03.15 Mills Act 405 S Grand St1. SUBJECT
Mills Act Contract No. MAC - 268.0 -18 (Historic Property Preservation Agreement)
2. SUMMARY
A proposal to approve a Mills Act Contract for a contributing residential historic property in the
Old Towne Historic District. Estimated costs for repair, rehabilitation and maintenance performed
by the property owner for the minimum ten -year term of this contract total $67,000. Property
owners — Anne and John McDermott— 405 S. Grand Street.
3. RECOMMENDATION
Approve a Mills Act Contract (Historic Property Preservation Agreement) between the City of
Orange and the property owner (Application No. MAC - 268.0 -18) for the preservation and
rehabilitation of a qualified historic property.
4. FISCAL IMPACT
The City may incur a loss of property tax of approximately $578.00 per year. The actual amount
of property tax reduction under the Mills Act Contract will be determined by the Orange County
Office of the Assessor, using a predetermined income -based approach to assessment, considering
area rental rates and maintenance costs. The application fee for this contract offsets the cost of
staff review, property inspection and this public hearing. Rehabilitation will generate additional
revenues from building permit fees, and the local economy will benefit from additional work for
building contractors and material suppliers.
1 5. STRATEGIC PLAN GOAL(S)
Recognize, promote and preserve Orange's rich heritage, by expanding and strengthening
processes and practices related to the protection of cultural resources. Enhance and promote quality
of life including historic features of the City's Historic Districts and individually listed historic
resources to its citizens and visitors.
6. GENERAL PLAN IMPLEMENTATION
Cultural Resources and Historic Preservation Element:
Goal 3.0 Provide incentives and expand education efforts for historic preservation.
Policy 3.2 Provide incentives to encourage and support historic preservation.
7. DISCUSSION and BACKGROUND
Mills Act Contract No. MAC - 268.0 -18 is for 405 S. Grand Street, a single family residence and
contributing property to the Old Towne Historic District. Estimated costs associated with repair,
rehabilitation and maintenance to be performed by the property owner for the minimum ten -year
term of this contract total $67,000.00. Staff estimates the total tax savings to the property owner
over a ten -year period would be approximately $42,559.00. The Orange County Office of the
Assessor will determine the actual amount of property tax savings under the Mills Act Contract.
General contract conditions:
• Preserve and rehabilitate the historic property and its character - defining features in
conformance with adopted rules and regulations.
• Meet City of Orange Historic Property Maintenance Standards for all buildings, structures,
yards and other improvements on the property.
• Agree to property inspections once every five years of the contract term and /or when work
is completed to determine compliance with terms of the contract.
• File annual status reports on progress of improvements and repairs and /or any changed
conditions of the property.
• Provide a ten -year update of proposed rehabilitation and repair items, 90 days prior to the
tenth contract anniversary.
• Meet all other contract terms and conditions as specified in the Historic Property Preservation
Agreement.
8. ATTACHMENTS
1. Mills Act Contract MAC - 268.0 -18
2. Photographs of 405 S. Grand Street
N:ACDD \PLNG \I Iistoric Prescr ation \Mills Act Program \Applications \Clicnts 2018 \MAC 268.0 -18 - 405 S. Grand Strcct
ITEM 2 05/08/2018
CITY COUNCIL MINUTES MAY 8, 2018
3. CONSENT CALENDAR (Continued)
3.9 Number not used.
3.10 First Amendment to Installation and Service Surveillance Equipment Agreement No.
6520 with Convergint Technologies, LLC. (A2100.0; AGR- 6520.1)
ACTION: 1) Approved First Amendment to the agreement with Convergint Technologies,
LLC in the amount of $35,846, and authorized the Mayor and City Clerk to execute the
amendment on behalf of the City; and 2) Authorized the appropriation of $30,000 from
Park Development — Quimby Fees (511) unreserved fund balance to account number
511.7021.56015.20266 (Park Video Surveillance & Security).
3.11 Approval of the Fifth Amendment, Third Extension to Agreement with Conduent
State and Local Solutions, Inc. for Information Technology Services. (A2100.0; AGR -
5700.5)
NOTE: Mayor pro tem Murphy recorded an abstention due to a potential conflict with
employment.
ACTION: Approved the Fifth Amendment to the Information Technology Services
Agreement with Conduent State and Local Solutions, Inc., extending the Agreement for
one year commencing July 1, 2018, and terminating on June 30, 2019, and authorized the
Mayor to execute the Amendment.
3.12 Approval of plans and specifications for Annual Sewer Line Cleaning and CCTV
Video Inspection, Bid No. 178 -38; and authorization to advertise for bids.
(C2500.M.3)
ACTION: Approved plans and bid specifications and authorized advertising for bids for
the Annual Sewer Line Cleaning and CCTV Video Inspection project.
3.13 Number not used.
3.14 CLAIMS (C3200.0)
The following claim(s) have been received and investigated by the City Attorney's Office
and/or the Risk Manager. After a thorough investigation with the involved departments, it
is the recommendation of the City Attorney's Office that the claim(s) be denied.
a. Vinh T. Lam
b. Robert Anderson
c. Autumn Rochelle Martinez
ACTION: Denied Claim(s) for damages and referred to City Attorney and Claims Adjuster.
3.15 Mills Act Contract No. MAC - 268.0 -18 (Historic Property Preservation Agreement),
405 S. Grand Street. (A2100.0; AGR -6603)
ACTION: Approved a Mills Act Contract (Historic Property Preservation Agreement)
between City of Orange and the property owner for the preservation and rehabilitation of
a qualified historic property.
PAGE 5