HomeMy WebLinkAbout07 CONDUCT PUBLIC HEARING TO CONSIDER THE LEVYING OF ANNUAL ASSESSMENTS FOR THE TUSTIN LANDSCAPE ANDDocusign Envelope ID: F2C6D98E-7421-4E6C-BD1 2-E4099DOE1 17E
MEETING DATE
TO:
FROM:
SUBJECT:
SUMMARY:
Agenda Item 7.
Initial
AGENDA REPORT Reviewed: Q`Ei5
City Manager
Finance Director �1
JUNE 3, 2025
ALDO E. SCHINDLER, CITY MANAGER
MICHAEL GRISSO, DIRECTOR OF PUBLIC WORKS
CONDUCT PUBLIC HEARING TO CONSIDER THE LEVYING OF
ANNUAL ASSESSMENTS FOR THE TUSTIN LANDSCAPE AND
LIGHTING DISTRICT FOR FISCAL YEAR 2025-2026
The Tustin Landscape and Lighting District Engineer's Report was completed and
approved by the City Council at their May 6, 2025 meeting. At that meeting, the City Council
declared its intention to levy annual assessments and set a public hearing for June 3, 2025.
To levy the annual assessments, the City Council is required to conduct a public hearing
and, provided there is no majority protest, adopt Resolution No. 25-35 confirming the
annual assessments for Fiscal Year 2025-2026.
RECOMMENDATION:
Conduct a public hearing to receive testimony on the proposed levy of annual
assessments for the Tustin Landscape and Lighting District for Fiscal Year 2025-
2026; and
2. Adopt Resolution No. 25-35 confirming the annual assessments for Fiscal Year
2025-2026.
FISCAL IMPACT:
Landscape maintenance and public street lighting expenses within the Tustin Ranch area
are recovered through the levy of the annual assessments for the Tustin Landscape and
Lighting District and a General Benefit Contribution. The proposed Fiscal Year 2025-2026
budget is $931,800, with proposed assessments of $841,739, including City -paid
assessments totaling $14,110.85 for parkland and facilities, which will be paid through the
City's General Fund. The Engineer's Report calculates a General Benefit Contribution of
$90,061, which is also paid through the City's General Fund operating budget.
Docusign Envelope ID: F2C6D98E-7421-4E6C-BD1 2-E4099DOE1 17E
City Council Agenda Report
Public Hearing for Tustin Landscape and Lighting District
June 3, 2025
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 (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 into the District. The District currently consists of 5,704 parcels
encompassing 457.186 acres.
As a result of procedures required by the passage of Proposition 218 on the November
1996 Statewide ballot, which added Article MID to the State Constitution, the City re-
analyzed the District regarding the special benefits associated with the improvements for
each property in the District, commencing with Fiscal Year 1997-1998. Notices and ballots
to approve the assessment, including future adjustments based on increases in the
Consumer Price Index (CPI), were mailed in the spring of 1997 to all property owners in
the District. Subsequently, at the conclusion of a public hearing on July 7, 1997, the
majority of returned ballots, weighted by assessed amount, approved the annual
assessments.
Assessment Districts AD 85-1 and AD 86-2 were formed in 1986 and 1988, respectively,
and $132,050,000 in bonds were issued to fund the design and construction of public
improvements, including streets, traffic signals, drainage facilities, utility improvements, and
landscaping. Streets constructed within these Districts included, but were not limited to,
Jamboree Road, Tustin Ranch Road, Irvine Boulevard, Bryan Avenue, Portola Parkway,
and Pioneer Road.
On January 15, 1996, Reassessment District No. 95-1 (RAD 95-1) was formed by
Resolution No. 96-8, thereby consolidating AD 85-1 and AD 86-2 within the City of Tustin
into a single district and authorizing the issuance of bonds to exonerate the previous bonds.
Assessments levied under RAD 95-1 cover the same public infrastructure improvements
within the City of Tustin as the previous Assessment Districts.
