HomeMy WebLinkAboutReso 2011-247RESOLUTION NO. 2011-247
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AUTHORIZING THE DIRECTOR OF
FINANCE TO CLOSE AD 97-2 IMPROVEMENT FUND
(OTAY RANCH, VILLAGE ONE) AND DIRECT THE
TRUSTEE (US BANK) TO TRANSFER SURPLUS FUNDS TO
THE REDEMPTION FUND IN ORDER TO CALL BONDS,
PROVIDE REFUNDS, REDUCE FUTURE ASSESSMENTS,
REIMBURSE THE GENERAL FUND, AND ALLOCATE TO
CIP OTAY RANCH VILLAGE ONE MAINTENANCE OF
IMPROVEMENTS
WHEREAS, the City of Chula Vista (the "City") formed Assessment District (AD) No.
97-2 (Otay Ranch, Village One) (the "District") in 1997; and
WHEREAS, the District issued $12,430,000 Limited Obligation Improvement Bonds (the
"Bonds") in 1999 for the purpose of financing the construction and acquisition of certain public
improvements, which benefit properties within the District; and
WHEREAS, the public improvements financed by the Bonds include grading and site
preparation; slope and erosion control; domestic and wastewater improvements; street
improvements such as curb, gutter, medians, and sidewalks; and the installation of traffic signals,
street lights and signage; and
WHEREAS, the improvements within the District have been completed; and
WHEREAS, in accordance with Section 10427 of the California Streets and Highways
Code (the "Code"), staff is recommending that US Bank take the following actions:
1. Close Improvement Fund AD 97-2 and pay associated costs for the closure.
2. Transfer $1,000 to the City's General Fund.
3. Set aside monies in a trust fund to be allocated towards a Capital Improvement Project to
maintain the improvements that were financed through the District.
4. Transfer the remaining funds from the Improvement Fund to the Redemption Fund,
which shall be used to provide refunds to eligible property owners that prepaid their
assessments and to call bonds and reduce principal on active parcels.
WHEREAS, the following is a summary of the actions to be taken by US Bank and an
estimate of the associated allocations/funding:
Resolution No. 2011-247
Page 2
Descri lion Amount
Im rovement Fund Balance as of Mazch 31, 2011 * $1,529,871.77
General Fund Transfer $1,000.00
Closeout Costs ($8,000.00)
CIP for Maintenance of Im rovements ($563,263.00)
Call bonds and reduce future assessments ($882,209.79)
Refund to eli ible Pro ert Owners ($54,198.98)
Bond call ex enses includin redem lion remium ($21,200.00)
Endin Balance $0.00
*any funds remaining at the actual date of closure shall be applied to the redemption fund
WHEREAS, staff recommends creating a new Capital Improvement Project STL387
"Otay Ranch Village One Maintenance of Improvement" for purposes of maintaining
improvements completed in the benefited azea until funds are exhausted; and
WHEREAS, CIP STL 387 will be brought forward to City Council for appropriation of
$563,263 during the Fiscal Year 2012/2013 CIP Budget process.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Chula
Vista does hereby authorize the Director of Finance to close the Improvement Fund of
Assessment District 97-2 (Otay Ranch, Village One) and direct the trustee (US Bank) to take the
following actions:
^ Close Improvement Fund AD 97-2 and pay associated costs for the closure.
^ Transfer $1,000 to the City's General Fund.
• Set aside $563,263.00 in a trust fund to be allocated towards a Capital Improvement
Project to maintain the improvements that were financed through the District.
^ Transfer the remaining funds from the Improvement Fund to the Redemption Funds,
which shall be used to provide refunds to eligible property owners that prepaid their
assessments and to call bonds and reduce principal on active parcels.
Presented by
Approved as to form by
~~
Richazd A. Ho ~ns len R. ogins
Director of Publi orks 't Atto y
Resolution No.2011-247
Page 3
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 13th day of December 2011 by the following vote:
AYES: Councilmembers: Aguilar, Bensoussan Castaneda, Ramirez and Cox
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
~~ '~ ;'
Cheryl Cox, yor
ATTEST:
Donna R. Norris, CMC, City Clerk
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
I, Donna R. Noms, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2011-247 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 13th day of December 2011.
Executed this 13th day of December 2011.
Donna R. Norris, CMC, City Clerk