Agenda packet — Orange City Council, June 13, 2023 (part 3 of 3)

MAXIMUM EMERGENCY GROUND AMBULANCE RATES

OCEMS Policy #714.00 Effective January 1, 2023
I. AUTHORITY:

Orange County Board of Supervisors, Resolution No. 22-163, Item No. 34

MAXIMUM EMERGENCY GROUND AMBULANCE RATES

EFFECTIVE January 1, 2023

The following is a list of maximum allowable emergency ambulance service rates to be charged an emergency patient by a licensee. These rates were approved by the County of Orange Board of Supervisors.

TYPE OF CHARGE BASIS FOR CHARGE 2022 Rate RATE
Emergency BLS Base Rate Applicable for urgent or Code 3 responses at the request of a public safety employee $1,381.75 $1,832.27 Mileage Per patient mile or fraction thereof $ 19.77 $ 19.05 Oxygen (includes mask or
cannula)
Applicable when administered $ 96.95 Included in
Base Rate
Standby Per 30 minutes after the first 30 minutes
and any fraction thereof $ 47.50* $ 129.00
Expendable Medical
Supplies
Maximum per response or fair market
value, whichever is the least amount $ 38.27 Included in Base Rate
*per 15 minutes after the first 15 minutes and any fraction thereof.

ALS Paramedic Assessment and Transportation Rate for Orange County Fire Authority Jurisdictional Area (excepting for San Clemente, Westminster, and Buena Park) $387.35

Approved:

OCEMS Director

Effective Date: 01/01/2023
Reviewed Date: 12/27/2022
Original Date: 7/1989

404
405
406
407
Bureau of Labor Statistics
Series Id:

Series Title:

Area:

Item:

Base Period:

Years:

Year Feb
2013 1.9
2014 -2.2
2015 -8.5
2016 -2.1
2017 5.5
2018 5.3
2019 0.2
2020 2.2
2021 -0.2
2022 21.0
2023 2.4
Transportation in West urban, all urban consumers, not
seasonally adjustedWest
Transportation
1982-84=100
2013 to 2023
CPI for All Urban Consumers (CPI-U)
12-Month Percent Change
CUUR0400SAT
Not Seasonally Adjusted
Source: Bureau of Labor Statistics Generated on: May 16, 2023 (01:54:26 PM) 408 Agenda Item
City Council
Item #: 6.1. 6/13/2023 File #: 23-0368

1. SUBJECT
Appointment to the Orange Public Library Board of Trustees.

2. SUMMARY
Due to the resignation of Joseph Valencia, an unscheduled vacancy exists on the Orange Public Library Board of Trustees. A Notice of Vacancy was posted on August 16, 2022, in accordance with Government Code Section 54974.

3. RECOMMENDED ACTION
Confirm Mayor Slater’s recommendation to appoint Kathleen Stevens to the Library Board of Trustees to fill an unexpired term ending on June 30, 2024.

City of Orange Printed on 6/7/2023Page 1 of 1
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Agenda Item
City Council
Item #: 6.1. 6/13/2023 File #: 23-0368

1. SUBJECT
Appointment to the Orange Public Library Board of Trustees.

3. RECOMMENDED ACTION
Confirm Mayor Slater’s recommendation to appoint Kathleen Stevens to the Library Board of Trustees to fill an unexpired term ending on June 30, 2024.

City of Orange Printed on 6/7/2023Page 1 of 1
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Agenda Item
City Council
Item #: 8.1. 6/13/2023 File #: 23-0321
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Public Hearing to consider approval of the Landscape Maintenance Assessment Districts 86-2 (Santiago Hills), and 15-1 (Santiago Hills Overlay) Final Engineer’sReports for Fiscal Year 2023- 2024. Resolution No. 11464.

2. SUMMARY
Resolution 11464 is the second step and will complete the process of the annual assessment for Landscape Maintenance Assessment Districts 86-2 (Santiago Hills) and 15-1 (Santiago Hills Overlay). The total assessments to be levied from 86-2 and 15-1 for Fiscal Year 2023-2024 are $533,651 and $367,579, respectively. The annual assessment per unit for 86-2 will remain at $369.44 for a single family detached unit and $221.66 for a condominium. For 15-1, staff recommends a 3.0% Consumer Price Index adjustment, the maximum allowed, which increases per unit assessment from $255.60 to $263.27 for a single family detached unit and from $181.48 to $186.92 for condominiums.

3. RECOMMENDED ACTION

1. Adopt Resolution No. 11464. A Resolution of the City Council of the City of Orange approving the Engineer’s Reports and providing for the annual assessment for Landscape Maintenance Districts 86-2 (Santiago Hills) and 15-1 (Santiago Hills Overlay).

2. Establish the assessment per single family detached unit per year for Fiscal Year 2023-2024 for Landscape Maintenance Districts 86-2 (Santiago Hills) and 15-1 (Santiago Hills Overlay) at $369.44 and $263.27 respectively for single family detached, and $221.66 and $186.92 respectively for condominiums.

4. FISCAL IMPACT
The total expenditure for this assessment is $922,793 and will be funded through Santiago Hills and Santiago Hills Overlay Landscape Maintenance Districts (291).

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 benefitting property City of Orange Printed on 6/7/2023Page 1 of 2
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411
Item #: 8.1. 6/13/2023 File #: 23-0321
owners.

This year’s assessment for a single family detached unit is $369.44. The assessment for a condominium is $221.66. 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 the 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 2023-2024 (FY24) budget for the combined LMD 86-2 and LMD 15-1 indicates the amount of funding required to maintain the Districts landscape and provides a capital budget to replace aging landscaping and infrastructure over time. Additional revenues to fully fund the Districts would be obtained through the overlay district, LMD 15-1, and a separate agreement with the Rancho Santiago Community College District. The existing LMD 86-2 will stay at the maximum assessment; however, the assessment for LMD 15-1 will include a 3.0% Consumer Price Index (CPI) increase. The Assessment for LMD 15-1 is permitted to increase annually consistent with CPI increases for the Los Angeles-Long Beach- Anaheim area that is currently 4.9%. Community Services Department staff recommended assessing the CPI adjustment for FY24 the maximum 3.0% allowed, to continue capital renovations of the aging landscape. The annual assessment for 15-1 for a single family detached unit will increase by $7.67 from $255.60 to $263.27. The annual assessment for 15-1 condominiums will increase by $5.44 from $181.48 to $186.92.

The maximum assessment total for LMD 86-2 for FY24 is $533,651. The assessment total for LMD 15-1 for FY24 is $367,579 including the 3.0% CPI adjustment. Revenues of $25,106 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 $926,336 in revenue. Expenditures in FY24 are anticipated to be approximately $922,793 which is $3,543 under revenues. Excess funds will be used to supplement the reserve fund balance. The City continues to actively work with District residents on developing a renovation plan for their 30 year old landscape that is both fiscally and environmentally sustainable. The projected FY23 combined year-end reserve fund balance is $717,598.

The attached Final Engineer’s Report contains detailed information about the assessment.

Each year, the process for setting the assessment of the Landscape Maintenance Districts is initiated. The process began on April 25, 2023 with the City Council’sApproval of Resolution No. 11449 which approved the Preliminary Engineer’sReports for LMD 86-2 and 15-1, and set June 13, 2023 as the date for the public hearing. This public hearing is the second step in the process and is held in accordance with the Lighting and Landscape Maintenance Act of 1972 as outlined in the “Order of Procedure”. At this time, property owners will have an opportunity to be heard on this issue.

7. ATTACHMENTS
· Resolution No. 11464
· Final Engineer’s Report - Landscape Maintenance District No. 86-2 · Final Engineer’s Report - Landscape Maintenance District No. 15-1 City of Orange Printed on 6/7/2023Page 2 of 2
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412
Agenda Item
City Council
Item #: 8.1. 6/13/2023 File #: 23-0321
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director

3. RECOMMENDED ACTION

4. FISCAL IMPACT
The total expenditure for this assessment is $922,793 and will be funded through Santiago Hills and Santiago Hills Overlay Landscape Maintenance Districts (291).

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.

This year’s assessment for a single family detached unit is $369.44. The assessment for a condominium is $221.66. This is the same as last year and the largest assessment currently allowed.

The attached Final Engineer’s Report contains detailed information about the assessment.

A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE APPROVING THE ENGINEER’S

REPORT AND PROVIDING FOR THE ANNUAL

ASSESSMENT FOR LANDSCAPE MAINTENANCE
DISTRICTS 86-2 ( SANTIAGO HILLS ), AND 15-1
(SANTIAGO HILLS OVERLAY)

WHEREAS, the City Council of the City of Orange has previously formed a special maintenance district pursuant to the terms of the “Landscaping and Lighting Act of 1972” being part 2 of Division 15 of the California Streets and H ighways Code, in what is known and designated as Landscape Maintenance District Nos. 86-2 and 15-1 (“Assessment Districts”); and

WHEREAS, the City Council has initiated proceedings for the levy of the annual assessment for the Assessment District; and

WHEREAS, at this time a public hearing has been held in the manner and form as required by law, and the City Council has considered all oral statements and written protests made or filed by all interested persons; and

WHEREAS, this City Council is now satisfied with the assessment and diagram and all other matters as contained in the Engineer’s Report as now submitted for final consideration and approval, and is now desirous of proceeding with the levy of the annual assessment.

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 all protests and objections of every kind and nature by, and the same hereby are, overruled and denied.

Section III:

That the Final Engineer’s Report consisting of the final submitted assessment and diagram for the proceedings, is hereby approved and confirmed and a copy of said Report is hereby filed with the City Clerk.

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2 Section IV:

That the assessments for fiscal year 2023-2024 be established as approved by the City Council, and are hereby confirmed and levied upon the respective subdivisions of land in the Assessment District in the amounts as set forth in said final approved Engineer’s Report.

Section V:

The City Clerk shall immediately accomplish the following:

A. Deliver to the City Engineer the assessment, together with the diagram attached thereto and made a part thereof, as confirmed, with a Certificate of Confirmation attached and the date thereof. Said City Engineer shall then immediately place for a record said diagram and assessment in his office in a suitable book as a permanent record and attach a Certificate of Recordation.

B. Cause to be filed a certified copy of a diagram and assessment with the County Auditor, said filing to be completed no later than the 3
rd Monday in August.

