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Home My WebLink About05 ADOPT RESOLUTION NO. 21-25 DECLARING THE INTENTION TO FORM THE TL&L REASSESSMENT DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B 5 AGENDA REPORT Ree ewenda los Reviewed: m �W City Manager DS Finance Director �a MEETING DATE: APRIL 20, 2021 TO: MATTHEW S. WEST, CITY MANAGER FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER SUBJECT: ADOPT RESOLUTION NO. 21-25 DECLARING THE INTENTION TO FORM THE TUSTIN LANDSCAPE AND LIGHTING REASSESSMENT DISTRICT 2021 REPLACING THE EXISTING TUSTIN LANDSCAPE AND LIGHTING DISTRICT SUMMARY The Tustin Landscape and Lighting District was formed in 1985 to fund the maintenance of perimeter landscaping on the arterial highways and for the operation and maintenance of street lighting on public streets within the Tustin Ranch area. Assessments for the benefiting properties were first confirmed for Fiscal Year 1985-1986 and each fiscal year thereafter. Assessments collected through the District do not cover the cost of maintenance. Surplus bond funds have been used since Fiscal Year 2009-2010, as allowed by the California Streets and Highways Code, to fully fund annual maintenance needs within the District boundaries. The surplus funds are nearly exhausted and a new Tustin Landscape and Lighting Reassessment District 2021 will need to be formed to ensure annual revenue is not less than expenses. At the April 6, 2021 meeting, the City Council ordered the preparation of an Engineer's Report for the Levy of Annual Assessments for the Tustin Landscape and Lighting Reassessment District 2021. RECOMMENDATION It is recommended that the City Council adopt Resolution No. 21-25 declaring the intention to form Tustin Landscape & Lighting Reassessment District 2021 replacing the existing district as of Fiscal Year 2021-2022 and to levy assessments commencing with Fiscal Year 2021-2022, accepting and approving the Engineer's Report, ordering a property owner official assessment ballot proceeding, and setting a Public Hearing for June 15, 2021. FISCAL IMPACT The proposed Fiscal Year 2021-2022 budget for the District is $1,241,300. Assessment revenue generated by the Tustin Landscape and Lighting Reassessment District is estimated to be $1,085,597. Included in the assessments is a charge of $16,548 to the City for parkland which will be paid through the City's general fund operating budget. The City is also responsible for general benefits totaling $153,537, which will be paid through the City's general fund operating budget. Should the Tustin Landscape and Lighting Reassessment District 2021 fail to be approved by the property owners in the District, a deficit of $427,899 will exist. Historically, deficit amounts have been paid by the Reassessment District 95-1 (RAD 95-1) Fund. However, the remaining fund balance available for FY 2021-2022 is estimated to be $369,850. To avoid reduction in services, supplemental funding from the General Fund will be necessary in Fiscal Year 2021-2022 and each year after. DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B Tustin Landscape and Lighting Reassessment District 2021 April 20, 2021 Page 2 CORRELATION TO THE STRATEGIC PLAN This item contributes to the fulfillment of the City's Strategic Plan Goal B: Public Safety and Protection of Assets by ensuring Tustin is an attractive and well-maintained community in which people feel pride. BACKGROUND The Tustin Landscape and Lighting District was formed in 1985 to fund the maintenance of perimeter landscaping on the arterial highways and for the operation and maintenance of street lighting on public streets within the Tustin Ranch area. Assessments for the benefiting properties were first confirmed for Fiscal Year 1985-1986 and each fiscal year thereafter. As property developed in the Tustin Ranch area, such development was required to annex to the District. The District currently consists of 5,704 parcels encompassing 457.186 acres. As a result of procedures required by the passage of Proposition 218 on the November 1996 Statewide ballot, which added Article MID to the State Constitution, the City re-analyzed the District regarding the special benefits associated with the improvements for each property in the District, commencing with Fiscal Year 1997-1998. Notices and ballots to approve the assessment including future adjustments based on increases in the Consumer Price Index (CPI) were mailed in the spring of 1997 to all property owners in the District. Subsequently, at the conclusion of a public hearing on July 7, 1997, the majority of returned ballots, weighted by assessed amount, approved the annual assessments. Assessment Districts AD 85-1 and AD 86-2 were formed in 1986 and 1988, respectively and $132,050,000 in bonds were issued to fund the design and construction of public improvements including streets, traffic signals, drainage facilities, utility improvements, and landscaping. Streets constructed within these Districts included, but were not limited to, Jamboree Road, Tustin Ranch Road, Irvine Boulevard, Bryan Avenue, Portola Parkway and Pioneer Road. On January 15, 1996, Reassessment District No. 95-1 (RAD 95-1) was formed by Resolution No. 96-8, thereby consolidating AD 85-1 and AD 86-2 within the City of Tustin into a single district and authorizing the issuance of bonds to exonerate the previous bonds. Assessments levied under RAD 95-1 cover the same public infrastructure improvements within the City of Tustin as the previous Assessment Districts. On November 17, 2009, the City Council declared that construction of all required improvements was complete and, pursuant to Section 10427 of the California Streets and Highways Code, the remaining funds in RAD 95-1 were surplus and, as such, the remaining funds could be utilized for maintenance projects within the Tustin Landscape and Lighting District. These one-time funds have been utilized to offset annual District deficits each year since Fiscal Year 2009-2010 and are proposed to be utilized for 2020-2021. The Finance Department has projected the RAD 95-1 Fund balance at the end of FY 2020-2021 to be approximately $369,850. DISCUSSION An Engineer's Report for the Tustin Landscape and Lighting Reassessment District 2021 has been prepared by Harris & Associates. The Report evaluates the special benefits received by each parcel within the District. The Report also analyzes maintenance costs for street lighting and landscape maintenance services within the District. The total cost of maintenance is divided among the parcels on a proportionate share of services received. The precise method used to establish each parcel's special benefit may vary according DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B Tustin Landscape and Lighting Reassessment District 2021 April 20, 2021 Page 3 to land usage and benefit area, but similar parcels with equal benefit from the District pay equal assessments. The District includes three separate benefit areas based upon the special benefits received. • Benefit Area "A" Properties located in Benefit Area "A" pay only for Arterial and Collector Street Lighting (ACLT). • Benefit Area "B" Properties located in Benefit Area "B" pay for Arterial and Collector Street Lighting, plus Parkway, Slope, and Trail Landscaping (ACLT + PSTL). • Benefit Area "C" Properties located in Benefit Area "C" pay for Arterial and Collector Street Lighting, plus Parkway, Slope, Trail Landscaping, plus Local Residential Street Lighting (ACLT + PSTL + LRLT). Those parcels that pay for local residential street lighting are located within the residential tracts that have public streets. Typically, owners of single-family residential parcels in each area pay an equal share. The proposed assessments to be paid by single family residential parcels in each of the following benefit areas are: Existing Proposed • Benefit Area "A" (ACLT).............................................$4.11 / year $3.58 / year • Benefit Area "B" (ACLT + PSTL)..................................$89.47 /year $140.21 /year • Benefit Area "C" (ACLT +PSLT + LRLT)........................$122.44/year $151.23/year The Engineer's Report prepared by Harris & Associates has been filed with the City Clerk and contains the following proposed levy of assessments for Fiscal Year 2021-2022 along with a comparable listing to last year's assessment, It is recommended that the City Council adopt the attached resolution, which provides for the following: Resolution No. 21-25 declares the City Council's intention to form Tustin Landscape & Lighting Reassessment District 2021 replacing the existing district as of Fiscal Year 2021-2022 and to levy assessments commencing with Fiscal Year 2021-2022, accepts and approves the Engineer's Report, orders a property owner official assessment ballot proceeding, and sets a Public Hearing for June 15, 2021 at 5:30 p.m. Once the Public Hearing is closed, the tabulation of ballots will be conducted to determine if property owners within the District boundaries support the formation of the Tustin Landscape and Lighting Reassessment District 2021. Tabulation of ballots will be conducted in the Clifton C. Miller Community Center. A live stream of the City Council meeting will be available to property owners wishing view the Public Hearing and submit their ballots in person. Ballots must be submitted by prior to closing the Public Hearing. Ballots can also be mailed to the City Clerk's office or placed in the secure box at the main entrance to City Hall in advance of the Public Hearing. A sample Notice of Public Hearing and Ballot are attached. Specific instructions on the various ways to submit a ballot are included. DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B Tustin Landscape and Lighting Reassessment District 2021 April 20, 2021 Page 4 Depending on the number of ballots returned, counting may continue after the City Council meeting has ended. Should this be the case, the results will be provided to the City Council for consideration at their next regularly scheduled meeting. oug s �ub , P.E. it to o Plic Works/City Engineer Attachment(s): 1. Resolution No.21-25 2. Engineer's Report for Tustin Landscape and Lighting Reassessment District 2021 3. Sample Notice of Public Hearing and Ballot S:\City Council Items\2021 Council Items\04-20-2021\TLLD Re-Assessment\Formation of Assessment District.docx DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B ATTACHMENT 1 Resolution No. 21-25 DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B RESOLUTION NO. 21-25 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA DECLARING ITS INTENTION TO FORM TUSTIN LANDSCAPE AND LIGHTING REASSESSMENT DISTRICT 2021 AND TO LEVY ASSESSMENT COMMENCING WITH FISCAL YEAR 2021-2022; ACCEPTING AND APPROVING THE ENGINEER'S REPORT; TO CONDUCT A PROPERTY OWNER OFFICIAL ASSESSMENT BALLOT PROCEEDING ON THE MATTER OF THE NEW ASSESSMENTS; AND SETTING A TIME AND PLACE FOR THE PUBLIC HEARING ON THESE MATTERS WHEREAS, the City Council by Resolution No. 21-23 initiated proceedings for the formation of the Tustin Landscape and Lighting Reassessment District 2021 pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (Act) as amended and Proposition 218, and to levy and collect annual assessments for the District commencing on Fiscal Year 2021-2022 to pay for the operation, maintenance, and servicing of local landscaping and lighting improvements, and appurtenant facilities related thereto; and WHEREAS, by said Resolution No. 21-23, the City Council ordered the City Engineer to prepare a report pursuant to Section 22565 of said Code and Proposition 218; and WHEREAS, the City has retained Harris & Associates as the Engineer of Work for the purpose of preparing and filing and Engineer's Report with the City Clerk concerning the formation of Tustin Landscape and Lighting Reassessment District 2021 and the proposed annual levy of assessments in accordance with the provisions of Chapter 1, Article 4 of the Act and the provisions of the California Constitution Article XIIID (Constitution); and WHEREAS, the City Council has reviewed and examined the Report as submitted, and WHEREAS, the City desires and intends to form the District, to levy and collect annual assessments for the District commencing with Fiscal Year 2021-2022 to pay for the operation, maintenance, and servicing of the local landscaping and lighting improvements, and appurtenant facilities related thereto. