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<br />district and the eventual repayment to the City. The City can make a one-
<br />time investment in the district to create a revolving loan fund in which funds
<br />are reused as they are repaid. The City may also make investments on
<br />an as- needed and as- available basis and collect repayments each year as
<br />assessments are paid to the district. The special fund used to account for the
<br />contractual assessment district may be a stand -alone fund or may be part of a
<br />single special fund for the Specific Plan, in which case it would include parking
<br />meter fees and park in -lieu fees.
<br />The City may, at any time, choose to construct and install roadway
<br />improvements and streetscam improvements in any part of the Specific Plan
<br />area. Absent contrary provisions in the ordinance establishing the contractual
<br />assessment district or in any agreements, City construction and installation of
<br />improvements would not terminate or invalidate any then existing contractual
<br />assessment agreements.
<br />The City may establish a contractual assessment district within six months of
<br />the completion of Tasks 3 and 6. The City may also include a sunset provision.
<br />Task 8. Speed Study
<br />Once the restriping and final travel lane configurations are in place (see Task
<br />4), the City will conduct a speed study to determine the appropriate travel
<br />speed limit along Harbor Boulevard. The City will pay for the speed Study and
<br />any resultant change in speed limits using City revenues. The speed study will
<br />be completed within one year of restriping the lane confguradons.
<br />The goal is to design Harbor Boulevard within the Specific Plan to satisfy the
<br />California Vehicle Code requirements and justify a lower speed limit due to the
<br />proposed increase in residential development and pedestrian activity.
<br />Task 9. Annual Review
<br />Each year in conjunction with the annual budget process, the Planning and
<br />Building Agency (PBA) will report on the implementation of the Specific Plan.
<br />Among other considerations, the annual review will evaluate the effectiveness
<br />of the public realm improvement program. Specifically, the report will indicate
<br />whether the primary reliance on new development and contractual assessment
<br />districts supplementetl by target City investments is adequately and effectively
<br />achieving the Specific Plan's vision.
<br />If the PBA finds that sufficient progress is not being made, the PBA may
<br />recommend changes to the implementation program. Such changes may
<br />include the City taking a more direct role in paying for roadway and streetscape
<br />improvements and alternative approaches to recouping those costs. Funding
<br />far those improvements could be included in the City's capital improvement
<br />program.
<br />Such changes may also include recommendations to engage property owners
<br />in evaluating the feasibility of assessment districts, landscaping and lighting
<br />maintenance districts, and other applicable funding and financing districts.
<br />Any such changes to the implementation program may be approved by a
<br />simple majority vote of the City Council.
<br />The PBA may recommend and a simple majority vote of the City Council
<br />may approve the termination of the annual review process upon a finding by
<br />the PBA that 60 percent or more of the Harbor Boulevard frontage has been
<br />improved pursuant 0 the ultimate roadway design and specifications and the
<br />streetscape plan.
<br />Table 7.1. Public Realm Improvement Implementation
<br />Timetable
<br />Task 1, Adopt Interim Development Agreement Polity
<br />Task 2. Prepare Development Impact Fee Nexus Studies
<br />and A" Impact Fee ordinance
<br />Task 3. Prepare Ultimate Roatlway Design and
<br />Specifications
<br />Task 4, Remnpe Raadways for Initial Lane Configurations
<br />Task 5. Establish the Parking Meter District and Fund
<br />Task 6. Create a Streetscaps Plan
<br />Task 7. Establish a contractual Assessment District
<br />Task 8. speed study
<br />i
<br />Task 9. Annual Remay
<br />Noe: This fimeeNe presents the current scheduling goats for Me Gty, but Me tasty and
<br />timelines amsubiect to change.
<br />CHAPTER 7: Administration and Implementation
<br />Implementation Tools and Funding Mechanisms
<br />The public realm improvement program described above provides for the use
<br />of a variety of implementation tools and funding and financing mechanisms.
