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HomeMy WebLinkAboutStaff Report 17 06/18/2001 CITY OF PETALUMA,.CALIFORNIA JUN 2OO 1 AGENDA BILL JUN • genda Title: Discussion and Possible Action Regarding the Meeting Date: June 18, 2001 troduction of an Ordinance Providing for the City of Petaluma Special Tax Procedure (Adobe:Creek Weir & Diversion Channel) _ Department: Director: Contact Person: Phone Number: Community Mike Moore' Mike Mooie (707) 778-4301 Development Cost of Proposal: Approximately $6000 Account Number: N/A Amount Budgeted: $0.00 (the cost of this item is being paid by Name of Fund: N/A Mardel LLC in accordance with an agreement with the City executed on April 20; 2001) Attachments to Agenda Packet Item: 1) Page 2, April 20, ,2001 Agreement..Regarding Weir and Diversion Channel between Mardel LLC and City of Petaluma 2) Draft Ordinance Summary Statement: In April of this year, the City Council approved the terms of an agreement between the City and Mardel LLC, the developer of the Cross Creek subdivision at the.northeast corner of Casa Grande Road and Ely Blvd. One of the terms of the agreement required Mardel to cooperate in establishing a financing echanism for the long-term maintenance and monitoring of the Adobe Creek Weir and Diversion. annel that was required by the City as part of the approval process for Cross Creek. The mechanism ailed for by the agreement (see attached excerpt Paragraph LA.) is a Mello-Roos special tax district that will apply to the final 12 lots of the.subdivision. Those honies"are now under.construction. The first step in applying the special tax to these 12 lots, is for the City to adopt an enabling ordinance establishing a "special tax procedure code". A special tax procedure e-code is available to the City because of its status as a charter city and in accordance with Sections 3, 5 and 7 and.Article,XL of the California Constitution. The attached ordinance would amend Petaluma Municipal Code Title 4 (Revenue and Finance) and establish Chapter 4.40 which will set forth "general provisions and definitions, powers and procedures for the purpose of providing financing for specified purposes "'The Council is tentatively scheduled to set the special tax for the final 12 homes at Cross Creek on July 23, 2001. The amount of the tax has already been established and is also included in. the terms of the agreement. According to Paragraph 1.A. vi. of the agreement, the special tax must be created on or before August I, 2001, or Mardel's ,obligation under Paragraph 1.A. shall terminate. Council Priority: THIS AGENDA ITEM IS'CONSIDERED To BE PART'OF, OR NECESSARY To, ONE OR MORE OF THE 1999-2000 PRIORTTIES ESTABLISHED BY TIM CITY COUNCIL ON JANUARY 30, 1999 AND MARCH 18, 2000. Priority(s): N/A Recommended'City'Council Action/Suggested Motion: Introduce the:attached ordinance. 'eviewed by Finance.Director: Reviewed by City Attorney: Approved by City Manager: • Date: Date: Date: .�.� ►t ■ Today's Date. Revision # and Date Revised: File Code: May 29, 2001 4-mtici ,vr e Therefore, City and.Mardel agree as follows: • 1 . Regarding the weir and bypass channel, the parties agree as follows: A. City agrees it shall have sole responsibility to maintain and'repair the weir and bypass channel. In order to assist City to fund its obligation under this subparagraph, Mardel agrees to cooperate fully with the City, to create a special tax district (under the Mello-Roos Facilities Act of 1982 or a similar charter city special tax,procedure.of the City, as determined by the City) including the 12 lots described in Exhibit A hereto, provided: i. City shall use the special tax solely for the maintenance orthe weir and bypass channel on Adobe Creek,which maintenance shall occur annually or at such other interval as deemed appropriate by the City for . adequate preservation of the weir and channel. ii. the initial special tax'shall not exceed the amount of $635:00 per lot per year-; the special tax shall be levied commencing in the fiscal year - 2001-2002; it shall increase (but not decrease) thereafter at the rate of the Consumer Price Index for San Francisco/Oakland/San Jose area (all urban consumers);and unless otherwise specified by the City, it shall be collected on the property tax rolls of the County of Sonoma., • iii. Mardel shall complete, execute and file such petitions, ballots; and other documents as are required by the City to complete the successful creation of the special`tax district not later than August 1 , 2001. iv. Mardel agrees to pay all costs of creating the special tax district and agrees to be solely responsible for'the disclosure of thespecial tax obligation to any initial purchasers of the 12 lots. v. provided City establishes the special tax district