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HomeMy WebLinkAbout04 LANDSCAPE AND LIGHTING DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-1BC7CB10383E � Agenda 4 -- AGENDA REPORT Reeweldm v City Manager -M 5W Finance Director Ja MEETING DATE: MAY 5, 2020 TO: MATTHEW S. WEST, CITY MANAGER FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER SUBJECT: APPROVE THE ENGINEER'S REPORT FOR THE TUSTIN LANDSCAPE AND LIGHTING DISTRICT AND SET A PUBLIC HEARING TO CONSIDER LEVYING FISCAL YEAR 2020-2021 ASSESSMENTS SUMMARY At the February 18, 2020 meeting, the City Council ordered the preparation of an Engineer's Report for the Levy of Annual Assessments for the Tustin Landscape and Lighting District. The Engineer's Report has now been completed and is ready for City Council approval. Additionally, it is requested that the City Council declare its intention to levy annual assessments and set a public hearing for June 2, 2020. RECOMMENDATION It is recommended that the City Council: 1. Adopt Resolution No. 20-24 approving the Engineer's Report for the Tustin Landscape and Lighting District for Fiscal Year 2020-2021; and 2. Adopt Resolution No. 20-25 declaring its intention to levy annual assessments for Fiscal Year 2020-2021 and setting a public hearing for June 2, 2020. FISCAL IMPACT A portion of the landscape maintenance and public street lighting expenses within the Tustin Ranch area are recovered through the levy of the annual assessments for the District. The proposed Fiscal Year 2020-2021 budget is $1,319,100 with proposed assessments of $695,010. Included in the assessments is a charge of $11,615.41 to the City for parkland which will be paid through the City's general fund operating budget. In order to meet the District's budget needs at the conclusion of FY 2020-2021, the City must consider additional funding to cover a deficit currently projected at $624,090 from the Reassessment District 95-1 (RAD 95-1) Construction Fund (431) available balance. The Finance Department has projected the RAD 95-1 Construction Fund balance at the end of FY 2019-2020 to be approximately $1,025,000. Staff anticipates the RAD 95-1 Construction fund balance will be exhausted by the end of FY 2021- 2022. Staff has hired a consultant to evaluate a new assessment methodology and annual assessment amounts for the District. This effort will be followed by public outreach and mailing of ballots. For assessments, votes are tabulated in proportion to the amount of the assessment each property owner would pay. The assessment may be imposed only if 50 percent or more of the weighted ballots support the assessment. Should there be less than 50 percent support for the new assessment, the current assessment will remain in effect. 62 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-1BC7CB10383E Tustin Landscape and Lighting District May 5, 2020 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 XIID 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 2019-2020 to be approximately $1,025,000. DISCUSSION Based on the results of the 1997 ballot proceedings, the base assessment rate for Fiscal Year 1997-1998 may be increased in subsequent years by no more than the increase in the CPI for all urban consumers for the Los Angeles, Anaheim, and Riverside area. The percentage increase in the CPI for calendar year 2019 is 3%. The District's budget for Fiscal Year 2020-2021 has been increased per the maximum allowed by Proposition 218 to offset anticipated increases in operating expenses. 63 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-1BC7CB10383E Tustin Landscape and Lighting District May 5, 2020 Page 3 Each year, the City estimates the cost to provide the street lighting and landscape maintenance services within the District. Staff estimates the proposed FY 2020-2021 budget to be $1,319,100, comprised of the following major components: arterial and collector street lighting; local residential lighting; and parkway, slope and trail landscaping. The resulting total costs to be assessed for lighting and landscape maintenance for Fiscal Year 2020-2021 are $50,061 and $644,949 respectively, for a total operating and maintenance assessment of $695,010. This total cost is then divided among the parcels on a proportionate share, based on a report prepared by consultant engineers. The precise method used to establish each parcel's special benefit may vary according to land usage and benefit area, but similar parcels with equal benefit from the District pay equal assessments. There are 5,704 parcels within the District for Fiscal Year 2020-2021, which is one less parcel from the previous fiscal year, which represents a parcel consolidation. 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: • Benefit Area "A" (ACLT)........................................................$4.88 per year • Benefit Area "B" (ACLT + PSTL).............................................$88.15 per year • Benefit Area "C" (ACLT +PSLT + LRLT).................................$122.44 per year The Engineer's Report prepared by Harris & Associates has been filed with the City Clerk and contains the following proposed levy of assessments for Fiscal Year 2020-2021 along with a comparable listing to last year's assessment. 64 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-1BC7CB10383E Tustin Landscape and Lighting District May 5, 2020 Page 4 ASSESSMENT RATE SUMMARY BY LAND USE FY 2019-20 FY 2020-21 BENEFITAREA A B C A B C ACLT+ ACLT+PSTL ACLT ACLT+ ACLT+PSTL + LAND USE ACLT PSTL + LRLT PSTL LRLT Single Family Res. ($/Dwelling Unit) $85.58/DU $118.87/DU $88.15/DU $122.44/DU Multi-family Res. ($/Dwelling Unit) $64.19/DU $66.11/DU Non-Residential ($/ac) $513.48/ac $528.90/ac Non-Res-Tustin Market Place($/ac) $24.66/ac $29.28/ac Golf Course($/ac) $342.32/ac $352.60/ac Vacant and Parks($/ac) $171.16/ac $176.30/ac It is recommended that the City Council adopt the two attached resolutions. These resolutions provide for the following: • Resolution No. 20-24 approves the Engineer's Report for the Tustin Landscape and Lighting District for Fiscal Year 2020-2021. • Resolution No. 20-25 declares the City Council's intention to provide for an annual levy of assessment for the Tustin Landscape and Lighting District to levy and collect assessments pursuant to the Landscape and Lighting Act of 1972. Resolution No. 20-25 also sets the date, time, and place for a public hearing concerning the annual levy of assessment for the District. The hearing is proposed for Tuesday, June 2, 2020 at 5:00 p.m. in the City Council Chamber, 300 Centennial Way, Tustin, California. P . Stack, P.E. f Public Works/City Engineer Attachment(s): 1. Resolution No.20-24 2, Resolution No.20-25 3. Engineer's Report for Tustin Landscape and Lighting District, Fiscal Year 2020-2021 S:\City Council Items\2020 Council Items\05-05-2020\Approve and Set Public Hearing TLLD\Set a Public Hearing for TL&LD 20- 21.docx 65 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-1BC7CB10383E RESOLUTION NO. 20-24 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA APPROVING THE ENGINEER'S REPORT FOR THE TUSTIN LANDSCAPE AND LIGHTING DISTRICT LEVY OF ANNUAL ASSESSMENTS FOR FISCAL YEAR 2020- 2021 WHEREAS, by Resolution No. 20-09, the City Council initiated proceedings for the 2020-2021 Fiscal Year for the levy of annual assessments and ordered the Engineer to prepare a report in accordance with Section 22565 of the State of California Streets and Highways Code and Proposition 218; and WHEREAS, pursuant to said Resolution, the Engineer has filed the report with the City Clerk; and WHEREAS, the City Clerk has submitted the report to the City Council and the City Council now has reviewed and examined the report as so submitted. 