HomeMy WebLinkAboutOB 1 E. TUSTIN ASSESS 05-06-85OT,D BUS TNE,q,c;
~ NO. 1
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HONORABLE HAYOR AND CITY COUNCIL
FROM: STAFF
SUBJECT: EAST TUSTIN ASSESSMENT DISTRICT
gBCOMMENDATION:
That the Tustin City Council:
1. Accept the petition filed by The Irvine Company and order it
filed.
2. Direct staff to review the petition and report back to the
Council with recommendations for financing improvements in a
portion of the East Tustin area.
3. Approve the above subject to a reimbursement agreement
(scheduled for City Council consideration at its May 20, 1985
meeting) wherein The Irvine Company agrees to advance to the City
the funds necessary to initiate the Assessment District
proceedings.
A ~ OLD BUSINESS
· NO. 1
DATE: APRIL 25, 1985
TO:
FROM:
WILLIAM HUSTON, CITY MANAGER
BOB LEDENDECKER, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER
SUBJECT: EAST TUSTIN ASSESSMENT DISTRICT
RECOMMENDATION:
That the Tustin City Council:
1. Accept the petition filed by The Irvine Company requesting formation
of an Assessment District.
2. Direct staff to initiate the Assessment District proceedings.
Approve the above subject to a reimbursement agreement (scheduled for
City Council consideration at its May 20, 1985 meeting) wherein The
Irvine Company agrees to advance to the city the funds necessary to
initiate the Assessment District proceedings.
BACKGROUND:
On Wednesday, April 8, 1985, The Irvine Company (T-.I.C.) filed a petition to
initiate an Assessment District on a portion of the East Tustin area. This
proposed Assessment District covers an area generally bounded by Irvine Blvd. on
the north, Myford Road on the east, the Santa Ana Freeway on the south and
Browning Avenue on the west except for the area known as Ranchwood Homes (Tract
No. 6621). A copy of this petition and the transmittal correspondence is attached
for information.
In general, special Assessment District procedures allow for the financing and
construction of public works improvements by assessing the costs of such
improvements to all benefiting properties. The interest accruing on these
assessment bonds issued to finance public works improvements is exempt from
California and federal income taxes and the principal amount of the bonds is
secured by unpaid fixed asset liens on the involved properties.
The two Assessment District Acts which are proposed in the subject petition for
the East Tustin Assessment District are the 1913 Act for assessment proceedings
and the 1915 Act for the sale of bonds. The issuance of serial bonds are usually
in denominations of $5,000.00 or $10,000.00 to represent the total amount of all
assessments which are unpaid within the Assessment District.
The Assessment District boundaries are delineated on the attached map which is a
part of the attached petition, as are a general description of the proposed public
improvements.
DISCUSSION:
Once the City Council has accepted the petition and authorized the initiation of
the Assessment District proceedings, the procedure under the 1913 Act would be
generally as follows:
EAST TUSTIN ASSESSMENT DISTRICT
APRIL 25, 1985
PAGE 2
1. Engagement of the following consultants:
a. Assessment Engineer.
b. Bond Counsel/financial consultant.
c. Design Engineer for public improvements.
d. Environmental consultant, if required.
2. Design Engineer prepares plans, specifications and cost estimates for
public improvements.
3. Confirmation of environmental clearance.
Assessment Engineer prepares engineer's report to include the assessment
diagram, boundary map, assessment roll, method of cost spread and
description of improvements.
®
Preliminary engineer's report presented to City Council for approval and
adoption of a Resolution of Intention, City Council sets public hearing
date (at least 30 days thereafter). 'At this time Council may authorize
the call for construction bids and authorize the sale of bonds.
Assessment notices are mailed to property owners at least 20 days before
the public hearing date.
6. Assessment Engineer modifies the assessment roll and engineer's report to
reflect actual construction bids and bond btd amounts.
7. City Council holds public hearing, orders the work, confirmsthe
assessments, and approves the bond sale.
8. The property owner(s) has the option of paying off the assessment or
allowing the assessments to go to bond.
The Assessment District boundary includes 575 gross acres and has an estimated
improvement and administrative cost of $36,000,000.00.
This Assessment District will only affect the current and future property owners
within the proposed area of assessment. It will not financially impact any city
residents outside the proposed assessment area.
If desired by the City Council, a workshop can be scheduled to provide additional
detailed information on the proposed district and respond to any additional
questions that may arise.
Bob Ledendecker
Director of Public Works/City Engineer
BL:jr
Attachment
RECEIVED
April 8, 1985
Tustin City Council
300 Centennial Way
Tustin, CA 92680
SUBJECT: East Tusti9 Assessment District
Dear Mayor Greinke and Members of the Council:
APR 0 9 i985
TUSTINay ,, c WqRKS DEPT.
The petition requesting formation of an assessment district by the City
of Tustin to finance public improvements required for the development of
the auto center and residential housint in the East Tustin area is
enclosed. The scope of work'includes improvements to existing and new
arterial highways in East Tustin, a fair share contribution to funding
the important Jamboree Road interchanie construction, roadway and
related i~?rovements, as well as construction of the E1 Hodena Channel
and other flood control facilities. All of the property subject to the
assessment district is presently owned by The Irvine Company.
The formation of the assessment district will permit the construction of
major road improvements, flood control facilities and extension of
utilities in the East Tustin area which will benefit the residents of
the City of Tustin. In addition, the formation of the district vii1
permit us to provide some of these needed facilities well in advance of
the time they would otherwise be developed.
