03.21 LMD 86-2 and 15-1 Santiago Hills FY20-21OF OR9{
GpPPOpq>R,O'YV'
AGENDA ITEM
qqill 6.
May 12, 2020
TO: Honorable Mayor and Members of the City Council
THRU: Rick Otto, City Manager
FROM: Christopher Cash, Public Works Director 27/
Bonnie Hagan, Community Services Directorl 7Y
REVIEW: City Manager Finance`---
1. SUBJECT
A Resolution of the City Council of the City of Orange regarding Landscape Maintenance
Assessment Districts 86-2 (Santiago Hills) and 15-1 (Santiago Hills Overlay) declaring its
intention to provide for an annual levy and collection of assessments for Fiscal Year 2020-
2021; set a time and place for a public hearing to receive public testimony on the foregoing
matters; and give preliminary approval to the certified Engineer's Report for Landscape
Maintenance Assessment Districts 86-2 (Santiago Hills) and 15-1 (Santiago Hilis
Overlay).
2. SUMMARY
The City declares its intention to assess an annual levy, approve the Preliminary
Engineer's Report and set a public hearing. The total assessment to be levied from
Landscape Maintenance Assessment Districts 86-2 (Santiago Hills) and Landscape
Maintenance Assessment District 15-1 (Santiago Hills Overlay)for Fiscal Year 2020-2021
is $533,651 and $341,358, respectively. Staff recommends no increase for Fiscal Year
2019-2020.
3. RECOMMENDED ACTION
1. Approve Resolution No. 11229 to approve the Preliminary Engineer's Report for
Landscape Maintenance Districts 86-2 and 15-1 for Fiscal Year 2020-2021.
2. Declare the intent to levy an annual assessment, and set June 9, 2020, at 6:00 PM
via teleconference, as the time and place for the Public Hearing on the assessments.
4. FISCAL IMPACT
The total expenditure for this accessment is $1,417,415 and will be funded through
Santiago Hills and Santiago Hills Overlay Landscape Maintenance Districts (291).
ITEM 3.a i 05 2 2020
5. STRATEGIC PLAN GOALS
Goal 3: Enhance and promote quality of life in the community
a: Renovate, maintain, develop and/or expand public use places and spaces.
6. DISCUSSION AND BACKGROUND
In 1987, Landscape Maintenance District 86-2 (LMD 86-2) was established to maintain
the landscape improvements constructed by Assessment District 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 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 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 Fiscal Year 2020-2021 (FY21) budget for the combined LMD 86-2 and
LMD 15-1 indicates the amount of funding required to maintain District landscape and
provides a capital budget to 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-Long Beach-Anaheim area. This year, due to the remaining fund balance from
Fiscal Year 2019-2020,the Community Services Department staff recommend setting the
CPI adjustment to 0%. The District will be fully funded.
The maximum assessment total for LMD 86-2 for FY20 is $533,651. The assessment
total for LMD 15-1 for FY20 is $341,358, which is the same assessment total as last year.
Revenues of$25,287 from Rancho Santiago Community College District are included as
a reimbursement for landscape maintenance costs paid by LMD 86-2 and LMD 15-1. This
totals to $900,296 in revenue. Expenditures in FY21 are anticipated to be approximately
1,417,415 which is $517,119 over revenues. These expenditures include $500,000 to
be used towards capital improvement projects proposed in the FY21 budget. The City
continues to actively work with District residents on implementing a renovation plan for
their 30 year old'landscape that is both fiscally and environmentally sustainable. The
projected year-end reserve fund balance is $586,207. Reserve funds will be used to
supplement the deficit in FY21 expenditures.
The attached Preliminary Engineer's Report contains detailed information about the
assessment. It is proposed to schedule the Public Hearing on June 9, 2020 at 6:00 PM
via teleconference.
ITEM 2 05/12/2020
7. ATTACHMENTS
1. Resolution No. 11229— Landscape Maintenance Assessment Districts 86-2
Santiago Hills) and 15-1 (Santiago Hills Overlay)
2. Preliminary Engineer's Report for the Annual Levy - Assessment Landscape
Maintenance District No. 86-2 — Fiscal Year 2020-2021
3. Preliminary Engineer's Report for the Annual Levy -Assessment Landscape
Maintenance District No. 15-1 — Fiscal Year 2020-2021
ITEM 3 05/12/2020
LM
RESOLUTION NO. 11229
A RESOLUTION OF THE CITY COUNCIL ( r _` `
THE CITY OF ORANGE REGARDIr
LANDSCAPE MAINTENANCE ASSESSMEr
DISTRICTS 86-2 (SANTIAGO HILLS)AND 1-
1 (SANTIAGO HILLS OVERLAY)
DECLARING ITS INTENTION TO PROVIDE
FOR AN ANNUAL LEVY AND COLLECTION
OF ASSESSMENTS FOR FISCAL YEAR 2020-
2021, SET A TIME AND PLACE FOR A
PUBLIC HEARING TO RECEIVE PUBLIC
TESTIMONY ON THE FOREGOING
MATTERS, AND GIVE PRELIMINARY
APPROVAL OF THE CERTIFIED
ENGINEER'S REPORT FOR LANDSCAPE
MAINTENANCE ASSESSMENT DISTRICTS
86-2 AND 15-1
WHEREAS, the City Council of the City of Orange previously formed City of
Orange Landscape Maintenance District Nos. 86-2 and 15-1 (hereinafter "Maintenance
Districts") and desires to initiate proceedings for the levy of annual increased assessments
in connection with the Maintenance Districts,pursuant to the provisions of the Landscaping
and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways
Code beginning with Section 22500 (hereinafter the "Act"), Government Code Section
53753 and the provisions of Article 13D of the California Constitution(hereinafter"Article
13D"). 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 Reports(hereinafter"Reports")as required by the Applicable Law that describe
the proposed annual levy of assessments for each parcel for fiscal year 2020-2021 and the
proposed changes to the Maintenance Districts or improvements; and
WHEREAS, the City Council has carefully examined and reviewed the Reports
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 2020-2021 to pay for the costs
and expenses necessary for the maintenance of the improvements in the Maintenance
Districts.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Orange as follows:
Section I:
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 Districts, which in general
include: the maintenance, repair, removal or replacement of any of the landscaping
improvements, including walkways, signage, irrigation, trimming, spraying, and
fertilizing, and as such maintenance is more particularly described in the Reports on file
with the City Clerk(hereinafter"maintenance of improvements").
Section 11I:
That the maintenance of improvements is of direct benefit to the properties within
the boundaries of the Maintenance Districts, which the City Council previously declared
to be the area benefited and which area is more particularly described in the boundary map
open for public inspection and on file with the City Clerk bearing the designation of the
Maintenance District.
Section IV:
That the Reports are preliminarily approved and ordered to be on file with the City
Clerk and open for public inspection. The Reports contain a full and detailed description
of the existing works of improvement,the boundaries of the Maintenance Districts and any
zones therein,and the proposed assessments upon parcels within the Maintenance Districts.
Section V.
The City shall give notice of the time and place of the public hearing to all property
owners of record within the Maintenance Districts subject to a levy of assessment.
Section VI:
Notice is hereby given that Tuesday, June 9`h, 2020, at 6:00 p.m. at City Hall, 300
E. Chapman Avenue, Orange, CA 92866, is the time and place fixed by the City Council
for hearing protests or objections in reference to the proposed annual levy of assessments
for the Maintenance Districts in accordance with Government Code Section 53753 and
Article 13D and any other matters contained in this Resolution. Any persons who wish to
object to the proceedings or the annual levy should file a written protest with the City Clerk
prior to the time set for the public hearings.
Reso.No. 11229 2 MEB
Section VII:
For any and all information relating to these proceedings, including information
relating to protest procedure, contact the person designated below:
Medel Llanes, Principal Civil Engineer
City of Orange Public Works Department
P.O. Box 449- 300 East Chapman Avenue
Orange, California 92866-0449
714) 744-5535
ADOPTED this day of 2020
Mark A. Murphy, Mayor,City of Orange
ATTEST:
Pamela Coleman, City Clerk, City of Orange
I, PAMELA COLEMAN, City Clerk of the City of Orange, California, do hereby
certify that the foregoing Resolution was duly and regularly adopted by the City Council
of the City of Orange at a regular meeting thereof held on the day of
2020 by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
Pamela Coleman, City Clerk, City of Orange
Reso. No. 11229 3 MEB
Engineer's Repon
City of Orange
Landscape Maintenance District No.86-2
CITY OF ORANGE
PRELIMINARY ENGINEER'S REPORT
FOR TT E ANNUAL LEVY
ASSESSMENT LANDSCAPE MAINTENANCE
DISTRICT NO. 86-2
FTSCAL YEAR 2020-212020
ORPOA Y^
O M'
y `', ,9 6i'..41L 6,'1a..C
CpUHTy GP
LANDSCAPE MAINTENANCE DISTRICT NO. 8G-2
SANTIAGO HILLS
Intent Meeting: May 12, 2020
Public Hearing: June 9,2020
LMD 86-2 Prelinunuy ER FY 2020-21 Draft
1
Engineer's Report
City of Orange
Landscape Maintenance District No.86-2
AFFIDAVIT FOR THE ENGINEER'S REPORT
This Repon describes the City of Orange Landscape Maintenance District No. 86-2 and pmposed
changes or modifications related thereto including the improvemenu,budgets, parcels and
assessments to be levied for Fiscal Year 2020-2021,pursuant to the Cit s Resolution of Intention.
Reference is hereby made to the Orange County Assessor's maps for a detailed description of the
lines and dimensions of parceLs within the District. The undersigned respectfully submits the
enclosed Report as directed by the City Council.
Dated this day of 2020.
By:
Frank Sun
Assistant Public Works Director/ City Engineer
2
Engineer's Report
City of Orange
Landscape Nlauitenance Distria No.86-2
TABLE OF CONTENTS
AFFIDAVIT FOR THE ENGINEER'S REPORT.....................................................2
INTRODU CT I ON........................................................................................................4
PART I —PLANS AND SPECIFICATIONS .............................................................6
A. Description of the District...............................................................................................6
B. Improvements and Services.............................................................................................6
PART II—METHOD OF APPORTIONMENT..................................................... 10
A. General..............................................................................................................................10
B. Benefit Analysis................................................................................................................10
C. Assessment Methodology...............................................................................................12
PART III—DISTRICT BUDGET............................................................................14
PART IV—DISTRICT DIAGRAMS.........................................................................1G
PART V—ASSESSMENT ROLL .............................................................................18
3
Engineer's Repon
City of Orange
Landscape Maintenance District No.86-2
INTRODUCTION
Pursuant to the provisions of the Land.rcaping and Isgbting Act of 1972, being Part 2 of Divi.rion 15 of the
California Street.r and Higbmay.r Code, commencing ivith Section 22500 (hereafter referred to as the "1972
Act"), and in compliance with the substantive and procedural requirements of the California State
Con.rtitution Article.r XIIIC and XIIID (hereafter referred to as the "Califomia Constitution"), the City
Council of the City of Orange, County of Orange, State of California (hereafter referred to as
City"), in connection with the annual levy and collection of assessments of the special benefit
assessment district designated as:
Landscape Maintenance District No. 86-2
hereafter referred to as the "District"), which includes all lots and parcels of land that specially
benefit from the improvements within the District. This Engineer's Report (hereafter referred to as
Report") has been prepared in connection with the annual levy and collections of assessments for
said District pursuant to Chapter 1,Article 4 of the 1972 Act.
