servic es /General 802,190 Tree Maintenanc e 106,130 Contrac t Vehic le Maintenanc e/Repair 6,000 Subtotal - Contrac t Servic es 914,320 Utilities : W ater Utilities 477,240 Electric Utilities 24,970 Subtotal - Utilities 502,210 As s essment Adm inistration 14,440 Adm in./General Overhead 302,420 Subtotal - Ope rations and M ainte nance 1,828,460 Capital Expe nditure s: Captial Outlay - Im provem ents Other Than Building 943,750 Captial Project 838,000 Subtotal - Capital Expe nditure s 1,781,750 T otal Expe nditure s Budge t 4,788,330$ Page 339 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 4-R – City of Rancho Cucamonga 16 Fiscal Year 2023/24 ATTACHMENT 4 Fisc al Year 2023/24 Budget Re v e nue s T axe s: Estimated As s es s m ents , Net of Estim ated Delinquenc ies 2,940,050$ Antic ipated Prior Year Delinquenc ies Collection 10,750 Subtotal - T axe s 2,950,800 Othe r Re v e nue s: Interes t Earnings 123,900 Park Maintenanc e Fees 700 Sports Field Us er Group Rentals 110 Subtotal - Othe r Re v e nue s:124,710 T otal Re v e nue s Budge t 3,075,510 Contribution to/(Use of) Fund Balance (1,712,820)$ Total Gross Estimated As s es s m ents 2,940,044.81$ Total District EBU Count 7,050.26 Ac tual As ses s m ent per EBU - Fis cal Year 2023/24 417.01$ Maxim um Allowable Ass essment per EBU - Fis c al Year 2023/24 516.80$ The maximum allowable assessment per Equivalent Benefit Unit (EBU) listed in the District budget above, is the amount which was approved when the property owners on December 2, 2009, voted in favor of a Prop 218 assessment ballot increase with an allowable annual increase by the lesser of 3.5% or the percentage change in the year ending February preceding the start of the Fiscal Year of the Consumer Price Index for all Urban Consumers (CPI-U) and subsequent District annexations. Each year, prior to the assessments being placed on the tax roll, the City will review the budget and determine the amount needed to maintain the improvements for the upcoming fiscal year. The actual assessment per EBU will be based on the estimated costs of maintenance, available fund balance and maximum allowable assessment with the goal of maintaining the improvements in a satisfactory and healthy condition. The actual assessment amount may be lower than the maximum allowable assessment; however, it may not exceed the maximum unless the increase is approved by the property owners in accordance with Proposition 218. It is the intent of the City to maintain an Operating Reserve which shall not exceed the estimated costs of maintenance and servicing of the improvements prior to December 10 of the fiscal year, or when the City expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. The reserve balance information for the District is as follows: Operating Res erve Estim ated Res erve Fund Balanc e, June 30, 2023 6,849,036$ Contribution to/(Use of) Res erve - Fisc al Year 2023/24 (1,712,820) Estim ated Res erve Fund Balanc e, June 30, 2024 5,136,216$ Page 340 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 4-R – City of Rancho Cucamonga 17 Fiscal Year 2023/24 ATTACHMENT 4 Definitions of Budget Items The following definitions describe the costs and expenses included in the District Budget: Personnel Services: This item includes the costs attributed to the salaries of all full-time and part-time employees dedicated to maintenance of the District improvements. Additionally, this includes benefits available to City employees. Operations and Maintenance: This item includes the costs of City staff to perform maintenance duties within the boundaries of the District. Contract Services: This item includes the contract costs of a landscape maintenance company responsible for the ongoing maintenance of the District improvements. Utilities: This item includes the costs to furnish electricity, water, and telephone services, as required, for the operation and maintenance of the sprinklers and irrigation controllers in the District. Assessment Administration: This item includes the cost of all particular departments and staff of the City, as well as consultants, for providing the administration, coordination and management of District services, operations, and incidental expenses related to the District. This item also includes creation of an annual Engineer's Report, resolutions and placing the assessment amounts onto the County tax roll each year, along with responding to any public inquiries and future Proposition 218 balloting proceedings. General Overhead: This item includes the costs of all central services departments of the City for providing the coordination of District services, inspections, annual bid management, responding to public concerns, public education, accounting, auditing and procedural matters associated with the District. This item also includes an allocation for general City staff time for administrative functions and systems that provide for a functional and operational District within the City's administrative structure. Capital Outlay: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include new monuments, irrigation systems, and other large improvements. Other Revenues: This includes other revenues that are not levied through the annual assessments that support the District operations. These other revenues may include: interest earnings, other rental/lease income (cell site tower leases), Park Maintenance Fees, Sports Field User Group Rentals, and parking permits (Metrolink Station paid parking). Page 341 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 4-R – City of Rancho Cucamonga 18 Fiscal Year 2023/24 ATTACHMENT 4 METHOD OF ASSESSMENT Overview Pursuant to the 1972 Act and Article XIII D, all parcels that have a special benefit conferred upon them as a result of the maintenance and operation of improvements and services shall be identified, and the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entire costs of the maintenance and operation of improvements. The 1972 Act, permits the establishment of assessment districts for the purpose of providing certain public improvements which include the operation, maintenance and servicing of landscaping improvements. Section 22573 of the 1972 Act requires that maintenance assessments must be levied according to benefit rather than according to assessed value. This Section states: The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefit to be received by each such lot or parcel from the improvements. The determination of whether or not a lot or parcel will benefit from the improvements shall be made pursuant to the Improvement Act of 1911 (Division 7 commencing with Section 5000) [of the Streets and Highways Code, State of California]. Section 22547 of the 1972 Act also permits the designation of zones of benefit within any individual assessment district if "by reasons or variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvement." Article XIII D, Section 4(a) of the California Constitution limits the amount of any assessment to the proportional special benefit conferred on the property. Article XIII D also provides that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment. Exempted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements and rights-of-ways, public greenbelts and public parkways. The net amount to be assessed may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels. Proposition 218, approved by the voters in November 1996, requires the City to separate general benefit from special benefit, where only special benefit is assessed. Page 342 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 4-R – City of Rancho Cucamonga 19 Fiscal Year 2023/24 ATTACHMENT 4 General Benefit Section 4 of Article XIII D of the California Constitution provides that once a local agency which proposes to impose assessments on property has identified those parcels that will have special benefits conferred upon them and upon which an assessment will be imposed, the local agency must next "separate the general benefits from the special benefits conferred," and only the special benefits can be included in the amount of the assessments imposed. In addition to the special benefits received by parcels within the District, there are incidental general benefits that are conferred on parcels outside the boundaries of the District which include: • the control of dust and insect infestations, and • the visual enhancement of the area to persons or vehicles that may travel through the District. However, it has been determined that these benefits are incidental and do not provide a direct benefit to parcels outside of the District that are not being assessed. Any incidental benefit received by parcels outside of the District is further offset by the incidental benefit received by parcels within the District from the maintenance of landscaping improvements by the other assessment districts within the City. Special Benefit The maintenance and servicing of the improvements within the District (which are described in the Description of Improvements and Services Section of this report) are for the benefit of the properties within the District and, as such, confer a special and direct benefit to parcels within the District by: •improving the livability, appearance, and desirability for properties within the boundaries of the District, and •ensuring that improvements do not reach a state of deterioration or disrepair so as to be materially detrimental to properties within the District, and •providing beautification, shade and overall enhancement to properties within the District. The above mentioned items affect the assessed property in a way that is particular and distinct from their effect on other parcels and that real property in general and the public at large do not share. They contribute to a specific enhancement of the properties within the District. Since these improvements, including the community trails, were installed and are maintained specifically for the properties within the District, only properties within the District receive a special benefit and are assessed for said maintenance. Page 343 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 4-R – City of Rancho Cucamonga 20 Fiscal Year 2023/24 ATTACHMENT 4 Method of Assessment Spread Each of the parcels within the District is deemed to receive special benefit from the improvements. Each parcel that has a special benefit conferred upon it as a result of the maintenance and operation of improvements is identified and the proportionate special benefit derived by each identified parcel is determined in relationship to the entire costs of the maintenance and operation of the improvements. When the District was formed, Article XIII D and Proposition 218 had not yet been passed. Upon the passage of Article XIII D and the subsequent passage of the Proposition Omnibus Implementation Act, new rules were put into place. Due to the changes in legal requirements, as property annexed to the District after the passage of the Assessment Law, the description of the method of assessment became more refined. On December 2, 2009, Proposition 218 assessment ballot increase was approved by the property owners in this District. Therefore, all parcels included in the District boundary, are being levied in accordance with Article XIII D and Proposition 218. To assess special benefit appropriately, it is necessary to relate the different type of parcel improvements to each other. The EBU method of apportionment uses the single-family home as the basic unit of assessment since there is a total of 2,651 single family parcels within the District which represents 69.1 percent of the total assessable parcels within the District. A method has been developed to convert other land uses to EBUs based on an assessment formula that equates to the property’s specific development status, type of development (land- use), and size of the property, as compared to a single family residential parcel. Other residential land uses are assigned Equivalent Dwelling Units (EDU) in proportion to the number of trips generated and average number of occupants per dwelling unit in comparison to the typical single- family parcel. Based upon the trip generation data from the ITE Trip Generation Report, San Diego Association of Governments’ Guide to Vehicular Traffic Generation Rates which have been adopted by San Bernardino County Transpiration Authority (formerly known as San Bernardino Associated Governments) and the most recent census data for the City of Rancho Cucamonga, condominiums are assigned 0.80 EDU’s since the number of residents and number of trips generated per dwelling unit are 80 percent of the typical single family residence. Multi-family residential units are assigned 0.70 EDU’s per dwelling unit since the number of residents and number of trips generated per multifamily residential unit are 70 percent of the typical single-family residential unit. This reduction is further supported by virtue of the fact that both condominium developments and multi-family residential development have a higher level of landscaping that reduce the benefit received by these parcels from District maintained landscaping. EBU’s are assigned to Commercial and Industrial parcels based upon the number of trips generated as well. The ITE Trip Generation Report shows that non-residential uses similar to those found in the District generate from 30 to 400 plus trips per day based upon the specific land use. An average trip generation rate of 135 trips per day was used since the non-residential uses within the district are generally those that result in fewer trips per day per acre, when compared Page 344 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 4-R – City of Rancho Cucamonga 21 Fiscal Year 2023/24 ATTACHMENT 4 to more intense non-residential uses such as community shopping centers which can generate in excess of 500 trips per day. Based upon an average density of approximately 9 single family residential units per acre and a trip generation rate of 10 trips per day for a typical single family residential unit, the trip generation rate for commercial and industrial parcels is approximately 1.5 times that of an acre developed for single family residential use based upon an average of 135 trips per acre for non-residential uses. The trips generated by non-residential uses has been reduced by approximately 40 percent to account for the number of “pass-by” trips which are those trips which stop at non-residential parcels enroute to/from residential parcels. This reduces the trips generated per acre from 135 to 81. Since non-residential parcels do not receive a significant special benefit from the park facilities maintained by the District, the number of trips generated per acre has been further reduced in proportion to the ratio of expenditures for landscape maintenance versus park maintenance within the District, which has been estimated by the City to be 60% parks and 40% landscaping. Therefore, commercial and industrial parcels have been assigned a value of 3.25 EBU’s per acre to represent the special benefit received by those parcels relative to the typical single-family residential parcel. Vacant parcels are assigned an EBU value of 0.25 per acre because they receive a lesser benefit from the improvements until such time as development occurs. Publicly owned school parcels are also assigned an EBU value of 0.25 per acre in recognition of the limited benefit they receive from the improvements maintained by the District and the benefit conferred upon other parcels within the District by the open space and landscaping maintained by the School District on their parcels which might be used by properties within the District under joint use agreements between the School District and the City. The following table provides the weighting factors applied to various land-use types, as assigned by County use code, to determine each parcel’s EBU assignment. Land-Use Equivalent Benefit Units Prope rty T ype (County Use Code )EBU Value Multiplie r Single Family Res idential 1.00 Parc el Condom inium 0.80 Unit Multi-Family Res idential 0.70 Unit Com merc ial/Industrial 3.25 Ac re Vacant (inc l. all undevelped property)0.25 Ac re Sc hools 0.25 Ac re The use of the latest County Assessor's Secured Roll shall be the basis for the Property Type determination and units/acreage assignments, unless better data is available to the City. In addition, if any parcel within the District is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, the Property Type and EBU assignment shall be Page 345 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 4-R – City of Rancho Cucamonga 22 Fiscal Year 2023/24 ATTACHMENT 4 based on the correct parcel number and/or new parcel number(s) County use code and subsequent property information. If a single parcel has changed to multiple parcels, the EBU assignment and assessment amount applied to each of the new parcels will be recalculated rather than spread the proportionate share of the original assessment. The following table summarizes the Fiscal Year 2023/24 maximum allowable assessment rates for the District: Prope rty T ype (County Use Code ) M aximum Allowable Asse ssme nt Rate pe r EBU Actual Asessment Rate pe r EBU T otal Units/Acre s T otal EBUs Single Family Residential $516.80 $417.01 2,652.00 2,652.00 Condom inium $516.80 $417.01 1,249.00 999.20 Multi-Family Residential $516.80 $417.01 4,001.00 2,800.70 Commerc ial/Industrial $516.80 $417.01 176.40 573.30 Vacant (inc l. all undevelped property)$516.80 $417.01 64.85 16.21 Schools $516.80 $417.01 35.41 8.85 The total amount of maintenance and incidental costs for maintaining the landscaping and community trail improvements is assessed to the individual parcels of real property within the District in proportion to the special benefit received by such parcels of real property. The proposed individual assessments are shown on the assessment roll in this report. Cost of Living Inflator Each fiscal year beginning Fiscal Year 2010/11, the maximum allowable assessment amount may be increased by the lesser of 3.5% or the percentage change in the year ending February preceding the start of the Fiscal Year of the Consumer Price Index for all Urban Consumers (CPI-U), for the Riverside – San Bernardino – Ontario Consumer Price Index area. If for any reason the percentage change is negative the maximum allowable assessment would not be decreased by reason of such negative percentage change and would remain at the amount as computed on the previous fiscal year regardless of any CPI adjustment. The annual assessment cannot exceed the actual costs to operate the District in any given year. If operating costs are such that the maximum assessment amount is not needed, the City would levy only what is needed for that year. The actual assessment rate for Fiscal Year 2023/24 will increase from $397.15 to $417.01 per single-family residence, a CPI increase of 5.0% as compared to Fiscal Year 2022/23. Page 346 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 4-R – City of Rancho Cucamonga 23 Fiscal Year 2023/24 ATTACHMENT 4 ASSESSMENT DIAGRAM An Assessment Diagram for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the San Bernardino County Assessor Office, at the time this report was prepared, and are incorporated by reference herein and made part of this Engineer's Report. Page 347 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 4-R – City of Rancho Cucamonga 24 Fiscal Year 2023/24 ATTACHMENT 4 Page 348 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 4-R – City of Rancho Cucamonga 25 Fiscal Year 2023/24 ATTACHMENT 4 ASSESSMENT ROLL AND ANNEXATIONS Assessment Roll The assessment roll is a listing of the assessment for Fiscal Year 2023/24 apportioned to each lot or parcel, as shown on the last equalized roll of the Assessor of the County of San Bernardino. The following table summarizes the Fiscal Year 2023/24 actual assessments for the District: Prope rty T ype (County Use Code ) Actual Asse ssme nt Rate per EBU T otal Units/Acre s T otal EBUs T otal Assessme nt Single Family Res idential $417.01 2,652.00 2,652.00 $1,105,910.52 Condom inium 417.01 1,249.00 999.20 416,678.89 Multi-Family Res idential 417.01 4,001.00 2,800.70 1,167,931.91 Commerc ial/Industrial 417.01 176.40 573.30 239,071.39 Vacant (incl. all undevelped property)417.01 64.85 16.21 6,760.61 Schools 417.01 35.41 8.85 3,691.49 T otals 8,178.66 7,050.26 $2,940,044.81 A copy of the full assessment roll is available for review in the City Clerk's office. Annexations There were no effective annexations for Fiscal Year 2023/24. Page 349 of 715 ATTACHMENT 5 Annual Engineer’s Report Fiscal Year 2023/24 City of Rancho Cucamonga Landscape Maintenance District No. 6-R (Caryn Planned Community) Page 350 of 715 CITY OF RANCHO CUCAMONGA LANDSCAPE MAINTENANCE DISTRICT NO. 6-R (CARYN PLANNED COMMUNITY) 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909.477.2700 Fax: 909.477.2845 CITY COUNCIL L. Dennis Michael, Mayor Lynne B. Kennedy, Mayor Pro Tem Ryan A. Hutchison, Council Member Kristine D. Scott, Council Member Ashley N. Stickler, Council Member CITY STAFF John R. Gillison, City Manager Elisa Cox, Assistant City Manager Jason C. Welday, Director of Engineering Services/City Engineer William Wittkopf, Public Works Director Noah Daniels, Finance Director Page 351 of 715 TABLE OF CONTENTS ENGINEER’S LETTER 1 INTRODUCTION 3 Reason for Assessment 3 Process for Annual Assessment 3 PLANS AND SPECIFICATIONS 4 Description of the Boundaries of the District 4 Description of Improvements and Services 4 Map of Improvements 9 ESTIMATE OF COSTS 11 District Budget 11 Definitions of Budget Items 13 METHOD OF ASSESSMENT 14 Overview 14 General Benefit 15 Special Benefit 15 Method of Assessment Spread 16 Cost of Living Inflator 17 ASSESSMENT DIAGRAM 18 ASSESSMENT ROLL AND ANNEXATIONS 20 Assessment Roll 20 Annexations 20 Page 352 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 6-R – City of Rancho Cucamonga 1 Fiscal Year 2023/24 ATTACHMENT 5 ENGINEER’S LETTER WHEREAS, on June 7, 2023, the City Council of Rancho Cucamonga (the “City”), under the Landscape and Lighting Act of 1972 (the “1972 Act”) adopted its Resolution No. 2023-055, a Resolution Initiating Proceedings for the Levy of Annual Assessments for Landscape Maintenance District No. 6-R (Caryn Planned Community) (the “District”); and WHEREAS, the Resolution Initiating Proceedings directed staff to prepare and file an Annual Engineer’s Report for Fiscal Year 2023/24 pursuant to the requirements of the 1972 Act. The Annual Engineer’s Report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the maintenance, operations and servicing of the improvements for the District for the referenced fiscal year, a diagram for the District showing the area and properties proposed to be assessed, and an assessment of the estimated costs of the maintenance, operations and servicing of the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received; and NOW THEREFORE, the following assessment is proposed to be authorized in order to pay the estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the boundaries of the District in proportion to the special benefit received. The following table summarizes the proposed assessment. Fiscal Year 2023/24 Budget Expe nditure s Pers onnel Servic es 22,720$ Operations and Maintenanc e 644,680 Capital Expenditures 54,000 T otal Expe nditure s Budge t 721,400 Re v e nue s Taxes : Es tim ated As s essm ents , Net of Estimated Delinquenc ies 588,180 Antic ipated Prior Year Delinquencies Collec tion 5,310 Subtotal - Taxes 593,490 Other Revenues 14,600 Transfer In 42,740 T otal Re v e nue s Budge t 650,830 Contribution to/(Use of) Fund Balance (70,570)$ Total District EBU Count 1,199.84 Ac tual Asses s m ent per EBU 490.21$ Maxim um Allowable As s ement per EBU 490.21$ Page 353 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 6-R – City of Rancho Cucamonga 2 Fiscal Year 2023/24 ATTACHMENT 5 In making the assessments contained herein pursuant to the 1972 Act: 1. I have identified all parcels which will have a special benefit conferred upon them from the improvement described in the Special Benefit Section of this Annual Engineer’s Report (the “Specially Benefited Parcels”). For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is included in this Annual Engineer’s Report. 2. I have evaluated the costs and expenses of the improvements upon the Specially Benefited Parcels. In making such evaluation: a. The proportionate special benefit derived by each Specially Benefited Parcel from the improvements was determined in relationship to the entirety of the maintenance costs of the improvements; b. No assessment has been imposed on any Specially Benefited Parcel which exceeds the reasonable cost of the proportional special benefit conferred on such parcel from the improvements; and c. Any general benefits from the improvements have been separated from the special benefits and only special benefits have been assessed. I, the undersigned, respectfully submit the enclosed Annual Engineer’s Report and, to the best of my knowledge, information and belief, I certify that the Annual Engineer’s Report and Assessment Diagram included herein have been prepared and computed in accordance with the order of the City Council of the City of Rancho Cucamonga and the Assessment Law. Jason C. Welday Director of Engineering Services/City Engineer Page 354 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 6-R – City of Rancho Cucamonga 3 Fiscal Year 2023/24 ATTACHMENT 5 INTRODUCTION Reason for Assessment Approval of the assessment covered by this Engineer’s Report will generate the revenue necessary to: Provide for the maintenance and servicing of the improvements described in this Engineer’s Report. Maintenance may include but is not limited to, all of the following: the upkeep, repair, removal or replacement of all or any part of any improvement or facility such as paseos, community trails, fencing and irrigation systems, and providing for the growth, vigor and care of the trees and landscape plant materials. Servicing means the furnishing of electricity, gas or other illuminating energy for the lighting of landscape or appurtenant facilities. This shall also include material, vehicle, equipment, capital improvements and administrative costs associated with the annual administration and operation of the District. Process for Annual Assessment The City cannot levy and collect annual assessments within the District without complying with the procedures specified in the 1972 Act. On an annual basis, an Engineer’s Report must be prepared which contains a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. The City Council must also adopt a resolution of intention which: •Declares the intention of the City Council to levy and collect assessments within the District for the fiscal year stated therein. •Generally describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements. •Refers to the District by its distinctive designation and indicate the general location of the District. •Refers to the Engineer’s Report, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. •Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment. •States whether the assessment is proposed to increase from the previous year. If the assessments are to be levied in the same or lesser amounts than the maximum assessment amount approved, the City Clerk shall give notice by causing the resolution of intention to be published. Any interested person may, prior to the conclusion of the public hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. During the course or upon Page 355 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 6-R – City of Rancho Cucamonga 4 Fiscal Year 2023/24 ATTACHMENT 5 conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including the improvements, to the zones within the District, and the proposed diagram or the proposed assessment. The City Council, upon conclusion of the public hearing, must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the assessment. If the assessment to be levied exceeds the maximum assessment amount previously approved, the City must comply with the procedures specified in Article XIII D and Proposition 218. The voters in the State of California in November 1996 added Article XIII D to the California Constitution imposing, among other requirements, the necessity for the City to conduct an assessment ballot procedure to enable the owners of each property on which assessments are proposed to be enacted or increased, the opportunity to express their support for, or opposition to the proposed assessment or increase in such assessment. PLANS AND SPECIFICATIONS The District provides for the administration, maintenance, operations, and servicing of various improvements located within the public right-of-way and dedicated easements within the boundaries of the District. Description of the Boundaries of the District The District is located in the City of Rancho Cucamonga. The boundaries of the District are generally described as that area located north of the 210 Freeway, south of Banyan St, west of Rochester Ave and east of Milliken Ave, also known as the Caryn Planned Community. The boundaries also include Tract No. 13835 east of Rochester Ave and Tracts No. 13748, 13857 & 13858 west of Milliken Ave. Zone 1 is the area generally located west of Rochester Ave and east of Milliken Ave. Zone 2 is the area generally located east of Rochester Ave and west of Milliken Ave. Description of Improvements and Services The improvements maintained by the District include the paseos, community trails, trees, landscaped sites and appurtenant facilities that are throughout the District. These improvements are located within the street right-of-ways and dedicated public easements which are within the boundaries of the District. The landscaping maintenance includes, but is not limited to, the pruning, fertilizing, mowing, weeding, pest control, removal of trash/debris, and irrigation of the trees, shrubs, vines, ground cover, and turf. Maintenance of associated improvements and facilities, such as community trails, fencing and irrigation systems, includes but is not limited to, grading and replacement of trail surfacing, trail fence repair and replacement, steel fence painting, repair and replacement, and irrigation systems control, adjustment, trouble-shooting, repair and replacement. Services include personnel, materials, contracting services, utilities, capital projects Page 356 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 6-R – City of Rancho Cucamonga 5 Fiscal Year 2023/24 ATTACHMENT 5 and all necessary costs associated with the maintenance, replacement and repair required to keep the improvements in a healthy, vigorous and satisfactory condition. In addition, it is the City's intention to continue to use cost effective materials, including the future ability to replace landscaping with drought resistant or low water use plants, in order to lower expenses of the District. The breakdown of maintained areas is as follows: Site #Descriptive Location CC-1 The southside of Banyan St from 1290 feet west of Milliken Ave to Milliken Ave. The west side of Milliken Ave median from Banyan St to 292 south of Vintage Dr. Ground Cover area:96,892 square feet Turf area:17,945 square feet Hardscape area:13,944 square feet CC-3 The paseo on the west side of Morning Pl from Morning Pl to Deer Creek Channel. Ground Cover area:2,801 square feet Turf area: 124 square feet Hardscape area:4,609 square feet CC-4 The west side of Morning Pl, from Banyan St to Starview Pl. The north side of Starview Pl, from Morning Pl to Starview Pl. Ground Cover area:14,273 square feet Turf Cover area: 5,513 square feet Hardscape area: 5,000 square feet CC-5 Silver Sun Ln paseo from the end of Silver Sun Ln cul-de-sac to Deer Creek Channel. Ground Cover area:25,890 square feet Turf area:12,084 square feet Hardscape area: 1,350 square feet CC-6 The east and west side of Netherlands View Loop from Vintage Dr to Vintage Dr. The Netherlands View Loop paseo from Netherlands View Loop to Mt Sterling Ct. Ground Cover area:88,902 square feet Turf area: 676 square feet Hardscape area:23,650 square feet CC-7 The east and west side of Hillview Loop from Mt Rainier Ct to Kettle Peak Pl. Ground Cover area:14,930 square feet Turf area: 6,318 square feet Hardscape area:12,236 square feet Page 357 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 6-R – City of Rancho Cucamonga 6 Fiscal Year 2023/24 ATTACHMENT 5 CC-8 The paseo from Hillview Loop to Vintage Dr. Ground Cover area:42,107 square feet Hardscape area:22,752 square feet Hardscape area: 4,089 square feet CC-9 The south side of Vintage Dr from 250 feet west of Hillview Loop to Hillview Loop. The west side of Hillview Loop from Vintage Dr to Kettle Peak Pl. The west side of Kettle Peak Pl from Hillview Loop to Donner Pass Ct. The east side of Hillview Loop from Kettle Peak Pl to Tioga Peak Ct. Ground Cover area:47,334 square feet Turf area: 4,954 square feet Hardscape area: 9,088 square feet CC-10 The east side of Terrace View Loop from Vintage Dr to Butler Peak Pl. The west side of Terrace View Loop from Rainbow Falls Ct to Vintage Dr. Ground Cover area:24,603 square feet Hardscape area:10,760 square feet CC-11 The paseo from Caryn School to Banyan St. The south side of Banyan St from the paseo to Rochester Ave. The east and west side of Mt Baldy Pl from Banyan St to Sierra Crest View Loop. The north side of Sierra Crest View Loop from Hilltop Ct to Woodland Ct. Ground Cover area:47,507 square feet Turf area: 7,810 square feet Hardscape area: 7,825 square feet CC-12 The separation paseo from Vintage Dr to Pinnacle Peak Ct. Ground Cover area:50,325 square feet Turf area:15,021 square feet Hardscape area: 7,675 square feet CC-13 The east side of Hillview Loop from Tioga Peak Ct to Vintage Dr. The south side of Vintage Dr from Hillview Loop to Terrace View Loop. The north side of Vintage Dr from Hillview Loop to Caryn School. The east side of Terrace View Loop from Vintage Dr to Mt San Antonio Ct. Ground Cover area:26,162 square feet Turf area: 4,508 square feet Hardscape area:12,928 square feet Page 358 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 6-R – City of Rancho Cucamonga 7 Fiscal Year 2023/24 ATTACHMENT 5 CC-14 The east side of Sierra Crest View Loop from Mt Waverly Ct to Vintage Dr. The north side of Vintage Dr from Sierra Crest View Loop to Sierra Crest View Loop. The east and west side of Sierra Crest View Loop from Vintage Dr to Mt Wilson Ct. The south side of Vintage Dr from Netherlands View Loop to 330 feet west of Netherlands View Loop. Ground Cover area:73,250 square feet Turf area:16,525 square feet Hardscape area: 9,885 square feet CC-15 The south side of Sierra Crest View Loop from Mt Waverly Ct to Mt Cambridge Ct. The north side of Sierra Crest View Loop from Mt Cambridge Ct to Woodland Ct. The north side of Sierra Crest View Loop from Hilltop Ct to Caryn School. The Sierra Crest View Loop paseo from Sierra Crest View Loop to Mt Sherman Ct. Ground Cover area:70,990 square feet Turf area: 7,699 square feet Hardscape area:20,055 square feet CC-16 The south side of Vintage Dr from Netherlands View Loop to Rochester Ave. The north side of Vintage Dr from Rochester Ave to Sierra Crest View Loop. The east and west side of Sierra Crest View Loop from Mt Wilson Ct to Mt Cambridge Ct. The Netherlands View Loop Paseo from Vintage Dr to Mt Sterling Ct. Ground Cover area:77,202 square feet Turf area: 3,954 square feet Hardscape area:18,195 square feet CC-17 The east side of Milliken Ave from Vintage Dr to Banyan St. Ground Cover area:13,740 square feet Turf area: 9,088 square feet Hardscape area: 6,460 square feet CC-18 The north side of Vintage Dr from Milliken Ave to Hillview Loop. The south side of Vintage Dr from 104 feet west of Hillview Loop to Milliken Ave. Ground Cover area:32,287 square feet Turf area: 3,889 square feet Hardscape area:11,188 square feet CC-19 The Terrace View Loop paseo from Vintage Dr to Terrace View Loop. Ground Cover area:17,469 square feet Turf area:15,617 square feet Hardscape area: 2,736 square feet Page 359 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 6-R – City of Rancho Cucamonga 8 Fiscal Year 2023/24 ATTACHMENT 5 CC-20 The east side of Terrace View Loop from Mt San Antonio Ct to El Capitan Ct. The west side of Terrace View Loop from Butler Peak Pl to Mt San Antonio Ct. Ground Cover area:20,627 square feet Hardscape area:20,017 square feet Hardscape area: 7,888 square feet CC-21 The west side of Rochester Ave from Banyan St to 317 feet south of Vintage Dr. Ground Cover area:31,292 square feet CC-22 The south side of Vintage Dr from Terrace View Loop to Sierra Crest View Loop. The east and west side of Hillview Loop from Vintage Dr to Mt Rainier Ct. Ground Cover area:11,609 square feet Turf area: 3,763 square feet Hardscape area: 6,524 square feet CC-23 The south side of Banyan St from Milliken Ave to Butler Peak Pl. The west side of Butler Peak Pl from Banyan St to Terrace View Loop. The north side of Terrace View Loop from Butler Peak Pl to Rainbow Falls Ct. Ground Cover area:12,132 square feet Hardscape area: 528 square feet CC-24 The north side of Terrace View Loop from El Capitan Ct to Butler Peak Pl. The east side of Butler Peak Pl from Terrace View Loop to Banyan St. The south side of Banyan St from Butler Peak Pl to 990 feet east of Butler Peak Pl. Ground Cover area:14,452 square feet Hardscape area: 1,600 square feet CC-26 The east side of Rochester Ave from 210 freeway to Vintage Dr. The north and south side of Vintage Dr from Rochester Ave to Thunder Mountain Ave. The west side of Rochester Ave from 317 feet south of Vintage Dr to the 210 freeway. Ground Cover area:35,037 square feet Hardscape area:19,779 square feet CC-27 The Milliken Ave median and the west side of Milliken Ave from 292 feet south of Vintage Dr to 210 freeway. Ground Cover area:13,365 square feet Hardscape area:12,300 square feet CC-28 The east side of Milliken Ave from Vintage Dr to the 210 freeway right-of-way. Ground Cover area:17,724 square feet Cobble area: 2,387 square feet Hardscape area: 5,810 square feet Page 360 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 6-R – City of Rancho Cucamonga 9 Fiscal Year 2023/24 ATTACHMENT 5 Map of Improvements The following page shows the map of landscaping improvements, including irrigation sites and community trails, to be maintained using District funds. Page 361 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 6-R – City of Rancho Cucamonga 10 Fiscal Year 2023/24 ATTACHMENT 5 Page 362 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 6-R – City of Rancho Cucamonga 11 Fiscal Year 2023/24 ATTACHMENT 5 ESTIMATE OF COSTS The estimated costs of administration, maintenance, operations, and servicing the improvements as described in the Plans and Specifications are summarized below. Each year, as part of the District levy calculation process, the costs and expenses are reviewed and the annual costs are projected for the following fiscal year. District Budget Fisc al Year 2023/24 Budget Expe nditure s Pe rsonne l Se rv ice s: Regular Salaries 13,870$ Part Tim e Salaries 1,460 Fringe Benefits 7,390 Subtotal - Pe rsonne l 22,720 Ope rations and M ainte nance : Operations and Maintenanc e: O & M/General 10,550 Em ergenc y Equipm ent and Vehicle Rental 200 Subtotal - Operations and Maintenanc e 10,750 Contrac t Servic es : Contrac t Servic es /General 334,360 Tree Maintenanc e 65,310 Subtotal - Contrac t Servic es 399,670 Utilities : W ater Utilities 173,540 Elec tric Utilities 3,880 Subtotal - Utilities 177,420 As ses s ment Adm inis tration 4,570 Admin./General Overhead 52,270 Subtotal - Ope rations and M ainte nance 644,680 Capital Expe nditure s: Captial Outlay - Equipment 4,000 Captial Project 50,000 Subtotal - Capital Expe nditure s 54,000 T otal Expe nditure s Budge t 721,400$ Page 363 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 6-R – City of Rancho Cucamonga 12 Fiscal Year 2023/24 ATTACHMENT 5 Fiscal Year 2023/24 Budget Re v e nue s T axe s: Es tim ated Ass es s m ents , Net of Es tim ated Delinquencies 588,180$ Antic ipated Prior Year Delinquencies Collection 5,310 Subtotal - T axe s 593,490 Othe r Re v e nue s: Interes t Earnings 14,600 T ransfe r In: Trans fer In - General Fund 42,740 T otal Re v e nue s Budge t 650,830 Contribution to/(Use of) Fund Balance (70,570)$ Total Gros s Es tim ated Asses s m ents 588,173.16$ Total Distric t EBU Count 1,199.84 Ac tual As s es sm ent per EBU - Fiscal Year 2023/24 490.21$ Maxim um Allowable As s em ent per EBU - Fiscal Year 2023/24 490.21$ The maximum allowable assessment per Equivalent Benefit Unit (EBU) listed in the District budget above, is the amount which was approved when the property owners on September 1, 2010, voted in favor of a Proposition 218 assessment ballot increase with an allowable annual increase by the lesser of 3.0% or the percentage change in the year ending February preceding the start of the Fiscal Year of the Consumer Price Index for all Urban Consumers (CPI-U) and subsequent District annexations. Each year, prior to the assessments being placed on the tax roll, the City will review the budget and determine the amount needed to maintain the improvements for the upcoming fiscal year. The actual assessment per EBU will be based on the estimated costs of maintenance, available fund balance and maximum allowable assessment with the goal of maintaining the improvements in a satisfactory and healthy condition. The actual assessment amount may be lower than the maximum allowable assessment; however, it may not exceed the maximum unless the increase is approved by the property owners in accordance with Proposition 218. It is the intent of the City to maintain an Operating Reserve which shall not exceed the estimated costs of maintenance and servicing of the improvements prior to December 10 of the fiscal year, or when the City expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. The reserve balance information for the District is as follows: Operating Res erve Es tim ated Reserve Fund Balanc e, June 30, 2023 697,758$ Contribution to/(Us e of) Reserve - Fisc al Year 2023/24 (70,570) Es tim ated Reserve Fund Balanc e, June 30, 2024 627,188$ Page 364 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 6-R – City of Rancho Cucamonga 13 Fiscal Year 2023/24 ATTACHMENT 5 Definitions of Budget Items The following definitions describe the costs and expenses included in the District Budget: Personnel Services: This item includes the costs attributed to the salaries of all full-time and part-time employees dedicated to maintenance of the District improvements. Additionally, this includes benefits available to City employees. Operations and Maintenance: This item includes the costs of City staff to perform maintenance duties within the boundaries of the District. Contract Services: This item includes the contract costs of a landscape maintenance company responsible for the ongoing maintenance of the District improvements. Utilities: This item includes the costs to furnish electricity, water, and telephone services, as required, for the operation and maintenance of the sprinklers and irrigation controllers in the District. Assessment Administration: This item includes the cost of all particular departments and staff of the City, as well as consultants, for providing the administration, coordination and management of District services, operations, and incidental expenses related to the District. This item also includes creation of an annual Engineer's Report, resolutions and placing the assessment amounts onto the County tax roll each year, along with responding to any public inquiries and future Proposition 218 balloting proceedings. General Overhead: This item includes the costs of all central services departments of the City for providing the coordination of District services, inspections, annual bid management, responding to public concerns, public education, accounting, auditing and procedural matters associated with the District. This item also includes an allocation for general City staff time for administrative functions and systems that provide for a functional and operational District within the City's administrative structure. Capital Outlay: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include new monuments, irrigation systems, and other large improvements. Other Revenues: This includes other revenues that are not levied through the annual assessments that support the District operations. These other revenues may include: interest earnings, other rental/lease income (cell site tower leases), Park Maintenance Fees, Sports Field User Group Rentals, and parking permits (Metrolink Station paid parking). Page 365 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 6-R – City of Rancho Cucamonga 14 Fiscal Year 2023/24 ATTACHMENT 5 METHOD OF ASSESSMENT Overview Pursuant to the 1972 Act and Article XIII D, all parcels that have a special benefit conferred upon them as a result of the maintenance and operation of improvements and services shall be identified, and the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entire costs of the maintenance and operation of improvements. The 1972 Act, permits the establishment of assessment districts for the purpose of providing certain public improvements which include the operation, maintenance and servicing of landscaping improvements. Section 22573 of the 1972 Act requires that maintenance assessments must be levied according to benefit rather than according to assessed value. This Section states: The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefit to be received by each such lot or parcel from the improvements. The determination of whether or not a lot or parcel will benefit from the improvements shall be made pursuant to the Improvement Act of 1911 (Division 7 commencing with Section 5000) [of the Streets and Highways Code, State of California]. Section 22547 of the 1972 Act also permits the designation of zones of benefit within any individual assessment district if "by reasons or variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvement". Article XIII D, Section 4(a) of the California Constitution limits the amount of any assessment to the proportional special benefit conferred on the property. Article XIII D also provides that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment. Exempted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements and rights-of-ways, public greenbelts and public parkways. The net amount to be assessed may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels. Proposition 218, approved by the voters in November 1996, requires the City to separate general benefit from special benefit, where only special benefit is assessed. Page 366 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 6-R – City of Rancho Cucamonga 15 Fiscal Year 2023/24 ATTACHMENT 5 General Benefit Section 4 of Article XIII D of the California Constitution provides that once a local agency which proposes to impose assessments on property has identified those parcels that will have special benefits conferred upon them and upon which an assessment will be imposed, the local agency must next "separate the general benefits from the special benefits conferred," and only the special benefits can be included in the amount of the assessments imposed. In this District, the improvements being financed consists of the maintenance of local improvements located within the boundaries of the District and include paseos, street trees, landscaped areas and appurtenant facilities that are located throughout the District and were installed to create a common landscape theme and neighborhood identity for parcels within the District. The improvements are situated within the public rights-of-way of the internal local street network within the District which provides ingress and egress for parcels within the District to access the City's system of arterial streets. City residents and traffic from parcels not within the District do not use the internal local street network or paseos except for the express purpose of accessing properties located within the District, and therefore do not benefit from the improvements. Only parcels which are within the District and proximate to the improvements and within the District are being assessed. Accordingly, there is a direct physical and visual nexus between each parcel being assessed and the improvements to be funded by the assessment that does not exist for parcels outside of the District boundary and that is particular and distinct from that shared by the public at large. Under these circumstances, all of the benefits conferred are direct and local in nature, and provide a benefit to only those parcels located within the boundaries of the District. Based upon this, it has been determined that there is no quantifiable general benefit to the surrounding community and the public in general from the maintenance of the improvements within the boundaries of the District, and therefore no portion of the project costs should be attributed to general benefit. Special Benefit The maintenance and servicing of the improvements within the District (which are described in the Description of Improvements and Services Section of this report) are for the benefit of the properties within the District and, as such, confer a special and direct benefit to parcels within the District by: •improving the livability, appearance, and desirability for properties within the boundaries of the District, and •ensuring that improvements do not reach a state of deterioration or disrepair so as to be materially detrimental to properties within the District, and •providing beautification, shade and overall enhancement to properties within the District. Page 367 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 6-R – City of Rancho Cucamonga 16 Fiscal Year 2023/24 ATTACHMENT 5 The above mentioned items affect the assessed property in a way that is particular and distinct from their effect on other parcels and that real property in general and the public at large do not share. They contribute to a specific enhancement of the properties within the District. Since these improvements, including the community trails, were installed and are maintained specifically for the properties within the District, only properties within the District receive a special benefit and are assessed for said maintenance. Method of Assessment Spread Each of the parcels within the District is deemed to receive special benefit from the improvements. Each parcel that has a special benefit conferred upon it as a result of the maintenance and operation of improvements is identified and the proportionate special benefit derived by each identified parcel is determined in relationship to the entire costs of the maintenance and operation of the improvements. To assess special benefit appropriately, it is necessary to relate the different type of parcel improvements to each other. The EBU method of apportionment uses the single-family home as the basic unit of assessment. A single-family home equals one EBU. Every other land-use is converted to EBUs based on an assessment formula that equates to the property's specific development status, type of development (land-use), and size of the property, as compared to a single-family home. Vacant parcels are assigned an EBU value of 0.25 EBU's per acre because they receive a lesser benefit from the improvements until such time as development occurs. Publicly owned school parcels are also assigned an EBU value of 0.25 EBU's per acre in recognition of the limited benefit they receive from the improvements which are provided for the use and benefit of the residential units within the District, and the benefit conferred upon other parcels within the District by the open space and landscaping maintained by the School District on their parcels which might be used by properties within the District under joint use agreements between the School District and the City. There are two benefit zones within the District: Zone 1 and Zone 2. Parcels in Zone 2 are assigned 0.75 EBU per dwelling unit due to the reduction in special benefit they receive as a result of their location relative to the majority of the improvements maintained by the District. Zone 2 parcels are on the far east and west side of the District. Therefore, parcels within Zone 2 do not receive the same special benefit from the improvements due to their proximity, as parcels within Zone 1 which are assigned 1.00 EBU per dwelling unit and are generally located adjacent to or in close proximity to the improvements. The following table provides the weighting factors applied to various land-use types, as assigned by County use code, to determine each parcel's EBU assignment. Page 368 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 6-R – City of Rancho Cucamonga 17 Fiscal Year 2023/24 ATTACHMENT 5 Land-Use Equivalent Dwelling Units Prope rty T ype (County Use Code )EBU Value M ultiplie r Single Family Res idential - Zone 1 1.00 Parc el Single Family Res idential - Zone 2 0.75 Parc el School 0.25 Acre Undeveloped 0.25 Acre The use of the latest County Assessor's Secured Roll shall be the basis for the Property Type determination and units/acreage assignments, unless better data is available to the City. In addition, if any parcel within the District is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, the Property Type and EBU assignment shall be based on the correct parcel number and/or new parcel number(s) County use code and subsequent property information. If a single parcel has changed to multiple parcels, the EBU assignment and assessment amount applied to each of the new parcels will be recalculated rather than spread the proportionate share of the original assessment. The following table summarizes the Fiscal Year 2023/24 maximum allowable assessment rates for the District: Prope rty T ype (County Use Code ) M aximum Allowable Asse ssme nt Rate pe r EBU Actual Asessment Rate pe r EBU T otal Units/Acre s T otal EBUs Single Family Residential - Zone 1 $490.21 $490.21 966.00 966.00 Single Family Residential - Zone 2 $490.21 $490.21 310.00 232.50 School $490.21 $490.21 5.35 1.34 Undeveloped $490.21 $490.21 0.00 0.00 The total amount of maintenance and incidental costs for maintaining the landscaping and community trail improvements is assessed to the individual parcels of real property within the District in proportion to the special benefit received by such parcels of real property. The proposed individual assessments are shown on the assessment roll in this report. Cost of Living Inflator Each fiscal year beginning Fiscal Year 2011/12, the maximum allowable assessment amount may be increased by the lesser of 3.0% or the percentage change in the year ending February preceding the start of the Fiscal Year of the Consumer Price Index for all Urban Consumers (CPI-U), for the Riverside – San Bernardino – Ontario Consumer Price Index area. If for any reason the percentage change is negative the maximum allowable assessment would not be decreased by reason of such negative percentage change and would remain at the amount as computed on the previous fiscal year regardless of any CPI adjustment. The annual assessment cannot exceed the actual costs to operate the District in any given year. If operating costs are Page 369 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 6-R – City of Rancho Cucamonga 18 Fiscal Year 2023/24 ATTACHMENT 5 such that the maximum assessment amount is not needed, the City would levy only what is needed for that year. The actual assessment rate for Fiscal Year 2023/24 will increase from $475.93 to $490.21 per single-family residence zone 1 and from $356.95 to $367.66 per single family residence zone 2, a CPI increase of 3.0% as compared to Fiscal Year 2022/23. ASSESSMENT DIAGRAM An Assessment Diagram for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the San Bernardino County Assessor Office, at the time this report was prepared, and are incorporated by reference herein and made part of this Engineer's Report. Page 370 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 6-R – City of Rancho Cucamonga 19 Fiscal Year 2023/24 ATTACHMENT 5 Page 371 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 6-R – City of Rancho Cucamonga 20 Fiscal Year 2023/24 ATTACHMENT 5 ASSESSMENT ROLL AND ANNEXATIONS Assessment Roll The assessment roll is a listing of the assessment for Fiscal Year 2023/24 apportioned to each lot or parcel, as shown on the last equalized roll of the Assessor of the County of San Bernardino. The following table summarizes the Fiscal Year 2023/24 actual assessments for the District: Prope rty T ype (County Use Code ) Actual Asse ssme nt Rate pe r EBU T otal Units/Acre s T otal EBUs T otal Asse ssment Single Family Residential - Zone 1 $490.21 966.00 966.00 $473,542.86 Single Family Residential - Zone 2 $490.21 310.00 232.50 113,974.60 School $490.21 5.35 1.34 655.70 Undeveloped $490.21 0.00 0.00 0.00 T otals 1,281.35 1,199.84 $588,173.16 A copy of the full assessment roll is available for review in the City Clerk's office. Annexations There were no effective annexations for Fiscal Year 2023/24. Page 372 of 715 ATTACHMENT 6 Annual Engineer’s Report Fiscal Year 2023/24 City of Rancho Cucamonga Landscape Maintenance District No. 7 (North Etiwanda) Page 373 of 715 CITY OF RANCHO CUCAMONGA LANDSCAPE MAINTENANCE DISTRICT NO. 7 (NORTH ETIWANDA) 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909.477.2700 Fax: 909.477.2845 CITY COUNCIL L. Dennis Michael, Mayor Lynne B. Kennedy, Mayor Pro Tem Ryan A. Hutchison, Council Member Kristine D. Scott, Council Member Ashley N. Stickler, Council Member CITY STAFF John R. Gillison, City Manager Elisa Cox, Assistant City Manager Jason C. Welday, Director of Engineering Services/City Engineer William Wittkopf, Public Works Director Noah Daniels, Finance Director Page 374 of 715 TABLE OF CONTENTS ENGINEER’S LETTER 1 INTRODUCTION 3 Reason for Assessment 3 Process for Annual Assessment 3 PLANS AND SPECIFICATIONS 4 Description of the Boundaries of the District 4 Description of Improvements and Services 4 Map of Improvements 11 ESTIMATE OF COSTS 13 District Budget 13 Definitions of Budget Items 15 METHOD OF ASSESSMENT 16 Overview 16 General Benefit 17 Special Benefit 17 Method of Assessment Spread 18 ASSESSMENT DIAGRAM 19 ASSESSMENT ROLL AND ANNEXATIONS 21 Assessment Roll 21 Annexations 21 Page 375 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 7 – City of Rancho Cucamonga 1 Fiscal Year 2023/24 ATTACHMENT 6 ENGINEER’S LETTER WHEREAS, on June 7, 2023, the City Council of Rancho Cucamonga (the “City”), under the Landscape and Lighting Act of 1972 (the “1972 Act”) adopted its Resolution No. 2023-055, a Resolution Initiating Proceedings for the Levy of Annual Assessments for Landscape Maintenance District No. 7 (North Etiwanda) (the “District”); and WHEREAS, the Resolution Initiating Proceedings directed staff to prepare and file an Annual Engineer’s Report for Fiscal Year 2023/24 pursuant to the requirements of the 1972 Act. The Annual Engineer’s Report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the maintenance, operations and servicing of the improvements for the District for the referenced fiscal year, a diagram for the District showing the area and properties proposed to be assessed, and an assessment of the estimated costs of the maintenance, operations and servicing of the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received; and NOW THEREFORE, the following assessment is proposed to be authorized in order to pay the estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the boundaries of the District in proportion to the special benefit received. The following table summarizes the proposed assessment. Fiscal Year 2023/24 Budget Expe nditure s Pers onnel Servic es 246,530$ Operations and Maintenanc e 1,204,620 Capital Expenditures 164,000 T otal Expe nditure s Budge t 1,615,150 Re v e nue s Taxes : Es tim ated As s essm ents , Net of Estimated Delinquenc ies 955,850 Antic ipated Prior Year Delinquencies Collec tion 11,540 Subtotal - Taxes 967,390 Other Revenues 59,750 T otal Re v e nue s Budge t 1,027,140 Contribution to/(Use of) Fund Balance (588,010)$ Total District EBU Count 3,113.00 Ac tual Asses s m ent per EBU 307.05$ Maxim um Allowable As s ement per EBU 307.05$ Page 376 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 7 – City of Rancho Cucamonga 2 Fiscal Year 2023/24 ATTACHMENT 6 In making the assessments contained herein pursuant to the 1972 Act: 1. I have identified all parcels which will have a special benefit conferred upon them from the improvement described in the Special Benefit Section of this Annual Engineer’s Report (the “Specially Benefited Parcels”). For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is included in this Annual Engineer’s Report. 