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RES-11236 Annual Assessments for Landscape Maint. Districts 86-2 and 15-1_Santigo HillsRESOLUTION N0. 11236 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ORANGE APPROVING THE ENGINEER'S REPORTS AND PROVIDING FOR THE ANNUAL ASSESSMENTS FOR LANDSCAPE MAINTENANCE DISTRICTS 86-2 (SANTIAGO HILLS) AND 15-1 SANTIAGO HILLS OVERLAI. WH REAS, the City Council of the City of Orange has previously formed two special maintenance districts 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. 86-2 and Landscape Maintenance District No. 15-1 (hereinafter referred to as"Assessment Districts"); and WII REAS, the City Council has initiated proceedings for the levy of the annual assessment for the Assessment Districts; 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 Reports as now submitted for final consideration and approval, and is now desirous of proceeding with the levy of the annual assessments for each Assessment District. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orange as follows: Section I• That the above recitals aze all h-ue and correct. Section II• That all protests and objections of every kind and nature by, and the same hereby aze, overruled and denied. Section III: That the Final Engineer's Reports for each of the Assessment Districts, consisting of the final submitted assessment and diagram for the proceedings, are hereby approved and confirmed and a copy of each Report is hereby filed with the CiTy Clerk. SecHonIV• That the assessments for fiscal yeaz 2020-2021 be established as approved by the Ciry Council, and aze hereby confirmed and levied upon the respecrive subdivisions of land in the Assessment Districts in the amounts as set forth in said final approved Engineer's Reports. Secfion V• That the City Clerk shall immediately accomplish the following for each Assessment District: 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. The 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`d Monday in August. Secfion VI: That the above coufiiined assessments shall be collected at the same time and in the same manner as County property taxes aze collected, and all laws providing for the collection and enforcement of these assessments. ADOPTED this 9th day of June 2020. Mark A. Murphy, Mayor, City ge ATTEST: 1--(/i(Lo, . 'rtdc. . Pamela Coleman, City Clerk, City of Orange Resolution No. 11236 2 STATE OF CALIFOItNIA ) COUNTY OF ORANGE ) CITY OF ORANGE I, PAMELA COLEMAN, City Clerk of the City of Orange, California, do hereby certify that the foregoing Resolution was duly and regulazly adopted by the City Council of the City of Orange at a regulaz meeting thereof held on the 9th day of June 2020,by the following vote: AYES:COIJNCILMEMBERS: Alvazez,Murphy, Monaco NOES:COiJNCILMEMBERS: None ABSENT: COiJNCILMEMBERS: None ABSTAIN: COiJNCILMEMBERS: Nichols 1-L Y nL. -Y YL¢z.v Pamela Coleman, City Clerk, City of Orange ResoWtion No. 11236 3 Engineec's Report Clty of Orange Landscape Maintenance D'utrict No.8fr2 CITY OF ORANGE FINAL ENGINEER'S REPORT FOR TI-', ANNUAL LEVY ASSESSMENl'LANDSCAPE MAINI'ENANC DISTRICI'NO. 86-2 Ftsc,P,[.t zazauza2o pF ORa _ a pavoeqT+jG V~' Cl Q 818.18.'. V G LANDSCAPE MAINTENANCE DISTRICT NO. 86-2 SANTIAGO HILLS Intent Meeting: May 12,2020 Public Heatiag: June 9,2020 u mav za;Ea zozazi 1 Engineer's Repott Crtyof Orange Landsrape Maintenance Dis[ricc No.86-2 AFFIDAVIT FOR THE ENGINEER'S REPORT This Repoit describes the Cityof Orange I.andscape Maintenance Distxict No.86-2 and proposed changes or modifications telated theceto including the improvements,budgets,parcek and assessmena to be levied for Fiscal Year 2020-2021,pursuant to the Cit}s Resoluaon of Intention. Reference is hereby made to the Onnge County Assessor's maps for a detailed description of the lines and dimensions of paxCek within the District. The undersigned respectfullysubmits the enclosed Report as direcced by the City Gouncil. Daudthis 27 dayof>2020. By Franl un Ass' ublic Worl6 D'uecwr/ City Engineer 2 Engineer's Repon Ciryof Orange Iandscape Maintenance D'utria No.862 TABLE OF CONTENTS AFFIDAVIT FOR THE ENGINEER'S REPORT.....................................................2 INTRODUC'I'ION........................................................................................................4 PART I—PI.AIVS A1VD SPECIFICATIONS .............................................................6 ADescripaon of che Discrict...............................................................................................6 B. Improvemenu andServices.............................................................................................b PART II—METHOD OF APPORTIONMENT.....................................................10 AGeneral..............................................................................................................................10 B. Benefit Analysis................................................................................................................10 CAssessment Methodology...............................................................................................12 PART III—DISTRICT BUDGET............................................................................ 14 PART IV—DISTRICT DIAGRAMS......................................................................... 16 PART V—ASSESSMENT ROLI..............................................................................18 3 Engineefs Report Cltyof Orange Landscape Maintenance District No.86-2 INTRODUCTION Pursuant to tfie piovisions of the LnmLrcaping and Ilghtiag Ac[of 1972, being PaR 2 ojDivirion 1 S of the Calijorrera Stneta aad Highu ay.c Code, commencing vitfi Sectiom 22500 (heceafter refemd to as the "1972 Act"), and in compliance with the substanuve and procedural requiremenu of the CaGfornro State Comatrrutian A ticler XIIIC and XIIID (hereafter refernd to as the "Califomia Constitution"), the Caty Council of the Ciry of Orange, County of Orange, State of Califomia (hereafter referred to as Cit'), in connection with the annual levy and collection of assessmenu of the special benefit assessmenc dissricc designaced as: Landscape Maintenance District No. 86-2 hereafter ieferred to as the "District"), which includes all lou and pacrek of land chac specially benefit from the improvemenu within the D'utrict Thit Enginee's Report (hereafter referred w as Report") has been prepazed in conneaion with the annual levy and collections of assessments for said District pucsuant to C1 apur 1,Article 4 of the 1972 Act. The Clty Council pmposes to levyand collecc annual assessmenu on the Countytax rolls to provide ongoing funding for the cosu and expenses required to service and maintain the landscaping improvemenu originally installed in connection wich the development of propeities within the D'utrict The improvements to be provided by the Disuict and the assessments descnbed herein are made pucsuant to the 1972 Act. This Repon descnbes the Districc,the unprovemenu, and the proposed assessmenu to be levied in Fiscal Yeaz 2020.2021 against properties in connection with the special benefits the properties will receive from the maintenance and servicing of the District improvemenu. The annual assessments to be levied on propeaies within the Disaict will provide a funding souree for che continued operation and maintenance of local landscaping improvements installed in connection with the development of properties within the District. The assessmenu descnl ed in this Repon ace based on an estiroate of the direct expendituces, incidental expenses, and fund balances that will be necessaryto maintain and service the improvements. The wo:d"paccel," for the pucposes of this Report, iefecs to an individual prope:ty assigned iu own Assessofs Parcel Number (API by the Ocange County Assessors Office. The Orange Counry Auditor/Controller uses Assesso's Paccel Numbecs and specific Fund Numbeis to identify properties co be assessed on the tax roll for rhe special benefit assessmenu. I'his Repon bas been prepared and pcesented to the Ciry Council to address any proposed changes to che District or unprovemenrs, if any, and the proposed budget and assessmenu for Fiscal Year 2020-2021. The City Council will conduct a noticed public heazing to consider public testimonies, comments and writxen protesu :egarding the levy and collection of assessmenu for Fiscal Year 2020-2021. Upon conclusion of the public hea.+a, if majority protest does not eacist the City Council may approve this Repoct (as submitud or amende and levy rhe assessments Eor Fiscal Year 2020-2021. In such case, the assessmenu for fiscal year 2020-2021 shall be submitted to the Orange County Aud'rtor/Controller for inclusion on the property tax roll for each paccel. If the proposed annual assessmena for this District exceed the maximum assessment described herein (as approved by the property owne:s), the new or inc:eased assessment must be conficmed through another propeny owner protest ballot pmceeding before such an assessmenc may be imposed. This Report consists of five (5) parts: 4 Engineer's Report Gty of Orange Landscape Maintenance Distritt No.86-2 Part I Plans and Specificaaons: A description of the District boundazies and the unprovemen[s associated with the District. The District is being focmed as a single benefit zone encompassing all properties within the territory identified as Landscape and Maintenance District No 86-2. Part II The Method of Apportionment: A discussion of benefiu the improvements and services provide w propecties within the District and the method of calculating each propert}s proportional special benefit and annual azsessment Part III The District BudQet: An estimate of the annual costs to operau, m tintain and service the landscaping and appuctenant facilities insralled and consuucted as part of the development of properties within rhe D'utrict This budget includes an estimate of anticipated diiect maintenance costs and incidenral expenses. The special benefit assessments are based on the overal! opecation costs minus any cosu that are considered general benefic.The proposed assessmenu for Fiscal Year 2020-2021, and each subsequent year shall be based on the estimated net annual cost of operating, maintaining and servicing the improvecnenu for thac fiscal year as well as funds to be collected in installmenu to perform maintenance activities that cannoc be reasonably collected in a single fiscal yea's assessmenu. Part IV District Diagram: A Diagram showing the exterior boundaries of the District is provided in this Repoit and includes all pacrek thac vrill receive special benefiu from the improvements. Reference is hereby made to the Ocange County Assesso's Parcel Maps Eor a detailed description of the lines and dimensions of each lot and pareel of land wi[hin the Disuict. Part V Assessment Roll: A listing of the proposed assessment amounts to be levied on Assesso's Pa el within the District for Fiscal Year 2020-2021. The pmposed assessment amount for euh parcel is based on the pa:rel's propordonal special benefit az oudined in the method of apportionment 5 Enginee's Repon Cityof Ocange Landscape Maintenance District No.86-2 PART I - PLANS AND SPECIFICATIONS A. Description of the District The assessment clistrict boundary is shown on a map entitled Assessment Diagram, Landscape Maincenance D'utrict No. 86-2, Caty of Oruige, which is on file wah the Gry Cderk of the C'icy of Oiange.A duced scale copy of the Diagram can be Eound in Pact IV of this document B. Improvements and Services Improvements and Services Pecmitted Pwsuant to the 1972 Act As gene:ally defined by the I.andscaping and Lighting Act of 1972 and applicable to tivs District,the improvemenu and associated assessmenu may include one or more of the following: 1) The installacion or planting of landscaping; 2) The insrallation or conswcaon of statuary, Eountains, and other ornamental strucnues and facilities; 3) The installation or constn ction of any faciliaes which are appurtenant w any of the foregoing or which are necessary or convenient for the maintenance or secvicing thereof; 4) The installation of park or recreational improvements, including, but not limited to, all of the fouo: a) Iand preparation, such as grading, leveling, cutting and filling, sod, landscaping, imgation systems,sidewalls,and drainage. 