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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/06/2001 - ITEMS RELATING TO THE CREATION OF HARMONY HALF ACR AGENDA ITEM SUMMARY ITEM NUMBER: 23 A-B FORT COLLINS CITY COUNCIL DATE: February 6, 2001 STAFF: Matt Baker SUBJECT: Items Relating to the Creation of Harmony Half Acres Special Improvement District(SID)No. 92. RECOMMENDATION: Staff recommends adoption of the Resolutions. FINANCIAL IMPACT: Local street improvements are proposed for Harmony Drive in the interior of the Harmony Half Acres subdivision. The property owners will pay for the improvements through SID assessments on their property. Staff is proposing that special assessment bonds be issued to finance the cost of the improvements, and this item includes a Resolution to approve the submission of the ballot 40 question regarding the issuance of those bonds to the electors of the proposed District. EXECUTIVE SUMMARY: As Fort Collins grows,existing County subdivisions are being annexed into the City. These existing County subdivisions are often not built to City standards. It is City policy to provide only minor maintenance to annexed streets until they have been upgraded to City standards. County developments that are annexed into the City typically consist of rural gravel roads with no curb and gutter, and a system of borrow ditches for drainage. The City can help the residents of these subdivisions improve their streets through the Special Improvement District(SID)process. SID's are the preferred method of funding these annexed subdivisions,and are an element of the "Choice Streets" ordinances adopted by Council in 1998. Property owners in the Harmony Half Acres Subdivision have petitioned the City to create an SID for street,lighting,drainage,and curb-and-gutter improvements in their neighborhood. The petitions are on file in the City Clerk's Office and a copy of the petition form is attached to this item. Creation of an SID leads to a construction project funded by special assessments on the properties in the district. The following items are the first steps in creating an SID: DATE: February 6, 2001 2 ITEM NUMBER: 23 A-B A. Resolution 2001-14 Accepting the Petitions of Property Owners Regarding the Initiation of Harmony Half Acres Special Improvement District No. 92; Stating the Need For, and the Location of the Improvements to Be Made; Describing the Area to Be Assessed for the Same;and Directing the Director of Community Planning and Environmental Services to Prepare and Present to the City Council the Necessary Information For the Formation of Said District. B. Resolution 2001-15 Submitting a Ballot Issue to the Registered Electors of the Proposed Harmony Half Acres Special Improvement District No. 92 as Part of the Regular City Election on April 3, 2001. The first Resolution accepts the petitions of the property owners, generally stating the need for and the location of the improvements, the area to be assessed for the costs, and directs the Director of Community Planning and Environmental Services to prepare the plans and an estimate of the costs to be presented to City Council. The second item is a Resolution to place the SID bond issuance on the April ballot for a vote of the electors in the proposed District in accordance with Article X, Section 20 of the Colorado Constitution (the "TABOR Amendment"). These items are just the first step in the formation of a district to construct the improvements.If the bond issue for this SID is approved by the electors in the proposed District, staff will present a Resolution to Council adopting the plans, specifications, estimated cost, and the method of assessment for the SID. Staff will then prepare an ordinance for Council approval which will create the SID. Finally, Council will consider an ordinance authorizing the issuance of bonds to finance the improvements. BACKGROUND: Harmony Half Acres is a County subdivision created in 1971 as a rural, large lot subdivision. The subdivision was built with gravel roads, roadside drainage ditches, and no street lighting. The neighborhood was involuntarily annexed in 1989 after it was surrounded by City development. The City took over minor maintenance of the gravel streets, which consists of regular blading with a motor grader, and some minor additions of gravel base. The neighborhood residents have expressed an interest in upgrading the streets and drainage system to City standards, including paving, installing curb-and-gutter, and installing and upgrading street lighting. City staff has had several meetings with the neighborhood homeowners' association