2. I have evaluated the costs and expenses of the improvements upon the Specially Benefited Parcels. In making such evaluation: a. The proportionate special benefit derived by each Specially Benefited Parcel from the improvements was determined in relationship to the entirety of the maintenance costs of the improvements; b. No assessment has been imposed on any Specially Benefited Parcel which exceeds the reasonable cost of the proportional special benefit conferred on such parcel from the improvements; and c. Any general benefits from the improvements have been separated from the special benefits and only special benefits have been assessed. I, the undersigned, respectfully submit the enclosed Annual Engineer’s Report and, to the best of my knowledge, information and belief, I certify that the Annual Engineer’s Report and Assessment Diagram included herein have been prepared and computed in accordance with the order of the City Council of the City of Rancho Cucamonga and the Assessment Law. Jason C. Welday Director of Engineering Services/City Engineer Page 377 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 7 – City of Rancho Cucamonga 3 Fiscal Year 2023/24 ATTACHMENT 6 INTRODUCTION Reason for Assessment Approval of the assessment covered by this Engineer’s Report will generate the revenue necessary to: Provide for the maintenance and servicing of the improvements described in this Engineer’s Report. Maintenance may include, but is not limited to, all of the following: the upkeep, repair, removal or replacement of all or any part of any improvement or facility such as paseos, community trails, fencing and irrigation systems, and providing for the growth, vigor and care of the trees and landscape plant materials. Servicing means the furnishing of electricity, gas or other illuminating energy for the lighting of landscape or appurtenant facilities. This shall also include material, vehicle, equipment, capital improvements and administrative costs associated with the annual administration and operation of the District. Process for Annual Assessment The City cannot levy and collect annual assessments within the District without complying with the procedures specified in the 1972 Act. On an annual basis, an Engineer’s Report must be prepared which contains a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. The City Council must also adopt a resolution of intention which: •Declares the intention of the City Council to levy and collect assessments within the District for the fiscal year stated therein. •Generally describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements. •Refers to the District by its distinctive designation and indicate the general location of the District. •Refers to the Engineer’s Report, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. •Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment. •States whether the assessment is proposed to increase from the previous year. If the assessments are to be levied in the same or lesser amounts than the maximum assessment amount approved, the City Clerk shall give notice by causing the resolution of intention to be published. Any interested person may, prior to the conclusion of the public Page 378 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 7 – City of Rancho Cucamonga 4 Fiscal Year 2023/24 ATTACHMENT 6 hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. During the course or upon conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including the improvements, to the zones within the District, and the proposed diagram or the proposed assessment. The City Council, upon conclusion of the public hearing must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the assessment. If the assessment to be levied exceeds the maximum assessment amount previously approved, the City must comply with the procedures specified in Article XIII D and Proposition 218. The voters in the State of California in November 1996 added Article XIII D to the California Constitution imposing, among other requirements, the necessity for the City to conduct an assessment ballot procedure to enable the owners of each property on which assessments are proposed to be enacted or increased, the opportunity to express their support for, or opposition to the proposed assessment or increase in such assessment. PLANS AND SPECIFICATIONS The District provides for the administration, maintenance, operations, and servicing of various improvements located within the public right-of-way and dedicated easements within the boundaries of the District. Description of the Boundaries of the District The District is located in the City of Rancho Cucamonga, State of California. The boundaries of the District are generally described as that area of the City known as North Etiwanda, which is generally bounded by the 210 Freeway on the south, I-15 Freeway on the west, and City limits on the north and east. Typically, parcels have been annexed to the District as they have been developed. Reference is also made to the Assessment Diagram included in this Report. Description of Improvements and Services The improvements are the maintenance and servicing of the paseos, parkways, median islands, street trees, parks, landscaped sites and appurtenant facilities that are throughout the District. These improvements are located within the street right-of-ways and dedicated public easements which are within the boundaries of the District. The landscaping maintenance includes, but is not limited to, the pruning, fertilizing, mowing, weeding, pest control, removal of trash/debris, and irrigation of the trees, shrubs, vines, ground cover, and turf. Maintenance of associated improvements and facilities, such as community trails, fencing and irrigation systems, includes but is not limited to, grading and replacement of trail surfacing, trail fence repair and Page 379 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 7 – City of Rancho Cucamonga 5 Fiscal Year 2023/24 ATTACHMENT 6 replacement, steel fence painting, repair and replacement, and irrigation systems control, adjustment, trouble-shooting, repair and replacement. Services include personnel, materials, contracting services, utilities, capital projects and all necessary costs associated with the maintenance, replacement and repair required to keep the improvements in a healthy, vigorous and satisfactory condition. In addition, it is the City's intention to continue to use cost effective materials, including the future ability to replace landscaping with drought resistant or low water use plants, in order to lower expenses of the District. The breakdown of maintained areas is as follows: Parks: Etiwanda Creek Park. Site #Descriptive Location EN-1 The north side of Wilson Ave from San Sevaine Rd to Ridgeline Pl. The east side of Ridgeline Pl from Wilson Ave to Arcadia Way. Ground Cover area:27,325 square feet Turf area:19,334 square feet Hardscape area: 840 square feet EN-2 The Metropolitan Water District easement on the south side of Crescenta Way from San Marino Way to Ridgeline Pl. Ground Cover area:38,104 square feet Turf area:41,250 square feet Hardscape area: 9,000 square feet EN-3 The Wilson Ave median from Wardman Bullock Rd to San Sevaine Rd. Ground Cover area: 9,016 square feet Hardscape area:11,088 square feet EN-4 The Planters on the north side of the drainage easement that is between and parallel to Highland Ave and Arapaho Rd from Etiwanda Ave east to the end. Ground Cover area:63,972 square feet EN-5 The south side of Wilson Ave from 1,115 feet west of San Sevaine Rd to 205 feet east of San Sevaine Rd. The east side of San Sevaine Rd from Wilson Ave to Young’s Canyon Rd. Ground Cover area:45,584 square feet Turf area: 3,527 square feet EN-6 The north side of Wilson Ave from Wardman Bullock Rd to Ridgeline Pl. The west side of Ridgeline Pl from Wilson Ave to 120 feet north of Arcadia Way. Ground Cover area:29,226 square feet Turf area:15,136 square feet Hardscape area: 1,300 square feet Page 380 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 7 – City of Rancho Cucamonga 6 Fiscal Year 2023/24 ATTACHMENT 6 EN-7 The parkway on the eastside of Wardman Bullock Rd from Wilson Ave to 857 feet north of Glendora Dr. The cobblestone between the tract wall and the flood wall will be handled for debris pickup and weed control on an as needed basis. Ground Cover area:10,268 square feet Hardscape area:31,549 square feet EN-8 The south side of Crescenta Way from Ridgeline Pl to Crestline Pl. Ground Cover area:50,305 square feet Turf area:35,960 square feet Hardscape area:10,000 square feet EN-9 The paseo from Meadowbrook Ct to Rock Creek Rd. Ground Cover area:1,400 square feet Turf area:6,555 square feet Hardscape area:2,820 square feet EN-10 The paseo from Etiwanda Ave to Pacific Crest Pl. The west side of Etiwanda Ave from 175 feet north of N Rim Way to 171 feet south of Golden Prairie Dr. Ground Cover area:49,020 square feet Turf area: 4,445 square feet Hardscape area:13,026 square feet EN-11 The paseo south of Ridgecrest Dr to southern boundary of Tract 14139. This site is temporarily maintained by another contractor and was deleted from the contract as of July 16, 2001; however, this site is still the City's property. Ground Cover area:3,548 square feet Turf area: 800 square feet Hardscape area:4,280 square feet EN-12 The cul-de-sac on the north side of Ridgecrest Dr at Etiwanda Creek Channel. Ground Cover area:1,870 square feet Turf area: 700 square feet Hardscape area: 450 square feet EN-13 The north side of Wilson Ave from 574 feet west of Cherry Ave to the channel east of San Sevaine Rd. The Wilson Ave median from Cherry Ave to San Sevaine Rd. The east side of San Sevaine Rd from Wilson Ave to 136 feet north of Crescenta Way. Ground Cover area:46,611 square feet Turf area: 5,037 square feet Page 381 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 7 – City of Rancho Cucamonga 7 Fiscal Year 2023/24 ATTACHMENT 6 EN-14 The west side of San Sevaine Rd from 150 feet north of Wilson Ave to 136 feet north of Crescenta Way. Ground Cover area:55,166 square feet Turf area: 235 square feet Hardscape area: 6,975 square feet EN-15 The north side of Young’s Canyon Rd from 500 feet east of Koch Pl to 692 feet west of Koch Pl. The south side of Young’s Canyon Rd from 349 feet east of Koch Pl to 692 feet west of Koch Pl. The east and west side of Koch Pl place from Young’s Canyon Rd to 132 feet north of Young’s Canyon Rd. The west side of Koch Pl from Young’s Canyon Rd to 132 feet south of Young’s Canyon Rd. The east side of Koch Pl from 82 feet south of Young’s Canyon Rd to Young’s Canyon Rd. The trailhead north east of the east end of Young’s Canyon Rd to the south end of San Sevaine Rd Horse Trail. The south end of San Sevaine Rd Horse from the trail head to 254 feet north of trailhead. Ground Cover area:42,925 square feet Hardscape area:14,308 square feet EN-16 The east side of Wardman Bullock Rd from 225 feet south of San Segundo Dr to 80 feet north of Dona Way. Ground Cover area: 2,056 square feet Hardscape area: 3,450 square feet EN-17 The north side of Colonbero Rd from San Sevaine Rd Channel to Guidera Dr. The south side of Colonbero Rd from San Sevaine Rd Channel to 400 feet north of Guidera Dr. The north side of Aggazzotti Rd from Colonbero Rd to 475 feet east of Colonbero Rd. This site has a pump which will be adjusted and maintained by City personnel. Ground Cover area:43,241 square feet Hardscape area:29,125 square feet EN-18 The north side of Aggazzotti Rd from San Antonio Dr to San Sevaine Rd. The west side of San Sevaine Rd from Aggazzotti Rd to 702 feet south of Aggazzotti Rd. The east side of San Sevaine Rd from 702 feet south of Aggazzotti Rd to Regina Dr. Ground Cover area:47,823 square feet Hardscape area:30,986 square feet EN-19 The south side of Wilson Ave from Etiwanda Ave to Estates Way. Ground Cover area:45,727 square feet Hardscape area:19,229 square feet Page 382 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 7 – City of Rancho Cucamonga 8 Fiscal Year 2023/24 ATTACHMENT 6 EN-20 The south side of Wilson Ave form Bluegrass Ave to Estates Way. Ground Cover area:85,155 square feet Hardscape area:48,784 square feet EN-21 The north side of Wilson Ave from Etiwanda Ave to Cervantes Pl. The Wilson Ave median from Etiwanda Ave to Cervantes Pl. The westside of Etiwanda Ave from Wilson Ave to Del Norte Pl. Ground Cover area:88,795 square feet Hardscape area:27,128 square feet EN-22 The north and south side of Vintage Dr from 165 feet east of Countrywood Pl to 338 feet west of Countrywood Pl. Ground Cover area:13,603 square feet Hardscape area: 7,365 square feet EN-23 The north side of Wilson Ave and median from Etiwanda Ave west to Etiwanda Ave. The east side of Etiwanda Ave from Wilson Ave to 1150 feet north of Wilson Ave. Ground Cover area:32,027 square feet Hardscape area:29,567 square feet EN-24 The north side of Vintage Dr from 360 feet west of Ascot Pl to 230 feet east of Countrywood Pl. The south side of Vintage Dr from Ascot Pl to 500 feet east of Countrywood Pl. Ground Cover area:34,707 square feet Hardscape area:92,600 square feet EN-25 The east side of Bluegrass Ave from Banyan St to 610 feet north of Banyan St. Ground Cover area:4,054 square feet Hardscape area:5,819 square feet EN-26 The south side of Banyan St from Bluegrass Ave to Greenwood Pl. Ground Cover area:6,240 square feet Hardscape area:3,200 square feet EN-27 The south side of Banyan St from Laurel Blossom Pl to Etiwanda Ave. Ground Cover area:1,703 square feet Hardscape area:8,417 square feet Page 383 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 7 – City of Rancho Cucamonga 9 Fiscal Year 2023/24 ATTACHMENT 6 EN-28 The north side of Wilson Ave from Cervantes Pl to 1715 feet west of Cervantes Pl. The west side of Cervantes Pl from Carmel Knolls Dr to Wilson Ave. The paseo from Wilson Ave to Tejas Ct. The median on Wilson Ave from Cervantes Pl to Bluegrass Ave. The following temporary landscape: There is one planter on the west side of Altura Dr at Tejas Ct. There are five planters on the south side of Tejas Ct from Altura Dr to 195 feet east of Altura Dr. Ground Cover area:25,048 square feet Hardscape area:22,532 square feet EN-29 The south side of Banyan St from 787 feet west of East Ave to East Ave. The west side of East Ave from Banyan St to 600 feet south of Blue Gum. The east side of East Ave from Banyan St to 537 feet south of Banyan St. Ground Cover area:16,111 square feet Hardscape area:15,774 square feet EN-30 The east side of Bluegrass Ave from 257 feet south of Churchill Dr to 418 feet north of Churchill Dr. Ground Cover area:9,303 square feet Hardscape area:5,302 square feet EN-31 The south side of Banyan St from 375 feet south of Cashew Way to Rose Way. The north side of Banyan St from 435 feet west of Peak Pl to Wardman Bullock Rd. Ground Cover area:53,000 square feet Hardscape area:26,855 square feet EN-32 The landscaping south of the equestrian trail from 210 feet west of Grovewood Pl to 1,170 feet east of Grovewood Pl. Ground Cover area:6,900 square feet EN-33 The north side of Young’s Canyon Rd from 600 feet east of Banyan St to Banyan St. The east side of Wardman Bullock Rd from Banyan St to Wilson Ave. The south side of Wilson Ave from Wardman Bullock Rd to 635 feet east of Fields Pl. Ground Cover area:66,601 square feet Hardscape area:46,332 square feet EN-34 The west side of Wardman Bullock Rd from Wilson Ave to Banyan St. Parkview Way from Wardman Bullock Rd to Soledad Way. Ground Cover area:67,021 square feet Hardscape area:34,045 square feet EN-35 The north side of Day Creek Blvd from Etiwanda Ave to Indian Wells Pl. Ground Cover area:160,737 square feet Hardscape area:128,254 square feet Page 384 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 7 – City of Rancho Cucamonga 10 Fiscal Year 2023/24 ATTACHMENT 6 EN-36 The south side of Day Creek Blvd from 380 feet north of Coyote Dr to Etiwanda Ave. The west side of Etiwanda Ave from Day Creek Blvd to 170 feet north of N Rim Way. The west side of Day Creek Blvd from 380 feet north of Coyote Dr to Indian Wells Pl. Ground Cover area:58,398 square feet Hardscape area:68,127 square feet EN-37 The east side of East Ave from 235 feet south of Hunt Club Dr to 375 feet north of Hunt Club Dr. Ground Cover area:5,559 square feet Hardscape area:5,231 square feet EN-38 The west side of East Ave from 236 feet north of Philly Dr to 245 feet south of Philly Dr. Ground Cover area:4,605 square feet Hardscape area:3,394 square feet EN-39 The south side of Banyan St from Golden Lock Pl to Raindrop Pl. Ground Cover area 6,024 square feet Hardscape area: 330 square feet EN-40 The west side of Wardman Bullock Rd from Colonbero Rd to Breeders Cup Dr. The east side of Wardman Bullock Rd from Colonbero Rd to 385 feet south of Colonbero Rd. Ground Cover area:28,527 square feet Hardscape area:21,723 square feet EN-41 The north side of Colonbero Rd from Wardman Bullock Rd to Ambleside Pl. The south side of Colonbero Rd from 150 feet east of Wardman Bullock Rd to Ambleside Pl. The east side of Ambleside Pl from Colonbero Rd to 700 feet north of Colonbero Rd. Ground Cover area:17,065 square feet Hardscape area:12,990 square feet EN-42 The west side of Wardman Bullock Rd from 778 feet north of Coral Sky Dr to Wilson Ave. The north side of Wilson Ave from Wardman Bullock Rd to 218 feet west of Compass Pl. The east and west sides of Compass Pl. from Wilson Ave to the entrance monuments. Ground Cover area:31,809 square feet Hardscape area:34,321 square feet Page 385 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 7 – City of Rancho Cucamonga 11 Fiscal Year 2023/24 ATTACHMENT 6 EN-43 The east side of East Av from 230 feet south of Copley Dr to 655 feet north of Copley Dr. The Landscape on the south side of the trail 655 feet north of Copley Dr from East Av to Gypsum Dr. The planters on the north and south side of the trail on Gypsum Dr from Golden Lock Pl to Raindrop Pl. Ground Cover area:14,954 square feet Hardscape area:18, 007 square feet Parks, ground cover, shrubs and turf areas that make up parkways, median islands and paseos are maintenance under contract by a private landscape maintenance company. Map of Improvements The following page shows the map of landscaping improvements, including irrigation sites and community trails, to be maintained using District funds. Page 386 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 7 – City of Rancho Cucamonga 12 Fiscal Year 2023/24 ATTACHMENT 6 Page 387 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 7 – City of Rancho Cucamonga 13 Fiscal Year 2023/24 ATTACHMENT 6 ESTIMATE OF COSTS The estimated costs of administration, maintenance, operations, and servicing the improvements as described in the Plans and Specifications are summarized below. Each year, as part of the District levy calculation process, the costs and expenses are reviewed and the annual costs are projected for the following fiscal year. District Budget Fis c al Year 2023/24 Budget Expe nditure s Pe rsonne l Se rv ice s: Regular Salaries 143,520$ Part-tim e Salaries 24,170 Fringe Benefits 78,840 Subtotal - Pe rsonne l 246,530 Ope rations and M ainte nance : Operations and Maintenanc e: O & M/General 49,470 O & M/Facilities 5,000 Em ergenc y Equipm ent and Vehicle Rental 6,200 Subtotal - Operations and Maintenanc e 60,670 Contrac t Servic es : Contrac t Services /General 530,610 Contrac t Services /Fac ilities 3,030 Tree Maintenanc e 78,410 Subtotal - Contract Services 612,050 Utilities : W ater Utilities 372,150 Elec tric Utilities 19,820 Subtotal - Utilities 391,970 As s es s ment Adminis tration 11,070 Admin./General Overhead 128,180 Other Expenses 680 Subtotal - Ope rations and M ainte nance 1,204,620 Capital Expe nditure s: Capital Outlay - Equipment 12,000 Capital Outlay - Improvement Other Than Building 152,000 Subtotal - Capital Expe nditure s 164,000 T otal Expe nditure s Budge t 1,615,150$ Page 388 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 7 – City of Rancho Cucamonga 14 Fiscal Year 2023/24 ATTACHMENT 6 Fis c al Year 2023/24 Budget Re v e nue s T axe s: Es tim ated As s es s m ents, Net of Estim ated Delinquenc ies 955,850$ Antic ipated Prior Year Delinquenc ies Collec tion 11,540 Subtotal - T axe s 967,390 Othe r Re v e nue s: Interes t Earnings 12,460 Other Rental/Leas e Inc om e 42,860 Park Maintenanc e Fees 1,250 Sports Lighting Fees 3,180 Subtotal - Othe r Re v e nue s:59,750 T otal Re v e nue s Budge t 1,027,140 Contribution to/(Use of) Fund Balance (588,010)$ Total Gros s Es tim ated Ass es s m ents 955,846.65$ Total District EBU Count 3,113.00 Ac tual Ass es s m ent per EBU - Fisc al Year 2023/24 307.05$ Maxim um Allowable As s es sment per EBU - Fis c al Year 2023/24 307.05$ The maximum allowable assessment per Equivalent Benefit Unit (EBU) listed in the District budget above, is the amount which was approved in Fiscal Year 1996/97 and subsequent District annexations. Each year, prior to the assessments being placed on the tax roll, the City will review the budget and determine the amount needed to maintain the improvements for the upcoming fiscal year. The actual assessment per EBU will be based on the estimated costs of maintenance, available fund balance and maximum allowable assessment with the goal of maintaining the improvements in a satisfactory and healthy condition. The actual assessment amount may be lower than the maximum allowable assessment; however, it may not exceed the maximum unless the increase is approved by the property owners in accordance with Proposition 218. It is the intent of the City to maintain an Operating Reserve which shall not exceed the estimated costs of maintenance and servicing of the improvements prior to December 10 of the fiscal year, or when the City expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. The reserve balance information for the District is as follows: Operating Res erve Es tim ated Reserve Fund Balanc e, June 30, 2023 744,316$ Contribution to/(Us e of) Reserve - Fisc al Year 2023/24 (588,010) Es tim ated Reserve Fund Balanc e, June 30, 2024 156,306$ Page 389 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 7 – City of Rancho Cucamonga 15 Fiscal Year 2023/24 ATTACHMENT 6 Definitions of Budget Items The following definitions describe the costs and expenses included in the District Budget: Personnel Services: This item includes the costs attributed to the salaries of all full-time and part-time employees dedicated to maintenance of the District improvements. Additionally, this includes benefits available to City employees. Operations and Maintenance: This item includes the costs of City staff to perform maintenance duties within the boundaries of the District. Contract Services: This item includes the contract costs of a landscape maintenance company responsible for the ongoing maintenance of the District improvements. Utilities: This item includes the costs to furnish electricity, water, and telephone services, as required, for the operation and maintenance of the sprinklers and irrigation controllers in the District. Assessment Administration: This item includes the cost of all particular departments and staff of the City, as well as consultants, for providing the administration, coordination and management of District services, operations, and incidental expenses related to the District. This item also includes creation of an annual Engineer's Report, resolutions and placing the assessment amounts onto the County tax roll each year, along with responding to any public inquiries and future Proposition 218 balloting proceedings. General Overhead: This item includes the costs of all central services departments of the City for providing the coordination of District services, inspections, annual bid management, responding to public concerns, public education, accounting, auditing and procedural matters associated with the District. This item also includes an allocation for general City staff time for administrative functions and systems that provide for a functional and operational District within the City's administrative structure. Capital Outlay: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include new monuments, irrigation systems, and other large improvements. Other Revenues: This includes other revenues that are not levied through the annual assessments that support the District operations. These other revenues may include: interest earnings, other rental/lease income (cell site tower leases), Park Maintenance Fees, Sports Field User Group Rentals, and parking permits (Metrolink Station paid parking). Page 390 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 7 – City of Rancho Cucamonga 16 Fiscal Year 2023/24 ATTACHMENT 6 METHOD OF ASSESSMENT Overview Pursuant to the 1972 Act and Article XIII D, all parcels that have a special benefit conferred upon them as a result of the maintenance and operation of improvements and services shall be identified, and the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entire costs of the maintenance and operation of improvements. The 1972 Act, permits the establishment of assessment districts for the purpose of providing certain public improvements which include the operation, maintenance and servicing of landscaping improvements. Section 22573 of the 1972 Act requires that maintenance assessments must be levied according to benefit rather than according to assessed value. This Section states: The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefit to be received by each such lot or parcel from the improvements. The determination of whether or not a lot or parcel will benefit from the improvements shall be made pursuant to the Improvement Act of 1911 (Division 7 commencing with Section 5000) [of the Streets and Highways Code, State of California]. Section 22547 of the 1972 Act also permits the designation of zones of benefit within any individual assessment district if "by reasons or variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvement". Article XIII D, Section 4(a) of the California Constitution limits the amount of any assessment to the proportional special benefit conferred on the property. Article XIII D also provides that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment. Exempted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements and rights-of-ways, public greenbelts and public parkways. The net amount to be assessed may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels. Proposition 218, approved by the voters in November 1996, requires the City to separate general benefit from special benefit, where only special benefit is assessed. Page 391 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 7 – City of Rancho Cucamonga 17 Fiscal Year 2023/24 ATTACHMENT 6 General Benefit Section 4 of Article XIII D of the California Constitution provides that once a local agency which proposes to impose assessments on property has identified those parcels that will have special benefits conferred upon them and upon which an assessment will be imposed, the local agency must next "separate the general benefits from the special benefits conferred," and only the special benefits can be included in the amount of the assessments imposed. In this District, the improvements being financed consists of the maintenance of local improvements located within the boundaries of the District and include paseos, street trees, landscaped areas and appurtenant facilities that are located throughout the District and were installed to create a common landscape theme and neighborhood identity for parcels within the District. The improvements are situated within the public rights-of-way of the internal local street network within the District which provides ingress and egress for parcels within the District to access the City’s system of arterial streets. City residents and traffic from parcels not within the District do not use the internal local street network or paseos except for the express purpose of accessing properties located within the District, and therefore do not benefit from the improvements. Only parcels which are within the District and proximate to the improvements and within the District are being assessed. Accordingly, there is a direct physical and visual nexus between each parcel being assessed and the improvements to be funded by the assessment that does not exist for parcels outside of the District boundary and that is particular and distinct from that shared by the public at large. Under these circumstances, all of the benefits conferred are direct and local in nature, and provide a benefit to only those parcels located within the boundaries of the District. Based upon this, it has been determined that there is no quantifiable general benefit to the surrounding community and the public in general from the maintenance of the improvements within the boundaries of the District, and therefore no portion of the project costs should be attributed to general benefit. Special Benefit The maintenance and servicing of the improvements within the District (which are described in the Description of Improvements and Services Section of this report) are for the benefit of the properties within the District and, as such, confer a special and direct benefit to parcels within the District by: •improving the livability, appearance, and desirability for properties within the boundaries of the District, and •ensuring that improvements do not reach a state of deterioration or disrepair so as to be materially detrimental to properties within the District, and •providing beautification, shade and overall enhancement to properties within the District. The above mentioned items affect the assessed property in a way that is particular and distinct from their effect on other parcels and that real property in general and the public at large do not Page 392 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 7 – City of Rancho Cucamonga 18 Fiscal Year 2023/24 ATTACHMENT 6 share. They contribute to a specific enhancement of the properties within the District. Since these improvements, including the community trails, were installed and are maintained specifically for the properties within the District, only properties within the District receive a special benefit and are assessed for said maintenance. Method of Assessment Spread Each of the parcels within the District is deemed to receive special benefit from the improvements. Each parcel that has a special benefit conferred upon it as a result of the maintenance and operation of improvements is identified and the proportionate special benefit derived by each identified parcel is determined in relationship to the entire costs of the maintenance and operation of the improvements. When the District was formed, Article XIID and Proposition 218 had not yet been passed. Upon the passage of Article XIID and the subsequent passage of the Proposition Omnibus Implementation Act, new rules were put into place. Due to the changes in legal requirements, as property annexed to the District after the passage of the Assessment Law, the description of the method of assessment became more refined, however, the assessment per parcel has remained the same since 1996/97 Fiscal Year. Further, no parcel included in the District formation or annexations prior to when the language was refined are now being levied differently than they were at the time the District was formed or the parcels were annexed. To assess special benefit appropriately, it is necessary to relate the different type of parcel improvements to each other. The EBU method of apportionment uses the single-family home as the basic unit of assessment. A single-family home equals one EBU. The following table provides the weighting factors to determine each parcel's EBU assignment. Land-Use Equivalent Dwelling Units Prope rty T ype (County Use Code )EBU Value M ultiplie r Single Fam ily Res idential 1.00 Parcel The use of the latest County Assessor's Secured Roll shall be the basis for the Property Type determination and units/acreage assignments, unless better data is available to the City. In addition, if any parcel within the District is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, the Property Type and EBU assignment shall be based on the correct parcel number and/or new parcel number(s) County use code and subsequent property information. If a single parcel has changed to multiple parcels, the EBU assignment and assessment amount applied to each of the new parcels will be recalculated rather than spread the proportionate share of the original assessment. Page 393 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 7 – City of Rancho Cucamonga 19 Fiscal Year 2023/24 ATTACHMENT 6 The following table summarizes the Fiscal Year 2023/24 maximum allowable assessment rates for the District: Prope rty T ype (County Use Code ) M aximum Allowable Asse ssment Rate pe r EBU Actual Ase ssment Rate per EBU T otal Units/Acres T otal EBUs Single Family Residential $307.05 $307.05 3,113.00 3,113.00 The total amount of maintenance and incidental costs for maintaining the landscaping and community trail improvements is assessed to the individual parcels of real property within the District in proportion to the special benefit received by such parcels of real property. The proposed individual assessments are shown on the assessment roll in this report. ASSESSMENT DIAGRAM An Assessment Diagram for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the San Bernardino County Assessor Office, at the time this report was prepared, and are incorporated by reference herein and made part of this Engineer's Report. Page 394 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 7 – City of Rancho Cucamonga 20 Fiscal Year 2023/24 ATTACHMENT 6 Page 395 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 7 – City of Rancho Cucamonga 21 Fiscal Year 2023/24 ATTACHMENT 6 ASSESSMENT ROLL AND ANNEXATIONS Assessment Roll The assessment roll is a listing of the assessment for Fiscal Year 2023/24 apportioned to each lot or parcel, as shown on the last equalized roll of the Assessor of the County of San Bernardino. The following table summarizes the Fiscal Year 2023/24 actual assessments for the District: Prope rty T ype (County Use Code ) Actual Asse ssme nt Rate per EBU T otal Units/Acre s T otal EBUs T otal Assessme nt Single Family Res idential $307.05 3,113.00 3,113.00 $955,846.65 T otals 3,113.00 3,113.00 $955,846.65 A copy of the full assessment roll is available for review in the City Clerk's office. Annexations The following annexations are effective for Fiscal Year 2023/24: Apn Annexation Date Proje ct Name T otal Units/ Acre s T otal EBUs Prope rty T ype 0225-191-09 and -17 06/01/22 SUBTT20344 17.00 17.00 Single-Family Res Page 396 of 715 ATTACHMENT 7 Annual Engineering Report Fiscal Year 2023/24 City of Rancho Cucamonga Landscape Maintenance District No. 8 (South Etiwanda) Page 397 of 715 CITY OF RANCHO CUCAMONGA LANDSCAPE MAINTENANCE DISTRICT NO. 8 (SOUTH ETIWANDA) 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909.774.2700 Fax: 909.774.2845 CITY COUNCIL L. Dennis Michael, Mayor Lynne B. Kennedy, Mayor Pro Tem Ryan A. Hutchison, Council Member Kristine D. Scott, Council Member Ashley N. Stickler, Council Member CITY STAFF John R. Gillison, City Manager Elisa Cox, Assistant City Manager Jason C. Welday, Director of Engineering Services/City Engineer William Wittkopf, Public Works Director Noah Daniels, Finance Director Page 398 of 715 TABLE OF CONTENTS ENGINEER’S LETTER 1 INTRODUCTION 3 Reason for Assessment 3 Process for Annual Assessment 3 PLANS AND SPECIFICATIONS 4 Description of the Boundaries of the District 4 Description of Improvements and Services 4 Map of Improvements 5 ESTIMATE OF COSTS 7 District Budget 7 Definitions of Budget Items 9 METHOD OF ASSESSMENT 10 Overview 10 General Benefit 11 Special Benefit 11 Method of Assessment Spread 12 ASSESSMENT DIAGRAM 13 ASSESSMENT ROLL AND ANNEXATIONS 15 Assessment Roll 15 Annexations 15 Page 399 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 8 – City of Rancho Cucamonga 1 Fiscal Year 2023/24 ATTACHMENT 7 ENGINEER’S LETTER WHEREAS, on June 7, 2023, the City Council of Rancho Cucamonga (the “City”), under the Landscape and Lighting Act of 1972 (the “1972 Act”) adopted its Resolution No. 2023-055, a Resolution Initiating Proceedings for the Levy of Annual Assessments for Landscape Maintenance District No. 8 (South Etiwanda) (the “District”); and WHEREAS, the Resolution Initiating Proceedings directed staff to prepare and file an Annual Engineer’s Report for Fiscal Year 2023/24 pursuant to the requirements of the 1972 Act. The Annual Engineer’s Report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the maintenance, operations and servicing of the improvements for the District for the referenced fiscal year, a diagram for the District showing the area and properties proposed to be assessed, and an assessment of the estimated costs of the maintenance, operations and servicing of the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received; and NOW THEREFORE, the following assessment is proposed to be authorized in order to pay the estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the boundaries of the District in proportion to the special benefit received. The following table summarizes the proposed assessment. Fiscal Year 2023/24 Budget Expe nditure s Pers onnel Servic es 6,240$ Operations and Maintenanc e 32,950 T otal Expe nditure s Budge t 39,190 Re v e nue s Taxes : Es tim ated As s essm ents , Net of Estimated Delinquenc ies 34,270 Antic ipated Prior Year Delinquencies Collec tion 370 Subtotal - Taxes 34,640 Other Revenues 700 T otal Re v e nue s Budge t 35,340 Contribution to/(Use of) Fund Balance (3,850)$ Total District EBU Count 226.22 Ac tual Asses s m ent per EBU 151.45$ Maxim um Allowable As s ement per EBU 151.45$ Page 400 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 8 – City of Rancho Cucamonga 2 Fiscal Year 2023/24 ATTACHMENT 7 In making the assessments contained herein pursuant to the 1972 Act: 1. I have identified all parcels which will have a special benefit conferred upon them from the improvement described in the Special Benefit Section of this Annual Engineer’s Report (the “Specially Benefited Parcels”). For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is included in this Annual Engineer’s Report. 2. I have evaluated the costs and expenses of the improvements upon the Specially Benefited Parcels. In making such evaluation: a. The proportionate special benefit derived by each Specially Benefited Parcel from the improvements was determined in relationship to the entirety of the maintenance costs of the improvements; b. No assessment has been imposed on any Specially Benefited Parcel which exceeds the reasonable cost of the proportional special benefit conferred on such parcel from the improvements; and c. Any general benefits from the improvements have been separated from the special benefits and only special benefits have been assessed. I, the undersigned, respectfully submit the enclosed Annual Engineer’s Report and, to the best of my knowledge, information and belief, I certify that the Annual Engineer’s Report and Assessment Diagram included herein have been prepared and computed in accordance with the order of the City Council of the City of Rancho Cucamonga and the Assessment Law. Jason C. Welday Director of Engineering Services/City Engineer Page 401 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 8 – City of Rancho Cucamonga 3 Fiscal Year 2023/24 ATTACHMENT 7 INTRODUCTION Reason for Assessment Approval of the assessment covered by this Engineer’s Report will generate the revenue necessary to: Provide for the maintenance and servicing of the improvements described in this Engineer’s Report. Maintenance may include but is not limited to, all of the following: the upkeep, repair, removal or replacement of all or any part of any improvement or facility such as paseos, community trails, fencing and irrigation systems, and providing for the growth, vigor and care of the trees and landscape plant materials. Servicing means the furnishing of electricity, gas or other illuminating energy for the lighting of landscape or appurtenant facilities. This shall also include material, vehicle, equipment, capital improvements and administrative costs associated with the annual administration and operation of the District. Process for Annual Assessment The City cannot levy and collect annual assessments within the District without complying with the procedures specified in the 1972 Act. On an annual basis, an Engineer’s Report must be prepared which contains a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. The City Council must also adopt a resolution of intention which: •Declares the intention of the City Council to levy and collect assessments within the District for the fiscal year stated therein. •Generally describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements. •Refers to the District by its distinctive designation and indicate the general location of the District. •Refers to the Engineer’s Report, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. •Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment. •States whether the assessment is proposed to increase from the previous year. If the assessments are to be levied in the same or lesser amounts than the maximum assessment amount approved, the City Clerk shall give notice by causing the resolution of intention to be published. Any interested person may, prior to the conclusion of the public hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. During the course or upon Page 402 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 8 – City of Rancho Cucamonga 4 Fiscal Year 2023/24 ATTACHMENT 7 conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including the improvements, to the zones within the District, and the proposed diagram or the proposed assessment. The City Council, upon conclusion of the public hearing must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the assessment. If the assessment to be levied exceeds the maximum assessment amount previously approved, the City must comply with the procedures specified in Article XIII D and Proposition 218. The voters in the State of California in November 1996 added Article XIII D to the California Constitution imposing, among other requirements, the necessity for the City to conduct an assessment ballot procedure to enable the owners of each property on which assessments are proposed to be enacted or increased, the opportunity to express their support for, or opposition to, the proposed assessment or increase in such assessment. PLANS AND SPECIFICATIONS The District provides for the administration, maintenance, operations, and servicing of various improvements located within the public right-of-way and dedicated easements within the boundaries of the District. Description of the Boundaries of the District The District is located in the City of Rancho Cucamonga, State of California. The boundaries of the District are generally described as that area known as South Etiwanda, which is south of the I-210 Freeway along Fisher Dr, east of East Ave, including the south side of Highstone Manor Ct, the south side of Smokestone St, and to the San Bernardino County Flood Control drainage basin on east side. Typically, parcels have been annexed to the District as they have been developed. Reference is also made to the Assessment Diagram included in this Report. Description of Improvements and Services The improvements maintained by the District include the paseos, community trails, trees, landscaped sites and appurtenant facilities that are throughout the District. These improvements are located within the street right-of-ways and dedicated public easements which are within the boundaries of the District. The landscaping maintenance includes, but is not limited to, the pruning, fertilizing, mowing, weeding, pest control, removal of trash/debris, and irrigation of the trees, shrubs, vines, ground cover, and turf. Maintenance of associated improvements and facilities, such as community trails, fencing and irrigation systems, includes but is not limited to, grading and replacement of trail surfacing, trail fence repair and replacement, steel fence painting, repair and replacement, and irrigation systems control, adjustment, trouble-shooting, repair and replacement. Services include personnel, materials, contracting services, utilities, capital projects Page 403 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 8 – City of Rancho Cucamonga 5 Fiscal Year 2023/24 ATTACHMENT 7 and all necessary costs associated with the maintenance, replacement and repair required to keep the improvements in a healthy, vigorous and satisfactory condition. In addition, it is the City's intention to continue to use cost effective materials, including the future ability to replace landscaping with drought resistant or low water use plants, in order to lower expenses of the District. The breakdown of maintained areas is as follows: Site #Descriptive Location SE-1 The east side of East Ave from 480 feet south of Catalpa St to 182 feet north of Catalpa St. The north and south side of Catalpa St from East Ave to Brownstone Pl. The west side of Brownstone Pl from Catalpa St to 150 feet south of Catalpa St. Not including the frontage parkway at 6649 East Ave. Ground Cover area:10,355 square feet Turf area: 6,258 square feet Hardscape area: 4,050 square feet SE-2 The south side of Fisher Dr from 361 feet east of East Ave to 210 feet east of Starstone Pl. Ground Cover area: 9,366 square feet Hardscape area: 4,074 square feet SE-3 The south side of Fisher Dr from 860 feet west of Mulberry St to Mulberry St. Ground Cover area: 3,676 square feet Hardscape area: 6,910 square feet SE-4 The east of side of East Ave from 700 feet south of Fisher Dr to Fisher Dr. The south side of Fisher Dr from East Ave to 358 feet east of East Ave. Ground Cover area: 5,174 square feet Hardscape area: 10,694 square feet Ground cover, shrubs and turf areas that make up parkways, median islands and paseos are maintained under contract by a private landscape maintenance company. With a Majority Protest for the Proposition 218 Ballot Initiative in September 2010, the City stopped maintaining the north side of Fisher Dr and reduced the service level to a B. Map of Improvements The following page shows the map of landscaping improvements, including irrigation sites and community trails, to be maintained using District funds. Page 404 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 8 – City of Rancho Cucamonga 6 Fiscal Year 2023/24 ATTACHMENT 7 Page 405 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 8 – City of Rancho Cucamonga 7 Fiscal Year 2023/24 ATTACHMENT 7 ESTIMATE OF COSTS The estimated costs of administration, maintenance, operations, and servicing the improvements as described in the Plans and Specifications are summarized below. Each year, as part of the District levy calculation process, the costs and expenses are reviewed and the annual costs are projected for the following fiscal year. District Budget Fis c al Year 2023/24 Budget Expe nditure s Pe rsonne l Se rv ice s: Regular Salaries 4,160$ Fringe Benefits 2,080 Subtotal - Pe rsonne l 6,240 Ope rations and M ainte nance : Operations and Maintenanc e: O & M/General 1,500 Subtotal - Operations and Maintenanc e 1,500 Contrac t Servic es : Contrac t Services /General 11,670 Tree Maintenanc e 9,000 Subtotal - Contract Services 20,670 Utilities : W ater Utilities 9,950 Elec tric Utilities 520 Subtotal - Utilities 10,470 Admin./General Overhead 310 Subtotal - Ope rations and M ainte nance 32,950 T otal Expe nditure s Budge t 39,190$ Page 406 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 8 – City of Rancho Cucamonga 8 Fiscal Year 2023/24 ATTACHMENT 7 Fisc al Year 2023/24 Budget Re v e nue s T axe s: Estim ated As s es s ments , Net of Estim ated Delinquenc ies 34,270$ Antic ipated Prior Year Delinquencies Collection 370 Subtotal - T axe s 34,640 Othe r Re v e nue s: Interes t Earnings 700 T otal Re v e nue s Budge t 35,340 Contribution to/(Use of) Fund Balance (3,850)$ Total Gros s Estim ated As s es s ments 34,261.02$ Total District EBU Count 226.22 Actual Asses sm ent per EBU - Fisc al Year 2023/24 151.45$ Maxim um Allowable As ses s m ent per EBU - Fis cal Year 2023/24 151.45$ The maximum allowable assessment per Equivalent Benefit Unit (EBU) listed in the District budget above, is the amount which was approved when the District was formed, and subsequent District annexations. Each year, prior to the assessments being placed on the tax roll, the City will review the budget and determine the amount needed to maintain the improvements for the upcoming fiscal year. The actual assessment per EBU will be based on the estimated costs of maintenance, available fund balance and maximum allowable assessment with the goal of maintaining the improvements in a satisfactory and healthy condition. The actual assessment amount may be lower than the maximum allowable assessment; however, it may not exceed the maximum unless the increase is approved by the property owners in accordance with Proposition 218. It is the intent of the City to maintain an Operating Reserve which shall not exceed the estimated costs of maintenance and servicing of the improvements prior to December 10 of the fiscal year, or when the City expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. The reserve balance information for the District is as follows: Operating Res erve Es tim ated Reserve Fund Balanc e, June 30, 2023 45,348$ Contribution to/(Us e of) Reserve - Fisc al Year 2023/24 (3,850) Es tim ated Reserve Fund Balanc e, June 30, 2024 41,498$ Page 407 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 8 – City of Rancho Cucamonga 9 Fiscal Year 2023/24 ATTACHMENT 7 Definitions of Budget Items The following definitions describe the costs and expenses included in the District Budget: Personnel Services: This item includes the costs attributed to the salaries of all full-time and part-time employees dedicated to maintenance of the District improvements. Additionally, this includes benefits available to City employees. Operations and Maintenance: This item includes the costs of City staff to perform maintenance duties within the boundaries of the District. Contract Services: This item includes the contract costs of a landscape maintenance company responsible for the ongoing maintenance of the District improvements. Utilities: This item includes the costs to furnish electricity, water, and telephone services, as required, for the operation and maintenance of the sprinklers and irrigation controllers in the District. Assessment Administration: This item includes the cost of all particular departments and staff of the City, as well as consultants, for providing the administration, coordination and management of District services, operations, and incidental expenses related to the District. This item also includes creation of an annual Engineer's Report, resolutions and placing the assessment amounts onto the County tax roll each year, along with responding to any public inquiries and future Proposition 218 balloting proceedings. General Overhead: This item includes the costs of all central services departments of the City for providing the coordination of District services, inspections, annual bid management, responding to public concerns, public education, accounting, auditing and procedural matters associated with the District. This item also includes an allocation for general City staff time for administrative functions and systems that provide for a functional and operational District within the City's administrative structure. Capital Outlay: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include new monuments, irrigation systems, and other large improvements. Other Revenues: This includes other revenues that are not levied through the annual assessments that support the District operations. These other revenues may include: interest earnings, other rental/lease income (cell site tower leases), Park Maintenance Fees, Sports Field User Group Rentals, and parking permits (Metrolink Station paid parking). Page 408 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 8 – City of Rancho Cucamonga 10 Fiscal Year 2023/24 ATTACHMENT 7 METHOD OF ASSESSMENT Overview Pursuant to the 1972 Act and Article XIII D, all parcels that have a special benefit conferred upon them as a result of the maintenance and operation of improvements and services shall be identified, and the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entire costs of the maintenance and operation of improvements. The 1972 Act, permits the establishment of assessment districts for the purpose of providing certain public improvements which include the operation, maintenance and servicing of landscaping improvements. Section 22573 of the 1972 Act requires that maintenance assessments must be levied according to benefit rather than according to assessed value. This Section states: The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefit to be received by each such lot or parcel from the improvements. The determination of whether or not a lot or parcel will benefit from the improvements shall be made pursuant to the Improvement Act of 1911 (Division 7 commencing with Section 5000) [of the Streets and Highways Code, State of California]. Section 22547 of the 1972 Act also permits the designation of zones of benefit within any individual assessment district if "by reasons or variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvement". Article XIII D, Section 4(a) of the California Constitution limits the amount of any assessment to the proportional special benefit conferred on the property. Article XIII D also provides that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment. Exempted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements and rights-of-ways, public greenbelts and public parkways. The net amount to be assessed may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels. Proposition 218, approved by the voters in November 1996, requires the City to separate general benefit from special benefit, where only special benefit is assessed. Page 409 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 8 – City of Rancho Cucamonga 11 Fiscal Year 2023/24 ATTACHMENT 7 General Benefit Section 4 of Article XIII D of the California Constitution provides that once a local agency which proposes to impose assessments on property has identified those parcels that will have special benefits conferred upon them and upon which an assessment will be imposed, the local agency must next "separate the general benefits from the special benefits conferred," and only the special benefits can be included in the amount of the assessments imposed. In this District, the improvements being financed consists of the maintenance of local improvements located within the boundaries of the District and include paseos, street trees, landscaped areas and appurtenant facilities that are located throughout the District and were installed to create a common landscape theme and neighborhood identity for parcels within the District. The improvements are situated within the public rights-of-way of the internal local street network within the District which provides ingress and egress for parcels within the District to access the City’s system of arterial streets. City residents and traffic from parcels not within the District do not use the internal local street network or paseos except for the express purpose of accessing properties located within the District, and therefore do not benefit from the improvements. Only parcels which are within the District and proximate to the improvements and within the District are being assessed. Accordingly, there is a direct physical and visual nexus between each parcel being assessed and the improvements to be funded by the assessment that does not exist for parcels outside of the District boundary and that is particular and distinct from that shared by the public at large. Under these circumstances, all of the benefits conferred are direct and local in nature, and provide a benefit to only those parcels located within the boundaries of the District. Based upon this, it has been determined that there is no quantifiable general benefit to the surrounding community and the public in general from the maintenance of the improvements within the boundaries of the District, and therefore no portion of the project costs should be attributed to general benefit. Special Benefit The maintenance and servicing of the improvements within the District (which are described in the Description of Improvements and Services Section of this report) are for the benefit of the properties within the District and, as such, confer a special and direct benefit to parcels within the District by: •improving the livability, appearance, and desirability for properties within the boundaries of the District, and •ensuring that improvements do not reach a state of deterioration or disrepair so as to be materially detrimental to properties within the District, and •providing beautification, shade and overall enhancement to properties within the District. Page 410 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 8 – City of Rancho Cucamonga 12 Fiscal Year 2023/24 ATTACHMENT 7 The above mentioned items affect the assessed property in a way that is particular and distinct from their effect on other parcels and that real property in general and the public at large do not share. They contribute to a specific enhancement of the properties within the District. Since these improvements, including the community trails, were installed and are maintained specifically for the properties within the District, only properties within the District receive a special benefit and are assessed for said maintenance. Method of Assessment Spread Each of the parcels within the District is deemed to receive special benefit from the improvements. Each parcel that has a special benefit conferred upon it as a result of the maintenance and operation of improvements is identified and the proportionate special benefit derived by each identified parcel is determined in relationship to the entire costs of the maintenance and operation of the improvements. To assess special benefit appropriately, it is necessary to relate the different type of parcel improvements to each other. The EBU method of apportionment uses the single-family home as the basic unit of assessment. A single-family home equals one EBU. Every other land-use is converted to EBUs based on an assessment formula that equates to the property's specific development status, type of development (land-use), and size of the property, as compared to a single-family home. The following table provides the weighting factors applied to various land-use types, as assigned by County use code, to determine each parcel's EBU assignment. Land-Use Equivalent Dwelling Units Prope rty T ype (County Use Code )EBU Value Multiplie r Single Fam ily Residential 1.00 Parcel Non-Res idential 2.00 Acre The use of the latest County Assessor's Secured Roll shall be the basis for the Property Type determination and units/acreage assignments, unless better data is available to the City. In addition, if any parcel within the District is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, the Property Type and EBU assignment shall be based on the correct parcel number and/or new parcel number(s) County use code and subsequent property information. If a single parcel has changed to multiple parcels, the EBU assignment and assessment amount applied to each of the new parcels will be recalculated rather than spread the proportionate share of the original assessment. Page 411 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 8 – City of Rancho Cucamonga 13 Fiscal Year 2023/24 ATTACHMENT 7 The following table summarizes the Fiscal Year 2023/24 maximum allowable assessment rates for the District: Property T ype (County Use Code ) M aximum Allowable Assessme nt Rate pe r EBU Actual Ase ssment Rate per EBU T otal Units/Acres T otal EBUs Single Family Residential $151.45 $151.45 199.00 199.00 Non-Res idential 151.45 151.45 13.61 27.22 The total amount of maintenance and incidental costs for maintaining the landscaping and community trail improvements is assessed to the individual parcels of real property within the District in proportion to the special benefit received by such parcels of real property. The proposed individual assessments are shown on the assessment roll in this report. ASSESSMENT DIAGRAM An Assessment Diagram for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the San Bernardino County Assessor Office, at the time this report was prepared, and are incorporated by reference herein and made part of this Engineer's Report. Page 412 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 8 – City of Rancho Cucamonga 14 Fiscal Year 2023/24 ATTACHMENT 7 Page 413 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 8 – City of Rancho Cucamonga 15 Fiscal Year 2023/24 ATTACHMENT 7 ASSESSMENT ROLL AND ANNEXATIONS Assessment Roll The assessment roll is a listing of the assessment for Fiscal Year 2023/24 apportioned to each lot or parcel, as shown on the last equalized roll of the Assessor of the County of San Bernardino. The following table summarizes the Fiscal Year 2023/24 actual assessments for the District: Prope rty T ype (County Use Code ) Actual Assessme nt Rate per EBU T otal Units/Acre s T otal EBUs T otal Asse ssme nt Single Family Res idential $151.45 199.00 199.00 $30,138.55 Non-Residential 151.45 13.61 27.22 4,122.47 T otals 212.61 226.22 $34,261.02 A copy of the full assessment roll is available for review in the City Clerk's office. Annexations There were no effective annexations for Fiscal Year 2023/24. Page 414 of 715 ATTACHMENT 8 Annual Engineer’s Report Fiscal Year 2023/24 City of Rancho Cucamonga Landscape Maintenance District No. 9 (Lower Etiwanda) Page 415 of 715 CITY OF RANCHO CUCAMONGA LANDSCAPE MAINTENANCE DISTRICT NO. 9 (LOWER ETIWANDA) 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909.477.2700 Fax: 909.477.2845 CITY COUNCIL L. Dennis Michael, Mayor Lynne B. Kennedy, Mayor Pro Tem Ryan A. Hutchison, Council Member Kristine D. Scott, Council Member Ashley N. Stickler, Council Member CITY STAFF John R. Gillison, City Manager Elisa Cox, Assistant City Manager Jason C. Welday, Director of Engineering Services/City Engineer William Wittkopf, Public Works Director Noah Daniels, Finance Director Page 416 of 715 TABLE OF CONTENTS ENGINEER’S LETTER 1 INTRODUCTION 3 Reason for Assessment 3 Process for Annual Assessment 3 PLANS AND SPECIFICATIONS 4 Description of the Boundaries of the District 4 Description of Improvements and Services 4 Map of Improvements 7 ESTIMATE OF COSTS 9 District Budget 9 Definitions of Budget Items 11 METHOD OF ASSESSMENT 12 Overview 12 General Benefit 13 Special Benefit 13 Method of Assessment Spread 14 Cost of Living Inflator 15 ASSESSMENT DIAGRAM 16 ASSESSMENT ROLL AND ANNEXATIONS 18 Assessment Roll 18 Annexations 18 Page 417 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 9 – City of Rancho Cucamonga 1 Fiscal Year 2023/24 ATTACHMENT 8 ENGINEER’S LETTER WHEREAS, on June 7, 2023, the City Council of Rancho Cucamonga (the “City”), under the Landscape and Lighting Act of 1972 (the “1972 Act”) adopted its Resolution No. 2023-055, a Resolution Initiating Proceedings for the Levy of Annual Assessments for Landscape Maintenance District No. 9 (Lower Etiwanda) (the “District”); and WHEREAS, the Resolution Initiating Proceedings directed staff to prepare and file an Annual Engineer’s Report for Fiscal Year 2023/24 pursuant to the requirements of the 1972 Act. The Annual Engineer’s Report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the maintenance, operations and servicing of the improvements for the District for the referenced fiscal year, a diagram for the District, showing the area and properties proposed to be assessed, and an assessment of the estimated costs of the maintenance, operations and servicing of the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received; and NOW THEREFORE, the following assessment is proposed to be authorized in order to pay the estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the boundaries of the District in proportion to the special benefit received. The following table summarizes the proposed assessment. Fiscal Year 2023/24 Budget Expe nditure s Pers onnel Servic es 369,350$ Operations and Maintenanc e 378,550 Capital Expenditures 1,600 T otal Expe nditure s Budge t 749,500 Re v e nue s Taxes : Es tim ated As s essm ents , Net of Estimated Delinquenc ies 779,040 Antic ipated Prior Year Delinquencies Collec tion 1,380 Subtotal - Taxes 780,420 Other Revenues 36,200 T otal Re v e nue s Budge t 816,620 Contribution to/(Use of) Fund Balance 67,120$ Total District EBU Count 2,497.56 Ac tual Asses s m ent per EBU 311.92$ Maxim um Allowable As s ement per EBU 694.36$ Page 418 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 9 – City of Rancho Cucamonga 2 Fiscal Year 2023/24 ATTACHMENT 8 In making the assessments contained herein pursuant to the 1972 Act: 1. I have identified all parcels which will have a special benefit conferred upon them from the improvement described in the Special Benefit Section of this Annual Engineer’s Report (the “Specially Benefited Parcels”). For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is included in this Annual Engineer’s Report. 