6) Lighu,playgcound equipment,playcouits,and public resuooms. 5) The maintenance or servicing, of any of the foregoing including the fumishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement including but not limited w: a) Repair,removal, or replacement of all or any part of any improvemenu; b) Grading, clearing, removal of debris, the installadon or construction of cucbs, gutteca, walls, sidewalks,or paving,or water,icrigation,drainage,or elecuical facilities; c) Pmviding for the liEe, growth, health, and beauty of ]andscaping, including cultivation, imgacion,trimming>spnying,feIriliZlIlg,or treating Eor disease or mjury; The removal of trimmings,rubbish,debris,and other solid waste; e) The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffi[i; fl Elec[ric current or enecgy, gas, or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvemenu; gJ Water for the iYrigation of any landscaping, the operation oE any fountains, or the maintenance of any other improvements. 6) Incidemal expenses associaud wich the impmvemenu including,but not limited to: 6 Enginee's Repon Caty of Orange Iandscape Mainunance Distria No.86-2 a) The cost of preparaaon of the repott, including phns, specificavons,estimates, diagram, and assessmenc; b) Compensation payable to the County for collection of assessmenu; c) Compensadon of anyengineer or attomeyemployed to render secvices; Any other expenses incidental w the construcaon, installation, or maintenance and servicing of the improvemenu; Description of Planned Impcovements The landscape improvemenu are generallydescnbed u follows: a) Parkway and Recreaaon Areas: Newport Boulevacci - approa nately 18-foot wide zone (including che width of the sidevvalk) from the back bf the cu b to the propecry line, and comer cutoffs at inte sections, on the east side from Chapman Avenue to 312 feet south of the centerline of Skylark Place. Chapman Avenue - approximately 18-foot wide zone (including the width of the sidewall from the back of the cu to the propeay line, and comer cutoffs at incecsections, on south side from Nev+pott Boulevard to Jamboree Road. Canyon View Avenue - approximately 30-foot wide zones (including the width of the sidewallc) from the back of the cuib to the property line, and comer cutoffs at inte ections, on both sides from Newport Boulevazd to Jamboree Road. White Oak Ridge - approximauly 17-foot wide zones (including the width of che sidewall from the back of the cu to the propeny line, and comer cutoffs ac inte:sections,on both sides from Newpoa Boulevazd m Canyon View Avenue. Trails End Iane - approximately 17-foot wide zone on the west side and approximauly 28- to 32-foot wide zone on the east side (including the width of the sidewalks), both zones from the back of the curb to the propeny line, and comer cutoffs at intersections, from White Oak Ridge to C7iapman Avenue. Handy Creek Corridor - from the inte:section oE C apman Avenue and Newport Boulevacd to White Oak Ridge and from White Oak Ridge to the inteisection of Canyon View Avenue and Handy Creek Road (Loc 20, a portion of Lot 11, and Lot D of Tzact No. 12417) including concrete walkways which also secve as eme:gencyaccess ways. Paseo - approxixnately 50-foot wide zone fmm che Paric w White Oak Ridge and fmm White Oak Ridge to Old Camp Road (I.ou A and B of Tracc No. 12417) and approximately 35-foot wide zone from the Paseo to White Oak Ridge (I,ot C of Tract No. 1241 including surface and subswface drainage facilities and concrete walkways which also serve as emeigencyaccess ways. Handy C eek Road - appro mately 10-foo[ wide zone (including the widrh of the sidewalks) on south side from the back of the cuci to the property line form the end of Handy Creek Comdor (I.ot D, Tract No. 12417) near Canyon View Avenue to the northerlytecxninus of the street 7 Engineers Repoa Cary of Oiange Landscape Maintenance D'uuitt No. 86-2 Fort Road - appmximately 17-foot wide zones (including the width of the sidewalls) fmm the back of the cu w the property line on south side fmm White Oak Ridge to amboree Road. Santiago Canyon Road - approximately is-foot wide wne (including the width of the sidewallc) fmm back of cuxf to back of sidewalk on north and south sides from Newport Boulevacd to Jamboree Road. Old Camp Road - approximately 4-foot wide zones from back of cucb w property line on both sides from Canyon View Avenue to the no therly tem inus of the street. Skylark Place - approximately 18-foot wide wnes (including the width of the sidewalls) from back of the cucfi to the propecty line on both sides from White Oak Ridge to Newpoct Boulevaixl. Jamboree Road - variable width zone (including the width of the bike uail-sidewall from the back of the curb to the property line on the west side from Canyon View Avenue to Chapman Avenue. Addirional Areas - areas adjacent to the 18-foot wide zones along Skylark Place, Cl apman Avenue, and Jamboree Road have been dedicated to the City with tracts 12672,12741,12711,15398 and PM 92-195. Such areas have been landscaped by the developeis and the sprinkler systems tied inw the District's. b) Medians Chapman Avenue- 14foot wide median from Newport Boulevarcl to Jamboree Road. White Oak Ridge - 14-foot wide medians at Newpoa Boulevazd and Canyon View Avenue. Trails End I.ane- 14-foot wide median from White Oak Ridge to Cl apman Avenue. Jamboree Road - 24fooc wide median from southerly City limiu to Sanciago Canyon Road. Santiago Canyon Road- Vaziable width from Newport Boulevard to Jamboree Road Newpoit Boulevazd - 22-foot wide median fmm CUapman Avenue to Sanriago Canyan Road c) The following items are e ccluded from the Maintenance Districc The 8 +/- acie park u excluded from tivs Landscape Maintenance Disuict. Sidewalls along all Maintenance District streets are excluded fmm this Landscape Maintenance District The equestrian nail along Canyon View Avenue is excluded from tivs Iandscape Maincenance District. 8 En re's Repon Gryof Orange Landscape Maintenance Disuitt No.8b2 Maintenance shall include,buc not be limited to: repair, cemoval, replacement or installauon of all or any pact of any included improvement such as storm drdins and pedesuian walkways in the paseos; pcnviding for the life, growth, health, and beauty of landscaping, inchiding culavation, imgation,trimming,spraying,fectilizing,and treating for disease or injury;and the mmoval of tcimmings,mbbuh,debris,and other solid was[e. The maintenance of the District improvements generally include,but am not limited to all materials, equipmeny utilities, ]abor and incidental espenses including administrative expenses for acuival operation of the District as well as the perfomiance of occasional repaica,replacement and expanded maintenance activities associated with those improvements. Detailed maps and descripdons of the location and extent of the unprovemenu to be maintained by the District are on file at the City and by reference are made part of dus Repoa. The estumted annual cost to provide and maintain the improvements wi[hin the D'utrict skiall be allocated m each propeny in proportion [o the special benefirs ieceived The Method of Appomonment descnbed in this Repoa ualizes commonly accepted acsessment engineering pcactices and has been estabGshed putsuant w the 1972 Act and the provisions of the Califomia Consticution. 9 Enginee's Repon Ciryof Oiange LandscaQe Maintenance District No.86-2 PART II - METHOD OF APPORTIONMENT A. General The 1972 Act pemuts the establishmectt of assessment districts by agencies for the pu:pose of providing cenvn public improvemenu,which include the cons[nicpon, mainrenance, and servicing of public landscaping and appurtenant facilities. 'Ihe 1972 Act fucther requices that the cost of chese impcovemnts be levied accocciing w benefn rarher chan assessed value: 7'he net amount !a be aasetsed rtpan laarG within aa arru.rment dirtrrct may be appartioned by any formula or method wbich fairly distnbxter tbe net amaunt among all asrerrable lot.r or parcelr in proportion ta tbe ertimated ben l.r lo be nceived by eacb rurb!ot or parcelfiam the zmprovememts." The thod of apportionment descnbed in this Report for allocation of special benefa assessmenu utilizes commonly accepted engineeriog practices and have been established piusuant w the 1972 Act and the pcovisions of the Califomia Consatution. 'Ihe focmula used for calculating assessments in tivs Disuict reflect the composmon of the pazcels, and the improve nts and services provided, to fairly apportion the cosrs based on benefn to each pazceL B. Benefit Analysis Each of the proposed improve ms, the associated costs and assess nu have been cazefully eviewed, identified and allocated based on special beneEu pucsuant w the provisions of the Califom a Constirution and 1972 Act. 'Ihe improvements provided by this D'utrict and for wluch properties m7l be assessed l ave been idemified as necessary, requimd and/or desued for the o:derty development of the msidential properties within the Disuict to their full potentiaL As such, the ongoing operation, secvicing and mtintenance of these improvemenu would be the financiaf obligation of those properties. Therefoce, the improvemenu and rhe annual cosu of ensuring the maintenance and operarion of the improvemenu ace a distintt and special benefit w the cesidential propeaites within the D'uuict. Special Benefit The method of apportionment (method of assessment) established herein is based on the p:emise that each assessed pazcel within the District receives special benefits Erom che unprovemerns and the desi:abiliryand security of those properties is enhanced bythe presence of well-c inrained landscaping in close proximirym those properties. The special benefics associated wich the]andscaping and open space improvements aze specifically: EnUanced desirability of propenies thmugh azsociarion w'nh the improvemeim. Improved aestheac appeal of propecties pmviding a positive representauon of the azea and properries. Enhanced adaptation of the u:ban environment within rhe nanual environmem fmm adequate green space and landscaping. Environmental enhancement through improved erosion iesistance,dust and debris control,and fue pmvention. Incieased secise of pride in ownecship of property wirhin the Disuict resulting from well- maintained improvements associaud with the properties. 10 Ea rs xepon Cityof Oru ge Landscape Maintenance Disuicc No.86-2 Enhanced quality of life through well-maintained gxeen space and]andscaped areas. Reduced cciminal acciviry and propert}xrelated crimes (especiaily vandalis against propemes in the District through we]mainrained su:roundings and ameniries including abaument of grafEm. Enhanced envunnn nral quality of the pacrels by moderavng temperatures, providing oaygenation and attenuating noise. The padcways and medians consist of landscaped areas along the edge of or within the middle of streets and highways in the Disuict The District also has ]andscaped wmdors extending tlurough the developed area, which provide access to Sanriago Hills Pazic. The improvements in these areas consist of tmes,sluubs,omamental vegeration,and appurtenant improvements. The improvements eaTend throughout the developmenc a ea and seroe several pucposes. The landscaped pacicways along the s[reea and highways enl ance the public walkwAys throughout the D'uuict and allow pedesuian access to the residents in rhe azea. These padcvcays also provide passive and accive mcreacional uses as well as the aesthetic enhancemen[ for the mtal development acea. I.andscaped median islands also provide similar ecil ancec nts for che residenu in the a ea The ]andscaped recrearion/pedesuian comdois throughoiu the Dist ict provide for open space and iecreacional uses,wlilch connea w the padc site rhroughou[the development area.Besides con[nbuting to the active and gbssive mcceadon use in rhe azea, the comdois aestherically enhance che azea within the Districc Ivfaintenance of these public improvements pcimarily rendeis a people orienud benefit to the propenies within the boundacies of the District and, as such, ielates to rhe number of peisons in each dwelling unit on each pmperty.These benefirs a e dicect and special to the properties wirhin the Districc The preceding special benefvs all conmbute to tkte overall esthetic value and desuability of each of rhe assessed pazcels wirhin the Disuict and the eby provide a special enhancement w