HomeMy WebLinkAbout10/6/2004 - STAFF REPORTS (17) DATE: October 6, 2004
TO: City Council
FROM: Director of Public Works/City Engineer
ASSESSMENT DISTRICT 164
RECOMMENDATION:
It is recommended that the City Council approve various Resolutions related to the proposed
formation of a 1913 Act Assessment District, using 1915 Act Bonds for certain eligible public
improvements for the development project known as Mountain Gate 11 consisting of Tract No.
32028 and 32028-1, located on the northeast side of State Highway 111 north of Gateway
Drive.
SUMMARY:
On July 28, 2004, the City Council approved an application submitted by Mountain Gate II
Palm Springs Ventures, LLC for further processing of the formation of Assessment District
164.
The City Council's authorization directed staff to select and negotiate contracts with
consultants for an assessment engineer's report, appraisal and market absorption study;and
authorized staff to collect necessary deposits from the applicant to fund consultant contracts.
A Resolution of Intention is required to be adopted by the City Council to commence
proceedings to form Assessment District 164 and to approve the Preliminary Engineer's
Report detailing the estimated costs to be financed by Assessment District 164 through the
future issuance of Assessment District Bonds, as well as a general description of the
improvements to be funded. If the Resolution of Intention is adopted, a date for a public
hearing will be set not less than 45 days later at which time the remaining formation
proceedings will be conducted.
BACKGROUND:
Mountain Gate 11 Palm Springs Ventures, LLC, is the developer for Tentative Tract No. 32028
and 32028-1 located on the northeast side of State Highway 111 north of Gateway Drive.
The Tentative Tract Map was approved by City Council on July 7, 2004, but the Final Maps
have not yet recorded. The Two Final Maps together consist of a total of 196 single family
residential lots.
Carlos Cueva of Mountain Gate 11 Palm Springs Ventures, LLC has submitted an application
for formation of a 1913 Act Assessment District using 1915 Act Bonds for the public
improvements for this development in accordance with the City's Statement of Policies and
Procedures for Special Assessment and Mello-Roos Community Facility District (CFD)
Municipal Bond Financing for Public Improvements for Development Projects, a pre-
application conference with staff was held and the applicant submitted a $10,000 initial
application fee. On March 24, 2004, the applicant met with the City's Special Districts
Committee to review the proposed application. The Committee had a number of concerns
with the application that were expressed to the applicant, who revised the application in
response to those concerns. The Committee reconvened on July 1, 2004 and on July 28,
2004 City Council approved the application for further processing.
Assessment District 164
October 6, 2004
Page 2
Accordingly, staff entered into contracts with the following consultants as necessary to
proceed with the formation of Assessment District 164: Albert A. Webb Associates for
assessment engineering services (contract cost $25,000); Harris Realty Appraisal for
appraisal services (contract cost $18,000); and Empire Economics, Inc., for the market
absorption study services (contract cost $12,500). The applicant has submitted the
necessary deposit to cover the contract costs for these service contracts. These costs will
be reimbursable to the Property Owner through the assessment district pursuant to one of
the Resolutions to be adopted today.
The applicant is proposing that the Assessment District fund utility undergrounding, public
sewer improvements, water improvements, landscaping improvements, sewer fees, water
fees, engineering costs and all district formation and financing costs for the development
project.
A Resolution of Intention is required to be adopted by the City Council to commence
proceedings to form Assessment District 164 and to approve the Preliminary Engineer's
Report detailing the estimated costs to be financed by Assessment District 164 through the
future issuance of Assessment District Bonds, as well as a general description of the
improvements to be funded. If the Resolution is adopted, and the preliminary engineer's
report approved, a date for a public hearing will be set not less than 45 days later at which
time the remaining formation proceedings will be conducted. The hearing is to be scheduled
for December 1, 2004.
After the formation of Assessment District 164 is complete, the City will be the issuer of the
tax-exempt obligations for the Assessment District. The City does not incur any obligation for
the subject debt, which will be secured and payable solely from assessments on the property
within Assessment District 164 and will constitute a foreclosure lien on such property if
unpaid.
The Assessment District Bonds would fund construction of the public improvements,
incidental expenses and bond issuance costs. The estimated assessment per lot is$17,600
for each Ventana Series home and $22,000 per lot for each El Dorado series home, both
within Tracts 32028 and 32028-1. The Assessment District Bonds would be issued shortly
after the formation proceedings are completed.
