HomeMy WebLinkAboutAgenda Statement 1986/05/27 Item 15a,b,c COUNCIL AGENDA STATEMENT
Item 15
Meeting Date 5/27/86
ITEM TITLE: a) Resolution 4250 / making findings on a petition
requesting the acquisition of certain public improvements to
be acquired pursuant to the terms and provisions of the
"Municipal Improvement Act of 1913."
b) Resolution making preliminary appointments and
approving Consulting Agreements, and a Reimbursement Agreement
for the Assessment District proceedings.
c) Resolution establishing boundaries for the
proposed Assessment District.
SUBMITTED BY: Director of Public Works/City Engineer
REVIEWED BY: City Manager (4/5ths Vote: Yes No X )
The EASTLAKE DEVELOPMENT COMPANY has requested the City initiate proceedings
under the 1913 Act for an Assessment District to "acquire" certain water,
sewer, and street improvements in the "Hills and Shores" area of the EASTLAKE
development. The EASTLAKE Public Facilities Financing Plan anticipated
Assessment Districts as the secondary method of financing on-site improvements
with Subdivision Map exactions as the primary method, although several changes
in the financing plan have been made including the already approved Assessment
District 85-2. Actually, the original plan was for one assessment district,
but because of timing, it was necessary to split the district into two
districts, 85-2 and 86-1 .
RECOMMENDATION: Adopt resolutions.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable
DISCUSSION:
The City of Chula Vista currently has approved EASTLAKE Assessment District
85-2 to provide on-site water and sewer lines in the EASTLAKE "Business Park,"
a reservoir off-site, water transmission lines, and street improvements on
Otay Lakes Road.
The "Hills and Shores" residential area will participate in Assessment
District 85-2 based on benefit received from the reservoir, pump station, and
water transmission lines while the "Business Park" area will be additionally
assessed for the on-site water/sewer improvements and the Otay Lakes road
improvements that specially benefit that area.
Page 2, Item 15
Meeting Date 5/27/86
Assessment District 85-2 was initiated in November 1985 prior to any final map
approval for either the "Business Park" or the "Hills and Shores." The
developer fronted $3 million to begin construction on the reservoir and pump
station and would have been responsible for all the improvements of 85-2 had
the Council not finally approved the district on May 13, 1986. The Wedin
report "Public Facilities Financing Plan" had originally proposed that the
water-related improvements in District 85-2 be financed by a Mello-Roos tax
district. However, our consultants recommended a 1913 Act procedure instead
due to its proven success for both 85-2 and 86-1 which is the subject of this
resol uti on.
The EASTLAKE DEVELOPMENT COMPANY has requested the City to initiate Assessment
District 86-1 to acquire certain on-site water, sewer and street improvements
in East "H" Street and the loop streets estimated to cost $3.8 million that
specially benefit only the "Hills and Shores" residential areas. One reason
the improvements being proposed for Assessment District 86-1 were not included
in 85-2 was because of the necessity to get the construction underway
immediately to meet the development schedule for the residential community and
assessment district procedural/timing requirements.
One uestion which ma y be raised regarding formation of an additional
assessment district for the "Hills and Shores' subdivision is the cumulative
financial impact of proposed public financing mechanisms on new home owner in
the "Hills and Shores" development. In addition to Assessment District 85-2,
the Sweetwater and Chula Vista School Districts are considering the use of the
MELLO-ROOS legislation for financing schools. The City has also approved the
formation of a 1972 Act Maintenance District for the maintenance of
landscaping and other appurtenances in the public right-of-way. Although
final special tax and assessment levies are not known at this time, an
analysis of the proposals indicates that special taxes and assessments will
not exceed 1% of the purchase price of the houses in EASTLAKE. Attached is an
example of a "Disclosure Statement" prepared by our consultants that is being
distributed to all prospective home buyers in EASTLAKE. The numbers are
preliminary and will vary depending on the size of the dwelling unit.
The 1 91 3 Assessment Act does allow purchase of the improvements prior to
acceptance by the public agency. Prospective homeowners have already been
advised that this district was proposed.
FISCAL IMPACT: None to the City. The Assessment District provides for all
necessary funding.