these propecties. Fuitheimoce, it has been deucmined that the lack of Eunding to pcoperly service and maintain the iinprovemenu would likely have a dirett negative impact on the propecties wahin the Distcict. GenecalBenefit In ieviewing the Disuict improvementc,the proximiry of those improvements to both propeRies witivn the District and those outside the D'unict as well as the ieasons for installing and consuucting such impmvements, a is evidem chac rhe improvements aze solely the result of developing propemes within the Disuia and the ongoing mainrenance and operadon of these improvemems will dixecdy affect the properties within the Distria. Ahhough the unprovements aze visible to the public az lacge, rhe conswcdon and insrallation of these improvements were necessary for the development of propexcies within the District and ace not requiced nor necessazily desired by any properties or developments outside the District boundary and any public access or use of the improvemens by othe:s u incidentaL Thecefore, it has been determined rhat the improveme s and the ongoing maintenance,servicing and opeiation of hose improvemenu provide no measurable gene:al benefu m properties outside the D'stria or m the public az large,buc clearlyprovide distina and special benefics to propemes within rhe D'stricc I1 Enp.efs Repoa Crcyof Orange Landscape Maintenance Dutrict No.86-2 C. Assessment Methodology The benefrt formula used to determine the assessmnt obligation for each pazcel should be based upon both the improvements that benefa rhe paccels as well as the use of each propeny as compared to other paccels that benefit from those specific improvements. The method of apportionment established for most benefit assessment disuicts utilizes a weighted method of apportionment lmown as an Equivalent Benefit Unit (EBin methodology The Equivalent Benefi[iJnit merhod of apportionn nt uses the single-faznily home site as che basic unit of assessment A single-family msidential propeay equals one Equivalent Benefit Unit("EBU"). Every other land use ss convetted to EBils based on an assessment formula that equates the propeit}s specific development status,type of development Qand use),and size of the property,as compazed w a single-family home sire. The EBU merhod of apportioning benefit is typically seen as the most appropriate and equitable assessment methodology for distcicts focmed under the 1972 Act,as the benefit w each pacCel from the unprovements a:e appoaioned as a funcrion of land uce cype,size and development. EBU Application by Land Use: Single-Family Residential— 'Ihis land use is defined as a fiilly subdivided msidential home site with or without a stiucnue.'Ihis ]and use is assessed 1.0 EBU per lot or pazrel'Ihis is the bace value that the other land use types aze compaced and weighud againsc(ie.Equivalent Benefit Unit or EBi. Multi-Family Residential— T}tis land use is defined as a fully subdivided residential pa el that 6as more than one residential unit developed on the property. This land use is assessed 0.6 EBU per dwellittg unic Mixed Use Propeiry — 'I us land use is defined as property developed for either comme ia( or indusuial use.'Ihis 1and use cype is assessed at 11.0 EBUs per gross acre. Exempt Pazcels — This land use identifies propecties tha[aze not azsessed and ace azsigned 0.0 EBU Ihis ]and use classification may include, but is not limited,to lots or garcels identified as public meets and other roadways (typically not assigned an APN by the Count}; dediraced public easeme ns, open space areas and righo-of-ways including greenbelu and pac cways; udlity right of-ways; common azeas, sliver pactels and bifiu ated lots or any orher propeny that cannot be developed; park properties and other publicly owned properties that are put of the Disuicc improvemenu or that have little or no improvement value. These types of pacceLs are considered to mceive little or no benefit fmm the icnprovements and aze themfore exempted fmm assessment Lou 9, 10, 11, 15, and 19 of Tract No. 12417 have been assigned 0.0 EBU becauce they have been eaccluded from the District The cost of maintaining the landccape improvements on these publicly owned pacrels is not paid bythe Distsia but nther from the general fund of the public agencyownmg the paccel Therefote,these pubHcty owned parcels do not ieceive anyspecial benefit from the Distcicc The following rable provides a listing of land use types, ]and use code designations, the Equivalent Benefa Unit factor applied to that land use type, and the multiplying factor used to calculate each pa el's individual EBU 12 Enginee s Repon Gty of Ocange Landscape Mainunance D'u[ricc No. 86-2 Land Use Codes and Equivalent Benefit Uniu Ptoperry Type Equivalent Benefit Multiplier Uait Single-familyResidential 1.000 UnidLodParcel Multi-familyResidential 0.600 Units/DwellingUnits Mixed Use 11.000 Acreage Exempt 0.000 Parcel The benefit fom ula applied to pareek within the District is based on the preceding Equivalent Benefit Unit (EBin table. Each pacce]'s EBU correlates the parcel's special benefit received as compamd to the other parcels benefivng from the improvements. The following formula is used to calculare each paccePs EBU(propo:rional benefit). Parcel Type EBU x Multipfier(Acres oc Unit) = Patcel's EBU The cotal number of Equivalent Benefit Unics (EBUs) is the sum of all individual EBUs applied to pamels that receive a special benefu from the improvemenG An assessment amount per EBU(Rate) for each improvement is established by talang the total cost of the improvement and dividing that amount bythe total number of EBUs of panels benefiting from the improvement.This Rate is then applied back to each paccePs individual EBU to determine the parcel's propomonace benefit and assessment obligation for that improvement The Maximum allowable assessment rate of $369.44 EBU (single faznil} generates an assessment toral of$533,650J7. Total Balance to L.evy/Total EBU=Aasessment Rate per EBU Assessment Rate per EBU x Parcel's EBU = Parcel's Assessment 13 Engineer's Reporc Cityof O ange Landscape Maintenance D'uuitt No.86-2 PART III - DISTRICT BUDGET The following 6udget outlines the estiuuted cosa to n+n*the unprovemeius for 2020-2021. ANNUAL LEVY OF ASSESSMENT LANDSCAPE MAINTENANCE DISTRICT NO. 56-2 City of Orange ESTIMATED COSTS OPERATION&MAINTENANCE FUND BALANCE FROM PRIOR YEARS Estimated Flind Balance (Includes 15-1 & 86-2) as of March 2020 586,207 The estimated budget necessary for the 2020•2021 Fiscal Year for the District is as follows: BUDGETITEM COST ANNUAL MAINTENANCE Landacaping 391,321 Tree Trimming 165,000 Electrical Maintenance 35,000 Misc. Contract Servicea 10,000 Repair/Maintenance Services 47,051 Suppliea 8,500 Other Professional Servicea 1,000 Telephone 1,000 Electricity 20,000 Water 168,000 Salaries &Benefits 45,119 City Administrative Services 26,424 Capita]ReplacemenU Dedicated Reserves 500,000 TOTAL EST. LANDSCAPE MAINTENANCE EXPENTITURES 1,417,416 EBTIMATED REVENUE Landscape Maintenance Diatrict No. 86-2 533,651 Rancho Santiago Community College Diatrict 25,287 Proposed Benefit Assesament FP 2019/20 (LMD lb-1) See LMD 15-1 Engineer s Report for specifics) 341,358 CPI Adjustment(Current Year 0%) 0 Unused CPI Adjustment(Carry over from prior years) TOTAL ESTIMATED REVENUE 900,296 14 Enginee's Report Gryof Orange Landscape Mauttenance District No.86-2 RESERVE FUNDS USED TO SUPPLEMENT EXPENDITURES 1 617,119) Thie Budget Eetimate ie for the purpoee of eetabliehing an Annuel Aeeeesment. It may vary from the adapted City Budget. All aeeeesmeats collected by the Dietrict may on y be ueed for Dietrict eapeaditures regardlese of the Budget Eetimate. BALANCE TO LEVY 635,661 Notes to Escimate of Costs: 1. Since expenditures in FY21 are anticipaud to exceed revenues,the fund balance will be used to offset additional eapendicuces. In fu ure years,the City will continue w work wah District residenu on developing a renovation plan that u both fiscally and environmentally sustainable. 15 Engineer's Report Gryof Orange Iandccape Maintenance Disuict No.86-2 PART IV - DISTRICT DIAGRAMS The pazcek within the I.andscape Maincenance Disuicc No 86-2 consist of all lots, pazcels and subdivisions of land located in the planned residential development knovm as Santiago Hills. The following diagram incorporaces all parcels within the District, as [he same existed at the wne this Report was prepazed 'Ihe combinanon of this map and the Assessment Roll conrained in this Report consdruu the Assessment Diagram for the Landscape and Maintenance Disuict No. 86-2. 16 Enginee's Report Ciryof Ocange Landscape Maiutenance Dutria No.86-2 st. , f 3 .F 1 '' 1". TctdhYlnmineONee ..2Y.98!apX i _ , / .-" a;. f//< // peeAEjeca l o Sv ti ot\ ' h}.i\ n.\ 4 J'EVJ /,/ /i ' . ,.._ CenyonCol@Bs B<.53 pR i'1`4i Y 'j v; st, c(1.^;'7 , , f . .` 4 ,s \". > :,\ /i . ' r< , _ a. tijj SQy i r ,g r . . s . r' i y,lh 1 t ,p t / ' i s ' ,. ,_ IflYPiE ll L,+, " •' {g0/ .'y'/f:l/ . 4p \ .. PAFK L\'a `% 6 , ./% r,/ i jY(X 4 ,i v,Yp .je ,i : /` r,.._ .. y„V l'i / / ./,COCfkGE - f i4\ l.i—'.' Z [\. . 1 / i i /!% 4c J . Y-l-i'— Y , . I i r .... / 1, i. i - ! / f . / a. 1. (I ;. h T e. T -<af %./ 'I: , i YL`. -r f / i S f (t t.,ir EHA/ i ft.-`y .l }\- S I f11 ! ..5 .. P 4VE%/ /J S / c' t 7 . ' i r i 1`i 15 l !d`- + . l iJf1r. 1 i .R \. r- J WM ` f i r ` { ' 1;. ''1 T":.1 .11-. 1Ej I i' l 1 tll 1..^ f C y/ FJdSX r[ i-'+Iz TT .,y 0 i J I t % r {' . / 1}}"r ' t , . i / : i y ,1- 1; \ _ i}4-y . ' v Z .a r )\l TtS , j\P . i f y7 \l .. 1 ' B ObS/.."Sl`r /YC' ( r"j t ' . Ic ,Y F'4 i l l`, ' y" 1 .{ ?.i .,'.'s ,:i l ' -r*" F . ' S 4 ',4 r ,; n t . .l A J, k r `;y l:.i\. S .t 1 1 , Y .-c' j ` v C`. , -.-.W, s . y,:i Y r i I ,Cy6 , Tr i ^Y ., y:i + I`"' FiTi1t 1i A ,, , 1 ` _ Jl -1 t y, 1 r \' y 1 >. i Ji jCl.' aE-I, 4 ' / r 1t;~ if - ',i i ii r 1 iy ! T` ' i( i . ti\ 1 f,`jt' r 1 'ti f 2 r t ' rr . ",,{ r, P .,4';u a . __--- 1 1 ; i 'r I ] (rti. i•' !!. GM'OHVIEWAVE L •, ) " p. T . - J Qy i °2• n''\r t:l. . .P' PEIEASfJWYON'. i. " ,ti,.;:_ L.r('v:%'' yJ rfc onx I,. V i -: 21111.'+t-' S .P i LMD 86-2 S MTIAGO HILLS I Landscarae LMD Area 1+`+; 1'. MainLsnaneeAreas H psVrctarea MamteincdBy I .j Di4rict FunCs hbt A4arntarnetl m BYDsVi[[ Funds o ' c .,a o mo wt wa m> >xa m•ee;iL__ 17 Engineefs Report Cityof Oiange Landscape Maincenance Dutrict No.86-2 PART V -ASSESSMENT ROLL Pasel identification for each lot or parcel within the Disuict is based on available parcel maps and property dara from the Ocange County Assesso's Office, as they existed at the time this Engineer s Repoa was prepared and the City Council adopted the Resolution of Intention. A listing of the lou and parcels to be assessed within this Disuict along with the assessment amounu is provided herein. If anyparcel submitted for collection is identified bythe County Audimr/Controller to be an invalid pazcel number for the fucal year, a coxxeaed parce] number and/or new parrel numbecs will be identified and resubmitted to the CountyAudiwr/Controller. The assessment amount to be levied and collected for the resubmitted parcel or pucels shall be based on the method of apponionment and assessment race descnbed in this Report as approved by the City CounciL 'Therefore, if a single pa el u subdivided to multiple pa els, the assessment amount applied to each of the new parcels shall be recalculated and applied according to the approved merhod of appoxtionment and assessment rate rather than a proportionate shaze of the original assessment The following is a lisc of the pacrels and proposed assessment amounu for Fiscal Yeaz 2020-2021 for each of the parce]s within the Distria as deurmined by the assessment rates and method of apportionment described herein: 18 Enginee's Report City of Oiange Landscape Mauaenance Disuia No. 15-1 CITY OF ORANGE FINAL ENGINEER'S REPORT FOR Tf IE ANNUAL LEVY ASSESSMENTLANDSCAPE MAINTENANCE DISTRICI'NO. 15-1 r scni.nx zoza2o2i pFO owaortvrF i a Y'qH71L6.19'• 'l O(jj[G LANDSCAPE MAINTENANCE DISTRICT N0. 