HomeMy WebLinkAboutRes 06-41 Section 29 Assessment DistrictCITY OF PALM DESERT
FINANCE DEPARTMENT
STAFF REPORT
REQUEST: RESOLUTION NO. 06-41 - A Resolution of the City Council of the
City of Palm Desert, California initiating proceedings to form the
Section 29 Assessment District, declaring its intent to reimburse
certain expenditures by the City for improvements benefitting such
assessment district from the proceeds of improvement bonds and
taking certain other actions in connection with such assessment
district.
Date: March 23, 2006
CONTENTS: Resolution Initiating Proceedings to Form the Section 29 District.
Project Description - List of Improvements for A.D. 29
Map of District along with Ownership of each parcel.
Recommendation:
1. Waive further reading and Adopt Resolution No.06-41 initiating proceedings to
form the Section 29 Assessment District and declaring its intent to reimburse
certain expenditures by the City.
Background:
For several months, City staff has been discussing with property owners in Section 29
(area north of Gerald Ford from Monterey Avenue to Portola up to Dinah Shore) the
formation of an Assessment District to finance various public infrastructure
improvements.
This resolution provides that the City Council is initiating proceedings to form the
Assessment District and it directs staff to effect the necessary procedural steps to do
so. This Resolution also confirms the establishment by the City Treasurer of a special
fund of the City to initially finance one of the improvements (Retention Basin, Water &
Sewer Improvements needed prior to issuing bonds), and it provides for reimbursement
to the City from the Assessment District for City funds spent on any improvements prior
to issuance of bonds. This Resolution also clarifies that the City may acquire public
infrastructure improvements as contemplated by the Assessment District (purchase
retention basin, sewer and water improvements prior to finalize proceedings) which
have been undertaken by the property owners before the Assessment District is
formed.
Next steps for the Assessment District process: 1.) Approving Engineer's Report - April
2006; 2.) Adopt resolution hiring Finance Team; 3.) Mail ballots to property owners -
end of April.
Page 2 - Section 29 Resolution Staff Report
Submitted By:
Paul S. Gibson
Director of Finance/City Treasurer
Approval:
Carlos Orteg ity Manager
Dave Yrigoy,
Director o
edevelopment & Housing
RESOLUTION NO. 06-41
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM DESERT INITIATING PROCEEDINGS TO FORM THE
SECTION 29 ASSESSMENT DISTRICT, DECLARING ITS
INTENT TO REIMBURSE CERTAIN EXPENDITURES BY
THE CITY FOR IMPROVEMENTS BENEFITING SUCH
ASSESSMENT DISTRICT FROM THE PROCEEDS OF
IMPROVEMENT BONDS AND TAKING CERTAIN OTHER
ACTIONS IN CONNECTION WITH SUCH ASSESSMENT
DISTRICT
THE CITY COUNCIL OF THE CITY OF PALM DESERT HEREBY FINDS,
DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
Section 1. The owners of certain property located within the City of Palm Desert,
as shown on Exhibit A, attached hereto have requested the City Council to initiate proceedings
pursuant to the Municipal Improvement Act of 1913 (Division 12 of the Streets and Highways
Code, commencing with Section 10,000) (the "1913 Act") to form an assessment district to be
known as the "Section 29 Assessment District" for the purpose of acquiring, constructing and
installing certain public infrastructure improvements (sewer and water lines, street improve-
ments, storm drainage) of special benefit to the properties in the Assessment District. The City
Council therefore desires to initiate proceedings for the formation of the Section 29 Assessment
District, the levy of assessments against properties in the Section 29 Assessment District and the
issuance of improvement bonds to finance such improvements.
Section 2. The City Council may wish to complete, or cause to be completed,
certain of the public infrastructure improvements prior to the formation of the Section 29
Assessment District and the levy of assessments and issuance of improvement bonds, and to be
reimbursed from such assessment revenues and bond proceeds when, and if, the City forms the
Section 29 Assessment District, levies assessments and issues improvement bonds.
Section 3. Pursuant to Section 10210 of the 1913 Act, in order to expedite the
making of public infrastructure improvements, the City Treasurer has established a special fund
designated the "Section 29 Assessment District Special Loan Fund." The City Treasurer may
transfer into such Special Loan Fund such sums as the City Treasurer deems necessary to fund
completion of certain of the improvements. The sums so transferred to the Special Loan Fund
and expended on any such public infrastructure improvements shall constitute a loan to such
Special Loan Fund, and shall be repaid from proceeds of assessments levied in connection with
the proposed Section 29 Assessment District and/or improvement bonds issued to represent
unpaid assessments. The establishment of such Special Loan Fund and any and all transfers
thereto by the City Treasurer are hereby ratified and confirmed.
