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RESOLUTION NO. 2017-126 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING THE REMAINING FUNDS IN REASSESSMENT DISTRICT NO. 2005-01 AS SURPLUS, ORDERING THE DISPOSITION OF SURPLUS AMOUNTS, APPROVING THE ASSESSMENT DISTRICT CLOSEOUT ANALYSIS AND FINDINGS REPORT PREPARED BY NBS FOR REASSESSMENT DISTRICT NO. 2005-1, APPROVING THE DISTRIBUTION OF $533,079 OF REASSESSMENT DISTRICT NO. 2005-01 FUNDS FOR REFUNDING TO ELIGIBLE PROPERTY OWNERS, AMENDING THE FISCAL YEAR 2017/2018 OPERATING AND CIP BUDGET AND ESTABLISHING A NEW CIP PROJECT “RANCHO DEL REY PAVEMENT REHABILITATION (STL-429)” AND APPROPRIATING $306,950 OF ASSESSMENT DISTRICT NO. 87-1/ ASSESSMENT DISTRICT NO. 88-2 IMPROVEMENT FUNDS TO CIP STL429 (4/5 VOTE REQUIRED)
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
Assessment Districts were formed in the Rancho Del Rey area of the city to finance improvements needed as part of the subdivision. This work was completed, payment of all principal and interest due on the Refunding Bonds has been satisfied and surplus funds exist. Since the surplus funds can be used for maintenance of improvements, staff recommends creating a new capital improvement project “Rancho Del Rey Pavement Rehabilitation (STL-429)” for purposes of maintaining improvements completed in the benefited area until all funds are exhausted.
ENVIRONMENTAL REVIEW
Environmental Notice
Environmental Notice
The Project qualifies for a Class 1(c) Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act State Guidelines.
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Environmental Determination
The Director of Development Services has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 1(c) Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the State CEQA Guidelines. Thus, no further environmental review is necessary.
BOARD/COMMISSION RECOMMENDATION
Not Applicable
DISCUSSION
The City Council has, by previous resolution and related actions, undertaken proceedings pursuant to the Municipal Improvement Act of 1913 to form and confirm assessments in two special assessment districts known and designated as Assessment District No. 87-1 and Assessment District No. 88-2 (Assessment Districts) in the Rancho Del Rey area (Attachment 1). Assessment District No. 87-1 was formed to finance the acquisition of street (including utilities) and storm drain improvements, reclaimed water facilities, sewer service facilities, and a portion of the capacity of major sewer mains. The City also formed Assessment District No. 88-2 to finance the acquisition of public works, including street, water, sewer, drainage and utility improvements (Attachment 2). In 2005, the City consolidated and reassessed Assessment District No. 87-1 and Assessment District No. 88-2 as Reassessment District No. 2005-1 (Reassessment District).
The City authorized the consolidation and reassessment of the Assessment Districts as the Reassessment District, and authorized the refunding of the Original Bonds by the issuance of $3,525,000 Reassessment District No. 2005-1, 2005 Limited Obligation Refunding Bonds (Refunding Bonds), pursuant to the Refunding Act of 1984 for 1915 Act Improvement Bonds. The payment of all principal and interest due on the Refunding Bonds has been satisfied and surplus funds exist.
The Refunding Bonds matured with the final scheduled debt service payment on September 1, 2014. Following the final debt service payment, surplus fund balances remained on behalf of the Reassessment District. The City retained NBS, a consultant firm with expertise in this area, to review and perform an assessment district closeout analysis and prepare an Assessment District Closeout Analysis and Findings Report (Closeout Report) for the Reassessment District. The Closeout Report summarizes the recommendations for the disposition of the remaining funds in accordance with applicable laws and documents for the Refunding Bonds and the Revenue Bonds (Attachment 3).
