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HomeMy WebLinkAbout15-City Administrator , o 0 '.' COUNCILACrIOtICOR.....ItCE ~ .... ,.-..:.............:'.. .....>. .. ,....,.... '-, ...... ".. ".' _;,. .." - ':. .' ...... ,., "'0"" " , To' .-.... E.. ~ '~~.City~ om May 19. 1988 Subjlc:t AppI:l:Jval()f .Jo:lnt ('........."'\ity FacW.t1.es Di8trict~t for the pul:p08e ()fa1' ting draUlllp. ptob~in the mrth- west area of City of Co1tal .......O..MIIy 16, 1988 . AgIndlI ltern No. 2 ;,.};; '..;;..' \ , ~ ,) '1beMtlJoraldO...;..,CoID:i1 haw ..' .11-6. 1.~,At: q.'Vl . .... . . purpose of adopt a 1'e8Olution ~ .~. executiOn of a Joiil;t:~~ty/ .1'idlt1.es DlatrtCt'.ec.....d. w:Lththe City ,Of Coltchlrtii ordlerto a1.1eY1ate~prOb1eall1n the 1&I.,t1..Jelitarea of the City Of Colton. . . \)- S::kbb CC~ P1m1ic \hies/City .~ >17 / ;::::: '. ~ ~AUNA CLARK CltyQork -'~-, -.';;, . " IS -- ~ CITY OF SAN BERNCJ4DINO - REQUEST lOR C()UNCIL ACTION From: James E. Robbins Acting City Administrator Subject: Set Hearing -- June 6, 1988 at 9:30 a.m. -- approval of Joint Community Facilities District Agreement for ~he purpose of alleviating drainage problems in the northwest area of City of C'Qlto~ :rRf Dept: Administrative Date: May 6, 1988 Synopsis of Previous Council action: NONE. Racommended motion: That a hearing be scheduled for June 6, 1988 at 9:30 a.m. for the purpose of adopting a resolution authorizing the execution of a Joint Community Facilities District agreement with the City of Colton in order to alleviate drainage problems in the northwest area of the City of Colton. 1I~ ~A3 (j Signature Contact person: Roqer Hardqrave Phone: 5025 Supporting data attached: No Ward: FUNDING REQUIREMENTS: Amount: Source: (Acct. No.! (Acct, Descriotion) Finance: Council Notes: 75-0262 Am:mrl~ Itpm Nn Ii r lit: '-"0. IK l.jtf:J1 :- CITY OF SAN BERNCRDINO - REQUEST 'OR COUNCIL ACTION From: ROGER G. HARDGRAVE Subject: Authorization to Execute Joint Community Facilities District Agreement with City of Colton ---Establishment of Communit Facilities District No. 88-1 Public Works/Engineering Dept: Date: 4-28-88 Synopsis of Previous Council action: None. Racommended motion: Adopt resolution. cc: Jim Robbins Jim Penman Jim Richardson Contact person: Roger G. Hardgrave Staff Report, Map and Agenda Report Phone: Supporting data attached: Ward: 5025 3 FUNDING REQUIREMENTS: Amount: N/A Source: (Acct, No,) (Acct, DescriPtion) Finance: Council Notes: 75-0262 Agenda Item No, ':'CITY OF SAN BERNODINO - REQUEST FCJI COUNCIL ACTION STAFF REPORT Page 1 of 2 The Forecast Corporation owns property south of Mill Street, and east of the Southern Pacific Railway, as shown in the attached map. The northerly half of this property is within the City of San Bernardino, and the southerly half is within the City of Colton. Colton has experienced severe flooding problems in this general area. Development of Tract No. 13457 in the City of San Bernardino would aggravate this problem by increasing the amount of storm water runoff. In order to solve the flooding problem in this area, Colton and Forecast have jointly developed a proposed storm drain project. This p~oject would install a 48 - 84-inch storm drain along Randall Avenue, from the Forecast property to the Lytle Creek Flood Control Channel. Funds to finance the cost of this storm drain project will be derived from a variety of sources. One of these sources is the proposed Community Facilities District under the Mello _ Roos Act. This district will be placed on all of Forecast's property, both in Colton and San Bernardino. Execution of the Joint Community Facilities District is needed to authorize Colton to act as Lead Agency and establish the District, which will levy a special tax upon the lots in San Bernardino. The tax on lots within San Bernardino will be used solely for the cost of the major drainage improvements, and will not exceed $661 per dwelling unit per year. The special ~ax on lots within Colton will also be used for park and street improvements, and police protection services. This tax shall not exceed $759 per dwelling unit per year for lots within Colton. Buyers will be required to sign a