HomeMy WebLinkAboutRes 06-64 PolicyReimbursement for Staff Cost Associated w-Land Based Financing DistrictsMEETING DATE 17 - a 7 - Ti (,o
L'CONTINUED TO 5 11' O (o
CITY OF PALM DESERT 13 PASSED TO 2ND READING
STAFF REPORT
REQUEST: APPROVAL OF CITY COUNCIL RESOLUTION NO. 06-64 ,
ADOPTING A POLICY FOR THE REIMBURSEMENT FOR STAFF
COSTS ASSOCIATED WITH LAND -BASED FINANCING DISTRICTS
SUBMITTED BY: DAVE YRIGOYEN, DIRECTOR OF REDEVELOPMENT/HOUSING
DATE: APRIL 27, 2006
CONTENTS: RESOLUTION NO. 06-64
STAFF TIME REIMBURSEMENT POLICY
Recommendation:
That the City Council open the public hearing and following testimony take the
following action:
1. That the City Council approve Resolution No. 06-64 , adopting a policy for
the reimbursement of staff costs associated with land -based financing
districts within the City of Palm Desert.
Executive Summarv:
Adoption of this policy will authorize the City to be reimbursed for staff costs associated
with land based financing districts.
Discussion:
City Council had previously requested staff to research the possibility of creating a policy
that regulates the fees charged to developers for land -based bond issues. Currently,
based on precedent, the City requires a $50,000 deposit for the formation of district,
issuing of the bond and any direct costs associated with the district, but has no provision
for reimbursement of staff time. Typically, staff time is calculated at the end when all
improvements are completed and then reimbursed with remaining bond funds, if available.
This policy will ensure that staff time spent in connection with the formation of any
financing district, the issuance of bonds and the acquisition and construction of public
facilities is available and recovered through the bond proceeds.
An initial policy was created and reviewed by the Investment and Finance Committee in
July 2004. Following much scrutiny, the committee requested staff to have the policy
further reviewed by the City Attorney and Agency Counsel for their suggested modifications
and approval.
GARDAWaria Hunt1WPDATAIYRIGOYEMSTFRPTS1042706stftimereimbursepolicy.doc
Staff Report
Approval of Staff Time Reimbursement Policy associated with Land -Based Financing
Districts
Page 2
April 27, 2006
Legal counsel has reviewed the policy and made minor modifications. In addition, legal
counsel has advised that since this is an administrative fee, it is not subject to the
Proposition 218 process. Legal counsel has suggested, however, that this item be brought
before the City Council for adoption just as any other fee, whereby it is placed on a public
hearing agenda.
The policy establishes that Developers/Owners will be required to pay an up front
administration fee for personnel time and materials, which can be reimbursed as part of the
Cost of Issuance, if the bonds are issued. The policy can be modified, as necessary, at
the discretion of the City Council once adopted.
The Investment and Finance Committee reviewed the revised Staff Time Reimbursement
Policy and has voted to recommend that the City Council adopt them. Staff recommends
that the City Council adopt the Policy for Staff Costs Associated with Land -Based
Financing Districts.
Submitted By: Approval:
4ave Yrig� J Cti McCarthy
Director oevelopment/Housing AMRedevelopm
VAT:tbm
Approval:
A�
Carlos L. Orteg
City Manager
=TY COUNCIL�CTION e
APPROVED DENIED
RECF,JVED OTHER .L liLW
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AYES � (l
NOES : , l.. „ .
ABSENT : ����Y1. ..... . _ .. ,,,,... ,
ABSTAIN: R.
VERIFIED BY:
Original on File tor' h City .,.............. s Offire
g y Clerk's
Paul S. Gibson
Finance Director/Treasurer
RESOLUTION NO. 06- 64
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM DESERT ADOPTING A REIMBURSEMENT POLICY
FOR STAFF COSTS ASSOCIATED WITH LAND -BASED
FINANCING DISTRICTS
RECITALS:
WHEREAS, the City Council of the City of Palm Desert (the "City Council")
encourages development of commercial, residential and industrial property which result
in reciprocal value to the City; and
WHEREAS, the City Council will consider developer or property owner initiated
applications requesting the formation of community facilities districts or assessment
districts to assist these types of development; and
WHEREAS, the City Council has expressed a desire that staff ensures that the
time that is spent by City personnel in connection with the formation of any financing
district, the issuance of bonds and the acquisition and construction of public facilities is
recovered on a revenue neutral basis; and
WHEREAS, City staff have prepared a Reimbursement Policy for Staff Costs
Associated with Land -Based Financing Districts (the "Reimbursement Policy"), a copy of
which Reimbursement Policy has been presented to the City Council and is on file in the
office of the City Clerk and open to public inspection; and
WHEREAS, the City Council has conducted a duly noticed public hearing with
respect to the Reimbursement Policy and the City Council has considered all written
and oral comments submitted with respect thereto;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM
DESERT DOES HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS:
Section 1. The foregoing recitals are true and correct and a substantive part of this
Resolution.
