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HomeMy WebLinkAboutResolution 2017-010 N.C.S. 01/09/2017Resolution No. 2017 -010 N.C.S. of the City of Petaluma, California RESOLUTION DECLARING THE INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT 2016 -01 AND AUTHORIZE THE LEVY OF A SPECIAL TAX THEREIN TO FUND CERTAIN PUBLIC SERVICES FOR THE RIVERFRONT MIXED USED PROJECT CITY OF PETALUMA Community Facilities District No. 2016 -01 (Petaluma Riverfront) WHEREAS, under the Mello -Roos Community Facilities Act of 1982, as amended (the "Act "), Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing at Section 53311, of the California Government Code, this Council is authorized to establish a Community Facilities District and to act as the legislative body for such Community Facilities District; and WHEREAS, the City desires to proceed with the establishment of a Community Facilities District in order to finance the annual operation, maintenance and servicing, including repairs and replacement of parks, trails and recreational facilities, street and street lighting facilities, flood and storm protection facilities, stormwater treatment facilities, landscape corridors, wetlands and open space areas within the Petaluma Riverfront development project; and WHEREAS, on January 9, 2017, by Resolution No. 2017 -009 N.C.S., the Council adopted amended local goals and policies concerning the use of the Act; and WHEREAS, the Council having received petitions from ONE HUNDRED PERCENT (100 %) of the landowners in the proposed Community Facilities District requesting that the City initiate proceedings for the establishment of a Community Facilities District pursuant to the Act, for the purposes of paying the costs of services to be provided by the City pursuant to Sections 53313 and 53313.5 of the California Government Code that are necessary to meet increased demands placed upon the City as a result of the development of said real property ( "Property "), and agreeing to the services to be provided by the City and the costs incidental thereto; and WHEREAS, the City Clerk has certified that the petitions presented to the Council complies with the requirements of Sections 53318 and 53319 of the California Government Code. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Petaluma, as follows: Section 1. Acceptance of Petitions. The Petitions including Consent and Waivers of the landowners of the Property comprising the proposed CFD is hereby accepted and the Council hereby determines that the public convenience and necessity require proceedings be undertaken to authorize the establishment of the CFD pursuant to the Act. Resolution No. 2017 -010 N.C.S. Page 1 Section 2. Name of CFD. The name proposed for the Community Facilities District is the City of Petaluma Community Facilities District No. 2016 -01 (Petaluma Riverfront) (the "CFD "). Section 3. Boundaries Described. The proposed boundaries of the CFD are as shown on the map on file with the City Clerk, which boundaries are hereby preliminarily approved and to which map reference is hereby made for further particulars. The City Clerk is hereby directed to record, or cause to be recorded, said map of the boundaries of the CFD in the office of the County Recorder of Sonoma County within fifteen days of the date of adoption of this Resolution, but in any event at least fifteen days prior to the public hearing specified in Section 8 below. Section 4. Services. The type of services proposed to be funded by the CFD and pursuant to the Act shall consist of those items listed as Services (the "Services ") on Exhibit A attached hereto and hereby incorporated herein. Section 5. Special Tax. Except to the extent that funds are otherwise available to the CFD to pay for the Services, a special tax (the "Special Tax ") sufficient to pay the costs thereof, secured by recordation of a continuing lien against all nonexempt real property in the CFD, will be levied annually within the CFD in perpetuity, and collected in the same manner as ordinary ad valorem property taxes, or in such other manner as this Council or its designee shall determine, including direct billing of the affected property owners. The proposed rate and method of apportionment of the Special Tax among the parcels of real property within the CFD in sufficient detail to allow each landowner within the proposed CFD to estimate the maximum amount such owner will have to pay are described in Exhibit B attached hereto and hereby incorporated herein. Under no circumstances will the special tax to be levied against any parcel subject to the foregoing sentence be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within the CFD by more than 10 percent. As specified by the Act, for purposes of this paragraph, a parcel shall be considered "used for private residential purposes" not later than the date on which an occupancy permit for private residential use is issued. Section 6. Voting Procedure. The levy of the Special Tax shall be subject to the approval of the qualified electors of the CFD at a special election. The proposed voting procedure shall be by mailed or hand - delivered ballot among the landowners in the proposed CFD, with each owner having one vote for each acre or portion of an acre such owner owns in the CFD. The Council hereby determines that the Services are necessary to meet increased demands placed upon the City as the result of development occurring within the CFD. Section 7. CFD Public Hearing Report. The City's Director of