WPC 2099E
by h City Council of
Chula Vista, California
Dated 2'_
TO: CITY COUNCIL
CITY OF CHULA VISTA
PETITION AND WAIVER FOR
SPECIAL ASSESSMENT PROCEEDINGS
1. We, the undersigned, are the property owners of land shown on the map attached as
Exhibit "A" and made a part of this document.
2. We petition you to undertake special assessment proceedings for the following
described public improvements:
The financing and acquisition of certain water improvements, together with
appurtenances and appurtenant work, to serve and benefit properties within the
boundaries of ASSESSMENT DISTRICT NO. 86-1. For particulars, reference is made
to the Exhibits attached hereto.
3. We understand:
A. THAT the cost of the improvements will be charged to the land which benefits
from the improvements, including our land;
B. THAT a report will be prepared on the project, including plans and specifica-
tions, a detailed cost estimate, and a division of the costs among the
benefited parcels of land, and that you will conduct a public hearing on the
report;
C. THAT the cost of engineering, legal and other incidental expenses will be
included in the project cost;
D. THAT each property owner may pay his assessment either in cash without
interest or in installments with interest over a period of years.
4. We consent to other appurtenant work and acquisition that is, in the opinion of
the legislative body, necessary to properly effectuate said improvements, and we
hereby expressly waive the proceedings required and all limitations under the
"Special Assessment Investigation, Limitation and Majority Protest Act of 1931",
being Division 4 of the Streets and Highways Code of the State of California.
5. We hereby further request that all efforts and attempts be made so that said
proceedings and the Resolution of Intention can be adopted at the earliest time.
6. We agree to dedicate all required rights-of-way or easements necessary for the
works of improvement, all dedications to be accomplished before the ordering of
the improvements.
I BOUNDARY
MAP
ASSESSMENT DISTR1CT__ 86 - 1
( ACQUISITION )
CITY OF CHULA VISTA
COUNTY OF SAN DIEGO, STATE OF CALIFORNIA
555-030-08
555-010-o3 wok) 1
IPOR.1� N M NO.tt
\ - ../60 N\(.R / MAP N \
/ /Y,AP J4F-11162
` I/,' ' 4 ree�In.11..19
M/►P NO. tugs ` I
)r, k��s r IIO.Lt444 ...............
655-050-tt ! 40" r`'��� j '4 V !
ytPOR.I \`\NIL�I ���V ` 1
NM A. ' , 4 i MAP ILQ.lL4L1_ O 800 IS
/ L� 400
aaa �fi/� TS DMvE s55-oTO-tt
._U � � \- 4 9 11-1-k 50;0%7/-
,, , KESHs / 1
yAL> 4 /% / �''# 1 __ ,
-r-
, \ GOTHAM STREET pIP/• / ••'�.
MAP x.114 . \ ' ��' I
..••• —_-
I HERESY CERTFY THAT TIE WITHIN MAP SHOWING PROPOSED \ /
BOUNDARIES OF ASSESSMENT DISTRICT 86-1,CITY OF CHIAA
VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, WAS \
APPROVED BY THE CITY COUNCIL OF THE CITY OF CHULA VISTA
AT A.REGULAR MEETING THEREOF,HELD T15S._OF_,1986 /
BY RESOLUTION ND. DESCP!PTION OF WORK, LEGEND
ASSESSMENT DISTRICT BOUNDARY
CITY CLERK,CITY OF QUA VISTA PARCEL BOUNDARY
i1/1/21 STREET IMPROVEMENTS
FILED N THE OFFICE OF TIE CITY CLERK OF THE CITY OF CHULA ___a DOIESTC WATER LINE
VISTA THIS DAY OF .1986.
$-.4- SEWER UNE
CITY CLERK,CITY OF CHULA VI SIX Z>antmz EXISTING IMPROVED STREETS
FUTURE STREET IMPROVEMENTS
FILED THIS DAY OF ,1986 N BOOK ,AT PAGE OF MAPS OF 0 PARCEL NO.
ASSESSMENT DISTRICTS IN THE OFFICE OF THE COUNTY RECORDER
OF TIE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA. 123-456-78 ASSESSOR'S PARCEL NO.
