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Home My WebLink About1996-05-28 - AGENDA REPORTS - GOLDEN VALLEY ASMT DIST (2)AGENDA REPORT CityAManarApproval Item to be presented by: Steve Stark NEW BUSINESS DATE: May 28, 1996 SUBJECT: GOLDEN VALLEY ASSESSMENT DISTRICT 92-2 UPDATE DEPARTMENT: Administrative Services Assessment District 92-2 was formed by the City in 1992 for the purpose of acquiring public road improvements to be completed by five developers. These improvements include road improvements, sidewalks, curbs and gutters, street lights, storm drain improvements, undergound utilities and landscaping in median and alongside Golden Valley Road. The City initiated the sale of bonds (upon request by the developers) to pay for the City's acquisition of those public improvements. Payment on any bonds issued were to be made by those property owners located within the Assessment District boundaries. The completion of the sale of bonds was unexpectedly halted by a lawsuit in November 1992 between the City and each of the developers (original) to have the court determine enforceability of the agreement. The lawsuit has since been resolved with the finding that the City and AMCAL may proceed with the issuance and sale of bonds related solely to the AMCAL development. AMCAL, Tract 48117, located at the eastern end of Golden Valley, has constructed 104 single-family dwellings and has sold 94 of those dwellings to individual homeowners. Since AMCAL has moved forward to complete its portion of public improvements to satisfy its requirements under the Agreement, it is staffs recommendation at this time that the City proceed with the sale of bonds in an amount not to exceed $879,432 (AMCAL's original portion of bonds for AD 92-2). The original assessment engineer,Willdan Associates; financial advisor, Fieldman, Rolapp & Associates; bond counsel, Jones, Hall, Hill & White; underwriter, PaineWebber and fiscal agent, First Trust National Association have been retained to complete the sale. The City completed the legal proceedings to form AD 92-2 in 1992. On June 23, 1992, a public hearing was held at which there were no protests. The Council adopted Resolution No. 92-81, establishing AD 92-2, approving the assessment engineer's report and levying assessments in the amounts shown in the report. The cash collection period was waived by the property owner. Although not legally required, it is recommended by staff that the current homeowners (who were expressly notified about the assessment district by AMCAL via written notice when homes were purchased) be given the opportunity to pay their assessments in full during a 30 -day cash collection period beginning May 29 and ending June 28. The homeowners will realize a discount of approximately 12.5%o if they pa t is in cash during the cash collection Agenda Item:j# GOLDEN VALLEY ASSESSMENT DISTRICT 92-2 UPDATE May 28, 1996 - Page 2 period, because their portion of debt will not be financed (the discount reflects the 10% bond reserve fund and maximum 2.5% underwriter's discount). It is anticipated at this time that those property owners who pay in full during the cash collection period will receive a refund check when bond proceeds have been received by the City. On May 13, 1996 staff met with the homeowners to discuss their concerns. Attachment A itemizes questions and answers that came as a result of this meeting. Staff proposes at this time to complete the sale of bonds for the AMCAL portion of AD 92-2 as follows: 1. Willdan will mail notices to homeowners advising them of their assessments and provide them an opportunity to receive a discount of approximately 12.5% if they fully pay their assessment in cash before June 28. 2. AMCAL will receive construction bids for the remaining portion of the public improvements to be constructed. AMCAL will comply with the requirement to pay prevailing wages. 3. The amount to bond will be determined by Willdan at the end of the cash collection period. 4. At the City Council meeting of June 11, the City will reapprove the updated Preliminary Official Statement and Fiscal Agent Agreement covering bonds for the AMCAL project and approve the sale of the bonds to the underwriter within certain parameters regarding interest rate and discount. 5, The City's financial advisor will assist the City with its bond negotiations, including terms and conditions of the underwriter's purchase contract, interest rates and final discount on the bonds. 6. Closing documents, the final Official Statement and bonds will be prepared. 