to explain the SID process and explore additional options for building the improvements. The neighborhood has decided to petition the City Council to create an SID to facilitate the construction of the improvements. The non-petitioning owners do not have strong objections to the creation of the SID. Improvements will consist of approximately 1700 feet of 24-foot-wide, rural residential street, 300 feet of storm drain piping, 2 catch basins, and street lighting. Council adopted Ordinance No. 182, 1998, as a part of the "Choice Streets" package and lists the SID process as the preferred method of improving annexed County streets to City standards. The SID process allows property owners to spread payments over a number of years,making it a viable option for funding, and allows homeowners to draw upon the experience of City staff, eliminating the need for outside consultants. DATE: February 6, 2001 3 ITEM NUMBER: 23 A-B The City of Fort Collins Policy GM-2.1 Annexation Policy of the City Plan Principles and Policies, outlines the following standards for upgrading County infrastructure which has been annexed into the City: Infrastructure standards. Developed land,or areas seeking voluntary annexation,must have their infrastructure improved(e.g.,streets,utilities and storm drainage systems)to City standards,or must have a mechanism(e.g. a special improvement district,capital improvements program or other type project)in place to upgrade such services and facilities to City standards before the City will assume full responsibility for future maintenance. It is City policy to provide only minor maintenance to annexed roadways that are not built to City standards. County developments that are annexed into the City typically consist of rural gravel roads with no curb and gutter, and a system of borrow ditches for drainage. As these annexed areas continue to develop,population density goes up,and traffic levels increase,it becomes increasingly important that the street system be brought up to City standards. Using the SID format to achieve these standards works to both the City's and the property owners' advantage. The property owners are able to use the City's technical resources,and to make installment payments for the project,and the City is able to upgrade street systems at the property owners' expense. SID criteria and policies adopted by Council, and set forth in the 1985 "Special Improvement Districts Manual, Section 11, Policies", are as listed below. 1. All public improvements as described in Chapter 22 of the City Code shall be eligible for inclusion in an Improvement District. However, the City may exclude certain improvements when it deems such improvements are not in the best interests of the City. 2. The City reserves the right to deny the creation of any District. 3. The proposed District should be consistent with the Master Street Plan and other planning documents of the City. The District should have an approved Master Plan. An approved Preliminary Plan may be required if local street or utility improvements are to be included within the District. The City may also require a Storm Drainage Plan to be submitted. 4. The total cost of the District should not exceed the appraised value of the improvements and the land to be included in the District. 5. The amount of encumbrances on the land in the District including the assessments of the District should not exceed 90% of the value of the land including the improvements without being acknowledged by subordinate lien holders, or the posting of a surety from a recognized company for 100%of the principal and interest of the construction cost of the District. 6. The cost to be borne by the City in a District must be currently available or minimized and/or deferred through credits or other mechanisms. 7. The City has the option to require property owners within the District to manage construction of the improvements themselves or through Professional Engineers DATE: February 6, 2001 4 ITEM NUMBER: 23 A-B where it is to the City's advantage to do so and the proposed managers can demonstrate experience and competence. 8. The City has the option to require privately managed Districts to bid and award contracts for construction of the public improvements when provided for in the District's Master Agreement and performed in conformance with the City Charter. 9. Construction activities of District improvements should not cause extraordinary inconvenience to properties choosing not to be a party to the District. 