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HomeMy WebLinkAboutReso 88-17 Formation of a Comm Facilities Dist Dublin Crossing Dist 2017-1 RESOLUTION NO. 88 — 17 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN FORMATION OF A COMMUNITY FACILITIES DISTRICT, CONDITIONAL AUTHORIZATION TO LEVY A SPECIAL TAX, AND CONDITIONAL ESTABLISHMENT OF AN INITIAL APPROPRATIONS LIMIT FOR COMMUNITY FACILITIES DISTRICT NO. 2017-1 (DUBLIN CROSSING — PUBLIC SERVICES) WHEREAS, reference is made to the Resolution of Intention, Resolution No. 53-17 (the "Resolution of Intention") which was adopted by this City Council (this "City Council") on May 16, 2017, and to the Community Facilities District Report on file with the City Clerk of the City of Dublin (the "City Clerk"), for a description of (a) the boundary of the community facilities district proposed to be established pursuant to the Mello-Roos Community Facilities Act of 1982 (Sections 53311 and following, California Government Code; hereafter in this resolution, the "Act"), (b) the area proposed to be designated as future annexation area (the "Future Annexation Area") as provided by the Act, (c) the Authorized CFD Public Services (as defined in the Resolution of Intention), and (d) the rate and method of apportionment of the special tax proposed to be levied on the land within the community facilities district; and WHEREAS, in the Resolution of Intention, this City Council scheduled a public hearing with respect to these proceedings for this date, and, as evidenced by a proof of publication in file with the City Clerk, a notice of the public hearing was published as prescribed by the Resolution of Intention and in conformity with the Act; and WHEREAS, at the time set for the public hearing on this date, this City Council conducted the public hearing, and at the close of the public hearing determined that a majority protest under Section 53324 of the Act was not made at the hearing; and WHEREAS, this City Council wishes by this resolution (a) to declare the formation of the City of Dublin Community Facilities District No. 2017-1 (Dublin Crossing — Public Services) ("CFD No. 2017-1"), (b) to identify the Authorized CFD Public Services, (c) to provide for the future annexation of the Future Annexation Area in sequential portions, without additional hearing, as prescribed by the Act; and (d) subject to voter approval, to (i) authorize the levy of a special tax on the land within CFD No. 2017-1, (ii) provide the rate and method of apportionment of the special tax, and (iii) establish the initial annual appropriations limitation for CFD No. 2017-1, all as more fully set forth herein. NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Dublin hereby finds, determines and resolves as follows: Section 1. The foregoing recitals are true and correct, and this City Council hereby expressly so finds and determines. Section 2. There is hereby formed a community facilities district to be known as the City of Dublin Community Facilities District No. 2017-1 (Dublin Crossing — Public Services) ("CFD No. 2017- 1") under the terms of the Act. The boundaries of CFD No. 2017-1 and the Future Annexation Area are shown on the boundary map approved by the Resolution Approving Boundary Map, Resolution No. 51-17, adopted by this City Council on May 16, 2017, and recorded in the official records of the Alameda County Recorder on June 7, 2017, in Book 18 of Maps of Assessment and Community Facilities Districts, at page 81, as Document No. 2017124226 (the "Boundary Map"). Section 3. The Authorized CFD Public Services proposed to be financed, in whole or in part, by proceeds of the special tax (the "Special Tax") to be levied on the nonexempt property within CFD Reso No. 88-17, Adopted 6/20/2017, Item No. 6.1 Page 1 of 3 No. 2017-1 are described in the Exhibit A attached to this resolution and by this reference made a part hereof. This City Council hereby finds and determines that the Authorized CFD Public Services are necessary in order to finance the maintenance, operation, and lighting of landscaped streets and street medians within CFD No. 2017-1, as initially established and later expanded by annexation, and shall be authorized to finance any or all of the Authorized CFD Public Services regardless of geographic location of the Authorized CFD Public Services. Section 4. Except where funds are otherwise available, and subject to the voter approval required by the Act, the Special Tax is hereby authorized to be levied annually on all nonexempt parcels within CFD No. 2017-1, with the determination as to the first Fiscal Year in which the Special Tax will be levied upon the nonexempt parcels to be made in accordance with the provisions of the rate and method of apportionment of special tax ("RMA"). Upon recordation of (a) the initial notice of special tax lien pursuant to Section 3114.5 of the California Streets and Highways Code (the "S&H Code") or (b) an amendment to the notice of special tax lien pursuant to Section 3117.5 of the S&H Code as to each Future