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 report entitled "Engineer's Report for Tustin Landscape and Lighting District, Fiscal Year 2020-2021" prepared by the Engineer, Harris & Associates, dated April 8, 2020, including description of improvement, estimated costs and diagram, as filed with the City Clerk, is hereby approved. Section 2: A copy of this report shall remain on file in the office of the City Clerk. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin held on the 5t" day of May, 2020. DR. ALLAN BERNSTEIN, Mayor ATTEST: ERICA N. YASUDA, City Clerk 66 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-1BC7CB10383E 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. 20-24 was duly and regularly passed and adopted at a regular meeting of the City Council held on the 5t"day of May, 2020 by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: ERICA N. YASUDA, City Clerk 67 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-1BC7CB10383E RESOLUTION NO. 20-25 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA DECLARING ITS INTENTION TO PROVIDE FOR AN ANNUAL LEVY OF ASSESSMENT FOR FISCAL YEAR 2020-2021 FOR THE IMPROVEMENT, MAINTENANCE AND SERVICING OF PUBLIC LANDSCAPING AND LIGHTING FACILITIES IN THE TUSTIN RANCH AREA WITHIN THE BOUNDARIES OF THE TUSTIN LANDSCAPE AND LIGHTING DISTRICT AND TO LEVY AND COLLECT ASSESSMENTS PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972 AND PROPOSITION 218 AND GIVING NOTICE THEREOF WHEREAS, the City Council by Resolution No. 20-09 initiated proceedings for the annual levy of assessments for the Tustin Landscape and Lighting District pursuant to the provisions of the Landscaping and Lighting Act of 1972 (Part 2, Division 15 of the California Streets and Highways Code) as amended and Proposition 218; and WHEREAS, by said Resolution No. 20-09, 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 Engineer did prepare and file such a report and it was approved by the City Council on the 5t" day of May 2020, with the passage and adoption of Resolution No. 20-24. 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 public interest and convenience require and it is the intention of the City Council of the City of Tustin to order the annual levy of assessments for Fiscal Year 2020-2021 and to levy and collect said assessments pursuant to the provision of said Landscaping and Lighting Act of 1972 (Part 2 of Division 15 of said Streets and Highways Code) as amended and Proposition 218. Section 2: That the improvements to be undertaken consist of the installation, maintenance, servicing and operations of those certain public landscaping and lighting facilities located within the Tustin Landscape and Lighting District. The Assessment District designated as Tustin Landscape and Lighting District generally encompasses the portion of the City known as East Tustin, being north of the 1-5 Freeway and east of Browning Avenue except the areas of all public streets, avenues, lanes, alleys, and rights-of-way provided, however, notwithstanding property owned by the railroad and public utility companies not used for public purposes shall be included in the district and not be excluded pursuant to the aforesaid exceptions. Section 3: That reference is hereby made to the Engineer's Report on file with the City Clerk and open to inspection for a fully detailed description of the improvements, the boundaries of the Assessment District and any areas therein, and the proposed assessments upon assessable lots and parcels of land within the District. Section 4: That said proposed maintenance, servicing and operation of landscaping and lighting, in the opinion of the City Council of the City of Tustin will be to the benefit of the property lying within the described boundaries of the Assessment District as said Assessment District is described and defined in said Engineer's Report. 68 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-1BC7CB10383E Section 5: Notice is hereby given that Tuesday, June 2, 2020, at the hour of 5:00 p.m. in the Tustin City Council Chamber, 300 Centennial Way, Tustin, California 92780 is hereby fixed as the time and place where all interested persons may appear before the City Council and be heard concerning the annual levy of assessments of the District, and extent of the District, the services to be performed, and the proposed assessment and all other matters relating thereto. Protests must be in writing and must be filed with the City Clerk prior to the conclusion of the hearing. Any such protest shall state all grounds of the objection and, if filed by the property owner, shall contain a description sufficient to identify the property. Section 6: The City Clerk shall cause notice of the hearing to be given by causing the Resolution of Intention to be posted and published in the manner required by Part 2 of Division 15 of the Streets and Highways Code. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin held on the 5t" day of May, 2020. DR. ALLAN BERNSTEIN, Mayor ATTEST: ERICA N. YASUDA, City Clerk 69 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-1BC7CB10383E 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. 20-25 was duly and regularly passed and adopted at a regular meeting of the City Council held on the 5t" day of May, 2020 by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: ERICA N. YASUDA, City Clerk 70 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-1BC7CB10383E Engineer's Report Tustin Landscape and Lighting District Fiscal Year 2020-21 April 8, 2020 Prepared fori%: 1 w�. City of Tustin 300 Centennial Way Tustin, CA 92780 mmmmmmmmw Prepared by: !> Harris & Associates ii 22 Executive Park, Suite 200 Irvine, California 92614 (949) 655-3900 71 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-1BC7CB10383E ENGINEER'S REPORT TUSTIN LANDSCAPE AND LIGHTING DISTRICT 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 8, 2020 pFESS/ M, eo` Harris & Associates NO. 061383 � CMV— ,��r BY: Alison Bouley,P.E. of c�.� 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 , 2020. 