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SR - LMD-94-1 - 2014-15 ANNUAL ASSESSMENT ENGINEERS REPORT�pF Og, a Q A' • !pu s.ua. � y� �bU CP 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 Council Reports _ Legal Affairs Boards /Crates Public Hrgs _ 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. ITEM Z.Z 1 5/13/14 OPPrinted on Recycled Paper 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. ITEM 2 5/13/14 O Printed on Recycled Paper 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 JD:jd:ly N:\ADMIN\LYoung \Council Items\ LMD 94 -1 AGENDA intent FY14- 15a.docx ITEM 3 5/13/14 O Printed on Recycled Paper 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!