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HomeMy WebLinkAbout21110 - RESOLUTIONS - 10/6/2004RESOLUTION NO. 21110 ' OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA DECLARING ITS INTENTION TO FORM A 1913 ACT ASSESSMENT DISTRICT, USING 1915 ACT BONDS TO MAKE ACQUISITIONS OF CERTAIN ELIGIBLE PUBLIC IMPROVEMENTS, AND DIRECTING THE PREPARATION OF A PRELIMINARY ENGINEER'S REPORT FOR MOUNTAIN GATE II TRACTS 32028 AND 32028-1 BY MOUNTAIN GATE. II PALM SPRINGS VENTURES, LLC; ASSESSMENT DISTRICT NO. 164. WHEREAS, on January 22, 1992, the City Council of the City of Palm Springs adopted Resolution No. 17774 adopting Policies and Procedures for Special District Municipal Bond Financing (the "City Policies") for certain public improvements for City and private development projects, under the 1911, 1913, 1915 Acts and 1972 Community Facilities District Act; and WHEREAS, on April 3, 2002, the City Council of the City of Palm Springs adopted Resolution No. 20304, which amends Resolution No. 17774, to allow municipal bond financing for single family subdivisions; and specifying a 2-percent maximum Special Tax per property, including the general property tax; requiring a District Application Form; establishing a $10,000 Application Fee, for developers to pay for City staff costs for the ' district formation process; and approved a Disclosure Statement form to be signed by each prospective home buyer within the district to disclose all district costs and declare that municipal bonds would be issued which would cause an assessment to be placed on each property owner's tax bill for a period of years, including a covenant that runs with the land in all title reports, and WHEREAS, Mountain Gate II Palm Springs Ventures, LLC, a Delaware limited liability company and an experienced land developer (the "Developer'), wishes to construct the "Mountain Gate II" development (Tracts 32028 and 32028-1) and is in compliance with Resolutions No. 17774 and 20304 and has completed the required District Application Form and paid the required $10,000 Application Fee with intent to construct a 201 Unit single family home subdivision located at the southwest corner of Palm Canyon Drive, to the west of the existing Mountain Gate Project in the City of Palm Springs, using Municipal Bond financing for certain eligible public improvements for Tracts 32028 and 32028-1; and WHEREAS, Developer has completed the required District Application Form and paid the required $10,000 Application Fee, and the District Application requests formation of an assessment district ("Assessment District 164") with a total assessment amount of $3,806,000 which is above the minimum assessment amount of $2,000,000 established by the City's Policies; and WHEREAS, the City Council considered the District Application and the Special Districts Committee's recommendations for further consideration and processing of ' Assessment District 164 at its July 28, 2004, meeting, and authorized staff to proceed with the formation of Assessment District 164; and WHEREAS, City staff have entered into a contract services agreementwith Albert A. Webb Associates to serve as the City's Assessment Engineer for Assessment District 164, and it has prepared a Preliminary Engineer's Report (the "Engineers Report") for consideration of the formation of Assessment District 164. Resolution 21110 Page 2 NOW, THEREFORE, BE IT RESOLVED, as follows: ' 1. Intention. The public interest, convenience and necessity require, and this City Council intends to order the making of the construction of certain public improvements, together with the acquisition of all easements, rights -of -way, and lands necessary therefor described in Exhibit "A" attached hereto and made a part hereof. 2. Law Applicable. Except as herein otherwise provided for the issuance of bonds, all of the work shall be done as provided in the Municipal Improvement Act of 1913, Division 12 of the Streets and Highways Code of California (the "Code"). 3. Nature and Location of and Grades for Improvements. All of the work and improvements are to be constructed at the places and in the particular locations, of the forms, sizes, dimensions and materials, and at the lines, grades and elevations, as shown and delineated upon the plans, profiles and specifications to be made therefor, as hereinafter provided. There is to be excepted from the work above described any of such work already done to line and grade and marked excepted or shown not to be done on the plans, profiles and specifications. Whenever any public way is herein referred to as running between two public ways, or from or to any public way, the intersections of the public ways referred to are included to the extent that work is shown on the plans to be done therein. The streets and highways are or will be more particularly shown in the records in the office of the County Recorder of the County of Riverside, State of California, and shall be shown upon the plans. For a general description of the area to be included in Assessment District No. 164 of the City of Palm Springs, reference is hereby made to a map which is on file with the City Clerk. 4. Change of Grade. Notice is hereby given of the fact that in many cases the work and improvements will bring the finished work to a grade different from that formerly existing, and that to the extent the grades are hereby changed, the work will be done to the changed grades. 