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HomeMy WebLinkAboutResolution 2017-026 N.C.S. 02/27/2017Resolution No. 2017-026 N.C.S. of the City of Petaluma, California RESOLUTION TO FORM A COMMUNITY FACILITIES DISTRICT CITY OF PETALUMA Community Facilities District No. 2016-01 (Petaluma Riverfront) WHEREAS, on January 9, 2017, the City Council ("Council") of the City of Petaluma (the "City"), County of Sonoma, State of California, adopted Resolution No. 2017-010 N.C.S. entitled "Resolution of the City Council of the City of Petaluma Declaring Intention to Establish a Community Facilities District and Authorize the Levy of Special Taxes Therein" (the "Resolution of Intention") with respect to Community Facilities District No. 2016-01 (Petaluma Riverfront) (the "CFD") of the City pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing with Section 53311, of the California Government Code (the "Act'); and WHEREAS, the Resolution of Intention incorporates a map of the proposed boundaries of the CFD, states the services to be provided, the cost of providing such services and the rate and method of apportionment of the special tax to be levied within the CFD, and is on file with the City Clerk and the provisions thereof are incorporated herein by this reference as if fully set forth herein; and WHEREAS, the services to be provided as stated in the Resolution of Intention are set forth in Exhibit A attached hereto and hereby made a part hereof, and WHEREAS, notice of a public hearing relating to the establishment of the CFD, the extent of the CFD, the financing of certain types of services and all other related matters has been given, and a Public Hearing Report, as ordered by this Council, has been presented to this Council and has been made a part of the record of the hearing to establish such CFD, all pursuant to the Act and the Resolution of Intention relating to the proposed formation of the CFD; and WHEREAS, at the hearing all interested persons desiring to be heard on all matters pertaining to the formation of the CFD, the services to be provided therein and the levy of said special tax were heard and a full and fair hearing was held; and WHEREAS, written protests with respect to the formation of the CFD, the furnishing of specified types of services and the rate and method of apportionment of the special taxes have not been filed with the City Clerk by fifty percent (50%) or more of the registered voters residing within the territory of the CFD or property owners of one-half (1/2) or more of the area of land within the CFD and not exempt from the proposed special tax; and WHEREAS, the special tax proposed to be levied in the CFD to pay for the proposed services to be provided therein has not been eliminated by protest by fifty percent (50%) or more of the registered voters residing within the territory of the CFD or the owners of one-half (1/2) or more of the area of land within the CFD and not exempt from the special tax. Resolution No. 2017-026 N.C.S. Page 1 NOW, THEREFORE, BE IT RESOLVED, as follows: Section 1. Recitals Correct. The foregoing recitals are true and correct. Section 2. No Majority Protest. The proposed special tax to be levied within the CFD has not been precluded by majority protest pursuant to Section 53324 of the Act. Section 3. Prior Proceedings Valid. All prior proceedings taken by this Council in connection with the establishment of the CFD and the levy of the special tax have been duly considered and are hereby found and determined to be valid and in conformity with the Act. Section 4. Name of CFD. The community facilities district designated "Community Facilities District No. 2016-01 (Petaluma Riverfront)" of the City is hereby established pursuant to the Act. Section 5. Boundaries of CFD. The boundaries of the CFD are as set forth in the map of the CFD heretofore recorded in the Sonoma County Recorder's Office as follows: Book 784 of Maps of Assessment and Community Facilities Districts at Page 4. Section 6. Description of Services. The type of services proposed to be financed by the CFD and pursuant to the Act shall consist of those items listed as services (the "Services") in Exhibit A hereto and by this reference incorporated herein. Section 7. Public Hearing Report. The Public Hearing Report, as now submitted, shall stand as the Public Hearing Report for all future proceedings and all terms and contents are approved as set forth therein. Section 8. Special Tax. a. Except to the extent that funds are otherwise available to the CFD to pay for the Facilities and Services, a special tax (the "Special Tax") sufficient to pay the costs thereof, secured by the recordation of a continuing lien against all nonexempt real property in the CFD, is intended to be levied annually within the CFD, and collected in the same manner as ordinary ad valorem property taxes or in such other manner as may be prescribed by this Council. b. 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 shown in Exhibit B attached hereto and by this reference incorporated herein. Section 9. Responsible Official. The Director of Public Works and Utilities, located at 11 English Street, Petaluma, California 94952, telephone number (707) 778-4303, or his or her designee, will be responsible for preparing annually a current roll of special tax levy obligations by assessor's parcel number and who will be responsible for estimating future special tax levies pursuant to the Act. Resolution No. 2017-026 N.C.S. Page 2 Section 10. Special Tax Lien. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code of California, a continuing lien to secure each levy of the special tax shall attach to all nonexempt real property in the CFD and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the tax by the City ceases. Section 11. Election. Pursuant to the provisions of the Act, the proposition of the levy of the special tax specified above shall be submitted to the qualified electors of the CFD at an election the time, place and conditions of which election shall be as specified by a separate resolution of this Council. Section 12. Effective Date. This Resolution shall take effect upon its adoption. Under the power and authority conferred upon this Council by the Charter of said City. REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the as to Council of the City of Petaluma at a Regular meeting on the 27`h day of February, 2017, by the following vote: w City ttorney AYES: Albertson, Vice Mayor Barrett, Mayor Glass, Healy, Kearney, King, Miller NOES: None ABSENT: None ABSTAIN: None ATTEST: s;e& City ler i em Mayor Resolution No. 2017-026 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. 2017-026 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. 2017-026 N.C.S. Page 5 "CFD" or "CFD No. 2016-01" means Community Facilities District No. 2016-01 (Petaluma Riverfront) 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 Assessors 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. 2017-026 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. 2017-026 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. 2017-026 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, 2017-026 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 Director of Public Works and Utilities, the Council, and the decision of the Council 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, 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. 2017-026 N.C.S. Page 10