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HomeMy WebLinkAbout4 Donner Lake Assessment Agenda Item # r - 1 lic Utility District Memorandum To: Board of Directors From: peter Holzmeister Date: March 28, 2002 Subject: Audit of Donner Lake Assessment District formation records Mary Chapman and I have been talking with Chris Fisher of Muni-Financial about conducting a performance audit to make sure we have not missed any steps in the formation of the Donner Lake Assessment District. Attached is a proposal from Mr. Fisher. You will probably recall that Muni-Financial has been retained by the District to administer the ongoing Assessment District procedures. It is rare that we form an assessment district. The process is complex. Mary and I sometimes wonder if we have missed anything. We would feel better if a competent person, familiar with the complex workings of assessment district, would take a look at our records and report to us any problems. RECOMMENDATION: I recommend that the Board approve the proposal dated January 25, 2002 from Muni-Financial. Corporate Office MuniFlnaneial 287b5 Single Oak Drive. Suite 200 A WILLDAN COMPANY Temecula, CA 92590 909,699-3990 fax 909/699-3460 WWW.munLcom January 25, 2002 RECD FEB 2002 Mr. Peter Holtzmeister Truckee-Donner PUD 11570 Donner Pass Rd. P.O. Box 309 Truckee, CA 96160 Subject:Proposal forAssessment Engineering Services Dear Peter: As we discussed in our conference call, MuniFinancial has prepared this proposal to assist the Utility District with Donner Lake Water Assessment District No. 00-1. Please view the following scope of services as a menu from which the Utility District can select all or none of the following services, based on your needs. 'Scope Formation Audit Review the documents on file with the Utility District and recorded in Nevada County and Placer County to verify all necessary documentation has been completed in accordance with the Streets and Highways Code sections related to the 1913 Act and 1915 Act. • Meet with District staff to identify file locations and review all resolutions, maps, diagrams,plans, and specifications on file for the Assessment District. • If uncertain from District files, verify with recorder's offices of each County the recording information associated with the Proposed Boundaries Map, Assessment Diagram, Notice of Assessment,and any subsequent Release of Liens. • Create a list of items that remain to be taken to the District Board for authorization, filed in the District's office,and recorded with the Counties'Recorder's offices. • Verify that the lien information is current and that the correct parcels have liens recorded against them. If necessary, create the Notice of Assessment attachment (the document that shows the lien on each property and is tied to the Assessment Diagram). In addition, we will prepare a Release of Lien for parcels that are to be removed from district. • Work with District staff and bond counsel to prepare the necessary documents, including a new diagram and Amended Engineers Report, and complete the filing and recording, as necessary. Anaheim Industry Jacksonville Kansas City Lancaster Oakland Sacramento 5an Diego Seattle Temecula Washington. D.C. Engineering Audit Perform a cursory review of parcel factors including size, assessed value, and land use and compare this information with the assessment liens to identify any changes to the assessments prior to recording the assessment lien. + Compare the Assessor's information from each County to the parcels within the assessment district to create three reports: 1. A listing of all parcels with a lien,but with assessed valuation less than $1,000. 2. A listing of all parcels with a lien, but owned by a governmental agency (flood control, city, school,library, etc.). 3. A listing of parcels where the land use used to calculate the assessment is different from that provided in the Assessor's record. + Analyze this information to provide a discussion document to review with District staff to determine if any assessment liens should be changed administratively. Equalization Fee Prepare justification for an equalization fee to allow the District to charge currently undeveloped parcels their fair share of the improvement and bond costs upon development. • Prepare documentation per Government Code Section 66000 necessary to allow the District to enact the Equalization Fee. • Attend up to two public meetings to explain the fee and gain necessary Board approval. • Develop appropriate language to include all undeveloped parcels within the District • Develop an appropriate schedule of fees to allow bonds from the existing assessment district to be prepaid using the equalization fee. • Assist Developer staff and bond counsel in developing resolutions and reports for Board approval. Proposed For all of the above services we propose a time and materials fee based on the following billing rates: Title Hourly Rate Division Manager $180 Principal Consultant 145 Senior Project Manager 125 Project Manager 105 Senior Analyst 85 Analyst 75 Analyst Assistant 65 Support Staff 45 We anticipate that the fees will not exceed the following amounts, however, these fees may be adjusted as more information is obtained: Formation Audit - $ 4,500 Engineering Audit - $1,750 Equalization Fee - $15,500 We look forward to discussing this proposal with you. Please contact Angel Lucero or myself at (800) 755-6864 at your convenience. Sincerely, MuniFinancial Chris Fisher Project Manager > 1 g District Administration Services �.;12 Agenda Item # Memorandum To: Board of Directors From: Peter Holzmeister Date: March 28, 2002 Subject: Donneer Lake Assessment Distict exemption policy You will probably remember our discussions regarding exempting open space or common area parcels from assessment at Donner Lake. The homeowners at Wolfe Estates took umbrage over the requirement that they would need to restrict use of their open space parcels irrevocably and in perpetuity to qualify for an exemption. Their comments sent us back to the drawing board to determine if we could craft a policy that satisfies them and us. Attached for your review and comparison are two policies, Alternate One and Alternate Two. The essential difference is that Alternate One contains strict language requiring a perpetual and irrevocable deed restriction. Alternate Two requires a deed restriction that effectively becomes permanent in that it is difficult to repeal, but it is softer in its wording, and may, therefore, be acceptable to Wolfe Estates. I think Alternate Two is sufficient for our purposes. Alternate One is the ultimate in protection for the District. I have been reviewing our records to determine if the Board ever adopted the Alternate One policy. It was discussed in October of 2001, but I am not sure if it was adopted. The minutes from that meeting are among those that were not prepared when Susan Craig left. Barbara is now catching up on those minutes. In any event, you have the option of implementing either Alternate. OPTION ONE DRAFT RESOLUTION PROVIDING FOR THE EXEMPTION OF COMMON AREA PARCELS FROM THE ASSESSMENT UNDER THE DONNER LAKE ASSESSMENT DISTRICT WHEREAS the TDPUD (the "District") formed the Donner Lake Assessment District (the "Assessment District") pursuant to Resolution Number 00-1, adopted by the District on May 2, 2001, for the purpose of funding the acquisition and rebuilding of the Donner Lake water system, as defined in said resolution; and WHEREAS the method of assessing parcels of land within the Assessment District provides for an assessment to all parcels which benefit from the acquisition, rebuilding and service of water within said District, which parcels are developed or have the potential of development thereon; and WHEREAS certain parcels within the Assessment District have been irrevocably restricted in perpetuity such that there shall never be any improvement nor occupancy thereon nor the requirement of water service, whatsoever; and WHEREAS the District wishes to adopt a process by which such parcels of land that will never be improved nor occupied may be exempted from assessment for the acquisition and rebuilding of the Dormer Lake water system; and WHEREAS the Board of Directors of the District desires to establish a policy defining the terms and conditions under which a parcel of land may be considered for exemption, and exempted from the assessment; NOW THEREFORE BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE DISTRICT THAT THE FOLLOWING POLICY IS ADOPTED: DONNER LAKE ASSESSMENT EXEMPTION POLICY A. COMMON AREA EXEMPTED FROM ASSESSMENT 1. A parcel of land within the Donner Lake Assessment District, which is or has been irrevocably restricted in perpetuity, such that it (i) meets the definition of"Common Area' as set forth herein, and (ii) meets the other requirements and conditions set forth herein, shall not be assessed by the Assessment District. 2. A parcel of land, sought to be exempted from the assessment, must be irrevocably dedicated and restricted, pursuant to a declaration of covenants, conditions or restrictions, deed restriction or other declaration, in a form and content acceptable to District, enforceably setting forth that said parcel is and shall be dedicated and restricted so as to meet the definition of Common Area, as hereinafter defined, in perpetuity. B. "COMMON AREA" DEFINED 1. Common Area shall be defined as any parcel of land that is owned and controlled, for the common use and enjoyment of association members, by a duly formed and existing homeowners' association or property owners' association, which association (i) is formally and duly organized as a nonprofit mutual benefit corporation, and/or(ii) consists of owners within a duly formed and existing association which contained not less than five (5) unimproved parcels at the time the association was formed. Common Area shall constitute and be defined by an irrevocable and perpetual declaration of restriction, made by the association owning and controlling said parcel or lot, and acceptable to District, specifying that (i) no professional nor commercial activities of any kind or nature shall be suffered, allowed or permitted, and (ii) no structures, buildings, improvement, or occupancy greater in scope than the list of permissible structures and uses set forth herein, as such list may be amended from time to time, shall be permitted. 