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tustin that it determines and orders as follows: Section 1: That the forgoing recitals are true and correct. Section 2: That the Report prepared by Harris & Associates consists of the following: ■ A Description of the Improvements ■ The Method of Apportionment that details the method of calculating the proportional special benefits and the annual assessment obligation for each affected parcel including a description of an "Assessment Range Formula" applicable to subsequent assessments; and ■ The estimated annual cost and expenses to provide the improvements that established the proposed "Maximum Assessment Rate" and first year's assessments; and ■ An Assessment Diagram depicting the District boundaries; and DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B ■ An Assessment Roll containing the assessment to be levied for each Assessor Parcel Number within the District, commencing in Fiscal Year 2021-2022 based on the assessment rate and method of apportionment described therein. Section 3: That the District as described in the Report consists of the lots and parcels of land that will receive special benefits from the improvements and services to be provided and are within boundaries of the City of Tustin and by reference maps and documents referencing these lots and parcels of land are made part of this resolution. Section 4: That the improvements for which the District is formed generally include, but are not limited to, continued maintenance and operation of the streets and sidewalks within the District, including the construction, operation, servicing and maintenance of landscaping, lighting, and appurtenant facilities, including but not limited to personnel, electrical energy, utilities, materials, contracting services, and other items necessary for the satisfactory operation of these services described as follows: Landscaping and Appurtenant Facilities Landscaping, planting, shrubbery, trees, irrigation systems, hardscapes, fixtures, sidewalk and curb and gutter maintenance adjacent to street trees, and appurtenant facilities, in public street and sidewalk rights-of-way, including parkways, medians and dedicated easements within the boundary of the District. Lighting and Appurtenant Facilities Poles, fixtures, bulbs, conduits, equipment including guys, anchors, posts and pedestals, metering devices and appurtenant facilities as required to provide safety lighting in public street and sidewalk rights-of-way and easements within the boundaries of said District. Servicing of the Southern California Edison Company-owned lights shall be furnished by Southern California Edison Company or its successors or assignees and shall be adequate for the intended purpose. Rates for power and maintenance shall be authorized by the Public Utilities Commission, State of California, and Section 5: That the Engineer's Report as prepared by Harris and Associates is hereby approved. Section 6: That Notice is hereby given that a Public Hearing on these matters will be held by the City Council on Tuesday, June 15, 2021, at 5:30 p.m. or as soon thereafter as feasible, in the Tustin City Council Chamber, located at 300 Centennial Way, Tustin, California 92780. At the Public Hearing, all interested persons shall be afforded the opportunity to hear and be heard. Section 7: That the City Clerk or their designee is hereby authorized and directed to prepare and, not less than 45 days prior to the Public Hearing, mail notice of the Public Hearing and property owner Official Assessment Ballots to the subject property owners regarding the proposed levy of the assessments and the assessment range formula outlined in the Engineer's Report, pursuant to Article MID of the California Constitution and Government Code Section 53753. Section 8: That the property Official Assessment Ballot proceeding conducted for the District assessments shall constitute the property owner's approval or rejection of the proposed levy of assessments, assessment range formula and formation of the District. Each landowner may return the ballot by mail or in person to the City Clerk's office not later than the conclusion of the DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B Public Hearing on Tuesday, June 15, 2021. After the close of the Public Hearing, the City shall tabulate the ballots returned to determine if majority protest exists. The ballots shall be weighted according to the proportional financial obligation of each affected property. Majority protest exists if, upon the conclusion of the Public Hearing, ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessment. Section 9: The assessments are proposed to be levied annually. If the proposed assessments are approved and confirmed by the City Council, the assessments may increase in future years by an amount equal to the annual change in the Consumer Price Index for All Urban Consumers in the Los Angeles-Long Beach-Anaheim Area, without a further vote or balloting process. Future increase shall not be less than two percent (2%) or more than five percent (5%). In each subsequent year in which the assessment will be levied, an updated Engineer's Report, including a proposed budget and assessment rate, shall be prepared. The updated Engineer's Report shall be considered by the City Council at a notice Public Hearing. The updated Engineer's Report shall serve as the basis for the continuation of the assessments. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin held on the 201h day of April, 2021. LETITIA CLARK, Mayor ATTEST: ERICA N. YASUDA, City Clerk DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) I, Erica N. Yasuda, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council is five; that the above and foregoing Resolution No. 21-25 was duly and regularly passed and adopted at a regular meeting of the City Council held on the 20th day of April, 2021 by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: ERICA N. YASUDA, City Clerk DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B ATTACHMENT 2 Engineer's Report for Tustin Landscape and Lighting Reassessment District 2021 DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B Engineer's Report Tustin Landscape and Lighting Reassessment District 2021 Fiscal Year 2021 -22 April 5, 2021 Prepared for: w � �- City of Tustin 300 Centennial Way Tustin, CA 92780 Prepared by: Harris & Associates 22 Executive Park, Suite 200 Irvine, California 92614 (949) 655-3900 DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B ENGINEER'S REPORT TUSTIN LANDSCAPE AND LIGHTING REASSESSMENT DISTRICT 2021 The undersigned respectfully submit the enclosed report as directed by the City Council. The undersigned certifies that he or she is a Professional Engineer, registered in the State of California. DATED: April 5,2021 OFESSIgv eoG Harris & Associates No. 061383 � sr CIVIL w� BY: Alison Bouley, P.E. If OF CA-X, R.C.E. No. C61383 I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll and Assessment Diagram thereto attached, was filed in the office of the City Clerk on the day of , 2021. City of Tustin Orange County, California By I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll thereto attached, was approved and confirmed by the City Council of the City of Tustin, California, on the day of , 2021. City Clerk, City of Tustin Orange County, California By Tustin Landscape and Lighting Reassessment District 2021 i April 5,2021 Engineer's Report,FY2021-22 DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B Table of Contents Introduction...............................................................................................................................1 Section 1 Plans and Specifications.................................................................................1 - 1 Section 2 Estimate of Costs ............................................................................................2 - 1 Section 3 Assessment Diagram ......................................................................................3 - 1 Section 4 Assessment .....................................................................................................4 - 1 Section 5 Assessment Roll..............................................................................................5 - 1 Appendices Appendix A: Budget Detail 440110 Appendix B: Government Parcels • Appendix C: Maps and Exhibits Appendix D: Required Contribution Tables Appendix E: Special Benefit to cels tside`e District Preliminary Assessment Roll (under separate cover) Tustin Landscape and Lighting Reassessment District 2021 ii April 5,2021 Engineer's Report,FY2021-22 DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B Introduction Overview This report,prepared for the City of Tustin (the"City"), sets forth findings and engineering analysis to levy assessments in the proposed Tustin Landscape and Lighting Reassessment District 2021 (the "Proposed District" or the "District") for the 2021-22 fiscal year. If approved by the District property owners through a mailed protest balloting process,the Proposed District shall replace the existing Tustin Landscape and Lighting District(the"Existing District"). The Existing District was formed in 1985. In 1997, the property owners approved an assessment increase that included an annual inflation adjustment based on th4onsumer Price Index ("CPI"). Property in the Existing District has been assessed b�3sed on the approved maximum assessment rates, as escalated by CPI every year since. De4ite annual adjustment for inflation, the rise in annual service costs has significant outpaced se in annual revenue and the resulting deficit is over$500,000 annually. In 2009, the City Council approved the use of remaim ds from Reassessment District No. 95-1 ("RAD 95-1")to offset the annual deficits%&e Existi o District. With leftover RAD 95-1 funds nearly exhausted,the Proposed District 'ould generathe additional revenue that is needed to properly align District's a revenue end with its expenditures so that the level of services currently provided with' e Di ct continue at the same level without reduction. District Boundaries The Proposed Distri all serve Tu n Ranch area of the City that is bounded by Browning Avenue, Irvine Boulev Jambor Road(formerly Myford Road) and the I-5 Freeway, which are the same boundaries o Exi ting District. The Assessment Diagram/Boundary Map for the Proposed District is included Appendix C. District Improvements The purpose of the Proposed District is to provide for the maintenance, and servicing (the "Services") of certain street lighting and landscaping improvements (the "Improvements") in the District area. The Improvements consist solely of parkway landscaping, trail landscaping, slope landscaping, arterial and collector street lighting, and local residential street lighting in public rights-of-way and dedicated easements. Parks and median islands in roadways are not part of the Improvements. Detailed descriptions of the Improvements and Services are provided in Section I and the Landscape Maintenance Exhibit of the District for the 2021-22 fiscal year is included in Appendix C. Tustin Landscape and Lighting Reassessment District 2021 1 April 5,2021 Engineer's Report,FY2021-22 DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B Background of Assessments Landscape & Lighting Act The Existing District was originally formed under the authority of Section 22500 of the California Streets and Highway's Code (the "Act"). As defined in the Landscape and Lighting Act of 1972, an "assessment district shall consist of all territory which, as determined by the legislative body,will benefit by the improvements that are to be assessed to apportion the costs thereof' and"may consist of all or any part of the territory"within the City. The Act also states that the"assessment district may consist of contiguous or noncontiguous areas" and that the "improvements in one area need not be of benefit to other areas". The types of improvements that may be maintained, and incidental expenses that may be funded using assessment revenues are defined in the Act. Proposition 218 In 1996, California voters approved Proposition 218 Rig!Lt to Vote Taxes Act. Proposition 218 amended the California Constitutio a g Article XIIIC and Article XIIID, which affect the ability of local government to levy an lect existing and future taxes, assessments, and property-related fees and c rop n 218 requires that any new or modified assessment district or increase in an sess ve an Engineer's Report prepared that is supported by an analysis pre a re istered professional engineer certified by the State of California. Since the a on i 996, osition 218 has been and is likely to continue to be the subject of on icial interpretation, constitutional amendment, and statutory clarificatio Intent of Report