On November 17, 2009, the City Council declared that construction of all required
improvements was complete and pursuant to Section 10427 of the California Streets and
Highways Code, the remaining funds in RAID 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. Annual deficits were a result of planned annual landscape
Docusign Envelope ID: F2C6D98E-7421-4E6C-BD1 2-E4099DOE1 17E
City Council Agenda Report
Public Hearing for Tustin Landscape and Lighting District
June 3, 2025
Page 3
enhancements in the District in excess of normal maintenance activities. There is no longer
sufficient funding in RAID 95-1 to offset annual deficits related to District landscape
enhancements.
In 2021, property owners were provided an opportunity to vote on increasing the annual
assessment to bring revenue in line with the cost to provide ongoing landscape
maintenance and enhancements in the Tustin Ranch community. There was not sufficient
property owner support to increase the assessment, and therefore, annual expenses have
been reduced according to the amended workplan approved by City Council on September
21, 2021. Service reductions include the following:
• Landscape maintenance has been reduced from monthly to every other month.
• All plant replacement eliminated (previously—$200,000 annually).
• Tree trimming extended from every other year to every three years.
• Limited tree planting.
• Irrigation was reduced and at times turned off.
Services to ensure public safety, such as street lighting and removal of dead trees, were not
reduced. Repairing irrigation leaks is prioritized to avoid unnecessary costs while maintaining
a sufficient watering schedule for shrubs and trees. Turf is generally susceptible to drought
and is noticeably dry as the weather warms each summer. On July 1, when new funds are
available, watering is increased to ensure the landscape survives the heat of late summer
and early fall.
Staff will soon be engaging with property owners to gauge the community's desired service
level and sentiment surrounding an increase in the assessment for Fiscal Year 2026-2027.
Based on information gathered, staff will create a proposed budget and engage a consultant
engineer to re -analyze the District. This will be followed by balloting of the District property
owners as a vote to increase assessments. Property owner support/opposition is based on
the weighted responses received. Those who choose not to participate have no impact on
the outcome.
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
consumer price index (CPI) for all urban consumers for the Los Angeles, Anaheim, and
Riverside area. The percentage increase in the CPI for calendar year 2024 was 3.4%. The
District's budget for Fiscal Year 2025-2026 has been increased per the maximum allowed by
Proposition 218 to offset anticipated increases in operating expenses.
Each year, the City estimates the cost to provide the street lighting and landscape
maintenance services within the District. Staff estimates the proposed FY 2025-2026 budget
to be $931,800, comprised of the following major components: arterial and collector street
lighting, local residential lighting, and parkway, slope, and trail landscaping.
Docusign Envelope ID: F2C6D98E-7421-4E6C-BD1 2-E4099DOE1 17E
City Council Agenda Report
Public Hearing for Tustin Landscape and Lighting District
June 3, 2025
Page 4
The resulting total costs to be assessed for lighting and landscape maintenance for Fiscal
Year 2025-2026 are $77,385 and $764,354, respectively, for a total operating and
maintenance assessment of $841,739. 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 2025-2026, which is unchanged
from last year.
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). Currently this only includes commercial property
along Jamboree Road
• 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)......................................................... Not Applicable
• Benefit Area "B" (ACLT + PSTL).............................................$106.97 per year
• Benefit Area "C" (ACLT +PSLT + LRLT)...................................$140.01 per year
The Engineer's Report prepared by Harris & Associates has been filed with the City Clerk
and contains the following proposed levy of assessments for Fiscal Year 2025-2026, along
with a comparable listing to last year's assessment.
Docusign Envelope ID: F2C6D98E-7421-4E6C-BD1 2-E4099DOE1 17E
City Council Agenda Report
Public Hearing for Tustin Landscape and Lighting District
June 3, 2025
Page 5
ASSESSMENT RATE SUMMARY BY LAND USE
FY 2024-25 (Current)
FY 2025-26 (Proposed)
BENEFIT AREA
A
B
C
A
B C
LAND USE
ACLT
ACLT +
ACLT+PSTL
ACLT
ACLT +
ACLT+PSTL
PSTL
+LRLT
PSTL
+LRLT
Single Family Res. ($/Dwelling Unit)
$103.54/DU
$131.08/DU
$106.97/DU
$140.01/DU
Multi -family Res. ($/Dwelling Unit)
$77.66/DU
$80.23/DU
Non -Residential ($/ac)
$621.24/ac
$641.824/ac
Non -Res - Tustin Market Place
$45.00/ac
$45.48/ac
($/ac)
Golf Course ($/ac)
$414.16/ac
$427.88/ac
Vacant and Parks ($/ac)
$207.08/ac
$213.94/ac
It is recommended that the City Council adopt Resolution No. 25-35, which will confirm the
levy of assessments for Fiscal Year 2025-2026 for the landscape maintenance and public
street lighting expenses within the Tustin Ranch area.
