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HomeMy WebLinkAbout1992-07-28; City Council; 11817; REVISIONS TO COUNCIL POLICIES 33 AND 381 f ’? i a 3 0 PC Lk 2 z 0 F 0 =! 0 z 3 0 0 a , ,,/7 / - CIT OF CARLSBAD - AGENW BILL 3, DE CI1 CI1 REVISIONS TO COUNCIL POLICIES 33 AND 38 Q AB#~Z~- TITLE: MTG. 7/28/92 DEPT. CM RECOMMENDED ACTION: Adopt revised Council Policies 33 and 38. ITEM EXPLANATION: Council Policies 33 and 38 were created to set forth the City Council’s position on th of Assessment District and Mello-Roos Community Facility Districts in the CI 1987, while Policy 38 was adopted in 1987 and last revised in 1989. The recent review of these policies was prompted by the need to clarify the City’s PO on a few basic issues related to the use of tax-exempt debt in the City of Carlsbad. - are no major changes in policy being recommended to the Council at this time. action simply revises the existing policies to reflect current practice or provide clarifici The significant changes proposed by staff are as follows: COUNCIL POLICY 33 - Policy Governing the Use of 1915 Act Bonds 1. Carlsbad, Council Policy 33 was first adopted in 1984, with the last revision occurr Insert language into the “PURPOSE1 section of the policy explaining that it i the Council’s intent to relieve any developer of responsibilities for F improvements that properly rest with the developer. The Council’s position i public debt should be used to finance improvements that are of benefit t public, POLICY Section 5 - Clarify the City’s position that the Council is not requir proceed with the creation of a district if the Council finds that the creation of a district is not in the best interest of the City. POLICY Section 6 - Allow the City to name the full financing team includin underwriter. Also, allow the proponent of the district to select the design eng in consultation with the City Engineer. The financing team selection is impc in that the members shape the debt structure, covenants and conditions c bond issue. These should be crafted to be in the best interest of the City an ultimate homeowner. This new wording makes it clear that the City is in ct of choosing the individuals who will shape these policies. The selection ( design engineer may be made by the property owner as long as the City Eng agrees with the selection. This section also requires a Conflict of Ini statement from the members of the financing and design team. 2. 3. 4, POLICY Section 7 - Allows the City to select the method of sale for any L issued by the district - either competitive sale or negotiated sale. The pre policy was silent on this issue. I ' < 0 Page Two of AgenLta Bill No. /I, 8 I? 5. POLICY Section 17 - Adds language that clarifies the City's position on the of projects that would qualify for financing under this policy. The Cil consistently stated that the goal is to use public financing to pay for projec benefit the public. This section further emphasizes that the City's goa extent of the project to be financed, property owners will need to be sure th: project includes all property necessary to accomplish this goal. POLICY Section 18 - Adds language that defines how surplus funds will be In most districts there will be surplus funds remaining after completion construction work. State law allows the City to use these monies in three To complete work related to the project that the Council c necessary and reasonable Refund the excess to the property owners by offsetting annu: service payments, or Call bonds and reduce the amount of outstanding debt. complete circulation links. When considering the boundaries for a district a 6. A) B) C) The staff recommendation is to set a policy that allows the Council tc advantage of all three of these options. If Council does not choose to e surplus funds on project related costs, staff is suggesting that the policy all( rebating of up to 5% of the amount of bonds issued (with a maximum million) to property owners through the reduction of annual debt s payments. Any amount in excess of this amount would be used to call b The limits set up in this policy are recommended based on reasonablenes on any legal or scientific basis. Should Council feel more comfortable with limits, these can be adjusted accordingly. PROCEDURE Section 1 - Names the Financial Management Director i Chairperson of the Policy 33 Committee. 7. COUNCIL POLICY 38 - Policy governing the use of Mello-Roos Districts 1. POLICY Section 2 - Expands the language in Policy 38 to allow Coui consider the use of Mello-Roos districts to construct a wide variety of fa where there is a finding of significant public benefit. POLICY Section 3 -Adds language requiring members of the financing and c team to file appropriate Conflict of Interest statements. POLICY Section 6 - Adds language to the policy mandating that a disc1 program be implemented similar to the one used under Council Policy 33. POLICY Section 8 - Adds language stating that a Mello-Roos tax will r allowed to pass through to a homebuyer. Although this has been the Coi policy for several years, and this position was written into the govl documents for Community Facilities District No. 1, Policy 38 has never spec included this limitation. 