The intent in making a re a s t of the Existing District and forming the Proposed District is to secure the long-term finan sustainability of the District in compliance with the Act, the requirements of Proposition 218 and the legal landscape that exists today. Case Law Review We have reviewed the existing Improvements and Services being provided and the boundaries of the District at length. In determining assessments for the Proposed District, this Report identifies, details and addresses the following legal requirements: • Clearly identify and state the special benefit received from improvements and services. Silicon Valley Taxpayers Association, Inc. v. Santa Clara County Open Space Authority • Identify and remove from the assessments any general benefits. Beutz v. County of Riverside Tustin Landscape and Lighting Reassessment District 2021 2 April 5,2021 Engineer's Report,FY2021-22 DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B • Assess parcels based on special benefit received from improvements and services rather than the costs to provide those improvements and services. Town of Tiburon v. Bonander • Assess parcels owned by public agencies that benefit from improvements to be funded. Golden Hills Neighborhood Association v. City of San Diego The following is a summary of these court cases: Silicon Valley Taxpayers Association,Inc.v. Santa Clara County Open Space Authority. In July of 2008, the California Supreme Court issued a ruling on the above titled case that provided legal guidance clarifying the requirements of Proposition 218. Some of the most important elements of the ruling are summarized below: • Benefit assessments are for special, not general bene • The services and/or improvements funded by sments m e clearly defined. • Special benefits are directly received by and provide a direct advantage to property within an assessment district. • The courts opined that Proposition 21 made,aftallenge to assessments a PF constitutional issue,which e co s will take an active role in reviewing challenges to assessment Town of Tiburon v. Bon nder. In December of 2009, the 1st District Court of Appeal overturned an assess approved by##perty owners to place overhead utility lines underground in an A '' f the To f Tiburon. The court invalidated the assessment on the grounds that the assess had n apportioned to assessed roe based in art on the :� � pp property rtY p costs assigned to specific z areas within the boundaries of the district, instead of apportioning the costs based upon proportional special benefit. This means that the cost associated with improvements and services for any parcel doesn't matter when apportioning such cost to the parcel, only special benefits matter when apportioning such cost. Beutz v. County of Riverside. In May of 2010, the 4th District Court of Appeal issued a decision on an appeal to a ruling of the above titled case. This decision overturned an assessment for park maintenance,primarily because the general benefits associated with improvements and services were not clearly calculated, quantified,nor separated from the special benefits. Golden Hills Neighborhood Association v. City of San Diego. In September 2011,the San Diego Court of Appeal issued a decision on the appeal of the above referenced case. This Tustin Landscape and Lighting Reassessment District 2021 3 April 5,2021 Engineer's Report,FY2021-22 DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B decision overturned an assessment for street and landscaping maintenance in a neighborhood in San Diego, California. The court identified two primary reasons for its decision. First, like in the Beutz case, the court found the general benefits associated with the services were not explicitly calculated, quantified, nor separated from special benefits. Second,the court found that the City had failed to record the basis for the assessment on its own parcels. Proposition 218 Compliance Process Proposition 218 requires property owner approval of any proposed new or increasing assessments. For the Proposed District to comply, notices and assessment ballots shall be mailed to District property owners on or before April 30, 2021, starting a required 45 day or more voting period that is scheduled to culminate at a public hearing planned fo June 15, 2021 (the"Public Hearing"). The assessment ballots shall be tabulated upon closing of ub Hearing with the weight of each parcel's vote equal to its proposed assessment a t,meaning��e�dollar equals one vote. Only ballots that are received by the close of the P c He g shall be counted. If the weighted vote from received ballots that are opposed roposed District and assessments is greater than the weighted vote from receive is that n favor of the Proposed District and assessments, a majority protest exists,the Pr se t ay not be formed and the Existing District shall continue. If the weight to fro eive allots that are in favor of the Proposed District and assessmen gre r th r equal to the weighted vote from received ballots that are opposed to the Propose assessments,there is no majority protest and the City Council may autho ' e .Opo on of the Proposed District and dissolution of the Existing District. The notice to property ers shalclude a provision to account for inflation (the "Annual Inflation Factor") similarlR the Ex kng District, which will allow the maximum assessment rates to be increased each yeaWaased on the Consumer Price Index ("CPP'). If approved, it will not be necessary to hold a Proposition 218 assessment ballot proceeding in any year in which there is a proposed increase in assessments as long as the proposed increase is not greater than the CPI increase for that year. See Annual Inflation Adjustment under Section 4 below for a detailed description. Tustin Landscape and Lighting Reassessment District 2021 4 April 5,2021 Engineer's Report,FY2021-22 DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B CITY OF TUSTIN FISCAL YEAR 2021-22 ENGINEER'S REPORT PREPARED PURSUANT TO THE PROVISIONS OF THE LANDSCAPING AND LIGHTING ACT OF 1972 SECTION 22500 THROUGH 22679 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE AND ARTICLE XIIID OF THE CALIFORNIA CONSTITUTION Pursuant to Part 2 of Division 15 of the Streets and Highways Code of the State of California (the 1972 Act), Article XIIID of the California Constitution and in accordance with the Resolution of Initiation adopted by the City Council of the City of Tustin, State of California, in connection with the proceedings for: TUSTIN LANDSCAPE AND LIGHTING REASSESSMENT DISTRICT 2021 hereinafter referred to as the "District", I,Alison Bouley,P-E., the authorized representative of Harris & Associates, the duly appointed ENGINEER OF WORK, submit herewith the "Report" consisting of five (5) sections as follows: SECTION 1 PLANS AND SPECIFICATIONS Plans and specifications for the Improvements are as set forth on the lists thereof, are on file in the Office of the City Engineer and are incorporated herein by reference. SECTION 2 ESTIMATE OF COST The estimated cost of the proposed Services, including incidental costs and expenses in connection therewith, is as set forth on the lists thereof, attached hereto, and are on file in the Office of the City Clerk and incorporated herein by reference. Tustin Landscape and Lighting Reassessment District 2021 5 April 5,2021 Engineer's Report,FY2021-22 DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B SECTION 3 ASSESSMENT DIAGRAM The diagram of the District showing the exterior boundaries of the District, the boundaries of benefit areas within the District and the lines and dimensions of each lot or parcel of land located in the District is on file in the Office of the City Engineer and is incorporated herein by reference. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Assessor of the County of Orange (the "Assessor")for the fiscal year to which this Report applies. The Assessor's maps and records are incorporated by reference herein and made part of this Report. SECTION 4 ASSESSMENT* The assessment, including the method of apportion ent of ssments d the assessment calculations, indicate the proposed assessment of the ount of the costs and expenses of the improvements to be assessed upon the sever is and p is of land within the District in proportion to the estimated special benefits t e r b ch lots and parcels. /01 SECTION 5 ASSESSMENT ROLL An assessment of the mated cos f the improvements on each benefited lot or parcel of land within the District(the sessme)Roll"), is on file in the Office of the City Clerk and incorporated herein by refe ence. The Assessment Roll includes the names and addresses of the owners of real property within this District, as shown on the last equalized roll of the Assessor, is keyed to the records of the Assessor,which are incorporated herein by reference. Tustin Landscape and Lighting Reassessment District 2021 6 April 5,2021 Engineer's Report,FY2021-22 DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B Section 1 Plans and Specifications DESCRIPTION OF IMPROVEMENTS TUSTIN LANDSCAPE AND LIGHTING REASSESSMENT DISTRICT 2021 FISCAL YEAR 2021-22 District Improvements The plans and specifications for the Improvements, showing the general nature, location and the extent of the Improvements to be serviced and maintained, are on f'le in the office of the City Engineer and are by reference herein made a part of this report. trict Improvements are generally described as follows: Landscaping Improvements Landscaping Improvements include but are not limi to- dscaping, planting, shrubbery, trees, irrigation systems, hardscapes, fixtures, sidewalk maintenance resulting from landscape growth and appurtenant improvements, in p s-of-- , parkways, and dedicated easements within the boundaries of said Dis Landscaping by Improvem yp The landscaping includes parkway landscaping in the Tustin Ranch area, specifically: Parkway Landsc • The southerly si 7a%,,Bry Avenue between Browning Avenue and Tustin Ranch Road • The northerly sidan Avenue between Browning Avenue and Jamboree Road, excepting that portion adjacent to the SCE substation • The easterly side of Browning Avenue between the northerly corner of Tract No. 13094 (southerly of Bent Twig Lane) and El Camino Real, including area from APN 500-201- 02 for a future overcrossing, but excepting that portion adjacent to the SCE substation • The westerly side of Tustin Ranch Road between the Santa Ana I-5 Freeway and Jamboree Road, excepting that portion between the northerly boundary of Tract No. 16782 (-350 feet northerly of Rawlings Way) and Portola Parkway. • The easterly side of Tustin Ranch Road between Bryan Avenue and Jamboree Road, excepting that portion adjacent to Heritage Park between Heritage Way and Kinsman Circle, that portion adjacent to the Golf Course northerly and southerly of the main Tustin Landscape and Lighting Reassessment District 2021 1-1 April 5,2021 Engineer's Report,FY2021-22 DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B entrance, and that portion adjacent to the Citrus Ranch Park site at Tustin Ranch Road and Portola Parkway • The southerly side of Irvine Boulevard between the westerly boundary of Tract No. 13053 and the easterly boundary of Tract No. 13038 (±630 feet easterly of Myford Road) • The northerly side of Irvine Boulevard between the westerly City limits and Jamboree Road • The westerly side of Jamboree Road from Bryan Avenue northerly 1,100 feet to the northerly boundary of Tract No. 13030 • The westerly side of Jamboree Road between Irvine Boulevard and the northerly City limits, except that portion adjacent to the Tustin Sports Park • The easterly side of Jamboree Road between the northerl 'ty limits and Tustin Ranch Road L • The northerly and southerly sides of La Colina D 'vLvbetween Tustin Ranch Road and the westerly City limits hL • The northerly and southerly sides of Portola kway between Jamboree Road and Tustin Ranch Road Slope Landscaping • The westerly side of Jamboree Road between the northerly City limits and 600 feet southerly • The easterly side of Jam *ee nthe northerly City limits and Tustin Ranch Road, including the slopesed to the City by the Transportation Corridor Agency per Instrument No. 9)rom r ed January 22, 1999 Trail Landscaping • The equestrian/hiki Peters Canyon Regional Park to Tustin Ranch Road/ Portola Parkway • The paseo for public access between Tract No. 14366 and Tract No. 14576 from Jamboree Road to Pioneer Road The estimated total landscaping area of the District is 64 acres. The Landscape Maintenance Exhibit for the District for the 2021-22 fiscal year is provided in Appendix C. Lighting