on or before August 1, 2001, as part of the proceedings for the special tax district, a). City and'Mardel agree to cause to be recorded against the title to each of the. 12 lots an appropriate notice of special tax lien, which recording shall take place not less than 10 days before;the close of any escrow between Mardel and any third party, notice of which escrow°.closing Mardel shall give to City at least 15 days before the anticipated date of closing, and b) 'Marcie! agrees that no escrow closing shall occur until the establishment of the special tax and the special tax lien has been recorded. vi. if City fails to create the special taxon or before August 1, 2001 , •. Mardel's obligation,under this paragraph 1 .A. shall terminate but the other provisions of this Agreement'shall remain in full force and effect. 030701 2 CJ v ORDINANCE NO. • AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA, STATE OF CALIFORNIA, AMENDING THE.PETALUMA.MUNICIPAL CODE BY ADDING CHAPTER 4.40 TO TITLE 4 THEREOF PROVIDING FOR,THE CITY OF PETALUMA SPECIAL'TAX PROCEDURE CODE,INCLUDING GENERAL PROVISIONS AND DEFINITIONS, POWERS AND PROCEDURES FOR THE PURPOSIIOIF PROVIDING FINANCING.FOR SPECIFIED PURPOSES, AND CERTAIN OTHER SUPPLEMENTAL PROVISIONS BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PETALUMA as follows: Section 1. Recitals: The,City'Council of the City of Petaluma does hereby find, determine and declare that (a) the City of Petaluma (the "City") is a municipal corporation and charter city duly organized and existing under a charter pursuant to.which the City has,the right and power to make and enforce all laws;and regulations in respect to municipal affairs and certain other matters in accordance with and as more particularly provided in Sections 3, 5 • and 7 of Article XI of the Constitution of the State of California and the Charter of the City(the "Charter"); and (b) the City Council of the City acting under and pursuant to the powers reserved to the City under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California and the Charter, finds that the public interest and necessity require the establishment by this procedural ordinance of a certain procedures relating to the maintenance and maintenance services by the City for the purpose of financing such maintenance and maintenance services as specified herein. Section 2. Amendment: The Petaluma Municipal Code is hereby amended by adding a chapter thereto, to be numbered Title 4,..Chapter 4.40; which chapter reads as follows: CHAPTER 4.40, TITLE 4 IHE CITY OF PETALUMA SPECIAL TAX PROCEDURE CODE Section 4.40.010. Short title. This ordinance shall be known and may be cited as the "City of Petaluma Special.Tax Procedure Code," and shall be referred taherein as the"Code"). Section 4.40.020. Municipal and State affairs; authority conferred by Code; applicability of laws. This Code is adopted pursuant to the Charter of the City of Petaluma. In • proceedings.had pursuant to this Code-which are a:municipal affair, any general laws referred to in this Code are deemed a part of this Code. r In the event that any proceeding had pursuant to this Code shall be adjudged astate affair, • it is declared to be the intention that the proceedings were had pursuant to any applicable general law or laws. This Code provides an alternative method of financing certain public and private capital facilities and municipal services. The provisions of this Code shall not affect or limit any other provisions of law authorizing or providing for the.furnishing of facilities or:services, or the raising of revenue for these purposes. The City may use the provisions of this Code instead of or in conjunction with.any'other method of financing part of all of the-cost,of providing the authorized kinds of public'and private capital facilities and municipal services. Section 4.40.030. Conflicting Provisions; Severability. Any provision in this Code which conflict's with any general law or act shall prevail over the other .such, provision in connection with any proceedings taken pursuant to this Code. In the event any portion of this Code shall be declared illegal, unenforceable, or unconstitutional, such provision shall be deemed severable from the rest of the provisions-of>this Code.. Section 4.40.040. Actions or Determinations; Proceedings.. The City Council may take any actions or make any determinations which it determines are necessary or convenient to carry`out the purposes of this Code and which are:not otherwise prohibited by law. Section 4.40:050. Purpose and Intent. The purpose and intent of this chapter-is to • establish a method whereby the facilities described in Section 4:40.170: (a) .hereof may be constructed, installed and/or maintained, and whereby the costs thereof maybe;-specially taxed to property;and to-establish a procedure whereby such special taxes may be collected. Section. 