10. Should a default in the assessment payments of a District occur,the City shall have the right to immediately proceed with all legal remedies including a tax deed and sale of the affected land. 11. The City Manager may establish administrative policies and procedures for the Improvement District process and may recommend appropriate fees to the City Council. 12. Proposed improvements should be of benefit to the City within a reasonable time frame. SUMMARY: Staff believes that it is in the City's best interest to encourage County subdivisions to improve their own streets and drainage systems after annexation, through the use of an SID. The SID process is the preferred method of improving streets in County subdivisions annexed into the City. Property owners have the option of hiring a private contractor themselves,but payment is often required in advance, imposing a financial burden on homeowners. Using the SID process allows property owners to spread payments out over a number of years, making it a much more viable tool for constructing improvements in existing subdivisions. In addition, the SID process also allows property owners to draw upon the expertise of City staff, eliminating the need for outside consultants. And,in this kind of situation,the use of SIDS should present little,if any,financial risk to the City or the bond holders. The City is not at risk because the bonds will be paid solely from the assessments, and no other City revenues are pledged in support of the bonds. The bond holders' risk is nominal because the security for the bonds (the value of the improved property) far exceeds the estimated costs of the District that will be assessed against the properties. It is extremely unlikely that individual homeowners would put their homes at risk by defaulting in the payment of assessments that constitute a very small percentage of the value of their properties. The proposed Harmony Half Acres SID No. 92 will meet all of the adopted Council Policies regarding Special Improvement Districts. Staff believes that construction of the improvements in the Harmony Half Acres subdivision can be completed in a relatively short period of time, and that these improvements will have a positive impact on the neighborhood. RESOLUTION 2001-14 OF THE COUNCIL OF THE CITY OF FORT COLLINS ACCEPTING THE PETITIONS OF PROPERTY OWNERS REGARDING THE INITIATION OF HARMONY HALF ACRES SPECIAL IMPROVEMENT DISTRICT NO. 92; STATING THE NEED FOR, AND THE LOCATION OF THE IMPROVEMENTS TO BE MADE; DESCRIBING THE AREA TO BE ASSESSED FOR THE SAME; AND DIRECTING THE DIRECTOR OF COMMUNITY PLANNING AND ENVIRONMENTAL SERVICES TO PREPARE AND PRESENT TO THE CITY COUNCIL THE NECESSARY INFORMATION FOR THE FORMATION OF SAID DISTRICT WHEREAS,the Council has received petitions(the"Petitions")from property owners in the area(the"Petitioners")of the proposed HARMONY HALF ACRES SPECIAL IMPROVEMENT DISTRICT NO. 92, more specifically described on Exhibit "A", attached hereto and incorporated herein by this reference (the "District"), requesting that the Council initiate proceedings for the creation of a special improvement district for the purpose of acquiring,constructing, and installing street pavement,curb,gutters,street lighting,storm drainage,and other necessary appurtenances in the City of Fort Collins,Colorado,as more particularly described below(the"Improvements"); and WHEREAS, City Code Section 22-35(c) requires that the Petitions shall be subscribed by the owners of at least one-third of the frontage to be assessed for improvements to streets,including streetlighting,and by the owners of at least one percent of the area of the property to be assessed for any other improvements; and WHEREAS, City staff has reviewed the Petitions, and has verified that the minimum requirements of City Code Section 22-35(c) have been met; and WHEREAS,the Council has received the Petitions,accepts the same,and desires to proceed with the process of formation of the District. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the Petitions,as submitted by the Petitioners requesting the formation of the District, are hereby received and accepted as sufficient to meet the requirements of City Code Section 22-35(c). Section 2. That the Improvements to be constructed, more specifically described below, consist generally of street pavement, curb and gutter, storm drainage, street lighting and other necessary appurtenances,and that the Improvements are needed in order to provide improved access for vehicles to the properties abutting the streets to be improved, and in order to provide improved storm drainage to properties within the District. Section 3. That the Council hereby finds that the Improvements will