Section VI:

That the above confirmed assessment shall be collected at the same time and in the same manner as County property taxes are collected, and all laws providing for the collection and enforcement of these assessments.

ADOPTED this ____ day of ____________________, 2023

Daniel R. Slater, Mayor, City of Orange

ATTEST:

Pamela Coleman, City Clerk, City of Orange

416
3 STATE OF CALIFORNIA )

COUNTY OF ORANGE )

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 , 2023 by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

Pamela Coleman, City Clerk, City of Orange

417
Engineer’s Report
City of Orange
Landscape Maintenance District No. 86-2
1 CITY OF ORANGE
FINAL ENGINEER’S REPORT

FOR THE ANNUAL LEVY

ASSESSMENT LANDSCAPE MAINTENANCE
DISTRICT NO. 86-2
FISCAL YEAR 2023-2024

LANDSCAPE MAINTENANCE DISTRICT NO. 86-2

SANTIAGO HILLS

Intent Meeting: April 25, 2023
Public Hearing: June 13 , 2023

LMD 86-2 Final ER FY 2023-24
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3 Engineer’s Report
City of Orange
Landscape Maintenance District No. 86-2

TABLE OF CONTENTS
AFFIDAVIT FOR THE ENGINEER’S REPORT ........................................................ 2 INTRODUCTION ........................................................................................................... 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 ............................................................................. 16 PART V — ASSESSMENT ROLL .................................................................................. 18

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City of Orange
Landscape Maintenance District No. 86-2

INTRODUCTION
Pursuant to the provisions of the Landscaping and Lighting Act of 1972, being Part 2 o f Division 15 of the California Streets and Highways Code, commencing with Section 22500 (hereafter referred to as the “1972 Act”), and in compliance with the substantive and p rocedural requirements of the California State Constitution Articles XIIIC and XIIID (hereafter referred to as the “California Constitut ion”) , the City Council of the City of Orange, County of Orange, St ate of California (hereafter referred to as “City”), in connection with the annual levy and col lection of assessments of the special benefit assessment district designated as:

Landscape Maintenance District No. 86-2
(hereafter referred to as the “District”), which in cludes 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 annua l assessments on the County tax rolls to provide ongoing funding for the costs and expenses required to service and maintain the landscaping improvements originally installed in connection wit h the development of properties within the District. The improvements to be provided by the Di strict and the assessments described herein are made pursuant to the 1972 Act.

This Report describes the District, the improvement s, and the proposed assessments to be levied in Fiscal Year 2023-2024 against properties in connect ion with the special benefits the properties will receive from the maintenance and servicing of the D istrict 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 impr ovements installed in connection with the development of properties within the District. The assessments described in this Report are based on an estimate of the direct expenditures, incident al 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 (APN) by the Orange County Assessor’s Office. The Orange County Auditor/Controller uses Assessor’s Parcel Numbers a nd specific Fund Numbers to identify properties to be assessed on the tax roll 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 pr oposed budget and assessments for Fiscal Year 2023-2024. The City Council will conduct a noticed public hearing to consider public testimonies, comments and written protests regarding the levy an d collection of assessments for Fiscal Year 2023-2024. Upon conclusion of the public hearing, i f majority protest does not exist the City Council may approve this Report (as submitted or am ended) and levy the assessments for Fiscal Year 2023-2024. In such case, the assessments for f iscal year 2023-2024 shall be submitted to the Orange County Auditor/Controller for inclusion on t he property tax roll for each parcel. If the proposed annual assessments for this District excee d the maximum assessment described herein (as approved by the property owners), the new or increa sed assessment must be confirmed through another property owner protest ballot proceeding before such an assessment may be imposed.

This Report consists of five (5) parts:
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5 Engineer’s Report
City of Orange
Landscape Maintenance District No. 86-2

Part I
Plans and Specifications: A description of the District boundaries and the im provements associated with the District. The District is being formed as a single benefit zone encompassing all properties within the territory identified as Landscape and Maintenance District No 86-2.

Part II
The Method of Apportionment: A discussion of benefits the improvements and servi ces provide to properties within the District and the method of calculating each property’s proportional special benefit and annual assessment.

Part III
The District Budget: An estimate of the annual costs to operate, maintai n and service the landscaping and appurtenant facilities installed an d constructed as part of the development of properties within the District. This budget include s an estimate 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 b enefit. The proposed assessments for Fiscal Year 2023-2024, 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 installments to perform maintenance activities that cannot be reasonably collected in a single fiscal year’s assessments.

Part IV
District Diagram: A Diagram showing the exterior boundaries of the Di strict is provided in this Report and includes all parcels that will receive special benefits from the improvements. 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 amounts to be levied on Assessor’s Parcel within the District for Fiscal Year 2023-2024. The proposed assessment amount for each parcel is based on the parcel’s proportional special benefit as outlined in the method of apportionment. 422
6 Engineer’s Report
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, whic h is on file with the City Clerk of the City of Orange. A reduced scale copy of 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 generally defined by the Landscaping and Lighting Act of 1972 and applicable to this District, the improvements and associated assessments 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 ornamental 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, irrigation systems, sidewalks, and drainage.
b) Lights, playground equipment, play courts, and public restrooms. 5) The maintenance or servicing, of any of the foregoi ng including the furnishing of services and materials for the ordinary and usual maintenance, o peration, 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, trimming, spraying, fertilizing, or treating for disease or injury; d) 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;
f) Electric current or energy, gas, or other illuminating agent for any public lighting facilities or for the lighting or operation 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 improvements including, but not limited to:
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7 Engineer’s Report
City 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 attorney employed to render services; d) Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements;

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 property line, and corner cutoffs at intersections, on the east side from Chapman Avenue to 312 feet south of the centerline of Skylark Place.
• Chapman Avenue - approximately 18-foot wide zone (i ncluding the width of the sidewalk) from the back of the curb to the property line, and corner cutoffs at intersections, on south side from Newport Boulevard to Jamboree Road. • Canyon View Avenue - approximately 30-foot wide zon es (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 sidewalk) from the back of the curb to the property line, and corner cutoffs at intersections, on both sides from Newport Boulevard to Canyon View Avenue. • Trails End Lane - approximately 17-foot wide zone o n the west side and approximately 28- to 32-foot wide zone on the east side (includin g the width of the sidewalks), both zones from the back of the curb to the property lin e, and corner cutoffs at intersections, from White Oak Ridge to Chapman Avenue.
• Handy Creek Corridor - from the intersection of Cha pman Avenue and Newport Boulevard to White Oak Ridge and from White Oak Rid ge to the intersection of Canyon View Avenue and Handy Creek Road (Lot 20, a portion 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 Pa rk to White Oak Ridge and from White Oak Ridge to Old Camp Road (Lots A and B of T ract No. 12417) and approximately 35-foot wide zone from the Paseo to W hite Oak Ridge (Lot C of Tract No. 12417) including surface and subsurface drainag e 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 property line form the end of Handy Creek Corridor (Lot D, Tract No. 12417) near Canyon View Avenue to the northerly terminus of the street.
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Landscape Maintenance District No. 86-2

• Fort Road - approximately 17-foot wide zones (inclu ding the width of the sidewalks) from the back of the curb to the property line on s outh side from White Oak Ridge to Jamboree Road.
• Santiago Canyon Road - approximately 18-foot wide z one (including the width of the sidewalk) 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 fro m 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 (i ncluding the width of the sidewalk) 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-sidewalk) from the back of the curb to the property line on t he west side from Canyon View Avenue to Chapman Avenue.
• Additional Areas - areas adjacent to the 18-foot wi de zones along Skylark Place, Chapman Avenue, and Jamboree Road have been dedicat ed to the City with tracts 12672,12741,12711,15398 and PM 92-195. Such areas h ave 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 B oulevard 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 Chapma n Avenue to Santiago Canyon Road.
c) The following items are excluded from the Maintenance District:
• The 8 +/- acre park is excluded from this Landscape Maintenance District. • Sidewalks along all Maintenance District streets ar e excluded from this Landscape Maintenance District.
• The equestrian trail along Canyon View Avenue is ex cluded from this Landscape Maintenance District.
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City of Orange
Landscape Maintenance District No. 86-2

d) 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, trimming, spraying, fertilizing, and treating for disease or injury; and • the removal of trimmings, rubbish, debris, and other solid waste.

The maintenance of the District improvements genera lly include, but are not limited to all materials, equipment, utilities, labor and incidental expenses including administrative expenses for annual operation of the District as well as the performance of occasional repairs, replacement and expanded maintenance activities associated with those improv ements. Detailed maps and descriptions of the location and extent of the improvements to be maint ained 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 t he improvements within the District shall be allocated to each property in proportion to the spe cial benefits received. The Method of Apportionment described in this Report utilizes commonly accepted assessment engineering practices and has been established pursuant to the 1972 Act and the provisions of the California Constitution. 426
Engineer’s Report
City of Orange
Landscape Maintenance District No. 86-2
10 PART II — METHOD OF APPORTIONMENT
A. General
The 1972 Act permits the establishment of assessmen t districts by agencies for the purpose of providing certain public improvements, which include the construction, maintenance, and servicing 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 amount to be assessed upon lands within an assessment district may be apportioned by any formu la or method which fairly distributes the net amount among all assessable lots or parcels in proportion to th e estimated benefits to be received by each such lot or parcel from the improvements.”

The method of apportionment described in this Repor t for allocation of special benefit assessments utilizes commonly accepted engineering practices and have been established pursuant 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 parcels, 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 c osts and assessments have been carefully reviewed, identified and allocated based on special benefit pursuant to the provisions of the California 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 properties within the District to t heir full potential. As such, the ongoing operation , servicing and maintenance of these improvements would be the financial obligation of those properties.

Therefore, the improvements and the annual costs of ensuring the maintenance and operation of the improvements are 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 s pecial benefits from the improvements and the desirability and security of those properties is enhanced by the presence of well-maintained landscaping in close proximity to those properties.

The special benefits associated with the landscaping and open space improvements are specifically:
• Enhanced desirability of properties through association with the improvements. • Improved aesthetic appeal of properties providing a positive representation of the area and properties.
• Enhanced adaptation of the urban environment 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 ownership of property within the District resulting from well- maintained improvements associated with the properties. 427
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City of Orange
Landscape Maintenance District No. 86-2
11 • Enhanced quality of life through well-maintained green space and landscaped areas. • Reduced criminal activity and property-related crimes (especially vandalism) against properties in the District through well-maintained surrounding s and amenities including abatement of graffiti.
• Enhanced environmental quality of the parcels by m oderating temperatures, providing oxygenation 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 corridors extending through the developed area, which provide access to Santiago Hills Park. The improvements in these areas consist of trees, shrubs, ornamental vegetation, and appurtenant improvements.