statement that they are aware of the Community Services District and the special tax that will be included on their property tax bill, until the debt in- curred for major drainage improvements is repaid. Leslie Keane, Assistant City Manager, has indicated that this provision could be added to the agreement if desired. An inquiry was made if ,the storm drainage fees, collected from Tract No. 13457, could be applied against the cost of the storm drain, in order to reduce the special tax levied against lots within San Bernardino. A formal request will be forthcoming from Colton. Establishment of the Community Services District will mitigate environment impacts from flooding, and avoid comments from Colton that approval of Tract No. 13457 will worsen their flooding problems. 4-28-88 75-0264 .. CITY OF SAN BERNG'DINO - RIIQUIIST FOR COUNCIL ACTION STAFF REPORT Page 2 of 2 A copy of Colton's Agenda Report, for the Council Meeting of 4-05-88, is attached for reference. We recommend that authorization to execute the Joint Community Facilities District Agreement be granted. 4-28-88 75-0264 . ~ ~ I.I~' ~I~ .., _'M. :.,.......,;"., '1.,~.1 1'IIlII""I' L.. ,.. . ;.. ,,' :! : ,. ,;: 1+ "d..,~"~,,C ,,;,;.... ,~I!:;~..,. I~"' "'4"':'1"'.,. <n '0' ''.;',:to;.'ij. :~;~. f" ,. . "~'1"':"'."'--'~I"\.1 ",-L.:;tG- 1h".i:~;~.'1 .,l '.1 .. .. h" If If.:'..., :'. .. I I ,..._. __.; ;A.: ......~, . . '.' .' ,4.-- . ...~' . it -. "'.;: '"i",::-:... -.::.__;... I~,: ~~..~ ,~.,ll~I~~,.;..: Ii Ii ,..;r~il'~":','" ~~.;~~,,:~.,:~._,r ~..lg~}11~ 1'\. ~,-"~ 1;... . ~ -;;yo:, In Ii. 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':-r: '11~ '~lT . ::.. ~'. ;~.r' "", ,...t . . ~1' ~fff '&l!~l'~~~' ',',"'-' .:~ -!-" I It r.::- ~~;~ A'J!Yl~. I .J ...... ~I~ I' r.'''-Jn .. I ~ ..~ L....:t-. ~ :. t III i 1r:..~I'_ -~~ -t- . "liVO --- iii J~~:- 1"". ;:I.:~q : ! ~: ~.t~ I l....!....1, :Ie ~ - - I .~. ". lA, p.. ..... '.. .. , ~ JAI"O.t "., W. 1.. 'Y .. ~. I '.. A'. liSt: l^IW -10... '''",] I : -i~ --14eC'~ l ,J: l . - ;;'~:i I, '\1 ,. ": ~ ~ . i':, .1'-I'S..^Y :~r.~':.':~ 1 1l" ' I 0: ~_. " , , I" '" '/(1 r .. ....-,1 "1",- ..... .' I~;.~,~ "'" ...","'" . '. oJ. l~#' ,. II' ., ~ ; ..I.h' s 1"- '..t..--Io>,. I ""I': .:., "~. f. J~~L .. J, ;17' I' .w I ; :1: t{"" 0 - I. "..." '_ '1..~", ~':'ii · ~ -.w~........ ,.....1"1 tol/l' I I " nM.-:'t".,": \J. _I .. ~., A,~.Lnl'" ..','21 ... , , I.J " 4/28/88 ,CITY OF COLTON o AGENDA REPORT 0 For Council Meeting of April 5, 1988 Honorable Mayor and City Council v!J ./ ~ROM: Leslie A. Keane, Assistant City ManagerC7~v-' SUBJECT: RESOLUTIONS R-26-88 AND R-27-88 AUTHORIZING Date: 3/29/88 INITIATION OF A MELLO-ROOS COMMUNITY FACILITIES DISTRICT IN A PORTION OF THE NORTHWEST AREA OF THE CITY OF COLTON TO: BACKGROUND: In the northwest area of the City, commonly referred to as the Old Colton planning area, there are significant flooding and drainage problems. Although a majority of this ar~ is already developed, there are approximately 47 acres in the ~inity of Meridian and Laurel Streets which are currently undeveloped. Forecast Mortgage Company has a purchase option on this land and an adjacent 48 acres in the City of San Bernardino. They wish to build approximately 350 single family homes on this property. Among the conditions of approval of the tentative tract maps for the Colton property is a requirement that the developer provide drainage improvements which will not only handle the runoff generated by their project, but which will also significantly mitigate current flooding problems in the surrounding area. In early 1986, the City entered into an agreement with Forecast to build a portion of the Citrus Street storm drain. This drainage facility is required to mitigate serious current and projected flooding problems in the northwest area of the City. It was anti- cipated that 2,420 feet of the required 7,000 foot storm drain would be completed" with the developer and the City sharing the cost. The agreement, a requirement for construction of 113 homes in Tract 13126, specified dollar amounts to be contributed by each party. When Forecast contracted for the actual construction of the facility, after the construction