HomeMy WebLinkAbout08 TUSTIN LANDSCAPE ANG LIGHTING DISTRICTDocuSign Envelope ID: 95B688E9-C404-4AF4-AB82-F6ECBC9ACEB7
Agenda Item 8
AGENDA REPORT Reviewed. Ds
City Manager
Finance Director
MEETING DATE: APRIL 6, 2021
TO: MATTHEW S. WEST, CITY MANAGER
FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER
SUBJECT: ADOPT RESOLUTIONS ORDERING THE PREPARATION OF THE
ENGINEER'S REPORT FOR THE TUSTIN LANDSCAPE AND LIGHTING
REASSESSMENT DISTRICT 2021 AND THE ENGINEER'S REPORT FOR THE
TUSTIN LANDSCAPE AND LIGHTING DISTRICT LEVY OF
ANNUAL ASSESSMENTS FOR FISCAL YEAR 2021-2022
SUMMARY
The Tustin Landscape and Lighting District provides funding for the maintenance of perimeter
landscaping on the arterial streets and for the operation and maintenance of street lighting on public
roads within the Tustin Ranch area. Resolution No. 21-23 orders the preparation of the Engineer's
Report for the Tustin Landscape and Lighting Reassessment District 2021 (Reassessment District
2021) for Fiscal Year 2021-2022. This will be followed by sending a ballot to the owner of record of
each parcel within the boundaries of the Reassessment District 2021 to vote their support for
forming a new Reassessment District or maintaining the levy within the District as it currently
exists.
If there is insufficient support for the formation of the Reassessment District 2021, an engineering
analysis will be required to identify property benefits and to levy assessments in the existing District.
Resolution No. 21-24 orders the preparation of the Engineer's Report for the Tustin Landscape and
Lighting District Levy of Annual Assessments for Fiscal Year 2021-2022.
RECOMMENDATION
It is recommended that the City Council:
Adopt Resolution No. 21-23 ordering the preparation of the Engineer's Report for the Tustin
Landscape and Lighting Reassessment District 2021 Levy of Annual Assessments for Fiscal
Year 2021-2022; and
2. Adopt Resolution No. 21-24 ordering the preparation of the Engineer's Report for the Tustin
Landscape and Lighting District Levy of Annual Assessments for Fiscal Year 2021-2022.
FISCAL IMPACT
Sufficient funds are budgeted and appropriated in the Tustin Landscape and Lighting District Fund
to cover this work. Additionally, the costs for operating and maintaining the District are offset
through the levy of the annual assessments for the District.
DocuSign Envelope ID: 95B688E9-C404-4AF4-AB82-F6ECBC9ACEB7
Order Preparation of Engineer's Report for the Tustin Landscape and Lighting District
April 6, 2021
Page 2
CORRELATION TO THE STRATEGIC PLAN
Assessments collected through the Tustin Landscape and Lighting District contribute to the
fulfillment of the City's Strategic Plan Goal B: Protection of City Assets by ensuring Tustin is an
attractive, safe, and well-maintained community in which people feel pride.
BACKGROUND AND DISCUSSION
The Tustin Landscape and Lighting District provides funding for the maintenance of perimeter
landscaping on the arterial streets and for the operation and maintenance of street lighting on public
roads within the Tustin Ranch area. As it currently exists, the maintenance expenses for the District
exceed the revenue generated from assessments. Staff has been using surplus bond proceeds
from the original construction of the Tustin Ranch area to supplement the assessment revenue
since Fiscal Year 2009-2010. The surplus bond proceeds are nearly exhausted. A copy of the May
5, 2020 Council Agenda item approving the Engineer's Report for Tustin Landscaping and Lighting
District for Fiscal Year 2020-2021 is attached for reference.
The attached resolutions begin two processes for updating the assessments for the Tustin
Landscape and Lighting District. Resolution No. 21-23 begins the process to update the
assessment methodology, analyze property related benefits and update assessments to be levied
beginning FY 2021-2022. This process creates a new Tustin Landscape and Lighting
Reassessment District 2021 that will be presented to the owner of record for each parcel in the
District boundaries for consideration through balloting and a Public Hearing that is scheduled for
June 15, 2021. Ballots are required to be sent to every owner of record no less than forty-five (45)
days prior to the Public Hearing. If a majority of the submitted ballots support the formation of the
Reassessment District 2021, the City Council may elect to establish the Tustin Landscape and
Lighting Reassessment District 2021 and levy the new assessments, which would be done through
the adoption of a Resolution. This resolution will be considered for City Council action after the
Public Hearing and tabulation of ballots.
Resolution No. 21-24 begins the process for updating the District, as it occurs every year. Should
the Reassessment District 2021 fail to gain enough support from property owners, this Engineer's
Report simply updates the existing District by evaluating parcel data, maintenance expenses, and
property benefits. Generally speaking, the assessments are updated by the Consumer Price Index
for the 12 -month period ending December 31, 2020.