confer special benefits on the real property in the District and general benefits to the City at large. Section 4. That the nature and location of the Improvements to be made in the District are as follows: a. Street improvements, including curb, gutter, asphalt, base course, and grading, will be made to Harmony Drive, extending west from its intersection with Timberline Road to a cul-de-sac at the north boundary of the District; b. There are no improvements contemplated to the existing water distribution system, except for the adjustment of existing valve access boxes and fire hydrants to match the new pavement; c. There are no improvements contemplated to the existing sanitary sewer system; and d. Storm drainage improvements will consist of an 18 and 24-inch reinforced concrete pipe storm sewer system to receive storm drainage from the improved street surface,including catch basins and release structures, and minor grading improvements to the common property area of the subdivision. Section 5. That the Director of Community Planning and Environmental Services is hereby directed to prepare and present to the Council the following: a. Preliminary plans and specifications for the Improvements described herein; b. An estimate of the probable total cost of the Improvements, including the cost of constructing the same, engineering, legal and advertising costs, interest during construction and until assessments are made by ordinance against the properties benefitted, and other incidental costs incurred in the District; and c. A map of the District to be assessed for the cost of Improvements. Section 6. That the area to be assessed for the Improvements shall be the District as described in Exhibit "A", attached hereto, as set forth in the Petitions heretofore submitted by Petitioners. Section 7. That said Special Improvement District shall be known as the Harmony Half Acres Special Improvement District No. 92. Passed and adopted at a regular meeting of the City Council held this 6th day of February, A.D. 2001. Mayor ATTEST: City Clerk • . Exhibit "A" Harmony Half Acres Special Improvement District No. 92 All of the property located within the plat of Harmony Half Acres, a plat of record with the Clerk and Recorder of Larimer County, located in the Southeast Quarter of Section 31,Township 7 North,Range 68 West of the Sixth Principal Meridian, City of Fort Collins, Latimer County, Colorado, excluding Lot 20 and Lot 21. • RESOLUTION 2001-15 OF THE COUNCIL OF THE CITY OF FORT COLLINS SUBMITTING A BALLOT ISSUE TO THE REGISTERED ELECTORS OF THE PROPOSED HARMONY HALF ACRES SPECIAL IMPROVEMENT DISTRICT NO. 92 AS PART OF THE REGULAR CITY ELECTION ON APRIL 3, 2001 WHEREAS,Chapter 22,Article III of the City Code empowers the City to establish special improvement districts,and sets forth procedures and requirements for forming and organizing special improvement districts and providing for the improvements to be constructed thereby, and for the assessment of costs associated with those improvements; and WHEREAS, the Council has received petitions from property owners in the area (the "Petitioners")of the proposed HARMONY HALF ACRES SPECIAL IMPROVEMENT DISTRICT NO. 92,more specifically described on Exhibit"A",attached hereto and incorporated herein by this reference(the"District'),requesting that the Council initiate proceedings for the creation of a special improvement district for the purpose of acquiring,constructing,and installing street pavement,curb, gutters,street lighting,storm drainage,and other necessary appurtenances in the City of Fort Collins, Colorado, as more particularly described below (the "Improvements"); and WHEREAS,on this same date,the Council has approved Resolution 2001-14,Accepting the Petitions of Property Owners Regarding the Initiation of Harmony Half Acres Special Improvement District No.92;Stating the Need For,and the Location of the Improvements to Be Made;Describing the Area to Be Assessed for the Same; and Directing the Director of Community Planning and Environmental Services to Prepare and Present to the City Council the Necessary Information For the Formation of Said District; and WHEREAS,Article X,Section 20 of the Colorado Constitution("TABOR"),requires voter approval in advance for the creation of any multiple-fiscal year direct or indirect debt, except when certain specified exceptions apply; and WHEREAS, in order to finance the acquisition, construction, and installation of the Improvements,the Petitioners have proposed the issuance of special assessment bonds payable solely from special assessments levied against properties located within