of its homes, they discovered they were able to build only 962 feet of the drain with monies available. Work under this agreement has been completed and the Citrus storm drain is in place from Lytle Creek to Eighth Street. The cost estimate for tr~ remaining portion of the drain is approximately $2.6 million. In addition, a portion of the remaining Forecast project will not drain into the Citrus Street facility. It is necessary to construct a smaller drain in the County of San Bernardino from Laurel to the corner of Stevens and Grand to serve this area. The cost for this portion of the drainage solution is estimated at $124,000. Forecast has approached the City with a proposal for a subdivision agreement which would allow for phased construction of the required improvements, and which would provide for public financing assistance for a portion of the project. Attachments: Page 1 of 5 Item No, 4/28/88 CllY, OF COLTON AGENDA REPORT QONTINUEDI FOR COUNCIL MEETING OF Apr i 1 5, 19 B B SUBJECT: RESOLUTIONS R-26-BB AND R-27-BB AUTHORIZING INITIATION OF A MELLO-ROOS COMMUNITY FACILITIES DISTRICT IN A PORTION OF THE NORTHWSST AREA OF THE CITY OF COLTON o As the City Council is aware, the current rate of residential growth in the City is making it increasingly difficult not only to provide for the required infrastructure but also to continue to provide for basic public services such as pUblic safety and street maintenance. Property taxes represent only a small percentage of the City's General Fund budget and residential growth, at least, initially costs the City much more than it brings in revenue. During the last year, staff has been investigating a number of enhanced and potential new revenue sources. One of the options available is the formation of Mello-Roos Community Facilities Districts (CFD) in developing areas of the City. Similar in concept to assessment districts, a CFD allows the City to levy an ongoing tax for the construction of public facilities and for maintenance and service costs. CFD's must be approved by a 2/3 vote of either property owners (in undeveloped areas) or registered voters~The City initiated its first CFD in a portion of the West Valley earlier this year. Forecast is agreeable to such a proposal, and it is anticipated that they will be the sole property owner prior to any election to form an actual district. SUBDIVISION AGREEMENT: Forecast is proposing that the construction of the drainage improve- ments required for their project be phased, with actual drain and building construction occurring concurrently. City staff and special legal counsel, Rutan and Tucker, have drafted the attached two Sub- division Agreements to outline the responsibilities and actions required of the developer and the City with respect to a phased pro- ject approach. Although some of the language, dates and dollar amounts require further modification, all of the major issues have been identified and resolved in the attached drafts. The agreements must both be signed by the City and the property owner prior to final map recordation of any of the tract maps. The developer wishes to initiate construction of the Laurel Street drain at the same time as they begin actual construction of the homes in Tracts 13451-54 which will flow into this drain. The remaining homes in the project will flow into the Citrus Street drain which will be constructed by the City once bonds are sold. Staff is concerned about increasing the runoff and flooding in this area of the City prior to the completion/operation of both drains. To minimize this problem, we are proposing that construction on the Laurel Street drain be completed within four weeks of the issuance of grading permits. The developer will bond for and construct this facility; if not completed as specified, the City may draw on the bonds and cause the project to be completed. Page 2 of 5 Item No, , .' CITY PF COLTON AGENDA REPORT Q,NTlNUEOJ o FOR COUNCIL MEETING OF April 5, 1988 SUBJECT: RESOLUTIONS R-26-88 AND R-27-88 AUTHORIZING INITIATION OF A MELLO-ROOS COMMUNITY FACILITIES DISTRICT IN A PORTION OF THE NORTH- WEST AREA OF THE CITY OF COLTON The current timeframe for the