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Home My WebLink About7.1 East Ranch Community Facilities Districts Revised ProposalIP Slt DUBLIN CALIFORNIA STAFF REPORT CITY COUNCIL Agenda Item 7.1 DATE: .Line 20, 2023 TO: Honorable Mayor and City Councilmembers FROM: Linda Smith, City Manager SU B.ECT: East Ranch Community Facilities Districts Revised Proposal Prepared by: Kan Xu, Senior Civil Engineer EXECUTIVE SUMMARY: On April 18, 2023, the City Council provided feedback to the Applicant, TH East Ranch Dublin, LLC (Trumark Homes), on their request to form Community Facilities Districts (CFDs) to finance the maintenance of and construction of public improvements within the East Ranch development project. The Applicant has revised their proposal for consideration by the City Council. The City Council will receive a presentation from the Applicant and provide feedback regarding the revised CFD proposals. No formal action will be taken, nor will approvals be granted, for the project at this meeting. STAFF RECOMMENDATION: Receive the presentation and provide feedback on the Applicant's revised proposal for the formation of Community Facilities Districts to fund the maintenance of and the construction of certain public facilities. FINANCIAL IMPACT: All costs associated with processing this request are borne by the Applicant. DESCRIPTION: Background The 165.5-acre East Ranch development project site is an undeveloped parcel located within the Fallon Village area of the Eastern Dublin Specific Plan (EDSP). The site is located north of Interstate 580, east of Fallon Road and the Jordan Ranch development, south of the Positano development, and adjacent to the City's eastern boundary, as shown in Figure 1 below. The project site generally increases in elevation from south to north with knolls and hilly terrain in the northeastern portion of the site. Page 1 of 4 360 Figure 1. Vicinity Map . ALLONL SPORTS PARK+` JJORDAN'. J RANCHO a FALLON!, GATEWAY +F On April 18, 2023, the City Council received a presentation from TH East Ranch Dublin, LLC (Applicant) and provided feedback on an affordable housing proposal and the formation of a Community Facilities District to fund maintenance of public streets, two public parks, and the storm drain systems within the Project (Services CFD) and a Community Facilities District to fund the acquisition and construction of certain public infrastructure and development impact fees associated with the Project (Facilities CFD). The City Council expressed general support for the affordable housing proposal and Staff is currently working on drafting the Affordable Housing Agreement for City Council's approval at a future meeting. Regarding the formation of the CFDs, the City Council was generally in support of the Services CFD; however, the City Council did not support the formation of the Facilities CFD in its previously proposed form. Current Request The Applicant has revised their proposal for the formation of the Services CFD for maintenance and the Facilities CFD to fund construction of various public infrastructure. Services CFD The revised Services CFD will fund maintenance of the public streets and the storm drain systems within the East Ranch development. The two public parks were removed from the revised Services CFD proposal, which means that assessments will not be collected for the City's maintenance of those two parks. Based on the City's current maintenance costs for similar items remaining in the revised Services Page 2 of 4 361 CFD proposal, contingency, and administration costs, the revised proposed assessment on each unit within the district is approximately $381 per year for maintenance of public infrastructure (Attachment 1). The adjusted property tax, including the Services CFD, will total approximately 1.39% of the home price. Facilities CFD The Applicant is also requesting the City Council's consideration of the revised Facilities CFD