The improvements extend throughout the development area and serve several purposes. The landscaped parkways along the streets and highways enhance the public walkways throughout the District and allow pedestrian access to the residents in the area. These parkways also provide passive and active recreational uses as well as the aesthet ic enhancement for the total development area.

Landscaped median islands also provide similar enhancements for the residents in the area.

The landscaped recreation/pedestrian corridors throughout the District provide for open space and recreational uses, which connect to the park site throughout the development area. Besides contributing to the active and passive recreation use in the are a, the corridors 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 number of persons in each dwelling unit on each property. These benefits are direct and special to the properties 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 pr ovide a special enhancement to these properties.

Furthermore, it has been determined that the lack o f funding to properly service and maintain the improvements would likely have a direct negative impact on the properties within the District.

General Benefit
In reviewing the District improvements, the proximity of those improvements to both properties within the District and those outside the District as well as the reasons for installing and constructing suc h 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 improv ements are visible to the public at large, the construction and installation of these improvements were necessary for the development of properties within the District and are not required nor necess arily desired by any properties or developments outside the District boundary and any public access or use of the improvements by others is incidental.

Therefore, it has been determined that the improvements and the ongoing maintenance, servicing and operation of those improvements provide no measurab le general benefit to properties outside the District or to the public at large, but clearly provide distinct and special benefits to properties within the District.
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12 C. Assessment Methodology
The benefit formula used to determine the assessment obligation for each parcel should be based upon both the improvements that benefit the parcels as well as the use of each property as compared to other parcels that benefit from those specific improvements. The method of apportionment established for most benefit assessment districts utilizes a weight ed method of apportionment known as an Equivalent Benefit Unit (EBU) methodology The Equiv alent 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 (“EBU”). Every other la nd use is converted to EBUs based on an assessment formula that equates the property’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 parcel 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 re sidential home site with or without a structure. This land use is assessed 1.0 EBU per lot or parcel. This is the base value that the other land use types are compared and weighted against (i.e. Equivalent Benefit Unit or EBU).

Multi-Family Residential — This land use is defined as a fully subdivided re sidential parcel that has more than one residential unit developed on the property. This land use is assessed 0.6 EBU per dwelling unit.

Mixed Use Property — This land use is defined as property developed fo r either commercial 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 parcels identified as public streets and other roadways (typically not assigned an APN b y the County); dedicated public easements, open space areas and right-of-ways including greenbelts and parkways; utility right-of-ways; common areas, sliver parcels and bifurcated lots or any other pro perty that cannot be developed; park properties and other publicly owned properties that are part of th e District improvements or that have little or no improvement value. These types of parcels are consi dered 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 parcels is not paid by the District but rather from the general fund of the public agency owning the parcel. Therefore, these publicly owned parcels 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 factor applied to that land use type, and the multiplying factor used to calculate each parcel’s individual EBU.
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13 Land Use Codes and Equivalent Benefit Units

Property Type Equivalent Benefit
Unit
Multiplier
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 D istrict is based on the preceding Equivalent Benefit Unit (EBU) table. Each parcel's EBU correla tes the parcel’s special benefit received as compared to the other parcels benefiting from the improvements.

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 imp rovement. An assessment amount per EBU (Rate) for each improvement is established by taking the t otal cost of the improvement and dividing that amount by the total number of EBUs of parcels benef iting from the improvement. This Rate is then applied back to each parcel’s individual EBU to det ermine the parcel’s proportionate benefit and assessment obligation for that improvement.

The Maximum allowable assessment rate of $369.44 EB U (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

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14 PART III — DISTRICT BUDGET
The following budget outlines the estimated costs to maintain the improvements for 2023-2024.

ANNUAL LEVY OF ASSESSMENT
LANDSCAPE MAINTENANCE DISTRICT NO. 86-2
City of Orange

ESTIMATED COSTS

OPERATION & MAINTENANCE FUND BALANCE FROM PRIOR YEA RS
Estimated Fund Balance (Includes 15-1 & 86-2) as of March 2023 $717,598 The estimated budget necessary for the 2023-2024 Fiscal Year for the District is as follows:

BUDGET ITEM COST

ANNUAL MAINTENANCE
Landscaping $391,321
Tree Trimming $175,000
Electrical Maintenance $40,000
Misc. Contract Services $0
Repair/ Maintenance Services $47,051
Supplies $6,400
Other Professional Services $1,000
Telephone $1,000
Electricity $13,000
Water $168,000
Salaries & Benefits $37,027
City Administrative Services $42,994
Capital Replacement/ Dedicated Reserves $0
TOTAL EST. LANDSCAPE MAINTENANCE EXPENDITURES $922, 793

ESTIMATED REVENUE
Landscape Maintenance District No. 86-2 $533,651
Rancho Santiago Community College District $25,106
Proposed Benefit Assessment FY 2023/24 (LMD 15-1)
(See LMD 15-1 Engineer’s Report for specifics)
• CPI Adjustment (Current Year 3.0%)
• Unused CPI Adjustment (Carry over from prior years)

$356,873
$10,706
$0
TOTAL ESTIMATED REVENUE $926,336

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15 SURPLUS FUNDS TO BE ADDED TO RESERVES

$3,543

●This Budget Estimate is for the purpose of establishing an Annual Assessment. It may vary from the adopted City Budge t. All assessments collected by the District may only be used for Dist rict expenditures regardless of the Budget Estimate.

BALANCE TO LEVY $533,651
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16 PART IV — DISTRICT DIAGRAMS
The parcels within the Landscape Maintenance Distri ct No 86-2 consist of all lots, parcels and subdivisions of land located in the planned residential development known as Santiago Hills.

The following diagram incorporates all parcels with in the District, as the same existed at the time this Report was prepared. The combination of this m ap and the Assessment Roll contained in this Report constitute the Assessment Diagram for the Landscape and Maintenance District No. 86-2. 433
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17 434
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18 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 Off ice, as they existed at the time this Engineer’s Report was prepared and the City Council adopted th e Resolution of Intention. A listing of the lots and parcels to be assessed within this District along with the assessment amounts is provided herein.

If any parcel submitted for collection is identifie d by the County Auditor/Controller to be an invalid parcel number for the fiscal year, a corrected parc el number and/or new parcel numbers will be identified and resubmitted to the County Auditor/Co ntroller. 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 app roved by the City Council. Therefore, if a single parcel is subdivided to multiple parcels, the asses sment 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 2023-2024 for each of the parcels within the District as dete rmined by the assessment rates and method of apportionment described herein:
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Landscape Maintenance District No. 15-1
1 CITY OF ORANGE
FINAL ENGINEER’S REPORT

FOR THE ANNUAL LEVY

ASSESSMENT LANDSCAPE MAINTENANCE
DISTRICT NO. 15-1
FISCAL YEAR 2023-2024

LANDSCAPE MAINTENANCE DISTRICT NO. 15-1

SANTIAGO HILLS

Intent Meeting: April 25, 202 3
Public Hearing: June 13 , 202 3

LMD 15-1 Final ER FY 2023-24
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TABLE OF CONTENTS
AFFIDAVIT FOR THE ENGINEER’S REPORT .................................................. 2 INTRODUCTION ..................................................................................................... 4 Overview ..................................................................................................................................... 4 District’s Facilities ..................................................................................................................... 4 Assessment Background ........................................................................................................... 4 PLANS & SPECIFICATIONS ................................................................................... 5 FISCAL YEAR 2023-24 ESTIMATE OF COST AND BUDGET ............................. 8 Budget for Fiscal Year 2023-24 ............................................................................................... 8 METHOD OF APPORTIONMENT ...................................................................... 10 Method of Apportionment .................................................................................................... 10 Discussion of Benefit .............................................................................................................. 10 Benefit Factors ......................................................................................................................... 11 Benefit Finding ........................................................................................................................ 14 Zones of Benefit ...................................................................................................................... 17 Method of Assessment ........................................................................................................... 18 Residential Properties ............................................................................................................. 19 Commercial Properties ........................................................................................................... 20 Vacant/Undeveloped Properties........................................................................................... 21 Other Properties ...................................................................................................................... 21 Annual Cost Indexing ............................................................................................................. 22 Appeals of Assessments Levied to Property ....................................................................... 22 Assessment Funds Must Be Expended Within the District Area .................................... 23 ASSESSMENT .......................................................................................................... 24 ASSESSMENT DIAGRAM ...................................................................................... 25 ASSESSMENT ROLL .............................................................................................. 27

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INTRODUCTION
Overview
The City of Orange (the “City”) services and maintains perimeter and median landscaping, interior walkways and paseos, and other improvements (“Impro vements”) in the Santiago Hills neighborhoods in the eastern part of the City. This Engineer’s Report ("Report") was prepared to establish the budget for the Improvements (as descr ibed below) that will be funded by the new 2023-2024 assessments, if approved, and other reven ue, to determine the general and special benefits received from the Improvements by property within the Improvement District (“District”), and to determine the method of assess ment apportionment to lots and parcels. This Report and the assessments have been made pursuant to the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Stree ts and Highways Code (the "Act") and Article XIIID of the California Constitution (the “Article”).

Landscape Maintenance District (LMD) No. 15-1 was f ormed in 2015. This assessment district is identical to the existing Landscape Maintenance Dis trict No. 86-2 in its geographic boundaries, parcels to be assessed, Improvements to be serviced , maintained, or repaired and budgeted cost centers. The assessments collected, if approved, wi ll be in addition to those collected for Landscape Maintenance District 86-2.

District’s Facilities
The City’s landscape facilities to be funded by ass essments within this District are located in the Santiago Hills neighborhoods of the City. The Impro vements generally include entrance signs, traffic islands and medians, parkways, recreation a reas, paseos, lighting, and the infrastructure required to support these Improvements.