COUNTY RECORDER
COUNTY OF SAN DIEGO WAS A.S,SOCIATEs
BY CONSULTING INYINIIRS A3 PLANN RS
........r•awO sac um woR tt 2/11-9111
DESCRIPTION OF WORK
ASSESSMENT DISTRICT (Acquisition) NO. 86-1
CITY OF CHULA VISTA
The general description of work to be acquired by this Assessment District
consists of the following:
A. Construction and installation of approximately 8,900 feet of 12 inch
domestic water line and appurtenances in Lakeshore Drive, EastLake
Drive, Hillside Drive and located within an easement from Lakeshore
Drive southerly approximately 600 feet then westerly to Gotham Street.
B. Construction and installation of approximately 2,700 feet of 16 inch
domestic water line and appurtenances in Lakeshore Drive and EastLake
Drive.
C. Construction and installation of approximately 2,900 feet of 20 inch
domestic water line and appurtenances in EastLake Drive and Lakeshore
Drive.
D. Construction and installation of approximately 600 feet of 24 inch
domestic water line and appurtenances located in an easement from
Lakeshore Drive to 600 feet south of Lakeshore Drive.
E. Construction and installation of approximately 8,200 feet of 8 inch sewer
line and appurtenances in East "H" Street, EastLake Drive, Hillside
Drive, Lakeshore Drive and on-site within easements.
F. Construction and installation of approximately 3,800 feet of 10 inch
sewer line and appurtenances in East "H" Street and on-site within
easements.
G. Construction and installation of approximately 1 ,100 feet of 12 inch
sewer main in East "H" Street.
H. Construction and installation of street improvements for Lake Shore
Drive, EastLake Drive, Hillside Drive (Reisling Street to Rue Avallon)
and East "H" Street (Corral Canyon Road to EastLake Drive) . Street
improvements include pavement, curb, gutter, sidewalk, street lights
and other related appurtenances.
•
•
It is hereby further stated that the property within the boundaries of the Assessment
District at this time is subject to existing mortgages or deeds of trust.
THE UNDERSIGNED hereby state, as mortgagees or beneficiaries under any existing deeds
of trust, that they acknowledge and join in signature in the Petition for the above-
referenced Assessment District. For further particulars as to any mortgagees or
beneficiaries under any deeds of trust, reference is made to the title report, a copy
of which is attached hereto.
DATE OF SIGNING
NAME OF LENDER
SI SIGNATURE
SECURITY PACIFIC NATIONAL BANK,
4-2-86 a national banking association. .,-.-
B
Gary . rnett,. Vice President
uL
STATE OF CALIFORNIA
COUNTY OF ORANGE SS.
On Aril 2 1986
,before me,the undersigned,a Notary Public in and for said State,personally appeared
satisfactory evidence to be a Vice Presidents personally known to me or proved to me on the bas s
Gar L. Arnett
of
teal' "'r '443. ;e»• 'er of the SECUR ITY PACIFIC NATIONAL BANK,the assoc ation that the within Instrument,known to me Ins ument on behalf of the association therein named,and acknowledged to me that such association exe
su association executed the within Instrument pursuant to its by-laws or a resolution of its board of directo sto be the persons who executed the within
cuted the same,and acknowledged to me that
ITNESS my hand and official seal.
.., OFFICIAL SEAL
(seal) I MARY ELLEN CROWDER
k ;r a NOTARY PUBLIC-CALIFORNIA ,i r^
F K ORANGE COUNTY t f ��
MY Commission Expires Aug. 11, 1989 `F >/ '.1
030874 8-83' e l� ' ` ��� `
25 PS Bank Officer's Notarial Acknowledgement 's--'' ' v
G s v)
Public's Signature)
•
THE UNDERSIGNED HEREBY CERTIFY UNDER PENALTY OF PERJURY THAT THEY ARE
THE OWNERS OF RECORD OF THE PROPERTY AS SET FORTH HEREIN. .
