SR - RES-11002 - 2017-18 ANNUAL ASSESSMENT ENGINEERS REPORT1. SUBJECT
Resolution No. 11002 - 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. 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 FYI
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. 11002 declaring the City's intent to provide for an annual levy and
collection of assessments for FYI 8;
2) Approve the Preliminary Engineer's Report; and
3) Set June 13, 2017 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.
5. STRATEGIC PLAN GOAL(S)
3. Enhance and promote quality of life in the community —
a. 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.
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 FY18 as
they are for the current fiscal year. The 124 units in the interior of the tract are currently assessed
at $293.08. 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 FYI is estimated to be $59,607. The proposed assessment will generate
$47,877 in revenue. The projected Year -End Reserve Fund balance is $39,341 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.
The estimated District expenditure for the current fiscal year is approximately $59,607. The fund
balance can support the deficit from revenue for 3 to 4 years.
8. ATTACHMENTS
• Resolution No. 11002
• Preliminary Engineer's Report
RESOLUTION NO. 11002
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 2017 -2018; 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 1313") 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 2017 -2018 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 2017 -2018 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 L•
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. 11002