Annexation Area, a continuing lien to secure each levy of the Special Tax shall attach to all nonexempt real property within CFD No. 2017-1, and this lien shall continue in force and effect until the Special Tax obligation with respect to any parcel or all of the nonexempt real property is prepaid and permanently satisfied and the lien cancelled in accordance with law or until levy and collection of the Special Tax respecting any parcel or all of the nonexempt real property by the City ceases. Without limiting the generality of the foregoing, this City Council hereby approves the RMA, as set forth in Exhibit B, which will apply to all nonexempt real property within CFD No. 2017-1. Section 5. This City Council hereby finds and determines that the provisions of Sections 53313.6, 53313.7 and 53313.9 of the Act, which provide for an adjustment of ad valorem taxes relating to CFD-financed schools, are inapplicable to CFD No. 2017-1. Section 6. The types of incidental expenses which may be incurred and which are authorized to be paid from the proceeds of the Special Tax are set forth in Exhibit A attached to this resolution and by this reference made a part hereof. Section 7. This City Council hereby approves the establishment of the initial boundary of CFD No. 2017-1 as shown on the Boundary Map. Section 8. Advances of funds or contributions of work-in-kind from any lawful source, specifically including but not limited to the City or any owner of property within CFD No. 2017-1 or the Future Annexation Area, may be reimbursed from proceeds of the Special Tax, but any agreement to do so shall not constitute a debt or liability of the City, any member of the City Council or any other officer, employee or agent of the City. Section 9. The Director of Administrative Services of the City (the "Director of Administrative Services"), 100 Civic Plaza, Dublin, CA 94568, telephone (925) 833-6640, is hereby designated as the person responsible for preparing or causing the preparation annually of a current roll, of the amount of the Special Tax to be levied on each nonexempt parcel, identified by assessor's parcel number, and for responding to inquiries regarding estimates of future Special Tax levies. The City may contract with private consultants to provide this service in lieu of the Director of Administrative Services. Section 10. It is anticipated that the Special Tax will be billed as a separate line item on the regular property tax bill of the County of Alameda (the "County"). However, this City Council reserves the right, under Section 53340, to utilize any method of collecting the Special Tax which it shall, from time to time, determine to be in the best interests of the City, including, but not limited to, direct billing by the City to the property owners and supplemental billing. Reso No. 88-17, Adopted 6/20/2017, Item No. 6.1 Page 2 of 3 Section 11. Subject to the voter approval required by the Act, this City Council hereby establishes the initial annual appropriations limit for CFD No. 2017-1 at $25,000 for Fiscal Year 2017- 18. Section 12. On the basis of the information set forth in that certain certificate entitled "Certificate re Registered Voters" on file with the City Clerk and presented to this City Council, the qualified electors for the special election to be held in these proceedings shall be the landowners of the land within CFD No. 2017-1 in accordance with Section 53326 of the Act, which provides that each landowner shall be accorded one vote for each acre or portion of an acre owned. The election will be conducted as a mailed-ballot election, and this City Council hereby designates the City Clerk as the official to conduct the mailed-ballot election. Section 13. This City Council now finds and determines that all proceedings up to and including the adoption of this resolution were and are valid and in conformity with the requirements of the Act. This finding and determination is final and conclusive in accordance with Section 53325.1(b) of the Act. Section 14. This resolution shall take effect immediately upon its adoption. PASSED, APPROVED AND ADOPTED this 20th day of June 2017, by the following vote: AYES: Councilmembers Biddle, Gupta, Hernandez and Mayor Haubert NOES: ABSENT: Councilmember Goel ABSTAIN: Mayor ATTEST: ne fK fl City Clerk Reso No. 88-17, Adopted 6/20/2017, Item No. 6.1 Page 3 of 3 EXHIBIT A City of Dublin Community Facilities District No. 2017-1 (Dublin Crossing — Public Services) DESCRIPTION OF SERVICES The captioned Community Facilities District will finance, in whole or in part, the following services ("services" shall have the meaning given to that term in the Mello-Roos Community Facilities Act of 1982), including but not limited to: I. Landscape Maintenance Maintenance is limited to public landscaping within public street medians. Maintenance activities include regular trimming, weeding, irrigation, annual inspection of backflow preventer, and plant replacement when needed. 