NAME OF PROPERTY
ATE OF OWNER AND STREET LEGAL DESCRIPTION OR
GNING ADDRESS COUNTY TAX PARCEL NO. SIGNATURE
EASTLAKE DEVELOPMENT See Exhibit "A"
COMPANY, a California attached
general partnership. By: DAVID IV, INC.,
701 B Street, Suite 730 a California corporation
San Diego, CA 92101
P
By: f. A
Robert L. Santos, Vice President
By: DANIEL V, INC.,
a Californi corporation
By: 1.1 ,,, ,^.� l t,,r
Robert L. Santos, Vice President
STATE OF CALIFORNIA }
} sec.
COUNTY OF SAN DIEGO }
On this ;A:..1 day of .� ), /4_.-- , 1986, before me, the undersigned, a Notary Public in and for said
tate, personally appeared ROBERT SANTOS, personally known to me or proved to me on the basis of satisfactory evidence to be
he person who executed the within instrument as the Vice President of DAVID IV, INC., a California corporation, a partner of
L
TLAKE DEVELOPMENT COMPANY, the partnership that executed the within instrument, and acknowledged to me that such
corporation executed the same as such partner and that such partnership executed the same.
. WITNESS my hand and official seal.
'AN-r; PATRICIA YOUNG . € Vii, ! .- r , s'
mg PUNIC NUM: Notary •, ic
P NCDAI WFICI Mt
\,•�J so Deco cougar My commission expires Sept- -r 3, 199
NI Cuuu.uu,E .3.tm1N
•
��
On this�-- day of ,,Iir24/7--) , 1986, before me, the undersigned, a Notary Public in and for said
S te, personally appeared ROBERT SANTOS, personally known to me or proved to me on the basis of satisfactory evidence to be
t person who executed the within instrument as the Vice President of DANIEL V, INC., a California corporation, a partner of
TLAKE DEVELOPMENT COMPANY, the partnership that executed the within instrument, and acknowledged to me that such
rporation executed the same as such partner and that such partnership executed the same.
WITNESS hand and official seal.
PATRICIA YOUNG ( n'/Ti!; fr- '`'"------- /-/L._/;)(..
''/, r
ran
{ Notary Public
n expires- tembEr 1989
����� My cammissia p p s
\,�r f �h Cenxm+san hp Sept 3.MS
FILED IN THE OFFICE OF THE CITY CLERK THIS 27th DAY OF May
1986.
Said Petition represents 81 % of the assessable area, as shown on the
attached map.
vC ea
CITY OF CHULA VISTA
STATE OF CALIFORNIA
EXHIBIT "A"
LEGAL DESCRIPTION
Those portions of Sections 27, 28, 33 and 34 all being in Township 17 South,
Range 1 West, San Bernardino Meridian, in the City of Chula Vista, County of
San Diego, State of California, according to the Official Plat thereof, all
being described as a whole as follows:
Beginning at the Northwest corner of the Southeast Quarter of said Section 34;
thence along the South line of the Northwest Quarter of said Section 34 North
88°53'15" West 2680.31 feet, to the Southeast corner of the fractional
Northeast Quarter of said Section 33; thence along the South line of said
fractional Northeast Quarter North 89 921'14" West 2554.30 feet, to the
Westerly line thereof; thence along said Westerly line to and along the
Westerly line of said fractional Section 28, North 17°52'14" West 4207.74
feet, to the North line of the South Half of the South Half of said fractional
Section 28; thence along said North line South 89°40'56" East 3326.91 feet;
thence leaving said North line North 53°17'52" East 663.88 feet, to the West
line of the Southwest Quarter of said Section 27; thence along said West line
North 1°49'21" West 160.00 feet more or less to an angle point in the Boundary
of Parcel Map No. 13883; thence leaving said West line South 48°42'07" East
1858.49 feet to the beginning of a tangent 2917.00 foot radius curve concave
Southwesterly; thence Southeasterly along said curve through a central angle
of 32°47'53" a distance of 1669.79 feet; thence tangent to said curve South
15°54'14" East 975.04 feet to the beginning of a tangent 3,917.00 foot radius
curve concave Westerly; thence Southerly along said curve through a central
angle of 12°21'23" a distance of 844.74 feet; thence tangent to said curve
South 03°32'51" East 200.09 feet; thence North 88°53'51" West 27.80 feet to
the Point of Beginning.
ld/ef
CERTIFICATE OF SUFFICIENCY OF PETITION
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
GEORGE SIMPSON, the undersigned, hereby CERTIFIES as follows:
That I am the duly appointed PROJECT MANAGER of the CITY OF CHULA VISTA, CALIFORNIA.
