CITY OF GARDEN GROVE
ENGINEER’S REPORT
DOWNTOWN ASSESSMENT DISTRICT
FISCAL YEAR 2024-25
ORANGE COUNTY, CALIFORNIA
May 8, 2024
PREPARED BY
101 Progress, Suite 250
Irvine, CA 92618
www.weareharris.com
Engineer’s Report
Downtown Assessment District
City of Garden Grove
Fiscal Year 2024-25
TABLE OF CONTENTS
Engineer’s Certification .................................................................................................. i Part I - Overview ........................................................................................................... 1 Part II - Plans and Specifications ................................................................................... 2 Part III – Cost Estimate .................................................................................................. 3 Part IV – Method of Apportionment ............................................................................ 4 Appendix A – Assessment Diagram .............................................................................. 6 Appendix B- Assessment Roll ........................................................................................ 8
Engineer’s Report
Downtown Assessment District
City of Garden Grove
Fiscal Year 2024-25
i
ENGINEER’S CERTIFICATION
AGENCY: THE CITY OF GARDEN GROVE
PROJECT: DOWNTOWN ASSESSMENT DISTRICT
TO: THE CITY COUNCIL OF THE
CITY OF GARDEN GROVE
STATE OF CALIFORNIA
ENGINEER’S REPORT FOR FISCAL YEAR 2024-25
The preparation of this Annual Engineer’s Report (“ Report”) is in conformance with the obligation of t he City Council for the annual levy of assessments wit hin the Downtown Assessment District of the City of Garden Grove to provide services upon each lot or p arcel of land in the district in proportion to the estimated benefit to be received by each such lot o r parcel of land for Fiscal Year 2024-25. Services will be provided through June 30, 2025.
Pursuant to the Landscaping and Lighting Act of 1972 (Part 2 Division 15 of the Streets and Highways Code of the State of California, commencing with Section 22500) (“Act”), and in accordance with the City of Garden Grove’s Resolution being adopted by the City Council for:
DOWNTOWN ASSESSMENT DISTRICT
(Hereinafter referred to as the “District”),
I, Alison Bouley, authorized representative of the District, the duly appointed Assessment Engineer submit the following Report which consists of the following four (4) parts and Appendices:
PART I
Overview: Provides the background and reason for the District.
PART II
Plans and Specifications: Plans and specifications for the improvements sho wing and describing the general nature, location and extent of the improvements.
PART III
Cost Estimate: The estimated cost to be funded by the District fo r the operation, servicing and maintenance of the improvements for fiscal year 202 4-25, including incidental costs and expenses in
ii
connection therewith.
PART IV
Method of Apportionment: The method of apportionment of assessments indicat es the proposed assessment of the net amount of the costs and expen ses of the maintenance and/or servicing of the existing and ultimate improvements to be assessed u pon the several lots and parcels of land within the Assessment District in proportion to the estimated special benefits to be received by such lots and parcels.
Appendices
Appendix A – Assessment Diagram
Appendix B – Assessment Roll
In conclusion, it is my opinion that the costs and expenses of the District have been assessed to the lots and parcels within the boundaries of the District i n proportion to the estimated benefits to be receiv ed by each lot or parcel from the services provided an d in conformance with the assessment methodology adopted by the City Council for the levying of assessments.
DATED: May 8, 2024
___________________________________________
Alison Bouley, P.E., Assessment Engineer
R.C.E. No. C61383
Engineer of Work
County of Orange
State of California
Engineer’s Report
Downtown Assessment District
City of Garden Grove
Fiscal Year 2024-25
1 PART I – OVERVIEW
This Report has been prepared and is submitted for consideration by the City Council of the City of Garden Grove under the authority of the Landscaping and Lighting Act of 1972 as set forth in Part 2 of Division 15 of the California Streets and Highways Code.
