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HomeMy WebLinkAbout19- Public Works CITY OF SAN BERNARDINO - REQUEST FOR COUNC_ AC' File Nc 20.02-1 Set Public H-ari-na - Adjustnent From: ROGER G. HARDGRAVE Subject: of Verdemont Area Infrastructure Dept: Public Works Fee from $7 . 699 to $1 ,500 Date: 1-18-95 Synopsis of Previous Council action: 12-04-89 - Ordinance MC 690 adopted levying an infrastructure. 01-03-90 - Ordinance MC 695 adopted extending effective date of Ordinance MC 690 . 01-03-90 - Resolution 90-2 adopted. r���,_s'_ng the amount of an infrastructure fee to be l��vie,d. 06-25-90 - Resolution 90-253 ,�?� �'-��'. revising the amount of the infrastructure fee to be levied, from $7 , 375 to $6 ,068 due to deletion ­` water system. 01-07-91 - Resolution 91. 01 adopted revising the amount of the in- frastrunt:un� to be levied, from $6 , 068 to $6 ,976 . 03-02-92 - Resolu'-4.-r. 02--87 adopted revising the amount of the infrastructure fee to be levied, from $6 , 976. to $7 , 699 . Recommended motion: That a public hearing be set at 10: 00 a.m. , for the regular scheduled Council meeting of 2-20-95 , to consider adjustment of the Verdenont Area Infrastructure Fee fron $7 , 699 to $1 , 500. cc: Shauna Clark Jim Penman -O91Y . "'F ICEJ Barbara Pachon Signature Contact person: Gene R. Klatt Phone: 5125 Supporting data attached: Staff Report Ward: 5 FUNDING REQUIREMENTS: Amount: N/A Source: (Acct. No.) (Acct. Description) Finance: Council Notes: 75-0262 Agenda Item No. Z-G `fS- CITY OF SAN BERF" 1RDINO - REQUEST 1R COUNCIL ACTION STAFF REPORT Page 1 of 2 In response to concerns of residents, relative to the lack of certain infrastructure items within the street rights-of- way, a Verdemont Area Infrastructure Fee was adopted in December, 1989 . The purpose of this fee was to provide advance funding to finance the construction of critically needed street infrastruc- ture improvements. Provision was also made for financing public improvements , as identified by the Mayor and Council. The fee was initially set at $6 , 068 per equivalent dwelling unit, with projected annual increases of 15% for the first three (3) years, and 10% for the next two (2) years. Construction of the critically needed street improvements has been accomplished, through Assessment District No. 987 and revenue received from the Verdemont Infrastructure Fee. The majority of the revenue was generated through Community Facilities District No. 995 , that included seven (7) properties. Community Facilities District No. 995 has experienced a significant number of defaults. A refinancing plan has been de- veloped, in order to relieve the home owners from having to pay additional taxes. However, the undeveloped parcels will be required to pay the Verdemont Infrastructure Fee upon develop- ment. The owners of the undeveloped properties in the Verdemont Area have requested that the fee be reduced, in order to stimulate development. Since the critically needed items of infrastructure have been constructed, we concur with this request. A developer is entitled to be reimbursed, for actual costs incurred for installing street improvements on the major streets, under the current program. Reimbursements are paid from the Verdemont Infrastructure Fee Fund. No provisions will be made for reimbursements under the reduced fee. iSince the critically needed street improvements have been completed, we concur with the property owners ' request to reduce the fee. We recommend that the fee be reduced to $1 ,500 , and be used to finance public improvements, as determined by the Mayor and Council, through the Capital Improvement Program. It is estimated that the adjusted fee will generate an amount of $3 ,750 , 000 . 00 in revenue, upon build out of the Verdemont Area. We recommend that a public hearing be set for the regular scheduled Council Meeting of 2-20-95 . 1-19-95 75.0264