Assessment Background
The City formed Landscape Maintenance District No. 86-2 in 1987 to service and maintain the specific landscape facilities and improvements rele vant to this report. Revenues from that district remain relatively flat, there is not an inflation a djustment 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 cos ts within available revenues. The service levels continued to decrease to offset the effects of risi ng 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 exactly overlaid the existing assessment district, was formed. 439
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PLANS & SPECIFICATIONS
The City maintains landscaping and other improvemen ts in locations within the proposed Assessment District’s boundaries. The work and impr ovements proposed to be undertaken by the Landscape Maintenance District No. 15-1 and the cos t 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 definition s 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 corner) • Newport Boulevard at Canyon View Avenue (northeast corner) 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 sidewalk) from the back of the curb to the property line, and corner cutoffs at intersections, 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 (i ncluding 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.
• Canyon View Avenue – approximately 30-foot wide zon e (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 zone ( 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 Canyon View Avenue.
• Trails End Lane – approximately 17-foot wide zone o n the west side and approximately 28- to 32-foot wide zone on the east side (including th e width of the sidewalk), both zones from the back of the curb to the property line, and corn er cutoffs at intersections, from White Oak Ridge to Chapman Avenue.
• Handy Creek Corridor – from the intersection of Cha pman Avenue and Newport Boulevard to White Oak Ridge, and from White Oak Ridge to the intersection of Canyon View Avenue and Aspen Street (Lot 20, a portion of Lot 11, and Lot D of Tract 12417) including concrete walkways which also serve as emergency access ways.
• Paseo – approximately 50-foot wide zone from Santia go Hills Park to White Oak Ridge and from White Oak Ridge to Old Camp Road (Lots A and B of tract No. 12417) and approximately 35-foot wide zone from the Paseo to W hite Oak Ridge (Lot C of Tract No. 12417) including surface and subsurface drainage fa cilities and concrete walkways which also serve as emergency access ways.
• Aspen Street – approximately 10-foot wide zone (inc luding the width of the sidewalk) on south side from the back of the curb to the propert y line from the end of Handy Creek 440
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Corridor (Lot D, Tract No. 12417) near Canyon View Avenue to the northerly terminus of the street.
• Fort Road – approximately 17-foot wide zone (includ ing the width of the sidewalk) from the back of the curb to the property line on south side from White Oak Ridge to Jamboree Road.
• Santiago Canyon Road – approximately 18-foot wide z one (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 (in cluding the width of the sidewalk) from the back of the curb to the property line on both s ides from White Oak Ridge to Newport Boulevard.
• Jamboree Road – variable width zone (including widt h of the bike trail-sidewalk) from back of the curb to the property line on the west side f rom Canyon View Avenue to Santiago Canyon Road.
• Additional Areas – areas adjacent to the 18-foot wi de zones along Skylark Place, Chapman Avenue, and Jamboree Road have been dedicated to th e City with tracts 12672, 12741, 12711, 15398 and PM 92-195. Such areas have been la ndscaped by the developers 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 Chapma n 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 City’s public safety facility on East Fort Road is excluded from this District • Chapman Hills Elementary School is excluded from this District • Santiago Canyon College is excluded from this Distr ict (Note that while some public improvements along the College frontage are maintained along with District Improvements, the College pays directly into the District’s fund to compensate for that work) • 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 441
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lots, drainage systems, lighting, fencing, entry mo numents, recreational facilities, security patrols to protect the Improvements, graffiti removal and repa inting, and labor, materials, supplies, utilities and equipment, as applicable, at each of the locati ons owned, operated or maintained by the District.

As applied herein, “Installation” means the constru ction of Improvements, including, but not limited to, land preparation (such as grading, leve ling, cutting and filling), sod, landscaping, irrig ation systems, walkways and drainage, lights, and recreational facilities. “Maintenance” means the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of any Improve ment, including repair, removal or replacement of all or any part of any Improvement; providing fo r the life, growth, health, and beauty of landscaping, including cultivation, irrigation, tri mming, spraying, fertilizing, or treating for disea se or injury; the removal of trimmings, 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 furnishing of electric curren t, or energy, gas or other illuminating agent for any public lighting facilities or for the lighting or operation of any other Improvements; or water fo r the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other Improvements.

Incidental expenses include all of the following: ( a) The costs of preparation of the report, includin g plans, specifications, estimates, diagram, and Asse ssment; (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; (d) compensation of any engineer or attorney employed to render services in proceedings pursuant to this part; (e) any other expenses incidental to the construction, installation, or maintenance and servicing of the I mprovements; (f) any expenses incidental to the issuance of bonds or notes pursuant to Streets & Hi ghways 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 inclu de, 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 annexati on or detachment of specific parcels, revisions in the method of apportionment, or proposed new or increased assessments.

The Assessment proceeds will be exclusively used fo r Improvements within the District plus incidental expenses.
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FISCAL YEAR 2023-24 ESTIMATE OF COST AND BUDGET
Budget for Fiscal Year 2023-24
The following budget shows the cost of the Improvem ents that would be funded by the District in Fiscal Year 2023-24. This table shows the total com bined expenditures associated with the Improvements for both Landscape Maintenance Distric ts (No. 15-1 and No. 86-2). Accordingly, revenues from both Districts are also shown.

BUDGET ITEM COST

$356,873
$10,706
$0
TOTAL ESTIMATED REVENUE $926,336

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SURPLUS FUNDS TO BE ADDED TO RESERVES

$3,543
District Expenditures will be adjusted to match the maximum allowable assessment.

●This Budget Estimate is for the purpose of establis hing an Annual Assessment. It may vary from the adopted City Budge t. All assessments collected by the District may only be used f or District expenditures regardless of the Budget Estimate.

BALANCE TO LEVY $367,579

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 o f the District. Moreover, funds raised by the Assessment shall be used only for the purposes stat ed within this Report. Any balance remaining at the end of the Fiscal Year, June 30, must be carrie d over to the next Fiscal Year. The District may also establish a dedicated reserve fund for conting encies 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 eithe r 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 $ 356,873 plus the value of the general benefit contributions from the City described in the section titled, “Method of Assessment Apportionment.”

4. The Assessment allows for an annual adjustment tied to the Consumer Price Index (the “CPI”), as detailed in the section titled “Method of Apport ionment – Annual Cost Indexing.” For Fiscal Year 2023-2024, the CPI is 4.9% for the Los Angeles -Long Beach-Anaheim area as of December 2022. Due to the remaining fund balance from Fiscal Year 2022-23, the Community Services Department staff recommends setting the CPI adjustm ent at 3.0% (maximum allowed) for Fiscal Year 2023-2024.
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10 Enhanced Level
of Service + Baseline Level
of Service = Final Level
of Service

METHOD OF APPORTIONMENT
Method of Apportionment
This section of the Engineer's Report explains the benefits to be derived from the Improvements 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 benefits 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 apport ioned 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 first step is to identify the types of special benefit arising from the Improvements and the second step is to allocate the Assessments to p roperty based on the estimated relative special benefit for each type of property.

This section of the Engineer’s report includes a di scussion of the benefits to be provided by the proposed Improvements and the method of apportionme nt of assessments within the District. The formula below identifies the final level of service as the sum of the baseline level of service (witho ut this proposed Assessment) and the enhanced level of service to be funded by the proposed Assessment.

Discussion of Benefit
In summary, the Assessments can only be levied base d 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 amount to be assessed upon lands within an assessment district may be apportioned by any formu la or method which fairly distributes the net amount among all assessable lots or parcels in proportion to th e estimated benefits to be received by each such lot or parcel from the improvements." Proposition 218, as codified in Article XIIID of th e 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 assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional spe cial benefit conferred on that parcel."
The following benefit categories summarize the type s of special benefit to residential, commercial, industrial and other lots and parcels resulting fro m the Improvements to be provided with the assessment proceeds. These types of special benefits are summarized as follows:

A. Proximity to Improved Landscaped Areas and Other Public Improvements within the District.

B. Access to Improved landscaped areas and Other Publi c Improvements within the District. 445
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11 C. Improved Views within the District.

D. Extension of a property’s outdoor areas and green s paces for properties within close proximity to the Improvements.

E. Creation of individual lots for residential and com mercial use that, in absence of the Assessments, would not have been created.

In this case, the recent Silicon Valley Taxpayers Association, Inc. v. Santa Clara County Open Space Authority (SVTA) decision in 2008 provides enhanced clarity to the d efinitions 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 d erivative advantages resulting from the overall public benefits from a service or improvement are g eneral benefits. The SVTA decision also provides specific guidance that Improvements are a direct advantage and special benefit to property that is proximate to a facility that is improved by an assessment:

The characterization of a benefit may depend on whet her the parcel receives a direct advantage from the improvement (e.g. proximity to a park) or receives a n indirect, derivative advantage resulting from the overall public benefits of the improvement (e.g. general enhancement of the district’s property values).

Proximity, improved access and views, in addition t o the other special benefits listed herein further strengthen the basis of these Assessments.

Moreover, the Dahms v. Downtown Pomona Prop. & Bus. Improvement Dist . ( Dahms) decision in 2009 further clarified that certain services and Improve ments funded by assessments, that are over and above what otherwise would be provided and that oth er property in general and the public do not share or receive are 100% special benefit. The assessment-funded services upheld by Dahms included streetscape maintenance and security services.

Benefit Factors
The special benefits from the Improvements are further detailed below:

Proximity to Improved Landscaped Areas within the District The boundaries of the District were developed in co njunction and concurrent with the planning and design of the subdivisions and Improvements, and th us have been carefully drawn to only include the properties in the City of Orange that are proxi mate to the Improvements and that would materially benefit from the Improvements. In other words, the District has been narrowly drawn to include the properties that receive special benefit s from the Improvements. Therefore, property in the District enjoys unique and valuable proximity t o the Improvements that the public at large and property outside the District do not share.

In the absence of the Assessments, the Improvements would not be provided and the public improvements funded in the District would be degrad ed due to insufficient funding for maintenance, upkeep and repair. Therefore, the Asse ssments provide Improvements that are over and above what otherwise would be provided. Improve ments that are over and above what otherwise would be provided do not by themselves tr anslate into special benefits but when

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12 combined with the unique proximity and access enjoy ed 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 on ly 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 property in the District.

Improved Views within the Assessment Districts
The City, by maintaining permanent public improveme nts funded by the Assessments 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 provide d by the Assessments are another direct and tangible advantage that is uniquely conferred upon property in the District.