2. 3. 4. 0 0 Page Three of Age1 Ida Bill No. 1 I! 8 I 2 \ 5. PROCEDURES Section 2 - Adds the Financial Management Director to the 38 committee as Chairperson. Staff is recommending the above changes to bring these policies into conformanc current practice procedures. The revision of these policies will have some effect types of projects that are brought before the Council for consideration in the fut limiting the areas where tax-exempt debt will be used. FISCAL IMPACT: Both Council Policies 33 and 38 have no direct fiscal impact on the City. Insteac create a framework for the consideration of how and when the City will consid issuance of public debt. The revision of the policies is intended to clarify the position and to provide better guidance to both the development community an when considering a project. EXHl BITS: 1. 2. Council Policy 33 - Policy for use of 191 5 Act Bonds. Council Policy 38 - Policy for use of the Mello-Roos Community Facilities 1982. CITY OF CARLSBAD PS Date Issued June 9, Effective Date June Cancellation Date2 Supersedes No. 5 / : Policy No. 33 COUNCIL POLICY STATEMENT General Subject: Community Activity Funding Specific Subject: Policy for use of 1915 Act Bonds Copies to: City Council, City Manager, City Attorney, Department and Divi Employee Bulletin Boards, Press, File BACKGROUND: In the past few years, the City Council has received several re property owners of major planned developments to use 1915 Ac district bond financing for public improvements to be consti condition of such developments. The City Council has determir exempt financing and 1915 Act bonds should only be used if z public benefit to the City can be found. Council has determined such a benefit can be found in the construction of arterial stre necessary, not only to serve an individual development, but arterial streets may include sewer and water lines when the Cj determines it is necessary that they be located within the street 1 Projects may also include other incidental construction such facilities located within an eligible arterial highway. Council has also determined that it is necessary to establish ci under which the City Council will approve assessment district fii guide to those who would seek to request it. To establish a policy regarding the requirements which must be the City Council will approve the financing of public improvemeni Act assessment district bonds. To establish a procedure for processing applications for assessn financing and a staff review committee to apply the requirements c to such applications. The committee may also consider recomn: the City initiate a district. This policy is primarily intended to apply assessment districts p property which is predominantly undeveloped where the develc area propose to use public financing in lieu of private fii appropriate public improvements. It is not the intent of this policy to relieve any developer of res] for public improvements or conditions of development rel: subdividing of property, the processing of tentative or final pan master plan developments. communities within the City, The use of assessment district f, PURPOSE CITY OF CARLSBAD P2 Date Issued June 9, Effective Date June Cancellation Date1 Supersedes No. 5 /: Policy No. 33 COUNCIL POLICY STATEMENT General Subject: Community Activity Funding Specific Subject: Policy for use of 1915 Act Bonds Copies to: City Council, City Manager, City Attorney, Department and Divi Employee Bulletin Boards, Press, File POLICY: 1. The City may allow the financing of public improvemen provisions of this policy where the public facilities reprt City's opinion, a significant public benefit not only to the residents of the development but to the entire communi? Facilities which may be considered shall be public facilities rights-of-way or easements, and for which a public agency 1 responsibility to maintain and operate. The types of fac financed are limited to: (a) 2. Arterial streets identified on the circulation eler Carlsbad General Plan. Sewer and water lines to be located within the rig arterial streets when the City Engineer deter necessary that they be so located. (b) (c) Drainage facilities and public utilities may be inc are appurtenant and incidental to such streets. 3. Project property value to lien ratio should be 4:l after the of the improvements to be financed. A project may be ap a ratio between 4: 1 and a minimum of 3: 1 if the ratio is rec by both bond counsel and the underwriter and if the City C the reduced ratio to be within parameters acceptable to value of the property proposed to be assessed shall be de an M.A.I. appraisal, performed by an appraiser selected 1 Projects shall be at the stage where all criteria of this p' adequately assessed. Developments proposed for inclusior shall have already received environmental review and already received all legislative approvals such as zoning, n es specific plans or Local Facilities Management Plans legislative approvals if the improvement to be constructed 4. Council may approve a district that includes some la CITY OF CARLSBAD