the proposed District, to finance the costs of acquiring,constructing and installing the Improvements consistent with the purposes of the proposed District; and WHEREAS, in order to issue such special assessment bonds, the City is required to obtain the approval of a majority of the electors of the proposed District, as defined in Section 31-25- 501(1.7),Colorado Revised Statutes,that is,those persons registered to vote in the general elections in the State of Colorado and either residing in the proposed District or owning (or married to a person owning) taxable real property within the proposed District; and WHEREAS,Article X,Section 3 of the Charter of the City of Fort Collins provides that the Council may,without petition therefor,submit any question to the vote of the people at a regular or special election; and WHEREAS,a regular municipal election is scheduled to be held on Tuesday,April 3,2001, and a local ballot issue pursuant to TABOR may properly be placed on the ballot as part of that regular municipal election; and WHEREAS, the purpose of this Resolution is to exercise the Council's authority to submit to the vote of the electors of the proposed District,a ballot issue regarding the proposed issuance by the City of special assessment bonds payable solely from special assessments levied against properties located within the proposed District, to finance the costs of acquiring,constructing and installing the Improvements consistent with the purposes of the proposed District. NOW,THEREFORE,BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That there is hereby submitted to the electors of the proposed District, as defined in Section 31-25-501(1.7), C.R.S., at the next regular City election to be held on April 3, 2001, the following ballot issue: CITY-INITIATED BALLOT ISSUE FOR THE ISSUANCE OF SPECIAL ASSESSMENT BONDS FOR THE PROPOSED HARMONY HALF ACRES SPECIAL IMPROVEMENT DISTRICT NO. 92 SHALL CITY OF FORT COLLINS DEBT BE INCREASED BY NOT MORE THAN $540,000 IN PRINCIPAL AMOUNT,WITH A REPAYMENT COST OF NOT MORE THAN $993,600 TOTAL PRINCIPAL AND INTEREST, BY THE ISSUANCE OF SPECIAL ASSESSMENT BONDS,PAYABLE SOLELY FROM SPECIAL ASSESSMENTS LEVIED AGAINST PROPERTIES LOCATED WITHIN THE PROPOSED CITY OF FORT COLLINS, COLORADO,HARMONY HALF ACRES SPECIAL IMPROVEMENT DISTRICT NO. 92, TO FINANCE THE COST OF ACQUIRING, CONSTRUCTING AND INSTALLING STREET IMPROVEMENTS, INCLUDING EARTHWORK, RECONSTRUCTION, ASPHALT PAVING, CURBS AND GUTTERS, DRAINAGE, STREET LIGHTING AND OTHER NECESSARY,INCIDENTAL OR APPURTENANT PROPERTIES OR FACILITIES, SUCH BONDS TO MATURE, BEAR INTEREST AND BE CALLABLE FOR REDEMPTION PRIOR TO MATURITY, WITH OR WITHOUT A PREMIUM, AS MAY LATER BE DETERMINED BY THE CITY COUNCIL? YES NO 2 • Section 2. That the City Clerk is hereby directed to accept comments submitted in favor of and in opposition to the foregoing ballot measure from those persons eligible to vote thereupon through the end of the business day on February 16, 2001, in accordance with Section 1-7-901, C.R.S.,and to summarize any such comments received in accordance with Section 1-7-903,C.R.S. Passed and adopted at a regular meeting of the Council of the City of Fort Collins held this 6th day of February, A.D. 2001. Mayor ATTEST: City Clerk 3 Exhibit "A" Harmony Half Acres Special Improvement District No. 92 All of the property located within the plat of Harmony Half Acres, a plat of record with the Clerk and Recorder of Latimer County, located in the Southeast Quarter of Section 31,Township 7 North,Range 68 West of the Sixth Principal Meridian,City of Fort Collins, Larimer County, Colorado, excluding Lot 20 and Lot 21. 4 A GEMSTONE CT day, SUMMERSTONE CT C< WINfERONE w z ONyOR �EYPINECT N c TM �� TIMBERLINE LN Harmony 1/2 Acres IM N 300 0 300 Feet City of Fob Collins PETPI'ION AND WAIVER OF A PROPERTY OWNER FOR THE ORGANIZATION OF A SPECIAL IMPROVEMENT DISTRICT FOR CERTAIN STREET, CURB AND GUTTER, DRAINAGE, AND STREET LIGHTING IMPROVEMENTS, BETWEEN AND ADJACENT TO THE HARMONY HALF ACRES SUBDIVISION, WITHIN THE CITY OF FORT COLLINS, COLORADO. To the Honorable City Council of the City of Fort Collins: Ladies and Gentlemen: The undersigned Petitioner, being the owner of property described on Exhibit"A", attached hereto and by this reference made a part hereof("the Property"), respectfully petitions the City Council ("the Council") of the City of Fort Collins("the City")to institute the necessary proceedings to authorize the passage and adoption of an ordinance organizing certain improvements and certain lots and lands abutting thereon into a special improvement district under the