Extension of a Property’s Outdoor Areas and Green Space s for Properties within Close Proximity to the Improvements
In large part because it is cost prohibitive to pro vide large open land areas on property in the District, the residential, commercial and other ben efiting properties in the District do not have larg e outdoor areas and green spaces. The Improvements wi thin the District provide additional outdoor areas that serve as an effective extension of the l and 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 important, valuable and desirable extension 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 Commerci al Use that, in Absence of the Assessments, Would Not Have Been Created
In most of the District, the original owner/develop er(s) of the property within the District agreed unanimously to the Assessments. The Assessments pro vide the necessary funding for public improvements that were approved as a condition of d evelopment and subdivision approval.

Therefore, such Assessments allowed the original pr operty to be subdivided and for development of the parcels to occur. As parcels were sold, new own ers were informed of the Assessments through the title reports, and in some cases, through Depar tment 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 Assess ments, 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. 447
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13 Special
Benefit +
General
Benefit =
Total
Benefit

Summary of Relative Weight of Benefit Factors
A solid argument could be made that the Creation of Individual Lots benefit comprises 100% of the benefit because the Improvements were incorporated into the original planning and design of the subdivision, and thus were deemed to be necessary a nd required for the development of the lot.

Without those Improvements and associated benefit, the lots would not have been created in the first place. Nevertheless, four other definitive be nefits 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

Proximity

Relative Weight

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 requir es any local agency proposing to increase or impose a benefit assessment to “separate the genera l 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 fo r general benefits. An assessment can fund special benefits but cannot fund general benefits. Accordin gly, a separate estimate of the special and general benefit is given in this section.

In other words:

There is no widely-accepted or statutory formula fo r 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 properties. SVTA provides some clarification by indicating that general benefits provide “an ind irect, derivative advantage” and are not necessaril y proximate to the improvements.

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.
448
Engineer’s Report
City of Orange
Landscape Maintenance District No. 15-1
14 Benefit
+ to the
Public
at Large
Benefit to Real
Property Inside
the Assessment
District that is
Indirect and
Derivative
+
Benefit to Real
Property
= Outside the
Assessment
District
General
Benefit

The starting point for evaluating general and speci al benefits is the current, baseline level of servi ce.

The Assessment will fund Improvements “over and abo ve” 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:

Special benefit, on the other hand, is defined in t he state constitution as “a particular and distinct benefit over and above general benefits conferred o n real property located in the district or to the public at large.” The SVTA decision indicates that a special benefit is confer red to a property if it “receives a direct advantage from the improvement ( e.g., proximity to a park).” In these Assessments, as noted, properties in the District h ave close and unique proximity, views and access to the Improvements and uniquely improved desirabil ity from the Improvements and other properties and the public at large do not receive s ignificant benefits because they do not have proximity, access or views of the Improvements. The refore, the overwhelming proportion of the benefits conferred to property is special, and is o nly minimally 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 landscapi ng and other types of Improvements 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 o f the special benefits from the Improvements because properties in the District enjoy unique clo se proximity and access to the Improvements that are not enjoyed by other properties or the public a t large. However, certain properties within the proximity/access radius of the Improvements, but ou tside of the boundaries of the District, may receive some benefit from the Improvements. Since t his benefit is conferred to properties outside the District boundaries, it contributes to the over all general benefit calculation and will not be funded by the Assessments. The general benefit to p roperty outside of the District is calculated with the parcel and data analysis performed by SCI Consulting Group.

Since the properties outside the District but with frontage abutting the Improvements receive benefit but cannot be assessed by the District, thi s is a form of general benefit to other property.

The primary ways that parcels outside the district benefit by the Improvements is from proximity, 449
Engineer’s Report
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Landscape Maintenance District No. 15-1
15 Assumptions:
47 parcel outside the District
1517 parcels in the District
Calculation:

General Benefit to property outside the
District =
47/(47+1517) * 40% = 1.20%

access, views and extension of outdoor space, which account for 40% of the available benefit.

Therefore, parcels that abut the landscape areas an d 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.

Benefit to Property Inside the Assessment Districts that is Indirect and Derivative The “indirect and derivative” benefit to property w ithin 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 “part icular 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 SVTA decision indicates there may be general benefit “co nferred 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 tha t is publicly owned and used for regional purposes such as major roads, rail lines and other regional facilities because such properties used for regiona l purposes could provide indirect benefits to the pub lic at large. Approximately 7.15% of the land area in the District is used for such regional purp oses, so this is a measure of the general benefits to property within the District.

Benefit To The Public At Large
The general benefit to the public at large can be e stimated by the proportionate amount of time that the District’s Improvements including landscaping a re used and enjoyed by individuals who are not residents, employees, customers 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 gener al public is by the car trips through an area with Improvements. Of the five ways benefits are conferr ed (proximity, access, views, extension of a property’s green space, and creation of lots), the only benefit that is conferred by way of pass-by ca r trips is views, which accounts for 10% of the total benefits. For pass-by car trips, the benefit of views is found to be approximately half that of res idents, employees, customers or property owners in the District due to the brevity of the views. Therefore the relative benefit factor is reduced to 5%. 450
Engineer’s Report
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Landscape Maintenance District No. 15-1
16 1.16%

11.31% 11.3% = 10.0%
= 11.6%

21.6% TOTAL GENERAL BENEFIT
100.0% x 11.6% Out -of -District General Benefits
Property within the District 7.15%
Public at Large 3.00%
Total In -District 11.35% 11.4% x 88.4%

1.20%
In -District General Benefits
Outside the District
Relative Percent of
General Overall General
Benefit Benefit Benefit

Next, the views factors are weighted by the relevan t number of car trips. Using the lane miles as representative of pass-by traffic, an analysis show s that 60% of the lane miles are on arterial or collector streets where the general public has view s 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 benefits are categorized into to two geographic groupings of Improvements: In-District Improvements that include parkways, medians and pas eos that are either inside the district boundaries, or are traffic medians that directly ab ut 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 Dis trict. Based on weighted square footage of the various types of Improvements, Out-of-District Impr ovements count for approximately 11.6% of the total benefits. These Out-of-District benefits are found to be entirely General Benefit. For example some Improvements at Santiago Canyon Colleg e are maintained, but the funding for this work comes entirely from the College as general benefit funds.

The In-District Improvements, conversely, provide a pproximately 88.4% of the total benefits. The general benefits provided by these Improvements are discussed above.

Total General Benefits
Using a sum of these three measures of general bene fit plus the special considerations of general benefit from Out-of-District benefits (both weighted accordingly), we find that approximately 21.6% of the benefits conferred by the Improvements may b e general in nature and should be funded by sources other than the Assessment. This calculation is shown below.

Although this analysis finds that 21.6% of the Asse ssment may provide general benefits from the Improvements, the Assessment Engineer establishes a requirement for a minimum contribution from sources other than the Assessments of 22%. Thi s minimum contribution above the measure of general benefits will serve to provide additional coverage for any other general benefits.

Final Step – Calculate the Current General Benefit Contribution from the City 451
Engineer’s Report
City of Orange
Landscape Maintenance District No. 15-1
17 This general benefit cannot be funded from the Asse ssments; it must be funded from other sources such as the City’s General Fund or other non-Distri ct funds. These contributions can also be in the form of in-lieu contributions to the installation a nd maintenance of the Improvements such as other City assets that support and protect the Improvemen ts. The City of Orange will contribute both monetary and in-lieu resources to ensure that the g eneral benefits conferred by the proposed Improvements are not funded by the District’s property owners.

A summary and quantification of these other contributions from the City is discussed below:

The City of Orange owns, maintains, rehabilitates a nd replaces curb and gutter along the border of the District Improvements. This curb and gutter ser ves to support, contain, retain, manage irrigation flow and growth, and provide a boundary for the Improvements. The contribution from the City towards general benefit from the maintenan ce, 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 Improvements. This system serves to prevent floodin g and associated damage to the Improvements, and manage urban runoff including local pollutants loading from the Improvements.

The contribution from the City towards general bene fit 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 al ong the border of the District Improvements.

These public streets provide access to the Improvements for residents’ enjoyment as well as efficient maintenance. The contribution from the City towards general benefit from the maintenance of local public streets is conservatively estimated to be 5%.

The value of the construction of the Improvements c an be quantified and monetized as an annuity.

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 a t 22% which is entirely offset by the conservativel y quantified total non-Assessment contribution toward s general benefit described above of 25%.

Therefore, no additional General Benefit must be funded by the City.

Zones of Benefit
The boundaries of the District were developed in co njunction and concurrent with the planning and design of the subdivisions and Improvements, and th us include only the properties in the City of Orange that are proximate to the Improvements and t hat would materially benefit from the Improvements. Certain other properties surrounding the District were not part of the designed association between the Improvements and the assess ed areas, and are generally less proximate to the Improvements. In other words, the boundaries of the District have been narrowly drawn to include only properties that will specially benefit from the Improvements, and would receive a declining level of service if the Assessments were not approved.

The SVTA decision indicates:

In a well-drawn district — limited to only parcels r eceiving special benefits from the improvement — ev ery parcel within that district receives a shared special benef it. Under section 2, subdivision (i), these benefit s can be construed as being general benefits since they are not “particular and distinct” and are not “over and above” the benefits received by other properties “located in the district.” 452
Engineer’s Report
City of Orange
Landscape Maintenance District No. 15-1
18 We do not believe that the voters intended to inval idate an assessment district that is narrowly drawn t o include only properties directly benefiting from an improve ment. Indeed, the ballot materials reflect otherwise . Thus, if an assessment district is narrowly drawn, the fact that a benefit is conferred throughout the district does not make it general rather than special. In that circumstance, the characterization of a benefit may depend on whet her the parcel receives a direct advantage from the improve ment (e.g., proximity to park) or receives an indire ct, derivative advantage resulting from the overall public benefit s of the improvement (e.g., general enhancement of the district’s property values).

In the District, the advantage that each parcel rec eives from the Improvements is direct, and the boundaries are narrowly drawn to include only parce ls that benefit from the Assessment. Therefore, the even spread of Assessment throughout the narrow ly drawn district is indeed consistent with the SVTA decision. For the most part, the benefits from the Improvements within the District do not vary further based on proximity of the parcels to t he Improvements because the increased benefits of greater proximity to the Improvements are genera lly 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 Dis trict: Santiago Hills and Hillsdale. Santiago Hills is a complex neighborhood with arterial and c ollector streets 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 Driv e) with Improvements along only one exterior frontage (Santiago Canyon Road).