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 , 2020. City Clerk, City of Tustin Orange County, California By City of Tustin i April 8, 2020 Landscape and Lighting District, FY2020-21 Engineer's Report 72 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-1BC7CB10383E Table of Contents Introduction...............................................................................................................................1 Report....................................................................................................................................3 Section 1 Plans and Specifications.......................................................................1-1 Section 2 Estimate of Costs...................................................................................2-1 Section 3 Assessment Roll....................................................................................3-1 Section 4 Method of Apportionment of Assessment ...........................................4-1 Section 5 Property Owner List...............................................................................5-1 Section 6 Assessment Diagram.............................................................................6-1 Appendices Appendix A: Budget Detail / Maximum Assessment Rate Calculations Appendix B: Cost &Assessment Comparison Appendix C: Government Parcels Appendix D: District Maps Preliminary Assessment Roll (under separate cover) City of Tustin ii April 8, 2020 Landscape and Lighting District, FY2020-21 Engineer's Report 73 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-1BC7CB10383E Introduction History The purpose of this report is to set forth findings and the engineering analysis to levy the assessments in the Tustin Landscape and Lighting District for the 2020-21 fiscal year. The District was formed on July 15, 1985 to install and maintain certain street lighting and landscaping in the area bounded by Browning Avenue, Irvine Boulevard, Jamboree Road (formerly Myford Road) and the I-5 Freeway within the City of Tustin. Assessments for the benefiting property were confirmed for the first fiscal year, 1985-86, and each fiscal year thereafter. As property developed in the Tustin Ranch area, such development was required to annex to the District. The current boundary is shown on the Assessment Diagram/Boundary Map, which is included in the Appendix. As a result of the new procedures required by Proposition 218 (Prop. 218), which was approved on the November 1996 Statewide ballot and added Article XIIID to the State Constitution, the City re-analyzed the District regarding the special benefits associated with the improvements for each property in the District, for the 1997-98 fiscal year. Notices and ballots to approve the Assessment, including a Consumer Price Index (CPI) adjustment, were mailed to all property owners in the District, and a majority of the returned Assessment ballots approved the Assessment, including potential adjustments for increases in the CPI in future years. Improvements The District 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. The District does not install or maintain parks or median islands in roadways. Scope of Report This report covers the levy of annual assessments for the 2020-21 fiscal year, based on the methodology adopted by the City Council in the 1997-98 fiscal year. The base assessment rate which may be levied for each Equivalent Dwelling Unit (EDU)may be increased by the CPI for all Urban Consumers for the Los Angeles, Anaheim, Riverside Area in any calendar year. The intent of applying the annual CPI adjustment to the base assessment rate is to maintain the value of the maintenance work, in relation to the increased cost of the maintenance. Therefore, the rates applied in FY 1997-98 are equal to the maximum rates today, when you consider the increased cost of living. In 1997, property owners within the District were noticed for and they approved, by assessment ballot proceeding, potential adjustments in the rates based on the annual CPI. The CPI for Calendar Year 2019 (December 2018 to December 2019) is 3.0%. Since the City of Tustin 1 April 8, 2020 Landscape and Lighting District, FY2020-21 Engineer's Report 74 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-1BC7CB10383E notice to property owners in 1997 included a potential CPI adjustment each subsequent year, and the property owners approved the potential range of rates, it is not necessary to hold an assessment ballot proceeding any year in which such an adjustment is made. For the calculation of the maximum assessment for each Fiscal Year, please refer to the Appendix. City of Tustin 2 April 8, 2020 Landscape and Lighting District, FY2020-21 Engineer's Report 75 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-1BC7CB10383E Report CITY OF TUSTIN FISCAL YEAR 2020-21 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 DISTRICT hereinafter referred to as the "Assessment District" or "District", I, Alison Bouley, P.E., the authorized representative of Harris & Associates, the duly appointed ENGINEER OF WORK, submit herewith the "Report" consisting of six (6)parts 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 An estimate of the costs of the proposed improvements, 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. SECTION 3 ASSESSMENT ROLL An assessment of the estimated cost of the improvements on each benefited lot or parcel of land within the Assessment District is on file in the Office of the City Clerk and incorporated herein by reference. City of Tustin 3 April 8, 2020 Landscape and Lighting District, FY2020-21 Engineer's Report 76 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-1BC7CB10383E SECTION 4 METHOD OF APPORTIONMENT The method of apportionment of assessments indicates the proposed assessment of the net amount of the costs and expenses of the improvements to be assessed upon the several lots and parcels of land within the Assessment District in proportion to the estimated special benefits to be received by such lots and parcels. SECTION 5 PROPERTY OWNER LIST A list of the names and addresses of the owners of real property within this Assessment District, as shown on the last equalized roll of the Assessor of the County of Orange, is keyed to the records of the Assessor of the County of Orange which are incorporated herein by reference. SECTION 6 ASSESSMENT DISTRICT DIAGRAM The Diagram of the Assessment District Boundaries showing the exterior boundaries of the Assessment District, the boundaries of any benefit areas within the Assessment District and the lines and dimensions of each lot or parcel of land within the Assessment 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 Assessment District are those lines and dimensions shown on the maps of the Assessor of the County of Orange for the fiscal year to which this Report applies. The Assessor's maps and records are incorporated by reference herein and made part of this Report. City of Tustin 4 April 8, 2020 Landscape and Lighting District, FY2020-21 Engineer's Report 77 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-1BC7CB10383E Section 1 Plans and Specifications The facilities, which have been constructed within the City of Tustin, and those which may be subsequently constructed, will be serviced and maintained as generally described as follows: DESCRIPTION OF IMPROVEMENTS