That on the day of /APR/4 1986,, I reviewed a Petition and Waiver
for the forma ion o1 an Assessment District for certain public works of improvement,
together with appurtenances, appurtenant work and acquisition, where necessary, in a
special assessment district known and designated as
ASSESSMENT DISTRICT NO. 86-1
(hereinafter referred to as the "Assessment District"), a copy of which is on file in
the principal office of the City Clerk.
That I caused said Petition and Waiver to be examined and my examination revealed
that said Petition and Waiver has been signed by property owners representing more
than sixty (60%) percent of the assessable area of lands within the boundaries of the
proposed Assessment District, all as prescribed by Section 2804 of the Streets and
Highways Code of the State of California ("Special Assessment Investigation, Limita-
tion and Majority Protest Act of 1931") .
That said Petition and Waiver did represent ( Q f %) percent of
the assessable area of property within the boundaries of - he Assessment District.
That said Petition and Waiver meets the requirements of Section 2804 of the Streets
and Highways Code of the State of California.
Inasmuch as the improvements contemplated are to be subdivision conditioned improve-
ments, said examination also revealed that the Petition and Waiver has been signed
also by all mortgagees or beneficiaries under any existing mortgages or deeds of
trust as required, and proof of ownership and names of mortgagees or beneficiaries,
if applicable, is attached hereto.
Executed this 2 day of ,019,12/4. 10%6, at Chula California.
•
CITY OF CHULA VISTA
STATE OF CALIFORNIA
CERTIFICATE OF FINANCIAL CONSULTANT
CITY OF CHULA VISTA
ASSESSMENT DISTRICT NO. 86-1
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
I, CARL KADIE, hereby CERTIFY under PENALTY OF PERJURY:
1. That I am the authorized representative of KADIE-JENSEN & JOHNSON, the duly
appointed FINANCIAL CONSULTANT.
2. That the City at this time is considering the formation of a special assessment
district pursuant to the provisions of the "Municipal Improvement Act of 1913",
being Division 12 of the Streets and Highways Code of the State of California,
said special assessment district known and designated as ASSESSMENT DISTRICT NO.
86-1.
3. That said proceedings are to be initiated by a Petition signed by property owners
of more than 60% in area of the property subject to assessment for the proposed
improvements said Petition has been submitted to the City Council for
consideration.
4. That based upon the documentation attached and an analysis and study of valua-
tion, it is hereby determined that the total estimated amount of the proposed
assessments will not exceed seventy-five percent (75%) of the estimated fair
market value of the land proposed to be assessed after the proposed public
improvements shall have been constructed. This determination is made pursuant to
the requirements and authority of Section 2804.1 of the Streets and Highways Code
of the State of California. For further particulars, reference is made to the
support data and documentation attached hereto.
r 1986, at San Diego, California.
EXECUTED this Z`t� day of , 9
A-Kim** N & JONSS,
_ .ice
-""rati., _ ANT
CITY OF ■ ULA VISTA
STATE OF C' s'NIi
COUNCIL AGENDA STATEMENT
Item 15
Meeting Date 5/27/86
ITEM TITLE: a) Resolution making findings on a petition
requesting the acquisition of certain public improvements to
be acquired pursuant to the terms and provisions of the
"Municipal Impprovement Act of 1913."
b) Resolution /Z-502 making preliminary appointments and
approving Consulting Agreements, and a Reimbursement Agreement
for the Assessment District proceedings.
c) Resolution establishing boundaries for the
proposed Assessment District.
SUBMITTED BY: Director of Public Works/City Engineer ``, v
REVIEWED BY: City Manager 1‘- , -- (4/5ths Vote: Yes No X )
The EASTLAKE DEVELOPMENT COMPANY has requested the City initiate proceedings
under the 1913 Act for an Assessment District to "acquire" certain water,
sewer, and street improvements in the "Hills and Shores" area of the EASTLAKE
development. The EASTLAKE Public Facilities Financing Plan anticipated
Assessment Districts as the secondary method of financing on-site improvements
with Subdivision Map exactions as the primary method, although several changes
in the financing plan have been made including the already approved Assessment
District 85-2. Actually, the original plan was for one assessment district,
but because of timing, it was necessary to split the district into two
districts, 85-2 and 86-1 .