2. I have evaluated the costs and expenses of the improvements upon the Specially Benefited Parcels. In making such evaluation: a. The proportionate special benefit derived by each Specially Benefited Parcel from the improvements was determined in relationship to the entirety of the maintenance costs of the improvements; b. No assessment has been imposed on any Specially Benefited Parcel which exceeds the reasonable cost of the proportional special benefit conferred on such parcel from the improvements; and c. Any general benefits from the improvements have been separated from the special benefits and only special benefits have been assessed. I, the undersigned, respectfully submit the enclosed Annual Engineer’s Report and, to the best of my knowledge, information and belief, I certify that the Annual Engineer’s Report and Assessment Diagram included herein have been prepared and computed in accordance with the order of the City Council of the City of Rancho Cucamonga and the Assessment Law. Jason C. Welday Director of Engineering Services/City Engineer Page 419 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 9 – City of Rancho Cucamonga 3 Fiscal Year 2023/24 ATTACHMENT 8 INTRODUCTION Reason for Assessment Approval of the assessment covered by this Engineer’s Report will generate the revenue necessary to: Provide for the maintenance and servicing of the improvements described in this Engineer’s Report. Maintenance may include but is not limited to, all of the following: the upkeep, repair, removal or replacement of all or any part of any improvement or facility such as paseos, community trails, fencing and irrigation systems, and providing for the growth, vigor and care of the trees and landscape plant materials. Servicing means the furnishing of electricity, gas or other illuminating energy for the lighting of landscape or appurtenant facilities. This shall also include material, vehicle, equipment, capital improvements and administrative costs associated with the annual administration and operation of the District. Process for Annual Assessment The City cannot levy and collect annual assessments within the District without complying with the procedures specified in the 1972 Act. On an annual basis, an Engineer’s Report must be prepared which contains a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. The City Council must also adopt a resolution of intention which: •Declares the intention of the City Council to levy and collect assessments within the District for the fiscal year stated therein. •Generally describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements. •Refers to the District by its distinctive designation and indicate the general location of the District. •Refers to the Engineer’s Report, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. •Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment. •States whether the assessment is proposed to increase from the previous year. If the assessments are to be levied in the same or lesser amounts than the maximum assessment amount approved, the City Clerk shall give notice by causing the resolution of intention to be published. Any interested person may, prior to the conclusion of the public Page 420 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 9 – City of Rancho Cucamonga 4 Fiscal Year 2023/24 ATTACHMENT 8 hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. During the course or upon conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including the improvements, to the zones within the District, and the proposed diagram or the proposed assessment. The City Council, upon conclusion of the public hearing must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the assessment. If the assessment to be levied exceeds the maximum assessment amount previously approved, the City must comply with the procedures specified in Article XIII D and Proposition 218. The voters in the State of California in November 1996 added Article XIII D to the California Constitution imposing, among other requirements, the necessity for the City to conduct an assessment ballot procedure to enable the owners of each property on which assessments are proposed to be enacted or increased, the opportunity to express their support for, or opposition to, the proposed assessment or increase in such assessment. PLANS AND SPECIFICATIONS The District provides for the administration, maintenance, operations, and servicing of various improvements located within the public right-of-way and dedicated easements within the boundaries of the District. Description of the Boundaries of the District The District is located in the City of Rancho Cucamonga, State of California. The boundaries of the District are generally described as that area known as Lower Etiwanda, which is south of Victoria St, north of Foothill Blvd, generally east of Etiwanda Ave and the I-15 Freeway and west of East Ave. Typically, parcels have been annexed to the District as they have developed. Reference is also made to the Assessment Diagram included in this Report. Description of Improvements and Services The improvements maintained by the District include the paseos, community trails, trees, landscaped sites and appurtenant facilities that are throughout the District. These improvements are located within the street right-of-ways and dedicated public easements which are within the boundaries of the District. The landscaping maintenance includes, but is not limited to, the pruning, fertilizing, mowing, weeding, pest control, removal of trash/debris, and irrigation of the trees, shrubs, vines, ground cover, and turf. Maintenance of associated improvements and facilities, such as community trails, fencing and irrigation systems, includes but is not limited to, grading and replacement of trail surfacing, trail fence repair and replacement, steel fence painting, repair and replacement, and irrigation systems control, adjustment, trouble-shooting, Page 421 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 9 – City of Rancho Cucamonga 5 Fiscal Year 2023/24 ATTACHMENT 8 repair and replacement. Services include personnel, materials, contracting services, utilities, capital projects and all necessary costs associated with the maintenance, replacement and repair required to keep the improvements in a healthy, vigorous and satisfactory condition. In addition, it is the City's intention to continue to use cost effective materials, including the future ability to replace landscaping with drought resistant or low water use plants, in order to lower expenses of the District. The breakdown of maintained areas is as follows: Parks: Garcia Park (formerly known as South Etiwanda Park). Site #Descriptive Location 9-1 The west side of East Ave from 380 feet north of Chateau Dr to 290 feet south of Chateau Dr. Ground Cover area:7,244 square feet Hardscape area:7,525 square feet 9-2 The west side of East Ave from 339 feet north of Brookfield Dr to 157 north of Brookfield Dr. Brookfield Dr from East Ave to Oakcrest Ct. The east side of Oakcrest Ct to 137 feet north of Brookfield Dr. Ground Cover area:2,390 square feet Hardscape area:6,874 square feet 9-3 The west side of East Ave from 790 feet north of Highfield Dr to 256 feet south of Highfield Dr. Ground Cover area: 8,769 square feet Hardscape area:10,669 square feet 9-4 The west side of East Ave from 295 feet north of Via Veneto Dr To Via Veneto Dr. The north side of Via Veneto Dr From East Ave to Dolcetto Pl. The east side of Dolcetto Pl from Via Veneto Dr to Miller Ave. The south side of Miller Ave from 372 feet west of Dolcetto Pl to 240 feet east of Dolcetto Pl. The west side of Dolcetto Pl from Miller Ave to Garcia Dr. The north side of Garcia Dr from Dolcetto Pl to Etiwanda Ave. Ground Cover area:48,612 square feet Hardscape area:28,746 square feet 9-5 The north side of Miller Ave from 429 feet west of Dolcetto Pl to 1029 feet west of Dolcetto Pl. Ground Cover area:6,519 square feet Hardscape area:3,325 square feet Page 422 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 9 – City of Rancho Cucamonga 6 Fiscal Year 2023/24 ATTACHMENT 8 9-6 The north side of Miller Ave from 254 feet east of Dolcetto Pl to 167 feet west of Dolcetto Pl. Ground Cover area:4,089 square feet Hardscape area:2,854 square feet 9-8 The south side of Base Line Rd from Etiwanda Ave to Shelby Pl. The Base Line Rd median from Etiwanda Ave to 473 feet east of Shelby Pl. Ground Cover area:16,395 square feet Hardscape area:14,558 square feet 9-9 The north side of Candlewood St from Exbury Pl to Etiwanda Ave. Ground Cover area:3,362 square feet Hardscape area: 786 square feet 9-10 The north side of Base Line Rd from 522 feet east of Forester Pl to 180 feet west of Forester Pl. The Base Line Rd median from 503 feet east of Forester Pl to 200 feet west of Forester Pl. Ground Cover area:16,930 square feet Hardscape area:13,600 square feet 9-11 The north side of Mueller Ct from 40 feet past the east end of Mueller Ct to 20 feet east of Dicarlo Pl. Ground Cover area:9,420 square feet Hardscape area: 742 square feet 9-12 The north and south sides of Highland Ave from 217 feet west of Norcia Dr to 210 feet east of Dicarlo Pl. Ground Cover area:12,471 square feet Hardscape area:14,445 square feet 9-13 The south side of Carnesi Dr from Etiwanda Ave to 395 feet east of Murietta Ct. Ground Cover area:8,919 square feet Hardscape area:6,203 square feet 9-14 The west side of East Ave from 665 feet north of Miller Ave to Miller Ave. The north side of Miller Ave from East Ave to 667 feet west of East Ave. Ground Cover area: 9,150 square feet Hardscape area:16,226 square feet 9-15 The north side of Base Line Rd from Shelby Pl to 343 feet east of Shelby Pl. Ground Cover area:3,480 square feet Hardscape area:4,638 square feet Page 423 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 9 – City of Rancho Cucamonga 7 Fiscal Year 2023/24 ATTACHMENT 8 9-16 The east side of Dolcetto Pl from Garcia Dr to Via Veneto Dr. The south side of Via Veneto Dr from Dolcetto Pl to East Ave. The west side of East Ave from Via Veneto Dr to 276 feet south of Via Veneto Dr. Ground Cover area:16,310 square feet Hardscape area:13,411 square feet 9-17 The east side of Etiwanda Ave from 145 feet south of Miller Ave to Miller Ave. The south side of Miller Ave from Etiwanda Ave to Three Vines Pl. Ground Cover area: 7,535 square feet Hardscape area: 6,130 square feet FH-17 The Foothill Blvd median from Etiwanda Ave to Cornwell Ct. Ground Cover area:8,275 square feet Ground cover, shrubs and turf areas that make up parkways, median islands and paseos are maintained under contract by a private landscape maintenance company. Parks are maintained by the City’s Park Maintenance Crews. Map of Improvements The following page shows the map of landscaping improvements, including irrigation sites and community trails, to be maintained using District funds. Page 424 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 9 – City of Rancho Cucamonga 8 Fiscal Year 2023/24 ATTACHMENT 8 Page 425 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 9 – City of Rancho Cucamonga 9 Fiscal Year 2023/24 ATTACHMENT 8 ESTIMATE OF COSTS The estimated costs of administration, maintenance, operations, and servicing the improvements as described in the Plans and Specifications are summarized below. Each year, as part of the District levy calculation process, the costs and expenses are reviewed and the annual costs are projected for the following fiscal year. District Budget Fis cal Year 2023/24 Budget Expe nditure s Pe rsonne l Se rv ice s: Regular Salaries 226,890$ Part-time Salaries 22,420 Fringe Benefits 120,040 Subtotal - Pe rsonne l 369,350 Ope rations and Mainte nance : Operations and Maintenanc e: O & M/General 17,800 Em ergenc y Equipment and Vehic le Rental 1,200 Subtotal - Operations and Maintenanc e 19,000 Contract Services : Contrac t Servic es /General 139,970 Tree Maintenanc e 56,650 Subtotal - Contrac t Services 196,620 Utilities: W ater Utilities 81,030 Elec tric Utilities 4,340 Subtotal - Utilities 85,370 Ass es sm ent Adm inis tration 5,240 Adm in./General O verhead 72,320 Subtotal - O pe rations and M ainte nance 378,550 Capital Expe nditure s: Captial Outlay - Equipment 1,600 Subtotal - Capital Expe nditure s 1,600 T otal Expe nditure s Budge t 749,500$ Page 426 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 9 – City of Rancho Cucamonga 10 Fiscal Year 2023/24 ATTACHMENT 8 Fisc al Year 2023/24 Budget Re v e nue s T axe s: Estim ated As s ess ments , Net of Estimated Delinquencies 779,040$ Antic ipated Prior Year Delinquenc ies Collec tion 1,380 Subtotal - T axe s 780,420 Othe r Re v e nue s: Interest Earnings 33,140 Park Maintenanc e Fees 2,950 Sports Field User Group Rentals 110 Subtotal - Othe r Re v e nue s:36,200 T otal Re v e nue s Budge t 816,620 Contribution to/(Use of) Fund Balance 67,120$ Total Gros s Estim ated As s es s ments 779,038.89$ Total District EBU Count 2,497.56 Actual Asses sm ent per EBU - Fisc al Year 2023/24 311.92$ Maxim um Allowable As ses s m ent per EBU - Fis cal Year 2023/24 694.36$ Each year, prior to the assessments being placed on the tax roll, the City will review the budget and determine the amount needed to maintain the improvements for the upcoming fiscal year. The actual assessment per Equivalent Benefit Unit (EBU) will be based on the estimated costs of maintenance, available fund balance and maximum allowable assessment with the goal of maintaining the improvements in a satisfactory and healthy condition. The actual assessment amount may be lower than the maximum allowable assessment; however, it may not exceed the maximum unless the increase is approved by the property owners in accordance with Proposition 218. It is the intent of the City to maintain an Operating Reserve which shall not exceed the estimated costs of maintenance and servicing of the improvements prior to December 10 of the fiscal year, or when the City expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. The reserve balance information for the District is as follows: Operating Res erve Es tim ated Reserve Fund Balanc e, June 30, 2023 1,769,635$ Contribution to/(Us e of) Reserve - Fisc al Year 2023/24 67,120 Es tim ated Reserve Fund Balanc e, June 30, 2024 1,836,755$ Page 427 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 9 – City of Rancho Cucamonga 11 Fiscal Year 2023/24 ATTACHMENT 8 The City has reserve funds that are more than sufficient to cover an estimated six months’ worth of maintenance and servicing costs for the District. When there are excess funds in the District’s reserve account, the excess can be used to lower the annual levy to property owners within the District. The City will continue to annually review the estimated costs and expenses for the District as well as reserve fund levels, in order to determine if future levies can be reduced as well. Definitions of Budget Items The following definitions describe the costs and expenses included in the District Budget: Personnel Services: This item includes the costs attributed to the salaries of all full-time and part-time employees dedicated to maintenance of the District improvements. Additionally, this includes benefits available to City employees. Operations and Maintenance: This item includes the costs of City staff to perform maintenance duties within the boundaries of the District. Contract Services: This item includes the contract costs of a landscape maintenance company responsible for the ongoing maintenance of the District improvements. Utilities: This item includes the costs to furnish electricity, water, and telephone services, as required, for the operation and maintenance of the sprinklers and irrigation controllers in the District. Assessment Administration: This item includes the cost of all particular departments and staff of the City, as well as consultants, for providing the administration, coordination and management of District services, operations, and incidental expenses related to the District. This item also includes creation of an annual Engineer's Report, resolutions and placing the assessment amounts onto the County tax roll each year, along with responding to any public inquiries and future Proposition 218 balloting proceedings. General Overhead: This item includes the costs of all central services departments of the City for providing the coordination of District services, inspections, annual bid management, responding to public concerns, public education, accounting, auditing and procedural matters associated with the District. This item also includes an allocation for general City staff time for administrative functions and systems that provide for a functional and operational District within the City's administrative structure. Capital Outlay: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include new monuments, irrigation systems, and other large improvements. Page 428 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 9 – City of Rancho Cucamonga 12 Fiscal Year 2023/24 ATTACHMENT 8 Other Revenues: This includes other revenues that are not levied through the annual assessments that support the District operations. These other revenues may include: interest earnings, other rental/lease income (cell site tower leases), Park Maintenance Fees, Sports Field User Group Rentals, and parking permits (Metrolink Station paid parking). METHOD OF ASSESSMENT Overview Pursuant to the 1972 Act and Article XIII D. all parcels that have a special benefit conferred upon them as a result of the maintenance and operation of improvements and services shall be identified, and the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entire costs of the maintenance and operation of improvements. The 1972 Act, permits the establishment of assessment districts for the purpose of providing certain public improvements which include the operation, maintenance and servicing of landscaping improvements. Section 22573 of the 1972 Act requires that maintenance assessments must be levied according to benefit rather than according to assessed value. This Section states: The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefit to be received by each such lot or parcel from the improvements. The determination of whether or not a lot or parcel will benefit from the improvements shall be made pursuant to the Improvement Act of 1911 (Division 7 commencing with Section 5000) [of the Streets and Highways Code, State of California]. Section 22547 of the 1972 Act also permits the designation of zones of benefit within any individual assessment district if "by reasons or variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvement". Article XIII D, Section 4(a) of the California Constitution limits the amount of any assessment to the proportional special benefit conferred on the property. Article XIII D also provides that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment. Exempted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements and rights-of-ways, public greenbelts and public parkways. Page 429 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 9 – City of Rancho Cucamonga 13 Fiscal Year 2023/24 ATTACHMENT 8 The net amount to be assessed may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels. Proposition 218, approved by the voters in November 1996, requires the City to separate general benefit from special benefit, where only special benefit is assessed. General Benefit Section 4 of Article XIII D of the California Constitution provides that once a local agency which proposes to impose assessments on property has identified those parcels that will have special benefits conferred upon them and upon which an assessment will be imposed, the local agency must next "separate the general benefits from the special benefits conferred," and only the special benefits can be included in the amount of the assessments imposed. In this District, the improvements being financed consists of the maintenance of local improvements located within the boundaries of the District and include paseos, street trees, landscaped areas and appurtenant facilities that are located throughout the District and were installed to create a common landscape theme and neighborhood identity for parcels within the District. The improvements are situated within the public rights-of-way of the internal local street network within the District which provides ingress and egress for parcels within the District to access the City’s system of arterial streets. City residents and traffic from parcels not within the District do not use the internal local street network or paseos except for the express purpose of accessing properties located within the District, and therefore do not benefit from the improvements. Only parcels which are within the District and proximate to the improvements and within the Assessment District are being assessed. Accordingly, there is a direct physical and visual nexus between each parcel being assessed and the improvements to be funded by the assessment that does not exist for parcels outside of the District boundary and that is particular and distinct from that shared by the public at large. Under these circumstances, all of the benefits conferred are direct and local in nature, and provide a benefit to only those parcels located within the boundaries of the District. Based upon this, it has been determined that there is no quantifiable general benefit to the surrounding community and the public in general from the maintenance of the improvements within the boundaries of the District, and therefore no portion of the project costs should be attributed to general benefit. Special Benefit The maintenance and servicing of the improvements within the District (which are described in the Description of Improvements and Services Section of this report) are for the benefit of the properties within the District and, as such, confer a special and direct benefit to parcels within the District by: •improving the livability, appearance, and desirability for properties within the boundaries of the District, and Page 430 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 9 – City of Rancho Cucamonga 14 Fiscal Year 2023/24 ATTACHMENT 8 •ensuring that improvements do not reach a state of deterioration or disrepair so as to be materially detrimental to properties within the District, and •providing beautification, shade and overall enhancement to properties within the District. The above mentioned items affect the assessed property in a way that is particular and distinct from their effect on other parcels and that real property in general and the public at large do not share. They contribute to a specific enhancement of the properties within the District. Since these improvements, including the community trails, were installed and are maintained specifically for the properties within the District, only properties within the District receive a special benefit and are assessed for said maintenance. Method of Assessment Spread Each of the parcels within the District is deemed to receive special benefit from the improvements. Each parcel that has a special benefit conferred upon it as a result of the maintenance and operation of improvements is identified and the proportionate special benefit derived by each identified parcel is determined in relationship to the entire costs of the maintenance and operation of the improvements. To assess special benefit appropriately, it is necessary to relate the different type of parcel improvements to each other. The EBU method of apportionment uses the single-family home as the basic unit of assessment. A single-family home equals one EBU. Every other land-use is converted to EBUs based on an assessment formula that equates to the property's specific development status, type of development (land-use}, and size of the property, as compared to a single-family home. The following table provides the weighting factors applied to various land-use types, as assigned by County use code, to determine each parcel's EBU assignment. Land-Use Equivalent Dwelling Units Prope rty T ype (County Use Code )EBU Value M ultiplie r Single Family Res idential 1.00 Parcel Multi-Family Residential 1.00 Unit Non-Residential 2.00 Acre The use of the latest County Assessor's Secured Roll shall be the basis for the Property Type determination and units/acreage assignments, unless better data is available to the City. In addition, if any parcel within the District is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, the Property Type and EBU assignment shall be based on the correct parcel number and/or new parcel number(s) County use code and subsequent property information. If a single parcel has changed to multiple parcels, the EBU assignment and assessment amount applied to each of the new parcels will be recalculated rather than spread the proportionate share of the original assessment. Page 431 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 9 – City of Rancho Cucamonga 15 Fiscal Year 2023/24 ATTACHMENT 8 The following summarizes the Fiscal Year 2023/24 maximum allowable assessment rates for the District: Prope rty T ype (County Use Code ) M aximum Allowable Asse ssment Rate pe r EBU Actual Ase ssment Rate per EBU T otal Units/Acres T otal EBUs Single Family Residential $694.36 $311.92 1,080.00 1,080.00 Multi-Fam ily Residential 694.36 311.92 1,381.00 1,381.00 Non-Residential 694.36 311.92 18.28 36.56 The total amount of maintenance and incidental costs for maintaining the landscaping and community trail improvements is assessed to the individual parcels of real property within the District in proportion to the special benefit received by such parcels of real property. The proposed individual assessments are shown on the assessment roll in this report. Cost of Living Inflator Each fiscal year beginning with Fiscal Year 2001/02, the maximum allowable assessment may be increased each year, based upon the Consumer Price Index ("CPI"), All Urban Consumers (CPI-U), for the Riverside – San Bernardino – Ontario Consumer Price Index area, as determined by the United States Department of Labor, Bureau of Labor Statistics, or its successor. The Engineer shall compute the percentage difference between the CPI for March of each year and the CPI for the previous March, and shall then adjust the existing assessment by an amount not to exceed such percentage for the following fiscal year. Should the Bureau of Labor Statistics revise such index or discontinue the preparation of such index, the Engineer shall use the revised index or a comparable system as approved by the City Council for determining fluctuations in the cost of living. If for any reason the percentage change is negative the maximum allowable assessment would not be decreased by reason of such negative percentage change and would remain at the amount as computed on the previous fiscal year regardless of any CPI adjustment. The annual assessment cannot exceed the actual costs to operate the District in any given year. If operating costs are such that the maximum assessment amount is not needed, the City would levy only what is needed for that year. The actual assessment rate for Fiscal Year 2023/24 will remain at $311.92 per single family residence. Page 432 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 9 – City of Rancho Cucamonga 16 Fiscal Year 2023/24 ATTACHMENT 8 ASSESSMENT DIAGRAM An Assessment Diagram for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the San Bernardino County Assessor Office, at the time this report was prepared, and are incorporated by reference herein and made part of this Engineer's Report. Page 433 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 9 – City of Rancho Cucamonga 17 Fiscal Year 2023/24 ATTACHMENT 8 Page 434 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 9 – City of Rancho Cucamonga 18 Fiscal Year 2023/24 ATTACHMENT 8 ASSESSMENT ROLL AND ANNEXATIONS Assessment Roll The assessment roll is a listing of the assessment for Fiscal Year 2023/24 apportioned to each lot or parcel, as shown on the last equalized roll of the Assessor of the County of San Bernardino. The following table summarizes the Fiscal Year 2023/24 actual assessments for the District: Prope rty T ype (County Use Code) Actual Asse ssme nt Rate per EBU T otal Units/Acre s T otal EBUs T otal Asse ssme nt Single Family Residential $311.92 1,080.00 1,080.00 $336,873.60 Multi-Fam ily Residential 311.92 1,381.00 1,381.00 430,761.52 Non-Res idential 311.92 18.28 36.56 11,403.77 T otals 2,479.28 2,497.56 $779,038.89 A copy of the full assessment roll is available for review in the City Clerk's office. Annexations The following annexations are effective for Fiscal Year 2023/24: Apn Annexation Date Proje ct Name T otal Units/ Acre s T otal EBUs Property T ype 1100-201-08 01/19/22 DRC2014-01130 193.00 193.00 Multi-Family Res 1100-191-04 02/02/22 SUBTT20148 131.00 131.00 Multi-Family Res Page 435 of 715 ATTACHMENT 9 Annual Engineer’s Report Fiscal Year 2023/24 City of Rancho Cucamonga Landscape Maintenance District No. 10 (Rancho Etiwanda) Page 436 of 715 CITY OF RANCHO CUCAMONGA LANDSCAPE MAINTENANCE DISTRICT NO. 10 (RANCHO ETIWANDA) 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909.477.2700 Fax: 909.477.2845 CITY COUNCIL L. Dennis Michael, Mayor Lynne B. Kennedy, Mayor Pro Tem Ryan A. Hutchison, Council Member Kristine D. Scott, Council Member Ashley N. Stickler, Council Member CITY STAFF John R. Gillison, City Manager Elisa Cox, Assistant City Manager Jason C. Welday, Director of Engineering Services/City Engineer William Wittkopf, Public Works Director Noah Daniels, Finance Director Page 437 of 715 TABLE OF CONTENTS ENGINEER’S LETTER 1 INTRODUCTION 3 Reason for Assessment 3 Process for Annual Assessment 3 PLANS AND SPECIFICATIONS 4 Description of the Boundaries of the District 4 Description of Improvements and Services 4 Map of Improvements 7 ESTIMATE OF COSTS 9 District Budget 9 Definitions of Budget Items 11 METHOD OF ASSESSMENT 12 Overview 12 General Benefit 13 Special Benefit 13 Method of Assessment Spread 14 Cost of Living Inflator 15 ASSESSMENT DIAGRAM 15 ASSESSMENT ROLL and ANNEXATIONS 17 Assessment Roll 17 Annexations 17 Page 438 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 10 – City of Rancho Cucamonga 1 Fiscal Year 2023/24 ATTACHMENT 9 ENGINEER’S LETTER WHEREAS, on June 7, 2023, the City Council of Rancho Cucamonga (the “City”), under the Landscape and Lighting Act of 1972 (the “1972 Act”) adopted its Resolution No. 2023-055, a Resolution Initiating Proceedings for the Levy of Annual Assessments for Landscape Maintenance District No. 10 (Rancho Etiwanda) (the “District”); and WHEREAS, the Resolution Initiating Proceedings directed staff to prepare and file an Annual Engineer’s Report for Fiscal Year 2023/24 pursuant to the requirements of the 1972 Act. The Annual Engineer’s Report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the maintenance, operations and servicing of the improvements for the District for the referenced fiscal year, a diagram for the District, showing the area and properties proposed to be assessed, and an assessment of the estimated costs of the maintenance, operations and servicing of the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received; and NOW THEREFORE, the following assessment is proposed to be authorized in order to pay the estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the boundaries of the District in proportion to the special benefit received. The following table summarizes the proposed assessment. Fiscal Year 2023/24 Budget Expe nditure s Pers onnel Servic es 294,950$ Operations and Maintenanc e 528,680 Capital Expenditures 390,400 T otal Expe nditure s Budge t 1,214,030 Re v e nue s Taxes : Es tim ated As s essm ents , Net of Estimated Delinquenc ies 664,310 Antic ipated Prior Year Delinquencies Collec tion 5,550 Subtotal - Taxes 669,860 Other Revenues 53,050 T otal Re v e nue s Budge t 722,910 Contribution to/(Use of) Fund Balance (491,120)$ Total District EBU Count 786.00 Ac tual Asses s m ent per EBU 845.17$ Maxim um Allowable As s es sm ent per EBU 1,068.49$ Page 439 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 10 – City of Rancho Cucamonga 2 Fiscal Year 2023/24 ATTACHMENT 9 In making the assessments contained herein pursuant to the 1972 Act: 1. I have identified all parcels which will have a special benefit conferred upon them from the improvement described in the Special Benefit Section of this Annual Engineer’s Report (the “Specially Benefited Parcels”). For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is included in this Annual Engineer’s Report. 2. I have evaluated the costs and expenses of the improvements upon the Specially Benefited Parcels. In making such evaluation: a. The proportionate special benefit derived by each Specially Benefited Parcel from the improvements was determined in relationship to the entirety of the maintenance costs of the improvements; b. No assessment has been imposed on any Specially Benefited Parcel which exceeds the reasonable cost of the proportional special benefit conferred on such parcel from the improvements; and c. Any general benefits from the improvements have been separated from the special benefits and only special benefits have been assessed. I, the undersigned, respectfully submit the enclosed Annual Engineer’s Report and, to the best of my knowledge, information and belief, I certify that the Annual Engineer’s Report and Assessment Diagram included herein have been prepared and computed in accordance with the order of the City Council of the City of Rancho Cucamonga and the Assessment Law. Jason C. Welday Director of Engineering Services/City Engineer Page 440 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 10 – City of Rancho Cucamonga 3 Fiscal Year 2023/24 ATTACHMENT 9 INTRODUCTION Reason for Assessment Approval of the assessment covered by this Engineer’s Report will generate the revenue necessary to: Provide for the maintenance and servicing of the improvements described in this Engineer’s Report. Maintenance may include but is not limited to, all of the following: the upkeep, repair, removal or replacement of all or any part of any improvement or facility such as paseos, community trails, fencing and irrigation systems, and providing for the growth, vigor and care of the trees and landscape plant materials. Servicing means the furnishing of electricity, gas or other illuminating energy for the lighting of landscape or appurtenant facilities. This shall also include material, vehicle, equipment, capital improvements and administrative costs associated with the annual administration and operation of the District. Process for Annual Assessment The City cannot levy and collect annual assessments within the District without complying with the procedures specified in the 1972 Act. On an annual basis, an Engineer’s Report must be prepared which contains a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. The City Council must also adopt a resolution of intention which: •Declares the intention of the City Council to levy and collect assessments within the District for the fiscal year stated therein. •Generally describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements. •Refers to the District by its distinctive designation and indicate the general location of the District. •Refers to the Engineer’s Report, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. •Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment. •States whether the assessment is proposed to increase from the previous year. If the assessments are to be levied in the same or lesser amounts than the maximum assessment amount approved, the City Clerk shall give notice by causing the resolution of intention to be published. Any interested person may, prior to the conclusion of the public Page 441 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 10 – City of Rancho Cucamonga 4 Fiscal Year 2023/24 ATTACHMENT 9 hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. During the course or upon conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including the improvements, to the zones within the District, and the proposed diagram or the proposed assessment. The City Council, upon conclusion of the public hearing must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the assessment. If the assessment to be levied exceeds the maximum assessment amount previously approved, the City must comply with the procedures specified in Article XIII D and Proposition 218. The voters in the State of California in November 1996 added Article XIII D to the California Constitution imposing, among other requirements, the necessity for the City to conduct an assessment ballot procedure to enable the owners of each property on which assessments are proposed to be enacted or increased, the opportunity to express their support for, or opposition to, the proposed assessment or increase in such assessment. PLANS AND SPECIFICATIONS The District provides for the administration, maintenance, operations, and servicing of various improvements located within the public right-of-way and dedicated easements within the boundaries of the District. Description of the Boundaries of the District The District is located in the City of Rancho Cucamonga, State of California. The boundaries of the District are generally described as that area known as Rancho Etiwanda, which lies north of the 210 Freeway, east of Day Creek Channel, and west of Bluegrass Ave. Typically parcels have been annexed to the District as they have developed. Reference is also made to the Assessment Diagram included in this Report. Description of Improvements and Services The improvements maintained by the District include the paseos, community trails, trees, landscaped sites and appurtenant facilities that are throughout the District. These improvements are located within the street right-of-ways and dedicated public easements which are within the boundaries of the District. The landscaping maintenance includes, but is not limited to, the pruning, fertilizing, mowing, weeding, pest control, removal of trash/debris, and irrigation of the trees, shrubs, vines, ground cover, and turf. Maintenance of associated improvements and facilities, such as community trails, fencing and irrigation systems, includes but is not limited to, grading and replacement of trail surfacing, trail fence repair and replacement, steel fence painting, repair and replacement, and irrigation systems control, adjustment, trouble-shooting, Page 442 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 10 – City of Rancho Cucamonga 5 Fiscal Year 2023/24 ATTACHMENT 9 repair and replacement. Services include personnel, materials, contracting services, utilities, capital projects and all necessary costs associated with the maintenance, replacement and repair required to keep the improvements in a healthy, vigorous and satisfactory condition. In addition, it is the City's intention to continue to use cost effective materials, including the future ability to replace landscaping with drought resistant or low water use plants, in order to lower expenses of the District. The breakdown of maintained areas is as follows: Parks: Day Creek Park. Site #Descriptive Location 10-1 The west side of Day Creek Blvd from 790 feet north of Richfield Dr to Wilson Ave. The north side of Wilson Ave from Day Creek Blvd to 227 feet west of Day Creek Blvd. This site overlaps 10-2. Ground Cover area:16,941 square feet Hardscape area: 3,589 square feet 10-2 The north and south side of Wilson Ave from 497 feet west of Alvarado Pl to Day Creek Blvd. The south side of Wilson Ave from Day Creek Blvd to Bluegrass Ave. The Wilson Ave median from Day Creek Blvd to Bluegrass Ave. Ground Cover area:47,275 square feet Hardscape area: 6,444 square feet 10-3 The west side of Day Creek Blvd from Wilson Ave to 144 feet south of Clydesdale Dr. The Day Creek Blvd median from Wilson Ave to Banyan St. Ground Cover area:32,619 square feet Hardscape area:10,983 square feet 10-4 The east side of Day Creek Blvd from 648 feet south of Keenland Dr to Wilson Ave. Ground Cover area:15,952 square feet Hardscape area: 4,365 square feet 10-5 The west side of Bluegrass Ave from Wilson Ave to 705 feet south of Challendon Dr. Ground Cover area:26,882 square feet Hardscape area:12,220 square feet 10-6 The south side of Banyan St from Rochester Ave to Day Creek Blvd. The north side of Banyan St from 427 feet west of Rocking Horse Pl to Rocking Horse Pl. The west side of Day Creek Blvd from Banyan St to Vintage Dr. The north side of Vintage Dr from Day Creek Blvd to the paseo ending 153 feet west of Sandhill Pl. Ground Cover area:44,000 square feet Hardscape area:16,197 square feet Page 443 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 10 – City of Rancho Cucamonga 6 Fiscal Year 2023/24 ATTACHMENT 9 10-7 The north side of Vintage Dr from 180 feet east of Taylor Canon Pl to Day Creek Blvd. The east side of Day Creek Blvd from Vintage Dr to Banyan St. The south side of Banyan St from Day Creek Blvd to Bluegrass Ave. Ground Cover area:22,164 square feet Hardscape area:11,724 square feet 10-8 The landscape against the south side facing wall north of the 210 freeway from the top of the slope on the east side of Day Creek Blvd to 300 feet eastward. The Day Creek Blvd median from the 210 freeway to Vintage Dr. The east side of Day Creek Blvd from Caltrans ROW to Vintage Dr. The south side of Vintage Dr from Day Creek Blvd to 180 feet east of Taylor Canyon Pl. Ground Cover area:16,841 square feet Hardscape area: 7,025 square feet 10-9 The north side of Coyote Dr from Brookstone Pl to Day Creek Blvd. The east side of Day Creek Blvd from Coyote Dr to 358 feet north of Coyote Dr. The west side of Day Creek Blvd from 118 feet north of Coyote Dr to 380 feet north of Coyote Dr. Ground Cover area:9,403 square feet Hardscape area:6,052 square feet 10-10 The north side of Wilson Ave from 395 feet east of Day Creek Blvd to Day Creek Blvd. The east side of Day Creek Blvd from Wilson Ave to Blackstone Dr. The south side of Blackstone Dr from Day Creek Blvd to Stoneview Rd. The north side of Blackstone Dr from Day Creek Blvd to 165 feet west of Stoneview Rd. Ground Cover area:26,304 square feet Hardscape area:19,117 square feet 10-11 The west side of Day Creek Blvd from 340 feet north of Banyan St to Banyan St. The north side of Banyan St from Day Creek Blvd to Rocking Horse Pl. Ground Cover area:20,378 square feet Hardscape area:11,212 square feet 10-12 The paseo on the east side of Stoneview Rd across from Duncaster Pl. Ground Cover area:3,326 square feet Hardscape area:2,374 square feet 10-13 The west side of Day Creek Blvd from 340 feet south of Vintage Dr to 915 feet south of Vintage Dr. Ground Cover area:27,416 square feet Hardscape area:16,167 square feet Page 444 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 10 – City of Rancho Cucamonga 7 Fiscal Year 2023/24 ATTACHMENT 9 10-14 The south side of Vintage Dr from Saddle Tree Pl to Day Creek Blvd. The west side of Day Creek Blvd from Vintage Dr to 325 feet south of Vintage Dr. Ground Cover area: 7,777 square feet Hardscape area: 8,101 square feet *This sites irrigation pump and valves are powered from site 10-13 Ground cover, shrubs and turf areas that make up parkways, median islands and paseos are maintained under contract by a private landscape maintenance company. Parks are maintained by the City’s Park Maintenance Crews. Map of Improvements The following page shows the map of landscaping improvements, including irrigation sites and community trails, to be maintained using District funds. Page 445 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 10 – City of Rancho Cucamonga 8 Fiscal Year 2023/24 ATTACHMENT 9 Page 446 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 10 – City of Rancho Cucamonga 9 Fiscal Year 2023/24 ATTACHMENT 9 ESTIMATE OF COSTS The estimated costs of administration, maintenance, operations, and servicing the improvements as described in the Plans and Specifications are summarized below. Each year, as part of the District levy calculation process, the costs and expenses are reviewed and the annual costs are projected for the following fiscal year. District Budget Fis c al Year 2023/24 Budget Expe nditure s Pe rsonne l Se rv ice s: Regular Salaries 164,680$ Overtime Salaries 1,050 Part-time Salaries 36,110 Fringe Benefits 93,110 Subtotal - Pe rsonne l 294,950 Ope rations and Mainte nance : Operations and Maintenance: O & M/General 18,270 O & M/Facilities 26,650 Em ergency Equipment and Vehicle Rental 3,600 Equip Operations & Maint 1,000 Subtotal - Operations and Maintenanc e 49,520 Contract Servic es: Contrac t Servic es /General 194,520 Contrac t Serv/Facilities 4,160 Tree Maintenanc e 21,090 Subtotal - Contrac t Services 219,770 Utilities: W ater Utilities 142,380 Elec tric Utilities 18,100 Subtotal - Utilities 160,480 As s es s m ent Adm inis tration 2,820 Admin./General Overhead 95,440 Misc Contributions to City 650 Subtotal - Ope rations and M ainte nance 528,680 Capital Expe nditure s: Captial Outlay - Equipment 6,400 Captial Projec t 384,000 Subtotal - Capital Expe nditure s 390,400 T otal Expe nditure s Budge t 1,214,030$ Page 447 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 10 – City of Rancho Cucamonga 10 Fiscal Year 2023/24 ATTACHMENT 9 Fis c al Year 2023/24 Budget Re v e nue s T axe s: Estimated Asses s m ents , Net of Es tim ated Delinquencies 664,310$ Antic ipated Prior Year Delinquenc ies Collec tion 5,550 Subtotal - T axe s 669,860 Othe r Re v e nue s: Interes t Earnings 21,540 Other Rental/Leas e Inc om e 27,220 Park Maintenance Fees 180 Sports Field Us er Group Rentals 40 Sports Lighting Fees 3,970 Other Revenue 100 Subtotal - Othe r Re v e nue s:53,050 T otal Re v e nue s Budge t 722,910 Contribution to/(Use of) Fund Balance (491,120)$ Total Gros s Es tim ated As s essments 664,303.62$ Total Dis tric t EBU Count 786.00 Ac tual Ass es sm ent per EBU - Fis c al Year 2023/24 845.17$ Maximum Allowable As s essm ent per EBU - Fis c al Year 2023/24 1,068.49$ Each year, prior to the assessments being placed on the tax roll, the City will review the budget and determine the amount needed to maintain the improvements for the upcoming fiscal year. The actual assessment per Equivalent Benefit Unit (EBU) will be based on the estimated costs of maintenance, available fund balance and maximum allowable assessment with the goal of maintaining the improvements in a satisfactory and healthy condition. The actual assessment amount may be lower than the maximum allowable assessment; however, it may not exceed the maximum unless the increase is approved by the property owners in accordance with Proposition 218. It is the intent of the City to maintain an Operating Reserve which shall not exceed the estimated costs of maintenance and servicing of the improvements prior to December 10 of the fiscal year, or when the City expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. The reserve balance information for the District is as follows: Operating Res erve Estimated Res erve Fund Balance, June 30, 2023 1,323,245$ Contribution to/(Use of) Res erve - Fis c al Year 2023/24 (491,120) Estimated Res erve Fund Balance, June 30, 2024 832,125$ Page 448 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 10 – City of Rancho Cucamonga 11 Fiscal Year 2023/24 ATTACHMENT 9 Definitions of Budget Items The following definitions describe the costs and expenses included in the District Budget: Personnel Services: This item includes the costs attributed to the salaries of all full-time and part-time employees dedicated to maintenance of the District improvements. Additionally, this includes benefits available to City employees. Operations and Maintenance: This item includes the costs of City staff to perform maintenance duties within the boundaries of the District. Contract Services: This item includes the contract costs of a landscape maintenance company responsible for the ongoing maintenance of the District improvements. Utilities: This item includes the costs to furnish electricity, water, and telephone services, as required, for the operation and maintenance of the sprinklers and irrigation controllers in the District. Assessment Administration: This item includes the cost of all particular departments and staff of the City, as well as consultants, for providing the administration, coordination and management of District services, operations, and incidental expenses related to the District. This item also includes creation of an annual Engineer's Report, resolutions and placing the assessment amounts onto the County tax roll each year, along with responding to any public inquiries and future Proposition 218 balloting proceedings. General Overhead: This item includes the costs of all central services departments of the City for providing the coordination of District services, inspections, annual bid management, responding to public concerns, public education, accounting, auditing and procedural matters associated with the District. This item also includes an allocation for general City staff time for administrative functions and systems that provide for a functional and operational District within the City's administrative structure. Capital Outlay: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include new monuments, irrigation systems, and other large improvements. Other Revenues: This includes other revenues that are not levied through the annual assessments that support the District operations. These other revenues may include: interest earnings, other rental/lease income (cell site tower leases), Park Maintenance Fees, Sports Field User Group Rentals, and parking permits (Metrolink Station paid parking). Page 449 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 10 – City of Rancho Cucamonga 12 Fiscal Year 2023/24 ATTACHMENT 9 METHOD OF ASSESSMENT Overview Pursuant to the 1972 Act and Article XIII D. all parcels that have a special benefit conferred upon them as a result of the maintenance and operation of improvements and services shall be identified, and the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entire costs of the maintenance and operation of improvements. The 1972 Act, permits the establishment of assessment districts for the purpose of providing certain public improvements which include the operation, maintenance and servicing of landscaping improvements. Section 22573 of the 1972 Act requires that maintenance assessments must be levied according to benefit rather than according to assessed value. This Section states: The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefit to be received by each such lot or parcel from the improvements. The determination of whether or not a lot or parcel will benefit from the improvements shall be made pursuant to the Improvement Act of 1911 (Division 7 commencing with Section 5000) [of the Streets and Highways Code, State of California]. Section 22547 of the 1972 Act also permits the designation of zones of benefit within any individual assessment district if "by reasons or variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvement". Article XIII D, Section 4(a) of the California Constitution limits the amount of any assessment to the proportional special benefit conferred on the property. Article XIII D also provides that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment. Exempted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements and rights-of-ways, public greenbelts and public parkways. The net amount to be assessed may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels. Proposition 218, approved by the voters in November 1996, requires the City to separate general benefit from special benefit, where only special benefit is assessed. Page 450 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 10 – City of Rancho Cucamonga 13 Fiscal Year 2023/24 ATTACHMENT 9 General Benefit Section 4 of Article XIII D of the California Constitution provides that once a local agency which proposes to impose assessments on property has identified those parcels that will have special benefits conferred upon them and upon which an assessment will be imposed, the local agency must next "separate the general benefits from the special benefits conferred," and only the special benefits can be included in the amount of the assessments imposed. In this District, the improvements being financed consists of the maintenance of local improvements located within the boundaries of the District and include paseos, street trees, landscaped areas and appurtenant facilities that are located throughout the District and were installed to create a common landscape theme and neighborhood identity for parcels within the District. The improvements are situated within the public rights-of-way of the internal local street network within the District which provides ingress and egress for parcels within the District to access the City’s system of arterial streets. City residents and traffic from parcels not within the District do not use the internal local street network or paseos except for the express purpose of accessing properties located within the District, and therefore do not benefit from the improvements. Only parcels which are within the District and proximate to the improvements and within the District are being assessed. Accordingly, there is a direct physical and visual nexus between each parcel being assessed and the improvements to be funded by the assessment that does not exist for parcels outside of the District boundary and that is particular and distinct from that shared by the public at large. Under these circumstances, all of the benefits conferred are direct and local in nature, and provide a benefit to only those parcels located within the boundaries of the District. Based upon this, it has been determined that there is no quantifiable general benefit to the surrounding community and the public in general from the maintenance of the improvements within the boundaries of the District, and therefore no portion of the project costs should be attributed to general benefit. Special Benefit The maintenance and servicing of the improvements within the District (which are described in the Description of Improvements and Services Section of this report) are for the benefit of the properties within the District and, as such, confer a special and direct benefit to parcels within the District by: •improving the livability, appearance, and desirability for properties within the boundaries of the District, and •ensuring that improvements do not reach a state of deterioration or disrepair so as to be materially detrimental to properties within the District, and •providing beautification, shade and overall enhancement to properties within the District. Page 451 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 10 – City of Rancho Cucamonga 14 Fiscal Year 2023/24 ATTACHMENT 9 The above mentioned items affect the assessed property in a way that is particular and distinct from their effect on other parcels and that real property in general and the public at large do not share. They contribute to a specific enhancement of the properties within the District. Since these improvements, including the community trails, were installed and are maintained specifically for the properties within the District, only properties within the District receive a special benefit and are assessed for said maintenance. Method of Assessment Spread Each of the parcels within the District is deemed to receive special benefit from the improvements. Each parcel that has a special benefit conferred upon it as a result of the maintenance and operation of improvements is identified and the proportionate special benefit derived by each identified parcel is determined in relationship to the entire costs of the maintenance and operation of the improvements. To assess special benefit appropriately, it is necessary to relate the different type of parcel improvements to each other. The EBU method of apportionment uses the single-family home as the basic unit of assessment. A single-family home equals one EBU. The following table provides the weighting factors applied to determine each parcel's EBU assignment. Land-Use Equivalent Dwelling Units Prope rty T ype (County Use Code )EBU Value M ultiplie r Single Fam ily Res idential 1.00 Parcel The use of the latest County Assessor's Secured Roll shall be the basis for the Property Type determination and units/acreage assignments, unless better data is available to the City. In addition, if any parcel within the District is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, the Property Type and EBU assignment shall be based on the correct parcel number and/or new parcel number(s) County use code and subsequent property information. If a single parcel has changed to multiple parcels, the EBU assignment and assessment amount applied to each of the new parcels will be recalculated rather than spread the proportionate share of the original assessment. The following summarizes the Fiscal Year 2023/24 maximum allowable assessment rates for the District: Prope rty T ype (County Use Code) Maximum Allowable Assessme nt Rate pe r EBU Actual Asessme nt Rate per EBU T otal Units/Acres T otal EBUs Single Fam ily Residential $1,068.49 $845.17 786.00 786.00 Page 452 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 10 – City of Rancho Cucamonga 15 Fiscal Year 2023/24 ATTACHMENT 9 The total amount of maintenance and incidental costs for maintaining the landscaping and community trail improvements is assessed to the individual parcels of real property within the District in proportion to the special benefit received by such parcels of real property. The proposed individual assessments are shown on the assessment roll in this report. Cost of Living Inflator Each fiscal year beginning with Fiscal Year 2002/03, the maximum allowable assessment may increase each year, based upon the Consumer Price Index ("CPI"), All Urban Consumers (CPI- U), for the Riverside – San Bernardino – Ontario Consumer Price Index area, as determined by the United States Department of Labor, Bureau of Labor Statistics, or its successor. The Engineer shall compute the percentage difference between the CPI for March of each year and the CPI for the previous March, and shall then adjust the existing assessment by an amount not to exceed such percentage for the following fiscal year. Should the Bureau of Labor Statistics revise such index or discontinue the preparation of such index, the Engineer shall use the revised index or a comparable system as approved by the City Council for determining fluctuations in the cost of living. If for any reason the percentage change is negative the maximum allowable assessment would not be decreased by reason of such negative percentage change and would remain at the amount as computed on the previous fiscal year regardless of any CPI adjustment. The annual assessment cannot exceed the actual costs to operate the District in any given year. If operating costs are such that the maximum assessment amount is not needed, the City would levy only what is needed for that year. The actual assessment rate for Fiscal Year 2023/24 will increase from $804.92 to $845.17 per single-family residence, a CPI increase of 5.0% as compared to Fiscal Year 2022/23. ASSESSMENT DIAGRAM An Assessment Diagram for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the San Bernardino County Assessor Office, at the time this report was prepared, and are incorporated by reference herein and made part of this Engineer's Report. Page 453 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 10 – City of Rancho Cucamonga 16 Fiscal Year 2023/24 ATTACHMENT 9 Page 454 of 715 ____________________________________________________________________________ Landscape Maintenance District No. 10 – City of Rancho Cucamonga 17 Fiscal Year 2023/24 ATTACHMENT 9 ASSESSMENT ROLL and ANNEXATIONS Assessment Roll The assessment roll is a listing of the assessment for Fiscal Year 2023/24 apportioned to each lot or parcel, as shown on the last equalized roll of the Assessor of the County of San Bernardino. The following tables summarize the Fiscal Year 2023/24 actual assessment for the District: Property T ype (County Use Code ) Actual Asse ssment Rate pe r EBU T otal Units/Acre s T otal EBUs T otal Asse ssme nt Single Family Residential $845.17 786.00 786.00 $664,303.62 T otals 786.00 786.00 $664,303.62 A copy of the full assessment roll is available for review in the City Clerk's office. Annexations There are no effective annexations for Fiscal Year 2023/24. Page 455 of 715 ATTACHMENT 10 Annual Engineer’s Report Fiscal Year 2023/24 City of Rancho Cucamonga Street Lighting Maintenance District No. 1 (Arterials) Page 456 of 715 CITY OF RANCHO CUCAMONGA STREET LIGHTING MAINTENANCE DISTRICT NO. 1 (ARTERIALS) 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909.477.2700 Fax: 909.477.2845 CITY COUNCIL L. Dennis Michael, Mayor Lynne B. Kennedy, Mayor Pro Tem Ryan A. Hutchison, Council Member Kristine D. Scott, Council Member Ashley N. Stickler, Council Member CITY STAFF John R. Gillison, City Manager Elisa Cox, Assistant City Manager Jason C. Welday, Director of Engineering Services/City Engineer William Wittkopf, Public Works Director Noah Daniels, Finance Director Page 457 of 715 TABLE OF CONTENTS ENGINEER’S LETTER 1 INTRODUCTION 3 Reason for Assessment 3 Process for Annual Assessment 3 PLANS AND SPECIFICATIONS 4 Description of the Boundaries of the District 4 Description of Improvements and Services 4 Map of Improvements 5 ESTIMATE OF COSTS 7 District Budget 7 Definitions of Budget Items 9 METHOD OF ASSESSMENT 10 Overview 10 Special Benefit 11 General Benefit 11 Method of Assessment Spread 11 ASSESSMENT ROLL AND ANNEXATIONS 15 Assessment Roll 15 Annexations 15 Page 458 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 1 – City of Rancho Cucamonga 1 Fiscal Year 2023/24 ATTACHMENT 10 ENGINEER’S LETTER WHEREAS, on June 7, 2023, the City Council of Rancho Cucamonga (the “City”), under the Landscaping and Lighting Act of 1972 (the “1972 Act”) adopted its Resolution No. 2023-058, a Resolution Initiating Proceedings for the Levy of Annual Assessments for Street Lighting Maintenance District No. 1 (Arterial) (the “District”); and WHEREAS, the Resolution Initiating Proceedings directed the City Engineer to prepare and file an Annual Engineer’s Report for Fiscal Year 2023/24 pursuant to the requirements of the 1972 Act. The Annual Engineer’s Report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the maintenance, operations and servicing of the improvements for the District for the referenced fiscal year, a diagram for the District, showing the area and properties proposed to be assessed, and an assessment of the estimated costs of the maintenance, operations and servicing of the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received; and NOW THEREFORE, the following assessment is proposed to be authorized in order to pay for the acquisition of street lights, the installation of Light Emitting Diode (LED) street lighting, and estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the boundaries of the District in proportion to the special benefit received. The following table summarizes the proposed assessment. Fisc al Year 2023/24 Budget Expe nditure s Pers onnel Services 40,980$ O perations and Maintenanc e 869,470 Trans fer Out 111,640 T otal Expe nditure s Budge t 1,022,090 Re v e nue s Taxes : Es timated As s es s m ents , Net of Es tim ated Delinquencies 836,100 Antic ipated Prior Year Delinquenc ies Collection 6,890 Subtotal - Taxes 842,990 O ther Revenues 10,700 Trans fer In - CFD Em pire Lakes 16,830 Trans fer In - CFD Street Lighting Servic es 5,920 T otal Re v e nue s Budge t 876,440 Contribution to/(Use of) Fund Balance (145,650)$ Total Dis trict EBU Count 47,051.14 Ac tual Ass ess m ent per EBU 17.77$ Maxim um Allowable As ses sment per EBU 17.77$ Page 459 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 1 – City of Rancho Cucamonga 2 Fiscal Year 2023/24 ATTACHMENT 10 In making the assessments contained herein pursuant to the 1972 Act: 1. I have identified all parcels which will have a special benefit conferred upon them from the improvement described in the Special Benefit Section of this Annual Engineer’s Report (the “Specially Benefited Parcels”). For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is included in this Annual Engineer’s Report. 