FOR THE CITY OF TUSTIN LANDSCAPE AND LIGHTING DISTRICT FISCAL YEAR 2020-21 The existing facilities to be maintained and serviced include street lighting and arterial landscaping as described herein. LIGHTING 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. The street lighting system in the District consists of 760 lights. A summary by type and size follows: No. Size of Lumens Tyne of Light 386 6,550 Light Emitting Diode 374 2,900 Light Emitting Diode The area is built-out; therefore no additional street lights are anticipated. LANDSCAPING The arterial landscaping includes parkway, slope and trail landscaping in the Tustin Ranch area, specifically: • The southerly side of Bryan Avenue between Browning Avenue and Tustin Ranch Road • The northerly side of Bryan 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. City of Tustin 1-1 April 8, 2020 Landscape and Lighting District, FY2020-21 Engineer's Report 78 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-1BC7CB10383E • 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 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 slopes on the westerly side of Jamboree Road between the northerly City limits and 600 feet southerly • The slopes and parkways on the easterly side of Jamboree Road between the northerly City limits and Tustin Ranch Road, including the slopes granted to the City by the Transportation Corridor Agency per Instrument No. 1999048101 recorded January 22, 1999 (net acreage increase of 4.11 acres) • La Colina Drive, northerly and southerly sides, between Tustin Ranch Road and the westerly City limits • Portola Parkway, both northerly and southerly sides, between Jamboree Road and Tustin Ranch Road • Equestrian/Hiking Trail between Tustin Ranch Road/Portola Parkway and Peters Canyon Regional Park • Paseo for public access between Jamboree Road and Pioneer Road adjacent to Tract Numbers 14366 and 14576 The total landscaped area is approximately 51 acres. These areas are shown on the Landscape Maintenance Facilities Map, in the Appendix. The District will fund costs in connection with the District maintenance and servicing including, but not limited to, personnel, electrical energy, water, materials, contracting services, and other expenses necessary for the satisfactory operation of these facilities. Reference is made to Part "D" of this report for a discussion of the Benefit Areas and the facilities associated with them which are serviced and maintained. The facilities are described as follows: City of Tustin 1-2 April 8, 2020 Landscape and Lighting District, FY2020-21 Engineer's Report 79 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-1BC7CB10383E Landscaping and Appurtenant Facilities Facilities include but are not limited to: Landscaping, planting, shrubbery, trees, irrigation systems, hardscapes, fixtures, sidewalk maintenance resulting from landscape growth and appurtenant facilities, in public rights-of-way, parkways, and dedicated easements within the boundaries of said Assessment District. Lighting and Appurtenant Facilities Facilities include but are not limited to: poles, fixtures, bulbs, conduits, conductors, equipment including guys, anchors, posts and pedestals, metering devices and appurtenant facilities as required to provide lighting in public rights-of-way and dedicated easements within the boundaries of said Assessment District. 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. Maintenance means the furnishing of services and materials for the ordinary and usual operation, maintenance and servicing of the landscaping, public lighting facilities and appurtenant facilities, including repair, removal or replacement of all or part of any of the landscaping, public lighting facilities or appurtenant facilities; 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 means the furnishing of water for the irrigation of the landscaping and the maintenance of any of the public lighting facilities or appurtenant facilities and the furnishing of electric energy for the public lighting facilities, or for the lighting or operation of landscaping or appurtenant facilities. 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 file in the office of the City Engineer and are by reference herein made a part of this report. City of Tustin 1-3 April 8, 2020 Landscape and Lighting District, FY2020-21 Engineer's Report 80 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-lBC7CB10383E Section 2 Estimate of Costs The City's budget for the maintenance and service costs, shown below, details the estimated costs and fund balances for Fiscal Year 2020-21 as available at the time of preparation of this report. The 1972 Act provides that the total cost can be recovered in the assessment spread including incidental expenses. This was not changed by Article XIIID of the California Constitution. The costs can include engineering fees, legal fees, printing, mailing, postage, publishing, and all other related costs identified with the district proceedings. FY 2020-21 BUDGET&ASSESSMENT District Less Projected General Reserve Admin. Fund Balance Benefit Total to Service Category Budget (50%Max.) (*No.6018) 6/30/2020 Contribution Asmt Arterial and Collector Street Lighting $57,000 $0 $616 $0 ($15,673) $41,943 *Object No.6220 Local Residential Lighting $8,000 $0 $86 $0 $0 $8,086 *Object No.6220 Parkway,Slope and Trail Landscaping $1,240,000 $0 $13,398 $0 ($99,929) $1,153,469 *Object Nos.6028,6132,6335,6350 Totals $1,305,000 $0 $14,100 $0 ($115,602) $1,203,498 Total to Assessment: $1,203,498 *For descriptions of the object numbers,refer to the'Budget Detail'table in the Appendix. Note: District Administration Costs are prorated based on the Budget Amounts and include Orange County's charge of 0.3%of the assessment for placement and collection on the property tax roll. The District Administration has been prorated based on the budget amounts. The Total to Assessment shows the total amount that can be spread to the parcels within the district, however due to the maximum assessment rates, the entire amount will not be able to be collected. The 1972 Act requires that a special fund be set-up for the revenues and expenditures of the District. Funds raised by assessment shall be used only for the purpose as stated herein. The City will make funds available to the District to ensure adequate cash flow and will be reimbursed upon receipt of assessments. Any balance or deficit remaining on July 1 must be carried over to the next fiscal year. The 1972 Act allows a reserve for cash flow not to exceed 50% of the budget. For a breakdown of the costs by Service Category and Benefit Area,please see `Benefit Areas" on page 4-7 of this report. City of Tustin 2-1 April 8, 2020 Landscape and Lighting District, FY2020-21 Engineer's Report 81 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-1BC7CB10383E Section 3 Assessment Roll The Assessment Roll is a listing of the proposed assessment and the amount of assessment for Fiscal Year 2020-21 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. City of Tustin 3-1 April 8, 2020 Landscape and Lighting District, FY2020-21 Engineer's Report 82 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-1BC7CB10383E Section 4 Method of Apportionment of Assessment GENERAL The 1972 Act permits the establishment of assessment districts by cities for the purpose of providing certain public improvements which include the construction, maintenance and servicing of street lights, traffic signals and landscaping facilities. 