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HomeMy WebLinkAboutResolution - 2010-R0171 - Adoption Of Public Improvement District Policies And Guidelines - 04/08/2010Resolution No. 2010-RO171 April 8, 2010 Item No. 5.19 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Council hereby adopts the attached Public Improvement District Policies and Guidelines for the City of Lubbock. Said policy document is attached hereto and incorporated in this Resolution as if fully set forth herein and shall be included in the minutes of the Council. Passed by the City Council on Aril 8 , 2010. ey'4� �P� TOM MARTIN, MAYOR ATTEST: f Rebecc aarza, City Secretary APPROVED AS TO CONTENT: Rob Allis n, Assn Tht City Manager For Development Services APPROVED AS TO FORM: Linda L. Chamales, Economic DeN elopment Attorney City Att Linda: Res -Adopting PID Policies March 24, 2010 Resolution No. 2010-RO171 City of Lubbock, TX Finance Department Public Improvement District Policies and Guidelines April, 2010 A Public Improvement District (PID) is an assessment area established to provide for the enhancement of public improvements and services in the area. Cities are authorized to create a PID under Texas Local Government Code Chapter 372. A PID allows for enhanced improvements and a higher degree of maintenance for a specific area while placing the associated financial burden solely on the landowners who directly benefit from the improvements and/or services. The City Council must approve all petitions requesting establishment of new PIDs. These Policies are intended to aid the City Council in determining whether the creation of a PID is financially feasible, practical and in the best interest of the City. Proposed PIDs will be considered on a case-by-case basis. These Policies and Guidelines do not require the City Council to participate in PIDs, nor do they prevent the City Council from establishing PIDs with elements that vary from these Policies and Guidelines. I. General Policies a. PIDs may be utilized for residential, commercial, or mixed use developments when the City Council finds that a public purpose will be served. b. PIDs may only be used to serve or improve public property and may not be used to benefit or enhance private property. c. PIDs must be self-sufficient and not adversely impact the ordinary service delivery of the City, except where the City Council elects to participate in the project's costs. d. PID petitions must demonstrate the support of a high proportion of property owners. e. PID budgets must include sufficient funds to pay for all costs above and beyond the City's ordinary costs, including additional administrative and/or operational costs resulting from the PID. II. Specific Policies a. Priority of improvements within a PID will be considered as follows: 1. Improvements in the public right-of-way (e.g., entryways, landscaping, fountains, specialty lighting, streets and sidewalks); 2. Improvements which meet community needs (e.g., drainage improvements, parks, trails or other recreational amenities, and off-street parking facilities); and City of Lubbock, TX Finance Department Public Improvement District Policies and Guidelines April, 2010 3. Improvements related to operations and maintenance expense (e.g., sidewalk and street cleaning). b. Consideration may be given for PID improvements which require bond financing if the minimum project size for bond financing is greater than $20 million. c. Use of assessments for partial recovery of a developer's capital costs will be allowed only in special cases where extraordinary public benefit is shown. d. For a residential PID, preference will be placed on PIDs that establish a homeowners organization that states in its creation documents that it will assume all costs and responsibility of the PID in the event of the PIDs dissolution. e. The PID petition and service plan should contain procedures for the eventual termination of the PID without imposing unintended costs on the City. For example, if the PID includes improvements in the right-of-way, the PID budget should include funds which could be used at termination to remove, modify, or maintain the improvements. f. Administrative expenses, excluding PID start-up costs, shall not exceed 15% of the total budget in any year. g. An application fee of $5,000 will be required by the City for all proposed PIDs. The deposit is to be applied toward administrative costs related to the processing and review of the application, which may include staff time, public notices, etc. The City will track costs, and refund any excess monies once the PID has been established or denied. If additional funds are required to pay the costs incurred processing the application, the spokesperson for the PID will be notified. h. Anyone selling land in a PID must include a "title encumbrance" which notifies any prospective property owner of the existence or proposal of special assessments on the property. All closing statements must specify who is responsible for payment of the PID assessment on a pro rata share thereof. 2 City of Lubbock, TX Finance Department Public Improvement District Policies and Guidelines April, 2010 III. Guidelines a. Pre- Petition/Application Procedures 1. Proponents of a PID should meet with City staff to review a project to determine whether or not the requirements of the policies and guidelines have been satisfied. The deposit provided for in these guidelines shall be paid prior to commencing the review of the project. The review must take place prior to the presentation of a PID to the City Council. 2. When a proposed PID is presented to the City Council, it shall be accompanied by a report containing the findings and recommendations of City staff with regard to the proposed PID. City staff may require the proponents to furnish any information necessary for the evaluation of the proposed PID. 3. Where there are multiple proponents of a PID, they shall designate a spokesperson authorized to act for the proponents in their dealings with the City. The spokesperson shall be responsible for collecting any fees for deposit with the City, and for communicating as necessary with the proponents. b. Petition Requirements 1. Assurance of long-term backing and support from the developer. 2. Procedures outlining an annual public review of the service plan and budget items. 3. Evidence that the petition's signatures meet state law requirements. 4. Details of how the PID will fully fund City costs over and above those provided to the City in general, such as use of City personnel, data services, appraisal notifications and collection fees. 5. Contingency plan to address the maintenance or removal of PID improvements if the PID is dissolved. 6. Map of the area, description of the boundaries of the district for the legal notices, and a "commonly known" description of the area to be included in the PID. 3 City of Lubbock, TX Finance Department Public Improvement District Policies and Guidelines April, 2010 7. Description of procedures for the nomination of a PID Advisory Board which will recommend specific improvements and make recommendations to the City Council on the annual budget and long-term plans. 