2. I have evaluated the costs and expenses of the improvements upon the Specially Benefited Parcels. In making such evaluation: a. The proportionate special benefit derived by each Specially Benefited Parcel from the improvements was determined in relationship to the entirely of the maintenance costs of the improvements; b. No assessment has been imposed on any Specially Benefited Parcel which exceeds the reasonable cost of the proportional special benefit conferred on such parcel from the improvements; and c. Any general benefits from the improvements have been separated from the special benefits and only special benefits have been assessed. I, the undersigned, respectfully submit the enclosed Annual Engineer’s Report and, to the best of my knowledge, information and belief, I certify that the Annual Engineer’s Report and Assessment Diagram included herein have been prepared and computed in accordance with the order of the City Council of the City of Rancho Cucamonga and the Assessment Law. Jason C. Welday Director of Engineering Services/City Engineer Page 460 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 1 – City of Rancho Cucamonga 3 Fiscal Year 2023/24 ATTACHMENT 10 INTRODUCTION Reason for Assessment Approval of the assessment covered by this Engineer’s Report will generate the revenue necessary to: Provide for the maintenance and servicing of the improvements described in this Engineer’s Report. Maintenance may include but is not limited to, all of the following: the upkeep, repair, removal or replacement of all or any part of any improvement. Servicing means the furnishing of electricity, gas or other illuminating energy for the lighting or appurtenant facilities. This shall also include material, vehicle, equipment, capital improvements, the installation of LED street lighting, and administrative costs associated with the annual administration and operation of the District. Process for Annual Assessment The City cannot levy and collect annual assessments within the District without complying with the procedures specified in the 1972 Act. On an annual basis, an Engineer’s Report must be prepared which contains a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. The City Council must also adopt a resolution of intention which: •Declares the intention of the City Council to levy and collect assessments within the District for the fiscal year stated therein. •Generally describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements. •Refers to the District by its distinctive designation and indicate the general location of the District. •Refers to the Engineer’s Report, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. •Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment. •States whether the assessment is proposed to increase from the previous year. If the assessments are to be levied in the same or lesser amounts than the maximum assessment amount approved, the City Clerk shall give notice by causing the resolution of intention to be published. Any interested person may, prior to the conclusion of the public hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. Page 461 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 1 – City of Rancho Cucamonga 4 Fiscal Year 2023/24 ATTACHMENT 10 During the course or upon conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including the improvements, to the zones within the District, and the proposed diagram or the proposed assessment. The City Council, upon conclusion of the public hearing, must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the assessment. If the assessment to be levied exceeds the maximum assessment amount previously approved, the City must comply with the procedures specified in Article XIII D and Proposition 218. The voters in the State of California in November 1996 added Article XIII D to the California Constitution imposing, among other requirements, the necessity for the City to conduct an assessment ballot procedure to enable the owners of each property on which assessments are proposed to be enacted or increased, the opportunity to express their support for, or opposition to, the proposed assessment or increase in such assessment. PLANS AND SPECIFICATIONS The District provides for the administration, maintenance, operations, and servicing of various improvements located within the public right-of-way and dedicated easements within the boundaries of the District. Description of the Boundaries of the District The District is located in the City of Rancho Cucamonga, State of California. The boundaries of the District are generally described as the entire City of Rancho Cucamonga. Reference is also made to the Assessment Diagram included in this Report. Description of Improvements and Services The improvements are the maintenance and servicing of street lights, traffic signals and appurtenant facilities throughout the District. The maintenance and servicing includes, but is not limited to, furnishing electric current for public lighting facilities including street lights and traffic signals, and associated appurtenant facilities. Services include personnel, materials, contracting services, utilities, and all necessary costs associated with the maintenance, replacement and repair required to keep the improvements in operational and satisfactory condition. In addition, it is the City's intention to continue to use cost effective materials, in order to lower expenses of the District. In Fiscal Year 2017/18, the acquisition by the City of the street lights and installation of LED street lighting specially benefiting the properties within the District has been added to the improvements. Page 462 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 1 – City of Rancho Cucamonga 5 Fiscal Year 2023/24 ATTACHMENT 10 Map of Improvements The following page shows the map of street light and traffic signal improvements to be maintained using District funds. Page 463 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 1 – City of Rancho Cucamonga 6 Fiscal Year 2023/24 ATTACHMENT 10 Page 464 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 1 – City of Rancho Cucamonga 7 Fiscal Year 2023/24 ATTACHMENT 10 ESTIMATE OF COSTS The estimated costs of administration, maintenance, operations, and servicing the improvements as described in the Plans and Specifications are summarized below. Each year, as part of the District levy calculation process, the costs and expenses are reviewed and the annual costs are projected for the following fiscal year. District Budget Fis c al Year 2023/24 Budget Expe nditure s Pe rsonne l Se rv ice s: Regular Salaries 27,320$ Fringe Benefits 13,660 Subtotal - Pe rsonne l 40,980 Ope rations and M ainte nance : Training 220 Membership Dues 80 O & M/General 48,140 Cellular Tec hnology 2,000 Equipment Operations and Maintenance 500 Subtotal - Operations and Maintenanc e 50,940 Contrac t Servic es: Contrac t Servic es 47,750 Contrac t Equipment Maintenanc e/Repair 4,280 Subtotal - Contrac t Servic es 52,030 Utilities : Telephone Utilities 1,500 Electric Utilities 587,960 Subtotal - Utilities 589,460 As s ess ment Adm inis tration 106,710 Admin./General Overhead 70,330 Subtotal - Ope rations and Mainte nance 869,470 T ransfe r Out - Ge ne ral City Stre e t Lights Fund 111,640 T otal Expe nditure s Budge t 1,022,090$ Page 465 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 1 – City of Rancho Cucamonga 8 Fiscal Year 2023/24 ATTACHMENT 10 Fis cal Year 2023/24 Budget Re v e nue s T axe s: Estim ated As sess m ents, Net of Estimated Delinquenc ies 836,100$ Antic ipated Prior Year Delinquenc ies Collection 6,890 Subtotal - T axe s 842,990 Othe r Re v e nues: Interes t Earnings 7,530 Other Revenue - Day Creek Traffic Signal 3,170 Subtotal - Othe r Re v e nue s:10,700 T ransfe r In Trans fer In - CFD Empire Lakes 16,830 Trans fer In - CFD Street Lighting Servic es 5,920 Subtotal - T ransfer In:22,750 T otal Re v e nue s Budge t 876,440 Contribution to/(Use of) Fund Balance (145,650)$ Total Gross Es timated Asses sments 836,098.74$ Total Dis trict EBU Count 47,051.14 Ac tual As sess m ent per EBU - Fisc al Year 2023/24 17.77$ Maximum Allowable As sess m ent per EBU - Fisc al Year 2023/24 17.77$ The maximum allowable assessment per Equivalent Benefit Unit (EBU) listed in the District budget above, is the amount which was approved in Fiscal Year 1996/97 and subsequent District annexations. Each year, prior to the assessments being placed on the tax roll, the City will review the budget and determine the amount needed to maintain the improvements for the upcoming fiscal year. The actual assessment per EBU will be based on the total amount of funds needed to maintain the improvements in a satisfactory and healthy condition. The actual assessment amount may be lower than the maximum allowable assessment; however, it may not exceed the maximum unless the increase is approved by the property owners in accordance with Proposition 218. It is the intent of the City to maintain an Operating Reserve which shall not exceed the estimated costs of maintenance and servicing of the improvements prior to December 10 of the fiscal year, or when the City expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. The reserve balance information for the District is as follows: Operating Reserve Estim ated Res erve Fund Balanc e, June 30, 2023 450,416$ Contribution to/(Us e of) Res erve - Fisc al Year 2023/24 (145,650) Estim ated Res erve Fund Balanc e, June 30, 2024 304,766$ Page 466 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 1 – City of Rancho Cucamonga 9 Fiscal Year 2023/24 ATTACHMENT 10 Definitions of Budget Items The following definitions describe the costs and expenses included in the District Budget: Personnel Services: This item includes the costs attributed to the salaries of all full-time and part-time employees dedicated to maintenance of the District improvements. Additionally, this includes benefits available to City employees. Operations and Maintenance: This item includes the costs of City staff to perform maintenance duties within the boundaries of the District. Utilities: This item includes the costs to furnish electricity and telephone services, as required, for the operation and maintenance of the street lights, traffic signals, and appurtenant facilities throughout the District. Assessment Administration: This item includes the cost to all particular departments and staff of the City, and consultants for providing the administration, coordination and management of District services, operations, and incidental expenses related to the District. This item also includes creation of an annual Engineer's Report, resolutions and placing the assessment amounts onto the County tax roll each year, along with responding to any public inquiries and future Proposition 218 balloting proceedings. General Overhead: This item includes the costs of all central services departments of the City for providing the coordination of District services, inspections, annual bid management, responding to public concerns, public education, accounting, auditing and procedural matters associated with the District. This item also includes an allocation for general City staff time for administrative functions and systems that provide for a functional and operational District within the City's administrative structure. Capital Outlay: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include installation of safety lights and other large improvements. Debt Service: This item includes the repayment of interest and principal to the City Capital Reserve Fund for the acquisition of street lights and installation of LED street lighting within the District. In Fiscal Year 2023/24, the debt service has been suspended due to the structural operating deficit and will be routinely monitored. Transfer Out - General City Street Lights Fund: This item includes the cost for the replacement and installation of District owned street lights. These costs are incurred in the General City Street Lights Fund and reimbursed by the District. Page 467 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 1 – City of Rancho Cucamonga 10 Fiscal Year 2023/24 ATTACHMENT 10 Other Revenues: This includes other revenues that are not levied through the annual assessments that support the District operations. These other revenues may include: interest earnings and Developer Energizing Fees. METHOD OF ASSESSMENT Overview Pursuant to the 1972 Act and Article XIII D, all parcels that have a special benefit conferred upon them as a result of the maintenance and operation of improvements and services shall be identified, and the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entire costs of the maintenance and operation of improvements. The 1972 Act, permits the establishment of assessment districts for the purpose of providing certain public improvements which include the public lighting facilities, including traffic signals. Section 22573 of the 1972 Act requires that maintenance assessments must be levied according to benefit rather than according to assessed value. This Section states: The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefit to be received by each such lot or parcel from the improvements. The determination of whether or not a lot or parcel will benefit from the improvements shall be made pursuant to the Improvement Act of 1911 (Division 7 commencing with Section 5000) [of the Streets and Highways Code, State of California]. Section 22547 of the 1972 Act also permits the designation of zones of benefit within any individual assessment district if "by reasons or variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvement". Article XIII D, Section 4(a) of the California Constitution limits the amount of any assessment to the proportional special benefit conferred on the property. Article XIII D also provides that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment. Exempted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements and rights-of-ways, public greenbelts and public parkways. The net amount to be assessed may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels. Proposition 218, approved by Page 468 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 1 – City of Rancho Cucamonga 11 Fiscal Year 2023/24 ATTACHMENT 10 the voters in November 1996, requires the City to separate general benefit from special benefit, where only special benefit is assessed. Special Benefit The maintenance and servicing of the improvements within the District (which are described in the Description of Improvements and Services Section of this report) are for the benefit of the properties within the District, and as such confer a special and direct benefit to parcels within the District by: •improving the livability, safety, appearance, and desirability for properties within the boundaries of the District, and •ensuring that improvements do not reach a state of deterioration or disrepair so as to be materially detrimental to properties within the District, and •providing for safe vehicular and pedestrian access for properties within the District, and •providing beautification and overall enhancement to properties within the District. The above mentioned items affect the assessed property in a way that is particular and distinct from their effect on other parcels and that real property in general and the public at large do not share. They contribute to a specific enhancement of the properties within the District. Since these improvements were installed and are maintained specifically for the properties within the District; only properties within the District receive a special benefit and are assessed for said maintenance. General Benefit In addition to the special benefits received by parcels within the District, there are derivative general benefits that are conferred on parcels outside the boundaries of the District which include: •the safety and visual enhancement of the area to persons or vehicles that may travel through the District However, it has been determined that these benefits are derivative and do not provide a direct benefit to parcels outside of the district that are not being assessed. Method of Assessment Spread Each of the parcels within the District is deemed to receive special benefit from the improvements. Each parcel that has a special benefit conferred upon it as a result of the maintenance and operation of improvements are identified and the proportionate special benefit derived by each identified parcel is determined in relationship to the entire costs of the maintenance and operation of the improvements. Page 469 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 1 – City of Rancho Cucamonga 12 Fiscal Year 2023/24 ATTACHMENT 10 When the District was formed, Article XIII D and Proposition 218 had not yet been passed. Upon the passage of Article XIII D and the subsequent passage of the Proposition Omnibus Implementation Act, new rules were put into place. Due to the changes in legal requirements, as property annexed to the District after the passage of the Assessment Law, the description of the method of assessment became more refined; however, the assessment per parcel has remained the same since Fiscal Year 1996/97. Further, no parcel included in the District formation or annexations prior to when the language was refined, are now being levied differently than they were at the time the District was formed or the parcels were annexed. To assess special benefit appropriately, it is necessary to relate the different type of parcel improvements to each other. The Equivalent Benefit Unit ("EBU") method of apportionment uses the single-family home as the basic unit of assessment. A single-family home equals one Equivalent Benefit Unit (EBU). Every other land-use is converted to EBUs based on an assessment formula that equates to the property's specific development status, type of development (land-use), and size of the property, as compared to a single-family home. The following table provides the weighting factors applied to various land- use types, as assigned by County use code, to determine each parcel's EBU assignment. Land-Use Equivalent Benefit Units Prope rty T ype (County Use Code )EBU Value M ultiplie r Single Fam ily Residential 1.00 Parc el Multi-Family Res idential 1.00 Unit Non-Res idential 2.00 Ac re The use of the latest County Assessor's Secured Roll shall be the basis for the Property Type determination and units/acreage assignments, unless better data is available to the City. In addition, if any parcel within the District is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, the Property Type and EBU assignment shall be based on the correct parcel number and/or new parcel number(s) County use code and subsequent property information. If a single parcel has changed to multiple parcels, the EBU assignment and assessment amount applied to each of the new parcels will be recalculated rather than spread the proportionate share of the original assessment. The following table summarizes the Fiscal Year 2023/24 maximum allowable assessment rates for the District: Page 470 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 1 – City of Rancho Cucamonga 13 Fiscal Year 2023/24 ATTACHMENT 10 Prope rty T ype (County Use Code) M aximum Allowable Asse ssme nt Rate pe r EBU Actual Ase ssme nt Rate pe r EBU T otal Units/Acres T otal EBUs Single Fam ily Residential $17.77 $17.77 28,395.00 28,395.00 Multi-Family Res idential 17.77 17.77 12,373.00 12,373.00 Non-Residential 17.77 17.77 3,141.57 6,283.14 The total amount of maintenance and incidental costs for maintaining the street lights and traffic signals is assessed to the individual parcels of real property within the District in proportion to the special benefit received by such parcels of real property. The proposed individual assessments are shown on the assessment roll in this report. ASSESSMENT DIAGRAM An Assessment Diagram for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the County Assessor of the County San Bernardino, at the time this report was prepared, and are incorporated by reference herein and made part of this Engineer's Report. Page 471 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 1 – City of Rancho Cucamonga 14 Fiscal Year 2023/24 ATTACHMENT 10 Page 472 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 1 – City of Rancho Cucamonga 15 Fiscal Year 2023/24 ATTACHMENT 10 ASSESSMENT ROLL AND ANNEXATIONS Assessment Roll The assessment roll is a listing of the assessment for Fiscal Year 2023/24 apportioned to each lot or parcel, as shown on the last equalized roll of the Assessor of the County of San Bernardino. The following table summarize the Fiscal Year 2023/24 actual assessments for the District: Property T ype (County Use Code ) Actual Asse ssment Rate pe r EBU T otal Units/Acre s T otal EBUs T otal Asse ssme nt Single Family Residential $17.77 28,395.00 28,395.00 $504,579.15 Multi-Family Res idential 17.77 12,373.00 12,373.00 219,868.21 Non-Res idential 17.77 3,141.57 6,283.14 111,651.38 T otals 43,909.57 47,051.14 $836,098.74 A copy of the full assessment roll is available for review in the City Clerk's office. Annexations The following annexations are effective for Fiscal Year 2023/24: Apn Anne xation Date Project Name T otal Units/ Acres T otal EBUs Prope rty T ype 1100-201-08 01/19/22 DRC2014-01130 193.00 193.00 Multi-Family Res 1090-251-29 02/22/22 PMT2021-03992 1.00 1.00 Single-Family Res 1100-191-04 02/02/22 SUBTT20148 131.00 131.00 Multi-Family Res 0209-032-35 05/04/22 SUBTPM20164 2.32 2.32 Commercial/Industrial 0225-191-09 and -17 06/01/22 SUBTT20344 17.00 17.00 Single-Family Res 0209-361-09 08/03/22 PMT2021-05731 1.00 1.00 Single-Family Res 0202-061-32 11/02/22 SUBTT20353 6.00 6.00 Single-Family Res 0202-981-19 11/16/22 DRC2020-00157 1.00 1.00 Single-Family Res 0229-171-28 11/16/22 DRC2018-00946 1.55 1.55 Commercial/Industrial 0229-032-57 12/07/22 DRC2018-00594 0.79 0.79 Commercial/Industrial 0229-171-02 12/07/22 DRC2019-05590 4.76 4.76 Commercial/Industrial Page 473 of 715 ATTACHMENT 11 Annual Engineer’s Report Fiscal Year 2023/24 City of Rancho Cucamonga Street Lighting Maintenance District No. 2 (Local Streets) Page 474 of 715 CITY OF RANCHO CUCAMONGA STREET LIGHTING MAINTENANCE DISTRICT NO. 2 (LOCAL STREETS) 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909.477.2700 Fax: 909.477.2845 CITY COUNCIL L. Dennis Michael, Mayor Lynne B. Kennedy, Mayor Pro Tem Ryan A. Hutchison, Council Member Kristine D. Scott, Council Member Ashley N. Stickler, Council Member CITY STAFF John R. Gillison, City Manager Elisa Cox, Assistant City Manager Jason C. Welday, Director of Engineering Services/City Engineer William Wittkopf, Public Works Director Noah Daniels, Finance Director Page 475 of 715 TABLE OF CONTENTS ENGINEER’S LETTER 1 INTRODUCTION 3 Reason for Assessment 3 Process for Annual Assessment 3 PLANS AND SPECIFICATIONS 4 Description of the Boundaries of the District 4 Description of Improvements and Services 4 Map of Improvements 5 ESTIMATE OF COSTS 7 District Budget 7 Definitions of Budget Items 9 METHOD OF ASSESSMENT 10 Overview 10 Special Benefit 11 General Benefit 11 Method of Assessment Spread 11 ASSESSMENT DIAGRAM 13 ASSESSMENT ROLL AND ANNEXATIONS 15 Assessment Roll 15 Annexations 15 Page 476 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 2 – City of Rancho Cucamonga 1 Fiscal Year 2023/24 ATTACHMENT 11 ENGINEER’S LETTER WHEREAS, on June 7, 2023, the City Council of Rancho Cucamonga (the “City”), under the Landscaping and Lighting Act of 1972 (the “1972 Act”) adopted its Resolution No. 2023-058, a Resolution Initiating Proceedings for the Levy of Annual Assessments for Street Light Maintenance District No. 2 (Local Streets) (the “District”); and WHEREAS, the Resolution Initiating Proceedings directed the City Engineer to prepare and file an Annual Engineer’s Report for Fiscal Year 2023/24 pursuant to the requirements of the 1972 Act. The Annual Engineer’s Report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the maintenance, operations and servicing of the improvements for the District for the referenced fiscal year, a diagram for the District, showing the area and properties proposed to be assessed, and an assessment of the estimated costs of the maintenance, operations and servicing of the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received; and NOW THEREFORE, the following assessment is proposed to be authorized in order to pay for the acquisition of street lights, the installation of Light Emitting Diode (LED) street lighting, and estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the boundaries of the District in proportion to the special benefit received. The following table summarizes the proposed assessment. Fisc al Year 2023/24 Budget Expe nditure s Operations and Maintenanc e 417,850$ Trans fer Out 109,330 T otal Expe nditure s Budge t 527,180 Re v e nue s Taxes: Es timated Ass es sm ents , Net of Es tim ated Delinquenc ies 381,890 Anticipated Prior Year Delinquencies Collection 4,000 Subtotal - Taxes 385,890 Trans fer In -General Fund 96,900 Trans fer In - CFD Empire Lakes 44,240 Trans fer In - CFD Street Lighting Servic es 150 T otal Re v e nue s Budge t 527,180 Contribution to/(Use of) Fund Balance -$ Total Dis tric t EBU Count 9,554.32 Ac tual As s es s ment per EBU 39.97$ Maximum Allowable Ass ement per EBU 39.97$ Page 477 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 2 – City of Rancho Cucamonga 2 Fiscal Year 2023/24 ATTACHMENT 11 In making the assessments contained herein pursuant to the 1972 Act: 1. I have identified all parcels which will have a special benefit conferred upon them from the improvement described in the Special Benefit Section of this Annual Engineer’s Report (the “Specially Benefited Parcels”). For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is included in this Annual Engineer’s Report. 2. I have evaluated the costs and expenses of the improvements upon the Specially Benefited Parcels. In making such evaluation: a. The proportionate special benefit derived by each Specially Benefited Parcel from the improvements was determined in relationship to the entirely of the maintenance costs of the improvements; b. No assessment has been imposed on any Specially Benefited Parcel which exceeds the reasonable cost of the proportional special benefit conferred on such parcel from the improvements; and c. Any general benefits from the improvements have been separated from the special benefits and only special benefits have been assessed. I, the undersigned, respectfully submit the enclosed Annual Engineer’s Report and, to the best of my knowledge, information and belief, I certify that the Annual Engineer’s Report and Assessment Diagram included herein have been prepared and computed in accordance with the order of the City Council of the City of Rancho Cucamonga and the Assessment Law. Jason C. Welday Director of Engineering Services/City Engineer Page 478 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 2 – City of Rancho Cucamonga 3 Fiscal Year 2023/24 ATTACHMENT 11 INTRODUCTION Reason for Assessment Approval of the assessment covered by this Engineer’s Report will generate the revenue necessary to: Provide for the maintenance and servicing of the improvements described in this Engineer’s Report. Maintenance may include but is not limited to, all of the following: the upkeep, repair, removal or replacement of all or any part of any improvement. Servicing means the furnishing of electricity, gas or other illuminating energy for the lighting or appurtenant facilities. This shall also include material, vehicle, equipment, capital improvements, the installation of LED street lighting, and administrative costs associated with the annual administration and operation of the District. Process for Annual Assessment The City cannot levy and collect annual assessments within the District without complying with the procedures specified in the 1972 Act. On an annual basis, an Engineer’s Report must be prepared which contains a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. The City Council must also adopt a resolution of intention which: •Declares the intention of the City Council to levy and collect assessments within the District for the fiscal year stated therein. •Generally describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements. •Refers to the District by its distinctive designation and indicate the general location of the District. •Refers to the Engineer’s Report, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. •Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment. •States whether the assessment is proposed to increase from the previous year. If the assessments are to be levied in the same or lesser amounts than the maximum assessment amount approved, the City Clerk shall give notice by causing the resolution of intention to be published. Any interested person may, prior to the conclusion of the public hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. Page 479 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 2 – City of Rancho Cucamonga 4 Fiscal Year 2023/24 ATTACHMENT 11 During the course or upon conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including the improvements, to the zones within the District, and the proposed diagram or the proposed assessment. The City Council, upon conclusion of the public hearing must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the assessment. If the assessment to be levied exceeds the maximum assessment amount previously approved, the City must comply with the procedures specified in Article XIII D and Proposition 218. The voters in the State of California in November 1996 added Article XIII D to the California Constitution imposing, among other requirements, the necessity for the City to conduct an assessment ballot procedure to enable the owners of each property on which assessments are proposed to be enacted or increased, the opportunity to express their support for, or opposition to, the proposed assessment or increase in such assessment. PLANS AND SPECIFICATIONS The District provides for the administration, maintenance, operations, and servicing of various improvements located within the public right-of-way and dedicated easements within the boundaries of the District. Description of the Boundaries of the District The District is located in the City of Rancho Cucamonga, State of California. The boundaries of the District are generally described as the entire City west of Haven Ave. Reference is also made to the Assessment Diagram included in this Report. Description of Improvements and Services The improvements are the maintenance and servicing of street lights, traffic signals and appurtenant facilities throughout the District. The maintenance and servicing includes, but is not limited to, furnishing electric current for public lighting facilities including street lights and traffic signals, and associated appurtenant facilities. Services include personnel, materials, contracting services, utilities, and all necessary costs associated with the maintenance, replacement and repair required to keep the improvements in operational and satisfactory condition. In addition, it is the City's intention to continue to use cost effective materials, in order to lower expenses of the District. In Fiscal Year 2017/18, the acquisition by the City of the street lights and installation of LED street lighting specially benefiting the properties within the District has been added to the improvements. Page 480 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 2 – City of Rancho Cucamonga 5 Fiscal Year 2023/24 ATTACHMENT 11 Map of Improvements The following page shows the map of street light and traffic signal improvements to be maintained using District funds. Page 481 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 2 – City of Rancho Cucamonga 6 Fiscal Year 2023/24 ATTACHMENT 11 Page 482 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 2 – City of Rancho Cucamonga 7 Fiscal Year 2023/24 ATTACHMENT 11 ESTIMATE OF COSTS The estimated costs of administration, maintenance, operations, and servicing the improvements as described in the Plans and Specifications are summarized below. Each year, as part of the District levy calculation process, the costs and expenses are reviewed and the annual costs are projected for the following fiscal year. District Budget Fis c al Year 2023/24 Budget Expe nditure s Ope rations and M ainte nance : Training 220$ Membership Dues 80 Operations and Maintenanc e 410 Subtotal - Operations and Maintenanc e 710 Contrac t Servic es: Contrac t Servic es /General 20,990 Contrac t Equipment Maintenace/Repair 50 Subtotal - Contrac t Servic es 21,040 Utilities : Electric Utilities 367,250 As s ess ment Adm inis tration 26,350 Admin./General Overhead 2,500 Subtotal - Ope rations and Mainte nance 417,850 T ransfe r Out - Ge ne ral Stre e t Lights Fund 109,330 T otal Expe nditure s Budge t 527,180$ Page 483 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 2 – City of Rancho Cucamonga 8 Fiscal Year 2023/24 ATTACHMENT 11 Fis cal Year 2023/24 Budget Re v e nue s T axe s: Estimated As s es s ments, Net of Es tim ated Delinquenc ies 381,890$ Antic ipated Prior Year Delinquenc ies Collection 4,000 Subtotal - T axe s 385,890 T ransfe r In Transfer In - General Fund 96,900 Transfer In - CFD Em pire Lakes 44,240 Transfer In - CFD Street Lighting Servic es 150 141,290 T otal Re v e nue s Budge t 527,180 Contribution to/(Use of) Fund Balance -$ Total Gros s Es tim ated Assessm ents 381,886.16$ Total District EBU Count 9,554.32 Ac tual As sessm ent per EBU - Fiscal Year 2023/24 39.97$ Maximum Allowable As s em ent per EBU - Fis c al Year 2023/24 39.97$ The maximum allowable assessment per Equivalent Benefit Unit (EBU) listed in the District budget above, is the amount which was approved in Fiscal Year 1996/97 and subsequent District annexations. Each year, prior to the assessments being placed on the tax roll, the City will review the budget and determine the amount needed to maintain the improvements for the upcoming fiscal year. The actual assessment per EBU will be based on the total amount of funds needed to maintain the improvements in a satisfactory and healthy condition. The actual assessment amount may be lower than the maximum allowable assessment; however, it may not exceed the maximum unless the increase is approved by the property owners in accordance with Proposition 218. It is the intent of the City of Rancho Cucamonga to maintain an Operating Reserve which shall not exceed the estimated costs of maintenance and servicing of the improvements prior to December 10 of the fiscal year, or when the City expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. The reserve balance information for the District is as follows: Operating Res erve Es tim ated Reserve Fund Balanc e, June 30, 2023 977,769$ Contribution to/(Us e of) Reserve - Fisc al Year 2023/24 - Es tim ated Reserve Fund Balanc e, June 30, 2024 977,769$ Page 484 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 2 – City of Rancho Cucamonga 9 Fiscal Year 2023/24 ATTACHMENT 11 Definitions of Budget Items The following definitions describe the costs and expenses included in the District Budget: Personnel Services: This item includes the costs attributed to the salaries of all full-time and part-time employees dedicated to maintenance of the District improvements. Additionally, this includes benefits available to City employees. Operations and Maintenance: This item includes the costs of City staff to perform maintenance duties within the boundaries of the District. Utilities: This item includes the costs to furnish electricity and telephone services, as required, for the operation and maintenance of the street lights, traffic signals, and appurtenant facilities throughout the District. Assessment Administration: This item includes the cost to all particular departments and staff of the City, and consultants for providing the administration, coordination and management of District services, operations, and incidental expenses related to the District. This item also includes creation of an annual Engineer's Report, resolutions and placing the assessment amounts onto the County tax roll each year, along with responding to any public inquiries and future Proposition 218 balloting proceedings. General Overhead: This item includes the costs of all central services departments of the City for providing the coordination of District services, inspections, annual bid management, responding to public concerns, public education, accounting, auditing and procedural matters associated with the District. This item also includes an allocation for general City staff time for administrative functions and systems that provide for a functional and operational District within the City's administrative structure. Capital Outlay: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include installation of safety lights and other large improvements. Debt Service: This item includes the repayment of interest and principal to the City Capital Reserve Fund for the acquisition of street lights and installation of LED street lighting within the District. In Fiscal Year 2023/24, the debt service has been suspended due to the structural operating deficit and will be routinely monitored. Transfer Out - General City Street Lights Fund: This item includes the cost for the replacement and installation of District owned street lights. These costs are incurred in the General City Street Lights Fund and reimbursed by the District. Page 485 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 2 – City of Rancho Cucamonga 10 Fiscal Year 2023/24 ATTACHMENT 11 Other Revenues: This includes other revenues that are not levied through the annual assessments that support the District operations. These other revenues may include: interest earnings and Developer Energizing Fees. METHOD OF ASSESSMENT Overview Pursuant to the 1972 Act and Article XIII D, all parcels that have a special benefit conferred upon them as a result of the maintenance and operation of improvements and services shall be identified, and the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entire costs of the maintenance and operation of improvements. The 1972 Act, permits the establishment of assessment districts for the purpose of providing certain public improvements which include the public lighting facilities, including traffic signals. Section 22573 of the 1972 Act requires that maintenance assessments must be levied according to benefit rather than according to assessed value. This Section states: The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefit to be received by each such lot or parcel from the improvements. The determination of whether or not a lot or parcel will benefit from the improvements shall be made pursuant to the Improvement Act of 1911 (Division 7 commencing with Section 5000) [of the Streets and Highways Code, State of California]. Section 22547 of the 1972 Act also permits the designation of zones of benefit within any individual assessment district if "by reasons or variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvement". Article XIII D, Section 4(a) of the California Constitution limits the amount of any assessment to the proportional special benefit conferred on the property. Article XIII D also provides that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment. Exempted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements and rights-of-ways, public greenbelts and public parkways. The net amount to be assessed may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels. Proposition 218, approved by Page 486 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 2 – City of Rancho Cucamonga 11 Fiscal Year 2023/24 ATTACHMENT 11 the voters in November 1996, requires the City to separate general benefit from special benefit, where only special benefit is assessed. Special Benefit The maintenance and servicing of the improvements within the District (which are described in the Description of Improvements and Services Section of this report) are for the benefit of the properties within the District, and as such confer a special and direct benefit to parcels within the District by: •improving the livability, safety, appearance, and desirability for properties within the boundaries of the District, and •ensuring that improvements do not reach a state of deterioration or disrepair so as to be materially detrimental to properties within the District, and •providing for safe vehicular and pedestrian access for properties within the District, and •providing beautification and overall enhancement to properties within the District. The above mentioned items affect the assessed property in a way that is particular and distinct from their effect on other parcels and that real property in general and the public at large do not share. They contribute to a specific enhancement of the properties within the District. Since these improvements were installed and are maintained specifically for the properties within the District; only properties within the District receive a special benefit and are assessed for said maintenance. General Benefit In addition to the special benefits received by parcels within the District, there are derivative general benefits that are conferred on parcels outside the boundaries of the District which include: •the safety and visual enhancement of the area to persons or vehicles that may travel through the District However, it has been determined that these benefits are derivative and do not provide a direct benefit to parcels outside of the District that are not being assessed. Method of Assessment Spread Each of the parcels within the District is deemed to receive special benefit from the improvements. Each parcel that has a special benefit conferred upon it as a result of the maintenance and operation of improvements are identified and the proportionate special benefit derived by each identified parcel is determined in relationship to the entire costs of the maintenance and operation of the improvements. Page 487 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 2 – City of Rancho Cucamonga 12 Fiscal Year 2023/24 ATTACHMENT 11 When the District was formed, Article XIII D and Proposition 218 had not yet been passed. Upon the passage of Article XIII D and the subsequent passage of the Proposition Omnibus Implementation Act, new rules were put into place. Due to the changes in legal requirements, as property annexed to the District after the passage of the Assessment Law, the description of the method of assessment became more refined; however, the assessment per parcel has remained the same since Fiscal Year 1996/97. Further, no parcel included in the District formation or annexations prior to when the language was refined, are now being levied differently than they were at the time the District was formed or the parcels were annexed. To assess special benefit appropriately, it is necessary to relate the different type of parcel improvements to each other. The EBU method of apportionment uses the single-family home as the basic unit of assessment. A single-family home equals one EBU. Every other land-use is converted to EBUs based on an assessment formula that equates to the property's specific development status, type of development (land-use), and size of the property, as compared to a single-family home. The following table provides the weighting factors applied to various land-use types, as assigned by County use code, to determine each parcel's EBU assignment. Land-Use Equivalent Dwelling Units Prope rty T ype (County Use Code )EBU Value Multiplie r Single Fam ily Residential 1.00 Parcel Multi-Family Res idential 1.00 Unit Non-Res idential 2.00 Ac re The use of the latest County Assessor's Secured Roll shall be the basis for the Property Type determination and units/acreage assignments, unless better data is available to the City. In addition, if any parcel within the District is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, the Property Type and EBU assignment shall be based on the correct parcel number and/or new parcel number(s) County use code and subsequent property information. If a single parcel has changed to multiple parcels, the EBU assignment and assessment amount applied to each of the new parcels will be recalculated rather than spread the proportionate share of the original assessment. Page 488 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 2 – City of Rancho Cucamonga 13 Fiscal Year 2023/24 ATTACHMENT 11 The following table summarizes the Fiscal Year 2023/24 maximum allowable assessment rates for the District: Prope rty T ype (County Use Code ) Maximum Allowable Asse ssme nt Rate pe r EBU Actual Asessment Rate pe r EBU T otal Units/Acre s T otal EBUs Single Fam ily Res idential $39.97 $39.97 7,339.00 7,339.00 Multi-Family Residential 39.97 39.97 2,145.00 2,145.00 Non-Residential 39.97 39.97 35.16 70.32 The total amount of maintenance and incidental costs for maintaining the street lights and traffic signals is assessed to the individual parcels of real property within the District in proportion to the special benefit received by such parcels of real property. The proposed individual assessments are shown on the assessment roll in this report. ASSESSMENT DIAGRAM An Assessment Diagram for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Assessor of the County San Bernardino, at the time this report was prepared, and are incorporated by reference herein and made part of this Engineer's Report. Page 489 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 2 – City of Rancho Cucamonga 14 Fiscal Year 2023/24 ATTACHMENT 11 Page 490 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 2 – City of Rancho Cucamonga 15 Fiscal Year 2023/24 ATTACHMENT 11 ASSESSMENT ROLL AND ANNEXATIONS Assessment Roll The assessment roll is a listing of the assessment for Fiscal Year 2023/24 apportioned to each lot or parcel, as shown on the last equalized roll of the Assessor of the County of San Bernardino. The following table summarizes the Fiscal Year 2023/24 actual assessments for the District: Prope rty T ype (County Use Code ) Actual Asse ssme nt Rate per EBU T otal Units/Acre s T otal EBUs T otal Asse ssme nt Single Family Residential $39.97 7,339.00 7,339.00 293,339.83$ Multi-Fam ily Residential 39.97 2,145.00 2,145.00 85,735.65$ Non-Res idential 39.97 35.16 70.32 2,810.68$ T otals 9,519.16 9,554.32 381,886.16$ A copy of the full assessment roll is available for review in the City Clerk's office. Annexations The following annexations are effective for Fiscal Year 2023/24: Apn Anne xation Date Proje ct Name T otal Units/ Acres T otal EBUs Prope rty T ype 1090-251-29 02/22/22 PMT2021-03992 1.00 1.00 Single-Family Res 1100-191-04 02/02/22 SUBTT20148 131.00 131.00 Multi-Fam ily Res 0209-361-09 08/03/22 PMT2021-05731 1.00 1.00 Single-Family Res 0202-061-32 11/02/22 SUBTT20353 6.00 6.00 Single-Family Res 0202-981-19 11/16/22 DRC2020-00157 1.00 1.00 Single-Family Res Page 491 of 715 ATTACHMENT 12 Annual Engineer’s Report Fiscal Year 2023/24 City of Rancho Cucamonga Street Lighting Maintenance District No. 3 (Victoria Planned Community) Page 492 of 715 CITY OF RANCHO CUCAMONGA STREET LIGHTING MAINTENANCE DISTRICT NO. 3 (VICTORIA PLANNED COMMUNITY) 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909.477.2700 Fax: 909.477.2845 CITY COUNCIL L. Dennis Michael, Mayor Lynne B. Kennedy, Mayor Pro Tem Ryan A. Hutchison, Council Member Kristine D. Scott, Council Member Ashley N. Stickler, Council Member CITY STAFF John R. Gillison, City Manager Elisa Cox, Assistant City Manager Jason C. Welday, Director of Engineering Services/City Engineer William Wittkopf, Public Works Director Noah Daniels, Finance Director Page 493 of 715 TABLE OF CONTENTS ENGINEER’S LETTER 1 INTRODUCTION 3 Reason for Assessment 3 Process for Annual Assessment 3 PLANS AND SPECIFICATIONS 4 Description of the Boundaries of the District 4 Description of Improvements and Services 4 Map of Improvements 5 ESTIMATE OF COSTS 7 District Budget 7 Definitions of Budget Items 9 METHOD OF ASSESSMENT 10 Overview 10 Special Benefit 11 General Benefit 11 Method of Assessment Spread 11 ASSESSMENT DIAGRAM 13 ASSESSMENT ROLL AND ANNEXATIONS 15 Assessment Roll 15 Annexations 15 Page 494 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 3 – City of Rancho Cucamonga 1 Fiscal Year 2023/24 ATTACHMENT 12 ENGINEER’S LETTER WHEREAS, on June 7, 2023, the City Council of Rancho Cucamonga (the “City”), under the Landscaping and Lighting Act of 1972 (the “1972 Act”) adopted its Resolution No. 2023-058, a Resolution Initiating Proceedings for the Levy of Annual Assessments for Street Light Maintenance District No. 3 (Victoria Planned Community) (the “District”); and WHEREAS, the Resolution Initiating Proceedings directed the City Engineer to prepare and file an Annual Engineer’s Report for Fiscal Year 2023/24 pursuant to the requirements of the 1972 Act. The Annual Engineer’s Report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the maintenance, operations and servicing of the improvements for the District for the referenced fiscal year, a diagram for the District, showing the area and properties proposed to be assessed, and an assessment of the estimated costs of the maintenance, operations and servicing of the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received; and NOW THEREFORE, the following assessment is proposed to be authorized in order to pay for the acquisition of street lights, the installation of Light Emitting Diode (LED) street lighting, and estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the boundaries of the District in proportion to the special benefit received. The following table summarizes the proposed assessment. Fisc al Year 2023/24 Budget Expe nditure s Personnel Servic es 52,410$ Operations and Maintenanc e 191,050 Trans fer Out 43,370 T otal Expe nditure s Budge t 286,830 Re v e nue s Taxes: Es timated Ass es sm ents , Net of Es tim ated Delinquenc ies 381,410 Anticipated Prior Year Delinquencies Collection 2,730 Subtotal - Taxes 384,140 Other Revenues 11,590 T otal Re v e nue s Budge t 395,730 Contribution to/(Use of) Fund Balance 108,900$ Total Dis tric t EBU Count 8,089.24 Ac tual As s es s ment per EBU 47.15$ Maximum Allowable Ass es sm ent per EBU 47.15$ Page 495 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 3 – City of Rancho Cucamonga 2 Fiscal Year 2023/24 ATTACHMENT 12 In making the assessments contained herein pursuant to the 1972 Act: 1. I have identified all parcels which will have a special benefit conferred upon them from the improvement described in the Special Benefit Section of this Annual Engineer’s Report (the “Specially Benefited Parcels”). For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is included in this Annual Engineer’s Report. 2. I have evaluated the costs and expenses of the improvements upon the Specially Benefited Parcels. In making such evaluation: a. The proportionate special benefit derived by each Specially Benefited Parcel from the improvements was determined in relationship to the entirety of the maintenance costs of the improvements; b. No assessment has been imposed on any Specially Benefited Parcel which exceeds the reasonable cost of the proportional special benefit conferred on such parcel from the improvements; and c. Any general benefits from the improvements have been separated from the special benefits and only special benefits have been assessed. I, the undersigned, respectfully submit the enclosed Annual Engineer’s Report and, to the best of my knowledge, information and belief, I certify that the Annual Engineer’s Report and Assessment Diagram included herein have been prepared and computed in accordance with the order of the City Council of the City of Rancho Cucamonga and the Assessment Law. Jason C. Welday Director of Engineering Services/City Engineer Page 496 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 3 – City of Rancho Cucamonga 3 Fiscal Year 2023/24 ATTACHMENT 12 INTRODUCTION Reason for Assessment Approval of the assessment covered by this Engineer’s Report will generate the revenue necessary to: Provide for the maintenance and servicing of the improvements described in this Engineer’s Report. Maintenance may include but is not limited to, all of the following: the upkeep, repair, removal or replacement of all or any part of any improvement. Servicing means the furnishing of electricity, gas or other illuminating energy for the lighting or appurtenant facilities. This shall also include material, vehicle, equipment, capital improvements, the installation of LED street lighting, and administrative costs associated with the annual administration and operation of the District. Process for Annual Assessment The City cannot levy and collect annual assessments within the District without complying with the procedures specified in the 1972 Act. On an annual basis, an Engineer’s Report must be prepared which contains a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. The City Council must also adopt a resolution of intention which: •Declares the intention of the City Council to levy and collect assessments within the District for the fiscal year stated therein. •Generally describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements. •Refers to the District by its distinctive designation and indicate the general location of the District. •Refers to the Engineer’s Report, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. •Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment. •States whether the assessment is proposed to increase from the previous year. If the assessments are to be levied in the same or lesser amounts than the maximum assessment amount approved, the City Clerk shall give notice by causing the resolution of intention to be published. Any interested person may, prior to the conclusion of the public hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. Page 497 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 3 – City of Rancho Cucamonga 4 Fiscal Year 2023/24 ATTACHMENT 12 During the course or upon conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including the improvements, to the zones within the District, and the proposed diagram or the proposed assessment. The City Council, upon conclusion of the public hearing must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the assessment. If the assessment to be levied exceeds the maximum assessment amount previously approved, the City must comply with the procedures specified in Article XIII D and Proposition 218. The voters in the State of California in November 1996 added Article XIII D to the California Constitution imposing, among other requirements, the necessity for the City to conduct an assessment ballot procedure to enable the owners of each property on which assessments are proposed to be enacted or increased, the opportunity to express their support for, or opposition to, the proposed assessment or increase in such assessment. PLANS AND SPECIFICATIONS The District provides for the administration, maintenance, operations, and servicing of various improvements located within the public right-of-way and dedicated easements within the boundaries of the District. Description of the Boundaries of the District The District is located in the City of Rancho Cucamonga, State of California. The boundaries of the District are generally described as that area located south of the 210 Freeway, west of Etiwanda Ave, southwest of the I-15 Freeway and east of Haven Ave, also known as the Victoria Neighborhood Planned Community, and are more particularly in the diagram of the District included herein. Reference is also made to the Assessment Diagram included in this Report. Description of Improvements and Services The improvements are the maintenance and servicing of street lights, traffic signals and appurtenant facilities throughout the District. The maintenance and servicing includes, but is not limited to, furnishing electric current for public lighting facilities including street lights and traffic signals, and associated appurtenant facilities. Services include personnel, materials, contracting services, utilities, and all necessary costs associated with the maintenance, replacement and repair required to keep the improvements in operational and satisfactory condition. In addition, it is the City's intention to continue to use cost effective materials, in order to lower expenses of the District. In Fiscal Year 2017/18, the acquisition by the City of the street lights and installation of LED street lighting specially benefiting the properties within the District has been added to the improvements. Page 498 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 3 – City of Rancho Cucamonga 5 Fiscal Year 2023/24 ATTACHMENT 12 Map of Improvements The following page shows the map of street light and traffic signal improvements to be maintained using District funds. Page 499 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 3 – City of Rancho Cucamonga 6 Fiscal Year 2023/24 ATTACHMENT 12 Page 500 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 3 – City of Rancho Cucamonga 7 Fiscal Year 2023/24 ATTACHMENT 12 ESTIMATE OF COSTS The estimated costs of administration, maintenance, operations, and servicing the improvements as described in the Plans and Specifications are summarized below. Each year, as part of the District levy calculation process, the costs and expenses are reviewed and the annual costs are projected for the following fiscal year. District Budget Fis c al Year 2023/24 Budget Expe nditure s Pe rsonne l Se rv ice s: Regular Salaries 34,940$ Fringe Benefits 17,470 Subtotal - Pe rsonne l 52,410 Ope rations and M ainte nance : Operations and Maintenanc e: Training 220 Membership Dues 80 O & M/General 200 Contrac t Servic es 8,050 Contrac t Equipment Maintenanc e/Repair 30 Subtotal - Operations and Maintenanc e 8,580 Electric Utilities 146,200 As s ess ment Adm inis tration 24,820 Admin./General Overhead 11,450 Subtotal - Ope rations and Mainte nance 191,050 T ransfe r Out - Ge ne ral Stre e t Lights Fund 43,370 T otal Expe nditure s Budge t 286,830$ Page 501 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 3 – City of Rancho Cucamonga 8 Fiscal Year 2023/24 ATTACHMENT 12 Fisc al Year 2023/24 Budget Re v e nue s T axe s: Es tim ated As ses s m ents , Net of Es tim ated Delinquencies 381,410$ Antic ipated Prior Year Delinquencies Collection 2,730 Subtotal - T axe s 384,140 Othe r Re v e nue s: Interes t Earnings 11,590 T otal Re v e nue s Budge t 395,730 Contribution to/(Use of) Fund Balance 108,900$ Total Gross Es tim ated As ses s m ents 381,407.64$ Total Dis tric t EBU Count 8,089.24 Ac tual As s ess m ent per EBU - Fisc al Year 2023/24 47.15$ Maximum Allowable Ass es sm ent per EBU - Fis cal Year 2023/24 47.15$ The maximum allowable assessment per Equivalent Benefit Unit (EBU) listed in the District budget above, is the amount which was approved in Fiscal Year 1996/97 and subsequent District annexations. Each year, prior to the assessments being placed on the tax roll, the City will review the budget and determine the amount needed to maintain the improvements for the upcoming fiscal year. The actual assessment per EBU will be based on the total amount of funds needed to maintain the improvements in a satisfactory and healthy condition. The actual assessment amount may be lower than the maximum allowable assessment; however, it may not exceed the maximum unless the increase is approved by the property owners in accordance with Proposition 218. It is the intent of the City to maintain an Operating Reserve which shall not exceed the estimated costs of maintenance and servicing of the improvements prior to December 10 of the fiscal year, or when the City expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. The reserve balance information for the District is as follows: Operating Reserve Estim ated Res erve Fund Balanc e, June 30, 2023 637,671$ Contribution to/(Us e of) Res erve - Fisc al Year 2023/24 108,900 Estim ated Res erve Fund Balanc e, June 30, 2024 746,571$ Page 502 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 3 – City of Rancho Cucamonga 9 Fiscal Year 2023/24 ATTACHMENT 12 Definitions of Budget Items The following definitions describe the costs and expenses included in the District Budget: Personnel Services: This item includes the costs attributed to the salaries of all full-time and part-time employees dedicated to maintenance of the District improvements. Additionally, this includes benefits available to City employees. Operations and Maintenance: This item includes the costs of City staff to perform maintenance duties within the boundaries of the District. Utilities: This item includes the costs to furnish electricity and telephone services, as required, for the operation and maintenance of the street lights, traffic signals, and appurtenant facilities throughout the District. Assessment Administration: This item includes the cost to all particular departments and staff of the City, and consultants for providing the administration, coordination and management of District services, operations, and incidental expenses related to the District. This item also includes creation of an annual Engineer's Report, resolutions and placing the assessment amounts onto the County tax roll each year, along with responding to any public inquiries and future Proposition 218 balloting proceedings. General Overhead: This item includes the costs of all central services departments of the City for providing the coordination of District services, inspections, annual bid management, responding to public concerns, public education, accounting, auditing and procedural matters associated with the District. This item also includes an allocation for general City staff time for administrative functions and systems that provide for a functional and operational District within the City's administrative structure. Capital Outlay: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include installation of safety lights and other large improvements. Debt Service: This item includes the repayment of interest and principal to the City General Fund for the acquisition of street lights and installation of LED street lighting within the District. In FY 2021/22, the outstanding balance of the interfund was fully repaid. Transfer Out - General City Street Lights Fund: This item includes the cost for the replacement and installation of District owned street lights. These costs are incurred in the General City Street Lights Fund and reimbursed by the District. Other Revenues: This includes other revenues that are not levied through the annual assessments that support the District operations. These other revenues may include: interest earnings and Developer Energizing Fees. Page 503 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 3 – City of Rancho Cucamonga 10 Fiscal Year 2023/24 ATTACHMENT 12 METHOD OF ASSESSMENT Overview Pursuant to the 1972 Act and Article XIII D, all parcels that have a special benefit conferred upon them as a result of the maintenance and operation of improvements and services shall be identified, and the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entire costs of the maintenance and operation of improvements. The 1972 Act, permits the establishment of assessment districts for the purpose of providing certain public improvements which include the public lighting facilities, including traffic signals. Section 22573 of the 1972 Act requires that maintenance assessments must be levied according to benefit rather than according to assessed value. This Section states: The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefit to be received by each such lot or parcel from the improvements. The determination of whether or not a lot or parcel will benefit from the improvements shall be made pursuant to the Improvement Act of 1911 (Division 7 commencing with Section 5000) [of the Streets and Highways Code, State of California]. Section 22547 of the 1972 Act also permits the designation of zones of benefit within any individual assessment district if "by reasons or variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvement". Article XIII D, Section 4(a) of the California Constitution limits the amount of any assessment to the proportional special benefit conferred on the property. Article XIII D also provides that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment. Exempted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements and rights-of-ways, public greenbelts and public parkways. The net amount to be assessed may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels. Proposition 218, approved by the voters in November 1996, requires the City to separate general benefit from special benefit, where only special benefit is assessed. Page 504 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 3 – City of Rancho Cucamonga 11 Fiscal Year 2023/24 ATTACHMENT 12 Special Benefit The maintenance and servicing of the improvements within the District (which are described in the Description of Improvements and Services Section of this report) are for the benefit of the properties within the District, and as such confer a special and direct benefit to parcels within the District by: •improving the livability, safety, appearance, and desirability for properties within the boundaries of the District, and •ensuring that improvements do not reach a state of deterioration or disrepair so as to be materially detrimental to properties within the District, and •providing for safe vehicular and pedestrian access for properties within the District, and •providing beautification and overall enhancement to properties within the District. The above mentioned items affect the assessed property in a way that is particular and distinct from their effect on other parcels and that real property in general and the public at large do not share. They contribute to a specific enhancement of the properties within the District. Since these improvements were installed and are maintained specifically for the properties within the District; only properties within the District receive a special benefit and are assessed for said maintenance. General Benefit In addition to the special benefits received by parcels within the District, there are derivative general benefits that are conferred on parcels outside the boundaries of the District which include: •the safety and visual enhancement of the area to persons or vehicles that may travel through the District However, it has been determined that these benefits are derivative and do not provide a direct benefit to parcels outside of the district that are not being assessed. Method of Assessment Spread Each of the parcels within the District is deemed to receive special benefit from the improvements. Each parcel that has a special benefit conferred upon it as a result of the maintenance and operation of improvements are identified and the proportionate special benefit derived by each identified parcel is determined in relationship to the entire costs of the maintenance and operation of the improvements. When the District was formed, Article XIII D and Proposition 218 had not yet been passed. Upon the passage of Article XIII D and the subsequent passage of the Proposition Omnibus Implementation Act, new rules were put into place. Due to the changes in legal requirements, as Page 505 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 3 – City of Rancho Cucamonga 12 Fiscal Year 2023/24 ATTACHMENT 12 property annexed to the District after the passage of the Assessment Law, the description of the method of assessment became more refined; however, the assessment per parcel has remained the same since Fiscal Year 1996/97. Further, no parcel included in the District formation or annexations prior to when the language was refined, are now being levied differently than they were at the time the District was formed or the parcels were annexed. To assess special benefit appropriately, it is necessary to relate the different type of parcel improvements to each other. The EBU method of apportionment uses the single-family home as the basic unit of assessment. A single-family home equals one Equivalent Dwelling Unit (EBU). Every other land-use is converted to EBUs based on an assessment formula that equates to the property's specific development status, type of development (land-use), and size of the property, as compared to a single-family home. The following table provides the weighting factors applied to various land- use types, as assigned by County use code, to determine each parcel's EBU assignment. Land-Use Equivalent Dwelling Units Prope rty T ype (County Use Code )EBU Value M ultiplie r Single Family Res idential 1.00 Parc el Multi-Fam ily Residential 1.00 Unit Non-Res idential 2.00 Acre The use of the latest County Assessor's Secured Roll shall be the basis for the Property Type determination and units/acreage assignments, unless better data is available to the City. In addition, if any parcel within the District is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, the Property Type and EBU assignment shall be based on the correct parcel number and/or new parcel number(s) County use code and subsequent property information. If a single parcel has changed to multiple parcels, the EBU assignment and assessment amount applied to each of the new parcels will be recalculated rather than spread the proportionate share of the original assessment. The following table summarizes the Fiscal Year 2023/24 maximum allowable assessment rates for the District: Prope rty T ype (County Use Code ) Maximum Allowable Assessment Rate pe r EBU Actual Asessme nt Rate pe r EBU T otal Units/Acres T otal EBUs Single Fam ily Residential $47.15 $47.15 6,843.00 6,843.00 Multi-Family Residential 47.15 47.15 729.00 729.00 Non-Res idential 47.15 47.15 258.62 517.24 Page 506 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 3 – City of Rancho Cucamonga 13 Fiscal Year 2023/24 ATTACHMENT 12 The total amount of maintenance and incidental costs for maintaining the street lights and traffic signals is assessed to the individual parcels of real property within the District in proportion to the special benefit received by such parcels of real property. The proposed individual assessments are shown on the assessment roll in this report. ASSESSMENT DIAGRAM An Assessment Diagram for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Assessor of the County San Bernardino, at the time this report was prepared, and are incorporated by reference herein and made part of this Engineer's Report. Page 507 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 3 – City of Rancho Cucamonga 14 Fiscal Year 2023/24 ATTACHMENT 12 Page 508 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 3 – City of Rancho Cucamonga 15 Fiscal Year 2023/24 ATTACHMENT 12 ASSESSMENT ROLL AND ANNEXATIONS Assessment Roll The assessment roll is a listing of the assessment for Fiscal Year 2023/24 apportioned to each lot or parcel, as shown on the last equalized roll of the Assessor of the County of San Bernardino. The following table summarizes the Fiscal Year 2023/24 actual assessments for the District: Property T ype (County Use Code ) Actual Asse ssme nt Rate pe r EBU T otal Units/Acre s T otal EBUs T otal Asse ssment Single Family Residential $47.15 6,843.00 6,843.00 $322,647.45 Multi-Family Residential 47.15 729.00 729.00 34,372.35 Non-Res idential 47.15 258.62 517.24 24,387.84 T otals 7,830.62 8,089.24 $381,407.64 A copy of the full assessment roll is available for review in the City Clerk's office. Annexations There are no effective annexations for Fiscal Year 2023/24. Page 509 of 715 ATTACHMENT 13 Annual Engineer’s Report Fiscal Year 2023/24 City of Rancho Cucamonga Street Lighting Maintenance District No. 4 (Terra Vista Planned Community) Page 510 of 715 CITY OF RANCHO CUCAMONGA STREET LIGHTING MAINTENANCE DISTRICT NO. 4 (TERRA VISTA PLANNED COMMUNITY) 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909.477.2700 Fax: 909.477.2845 CITY COUNCIL L. Dennis Michael, Mayor Lynne B. Kennedy, Mayor Pro Tem Ryan A. Hutchison, Council Member Kristine D. Scott, Council Member Ashley N. Stickler, Council Member CITY STAFF John R. Gillison, City Manager Elisa Cox, Assistant City Manager Jason C. Welday, Director of Engineering Services/City Engineer William Wittkopf, Public Works Director Noah Daniels, Finance Director Page 511 of 715 TABLE OF CONTENTS ENGINEER’S LETTER 1 INTRODUCTION 3 Reason for Assessment 3 Process for Annual Assessment 3 PLANS AND SPECIFICATIONS 4 Description of the Boundaries of the District 4 Description of Improvements and Services 4 Map of Improvements 5 ESTIMATE OF COSTS 7 District Budget 7 Definitions of Budget Items 9 METHOD OF ASSESSMENT 10 Overview 10 Special Benefit 11 General Benefit 11 Method of Assessment Spread 11 ASSESSMENT DIAGRAM 13 ASSESSMENT ROLL AND ANNEXATIONS 15 Assessment Roll 15 Annexations 15 Page 512 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 4 – City of Rancho Cucamonga 1 Fiscal Year 2023/24 ATTACHMENT 13 ENGINEER’S LETTER WHEREAS, on June 7, 2023, the City Council of Rancho Cucamonga (the “City”), under the Landscaping and Lighting Act of 1972 (the “1972 Act”) adopted its Resolution No. 2023-058, a Resolution Initiating Proceedings for the Levy of Annual Assessments for Street Light Maintenance District No. 4 (Terra Vista Planned Community) (the “District”); and WHEREAS, the Resolution Initiating Proceedings directed the City Engineer to prepare and file an Annual Engineer’s Report for Fiscal Year 2023/24 pursuant to the requirements of the 1972 Act. The Annual Engineer’s Report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the maintenance, operations and servicing of the improvements for the District for the referenced fiscal year, a diagram for the District, showing the area and properties proposed to be assessed, and an assessment of the estimated costs of the maintenance, operations and servicing of the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received; and NOW THEREFORE, the following assessment is proposed to be authorized in order to pay for the acquisition of street lights, the installation of Light Emitting Diode (LED) street lighting, and estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the boundaries of the District in proportion to the special benefit received. The following table summarizes the proposed assessment. Fisc al Year 2023/24 Budget Expe nditure s Personnel Servic es 53,600$ Operations and Maintenanc e 97,670 Debt Servic e 11,220 Transfer Out 20,130 T otal Expe nditure s Budge t 182,620 Re v e nue s Taxes : Es timated Asses sm ents , Net of Es tim ated Delinquenc ies 166,400 Antic ipated Prior Year Delinquenc ies Collec tion 730 Subtotal - Taxes 167,130 Other Revenues 1,440 T otal Re v e nue s Budge t 168,570 Contribution to/(Use of) Fund Balance (14,050)$ Total Dis trict EBU Count 5,745.78 Ac tual Ass essm ent per EBU 28.96$ Maxim um Allowable Asses sm ent per EBU 28.96$ Page 513 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 4 – City of Rancho Cucamonga 2 Fiscal Year 2023/24 ATTACHMENT 13 In making the assessments contained herein pursuant to the 1972 Act: 1. I have identified all parcels which will have a special benefit conferred upon them from the improvement described in the Special Benefit Section of this Annual Engineer’s Report (the “Specially Benefited Parcels”). For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is included in this Annual Engineer’s Report. 