construction of the Citrus Street drain is projected to be in November - January 1989, which is during the rainy season. It may be possible for the developer to construct interim drainage facilities while the City completes construction of the permanent facility. They would be required to construct such facilities at their own cost and prior to any permits being issued for construction of off-site or on-site improvements for the residential units which will flow into this drain. The City would also not issue certificates of occupancy for the homes until such time as the permanent facility is operational. As a part of the subdivision agreements, the developer has agreed to waive the statutory timeframes required to form a CFD and to waive their right to protest district formation at the required public hearing. Since approximately half of the property in the proposed district is within the City 1i.mits of San Bernardino, it will be necessary for that City to participate in district formation. Subject to successful negotiation with San Bernardino, staff would propose to return to Council with a resolution of intention to form CFD 88-1 in May and the public hearing and election in June. Forecast will construct the Laurel Street storm drain regardless of whether or not a CFD is actually formed. They will not, however, receive any cer'tificat.es of occupancy for Tracts 12451-54 until after the district election has been held. If the CFD is formed and Sufficient bond proceeds are available, the City will construct the Citrus Street storm drain. If the district is not formed or if sufficient bond proceeds are not available, Tracts 13455 and 13456 in Colton will not be developed unless agreement on an alternative method of funding the required improvement is reached. We will request the City of San Bernardino to take similar action with respect to the development of the 48 acres within their City limits. MELLO-ROOS COMMUNITY FACILITIES DISTRICT: Staff is recommending that the City proceed with the formation of a CFD, encompassing approximately 95 acres in the Cities of Colton and San Bernardino, as identified on the attached boundary map. With the tax-assessments received through this process, we would propose to fund: 1. Construction of the Citrus Street storm drain 2. Construction of a soccer field in the adjacent Davis Park (Colton taxes only). 3. Rehabilitation of Colton public area streets on a five-year schedule (Colton taxes only). 4. Operation of an additional Colton police patrol car dedicated to this area (Colton taxes only). Page 3 of 5 Item No, CITY OF COLTON AGENDA REPORT QONTlNUEDI FOR COUNCIL MEETING OF Apr i 1 5. 1988 SUBJECT: RESOLUTIONS R-26-88 AND R-27-88 AUTHORIZING INITIATION OF A MELLO-ROOS COMMUNITY FACILITIES DISTRICT IN A PORTION OF THE NORTH- WEST AREA OF THE CITY OF COLTON o The rate proposed for residential assessments in Colton is designed to, in conjunction with property tax and other special assessments, not exceed 2% in the year of formation. The rate proposed in San Bernardino is desinged to fund only the construction of the storm drain facility. ~l special tax rates may be increased by not more than 2% each year. Since the proposed district area is currently undeveloped, the Cities of Colton and San Bernardino must conduct an election of the property owners. Since Forecast is the single owner, they will cast all of their votes (one per acre) for or against the district. If the vote is favorable, we may proceed to sell bonQs to construct public facilities and to levy assessmetns to fund debt service and other proposed services within the district. If the Council wishes to proceed with formation of a CFD in the areas identified in the proposed boundary map, we. wi.ll ask the Ci.ty of San Bernardino to enter into a joint community facilities district agreement, which will allow Colton to act as the lead agency in all formation and administration proceedings. A draft agreement is attached to this report. Once both Cities have signed the agreement, Council may schedule a public hearing to allow any interested person the opportunity to communicate verbally or in writing, in favor of or in