Improvements Lighting Improvements include but are not limited to: poles, fixtures, bulbs, conduits, conductors, equipment including guys, anchors, posts and pedestals, metering devices and appurtenant improvements as required to provide lighting in public rights-of-way and dedicated easements within the boundaries of said District. Tustin Landscape and Lighting Reassessment District 2021 1-2 April 5,2021 Engineer's Report,FY2021-22 DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B The public lighting system shall be maintained to provide adequate illumination. Electricity for street lights shall be furnished by the Southern California Edison Company, and it shall be adequate for the intended purpose. Rates for power shall be those authorized by the California Public Utilities Commission. In 2018, the City purchased all the street lights from Edison and converted them from High Pressure Sodium Vapor to Light Emitting Diode (LED). The purchase and LED Conversion was funded through the City's General Fund and Street Lighting Fund. Lighting by Improvement Type The street lighting system in the District consists of 760 lights as follows No. Type of Light umens 386 Light Emitting Diode (LED) \2, 374 Light Emitting Diode (LED) I Since the District is built-out, no additional street lights are anticipated for the District. District Services The District shall fund maintenanc rvici osts for the Improvements including,but not limited to, personnel, electrical eilergy, er,m als, contracting services, and other expenses necessary for the satisfactory operation o nct Improvements. Maintenance Maintenance means<thishing services and materials for the ordinary and usual operation, maintenance and serh dscaping,public lighting improvements and appurtenant improvements,including repair, removal or replacement of all or part of any of the landscaping, public lighting improvements or appurtenant improvements; providing for the life, growth, health and beauty of the landscaping, including cultivation, irrigation,trimming, spraying, fertilizing and treating for disease or injury; the removal of trimmings,rubbish, debris and other solid waste. Servicing Servicing means the furnishing of water for the irrigation of the landscaping and the maintenance of any of the public lighting improvements or appurtenant improvements and the furnishing of electric energy for the public lighting improvements, or for the lighting or operation of landscaping or appurtenant improvements. Tustin Landscape and Lighting Reassessment District 2021 1-3 April 5,2021 Engineer's Report,FY2021-22 DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B Section 2 Estimate of Costs District Budget The City's budget for District Services is shown below. Cost of Services may include engineering fees, legal fees,printing,mailing, postage,publishing, and any other related costs identified with the district proceedings. FY 2021-22 BUDGET&TOTAL TO ASSESSMENT District 1 Less Projected Contributions Cost of Reserve Admin. Fund Balance Special General Total to Service Category Services 50%Max. o.6018 z 6/30/2021 Benefit Benefit Assessment Arterial and Collector Street Lighting $50,983 $0 $636 $0 ($20,837) $30,782 Object No.6220 z Local Residential Lighting $4,017 $0 $500 $0 $0 $4,068 Object No.6220 z Parkway,Slope and Trail Landscaping $1,171,000 $0 $14,614 $0 $2166) ($132,700) $1,050,747 Object Nos.6028,6132,6335,6350 2 Totals $1,2269000 $0 14,300 JjJF $0 ($29166) ($1539537) $190859597 'District Administration costs are prorated based on Total Cost of services and include the Orange Co ection charge equal to 0.3%of the assessment amount. 2 Refer to the Budget Detail Table in AppendixA for object number descriptions. District Funds The 1972 Act requires that a sp fun e set- for the revenues and expenditures of the District. Funds raised by assess only for the purpose as stated herein. The City will make funds availabl t to ensure adequate cash flow and will be reimbursed upon receipt of assessments. Any bal or deficit remaining on July 1 shall be carried over to the next fiscal year. 4he 1972Act ows a reserve for cash flow not to exceed 50% of the budget. The following table provides 1972/ balance projections for the District for the 2021-22 fiscal year: DISTRICT FUND BALANCE Beginning Fund Balance, 7/1/2021 $0 equals FY 2020-21 Ending Fund Balance Projected Revenues,FY 2021-22 $1,085,597 equals Total to Assessment Projected Expenditures,FY 2021-22 ($1,241,300) equals Cost of Services Projected City Contribution,FY 2021-22 $155,703 equals Special Benefit plus General Benefit Projected Ending Fund Balance,6/30/2022 $0 *The Beginning Fund Balance does not include RAD 95-1 funds. The projected balance of the RAD 95-1 account on July 1,2021 is$369,850. Tustin Landscape and Lighting Reassessment District 2021 2-1 April 5,2021 Engineer's Report,FY2021-22 DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B Section 3 Assessment Diagram An Assessment Diagram for the District is on file in the office of the City Clerk. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the Assessor's maps, for the year when this Report was prepared, and are incorporated by reference herein and made part of this Report. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the Assessors' maps for the fiscal year to which this Report applies. The Assessor's maps and records are incorporated by reference herein and made part of this Report. <21 < Tustin Landscape and Lighting Reassessment District 2021 3-1 April 5,2021 Engineer's Report,FY2021-22 DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B Section 4 Assessment General Discussion The 1972 Act permits the establishment of assessment districts by cities for the purpose of providing certain public improvements which include the maintenance and servicing of landscaping and lighting improvements. Street and Highways Code Section 22573 requires that maintenance assessments be levied according to benefit rather than according to assessed value. This section states: "The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distr es the net amount among all assessable lots or parcels in proportion to the estimat nefits to be received by each such lot or parcel from the improvements." In addition to allowing any reasonable method for a ioni the ass ments,the 1972 Act permits the designation of areas of benefit within an d' al assessment district if"by reason of variations in the nature, location, and exte of the and( vements,the various areas will receive different degrees of benefit from the entec. 22574). Thus, the 1972 Act requires the levy of a true "assessment" rather an 'spev0d1 tax." The Proposed District utilizes 4q�no wellin�Unit("EDU")methodology to apportion the total amount to be assessed to District. Parcels are assigned to one of three benefit zones (the "Benefit Zonethe nature, location, and extent of District Improvements in proxCasent ea IT for the apportionment of District costs to District parcels fairyopon to special benefit received by the parcels. EDU methodology and the to Benefit Zones are discussed in greater detail in this section. Proposition 218,the "Right to Vote on Taxes Act" which was approved on the November 1996 Statewide ballot and added Article XIIID to the California Constitution, requires that a parcel's assessment may not exceed the reasonable cost of the proportional special benefit conferred on that parcel. Additionally, Proposition 218 provides that only special benefits are assessable and the City must separate the general benefits from the special benefits. Prop. 218 also requires that publicly owned property which benefit from the improvements be assessed. The discussion of general benefit and special benefit that follows addresses these requirements for properly determining the District assessment rates and assessments. Tustin Landscape and Lighting Reassessment District 2021 4-1 April 5,2021 Engineer's Report,FY2021-22 DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B Separation of General and Special Benefit Proposition 218 requires that General and Special Benefit are identified and analyzed separately in determining parcel assessments. Article XIIID, Section 4(a) of the California Constitution, states: "Only special benefits are assessable, and an agency shall separate the general benefits from the special benefits conferred on a parcel. " Since District parcels can only be assessed for the special benefits they receive, contributions from other sources are required to pay for costs of services that provide special benefit to parcels outside the District, if any, and to pay for cost of services that provide general benefit, if any. General Benefit General benefits from District Services are identified and qu ed in order to separate them from special benefits and to remove general benefit costs or to p� orming assessment calculations. Landscaping General Benefit Tustin Ranch has extensive walkways that Xpeother than property owners. These people receive general benefit from the lands in eral benefit costs of landscaping are separated from special benefit cost e ge benefit amount is quantified by determining the cost of maintaining the minium lev of Ian aping that would be provided in the interest of public safety and the protectio f e baseline level of service would provide for public safety and essenti y tection and avoid negative impacts on adjacent roadways and vehicles travelin�on those wa nd potential property damage resulting from slope failures. This baseline level of sery w d result in a far less visually pleasing environment than what is created by the enhanced levils of services associated with the regular landscape maintenance that is provided in the District. Specific cost items included with baseline services are tree trimming,weed abatement, rodent control and erosion control to be performed a few times or less each year depending on the area. In developing the estimated general benefit cost of landscaping, analysis of local landscaping costs indicated an estimated cost of$0.023 per square to provide the baseline service level for all landscaping areas in District. The general benefit cost of landscaping is not assessed and must be paid for by a contribution to the District. Required Contribution for Landscaping General Benefit=$60,333 Refer to Table 1 in Appendix D for the general benefit cost of landscaping calculation. Tustin Landscape and Lighting Reassessment District 2021 4-2 April 5,2021 Engineer's Report,FY2021-22 DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B Jamboree Road Slopes. The slopes along the easterly side of Jamboree Road are considered to provide general benefit. Therefore, Jamboree Road slope landscaping costs that may not be assessed and shall be paid for by a contribution from other sources. Required Contribution for Jamboree Road Slope Landscaping General Benefit = $72,667 Refer to Table 2 in Appendix D for the general benefit cost of landscaping calculation. Lighting General Benefit Arterial and Collector Lighting. The portion of arterial lighting above what is required to illuminate a typical residential neighborhood is general benefit for vehicular traffic. The typical local light is 2,900 lumens whereas the arterial light is 6,550 lum ,therefore 44.275% (2,900 lumens/6,550 lumens) of illumination from arterial lights prow' special benefit and the remaining 55.725% of illumination from arterial lights provi es ral benefit. A contribution is required for the general benefit portion of the arteria ting cos d such portion is not included in the assessments for the District parcels. Required Contribution for Arterial Lightr eneral Benefit=$20,837 Refer to Table 3 in Appendix D for the gene be fit cost landscaping calculation. Local Residential Lighting. Th e gene benefits provided by the local residential street lights. Other Lighting. Ligh filigNaMers, ns,which is defined as safety lighting, is considered to be the minimum lighting requirem t ehicular safety; therefore, safety lighting represents the general benefit po of stree ghting and is not assessed. Traffic Signals are also considered to provide a g al be fit and are not assessed. Costs associated with traffic signals and lights at intersections aralloTincluded in the District cost estimate. Special Benefit In determining the proportionate special benefit derived by each identified parcel, the proximity of the parcel to the Improvements and the capital, maintenance and operating costs of the Improvements were considered and analyzed. Due to the District-wide nature of the Improvements, it has been demonstrated and determined that all of the parcels in the