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HomeMy WebLinkAboutOrd 1977-1764 . • 9-8-7'7 ' . . . . . ORDINANCE NO. 1764 . ' � I, AN ORDINAIdCE OF THE CITY OF CHULA VISTA AMENDING TITLE 15 OF THE CHULA VISTA MUrIIC3PAL CODE BY ADDING THERETO A NEW CHAPTER 15. 50 , ALL RELATING TO REQUIRE- MENTS AND PROCEDURES FOR REIP9BURSEMENT OF PERSONS CONSTRUCTING PUBLIC IMPROVEMENTS BENEFITING PROPERTIES OTHER THAtd THOSE OWNED BY THE DEVELOPER OR CONSTRUCTED , AT THE EXPENSE OF THE CITY CONFERRI*]G SIMILAR BENEFITS The City Council of the City of Chula Vista does ordain as follows : , SECTION I : That Title 15 of the Chula Vista Municipal Code be, and the same is hereby.amended by adding thereto a new Chapter 15. 50 to read as follows: _ CHAPTER 15. 50 REIMBURSEMENT REQUIREMENTS AND PROCEDURES FOR CONSTRUCTION OF PUBLIC IMPROVEMENTS, � Sec. 15 .50. 010 Purpose and Intent. In the course of development of properties whether through the subdivision process or the development or redevelopment of previously subdivided properties , it is frequently neces- , sary or desirable to require the developer to install certain public improvements , which improvenents exceed in size, capacity or number that which is normally required to bene- fit the development or which are located offsite of the development and which benefit property or properties not within the subdivision or development and which improvements are dedicated to the public. It is the purpose of the Council to establish requirements and procedures for reimbursement of either the developer and/or the City by those property owners who subsequently benefit by said improvements to the extent of their bene£it. It is the intent of the Council that all such property owners who subsequently benefit and who have made no contribution to the costs of said improvements, either directly or through any public improvement proceedings � £or which assessments are levied shall make such reimburse- ments. Said requirements may be imposed either prior to, concurrent with; or subsequent to the construction of said public improvements. It is further the intent o£ the Council that this chapter shall be in addition to and supplemental to the reimbursement procedures as set forth in the State ' Subdivision Map Act, the Streets and Highways Code and other provisions of the Municipal Code. Sec. 15. 50 . 020 Nature of Improvements. ' The State Subdivision Map Act provides in Sections 66485 and 66486 for the adoption of a. local ordinance which establishes requirements and procedures for reim- •� bursement and a requirement for entering into an agree- � ment with the subdivider to reimburse the subdivider for that portion of the costs of such improvements equal to the difference between the amount it would have cost the subdivider to install such improvements to serve the sub- division only and the actual cost of such improvements. Such improvements include, but are not limited to,. streets, (access or major thoroughfare) , bridges , drainage, water and • sanitary .sewer facilities. In regard to drainage and ' sanitary sewer facilities in the subdivision situation, - the City must adopt a plan as designated in Section 66483 to impose a reasonable charge on property within the area • benefited by such drainage or sanitary setaer facilities. - 1 - In a nonsubdivision development project, the City may follow the same procedure as established for reimbursement of sub- dividers whd,have constructed improvements of the nature set forth herein.�' In addition, the Director of Public Works shall define the area of benefit and establish:assessments as pro- vided herein, Sec. 15. 50. 030 Definitions. � "Public improvements" shall mean those improvements as ' set forth hereinabove including, but not limited to, streets (access or major thoroughfare) , bridges, drainage, water or sanitary sewer facilities and any. accessory improvements necessary to the functioning of said public improvements , � but shall not include any public improvements which will benefit only the development in which they are located or are installed by a public inprovement proceeding for which assessments are levied or are authorized requirements for the subdivision of land. Public improvements shall also include the cost of acquisition of any necessary land ' ' or right of way for the construction of the improvement. "Benefited area" shall mean the entire area which receives a benefit from the public improvement. The benefited area shall be that area, which in the opinion of the legislative body, upon the recommendation of the ' Director of Public Works , and after a public hearing, is benefited by the construction of the public facility. "Developer" shall mean the person who is responsible for constructing the public improvement. and has borne all or a portion of the costs thereof. . � "Actual or total estimated cost of public improvements" shall mean the estimated total of the construction, engi- neering, right of way and overhead costs of the public improvements to be constructed by the developer and the costs of the formation of a reimbursement district. If the scope of the project is altered during construction, , the City Council may increase the estimated cost by not more than -fifteen percent (158) without further notice. "Excess costs" shall mean the amount that is the difference between �the amount it would have cost the developer to install such improvements to serve his devel- , opment only and the total costs of such improvements. "Reimbursement district" shall mean the benefited area within which either developed or undeveloped property shall be made subject to a reimbursement charge or assessment for the purpose of reimbursing the developer for the excess , costs of the public improvemerit. Sec. 15. 