2. Common Area shall be further defined to consist of a lot or parcel of real property which has a unique identity for tax purposes, such as its own Assessor's Parcel Number ("APN"), separate from other lots or parcels. The use of a Common Area shall not include any professional or commercial activity of any kind or nature, including rental of the Common Area to any person, group, or entity for any purpose. The use of a Common Area, and the improvements which may be made thereon, shall be limited to the following uses and improvements, none of which shall ever be connected to any water system or electric system nor require water or electric service: (a) Paths or walkways for pedestrians, equestrians, and bicyclists, whether paved or unpaved, which shall not exceed six (6) feet in average width, and uses associated with such paths or walkways; (b) Picnic tables and uses associated therewith; (c) Security fences; (d) Steps leading to beach areas, and use of the Common Area for beach access and beach use; (e) Gazebos and other non-enclosed or partially enclosed structures, not exceeding 100 square feet in floor area, and uses associated with such structures; (f) Docks extending into Donner Lake, and uses associated therewith. (g) Paved or unpaved driveways and parking C. APPLICATION FOR EXEMPTION 1. Any homeowners' association or property owners' association which (i) owns and controls a parcel, (ii) meets the aforementioned definitions and criteria, and (iii) desires to be exempt from the levy of an assessment for a parcel which it owns or controls, shall make application to the General Manager of the District in the form and content approved by the General Manager. Said application shall include, at minimum: (i) a current preliminary title report as to each and every parcel of real property sought to be exempted, together with any and all items noted as an exception of record, as reflected by said preliminary title report; (ii) a copy of any recorded restriction then in existence meeting the aforementioned definitions and criteria; (iii) the proposed restrictions upon which the application is based; and (iv) such further documents as the General Manager may deem necessary or advisable for purpose of consideration of the application. The General Manager shall submit the matter to the Board of Directors for approval or rejection at a regular or special meeting. 2. Any approval by the Board of Directors of an application for exemption from assessment shall be subject to the further condition that each and every owner of record shall join in any declaration of restriction, or other instrument, irrevocably restricting the parcel(s) as Common Area, as defined herein, and shall be accompanied by the joinder and/or consent of all lenders, mortgagees, beneficiaries under deed of trust and/or those persons or entities having a beneficial interest in the parcels sought to be exempted. Exemption from the assessment shall not be effective unless and until a declaration of restrictions, to District's satisfaction, is issued and delivered to District. The costs of procuring said title preliminary report shall be borne in their entirety by the applicant. 3. The applicant shall allow periodic inspections of the parcel of property sought to be exempted by the District or other authorized agent from time to time upon District providing forty-eight (48) hours notice D. REVOCATION OF EXEMPTION l. In the event that any lot or parcel for which an exemption has been granted ceases to meet the definition of "Common Area" set forth in this Policy, as it may be amended from time to time, or structures are erected or uses made which are not included on the list of approved structures and uses, as it may be amended from time to time, the District may revoke any exemption from assessment granted to a parcel. 2. Prior to revoking an exemption from assessment, the District shall provide notice of the pending consideration of revocation to the owner of the affected lot or parcel, and an opportunity to be heard at the public hearing at which the District's Board of Directors shall consider revocation of the exemption. OPTION TWO DRAFT RESOLUTION PROVIDING FOR THE EXEMPTION OF COMMON AREA PARCELS FROM THE ASSESSMENT UNDER THE DONNER LAKE ASSESSMENT DISTRICT WHEREAS the TDPUD (the "District") formed the Donner Lake Assessment District (the "Assessment District") pursuant to Resolution Number 2001-09, adopted by the District on May 2, 2001, for the purpose of funding the acquisition and rebuilding of the Donner Lake water system, as defined in said resolution; and WHEREAS the method of assessing parcels of land within the Assessment District provides for an assessment to all parcels which benefit from the acquisition, rebuilding and service of water within said District, which parcels are developed or have the potential of development thereon; and WHEREAS certain parcels within the Assessment District have been restricted such that there shall never be any improvement nor occupancy thereon nor the requirement of water service, whatsoever; and WHEREAS the District wishes to adopt a process by which such parcels of land that will never be improved nor occupied may be exempted from assessment for the acquisition and rebuilding of the Donner Lake water system; and WHEREAS the Board of Directors of the District desires to establish a policy defining the terms and conditions under which a parcel of Land may be considered for exemption, and exempted from the assessment; NOW THEREFORE BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE DISTRICT THAT THE FOLLOWING POLICY IS ADOPTED: DONNER LAKE ASSESSMENT EXEMPTION POLICY A. COMMON AREA EXEMPTED FROM ASSESSMENT 1. A parcel of land within the Donner Lake Assessment District, which is or has been restricted such that it (i) meets the definition of "Common Area" as set forth herein, and (ii) meets the other requirements and conditions set forth herein, shall not be assessed by the Assessment District. 