Section 2. The City Council hereby adopts the Reimbursement Policy.
P6401-0001',1883694v l .doc
PASSED, APPROVED, and ADOPTED this 11 cn day of May, 2006, by the
following vote to wit:
AYES:
NOES:
ABSENTS:
ABSTAINS:
ATTEST:
Rachelle D. Klassen, City Clerk
Jim Ferguson, Mayor
CITY OF PALM DESERT
REIMBURSEMENT POLICY FOR STAFF COSTS
ASSOCIATED WITH LAND -BASED FINANCING DISTRICTS
INTRODUCTION
The City of Palm Desert will consider developer or property owner initiated applications
requesting the formation of community facilities or assessment districts and the
issuance of bonds to finance eligible public facilities. The City Council has expressed a
desire that staff ensures that the time that is spent by City personnel in connection with
the formation of any financing district, the issuance of bonds, and the acquisition and
construction of public facilities is recovered on a revenue neutral basis.
OBJECTIVE
The objective of this policy is to set parameters to reimburse the City for personnel
costs associated with the formation of financing districts, as well as the issuance of
bonds and the acquisition and construction of public facilities. The initial fee will cover
the City's first year administration costs until such costs can be recovered through the
property tax rolls. The policy will also address reimbursement for any refunding of
outstanding bonds as well. In addition, the policy will address reimbursement for any
personnel costs associated with the supervision, management and oversight of the
acquisition and construction of projects financed by the districts.
CITY ADMINISTRATIVE REIMBURSEMENT
New Bond Issues:
The City shall receive an administrative fee to reimburse the City's costs in connection
with the formation of a financing district and the issuance of bonds. The City shall
calculate the administration fee based on an estimate of City personnel time and
materials required. The City's administration fee will be considered a component of the
costs of issuance and will be reimbursed to the landowner or developer from bond
proceeds in the event bonds are issued.
For assessment districts, the assessment proceedings will include authorization for the
City to levy annual administrative assessments, not to exceed a designated maximum
annual amount. The actual staff costs provided in connection with each new bond issue
shall be tracked annually, and staff will make the proper adjustments through the
administrative assessments included on the property tax rolls each year (subject to the
maximum administrative assessment). In addition, if necessary, staff will adjust the
annual administrative assessments (within the maximum) to account for any deficit
related to the administrative fee described above.
GARDAWana Hunl1WPDATAIYRIGOYEMReimbursement PolicylReimbursement Policy.doc
For community facilities districts, the rate and method of apportionment of the special
tax will include the payment of the City's annual administrative expenses as a
component of the annual special tax requirement. The actual staff costs provided in
connection with each new bond issue shall be tracked annually, and staff will make the
proper adjustments to the annual special taxes included on the property tax rolls each
year (subject to the maximum special tax). In addition, if necessary, staff will adjust the
annual special tax (within the maximum) to account for a deficit related to the
administrative fee described above.
Refinanced Bond Issues:
The City shall be reimbursed for the City's costs in connection with issuing refunding
bonds on a time and materials basis for City personnel time spent on the issuance of
the refunding bonds. Staff will calculate an estimate and refine the estimate at the time
of the pricing of the bonds. The costs will be included in the costs of issuance for the
refunding bonds. These costs will be disclosed to any developer or owner who has
requested the City to undertake a refunding. In addition, where the City initiates a
refunding without a request, these costs will be disclosed in the staff report prepared in
connection with the City Council's consideration of the refunding.
To the extent allowable, refunding proceedings for assessment districts will include
authorization for the City to levy annual administrative assessments and refunding
proceedings for community facility districts will include authorization for the rate and
method of apportionment to include the payment of the City's annual administrative
expenses as a component of the annual special tax requirement. The actual staff costs
provided in connection with each refunding issue shall be tracked annually, and staff will
make the proper adjustments through the administrative assessments or special taxes
included on the property tax rolls each year (subject to the maximums). In addition, to
the extent allowable, staff will adjust the annual administrative assessments or special
taxes to account for any deficit related to the administrative fee described above.