Next Steps
The future City Council Resolutions required to complete the assessment processes include:
April 20; 2021
Adoption of Resolutions approving each of the Engineer's Reports.
Adoption of Resolutions declaring the City Council's intention to provide an annual levy
of assessments as determined in each of the Engineer's Reports.
Adoption of a Resolution setting the date for a Public Hearing on June 15, 2020.
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Eng Rpt for TOLD 21-22.docx
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Order Preparation of Engineer's Report for the Tustin Landscape and Lighting District
April 6, 2021
Page 3
June 20, 2021
Two Resolutions will be presented to the City Council for consideration. The first would
confirm the levy of annual assessments per the Engineer's Report for the Tustin
Landscape and Lighting Reassessment District 2021. This Resolution would only be
adopted if a majority of the ballots collected through the end of the Public Hearing and
tabulated immediately following the Public Hearing support the Reassessment District
2021. If a majority of the ballots do not support the Reassessment District 2021, a
second Resolution will be presented to the City Council for the levy of assessments
presented in the Engineer's Report for the existing District.
A copy of the Landscape and Lighting District Assessment Diagram is attached for reference.
'Stack, P.E.
Public Works/City Engineer
Attachment(s):
1. Resolution No. 21-23 — Order Preparation of the Engineer's Report for the Tustin Landscape and
Lighting Reassessment District 2021
Resolution No. 21-24 — Order Preparation of the Engineer's Report for the Tustin Landscape and
Lighting District Levy of Annual Assessments for FY 2021-2022
3. Landscape and Lighting District Assessment Diagram
4. May 5, 2020 Agenda Report
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Eng Rpt for TL&LD 21-22.docx
DocuSign Envelope ID: 95B688E9-C404-4AF4-AB82-F6ECBC9ACEB7
ATTACHMENT 1
Resolution No. 21-23
DocuSign Envelope ID: 95B688E9-C404-4AF4-AB82-F6ECBC9ACEB7
RESOLUTION NO. 21-23
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA
INITIATING PROCEEDINGS FOR THE FORMATION OF THE TUSTIN LANDSCAPE
AND LIGHTING REASSESSMENT DISTRICT 2021
WHEREAS, the City Council of the City of Tustin, pursuant to the provisions of the
Landscaping and Lighting Act of 1972, Division 15, Part 2 of the California Streets and
Highways Code (Act), desires to initiate proceedings for the formation of the Tustin Landscape
and Lighting Reassessment District 2021 (District), and to levy and collect annual assessments
for the District commencing in Fiscal Year 2021-2022 to pay for the operations, maintenance,
and servicing of landscaping and lighting improvements, and appurtenant facilities related
thereto; and
WHEREAS, pursuant to Chapter 2, Article 1 Section 22585 of the Act, proceedings for
the formation of an assessment district shall be initiated by resolution and that resolution shall
generally describe the proposed improvements, describe the proposed assessment district, and
specify a distinctive designation for the district and order the engineer to prepare and file a
report in accordance with Article 4 (commencing with Section 22565) of Chapter 1 of the Act;
and
WHEREAS, the City has retained Harris & Associates for the purpose of assisting with
the formation of the District, the establishment of annual assessments, and to prepare and file
an Engineer's Report (Report) with the City Clerk concerning the formation of the Tustin
Landscape and Lighting Reassessment District 2021 and the proposed annual levy of
assessments in accordance with the Act and the provisions of the California Constitution Article
XIIID (Constitution).
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tustin does
hereby resolve, determine and order as follows:
SECTION 1. That the forgoing recitals are true and correct.
SECTION 2. That the City proposes to form the Tustin Landscape and Lighting
Reassessment District 2021, and to levy and collect annual assessment for the District
commencing in Fiscal Year 2021-2022 to pay for the operation, maintenance, and servicing of
local landscaping and lighting improvements, and appurtenant facilities related thereto; and
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 the boundaries of the City 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 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:
DocuSign Envelope ID: 95B688E9-C404-4AF4-AB82-F6ECBC9ACEB7
■ Landscaping and Appurtenant Facilities
Landscaping, planting, shrubbery, trees, irrigation systems, hardscapes, fixtures,
and appurtenant facilities, in public street and sidewalk rights-of-way, including
parkways and dedicated easements within the boundary of said 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 for
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 the 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 Harris & Associates is designated by this City Council as the
Engineer of Work for the formation of the Tustin Landscape and Lighting Reassessment District
2021, and is hereby directed to prepare and file with the City an Engineer's Report concerning
the formation of the District and the annual levy of assessments in accordance with the
requirements of Chapter 1, Article 4 of the Act; and
SECTION 6. The City Clerk of the City of Tustin shall certify to the passage and
adoption of this Resolution and its approval by the City Council and shall cause the same to be
listed in the records of the City.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin
held on the 6t" day of April, 2021.