15-1 SANTIAGO HILLS Intent Meeting: May ]2,2020 Public Heazing: June 9,2020 i.Nro isi F;t Ex zozazi 1 Engineei s Repon Cetyof Oiange Landscape Maintenance Distric[No. 15-1 AFFIDAVIT FOR THE ENGINEER'S REPORT T1ils Repon descn'bes the Ciry of Orange Iaudscape Maintenance District No. 15-1 and proposed ck anges or modifications related thereto including the improvemenu,budgeu,parcels and assessmenu to be levied for Fiscal Year 2020-2021,puisuant to the Cit}s Resolution of Intention. Reference is heceby made w the Ocange CountyAssesso's maps for a detailed description of the lines and dimensions of parcels within the District. The unde:signed respectfullysubmiu the enclosed Report as direcud bythe City Council. Dated this day of /'/R.y ,2020. gy; cu F S Ass nt Public WorkS Direccor/ City Engineer z Enginee's Repoct Gryof Orange Landscape Mairnenance Distritt No. 15-1 TABLE OF CONTENTS AFFIDAVIT FOR THE ENGINEER'S REPORT.....................................................2 INTRODUCTION........................................................................................................4 Ovemew..........................................................._...........................................................................4 District's Facilities.........................................................................................................................4 AssessmentBackground..............................................................................................................4 PLAIVS &SPECIFICATIONS......................................................................................5 FISCAL YEAR 2019-20 ESTIMATE OF COST AND BUDGET................................5 Budget for Fucal Yeaz 2019-20..................................................................................................8 METHOD OF APPORTIONbIENT.........................................................................10 Methodof Apportionment............................._.........................................................................10 D'ucussion of Benefit......................................_.........................................................................10 BenefitFactois............................................................................................................................11 BenefnFinding............................................................................................................................14 Zonesof Benefi[.........................................................................................................................17 Mechodof Assessment...............................................................................................................18 ResidentialPropecries.................................................................................................................19 CommeccialProperties...............................................................................................................20 VacandUndeveloped Propemies..............................................................................................21 OtherProperties.........................................................................................................................21 AnnualCost Indexing................................................................................................................22 APPeals oE tlssessments Levied to Propetry............................:..............................................22 Assessment Funds Must Be Expended VUi hin the Disuict Area..............._.......................22 ASSESSMENT.............................................................................................................?A ASSESSMEIVT DIAGRAM.........................................................................................25 ASSESSMEIVTROId..................................................................................................27 3 En ret's Report Caty of Oiange Landscape Mairaenance D'uccicc No. 15-1 INTRODUCTION Overview The City of Orange (the "Cit}') services and maintains perimeter and median landscaping, interior wallccvays and paseos, and other improvemenu ("Improvemenu") in the Santiago H'ills neighborhoods in the eastem patt of the Caty. 'This Enginee's Repon ("Report") was prepared to establish the budget for the Improvements (as descnbed below) that will be funded by the new 2020.2021 assessments, if approved, and other :evenue, to decetroine the geneial and special benefics mceived Erom the Improvemenu by propertywithin the Impmvement D'utrict ("Disuict"), and to detemvne the method of assessment apportionment to lou and patcels. This Report and the assessmenu k ave been made pucsuant to the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Califomia Streeu and I-Iighways Code (the "Act") and Article XIIID of the Califomia Constitution(the "Article"). Iandscape Maincenance Distric[ (LMD) No. 15-1 wac formed in ZO15. This assessment disuitt is idencical to the existing I.andscape Mainunance District No. 86-2 in its geographic boundazies, paccels to be assessed, Improvemenu to be serviced, maintained, or repaiied and budgeted cost centeis. The assessmenu collected, if approved,will be in addirion to those collecud for Iandscape Maintenance Disttict 86-2. District's Facilities The .Gt}s landscape facilities to be funded by assessmenu within this Disuict are located in the Santiago fLlls neighborhoods of the Ciry. The Improvemenu generally include enuance signs, t:affic islands and medians, pazkways, recreation areaz, paseos, lighting, and the infrasuucture requiced to suppoa these Improvemenu. Assessment Background The Caty formed I.andscape Maintenance Disccict No. 86-2 in 1987 w service and maintain the specific landscape facilities and 'unpmvemenu relevant w this repoa. Revenues from that clistrict temain ce]atively tlat,there is not an inflation adjustment provision,while the cosu to maintttin and se vice these facilities and improvemena have risen steadily. In 2007 the City began to decmase service levek in an effort w contain coscs within available cevenues. The service levels continued to decxease w offset the effecu of rising utilities, labor and macecials costs until the c:ea ion of LMD No. 1S 1. In o:der to :estoie service levels and makc needed repaics and improvemenu w the Discrict's facilities,the LivID No. 15-1 thaz exacdy overlaid[he eaosting assessment district,was Eormed a Enginee s Report C1tyof Orange Landscape Maintenance District No. 1S 1 PLANS & SPECIFICATIONS The Ciry maintains ]andscaping and other improvements in (ocaaons within the pmposed Assessment District's boundaries. The work and improvements proposed to be undertaken by the Landscape Maintenance D'utrict No. 15-1 and the cost thereof paid from the levy of the annual ASsessment provide special benefit to Assessor Parcels within che District as defined in the Method of Assessmenc herein. In addition m the definitions provided by rhe I.andscaping and Lighting Acc of 1972, (the"Act") the work and improvemenu are generallydescnbed as follows: Entrance Sign The enuance signs with landscape improvemenrs w be maintained are to be located at the following locations within the D'utricc: C apman Avenue at Neavport Boulevani(southeasx comerj Newpoa Boulevaid at Canyon View Avenue (northeast comer) Packways and Recceation Areas The landscaped padcways and recreadon areas w be maintained by the Distria aze locaud as follows: Newpon Boulevud-approxicnately 18-foot wide zone (including the width of the sidewaus) fmm rhe back of the curb to the property line, and corner cutoffs at inteisecdons, on the east side from Santiago Canyon Road to 312 feet south of the centerline of Skylazic Place. Cl apman Avenue - approximately 18-foot wide zone (including the width of che sidewalk) from the back of the curb to the property line,and comer cutoffs at inte ections, on both sides from Newport Boulevard m Jamboree Road. Canyon View Avenue - approaomately 30-foot wide wne (including the width of the sidewalk) from the bazk of the cwfi to the propercy line,and corner cutoffs az intersections, on both sides fmm Newport Boulevacd to Jamboree Road. White Oak Ridge - appmximately 17-foot wide zone (including the width of the sidevvalls) from the back of the curb w the propecty line, and comer cutoffs at intecsections, on both sides from Newport Boulevazsl to Canyon View Avenue. Trails End Lane - approximately 17-foot wide zone on the west side and approximately 28- to 32-foot wide wne on the eazt side (including the width of the sidewallc),both zones from the back of the cucb w the pmperty line, and comer cutoffs at intersections, from Whi[e Oak Ridge to C apman Avenue. F3andy Cceek Comdor- fmm the inteisecdon of Chapman Avenue and Newporc Boulevard to White Oak Ridge,and from White Oak Ridge to the inteisection of Canyon View Avenue and Aspen Sueet(I.ot 20,a portion of Lot 11,and Lot D of Tract 1241 including conccece walkvvays wluch aLso serve as emetgency access vrays. Pazeo- approximately 50-foot wide wne from Santiago Hdls Pazk w White Oak Ridge and from Wlute Oak Ridge to Old Camp Road (Lou A and B of uacc No. 1241 and approxima[ely 35-foot wide wne from the Paseo to Whice dak Ridge (Lot C of Trdct No. 1241 including surface and subsurface drainage facilities and concrete walkways which also serve as emeigencyaccess ways. Aspen Street - approximately 10-foot wide wne (including the width of the sidewallc) on south side from the back of the cucU to the propeity line from the end of Handy Caeek 5 Engineers Repon Gtyof Orange Landscape Maintenance Dis[ricc No. 15-1 Comdor (I.ot D, Tract No. 12417) neaz Canyon View Avenue to the northerly cerminus of the street Fort Road- approximate(y 17-foot wide zone (including the width of the sidevva4c) from the back of che cucb to the property line on south side from White Oak Ridge w Jamboree Road. Sanriago G tnyon Road - approximauly 15-foot wide zone (including the widch of the sidewalk) fmm the back of the cucb to the propecty line on nocth and south sides fmm Newpott Botilevard w Jamboree Road. Old Camp Road - appro mately 4foot wide zone from the back of the cucb to the propertyline on both sides from Canyon View Avenue.to northerlyterminus of the street. Skylark Place - approximately 18-foot wide wne (including the width of the sidewallc) from the back of the cucb to the propeay line on both sides from White dak Ridge to Newport Boulevazd. Jaznboree Road- vaziable width wne (including width of the bike trail-sidewall from back of the cu to the propeny line on the west side from Can}ron View Avenue w Santiago Canyon Road. Additional Areas - areas adjacent to the 18-foot wide zones along Skylark P1ace, Gtapman Avenue, and Jamboree Road have been dedicaced to the City with tracu 12672, 12741, 12711, 15398 and PM 92-195. Such aceas have been ]andscaped by the developeis and the sprinkler systems aed to the D'uuict's. Traffic Islaads and Medians The landscaped islands and medians to be maintained by the District are located as follows: C apman Avenue- 14foot wide median from Newport Boulevard to Jamboree Road White Oak Ridge- 14fooc wide medians at Newport Boulevazd and Canyon View Avenue. T:ails End Iane- 14foot wide median from White Oak Ridge to C apman Avenue. Jamboree Road- 24foot wide median from southerly Citylimits to Santiago C'an}ron road Santiago Can}vn Road- Vaziable widch from Newport Boulevazd to Jamboree Road Newport Boulevard - 22-foot wide median from (apman Avenue w Santiago Canyon Road Excluded Impmvemeats The following items are excluded from the D'uuict 1he 8+/- acre park is excluded Erom this District The Gt}s public safety facility on East Fort Road is excluded from this District apman Hills ElementarySchool is exduded from chis D'utrict Santiago Canyon College is excluded from this Disuict (Note that wlu e some public unprovements along the College frontage are maintained along with Disuict Improvements, the College pays direcdy inw the D'utrict's fund[o compensate for that worl Sidewalls along all stceets within the Distxict are excluded The Equestrian aail along Canyon View Avenue is excluded from tivs Dissrict Definitions Installation, maintenance and servicing of Improvements, may include, but are not limited to, nuf and play areas, ]andscaping, gmund cover, sh:ubs and trees, imgation systems, sidewalks, pazlang 6 Enginee's Repoa Crty of Otange Landscape Maincenance D'utric[No. 1S 1 lots, drainage systems, lighdng, fencing, entry monumenu, recreational fac i[ies, security patrok w protect the Improvemenu,graffia removal and repainting,and labor, mateiiaLc, supplies,utilities and equipment,as applicable,at each of the locations owned,operated or