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AGENDA ITEM
May 13, 2014
TO: Honorable Mayor and
Members of the City Council
THRU: John W. Sibley
City Manager
FROM: Joe DeFrancesco Vc
Public Works
Marie Kl
Community
ReviewedNerified B
City Manage
Finance Dir ctor!
To Be Presented By:
a DeFrancesco
X Cons Calendar
City Mgr Rpts
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Legal Affairs
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Admin Reports
Plan /Environ
1. SUBJECT 777
Resolution No. 10783 - A Resolution of the City Council of the City of Orange regarding
Landscape Maintenance Assessment District 94 -1 (Sycamore Crossing) declaring its intention to
provide for an annual levy and collection of assessments for Fiscal Year 2014 -2015; and to set a
time and place for a Public Hearing to receive public testimony on the foregoing matters; and to
give preliminary approval to the Certified Engineer's Report for Landscape Maintenance
Assessment District 94 -1 (Sycamore Crossing).
1 2. SUMMARY 77�1
Each year in June the process of setting the assessment for the Landscape Maintenance Districts
is started. This is the first step in the process. The City declares its intention to assess an annual
levy, approve the Preliminary Engineers Report and set a public hearing in accordance with the
Lighting and Landscape Maintenance Act of 1972. Staff recommends that there be no increase in
the assessments fiscal year 2014/2015 and that they remain at $293.08 per year which is the
maximum assessment allowed. The total assessment to be levied in Landscape Maintenance
District 94 -1 (Sycamore Crossing) will be $47,877.
3. RECOMMENDED ACTION
Adopt Resolution No. 10783 declaring the City's intent to provide for an annual levy and
collection of assessments for fiscal year 2014 -2015, to set June 10, 2014 as the date for a Public
Hearing, and give approval to the Preliminary Engineer's Report.
4. FISCAL IMPACT
The District pays all costs of District administration and related activities. The City will pay
$117.23 and $58.62 annually for two City owned lots within the District. The assessment
revenue for Fiscal Year 2014/2015 will be placed in Fund Number 293.
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1 5. STRATEGIC PLAN GOAL(S)
3a. Enhance and promote quality of life in the community - Refurbish, maintain, develop and /or
expand public use places and spaces.
16. GENERAL PLAN IMPLEMENTATION
Land Use Element Goal 6.0 Advance development activity that is mutually beneficial to both the
environment and the community.
Policy 6.3: Establish and maintain greenways, and pedestrian and bicycle connections that complement
the residential, commercial and open space areas they connect.
Policy 6.8 - Maximize landscaping along streetscapes and within development projects to enhance public
health and environmental benefits.
17. DISCUSSION and BACKGROUND
In 1995, Landscape Maintenance District No. 94 -1 was established to maintain the landscape and
flood control improvements along Santiago Creek that were constructed by Tract No. 14752
(Sycamore Crossing). Resolution 8462 approved Condition Use permit 2088 -94 for Tentative
Tract 15053 (Sycamore Crossing) and Resolution 8463 approved Tentative Tract Map 15053,
which is a part of Tract 14751. Both resolutions contain the following condition:
"To the satisfaction of the City of Orange's Public Works Department and City
Engineer, prior to the recordation of Final Tract Map 15053, the City shall form a
landscape maintenance district which shall include the project for the purpose of levying
and collecting an assessment to maintain the open space dedicated to the City by
Tentative Tract 14752 and defining in Exhibit E -1 of the development agreement for this
project. Said assessment shall not exceed the sum of $28.00 per month per residential
unit in the project but may increase annually in accordance with the applicable increase
maintenance cost index as provided in the Engineering News Record or such other
comparable index as the parties shall agree. The future homeowner's contributions
(financial payments) towards the maintenance of Santiago Creek open space shall be
included in the disclosure requirement to future buyers."
Annually, a detailed accounting of expenses is done and a new assessment is calculated for the
benefiting property owners. All assessments are recommended to remain the same for fiscal year
2014/2015 as they are for the current fiscal year. The 124 units in the interior of the Tract are
currently assessed at $293.08 which is the maximum allowable assessment by Proposition 218.
