03.36 LMD 15-1 Santiago Hills Overlay FY191. SUBJECT
Resolution No. 11078 - Landscape Maintenance Assessment District 15 -1 (LMD 15 -1 Santiago
Hills Overlay).
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 a
reimbursement for landscape maintenance costs paid by LMD 86 -2 and 15 -1, for total FY 19
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. 11078 to approve the Preliminary Engineer's Report for Landscape
Maintenance District 15 -1;
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 15 -1 pays all costs of District administration and related
activities. The assessment revenue of $341,276 for FY 19 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
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. The existing
LMD 86 -2 would stay at the maximum assessment, however, the assessment for LMD 15 -1 allows
for an annual increase based on the Consumer Price Index (CPI) for the Los Angeles- Orange-
Riverside area. This annual increase 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.
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. For FY19, the CPI for the
region is 3.6 %. However, due to the remaining fund balance from Fiscal Year 2017/2018, the
Community Services Department staff recommends setting the CPI adjustment to 0 %. This year's
assessment for a single family detached equivalent (SFE) unit is $244.49. This is the same as the
Fiscal Year 2017 -2018 assessment.
The assessment total for LMD 15 -1 for FY19 is $341,276. This is the same assessment total as last
year. Expenditures in FY19 are also anticipated to be approximately $341,276 (including Capital
Replacement /Dedicated Reserve), which is $0 over revenues.
In past years, there were no vacant properties. In October 2017, the Canyon Fire 2 destroyed a
home on a single family residence in LMD 15 -1. As detailed in the Engineer's Report, the vacant
property was assessed at 55% the SFE unit per the conditions of the LMD. This meant the total
assessment for LMD 15 -1 decreased $87 from the previous year.
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. 11078
• Preliminary Engineer's Report
FS;gh;cp
ITEM 2 05/08/18
RESOLUTION NO. 11078
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ORANGE REGARDING LANDSCAPE MAINTENANCE
ASSESSMENT DISTRICT 15 -1 (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 15 -1 (SANTIAGO HILLS)
WHEREAS, the City Council of the City of Orange previously formed City of Orange
Landscape Maintenance District No. 15 -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 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.
.Section IT
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. 11078
CITY COUNCIL MINUTES MAY 8, 2018
3. CONSENT CALENDAR (Continued)
3.36 Landscape Maintenance Assessment District 15 -1 (LMD 15 -1 Santiago Hills
Overlay). Resolution No. 11078. (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 15 -1 (LMD 15 -1 Santiago Hills Overlay) 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 15 -1 (Santiago Hills).
ACTION: 1) Adopted Resolution No. 11078 to approve the Preliminary Engineer's Report
for Landscape Maintenance District 15 -1; 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.
3.37 Memorandum of Understanding between the City of Orange and the Orange City
Fire Fighters, Inc. Local 2384 of the International Association of Fire Fighters, AFL -
CIO effective July 1, 2017, to June 30, 2019. Resolution No. 11079. (C2500.J.4.3)
A Resolution of the City Council of the City of Orange repealing Resolution No. 10995
and approving the Memorandum of Understanding between the City of Orange and the
Orange City Fire Fighters, Inc. Local 2384 of the International Association of Fire Fighters,
AFL -CIO concerning wages, salaries and other terms and conditions of employment
effective July 1, 2017, through June 30, 2019.
ACTION: Approved Resolution No. 11079.
MOTION — Whitaker
SECOND — Murphy
AYES — Alvarez, Whitaker, Smith, Murphy, Nichols
Mayor pro tem Murphy recorded an abstention on Item 3.11. Mayor Smith recorded an
abstention on Items 3.16 and 3.17. Councilmember Nichols recorded an abstention on
Items 3.35 and 3.36. Item 3.7 was removed from the Consent Calendar and heard
separately. All other items on the Consent Calendar were approved as recommended.
END OF CONSENT CALENDAR
* * * * * * **
4. REPORTS FROM MAYOR SMITH
Mayor Smith congratulated the Community Foundation for the successful Foundation
Games and the Youth Centers of Orange for their successful afterschool youth programs;
and acknowledged all programs and activities happening in Orange.
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