HomeMy WebLinkAbout1995-040
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RESOLUTION NO.
95-40
2 RESOLUTION OF THE CITY OF SAN BERNARDINO REVISING SECTION
1 OF RESOLUTION 90-2, RELATING TO THE AMOUNT OF AN INFRASTRUCTURE
3 FEE TO BE LEVIED FOR RIGHT-OF-WAY H1PROVEMENTS AND PUBLIC
H1PROVEMENTS WITHIN THE VERDEMONT AREA, AND ADOPTING THE THIRD
4 AMENDMENT TO THE ENGINEER'S REPORT.
5 WHEREAS, the City of San Bernardino, California (the
6 "City") on January 3, 1990, adopted an urgency ordinance (HC-695)
7 which established and authorized the levy of an infrastructure
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fee (the "Infrastructure Fee") for
the purposes
of funding the
certain
improvements
and public
right-of-way
costs
of
i~provements within the Verde~ont
Area, all
as more fully
11 described in the urgency ordinance; and
12
WHEREAS, in connection with its adoption of the January
13 urgency ordinance, the City on January 3, 1990, also adopted
14 Resolution No. 90-2, setting the amount of the Infrastructure
15 Fee: and
16 WHEREAS, on June 25, 1990, Section 1 of Resolution No.
17 90-2 was amended by Resolution No. 90-253, revising the amount of
18 the Infrastructure Fee; and
19 WHEREAS, on March 2, 1992, Section 1 of Resolution 90-2
20 as amended by Resolution No. 92-87, revising the a~ount of the
21 Infrastructure Fee: and
22 vIHEREAS, the City deems it necessary to provid~ for
23 revision to the amount of the Infrastructure Fee set in
24 Resolution No. 90-2, as amended by Resolutions No. 90-253, 91-9
25 and 92-87: and
26 WHEREAS, a public hearing was duly advertised and held on
27 February 20
, 1995, and the hearing closed after public
28 comment.
1-19-95
'tf6-'/o
RESO: AMENDING RESOLUTION
INFRASTRUCTURE FEE
VERDEMONT
90-2
TO
ADJUST
NO.
1 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COHt1ON
COUNCIL OF THE CITY OF SAN BERNARDINO, AS FOLLOWS:
2
3 SECTION 1: Section 1 of Resolution No. 90-2 is hereby
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amended to read:
Infrastructure Fee.
The Infrastructure Fee
"SECTION 1:
as established pursuant to the urgency ordinance and set by
Resolution No. 90-2 is hereby revised to set a fee in the amount
of $1,500.00 effective sixty (60) days from the date of this
resolution, per Equivalent Dwelling Unit, as said term is defined
in the ordinance.
Said Infrastructure Fee shall also be subject to further
increase pursuant to the terms of any subsequent resolutions to
13 be adopted by the Mayor and Common Council as may be deemed
14 necessary in the best interests of the City.
Said fee makes NO
15 provision for any part of the water transmission, distribution,
16 storage or delivery system in the area defined and all water
17 related fees shall be paid per established policy of the City of
18 San
Bernardino
Reimbursement provisions
Water Department.
19 contained
in
Ordinance
HC-707,
relative
right-of-way
to
20 improvements, shall not apply to the adjusted fee of $1,500.00."
21
SECTION 2.
The Mayor and Conmon Council of the City of
22 San Bernardino do hereby find and determine that the fee as
23 provided in this resolution does not exceed the estimated
24 reasonable cost of providing the service, or facilities for which
25 the fee is imposed, and further find that "Public Improvements"
26 referred to in the ordinance shall be given first priority for
27 consideration of funding over the "Right-of-Way Improvements."
28 / / / /
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1-19-95
tH .t/Z!
RESO: AMENDING RESOLUTION
.INFRASTRUCTURE FEE
NO.
90-2
TO
ADJUST
VERDEMONT
1
2 entitled,
3
SECTION 3.
The Third Amendment to the Engineer's Report,
"Development
Infrastructure
Fees
Verdemont Area,"
dated 11-17-94, is hereby adopted.
