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HomeMy WebLinkAbout2026-01-13 - AGENDA REPORTS - INITIATE PROCEEDINGS FOR NEW DBAA SAND CANYON PLAZAO Agenda Item: 7 CITY OF SANTA CLARITA .` AGENDA REPORT CONSENT CALENDAR CITY MANAGER APPROVAL: DATE: January 13, 2026 SUBJECT: DRAINAGE BENEFIT ASSESSMENT AREA RESOLUTION INITIATING PROCEEDINGS, APPROVING AN ENGINEER'S REPORT, AND TAKING OTHER ACTIONS IN CONNECTION WITH TRACTS 53074 AND 53074-01 (SAND CANYON PLAZA) DEPARTMENT: Neighborhood Services PRESENTER: Darin Seegmiller RECOMMENDED ACTION City Council: Adopt resolutions to initiate proceedings to form a Sand Canyon Plaza Drainage Benefit Assessment Area 2025-1 to benefit parcels in Tracts 53074 and 53074-01 and approve the Engineer's Report. 2. Set a public hearing for March 10, 2026, as a time and place to hear comments on this proposed action and close the time period to receive ballots. BACKGROUND On October 10, 2023, the City Council approved Final Tract Map 53074-01. On May 28, 2024, The City Council approved Final Tract Map No. 53074. These actions allowed the development of 576 dwelling units and approximately 45,000 square feet of retail and restaurant use. In addition, one assisted living facility of approximately 137,149 square feet with 140 beds is located on a single institutional parcel. The conditions of approval for this project require the establishment of a homeowner's association or a comparable entity, to fund the continued maintenance of any drainage improvements that are not eligible for transfer to the Los Angeles County Flood Control District for maintenance. The creation of the proposed Drainage Benefit Assessment Area (DBAA) fulfills this requirement. The proposed DBAA 2025-1, Sand Canyon Plaza, assumes responsibility for administering the maintenance, reporting, monitoring, inspection, storm -damage repair, and cleaning of storm - drain improvements. These include new underground storm drainpipes constructed within, and Page 1 Packet Pg. 46 O adjacent to, Sand Canyon Road for Tract Nos. 53074 and 53074-1, ultimately connected to regional infrastructure and flowing to the Santa Clara River. The system consists of approximately 359 linear feet of 18 to 36-inch reinforced concrete pipe, one storm drain manhole, and two cast -in -place catch basins with local depressions for sediment capture. Two low -flow 12-inch High Density Polyethylene drains and one grated inlet (24-inch by 24-inch) are incorporated to manage base flows and provide water quality pretreament. Regular maintenance is required in order for the drainage improvements installed to function correctly within the design parameters. Services required for the assessment district include inspections, removal of debris, silt and sediment build-up, maintenance and repairs, and an annual assessment and engineer's report review. The Engineer's Report contains the proposed boundaries of DBAA 2025-1, identifies the proposed facilities and services to be funded, determines the general and special benefits received by properties, and the methodology to apportion the annual assessments. All parcels were established concurrently to the conditions set forth for the continued maintenance of landscape and infrastructure improvements, and as a result, each parcel within DBAA 2025-1 receives a special and distinct benefit from these improvements. The maximum annual assessment to maintain the improvements associated with DBAA 2025-1 will be $12,812. Based on the number of units approved for construction, the annual assessment will be $20.48 per Equivalent Benefit Unit (EBU). Parcels identified as single-family residences and townhomes/condominiums are assessed at 1.00 EBU per dwelling unit. Parcels identified as Multi -Family (2 or more units) are assessed at 0.75 EBU per dwelling unit. Parcels identified as Non -Residential Property are assessed at 11.00 per acre. Vacant parcels are assessed at a rate of .50 EBU's per acre. The maximum assessment rate will adjust each year based on the annual change in the Consumer Price Index (CPI), all Urban Consumers, for the Los Angeles Riverside -Orange County Area CPI. The actual assessment levied in any fiscal year will be approved by the City Council and may not exceed the maximum assessment rate. If approved, the City will begin levying properties commencing in Fiscal Year 2026-27. ALTERNATIVE ACTION 1. Do not adopt a resolution to initiate formation of DBAA 2025-1. 2. Other direction as determined by the City Council. FISCAL IMPACT All expenses associated with the Drainage Benefit Assessment Area will be borne by the developer. There will be no fiscal impacts to the General Fund. ATTACHMENTS DBAA Formation 2025-1 Intiation Resolution Page 2 Packet Pg. 47 O Resolution of Intent DBAA 2025-1 DBAA 2025-1 Maintenance Exhibit (available in City Clerk's Reading File) DBAA 2025-1 Engineer's Report (available in City Clerk's Reading File) Page 3 Packet Pg. 48 7.a RESOLUTION NO. 26- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, INITIATING PROCEEDINGS FOR THE FORMATION OF DRAINAGE BENEFIT ASSESSMENT AREA NO. 2025-1 (SAND CANYON PLAZA - TRACT NOS. 53074 AND 53074-01), AND THE LEVY AND COLLECTION OF ASSESSMENTS RELATED THERETO COMMENCING WITH FISCAL YEAR 2026-2027 WHEREAS, the City Council pursuant to the provisions of the Benefit Assessment Act of 1982, Chapter 6.4, Division 2, Title 5 of the Government Code of the State of California commencing with Section 54703 (hereafter referred to as the "Act") desires to initiate proceedings for the formation of Drainage Benefit Assessment Area No. 2025-1 (Sand Canyon Plaza - Tract 53074 and 53074-01) (hereafter referred to as the "DBAA 2025-1"), and to levy and collect annual assessments to pay for the operation, maintenance and servicing of drainage improvements and appurtenant facilities related thereto; and WHEREAS, the boundaries of the DBAA 2025-1 shall be as described on the maps on file with the City and in the Engineer's Report, and incorporated herein by reference; and WHEREAS, the City has approved a consulting engineer contract with Willdan, naming Willdan as the Assessment Engineer and firm responsible for preparing the Engineer's Report and assisting in the adjustment of the maximum assessment for parcels within DBAA 2025-1. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The above recitals are true and correct. SECTION 2. The City Council hereby orders Willdan, an engineer registered pursuant to the Professional Engineers Act (Chapter 7, commencing with Section 670, of Division 3 of the Business and Professions Code), has been designated Assessment Engineer for the proposed formation of DBAA 2025-1. Willdan is hereby ordered to prepare and file an Engineer's Report for the City Council's review, consideration and adoption in accordance with the Act and the laws of the State of California. SECTION 3. The purpose of DBAA 2025-1 is to fund the activities necessary for the ongoing maintenance and servicing of the drainage improvements within the district that are for the benefit of properties therein and that have been required for the development of such properties to their full and best use. The maintenance and operation of these improvements may include, but are not limited to, all materials, equipment, labor, and incidental expenses deemed necessary to keep the drainage improvements and facilities in satisfactory condition, as well as the collection of assessment installments for periodic service activities, repair, or rehabilitation of the improvements and facilities. Detailed maps and descriptions of the location and extent of the specific improvements to be maintained by DBAA 2025-1 are on file at the Environmental Services Department of the City of Santa Clarita and by reference these plans and specifications are made part of this resolution. Z U 0 Z a co N O N Page 1 of 2 Packet Pg. 49 7.a z SECTION 4: The territory of land within the proposed district includes all lots and v parcels of land within the residential and commercial development known Sand Canyon Plaza - z Tract Nos. 53074 and 53074-1 within the City of Santa Clarita, the County of Los Angeles, State < of California. The territory of land within DBAA 2025-1 includes parcels identified by the Los Angeles County Assessor's Office as Assessor Parcel Numbers Book 2839, Page 058, Parcels 8 N CD through 12 and 15; Page 059, Parcels 1 through 3 and 8 through 14; Page 