SR - LMD-86-2 - 2016-17 ANNUAL ASSESSMENT ENGINEERS REPORT1. SUBJECT
Resolution No. 10929 - A Resolution of the City Council of the City of Orange regarding
Landscape Maintenance Assessment District 86 -2 (LMD 86 -2 Santiago Hills) declaring its
intention to provide for an annual levy and collection of assessments for Fiscal Year 2016 -2017
(FYI 7); 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 LMD 86 -2
Santiago Hills.
2. SUMMARY
Each year in May the process of setting the assessment for the Landscape Maintenance Districts
(LMD) is started. This is the first step in the process. The total assessment to be levied from
Assessment District 86 -2 (Santiago Hills) and Assessment District 15 -1 (Santiago Hills Overlay)
for FY17 are $533,281 and $334,670, respectively. Per the approved formation of LMD 15 -1 and
subsequent affirmative vote of the majority of property owners in the District, the assessment
includes a 2% increase which is tied to the Consumer Price Index. Revenues of $58,043 from
Rancho Santiago Canyon College District are included as a reimbursement for landscape
maintenance costs paid by LMD 86 -2 and 15 -1, for total FYI revenues of $925,994 and expenses
of $925.994 (including Capital Replacement/Dedicated Reserves). The District is fully funded.
3. RECOMMENDED ACTION
1) Adopt Resolution No. 10929 to approve the Preliminary Engineer's Report for Landscape
Maintenance District 86 -2;
2) Declare the intent to levy an annual assessment; and
3) Set June 14, 2016 as the date for the Public Hearing on the assessments.
ITEM 3. Q � 1 5/10/16
Q Printed on Recycled Paper
4. FISCAL IMPACT
The Santiago Hills Maintenance District 86 -2 pays all costs of District administration and related
activities. The assessment revenue of $533,281 for FYI will be placed in Fund Number 291.
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. DISCUSSIONS and BACKGROUND
In 1987, Landscape Maintenance District 86 -2 was established to maintain the landscape
improvements constructed by Assessment District 86 -1 (LMD 86 -1) in Santiago Hills. Annually,
a detailed accounting of expenses is compiled and a new assessment is calculated for the benefiting
property owners.
This year's assessment for a single family detached equivalent unit is $369.44. This is the same
as last year and the largest assessment currently allowed. Revenue in the District is derived from
assessments paid by property owners, both residential and commercial, as well as Ranch Santiago
Community College District who reimburses the District for the cost to maintain the parkways
adjacent to the school.
On April 14, 2015, the City Council approved the formation of a new district (LMD 15 -1) to
exactly overlay the existing LMD 86 -2 and to provide the additional funding necessary to serve
the District. The annual assessment for LMD 15 -1 was approved by the property owners on June
9, 2015.
The proposed FY17 budget for the combined LMD 86 -2 and LMD 15 -1 indicates the amount of
funding required to bring service levels to the pre- service reduction levels of 2007 and a small
capital budget to gradually replace aging landscaping and infrastructure over time. The existing
LMD 86 -2 would stay at the maximum assessment, however, the assessment for LMD 15 -1
includes an annual increase of 2% based on the Consumer Price Index (CPI) for the Los Angeles -
Orange- Riverside area. This annual increase was included in the formation of LMD 15 -1 in April
2015 and was approved by a majority of the property owners in June 2015. Additional revenues
to fully fund the district would be obtained through the overlay district, LMD 15 -1, and a separate
agreement with Rancho Santiago Community College District. The District will be fully funded.
ITEM 2 5/10/16
The maximum assessment total for LMD 86 -2 for FY17 is $533,281. Expenditures in FY17 are
also anticipated to be approximately $533,281, which is $0 over revenues.
The attached Preliminary Engineer's Report contains detailed information about the assessment.
It is proposed to schedule the Public Hearing on this assessment for June 14, 2016.
18. ATTACHMENTS
• Resolution No. 10929
• Preliminary Engineer's Report
JD;ta;ly
\ \CIV- FS- VMl \pwk\Public Works \ADNIMLYoung \Council Items \COUNCIL\May - 2016 \5- 10\LMD 86 -2 Agenda Intent FY 2016- 17.docx
ITEM 3 5/10/16
RESOLUTION NO. 10929
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ORANGE REGARDING LANDSCAPE MAINTENANCE
ASSESSMENT DISTRICT 86 -2 (SANTIAGO HILLS)
DECLARING IT'S INTENTION TO PROVIDE FOR AN
ANNUAL LEVY AND COLLECTION OF ASSESSMENTS FOR
FISCAL YEAR 2016 -2017; 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 86 -2 (SANTIAGO HILLS)
WHEREAS, the City Council of the City of Orange previously formed City of Orange
Landscape Maintenance District No. 86 -2 (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 13D 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 2016 -2017 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 are reasonable based on the revised
scope of services that will be offered; and
WHEREAS, at this time the City Council determines to commence proceedings to provide
for the annual levy of assessments for fiscal year 2016 -2017 to pay for the costs and expenses
necessary for the level of maintenance of the improvements in the Maintenance District as afforded
by the maximum assessment levied.
follows:
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orange as
Section I:
That the above recitals are all true and correct.
Section II:
That the public interest and convenience require the undertaking of proceedings for the
annual levy and collection of assessments to pay the costs and expenses for the maintenance of the
improvements within the Maintenance District, which in general include: the maintenance, repair,
Resolution No. 10929