50 .040 Request for Reimbursement Agreement. Whenever a developer who is required to install or replace such public improvements or whenever the City may . have participated in the costs of such improvements which either the developer or the City feels will be of benefit to property other than his own, which properties are not subject to an assessment for such costs under a public improvement proceeding, the developer or the City may request that the City Council form a reimbursement dis- , trict. Said request shall be in writing and filed with the City Clerk who shall place it on the agenda of the next regular meeting of the City Council. I; ,�b� . I . - 2 _ . Sec. 15. 50. 050 Council Action on Request. The City Council shall consider the developer ' s request and, in its• sole discretion, may, direct the City Manager to begin the proceedings for the formation:of a reimburse- ment district.:� Such direction to the. City Manager shall be conditioned upon the developer-applicant depositing with the Finance Department, a sum of money suf£icient to cover� the City 's costs in the formation of the reim- bursement district. . Sec. 15.50. 060 Costs of Formation of Reimbursement District. ' The costs of the formation of the reimbursement district shall include as estimated by the Director of Public Works: a. The costs of all notices published or mailed pur- suant to this policy: . b. The cost to the City of the. Director of Public Works ' s preparation' of the estimated costs of the facilities, determination of the benefited area and estimate . o£ the proper assessment. . . The developer shall deposit the .sum of $1000. 00 to reim- burse the City for its administrative costs in conducting the initial proceedings for the formation of the district. The developer shall be required, however, to pay the actual administrative costs for the formation of the district. In the event a reimbursement district- is not formed, the actual costs shall be nonrefundable, but should they be less than the deposit,- the balance shall be refunded. In the event a district is formed, the costs shall be considered an , incidental cost of the improvements to be recouped .by the terms of the reimbursement agreement. Sec. 15. 50. 070 Estimate of the Director of Public Works . Upon receipt of the deposit by .the Director o£ Finance, the Director o£ Public Works shall prepare and file: a. A map describing the bene£ited area which identi- fies all parcels within the area. - b. The total cost of the facilities including inci- dental expenses. - c. An estimate of the excess costs. d. An estimate of the assessment and spread thereof necessary to equitably pay the excess costs. In those situations where an excessive amount of time and labor would� be involved in the preparation of such documents and estimates , the Director of Public Works may request that special engineering services be retained to expedite and facilitate the preparation of said documents and estimates. The cost of any such engineering service shall be paid by the developer. The developer seeking a reimbursement agreement, pursuant to the provisions of this chapter, must prove to the satisfaction of the Director o£ Public Works that the costs reflect a balanced � . and fair sum either through a unit cost breakdown or pre- sentation of proof o£ formal bidding. The Director of - Public Works may in any case require that said developer submit his project for bids. . i - 3 - ��� Sec. 15. 50�. 080 Notice.and Hearing on Establishment of Reimbursement District. Upon• receiving the Director of Public Work' s estimates , the City Clerk shall set a hearing before the City Council and: ' a. The City Clerk;shall cause a notice of said hearing�, in- substantially the following form, to be published once_;in a newspaper of general circu- lation: in the City of Chula Vista at least ten (10) days prior to such�ihearing: NOTICE OF HEARZNG _ The City Council of the City of Chula Vista will hold a public hearing at on at the City Council Chambers at City Hall located at 276 Fourth Avenue, Chula Vista, California, to consider the establishment of a reimbursement district for the financing. of certain within the City. All property within the described area may be subject to a fee to pay the cost of providing such facilities, to-wit: That property more particularly described by plat on file in 'the office of the Director of Public Works. All. persons desiring to testify with respect to: the necessity of said public improvements, the cost of said public improvements , the benefited area or, the amount of the excess costs, may appear and be heard at said hearing. b. The City Clerk shall, at least 10 days prior to said hearing, also cause a copy of the above Notice to be mailed to each owner of real property within the benefited area as shown on the last equalized assessment roll. Such Notice shall be accompanied by a map of the proposed benefited area and a state- ment by the Director of Public Works describing: 1. The estimated cost of the public improve- ments; and 2 . The estimated or actual excess costs neces- sary to pay for the public improvements; and 3. The estimated or actual costs which will be assessed against the property when said pro- perty is developed and nakes use of the public improvements Sec. 15. 50. 