060, Parcels 1 through N 4 and 7; Page 061, Parcels 1 through 3; Page 062, Parcels 1 through 4; and shall include all O z subsequent subdivisions, lot line adjustments or parcel changes therein. Q SECTION 5. This resolution shall take effect immediately. SECTION 6. The City Clerk shall certify to the passage and adoption of this resolution; shall cause the same to be entered in the book of resolutions of the City and shall make a minute of the passage and adoption thereof in the records of the proceedings of the City Council of the City in the minutes of the meeting at which the same is presented. PASSED, APPROVED, AND ADOPTED this 13th day of January 2026. MAYOR z ATTEST: 0 LL O z O CITY CLERK Q DATE: O U- STATE OF CALIFORNIA ) o COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the o foregoing Resolution No. 26- was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the 13th day of January 2026, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: CITY CLERK Page 2 of 2 Packet Pg. 50 7.b RESOLUTION NO. 26- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, DECLARING THE CITY' S INTENTION TO FORM DRAINAGE BENEFIT ASSESSMENT AREA NO. 2025-1 (SAND CANYON PLAZA - TRACT NOS. 53074 AND 53074-01), LEVY ASSESSMENTS, PRELIMINARILY APPROVING AN ENGINEER'S REPORT, AND CALLING FOR A PROPERTY OWNER PROTEST BALLOT PROCEEDING TO SUBMIT TO THE QUALIFIED PROPERTY OWNERS THE QUESTION OF LEVYING SUCH ASSESSMENTS FOR SAID FORMATION PURSUANT TO THE PROVISIONS OF THE CALIFORNIA CONSTITUTION, ARTICLE XIIID WHEREAS, the City Council of the City of Santa Clarita (City) has initiated proceedings to form Drainage Benefit Assessment Area No. 2025-1 (hereafter referred to as the "DBAA 2025-1"), pursuant to the provisions of the Benefit Assessment Act of 1982, Chapter 6.4, Division 2, Title 5 of the Government Code of the State of California commencing with Section 54703 (hereafter referred to as the "Act") to fund the costs of servicing and maintenance of improvements within the newly formed drainage area; and WHEREAS, the proposed newly formed district be designated as DBAA 2025-1; and WHEREAS, the boundary of DBAA 2025-1 shall be as described on the maps previously presented to this Council and on file with the City Clerk, and are proposed to include the map presented in the Engineer's Report and additional maps on file with the City provided by the Developer in connection with DBAA 2025-1, and WHEREAS, the Assessment Engineer, Willdan, has filed with the City Clerk of the City and the City Clerk has presented to the City Council a report (Engineer's Report), regarding the proposed formation of DBAA 2025-1. Section 54710 of the Government Code section outlines the rules and regulation of the Act; and WHEREAS, the Engineer's Report has been duly presented by the City Clerk for consideration and has been fully considered by the City Council. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Engineer's Report, Content: The Engineer's Report as presented, consists of the following: The Plans and Specifications which describe the boundaries of DBAA 2025-1, and the improvements associated therewith that provide special benefits to the parcels therein. The Method of Apportionment details the method of calculating proportional special benefit and the annual assessment obligation for each affected parcel. The Estimate of Improvement Costs including the calculation of the assessments and the estimated annual funding (Budget) required for the annual maintenance, servicing, and operation Page 1 of 4 Packet Pg. 51 7.b of drainage improvements and specifically the costs associated with the improvements determined to be of special benefit to parcels within the Annexation Territory establishing the proposed maximum assessment. The proposed Maximum Assessments shall be presented to the property owner(s) of record in a protest ballot proceeding pursuant to the California Constitution Article XIIID. A Formation Diagram outlining the boundaries of the Annexation Territory. An Assessment Roll containing the maximum assessments and proposed assessments as of the date of the report for each Assessor Parcel Number within DBAA 2025-1. SECTION 2. Engineer's Report, Approval: The Engineer's Report is hereby approved on a preliminary basis as submitted or amended by direction of this City Council and is hereby ordered to be filed in the Office of the City Clerk as a permanent record and to remain open to public inspection. SECTION 3. Intention: The City Council hereby declares its intention to form the drainage area known as Sand Canyon Plaza, Tract Nos. 53074 and 53074-01 and to levy and collect annual assessments against parcels of land within DBAA 2025-1 commencing with Fiscal Year 2026/2027 in accordance with the Act and the provisions of the California Constitution Article XIIID. The territory being formed shall subsequently be designated as Drainage Benefit Assessment Area No. 2025-1. SECTION 4. Annexation Territory: The City Council hereby finds that proposed territory within DBAA 2025-1 consists of all lots, parcels, and subdivisions of land within the planned residential and commercial area identified as Parcel Map Book 2839, Page 058, Parcels 8 through 12 and 15; Page 059, Parcels 1 through 3 and 8 through 14; Page 060, Parcels 1 through 4 and 7; Page 061, Parcels 1 through 3; Page 062, Parcels 1 through 4; and that this area includes all properties that receive special benefits from the improvements provided. SECTION 5. Improvements: The proposed improvements and services for the Annexation Territory, include installation, construction, or maintenance of any authorized improvements under the Act, including, but not limited to, drainage improvements and any facilities which are appurtenant to any of the aforementioned or which are necessary or convenient for the maintenance or servicing thereof. The Engineer's Report, prepared in connection with the Annexation Territory, provides a more detailed description of the improvements and services to be provided and for which properties shall be assessed and by reference that Engineer's Report is made part of this resolution. SECTION 6. Assessments: The City Council hereby determines that to provide the improvements described in Section 5 of this resolution, it is necessary to levy and collect assessments against lots and parcels within the Annexation Territory commencing in Fiscal Year 2026/2027. The Engineer's Report referred to in Section 1 of this resolution establishes the initial maximum assessment rate and an estimate of maximum assessments necessary to provide for the annual operation, administration, services, and maintenance of the improvements. Page 2 of 4 Packet Pg. 52 7.b SECTION 7. Compliance with the Constitution: Pursuant to California Constitution Article XIIID, an assessment ballot proceeding is hereby called on the matter of confirming the proposed new assessments for DBAA 2025-1. The ballots and notices so authorized shall be distributed by first class mail to the property owners of record as of the last County equalized roll, and each property owner may return the ballot by mail or in person to the City Clerk no later than the conclusion of the public hearing for this matter. The provisions of the California Constitution Article XIIID require that the City conduct a public hearing not less than 45 days after mailing a notice of the proposed assessment to record owners of each parcel which will have a special benefit conferred upon them and upon which an assessment will be imposed. SECTION 8. Mailed Notice and Ballot: The City Council hereby authorizes and directs the City Clerk or their designee to prepare and mail the Notice of Public Hearing, and in the same or separate mailing, mail the property owner protest ballot(s) to the subject property owner regarding the proposed levy of assessments and the assessment range formula outlined in the Engineer's Report, for return receipt prior to the date and time of the public hearing set forth in this resolution. SECTION 9. Public Hearing: The City Council hereby declares its intention to conduct a public hearing concerning DBAA 2025-1, the improvements, and the levy of assessments, notice is hereby given that on Tuesday, March 10, 2026 at or after 6:00 PM the City Council will hold a public hearing for the formation of DBAA 2025-1 and the levy and collection of assessments related thereto commencing in Fiscal Year 2026-2027, or