The City Council's approval of the Resolution of Intention in no way commits the City to any
financial contribution or liability to repay the bond indebtedness. To conform to the City's
Policy regarding Assessment Districts, the Assessment District Bonds will not be issued until
the total combined appraised land and improvement values are at least 4 times the
estimated assessments. The overall tax rate after the Assessment District Bonds are
issued, including assessments, cannot exceed 2% of property values.
i q# �,
Assessment District 164
October 6, 2004
Page 3
SUBMITTEDo ^��
DAVID J. BARAKIAN
Director of Public Works/City Engineer
APPROVED:
DA H. R A
Cit anager
ATTACHMENTS:
1. Resolutions (4)
2. Preliminary Engineer's Report
l � l
TO: CITY CLERK
CITY OF PALM SPRINGS
PETITION AND WAIVER
ASSESSMENT DISTRICT NO. 164
(MOUNTAIN GATE II)
1. We, the undersigned, are the owners of the lots and parcels of land within
proposed Assessment District No. 164 (the "Improvement District") shown and described
on Exhibit A, attached hereto and incorporated herein.
2. We hereby file with the City Clerk of the City of Palm Springs this
Petition and Waiver in order to petition the City Council of the City of Palm Springs to
undertake proceedings for the formation of the Assessment District pursuant to the
Municipal Improvement Act of 1913 (California Streets and Highways Code, Section
10000 et seq.) for purposes of assessment of the lots and parcels within the Assessment
District to pay for improvements (the "Improvements") consisting of sewer and water
improvements, landscaping and electrical utility improvements, cabling and connection
fees.
3. We understand that the present best estimate of the cost of the total bond
Improvements, including incidental and financing costs, is approximately$3,806,000.
4. We understand that the cost of the Improvements, net of any contributions,
will be apportioned among the assessable lots and parcels of land within the proposed
Assessment District in proportion to the special benefits the lots and parcels will receive
from the Improvements.
5. We understand that an Engineer's Report has been prepared in connection
with the proposed Assessment District, which includes, among other things, a description
of the proposed Improvements, an estimate of the total cost of the Improvements, a
diagram of the Assessment District, and an assessment of the total cost of the
Improvements spread against the properties in the Assessment District. We understand
that the Engineer's Report will be on file in the office of the City Clerk, 3200 East
Tahquitz Canyon Way, Pahn Springs, California 92263, and is open to inspection.
6. We understand that the City Council will conduct a public hearing on the
Engineer's Report and the proposed assessments. We understand that the public hearing
is scheduled for December 1, 2004 in the City Council Chambers at City Hall, 3200 East
Tahquitz Canyon Way, Palm Springs, California 92263.
7. We hereby expressly waive any and all investigation and other
proceedings required and all limitations under the "Special Assessment Investigation,
Limitation and Majority Protest Act of 1931" (being Division 4 of the California Streets
and Highways Code, cornnencing with Section 2800) (the "1931 Act"). We understand
that signing this Petition and Waiver is not a waiver of our right to protest the assessment
1
24293 v.1
proceedings for the Improvements. However, we understand that by signing this Petition
and Wavier, we waive any right we may have to stop the formation of the Assessment
District through filing a majority protest Imder the 1931 Act (i.e., written protests filed
and not withdrawn by the owners of more than one-half of the area of the property to be
assessed.)
8. We understand that the City Council must abandon the proceedings to
form the Assessment District in the event of a majority protest under Article XIIID of the
California Constitution. A majority protest exists under Article XIIID if, at the
conclusion of the hearing on the Assessment District, the ballots submitted (and not
withdrawn) in opposition to the proposed assessments exceed the ballots submitted (and
not withdrawn) in favor of the assessments, with ballots weighted according to the
proportional financial obligation of the affected properties.
9. We understand that in the absence of a majority protest (as defined in
paragraph 8, above) the City Council may, following the conclusion of the public hearing
on the proposed assessments, confine the proposed assessments and order the proposed
improvements. We understand that the City Council may make changes to the proposed
improvements (including the elimination of improvements) and cost estimates (including
line items in the Engineer's Report); provided, however, this Petition and Waiver shall
not be deemed as consent to any increase in the amount of any individual assessment
beyond the amounts set forth in the Engineer's Report.
10. This Petition and Waiver may be signed in counterparts.
When signed return to:
City Cleric
City of Pahn Springs
3200 East Tahquitz Canyon Way
Palm Springs, California 92263
2
24293 v.I
THE UNDERSIGNED HEREBY WARRANTS, REPRESENTS AND DECLARES
UNDER PENALTY OF PERJURY UNDER THE LAWS OF , THE STATE OF
CALIFORNIA that the undersigned is the owner of the property described below; that
the names of all mortgages and beneficiaries under any existing mortgages or deeds of
trust encumbering the property are as set forth in Exhibit B.