maintained by the Disuict. As applied heiein, "Installa ion" means the constcuc[ion of Improvements, including, but not limited to, ]and preparation(such as grading, leveling,cutting and fi ing),sod, landscaping, iaigation systems,walkways and drainage, lights,and recceauonal facilities. Maintenance" means the furnishing of secvires and materials for the ordinary and usual maintenance,opention and servicing of any Improvemenc,including repair, removal or replacement of all oz any pazt of any Improvement; providing for the life, growth, health, and beauty of landccaping, including cuhivation, imgadon,trimming,spraying, fertilizing, or treating for disease or injury; the iemoval of uimmuigs, rubbish, debris, and other solid wacte, and the cleaning, sandblasting,and painting of walls and other Impmvemenu to cemove or cover giaffiti. Servicing" means the £umishing of electric cuaent, or enetgy, gas or other illuminating agent for any public lighting facilities or for the lighting or operddon of any other Improvemenu; or water for the itrigation of any landscaping, the operadon of any fountains, or the mainunance of any ocher Improvemenu. Incidental expenses include all of the following: (a) The cosu of prepuation of the ceport, including plans, specifications, esrimaus, diagram, and Assessment; (b) the cosu of princing, advertising, and the giving of published, posted, and mailed notices; (c) compensadon payable to the County for collection of Assessmenrs; ( compensation of any engineer or attomey employed co render services in proceedings pucsuanx co this pact; (e) any other expenses incidenral w the conswction, installation, or maintenance and servicing of the Improvemenu; ( any expenses incidenral m the issuance of bonds or notes pucsuant to Streets & F ighways Code Secrion 22662.5; and ( costs associated wirh any elections held for the approval of a new or increased assessment (Streeu & I ighways Code §22526). Modifications to the District saucture could include, but are not limited m, substantial changes or eacpansion of the Improvements pruvided,substanaal changes in the service provided,modifications or rescmcturing of the Disaict including annexation or detachment of specific pacrels, revisions in the method of appoaionment, or proposed new or increased assessments. The Assessment proceeds will be exclusively used for Improvemenu wichin the Districc plus incidental expenses. 7 Engineefs Repon Catyof Ocange Landscape Maintenance Discria No. 15-1 FISCAL YEAR 2020-21 ESTIMATE OF COST AND BUDGET Budget for Fiscal Year 2020-21 The following budget shoays the cost of the Improvemenu that would be funded by the District in Fiscal Yeaz 2020-21. This table shows the total combined expenditures associated with the Improvemenu for both Landscape Maintenance Districu (No. 15-1 and No. 86-2). Accoidingly, revenues from both Districts aze aLso shown. OPERATION&MAINTENANCE FUND BALANCE FROM PRIOR YEARS Estimated Fund Balance (Includes 15-1 &86-2) ae of March 2020 586,207 The estimated budget neceseary for the 2020-2021 Fiecal Year for the District ia as follows: BUDGETITEM COST ANNUAL MAINTENANCE Landecaping 391,321 Tree Trimming 165,000 Electrical Maintenance 35,000 Misc. Contract Servicea l0,OD0 Repair/Maintenance Servicea 47,051 Supplies 8,500 Other Profeeaianal Servicea 1,000 Telephone 1,000 Electricity 20,000 Water 168,000 Salariee &Benefits 45,119 City Adminiatrative Services 25,424 Capital ReplacemenU Dedicated Reserves 500,000 TOTAL EST. LANDSCAPE MAINTENANCE EXPENDITURES 1,417,416 ESTIMATED REVENUE Landacape Maintenance District No.86-2 533,651 See LMD 86-2 Engineer s Report for apecifica) Rancho Santiago Community College Diatrict 25,287 Proposed Benefit Aeaesament FY 2019/20 (LMD 15-1) See LMD 15-1 Engineer's Report for specifics) 341,358 CPI Adjuatment(Current Year 0%)°0 Unused CPI Adjuatment(Carry ovex from prior yeare)0 TOTAL ESTIMATED REVENUE 900,296 e Eno inre's Report Gty of Ocange Landscape Maintenance Distria No. 1S1 RESERVE FUNDS USED TO SUPPLEMENT EXPENDITURES 6 517,119) Dietrict Eapeadituree will be at jveted to match the ma mum allowable aesesement. Thie Budget Eetimate is for the purpoee of establiehing an Aanuel Aeeesemeat. It may vary firom the adopted City BudgeG All eseeeements collected by the Dietrict may only be ueed for Dietrict expenditures regardlese of the Budget Eetimate. BALANCE TO LEVY 341,866 Noces to Estimate of Cosu: 1. The Act requires that proceeds from the Assessments must be deposiced into a special fund t6at has been set up for the revenues and e cpenditiues of the DistricG Moreover, funds raised by the Assessment shall be used only for the pucposes stated within this Repon. Any balance remaining at the end of the Fiscal Year,June 30, must be canied over to the next Fiscal Year. The District may also establish a dedicated ceserve fund for con[ingencies and special projecu as well as a dedicated capital improvement fund for accumulating funds for]arger capiral impmvement projects or capital renovation needs. Any mmaining balance would either be placed in the dedicated reserve fund, the capital improvemen[fund,or would be used to reduce future yeazs'Assessmena. 2. The rau shown here is for a single family home or iu equivalent. For the definiaon of the term SFE and rates for other types of property, see the secuon dded, "Method of Assessment Appor[ionment" and the sections following it in this xeport. 3. The total cost of the services and Improvements is the total assessment amount of$341,358 plus the value of the general benefit contnbutions from the City descnbed in the section tided, "Method of Assessmenc Apportionmenc" 4. The Assessment allows for an annual adjuscment ried to che Consumer Price Index(the "Q'I"), as detailed in the seccion ti[led "Method of Apportionment — Annual Cost Indexing." For Fiscal Year 2020-2021, che Q'I is 3.0% for the Los Angeles-I.ong Beach-Anaheim azea as of December 2019. Due to the remaining fund balance frum Fiscal Year 2019-2020, the Community Services Depactment staff recommends setting the Q'I adjustment at 0% for Fiscal Year 2020-2021. 5. Since expendiruies in FY21 ace anticipaud to exceed revenues, che fund balance will be used w offset additional expend'mires. In futum yeazs, the Gty will work with che Dis[ria w evaluate oprions to ensure fiscal susrainability. 9 Engineer's Repon Catyof Orange Iandscape Maintenance Distria No. 1S 1 METHOD OF APPORTIONMENT Method of Apportionment This section of the Engineers Report exp)ains the benefiu to be demed from the Improvements and the methodology used to apportion the total assessment to prope:ties within the D'utrict The method used for appo:tioning the Assessment is based upon the relative special benefits to be derived by the propenies in the District over and above gene:al benefiu conferred on real property or to the public at ]acge. The Assessment is appo:cioned to lou and parrels in proportion to the relative special benefiz from the Improvemenrs. The apponionment of special benefit is a two-step process: the fust step is m idendfy the types of special benefic arising fmm the Improvemenu and the second step is to allocau the Assessmenu to properry based on the estunated relative special benefit for each type of propen}: This section of the Engineer's report includes a discussion of rhe benefits to be provided by the proposed Improvemenu and the method of appomonment of assessments within tlte District 'Ihe formula below identifies the final level of service as the sum of the bueline level of service (without this proposed Assessment) and the enhanced level of service to be funded by the proposed Assessmen Final Level BaseGae Level Enhanced Level of Service of Setvice of Service Discussion of Benefit In summary, the Assessments can only be levied based on the special benefit to propecty: 'Ihis benefit u received by propeny over and above any general benefits. With reference w the cequicements for assessmena,Section 22573 of che Landscaping and L'ghting Act of 1972 staus: The net amount[o be arre.rred xJ on landr udthin an atrersmeat dittritt may be apportioned by uny famrula or method wbith fairly distrsbaler tbe ned amounl omong a!l arrerrable latr orpanelr in pmpor/ion to tbe e.rlimated ben tr to be nceived by earb.rurh!ol osparce/fiam the impmaement.r." Proposition 218, as codified in Atticle :CIIID of the Califomia Constitution, l ac confumed that assessmencs must be based on the special benefit to propeny and that the value of the special benefits must be equal to or exceed the cost of the azsessmenc: No arreument.rba!!be impo.red on any parce!mht'cb exceeds Ibe nwanable rorl of the pmpational.+pecia!benefi[ canferred oa that paml." The following benefit categories summacize the types of special benefit to msidenval, commercial, indtutrial and other lots and paccels resulting from the Improvemenu to be provided with the assessment proceeds. These types of special benefits are sununarized as follows: A Pcvximity to Improved I.andscaped Areas and Other Public Improvemena within the Discrict B. Access to Improved landscaped areas and Other Public Impmvements wichin the Disuict lo En?ee's Repon Cityof Orange Landscape Maitrtenance District No. ISl G Improved Views within the Disuict. D. Extension of a prope t7 s outdoor areas and green spaces for properties within close proximityto the Improvements. E. Caeation of individual lou for residendal and commereial use thac, in absence of the Acsessmenu,would not I ave been created. In this case,the recent Silicnn T/alley ZaxpoyerrA.aocialion,Iar. u Santa Clara County Open SpareAutbodly SVTAJ decision in 2008 pmvides enhanced clacity to the definipons of special benefits w properties from similar improvemenu in three distincc aceas: Proximity Expanded or improved access Views The SVTA decision also clazifies that a special benefit is a service or improvement that provides a direct advanrage to a patCel and that indirect or derivative advantages resulting from rhe oversll public benefics from a service or improvement are general benefiu. The SVTA decision al5o provides specific guidance chat Improvements are a direct advantage and special benefit co property thax u proximate to a facilitythat is 'unproved by an assessment Tbe cbaracteritiation of a ben t may depend oa mhether the pmz el receivet a dz'rect adaantage fiom the impmr emeai (e.g. pmximity to a park) or nceiver an indinct, denvative advantage re.rulling fmm tbe overa!! public ben u of the impmuement(eg.genem!enhancement oj he di.rtricP.r properiy vaGtetJ. Pro dmity, improved access and views, in addirion to the other special benefits listed herein fucttier strengrhen the basis of these Assessments. Moreover, the Dabmr v. Doumtonm Pomana Prop. dr Bur. Improvement Dirt. (DabmaJ decision in 2009 further clarified that certain services and Impmvements funded by acsessments, that are over and above what otherwise would be pmvided and that other propetcy in general and the pubGc do not shaze or ceceive are 100%special benefa.The assessmenafunded services upheld byDahmr included streeucape maintenance and security services. Benefit Factors The special benefiu from the Improvements are funher detailed below: Pcoximity to Improved Landscaped Areas within the District The boundaries of the D'uuict were developed in conjuncrion and concu ent with che planning and design of the subdivisions and Improvements, and thus have been cacefully drawn to only include the propecties in the City of Orange that are proximate to the Improvemenu and that would materially benefic from the Impmvemenu. In other wo:ds,the Distnc[has been narrowly drawn to include the propetties that receive special benefics from the Improvemen[s. Therefoie, property in the Disuitt enjoys unique and valuable proximiry w the Improvemenu that the pubGc az lazge and property outside the Disaict do not share. In the absence of the Assessmenu, the Improvements would not be provided and the public improvemena funded in the Disuict would be degraded due to insufficient funding for maintenance, upkeep and tepair. 