SR-410-001 (7)
..
tj/()-ac/
V'-F
JUl - 1 1.
& . ,...
..
.. -, J ..-
~
C/ED:EDD:ERF:mb
Council Meeting: July I, 1986
Santa Monica, California
TO: Mayor and City Council
FROM: City staff
SUBJECT: Introduction for First Reading of a Procedural Ordinance
Specifying the Powers and Procedures for the Formation
of Assessment Districts and Levying of Assessments by
the City for the Purpose of Financing Improvements for
the Third Street Mall
INTRODUCTION
This report transmits an ordinance for first reading by the City
Council specifying the powers and procedures to establish
assessment districts and to levy assessments to finance public
improvements and to operate,
maintain,
and repair these
improvements.
The adoption of this ordinance is required in
order to proceed with the potential
establishment of an
assessment district to finance pUblic improvements for the Third
Street Mall and adj acent areas as proposed in the Third street
Mall Specific Plan.
BACKGROUND
The City council will shortly receive and adopt the Third street
Mall Specific Plan. The Specific Plan will contain a program of
public improvements for the Mall area that are necessary to
stimulate the economic revitalization of this Downtown core area.
The prinicipal technique to finance these public improvements
will be through the assessment of property owners and merchants
who will benefit directly from the improvements made to the area.
Y-F
JUl - I 1986
- 1 -
/.
---
.
. __ J-
Although the City has established various special districts
throughout the City, it currently has no enabling ordinance that
contains procedures for establishing the type of assessment
district needed to finance the types of improvements contemplated
for the Third street Mall and adjacent area.
DISCUSSION
Based on Council direction during previous reviews of the Mall
Specific Plan, City staff has investigated the feasibility of
proceeding with the establishment of an assessment district to
facilitate the financing of capital improvements by the City for
the Third street Mall. To initiate the legal proceedings needed
to establish such a district, it is necessary that the City
council approve an ordinance that legislates the procedures by
which an assessment district may be established and assessments
and fees levied of those property owners and merchants who
directly benefit from public improvements.
Council action to approve this enabling ordinance does not
establish the district but merely provides the mechanism to do so
should Council determine to proceed with this funding mechanism.
If it determines to proceed with the assessment district, this
enabling ordinance will be followed by the adoption of succeeding
resolutions by the city Council, ultimately concluding in the
sale of securities.
- 2 -
"
SUMMARY OF ORDINANCE
The attached ordinance to form assessment districts and levy
assessments contains the following procedures:
1) The City Council shall adopt a resolution of intention to
establish an assessment district and levy an assessment or
fee. The resolution among other topics shall:
o summarize the improvements to be made,
o describe the boundaries of the district,
o declare the Councilts intent to levy an assessment for the
improvements, and
o declare its intent to levy an assessment or fee to operate,
maintain, or repair the improvements if it intends to levy
such an assessment or fee.
2) In the resolution of intention, the city Council shall
request that a report be prepared that:
o describes the new improvements to be made and any existing
improvements to be acquired as part of the improvements to
be paid for by the assessment district,
o estimates the cost to construct and/or acquire the
improvements,
o estimates the costs to operate, maintain, and repair the
improvements during the first 5 years after providing the
improvements, if the Council intends to levy an assessment
or fee for operation, maintenance, and repair,
o delineates the boundaries of the proposed district,
o contains the amount of the assessment
formula by which the assessment will be
assessment or formula shall be in direct
estimated benefit each parcel is to
improvements, and
or provides the
calculated. This
proportion to the
receive by the
o provides the timing for payment of the assessment (annual,
semi-annual, or other periodic payment) and estimates the
number of years the assessment is to be collected.
3) After approving the report, the City Council shall approve a
resolution stating the time and place to hear protests. The
hearing shall be held not less than 30 days after adopting
the resolution. PUblic notices shall be published in the
newspaper, be posted in the area not more than 300' apart,
- 3 -
.'
Ernesto R. Flores, Manager
Christopher S. RUdd, Sr. Administrative Analyst
Economic Development Division
proord
- 5 -