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HomeMy WebLinkAboutReso 1990-15897 RESOLUTION NO. 15897 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA IMPOSING AN ORIGINATION CHARGE RELATING TO ASSESSMENT DISTRICT PROCEEDINGS AND ADOPTING A CITY POLICY FOR THE IMPLEMENTATION OF SAME The City Council of the City of Chula Vista does hereby resolve as follows: WHEREAS, a public hearing was set for Council to consider an origination charge of 1% for the use of assessment district financing; and WHEREAS, a policy relating to this origination charge assessment districts and Ordinance No. 2397 is also being considered by Council. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby impose a charge of 1% of the estimated bond issue associated with the assessment district for the use of developer-initiated assessment district financing. BE IT FURTHER RESOLVED that the Master Fee Schedule shall be amended to reflect this charge. BE IT FURTHER RESOLVED that the City Council hereby adopt a City Policy relating to assessment district proceedings, as set forth in Exhibit "A", attached hereto and incorporated herein by reference as if set forth in full. Presented by . ~ ~~s~C fo b~~ Resolution N0. 15897 C O U N C I L P O L I C Y Page 2 city of Chula Vista Policy Effective Subject Number Date Early Liening Assessment October Procedure and Origination 9, 1990 Charge Policy Adopted by Resolution No. 15897 Dated: October 9, 1990 BackGround: 1. The City Council adopted Ordinance No. 2397 ("Chula Vista Version Of the 1913 Act") which modified the State version of the 1913 Act to permit the City to lien assessments against subject property prior to the completion of the infrastructure improvements ("Early Liening Procedure"). 2. On October 9, 1990, the City Council, at a public hearing, authorized the imposition of a 1% Origination Charge imposed on all assessment district proceedings in which the City engages. Purpose: 1. It is necessary to establish a policy to guide staff in implementing said Ordinance No. 2397, and the use of the Early Liening Procedure permitted therein. 2. It is necessary to establish a policy to guide staff in imposing said Origination Charge recognizing that the Origination Charge is an acknowledgment of the City allowing the use of its bonding capability. POLICY Re: Use of Chula Vista Version of the 1913 Act. 1. Assessment districts financing should only be used. to finance the cost of "backbone" infrastructure. "Backbone" infrastructure, shall, for the purposes of this policy, mean infrastructure improvements that are of a general, overall benefit to the entire properties which are, or will be, the subject matter of the entire district. By way of example, such items shall include: A. Arterial and collector streets B. Transmission-type utility facilities. Resolution No. 15897 Page 3 It shall not include local property access roads within residential subdivisions, and shall not include distribution utility facilities such as water and sewer laterals and local distribution mains. 2. Deposit to Cover Estimate of Staff Costs. In any developer-initiated assessment district proceeding, the developer shall deposit with the City a sum of money ("Processing Deposit") which the Director of Public Works shall reasonably determine represents the approximate cost to which the City will be put, including all staff time, out-of-pocket expenses, overhead, consultant expenses, in processing the developer's application for special assessment district financing. Re: Use of the EarlV Lienin~ Procedure. 1. When Early Liening Procedure is to be Used. Special Assessment District financing shall permit the use of the Early Liening Procedure in those cases where the backbone infrastructure would not otherwise be completed without such procedure prior to the time that the houses will be initially marketed. The purpose of this policy is to give full disclosure of all financing costs to the initial home-buyer prior to purchase of the property. 2. Contingency Permitted to be Financed. Since the assessments to benefitted land would be levied prior to the completion of construction, a contingency amount, not to exceed ten percent (10%) of the estimated costs of the uncon- structed improvements may be allowed to be financed and made a part of the assessed amount. 3. Developer Agreement to Absorb Excess Costs. The developer must enter into an agreement which provides that, if the costs of construction of the subject infrastructure improvements exceed the amount of the financing made available by the sale of bonds (including such contingency as may be permitted by this Policy), the Developer shall be responsible for, and shall, absorb the excess costs. 4. Assessments to be Adjusted to Reflect Cost Savings. If the final project costs are less than the estimated cost plus contingency, the assessments shall be adjusted downward. The costs associated with adjusting assessments shall be borne by the developer, and he shall enter into an agreement to this effect. Resolution No. 15897 Page 4 2. Payment for Improvements. Regardless of the use of the Early Liening Procedure, payment for improvements under an Acquisition and Financing Agreement shall not be made until all improvements which were the subject of the proceedings are completed and accepted by the City, and the assessment engineer has certified the final cost thereof. Re: Imposition of 1% Oriqination Charge. 1. The Origination Charge imposed by Resolution No. 15897 should be charged in special assessment districts formed at the request of private Developers for development consisting of more than 4 lots. 2. Said Origination Charge shall be paid not later than the date set for the public hearing on the decision to form the special assessment district. If the special assessment district is not formed through no fault of the developer/applicant, that portion of the Origination Charge and Processing Deposit beyond unreimbursed costs to the City incurred in connection with the proceedings shall be returned. 3. The Origination Charge shall not be financed out of the proceeds of any assessment district bonds subsequently issued for the public facilities. The Charge paid to the City shall not be included in the assessment district costs. 4. The proceeds from all Origination Charges shall be deposited into the General Fund of the City. Resolution No. 15897 Page 5 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 9th day of October, 1990 by the following vote: AYES: Councilmembers: McCandliss, Moore, Nader, Cox NOES: Councilmembers: None ABSENT: Councilmembers: Malcolm ABSTAIN: Councilmembers: None Gre~lf~R. Cox, M yor ATTEST: - , ~ ., ? ,~ 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. 15897 was duly passed, approved, and adopted by the City Council of the City of Chula Vista, California, at a regular meeting of said City Council held on the 9th day of October, 1990. Executed this 9th day of October, 1990. Beverly A<. Authelet, City Clerk