provisions of Article III of Chapter 22 of the Code of the City(`the Code")relating to local public improvements, for the purpose of ordering certain improvements in said proposed district in accordance with such provisions of the Code and in accordance with the plans and specifications approved by the Council. • DISTRICT IMPROVEMENTS District improvements will consist generally of reconstruction and asphalt paving of Harmony Drive within the Harmony Half Acres Subdivision, including earthwork, curb and gutter, drainage improvements, street lighting, paving and other necessary appurtenances. ASSESSMENTS The costs of acquiring, constructing, or otherwise installing the foregoing improvements in the District shall be assessed against the Property on the basis of each of lots 1 through 19 of the Harmony Half Acres Subdivision sharing equally in the costs, and an estimate of such costs to be more fully described in the estimate to be prepared pursuant to Section 22-35 of the Code. The entire unpaid principal of such assessment, together with interest accruing thereon to the next assessment interest payment date(except to the extent that the interest on any bonds to be issued by the City for the proposed district has been capitalized through such date), shall be immediately due and payable by the seller or transferor thereof prior to the sale or transfer of any lot, tract, or parcel, unless the purchaser or transferee thereof shall acknowledge, in writing, receipt of notice that the seller or transferor is not paying such assessment in full prior to such sale or transfer and that such assessment against any lot, tract, or parcel shall continue to be alien . thereon. The restriction of this paragraph shall be deemed to constitute a covenant of the undersigned petitioner running with the Property and shall be binding upon said Petitioner and any subsequent owner of the Property. The undersigned Petitioner hereby covenants to take all steps necessary to assure that the restrictions contained in this paragraph will be binding upon all owners, from time to time, of the Property, including recordation of this Petition and Waiver, in all appropriate public offices for real property in Larimer County, Colorado, relating to the Property. The undersigned Petitioner hereby covenants to include such restriction in any documents transferring any interest in the Property to another to the end that such transferee has notice that such transferee is bound by such restrictions. The City shall have the right to seek specific performance of the requirements of this paragraph. WAIVER The undersigned Petitioner, by execution hereof, hereby waives any and all of the provisions of Article III of Chapter 22 of the Code relating to or requiring public hearings, notices, publications, letting of bids, and all other procedural aspects of the creation of the proposed district,the construction of the improvements, and the levying of assessments therefor, assessments as set forth in Section 22-90 of the Code, the maximum cost of improvements as set forth in Section 22-36 of the Code, the provisions of Section 22-81 of the Code relating to apportionment of costs of street intersection improvements, and any right to challenge the manner or amount of the assessments to be made against real property in the proposed district, and further, the undersigned Petitioner does hereby agree that the full amount of assessments against the real property set forth in the legal documents creating the proposed district shall be made to pay the costs incurred for the improvements in the said district. The Petitioner does hereby agree to hold the City harmless from any loss incurred by the Petitioner or third parties should the City fail to create or fund the proposed district. Any requirements of Article III of Chapter 22 of the Code deemed not waived hereby because of lack of specificity shall in no manner affect the valid waiver of requirements specifically stated herein. The aforesaid waiver may not be withdrawn after it has been submitted to the Council for consideration. This Petition may be amended, however, after such submission with the consent of the City Manager for the purpose of adding additional waivers. By: . STATE OF COLORADO) ) ss. COUNTY OF LARBbIER) The foregoing instrument was acknowledged before me this day of 19___, by as for the purpose herein above set forth. Witness my hand and official seal. My Commission Expires: Notary Public • • EXHIBIT "A" LOT# PLAT OF HARMONYHALFACRES SITUATE IN THE SOUTHEAST 114 OF SECTION 31, TOWNSHIP 7 NORTH, RANGE 68 WEST OF THE 6"'P.M., LARIMER COUNTY, COLORADO.