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HomeMy WebLinkAboutReso 2004-031 RESOLUTION NO. 2004-031 RESOLUTION OF THIE CITY COUNCIL OF TIIE CITY OF CHUrA VISTA ESTABLISHING A COUNCIL POLICY FOR FORMATION OF ASSESSMENT DISTRICTS WITH CITY PARTICIPATION FOR CONSTRUCTION OF INFILL STREET IMPROVEMENTS AND RESCINDING COUNCIL POLICY 505-01, PARTICIPATION BY TIIE CITY OF CHUrA VISTA IN 1911 BLOCK ACT PROCEEDINGS WHEREAS, the City adopted Council Policy 505-01, Participation by the City of Chula. Vista in 1911 Block Act Proceedings, by Resolution No. 11373 on August 30, 1983; and WHEREAS, since that date the City has formed several Assessment Districts pursuant tç such policy and the provisions of the 1911 Block Act (Chapter 27 of the Improvement Act of 1911) for the purpose of financing a portion of the cost of construction of infill street improvements under this policy and staff has subsequently identified several additional formation issues which require policy clarification, such as the City's position on right-of-way acquisition and the consideration of prior deferral agreements; and WHEREAS, in addition, the process involved in forming Assessment Districts under th~ 1911 Block Act has become more complicated by the passage of Proposition 218, which becam~ effective on July 1, 1997, and which added Article XIIID to the California Constitution an~ which requires the inclusion of assessment ballot proceedings as a part of the assessment district formation process; and WHEREAS, the initiation of proceedings to consider the formation of several new Assessment Districts in Western Chula Vista is anticipated during the next two years and a process is needed which is simpler, less time consuming and more cost effective than the current process utilizing the 1911 Block Act; and WHEREAS, a new policy is needed to allow for the use of the more straightforwar¡J process for forming Assessment Districts included in the Municipal Improvement Act of 1913~ and WHEREAS, there has been presented to the City Council for its review and consideratio$ a new policy, a copy of which is attached as Exhibit A hereto and incorporated herein by thi~ reference, that addresses the issues set forth above. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vist{! does hereby establish a Policy of the City Council in the form attached as Exhibit A hereto fo~ formation of Assessment Districts with City participation for construction of infill street improvements and rescind Council Policy 505-01: Participation by the City of Chula Vista iJi¡ 1911 Block Act Program Proceedings. Resolution 2004-031 Page 2 Presented by Approved as to form by 6.~ Ann Moore City Attorney PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 27th day of January, 2004, by the following vote: AYES: Councilmembers: Davis, McCann, Salas and Padilla NAYS: Councilmembers: Rindone ABSENT: Councilmembers: None ATTEST: L ,/4{~ "XJ~ Susan Bigelow, CMC, City Cle¡¡W STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CHUlA VISTA I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2004-031 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 27th day of January, 2004. Executed this 27th day of January, 2004. ~ EXHIBIT A COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: FORMATION OF ASSESSMENT DISTRICTS WITH CITY PARTICIPATION FOR CONSTRUCTION OF INFILL STREET IMPROVEMENTS BACKGROUND There are many properties within the western area of the City of Chula Vista (particularly in the Montgomery area) that do not have full street improvements. Council adopted Council Policy No. 505-01 by Resolution No. 11373 on August 30,1983 to provide guidelines for the City's financial participation in Assessment District formation under the 1911 Block Act Program. These guidelines addressed certain financial issues, however, over time questions arose regarding district administration that were not addressed by this policy. These issues include the acquisition of right-of-way and the application of deferral payments and agreements made for the construction of street improvements. Additionally, changes in assessment law since 1983 have affected the establishment of these districts. The process of forming Assessment Districts under the 1911 Block Act has become more cumbersome since the passage of Proposition 218. The necessity of treating all properties in a district equitably has lead to reconsideration of the original policy regarding undeveloped lots and industriall commercial lots. Finally, the City has recently established a new program for the financing of infill street improvements in the Montgomery area called the CDBG Street Rehabilitation Program. Under this program, the City will finance all construction and design costs for infill street improvements except for the construction of driveway aprons. Since it is expected that several Assessment Districts will be formed under this program, it was considered advisable to reconsider the City's policy at this time. PURPOSE To establish a new City policy and rescind the current City policy on establishment of Assessment Districts for the construction of infill street improvements. POLICY The City Council establishes the following policy for City participation in the establishment of Assessment Districts for the construction of infill street improvements: I. General Procedure: a. Assessment Districts for the construction of infill street improvements will be formed with the participation of the City using either the Improvement Act of 1911 as enacted and amended in the California Streets and Highways Code (particularly Chapter 27 thereof, commonly referred to as 'The Block Act") or the Municipal Improvement Act of 1913 (Division 12 of the California Streets and Highways Code) as amended by City ordinances. The assessment balloting process shall be conducted in accordance with Chapter XIIID of the California Constitution (Proposition 218) or applicable State law. b. Where a minimal number of property owners in a block have infill street improvements and it would be impractical to form an Assessment District, Council may authorize the City to enter into a reimbursement agreement with an individual property owner for the financing of the property owner's share of construction costs. Said agreement shall be for a maximum of ten years at an interest rate to be determined by Council. 