The City Council proposes to levy and collect annual assessments on the County tu rolls to provide
ongoing funding for the cosu and expenses required to service and maintain the landscaping
improvemenu originally installed in connection with the development of properties within the
District. The improvements to be provided by the District and the assessments described herein are
made pursuant to the 1972 Act.
This Report describes the District, the improvements, and the proposed assessments to be levied in
Fiscal Year 2020-2021 against properties in connection with the special benefits the properties will
receive from the maintenance and servicing of the District improvements. The annual assessments
to be levied on properties within the District will provide a funding source for the continued
operation and maintenance of local landscaping improvements installed in connection with the
development of properties within the District. The assessmenu described in this Report are based
on an estimate of the direct e cpenditures, incidental expenses, and fund balances that will be
necessary to maintain and service the improvements.
The word"parcel," for the purposes of this Report,refers to an individual property assigned its own
Assessor's Parcel Number (API by the Orange County Assessor's Office. The Orange County
Auditor/Controller uses Assessor's Parcel Number and specific Fund Numbers to identify
properties to be assessed on the tax mll for the special benefit assessments.
This Report has been prepared and presented to the City Council to address any proposed changes
to the District or improvements, if any, and the proposed budget and assessmenu for Fiscal Year
2020-2021. The City Council will conduct a noticed public hearing to consider public testimonies,
comments and written protests regarding the levy and collection of assessments for Fiscal Year
2020-2021. Upon conclusion of the public hearing, if majority protest does not e st the City
Council may approve this Report (as submitted or amende and levy the assessments for Fiscal
Year 2020-2021. In such case, the assessments for fiscal year 2020-2021 shall be submitted to the
Orange County Auditor/Controller for inclusion on the pmperty taa roll for each parcel. If the
proposed annual assessments for this District exceed the maximum assessment described herein (as
approved by the property owne), the new or increased assessment must be confumed through
another pmperty owner protest ballot proceeding before such an assessment may be imposed.
11iis Repon consists of five (5) parts:
4
Engineer's Repoit
City of Orange
Landscape Maintenance District No.86-2
Part I
Plans and Specifications: A description of the District boundaries and the improvements
associated with the District. The District is being formed as a single benefit zone encompassing all
properties within the temtory identified as Landscape and Maintenance District No 86-2.
Part II
The Method of A portionment: A discussion of benefits the improvements and services provide
to propenies within the District and the method of calculating each propeny's proportional special
benefit and annual assessment.
Part III
The District Budget: An estimate of the annual costs to operate, maintain and service the
landscaping and appurtenant facilities installed and constructed as part of the development of
propenies within the District. This budget includes an estunate of anticipated direct maintenance
costs and incidental expenses. The special benefit assessments are based on the overall operation
costs minus any costs that are considered general benefit. The proposed assessments for Fiscal Year
2020-2021, and each subsequent year shall be based on the estimated net annual cost of operating,
maintaining and servicing the improvements for that fiscal year as well as funds to be collected in
installmenu to perform maintenance activities that cannot be reasonably collected in a single fiscal
year's assessments.
Part IV
District Diagram: A Diagram showing the e cterior boundaries of the District is provided in this
Report and includes all parcels that will receive special benefits from the improvemenu.Reference is
hereby made to the Orange County Assessor's Parcel Maps for a detailed description of the lines
and dimensions of each lot and parcel of land within the District.
Part V
Assessment Roll: A listing of the proposed assessment amounu to be levied on Assessor's Parcel
within the District for Fiscal Year 2020-2021. The proposed assessment amount for each parcel is
based on the parcel's proportional special benefit as outlined in the method of apportionment.
5
Engineer's Repon
City of Orange
Landscape Maintenance District No.86-2
PART I - PLANS AND SPECIFICATIONS
A. Description of the District
The assessment district boundary is shown on a map entitled Assessment Diagram, Landscape
Maintenance District No. 86-2, City of Orange, which is on file with the City C1erk of the City of
Otange.A reduced scale copyof the Diagram can be found in Part IV of this document.
B. Improvements and Services
Improvements and Services Permitted Pursuant to the 1972 Act
As generallydefined bythe Landscaping and Lighting Act of 1972 and applicable to this District,the
improvemenu and associated assessmenu may include one or more of the following:
1) The installation or planting of landscaping;
2) The installation or construction of statuary, fountains, and other omamental structures and
facilities;
3) The installation or construction of any facilities which are appurtenant to any of the foregoing or
which are necessary or convenient for the maintenance or servicing thereof;
4) The installation of park or recreational improvements, including, but not limited to, all of the
following:
a) Land preparation, such as grading, leveling, cutting and filling, sod, landscaping, imgation
systems, sidewalks, and drainage.
b) Lights,playground equipment,play courts, and public restrooms.
5) The maintenance or servicing, of any of the foregoing including the fumishing of services and
materials for the ordinary and usual maintenance, operation, and servicing of any improvement
including but not limited to:
a) Repair, removal,or replacement of all or any part of any improvements;
b) Grading, clearing, removal of debris, the installation or construction of curbs, gutters, walls,
sidewalks,or paving, or water, irrigation,drainage,or electrical facilities;
c) Providing for the life, growth, health, and beauty of landscaping, including cultivation,
irrigation,trimnung,spraying,fertilizing,or treating for disease or injury;
c The removal of trimmings,rubbish,debris,and other solid waste;
e) The cleaning, sandblasting, and painting of walls and other improvements to remove or
cover graffiti;
fl Electric current or energy,gas, or other illuminating agent for any public lighting facilities or
for the lighting or operauon of any other improvements;
g) Water for the irrigation of any landscaping, the operation of any fountains, or the
maintenance of any other improvements.
6) Incidental expenses associated with the improvemenu including,but not limited to:
6
Engineer's Report
Ciry of Orange
Landscape Maintenance District No.86-2
a) The cost of preparation of the report, including plans, specifications, estimates, diagram,and
assessment;
b) Compensation payable to the County for collection of assessments;
c) Compensation of any engineer or attomey employed to render services;
Any other expenses incidental to the construction, installation, or maintenance and servicing
of the improvemenu;
Description of Planned Improvements
The landscape improvements are generally described as follows:
a) Parkway and Recreation Areas:
Newport Boulevard - approximately 18-foot wide zone (including the width of the
sidewalk) from the back of the curb to the propeny line, and comer cutoffs at
inte sections, on the east side from Chapman Avenue to 312 feet south of the centerline
of Skylark Place.
Chapman Avenue - approximately 18-foot wide zone (including the width of the
sidewalk) from the back of the curb to the property line, and corner cutoffs at
intersections,on south side from Newpon Boulevard to Jamboree Road.
Canyon View Avenue - approximately 30-foot wide zones (including the width of the
sidewalk) from the back of the curb to the property line, and corner cutoffs at
intersections,on both sides from Newport Boulevard to Jamboree Road.
White Oak Ridge - approximately 17-foot wide zones (including the width of the
sidewall from the back of the curb to the propeny line, and corner cutoffs at
intersections,on both sides from Newport Boulevard to Canyon View Avenue.
Trails End Lane - approximately 17-foot wide zone on the west side and approximately
28- to 32-foot wide zone on the east side (including the width of the sidewalks), both
zones from the back of the curb to the property line, and comer cutoffs at inte sections,
from White 4ak Ridge to Chapman Avenue.
Handy Creek Corridor - from the intersection of Chapman Avenue and Newport
Boulevard to White Oak Ridge and from White Oak Ridge to the intetsection of Canyon
View Avenue and Handy Creek Road (L,ot 20, a poxtion of Lot 11, and Lot D of Tract
No. 12417) including concrete walkways which also serve as emergency access ways.
Paseo - approximately 50-foot wide zone from the Park to White Oak Ridge and from
White Oak Ridge to Old Camp Road (L,ots A and B of Tract No. 12417) and
approximately 35-foot wide zone from the Paseo to White Oak Ridge (L.ot C of Tract
No. 12417) including surface and subsurface drainage facilities and concrete walkways
which aLso serve as emergency access ways.
Handy Creek Road - approximately 10-foot wide zone (including the width of the
sidewalks) on south side from the back of the curb to the propeny line form the end of
Handy Creek Corridor (Lot D, Tract No. 12417) near Canyon View Avenue to the
northerlyterminus of the street.
7
Engineer's Report
Ciry of Orange
Landscape Maintenance District No. 86-2
Fort Road - approximately 17-foot wide zones (including the width of the sidewalks)
from the back of the curb to the property line on south side from White Oak Ridge to
Jamboree Road.
Santiago Canyon Road - approximately is-foot wide zone (including the width of the
sidewall from back of curb to back of sidewalk on north and south sides from Newport
Boulevard to Jamboree Road.
Old Camp Road - approximately 4-foot wide zones from back of curb to property line
on both sides from Canyon View Avenue to the northerly terminus of the street.
Skylark Place - approximately 18-foot wide zones (including the width of the sidewallc)
from back of the curb to the property line on both sides from White Oak Ridge to
Newport Boulevard.
Jamboree Road - variable width zone (including the width of the bike trail-sidewall
from the back of the curb to the property line on the west side from Canyon View
Avenue to Chapman Avenue.
Additional Areas - areas adjacent to the 18-foot wide zones along Skylark Place,
Chapman Avenue, and Jamboree Road have been dedicated to the City with tracts
12672,12741,12711,15398 and PM 92-195. Such areas have been landscaped by the
developers and the sprinkler systems tied into the District's.
b) Medians
Chapman Avenue- 14-foot wide median from Newport Boulevard to Jamboree Road.
White Oak Ridge - 14-foot wide medians at Newport Boulevard and Canyon View
Avenue.
Trails End Lane- 14-foot wide median from White Oak Ridge to Chapman Avenue.
Jamboree Road - 24-foot wide median from southerly City limits to Santiago Canyon
Road.
Santiago Canyon Road- Variable width from Newport Boulevard to Jamboree Road.
Newport Boulevard - 22-foot wide median from Chapman Avenue to Santiago Canyon
Road.
c) The following items are excluded from the Maintenance District:
The 8 +/- acre park is excluded from this I.andscape Maintenance District.
Sidewalks along all Maintenance District streets are excluded from this Landscape
Maintenance District.
The equestrian trail along Canyon View Avenue is excluded from this Landscape
Maintenance District.