Pa Policy No. 33 Date Issued June 9, Effective Date June Cancellation Date3 Supersedes No. 5 / : COUNCIL POLICY STATEMENT General Subject: Community Activity Funding Specific Subject: Policy for use of 1915 Act Bonds Copies to: City Council, City Manager, City Attorney, Department and Divi Employee Bulletin Boards, Press, File with the General Plan and if the City Council finds the ii is required in the public interest. Assessment districts shall have the concurrence of the aff property owners representing not less than 60 percent, by land proposed to be assessed. The petition shall include an of this policy and a waiver of the property owners’ right Majority Protest Act. The City Council is in no way proceed with the formation of an assessment district if finds that the creation of the district or the construc improvements will not be in the best interest of the City. The City shall select the assessment engineer, bond cou nq-x&d, the financial consultant and, if required, an und making such selections the City will take suggestions fros proponents into account. The design engineer a+d+m&m selected by the proponent of the district - subject to approval of the City. The bond counsel, undc financial consultant shall provide the City with a Statemen of Interest related to real estate holdings within the dl design engineer and assessment engineer shall provide a S Conflict of Interest as required under Section 871( Government Code (see attached). Bonds issued under this policy may be sold through a COI negotiated sale as determined by the City Council. The I consider recommendations from staff and the City consultant in selecting a method of sale. A sum sufficient to pay all fees and costs for the proposec district prior to award of contract shall be deposited with the proponents of the district. The proponents shall also to deposit with City a sum sufficient to cover all City cost: connection with review of a proposed district including I legal review, administration, plan checking, investigation, 1 review 4, inspection and property appraisals. These SI 5. 6. 7. 8. CITY OF CARLSBAD P; Policy No. 33 Cancellation Date1 COUNCIL POLICY STATEMENT Date Issued June 9 ~ Effective Date June Supersedes No. 5 /; General Subject: Community Activity Funding Specific Subject: Policy for use of 1915 Act Bonds Copies to: City Council, City Manager, City Attorney, Department and Divi Employee Bulletin Boards, Press, File retained by City to the degree used if the district is not completed or if such costs are not recovered by City from If the district is confirmed any sum not retained by C refunded in cash or applied as a credit against the assess] option of the proponents. Improvements shall be constructed in accordance with th Improvement Act of 1913, and the assessment district bo issued in accordance with the Improvement Bond Act of the City Council determines otherwise. Generally, there shall be no overlapping bond assessments on the proposed special assessment district at the time asse to be affirmed by the City. The City Council, upon adv counsel, may approve an overlap provided the combined are within the property value ratios of Paragraph 3 of thi: The proponents of the district must demonstrate to the sa the City Council that interim financing or other means is i the developments to be included within the district adequ the pay off of the bonds or their assumption by the purch individual homes within the proposed development. As review, the City Council may also consider any indebtedne existing against the properties to be assessed. The district must bring all property tax bills current and agree to current prior to confirmation of the district. If the City Council determines it is necessary, a financia study may be required by a consultant selected by the accomplished at the expense of the proponents of the ascertain whether or not the proposed development will j acceptance. The City Council may accept a private sale bo1 agreement from a qualified underwriting firm on terms ant satisfactory to the City in lieu of such a study. 9. 10. 11. all assessment obligations between the time the district is 12. CITY OF CARLSBAD P< COUNCIL POLICY STATEMENT Date Issued June 9 Effective Date June Cancellation Date2 Supersedes No. 5 / Policy No, 33 General Subject: Community Activity Funding Specific Subject: Policy for use of 1915 Act Bonds Copies to: City Council, City Manager, City Attorney, Department and Divi Employee Bulletin Boards, Press, File 13. As part of the structuring of the financing for the disti Council shall require that an adequate reserve fund be e! cover any potential defaults. The City is not required monies to the reserve fund to pay for delinquencies. It intent that its General Fund not be obligated in any wa delinquencies. The City Council may require the district proponents to e agreement with the City to be individually and jointly res the cost of any foreclosures which the City determines ai retain an attorney to prosecute the foreclosures in a time1 the name of the City and the proponent shall agree to be for all costs of such foreclosures. If the City Council app