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Home My WebLink AboutAD 03-3 Memo RE Meeting Notes 10-14-03;b.MUN[C1PAL BOND FINANCING FOR LAND DEVELOPMENT AND COMMUNITY FACILITIES PROJECTS Wilson & Associates 4221 WEST SIERRA MADRE, SUITE 201 FRESNO, CALIFORNIA 93722 OFFICE (559) 275-5445 FAX (559) 275-6613 MEMORANDUM TO: Terry Chiles Lyn Espericueta Don Galey Carey Garberolio Bill & Susie Kalbaugh Greg Klimko Mike McMasters Marian Shaw Bob Sherfy Nelson Smith Sam Sperry Jahn Stinson Ross Sweet FROM: Ed Wilson/Deja avic ~~ Ed Wilson GIVIL ENGINEER CE 23269 DATE: November 10, 2003 SUBJECT: Notes from Meeting held on October 14, 2003 - Re: Proposed City of Bakersfield Assessment District for the Cosmo Area Water Project RE: Our No . 29-63 0 A copy of the list of the meeting participants is enclosed. The scope of improvements for the Cosmo Area water project was briefly described as a water supply/distribution system to extend the existing-waterline in Paladino Drive (currently ending at thy; southeast corner of the proposed assessment district area), and in Cosmo Street, Morningside Drive, Bella Drive, and Queen Street to the property line of each parcel in this area. There are currently 2 developed and undeveloped parcels in the Cosmo Area Water Project. The assessment district project financing would not~include costs of individual parcels' connection fees, meters, or additional services beyond 1(o~~e)1-inch service per parcel. The estimated construction cost (per property owners' petition} is about $260,000. It was noted that this e~~timate is about 2 years old ar~d its original source is not known. The improvements will be designed, owned, constructed, and operated. by Cal Water. The water system improvements will be c~xnstructed by a contractor approved by ~a1 Water after the close of ~~ bidding process. The City will enter into an agreement with Cal Water, stipulating the project funding (through the sale of thy- a;~sessment district bonds) and respor~ ~ibilities of each involved , party property owners, City, ~:al Water). The City Finance Director (Greg Klimko) and the Assessment Engineer (Ed Wilson) explained the process and costs of an assessment district formation and bond sale. It was presented to the property owners that assessment proceeding and, bond issuance costs can add about 30-35% of the improvement costs to the total assessment amount, and that this way of project financing is relatively expensive. The property owners present at the meeting commented that obtaining financing through an assessment district, even if proportionately more expensive, appears to be the only feasible solution for solving their water supply problems. It was noted that in order to be able to issue tax-exempt bonds for this project it needs to be a part of a much larger assessment district, in which it would represent not more than 5% of the overall assessment district umproveme~t costs. There is currently another proposed assessment district in the planning stage with an estimated improvement cost of about $S.b mullion, which the Cosmo Area Water Project might be able to join in forming an assessment district with all tax-exempt bonds. See the enclosed copy of the minutes from the project team meetings with the developers. The City is currently in the process of finalizing the Cosmo Area layo~~.t map with proposed utility easements needed to be obtained before the project is constructed, and will submit that map to Cal Water for their initial design aid cost estimate of the proposed water system. The $2,000 initial deposit required in order for C:l water to start their cost estimate has been collected by the Cosmo Area property owners, and the City and its Bond Counsel are in the process of finalizing an agreement to be signed by the property owners representative(s) and the City for channeling said ;; $2, 000 fee through the City to gal water. Mike McMasters of Cal U~'ater said that Cal water will need approximately 6 to 8 wee~~s to finalize an initial desugnlcost estimate once they receive the $2,000 fee and the layout plan` from the City. ~~~~ Said agreement will also cover the Cosmo Area water Project propor~~ents depositing $8,000 to ~~ -cover an estimated appraisal fee for the parcels in this area. After an ~:pprausal report is completed, it will be possible to determine how much funding through an assessment district this area will be able to support in order to me~~+ the City-required value-to-lien ratio of not less than 3 :1 for each parcel and not less than 4:1 for the entire assessment district. The Cosmo Area property owners decided that the total proposed assessment district costs will be allocated to~ the benefited parcels in proportion to parcel areas. It way discussed at the meeting that: the current land zoning and lar~ use will be researched, and based on that research it will be determined what is the .most eei~uutable way for spreading the assessment in the Cosmo Area. Several parcels in the Cosmo .~~rea are also located in an existing City of Bakersfield Assessment District No. 93-2 ("AD 93-2"). The current AD 93-2 unpaid balance of appraximately $5,000 per parcel in the Cosmo Area will have to be paud-off from the proceeds of the new district, and those costs will be assessed only to the benefitted parcels. Based on the discussions held ~~t the meeting with the developers on November 5, 2003, a preliminary tine-line for camp~~ting the proposed assessment district -proceedings was set. A copy of that schedule is enclosed for reference. -2- ~ ~V~cl ~N~t~n- V~l~ziuvC~ C~c-i or~cvL \ ~, 'Zxx~ 3 4~ 1 ~}~ r J \ ~~ ~~C I; ,' • ~ ~ ~ fir; ,, ., ,_,~r ~,.~ 1 '~~ .-,.•~- / ~. .~ ~ g i'; -~ i ` I C~,~ /l~~ra ;,z ~; ' -`~ ~ I ~; ,~` 4.~'~ . ~ } j i .1 t Y 4 , ~ ~ ~ ~ ~ ~ ~. ~ r l' ~ .r _...-_ i 1 ~~ , P~ r+. F .~ .•. ~r ~ ,~ ~ I ~~€ ,; r ., . r (. ti v,',•' ;4 ~,~ „~ ~ i!1 .,a ' s t' 1 I ~ I i. ~ I ~, ~~ 'i ,~ 7 ~~ I' :'+ i ~1j, ~. tir li; f...a I; ,~;r. ;r s i ~ ~~~ ~s F ~rvG,.,bV ~~~cl. S 'l` ~C - 4~ f ~` ~ ~, r '~~ ,7 ~ .. ~~ ~ ~,,.:- ~~ ~ ~ ~ ~ ~ . 5 f ~- ~~ ~~ ~ ~''~~ 1 ~ f C.rr . ~~ ~~~~ C/~~~' .- J ~~ -- , f i : -- .., /' ~- ~f ~ ~j _ ~ij tl (~~ ~~ ~ i.~tJ' ~~ r~ . . . ..!~~~~ F' ~ ~fff.. ,{f j r ( l f~ TASK PLAN for City oaf Bakersfield Assessment. District No. 03-3 Seven Qaks West IIUBrighton Place IU Fairway Oaks South/Cosmo} CUMPLETIQN TASK DATL A. Last Available Council meeting to approve List of Unpaid Assessments June 9, 200 (To get first billing to 2004 Property Tax} B. End 30-day assessment cash payment May 20, 2004 C. Record assessment Apri120, 2004 D. Hearing/Count Ballots/Confirm Assessment April 14, 2004 E. Last date to record tract maps April 6, 2004 F. Last date to record boundary map March 30, 2004 G. Last date to approve tract maps March 24, 2004 H. Preliminary Approval of Assessment by Council February 25, 2004 I. Appraisal data tables ready January 30, 2004 J. Distribute draft assessment data January 21, 2004 K. Transmit ACAD 14 tract maps to Wilson December 11, 2003 L. First Council action to start assessment proceedings December 10, 2003 M. File documents With City Attorney for December 10 Council November 21, 200 29630Sched.wpd t 1/14/20Q;3