The creation of the district is intended to supplement and not preclude
other public funding sources for transportation, flood control, and
related improvements, includin$ City contributions for Laguna Road. We
are prepared to advance funds to the City, to offset costs incurred by
the City prior to the district's formation and bond sale. However, the
execution of a formal Reimbursement Agreement will be necessary, with
Council consent, to guarantee repayment of our advance of funds.
Design of the Laguna Road and Jamboree Road improvements is near
completion, In order to meet the schedule for development of the Auto
Center, the construction contract for these road improvements should be
awarded by June 3, 1985. As noted above, we will advance the necessary
funds in order for this work to be accomplished as a City-awarded public
works construction contract. In conjunction with the solicitation of
bids for any public works contract, we request the option be retained
for our Company to manage the work, as provided for in Public Contracts
Code Section 10485.
550 Newport Center Drive, P.O. Box l, Newport Beach, California 92658-8904 · (714) 720-2000
We recognize that certain {~.?rovements, including the Jamboree
Interchange and E1 Modena Channel are possibly more "regional" in
nature, and may require additional flexibility in allocating costs on
the basis of benefits received. Your help in considering this matter
with us in the future, including the possibility of using a Mello-Roos
financing for these special improvements, will be most appreciated.
We have previously reviewed the general scope and procedures involving
the district with the City Manager and staff. Additionally, we are
available to meet with you and City staff at your convenience to review
in further detail the scope of proposed improvements and respond to any
questions you may have. We appreciate your consideration of the
enclosed petition.
~Ver~y. truly rs,
Brad Olson
Vice President
Co~,uity Development
Enc lo sure
cc: WilliamHuston
Donald Lamm
Ronald Nault
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CITY OF TUSTIN
ASSESSMENT DISTRICT
(EAST TUSTIN AREA)
To the Honorable Mayor and Council of the City of Tustin:
The undersigned petitioners and property owners, owning property
within the boundaries of a proposed assessment district, as said
area is shown on a map attached hereto, request the City Council
to initiate proceedings for the formation of a special assessment
district, pursuant to the provisions of the "Municipal
Improvement Act of 1913", being Division 12 of the Streets and
Highways Code of the State of California, to be financed through
bonds under the terms and provisions of the "Improvement Bond Act
of 1915", being Division 10 of said code.
The petitioners hereby request as follows:
A. The proceedings and improvements shall include the
construction and/or acquisition of certain street, drainage,
utilities and bridge improvements, together with appurtenances
and appurtenant work, as said improvements are generally
described in the attached and referenced Exhibit A and shown on
the map attached hereto.
B. The property owners hereby expressly waive the proceedings
required and all limitations under the "Special Assessment
Investigation, Limitation and Majority Protest Act of 1931",
being Division 4 of the Streets and Highways Code of the State of
California and as authorized by Section 2804 of said Streets and
Highways Code.
C. This assessment district shall hereinafter be known and
referenced as the East Tustin Area.
D. The property owners further acknowledge that all costs and
expenses including incidental expenses in the assessment district
will be assessed in accordance with the benefits received from
the work of improvement.
E. The property owners further request that all efforts and
attempts be made so that the proceedings and the Resolution of
Intention can be adopted at the earliest date.
- 1 -
This petition was filed with the City Clerk of the City of Tustin
on this day of , 1985.
City Clerk
This Petition represents percentage of the assessable
acreage within the boundaries of the assessment district.
Superintendent of Streets
THE IRV~
By:
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EXHIBIT A
ASSESSMENT DISTRICT
(EAST TUSTIN AREA)
A®
Be
The construction of certain grading, paving, base, curbs and
gutters, parkway, drainage, intersection work, street
lights, signing, striping, landscaping, and utilities,
together with appurtenances and appurtenant work for the
following roadways:
Irvine Boulevard - the improvement of Irvine Boulevard
to its ultimate section along the south side, easterly
of Browning Avenue to Myford Road, including the
construction of drainage facilities and utilities.
Bryan Avenue - the widening of Bryan Avenue to its
ultimate street section between Browning Avenue and
Myford Road including drainage facilities and
utilities.
Laguna Road - the full-width improvement of Laguna
Road between Browning Avenue and Myford Road including
drainage facilities, a portion of which will be
publicly funded including drainage and utilities.
Browning Avenue - the widening of Browning Avenue
along its east side between the Santa Ana Freeway and
southerly of Irvine Boulevard including drainage
facilities and utilities.
Jamboree Road - the full-width improvement of Jamboree
Road between the Santa Aha Freeway and Irvine
Boulevard including drainage facilities and utilities.
Myford Road - the widening of Myford Road along the
west side to ultimate width section between Santa Aha
Freeway and Irvine Boulevard, including the
realignment of Myford Road between Bryan Avenue and
Irvine Boulevard including drainage facilities and
utilities.
The construction of traffic signal improvements at the
following intersections:
o Laguna Road at Browning Avenue
o Laguna Road at Jamboree Road
o Laguna Road at Myford Road
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Ce
o Browning Avenue at Bryan Avenue
o Bryan Avenue at Myford Road
o Myford Road at Irvine Boulevard
o Jamboree Road at Irvine Boulevard
o Jamboree Road at Bryan Avenue
o Jamboree Road at Auto Center Entry
Jamboree Road interchange at Santa Ana Freeway - fair share
participation in the full improvement of the Jamboree Road
interchange at the Santa Ana Freeway including the bridge
overcrossing of the Santa Ana Freeway and traffic signals
Flood Control Facilities - the improvement of the following
master planned drainage facilities:
o E1 Modena Channel between Browning Avenue and the
Santa Aha Freeway.
o F07S04 Channel
o F07S02 Channel
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