RECOMMENDATION: Adopt resolutions.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable
DISCUSSION:
The City of Chula Vista currently has approved EASTLAKE Assessment District
85-2 to provide on-site water and sewer lines in the EASTLAKE "Business Park,"
a reservoir off-site, water transmission lines, and street improvements on
Otay Lakes Road.
The "Hills and Shores" residential area will participate in Assessment
District 85-2 based on benefit received from the reservoir, pump station, and
water transmission lines while the "Business Park" area will be additionally
assessed for the on-site water/sewer improvements and the Otay Lakes road
improvements that specially benefit that area.
Page 2, Item 15
Meeting Date 5/27/86
Assessment District 85-2 was initiated in November 1985 prior to any final map
approval for either the "Business Park" or the "Hills and Shores." The
developer fronted $3 million to begin construction on the reservoir and pump
station and would have been responsible for all the improvements of 85-2 had
the Council not finally approved the district on May 13, 1986. The Wedin
report "Public Facilities Financing Plan" had originally proposed that the
water-related improvements in District 85-2 be financed by a Mello-Roos tax
district. However, our consultants recommended a 1913 Act procedure instead
due to its proven success for both 85-2 and 86-1 which is the subject of this
resol uti on.
The EASTLAKE DEVELOPMENT COMPANY has requested the City to initiate Assessment
District 86-1 to acquire certain on-site water, sewer and street improvements
in East "H" Street and the loop streets estimated to cost $3.8 million that
specially benefit only the "Hills and Shores" residential areas. One reason
the improvements being proposed for Assessment District 86-1 were not included
in 85-2 was because of the necessity to get the construction underway
immediately to meet the development schedule for the residential community and
assessment district procedural/timing requirements.
One question which may be raised regarding formation of an additional
"Hills district for the Hills and Shores subdivision is the cumulative
financial impact of proposed public financing mechanisms on new home owner in
the "Hills and Shores" development. In addition to Assessment District 85-2,
the Sweetwater and Chula Vista School Districts are considering the use of the
MELLO-ROOS legislation for financing schools. The City has also approved the
formation of a 1972 Act Maintenance District for the maintenance of
landscaping and other appurtenances in the public right-of-way. Although
final special tax and assessment levies are not known at this time, an
analysis of the proposals indicates that special taxes and assessments will
not exceed 1% of the purchase price of the houses in EASTLAKE. Attached is an
example of a "Disclosure Statement" prepared by our consultants that is being
distributed to all prospective home buyers in EASTLAKE. The numbers are
preliminary and will vary depending on the size of the dwelling unit.
The 1913 Assessment Act does allow purchase of the improvements prior to
acceptance by the public agency. Prospective homeowners have already been
advised that this district was proposed.
FISCAL IMPACT: None to the City. The Assessment District provides for all
necessary funding.
WPC 2099E
by the City Council of
Chula Vista, California
Dated , ,2 �1
CERTIFICATE OF COMPLIANCE
WITH NOTICE REQUIREMENTS
ASSESSMENT DISTRICT NO. 86-1
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
JENNIE M. FULASZ, under penalty of perjury, CERTIFIES AS FOLLOWS:
The undersigned is now, and at all times mentioned herein was, the duly appointed,
qualified and acting CITY CLERK of the CITY OF CHULA VISTA, CALIFORNIA, and as such,
accomplished the notice requirements in connection with the referenced Assessment
District, as noted:
RECORDING
A copy of the proposed BOUNDARY MAP was filed in the Office of the County Recorder
within fifteen (15) days after the adoption of the Resolution Adpoting Map; said
filing being accomplished on the 02q4 day of _ na f , 1986.
EXECUTED this 3d day of 1986, at Chula Vista, California.
/hit Al L_IL_Li.._...