In order to most conservatively assure that Assessm ents are proportional to the relative level of special benefits in the District, two zones have be en 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”) consists of all the pa rcels that lie within the Hillsdale neighborhood lying generally north of Santiago Canyon Road. A de tailed 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 Hillsdale neighborhood (Zone B) rece ives approximately 75% as much special benefit as the Santiago neighborhood (Zone A). Ther efore 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 w ill provide comprehensive Improvements that will clearly confer special benefits to properties in the District. The allocation of special benefits to property is partially based on the type of property and the size of property. These benefits 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 parc el receives from the Improvements. It should be noted that many other types of “traditional” assess ments also use parcel population densities to apportion the Assessments. For example, the assessm ents for sewer systems, roads and water systems are typically allocated based on the popula tion 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.
453
Engineer’s Report
City of Orange
Landscape Maintenance District No. 15-1
19 The next step in apportioning Assessments is to det ermine the relative special benefit for each property. This process involves determining the rel ative benefit received by each property 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 Asse ssments in proportion to estimated special benefit and is generally recognized as providing th e basis for a fair and appropriate distribution of Assessments. For the purposes of this Engineer’s Re port, all properties are designated a SFE value, which is each property’s relative benefit in relati on 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 asse ssed, because commercial and other properties may also receive direct benefits from the Improvements, and will be assessed.

A fixed or flat Assessment is proposed for all sing le family residential properties regardless of occupancy or parcel size. Assessments on multi-fami ly residential parcels vary based on the number of dwelling units. Assessments on commercial proper ty are levied on an acreage basis because larger properties generally support larger buildings and h ave higher numbers of employees, customers and guests who would benefit from proximity and improve d access to well-maintained and improved landscaping.

Finally, the special benefits to be derived from th e proposed Assessments will be conferred on property and are not based on a specific property o wner’s use of the improvements, a specific property owner’s occupancy of property, or the prop erty owner’s demographic status such as age or number of dependents. The benefits conferred to pro perty are related to the average number of people who could potentially live on, work at, or o therwise could occupy a property, not how the property is currently used by the present owner. Th erefore, 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 t hat the appropriate method of assessment apportionment should be based on the type of proper ty, the relative size of the property, property 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. D etached or attached houses and zero-lot line houses are included in this category of single fami ly residential property. If there is more than one single family detached dwelling on a parcel, it wil l be charged one SFE per single family detached dwelling.

Properties with more than one residential unit (oth er than parcels with more than one detached single family dwelling as described above) are designated as multi-family residential properties. These properties benefit from the Improvements in proport ion to the number of dwelling units that occupy each property, the average 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 d welling unit (Square Foot Factor). The population density factors for the area in Orange County encom passing the District, as depicted in the following table, provide the basis for determining 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 454
Engineer’s Report
City of Orange
Landscape Maintenance District No. 15-1
20 dividing it by the total number of such households, finds that approximately 3.21 persons 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 eq uivalent of 0.91 for condominiums. Next, 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 populati on densities. For a condominium, this calculation results in an SFE factor of 0.71 per dwelling unit.

Table 1 – Residential Density and Assessment Factors

Type of Residential Property
Pop. Density
Equivalent
SqFt
Factor
SFE
Factor

Single Family Residential

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 th e equivalence of special benefit on a land area basis between single family residential property an d 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 previ ously can be measured by the average number of people who work at commercial properties.

In order to determine employee density factors, the findings from the San Diego Association of Governments Traffic Generators Study (the “SANDAG S tudy”) are used because these findings were approved by the State Legislature as being a g ood representation of the average number of employees per acre of land area for commercial prop erties. As determined by the SANDAG Study, the average number of employees per acre for general commercial property is 24.

In comparison, the average number of people residin g 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 properti es 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 2 below shows the average employees per acre of land area or portion thereof for various types of commercial properties and lists the relative SFE fa ctors per 0.12 acre for properties in each land use category.
455
Engineer’s Report
City of Orange
Landscape Maintenance District No. 15-1
21 Commercial properties in excess of 5 acres generall y 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 determined 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

Type of Commercial Land Use
Average
Employees
per Acre 1
SFE Unit
per

0.12 Acre
s

2 General Commercial

24 0.500
Office 3 68 1.420
Shopping Center 24 0.500

1. Source: San Diego Association of Governments Traffic Generators Study.

2. The SFE factors for commercial and industrial parce ls are applied by the 0.12 acre of land area or portion thereof. (Therefore, the minimum 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 i s benefited at the rate shown above per acre or portion thereof.

3. Currently there are no parcels in the District in t he 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 determined 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 accruing to the underlying land is the average value of land in relation to Improvements for developed prop erty. An analysis of the assessed valuation data from the County of Orange found that approximately 55% of the assessed value of improved properties is classified as the land value. It is r easonable to assume, therefore, that approximately 55% of the benefits are related to the underlying l and and 45% are related to the improvements and the day-to-day use of the property. Using this rati o, the SFE factor for vacant/undeveloped parcels is 0.55 per parcel.

Other Properties
Article XIIID stipulates that publicly owned proper ties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the Assessment.

All properties that are specially benefited are ass essed. Certain other publicly owned property that lie within the District boundaries, including Santiago Canyon College, Chapman Hills Elementary School, Santiago Hills Park, and City of Orange pub lic safety facility on East Fort Road, are not assessed. These are discussed below.

Santiago Canyon College: The College lies within th e District and certain Improvements lie on their property. Although the College is not assessed in this District, the College pays for any special 456
Engineer’s Report
City of Orange
Landscape Maintenance District No. 15-1
22 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 Elementary School: Any special benefi t attributable to the School buildings and parking lots are entirely offset by the benefit pro vided to the neighborhood by the outdoor fields.

This facility was also included in the list of regi onal facilities in the calculation of general benef it to properties inside the district that is indirect and derivative above.

Santiago Hills Park: Any special benefit attributab le to the Park is entirely offset by the benefit provided to the neighborhoods by park facilities. T his facility was also included in the list of regional facilities in the calculation of general b enefit to properties inside the district that is in direct and derivative above.

City of Orange 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 road s, right-of-way parcels, and common areas typically do not generate significant numbers of em ployees, residents, customers or guests, and have limited economic value. These miscellaneous parcels receive minimal, if any, benefit from the Improvements and are assessed an SFE benefit factor of zero SFEs.

Annual Cost Indexing
The Assessment is subject to an annual adjustment t ied to the Consumer Price Index-U for the Los Angeles-Long Beach-Anaheim area as of December of e ach succeeding year (the “CPI”), with a maximum annual adjustment not to exceed 3%. Any cha nge in the CPI in excess of 3% shall be cumulatively reserved as the “Unused CPI” and shall be used to increase the maximum authorized assessment rate in years in which the CPI is less t han 3%. The maximum authorized assessment rate is equal to the maximum assessment rate in the firs t fiscal year the Assessment was levied adjusted annually by the minimum of either 3% or the change in the CPI plus any Unused CPI as described above.

Appeals of Assessments Levied to Property
Any property owner who feels that the Assessment le vied on the subject property is in error as a result of incorrect information 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 t hen-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 property owner. If the City Manager or his or her designee finds that the Assessment should be modified, the a ppropriate 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 h er 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.
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Engineer’s Report
City of Orange
Landscape Maintenance District No. 15-1
23 Assessment Funds Must Be Expended Within the District Area The net available Assessment funds, after incidenta l, administrative, financing and other costs shall be expended exclusively for Improvements within the boundaries of the District or as described herein, and appropriate incidental and administrati ve costs as defined in the Plans and Specifications section.
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Engineer’s Report
City of Orange
Landscape Maintenance District No. 15-1
24 ASSESSMENT
The amount to be paid for said Improvements and the expense incidental thereto, to be paid by the District for the Fiscal Year 2023-24 is generally as follows:

Table 3 – Summary Cost Estimate
For Landscape Maintenance District No. 15 -1
For Fiscal Year 2023-24

BUDGET ITEM COST

ANNUAL MAINTENANCE
Operating Expenses

$842,772
Salaries & Benefits $37,027
Administration and Project Management $42,994
Capital Expenses/ Revenues $0
Total for Services $922,793
Less Other Revenue ($558,757)
Reserve Funds $3,543

Net Amount of Assessment $367,579
As required by the Act, an Assessment Diagram showi ng the exterior boundaries of the Improvement District is hereto attached and incorpo rated herein by reference. The distinctive number of each parcel or lot of land in the Distric t is its Assessor Parcel Number appearing on the Assessment Roll.
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Engineer’s Report
City of Orange
Landscape Maintenance District No. 15-1
25 ASSESSMENT DIAGRAM
The parcels proposed to be assessed in Landscape Ma intenance 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 t he District are those lines and dimensions as shown on the maps of the Assessor of the County of Orange, for Fiscal Year 2023-24, and are incorporated herein by reference, and made a part of this Diagram and this Report. 460
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Landscape Maintenance District No. 15-1
26 461
Engineer’s Report
City of Orange
Landscape Maintenance District No. 15-1
27 ASSESSMENT ROLL
An Assessment Roll (a listing of all parcels assess ed within the Assessment District and the amount of the Assessment) will be filed with the City Cler k and is, by reference, made part of this Report and is available for public inspection during norma l office hours at the City Hall at 300 East Chapman Avenue, Orange, California 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 referenc e made part of this Report. These records shall govern for all details concerning the description of the lots or parcels. 462
Agenda Item
City Council
Item #: 8.2. 6/13/2023 File #: 23-0320
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Public Hearing to consider approval of the Landscape Maintenance District 94-1 (Sycamore Crossing) Final Engineer’s Report for Fiscal Year 2023-2024. Resolution No. 11465.

2. SUMMARY
Resolution 11465 is the second step and will complete the process of the annual assessment for Landscape Maintenance Assessment District 94-1 (Sycamore Crossing). Staff recommends no increase in the assessments for Fiscal Year 2023-2024 and that they remain $293.08 per unit. The total assessment to be levied in Landscape Maintenance Assessment District 94-1 (Sycamore Crossing) will be $47,877.

3. RECOMMENDED ACTION

1. Adopt Resolution No. 11465. A Resolution of the City Council of the City of Orange approving the Engineer’s Report and providing for the annual assessment for Landscape Maintenance District 94-1 (Sycamore Crossing).

