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HomeMy WebLinkAboutItem 4.10 - 1388 CFD Resolution Declaring Intention to Consi Page 1 of 2 STAFF REPORT CITY COUNCIL DATE: April 4, 2017 TO: Honorable Mayor and City Councilmembers FROM: Christopher L. Foss, City Manager SUBJECT: Resolution Declaring Intention to Consider Authorizing Changes For Improvements Financed Through Community Facilities District 2015-1 Prepared by: Colleen Tribby, Director of Administrative Services EXECUTIVE SUMMARY: On June 2, 2015, the City Council adopted the Resolution of Formation (Reso 96 -15), establishing Community Facilities District (CFD) No. 2015-1 (Dublin Crossing). The new resolution proposed with this report would add language to Exhibit A of the Resolution of Formation that would preserve eligibility for financing the CFD any items which become the subject of a written agreement betwe en the Developer and the applicable public agency if such items are moved from the “fees” category to the “improvements” category (or vice versa), without the need to return to the City Council to undertake further change proceedings of this same technical nature. STAFF RECOMMENDATION: Adopt the Resolution Declaring Intention to Consider Authorizing Changes to the Capital Facilities and Capital Facilities Fees Which May Be Financed Under Prescribed Conditions. FINANCIAL IMPACT: None. DESCRIPTION: On June 2, 2015, the City Council adopted Resolution No. 96-15, a “Resolution of Formation,” by which CFD No. 2015-1 (Dublin Crossing) was established. The capital improvements and capital facility impact fees which are eligible for financing by special taxes and bond proceeds of CFD No. 2015-1 are set forth in Exhibit A to the Resolution of Formation (the “Existing Exhibit A”). The contents of Existing Exhibit A (Attachment 1 to this report) were derived from the Development Agreement respecting the developm ent of the land within CFD No. 2015- 1. Dublin Crossing, LLC, the developer of the project, and the City are currently in discussions which may result in an amendment to the Development Agreement to Page 2 of 2 provide that the Developer will build a City park which, a t the time of formation of CFD No. 2015-1 and as set forth in Existing Exhibit A, was to be built by the City with funding from CFD No. 2015-1 in the form of a “City-Imposed Impact Fee.” The sole purpose of these change proceedings is to add language to Existing Exhibit A, that will preserve eligibility for financing by the CFD for any items which become the subject of a written agreement between the Developer and the applicable public agency (the City, DSRSD or Zone 7) pursuant to which such items are moved from the “fees” category to the “improvements” category (or vice versa), without the need to return to this City Council to undertake further change proceedings of this same technical nature. Attachment 2 to this report is a Resolution that includes the new Exhibit A. No other changes to CFD No. 2015-1 are being made at this time. NOTICING REQUIREMENTS/PUBLIC OUTREACH: None. ATTACHMENTS: 1. Existing Exhibit A to Resolution 96-15 2. Resolution Declaring Intention to Consider Authorizing Changes; and Exhibit A EXHIBIT A DESCRIPTION OF AUTHORIZED CFD PUBLICIMPROVEMENTS A. City PublicCapital Improvements 1. BackboneStorm Drainage 2. Backbone Street Improvements 3. MasterLandscaping, Fencing and Signage on Public Property, Including Public Easements and Rights-of-Way B. City-Imposed Impact Fees 1. Fire Impact Fees 2. Freeway Interchange Fees 3. Public Art In-Lieu Fees 4. Residential Traffic Impact Fees—Eastern Dublin Fee 5. DevelopmentAgreement Fees: a. ACSPA Contribution b. Iron Horse Trail Bridge Contribution c. Park Construction Payment C. Dublin San Ramon Services District (DSRSD) 1. Capital Improvements a. Backbone Sanitary Sewer b. Backbone Domestic Water c. BackboneReclaimed Water 2. DSRSD Impact Fees a. Water System Connection Fees b. WaterMeter Assembly Fees c. Wastewater Impact Fees D. Zone 7 1. Capital Improvements a. Backbone Storm Drainage 2. Zone 7 Impact Fees a. Water Connection Fees b. Drainage Assessment Fees (Impervious Surface) A-1 Attachment 1 - Existing Exhibit A to Resolution 96-15 E. Private Utility Facilities 1. Natural Gas Distribution 2. Electrical Distribution 3. Telephone 4. Cable Television 5. Other Private Utility Facilities as Authorized by the Act A-2 RESOLUTION NO. _________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ********* DECLARING INTENTION TO CONSIDER AUTHORIZING CHANGES TO THE CAPITAL FACILITIES AND CAPITAL FACILITIES FEES WHICH MAY BE FINANCED UNDER PRESCRIBED CONDITIONS Community Facilities District No. 2015-1 (Dublin Crossing) WHEREAS, this City Council (this "City Council") of the City of Dublin (the "City") has, by its Resolution No. 96-15, adopted on June 2, 2015 (the “Resolution of Formation”), concluded its legal proceedings pursuant to the Mello-Roos Community Facilities Act of 1982 (Sections 53311 and following, California Government Code) (the “Act”) to establish a community facilities district known as “Community Facilities