MOUNTAIN GATE II PALM SPRINGS VENTURES, LLC,
a Delaware limited liability company
By: Century Crowell Communities, L.P.,
a California limited partnership,
Its Development Management Company
By: Century Homes Communities,
a California corporation
Its: General Partner
By:
Name: Carlos H. Cueva
Its: Public Financing Manager
THE UNDERSIGNED HEREBY WARRANTS, REPRESENTS AND
DECLARES UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE
OF CALIFORNIA that the undersigned is the mortgagee or beneficiary of a mortgage or
deed of trust upon all or a portion of the property described above and joins in this
petition and waiver with the above owner.
IndyMac Bank
Signature
Print Name
Title
3
24293 v.l
EXHIBIT A
ASSESSMENT DIAGRAM FOR
ASSESSMENT DISTRICT NO, 164 ,SSESS,QR W. Wl�
( MOUNTAIN GATE 2 ) 5, W.
CITY OF PALM SPRMS, COUNTY OF RIVERSM STATE OF CALFORM4
DISTRICT
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24293 v i
EXHIBIT B
MORTGAGEES
IndyMac Bank
800 North Haven Avenue
Suite 320
Ontario, CA 91764
5
CITY OF PALM SPRINGS, CALIFORNIA
ASSESSMENT DISTRICT NO. 162
"THE VILLAS" (TRACT 29077)AND "48 @ BARISTO" (TRACT 30941)
OF THE CITY OF PALM SPRINGS
CERTIFICATE OF THE ELECTION OFFICIAL
AS TO THE RESULTS OF THE CANVASS OF THE ASSESSMENT BALLOT
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )
CITY OF PALM SPRINGS )
I, Patricia Sanders, City Clerk in my capacity as Elections Official in the City of
Palm Springs, California, DO HEREBY CERTIFY, that I did canvass the return of the votes
cast at the assessment proceedings on October 6, 2004, held in
ASSESSMENT DISTRICT NO. 162
"THE VILLAS" (TRACT 29077)AND "48 @ BARISTO" (TRACT 30941)
OF THE CITY OF PALM SPRINGS
I FURTHER CERTIFY that the Statements of All Votes Cast, to which this
certificate is attached, shows the total number of ballots cast within the territory to be
included within the District and the totals shown for such Proposition are full, true and
correct.
WITNESS my hand and Official Seal this 6`h day of October, 2004.
CITY OF PALM SPRINGS, CALIFORNIA,
ASSESSMENT DISTRICT NO. 162 "THE
VILLAS" (TRACT 29077) AND "48 @
BARISTO" (TRACT 30941)
C"L4Cit�;Clerk
CITY OF PALM SPRINGS
ASSESSMENT DISTRICT NO. 162
(THE VILLAS IN OLD PALM SPRINGS AND 48 @ BARISTO)
ASSESSMENT BALLOT
(Government Code Section 53753)
Property Owner:
PALM SPWiningham
OMES LLC
A Californco
By:
Na
Its: Authorized Representative
Propertye` �a
PALM MES V, LLC,
a Califoan /
By:
Intative
Property Owned: See Exhibit A attached hereto and by this reference incorporated
herein.
As required by Section 53753 of the California Government Code, and in order
that the formation of the Assessment District No. 162 (The Villas in Old Palm Springs
and 48 @ Baristo) ("Assessment District 162") complies in all respects with Section 4 of
Article XHI of the California Constitution (Proposition 218), this Assessment Ballot is
furnished to all owners of property in such Assessment District No. 162 in order that they
may indicate their support or opposition to the formation of such Assessment District and
the levy and collection of special assessments on the property therein. Please mark your
ballot as either "YES" or "NO" and return it in the envelope provided no later than 7:00
o'clock p.m., Wednesday, October 6, 2004 as follows:
City of Palm Springs
3200 East Tahquitz Canyon Way
Palm Springs, CA 92263
Attn: City Clerk
A3/042/24299 vl A-I
BALLOT PROPOSITION
Shall the City of Palm Springs form
Assessment District No. 162 and
levy assessments for the propose of
providing funds and selling YES
improvement bonds over a period
not to exceed 25 years from the
next September 2 following 90 days
of the date of such bonds in an —
amount not to exceed $1,348,000 to
pay for the acquisition and
construction of public and utility
improvements which specially
benefit property in such Assessment
District No. 162, such property also NO
known as Tract No. 29077 and
Tract No. 30941 and for the
payment of costs of issuance, the
funding of a reserve fund and
capitalized interest in connection
with such bonds.
Ballots will be tabulated at the conclusion of the public hearing on the Report of
the Engineer of Work with ballots weighted according to the proportional financial
obligation of the affected property as compared to other assessed property in the
Assessment District. If the assessment ballots submitted but not withdrawn in opposition
to the proposed assessment exceed the assessment ballot submitted but not withdrawn in
its form, a majority protest will be declared and no further proceedings shall be taken.
