HomeMy WebLinkAboutResolution - - 2002-342 - 10/29/2002RESOLUTION NO. 2002-342
A RESOLUTION OF THE COUNCIL OF THE CITY OF
FRESNO, CALIFORNIA AMENDING PUBLIC FACILITY FEE
PROGRAM AND DELEGATING TO CITY CONTROLLER
THE ABILITY TO MAKE FURTHER AMENDMENTS
WHEREAS, December 15, 1998, the Council of the City of Fresno, California (the
"Council") adopted Resolution No. 98-389, approving a Financing Program for Public Facility
Fees (the "Program"); and
WHEREAS, the Program sets forth a procedure for the City of Fresno (the "City") to
create community facilities districts, pursuant to the Mello -Roos Community Facilities Act of
1982, at Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of
California (the "Act") for financing certain eligible public facilities fees; and
WHEREAS, the Council has decided to amend the Program to add certain public
facilities fees as fees eligible for financing under the Program, and to delegate authority to the
City Controller to add eligible fees to or delete eligible fees from the Program by written
amendment.
NOW, THEREFORE, THE COUNCIL RESOLVES as follows:
SECTION 1. The Council hereby amends the Program as set forth above, and approves
the restated Program in Exhibit A, attached.
SECTION 2. The Council delegates to the City Controller the authority to add eligible
public facilities fees to or delete eligible public facilities fees from the Program by written
amendment.
SECTION 3. This resolution shall take effect immediately upon its adoption.
Attachment:
Exhibit A: Financing Program for Public Facility Fees
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Resolution No. 2002-342
Amending Public Facility Fee Program
Page 2
STATE OF CALIFORNIA
COUNTY OF FRESNO
CITY OF FRESNO
I, REBECCA E. KLISCH, City Clerk of the City of Fresno, certify that the foregoing
resolution was adopted by the Council of the City of Fresno, at a regular meeting held on the 29th
day of October, 2002.
AYES Boyajian, Calhoun, Castillo, Duncan, Quintero, Ronquillo, Perea
NOES : None
ABSENT None
ABSTAIN None
REBECCA E. KLISCH
City Clerk
BY:
APPROV � AS O FORM
CITY A O 'S OFF E
BY:
De u
CITY OF FRESNO
FINANCING PROGRAM FOR
PUBLIC FACILITY FEES
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TABLE OF CONTENTS
INTRODUCTION.......................................................................................................................... I
DEFINITIONS...................................................................................................... I
PROJECT ELIGIBILITY..................................................................................................... 2
ELIGIBLEFEES............................................................................................................................ 3
INELIGIBLE FEES.................................................................... 3
...................................................
HOW THE PROGRAM WORKS................................................................................................. 3
TERM AND CONDITIONS OF BONDS...... ............................................................................... 3
DISCLOSURE REQUIREMENTS............................................................................................... 4
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CITY OF FRESNO
PUBLIC FACILITY FEE FINANCING PROGRAM
INTRODUCTION
The City Council has recognized the need to facilitate the payment of certain
development fees imposed by the City of Fresno (the "City"). As a result, the City Council has
adopted this document to establish a Public Facility Fee ("PFF") Program.
The development fees imposed on development can be significant on individual projects.
Lump sum payment of these fees can be a burden and sometimes a barrier to development. The
PFF Program has been designed to defer payment of these fees by allowing the property owner to
make payments over time.
The financing method for this program is a Mello -Roos Community Facilities District (a
"CFD"
Under the PFF Program, the City will issue Mello -Roos bonds. The bond proceeds are
used to pay the development fees or to reimburse property owners who have prepaid such fees.
The property owner repays the bond debt over a period of time.
Prior to participation in this program, property owners are encouraged to discuss the legal
and financial aspects with their advisors and consultants.
For more information about the PFF Financing Program you may call between 8:00 a.m.
and 5:00 p.m. or write to:
Public Works Department
City of Fresno
2600 Fresno Street
Fresno, California 93721
DEFINITIONS
Unless the content otherwise requires, the terms employed in this document shall have the
meanings specified below.
a. Bonds: bonds authorized and issued under the Mello -Roos Act of 1982, or such other
mechanism as is utilized by the City in its discretion.
b. Bond Counsel: special counsel retained by the City to assure compliance with applicable
federal and state tax and other laws and regulations relating to public financing.
C. Bond Underwriter: the investment banker(s) retained by the City to design, developer
and execute the sale of bonds in the market place.