LETITIA CLARK,
Mayor
ATTEST:
ERICA N. YASUDA,
City Clerk
DocuSign Envelope ID: 95B688E9-C404-4AF4-AB82-F6ECBC9ACEB7
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. 21-23 was duly and regularly passed and adopted
at a regular meeting of the City Council held on the 6t" day of April, 2021 by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
ERICA N. YASUDA,
City Clerk
DocuSign Envelope ID: 95B688E9-C404-4AF4-AB82-F6ECBC9ACEB7
ATTACHMENT 2
Resolution No. 21-24
DocuSign Envelope ID: 95B688E9-C404-4AF4-AB82-F6ECBC9ACEB7
RESOLUTION NO. 21-24
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA
ORDERING THE PREPARATION OF AN ENGINEER'S REPORT FOR THE TUSTIN
LANDSCAPE AND LIGHTING DISTRICT LEVY OF ANNUAL ASSESSMENTS FOR
FISCAL YEAR 2021-2022
WHEREAS, it is the intention of the City Council of the City of Tustin to levy annual
assessments for the 2021-2022 Fiscal Year for the Tustin Landscape and Lighting District; and
WHEREAS, changes in existing improvements including new subdivided parcels, new
landscaped areas and new street light facilities to be maintained by said District may have
occurred; and
WHEREAS, Harris and Associates is under contract to provide professional engineering
services in connection with said District under the direction of the Director of Public Works/City
Engineer.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tustin that the
Director of Public Works/City Engineer is hereby ordered to prepare and file, through Harris and
Associates, the Engineer's Report for the Tustin Landscape and Lighting District Levy of Annual
Assessments for Fiscal Year 2021-2022.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin
held on the 6t" day of April, 2021.
LETITIA CLARK,
Mayor
ATTEST:
ERICA N. YASUDA,
City Clerk
DocuSign Envelope ID: 95B688E9-C404-4AF4-AB82-F6ECBC9ACEB7
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. 21-24 was duly and regularly passed and adopted
at a regular meeting of the City Council held on the 6t" day of April, 2021 by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
ERICA N. YASUDA,
City Clerk
DocuSign Envelope ID: 95B688E9-C404-4AF4-AB82-F6ECBC9ACEB7
ATTACHMENT 3
Landscape and Lighting District
Assessment Diagram
DocuSign Envelope ID: 95B688E9-C404-4AF4-AB82-F6ECBC9ACEB7
CffY OF TUSi1N
LANDSCAPE AND LIGHTING DISTRICT
ASSESSMENT DIAGRAM
FOR THE
2020-21 FISCAL YEAR
ASSESSMENT DIAGRAM/BOUNDARY MAP
LEGEND
BENEFIT AREA A
BENEFIT AREA B
BENEFIT AREA C
CITY BOUNDARY — - -
Harns & Associates=.
22 Executive Park, Suite 200 - Irvine, CA 92614
PHONE: (949) 655-3900 FAX: (949) 655-3995
R\ivafn\jY 10.11\&p,miv\Amit MM -11 EwMayt 4/l/—
DocuSign Envelope ID: 95B688E9-C404-4AF4-AB82-F6ECBC9ACEB7
ATTACHMENT 4
May 5, 2020 Agenda Report
DocuSign Envelope ID: 95B688E9-C404-4AF4-AB82-F6ECBC9ACEB7
• Agenda Item 4
AGENDA REPORT Reviewed:
City Manager ^^ 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.
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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.
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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)................................. $122.44 per year
The Engineer's Report prepared by Harris & Associates has been filed with the City Clerk and
contains the following proposed levy of assessments for Fiscal Year 2020-2021 along with a
comparable listing to last year's assessment.
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A;
BENEFITAREA
LAND USE
Single Family Res. ($/Dwelling Unit)
Multi -family Res. ($/Dwelling Unit)
Non -Residential ($/ac)
Non -Res - Tustin Market Place ($/ac)
Golf Course ($/ac)
Vacant and Parks ($/ac)
Tustin Landscape and Lighting District
May 5, 2020
Page 4
SESSMENT RATE SUMMARY BY LAND USE
FY 2019-20
A B
ACLT ACLT +
PSTL
$85.58/DU
$64.19/D U
$513.48/ac
$24.66/ac
$342.32/ac
$171.16/ac
FY 2020-21
C A B C
ACLT+PSTL ACLT ACLT+ ACLT+PSTL+
+LRLT PSTL LRLT
$118.87/DU $88.15/DU $122.44/DU
$66.11 /DU
$528.90/ac
$29.28/ac
$352.60/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.
Stack, P.E.
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
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21.docx
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