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Engineer's Report
City of Orange
Landscape Maintenance District No.86-2
c Maintenance shall include,but not be limited to:
repair, removal, replacement or installation of all or any part of any included
improvement such as storm drains and pedestrian walkways in the paseos;
providing for the life, growth, health, and beauty of landscaping, including cultivation,
irrigation,trinuiung,spraying,fertilizing,and treating for disease or injury; and
the removal of trinuiungs,rubbish,debris,and other solid waste.
The maintenance of the District improvements generally include,but are not limited to all materials,
equipment, utilities, labor and incidental expenses including administrative e enses for annual
operation of the District as well as the performance of occasional repairs,replacement and expanded
maintenance activities associated with those improvements. Detailed maps and descriptions of the
location and e ctent of the improvemenu to be maintained by the District are on file at the City and
by reference are made part of this Report.
The estimated annual cost to provide and maintain the improvements within the District shall be
allocated to each property in proportion to the special benefits received. The Method of
Apportionment descnbed in this Report utilizes commonly accepted assessment engineering practices
and has been established puisuant to the 1972 Act and the provisions of the Califomia Constitution.
9
Engineer's Report
City of Orange
Landscape Mauitenance District No.86-2
PART II - METHOD OF APPORTIONMENT
A. General
The 1972 Act pemuts the establishment of assessment districts by agencies for the purpose of
providing cettain public improvements, which include the construction, maintenance, and secvicing of
public landscaping and appurtenant facilities. The 1972 Act further requires that the cost of these
improvements be levied according to benefit rather than assessed value:
The net umount to be a.r.re.r.red upon land.r within an a.rse.crment diftrict may be apportioned by any formula or
methad bich fairly di.rtribute.r tbe net amount among all as.res.rable lot.r or iarcel.r in proportion to the e.rtimated
benefit.r to be received by each.ruch lot or parcelfrom the impmvement,r."
The method of apportionment described in this Report for allocation of special benefit assessments
utilizes commonly accepted engineering practices and have been established puxsuant to the 1972 Act
and the provisions of the California Constitution. The formula used for calculating assessments in this
District reflect the composition of the pa els, and the improvements and services provided, to fairly
apportion the costs based on benefit to each parceL
B. Benefit Analysis
Each of the proposed improvements, the associated cosu and assessments have been carefully
reviewed, identified and allocated based on special benefit pursuant to the provisions of the Califomia
Constitution and 1972 Act. The improvements provided by this District and for which properties will
be assessed have been identified as necessary, required and/or desired for the orderly development of
the residential propenies within the District to their full potentiaL As such, the ongoing operation,
servicing and maintenance of these improvements would be the financial obligation of those propenies.
Therefore, the improvements and the annual costs of ensuring the maintenance and operation of the
improvements ar a distinct and special benefit to the residential properties within the District.
Special Benefit
The method of apportionment (method of assessment) established herein is based on the premise that
each assessed parcel within the District receives special benefits from the improvements and the
desirability and securiry of those properties is enhanced by the presence of well-maintained landscaping
in close proximityto those properties.
The special benefits associated with the landscaping and open space improvements are specifically:
Enhanced desirability of propenies through association with the improvemenu.
Improved aesthetic appeal of properties providing a positive representation of the area and
propenies.
Enhanced adaptation of the urban envirorunent within the natural environment from adequate
green space and landscaping.
Environmental enhancement through improved erosion resistance,dust and debris control,and
fire prevention.
Increased sense of pride in owne hip of property within the District resulting from well-
maintained improvements associated with the properties.
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Engineer's Repon
City of Orange
Landscape Maintenance District No.86-2
Enl anced qualityof life through well-maintained green space and landscaped areas.
Reduced criminal activity and propeny-related crimes (especially vandalism) against propenies
in the District through well-maintained swroundings and amenities including abatement of
graffiti.
Enhanced environmental quality of the parcels by moderating temperatures, providing
o cygenation and attenuating noise.
The parkways and medians consist of landscaped areas along the edge of or within the middle of streets
and highways in the District. The District also has landscaped comdors extending through the
developed area, which pmvide access to Santiago H'ills Park The improvements in these areas consist
of trees,shrubs,ornamental vegetation,and appurtenant improvements.
The improvements e end throughout the development area and serve several purposes. The
landscaped parkways along the streets and highways enhance the public walkw ays throughout the
District and allow pedestrian access to the residents in the area. These parkways also provide passive
and active recreauonal uses as well as the aesthetic enhancement for the total cievelopment area.
Landscaped median islands also provide similar enhancements for the residents in the area.
The ]andscaped recreation/pedestrian comdors throughout the District provide for open space and
recreational uses,which connect to the park site throughout the development area.Besides contnbuting
to the active and passive recreauon use in the area, the comdo aesthetically enhance the area within
the District.
Maintenance of these public improvements primarily renders a people oriented benefit to the properties
within the boundaries of the District and, as such, relates to the mimber of persons in each dwelling
unit on each propeny.These benefits are direct and special to the propenies within the District.
The preceding special benefits all contribute to the overall esthetic value and desirability of each of the
assessed parcels within the District and thereby provide a special enhancement to these properties.
Furthermore, it has been determined that the lack of funding to properly service and maintain the
improvements would likely have a clirect negative impact on the properties within the District.
General Benefit
In reviewing the District impmvements,the proximity of those improvements to both propenies within
the District and those outside the District as well as the reasons for installing and constructing such
improvements, it is evident that the improvements are solely the result of developing properties within
the District and the ongoing maintenance and operation of these improvements will directly affect the
properties within the District. Although the improvements are visible to the public at large, the
construction and installauon of these unprovements were necessary for the development of properties
within the District and are not required nor necessarily desired by any propenies or developments
outside the District boundary and any public access or use of the improvements by others is incidentaL
Therefore, it has been detemvned that the improvements and the ongoing maintenance, servicing and
operation of those improvements provide no measurable general benefit to pmperties outside the
District or to the public at large,but clearly provide distinct and special benefits to properties within the
District.
11
Engineer's Report
Ciry of Orange
Landscape Maintenance District No.86-2
C. Assessment Methodology
The benefit formula used to determine the assessment obligation for each par el should be based upon
both the improvements that benefit the parcels as well as the use of each propertyas compa d to other
parcels that benefit from those specific improvements. The method of apportionment established for
most benefit assessment districts utilizes a weighted method of apportionment known as an
Equivalent Benefit Unit (EBL methodology The Equivalent Benefit Unit method of apportionment
uses the single-family home site as the basic unit of assessment. A single-family residential property
equals one Equivalent Benefit Unit ("EBV'). Every other]and use is converted to EBUs based on an
assessment formula that equates the propeny's specific development status, type of development (land
use),and size of the property,as compared to a single-family home site.
The EBU method of apportioning benefit is typically seen as the most appropriate and equitable
assessment methodology for districts formed under the 1972 Act,as the benefit to each par el from the
improvements are apportioned as a function of land use type,size and development.
EBU Application by Land Use:
Single-Family Residential— This land use is defined as a fully subdivided residential home site with
or without a structure.This land use is assessed 1.0 EBU per lot or par eL Tlvs is the base value that the
other land use types are compared and weighted against(i.e.Equivalent Benefit Unit or EBL.
Multi-Family Residential— Tfvs land use is defined as a fully subdivided residential par el that has
more than one residential unit developed on the propeny. This land use is assessed 0.6 EBU per
dwelling unit
Mixed Use Property — This land use is defined as propeny developed for either comme ial or
industrial use.This land use type is assessed at 11.0 EBUs per gross acre.
Exempt Parcels — This land use identifies properties that are not assessed and are assigned 0.0 EBU.
This land use classification may include, but is not limited,to lots or pa els identified as public streets
and other roadways (typically not assigned an APN by the Count}; dedicated public easements, open
space areas and right-of-ways including greenbelts and parkways; utility right-of-ways; common areas,
sliver par els and bifurcated lots or any other property that cannot be developed; park properties and
other publicly owned properties that are part of the District improvemenu or that ha e little or no
improvement value. These types of par els are considered to receive little or no benefit from the
improvements and are therefore exempted from assessment.
Lots 9, 10, 11, 15, and 19 of Tract No. 12417 have been assigned 0.0 EBU because they have been
excluded from the District. The cost of maintaining the landscape improvements on these publicly
owned pa els is not paid by the District but rather from the general fund of the public agency owning
the parceL Therefore,these publicly owned par els do not receive any special benefit from the District.
The following table provides a listing of land use types, land use code designations, the Equivalent
Benefit Unit facwr applied to that land use type, and the multiplying factor used to calculate each
parcel's individual EBU.
12
Engineer's Report
City of Orange
Landscape Maintenance District No.86-2
Land Use Codes and Equivalent Benefit Units
Property Type Equivalent Benefit Multiplier
Unit
Single-family Residential 1.000 Unit/Lot/Parcel
Multi-family Residential 0.600 Units/Dwelling Units
Mixed Use 11.000 Acreage
Exempt 0.000 Parcel
The benefit formula applied to parcels within the District is based on the preceding Equivalent
Benefit Unit (EBi table. Each parcel's EBU correlates the parcel's special benefit received as
compared to the other parcels benefiting from the improvemenu.
The following formula is used to calculate each parcel's EBU(proportional benefit).
Parcel Type EBU x Multiplier(Acres or Unit) = Parcel's EBU
The total number of Equivalent Benefit Units (EBUs) is the sum of all individual EBUs applied to
parcels that receive a special benefit from the improvement. An assessment amount per EBU(Rate)
for each improvement is established by taking the total cost of the improvement and dividing that
amount by the total number of EBUs of parcels benefiting from the improvement. This Rate is then
applied back to each pa el's individual EBU to determine the parcel's proportionate benefit and
assessment obligation for that improvement.
The Maximum allowable assessment rate of $369.44 EBU (single family) generates an assessment
total of$533,650.77.
Total Balance to Levy/Total EBU=Assessment Rate per EBU
Assessment Rate per EBU x Parcel's EBU = Parcel's Assessment
13
Engineer's Repon
Ciry of Orange
Landscape Maintenance District No.86-2
PART III - DISTRICT BUDGET
The following budget outlines the estimated costs to maintain the improvements for 2020-2021.
