SR - LMD-86-2 - 2014-2015 ANNUAL ASSESSMENT ENGINEERS REPORT (2)AGENDA ITEM
June 10, 2014
TO: Honorable Mayor and
Members of the City Council
THRU: John W. Sibley
City Manager
FROM: Joe DeFrancesco
Public orks for
Marie K"
nigh
Sery s Direc r
1. SUBJECT
Resolution No. 10789; A Resolution of the City Council of the City of Orange approving the
Engineer's Report and providing for the Annual Assessment for Landscape Maintenance
Assessment District 94 -1 (Sycamore Crossing).
2. SUMMARY
On May 13 Council adopted Resolution No. 10783 which approved the Preliminary Engineers
Report for LMD 94 -1 and set June 10 as the date for the public hearing. Each year the process
of setting the assessment for the Landscape Maintenance Districts is initiated. The process began
on May 13, 2014 with the City Council approval of the Resolution of Intent. This is the second
step in the process. It is recommended that the City Council now hold the public hearing in
accordance with the Lighting and Landscape Maintenance Act of 1972 as outlined in the "Order
of Procedure ". At this time, property owners will have an opportunity to be heard on this issue.
The proposed assessments for fiscal year 2014 -2015 will not increase and remain the same as
last year at $293.08 per single family detached unit. This is the maximum allowable assessment.
The total assessment to be levied in Landscape Maintenance District 94 -1 (Sycamore Crossing)
will be $47,877.
3. RECOMMENDED ACTION
1. Adopt Resolution No. 10789 approving the Engineer's Report for the Annual Assessment for
Landscape Maintenance Assessment District 94 -1 (Sycamore Crossing).
2. Establish the assessment for fiscal year 2014/2015 for Landscape Maintenance Assessment
District 94 -1 at $293.08 per single family unit per year.
ReviewedNer ied By:
City Manager
Finance Direc or
To Be Presente y: Joe DeFrancesco
Cons Calendar
City Mgr Rpts
Council Reports
Legal Affairs
Boards /Crates X
Public Hrgs
Admin Reports
Plan/Environ
ITEM A -5 1 6/10/14
14Printed on Recycled Paper
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.
5. STRATEGIC PLAN GOAL(S)
3a. Enhance and promote quality of life in the community - refurbish, maintain, develop and /or
expand public use places and spaces.
6. GENERAL PLAN IMPLEMENTATION
Land Use Element Goal 6.0 Advance development activity that is mutually beneficial to both
the environment and the community.
Policy 6.3 - Establish and maintain greenways and pedestrian and bicycle connections that
complement the residential, commercial and open space areas they connect.
Policy 6.8 - Maximize landscaping along streetscapes and within development projects to
enhance public health and environmental benefits.
7. DISCUSSION and BACKGROUND
In 1995, Landscape Maintenance District No. 94 -1 was established to maintain the landscape and
flood control improvements along Santiago Creek that were constructed by Tract No. 14752
(Sycamore Crossing). Resolution 8462 approved 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
ITEM 2 6/10/14
Cf Printed on Recycled Paper
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.
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
$50,506 and the District is funded entirely by annual assessment revenue. The fund balance will
be used for repairs and replacement of infrastructure such as tree and other landscape
replacement, cyclical tree trimming, and irrigation repair. 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 expenditures. Cost reducing measures that have been employed
include reducing landscape areas, the frequency of landscape service, reduced irrigation and
deactivation of the trail lighting system. Subsequent to deactivating the trail lighting, the paved
bike trail was removed from the District and included in the City's trail inventory, further
helping to reduce the burden on the District budget.
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. 10789
• Engineer's Report
• Map
FS:gl:ly
N:\Public Works\ADMIN \LYoung \Council Items \COUNCIL \June 2014 \94 -1 Agenda 1415.doc
ITEM 3 6/10/14
C .z
oPrinted on Recycled Paper
RESOLUTION NO. 10789
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ORANGE APPROVING THE ENGINEERS REPORT AND
PROVIDING FOR THE ANNUAL ASSESSMENT FOR
LANDSCAPE MAINTENANCE DISTRICT 94 -1 (SYCAMORE
CROSSING).
WHEREAS, the City Council of the City of Orange has previously formed a special maintenance
district pursuant to the terms of the "Landscaping and Lighting Act of 1972" being part 2 of Division 15
of the Streets and Highways Code of the State of California, in what is known and designated as
Landscape Maintenance District No. 94 -1 (hereinafter referred to as "Assessment District "); and
WHEREAS, the City Council has initiated proceedings for the levy of the annual assessment for
the Assessment District; and
WHEREAS, at this time a public hearing has been held in the manner and form as required by
law, and the City Council has considered all oral statements and written protests made or filed by all
interested persons; and
WHEREAS, this City Council is now satisfied with the assessment and diagram and all other
matters as contained in the Engineer's Report as now submitted for final consideration and approval, and
is now desirous of proceeding with the levy of the annual assessment.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orange as
follows:
Section I•
That the above recitals are all true and correct.
Section II•
That all protests and objections of every kind and nature by, and the same hereby are, overruled
and denied.
Section III•
That the Final Engineer's Report consisting of the final submitted assessment and diagram for the
proceedings, is hereby approved and confirmed and a copy of said Report is hereby filed with the City
Clerk.
Section IV•
That the assessments for fiscal year 2014/2015 be established as approved by the City Council,
and are hereby confirmed and levied upon the respective subdivisions of land in the Assessment District
in the amounts as set forth in said final approved Engineer's Report.
Section V•
The City Clerk shall immediately accomplish the following:
A. Deliver to the City Engineer the assessment, together with the diagram attached thereto and
made a part thereof, as confirmed, with a Certificate of Confirmation attached and the date thereof. Said
City Engineer shall then immediately place for a record said diagram and assessment in his office in a
suitable book as a permanent record and attach a Certificate of Recordation.
B. Cause to be filed a certified copy of a diagram and assessment with the County Auditor, said
filing to be completed no later than the 3 rd Monday in August.