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HomeMy WebLinkAboutOrd 2001-2829 ORDINANCE NO. 2829 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, ESTABLISHING THE SAN MIGUEL RANCH FISCAL DEFICIT ACCOUNT, REQUIRING NNP-TRIMARK SAN MIGUEL, LLC, TO DEPOSIT AN INITIAL $10,000 INTO SAID ACCOUNT PRIOR TO ANNEXATION, AND REQUIRING NNP-TRIMARK SAN MIGUEL, LLC, PRIOR TO APPROVAL OF ANY FINAL SUBDIVISION MAP FOR THE PROJECT, TO ESTABLISH AND FUND A PERMANENT MECHANISM TO PAY THE CITY FOR FINANCING THE PREPARATION OF 15 ANNUAL FISCAL REVIEWS AND DEFICIT ANALYSES FOR THE SAN MIGUEL RANCH PROJECT, AND FOR ANY FISCAL DEFICITS IDENTIFIED BY THE ANNUAL REVIEWS AND ANALYSES WHEREAS, the San Miguel Ranch Sectional Planning Area (SPA) Plan and Public Facilities Financing Plan/Fiscal Impact Analysis (PFFP/FIA) were approved by the City Council on October 19, 1999, by Resolution No. 19631; and WHEREAS, the PFFP/FIA identified that the San Miguel Ranch Project would operate at an annual net fiscal deficit to the City; and WHEREAS, Condition No. 22 of Resolution 19631 required the project applicant to establish a mechanism to mitigate that deficit to the City's satisfaction prior to annexation of the project site; and WHEREAS, on February 29, 2000, the City Council approved a Master Tentative Subdivision Map for the San Miguel Ranch project by Resolution No. 2000-068; and WHEREAS, Condition Nos. 95a. & 95b. of Resolution No. 2000-068 further specified the applicant's responsibility to establish an account to finance the preparation of annual fiscal reviews and deficit analyses for the project, and to establish a permanent mechanism, prior to approval of the first Final Map within the project, to pay the City for the ongoing preparation of the annual reviews, and for any fiscal deficits identified by the annual reviews; and WHEREAS, on April 3, 2000, the San Diego Local Agency Formation Commission (LAFCO) adopted a Resolution (Ref. No. RO99-42) approving the San Miguel Ranch Reorganization subject to conditions, one of which reads "Pursuant to conditions regarding a foretasted axmual fiscal deficit, contained in the SPA and Tentative Map, the property owner will establish and fund a mitigating mechanism to the City's satisfaction"; and WHEREAS, the City, as LAFCO's designated conducting authority, is ready to consider the San Miguel Reorganization and to order the changes of organization pursuant to LAFCO's Resolution; and WHEREAS, in accordance with the City's noted conditions of approval in Resolution Nos. 19631, and LAFCO's noted condition of approval, it is now necessary to establish and fund a mitigating mechanism; and WHEREAS, Exhibit 2 attached hereto is an excerpt from the San Miguel Ranch PFFP/FIA and generally describes the forecasted annual fiscal deficit; and Ordinance 2829 Page 2 WI-IEREAS, Exhibit 3 attached hereto identifies potential accounting alternatives for ensuring payment to the City for any fiscal deficits resulting from the project, and which will be used to establish a permanent accounting mechanism prior to approval of the first Final Map within the project; and WHEREAS, the Environn~ental Review Coordinator has determined, pursuant to Section 15162 of the CEQA Guidelines, that the actions proposed in this ordinance are in substantial conformance with the project analyzed in FSEIR-97-02 which was certified by the City Council on October 19, 1999, and that no further action is necessary. NOW, THEREFORE, the City Council of the City of Chula Vista does ordain as follows: SECTION 1. Territory to Which Annual Fiscal Review and Deficit Analysis is Applicable. The area to which the San Miguel Ranch amtual fiscal analysis fimding herein established and which will be established prior to approval of the first Final Map shall be applicable to the project area defined in the SPA Plan and PFFP/FIA adopted by the City Council on October 19, 1999, and reflected on Exhibit 1 attached hereto. SECTION 2. Purpose. In accordance with applicable conditions of City Council Resolutions 19631, the purpose of this ordinance is to establish and fund a mechanism to mitigate the deficit for the San Miguel Ranch project. SECTION 3. Establishment and Funding Requirements of the San Miguel Ranch Fiscal Deficit Account, and Authority for Accounting and Expenditures The project applicant, NNP-Trimark San Miguel, LLC, shall, prior to final recordation of the San Miguel Ranch Reorganization, deposit an initial $10,000.00 dollars into an account with the City, which is hereby created. The applicant, or their successors and assigns in-interest shall initially and at all times maintain a minimum balance of $10,000.00 in the Account. Prior to approval of the first Final Map within the project, and subject to the approval of the City, the applicant shall establish and fund a permanent mechanism to satisfy the applicant's responsibility for funding preparation of the 15 annual reviews, and for payment of the project's fiscal deficits identified by those reviews. Such permanent mechanism may include payment of a one-time fee, a fee to be paid with each building permit, or other method acceptable to the City. Associated monies shall be placed into the above created Account. The Director of Finance is authorized to periodically make expenditures from the Account for the purposes set forth herein. Expenditures from the Account and any interest eamed thereon shall be accounted for separately from other City accounts. SECTION 4. Requirements for Conducting Annual Fiscal Reviews and Deficit Analyses The Account shall be used for the purpose of accounting 15 annual reviews of the project's fiscal operation deficits, to be conducted by the City or its consultants to evaluate the Ordinance 2829 Page 3 fiscal impact of the project on the City. These annual reviews shall be similar in nature to those used in the project's adopted PFFP/FIA, using factors deemed relevant by the City manager. The reviews shall contain such information so as to enable the City to ensure that all City services provided to the project including direct and indirect costs, as well as capital and operating costs, are covered by project revenues and project exactions. The first annual review shall be for fiscal year 2001/2002, and annual reviews shall continue through fiscal year 2015/2016. The reviews shall be completed within 180 days of the end of each fiscal year. SECTION 5. Requirements for Mitigating Fiscal Deficits Identified by the Annual Reviews The applicant or their successors and assigns in-interest shall be responsible for paying the City for any fiscal deficits identified by the annual reviews through establishment of a permanent funding mechanism. SECTION 6. Expiration of This Ordinance This ordinance shall be of no further force and effect when the City Council determines that the accounts are no longer needed for the purposes stated herein. SECTION 7. Effective Date This ordinance shall become effective thirty days after its second reading and adoption, Presented by Approved as to form by Ordinance 2829 Page 4 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 9m day of January, 2001, by the following vote: AYES: Councilmembers: Davis, Padilla, Rindone, Salas and Horton NAYS: Counci lmembers: None ABSENT: Councilmembers: None / Shirley Horto~vlayor ATTEST: Susan Bigelow, City Clerk 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 Ordinance No. 2829 had its first reading at a regular meeting held on the 19th day of December, 2001 and its second reading and adoption at a regular meeting of said City Council held on the 9th day of January, 2001. Executed this 9th day of January, 2001. ._"?~_XJ- d-t--.~'~Tj~.-~ Su'ii'Bigelow, City Clerk