ANNUAL LEVY OF ASSESSMENT
LANDSCAPE MAINTENANCE DISTRICT NO. 86-2
City of Orange
ESTIMATED COSTS
OPERATION&MAINTENANCE FUND BALANCE FROM PRIOR YEARS
Estimated Fund Balance (Includes 15-1 & 86-2) as of March 2020 586,207
The estimated budget necessary for the 2020-2021 Fiscal Year for the District is as follows:
BUDGET ITEM COST
ANNUAL MAINTENANCE
Landscaping 391,321
Tree Trimming 165,000
Electrical Maintenance 35,000
Misc. Contract Services 10,000
Repair/Maintenance Services 47,051
Supplies 8,500
Other Professional Services 1,000
Telephone 1,000
Electricity 20,000
Water 168,000
Salaries & Benefits 45,119
City Administrative Services 25,424
Capital Replacement/Dedicated Reserves 500,000
TOTAL EST.LANDSCAPE MAINTENANCE EXPENTITURES 1,417,41b
ESTIMATED REVENUE
Landscape Maintenance District No. 86-2 533,651
Rancho Santiago Community College District 25,287
Proposed Benefit Assessment FY 2019/20(LMD 15-1)
See LMD 15-1 Engineer's Report for specifics) 341,358
CPI Adjustment(Current Year 0%) 0
Unused CPI Adjustment(Carry over from prior years)0
TOTAL ESTIMATED REVENUE 900,296
14
Engineer's Report
Ciry of Orange
Landscape Maintenance District No.86-2
RESERVE FUNDS USED TO SUPPLEMENT EXPENDITURES 1 517,119)
Thie Budget Estimate is for the purpose of establishing an Annual
Asseasment. It may vary from the adopted City Budget. All aesesamenta
collected by the Diatrict may only be uaed for Dietrict expenditurea
regazdless of the Budget Eetimate.
BALANCE TO LEVY 633,6b1
Notes to Estimate of Costs:
1. Since e enditures in FY21 are anticipated to exceed revenues,the fund balance will be used to
offset additional expenditures. In future years,the City will continue to work with District residents
on developing a renovation plan that is both fiscally and environmentally sustainable.
15
Engineer's Repon
City of Orange
Landscape Maintenance District No.86-2
PART IV - DISTRICT DIAGRAMS
The parcels within the Landscape Maintenance District No 86-2 consist of all lou, parcels and
subdivisions of land located in the planned residential development lmown as Santiago Hills.
The following diagram incorporates all parcels within the District, as the same existed at the time
this Report was prepared. The combination of this map and the Assessment Roll contained in this
Report constitute the Assessment Diagram for the Landscape and Maintenance District No. 86-2.
16
Engineer's Report
City of Orange
Landscape Mauitenance Distria No. 86-2
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LMD 86-2 SANTIAGO HILLS I
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Landscaue
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1 /
Engineer's Repon
Ciry of Orange
Landscape Mauitenance District No.86-2
PART V - ASSESSMENT ROLL
Parcel identification for each lot or parcel within the District is based on available parcel maps and
property data from the Orange County Assessor's Office, as they existed at the time this Engineer's
Report was prepared and the City Council adopted the Resolution of Intention. A listing of the lots
and parcels to be assessed within this District along with the assessment amounu is provided herein.
If any parcel submitted for collection is identified by the County Auditor/Controller to be an invalid
parcel number for the fiscal year, a corrected parcel number and/or new parcel numbers will be
identified and resubmitted to the County Auditor/Contmller. The assessment amount to be levied
and collected for the resubmitted parcel or parcels shall be based on the method of apportionment
and assessment rate described in this Report as approved by the City Council. Therefore, if a single
parcel is subdivided to multiple parcels, the assessment amount applied to each of the new parcels
shall be recalculated and applied according to the approved method of apportionment and
assessment rate rather than a proportionate share of the original assessment.
The following is a list of the parcels and proposed assessment amounts for Fiscal Year 2020-2021
for each of the parcels within the District as determined by the assessment rates and method of
apponionment described herein:
18
Engineer's Repon
City of Orange
Landscape Maintenance District No. 15-1
CITY OF ORANGE
PRELIMINARY ENGINEER'S REPORT
FOR'1"HE ANNUAL LEVY
ASSESSMENT LANDSCAPE MAINTENANC
DISTRICT NO. 15-1
FTSCAL YEAR 2020-2021
oF
GpRPORqTFO l
Vi
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q!RIL 6,0'
Gjpu GP
LANDSCAPE MAINTENANCE DISTRICT NO. 15-1
SANTIAGO HILLS
Intent Meeting: May 12,2020
Public Hearing: June 9,2020
LMD 15-1 Preliit axy ER FI'2020-21 Draft
1
Engineer's Reporz
City of Orange
Landscape Maintenance District No. 15-1
2
Engineer's Repon
City of Orange
Landscape Maintenance District No. 15-1
AFFIDAVIT FOR THE ENGINEER'S REPORT
This Report describes the Cityof Orange Landscape Maintenance District No. 15-1 and pmposed
changes or modifications related thereto including the improvements,budgets, parcels and
assessments to be levied for Fiscal Year 2020-2021,pursuant to the Cit}s Resolution of Intention.
Reference is herebymade to the Orange CountyAssessor's maps for a detailed description of the
lines and dimensions of parcels within the District. The undersigned respectfully submiu the
enclosed Report as directed bythe City Council.
Dated this day of 2020.
By:
Frank Sun
Assistant Public Works Director/ City Engineer
3
Engineer's Report
City of Orange
Landscape Maintenance District No. 15-1
TABLE OF CONTENTS
AFFIDAVIT FOR THE ENGINEER'S REPORT.....................................................3
INTRODUCTI ON........................................................................................................5
Overy iew........................................................................................................................................5
District's Facilities.........................................................................................................................5
AssessmentBackground..............................................................................................................5
PLANS & SPECIFICATIONS......................................................................................6
FISCAL YEAR 2019-20 ESTIMATE OF COST AND BUDGET................................9
Budget for Fiscal Year 2019-20..................................................................................................9
METHOD OF APPORTIONMENT.........................................................................10
Methodof Apportionment........................................................................................................10
Discussionof Benefit.................................................................................................................11
BenefitFactors ............................................................................................................................12
BenefitFinding............................................................................................................................15
Zonesof Benefit.........................................................................................................................18
Methodof Assessment...............................................................................................................19
ResidentialProperties.................................................................................................................20
CommercialProperties...............................................................................................................21
Vacant/Undeveloped Properties..............................................................................................22
OtherProperties..........................................................................................................................22
AnnualCost Inde ung................................................................................................................23
APPeals of Assessmenu Levied to Pro e 23P '...........................................................................
Assessment Funds Must Be Expended Within the District Area........................................23
ASSESSMENT.............................................................................................................25
ASSESSMENTDIAGRAM.........................................................................................2G
ASSESSMENTROLL.................................................................................................28
4
Engineer's Report
City of Orange
Landscape Mauitenance District No. 15-1
INTRODUCTION
Overview
The City of Orange (the "Cit}') services and maintains perimeter and median landscaping, interior
walkways and paseos, and other improvements ("Improvements") in the Santiago Hills
neighborhoods in the eastern part of the Ciry. This Engineer's Report ("Report") was prepared to
establish the budget for the Improvements (as described below) that will be funded by the new
2020-2021 assessments, if approved, and other revenue, to detern ine the general and special
benefits received from the Improvements by propeny within the Improvement District ("District"),
and to deternune the method of assessment apportionment to lots and parcels. This Report and the
assessments have been made putsuant to the Landscaping and Lighting Act of 1972, Part 2 of
Division 15 of the Califomia Streets and Highways Code (the "Act") and Article XIIID of the
California Constitution(the "Article").
Landscape Maintenance District (LMD) No. 15-1 was formed in 2015. This assessment district is
identical to the e sting Landscape Maintenance District No. 86-2 in its geographic boundaries,
parcels to be assessed, Improvemenu to be serviced, maintained, or repaired and budgeted cost
centers. The assessments collected, if approved,will be in addition to those collected for Landscape
Maintenance District 86-2.
District's Facilities
The Cit}s landscape facilities to be funded by assessments within this District are located in the
Santiago Hills neighborhoods of the City. The Improvements generally include entrance signs,
traffic islands and medians, parkways, recreation areas, paseos, lighting, and the infrastructure
required to support these Improvements.
Assessment Background
The Ciry fonned Landscape Maintenance District No. 86-2 in 1987 to service and maintain the
specific landscape facilities and improvements relevant to this report. Revenues from that district
remain relatively flat, there is not an inflation adjustment provision, while the costs to maintain and
service these facilities and improvements have risen steadily. In 2007 the City began to decrease
service levels in an effort to contain costs within available revenues. 'The service levels continued to
decrease to offset the effecu of rising utilities, labor and materials costs until the creation of LMD
No. 15-1.
In order to restore service levels and make needed repairs and improvements to the District's
facilities,the LMD No. 15-1 that exactlyoverlaid the e cisting assessment district,was formed.
5
Engineer's Report
City of Orange
Landscape Maintenance District No. 15-1
PLANS & SPECIFICATIONS
The City maintains landscaping and other improvements in locations within the proposed
Assessment District's boundaries. The work and impmvemenu proposed to be undertaken by the
Landscape Maintenance District No. 15-1 and the cost thereof paid from the levy of the annual
Assessment provide special benefit to Assessor Parcels within the District as defined in the Method
of Assessment herein. In addition to the definitions provided by the Landscaping and Lighting Act
of 1972, (the "Act") the work and improvements are generally described as follows:
Entrance Sign
The entrance signs with landscape improvements to be maintained are to be located at the following
locations within the District:
Chapman Avenue at Newport Boulevard(southeast comer)
Newpon Boulevard at Canyon View Avenue (northeast comer)
Parkways and Recreation Areas
The landscaped parkways and recreation areas to be maintained by the District are located as
follows:
Newport Boulevard- approximately 18-foot wide zone (including the width of the sidewall
from the back of the curb to the property line, and comer cutoffs at inte sections, on the
east side from Santiago Canyon Road to 312 feet south of the centerline of Skylark Place.
Chapman Avenue - approximately 18-foot wide zone (including the width of the sidewall
from the back of the curb to the property line, and corner cutoffs at inter ections, on both
sides from Newport Boulevard to Jamboree Road.
Canyon View Avenue - approximately 30-foot wide zone (including the width of the
sidewall from the back of the curb to the propetty line, and comer cutoffs at intersections,
on both sides from Newport Boulevard to Jamboree Road.
White Oak Ridge - approximately 17-foot wide zone (including the width of the sidewall
from the back of the curb to the property line, and corner cutoffs at inte sections, on both
sides from Newport Boulevard to Canyon View Avenue.
Trails End Lane - approximately 17-foot wide zone on the west side and approXimately 28-
to 32-foot wide zone on the east side (including the width of the sidewall,both zones from
the back of the curb to the property line, and comer cutoffs at intersections, from White
Oak Ridge to Chapman Avenue.
Handy Creek Corridor- from the inteisection of Chapman Avenue and Newpon Boulevard
to White 4ak Ridge, and from White Oak Ridge to the intersection of Canyon View Avenue
and Aspen Street(I,ot 20,a portion of Lot 11, and Lot D of Tract 12417) including concrete
wallcways which also serve as emergency access ways.
Paseo - approximately 50-foot wide zone from Santiago Hills Park to White Oak Ridge and
from White Oak Ridge to Old Camp Road (L.ots A and B of tract No. 12417) and
approximately 35-foot wide zone from the Paseo to White Oak Ridge (L,ot C of Tract No.
12417) including surface and subsurface drainage facilities and concrete walkways which also
serve as emergency access ways.