District are uniquely benefited by and receive a direct advantage from the Improvements and are conferred a special benefit over and above general benefits by said Improvements in a way that is particular and distinct from its effect on other parcels and that real property in general and the public at large do not share. As a result, each parcel within the District receives a special and distinct Tustin Landscape and Lighting Reassessment District 2021 4-3 April 5,2021 Engineer's Report,FY2021-22 DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B benefit from the Improvements and each parcel in the District is assessed only for their special and distinct benefit from the Improvements. Landscaping Special Benefit The District enjoys a higher level of landscaping and streetscapes along its parkways and slopes than the rest of the City of Tustin. The City provides funding for the landscaped medians in the area, so these costs are not assessed. Additionally, a pedestrian and equestrian trail that is linked to the regional trail system is landscaped and beautified and maintained by the District. The landscape Improvements along the arterial and collector streets,parkways, slopes and the regional trail enhance the beauty of the area and provide special benefit to the parcels in the District. Numerous studies have confirmed the positive impact that well- aintained landscaping and trees have on property marketability,rental rates,the desirability of co rcial spaces and the ability to attract residents to those areas. In addition, street tre011nd landsca provide effective visual barriers, reduce noise transmission in urban s, provide shade nd enhance the outdoor environment Landscaping along recreational trails and gr also provide beautification and enhancement of the desirab ity of th\,w�eaintained,e%rroundings. Exception. The Tustin Marken and Tustin Auto Center are excluded from District landscaping assessmen�aose tain the landscaping that is adjacent to their properties. The maintenance-levdscaping areas is even higher than the level maintained throughout rest of the> ct. Required Contributi or L scaping Special Benefit to Out of District Parcels There are 117 parcels locate tside of the district along the westerly side of Browning Avenue that derive special benefit from 4.24 acres of landscaping along the exterior of the District on the easterly side of Browning Avenue from El Camino Real to Bent Twig Lane. The special benefit received by these parcels shall be paid for by contribution from other sources and is deducted in determining the assessment that is levied upon the District parcels. Required Contribution for Landscaping Special Benefit to Out of District Parcels = $2,166 Refer to Table 4 in Appendix D for the calculation of the portion of landscaping costs that provides special benefit to the out of district parcels. A map showing the landscaping area that provides special benefit and the property outside of the District that receives such special benefit is provided in Appendix E. Tustin Landscape and Lighting Reassessment District 2021 4-4 April 5,2021 Engineer's Report,FY2021-22 DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B Lighting Special Benefit Proper maintenance and servicing of the street lighting system benefits all properties within the District by providing security, safety, community character, and vitality as described below:. Security and Safety • Mitigates property damage due to criminal activity • Serves as deterrent to graffiti and vandalism • Alleviates the fear of crime,which increase the desirability of property • Enhances pedestrian safety by improving traffic safety Community Character and Vitality • Promotes business and industry • Provides a positive nighttime visual image In determining the proportionate special benefit den bleach identified parcel, the proximity of the parcel to the lighting Improvements and the capit 1,maintenance and operating costs of said Improvements were considered and anal*ZIP �e to th+District-wide nature of the lighting Improvements, it has been demonstrated andned that all of the parcels in the District are uniquely benefited by and receive dv e from said lighting Improvements and are conferred upon a special benefit o er an bove�eral benefits by said lighting Improvements in a way that is particular and distinct from its effect on other parcels and that real property in general and the public a o not share. As a result, each parcel within the District receives a special and distinc efit from the Improvements. Arterial and Collector tin CLT . The local portion of street lighting on the arterial and collector streets provide cial and direct benefits to all properties within the District, as these lighting benefits are directly related to the positive enhancement of the Community and therefore increase property desirability and quality of life. All properties within the District receive a special benefit from lighting on the arterials and collectors. Local Residential Lighting ("LRLT"). Many of the residential units in the District have private street lighting systems directly adjacent to their homes. This lighting is usually provided by a Home Owners Association, and payment for the lights are usually made through association dues or assessments and the parcels are not assessed by the District. Parcels that have local residential street lighting provided by the City receive special and direct local lighting benefit and are assessed for those local lights. There are 91 local residential lights. The cost for these lights is assessed only to benefiting parcels. Tustin Landscape and Lighting Reassessment District 2021 4-5 April 5,2021 Engineer's Report,FY2021-22 DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B HOA Lighting. Properties that are adjacent to private streets pay for their local private street lights through their Home Owners Association fees and are not assessed by the District. Other Lighting. Street lights that are adjacent to the District do not provide special benefit to parcels in the District. Street lights on the east side of Jamboree Road, north of the I-5 Freeway, which provide benefit to the property on the east side of Jamboree, are not included in this District and are not assessed. Total Required Contribution General and Special Benefit The total required contribution for general and special benefit equals $155,703. Refer to Table 5 in Appendix D for details. Equivalent Dwelling Unit Methodology Since the assessment will be levied against parcels of erty as sh on the tax roll, the final charges must be assigned by Assessor's Parcel Nu If assessments ere to be spread just by parcel, not considering land use or parcel size, a sing ly parcel could be paying the same as a 50 unit apartment parcel or a large comme ' establi nt in a similar zone and this would not be equitable. Therefore, Equivalent Dwe g eth logy is used to allocate assessments. The single family residential lot bee lecte s the basic unit for calculation of assessments and is defined as one (1) EDU- is used to calculate the EDU for other residential land uses and -re tial parcels. Parcels containing apartments are assigned EDU based on the numer ofd 'ng s on each parcel of land and non-residential parcels are converted based o e lot size each parcel of land. EDU methodology is seen ost appropriate and equitable method of spread for landscaping and lighting distri ts, as the benefit to each parcel from the Improvements are apportioned as a function of land use type and size. EDU Factors by Land Use Sinssle Family Residential. Parcels zoned for single family residential ("SFR")uses are assessed I EDU per dwelling unit. Parcels designated as SFR land-use shall be assessed I EDU per dwelling unit, including vacant subdivided residential lots and vacant land zoned for single family residential uses with a tentative or final tract map. Multiple Family Residential. Multiple-residential (including condominiums) land use equivalencies are determined based on the number of dwelling units on each parcel. Based on Tustin Landscape and Lighting Reassessment District 2021 4-6 April 5,2021 Engineer's Report,FY2021-22 DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B population density data from representative cities in Southern California and typical size of structure relative to the typical single family residence,the EDU factor for multi-family residential property, including condominiums, is assigned 0.75 EDU per dwelling unit. This includes vacant multi-family residential parcels zoned for multiple-residential uses with a tentative or final tract map. Non-Residential. In converting non-residential properties to EDU's, the factor used is the City of Tustin's typical standard single family residential lot area and the number of lots that could be subdivided into an acre of land. All properties that are developed for non-residential uses are therefore assigned 6 EDU per acre. These include commercial, industrial, church, school and other non-residential uses. Golf Course Property. Golf course parcels containing the club se are considered developed commercial property and therefore assigned 6 EDU per acre. course parcels that contain the course greens are also considered developed commercial r ert ,kt,the development is at a low level. Therefore, golf course parcels containing g s are assess e at a lesser rate than other non-residential property. Golf course parcels that in ns are assigned 4 EDU per acre. Public Property. Article XIIID of the Calif is Cons ion requires that all benefiting properties be assessed for their fair share of . 1 ben including properties that are owned by a public agency. Public properties ith A#^1 use are assigned EDU based on the type of residential use in the same s de abed above. Public properties with non- residential land uses (such as schools an ire stars) shall be assessed the same as private property with the same designation- MW Public park parcels ar igned 2 EDU pFr acre due to the passive nature of the parks. Exception. Peters Can Regionark is a large, natural, open space park with very few facilities,which straddleNacc sties of Orange and Tustin and a portion of unincorporated county area. The park has manys points around its perimeter and one is within the Tustin Ranch area. This park receives a very small amount of benefit relative to its size, and it seems reasonable to compare it to other existing parks within Tustin Ranch. In assigning EDU to Peters Canyon Regional Park, the acreage is adjusted to 6.26 acres based on the average size of developed parks in the City of Tustin including, five public parks (Camino Real, Cedar Grove, Heritage, Laurel Glen, and the Tustin Sports Park) and two private parks. Exempt Property. Excepted from the assessment shall be the areas of public streets,public avenues,public lanes,public roads,public drives,public courts,public alleys,public drainage, public easements and rights-of-ways,public greenbelts and parkways. Also excepted from assessment are utility rights-of-way, common areas (such as in condominium complexes), Tustin Landscape and Lighting Reassessment District 2021 4-7 April 5,2021 Engineer's Report,FY2021-22 DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B landlocked parcels,unbuildable parcels vacated by the City, and parcels designated on Tract or Parcel Maps for landscaping. EDU FACTORS BY LAND USE Land Use EDU Factor Single Family Residential 1.0 EDU per dwelling unit Multi-family Residential 0.75 EDU per dwelling unit Non-Residential 6.0 EDU per acre Vacant 4.0 EDU per acre Public Parks 2.0 EDU per acre Benefit Areas All parcels in the District are assigned to one of the follo ' g ben reas based on which Services are providing special benefit: Benefit Area A - All parcels that re 've sial benefit from: • Art al and Coll ctor Street Lights only. Benefit Area B - All parcel ve seial benefit from: e Co ctor Street Lights kwa Slope and Trail Landscaping. Benefit Area C$ZArterial receive special benefit from: and Collector Street Lights al Residential Street Lights • Parkway, Slope and Trail Landscaping. The following table provides the total EDU for each Benefit Area of the District: EDU BY BENEFIT AREA Benefit Area Parcels Dwellings Acres EDU's A 41 -- 151.863 911.178 B 5,294 7,357 305.323 7,321.416 C 369 369 0.000 369.000 Total 5,704 7,726 457.186 8,601.594 Tustin Landscape and Lighting Reassessment District 2021 4-8 April 5,2021 Engineer's Report,FY2021-22 DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B EDU by Service Category Arterial and Collector Lighting The following table shows the number of parcels, dwellings, acres and total EDU for each land use classification that receives arterial and collector lighting benefit for the 2021-22 fiscal year: ARTERIAL & COLLECTOR LIGHTING BENEFIT Land Use Parcels Dwellings Acres EDU's Single Family Residential 2,626 2,626 2,626.000 ......................................................................................................................................................................................................................................................................................... Multi-family Residential 2,974 5,100 3,825.000 ......................................................................................................................................................................................................................................................................................... Non-Residential 60 184.487 1,106.922 ......................................................................................................................................................................................................................................................................................... Schools 10 .573 291.438 Golf Course 12 "1.991 607.964 Public Parks 22 35 144.270 Total 5,704 6 457. 