2. A parcel of land, sought to be exempted from the assessment, must be dedicated and restricted, pursuant to a declaration of covenants, conditions or restrictions, deed restriction or other declaration, in a form and content acceptable to District, enforceably setting forth that said parcel is and shall be dedicated and restricted so as to meet the definition of Common Area, as hereinafter defined. B. "COMMON AREA"DEFINED 1. Common Area shall be defined as any parcel of land that is owned and controlled, for the common use and enjoyment of association members, by a duly formed and existing homeowners' association or property owners' association, which association (i) is formally and duly organized as a nonprofit mutual benefit corporation, and (ii) consists of owners within a duly formed and existing association which contained not less than three (3) unimproved parcels at the time the association was formed. Common Area shall constitute and be defined by a declaration of restriction, made by the association owning and controlling said parcel or lot, and acceptable to District, specifying that (i) no professional nor commercial activities of any kind or nature shall be suffered, allowed or permitted, and (ii) no structures, buildings, improvements, water service (including irrigation purposes), or occupancy greater in scope than the list of permissible structures and uses set forth herein, as such list may be amended from time to time, shall be permitted. 2. Common Area shall be further defined to consist of a lot or parcel of real property which has a unique identity for tax purposes, such as its own Assessor's Parcel Number ("APN"), separate from other lots or parcels. The use of a Common Area shall not include any professional or commercial activity of any kind or nature, including rental of the Common Area to any person, group, or entity for any purpose. The use of a Common Area, and the improvements which may be made thereon, shall be limited to the following uses and improvements, none of which shall ever be connected to any water system nor require water service: (a) Paths or walkways for pedestrians, equestrians, and bicyclists, whether paved or unpaved, which shall not exceed six (6) feet in average width, and uses associated with such paths or walkways; (b) Picnic tables and uses associated therewith; (c) Security fences; (d) Steps leading to beach areas, and use of the Common Area for beach access and beach use; (e) Gazebos and other non-enclosed or partially enclosed structures, not exceeding 100 square feet in floor area, and uses associated with such structures; (t) Docks extending into Donner Lake, and uses associated therewith. (g) Paved or unpaved driveways and parking. C. APPLICATION FOR EXEMPTION 1. Any homeowners' association or property owners' association which (i) owns and controls a parcel, (ii) meets the aforementioned definitions and criteria, and (iii) desires to be exempt from the Levy of an assessment for a parcel which it owns or controls, shall make application to the General Manager of the District in the form and content approved by the General Manager. Said application shall include, at minimum: (i) a current preliminary title report as to each and every parcel of real property sought to be exempted, together with any and all items noted as an exception of record, as reflected by said preliminary title report; (ii) a copy of any recorded restriction then in existence meeting the aforementioned definitions and criteria; (iii) the proposed restrictions upon which the application is based; and (iv) such further documents as the General Manager may deem necessary or advisable for purpose of consideration of the application. The General Manager shall submit the matter to the Board of Directors for approval or rejection at a regular or special meeting. 2. Any approval by the Board of Directors of an application for exemption from assessment shall be subject to the further condition that each and every owner of record shall join in any declaration of restriction, or other instrument, restricting the parcel(s) as Common Area, as defined herein, and shall be accompanied by the joinder and/or consent of all lenders, mortgagees, beneficiaries under deed of trust and/or those persons or entities having a beneficial interest in the parcels sought to be exempted. Exemption from the assessment shall not be effective unless and until a declaration of restrictions, to District's satisfaction, is recorded and delivered to District. The costs of procuring said preliminary title report shall be borne in their entirety by the applicant. 3. The applicant shall allow periodic inspections of the parcel of property sought to be exempted by the District or other authorized agent from time to time upon District providing forty-eight (48)hours notice. D. REVOCATION OF EXEMPTION 1. In the event that any lot or parcel for which an exemption has been granted ceases to meet the definition of "Common Area" set forth in this Policy, as it may be amended from time to time, or structures are erected or uses made which are not included on the list of approved structures and uses, as it may be amended from time to time, the District may revoke any exemption from assessment granted to a parcel. 2. Prior to revoking an exemption from assessment, the District shall provide notice of the pending consideration of revocation to the owner of the affected lot or parcel, and an opportunity to be heard at the public hearing at which the District's Board of Directors shall consider revocation of the exemption.