as soon thereafter as feasible. The public hearing will be held in the City Council Chambers, located at 23920 Valencia Blvd., in the City of Santa Clarita, California, at the time so fixed. At the public hearing, all interested persons shall be afforded the opportunity to hear and be heard. SECTION 10. Determination of Majority Protest: The property owner protest ballot proceeding conducted for the Annexation Territory shall constitute the property owner's approval or rejection of the annual levy of assessments and assessment range formula. The property owner may return the ballot by mail or in person to the City Clerk no later than the conclusion of the public hearing on Tuesday, March 10, 2026. After the close of the public hearing, pursuant to Section 4, Sub -Section 4 (e) of the California Constitution, the City shall tabulate the ballots returned to determine if majority protest exists. The ballots shall be weighted according to the proportional financial obligation of the affected property. Majority protest exists if, upon the conclusion of the hearing, ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessment. SECTION 11. This resolution shall take effect immediately. SECTION 12. The City Clerk shall certify to the passage and adoption of this resolution; shall cause the same to be entered in the book of resolutions of the City and shall make a minute of the passage and adoption thereof in the records of the proceedings of the City Council of the City in the minutes of the meeting at which the same is presented. Page 3 of 4 Packet Pg. 53 7.b PASSED, APPROVED, AND ADOPTED this 131h day of January 2026. MAYOR ATTEST: CITY CLERK DATE: STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution No. 26- was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the 131h day of January 2026, by the following vote AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: CITY CLERK Page 4 of 4 Packet Pg. 54 SHEET i ikPROJECT BOUNDARY -SHEET 2 PA 1A SHEET �o I 1 SHEET 5 PA 2B PROJECT BOUNDARY PA 2A n + I A PA 3B SHEET 61111* /��.�ri♦ v � SHEET 7 PA 3A I PA 48 PA 4A / I GRAPHIC SCALE 200 0 100 200 400 'LAZA UJCE EXHIBIT IN FEET G7n�A 1 inch = 2D0 ft. X i i PIP y EXISTING DOUBLE 10'W X 4'B RCB— �PER MTD 1821 11 \XX EXISTING LACFCD CATCH BASIN W=7'. V=4.5' ����� 12" PVC SD ITEM PG PLAN -�� AEXIs1ING' LACFCD �-\ CATCH BASIN SHEET s Q W=7', V=5.55' _t I \ EST NGG' 24\ 2" PVC SD ITEM 1 PER RG PLAN SHEET 5 RG PLAN = GRA17-00046 j RCP PER AMTD 1432 lol\\ 40 0 20 40 80 SAND CANYON PLAZA DBAA MAINTENANCE EXHIBff IN FEET > 1 inch = 40 ft. GRATED CATCH BASIN ITEM 3 PER SD PLAN SHEET 2 E RCP s ITo w / ITEM 2 \ / PER SD PLAN � /SHEET 2 / �?`.nN� _ c i LINE "A PER MTD 1697 V� TO BE MAINTAINED BY LACFCD STORM DRAIN PLAN = SD18-00004 a RCP S ITE D TEM 1 \ PER SD PLAN L� SHEET s I I C\\ \ 40 0 20 40 80 _AZA ICE EXHIBIT IN FEET ) ,,,,�, 1 inch = 40 ft. EXISTING 30" PER PD 1975 °- ROAD '--30" RCP SD ITEM 1 PER SD PLAN SHEET 5 LINE 'A' PER MTD 1697 TO BE MAINTAINED BY LACFCD STORM DRAIN PLAN = SD18-00004 / I 40 0 20 40 80 IN FEET ) 1 inch = 40 ft. STORM DRAIN PLAN = SD18-00004 0 20 40 80 IN FEET ) 1 inch = 40 ft. DRAIN PLAN = SD18-00004 40 0 20 40 80 IN FEET ) 1 inch = 40 ft. RG PLAN = GRA17-00046 STORM DRAIN PLAN = SD18-00004 _ W 18' RCP SD PER SD PLAN / SHEET 4 LNE °A - _SAND' S - - =-- - -LINE A° GRATED INLET PER MTD 1697 ITEM 2 TO BE MAINTAINED BY LACFCD PER RG PLAN SHEET 8 \ 18" RCP SD ITEM 1 PER SD PLAN SHEET 5 40 0 20 40 80 SAND CANYON PLAZA DBAA MAINTENANCE EXHIBff IN FEET > 1 inch = 40 n. ALLIAh10E � TRACT MAP N0. 53074 �o SANTA CLARITA, CA SHEET 7 OF 7 ACADv2—vENUBir5l5rQRM DBAiNv2— MTD-1F97—DBAA ENUBIT d. CITY OF SANTA CLARITA ENGINEER'S REPORT Proposed Formation of Drainage Benefit Assessment Area No. 2025-1 (Sand Canyon Plaza - Tract Nos. 53074 and 53074-01) Establishment of Annual Assessments Commencing Fiscal Year 2026/2027 Intent Meeting: January 13, 2026 Public Hearing: March 10, 2026 CITY OF SANTA CLARITA 23920 VALENCIA BOULEVARD SANTA CLARITA, CA 91355 PREPARED BY WILLDAN FINANCIAL SERVICES DECEMBER 2025 W"W I LLDAN CITY OF SANTA CLARITA DRAINAGE BENEFIT ASSESSMENT AREA (SAND CANYON PLAZA - TRACT NOS. 53074 AND 53074-01) ENGINEER'S REPORT CERTIFICATE This Report describes the proposed formation of Drainage Benefit Assessment Area ("DBAA") 2025-1, Sand Canyon Plaza, Tract Nos. 53074 and 53074-01 (DBAA) including the improvements, budgets, parcels, and assessments to be levied for Fiscal Year 2026/2027, as they existed at the time of the passage of the Resolution of Intention. Reference is hereby made to the Los Angeles County Assessor's maps for a detailed description of the lines and dimensions of parcels within the DBAA. The undersigned respectfully submits the enclosed Report as directed by the City Council. Dated this day of 2026. M Stacee Reynolds Principal Consultant District Administration Services la Tyrone Peter R. C. E. # 81888 I HEREBY CERTIFY that the enclosed Engineer's Report, together with the Assessment Roll and Assessment Diagrams thereto attached was filed with me on the day of 2026. 1A Mary Cusick, City Clerk City of Santa Clarita Los Angeles County, California I HEREBY CERTIFY that the enclosed Engineer's Report, together with the Assessment Roll and Assessment Diagrams thereto attached was approved and confirmed by the City Council of the City of Santa Clarita, California, on the day of 2026. la Mary Cusick, City Clerk City of Santa Clarita Los Angeles County, California TABLE OF CONTENTS INTRODUCTION....................................................................................................................1 DISCLAIMER.................................................................................................................................. 3 PART I - PLANS AND SPECIFICATIONS...........................................................................4 PROPERTIES WITHIN THE DISTRICT..................................................................................................4 FUNDING AUTHORIZED BY THE 1982 ACT........................................................................................4 IMPROVEMENTS AND SERVICES......................................................................................................4 DRAINAGE MAINTENANCE..............................................................................................................5 PART II - METHOD OF APPORTIONMENT.......................................................................6 SPECIALBENEFIT..........................................................................................................................6 GENERALBENEFIT........................................................................................................................6 ASSESSMENTMETHODOLOGY........................................................................................................6 EquivalentBenefit Units............................................................................................................. 7 ProposedLand Use..................................................................................................................... 9 Assessment Calculations........................................................................................................... 