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HomeMy WebLinkAboutReso 2000-118 RESOLUTION NO. 2000-118 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 96-01 WHEREAS, the improvements for Assessment District 96-01 were financed by the City and AD 96-01 was formed pursuant to the Improvement Act of 1911 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 often 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 alternatives which were presented to Council on July 15 and July 22, 1997: Alternative I is the standard plan most property owners use to spread payments over ten years at 7% interest. Alternative II provides for semi-armual payments of interest only over ten years, with the principal due at the end of ten years or when the property changes ownership. Alternative III provides for one balloon payment of both principal and interest at the end of ten years or upon change of ownership. WHEREAS, it is recommended that Alternatives II and III be offered only to property owners meeting the criteria set forth below; and WHEREAS, if approved, staff will receive and review deferral applications during May and June 2000, and if any property owner within the district meets one of the financial criteria, an Alternative II or III 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. Resolution 2000-118 --, Page 2 NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby approve the deferral of assessments for Assessment District 96-01 for improvements to Twin Oaks Avenue from Naples Street to Emerson Street in the City of Chula Vista to allow payments over ten years at 7% interest. BE IT FURTHER RESOLVED that the City Council does hereby establish the following criteria to qualify for an Alternative II or III deferral: 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 J P. Lipr~)irecto'r~C~'' f~o~.' . Kaheny ~"~ Resolution 2000-118 Page 3 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 18m day of April, 2000, by the following vote: AYES: Councilmembers: Davis, Moot, Padilla, Salas, and Horton NAYS: Councilmembers: None ABSENT: Councilmembers: None ATTEST: Shirley Hort~,~Mayor 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. 2000-118 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chu]a Vista City Council held on the 18th day of April, 2000. Executed this 18th day of April, 2000. Sus~igelow, City Clerk