Public Works and Utilities, as the officer having charge and control of the Services in and for the CFD, or the designee of such official, is hereby directed to study said proposed Services and to make, or cause to be made, and file with the City Clerk a report in writing ( "CFD Public Hearing Report") presenting the following information: (a) A description of the Services by type which will be required to adequately meet the needs of the CFD. (b) An estimate of the fair and reasonable cost of the Services including the cost of incidental expenses in connection therewith. The CFD Public Hearing Report shall be made a part of the record of the public hearing specified below. Resolution No. 2017 -010 N.C.S. Page 2 Section 8. Public Hearing. On February 27, 2017 at 7 p.m., or as soon as possible thereafter, in the City Council Chambers, located at 11 English Street, Petaluma, CA 94952, this Council, as legislative body for the CFD, will conduct a public hearing on the establishment of the CFD and consider and finally determine whether the public interest, convenience and necessity require the formation of the CFD and the levy of the Special Tax. Section 9. Notice of Hearing. The City Clerk is hereby directed to cause notice of the public hearing to be given by publication one time in a newspaper published in the area of the CFD. The publication shall be completed at least two weeks (14 days) before the date of the public hearing referenced in Section 8. The notice shall be substantially in the form specified in Section 53322 of the Act, with the form summarizing the provisions hereof hereby specifically approved. Under the power and authority conferred upon this Council by the Charter of said City. Resolution No. 2017 -010 N.C.S. Page 3 EXHIBIT A DESCRIPTION OF SERVICES TO BE FUNDED BY THE CFD CITY OF PETALUMA Community Facilities District No. 2016 -01 (Petaluma Riverfront) The types of services to be funded by the CFD ( "Services ") shall include the annual operation, maintenance and servicing, including repair and replacement of parks, trails and recreation facilities, street and street lighting facilities, flood and storm protection facilities, storm water treatment facilities, landscape corridors, wetlands and open space areas; security patrols, any incidental expenses authorized by the Act; and any other miscellaneous or incidental services identified by the City necessary to provide the described Services herein including the collection and accumulation of funds to pay for anticipated Service, future repairs and replacements and cost shortfalls. Resolution No. 2017 -010 N.C.S. Page 4 EXHIBIT B RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX CITY OF PETALUMA Community Facilities District No. 2016 -01 (Petaluma Riverfront) A Special Tax authorized under the Mello -Roos Community Facilities Act of 1982 applicable to the land in the Community Facilities District No. 2016 -01 (the "CFD ") of the City of Petaluma (the "City ") shall be levied and collected according to the tax liability determined by the City through the application of the appropriate amount or rate described herein. A. DEFINITIONS "Acre" means each acre of the land area making up an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable Final Map or other recorded County parcel map. "Act" means the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the actual or estimated costs incurred by the City to determine, levy and collect the Special Taxes, including the proportionate amount of the salaries and benefits of City employees whose duties are directly related to administration of the CFD and the fees of Special Tax levy administrator, other consultants, legal counsel, the costs of collecting installments of the Special Taxes upon the County tax rolls and any other incidental costs authorized by the Act. "Annual Escalation Factor" means an amount equal to the percentage increase during the preceding year in the Consumer Price Index for All Urban Consumers in the San Francisco - Oakland -San Jose metropolitan area (CPI -U), as published by the U.S. Department of Labor, Bureau of Labor Statistics, or if this index ceases publication, an equivalent index. "Annual Special Tax" means the annual Special Tax, determined in accordance with Section D below to be levied in the CFD in any Fiscal Year on any Assessor's Parcel. "Assessor's Parcel" or "Parcel" means a lot or parcel shown on an Assessor's Parcel Map with an assigned Assessor's Parcel number. "Assessor's Parcel Number" means, with respect to an Assessor's Parcel, that number assigned to such Assessor's Parcel by the County for purposes of identification. "Base Year" means the Fiscal Year ending June 30, 2018. "Building Permit" means a single permit or set of permits required to construct an entire structure. Resolution No. 2017 -010 N.C.S. Page 5 "CFD" or "CFD No. 2016 -01" means Community Facilities District No. 2016 -01 (Petaluma . _.. _iverfront) of the City of Petaluma. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining and providing for the levy and collection of the Special Tax. "City" means the City of Petaluma. "Council" means the City Council of the City of Petaluma, acting as the legislative body of the City and the CFD. "County" means the County of Sonoma, California. "County Assessor" means the Sonoma County Assessor. "Developed Property" means, in any Fiscal Year, all Assessor's Parcels in the CFD for which Building Permits have been issued on or prior to June 30 of the preceding Fiscal Year. These Assessor's Parcels can be classified into one of following groups: Single Family Detached, Single Family Attached, Multi- Family Residential, Retail / Other, Office, and Hotel / Motel. "Fiscal Year" means the period starting July 1 and ending the following June 30. "Hotel / Motel" means a Parcel designated by the County Assessor as having a hotel or motel land use. "Land Use Classification" means any of the classes listed in Section B(1). "Maximum Special Tax" means the greatest amount of Special Tax, determined in accordance with Sections B and C below that can be levied in the CFD in any Fiscal Year on any Assessor's Parcel. "Multi- Family Residential" means all Assessor Parcels of Developed Property for which a Building Permit has been issued for construction of a structure with more than one Residential Unit. This category includes but is not limited to apartment buildings, duplexes, triplexes, fourplexes and condominiums. "Nonresidential Building Area" means the "chargeable covered and enclosed space" as defined by California Government Code section 65995(b)(2) to be constructed on Retail / Other Property, Office Property and Hotel / Motel property. "Office Property" means all Assessor Parcels of Developed Property for which a Building Permit has been issued for the construction of general, professional and medical office construction. "Public Property" means any property within the boundaries of the CFD that is either (i) owned by the federal government, the State of California, the County, another public agency, or a private non - profit organization that owns and is responsible for conservation of open space areas or (ii) encumbered by an easement owned by any such public agency or private organization which easement makes the development of such property impractical. Resolution No. 2017 -010 N.C.S. Page 6 Notwithstanding the foregoing, a leasehold or other possessory interest in any such property which is subject to taxation pursuant to Section 53340.1 of the Act shall not constitute "Public Property." "Residential Unit" means each separate residential dwelling unit on an Assessor's Parcel that comprises an independent facility capable of conveyance or rental as distinct from adjacent residential dwelling units. An accessory residential dwelling unit that shares a Parcel with a Single Family Detached Residential Unit shall not be considered as a Residential Unit for the purposes of this RMA. "Retail / Other Property" means all Assessor Parcels of Developed Property for which a Building Permit has been issued for the construction of retail, commercial, and educational construction or other nonresidential construction and is not Hotel / Motel Property or Office Property. "RMA" means this Rate and Method of Apportionment of Special Tax. "Services" means the services authorized to be financed by the CFD as described in the Resolution of Intention for the CFD. "Single- Family Attached Property" means all Assessor Parcels of Developed Property for which a building permit has been issued for construction of a residential structure consisting of two or more Residential Units that share common walls, have separate Assessor's Parcel Numbers assigned to them (except for a duplex Residential Unit which may share an Assessor's Parcel Number with another duplex Residential Unit). "Single- Family Detached Property" means all Assessor Parcels of Developed Property for which a building permit has been issued for construction of a single - family Residential Unit that does not share a common wall with another Residential Unit. "Special Tax" means a Special Tax levied in any Fiscal Year to pay the Special Tax Requirement. "Special Tax Requirement" means the amount required in any Fiscal Year for the CFD to: 1) provide the Services; 2) pay for reasonable Administrative Expenses; 3) pay any amounts required to establish or replenish any reserve funds; and 4) cure any delinquencies in the payment of Special Taxes which have occurred in the prior Fiscal Year or pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year. "State" means the State of California. "Taxable Property" means any Assessor's Parcel that is not Tax - Exempt Property. "Tax- Exempt Property" means any Parcel within the CFD which is not Developed Property or Undeveloped Property, and includes Public Property. "Undeveloped Property" means any Assessor's Parcel which is not Tax - Exempt Property, and for which no building permit has been approved and issued by June 30 of the previous Fiscal Year. Resolution No. 2017 -010 N.C.S. Page 7 B. DETERMINATION OF MAXIMUM SPECIAL TAX The Maximum Special Tax shall be calculated as follows: 1. Classification of Parcels. Each Fiscal Year, using the Definitions above and the Parcel records of the County Assessor's Secured Tax Roll of July 1, the City shall cause each Parcel of land in the CFD to be classified as Developed Property, Undeveloped Property, or Tax - Exempt Property. The City shall cause all Developed Property to be further classified as Single Family Detached, Single Family Attached, Multi- Family, Retail /Other Property, Office Property and Hotel / Motel Property. 