through of a bond to the purchaser of an individual lot, the shall be relieved of their obligations under the agreement It is the policy of the City Council in approving basic authorization for developments such as master plans 1 communities, to give such approvals as part of the Ciq planning process. That is, the City reserves the right to approvals in the future as they determine the public ii require. Such approvals, when given, are subject to a co the construction of any part of a development does not ve to complete other portions of the development. Constructj improvements pursuant to an assessment district in undevl shall not vest any rights to the existing legislative appro property to be assessed or to any particular level, type or use. Proponents of a district shall include an acknowledgei policy as part of their petition and shall expressly waive on and on behalf of their successors and assigns any cause of 2 on the case of Fury v. Countv of Sacramento whicl applicable to properties to be assessed. 14. in regard to the assessment district bonds. The City may, : 15. c CITY OF CARLSBAD P: Policy No. 33 Date Issued June 9, Effective Date June Cancellation DateA Supersedes No. 5 / : COUNCIL POLICY STATEMENT General Subject: Community Activity Funding Specific Subject: Policy for use of 1915 Act Bonds Copies to: City Council, City Manager, City Attorney, Department and Divi: Employee Bulletin Boards, Press, File 16. It is the City’s desire that proponents discharge the assess1 bonds applicable to their property prior to the sale of inc The City Council may approve a pass through of the bon to a prospective purchaser at their sole discretion. L writing, requesting permission to do so. The letter must co of how the prospective buyer will be notified and the ste accomplish the pass through. The required procedure sl: but not be limited to, all of the following: (a) wishing to secure approval of a pass through must apply ti Provide for full disclosure of this and any other financing applicable to the property to prospective including principal interest rate, duration and monthly payments. List the amount of the assessment lien in all sales bi advertising and all purchase documents adjacent 1 price of the property and in the same size type. Give prospective purchaser an option to have the lien discharged prior to close of escrow or to i assessment lien by a pass through as a part of the si the house or by a reapportionment of the assessmc (Sample disclosure forms are attached to this poli Once the request is received from the develope] placed on the Council agenda for consideratic complete review of the request by staff and the Committee. (b) (c) L CITY OF CARLSBAD Pi Policy No. 33 Date Issued June 9, Effective Date June Cancellation Date3 Supersedes No. 5 / : COUNCIL POLICY STATEMENT General Subject: Community Activity Funding Specific Subject: Policy for use of 1915 Act Bonds Copies to: City Council, City Manager, City Attorney, Department and Divir Employee Bulletin Boards, Press, File 17. The principal purpose for the City Council’s approval of district financing is to complete the links in the City’s system. The City Council in that regard will not favor district which contemplates the construction of a portion o street unless it is extended in a logical way to connect wii existing circulation system. The City may require that pr a district expand the area to be included within a propose may be necessary to complete such circulation. It is the Council’s policy that, in the event that there are SI generated through the creation of an assessment district i of bonds, these surplus funds shall be used as follows: (a) 18. To complete any work related to the project that 1913/1915 Act statutes. The Council may direct staff to use a portion of th. offset assessments to property owners in following manner consistent with the 1913/15 Act statutes. policy, an amount of up to 5% of the total bond is: to exceed $1 million may be used to offset annual i without further Council action. Unless otherwise directed by Council, any amount that used to offset assessments as described in (b) a used to call bonds at an appropriate bond cs determined by staff and the City’s financial advisor determines is equitable and reasonable as all01 (b) (c) CITY OF CARLSBAD Pi Policy No. 33 Date Issued June 9, Effective Date June Cancellation DateA Supersedes No. 5 /: COUNCIL POLICY STATEMENT General Subject: Community Activity Funding Specific Subject: Policy for use of 1915 Act Bonds Copies to: City Council, City Manager, City Attorney, Department and Divi: Employee Bulletin Boards, Press, File PROCEDURE: 1. It is the intention of the City Council that proponents of a an early opportunity to have the proposal reviewed by ( compliance with this policy. In that regard, the City Coi directs the creation of the Project Review Committee. The shall consist of the City Manager, City Attorney, Development Director, Planning Director, City Enginee. Management Director (Chairperson), Finance Director, Utilities and Maintenance and City Assessment Engii Committee shall meet on request with proponents of i review