8,601.594 Local Residential Lighting The following table shows the number of parcels, s, res and total EDU for each land use classification that receives local r idential lighting efit for the 2021-22 fiscal year: LO SIDI�7NTIAL GHTING BENEFIT Land IV ,44 cels Dwellings EDU's Single Family Residential 369 369 369.000 AO Parkway, Slope an ail Landscaping The following table shows tuber of parcels, dwellings, acres and total EDU for each land use classification that receives landscaping benefit for the 2021-22 fiscal year: PARKWAY, SLOPE& TRAIL LANDSCAPING BENEFIT Land Use Parcels Dwellings Acres EDU's Single Family Residential 2,626 2,626 2,626.000 ......................................................................................................................................................................................................................................................................................... Multi-family Residential 2,974 5,100 3,825.000 ......................................................................................................................................................................................................................................................................................... Non-Residential 19 0 32.624 195.744 Schools 10 0 48.573 291.438 Golf Course 12 151.991 607.964 Public Parks 22 0 72.135 144.270 Total 5,663 7,726 305.323 7,690.416 Tustin Landscape and Lighting Reassessment District 2021 4-9 April 5,2021 Engineer's Report,FY2021-22 DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B Service Category Costs The estimated cost for the 2021-22 fiscal year for each category of Services is apportioned to parcels in associated benefit zones proportionally based on the EDU's. Costs by service type and benefit are shown in the following table: SERVICE CATEGORY COSTS BY BENEFIT AREA Arterial& Local Parkway, Benefit Collector Residential Slope&Trail Area Street Lights Lighting Landscaping Total A $3,261 $3,261 B $26,201 $1,000,330 $1,026,531 C $1,321 $4,068 $50,417 $55,805 Totals $30,782 $4,068 $1,050,747 $1,085,597 Assessments Maximum Assessment Rates The table below summarize the maximum as m for each Service Category: MAXIMUM ASSESSMENT RATES tal to Maximum Service Category Wsessment EDU's Assessment Rates ACLT-Arterial ollector Lighting $30,782 8,601.59 $3.58 /EDU LRLT-Loca sidential Lighting $4,068 369.00 $11.02 /EDU PSTL-Pkwy,Nope&Trail Landscape $1,050,747 7,690.42 $136.63 /EDU Annual Inflation Adjustment There is a provision for inflation (the "Annual Inflation Factor"),which allows the maximum assessment rates to be increased each year based on the Consumer Price Index ("CPP'). The Inflation Factor shall be the greater of the amount equal to the annual change from December to December in CPI for all Urban consumers for the Los Angeles, Long Beach and Anaheim areas (Los Angeles-Long Beach-Anaheim, CA, CPI-U) or 2%,not to exceed 5%, in any calendar year. For example, the increase for FY 2022/23 shall be equal to the greater of the CPI change for December 2021 to December 2022 or 2%,not to exceed 5%. Tustin Landscape and Lighting Reassessment District 2021 4-10 April 5,2021 Engineer's Report,FY2021-22 DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B Assessment Summary As discussed previously, each benefit area assessment rate is a combination of the service category cost per EDU. The maximum assessment rates per benefit area are fixed rates that increase based on CPI. The proposed assessed rates for each Benefit Area are equal to or less than the maximum allowable rates. The following table summarizes the calculated assessment rates and the maximum assessment rates for each Benefit Area: ASSESSMENT RATE SUMMARY FY 2021-22 Total Cost ofammum Total to Benefit Area Service Rates s ment Rates Assessment Benefit Area A (ACLT) $3.58 /EDU $7N /EDU $3,261 Benefit Area B (ACLT+PSTL) $140.21 /EDU $140.21 / U $1,026,531 Benefit Area C (ACLT+PSTL+LRLT) $151.23 /EDU $151.23 /EDU $55,805 Total to Assessment $1,085,597 Tustin Landscape and Lighting Reassessment District 2021 4-11 April 5,2021 Engineer's Report,FY2021-22 DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B I,Alison Bouley, P.E. the authorized representative of Harris &Associates,the duly appointed Assessment Engineer, am of the opinion that the assessments have been apportioned in accordance with the estimated special benefit derived by each parcel and that the assessments do not exceed the reasonable cost of the proportional special benefit,per the assessment apportionment methodology approved by the City Council and the property owners within the assessment district via a property owner balloting proceeding in 2021 per the provisions of Article XIIID of the California Constitution. DATED: April 5, 2021 Harris & Associates pfE5SI� q M No. C61383 M By' * * Alison B eY, P.E. CIV14 z`� SESSM T ENGINEER � Cw-� C.E.No. C61383 4L Tustin Landscape and Lighting Reassessment District 2021 4-12 April 5,2021 Engineer's Report,FY2021-22 DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B Section 5 Assessment Roll The Assessment Roll is a listing of the proposed assessment and the amount of assessment for Fiscal Year 2021-22 apportioned to each lot or parcel, as shown on the latest roll at the Assessor's Office, and contained in the Assessment Roll on file in the office of the City Clerk of the City of Tustin,which is incorporated herein by reference. The description of each lot or parcel is part of the records of the Assessor of the County of Orange and these records are, by reference,made part of this Report. The Assessment Roll includes property owner names and addresses for each lot or parcel, as shown on the Assessment Diagram referenced in Section 4 herein and as listed on the last equalized roll of the Assessor of the County of Orange which is reference,made part of this report. Tustin Landscape and Lighting Reassessment District 2021 5-1 April 5,2021 Engineer's Report,FY2021-22 DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B Appendix A: Budget Detail BUDGET DETAIL TABLE FY 2021-22 DISTRICT ANALYSIS WORKSHEET City District Budget Cost Object No. Description Amount Estimate Comments 6018 Architect/Eng Services $15,300 $12,000^Contract eer's Report/Dist.Administration $3,300ction Charge(0.3%of Assessments) 6028 Landscape Maintenance $900,000 $900,0ai nance&Rehabilitation Projects 6132 Tree Tritruning Contract $155,000 $ ,000 tract-Approximately 1,500 Trees 6220 Street Light Energy $55,000 $50,983 Street Lights-Arterial&Collector $4,017 Street Lights-Local 6335 Electric $16,000 T116 000 11111kw9tion 6350 Water $100,000 $ WD Service Areas DISTRICT TOTAL $1,241,300 $1 241,300 Tustin Landscape and Lighting Reassessment District 2021 A-1 April 5,2021 Engineer's Report,FY2021-22 DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B Appendix B: Government Parcels Tustin Landscape and Lighting Reassessment District 2021 B-1 April 5,2021 Engineer's Report,FY2021-22 DocuSign Envelope ID:BEE51E5B-6008-493F-8E6A-88E4F576352B City of Tustin-FY 2021-22 4/5/2021 Tustin Landscape and Lighting Reassessment District 2021 Page 1 of 2 GOVERNMENT PARCELS BENEFIT CURRENT FY 2021-22 APN AREA LANDUSE ACRES DU'S ASSESSMENT OWNER COMMENTS 104-290-26 B PRK 6.26 0 $1,755.43 COUNTY OF ORANGE PETERS CANYON PARK 500-203-01 B PRK 4.251 0 $1,192.07 CITY OF TUSTIN CAMINO REAL PARK 500-221-07 B PRK 3.6 0 $1,009.52 CITY OF TUSTIN HERITAGE PARK 500-221-10 B PRK 1.358 0 $380.81 CITY OF TUSTIN HERITAGE PARK 500-233-02 B PRK 3.008 0 $843.51 CITY OF TUSTIN LAUREL GLEN PARK 500-291-26 A C/I 1.562 0 $33.55 CITY OF TUSTI Gov owned in FrolI19,open car storage per aerial 501-095-01 B PRK 15.275 0 $4,283.42 CITY OF TUSTI CITRUS RANCH PARK 501-095-08 B PRK 1.26 0 $353.33 CITY IN CITRUS RANCH PARK 501-095-09 B PRK 0.38 0 $106.56 CITY O ST CITRUS RANCH PARK 501-112-01 B SCH 5.81 0 $4,887.7 OL TIN UNIFIED DISTRICT TUSTIN RANCH ELEM.SCHOOL 501-112-05 B PRK 1.8 0 $5 6 N TUSTIN SPORTS PARK 501-112-06 B PRK 1.66 0 4&5.5 CITY OF TUSTIN TUSTIN SPORTS PARK 501-112-07 B PRK 0.24 0 $67.30 Cy+Y OF TUSTIN TUSTIN SPORTS PARK 501-112-08 B PRK 14.23 03,990.) CITY OF TUSTIN TUSTIN SPORTS PARK 501-112-12 B PRK 0.463 0 $1,r4 CITY OF TUSTIN TUSTIN SPORTS PARK 501-112-13 B SCH 1.297 0 $1,091.11 SCHOOL TUSTIN UNIFIED DISTRICT TUSTIN RANCH ELEM.SCHOOL 501-112-14 B PRK 1.21 0 $339.30 CITY OF TUSTIN TUSTIN SPORTS PARK 501-112-15 B SCH 0.79 0 $664.60 SCHOOL TUSTIN UNIFIED DISTRICT TUSTIN RANCH ELEM.SCHOOL 501-112-16 B PRK 0.45 0 $126.19 CITY OF TUSTIN TUSTIN SPORTS PARK 501-112-17 B SCH 2.08 0 $1,749.82 SCHOOL TUSTIN UNIFIED DISTRICT TUSTIN RANCH ELEM.SCHOOL 501-281-35 B SCH 9.901 0 $8,329.31 SCHOOL TUSTIN UNIFIED DISTRICT LADERA ELEMENTARY SCHOOL 502-451-24 B SCH 3.11 0 $2,616.32 TUSTIN UNIFIED SCHOOL DISTRICT PETERS CANYON ELEM.SCHOOL DocuSign Envelope ID:BEE51E5B-6008-493F-8E6A-88E4F576352B BENEFIT CURRENT FY 2021-22 APN AREA LANDUSE ACRES DU'S ASSESSMENT OWNER COMMENTS 502-451-25 B PRK 2.07 0 $580.47 CITY OF TUSTIN CEDAR GROVE PARK 502-451-27 B PRK 2.23 0 $625.34 CITY OF TUSTIN CEDAR GROVE PARK 502-451-28 B SCH 5.07 0 $4,265.18 TUSTIN UNIFIED SCHOOL DISTRICT PETERS CANYON ELEM.SCHOOL 502-451-29 B SCH 1.08 0 $908.56 TUSTIN UNIFIED SCHOOL DISTRICT PETERS CANYON ELEM.SCHOOL 502-451-30 B PRK 1.53 0 $429.04 CITY OF TUSTIN CEDAR GROVE PARK 502-451-31 B PRK 3.88 0 $1,088.03 CITY OF TUSTIN CEDAR GROVE PARK 502-451-32 B SCH 1.1 0 $925.39 TUSTIN UNIFIED SCHO RICT PETERS CANYON ELEM.SCHOOL 502-453-13 B C/I 1.25 0 $1,051.58 CITY OF TUSTIN FIRE STATION 502-521-07 B SCH 18.335 0 $15,424.51 SCHOOL TUST <NIFIE1aDIST PIONEER MIDDLE SCHOOL 525-022-03 B PRK 2.98 0 $835.65 CITY OF TUSTI PIONEER ROAD PARK DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B Appendix C: Maps and Exhibits Boundary Map Landscape Maintenance Exhibit Land Use Exhibit I Tustin Landscape and Lighting Reassessment District 2021 C-1 April 5,2021 Engineer's Report,FY2021-22 DocuSign Envelope ID:BEE51 E5B-6OC8-493F-8E6A-88E4F576352B REDUCED SCALE \ ]JyY1N IIYI Y wy+n-w owl Y AKT IIJ ]'trot-01 owl y IM CITY OF TUSTIN s TUSTIN LANDSCAPE AND LIGHTING �•e REASSESSMENT DISTRICT 2021 PETERS AY,o+ •� Ar ASSESSMENT DIAGRAM CANYON FOR THE REGIONALIA 3 PARK 1 2021-22 FISCAL YEAR IW IWr BOUNDARY MAP AW 4 INIo LEGEND BENEFIT AREA A nxr.nvn w.Iswe w=Yi BENEnT AREA B JeJ-wl-0 YJs es iuri r wx-elaf BENEFIT AREA C CITY BOUNDARY "".gam •'�' -w1-01 AJu m nL.oJ] saw-0I AJu u a so]�w-0I nw le "► eoa-m-u neu w N.�tl y� '`Aq�J,eJue ],�n names w z]-ma�nAu w Ax* I �o'Ye-IS-In wY%1 IIIY tlJ xtl11wN Jeww LIIT]w'eP�+Jpl�ll`H e]F}J-fpl M�mm I Jnyuy,w M1tl-G'10 -saw, au d� I— W-.11W-11111 11 wry e. AM Zr �� TMeeIrJL YI-IwVI AWTb !ti fe IIM• IIy If— ew IfYT w.1W _ Sol-Ion, � w Yl�li-w it f 11 Rte! �Y1 Lev !! I LIV I d IeWi 8 nel Y b1°`rww a 41"� W9:1 y ' II�M IIA wF]II-0{IJ �m"o+ X41 AY.T R�IAw �wc MR, ' AW b,Yln 9 AWT e.IJmtl 1N4-' vi ara N Y wr�e F 1 YP]II-0i 1 K !R anr� P n 1-0f !01_!n w$Y tw-]SIN �br !.� Harris & Associates,. 22 Executive Park,Suite 200—Irvine,CA 92614 PHONE:(949)655-3900 FAX:(949)655-3995 k\NM\fYll-]Y��agvne�b^I6o99Y11-]Y ln+i�6rY .%Ry'MPI DocuSign Envelope ID:BEE51 E5B-6OC8-493F-8E6A-88E4F576352B REDUCED SCALE CITY OF TUSTIN TUSTIN LANDSCAPE AND LIGHTING ., REASSESSMENT DISTRICT 2021 ASSESSMENT DIAGRAM PETERS CANYON „a•ar FOR THE REGIONAL ! � 2021-22 FISCAL YEAR PARK a�0alb!Illa1 r.A rN r LANDSCAPE MAINTENANCE EXHIBIT w,rre LEGEND s�„Is1 l W. .