Aspen Street - approximately 10-foot wide zone (including the width of the sidewalk) on
south side from the back of the curb to the property line from the end of Handy Creek
6
Engineer's Report
City of Orange
Landscape Mauitenance Distria No. 15-1
Comdor (I.ot D, Tract No. 12417) near Canyon View Avenue to the nor[herly terminus of
the street.
Fort Road- approximately 17-foot wide zone (including the width of the sidewall from the
back of the curb to the property line on south side from White Oak Ridge to Jamboree
Road.
Santiago Canyon Road - approximately 15-foot wide zone (including the width of the
sidewalk) from the back of the curb to the property line on north and south sides from
Newport Boulevard to Jamboree Road.
Old Camp Road - approximately 4-foot wide zone from the back of the curb to the
property line on both sides from Canyon View Avenue to northerly terminus of the street.
Skylark Place - approximately 18-foot wide zone (including the width of the sidewalk) from
the back of the curb to the propeny line on both sides from White Oak Ridge to Newport
Boulevard.
Jamboree Road- variable width zone (including width of the bike trail-sidewall from back
of the curb to the property line on the west side from Canyon View Avenue to Santiago
Canyon Road.
Additional Areas - areas adjacent to the 18-foot wide zones along Skylark Place, Chapman
Avenue, and Jamboree Road have been dedicated to the City with tracts 12672, 12741,
12711, 15398 and PM 92-195. Such areas have been landscaped by the develope and the
sprinkler systems tied to the District's.
Traffic Islands and Medians
The landscaped islands and medians to be maintained by the District are located as follows:
Chapman Avenue- 14-foot wide median from Newport Boulevard to Jamboree Road.
White Oak Ridge- 14-foot wide medians at Newport Boulevard and Canyon View Avenue.
Trails End Lane - 14-foot wide median from White Oak Ridge to Chapman Avenue.
Jamboree Road- 24-foot wide median from southerly City limits to Santiago Canyon road.
Santiago Canyon Road- Variable width from Newport Boulevard to Jamboree Road.
Newport Boulevard - 22-foot wide median from Chapman Avenue to Santiago Canyon
Road.
Excluded Improvements
The following items are excluded from the District:
The 8+/- acre park is excluded from this District
The Cit}s public safety facility on East Fort Road is excluded from this District
Chapman Hills ElementarySchool is excluded fromthis District
Santiago Canyon College is excluded from this District (Note that while some public
improvements along the College fmntage are maintained along with District Improvements,
the College pays directly into the District's fund to compensate for that worl
Sidewalks along all streets within the District are excluded
The Equestrian trail along Canyon View Avenue is excluded from this District
Definitions
Installation, maintenance and servicing of Improvements, may include, but are not limited to, turf
and play areas, landscaping, ground cover, shrubs and trees, irrigation systems, sidewalks, parking
7
Engineer's Repon
City of Orange
Landscape Mauitenance District No. 15-1
lots, drainage systems, lighting, fencing, entry monuments, recreational facilities, security patrols to
protect the Improvements,graffiti removal and repainting,and labor,materials,supplies,utilities and
equipment, as applicable,at each of the locations owned,operated or maintained bythe District.
As applied herein, "Installation" means the construction of Improvemenu, including, but not
limited to, land preparation (such as grading, leveling,cutting and filling), sod, landscaping, imgation
systems,walkways and drainage,lights,and recreational facilities.
Maintenance" means the fumishing of services and materials for the ordinary and usual
maintenance,operation and servicing of any Improvement, including repair,removal or replacement
of all or any part of any Improvement; providing for the life, growth, health, and beauty of
landscaping, including cultivation, irrigation,trinuning, spraying, fertilizing, or treating for disease or
injury; the removal of tnmmings, rubbish, debris, and other solid waste, and the cleaning,
sandblasting,and painting of walls and other Improvements to remove or cover graffiti.
Servicing" means the fumishing of electric current, or eneigy, gas or other illuminating agent for
any public lighting facilities or for the lighting or operation of any other Improvements;or water for
the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other
Improvements.
Incidental e penses include all of the following: (a) The costs of preparation of the report, including
plans, specifications, estimates, diagram, and Assessment; (b) the costs of printing, advertising, and
the giving of published, posted, and mailed notices; (c) compensation payable to the County for
collection of Assessments; (c compensation of any engineer or attomey employed to render
services in proceedings pursuant to this parr, (e) any other expenses incidental to the construction,
installation, or maintenance and servicing of the Improvements; ( any expenses incidental to the
issuance of bonds or notes pursuant to Streets & Highways Code Section 22662.5; and (g) costs
associated with any elections held for the approval of a new or increased assessment (Streets &
Highways Code §22526).
Modifications to the District structure could include, but are not limited to, substantial changes or
expansion of the Improvements provided, substantial changes in the service provided, modifications
or restructuring of the District including annexation or detachment of specific parcels, revisions in
the method of apponionment,or proposed new or increased assessments.
The Assessment proceeds will be exclusively used for Improvements within the District plus
incidental expenses.
a
Engineer's Repon
Ciry of Orange
Landscape Maintenance District No. 15-1
FISCAL YEAR 2020-21 ESTIMATE OF COST AND BUDGET
Budget for Fiscal Year 2020-21
The following budget shows the cost of the Improvements that would be funded by the District in
Fiscal Year 2020-21. This table shows the total combined expenditures associated with the
Improvements for both Landscape Maintenance Districts (No. 15-1 and No. 86-2). Accordingly,
revenues from both Districts are also shown.
OPERATION & MAINTENANCE FUND BALANCE FROM PRIOR YEARS
Estimated Fund Balance (Includes 15-1 & 86-2) as of March 2020 586,207
The estimated budget necessary for the 2020-2021 Fiscal Year for the District is as follows:
BUDGET ITEM COST
ANNUAL MAINTENANCE
Landscaping 391,321
Tree Trimming 165,000
Electrical Maintenance 35,000
Misc. Contract Services 10,000
Repair/Maintenance Services 47,051
Supplies 8,500
Other Professional Services 1,000
Telephone 1,000
Electricity 20,000
Water 168,000
Salaries &Benefits 45,119
City Administrative Services 25,424
Capital Replacement/Dedicated Reserves 500,000
TOTAL EST.LANDSCAPE MAINTENANCE EXPENDITURES 1,417,415
ESTIMATED REVENUE
Landscape Maintenance District No. 86-2 533,651
See LMD 86-2 Engineer's Report for specifics)
Rancho Santiago Community College District 25,287
Proposed Benefit Assessment F'Y 2019/20 (LMD 15-1)
See LMD 15-1 Engineer's Report for specifics) 341,358
CPI Adjustment (Current Year 0%)4 0
Unused CPI Adjustment(Carry over from prior years)0
TOTAL ESTIMATED REVENUE 900,296
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Engineer's Report
City of Orange
Landscape Maintenance District No. 15-1
RESERVE FUNDS USED TO SUPPLEMENT EXPENDITURES 5 517,119)
District Expenditures will be adjusted to match the maximum allowable
aeaessment.
This Budget Estimate ia for the purpose of establiahing an Annual
Aesesament. It may vary from the adopted City Budget. All aasessmenta
collected by the District may only be used for District expenditures
regardleas of the Budget Estimate.
BALANCE TO LEVY 341,358
Notes to Estimate of Costs:
1. The Act requires that proceeds from the Assessments must be deposited into a special fund that
has been set up for the revenues and expenditures of the District. Moreover, funds raised by the
Assessment shall be used only for the purposes stated within this Report. Any balance rematnlna at
the end of the Fiscal Year,June 30, must be camed over to the next Fiscal Year. The District may
also establish a dedicated reserve fund for contingencies and special projects as well as a dedicated
capital improvement fund for accumulating funds for larger capital improvement projects or capital
renovation needs. Any remaining balance would either be placed in the dedicated reserve fund, the
capital improvement fund,or would be used to reduce future years'Assessments.
2. The rate shown here is for a single family home or its equivalent. For the definition of the term
SFE and rates for other types of property, see the section titled, "Method of Assessment
Apportionment" and the sections following it in this report.
3. The total cost of the services and Improvements is the total assessment amount of$341,358 plus
the value of the general benefit contributions from the City described in the section titled, "Method
of Assessment Apponionment."
4. The Assessment allows for an annual adjustment tied to the Consumer Price Index (the "Q'I"),
as detailed in the section titled "Method of Apportionment — Annual Cost Indexing." For Fiscal
Year 2020-2021, the Q'I is 3.0% for the Los Angeles-Long Beach-Anaheim area as of December
2019. Due to the remaining fund balance from Fiscal Year 2019-2020, the Community Services
Department staff recommends setting the Q'I adjustment at 0% for Fiscal Year 2020-2021.
5. Since expenditures in FY21 are anticipated to exceed revenues, the fund balance will be used to
offset additional expenditures. In future years, the City will work with the District to evaluate
options to ensure fiscal sustainabiliry.
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Engineer's Repon
City of Orange
Landscape Mauitenance District No. 15-1
METHOD OF APPORTIONMENT
Method of Apportionment
This section of the Engineer's Report explains the benefits to be derived from the Improvemenu
and the methodology used to apportion the total assessment to properties within the District.
The method used for apportioning the Assessment is based upon the relative special benefiu to be
derived by the properties in the District over and above general benefits conferred on real property
or to the public at large. The Assessment is apportioned to lots and parcels in proportion to the
relative special benefit from the Improvements. The apportionment of special benefit is a two-step
process: the fixst step is to identify the types of special benefit arising from the Improvements and
the second step is to allocate the Assessments to property based on the estimated relative special
benefit for each type of propeny.
This section of the Engineer's report includes a discussion of the benefits to be provided by the
proposed Improvements and the method of apportionment of assessments within the District. The
formula below identifies the final level of service as the sum of the baseline level of service (without
this proposed Assessment) and the enhanced level of service to be funded by the proposed
Assessment.
Final Level Baseline Level Enhanced Level
of Service of Service of Service
Discussion of Benefit
In sununary, the Assessments can only be levied based on the special benefit to property. This
benefit is received by property over and above any general benefits. With reference to the
requirements for assessments,Section 22573 of the Landscaping and Lighting Act of 1972 states:
The net amounl to be a.r.res.red uf on landr vithin an as.re.crment di.rtrict may be apportianed by any formula or
method wbich fairly di.rtribute the net amount among all ar.ref.rable lot- or parcel in proportion to the e.rtimated
benefit.r to be received by each,ruch lat ar parcelfrom the improvement.r."
Proposition 218, as codified in Article XIIID of the California Constitution, has confirmed that
assessments must be based on the special benefit to property and that the value of the special
benefits must be equal to or exceed the cost of the assessment:
No as.re,r.rment.rball be impo.red an any parcel mhich exceeds the rea.ronable cost of the proportional eczal benefit
conferred on thatparcel."
The following benefit categories sununarize the types of special benefit to residential, commercial,
industrial and other lots and parcels resulting from the Improvements to be provided with the
assessment proceeds. These types of special benefits are sununarized as follows:
A Proximiry to Improved Landscaped Areas and Other Public Improvements within the
District.
