HomeMy WebLinkAboutSR - LMD-94-1 - 2015-16 ANNUAL ASSESSMENT ENGINEERS REPORT (2)AGENDA ITEM
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June 9, 2015
TO: Honorable Mayor and
Members of the City Council
THRU: Rick Otto
Interim City Mana er
FROM: Joe DeFrancesco c
Public orks i e for
Marie fight
Community Sery ces Dire o
1. SUBJECT
ReviewedNerified
City Manager
Finance Direct
To Be Presented By:
Joe DeFrancesco
Cons Calendar
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Resolution No. 10871 - A Resolution of the City Council of the City of Orange approving the
Engineer's Report and providing for the Annual Assessment for Landscape Maintenance
Assessment District 94 -1 (Sycamore Crossing).
1 2. SUMMARY
Each year the process of setting the assessment for the Landscape Maintenance Districts is
initiated. The process began on May 12, 2015 with the City Council approval of Resolution No.
10863 which approved the Preliminary Engineers Report for LMD 94 -1 and set June 9, 2015 as
the date for the public hearing. This is the second step in the process. This public hearing is held
in accordance with the Lighting and Landscape Maintenance Act of 1972 as outlined in the
"Order of Procedure ". At this time, property owners will have an opportunity to be heard on this
issue. The proposed assessments for Fiscal Year 2015/2016 will not increase and will remain the
same as last year at $293.08 per single family detached unit. This is the maximum allowable
assessment. The total assessment to be levied in Landscape Maintenance District 94 -1
(Sycamore Crossing) will be $47,877.00.
3. RECOMMENDED ACTION
Adopt Resolution No. 10871 approving the Engineer's Report for the Annual Assessment for
Landscape Maintenance Assessment District 94 -1 (Sycamore Crossing).
2. Establish the assessment for Fiscal Year 2015/2016 for Landscape Maintenance Assessment
District 94 -1 at $293.08 per single family unit per year.
4. FISCAL IMPACT
The District pays all costs of District administration and related activities. The City will pay
$117.23 and $58.62 annually for two City owned lots within the District. The assessment
revenue for Fiscal Year 2015/2016 will be placed in Fund Number 293.
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DATE OF MEETING:
5. STRATEGIC PLAN GOAL(S)
3a. Enhance and promote quality of life in the community - refurbish, maintain, develop and /or
expand public use places and spaces.
6. GENERAL PLAN IMPLEMENTATION
Land Use Element Goal 6.0 Advance development activity that is mutually beneficial to both
the environment and the community.
Policy 6.3 - Establish and maintain greenways and pedestrian and bicycle connections that
complement the residential, commercial and open space areas they connect.
Policy 6.8 - Maximize landscaping along streetscapes and within development projects to
enhance public health and environmental benefits.
7. DISCUSSION and BACKGROUND
In 1995, Landscape Maintenance District No. 94 -1 was established to maintain the landscape and
flood control improvements along Santiago Creek that were constructed by Tract No. 14752
(Sycamore Crossing). Resolution 8462 approved Conditional Use permit 2088 -94 for Tentative
Tract 15053 (Sycamore Crossing) and Resolution 8463 approved Tentative Tract Map 15053,
which is a part of Tract 14751. Both resolutions contain the following condition:
"To the satisfaction of the City of Orange's Public Works Department and City Engineer,
prior to the recordation of Final Tract Map 15053, the City shall form a landscape
maintenance district which shall include the project for the purpose of levying and collecting
an assessment to maintain the open space dedicated to the City by Tentative Tract 14752
and defining in Exhibit E -1 of the development agreement for this project. Said assessment
shall not exceed the sum of $28.00 per month per residential unit in the project but may
increase annually in accordance with the applicable increase maintenance cost index as
provided in the Engineering News Record or such other comparable index as the parties
shall agree. The future homeowner's contributions (financial payments) towards the
maintenance of Santiago Creek open space shall be included in the disclosure requirement to
future buyers."