7. Bonds will be delivered to the underwriter, and proceeds will be received by the City on or about July 24, 1996.. AMCAL will be reimbursed for costs incurred in constructing public improvements after July 24, as its invoices are approved by the City. It is staffs intention to complete the financing by August 1 to be certain the assessments are on the 1996/97 property tax roll. A cost savings (capitalized interest) is achieved if this can be accomplished. RECOMMENDATION City Council accept report for informational purposes only, ATTACHMENTS Attachment A - Questions and Answers from May 13, 1996 Homeowner's Meeting Attachment B - Listing of Included Improvements and Assessment Attachment C - Vicinity Map SS:BB:hds .v INgdd.ubb ATTACHMENT A QUESTIONS AND ANSWERS FROM MAY 13, 1996 MEETING WITH GOLDEN VALLEY HOMEOWNERS Q. Why build the road now? (this was the most frequently asked question) A. The construction of the road is a condition of approval for the development (Tract No. 48117) because it must be constructed by the developer before the expiration of the acquisition agreement, which was July 1994, and was extended as a result of the lawsuit. Thus, since the lawsuit has been settled, the developer's obligation is to install the improvements now with time allotted for bidding and construction, i.e., approximately four months. Any phased construction would require more funds to complete. Q. Why do the homeowners have to pay for this district now? (second most asked question) A. The obligation to pay began in 1992, when the District was approved by the City and the liens recorded. Homeowners make payments after bonds are sold to pay for the improvements. Since bonds will be sold in June, the fust payment to retire (pay off) the bonds will begin on the 1996197 property tax bill. Q. Why will there be no traffic light at Golden Valley and Green Mountain? A. Projected traffic volumes did not warrant a signal being installed at this time. One was proposed at Sierra Highway and Golden Valley Road. Q. Keep Golden %alley as it is (two lanes) with the rest as a green belt. A. The four lane roadway is included in the City's General Plan. By constructing only partial improvements now, several problems would be created, which include drainage and increased costs. Q. Proper disclosure was not made by the sales office. Amounts were wrong or never disclosed. The lien was not on title reports, nor was it disclosed. A. The City has reviewed several copies of disclosure notices signed by property owners indicating the assessment and assessment amount. We also have a copy of the lien notice recorded with the County Recorder that, unless a mistake was made by the Title Company, is shown on the title report received by each property owner. We have no information to substantiate the comments made by personnel at the sales office. Q. How can the City discourage through traffic? A. The City's traffic division will do a study to determine what is the extent of the problem and how best to solve it. The fact that there is through traffic is not a problem in and of itself. Page 1 of 2 ATTACHMENT A ATTACHMENT A QUESTIONS AND ANSWERS FROM MAY 13, 1996 MEETING WITH GOLDEN VALLEY HOMEOWNERS May 28, 1996 - Page 2 Q. Why weren't the surrounding property owners(other than property owners within the District) notified of this district or of this meeting? A. The state statutes do not require notification to anyone outside of the district However, the surrounding property owners were notified when the tentative map was heard by the Planning Commission. In addition, the entire community did have access to the public hearing process of the General Plan, which identified Golden Valley Road as a major thoroughfare. Q. Why build this section of Golden Valley between Green Mountain and the Freeway now? Why not wait until the entire length from Sierra Highway to the Freeway is constructed? Wouldn't this cost less? A. Each development must install the portion of roadway within the development's boundaries when development occurs. To avoid problems with changing widths of roadways, the City does not allow the exception to occur. Building the eight hundred feet of road now versus waiting for a longer portion to be built would not necessarily save money or result in lower costs. .S< WOMMMNJJ Page 2 of 2 ATTACHMENT A CITY OF SANTA CLARITA GOLDEN VALLEY ROAD ASSESSMENT DISTRICT 92-2 Improvements Include: • Road improvements, 4 lanes from Hwy 14 to Green Mountain Drive • Sidewalks, Curbs and Gutters • Street Lights • Storm Drain Improvements in Golden Valley Road and within the subdivision • Underground Utilities in Golden Valley Road. • Landscaping in median and alongside Golden Valley Road rr rr w n B Total Parcels: 104 � Assessment Per Parcel: $8,456 rt Annual Payment will be approximately: $845 w Length of Payment Term: 29 years ATTACHMENT 'C' City of Santa Clarita Golden Valley Assessment District 92-2 AMCAL Vicinity Map M ONTAIN AMCAL TRACT NO. 48117 T m Z c l� `m t PSP OFF � Ov�O �N6 / 50J Py P Q X09 J�J 50