13C - COUNCIL CMT RPT - DEV AND TRANS MINUTES

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When the petitions are accepted by the city, the City Council will need to approve a study, including an engineer's report. Other council actions will need to be taken, including a full financial disclosure, before a ballot is prepared for the assessment district, due to a financial commitment that will need to be made by the city. Jason Gabriel provided background on the proposed project, stating that a group of industrial business owners, led by Ms. Gail Fosler, approached the city in 2011 concerning the concept of repairing the asphalt industrial streets in the area of WIC. There is currently no dedicated City funding for industrial streets. The affected region is 3.2 miles of local industrial streets in two areas; the streets at issue have been field- inspected by staff and found to be in need of repairs; there are approximately 26.9 miles of industrial streets in need of rehabilitation which would cost almost $63 million; this area in the WIC constitutes approximately 12% of the overall need in the city. A map of the affected area was shown. Area 1 is in the vicinity of Warner /Santa Ana River /Centennial Regional Park /OC Flood Channel. Area 2 is in the area of Segerstrom /Susan/Warner /OC Flood Control Channel. Mr. Gabriel noted that special assessment districts are governed by Proposition 218; properties that benefit would pay; require 60% of landowners to petition; a notice and public hearing are required; the process may be stopped by a majority protest. A process flow chart was provided. Total fees and costs are estimated at approximately $5 million, with the city contributing approximately 50 %. Assessment costs of approximately $13 million would be added to the property owner's portion, based on an assumed 6% interest and a 20 -year total life of the district. Chairman Sarmiento stated that the WIC assessment district is a good idea and may be a model for other industrial areas that need improvement; that it appears to be a more feasible and accelerated way of addressing inevitable improvements. Vice Chair Martinez recommended direct communication with the Finance Director and staff with regard to bonding and financing of the potential assessment district, so that payment alternatives are explored and presented to the City Council to ensure the best financial options for the city. Committee Member Benavides noted that some property owners in the vicinity of Coastal Communities Hospital are interested in making improvements to that area and inquired about the process taken by the WIC property owners. 3. STATUS OF REGIONAL SUPPORT AND STREETCAR POLICY — EVAN BROOKS ASSOCIATES AND OCTA Chairman Sarmiento stated for the record his disappointment that OCTA has not appeared at Committee meetings and Study Sessions /Council meetings. Noted that the fixed guideway project is intended to be a cooperative effort with cities Development ii, Transp. Council Committee Minutes 136-10 January 9, 2014