4.40.060. ,Compliance with Chapter. Any proceedings taken or assessment levied pursuant to this chapter shall notbe held invalid for failure to comply with the provisions of this chapter provided such failure is not a constitutional defect. Section '4.40.070. Necessary or Convenient Procedure Authorized. Any procedure not expressly set forth in this chapter but deemed necessary or convenient to,carry out any of its purposes is authorized. Section 4.40.080. Nonexclusiveness of Remedies. The remedies provided in this chapter for the enforcement of any assessment levied pursuant to this chapter are not exclusive, and additional remedies may be provided at any time: Section 4.40.090. Abandonment of Proceedings. Proceedings under this chapter may be abandoned at any time prior to the levy of special taxes. Section .4.40.100. Effect Upon Other Law. This chapter does not affect other law relating to the same or any similar subject, but provides an alternative authority and procedure for • the subject to which it relates. When proceeding under this chapter, its provisions only need be followed. _2_ • Section 4.40:110. Construction. This chapter is to be=liberally'construed . Section 4.40.120. Compliance. Any proceedings.taken.or special tax levied pursuant to this chapter shall not beheld invalid for failure to comply with the provisions of this Division provided such failure is not a.constitutional defect. Section 4.40.130. Special Taxes; Incorporation of the Mello-Roos Community Facilities Act of 1982. The Mello-Roos Community Facilities Act of 1982 (Chapter 25, commencing with Section 5331'1 of Part 1, Division 2, Title 5 of the California Government Code) (the "Act"), as amended from time to time, is incorporated in and made a part of this chapter. Except as otherwise provided by this chapter, the mode and manner of making facilities and for levying and collecting special taxes shall be as prescribed in the Act. It- is hereby specifically provided that in proceedings under this chapter exclusively for maintenance and/or services, the provisions of Section 53312.7 of the Act, relating to goals and policies, shall not apply. Section 4.40.140. Authority Applicable. Proceedings under this chapter shall be conducted under the authority contained in Section 4:40.130 for special taxes, which authority shall be designated in the resolution'of intention for such proceedings. Section 4.40:150. Alteration of Boundaries. The boundaries of any district created under this chapter may be altered from time to time in the manner provided in the designated authority or as otherwise may he provided by the Council in the resolution initiating proceedings for any such alteration. Section 4.40.160. Name and Nature. The name of any district created under this chapter shall be substantially as follows: "City of Petaluma, Special Tax District No _ ( )." A district created hereunder shall be deemed to be a financing district and not separate governmental agency, distinct"from the City. Section 4.40.170. Definitions. (a) Under this.•chapter, the term "facilities" shall include the installation, construction, plantingand/or'acquisition of any public.or private (1) landscaping, including trees, shrubs, flowers, groundcover, grass or other ornamental and/or erosion control or privacy or buffer vegetation, irrigation systems and controls, statuary, fountains, water features or other ornamental structures, fencing, soundwalls or other barriers, lighting facilities and related signage (2) streets, including any street, highway, road, alley, lane, • boulevard, pedestrian mall, parkway, bicycle or pedestrian path, trail, gutters, sidewalks with or without curbs and gutters, or other way dedicated to or used for travel and all appurtenances including medians, soundwalls, traffic signals:and warning devices, street signs and street lights; (3) parks, including recreational facilities, play fields, park or recreation"administrative or neighborhood community center facilities, open space, hiking • trails and access points;_ (4) sewer facilities, including drains, tunnels, sewers, conduits, culverts, and channels for drainage purposes; with necessary outlets, manholes, catch basins, flush tanks, septic tanks, disposal plants, connecting .sewers, ditches, drains, -3 - • conduits, channels, treated effluent dispersal sites and appurtenances;(5) flood control and • storm drainage facilities,,including, pipes, mains, channels, weirs, bulkheads, retention and detention. :basins, drop inlets, headwalls, dikes, levees, rip rap, vegetation and appurtenances; and (6) riparian habitat, including stream beds, vegetation and