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HomeMy WebLinkAbout12-08 • • RESOLUTION NO. 12-08 A RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF LOS ALTOS HILLS INITIATING PROCEEDINGS PURSUANT TO THE MUNICIPAL IMPROVEMENT ACT OF 1913 FOR THE CONSTRUCTION OF SEWER WORKS AND IMPROVEMENTS IN THE WEST LOYOLA NEIGHBORHOOD ********************** IT IS HEREBY RESOLVED by the City Council of the Town of Los Altos Hills as follows: 1. The residents of the West Loyola neighborhood comprising 53 parcels along West Loyola Drive, Berkshire Drive, Eloise Circle, Chardonnay Lane and parts of Roily Road circulated a petition by and amongst themselves as to whether to request the City Council form an assessment district to pay for the construction of sewer improvements in the neighborhood. 2. Having received a petition from eighty-five percent(85%) of the residents of the West Loyola Neighborhood in favor of forming a benefit assessment district the City Council proposes to initiate proceedings to form an assessment district pursuant to the Municipal Improvement Act of 1913 (being Section 10000 and following of the California Streets and Highways Code, hereinafter the "Act") and to assess the costs thereof upon the properties benefited by the construction(as defined in the Act) of sewer works and improvements (herein"the sewer work"), all in connection with the proposed West Loyola Sewer.Assessment District No. 1 (the "Assessment District"). 3. The costs and expenses of the proposed construction work are to be chargeable upon said Assessment District, the exterior boundaries of which are the exterior boundaries of the composite and consolidated areas as more particularly shown on a map filed in the office of the City Clerk,titled"Boundary Map West Loyola Sewer Assessment District No. 1", which indicates by a boundary line the extent of the territory included in the proposed Assessment District and shall govern for all details as to the extent of said Assessment District. 4. The Town will issue bonds having a thirty(30)year term or such other term or terms as advised by bond counsel that would be secured and paid for by assessments on the benefited property owners. The assessments would be collected as part of the property tax bills for the benefited properties over the bonds' term(s). Through the assessment process, benefited property owners would pay (1) all costs to design and construct the sewer line and the lateral to their properties, (2) the interest on the bonds, (3) the costs of issuance (bond counsel, engineer, etc.) and(4) connection fees for the parcels of the benefit assessment district. Each of the parcels would be assessed equally for all costs, expenses and fees. The Town would construct and own the main line. 5. The involved construction work is hereby referred to the Engineer of Work, being a competent person employed by the City Council for purposes of these proceedings, and the Engineer of Work is hereby directed to cause to be prepared and to be filed with the City Clerk, 1050929.1 Final • • an Engineer's Report in writing containing all matters required by Section 10204 and following of the California Streets and Highways Code,presenting the following: a. Plans and specifications showing and describing existing and proposed sewer improvements to be constructed; b. A general description of sewer works or appliances already installed and any other property necessary or convenient for the operation of the improvements, if the works, appliances, or property are to be maintained, serviced and/or operated as part of the improvements to be constructed; c. An Engineer's estimate of the costs and expenses of constructing the public lands and sewer improvements proposed to be constructed, being the total costs and expenses of constructing all existing and proposed public lands and sewer improvements, including all incidental expenses and any costs of registering bonds. If the City Council orders that private utility damages be included in the assessment,the report will contain an estimate of the private utility damages. The report will contain an estimate of the amount of the assessment for each of the first five years during which the assessment will be levied; d. A diagram showing all of the following: 1 the exterior boundaries of the Assessment District; (2) the boundaries of any zones within the Assessment District; and (3) the lines and dimensions of each parcel of land within the Assessment District; each subdivision, including each separate condominium interest as defined in Section 783 of the Civil Code if any, shall be given a separate number on the diagram. e. A proposed assessment of the total amount of the costs and expenses of constructing the public lands and sewer improvements proposed to be constructed upon the several parcels of land in said Assessment District in proportion to the estimated benefits received by such parcels, respectively, from said construction of said public lands and sewer improvements and of the expenses incidental thereto. When any portion or percentage of the costs and expenses of the proposed construction work is to be paid out of the City's treasury,pursuant to Section 10201 of the California Streets and Highways Code, the amount of such portion or percentage shall first be deducted from the total estimated costs and expenses of the construction of the sewer improvements, and the assessment upon property proposed in the report shall include only the remainder of the estimated costs and expenses; and f. A proposed maximum annual assessment upon each of the several parcels of land in the Assessment District to pay costs incurred by the Town and not otherwise reimbursed which result from the administration and collection of assessments or from the administration or registration of any associated bonds and reserve or other related funds. 