2. I have evaluated the costs and expenses of the improvements upon the Specially Benefited Parcels. In making such evaluation: a. The proportionate special benefit derived by each Specially Benefited Parcel from the improvements was determined in relationship to the entirety of the maintenance costs of the improvements; b. No assessment has been imposed on any Specially Benefited Parcel which exceeds the reasonable cost of the proportional special benefit conferred on such parcel from the improvements; and c. Any general benefits from the improvements have been separated from the special benefits and only special benefits have been assessed. I, the undersigned, respectfully submit the enclosed Annual Engineer’s Report and, to the best of my knowledge, information and belief, I certify that the Annual Engineer’s Report and Assessment Diagram included herein have been prepared and computed in accordance with the order of the City Council of the City of Rancho Cucamonga and the Assessment Law. Jason C. Welday Director of Engineering Services/City Engineer Page 514 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 4 – City of Rancho Cucamonga 3 Fiscal Year 2023/24 ATTACHMENT 13 INTRODUCTION Reason for Assessment Approval of the assessment covered by this Engineer’s Report will generate the revenue necessary to: Provide for the maintenance and servicing of the improvements described in this Engineer’s Report. Maintenance may include but is not limited to, all of the following: the upkeep, repair, removal or replacement of all or any part of any improvement. Servicing means the furnishing of electricity, gas or other illuminating energy for the lighting or appurtenant facilities. This shall also include material, vehicle, equipment, capital improvements, the installation of LED street lighting, and administrative costs associated with the annual administration and operation of the District. Process for Annual Assessment The City cannot levy and collect annual assessments within the District without complying with the procedures specified in the 1972 Act. On an annual basis, an Engineer’s Report must be prepared which contains a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. The City Council must also adopt a resolution of intention which: •Declares the intention of the City Council to levy and collect assessments within the District for the fiscal year stated therein. •Generally describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements. •Refers to the District by its distinctive designation and indicate the general location of the District. •Refers to the Engineer’s Report, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. •Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment. •States whether the assessment is proposed to increase from the previous year. If the assessments are to be levied in the same or lesser amounts than the maximum assessment amount approved, the City Clerk shall give notice by causing the resolution of intention to be published. Any interested person may, prior to the conclusion of the public hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. Page 515 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 4 – City of Rancho Cucamonga 4 Fiscal Year 2023/24 ATTACHMENT 13 During the course or upon conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including the improvements, to the zones within the District, and the proposed diagram or the proposed assessment. The City Council, upon conclusion of the public hearing must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the assessment. If the assessment to be levied exceeds the maximum assessment amount previously approved, the City must comply with the procedures specified in Article XIII D and Proposition 218. The voters in the State of California in November 1996 added Article XIII D to the California Constitution imposing, among other requirements, the necessity for the City to conduct an assessment ballot procedure to enable the owners of each property on which assessments are proposed to be enacted or increased, the opportunity to express their support for, or opposition to, the proposed assessment or increase in such assessment. PLANS AND SPECIFICATIONS The District provides for the administration, maintenance, operations, and servicing of various improvements located within the public right-of-way and dedicated easements within the boundaries of the District. Description of the Boundaries of the District The District is located in the City of Rancho Cucamonga, State of California. The boundaries of the District are generally described as that area of the City known as the Terra Vista Planned Community, which is located north of Foothill Blvd, west of Rochester Ave, east of Haven Ave, south of Base Line Rd and includes the northeast corner of Base Line Rd and Haven Ave. Reference is also made to the Assessment Diagram included in this Report. Description of Improvements and Services The improvements are the maintenance and servicing of street lights, traffic signals and appurtenant facilities throughout the District. The maintenance and servicing includes, but is not limited to, furnishing electric current for public lighting facilities including street lights and traffic signals, and associated appurtenant facilities. Services include personnel, materials, contracting services, utilities, and all necessary costs associated with the maintenance, replacement and repair required to keep the improvements in operational and satisfactory condition. In addition, it is the City's intention to continue to use cost effective materials, in order to lower expenses of the District. In Fiscal Year 2017/18, the acquisition by the City of the street lights and installation of LED street lighting specially benefiting the properties within the District has been added to the improvements. Page 516 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 4 – City of Rancho Cucamonga 5 Fiscal Year 2023/24 ATTACHMENT 13 Map of Improvements The following page shows the map of street light and traffic signal improvements to be maintained using District funds. Page 517 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 4 – City of Rancho Cucamonga 6 Fiscal Year 2023/24 ATTACHMENT 13 Page 518 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 4 – City of Rancho Cucamonga 7 Fiscal Year 2023/24 ATTACHMENT 13 ESTIMATE OF COSTS The estimated costs of administration, maintenance, operations, and servicing the improvements as described in the Plans and Specifications are summarized below. Each year, as part of the District levy calculation process, the costs and expenses are reviewed and the annual costs are projected for the following fiscal year. District Budget Fis c al Year 2023/24 Budget Expe nditure s Pe rsonne l Se rv ice s: Regular Salaries 35,730$ Fringe Benefits 17,870 Subtotal - Pe rsonne l 53,600 Ope rations and M ainte nance : Operations and Maintenanc e: Training 220 Membership Dues 80 O & M/General 1,070 Contrac t Servic es 3,730 Contrac t Equipment Maintenace/Repair 110 Subtotal - Operations and Maintenanc e 5,210 Utilities : Electric Utilities 69,260 As s ess ment Adm inis tration 14,420 Admin./General Overhead 8,780 Subtotal - Ope rations and Mainte nance 97,670 De bt Se rv ice : Interes t Expens e 1,360 Princ ipal Repaym ents 9,860 Subtotal - De bt Se rv ice 11,220 T ransfe r Out - Ge ne ral City Stre e t Lights Fund 20,130 T otal Expe nditure s Budge t 182,620$ Page 519 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 4 – City of Rancho Cucamonga 8 Fiscal Year 2023/24 ATTACHMENT 13 Fiscal Year 2023/24 Budget Re v e nue s T axe s: Estimated Ass es sm ents, Net of Es tim ated Delinquenc ies 166,400$ Anticipated Prior Year Delinquenc ies Collection 730 Subtotal - T axe s 167,130 Othe r Re v e nue s: Interest Earnings 1,440 T otal Re v e nue s Budge t 168,570 Contribution to/(Use of) Fund Balance (14,050)$ Total Gros s Estimated Ass es sm ents 166,397.79$ Total Dis tric t EBU Count 5,745.78 Ac tual As ses s ment per EBU - Fis c al Year 2023/24 28.96$ Maxim um Allowable As s ess m ent per EBU - Fisc al Year 2023/24 28.96$ The maximum allowable assessment per Equivalent Benefit Unit (EBU) listed in the District budget above, is the amount which was approved in Fiscal Year 1996/97 and subsequent District annexations. Each year, prior to the assessments being placed on the tax roll, the City will review the budget and determine the amount needed to maintain the improvements for the upcoming fiscal year. The actual assessment per EBU will be based on the total amount of funds needed to maintain the improvements in a satisfactory and healthy condition. The actual assessment amount may be lower than the maximum allowable assessment; however, it may not exceed the maximum unless the increase is approved by the property owners in accordance with Proposition 218. It is the intent of the City to maintain an Operating Reserve which shall not exceed the estimated costs of maintenance and servicing of the improvements prior to December 10 of the fiscal year, or when the City expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. The reserve balance information for the District is as follows: Operating Res erve Es tim ated Res erve Fund Balanc e, June 30, 2023 102,919$ Contribution to/(Us e of) Res erve - Fiscal Year 2023/24 (14,050) Es tim ated Res erve Fund Balanc e, June 30, 2024 88,869$ Page 520 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 4 – City of Rancho Cucamonga 9 Fiscal Year 2023/24 ATTACHMENT 13 Definitions of Budget Items The following definitions describe the costs and expenses included in the District Budget: Personnel Services: This item includes the costs attributed to the salaries of all full-time and part-time employees dedicated to maintenance of the District improvements. Additionally, this includes benefits available to City employees. Operations and Maintenance: This item includes the costs of City staff to perform maintenance duties within the boundaries of the District. Utilities: This item includes the costs to furnish electricity and telephone services, as required, for the operation and maintenance of the street lights, traffic signals, and appurtenant facilities throughout the District. Assessment Administration: This item includes the cost to all particular departments and staff of the City, and consultants for providing the administration, coordination and management of District services, operations, and incidental expenses related to the District. This item also includes creation of an annual Engineer's Report, resolutions and placing the assessment amounts onto the County tax roll each year, along with responding to any public inquiries and future Proposition 218 balloting proceedings. General Overhead: This item includes the costs of all central services departments of the City for providing the coordination of District services, inspections, annual bid management, responding to public concerns, public education, accounting, auditing and procedural matters associated with the District. This item also includes an allocation for general City staff time for administrative functions and systems that provide for a functional and operational District within the City's administrative structure. Capital Outlay: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include installation of safety lights and other large improvements. Debt Service: This item includes the repayment of interest and principal to the City Capital Reserve Fund for the acquisition of street lights and installation of LED street lighting within the District. Transfer Out - General City Street Lights Fund: This item includes the cost for the replacement and installation of District owned street lights. These costs are incurred in the General City Street Lights Fund and reimbursed by the District. Other Revenues: This includes other revenues that are not levied through the annual assessments that support the District operations. These other revenues may include: interest earnings and Developer Energizing Fees. Page 521 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 4 – City of Rancho Cucamonga 10 Fiscal Year 2023/24 ATTACHMENT 13 METHOD OF ASSESSMENT Overview Pursuant to the 1972 Act and Article XIII D, all parcels that have a special benefit conferred upon them as a result of the maintenance and operation of improvements and services shall be identified, and the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entire costs of the maintenance and operation of improvements. The 1972 Act, permits the establishment of assessment districts for the purpose of providing certain public improvements which include the public lighting facilities, including traffic signals. Section 22573 of the 1972 Act requires that maintenance assessments must be levied according to benefit rather than according to assessed value. This Section states: The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefit to be received by each such lot or parcel from the improvements. The determination of whether or not a lot or parcel will benefit from the improvements shall be made pursuant to the Improvement Act of 1911 (Division 7 commencing with Section 5000) [of the Streets and Highways Code, State of California]. Section 22547 of the 1972 Act also permits the designation of zones of benefit within any individual assessment district if "by reasons or variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvement". Article XIII D, Section 4(a) of the California Constitution limits the amount of any assessment to the proportional special benefit conferred on the property. Article XIII D also provides that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment. Exempted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements and rights-of-ways, public greenbelts and public parkways. The net amount to be assessed may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels. Proposition 218, approved by the voters in November 1996, requires the City to separate general benefit from special benefit, where only special benefit is assessed. Page 522 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 4 – City of Rancho Cucamonga 11 Fiscal Year 2023/24 ATTACHMENT 13 Special Benefit The maintenance and servicing of the improvements within the District (which are described in the Description of Improvements and Services Section of this report) are for the benefit of the properties within the District, and as such confer a special and direct benefit to parcels within the District by: •improving the livability, safety, appearance, and desirability for properties within the boundaries of the District, and •ensuring that improvements do not reach a state of deterioration or disrepair so as to be materially detrimental to properties within the District, and •providing for safe vehicular and pedestrian access for properties within the District, and •providing beautification and overall enhancement to properties within the District. The above mentioned items affect the assessed property in a way that is particular and distinct from their effect on other parcels and that real property in general and the public at large do not share. They contribute to a specific enhancement of the properties within the District. Since these improvements were installed and are maintained specifically for the properties within the District; only properties within the District receive a special benefit and are assessed for said maintenance. General Benefit In addition to the special benefits received by parcels within the District, there are derivative general benefits that are conferred on parcels outside the boundaries of the District which include: •the safety and visual enhancement of the area to persons or vehicles that may travel through the District However, it has been determined that these benefits are derivative and do not provide a direct benefit to parcels outside of the district that are not being assessed. Method of Assessment Spread Each of the parcels within the District is deemed to receive special benefit from the improvements. Each parcel that has a special benefit conferred upon it as a result of the maintenance and operation of improvements are identified and the proportionate special benefit derived by each identified parcel is determined in relationship to the entire costs of the maintenance and operation of the improvements. When the District was formed, Article XIII D and Proposition 218 had not yet been passed. Upon the passage of Article XIII D and the subsequent passage of the Proposition Omnibus Implementation Act, new rules were put into place. Due to the changes in legal requirements, as Page 523 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 4 – City of Rancho Cucamonga 12 Fiscal Year 2023/24 ATTACHMENT 13 property annexed to the District after the passage of the Assessment Law, the description of the method of assessment became more refined; however, the assessment per parcel has remained the same since Fiscal Year 1996/97. Further, no parcel included in the District formation or annexations prior to when the language was refined, are now being levied differently than they were at the time the District was formed or the parcels were annexed. To assess special benefit appropriately, it is necessary to relate the different type of parcel improvements to each other. The EBU method of apportionment uses the single-family home as the basic unit of assessment. A single-family home equals one Equivalent Dwelling Unit (EBU). Every other land-use is converted to EBUs based on an assessment formula that equates to the property's specific development status, type of development (land-use), and size of the property, as compared to a single-family home. The following table provides the weighting factors applied to various land- use types, as assigned by County use code, to determine each parcel's EBU assignment. Land-Use Equivalent Dwelling Units Prope rty T ype (County Use Code)EBU Value Multiplie r Single Fam ily Res idential 1.00 Parc el Multi-Family Residential 0.50 Unit Non-Res idential 2.00 Ac re The use of the latest County Assessor's Secured Roll shall be the basis for the Property Type determination and units/acreage assignments, unless better data is available to the City. In addition, if any parcel within the District is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, the Property Type and EBU assignment shall be based on the correct parcel number and/or new parcel number(s) County use code and subsequent property information. If a single parcel has changed to multiple parcels, the EBU assignment and assessment amount applied to each of the new parcels will be recalculated rather than spread the proportionate share of the original assessment. The following table summarizes the Fiscal Year 2023/24 maximum allowable assessment rates for the District: Property T ype (County Use Code ) M aximum Allowable Assessme nt Rate pe r EBU Actual Ase ssme nt Rate per EBU T otal Units/Acre s T otal EBUs Single Family Residential $28.96 $28.96 2,652.00 2,652.00 Multi-Family Residential 28.96 28.96 5,250.00 2,625.00 Non-Res idential 28.96 28.96 234.39 468.78 Page 524 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 4 – City of Rancho Cucamonga 13 Fiscal Year 2023/24 ATTACHMENT 13 The total amount of maintenance and incidental costs for maintaining the street lights and traffic signals is assessed to the individual parcels of real property within the District in proportion to the special benefit received by such parcels of real property. The proposed individual assessments are shown on the assessment roll in this report. ASSESSMENT DIAGRAM An Assessment Diagram for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Assessor of the County San Bernardino, at the time this report was prepared, and are incorporated by reference herein and made part of this Engineer's Report. Page 525 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 4 – City of Rancho Cucamonga 14 Fiscal Year 2023/24 ATTACHMENT 13 Page 526 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 4 – City of Rancho Cucamonga 15 Fiscal Year 2023/24 ATTACHMENT 13 ASSESSMENT ROLL AND ANNEXATIONS Assessment Roll The assessment roll is a listing of the assessment for Fiscal Year 2023/24 apportioned to each lot or parcel, as shown on the last equalized roll of the Assessor of the County of San Bernardino. The following table summarizes the Fiscal Year 2023/24 actual assessments for the District: Prope rty T ype (County Use Code ) Actual Asse ssme nt Rate pe r EBU T otal Units/Acre s T otal EBUs T otal Asse ssment Single Family Residential $28.96 2,652.00 2,652.00 $76,801.92 Multi-Family Res idential 28.96 5,250.00 2,625.00 76,020.00 Non-Res idential 28.96 234.39 468.78 13,575.87 T otals 8,136.39 5,745.78 $166,397.79 A copy of the full assessment roll is available for review in the City Clerk's office. Annexations There are no effective annexations for Fiscal Year 2023/24. Page 527 of 715 ATTACHMENT 14 Annual Engineer’s Report Fiscal Year 2023/24 City of Rancho Cucamonga Street Lighting Maintenance District No. 5 (Caryn Planned Community) Page 528 of 715 CITY OF RANCHO CUCAMONGA STREET LIGHTING MAINTENANCE DISTRICT NO. 5 (CARYN PLANNED COMMUNITY) 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909.477.2700 Fax: 909.477.2845 CITY COUNCIL L. Dennis Michael, Mayor Lynne B. Kennedy, Mayor Pro Tem Ryan A. Hutchison, Council Member Kristine D. Scott, Council Member Ashley N. Stickler, Council Member CITY STAFF John R. Gillison, City Manager Elisa Cox, Assistant City Manager Jason C. Welday, Director of Engineering Services/City Engineer William Wittkopf, Public Works Director Noah Daniels, Finance Director Page 529 of 715 TABLE OF CONTENTS ENGINEER’S LETTER 1 INTRODUCTION 3 Reason for Assessment 3 Process for Annual Assessment 3 PLANS AND SPECIFICATIONS 4 Description of the Boundaries of the District 4 Description of Improvements and Services 4 Map of Improvements 5 ESTIMATE OF COSTS 7 District Budget 7 Definitions of Budget Items 9 METHOD OF ASSESSMENT 10 Overview 10 Special Benefit 11 General Benefit 11 Method of Assessment Spread 11 ASSESSMENT DIAGRAM 13 ASSESSMENT ROLL AND ANNEXATIONS 15 Assessment Roll 15 Annexations 15 Page 530 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 5 – City of Rancho Cucamonga 1 Fiscal Year 2023/24 ATTACHMENT 14 ENGINEER’S LETTER WHEREAS, on June 7, 2023, the City Council of Rancho Cucamonga (the “City”), under the Landscaping and Lighting Act of 1972 (the “1972 Act”) adopted its Resolution No. 2023-058, a Resolution Initiating Proceedings for the Levy of Annual Assessments for Street Light Maintenance District No. 5 (Caryn Planned Community) (the “District”); and WHEREAS, the Resolution Initiating Proceedings directed the City Engineer to prepare and file an Annual Engineer’s Report for Fiscal Year 2023/24 pursuant to the requirements of the 1972 Act. The Annual Engineer’s Report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the maintenance, operations and servicing of the improvements for the District for the referenced fiscal year, a diagram for the District, showing the area and properties proposed to be assessed, and an assessment of the estimated costs of the maintenance, operations and servicing of the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received; and NOW THEREFORE, the following assessment is proposed to be authorized in order to pay for the acquisition of street lights, the installation of Light Emitting Diode (LED) street lighting, and estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the boundaries of the District in proportion to the special benefit received. The following table summarizes the proposed assessment. Fisc al Year 2023/24 Budget Expe nditure s Operations and Maintenanc e 42,100 Trans fer Out 9,560 T otal Expe nditure s Budge t 51,660 Re v e nue s Taxes: Es timated Ass es sm ents , Net of Es tim ated Delinquenc ies 44,150 Anticipated Prior Year Delinquencies Collection 490 Subtotal - Taxes 44,640 Trans fer In - General Fund 19,940 T otal Re v e nue s Budge t 64,580 Contribution to/(Use of) Fund Balance 12,920$ Total Dis tric t EBU Count 1,276.00 Ac tual As s es s ment per EBU 34.60$ Maximum Allowable Ass es sm ent per EBU 34.60$ Page 531 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 5 – City of Rancho Cucamonga 2 Fiscal Year 2023/24 ATTACHMENT 14 In making the assessments contained herein pursuant to the 1972 Act: 1. I have identified all parcels which will have a special benefit conferred upon them from the improvement described in the Special Benefit Section of this Annual Engineer’s Report (the “Specially Benefited Parcels”). For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is included in this Annual Engineer’s Report. 2. I have evaluated the costs and expenses of the improvements upon the Specially Benefitted Parcels. In making such evaluation: a. The proportionate special benefit derived by each Specially Benefited Parcel from the improvements was determined in relationship to the entirety of the maintenance costs of the improvements; b. No assessment has been imposed on any Specially Benefited Parcel which exceeds the reasonable cost of the proportional special benefit conferred on such parcel from the improvements; and c. Any general benefits from the improvements have been separated from the special benefits and only special benefits have been assessed. I, the undersigned, respectfully submit the enclosed Annual Engineer’s Report and, to the best of my knowledge, information and belief, I certify that the Annual Engineer’s Report, and Assessment Diagram included herein have been prepared and computed in accordance with the order of the City Council of the City of Rancho Cucamonga and the Assessment Law. Jason C. Welday Director of Engineering Services/City Engineer Page 532 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 5 – City of Rancho Cucamonga 3 Fiscal Year 2023/24 ATTACHMENT 14 INTRODUCTION Reason for Assessment Approval of the assessment covered by this Engineer’s Report will generate the revenue necessary to: Provide for the maintenance and servicing of the improvements described in this Engineer’s Report. Maintenance may include but is not limited to, all of the following: the upkeep, repair, removal or replacement of all or any part of any improvement. Servicing means the furnishing of electricity, gas or other illuminating energy for the lighting or appurtenant facilities. This shall also include material, vehicle, equipment, capital improvements, the installation of LED street lighting, and administrative costs associated with the annual administration and operation of the District. Process for Annual Assessment The City cannot levy and collect annual assessments within the District without complying with the procedures specified in the 1972 Act. On an annual basis, an Engineer’s Report must be prepared which contains a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. The City Council must also adopt a resolution of intention which: •Declares the intention of the City Council to levy and collect assessments within the District for the fiscal year stated therein. •Generally describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements. •Refers to the District by its distinctive designation and indicate the general location of the District. •Refers to the Engineer’s Report, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. •Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment. •States whether the assessment is proposed to increase from the previous year. If the assessments are to be levied in the same or lesser amounts than the maximum assessment amount approved, the City Clerk shall give notice by causing the resolution of intention to be published. Any interested person may, prior to the conclusion of the public hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. Page 533 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 5 – City of Rancho Cucamonga 4 Fiscal Year 2023/24 ATTACHMENT 14 During the course or upon conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including the improvements, to the zones within the District, and the proposed diagram or the proposed assessment. The City Council, upon conclusion of the public hearing must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the assessment. If the assessment to be levied exceeds the maximum assessment amount previously approved, the City must comply with the procedures specified in Article XIII D and Proposition 218. The voters in the State of California in November 1996 added Article XIII D to the California Constitution imposing, among other requirements, the necessity for the City to conduct an assessment ballot procedure to enable the owners of each property on which assessments are proposed to be enacted or increased, the opportunity to express their support for, or opposition to, the proposed assessment or increase in such assessment. PLANS AND SPECIFICATIONS The District provides for the administration, maintenance, operations, and servicing of various improvements located within the public right-of-way and dedicated easements within the boundaries of the District. Description of the Boundaries of the District The District is located in the City of Rancho Cucamonga. The boundaries of the District are generally described as that area located north of the 210 Freeway, south of Banyan St, west of Rochester Ave and east of Milliken Ave, also known as the Caryn Planned Community. The boundaries also include Tract No. 13835 east of Rochester Ave and Tracts No. 13748, 13857 and 13858 west of Milliken Ave. Reference is also made to the Assessment Diagram included in this Report. Description of Improvements and Services The improvements are the maintenance and servicing of street lights, traffic signals and appurtenant facilities throughout the District. The maintenance and servicing includes, but is not limited to, furnishing electric current for public lighting facilities including street lights and traffic signals, and associated appurtenant facilities. Services include personnel, materials, contracting services, utilities, and all necessary costs associated with the maintenance, replacement and repair required to keep the improvements in operational and satisfactory condition. In addition, it is the City's intention to continue to use cost effective materials, in order to lower expenses of the District. In Fiscal Year 2017/18, the acquisition by the City of the street lights and installation of LED street lighting specially benefiting the properties within the District has been added to the improvements. Page 534 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 5 – City of Rancho Cucamonga 5 Fiscal Year 2023/24 ATTACHMENT 14 Map of Improvements The following page shows the map of street light and traffic signal improvements to be maintained using District funds. Page 535 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 5 – City of Rancho Cucamonga 6 Fiscal Year 2023/24 ATTACHMENT 14 Page 536 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 5 – City of Rancho Cucamonga 7 Fiscal Year 2023/24 ATTACHMENT 14 ESTIMATE OF COSTS The estimated costs of administration, maintenance, operations, and servicing the improvements as described in the Plans and Specifications are summarized below. Each year, as part of the District levy calculation process, the costs and expenses are reviewed and the annual costs are projected for the following fiscal year. District Budget Fis c al Year 2023/24 Budget Expe nditure s Ope rations and M ainte nance : Contrac t Servic es 1,770 Utilities : Electric Utilities 32,560 As s ess ment Adm inis tration 4,570 Admin./General Overhead 3,200 Subtotal - Ope rations and Mainte nance 42,100 T ransfe r Out - Ge ne ral Stre e t Lights Fund 9,560 T otal Expe nditure s Budge t 51,660$ Fis c al Year 2023/24 Budget Re v e nue s T axe s: Es timated As s ess m ents , Net of Estim ated Delinquenc ies 44,150$ Antic ipated Prior Year Delinquencies Collec tion 490 Subtotal - T axe s 44,640 T ransfe r In Transfer In - General Fund 19,940 T otal Re v e nue s Budge t 64,580 Contribution to/(Use of) Fund Balance 12,920$ Total Gros s Estim ated Ass es s m ents 44,149.60$ Total Distric t EBU Count 1,276.00 Ac tual Asses s m ent per EBU - Fisc al Year 2023/24 34.60$ Maxim um Allowable Ass es sm ent per EBU - Fis c al Year 2023/24 34.60$ Page 537 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 5 – City of Rancho Cucamonga 8 Fiscal Year 2023/24 ATTACHMENT 14 The maximum allowable assessment per Equivalent Benefit Unit (EBU) listed in the District budget above, is the amount which was approved in Fiscal Year 1996/97 and subsequent District annexations. Each year, prior to the assessments being placed on the tax roll, the City will review the budget and determine the amount needed to maintain the improvements for the upcoming fiscal year. The actual assessment per EBU will be based on the total amount of funds needed to maintain the improvements in a satisfactory and healthy condition. The actual assessment amount may be lower than the maximum allowable assessment; however, it may not exceed the maximum unless the increase is approved by the property owners in accordance with Proposition 218. It is the intent of the City to maintain an Operating Reserve which shall not exceed the estimated costs of maintenance and servicing of the improvements prior to December 10 of the fiscal year, or when the City expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. The reserve balance information for the District is as follows: Operating Res erve Es tim ated Reserve Fund Balanc e, June 30, 2023 (94,631)$ Contribution to/(Us e of) Reserve - Fisc al Year 2023/24 12,920 Es tim ated Reserve Fund Balanc e, June 30, 2024 (81,711)$ Page 538 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 5 – City of Rancho Cucamonga 9 Fiscal Year 2023/24 ATTACHMENT 14 Definitions of Budget Items The following definitions describe the costs and expenses included in the District Budget: Personnel Services: This item includes the costs attributed to the salaries of all full-time and part-time employees dedicated to maintenance of the District improvements. Additionally, this includes benefits available to City employees. Operations and Maintenance: This item includes the costs of City staff to perform maintenance duties within the boundaries of the District. Utilities: This item includes the costs to furnish electricity and telephone services, as required, for the operation and maintenance of the street lights, traffic signals, and appurtenant facilities throughout the District. Assessment Administration: This item includes the cost to all particular departments and staff of the City, and consultants for providing the administration, coordination and management of District services, operations, and incidental expenses related to the District. This item also includes creation of an annual Engineer's Report, resolutions and placing the assessment amounts onto the County tax roll each year, along with responding to any public inquiries and future Proposition 218 balloting proceedings. General Overhead: This item includes the costs of all central services departments of the City for providing the coordination of District services, inspections, annual bid management, responding to public concerns, public education, accounting, auditing and procedural matters associated with the District. This item also includes an allocation for general City staff time for administrative functions and systems that provide for a functional and operational District within the City's administrative structure. Capital Outlay: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include installation of safety lights and other large improvements. Debt Service: This item includes the repayment of interest and principal to the City Capital Reserve Fund for the acquisition of street lights and installation of LED street lighting within the District. In Fiscal Year 2023/24, the debt service has been suspended due to the structural operating deficit and will be routinely monitored. Transfer Out - General City Street Lights Fund: This item includes the cost for the replacement and installation of District owned street lights. These costs are incurred in the General City Street Lights Fund and reimbursed by the District. Page 539 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 5 – City of Rancho Cucamonga 10 Fiscal Year 2023/24 ATTACHMENT 14 Other Revenues: This includes other revenues that are not levied through the annual assessments that support the District operations. These other revenues may include: interest earnings and Developer Energizing Fees. METHOD OF ASSESSMENT Overview Pursuant to the 1972 Act and Article XIII D, all parcels that have a special benefit conferred upon them as a result of the maintenance and operation of improvements and services shall be identified, and the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entire costs of the maintenance and operation of improvements. The 1972 Act, permits the establishment of assessment districts for the purpose of providing certain public improvements which include the public lighting facilities, including traffic signals. Section 22573 of the 1972 Act requires that maintenance assessments must be levied according to benefit rather than according to assessed value. This Section states: The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefit to be received by each such lot or parcel from the improvements. The determination of whether or not a lot or parcel will benefit from the improvements shall be made pursuant to the Improvement Act of 1911 (Division 7 commencing with Section 5000) [of the Streets and Highways Code, State of California]. Section 22547 of the 1972 Act also permits the designation of zones of benefit within any individual assessment district if "by reasons or variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvement". Article XIII D, Section 4(a) of the California Constitution limits the amount of any assessment to the proportional special benefit conferred on the property. Article XIII D also provides that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment. Exempted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements and rights-of-ways, public greenbelts and public parkways. The net amount to be assessed may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels. Proposition 218, approved by Page 540 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 5 – City of Rancho Cucamonga 11 Fiscal Year 2023/24 ATTACHMENT 14 the voters in November 1996, requires the City to separate general benefit from special benefit, where only special benefit is assessed. Special Benefit The maintenance and servicing of the improvements within the District (which are described in the Description of Improvements and Services Section of this report) are for the benefit of the properties within the District, and as such confer a special and direct benefit to parcels within the District by: •improving the livability, safety, appearance, and desirability for properties within the boundaries of the District, and •ensuring that improvements do not reach a state of deterioration or disrepair so as to be materially detrimental to properties within the District, and •providing for safe vehicular and pedestrian access for properties within the District, and •providing beautification and overall enhancement to properties within the District. The above mentioned items affect the assessed property in a way that is particular and distinct from their effect on other parcels and that real property in general and the public at large do not share. They contribute to a specific enhancement of the properties within the District. Since these improvements were installed and are maintained specifically for the properties within the District; only properties within the District receive a special benefit and are assessed for said maintenance. General Benefit In addition to the special benefits received by parcels within the District, there are derivative general benefits that are conferred on parcels outside the boundaries of the District which include: •the safety and visual enhancement of the area to persons or vehicles that may travel through the District However, it has been determined that these benefits are derivative and do not provide a direct benefit to parcels outside of the district that are not being assessed. Method of Assessment Spread Each of the parcels within the District is deemed to receive special benefit from the improvements. Each parcel that has a special benefit conferred upon it as a result of the maintenance and operation of improvements are identified and the proportionate special benefit Page 541 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 5 – City of Rancho Cucamonga 12 Fiscal Year 2023/24 ATTACHMENT 14 derived by each identified parcel is determined in relationship to the entire costs of the maintenance and operation of the improvements. When the District was formed, Article XIII D and Proposition 218 had not yet been passed. Upon the passage of Article XIII D and the subsequent passage of the Proposition Omnibus Implementation Act, new rules were put into place. Due to the changes in legal requirements, as property annexed to the District after the passage of the Assessment Law, the description of the method of assessment became more refined, however, the assessment per parcel has remained the same since Fiscal Year 1996/97. Further, no parcel included in the District formation or annexations prior to when the language was refined, are now being levied differently than they were at the time the District was formed or the parcels were annexed. To assess special benefit appropriately, it is necessary to relate the different type of parcel improvements to each other. The EBU method of apportionment uses the single-family home as the basic unit of assessment. A single-family home equals one EBU. The following table provides the weighting factors applied by land-use types, as assigned by County use code, to determine each parcel's EBU assignment. Land-Use Equivalent Dwelling Units Prope rty T ype (County Use Code )EBU Value Multiplie r Single Family Res idential 1.00 Parcel The use of the latest County Assessor's Secured Roll shall be the basis for the Property Type determination and units/acreage assignments, unless better data is available to the City. In addition, if any parcel within the District is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, the Property Type and EBU assignment shall be based on the correct parcel number and/or new parcel number(s) County use code and subsequent property information. If a single parcel has changed to multiple parcels, the EBU assignment and assessment amount applied to each of the new parcels will be recalculated rather than spread the proportionate share of the original assessment. The following table summarizes the Fiscal Year 2023/24 maximum allowable assessment rates for the District: Property T ype (County Use Code ) M aximum Allowable Assessme nt Rate pe r EBU Actual Ase ssment Rate per EBU T otal Units/Acre s T otal EBUs Single Family Residential $34.60 $34.60 1,276.00 1,276.00 Page 542 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 5 – City of Rancho Cucamonga 13 Fiscal Year 2023/24 ATTACHMENT 14 The total amount of maintenance and incidental costs for maintaining the street lights and traffic signals is assessed to the individual parcels of real property within the District in proportion to the special benefit received by such parcels of real property. The proposed individual assessments are shown on the assessment roll in this report. ASSESSMENT DIAGRAM An Assessment Diagram for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Assessor of the County San Bernardino, at the time this report was prepared, and are incorporated by reference herein and made part of this Engineer's Report. Page 543 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 5 – City of Rancho Cucamonga 14 Fiscal Year 2023/24 ATTACHMENT 14 Page 544 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 5 – City of Rancho Cucamonga 15 Fiscal Year 2023/24 ATTACHMENT 14 ASSESSMENT ROLL AND ANNEXATIONS Assessment Roll The assessment roll is a listing of the assessment for Fiscal Year 2023/24 apportioned to each lot or parcel, as shown on the last equalized roll of the Assessor of the County of San Bernardino. The following table summarizes the Fiscal Year 2023/24 actual assessment for the District: Property T ype (County Use Code ) Actual Asse ssment Rate pe r EBU T otal Units/Acre s T otal EBUs T otal Asse ssme nt Single Family Residential $34.60 1,276.00 1,276.00 $44,149.60 T otals 1,276.00 1,276.00 $44,149.60 A copy of the full assessment roll is available for review in the City Clerk's office. Annexations There are no effective annexations for Fiscal Year 2023/24. Page 545 of 715 ATTACHMENT 15 Annual Engineer’s Report Fiscal Year 2023/24 City of Rancho Cucamonga Street Lighting Maintenance District No. 6 (Commercial Industrial) Page 546 of 715 CITY OF RANCHO CUCAMONGA STREET LIGHTING MAINTENANCE DISTRICT NO. 6 (COMMERCIAL INDUSTRIAL) 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909.477.2700 Fax: 909.477.2845 CITY COUNCIL L. Dennis Michael, Mayor Lynne B. Kennedy, Mayor Pro Tem Ryan A. Hutchison, Council Member Kristine D. Scott, Council Member Ashley N. Stickler, Council Member CITY STAFF John R. Gillison, City Manager Elisa Cox, Assistant City Manager Jason C. Welday, Director of Engineering Services/City Engineer William Wittkopf, Public Works Director Noah Daniels, Finance Director Page 547 of 715 TABLE OF CONTENTS ENGINEER’S LETTER 1 INTRODUCTION 3 Reason for Assessment 3 Process for Annual Assessment 3 PLANS AND SPECIFICATIONS 4 Description of the Boundaries of the District 4 Description of Improvements and Services 4 Map of Improvements 5 ESTIMATE OF COSTS 7 District Budget 7 Definitions of Budget Items 9 METHOD OF ASSESSMENT 10 Overview 10 Special Benefit 11 General Benefit 11 Method of Assessment Spread 11 ASSESSMENT DIAGRAM 13 ASSESSMENT ROLL AND ANNEXATIONS 15 Assessment Roll 15 Annexations 15 Page 548 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 6 – City of Rancho Cucamonga 1 Fiscal Year 2023/24 ATTACHMENT 15 ENGINEER’S LETTER WHEREAS, on June 7, 2023, the City Council of Rancho Cucamonga (the “City”), under the Landscaping and Lighting Act of 1972 (the “1972 Act”) adopted its Resolution No. 2023-058, a Resolution Initiating Proceedings for the Levy of Annual Assessments for Street Light Maintenance District No. 6 (Commercial Industrial) (the “District”); and WHEREAS, the Resolution Initiating Proceedings directed the City Engineer to prepare and file an Annual Engineer’s Report for Fiscal Year 2023/24 pursuant to the requirements of the 1972 Act. The Annual Engineer’s Report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the maintenance, operations and servicing of the improvements for the District for the referenced fiscal year, a diagram for the District, showing the area and properties proposed to be assessed, and an assessment of the estimated costs of the maintenance, operations and servicing of the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received; and NOW THEREFORE, the following assessment is proposed to be authorized in order to pay for the acquisition of street lights, the installation of Light Emitting Diode (LED) street lighting, and estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the boundaries of the District in proportion to the special benefit received. The following table summarizes the proposed assessment. Fisc al Year 2023/24 Budget Expe nditure s Operations and Maintenanc e 71,830$ Trans fer Out 14,980 T otal Expe nditure s Budge t 86,810 Re v e nue s Taxes: Es timated Ass es sm ents , Net of Es tim ated Delinquenc ies 132,360 Anticipated Prior Year Delinquencies Collection 1,610 Subtotal - Taxes 133,970 Other Revenues 1,170 Trans fer In - CFD Street Lighting Servic es 6,610 T otal Re v e nue s Budge t 141,750 Contribution to/(Use of) Fund Balance 54,940$ Total Dis tric t EBU Count 2,574.91 Ac tual As s es s ment per EBU 51.40$ Maximum Allowable Ass essm ent per EBU 51.40$ Page 549 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 6 – City of Rancho Cucamonga 2 Fiscal Year 2023/24 ATTACHMENT 15 In making the assessments contained herein pursuant to the 1972 Act: 1. I have identified all parcels which will have a special benefit conferred upon them from the improvement described in the Special Benefit Section of this Annual Engineer’s Report (the “Specially Benefited Parcels”). For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is included in this Annual Engineer’s Report. 2. I have evaluated the costs and expenses of the improvements upon the Specially Benefited Parcels. In making such evaluation: a. The proportionate special benefit derived by each Specially Benefited Parcel from the improvements was determined in relationship to the entirety of the maintenance costs of the improvements; b. No assessment has been imposed on any Specially Benefited Parcel which exceeds the reasonable cost of the proportional special benefit conferred on such parcel from the improvements; and c. Any general benefits from the improvements have been separated from the special benefits and only special benefits have been assessed. I, the undersigned, respectfully submit the enclosed Annual Engineer’s Report and, to the best of my knowledge, information and belief, I certify that the Annual Engineer’s Report and Assessment Diagram included herein have been prepared and computed in accordance with the order of the City Council of the City of Rancho Cucamonga and the Assessment Law. Jason C. Welday Director of Engineering Services/City Engineer Page 550 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 6 – City of Rancho Cucamonga 3 Fiscal Year 2023/24 ATTACHMENT 15 INTRODUCTION Reason for Assessment Approval of the assessment covered by this Engineer’s Report will generate the revenue necessary to: Provide for the maintenance and servicing of the improvements described in this Engineer’s Report. Maintenance may include but is not limited to, all of the following: the upkeep, repair, removal or replacement of all or any part of any improvement. Servicing means the furnishing of electricity, gas or other illuminating energy for the lighting or appurtenant facilities. This shall also include material, vehicle, equipment, capital improvements, the installation of LED street lighting, and administrative costs associated with the annual administration and operation of the District. Process for Annual Assessment The City cannot levy and collect annual assessments within the District without complying with the procedures specified in the 1972 Act. On an annual basis, an Engineer’s Report must be prepared which contains a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. The City Council must also adopt a resolution of intention which: •Declares the intention of the City Council to levy and collect assessments within the District for the fiscal year stated therein. •Generally describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements. •Refers to the District by its distinctive designation and indicate the general location of the District. •Refers to the Engineer’s Report, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. •Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment. •States whether the assessment is proposed to increase from the previous year. If the assessments are to be levied in the same or lesser amounts than the maximum assessment amount approved, the City Clerk shall give notice by causing the resolution of intention to be published. Any interested person may, prior to the conclusion of the public hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. Page 551 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 6 – City of Rancho Cucamonga 4 Fiscal Year 2023/24 ATTACHMENT 15 During the course or upon conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including the improvements, to the zones within the District, and the proposed diagram or the proposed assessment. The City Council, upon conclusion of the public hearing must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the assessment. If the assessment to be levied exceeds the maximum assessment amount previously approved, the City must comply with the procedures specified in Article XIII D and Proposition 218. The voters in the State of California in November 1996 added Article XIII D to the California Constitution imposing, among other requirements, the necessity for the City to conduct an assessment ballot procedure to enable the owners of each property on which assessments are proposed to be enacted or increased, the opportunity to, express their support for, or opposition to the proposed assessment or increase in such assessment. PLANS AND SPECIFICATIONS The District provides for the administration, maintenance, operations, and servicing of various improvements located within the public right-of-way and dedicated easements within the boundaries of the District. Description of the Boundaries of the District The District is located in the City of Rancho Cucamonga, State of California. The boundaries of the District are generally described as the commercial and industrial area of the City which is generally bounded by Foothill Blvd on the north, 4th St on the south, East Ave on the east and Grove Ave on the west. Reference is also made to the Assessment Diagram included in this Report. Description of Improvements and Services The improvements are the maintenance and servicing of street lights, traffic signals and appurtenant facilities throughout the District. The maintenance and servicing includes, but is not limited to, furnishing electric current for public lighting facilities including street lights and traffic signals, and associated appurtenant facilities. Services include personnel, materials, contracting services, utilities, and all necessary costs associated with the maintenance, replacement and repair required to keep the improvements in operational and satisfactory condition. In addition, it is the City's intention to continue to use cost effective materials, in order to lower expenses of the District. In Fiscal Year 2017/18, the acquisition by the City of the street lights and installation of LED street lighting specially benefiting the properties within the District has been added to the improvements. Page 552 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 6 – City of Rancho Cucamonga 5 Fiscal Year 2023/24 ATTACHMENT 15 Map of Improvements The following page shows the map of street light and traffic signal improvements to be maintained using District funds. Page 553 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 6 – City of Rancho Cucamonga 6 Fiscal Year 2023/24 ATTACHMENT 15 Page 554 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 6 – City of Rancho Cucamonga 7 Fiscal Year 2023/24 ATTACHMENT 15 ESTIMATE OF COSTS The estimated costs of administration, maintenance, operations, and servicing the improvements as described in the Plans and Specifications are summarized below. Each year, as part of the District levy calculation process, the costs and expenses are reviewed and the annual costs are projected for the following fiscal year. District Budget Fis c al Year 2023/24 Budget Expe nditure s Ope rations and M ainte nance : Operations and Maintenanc e: Contrac t Servic es 2,780$ Utilities : Electric Utilities 55,560 As s essm ent Adminis tration 4,030 Adm in./General Overhead 9,460 Subtotal - Ope rations and Mainte nance 71,830 T ransfe r Out - Ge ne ral Stre e t Lights Fund 14,980 T otal Expe nditure s Budge t 86,810$ Page 555 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 6 – City of Rancho Cucamonga 8 Fiscal Year 2023/24 ATTACHMENT 15 Fisc al Year 2023/24 Budget Re v e nue s T axe s: Estim ated As ses sments , Net of Es tim ated Delinquencies 132,360$ Anticipated Prior Year Delinquenc ies Collec tion 1,610 Subtotal - T axe s 133,970 Othe r Re v e nue s: Interes t Earnings 1,170 T ransfe r In: Transfer In - CFD Street Lighting Services 6,610 T otal Re v e nue s Budge t 141,750 Contribution to/(Use of) Fund Balance 54,940$ Total Gross Estimated As ses sments 132,350.26$ Total District EBU Count 2,574.91 Ac tual Ass ess m ent per EBU - Fis cal Year 2023/24 51.40$ Maximum Allowable Ass es s m ent per EBU - Fisc al Year 2023/24 51.40$ The maximum allowable assessment per Equivalent Benefit Unit (EBU) listed in the District budget above, is the amount which was approved in Fiscal Year 1996/97 and subsequent District annexations. Each year, prior to the assessments being placed on the tax roll, the City will review the budget and determine the amount needed to maintain the improvements for the upcoming fiscal year. The actual assessment per EBU will be based on the total amount of funds needed to maintain the improvements in a satisfactory and healthy condition. The actual assessment amount may be lower than the maximum allowable assessment; however, it may not exceed the maximum unless the increase is approved by the property owners in accordance with Proposition 218. It is the intent of the City to maintain an Operating Reserve which shall not exceed the estimated costs of maintenance and servicing of the improvements prior to December 10 of the fiscal year, or when the City expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. The reserve balance information for the District is as follows: O perating Operating Res erve Es timated Res erve Fund Balance, June 30, 2023 89,199$ Contribution to/(Use of) Reserve - Fiscal Year 2023/24 54,940 Es timated Res erve Fund Balance, June 30, 2024 144,139$ Page 556 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 6 – City of Rancho Cucamonga 9 Fiscal Year 2023/24 ATTACHMENT 15 Definitions of Budget Items The following definitions describe the costs and expenses included in the District Budget: Personnel Services: This item includes the costs attributed to the salaries of all full-time and part-time employees dedicated to maintenance of the District improvements. Additionally, this includes benefits available to City employees. Operations and Maintenance: This item includes the costs of City staff to perform maintenance duties within the boundaries of the District. Utilities: This item includes the costs to furnish electricity and telephone services, as required, for the operation and maintenance of the street lights, traffic signals, and appurtenant facilities throughout the District. Assessment Administration: This item includes the cost to all particular departments and staff of the City, and consultants for providing the administration, coordination and management of District services, operations, and incidental expenses related to the District. This item also includes creation of an annual Engineer's Report, resolutions and placing the assessment amounts onto the County tax roll each year, along with responding to any public inquiries and future Proposition 218 balloting proceedings. General Overhead: This item includes the costs of all central services departments of the City for providing the coordination of District services, inspections, annual bid management, responding to public concerns, public education, accounting, auditing and procedural matters associated with the District. This item also includes an allocation for general City staff time for administrative functions and systems that provide for a functional and operational District within the City's administrative structure. Capital Outlay: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include installation of safety lights and other large improvements. Debt Service: This item includes the repayment of interest and principal to the City General Fund for the acquisition of street lights and installation of LED street lighting within the District. In FY 2021/22, the outstanding balance of the interfund was fully repaid. Transfer Out - General City Street Lights Fund: This item includes the cost for the replacement and installation of District owned street lights. These costs are incurred in the General City Street Lights Fund and reimbursed by the District. Other Revenues: This includes other revenues that are not levied through the annual assessments that support the District operations. These other revenues may include: interest earnings and Developer Energizing Fees. Page 557 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 6 – City of Rancho Cucamonga 10 Fiscal Year 2023/24 ATTACHMENT 15 METHOD OF ASSESSMENT Overview Pursuant to the 1972 Act and Article XIII D, all parcels that have a special benefit conferred upon them as a result of the maintenance and operation of improvements and services shall be identified, and the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entire costs of the maintenance and operation of improvements. The 1972 Act, permits the establishment of assessment districts for the purpose of providing certain public improvements which include the public lighting facilities, including traffic signals. Section 22573 of the 1972 Act requires that maintenance assessments must be levied according to benefit rather than according to assessed value. This Section states: The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefit to be received by each such lot or parcel from the improvements. The determination of whether or not a lot or parcel will benefit from the improvements shall be made pursuant to the Improvement Act of 1911 (Division 7 commencing with Section 5000) [of the Streets and Highways Code, State of California]. Section 22547 of the 1972 Act also permits the designation of zones of benefit within any individual assessment district if "by reasons or variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvement". Article XIII D, Section 4(a) of the