SR - RES-11008 - 2017-18 ANNUAL ASSESSMENT ENGINEERS REPORT1. SUBJECT
Resolution No. 11008 - Landscape Maintenance Assessment District 86 -2 (Santiago Hills).
2. SUMMARY
Each year the process for setting the assessment of the Landscape Maintenance Districts is
initiated. The process began on May 9, 2017 with the City Council approval of Resolution No.
11000 which approved the Preliminary Engineers Report for Landscape Maintenance
Assessment District (LMD) 86 -2 and set June 13, 2017 as the date for the public hearing. This
public hearing is the second step in the process and 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 total assessment to be
levied from Assessment District 86 -2 (Santiago Hills) and Assessment District 15 -1 (Santiago
Hills Overlay) for Fiscal Year 2018 (FY18) are $533,281 and $341,363, 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. This is based on the Bureau of Labor Statistics CPI -U for Los Angeles - Riverside- Orange
County areas as of December 2016. Revenues of $41,002 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 FY18 revenues of $915,646 and expenses of $915,646 (including Capital
Replacement/Dedicated Reserves). Approval of the LMD 15 -1 Engineer's Report is a separate
Agenda item. The District is fully funded.
3. RECOMMENDED ACTION
1. Adopt Resolution No. 11008 approving the Engineer's Report for the Annual Assessment for
Landscape Maintenance Assessment District 86 -2 (Santiago Hills); and
2. Establish the assessment for FY18 for Landscape Maintenance Assessment District 86 -2 at
$369.44 per single family detached unit per year.
4. FISCAL IMPACT
The Santiago Hills Landscape Maintenance District 86 -2 combined with LMD 15 -1 pays all
costs of District administration and related activities. The FY18 assessment revenue of $533,281
for LMD 86 -2 and $341,363 for LMD 15 -1 will be placed in Fund Number 291.
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 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 Rancho
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. Approval of the Final Engineer's Report for LMD 15 -1 is a separate Agenda Item.
The proposed FYI 8 budget for the combined LMD 86 -2 and LMD 15 -1 indicates the amount of
funding required to maintain the district and provide a 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 a FY18 increase of 2% based on
the CPI -U for the Los Angeles- Orange- Riverside area.
An annual CPI -U adjustment with a cap of 3% 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.
The maximum assessment total for LMD 86 -2 for FY18 is $533,281. Expenditures in FY18 are
also anticipated to be approximately $533,281, which is $0 over revenues.
The attached Final Engineer's Report contains detailed information about the assessment.
8. ATTACHMENTS
• Resolution No. 11008
• Final Engineers Report
FS:tal:cp
ITEM 3 6/13/17
O Printed on Recycled Paper
RESOLUTION NO. 11008
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 86 -2 (SANTIAGO
HILLS).
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. 86 -2 (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 2017/2018 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.