to fund construction of certain public infrastructure and development impact fees associated with the Project, including grading, street improvements, public parks, storm drain, water, and sewer facilities. The inclusion of water and sewer facilities within the Facilities CFD will require a separate Joint Community Facilities Agreement between the Applicant, the City, and Dublin San Ramon Services District. Of specific note, the Applicant does not have any obligation to make improvements to the two neighborhood parks in the project. The obligation is to pay a certain amount in fees for future park improvements. This amount is about $4.7 million in today's dollars, while the cost to improve both parks is in excess of $11 million based on recent park improvements. Staff and the Applicant believe that such improvements to the park will benefit the community and surrounding neighborhoods. To absorb this additional cost, the Applicant will require a Facilities CFD to offset some of its capital costs in other areas of the project. In summary, if the City Council approves a Facilities CFD, the Applicant will commit to making park improvements. Without the Facilities CFD, the two park sites will likely sit undeveloped for several years. The Applicant's proposed annual CFD special tax rate (Services CFD and Facilities CFD), when combined with all other property taxes would, on average, equal approximately 1.58% of the estimated home price. The bonding capacity of the Facilities CFD is estimated to yield approximately $26.95 million in net proceeds based on the special tax rate, assuming annual escalation of 2% per year and an interest rate on the bonds of 5.50% (net of typical costs for underwriter discount, reserve funds, capitalized interest, and incidental expenses). The facilities component of the proposed CFD would be structured to consist of six special tax zones, one for each of the various lot/product types, as shown in the following table. Zone # Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 Zone 6 Product Type 65' x 100' lots 55' x 95' lots 50' x 110' lots 49.5' x 80' lots Cluster lots Townhome units ENVIRONMENTAL REVIEW : Annual Special Tax (per unit) $5,543 $4,153 $4,406 $3,398 $2,886 $1,395 The City Council is receiving a presentation and providing feedback on the formation of a Services CFD and a Facilities CFD and no formal action will be taken at this time. This discussion is not subject to the requirements of the California Environmental Quality Act (CEQA) as it does not have Page 3 of 4 362 the potential to result in a direct physical change in the environment or a reasonably foreseeable indirect change in the environment and, thus, does not meet the definition of a project under CEQA Guidelines Section 15378. STRATEGIC PLAN INITIATIVE: Strategy 3: Infrastructure Maintenance and Reinvestment Objective D: Explore use of funding mechanisms like community facilities districts for capital and ongoing maintenance needs. NOTICING REQUIREMENTS/PUBLIC OUTREACH: A copy of this Staff Report was provided to the Applicant and the City Council Agenda was posted. ATTACHMENTS: 1) Maintenance Cost Estimate 2) DPFG Financing Memo, dated June 5, 2023 Page 4 of 4 363 Attachment I Maintenance Item Exhibit C Trumark - Croak Property Maintenance Cost Estimates 6/5/2023 Description of Use Unit Quantity Unit Price Estimate Street A Public Road Miles 0.3404 $5,158 $ 1,756 Street B Public Road Miles 0.3775 $5,158 $ 1,947 Neighborhood 1 - Streets Public Road Miles 0.7426 $5,158 $ 3,830 Neighborhood 2 - Streets Public Road Miles 0.7853 $5,158 $ 4,050 Neighborhood 3 - Streets Public Road Miles 0.4652 $5,158 $ 2,400 Neighborhood 4 - Streets Public Road Miles 0.6210 $5,158 $ 3,203 Neighborhood 5 - Streets Public Road Miles 0.4750 $5,158 $ 2,450 Neighborhood 6 - Streets Public Road Miles 0.4680 $5,158 $ 2,414 Slurry & Base Repair Public Road SF 813,495 $0.21 $ 168,800 Subtotal $ 190,851 Contingency