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 distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements. The 1972 Act permits the designation of areas of benefit within any individual assessment district if"by reason of variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvements." (Sec. 22574). Thus, the 1972 Act requires the levy of a true "assessment" rather than a "special tax." In addition, Proposition 218 (Prop. 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. Prop. 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. REASON FOR THE ASSESSMENT The assessment is proposed to be levied to defray the costs of the maintenance and servicing of landscaping, lighting and appurtenant facilities, including but not limited to, personnel, electrical energy, utilities such as water, materials, contracting services, and other items necessary for the satisfactory operation of these services. EQUIVALENT DWELLING UNITS Since the assessment will be levied against parcels of property as shown on the tax roll, the final charges must be assigned by Assessor's Parcel Number. If assessments were to be spread just by parcel, not considering land use or parcel size, a single family parcel would be paying the same as a 50 unit apartment parcel or a large commercial establishment in a similar zone and this would not be equitable. City of Tustin 4-1 April 8, 2020 Landscape and Lighting District, FY2020-21 Engineer's Report 83 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-1BC7CB10383E The single family residential lot has been selected as the basic unit for calculation of assessments and is defined as one Equivalent Dwelling Unit(EDU). A methodology has been developed to calculate the EDU's for other residential land uses and for non-residential parcels. Every land- use is converted to EDU's: parcels containing apartments are converted to EDU's based on the number of dwelling units on each parcel of land; commercial parcels are converted based on the lot size of each parcel of land. The EDU method is seen as the most appropriate and equitable method of spread for landscape and lighting districts, as the benefit to each parcel from the improvements are apportioned as a function of land-use type and size. Single Family Residential (SFR). Parcels zoned for single family residential uses are assessed 1 EDU per dwelling unit. Parcels designated as SFR land-use will be assessed 1 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. Due to population density and size of structure relative to the typical single family residence, each dwelling unit defined as multi-family residential, including condominiums, would be 0.75 EDU. The EDU's assigned to a multiple-residential parcel are calculated by multiplying the number of dwelling units by the EDU factor of 0.75. 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's per acre. These include commercial, industrial, church, school and other non-residential uses. Vacant Parcels with No Development Designation. Vacant parcels with no development designation or without a tentative or final map are assigned a reduced equivalency due to their current lack of immediate development potential. Based upon the opinions of professional appraisers appraising current market property values for real estate in Southern California, the land value portion of a property typically ranges from 20 to 30 percent of the total value of the property. In Tustin Ranch, the land value portion of a single family detached residence appears to be typically one-third or higher of the total value based on the County Assessor's tax rolls. Therefore, vacant parcels are assigned equivalency units at the rate of one-third of improved property which is 6 City of Tustin 4-2 April 8, 2020 Landscape and Lighting District, FY2020-21 Engineer's Report 84 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-1BC7CB10383E EDU/acre x one-third=2 EDU/acre. Park parcels are also considered as vacant with no development potential and are assessed at that rate. Peters Canyon Regional Park is a large, natural, open space park with very few facilities, which straddles the cities of Orange and Tustin and a portion of unincorporated county area. The park has many access 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. At the time the district was formed, there were seven developed parks, five public parks (Camino Real, Cedar Grove, Heritage, Laurel Glen, and the Tustin Sports Park) and two private parks, with an average park size of 6.26 acres. Therefore, 6.26 acres have been used to estimate the relative benefit Peters Canyon Regional Park receives. Golf Course Property. Golf Course parcels are developed commercial property, but the development is at a very low level. Therefore, golf course parcels are assessed at a rate between developed and vacant land, at twice the rate of vacant parcels with no development designation, which is 2.0 EDU/acre x 2 =4.0 EDU/acre. Public Property. Article XIIID of the California Constitution requires that all benefiting public properties be assessed for their fair share of the special benefit. Public property which is designated for residential or non-residential purposes (such as schools and fire stations)will be assessed the same as private property with the same designation. Public parks will be assessed the same as vacant parcels with no development designation. Exempt Property. Excepted from the assessment would 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 would be utility rights-of-way, common areas (such as in condominium complexes), landlocked parcels, unbuildable parcels vacated by the City, and parcels designated on Tract or Parcel Maps for landscaping. EQUIVALENT DWELLING UNIT(EDU)FORMULA Land Use Basic Unit x EDU Factor = EDU Rates Single Family Res.(SFR) 1 D.U. x 1.00 = 1 EDU/DU Multi-family Res.