Michael Grisso
Director of Public Works
Attachments:
1. Resolution No. 25-35
2. Assessment Diagrams (3)
Docusign Envelope ID: F2C6D98E-7421-4E6C-BD1 2-E4099DOE1 17E
ATTACHMENT 1
Resolution No. 25-35
Docusign Envelope ID: F2C6D98E-7421-4E6C-BD1 2-E4099DOE1 17E
RESOLUTION NO. 25-35
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA
CONFIRMING THE LEVY OF ANNUAL ASSESSMENTS FOR THE LANDSCAPE
MAINTENANCE AND PUBLIC STREET LIGHTING EXPENSES IN THE TUSTIN RANCH
AREA WITHIN THE BOUNDARIES OF THE TUSTIN LANDSCAPE AND LIGHTING
DISTRICT FOR FISCAL YEAR 2025-2026
WHEREAS, the City Council of the City of Tustin, California (hereinafter referred to as the
"City Council"), has adopted Resolution No. 25-08 initiating proceedings for the annual levy of
assessments for the payment of the expenses of providing and servicing public landscaping and
public street lighting in the Tustin Ranch area within the boundaries of the Tustin Landscape and
Lighting District; and
WHEREAS, the Engineer has prepared and filed the report entitled "Engineer's Report for
Tustin Landscape and Lighting District, Fiscal Year 2025-2026" with the City Clerk (the "Report")
containing the matters specified in Section 22565 of Part 2 of Division 15 of the Streets and Highways
Code of California as amended, the "Code", and Proposition 218; and
WHEREAS, the City Council has approved the Report as filed on the 61h day of May 2025,
with the passage and adoption of Resolution No. 25-33; and
WHEREAS, the City Council heretofore by Resolution of Intention No. 25-34 passed and
adopted on the 6th day of May 2025, declared its intention to provide for an annual levy of assessment
for improvement, maintenance and servicing of public landscaping and street lighting facilities within
the boundaries of the territory included within the Tustin Landscape and Lighting District; as more
fully described in said Resolution of Intention; and
WHEREAS, the City Council, by said Resolution of Intention No. 25-34, fixed Tuesday,
June 3, 2025, at 6:00 p.m. before the City Council at the City Council Chamber, 300 Centennial Way,
Tustin, California, as the time and place for a hearing on levying the proposed assessments, and
provided for the notice of said hearing; and
WHEREAS, the City Clerk has filed with the City Council an affidavit setting forth the time
and manner of compliance with the requirements for posting and publishing set forth in Sections
22552, 22553 and 22554, of the Code and in accordance with Proposition 218, and the City Council
hereby finds the Resolution has been posted in the time, form and manner required by law; and
WHEREAS, the hearing was duly opened and held by the City Council at the time and
place for the hearing; and
WHEREAS; all verbal protests or objections made by property owners at the hearing
conducted on June 3, 2025, were formally received and reflected in the City Council minutes of said
meeting; and
WHEREAS, the City Council received all written property owner protests submitted prior
to the conclusion of the hearing; and
Resolution 25-35
Page 1 of 3
Docusign Envelope ID: F2C6D98E-7421-4E6C-BD1 2-E4099DOE1 17E
WHEREAS, said City Council proceeded to hear and pass upon any protests, made at the
hearing, and on motions duly made and seconded, granted in whole or in part or, overruled each
and all of said protests and objections, as hereinafter set forth; and
WHEREAS, the public interest and convenience require the maintenance, servicing and
operation of those certain public landscaping and lighting facilities within the assessment district; and
WHEREAS, all the assessed territory within said assessment district would be specially
benefited by the maintenance of improvements described in the Resolution of Intention.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tustin that it
determines and orders as follows:
Section 1: The foregoing recitals are true and correct, and the City Council so finds and determines.