Annually, a detailed accounting of expenses is done and a new assessment is calculated for the
benefiting property owners. All assessments are recommended to remain the same for Fiscal
Year 2015/2016 as they are for the current fiscal year. The 124 units in the interior of the Tract
are currently assessed at $293.08 which is the maximum allowable assessment by Proposition
218. The 36 units adjacent to the landscape improvement are currently assessed at $298.94 per
unit. The senior citizens housing site is currently assessed at $597.88 per year. Due to
requirements of Proposition 218, the two lots within the District boundary owned by the City of
Orange are not exempt and will be assessed as well. The larger lot for recreation purposes is
assessed at $117.23 per year and the smaller lot for future water well site is $58.62 per year.
The total expenditure for Fiscal Year 2014 -15 is estimated to be $51,776.00. The proposed
assessment will generate $47,877.00 in revenue. The projected year -end Reserve Fund balance
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is $25,812.00 and the District is funded entirely by annual assessment revenue. The fund balance
will be used for repairs and replacement of infrastructure such as fences and landscape. Staff has
been reducing expenditures during the last three fiscal years to maintain District expenditures
within revenues, however maintenance and utility costs (primarily water) continue to rise,
resulting in the need to maintain reduced service and utility costs. Cost reducing measures that
have been employed include reducing landscape areas, the frequency of landscape service, staff
oversight and deactivation of the trail lighting system.
During this current fiscal year, a portion of the Landscape Coordinator salary for the oversight of
the District, approximately $2,500 has been charged to the District. The Landscape Coordinator
position has been vacant and other staff has been providing limited oversight of the District and
its contract services. The salary savings to the District has reduced the impact of the rising
maintenance costs of the District but also resulted in very limited oversight and management of
the District maintenance. The temporary reduction of salary costs to the District however, cannot
be a factor in budgeting for future years, as staff oversight will need to be addressed in the long
term.
The estimated District expenditure for the current fiscal year is approximately $51,776.00. The
fund balance can support the deficit from revenue for approximately 5 -6 years.
8. ATTACHMENTS
• Resolution No. 10871
• Engineer's Report
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N:\Public Works\ADMIN \ADMIN\LYoung\LYoung \Council Items \COUNCILUune - 2015 \6- 09\LMD 94 -1 Public Hearing Agenda FY 2015- 16.doc
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RESOLUTION NO. 10871
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ORANGE APPROVING THE ENGINEERS REPORT AND
PROVIDING FOR THE ANNUAL ASSESSMENT FOR
LANDSCAPE MAINTENANCE DISTRICT 94 -1 (SYCAMORE
CROSSING).
WHEREAS, the City Council of the City of Orange has previously formed a special maintenance
district pursuant to the terms of the "Landscaping and Lighting Act of 1972" being part 2 of Division 15
of the Streets and Highways Code of the State of California, in what is known and designated as
Landscape Maintenance District No. 94 -1 (hereinafter referred to as "Assessment District "); and
WHEREAS, the City Council has initiated proceedings for the levy of the annual assessment for
the Assessment District; and
WHEREAS, at this time a public hearing has been held in the manner and form as required by
law, and the City Council has considered all oral statements and written protests made or filed by all
interested persons; and
WHEREAS, this City Council is now satisfied with the assessment and diagram and all other
matters as contained in the Engineer's Report as now submitted for final consideration and approval, and
is now desirous of proceeding with the levy of the annual assessment.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orange as
follows:
Section I•
That the above recitals are all true and correct.
Section II•
That all protests and objections of every kind and nature by, and the same hereby are, overruled
and denied.
Section III:
That the Final Engineer's Report consisting of the final submitted assessment and diagram for the
proceedings, is hereby approved and confirmed and a copy of said Report is hereby filed with the City
Clerk.
Section IV•
That the assessments for fiscal year 2015/2016 be established as approved by the City Council,
and are hereby confirmed and levied upon the respective subdivisions of land in the Assessment District
in the amounts as set forth in said final approved Engineer's Report.
Section V•
The City Clerk shall immediately accomplish the following:
A. Deliver to the City Engineer the assessment, together with the diagram attached thereto and
made a part thereof, as confirmed, with a Certificate of Confirmation attached and the date thereof. Said
City Engineer shall then immediately place for a record said diagram and assessment in his office in a
suitable book as a permanent record and attach a Certificate of Recordation.
B. Cause to be filed a certified copy of a diagram and assessment with the County Auditor, said
filing to be completed no later than the 3 ` Monday in August.