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d. City: the City of Fresno.
e. Community Facilities District ("CFD"): a special district formed pursuant to the Mello -
Roos Community Facilities Act of 1982, to finance specific public improvements or
public services, and where properties within the district are levied a special tax in
accordance with the rate and method of apportionment adopted as part of the district
proceedings.
f. Eligible Fees: those development fees which have been determined by the City to be
eligible for financing in accordance with the program set forth in this document.
g. Fair market value, or value: the amount of cash or its equivalent which property would
bring if exposed for sale on the open market under conditions in which neither buyer nor
seller could take advantage of the exigencies of the other and both have knowledge of all
of the uses and purposes to which the property is adapted and for which it is capable of
being used and of, the enforceable restrictions upon uses and purposes.
h. Special Tax Consultant: consultant retained by the City to develop the rate and method
of apportionment and other special tax formulas and criteria for a Mello -Roos CFD.
i. Value -to -Lien Ratio: the value of a parcel of land as determined by the City relative to
the amount for which land secured bonds may be sold for that parcel.
PROJECT ELIGIBILITY
In order to make financing of development fees economical and to facilitate the use of
Mello -Roos bonds, the following eligibility requirements have been established.
1. The project must be a development within the City.
2. All taxes and assessment on the property must be current.
3. The property owner must have received all land use entitlements and be prepared to
commence construction on the subject parcel(s).
4. The total fees eligible for financing for each application must be at least $1,000,000.
5. The property value to lien ratio shall be at least 3:1. The value of the property must take
into account all existing and future assessments and special taxes as well as the proposed
lien resulting from the PFF Program.
6. Each property owner is required to pay the costs of issuing bonds under the PFF Program,
which costs may be financed as part of the program.
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ELIGIBLE FEES
The PFF Program has been structured to provide financing of development fees, which
are directly related to public improvements. Development fees related to non-public facilities
and/or private property improvements are not included. The following is a listing of
development fees, which are eligible for financing through this program. The City Controller,
from time to time by written amendment, may add or remove certain fees as eligible fees under
the PFF Program.
Wastewater Facilities Fees:
• Herndon Trunk Sewer Fee, per Fresno Municipal Code Section 9-503(a)(5).
• Wastewater Facilities Sewer Fee, per Fresno Municipal Code Section 9-503(a)(6).
Water Supply Facilities Fees:
• Water Supply Well Fee Area, 101-S, per Fresno Municipal Code Section 14-
107(a)(5).
• Water Supply Bond Debt Service Fee, Area 101-S, per Fresno Municipal Code
Section 14-107(a)(8).
■ Water Meter/Service Connection Charges.
INELIGIBLE FEES
Other development fees are not included in this program, and are not eligible for
financing. Ineligible fees include, without limitation, the following: building permit, plan check,
seismic, City business operations tax, permit processing, grading and drainage, environmental,
entitlement processing, and planning fees.
HOW THE PROGRAM WORKS
A property owner may apply for this program by completing and submitting a letter of
application to the City directed to the Public Works Department. The property owner shall
provide such information as the City reasonably requests to assess the creditworthiness of the
property owner and the viability of the proposed development.
TERM AND CONDITIONS OF BONDS
The City shall establish all terms and conditions of the bonds. The City shall be
responsible for administering bond issues including, but not limited to, the following decisions:
a. Determining the amount of capitalized interest that may be required, if any.
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b. Determining the term and interest rate for the bonds.
C. Determining the amount of the reserve accounts for the bonds.
d. Controlling all bond proceeds and authorizing disbursements.
e. Determining the authorized investments of bond proceeds until disbursement.
f. Determining compliance with federal, state and local tax and related laws.
g. Selecting bond counsel, the bond underwriter, and the special tax consultant.
h. Conducting sale of bonds.
DISCLOSURE REQUIREMENTS
The property owner shall be responsible for complying with all applicable federal and
state statutory disclosure requirements in transactions with persons purchasing properties within
the district. Specifically, to ensure that prospective purchasers within a community facilities
district are fully informed, the property owner shall disclose in writing all information regarding
the obligation to pay special taxes imposed under the Mello -Roos Law. A Notice of Special Tax
shall conform to the specifications of Section 53340.2 et seq. of the Government Code. The
property owner shall also comply with Section 53341.5 of the Government Code that obligates
the owner of any property subject to a special CFD tax to provide the Notice of Special Tax
described above before the sale or long-term lease (over five years) of such property. The
prospective buyer shall sign the Notice of Special Tax (disclosure statement) before the
prospective buyer enters any binding commitment to purchase property in the district.
The property owner shall also be responsible for complying with applicable ongoing
secondary market disclosure after the bonds are issued, including providing information to the
regulatory agencies of material events affecting the property.
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