Background
In 1977, the City of Garden Grove formed the Main S treet Assessment District (MSAD) No. 1 to provide funds for the construction and maintenance of speci al public improvements along Main Street. Those include planters, trees, streetscaping, sidewalks, benches, trash receptacles, drinking fountains, streetlights, drainage, and bollards.
Following formation of the District, assessments we re adjusted periodically as the cost of providing services increased. The current assessment rate has not been increased since 1989. The existing assessment was deemed to be exempt from the require ments set forth in Section 4 of Article XIIID by Section 5(a) following the passage of Prop 218 in 1996 which added Article XIIID to the State Constitution.
Any increase to the current assessment after July 1 , 1997 is subject to the requirements of Section 4 and may not be increased without the approval of the property owners within the District.
The assessment rate was proposed to be increased for Fiscal Year 2004-05 to keep up with the rising costs and the higher levels of maintenance requested by the businesses within this Assessment District.
Notices and ballots were mailed to all property owners in the District in accordance with Section 4, Article XIIID of the California State Constitution (Proposi tion 218). On June 8, 2004, the public hearing was held, the ballots were tabulated, and the property owners rejected the proposed assessment increase.
Therefore, the assessments will remain the same in Fiscal Year 2024-25 as in previous years and the services funded by the assessment have been adjusted to match the funds available. No City contribution is made to this District.
In the fall of 2017, Council approved changing the name of the district from “Main Street Assessment District No. 1” to “Downtown Assessment District”.
Engineer’s Report
Downtown Assessment District
City of Garden Grove
Fiscal Year 2024-25
2 PART II – PLANS AND SPECIFICATIONS
The facilities, which have been constructed within the City of Garden Grove, and those which may be subsequently constructed, will be serviced and main tained as generally described as follows: A portio n of Main Street from Garden Grove Boulevard to Acacia Parkway and a portion of Garden Grove Boulevard between 150.16 feet west of the centerline of Main Street and 150.06 feet east of the centerline of Main Street, all being within said District.
Descriptions of Improvements
The facilities to be maintained and serviced for th e District as described as follows: Facilities inc lude but are not limited to: streetscape improvements including sidewalks, decorative paving, street lights, street trees, and street furniture, including bollards, be nches, trash receptacles, drinking fountains, miscellaneous planters, and related items within the boundaries of said District.
Maintenance means the furnishing of services and ma terials for the ordinary and usual maintenance, operation and servicing of the landscaping and appu rtenant facilities, including repair, removal or replacement of all or part of any of the landscaping or appurtenant facilities; providing for the life, growth, health and beauty of the landscaping, including cul tivation, irrigation, trimming, spraying, fertilizi ng and treating for disease or injury; the removal of trim mings, rubbish, debris and other solid waste; and t he cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti.
Servicing means the furnishing of water for the irr igation of the landscaping and the maintenance of a ny of the lighting facilities or appurtenant facilitie s and the furnishing of electric current or energy, gas or other illuminating agent for the lighting facilitie s, or for the lighting or operation of the landscap ing or appurtenant facilities.
The plans and specifications for the improvements, showing and describing the general nature, location , and the extent of the improvements, are on file in the office of the Director of Public Works and are incorporated herein by reference.
Engineer’s Report
Downtown Assessment District
City of Garden Grove
Fiscal Year 2024-25
3 PART III – COST ESTIMATE
The City's budget for the operation, maintenance an d servicing of lighting details the estimated costs for Fiscal Year 2024-25 as available at the time of pre paration of this Report, and includes engineering f ees, legal fees, printing, mailing, postage, publishing, and all other related costs identified with the Di strict proceedings.
The 1972 Act requires that a special fund be set-up for the revenues and expenditures of the District. The 1972 Act also has provisions for establishing a sep arate reserve to fund capital improvements as part of the assessment. Funds raised by assessment shall be used only for the purpose as stated herein. A contribution to the District by the City may be mad e to reduce assessments, as the City Council deems appropriate. Any balance or deficit remaining on July 1 must be carried over to the next fiscal year.
