SR - LMD-15-1 - 2016-17 ANNUAL ASSESSMENT ENGINEERS REPORTAGENDA ITEM
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May 10, 2016
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TO: Honorable Mayor and
Members of the City Council
THRU: Rick Otto
City Manager
FROM: Joe DeFrancesco
fir Public Works Di for
Barbara Messick
Acting Community Services Director
1. SUBJECT
Resolution No. 10930 - A Resolution of the City Council of the City of Orange regarding
Landscape Maintenance Assessment District 15 -1 (LMD 15 -1 Santiago Hills Overlay) declaring
its intention to provide for an annual levy and collection of assessments for Fiscal Year 2016 -2017
(FY17); 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 15 -1
Santiago Hills Overlay.
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 FY17 revenues of $925,994 and expenses
of $925.994. The District is fully funded.
3. RECOMMENDED ACTION
1) Adopt Resolution No. 10930 to approve the Preliminary Engineer's Report for Landscape
Maintenance District 15 -1;
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.
4. FISCAL IMPACT :==1
The Santiago Hills Maintenance District 15 -1 pays all costs of District administration and related
activities. The assessment revenue of $334,670 for FY17 will be placed in Fund Number 291.
Reviewed/Verified
City Manager
Finance Director
To Be Presented By:
Joe DeFrancesco
X Cons Calendar
_ City Mgr Rpts
Council Reports
Legal Affairs
Boards /Cmtes
_ Public Hrgs
Admin Reports
Plan/Environ
ITEM 3-M 1 5/10/16
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
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.
This year's assessment for a single family detached equivalent unit is $239.70. This is an increase
of $4.70 over the Fiscal Year 2015 -2016 assessment. This is the maximum assessment plus the
cost of living adjustment, based on the Consumer Price Index of 2% as detailed within the
Engineer's Report. Revenue in the District is derived from assessments paid by property owners,
both residential and commercial, as well as Rancho Santiago Community College District which
reimburses the District for the cost to maintain the parkways adjacent to the college.
The maximum assessment total for LMD 15 -1 for FY17 is $334,670. Expenditures in FY17 are
also anticipated to be approximately $334,670 (including Capital Replacement/Dedicated
Reserve), 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.
8. ATTACHMENTS
• Resolution No. 10930
• Preliminary Engineer's Report
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\ \CIV- FS- VM1 \pwk\Pub1ic Works\ADMQV\LYoung \Council Items \C0UNCIL \May- 2016 \5- 10\LMD 15 -1 Agenda Intent FY 2016- 17.docx
ITEM 2 5/10/16
RESOLUTION NO. 10930
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ORANGE REGARDING LANDSCAPE MAINTENANCE
ASSESSMENT DISTRICT 15 -1 (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 15 -1 (SANTIAGO HILLS)
WHEREAS, the City Council of the City of Orange previously formed City of Orange
Landscape Maintenance District No. 15 -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 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 1L-
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. 10930