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HomeMy WebLinkAboutReso 1995-17980 RESOLUTION NO. 17980 1I RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE DEFERRAL OF THE PAYMENT OF ASSESSMENTS, ESTABLISHING THE CRITERIA TO QUALIFY FOR DEFERRAL, AND AUTHORIZING THE MAYOR TO SIGN THE DEFERRAL AGREEMENTS FOR ASSESSMENT DISTRICT NO. 93- 01 WHEREAS, the proposed improvements for the construction of alley improvements from J Street to Kearney Street between Elm Avenue and Second Avenue are being financed through the formation of Assessment District No. 93-01 (AD 93-01) pursuant to the 1911 Biock Act; and WHEREAS, the Act is a financing mechanism which authorizes local agencies to impose assessments on benefited property to fund the construction of public improvements; and WHEREAS, at a public hearing held on May 25, 1995, Council directed staff to bring to Council a resolution allowing the property owners to defer the payment of their assessments; and WHEREAS, the property owners have the option of paying the total assessment during the 30-day pay-off period following the confirmation of assessments, planned for the end of 1995; and WHEREAS, if the assessment is not paid at that time, the City shall collect the 'unpaid balance in semiannual installments in conjunction with the collection of City taxes and in accordance with the Resolution of Intention, the balance shall be paid over a period of ten (10) years at an interest of 7% per annum; and WHEREAS, in response to property owners concerns, Council directed staff to identify additional alternatives that may allow the deferral of the payment of the assessments and lessen the financial impact of the proposed assessments; and WHEREAS, according to 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; and WHEREAS, staff recommends that the following alternatives be approved by Council: · Semi*annual payments (interest only) and payment of the principal at the end of a lO-year term or at the time the property is transferred, whichever occurs first. At the end of the 10 years Council may grant, on a case-by-case basis, a time extension to fulfill the payment obligations. Resolution No. 17980 Page 2 One payment (principal and accumulated interest) at the end of a 10-year term or at the time the property is transferred, whichever occurs first. At the end of the 10 years Council may grant, on a case-by-case basis, a time extension to fulfill the payment obligations. WHEREAS, staff also recommends that Council require that property owners shall meet one of the following Criteria ("Criteria") to qualify for deferrah 1. Have an income less than or equal to the HUD Very Low income standards as contained in the City's Master Fee Schedule. 2. A demonstrated financial hardship approved by Council. (For example, a senior citizen, retired, and unable to pay the assessment.) WHEREAS, qualifying property owners that elect a deferred payment plan shall enter into a deferral agreement with the City upon confirmation of assessments. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby approve the Criteria for granting a deferral of the payment of assessments, and authorizing the Mayor or City Manager in his/her discretion, to sign the deferral agreements for Assessment District No. 93-01 upon application and proof of satisfaction of the required B~rpucr~eo~~c/ by Presented by Ap ed as to ~ 8oogaar hn P. Lipp tt ector of Public Works City Attorney Resolution No. 17980 Page 3 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 25th day of July, 1995, by the following vote: AYES: Councilmembers: Alevy, Moot, Padilia, Rindone, Horton NAYES: Councilmernbers: None ABSENT: Councilmembers: None ABSTAIN: Councilmembers: None Sh~rton, Mayor ATTEST: Authelet, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that the foregoing Resolution No. 17980 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 25th day of July, 1995. Executed this 25th day of July, 1995.