9 ASSESSMENT RANGE FORMULA.....................................................................................................9 PART III - DISTRICT BUDGET.........................................................................................11 PART IV - DISTRICT DIAGRAM.......................................................................................14 PART V - ASSESSMENT ROLL.......................................................................................15 Engineer's Report City of Santa Clarita Drainage Benefit Assessment Area No. 2025-1 (Sand Canyon Plaza - Tract Nos. 53074 & 53074-01) INTRODUCTION Pursuant to the provisions of the Benefit Assessment Act of 1982, being Chapter 6.4 of the California Government Code, commencing with Section 54703 (hereafter referred to as the 1982 Act"), and in compliance with the substantive and procedural requirements of the California State Constitution Article XIII D (hereafter referred to as the "California Constitution"), the City Council of the City of Santa Clarita, County of Los Angeles, State of California (hereafter referred to as "City"), propose to form and levy special benefit assessments for the district to be designated as: Drainage Benefit Assessment Area No. 2025-1 (Sand Canyon Plaza - Tract Nos. 53074 and 53074-01) (hereafter referred to as "DBAA" ), which includes all lots and parcels of land within Tract Nos. 53074 and 53074-01 that will receive special benefit from the drainage improvements installed and maintenance in connection with the development of these residential subdivisions within the City limits of Santa Clarita. This Engineer's Report (hereafter referred to as "Report") has been prepared in connection with the formation of said District and the levy and collection of annual assessments related thereto commencing in Fiscal Year 2026/2027, as required pursuant to Section 54716 of the 1982 Act. The City Council proposes to form the District, and levy and collect annual assessments on the County tax roll to provide ongoing funding for the costs and expenses required to service and maintain drainage improvements and appurtenant facilities that are necessary and essential requirements for the development of the properties within the District to cause the protection of those properties and the surrounding ecological environment from flooding. The improvements to be provided by the District and the assessments described herein are made pursuant to the 1982 Act and the substantive and procedural provisions of the California Constitution. The formation of this District and the assessments described herein will provide a funding source for the continued operation and maintenance of the drainage improvements that are directly associated with the development of properties within the District and for the special benefit of those properties. The budgets and assessments described in this Report are based on the planned improvements and development requirements associated with Tract Nos. 53074 and 53074-01. The maximum assessment rate and Assessment Roll are established during Fiscal Year 2025/2026, concurrent with the formation of the District. The first levy and collection of assessments will occur in Fiscal Year 2026/2027, reflecting application of the Assessment Range Formula to the Fiscal Year 2025/2026 maximum rate, in accordance with Article XIII D of the California Constitution (Proposition 218). These actions ensure that the City has an adopted and property owner -approved rate structure in place prior to the commencement of the first year of assessment collection. The word "parcel," for the purposes of this Report, refers to an individual property assigned its own Assessor's Parcel Number (APN) by the Los Angeles County Assessor's Office. The Los Angeles County Auditor -Controller uses APNs and specific Fund Numbers to identify properties to be assessed on the tax roll for the special benefit assessments. As part of this District formation, the City shall conduct a property owner protest ballot proceeding for the proposed levy of a new assessment pursuant to the provisions of the California Constitution, Article XIII D Section 4. In conjunction with this ballot proceeding, the City Council will conduct a public hearing to consider public testimonies, comments and written protests regarding the formation of the District and levy of assessments. Upon conclusion of the public hearing, property owner protest ballots received will be opened and tabulated to determine whether majority protest exists (ballots shall be weighted based on the calculated proportional assessment amount for each benefiting parcel), and by resolution the City Council will confirm the results of the ballot tabulation. If majority protest exists, proceedings for the formation of the District and the levy of the proposed assessments shall be abandoned. If tabulation of the ballots indicates that majority protest does not exist for the proposed assessments and the assessment range formula *"W I LLDAN Page 1 Engineer's Report City of Santa Clarita Drainage Benefit Assessment Area No. 2025-1 (Sand Canyon Plaza - Tract Nos. 53074 & 53074-01) presented and described herein, the City Council may approve the Report (as submitted or amended), order the formation of the District, and approve the levy and collection of assessments. In such case, the assessments for Fiscal Year 2026/2027 shall be submitted to the Los Angeles County Auditor -Controller for inclusion on the property tax roll for each parcel. Each subsequent fiscal year, a Report shall be prepared and presented to the City Council describing any changes to the improvements, the proposed services, the annual budget and assessments for that fiscal year, and the City Council shall hold a noticed public hearing regarding these matters prior to approving and ordering the proposed levy of assessments. This Report consists of five (5) parts. Part I Plans and Specifications: A description of the District boundaries and the proposed improvements associated with the District. The District is being formed with a single benefit zone encompassing all properties within the territory identified as Drainage Benefit Assessment Area No. 2025-1 (Tract Nos. 53074 and 53074-01). Part II Method of Apportionment: A discussion of benefits the improvements and services provide to properties within the District and the method of calculating each property's proportional special benefit and annual assessment. This section also identifies and outlines an Assessment Range Formula that provides for an annual adjustment to the maximum assessment rate that establishes limits on future assessments but also provides for reasonable cost adjustments due to inflation without the added expense of additional property owner protest ballot proceedings. Part III District Budget: An estimate of the annual costs to operate, maintain and service drainage improvements related to the properties within the District. This budget includes an estimate of anticipated direct maintenance costs and incidental expenses including but not limited to administration expenses and the collection of appropriate fund balances to establish an initial maximum assessment to be approved by the property owners of record. The special benefit maximum assessment proposed for this District is based on an estimate of the annual maintenance and operational expenses at full build out of the improvements. The proposed assessments for the first fiscal year (2026/2027), and each subsequent year shall be based on the estimated net annual cost of operating, maintaining and servicing the District improvements for that fiscal year. The proposed maximum assessment (Rate per Equivalent Benefit Unit) identified in the budget of this Report establishes the initial maximum assessment rate for the District in Fiscal Year 2025/2026 and shall be adjusted annually by the Assessment Range Formula described in Part II, Method of Apportionment. Part IV District Diagram: A Diagram showing the exterior boundaries of the District is provided in this Report and includes all parcels that will receive special benefits from the improvements. Parcel identification, the lines and dimensions of each lot, parcel and subdivision of land within the District, are inclusive of all parcels as shown on the Los Angeles County Assessor's Parcel Maps as they existed at the time this report was prepared and includes all subsequent subdivisions, lot line adjustments or parcel changes therein. Reference is hereby made to the Los Angeles County Assessor's maps for a detailed description of the lines and dimensions of each lot and parcel of land within the District. Part V Assessment Roll: A listing of the proposed assessment amount to be presented to the property owners of record during the protest ballot proceedings required pursuant to the provisions of the California Constitution. The proposed assessment amount for each parcel is based on the parcel's proportional special benefit as outlined in the method of apportionment and the proposed initial maximum assessment rate. *"W I LLDAN Page 2 Engineer's Report City of Santa Clarita Drainage Benefit Assessment Area No. 2025-1 (Sand Canyon Plaza - Tract Nos. 53074 & 53074-01) DISCLAIMER If any section, subsection, sentence, clause, phrase, portion, zone, or subzone of this Report is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining provisions of the Report and each section, subsection, subdivision, sentence, clause, phrase, portion, zone, or subzone thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, portions, zones, or subzones might subsequently be declared invalid or unconstitutional. *"W I LLDAN Page 3 Engineer's Report City of Santa Clarita Drainage Benefit Assessment Area No. 2025-1 (Sand Canyon Plaza - Tract Nos. 53074 & 53074-01) PART I - PLANS AND SPECIFICATIONS PROPERTIES WITHIN THE DISTRICT Drainage Benefit Assessment District No. 2025-1 will encompass Tract Nos. 53074 and 53074-01, which includes residential, commercial, and institutional land uses. The residential program consists of 576 dwelling units, comprising of 259 apartment units within a single multi -family complex, 64 attached townhome units, 59 duplex structures containing 118 dwelling units, and 135 detached condominium units. The tract also includes commercial parcels totaling approximately 45,000 square feet of retail and restaurant use, including a Sprouts market, associated pad buildings and a drive -through Starbucks. In addition, one (1) assisted living facility of approximately 137,149 square feet with 140 beds is located on a single institutional parcel. Collectively, these components result in a mixed -use development that includes residential, commercial, and institutional development benefiting from the shared drainage system improvements. The purpose of the District is to ensure the ongoing maintenance, operation, and servicing of drainage improvements installed in connection with development of properties within the District. This District will provide the financial mechanism (annual assessments) by which the ongoing operation and maintenance of these improvements will be funded. The District structure, proposed improvements, method of apportionment and assessments described in this Report are based on current development and improvement plans including estimated direct expenditures, incidental expenses, and reserves associated with the maintenance and servicing of the improvements. The District is located within the boundaries of the City of Santa Clarita, generally situated along Sand Canyon Road. FUNDING AUTHORIZED BY THE 1982 ACT As defined by the 1982 Act and applicable to this District, the City may impose a benefit assessment to finance the maintenance and operation costs of the following services: 1) Drainage; and 2) Flood Control. In addition to imposing a benefit assessment for the annual maintenance and operation of the District improvements, the City may also authorize an assessment or utilize existing assessment revenues to finance the installation, construction, or replacement of drainage and flood control facilities. While such activities are permitted under the 1982 Act, the budget and assessments for this District provide only for normal maintenance and operation of the improvements. Since most major rehabilitation or construction projects result from unforeseen damages, the extent and cost of such projects are not easily predicted, and to accumulate funds as part of the normal annual assessments is not practical. If such funding becomes necessary, the City may present a new or increased assessment to the property owners to support such projects in accordance with the requirements of Proposition 218. IMPROVEMENTS AND SERVICES The purpose of this District is to fund the activities necessary to maintain and service the corresponding drainage improvements required of properties within the District. The maintenance and operation of these improvements may include but are not limited to all materials, equipment, labor, and incidental expenses deemed necessary to keep these improvements in satisfactory condition, as well as the collection of assessment installments for periodic service 'O/W I LLDAN Page 4 Engineer's Report City of Santa Clarita Drainage Benefit Assessment Area No. 2025-1 (Sand Canyon Plaza - Tract Nos. 53074 & 53074-01) activities, repair or rehabilitation of various improvements and facilities (not capital improvements expenditures or replacement of the drainage infrastructure). Detailed maps and descriptions of the location and extent of the improvements to be maintained by the District are on file with the Environmental Services Division and by reference are made part of this Report. These plans and specifications may be amended or modified from time to time to reflect future property development within the District or necessary changes to the planned developments currently approved by the City. The net annual cost to provide and maintain the improvements determined to be of special benefit shall be allocated to each property in proportion to the special benefits received from those various improvements. The District improvements and services are generally described as follows. DRAINAGE MAINTENANCE The drainage system serving the Sand Canyon Plaza development will discharge stormwater into new underground storm drainpipes constructed within and adjacent to Sand Canyon Road, ultimately connecting to regional infrastructure and flowing to the Santa Clara River. The system consists of approximately 359 linear feet of 18"-36" reinforced concrete pipe (RCP), one storm drain manhole, and two cast -in -place catch basins with local depressions for sediment capture. These structures are designed to convey and manage runoff generated from new roadways, commercial pads, and residential areas throughout Tract Map Nos. 53074 and 53074-01. In addition to the conveyance elements, two low -flow 12" HDPE drains and one grated inlet (24" x 24") are incorporated to manage base flows and provide water quality pretreatment. These features work to filter debris and pollutants prior to discharge. All improvements are designed in accordance with MTD 1697 and RG plan sheets, as referenced in the final drainage maintenance exhibit. This drainage system replaces earlier concepts involving CDS units or natural biofiltration basins, instead relying on a robust underground pipe network and engineered treatment points located within the public right-of-way. The City of Santa Clarita will assume maintenance responsibility for these facilities, which will be funded through Drainage Benefit Assessment Area No. 2025-1. 'O/W I LLDAN Page 5 Engineer's Report City of Santa Clarita Drainage Benefit Assessment Area No. 2025-1 (Sand Canyon Plaza - Tract Nos. 53074 & 53074-01) PART II - METHOD OF APPORTIONMENT The 1982 Act permits the establishment of assessment districts by agencies for the purpose of providing for the maintenance, operation and servicing of drainage and flood control improvements as well as streets, roads, and appurtenant facilities. The 1982 Act further requires that the cost of these improvements be levied according to benefit rather than assessed value: "The amount of the assessment imposed on any parcel of property shall be related to the benefit to the parcel which will be derived from the provision of the service." Furthermore: "The annual aggregate amount of the assessment shall not exceed the estimated annual cost of providing the service, except that the legislative body may, by resolution, determine that the estimated cost of work authorized ... is greater than can be conveniently raised from a single annual assessment and order that the estimated cost shall be raised by an assessment levied and collected in installments.... The revenue derived from the assessment shall not be used to pay the cost of any service other than the service for which the assessment was levied. The method of apportionment described in this Report for allocation of special benefit assessments reflects the composition of parcels within the District and the improvements and services provided, to fairly apportion the costs based on the special benefits to each parcel. SPECIAL BENEFIT The improvements proposed for maintenance within the District provide a direct and particular special benefit to the properties within Sand Canyon Plaza (Tract Nos. 53074 and 53074-01). These benefits arise from the construction and operation of a closed drainage system designed specifically to manage on -site runoff generated by impervious surfaces such as streets, driveways, rooftops, and commercial pads within the District. The improvements do not serve any upstream or off -site parcels and are not designed or sized to accommodate regional drainage flows or public access. The storm drains improvements include reinforced concrete pipe, manholes, catch basins, low flow drains, and grated inlets. They function to mitigate