a project to determine whether or not the requiren policy have been satisfied. Committee review shall take pl the presentation of an assessment district project to the C Whenever any such project is presented to the Council accompanied by a report containing the findings and recom of the Committee made in regard to such project. The may require the proponents to furnish any information necc evaluation of the proposed district. The Committee may rt any part of the deposits provided for in this policy to be mi commencing their review of the project. Upon review of the proposed assessment district and after the report of the Committee, the City Council shall determ or not to approve proceeding with the formation of the d the policy of the City Council of the City of Carlsbad to lii to the criteria set forth in this policy. The City Council itself the authority to approve or disapprove any improvement district based upon the evidence received at t held by the City Council. Any exceptions to the criteria oj will be approved only upon an express finding by the City ( the project is so affected with a public interest that the ( assist in providing tax free financing for the improvement satisfy a public need. If the City Council approves proceed. formation of the district, City staff and the proponents sh to do that in accordance with State law and the requirem policy. 2. i CITY OF CARLSBAD P Policy No. 33 Date Issued June 9 Effective Date June Cancellation Dated Supersedes No. 5/ COUNCIL POLICY STATEMENT General Subject: Community Activity Funding Specific Subject: Policy for use of 1915 Act Bonds Copies to: City Council, City Manager, City Attorney, Department and Divi Employee Bulletin Boards, Press, File 3. Where there are multiple proponents of a proposed distr, designate a spokesman authorized to act for the propon dealings with the City. The spokesman shall be res1 collecting any fees for deposit with the City, providing ar information to the City, and for communicating as necesz the proponents. F:\USERS\TGERE\WPDATAWOl-33NO2.D~ L * 8 87100.1. Financial interests in governmental decisions: registered professional engineers or licensed land surveyors rendering professional services as consultants (a) A registered professional engineer or licensed land surveyor who renders professional seAces as a consultant to a state or local government, either diiecffy or through a fii in which he or she is Section 87100 where the consultant renders professional engineering or land sumeying services independently of the control and direction of the public agency and does not exercise public agency decisionmaking authority as a contract city or county engineer or surveyor. b) For purposes of this section, the consu!tant- renders professional engineering or land sumeying semces independently of the conmi and drecnon of the public agency when the consultant IS in responsible charge of the work pursuant to Section 6703 or 8703 of the Business and Professions Code. (c) Subdivision (a) does not apply to that portion of the work that constitutes the recommendation of the actual formula to spread the costs of an assessment district's improvements if both of the following apply: (1) The engineer has received income of two hundred fifty dollars ($250) or more for professiond services in connection with any parcel included in the benefit assessment district within 12 months prior to the creation of the district (2) The district includes other parcels in addition to those parcels for which the engineer received the income. ._ The recommendation of the actual formula does not include preliminary site studies, pi*- engineering, pians, specifications, estimates, compliance with environmentai laws and regulafaom or the collection of data and information, utilized in applying the formula (Added by Stats.1991, c. 887 (S.B.883), 8 1, eff. Om 14, 1991.) - employed or is a principal, does not have a financial interest in a governmental &&ion pmwt to . .A _- -. Additions or changes indicated by underline; deletions by astedsks 238 c THE PROPERn WHICH BUYERS ARE PROPOSING TO PURCHASE IS SUB SiGNlFlCANT ASSESSMENT WHICH IS IN ADOITION TO THE REGUUR PROP€ THIS ASSfiSSMENT WILL AFFECT THE AMOUNT WHICH BUYERS WILL 8E RE PAY iN THE PURCHASE OF BUYERS PROPERTY. PROPERTY. YOU ARE URGED TO NOTICE V€RY CAREFULLY IN ORDER TO UNDERSTAND THE ASSESSMENT A( r The City of Carlsbad ('City') has formed a special assessment district pursuant to the provisions of the 'Municipal Improvement Act of 1913' to finance the acquisition or construction of certain public works of improvement which will benefit the properties within the assessment district. This assessment is known and designated as ASSESSMENT DISTRICT NO. 88- 1 (ALGA ROAD) (the 'Assessment District'). The public improvements to be financed through the Assessment District include portions of Alga Road and Poinsettia Lane, including related grading and earth work, construction of water, sewer, drainage and reclaimed water facilities. curb, gutter, sidewalk, street paving, the installation of street lights and median landscaping. ASSESSMENT The home or parcel which 8qers are