The 36 units adjacent to the landscape improvement are currently assessed at $298.94 per unit.
The senior citizens housing site is currently assessed at $597.88 per year. Because of
Proposition 218 the two lots within the District boundary owned by the City of Orange are no
longer exempt. The larger lot for recreation purposes is assessed at $117.23 per year and the
smaller lot for future water well is $58.62 per year.
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The total expenditure for fiscal year 2014 -15 is estimated to be $55,000.00. The proposed
assessment will generate $47,877 in revenue. The projected year -end Reserve Fund balance is
$54,187and the District is funded entirely by annual assessment revenue. The fund balance will
be used for repairs and replacement of infrastructure such as fences and landscape. Staff has been
reducing expenditures during the last three fiscal years to maintain District expenditures within
revenues, however maintenance and utility costs (primarily water) continue to rise, resulting in
the need to maintain reduced service and utility costs. Cost reducing measures that have been
employed include reducing landscape areas, the frequency of landscape service, staff oversight
and deactivation of the trail lighting system.
During this current fiscal year, a portion of the Landscape Coordinator salary for the oversight of
the District, approximately $3,500 has not been charged to the District. The Landscape
Coordinator has been absent due to a long -term illness and other staff has been providing limited
oversight of the District and its contract services. The salary savings to the District has reduced
the impact of the rising maintenance costs of the District but also resulted in very limited
oversight and management of the District maintenance. The temporary elimination of salary
costs to the District however, cannot be a factor in budgeting for future years, as staff oversight
will need to be addressed in the long term.
The estimated district expenditure for the current fiscal year is approximately $55,000. The fund
balance can support the deficit from revenue for 2 to 3 years.
8. ATTACHMENTS
• Resolution No. 10783
• Preliminary Engineer's Report
• Map
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N:\ADMIN\LYoung \Council Items\ LMD 94 -1 AGENDA intent FY14- 15a.docx
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RESOLUTION NO. 10783
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ORANGE REGARDING LANDSCAPE MAINTENANCE
ASSESSMENT DISTRICT 94 -1 (SYCAMORE CROSSING)
DECLARING ITS INTENTION TO PROVIDE FOR AN
ANNUAL LEVY AND COLLECTION OF ASSESSMENTS FOR
FISCAL YEAR 2014 -2015; AND TO SET A TIME AND PLACE
FOR A PUBLIC HEARING TO RECEIVE PUBLIC
TESTIMONY ON THE FOREGOING MATTERS; AND TO
GIVE PRELIMINARY APPROVAL TO THE CERTIFIED
ENGINEER'S REPORT FOR LANDSCAPE MAINTENANCE
ASSESSMENT DISTRICT 94 -1 (SYCAMORE CROSSING)
WHEREAS, the City Council of the City of Orange previously formed City of Orange
Landscape Maintenance District No. 94 -1 (hereinafter referred to as "Maintenance District ") and
desires to initiate proceedings for the levy of annual increased assessments in connection with the
Maintenance District, pursuant to the provisions of the Landscaping and Lighting Act of 1972,
Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section
22500 (hereinafter referred to as the "Act "), Government Code Section 53753 and the provisions
of the article OD of the California Constitution (hereinafter referred to as the "Article 13D ") and
such constitutional provisions and statutes are referred to collectively as the "Applicable Law ";
and
WHEREAS, there has now been presented to the City Council the Certified Engineer's
Report (hereinafter "Report") as required by the Applicable Law that describes the proposed
annual levy of assessments for fiscal year 2014 -2015 to each parcel, the proposed changes to the
Maintenance District or improvements; and
WHEREAS, the City Council has carefully examined and reviewed the Report and is
satisfied with each and all of the items and documents set forth therein and has made a
preliminary determination that the assessments on each parcel have been proportioned in
accordance with the benefits received by each parcel and that such assessments do not exceed the
estimated reasonable cost of providing the service; and
WHEREAS, at this time the City Council determines to commence proceedings to
provide for the annual levy of assessments for fiscal year 2014 -2015 to pay for the costs and
expenses necessary for the maintenance of the improvements in the Maintenance District.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orange
as follows:
Section I:
That the above recitals are all true and correct.
Resolution No. 10783 e!