(including Condos 1 D.U. x 0.75 = 0.75 EDU/DU Commercial/Industrial and other Non-Residential(including Schools) 1 Acre x 6.00 = 6.0 EDU/ac Vacant(including Parks 1 Acre x 2.00 = 2.0 EDU/ac Golf Courses 1 Acre x 4.00 = 4.0 EDU/ac City of Tustin 4-3 April 8, 2020 Landscape and Lighting District, FY2020-21 Engineer's Report 85 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-1BC7CB10383E BENEFIT ANALYSIS STREET LIGHTING BENEFIT Proper maintenance and servicing of the street lighting system benefits all properties within the District by providing security, safety and community character and vitality as outlined below. Street lights provide only incidental benefits to motorists traveling to, from or through the area. SPECIAL BENEFITS OF STREET LIGHTING Security and Safety Community Character and Vitality • Mitigates crime • Promotes social interaction • Alleviates the fear of crime • Promotes business and industry • Enhances pedestrian safety • Contributes to a positive nighttime visual image A large portion of the City of Tustin is within an Ad Valorem Lighting Maintenance District and is paying for the operation and maintenance of street lights in a similar manner. The area covered by this District was not a part of this Ad Valorem Maintenance District. Therefore, in 1985, to fund the public street lights in the developing area, the City established the 1972 Landscape and Lighting District. Those properties that are adjacent to private streets pay for their local private street lights through their Home Owners Association fees. Arterial and Collector Lighting. Street lighting on the arterial and collector streets provides special 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. The portion of the arterial lighting above what is required to illuminate a typical residential neighborhood is for vehicular traffic and is a general benefit. The typical local light is 2,900 lumens whereas the arterial light is 6,550 lumens, therefore 55.73% of the arterial light cost is general benefit. Lighting at intersections, which is defined as safety lighting, is considered to be the minimum lighting requirement for vehicular safety; therefore, safety lighting represents the general benefit portion of street lighting and is not assessed. Traffic Signals are also considered to provide a general benefit and are not assessed. Street lights which are not adjacent to the development in the District are deemed not to benefit the area. 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 the costs will not be assessed. City of Tustin 4-4 April 8, 2020 Landscape and Lighting District, FY2020-21 Engineer's Report 86 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-lBC7CB10383E The following table shows the number of parcels, dwellings, acres and EDUs for each land use type that receive this benefit. Arterial&Collector Lighting Benefit FY 2019-20 FY 2020-21 By Land Use Parcels Dwellings Acres EDU's Parcels Dwellings Acres EDU's Single Family Res. 2,626 2,626 2,626.000 2,626 2,626 2,626.000 Multi-family Res. 2,974 5,100 3,825.000 2,974 5,100 3,825.000 Non-Residential 61 183.617 1,101.702 60 184.487 * 1,106.922 Schools 10 48.573 291.438 10 48.573 291.438 Vacant 0 0.000 0.000 0 0.000 0.000 Parks 22 72.135 144.270 22 72.135 144.270 Golf Course 1 12 151.991 607.9641 12 151.991 607.964 Total 5,705 7,726 456316 8,596.3741 5,704 7,726 457.186 8,601.594 *assessor adjusted acreage due to parcel consolidations Local Residential Lighting. 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. 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 eighty- seven local residential 2,900 lumen lights and four 6,550 lumen lights. The cost for these lights is assessed only to these benefiting parcels. The following table shows the number of parcels, dwellings and EDUs that receive this benefit. There were no changes from the previous fiscal year. Local Residential Lighting Benefit By Land Use Parcels Dwellings EDU's Sin le Family Residential 369 369 369.000 369 369 369.000 LANDSCAPING BENEFIT Trees, landscaping, hardscaping and appurtenant facilities, if well maintained, provide beautification, shade and enhancement of the desirability of the surroundings, and therefore increase property value. In Parkways and Land Values, written by John Nolan and Henry V. Hubbard in 1937, it is stated: ...there is no lack of opinion, based on general principals and experience and common sense, that parkways do in fact add value to property, even though the amount cannot be determined exactly.... Indeed, in most cases where public money has been spent for parkways the assumption has been definitely made that the proposed parkway will show City of Tustin 4-5 April 8, 2020 Landscape and Lighting District, FY2020-21 Engineer's Report 87 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-1BC7CB10383E a provable financial profit to the City. It has been believed that the establishment of parkways causes a rise in real estate values throughout the City, or in parts of the City, ... It should be noted that the definition of"parkways" above may include the roadway as well as the landscaping alongside the roadway. Landscaping along recreational trails and greenbelts, if well maintained, provide beautification and enhancement of the desirability of the surroundings, and therefore increase property value. In Greenways for America by Charles E. Little, it is stated: ... [real estate] agents routinely advertise properties as being on or near the trail.... property near but not immediately adjacent to the Burke-Gilman Trail is significantly easier to sell and, according to real estate agents, sells for an average of 6 percent more as a result of its proximity to the trail. Property immediately adjacent to the trail, however, is only slightly easier to sell.... trails are an amenity that helps sell homes, increase property values and improve the quality of life. Additionally, the National Recreation and Park Association, in June 1985, stated: The recreation value is realized as a rise in the value of land and other property in or near the recreation area, and is of public interest to the taxpayers, who have a stake in a maximum of total assessed values. The District enjoys a higher level of landscaping and streetscaping in their 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, linked with the regional trail system, is landscaped and beautified by the District. The landscape improvements along the arterial and collector streets, in the parkways and slopes, and the regional trail enhance the beauty of the area and benefit all parcels in the community. Excepted from this landscaping benefit are the Tustin Marketplace, Tustin Annex, and the Tustin Auto Center, which provide their own landscaping adjacent to their properties at an even higher level than the rest of the District. Landscaping along roadways provides only incidental benefits to motorists traveling to, from or through the area. Slopes along the easterly side of Jamboree Road are considered general benefit and reflect 8.1% of the total landscaping maintained in the district (4.11 AC/51 AC). The following table shows the number of parcels, dwellings, acres and EDUs for each land use type that receive this benefit. City of Tustin 4-6 April 8, 2020 Landscape and Lighting District, FY2020-21 Engineer's Report 88 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-lBC7CB10383E Landscaped Parkway,Slope&Trail Benefit FY 2019-20 FY 2020-21 By Land Use Parcels Dwellings Acres EDU's Parcels Dwellings Acres EDU's Single Family Res. 2,626 2,626 2,626.000 2,626 2,626 2,626.000 Multi-family Res. 2,974 5,100 3,825.000 2,974 5,100 3,825.000 Non-Residential 19 0 32.624 195.744 19 0 32.624 195.744 Schools 10 0 48.573 291.438 10 0 48.573 291.438 Vacant 0 0 0.000 0.000 0 0 0.000 0.000 Parks 22 0 72.135 144.270 22 0 72.135 