B. Access to Improved landscaped areas and Other Public Improvements within the District.
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Engineer's Report
City of Orange
Landscape Maintenance District No. 15-1
G Improved Views within the District.
D. Eatension of a property's outdoor areas and green spaces for propenies within close
pmximityto the Improvements.
E. Creation of individual lots for residential and commercial use that, in absence of the
Assessments,would not have been created.
In this case,the recent Silicon Tlalley Taaf ayer.rA.ccociation, Inc. u Santa Clara County Open Space uthority
SVTA) decision in 2008 provides enhanced clarity to the definitions of special benefits to
properties from similar improvements in three distinct areas:
Proximity
Expanded or improved access
Views
The SVTA decision also clarifies that a special benefit is a service or improvement that provides a
direct advantage to a parcel and that indirect or derivative advantages resulting from the overall
public benefits from a service or improvement are general benefits. The ST TA decision also
provides specific guidance that Improvements are a direct advantage and special benefit to property
that is proximate to a facilitythat is improved by an assessment:
The cbaracteritiation of a benefit may depend on hether the parcel receives a direct advantage from tbe
improvement (e.g. proximzty to a park) ar receive.r an indirect, derivative advantage re.rulting from tbe overall
public benefzt.r of tbe improvement(e.g.general enbancement of the di.rtrict.r j roj erty value.r).
Proximity, improved access and views, in addition to the other special benefits listed herein fwther
strengthen the basis of these Assessments.
Moreover, the Dabms u Downtomn Pomona Prop. ' Bur. Improvement Di.rt. (Dahm.r) decision in 2009
further clarified that certain services and Improvemenu funded by assessments, that are over and
above what otherwise would be provided and that other propeny in general and the public do not
share or receive are 100% special benefit.The assessment-funded services upheld by Dahm.r included
streetscape maintenance and securiry services.
Benefit Factors
The special benefits from the Improvements are further detailed below:
Proximiry to Improved Landscaped Areas within the District
The boundaries of the District were developed in conjunction and concturent with the planning and
design of the subdivisions and Improvements, and thus have been carefully dxawn to only include
the properties in the City of Orange that are proxunate to the Improvemenu and that would
materially benefit from the Improvements. In other words,the District has been narrowly drawn to
include the properties that receive special benefiu from the Improvements. Therefore, property in
the District enjoys unique and valuable proximity to the Improvements that the public at large and
propeny outside the District do not share.
In the absence of the Assessmenu, the Improvements would not be provided and the public
improvements funded in the District would be degraded due to insufficient funding for
maintenance, upkeep and repair. Therefore, the Assessments provide Improvements that are over
and above what otherwise would be provided. Improvements that are over and above what
otherwise would be provided do not by themselves translate into special benefits but when
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Engineer's Report
Ciry of Orange
Landscape Maintenance District No. 15-1
combined with the unique proximity and access enjoyed by parcels in the District, they provide a
direct advantage and special benefit to property in the District.
Access to Improved Landscaped Areas within the District
Since the parcels in the District are nearly the only parcels that enjoy close access to the
Improvements,they directly benefit from the unique close access to improved landscaping areas and
other public improvements that are provided by the Assessments. This is a direct advantage and
special benefit to propertyin the District.
Improved Views within the Assessment Districts
The City, by maintaining pemianent public improvements funded by the Assessmenu in the
District, provides improved views to properties in the District. The properties in the District enjoy
close and unique proximity, access and views of the specific Improvements funded in the District;
therefore, the improved and protected views provided by the Assessments are another direct and
tangible advantage that is uniquely conferred upon propeny in the District.
Extension of a Property's Outdoor Areas and Green Spaces for Properties within Close
Proximity to the Improvements
In large part because it is cost prohibitive to provide large open land areas on property in the
District, the residential, commercial and other benefiting properties in the District do not have large
outdoor areas and green spaces. The Improvements within the District provide additional outdoor
areas that serve as an effective extension of the land area for proximate properties because the
Improvements are uniquely proximate and accessible to property in close proXimity to the
Improvements. The Improvements, therefore, provide an imponant, valuable and desirable
e ension of usable land area for the direct advantage and special benefit of properties in the District
because such properties have uniquely good and close proximity to the Improvements.
Creation of Individual Lots for Residential and Commercial Use that, in Absence of the
Assessments,Would Not Have Been Created
In most of the District, the original owner/developer(s) of the property within the District agreed
unanimously to the Assessments. The Assessments provide the necessary funding for public
improvemenu that were approved as a condition of development and subdivision appmval.
Therefore, such Assessments allowed the original propeny to be subdivided and for development of
the parcels to occur. As parcels were sold, new owners were informed of the Assessments through
the title reports, and in some cases, through Department of Real Estate "White Paper" reports that
the parcels were subject to assessment. Purchase of property was also an "agreement" to pay the
Assessment. Therefore, in the absence of the Assessments, the lots within most of the District
would not have been created. These parcels, and the Improvements that were constructed on the
parcels,receive direct advantage and special benefit from the Assessments.
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Ciry of Orange
Landscape Maintenance District No. 15-1
Summary of Relative Weight of Benefit Factors
A solid argument could be made that the Creation of Individual L.ots benefit comprises 100% of the
benefit because the Improvements were incoiporated into the original planning and design of the
subdivision, and thus were deemed to be necessary and required for the development of the lot.
Without those Improvements and associated benefit, the lots would not have been created in the
fust place. Nevertheless,four other definitive benefits accruing to the parcels within the District are
identified, and an allowance should be made within the overall relative importance of benefits. The
table below illustrates the relative benefit level of the five identified benefits used in this Report.
Benefit Factor Relative Weight
Proximity 10%
Access 10%
Views 10%
Outdoor Area or Green Space Extension 10%
Creation of Individual Lots for Development 60'
Total Benefit 100%
General Versus Special Benefit
Article XIIIC of the California Constitution requires any local agency proposing to increase or
impose a benefit assessment to "separate the general benefits from the special benefits conferred on
a parcel." The rationale for separating special and general benefits is to ensure that property owners
subject to the benefit assessment are not paying for general benefits.An assessment can fund special
benefits but cannot fund general benefits. Accordingly, a separate estimate of the special and
general benefit is given in this section.
In other words:
Total General eaal
Benefit — Benefit + Benefit
There is no widely-accepted or statutory formula for general benefit. General benefits are benefits
from improvements or services that are not special in nature, are not "particular and distinct" and
are not "over and above" benefits received by other propenies. SVTA provides some clarification
by indicating that general benefits provide "an indirect,derivative advantage" and are not necessarily
proximate to the improvemenu.
In this Report,the general benefit is liberally estimated and described,and then budgeted so that it is
funded by sources other than the Assessment.
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Engineer's Repon
City of Orange
Landscape Mauitenance District No. 15-1
The starting point for evaluating general and special benefiu is the cwrent, baseline level of service.
The Assessment will fund Improvements "over and above" this general, baseline level and the
general benefits estimated in this section are over and above the baseline.
A formula to estimate the general benefit is listed below:
Benefit to Real
Benefit to Real
Pro er
Property Inside Benefit
General p ' the Assessment to the
Outside the
District that is PublicBenefitAssessment
District
Indirect and at Large
Derivative
Special benefit, on the other hand, is defined in the state constitution as "a particular and distinct
benefit over and above general benefiu conferred on real property located in the district or to the
public at large." The Sti I'A decision indicates that a special benefit is conferred to a property if it
receives a direct advantage from the improvement (e.g., proximiry to a parl." In these
Assessments, as noted, properties in the District have close and unique proximity, views and access
to the Improvements and uniquely improved desirability from the Improvements and other
propenies and the public at large do not receive significant benefits because they do not have
proximity, access or views of the Improvements. Therefore, the overwhelming proportion of the
benefiu conferred to properry is special, and is only minunally received by property outside the
Assessment Districts or the public at large.
Benefit Finding
Quantification of General Benefit
In this section, the general benefit from landscaping and other types of Improvemenu is liberally
estimated and described, and then budgeted so that it is funded by sources other than the
Assessment.
Benefit to Property Outside the Assessment Districts
Properties within the District receive almost all of the special benefiu from the Improvements
because properties in the District enjoy unique close proximity and access to the Improvements that
are not enjoyed by other properties or the public at large. However, certain properties within the
proximity/access radius of the Improvements, but outside of the boundaries of the District, may
receive some benefit from the Improvements. Since this benefit is conferred to properties outside
the District boundaries, it contributes to the overall general benefit calculation and will not be
funded by the Assessments. The general benefit to property outside of the District is calculated
with the parcel and data analysis performed by SQ Consulting Group.
Since the properties outside the District but with frontage abutting the Improvements receive
benefit but cannot be assessed by the District, this is a form of general benefit to other property.
The primary ways that parcels outside the district benefit by the Improvements is from proximity,
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Engineer's Report
City of Orange
Landscape Maintenance District No. 15-1
access, views and extension of outdoor space, which account for 40% of the available benefit.
Therefore, parceLs that abut the landscape areas and are not separated from the Improvements by a
privacy fence are counted for this general benefit. The general benefit to property outside of the
District is calculated as follows.
Assumptions:
47 parcel outside the District
1517 parcels in the Disuict
Calculation:
General Benefit to properry outside the
District=
47/(47+1517) *40% = 1.20%
Note: in previous reports, the number of parcels in the District was incorrectly stated as "1571."
The parcel count and associated calculations have been adjusted to reflect the correct number of
parceLs in the District as "1517."
Benefit to Property Inside the Assessment Districts that is Indirect and Detrvative
The "indirect and derivative" benefit to propeny within the District is particularly difficult to
calculate.A solid argument can be presented that all benefit within the District is special,because the
Improvements are clearly"over and above" and "particular and distinct" when compared with the
baseline level of service and the unique proximity, access and views of the Improvements enjoyed by
benefiting properties in the District.
Nevertheless,the SV"I'A decision indicates there may be general benefit"conferred on real property
located in the district." A measure of the general benefits to property within the Assessment area is
the percentage of land area within the District that is publicly owned and used for regional purposes
such as major roads, rail lines and other regional facilities because such properties used for regional
purposes could provide indirect benefits to the public at large. Appmximately 7.15% of the land
area in the District is used for such regional purposes, so this is a measure of the general benefiu to
propertywithin the District.
Benefit To The Public At Large
The general benefit to the public at large can be estimated by the proponionate amount of time that
the District's Improvemenu including landscaping are used and enjoyed by individuals who are not
residents, employees, customexs or property owners in the District. It should be noted that these
Improvements do not attract the public at large in the same way as park improvements - and they
confer far less benefit to the public at large than do similar park improvements.
