12-10-08 Council Special Minutes

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MINUTES CITY COUNCIL DECEMBER 10, 2008 for needed improvements. The Administrator noted that the improvement project is the responsibility of the homeowner's association, and association members must want and support the project. If the HIA ordinance is approved, there will be a development agreement entered into between the City and the association to document issues of performance and relationship. The Administrator provided a brief summary of the HIA process. The first step is that a petition signed by 25% of association property owners must be submitted to the City to begin the process. This petition has been received. A public hearing is then held by the City Council to consider adoption of the ordinance creating the HIA -this is the hearing being held this evening. If the HIA ordinance is adopted, the association property owners will be notified by mail and will be sent a copy of the HIA ordinance. The property owners then have a 45 day period within which a petition can be submitted to the City vetoing the HIA ordinance. That petition must be signed by 35% of the condominium property owners. If no petition is received, the HIA ordinance becomes effective 45 days after adoption. The Administrator indicated that at that point the condominium ownership will have to decide the extent of the project and obtain bids for the work. Once the costs are known, a public hearing will be called relative to establishment of fees for the improvements. The Administrator explained how HIA financing works, noting that project costs will be determined by the association. The City will sell taxable bonds to finance the project costs, indicating that today's interest rates for taxable bonds are 6.40% fora 15 year bond issue and 6.85% for a 20 year bond issue. The fee assessments can be spread over a 20 year maximum. The Administrator further noted that there may be other condominium projects that can be combined together to achieve an economy of scale relative to bond/financing costs. He noted that the City will act as the paying agent for the project, paying contractor invoices after approval from the condominium association. The Administrator that fees for individual condo units will be determined by the condominium association and can be based on a number of factors, including a flat fee, type of unit, association rules, etc. The Administrator explained that once fees are assessed, condo owners will have 30 days within which to pay the fee in full or in part (minimum of 25%) without any interest. No prepayments will be allowed after that point given the City's need to repay the bonds that will be issued. The balance will be certified for collection with property taxes over the period of time determined by the association. 2