PDI� U CITY CLERK "
CITY OF CHULA VISTA
STATE OF CALIFORNIA
COUNCIL AGENDA STATEMENT
Item 15
Meeting Date 5/27/86
ITEM TITLE: a) Resolution making findings on a petition
requesting the acquisition of certain public improvements to
be acquired pursuant to the terms and provisions of the
"Municipal Improvement Act of 1913."
b) Resolution making preliminary appointments and
approving Consulting Agreements, and a Reimbursement Agreement
for the Assessment District proceedings.
c) Resolution /a a3 establishing boundaries for the
proposed Assessment District.
SUBMITTED BY: Director of Public Works/City Engineer #// '
REVIEWED BY: City Manager (4/5ths Vote: Yes No X )
The EASTLAKE DEVELOPMENT COMPANY has requested the City initiate proceedings
under the 1913 Act for an Assessment District to "acquire" certain water,
sewer, and street improvements in the "Hills and Shores" area of the EASTLAKE
development. The EASTLAKE Public Facilities Financing Plan anticipated
Assessment Districts as the secondary method of financing on-site improvements
with Subdivision Map exactions as the primary method, although several changes
in the financing plan have been made including the already approved Assessment
District 85-2. Actually, the original plan was for one assessment district,
but because of timing, it was necessary to split the district into two
districts, 85-2 and 86-1 .
RECOMMENDATION: Adopt resolutions.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable
DISCUSSION:
The City of Chula Vista currently has approved EASTLAKE Assessment District
85-2 to provide on-site water and sewer lines in the EASTLAKE "Business Park,"
a reservoir off-site, water transmission lines, and street improvements on
Otay Lakes Road.
The "Hills and Shores" residential area will participate in Assessment
District 85-2 based on benefit received from the reservoir, pump station, and
water transmission lines while the "Business Park" area will be additionally
assessed for the on-site water/sewer improvements and the Otay Lakes road
improvements that specially benefit that area.
Page 2, Item 15
Meeting Date 5/27/86
Assessment District 85-2 was initiated in November 1985 prior to any final map
approval for either the "Business Park" or the "Hills and Shores." The
developer fronted $3 million to begin construction on the reservoir and pump
station and would have been responsible for all the improvements of 85-2 had
the Council not finally approved the district on May 13, 1986. The Wedin
report "Public Facilities Financing Plan" had originally proposed that the
water-related improvements in District 85-2 be financed by a Mello-Roos tax
district. However, our consultants recommended a 1913 Act procedure instead
due to its proven success for both 85-2 and 86-1 which is the subject of this
resolution.
The EASTLAKE DEVELOPMENT COMPANY has requested the City to initiate Assessment
District 86-1 to acquire certain on-site water, sewer and street improvements
in East "H" Street and the loop streets estimated to cost $3.8 million that
specially benefit only the "Hills and Shores" residential areas. One reason
the improvements being proposed for Assessment District 86-1 were not included
in 85-2 was because of the necessity to get the construction underway
immediately to meet the development schedule for the residential community and
assessment district procedural/timing requirements.
One question which may be raised regarding formation of an additional
"Hills district for the Hills and Shores' subdivision is the cumulative
financial impact of proposed public financing mechanisms on new home owner in
the "Hills and Shores" development. In addition to Assessment District 85-2,
the Sweetwater and Chula Vista School Districts are considering the use of the
MELLO-ROOS legislation for financing schools. The City has also approved the
formation of a 1972 Act Maintenance District for the maintenance of
landscaping and other appurtenances in the public right-of-way. Although
final special tax and assessment levies are not known at this time, an
analysis of the proposals indicates that special taxes and assessments will
not exceed 1% of the purchase price of the houses in EASTLAKE. Attached is an
example of a "Disclosure Statement" prepared by our consultants that is being
distributed to all prospective home buyers in EASTLAKE. The numbers are
preliminary and will vary depending on the size of the dwelling unit.
The 1913 Assessment Act does allow purchase of the improvements prior to
acceptance by the public agency. Prospective homeowners have already been
advised that this district was proposed.
FISCAL IMPACT: None to the City. The Assessment District provides for all
necessary funding.
WPC 2099E
b he City Council of
Chula Vista, California
Dated / ' &'7, 490