related features. (b) Under this chapter, the term "incidental expenses" shall include, together with any and all costs incidental to the creation of the district"or any annexation thereto, including costs of reports, publications,.notices, City staff; engineers attorneys, special tax consultants,and other required consultants, planning, designing, constructing or.acquiring the facilities, including any environmental evaluations and all costs and expenses incurred in connection with the administration of a district created pursuant to this chapter or with the enforcement of the duty of a property owner pursuant to this Code to maintain or repair:any improvement, including but not limited to compensation of any,attorney and/or consultant employed to render services in connection with such district or such enforcement proceedings. (c) Under this chapter, "services" shall include the repair, replacement or removal of any improvement; providing for the life, growth health and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing or treating for disease or injury, removal of debris, rubbish, trimmings, or other solid waste, cleaning, sandblasting and painting of'walls,or other facilities to remove graffiti , whether or not benefit assessments are utilized, any of which items may be necessary and/or convenient for the care and preservation of the facilities described in Section 4:40.170 (a) above, including, without limitation, any related studies, testing, monitoring, weed abatement, riparian:habitat restoration and/or preservation, dredging; desiltation and the removal of or remedial action for the cleanup of any hazardous' substance-released .or threatened to be released into the environment in or near any improvement. Section 4.40.180: Hearings. An y required hearing may be held not sooner than;15!days q from the date of the resolution ordering such hearing, upon not less than five days published notice. Any-published notice shall be sufficientnif°published one time in a newspaper of general circulation within'the City. Any notice'of hearing to be published may be in summary form with reference to documents on,file'in the office of the City Clerk for further information: Any hearing may be continued from nine to time without further notice, but shall be completed within one year ofthe`original,hearing date. Section 4.40.190: Installment Levy and Collection of Special Taxes. The City may, by resolution, determine that the estimated cost of the maintenance of any improvement authorized,under this chapter is greater than can be conveniently raised from the single'installment or imposition and order that the estimated cost,shall be raised by an assessment or special tax levied and collected in installments over such'period of time as may be set forth in that resolution. Special taxes may'be.collected upon the County tax roll or in any other suitable'manner prescribed. by resolution of the Council adopted during or after the proceedings; including direct billing to property owners or otherwise. • 4 • Section 4.40.200. Relief from Payment The Council may provide, by resolution, for relief from current special tax payments by senior citizens, persons and families of low-income or other classes of persons reasonably entitled, in the judgment of the Council, to such relief, by deferred payment until such time as the property is sold to persons not within the protected class, or otherwise. Section 4.40.210. :Limitation of Actions The validity of any initial assessment levied under this Ordinance shall not be contested in any action or proceedings, unless the action or proceeding is commenced within 30 days after any special tax is levied. The validity of any special tax levied after the first special tax may be contested only for the purpose of challenging the accuracy of computation of the,coniponent elements of the special tax formula or the validity of any change in the special tax formula made:under Section 4:40:140. Any appeal from a final judgment in the action or proceeding'shall be perfected within 30:days after the entry of judgment. Section 4.40.220. Appeals Procedures.. The Council may provide by separate resolution such appeals procedures as it may deem appropriate to facilitate;.the levy and enforcement of the assessments. Such procedures may provide for the appeal of confirmed assessments to the Director of Public Works or other official of the City responsible for the collection of special taxes and grounds upon and times within such appeals must-be-made. There shall be no appeal from the decision of the appointed official and the perfection of such an appeal shall be a . precondition to maintaining any action under-Section 4.40 210 hereof. • Section 4.40.230. Extra Territorial Jurisdiction. Special