5. Work on Private Property. In cases where there is any disparity in level or size between the improvements proposed to be made herein and private property and where it is more economical to eliminate such disparity by work on the private property than by adjustment of the work on public property, it is hereby determined that it is in the public interest and more economical to do such work on private property to eliminate such disparity. In such cases, the work on private property shall, with the written consent of the owner of the property, be done and the actual cost thereof may be added to the proposed assessment of the lot on which the work is to be done. 6. Official Grades. This Council does hereby adopt and establish as the official grades for the work the grades and elevations to be shown upon the plans, profiles and specifications. All such grades and elevations are to be in feet and decimals thereof with reference to the datum plane of this City. 7. Descriptions - General. The descriptions of the acquisitions and improvements and the termini of the work contained in this Resolution are general in nature. All items of work do not necessarily extend for the full length of the description thereof. The plans and profiles of the work and maps and descriptions as contained in the Engineer's Report, hereinafter directed to be made and filed, shall be controlling as to the correct and detailed description thereof. Resolution 21110 Page 3 8. Special Benefit and Boundary Map. The contemplated acquisitions and improvements, in the opinion of this Council, are of more than local or ordinary public benefit, and the costs and expenses thereof are made chargeable upon an assessment district, the exterior boundaries of which are shown on a map thereof on file in the office of the City Clerk, to which reference is hereby made for further particulars. The map indicates by a boundary line the extent of the territory included in the proposed district and shall govern for all details as to the extent of the assessment district. 9. Filinq of Boundary Map. The City Clerk is directed to file a copy of the Boundary Map with the County Recorder not later than 15 days after the adoption of the Resolution setting a time and place for a public hearing on the Engineer's Report. 10. Engineer's Report. Albert A. Webb Associates is the Engineer for this Assessment District (the "Engineer of Work"), and the Engineer of Work is hereby directed to make and file with the City Clerk a final Engineer's Report in writing, presenting the following: (a) Maps and descriptions of the lands and easements to be acquired, if any; (b) Plans and specifications of the proposed improvement if the improvements are not already installed. The plans and specifications do not need to be detailed and are sufficient if they show or describe the general nature, location, and extent of the improvements. If the assessment district is divided into zones, the plans and specifications shall indicate the class and the type of improvements to be provided for each zone. The plans or specifications may be prepared as separate documents, or either or both may be incorporated in the Engineer's Report as a combined document. (c) A general description of works or appliances already installed and any other property necessary or convenient for the operation of the improvements, if the works, appliances, or property are to be acquired as part of the improvements. (d) An estimate of the cost of the improvements and of the cost of lands, rights -of -way, easements, and incidental expenses in connection with the improvements, including any cost of registering bonds. (e) A diagram showing, as they existed at the time of the passage of this Resolution, all of the following: (1) The exterior boundaries of the assessment district. (2) The boundaries of any zones within the district. (3) The lines and dimensions of each parcel of land within the district. Each subdivision, shall be given a separate number upon the diagram. The ' diagram may refer to the county assessor's maps for a detailed description of the lines and dimensions of any parcels, in which case those maps shall govern for all details concerning the lines and dimensions of the parcels. Resolution 21110 Page 4 (f) A proposed assessment of the total amount of the cost and expenses of ' the proposed improvement upon the several subdivisions of land in the district in proportion to the estimated benefits to be received by each subdivision, respectively, from the improvement. In the case of an assessment for installation of planned local drainage facilities which are financed, in whole or in part, pursuant to Section 66483 of the California Government Code, the assessment levied against each parcel of subdivided land may be levied on the basis of the proportionate storm water runoff from each parcel. The assessment shall refer to the subdivisions by their respective numbers as assigned pursuant to subdivision (e). (g) A proposed maximum annual assessment upon each of the several subdivisions of land in the district to pay costs incurred by this City and not otherwise reimbursed which result from the administration and collection of assessments or from the administration or registration of any associated bonds and reserve or other related funds. (h) Included in the incidental expenses to be assessed against properties located within Assessment District No. 164 shall be the following: (i) A special reserve fund far the bonds to be issued (as setforth in Section 11 below), which fund is to be established pursuant to Part 16 of Division 10 of the Code, Sections 8880 et seq., in an amount not to exceed ten percent (10%) of the proceeds of said bonds. (ii) Capitalized interest on said bonds for a period of not to exceed two years from their date of issue. (iii) Initial fees of a trustee for said bonds to be selected by the Director of Finance of the City. When any portion or percentage of the costs and expenses of the acquisitions and improvements is to be paid from sources other than assessments, the amount of such portion or percentage shall first be deducted from the total estimated cost and expenses of the acquisitions and improvements, and the assessment shall include only the remainder of the estimated cost and expenses. 11. Issuance of Bonds. Serial bonds or term bonds, or both, (the "Bonds") bearing interest at a rate not to exceed twelve percent (12%) per annum shall be issued to represent each assessment remaining unpaid for thirty (30) days after the date of recordation of the Notice of Assessment. The last installment of the bonds shall mature a maximum of twenty- five (25) years from the second day of September next succeeding twelve (12) months from their date. The bonds are as authorized under the Code, and are to be issued pursuant to and as provided in the Improvement Bond Act of 1915, Division 10 of the Code. The principal amount of bonds maturing, or subject to mandatory redemption from sinking fund installments in the case of term bonds, each year shall be such that the amount of principal maturing each year plus the amount of interest payable in that year will be an aggregate amount that is substantially equal each year, except for the amounts becoming due on the first series of the bonds of any division which shall be adjusted to reflect the amounts of interest earned from the date of the bonds to the date when the first interest is payable on such bonds. The bonds may be issued in divisions as permitted by Section 8650.1 of the Code. Resolution 21110 Page s 1 12. No Obligation to Cure Deficiencies. In the event of any deficiency in the bond redemption fund to be established hereafter in these proceedings, the District will not be obligated to advance available funds from the District treasury to cure any such deficiency. 13. Use of Surplus. If any excess shall be realized from the assessment it shall be used, in such amounts as this Council may determine, in accordance with the provisions of the Code, for one or more of the following purposes. (a) Transfer to the general fund of this City, provided that the amount of any such transfer shall not exceed the lesser of $1,000 or 5% of the total amount expended from the improvement fund; (b) Asa credit upon the assessment and any supplemental assessment or for the redemption of bonds, or both; or (c) For the maintenance of the improvements. 14 Contact Person. Thomas M. Kanarr, Director of Finance and Treasurer of the City, is hereby designated as the person to answer inquiries regarding any protest proceedings to be had herein, and may be contacted during regular office hours at 3200 E. Tahquitz Canyon Way, Palm Springs, CA 92262, or by calling telephone number (760) 323- 8221. 15, Contracts with Others. To the extent that any of the work, rights, improvements and acquisitions indicated in the Engineer's Report, to be made as provided herein, are shown to be connected to the facilities, works or systems of, or are to be owned, managed and controlled by, any public agency other than this City, or of any public utility, it is the intention of this Council to enter into an agreement with such public agency or public utility pursuant to Chapter 2 (commencing with Section 10100) of the Code, which agreement may provide for, among other matters, the ownership, operation and maintenance by such agency or utility of the works, rights, improvements and acquisitions, and may provide for the installation of all or a portion of such improvements by the agency or utility and for the providing of service to the properties in the area benefiting from the work, rights, improvements and acquisitions by such agency or utility in accordance with its rates, rules and regulations, and that such agreement shall become effective after proceedings have been taken for the levy of the assessments and sale of bonds and funds are available to carry out the terms of any such agreement. 16. Refunding of Bonds. The bonds may be refunded pursuantto the provisions of Division 11.5 of the Code upon the determination of the Council of the City that the public interest or necessity requires such refunding. Such refunding may be undertaken by the Council when, in its opinion, lower prevailing interest rates may allow reduction in amount of the installments of principal and Interest upon the assessments given to owners of property assessed for the works herein described. The refunding bonds shall bear interest at a rate not to exceed that which is stated in the resolution of the Council expressing its intention to issue the refunding bonds, which resolution of intention shall also set forth the maximum term of years of the refunding bonds. Any adjustment to assessments resulting from the refunding will be done on a pro-rata basis. The refunding shall be accomplished pursuant to ' Division 11.5 (commencing with Section 9500) of the Code, except that, if, following the filing of the Engineer's Report specified in Section 9523 and any subsequent modifications of the Engineer's Report, the Council finds that each of the conditions specified in the resolution of intention to issue the refunding bonds is satisfied and that adjustments to the assessments are on a pro-rata basis, the Council may approve and confirm the Engineer's Report and Resolution 21110 Page 6 may, withoutfurther proceedings, authorize, issue and sell the refunding bonds pursuantto Chapter 3 (commencing with Section 9600) of Division 11.5 of the Code. , 17. No Private Contract. Notice is hereby given that, in the opinion of this Council, the public interest will not be served by allowing the property owners to take the contract for the construction of the improvements and therefore that, pursuant to Section 20487 of the California Public Contract Code, no notice of award of contract shall be published. 