Proposed
Fiscal Year
2023-24
Proposed
Fiscal Year
2024-25*
Starting Fund Balance (Fund Balance as of July 1) $96,439 $60,800 Estimated Revenues
Total Estimated Assessments: $26,700 $26,700
Interest $500 $500
Subtotal Revenues: $27,200 $27,200
Estimated Expenditures
Trash Pick Up $0 $0
General Maintenance $19,055 $20,500
Street Lighting $2,060 $3,000
Street Improvements $10,300 $10,609
Main Street Seasonal Banners $3,090 $3,183
Streetscape Cleaning $6,592 $6,790
Professional Services $3,605 $3,500
Administrative Support $2,700 $0
Insurance $0 $0
Subtotal Expenditures: $47,402 $47,582
Estimated Year End Fund Balance $76,237 $40,418
Fund Balance Detail
Operating Reserve (50% of O&M) $23,791
Capital Replacement Reserve $52,536
Assessment Detail
Total Front Feet (FF) in Assessment District: 1,340. 45 1,340.45 Assessment Rate ($/FF): $19.92 $19.92
* Fund balance adjusted after a District review
Engineer’s Report
Downtown Assessment District
City of Garden Grove
Fiscal Year 2024-25
4 PART IV – METHOD OF APPORTIONMENT
General
Part 2 of Division 15 of the Streets and Highways Code, the Landscaping and Lighting Act of 1972, permits the establishment of assessment Districts by cities for the purpose of providing certain public improvements which include the maintenance and serv icing of street lights, traffic signals, landscapin g, parks and recreational facilities.
The 1972 Act requires that maintenance assessments be levied according to benefit rather than according to assessed value. Section 22573 provides that:
The net amount to be assessed upon lands within an assessment District may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the est imated benefit to be received by each such lot or parcel from the improvements.
The Act permits the designation of areas of benefit within any individual assessment District if "by reasons or variations in the nature, location, and extent o f the improvements, the various areas will receive different degrees of benefit from the improvement" (Sec. 22574). Thus, the 1972 Act requires the levy of a true "assessment" rather than a "special tax."
In addition, Proposition 218, the “Right to Vote on Taxes Act” which was approved on the November 1996 statewide ballot and added Article XIIID to the California Constitution, requires that a parcel’s assessment may not exceed the reasonable cost for the proportional special benefit conferred on that parcel. Article XIIID provides that only special benefits are asses sable and the City must separate the general benefi ts from the special benefits. It also requires that p ublicly owned properties which benefit from the improvements be assessed.
If the assessment is approved by the property owner s as required by Article XIIID of the California Constitution, Section 53739 of the Government Code allows that the assessment may be imposed thereafter at “…any rate or amount that is less tha n or equal to the maximum amount authorized by the voter approved ordinance or resolution”.
Section 53739 also allows that the assessment may be adjusted for inflation based upon a clearly defined formula that is stated in the resolution that is approved by the property owners at an election authorizing the levy of the assessment.
The formula to be used to distribute the costs of providing the enhanced levels of services described in this Report to the assessable parcels within the District was approved by the City Council at the time the District was formed.
Engineer’s Report
Downtown Assessment District
City of Garden Grove
Fiscal Year 2024-25
5 Since the District improvements are entirely located immediately adjacent to the benefited parcels, it has been determined that there is little or no general benefit to the public at large.
Special Benefit Analysis
Street Landscaping - Trees, landscaping, hardscaping and appurtenant facilities, if well maintained, provide beautification, shade, enhance surroundings and desirability of the properties.
BENEFITS OF LANDSCAPING
Security and Safety
• Improved erosion resistance and dust
control
Community Character and Vitality
• Improved aesthetic appeal of nearby parcels
• Beautifies and makes safer flood control facilities
that would otherwise be unsightly and potentially
dangerous
It should be noted that the definition of “parkways ” above may include the roadway as well as the landscaping along the roadway.
