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HomeMy WebLinkAboutAgenda Statement 1986/11/25 Item 08COUNCIL AGENDA STATEMENT Item 8 Meeting Date 11/25/86 ITEM TITLE: Resolution %v7 ~'J .~ Declaring City's intention to establish a reimbursement district for construction of street and drainage improvements in Las Flores Drive and "D" Street between Second Avenue and Minot Avenue in the City of Chula Vista, California SUBMITTED BY: Director of Public Works/City Engineer REVIEWED BY: City Manager ~~~~~~ (4/5ths Vote: Yes No X On July 16, 1985, the City Council by Resolution 12102 awarded a contract to R. E. Hazard Contracting Company for construction of street and drainage improvements in Las Flores Drive and "D" Street between Second Avenue and Minot Avenue. The project included the construction of a 20' wide ribbon pavement, storm drain, curb, gutter, sidewalk, sidewalk ramps and masonry retaining wall. Funds for this project were approved in the FY 1984-85 capital improvement program budget with the understanding that the costs for those portions of the improvements installed adjacent to the vacant properties would be reimbursed to the City through a reimbursement district when the land is subdivided and/or developed. Chapter 15.50 of the City Code contains the procedure for the establishment of reimbursement districts which assure that a benefited property owner reimburses another party for the excess cost it incurs when providing public improvements benefiting property other than its own or in excess of its obligation. RECOMMENDATION: That the Council adopt the resolution and set a public hearing to be held at 7:00 p.m. in the Council Chambers on December 16, 1986, in accordance with Section 15.50 of the City Code for the formation of a reimbursement district for the improvements installed in Las Flores Drive and "D" Street between Second Avenue and Minot Avenue. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: City Council on December 18, 1984, approved a report on the improvement of Las Flores Drive and "D" Street between Second Avenue and P1inot Avenue north of "E" Street in which Council: 1. Directed the staff to proceed with the formation of an assessment district covering generally the area north of "D" Street between Second Avenue and Minot. The Council has adopted the proposed boundaries for an assessment district in this area and staff received bids for construction of the improvements on September 17, 1986. At present, the firm of Bement, Dainwood and Sturgeon is preparing the engineer's report and spreading the assessments based on the low bid received for this assessment district. Page 2, Item 8 Meeting Date-TT7~57$6 2. ~,irected staff to call up seven deferrals at the same time as the City prepared to advertise for bids on the staged construction for the improvements of Las Flores Drive south of "D" Street and "D" Street from Second Avenue to Minot Avenue. The property owners with the seven deferrals had their deferred improvements installed by Hazard Contracting Company in conjunction with the contract work. r 3. Establish a reimbursement district for the improvements installed by R. E. Hazard Contracting Company. The Counc i 1 ' s acti ons tonight i s the first step i n the formation of thi s reimbursement district. Attached are drawings showing the proposed boundaries of the district and the proposed assessments against the various parcels. 4. Establish a fund of $125,000 to cover construction costs of those properties with deferrals. This fund has been established and individual contracts were made with the property owners with deferrals and the improvements were installed. After formation of the reimbursement district, formal agreements will be prepared for Council approval with these property owners to pay the City back over the next ten (10) years for the improvements already installed. Chapter 15.50 of the City Code provides the procedure for the formation of reimuursement districts by which a developer (or the City) may recover the costs it incurs when providing public improvements benefiting property other than its own or in excess of its obligation. Engineering staff, therefore, requests that the provisions of Chapter 15.50 be followed and that a reimbursement district be established to assure that the City will recover the $267,125.82 advanced. The attached drawings show the boundary of the district and the estimated reimbursement cost to the City for each parcel therein. Once the allocation of cost has been approved by resolution by the City Council, the City Clerk shall record a copy of the Council's resolution with the County Recorder. The resolution shall include the ownership of record, the legal description, and the amount of charges for each lot or parcel within the district. The reimbursement shall be collectable by the City at either the time the property is to be subdivided or upon a request for a building permit for development of the property. In addition to the cost levied, simple interest in the amount of 7% per year is to be paid to the City up to a period of 20 years. Interest to start from July 1, 1986. FISCAL IMPACT: City will recover $237,229.96 advanced for the installation of the improvements in Las Flores Drive and "D" Street between Second Avenue and Minot. In addition, the City will also be recovering engineering and administrative expenses ($29,895.86) required for construction of the improvements. SLH:nr/ LdPC 2319E the City Council of Chula Vista, California Dated l~- ~'~ ,