tax districts may be created under this chapter within the territorial jurisdiction of the City, or upon compliance with the procedures set forth in Section 5115' through 5118 of,Chapter 2 of Part 3 of Division 7 of the Streets and Highways Code, may extend beyond the territorial limits;of the City. Section 4.40.240. Joint Community Facilities Agreements. Any agreement by and between the City and anotherFpublic agency for the financing, ownership and/or operation and/or maintenance of any facility or the provision of any service may be entered into at any time at the determination of the City Council. Section 4.40.250. Qualified Electors. For purposes of any property-owner voter election, a public agency as owner of property, whether or not such property is leased, shall be deemed a qualified elector and entitled to vote. For purposes?. of determining electors, any property used primarily for hotel,or residential hotel purposes shall be deemed a commercial and a non-residential.use. Section 4.40/60 Elections. For purposes of any election herein, the unless otherwise waived by unanimous action of all qualified electors, the time for the conduct of the election shall be not less than 30 nor more than 120 days from the adoption of the Resolution of Formation or other resolution ordering such election. For purposes of any such election, the City Clerk shall be the election official responsible for conducting and canvassing such election. • Section 4.40.270. Special Tax Ordinance. The special tax ordinance may direct the Finance Director or other official of the City to annually prepare for and collect the special taxes according to the approved method of special tax apportionment without further annual action by -5- the Council, unless an increase in the maximum tax or other alteration of such method of • apportionment is sought. Section.4.40.280. Special Provisions for Leases. • (a) If a public agency owning property, including,property held in,trust for any beneficiary, which is otherwise exempt from a special tax grants a leasehold or other possessory interest in the property to a nonexempt person or entity, the special tax shall be levied on the leasehold or possessory interest and shall be payable by the owner of the leasehold or possessory interest. (b) When entering into a lease or other written contract creating a possessory interest that may be subject to taxation, pursuant to Subsection (a) of this. Section, the public agency shall include, or cause to be included, in the contract a statement that the property interest may be subject to special taxation pursuant to this chapter, and,that the party in whom the possessory interest is vested may be subject to the payment of special. taxes levied on the interest. Failure to comply with the requirements of this section shall not, however„invalidate the contract. (c) If the special tax on any possessory interest levied pursuant to Subsection (a) of-this section is unpaid when due, the tax collector may use those collection procedures which are available for the collection of assessments on the unsecured roll. Section 4:40.290: Refunding Bonds; Use of Savings. Bonds:may be issued hereunder • to refund any outstanding assessment bonds, whether fixed lien bonds or any other improvement or assessment bonds, including ad valorem assessment bonds. Any savings achieved through the issuance of refunding bonds maybe used by the Cityin any manner that it determines:to be in the best financial interests of the City. Section 3. Severability. If any section, subsection, sentence; clause or phrase or word of this ordinance is for any reason held to be unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of.Petaluma hereby declares, that it would have passed and ;adopted this ordinance and each and all provisions thereof irrespective of the fact.that any one or more of said provisions be declared unconstitutional. Section 4. Effective Date. This ordinance shall become effective and be in full force and effect from and after the expiration of thirty(30) days from the date of its final passage. ************** • -6- THIS ORDINANCE was introduced at a regular meeting of the City, Council of the City of Petaluma on , 2001, and was duly,adopted at a regular meeting of the City Council of the City of Petaluma on , 2001, by the following vote: AYES: Councilmembers: NOES: Councilmembers: ABSTAIN/ABSENT: Councilmembers: ATTEST: City Clerk • • - 7- Mailing List for Special Tax Procedure Ordinance: Matt Hudson Attorney at Law 6 Petaluma Blvd. North, #B-11 Petaluma, CA 94952 Doyle Heaton Delco Builders and Developers 2552 Stanwell'Drive, Suite 203 Concord, CA 94520 David Keller 1327 "I" Street Petaluma, CA 94952 Steve Block 19 Warrick Court Petaluma, CA 94954 • • •