1050929.1 Final • • 6. The City Council directs staff to prepare an Engineer's report for the proposed assessments to the benefited property owners for the benefit of the Assessment District and authorizes staff to execute all agreements with bond counsel, a financial consultant and other professionals, as appropriate,to begin the Assessment District formation process. The Engineer's Report will be presented in a separate resolution to the City Council for approval and initiation of proceedings to authorize the assessment and sell bonds, all in accordance with the procedures set forth in state law. All costs associated with the new improvements, including engineering, legal and other Professional expenses, staff expenses and connection fees for the benefited parcels will be chargeable to and paid for from Assessment District funds. The construction of the improvements will not affect the City's general fund. 7. The City Council directs staff to prepare for review and signature by a majority of the affected property owners a reimbursement agreement for all costs, including preparation of the engineer's report, staff time and legal expenses, that will be incurred to prepare all of the materials to form the Assessment District before any work is started following the City Council's action. The reimbursement agreement shall also include a provision that if a majority of benefited parcel owners vote in favor of formation of the Assessment District,then upon formation of the Assessment District and issuance of the bonds all costs related to the preparation of the engineer's report, staff time and legal expenses shall be chargeable to and paid by the Assessment District. Staff shall begin work related to the preparation and formation of the Assessment District upon a majority of the benefited parcel owners signing the reimbursement agreement and making the necessary deposit and the Town receiving full payment for the expenses identified herein. 8. The public interest and convenience will be served by initiating the proceedings referenced herein. THE CITY COUNCIL FURTHER RESOLVES that the City Manager is directed to hire or contract with and execute documents with all persons or professionals to assist with accomplishing this resolution's directives where and as appropriate, including but not limited to a financial consulting firm and bond counsel. PASSED AND ADOPTED at a regular meeting of the City Council of the Town of Los Altos Hills duly held on the 24th day of January, 2008, by the following vote: Ayes: Mayor Craig A.T. Jones, Vice Mayor Jean Mordo, Councilmember Breene Kerr and Councilmember Mike O'Malley Noes: None Abstain: None Absent: Councilmember Dean Warshawsky 1050929.1 Final • • . Mayor ATTEST: City Cler1 - 1050929.1 Final • i REIMBURSEMENT AGREEMENT This Reimbursement Agreement ("Agreement") is entered into this 28` day of 161/ , 2008, by and between the Town of Los Altos Hills, a municipal corporation of the State of California ("Town") and the residents of the West Loyola Neighborhood (the "Residents") as represented by the Residents' Committee members executing this Agreement (collectively,the "Parties"). RECITALS: A. The residents of the West Loyola neighborhood comprising 53 parcels along West Loyola Drive,Berkshire Drive,Eloise Circle, Chardonnay Lane and parts of Roily Road circulated a petition by and amongst themselves as to whether to request the City Council form an assessment district to pay for the construction of sewer improvements in the neighborhood. B. Having received a petition from eighty-five percent(85%)of the residents of the West Loyola Neighborhood in favor of forming a benefit assessment district,the City Council proposed by resolution to initiate proceedings to form an assessment district pursuant to the Municipal Improvement Act of 1913 (being Section 10000 and following of the California Streets and Highways Code,hereinafter the"Act")and to assess the costs thereof upon the properties benefited by the construction(as defined in the Act)of sewer works and improvements(herein "the sewer work"), all in connection with the proposed West Loyola Sewer Assessment District No. 1 (the"Assessment District"). C. The Resolution provided that all costs associated with the new improvements, including engineering, legal and other professional expenses, staff expenses and connection fees for the benefited parcels would be chargeable to and paid for from Assessment District funds. The construction of the improvements would not affect the City's general fund. 1 D. The City Council directed Staff to begin the work necessary for the formation of the Assessment District,to include preparation of an Engineer's Report for the proposed. assessments to benefited property owners of the Assessment District and execution of agreements with bond counsel, financial consultants, and other professionals as appropriate,upon payment by the Residents of a deposit to the Town of the funds necessary to prepay in full the anticipated costs and expenses of the Engineer's Report, staff time and legal expenses to prepare the materials to form the Assessment District. The Resolution further provided that if a majority of the benefited property owners vote in favor of formation of the Assessment District,then upon formation of the Assessment District and the issuance of bonds,all such costs and expenses of formation of the Assessment District would be chargeable to and paid by the Assessment District, and the Residents would be reimbursed for their deposit. AGREEMENT NOW,THEREFORE,for good and valuable consideration,the receipt and adequacy of which are hereby acknowledged,the parties hereby agree as follows: 1. Prior to beginning any work related to the formation of the Assessment District, the Town shall collect from the Residents, and hereby acknowledges that it has collected from Residents, an initial deposit of twenty thousand dollars ($20,000) as an advance payment for the anticipated costs to form the Assessment District. The Residents agree to pay additional deposits as the City Engineer deems reasonably necessary to prepay the costs and expenses for the formation of the Assessment District such that the Town will receive full payment for all work related to the formation of the Assessment District. Town agrees to give Residents a statement of anticipated expenses and timely notice of any required additional deposits beyond the initial deposit sufficiently in advance to permit additional deposits so that work may continue without 2 • interruption. In the event the necessary additional deposits are not paid timely, Staff shall immediately cease work until the required funds are deposited with the Town. The Parties agree that there shall be no fiscal impact to the Town's general fund related to the formation of the Assessment District. 2. The Town agrees that deposited funds shall be used for and applied only towards the payment of costs and expenses reasonably related to forming the Assessment District, including staff time, professional and legal expenses, preparation of the Engineer's Report and all other materials, documents, agreements, resolutions and ordinances, as necessary. Having received the initial deposit, Staff will immediately begin work including acquiring information for a reasonable estimate of formation costs and necessary remaining deposits, and preparation of the Engineer's Report and other necessary documents. The Town agrees it shall work expeditiously towards the formation of the Assessment District. 3. If a majority of benefited parcel owners of the West Loyola Neighborhood vote in favor of formation of the Assessment District,then upon formation of the Assessment District and issuance of the bonds, all formation costs and expenses, including staff time, materials and legal and professional expenses, shall be chargeable to and paid for by the Assessment District, and the Town agrees that all funds prepaid as deposits for such costs and expenses shall be promptly reimbursed to Residents through the Residents' Committee, which shall be solely responsible for returning the funds to those Residents who contributed funds for the deposits. 4. In the event a majority of benefited parcel owners of the West Loyola Neighborhood do not vote in favor of formation of the Assessment District,Residents shall not be entitled to reimbursement by the Town for any portions of such prepaid deposits actually spent or committed by the Town for formation of the Assessment District;provided however,that any 3 • S balance of such deposits that remain unspent or for which the town has no legal obligation to pay out shall be promptly reimbursed to the Residents'Committee for return to the contributing Residents. 5. All regulations and applicable ordinances of the Town shall apply to this Agreement and to the performances hereunder. 6. The Resident's obligations under this Agreement shall automatically terminate upon payment for all Assessment District formation costs and expenses, as provided herein, and the Town's obligations under this Agreement shall automatically terminate upon reimbursement to Residents by the Town of such deposits or portions thereof as provided herein. 7. In no event shall this Agreement, and the obligations of the Residents or the Town hereunder terminate until all of the Town's costs and expenses are paid for in full. This Agreement shall automatically terminate upon repayment of all Assessment District formation costs and expenses by the Town to the Residents. 8. This Agreement may not be amended without a writing signed by both Parties. 9. All negotiations and agreements previously made by the Parties and their agents with respect to this transaction are merged into this Agreement, which completely sets forth the obligations of the Parties. 10. This Agreement shall be binding upon the successors, heirs and assigns of the Parties hereto, but the Residents shall not assign any of their rights under this Agreement without the prior written consent of the Town,which consent shall not be unreasonably withheld. 11. All notices and written correspondence between the Town and the Residents shall be addressed to the following persons, and sent to the following addresses: 4 For TOWN: Town of Los Altos Hills, City Manager, Town Hall, 26379 Fremont Road, Los Altos Hills, California, 94022 Copy to: Town of Los Altos Hills, City Engineer/Public Works Director, Town Hall, 26379 Fremont Road, Los Altos Hills, California, 94022 For Residents:Marj Green, 10666 W. Loyola Drive, Los Altos Hills, CA 94024 Copy to: Richard Larsen, 10580 Berkshire Drive,Los Altos Hills, CA 94024 The parties hereto have executed this Agreement effective as of the date written above. A • TO / OF�'OS ALT�1 I HILLS Town Clerk . Mayor APPROVEDfi,S TO FORM: Residents Town Attorney / 1053409.3 5