Consistent with the consultant’s recommendation, Council is being asked to authorize:
• The transfer from the “95 Assessment Bond Refin Redemption Fund” (Fund 816) to the “AD 88-2 Reassessment Dist 05-1 Fund” (Fund 849) an amount of $15,464 due to unrecovered City Administrative Expenses;
• The transfer from the “95 Assessment Bond Refin Redemption Fund” (Fund 816) to the “East H St. AD87-1 Improvement Fund” (Fund 503) an amount of $36,183 and to the “Otay Lakes Rd AD88-2 Improvement Fund” (Fund 501) an amount of $48,005 due to fund eligibility for Maintenance of the Improvements;
• $16,500 appropriated from the “95 Assessment Bond Refin Redemption Fund” (Fund 816) Supplies and Services for Closeout Report Fee, Printing & Mailing Fees and;
• $533,079 appropriated from the “95 Assessment Bond Refin Redemption Fund” (Fund 816) Other Expenses for refunding to Eligible Property Owners; the requested appropriations will be made from the “95 Assessment Bond Refin Redemption Fund” (Fund 816).
Since a portion of the surplus funds can be used for maintenance of improvements, staff recommends creating a new capital improvement project “Rancho Del Rey Pavement Rehabilitation (STL429)” for purposes of maintaining improvements completed in the benefited area until funds are exhausted (Attachment 4). The total amount of funds available for street rehabilitation purposes is $306,950. The highest priority repair in the benefit area is Tierra Del Rey from the north of the intersection with East H Street to a point to the north. If the capital improvement project “Rancho Del Rey Pavement Rehabilitation (STL429)” costs less than the appropriated amount of $306,950, any remaining funds shall be transferred to the General Fund. Staff’s intention is to begin the work on Tierra Del Rey and work northwards to a point where all of the funds are exhausted.
DECISION-MAKER CONFLICT
Conflict but Exception - Will not Affect Real Property Value
Staff has reviewed the property holdings of the City Council members and has found that Councilmember Aguilar and Councilmember McCann have real property holdings within 500 feet of the boundaries of the property which is the subject of this action. However, to the extent that any decision would have a reasonably foreseeable financial effect on the member’s real property, the effect would be nominal, inconsequential, or insignificant. Consequently, pursuant to California Code of Regulations Title 2, sections 18700 and 18702(b), this item does not present a real property-related conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware, and has not been informed by any Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
Conflict but Exception - Solely Concerns Repair/Replacement/Maintenance (STL-429 CIP)
Staff has reviewed the property holdings of the City Council members and has found that Councilmember Aguilar and Councilmember McCann have property holdings within 500 feet of the boundaries of the property which is the subject of this action. However, the decision solely concerns repairs, replacement or maintenance of existing streets, water, sewer, storm drainage or similar facilities. Consequently, pursuant to California Code of Regulations Title 2, sections 18700 and 18702.2(c)(1)), this item does not present a real property-related conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware, and has not been informed by any Councilmember, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The goal of the “Rancho Del Rey Pavement Rehabilitation (STL429)” project is to support the Strong and Secure Neighborhood strategy identified in the City’s Strategic Plan. The maintenance and rehabilitation of public infrastructure is a key City function in providing a safe and efficient roadway system for residents, businesses and visitors alike.
CURRENT YEAR FISCAL IMPACT
Approval of the resolution would amend the FY2017-18 CIP and authorize the establishment of the new CIP “Rancho del Rey Pavement Rehabilitation (STL429)” project by appropriating $306,950 of Assessment District No. 87-1/Assessment District No. 88-2 Improvement Funds & Reassessment District Redemption Fund to CIP STL429.
Approval of the resolution would also amend the FY2017-18 operating budget per the consultant’s recommendation associated with the 95 Assessment Bond Refin Redemption (Fund 816), AD 88-2 Reassessment District 05-1 (Fund 849), East H Street AD 87-1 Improvement (Fund 503) and Otay Lakes Rd AD 88-2 Improvement (Fund 501) Funds as described in this report.
ONGOING FISCAL IMPACT
Upon completion of the project, the improvements will require only routine City street maintenance. Since the improvements are anticipated to increase the life of the streets included, there should be a positive long term fiscal impact.
ATTACHMENTS
1. Assessment District 87-1 & 88-2 boundary map.
2. Improvements to be financed by Assessment Districts 87-1 & 88-2.
3. Reassessment District No. 2005-1, Assessment District Closeout Analysis and Findings Report.
4. Rancho Del Rey Pavement Rehabilitation list of streets for CIP STL-429.
Staff Contact: Francisco X. Rivera P.E., T.E., Principal Civil Engineer
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