District No. 2015-1 (Dublin Crossing), City of Dublin, County of Alameda, State of California” (“CFD No. 2015-1”); and WHEREAS, CFD No. 2015-1 was established for the purpose of financing a portion of the cost and expense of certain authorized public and private utility capital improvements and certain authorized capital improvement fees (collectively, the “Authorized CFD Public Improvements”), together with related incidental expenses of the authorized capital improvements and the legal proceedings for formation of CFD No. 2015-1; and WHEREAS, the Authorized CFD Public Improvements are described in Exhibit A to the Resolution of Formation (“Existing Exhibit A”); and WHEREAS, the obligation to construct and install the capital improvements and to pay the capital facility fees described in Existing Exhibit A is imposed upon the developer of property within CFD No. 2015-1 pursuant to a Development Agreement, dated November 19, 2013 (the “Original Development Agreement”), between Dublin Crossing Venture LLC (the “Original Developer”) and the City; and WHEREAS, the Original Development Agreement has been twice amended, and all references hereafter in this resolution to the Development Agreement shall be deemed to refer to the Original Development Agreement, as amended from time to time. WHEREAS, Dublin Crossing, LLC (the “Developer”) has since succeeded the Original Developer to all of the rights, duties and obligations of the Original Developer under the Development Agreement pursuant to an assignment and assumption agreement, with the express written approval of the City Manager of the City; and 2 WHEREAS, the City and the Developer (the “Parties”) are in discussions to consider and may in the future have further discussions to consider certain changes to the obligations of the Developer under the Development Agreement or any other written agreement between the Parties with respect to the items listed in Existing Exhibit A as “City Public Capital Improvements” and “City-Imposed Impact Fees,” which discussions may lead to a written agreement between the Parties to (a) have the Developer construct all or a portion of the capital improvements which are to be financed with the corresponding impact fee, (b) have the Developer pay an impact fee to finance all or a portion of the corresponding capital improvement or (c) add or delete one or more items to the list of either “City Public Capital Improvements” or “City-Imposed Impact Fees” so as to make such items eligible (if added) or ineligible (if deleted) for financing by CFD No. 2015-1; and WHEREAS, with respect to the capital improvements and impact fees for Dublin San Ramon Services District (DSRSD) and Zone 7, as set forth in Item C (DSRSD) and Item D (Zone 7) of Existing Exhibit A, the Developer may in the future enter into one or more written agreements leading to changes to the respective items pertaining to DSRSD or Zone 7 as described in the foregoing recital paragraph pertaining to the City capital improvements and impact fees; and WHEREAS, Existing Exhibit A is proposed to be modified as set forth in Exhibit A to this Resolution (the “New Exhibit A”) so as to provide for the continued eligibility of items moved from one category (improvements or fees) to the other, for the eligibility of items added to either category, and for the ineligibility of items deleted from either category, in each case supported by a written agreement between the Developer and the affected public entity, without the requirement for further change proceedings by this City Council; and WHEREAS, the Act requires, as a condition to ordering the modification of Existing Exhibit A to read as set forth in the New Exhibit A, that proceedings for consideration of the proposed change be undertaken as prescribed by Section 53331 and 53334 through 53338, inclusive; WHEREAS, this City Council wishes by this Resolution to initiate the required proceedings to consider the proposed modification of Existing Exhibit A to read as set forth in the New Exhibit A. NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Dublin hereby finds, determines and resolves as follows: Section 1. In conformity with the provisions of Section 53331 of the Act, this City Council finds, determines and declares that the public convenience and necessity require the modification of Existing Exhibit A to read as set forth in New Exhibit A. Section 2. These change proceedings are being conducted with respect to CFD No. 2015-1. The territory included in CFD No. 2015-1 is all that certain real property within the boundary of CFD No. 2015-1 as shown on the boundary map (the “Boundary Map”) recorded on May 4, 2015, in Book 18 of Maps of Assessment and Community Facilities Districts, at page 61, as Document No 2015118036, in the official records of the County Recorder of the County of 3 Alameda, subject to addition to such territory by annexation from time to time of all or any portion of the property designated on the Boundary Map as “Future Annexation Area.” Section 3. The changes to Existing Exhibit A would not presently change the lists of