03.35 LMD 86-2 Santiago Hills FY191. SUBJECT
Resolution No. 11076 - Landscape Maintenance Assessment District 86 -2 (LMD 86 -2 Santiago
Hills).
2. SUMMARY
Each year in May, the process of setting the assessment for the Landscape Maintenance Districts
(LMD) is started. This is the first step in the process. The total assessment to be levied from
Assessment District 86 -2 (Santiago Hills), and Assessment District 15 -1 (Santiago Hills Overlay)
for FY19 are $533,281 and $341,276, respectively. There is no increase from Fiscal Year 2017-
2018. Revenues of $41,002 from Rancho Santiago Canyon College District are included as
reimbursement for landscape maintenance costs paid by LMD 86 -2 and 15 -1, for total FY19
revenues of $915,559 and expenses of $915,559 (including Capital Replacement/Dedicated
Reserves). The District is fully funded.
3. RECOMMENDED ACTION
1) Adopt Resolution No. 11076 to approve the Preliminary Engineer's Report for Landscape
Maintenance District 86 -2;
2) Declare the intent to levy an annual assessment; and
3) Set June 12, 2018 as the date for the Public Hearing on the assessments.
4. FISCAL IMPACT
The Santiago Hills Maintenance District 86 -2 pays all costs of District administration and related
activities. The assessment revenue of $533,281 for FY19 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. DISCUSSIONS 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 Ranch 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.
The proposed FY19 budget for the combined LMD 86 -2 and LMD 15 -1 indicates the amount of
funding required to bring service levels to the pre- service reduction levels of 2007 and a small
capital budget to gradually replace aging landscaping and infrastructure over time. 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 existing LMD 86 -2
will stay at the maximum assessment and the assessment for LMD 15 -1 will remain the same as
last year. Typically, the assessment for LMD 15 -1 includes an annual increase based on the
Consumer Price Index (CPI) for the Los Angeles- Orange- Riverside area. This year, due to the
remaining fund balance from Fiscal Year 2017/2018, the Community Services Department staff
recommends setting the CPI adjustment to 0 %. The District will be fully funded.
The maximum assessment total for LMD 86 -2 for FY19 is $533,281. Expenditures in FY19 are
also anticipated to be approximately $533,281, which is $0 over revenues.
ITEM 2 05/08/18
The attached Preliminary Engineer's Report contains detailed information about the assessment.
It is proposed to schedule the Public Hearing on this assessment for June 12, 2018.
8. ATTACHMENTS
• Resolution No. 11076
• Preliminary Engineer's Report
FS;gh;cp
ITEM 3 05/08/18
RESOLUTION NO. 11076
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ORANGE REGARDING LANDSCAPE MAINTENANCE
ASSESSMENT DISTRICT 86 -2 (SANTIAGO HILLS)
DECLARING ITS INTENTION TO PROVIDE FOR AN
ANNUAL LEVY AND COLLECTION OF ASSESSMENTS FOR
FISCAL YEAR 2018 -2019; 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 86 -2 (SANTIAGO HILLS)
WHEREAS, the City Council of the City of Orange previously formed City of Orange
Landscape Maintenance District No. 86 -2 (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 131)") 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 2018 -2019 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 are reasonable based on the revised
scope of services that will be offered; and
WHEREAS, at this time the City Council determines to commence proceedings to provide
for the annual levy of assessments for fiscal year 2018 -2019 to pay for the costs and expenses
necessary for the level of maintenance of the improvements in the Maintenance District as afforded
by the maximum assessment levied.
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.
Sectinn 11-
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 maintenance, repair,
Resolution No. 11076
CITY COUNCIL MINUTES MAY 8, 2018
3. CONSENT CALENDAR (Continued)
3.30 Final Acceptance of Bid No. 178 -16; CDBG FY 16 -17 CDBG Fern Neighborhood
Street and Sewer Improvements; and authorization to file a Notice of Completion
with the County Recorder.
ACTION: Accepted the CDBG FY 16 -17 CDBG Fern Neighborhood Street and Sewer
Improvements project as complete; and authorized the Mayor and City Clerk to execute
the Notice of Completion.
3.31 Purchase and installation of Opticom GPS Emergency Vehicle Preemption System
from DDL Traffic, Inc. (C2500.H)
ACTION: Authorized the sole source purchase and installation of GTT Opticom
Emergency Vehicle Preemption System from DDL Traffic, Inc. not to exceed $62,459.
3.32 Purchase of one heavy duty Class -Eight Compressed Natural Gas (CNG) powered
ten -wheel dump truck. (C2500.M.7)
ACTION: Authorized the purchase of one Class 8, ten -wheel CNG powered Dump Truck
from Los Angeles Freightliner in the amount of $199,875.
3.33 Purchase of six APX8500 Radios from Motorola Solutions. (C2500.J)
ACTION: 1) Authorized the purchase of six APX8500 radios from Motorola Solutions,
Inc. in the amount of $49,181.84; and 2) Authorized the appropriation of $29,000 from
Proposition 172 (120) unreserved fund balance to account 120.0201.56510.20223 (800
MHz CCCS Next Generation).
3.34 Landscape Maintenance Assessment District 94 -1 (Sycamore Crossing). Resolution
No. 11077. (L1200.0)
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 2018 -2019 (FY19).
ACTION: 1) Adopted Resolution No. 11077 declaring the City's intent to provide for an
annual levy and collection of assessments for FY19; 2) Approved the Preliminary
Engineer's Report; and 3) Set June 12, 2018, as the date for a Public Hearing.
3.35 Landscape Maintenance Assessment District 86 -2 (LMD 86 -2 Santiago Hills).
Resolution No. 11076. (L1200.0)
NOTE: Councilmember Nichols recorded an abstention due to a potential conflict with a
nearby property interest.
A Resolution of the City Council of the City of Orange regarding Landscape Maintenance
Assessment District 86 -2 (Santiago Hills) declaring its intention to provide for an annual
levy and collection of assessments for Fiscal Year 2018 -2019; 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 86 -2 (Santiago Hills).
ACTION: 1) Adopted Resolution No. 11076 to approve the Preliminary Engineer's Report
for Landscape Maintenance District 86 -2; 2) Declared the intent to levy an annual
assessment; and 3) Set June 12, 2018, as the date for the Public Hearing on the assessments.
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