144.270 Golf Course 1 12 0 151.991 607.964 1 12 0 151.991 607.964 Total 1 5,663 7,726 305.323 7,690.416 1 5,663 7,726 305.323 7,690.416 BENEFIT AREAS There are three benefit areas within the District: Benefit Area A- parcels that receive only Arterial and Collector Street Light benefit. Benefit Area B - parcels that receive Arterial and Collector Street Light benefit and Parkway, Slope, and Trail Landscaping benefit. Benefit Area C - parcels that receive Arterial and Collector Street Light benefit, Parkway, Slope, and Trail Landscaping benefit, and Local Residential Lighting benefit. The following table provide a summary of parcels, dwellings, acres and EDU's by Benefit Area for the District. FY 2019-20 FY 2020-21 By Benefit Area Parcels Dwellings Acres EDU's Parcels Dwellings Acres EDU's A 42 -- 150.993 905.958 41 -- 151.863 * 911.178 B 5,294 7,357 305.323 7,321.416 5,294 7,357 305.323 7,321.416 C 1 369 369 0.000 369.0001 369 369 0.000 369.000 Total: 1 5,705 7,726 456.316 8,596.374 1 5,704 7,726 457.186 8,601.594 *assessor adjusted acreage due to parcel consolidations The Service Category Costs are based on the EDU's and rates for each Benefit Area. The Special Benefit Costs broken out by Benefit Area and Service Category is shown in the following table. City of Tustin 4-7 April 8, 2020 Landscape and Lighting District, FY2020-21 Engineer's Report 89 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-lBC7CB10383E Special Benefit Costs Breakdown FY 2019-20 FY 2020-21 Arterial& Local Parkway, Arterial& Local Parkway, Benefit Collector Residential Slope&Trail Collector Residential Slope&Trail Area Street Lights Lighting Landscaping Total Street Lights Lighting Landscaping Total A 1 $3,723 $3,723 $4,447 $4,447 B $30,091 $1,021,923 $1,052,014 $35,729 $1,098,139 $1,133,868 C $1,517 $7,081 $51,505 $60,103 $1,801 $8,085 $55,346 $65,232 Totals $35,331 $7,081 $1,073,428 $1,115,840 $41,977 $8,085 $1,153,485 $1,203,547 Note: FY 2020-21 totals may differ from the budgeted totals for each category due to rounding of the assessments. ASSESSMENT RATE SUMMARY The table below summarize the calculated service amounts per EDU for each Service Category in order to recover the full costs. Cost of FY 2020-21 Service Category Service EDU's Service Costs ACLT-Arterial&Collector Lighting $41,943 8601.594 $4.88 /EDU LRLT-Local Residential Lighting $8,086 369.000 $21.91 /EDU PSTL-Pkwy,Slope&Trail Landscape $1,153,469 7690.416 1 $149.99 /EDU The base assessment rate which may be levied for each Equivalent Dwelling Unit (EDU)may be increased by the annual change in CPI for all Urban Consumers for the Los Angeles, Anaheim, Riverside Area in any calendar year by City Council approval each year. The CPI change for Calendar Year 2019 (December 2018 to December 2019) is 3.0%. 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 2019-20 FY 2020-21 Actual Asmt Calculated Max.Asmt Rates Actual Asmt Total from Benefit Area Rates Service Costs (incl.CPI)* Rates Asmt Benefit Area A (ACLT) $4.11 /EDU $4.88/EDU $13.83 /EDU $4.88/EDU $4,447 Benefit Area B (ACLT+PSTL) $85.58/EDU $154.87 /EDU $88.15 /EDU $88.15/EDU $645,383 Benefit Area C (ACLT+PSTL+LRLT) $118.87/EDU $176.78/EDU $122.44/EDU $122.44/EDU $45,180 $695,010 *See"Maximum Assessment Rate Calculations"in the Appendix for details on the calculation of the Max.Assessment Rates City of Tustin 4-8 April 8, 2020 Landscape and Lighting District, FY2020-21 Engineer's Report 90 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-lBC7CB10383E For FY 2020-21, the cost of services for Benefit Areas B and C exceeds the amount generated at the current maximum allowable rate for these Benefit Areas. Therefore, an additional City contribution is required to cover the deficit for the PSTL service category. The table below shows the additional City contribution amounts required by Benefit Area. Additional City Special Benefit Total Assessment Contribution Cost for Service to be Collected Required Benefit Area A(ACLT) $4,447 $4,447 $0 Benefit Area B(ACLT+PSTL) $1,133,868 $645,383 ($488,485) Benefit Area C(ACLT+PSTL+LRLT)j $65,232 1 $45,180 1 ($20,052) $1,203,547 1 $695,010 ($508,537) The proposed assessment rates by land use category for each Benefit Area are shown below. ASSESSMENT RATE SUMMARY BY LAND USE FY 2019-20 FY 2020-21 BENEFIT AREA: A B C A B C ACLT+ ACLT+PSTL ACLT+ ACLT+PSTL LAND USE ACLT PSTL +LRLT ACLT PSTL +LRLT Single Family Res.($/Dwelling Unit) $85.58 /DU $118.87/DU $88.15/DU $122.44/DU Multi-family Res.($/Dwelling Unit) $64.19 /DU $66.11 /DU Non-Residential($/ac) $513.48 /ac $528.90/ac Non-Res-Tustin Market Place($/ac) $24.66/ac $29.28/ac Golf Course($/ac) $342.32 /ac $352.60/ac Vacant and Parks($/ac) $171.16/ac I 1 $176.30/ac City of Tustin 4-9 April 8, 2020 Landscape and Lighting District, FY2020-21 Engineer's Report 91 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-1BC7CB10383E 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 1997 per the provisions of Article XIIID of the California Constitution. DATED: April 8, 2020 Harris & Associates I?VLOFESS/ N0. C61383 � By: * * Alison Bouley, P.E. c1v« ��'�� ASSESSMENT ENGINEER 9 of C�-�Fe R.C.E. No. C61383 City of Tustin 4-10 April 8, 2020 Landscape and Lighting District, FY2020-21 Engineer's Report 92 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-1BC7CB10383E Section 5 Property Owner List The property owner list with the names and addresses of each property owner of each lot or parcel, as shown on the Assessment Diagram referenced in Part F herein, is the list of property owners within the District boundaries as shown on the last equalized roll of the Assessor of the County of Orange and is, by reference, made part of this report. City of Tustin 5-1 April 8, 2020 Landscape and Lighting District, FY2020-21 Engineer's Report 93 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-1BC7CB10383E Section 6 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 maps of the Assessor of the County of Orange, for the year when this Report was prepared, and are incorporated by reference herein and made part of this Report. City of Tustin April 8, 2020 Landscape and Lighting District, FY2020-21 Engineer's Report 94 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-1BC7CB10383E Appendix A: Budget Detail / Maximum Assessment Rate Calculations City of Tustin April 8, 2020 Landscape and Lighting District, FY2020-21 Engineer's Report 95 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-lBC7CB10383E BUDGET DETAIL FY 2020-21 DISTRICT ANALYSIS WORKSHEET District City's Estimate of Object No. Description Budget($) Costs($) Comments 6018 Architect/Eng Services 14,100 12,000 Annual Engineer's Report-Dist.Admin. 2,100 County charge of 0.3%for placement on property tax bills 6028 Landscape Maintenance 990,000 990,000 Contract-Maintenance&Rehab Projects 6132 Tree Trimming Contract 137,000 137,000 Contract-approx. 