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HomeMy WebLinkAboutAgenda Bill 06/25/2001 (8) fi i CITY OF PETALUMA, CALIFORNIA ' dir MEMORANDUM Community Development Department, 11 English Street,Petaluma, CA 94952 (707) 778-4314 Fax(707) 778-4498 E-mail:'inmooreteLpetaluma.ca.us DATE: June 25, 2001 TO: Fred Stouder, City Manager FROM: Mike Moore, Community Development Directo SUBJECT: Proposed Mello-Roos Special Tax Ordinance and Options for Financing Maintenance and Monitoring of the Adobe Creek Weir and Diversion Channel On Monday, June 18, 2001, the City Council introduced an ordinance that, if adopted, would enable the City to utilize a Mello=Roos special tax to finance a variety of public facilities and services, including the long-term maintenance and monitoring of the Adobe Creek weir and diversion channel. The use of a Mello-Roos special tax to fund the on-going maintenance and monitoring of the weir and diversion channel was anticipated by an agreement between the City and Mardel LLC (the developer of the Cross Creek subdivision) approved by the City Council and executed in March of this year. The ordinance was introduced by a 5-2 vote of the City Council. Under Section 45 of the:City Charter, if an ordinance is notintroduced by unanimous vote, the ordinance, or asuminary thereof as directed by the Council, must be published in the Argus-Courier at least 2`days prior to its adoption. Due to-the publishing schedule of the Argus- Courier, there was insufficient-time between the Council's action on June 18 and the scheduled adoption of the ordinance on June'25 to meet the charter requirement: Therefore, the adoption of the ordinance, which is listed as,a Consent Calendar item on tonight's agenda, cannot be acted upon and must be rescheduled to a subsequent agenda. As a result of this situation, and based on concerns expressed by some members of the Council at the June 18 hearing on the introduction of the ordinance, the Council has three options available to it: • Option A: The ordinance introduced on June 18 and published in the Argus-Courier as required by the Charter on Wednesday, July 4 (or Thursday, July 5, if they do not publish on the holiday) can be adopted at the Council meeting of Monday, July 9. This would result in the following subsequent actions: 1. The ordinance would become effective 30 days after the date of adoption (assuming it is adopted on July 9), or Wednesday, August 8, 2001. 2. Also on July9, the City Council would be asked to adopt a resolution of intent to hold a public hearing,and adopt a Mello-Roos special tax district for the 12 remaining homes in the Cross Creek subdivision. This hearing had been originally scheduled for the regular meeting of July 23, but cannot be held on this date because of'the delay in adopting the ordinance. 3. The Council must set a.special meeting for Thursday, August 9 in order to hold the public hearing necessary to establish the Mello-Roos special tax district for the 12 remaining homes in Cross Creek. ta,,,' The agreement between the City and Mardel LLC requires that the Mello-Roos special tax be established by A ugust 1, 2001 or Mardel's obligations under that section of the "°'r' agreement are waived. Mardel, as of today, has agreed.verbally to an extension of that provision to August 15, 2001. The City Attorney is presently working with Mardel's attorney to formally amend the agreement to the,August 15 date. 5. In order to collect any funds from the special tax district immediately, the special tax must approved and forwarded to the County before the 2001. tax rolls are equalized on August 10. If that does not occur, the City _would not collect any funds for the maintenance and monitoring of the weir and diversion channel until next,calendar year. Option B: The Council could choose not to adopt the ordinance introduced on,June 18 and instead follow the applicable provisions of state law and create a Mello-Roos,special tax district for the 12 remaining homes in Cross Creek. The City would not have the benefits of the ordinance (which are primarily the breadth and variety of facilities and services that can be • funded, and shorter time lines for establishing the special tax; and which cannot be enacted without:the approval Of City Council), but would still,be able to create a Mello-Roos special tax district for those 12 homes. This would-result in the following subsequent actions: 1: On July 9, the City Council would be asked to adopt a resolution,of intent to hold a public hearing and adopt a Mello-Roos special tax district-for the 12 remaining homes in the Cross Creek subdivision. 2. The Council'>must set a special meeting for Thursday, August 9 in order to hold the public hearing necessary to establish the Mello-Roos special tax district for the 12 remaining homes in;CrossCreek. State law.requires,30 days from the adoption of the resolution of intent before the public hearing to establish the district can be held. 3. The agreement between the City and Mardel LLC requires that the M Mello-Roos special tax be established by August 1, 2001 or Mardel's obligations under that section of the agreement are waived. Mardel, as of today, has agreed verbally to an extension of that provision to August 15, 2001. The City Attorney is presently working with Mardel's :attorney to formally amend,the%agreement to the,August 15 date. 4. In order to collect any funds from the special tax district immediately, the special tax must approved and forwarded,to the County before the 2001 tax rolls are'equalized on August 10. If that does not, occur, the City would not collect any funds for the maintenance and monitoring of the weir and diversion channel until next calendar year. . Option.3: The City Council could choose to not adopt the ordinance introduced on June 18 and could choose not to create a Mello-Roos special tax district under the provisions of state law. Under the terms of the agreement between,the,City and;Mardel, LLC, if the City took+no action by August 1, 2001,Mardel would be free of its obligation to support the creation of the Mello- Roos special tax district. In=the event that occurred, the City would have no financing mechanism readily'available"for.funding the,on-going.maintenance and monitoring of the Adobe Creek weir and diversion channel. The City Attorney and I are available to answer any questions you may have regarding these options. . c: Mayor and City Council Matt Hudson Doyle Heaton