Section 4. The proposed Section 29 Assessment District improvements also
include improvements, together with appurtenances and appurtenant work, installed and
constructed, or to be installed and constructed, by one or more of the owners of property in the
proposed Section 29 Assessment District prior to the formation of the Assessment District and
the levy of assessments and issuance of improvement bonds. The City Council hereby declares
P6401/1033/878732v3
RESOLUTION NO. 06-41
its intention to enter into an acquisition and funding agreement with each subject owner which
provides for the owner to be paid for such improvements in accordance with the terms and
conditions of the acquisition and funding agreement at an acquisition price determined pursuant
to the acquisition and funding agreement, but solely from proceeds of improvement bonds when,
and if, the City forms the Section 29 Assessment District, levies assessments and issues such
improvement bonds in an amount sufficient therefor. Notwithstanding that improvements have
been or may be constructed in rights -of -way or on property which has been or may be dedicated
to the City prior to the formation of the Assessment District, or that the City has issued or may
issue a notice of completion or acceptance with respect to such improvements or otherwise has
evidenced or may evidence its acceptance of the improvements prior to the formation of the
Section 29 Assessment District, for only the purposes of the Section 29 Assessment District
proceedings, such acquisition and funding agreements, and payment to the subject owner for
such improvements as contemplated therein from the proceeds of improvement bonds, if any, the
improvements shall be deemed to be the property of the subject owner until such payment.
Section 5. The City Council hereby appoints and designates the Director of
Public Works of the City to perform the duties and functions of the Superintendent of Streets in
connection with the proceedings to form the Section 29 Assessment District pursuant to the 1913
Act.
Section 6. Section 1.150-2 of the Treasury Regulations governs the allocation of
expenditures of a reimbursement bond. A reimbursement bond is that portion of an issue of
bonds (or other obligations) allocated to reimburse an original expenditure (i.e., an expenditure
for a governmental purpose that is originally paid from a source other than a reimbursement
bond) that was paid before the date of issue of the bonds. Section 1.150-2 provides rules to
determine when an allocation of proceeds of bonds to reimburse an original expenditure will be
treated as an expenditure of those proceeds.
Section 7. In order for such an allocation of those proceeds to be treated as an
expenditure, the issuer (or in certain cases, a conduit borrower) of the bonds must, in accordance
with Section 1.150-2, adopt an official intent for the original expenditure. The official intent is a
declaration of intention by the issuer to reimburse the original expenditure with proceeds of
bonds.
Section 8. As set forth in Section 3, hereof, the City may make expenditures in
connection with certain of the public infrastructure improvements and intends that such
expenditures be reimbursed to the City from the proceeds of improvement bonds to be issued by
the City in connection with the assessment district. The City expects that all such expenditures
will be reimbursed with proceeds of the improvement bonds.
Section 9. The maximum principal amount of improvement bonds expected to be
issued in connection with the Section 29 Assessment District is $33,500,000.
Section 10. This official intent is not declared as a matter of course and is not
declared in an amount substantially in excess of the amounts expected to be necessary to
reimburse the expenditures described in Section 3 hereof.
P6401/1033/878732v3 2
RESOLUTION NO. 06-41
Section 11. The officers of the City are hereby authorized and directed, jointly
and severally, to execute and deliver any and all necessary documents and instruments
and to do all things which they may deem necessary or proper in order to effectuate the
purposes of this Resolution and any such actions previously taken by such officers are
hereby ratified, confirmed and approved.
PASSED, APPROVED and ADOPTED this day of
2006, by the following votes to wit:
AYES:
NOES:
ABSENT:
ABSTAINS:
Attest:
CITY CLERK
RACHELLE D. KLASSEN
MAYOR
JIM FERGUSON
3
J
CITY OF PALM DESERT
Assessment District 2004-02
Project Description
The City of Palm Desert, in conjunction with the proposed privately financed
development of 310 acres located in the northwest area of the city, proposes to
form an assessment district to construct necessary public infrastructure
improvements including streets, traffic signals, underground utilities and drainage
facilities.
