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Home My WebLink About13-Public Works CIT~ OF SAN BERN~DINO - REQUi~;FO~~c;~NCIL ACTION From: PI'C'u.-AJ;.','h, OfiAuthorization to Proceed with ".. SUbJect: f.ormation of an Acquisition Public Works/Engineering c', t,L'~ :: 2.' Assessment District ROGER G. HARDGRAVE Dept: Date: 8-21-90 Synopsis of Previous Council action: None. Recommended motion: That the City Engineer and City Clerk be authorized to initiate proceedings for the establishment of an assessment. district under the provJ.sJ.ons of the Municipal Improvement Act of 1913 and the Improvement Bond Act of 1915 to cover the acquisition of a portion of the off-site improvements in Tentative Tract No. 14503 in the City of San Bernardino, and to do all things necessary to bring the project to a timely completion 1 and that the use of the consultants for Assessment District No. 977 be approved without going through t Request for Proposals process. cc: Shauna Edwins Craig Graves Contact person: Les Foaassv Staff Report, Supporting date ettached: MaP & Letter Phone: 5334 Ward: 6 FUNDING REQUIREMENTS: Amount: N/A Source: (Acct. No.1 (Acct. OescriDtionl Finance: Council Notes: 75-0262 Agenda Item No~3 C'ITV OF SAN BERNA.:bINO - REQUEST FOh)COUNCIL ACTION STAFF REPORT Page 1 of 2 Assessment District No. 977 was formed to acquire a portion of the public improvements installed by Tracts No. 14184 and 14185, at Cajon Boulevard and June Street. Formation of this assessment district allowed some of the improvement costs to be financed, which encouraged sales by reducing the initial purchase price. This approach has proven so successful that the subdivider, Century Homes, has submitted Tentative Tract No. 14503 to create 101 lots on the parcel north of Tracts No. 14184 and 14185. The tentative map for this new tract will be considered by the Planning Commission at their meeting of 8-21- 90. A letter, dated 7-18-90, has been submitted by Bob Diehl, Project Director for Century Homes, requesting that another assessment district be formed to acquire a portion of the public improvements. Formation of this district would allow the buyers in the new tract to purchase homes at a competitive price like the ones in the two existing tracts. The annual assessments for the previously established district are about $631 plus interest per lot, which is about the expected amount for the new district. All buyers will be required to sign a disclosure statement that they are aware of the existence of the assessment district and the annual assess- ments. It will be required for the subdivider to submit a cash deposit to cover the costs for processing and consultants' fees, if the district is not formed. This deposit will be refunded upon formation of the district. Consulting services were provided for Assessment District No. 977 by the following firms: Assessment Engineer Investment Banker Bond Counsel - GFB - Friedrich & Associates - Batement, Echler, Hill, Richards - Brown & Diven All three firms performed in a very satisfactory manner on the current district. Based upon their prior performances, and the similarities of the new district to the existing one, we recommend that these firms be retained without going through the Request for Proposals process. It is estimated that annual asses,sments of $631, plus interest, on the 101 lots in Tentative Tract- No. 14503, will finance the acquisition of about $1,275,400 in improvements. No estimate is available of the total cost for required public improvements. 8-21-90 75.0264 CI1'Y' OF SAN BERNA.:bINO - REQUEST FOh)COUNCIL ACTION STAFF REPORT Page 2 of 2 A common criteria for assessment districts is that the value of a finished lot is at least 3 times greater than the assessment. The requested district easily meets this criteria. The 1913 Act was recently revised to allow an official statement to be written so as to not put the issuing agency's credit behind the bonds. Security for the bonds would be the land within the district, which has a value of more than 3 times the amount of the bonds. Assessment districts are not normally used to finance the improvement of residential streets. Approval of this district could very well precipitate similar requests from other residential subdividers. In the letter requesting formation of Assessment District No. 977, the subdivider cited certain intangible benefits, such as upgraded gateway into the City, addition to the City's economic base, and necessary infrastruc- ture improvements for the entire area. These benefits will apply to the new district, except that the principal infra- structure improvement was the extension of the City's sewer system into the area, which has been accomplished. An administrative fee of bond proceeds, which will be district reserve fund. 1% would be collected from the deposited in our assessment 8-21-90 75-0264 i"- 11 PROPOSED ASSESSIIENT DISTRICT ([/lAc.,.. IlfS"t:J3).' ~ /(~ ~~/ ~o/ /~~l B-21- 90 OGDEN ST. .- fI) w z :;) .., VICINITY M.AP " w .- < .- fI) <. ~ ~ " "tC:1'1-lrc. o . 0 C~~Tl}~ ~TQ~S "YfH<9'he, !7IOnwe/:!/odr. ..we!'~ ...~~~~~.~\~~ "f ~~~ t-;~..,') \\~ u. ,\;: (' ': . >_",!<!', .\ c. ,J ~ .., " "<-:. ':'1".'_i ..-' 'C \ ~.... - - (~"... \.,-. \~- July 18, 1990 City of San Bernardino Rodger Hardgrave/Director of Publ ic Works 300 N. "0" Street San Bernard i no. Ca Ii forn i a 92418 SUBJECT: TENTATIVE TRACT 14503-IMPROVEMENT ASSESSMENT DISTRICT FORMATION Dear Mr. Hardgrave; Presently the above - referenced Development is being processed through the City Planning Department. The Tentative Map will probably be scheduled for Planning Commission action August 21, 1990. As a matt.er of consideration, Century Homes is requesting the City to al low the formation of an Assessment District for construction of the Public streets and utilities pursuant to the provisions of the "Municipal Improvement Act of 1913". The formation of such an Assessment District wi II allow homebuyers the opportunity to purchase a new home at a more competitive price. Previous Developments by Century Homes along the southerly boundary of this property (tracts 14184 & 14185) are currently in Assessment Districts. The approximate yearly assessment is around $600.00 per yea r. The 'homebuyer spur chas i ng these houses have acknowledged their understanding of the Assessment District. It is our intent to continue this same approach to the Development financing of tentative tract 14503. Your cooperation on this matter would be appreciated. If any additional information is needed or if you have any questions please contact me at your convenience. Sincerely; 'U Q:JJ Bob Diehl Project Director BD/eg CC: Mike Finn/Planning Department g-;l -90 P.O. Oox 8110 . Son Oemordino. CA 92412 1535 SouTh "0" Sneer . Son Oernordino. CA 92408 (714) :\70-0001 . (714) :J81-6007 . FAX (714) :J81-6885