18. Collection and Advance Payments of Assessments. It is the intention of this Council that collection of assessments, advance retirement of the bonds, and advance payment of assessments shall be conducted and accomplished in accordance with the alternative procedure specified by Sections 8760, et. seq. of the Code. 19, Annual Assessment for Administrative Costs. This Council hereby makes the following costs incurred by the City, and not otherwise reimbursed, chargeable on each parcel in Assessment District No. 164 in an annual amount not to exceed two percent (2%) of the annual assessment due on each said parcels, referred to more particularly in the report of the Engineer of Work: (a) Costs resulting from the administration and collection of assessments; (b) Costs resulting from the administration and registration of the bonds; and (c) Costs resulting from the administration of the reserve fund and other related funds established in connection with bonds, including without limitation the costs and expenses ' associated with complying with federal arbitrage requirements. 20 No Proceedings Under Special Assessment Investiqation, Limitation and Majority Protest Act of 1931 Required. A petition signed by the owners of more than sixty percent (60%) of the property proposed to be assessed for the cost of the acquisitions and improvements waiving, among other things, the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931, Division 4 of the Code ("Majority Protest Act"), is on file in the office of the City Clerk and written evidence satisfactory to the Council has been submitted indicating that the proposed assessment will not exceed seventy-five percent (75%) of the estimated fair market value of any land to be assessed as valued after the proposed public improvements are constructed as to the lands which are in the process of being subdivided, and as to which Sections 2804.1 and 2804.2 apply, and proceedings under said Majority Protest Act will not be taken. 21. References to Statutory Provisions. All references in this resolution to statutory provisions of the Streets and Highways Code shall be deemed to include any and all amendments to those provisions. 22. Repeal of Inconsistent Resolutions. Any resolution of this City Council, and any part of such resolution, inconsistent with this resolution, is hereby repealed to the extent of such Inconsistency. 23. Effective Date. This resolution shall become effective upon the date of its adoption. 1 Resolution 21110 Page 7 ' ADOPTED this 6'" day of October, 2004. AYES: Members McCulloch, Mills, Pougnet and Mayor Oden NOES: None ABSENT. Member Foat ATT B 7 Y City Clerk REVIEWED & APPROVED AS TO FORM: CITY OF PALM SPRINGS, CALIFORNIA City Manager r� Resolution 21110 Page 8 EXHIBIT A DESCRIPTION OF WORM{ ASSESSMENT DISTRICT NO. 164 (MOUNTAIN GATE 2) CITY OF PALM SPRINGS The public improvements proposed to be installed, constructed, and financed by Assessment District No. 164 (Mountain Gate 2) generally consist of street improvements, sewer and water improvements, landscaping and electric utility improvements, water and sewer facility fees, and cabling and connection fees, more specifically described as follows: ZONE 1 -- "TIRE YENTANA COLLECTION" TRACT NO. 32028 and 32028-1 (115 RESIDENTIAL LOTS) Plans and Specifications The cost of approved plans for the improvements to be acquired. Sewer Sewer improvements including 8-inch diameter sewer main and 4-inch diameter sewer laterals, together with appurtenances and appurtenant work, all in the interior public rights -of -way to serve each residential lot. Water Water improvements including water mains and 1-inch diameter water service lines, together with appurtenances and appurtenant work, all in the interior public rights -of -way to serve each residential lot. Landscaping Landscape improvements including parkway landscaping, together with appurtenances and appurtenant work, on the northeasterly side of Palm Canyon Drive (State Highway I11) located within Tract 32028 and 32028-1 as shown on the Assessment Diagram in Section 4, directly adjacent to the tract boundaries of Tract 32028 and 32028-1. Underground Existing Power Lines Includes but is not limited to undergrounding existing overhead electric power lines (Southern California Edison) within the public rights -of -way and easements in Tract No. 32028 and 32028- 1, appurtenances and appurtenant work. Water and Sewer Fees Includes water facility fees for the Desert Water Agency and sewer facility Fees for the City of Palm Springs. ' ZONE 2 — "THE EL DORADO COLLECTION", TRACT NO. 32028 and 32028-1 (81 Lats Plans and Specifications The cost of approved plans for the improvements to be acquired. Sewer Sewer improvements including 8-inch diameter sewer main and 4-inch diameter sewer laterals, together with appurtenances and appurtenant work, all in the interior public rights -of -way to serve each residential lot. Water ' Water improvements including water mains and 1-inch diameter water service lines, together with appurtenances and appurtenant work, all in the interior public rights -of -way to serve each residential lot. Landscaping Landscape improvements including parkway landscaping, together with appurtenances and appurtenant work, on the northeasterly side of Palm Canyon Drive (State Highway 111) located within Tract 32028 and 32028-1 as shown on the Assessment Diagram in Section 4, directly adjacent to the tract boundaries of Tract 32028 and 32028-1. Underground Existing Power Lines Includes but is not limited to undergrounding existing overhead electric power lines (Southern California Edison) within the public rights -of -way and easements in 'Tract No. 32028 and 32028- 1, appurtenances and appurtenant work. Water and Sewer Fees Includes water facility fees for the Desert Water Agency and sewer facility fees for the City of Palm Springs. '