12A - WARNER ASSESSMENT DISTRICT

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Warner Industrial Community Assessment District July 7, 2015 Page 2 2. Authorize the City Manager and Clerk of the Council to execute an agreement with Fieldman, Rolapp & Associates, subject to nonsubstantive changes approved by the City Manager and City Attorney, to provide professional financial advisory services to facilitate assessment district formation, for a period expiring on December 31, 2016, with provision for one, one -year extension exercisable by written authorization of the City Manager and City Attorney, in an amount not to exceed $36,000. DISCUSSION The recommended actions will allow staff to investigate the costs, benefits, and commitments related to the formation of an Assessment District (AD). An AD legally establishes a mechanism to levy and collect funds for financing improvements that provide special benefits to participating properties. The AD proposed for consideration would fund reconstruction of the Warner Industrial Community (WIC) roadways. Before any decisions or commitments are made by City Council, the recommended actions would allow staff to prepare and present a full report to City Council which fully discloses the legal procedures necessary to form an AD, establishes probable costs and City commitments, and provides financing options for the construction of the improvements. Ultimately, the report will provide information on which property owners can base their vote on whether or not to form the AD. BACKGROUND In 2011, Ms. Gail Fosler, a Santa Ana business owner in the WIC, approached the City regarding the rehabilitation of local industrial streets (Exhibit 1). The total cost of design and construction of the roadway improvements in the WIC is estimated between $5 million and $6 million. Since City funding was not available for industrial street improvements, Ms. Fosler inquired about options to share the cost of repairs between property owners and the City. Staff has worked with the WIC property owners' representatives to identify the most appropriate and feasible option to share the costs of the needed improvements. The establishment of an AD as a cost - sharing opportunity would be beneficial to both the WIC property owners and the City. Well- maintained roadways in the WIC will clearly and directly benefit the industrial businesses and property owners in that area. Economically productive businesses operating on well- served properties will benefit the City in terms of a higher local tax base and employment. Additionally, based on the project schedule for the City's pavement management system, funding for these improvements will not be available for 10 to 15 years. By establishing this AD, the roadway repair project would be accelerated and completed within 12 months. Success of this public - private partnership will provide an alternative funding model for other industrial areas in the City that need roadway infrastructure repairs. 12A -2