'Iherefore, the Assessmena provide Improvemenu that are over and above what othe:wise would be provided. Improvemenu that are over and above what otheicvise would be provided do not by chemselves nanslate into special benefits but when 11 Engineets Repott Cityof Orange Laudscape Maintenance Disuict No. 1S I combined with the unique pro miry and access enjoyed by pazcels in the Disttict, they provide a direct advantage and special beneEit to property in the Disuict. Access to Imptoved Landscaped Aceas within the District Since the paccek in the District are neazly the only paccels that enjoy close access to the Improvements,they diiecdybenefit from rhe unique close access w improved]andscaping areas and other public improvements that are provided by the Assessmenu. This is a dirett advantage and special benefi[to property in the Distria. Improved Views within the Assessment Districts The City, by maintaining peimanent public improvements funded by the Assessmenu in the District, provides improved views to propeities in the District. The propenies in the District enjoy close and unique proxinvry, access and views of the specific Improvemena funded in the Disuict; therefoce, the improved and procected views provided by the Assessmenu axe another direct and tangible advantage that is uniquely confexred upon propeity in the Disvict Extension of a Propetty's Outdoot Aceas and Gteen Spaces for Pcoperties within Close Proximity to the Impmvements In lazge part because it is cost prohibicive to provide lazge open land azeas on propecty in che Distxict,the iesidential, commercial and other benefidng propeities in the Disuict do not 6ave large outdoor areas and green spaces. The Improvements within the Districc pmvide addidonal outdoor areas that serve ac an effective extension of the ]and area for proximate properties because the Improvemena are uniquely proximate and access le to property in close proximity to the Improvements. The Improvements, therefore, provide an icnponant, valuable and desirable extension of usable ]and area for the direct advantage and special benefit of propexties in the District because such propecties have uniquely good and close proximicy so the Improvemenu. Creation of Iadividual Lots foc Residential and Commetcial Use thay in Absence of the Assessmeats,Would Not Have Beea Cceated In most of the Disuict, the original owner/developex(s) of the property witl in the District agreed iinanimOUSIY LO the Assessmenu. The Assessmen s provide the necessary funding for public improvements that were approved as a condicion of development and subdivision approval. Therefom,such Assessmenu allowed the original propertyto be subdivided and for development of the parcels to occur. As pareels were sold, new ownecs wece infomrned of the Assessmenu through the tide reports, and in some cases, through Department of Real Esrate "Whice Paper" repons that the patrek were subject to acsessment. Pu hase of property was also an "agreement" to pay the Assessment. Therefore, in the absence of the Assessmenrs, the lots witlun most of the Disaict would not have been created. These pamels, and the Improvements that were constnacted on the pa els,:eceive direct advantage and special benefit fmm the Assessments. t2 Enginee s Repott Cdty of Orange Landscape Maintenance D'uuitt No. 15•1 Summary of Relative Weight of Benefit Factots A solid azgument could be made that the Creation of Individual I.ou benefit comprises 100% of the benefit because the Improvemenu were incocporated into the original planning and design of the subdivision, and thus were deemed to be necessary and required for the development of the lot Withouc those Improvements and associated benefit, rhe lou would not have been created in the fi t place. Nevertheless,four other definitive benefits accniing to rhe parcels wi[hin the Disuict are identified, and an allowance should be made within the overall relative unportance of benefits. The table below illustrates the relative benefit level of the five identified benefizs used in this Report. Benefit Factor Relative Weight Proximity 10'/ Access 10% Views 10' OutdoorArea orGreen Space Extension 10% Creation of Individual Lots for Development 60' Total Benefit 10095 General Versus Special BeneSt ticticle XIIIC of the Califomia Constirution requires any local agency proposing to increase or impose a benefit assessment to "separate the general benefits from the special benefiu conferred on a parcel." 'Ihe rationale for sepazating special and general benefiu is w ensure that propetty ownecs subject to the benefit assessment are not paying for general benefiu.M assessment can fund special benefics but cannot fund general benefits. Accoidingly, a separace escimate of the special and general benefic is given in this section. In other woids: Total General Speaal Banefit — Benefit + Benefit There is no widel}uaccepted or starutory formula for general benefit. General benefiu are benefits from improvements or services that are not special in nature, are not `particulaz and distinct" and are not "over and above" benefiu received by other properties. SVTA provides some clarification by indicating that general benefus provide "an indirect,derivative advantage" and are not necessarily proximau w the improvemenu. In this Report,the general benefit is h'berallyestimated and descnbed,and then budgeced so that it is funded bysources other than the Assessmen 13 Enginee's Report Ciry of O ange Landscape Maintenance D'uvict No. 15-1 The staiting point for evaluaring general and special benefiu is the cuaent, baseline level of service. The Assessment will fund Improvements "over and above" this general, baseline level and the general benefits estimated in this seccion are over and above rhe baseline. A fonnula w eswnate the general benefit is listed below: BeaeSt to Real Bene6t to Real Pto e Property Inside Benefit General P the Aasessment to the Outside the District that is PublicBenefitsessment District Indicect and at Large Detivative Special benefit, on the other hand, is defined in the state constitution as "a pacticular and distinct benefit over and above general benefits confexmd on real piapecty locaced in the districc or to the public at lazge." 'Ihe SVIA decision indicates that a special benefit is confe:red to a propeny if it ceives a duect advantage from the improvement (e.g., proacimiry to a par3." In these Assessments, as noted, properties in the District have close and unique proacimity, views and access to the Improvemenu and uniquely improved desirability from the Improvemena and other properties and the public at latge do not receive significant benefits because they do not have proximity, access or views of the Improvemenu. Therefoce, the overvvhelming propoition of the benefiu conferied to property is special, and is only minia ally received by propemy outside the Assessment Disuiccc or the public at Luge. Benefit Finding Quaaafication of Genecal Benefit In this sec[ion, the general benefit from landscaping and other types of Improvemenu is libeially escimated and described, and then budgeted so that it is funded by souices other tban the Assessment. Benefit to Pcoperty Outside the Assessment Districts Propercies withui the District receive almost all of the specia] benefits from che Improvements because properties in the Disuict enjoyunique close pro mityand access w the Improvements that aze not enjoyed by other propenies or the public at lazge. However, certain properties within the proximity/access radius of the Improvements, but ouuide of the boundazies of the Discrict, may eceive some benefit from the Improvemenu. Since this benefic is conferred to properties outside the District boundazies, it conuibutes to the overall generel benefit calculation and will not be funded by the Assessmenu. The general benefic to pmpecty ourside of the D'ucrict is calculaced with the paccel and data analysis perfocmed by SQ Consulting Group. Since the pmpemes outside the Distria but with frontage abutting the Improvemenu receive benefit btu cannot be assessed by the Distcict, this is a form of genera( benefit to other property. The primary ways that parcels ouuide he districc benefit bythe Improvemenu is from proaomity, 1a Engineei's Report Gtyof Orwge Landscape Maicnenance Distria No. 15-1 access, views and exteasion of outdoor space, which account for 40% of the available benefit. Therefore, parcels thac abut the landscape areas and am not separated from the Improvemenu by a privacy fence are counted for this geneial benefit The general benefit to pmpe:ty ouaide of rhe District is calculated as follows. Assumptions: 47 paccel outside the District 1517 parcels in the District Calculatioa Genecal Benefit to properry outside the District= 47/(47+7517) *40% = 1.20% Nou: in previous mpocts, the number of parcels in the Disuict was iacorrec[ly stated as "1571" The paYcel count and associated calculations have been adjusted to flett the coxmcc number of pacicels in the Discrict as "1517." Benefit to Ptoperty Inside the Assessmrnt Distticts that ia lndirect and Derivative The "indirecc and derivarive" benefit w property wichin the Discricc is pazdculady difficuh to calculate.A solid acgumein can be presenud tUax all benefit within the Disuict u special,because the Improvemenrs are clearly"over and above" and "pacticuLzr and distinct" when compu ed with che baseline level of service and the unique proximity, access and views of the Improvements enjoyed by benefiting propecries in the Distcict. Neveitheless,the SVTA decision indicaces there may be general benefic"confened on real property located in the district" A measure of the genetal benefics to propertywichin the Assessmenc area is che percenrage of land area wi[hin rhe Disuict chat is publicly owned and used for regional putposes such as major roads, iail lines and other regional facilaies because such properties used for regional pucposes could provide indirect benefiu to the pubGc at lazge. Approwmately 7.15% of the land area in the Disuict is used for such regional pucposes, so this is a measure of the general benefiu to propertywithin the DistricG Benefit To The Public At Lacge The general benefix m the public at lacge can be estimated by the proportionau amount of time that che District's Improvements including ]andscaping are used and enjoyed by individuals who are not residenu, employees, cus ome:s or propecty owners in the District. It should be noud that these Improvements do not attzact the public at lazge in the same way as padc impmvements - and they confer far less benefit to the public ac laige than do similar park improvements. One way to measure he special benefa m che general public is by the car trips through an area with Improvements. Of the five ways benefits are confe ed (pro mity, access, views, extension of a propert7ls green space,and creadon of lou),the only benefit thac is confened byway of pass-by caz trips is views, which accounu for 10% of the wtal benefits. For pass-by caz tnps, the benefit of ts Enginee's Repott City of Orange Landscape Maintenance D'uuict No. 15-1 views is found to be approximauly half that of residenu, employees, customeis or property owne in the District due to the brevity of the views. Therefore the ielative benefit factor is reduced to 5%. Next, the views factois are weighced by the relevant number of car trips. Using the lane miles as representative of pass-by uaffic, an analysis shows that 60% of the lane miles are on arterial or collector streeu whem the genera( public has views of the landscaping. Therefore (60% of 5% _) 3.0% of the benefits from the Improvemenu are general benefits to the pubGc at lacge. Special Considerations of Impmvements Outside of Dietrict The benefits are categorized into to two geognphic groupings of Improvemenu: In-District Improvements that include pazkways, medians and paseos that are eicher inside the disuict boundaries, or are trafEic medians that directly abut or front the distcicq and Out-of-Distdct Impmvements that are parkxays or meclians that are both ouuide the Disuia boundazies and are not abutting, fronring or lying adjacent co the Distcict. Based on weighted square footage of the vazious types of Improveme s, Ouaof-Disaict Improvements count for approximately 11.6% of the total benefits. These Ouo-of-Disaict benefirs are found w be entirely General Benefit For example some Improvements at Santiago Canyon College are maintained, but the funding for this work comes enticelyfrom the College as general benefit funds. The In-Disuict Improvemenu, convecsely,provide approximately 88.4°/a of the total beneEits. The general benefia provided by these Improvemenu aie discussed above. Total General Benefits Using a sum of these three measures of general benefit plus che special consideraaons of general benefic from Ouo-of-District benefiu (bot6 weighted accocdingl},we find that approximately 21.6% of rhe benefits confe:xed by the Improvemenu may be general in natuce and should be funded by sou es other than the Assessment. This cafculation is shown below. Relative Percent of Generel Overell General Benefit Benefit Bene£t In-DistrictGeneral Bene ts Outside the District 1.20% Property within the District 7.15% Publicat Wrge 3.0040 Totalln-District 1135% 11.4% x 88•4% = 10.096 Out-of-Distrid General Benefits 1W.0' x 11.6% - 11.6% TOTALGENERALBENEFIT 21.6% Although this analysis finds that 21.6% of the Assessment may provide general benefics from the Improvements, the Assessment Engineer establishes a requirement for a minimum conuibudon from sources other than the Assessmenu of 22%. T minimum contnbution above the measure of general benefiu will serve to providc additional coverage for any other general benefiu. 