site -generated runoff and provide critical stormwater conveyance and localized flood protection solely for the development area. The operation and maintenance of this infrastructure preserve the full use, marketability, and safety of each benefited parcel and thus confers a distinguishable and proportional special benefit. Based on the location, function and contained service area of the improvements, it is determined that ninety-five percent (95%) of the total annual cost of maintenance and servicing constitutes special benefit to the parcels within the District. This allocation reflects the direct and exclusive relationship between the drainage infrastructure and the benefiting parcels. Accordingly, the five percent (5%) remaining portion is attributed to incidental general benefit, which will not be assessed to the parcels. The ninety-five percent (95%) figure is consistent with applicable assessment engineering principles and the requirements of Proposition 218 (Article XIII D of the California Constitution) for internal, non-public infrastructure serving a defined set of benefited parcels. GENERAL BENEFIT A general benefit is defined under Article XIII D, Section 2(i) of the California Constitution as any benefit to the public at large, to the community in general, or to real property outside the boundaries of the area being assessed. The drainage improvements within this District are specifically designed to capture, convey, and manage runoff generated solely from impervious surfaces within the District boundary. These facilities are not sized or configured to accommodate regional flows or off -site drainage contributions. Wt'W I LLDAN Page 6 Engineer's Report City of Santa Clarita Drainage Benefit Assessment Area No. 2025-1 (Sand Canyon Plaza - Tract Nos. 53074 & 53074-01) However, a minor portion of the improvements' function may provide incidental advantages to the broader public. Such benefits may include negligible improvements to downstream storm drain system performance, incremental water quality enhancements, or improved hydraulic continuity within the City's overall municipal stormwater network. These effects are secondary in nature and do not constitute a direct or measurable benefit to properties outside the District. To maintain a conservative and supportable approach consistent with the proportionality requirements of Proposition 218, a general benefit component of five percent (5%) of the total annual maintenance and servicing cost has been assigned. This allocation reasonably represents the incidental public or regional advantages derived from the improvements. In accordance with Proposition 218 and established assessment engineering practices, these general benefit costs will be funded entirely from non -assessment revenues, ensuring that only the special benefits are subject to assessment within the District. ASSESSMENT METHODOLOGY All costs associated with the improvements and services shall be fairly distributed among the parcels based upon the special benefit received by each parcel. Additionally, in compliance with the California Constitution Article XIII D Section 4, each parcel's assessment may not exceed the reasonable cost of the proportional special benefit conferred to that parcel. The method of apportionment established for this District and described herein; reflects the proportional special benefit each property receives from the improvements and services based on the actual or proposed land use of that parcel as compared to other properties within the District. The benefit formula used to determine the assessment obligation for each parcel is based upon both the type of improvements that benefit that particular parcel as well as the proposed land use of each property as compared to other parcels that benefit from those specific improvements. Upon review of the improvements and the proposed development of properties within the District it has been determined that all properties receive similar special benefits from each of the improvements and services to be funded by annual assessments and a single zone of benefit is appropriate for the allocation of the assessments and proportional special benefit. EQUIVALENT BENEFIT UNITS To assess benefits equitably it is necessary to relate each property's proportional special benefits to the special benefits of other properties within the District. The method of apportionment established for most districts formed under the 1982 Benefit Act utilizes a weighted method of apportionment known as an Equivalent Benefit Unit (EBU) methodology that uses a weighted EBU based on an assessment formula that equates the property's specific development characteristics such as land use and size to that of other properties in the District. The District is primarily residential in nature; therefore, a single-family residential unit or lot is assigned one (1.0) EBU and other property types (land uses) are proportionately weighted (weighted EBU) based on a benefit formula that equates each property's specific characteristics and special benefits to that of the single-family residential unit. Based on the planned development of properties in Tract Nos. 53074 and 53074-01, the following land use classifications and proportional EBUs are outlined as follows. Residential Property— defined as fully subdivided or developed parcels intended for residential use, including single- family homes, duplexes, townhomes, and multi -family developments. The following classifications establish proportional special benefits and EBUs for each residential type based on their relative drainage impact and use characteristics: • Single -Family Residential/Townhome/Condominium: defined as a detached or attached dwelling unit located on an individual fee -simple lot or within a condominium subdivision where each unit is separately owned. This land use classification serves as the base unit of assessment and reflects drainage characteristics comparable to a single-family parcel. Each single-family residential, townhome, or condominium unit shall be assigned 1.000 Equivalent Benefit Unit (EBU) per parcel or unit. W"W I LLDAN Page 7 Engineer's Report City of Santa Clarita Drainage Benefit Assessment Area No. 2025-1 (Sand Canyon Plaza - Tract Nos. 53074 & 53074-01) Multi -Family Residential: defined as parcels developed with two or more attached or semi -attached dwelling units contained within one or more structures on a shared lot, including duplexes, triplexes, fourplexes, apartments, and condominiums. These properties exhibit reduced impervious area perdwelling unit compared to detached single-family lots due to shared walls, common driveways, and consolidated open -space areas. To maintain proportionality with respect to drainage demand, all multi -family residential parcels shall be assigned 0.750 Equivalent Benefit Units (EBUs) per dwelling unit, reflecting the typical average runoff characteristics of attached residential development. Non -Residential Property— defined as a parcel or group of parcels developed or intended for commercial, industrial, institutional, or other non-residential use, including retail, office, warehouse, manufacturing, parking structures, service, educational, assisted living, religious, and governmental facilities. These properties generally include large structures, paved parking areas, loading zones, and other impervious surfaces that generate comparable levels of stormwater runoff. To ensure proportional special benefit consistent with the single-family residential baseline of 0.09 acre per dwelling unit, non-residential parcels are assigned Equivalent Benefit Units (EBUs) in proportion to parcel area. Each one (1.00) acre of non-residential property is therefore assigned 11.11 EBUs (1 = 0.09 = 11.11); however, for administrative simplicity, non-residential parcels shall be assigned 11.00 EBUs per acre, rounded to the nearest one - hundredth (0.01) EBU, with a minimum of 1.00 EBU for any developed non-residential parcel. Vacant Property — defined as a parcel that is currently undeveloped but has reasonable potential for future development, with few or no restrictions limiting its buildout. The proportional special benefits associated with vacant property are less than those of developed parcels because on -site drainage infrastructure is typically not yet installed; however, these parcels continue to receive benefit from the overall