1,500 trees/yr 6220 Street Light Energy 65,000 57,000 Street lights-Arterial&Collector 8,000 Street lights-Local 6335 Electric 13,000 1 13,000 1 For irrigation equipment 6350 Water 100,000 100,000 IRWD service areas DISTRICT TOTAL 1,319,100 1,319,100 Maximum Assessment Rate Calculations by Consumer Price Index(CPI) increases FY 2020-21 CPI WORKSHEET Benefit Area A Benefit Area B Benefit Area C Max Actual Max Actual Max Actual Base Year CPI Rate($) Rate($) CPI Rate($) Rate($) CPI Rate($) Rate($) FY 1997-1998 7.91 7.91 50.38 50.38 69.96 69.96 FY 1998-1999 1.2% 8.00 7.87 1.2% 50.98 50.98 1.2% 70.80 70.27 FY 1999-2000 2.2% 8.181 8.04 2.2% 52.10 52.10 2.2% 72.36 71.82 FY 2000-2001 2.8% 8.41 8.04 2.8% 53.561 52.10 2.8% 74.39 71.82 FY 2001-2002 3.7% 8.72 8.40 3.7% 55.541 55.54 3.7% 77.14 76.38 FY 2002-2003 2.1% 8.90 8.90 2.1% 56.711 56.71 2.1% 78.76 78.76 FY 2003-2004 3.7% 9.23 9.23 3.7% 58.811 58.81 3.7% 81.67 81.67 FY 2004-2005 1.8% 9.401 9.40 1.8% 59.87 59.87 1.8% 83.14 83.14 FY 2005-2006 4.4% 9.81 9.81 4.4% 62.50 62.50 4.4% 86.80 86.80 FY 2006-2007 4.5% 10.25 10.25 4.5% 65.31 65.31 4.5% 90.71 90.71 FY 2007-2008 3.3% 10.59 9.79 3.3% 67.47 67.47 3.3% 93.70 93.70 FY 2008-2009 4.2% 11.03 10.82 4.2% 70.30 70.30 4.2% 97.64 97.18 FY 2009-2010 0.1% 11.04 11.04 0.1% 70.37 70.37 0.1% 97.74 97.74 FY 2010-2011 1.8% 11.24 11.24 1.8% 71.64 71.64 1.8% 99.50 99.50 FY 2011-2012 1.3% 11.39 11.39 1.3% 72.57 72.57 1.3% 100.79 100.79 FY 2012-2013 2.2% 11.64 8.29 2.2% 74.17 64.89 2.2% 103.01 103.01 FY 2013-2014 1.9% 11.86 8.29 1.9% 75.58 66.85 1.9% 104.97 104.97 FY 2014-2015 1.1% 11.99 8.29 1.1% 76.41 68.03 1.1% 106.12 106.12 FY 2015-2016 0.7% 12.07 8.52 0.7% 76.94 76.94 0.7% 106.86 106.86 FY 2016-2017 2.0% 12.31 8.92 2.0% 78.48 78.48 2.0% 109.00 109.00 FY 2017-2018 2.0% 12.56 9.34 2.0% 80.05 80.05 2.0% 111.18 111.18 FY 2018-2019 1 3.6% 13.011 9.34 3.6% 82.931 82.93 3.6% 115.18 115.18 FY 2019-2020 1 3.2% 13.431 4.11 3.2% 85.58 85.58 3.2% 118.87 118.87 FY 2020-2021 1 3.0% 1 13.831 4.88 3.0% 88.15 88.15 3.0% 122.44 122.44 City of Tustin April 8, 2020 Landscape and Lighting District, FY2020-21 Engineer's Report 96 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-1BC7CB10383E Appendix B: Cost & Assessment Comparison City of Tustin April 8, 2020 Landscape and Lighting District, FY2020-21 Engineer's Report 97 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-1BC7CB10383E FY 2020-21 Cost & Assessment FY 2020-21 COSTS, CONTRIBUTIONS &ASSESSMENTS Special Benefit General Benefit Additional City Total from Service Category Cost for Service Contribution Contribution Assessment Arterial and Collector Street Lighting $57,616 $15,673 $0 $41,976 Local Residential Lighting $8,086 $0 $0 $8,085 Parkway,Slope and Trail Landscaping $1,253,398 $99,929 $508,537 $644,949 $1,319,100 $115,602 $508,537 $695,010 FY 2019-20 Cost & Assessment (from previous year) FY 2019-20 COSTS, CONTRIBUTIONS &ASSESSMENTS Special Benefit General Benefit Additional City Total from Service Category Cost for Service Contribution Contribution Assessment Arterial and Collector Street Lighting $48,556 $13,198 $0 $35,331 Local Residential Lighting $7,081 $0 $0 $7,081 Parkway,Slope and Trail Landscaping1,166,363 $92,918 $441,687 $631,741 $ H$1,222,000 $106,116 $441,687 $674,153 Lighting and Landscape District Fund Balance Prosection Landscape and Lighting District Fund Balance Projection Beginning Fund Balance,7/01/2019 $0 per Mid Year Budget Projected Expenditures,FY 2019-20 $1,256,000 *per Mid Year Budget Projections Projected Revenues,FY 2019-20 $674,000 Projected annual Assessment District Revenues Projected Contribution to make budget whole $582,000 *Projected contribution from RAD 95-1 Construction Fund Projected Ending Fund Balance,6/30/2020 $0 *amounts provided by the City City of Tustin April 8, 2020 Landscape and Lighting District, FY2020-21 Engineer's Report 98 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-1BC7CB10383E Appendix C: Government Parcels City of Tustin April 8, 2020 Landscape and Lighting District, FY2020-21 Engineer's Report 99 DocuSign Envelope ID:1EEFDB96-4D07-45E7-B674-1BC7CB10383E CITY OF TUSTIN 04/07/20 LLMD-FY 2020-21 Page 1 GOVERNMENT PARCELS BENEFIT CURRENT FY 2020-21 FY 2019-20 APN AREA LANDUSE ACRES DU'S ASSESSMENT ASSESSMENT OWNER COMMENTS 10429026 B PRK 6.260 $1,103.64 $1,071.46 County Of Orange Peters Canyon Park 50020301 B PRK 4.251 $749.45 $727.60 City Of Tustin Camino Real Park 50022107 B PRK 3.600 $634.68 $616.17 City Of Tustin Heritage Park 50022110 B PRK 1.358 $239.41 $232.43 City Of Tustin Heritage Park 50023302 B PRK 3.008 $530.31 $514.85 City Of Tustin Laurel Glen Park 50029126 A C/I 1.562 $45.74 $38.52 City Of Tustin Gov Owned In FroII19,Open Car 50109501 B PRK 15.275 $2,692.98 $2,614.47 City Of Tustin Citrus Ranch Park 50109508 B PRK 1.260 $222.14 $215.66 City Of Tustin Citrus Ranch Park 50109509 B PRK 0.380 $67.00 $65.04 City Of Tustin Citrus Ranch Park 50111201 B SCH 5.810 $3,072.91 $2,983.31 School,Tustin Unified Tustin Ranch Elem.School 50111205 B PRK 1.800 $317.34 $308.09 City Of Tustin Tustin Sports Park 50111206 B PRK 1.660 $292.66 $284.13 City Of Tustin Tustin Sports Park 50111207 B PRK 0.240 $42.31 $41.08 City Of Tustin Tustin Sports Park 50111208 B PRK 14.230 $2,508.74 $2,435.61 City Of Tustin Tustin Sports Park 50111212 B PRK 0.463 $81.63 $79.25 City Of Tustin Tustin Sports Park 50111213 B SCH 1.297 $685.99 $665.98 School,Tustin Unified Tustin Ranch Elem.School 50111214 B PRK 1.210 $213.32 $207.11 City Of Tustin Tustin Sports Park 50111215 B SCH 0.790 $417.83 $405.65 School,Tustin Unified Tustin Ranch Elem.School 50111216 B PRK 0.450 $79.33 $77.02 City Of Tustin Tustin Sports Park 50111217 B SCH 2.080 $1,100.11 $1,068.04 School,Tustin Unified Tustin Ranch Elem.School 50128135 B SCH 9.901 $5,236.64 $5,083.97 School,Tustin Unified Ladera Elementary School 50245124 B SCH 3.110 $1,644.88 $1,596.92 Tustin Unified School Peters Canyon Elem.School 100 DocuSign Envelope ID:1EEFDB96-4D07-45E7-B674-1BC7CB10383E CITY OF TUSTIN 04/07/20 LLMD-FY 2020-21 Page 2 GOVERNMENT PARCELS BENEFIT CURRENT FY 2020-21 FY 2019-20 APN AREA LANDUSE ACRES DU'S ASSESSMENT ASSESSMENT OWNER COMMENTS 50245125 B PRK 2.070 $364.94 $354.31 City Of Tustin Cedar Grove Park 50245127 B PRK 2.230 $393.14 $381.69 City Of Tustin Cedar Grove Park 50245128 B SCH 5.070 $2,681.52 $2,603.35 Tustin Unified School Peters Canyon Elem.School 50245129 B SCH 1.080 $571.21 $554.56 Tustin Unified School Peters Canyon Elem.School 50245130 B PRK 1.530 $269.74 $261.88 City Of Tustin Cedar Grove Park 50245131 B PRK 3.880 $684.05 $664.10 City Of Tustin Cedar Grove Park 50245132 B SCH 1.100 $581.79 $564.83 Tustin Unified School Peters Canyon Elem.School 50245313 B C/I 1.250 $661.13 $641.86 City Of Tustin Fire Station 50252107 B SCH 18.335 $9,697.38 $9,414.65 School,Tustin Unified Pioneer Middle School 52502203 B PRK 2.980 $525.37 $510.06 City Of Tustin Pioneer Road Park 101 DocuSign Envelope ID: 1EEFDB96-4D07-45E7-B674-1BC7CB10383E Appendix D: District Maps Landscape Maintenance Facilities Map Assessment Diagram/Boundary Map Land Use Map City of Tustin April 8, 2020 Landscape and Lighting District, FY2020-21 Engineer's Report 102 DocuSign Envelope 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