2. Establish the assessment for Fiscal Year 2023-2024 for Landscape Maintenance Assessment District 94-1 (Sycamore Crossing) at $293.08 per single family unit per year.

4. FISCAL IMPACT
The total expenditure for this assessment is $46,538 and will be funded through Sycamore Crossing Landscape Maintenance District (293).

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 1995, Landscape Maintenance District No. 94-1 (LMD 94-1) was established to maintain the landscape and flood control improvements along Santiago Creek that were constructed by Tract No. 14752 (Sycamore Crossing). Resolution No. 8462 approved Conditional Use Permit 2088-94 for Tentative Tract 15053 (Sycamore Crossing) and Resolution No. 8463 approved Tentative Tract Map 15053, which is part of Tract 14751.

Annually, staff performs a detailed accounting of expenses and calculates a new assessment for the benefiting property owners. All assessments are recommended to remain the same for Fiscal Year 2023-2024 (FY24) as they are for the current fiscal year. The 124 units in the interior of the Tract are City of Orange Printed on 6/7/2023Page 1 of 2
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463
Item #: 8.2. 6/13/2023 File #: 23-0320
2023-2024 (FY24) as they are for the current fiscal year. The 124 units in the interior of the Tract are currently assessed annually at $293.08. The 36 units adjacent to the landscape improvement have a 2% premium and are currently assessed at $298.94 per unit, per year. The senior housing site (Harmony Creek) is currently assessed at $597.88 per year. In addition, the City owns two lots within the district that pay into the District. The larger lot which remains as open space is assessed at $117.23 per year and the smaller lot for a future water well is $58.62 per year.

The total expenditure for FY24 is estimated to be $46,538. The proposed assessment will generate $47,877 in revenue. The projected year-end Reserve fund balance is $109,284 and the District is funded entirely by annual assessment revenue. The surplus revenue is $1,339 and will contribute to the fund balance to be used for future repairs and replacement of infrastructure such as fences, irrigation, and landscape.

The attached Final Engineer’s Report contains detailed information about the assessment.

Each year, the process for setting the assessment of the Landscape Maintenance Districts is initiated. The process began on April 25, 2023 with the City Council’sApproval of Resolution No. 11450 which approved the Preliminary Engineer’sReport for LMD 94-1 and set June 13, 2023 as the date for the public hearing. This public hearing is the second step in the process and is held in accordance with the Lighting and Landscape Maintenance Act of 1972 as outlined in the “Order of Procedure”. At this time, property owners will have an opportunity to be heard on this issue.

7. ATTACHMENTS
· Resolution No. 11465
· Final Engineer’s Report - Landscape Maintenance District 94-1 City of Orange Printed on 6/7/2023Page 2 of 2
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Agenda Item
City Council
Item #: 8.2. 6/13/2023 File #: 23-0320
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Public Hearing to consider approval of the Landscape Maintenance District 94-1 (Sycamore Crossing) Final Engineer’s Report for Fiscal Year 2023-2024. Resolution No. 11465.

3. RECOMMENDED ACTION

2. Establish the assessment for Fiscal Year 2023-2024 for Landscape Maintenance Assessment District 94-1 (Sycamore Crossing) at $293.08 per single family unit per year.

4. FISCAL IMPACT
The total expenditure for this assessment is $46,538 and will be funded through Sycamore Crossing Landscape Maintenance District (293).

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.

Annually, staff performs a detailed accounting of expenses and calculates a new assessment for the benefiting property owners. All assessments are recommended to remain the same for Fiscal Year 2023-2024 (FY24) as they are for the current fiscal year. The 124 units in the interior of the Tract are City of Orange Printed on 6/7/2023Page 1 of 2
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Item #: 8.2. 6/13/2023 File #: 23-0320
2023-2024 (FY24) as they are for the current fiscal year. The 124 units in the interior of the Tract are currently assessed annually at $293.08. The 36 units adjacent to the landscape improvement have a 2% premium and are currently assessed at $298.94 per unit, per year. The senior housing site (Harmony Creek) is currently assessed at $597.88 per year. In addition, the City owns two lots within the district that pay into the District. The larger lot which remains as open space is assessed at $117.23 per year and the smaller lot for a future water well is $58.62 per year.

The attached Final Engineer’s Report contains detailed information about the assessment.

Each year, the process for setting the assessment of the Landscape Maintenance Districts is initiated. The process began on April 25, 2023 with the City Council’sApproval of Resolution No. 11450 which approved the Preliminary Engineer’sReport for LMD 94-1 and set June 13, 2023 as the date for the public hearing. This public hearing is the second step in the process and is held in accordance with the Lighting and Landscape Maintenance Act of 1972 as outlined in the “Order of Procedure”. At this time, property owners will have an opportunity to be heard on this issue.

7. ATTACHMENTS
· Resolution No. 11465
· Final Engineer’s Report - Landscape Maintenance District 94-1 City of Orange Printed on 6/7/2023Page 2 of 2
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RESOLUTION NO. 11465

A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF ORANGE APPROVING THE
ENGINEER’S REPORT AND PROVIDING FOR

THE ANNUAL ASSESSMENT FOR LANDSCAPE
MAINTENANCE DISTRICT 94 -1 (SYCAMORE

CROSSING)

WHEREAS, the City Council of the City of Orange has previously formed a special maintenance district pursuant to the terms of the “Landscaping an d Lighting Act of 1972” being part 2 of Division 15 of the California Streets and Highways Code, in what is known and designated as Landscape Maintenance District No. 94-1 (“Assessment District”); and

WHEREAS, the City Council has initiated proceedings for the levy of the annual assessment for the Assessment District; and

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 all protests and objections of every kind and nature by, and the same hereby are, overruled and denied.

Section III:

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2 Section IV:

That the assessments for fiscal year 2023- 2024 be established as approved by the City Council, and are hereby confirmed and levied upon the respective subdivisions of land in the Assessment District in the amounts as set forth in said final approved Engineer’s Report.

Section V:

The City Clerk shall immediately accomplish the following:

B. Cause to be filed a certified copy of a diagram and assessment with the County Auditor, said filing to be completed no later than the 3
rd Monday in August.

Section VI:

ADOPTED this ____ day of ____________________, 2023

Daniel R. Slater, Mayor, City of Orange

ATTEST:

Pamela Coleman, City Clerk, City of Orange

468
3 STATE OF CALIFORNIA )

COUNTY OF ORANGE )

CITY OF ORANGE )

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

Pamela Coleman, City Clerk, City of Orange

469
Engineer’s Report
City of Orange
Landscape Maintenance District No. 94-1
1 CITY OF ORANGE
FINAL ENGINEER’S REPORT

FOR THE ANNUAL LEVY

ASSESSMENT LANDSCAPE MAINTENANCE
DISTRICT NO. 94-1
FISCAL YEAR 2023-2024

LANDSCAPE MAINTENANCE DISTRICT NO. 94-1

SYCAMORE CROSSING

Intent Meeting: April 25, 202 3
Public Hearing: June 13 , 202 3

LMD 94-1 Final ER FY 2023-24
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3 Engineer’s Report
City of Orange
Landscape Maintenance District No. 94-1

TABLE OF CONTENTS
AFFIDAVIT FOR THE ENGINEER’S REPORT .......................................................... 2 INTRODUCTION ............................................................................................................. 4 PART I — PLANS AND SPECIFICATIONS ................................................................... 6 A. Description of the District ...................................................................................................... 6 B. Improvements and Services .................................................................................................... 6 PART II — METHOD OF APPORTIONMENT ............................................................ 7 A. Background ............................................................................................................................... 7 B. Method of Assessment ............................................................................................................ 7 C. Financial Analysis ..................................................................................................................... 9 PART III — DISTRICT BUDGET ................................................................................. 10 PART IV — DISTRICT DIAGRAMS .............................................................................. 12 PART V — ASSESSMENT ROLL ................................................................................... 14

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City of Orange
Landscape Maintenance District No. 94-1

INTRODUCTION
Pursuant to the provisions of the Landscaping and Lighting Act of 1972, being Part 2 o f Division 15 of the California Streets and Highways Code, commencing wit h Section 22500 (hereafter referred to as the “1972 Act”), and in compliance with the substantive and p rocedural requirements of the California State Constitution Articles XIIIC and XIIID (hereafter referred to as the “California Constitut ion”) , 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 o f assessments of the special benefit assessment district designated as:

Landscape Maintenance District No. 94-1
(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.

This Report describes the District, the improvement s, and the proposed assessments to be levied in Fiscal Year 2023-2024 against properties in connect ion 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 pr ovide 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 assessments des cribed in this Report are based on an estimate of the direct expenditures, 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 (APN) by the Orange County Assessor’s Office. The Orange County Auditor/Controller uses Assessor’s Parcel Numbers and specific Fund Numbers to identify properties to be assessed on the tax roll 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 assessments for Fiscal Year 2023- 2024. 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 2023-2024. Upon conclusion of the public hearing, if majority protest does not exist the City Council may approve this Report (as submitted or amended) and levy the asses sments for Fiscal Year 2023-2024. In such case, the assessments for fiscal year 2023-2024 shall be submitted to the Orange County Auditor/Controller for inclusion on the property tax roll for each par cel. If the proposed annual assessments for this District exceed the maximum assessment described herein (as approved by the property owners), the new or increased assessment must be confirmed throu gh another property owner protest ballot proceeding before such an assessment may be imposed.
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City of Orange
Landscape Maintenance District No. 94-1

This Report consists of five (5) parts:

Part I
Plans and Specifications: A description of the District boundaries and the improvements associated with the District. The District has been formed as a single benefit zone encompassing all properties within the territory identified as Landscape and Maintenance District No 94-1.

Part III
The District Budget: An estimate of the annual costs to operate, maintai n and service the landscaping and appurtenant facilities installed an d constructed as part of the development of properties within the District. This budget includes an estimate of anticipated direct maintenance costs and incidental expenses. The special benefit assess ments are based on the overall operation costs minus any costs that are considered general benefit. The proposed assessments for Fiscal Year 2023- 2024, and each subsequent year shall be based on th e estimated net annual cost of operating, maintaining and servicing the improvements for that fiscal year as well as funds to be collected in installments to perform maintenance activities that cannot be reasonably collected in a single fiscal year’s assessments.