All said protests and objections are hereby overruled by the affirmative vote of the members of the
City Council voting in favor of the adoption of this resolution.
Section 2: The improvements consisting of the maintenance, servicing, and operation of public
landscaping and street lighting in the assessment district, as set forth in the Report, a copy of which
is on file in the office of the City Clerk, are ordered to be undertaken.
Section 3: The Annual Assessments for Fiscal Year 2025-2026, as set forth in the Report, copies of
which are on file in the office of the City Clerk, are hereby confirmed.
Section 4: Passage of this Resolution shall constitute a levy of an assessment for the fiscal year
referred to in the assessment confirmed herein.
Section 5: Pursuant to law, including Article 1 of Chapter 4 of Part 2 of Division 5 of the Code, the
City Clerk shall file a certified copy of this Resolution and the diagram and the assessment confirmed
by the resolution or a certified copy therefore, with the County Auditor of the County of Orange.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin
held on the 3rd day of June 2025.
AUSTIN LUMBARD,
Mayor
ATTEST:
ERICA N. YASUDA,
City Clerk
Resolution 25-35
Page 2 of 3
Docusign Envelope ID: F2C6D98E-7421-4E6C-BD12-E4099DOE117E
APPROVED AS TO FORM:
FDocuSigned by:
,: y -
DA F'WENDIG,
City Attorney
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. 25-35 was duly and regularly passed and adopted at a
regular meeting of the City Council held on the 3rd day of June, 2025 by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
COUNCILMEMBER RECUSED:
ERICA N. YASUDA,
City Clerk
Resolution 25-35
Page 3 of 3
Docusign Envelope ID: F2C6D98E-7421-4E6C-BD1 2-E4099DOE1 17E
ATTACHMENT 2
Assessment Diagrams (3)
Docusign Envelope ID: F2C6D98E-7421-4E6C-BD12-E4099DOE117E
REDUCED SCALE
CITY OF TUSTIN
LANDSCAPE AND LIGHTING DISTRICT
ASSESSMENT DIAGRAM
FOR THE
2025-26 FISCAL YEAR
LANDSCAPE MAINTENANCE FACILITIES MAP
LEGEND
LANDSCAPE MAINTENANCE
SLOPE MAINTENANCE
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Docusign Envelope ID: F2C6D98E-7421-4E6C-BD12-E4099DOE117E
CrTY OF TUSTIN
LANDSCAPE AND LIGHTING DISTRICT
ASSESSMENT DIAGRAM
FOR THE
2025-26 FISCAL YEAR
ASSESSMENT DIAGRAM/BOUNDARY MAP
LEGEND
BENEFIT AREA A
BENEFIT AREA B
BENEFIT AREA C
CITY BOUNDARY
TRACT No. 154174. 500-341-37 THRU 52 (16
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REDUCED SCALE
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Docusign Envelope ID: F2C6D98E-7421-4E6C-BD12-E4099DOE117E
REDUCED SCALE
CITY OF TUSTIN
LANDSCAPE AND LIGHTING DISTRICT
ASSESSMENT DIAGRAM
FOR THE
2025-26 FISCAL YEAR
LAND USE MAP
LEGEND
Residential
Commercial
Vacant
Parks
Government
Golf Course
City Boundary
WAC1 No. 15474. 500-341-37 THRU 52 (16
TRACE Ho. 15475. 500-341-01 THRU 21 (21
7RAC1 N.
15427: 500-341-M THRU 74 (26
500-211-M 13
ir
101 Progress, Suite 250 — Irvine, CA 92618
PHONE: (949) 655-3900 FAX: (866) 788-0180
525-051-01 7HR, 40, 73 THRU 98
525-061-01 MW 06, 63 MW 88
525-061-13 THRU 41
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502-501-01 THRU 47
502-471-34 THRU 56
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502-471-57 THRU 69
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502-461-54 THRU 69
502-46"1 THRU 21
0S0
THRU 619
THRU 824
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