<br />The following describes the general use and statutory requirements for these
<br />tools and mechanisms and for other tools that the City may employ at a future
<br />data to realize the vision for the Harbor Corridor Plan.
<br />Developer- Funded Improvements
<br />In some cases, the development of one or more parcels in the Specific Plan
<br />area may require the construction of offsite infrastructure improvements, the
<br />size of which may be larger than what is needed to serve just the proposed
<br />development. In such rases, if the City does not have the funds available to
<br />pay for the additional infrastructure rapacity, the property owner or developer
<br />may agree, through a development agreement, to pay for the full cost of the
<br />offsite infrastructure improvement and to be repaid as additional development
<br />occurs.
<br />The development agreement would stipulate the terms of such repayment. If
<br />the cost of infrastructure improvements is to be repaid to a property owner,
<br />developer, or other entity, that paid the upfront cost, the City may prohibit other
<br />development under the Specific Plan until the project applicant has paid the
<br />required infrastructure cost repayment fee in accordance with the terms of the
<br />development agreement.
<br />Development Impact Fees
<br />A development impact fee is charged by a city to the applicant in connection
<br />with approval of a development project for the purpose of defraying all or a
<br />portion of the cost of public facilities related to the development project. The
<br />Specific Plan anticipates the use of development impact fees for right -of -way,
<br />sewer, drainage and flood control, and public park improvements.
<br />The use of development impact fees is authorized by the Mitigation Fee Act
<br />(California Government Code, Section 66000, at seq.). The City may not
<br />require a proposed development to pay a development impact fee beyond the
<br />proposed development's proportionate share of the public improvement cost.
<br />Contractual Assessment Districts
<br />In a typical assessment district, a municipality determines the cost of public
<br />improvements and paces a levy on each property in the area unless a majority
<br />of property owners object. In contrast, a contractual assessment district is
<br />completely voluntary.
<br />A municipality establishes a contractual assessment district program, creating
<br />guidelines that identify the types of improvements, costs, and locations. If and
<br />when a property owner wants to participate, the owner can voluntarily enter
<br />into a contractual assessment. Because the program is completely voluntary
<br />and because it applies to only one property at a time, there is no voting,
<br />balloting, or engineer's report, as is required with a convenfional assessment
<br />district. Typically the program authorizes the city manager or some other staff
<br />position to execute the contract on behalf of the city, thus eliminating the need
<br />for a public hearing.
<br />These assessments are authorized by Contractual Assessments (part of the
<br />Improvement Ad of 1911) (Streets and Highways Code Sections 5898.10
<br />et seq.). Although this authority has existed for 100 years, this code section
<br />became better known with the passage of AB 811 (2008, Levine), which
<br />amended the code to allow contractual assessments to pay for energy
<br />efficiency and renewable energy improvements, most commonly for residential
<br />solar energy retrofits. Santa Ana has already use contractual assessment in the
<br />HERO program for energy efficiency improvements.
<br />To establish a contractual assesvnent district, the City Council would first adopt
<br />a resolution indicating its intention to do so. The resolution of intention should:
<br />Include a statement that the City proposes to make voluntary
<br />contractual assessment financing available to property owners
<br />u Identity the kinds of public works that may be financed
<br />> Describe the boundaries of the area within which voluntary contractual
<br />assessment may be entered into
<br />r Briefly describe the proposed arrangements for financing the
<br />program, including a brief description of criteria for determining the
<br />creditworthiness of a property owner
<br />Prior to the public hearing to adopt a resolution, which establishes the
<br />contactual assessment tlistrict, the City would have to prepare a report
<br />containing:
<br />• A map showing the boundaries of the territory within which voluntary
<br />contractual assessments are proposed to be offered
<br />• A draft contract specifying the terms and conditions that would
<br />be agreed to by a property owner within the voluntary contractual
<br />assessment area and the City
<br />October 2014 7 -9
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