ALL MARKS MUST BE MADE WITH INDELIBLE INK. ERASURES OR
TEARS WILL INVALIDATE THIS BALLOT. IF THIS BALLOT IS TORN OR
DEFACED IT MAY BE EXCHANGED FOR A NEW UNMARRED BALLOT;
PROVIDED NO SUCH EXCHANGE WILL EXTEND THE DEADLINE FOR
RECEIPT OF THIS BALLOT BY THE CITY CLERK.
Dated: August 4, 2004
CITQ F�PA—LM/SP GS
B C
City Clerk
A3/042/24299 vl A-1
P A L M S P R I N G S A D N O . 1 6 2 ( T H E V I L L A S & 4 8 @ E A R I S T O )
Date: 08/03/04 01:01 pm AFTER UPDATES ON NNE 28, 2004 Page:
A S S E S S M E N T R O L L
A.V. LAND
ASSESSMENT NO. A.V. IMPROVEMENTS ASSESSMENTS ASSESSMENT ASSESSME
ASSE'S PARCEL NO. ASSESSEE'S NAME & ADDRESS A.V. PARCEL LEVIED/PENDING AS FILED AS CONFIRM
0010001 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513120058-3 ATT: ERNEST VINCENT $0
160 E. ANDREAS
PALM SPRINGS CA 92262 $66,965
0010002 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513120059-4 ATT: ERNEST VINCENT $0
180 E. ANDREAS _______-_--
PALM SPRINGS CA 92262 $66,965
0010003 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513120060-4 ATT: ERNEST VINCENT $0
180 E. ANDREAS -----------
PALM SPRINGS CA 92262 $66,965
0010004 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513120061-5 ATT: ERNEST VINCENT $0
180 E. ANDREAS _______----
PALM SPRINGS CA 92262 $66,965
0010005 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513120062-6 ATT: ERNEST VINCENT $0
180 E. ANDREAS -----------
PALM SPRINGS CA 92262 $66,965
0010006 PALM SPRINGS MODERN HOMES V *66,965 $0.00 $20,000.00
513120063-7 ATT: ERNEST VINCENT $0
180 E. ANDREAS -_________-
PALM SPRINGS CA 92262 $66,965
0010007 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513120064-8 ATT: ERNEST VINCENT $0
180 E. ANDREAS -----------
PALM SPRINGS CA 92262 $66,965
D010008 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513120065-9 ATT: ERNEST VINCENT $0
180 E. ANDREAE -----------
PALM SPRINGS CA 92262 $66,965
0010009 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513120066-0 ATT: ERNEST VINCENT $0
180 E. ANDREAS -----------
PALM SPRINGS CA 92262 $66,965
P A L M S P R I N G S A D N 0 . 1 6 2 ( T H E V I L L A S & 4 8 p E A R I S T O )
Date: 08/03/04 01:01 pm AFTER UPDATES ON JUNE 28, 2004 Page:
A S S E S S M E N T R 0 L L
A.V. LAND
ASSESSMENT NO. A.V. IMPROVEMENTS ASSESSMENTS ASSESSMENT ASSESSME
ASSR'S PARCEL NO. ASSESSEN'S NAME & ADDRESS A.V. PARCEL LEVIED/PENDING AS FILED AS CONFIRM
-
-----0010010-_----==-PALM SPRINGS MODERN HOMES
-V-----------------$66,96 ------------------$0 00------------$20,000.00
513120067-1 ATT: ERNEST VINCENT $0
180 E. ANDREAS
PALM SPRINGS CA 92262 $66,965
0010011 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513120068-2 ATT: ERNEST VINCENT $0
180 E. ANDREAS -----------
PALM SPRINGS CA 92262 $66,965
0010012 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513120069-3 ATT: ERNEST VINCENT $0
180 E. ANDREAS -______--_-
PALM SPRINGS CA 92262 $66,965
0010013 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513120070-3 ATT: ERNEST VINCENT $0
180 E. ANDREAS
PALM SPRINGS CA 92262 $66,965
0010014 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513120071-4 ATT: ERNEST VINCENT $0
180 E. ANDREAS
PALM SPRINGS CA 92262 $66,965
0010015 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513120072-5 ATT: ERNEST VINCENT $0
190 E. ANDREAS -----------
PALM SPRINGS CA 92262 $66,965
0010016 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513120073-6 ATT: ERNEST VINCENT $0
180 E. ANDREAS --________-
PALM SPRINGS CA 92262 $66,965
0010017 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513120074-7 ATT: ERNEST VINCENT $0
180 E. ANDREAS
PALM SPRINGS CA 92262 $66,965
0010018 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513120075-6 ATT: ERNEST VINCENT $0
180 E. ANDREAS _-
PALM SPRINGS CA 92262 $66,965
P A L M S P R I N G S A D N O . 1 6 2 ( T H E V I L L A S & 4 8 @ H A R I S T O )
Date: 08/03/04 01:01 pm AFTER UPDATES ON NNE 28, 2004 Page:
A S S H S S M E N T R O L L
A.V. LAND
ASSESSMENT NO. A.V. IMPROVEMENTS ASSESSMENTS ASSESSMENT ASSESSME
ASSR'S PARCEL NO. ASSESSEE'S NAME & ADDRESS A.V. PARCEL LEVIED/PENDING AS FILE➢ AS CONFIRM