The area proposed for development is surrounded by Gerald Ford Drive,
Monterey Avenue, Avenue 35, Dinah Shore Drive and Portola Avenue. The area
consists of primarily undeveloped lands which are in various stages of
entitlement and development. The properties include:
1) Lowes Corporation - a home improvement retail outlet including
sq. ft. of retail space, parking and 7 acres of future
development on 20 acres located on the northeast corner of Gerald
Ford and Monterey Drives. The retail store is operational.
2) Sares-Regis Group — 324 condominiums located on 25 acres at the
northwest corner of Gerald Ford Drive and Gateway Avenue. Site is
under development.
3) Riiington Homes — 153 single-family lots located on 36 acres at the
northeast corner of Gerald Ford Drive and Gateway Avenue. Site is
under development.
4) Ponderosa Homes — 237 single-family lots located on 83 acres plus 42
undeveloped acres zoned for single-family residential at the northwest
corner of Gerald Ford Drive and Portola Avenue. Site is under
development.
5) Desert Wells 237 — 30 acres located at the northwest corner of Portola
Avenue and Dinah Shore Drive designated for high density residential.
6) MacLeod Family LP — 70 acres located on the southeast corner of
Monterey Avenue and Avenue 35 including 35 acres residential/school
site and 35 acres of residential/commercial.
7) Summit Properties — 224 condominiums on 20 acres located on the
northeast corner of Gateway Avenue and Avenue 35.
The efficient development of these properties requires the sharing of significant
infrastructure systems. In planning the development of these properties, it was
determined that the formation of an assessment district would allow the parties to
plan, develop and finance these systems in a manner which fairly balanced costs
and risks among the properties.
The following list is a detailed description of the infrastructure to be constructed
by the proposed assessment district:
.40
Monterey Avenue
(South of 35`h Avenue to "A" Street):
• Additional Right of Way dedication on east side
• East side Street Improvements include:
o Lane widening
o Curb and Gutter
o Signing and Striping
o Street Median and landscaping
o Meandering Sidewalk
o Street Lights (at intersections)
• Water Improvements include
0 18-inch water main
• Power Pole relocation
• SCE Easement relocation
Gerald Ford Drive
(East of Gateway Drive to Portola Avenue):
• Additional Right of Way dedication on north side (East of Dolce Development)
• North side Street Improvement
o Lane widening
o Curb and Gutter
o Signing and Striping
o Street Median and landscaping
o Median turn pocket to Gateway Drive
o Median turn pocket to The Gallery Development
o Meandering Sidewalk
o Street Lights (at intersections)
• Water Improvement
o 18-inch water main
0
• Power Pole relocation
• SCE Easement relocation
• Traffic Signal at Gerald Ford Drive and Portola Avenue
• Traffic Signal at Gerald Ford Drive and Gateway Drive
Portola Avenue
(North of Gateway Drive to Dinah Shore Drive):
• Full Right of Way dedication
• Full Street Improvements
o Curb and Gutter
o Signing and Striping
o Street Median and landscaping
o Meandering Sidewalk
o Street Lights (at intersections)
• Water Improvement
0 18-inch water main
• Sewer Improvement
0 10-inch sewer main North of Dinah Shore to 1-10
• Storm Drain Improvements
o Extension of existing 42-inch storm drain pipe from Gerald Ford to Dinah Shore _
o Install 96-inch storm drain pipe north from Dinah Shore to the Retention basin
• Power Pole relocation
• SCE Easement relocation
• Traffic Signal at Portola Avenue and Dinah Shore Drive
Gateway Drive
(North of Gerald Ford Drive to 35`h Avenue):
• Full Right of Way dedication (North of "A" Street)
• Full Street Improvements
o Curb and Gutter
o Signing and Striping
o Meandering Sidewalk
o Street Lights (at intersections)
• Water Improvement
0 12-inch water main
• Sewer Improvement
o 8-inch sewer main North of "A" street to 35`h Avenue
• Storm Drain Improvements
o Install 36-inch storm drain pipe north of "A' street to 35`h Avenue.