•. .rra ,."A LANDSCAPE MAINTENANCE rcr-r,-ae nau SLOPE MAINTENANCE r • \`� n•crr leer ""a� � Sebrlbl e1MIU II aat-rl- � "SCIYt<,rfl r Spfalbl elell Tl Mn�ga! 1y.nbl,lel a a!>xxu u rxa�erb,nrl a sp<+s�o!>xxu!o w til 'ti'• M��dIC' �.a Inu a aet�l.Irlu r adi� ,r8ep r ""Ml61xw �'� ,kiss em=.lbr llilr �-rwn wer rale® w Im m9�, 1r e I W. AIW,yr erl � f�lr I IMVa'!l�' !%-rr-01 Iran Sr •r afl-,rYp I Irur IrCr�fuw ap�`a-n u irWflaN �Im \J IILI,H frC �9J1 ,prey I Pe�t� •aim -D ua •ra � �� ,rn W+•-rr llv l4f fr-IeNi ,y la r IMAI! �1•CT I Ilk nY0nY0 ii�,ra}fy,9II I � Ref-ffvl fp I n nar xe.Irxr:—_.la n�ii� '�_ ♦ ii��is�ir0 . r ,loam nxs Wia.! .a m a' t fro �rr,aa a rer n ooam-er 3 Ilv�i1'01 .ee w r,.po � nucr r rssn� n�wl1O m W. W. 0°a _ n,la ran�aav � soa-aal- r..aa w•.n - sacro ,-nra Harris & Associates,. 22 Executive Park,Suite 200-Irvine,CA 92614 PHONE:(949)655-3900 FAX:(949)655-3995 k\iaa\eYtF]2wp•r�anrq Ne-]2 pbVadq J/`[f/M9 DocuSign Envelope ID:BEE51 E5B-6008-493F-8E6A-88E4F576352B REDUCED SCALE CITY OF TUSTIN TUSTIN LANDSCAPE AND LIGHTING REASSESSMENT DISTRICT 2021PETERS ASSESSMENT DIAGRAM CANYON CANYON FOR THE REGIONALA. 2021-22 FISCAL YEAR PARK ""m Stl-WI-0r nw n,n nau u asn u�s�ni--0oirwue+n�sri� Wrur LAND USE EXHIBIT Ste-Ol-'res A IW m ➢IET L>F <IO IIW W IN10 LEGEND ^" y, 1s161 +��N maalyl owl M Residential / lar.ww+W lm1 �i Iyi aI? Commercial e0-1- Vacant Parks r Covemment .w. g CoN Course x"'ae-ea-ul nMas u'�n'.nsl tm-w-ol mw u w City Boundary Is aR-t��re �-ei-rs weel W Ieeu �"° em�al neu a "� m'w-A-ai-a m'"wu a '�eIIQ56lsns I.q�rew ,,ISIr W lea/ � im ,wr nMl sr W�ml AI-0IYOrpu Y PWA � �M aM r A-In lel e11W, 16.As Y �� I�III-111 W raN ly p1, I xl-Mil,rW ,Im !ei-al-0f W IIN�/� aw - I IMV N m,r��j i� uw I uc wlc mil-Illspl •r nw.r Wr Wi1ev IOIIIIalI M �IIWM W _ e1l.MI yc c �rilti� eve nrrn WW�I1 � W IMI W Wf-label 11`4 m� I�1{LII u e" � �... y °a Misllcrm Ioa""vr�f r,fir/�e IMS eoo2= �pfL�r`�® ° �p 111N 1e a-llr m<, WU i € s p-frl-01 1n- 0 r-0 V M-Or �nlMn Ip IEY E fir - I I'/ rL h,�riu M D FW alley ,'ffi ,� _ i ' r IeiW ,� m-111_11 m-AfA -r211 f p Harris & Associates. 22 Executive Park,Suite 200-Irvine,CA 92614 PHONE:(949)655-3900 FAX:(949)655-3995 R\TwM\fY 1F11\Ayml/�unfaay All-1l loq uWl/r J/11/A9 DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B Appendix D: Required Contribution Tables Table 1 : Required Contribution for Landscaping General Benefit Table 2: Required Contribution for Jamboree Slope Landscaping General Benefit Table I Required Contribution for Arterial and Collector Lighting General Benefit Table 4: Required Contribution for Special Benefit to Out of District Parcels Table 5: Required Contribution Summary zis W\Mhh, Tustin Landscape and Lighting Reassessment District 2021 D-1 April 5,2021 Engineer's Report,FY2021-22 DocuSign Envelope ID:BEE51E5B-6008-493F-8E6A-88E4F576352B Appendix D TABLE 1 REQUIRED CONTRIBUTION FOR LANDSCAPING GENERAL BENEFIT STEP TASKDESCRIPTION RESULT CALCULATIONS 1. Determine the amount of the required contribution $60,033 Required Contribution for Landscaping General Benefit for landscaping general benefit by multiplying the total landscaping square footage of the District times District Landscaping Area SF* x $0.023/SF the landscaping general benefit cost per square foot 2,610,140 SF x $0.023/SF $60,033 *District landscaping area square footage does not include Jamboree Rd slope landscaping square footage because all of the general benefit for the andscaping is accounted in the calculation for that landscaping area 2425619 TABLEREQUIRED CONTRIBUTION FOR JAMBOREE RD PE LA4NDSCAPIN GENERAL BENEFIT STEP TASKDESCRIPTION RESULT CALCULATIONS Total SF %Share 1. Calculate the Jamboree Rd slope landscaping area as a 6.4 Jamboree Rd Slope Landscape Area 179,032 6.42% percentage of the total landscaping area for the District Remainder of District Landscape Area 2,610,140 93.58% 2,789,172 Jamboree Rd Slope Landscaping District Costs %of Total Share of Costs 2. Apply result from step 1 to the District landscaping $72, Landscape Maintenance $900,000 6.42% $55,272 budget to determine the Jamboree Rd slope landscapiTree Trimming Contract $155,000 6.42% $9,949 cost of services. Electric $16,000 6.42% $1,027 Water $100,000 6.42% $6,419 $1,171,000 $72,667 .................................................................................................................................................'DI ...................................................................................................................................................................................................................................................................3. Identify the amount of the required contribution for $72,667 Required Contribution for Jamboree Rd Slope Landscaping General Benefit Jamboree Rd slope landscaping general benefit from the result of step 3 Tustin Landscape and Lighting Reassessment District 2021 Page D-2 April 5,2021 Engineer's Report,FY2021-22 DocuSign Envelope ID:BEE51E5B-6008-493F-8E6A-88E4F576352B Appendix D TABLE 3 REQUIRED CONTRIBUTION FOR ARTERIAL LIGHTING GENERAL BENEFIT STEP TASK DESCRIPTION RESULT CALCULATIONS No.of Lights Total Lumens %Share 1. Determine the lumens from arterial lighting as a percentage 67.99% Arterial Lights(6,550 Lumens) 375 2,456,250 67.99% of the total lumens from all District lighting Collector Lights(6,550 Lumens) 11 72,050 1.99% Collector Lights(2,900 Lumens) 283 820,700 22.72% Local Residential Lights 91 263,900 7.30% To istrictLights 760 3,612,900 100.00% ................................................................................................................................................................................................................................................................................................. ................................................................................................................................................................................. District Lighting Budget 2. Apply results from step 1 to the District lighting budget to $37,392 %Share Share of Costs determine the arterial lighting portion of District lighting Arterial Lighting Cost 67.99% 537,392 cost of service Collector Lighting Cost 24.71% $13,591 Local Lighting Cost 7.30% $4,017 Total District Lighting Cost 100.00% $55,000 ............................................................................................................................................................................................................................................................ ..... ....................................................................................................................................................................................................... Lumens %Share 3. Calculate the percentage of lumens from 6,550 lumen lights 55.73% Special Benefit 2,900 44.27% that provide general benefit with a baseline of 2,900 lumens General Benefit 3,650 55.73% representing the special benefit portion of such lights 6,550 100.00% Arterial Lighting 4. Multiply the results from steps 2 and 3 to determine the $ 7 %of Total Cost portion of the arterial lighting costs attributable to General Benefit Share 55.73% $20,837 general benefit portion of the illumination provided by Special Benefit Share 44.27% $16,555 the 6,550 lumen arterial lights Arterial Lighting Cost 100.00% $37,392 ................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... 5. Identify the amount of the required contribution for ,837 Required Contribution for Arterial Lighting General Benefit arterial lighting general benefit from the reasult of s "11V Tustin Landscape and Lighting Reassessment District 2021 Page D-3 April 5,2021 Engineer's Report,FY2021-22 DocuSign Envelope ID:BEE51E5B-6008-493F-8E6A-88E4F576352B Appendix D TABLE 4 REQUIRED CONTRIBUTION FOR SPECIAL BENEFIT TO OUT OF DISTRICT PARCELS STEP TASKDESCRIPTION RESULT CALCULATIONS Total SF %Share 1. Calculate the Browning Ave landscaping area percentage 6.62% Browning Ave Landscape Area 184,521 6.62 of the total landscaping area for the District Remainder of District Landscape Area 2,604,651 93.38% 2,789,172 ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. Browning Ave Landscaping District Costs %of Total Share of Costs 2. Apply result from step 1 to the District landscaping budget $73,200 La pe Maintenance $900,000 6.62% $55,272 to determine the Browning Ave landscaping cost of services T ing Contract $155,000 6.62% $10,254 Electric $16,000 6.62% $1,058 Water 100,000 6.62% 6,616 $1,171,000 $73,200 ........................................................................................................................................................................................................................................................... .................... ................................. ............................................................................................................................................................. 3. Allocate the result of step 2 to the District and to the area $2,166 EDUs Allocation% Service Cost outside of the District based on total equivalent dwelling units District Share 7,690.42 97.04% $71,034 and share of the Browning Ave landscaping cost of services that Out of District Share 234.55 2.96% $2,166 is attributable to the area that is outside of the District Total 7,924.97 100.00% $73,200 ................................................................................................................................................................................................................................. ......... ................ ................................................................................................................................................................................................ 4. Identify the amount of the required contribution for $2,1 Contribution for Special Benefit to Out of District Parcels special benefit to parcels located outside of the District from the result of step 3 TA E 5 >neral'Benefit CONTRIBUTION SUMMARY REQUIRED CONTRIBUTION FOR GENH BENEAMOUNT Required Contribution for Arterial and Collector Li Gefit $20,537 Required Contribution for Landscaping General Benefit $60,033 Required Contribution for Jamboree Rd Slope Landscaping $72,667 Total Required Contribution for General Benefit $153,537 ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. REQUIRED CONTRIBUTION FOR SPECIAL BENEFIT AMOUNT Required Contribution for Special Benefit to Out of District Parcels $2 166 Total Required Contribution for Special Benefit $2,166 Total Required Contribution for General and Special Benefit 5155,703 Tustin Landscape and Lighting Reassessment District 2021 Page D-4 April 5,2021 Engineer's Report,FY2021-22 DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B Appendix E: Special Benefit to Parcels Outside the District OUT OF DISTRICT PARCELS EDU SUMMARY Land Us Parcels Dwellings Acres EDU's Single Family Residential 95 97 0.000 97.000 Multi-family Residential 21 21 0.000 15.750 ......................................................................................................................................................................................................................................................................................... Non-Residential 0 0 0.000 0.000 ......................................................................................................................................................................................................................................................................................... Schools 1 0 20.300 121.800 Golf Course 0 0 0.000 0.000 ......................................................................................................................................................................................................................................................................................... Public Parks 0 0 0.000 0.000 Total 117 118 20.300 234.550 Tustin Landscape and Lighting Reassessment District 2021 E-1 April 5,2021 Engineer's Report,FY2021-22 DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B ATTACHMENT 3 Sample Notice of Public Hearing and Ballot DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B Notice of Public Hearing Proposed Tustin Landscape and Lighting Reassessment District 2021 City of Tustin I. Notice This notice informs you,as a record owner of property within the existing Tustin Landscape and Lighting District(the"Existing