drainage improvements provided by the District, including regional facilities such as detention basins, underground conveyance systems, and inlets that manage area - wide runoff. To maintain proportionality with respect to parcel size and potential drainage impact, vacant parcels shall be assigned 0.500 Equivalent Benefit Units (EBUs) per acre, recognizing a reduced but ongoing level of benefit relative to developed properties while accounting for the absence of on -site improvements. Special Case Property — defined as a parcel or group of parcels that do not conform to the standard land use classifications due to unique characteristics, development phasing, or other special conditions. These properties may require individual evaluation when the standard land use categories do not accurately reflect the property's use or the level of special benefit received from the District improvements. The Equivalent Benefit Units (EBUs) assigned to such properties will vary based on site -specific conditions and the justification for treating each parcel as a Special Case. EBU assignments may be determined using adjusted acreage, dwelling unit counts, planned subdivision lots, or a combination of these factors. The City and the assessment engineer responsible for District administration shall review each designated Special Case Property annually and adjust its land use classification or EBU assignment as necessary to maintain proportionality and consistency within the District. Exempt Property — identifies a parcel that for various reasons has been determined that it does not and will not receive special benefits from the improvements. This land use classification may include but is not limited to: Lots or parcels identified as public streets and other roadways (typically not assigned an APN by the County); • Dedicated public easements including open space areas, utility rights -of -way, greenbelts, parkways, or other publicly owned or utility -owned land that serves the community or general public and are not considered or classified as developed public properties; and • Parcels of land that are privately owned but cannot be developed independently from an adjacent property or is part of a shared interest with other properties, such as common areas, sliver parcels, bifurcated lots or properties with very restrictive development potential or use. Because these properties either provide a public service that is comparable to landscaping or street lighting improvements, or they are dependent on another property or development, these types of parcels have no direct need for such improvements and are considered to receive no special benefits Therefore these parcels shall be exempt from assessment and are assigned 0.0000 EBU. However, these properties shall be reviewed annually by the assessment engineer to confirm the parcel's use and/or development status has not changed. W"W I LLDAN Page 8 PROPOSED LAND USE Single -Family Residential/Townhome/Condominium Multi -Family (2 or more units) Non -Residential Property Vacant Property Special Case Property Exempt Parcel ASSESSMENT CALCULATIONS Engineer's Report City of Santa Clarita Drainage Benefit Assessment Area No. 2025-1 (Sand Canyon Plaza - Tract Nos. 53074 & 53074-01) 1.00 per Unit 0.75 per Unit 11.00 per Acre 0.50 per Acre Variable (Based on site -specific conditions) 0.00 per Lot/Parcel The total number of Equivalent Benefit Units (EBUs) is the sum of all individual EBUs applied to parcels that receive special benefit from the improvements. An assessment amount per EBU (Assessment Rate) for the improvements is established by taking the total cost of the improvements and dividing that amount by the total number of EBUs of all parcels benefiting from the improvements. This rate is then applied back to each parcel's individual EBU to determine the parcel's proportionate benefit and assessment obligation for the improvements. Total Balance to Levy / Total EBU = Levy per EBU Levy per EBU x Parcel EBU = Parcel Levy Amount ASSESSMENT RANGE FORMULA Any new or increased assessment is subject to the noticing and approval requirements of Proposition 218 (California Constitution, Articles XIII C and XIII D). However, under Government Code § 53750(h), enacted through Senate Bill 919 (the Proposition 218 Implementation Act), an assessment is not considered "increased" if it is levied at or below the maximum rate or within the methodology previously approved by property owners or voters, including adjustments made under a pre -approved inflationary formula or schedule. A Proposition 218 ballot proceeding would only be required if a future adjustment proposes to raise the assessment rate above the maximum amount previously approved by property owners. The purpose of establishing an Assessment Range Formula is to provide for reasonable increases and inflationary adjustment to annual assessments without requiring costly noticing and mailing procedures. Commencing with Fiscal Year 2026/2027, the amount of the maximum assessment will increase to adjust for increases in labor and material costs. This increase will be based upon the annual change in the Consumer Price Index, All Urban Consumers, for the Los Angeles -Long Beach -Anaheim Area, as determined by the United States Department of Labor, or its successor, without conducting another mailed ballot election. W"W I LLDAN Page 9 Engineer's Report City of Santa Clarita Drainage Benefit Assessment Area No. 2025-1 (Sand Canyon Plaza - Tract Nos. 53074 & 53074-01) The Maximum Assessment is adjusted annually and is calculated independent of the annual budget and proposed annual assessment. Any proposed annual assessment (rate per EBU less than or equal to this Maximum Assessment) is not considered an increased assessment, even if the proposed assessment is greater than the assessment applied in the prior fiscal year. Although the Maximum Assessment will increase each year, the actual assessment may remain unchanged. The Maximum Assessment adjustment is designed to establish a reasonable limit on assessments. The Maximum Assessment calculated each year does not require or facilitate an increase to the annual assessment and neither does it restrict assessments to the adjusted maximum amount. If the budget and assessment for the fiscal year do not require an increase, or the increase is less than the adjusted Maximum Assessment, then the required budget and assessment may be applied without additional property owner balloting. If the budget and assessments calculated requires an increase greater than the adjusted Maximum Assessment, then the assessment is considered an increased assessment and would be subject to balloting. 'O/W I LLDAN Page 10 Engineer's Report City of Santa Clarita Drainage Benefit Assessment Area No. 2025-1 (Sand Canyon Plaza - Tract Nos. 53074 & 53074-01) PART III - DISTRICT BUDGET The Benefit Assessment Act of 1982 (hereinafter "the Act") provides that the estimated costs of the improvements shall include all costs associated with the maintenance and servicing of those improvements, together with all incidental expenses. Such incidentals may include reasonable reserves necessary to operate the District prior to the receipt of assessment revenues and to ensure continuity of maintenance activities. The Act also provides that any surplus, deficit, or contribution shall be incorporated into the estimated cost of improvements each year. Accordingly, the net amount to be assessed to parcels within the District represents the total annual cost of operation, maintenance, and servicing, inclusive of adjustments for reserves, surpluses, deficits, and/or City contributions. The budget on the following page identifies the estimated annual costs deemed necessary for the proper maintenance, inspection, and administration of the storm drain improvements within the District. These costs do not include construction or acquisition of new facilities but are limited to ongoing maintenance and related administrative functions. The budget also establishes two reserves: an Operating Reserve to provide working capital and cash -flow stability between assessment collections, and a Capital Renovation Reserve for major maintenance activities intended to extend the service life of the existing facilities. The maximum assessment rate (Rate per Equivalent Benefit Unit) established herein defines the initial maximum rate for Fiscal Year 2025/2026, the