• Traffic Signal at Gateway Drive and 35`h Avenue
35th Avenue
(West of Monterey Avenue to Dinah Shore Drive):
• Full Right of Way dedication (from Gateway to Dinah Shore, South half West of Gateway
drive to Monterey )
• Full Street Improvements (from Gateway to Dinah Shore, South half West of Gateway
drive to Monterey )
o Curb and Gutter
o Signing and Striping
o Meandering Sidewalk
o Street Lights (at intersections)
• Water Improvement
0 12-inch water main
Sewer Improvement
o 8-inch sewer main East of Gateway Drive to Dinah Shore
Storm Drain Improvements
o Install 54-inch thru 66-inch storm drain pipe East of Gateway Drive to Dinah
Shore
Traffic Signal at 35th Avenue and Dinah Shore Drive
Dinah Shore Drive
(south of 351h Avenue to Portola Avenue):
• Full Right of Way dedication
• Full Street Improvements
o Curb and Gutter
o Street median and landscaping
o Signing and Striping
o Meandering Sidewalk
o Street Lights (at intersections)
• Water Improvement
o 18-inch water main
• Sewer Improvement
o 10-inch sewer main from 35`h Avenue to Portola Avenue --
• Storm Drain Improvements
o Install 84-inch thru 96-inch storm drain pipe from 35`h Avenue to Portola Avenue
"A" Street
(West of Monterey Avenue to Gateway Drive):
• North Right of Way dedication
• North Street Improvements
o Curb and Gutter
o Signing and Striping
o Sidewalk
o Street Lights (at intersections)
• Water Improvement
o 12-inch water main
Sewer Improvement
o 8-inch sewer main from Lowes east property line to Gateway Drive
Storm Drain Improvements
o Install 30-inch storm drain pipe from Lowes east property line to Gateway Drive
"B" Street Polce Avenue)
(West of Gateway Drive to "C" Street):
• Street Improvements
o Curb and Gutter
o Signing and Striping
• Water Improvement
0 12-inch water main
"C" Street
(South of 35'h Avenue to "B" Street):
• Full Right of Way dedication
• Full Street Improvements
o Curb and Gutter
o Signing and Striping
• Water Improvement
o 12-inch water main
• Sewer Improvement
o 8-inch sewer main from "B" Street to 35th Avenue
• Storm Drain Improvements
o Install 36-inch storm drain pipe
"I-10" Crossing
(Sewer main upgrade of from 12-inch VCP to 18-inch Stainless Steel):
• Sewer Improvement
o Replace existing 12-inch VCP sewer main with 18-inch Stainless Steel pipe
Retention Basin
• Acquisition of Retention Basin
• Retention Basin Modification
o Reshape retention basin
o Add slope protection
o Construct pipe outlet structure
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SUMMACL.EOD / WORLD / PONDEROSA
.no�olul / FAi Iss-fue
9
PARCEL
OWNERSHIP
ACREAGE
PERCENTAGE
Area 1
Macleod Family Trust
70.64
22.64
Area 2
Lowes Corporation
20.67
6.63
Area 3
Sares-Regis Group
25.06
8.03
Area 4
World Development
36.62
11.74
Area 5
Ponderosa Homes
118.19
37.88
Area 6
Ponderosa Homes
3.0
0.96
Area 7
Noble Company
36.4
11.67
Area 8
Sares Regis Group
1.42
0.45
TOTAL
312
100%
The following assessments have been revised from our January 13, 2006 report. The
total assessments include capitalized interest for 18 months (3,070,965), excludes
undergrounding along Gerald Ford Drive, adjusts right-of-way costs for the McLeod
Development at market rates and impact fees of $1,588,387 for Debonne development.
TOTAL ASSESSMENTS BY DEVELOPMENT
Improvement
Right -of-
Total
Developer
Assessment
M
Assessment
McLeod
$4,864,509
$3,954,908
$8,819,417
Lowes
$1,343,960
0
$1,343,960
Sares-Regis
$3,757,733
$299,882
$4,057,615
IZllington
$3,001,279
$401,190
$3,402,469
Ponderosa Homes
$6,816,510
$751,378
$7,567,888
Tom Noble (! )
$1,088,483
$0
$1,088,483
Berdan Holdings fokZ,) $208,988
0
$208,988
School Site
Debonne,*
$2,204,333
$1,877.755
$76,978
$125,286
$2,281,311
t2,003,041
$25,163,550
$5,609,622
$30,773,171
(1) No financing charges are assigned to this assessment.
(2) $66,718 of financing charges are included in the assessment and would be
deducted from the assessment if paid during the cash payment period.
14