and Administration Costs Contingency and Repair/Replacement (10%) City Administration County Administration (1.7%) Subtotal Contingency and Admin Costs Total Project Annual Maintenance Cost Summary Subtotal Annual Maintenance Subtotal Contingency and Admin Costs Total Annual Maintenance Costs Footnotes: [1] Per Unit estimate does not include AMI units. $ 2,205 $ 15,000 $ 3,244 $ 20,450 $ 190,851 $ 20,450 $ 211,300 Per Unit [ 1 ] $ 381 Prepared by DPFG 6/5/20: 364 Attachment 2 DDG DEVELOPMENT PLANNING a F1Hd,HCUNG GIRUEIP Memorandum To: City of Dublin From: DPFG Date: June 5, 2023 Subject: Croak Ranch CFD Formation Proposal Per the request of our client, Trumark Homes, we have prepared this memo to provide background information and discuss a proposal for the formation of a Community Facilities District ("CFD") for The Croak Ranch project (the "Project"). A. Backeround and Assumptions: The Project is within the City of Dublin ("city") Eastern Dublin Specific Plan. The Project is a 165.5-acre site with a 573-unit residential project consisting of six neighborhoods, two neighborhood parks totaling 11.5 acres, and a two -acre Public/Semi-Public site reserved for affordable housing located on Croak Road east of Fallon Road. The project site straddles existing Croak Road with Jordan Ranch to the west, Positano to the north and undeveloped land to the east and south with the Interstate 580 beyond. B. Summary of CFD Formation Deal Points: 1. As part of the conditions of approval for Tract Map 8563, the Croak project was conditioned to agree to form a Community Facilities District (CFD), with the City as the lead agency, pursuant to the provisions of California Government Sections 53311 et seq., for the purpose of financing the maintenance, acquisition, and/or construction of certain public improvements on the Property if Developer is in agreement with the Rate, Method of Apportionment and manner of Collection of Special tax ("RMA") as it relates to the Property. There may be potential to enter into a Joint Community Facilities Agreement ("JCFA") with other local agencies to potentially finance other eligible facilities and/or fees. 2. The infrastructure component of the proposed CFD would be structured to consist of six (6) special tax zones, one for each of the various lot/product types. • Zone 1 - 65'x1OO' lots — $5,543 annual special tax • Zone 2 - 55'x95' lots — $4,153 annual special tax • Zone 3 - 5O'x11O' lots — $4,406 annual special tax • Zone 4 — 49.5'x8O' lots — $3,398 annual special tax • Zone 5 — Cluster lots — $2,886 annual special tax • Zone 6 — Townhome units — $1,395 annual special tax Assumes affordable units will not be subject to the special tax. 3. The bonding capacity for the Project is currently estimated to yield approximately $26.9 million in net proceeds. The preliminary bond sizing is described in further detail in Exhibit A. 4. The annual CFD special tax rate, when combined with all other property taxes would, on average, equal approximately 1.58% of estimated home prices. The Project tax rate analysis is described in further detail in Exhibit B. The analysis assumes as a condition of the Project, a project specific maintenance CFD will be formed. The maintenance CFD will be formed concurrently as part of this CFD. Current maintenance projections can be found in Exhibit C. The analysis also assumes the Project will be in a GHAD. ► 2281 Lava Ridge Ct. Ste 340, Roseville CA, 95678 ► 916.480.0305 ► DPFG.com 365 Croak Ranch CFD Formation Summary Proposal 5. The CFD would be authorized to fund the construction of certain public improvements/fees identified in Exhibit D. 6. For modeling purposes, it was assumed that the annual special taxes would escalate at 2% per year and the interest rate on the bonds was assumed at 5.50% and net of typical costs for underwriter discount, reserve funds, capitalized interest, and incidental expenses. 7. It is proposed the term of the bonds to be 30 years. 