Loading...
HomeMy WebLinkAboutReso 1991-16367 RESOLUTION NO. 16367 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA MODIFYING RESOLUTION 15897 BY REVISING PROCEDURE FOR PAYMENT OF ASSESSMENT DISTRICT BOND PROCEEDS TO DEVELOPERS FOR ACQUISITION OF PUBLIC FACILITIES The City Council of the City of Chula Vista does hereby resolve as follows: WHEREAS, on October 9, 1990, Council approved Resolution 15897 adopting City Policy relating to Assessment District proceedings to provide a procedure to form a District and sell Bonds, prior to the actual completion of improvements; and, WHEREAS, the justification for this was to have the districts formed early enough so that prospective home buyers would know that they will be in an assessment district prior to buying their home; and, WHEREAS, prior to this policy change, and subsequent State law change, the City could not have the hearing for the district until all improvements were completed and ready for acceptance by the City; and, WHEREAS, Page 3 of the Policy states "payment for improvements under the 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"; and, WHEREAS, the Director of Public Works is recommending modifying that condition to allow payment from bond proceeds as each project in the district is completed, accepted by the City and the costs are certified by the Assessment Engineer. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby modify Resolution 15897 by revising procedure for payment of Assessment District Bond Proceeds to Developers for Acquisition of Public Facilities as set forth in Exhibit "A", attached hereto and incorporated herein by reference as if set forth in full. Presented by ~~d ~to f by . Jo~n P. Lippitt Bruce M. Boogaar ' A Director of Public Works C~ty ttorney Resolution No. 16367 Page 2 ADOrat. u BY: Resolution No. 16367 DAT~ 10-08-91 BACKGROUND 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 LieRing Procedure"). On October 9, 19900 the City Council, at a public hearing, authorized the impesitiom of a it Origination Charge imposed on all assessment district proceedings ~ which the City engages. It ~s necessary to establish a policy to guide staff in implementing said Ordinance No. 2397, and the use of the Early LieRing Procedure permitted therein. It is necessary to establish a policy to guide staff in imposing said Origtnation Charge recognizing that the origtnation charge ts an acknowledgment of the City allowing the use of its bonding capability. POLICY R~: 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 ere 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 It shall not include local property access roads within rusidential subdivisions. ~d shall ~ot inclmle distribution utility facilities such as water aAd se~er laterals &rid local dtstrilmttoa lairs. Resolution No. 16367 Page 3 COUNCIL POLICY La'l-'~ OF (]-IULA VISTA EARLY LIENING ASSESSMENT PROCEDURE NI,1M]SE]~ DA'II~ PAGE AND ORIGINATION CHARGE POLICY 505-02 10-08-91 2 of 3 ADOrI~.2~BY: Resolution No. 15367 10-08-91 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 (sPrucessin9 Depostt*) which the Director of Public Works shall reasonably determine represents the approximate cost to which the City will be put, tncludin~ all staff time, out-of-pocket expenses, overhead, consultant expenses, in processin9 the developer*s application for special assessment district RE: Use of the Early Lieninq Procedure. 1. When Early Lienin9 Procedure is to be Used. Special Assessment District financin9 shall permit the use of the Early Lienin9 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 financin9 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 completioo of construction, a contingency amount, not to exceed ten percent (10~) of the estimated costs of the unconstructed improvements may be allowed to be financed and made a part of the assessed amount, 3. Developer Agreement to Absurd Excess Costs. The developer must enter into an agreement which provides that, costs of the subject infrastructure improvements exceed the amount of the financing made available by the sale of bonds (includin9 such contingency as may be permitted by this Policy), the Developer shah be responsible for, and shall, absurd the excess costs. 4. Assessments to be Adjusted to Reflect Cost Savings. If the final pro3ect costs are less than the estimated cost plus contingency, the assessments shall be adjusted downward. The costs associated with adjustin9 assessments shah be borne by the Developer, and he shah enter into an agreement to this effect. Resolution No. 16367 Page 4 ' (X)UNCILPC)IJC~ UfI'~ OF CHULAVISTA SUK/ECT IN3/.JCI'* ~maVE EARLY LIENING ASSESSMENT PROCEDURE NtTMBER DATE AND ORIGINATION CHARGE POLICY 505-02 10-08-91. 3 of 3 AD0ri~_jjBY: Resolution No. 16367 DAT~: 10-08-91 5. Payment for Improvements. Regardless of the use of the Early Ltentng Procedure, payment for improvements under an Acquisition and Financing Agreement shall not be made until all improvements for a particular project, as determinedby the Director of Public works, are completed and accepted by the City, and the assessment engineer has certified the final cost thereof. A project shall be defined as all improvements within a particular street or easement including street improvements, sewer, drainage, and uttlttes. If mere than one project is being financed by one district, as defined and approved by the Director of Public Works, then parira1 relaease of funds can occur, as each project is completed. Any deviation of project definition shall be' approved by the Director of Public Works, For example, payment for a sewer in a futur~ road right-of-way, which road is not finance by the subject district, would probably be approved by the Director. RE: lsl~ositton of l~ Oriqination Charqe. 1. The Originatton Charge imposed by Resolution No. 15897 should be charged in special assessment districts formed at the request of private Developers for development consisting of mare 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 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 Originatton Charges shall be deposited into the General Fund of the City. ORIGINAL RESOLUTION AIX)PTING THIS POLICY MAS: 15897 APPROVE]) 10-09-90. Resolution No. 16367 Page 5 PASSED, APPROVED and ADOPTED by the City Council of the City of Chula Vista, California, this 8th day of October, lggl, by the following vote: YES: Councilmembers: Grasser Horton, Moore, Nader, Rindone NOES: Councilmember: None ABSENT: Councilmembers: Malcolm ABSTAIN: Councilmembers: None Tim Nader, Mayor ATTEST: ~Au(helet, 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. 16367 was duly passed, approved, and adopted by the City Council held on the 8th day of October, 1991. Executed this 8th day of October, 1991. Beve~th~let, City Clerk