items of either capital improvements or capital improvement fees eligible for financing by CFD No. 2015-1 but would, instead, retain eligibility for such financing if an item is moved, in whole or in part, from one list to the other and would further establish eligibility or ineligibility, as the case may be, for such financing for any item later added to or deleted from either list, as provided by any written agreement between the Developer and the affected public entity. Except for the changes to Existing Exhibit A as set forth in the New Exhibit A, no other changes are being made with respect to CFD No. 2015-1, including but not limited to any of the five separate instruments known as the “rate and method of apportionment of special tax,” set forth as Exhibits B through F, inclusive, of the Resolution of Formation. Section 4. This City Council hereby fixes Tuesday, May 16, at 7:00 p.m., or as soon thereafter as the matter may be heard, in the City Council Chamber in the Dublin Civic Center, 100 Civic Plaza, Dublin, California, as the date, time and place for a public hearing to consider the proposed change to Existing Exhibit A, which would authorize the modification of the lists of capital facilities and capital facilities fees eligible for financing by CFD No. 2015-1 under certain prescribed conditions. Section 5. In conformity with Section 53335 of the Act, the City Clerk is hereby authorized and directed to cause the publication of a notice of hearing, containing the matters specified by said Section 53335, one time in a newspaper in general circulation in the area of CFD No. 2015-1, said publication to occur no later than seven days prior to the date of the public hearing. In addition to published notice, the City Clerk is authorized to provide for mailed notice of hearing by first-class mail, postage prepaid, in accordance with Section 53322.4 of the Act, to each landowner within the boundary of CFD No. 2015-1, which mailed notice shall contain the same information as is required to be contained in the published notice. Section 6. This Resolution shall take effect immediately upon its adoption. PASSED, APPROVED AND ADOPTED this 4th day of April, 2017, by the following vote: AYES: Council Members ________________________________________ NOES: Council Members ________________________________________ ABSENT: Council Members ________________________________________ ABSTAIN: Council Members ________________________________________ ATTEST: ____________________________________ Mayor __________________________________ City Clerk A-1 EXHIBIT A DESCRIPTION OF AUTHORIZED CFD PUBLIC IMPROVEMENTS A. City Public Capital Improvements 1. Backbone Storm Drainage 2. Backbone Street Improvements 3. Master Landscaping, Fencing and Signage on Public Property, Including Public Easements and Rights-of-Way B. City-Imposed Impact Fees 1. Fire Impact Fees 2. Freeway Interchange Fees 3. Public Art In-Lieu Fees 4. Residential Traffic Impact Fees – Eastern Dublin Fee 5. Development Agreement Fees: a. ACSPA Contribution b. Iron Horse Trail Bridge Contribution c. Park Construction Payment C. Dublin San Ramon Services District (DSRSD) 1. Capital Improvements a. Backbone Sanitary Sewer b. Backbone Domestic Water c. Backbone Reclaimed Water 2. DSRSD Impact Fees a. Water System Connection Fees b. Water Meter Assembly Fees c. Wastewater Impact Fees D. Zone 7 1. Capital Improvements a. Backbone Storm Drainage 2. Zone 7 Impact Fees a. Water Connection Fees b. Drainage Assessment Fees (Impervious Surface) A-2 Notwithstanding the foregoing lists, in the event that Dublin Crossing, LLC, or any landowner of any portion of the land within CFD No. 2015-1 which is responsible for the construction of any of the listed improvements or payment of any of the listed fees enters into a written agreement with the City, DSRSD or Zone 7, as the case may be, to move all or any portion of any of the improvements or impact fees listed above from one category to the other, the subject improvements or impact fees shall remain eligible for financing by CFD No. 2015-1 without the requirement of City Council action to authorize such change. Without limiting the generality of the foregoing, if, for example, the City and Dublin Crossing, LLC (the “Parties”), enter into a written agreement (including but not limited to an agreement amending the Development Agreement between the Parties) pursuant to which the Parties agree that Dublin Crossing, LLC, will construct the City park referenced as Item B(5)(c) above, then that City park shall be eligible for financing by CFD No. 2015-1 as a City Public Capital Improvement. Similarly, in the event of a written agreement to add any additional improvements or impact fees to those listed shall make such improvements or impact fees eligible for financing by CFD No. 2015-1, and in the event of a written agreement to delete any improvements or impact fees from those listed shall make such improvements or impact fees ineligible for such financing, in each case without the requirement of City Council action to authorize such change. 2795871.1