formation year of the District. The Assessment Roll for Fiscal Year 2025/2026 documents these rates and provides the basis for determining the first levy and collection of assessments in Fiscal Year 2026/2027. The first -year levy will reflect application of the Assessment Range Formula to the Fiscal Year 2025/2026 maximum rate to account for inflation and other cost adjustments, as permitted under Article XIII D of the California Constitution (Proposition 218). Thereafter, the maximum rate shall be adjusted annually by the Assessment Range Formula described in Part II, ensuring that all future assessments remain proportional to the special benefits conferred and consistent with constitutional and statutory requirements. W"W I LLDAN Page 11 Engineer's Report City of Santa Clarita Drainage Benefit Assessment Area No. 2025-1 (Sand Canyon Plaza - Tract Nos. 53074 & 53074-01) DBAA No. 2025-1 (Tract Nos. 53074 & 53074-01) Fund Number TBD QuantityUnit Maintenance Cost Catch Basin 4' EA 1 Maintenance and Inspections $550.00 1 $550 Catch Basin 7' EA 1 Maintenance and Inspections $850.00 1 $850 Storm Drain Manholes EA 1 Maintenance and Inspections $725.000 1 $725 General Storm Drain Items EA 359 Maintenance and Inspections 1 $1,750 Low Flow Drains EA 56 Maintenance and Inspections $250.000 1 $250 $4,125 Total Maintenance Administrative Cost City Personnel Cost $1,031 Engineer's Report/ Annual Assessment Calculation $2,500 $3,531 Total Administrative Cost Reserves Operating Reserve (50%) $3,828 Annual Capital Renovation Reserve $2,002 $5,830 Total Reserves $13,486 Total Maintenance, Administration & Operating Cost Less: Contribution for General Benefit $674 $12,812 Total Assessment Amount to be Levied EQUIVALENT BENEFIT UNITS AND RATES Town homes/Detached Condominiums Dwelling EBUs 317 317.00 Apartment 259 194.25 Non -Residential 9.49 114.29 Total EBUs 625.54 Assessment Rate $ 20.48 Maximum Rate $ 20.48 'O/W I LLDAN Page 12 Engineer's Report City of Santa Clarita Drainage Benefit Assessment Area No. 2025-1 (Sand Canyon Plaza - Tract Nos. 53074 & 53074-01) Catch Basins (4-Foot and 7-Foot) — includes the cost of scheduled inspections, cleaning, and removal of accumulated debris, silt, and sediment to ensure proper inlet flow and prevent blockages. Storm Drain Manhole — includes inspection and maintenance of a manhole to confirm accessibility and structural integrity, as well as the removal of sediment and debris that may impede flow or compromise connections between drainage segments. General Storm Drain Items — includes general inspection, maintenance, and repair of storm drain segments, inlets, junctions, and appurtenances not otherwise listed. This category covers routine upkeep necessary to preserve the hydraulic capacity of the underground drainage system. Low Flow Drains — includes the cost of periodic inspection, cleaning, and flushing of low -flow drainage facilities designed to convey minor dry -weather runoff and provide water quality treatment prior to discharge to downstream systems. Total Maintenance — represents the sum of all maintenance and inspection activities for the drainage system components identified above. Administrative Cost — includes City personnel time, consultant costs, and related expenses for administration of the District. This includes the preparation of the annual Engineer's Report, calculation of annual assessments, coordination of assessment roll submittals to the County, and ongoing oversight of the District's operations and budget compliance. Reserves — includes the following two reserve components: (1) an Operating Reserve equivalent to fifty percent (50%) of the annual maintenance and administration costs to fund District operations prior to receipt of assessment revenue each fiscal year; and (2) an Annual Capital Renovation Reserve to provide for future replacement, rehabilitation, or significant repair of drainage facilities as they reach the end of their service life. Total Maintenance, Administration, and Operating Cost — represents the total annual cost of maintenance, administrative functions, and reserve funding required to operate and maintain the District. Less: Contribution for General Benefit — represents the portion of the total annual cost attributed to general benefit, to be funded by non -assessment revenues such as City funds. Total Assessment Amount to be Levied — represents the net annual amount to be funded by special benefit assessments levied on properties within the District. CAPITAL REPLACEMENT RESERVE Replacement Cost Catch Basin 2 $14,000.00 20 $700.00 Manhole 1 $4,000.00 40 $100.00 Pipes (RCP) 359 $48,020.00 50 $960.40 Grated Inlet 1 $3,000.00 25 $120.00 Water Quality Drains 56 $3,640.00 30 $121.33 1 $2,002 Total Annual Replacement Cost I 1 'O/W I LLDAN Page 13 Engineer's Report City of Santa Clarita Drainage Benefit Assessment Area No. 2025-1 (Sand Canyon Plaza - Tract Nos. 53074 & 53074-01) PART IV - DISTRICT DIAGRAM The following District Diagram identifies the area of land within the District to be designated as "Drainage Benefit Assessment Area No. 2025-1 (Tract Nos. 53074 and 53074-01)," based on the approved development and improvement plans for the District and available Los Angeles County Assessor's property information at the time this Report was prepared. The parcel configuration within the District is currently undergoing subdivision and parcelization; therefore, the specific Assessor's Parcel Numbers (APNs) identified in this Report represent the parent parcels as they existed at the time of preparation. Upon completion of the subdivision process and assignment of new APNs by the Los Angeles County Assessor's Office, the District Diagram and Assessment Roll will be updated to reflect the finalized parcel configuration. The combination of this map and the Assessment Roll contained in Part V of this Report shall constitute the Assessment Diagram for the District. The maximum assessment rate, assessment range formula, and proposed assessment amounts for all parcels within the District, as described herein, shall be presented to the property owners of record for approval or protest in accordance with the provisions of the California Constitution. Detailed District Drainage Diagrams are on file with the City and available upon request. 'O/W I LLDAN Page 14 Engineer's Report City of Santa Clarita Drainage Benefit Assessment Area No. 2025-1 (Sand Canyon Plaza - Tract Nos. 53074 & 53074-01) PART V -ASSESSMENT ROLL Parcel identification within the District is based on available parcel maps and property data from the Los Angeles County Assessor's Office at the time this Engineer's Report was prepared, as outlined in the preceding Assessment Diagram. The Assessment Roll establishes the maximum assessment amounts for Fiscal Year 2025/2026, the formation year of the District. The first levy, in Fiscal Year 2026/2027, will be based on the Fiscal Year 2025/2026 maximum rate, adjusted by the Assessment Range Formula in accordance with Article XIII D of the California Constitution (Proposition 218). The following table lists all lots and parcels to be assessed in Fiscal Year 2026/2027, along with the corresponding assessment amount for each parcel calculated pursuant to the approved method of apportionment and adjusted rate. If any parcel submitted for collection is identified by the County Auditor -Controller to be an invalid parcel number for the fiscal year, a corrected parcel number and/or new parcel numbers will be identified and resubmitted to the County Auditor -Controller. The assessment amount to be levied and collected for the resubmitted parcel or parcels shall be based on the method of apportionment and assessment rates described in this Report as approved by the City Council. Accordingly, if a single parcel is subdivided into multiple parcels, the assessment amount applied to each new parcel shall be recalculated and applied according to the approved method of apportionment and assessment rate, rather than as a proportionate share of the original assessment amount. The following is a list of the lots and parcels of land within the District and the corresponding maximum assessments being set for Fiscal Year 2025/2026, as determined by the assessment rate and method of apportionment described herein and approved by the City Council in compliance with Article XIII D of the California Constitution (Proposition 218). W"W I LLDAN Page 15