SR - LMD-94-1 - 2015-16 ANNUAL ASSESSMENT ENGINEERS REPORT,p er
BOU C
AGENDA ITEM
May 12, 2015
TO: Honorable Mayor and
Members of the City Council
THRU: Rick Otto
Interim City Man
FROM: Joe DeFrancesco
Public Works Di a for
Marie t Community er ces Vi�i
1. SUBJECT
ReviewedNerified
City Manager
Finance Director
To Be Presented By:
Joe DeFrancesco
X Cons Calendar
City Mgr Rpts
Council Reports
Legal Affairs
Boards /Crates
Public Hrgs
Admin Reports
_
Plan/Environ
Resolution No. 10863 - 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 2015 -2016; 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).
2. SUMMARY
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 2015/2016 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. 10863 declaring the City's intent to provide for an annual levy and collection
of assessments for fiscal year 2015 -2016, to set June 9, 2015 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 2015/2016 will be placed in Fund Number 293.
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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 63: 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
2015/2016 as they are for the current fiscal year. The 124 units in the interior of the Tract are
currently assessed at $293.08 which is the maximum allowable assessment by Proposition 218.
The 36 units adjacent to the landscape improvement are currently assessed at $298.94 per unit.
The senior citizens housing site is currently assessed at $597.88 per year. 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.
The total expenditure for fiscal year 2015 -16 is estimated to be $51,547.00. The proposed
assessment will generate $47,877 in revenue. The projected year -end Reserve Fund balance is
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$25,812 and the District is funded entirely by annual assessment revenue. The fund balance will
be used for repairs and replacement of infrastructure such as fences, irrigation and landscape. Staff
has been reducing expenditures during the last three fiscal years to maintain District expenditures
within revenues, however maintenance and utility costs (primarily water) continue to rise, resulting
in the need to maintain reduced service and utility costs. Cost reducing measures that have been
employed include reducing landscape areas, the frequency of landscape service, staff oversight
and deactivation of the trail lighting system.
During this current fiscal year, a portion of the Landscape Coordinator salary for the oversight of
the District, approximately $2,500 has been charged to the District. The Landscape Coordinator
position has been vacant and other staff has been providing limited oversight of the District and
its contract services. The salary savings to the District has reduced the impact of the rising
maintenance costs of the District but also resulted in very limited oversight and management of
the District maintenance. The temporary 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 $51,547. The fund
balance can support the deficit from revenue for 2 to 3 years.
8. ATTACHMENTS
• Resolution No. 10863
• Preliminary Engineer's Report
JD;ta;ly
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