SR - LMD-94-1 - 2016-17 ANNUAL ASSESSMENT ENGINEERS REPORTAGENDAITEM
May 10, 2016
TO: Honorable Mayor and
Members of the City Council
THRU: Rick Otto
City Manager r Q
FROM: Joe DeFrancesco
" Public Works Di ctor
Barbara Messick
Acting Community Services Director
1. SUBJECT
Resolution No. 10931 - 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 2016 -2017 (FY 17); setting
a time and place for a Public Hearing to receive public testimony on the foregoing matters; and
preliminarily approving the Certified Engineer's Report for Landscape Maintenance Assessment
District 94 -1 (Sycamore Crossing).
2. SUMMARY
Each year in May 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 for FY 17 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
1) Adopt Resolution No. 10931 declaring the City's intent to provide for an annual levy and
collection of assessments for FYI 7;
2) Approve the Preliminary Engineer's Report; and
3) Set June 14, 2016 as the date for a Public Hearing.
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 FYI is placed in Fund 293.
ReviewedNerifie
City Manager '
Finance Direct
To Be Presented By: Joe De Francesco
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ITEM �� 1 05/10/2016
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 Conditional 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 FY 17 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
which remains as open space is assessed at $117.23 per year and the smaller lot for a future water
well is $58.62 per year.
The total expenditure for FY17 is estimated to be $59,607. The proposed assessment will generate
$47,877 in revenue. The projected year -end Reserve Fund balance is $22,005 and the District is
funded entirely by annual assessment revenue. The fund balance will be used for repairs and
ITEM 2 05/10/2016
replacement of infrastructure such as fences, irrigation and landscape. Staff has been reducing
expenditures during the last five 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, only a portion of the Park Maintenance Supervisor salary for the
oversight of the District, (approximately $2,086) is being charged to the District. The Landscape
Coordinator position was vacant earlier this fiscal year 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 the Landscape Coordinator
position has been filled and will be re- engaged in FY17 to oversee maintenance services in the
District.
The estimated District expenditure for the current fiscal year is approximately $59,607. The fund
balance can support the deficit from revenue for 2 to 3 years.
8. ATTACHMENTS
• Resolution No. 10931
• Preliminary Engineer's Report
JD;ta;ly
NAPublic Works \ADMIN \LYoung \Council Items \COUNCIL\May - 2016\5- 10\LMD 94 -1 Agend, Final.docx
ITEM 3 05/10/2016
RESOLUTION NO. 10931
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 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 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 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 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 2016 -2017 to pay for the costs and expenses
necessary for the maintenance of the improvements in the Maintenance District.
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 repair, removal or
replacement of any of the landscaping improvements, including walkways, signage, irrigation,
Resolution No. 10931