11. Street Lights Street light maintenance is limited to the public street lights within the CFD. Maintenance includes bulb replacement and knock-down repair. III. Utilities The CFD will include payment of recycled water service for irrigation and electrical services for both the irrigation controller and street lights. IV. Reserves The CFD will collect reserve funds for the eventual replacement of street lights, the backflow preventer, irrigation hardware, and landscape plant materials. V. Administration Administration includes City staff and consulting costs associated with the management and supervision of the CFD. These costs include the incidential expenses set forth below. Examples of such expenses include: management of landscape and street light maintenance contractors; annual reports and budget preparation in order to levy and collect the special tax, responding to property owner inquiries regarding the special tax, the administrative fee collected by the County to place the special tax on the tax roll, and other costs and expenses of the City related to administration of the CFD. Vl. Incidental Expenses • Engineering consulting services • Special tax consultant services • District staff and district general counsel review, oversight and administrative services • Special tax administration services • Publishing and mailing of notices • Recording fees • Governmental notification and filing fees The expenses of certain recurring services pertaining to the CFD may be included in each annual special tax levy, and these expenses are described in the RMA. The foregoing enumeration shall not be regarded as exclusive and shall be deemed to include any other incidental expenses of a like nature which may be incurred from time to time with respect to the CFD. EXHIBIT B City of Dublin Community Facilities District No. 2017-1 (Dublin Crossing -- Public Services) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX CITY OF DUBLIN COMMUNITY FACILITIES DISTRICT No.2017-1 (DUBLIN CROSSING-PUBLIC SERVICES) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX A Special Tax applicable to each Assessor's Parcel in the City of Dublin Community Facilities District No.2017-1 (Dublin Crossing-Public Services)shall be levied and collected according to the tax liability determined by the City or its designee,through the application of the appropriate amount or rate for Taxable Property,as described herein.All of the property in the CFD,unless exempted by law or by the provisions of Section F herein, shall be taxed for the purposes,to the extent, and in the manner herein provided, including property subsequently annexed to the CFD unless a separate rate and method of apportionment of Special Tax is adopted for the annexation area. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre"or"Acreage"means the land area of 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 parcel map recorded at the County Recorder's Office. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, (commencing with Section 53311),Part 1,Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses"means any or all of the following: the expenses of the City in carrying out its duties with respect to the CFD including, but not limited to, the levy and collection of the Special Tax,the review of any appeals by property owners,the fees and expenses of its legal counsel, charges levied by the County in connection with the levy and collection of the Special Tax, costs related to property owner inquiries regarding the Special Tax,and all other costs and expenses of the City and County in any way related to the administration of the CFD. "Administrator" shall mean the person or firm designated by the City to administer the Special Tax according to this RMA. "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 Map" means an official map of the County Assessor designating Parcels by Assessor's Parcel number. City of Dublin CFD No.2017-1 1 Alay 5,2017 "Authorized Services" means those services that are authorized to be funded by the CFD. "Building Permit" means a permit that allows for vertical construction of a Residential Unit or a building with multiple Residential Units, and shall not include a separate permit issued for construction of the foundation thereof. "CFD" or "CFD No. 2017-1" means City of Dublin Community Facilities District No. 2017-1 (Dublin Crossing—Public Services). "CFD Formation" means the date on which the Resolution of Formation to form the CFD was adopted by the City Council. "City"means the City of Dublin. "City Council"means the City Council of the City of Dublin,acting as the legislative body of CFD No. 2017-1. "County"means the County of Alameda. "Developed Property" means, in any Fiscal Year, all Parcels of Single Family Detached Property, Multi-Family Property,and Non-Residential Property for which a Building Permit was issued prior to June 30 of the preceding Fiscal Year. "Development Class"means, individually,Developed Property and Undeveloped Property. "Final Map" means a final map, or portion thereof, recorded by the County pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) that creates lots which do not need to be further subdivided prior to issuance of a building permit for a residential structure. The term"Final Map" shall not include any Assessor's Parcel map or subdivision map, or portion thereof, that does not create lots that are in their final configuration, including Assessor's Parcels that are designated as remainder parcels. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Future Annexation Area" means the geographic area that, at the time of CFD Formation, was considered potential annexation area for the CFD and which was, therefore, identified as "future annexation area" on the recorded CFD boundary map. Such designation does not mean that any or all of the Future Annexation Area will annex into the CFD,but should property designated as Future Annexation Area choose to annex, the annexation may be processed pursuant to the streamlined annexation procedures provided in the Act. "Homeowners Association" means the homeowners association, including any master or sub- association, that provides services to, and collects dues, fees, or charges from, property within the CFD. City of Dublin CFD No.2017-1 2 May S,2017 "Homeowners Association Property" means any property within the boundaries of the CFD that is owned in fee or by easement by the Homeowners Association, not including any such property that is located directly under a residential structure. "Maximum Special Tax" means the maximum Special Tax that can be levied on an Assessor's Parcel in any Fiscal Year determined in accordance with Section C below. "Multi-Family Property"means, in any Fiscal Year, all Parcels for which a Building Permit was issued for construction of a residential structure consisting of two or more Residential Units that share common walls. "Non-Residential Property" means, in any Fiscal Year, all Parcels of Developed Property within the boundaries of the CFD that are not Single Family Detached Property, Multi-Family Property, Homeowner Association Property, or Public Property,as defined herein. "Proportionately"means,for Developed Property,that the ratio of the actual Special Tax levied in any Fiscal Year to the Maximum Special Tax authorized to be levied in that Fiscal Year is equal for all Parcels of Developed Property.For Undeveloped Property,"Proportionately"means that the ratio of the actual Special Tax levied to the Maximum Special Tax authorized to be levied is equal for all Parcels of Undeveloped Property. "Public Property" means any property within the boundaries of the CFD that is owned by the federal government, State of California or other local governments or public agencies. "Residential Unit" means, for Single Family Detached Property, an individual single-family detached unit, and, for Multi-Family Property, an individual residential unit within a duplex, halfplex,triplex,fourplex,townhome, live/work or condominium structure,or apartment building. "RMA"means this Rate and Method of Apportionment of Special Tax. "Single Family Detached Property" means, in any Fiscal Year, all Parcels for which a Building Permit was issued for construction of a 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 of revenue needed in any Fiscal Year to pay for:(i) Authorized Services, (ii) Administrative Expenses, and (iii) amounts needed to cure any delinquencies in the payment of Special Taxes which have occurred in the prior Fiscal Year. In any Fiscal Year, the Special Tax Requirement shall be reduced by surplus amounts available (as determined by the City) from the levy of the Special Tax in prior Fiscal Years, including revenues from the collection of delinquent Special Taxes and associated penalties and interest. "Square Foot"or"Square Footage"means the square footage of a Residential Unit reflected on a Building Permit,condominium plan,site plan,or other such document.If the Square Footage shown on a site plan or condominium plan is inconsistent with the Square Footage reflected on the Building City of Dublin CFD No.2017-1 3 ]Play S,2017 Permit issued for construction of the Residential Unit,the Square Footage from the Building Permit shall be used to determine the appropriate Square Footage Category for the Residential Unit. "Square Footage Category" means one of the six different categories of Single Family Detached Property and Multi-Family Property set forth in Section C below. "Taxable Property"means all of the Assessor's Parcels within the boundaries of the CFD that are not exempt from the Special Tax pursuant to law or Section F below. "Unanimous Approval Form"means that form executed by the record owner of fee title to a Parcel or Parcels annexed into the CFD that constitutes the property owner's approval and unanimous vote in favor of annexing into the CFD and the levy of the Special Tax against his/her Parcel or Parcels pursuant to this RMA. "Undeveloped Property"means, in any Fiscal Year,all Parcels of Taxable Property that are not Developed Property. B. DATA FOR ADMINISTRATION OF SPECIAL.TAX Each Fiscal Year, the Administrator shall (i) categorize each Parcel of Taxable Property as Developed Property or Undeveloped Property, (ii) categorize each Parcel of Developed Property as Single Family Detached Property, Multi-Family Property, or Non-Residential Property, and (iii) determine the Special Tax Requirement. For Multi-Family Property,the number of Residential Units shall be determined by referencing the condominium plan, apartment plan, site plan or other development plan. In any Fiscal Year, if it is determined that: (i) a parcel map for property in the CFD was recorded after January 1 of the prior Fiscal Year (or any other date after which the Assessor will not incorporate the newly-created Parcels into the then current tax roll),(ii)because of the date the parcel map was recorded,the Assessor does not yet recognize the new Parcels created by the parcel map, and (iii) one or more of the newly-created parcels is in a different Development Class than other parcels created by the subdivision,the Administrator shall calculate the Special Tax for the property affected by recordation of the parcel map by determining the Special Tax that applies separately to the property within each Development Class, then applying the sum of the individual Special Taxes to the Parcel that was subdivided by recordation of the parcel map. C. MA2T1VI JM SPECIAL TAX 1. Developed Property The following maximum Special Tax rates shall apply to all Parcels of Developed Property within the CFD for each Fiscal Year in which the Special Tax is levied and collected: City ofDublfu CFD No.2017-1 4 hilly S,2017 TABLE I Developed Property Fiscal Year 2017-18 Maximum Special Taxes Maximum Square Footage Special Tax Land Use Category (Fiscal Year 2017-I8 Residential Units Single Family greater than 2,300 $57 per Detached Property Square Feet Residential Unit Residential Units Single Family 2,100 to 2,300 $53 per Detached Property Square Feet Residential Unit Residential Units Single Family less than 2,100 $49 per Detached Property Square Feet Residential Unit Residential Units Multi-Family greater than 1,800 $48 per Property Square Feet Residential Unit Residential Units Multi-Family 1,600 to 1,800 $43 per Property Square Feet Residential Unit Residential Units Multi-Family less than 1,600 $38 per Property Square Feet Residential Unit *On July 1,2018 and on each July 1 thereafter,the Maximum Special Taxes shown in Table 1 shall be increased by an amount equal to 4.0%of the amount in effect for the prior Fiscal Year. 2. Non-Residential Property The Maximum Special Tax for Parcels of Non-Residential Property in Fiscal Year 2017-18 is$1,600 per Acre, which shall be increased on July 1, 2018 and on each July 1 thereafter by an amount equal to 4.0%of the amount in effect for the prior Fiscal Year. 3. Undeveloped Property The Maximum Special Tax for Parcels of Undeveloped Property in Fiscal Year 2017-18 is $1,600 per Acre,which shall be increased on July 1,2018 and on each July 1 thereafter by an amount equal to 4.0% of the amount in effect for the prior Fiscal Year. D. MME:[HOD OF LEVY OF THE SPL,CIA.L TAX Each Fiscal Year,the Administrator shall determine the Special Tax Requirement to be collected in that Fiscal Year, A Special Tax shall then be levied according to the following steps: City of Dublin CFD No.2017-1 5 Alay 5,2017 i Step 1. The Special Tax shall be levied Proportionately on each Parcel of Developed Property,up to 100%of the Maximum Special Tax for each Parcel of Developed Property until the amount levied is equal to the Special Tax Requirement. Step 2. If additional revenue is needed after Step 1 to pay the Special Tax Requirement, the Special Tax shall be levied Proportionately on each Parcel of Undeveloped Property up to 100% of the Maximum Special Tax for each Parcel of Undeveloped Property. E. MANNER OF COLLECTION OF SPECIAL TAXES The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that the City may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner, and may collect delinquent Special Taxes through foreclosure or other available methods. The Special Tax may be levied in perpetuity. F. EXEMPTIONS Notwithstanding any other provision of this RMA,no Special Tax shall be levied on Homeowners Association Property or Public Property within the CFD. In addition,no Special Tax shall be levied on Parcels that(i) are designated as permanent open space or common space on which no structure is permitted to be constructed, (ii)are owned by a public utility for an unmanned facility,or(iii)are subject to an easement that precludes any other use on the Parcels. G. INTERPRETATION OF SPECTAI,TAX FORM L" The City reserves the right to make minor administrative and technical changes to this document that do not materially affect the rate and method of apportioning Special Taxes. In addition, the interpretation and application of any section of this document shall be left to the City's discretion. Interpretations may be made by the City by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this RMA. City of Dublin CFD No.2017-1 6 May S,2017