----------___________________________________________________----------_______----________
0010019 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513120076-9 ATT: ERNEST VINCENT $0
180 E. ANDREAE -----------
PALM SPRINGS CA 92262 $66,965
0010020 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
51312007?-0 ATT: ERNEST VINCENT $0
180 E. ANDREAS
PALM SPRINGS CA 92262 $66,965
0010021 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513120078-1 ATT: ERNEST VINCENT $0
180 E. ANDREAS -----------
PALM SPRINGS CAA 92262 $66,965
0010022 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513120079-2 ATT: ERNEST VINCENT $0
180 E. ANDREAS -----------
PAVM SPRINGS CA 92262 $66,965
0010023 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513120080-2 ATT: ERNEST VINCENT $0
180 E. ANDREAS -----------
PALM SPRINGS CA 92262 $66,965
0010024 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513120081-3 ATT: ERNEST VINCENT $0
180 E. ANDREAS -----------
PALM SPRINGS CA 92262 $66,965
0010025 PALM SPRINGS MODERN MOMS V $66,965 $0.00 $20,000.00
513120082-4 ATT: ERNEST VINCENT $0
180 E. ANDREAS -----------
PALM SPRINGS CA 92262 $66,965
0010026 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513120083-5 ATT: ERNEST VINCENT $0
180 E. ANDREAS -----------
PALM SPRINGS CA 92262 $66,965
0010027 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513120084-6 ATT: ERNEST VINCENT $0
180 E. ANDREAS -----------
PALM SPRINGS CA 92262 $66,965
P A L M S P R I N G S A D N O . 1 6 2 ( T H E V I L L A S & 4 8 @ E A R I S T O )
Date: 08/03/04 01:01 pm AFTER UPDATES ON JUNE 28, 2004 Page:
A S S E S S M E N T R O L L
A.V. LAND
ASSESSMENT NO. A.V. IMPROVEMENTS ASSESSMENTS ASSESSMENT ASSESSMEI
ASSR'S PARCEL NO. ASSESSES'S NAME & ADDRESS A.V. PARCEL LEVIED/PENDING AS FILED AS CONFIRM
== --- ==========0010028----_----PALM SPRINGS MODERN HOMES-V $66, ------------------$0 00 -------$20,000.00------------
513120085-7 ATT: ERNEST VINCENT $0
180 E. ANDREAE -----------
PALM SPRINGS CA 92262 $66,965
0010029 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513120086-8 ATT: ERNEST VINCENT $0
180 E. ANDREAS -----------
PALM SPRINGS CA 92262 $66,965
0010030 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513120087-9 ATT: ERNEST VINCENT $0
180 E. ANDREAS -----------
PALM SPRINGS CA 92262 $66,965
0010031 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513120088-0 ATT: ERNEST VINCENT $0
180 E. ANDREAS -----------
PALM SPRINGS CA 92262 $66,965
0010032 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513120089-1 ATT: ERNEST VINCENT $0
180 E. ANDREAS -----------
PALM SPRINGS CA 92262 $66,965
0010033 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513120090-1 ATT: ERNEST VINCENT $0
180 E. ANDREAS -----------
PALM SPRINGS CA 92262 $66,965
0010034 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513120091-2 ATT: ERNEST VINCENT $0
180 E. ANDREAS -----------
PALM SPRINGS CA 92262 $66,965
0010035 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513120092-3 ATT: ERNEST VINCENT $0
180 E. ANDREAS -----------
PALM SPRINGS CA 92262 $66,965
0010036 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513120093-4 ATT: ERNEST VINCENT $0
180 E. ANDREAS -----------
PALM SPRINGS CA 92262 $66,965
P A L M S P R I N G S A D N 0 . 1 6 2 ( T H E V I L L A S & 4 8 @ E A R I S T O )
Date: 08/03/04 01:01 pm AFTER UPDATES ON .TUNE 28, 2004 Page:
A S S E S S M E N T R O L L
A.V. LAND
ASSESSMENT NO. A.V. IMPROVEMENTS ASSESSMENTS ASSESSMENT ASSESSME
ASSR'S PARCEL NO. ASSESSES'S NAME & ADDRESS A.V. PARCEL LEVIED/PENDING AS FILED AS CONFIRM
0010037 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $2p,000 00
513141017-1 ATT: ERNEST VINCENT $0
180 E. ANDREAE -----------
PALM SPRINGS CA 92262 $66,965
0010038 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513141018-2 ATT: ERNEST VINCENT $0
180 E. ANDREAS -----_____-
PALM SPRINGS CA 92262 $66,965
0010039 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513141019-3 ATT: ERNEST VINCENT $0
180 E. ANDREAS -----------
PALM SPRINGS CA 92262 $66,965
0010040 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513141020-3 ATT: ERNEST VINCENT $0
