If the City is going to pay Urban Logic exorbitant Fees then the City must collect exorbitant Fees from the Developers.
By: Libi Uremovic | Original Article at patch.com
Sales and Property Taxes are collected to provide Services to the Community such as the operations of City Hall, Police, Fire, Parks, Roadways, and Sewer Facilities.
Cities charge Mitigation Fees to pay for the constructions’ immediate impact to the community. Mitigation Fees include everything from plan check, surveying, and processing paperwork to constructing fire stations, sewers, and roadways.
The September 15, 2015 Council Meeting Agenda Item 4.f. is to pay Urban Logic another $180,000 in plan check and inspection fees. The City has already paid Urban Logic over $2 Million in the last year, mostly for services related to construction.
Urban Logic submits Invoices for plan check and surveying services that should be paid from Mitigation Fees, but the City does not collect Mitigation Fees. Michael Busche from Urban Futures stated to Council that the City was reimbursing Mitigation Fees.
On July 21, 2015 the Beaumont City Council Approved Mello Roos Bonds for Pardee Homes and Approved ‘credit’ for all Mitigation Fees along with additional Mello Roos Bond Debt.
Beaumont City Attorney Pinkeny told Council they ‘had to’ Agree to acquire Mello Roos Bond Debt for Pardee Homes. What Pinkney failed to consider is the State and Feds would not allow the City and Union Bank to continue felony municipal bond fraud.
Beaumont only has two (2) Bonds that are still trading. Most of their Bonds stopped trading by August 20th.
2015 Series A stopped trading on August 20th; Series B on July 30th, Series D on July 15th, and the 2015 Series D Bond never had a trade.
For a point of reference: The City of Beaumont’s 2001 Wastewater Bond stopped trading on October 1, 2014 and was Called on December 1, 2015.
The City of Beaumont’s General Fund has a deficit of $6 Million. The City can not continue to pay Urban Logic from the General Fund. There is no money in the Mitigation Fee Fund, and there will be no more Bond Funds to squander.
Pardee Homes requested the City keep Urban Logic to do their plan check and surveying work. It is up to Pardee to pay Urban Logic, not the City. If the City is going to pay Urban Logic exorbitant Fees then the City must collect exorbitant Fees from the Developers.
Pardee Homes is currently building the infrastructure and houses in Area 8, West of Highland Springs Ave, on the theory that they will be reimbursed with Bond Debt. Pardee needs to prepare themselves for the reality that they will have to recoup their expenses from the sale of the houses. Because Pardee has flooded the market they can not sell houses at a high enough price to recoup expenses. Too bad for them.
EXHIBIT “D” CITY FEE CREDITS
Property Owner shall receive credit against the following City Fees in the amount in effect at the time payment is otherwise required, subject to the provisions of Section 13 of this Agreement.
Fee Fee Credit Amount per EDU (as of 1/1/15)
Basic Services and Facilities $500.00
General Plan $50.00
Traffic Signal $180.10
Railroad Crossing $203.64
Fire Station $532.42
Emergency Preparedness $729.63
Road and Bridge $10,946.39
Regional Park $923.90
Regional Park – Multi Family DU $721.80
Regional Park – Age Restricted DU $519.70
Recycled Water $786.64
Sewer Capacity $3,194.45
Emergency Preparedness $229.63
Upper Potrero Sewer $251.66
Southern Trunk Main $90.15
Beaumont City Council Meeting July 21, 2015. Agenda Item 4.a. (pg. D.1): http://www.ci.beaumont.ca.us/DocumentCenter/View/26068