proposing to purchase (the 'Property') is located within the boundaries of the Assessment District. The C.ty has determined that the Property will receive a direct and special benefii from the public works of improvement to be financed through the Assessment District, therefore, the City has levied an assessment against the Property in the total amount of $ ~ The assessment against the Property is secured by a lien much like a home loan is secured by a deed of trust. If you complete the purchase of the Property and assume the assessment against the Property, you will be solely responsible for the payment of the assessment. The assessment shall be collected in semi- annual installments which will be property tax bill for the Pro assessment installments will be period of years. FAILURE TO PAY Should you fail to pay ai installment when due, the City rr to initiate judicial foreclosurc against the Property in order 1 delinquent assessment instah penatties which may be impos delinquency. In the event that t to obtain a favorable court r foreclosure proceedings, the Pro subject to foreclosure sale. You, as Byer, are not required assessment against the Prope required to provide you with the 1 (a) assume the assessment ob1 the Property or (b) prepay the as to the close of escrow for tF Property to you. You will have the ability to exerc through a 'Property Buyer Speci Option Agreement (Supplemer Instruction)' (the 'Option Agreem which is attached to this Notice. Should you have any questions r this Notice, or the Option Agree feel free to call the Finance Direc of Carisbad at the following telef (61 9) 434-2867. PLEASE INSURE THAT YOU HAVE THOROUGHLY AEAD AND UNDERSTAND E NOTICE AND THE OPTION AGREEMENT APPLICABLE TO THE PROPERN. Tb THAT YOU CHOOSE WILL AFFECT THE PAYMENTS WHICH YOU WILL 9E MAKl PURCHASE OF THE PROPERTY. r TO PROPERM BUYER: PLEASE READ THIS OPTION AGREEMENT CAREFULLY AN YOU THOROUGHLY UNOERSTANO THE OPTIONS BEING PROVIDED TO YO SELECTlNG AN OPTION* THE OPTION YOU CHOOSE WILL AFFECT YOUR PAYMEN HOME YOU ARE PURCHASING. IT IS IMPORTANT TO NOTE THAT IF THE BUYER FAILS TO PAY AN AS: INSTALLMENT WHEN DUE, THE CITY MAY BE REQUIRE0 TO INITIATE FORECLOSURE PROCEEDINGS AGAINST THE BUYER TO RECOVER ANY DE ASSESSMENT INSTALLMENT AND ANY PENALTIES ON THE DELINQUENT INS1 CITY WILL BE REQUIRED TO INITIATE SUCH FOREClOSURE PROCEEDINGS THAN THE NOVEMSER 1ST FOLLOWING THE DATE OF THE DELINQUENCY. r OPTION 1: Buyer wishes to assume the special assessment obligation appl Property and pay the assessment installments semi-annually as on the property tax bill for the Property. To select and exercisc 1, 8uyer must sign on the space provided below: DATE: .. DATE: DATE: t 0 0 I. 5. Buyer acknowledges that if Buyer chooses to assume the assessment obligation fc that the City of Carisbad shall consider that Buyer fully understands !he nature Buyer's obligations to make the payment of the assessment installments. Buyer amount and purpose of the assessment on the Property and Buyer forever waivc complaint or protest to the City pertaining to the nature, extent, duration and assessment against the Property. 6. Escrow Officer is hereby directed to deliver an executed copy of this Option ~g Finance Department of the Cty of Carisbad for execution prior to the close of I DATED: BUYER BUYER DATED: SELLER DATED: ESCROW OF FlCER CIlY ACKNOWLEDGMENT RECEIVED AND ACKNOWLEOGED THIS I DAY OF , 1990 FINANCE DIRECTOR, CfIY OF CARLS8AD 0% CITY OF CARLSBAD pa< Policy No. 38 COUNCIL POLICY STATEMENT Date Issued 10-13 Effective Date 10-13 Cancellation Date General Subject: Assessment District Financing of Public Improvements Supersedes No. Specific Subject: Policy for use of the Mello-Roos Community Facilities Act of 1982 Copies to: City Council, City Manager, City Attorney, Department and Divit Employee Bulletin Boards, Press, File The City Council has adopted a Growth Management Pro1 contemplates the construction of a large number of various public the coming years. Community Facilities Act of 1982 provides a flexible tool which m in providing financing for the construction of public facilities in with development. The City Council anticipates that from time to time they will rece BACKGROUND: The City Council recognizes that the from property owners of major planned developments to use the legislation for the construction of public facilities. To establish a policy which will permit the use of the Mello-Roos Facilities Act to assist in providing needed public facilities. To provide a procedure for processing applications for Comml District financing and to provide a staff committee to review such and to consider initiating Districts for Council considera appropriate. This policy is primarily intended to apply to Community Faci proposed for property which is predominantly undeveloped wh elects to use public financing for appropriate public improveme PURPOSE POLICY: 1. The City may allow the financing of public improvement under the provisions of this policy where the public facilitit represent, in the City’s opinion, a significant public bene Facilities which may be considered shall be public facilitii benefit