District"), which was formed in 1985,of a proposed reassessment to the Existing District,hereafter referred to as Tustin Landscape and Lighting Reassessment District 2021 (the "Proposed District"). The purpose of the Proposed District is to establish new assessments for Fiscal Year 2021/22 and beyond that recover sufficient revenue to fund the landscape and lighting costs that benefit properties within the District boundaries. The Proposed District and related assessment would replace the existing assessment and ensure that the level of services that are currently provided today continue and are not reduced. The Existing District has been running an annual deficit for a number of years and this shortfall has been covered from remaining cash on hand from a previous bond that was used to construct the District landscape and lighting improvements.The remaining cash will be used for ongoing capital replacement and repair and the new assessments of the Proposed District will cover the ongoing annual landscape maintenance and lighting costs of the Proposed District. The City Council of the City of Tustin adopted a Resolution of Intention declaring its intention to establish the Proposed District and a Notice of Assessment and Assessment Ballot has been mailed to each affected parcel at least 45 days prior to the City holding a Public Hearing on the Proposed District.The Public Hearing has been scheduled for June 15,2021. If the Proposed District is approved by the property owners,the new assessments will replace the existing assessments and the Existing District will be dissolved. This will NOT be an additional assessment. The Public Hearing will be held during a regular meeting of the City of Tustin City Council on June 15,2021,at 5:30 p.m. In accordance with open meeting rules during the COVID-19 pandemic, members of the public are welcome to participate in the Virtual Public Hearing regarding the Proposed District and corresponding assessments on Tuesday,June 15,2021 at 5:30pm.To attend the virtual meeting, please visit www.tustinca.org/282/Meetings-Agendas for details and login information. All interested persons are invited to attend the Public Hearing and express opinions on the matter of the Proposed District and corresponding assessments. You will have an opportunity to speak, but verbal comments alone do not qualify as a formal protest. Property owners may submit their assessment ballot to the City Clerk prior to the close of the Public Hearing through Mail Delivery or In-Person Delivery as specified below. Persons who wish to submit an assessment ballot should mail or personally deliver it as shown below and in accordance with the directions provided on the back of the ballot under:"Summary of Assessment Ballot Procedures". Mail Delivery: If by mail, place the ballot in the mail with sufficient time to be received no later than June 15, 2021. If your ballot is not received by this time,the ballot will not be counted. Please note that postmarks cannot be accepted. Please mail the ballot to: City of Tustin Attn: City Clerk 300 Centennial Way Tustin, CA. 92780 Personal Delivery:The ballot may also be delivered directly to the City Clerk on or before the close of the Public Hearing. Ballots can be placed in the secured box located at the main entrance to City Hall before 5:00 p.m.on June 15,2021. Ballots will also be accepted at the Clifton C. Miller Community Center beginning at 5:30 p.m.on June 15,2021 through the end of the Public Hearing. Both sites are located within the Tustin Civic Center at 300 Centennial Way,Tustin Ca. 92780. DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B II. Assessment Information 1. Name of Assessment:Tustin Landscape and Lighting Reassessment District 2021 2. The Total Proposed Assessment for the Entire Proposed District of 5,704 parcels is$1,085,597 3. Your Proposed Total Assessment:The proposed maximum assessment on your property is shown on the assessment ballot. 4. Duration of the Proposed Assessment: The assessment for the maintenance of the landscaping improvements will be levied annually, with an annual adjustment for inflation connected to CPI,or until such time as the City no longer maintains the landscaping improvements. 5. Reason for the Proposed Tustin Landscape and Lighting Reassessment District 2021: To replace the Existing District in order to ensure the long-term health and sustainability of the District improvements by establishing new proposed assessments on benefiting parcels and to comply with current assessment laws and regulations. 6. Calculation of the Assessment: The assessment will be levied against all parcels that receive direct and special benefit from the maintenance and servicing of the landscaping improvements in the District. If the proposed new assessments are not approved,the Existing District and related assessments will continue to be levied on your parcel. The amount of the proposed assessment is calculated based upon the proportional special benefit received by each parcel to be assessed. The exact method and formula of spreading the assessment is set forth in the Engineer's Report for the Proposed District,a copy of which is on file with the City Clerk and available for review. The assessment shown on the ballot is the maximum amount that can be charged commencing in Fiscal Year 2021/22 and the maximum assessment amount may be adjusted annually based on the annual change in the Consumer Price Index(CPI)for All Urban Consumers, for the Los Angeles-Long Beach-Anaheim areas, with a minimum annual adjustment of 2%, not to exceed 5%. The actual assessments levied in any fiscal year will be as approved by the City Council and may not exceed the maximum assessment rate without receiving property owner approval for the increase. 7. Assessment Balloting Results: If 50%or more of the weighted assessment ballots returned support the new assessments associated with the Proposed District, the new maximum assessment shown on the enclosed ballot may replace the existing assessment levied on your property. If a majority of the ballots returned oppose the new assessments associated with the Proposed District, the proposed new assessment will not be imposed,and the existing assessment will continue to be levied on your property.Assessment Ballots are weighted proportionally by each parcel's proposed assessment amount(simplified,this means 1 vote for each$1 of proposed new assessment). III. Questions Regarding These Proceedings If you have any questions about this process, please contact Stacey Cuevas in the Public Works Department of the City at(714) 573-3037. Please leave a message with your name and phone number,and your call will be returned. DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B City of Tustin OFFICIAL ASSESSMENT BALLOT Attn: City Clerk CITY OF TUSTIN 300 Centennial Way Tustin CA Centennial Tustin Landscape and Lighting Reassessment District 2021 Assessor's Parcel Number: <apn> Property Address: <situs> Existing Maximum Assessment: $<current max> Proposed Maximum Assessment: $<proposed max> <owner> <owner2> <address> <city>, <state> <zip> The person completing and submitting this assessment ballot must be the record owner of the property identified above or the representative of the record owner of such property who is legally authorized to complete and submit this ballot for and on behalf of the record owner. Please see "Summary of Assessment Ballot Procedures" on the back of this ballot for assistance in filling out the ballot. If there are two or more property owners, only one needs to sign and return the ballot. Please mark your ballot in ink. Do not use pencil. Upon completion, fold the assessment ballot, place it in the return envelope provided and seal the envelope. Mail or deliver the assessment ballot to the address shown on the return envelope pursuant to the instructions on the back of this ballot. Please see the "Summary of Assessment Ballot Procedures" on the back of this sheet. For additional information about Tustin Landscape and Lighting Reassessment District 2021 (the "Proposed District"), please see the enclosed legal notice. This is not a bill. Please cut along this line, fold the ballot, seal in the provided envelope, and return to the City Clerk X- ------------------------------------------------------------- PROPERTY OWNER ASSESSMENT BALLOT 123-456-789 Assessor's Parcel Number: <apn> Owner Name: <owner> New Maximum Assessment for this Parcel: $<proposed max> F_J Yes, I am IN FAVOR of the proposed new maximum assessment of the Proposed District to replace the existing assessment of Tustin Landscape and Lighting District and provide continued landscape and lighting maintenance services, including an annual escalation factor based on the annual change in CPI-U Los JAngeles-Long Beach-Anaheim, with a minimum annual adjustment of 2%, not to exceed 5% in any year. F-1No, I am OPPOSED to the proposed new maximum assessment of the Proposed District to replace the existing assessment of Tustin Landscape and Lighting District and provide continued landscape and lighting maintenance services, including an annual escalation factor based on the annual change in CPI-U Los Angeles-Long Beach-Anaheim, with a minimum annual adjustment of 2%, not to exceed 5% in any year. MThe undersigned certifies under penalty of perjury that the undersigned W is entitled to complete and submit this assessment ballot. Signature of person completing assessment ballot Print name of person completing assessment ballot Date signed DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B SUMMARY OF ASSESSMENT BALLOT PROCEDURES If you are the owner of the property described on the Assessment Ballot, or the authorized representative of the record owner, you may submit the enclosed ballot to the City to support or oppose the new maximum assessment associated with the Proposed District. Please follow the instructions below to complete and return your ballot. 1. Register your vote on the enclosed ballot in favor or against the proposed changes by placing an "X" in the corresponding box. 2. Mark, sign and date your ballot in pen. (Assessment Ballots received without a signature will not be counted.) Please do not use pencil. 3. Place your completed ballot into the return envelope provided and seal the envelope. 4. Mail your Assessment Ballot to the City Clerk of the City of Tustin, at 300 Centennial Way, Tustin, CA 92780. 5. The City must receive mailed Assessment Ballots by June 15, 2021. Postmarks will not be accepted. 6. Ballot may also be delivered directly to the City Clerk on or before the close of the Public Hearing. Ballots can be placed in the secured box located at the main entrance to City Hall before 5:00 p.m. on June 15, 2021. Ballots will also be accepted at the Clifton C. Miller Community Center beginning at 5:30 p.m. on June 15, 2021 through the end of the Public Hearing. Both sites are located within the Tustin Civic Center at 300 Centennial Way, Tustin Ca. 92780. 7. Any ballots received after the close of the Public Hearing cannot legally be counted. 8. Following the close of the Public Hearing, the City Clerk or designee will tabulate the Assessment Ballots received. The ballots are weighted by the assessment amount for each property (simplified, this means one vote per each dollar of proposed assessment). 9. The new Proposed District and assessments may be confirmed unless a majority protest exists. A majority protest exists if, upon the close of the Public Hearing, the total assessments of received ballots submitted in opposition to the Proposed District exceeds the total assessments of received ballots submitted in favor of the Proposed District. 10. If a majority protest exists, the Proposed District will not be confirmed and the existing Tustin Landscape and Lighting District will remain in effect and continue to be levied in Fiscal Year 2021/22. 11. If a majority protest does not exist, the Proposed District and new assessments will be levied in Fiscal Year 2021/22 as detailed in the Engineer's Report. Assessment ballots that are submitted for tabulation shall remain on file with the City Clerk for at least two years, shall become part of the public record and shall become subject to public disclosure. The information in this notice and the accompanying materials were compiled and are distributed at public expense by the City of Tustin in compliance with Proposition 218. This information is presented in the public interest. It is not intended to influence or attempt to influence the actions of the property owners to cast ballots in favor or against the Proposed District and related assessments.