One way to measure the special benefit to the general public is by the car trips through an area with
Impmvements. Of the five ways benefits are conferred (pmximity, access, views, e ctension of a
property's green space, and creation of lots),the only benefit that is conferred by way of pass-by car
trips is views, which accounu for 10% of the total benefiu. For pass-by car trips, the benefit of
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Engineer's Repon
Ciry of Orange
Landscape Maintenance District No. 15-1
views is found to be approximately half that of residents, employees, customers or property owners
in the District due to the brevity of the views. Therefore the relative benefit factor is reduced to 5%.
Ne, the views facto are weighted by the relevant number of car trips. Using the lane miles as
representative of pass-by traffic, an analysis shows that 60% of the lane miles are on arterial or
collector streets where the general public has views of the landscaping. Therefore (60% of 5% _)
3.0% of the benefits from the Improvements are general benefits to the public at large.
Special Considerations of Improvements Outside of District
The benefiu are categorized into to two geographic groupings of Improvements: In-District
Improvemenu that include parkways, medians and paseos that are either inside the district
boundaries, or are traffic medians that directly abut or front the district; and Out-of-District
Improvements that are parkways or medians that are both outside the District boundaries and are
not abutting, fronting or lying adjacent to the District. Based on weighted square footage of the
various types of Improvements, Out-of-District Improvements count for approximately 11.6% of
the total benefiu. These Out-of-District benefits are found to be entirely General Benefit. For
example some Improvements at Santiago Canyon College are maintained, but the funding for this
work comes entirely from the College as general benefit funds.
The In-District Improvements, conversely, provide approximately 88.4% of the total benefiu. The
general benefits provided bythese Improvements are discussed above.
Total General Benefits
Using a sum of these three measures of general benefit plus the special considerations of general
benefit from Out-of-District benefits (both weighted accordingl},we find that approximately21.6%
of the benefits conferred by the Improvemenu may be general in nature and should be funded by
sources other than the Assessment. This calculation is shown below.
Relative Percent of
General Overall General
Benefit Benefit Benefit
In-District General Benefits
Outside the District 1.20%
Property within the District 7.15%
Public at Large 3.00%
Totalln-District 11.35% 11.4% x 88.4% = 10.0%
Out-of-District General Benefits 100.0% x 11.6% = 11.6%
TOTALGENERALBENEFIT 21.6%
Although this analysis finds that 21.6% of the Assessment may provide general benefits from the
Impmvements, the Assessment Engineer establishes a requirement for a m;,,;r„um contribution
from sources other than the Assessmenu of 22%. This muiimum contribution above the measure
of general benefits will serve to provide additional coverage for any other general benefiu.
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Ciry of Orange
Landscape Maintenance District No. 15-1
Final Step — Calculate the Current General Benefit Contribution from the Ciry
This general benefit cannot be funded from the Assessments; it must be funded from other sources
such as the Cit}s General Fund or other non-District funds. These contributions can aLso be in the
form of in-lieu contributions to the installation and maintenance of the Improvements such as other
City assets that support and protect the Impmvements. The City of Orange will contribute both
monetary and in-lieu resources to ensure that the general benefits conferred by the pmposed
Improvements are not funded by the District's property ownexs.
A summary and quantification of these other contributions from the City is discussed below:
The City of Orange owns, maintains, rehabilitates and replaces curb and gutter along the border of
the District Improvements. This curb and gutter serves to support, contain, retain, manage
imgation flow and growth, and provide a boundary for the Improvemenu. The contribution from
the City towards general benefit from the maintenance, rehabilitation, and replacement of the curb
and gutter is conservatively estimated to be 5%.
The City owns and maintains a storm drainage system along the border of the District
Impmvements. This system serves to prevent flooding and associated damage to the
Improvements,and manage urban runoff including local pollutants loading from the Improvements.
The contribution from the Citytowards general benefit from the maintenance, and operation of the
local storm drainage system is conservatively estimated to be 5%.
The City owns and maintains local public streets along the border of the District Improvements.
These public streets provide access to the Improvements for residenu' enjoyment as well as efficient
maintenance. The contribution from the Citytowards general benefit from the maintenance of local
public streets is conservatively estimated to be 5%.
The value of the construction of the Improvements can be quantified and monetized as an annuiry.
Since this construction was performed and paid for by non-assessment funds, this "annuity" can be
used to offset general benefit costs,and is conservatively estimated to contribute 10%.
The total General Benefit is liberally quantified at 22% which is entirely offset by the conservatively
quantified total non-Assessment contribution towards general benefit described above of 25%.
Therefore, no additional General Benefit must be funded bythe City.
Zones of Benefit
The boundaries of the District were developed in conjunction and concwrent with the planning and
design of the subdivisions and Impmvements, and thus include only the properties in the City of
Orange that are proximate to the Improvemenu and that would materially benefit from the
Improvements. Certain other properties surrounding the District were not part of the designed
association between the Improvements and the assessed areas, and are generally less proximate to
the Improvemenu. In other words, the boundaries of the District have been narrowly drawn to
include only propenies that will specially benefit from the Improvemenu, and would receive a
declining level of service if the Assessments were not approved.
The SVTA decision indicates:
In a mell-drawn di.rtrict— limited to only parcel.r receiving special benefit.r from tbe improvement— every parcel
svithin that di.rtrict receive.r a .rhared .rpeczal benefit. Under .rectzan 2, subdi7ri.rion (z), the.re benefit.r can be
construed a.r being general benefit,rince tbey are not `particular and di.rtinct"and are not `bver and above"the
benefit.r received by otherpropertie.r "located in the di.rtrict."
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Engineer's Report
City of Orange
Landscape Maintenance District No. 15-1
We do not believe tbat the voter.r intended to invalidate an a.r.re.r.rment di.rtrict that i,r narroivly draWn to include
only pmpertie.r directly benefiting from an improvement. Indeed, tbe ballot material.r reflect othenvi.re. Thu,r, if an
a.c.re.r.rment di.rtrict i.r narra vly drawn, the fact that a benefit i.r conferred throughout tbe di,rtrict doe,r not make it
general ratber tban .rpecial. In that circum.rtance, the characteritiation of a benefit may depend on whether the
parcel receive.r a direct advantage from the i>rrprovement(e.g.,proximity to park) or receive.r an indirect, derivative
advantage re.rulting from the overall public benefit.c of the improvement (e.g.,general enhancement of tbe di.rtrict'.c
property value.r).
In the District, the advantage that each parcel receives from the Improvements is direct, and the
boundaries are narrowly drawn to include only parcels that benefit from the Assessment. Therefore,
the even spread of Assessment throughout the narrowly drawn district is indeed consistent with the
SVTA decision. For the most part, the benefiu from the Improvements within the District do not
vary further based on proximiry of the parcels to the Improvements because the increased benefits
of greater proximity to the Improvemenu are generally offset by a parallel increase in negative
factors such as higher levels of traffic,noise,etc.that comes with increased proximity.
There are two distinct neighborhoods within the District: Santiago H'ills and Hillsdale. Santiago
Hills is a complex neighborhood with arterial and collector streeu traversing the residential areas
and a commercial area on the northeast portion. In addition, Santiago Hills has a system of walking
paths, or paseos,that provide additional benefits not found in the Hillsdale neighborhood. Hillsdale
is a relatively small neighborhood, linear in shape centered on one residential street (Hillsdale Drive)
with Improvements along only one exterior frontage (Santiago Canyon Roac.
In order to most conservatively assure that Assessments are proportional to the relative level of
special benefits in the District, two zones have been created. Zone of Benefit A (or "Zone A")
consists of all of the parcels that lie within the Santiago Hills neighborhood bounded generally by
Chapman Avenue, Jamboree Road, Canyon View Avenue, Skylark Lane and Newport Boulevard.
Zone A receives the full complement of special benefits.
Zone of Benefit B ("Zone B") consisu of all the parcels that lie within the H'illsdale neighborhood
lying generally noith of Santiago Canyon Road. A detailed analysis of the proportionate benefits
received by the Hillsdale neighborhood as compared to the Santiago Hills neighborhood based on
the weighted areas of parkways, paseos, and traffic medians within or proximate to the two zones
shows that the I'illsdale neighborhood (Zone B) receives approximately 75% as much special
benefit as the Santiago neighborhood (Zone A). Therefore Assessments for parcels in Zone B are
reduced approximately 20% from the rates for Zone A(see Assessment Diagram).
Method of Assessment
As previously discussed,the proposed Assessments will provide comprehensive Improvements that
will clearly confer special benefits to properties in the District. The allocation of special benefits to
propeny is partially based on the type of property and the size of propeny. These benefiu can also
partially be measured by the occupants on property in the District because such parcel population
density is a measure of the relative benefit a parcel receives from the Improvements. It should be
noted that many other types of "traditional" assessments also use parcel population densities to
apportion the Assessments. For example, the assessments for sewer systems, roads and water
systems are typically allocated based on the population density of the parcels assessed. Therefore,
the apportionment of benefit is reasonably based on the type of parcel, the size of parcels and the
population density of parcels.
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City of Orange
Landscape Maintenance District No. 15-1
The ne step in apponioning Assessments is to deternune the relative special benefit for each
propeny. This process involves detern ining the relative benefit received by each propeny in relation
to a single family home, or, in other words, on the basis of Single Family Equivalents (SFE). This
SFE methodology is commonly used to distribute Assessments in proportion to estimated special
benefit and is generally recognized as providing the basis for a fair and appropriate distribution of
Assessments. For the purposes of this Engineer's Report, all properties are designated a SFE value,
which is each propett}s relative benefit in relation to a single family home on one parcel. In this
case, the "benchmark" property is the single family detached dwelling which is one Single Family
Equivalent or one SFE.
Not only residential improved property will be assessed, because commercial and other properties
may also receive direct benefiu from the Improvemenu, and will be assessed.
A fi ced or flat Assessment is proposed for all single family residential properties regardless of
occupancy or parcel size. Assessments on multi-family residential parcels vary based on the number
of dwelling units. Assessmenu on commercial property are levied on an acreage basis because larger
properties generally support larger buildings and have higher numbers of employees, customeis and
guests who would benefit from proximity and improved access to well-maintained and improved
landscaping.
Finally, the special benefits to be derived from the proposed Assessments will be conferred on
property and are not based on a specific property owner's use of the improvements, a specific
property owner's occupancy of property,or the property owner's demographic status such as age or
number of dependents. The benefits conferred to property are related to the average number of
people who could potentially live on, work at, or otherwise could occupy a propeny, not how the
propeny is currently used by the present owner. Therefore, the number of people who could or
potentially live on, work at or otherwise occupy a property is one indicator of the relative level of
benefit received by a property.
In conclusion, the Assessment Engineer determined that the appropriate method of assessment
apportionment should be based on the type of property, the relative size of the property, propeny
location, its relative population and its proximity to Improvements. This method is further described
below.
Residential Properties
Certain residential properties in the District that contain a single residential dwelling unit are
assigned one Single Family Equivalent or 1.0 SFE. Detached or attached houses and zem-lot line
houses are included in this category of single family residential property. If there is more than one
single family detached dwelling on a parcel, it will be charged one SFE per single family detached
dwelling.