California Constitution limits the amount of any assessment to the proportional special benefit conferred on the property. Article XIII D also provides that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment. Exempted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements and rights-of-ways, public greenbelts and public parkways. The net amount to be assessed may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels. Proposition 218, approved by the voters in November 1996, requires the City to separate general benefit from special benefit, where only special benefit is assessed. Page 558 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 6 – City of Rancho Cucamonga 11 Fiscal Year 2023/24 ATTACHMENT 15 Special Benefit The maintenance and servicing of the improvements within the District (which are described in the Description of Improvements and Services Section of this report) are for the benefit of the properties within the District, and as such confer a special and direct benefit to parcels within the District by: •improving the livability, safety, appearance, and desirability for properties within the boundaries of the District, and •ensuring that improvements do not reach a state of deterioration or disrepair so as to be materially detrimental to properties within the District, and •providing for safe vehicular and pedestrian access for properties within the District, and •providing beautification and overall enhancement to properties within the District. The above mentioned items affect the assessed property in a way that is particular and distinct from their effect on other parcels and that real property in general and the public at large do not share. They contribute to a specific enhancement of the properties within the District. Since these improvements were installed and are maintained specifically for the properties within the District; only properties within the District receive a special benefit and are assessed for said maintenance. General Benefit In addition to the special benefits received by parcels within the District, there are derivative general benefits that are conferred on parcels outside the boundaries of the District which include: •the safety and visual enhancement of the area to persons or vehicles that may travel through the District However, it has been determined that these benefits are derivative and do not provide a direct benefit to parcels outside of the district that are not being assessed. Method of Assessment Spread Each of the parcels within the District is deemed to receive special benefit from the improvements. Each parcel that has a special benefit conferred upon it as a result of the maintenance and operation of improvements are identified and the proportionate special benefit derived by each identified parcel is determined in relationship to the entire costs of the maintenance and operation of the improvements. When the District was formed, Article XIII D and Proposition 218 had not yet been passed. Upon the passage of Article XIII D and the subsequent passage of the Proposition Omnibus Implementation Act, new rules were put into place. Due to the changes in legal requirements, as Page 559 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 6 – City of Rancho Cucamonga 12 Fiscal Year 2023/24 ATTACHMENT 15 property annexed to the District after the passage of the Assessment Law, the description of the method of assessment became more refined, however, the assessment per parcel has remained the same since Fiscal Year 1996/97. Further, no parcel included in the District formation or annexations prior to when the language was refined, are now being levied differently than they were at the time the District was formed or the parcels were annexed. To assess special benefit appropriately, it is necessary to relate the different type of parcel improvements to each other. The EBU method of apportionment uses the single-family home as the basic unit of assessment. A single-family home equals one EBU. Every other land-use is converted to EBUs based on an assessment formula that equates to the property's specific development status, type of development (land-use), and size of the property, as compared to a single-family home. The following table provides the weighting factors applied to various land-use types, as assigned by County use code, to determine each parcel's EBU assignment. Land-Use Equivalent Dwelling Units Prope rty T ype (County Use Code )EBU Value Multiplie r Non-Residential 1.00 Ac re The use of the latest County Assessor's Secured Roll shall be the basis for the Property Type determination and units/acreage assignments, unless better data is available to the City. In addition, if any parcel within the District is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, the Property Type and EBU assignment shall be based on the correct parcel number and/or new parcel number(s) County use code and subsequent property information. If a single parcel has changed to multiple parcels, the EBU assignment and assessment amount applied to each of the new parcels will be recalculated rather than spread the proportionate share of the original assessment. The following table summarizes the Fiscal Year 2023/24 maximum allowable assessment rate for the District: Property T ype (County Use Code ) Actual Asse ssment Rate pe r EBU T otal Units/Acre s T otal EBUs T otal Asse ssme nt Non-Res idential $51.40 2,574.91 2,574.91 $132,350.26 T otals 2,574.91 2,574.91 $132,350.26 The total amount of maintenance and incidental costs for maintaining the streetlights and traffic signals is assessed to the individual parcels of real property within the District in proportion to the special benefit received by such parcels of real property. The proposed individual assessments are shown on the assessment roll in this report. Page 560 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 6 – City of Rancho Cucamonga 13 Fiscal Year 2023/24 ATTACHMENT 15 ASSESSMENT DIAGRAM An Assessment Diagram for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Assessor of the County San Bernardino, at the time this report was prepared, and are incorporated by reference herein and made part of this Engineer's Report. Page 561 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 6 – City of Rancho Cucamonga 14 Fiscal Year 2023/24 ATTACHMENT 15 Page 562 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 6 – City of Rancho Cucamonga 15 Fiscal Year 2023/24 ATTACHMENT 15 ASSESSMENT ROLL AND ANNEXATIONS Assessment Roll The assessment roll is a listing of the assessment for Fiscal Year 2023/24 apportioned to each lot or parcel, as shown on the last equalized roll of the Assessor of the County of San Bernardino. The following table summarizes the Fiscal Year 2023/24 actual assessment for the District: Property T ype (County Use Code ) Actual Asse ssment Rate pe r EBU T otal Units/Acre s T otal EBUs T otal Asse ssme nt Non-Residential $51.40 2,574.91 2,574.91 $132,350.26 T otals 2,574.91 2,574.91 $132,350.26 A copy of the full assessment roll is available for review in the City Clerk's office. Annexations The following annexations are effective for Fiscal Year 2023/24. Apn Anne xation Date Project Name T otal Units/ Acre s T otal EBUs Property T ype 0209-032-35 05/04/22 SUBTPM20164 2.32 2.32 Com mercial/Industrial 0229-171-28 11/16/22 DRC2018-00946 1.55 1.55 Com mercial/Industrial 0229-032-57 12/07/22 DRC2018-00594 0.79 0.79 Com mercial/Industrial 0229-171-02 12/07/22 DRC2019-05590 4.76 4.76 Com mercial/Industrial Page 563 of 715 ATTACHMENT 16 Annual Engineer’s Report Fiscal Year 2023/24 City of Rancho Cucamonga Street Lighting Maintenance District No. 7 (North Etiwanda) Page 564 of 715 CITY OF RANCHO CUCAMONGA STREET LIGHTING MAINTENANCE DISTRICT NO. 7 (NORTH ETIWANDA) 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909.477.2700 Fax: 909.477.2845 CITY COUNCIL L. Dennis Michael, Mayor Lynne B. Kennedy, Mayor Pro Tem Ryan A. Hutchison, Council Member Kristine D. Scott, Council Member Ashley N. Stickler, Council Member CITY STAFF John R. Gillison, City Manager Elisa Cox, Assistant City Manager Jason C. Welday, Director of Engineering Services/City Engineer William Wittkopf, Public Works Director Noah Daniels, Finance Director Page 565 of 715 TABLE OF CONTENTS ENGINEER’S LETTER 1 INTRODUCTION 3 Reason for Assessment 3 Process for Annual Assessment 3 PLANS AND SPECIFICATIONS 4 Description of the Boundaries of the District 4 Description of Improvements and Services 4 Map of Improvements 5 ESTIMATE OF COSTS 7 District Budget 7 Definitions of Budget Items 9 METHOD OF ASSESSMENT 10 Overview 10 Special Benefit 11 General Benefit 11 Method of Assessment Spread 11 ASSESSMENT DIAGRAM 13 ASSESSMENT ROLL AND ANNEXATIONS 15 Assessment Roll 15 Annexations 15 Page 566 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 7 – City of Rancho Cucamonga 1 Fiscal Year 2023/24 ATTACHMENT 16 ENGINEER’S LETTER WHEREAS, on June 7, 2023, the City Council of Rancho Cucamonga (the “City”), under the Landscaping and Lighting Act of 1972 (the “1972 Act”) adopted its Resolution No. 2023-058, a Resolution Initiating Proceedings for the Levy of Annual Assessments for Street Light Maintenance District No. 7 (North Etiwanda) (the “District”); and WHEREAS, the Resolution Initiating Proceedings directed the City Engineer to prepare and file an Annual Engineer’s Report for Fiscal Year 2023/24 pursuant to the requirements of the 1972 Act. The Annual Engineer’s Report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the maintenance, operations and servicing of the improvements for the District for the referenced fiscal year, a diagram for the District, showing the area and properties proposed to be assessed, and an assessment of the estimated costs of the maintenance, operations and servicing of the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received; and NOW THEREFORE, the following assessment is proposed to be authorized in order to pay for the acquisition of street lights, the installation of Light Emitting Diode (LED) street lighting, and estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the boundaries of the District in proportion to the special benefit received. The following table summarizes the proposed assessment. Fiscal Year 2023/24 Budget Expe nditure s Operations and Maintenanc e 126,890 Transfer Out 30,310 T otal Expe nditure s Budge t 157,200 Re v e nue s Taxes : Es tim ated As s essm ents , Net of Estimated Delinquenc ies 130,820 Antic ipated Prior Year Delinquencies Collec tion 1,610 Subtotal - Taxes 132,430 Other Revenues 3,030 Transfers In 21,590 T otal Re v e nue s Budge t 157,050 Contribution to/(Use of) Fund Balance (150)$ Total District EBU Count 3,926.00 Ac tual Asses s m ent per EBU 33.32$ Maxim um Allowable As s es sm ent per EBU 33.32$ Page 567 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 7 – City of Rancho Cucamonga 2 Fiscal Year 2023/24 ATTACHMENT 16 In making the assessments contained herein pursuant to the 1972 Act: 1. I have identified all parcels which will have a special benefit conferred upon them from the improvement described in the Special Benefit Section of this Annual Engineer’s Report (the “Specially Benefited Parcels”). For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is included in this Annual Engineer’s Report. 2. I have evaluated the costs and expenses of the improvements upon the Specially Benefitted Parcels. In making such evaluation: a. The proportionate special benefit derived by each Specially Benefited Parcel from the improvements was determined in relationship to the entirety of the maintenance costs of the improvements; b. No assessment has been imposed on any Specially Benefited Parcel which exceeds the reasonable cost of the proportional special benefit conferred on such parcel from the improvements; and c. Any general benefits from the improvements have been separated from the special benefits and only special benefits have been assessed. I, the undersigned, respectfully submit the enclosed Annual Engineer’s Report and, to the best of my knowledge, information and belief, I certify that the Annual Engineer’s Report and Assessment Diagram included herein have been prepared and computed in accordance with the order of the City Council of the City of Rancho Cucamonga and the Assessment Law. Jason C. Welday Director of Engineering Services/City Engineer Page 568 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 7 – City of Rancho Cucamonga 3 Fiscal Year 2023/24 ATTACHMENT 16 INTRODUCTION Reason for Assessment Approval of the assessment covered by this Engineer’s Report will generate the revenue necessary to: Provide for the maintenance and servicing of the improvements described in this Engineer’s Report. Maintenance may include but is not limited to, all of the following: the upkeep, repair, removal or replacement of all or any part of any improvement. Servicing means the furnishing of electricity, gas or other illuminating energy for the lighting or appurtenant facilities. This shall also include material, vehicle, equipment, capital improvements, the installation of LED street lighting, and administrative costs associated with the annual administration and operation of the District. Process for Annual Assessment The City cannot levy and collect annual assessments within the District without complying with the procedures specified in the 1972 Act. On an annual basis, an Engineer’s Report must be prepared which contains a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. The City Council must also adopt a resolution of intention which: •Declares the intention of the City Council to levy and collect assessments within the District for the fiscal year stated therein. •Generally describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements. •Refers to the District by its distinctive designation and indicate the general location of the District. •Refers to the Engineer’s Report, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. •Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment. •States whether the assessment is proposed to increase from the previous year. If the assessments are to be levied in the same or lesser amounts than the maximum assessment amount approved, the City Clerk shall give notice by causing the resolution of intention to be published. Any interested person may, prior to the conclusion of the public hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. Page 569 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 7 – City of Rancho Cucamonga 4 Fiscal Year 2023/24 ATTACHMENT 16 During the course or upon conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including the improvements, to the zones within the District, and the proposed diagram or the proposed assessment. The City Council, upon conclusion of the public hearing must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the assessment. If the assessment to be levied exceeds the maximum assessment amount previously approved, the City must comply with the procedures specified in Article XIII D and Proposition 218. The voters in the State of California in November 1996 added Article XIII D to the California Constitution imposing, among other requirements, the necessity for the City to conduct an assessment ballot procedure to enable the owners of each property on which assessments are proposed to be enacted or increased, the opportunity to express their support for, or opposition to, the proposed assessment or increase in such assessment. PLANS AND SPECIFICATIONS The District provides for the administration, maintenance, operations, and servicing of various improvements located within the public right-of-way and dedicated easements within the boundaries of the District. Description of the Boundaries of the District The District is located in the City of Rancho Cucamonga, State of California. The boundaries of the District are generally described as that area of the City known as North Etiwanda, which is generally bounded by Highland Ave on the south, Day Creek Channel on the west and City limits on the east and north. Reference is also made to the Assessment Diagram included in this Report. Description of Improvements and Services The improvements are the maintenance and servicing of street lights, traffic signals and appurtenant facilities throughout the District. The maintenance and servicing includes, but is not limited to, furnishing electric current for public lighting facilities including street lights and traffic signals, and associated appurtenant facilities. Services include personnel, materials, contracting services, utilities, and all necessary costs associated with the maintenance, replacement and repair required to keep the improvements in operational and satisfactory condition. In addition, it is the City's intention to continue to use cost effective materials, in order to lower expenses of the District. In Fiscal Year 2017/18, the acquisition by the City of the street lights and installation of LED street lighting specially benefiting the properties within the District has been added to the improvements. Page 570 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 7 – City of Rancho Cucamonga 5 Fiscal Year 2023/24 ATTACHMENT 16 Map of Improvements The following page shows the map of street light and traffic signal improvements to be maintained using District funds. Page 571 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 7 – City of Rancho Cucamonga 6 Fiscal Year 2023/24 ATTACHMENT 16 Page 572 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 7 – City of Rancho Cucamonga 7 Fiscal Year 2023/24 ATTACHMENT 16 ESTIMATE OF COSTS The estimated costs of administration, maintenance, operations, and servicing the improvements as described in the Plans and Specifications are summarized below. Each year, as part of the District levy calculation process, the costs and expenses are reviewed and the annual costs are projected for the following fiscal year. District Budget Fisc al Year 2023/24 Budget Expe nditure s Ope rations and Mainte nance : Operations and Maintenanc e: Contrac t Servic es 5,630 Utilities: Elec tric Utilities 100,760 As ses s ment Adm inistration 13,980 Admin./General Overhead 6,520 Subtotal - Ope rations and M ainte nance 126,890 T ransfe r Out - Ge ne ral Stre e t Lights Fund 30,310 T otal Expe nditure s Budge t 157,200$ Page 573 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 7 – City of Rancho Cucamonga 8 Fiscal Year 2023/24 ATTACHMENT 16 Fis c al Year 2023/24 Budget Re v e nue s T axe s: Es tim ated Ass ess m ents , Net of Es tim ated Delinquencies 130,820$ Antic ipated Prior Year Delinquenc ies Collec tion 1,610 Subtotal - T axe s 132,430 Othe r Re v e nue s: Interes t Earnings 3,030 T ransfe r In: Trans fer In - General Fund 21,590 T otal Re v e nue s Budge t 157,050 Contribution to/(Use of) Fund Balance (150)$ Total Gros s Es tim ated Ass ess m ents 130,814.32$ Total Dis tric t EBU Count 3,926.00 Ac tual As ses sment per EBU - Fisc al Year 2023/24 33.32$ Maximum Allowable As ses sment per EBU - Fisc al Year 2023/24 33.32$ The maximum allowable assessment per Equivalent Benefit Unit (EBU) listed in the District budget above, is the amount which was approved in Fiscal Year 1996/97 and subsequent District annexations. Each year, prior to the assessments being placed on the tax roll, the City will review the budget and determine the amount needed to maintain the improvements for the upcoming fiscal year. The actual assessment per EDU will be based on the total amount of funds needed to maintain the improvements in a satisfactory and healthy condition. The actual assessment amount may be lower than the maximum allowable assessment; however, it may not exceed the maximum unless the increase is approved by the property owners in accordance with Proposition 218. It is the intent of the City to maintain an Operating Reserve which shall not exceed the estimated costs of maintenance and servicing of the improvements prior to December 10 of the fiscal year, or when the City expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. The reserve balance information for the District is as follows: Operating Res erve Estim ated Res erve Fund Balance, June 30, 2023 164,533$ Contribution to/(Use of) Reserve - Fis c al Year 2023/24 (150) Estim ated Res erve Fund Balance, June 30, 2024 164,383$ Page 574 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 7 – City of Rancho Cucamonga 9 Fiscal Year 2023/24 ATTACHMENT 16 Definitions of Budget Items The following definitions describe the costs and expenses included in the District Budget: Personnel Services: This item includes the costs attributed to the salaries of all full-time and part-time employees dedicated to maintenance of the District improvements. Additionally, this includes benefits available to City employees. Operations and Maintenance: This item includes the costs of City staff to perform maintenance duties within the boundaries of the District. Utilities: This item includes the costs to furnish electricity and telephone services, as required, for the operation and maintenance of the street lights, traffic signals, and appurtenant facilities throughout the District. Assessment Administration: This item includes the cost to all particular departments and staff of the City, and consultants for providing the administration, coordination and management of District services, operations, and incidental expenses related to the District. This item also includes creation of an annual Engineer's Report, resolutions and placing the assessment amounts onto the County tax roll each year, along with responding to any public inquiries and future Proposition 218 balloting proceedings. General Overhead: This item includes the costs of all central services departments of the City for providing the coordination of District services, inspections, annual bid management, responding to public concerns, public education, accounting, auditing and procedural matters associated with the District. This item also includes an allocation for general City staff time for administrative functions and systems that provide for a functional and operational District within the City's administrative structure. Capital Outlay: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include installation of safety lights and other large improvements. Debt Service: This item includes the repayment of interest and principal to the City Capital Reserve Fund for the acquisition of street lights and installation of LED street lighting within the District. In Fiscal Year 2023/24, the debt service has been suspended due to the structural operating deficit and will be routinely monitored. Transfer Out - General City Street Lights Fund: This item includes the cost for the replacement and installation of District owned street lights. These costs are incurred in the General City Street Lights Fund and reimbursed by the District. Page 575 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 7 – City of Rancho Cucamonga 10 Fiscal Year 2023/24 ATTACHMENT 16 Other Revenues: This includes other revenues that are not levied through the annual assessments that support the District operations. These other revenues may include: interest earnings and Developer Energizing Fees. METHOD OF ASSESSMENT Overview Pursuant to the 1972 Act and Article XIII D, all parcels that have a special benefit conferred upon them as a result of the maintenance and operation of improvements and services shall be identified, and the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entire costs of the maintenance and operation of improvements. The 1972 Act, permits the establishment of assessment districts for the purpose of providing certain public improvements which include the public lighting facilities, including traffic signals. Section 22573 of the 1972 Act requires that maintenance assessments must be levied according to benefit rather than according to assessed value. This Section states: The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefit to be received by each such lot or parcel from the improvements. The determination of whether or not a lot or parcel will benefit from the improvements shall be made pursuant to the Improvement Act of 1911 (Division 7 commencing with Section 5000) [of the Streets and Highways Code, State of California]. Section 22547 of the 1972 Act also permits the designation of zones of benefit within any individual assessment district if "by reasons or variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvement". Article XIII D, Section 4(a) of the California Constitution limits the amount of any assessment to the proportional special benefit conferred on the property. Article XIII D also provides that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment. Exempted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements and rights-of-ways, public greenbelts and public parkways. The net amount to be assessed may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels. Proposition 218, approved by Page 576 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 7 – City of Rancho Cucamonga 11 Fiscal Year 2023/24 ATTACHMENT 16 the voters in November 1996, requires the City to separate general benefit from special benefit, where only special benefit is assessed. Special Benefit The maintenance and servicing of the improvements within the District (which are described in the Description of Improvements and Services Section of this report) are for the benefit of the properties within the District, and as such confer a special and direct benefit to parcels within the District by: •improving the livability, safety, appearance, and desirability for properties within the boundaries of the District, and •ensuring that improvements do not reach a state of deterioration or disrepair so as to be materially detrimental to properties within the District, and •providing for safe vehicular and pedestrian access for properties within the District, and •providing beautification and overall enhancement to properties within the District. The above mentioned items affect the assessed property in a way that is particular and distinct from their effect on other parcels and that real property in general and the public at large do not share. They contribute to a specific enhancement of the properties within the District. Since these improvements were installed and are maintained specifically for the properties within the District; only properties within the District receive a special benefit and are assessed for said maintenance. General Benefit In addition to the special benefits received by parcels within the District, there are derivative general benefits that are conferred on parcels outside the boundaries of the District which include: •the safety and visual enhancement of the area to persons or vehicles that may travel through the District However, it has been determined that these benefits are derivative and do not provide a direct benefit to parcels outside of the district that are not being assessed. Method of Assessment Spread Each of the parcels within the District is deemed to receive special benefit from the improvements. Each parcel that has a special benefit conferred upon it as a result of the maintenance and operation of improvements are identified and the proportionate special benefit derived by each identified parcel is determined in relationship to the entire costs of the maintenance and operation of the improvements. Page 577 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 7 – City of Rancho Cucamonga 12 Fiscal Year 2023/24 ATTACHMENT 16 When the District was formed, Article XIII D and Proposition 218 had not yet been passed. Upon the passage of Article XIII D and the subsequent passage of the Proposition Omnibus Implementation Act, new rules were put into place. Due to the changes in legal requirements, as property annexed to the District after the passage of the Assessment Law, the description of the method of assessment became more refined; however, the assessment per parcel has remained the same since Fiscal Year 1996/97. Further, no parcel included in the District formation or annexations prior to when the language was refined, are now being levied differently than they were at the time the District was formed or the parcels were annexed. To assess special benefit appropriately, it is necessary to relate the different type of parcel improvements to each other. The Equivalent Dwelling Unit ("EDU") method of apportionment uses the single-family home as the basic unit of assessment. A single-family home equals one Equivalent Dwelling Unit (EDU). Every other land-use is converted to EDUs based on an assessment formula that equates to the property's specific development status, type of development (land-use), and size of the property, as compared to a single-family home. The following table provides the weighting factors applied to various land- use types, as assigned by County use code, to determine each parcel's EDU assignment. Land-Use Equivalent Dwelling Units Prope rty T ype (County Use Code )EBU Value M ultiplie r Single Family Res idential 1.00 Parc el Multi-Family Res idential 0.50 Unit Non-Residential 2.00 Acre The use of the latest County Assessor's Secured Roll shall be the basis for the Property Type determination and units/acreage assignments, unless better data is available to the City. In addition, if any parcel within the District is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, the Property Type and EDU assignment shall be based on the correct parcel number and/or new parcel number(s) County use code and subsequent property information. If a single parcel has changed to multiple parcels, the EDU assignment and assessment amount applied to each of the new parcels will be recalculated rather than spread the proportionate share of the original assessment. Page 578 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 7 – City of Rancho Cucamonga 13 Fiscal Year 2023/24 ATTACHMENT 16 The following table summarizes the Fiscal Year 2023/24 maximum allowable assessment rates for the District: Prope rty T ype (County Use Code ) M aximum Allowable Asse ssme nt Rate pe r EBU Actual Ase ssment Rate pe r EBU T otal Units/Acre s T otal EBUs Single Family Residential $33.32 $33.32 3,926.00 3,926.00 The total amount of maintenance and incidental costs for maintaining the street lights and traffic signals is assessed to the individual parcels of real property within the District in proportion to the special benefit received by such parcels of real property. The proposed individual assessments are shown on the assessment roll in this report. ASSESSMENT DIAGRAM An Assessment Diagram for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Assessor of the County San Bernardino, at the time this report was prepared, and are incorporated by reference herein and made part of this Engineer's Report. Page 579 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 7 – City of Rancho Cucamonga 14 Fiscal Year 2023/24 ATTACHMENT 16 Page 580 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 7 – City of Rancho Cucamonga 15 Fiscal Year 2023/24 ATTACHMENT 16 ASSESSMENT ROLL AND ANNEXATIONS Assessment Roll The assessment roll is a listing of the assessment for Fiscal Year 2023/24 apportioned to each lot or parcel, as shown on the last equalized roll of the Assessor of the County of San Bernardino. The following table summarizes the Fiscal Year 2023/24 actual assessments for the District: Prope rty T ype (County Use Code ) Actual Asse ssme nt Rate pe r EBU T otal Units/Acre s T otal EBUs T otal Asse ssme nt Single Fam ily Res idential $33.32 3,926.00 3,926.00 $130,814.32 T otals 3,926.00 3,926.00 $130,814.32 A copy of the full assessment roll is available for review in the City Clerk's office. Annexations The following annexation is effective for Fiscal Year 2023/24: Apn Annexation Date Proje ct Name T otal Units/ Acre s T otal EBUs Property T ype 0225-191-09 and -17 06/01/22 SUBTT20344 17.00 17.00 Single-Family Res Page 581 of 715 ATTACHMENT 17 Annual Engineer’s Report Fiscal Year 2023/24 City of Rancho Cucamonga Street Lighting Maintenance District No. 8 (South Etiwanda) Page 582 of 715 CITY OF RANCHO CUCAMONGA STREET LIGHTING MAINTENANCE DISTRICT NO. 8 (SOUTH ETIWANDA) 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909.477.2700 Fax: 909.477.2845 CITY COUNCIL L. Dennis Michael, Mayor Lynne B. Kennedy, Mayor Pro Tem Ryan A. Hutchison, Council Member Kristine D. Scott, Council Member Ashley N. Stickler, Council Member CITY STAFF John R. Gillison, City Manager Elisa Cox, Assistant City Manager Jason C. Welday, Director of Engineering Services/City Engineer William Wittkopf, Public Works Director Noah Daniels, Finance Director Page 583 of 715 TABLE OF CONTENTS ENGINEER’S LETTER 1 INTRODUCTION 3 Reason for Assessment 3 Process for Annual Assessment 3 PLANS AND SPECIFICATIONS 4 Description of the Boundaries of the District 4 Description of Improvements and Services 4 Map of Improvements 5 ESTIMATE OF COSTS 7 District Budget 7 Definitions of Budget Items 9 METHOD OF ASSESSMENT 10 Overview 10 Special Benefit 11 General Benefit 11 Method of Assessment Spread 11 ASSESSMENT DIAGRAM 13 ASSESSMENT ROLL AND ANNEXATIONS 15 Assessment Roll 15 Annexations 15 Page 584 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 8 – City of Rancho Cucamonga 1 Fiscal Year 2023/24 ATTACHMENT 17 ENGINEER’S LETTER WHEREAS, on June 7, 2023, the City Council of Rancho Cucamonga (the “City”), under the Landscaping and Lighting Act of 1972 (the “1972 Act”) adopted its Resolution No. 2023-058, a Resolution Initiating Proceedings for the Levy of Annual Assessments for Street Light Maintenance District No. 8 (South Etiwanda) (the “District”); and WHEREAS, the Resolution Initiating Proceedings directed the City Engineer to prepare and file an Annual Engineer’s Report for Fiscal Year 2023/24 pursuant to the requirements of the 1972 Act. The Annual Engineer’s Report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the maintenance, operations and servicing of the improvements for the District for the referenced fiscal year, a diagram for the District, showing the area and properties proposed to be assessed, and an assessment of the estimated costs of the maintenance, operations and servicing of the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received; and NOW THEREFORE, the following assessment is proposed to be authorized in order to pay for the acquisition of street lights, the installation of Light Emitting Diode (LED) street lighting, and estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the boundaries of the District in proportion to the special benefit received. The following table summarizes the proposed assessment. Fis c al Year 2023/24 Budget Expe nditure s Pers onnel Servic es 50,690$ Operations and Maintenanc e 50,780 Transfer Out 10,680 T otal Expe nditure s Budge t 112,150 Re v e nue s Taxes : Estim ated As s ess m ents, Net of Es tim ated Delinquenc ies 81,120 Antic ipated Prior Year Delinquenc ies Collec tion 610 Subtotal - Taxes 81,730 Other Revenues 37,420 T otal Re v e nue s Budge t 119,150 Contribution to/(Use of) Fund Balance 7,000$ Total Dis trict EBU Count 2,650.78 Actual As ses s m ent per EBU 30.60$ Maxim um Allowable As s ess ment per EBU 193.75$ Page 585 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 8 – City of Rancho Cucamonga 2 Fiscal Year 2023/24 ATTACHMENT 17 In making the assessments contained herein pursuant to the 1972 Act: 1. I have identified all parcels which will have a special benefit conferred upon them from the improvement described in the Special Benefit Section of this Annual Engineer’s Report (the “Specially Benefited Parcels”). For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is included in this Annual Engineer’s Report. 2. I have evaluated the costs and expenses of the improvements upon the Specially Benefitted Parcels. In making such evaluation: a. The proportionate special benefit derived by each Specially Benefited Parcel from the improvements was determined in relationship to the entirety of the maintenance costs of the improvements; b. No assessment has been imposed on any Specially Benefited Parcel which exceeds the reasonable cost of the proportional special benefit conferred on such parcel from the improvements; and c. Any general benefits from the improvements have been separated from the special benefits and only special benefits have been assessed. I, the undersigned, respectfully submit the enclosed Annual Engineer’s Report and, to the best of my knowledge, information and belief, I certify that the Annual Engineer’s Report and Assessment Diagram included herein have been prepared and computed in accordance with the order of the City Council of the City of Rancho Cucamonga and the Assessment Law. Jason C. Welday Director of Engineering Services/City Engineer Page 586 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 8 – City of Rancho Cucamonga 3 Fiscal Year 2023/24 ATTACHMENT 17 INTRODUCTION Reason for Assessment Approval of the assessment covered by this Engineer’s Report will generate the revenue necessary to: Provide for the maintenance and servicing of the improvements described in this Engineer’s Report. Maintenance may include but is not limited to, all of the following: the upkeep, repair, removal or replacement of all or any part of any improvement. Servicing means the furnishing of electricity, gas or other illuminating energy for the lighting or appurtenant facilities. This shall also include material, vehicle, equipment, capital improvements, the installation of LED street lighting, and administrative costs associated with the annual administration and operation of the District. Process for Annual Assessment The City cannot levy and collect annual assessments within the District without complying with the procedures specified in the 1972 Act. On an annual basis, an Engineer’s Report must be prepared which contains a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. The City Council must also adopt a resolution of intention which: •Declares the intention of the City Council to levy and collect assessments within the District for the fiscal year stated therein. •Generally describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements. •Refers to the District by its distinctive designation and indicate the general location of the District. •Refers to the Engineer’s Report, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. •Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment. •States whether the assessment is proposed to increase from the previous year. If the assessments are to be levied in the same or lesser amounts than the maximum assessment amount approved, the City Clerk shall give notice by causing the resolution of intention to be published. Any interested person may, prior to the conclusion of the public hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. Page 587 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 8 – City of Rancho Cucamonga 4 Fiscal Year 2023/24 ATTACHMENT 17 During the course or upon conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including the improvements, to the zones within the District, and the proposed diagram or the proposed assessment. The City Council, upon conclusion of the public hearing must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the assessment. If the assessment to be levied exceeds the maximum assessment amount previously approved, the City must comply with the procedures specified in Article XIII D and Proposition 218. The voters in the State of California in November 1996 added Article XIII D to the California Constitution imposing, among other requirements, the necessity for the City to conduct an assessment ballot procedure to enable the owners of each property on which assessments are proposed to be enacted or increased, the opportunity to express their support for, or opposition to, the proposed assessment or increase in such assessment. PLANS AND SPECIFICATIONS The District provides for the administration, maintenance, operations, and servicing of various improvements located within the public right-of-way and dedicated easements within the boundaries of the District. Description of the Boundaries of the District The District is located in the City of Rancho Cucamonga, State of California. The boundaries of the District are generally described as that area of the City known as South Etiwanda, which is generally bounded by Etiwanda Ave on the west, Highland Ave on the north and Foothill Blvd on the south. The southern portion of the District is bounded by East Ave on the east and the northern portion of the District is bounded by the I-15 Freeway on the east. Reference is also made to the Assessment Diagram included in this Report. Description of Improvements and Services The improvements are the maintenance and servicing of street lights, traffic signals and appurtenant facilities throughout the District. The maintenance and servicing includes, but is not limited to, furnishing electric current for public lighting facilities including street lights and traffic signals, and associated appurtenant facilities. Services include personnel, materials, contracting services, utilities, and all necessary costs associated with the maintenance, replacement and repair required to keep the improvements in operational and satisfactory condition. In addition, it is the City's intention to continue to use cost effective materials, in order to lower expenses of the District. In Fiscal Year 2017/18, the acquisition by the City of the street lights and installation of LED street lighting specially benefiting the properties within the District has been added to the improvements. Page 588 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 8 – City of Rancho Cucamonga 5 Fiscal Year 2023/24 ATTACHMENT 17 Map of Improvements The following page shows the map of street light and traffic signal improvements to be maintained using District funds. Page 589 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 8 – City of Rancho Cucamonga 6 Fiscal Year 2023/24 ATTACHMENT 17 Page 590 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 8 – City of Rancho Cucamonga 7 Fiscal Year 2023/24 ATTACHMENT 17 ESTIMATE OF COSTS The estimated costs of administration, maintenance, operations, and servicing the improvements as described in the Plans and Specifications are summarized below. Each year, as part of the District levy calculation process, the costs and expenses are reviewed and the annual costs are projected for the following fiscal year. District Budget Fis c al Year 2023/24 Budget Expe nditure s Pe rsonne l Se rv ice s: Regular Salaries 33,790$ Fringe Benefits 16,900 Subtotal - Pe rsonne l 50,690 Ope rations and M ainte nance : Operations and Maintenanc e: Training 220 Membership Dues 80 O & M/General 410 Contrac t Servic es 1,980 Contrac t Equipment Maintenanc e/Repair 50 Subtotal - Operations and Maintenanc e 2,740 Utilities : Electric Utilities 34,640 As s ess ment Adm inis tration 5,700 Admin./General Overhead 7,700 Subtotal - Ope rations and Mainte nance 50,780 T ransfe r Out - Ge ne ral City Stre e t Lights Fund 10,680 T otal Expe nditure s Budge t 112,150$ Page 591 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 8 – City of Rancho Cucamonga 8 Fiscal Year 2023/24 ATTACHMENT 17 Fiscal Year 2023/24 Budget Re v e nue s T axe s: Estimated Ass es sm ents, Net of Es tim ated Delinquenc ies 81,120$ Anticipated Prior Year Delinquenc ies Collection 610 Subtotal - T axe s 81,730 Othe r Re v e nue s: Interest Earnings 37,420 T otal Re v e nue s Budge t 119,150 Contribution to/(Use of) Fund Balance 7,000$ Total Gros s Estimated Ass es sm ents 81,113.86$ Total Dis tric t EBU Count 2,650.78 Ac tual As ses s ment per EBU - Fis c al Year 2023/24 30.60$ Maxim um Allowable As s ess m ent per EBU - Fisc al Year 2023/24 193.75$ The maximum allowable assessment per Equivalent Benefit Unit (EBU) listed in the District budget above, is the amount which was approved in Fiscal Year 1996/97 and subsequent District annexations. Each year, prior to the assessments being placed on the tax roll, the City will review the budget and determine the amount needed to maintain the improvements for the upcoming fiscal year. The actual assessment per EBU will be based on the total amount of funds needed to maintain the improvements in a satisfactory and healthy condition. The actual assessment amount may be lower than the maximum allowable assessment; however, it may not exceed the maximum unless the increase is approved by the property owners in accordance with Proposition 218. It is the intent of the City to maintain an Operating Reserve which shall not exceed the estimated costs of maintenance and servicing of the improvements prior to December 10 of the fiscal year, or when the City expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. The reserve balance information for the District is as follows: Operating Res erve Es tim ated Reserve Fund Balanc e, June 30, 2023 1,813,057$ Contribution to/(Us e of) Reserve - Fisc al Year 2023/24 7,000 Es tim ated Reserve Fund Balanc e, June 30, 2024 1,820,057$ Page 592 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 8 – City of Rancho Cucamonga 9 Fiscal Year 2023/24 ATTACHMENT 17 Definitions of Budget Items The following definitions describe the costs and expenses included in the District Budget: Personnel Services: This item includes the costs attributed to the salaries of all full-time and part-time employees dedicated to maintenance of the District improvements. Additionally, this includes benefits available to City employees. Operations and Maintenance: This item includes the costs of City staff to perform maintenance duties within the boundaries of the District. Utilities: This item includes the costs to furnish electricity and telephone services, as required, for the operation and maintenance of the street lights, traffic signals, and appurtenant facilities throughout the District. Assessment Administration: This item includes the cost to all particular departments and staff of the City, and consultants for providing the administration, coordination and management of District services, operations, and incidental expenses related to the District. This item also includes creation of an annual Engineer's Report, resolutions and placing the assessment amounts onto the County tax roll each year, along with responding to any public inquiries and future Proposition 218 balloting proceedings. General Overhead: This item includes the costs of all central services departments of the City for providing the coordination of District services, inspections, annual bid management, responding to public concerns, public education, accounting, auditing and procedural matters associated with the District. This item also includes an allocation for general City staff time for administrative functions and systems that provide for a functional and operational District within the City's administrative structure. Capital Outlay: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include installation of safety lights and other large improvements. Debt Service: This item includes the repayment of interest and principal to the City General Fund for the acquisition of street lights and installation of LED street lighting within the District. In FY 2021/22, the outstanding balance of the interfund was fully repaid. Transfer Out - General City Street Lights Fund: This item includes the cost for the replacement and installation of District owned street lights. These costs are incurred in the General City Street Lights Fund and reimbursed by the District. Other Revenues: This includes other revenues that are not levied through the annual assessments that support the District operations. These other revenues may include: interest earnings and Developer Energizing Fees. Page 593 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 8 – City of Rancho Cucamonga 10 Fiscal Year 2023/24 ATTACHMENT 17 METHOD OF ASSESSMENT Overview Pursuant to the 1972 Act and Article XIII D, all parcels that have a special benefit conferred upon them as a result of the maintenance and operation of improvements and services shall be identified, and the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entire costs of the maintenance and operation of improvements. The 1972 Act, permits the establishment of assessment districts for the purpose of providing certain public improvements which include the public lighting facilities, including traffic signals. Section 22573 of the 1972 Act requires that maintenance assessments must be levied according to benefit rather than according to assessed value. This Section states: The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefit to be received by each such lot or parcel from the improvements. The determination of whether or not a lot or parcel will benefit from the improvements shall be made pursuant to the Improvement Act of 1911 (Division 7 commencing with Section 5000) [of the Streets and Highways Code, State of California]. Section 22547 of the 1972 Act also permits the designation of zones of benefit within any individual assessment district if "by reasons or variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvement". Article XIII D, Section 4(a) of the California Constitution limits the amount of any assessment to the proportional special benefit conferred on the property. Article XIII D also provides that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment. Exempted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements and rights-of-ways, public greenbelts and public parkways. The net amount to be assessed may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels. Proposition 218, approved by the voters in November 1996, requires the City to separate general benefit from special benefit, where only special benefit is assessed. Page 594 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 8 – City of Rancho Cucamonga 11 Fiscal Year 2023/24 ATTACHMENT 17 Special Benefit The maintenance and servicing of the improvements within the District (which are described in the Description of Improvements and Services Section of this report) are for the benefit of the properties within the District, and as such confer a special and direct benefit to parcels within the District by: •improving the livability, safety, appearance, and desirability for properties within the boundaries of the District, and •ensuring that improvements do not reach a state of deterioration or disrepair so as to be materially detrimental to properties within the District, and •providing for safe vehicular and pedestrian access for properties within the District, and •providing beautification and overall enhancement to properties within the District. The above mentioned items affect the assessed property in a way that is particular and distinct from their effect on other parcels and that real property in general and the public at large do not share. They contribute to a specific enhancement of the properties within the District. Since these improvements, including the community trails, were installed and are maintained specifically for the properties within the District; only properties within the District receive a special benefit and are assessed for said maintenance. General Benefit In addition to the special benefits received by parcels within the District, there are derivative general benefits that are conferred on parcels outside the boundaries of the District which include: •the safety and visual enhancement of the area to persons or vehicles that may travel through the District However, it has been determined that these benefits are derivative and do not provide a direct benefit to parcels outside of the district that are not being assessed. Method of Assessment Spread Each of the parcels within the District is deemed to receive special benefit from the improvements. Each parcel that has a special benefit conferred upon it as a result of the maintenance and operation of improvements are identified and the proportionate special benefit derived by each identified parcel is determined in relationship to the entire costs of the maintenance and operation of the improvements. When the District was formed, Article XIII D and Proposition 218 had not yet been passed. Upon the passage of Article XIII D and the subsequent passage of the Proposition Omnibus Implementation Act, new rules were put into place. Due to the changes in legal requirements, as Page 595 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 8 – City of Rancho Cucamonga 12 Fiscal Year 2023/24 ATTACHMENT 17 property annexed to the District after the passage of the Assessment Law, the description of the method of assessment became more refined; however, the assessment per parcel has remained the same since Fiscal Year 1996/97. Further, no parcel included in the District formation or annexations prior to when the language was refined, are now being levied differently than they were at the time the District was formed or the parcels were annexed. To assess special benefit appropriately, it is necessary to relate the different type of parcel improvements to each other. The EBU method of apportionment uses the single-family home as the basic unit of assessment. A single-family home equals one EBU. Every other land-use is converted to EBUs based on an assessment formula that equates to the property's specific development status, type of development (land-use), and size of the property, as compared to a single-family home. The following table provides the weighting factors applied to various land-use types, as assigned by County use code, to determine each parcel's EBU assignment. Land-Use Equivalent Dwelling Units Prope rty T ype (County Use Code )EBU Value Multiplie r Single Family Res idential 1.00 Parcel Multi-Fam ily Res idential 1.00 Unit Non-Residential 2.00 Acre The use of the latest County Assessor's Secured Roll shall be the basis for the Property Type determination and units/acreage assignments, unless better data is available to the City. In addition, if any parcel within the District is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, the Property Type and EBU assignment shall be based on the correct parcel number and/or new parcel number(s) County use code and subsequent property information. If a single parcel has changed to multiple parcels, the EBU assignment and assessment amount applied to each of the new parcels will be recalculated rather than spread the proportionate share of the original assessment. The following table summarizes the Fiscal Year 2023/24 maximum allowable assessment rates for the District: Prope rty T ype (County Use Code ) M aximum Allowable Assessme nt Rate pe r EBU Actual Ase ssme nt Rate per EBU T otal Units/Acre s T otal EBUs Single Fam ily Residential $193.75 $30.60 1,206.00 1,206.00 Multi-Family Residential 193.75 30.60 1,381.00 1,381.00 Non-Res idential 193.75 30.60 31.89 63.78 Page 596 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 8 – City of Rancho Cucamonga 13 Fiscal Year 2023/24 ATTACHMENT 17 The total amount of maintenance and incidental costs for maintaining the street lights and traffic signals is assessed to the individual parcels of real property within the District in proportion to the special benefit received by such parcels of real property. The proposed individual assessments are shown on the assessment roll in this report. ASSESSMENT DIAGRAM An Assessment Diagram for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Assessor of the County San Bernardino, at the time this report was prepared, and are incorporated by reference herein and made part of this Engineer's Report. Page 597 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 8 – City of Rancho Cucamonga 14 Fiscal Year 2023/24 ATTACHMENT 17 Page 598 of 715 ____________________________________________________________________________ Street Lighting Maintenance District No. 8 – City of Rancho Cucamonga 15 Fiscal Year 2023/24 ATTACHMENT 17 ASSESSMENT ROLL AND ANNEXATIONS Assessment Roll The assessment roll is a listing of the assessment for Fiscal Year 2023/24 apportioned to each lot or parcel, as shown on the last equalized roll of the Assessor of the County of San Bernardino. The following table summarizes the Fiscal Year 2023/24 actual assessments for the District: Prope rty T ype (County Use Code ) Actual Asse ssme nt Rate per EBU T otal Units/Acre s T otal EBUs T otal Assessme nt Single Family Res idential $30.60 1,206.00 1,206.00 $36,903.60 Multi-Family Res idential 30.60 1,381.00 1,381.00 42,258.60 Non-Residential 30.60 31.89 63.78 1,951.66 T otals 2,618.89 2,650.78 $81,113.86 A copy of the full assessment roll is available for review in the City Clerk's office. Annexations The following annexations are effective for Fiscal Year 2023/24: Apn Anne xation Date Proje ct Name T otal Units/ Acre s T otal EBUs Property T ype 1100-201-08 01/19/22 DRC2014-01130 193.00 193.00 Multi-Family Res 1100-191-04 02/02/22 SUBTT20148 131.00 131.00 Multi-Family Res Page 599 of 715 ATTACHMENT 18 Annual Engineer’s Report Fiscal Year 2023/24 City of Rancho Cucamonga Parks and Recreation Improvement District No. PD-85 Jason C. Welday Director of Engineering Services/City Engineer Page 600 of 715 CITY OF RANCHO CUCAMONGA PARKS AND RECREATION IMPROVEMENT DISTRICT NO. PD-85 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909.477.2700 Fax: 909.477.2845 CITY COUNCIL L. Dennis Michael, Mayor Lynne B. Kennedy, Mayor Pro Tem Ryan A. Hutchison, Council Member Kristine D. Scott, Council Member Ashley N. Stickler, Council Member CITY STAFF John R. Gillison, City Manager Elisa Cox, Assistant City Manager Jason C. Welday, Director of Engineering Services/City Engineer William Wittkopf, Public Works Director Noah Daniels, Finance Director Page 601 of 715 TABLE OF CONTENTS AUTHORITY FOR REPORT 1 FINDINGS 1 DISTRICT ANALYSIS 2 ESTIMATE OF WORK 3 District Budget 3 Definitions of Budget Items 5 METHOD OF SPREAD 6 Annexations 8 Boundary Map 8 Page 602 of 715 ____________________________________________________________________________ Park and Recreation Improvement District No. PD-85 – City of Rancho Cucamonga 1 Fiscal Year 2023/24 ATTACHMENT 18 AUTHORITY FOR REPORT This report for the Fiscal Year 2023/24 is prepared pursuant to the order of the City Council of the City of Rancho Cucamonga (the “City”) and in compliance with the requirements of Article 4, Chapter 1, Landscape and Lighting Act of 1972 (the “1972 Act”), being Division 15, Section 22500 of the Streets and Highways code. Provisions for this annual assessment are included in Chapter 3 of the 1972 Act. The purpose of this report is to set forth findings and the assessment analysis for the annual levy of assessments for the Park and Recreation Improvement District No. PD-85 (the “District”). This District, using direct benefit assessments, was originally created to provide funds to finance the cost of construction, maintenance, operation and debt payment of Heritage Community Park and Red Hill Community Park in the City of Rancho Cucamonga. Subsequently, the debt has been repaid with only the ongoing maintenance and operation with periodic capital improvement expenditures of the parks remaining. FINDINGS Section 22573 of the 1972 Act, requires assessments to be levied according to benefit rather than according to assessed value. The section states: The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements. The means of determining whether or not a parcel will benefit from the improvements is contained in the Improvement Act of 1911 (Division 7, commencing with Section 5000 of the Streets and Highways Code, State of California). The 1972 Act also provides for the classification of various areas within an assessment district into benefit areas where, by reason of variations in the nature, location, and extent of the improvements, the various areas will receive differing degrees of all territory receiving substantially the same degree of benefit from the improvements and may consist of contiguous or noncontiguous areas. As the assessments are levied on the bases of benefit, they are considered a user’s fee, not a tax; and, therefore, are not governed by Article XIII A. Properties owned by public agencies, such as a city, county, state, or the Federal government, are not assessable without the approval of the particular agency and, normally, are not assessed. Certain other parcels used for railroad mainline right-of-way, public utility transmission right-of-way, and common areas are also exempt from assessment. The assessment for mobile home parks will be based upon underlying lot acreage. Page 603 of 715 ____________________________________________________________________________ Park and Recreation Improvement District No. PD-85 – City of Rancho Cucamonga 2 Fiscal Year 2023/24 ATTACHMENT 18 DISTRICT ANALYSIS A. District Boundary The District includes all of the City of Rancho Cucamonga with the general exception of land east of Deer Creek Channel and the Victoria, Caryn and Terra Vista Planned Communities. All parcels of real property affected are more particularly described in maps prepared in accordance with Section 327 of the Revenue and Taxation Code, which are on file in the office of the San Bernardino County Assessor in the Hall of Records, 172 West Third Street, San Bernardino, California and which are hereby made a part hereof by reference. B. District Name City of Rancho Cucamonga Park and Recreation Improvement District No. PD-85. C. Facilities The existing works within the District boundary are generally described as follows: 1. The maintenance and operation of Heritage Community Park including, but not limited to, grading, planting, irrigation, onsite roads, sidewalks, parking lots, lighting, restrooms, equestrian facilities, playground equipment, picnic facilities, athletic facilities, and walking, jogging and equestrian trails and sanitary sewer connections. 