8. The CFD could be structured to include improvement areas based upon project phasing and absorption. 9. The CFD could be structured to include a transition event, whereby when the special tax has funded all the obligations funded by the facilities special tax, the special tax would convert to a services special tax in perpetuity at a reduced rate. The intent would be to reduce/defer repair and replacement costs on the proposed services special tax. 10. It is proposed the concept of remainder taxes, which is the balance of taxes collected, beyond the total facilities special taxes collected on developed property during the first 20 fiscal years, to be used on a pay -go basis to fund eligible facilities and fees. 11. The rate and method of apportionment would include a provision for the City to receive funding for priority administration. It is proposed the City would receive $25,000 annually to cover CFD related administration costs. 12. Developer requests that bonds are structured to maximize both the term and debt service to maximizes bond proceeds. 13. The rate and method of apportionment (RMA) would include a provision permitting full and/or partial prepayment of the special taxes at any time for any number of assessor's parcels. 14. The actual amount of the CFD bonds to be issued is expected to be a function of the project's appraised value, and CFD special tax revenue. The bonds would be anticipated to be issued when the value -to -lien ratio is met for the Project. 15. Developer and DPFG are prepared to work with the City and its consultant team as expeditiously as practicable to complete formation of the CFD. Commencement of the CFD formation is required per the conditions of approval, prior to Large Lot Final Map which is currently in final stages of City approval. An example timeline to get the CFD formed, and bonds issued can be reviewed on Exhibit E. 1 of 2 366 LAND USE INFORMATION Exhibit A Croak Property CFD Formation Proposal CFD Bond Sizing and Estimated Annual Bond Debt Service 1.57% Minimum Maintenance Requirement & 7 Additional AMI Units (N6) TOTAL TAX RATE ANALYSIS BOND SIZING ANALYSIS Ad Other Charges, Proposed Total Estimated Valorem Assessment CFD Total Total Proposed Home Tax Rate and Special Tax per Tax per Tax CFD Lot Size Units Plan Size Price 1.2626% Taxes Unit Unit Rate Revenues Escalating (a) (b) (c) (d) Special Tax (2%) Total Proiect Buildout Total Proposed Annual CFD Revenue $2,016,050 Priority Admin ($25,000) Net annual revenue $1,991,050 N165x100 99 3,800 $ 2,505,494 $ 31,634 $ 2,409 $ 5,543 $ 39,587 1.58% $ 548,784 (AMI) N165x100 2 3,800 471,927 5,959 2,028 - 7,987 1.69% N2 55x95 96 3,500 2,067,520 26,105 2,409 4,153 32,667 1.58% 398,701 (AMI) N2 55x95 2 3,500 471,927 5,959 2,028 - 7,987 1.69% N3 50x110 85 3,300 2,147,234 27,111 2,409 4,406 33,926 1.58% 374,523 Bond Amount 5.5% Interest, (AMI) N3 50x110 6 3,300 471,927 5,959 2,028 - 7,987 1.69% 30 Year Term, 29 Year Amortization $32,975,000 N4 49.5x80 85 2,750 1,778,839 22,460 2,248 3,398 28,106 1.58% 288,864 Reserve Fund (125% of Avg Debt Service) ($3,056,282) (AMI) N4 49.5x80 0 2,750 471,927 5,959 1,867 - 7,825 1.66% Capitalized Interest (12 months) ($1,813,703) N5 Clusters 94 2,500 1,591,953 20,100 2,167 2,886 25,153 1.58% 271,284 Underwriter Discount (1.5%) ($494,625) (AMI) N5 Clusters 4 2,500 471,927 5,959 1,786 - 7,744 1.64% Cost of Issuance ($659,500) N6 Towns 96 1,800 1,122,113 14,168 2,167 1,395 17,729 1.58% 133,894 (AMI) N6 Towns 4 1,800 512,959 6,477 1,786 8,262 1.61% - Grand Total 573 2,942 $ 1,825,946 $ 23,054 $ 2,290 $ 3,518 $ 28,862 1.58% $ 2,016,050 Net Construction Proceeds $26,950,890 Net Construction Proceeds Per Unit $47,035 Footnotes: (a) Estimated sales pricing based on information provided by the Developer. (b) Ad Valorem taxes are based on information from County Assessor Office. (c) Other charges and assessments based on information from County Assessor