16 Enginee's Repon Cityof Orange Landscape Maintenance Distria No. 15-1 Final Step — Calculate the Cuaent General Benefit Contribuaon fram the Ciry This general benefit cannot be funded from the Assessments;it must be funded from other sounes such as the City s Geneial Fund or other non-Distritt funds. These contnbutions can also be in the form of in-lieu conuibutions to the installation and maintenance of the Improvemenu such as other Cary assets that support and protea the Improvemenu. The Cicy of Orange will contribuce both monetacy and in-lieu msoucces to ensuce xhac the general benefiu confecred by the proposed Improvemenu are not funded by the Disaict's property ownecs. A sununary and quantification of these other conuibutions from the City is discussed below: The City of Orange owns, maintains, rehabilirates and ceplaces curb and gutter along the border of the District Improvemenu. This cucb and gut[er secves to suppoct, contain, retain, manage i igation flow and growth, and provide a boundary for the Impmvemenu. The contribution from the Ciry towacds general benefic from the maintenance, rehabilitarion, and ieplacement of the cu and gutter is conservatively esrimated to be 5%. The City owns and maintains a storm draioage system along the boider of the District Impmvemenu. This system serves to prevent Elooding and associated damage to the Improvemenu,and manage urban mnoff including local pollwants loading from the Improvemenu. Ihe contnbution from the City towacds general benefit from the maintenance, and operation of the local storm dc•ainage system is conservacively estimated m be 5%. The City ovms and maintains local ublic streets along the bo der of the District Improvemenu. These pubGc screets provide access to the Impmvements for residents' enjoyment as well as efficient maintenance. T'he conmbution from the Gtytowards general benefit from the maintenance of local public streeu is conservauvely estimaced to be 5%. The value of the construction of the Improvemetrcs can be quantified and monetized as an annuity. Since this constcuction was peifocmed and paid for by non-assessment funds,this "annuit}' can be used to offset general benefit costs,and is conservativelyestunated to contnbute 10%. Ihe wtal General Benefit is hberally quantified at 22% which is entirely offset by rhe conservacively quantified total non-Assessment concnbution wwards general benefn described above of 25°k. Therefore,no additional Geneial Benefit must be funded by che Cacy. Zones of Benefit The boundaries oE the Distria were developed in conjunction and concurrent with the planning and design of the subdivisions and Improvemenu, and thus include only the properties in the City of Orange that aze proximate w the Improvements and that would materially benefic from the Improvements. Cectain other propecties surrounding the District were not part of the designed associadon between the Improvemenu and the assessed azeas, and are generally less proximate to the Impmvements. In other woids, the boundazies of the District have been narrowly d:awn to include only propenies that will specially benefit from the Improvements, and would receive a declining level of service if the Assessments were not appmved. The SVTA decision indicaces: Im a mell-dmwn di.rtnct— limited to nnly pmxzG re eiving,pecia!ben u jrom tbe impmvement— every pa ce! mitbin that dirtnct rzceiver a .rhand .pecial benefzt. Under aection 2, aubdivlrion ), there ben lr can be mnrtrned ar beinggenem!ben tr rinre they a e aat "partlrular aad dirtiacP'and an aot 'bver aad above"tbe ben lt nceived by ol6erpmperlie.c `7acated ix tbe dr.rtnct." 17 Enginee's Report Gcy of Otange Landscape Maincenance Distria No. IS 1 We do not belieUe [hal tbe aoterr intended ta iavalidate aa arrerrment di rtnct that ir aarmmly drawn to iaclHde only propediea dinttly ben ting jrom an imp ovemevl. Imdeed, lhe balkt materiaLr nfJect othenvise. Thur, if an asrer.rmevt di.rtrict ia nam wly draum, the jact that a ben t is confemd tbroughaut 16e dirtnct doer not make ii general mtber than .pecia In that circrrm.rtance, lhe chamctenlatioa of a bea t may depend on vbether the paree!receiver a dlmct advaatage from tbe improvement(e.g.,p nximity to park) or eceiver an indirecl, derivative advantage mrulting fiom the overall public ben tr of the impmvement (e.g.,genera!enhancement of tbe dimict'.r properzy valuea). In the Discrict, the advantage that each pazcel ceceives from the Improvemenu is direct, and the boundaries are nazrowly drawn w include only paicels that benefit from the Assessment.Therefore, the even spread of Assessment chroughout the nazrowly drawn distria is indeed consistent with che SVlll decision. For the most part, the benefits from[he Impmvements witivn the Disaict do not vary further based on proximity of the parcels to the Improvemenu because the increased benefiu of greater proximity w the Improvements are generally offset by a parallel increase in negadve facwcs such as higher levek of uaffic,noue,eu.that comes with increased proximiry. There are two distinct neighborhoods within the D'utsict: Santiago Hills and I-iillsdale. Santiago I'ills is a complex neighborhood with atterial and collector sueers travex ing the residential areas and a commereial area on the northeast poition. In addition,Santiago ILlls has a system of walldng paths, or paseos, that provide additional benefiu not found in the I'illsdale neighboifiood I'i1L5dale is a relativelysmall neighborhood, linear in shape centered on one msidential s[reec (I llsdale Drive) with Improvementc along only one exterior frontage (Santiago Canyon Roa. In onier to most conservatively assu:e that Assessmenu are proportional to the :elative leve] of special benefiu in the Discrict, toro zones have been created Zone of Benefit A (or "Zone t1) consists of all of the pazrels that lie within the Santiago H'ills neighborhood bounded generally by Q apman Avenue, Jamboree Road, Canyon View Avenue, Sky3ark Iane and Newport Boulevacd. Zone A:eceives the full complement of special benefiu. Zone of Benefi[B ("Zone B") consists of all the pazcek that lie within the Lllsdale neighborhood lying generally north of Santiago Canyon Road. A detailed analysis of the proportionate benefits eceived by the I'illsdale neighborhood as compared m the Santiago I'ills neighborhood based on the weighted aceas of parkways, paseos, and tcaffic medians within or proximate m the two zones shows that the H'illsdale neighborhood (Zone B) receives appro omately 75% as much special benefit as the Santiago neighborhood (Zone .. Thecefoce Assessmenu for parcek in Zone B aze reduced appm mately 20%from the rates for Zone A(see Assessment Diagram). Method of Assessment As pieviously discussed,the proposed Assessmenu will provide comprehensive Improvements that will clearly confer special beneFiu m propexries in the Disuict. The allocation of special benefits to property is partially based on the type of propeicy and the size of property. These benefia can also partially be measured by the occupanu on pmperty in the Discrict because such pacCel population density is a measure of the relative benefit a pa el receives from the Improvements. It should be noted that many other types of "naditiona(° assessmenu aLso use pazrel populauon densities m appomion the Assessments. For example, the assessmenu for sewer systems, roads and water systems are typicalty allocated based on the population density of the parcels assessed Therefore, the apportionment of benefit is ceasonably based on the type of parcel, the size of parcels and the population density of parcek. 1s Engineer's ReQon Clryof Orange Landscape Maintenance D'utiict No. 15-1 The next step in apportioning Assessmenu is to detem ine the relative special benefit for each propecty.Tlus process involves detem ining the relative benefit received by each propexty in relation co a single family home, or, in other words, on the basu of Single Family Equivalenu (SFE). This SFE methodology is commonly used to dismbute Assessments m proportion to estimaud specia( benefit and is generally recognized as providiog the basis for a fair and appropriate disuibution of Assessmenu. For the pwposes of this Engineefs Report, all propecties aze des gnated a SFE value, wkuch is each propect}s relative benefit in relation to a single family home on one parceL In this case, the "benchmazic" property is the single family detached dwelling which is one Single Family Equivalent or one SFE. Not ocily residential improved property will be assessed, because commetcial and other propeities may also receive dinect benefits from the Improvemenu,and will be assessed A fixed or flat Assessmem is proposed for all single family residential propeities regudless of occupancy or parcel size. Assessmenu on multi-family residential pucels vary bazed on the number of dwelling units. Assessmenu on commeicial propeity aze levied on an acreage basis because Luger pmperties generally support]azger buildings and have higher numbecs of employees, custome:s and guesu who would benefit fmm proximity and improved access to well-mainrained and improved andscaping. Finally, the special benefits to be derived from the proposed Assessments will be confe d on property and are not based on a specific property ownefs use of the improvemenu, a specific property ownefs occupancy of propeity,or the propeity owne's demogcaphic scatus such ac age or number of dependenu. The benefiu conferred to property are relaud to the averagc number of people who could potentially live on, work ac, or othervnse could occupy a property, not how the propeity u cucmndy used by the pcesent owner. Therefoce, the number of people who could or potentially live on, work at or otherwise occupy a pmpeity is one indicator of the mlative level of benefit received by a property. In conclusion, the Assessment Engineer detennined that the appropriate method of assessment apportionment should be based on the type of property, the relative size of the property, property location, its relative population and its proximityto Improvemencs.'I7vs method is fiuther descnlxd below. Residential Properties Cettain residential properties in the Dist:ict tha[ contain a single residential dwelling unit are assigned one Single Family Equivalent or 1.0 SFE. Detached or attached houses and zero-lot line houses ace included in this category of single family iesidential property. If theie is more than one single family detached dwelling on a pazcel, it will be chazged one SFE per single family detached dwelling. Propetties with mom than one residential unit (other t6an pacrek with more than one detached single Eamily dwelling as descnbed above) are designated as muhi family residencial properties.These properties benefit from the Improvements in proportion to the number of dwelling units that occupy each propeity, the average ntunber oE people who reside in muki-family residecmal uniu vecsus the average number of people who reside in a single family home (Popularion Densicy Factor) and the relative size of each type of residential dwelling unit (Sqwue Foot Facwr). The populadon density facto s for the area in Ocange County encompassmg the District, as depicted in the following table, provide the basis for dete:mining the SFE Eactois for residential prope:ties. Using the toral population in a cectain property type