2. The maintenance and operation of Red Hill Community Park including, but not limited to, grading, planting, irrigation, onsite roads, sidewalks, parking lots, lighting, waterscape, restrooms, senior citizens facilities, playground equipment, picnic facilities, major lighted athletic facilities, jogging trail, sanitary sewer connections and onsite drainage inlets. Page 604 of 715 ____________________________________________________________________________ Park and Recreation Improvement District No. PD-85 – City of Rancho Cucamonga 3 Fiscal Year 2023/24 ATTACHMENT 18 ESTIMATE OF WORK The 1972 Act permits carrying forward surpluses or recovering deficits in subsequent fiscal years. Costs for the district will be reviewed annually. Any surplus credited against the assessment or any deficits shall be included in the assessment for the following fiscal year. District Budget Fisc al Year 2023/24 Budget Expe nditure s Pe rsonne l Se rv ice s: Regular Salaries 169,250$ Overtime Salaries 4,600 Fringe Benefits 84,490 Subtotal - Pe rsonne l 258,340 Ope rations and M ainte nance : Operations and Maintenanc e: O & M/General 72,270 O & M/Fac ilities 3,300 Emergenc y Equipm ent and Vehic le Rental 8,500 Equipm ent Operations and Maintenance 3,300 Subtotal - Operations and Maintenanc e 87,370 Contrac t Servic es: Contrac t Services/General 432,830 Contrac t Services/Fac ilities 15,690 Tree Maintenanc e 24,380 Subtotal - Contrac t Services 472,900 Utilities : Telephone Utilities 1,600 W ater Utilities 204,200 Electric Utilities 184,270 Subtotal - Utilities 390,070 Ass ess m ent Adminis tration 99,190 Adm in./General Overhead 65,750 Other Expenses 2,960 Subtotal - Ope rations and M ainte nance 1,118,240 Capital Expe nditure s: Captial Outlay - Improvem ents Other Than Building 479,000 Captial Projec t 800,000 Subtotal - Capital Expe nditure s 1,279,000 T ransfe rs Out: Trans fers Out - PD-85 Capital Res erve Fund 116,800 T otal Expe nditure s Budge t 2,772,380$ Page 605 of 715 ____________________________________________________________________________ Park and Recreation Improvement District No. PD-85 – City of Rancho Cucamonga 4 Fiscal Year 2023/24 ATTACHMENT 18 Fis c al Year 2023/24 Budget Re v e nue s T axe s: Es timated Ass essm ents, Net of Es timated Delinquencies 1,163,810$ Anticipated Prior Year Delinquenc ies Collec tion 13,560 Subtotal - T axe s 1,177,370 Othe r Re v e nue s: Interes t Earnings 43,340 O ther Rental/Lease Inc om e 124,010 Park Maintenance Fees 4,210 Sports Field Us er Group Rentals 110 Sports Lighting Fees 17,270 O ther Revenue 100 Subtotal - Othe r Re v e nue s:189,040 T ransfe r In: Trans fer In - General Fund 32,700 Trans fer In - PD-85 Operating Fund 196,100 Trans fer In - CFD Em pire Lakes 55,350 Subtotal - T ransfe r In:284,150 T otal Re v e nue s Budge t 1,650,560 Contribution to/(Use of) Fund Balance (1,121,820)$ Total Gross Es timated Ass essm ents 1,163,802.00$ Total Dis tric t EBU Count 37,542.00 Ac tual As s ess ment per EBU - Fis cal Year 2023/24 31.00$ Maximum Allowable As s ess m ent per EBU - Fis c al Year 2023/24 31.00$ Each year, prior to the assessments being placed on the tax roll, the City will review the budget and determine the amount needed to maintain the improvements for the upcoming fiscal year. The actual assessment will be based on the estimated costs of maintenance, available fund balance and maximum allowable assessment; however, it may not exceed the maximum unless the increase is approved by the property owners in accordance with Proposition 218. It is the intent of the City to maintain an Operating Reserve which shall not exceed the estimated costs of maintenance and servicing of the improvements prior to December 10 of the fiscal year, or when the City expects to receive its apportionment of special assessments and tax collections from the County of San Bernardino, whichever is later. Beginning with Fiscal Year 2016/17, the City will maintain a Capital Reserve to be used for deferred maintenance and pending capital projects. Page 606 of 715 ____________________________________________________________________________ Park and Recreation Improvement District No. PD-85 – City of Rancho Cucamonga 5 Fiscal Year 2023/24 ATTACHMENT 18 The reserve balance information for the District is as follows: Operating Capital Total Res erve Res erve Reserve Estimated Reserve Fund Balance, June 30, 2023 2,502,692$ 407,429$ 2,910,121$ Contribution to/(Us e of) Res erve - Fisc al Year 2023/24 (1,026,480)(95,340)(1,121,820) Estimated Reserve Fund Balance, June 30, 2024 1,476,212$ 312,089$ 1,788,301$ Definitions of Budget Items The following definitions describe the costs and expenses included in the District Budget: Personnel Services: This item includes the costs attributed to the salaries of all full-time and part-time employees dedicated to maintenance of the District improvements. Additionally, this includes benefits available to City employees. Operations and Maintenance: This item includes the costs of City staff to perform maintenance duties within the boundaries of the District. Contract Services: This item includes the contract costs of a landscape maintenance company responsible for the ongoing maintenance of the District improvements. Utilities: This item includes the costs to furnish electricity, water, and telephone services, as required, for the operation and maintenance of the sprinklers and irrigation controllers in the District. Assessment Administration: This item includes the cost of all particular departments and staff of the City, as well as consultants, for providing the administration, coordination and management of District services, operations, and incidental expenses related to the District. This item also includes creation of an annual Engineer's Report, resolutions and placing the assessment amounts onto the County tax roll each year, along with responding to any public inquiries and future Proposition 218 balloting proceedings. General Overhead: This item includes the costs of all central services departments of the City for providing the coordination of District services, inspections, annual bid management, responding to public concerns, public education, accounting, auditing and procedural matters associated with the District. This item also includes an allocation for general City staff time for administrative functions and systems that provide for a functional and operational District within the City's administrative structure. Capital Outlay: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include new monuments, irrigation systems, and other large improvements. Page 607 of 715 ____________________________________________________________________________ Park and Recreation Improvement District No. PD-85 – City of Rancho Cucamonga 6 Fiscal Year 2023/24 ATTACHMENT 18 Other Revenues: This includes other revenues that are not levied through the annual assessments that support the District operations. These other revenues may include: interest earnings, other rental/lease income (cell site tower leases), Park Maintenance Fees, Sports Field User Group Rentals, and parking permits (Metrolink Station paid parking). METHOD OF SPREAD The 1972 Act indicates that assessments may be apportioned by any formula or method which fairly distributes costs among all lots or parcels within the District in proportion to the estimated benefit received. A. Definitions The District is divided into three categories for the purpose of determining the assessments as follows: CATEGORY A – includes parcels based on the number of existing residential units within certain ranges of parcel size. CATEGORY B – includes all parcels not defined in Category A or Category C CATEGORY C – includes exempt parcels. Exempt parcels are those parcels listed by the County Assessor’s as exempt and/or which have an assessed value of less than $500. B. Formula The assessment formula is based on actual land use information contained in the current San Bernardino Assessor’s computer files and Assessor’s parcel maps. Category A: All parcels containing existing residential dwelling units and meeting the following conditions. Parcel Size/Range Dwelling Units/Parcel Less than 1.5 Acres and 1 or more dwelling units 1.51 to 3.5 Acres and 2 or more dwelling units 3.51 to 7.0 Acres and 4 or more dwelling units 7.01 to 14.0 Acres and 8 or more dwelling units 14.01 to 25 Acres and 15 or more dwelling units 25.01 Acres and larger 26 or more dwelling units Category A is based on the number of existing residential units. Page 608 of 715 ____________________________________________________________________________ Park and Recreation Improvement District No. PD-85 – City of Rancho Cucamonga 7 Fiscal Year 2023/24 ATTACHMENT 18 Category B: All parcels not defined in Category A or Category C. Category C: All exempt parcels as defined below: 1. All properties currently tax exempt; 2. All public ownership; 3. Railroad mainline right-of-ways; 4. Major utility transmission right-of-ways; 5. Mineral rights; 6. Parcels so small they currently cannot be built upon; 7. All normally assessable parcels within an assessed valuation of less than $500 and 1.5 acres or less; and, C. Summary of Preliminary Assessment Amounts Category A: The preliminary estimated assessment rate, which will be levied during the Fiscal Year 2023/24, is $31.00 per residential dwelling unit for those parcels in Category A. Category A parcels containing more than one residential dwelling unit will be assessed for an amount equal to $31.00 times the number of residential dwelling units. Category B: The assessment, which may be levied for parcels within Category B during the Fiscal Year 2023/24, shall be according to the following schedule: Definition Assessment Per Parcels Single Family Residential $31.00 Multi-Family Residential $31.00 Less than 1.5 Acres $15.50 1.51 Acres to 3.50 Acres $46.50 3.51 Acres to 7.0 Acres $108.50 7.01 Acres to 14.0 Acres $217.00 14.01 Acres to 25.0 Acres $434.00 25.01 Acres and larger $775.00 Category C: The assessment shall be $0.00 for Category C parcels. Page 609 of 715 ____________________________________________________________________________ Park and Recreation Improvement District No. PD-85 – City of Rancho Cucamonga 8 Fiscal Year 2023/24 ATTACHMENT 18 Annexations There are no effective annexations for Fiscal Year 2023/24. Boundary Map An Assessment Diagram for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the County Assessor of the County of San Bernardino, at the time this report was prepared, and are incorporated by reference herein and made part of this Engineer’s Report. Page 610 of 715 ____________________________________________________________________________ Park and Recreation Improvement District No. PD-85 – City of Rancho Cucamonga 9 Fiscal Year 2023/24 ATTACHMENT 18 Page 611 of 715 Resolution No. 2023-XXX – Page 1 of 2 ATTACHMENT 19 RESOLUTION NO. 2023-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, CONFIRMING THE DIAGRAMS AND ASSESSMENTS; APPROVING THE ANNUAL ENGINEER’S REPORTS; AND ORDERING THE LEVY AND COLLECTION OF THE ANNUAL ASSESSMENTS WITHIN LANDSCAPE MAINTENANCE DISTRICTS NOS. 1, 2, 3B, 4-R, 6-R, 7, 8, 9 AND 10 FOR FISCAL YEAR 2023/24 WHEREAS, the City Council of the City of Rancho Cucamonga did on the 7th day of June 2023, adopt its Resolution of Intention No. 2023-055 (the "Resolution of Intention") pursuant to the Landscaping and Lighting Act of 1972, as amended (the "1972 Act"), declaring its intention to levy and collect assessments within Landscape Maintenance Districts Nos. 1, 2, 3B, 4-R, 6-R, 7, 8, 9, and 10 (each a "District" and collectively the "Districts") for Fiscal Year 2023/24 and giving notice of the time and place for a public hearing by the City Council on the levy of the proposed assessments within the Districts; and WHEREAS, the City Council previously received and preliminarily approved a report of the Assessment Engineer (each an "Annual Engineer's Report" and collectively the "Annual Engineer's Reports") for each District as required pursuant to Article 4 of Chapter 1 of the 1972 Act, Article XIIID of the Constitution of the State of California (“Article XIIID”) and the Proposition 218 Omnibus Implementation Act (Government Code Section 53750 and following) (the “Implementation Act”) (the 1972 Act, Article XIIID and the Implementation Act are referred to collectively as the “Assessment Law”); and WHEREAS, notice of such public hearing was duly and legally published in the time, form and manner as required by the Assessment Law, shown by the affidavit of Publication of said Resolution of Intention on file in the Office of the City Clerk; and WHEREAS, said City Council having duly received and considered evidence, oral and documentary, concerning the jurisdiction facts in this proceeding and concerning the necessity for the contemplated work and the benefits to be derived therefrom, and said City Council having now acquired jurisdiction to order the proposed work. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, HEREBY RESOLVES, as follows: SECTION 1. This City Council hereby finds and determines that: A. Notice of the public hearing has been given and the proceedings for the consideration of the levy of the annual assessments within each District have been undertaken in accordance with the 1972 Act; and B. The annual assessments for Fiscal Year 2023/24 proposed to be levied within each District as set forth in the applicable Annual Engineer's Report do not exceed the annual assessments as previously authorized to be levied within such District, and therefore, the proposed levy of assessments for Fiscal Year 2023/24 within such District are not deemed to be “increased” over the maximum authorized annual assessments. SECTION 2. The final assessments and diagrams for the proceedings, as contained in the Annual Engineer’s Report for each of the Districts, is hereby approved and confirmed. The assessments for the Districts contained in the Annual Engineer’s Reports for Fiscal Year 2023/24 are hereby levied Page 612 of 715 Resolution No. 2023-XXX – Page 2 of 2 ATTACHMENT 19 upon the respective lots or parcels in the Districts in the amounts as set forth in the applicable Annual Engineer’s Report. SECTION 3. This City Council hereby orders that the work, as set forth and described in the Resolution of Intention, be done and made. SECTION 4. The above-referenced diagram and assessment shall be filed in the Office of the City Clerk. Said diagram and assessment, and the certified copy thereof, shall be open for public inspection. SECTION 5. The City Clerk is hereby ordered and directed to immediately file a certified copy of the diagram and assessment with the County Auditor. Such filing shall be made no later than the 3rd Monday in August 2023. SECTION 6. After the filing of the diagram and assessment, the County Auditor shall enter on the County assessment roll opposite each lot or parcel of land the amount assessed thereupon, as shown in the assessment. SECTION 7. The assessments shall be collected at the same time and in the same manner as County taxes are collected, and all laws providing for the collection and enforcement of County taxes shall apply to the collection and enforcement of the assessments. SECTION 8. The assessments as above confirmed and levied for these proceedings will provide revenue and relate to the fiscal year commencing July 1, 2023 and ending June 30, 2024. PASSED, APPROVED, AND ADOPTED this ________ day of ______________ 2023. Page 613 of 715 Resolution No. 2023-XXX – Page 1 of 2 ATTACHMENT 20 RESOLUTION NO. 2023-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, CONFIRMING THE DIAGRAMS AND THE ASSESSMENTS; APPROVING THE ANNUAL ENGINEER’S REPORTS; AND ORDERING THE LEVY AND COLLECTION OF THE ANNUAL ASSESSMENTS WITHIN STREET LIGHTING MAINTENANCE DISTRICTS NOS. 1, 2, 3, 4, 5, 6, 7 AND 8, FOR FISCAL YEAR 2023/24 WHEREAS, the City Council of the City of Rancho Cucamonga did on the 7th day of June 2023, adopt its Resolution of Intention No. 2023-058 (the "Resolution of Intention") pursuant to the Landscaping and Lighting Act of 1972, as amended (the "1972 Act"), declaring its intention to levy and collect assessments within Street Lighting Maintenance Districts Nos. 1, 2, 3, 4, 5, 6, 7 and 8 (each a "District" and collectively the "Districts") for Fiscal Year 2023/24 and giving notice of the time and place for a public hearing by the City Council on the levy of the proposed assessments within the Districts; and WHEREAS, the City Council previously received and preliminarily approved a report of the Assessment Engineer (each an "Annual Engineer’s Report" and collectively the "Annual Engineer’s Reports") for each District as required pursuant to Article 4 of Chapter 1 of the 1972 Act, Article XIIID of the Constitution of the State of California (“Article XIIID”) and the Proposition 218 Omnibus Implementation Act (Government Code Section 53750 and following) (the “Implementation Act”) (the 1972 Act, Article XIIID and the Implementation Act are referred to collectively as the “Assessment Law”); and WHEREAS, notice of such public hearing was duly and legally published in the time, form and manner as required by the Assessment Law, shown by the affidavit of Publication of said Resolution of Intention on file in the Office of the City Clerk; and WHEREAS, said City Council having duly received and considered evidence, oral and documentary, concerning the jurisdiction facts in this proceeding and concerning the necessity for the contemplated work and the benefits to be derived therefrom and said City Council having now acquired jurisdiction to order the proposed work. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, HEREBY RESOLVES, as follows: SECTION 1. This City Council hereby finds and determines that: A. Notice of the public hearing has been given and the proceedings for the consideration of the levy of the annual assessments within each District have been undertaken in accordance with the 1972 Act; and B. The annual assessments for Fiscal Year 2023/24 proposed to be levied within each District as set forth in the applicable Annual Engineer's Report do not exceed the annual assessments as previously authorized to be levied within such District, and therefore, the proposed levy of assessments for Fiscal Year 2023/24 within such District are not deemed to be “increased” over the maximum authorized annual assessments. SECTION 2. The final assessments and diagrams for the proceedings, as contained in the Annual Engineer’s Report for each of the Districts, is hereby approved and confirmed. The assessments for the Districts contained in the Annual Engineer’s Reports for Fiscal Year 2023/24 are hereby levied upon the respective lots or parcels in the Districts in the amounts as set forth in the applicable Annual Page 614 of 715 Resolution No. 2023-XXX – Page 2 of 2 ATTACHMENT 20 Engineer’s Report. SECTION 3. This City Council hereby orders that the work, as set forth and described in the Resolution of Intention, be done and made. SECTION 4. The above-referenced diagram and assessment shall be filed in the Office of the City Clerk. Said diagram and assessment, and the certified copy thereof, shall be open for public inspection. SECTION 5. The City Clerk is hereby ordered and directed to immediately file a certified copy of the diagram and assessment with the County Auditor. Such filing shall be made no later than the 3rd Monday in August 2023. SECTION 6. After the filing of the diagram and assessment, the County Auditor shall enter on the County assessment roll opposite each lot or parcel of land the amount assessed thereupon, as shown in the assessment. SECTION 7. The assessments shall be collected at the same time and in the same manner as County taxes are collected, and all laws providing for the collection and enforcement of County taxes shall apply to the collection and enforcement of the assessments. SECTION 8. The assessments as above confirmed and levied for these proceedings will provide revenue and relate to the fiscal year commencing July 1, 2023 and ending June 30, 2024. PASSED, APPROVED, AND ADOPTED this ________ day of ____________ 2023. Page 615 of 715 Resolution No. 2023-XXX – Page 1 of 2 ATTACHMENT 21 RESOLUTION NO. 2023-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, CONFIRMING THE DIAGRAM AND ASSESSMENT; APPROVING THE ANNUAL ENGINEER’S REPORT; AND ORDERING THE LEVY AND COLLECTION OF ASSESSMENTS WITHIN PARK AND RECREATION IMPROVEMENT DISTRICT NO. PD-85 FOR FISCAL YEAR 2023/24 WHEREAS, the City Council of the City of Rancho Cucamonga did on the 7th day of June 2023, adopt its Resolution of Intention No. 2023-061 (the "Resolution of Intention") pursuant to the Landscaping and Lighting Act of 1972, as amended (the "1972 Act"), declaring its intention to levy and collect assessments within Park and Recreation Improvement District No. PD-85 (the “District”) for Fiscal Year 2023/24 and giving notice of the time and place for a public hearing by the City Council on the levy of the proposed assessments within the Districts; and WHEREAS, the City Council previously received and preliminarily approved a report of the Assessment Engineer as required by the 1972 Act; and WHEREAS, notice of such public hearing was duly and legally published in the time, form and manner as required by law, shown by the affidavit of Publication of said Resolution of Intention on file in the Office of the City Clerk; and WHEREAS, said City Council having duly received and considered evidence, oral and documentary, concerning the jurisdiction facts in this proceeding and concerning the necessity for the contemplated work and the benefits to be derived therefrom, and said City Council having now acquired jurisdiction to order the proposed work. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, HEREBY RESOLVES, as follows: SECTION 1: This City Council hereby finds and determines that notice of the public hearing has been given and the proceedings for the consideration of the levy of the annual assessments within the District have been undertaken in accordance with the 1972 Act. SECTION 2: The final assessments and diagram for the proceedings, as contained in the final Annual Engineer’s Report for the District, are hereby approved and confirmed. The assessments for the District contained in the Annual Engineer’s Report for Fiscal Year 2023/24 are hereby confirmed and levied upon the respective lots or parcels in the District in the amounts as set forth in applicable Annual Engineer’s Report. SECTION 3: This City Council finds and determines that the public interest and convenience requires the levy and collection of assessments within the District for Fiscal Year 2023/24, and said City Council hereby orders that the work, as set forth and described in said Resolution of Intention be done and made. SECTION 4: The above-referenced diagram and assessment shall be filed in the Office of the City Clerk. Said diagram and assessment, and the certified copy thereof, shall be open for public inspection. SECTION 5: The City Clerk is hereby ordered and directed to immediately file a certified copy of the diagram and assessment with the County Auditor. Said filing is to be made no later than the 3rd Monday in August 2023. Page 616 of 715 Resolution No. 2023-XXX – Page 2 of 2 ATTACHMENT 21 SECTION 6: After the filing of the diagram and assessment, the County Auditor shall enter on the County assessment roll opposite each lot or parcel of land the amount assessed thereupon, as shown in the assessment. SECTION 7: The assessments shall be collected at the same time and in the same manner as County taxes are collected, and all laws providing for the collection and enforcement of County taxes shall apply to the collection and enforcement of the assessments. SECTION 8: The assessments as above confirmed and levied for these proceedings will provide revenue and relate to the fiscal year commencing July 1, 2023 and ending June 30, 2024. PASSED, APPROVED, AND ADOPTED this ________ day of _____________ 2023. Page 617 of 715 DATE:July 19, 2023 TO:President and Members of the Board of Directors FROM:John R. Gillison, City Manager INITIATED BY:Mike McCliman, Fire Chief Tamara L. Oatman, Finance Director Darci Vogel, Fire Business Manager Michelle Cowles, Management Analyst II SUBJECT:Public Hearing for Consideration of a Resolution Adopting the Fire District's General Fund Final Budget for Fiscal Year 2023-24. (RESOLUTION NO. FD 2023-034) (FIRE) RECOMMENDATION: Staff recommends the Fire Board approve a Resolution adopting the General Fund Final Budget for FY 2023-24 in the amount of $51,263,990, which is a combination of $42,827,150 General Fund operational expenditures and $8,436,840 Fire Protection Capital Fund expenditures. BACKGROUND: The Health and Safety Code, commencing with Section 13890 et seq, requires that Fire Protection District: 1. Adopt a preliminary budget; 2. Publish a notice regarding a public hearing for final budget adoption; and 3. Adopt its final budget on or before October 1st of each year. ANALYSIS: In compliance with the above requirements, the Fire Board of Directors has: 1. Conducted a public budget workshop on June 15, 2023, and adopted the preliminary budget on June 22, 2023; 2. Published on two (2) occasions in the Inland Valley Daily Bulletin notices regarding the public hearing for consideration of final budget adoption; and 3. Submitted a proposed resolution adopting the General Fund Final Budget during the Board meeting scheduled for July 19, 2023. The preliminary budget has been available for public inspection in accordance with the Health and Safety Code. FISCAL IMPACT: The actions taken by the Fire Board will establish the Rancho Cucamonga Fire Protection District's final spending plan for Fiscal Year 2023-24. Page 618 of 715 Page 2 1 9 3 3 COUNCIL MISSION / VISION / GOAL(S) ADDRESSED: This item brings together portions of the Council's vision and core values. Delivering vital fire and life safety services to residents, visitors, and businesses through an innovative combination of risk reduction and emergency response programs promotes and enhances a safe and healthy community for all. ATTACHMENTS: Attachment 1 - Resolution No. FD 2023-034, General Fund Final Budget FY 2023-24 Page 619 of 715 Resolution No. FD 23-xxx – Page 1 of 1 ATTACHMENT 1 RESOLUTION NO. FD 2023-XXX A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ADOPTING A FINAL BUDGET FOR THE FISCAL YEAR JULY 1, 2023 THROUGH JUNE 30, 2024 WHEREAS, the Board of Directors of the Rancho Cucamonga Fire Protection District adopted its General Fund Preliminary Budget on June 22, 2023, and made said preliminary budget available for inspection by interested taxpayers; and WHEREAS, the Board of Directors noticed a time and place for a public hearing regarding the preliminary budget; and WHEREAS, the Board of Directors of the Rancho Cucamonga Fire Protection District conducted said hearing in accordance with requirements set forth in the Health and Safety Code of the State of California. NOW, THEREFORE, the BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT HEREBY RESOLVES to adopt the General Fund Final Budget for the District for Fiscal Year 2023/24 in the amount of $51,263,990, which is a combination of $42,827,150 General Fund operational expenditures and $8,436,840 Fire Protection Capital Fund expenditures. The General Fund's Final Budget is on file in the office of the Finance Director. PASSED, APPROVED, and ADOPTED this 19th day of July 2023. Page 620 of 715 DATE:July 19, 2023 TO:Mayor and Members of the City Council FROM:John R. Gillison, City Manager INITIATED BY:Matt Burris, AICP, LEED AP, Deputy City Manager – Community & Economic Development Matt Marquez, Planning & Economic Development Director SUBJECT:Presentation from Empire Economics Inc. on the City’s Annual Employment and Housing Trends Study and Analysis of the Current and Future State of Warehousing and Distribution. (CITY) ____________________________________________________________________________ RECOMMENDATION: Staff recommends that the City Council receive a presentation from Dr. Joe Janczyk of Empire Economics Inc. on the City’s Annual Employment and Housing Trends Study and Analysis of the current and future state of Warehousing and Distribution. BACKGROUND: Over the years the City has worked with Empire Economics to develop an annual forecast of Rancho Cucamonga’s economic and housing growth and conditions. Additionally, supplemental analysis of items such as high-speed rail was prepared on an as needed basis. Factors impacting the City’s economy and housing market change regularly, and there is a need to understand the reasons behind these changes and the impacts they have on the community. On February 15, 2023, the City Council approved a professional services agreement with Empire Economics for the main purpose of continuing to prepare these annual studies. The agreement approved by Council covers a three-year period. This year, Empire was tasked with not only producing an Employment and Housing Trends Study, but also an analysis of the Current and Future State of Warehousing and Distribution. The Empire team has completed their work and will now be presenting their findings to the City Council. ANALYSIS: As the City continues to grow and evolve, understanding changes to its economy and housing market remain key for future planning efforts. Listed below are the information categories covered in this year’s Employment and Housing Trends Study, along with key information or findings for each category: 1. Overview of the Federal Reserve Board’s (FRB) Inflation Policy: The study’s forecasting is based on the impacts of the FRB goal for inflation of 2%. Near term restrictive policies will/have result in significantly higher mortgage rates as well as higher unemployment rates. Additionally, stabilization policies once desired inflation rate is attained will result in lower financial interest rates. Therefore, although the short-term impacts of federal policies will adversely impact employment as well as the housing Page 621 of 715 1 9 3 1 market, the eventual result will generally be lower interest rates that will allow for a return to normal growth conditions. 2. Expected Impacts on the Economy/Employment: The City’s economy has recovered from the impacts of the Covid 19 pandemic. Certain sectors performed better than others as the economy has evolved and reshaped itself. Among the relatively strong sectors, administrative and support is much higher than pre-Covid 19 conditions. Policies at the federal level will continue to impact the City’s economy over the next several years and cause even more restructuring. It is anticipated that the real estate and finance sectors will be impacted due higher mortgage and interest rates overall. Additionally, employment growth was roughly 4,100 in 2021 and 5,200 in 2022, which was a new peak level. It is anticipated that future employment growth between 2023 and 2027 will be roughly 1,200 to 2,200 per year. 3. Expected Impacts on the Housing Market: Near term policies at the Federal level have significantly increased mortgage rate and this recent surge has significantly increased mortgage payments. For example, with a 30-year fixed rate for a mortgage loan of $800,000: •For a 2.9% mortgage rate, the mortgage interest on the loan would be about $400,000. •For a mortgage rate of 6.9% (recent peak level), mortgage interest on the loan exceeds $1,000,000. While homeowners have recently purchased or refinanced their mortgage loans at historically low rates, they have become reluctant to purchase another home with a much higher new mortgage rate. For example, 72% of homebuyers in in the county have a mortgage rate that is 4% or less. Many who are trying to purchase new homes will likely have a much higher mortgage rate than their existing homes and will also need to find a buyer for their current home who will be able to afford a higher mortgage rate. Eventually, when inflation lowers, mortgage rates will decline, and a more normal housing market should return. 4. Market Conditions for New Residential For-Sale and Apartment Units: The housing stock in Rancho Cucamonga has recently undergone a significant shift from primarily for- sale homes to multi-family apartment rentals. With regards to new for-sale homes, there were 17 projects with 1,105 homes in 2020 that were on the marketplace, and now these are all currently closed-out, occupied by homeowners. The sales rate in the City has almost doubled from 2021 from 308 to 578 homes. Furthermore, although there are several major projects in the planning process, these have not yet come onto the marketplace. These include several apartment-style projects which account for over 1,500 additional units. Again, these projects are in various stages of the development process and are in high demand. Rental rates in the City continue to increase. From 2015 until now, rents have increased from $1,709 to $2,711 which represents a level that has been consistently above those for San Bernardino County as a whole. As discussed earlier in this report, in previous years the City has asked Empire Economics to conduct additional or supplemental analysis of other items impacting the local economy and/or housing market. This year, staff requested that they prepare an analysis of the Current and Future State of Warehousing and Distribution. Listed below are the information categories covered in this analysis, along with key findings for each category: Page 622 of 715 1 9 3 1 1. Demand for Warehousing/Distribution Centers in the Inland Empire: Currently 40% of the nations imports from Asia are processed through the ports and then go into the Inland Empire and beyond. The combination of imports and transportation systems support the robust development of warehouse/distribution centers in the Inland Empire. Within the Inland Empire, Rancho Cucamonga has a preferred location due to its proximity to the ports, closer proximity to existing highways and rail lines, and closer proximity to major population areas. Employment growth for these uses has been robust, even with advancement in automation. The need for workers in this field is expected to still outpace other segments until 2028. The total square footage for new warehouse/distribution in the Inland Empire has increased from 423 million in 2008 to 630 million in 2022. The average building size is 840,000 with some of the larger buildings in the 4 million square foot range. Buildings on average are trending toward larger sizes, but despite fewer worker per square foot, the larger buildings coupled with increased demand require more workers overall. The demand for this type of space is expected to increase from 630 million square feet in 2022 to 806 million square feet in 2040. 2. Demand for Warehouse/Distribution Centers in Rancho Cucamonga: The share of Warehouse/Distribution employment increased from 4.3% in 2010 to a peak level of 6.4% in 2018. Since then, the share has decreased to about 5.0% during 2020-2022. The decline can be attributed to new automation being built into new buildings and implemented into older existing ones, as well as a stronger growth in various non- warehouse/distribution sectors such as healthcare. The average salaries of the warehouse/distribution workers in the city of $54,826 are slightly below the average wages for the City as a whole of $56,261. Based upon the average salary level for warehouse/distribution workers, they would not likely be able to purchase a for-sale home in the city. While some workers may choose to rent an apartment in the city, most would likely choose to live in another Inland Empire city that would have lower housing costs. The near-term warehouse/distribution projects that are currently under construction or in the planning process have an estimated 4,500,000 square feet. The term absorption utilized in Empire’s report (see attached) means that the space is fully constructed and is being utilized for operations by a firm. Empire estimates that absorption will commence in latter 2023, followed by significant levels of absorption in 2024 and 2025, with the balance in 2026. Empire estimated the amount of employment that the projects in the planning process will generate about 2,833 new jobs. The jobs created by the operation of firms in warehouse/distribution follows a similar pattern to their absorption. New job creation starts in 2023, with expected peak levels in 2024 and 2025, followed by the remaining in 2026. 3. Benefits/Cost Analysis of Warehouse/Distribution: The labor market will be fully recovered with over 300,000 new jobs being created in the Inland Empire, which exceeds the jobs lost due to the pandemic, including significant losses in the warehouse/distribution sector. Both the Inland Empire’s work force and wage numbers have grown over the last two years at a rate greater than the State of California. Warehouse space in the Inland Empire has a vacancy rate of 1.4% and is more expensive that similar space in Orange and San Diego counties. These are all positive factors for the warehouse and distribution market in the Inland Empire. Alternatively, there is a risk for a reduction in future growth Page 623 of 715 1 9 3 1 due to automation. Per the Institute of Spatial Economics, 75% of jobs in the logistics industry could be at risk. Pollution associated with these uses continues to remain a concern, as do health risks to those who live in close proximity. Additionally, traffic and noise impacts are not anticipated to lessen. 4. Comparison of the Benefit/Costs for Potential Land Uses: Rancho Cucamonga’s industrial economic and employee base is well established in the southern portion of the City. This area has characteristics that provide for support for future warehouse/distribution development, including established industrial buildings, easy access to freeways, and large parcels that can accommodate large warehouse/distribution buildings. While there is potential for the development of other land use types, such as office or retail, their development potential is currently not as favorable as warehouse/industrial as measured by economic metrics. For example, vacant rates for warehouse/distribution are significantly lower (less than 2%) that the retail and office sectors (6.5% and 5.3%). Rental rates are also less for warehouse/distribution in comparison to other land use types. The warehouse/distribution sector will continue to remain stable, despite the risks associated with this development type (traffic, pollution, etc.), due the City and Inland Empire’s location, workforce, lower costs, and other factors outlined in Empire’s reports. In conclusion, Federal policies will continue to drive mortgage rates and unemployment. More short-term rate hikes are expected. The market for existing homes expects to remain sluggish through 2024. Home sales will also remain low due to current homeowners having historically low mortgage rates. New residential development activity in the city remains primarily apartments. Lastly, warehouse/distribution remains a primary growth factor in the area, but with minimal economic benefits. In the City, the potential new warehouse/distribution development is significant (4 million square feet), but the economic benefits are minimal. FISCAL IMPACT: There is no fiscal impact associated with this presentation to the City Council. The cost for the 2023 annual forecast and supplemental analysis of warehouse and distribution centers was budgeted for in Fiscal Year 2022-2023. Funding came from General Fund- Non-Departmental General / Contract Services 1001001-5300. Funding for work in the following years will be requested as part of the annual budget process. COUNCIL MISSION / VISION / GOAL(S) ADDRESSED: This item addresses the City Council’s Core Values of “Intentionally embracing and anticipating the future”, and “Equitable prosperity for all” by ensuring that Rancho Cucamonga’s vibrant economy ensures prosperity and opportunities now and in the future. ATTACHMENTS (1): Attachment 1 – Employment and Housing Trends Study Attachment 2 – Analysis of the Current and Future State of Warehousing and Distribution Page 624 of 715 1CITY OF RANCHO CUCAMONGARECENT/EXPECTED EMPLOYMENT/HOUSING TRENDS/PATTERNSIMPACTS OF THE FEDERAL RESERVE GOAL OF 2% INFLATIONPREPAREDBY EMPIRE ECONOMICS, INC.JOSEPH T. JANCZYK, PH.D.APRIL 17, 2023(JUNE 2023 – UPDATES TO FED POLICIES AND EMPLOYMENT)ATTACHMENT 1Page 625 of 715 TABLE OF CONTENTS PREVIEW: KEY QUESTIONS FOR RANCHO CUCAMONGA……….………..............................................3EMPIRICAL FOUNDATION: DATA COMPILED SPECIFICALLY FOR RANCHO CUCAMONGA.......4I. OVERVIEW OF THE FEDERAL RESERVE BOARD (FRB) GOAL OF 2% INFLATION…………........5II. EXPECTED IMPACTS ON THE ECONOMY/EMPLOYMENT…………………………………………..9III. EXPECTED IMPACTS ON THE HOUSING MARKET……………………………………………….…19IV. MARKET CONDITIONS FOR NEW RESIDENTIAL FOR-SALE AND APARTMENT UNITS…......27CREDENTIAL/QUALIFICATIONS OF EMPIRE ECONOMICS…………….……………….……….…….362Page 626 of 715 PREVIEW: KEY QUESTIONS FOR RANCHO CUCAMONGA FED POLICY AND COVID-19 IMPACTS: •HOW LONG WILL IT TAKE THE FEDERAL RESERVE BOARD TO ATTAIN ITS GOAL OF 2% INFLATION?•HOW WILL THE FED POLICIES IMPACT INTEREST RATES AND UNEMPLOYMENT?•HOW HAS THE COMPOSITION OF THE RANCHO CUCAMONGA ECONOMY CHANGE DUE TO COVID-19?•WHAT ADDITIONAL SHIFTS CAN BE EXPECTED FROM THE FEDERAL RESERVE BOARD POLICIES?HOUSING PAYMENT, INVENTORY AND PRICE OUTLOOK: •HOW HAVE ANNUAL HOUSING PAYMENTS FOR NEW HOMEOWNERS CHANGED FROM WHEN MORTGAGE RATES WERE ATHISTORICALLY LOW LEVELS TO THE CURRENTLY HIGHER RATES?•HOW IS HOUSING INVENTORY IMPACTED BY EXISTING HOMEOWNERS NOT MOVING DUE TO HIGHER RATES?•HOW MUCH MIGHT PRICES NEED TO DECLINE FOR THE MARKET TO RETURN TO NORMAL?LOCAL HOUSING TYPE SHIFT AND ABSORPTION: •THE HOUSING MARKET HAS SHIFTED FROM NEW FOR-SALE PROJECTS TO NEW MULTIFAMILY APARTMENT RENTALS.•HOW LONG WILL IT TAKE THE FORTHCOMING NEW APARTMENT UNITS TO BE ABSORBED IN THE MARKETPLACE?3Page 627 of 715 EMPIRICAL FOUNDATION: SPECIFIC DATA FOR RANCHO CUCAMONGA*PRIMARY DATA COMPILED BY EMPIRE ECONOMICS SPECIFICALLY FOR THE CITY*A. EMPLOYMENT AND PAYROLL DATA SPECIFICALLY FOR THE CITYEMPLOYMENT BY FIRMS IN CITY AND HOUSEHOLDS EMPLOYED IN THE CITYFOR EACH ECONOMIC SECTOR, TOTAL EMPLOYMENT, SHARES AND RECENT CHANGESFOR EACH ECONOMIC SECTOR, PAYROLL LEVELS AND RECENT CHANGES B. REAL PROPERTY FILES: SALES OF HOMES IN THE CITYNUMBER OF EXISTING/NEW HOMES SOLD DURING JAN. 2000 THROUGH 2022: ~52,500 CHARACTERISTICS FOR EACH HOME SOLD*PRODUCT TYPE * DATE OF SALE * PRODUCT TYPE * SALES PRICE * LIVING AREAINVENTORY AND PENDING LISTING LEVELS C. MARKET SURVEYS OF ACTIVE RESIDENTIAL FOR-SALES AND APARTMENT PROJECTS IN THE CITYMARKETING STATUS: HOMES CLOSED AND FUTURE SALES AS WELL AS RENTALS* SALES PRICES * INCENTIVES * LIVING AREAS * SPECIAL TAXESD. SITE VISITS FOR FORTHCOMING PROJECTS IN THE CITYCURRENT DEVELOPMENT CONDITION OF THE PROPERTIESSTATUS OF DEVELOPMENT APPROVALS – CITY PLANNING DEPARTMENT 4Page 628 of 715 I. OVERVIEW OF THE FEDERAL RESERVE BOARD (FRB) GOAL OF 2% INFLATIONEMPIRE ECONOMICS (EMPIRE) ANNUAL ECONOMIC AND HOUSING MARKET STUDY FOR FORECASTING RANCHO CUCAMONGA’S EMPLOYMENT AND HOUSING IS BASED UPON THE IMPACTS OF THE FEDERAL RESERVE BOARD (FRB/FED) GOAL OF 2% INFLATION.TO IDENTIFY AND QUANTIFY THE IMPACTS OF THE FED’S POLICIES, EMPIRE COMPILED PRIMARY DATA SPECIFICALLY FOR RANCHO CUCAMONGA (RC) WHICH INCLUDES EMPLOYMENT BY SECTOR AS WELL AS RECENT HOUSING SALES ALONG WITH THE CHARACTERISTICS OF THE MORTGAGES UTILIZED BY THESE HOUSEHOLDS. EMPIRE FORMULATED A MACROECONOMIC MODEL SPECIFICALLY FOR RANCHO CUCAMONGA THAT IS UTILIZED TO FORECAST THE IMPACTS OF THE FED’S POLICY OF ATTAINING A 2% INFLATION RATE.* NEAR-TERM FED RESTRICTIVE POLICIES HAVE/WILL RESULT IN SIGNIFICANTLY HIGHER MORTGAGE RATES AS WELL AS A HIGHER UNEMPLOYMENT RATE.* INTERMEDIATE-TERM FED STABILIZATION POLICIES ONCE THE 2% INFLATION RATE IS ATTAINED WILL RESULT IN LOWER FINANCIAL INTEREST RATES.THEREFORE, ALTHOUGH THE SHORT RUN IMPACTS OF THE FED POLICY ADVERSELY IMPACT THE EMPLOYMENT AS WELL AS THE HOUSING MARKET, THE EVENTUAL RETURN TO AN INFLATION RATE OF 2% WILL RESULT IN GENERALLY LOWER INTEREST RATES THAT WILL ENABLE THE ECONOMY AND HOUSING MARKET TO RETURN TO NORMAL GROWTH CONDITIONS.5Page 629 of 715 6•CONSUMER PRICE INDEX (CPI)MEASURES THE CHANGE IN THE PRICE OFAFIXED BASKET OF GOODS AND SERVICES.•THE FRB TARGET OF 2.0% INFLATION UTILIZES THE PERSONAL CONSUMPTION EXPENDITURE PRICE INDEX (PCE-PI)WHICH CAPTURES A CHANGING BASKET OF GOODSAND SERVICES, REFLECTING CONSUMER BEHAVIOR TO PRICE CHANGES.RECENT TRENDS/PATTERNS FOR INFLATION RATES2021-Q1 2021-Q2 2021-Q3 2021-Q4 2022-Jan. 2022-Feb. 2022-Mar. 2022-Apr. 2022-May 2022-June 2022-July 2022-Aug. 2022-Sept. 2022-Oct. 2022-Nov. 2022-Dec. 2023- Jan. 2023-Feb. 2023-Mar. 2023-Apr. 2023-May.INFLATION INDEX - YEAR OVER YEAR CHANGE BY QUARTER AND MONTHLYPage 630 of 715 7CURRENT FRB MONETARY POLICIES EXPECTED TO REDUCECORE INFLATION TO THE 2% GOAL BY 4THQTR. 2025SOURCE: FEDERAL OPEN MARKET COMMITTEE, ECONOMIC PROJECTIONS, JUNE 14, 2023TABLE 1 MEDIAN Page 631 of 715 8FEDERAL FUNDS RATE EXPECTED TO PEAK IN 2023-4THQTR.UNEMPLOYMENT RATE EXPECTED TO PEAK AT ABOUT 4.5% 2024-4TH– 2025-4THQTRSOURCE: FEDERAL OPEN MARKET COMMITTEE, ECONOMIC PROJECTIONS, JUNE 14, 2023TABLE 1 MEDIAN BUT NOT A SMOOTH PATH•JEROME POWELL STATED THAT THERE WAS FAVORABLE PROGRESS IN JANUARY 2023•SHORTLY THEREAFTER: UNEXPECTED JOB SURGE (+517,000) & UNEMPLOYMENT 3.4%, A 53 YR. LOW•BUT FOR MARCH 2023, JOB GROWTH WAS LOWER (+236,000) AND UNEMPLOYMENT ROSE SLIGHTLY TO 3.5%0.3%4.4%5.6%4.6%3.4%2.5%0%1%2%3%4%5%6%PROBABLE - FED RATEPage 632 of 715 II. EXPECTED IMPACTS ON THE ECONOMY/EMPLOYMENTTHE CITY’S ECONOMY HAS RECENTLY RECOVERED FROM THE IMPACTS OF COVID, AND THIS HAS RESULTED IN A RESTRUCTURING OF THE ECONOMIC SECTORS:AMONG THE RELATIVELY STRONG SECTORS, ADMINISTRATIVE/SUPPORT IS MUCH HIGHER THAN PRE-COVIDAMONG THE RELATIVELY WEAK SECTORS, MANUFACTURING IS MUCH LOWER THAN PRE-COVIDTHE FED’S POLICIES WILL HAVE ANOTHER RESTRUCTURING IMPACT DURING THE NEXT SEVERAL YEARS, WITH THE SECTORS THAT ARE EXPECTED TO BE MOST IMPACTED, SUCH AS: REAL ESTATE DUE TO SIGNIFICANTLY HIGHER MORTGAGE RATESFINANCE DUE TO HIGHER INTEREST RATES OVERALLACCORDINGLY, BASED UPON THE COMPOSITION OF THE CITY’S ECONOMIC BASE, EMPIRE IDENTIFIES THE DEGREE TO WHICH SPECIFIC SECTORS WILL BE IMPACTED ALONG THEIR IMPACTS ON THE AGGREGATE LEVELS OF EMPLOYMENT:POTENTIAL CHANGES IN THE LEVELS OF EMPLOYMENT BY SECTORSFORECASTS OF AGGREGATE EMPLOYMENT CHANGES, ANNUALLY9Page 633 of 715 10RECENT EMPLOYMENT TRENDS BY VARIOUS GEOGRAPHIC AREAS •SINCE MARCH 2020, COVID-19 HAS DRAMATICALLY IMPACTED THE ECONOMY/EMPLOYMENT IN UNIQUE WAYS•APRIL 2020: EMPLOYMENTDECLINED SIGNIFICANTLY, BY -18% FOR THE CITY•SINCE MAY 2020, EMPLOYMENT STARTED TO RECOVER,SURPASSING ITS PRE-COVID LEVELS IN NOVEMBER 2021•AS OF MAY 2023, THE CITY ISABOUT +3%ABOVEITS PRE-COVID LEVELS•THE CITY’S RATE OF RECOVERY HAS BEEN GENERALLYBETWEEN RIV-SB (HIGHER END)AND CALIFORNIA(LOWER END) Jan.-Feb. 2020 20-Apr 20-Jun 20-Aug 20-Oct 20-Dec 21-Feb 21-Apr 21-Jun 21-Aug 21-Oct Dec-21 Feb-22 Apr-22 Jun-22 Aug-22 Oct-22 Dec-22 Feb-23 Apr-23 % TOTAL NONFARM EMPLOYMENT VS. PRE-COVID LEVELS (JAN.-FEB. 2020)Page 634 of 715 UNEMPLOYMENT RATES: HISTORICALLY AND RECENTLYUNEMPLOYMENT RATES BY GEOGRAPHIES(MAY 2023)•RANCHO CUCAMONGA HAD AN UNEMPLOYMENT RATE (3.1%)BELOW THAT OF BOTH SAN BERNARDINO COUNTY (4.3%)AND THE UNITED STATES (3.7%)•THE CITY’S RELATIVELY LOW UNEMPLOYMENT RATE REDUCES THE SUPPLY OF ITS AVAILABLE WORKERS 11RANCHO CUCAMONGA MONTHLY UNEMPLOYMENT RATES (JANUARY 2010 – MAY 2023)•CITY’S RATE DECLINED FROM 10% IN 2010 TO 2,6% IN DEC. 2019•COVID-19 CAUSED THE RATE TO RISE TO 12.9% IN MAY 2020•AS THE ECONOMY RECOVERED, THE RATE WAS 2.6% IN MAY 2022•MOST RECENTLY, THE RATE WAS 3.1% IN MAY 20232010-Jan2010-Jul2011-Jan2011-Jul2012-Jan2012-Jul2013-Jan2013-Jul2014-Jan2014-Jul2015-Jan2015-Jul2016-Jan2016-Jul2017-Jan2017-Jul2018-Jan2018-Jul2019-Jan2019-Jul2020-Jan2020-Jul2021-Jan2021-Jul2022-Jan2022-July2023-JanPage 635 of 715 12COMPOSITION OF RANCHO CUCAMONGA EMPLOYMENT BY SECTOR•25.5% OF JOBS ARE IN TWO LARGEST SECTORS: ADMINISTRATIVE SUPPORT SERVICES AND RESTAURANT/HOTELS•ANOTHER 31.9% OF JOBS: GOVERNMENT, RETAIL TRADE, AND MANUFACTURING Page 636 of 715 13RANCHO CUCAMONGA EMPLOYMENT BY SECTORS: COVID RESTRUCTURING IMPACTS(2022 VS. 2019 PRE-COVID)•SECTORS WITH BIGGEST JOB ADDITIONS 2022 VS. 2019:ADMINISTRATIVE SUPPORT ~ +1,200 AND WHOLESALE TRADE ~ +800 •SECTORS WITH BIGGEST JOB LOSES 2022 VS. 2019: MANUFACTURING ~ -1,400 AND RETAIL TRADE ~ -500Page 637 of 715 14RANCHO CUCAMONGA EMPLOYMENT BY SECTORS – 2022 SALARIES•OVERALL AVERAGE SALARY FOR 2022: $56,261 •HIGHEST PAYING SECTORS: FINANCE AND INSURANCE, CONSTRUCTION, MANUFACTURING, WHOLESALE TRADE•LOWEST PAYING SECTORS: RESTAURANT/HOTELS, EDUCATIONAL SERVICES, RETAIL, ADMINISTRATIVE SUPPORTPage 638 of 715 RANCHO CUCAMONGA VS. CALIFORNIA: EMPLOYMENT RECOVERY BY SECTORSOVERALL, RANCHO CUCAMONGA AGGREGATE TOTAL NONFARM EMPLOYMENT IS ABOVE PRE-COVID-19 PEAK15DEC. 2022 RANCHO CUCAMONGA SECTORSAHEADOF CALIFORNIA•INFORMATION•ADMINISTRATIVE•PROFESSIONAL•EDUCATION •REAL ESTATE•ACCOMMODATION AND FOOD SERVICE•HEALTHCARE •WHOLESALE TRADE•GOVERNMENT DEC. 2022 RANCHO CUCAMONGA SECTORSBEHIND CALIFORNIA•TRANSPORTATION AND WAREHOUSING•RETAIL TRADE•FINANCE / INSURANCE•OTHER SERVICES •CONSTRUCTION•ARTS, ENTERTAINMENT, RECREATION •MANUFACTURING •MANAGEMENTPage 639 of 715 RANCHO CUCAMONGA - RECENT AND FORECASTED AGGREGATE LEVELS OF EMPLOYMENT(2000-2022 RECENT & 2023-2027 FORECAST)•TOTAL EMPLOYMENT BY FIRMS LOCATED IN RANCHO CUCAMONGA DECLINED BY SOME -6,400 FROM 2019 TO 2020 •EMPLOYMENT INCREASED BY ~4,100 IN 2021 AND IN 2022 BY ~5,200, EXCEEDING ITS PRE-COVID LEVEL•DURING 2023-2027, EMPLOYMENT AMONG THE VARIOUS SECTORS IS EXPECTED TO CONTINUE TO RISEADDITIONALLY, ANOTHER ~2,800 JOBS ARE EXPECTED TO BE CREATED FROM NEW WAREHOUSE BUILDINGS EMPLOYMENT SURPASSED ITS PRIOR 2018 PEAK LEVEL IN OCTOBER 2022FUTURE EMPLOYMENT GROWTH WILL BE GENERATED BY MOST SECTORS, INCLUDING WAREHOUSE/DISTRIBUTION1636,830 41,124 45,503 52,496 56,545 60,591 65,139 64,358 62,974 59,054 58,210 61,188 63,884 66,188 71,253 73,262 75,159 75,383 75,611 74,445 68,040 72,122 77,360 78,943 81,168 83,389 84,992 86,192 20002001200220032004200520062007200820092010201120122013201420152016201720182019202020212022-Est.2023-F2024-F2025-F2026-F2027-FPage 640 of 715 17FORECAST OF ANNUAL RANCHO CUCAMONGA EMPLOYMENT –ANNUAL CHANGES •BASED UPONACONSIDERATION OF RECENT/EXPECTEDECONOMIC–EMPLOYMENTTRENDS FOR FIRMS IN THE CITY–EMPLOYMENT GROWTH WAS ~4,100 IN 2021AND ~ 5,200 IN 2022, ATTAINING ANEW PEAK LEVEL–FUTURE GROWTH IN 2023-2027 IS EXPECTED TO AMOUNT TO ~1,200-2,200 PER YEAR, INCLUDING ~400-1,000 PER YEAROFADDITIONALWAREHOUSE/DISTRIBUTION JOBS Page 641 of 715 18LOCATION OF EMPLOYMENT VS. AFFORDABILITY OF HOUSING•RANCHO CUCAMONGA’S HOUSEHOLDS WITH JOBS (BLUE LINE) •EXCEED THE NUMBER OF JOBS BY FIRMS IN THE CITY (GREEN LINE)•ABOUT 17,000 (NET) CITY RESIDENTS COMMUTE TO JOBS OUTSIDE THE CITY, TYPICALLY AT HIGHER SALARIESTHAT ENABLE THEM TO AFFORD HOUSING IN THE CITY•FOR WAREHOUSE/DISTRIBUTION WORKERS WITH SALARIES OF ABOUT $55,000/YR.MANY WILL NEED TO SEEK MORE AFFORDABLE HOUSING OUTSIDE OF THE CITY. 20002001200220032004200520062007200820092010201120122013201420152016201720182019202020212022-Est.2023-F2024-F2025-F2026-F2027-FPage 642 of 715 III. EXPECTED IMPACTS ON THE HOUSING MARKETNEAR-TERM: RESTRICTIVE FED POLICIES HAVE SIGNIFICANTLY INCREASED MORTGAGE RATES.RECENT SURGES IN MORTGAGE RATES HAVE SUBSTANTIALLY INCREASED MORTGAGE PAYMENTS FOR PURCHASERS OF EXISTING AND NEW HOMES.FOR EXAMPLE, WITH A 30 YEAR FIXED RATE FOR A MORTGAGE LOAN OF $800,000:FOR A 2.9% MORTGAGE RATE, THE MORTGAGE INTEREST ON THE LOAN WOULD BE ABOUT $400,000.FOR A MORTGAGE RATE OF 6.9% (RECENT PEAK LEVEL), MORTGAGE INTEREST ON THE LOAN EXCEEDS $1,000,000.THE MAJORITY OF US HOMEOWNERS HAVE RECENTLY PURCHASED/REFINANCED THEIR MORTGAGE LOANS AT HISTORICALLY LOW RATES, SO THEY MAY BE RELUCTANT TO PURCHASE ANOTHER HOME WITH A MUCH HIGHER NEW MORTGAGE RATE.72% OF HOMEOWNERS HAVE A MORTGAGE RATE THAT’S 4.0% OR LESS55% OF HOMEOWNERS HAVE A RATE THAT IS 3.5% OR LESS34% HAVE A RATE THAT’S 3.0% OR LESSMOVE UP PURCHASERS FOR HOMES WILL LIKELY HAVE A MUCH HIGHER MORTGAGE RATE THAN THEIR EXISTING HOMES.FURTHERMORE, THEY WILL ALSO NEED TO FIND A BUYER FOR THEIR CURRENT HOME WHO WILL BE ABLE TO AFFORD AHIGHER MORTGAGE RATE.EVENTUALLY WHEN INFLATION RETURNS TO 2%, MORTGAGE RATES DECLINE, NORMAL HOUSING MARKET RETURNS. FINANCIAL MARKETS WILL REACT POSITIVELY TO THE FED BEING ON A SUSTAINED PATH TO SUCCESSFULLY ACCOMPLISH THE 2% INFLATION TARGET.SUCH LOWER INFLATION RATES, IN TURN, SHOULD RESULT IN LOWER MORTGAGE RATES.THE HOUSING MARKET RETURNS TO A NORMAL LEVEL OF SALES AND APPRECIATION.19Page 643 of 715 20ANNUAL PRICE CHANGE FOR RANCHO CUCAMONGA (2000 – 2022)FROM 2000 TO 2022, PRICES HAVE GONE THROUGH FOUR MAJOR PERIODS: •2000-2006: STRONG GROWTH DRIVEN BY CREATIVE FINANCE, PRICES RISING ABOUT 20% PER YEAR •2006-2010: HOUSING BUBBLE CORRECTION WITH PRICES FALLING -10% PER YEAR •2010-2020: STEADY PRICE RISE OF ~5% PER YEAR •2020-2022: COVID-19 IMPACT WITH PRICES RISING BY SOME 18%/YR DUE TO HISTORICALLY LOW MORTGAGE RATES TOTAL PRICE INCREASE BY TIME PERIOD BY TYPE $234,814 $261,078 $298,204 $364,662 $467,093 $566,348 $620,278 $614,926 $451,042 $383,044 $379,900 $389,151 $398,402 $449,754 $489,667 $513,452 $534,307 $568,142 $606,769 $606,040 $653,712 $767,633 $876,332 $131,493 $140,081 $163,679 $202,156 $256,041 $342,651 $362,206 $347,120 $269,627 $218,865 $220,711 $238,177 $255,642 $281,869 $298,684 $301,124 $319,521 $341,264 $366,727 $363,284 $371,745 $443,082 $511,176 Page 644 of 715 21SALES OF EXISTING/NEW HOMES IN RANCHO CUCAMONGASINGLE-FAMILY DETACHED AND ATTACHED, 2000-2022•SALES OF EXISTING/NEW SINGLE FAMILY DETACHED HOMES DECLINED FROM 1,509 IN 2021 TO 1,068 IN 2022, LOWEST SINCE ATLEAST 2000•WHILE THE SALES OFATTACHED HOMES DECLINED FROM 391 IN 2021 TO 315 IN 2022, THE LOWEST SINCE 2013•THESE DECLINES CAN BEATTRIBUTED TO HIGHER MORTGAGE RATESoEXISTING HOMEOWNERS WANT TO KEEPTHEIR HISTORICALLY LOW MORTGAGE RATESoPURCHASERS OF HOMES FACE HIGHER NEW MORTGAGE RATES2,3462,5523,0153,1042,8592,8632,0151,3381,4941,5691,5771,1921,2281,4701,3611,5821,5191,4781,3381,3201,4271,5091,068390 438 480 577 837 983 629 474 410 535 435 294 269 348 348 340 330 394 321 319 355 391 315 Page 645 of 715 TRENDS/PATTERNS FOR U.S. MORTGAGE RATES SINCE 2018 •MORTGAGE RATES ARE A SECONDARY DRIVER OF HOUSING DEMAND; EMPLOYMENT GROWTH IS TYPICALLY THE PRIMARY DRIVER•MORTGAGE RATES HAD A PRIOR PEAK OF 4.9% IN NOVEMBER 2018•RATES THEN DECLINED TO THEIR LOWEST LEVEL OF 2.8% IN JANUARY 2021, DUE TO FED POLICIES TO STIMULATE THE ECONOMY •RATES REMAINED AT HISTORICALLY LOW LEVELS, BELOW 3.2%, THROUGH DECEMBER 2021 •BUT THEN DUE TO HIGHER INFLATION, MORTGAGE RATES ROSE TO 6.9% IN OCTOBER 2022 AND REMAINED ABOVE 6.0% IN 202322January 2018 March 2018 May 2018 July 2018 September 2018 November 2018 January 2019 March 2019 May 2019 July 2019 September 2019 November 2019 January 2020 March 2020 May 2020 July 2020 September 2020 November 2020 January 2021 March 2021 May 2021 July 2021 September 2021 November 2021 January 2022 March 2022 May 2022 July 2022 September 2022 November 2022 January 2023 March 2023 May 2023 30-YEAR FIXED MORTGAGE RATESPage 646 of 715 RANCHO CUCAMONGA –ANNUAL HOUSING PAYMENTS BY MONTH (JAN. 2018 – DEC. 2024 FORECAST) ANNUAL HOUSING PAYMENTS REPRESENT THE SUM OF MORTGAGE PRINCIPAL, MORTGAGE INTEREST AND PROPERTY TAXES •FROM JANUARY 2019 TO DECEMBER 2020HOUSING PAYMENTS WEREABOUT~$33,000/YR; LOWER RATES OFFSET HIGHER PRICES•DURING 2021HOUSING PAYMENTS ROSE TO~$40,000/YR.:MORTGAGE RATES WERE RELATIVELY STABLE BUT PRICES ROSE SUBSTANTIALLY•THEN IN LATTER 2022, PAYMENTS ROSE TO~$51,000/YR.:PRICES CONTINUED TO INCREASEAND RATES ROSE SIGNIFICALLYTO ABOUT ~6.5%23E. DECEMBER 2024:IF CURRENT HOUSING PRICES DECLINED BY -8% AND MORTGAGE RATES DECLINED TO 4.5% BY DECEMBER 2024, THE PAYMENT WOULD FALL TO $38KA. 2019-2020: LOWER RATES OFFSET HOUSING APPRECIATIONB. 2021: RISING PRICES AND STABLE RATES DROVE PAYMENTS HIGHER. C. EARLY 2022: HIGHER PRICES AND MORTGAGE RATES DROVE PAYMENTS EVEN HIGHERANNUAL HOUSINGPAYMENT LEVELSD. MID-LATER 2022: FALLING PRICES OFFSET BY RISING MORTGAGE RATES AS PAYMENTS GO EVEN HIGHER1/1/20185/1/20189/1/20181/1/20195/1/20199/1/20191/1/20205/1/20209/1/20201/1/20215/1/20219/1/20211/1/20225/1/20229/1/20221/1/20235/1/20239/1/20231/1/20245/1/20249/1/2024ANNUAL HOUSING PAYMENT AMOUNTS (IN JAN. 2023 $)……………..A…………….|….B….|..C…|..D..|……..….…......EPage 647 of 715 24RANCHO CUCAMONGA – SHARE OF ANNUAL HOUSING PAYMENTS BY MONTH (JAN. 2018 – DEC. 2024 F) ANNUAL HOUSING PAYMENTS = MORTGAGE PRINCIPAL + MORTGAGE INTEREST + PROPERTY TAXES FOR THE FIRST YEAR •A. JAN. 2018:MORTGAGE INTEREST PAYMENT SHARE MADE UPABOUT34%OF THE TOTALANNUAL HOUSING PAYMENT•B. JAN. 2018 TO DEC. 2020:MORTGAGE INTEREST PAYMENT SHARE DECLINED TO25%:RATES FELLAND PRINCIPAL SHARE ROSE WITH PRICES•C. DEC. 2020 TO NOV. 2022:MORTGAGE INTEREST RATE SHARE ROSE TOALMOST50%AS MORTGAGE RATES ROSE.•PURCHASERS OF HOMES AT CURRENT RATES HAVE TWICEAS MUCH MORTGAGE INTEREST THANAT HISTORICALLY LOW RATES1/1/20185/1/20189/1/20181/1/20195/1/20199/1/20191/1/20205/1/20209/1/20201/1/20215/1/20219/1/20211/1/20225/1/20229/1/20221/1/20235/1/20239/1/20231/1/20245/1/20249/1/2024ANNUAL HOUSING PAYMENT SHARES (ADJUSTED FOR INFLATION)A B CPage 648 of 715 RANCHO CUCAMONGA HOUSING SUPPLY, DEMAND, AND PRICE APPRECIATION (JAN. 2018 – DEC. 2022)•A. IN 2018 TO EARLY2020, THE CITY HOUSING INVENTORY(SUPPLY/RED)WAS HIGHER THAN PENDING SALES(DEMAND/GREEN),NORMAL•B. HOWEVER, BEGINNING IN2NDQUARTER OF 2020, HOUSING DEMANDAND SUPPLY STARTED TO CONVERGEAND MET IN 2021•C. ONCE SUPPLYAND DEMAND CURVES STARTED TO CONVERGE, THIS WAS FOLLOWED BYA SIGNIFICANT INCREASE INPRICEAPPRECIATION•D. DURING 2022,INVENTORY EXCEEDED PENDING SALES, CLOSER TO NORMAL PATTERNS, BUTINVENTORYSTILLLOW DUE TO HIGH RATES252018-03-01 2018-06-01 2018-09-01 2018-12-01 2019-03-01 2019-06-01 2019-09-01 2019-12-01 2020-03-01 2020-06-01 2020-09-01 2020-12-01 2021-03-01 2021-06-01 2021-09-01 2021-12-01 2022-03-01 2022-06-01 2022-09-01 2022-12-01RANCHO CUCAMONGA HOUSING PRICE CHANGE SINCE JAN. 2018RANCHO CUCAMONGA PENDING LISTINGS AND INVENTORY………..….A……..….|…….B…....|….....C…..…|…...D…..Page 649 of 715 RANCHO CUCAMONGA – HOUSING INVENTORY (SUPPLY) AND PENDING LISTINGS (DEMAND) (2018 –2022) •A. FOR 2018-2020, THE LEVEL OF FOR-SALE HOMES/INVENTORY WAS HIGHER THAN DEMAND/SALES, NORMAL CONDITIONS•B. BUT IN 2021, DUE TO COVID-19, INVENTORY DECLINED SIGNIFICANTLY, UNIQUE CONDITION•C. FOR 2022 THERE WERE DECLINES IN DEMAND (AFFORDABILITY) AND SUPPLY (SLOW SALES) DUE TO HIGHER MORTGAGE RATES.26A B CRANCHO CUCAMONGA PENDING LISTINGS AND INVENTORY (2018-2020, 2021 ANNUAL AVERAGE; 2022 AND 2023 BY MONTH)DEMAND 2022;MONTHLYSUPPLY 2022;MONTHLYDEMAND 2023SUPPLY 2023; MONTHLYRANCHO CUCAMONGA PENDING LISTINGS AND INVENTORY (2018-2020, 2021 ANNUAL AVERAGE; 2022 AND 2023 BY MONTH)SUPPLY 2021AVG. DEMAND 2021;MONTHLYRANCHO CUCAMONGA PENDING LISTINGS AND INVENTORY (2018-2020, 2021 ANNUAL AVERAGE; 2022 AND 2023 BY MONTH)Page 650 of 715 27IV. MARKET CONDITIONS THE NEW RESIDENTIAL FOR-SALE AND APARTMENTS UNITS•THE COMPOSITION OF THE RANCHO CUCAMONGA HOUSING MARKET FOR NEW HOMES AND APARTMENT UNITS HASRECENTLY UNDERGONE A SIGNIFICANT SHIFT FROM PRIMARILY FOR-SALE HOMES TO MULTIFAMILY APARTMENTRENTALS.•WITH REGARDS TO NEW FOR-SALE HOMES,THERE WERE 17 PROJECTS WITH 1,105 HOMES IN 2020 THAT WERE ON THEMARKETPLACE,AND NOW THESEAREALL CURRENTLYCLOSED-OUT, OCCUPIED BY HOMEOWNERS.•FURTHERMORE, ALTHOUGH THERE ARE SEVERAL MAJOR PROJECTS IN THE PLANNING PROCESS, THESE HAVE NOT YETCOME ONTO THE MARKETPLACE NORAREANY OF THEM EXPECTED TO HAVE MARKET ENTRIES DURING 2023.•WITH REGARDS TO MULTIFAMILY APARTMENTS,THE PLANNED COMMUNITY OF THE RESORT HAD A MAJOR APARTMENTPROJECT COME ONTO THE MARKET IN 2022 WHICH IS EXPECTED TO HAVE 867 UNITS.•ADDITIONALLY, THERE ARE ANOTHER SIX APARTMENT PROJECTS THAT ARE EXPECTED TO HAVE 1,803 ADDITIONAL UNITS.THREE OF THESE PROJECTS HAVE ALREADY PULLED BUILDING PERMITS FOR 614 UNITS, AND THE OTHER THREE AREEXPECTED TO COMPLETE THEIR PLANNINGAPPROVALSAND MAY COMMENCE DEVELOPMENT BY THE END OF 2023.•THIS SECTION FOCUSES UPON THE RANCHO CUCAMONGAMARKET CONDITIONS FOR MULTIFAMILY APARTMENT HOUSINGSECTOR,AND DISCUSSES THEABSORPTION OFTHE CURRENTLYACTIVE AND FORTHCOMING PROJECTS. Page 651 of 715 28RANCHO CUCAMONGA FOR-SALE HOMES: PRICE PATTERNS AND SALES TRENDS•THE RECENT 2021 SALES RATE ALMOST DOUBLED FROM 2020, FROM 308 TO 578 HOMES•THE VALUE RATIO ROSE SUBSTANTIALLY, FROM $300/SQ.FT. IN 2020 TO $428/SQ.FT. IN 2021•THE SINGLE REMAINING PROJECT IN 2022 CLOSED OUT ITS 17 HOMESPage 652 of 715 OVERVIEW OF APARTMENT RENTAL RATES SAN BERNARDINO COUNTY AND RANCHO CUCAMONGA29•FOR SAN BERNARDINO COUNTY (SBC) RENTS INCREASED FROM AROUND $1,419 IN EARLY 2015 TO $2,458 RECENTLY.•WHILE FOR RANCHO CUCAMONGA RENTS INCREASED FROM $1,709 IN EARLY 2015 TO $2,711 RECENTLY•SO RANCHO CUCAMONGA RENT LEVELS HAVE CONSISTENTLY BEEN ABOVE THOSE FOR SAN BERNARDINO COUNTY AS A WHOLE.3/1/15 9/1/15 3/1/16 9/1/16 3/1/17 9/1/17 3/1/18 9/1/18 3/1/19 9/1/19 3/1/20 9/1/20 3/1/21 9/1/21 3/1/22 9/1/22APARTMENT RENT TRENDS RANCHO CUCAMONGA & SAN BERNARDINO COUNTYPage 653 of 715 OVERVIEW OF APARTMENT RENTAL APPRECIATION RATES SAN BERNARDINO COUNTY AND RANCHO CUCAMONGA30•THE APARTMENT MARKET FOR SAN BERNARDINO COUNTY (SBC) EXPERIENCED AN APPRECIATION RATE OF ABOUT 5% ANNUALLY FROM 2017 TO SUMMER 2020. •BUT FOR RANCHO CUCAMONGA (RC), ALTHOUGH RENTS APPRECIATED AT 5% IN 2017, THE RATE DECLINED TO 0% IN SUMMER 2020.•IN SUMMER 2021 SBC AND RC BOTH EXPERIENCED PEAK APPRECIATION RATES OF ABOUT ~20%.•HOWEVER, SINCE SEPTEMBER 2021, FOR BOTH SBC AND RC, APPRECIATION RECENTLY DECLINED TO LESS THAN 5%. -5%0%5%10%15%20%25%APARTMENT RENT PATTERNS - CHANGES ANNUALLYRANCHO CUCAMONGA & SAN BERNARDINO COUNTYRancho CucamongaSan Bernardino CountyPage 654 of 715 31•HOMECOMING IS LOCATED IN A PLANNED COMMUNITY (THE RESORT) WHICH HAS A COPIOUS AMENITY PACKAGE.•RENTS RANGE FROM $2,499 FOR 776 SQ.FT. TO $4,898 FOR 2,349 SQ.FT.•THE OTHER FORTHCOMING APARTMENT PROJECTS ARE NOT IN PLANNED COMMUNITIES SO THEIR RENTS MAY BE LOWER.RENTS FOR A CURRENTLY ACTIVE PROJECT: HOMECOMING AT THE RESORTPage 655 of 715 32RANCHO CUCAMONGA – NEW APARTMENT PROJECTS APPROXIMATE LOCATIONSABCEFDGPage 656 of 715 RANCHO CUCAMONGA NEW APARTMENT PROJECTSCURRENTLY ACTIVE, UNDER CONSTRUCTION AND NEAR TERM 33•THERE ARE A TOTAL OF SEVEN ACTIVE, UNDER CONSTRUCTION AND NEAR-TERM APARTMENT PROJECTS THAT ENTITLEMENTS FOR 2,670 UNITS, OF THESE, 1,349 HAVE HAD PERMITS ISSUED.867193131660260311248735175963430 0 001002003004005006007008009001000RANCHO CUCAMONGA NEW APARTMENT PROJECTSCURRENT PROJECT STATUSTOTAL UNITSBUILDING PERMITSPage 657 of 715 34CHARACTERISTICS OF THE NEW APARTMENT PROJECTSCURRENTLY ACTIVE, UNDER CONSTRUCTION, NEAR TERM & FUTURE(SOURCE: CITY OF RANCHO CUCAMONGA)Page 658 of 715 35•MARKET DEMAND IS ESTIMATED BASED UPON THE CITY’S OVERALL EMPLOYMENT GROWTH WITH SPECIAL CONSIDERATION FOR NEWLY DEVELOPING WAREHOUSE/DISTRIBUTION FACILITIES WITH ~2,800 NEW JOBS.•ABSORPTION AMONG THE PROJECTS IS PRIORITIZED ACCORDING TO THEIR CURRENT DEVELOPMENT APPROVAL STATUS.•THE PACE OF NEW DEVELOPMENT IS EXPECTED TO OCCUR IN A SYNCHRONIZED MANNER TO MAINTAIN STABLE RENTS.•SHOULD EXCESS UNITS ENTER THE MARKETPLACE, RENTS WOULD NEED TO BE LOWERED TO MAINTAIN ABSORPTION.ESTIMATED ABSORPTION SCHEDULES FOR NEW APARTMENT PROJECTS NUMBER OF APARTMENT RENTAL'S - ANNUALLY Page 659 of 715 36Resume: Joseph T. Janczyk, Ph.D.President of Empire EconomicsEducation:University of California, Riverside, Ph.D. in Economics, Completed in 1976Specializations in Urban Economics, Mathematical Modeling and Econometric AnalysisState University of New York at Buffalo, Bachelors, Completed in 1970Dual Majors: Economics and Psychology Prior Employment: California State University, Tenured Economics Professor: 1976-1985Courses Taught: Microeconomics, Macroeconomics, Urban Economics, Regional, Computer Modeling, Econometrics, among othersEmpire Economics:Chairman and President: 1986-Present Perform Independent Real Estate Consulting Services Primarily for Land Secured FinancingsWork for Public Entities including Counties, Cities, School Districts and Water Districts Long-term Relationships with Many Clients, 25+ years Well Established Relationships with Numerous Professionals in the Municipal Finance Industry Performed 500+ Studies on behalf of Public Entities for $15B+ in municipal financingoLand Secured Financings for Planned Communities, Business Parks and Retail Centersfor 400+ CFDs/ADs for $7.5B bondsPrice Point Study – Establish Special Taxes that conform to public entities’ policies Market Absorption Studies - Provide timelines for phasing infrastructureHomeowner Equity Studies and Forecasts of Assessed Values Economic Forecasting Studies: Forecast Employment and Housing DemandSocioeconomic Studies Orange County Transportation Corridors: 2 studies $2.75B bondsoDesignated as Municipal Bond Issue of the Year for 1999 oRating Agency and Bond Insurer Presentations – Trips to New York CityMortgage Revenue Bond Issues: Lower Mortgage Rates 50+ studies for $1.7B bondsOther Municipal Bond Issues: 35+ studies $2B+ bonds; Certificates of Participation, others Forthcoming Bond Issues: 25+ studies for $400M+ future bond salesIndustry Contributions – Regular Speaker/Panelist at Following Events: State Treasurer, Mr. John Chiang: Council of Economic Advisors: January 2015 – December 2018oBi-annual meetings and published articles in the Treasurer’s Newsletter, IntersectionsUCLA Municipal Bond Financing Seminars (10+ times, as Featured Speaker) Bond Buyer Conference League of Cities Municipal Bond Industry Association Best Practices for Continuing Disclosure Appraisal Standards for Land Secured Financing by CDIAC Meetings with Municipal Bond Funds Dedicated to Public Sector: Certifications Provided in each Study:Empire has not performed any consulting services for the CFD/AD property owners nor the developers/builders, during the past thirty years.Empire will not perform any consulting services for the CFD/AD property owners nor the developers/builders, during the next five years. Page 660 of 715 1CITY OF RANCHO CUCAMONGATHE CURRENT AND FUTURE STATE OF WAREHOUSE/DISTRIBUTIONECONOMIC, ENVIRONMENTAL AND OPPORTUNITY COST IMPACTSPREPAREDBY EMPIRE ECONOMICS, INC.JOSEPH T. JANCZYK, PH.D.APRIL 17, 2023(JUNE 2023 – UPDATES TO RECENT VACANCY RATES AND LEASE RATES)ATTACHMENT 2Page 661 of 715 THE INLAND EMPIRE (IE) HAS A STRATEGIC GEOGRAPHIC LOCATION WITHIN SOUTHERN CALIFORNIA THAT HAS RECENTLY ATTRACTED NUMEROUS WAREHOUSE/DISTRIBUTION (W/D) FACILITIES OVER THE LAST 30 YEARS, GAINING EVEN MORE TRACTION IN RECENT YEARS.FURTHERMORE, WITHIN THE IE, RANCHO CUCAMONGA (RC) HAS A STRATEGIC LOCATION AS COMPARED TO EASTERLY CITIES, SINCE RC IS IN CLOSER PROXIMITY TO BOTH THE ENTRY PORTS AS WELL AS THE LA-OC POPULATION CENTERS RESULTING IN HIGHER RENTS..MARKET CONDITIONS FOR W/D SPACE CONTINUES TO BE ROBUST COMAPRED TO HISTORIC LEVELS, WITH RENT AT AN ALL TIME HIGH AND CURRENT VACANCY CLOSE TO AT AN ALL TIME LOW. ADDITIONALLY, STRONG FUTURE DEMAND FOR W/D IS EXPECTED TO CONTINUE DURING THE FORESEEABLE FUTURE. PLEASE NOTE THAT FOR THE W/D FACILITIES IN THE FIRST QUARTER OF 2023, RELATIVE TO 2022, VACANCIES HAVE INCREASED, AND MARKET RENTS HAVE SLIGHTLY DECREASED DUE TO SUPPLY/DEMAND GETTING CLOSER TO EQUILIBRIUM, BUT WE ARE STILL AT HISTORIC LOWS. FURTHERMORE, AS SOME CITIES IN THE IE IMPOSE MORATORIUMS/REGULATIONS ON NEW W/D DEVELOPMENTS, THIS DEMAND WILL LIKELY SHIFT TO OTHER NEARBY CITIES SUCH AS RC. HOWEVER, W/D FACILITIES DO NOT HAVE A SIGNIFICANT BENEFICIAL ECONOMIC IMPACT SINCE THEY EMPLOY RELATIVELY FEW WORKERS PER ACRE DUE TO THEIR AUTOMATION, HAVE MODERATE PAY LEVELS AND MOST EMPLOYEES SEEK LOWER PRICED HOUSING ELSEWHERE.FURTHER ADVANCES IN AUTOMATION WILL ACCENTUATE THESE TRENDS, PRIMARILY FOR NEW W/D DEVELOPMENTS.WITH REGARDS TO POTENTIAL ADVERSE IMPACTS ON THE CITY’S RESIDENTS, W/D FACILITIES/OPERATIONS HAVE TRUCKS THAT RESULT IN MORE TRAFFIC CONGESTION AND ALSO GENERATE NOISE/AIR POLLUTION THAT INCREASES HEALTH RISKS.POTENTIAL OTHER LAND USES THAT MAY BE DEVELOPED ALONG THE PERIMETER AROUND THE CITY’S CORE EMPLOYMENT CENTER INCLUDE OFFICE, RETAIL AND MULTIFAMILY. HOWEVER, THEIR POTENTIAL IS LIMITED DUE TO THEIR CURRENTLY LESS FAVORABLE MARKET CONDITIONS RELATIVE TO W/D, AS WELL AS SUCH LAND USES UTILIZING SMALLER AND INFILL PARCELS. THEREFORE, CONSIDERING THE STRONG MARKET CONDITIONS FOR W/D FACILITIES IN THE IE ALONG WITH THE CITY HAVING SOME LARGER PARCELS FOR FUTURE W/D FACILITIES, THE CITY MAY DESIRE TO CONSIDER MITIGATING THE ADVERSE IMPACTS OF FUTURE W/D FACILITIES ON THE CITY’S RESIDENTS BY NEGOTIATING WITH DEVELOPERS TO REDUCE THE TYPICAL AMOUNT OF TRAFFIC CONGESTION AND AIR POLLUTION. 