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File No. 14.40-39
CITt.oF SAN BERNARDI~ - REQUE~ FOR COUNCIL ACT~N
From:
ROGER G. HARDGRAVE, Director
Subject:
Proposed Assessment District for Cable
Lake Development -- Frontage Road
Along Route 215, North of Little League
Drive
Dept:
Public Works/Engineering
3-21-85
Date:
Synopsis of Previous Council action:
3-19-85
City Clerk directed to place an item on Council.Agenda of 4-1-85
for discussion of a 1911 Act Assessment District as a method of
financing required off-site improvements for Cable Lakes Development.
Recommended motion:
That the report on advantage and disadvantages of 1911 and 1913/15 Assessment
Districts, for financing required off-site improvements for Cable Lakes
Development, be accepted and filed.
cc: John Matzer Jr., City Administrator
cA ~~_.
Signature
Contact person:
Verne Nadeau
Phone:
5026
5
Supporting data attached: Staff Report
Ward:
FUNDING REQUIREMENTS:
Amount:
N/A
Source:
Finance:
Council Notes:
75-0262
Agenda Item NO.'? ."z,
Jt0
ILJjllJl ~ i
Clft OF SAN BERNARDQO - REQuQsT FOR COUNCIL ~ION
STAFF REPORT
The Cable Lakes Development is compri sed of about 100 acres. The
Tentative Map for Tract 12756 was approved by the Planning Commis-
sion on 3-6-85. This map covers about 20 acres, and will create 114
lots. The owners plan to submit an application in the near future
for a tentative map on the remaining 80 acres. This map will create
about 451 lots.
A petition has been submitted to our office by the owners for a
1913/15 Act Assessment District to be created for this development.
We are deferring presenting this petition for authorization to
proceed until direction is received from the Mayor and Council on
which act is preferred.
The act normally used to finance improvements for large undeveloped
parcels is the 1913/15. This is due to the difficulty in selling
1911 Bonds for thi s type of project. It has been suggested that a
1911 Act bond could be sold to an underwriter, such as Miller and
Schroeder, who would sell certificates of participation. Mr. Jim
Iverson, of Miller and Schroeder, has indicated that this suggestion
appears to have some merit, but they will need to research the
matter to ascertain if the procedure is legal and the bonds
saleable. It is not known how long it will take to complete the
re sea rc h.
In the event we are able to utilize this method, we would expect to
make arrangements with our underwriter and set forth these conditons
in the special provisions. Bidders will then know the conditions
under whi ch they can sell the 1911 Act Bond.
A 1911 Act Bond is placed on each parcel. If a 1911 Act District
was established prior to recordation of the tract maps, the bond
would have to be reissued as 565 separate bonds upon recordation of
the maps. This would entail a large administrative effort for the
City Treasurer and our office.
Li sted below, for your consideration, are some advantages and
disadvantages of each type of district.
1911 ACT
--
Advantages:
1. No possible liability to City.
Di sadvantages:
1. Research needed to determine if bond is saleable.
2. Either defer until tract maps recorded or incur substan-
tial administrative effort in issuing new bonds.
-1-
75-0264
"Jilln till
CI~ OF SAN BERNARDQO - REQUaT FOR COUNCIL ~ON
STAFF REPORT
1913/15 ACT --
Advantages:
1. Well established method.
2. Can proceed immediately.
Disadvantages:
1. Possibility of City incurring liability.
Each act has its own advantages and disadvantages. Therefore, it is
necessary each proposed assessment district be researched to determine
which act is appropriate.
-2-
75-0264
""11'1 lL "
CI'IO OF SAN BERNARDIO) - REQUOT FOR COUNCIL A<QION
From: Shauna Clark, City Clerk
Subject: Cable Lakes Project - Use of
1911 Assessment District as a
financing alternative
Location: North of 1215, north-
west of Little League Drive
Dept: City Clerk
Date: March 20, 1985
Synopsis oJf Previous Council action:
11/7/84, 1/21/85,
2/18/85 - Public hearing held to consider use of Mello-Roos
Community Facilities Act for financing incentive -
Cable Lakes Project. .
2/18/85: - Mello-Roos rejected by Council. ,
- Redevelopment Agency staff directed to explore
financing alternatives including an assessment
district.
3/19/85: - City Clerk instructed to include 1911 Act Assess-
ment District on April 1 agenda for discussion as
financing method for Cable Lakes Project.
RecommenoJed motion:
(For discussion - motion to be developed by Council)
~N#4/~-'
./ Signature
Contact person:
Phone:
Supporting !lata attached:
Ward:
Five
FUNDING REQUIREMENTS:
Amount:
Source:
Finance:
Council Notes: