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HomeMy WebLinkAbout03/06/1995 BAKERSFIELD Patricia J. DeMond, Chair Irma Carson Kevin McDermott Staff: Gail E. Waiters AGEN'DA "i~UDGET AND FINANCE COMMITTEE Monday, March 6, 1995 12:15 p.m. City Manager's Conference Room Second Floor - City Hall, Suite 201 1501 Truxtun Avenue Bakersfield, CA 1. ROLL CALL 2. APPROVAL OF FEBRUARY 6, 1995 MINUTES 3. PRESENTATIONS 4. PUBLIC STATEMENTS 5. DEFERRED BUSINESS A. FIREWORKS ORDINANCE - Descary/Skousen B. ORDINANCE ON SEWER LINE REPAIRS - R. ROjas/Skousen C. AMBULANCE ORDINANCE- Stinson D. ASSESSMENT DISTRICT DISCLOSURE NOTICE - Skousen 1. KEN METTLER INQUIRY E. ORDINANCE 'ON SPREADING FOR ASSESSMENT DISTRICTS - Skousen 6. NEW BUSINESS 7. ADJOURNMENT FILE: COPY NOTICE OF SPECIAL MEETING OF THE BUDGET AND FINANCE COMMITTEE OF THE COUNCIL OF THE CITY OF BAKERSFIELD NOTICE IS HEREBY GIVEN that the Budget and Finance Committee of the City Council will hold a Special Meeting for the purpose of a Committee Meeting on Monday, March 6, 1995, at 12:15 p.m., in the City Manager's Conference Room on the second floor of City Hall, Suite 201, 1501 Truxtun Avenue, Bakersfield, California, to consider: 1. ROLL CALL 2. APPROVAL OF FEBRUARY 6, 1995 MINUTES 3. PRESENTATIONS 4. PUBLIC STATEMENTS 5. DEFERRED BUSINESS A. FIREWORKS ORDINANCE - Descary/Skousen B. ORDINANCE ON SEWER LINE REPAIRS - R. Rojas/Skousen C. AMBULANCE ORDINANCE - Stinson D. ASSESSMENT DISTRICT DISCLOSURE NOTICE - Skousen 1. KEN ME'n'LER INQUIRY E. ORDINANCE ON SPREADING FOR ASSESSMENT DISTRICTS - Skousen 6. NEW BUSINESS 7. ADJOURNMENT G/~I E. Walters, Assistant City Manager GEW:jp FILE COPY BAKERSFIELD Alar{.~Ta&:ly, Cif~ZManagE Patdcia d. DeMond, Chair Staff: Gail E. Waiters Irma Carson Kevin McDermott AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Monday, February 6, 1995 12:15 p.m. City Manager's Conference Room 1. ROLL CALL Call to Order 12:25 p.m. Present: Patdcia J. DeMond, Chair; and Councilmember Irma Carson. Absent: Councilmember Kevin McDermott 2. APPROVAL OF JANUARY 23, 1995 MINUTES Approved as submitted. 3. PRESENTATIONS None 4. PUBLIC STATEMENTS None AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Monday, February 6, 1995 Page -2- 5. DEFERRED BUSINESS A. POLICY ON SEWER LINE REPAIRS Staff presented the Committee with a draft ordinance regarding a policy whereby the City would make available a "discounted service" to residents needing assistance with sewer lateral repairs. The Committee asked staff to return with language which emphasized the discounted service was specific to improvements from the right-of-way to the sewer main, and that the flat fee of $250 is available because of a subsidy from the City. 6. NEW BUSINESS A. DISCUSSION ONLY - CONVENTION CENTER HVAC During the 1994/95 budget process, staff estimated that the replacement of the Convention Center HVAC system would cost approximately $500,000. After a more extensive assessment from an outside contractor, it has been determined that the cost .to replace' the complete system would be between approximately $2.3 million and $2.9 million. Staff indicated that they do not have the expertise to undertake this project and asked for permission to start the RFQ and RFP process to select an outside consultant. An administrative report requesting the RFQ and RFP process will go before the Council on February 22, 1995. The Committee asked staff t© do some additional research and bring back to the Committee all possible options regarding the magnitude and cost of the project. 7. ADJOURNMENT The meeting was adjourned at 1:00 p.m. cc: Honorable Mayor and City Council GEW:jp MEMORANDUM February 26, 1995 TO: BUDGET AND FINANCE COMMITTEE SKOUSEN, City Attorney ~S FROM: JUDY K. BILL DESCARY, Treasurer 6~ ~ ~ SUBJECT: DRAFT ORDINANCE AMENDING CHAPTER 8.44 OF THE BAKERSFIELD MUNICIPAL CODE RELATING TO FIREWORKS. Attached hereto is a proposed ordinance amending Chapter 8.44 of the Bakersfield Municipal Code relating to Fireworks. BACKGROUND: On January 23, 1995, the Budget and Finance Committee considered alternatives to the fifty permit limit currently in the ordinance. It was determined a formula of one permit per 4,000 population, or portion thereof, would be an equitable method to accommodate City growth. Issuance of permits to new applicants from the formula method will be determined by a lottery system. This amendment clarifies that priority between applications made by the same location shall be given to the applicant who held a permit for that location the prior year. The amendment also clarifies that entities holding permits for locations that are subsequently annexed to the City will be issued City permits for the annexed locations which could result in more than one permit per 4,000 population. This may occur because this amendment will provide for one permit per 4,000 population plus one permit for each permit previously issued by Kern County and subsequently annexed to the City. The format of the ordinance is reorganized and includes a revocation and appeal process that is lacking in the current ordinance. WD/meg COUN~5 - 1/ORD-REF/FIREWRKS. ~ F cc: Mike Kelly, Fire Chief Gregory Klimko, Finance Director Robert Tobias, Fire Marshal Dennis Fidler, Building Director THIS MEMORANDUM IS EXEMPT FROM DISCLOSURE AND IS PROTECTED BY THE ATTORNEY-CLIENT AND ATTORNEY WORK-PRODUCT PRIVILEGE DRAFF March 3, 1995 ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 8.44 OF THE BAKERSFIELD MUNICIPAL CODE RELATING TO FIREWORKS. BE IT ORDAINED by the Council of the City of Bakersfield as follows: SECTION 1. Chapter 8.44 of the Bakersfield Municipal Code is hereby amended to read as follows: Chapter 8.44 FIREWORKS Sections: 8.44.010 Definitions. 8.44.020 Permit required. 8.44.030 Application - Issuance - Fee. 8.44.040 Regulations. 8.44.050 Revocation. 8.44.060 Appeal. 8.44.010 Definitions. Whenever used in this chapter, unless a different meaning clearly appears from the context, the words set out in this section shall have the following meanings: A. "Person" means any individual, partnership, corporation or association of any nature whatsoever. 8.44.020 Permit required. It is unlawful for any person to sell or offer for sale or expose for sale within the city any fireworks in violation of this chapter or without having a valid permit therefor in' accordance with the provisions of this chapter. 8.44.030 Application - Issuance - Fee. A. A permit for the sale of safe and sane fireworks may not be issued applicants unless they meet the following qualifications: D AFT March 3, 1995 1. A nonprofit organization or corporation organized and existing primarily for veteran, patriotic, religious, welfare, charitable or civic-betterment purposes, organized and established in the City at least one year prior to the filing of application for permit under this chapter and having a bona fide membership of at least thirty-five members; provided: 2. Retail (for profit) business establishments which have, for a period of at least one year prior to the filing Of an application for permit under this chapter, held a valid business tax certificate issued by the city under Chapter 5.02 of this code; provided, no such permit shall be issued to any such retail business establishment unless such establishment was issued a Permit the previous year. 3. Any entity which held a permit issued by Kern County for a particular location the previous year~ which location was subsequently annexed to the City within the past year, shall be treated as if it had held a permit from the City for purposes of this section. 4. A permit shall not be issued unless the person, applying for the permit has first obtained a permit or license from the State Fire Marshall under Part 2, Division 11 of the Health and Safety Code of the state. B. All recipients of Fireworks permits except those specifically exempted in paragraph C herein, shall be selected by a drawing (by lot) conducted by the City Manager or his/her designee. C. The total number of fireworks permits to be issued shall not exceed one permit per 4,000 population, or portion thereof, in the City of Bakersfield, as set forth in the annual report of the State Department of Finance, but not less than fifty. Provided, however, any person applying for a fireworks permit who had such a permit in 1994 and also in the previous year shall be issued a permit if otherwise qualified without being included in the drawing, notwithstanding the fact that such issuance may increase the number of permits to more than that allowed herein. D. Applications for .Fireworks Permits shall be submitted after March 15th and before May 15th of each year. No applications shall be accepted nor processed by the City after May 15th of each year. E. Applications for Fireworks permits shall be made on forms to be furnished by the city manager or his designee, shall be signed under penalty of perjury by the applicant and shall require March 3, 1995 the following information and documents: 1. The name, address and telephone number of the nOnprofit organization or retail business establishment for~which application is made; 2. The applicant's business tax certificate number if it is a retail business establishment, and the name and address of all owners of such business; 3. The location of the proposed fireworks sales; and 4. The purpose of the nonprofit organization or corporation, its principal and permanent meeting place; the approximate date of its establishment in the city; the total number of its local membership; the names and addresses of its officers. 5. A plot plan drawn to scale, showing the location of the temporary fireworks stand, utilities, location of permanent and temporary structures, curb cuts and/or driveways and identifying the nearest available sanitary facilities, and fire hydrants; 6. A written authorization from the owner of the location or person in lawful possession thereof, if other than the applicant, for the locating 'of the business upon his or her property. 7. Evidence, satisfactory to the city manager or his designee, of (1) general liability insurance providing coverage on an occurrence basis for bodily injury, including death of one or more persons, property damage and personal injury, with limits as required by the city; and (2) workers' compensation, with statutory limits and employers liability insurance with limits as required by the city. All policies required of the applicant hereunder shall be primary insurance as to the city, its mayor, council, officers, agents, employees and volunteers and any insurance or self- insurance maintained by the city, its mayor, council, officers, agents, employees and volunteers shall be considered excess insuranCe, over and above the applicant's insurance and shall not contribute with it. The applicants shall save, hold harmless and indemnify the city, its officer, agents, employees and volunteers from all claims, demands, damages, judgments, costs or expenses in law or equity that may at any time arise from or is any way related to any work performed by applicant, his agents or employees under the terms of any permit issued under this chapter. - 3 - March 3, 1995 8. Cash bond in the sum of one hundred dollars, to be forfeited to the city in the event the permittee fails to remove said stand, equipment and rubbish from the premises upon which the stand is located before twelve noon on July 15 of the year for which said permit is granted. The cash bond shall be returned to the applicant upon full performance of the requirements of this chapter. 9. Approval from the Public Works Department of the City that operation of the Fireworks stand at the proposed location will not present any substantial hazard to vehicular or pedestrian traffic. F. Location of temporary stands may not be changed after an application is filed except as required by the city, or where there is evidence of change in property ownership or management and prior approval or consent has been revoked by the new owners or managers. G. No one organization or business may receive more than one permit for fireworks sales during any one calendar year. I. All permits issued under this chapter shall remain in effect from noon on July 1 to noon on July 5 unless earlier suspended or revoked. J. The applicant shall pay a fee not to exceed the cost of processing any such application and inspecting such business as set forth in Section 3.40.070. K. Permits may be issued with conditions to ensure that the business will be operated in a safe and legal manner, will not disturb the peace and quiet of the neighborhood and will not constitute an undue burden on city resources. 8.44.040 Requlations. A. Those fireworks which are classified as "dangerous fireworks" under Section 12505 of the California Health & Safety Code are prohibited, except that such fireworks as are defined and classified as "safe and sane fireworks" in Section 12529 of the California Health and Safety Code may be displayed, sold and Used pursuant to the provisions of this chapter and not otherwise. B. No permit holder shall shout, make any outcry, blow a horn, ring a bell or use any other sound device including any loudspeaker, radio or amplifYing system where sound of sufficient volume is emitted or produced therefrom capable of being plainly D AFT March 3, 1995 heard upon the streets, alleys,' parks or other public Places. c. Any permit issued pursuant to this chapter shall be non-transferrable, and shall be valid only as to the applicant and location provided on the application for such permit. D. Except as expressly permitted by and in accordance with the provisions of Chapter 12.44 of this code, the sale, offer to sell, advertising or display of merchandise on any street or sidewalk in the city is prohibited. E. All retail sales of safe and sane fireworks shall be permitted only from a temporary fireworks stand and the sale from any other building or structure is prohibited. F. No fireworks stand shall be located within one hundred feet of any gasoline storage or gasoline pump or any garage ~or within thirty feet of any other building, or within six hundred feet of any other fireworks stand. G. Fireworks stands need not comply with the provisions of the building code of the city except that the building official shall have authority to require that stands be constructed in a manner which will reasonably insure the safety of attendants and patrons. H. Fireworks stands shall be located only in a C-1 zoning district or a zoning district less restrictive than C-l, unless located upon property owned and occupied by a church and/or school, which church or school is either a legal or legal nonconforming use of such property, and the fireworks stand is located no less than three hundred feet (300') from the property line of any residence. I. All temporary stands for the display and sale of fireworks shall obtain an electrical permit from the city building department. J. If a toilet is not immediately available during all open or sale hours of the fireworks stand, then an approved chemical one must be provided. K. Each stand in excess of twenty-four feet in length must have at least two exits. Each stand in excess of forty feet in length must have at least three exits. L. Each stand shall be provided with not.less than two 2A 10 BC-type fire extinguishers, underwriter approved, in good working order and easily accessible for use in case of fire. - 5 - March 3, 1995 M. No person'shall light, or cause or permit to be lighted, any fireworks or any other article or material within any such stand, or within fifty feet thereof. N. No smoking shall be allowed in any stand, nor within fifty feet thereof. "No Smoking" signs shall be prominently displayed. O. All weeds and combustible material shall be cleared from the location of the stand, including a distance of at least twenty feet surrounding the stand. P. There shall be at least one adult in attendance during the open or sale hours of the fireworks stand. No minor under the age of eighteen shall be permitted in a stand. Q. All permits must be~posted in a conspicuous place. R. Fireworks shall be sold Only between the hours of twelve noon, July 1st, to twelve noon on July 5th. S. Permittee shall strictly comply with all provisions of the State Fireworks Law (Sections 12500 et seq. of the Health and Safety Code). T. The fireworks stand shall be removed from the temporary location by twelve noon on July 15th, and all accompanying litter shall be cleared from said location on or before said time. U. Night watchman accommodations shall not be closer than twenty-five feet from the fireworks stand. V. No fireworks shall be placed in any fireworks stand until a permit for such'stand has been issued by the city. W. Any person who receives a notice to correct any violation, of these regulations or any other condition of the permit, and who fails to correct such violation within the time prescribed in the notice, may be assessed a fee not exceeding the city's cost of reinspection in accordance with Section 3.70.040 of this Code. 8.44.050 Revocation. Any permit issued pursuant to this chapter shall be immediately revoked by the city manager or his designee whenever he finds: - 6 - 1995 A. That misrepresentations were made on ~the application; or B. That any of the terms or conditions of said permit have been violated, or that the business has been operated in violation of local, state or federal law. 8.44.060 Appeal. A. Should any applicant be dissatisfied with the decision of the city manager or his designee not to grant a permit or to revoke a permit, then said applicant may, no later than ten days after notice of such decision is deposited in the United States mail, addressed to the applicant or permittee at the address provided on the application, make written objection to the city council setting forth the grounds for dissatisfaction, whereupon the council shall hear said objections at a regular meeting no later than three weeks following the filing of the objection with the city clerk. The applicant shall be 'given written notice no less than three days prior to said hearing. The council may, upon said hearing, sustain, suspend or overrule the decision of the city manager or his designee, which decision shall be final and conclusive. B. Pending the hearing before the council, the decision of the city manager or his designee shall remain in full force and effect and any reversal thereof by the city council shall not be retroactive but shall take effect as of the date of the council's decision. SECTION 2. This Ordinance shall be posted in accordance with provisions of the Bakersfield Municipal Code and shall become effective thirty (30) days from and after the date of its passage. o0o - 7 - .l I HEREBY CERTIFY that the foregoing Ordinance was passed and adopted by the Council of the City of Bakersfield at a regular meeting thereof held on , by the following vote: CITY CLERK and Ex Officio Clerk of the Council of the City of Bakersfield APPROVED BOB PRICE MAYOR of the City of Bakersfield APPROVED as to form: JUDY K. SKOUSEN CITY ATTORNEY By: I~URA C. MARINO Assistant City Attorney JKS/meg ORD 95-1\FIREWRK4.ALT March 3, 1995 - 8 - MEMORANDUM March 2, 1995 TO: BUDGET AND FINANCE COMMITTEE FROM: JUDY K. SKOUSEN, City Attorney . ~ ~ ROBERT M. SHERFY, Chief Assistant City Attorney ~' SUBJECT: DRAFT AMENDMENTS TO CHAPTER 14.12 RELATING TO SEWERS Attached hereto are proposed amendments to Chapter 14.12 of the Bakersfield Municipal Code relating to Sewers. 14.12.195 Maintenance of house connection sewer. BACKGROUND: This proposed section has been added in order to clarify all property owners' responsibility for maintenance of house connection sewers (sewer laterals). This ordinance does provide, however, that at the request of the property owner, the City will repair that portion of the house connection sewer (lateral) within its right of way upon payment of a fee which shall be adjusted annually. The City will make similar repairs for County residents using the City sewer for a fee determined on a time and materials basis. The term "house connection" sewer rather than "sewer lateral" is used throughout the proposed section in order to be consistent with definitions already used in the Municipal Code. 14.12.160 Permit for sewer connection. BACKGROUND: The words "by the city's work force but" were deleted from subsection C. of section 14.12.160 because private contractors are allowed to make the referenced sewer attachment. This provision is therefore being modified to reflect current practice and is simply a "clean-up" item. Subsection C. follows: C. Direct attachment of a sewer six inches or smaller in diameter to a city sewer will be made ~-- ~ ~"' ...... v~ ~v~ .... w~"~ ly ft ti p it ~ ..... on a er the connec on erm and wastewater discharge permit, if required, are obtained and all required fees are paid by the applicant. THIS MEMORANDUM IS EXEMPT FROM DISCLOSURE AND IS PROTECTED BY THE ATTORNEY-CLIENT AND ATTORNEY WORK PRODUCT PRIVILEGES. Memo to Budget and Finance Committee March 2, 1995 Page Two cc: Raul Rojas, Public Works Director Gregory Klimko, Finance Director Joe Lozano, Equipment Superintendent Mark Leal, Street Maintenance Superintendent Joe Turner, Wastewater Treatment Superintendent RMS/meg/rb COUNC~95-1/ORD-REF/SEWERS.~F ORDINANCE NO. AN ORDINANCE A~ENDING SUBSECTION C. OF SECTION 14.12.160 OF THE BAKERS- FIELD MUNICIPAL CODE AND ADDING SECTION 11,12.195 TO THE BAKERSFIELD MUNICIPAL CODE RELATING TO SEWERS. BE IT ORDAINED by the Council of the'City of Bakersfield as follows: SECTION 1. Subsection C. of section 14.12.160 of the Bakersfield Municipal Code is hereby amended to read as follows: 14.12.160 Permit for sewer connection. C. Direct attachment of a sewer' six inches or smaller in diameter to a city sewer will be made only after the. connection permit and wastewater discharge permit, if required, are obtained and all required fees are paid by the applicant. SECTION 2. Section 14.12.195 is hereby added to the Bakersfield Municipal Code to read as follows: 14.12.195 Maintenance of house connection sewer. Ail property owners shall maintain the house connection sewer from all points on their property to the public sewer. It is the responsibility of all property owners to repair any blockage of or damage to the' house connection sewer. At the request of a property owner within the incorporated area, the City will repair that portion of the house connection sewer between the improved City right of way and the public sewer for a fee of $250.00. Said fee shall be increased annually to .reflect the most recently. available Los Angeles-Anaheim-Riverside consumer price index. At the request of a property owner in the unincorporated area, the City will repair that portion of the house connection sewer between the improved City right of way and the public sewer for a fee to be determined on a time and materials basis. SECTION 3. This Ordinance shall be posted in accordance with the Bakersfield Municipal Code provisions and shall become effective thirty (30) days from and after the date of its passage. o0o I HEREBY CERTIFY that the foregoing Ordinance was passed and adopted by the Council of the City of Bakersfield at a regular meeting thereof held on , by the following vote: CITY CLERK and Ex Officio Clerk of the Council of the City of Bakersfield APPROVED BOB PRICE MAYOR of the City of Bakersfield APPROVED as to form: JUDY K. SKOUSEN City Attorney By: ROBERT M. SHERFY Chief Assistant City Attorney City of Bakersfield RMS/meg Meg/ORD 95-1/SEWERS.CON March 2, 1995 - 2 - BAKERSFIELD ASSOCIATION OF REALTORS®, Inc. 4800 STOCKDALE HIGHWAY, SUITE 100 REALTOR'The Voice for Real Estate"' in Bakersfield 'POST OFFICE BOX 9338 BAKERSFIELD, CA 93389-9338 TELEPHONE (805)638-2300 FAX (80,5)635-2317 March 1, 1995 Members, Budget & Finance Committee CITY OF BAKERSFIELD 1501 Truxtun Avenue Bakersfield, California 93301 Ladies and Gentleman: conCerns have been raised by our Local Government Relations committee regarding special assessments on individual homes, specificly their effect on the resale of existing homes. The Association supports the full disclosure of special assessment costs, to avoid an unexpected and serious financial impact on home buyers and their property values. Accordingly, we would support requiring deed restrictions for properties in assessment districts, mandating full disclosure of the costs of these assessments. Any communication on this subject may be directed to Brian Todd, Governmental Relations representative. Thank you. Very truly yours, GLENDAANSON President GA/bhs cc: City Council Members Mayor Price MEMORANDUM February 24, 1995 TO: BUDGET AND FINANCE COMMITTEE FROM: JUDY K. SKOUSEN, CITY ATTORNEY ~-~ ROBERT M. SHERFY, CHIEF ASSISTANT CITY ATTORNEY SUBJECT: NOTICE REQUIREMENTS FOR ASSESSMENT DISTRICTS Attached are two proposed notices. The first which mentions district 94-2 is appropriate to be used in assessment districts where the benefit spread and the cost spread have a direct relationship. This notice simply advised prospective purchasers that the property they are considering will have assessments charged to them with their tax bill. This notice will require (as a part of both Assessment Districts 94-2 and 94-3) that Castle & Cooke, as sellers of the property, as well as subsequent sellers, be required to make full disclosure to.buyers of parcels that their properties are subject to an assessment. The second notice attached is proposed to be used in Assessment District 94-3 where there is not the direct relationship between benefit and cost. For that reason the notice will need to be very specific that not all properties benefitted by the public improvements paid for by the assessment district will have assess- ments, and that because the assessments are not spread to all benefitted lots as is the normal case, the assessments to the properties that are assessed are higher. It is felt that the notice needs to be so specific to preclude later lawsuits against the City from property owners when they discover their property is subject to assessments to pay for improvements from which their neighbors benefit but for which their neighbor did not pay into the assessment district. (Their neighbor may have paid a higher purchase price for property not in the assessment district but that did not reduce the amount the owner included in the district has to pay.) The City Attorney's office has requested, and bond counsel has prepared, the attached notices which set forth the aforementioned items. Castle & Cooke will be required to record the notice which will act as a deed restriction and a covenant running with the land obligating future sellers to make the same disclosure to future buyers. Additionally, language in the Acquisition Agreements (for both Assessment Districts 94-2 and 94-3) will be included which sets forth the obligation of Castle & Cooke to pass on the information about the assessment to those who purchase property from it. JKS/RMS/meg Attachments ~S:COUNCIL&CO~95- l/B~GF~2.COM EXHIBIT "C" RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: NOTICE OF SPECIAL 'ASSESSMENT DISTRICT LIEN (Addendum to the Contract for Purchase and Sale and Receipt for Deposit) Tract Lot or Lots The undersigned Buyer acknowledges that the above-mentioned Lot of Lots .of Tract (the "Property") being purchased by Buyer from Castle & Cooke Homes, Inc., a California corporation, is/are located within and is/are subject to one or more special assessment liens, and,. possibly, other special district obligations, including, but not limited to, the following: Assessment District No. 94-2 (Gosford/White). The City of Bakersfield (the "City"), upon the request of the developer, has formed this assessment district and levied special assessment liens upon the Property for the purpose of financing certain public improvements and facilities such as roadways, streetscapes, parks, etc. The assessment liens for the Tract, which, includes the prOperty, are in the principal amount of $ per lot and, unless discharged by full cash payment, will result in an annual installment on the property tax bill of approximately $ per lot per year. Buyer acknowledges that the Property is within Assessment District No. 94-2 and possibly other special districts, and that, in addition to ordinary property taxes, the Property is subject to the special assessment liens levied upon the individual lots in said Assessment District No. 94-2, and that an annual installment on account of the unpaid special tax bill issued by the County of Kern for each separate lot of the Property. The actual amount of each annual installment on account of each unpaid special installment lien will vary depending upon, among other.things, the interest rates and the term of the bonds sold to finance the public improvements. The principal amount per lot listed above has been fixed, but the amount listed above for the annual installment should be considered an estimate only. Buyer further acknowledges that, while each Lot of the Property is subject to a special assessment lien, other adjacent lots, whether or not included in the Tract, may not be subject to a special assessment line. This Notice and the disclosure provided herein shall be provided to each successor of Buyer, and the obligation to provide this Notice to each successor of Buyer shall constitute a covenant running with the land of each lot of the Property until such time as the special assessment lien on such lot of the Property has been fully paid and discharged. The Seller and each successive seller shall file an executed copy of this' Notice with the Finance Director of the City within five (5) days of close of escrow for the transfer of title of 'any lot of the Property. BUYER SELLER CASTLE & COOKE HOMES, INC., a California corporation DATED: By: Its: By: Its: (Acknowledgments) JKS:laa JKS/cas&eook.nsa 2 MEMORANDUM March 2, 1995 TO: BUDGET AND FINANCE COMMITTEE FROM: JUDY K. SKOUSEN, CITY ATTORNEY SUBJECT: METTLER LETTER OF 1/25/95 ALLEGING ASSESSMENT DISTRICT ABUSE The following comments are responses to statements made by Mr. Mettler in his letter to the City Council dated January 25, 1995. Response to Statement Regarding: Goals and Policies: It is within the discretion of the City Council to determine appropriate goals and policies regarding assessment districts. Response to Statement Reqardinq: Disclosure: It is true that there are none of the disclosure requirements for special assessment districts that are required in Mello Roos Districts. The forms of notice submitted to you by Mr. Mettler are those required by State law in Mello Roos Districts. The City does have authority to require that same or similar notice in assessment districts. Whether to do so is a policy decision for the City Council. It is also true that unless the information regarding assessment districts is provided to a prospective buyer, that information can be difficult to obtain. Usually it can be found in a preliminary title report if the buyer is sufficiently sophisticated to read and understand the references in the report. Sometimes escrow is commenced on the sale of lots and the preliminary title report issued prior to the assessment district map being recorded. In that event, it would not show up on the report, and the buyer would have no way of knowing about the assessment district unless the realtor or seller told the buyer. Response to Statement Reqardinq: Distorts the Market: It is also true that the assessment district may be a hidden cost which gives some advantage to sellers of lots subject to an assessment district because of the lower purchase price unless the seller discloses the assessment. THIS MEMORANDUM IS EXEMPT FROM DISCLOSURE AND IS PROTECTED BY THE ATTORNEY-CLIENT AND ATTORNEY WORK PRODUCT PRIVILEGES. Memo to Budget and Finance Committee March 2, 1995 Page Two It is also true that the current City policy requires improvements costs of at least One Million Dollars before the developer would be eligible to finance those improvements by means of an assessment district. This would appear to give an advantage to larger developers over small developers. Response to Statement Reqardinq: Allocation Disparities: State law requires that assessments be spread to benefitted lots in the same proportion that the lots benefit from the improvements. This results, on occasion, in different lots having differing assessments. Response to Statement Regarding: Tax Disparities: It is the duty of the assessor to take into consideration the sales price of a property to determine the property tax and the transfer tax. Thus, it is true that a property without an assessment having a higher sales price would pay more in property tax and transfer tax. Response to Statement Reqardinq: Public Backlash: It is a question of whether allowing required improvements to be financed through assessment districts helps or hurts prospective buyers. If the developer is not allowed to finance the improvements, a buyer may be required to pay more or make a greater down payment in order for the developer to pay his initial costs to build the improvements. Thus, it can be said that assessment districts assist not only the developer, but also the purchaser. JKS:rb JKS\METTLER RB-JKS\METTLER.MEM -~R--03--95 FRI 1 1 :49 AM METCO HOMES OF A[~IZONA 602 322 6340 P. KEN METTLF, R 10800 Tivoli Court Bak_orsfield, CA 93311-2231 ('805) 664-0400 FAX 664-0498 March 3, 1995 VIAFAX Ms judy Skousen ; .... City Attorney City of Bakersfield 326-3721 · 325-9162 FAX NOTICE REQUIREMENTS FOR ASSESSMENT DISTRICTS It appears that the prototype "Notice of Special Assessment District Lien", prepared for Assessment Districts Nos. 94-2 and 94-3, covers all the salient points of disclosure for these districts and future districts. However, a problem remains on existing districts, especially 93-2 (Stine-Harris). I would suggest that a recorded instrument be recorded that extends beyond the blanket "Notice of Assessment- Treasurers List of Unpaid Assessments", so that the title companies will pick up the exact amount of principal per lot and a clause requiring sellers to disclose. Your efforts are much appreciated. ~ IIAR--O~--95 FRI 1 1 :47 AM METCO HOMES OF ARIZONA 602 ME LER 1~00 T~oli ~un Bakem~ld, ~ 93311-2~1 (805) ~&~00 F~ ~0498 M~ch 3, 1995 VIA FAX Honorable Mayor and Councilmembers City of Bakersfield 326-3721 325-9162 FAX ORDINANCE AUTHORIZING THE REALLOCATION OF SPECIAL ASSESSMENTS FROM BENEFITTED PARCELS TO OTHER PARCELS - CASTLE & COOKE This proposed ordinance only adds to the current problem with assessment districts and sets a dangerous precedent. This ordinance is not good for the City of Bakersfield, its citizens and taxpayers. PROBLEMS: Legal vs City Policy Just because this proposed ordinance is technically legal does not mean it should be City policy. As pointed out in my 1/25/95 letter, the City needs to define a specific policy regarding the use of special districts. Charter City vs General Law The spirit and intent of being a charter city instead of a general · .law city is to foster local control, not to cater to a select special interest. If Bakersfield were a general law city then the contemplated ordinance would be illegal. Market Disparity The City must be careful not to interfere with normal free market by creating distortions to supply and thus demand. The question to be asked, "Is would this improvement happen any way with out the government's involvement?". Further, the use of this financing method allows Castle & Cooke to use off balance sheet financing and to encumber the securing property for more than the current City's policy of limiting the amount of assessment financing to a prescribed fraction of the market value of the property being assessed. Precedent This ordinance sets a precedent that would need to be allowed to others and not just Castle & Cooke. Tax Disparities As pointed out in my 1/25/95 letter, the use of these districts results in the subject properties paying less in property taxes and less in transfer taxes. Ironically, this results in the City receiving less tax revenue for the general fund from the properties that the City helps place the assessment districts on. The City does receive administration fees from the assessment districts via the taxpayers' payment. KlaN METTLER MAR--03--95 FRI 1 1 :48 AM METCO HOMES OF ARIZONA 602 322 6340' P. 02 KEN METTLER 10800 Tivoli Court Bakersfield, CA 93311-2281 (805) 664-0400 FAX 664-0498 March 31 I995 RECEIVED VIA FAX t~&~ 'd .... Ms Judy Skousen Cl'~/AT~0~!?¥'5 ur, City Attorney City of Bakersfield 326-3721 325-9162 FAX MErITLER LETrER OF 1/25/95 ALLEGING ASSESSMENT 'DISTRICT ABUSE Once again your prompt attention is appreciated. I would like to point out that under Allocation Disparities, that Assessment District No. 93-2 (Stine-Harris) seems to go beyond the normal allocation formula. It appears that the allocations were convoluted in such a way to facilitate some bulk sales and the ulimate marketing of the homes contained in those tracts. The disparity between like sized lots in contiguous tracts vary by 350%. MAR--0~--95 FRI 11 :49 AM METCO HOMES OF ARIZONA 602 522 6~40 P.O~ KEN METTLER 10800 Tivoli Court Bakersfield, CA' 93311-2281 (805) 664-0400 FAX 664-0498 March 3, 1995 Ms Judy Skousen C,i?y AFi'O,9,~!Ey,$ OF?r?:: City Attorney ~ of B~ersfield 326-3721 325-9162 F~ NOTICE REQUIREMENTS FOR ASSESSMENT DISTRICTS It appears that the prototype "Notice of Special Assessment District Lien", prepared for Assessment Districts Nos. 94-2 and 94-3, covers all the salient points of disclosure for these districts and future districts. However, a problem remains on existing districts, especially 93-2 (Stine-Harris). I would suggest that a recorded instrument be recorded that extends beyond the blanket "Notice of Assessment- Treasurers List of Unpaid Assessments", so that the title companies will pick up the exact amount of principal per lot and a clause requiring sellers to disclose. Your efforts are much appreciated. Tax Disparities Properties encumbered with assessments can pay less in property taxes in relation to other properties of the same true value inside and outside the assessment district. Also, the transfer tax is understated on properties with the assessments since the tax is based upon the sales price which is lower than the true value of the property. Public Backlash The public may vent their anger over the abuse of the intent of these bond issues such that future worthy public benefit improvements that would not otherwise be built will not be supported. RECOMMENDATIONS: Limit use of assessment districts to only truly "public benefit" use. Do not extend the use to subsidizing *.he construction of the normal streets, curbs, sidewalks, UndergrOund utilities, and etc. that a land developer installs. COB Finance Dept. must completely update their systems in order to comply with SB 1464. Eliminate any possible disclosure loopholes as outlined above, including a recorded instrument showing the principal payoff amount of the bond assessment on each home prior to the sale any home. Thoroughly consider any distortions to the market place prior to approving any special assessment districts. Educate the title companies, 'real estate agents, appraisers, builders, developers, existing home owners, and consumers that the COB has assessment district information ~'eadily available via the NOTICE OF SPECIAL TAX including the principal payoff amount. Evaluate any potential liability that the COB has, since all legal requirements refer to the lead agency ie. the COB, as the source of disclosure information. Also, reference should be made to the many lawsuits involving this topic, especially those brought by homeowners in Los Angeles and San Diego. In summary~ please defer your vote on Assessment District No. 94-2 and any other pending assessment districts until a thorough and deliberate study is completed of all the ramifications. This whole subject should be REFERRED TO COMMITTEE. K~EN METTLER 327-5000 enc c Alan Tandy, Mayor, Councilmembers F:~APPS\WP60\VR~VIAR~SESSME.LTR The loopholes that exist are as follows: (1) COB is not providing the required "NOTICE OF SPECIAL TAX", which allows developer/builders and subsequent individual sellers to avoid their disclosure requirements since, "..the notices are made available by the local agency." (2) The prescribed NOTICE OF SPECIAL TAX, also is lacking in that a total principal payoff amount is not disclosed, only a maximum yearly payment amount. (3) A Department of Real Estate White Report is not required to sell lots in bulk to a builder, when the lots are located within a city limits. Therefore, this potential disclosure safeguard is not required by state law within the COB. (4) Real estate agents can plead ignorance since SB 1464 states, "...nothing ...imposes a duty to discover a special tax or district not actually known to the agents." (5) Apparently, certain sellers of real property may be exempt from disclosing the Notice of Special Tax to prospective buyers, if they are exempt from providing a "Real Estate Disclosure Statement"(TDS). New home sellers, are exempt from providing a TDS. Distorts the Market The new home buyer lacks the information to make an informed decision on the most expensive asset they can acquire. In essence, a home selling for $90,000. may actually be more expensive than one selling for $98000. because the former is subject to $8,600. of principal amount of improvement assessments. Existing home owners property values can be decreased when appraisers fail to make the valuation adjustments properly for all the comparable sales that may be subject to assessments. In other words, a $90,000 new home with 1200 square feet may set the basis for valuation for an existing home of 1200 square feet, however, the existing home may actually be worth more. since it is not subjected to $8600. of improvement assessments. The home subject tO an undisclosed assessment will forever have a marketing advantage. For example, if two neighbors have the exact same home and one pays off the assessment of $8600. and the other does not, then the one who paid off the assessment must forever sell his home for $8600. more than his neighbor. Lender security is impaired as loans are made upon the lower sales price of the homes encumbered by the assessments since the proper adjustments are not being made to the valuation. Further, the borrowers are qualified upon a lower payment schedule since the increased tax burden was not taken into consideration. The buyers are under budgeting their housing expense since their payments go up after one year due to the unforeseen increased normal property tax bill and an increased supplemental tax bill. The use of these assessment districts can result in creating a monopoly for the large developer verses the smaller developer. The expense in forming a special assessment district dictates that only large tracts of land can use this financing method. The small developer must pay for his infrastructure costs and reflect those costs in the sales price of the homes. The large developer can advertise and sell homes at a seemingly lower price. Allocation Disparities It appears that tremendous disparities even within asSessment districts is possible. For example, Assessment District No. 93-2 (see enclosed) has lots the same size with assessments varying from $8618 to $2340 per home. This creates advertising advantages for some builders over other builders and generally confuses the consumers. F:~APPS\WP60\VR\MARLa, SSESSME.LTR January 25, 1995 7:00 pm Honorable Mayor and Councilmembers ~ ~'~ Cit3 of B~ersfield ASSESSMENT DISTRICT ABUSES The expanded use of special assessment districts has created a substantial problem for the home buying consumer and the existing home owner within the greater Bakersfield area. The original intent of the bond acts was to provide a mechanism for financing public benefit improvements when no other financing/method was available and involved many different land owners for projects such as sewer lift stations and trunk lines. PROBLEMS: Goals and Policies The City of Bakersfield (COB) must set policy as to the scope and breadth that special assessment districts can be used for. Senate Bill No. 1464 (see enclosed) SEC. 1.5. Section 53312.7 (a) states that "On or and after January 1, 1994, a local agency may initiate proceedings to establish a district ...only if it has first considered and adopted local goals and policies .... The policies shall include at least the following: , (1) A statement of the priority that various kinds of public facilities shall have .... (3) A statement concerning steps to be taken to ensure that prospective property purchasers are fully informed about their taxpaying obligations imposed ..... (4) A statement concerning criteria for evaluating the equity of tax allocation formulas, and concerning desirable and maximum amounts of Special tax to be levied against any parcel..." Disclosure SB 1464 SEC. 7. Section 53340.2 (a) (b) (c) states," .... the seller of any real property .... Shall make a good faith effort to obtain a disclosUre notice...from each local agency .... as long as the notices are made available by the local agency." Further, "The designated office .... shall establish procedures to promptly respond to inquires concerning current and future estimated tax liability ...... For purposed of enabling sellers of real property subject to the levy of special taxes .... the designated office .... shall furnish a Notice of Special Tax to any individual requesting the notice .... within five working days of receiving a request ..... The notice shall contain the heading "NOTICE OF SPECIAL TAX" ...... "(see enclosed). The City of Bakersfield is not providing the required information in an understandable or timely manner. In fact, many home buyers are only discovering the magnitude of the assessments up to one year after purchasing the property when they receive the property tax bill and even then there is no clear disclosure of the total amount of the obligation, only a yearly payment. FAAPPS\W P60\VR~IAR~a, SSESSME.LTR ASSESSMENT DISTRICT NO. 93-2 Stine-Harris ("The Seasons") Fund #20183 Developer: St. Clair Description Builder Tract Name Annual Assessment* Payoffper Home* per Home Tract 5652 St. Clair Winter Ridge $1,158/yr $10,811 Tract 5652 Carter Seasons $1,15 i/yr ' ' $10,756 '~ Tract 5701 K & B California Dawn $254/yr $2,371 Par 2 PM 9918 Probuilt Autumn Crest $126/yr $1,177 Tra. ct 5670 l&2 Par 1 PM 9918 Probuilt Autumn Crest $159/yr $1,487 Tract 5670 3&4 Tract 5688-E Carter Seasons $250/yr $2,340 Tract 5688-A B&D (Stine) Summerview $922/yr $8,618 ASSESSMENT DISTRICT No. 94-2 ("The Arbors") Fund # Developer: Castle & Cook Tract 5464 ph 1 K & B Arbors $353/yr $3,300 ASSESSMENT DISTRICT No. 94-3 ("Silver Creek") Fund # Developer: Castle & Cook ASSESSMENT DISTRICT No. 91-1 reconfigured ("Seven Oaks") Fund # Developer: Castle & Cook * Estimated annual assessments and principal payoff. Interest rate and term unknown. Exact information unavailable from City of Bakersfield. F:La. PPS\WP60\V R\MA RLa~SS ESSME.932 CtlAPTER 772 324o 1992 REG. SESSION SEC. 7 NOTICE OF SPECIAL TAX COMMUNFfY FA CILITIES DISTRICT NO. COUNTY OF , CA LIFORNIA TO: THE PROSPECTIVE PURCHASER OF TIlE REAL PROPERTY KNOWN AS: THIS IS A NOTIFICATION TO YOU PRIOR TO YOUR PURCItASING THIS PROPERTY. ThLs property is subject to a special tax, which is in addition to the regular property taxes and any other charges and benefit assessments on the parcel. This special tax may not be imp,,sed on all parcels within the ciO' or county where the property is located. If you fail to pay this tax when due each year, the propero' ma), be foreclosed upon and sold. The tax is nsed to provide public facilities or services that are likely to particularly benefit the property. YOU StlOULD TAKE TtlIS TAX AND TtlE BENEFITS FRO~I TIIE PUBLIC FACILITIES AND SERVICES FOR WtlICtt IT PA YS INTO ACCOUNT IN DECIDING WHETHER TO Blft' TtlIS PROPERTY. (2) The maximum special tax which may be levied against this parcel to pay for public facilities is $ during the tax year. This amount will increase by ~ percent per year after that (if applicable). The special tax will be levied each year until all of the authorized facilities are built and all special tax bonds are repaid, but in any case not after the tax year. An additional special tax' ,vill be used to pay for ongoing services, if applicable. The maximum amount of this tax is dollars ($ ) during the tax' year. This amount may incre~tse by , if applicable, and may be levied until the tax ye~u' (or forever, as applicable). (3) The authorized facilities ~vbich are being paid for by the special taxes, and by the money received from the sale of bonds ~vhich are being repaid by the special taxes, are: These facilities may not yet have aH been constructed or acquired and it is possibi~ that some may never be constructed or acquired. In addition, the special taxes' may be used to pay for costs of the following services: YOU I~IAY OBTAIN A COPY OF TtIE RESOLUTION OF FORI~IATION WHICtI AUTfIORIZED CREATION OF THE COI~IfiIUNITY FACILITIES DISTRICT, AND IVtIICII SPECIFIES MORE PRECISELY tIOIV THE SPECIAL TAX IS APPORTIONED AND HOW THE PROCEEDS OF TtIE TAX WILL BE USED, FROI~I TIlE (name of jurisch'ction) BY CALLING (telephone number). TtIERE ~¥1AY BE A CtIARGE FOR TtIIS DOCU~IENT NOT TO F,~'CEED TtlE ESTk~IATED REASONABLE COST OF PRO VIDING TIlE DOCUiVIENT. I (WE) ACKNOWLEDGE THAT I (WE) HAVE RECEIVED A COPY OF THIS NOTICE. I (WE) UNDERSTAND rFtIAT I (WE) MAY TERMINATE THE CONTRACT TO PURCItASE OR DEPOSIT RECEIPT AFTER RECEIVING TItIS NOTICE FROM TIlE OWNER OR AGENT SEE'LING TIIE PROPERTY. THE CONTRACT MAY BE TERMINATED WITHIN THREE DAYS IF THE NOTICE WAS RECEIVED IN PEP~SON OR WITHIN FIVE DAYS AFTER IT WAS DEPOSITED lN TIlE MAIL BY' GIVING Italics indicate changes or additions. *" * indicate omissions.' 1992 REG. sEssION 3241 CHAPTER 772 - SEC. 7.5 " WRITTEN NOTICE OF THAT TERMINATION TO THE OWNER OR AGENT SELLING THE PROPERTY. DATE:. sec. 7.5. Section 53341.5 of the Government Code is amended to read: {} 53341.5. fa) If a lot, parcel, or unit of' a subdivision is subject to a special tax levied pursuant to this chapter * * * , the subdivider, his or her agent, or representative, shall not sell, or lease for a term exceeding five years, or' permit a prospective purchaser or lessor to sign a contract of purchase, or a deposit receipt . or any substantially equivalent document in the event o£ a lease with respect to the lot, parcel, or unit, or cause it to be sold or leased for a term exceeding five years, until the prospective purchaser or lessee of the lot, parcel, or unit has been furnished with and has signed a written notice as provided in 'this section. The notice shall contain the heading "NOTICE OF SPECIAL TAX" in type no smaller than 8-point type, and shall be itt substantially the follm~ing form, although the form may be modified as needed to clearly and accurately describe the tax structure and other characteristics of districts created before January I, 1993: NOTICE OF SPECL4L TAX COMMUNITY E4 CILITIES DISTRICT NO. COU~FY OF , CA LIFORNIA TO: TtiE PROSPECTIVE PURCHASER OF THE REAL PROPERTY KNOWN AS: THIS IS A NOTIFICATION TO YOU PRIOR TO YOUR ENTERING INTO A CONTRACT TO PURCHASE THIS PROPERTY. THE SELLER IS REQUIRED TO GIVE YOU THIS NOTICE AND TO OBTAIN A COPY SIGNED BY YOU TO INDICATE THAT YOU HAVE RECEIVED AND READ A COPY OF THIS NOTICE. (1) This properO' is subject to a special tax, which is in addition to the regular property taxes and any other charges, fees, special taxes, and benefit assessments on the parcel. It is imposed on this properO' because it is a new development, and may not be imposed generally upon properO' outside of this new development. If you fail to pay this tax when due each year, the property may be foreclosed upon and sold. The tax is used to provide public facilities or services that are likely to particularly benefit the property. YOU SHOULD TAKE THIS TAX AND TIIE BENEFITS FROI~I 'FILE FACILITIES AND SERVICES FOR WHICH IT PAYS INTO ACCOUNT IN DECIDING WtIETIIER TO BUY Tills PROPERTY. (2) The maximum special' tax which may be levied against this parcel to pay for public facilities is $ during the -~ tax )'ear. This amount ~ill increase by ~ percent per year after that (if applicable). The special ta~ will be levied each year until all of the authorized facilities are built and all special tax bonds are repaid, but in any case not after the tax year. An additional special tax' will be used to pay for ongoing service costs, if applicable. The maximum amount of this tax ~ Italics indicate changes or additions. * * * indicate omissions. dolla~ ($ ) during ~e. -~, ~ ye~. ~is amount may incre~e by , if applicable, and ~at part may be le~ed until the .. ~ ye~ (or forever, as apph'~ble). (3) The authorized facilities which being p~d for by bon~ which are being repaid bF ~e speciM t~es, are: ~e faciliaes maF not yet have aH been co~ffuct~ or acquired and it is possible that some may never be co~ucted or acquired, la addition, the special t~es may be used to pay for cos~ oY ~e following service: YOU ~IAY OBTAIN A COPY OF ~IE RESOL~ON OF FO~ATION ~l~I A~tlORI~D CREA~ON OF THE COM~~ FACIL~IES DIS~I~ AND WIIICtl SPECI~ES ~IORE PRE.SELf F10W ~E SPE~AL TAX IS APPORTIONED A~ fIOW TIIE PROCEEDS OF TIlE TAX t~LL BE USED, b~O&l TIlE (name of jurisdic~on) BY CALLING . (telephone number). ~IERE ~I.4Y BE A CtlARGE FOR Tills DOC~IE~ NOT TO E.~CEED TIlE ~E.4SONABLE COST OF PROVIDING ]TIE I (WE) PLEDGE ~IAT RE~ED A COPY OF TtlIS NO~CE PRIOR TO E~ERING I~O A CO~~ TO PURCtlASE OR DEPOS~ RECEIPT ~Ttl ~SPE~ TO TIIE ABOVE-RE~RENCED PROPERs. I (WE) ~ERSZ4ND TtlAT I (WE) AIAY ~IINATE ~IE CON~A~ TO PURCHASE OR DEPOS~ RECEIPT WITtIIN THREE DAYS A~ER RECEII~ING TtIIS NO~CE PERSON OR WITIIIN bTVE DAYS A~ER IT WAS DEPOSED IN THE ~IAIL BY GIVING WRIITEN NOTI~ OF TIIAT TERMINA~ON TO ]TIE OWNER, SUBDIVIDER, OR AGENT SELLING TIlE PROPER~ DA TE: (b) ..... ,, Subdivision, as used in subdivisiOn (a), means improved or unimproved land that is divided or proposed to be divided for the purpose of sale, lease, or financing, whether immediate or future, into two or more lots, parcels, or units and includes a condominium project, as defined by Section 1350 o£ the Civil Code, a community apartment project, a stock cooperative, and a limited-equity housing cooperative, as defined in 'Sections 11004, 11003.2, and 11003.4, respectively, of the Business and Professions Code. . (c) The buyer shall have three days after deliveo' in person or tire days alter delivery by deposit in the mail of any notice requked by this section, to terminate his or bev agreement by delivery of written notice of that termination.to the owner, subdivider, or agent. (d) The failure to furnish thc notice to the buyer or lessee, and failure of the buyer or lessee to sign the notice of a special tax, shall not invalidate any grant, conveyance, lease, or encumbrance. (e) Any person or entity who willfully violates the provisions of this section shall be liable to the purchaser of a lot or unit which is subject to the provisions of this section, for actual damages, and in addition thereto, shall be guilty of a public offense punishable by a fine in an amount not to exceed five hundred dollars ($:500). la an action Io enforce such liability or fine, the prevailing party shall be awarded reasonable attorney's fees. SEC. 7.6. Section 53345.8 is added to the Government Code, to read: Italics indicate changes or additions. * * * indicate omissions. Commentary Calculating The Marl(et Value For Land Encu_m_[ pecia! Taxes By: Bill Korek Special taxes will affect the value of any land encumbered by a special tax lien. In this example, we will use residential lots. A residential lot value calculation becomes complicated when lots in a subdivision are encumbered by a special tax or assessment. Special tax and assessments liens are placed on real property by local government to finance infrastructure improvements. The special taxes or assessments are often used to secure the repayment of bonds issued by Mello-Roos'~r 1915/1918 Act Districts. When a special tax or assessments exist, the annual per lot special assessment must be determined in order to estimate its impact on the property value. This amount can usually be found on an ~ property tax bill for the property or by contacting the County Treasurer-Tax Collectors Office. In this example we will use $100 per lot per month or ~1,200 per year. The current mortgage rate must also be determined. For this analysis we will use 7% # per annum. If mortgage rates are at 7% a buyer could qualify and finance an additional $17,]42 of home 15],200 + .07 = $]7,]42) if the special tax or assessment lien was not present on the property. In other words, a home buyer could qualify and finance a home selling for an additional $] 7,]42 in another project that is not encumbered by special assessment bonds. A developer/builder considering the purchase of special tax encumbered lots will compare the selling prices of comparable homes land lots) in ti~e area of tile subject property and make adjustments to reflect the impact of existing assessments and special taxes. For example, if there were three cdmpeting housing projects in the area, tile proiects could be compared by calculating the special tax burden impact on the sales price. For example: :... !.:.:"~ :~' ~'i.:'. ~- · :. . .~ : . . . '~i~.'.· '.:.: :.. Price of S~mdar Adjusied Home ("~*'' :i':!::~c~m~tir~g ProdUct Annual Special Tax Calculation sajes Price $165,000 N one None $165,000 $160,000 $'l,000/yr $1,000 X .07 = $14,285 $174.,285 $150,000 $1,200/yr $1,200 X .07 = $17 142 $167,142 $! 45,000 $1,500/yr $1,500 X .07 = $21,428 $166,428 · Actual payment may be slightly more than 7% due to amortization. In the above example, the home selling for the highest price would be the best buy, based on the assumption that all homes and amenities were similar. Again, based on the assumption that all homes/amenities and lots are similar, the buyer of the lots in our example will use the 8165,000 adjusted home sales price (assuming satisfactory sales absorption}, subtract tile ,~ 1 7,142 (special tax burden) and complete the residual value analysis to determine the value of the lots. KOREK LAND COMPANY, INC. 14352 CHANDLER BOULEVARD * VAN NUYS, CALIFORNIA 91,~01 * 818-905-1450 -, ," In tile above example, we have assumed that the public improvements constructed by the improvement bonds secured by the special taxes or assessments add no additional value, thus we have adjusted values on a 1 to 1 basis. The type of improvements constructed with special tax or assessment bonds is very important and additional adjustments in value may need to be made to the previous calculations if the improvements provided add value to the property. For example, the special tax burden could provide amenities that have value to a home buyer, such as jogging tracks, parks, community recreation centers, schools, etc. When assessments and special taxes finance "public benefit" improvements and special amenities are provided, an arbitrary adjustment to the impact of the special tax burden should be calculated. For instance, having a community park in a subdivision ~ have a value of ~20 per month to a home buyer, while a school may have a value of ~50 per month. In some instances a 100% offset to the special tax or assessment may result. For instance, in a master-planned community in which the' bond proceeds were used to provide schools, parks and trails, the ~a~lded ~alu.e to the real property could be as great as the sPecial tax or assessment burden. Although these adjustments are somewhat arbitrary, the calculations are necessary when attempting to accurately determine a residual value for land. A reversal of the above calculation would be necessary if an available property is not encumbered by special taxes or assessments while competing properties were burdened by these taxes and assessments. Previous commentaries available upon request: A LENDER'S GUIDE TO' MELLO-ROOS AND ASSESSMENT LIENS, By Lewis G. Feldman, Esq. and Kathn/n M. Lyddan, Esq. CERCLA ENVIRONMENTAL LIABILITY FOR LENDERS - A LOOK AT THE NEW EPA RULE, By Dean Stackel MELLO-'ROOS, By Bate&~an Eichler, Hill Richards THE BROKER AS YOUR AGENT AND THE BROKER'S FIDUCIARY RESPONSIBILITIES, By Arthur Mazirow DEALING WITH THE WlLLIAMSON ACT, By David L. Preiss ENVIRONMENTAL IMPACTS, By ElS, Isai Trejo TRANSFER DEVELOPMENT RIGHTS, By Douglas Ring UNDERSTANDING THE REMEDY OF LIS PENDENS, By Fredric W. Kessler LET THE FILER BEWARE THE RISKS OF A LIS PENDENS FILING, By Theresa M. Marchlewski, Esq. ENGINEER'S LIABILITY TO DEVELOPER LIMITED, By Scott Hammel, Esq. DEVELOPMENT AGREEMENTS, By Robert Merritt & Geoffrey Robinson, McCutchen, Doyle, Brown & Enersen LAND ABSORPTION POTENTIAL, By Alfred Gobar FINAL REGULATIONS ISSUED FOR AMERICANS WITH DISABILITIES ACT, By Gregory Karns & Adrienne Kentor LANDLORD HELD LIABLE FOR TENANT'S BURGLARY LOSS, By Stacey Olliff CALIFORNIA'S NEW UNDERGROUND STORAGE TANK CLEAN UP FUND, By Amy W. Brammer SEVENTH CIRCUIT PUTS ~REASONABLE DUCK TEST" TO REST, By Robert Uram & Philip Lowe CONSTRUCTION DEFECT LITIGATION, By Robert O: Smylie, Esq. HOMEOWNER ASSOCIATION CONSTRUCTION DEFECT LITIGATION AGAINST DEVELOPERS, By Richard H. Levin UNDERSTANDING THE RECENT SCHOOL FEE CHANGES, By Stanley W. Lamport FORECLOSURE BIDDING STRATEGIES AND THE RISKS OF A FULL CREDIT BID, By John H. Kuhl and Douglas Snyder SCHOOL FEES: THE ONCE AND FUTURE COMPROMISE, By Kennelh B. Bley CALIFORNIA ENACTS LIS PENDENS REFORM, By Barry P. Jab/on ' A CALL FOR PERSPECTIVE .... CALIFORNIA'S NEXT MOVES ARE TO Tt-tE UPSIDE, By Kenneth W. Agid 'STAYIN' ALIVE': USING DEVELOPMENT AGREEMENTS TO EXTEND EXPIRING ENTITLEMENTS, Ronald I. Silvern~an & Carla K. Ryhal "CAN'T GET NO SATISFACTION?" GETTING REIMBURSEMENT FROM REIMBURSEMENT AGREEMENTS,'By Carla K. Ryhal "FOOLS RUSH IN": SUBDIVISION IMPROVEMENT AGREEMENTS ARE NOT TO BE TAKEN LIGHTLY/, By Carla K. Ryhal PRESERVING ENTITLEMENTS WITH TAX-EXEMPT BOND FINANCING, By Gary P. Downs KOREK LAND COMPANY, INC. 14352 CHANDLER BOULEVARD * VAN NUYS, CALIFORNIA 91401 * 818-905-1450 L 1Bif ....· ega r e CALIFORNIA ASSOCIATION OF REALTORS® Member Legal Services Division Tel {213) 739-8282, Fax (213) 480-7724 September 10, 1993 Mello-Roos District Disclosure Requirements Effective July 1, 1993, sellers of certain real property located within a Mello-Ro. 0s Community Faciliti,2~ district must provide a disclosure notice to prospective buyers of that property. This new requirement is contained in California Civil Code section 1102.6b in the article entitled "Disclosures Upon Transfer of Residential Property." QueStion 1: What is a "Mello-Roos Community Facilities district?" Answer: A "Mello-Roos Community Facilities district" or "Mello-Roos district" is an entity formed by a local government, district, or agency to finance the provision of certain designated public services and capital facilities by levying special taxes. The special taxes are levied against property owners within the area in which the services are to be furnished. (Government Code §§ 53311-53365.7.) Among the services and facilities that may be provided through the formation of a Mello- Roes district are police and fire protection services, ambulance and paramedic services, . parks, elementary and secondary schools, libraries, museums, and cultural facilities. (Government Code § § 53313, 53313.5.) Question 2: What disclosure is required? Answer: The law requires that a seller of real property must discover and disclose to prospective bUyers information regarding the Mello-Roos special tax and district from each local agency which levies a special tax on the property being transferred. The seller must provide this disclosure, a 'Notice of Special Tax," in addition to all other disclosures required by law. (Civil Code § 1102.6b(b).} ·" Mello-Roos District Disclosure Requirements Question 3: What types of real estate transactions are covered by this law? Answer: The law applies to transfers of residential real proper~y improved With 1-4 dwelling units where the transfer is by sale, exchange, installment land contract, lease with an option to purchase, option to purchase, or ground lease coupled with improvements. In addition, the real proper~y being sold must be subject to a continuing lien securing the levy of Mello- Roos special taxes. (Civil Code § 1102.6b(a).) Question 4: Are there any exemptions from this disclosure requirem(~ht? Answer: C, IIJ;~il:~yg~e§.,(~f~nsaotions:ara.exempt from the Mello-Roos disclosure requirement..-If a .seller_.is exemptfrom providing..a Real ...Estate.Transfer Disclosure Statement (TDS) in a transactio, n, then the seller is als0 exempt from providing the Notice of Special:Tax.t°'....i. ":-. prospective' buyers.. (Civil Code § 1102,6b(a).) Question 5: Who is required to make the disclosure? Answer: .The~leller. is~reqUired to ~Provide the Notice.of Special Tax to prospective buyers, 'as long the,notice is.made available by.each local Mello,Roos' agenCy. It is the ~ller's Obligation to make a good faith effort to obtain the NOtice of Special Tax from each local agency levying a Mello-Roos special tax. Th~efines ."good ..faith" as honesty in fact in th,e ._;ondu;t.~f~th~tr..a~..~aj;tio.n.;.~ (Civil C'~e Question 6: How does a seller obtain the Notice of Special Tax? Answer: The~seller'must. request, the Notice.of. Special.Tax from.the office or department of the Ioc01.agen(;y~re~porls. iblal:for preparing .the .current ro,.or spec~a~ taxes~. It.is expecte~l'tl~at, tlli8,duty.wilO.most, often be ~performed. by the escrow holder~. _.The governing board of the v l<;)_c.~,eg~rlGy~i&required,todesignat· 'an office .or. del3'~'~'~it t~ respond to requests for the disclosure.notices and..~informafion regarding _spe..cial tax liabilit~ The designated;office-... must.furnish the Notice of Special Tax within five working days of receiving a request for~ , the.notice and may charge a reasonable fee for this service. (Government Code 53340.2.) ~ ~'~ . Meilo-Roos District Disclosure Requirements Question 7: How and when must the disclosure be given? Answer: The seller should give the disclosure notice or notices to a prospective PUrchaser as soon as practicable. The notice or notices may be delivered to a prospective buyer by mail or in person. ' Question 8: Does a buyer have a right of rescission after receiving a Notice of Special Tax? Answer: Yes. If the Notice of Special Tax is delivered to a buyer after the offer is eXecuted, the buyer has three days after delivery in person or five days after delivery by mail to give written notice of termination of the purchase and sale contract to the seller. (Civil Code § 1102.2.) Question 9: What if a seller does not give the disclosure notice? Answer: If a seller does not provide the disclosure, the transaction will not be invalidated. However, if the seller willfully or negligently fails to provide the disclosure, the seller will be liable for actual damages suffered by the buyer. (Civil Code § 1102.13.) Question 10: Is a seller's agent responsible for providing the Notice of Special Tax or information regarding the Mello-Roos district? Answer: No. The law imposes no obligation on a seller's agent or a buyer's agent to discover that a Mello-Roos district or special tax exists, if that information is not actually known to the agents. However, if the information is known by an agent, it probably is a material fact and should be disclosed as such. The law does provide that if the disclosure has been made to the buyer, neither the seller nor seller's agent is required to provide additional information concerning the special tax and district. The disclosure is deemed to satisfy the responsibility of the seller and the seller's agent to inform the buyer of the special tax and district. (Civil Code § 1102.6b(c).) ~ ~- · Mello-Roos District Disclosure Requirements Que. stion 1 1: Does a subdivider or its agents have a disclosure obligation if the property being transferred is part of a subdivision located within a Mello-Roos district? 'Answer: Yes. A subdi¥ider Flay p. ot sellf or lease, for a term for more than five years, or allow a purchaser to e~:~e~"in~ a'(~0nti;aC~ 'fo'rthe sale or lease of, a parcel or unit of a subdivision subject to a continuing Mello-Roos district special tax lien without first providing a Notice of Special Tax. Th~.~ygt'..~lS~ sign a written acknowledgment of receipt of the , disclos_..ure notice, ~h~ ~iyer ~i'i~ hb~'~th'e three: Or five-day right 'of rescission described in Question 8. (Government Code § 53341.5.) Question 12: ' What if a subdivider does not give the disclosure notice to a prospective buyer or tenant? Answer: If the subdivider does not give the Notice of Special Tax, the transaction will not be invalidated. However, willful violation of this law will subject the subdivider to liability for buyer's actual damages, attorney's fees, and a maximum fine of $500. (Government Code § 53341.5(d)- (e).) Question 13: Where can I obtain additiOnal information? Answer: The fact that a property is located in a Mello-Roos district is shown in the preliminary report for most, but not all, Mello-Roos districts. A title officer can provide information about what Mello-Roos.districts may affect a specific property. This and other legal Q&As and' memoranda are available without charge on CARNET and are distributed automatically to LEaDeR (Legal Edge for Designated REALTORS®) subscribers and local Boards/Associations of REALTORS®. A copy may also be obtained through the Member Legal Hotline. Readers who require specific advice should review the facts with an attorney. C.A.R. members with questions may contact the Member Legal Hotline at (213) 739-8282, Monday through Friday, 10:00 A.M. to 6:00 P.M. or write a letter to: California Association of REALTORS® Member Legal Services Division 525 South Virgil Avenue .. Los Angeles, California 90020 4 CHAPTER 772 (Senate Bill No. 1464) An act to amend Section 10176.5 of the Business and Professions Code, to add Section 1102.6b to the Civil Code, to amend Sections 53313, 53313.5, 53316.2, 53317, 53321, 53326, 53330, 53335, 53340.2, 53341.5, 53346, 53356.1, 53359.5, and 70139 of, to amend and renumber Section 53313.8 of, to add Sections 53312.7, 53330.3, and 53345.8 to, and to repeal Section 53347 of, the Government Code, and to add Part 14.5 (commencing with Section 8840) to Division 10 of, and to repeal Section 8807 of, the Streets and Highways Code, relating to local government. [Approved by Governor September 19, 1992.] LEGISLATIVE COUNSEL'S DIGEST SB 1464, Mello. Local government. Existing law requires certain disclosures to be made upon the transfer of real estate and prescribes the manner and form of the disclosures. This bill would require that, in the case of the transfer of real property subject to a continuing lien securing the levy of special taxes pursuant to the Mello-Roos Community Facilities Act where notice is not required pursuant to another specified provision of law, I,[t~!.!~t:,~hal|.iJnaka.,a. good. fai[!t. _effort tO.~O[if~,.[he. PrOsp~tive/ ~arch~er~o£~th.~lie~,n.~d.'n_[h~. si, me.. manner..an..cl,..tim¢.., a~. pr~avide~..d~$n a,., fliaalosura~.form,,.This provision would become operative on July 1, 1993. Under existing law, the Real Estate Commissioner may, upon receiving a verified written complaint, investigate an alleged violation of specified laws relating to disclosures upon the transfer of residential property by any real estate licensee and may suspend or revoke a licensee's license for willful or repeated violation of those laws. This bill would provide that the above provision is the only remedy for violation of the requirements on the transfer of property subject to the above Mello-Roos Community Facilities Act continuing lien for special taxes. The existing Mello-Roos Community Facilities Act of 1982 authorizes the formation of community facilities districts, and the issuance of bonds and the levying of special taxes thereunder, to finance designated public facilities and services. This bill would provide that ~..d. after~..Ja~u~ary 1,.~:1994, ti~ll, local · . ,,.,9~._~_,:.. ......... · ...... initiate proceedings to estabhsh a district pursuant to the act ~9,ll~i~d.,anfl,~.flOl~l;~:d local gcLa,.l~ a~d specified policies conceding th_~ .u..s¢: pti thc iailCt~The bill would further require'gr~'~ls and policies adopted by"31fiy school district in this regard to include a priority access policy which gives priority'" attendance access to students residing in a community facilities district whose residents have paid special taxes which have financed the construction of school district facilities. The bill would require the degree of priority to reflect the proportion of each school's financing through the community facilities district. Existing law specifies the services that may be financed trough, the establistlment of a community facilities district. This bill would expressly permit the financing of sandstorm protection services by .. the establishment of a community facilities district. lta//es indicate changes or additions. * * * indicate omissions. Existing law permits a community facilities district to pay for work to recon- struct, repair, or replace buildings damaged or destroyed by the October 17, 1989, earthquake or by its aftershoeks within counties designated as disaster areas by the President of the United States and to be financed by a tax levy only if all votes cast on the question are in favor of levying the tax. This bill would also authorize payment to repair ages to real property from any earthquake, as specified,, would include counties or areas designated by the Gover- nor as disaster areas or on which the Governor proclaims for the area the existence of a state of emergency, and would permit payment for work identified in a resolution of intention to establish a district within 7 years of designation of a 6ounty as a disaster area. The bill would permit substitution of the prior written consent of all property owners for a vote in favor of the tax. and any associated bond issue. Existing law permits the legislative bodies of 2 or more local agencies to enter into a joint community facilities agreement or a joint exercise of powers agreement to exercise powers jointly under,the act. This bill would provide that rio local agency which is a party to such an agreement shall have primary responsibility for formation of a district unless that local agency meets certain criteria. However, this bill would permit a community facilities district to finance facilities owned or operated by an entity other than the agency that created the district or services, to be provided by an entity other than the agency that created the district, if a joint community facility agreement or joint exercise of powers agreement has been adopted. Existing law defines "debt" for the purposes of the Mello-Roos Community Facilities Act as any binding obligation to repay a sum of money including specified obligations. This bill would revise that definition to mean any binding obligation to pay or repay a sum of money, including the specified obligations and long-term contracts. Existing law requires that the resolution of intention to establish a community facilities district, among other things, state the type or types of facilities and'services proposed to be financed and that a special tax sufficient to pay for all the facilities and services will be levied annually. This bill would instead require that those proposed facilities and services be described, as specified. The bill would also require additional information to be specified in the resolution of any special tax levied to pay for public facilities which is levied against any parcel used for private residential purposes. This bill would provide that the legislative body may .sell bonds for these facilities and services only if it determines prior to the sale of the bonds that the value of the real property that would be subject to the tax to pay debt service on the bonds exceeds by at least 3 times the principal amount of the bonds to be sold and the principal amount of all other outstanding bonds that are secured by a special tax levied under community facilities district law, as specified, unless the legislative body selling the bonds determines by a 4/s vote of all members that the proposed bond issue does not present an unusual risk of default. Existing law specifies that only the types of public facilities and services specified in the resolution of formation may be financed unless prescribed procedures for extension of facilities and services and changes in special taxes are followed~ This bill would state that only those public facilities and services described in the resolution may be financed except as provided in those procedures. The bill would also provide that under no circumstances shall any buyer or prospective buyer of any completed structure for which a certificate of occupancy for private residential use has been issued within a district be asked, required, or induced to waive any It~'cs indicate changes or additions. * * * indicate omissions. ~" fight,to petition or take any other action authorized with respect to changes in 0 facilities, services, and special taxes. "~-Existi~ g-llw-reqUire~ln., general;.-, that .. the-prospective, purchaser of. a.' lotg.., parcel~, ~0r~unit.~of, a. ~ubdiv~sio~-:~ubjeet. tq:a s iai... ~a~x for ' .community facilities~districv ., . ..~..,-. .. ,.... ,:, : ..... . pec ~hall~be:furnished"a'notl~'of th~'special ta~. This.bill would revise, the notice and require that it be made in a specific format. Existing law requires the clerk of the legislative body to publish in a newspaper of general circulation within the district a notice of the hearing on a resolution to incur a bonded indebtedness and to publish or post a notice concerning the hearing. This bill would revise those requirements to specify that the notice published in the newspaper shall include specified information concerning the hearing. F. atisting law authorizes a. legislative body, with respect to outstanding bonds under the Mello-Roos Community Facilities Act, to order that any delinquent special taxes for the payment of the bonds, with penalties, interest, and costs, may be collected by an action in superior court to foreclose, the'lien of special tax. This bill would substitute debt for bonds in this provision~ Existing law requires the legislative body to give at least 30 days 'prior notice of the sale of the bonds to the California Debt Advisory Commission and annually to supply specified information on any bonds sold not later than July I of each year until the maturity of the bonds. This bill would require the legislative body to supply the commission with specified information about the bonds each year after the sale of the bonds and until the maturity of the bonds, and to notify the commission within I0 days if any of specified events relating to the bonds occurs. The bill'would change the July 1 reporting date to Oct°ber 30. The bill would provide that any proceedings to create, or make changes in, or issue bonds of, a community facilities district for which a resolution of intention to establish, or make changes in, a district and for which a special tax was first levied after January 1,. 1993, may be conducted in accordance with the Mello-Roos Community Facilities Act of 1982 as it existed when proceedings were initiated or as amended by this act. Existing law requires payment of a court reporter fee, as specified, in all civil actions in the Santa Cruz County Superior Court which last longer than 5 judicial days. This bill would require payment of that fee in all civil actions in the Santa Cruz County Superior Cour~ which last longer than one judicial day: Under the Improvement Bond Act of 1915, when property is sold for failure to pay assessments or reassessments, the purchaser takes the property subject to ail unpaid installments and other related charges not satisfied by application of the sales proceeds and subject to all public improvement assessments having priority. This bill would instead provide that the purchaser of property subject to delinquent installments of principal or interest on an assessment on reassessment at the tax collector's sale or a foreclosure sale for that delinquency shall take the property subject to all future installments of principal and interest on any ass~s- ment or reassessment. The people of the State of California do enact as £oHows: SECTION 1. Section 10176.5 of the Business and Professions Code is an~ended to read: § 10176.5. (a) The commissioner may, upon his or her own motion',' and shall Itah'cs indicate changes or additions. * * * indicate omissions. 1992 REG. SESSION 3231 CHAPTER 772 .. upon receiving a verified complaint in writing from any person, investigate an alleged violation of Article 1.5 (commencing with Section Il02) of Chapter 2 of Title 4 of Part 4 of Division 2 of the Civil Code by any real estate licensee within this state. The commissioner may suspend or revoke a licensee's license if' the licensee acting under the license has willfully or repeatedly violated any of thc provisions of Article 1.$ (commencing with Section 1 I02) of Chapter 2 of Title 4 of' Part 4 of Division 2 of the Civil Code. Co) Notm'thstanding uny other provision oF Article 1.5 (commencing with Section 1102) oF Chapter 2 oF Title 4 oF Part 4 o£ Division 2 oF the Civil Code, and in lieu oF any other civil remedy, su&h'vision (a) oF this section is the only remedy available For violations oF Section 1102.63 o£ the Civil Code by any real estate licensee ~ittu'n this state. SEC. 1.3. Section I102.6b is added to the Civil Code, to read: § 1102.6b. (a) This section applies to all transfers of real property for which all of the following apply: (1) The transfer is subject to this article. (2) The property being transferred is subject to a continuing lien securing the.levy · I of special taxes pursuant to the Mello-Roos Community Facilities Act (Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code). (3) A notice is not required pursuant to Section 53341.5 of the Government Code. (b) In addition to other disclosure required pursuant to this article. -~,i~o~~ co~in[ ,t~e special tax.as pro¥i.d..~.d..far~dn. Section~533~40..,2 .of..;' t~[ ~overnm3~t'~'~6"d'~ fr:$~ffi~0Cal.a~i:ii~!6~i(;hi.~-h [~vies a special tax pursuant to the Mello-Roos Community Facilities Act'-on the property being transferred, and shall deliver that notice 12r~hna~m~ t.a~[he..pro.sp.e.c._tiy.e,,p,u, rchaser,, .0~:.16ng.,~. the · ~otiees~are-,.made,.a~ilabl~y, tht - ' local agency (c) If a disclosure received pursuant to subdivision (b) has been delivered to the transferee, a seller or his or her agent is not required to provide additional information concerning, and information in the disclosure shall be deemed to satisfy the responsibility of the seller or his or her agent to inform the transferee regarding [ the special tax and the district. Notwithstanding subdivision (b)~'~[h~g~jn_~this$ i illr~onqmposes~a~duty.,to.,discover a special.tax or, district, not..actually~ known to the SEC. 1.5. Section 53312.7 is added to the Government Code, to read: §53312.7. (a) On and after ~J~ltli~grT.~j.~.j994,.ta local~,agenc, ma~ in i (1)..A_~tatement~o£the.priority~ that.various, kinds o£.public, facilities:shall.have'for' fiuancing.~through.the, use_of, thi~..ghapter, including public facilities to be, owned and operated by other public agencies, includi~'~ school district'S.' (2) A statement concerning the credit quality to be required of bond issues, including criteria to be used in evaluating the credit quality. ~,~0-1~Iatern~al~l!~e. Eilillg. atep~i,.t0~..be.~aken tO ensure, that prospe~tivi ro eat , ' ' ..................... ~ ............. r J. ~ ~a,ulla m~poseu unaer mis ~4!)~A~'~tatem~llt':gllncerning:'critena"f°r--evaluating the ~q.u. ity of-.tax..;alloeatim~ Itah'cs indicate changes or additions. * * * indicate omissions. SEC. t.S 1992 REG. SESSION ~'l°I'Illulaa"'.ari~onccrning-.d~§i[~b!e and ..~a,xi ~mu.m... a~o~nts ~of special.' tax.:to be, eviedagainst..any parcel pursua~¥ t~','ih]~'chapte~ (5) A statement of definitions, standards, and assumptions to be used in apprais- als required by Section 53324.5. (b) The goals and policies adopted by any school district pursuant to subdivision (a) shall include, but not be limited to, a priority access policy which gives priority attendance access to students residing in a community facilities district whose residents have paid special taxes which have, in whole or in part, financed the construction of school district facilities. The'degree of priority shall reflect the proportion of each school's financing provided through the community facilities district. In developing a priority access policy for residents of a community facilities district, 'a school district may incorporate a school district attendance policy including criteria for student assignment such as goals to achieve ethnic, racial, or . socioeconomic diversity; federal, state, or court mandates; transportation needs, safe pedestrian routes; grade levels for which facilities were designed; and ensuring students continuity of schooling within any single school year. SEC. 1.7. Section 53313 of the Government Code is amended to read: § $3313. .4. community facilities district may be established under this chapter to finance any one or more of the following types of services within an area: (a) Police protection services, including, but not limited to, criminal justice services. However, criminal justice services shall be limited to providing services for jails, detention facilities, and juvenile halls. (b) Fire protection and suppression services, and ambulance and paramedic services. (c) Recreation program services, library services, and the operation and mainte- nance of museums and cultural facilities. A special tax may be levied for this purpose only upon approval of the voters as specified in subdivision (b) of Section 53328. However~ the requirement contained in subdivision (b) of Section 53328 that a certain number of persons have been registered to vote for each of the 90 days preceding the close of the protest hearing does not apply to an election to enact a special tax for recreation program services, library services, and the operation and maintenance of museums and cultural facilities subject to subdivision {c) of Section 53326. (d) Maintenance of parks, parkways, and open space. (e) Flood and storm protection services, including, but not limited to, the operation and maintenance of storm drainaee systems, .and sandstorm protection systems. - (f) Services with respect to removal or remedial action tbr the cleanup of any hazardous substance released or threatened to be released into the environment. As used in this subdivision, the terms "remedial action" and "removal" shall have the meanings set forth in Sections 25322 and 25323. respectively, of the Health and Safety Code, and the term "hazardous substance" shall have the meaning set forth in Section 25281 of the Health and Safety Code. Community facilities districts shall provide the State Department of Health Se~'~ces and local health and building departments with notification of any cleanup activity pursuant to this subdivision at least 30 days prior to commencement of the activity. A community facilities district tax approved by vote of the landowners of the district may only finance the services authorized in this section to the extent that they are in addition to those provided in the territory of the district .befOre the district was created. The additional services may not supplant services already available within that territory when the district was created. Italics indicate changes or additions. * * * indicate omissions. 1992 REG. SESSION 3233 CHAPTER ??2 SEC. 1.8 SEC. 1.8. Section 53313.5 of the Government Code is amended to read: § 53313.5. A community facilities district may also finance the purchase, con- struction, expansion, improvement, or rehabilitation of any real or other tangible property with an estimated useful life of five years or longer or may finance planning and design work which is directly related to the purchase, construction, expansion, or rehabilitation of any real or tangible property. The facilities need not be physically located within the district. A district may not lease out facilities which it has financed except pursuant to a lease agreement or annexation agreement entered into prior to January 1, 1988. A district may only-finance the purchase of facilities whose construction has been completed, as determined by the legislative body, before the resolution of formation to establish the district is adopted pursuant to Section 53325.1, except that a district may finance the purchase of facilities completed after the adoption of the resolution of formation if the facility was constructed as if it had been constructed under the direction and supervision, or under the authority of, the local agency. For example, a community facilities district may finance facilities, including, but not limited to, the following: (a) Local park, recreation, parkway, and open-space facilities. (b) Elementary and secondary schoolsites and structures provided that the facilities meet the building area and cost standards established by the State Allocation Board. (c) Libraries. (d) Child care facilities, including costs of insuring the facilities against loss, liability insurance in connection with the operation of the facility, and other insurance costs relating to the operation of the facilities, but excluding all other operational costs. However, the proceeds of bonds issued pursuant to this chapter shall not be used to pay these insurance costs. (e) The district may also finance the construction or undergrounding of water transmission and distribution facilities, natural gas pipeline facilities, telephone lines, facilities 'for the transmission or distribution of electrical energy, and cable t~levision lines to provide access to those services to customers who do not have access to those services or to mitigate existing visual blight. The district may enter into an agreement with a public utility to utilize those facilities to provide a particular service and for the conveyance of those facilities to the public utility. If the facilities are conveyed to the public 'utility, the .agreement shall provide for a refund by the public utility to the district or improvement area thereof for the cost of the facilities. Any reimbursement made to the district shall be utilized to reduce or minimize the special tax levied within the district or improvement area, or to construct or acquire additional facilities within the district or improvement area, as specified in the resolution of formation. (f) The district may also finance the acquisition, improvement, rehabilitation, or maintenance of any real or other tangible property, whether privately or publicly owned, for the purposes described in subdivision (e) of Section 53313. (g) The district may also pay in full all amounts necessary to eliminate any fixed special assessment liens or to pay,' repay, or defease any obligation to pay or any indebtedness secured by any tax, fee, charge, or assessment levied within the area of a community facilities district or may pay debt service on that indebtedness. In addition, tax revenues of a district may be used to make lease or debt service payments on any lease, lease purchase contract, or certificate of participation used to finance authorized district facilities. (h) Any other governmental facilities which the legislative body creating the community facilities district is authorized by law to contribute revenue to, or construct, own, or operate. However, the district, shall not operate or maintain or, except as otherwise provided in subdivisions (e) and (f), have any ownership interest Itah'es indicate changes or additions. * * * indicate omissions. ~.. CHAPTER 772 3234 1992 REG. SESSION · SEC. 1.8 in any facilities for thc transmission or distribution of natural gas, telephone serVice, or electrical energy. (i)(1) A district may also pay for the following: (A) Work deemed necessary to bring buildings or real property, including privately owned buildings or real property, into compliance with seismic safety standards or regulations. Only work certified as necessary to comply with seismic safety standards or regulations by local building otficials may be financed. No project involving the dismantling of an existing building and its replacement by a new building, nor the construction of a new or substantially new building may be financed pursuant to this subparagraph. Work on qualified historical buildings or structures shall be done in accordance with the State Historical Building Code (Part 2.7 (commencing with Section 18950) of Division 13 of the Health and Safety Code). (B) In addition, within any county or area designated by the President of the United States or by the Governor as a disaster area or for which the Governor has proclaimed the existence o£ a state of emergency because o£ earthquake damage, a district may also pay for any work deemed necessary to repair any damage to real property directly or indirectly caused by the occurrence o£ an earthquake cited in the President's or the Governor's designation or proclamation, or by aftershocks associated with that earthquake, including work to reconstruct, repair, shore up, or replace any building damaged or destroyed by the earthquake, and specifically including, but not limited to, work on any building damaged or destroyed in the Loma Prieta earthquake which occurred on October 17, 1989, or by its aftershocks. Work may be financed pursuant to this subparagraph only on property or buildings identified in a resolution of intention to establish a community facilities district adopted within seven years o£ the date on which the county or area is designated as a disaster area by the President or by the Governor or on which the Governor proclaims for the area the existence o£ a state o£ emergency. (2) Work on privately owned property, including reconstruction or replacement privately owned buildings pursuant to subparagraph (B) o£ paragraph (1), may only be financed by a tax levy if all of the votes cast on the question of levying the tax, vote in favor o£ levying the tax. or with the prior written consent to the tax of the owners o£ all property which may be subject to the tax, in which case the prior !~ written consent shall be deemed to constitute a vote in favor of the tax and associated bond issue. Any district created to finance seismic safety work on privately owned buildings, including repair, reconstruction, or replacement of privately owned buildings pursuant to this subdivision, shall consist only of lots or parcels on which the legislative body finds that the buildings to be worked on, repaired, reconstructed, or replaced, pursuant to this subdivision, are located or were located before being damaged or destroyed by the earthquake cited pursuant to subparagraph (B} o£ paragraph (l) or by the a£tershocks o£ that earthquake. (j)(l) A district may also pay for thc following: (A) Work deemed necessary to repair and abate damage caused to privately owned buildings and structures by soil deterioration. "Soil deterioration" means a · chemical reaction by soils that causes structural damage or defects in'construction materials including concrete, steel, and ductile or cast iron. Only work certified as necessary by local building officials may be financed. No project involving the dismantling of an existing building or structure and its replacement by a new building or structure, nor the construction of a new or substantially new building or structure may be financed pursuant to this subparagraph. .' (B) Work on privately owned buildings and structures pursuant to this 'Subdivi- sion. including reconstruction, repair, and abatement of damage caused by soil deterioration, may only be financed by a tax levv if all of the votes cast on the Italics indicate changes or additions. * * · indicate omissions. 1992 REG. ~ESSION 3235 ' CHAPTER 772 SEC. 2 .' question of levying the tax vote in favor of levying the tax. Any district created to , finance the work on privately owned buildings or structures, including reconstruc- tion, repair, and abatement of damage caused by soil deterioration, shall consist : only of lots or parcels on which the legislative body finds that the buildings or structures to be worked on pursuant to this subdivision suffer from soil deteriora- tion. SEC. 1.9. Section 53313.8 of the Government Code is amended and renumbered to read: {}53313.85. Pursuant to Section 53313.5, a community facilities district may also finance the acquisition improvement, rehabilitation, or maintenance of any real or other tangible property, whether privately or publicly owned, for the purposes described in subdivision (O of Section 53313. SEC. 2. Section 53316.2 of the Government Code is amended to read: § 53316.2. Fa) A community f~;cih'tl'es district may finance facih'ties to be owed or operated by an entity other th~n the agency that created the da'strict, or services to be provided by an entity other than the agency that created the distric~ or any combination, only pursuant to a joint community Facilities agreement or a joint exercise o£ powers agreement adopted pursuant to this section. (b) At any time prior to the adoption of the resolution of formation creating a community facilities district the legislative bodies of two or more local agencies may enter into a joint community facilities .agreement pursuant to this section and Sections 53316.4 and 53316.6 or into a joint exercise of powers agreement pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 to exercise any power authorized by this chapter with respect to the community facilities district being created if the legislative body of each entity adopts a resolution declaring that such a joint agreement would be beneficial to the residents of that entity. (e) Notwithstanding Chapter 5 (commencing with Section 6500) of Division 7 of Title 1, a contracting party may use the proceeds of anv special tax or charge levied pursuant to this chapter or of any bonds or. other indebtedness issued pursuant to this chapter to provide facilities or services which that contracting party is otherwise authorized by law to provide, even though another contracting party does not have the power to provide those facilities or services. (d) Notwithstanding subdivision (b), nothing in this section shall prevent amend- ment of a joint community facilities agreement or a joint exercise of powers agreement, after adoption of a resolution of formation, if the amendment is necessary, as determined by the legislative body, to allow an orderly transition of governmental facilities and finances in the case of any change in governmental organization approved pursuant to the Cortese-Knox Local Government Reorgani- zation Act of 1985 (Division I (commencing with Section 56000) of Title 6). (e) Not~ithsta~da'ag any other provision of this chapter, no locM agency wlu'ch is party to a joint exercise of porters agreement or joint community iacih'ties agreement shall have primary responsibility For format'on of a da'strict unless that local agency is one or more o£ the £ollo~ing: (I) A city, a county, or a city and county. (2) An agency created pursuant to a joint powers agreement that is separate From the part~'es to the agreement, is responsible For the administration of the agreement, and is subject to the notification requirement o£ Section 6503.5. ($) An agency that is reasonably expected to hare responsibility For providing Facilities or services to be financed by a larger share of the proceeds of special taxes and bonds of the da'strict or da'stricts created pursuant to the joint exercise of Ita//cs indicate changes or additions. * * * indicate omissions. CHAPTER 772 3236 1992 REG. SESSION SEC. 2 powers agreement or the joint community £aciliU'es agreement than any other local agency. SEC. 2.5. Section 53317 of the Government Code is amended to read: § 53317. Unless the context otherwise requires, the definitions contained in this article shall govern the construction of this chapter. (a) "Clerk" means the clerk of the legislative body of a local agency. (b) "Community facilities district" means a legally constituted governmental entity established pursuant to this chapter for the sole purpose of financing facilities and services. (c) "Cost" means the expense of constructing or purchasing the public facility and of related land, right-of-way, easements, including incidental expenses, and the cost of providing authorized services, including incidental expenses. (d) "Debt" means any binding obligation to pay or repay a sum of money, including obligations in the form of bonds, certificates of~participation, long-term leases, loans from government agencies, or loans from banks, 'other financial institutions, private businesses, or individuals, or long-term contracts. (e) "Incidental expense" includes all of the following: (1) The cost of planning and designing public facilities to be financed pursuant to this chapter, including the cost of environmental evaluations of those facilities. (2) The costs associated with the creation of the district, issuance of bonds, determination of the amount of taxes, collection of taxes, payment of taxes, or costs otherwise incurred in order to carry out the authorized purposes of the district. (3) Any other expenses incidental to the construction completion, and inspection of the authorized work. (f) "Landowner" or "owner of land" means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of the land by the legislative body. The legislative body has no obligation to obtain other information as to the ownership of the land, and its determination of ownership shall be final and conclusive for the purposes of this chapter. A public agency is not a landowner or owner of land for purposes of this chapter, unless the land owned by a public agency would be subject to a special tax pursuant to Section 53340.1. (g) "Legislative body" means the legislative body or governing board of any local agency. (h) "Local agency" means any city or county, whether general law or chartered, special district, school district, joint powers entity created pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1, or any other municipal corporation, district, or political subdivision of the state. (i) "Rate" means a single rate of tax or a schedule of rates. (j) "Services" means the provision of police and fire protection services, recreation programs, library services, operation and maintenance of museums and cultural facilities, the operation and maintenance of parks and parkways, and the provision of flood and storm protection services, including, but not limited to." the operation and maintenance of storm drainage systems. "Services" includes the performance by employees of functions, operations, maintenance, and repair activities. SEC. 3. Section 53321 of the Government Code is amended to read: § 53321. Proceedings for the establishment of a community facilities'district shall be instituted by the adoption of a resolution of intention to establish the district which shall do all of the tbllowing: (a) State that a community facilities district is proposed to be established under It. ah'es indicate changes or additions. * * * indicate omissions. · 1992 REG. SESSION 3237 CHAPTER 772 the terms of this chapter and describe the boundaries of thc territory proposed for inclusion in the district, which may be accomplished by reference to a map on file in the office of thc clerk, showing thc proposed community facilities district. Thc boundaries of thc territory proposed for inclusion in the district shall include the entirety of any parcel subject to taxation by thc proposed district. Co) State thc name proposed for thc district in substantially the following form: "Community Facilities District No. " (c) Describe the public facilities and services Proposed to be financed by the district pursuant to this chapter. The description may be general and may include alternatives and options, but it shall be sutficientJy informative to allow a taxpayer ~ithin the ch'strict to understand what the funds of the ch'strict may be used to linance. If the purchase of completed public facilities or the incurring of incidental expenses is proposed, the resolution shall identify those facilities or expenses. facilities are proposed to be financed through any financing plan, incluch'ng, but not limited to, any lease, lease-purchase,' or installment-purchase arrangement, the resolution shall briefly describe the proposed arrangement. (d) State that, except where funds are otherwise available, a sPecial tax sufficient to pay for all facilities and services, secured by recordation of a continuing lien against all nonexempt real property in the district, will be annually levied within the area. The resolution shall specify the rate, method of apportionment, and manner of collection of the special tax in sufficient detail to allow each landowner or resident witlxin the proposed district to estimate the max/mum amount that he or she will have to pay. The legislative body may specify conditions under which the obligation to pay the specified special tax may be prepaid and permanently satisfied. The legislative body may specify conditions under which the rate of the special tax may ~be permanently reduced in compliance with the provisions of Section 53313.9. In the case o£ any special tax to pay for public facih'ties and to be levied against any parcel used for private residential purposes, (I) the maximum special tax shull be specified as a dollar amount which shall be calculated and thereby established not later than the date on which the parcel is first subject to the tax because of its use for private resideutiM purposes, which amount shall not be increased over time except that it may be increased by an amount not to exceed 2 percent per year, (2) the resolution shall specify a tax year after which no further special tax subject to this sentence shall be levied or collected, and (3) the resolution shall specify that under no circumstances will the special tax levied against any parcel subject to this sentence be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within the district by more than I0 percent. For purposes o£ this paragraph, a parcel shall be considered "used for private residential purposes" not later than the date on which an occupancy permit for private residential use is issued. Nothing in this paragraph is intended to prohibit the legislative body from establishing different tax rates for different categories of residential property, or from changing the dollar amount of the special tax for the parcel if the size of the residence is increased or ii: the size or use of the parcel is changed. (e) Fix a time and place for a public hearine on the establishment of the district which shall be not less than 30 or more tha~ 60 days after the adoption 'of the resolution. (f) Describe any adjustment in property taxation to pay prior indebtedness pursuant to Sections 53313.6 and 53313.7. (g) Describe the proposed voting procedure. The changes made to tiffs secu'on by Senate Bill No. 1464 of the 1991-92 Regular Session of the Legislature shall not ~pply to special taxes levied by &'stricts for which a resolution of formation was adopted before January 1. 1993. [ta//cs indicate changes or additions. * * * indicate omissions. CHAPTER 772 3238 1992 REG. SESSION SEC. 4 SEC. 4. Section 53326 of the Government Code is amended to read: § 53326. (a) The legislative body shall then submit the levy of any special taxes to the qualified electors of the proposed community facilities district subject to the levy or to the qualified electors of the territory to be annexed by the community facilities district subject to the levv in the next general election or in a special election to be held, notwithstandin~ any other requirement, including any require- ment that elections be held on specified dates, contained in the Elections Code, at least 90 days, but not more than 180 days, following the adoption of the resolution of formation. The legislative body shall provide the resolution of formation, a certified map of sufficient scale and clarity to show the boundaries of the district, and a sufficient description to allow the election official to determine the boundaries of the district to the official conducting the election within three business days after the adoption of the resolution of formation. Assessor's parcel numbers for the land within the district shall be included if it is a landowner election or the district does not conform to an existing district's boundaries and if requested by the official conducting the election.. If the election is to be held less than 125 days 'following the adoption of the resolution of formation, the concurrence of the election official conducting the election shall be required. However, any time limit specified by this section or requirement pertaining to the conduct of the election, including an), time limit or requirement applicable to any election conducted pursuant to Article 5 (commencing with Section 53345), may be waived with the unanimous consent of the qualified electors of the proposed district and the concurrence of the election official conducting the election. (b) Except as otherwise provided in subdivision (c), if at least 12 persons, who need not necessarily be the same 12 persons, have been registered to vote within the territory, of the proposed community facilities district for each of the 90 days preceding the close of the protest hearing, the vote shall be by the registered voters of the proposed district, with each voter having one vote. Otherwise, the vote shall be. by the landowners of the proposed district and each landowner who is the owner of record at the close of the protest hearing, or the authorized representative thereof, shall have one vote for each acre or portion of an acre of land that he or she owns within the proposed community facilities district. The number of votes to be voted by a particular landowner shall be specified on the ballot provided to that landowner. If the vote is by landowners pursuant to this subdivision, the legislative body shall determine that any facilities financed by the district are necessary to meet increased demands placed upon local agencies as the result of development or rehabilitation occurring in the district. (c) If the proposed special tax will not be apportioned in any tax )'ear on any portion of property in residential use in that tax year. as determined by the legislative body, the legislative body may provide that the vote shall be by the landowners of the proposed district whose property would be subiect to the tax if it were levied at the time.of the election. Each of these landowners ~hall have one vote for each acre, or portion thereoL that the landowner owns within the proposed district which would be subject to the proposed tax if it were levied at the time of the election. (d) Ballots for the special election authorized by subdivision (a) may be distrib- uted to qualified electors by mail with return postage prepaid or by personal service by the election official. The official conducting the election may certify the proper mailing of ballots by an affidavit, which shall constitute conclusive proof of mailing in the absence of fraud. The voted ballots shall be returned to the electiot{' officer conducting the election not later than the hour specified in the resolution calling the election. However, if all the qualified voters have voted, the election may be closed with the concurrence of the official conducting the election. It. ah'cs indicate changes or additions. * * * indicate omissions. 1992 REG. SESSION 3239 CHAPTER 772. SEC. 7 SEC. 5. Section 53330 of: the Government Code is amended to read: § 53330. Upon the establishment of a community facilities district, only the * * * public facilities and services as described in the resolution of formation may be financed by the district under the authority of this chapter, except as provided in this article. . SEC. 6. Section 53330.3 is added to the Government Code, to read: § 53330.3. Under no circumstances shall any bUyer or prospective buyer of any completed structure for which a certificate of occupancy for private residential use has been issued which is located within any district formed pursuant to this chapter be asked, required, or otherwise induced to waive any right to petition or take any other action authorized.pursuant to this article. No contract, agreement, or covenant shall be binding with' respect to such a waiver. SEC. 6.5. Section 53335 of the Government Code is amended to read: § 53335. The clerk of the legislative body shall give notice of the hearing in the .~. same manner and within the same time as provided for the giving of notice of a hearing on a resolution of intention to establish a community facilities district. The notice shall do all of the following: (a) Contain the text or a summary of the resolution. (b) State the time and place for hearing. (c) State that at the hearing the testimony of all interested persons or taxpayers for or against the proposed changes in public facilities and services and the levying of additional special taxes or of changing existing special taxes will be heard. The notice shall also describe, in summary, the effect of protests made by registered voters or landowners against the proposed changes in facilities or services and the levying of additional taxes or changes in existing taxes. (d) Describe 'the PrOPosed voting procedure. SEC. 7. 'Section 53340.2 of the Government Code is amended to read: § 53340.2. (a) The legislative body levying the special tax shall designate an office, department, or bureau of the local agency which shall be responsible for annually preparing the current roll of special tax levy obligations by assessor's parcel number on nonexempt property within the district and which will be responsible for estimating future special tax levies..The, designated office, deparh ~ment;:':,or:,~.bureau: shall .establish procedures to promptly respond to inquiries t concerning current and future estimated tax liabilityt Neither the designated office, department, or bureau, nor the legislative body, shall be liable if any estimate of future tax liability is inaccurate, nor for any failure of any seller to request a Notice of SpeciM Tax or to provide the notice to a buyer. (b). For purposes of enabling sellers of real property subject to the levy of speciai ~ taxes to satisfy the notice requirements o£ subch'visiOn Co) of Section 1102.6 o£ the' C~'VIl Code, the designated office, department, or bureau shall furnish a Notice oft SpeciM Tax to any" individuM requesting the notice or any owner of property t .,~ttbject to a .speciai tax levied by the locM agency within live ~working chlys o£~ receiving a request for such notice, i.Tbe local agency may charge'a reasonable fee ~ for this servicei '.¥c)...The notice shail contain the beading "NOTICE OF SPECIAL TAX" in type no smMler than 8-point type, and shall be in substantially the follovring: form, and although the form may be movh'lied as needed to clearly and accurately describe the' tax structure and other characteristics of &'stricts created before January 1, 1993. The notice shall be completed by the designated olfice, department, or bureap except for the signatures and date o£ signing: Italics indicate changes or additions. * * * indicate omissions. CHAPTER 772 3240 SEC. ? 1992 REG. SESSION NOTICE OF SPECIAL TAX COAIMUNITY FACILITIES DISTRICT NO. COUNTY OF , CALIFORNIA TO: THE PROSPECTIVE PURCHASER OF THE REAL PROPERTY KNOWN AS: THIS IS A NOTIFICATION TO YOU PRIOR TO YOUR PURCHASING THIS PROPERTY. Th/s property is subject to a special tax, which is in addition to the regular property taxes and any other charges and benefit assessments on the parcel. This special tax may not be imposed on MI parcels witlu'n the city or county where the property is located. If you fail to pay tMs tax when due each year, the property may be £oreclosed upon and sold. The tax is used to provide public facilities or services that are likely to parU'cularly benefit the property. YOU SHOULD TAKE THIS TAX AND THE BENEFITS FROM TttE PUBLIC FACILITIES AND SERVICES FOR WtlICH IT PAYS INTO ACCOUNT IN DECIDING WHETHER TO BUY THIS PROPERTY. (2) The maximum special tax win'ch may be levied against this parcel to pay for public facilities is ~ _ during the - tax year. This amount will increase by ~ percent per year after that (if applicable). The special tax will be levied each year until all of the authorized facilities are built and all special tax bonds are repaid, but in any case not after the -. tax 'year. An additional special tax will be used to pay for ongoing services, ff applicable. The maximum amount of this tax is dollars ($. ) during the -__ tax year. This amount may increase by , ff applicable, and may be levied until the -- ; tax year (or forever, as applicable). (3) The authorized facilit~'es which are being paid for by the speCiM taxes, and by the money received from the sale of bonds which are being repaid by the special taxes, are: These facilities may not )'et have MI been constructed or acquired and it is possible that some may never be constructed or acquired. In addition, the special taxes may be used to pay for costs of the following services: YOU I~IAY OBTAIN A COPY OF THE RESOLUTION OF FORAIATION WHICtl AUTHORIZED CREATION OF THE COI~IAIUNITY FACILITIES DISTRICT, AND WHICH SPECIFIES MORE PRECISELY HOW THE SPECIAL TAX IS APPORTIONED AND ftOW THE PROCEEDS OF THE TAX WILL BE USED, FROAI THE (name of jurisdiction) BY CALLING (telephone number). THERE MAY BE A CHARGE FOR THIS DOCUAIENT NOT TO EXCEED THE ESTIAIATED REASONABLE COST OF PROVIDING THE DOCU~IENT. I (WE) ACKNOWLEDGE THAT I (WE) HAVE RECEIVED A copy OF THIS NOTICE. I (WE) UNDERSTAND THAT I (WE) MAY TERMINATE THE CONTRACT TO PURCHASE OR DEPOSIT RECEIPT AFTER RECEIVING THIS NOTICE FROM THE OWNER OR AGENT SELLING THE PROPERTY. THE CONTRACT MAY BE TERMINATED WITHIN THREE DAYS IF THE NOTICE WAS RECEIVED IN PERSON OR WITHIN FIVE DAYS AFTER IT WAS DEPOSITED IN THE MAIL BY GIVINC Italics indicate changes or additions. * * * indicate omissions. · ,. 1992 REG. SESSION 3241 CHAPTER 772- ,, ,: SEC. 7.5 WRITTEN NOTICE OF THAT TERMINATION TO THE OWNER OR AGENT SELLING THE PROPERTY. DATE: SEC. 7.5. Section 53341.5 of the Government Code is amended to read: § 53341.5. fa) If a lot, parcel, or unit of a subdivision is subject to a special tax levied pursuant to this chapter * * * , the subdivider, his or her agent, or representative, shall not sell, or lease for a term exceeding five years, or permit a prospective purchaser or lessor to sign a contract of purchase or a deposit receipt . or any substantially equivalent document in the event of a lease with respect to the lot, parcel, or unit, or cause it to be sold or leased for a term exceeding five years, until the prospective purchaser or lessee of the lot, parcel, or unit has been furnished with and has signed a written notice as provided in' this section. The notice shall contain the heading "NOTICE OF SPECIAL TAX" in type no smaller than 8-point type, and shall be in substantially the following £orm, Mthough the form may be modified as needed, to clearly and accurately describe the tax structure and other characteristics of districts created before January I, 1993: NOTICE OF SPECIAL TAX CO~IMUNITY FACILITIES DISTRICT NO. COU~'I'Y OF , CALIFORNIA TO: THE PROSPECTIVE PURCHASER OF THE REAL PROPERTY KNOWN AS: THIS IS A NOTIFICATION TO YOU PRIOR TO YOUR ENTERING INTO A CONTRACT TO PURCHASE THIS PROPERTY. THE SELLER IS REQUIRED TO GIVE YOU THIS NOTICE AND TO OBTAIN A COPY SIGNED BY YOU TO INDICATE THAT YOU HAVE RECEIVED AND READ A COPY OF THIS NOTICE. (1) This property is subject to a special tax. which is in ad~'tion to the regular property taxes and any other charges, fecal special taxes, a~d benefit assessments on the parcel. It is imposed on this property because it is a new development, and may not be imposed generally upon property outside o£ this new development. If you fail to pay this tax when due each year, the property may be foreclosed upon and sold. The tax is used to provide public facilities or services that are likely to particularly benefit the property. YOU SHOULD TAKE THIS TAX AND THE BENEFITS FRO~I THE FACILITIES AND SERVICES FOR WHICH IT PAYS INTO ACCOUNT IN DECIDING WHETHER TO BUY THIS PROPERTY. (2) The maximum special tax which may be levied against this parcel to pay for public facilities is $ during the tax year. This amount will increase by ~ percent per year after that (it' applicable). The special tax will be levied each year until all of the authorized £acilities are built a~d ali special tax bonds are repaid, but in any case not after the tax year. An additional special tax will be used to pay [or ongoing service costs, if applicable. The maximum amount of this tax t~ Italics indicate changes or additions. * * * indicate omissions. i '. sec. dollars ($. .~ during the - ta~ year. ~ amount may increase by ~ ff applicable, and that part may be lev/ed untiJ the tax year (or forever, as applicable). (3) The authorized facih'~es which are being paid for by the special taxes, and by the money received from the saJe of bonds which are being repaid by the special taxes, are: These facih'ties may not yet have ail been consU'ucted or acquired and it is possible that some may never be constructed or acquired. In addition, the special taxes may be used to pay for costs of the following services: YOU MAY OBTAIN A COPY OF THE RESOLUTION OF FORMATION WHICH AUTHORIZF. D CREATION OF THE COMMUNITY FACILITIES DISTRICT, AND WHICH SPECIFIES MORE PRECISELY HOW THE SPECIAL TAX IS APPORTIONED AND HOW THE PROCEEDS OF THE TAX WILL BE USED, FROM THE (name of jurisdiction) BY CALLING (telephone number). THERE MAY BE A CHARGE FOR THIS DOCUMENT NOT TO EXCEED THE REASONABLE COST OF PROVIDING THE DOCUMENT. I (WE) PLEDGE THAT I (WE) HAVE READ THIS NOTICE AND RECEIVED A COPY OF THIS NOTICE PRIOR TO ENTERING INTO A CONTRACT TO PURCHASE OR DEPOSIT RECEIPT WITH RESPECT TO THE ABOVE-REFERENCED PROPERTY. I (WE) UNDERSTAND THAT I (WE) MA Y TERMINATE THE CONTRACT TO PURCHASE OR DEPOSIT RECEIPT WITHIN THREE DAYS AFTER RECEIVING THIS NOTICE IN PERSON OR WITHIN FIVE DA YS AFTER IT WAS DEPOSITED IN THE MAIL BY GIVING WRITTEN NOTICE OF THAT TERMINATION TO THE OWNER, SUBDIVIDER, OR AGENT SELLING THE PROPERTY. DA TE:. (b) "Subdivision," as used in subdivision (a), means improved or unimproved land that is divided or proposed to be divided for the purpose of sale, lease, or' financing, whether immediate or future, into two or more lots, parcels, or units and includes a condominium project, as defined by Section 1350 of the CD'vii Code, a community apartment project, a stock cooperative, and a limited-equity housing cooperative, as defined in Sections 11004, 11003.2, and 11003.4, respectively, of the Business and Professions Code. (c) The buyer shall have three days after delivery in person or five days after delivery by deposit in the mail of any notice required by this section, to terminate his or her agreement by delivery of written notice of that termination to the owner, subdivider, or agent. (d) The failure to furnish the notice to the buyer or lessee, and failure of the buyer or lessee to sign the notice of a special tax, shall not invalidate any grant, conveyance, lease, or encumbrance. (e) AnY person or entity who willfully violates the provisions of this section shall be liable to thc purchaser of a lot or unit which is subject to thc provisions of this section, for actual damages, and in addition thereto, shall be guilty of a public offense punishable by a fine in an amount not to exceed five hundred dollars ($500). In an action to enforce such liability or fine, thc prevailing party shall be awarded reasonable attorney's fees. SEC. 7.6. Section 53345.8 is added to the Government Code, to read: Itah'cs indicate changes or additions. * * * indicate omissions. .2 .... L;IiAi~'i'EH TI2' · · ' SEC. 8 ~ § 53345.8. (a) The legislative body may sell bonds pursuant to this chapter only if it determines prior to the award of sale of bonds that the value of the real property that would be subject to the special tax to pay debt service on the bonds exceeds by at least three times the principal amount of the bonds to be sold and the principal amount of ali other bonds outstanding that are secured by a special tax. levied pursuant to this chapter on property within the community facilities district or a special assessment levied on property within the community' facilities district. Any determination made pursuant to this subdivision shall be based upon the full cash value as shown on the ad valorem assessment roll or upon an appraisal of the subject property made in a manner consistent with the policies adopted pursuant to paragraph (5) of subdivision (a) of Section 53312.7 by a state certified real estate appraiser, as defined in subdivision (¢) of Section 11340 of the Business and Professions Code. The Treasurer may recommend definitions, standards, and as-. sumptions to be used for these appraisals. These definitions, standards, and assump- tions are advisory only, and the definitions, standards, and assumptions to be I applied to appraisals will be those adopted by the local agency pursuant to . paragraph (5) of subdivision (a) of Section 53312.7. (b) Notwithstanding the provisions of subdivision (a), if the legislative body selling the bonds finds and determines that the proposed bonds do not present any ' unusual credit risk due to the availability of credit enhancements or for other reasons specified by the legislative body, the provisions of subdivision (a) may be disregarded. (c) Notwithstanding the provisions of subdivision (a), if the legislative body selling the bonds finds and determines by a vote of not less than four-fifths of all of its members that the proposed bond issue, should proceed for specified public policy reasons, the provisions of subdivision (a) may be disregarded. A finding and determination by the legislative body pursuant to this subdivision ~ shall be final and conclusive upon all persons in the abSence of actual fraud, and , neither the legislative'body nor the district shall have any liability of any kind ! whatsoever out of, or in connection with, any finding and determination. , SEC. 7.7. Section 53346 of the Government Code is amended to read: § 53346. The clerk of the legislative body shall publish a notice of the hearing pursuant to SectYon 6061 in a newspaper of general circulation circulated within the district. The non'ce shall cOntm'n MI o£ the follotving information: (a) The text or a summary of the resolun'on adopted pursuant to SectYon 53345 ~lu'cb may refer to documents on file in the ottice of the clerk for detail (b) The time and place of the hearing on the proposal to issue debt. (c) A statement that at the bearing the testimony of MI interested persons, including MI persons ovening property in the area, for or against the proposed debt issuance, ~ill be beard. SEC. 7.9. Section 53347 of the Government Code is repealed. SEC. 8. Section 53356.1 of the Government Code is amended to read: § 53356.1. (a) As a cumulative remedy, if debt is outstanding, the legislative body may, not later than four years after the due date of the last installment of principal thereof, order that any delinquent special taxes levied in whole or in part for payment of the debt, together with any penalties, interest, and costs, be collected by an action brought in the superior court to foreclose the lien of special tax. (b) The legislative body may, by resolution, adopted prior to the issuance of debt under this chapter covenant for the benefit of debt holders to commence and diligently pursue to completion any foreclosure action regarding delinquent install It. ah'cs indicate changes or additions. * * * indicate omissions. CHAPTER 772 3244 1992 REG. SESSION SEC. 8 merits of any amount levied as a special tax for the payment of interest or principal of any bonds that are issued, or may employ a trustee to do so on behalf of the debt holders. The resolution may specify a deadline for commencement of the foreclosure action and any other terms and conditions the legislative body determines reason- able regarding the foreclosure action. (c) Except as provided in Section 53356.6, all special taxes, interest, penalties, costs, fees; and other charges that are delinquent at the time of the ordering of a foreclosure action shall be collected in the action. In the event that a lot or parcel of property has not been sold pursuant to judgment in the foreclosure action at the time that subsequent special taxes become delinquent, the court may include the subsequent special taxes, interest, penalties, costs, fees, and other charges in the judgment or modified judgment. SEC. 8.5. Section 53359.5 of the Government Code is amended to read: § $3359.5. fa) The legislative body shall, no later than 30 days prior to the sale of any bonds pursuant to this a_~icle, give written notice of the proposed sale to the California Debt Advisor~ Commission by mail, postage prepaid~ as required by Chapter 12 (commencing with Section 8855) of Division I of Title 2. (b) Each year after the sale of any bonds pursuant to this at,cie a~ter January I, 1993, and until the final maturity o£ the bonds, the legislative body shall, not later than October 30 of each year, supply the following information to the Cali£ornia Debt Advisory Commission by mail, postage prepaid: fi) The principal amount of bonds outstanding. (2) The balance in the bond reserve Fund. (3) The balance in the capitalized interest fund, if any. (4) The number of parcels which are delinquent with respect to their special tax payments, the amount that each parcel is delinquent, the length of time that each has been deffnquent, and when Foreclosure was commenced for each delinquent parcel. (5) The balance in any construction funds. (6) The assessed value o£ all parcels subject to special tax to repay the bonds as shown on the most recent equalized roll. (c) In adcfftion, the legislative body shall notify the Caff£ornia Debt Advisory Commission by mail, postage prepaid, within 10 days if a~y o£ the £ollowing events occllr: (I) The local agency or its trustee fails to pay principal and interest due on any scheduled payment date. (2) Funds are withdrawn from a reserve fund to pay principal and interest on the bonds. (d) Neither the legislative body nor the California Debt Advisory Commission shall be liable for any inadvertent error ia reporting the information required by this section. SEC. 9. Section 70139 of the Government Code is amended to read: § 70139. (a) A reporter's filing tee of twelve dollars ($12) shall be paid in actions and proceedings as specified in Section 68990.5 in the Santa Cruz County Superior Court. (b) In addition to any fee otherwise required, in civil cases that last longer than one judicial day, a fee per day equal to the per diem rate for official reporters pro tempore shall be charged to the parties for the services of an official reporter for the second and each successive day a reporter is required. (c) In addition to any fee otherwise required, in a civil case in which a court italics indicate changes or additions. * * * indicate omissions. ~,,, · ~ SEC. 12 · ~ ~' orders a daily transcript necessitating the services of two phonographic reporters, the party requesting the daily transcript shall pay a fee per day equal to the per diem rate for official reporters pro tempore for the services of the second, reporter for the first and each successive day. SEC. 10. Section 8807 of the Streets and Highways Code is repealed. SEC. 11. Part 14.5 (commencing with Section 8840) is added to Division 10 of the Streets and Highways Code, to read: PART 14.5 Title Taken by Purchaser § 8840. Except as otherwise provided in Section 8836 and notwithstanding any other provision of law, the purchaser of property subject to delinquent installments of principal or interest on an assessment or reassessment at the tax collector's sale pursuant to Part 13 (commencing with Section 8800), or at a foreclosure sale by order of court pursuant to Part 14 (commencing with Section 8830), shall take the property subject to all future installments of principal and interest on any assess- ment or reassessment which are not due and payable at the time of the tax collector's sale pursuant to Part 13 (commencing with Section 8800), or at the time of the judgment pursuant t° Part 14 (commencing with Section 8830), without regard to the priority of the lien thereof. SEC. 12. The provisions of Section 1.3 of this bill, adding Section 1102.6b to the Civil Code, shall become operative on July 1, 1993. It. ah'cs indicate changes or additions. * * * indicate omissions. MEMORANDUM March 3, 1995 TO: BUDGET AND FINANCE COI~ITTEE FROM: JUDY K. SKOUSEN, CITY ATTORNEY ROBERT M. SHERFY, CHIEF ASSISTANT CITY ATTORNEY SUBJECT: REQUEST FROM CASTLE & COOKE FOR ORDINANCE AUTHORIZING THE REALLOCATION OF SPECIAL ASSESSMENTS FROM BENEFITTED PARCELS TO OTHER PARCELS WITH THE EXPRESS WRITTEN CONSENT OF THE OWNERS OF THE PARCELS ASSESSED. 1. At the last meeting of the Budget and Finance Committee Castle & Cooke requested the Council to approve spreading the assessments in an assessment district throughout an entire tract and not simply assessing the lots immediately adjacent to the required improvement. This is already permitted by the City's ordinances and is normal procedure for assessment districts. When a subdivision tract map is approved, a determination is made regarding what public improvements are necessary to serve that subdivision or to mitigate impacts caused by the development of that subdivision. This relationship, i.e., necessary to or caused by form the "NEXUS" that allows the city to require the construction of those improvements as conditions of that subdivision approval. The City has by past policy allowed a developer to finance those improvements by forming an assessment district which would include and assess all the lots in that subdivision tract map. All the lots are included, not just those that front on the required street improvement. Thus no special permission is necessary for Castle & Cooke to proceed in this manner. 2. Castle & Cooke also requested at the last Budget and Finance Committee meeting to be allowed to leave out of the assessment district lots within the subdivision which would be benefitted by the improvement but had already been sold thus precluding Castle & Cooke from obtaining their consent to the assessment district. To do this will require a new ordinance be adopted because the direct relationship between amount of benefit and the amount of cost is not there. Those lots included in the district will have higher assessments to cover that share that would normally be charged to those lots left out of the district but which also benefit from the improvements to be built. An example is the already built out and sold subdivision north of Ming, South of Deer Peak Drive, West of Grand Lakes Avenue and East of Buena Vista Road. When this subdivision was approved, one of the conditions of approval was for that portion of Buena Vista Memorandum to Budget and Finance Committee March 3, 1995 Page 2 Road adjacent to the subdivision be widened and improved. The developer obtained permission to wait to do that work until other subdivisions in the area were ready to build their share of Buena Vista Road. Now the proposal is to assess the cost to improve Buena Vista Road even that portion adjacent to that already built subdivision entirely to the new subdivision to the North. The assessments to those new subdivisions will be higher because not all the benefitted lots are being included. 3. Since the last Budget and Finance Committee meeting Castle & Cooke has submitted their application for Assessment District 94-3 and it is apparent that there is some misunder- standings between Castle & Cooke and staff and Councilmembers as the assessment spread requested in that application appears to be substantially different from what is set out above. At the Committee meeting staff will be prepared at the Budget and Finance Committee Meeting with maps so that Castle & Cooke can explain to both staff and Councilmembers in detail what they are requesting. JKS/meg COUN~L 95-1/ASS~.B&F ? ASSESSMENT DISTRICT ':STUDy" ' "-',.' '" '" · , . ')':.. '..',-, ,... - · ' ' ' ' · ,' · ,' · : '',5',;":'~- :.: - ' '" R '" ..... ' -." .... :-"'.." "": '. 5-:': --SIL~'~,-R cREEK: . :::','.:f.:.:..';", .' . . .., ,.-."... :::~...~...,'~ : ,':." ,:, . . · ": " '"-' . '" ' : : ':. "~ {0 ayor.t...,. }.' ' ,'. ~, ,':.: .' ..... (~'.:..%..'.:::~ ,..../,,::-, :. .. ... . , ,..,. ,,- ,: , . . . .', .... ~ } ' . . ':, . ..,.-. , .. , ~...:d':.",,,,.:.::.,~. .. ..,, '. : .- . . ..' .. '.... Castle & CooseHrmes, lnc,'... . :..-.:::':-..:..,..': .... .... :-'.:.; :: ::.::.:: ::.-..':. :........:-.:..: .: ,... ,.,..-:: ....: :.'...,....:-..:. . : ~'.' ' " ',.' ' . . '. . -:".. '-, '.'. . ". -.,' ,:':'~ .', ' ' -.' · (: .': ....::'L::?.;::';:~' .,:~' ::..- . ... ,.. *... . ~.,.. . . ., . . ',, ....' .)' *'.;- .- ....,,?:, ~q* , .... · : .-,: ~, ,..; ~,~:,.: ?.~.... -z' , ',',:. :,'.'J'z' "~''b,' . ? ". '~ ' '.' .-':' ' : . . ' -"-",-' ','. '":~'..' . "", .' ,- -, ' "'.w' ".' 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',, ~ ". >~.',' ~.C' ::~ '",:',..-'~ Y'~ ~'.'~.'i.d~'~'"'."i~' ~:>.-'i~ '~ ': ...':. -'~: "-, :~ ~":.~,( '::' : ,"~:': . -: '~:., "," '-.'"~i' ' '. ?" .,~ '.' ":- : "~:' :: '~"-:~5'- <'?~'~"'.'"'~ ' . :,;-.' '.:' ~¢'-'.,h..:: n.',':,., '2',~.,'.;: 2, 5t..2(~}::~.~;,t ....5~'_',' ? - "-: ~-.:*'.-.*--',"'.',.'"'4 '~-,,' .'*"' '~ '" ;' '~ 7;'-' '~-. - ~.".'fg(~-"k'::" ' '. :'.. -"'., :, --~-) J.;'~:'.",' ."~.'.:; '4 .... (-,,..,i . . ' :: ~,. ~'. i:..t; T -)'." "~ ':~:' ?:~' '~:~: 2~"~ '~/~:2 '~-~'~,¢}~ ',:~ ~,. ,,:-':: :.:., .'~(' ;',~?.~;" ~:~:?*¢. );,i':-:::~;L.?,:'}" · ' '~: .4,:, b.:: '; . '. :.~:.¢ .::- ,' :.. ,., ",.:' '.>~.'-:' 4- ?-: -~:-.; .'; '.z~. ?..' ~x,-.-.,~.'-,~ '~ .,'"~. ' · . ~':~'.; ~ --':'}~x~ :-"' SILVER CREEK; The following improvements to the Silver Creek Community are proposed to be included in the District (See Exhibit 2). The improvement costs are prOposed to be assessed to all properties shown on Exhibit 1. 1. PANAMA LANE: Improvement of Panama Lane from Gosford Road to the Arvin-Edison Canal. Improvements include grading, paving, curb and gutter, sidewalks, water mains, storm drain facilities, utilities, street lights, and block walls. Right of Way Landscaping and irrigation improvements are included east of Reliance only. 2. HARRIS ROAD; Improvement of Harris Road from Reliance Drive to Ashe Road. Improvements include grading, paving, curb and gutter, sidewalks, water mains, sewers, storm drain facilities, utilities, street lights, landscaping, irrigation and monument signs. Walls on the south side . only are included. BRIMItALL NORTH: · The following improvements are proposed to be included in the District for the Brimhall area (See 4). Improvement Costs should be assessed to the properties as noted. (Exhibit 3) Exhibit 1. CALLOWAY DRIVE: Improvement of CalloWay Drive from the proposed Freeway northerly to Brimhall Road. Improvements include grading, paving, curb and gutter, sidewalks, water mains, sewers, storm drain facilities, utilities, street lights, block wall and median along the East 1/2 of the roadway. Landscaping is excluded. The City of Bakersfield will construct the center four lanes with the above work to be constructed as part of this project. Costs will be assessed only to Tr. 5386 C&D, Tr. 5680 A&B, and Tr. 5770. 2. VERDUGO ROAD: Improvement of Verdugo Road between Tr. 5544 B and Brimhall Road. Improvements' include completion of the East half of the road adjacent to 5544 A and full width construction of the roadway adjacent to Tr. 5544 B including grading, paving, curb .and gutter, sidewalks~ water mains, sewers, storm drain facilities, utilities, street lights, and block wall. Landscaping on the East side is excluded. Improvement costs to be assessed only to Tr. 5544 A&B. 3. OLD FARM ROAD; .I Improvement of Old Farm Road adjacent to Tr. 5489 B including grading, paving, curb and gutter, sidewalks, water mains, sewers, storm drain facilities, utilities, street lights and corner monuments. Wall and landscaping are excluded. Improvement costs to be assessed to Tr. 5489 B. SEVEN OAKS: The following improvements are proposed to be included in the District for the Seven Oaks/ Stockdale Highway area (See Exhibit 6). Improvement Costs should be assessed to the properties as noted. (Exhibit 5) 1. WHlTE OAK DRIVEl Improvement of White Oak Drive from Mountain Vista Drive to Old River Road including grading, paving, curb and gutter, sidewalks, water mains, sewers, storm drain facilities, street lights, excluding reimbursement for Joint trenching. Costs to be assessed to the Section 7 properties shown on Exhibit 5; I . 2. CAMINO MEDIA: i Improvement of Camino Media from Tr. 5292 to Old River Road grading, paving, curb and gutter, sidewalks, water mains, sewers, storm drain facilities, utilities, and street lights, excluding wall and landscaping. Costs to be assessed to Section 6 properties shown on Exhibit 5; 3. BUENA VISTA ROAD: i I Improvement of Buena Vista Road from Stockdale High School north of white Lane to Stockdale Highway. Improvements include grading, paving, curb and gutter, sidewalks, water mains, sewers, storm drain facilities, Kern River Canal .under crossing I modifications, utilities, and street lights. Wall and landscaping improvements are excluded. Street Construction assessed to all properties in Sections 6 and 7 shown on Exhibit 5. I