Construction Manaqement for the Assessment Districts or Communitv Facilities
Districts:
The City shall include within the cost estimate for any assessment district or community
facility district, including districts formed to place utilities underground, any personnel
costs for supervising, managing and oversight of the construction of projects of the
district. Staff will calculate an estimate and refine the estimate prior to the pricing of the
bonds.
Modifications:
The City Council may modify and/or repeal this policy at its discretion. This policy shall
be reviewed by staff periodically to ensure that it is consistent with state and federal
laws.
NOTICE OF PUBLIC HEARING
REGARDING
ADOPTION OF A REIMBURSEMENT POLICY FOR STAFF COSTS
ASSOCIATED WITH LAND -BASED FINANCING DISTRICTS
NOTICE IS HEREBY GIVEN that on the
Council Chambers of the City of Palm Desert, 73-510 Fred Waring Drive, Palm Desert,
California 92260-2578, a public hearing will be held on the proposed adoption by the
City Council of the City of Palm Desert of a Reimbursement Policy for Staff Costs
Associated with Land -Based Financing Districts. The objective of the Reimbursement
Policy is to provide reimbursement to the City for personnel costs associated with the
formation of financing districts (assessment districts and community facilities districts),
as well as the issuance of bonds and the acquisition and construction of public facilities.
The Reimbursement Policy provides for (i) the imposition of an administrative fee to
reimburse the City's costs in connection with the formation of a financing district and the
issuance of bonds and (ii) the ongoing payment of the City's annual administrative
expenses in connection with a financing district.
The proposed Reimbursement Policy is on file in the office of the City
Clerk, 73-510 Fred Waring Drive, Palm Desert, California 92260-2578, and available for
public inspection.
At the above -described public hearing, all persons who desire to be heard
with respect to the proposed Reimbursement Policy may appear before the City Council
and be heard thereon.
Date: April 7, 2006
RA HELLS D. KLASSEN,JCITY CLERK
CITY OF PALM DESERT, CALIFORNIA
(760) 346-0611
P6401-0001\883871v1.doc
Legal Notice - Public Hearing Reimbursement Policy for Staff Costs - Lnd Based Financi... Page 1 of 1
Martinez, Gloria
From: Moeller, Charlene [CMOELLER@palmspri.gannett.com]
Sent: Friday, April 07, 2006 12:13 PM
To: Martinez, Gloria
Subject: RE: Legal Notice - Public Hearing Reimbursement Policy for Staff Costs - Lnd Based Financing
Dist.
Ad recieved and will publish on date(s) requested.
C(iadene %oeffer
ftb c 94rotice CustomerSeroice Wgp.
(760) 778-4578, Fax (760) 778-4731
My hours are Mon -Fri 8:00-5:00 pm.
Desert Sun leizalsothedesertsun.com
6T,, q)esen Tost Week& dpwlegals@thedesertsun.com
The Valley's #1 Source in News & Advertising!
-----Original Message -----
From: gmartinez@ci.palm-desert.ca.us [mailto:gmartinez@ci.palm-desert.ca.us]
Sent: Friday, April 07, 2006 12:09 PM
To: chariene.moeller@desertsun.com
Cc: mhunt@ci.palm-desert.ca.us; cjaime@ci.palm-desert.ca.us; bkeating@ci.palm-desert.ca.us
Subject: Legal Notice - Public Hearing Reimbursement Policy for Staff Costs - Lnd Based Financing Dist.
PLEASE PUBLISH THE FOLLOWING:
PUBLIC HEARING
Adopting of a Reimbursement Policy for Staff Costs Associated w/Land-Based Financing
Districts.
TWO TIMES IN THE DESERT SUN
Thursday, April 13, 2006 and
Thursday, April 20, 2006
<<PH 042706 - Reimbrsmnt Policy 4 Staff Costs - Land Based Financing Dist..DOC>>
Thank you, Charlenell
Have a GOOD weekend.
51. Gkgia Martinez
73-510 Fred Waring Drive
Palm Desert, California 92260
(760) 346-061 1 Ext. 354
gmartinezgd. palm-desert.ca. us
4/7/2006