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Resolution of Intention to Establish <br />Management District in the Downtown <br />October 6, 2008 <br />Page 2 <br />The City of Santa Ana's recently adopted CMD ordinance lays out the <br />processes for the establishment of this unique benefit assessment <br />district. It is patterned after the PBID statute, but offers greater <br />local authority and flexibility. The CMD ordinance varies from the PBID <br />statute in two noteworthy ways: first, the pre-formation petitioning <br />requirement is set at 30 percent of the district value while State law <br />requires 50 percent; second, the maximum life span for a district <br />permitted by this ordinance is ten years while the State law has a limit <br />of five years when it is first formed, and then allows ten-year terms <br />for subsequent renewals. <br />In January 2008, a Management District Formation Committee was created <br />to investigate and pursue the development of a CMD. This ten-member <br />committee is comprised of key Downtown stakeholders and has worked with <br />the Interim Downtown Manager/Consultant to define a workable district <br />and develop a comprehensive management plan. <br />The Committee has determined the District's boundaries, created the <br />Management District Plan, and initiated outreach efforts with their <br />fellow property owners. <br />The procedural steps to form a CMD are: <br />• Gather and submit to the City petitions signed by property owners who <br />will contribute more than 30 percent of the total assessment. <br />• The City Council adopts a Resolution of Intention to establish a CMD. <br />• The City Council conducts a public hearing and a ballot procedure for <br />all property owners within the CMD in accordance with the provisions <br />of Section 53753 of the Government Code and Article XIIID, Section 4 <br />of the California Constitution. In order for the district to be <br />formed, of the CMD ballots returned, a weighted majority must be in <br />favor of the district formation. CMD ballots are weighted based upon <br />the dollars to be paid into the district. <br />• At the conclusion of the public hearing, if there is no majority <br />protest of the establishment of the district, as determined by a <br />weighted majority of the ballots returned, the City Council may adopt <br />a Resolution of Formation of the CMD and levy the assessment. <br />55B-2 <br />