SR - RES-11009 - 2017-18 ANNUAL ASSESSMENT ENGINEERS REPORTi. SUBJECT
Resolution No. 11009 - Landscape Maintenance Assessment District 15 -1 (Santiago Hills
Overlay).
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.
11001 which approved the Preliminary Engineers Report for Landscape Maintenance
Assessment District (LMD) 15 -1 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. 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
(FYI 8) 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 area 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 86 -2 Engineer's Report is a separate Agenda item. The District
is fully funded.
3. RECOMMENDED ACTION
1. Adopt Resolution No. 11009 approving the Engineer's Report for the Annual Assessment for
Landscape Maintenance Assessment District 15 -1 (Santiago Hills Overlay); and
2. Establish the assessment for FY 18 for Landscape Maintenance Assessment District 15 -1 at
$244.49 per single family detached unit per year.
4. FISCAL IMPACT
The Santiago Hills Landscape Maintenance District 15 -1 combined with LMD 86 -2 pays all
costs of District administration and related activities. The FYI assessment revenue of $341,363
for LMD 15 -1 and $533,281 for LMD 86 -2 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
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 FY 18 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 an annual increase of 2% based on
the Consumer Price Index (CPI) for the Los Angeles- Orange- Riverside area as of December
2016. 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.
This year's assessment for a single family detached equivalent unit is $244.49. This is an
increase of $4.79 over the Fiscal Year 2017 (FY17) 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 District is fully funded.
The maximum assessment total for LMD 15 -1 for FYI is $341,363. Expenditures in FYI are
also anticipated to be approximately $341,363 (including Capital Replacement/Dedicated
Reserve), which is $0 over revenues.
The attached Final Engineer's Report contains detailed information about the assessment.
8. ATTACHMENTS
• Resolution No. 11009
• Final Engineer's Report
RESOLUTION NO. 11009
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 15 -1 (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. 15 -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 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.