opposition to, the proposed district. Following the public hearing, Council may decide to proceed or not with formation. If Forecast files a protest, the proceedings are automatically halted. Since, however, it is not possible for Forecast to proceed with their develop- ment without public financing assistance, they have agreed to wai.ve their right to protest at the public hearing by their signature on the subdivision agreements. If Forecast has not purchased property in the proposed district by the time of the public hearing, the current owner, Southern Pacific Railroad, may protest the proceed- ings and they would be automatically halted. CONCLU S ION: , Colton has a significant flooding problem in the northwest area of the City. This situation will be further aggravated by further con- struction in either Colton or the adjacent area of the City of San Bernardino. Forecast Mortgage Corporation desires to construct approxi- mately 350 single family homes in the vacinity of Meridian and Laurel Streets. They have offered to cooperate with the City in the forma- tion of a Mello-Roos Community Facilities District designed to pro- vide monies for the construction of a major storm drain facilit~which will mitigate the drainage needs of both their project and the surround- ing areas. The proposed district will also provide funding for on- going public safety and street maintenance services. The attached subdivision agreements will assure that this area does not develop Page 4 of 5 Item No. , 'CITY'OF COLTON AGENDA REPORT QNTlNUED) o FOR COUNCIL MEETING OF April 5. 1988 SUBJECT: RESOLUTIONS R-26-88 AND R-27-88 AUTHORIZING INITIATION OF A MELLO-ROOS COMMUNITY FACILITIES DISTRICT IN A PORTION OF THE NORTH- WEST AREA OF THE CITY OF COLTON without the required drainage facilities. RECOMMENDA T IONS: Staff recommends that the City Council: 1. Authorize the Ci.ty Manager to finalize and execute the attached two subdivision agreements. 2. Adopt two resolutions, initiating proceedings to form Community Facilities District No. 88-1, titled as follows: A. RESOLUTION NO. R-26-88 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLTON, CALIFORNIA, ADOPTING BOUNDARY MAP SHOWING PROPERTIES AND LAND TO BE SERVED BY CERTAIN CAPITAL FACILITIES IN A COMMUNITY FACILITIES DISTRICT AND B. RESOLUTION NO. R-27-88 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLTON, CALIFORNIA, APPROVING PROPOSED JOINT COMMUNITY FACILITIES DISTRICT AGREEMENT AND REQUESTING APPROVAL AND CONCURRENCE Page 5 of 5 Item No o o 1 RESOLUTION NO. 2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A JOINT COMMUNITY FACILITIES DISTRICT 3 AGREEMENT WITH CITY OF COLTON. 4 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 5 SECTION 1. The Mayor of the City of San Bernardino is 6 hereby authorized and directed to execute for and on behalf of i said City a Joint Community Facilities District Agreement with 8 the City of Colton for initiating proceedings for Community 9 Facilities District No. 881-1, a copy of which is attached hereto 10 as Exhibit "A" and incorporated herein by this reference as though 11 fully set forth at length. 12 I HEREBY CERTIFY that the foregoing resolution was duly 13 adopted by the Mayor and Common Council of the tity of San 14 Bernardino at a meeting thereof, held on this 15 16 wit: 17 18 19 20 21 22 23 day of , 1988 by the following vote, to AYES: Council Members NAYS: ABSENT: City Clerk The foregoing resolution is hereby approved this ___day 24 of , 1988. 25 Approved as to form and 26 legal content: Evlyn Wilcox, Mayor City of San Bernardino 27 City Attorney 28 4/28/88 ~ o o Exhibit "A" JOINT COMMUNITY FACILITIES DISTRICT AGREEMENT THIS AGREEMENT is made and entered into this day of , 1988, by and between the CITY OF COLTON, CALIFORNIA ("COLTON"), a municipal corporation of the State of California, and the CITY OF SAN BERNARDINO, CALIFORNIA ("SAN BERNARDINO"), a municipal corporation of the State of California. WHEREAS, COLTON at this time is considering the initiation of proceedings for the formation of a community facilities district pursuant to the provisions of "Me110-Roos Community Facilities Act of 