180 E. ANDREAS _____------
_ALM SPRINGS CA 92262 $66,965
0010041 PALM SPRINGS MODERN HOMES V $66,965 $0.00
$z a,000.00
513141021-4 ATT: ERNEST VINCENT $0
180 E. ANDREAS -________--
PALM SPRINGS CA 92262 $66,965
0010042 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513141022-5 ATT: ERNEST VINCENT $0
180 E. ANDREAS -----------
PALM SPRINGS CA 92262 $66,965
0010043 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513141023-6 ATT: ERNEST VINCENT $0
180 E. ANDREAS
PALM SPRINGS CA 92262 $66,965
0010044 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513141024-7 ATT: ERNEST VINCENT $0
180 E. ANDREAE -----------
PALM SPRINGS CA 92262 $66,965
0010045 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513141025-8 ATT: ERNEST VINCENT $p
180 E. ANDREAS ---_______-
PALM SPRINGS CA 92262 $66,965
P A L M S P R I N G S A D N O . 1 6 2 ( T H E V I L L A S 0 4 8 @ B A R I S T O )
Date: 08/03/04 01:01 pm AFTER UPDATES ON DUNE 28, 2004 Page:
A S S E S S M E N T R O L L
A.V. LAND
ASSESSMENT NO. A.V. IMPROVEMENTS ASSESSMENTS ASSESSMENT ASSESSME
ASSR'S PARCEL NO. ASSESSES-S NAME F ADDRESS A.V. PARCEL LEVIED/PENDING AS FILE➢ AS CONFIRM
-----0010046------_--PALM SPRINGS MODERN HOMES V - - _-- - $66,965 ___________$0.00--_---_-__--$20,000 00-----_______
513141026-9 ATT: ERNEST VINCENT $0
180 E. ANDREAS -----------
PALM SPRINGS CA 92262 $66,965
0010047 PALM SPRINGS MODERN HOMES V $66,965 $0.00 $20,000.00
513141027-0 ATT: ERNEST VINCENT $0
180 E. ANDREAS _____------
PALM SPRINGS CA 92262 $66,965
0020001 PALM SPRINGS MODERN HOMES II $1,069,603 $0.00 $384,000.00
508100041-7 ATT: ERNEST VINCENT $0
150 E. ANDREAE --
PALM SPRINGS CA 92262 $1,069,603
TOTAL LAND: $4,216,958 $0.00 $1,324,000.00
TOTAL IMPROVEMENT $0
------------
TOTAL PARCEL: $4,216,958
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA, SETTING FORTH TERMS AND CONDITIONS
UNDER WHICH THE CITY WILL COMMENCE PROCEEDINGS FOR
CREATION OF AN ASSESSMENT DISTRICT WITHIN SAID CITY;
CREATING A SEPARATE FUND INTO WHICH SHALL BE DEPOSITED
MONEYS ADVANCED BY THE OWNER OF PROPERTY WITHIN THE
PROPOSED ASSESSMENT DISTRICT; PROVIDING FOR THE USE
AND INVESTMENT OF SUCH FUNDS; PROVIDING FOR THE
REIMBURSEMENT OF SUCH FUNDS FROM FUTURE BOND
PROCEEDS; AND MAKING CERTAIN FINDINGS AND
DETERMINATIONS IN CONNECTION THEREWITH.
Assessment District No. 164
(Mountain Gate ll)
WHEREAS, this City Council of the City of Palm Springs (the "City") has been
requested by the owner of certain property within the City to form an Assessment District
("Assessment District 164") for the purpose of acquiring and constructing certain public
improvements benefiting such owner; and
WHEREAS, this City Council has retained the services of bond counsel for the
purpose of assisting in the formation of Assessment District 164 and the financing
thereof; and
WHEREAS, the Engineer of Work has prepared certain preliminary maps,
estimates and other documents required for the formation of the proposed Assessment
District; and
WHEREAS, such owner has requested that further proceedings be taken by this
City Council for the formation of said Assessment District; and
WHEREAS, said Engineer of Work has informed the City that the initial design
engineering, mapping, and other services required in connection with the formation of
such Assessment District will require the City to have funds available in the amount of
$537,146; and
WHEREAS, the City is unwilling to put existing City funds at risk to pay such
costs; and
WHEREAS, said owner has expressed a willingness to advance $537,146 (the
"Initial Deposit") to the City under the terms and conditions hereinafter set forth for the
purpose of making such funds available for said initial engineering services and certain
other costs and expenses related to formation of Assessment District 164 and the
issuance of bonds to fund the acquisition and construction of the public improvements;
NOW, THEREFORE, the City Council of the City of Palm Springs, California
DOES HEREBY FIND, RESOLVE, DETERMINE AND ORDER as follows:
1 i
Section 1. That the recitals set forth hereinabove are true and correct in all
respects.