such as administrative facilities, libraries, fire st2 schools, a major drainage facilities, arterial highways, n and freeway interchanges. The City Council may suppa Mello-Roos District financing for other public facilities i significant public benefit can be made. 2. CITY OF CARLSBAD Pa€ COUNCIL POLICY STATEMENT Date Issued 10-13-1 Effective Date 10-13 Cancellation Date Policy No. 38 General Subject: Community Activity Funding of Public improvements Supersedes No. Specific Subject: Policy for use of the Mello-Roos Community Facilities Act of 1982 Copies to: City Council, City Manager, City Attorney, Department and Divis Employee Bulletin Boards, Press, File 3. For all Districts, the City shall select the special tax cons1 counsel, and, if required, the financial consultant. The desi and the underwriter will also be selected by the City but in I consultant and financial consultant shall provide the 1 Statement of Conflict of Interest related to real estate holc the district. The design engineer shall provide a Statemen of Interest as required under Section 87100.1 of the Goven (see attached). Where Districts are initiated by property owners, a sum pay all fees and costs for the proposed Community Facil shall be deposited with the City by the proponents of the ( to award of any contract. The proponents shall also be deposit with City a sum sufficient to cover all City costs connection with review of a proposed district including I legal review, administration, plan checking, investigation, 1 review and inspection. These sums will be retained by degree used if the district is not successfully completed or are not recovered by City from the district. Where tl successfully completed, deposits may be credited agai reimbursed by the district under the terms of a prior agr If the City Council determines it is necessary, a financ market absorption study may be required prior to in District. Where such a study is required, the City will sele the consultant with funds deposited by project propo expected that the project property value to-debt ratio shoi than 4:l after the installation of the improvements to be project may be approved with a ratio between 4:l and a 3:l if the ratio is recommended by both bond cour underwriter and if the City Council finds the reduced ratic parameters acceptable to them. The value of the prope to be taxed shall be determined by an M.A.I. appraisal, 1 with proponents of the District. The bond counsel, 4. 5. an appraiser selected by the City. CITY OF CARLSBAD Pa Policy No. 38 COUNCIL POLICY STATEMENT Date Issued 10-13- Effective Date 10-1: Cancellation Date General Subject: Community Activity Funding of Public Improvements Supersedes No. Specific Subject: Policy for use of the Mello-Roos Community Facilities Act of 19!32 Copies to: City Council, City Manager, City Attorney, Department and Divi5 Employee Bulletin Boards, Press, File 6. Property owners for all Districts will be required to provide complete disclosure of any Community Facilities District or District financing applicable to the property to prospective The disclosure should include at a minimum the followinl a. b. c. d. If the tax formula is such that a list of known payments fc can be computed, a complete list of payments for each computed, a complete list of payments for the term of thl The maximum tax on the property; The duration of the tax; A list of the specific facilities the tax is for; and The tax formula used in easily understood terms. be made for each parcel. The Disclosure Program shall be designed by the City in I with the City’s financing team and the property ow Disclosure Program will be subject to Council approva Council’s goal is to provide complete and concise disclc subsequent property purchaser. The disclosure progr similar to that suggested under Council Policy 33. The City or a consultant selected by the City will determir formula. The prime emphasis in this determination will b the future property owner who will be paying the taxes Although this policy does not fix the method of dete formula, strong consideration should be given to (a) a amount or (b) a fixed amount increased annually 7. percent age. 8. To the extent that the Community Facilities District has to finance the construction of public infrastructure, it is 1 policy that any and all future tax obligation related to a CITY OF CARISBAD Pa1 Policy No. 38 COUNCIL POLICY STATEMENT Date Issued 10-134 Effective Date 10- Cancellation Date General Subject: Community Activity Funding of Public Improvements Supersedes No. Specific Subject; Policy for use of the Mello-Roos community Facilities Act of 1982 Copies to: City Council, City Manager, City Attorney, Department and Divis Employee Bulletin Boards, Press, File parcel be discharged in full at the time building permits ai construction of a residential unit. Builders of non-resident shall be provided with the option of discharging their obligation at the time building permits are pulled, or a developed property to assume the tax liability basis. PROCEDURE: 1. Proponents desiring to form a Mello-Roos district shal application requesting a study for the establishment