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HomeMy WebLinkAboutReso 2000-092 RESOLUTION NO. 2000-092 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE DEFERRAL OF ASSESSMENTS AND ESTABLISHING CRITERIA TO QUALIFY FOR DEFERRAL FOR ASSESSMENT DISTRICT 97-01 WHEREAS, the improvements for Assessment District 97-01 were financed by the City and AD 97-01 was formed pursuant to the 1911 Block Act to obtain reimbursement for the improvement and other miscellaneous costs in accordance with Council Policy Number 505-01; and WHEREAS, the Act is a financing mechanism which authorizes local agencies to impose assessments on benefitting properties to fund the construction of public improvements; and WHEREAS, the property owners have an option of paying local assessments during the 30 day pay-offperiod following confirmation of assessments and if the assessments are not paid during that time or are deferred, the City will collect the unpaid balance in semiannual installments over a period of ten years at an interest rate of 7% per annum; and WHEREAS, property owners may pay the balance of their assessments at any time during the ten year repayment period without penalty; and WHEREAS, in response to property owner's concerns, staff prepared three payment altematives which were presented to Council on July 15 and July 22, 1997: Alternative 1 is the standard plan most property owners use to spread payments over 10 years at 7 percent interest. Altemative 2 provides for semi-annual payments of interest only over 10 years, with the principal due at the end of 10 years or when the property changes ownership. Alternative 3 provides for one balloon payment of both principal and interest at the end of 10 years or upon change of ownership. WHEREAS, it is recommended that Altematives 2 and 3 be offered only to property owners meeting the criteria set forth below; and WHEREAS, ifapproved, staff will receive and review deferral applications during May 2000 and if any property owner within the district meets one of the financial criteria, an Alternative 2 or 3 deferral agreement will be prepared and brought before City Council for approval; and WHEREAS, in accordance with the provisions of Chapter 13 of the Improvement Act of 1911 of the Streets and Highways Code of the State of California, any deferral of assessments shall be approved by a Council Resolution. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby approve the deferral of assessments for Assessment District 97-01 for improvements to Oxford Street from Fourth Avenue to Fifth Avenue in the City of Chula Vista. BE IT FURTHER RESOLVED that the City Council does hereby establish the following criteria to qualify for an Altemative 2 or 3 deferral: Resolution 2000-092 Page 2 1. An income less than or equal to the HUD Very Low Income Standards as contained in the City's Master Fee Schedule; or 2. A demonstrated financial hardship approved by Council (For example, a senior citizen, retired, and unable to pay the assessment). Presented by Approved as to form by orks Director ~mey PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, Califomia, this 21st day of March, 2000, by the following vote: AYES: Councilmembers: Davis, Moot, Salas, and Horton NAY S: Councilmembers: None ABSENT: Councilmembers: Padilla Mayor ATTEST: Susan Bigelow, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2000-092 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 21 st day of March, 2000. Executed this 21 st day of March, 2000. Susan Bigelow, City Clerk