55B - RESO - WARNER ASSESSMENT DISTRICT

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ASSESSMENT DISTRICT NO. 2015-01 (WARNER INDUSTRIAL COMMUNITY) METHODOLOGY OF ASSESSMENT SPREAD The law requires and the statutes provide that assessments, as levied pursuant to the provisions of the Assessment Law, must be based on the special benefit that the properties receive from the works of improvement. The statute does not specify the method or formula that should be used in any special assessment district proceedings, The responsibility rests with the Assessment Engineer, who is retained for the purpose of making an analysis of the facts and determining the correct apportionment of the assessment obligation. The City of Santa Ana has retained the services of Psomas as Assessment Engineer for the project known as Assessment District No. 2015 -01 (Warner Industrial Community). The Assessment Engineer then makes his recommendation at the public hearing on the Assessment District, and the final authority and decision rests with the City Council of the City of Santa Ana. After hearing all testimony and evidence presented at that public hearing, and upon conclusion of the public hearing, the City Council must make the final decision determining whether or not the assessment spread has been made in direct proportion to the special benefits received. Analysis /Recommended Financing Mechanism The City of Santa Ana is considering using assessment financing to improve the pavement of the local, interior roadway network within the Warner Industrial Community Assessment District (WIC), The purpose of the assessment methodology is to determine the proportionate amount of the assessment to be assessed to each parcel of land based on special benefits received by each parcel. For purposes of this study the following options, which are commonly used in the public finance industry, were considered: 1. Street Frontage. The street frontage Is defined as the length of the side of a parcel that is directly adjacent to the street. The street frontage method is a direct measure of the static utilization of each parcel and its corresponding special benefit proposed from the street improvement. A common way of apportioning costs to a parcel for assessment financing is to apply the cost based on the street frontage. However, this methodology works best when the area under consideration is comprised of parcels with mostly uniform depths, so that the parcel sizes are fairly consistent with their street frontage. Examples of the size versus frontage diversity in the Warner Industrial Community (WIC) is shown in the following examples: two properties have approximately 30 feet of frontage and one is 0.5 acres and the other is 2.8 acres; another two properties have approximately 125 feet of frontage and one is 0.4 acres and the other is 1.2 acres. Also, the WIC includes parcels that take access from private access easements and therefore have no frontage on the improved roadways, but still receive special benefit from the improvements. Another issue with this methodology is that corner properties fronting on two interior streets would carry 17 55B -35