Section 2. That this City Council hereby creates a fund to be known as "City
of Palm Springs, Assessment District No. 164 Preliminary Expense Fund," into which
fund there shall be deposited moneys advanced by the owner of property within
proposed Assessment District No. 164 in the amount set forth on Exhibit A attached
hereto.
Section 3. That the amount to be advanced to the City is set forth on said
Exhibit A and that upon receipt of such sum set forth thereon, the City shall direct the
Engineer of Work to prepare plans and specifications, detailed cost estimates, and a
preliminary assessment diagram and assessment roll for the purpose of meeting the
requirements of the Municipal Improvement Act of 1913, as such requirements apply to
the preparation of the Engineers Report.
Section 4. That moneys held in said fund may be invested by the City in the
manner in which other City funds are invested.
Section 5. That in the event that said Assessment District is formed and
bonds are sold to provide funding for the improvements to be acquired and constructed
in connection with said proceedings, moneys advanced by such owner shall be
reimbursed from the proceeds of the bonds to such owner in the amount of the Initial
Deposit, together with such interest as may have been earned on the investment of such
funds by the City. Such interest to the extent earned shall be prorated in accordance
with the advances of funds made by the owner set forth on Exhibit A. Such reimbursed
funds shall not include any owner contribution to the project.
Section 6. That in the event that such Assessment District is not formed, the
City will reimburse any funds remaining in said fund to such property owner, together
with interest as may have been earned thereon; provided that nothing herein contained
shall require the City to reimburse or refund any moneys other than those advanced by
such property owner.
ADOPTED this day of 2004
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By;
City Clerk City Manager
REVIEWED &APPROVED
2
EXHIBIT A
Mountain Gate II Palm Springs Ventures, LLC (Tracts 32028 and 32028-1) $537,146.
""
4
RESOLUTION NO.
OF THE CITY COUNCIL OF THE CITYOF 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 , 2004, meeting, and authorized staff to proceed
with the formation of Assessment District 164; and
WHEREAS, City staff have entered into a contract services agreement with 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 "Engineer's Report") for
consideration of the formation of Assessment District 164.
A
R'CV tS�tc�
1 .� 4
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 orwill 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.
2
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. Filing 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.
(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,
3
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 for 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 seg., 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.
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.
4
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 bythe 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 pursuant to 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
may,without further proceedings,authorize, issue and sell the refunding bonds pursuant to
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
5
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 Investigation 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.
6
ADOPTED this 6" day of October, 2004.
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED & APPROVED AS TO FORM:
7
EXHIBIT A
CITY OF PALM SPRINGS
ASSESSMENT DISTRICT NO. 164
"MOUNTAIN GATE II"
DESCRIPTION OF WORK
RESOLUTION NO.
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 ll" 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 196 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 agreement with 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 "Engineer's Report") for
consideration of the formation of Assessment District 164.
NOW, THEREFORE, BE IT RESOLVED, as follows:
f
I
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.
8. Special Benefit and Boundary Map. The contemplated acquisitions and
improvements, in the opinion of this Council, are of more than local or ordinary publicbenefit,
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.
2 � �
9. Filing 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.
(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
3 / V�,7( n
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 for the bonds to be issued (as set forth
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 fora 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.
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) As a credit upon the assessment and any supplemental assessment or
for the redemption of bonds, or both; or
(c) For the maintenance of the improvements.
4 ®/
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 forthe
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 pursuant to 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 Engineers Report and
may, without further proceedings, authorize, issue and sell the refunding bonds pursuant to
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. Penalty for Delinquent Payments of Assessments. A penalty of two percent(2%)
per month of the total amount of any delinquent installment shall be added to the delinquent
installment after the close of business on the delinquency date and an additional penalty of
two percent (2%) of the amount of the delinquency shall be added at the beginning of
business on the tenth (10'h) day of each succeeding month until that delinquent installment P
and all penalties thereon are fully paid. This penalty shall be in lieu of all other penalties
5
assessed by other provisions of the law. The County Treasurer and Tax Collector, as the
collection agent for the district, shall collect the penalties with, as the part of, the delinquent
installments. All penalties collected shall be paid over to the bank appointed by the City as
trustee, registrar, paying agent and transfer agent, and upon such payment being made, all
such payments shall be deposited in the redemption fund for the bonds.