1982", being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, said community facilities district to be known and designated as COMMUNITY FACILITIES DISTRICT NO. 88-1 (hereinafter referred to as the "District); and, WHEREAS, the District contemplates the construction and financing of certain major drainage improvements, together with appurtenances and appurtenant work in connection therewith, which capital public facility will serve and benefit properties not only within the incorporated limits of COLTON but also within the incorporated limits of SAN BERNARDINO; and, WHEREAS, at this time COLTON and SAN BERNARDINO are desirous to enter into a Joint Community Facilities District Agreement to set forth the terms and conditions to allow the proceedings to go forward and authorize special taxes to be levied on all property within the boundaries of the proposed District. NOW, THEREFORE, IT IS MUTUALLY AGREED BETWEEN THE PARTIES AS FOLLOWS: SECTION 1. COLTON shall continue to conduct all proceedings, including the publiC hearing and election, as necessary for formation of a community facilities district pursuant to the provisions of the "Me110- Roos Community Facilities Act of 1982", being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California. SECTION 2. SAN BERNARDINO does hereby expressly grant such jurisdiction to COLTON as is necessary for COLTON to conduct said proceedings, hold the publiC hearing, conduct the election, and to levy special taxes on properties within the boundaries of the District, including those properties within the incorporated limits of SAN BERNARDINO in the amounts and under the terms as herein set forth. JFW:ss 5-26-88 1 . . " SECTION 3. SECTION 4. SECTION 5. JFW:ss 5-26-88 o o Pursuant hereto, the properties within the boundaries of the District within the incorporated limits of SAN BERNARDINO will be obligated only to pay special taxes for their proportionate share of the costs and expenses of the Citrus Street storm drain, which proportionate share is hereby a greed to be % of the cost of such dapital improvementS:- Said properties shall not be liable or responsible for any special taxes for any new and additional services or other facilities as proposed to be levied within the District. The works of improvement and facilities as proposed to be constructed under the proceedings for the District are generally described as follows: A. THAT PORTION FOR WHICH SPECIAL TAXES SHALL BE ASSESSED AGAINST PROPERTIES IN THE CITY OF COLTON AND CITY OF SAN BERNARDINO: The construction and installation of a major drainage improvement designated CITRUS STREET STORM DRAIN, commencing at the intersection of Citrus Street and Eighth Avenue, extending westerly approximately 6200 feet to a point Easterly of the Southern Pacific RailrOad right-of-way (66" pipe to 36" pipe). B. THAT PORTION FOR WHICH SPECIAL TAXES SHALL BE ASSESSED AGAINST PROPERTIES IN THE CITY OF COLTON ONLY: (1) The construction of certain park improvements, consisting of landscaping, irrigation and appurtenant work to the designated Soccer Field Area; (2) The construction of necessary street paving and resurfacing to streets within the boundaries of the District. The services proposed to be financed under these proceedings are generally described as follows: Necessary and additional pOlice protection services to serve the properties within the boundaries of the District within the incorporated limits of the City of Colton. Properties within the City of San Bernardino shall not be assessed, either directly or indirectly, for the cost of such additional services. 