090 Action by City Council. After the public hearing, the City Council may, in its sole discretion, direct that a reimbursement agree- ment with the developer and/or the City of Chula Vista be prepared containing such provisions as the Council deems to be necessary, desirable and equitable. Said provisions may include the following conditions: a. Collection from other persons including public ' agencies using such improvements for the benefit of real property not within the subdivision or develop- ment area of a reasonable charge for such use. 1�� - 4 - . b. A requirement for a contribution to the-developer and/or the City for that part of the' cost of the im- provements. that benefit real property outside of the � development area or the subdivision' and levy a charge upon said real property so benefited as a reimburse- , ment for such costs plus simple interest thereon at " seven percent (78} per annum to be paid to the developer and/or the City. c. Establish and maintain reimbursement districts for - the levy and collection:of such charge or costs from the property benefited. . . . Once the allocation of the cost has been approved by a resolution of the Council of the City of Chula Vista, it shall constitute a statement oY charges due from the owners and -their successors , heirs or assigns of the various parcels of property as their share of the public improvements. The Director of Public Works shall respread the assessment after final costs have been• calculated and shall cause the resolution to be appropriated modified prior to its recordation. _ The City Clerk shall record a copy of the Council reso- lution with the County Recorder. The resolution shall include- the' ownership of record, the legal description , and the amount of charges £or each lot or parcel within the district. Said reimbursement shall be collectable .by the City at either the time the property is to be subdivided or upon a request for a building permit £or development of the • property. . _ . . Sec, 15. 50 . 100 Limitations .on Reimbursement Agreement. The reimbursement agreement shall be subject to an annual seven percent (78� interest. charge as provided in Section 15. 50 . 090, six percent (68) of_-which shall be payable to the person who is entitled to reimbursement - during the term o£ the agreement, and one percent (18) shall be payable to the City during the term of the contract and placed by the City in its General Fund to cover the admini- strative costs of the City in its expense in handling the collection of such funds . At the conclusion of the term of the reimbursement agreement, the total annual seven percent (7�) interest' charge shall be payable to-the City. The term of any reimbursement agreement shall be established by the City Council based upon the reasonable expectations of the development of benefited properties -or .the utilization of the public improvement by such benefited properties; pro- vided, however, that the maximum term of any reimbursement agreement .shall be for a period of 20 years. =After termi- nation of the term established by said agreement, the same reimbursement charges shall be imposed, but the funds collected there£rom will not be paid to the developer or its successors in interest, but shall be deposited in . the General .Fund of the City of Chula Vista. - If during a twenty (20) year period following the forma- tion of the district, any person either files a tentative map or a tentative parcel map or applies for a building permit on a lot for which a charge for public improvements has been established in accordance with this chapter, and a - s - �� such person or his predecessor in interest has not paid such charges to .the City of Chula Vista, the established charge shall be paid prior to the filing of the final map I or parcel map, or the issuance o£ the building permit; . provided, however, such paynent shall not be required in connection with building permits having a total improvement value of $10, 000 or less; provided, however, that improve- ments which are a modification or addition to single family structures shall not be subject to an assessment under a reimbursement agreement and provided further that the money paid shall include' the principal charge plus interest in the amount of seven percent (78): from the date o£ establishment of the charge. Sec. 15. 50 . 110 Obligation of Developer or Subdivider to Claim Monies. All moneys collected under the provisions of this chapter shall be- deposited by the Director of Finance of the City of Chula Vista into a Public Improvement Reim- bursement Trust Fund or a Subdivision Map Act Reimburse- ment Trust Fund. The Director of Finance shall refund to the person or persons who paid for the improvements for which the charges were collected, or to their assignees , all moneys so collected; except, however, that one percent (1�) per annum of all such moneys collected shall be re- tained by the City to defray the expenses incurred in administering the Trust Fund. . The City shall notify the developer or subdivider of the existence of monies deposited in said fund. Said notice shall be made to the address contained in the reimburse- ment agreement and no further inquiries shall be required by the City. If any such money remains on deposit with the City without being claimed by the party rightfully � entitled to it within one year after notice has been made as provided herein, such money shall- be forfeited to the City, and then it shall be transferred to the General Fund of the City. � SECTION II: ' This ordinance shall take effect and be in full force and effect on the thirty-first day from and after its passage and approval. Presented by Approved as to form by / V .�°�, _ f�� • George D. Lindberg, City Attorney George D. Lindberg, City Attorney �V� \ � _ 6 _ ADOPTED AND APPROVED Bl' THE CITY COUNCIL OF THE CITY OF CHULA VISTA� CALIFORNIA, thls zOth d0y of- Septemher 1971—, by the following vote, to—wit: AYES� CounCilmen _ Scott , E¢dahl , Hobel , Cox NAYES� Councilmen None ABSTAIN: Coimcilmen vone ABSENT: Councilmen Hyde 7 v��� Mayor/of ihe City of Chula Visfa � � Pro Tempore ATTEST. - � J / ✓ City Clerk� STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) I, JENNIE M. FULASZ, CMC, CITY CLERK of the Cify of Chula Visfa, California, DO HEREBY CERTIFY ihai the above and foregoing is a full, irue and correct copy of ,and that the same has not been amendedor repealed. 7. DATED (seal) City Clerk � b� cc-sso �