HomeMy WebLinkAbout43-City Administrator
CITY OF SAN BER"'ARDINO - REQUEST h)R COUNCIL ACTION
From: I!RED A. WILSaiI, Assistant to the
City AdIIIinistrator
Dept: CIn' ALfIINIS'mATCR
Date: 4/30/90
Subject: pR<lQfnrICIi/ ESTABLISHING A IA\N ~
FCE SEWER CAPACIn' RIGBTS FEE FCE
~IFYING RESIDJ;N.1'S.
Synopsis of Previous Council action:
4/5/90 - Legislative Review Camri.ttee reo....-.:It,.] that the loan pr"':lL_
for the sewer capacity rights fee be established.
Recommended motion:
Adopt resolution.
Signature
Contact person:
FRED A. WILSaiI
Phone:
5122
Supporting data attached:
YES
Ward:
1-7
FUNDING REQUIREMENTS:
Amount:
Source: (Acct. No.)
(Acct. DescriPtion)
Finance:
Council Notes:
75-0262
Agenda Item No. 43
CITY OF SAN BERN HDINO - REQUEST F R COUNCIL ACTION
STAFF REPORT
The Legislative Review Committee at their
meeting, approved the establishment of a loan
sewer capacity rights fee for qualifying City
April 5, 1990
program for the
residents.
This loan program was developed at the request of the
Legislative Review Committee in response to concerns
identified by residents who were unable to pay the sewer
capacity rights fee which is currently set at $2,260.00. The
Council Office had received requests for assistance from
homeowners who were planning to connect to the sewer system
due to problems with on-site septic tanks and, for various
reasons, could not pay this mandatory fee.
Although residents meeting Community Development Block Grant
elderly and low income eligibility criteria are eligible to
receive either grant or loan funding to assist with this fee
as well as the other associated sewer connection costs, the
residents requesting assistance in these cases generally had
income brackets which exceeded the Block Grant income
criteria levels.
The proposed program was structured to assist homeowners
which were not eligible for Block Grant funding.
The loan program will be structured as followed:
1. The 270 remaining sewer capacity rights owned by
the City would be used as the pool for this
program.
2.
Only residents who
service charge for
will be eligible for
have paid a monthly sewer
a period of 10 years or more
the loan program.
3. The loan amount shall only be to offset the cost of
the sewer capacity rights fee.
4. The maximum term for repayment of the loan shall be
5 years.
5.
Interest will be assessed on the
annually at a rate which equals the
rate of return on investments. The
will be determined at the time
processed.
6. The loan will be secured by a trust deed on the
property. The loan and deed of trust will provide
that if the property is sold prior to payment, the
remaining balance will be due and payable.
unpaid balance
city's annual
interest rate
the loan is
7. Payments shall be made to the City Clerk's Office
semiannually until paid in full. (Based on a 9%
75-0264
interes~ rate
$285.62).
the semiannual ~uyment will be
8. The loan program will be administered by the City
Clerk's Office. An administrative fee of $85.00
will be charged for processing each loan.
e..-
ED A WILSON,
Assistant to the
city Administrator
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RESOLUTION NO.
RESOLUTION OF THE CITY OF SAN BERNARDINO ESTABLISHING A
LOAN PROGRAM FOR SEWER CAPACITY RIGHTS FEES FOR QUALIFYING
RESIDENTS.
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Whereas, there are residents of the City of San Bernardino
who have paid a sewer service charge for years without being
connected to the City sewer system, and
WHEREAS, some of these residents must now connect to the
sewer system and pay Sewer Capacity Rights fees as well as
connection fees, and
WHEREAS, some of these residents are on fixed or low
incomes, but do not meet the income eligibility criteria to
qualify for a Community Development grant;
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1.
A five year loan program for Sewer Capacity
Rights Fees is hereby established for the 270 remaining sewer
capacity rights owned by the City for residents meeting all of
the following criteria:
a)
The owner is an occupant of the single family residence
for which the sewer capacity rights fees are due.
b)
Owners of the residence have paid a monthly sewer service
charge for a period of ten (10) years or more.
SECTION 2.
The loan will be for a period not to exceed
five (5) years and shall be secured by a trust deed on the
property.
The loan amount shall be for the amount of the costs
of the sewer capacity rights fees plus interest.
Payments shall
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be made to the City Clerk's Office semiannually until paid in
full. The per cent of interest to be assessed on the loan shall
be determined at the time the loan is processed and shall be
based on the City's annual rate of return on investments as
determined by the City Treasurer.
SECTION 3. The loan program shall be administered by the
City Clerk's Office which shall establish procedures for
processing the loans. An administrative fee of $85.00 shall be
charged for processing each loan.
SECTION 4. The loan and deed of trust shall provide that
if the property is sold or otherwise transferred prior to the
full payment of the principal and interest, the remaining balance
shall be due and payable.
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RESOLUTION OF THE CITY OF SAN BERNARDINO ESTABLISHING A
LOAN PROGRAM FOR SEWER CAPACITY RIGHTS FEES FOR QUALIFYING
RESIDENTS.
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at a meeting thereof, held on the
day of , 1990, by the following vote, to wit:
Council Members:
AYES
NAYS
ABSTAIN
ESTRADA
REILLY
FLORES
MAUDSLEY
MINOR
POPE-LUDLAM
MILLER
City Clerk
The foregoing resolution is hereby approved this
day
of
, 1990.
W. R. Holcomb, Mayor
22 City of San Bernardino
23 Approved as to
form and legal content:
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JAMES F. PENMAN,
City Attorney
By: IJi:
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