Streetlights - The ongoing operation and maintenance and operation of streetlights benefit all properties within the District by providing security, safety a nd community character and vitality as outlined bel ow.
Streetlights provide only incidental benefits to motorists traveling to, from or through the area.
BENEFITS OF STREET LIGHTING
Security and Safety
• Mitigates property damage due to crime
• Alleviates the fear of crime, which increases
the desirability of the property
• Enhances safe ingress/egress to property
Community Character and Vitality
• Promotes social interaction
• Contributes to a positive nighttime visual image
Methodology
The parcels of land in the District are all commerc ial properties and are assessed based on a linear f oot (LF) frontage on Main Street and Garden Grove Boule vard. City-owned parking lot properties are not considered to benefit from the improvements and are therefore excluded from assessment. The table below provides the assessment apportionment for the District.
Engineer’s Report
Downtown Assessment District
City of Garden Grove
Fiscal Year 2024-25
6 The actual assessments levied in any fiscal year will be as approved by the City Council and may not exceed the maximum assessment rate without receiving property owner approval for the increase.
Previous Estimated Total Maximum
Fiscal Year 23-24 Fiscal Year 24-25 District Fiscal Year 24-25 Total Asmt Total Asmt Frontage* Asmt per LF
$26,700 $26,700 1,340.45 $19.92
* Total frontage may differ due to rounding.
Engineer’s Report
Downtown Assessment District
City of Garden Grove
Fiscal Year 2024-25
7 APPENDIX A – ASSESSMENT DIAGRAM
A diagram showing the exterior boundaries of the Di strict is on file in the Office of the City Clerk a nd incorporated herein by reference.
The lines and dimensions of each lot or parcel with in the District are those lines and dimensions show n on the maps of the Assessor of the County of Orange for the fiscal year to which this Report applies. The Assessor's maps and records are incorporated by reference herein and made part of this Report.
A reduced copy of the City of Garden Grove Downtown Assessment District Map is provided on the following page.
Engineer’s Report
Downtown Assessment District
City of Garden Grove
Fiscal Year 2024-25
8 Engineer’s Report
Downtown Assessment District
City of Garden Grove
Fiscal Year 2024-25
9 APPENDIX B – ASSESSMENT ROLL
The total proposed assessment for Fiscal Year 2024-25 and the amount of the total proposed assessment apportioned to each lot or parcel within the District, as shown on the latest assessment roll at the Orange County Assessor's Office, are contained in the Assessment Roll provided below.
The description of each lot or parcel is part of th e records of the Assessor of the County of Orange a nd these records are, by reference, made part of this Report.
Engineer’s Report
Downtown Assessment District
City of Garden Grove
Fiscal Year 2024-25
10 Proposed
Fiscal Year
Assessor's Linear 2024-25
Parcel No. Feet Asmt
089-213-11 25.50 $507.91
089-213-12 49.50 $985.95
089-213-13 25.00 $497.95
089-213-14 25.00 $497.95
089-213-17 50.00 $995.90
089-213-18 25.00 $497.95
089-213-19 25.00 $497.95
089-213-22 25.00 $497.95
089-213-33 155.09 $3,089.30
089-213-34 101.05 $2,012.98
089-213-35 75.00 $1,493.85
089-213-37 50.00 $995.90
089-213-38 75.00 $1,493.85
090-161-01 47.27 $941.53
090-161-02 50.00 $995.90
090-161-03 50.00 $995.90
090-161-04 25.00 $497.95
090-161-06 25.00 $497.95
090-161-10 25.00 $497.95
090-161-11 25.00 $497.95
090-161-12 25.00 $497.95
090-161-13 25.00 $497.95
090-161-14 25.00 $497.95
090-161-15 25.00 $497.95
090-161-16 50.42 $1,004.27
090-161-17 25.25 $502.93
090-161-18 161.37 $3,214.58
090-161-34 50.00 $995.90
1,340.45 $26,700.00