of a Facilities District which shall do all of the following: a. Request the City Council to consider proceedings a Mello-Roos Community Facilities District. Describe the boundaries of the territory proposed : in the District. c. State the types of facilities to be financed by the I d. Provide a detailed financial alternative analys alternative funding options and demonstrating the which make a Mello-Roos Community Facilities most desirable financing mechanism for thi improvements . Be signed by not less than ten (10%) percent of tl voters residing within the proposed District or by c District. b. e. less than 10 (10%) percent of the land area within 1 2. It is the intention of the City Council that proponents have an early opportunity to have the proposal reviewed for compliance with this policy. In that regard, the City Cc directs the creation of the Project Review Committee. Th shall consist of the City Manager, City Attorney, Development Director, Financial Management Director (C CITY OF CAFCSBAD PS Policy No. 38 COUNCIL POLICY STATEMENT Date Issued 10-13- Effective Date IO- Cancellation Date- General Subject: Community Activity Funding of Public Improvements Supersedes No. Specific Subject: Policy for use of the Mello-Roos Community Facilities Act of 1982 Copies to: City Council, City Manager, City Attorney, Department and Divi Employee Bulletin Boards, Press, File Finance Director, Planning Director, City Engineerin( Assessment Engineer. The Committee shall meet on 1 proponents of a district to review a project to determine not the requirements of this policy have been satisfied. review shall take place prior to the presentation of a Facilities District project to the City Council. Whenev containing the findings and recommendations of the Com in regard to such project. The Committee may require the to furnish any additional information necessary to the evali proposed District. Upon review of the proposed Community Facilities Distr considering the report of the Committee, the City C determine whether or not to approve proceeding with tl- of the District. It is the policy of the City Council of Carlsbad to limit projects to the criteria set forth in this City Council reserves to itself the authority to approve 01 any proposed Community Facilities District based upon 1 received at the hearings held by the City Council. Any e the criteria of this policy will be approved only upon an ex by the City Council that the project is so affected with a pi that the City should assist in providing tax-free financ improvement in order to satisfy a public need. If the ' approves proceeding with the formation of the District, ( the proponents shall proceed in accordance with State requirements of this policy. Where there are multiple proponents of a proposed Distric designate a spokesman authorized to act for the propon dealings with the City. The spokesman shall be res collecting any fees for deposit with the City, providing a information to the City, and for communicating as neces the proponents. project is presented to the Council it shall be accompanied 3. 4. F:\USERS\TGERE\WPDATA\POL38N02.DFT a * -- 8 87100.1. Financial interests in governmental decisions: registered professional engineers or licensed land surveyors rendering professional services as consultants (a) A registered professional engineer or licensed land surveyor who renders professional services as a consultant to a state or local government, either directly or through a fii in which he or she is employed or is a principal, does not have a financial interest in a governmental decision pursuant to Section 87100 where the consultant renders professional engineering or land surveying services independently of the control and direction of the public agency and does not exercise public agency decisionmaking authority as a contract city or county engineer or surveyor. (b) For purposes of this section, the consultant renders professional engineering or land surveying services independently of the control and direction of the public agency when the consultant is in responsible charge of the work pursuant to Section 6703 or 8703 of the Business and Professions (c) Subdivision (a) does not apply to that portion of the work that constitutes the recommendation of the actual formula to spread the costs of an assessment district’s improvements if both of the following apply: (1) The engineer has received income of two hundred fifty dollars ($250) or more for professional services in connection with any parcel included in the benefit assessment district within 12 months prior to the creation of the district. (2) The district includes other parcels in addition to those parcels for which the engher received the income. The recommendation of the actual formula does not include preliminary site studies, pElminarY engineering, plans, specifications, estimates, compliance with environmental laws and re&atiO=, Or (Added by Stats.1991, c. 887 (S.B.883), 8 1, eff. Oct. 14, 1991.) - Code. - the collection of data and information, utilized in applying the formula. .* Additions or changes indicated by underline; deletions by asterisks 238