2EXECUTIVE SUMMARY: SYNOPSIS AND CONCLUSIONSPage 662 of 715 OVERVIEW OF THE MARKET ANALYSIS OF WAREHOUSE/DISTRIBUTION IN RANCHO CUCAMONGA3SECTION IDEMAND FOR WAREHOUSE/DISTRIBUTION CENTERS IN THE INLAND EMPIRESECTION IIDEMAND FOR WAREHOUSE/DISTRIBUTION CENTERS IN RANCHO CUCAMONGA SECTION IIIBENEFIT/COST ANALYSIS OFWAREHOUSE/DISTRIBUTIONWITH THEDIRECT ECONOMIC COMPONENTSAND OTHER NON-ECONOMIC FACTORSSECTION IVCOMPARISON OF THE BENEFIT/COSTSFOR POTENTIAL LAND-USESWITH THEDIRECT ECONOMIC COMPONENTSAND OTHER NON-ECONOMIC FACTORSPage 663 of 715 FULL STUDYTABLE OF CONTENTS4APPENDIX PAGE(S)MAIN REPORT PAGE(S)KEY RESEARCH WITH SOURCESCONTENTN/A2N/AEXECUTIVE SUMMARY30-313N/AOVERVIEW OF THE MARKET ANALYSIS OF WAREHOUSE/DISTRIBUTION IN RANCHO CUCAMONGAN/A4N/ATABLE OF CONTENTS32-355-12***VOIT MARKET DATA***,PUBLICLY AVAILABLE BUILDING PERMIT AND APN DATA, ***SB SUN 10/13/2022***, PUBLICLY AVAILABLE EMPLOYMENT DATA FROM BLS,***UCR 12.20.2022***, ***PRESS ENTERPRISES 10.20.2021***, ***PRESS ENTERPRISES 9.20.2021***, ***BLOOMBERG 6.14.2020***, ***INDUSTRIAL WAREHOUSING IN THE SCAG REGION APRIL 2018***I. DEMAND FOR WAREHOUSE/DISTRIBUTION CENTERS IN THE INLAND EMPIRE36-3913-20SAME DATA SOURCES AS ABOVE, ***CITY OF RC ECONOMIC OUTLOOK DECEMBER 2020, ***THE CITY OF RC PLANNING DEPARTMENT***II. DEMAND FOR WAREHOUSE/DISTRIBUTION CENTERS RANCHO CUCAMONGA 40-4521-23***BLOOMBERG 8.15.2022***, PUBLICLY AVAILABLE EMPLOYMENT DATA FROM BLS, ***SOUTH COAST AIR QUALITY DISTRICT***, ***LA TIMES 2.5.2023***, REDLANDS DAILY FACTS 2.22.2023***,***CITY OF RC GENERAL PLAN***, ***LOS ANGELES TIMES 12.28.2022***, DELOITTE REAL ESTATE OUTLOOK 2021, APN DATA FROM THE CITY OF RC, VOIT WEBSITE, CBRE WEBSITE, CUSHMAN AND WAKEFIELD WEBSITEIII. BENEFIT/COST ANALYSIS OF WAREHOUSE/ DISTRIBUTIONWITH THE DIRECT ECONOMIC COMPONENTSAND OTHER NON-ECONOMIC FACTORS4624-28IV. COMPARISON OF THE BENEFIT/COSTSFOR POTENTIAL LAND-USESWITH THEDIRECT ECONOMIC COMPONENTSAND OTHER NON-ECONOMIC FACTORS4Page 664 of 715 SECTION IDEMAND FOR WAREHOUSE/DISTRIBUTION CENTERS IN THE INLAND EMPIRE5Page 665 of 715 HISTORICAL DEVELOPMENT OF THE WAREHOUSE/DISTRIBUTION MARKET IN THE INLAND EMPIRE6• THE LOGISTICS INDUSTRY IS CENTERED AROUND GOODS COMING INTO THE PORTS OF LOS ANGELES (LA) AND LONG BEACH BEFORE BEING DISTRIBUTED TO W/D FACILITIES IN SOUTHERN CALIFORNIA OR BEING SHIPPED ON RAIL TO OTHER AREAS.• THE MOVEMENT OF THESE GOODS EASTERLY INTO THE INLAND EMPIRE AND ACROSS THE COUNTRY IS FACILITATED BY: SUBSTANTIAL INVESTMENTS IN RAILROAD LINES THE DEVELOPMENT OF AND SIGNIFICANT ENHANCEMENTS TO FREEWAYS: 10, 60 & 15 • CURRENTLY, 40% OF THE NATION’S IMPORTS FROM ASIA ARE PROCESSED THROUGH THE PORTS AND THEN GO INTO THE INLAND EMPIRE AND BEYOND. • THE COMBINATION OF IMPORTS AND TRANSPORTATION SYSTEM SUPPORT THE ROBUST DEVELOPMENT OF WAREHOUSE/DISTRIBUTION CENTERS IN THE INLAND EMPIRE AREA:1) COPIOUS SUPPLY OF VACANT PROPERTY, WITH LARGE PARCELS INCLUDING PARCELS DUE TO THE CLOSURES OF KAISER STEEL AND NORTON AFB 2) RELATIVELY LOWER LABOR COSTS IN THE INLAND EMPIRE VS. LA AND OC• WITHIN THE INLAND EMPIRE, RANCHO CUCAMONGA HAS A PREFERRED LOCATION, COMPARED TO CITIES LOCATED EASTERLY:• CLOSER PROXIMITY TO THE PORTS• CLOSER POXIMITY TO EXISTING HIGHWAYS AND RAIL LINES • CLOSER PROXIMITY TO MAJOR POPULATION AREAS, SUCH AS LA. Page 666 of 715 GEOGRAPHICAL DEVELOPMENT PATTERNS FOR WAREHOUSE/DISTRIBUTION MARKET IN THE INLAND EMPIRERANCHO CUCAMONGA HAS A STRATEGIC LOCATION VS CITIES LOCATED EASTERLY IN SB-R COUNTIESCLOSER PROXIMITY TO THE PORTS/RAIL/HIGHWAYS AND ALSO CLOSER PROXIMITY TO THE LA POPULATION CORE7Page 667 of 715 EMPLOYMENT TRENDS FOR WAREHOUSE/DISTRIBUTION (W/D) WORKERS IN THE INLAND EMPIRE• DESPITE CHANGES IN WAREHOUSE TECHNOLOGY FROM 1990 TO 2020 THERE ARE TWICE AS MANY WORKERS IN EACH COMPARABLE SPACE DUE TO COMPLEXITY CHANGES. • COVID-19 ACCELERATED THE TREND FOR ADDITIONAL WAREHOUSE SPACE BY 2 YEARS DUE TO INCREASED DEMAND FROM E-COMMERCE. • DESPITE AUTOMATION, THE NEED FOR WAREHOUSE WORKERS IS EXPECTED TO OUTPACE ALL OTHER SEGMENTS UNTIL 2028 DUE TO HIGH DEMAND FOR WAREHOUSE SPACE.8SHARE OF TOTAL EMPLOYMENTNUMBER OF EMPLOYEESEMPLOYMENT GROWTH FOR W/D HAS BEEN ROBUST FROM 18,000 IN 2010TO 132,000 IN EARLY 2023THE SHARE OF W/D TO TOTAL EMPLOYMENTHAS INCREASED FROM 1.6% IN 2010 TO 8.0%IN EARLY 2023Page 668 of 715 RECENT DEVELOPMENT TRENDS FOR WAREHOUSE/DISTRIBUTION CENTERS IN THE INLAND EMPIRE9THE TOTAL SQUARE FOOTAGE FOR WAREHOUSE/DISTRIBUTION IN THE INLAND EMPIRE HAS INCREASED FROM 423M IN 2008TO 630M IN 2022.WHILE THE NUMBER OF BUILDINGS HAS INCREASED BY 245 FROM 2008 TO 2022.THE AVERAGE SQUARE FEET OF A WAREHOUSE/DISTRIBUTION SPACE IS ABOUT 840,000 SQ.FT.SOME OF THE BIGGER BUILDINGS ARE IN THE 4M SQUARE FOOTAGE RANGE, SUCH AS THE NEW AMAZON DISTRIBUTION CENTER IN ONTARIO. BUILDINGS ON AVERAGE ARE TRENDING TOWARDS LARGER SIZES.DESPITE FEWER WORKERS PER SQUARE FOOT, THE LARGER BUILDINGS COUPLED WITH INCREASED DEMAND REQUIREMORE WORKERS OVERALL. 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022BUILDING COUNTTOTAL SQAURE FEET (M)Page 669 of 715 VACANCY RATES FOR WAREHOUSE/DISTRIBUTION MARKET IN THE INLAND EMPIRETHE INDUSTRIAL MARKET OF WHICH THE WAREHOUSE/DISTRIBUTION IS PART OF HAS BEEN ROBUST IN SOUTHERN CALIFORNIA. • VACANCY RATE FOR INDUSTRIAL SPACE IN THE INLAND EMPIRE SLIGHTLY INCREASED IN THE FIRST QUARTER OF 2023 TO 2.2% VS. 1.4% IN 2022,BY COMPARISON, THE VACANCY RATE DURING 2008-2009 WAS 10%-12%.• WHILE NEW DELIEVERIES ARE STILL BEING RECEIVED, HIGH INTEREST RATES AND UNCERTAIN DEMAND FOR FURTHER LEVELS OF ECOMMERCE GROWTH RELATIVE TO 2020-2022 IN THE INLAND EMPIRE IS DECREASING FUTURE DEMAND SOMEWHAT. 10Page 670 of 715 IMPACT OF NEW TECHNOLOGY ON TRANSPORTATION JOBS1. AUTONOMOUS, OR “SELF DRIVING” TRUCKS POSE THE BIGGEST RISK TO TRANSPORTATION WORKERS. 2. REGULATORY HURDLES FOR AUTONOMOUS TRUCKS ARE HIGH AND CURRENTLY REQUIRE A SAFETY DRIVER.3. AUTONOMOUS TRUCKS COULD EITHER INCREASE TRAFFIC IF TRUCKS (24/7) OR DECREASE TRAFFIC PENDING REGULATIONS. 4. POTENTIAL TO MANDATE GREEN TECHNOLOGY. • FUTURE TECHNOLOGY IS LIKELY TO IMPACT THE NEED FOR SOME WAREHOUSE/TRANSPORTATION WORKERS BUT NOT NECESSARILY THE NEED FOR SPACE, AS GOODS HAVE TO BE STORED/LOADED/UNLOADED IN A PHYSICAL LOCATION.• IT IS A SIGNIFICANT CAPITAL INVESTMENT TO DEPLOY NEW AUTOMATION TECHNOLOGY IN EXISTING SPACES AS THEY WERE NOT DESIGNED TO ACCOMMODATE RECENT TECHNOLOGICAL ADVANCES. • ADDITIONALLY, AUTONOMOUS TRUCK TECHNOLOGY WILL LIKELY HAVE A SIGNIFICANT IMPACT ON TRANSPORTATION JOBS, INCLUDING THE POTENTIAL REDUCTION OF TRUCK WORKERS IF APPROVED AS FULLY AUTONOMOUS. • AUTONOMOUS TRUCKS COULD IMPROVE GREENHOUSE EMISSIONS IF BATTERY POWERED, BUT ALSO ENABLE TRUCKS TO RUN 24/7. 11POTENTIAL IMPACT OF TECHNOLOGICAL CHANGE ON WAREHOUSE/DISTRIBUTION INDUSTRYIMPACT OF NEW TECHNOLOGY ON WAREHOUSE JOBS1. NEW TECHNOLOGIES ARE LIKELY TO LEAD TO WORK INTENSIFICATION.2. NEW TECHNOLOGIES HAVE THE POTENTIAL TO DE-SKILL SOME JOBS.3. NEW TECHNOLOGIES ARE POISED TO TRANSFORM HOW WORKERS ARE MANAGED.4. IN THE SHORT TO MEDIUM TERM, NEW TECHNOLOGIES LIKELY WILL NOT CAUSE WIDESPREAD JOB LOSS.5. TECHNOLOGY IS LIKELY TO HAVE UNEVEN IMPACTS ACROSS DEMOGRAPHICS AND OCCUPATIONS.TECHNOLOGICAL GAINS —"INCLUDING BUT NOT LIMITED TO THOSE THAT MAY DE-SKILL AND INTENSIFY WORK—APPEARS TO BE LED BY THE WIDESPREAD DESIRE TO COMPETE WITH AMAZON AND OTHER MAJOR ONLINE RETAILERS”SOURCE: PRIOR REPORT ON IMPACT OF AUTOMATIONPage 671 of 715 FORECAST OF FUTURE DEMAND FOR ADDITIONAL WAREHOUSE/DISTRIBUTION FOR THE INLAND EMPIRE 12EMPIRE FORMULATED A MOST PROBABLE FORECAST FOR FUTURE WAREHOUSE/DISTRIBUTION DEVELOPMENT IN THE INLAND EMPIRE:1) EXPECTED DEMAND FOR FUTURE WAREHOUSE/DISTRIBUTION DEVELOPMENT IN THE IE, AS MEASURED BY BUILDING SQ.FT. OF FLOOR SPACE SOURCE: SCAG STUDY, ADJUSTED FOR RECENT GROWTH DUE TO COVID (+10%) AND OTHER EXPECTED CONDITIONS. 2.) ADJUSTED FOR FURTHER AUTOMATION/OTHER TECHNOLOGY THAT MAY REDUCE THE AMOUNT OF FUTURE WAREHOUSE SPACE REQUIRED.SUCH ENHANCEMENTS ARE LIKELY TO PRIMARILY INCREASE THE VERTICALITY OF THE BUILDINGS.THE DEMAND FOR WAREHOUSE/DISTRIBUTION SPACE (SQ.FT.) IS FORECASTED TO INCREASE FROM 630M IN 2022 TO 806M IN 2040, BY ABOUT 28%.TOTAL CURRENT AND FORECASTED SQAURE FEET (M)Page 672 of 715 SECTION IIDEMAND FOR WAREHOUSE/DISTRIBUTION CENTERS IN RANCHO CUCAMONGA 13Page 673 of 715 EMPLOYMENT TRENDS FOR WAREHOUSE/DISTRIBUTION WORKERS IN RANCHO CUCAMONGA• THE RECENT DECLINE IN THE LEVELS OF W/D EMPLOYMENT CAN BE ATTRIBUTED PRIMARILY TO NEW W/D CENTERS WITH MORE AUTOMATION BEING BUILT AND TECHNOLOGY BEING IMPLEMENTED IN OLDER EXISTING CENTERS.• THE RECENT DECLINE IN THE W/D MARKET SHARE OF EMPLOYMENT CAN ALSO BE ATTRIBUTED TO THE RELATIVELY STRONGER GROWTH OF VARIOUS NON-W/D SECTORS SUCH AS HEALTHCARE.• FINALLY, IT IS WORTHWHILE TO NOTE THAT THERE ARE SEVERAL NEW W/D CENTERS THAT WILL BE ENTERING THE MARKETPLACE IN THE NEAR TERM THAT WILL SUBSTANTIALLY INCREASE THE LEVEL OF W/D EMPLOYMENT.14EMPLOYMENT INCREASED FROM 2,850 IN 2010 TO 4,500 IN 2014EMPLOYMENT REMAINED ABOVE 4,000 THROUGH 2018 THEN EMPLOYMENT DECREASED TO 2,700 IN 2020SINCE THEN, EMPLOYMENT ROSE TO 3,300 IN 2022THE SHARE OF W/D TO TOTAL EMPLOYMENTROSE FROM 4.3% IN 2010 TO A PEAK LEVEL OF 6.4% IN 2018THE SHARE THEN DECLINED TO ABOUT 5.0% DURING 2020-20222022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 SHARE OF TOTAL EMPLOYMENTPage 674 of 715 RANCHO CUCAMONGA: TYPICAL SALARY LEVELS BY ECONOMIC SECTORS.• THE AVERAGE SALARIES OF THE W/D WORKERS IN THE CITY OF $54,826 ARE SLIGHTLY BELOW THE AVERAGE WAGES FOR THE CITY AS A WHOLE OF $56,261.• BASED UPON THE AVERAGE SALARY LEVEL FOR W/D WORKERS, THEY WOULD NOT LIKELY BE ABLE TO PURCHASE A FOR-SALE HOME IN THE CITY.• WHILE SOME OF THE W/D WORKERS MAY CHOOSE TO RENT AN APARTMENT IN THE CITY, MOST WOULD LIKELY CHOOSE TO LIVE IN ANOTHER IE CITY THAT WOULD HAVE LOWER HOUSING COSTS.15Page 675 of 715 CURRENT STATE OF WAREHOUSE/DISTRIBUTION MARKET IN RANCHO CUCAMONGA THE CHARACTERISTICS OF THE RANCHO CUCAMONGA (RC) INDUSTRIAL MARKET ARE NOW DISCUSSED, AND COMPARED TO THOSE OF THE INLAND EMPIRE (IE) AS A WHOLE.WHILE W/D REPRESENTS THE MAJOR COMPONENT OF THE INDUSTRIAL PROPERTY DESCRIPTION, IT ALSO INCLUDES SOME MANUFACTURING AND RESEARCH DEVELOPMENT AS WELL.HOWEVER, SINCE THE SAME INDUSTRIAL STATISTIC IS UTILIZED FOR BOTH THE IE AND RC GEOGRAPHIC AREAS, THEN COMPARISONS BETWEEN THEM ARE MEANINGFUL.THE TOTAL NUMBER OF BUILDINGS AMOUNTS TO 749 FOR RC AND 8,700 FOR THE IE.; RC HAS A SHARE OF 8.6%THE AMOUNT OF SPACE AMOUNTS TO 41,000,000 FOR RC AND 630,000,000 FOR IE; RC HAS A SHARE OF 6.5% THE AMOUNT OF SPACE UNDER CONSTRUCTION AMOUNTS TO 2,830,654 FOR RC AND 33,036,000 FOR I.E: RC HAS A SHARE OF 8.6%* SO RC HAS A SIGNIFICANTLY HIGHER SHARE OF NEW DEVELOPMENT THE RECENT GROSS ABSORPTION AMOUNTS TO 1,920,000 FOR RC AND 30,550,000 FOR I.E: RC HAS A SHARE OF 6.3%THE VACANCY RATE AMOUNTS TO 1.64% FOR RC AND 1.41% FOR IETHE TOTAL AMOUNT OF SQUARE FOOTAGE AVAILABLE AMOUNTS TO 1,346,000 FOR RC AND 19,900,000 FOR IE., RC HAS A SHARE OF 5.7%THE ASKING LEASE RATE AMOUNTS TO $1.50/SQ.FT. FOR RC AND $1.59/SQ.FT. FOR IETHE LOWER RENTS FOR THE RC BUILDINGS MAY REFLECT THEIR AGE - NOT EASILY ABLE TO ACCOMMODATE NEW TECHNOLOGY16Page 676 of 715 FORECAST OF NEAR-TERM AND FUTURE DEVELOPMENTFOR WAREHOUSE/DISTRIBUTION PROJECTS17THE RANCHO CUCAMONGA PLANNING DEPARTMENT PROVIDED INFORMATION ON THE WAREHOUSE/DISTRIBUTION PROJECTS THAT ARE CURRENTLY UNDER CONSTRUCTION AND ALSO AT VARIOUS STAGES IN THE PLANNING PROCESS.THERE ARE 13 PROJECTS THAT HAVE AN ESTIMATED/EXPECTED TOTAL OF 4,540,512 SQ.FT. OF SPACE.OF THESE, THERE ARE 7 PROJECTS THAT HAVE AROUND 75,000 FT.² OR MORE OF SPACE .THESE PROJECTS REPRESENT 96.6% OF THE TOTAL SQUARE FOOTAGE.•CONSTRUCTION TIMES ESTIMATED BY EMPIRE ECONOMICS (EE) TAKE INTO CONSIDERATION EXPECTED MARKET DEMAND •ACTUAL CONSTRUCTION AND MARKET–ENTRY WILL BE DETERMINED BY THE DEVELOPERS/PROPERTY OWNERS.• THE DISTRIBUTION OF THESE PROJECTS BY VARIOUS STAGES OF DEVELOPMENT/PLANNING APPROVALS ARE AS FOLLOWS:UNDER CONSTRUCTION – 2023-2024 2,410,461 SQ.FT.PLAN CHECK – EE ESTIMATED CONSTRUCTION: 2024-2025 : 840,634 SQ.FT.ENTITLEMENT REVIEW – EE ESTIMATED CONSTRUCTION: 2025-2026 1,289,417 SQ.FT.TOTAL SQUARE FEETPage 677 of 715 APPROXIMATE LOCATIONS OF NEAR-TERM AND FUTURE DEVELOPMENTFOR WAREHOUSE/DISTRIBUTION PROJECTS OVER ~75K SF181.2.3.45.6.7.8.PROJECTS UNDER CONSTRUCTION – ESTIMATED 2023-2024 (YELLOW ON MAP)1. 12434 4TH STREET: WAREHOUSE/DISTRIBUTION COMPLEX COMPRISED OF TWO BUILDINGS WITH 2,200,000 SQUARE FEET2. EAST SIDE OF PECAN SOUTH OF ARROW: 104,269 SQUARE FEET OF INDUSTRIAL/WAREHOUSE BUILDINGPROJECTS UNDER PLAN REVIEW – ESTIMATED 2024 2025 (WHITE ON MAP)3. N/O NAPA ST E/O ETIWANDA: TWO WAREHOUSE/DISTRIBUTION BUILDINGS TOTALING 651,000 SQUARE FEET; PROJECT INVOLVES GPA, ZMA, PREZONE, ANNEXATION 4. NWC OF JERSEY BLVD. AND MILLIKEN AVE. : 143,014 SQUARE-FOOT INDUSTRIAL/WAREHOUSEPROJECTS ENTITLEMENTS UNDER REVIEW – ESTIMATED 2025-2026 (RED ON MAP)5. SWC 9TH STREET AND VINEYARD AVENUE: WAREHOUSE/DISTRIBUTION COMPLEX COMPRISED OF 3 BUILDINGS ON VACANT LAND FOR 1,037,467 SQUARE FEET.6. NEC HERMOSA AND 4TH: TWO WAREHOUSE/DISTRIBUTION BUILDINGS TOTALING 91,369 SQUARE-FEET WITHIN THE NEO-INDUSTRIAL (NI) DISTRICT7. 13045 WHITTRAM: NEW SPEC INDUSTRIAL ~86,000 SQUARE FEET OF INDUSTRIAL/WAREHOUSE WITH 3,000 FEET OF OFFICE8. 9910 6TH STREET: TWO INDUSTRIAL/WAREHOUSE BUILDINGS TOTALING 74,387 SF Page 678 of 715 NEAR-TERM FORECAST FOR ADDITIONAL WAREHOUSE/DISTRIBUTION FOR RANCHO CUCAMONGA19THE NEAR-TERM W/D PROJECTS THAT ARE CURRENTLY UNDER CONSTRUCTION OR IN THE PLANNING PROCESS HAVE AN ESTIMATED 4,500,000 SQ.FT. THE TERM ABSORPTION UTILIZED HEREIN MEANS THAT THE SPACE IS FULLY CONSTRUCTED AND IS BEING UTILIZED FOR OPERATIONS BY A FIRM.EMPIRE ESTIMATES THAT ABSORPTION WILL COMMENCE IN LATTER 2023, FOLLOWED BY SIGNIFICANT LEVELS OF ABSORPTION IN 2024 AND 2025, WITH THE BALANCE IN 2026.EMPIRE ESTIMATED THE AMOUNT OF EMPLOYMENT THAT THE PROJECTS IN THE PLANNING PROCESS WILL GENERATE ABOUT 2,833 NEW JOBS.THE JOBS CREATED BY THE OPERATION OF FIRMS IN W/D FOLLOWS A SIMILAR PATTERN TO THEIR ABSORPTION.NEW JOB CREATION STARTS IN 2023, WITH AN EXPECTED PEAK LEVELS IN 2024 AND 2025, FOLLOWED BY THE REMAINING IN 2026.BUILDING SQ.FT. ABSORBED NEW EMPLOYMETNPage 679 of 715 RANCHO CUCAMONGA; FORECAST OF FUTURE DEMAND FOR ADDITIONAL WAREHOUSE/DISTRIBUTION 20EMPIRE FORMULATED A MOST PROBABLE FORECAST FOR FUTURE WAREHOUSE/DISTRIBUTION DEVELOPMENT FOR RANCHO CUCAMONGA (RC):1. EXPECTED DEMAND FOR FUTURE WAREHOUSE/DISTRIBUTION DEVELOPMENT IN THE IE, AS MEASURED BY BUILDING SQ.FT. OF FLOOR SPACE SOURCE: SCAG STUDY, ADJUSTED FOR RECENT GROWTH DUE TO COVID (+10%) AND OTHER EXPECTED CONDITIONS. 2. THE CAPTURE RATE OF THIS DEMAND BY RC, BASED UPON RECENT MARKET SHARES AS WELL AS NEAR-TERM W/D DEVELOPMENT. 3. ADJUSTED FOR HOW FURTHER AUTOMATION /OTHER TECHNOLOGY THAT MAY REDUCE THE AMOUNT OF FUTURE WAREHOUSE SPACE REQUIRED.SUCH ENHANCEMENTS ARE LIKELY TO PRIMARILY INCREASE THE VERTICALITY OF THE BUILDINGS.THE DEMAND FOR WAREHOUSE/DISTRIBUTION SPACE (SQ.FT.) IS FORECASTED TO INCREASE FROM 33M IN 2022 TO 41M IN 2040, BY ABOUT 24%TOTAL CURRENT AND FORECASTED SQAURE FEET (M)TOTAL CURRENT AND FORECASTED SQAURE FEET (M)Page 680 of 715 SECTION IIIBENEFIT/COST ANALYSIS OFWAREHOUSE/DISTRIBUTIONWITH THE DIRECT ECONOMIC COMPONENTSAND OTHER NON-ECONOMIC FACTORS21Page 681 of 715 COST/BENEFIT ANALYSIS OF POTENTIAL FUTURE DEVELOPMENT OF WAREHOUSE/DISTRIBUTIONECONOMIC COMPONENTS:• EMPIRE CONSIDERED SEVERAL APPROACHES FOR VALUING LAND USE, AND SELECTED THE MARKET VALUE PER SQ.FT. OF BUILDING SPACE. • THIS WAS APPLIED TO DIFFERENT LAND USES BASED ON THEIR RESPECTIVE CURRENT LEVELS OF RENTS AND VACANCY RATES.22CURRENT PROPERTY VALUE NOI (NET OPERATINGINCOME)=CAP RATE (RATE OF RETURN ON A REAL PROPERTY)=MONTHLY LEASE RATE PSF12(1- VACANCY)XX(1- EXPENSES)XOTHER NON-ECONOMIC COMPONENTS:• THE ECONOMIC COMPONENT DISCUSSED ABOVE DOES NOT ACCOUNT FOR OTHER VARIABLES THAT MAY BE OF INTEREST TO THE CITY:AVERAGE WAGE BY ECONOMIC SECTORS WAGE GROWTH POTENTIAL FOR THE SECTORWHERE WORKERS IN EACH SECTOR TYPICALLY RESIDE: - WITHIN CITY OR ELSEWHERE, DEPENDS UPON AFFORDABILITY OF HOUSING HOW MUCH DOES EACH LAND USE POTENTIALLY BENEFIT THE CITY - MARKET VALUES & PROPERTY TAXESSALES TAX ELIGIBLE- DOES THE LAND USE GENERATE SALES TAX IMPACT OF REMOTE WORK: CURRENTLY AND FUTURE EXPECTATIONSNEGATIVE IMPACTS OF AUTOMATION ON WORKERSPOSITIVE EXTERNALITIES – BENEFITS OF THIS SPACE UTILIZATION FOR A PARTICULAR LAND USE NEGATIVE EXTERNALITIES, TRAFFIC CONGESTION, NOISE AND HEALTH IMPAIRMENTSPage 682 of 715 PROS AND CONS OF THE WAREHOUSE/DISTRIBUTION MARKET IN THE INLAND EMPIRE23PROS• LABOR MARKET IS FULLY RECOVERED WITH 316,000 JOBS BEING CREATED WHICH EXCEEDS THE JOBS LOST DUE TO THE PANDEMIC, INCLUDING SIGNIFICANT LOSSES IN THE W/D SECTOR. • FROM FEB’20 TO OCT’22 THE INLAND EMPIRE’S WORK FORCE ROSE BY +3.6% VS. CALIFORNIA DECLINED BY -1.3%• FROM Q1 2021 TO Q1 2022 WAGE GROWTH IN THE INLAND EMPIRE HAS BEEN +4.6% VS. +1.0% FOR CALIFORNIA.• WAGE GROWTH IN SAN BERNARDINO COUNTY WAS +5.2%• WAGE GROWTH IN RIVERSIDE COUNTY WAS +3.9%• INLAND EMPIRE WAREHOUSE SPACE HAS THE LOWEST VACANCY LEVELS OF 1.4%• ASKING RENTS IN RECENT YEARS ROSE SIGNIFICANTLY• W/D SPACE IN THE INLAND EMPIRE IS MORE EXPENSIVE THANSIMILAR SPACE IN ORANGE COUNTY AND SAN DIEGO COUNTY CONS• FUTURE W/D EMPLOYMENT GROWTH RISK - DUE TO AUTOMATION • PER THE INSTITUTE OF SPATIAL ECONOMICS, 75% OF JOBS IN THE LOGISTICS INDUSTRY ARE AT RISK • UCLA ANDERSON EXPECTS LIMITED EMPLOYMENT GROWTH IN WAREHOUSES/TRANSPORTATION GOING FORWARD • POLLUTION - IS A CONCERN FOR THE INLAND EMPIRE • RESIDENTS IN CLOSE PROXIMITY TO W/D HAVE HIGHER HEALTH RISKS• TRAFFIC – IT IS ESTIMATED THAT CITY OF RANCHO CUCAMONGA HAS 32,000 TRUCKS A DAY. • NOISE – THERE IS SIGNIFICANT NOISE Page 683 of 715 SECTION IVCOMPARISON OF THE BENEFITS/COSTSFOR POTENTIAL LAND-USESWITH THEDIRECT ECONOMIC COMPONENTSAND OTHER NON-ECONOMIC FACTORS24Page 684 of 715 RANCHO CUCAMONGA’S PRIMARY EMPLOYMENT INDUSTRIAL AND WAREHOUSE/DISTRIBUTION’S ECONOMIC BASE IS WELL ESTABLISHED IN THE SOUTHERN PART OF THE CITY.FURTHERMORE, THIS AREA HAS CHARACTERISTICS THAT PROVIDE SUPPORT FOR FUTURE W/D DEVELOPMENT:* ESTABLISHED INDUSTRIAL AND W/D BUILDINGS * EASY ACCESS TO THE I-10 AND 1-15* LARGE PARCELS THAT CAN ACCOMMODATE W/D CENTERSUNDEVELOPED AS WELLUNDERDEVELOPED PARCELS THAT MAY BE REUTILIZED(OLDER BUILDINGS W/O NEWER TECHNOLOGY)HISTORICALLY, INDUSTRIAL SPACE WAS LOCATED NEXT TO OTHER INDUSTRIAL SPACE.BUT COMMERCIAL SPACE SUCH AS RETAIL AND OFFICE AS WELL AS MEDIUM DENSITY RESIDENTIAL HAS AND WILL CONTINUE TO SERVE AS A BUFFER ALONG ITS PERIMETER. 25RANCHO CUCAMONGA GEOGRAPHICAL DEVELOPMENT PATTERNS FOR VARIOUS LAND USES Page 685 of 715 METHODOLOGY UNDERLYING THE COST/BENEFIT ANALYSIS FOR WAREHOUSE/DISTRIBUTION AS COMPARED TO ALTERNATIVE LAND USES • EMPIRE HAS COMPILED BOTH QUANTIFIABLE DATA POINTS AND QUALITATIVE INFORMATION/DATA TO COMPARE AND CONTRAST THE ECONOMIC BENEFITS AND NON-ECONOMIC IMPACTS (EXTERNALITIES) OF VARIOUS LAND USES: RETAIL, OFFICE AND MULTIFAMILY./APARTMENTS.• IN PERFORMING THIS ANALYSIS EMPIRE WAS REQUIRED TO COMPILE/RECONCILE DATA FROM VARIOUS SOURCES INCLUDING ACTUAL SALES VALUES OF DIFFERENT LAND USE PARCELS WITHIN THE IE AND THE CITY OF RC, AND THEN FORMULATE AN ECONOMIC MODEL UTILIZING VARIOUS ASSUMPTIONS.• EMPIRE STRONGLY RECOMMENDS THAT THE CONCLUSIONS SET-FORTH IN THE FOLLOWING TABLE BE UTILIZED AS GENERALIZED GUIDELINES FOR CONSIDERING POLICIES; AND CAUTIONS THAT EACH PROPOSED PROJECT BE EVALUATED TO TAKE INTO CONSIDERATION ITS SPECIFIC CHARACTERISTICS.PLEASE REFER TO THE FOLLOWING TABLE AND GRAPHS FOR ADDITIONAL INFORMATION. 26Page 686 of 715 COST/BENEFIT ANALYSIS OF WAREHOUSE/DISTRIBUTION AND OTHER POTENTIAL LAND-USES27Page 687 of 715 • ALTHOUGH THERE MAY BE POTENTIAL FOR THE DEVELOPMENT ALTERNATIVE LAND USES, SUCH AS OFFICE, RETAIL AND MULTIFAMILY, THEIR DEVELOPMENT POTENTIAL, AS MEASURED BY ECONOMIC METRICS, ARE CURRENTLY NOT AS FAVORABLE28OVERVIEW OF CURRENT MARKET CONDITIONS FOR WAREHOUSE/DISTRIBUTIONAND ALTERNATIVE POTENTIAL LAND USES: RETAIL, OFFICE AND MULTIFAMILY/APARTMENTS RENTS PER SQ.FT. - MONTHLYEMPLOYEE SALARIES - ANNUALLYEMPLOYEES/RESIDENTS PER ACREVACANCY RATEPage 688 of 715 THE CURRENT AND FUTURE STATE OF WAREHOUSE/DISTRIBUTIONECONOMIC, ENVIRONMENTAL AND OPPORTUNITY COST IMPACTSAPPENDIX29EMPIRE ECONOMICS LEVERAGED A VARIETY OF MARKET DATA SOURCES (VOIT, CBRE, KIDDER MATHEWS, ETC), UNIVERSITY/GOVERNMENT PUBLICATIONS (UCR/SCAG/EPA), CONSULTANT RESEARCH REPORTS (DELOITTE) AND VARIOUS PRESS ARTICLES (LA TIMES/REDANDS DAILY, ETC.) WITH REPORTING ON CRITICAL ITEMS TO NAME A FEW.Page 689 of 715 • THE SCOPE OF RESEARCH FOR THIS TOPIC COULD BE EXTREMELY BROAD, SO EMPIRE NARROWED IT DOWN TO THE FOLLOWING PARAMETERS:A FOCUS ON W/D WORKERS AND SPACE BASED ON APN DATA FROM THE CITY.ONLY LOOKING AT THE HISTORY OF W/D SPACE, TYPICALLY KNOWN AS INDUSTRIAL SPACE EMPIRE ACKNOWLEDGES THERE ARE MANY OTHER CITIES WITH LARGE AMOUNTS OF W/D SPACEREMAIN OBJECTIVE IN REPORTING POSITIVE AND NEGATIVE EXTERNALITIES ASSOCIATED WITH THE W/D SPACE• THE CONCEPT OF OPPORTUNITY COST FOR POTENTIAL LAND UTILIZATION FROM A QUANTITATIVE AND QUALITATIVE PERSPECTIVE IS IMPORTANT FOR THE CITY TO UNDERSTAND WHAT ELSE CAN BE ON THE LAND WITH POTENTIAL COSTS/BENEFITS. TRANSPORTATION/INDUSTRIAL SPACE – CURRENT USERETAIL – A VARIETY OF CENTER TYPES OFFICE – EMPIRE WAS ABLE TO UTILIZE SOME RESEARCH PERFORMED FOR A PRIOR STUDY MULTIFAMILY – EMPIRE FOCUSED ON MULTIFAMILY AS MORE LIKELY TO BE INFILL VS. SINGLE FAMILY RESIDENTIAL• EMPIRE USED THE RESEARCH TO NARROW DOWN TRENDS AND POTENTIAL OPTIONS TO SHAPE ECONOMIC DEVELOPMENT IN THE CITY.EMPIRE FOCUSED ON POTENTIAL ZONING AND ECONOMIC INCENTIVES.THE OTHER TREND FROM THE RESEARCH WAS CITIES INSTITUTING “MORATORIUMS” OR “BANS ON NEW INDUSTRIAL SPACE”. HOWEVER, THESE BANS ARE VERY COMPLEX IN THEIR NATURE AND DO APPLY UNIFORMLY TO ALL PROJECTS AND ARE REALLY A NEGOTIATING TACTIC/STRATEGY TO SHAPE FUTURE DEVELOPMENT APPENDIX: SCOPE OF RESEARCH30Page 690 of 715 APPENDIX SCOPE OF RESEARCH: KEY SOURCE LIST31https://www.sbsun.com/2022/10/13/warehouses-pose-a-dilemma-for-the-inland-empire/amp/https://www.kcet.org/the-empire-of-logistics-goods-movement-in-southern-californiahttps://www.pressenterprise.com/2021/10/20/what-is-the-future-of-warehouses-in-the-inland-empire/https://www.bloomberg.com/news/articles/2021-06-14/california-launches-new-war-on-warehouse-pollutionhttps://www.bloomberg.com/news/articles/2022-08-15/los-angeles-warehousing-mecca-halts-expansion-just-as-needs-soarhttps://news.ucr.edu/articles/2022/12/21/pandemic-left-behind-inland-empire-economy-flourished-2022https://news.ucr.edu/articles/2022/09/22/inland-empire-business-activity-growth-contrasts-national-declinehttps://www.lung.org/research/sota/key-findings/most-polluted-placeshttp://www.laalmanac.com/environment/ev01a.phphttps://www.epa.gov/air-trends/air-quality-cities-and-countieshttps://www.pressenterprise.com/2021/09/29/inland-empire-is-warehouse-central-but-how-did-it-happen/https://www.latimes.com/california/story/2023-02-05/warehouses-big-rigs-fill-inland-empire-streetshttps://scag.ca.gov/sites/main/files/file-attachments/task4_understandingfacilityoperations.pdfhttps://www.cityofrc.us/sites/default/files/2021-01/PlanRC_ExistingConditionsReport_LandUse_December2020_0.pdfhttps://www.latimes.com/california/story/2023-02-05/warehouses-big-rigs-fill-inland-empire-streetshttps://www.redlandsdailyfacts.com/2023/02/22/ban-on-new-warehouses-considered-by-redlands-city-council/https://www.redlandsdailyfacts.com/2023/02/22/ban-on-new-warehouses-considered-by-redlands-city-council/https://www2.deloitte.com/us/en/insights/industry/financial-services/commercial-real-estate-outlook-2021.htmlPage 691 of 715 APPENDIX PART I.) HISTORICAL DEVELOPMENT OF THE WAREHOUSE/DISTRIBUTION MARKET IN THE INLAND EMPIRE32Page 692 of 715 APPENDIX PART I.) LARGEST EMPLOYERS IN SAN BERNARDINO COUNTY 33Sourcehttps://news.ucr.edu/articles/2022/12/21/pandemic-left-behind-inland-empire-economy-flourished-2022Page 693 of 715 APPENDIX PART I.) IMPACT OF COVID-19 ON WAREHOUSING FROM DATADEX341. THE NEED TO KEEP MORE INVENTORY ON HAND EXPANDED THE USE OF SAFETY STOCK.2. PANDEMIC-FORCED LOCKDOWNS SPURRING THE ACCELERATION OF ONLINE SHOPPING, E-COMMERCE AND LAST MILE DELIVERY AND DRAMATICALLY IMPACTED WAREHOUSE OPERATIONSNO, IT IS NOT YOUR IMAGINATION. THE USE OF ONLINE SHOPPING HAS DRAMATICALLY INCREASED. IN FACT, FORBES ESTIMATES THAT COVID ACCELERATED THE GROWTH OF E-COMMERCE APPROXIMATELY 4 TO 6 YEARS. BECAUSE MANY WAREHOUSES WERE ONLY HANDLING GOODS BY THE PALLET, IT HAS BEEN A SIGNIFICANT CHANGE AND ADDED COST TO ADOPT THE NEEDED PROCESSES AND TECHNOLOGY TO BE ABLE TO SERVICE PICK AND PACK OPERATIONS NEEDED FOR D2C E-COMMERCE ORDER FULFILLMENT.3. INVENTORY VISIBILITY TAKES CENTER STAGE4. LABOR SHORTAGES AND SOCIAL DISTANCING REQUIREMENTS BOLSTERED ADOPTION OF TECHNOLOGY SOLUTIONS5. ESCALATION IN NEED FOR MORE COLD STORAGE WAREHOUSESCONCLUSIONGLOBAL SUPPLY CHAINS CERTAINLY TOOK A HIT DURING THE COVID-9 PANDEMIC. THE IMPACT OF THE CORONAVIRUS WAS WIDESPREAD, AFFECTING ISSUES FROM HUMAN CAPITAL TO DELIVERY CHARGES. BECAUSE THE WORLD IS STILL EARLY IN THE DIGITAL TRANSFORMATION OF SUPPLY CHAINS AND DISTRIBUTION NETWORKS. THE LOGISTICS AND SUPPLY CHAIN CHALLENGES WERE HIGHLY DISRUPTIVE, ESPECIALLY AS SOME DISTRIBUTION CENTERS AND WAREHOUSES HAVE BEEN SLOW TO ADOPT TECHNOLOGIES AND STILL LARGELY OPERATE MANUALLY.THE IMPACT ON WAREHOUSES IS STILL BEING FELT TODAY AND IS HAVING A TRANSFORMATIVE EFFECT ON THE SUPPLY CHAIN INDUSTRY. WHETHER IT STARTED WITH THE DISRUPTION IN THE SUPPLY CHAINS OF PROTECTIVE EQUIPMENT OR WAS RELATED TO THE E-COMMERCE BOOM, JOB LOSS, CHANGES IN FREIGHT TRANSPORTATION, CHANGING PUBLIC HEALTH ADVISORIES FOR BUSINESSES OR SOME OTHER REASON, MUCH OF THE CHANGE IS HERE TO STAY.CONSUMERS MUST BE ABLE TO COUNT ON SUPPLY CHAINS, NOT ONLY FOR ESSENTIAL ITEMS LIKE FOODS, MEDICINE, PERSONAL PROTECTIVE EQUIPMENT, AND HAND SANITIZER, BUT FOR EVERYDAY GOODS THAT BRING THEM COMFORT, SATISFACTION AND EVEN JOY.LOOKING AT THIS FROM THE PERSPECTIVE OF A GLASS HALF FULL, PERHAPS THE IMPACT OF THE CORONAVIRUS WAS POSITIVE IN THAT IT DEMONSTRATED THAT COMPLEX PROBLEMS COULD ARISE AND BE SOLVED, AT TIMES BY CLOSE COLLABORATION AND PROBLEM SOLVING AS WELL AS BY THE ADOPTION OF NEW STRATEGIES AND INNOVATIVE EMERGING TECHNOLOGIES. FROM ARTIFICIAL INTELLIGENCE TO MOBILE ROBOTS, MATERIAL HANDLING EQUIPMENT, AND SOPHISTICATED MANAGEMENT SYSTEMS, SUPPLY CHAINS, WAREHOUSES AND DISTRIBUTION CENTERS CAN BE MADE MORE RESILIENT, DEFENSIBLE AGAINST CYBERSECURITY ATTACKS, AND EFFICIENT WITH EMERGING TECHNOLOGIES. FOR INSTANCE, MATERIAL HANDLING EQUIPMENT AND MOBILE ROBOTS CAN COMPENSATE FOR DIMINISHING HUMAN CAPITAL WHEN WORKERS MUST BE SIDELINED DUE TO ILLNESS, POTENTIALLY SAVING LIVES. .Sourcehttps://www.datexcorp.com/impact-of-covid-19-on-warehousing-and-the-supply-chain/Page 694 of 715 APPENDIX PART I.) IMPACT OF COVID-19 ON WAREHOUSING FROM DATADEX351. CONTINUED SOCIAL DISTANCING2. KEEPING MORE INVENTORY ON HAND 3. INCREASED USE OF WAREHOUSE AUTOMATION4. RESHORING/NEARSHORING MANUFACTURING5. SCALABLE PROCESSES & PICKING STRATEGIES6. MORE WORK-IN-PROCESS (WIP) INVENTORY7. INCREASED WAREHOUSE CAPACITY8. SMALLER DECENTRALIZED WAREHOUSE LOCATIONS9. GREATER RELIANCE ON 3PL DISTRIBUTION NETWORKS10. SHORTER WAREHOUSE/3PL CONTRACTS11. ACCELERATED GROWTH OF E-COMMERCEWHILE THE COVID PANDEMIC DIDN’T START THE E-COMMERCE BOOM, IT IS CERTAINLY RESPONSIBLE FOR THE RECENT SURGE IN DEMAND. COVID CATAPULTED E-COMMERCE AHEAD 2 YEARS IN ONLY 10 MONTHS; REALIZING PROJECTED 2022 RESULTS IN 2020 FOR A TOTAL OF $4.28 TRILLION IN GLOBAL E-COMMERCE SALES IN 2020. WAREHOUSE AND DISTRIBUTION CENTERS AREN’T NEW TO E-COMMERCE, BUT THE RAPID INCREASE IN DEMAND HAS MOST STRUGGLING TO KEEP UP.12. EMBRACING OMNI-CHANNEL DISTRIBUTION13. MICRO-DISTRIBUTION FROM STOREAS CUSTOMERS DEMAND FASTER SHIPMENTS, RETAIL BUSINESSES WILL LOOK TO LEVERAGE EXISTING BRICK AND MORTAR LOCATIONS AS MINI-DISTRIBUTION CENTERS. THEY WILL AIM TO BUILD A LARGER DISTRIBUTION NETWORK WITHOUT A LARGE INVESTMENT. EQUIPPING EXISTING RETAIL STORE LOCATIONS WITH DISTRIBUTION CAPABILITIES CAN BE MORE COST EFFECTIVE THAN PARTNERING.14. NEW IMPORTANCE ON INVENTORY VISIBILITY15. INCREASE IN COLD STORAGEIN SUMMARYAS WE SETTLE INTO OUR POST-COVID LIVES THE ONLY THING THAT IS CERTAIN IS THAT NOTHING IS CERTAIN. COMPANIES ARE CREATING BACK UP PLANS FOR THEIR BACK UP PLANS. WITH AN UNPREDICTABLE FUTURE, WAREHOUSE AND DISTRIBUTION CENTERS WILL LOOK TO BE AS ADAPTABLE AND FLEXIBLE AS POSSIBLE. THEIR MAIN FOCUS WILL BE ON HOW TO BEST UTILIZE SPACE AND EFFICIENTLY MANAGE THEIR BIGGEST EXPENSE - LABOR.Sourcehttps://us.blog.kardex-remstar.com/15-ways-covid-changing-warehousingPage 695 of 715 36APPENDIX PART II.) RECENT SALES COMPS FOR RC METHODOLOGY• EMPIRE ANALYZED RECENT SALES FOR LARGER INDUSTRIAL, OFFICE, RETAIL AND MULTIFAMILY PROPERTIES WITHIN THE INLAND EMPIRE AND A SUBSET OF CITIES WITHIN RC, FONTANA, ONTARIO AND RIALTO TO COME UP WITH A PSF VALUE • PLEASE NOTE THAT EMPIRE FOCUSED ON THE SALES DATA FOR INDUSTRIAL FROM 2019-2022 AND FOR THE OTHER ASSET CLASSES 2021-2022• THE PRICE OF INDUSTRIAL PSF HAS RISEN SINCE 2019 Page 696 of 715 APPENDIX PART II.) WAREHOUSE/DISTRIBUTION – WHOLESALE – MANUFACTURING SPACE PER WORKER IN THE RC37THE CITY OF RC HAS SEEN A LARGE AMOUNT OF GROWTH IN ITS WAREHOUSE/DISTRIBUTION SPACE BUT NOT AN EQUAL INCREASE IN EMPLOYMENT. • BASED ON APN DATA, EMPIRE ESTIMATES THAT THERE WAS 26.4M SQUARE FEET OF WAREHOUSE DISTRIBUTION SPACE IN 2010 AND CLOSE TO 33.8M SQUARE FEET IN 2022 OR A PERCENT GROWTH OF SOME 28%• THE AMOUNT OF WORKERS INCREASED FROM 11,170 WORKERS TO 15,092 WORKERS WITH THERE BEING A QUICKY RECOVERY FROM OVID FOR A % GROWTH OF SOME 35%• PLEASE NOTE THAT THE AMOUNT OF WORKERS PER SPACE WAS DECREASING FROM 2014 TO 2019 THEN INCREASED DUE TO COVID-19 AND IS SLIGHTLY DECREASING, REFLECTING VARIOUS TECHNOLOGY NEEDS AND SPACE DESIGNSPage 697 of 715 APPENDIX PART II.) LOCATION OF VACANT INDUSTRIAL SPACE FOR THE RANCHO CUCAMONGA MARKET THE OVERALL VACANCY RATE FOR THE INDUSTRIAL OR WAREHOUSE/TRANSPORTATION MARKET PER VARIOUS SOURCES IS BETWEEN 1.1% (CBRE) TO 1.61% (VOIT).• PLEASE NOTE THAT THE VACANCY RATE FOR THE INLAND EMPIRE HAS COME DONE FROM 2008 AFTER “THE GREAT RECESSION” FROM LEVELS OF CLOSE TO 12% TO HISTORIC LOWS TODAY.• CURRENTLY, DUE TO RANCHO CUCAMONGA’S PRIME LOCATION OFF THE 1-15 AND BY THE 1-10, SPACE IS AT A PREMIUM WITH LITTLE VACANCY..• I-15 IS A MAJOR WEST TO EAST CORRIDOR THAT GOES NORTH THROUGH THE WESTERN HALF OF THE US.• THE I-10 IS A MAJOR WEST TO EAST CORRIDOR AS WELL..38-------------------------THE VACANCIES ARE LOCATED INTERSPERSED IN THE SOUTHERN PART OF THE CITY AND ARE GENERALLY SMALLER SQUARE FOOTAGE SPACES.Page 698 of 715 APPENDIX PART II) CITY OF RANCHO CUCAMONGA CURRENT PLAN39Page 699 of 715 APPENDIX PART III.) POTENTIAL IMPACTS OF TECHNOLOGICAL CHANGE (AUTOMATION/GREEN TECHNOLOGY) ON THE WAREHOUSE/DISTRIBUTION MARKETS40Source:https://www.inboundlogistics.com/articles/warehouse-automation-growing-but-for-how-long/Page 700 of 715 APPENDIX PART III.) AMAZON’S RECENT WAREHOUSE: 4M SQUARE FEET FOR 1,500 WORKERS41ONTARIO, CALIF. - AMAZON IS OPENING ONE OF ITS LARGEST WAREHOUSES IN THE INLAND EMPIRE. THE FACILITY, LOCATED AT THE MERRILL COMMERCE CENTER IN ONTARIO, WILL BE COMPLETED IN 2024, AND THE TOTAL SQUARE FOOTAGE IS OVER 4 MILLION SQ. FT., MAKING IT ONE OF THEIR LARGEST BUILDINGS.IT WILL EMPLOY OVER 1,500 PEOPLE.AMAZON OFFICIALS SAY THE COMPANY HAS INVESTED MORE THAN $19.3 BILLION IN THE INLAND EMPIRE AND $81 BILLION IN CALIFORNIA SINCE 2010. ACCORDING TO A RECENT COMPANY REPORT, AMAZON CREATED OVER 40,000 JOBS IN THE INLAND EMPIRE AND AMAZON’S INVESTMENTS IN THE REGION LED TO THE CONTRIBUTION OF MORE THAN $15.4 BILLION TO THE ECONOMY OVER THE LAST DECADE.PAUL GRANILLO, PRESIDENT AND CEO OF INLAND ECONOMIC PARTNERSHIP, SAYS AMAZON’S INVESTMENT IN THE INLAND EMPIRE HELPED THE REGION BECOME A ‘NATIONAL LEADER IN THE GOODS MOVEMENT INDUSTRY’."THE MORE THAN 40,000 JOBS CREATED BY AMAZON, ALLOWED THE INLAND EMPIRE TO WEATHER THE ECONOMIC DOWNTURN BETTER THAN OUR NEIGHBORING COUNTIES. MORE IMPORTANTLY, IT PROVIDES OUR RESIDENTS WITH LOCAL EMPLOYMENT OPPORTUNITIES NEGATING THE NEED FOR MULTI-HOUR DAILY COMMUTES. THESE EFFORTS, PROVIDE ECONOMIC OPPORTUNITY NOW BUT ALSO POSITION OUR REGION FOR THE FUTURE," GRANILLO SAID IN A STATEMENT. AMAZON IS ALSO OPENING A FULFILMENT CENTER IN VICTORVILLE AND ONTARIO. EACH LOCATION WILL EMPLOY OVER 1,000 PEOPLE. Page 701 of 715 APPENDIX III.) POTENTIAL EMISSION RAMIFICATIONS 42Sourcehttps://scag.ca.gov/sites/main/files/file-attachments/task5_developingpolicyevaluation.pdf?1604268239Page 702 of 715 APPENDIX PART III.) FORECAST OF FUTURE DEMAND FOR ADDITIONAL WAREHOUSE/DISTRIBUTION 43Page 703 of 715 44APPENDIX PART III.) FUTURE IMPACT OF AUTOMATION IN RANCHO CUCAMONGA THERE IS A WIDE VARATION OF AUTOMATION TECHNOLOGIES THAT CAN BE ADOPTED BY EMPLOYERS IN CONJUNCTION WITH MODIFICATION TO THE BUILDING SIZE/LAYOUT (INCREASED CEILINGS/CROSS DOCK, ETC.), TO AUTOMATE ONE OF MANY TASKS THAT TAKE PLACE IN A WAREHOUSE. HOWEVER, NOT ALL EMPLOYERS WILL HAVE THE CAPITAL OR ABILITY DUE TO THE SIZE/WEIGHT OF ITEMS TO ADOPT THIS TECHNOLOGY TO THEIR CURRENT WAREHOUSES, AS ONLY CERTAIN TECHNOLOGIES CAN BE EASILY DEPLOYED POST BUILDING CONSTRUCTION. RESEARCH SHOWS THAT AUTOMATION HAS NOT ALWAYS REDUCED THE AMOUNT OF WAREHOUSE JOBS, IT HAS OFTEN LEAD TO THE INTENSIFICATION OF JOBS, DESKILLING EXISTING JOBS, CHANGING HOW EMPLOYEES ARE MANAGERD AND MAY NOT LEAD TO EXISITING JOB LOSS. AUTOMATION WILL MANIFEST ITSELF IN LESS FUTURE EMPLOYEES BEING HIRED POTENTIALLY FOR FUTURE BUILDINGS UNDER CONSTRUCTION, DEPENDING ON HOW MUCH A SPECIFIC COMPANY INVESTS IN TECHNOLOGY. IMPACT OF NEW TECNOLOGY ON WAREHOUSE JOBS1. NEW TECHNOLOGIES ARE LIKELY TO LEAD TO WORK INTENSIFICATION.2. NEW TECHNOLOGIES HAVE THE POTENTIAL TO DE-SKILL SOME JOBS.3. NEW TECHNOLOGIES ARE POISED TO TRANSFORM HOW WORKERS ARE MANAGED.4. IN THE SHORT TO MEDIUM TERM, NEW TECHNOLOGIES LIKELY WILL NOT CAUSE WIDESPREAD JOB LOSS.5. TECHNOLOGY IS LIKELY TO HAVE UNEVEN IMPACTS ACROSS DEMOGRAPHICS AND OCCUPATIONS.TECHNOLOGICAL GAINS —INCLUDING BUT NOT LIMITED TO THOSE THAT MAY DE-SKILL AND INTENSIFY WORK—APPEARS TO BE LED BY THE WIDESPREAD DESIRE TO COMPETE WITH AMAZON AND OTHER MAJOR ONLINE RETAILERSPage 704 of 715 APPENDIX PART III). AIR POLLUTION RISK 45Sourcehttps://www.lung.org/research/sota/key-findings/most-polluted-placeshttp://www.laalmanac.com/environment/ev01a.phphttps://www.epa.gov/air-trends/air-quality-cities-and-countiesPage 705 of 715 APPENDIX PART IV.) CITY’S VISION46Page 706 of 715 1 CITY OF RANCHO CUCAMONGA RECENT/EXPECTED EMPLOYMENT/HOUSING TRENDS/PATTERNS IMPACTS OF THE FEDERAL RESERVE GOAL OF 2% INFLATION AND BENEFITS/COSTS OF WAREHOUSE/DISTRIBUTION FACILITIES *PRESENTATION TO CITY COUNCIL –JULY 19, 2023* PREPARED BY EMPIRE ECONOMICS, INC. JOSEPH T. JANCZYK, PH.D. ORIGINAL STUDY DATE: APRIL 17, 2023 (JUNE 2023 –UPDATES TO FED POLICIES, EMPLOYMENT AND WAREHOUSE MARKET CONDITIONS) SECTION I THE RESIDENTIAL MARKET HIGH MORTGAGE RATES CAUSING SLUGGISH FOR-SALE HOMES, WHILE APARTMENTS STRONG 9 RANCHO CUCAMONGA –HOUSING INVENTORY (SUPPLY) AND PENDING LISTINGS (DEMAND) (2018 –2023 YTD) FOR 2018-2020, THE LEVEL OF FOR-SALE HOMES/INVENTORY WAS HIGHER THAN DEMAND/SALES, NORMAL CONDITIONS 3 FOR 2022 –MAY 2023, THERE WERE DECLINES IN DEMAND (AFFORDABILITY) AND SUPPLY DECREASED (SLOW SALES) DUE TO HIGHER MORTGAGE RATES 0 100 200 300 400 500 600 RANCHO CUCAMONGA PENDING LISTINGS AND INVENTORY (2022-2023 BY MONTH)RANCHO CUCAMONGA PENDING LISTINGS (DEMAND) AND INVENTORY (SUPPLY) BY MONTH, NOT SEASONALLY ADJUSTED (2022-2023 YTD) DEMAND SUPPLY 0 100 200 300 400 500 600 RANCHO CUCAMONGA PENDING LISTINGS AND INVENTORY (ANNUAL AVERAGE ACROSS 2018, 2019, AND 2020)RANCHO CUCAMONGA PENDING LISTINGS (DEMAND) AND INVENTORY (SUPPLY) BY MONTH, NOT SEASONALLY ADJUSTED (2018-20) 2018-2020 DEMAND/AVG 2018-2020 SUPPLY/AVG TYPICAL SUPPLY: ANNUAL AVERAGE ACROSS 2018, 2019 AND 2020 TYPICAL DEMAND: ANNUAL AVERAGE ACROSS 2018, 2019 AND 2020 SUPPLY SUPPLY DEMAND DEMAND 4 SALES OF EXISTING/NEW HOMES IN RANCHO CUCAMONGA SINGLE-FAMILY DETACHED AND ATTACHED, 2000-2022 •SALES OF EXISTING/NEW SINGLE FAMILY HOMES DECLINED FROM 1,509 IN 2021 TO 1,068 IN 2022,A RECORD LOW •SALES OF ATTACHED HOMES DECLINED FROM 391 IN 2021 TO 315 IN 2022,THE LOWEST SINCE 2013 •THESE DECLINES CAN BE ATTRIBUTED TO HIGHER MORTGAGE RATES o EXISTING HOMEOWNERS WANT TO KEEP THEIR HISTORICALLY LOW MORTGAGE RATES o PURCHASERS OF HOMES FACE HIGHER NEW MORTGAGE RATES 2,346 2,552 3,015 3,104 2,859 2,863 2,015 1,338 1,494 1,569 1,577 1,192 1,228 1,470 1,361 1,582 1,519 1,478 1,338 1,320 1,427 1,509 1,068 3904384805778379836294744105354352942693483483403303943213193553913150 500 1,000 1,500 2,000 2,500 3,000 3,500 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 RANCHO CUCAMONGA: SINGLE FAMILY DETACHED AND ATTACHED HOUSING SALES Sales - Single Family Detached Sales - Attached RANCHO CUCAMONGA –ANNUAL HOUSING PAYMENTS BY MONTH (JAN. 2018 –DEC. 2024 FORECAST) ANNUAL HOUSING PAYMENTS = MORTGAGE PRINCIPAL + MORTGAGE INTEREST + PROPERTY TAXES 5 E. DECEMBER 2024: IF CURRENT HOUSING PRICES DECLINED BY -8% AND MORTGAGE RATES DECLINED TO 4.5% BY DECEMBER 2024, THE PAYMENT WOULD FALL TO $38K A. 2019-2020: LOWER RATES OFFSET HOUSING APPRECIATION PAYMENT ~$38K IN 2018 B. 2021: RISING PRICES AND STABLE RATES DROVE PAYMENTS HIGHER. C. EARLY 2022: HIGHER PRICES AND MORTGAGE RATES DROVE PAYMENTS EVEN HIGHER ANNUAL HOUSING PAYMENT LEVELS D. MID-LATER 2022: FALLING PRICES OFFSET BY RISING MORTGAGE RATES AS PAYMENTS GO EVEN HIGHER, $51,000 …………..A…………….|….B….|..C…|..D..|……..….…......E A B C D E A B C D E ANNUAL HOUSING PAYMENT LEVELS (CON’T.) $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 1/1/20185/1/20189/1/20181/1/20195/1/20199/1/20191/1/20205/1/20209/1/20201/1/20215/1/20219/1/20211/1/20225/1/20229/1/20221/1/20235/1/20239/1/20231/1/20245/1/20249/1/2024ANNUAL HOUSING PAYMENT AMOUNTS (IN 2023 $)RANCHO CUCAMONGA (JAN. '18 -DEC. '24-F) -ESTIMATED ANNUAL HOUSING PAYMENT COMPONENTS (MORTGAGE INTEREST + MORTGAGE PRINCIPAL + PROPERTY TAXES) (IN 2023 WAGE $ DOLLARS) PROPERTY TAX MORTGAGE-PRINCIPAL MORTGAGE-INTEREST MORTGAGE INTEREST RATES MORTGAGE PRINCIPAL (HOUSING PRICE APPRECIATION) PROPERTY TAXES (HOUSING PRICE APPRECIATION)EMPIRE ECONOMICS APR. 2021 APR. 2023 ~$38K ~$51K ~$38K + ~34% 6 RECENT TRENDS FOR OVERALL RENTS AND ALSO A NEW APARTMENT PROJECT $2,499 $2,808 $3,199 $3,295 $3,799 $3,955 $4,898 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 776 825 1,046 1,142 1,438 1,680 2,349 RANCHO CUCAMONGA NEW ACTIVE APARTMENT PROJECT HOMECOMING AT THE RESORT $0 $250 $500 $750 $1,000 $1,250 $1,500 $1,750 $2,000 $2,250 $2,500 $2,750 $3,000 3/1/15 9/1/15 3/1/16 9/1/16 3/1/17 9/1/17 3/1/18 9/1/18 3/1/19 9/1/19 3/1/20 9/1/20 3/1/21 9/1/21 3/1/22 9/1/22 APARTMENT RENT TRENDS RANCHO CUCAMONGA & SAN BERNARDINO COUNTY Rancho Cucamonga San Bernardino County RANCHO CUCAMONGA RENTS FOR EXISTING APARTMENTS ROSE FROM $1,750 IN 2015 TO A PEAK OF $2,750 IN 2022, BUT HAVE RECENTLY DECLINED SLIGHTLY RANCHO CUCAMONGA RENTS FOR NEW APARTMENTS ARE SIGNIFICANTLY HIGHER DUE TO NEW CONSTRUCTION AS WELL AS MANY AMENITIES 7 •MARKET DEMAND IS ESTIMATED BASED UPON THE CITY’S OVERALL EMPLOYMENT GROWTH WITH SPECIAL CONSIDERATION FOR NEWLY DEVELOPING WAREHOUSE/DISTRIBUTION FACILITIES WITH ~2,800 NEW JOBS. •ABSORPTION AMONG THE PROJECTS IS PRIORITIZED ACCORDING TO THEIR CURRENT DEVELOPMENT APPROVAL STATUS. •THE PACE OF NEW DEVELOPMENT IS EXPECTED TO OCCUR IN A SYNCHRONIZED MANNER TO MAINTAIN STABLE RENTS. •SHOULD EXCESS UNITS ENTER THE MARKETPLACE, RENTS WOULD NEED TO BE LOWERED TO MAINTAIN ABSORPTION. ESTIMATED ABSORPTION SCHEDULES FOR NEW APARTMENT PROJECTS 208 336 300 23 0 0 0 100 130 94 0 0 0 250 250 160 0 50 175 275 319 0 50 100 150 200 250 300 350 400 450 500 2022 2023 2024 2025 2026 2027 2028NUMBER OF APARTMENT RENTAL'S -ANNUALLYRANCHO CUCAMONGA NEW APARTMENT PROJECTS ACTIVE, UNDER CONSTRUCTION, PERMITS & FUTURE * FUTURE* ALTA CURVEE-260, 33-NORTH-311 & HAVEN/ARROW-248 * PERMITS ISUED * HARVEST @ TERRA VISTA-660 * CONSTRUCTION* LA MIRAGE-193 & WESTBURY-131 * ACTIVE * HOMECOMING-867 SECTION II NON-RESIDENTIAL WAREHOUSE/DISTRIBUTION (W/D), THE PRIMARY GROWTH SECTOR BUT MINIMAL ECONOMIC BENEFITS 17 GEOGRAPHICAL DEVELOPMENT PATTERNS FOR WAREHOUSE/DISTRIBUTION MARKET IN THE INLAND EMPIRE RANCHO CUCAMONGA HAS A STRATEGIC LOCATION VS CITIES LOCATED EASTERLY IN SB-R COUNTIES CLOSER PROXIMITY TO THE PORTS/RAIL/HIGHWAYS AND ALSO CLOSER PROXIMITY TO THE LA POPULATION CORE 9 FORECAST OF NEAR-TERM AND FUTURE DEVELOPMENT FOR WAREHOUSE/DISTRIBUTION PROJECTS 10 THE RANCHO CUCAMONGA PLANNING DEPARTMENT PROVIDED INFORMATION ON THE WAREHOUSE/DISTRIBUTION PROJECTS, THAT ARE CURRENTLY UNDER CONSTRUCTION OR AT VARIOUS STAGES IN THE PLANNING PROCESS. 106,192 46,620 74,387 2,304,269 794,014 1,215,030 2,410,461 840,634 1,289,417 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 UNDER CONSTRUCTION: 2023 -2024 PLAN CHECK: 2024-2025 ENTITLEMENTS: 2025 - 2026TOTAL SQUARE FEETCITY OF RANCHO CUCAMONGA MAJOR WAREHOUSE/DISTRIBUTION FORTHCOMING PROJECTS -NEAR TERM BELOW ~75,000 SQ.FT.ABOVE ~75,000 SQ.FT. •CONSTRUCTION TIMES ESTIMATED BASED UPON EXPECTED MARKET DEMAND •ACTUAL CONSTRUCTION AND MARKET ENTRY WILL BE DETERMINED BY THE DEVELOPERS/PROPERTY OWNERS. NEAR-TERM FORECAST FOR ADDITIONAL WAREHOUSE/DISTRIBUTION FOR RANCHO CUCAMONGA 11 THE NEAR-TERM W/D PROJECTS HAVE AN ESTIMATED 4,500,000 SQ.FT. EMPIRE ECONOMICS ESTIMATED THE AMOUNT OF EMPLOYMENT WILL GENERATE ABOUT 2,833 NEW JOBS . 602,615 1,625,548 1,630,447 644,709 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2023 2024 2025 2026BUILDING SQ.FT. ABSORBED RANCHO CUCAMONGA WAREHOUSE/DISTRIBUTION ABSORPTION OF NEW BUILDING SPACE BUILDING - SQ.FT. 383 1,025 1,021 403 0 200 400 600 800 1,000 1,200 2023 2024 2025 2026NEW EMPLOYMETNRANCHO CUCAMONGA WAREHOUSE/DISTRIBUTION NEW EMPLOYMENT EMPLOYEES •ABSORPTION ESTIMATED BASED UPON EXPECTED DEMAND •ACTUAL CONSTRUCTION AND MARKET ENTRY WILL BE DETERMINED BY THE DEVELOPERS/PROPERTY OWNERS. BASED UPON RECENT DATA OF W/D EMPLOYMENT IN THE CITY, ABOUT 80% OF SUCH WORKERS RESIDE IN THE CITY •ALTHOUGH THERE MAY BE POTENTIAL FOR THE DEVELOPMENT ALTERNATIVE LAND USES, SUCH AS OFFICE, RETAIL AND MULTIFAMILY, THEIR DEVELOPMENT POTENTIAL, AS MEASURED BY ECONOMIC METRICS, ARE CURRENTLY NOT AS FAVORABLE 12 OVERVIEW OF CURRENT MARKET CONDITIONS FOR WAREHOUSE/DISTRIBUTION AND ALTERNATIVE POTENTIAL LAND USES: RETAIL, OFFICE AND MULTIFAMILY/APARTMENTS $1.51 $2.20 $1.95 $2.18 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 W / D RETAIL OFFICE MULTIFAMILYRENTS PER SQ.FT. -MONTHLYRECENT RENTS $54,826 $30,692 $52,495 $74,218 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 W / D RETAIL OFFICE MULTIFAMILYEMPLOYEE SALARIES -ANNUALLYEMPLOYEE SALARIES 14 87 275 100 0 50 100 150 200 250 300 W / D RETAIL OFFICE MULTIFAMILYEMPLOYEES/RESIDENTS PER ACREEMPLOYEES/RESIDENTS -PER ACRE 1.1% 6.5% 5.3%4.8% 0% 1% 2% 3% 4% 5% 6% 7% 8% W / D RETAIL OFFICE MULTIFAMILYVACANCY RATERECENT VACANCY RATES RANCHO CUCAMONGA: COST/BENEFIT ANALYSIS OF WAREHOUSE/DISTRIBUTION AND OTHER POTENTIAL LAND-USES 13 DESCRIPTION OF NUMERIC ESTIMATES WAREHOUSE / DISTRIBUTION RETAIL OFFICE MULTIFAMILY VACANCY RATE 1.1%6.5%5.3%4.8% MARKET RENT PSF $1.51 $2.20 $1.95 $2.18 NET OPERATING INCOME (NOI)$87,210 $71,585 $270,168 $888,216 CAP RATE - USED TO ESTIMATE VALUE 4.5%6.5%6.5%5.8% IMPLIED MARKET VALUE $1,938,004 $1,101,310 $4,156,431 $15,314,063 SALE VALUE PRICE PER SQ. FT. OF LAND $268 $175 $182 $225 BUILDING COVERAGE 41%38%72%125% ESTIMATED PROPERTY TAX PER ACRE $32,946 $18,722 $70,659 $260,339 FUTURE DEMAND HIGH MODERATE MINIMAL HIGH TOTAL WORKERS/RESIDENTS PER SECTOR 8,271 17,177 31,239 61,769 WORKERS/RESIDENTS PER ACRE 14 87 275 100 AVERAGE WAGE - EMPLOYEES $54,826 $30,692 $52,495 $74,218 WAGE GROWTH POTENTIAL MINIMAL MINIMAL MODERATE MODERATE PRIMARILY CITY RESIDENTS; MINIMAL MINIMAL MODERATE YES SALES TAX ELIGIBLE NO YES YES YES IMPACTED BY REMOTE WORK NO NO YES NO IMPACTED NEGATIVELY BY AUTOMATION YES SOME YES NO POSITIVE EXTERNALITIES STABLE SHOPPING HUB BRINGS IN WORKERS RESIDENT BASE NEGATIVE EXTERNALITIES/RISK TRAFFIC ECONOMIC CYCLE REMOTE WORK RENTERS POLLUTION OPPORTUNITY COST NOTES HIGH DEMAND FOR WAREHOUSE/DISTRIB UTION SPACE DUE TO PRIME INLAND EMPIRE LOCATION. CAN SERVICE DAILY AND REGIONAL NEEDS. VACANCY AND RENT DEPENDENT ON NEEDS. SUSCEPTIBLE TO REMOTE WORK, LOW VACANCY IN RC DRIVEN BY HEALTHCARE DEMAND CONCLUSIONS AND INSIGHTS I. RESIDENTIAL MARKET: HIGH MORTGAGE RATES, FOR-SALE HOMES SLUGGISH, WHILE APARTMENTS STRONG •MARKET FOR EXISTING HOMES EXPECTED TO REMAIN SLUGGISH THROUGH 2024 •HOME SALES RELATIVELY LOW DUE TO CURRENT HOMEOWNERS HAVING HISTORICALLY LOW MORTGAGE RATES •NEW RESIDENTIAL DEVELOPMENT ACTIVITY IN THE CITY PRIMARILY APARTMENTS II. NON-RESIDENTIAL: WAREHOUSE/DISTRIBUTION (W/D) AS THE PRIMARY GROWTH SECTOR, BUT MINIMAL ECONOMIC BENEFITS •ROBUST DEVELOPMENT POTENTIAL FOR W/D IN THE CITY –NEAR-TERM 4M SQ.FT. •BUT ECONOMIC BENEFITS MINIMAL AND POTENTIAL TRAFFIC/HEALTH EXTERNALITIES * THE PRIMARY SECTORS GENERATING NEW DEVELOPMENT IN THE CITY ARE W/D AND APARTMENT PROJECTS 26 DATE:July 19, 2023 TO:Mayor and Members of the City Council FROM:John R. Gillison, City Manager INITIATED BY:Matt Marquez, Director of Planning and Economic Development SUBJECT:Quarterly Development Update – Second Quarter 2023 (CITY) RECOMMENDATION: Staff recommends that the City Council receive a presentation from staff on development-related activities for the second quarter of 2023 (April through June). BACKGROUND: Over the last several months, the City Council has received reports detailing the progress in implementing the City’s General Plan and Housing Element. Those reports are submitted to State agencies for annual review and serve as report cards for the community to verify that progress continues to be made toward meeting the goals outlined in each plan. While those reports include development-related information (permits issued, new housing units constructed, etc.), they are only developed and presented to the City Council once a year. Staff believes more frequent updates are necessary to better inform the community and at the conclusion of the first quarter of 2023, provided a Quarterly Development Update (QDU) to the City Council. Now, with the second quarter of 2023 complete, it is again time for staff to present an update to the City Council. ANALYSIS: The QDU to be presented to the City Council will include summaries of both Building & Safety and Planning & Economic Development related activities. This includes, but may not be limited to, detailing entitlement approvals by use type, providing updates on key development projects, and reporting on building permit and plan check activity. For example, 1,487 new plan checks have been submitted to the City for review, and 1,543 building permits have been issued during the second quarter of 2023. Additionally, hundreds of people have visited the public counter and staff has fielded thousands of phone calls, all while construction on various projects continues throughout the City. Staff's formal presentation to the City Council will provide additional details on development- related activities, and staff will continue to report this information to Council quarterly. FISCAL IMPACT: There is no fiscal impact associated with this item. Page 707 of 715 Page 2 1 9 3 4 COUNCIL MISSION / VISION / VALUE(S) ADDRESSED: This item addresses the Council’s following core values: 1. Providing and nurturing a high quality of life for all 2. Relentless pursuit of improvement 3. Building and preserving a family-oriented atmosphere ATTACHMENTS: None Page 708 of 715 QUARTERLY DEVELOPMENT UPDATE 2023 -Quarter 2 PLANNING SUMMARY 65 Applications Submitted 388 Counter Visits & 660 Phone Calls v v v20+ Major Projects In The Pipeline Business Appreciation Month 2O Businesses Highlighted –25,082 impressions 292 Tickets provided for Business Appreciation Night Marketing & Communications 3,940 Subscribers -Community & Economic Development e-Newsletter 173 Subscribers -Real Estate Professionals e- Newsletter Business Support Services 1 –Brokers Roundtable –21 attendees 3 SBDC workshops held w/ 23 attendees 14 first-time business consulting meetings held 52 business consulting meetings held v v v ECONOMIC DEVELOPMENT 1,543 Building Permits Issued 1,487 New Plan Check Submittals 131 New Units Finalized 47 New Construction Permits Finalized BUILDING & SAFETY SUMMARY 2023 -Quarter 2 342 Counter Visits 4,917 Phone Calls 3,432 Texting Contacts 3,861 Inspections BUILDING ACTIVITY –New Construction •12255 Base Line Sanctity Hotel –68-room Boutique Hotel •9325 Feron Boulevard –New 15,700 sq ft concrete tilt-up located East of Hellman across from Public Works •8500 Haven Avenue (Haven and Arrow Project) –248 apartment units mixed-use building; 24,000 sq ft of commercial space 9325 Feron Blvd. 8500 Haven Ave.Sanctity Hotel BUILDING ACTIVITY - Residential •Homecoming at the Resort –All foundations for the 435 units have now been completed. •Westberry Apartments –131 units and 2,662 sf clubhouse •The Core –193 units and a 7,748 sq ft Club House located on Foothill and East Ave. •Alta Cuvee Apartments –260 units with subterranean parking and 3,339 sf of commercial space BUILDING ACTIVITY - Occupancy 2,132 sq ft 11995 Foothill Blvd. #120 1,243 sq ft 12385 South Mainstreet (Victoria Gardens) 690 sq ft 12434 North Mainstreet, #122 (Victoria Gardens) 1,592 sq ft 12335 Base Line Rd., #100 1,157 sq ft 7802 Kew Ave. (Victoria Gardens) THE END DATE:July 19, 2023 TO:Mayor and Members of the City Council FROM:John R. Gillison, City Manager INITIATED BY:Wess Garcia, Acting Library Director SUBJECT:Consideration of the City Council Library Subcommittee's Recommendation to Appoint Members to the Library Board of Trustees. (CITY) RECOMMENDATION: Staff recommends the City Council approve the City Council Library Subcommittee’s recommendation to appoint Christine DeVries and Laurel Rice to a three-year term ending on June 30, 2026 and appoint William Diepenbrock to fill an un-scheduled vacancy for an unexpired term ending on June 30, 2024 on the Library Board of Trustees. BACKGROUND: As mandated by the California Education Code Sections 18910-18927, municipal public libraries shall have a Board of Trustees appointed by the municipality’s governing body. As outlined in the By-laws of the Rancho Cucamonga Public Library Board of Trustees, the Board is mandated to provide oversight to the Library. Terms of office for the Trustees shall be for three years and all Members serve in a volunteer capacity. Two vacancies will be created on the Board on June 30, 2023, when the terms for Board Members Christine DeVries and Janet Temkin conclude. A third vacancy via a resignation by Board member Kristen Murrieta-Morales was submitted and effective as of June 22, 2023. New appointees Christine DeVries and Laurel Rice will each be appointed to complete three- year terms concluding June 30, 2026. The appointment of William Diepenbrock due to the resignation of Kristen Murrieta-Morales will be to fill an unexpired term ending on June 30, 2024. ANALYSIS: The City Council Library Subcommittee, at their meeting on May 17, 2023, interviewed six applicants for the Library Board of Trustees vacancies. The Subcommittee recommends the appointment of Christine DeVries, Laurel Rice, and William Diepenbrock. These three candidates have demonstrated their passion for public library services in Rancho Cucamonga. FISCAL IMPACT: None. COUNCIL MISSION / VISION / VALUE(S) ADDRESSED: Providing superior Library Services to the residents of Rancho Cucamonga supports City Council’s Core Values of providing and nurturing a high quality of life and equitable prosperity for all. ATTACHMENTS: None. Page 709 of 715 DATE:July 19, 2023 TO:Mayor and Members of the City Council FROM:John R. Gillison, City Manager INITIATED BY:Michael Parmer, Assistant to the City Manager SUBJECT:Designation of Voting Delegates and Alternates for the League of California Cities (Cal Cities) Annual Business Meeting. (CITY) RECOMMENDATION: Staff recommends the City Council designate a voting Delegate and Alternates for the Annual Business Meeting of the 2023 League of California Cities (Cal Cities) Annual Conference. BACKGROUND: Cal Cities 2023 Annual Conference is scheduled for September 20-22, 2023, in Sacramento. An essential part of the Annual Conference is the Annual Business Meeting during the General Assembly on Friday, September 22. At this meeting, the Cal Cities membership considers and takes action on various resolutions that establish Cal Cities policy on municipal issues of statewide importance. In order to vote at the Annual Business Meeting, the City Council must designate one (1) voting delegate and appoint up to two (2) alternate voting delegates, one of whom may vote in the event the designated voting delegate is unable to serve in that capacity. According to the League bylaws, the voting delegate and the two alternate delegates must be designated by an official vote of the City Council. ANALYSIS: The designate voting delegate and alternates must be registered to attend the conference. Only one (1) voting card will be provided for use by either the voting delegate or the alternates. The task of voting at the Annual Business Meeting cannot be transferred to any other city official beyond the designated voting delegate and alternates. The voting delegate and alternates can be Council Members or City Staff scheduled to participate in the conference. FISCAL IMPACT: None. COUNCIL MISSION / VISION / VALUE(S) ADDRESSED: Actively participating in the policy-making process during the General Assembly supports the City Council’s Core Values of intentionally embracing and anticipating the future and continuous improvement. ATTACHMENTS: Attachment 1 - Voting Delegate Letter and form. Page 710 of 715 1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org DATE: Wednesday, June 21, 2023 TO: Mayors, Council Members, City Clerks, and City Managers RE: DESIGNATION OF VOTING DELEGATES AND ALTERNATES League of California Cities Annual Conference and Expo, Sept. 20-22, 2023, Sacramento SAFE Credit Union Convention Center Every year, the League of California Cities convenes a member-driven General Assembly at the Cal Cities Annual Conference and Expo. The General Assembly is an important opportunity where city officials can directly participate in the development of Cal Cities policy. Taking place on Sept. 22, the General Assembly is comprised of voting delegates appointed by each member city; every city has one voting delegate. Your appointed voting delegate plays an important role during the General Assembly by representing your city and voting on resolutions. To cast a vote during the General Assembly, your city must designate a voting delegate and up to two alternate voting delegates, one of whom may vote if the designated voting delegate is unable to serve in that capacity. Voting delegates may either be an elected or appointed official. Please complete the attached voting delegate form and email it to Cal Cities office no later than Monday, August 28. New this year, we will host a pre-conference information session for voting delegates to explain their role. Submitting your voting delegate form by the deadline will allow us time to establish voting delegate/alternate records prior to the conference and provide pre- conference communications with voting delegates. Please view Cal Cities’ event and meeting policy in advance of the conference. Action by Council Required. Consistent with Cal Cities bylaws, a city’s voting delegate and up to two alternates must be designated by the city council. When completing the attached Voting Delegate form, please attach either a copy of the council resolution that reflects the council action taken or have your city clerk or mayor sign the form affirming that the names provided are those selected by the city council. Please note that designating the voting delegate and alternates must be done by city council action and cannot be accomplished by individual action of the mayor or city manager alone. Council Action Advised by August 28, 2023 ATTACHMENT 1 Page 711 of 715 Conference Registration Required. The voting delegate and alternates must be registered to attend the conference. They need not register for the entire conference; they may register for Friday only. Conference registration is open on the Cal Cities website. For a city to cast a vote, one voter must be present at the General Assembly and in possession of the voting delegate card and voting tool. Voting delegates and alternates need to pick up their conference badges before signing in and picking up the voting delegate card at the voting delegate desk. This will enable them to receive the special sticker on their name badges that will admit the voting delegate into the voting area during the General Assembly. Transferring Voting Card to Non-Designated Individuals Not Allowed. The voting delegate card may be transferred freely between the voting delegate and alternates, but only between the voting delegate and alternates. If the voting delegate and alternates find themselves unable to attend the General Assembly, they may not transfer the voting card to another city official. Seating Protocol during General Assembly. At the General Assembly, individuals with a voting card will sit in a designated area. Admission to the voting area will be limited to the individual in possession of the voting card and with a special sticker on their name badge identifying them as a voting delegate. The voting delegate desk, located in the conference registration area of the SAFE Credit Union Convention Center in Sacramento, will be open at the following times: Wednesday, Sept. 20, 8:00 a.m.- 6:00 p.m. and Thursday, Sept. 21, 7:30 a.m.- 4:00 p.m. On Friday, Sept. 22, the voting delegate desk will be open at the General Assembly, starting at 7:30 a.m., but will be closed during roll calls and voting. The voting procedures that will be used at the conference are attached to this memo. Please share these procedures and this memo with your council and especially with the individuals that your council designates as your city’s voting delegate and alternates. Once again, thank you for completing the voting delegate and alternate form and returning it to Cal Cities office by Monday, Aug. 28. If you have questions, please contact Zach Seals at zseals@calcities.org. Attachments: • General Assembly Voting Guidelines • Voting Delegate/Alternate Form • Information Sheet: Cal Cities Resolutions and the General Assembly Page 712 of 715 1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org General Assembly Voting Guidelines 1. One City One Vote. Each member city has a right to cast one vote on matters pertaining to Cal Cities policy. 2. Designating a City Voting Representative. Prior to the Cal Cities Annual Conference and Expo, each city council may designate a voting delegate and up to two alternates; these individuals are identified on the voting delegate form provided to the Cal Cities Credentials Committee. 3. Registering with the Credentials Committee. The voting delegate, or alternates, may pick up the city's voting card at the voting delegate desk in the conference registration area. Voting delegates and alternates must sign in at the voting delegate desk. Here they will receive a special sticker on their name badge and thus be admitted to the voting area at the General Assembly. 4. Signing Initiated Resolution Petitions. Only those individuals who are voting delegates (or alternates), and who have picked up their city’s voting card by providing a signature to the credentials committee at the voting delegate desk, may sign petitions to initiate a resolution. 5. Voting. To cast the city's vote, a city official must have in their possession the city's voting card and voting tool; and be registered with the credentials committee. The voting card may be transferred freely between the voting delegate and alternates but may not be transferred to another city official who is neither a voting delegate nor alternate. 6. Voting Area at General Assembly. At the General Assembly, individuals with a voting card will sit in a designated area. Admission to the voting area will be limited to the individual in possession of the voting card and with a special sticker on their name badge identifying them as a voting delegate. 7. Resolving Disputes. In case of dispute, the credentials committee will determine the validity of signatures on petitioned resolutions and the right of a city official to vote at the General Assembly. Page 713 of 715 CITY: ________________________________________ 2023 ANNUAL CONFERENCE VOTING DELEGATE/ALTERNATE FORM Please complete this form and return it to Cal Cities office by Monday, August 28, 2023. Forms not sent by this deadline may be submitted to the Voting Delegate Desk located in the Annual Conference Registration Area. Your city council may designate one voting delegate and up to two alternates. To vote at the General Assembly, voting delegates and alternates must be designated by your city council. Please attach the council resolution as proof of designation. As an alternative, the Mayor or City Clerk may sign this form, affirming that the designation reflects the action taken by the council. Please note: Voting delegates and alternates will be seated in a separate area at the General Assembly. Admission to this designated area will be limited to individuals (voting delegates and alternates) who are identified with a special sticker on their conference badge. This sticker can be obtained only at the voting delegate desk. 1. VOTING DELEGATE Name: Title: 2. VOTING DELEGATE - ALTERNATE Name: Title: Email: _______________________________ Email: ______________________________ 3. VOTING DELEGATE - ALTERNATE Name: Title: Email: _____________________________ ATTACH COUNCIL RESOLUTION DESIGNATING VOTING DELEGATE AND ALTERNATES OR ATTEST: I affirm that the information provided reflects action by the city council to designate the voting delegate and alternate(s). Name: ____________________________________ Email: _________________________________ Mayor or City Clerk: ________________________ Date: __________ Phone: ________________ (circle one) (signature) Please complete and email this form to votingdelegates@calcities.org by Monday, August 28, 2023. Page 714 of 715 Sixty days before the Annual Conference and Expo, Cal Cities members may submit policy proposals on issues of importance to cities. The resolution must have the concurrence of at least five additional member cities or individual members. How it works: Cal Cities Resolutions and the General Assembly General Assembly General Resolutions Policy Committees Developing League of California Cities policy is a dynamic process that engages a wide range of members to ensure that we are representing California cities with one voice. These policies directly guide Cal Cities advocacy to promote local decision-making, and lobby against statewide policy that erodes local control. The resolutions process and General Assembly is one way that city officials can directly participate in the development of Cal Cities policy. If a resolution is approved at the General Assembly, it becomes official Cal Cities policy. Here’s how Resolutions and the General Assembly works. The petitioned resolution is an alternate method to introduce policy proposals during the annual conference. The petition must be signed by voting delegates from 10% of member cities, and submitted to the Cal Cities President at least 24 hours before the beginning of the General Assembly. Petitioned Resolutions The Cal Cities President assigns general resolutions to policy committees where members review, debate, and recommend positions for each policy proposal. Recommendations are forwarded to the Resolutions Committee. Who’s who The Resolutions Committee includes representatives from each Cal Cities diversity caucus, regional division, municipal department, policy committee, as well as individuals appointed by the Cal Cities president. Voting delegates are appointed by each member city; every city has one voting delegate. The General Assembly is a meeting of the collective body of all voting delegates — one from every member city. Seven Policy Committees meet throughout the year to review and recommend positions to take on bills and regulatory proposals. Policy committees include members from each Cal Cities diversity caucus, regional division, municipal department, as well as individuals appointed by the Cal Cities president. During the General Assembly, voting delegates debate and consider general and petitioned resolutions forwarded by the Resolutions Committee. Potential Cal Cities bylaws amendments are also considered at this meeting. Cal Cities policy development is a member-informed process, grounded in the voices and experiences of city officials throughout the state. For more information visit www.calcities.org/general-assembly Prior to the Annual Conference and Expo Resolutions Committee The Resolutions Committee considers all resolutions. General Resolutions approved1 by either a policy committee or the Resolutions Committee are next considered by the General Assembly. General resolutions not approved, or referred for further study by both a policy committee and the Resolutions Committee do not go the General Assembly. All Petitioned Resolutions are considered by the General Assembly, unless disqualified.2 • Voting delegates will receive increased communications to prepare them for their role during the General Assembly. • The General Assembly will take place earlier to allow more time for debate and discussion. • Improvements to the General Assembly process will make it easier for voting delegates to discuss and debate resolutions. What’s new in 2023? During the Annual Conference and Expo 1 The Resolution Committee can amend a general resolution prior to sending it to the General Assembly. 2 Petitioned Resolutions may be disqualified by the Resolutions Committee according to Cal Cities Bylaws Article VI. Sec. 5(f). Page 715 of 715