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SR - RES-10943 - 2016-17 ANNUAL ASSESSMENT ENGINEERS REPORT LANDSCAPE MAINTENANCE DISTRICT 94-1Of AGENDA ITEM June 14, 2016 TO: Honorable Mayor and Members of the City Council THRU: Rick Otto City Manager FROM: Joe DeFrancesco Public Works Di for Bonnie Hagan, Community Services Director 1. SUBJECT Resolution No. 10943 - 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). 1 2. SUMMARY Each year the process of setting the assessment for the Landscape Maintenance Districts is initiated. The process began on May 10, 2016 with the City Council approval of Resolution No. 10931 which approved the Preliminary Engineers Report for LMD 94 -1 and set June 14, 2016 as the date for the public hearing. This is the second step in the process. This public hearing is held 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 FY 17 will not increase and will 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. 10943 approving the Engineer's Report for the Annual Assessment for Landscape Maintenance Assessment District 94 -1 (Sycamore Crossing); and 2. Establish the assessment for FY17 for Landscape Maintenance Assessment District 94 -1 at $293.08 per single family unit per year. 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 7 will be placed in Fund Number 293. Reviewed/Verified B : City Manager Finance Dire for To Be Presented By: Joe DeFrancesco Cons Calendar City Mgr Rpts Council Reports Legal Affairs Boards /Cmtes X Public Hrgs Admin Reports Plan/Environ ITEM 11.5 1 6/14/16 OPrinted on Recycled Paper 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 FY17 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. ITEM 2 6/14/16 Q Printed on Recycled Paper The proposed budgeted amount for FY17 is $56,560 which is $8,683 over the proposed assessment revenue of $47,877. 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 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. It is expected that after several capital improvements are complete, budgeted amounts in subsequent years will be in line with expenditures and in no instance will expenditures exceed the combination of annual revenues and available fund balance. 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. Landscape Maintenance Services will be out to public bid for the FY17 budget cycle and it is anticipated that the cost for this service will increase. The budget based on anticipated expenditures for FY17 will take this, as well as reinstated staffing costs and any planned improvements to the landscape into account. 8. ATTACHMENTS • Resolution No. 10943 • Engineer's Report FS:tma:ly N: \Public Works \Subdivision\Assessment Districts \_Landscape Maintenance District \94 -1 - Sycamore Crossing\2016- 17 \(3) Public Hearing & Final Report\LMD 94- 1 Public Hearing Agenda FY 2016- 17.doc ITEM 3 6/14/16 0 ■4Printed on Recycled Paper RESOLUTION NO. 10943 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. 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 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 2016/2017 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` Monday in August.