8. A section, which clearly identifies the benefit of the PID to the affected property owners and to the City as a whole. 9. Description of all City -owned land within the district. 10. A general description of the proposed improvements and/or services and who will determine those activities. 11. An estimate of the total cost of the improvements and/or services. 12. A PID operating budget listing the estimated operating costs, maintenance costs, and administrative costs. 13. The proposed method for assessment (per square foot, per lot, value based). 14. Documentation of adequate developer/contractor liability insurance regarding the construction of improvements. 15. Specified assurances to the City that the construction of improvements in the public right-of-way in no way obligates the City to future maintenance or operational costs. 16. Statement that the petitioners understand that the annual budget for the PID is subject to review by City staff with final approval by the City Council. 17. Identification of costs relating to establishing the PID, costs for maintenance, operations and administration, and costs for later revision, repair or replacement of any improvements. City of Lubbock, TX Finance Department Public Improvement District Policies and Guidelines April, 2010 c. PID Advisory Board Responsibilities 1. Management: The PID Advisory Board makes recommendations to the City Council on the service plan and other plans for the PID. 2. Advisory Board Membership: Each board will consist of a minimum of three members, but shall not have more than 9 members, as determined by the Bylaws adopted by the board and approved by the City Council. PID board members shall comply with all laws, policies and procedures set by Chapter 372 of the Texas Local Government Code, the City of Lubbock, and the PID Bylaws. If any advisory board member intentionally violates any of these laws, policies or procedures, the City Council may remove the member from the advisory board and appoint a replacement. 3. Meetings: Each PID is required to hold one property owner meeting each year in a public facility. The City will provide notice of the meeting to all PID property owners, and each PID will pay for such notification costs. The meeting agenda will include a presentation of the PID's plans for the coming year, the PID budget, and nomination of advisory board members. The advisory board may schedule other meetings as required and will notify the City PID liaison of their time and location. The City PID Liaison will post the meetings on the City website. 4. Bylaws: Each PID must adopt bylaws. The City will provide a template for the bylaws, and PID advisory boards may adapt portions of the bylaws as necessary. The City will review the bylaws before they are adopted and the bylaws will be presented to the City Council for approval. The PID advisory board may amend the bylaws as necessary, but the amended bylaws must also be approved by the City Council. 5. Operations: Improvements and maintenance authorized by the PIDs are supplemental to the general operations of the City and shall be paid entirely from district assessments. City of Lubbock, TX Finance Department Public Improvement District Policies and Guidelines April, 2010 6. Contracts: City staff will pursue annual contracts for maintenance, repair, and construction services where possible. All contracts will be reviewed and approved by the City Attorney's Office. Contracts in excess of the dollar threshold at which the City Manager, through the Purchasing Manager, may award City contracts require City Council approval 7. Fees and Permits: PIDs are considered governmental units and are required to pay fees and obtain permits. PIDs will pay the city government rate for all utilities and will pay through the interdepartmental billing system. PIDs must pay for meter fees, tap fees, and collection costs for the PID assessment. 8. Insurance: The PID advisory boards will acquire general liability, automobile liability, and errors and omissions insurance, such coverage to be paid for from PID assessments. Property insurance for valuable assets is optional and to be paid for from PID assessments. The insurance policies must be occurrence -based, not claim - based, and the City of Lubbock must be named as additional insured on all policies. The City of Lubbock will determine the appropriate level of insurance. The PID advisory board should consult its insurance advisor/agent to acquire insurance that meet those requirements. PIDs will pay their own deductibles. 9. Security: If any PID hires additional security, the security service must provide proof of adequate insurance, or the PID may hire off-duty police officers. d. City and City Staff Responsibilities 1. Collections: The City will contract with the Lubbock Central Appraisal District for the collection of current and delinquent PID assessments. Collection costs will be reimbursed from PID assessments. In the case of PID dissolution, PID assessments will continue until any and all debt obligations of the PID are paid in full. 2. Public Notices: The City will coordinate annual PID roll review and distribution of public notices and communications for the annual public hearing to adopt the assessment roll and rate, budget and service plan, and to appoint the advisory board. Costs will be reimbursed from PID assessments. 11 City of Lubbock, TX Finance Department Public Improvement District Policies and Guidelines April, 2010 3. Expenditures: The City will review PID expenditures and process payments. 4. Reporting: The City will account for each PID's assets, revenues, and expenses separately and reports will be provided to the PID advisory boards regularly. PID records are open to the public under the Texas Public Information Act codified in Texas Government Code at Chapter 552. 5. Contracts: City staff shall pursue annual contracts for maintenance, repair, and construction services where possible. All contracts will be reviewed and approved by the City Attorney's office. Contracts will be signed by the City Manager, through the Purchasing Manager. Contracts in excess of the dollar threshold at which the City Manager may award City contracts will require City Council approval. 6. Support: The City will provide support to the PID boards as needed and will orient new PID advisory board members to the role and responsibilities of the PID as needed. e. City Council Responsibilities: PID boards serve advisory functions, and all final decisions are made by the City Council. The City Council approves the annual budget, five year plan, assessment rate and roll, and contracts in excess of the dollar threshold at which the City Manager may award City contracts. f. City Liability The PIDs and PID advisory boards, performing the tasks of the PID that are authorized or mandated by the City, are authorized by the City to perform those tasks, and to the extent possible, are afforded the appropriate rights and protections of other City volunteers if they act strictly in accordance with City policies and procedures. PID advisory board members must obtain the advice of experts and have projects approved by City staff before construction begins. City staff will determine whether additional approvals by the City Council are also required.