2. District Composition: a. A District is comprised of both sides of a public street between two intersections, where both sides of the public street do not have full improvements (including curbs, gutters and sidewalks). A public street shall be defined as right-of-way dedicated to and accepted by the City as a public roadway, or dedicated to another public agency as a public roadway and acquired by the City, which provides primary access to adjoining properties. b. Where full improvements have already been constructed on one side of a public street, a District will be comprised of that side of such public street between intersections on which full improvements have not been constructed. c. At the option of Council and if property owners indicate such an interest, the District may include additional contiguous blocks in the District in conformance with 2a. and 2b. above. d. City participation in District formation in areas with a primary land use designation as commercial and/or industrial shall be limited to the overlay or reconstruction of existing roadway travel areas, with the exception of occasional commercial properties (such as corner lots) located in areas primarily classified as residential. In the latter instance, such commercial properties shall be treated in the same way as adjoining residential properties. e. The City shall not participate in the formation of a District for a block which is primarily undeveloped. Where isolated undeveloped properties are located in a block which is otherwise developed, the City will provide the same benefits provided to developed lots if agreement can be reached with the owner of such undeveloped property which will include the location and width of driveways. If agreement is not reached, the City shall construct pavement to the width where the curb and gutter would have been constructed, but install an asphalt berm in place of curb, gutter and sidewalk. f. The City shall not participate in District formation for improvements to private streets. 2 I ----_J g. The City's financial participation in District formation for improvements to public alleys shall be limited to utility relocation, replacement of existing improvements and all engineering, inspection and administrative services. Public alleys are defined as right-of-way dedicated to or accepted by the City as a public roadway, or dedicated to another public agency and acquired by the City, which generally provides secondary access to the adjoining properties along the sides or rear of such properties. 3, Right of Wav Issues: a. It is desirable for the City to have the standard 56 feet of right of way width for construction of full street improvements on both sides of a two- way street; however, at the sole discretion of the City Manager (or designee), the acceptable right of way width for construction of street improvements may be reduced on a project-by-project basis to a minimum of 46 feet. b. If existing street right is less than 46 feet, right of way acquisition will be required. Property owners within the proposed District boundaries must unanimously agree to dedicate sufficient right of way to meet this requirement to the City at no cost to the City in order for District formation to proceed. The City will not pay for right of way acquisition or undertake condemnation proceedings under this policy. 4. Deferrals Property owners who construct improvements on their properties above a specific value are required to construct infill street improvements. They may apply for a deferral on constructing such improvements based on the existing conditions of the surrounding area. If the deferral application is approved, the property owner must sign an agreement with the City which is secured through either a lien on the property or by payment of a cash deposit. a. If the deferral is secured by a lien, the lien or portion of the lien associated with the deferral of construction of infill street improvements to be installed and financed through an Assessment District will be released after formation of such District including such property has been accepted as complete by the City Council and/ or City Manager. This property will be assessed for the special benefit received by such property from the improvements to be financed through the new District in accordance with applicable sections of the California Streets and Highways Code. b. If the deferral is secured by a cash bond covering the cost of curb, gutter and sidewalk, such bond plus the interest that has or should have accumulated since the date of payment will be applied as a credit to be subtracted from the portion of District costs allocated to the property. This will only apply to the amount paid to cover the cost of the portion of the public street or public alley to be installed and financed through the District. 3 c. After formation of the District and construction of all facilities is complete, it will be determined if the current owners of the properties with cash bond deferrals are eligible to receive refunds. The portion of the cash bond associated with infill improvements for the street or alley installed and financed through the District will be determined and added to the interest which the City has or would have earned on this amount from the quarter when the deposit was made to the quarter when the construction contract was awarded. The amount payable by the property owner under the District will be subtracted from the cash bond plus interest. If the resulting difference is positive, such difference shall be refunded to the property owners. d, Should the provisions of Section 4, Deferrals, conflict with the provisions of a Deferral Agreement properly executed by the City designee and the property owner prior to approval of this Council Policy, the Deferral Agreement will govern. 5. CDBG Financing: It is anticipated that additional funding for the construction of infill street improvements in the Montgomery area will be available if a low interest loan is received under the Community Development Block Grant (CDBG) Section 108 Program. Under this program, the previous provisions of this policy will apply in addition to the following additions/ exceptions: a, Only public streets in developed residential areas will be eligible for this additional CDBG funding. Alleys will not be eligible. b. The following costs will be paid by the City: rehabilitation of the existing roadway; additional roadway pavement; curb, gutter and sidewalk; relocation of existing utilities, design, inspection and administrative costs; repair or replacement of existing damaged improvements outside the existing road right of way. Right of way acquisition costs are not included. c, The following costs will be paid by the property owners: paved driveway aprons and repair or replacement of existing private improvements encroaching on the existing road right of way. J:\ENGINEERIDESIGN\STL294\ASSESSMENT DISTRICT COUNCIL POLICY a 1I15/2004 8:38 AM 4