20. 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.
21 No Proceedings Under Special Assessment Investigation, 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.
22. 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.
23. 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.
24. Effective Date. This resolution shall become effective upon the date of its
adoption.
ADOPTED this_day of , 2004.
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
City Clerk City Manager
REVIEWED &APPROVED AS TO FORM:
6
EXHIBIT A
DESCRIPTION OF WORK
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 i — "THE VENTANA 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 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 Tees
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
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.
/ V6F
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.
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA, APPROVING BOUNDARY MAP OF
PROPOSED ASSESSMENT DISTRICT NO. 164 AND ORDERING THE
SAME TO BE FILED AND RECORDED.
Assessment District No. 164
(Mountain Gate ll)
WHEREAS, this City Council of the City of Palm Springs (the "Council" and
"City") proposes to take proceedings for the formation of a special assessment district to
be designated "Assessment District No. 164" pursuant to the Municipal Improvement Act
of 1913, Division 12 of the Streets and Highways Code, for the acquisition and
construction of certain public improvements; and
WHEREAS, a boundary map of said proposed special assessment district has
been presented to this Council;
NOW, THEREFORE, the City Council of the City of Palm Springs, California
DOES HEREBY FIND, RESOLVE, DETERMINE AND ORDER:
1. Section 1. Approval of Boundary Map. The boundary map of
proposed Assessment District No. 164 is hereby approved.
2. Section 2. Filing of Map in Board Clerk's Office. The City Clerk is
hereby directed to place said map on file in said Clerk's office and to note thereon the
approval of said map by this Council as provided herein.
3. Section 3. Recording of Map. The City Clerk is hereby directed to
record said map in the office of Riverside County Recorder within fifteen (15) days after
the adoption by this Council of the resolution fixing the time and place of the hearing on
the Engineer of Work's report.
4. Section 4. Repeal of Inconsistent Resolutions. Any resolution of the
Council and any part of such resolution inconsistent with this resolution is hereby
repealed to the extent of such inconsistency.
5. Section 5. Effective Date. This resolution shall be effective upon the
date of its adoption.
ADOPTED this day of 12004
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By:
City Manager
City Clerk
REVIEWED &APPROVED
I
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RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA, PRELIMINARILY APPROVING REPORT OF
ENGINEER OF WORK AND FIXING TIME AND PLACE OF HEARING
THEREON
Assessment District No. 164
(Mountain Gate II)
WHEREAS, this City Council ("Council") of the City of Palm Springs has
heretofore adopted its Resolution of Intention, Resolution No. ("Resolution"),
declaring its intention to acquire and construct certain public improvement work (the
"Project") within proposed Assessment District No. 164, under the Municipal
Improvement Act of 1913, Division 12 of the Streets and Highways Code of the State of
California (the "Act"); and
WHEREAS, the Council, in said Resolution directed the Engineer of Work
("Engineer") to procure the required information and prepare and present to the Board a
written report on the Project required by the Act; and
WHEREAS, the Engineer has prepared such report and presented it to this
Council on this date;
NOW, THEREFORE, the City Council of the City of Palm Springs, California
DOES HEREBY FIND, RESOLVE, DETERMINE AND ORDER as follows:
Section 1. Preliminary Approval of Report. Said report be and the same
hereby is preliminarily approved, and the City Clerk is directed forthwith to endorse the
fact and date of such approval on said report in the office of the City Clerk ("Clerk").
Section 2. Time and Place of Hearing. That the I" day of December, 2004,
at the hour of seven o'clock P.M., in the Council Chambers, 3200 E. Tahquitz Canyon
Way, Palm Springs, California, is hereby fixed as the time and place of hearing on said
report, and such hearing shall be held by this Council.
Section 3. Mailing of Notice. The Clerk is hereby further directed to cause
notice of such hearing at which the Project will be considered to be mailed at least forty-
five (45) days prior to such hearing as provided in the Act and Government Code
Section 53753, postage prepaid, to all persons whose property is proposed to be
assessed to pay any part of the cost of the Project, whose names and addresses appear
on the last equalized roll or as known to the Clerk.
Section 4. Mailing of Ballots. The Clerk is hereby directed to cause
assessment ballots mailed along with the notices described in Section 3 hereof as
required by Government Code section 53753. Such ballots shall be tabulated by the
Clerk at the conclusion of the hearing.
Section 5. Repeal of Inconsistent Resolutions. Any resolution of the City
Council and any part of such resolution inconsistent with this resolution is hereby
repealed to the extent of such inconsistency.
Section 6. Effective Date. This resolution shall become effective upon the
date of its adoption.
ADOPTED this day of 2004
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By:
City Manager
City Clerk
REVIEWED &APPROVED
23891.1