Attachment 3
MILLS ACT COMPREHENSIVE REVIEW WORK PLAN
The comprehensive review will address the following areas:
Existing Contracts and Transition. Conduct a contract-by-contract review of all approximately 414 existing agreements; establish a verified inventory; identify incomplete records, required inspections, completed and outstanding work, and potential compliance concerns; distinguish City administrative deficiencies from property-owner noncompliance; and develop an existing-contract transition plan.
Inspections. Determine the status of required five-year inspections, establish a schedule for overdue inspections, and recommend the appropriate professional and administrative structure for future inspections.
Comparison Jurisdictions. Review Mills Act programs in California jurisdictions, including but not limited to Anaheim, Brea, Carmel-by-the-Sea, Claremont, Costa Mesa, Dana Point, Fullerton, Huntington Beach, Laguna Beach, Long Beach, Monrovia, Pasadena, San Clemente, San Juan Capistrano, Santa Ana, South Pasadena, and Tustin. The review will evaluate program eligibility, application and approval procedures, phased application models, fees, inspections, compliance and enforcement, nonrenewal, staƯing, technology, and overall program administration.
Program Size and Growth. Evaluate whether the City should establish annual limits on new contracts, a maximum number of active Mills Act contracts citywide, limits on contracts held by a single owner or ownership entity, methods for prioritizing applications when demand exceeds available capacity, and the relationship among program size, fiscal impacts, preservation priorities, and staƯing capacity. The review will also consider whether numerical limits are appropriate at all.
Contract Duration. Evaluate whether the City should establish any policy regarding the duration of future Mills Act participation consistent with State law. The review will consider continuation of the existing rolling contract structure without a predetermined maximum participation period, potential maximum participation periods implemented through nonrenewal, including approximately 15- and 20-year models as illustrative alternatives, and whether any maximum participation period is appropriate. The review will also address the treatment of existing contracts.
Eligibility and Future Applications. Evaluate owner occupancy, rental and investor ownership, commercial properties, entity ownership, objective weighted application scoring, historic significance, preservation need, public benefit, proposed investment, Attachment 3
owner-performed labor, phased application procedures, and other criteria for prioritizing future applications.
Program Participation and Eligibility Baseline. Identify current contracts within Old Towne Orange, the Orange Eichler Historic Districts, other eligible properties, residential and commercial participation, relevant ownership characteristics, and the estimated number of additional properties that could potentially qualify under existing eligibility standards.
Property Transfers. Evaluate transfer notifications, successor-owner obligations, verification of outstanding rehabilitation and maintenance requirements, compliance review upon transfer, and appropriate City administration when ownership changes.
Nonrenewal. Develop procedures for owner- and City-initiated nonrenewal, appropriate criteria for City-initiated nonrenewal, required notices and protest procedures, administration during the remaining contract term, continuing obligations, tax implications, property transfers, and fees during the wind-down period.
Compliance and Cancellation. Establish a standardized process for identifying deficiencies, owner notice, corrective action, inspections, documentation, legal review, enforcement, and cancellation proceedings when warranted.
Fiscal and Assessment Issues. Coordinate with the Orange County Assessor and other appropriate agencies regarding Mills Act valuation, Proposition 13, property transfers, nonrenewal, assessed-value restoration, participant tax savings, and corresponding impacts on City revenue.
Fees. Determine the reasonable cost and legal basis of preliminary eligibility review, complete application and contract processing, ongoing administration, reporting, inspections, ownership transfers, nonrenewal, and compliance or enforcement services and return with a recommended fee structure.
StaƯing and Professional Expertise. Identify appropriate roles for qualified historic preservation professionals, administrative and analytical staƯ, consultants, and other City personnel.
Technology and Automation. Evaluate existing City systems and available software for electronic contract files, owner reporting, inspections, automated reminders, compliance tracking, ownership changes, application processing, fees, document retention, workflow management, and management reporting.
Attachment 3
Implementation. Return with a complete implementation plan addressing existing contracts, policies, program size, eligibility, contract duration, staƯing, technology, fees, administrative procedures, stakeholder communication, and reopening of the program to new applications.