Regular Meeting
05/20/25 06:00 PM
City Manager Department
Matthew Summers
Resolution
Doc ID: 5979
COUNCIL AGENDA ITEM
AGENDA MATTER:
ADOPTION OF RESOLUTION NO. _____-2025 - INTENTION TO DISESTABLISH PUBLIC IMPROVEMENT DISTRICT 81-1
EXECUTIVE SUMMARY:
The City Council established Public Improvement District 81-1 on December 7, 1981, to provide sewerage facilities. Given that the facilities have now been constructed, the District is no longer necessary and should be dissolved. The first step is to adopt a Resolution of Intention to Disestablish the District and the matter will then return to the City Council at the July 15, 2025 meeting for further action.
DISCUSSION:
A special annexation election was held on October 21, 1969. Property owners in the entire Section 7 area (which can be described as bounded to the north by the I-15 Freeway, to the south by Rimrock Road, to the west by Agarita Avenue, and to the east by Monterey Avenue) voted 87-70 in favor of being annexed into the City. Section 7 was divided into two separate areas that became known as East Section 7 (which can be described as bounded to the north by the I-15 Freeway, the south by Rimrock Road, the east by Monterey Avenue, and the west by Barstow Road) and West Section 7 (which can be described as bounded to the north by the I-15 Freeway, the south by Rimrock Road, the east by Barstow Road, and the west by Agarita Avenue).
In recognition that higher population densities existed in East Section 7, the City began public its infrastructure installation in that area. To start the process, the City asked that the property owners pay for the installation of City sewer mains by forming a public improvement district. Once the public infrastructure was installed in East Section 7, the City turned its focus to West Section 7. In 1980, the property owners in West Section 7 were asked to form a public improvement district to pay for the costs of installing City sewer facilities in West Section 7. As part of that request, a letter sent by the City to property owners on September 25, 1980, indicated and implied that the City would install off-site improvements in the West Section 7 area (including water line, gas line, curb/gutter, street, and drainage improvements) if the property owners voted in favor of implementing Public Improvement District No. 81-1 for the construction of sewer mains. Ultimately, the voters agreed and Public Improvement District No. 81- 1 was formed on December 7, 1981, which covered 174 parcels, and allowed for assessments to be levied against the parcels. After the formation of the West Side Section 7 Improvement District No. 87-1 failed, the City Council, acting in its capacity as the Redevelopment Agency, directed on February 2, 1987 that the City proceed only with installing only the center portion of all streets in the West Section 7 area.
The final payment made by West Section 7 property owners into the assessment district occurred in 1997. On July 1, 2013, the City Council adopted a resolution to account for over payments by property owners due to the reduced facilities that were not constructed by the City.
Given the District has constructed the required facilities, has no outstanding debts, and no remaining funds, it is appropriate to dissolve the District.
The City Council must first pass a resolution of intention to disestablish the District, which is attached as Exhibit A. Then, the resolution will be published and sent to affected property owners. The matter will return to the City Council at the July 15, 2025 meeting, where the Council can hear from any members Regular Meeting
05/20/25 06:00 PM
City Manager Department
Matthew Summers
Resolution
Doc ID: 5979
COUNCIL AGENDA ITEM
from the public as to the proposed dissolution. The City Council will then have the opportunity to vote to disestablish the District via resolution. The resolution will then be recorded against the properties within the District.
FISCAL IMPACT:
There is no financial impact for this item as the assessments have all been used for the required facilities.
RECOMMENDED ACTION:
Staff recommends the following actions:
1. Discuss and adopt the attached Resolution of Intention to Disestablish PID 81-1 (Resolution No. _____-2025.
2. Direct staff to move forward with the disestablishment procedures and schedule a public hearing for the July 15, 2025 City Council meeting.