2 SECTION 6. SECTION 7. JFW:ss 5-26-88 c o It is proposed that bonds will be issued to finance the costs and expenses of the proposed public capital facility ,construction and incidentals in an amount NOT TO EXCEED $3,000,000.00. Properties within the City of San Bernardino shall be subject to maximum liability for such bonds not to exceed $ The rate, method and apportionment of the maximum annual special tax is set forth as follows: CATEGORY OF LAND USE Residential which has been improved with dwelling units in the City of Colton Residential which has been improved with dwelling units in the City of San Bernardino Residential which has been subdivided into recorded lots but has not been improved with dwelling units in either San Bernardino or Colton Residential for which a tentative tract map has been approved in either San Bernardino or Colton All of other categories of land use in either San Bernardino or Colton MAXIMUM SPECIAL TAX AMOUNT i $759 per dwelling unit but not less than $2644 per acre $661 per dwelling but not less than $2644 per acre $661 per recorded lot but not less than $2644 per acre $661 per approved tentative lot but less than $2644 per acre $2644 per acre The above taxes shall be applicable commencing in the fiscal year 1988/89. Special tax assessments on properties within the City of San Bernardino made pursuant to this agreement shall not be increased during the life of the obligation. Taxes on properties in the City of San Bernardino shall be levied for the lesser of 20 years or until accumulated payments in an amount equivalent to principal and interest for financing utilized to pay the proportionate share of the 3 SECTION 8. SECTION 9. JFW:ss 5-26-88 o o cost of the construction of the Citrus Street storm drain, as set forth hereinabove, has been collected from such properties. APPLICATION OF TAX Any authorized park improvements, street pavement and resurfacing and additional pOlice services shall be annually funded exclusively from special taxes received from properties within the City of Colton. Payment of such costs shall not be made from any taxes assessed hereunder until after the payment for all costs and expense, including principal and interest, necessary for payment on any outstanding bonds for the Citrus Street storm drain. Upon the approval of this Agreement, all future proceedings for the formation of the District shall be held and conducted by COLTON, and SAN BERNARDINO does hereby expressly consent and jointly agree, through execution of this Agreement, to allow the proceedings to go forward and authorize the special taxes to be levied on the properties within the boundaries of the District lying within the incorporated limits of SAN BERNARDINO in the manner and in the amounts as herein set forth. Notice to Homebuyer It is contemplated that the obligation created hereunder will be ultimately assumed by purchasers of single-family dwellings. In addition to any other Notice required by law, each initial purchaser of such single-family dwelling within the City of San Bernardino shall be required to sign a statement declaring that they are aware of the Community Services District and the special tax provided thereby. Such purchaser shall specifically acknowledge their awareness of the inclusion of such tax in their property tax assessment. Such purchaser shall be advised of the amount of their first year special tax obligation and shall be provided with a schedule showing the anticipated annual requirement during the life of the obligation. 4 . SECTION 10. SECTION 11. SECTION 12. c o In any action arising from a failure to provide such notice or from questions of the accuracy of the representations contained therein, the City of Colton shall indemnify the City of San Bernardino in the manner set forth at SECTION 10 below. COLTON does hereby agree to indemnify and hold SAN SAN BERNARDINO harmless for any actions, acts or activity as it relates to the conducting of the proceedings, holding the public hearings and election, and issuance and sale of bonds for these proceedings for this District. This Agreement shall be null and void if the District has not been established within three (3) years of the date of final approval and execution of this Agreement. This Agreement constitutes the entire agreement between the parties hereto and any amendments or additions hereto shall be in writing. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first hereinabove written. ATTEST: CITY OF COLTON MAYOR CITY OF COLTON CITY CLERK CITY OF COLTON STATE OF CALIFORNIA ATTEST: CITY OF SAN BERNARDINO CITY CLERK CITY OF SAN BERNARDINO STATE OF CALIFORNIA MAYOR CITY OF SAN BERNARDINO STATE OF CALIFORNIA APPROVED AS TO FORM AND LEGAL CONTENT: JFW: 55 c:;,_')I:_QQ City Attorney 5