in the area of the Disttict from the 2010 Census and 19 Engineer's Repoa Catyof Orange Lwdscape Maintenance D'u[ria No. 15-1 dividing it by the total number of such households, finds that approxicnauly 3.21 pecsons occupy each single family residence, whereas an average of 2.93 peisons occupy each condominium. The ratio of 321 people on average for a single family residence and 2.93 people per dwelling unit in a condominium unit resulzs in a population density equivalent of 0.91 for condominiums. Next, rhe relative building azeas are factored into the analysis because special benefics are related to the average size of a propeity, in addition to average popularion densiaes. For a condominium, this calculation results in an SFE faccor of 0.71 per dwelling unit. Table 1—Residential Density and Assessment Factocs Pop.Density SqFt SFE Type of Residential Property Equivalen! Factor Factor Single FamilyResidential 1.00 9.00 1.00 Condominium 0.91 0.78 0.71 Thece are no other muhi-fauvly propecty types (e.g., duplex, uiplex, foutplex, apartments) in the Disvict,and none aze foreseen in the future. Therefore no SFE-based assessment cate is calculated. Commercial Properties SFE values for comme:rial land uses aze based on the equivalence of special benefit on a land area basis between single family residenval prope ty and the average comme ial pmperty. The SFE values for vazious commeicial ]and tues aze funher defined by using average employee densities because the special benefit factois described previously can be meas ued by the avecage number of people who woiic at commeicial properties. In oider to detecmine employee density factois, the findings fmm the San Diego Associaaon of Governments Traffic Generawis Study (the "SANDAG Srud}') ace used because these findings were appmved by rhe Srate Legislature as being a good icpresentation of rhe average number of employees per acre of land area for commeicial properties. As deurmined by the SANDAG Study, the average number of employees per acie for general comme ial property is 24. In comparison, the average number of people residing in a single family home in the azea is 321. Since the average lot size for a single family home in the District is approximacely 0.12 acres, the average number of residents per acre of residendal property is 26.8. The employee density per acre is roughly equal to (or 0.9 times) the population density of single family:esidential property per acre (24 employees per acre / 26.8 residents per acie). However,the benefix derived by employees on commercial properties is less than that derived by a resident on cesidential pmperty, generally due to less vme of use of services and Improvemenu. The Assessment Engineer determines that this facwr is 0.5 for comme ial to 1 for cesidenriaL Table 3 below shows the average employees per acre of land azea or portion theceof for vazious types of commeczial propeaies and lisu the relative SFE factors per 0.12 acm for propeities in each]and use category. zo Engineefs Repoct Ciryof Ocange Landscape Maincenance Distcic:t No. 15•1 CommerCia] propenies in excess of 5 acres genexally involve uses that are mo e land intensive relacive m building areas and number of employees (lower coverage catios). As a resuh, the benefi[ faccois for commereial property]and area in excess of 5 acres is detecmined co be the SFE rate per 0.12 acm for the fust 5 acies and the relevant SFE rau per each additional acre over 5 acres. Table 2—Commercial Density aud Assessment Factors Average SFE Units Type of Commercial Land Use Employees per perAcre 0.12 Aere 2 General Commercial 24 o.soo p ICe3 68 1.420 Shopping Center 24 o.soo 1.So uice: San Diego Association of Govemmencs Traffic Generato:s Study. 2. The SFE factors for commeicial and industrial parcels are appGed bythe 0.12 acre of land area or portion thereof. ('iherefore,the minimum assessment for any assessable pa el in these categories is the SFE Uniu lisced herein.) The rates apply up m fiisc 5 acres of pac el size. Additional acreage is benefited at the rate shown above per acre or portion theieof. 3. Guiendy there are no parcels in the Districc in the Office category. '11us rate is included in che event General CommexCial space is converted w Office space. Vacant/Undeveloped Properties The benefit to undeveloped properties is detemiined to be propomonal w the conesponding benefits for similar type developed propetties, but at a lower rate due to the lack of improvements on the property: A measure of che benefics accruing to the underlying land is the average value of land in relazion to Improvements for developed pmperry.An analysis of the assessed valuation data from the County of Orange found tt at approximately 55% of the assessed value of improved propexties u classified as the land value. It s reasonable to assume, therefore, that approxunately 55% of the benefiu axe related to the undedying]and and 45% are related to the improvements and che day-to-day use of the propect}: Using this ratio, the SFE factor for vacarn/undeveloped pacrels is 0.55 per pacceL Other Properties tliticle XIIID stipulaces that publicly owned properties must be assessed unless the:e is cleaz and convincing evidence that those properties receive no special benefit from the Assessment All properties that are specially benefited aze azsessed Cectain other publiclyowned propertythat lie wichin the Disuicc boundaries, including Sanvago Canyon College, C apman E ills Elementary School, Santiago H lls Pazk, and ty of Orange public safery facility on East Fort Road, are not acsessed. These are discussed below. Santiago Canyon College: The College lies witliln the District and cenain Improvements lie on their property. Alchough the College is noc azsessed in this District, the College pays for any special 21 Enginee's Report Ciry of Oiange Landscape Maincenance Duuic[No. 15-1 benefit through a separau agreement with the City, and t6at monetazy conuibution u shown in Table 1. In addidon, all benefit attributable for the College prope:ty is included in the General Benefit calculation shown above. Cliapman Hdls Elementar SchooL• Any special benefit attnbutable to the School buildings and parlflng lou are entuely offset by the benefic provided so the neighborhood by che outdoor fields. This facility was also included in the list of regional faciliries in che calculation of general benefic to propeities inside the discrict that is indirect and derivative above. Santiago H Is Park: Any special benefit atuibutable w the Park is entirely offset by [he benefic provided w the neighborhoods by park facilities. Tlvs faciliry was also included in the Gst of regional facilities in the calculation of general benefit w properties inside the district that is indirea and derivative above. Ciry of Orange 1'ublic Safety Faciliry on East Fott Road: Any special benefit received by chis facility is enticely offset by the benefit provided back to the neighborhood sunilar to other in-lieu contnbuvons w the General Benefit contnbutions that are funded by the Cit}s General Fund or ocher non-District funds. NLscellaneous, small and other paccek such as roads, righaof-way paccels, and common aceas typically do nox generate significant munbecs of employees, residenu, custo:s or guesu, and have limited economic value. These miscellaneous pasels ceceive micvmal, if any, benefit from the Improvemenu and ace assessed an SFE benefit factor of uro SFEs. Annual Cost Indexing The Assessment is subject m an annual adjustment tied to the Consumer Price Index-U for the I.os Angeles-Long Beach-Anaheim area as of December of each succeeding year (the "Q'I"), with a ma cimum annual adjustment not to exceed 3%. Any change in the Q'I in excess of 3% shall be cumulauvely ceserved as the "Unused Q'I" and shall be used to increase the maximum authoriud assessment rate in yeazs in which the Q'I is less than 3%. The u lximum authorized assesscnent rate is equal to the maximum assessment race in the fust fiscal yeaz the Assessment was levied adjusted acmually by the minimum of either 3% or the change in the Q'I pluc any Unused Q'I as described above. Appeals of Assessments Levied to Property Any propetty owner who feels tl at the Assessment levied on che subject prope ty is in ecror as a cesult of incoccect inforcnation being used w apply the foregoing method of assessment may file a written appeal with the City of Orange City Manager or his or her designee. Any such appeal is limiced to correction of an Assessment during the then-cucrent Fiscal Year and applicable ]aw. Upon the filing of any such appeal,the C1ty Manager or his or her designee will promptly review the appeal and any infocmation pmvided by the propecty owner. If the C'ity Manager or his or her designee finds that the Assessment should be modified, the appmpriare changes shall be made to the Assessment Roll.If any such changes are approved after the Assessment Roll has been filed with the County for collecrion, the City Manager or his or her designee is authoxized to refund to the property owner the amount of any approved reduction. Any dispute over the decuion of che City Manager or his or her designee shall be refecred to the Orange Cicy Council,and the decision of[he City Gouncil shall be final. Assessment Funds Must Be Expended Witlun the District Area 2z Engineet's Report Gtyof Oiange Landscape Maintenance Disuic[No. 15-1 The net available Assessmenc funds, after incidenral, adminis[rative, financing and other cosu shall be expended exclusively for Improvemenu within che boundaries of tkte District or as descnbed herein, and appropriate incidental and administrative cosu as defined in the Plans and Spec cations section. 23 Engineer's Repoct Cecy of Orange Landscape Maintenance Disuict No. 1S 1 ASSESSMENT The amount to be paid for said Improvemenu and the expense incidental thereto,to be paid by the District for the Fiscal Year 2019-20 is gene:ally as follows: Table 3—Summary Cost Estimate Fot Landscape Maintenance District No. 15 -1 Fot Fiscal Yeat 2020.21 BUDGETITEM COST ANNUAL MAINTENANCE Operating Erzpenses 846,872 Salariea&Benefits 45,119 Adminietration and Project Management 25,424 Capital Expenses/Revenues 600,000 Total for Services 1,417,415 Less Other Revenue 658,938) Reeerve Funds 517,119) Net Amount of Aeaesament 341,358 As required by the Acc, an Assessment Diagram showing the exterior boundaries of the Improvement Disuict is hereto attached and incoiporated herein by reference. The distincrive nwnber of each pazcel or 1ot of ]and in the D'utria is its Assessor Pareel Number appearina on the Assessment Roll. 24 Enginee's Report Gryof Orange Landscape Maincenance Disuia No. 15-1 ASSESSMENT DIAGRAM The paccels proposed w be usessed in Iandscape Maintenance District No. 15-1 are shown on che Assessment Diagram, which is on file with the City C1erk of the City of Orange, and includes all those properties included in the original fonnation of I1vID No. 86-2. The following Assessment Diagram u for general location only and is not to be considered the official boundary map. The lines and dimensions of each lot or pancel witlun the Disuia are those lines and dimensions as shown on the maps of the Assessor of the County of Orange, for Fiscal Year 202421, and are incoiporaud herein by refe:ence,and made a pait of this Diagram and dus Repoa. 25 Engineer's Report Cayof Orange Iandscape Maintenance Distria No. IS i one B i:''' i I I Ii E'"l..Yn^ II II I 1 I s'' 9s Q City oT Orenge LMD No. 15-1 Bountlary Zone A Parcels 1 0 Zone B Parcels i Ctty LimR j r . CITY OF ORANGE LANDSCAPING MAINTENANCE DISTRICT No. 15-1 ASSESSMENT DIAGRAM PREPARED BY SCI CONSULTING GROUP 4745 MANGELS BLVD FAIRFIELD CA 94534 1707 30-4300 26 Enginee s Repon Gry of Orange Landscape Maintenance Du[ric[No. 15-1 ASSESSMENT ROLL An Assessmem Roll (a listing of all pucels assessed within the Assessment District and the atnount of the Assessmenc) will be filed with the City C1eck and is, by reference, made pazt of this Repoa and is available for public inspecaon during normal office hows ax the City Hall at 300 East C apman Avenue, Ocange, Califomia 92866. Each lot or pucel listed on the Assessment Roll is shown and illustcaud on the latest County Assessor records and these cecords are, by reference made part of this Report. These records shall govem for all details conceming the descripdon of che lou or parcels. 27