2. Assignment of Maximum Special Tax. Each Fiscal Year, the Base Year Maximum Tax shown below shall be escalated as specified in Section C, Annual Adjustment of Maximum Special Tax, to determine the Maximum Special Tax for the upcoming Fiscal Year for each Land Use Classification. Land Use Classification Base Year Maximum Tax Developed Single Family Detached $945 per Residential Unit Developed Single Family Attached $695 per Residential Unit Developed Multi- Family $472 per Residential Unit Developed Retail / Commercial Property $741 per 1,000 sq. ft. of nonresidential building sq. ft. or portion thereof Developed Office Property $875 per 1,000 sq. ft. of nonresidential building sq. ft. or portion thereof Developed Hotel / Motel Property $741 per 1,000 sq. ft. of nonresidential building sq. ft. or portion thereof Undeveloped Property $7,750 per acre or portion thereof Tax - Exempt Property $0 3. Conversion of a Tax - Exempt Property to a Taxable Property. If a Tax - Exempt Property is not needed for public use and is converted to a private use, it shall become subject to the Special Tax. 4. Multiple Land Use Classifications. In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Classification. The Maximum Special Tax that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Taxes that can be levied for all Land Use Classes located on that Assessor's Parcel. The CFD Administrator shall determine the allocation to each Land Use Classification. Resolution No. 2017 -010 N.C.S. Page 8 C. ANNUAL ADJUSTMENT OF MAXIMUM SPECIAL TAX Beginning in January 2018 and each January thereafter, the Maximum Special Tax shall be adjusted each fiscal year in an amount equal to the percentage increase during the preceding year in the Consumer Price Index for All Urban Consumers in the San Francisco-Oakland- San Jose metropolitan area (CPI -U), as published by the U.S. Department of Labor, Bureau of Labor Statistics, or if this index ceases publication, an equivalent index. Each annual adjustment of the Maximum Special Tax shall become effective for the following Fiscal Year. D. DETERMINATION OF THE ANNUAL SPECIAL TAX Commencing with the Base Year, and for each subsequent Fiscal Year, the Council shall determine the Special Tax Requirement and shall levy the Annual Special Tax on each Assessor's Parcel of Developed Property at up to one hundred percent of the applicable Maximum Special Tax to fund the Special Tax Requirement. If additional revenues are needed to meet the Special Tax Requirement, the Annual Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property up to one hundred percent of the Maximum Special Tax for Undeveloped Property. Under no circumstances will the Annual Special tax levied against any Assessor's Parcel of Developed Property increase by more than ten (10) percent as a consequence of delinquency or default by the owner of any other Assessor's Parcel within the CFD. Subject to the foregoing, the amount of Annual Special Tax levied upon any Developed Property and Undeveloped Property in any Fiscal Year shall not exceed the Maximum Special Tax for such Fiscal Year as computed herein. E. DURATION OF THE SPECIAL TAX Assessor's Parcels in the CFD shall remain subject to the Special Tax in perpetuity. If the Special Tax ceases to be levied, the City or its designee shall direct the County Recorder to record a Notice of Cessation of Special Tax. Such notice will state that the obligation to pay the Special Tax has ceased and that the lien imposed by the Notice of Special Tax Lien is extinguished. F. PREPAYMENT OF SPECIAL TAX Prepayment of the Special Tax is not authorized. G. APPEALS AND INTERPRETATION PROCEDURE Any property owner who feels that the portion of the Special Tax levied on the subject property is in error, may file a written appeal no later than April 10 of the Fiscal Year in which the levy occurred, with the Director of Public Works and Utilities or his or her designee, appealing the levy of the Special Tax on the subject property. The Director of Resolution No. 2017 -010 N.C.S. Page 9 Public Works and Utilities or his or her designee will promptly review the appeal, and, if necessary, meet with the applicant, and decide the merits of the appeal. If the findings of the Director of Public Works and Utilities or his or her designee verify that the Special Tax levied should be modified, the Special Tax levy for future Fiscal Years shall be corrected, and a credit against future Special Taxes shall be arranged, if applicable. Any overcharges shall be corrected solely by means of adjustments to future Special Tax levies; no cash refunds shall be made. Any dispute over the decision of the Director of Public Works and Utilities or his or her designee shall be referred to the City Manager and the decision of the City Manager shall be final and binding on all parties. Interpretation may be made by resolution of the Council for purposes of clarifying any vagueness or uncertainty as it relates to the application of the Special Tax rate, or application of the method of apportionment, or classification of properties or any definition applicable to the CFD. H. COLLECTION OF THE SPECIAL TAX The Special Tax shall be collected each year in the same manner and at the same time as ad valorem property taxes are collected and shall be subject to the same penalties and lien priorities in the case of delinquency as is provided for ad valorem taxes. The City shall cause the actions required above to be done for each Fiscal Year in a timely manner to assure that the schedule of the Special Taxes to be collected are received by the County Auditor for inclusion with billings for such ad valorem taxes for the applicable Fiscal Year. However, the CFD Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of the Agency or as otherwise determined appropriate by the CFD Administrator. Resolution No. 2017 -010 N.C.S. Page 10