4
I HEREBY CERTIFY that the foregoing resolution was duly
5 adopted by the JIolayor and Common Council of the City of San
6 Bernardino at a regular meeting thereof, held on the
7 20th day of February , 1995, by the following vote, to-wit:
8 Council Members: AYES NAYS ABSTAIN ABSENT
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9 NEGRETE x
-- --
10 CURLIN x
11 HERNANDEZ x
--
12 OBERHELMAN x
--
13 DEVLIN x
14 POPE-LUDLAM x
15 MILLER x
--
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day of
20
21
~~r~lerk
The foregoing resolution is hereby approved this 22nd
February
, 1995.
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----f- / )/[ \
/~~ . / (,fUll
, Tom Minor, Mayor
City of San Bernardino
Approved as to form
23 and legal content:
24 James F. Pen~an
City Attorney
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fe~~
By
27 /;
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. '1~-$" '1<;-'-10
AMENDMENT NO. 3
TO
ENGINEER'S REPORT
DEVELOPMENT INFRASTRUCTURE FEES
VERDEMONT AREA
AS PROPOSED
NOVEMBER 17, 1994
NOVEMBER 17, 1994
Prepared by
Department of Public Works
City of San Bernardino
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PURPOSE
This third amendment of the Engineer's Report is the third in
several anticipated amendments to the basic report as prepared in
January of 1990. These amendments are intended to update the
information contained in the report, describe the events that have
taken place in the Infrastructure Area and set forth the basis for
any increase or decrease in the fee associated with the program.
It should also serve to update the anticipated construction
schedule as determined by the Mayor and Common Council.
PREVIOUS ACTIONS
In December of 1989, the Mayor and Common Council enacted emergency
ordinances to effectively implement the Verdemont Infrastructure
Fee Program. Along with this action, Resolution 90-2 was adopted
setting the Fee at $7,375.00 per dwelling unit. This emergency
ordinance was extended and on March 19, 1990, Ordinance MC 707 was
formally adopted which added Chapter 15.73 to the Municipal Code.
Additionally, Resolution 90-253 was adopted as a modification to
Resolution 90-2. This later resolution deleted all of the water
system work from the program and reduced the fee to $6068.00 per
dwelling unit. In January of 1991, Resolution 91-9 was adopted
based on the First Amendment to the Engineer's Report and had the
effect of increasing the fee to $6,976.00. On March 2, 1992
Resolution 92-87 was adopted and had the effect of once again
increasing the fee, this time to a level of $7,699.00.
To date, only a single Mello-Roos district is in place and
Community Facilities District 995 has not be able to generate
interest in the expansion to phase II of the district. While there
has been some interest, insufficient property has been identified
to justify the costs of establishment of the expanded district.
This first CFD was implemented as a means to allow projects in the
system to cover the cost of the fee that were not anticipated at
the outset of the project. It also provided for the payment of
School Fees and involved 4 developers holding 7 properties.
In late 1990 bonds were sold and the funds placed with a fiscal
agent. During 1991, four Tracts were completed and the developers
applied for reimbursement for construction of eligible improvements
installed by their efforts. Additionally, the city adopted a
budget plan for additional improvements and advanced funds for
construction.
To date, only two single property parcels have pre-paid the fee.
There has been no overwhelming effort by the development community
to make payment of the fee to avoid future increases and as a
result, there is little funding available. After distribution to
bond service, cost of issuance, reserve fund, capitalized interest
and payout to the School District, there was an estimated available
,
95 -If()
balance of $466,000.00 for construction. As of December 1991, a
total of $1,893,854.88 in eligible projects had been funded and
awarded for construction.
In 1994, the established Mello-Roos District AD #995 was found to
be in default in several properties. The city restructured to bond
issue by deleting undeveloped properties and those in default.
Additionally, through loans from the Economic Development
Department (EDA) and the creation of another assessment district
(AD # 987) funds were obtained for the completion of street
improvements on Palm Ave from Kendall Dr. to Verdemont Ave,
completion of a Traffic signal at Palm Ave. and Kendall Drive and
the construction of a box culvert at Palm Ave and Cable Creek and
the construction of the Chestnut Ave. storm Drain and Debris Basin
have been completed. The loan from the EDA provided for all costs
associated with the Chestnut Ave. storm Drain, 1/2 the costs
associated with construction of the Palm Ave. box culvert and
traffic signal. The loan total was $1,908,063.68 and carries an
interest rate of 5% per year. The loan is to be repaid, with
interest, as directed by the Mayor and Common Council.