Properties with more than one residential unit (other than parcels with more than one detached
single family dwelling as described above) are designated as multi-family residential properties.These
propenies benefit from the Improvements in proportion to the number of dwelling units that
occupy each property, the a erage number of people who reside in multi-family residential units
versus the average number of people who reside in a single family home (Population Density Factor)
and the relative size of each type of residential dwelling unit (Square Foot Factor). The population
density facto s for the area in Orange Counry encompassing the District, as depicted in the
following table, provide the basis for deternuning the SFE factors for residential properties. Using
the total population in a certain property type in the area of the District from the 2010 Census and
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Engineer's Repon
Ciry of Orange
Landscape Maintenance District No. 15-1
dividing it by the total number of such households, finds that approximately 3.21 pe ons occupy
each single family residence, whereas an average of 2.93 persons occupy each condominium. The
ratio of 3.21 people on average for a single family residence and 2.93 people per dwelling unit in a
condominium unit results in a population density equivalent of 0.91 for condominiums. Ne, the
relative building areas are factored into the analysis because special benefits are related to the average
size of a property, in addition to average population densities. For a condominium, this calculation
results in an SFE factor of 0.71 per dwelling unit.
Table 1—Residential Density and Assessment Factors
Pop.Density SqFt SFE
Type of Residential Property Equivalent Factor Factor
Single FamilyResidential 1.00 1.00 1.00
Condominium 0.91 0.78 0.71
There are no other multi-family property types (e.g., duplex, triplex, fourplex, apartments) in the
District, and none are foreseen in the future. Therefore no SFE-based assessment rate is calculated.
Commercial Properties
SFE values for commercial land uses are based on the equivalence of special benefit on a land area
basis between single family residential property and the average commercial property. The SFE
values for various commercial land uses are further defined by using average employee densities
because the special benefit factors described previously can be measured by the average number of
people who work at commercial properties.
In order to detemiine employee density factors, the findings from the San Diego Association of
Govemmenu Traffic Generators Study (the "SANDAG Stud}') are used because these findings
were approved by the State Legislature as being a good representation of the average number of
employees per acre of land area for commercial properties. As deternuned by the SANDAG Study,
the average number of employees per acre for general commercial property is 24.
In comparison, the average number of people residing in a single family home in the area is 3.21.
Since the average lot size for a single family home in the District is approximately 0.12 acres, the
average number of residents per acre of residential property is 26.8.
The employee density per acre is roughly equal to (or 0.9 times) the population density of single
family residential property per acre (24 employees per acre / 26.8 residents per acre). However,the
benefit derived by employees on commercial propenies is less than that derived by a resident on
residential property, generally due to less time of use of services and Improvements. The
Assessment Engineer determines that this factor is 0.5 for commercial to 1 for residential. Table 3
below shows the average employees per acre of land area or portion thereof for various types of
commercial properties and lisu the relative SFE facto per 0.12 acre for propenies in each land use
category.
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Engineer's Report
City of Orange
Landscape Maintenance District No. 15-1
Commercial properties in excess of 5 acres generally involve uses that are more land intensive
relative to building areas and number of employees (lower coverage ratios). As a result, the benefit
factors for commercial property land area in excess of 5 acres is deternuned to be the SFE rate per
0.12 acre for the first 5 acres and the relevant SFE rate per each additional acre over 5 acres.
Table 2—Commercial Density and Assessment Factors
Average SFE Units
Type of Commercial Land Use Employees per
per Acre 0.12 Acre
Z
General Commercial 24 o.soo
Office3 68 a2o
Shopping Center 24 0.500
1. Source: San Diego Association of Governments Traffic Generators Study.
2. The SFE factors for commercial and industrial parcels are applied by the 0.12 acre of land area or
portion thereof. (Therefore,the nunimum assessment for any assessable parcel in these categories is
the SFE Units listed herein.) The rates apply up to first 5 acres of parcel size. Additional acreage is
benefited at the rate shown above per acre or portion thereof.
3. Currently there are no parcels in the District in the Office category. This rate is included in the
event General Commercial space is converted to Office space.
Vacant/Undeveloped Properties
The benefit to undeveloped properties is detemuned to be proportional to the corresponding
benefits for similar type developed properties, but at a lower rate due to the lack of improvements
on the property. A measure of the benefits accnung to the underlying land is the average value of
land in relation to Improvements for developed propeny. An analysis of the assessed valuation data
from the County of Orange found that approximately 55% of the assessed value of impmved
properties is classified as the land value. It is reasonable to assume, therefore, that approximately
55% of the benefiu are related to the underlying land and 45% are related to the improvements and
the day-to-day use of the propeny. Using this ratio, the SFE factor for vacant/undeveloped parcels
is 0.55 per parcel.
Other Properties
Article XIIID stipulates that publicly owned properties must be assessed unless there is clear and
convincing evidence that those properties receive no special benefit from the Assessment.
All propenies that are specially benefited are assessed. Certain other publicly owned property that lie
within the District boundaries, including Santiago Canyon College, Chapman H'ills Elementary
School, Santiago H'ills Park, and City of Orange public safety facility on East Fort Road, are not
assessed. These are discussed below.
Santiago Canyon College: The College lies within the District and certain Improvements lie on their
property. Although the College is not assessed in this District, the College pays for any special
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Engineer's Repon
City of Orange
Landscape Maintenance District No. 15-1
benefit through a separate agreement with the City, and that monetary contribution is shown in
Table 1. In addition, all benefit attributable for the College property is included in the General
Benefit calculation shown above.
Chapman Hills Elementar School: Any special benefit attributable to the School buildings and
parking lots are entirely offset by the benefit provided to the neighborhood by the outdoor fields.
This facility was also included in the list of regional facilities in the calculation of general benefit to
properties inside the district that is indirect and derivative above.
Santiago Hills Park Any special benefit attributable to the Park is entirely offset by the benefit
provided to the neighborhoods by park facilities. This faciliry was also included in the list of
regional facilities in the calculation of general benefit to properties inside the district that is indirect
and derivative above.
City of Oran e Public Safety Facility on East Fort Road: Any special benefit received by this facility
is entirely offset by the benefit provided back to the neighborhood similar to other in-lieu
contributions to the General Benefit contributions that are funded by the City's General Fund or
other non-District funds.
Miscellaneous, small and other parcels such as roads, right-of-way parcels, and common areas
typically do not generate significant numbers of employees, residents, customers or guests, and have
limited economic value. These miscellaneous parcels receive m;nimal, if any, benefit from the
Improvements and are assessed an SFE benefit factor of zero SFEs.
Annual Cost Inde ng
The Assessment is subject to an annual adjustment tied to the Consumer Price Index-U for the Los
Angeles-Long Beach-Anaheim area as of December of each succeeding year (the "Q'I"), with a
maximum annual adjustment not to exceed 3%. Any change in the Q'I in excess of 3% shall be
cumulatively reserved as the "Unused Q'I" and shall be used to increase the maximum authorized
assessment rate in years in which the Q'I is less than 3%. The inaximum authorized assessment rate
is equal to the maxunum assessment rate in the fust fiscal year the Assessment was levied adjusted
annually by the m;nimum of either 3% or the change in the Q'I plus any Unused Q'I as described
above.
Appeals of Assessments Levied to Property
Any property owner who feels that the Assessment levied on the subject property is in error as a
result of incorrect infoxrnation being used to apply the foregoing method of assessment may file a
written appeal with the City of Orange City Manager or his or her designee. Any such appeal is
limited to correction of an Assessment during the then-current Fiscal Year and applicable law.Upon
the filing of any such appeal,the City Manager or his or her designee will promptly review the appeal
and any information provided by the propeny owner. If the City Manager or his or her designee
finds that the Assessment should be modified, the appropriate changes shall be made to the
Assessment Roll. If any such changes are approved after the Assessment Roll has been filed with the
County for collection, the City Manager or his or her designee is authorized to refund to the
property owner the amount of any approved reduction. Any dispute over the decision of the City
Manager or his or her designee shall be referred to the Orange City Council, and the decision of the
City Council shall be final.
Assessment Funds Must Be Expended Within the District Area
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Engineer's Report
City of Orange
Landscape Maintenance District No. 15-1
The net a ailable Assessment funds, after incidental, administrative, financing and other cosu shall
be expended exclusively for Improvements within the boundaries of the District or as described
herein, and appropriate incidental and adinuiistrative costs as defined in the Plans and Specifications
section.
24
Engineer's Report
Ciry of Orange
Landscape Maintenance District No. 15-1
ASSESSMENT
The amount to be paid for said Improvements and the expense incidental thereto, to be paid by the
District for the Fiscal Year 2019-20 is generally as follows:
Table 3 —Summary Cost Estimate
For Landscape Maintenance District No. 15 -1
For Fiscal Year 2020-21
BUDGET ITEM COST
ANNUAL MAINTENANCE
Operating Expenses 846,872
Salaries & Benefits 45,119
Administration and Project Management 25,424
Capital Expenses/Revenues 500,000
Total for Services 1,417,415
Less Other Revenue 558,938)
Reserve Funds 517,119)
Net Amount of Assessment 341,358
As required by the Act, an Assessment Diagram showing the exterior boundaries of the
Improvement District is hereto attached and incorporated herein by reference. The distinctive
number of each parcel or lot of land in the District is its Assessor Parcel Number appearing on the
Assessment Roll.
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Engineer's Repon
City of Orange
Landscape Mauitenance District No. 15-1
ASSESSMENT DIAGRAM
The parcels proposed to be assessed in Landscape Maintenance District No. 15-1 are shown on the
Assessment Diagram, which is on file with the City Clerk of the City of Orange, and includes all
those properties included in the original formation of LMD No. 86-2. The following Assessment
Diagram is for general location only and is not to be considered the official boundary map. The
lines and dimensions of each lot or parcel within the District are those lines and dimensions as
shown on the maps of the Assessor of the County of Orange, for Fiscal Year 2020-21, and are
incorporated herein by reference,and made a part of this Diagram and this Report.
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Engineer's Report
Ciry of Orange
Landscape Maintenance District No. 15-1
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Q City of Orange LMD No. 15-1 Boundary
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CITY OF ORANGE LANDSCAPING MAINTENANCE DISTRICT No. 15-1
ASSESSMENT DIAGRAM
PREPARED BY SCI CONSULTING GROUP
4745 MANGELS BLVD
FAIRFIELD CA 94534
707y430-43D0
27
Engineer's Repon
City of Orange
Landscape Maintenance District No. 15-1
ASSESSMENT ROLL
An Assessment Roll (a listing of all parcels assessed within the Assessment District and the amount
of the Assessment) will be filed with the City C1erk and is, by reference, made part of this Report
and is available for public inspection during nornial office hours at the City Hall at 300 East
Chapman Avenue,Orange,Califomia 92866.
Each lot or parcel listed on the Assessment Roll is shown and illustrated on the latest County
Assessor records and these records are, by reference made part of this Report. These records shall
govem for all details concerning the description of the lots or parcels.
28