Part V
Assessment Roll: A listing of the proposed assessment amounts to be levied on Assessor’s Parcel within the District for Fiscal Year 2023-2024. The proposed assessment amount for each parcel is based on the parcel’s proportional special benefit as outlined in the method of apportionment. 474
6 Engineer’s Report
City of Orange
Landscape Maintenance District No. 94-1

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. 94-1, City of Orange, which is on file with the City Clerk of the City of Orange.

A reduced scale copy of the Diagram can be found in Part IV of this document.

All parcels of real property affected are more particularly described in maps prepared in accordance with Section 327 of the Revenue and Taxation Code, which are on file in the Office of the Orange County Assessor, and which are made a part of this report by reference.

B. Improvements and Services

Improvements and Services Permitted Pursuant to the 1972 Act The location of the works of improvement to be maintained under these proceedings is described as follows:

A. Lot E Tract 14752 - Generally a 23-foot wide strip of land along the northerly upper banks of Santiago Creek within Tract 14752;
B. Lot F Tract 14752 - Generally a 55-foot wide strip of land along the southerly upper banks of Santiago Creek with Tract 14752;
C. Lot C Tract 14752 - Generally an irregular shaped parcel adjacent to Lot F Tract 14752.

A general description of the works of improvement to be maintained under these proceedings are those generally described as follows:

A. Ornamental shrubs, trees, and ground cover
B. Habitat area including natural shrubs, trees, and ground cover C. Complete irrigation system including pipes, valves, sprinkler heads, and controller D. Soil cement erosion protection

The following items are excluded from the Maintenance District:

A. The center low flow channel of Santiago Creek.

B. Complete recreation trail/maintenance road including asphalt, signing, striping, and lighting.

Maintenance shall include, but not be limited to:

A. Repair, removal, or replacement of all or any part of any included improvement; B. Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, and treating for disease or injury; and C. The removal of trimmings, rubbish, debris, and other solid waste. 475
7 Engineer’s Report
City of Orange
Landscape Maintenance District No. 94-1

PART II — METHOD OF APPORTIONMENT
A. Background
The Landscaping and Lighting Act of 1972 provides t hat assessments may be apportioned by any formula or method, which fairly distributes costs a mong all lots or parcels within the district in proportion to the estimated benefits received. It i s necessary to identify the special benefit that th e Works of Improvement will render to the properties within the Assessment District. It is also necessary that the properties receive a special and direct benefit as distinguished from benefit to th e general public.

B. Method of Assessment
Identify the Special Benefit

First of all, it is necessary to identify the special benefit that the public improvement will render to the properties within the boundaries of Landscape Maint enance District No. 94-1. The improvements consist of landscaping and a recreation trail/maint enance road along the upper banks of Santiago Creek. The creek was a natural flood control channe l running through Tentative Tract 14752. As a condition for developing the tract, it was necessar y to improve the creek to provide 100-year flood protection consistent with the National Flood Insur ance Program. Alternative designs were looked at ranging from a concrete lined channel to a multi-use natural looking channel. The later was chosen to provide a visually pleasing channel with landsca ping along both banks, erosion control bank protection, a useful recreation trail and a maintenance road. An interesting biotic habitat was added to fulfill 404 & 401 permit requirements.

The Orange County Flood Control District owns and m aintains the center 96-foot wide low flow channel. The City of Orange owns and LMD 94-1 maintains 23 feet on the north side and 55 feet on the south side of the channel.

The special and direct benefits that each property owner will receive are:

• The Landscape Maintenance District fulfills the fin ancial obligation of the property owners to maintain the improvements in Santiago Creek installed by the Tract development and as required by Conditional Use Permit 2088-94, condition of app roval of Tract 15053 and the Development Agreement for Sycamore Crossing.
• A pleasing landscape visible at the entrance to the tract. • Enhanced desirability of district properties through association with the improvements. • Enhancement of the urban environment by providing open space and landscaping. • Necessary flood protection provided by the improvements. • Improved erosion resistance, dust control and fire prevention. • There are many homes in the District that back up t o Santiago Creek and the landscape improvement. Their back fences are made of wrought iron so they can enjoy the beauty and spaciousness of the landscape improvement.
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City of Orange
Landscape Maintenance District No. 94-1

Prior to 2011, the recreation trail, which begins within the Tract boundary and provides direct access to Hart Park, a City park with numerous recreation facilities, was considered as a special benefit. The recreation trail has been extended through the District and is now incorporated into the City regional trail system. This altered the special benefit of t he recreation trail within the District. District f unds are no longer used for the maintenance of the trail pavement, stripping and rail safety fence.

Apportionment of Cost

In further making the analysis, it is necessary tha t the property owners receive a special and direct benefit distinguished from that of the general public. In this case, an in-depth analysis was made, and several factors are being used in the final method and spread of assessments. In analyzing the overall district, it is noted that there are two types of d evelopment. There are 160 single family detached residential units on the north side of Santiago Cre ek and a 1.385 acre commercial site on the south side recently developed with senior housing.

All 160 residential units are relatively the same except for the fact that 36 units back up to the landscape improvement. The developer has placed an approximat e 2% lot premium on these lots. This same differential was used in determining the assessment. A unit cost factor of 1.02 is assigned to these 3 6 units and the remaining 124 units have a cost facto r of 1.0. The commercial site has been developed as low income housing for senior citizens.

The unit cost for the current FY 2022-2023 is $293. 08 per unit for a total levy of $47,877.49. No increase is recommended for fiscal year 2023-2024. The levy will remain at $293.08. Therefore, the assessment levied on the 124 interior residential units will be $293.08, and for the 36 residential units along the channel it will be $298.94. In analyzing the special benefit to the senior citizen housing site we recognize the fact that seniors are generally not mobile enough to use the bike and pedestrian trail and therefore have limited access to the landscape improvement. The special benefit is limited to the visibility of the landscaping from the north facing units. With this in mind, a unit cost factor of 2. 04 was assigned to the seniors housing site and the assessment levied will be $597.88. Since the enactment of Prop 218, publicly owned property within the District is no longer exempt from assessment. There are two lots within the boundaries of the District that are owned by the City of Orange. One is a small lot to be used in the future for a domestic water well. The other is a larger lot that will some day be used for recreation purposes. The special benefi t to these lots is minimal at this time. A unit cos t factor of 0.20 is assigned to the well site and a unit cost factor of 0.40 to the recreation site. The City will be levied $58.62 and $117.23 respectively. The total of the assessments levied on all the parcels will be $47,877.49.

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9 Engineer’s Report
City of Orange
Landscape Maintenance District No. 94-1

C. Financial Analysis
The facilities, which are to be maintained by this landscape maintenance district, were installed by the developer of Tract No. 14752. The estimated costs of maintenance, operation, and administration of the facilities are shown in Part III.

Resolution 8462 approved Condition Use permit 2088- 94 for Tentative Tract 15053 and Resolution 8463 approved Tentative Tract Map 15053, which is a part of Tract 14751. Both resolutions contain the following condition:

“To the satisfaction of the City of Orange’s Public Works Department and City Engineer, prior to the recordation of Final Tract M ap 15053, the City shall form a landscape maintenance district which shall include the project for the purpose of levying and collecting an assessment to maintain the open space dedicated to the City by Tentative Tract 14752 and defining in Exhibit E- 1 of the development agreement for this project. Said assessment shall not exceed the sum of $28.00 per month per residential unit in the project but may increase an nually in accordance with the applicable increase maintenance cost index as provi ded in the Engineering News Record or such other comparable index as the partie s shall agree. The future homeowner’s contributions (financial payments) towards the maintenance of Santiago Creek open space shall be included in the disclosure requirement to future buyers.”

The individual 2023-2024 assessments, tabulated by Assessor's Parcel Number, are on file with the City Clerk of the City of Orange, and can be found in Part V, Assessment Roll.

The 1972 Act permits carrying forward surpluses or recovering deficits in subsequent fiscal years.

Costs for the District are reviewed annually and su bsequent year's assessments will be credited or debited, as necessary.

The total assessment to be levied for fiscal year 2023-2024 by the district is recommended to be $47,877. This assessment is the same as fiscal year 2022-2023.

The assessments for Landscape Maintenance District No. 94-1, City of Orange, have been apportioned in direct accordance with the special a nd direct benefits that each parcel receives from the maintenance, operation, and administration of the Works of Improvement. 478
Engineer’s Report
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Landscape Maintenance District No. 94-1
10 PART III — DISTRICT BUDGET
The following budget outlines the estimated costs to maintain the improvements for 2023-2024.

ANNUAL LEVY OF ASSESSMENT
LANDSCAPE MAINTENANCE DISTRICT NO. 94-1
City of Orange

ESTIMATED COSTS

OPERATION & MAINTENANCE FUND BALANCE FROM PRIOR YEA RS
Estimated Fund Balance as of March 2023 $109,284

The estimated budget necessary for the 2023-2024 Fiscal Year for the District is as follows:

BUDGET ITEM COST

ANNUAL MAINTENANCE
Salaries & Benefits

$6,795
Telephone $0
Water $7,500
Electricity $400
Landscape Maintenance $15,993
Landscape Maintenance, Irrigation Repairs $1,599
Landscape Maintenance, Landscape Repairs $0
Other Professional & Consulting $500
Contractual Services, Tree Trimming Contract $5,240
Contractual Services, Electrical Maintenance $0
Contractual Services, Misc. Contract Services $6,157
Office Supplies & Operating Expenses $0
City Administrative Services $2,354
TOTAL LANDSCAPE MAINTENANCE EXPENSES $46,538
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Landscape Maintenance District No. 94-1
11 SURPLUS FUNDS TO BE ADDED TO RESERVE $1,339

● This Budget Estimate is for the purpose of establis hing an Annual Assessment. It may vary from the adopted City Budge t. All assessments collected by the District may only be used for Dist rict expenditures regardless of the Budget Estimate.

BALANCE TO LEVY (maximum assessment) $47,877
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Landscape Maintenance District No. 94-1
12 PART IV — DISTRICT DIAGRAMS
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. 94-1, also known as Sycamore Crossing.
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Landscape Maintenance District No. 94-1
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Landscape Maintenance District No. 94-1
14 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 Off ice, as they existed at the time this Engineer’s Report was prepared and the City Council adopted th e Resolution of Intention. A listing of the lots and parcels to be assessed within this District along with the assessment amounts is provided herein.

Orange City CouncilJune 13, 2023

Orange City Council
June 13, 2023