In total, over $2,440,000.00 in improvements have been completed in
the Verdemont Area in addition to some limited development of
schools, single family development and other improvements to the
drainage system and street systems.
AMENDMENTS
As originally planned, the fee would adjust each year to reflect
changes is construction costs, wages, overall project costs,
construction completed and changes ln the land use in the
designated area. As originally proposed, the fee would have an
adjustment of 15% for the each of the first three years and 10% per
year for the next two years. However, AB 1600 requires that fees
be adjusted only in accordance with actual costs. The resolutions
establishing the fee provide for adjustment as often as necessary
with appropriate action by the Mayor and Common Council and as
supported by staff analysis of the costs.
California overall experienced a significant downturn in the
economy beginning in 1991. As a result, the City of San Bernardino
has seen development drop to 1/4 the level prior to the economic
downturn. Many of the projects were under construction and fully
funded prior to the downturn and have now been completed. As noted
in previous sections of the report, several of the developments
that formed the Mello-Roos district (AD #995) were unable to begin
their projects and have since gone into default which required the
restructuring of the bond sale that supported the Mello-Roos
district. with the exception of completion of tracts already
funded, there has been no significant development in the area and
no revenues to the Verdemont Infrastructure Fee.
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1540
Several developers representing the vacant land holdings, existing
developers with projects in the area and other interested parties
have contacted the city, through the Mayor's office and cited the
lack of development on several factors. Some of these factors
include higher participation of the developer in funding the
projects, lack of interest in the banking industry for residential
development, downturn in the market for high end housing, loss of
overall property values (the Assessor has reduced assessed value an
average of 22% on virtually all properties in San Bernardino
County) and the existence of existing assessment districts or fee
structures. They have presented documents for city consideration
that indicate the current level of the Verdemont Infrastructure
fee, combined with the present level of affordability in housing
has placed them in a position of being unable to construct a
marketable product on the land currently held.
Reduction of the Verdemont Infrastructure Fee would have the
positive effect of stimulating development in the area. After
review of the completed improvements, it has been determined that
the primary access, flooding and circulation problems have been
addressed and that a reduction in the fee would serve the community
interests by allowing stimulation of the economy. However, it
should be noted that rapid or uncontrolled construction, provided
the economy recovers, could cause adjustments in the fee to rise
significantly in future years.
By setting the fee at $1,500.00 per dwelling unit, it should be
noted that it is anticipated that the Mayor and Common Council will
suspend the refund portion of the Infrastructure Fee program for
development along the designated highway. Condi tions on the
developers wi thin the area may, of necessity be increased to
provide improvements at the time of development rather than funding
from the Infrastructure fee program. It is estimated that without
further adjustment, the $1,500.00 fee will still generate
$3,750,000.00 in revenue to address the goals of the ordinance.
Further, it is the desire of the Mayor and Common Council to give
preference in funding to the "Public Improvements" as noted in the
ordinance. The development community will be addressing some if
not all of the right-of-way improvements as conditions of
development and the city presently sees a need for the public
improvements provisions of the ordinance to be addressed.
CONCLUSION
It is the intent of the city of San Bernardino to stimulate
development within the city and this can be accomplished within the
Verdemont area with a reduction in the infrastructure fee. The fee
was originally established to insure certain improvements were
completed in a timely manner. Several projects have been completed
in the area and the circulation system, access points and storm
drain protection systems are greatly improved. New development
will still be conditioned to install improvements adjacent to their
projects and such other improvements as deemed necessary for
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orderly growth and the reduced infrastructure fee will still
generate significant revenue for necessary improvements. Altering
the payback provisions will insure that no more monies are returned
for street improvements installed by the developer. Further, it is
the intent of the city to address the public improvements portion
of the ordinance in preference to the right of way improvements as
many of the right of way improvements have now been installed or
other provisions have been made.
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