Office. Proposed City special tax or assessment for project specific maintenance. (d) Proposed CFD. CA) C) fired by DPFG 6/5/2023 Rate Exhibit B Total Tax Rate Trumark - Croak Property Annual Special Taxes and Assessments Example Land Use Calculations Lot Size (AMI) (AMI) (AMI) (AMI) (AMI) (AMI) N1 N1 N2 N2 N3 N3 N4 N4 N5 N5 N6 N6 Total/ 65x100 65x100 55x95 55x95 50x110 50x110 49.5x80 49.5x80 Clusters Clusters Towns Towns Average Units 99 2 96 2 85 6 85 0 94 4 96 4 573 Estimated Horne Price $ 2,505,494 $ 471,927 $ 2,067,520 $ 471,927 $ 2,147,234 $ 471,927 $ 1,778,839 $ 471,927 $ 1,591,953 $ 471,927 $ 1,122,113 $ 512,959 $1,825,946.38 Plan Size 3,800 3,800 3,500 3,500 3,300 3,300 2,750 2,750 2,500 2,500 1,800 1,800 2,942 Prooerty Taxes 111 General Property Tax 1.0000% $25,054.94 $4,719.27 $20,675.20 $4,719.27 $21,472.34 $4,719.27 $17,788.39 $4,719.27 $15,919.53 $4,719.27 $11,221.13 $5,129.59 $18,259.46 Other Ad Valorem Taxes County GO Bond School Unified School Community College Fld Zn 7 State Wtr Bay Area Rapid Transit Total Property Taxes Special Taxes and Assessments 121 MOSQUITO ABATEMENT CSA PARAMEDIC CSA VECTOR CONTROL PARAMEDIC SUPPLMNT SFBRA MEASURE AA DSRSD SEWER SVC DUSD MEASURE ETAX HAZ WASTE PROGRAM CSA VECTOR CNTRL B MOSQUITO ASSESS 2008 EAST BAY TRAIL LLD CITY ST LT 83-1 [3] DUBLIN RANCH LIGHTING DISTIRCT [3] CAN GARB/RECYCLE GHAD [4] PROJECT SPECIFIC MAINTENANCE CFD [5] Total Special Taxes and Assessments Total Tax Burden Tax Burden as % of Home Price 0.0103% $258.07 $48.61 $212.95 $48.61 $221.17 $48.61 $183.22 $48.61 $163.97 $48.61 $115.58 $52.83 $188.07 0.1716% $4,299.43 $809.83 $3,547.86 $809.83 $3,684.65 $809.83 $3,052.49 $809.83 $2,731.79 $809.83 $1,925.55 $880.24 $3,133.32 0.0388% $972.13 $183.11 $802.20 $183.11 $833.13 $183.11 $690.19 $183.11 $617.68 $183.11 $435.38 $199.03 $708.47 0.0279% $699.03 $131.67 $576.84 $131.67 $599.08 $131.67 $496.30 $131.67 $444.15 $131.67 $313.07 $143.12 $509.44 0.0140% $350.77 $66.07 $289.45 $66.07 $300.61 $66.07 $249.04 $66.07 $222.87 $66.07 $157.10 $71.81 $255.63 1.2626% $31,634.37 $5,958.55 $26,104.51 $5,958.55 $27,110.98 $5,958.55 $22,459.62 $5,958.55 $20,100.00 $5,958.55 $14,167.80 $6,476.62 $23,054.40 $1.74 $1.74 $1.74 $1.74 $1.74 $1.74 $1.74 $1.74 $1.74 $1.74 $1.74 $1.74 $1.74 $37.40 537.40 $37.40 $37.40 537.40 537.40 $37.40 $37.40 537.40 537.40 $37.40 $37.40 537.40 $5.92 $5.92 $5.92 $5.92 $5.92 $5.92 $5.92 $5.92 $5.92 $5.92 $5.92 $5.92 $5.92 510.00 510.00 $10.00 $10.00 510.00 510.00 $10.00 $10.00 510.00 510.00 $10.00 $10.00 510.00 $12.00 $12.00 $12.00 $12.00 $12.00 $12.00 $12.00 $12.00 $12.00 $12.00 $12.00 $12.00 $12.00 $492.76 $492.76 $492.76 $492.76 $492.76 $492.76 $492.76 $492.76 $492.76 $492.76 $492.76 $492.76 $492.76 $96.00 $96.00 $96.00 $96.00 $96.00 $96.00 $96.00 $96.00 $96.00 $96.00 596.00 596.00 596.00 $6.64 $6.64 $6.64 $6.64 56.64 56.64 $6.64 $6.64 56.64 56.64 $6.64 $6.64 $6.64 $6.00 $6.00 $6.00 $6.00 $6.00 $6.00 $6.00 $6.00 $6.00 $6.00 $6.00 $6.00 $6.00 52.50 52.50 $2.50 $2.50 52.50 52.50 $2.50 $2.50 52.50 52.50 $2.50 $2.50 52.50 $5.44 $5.44 $5.44 $5.44 $5.44 $5.44 $5.44 $5.44 $5.44 $5.44 $5.44 $5.44 $5.44 $19.34 $19.34 $19.34 $19.34 $19.34 $19.34 $19.34 $19.34 519.34 $19.34 $19.34 $19.34 519.34 $38.02 $38.02 $38.02 $38.02 $38.02 $38.02 $38.02 $38.02 $38.02 $38.02 538.02 538.02 $38.02 $486.72 $486.72 $486.72 $486.72 $486.72 $486.72 $486.72 $486.72 $486.72 $486.72 $486.72 $486.72 $486.72 $807.69 $807.69 $807.69 $807.69 $807.69 $807.69 $646.15 $646.15 $565.38 $565.38 $565.38 $565.38 $700.00 $381.00 $0.00 $381.00 $0.00 $381.00 $0.00 $381.00 $0.00 $381.00 $0.00 $381.00 $0.00 $369.03 $2,409.17 $2,028.17 $2,409.17 $2,028.17 $2,409.17 $2,028.17 $2,247.63 $1,866.63 $2,166.86 $1,785.86 $2,166.86 $1,785.86 $2,289.51 $34,043.54 $7,986.72 $28,513.68 $7,986.72 $29,520.15 $7,986.72 $24,707.25 $7,825.18 $22,266.86 $7,744.41 $16,334.66 $8,262.48 $25,343.91 1.36% 1.69% 1.38% 1.6996 1.37% 1.69% 1.3996 1.66% 1.40% 1.64% 1.46% 1.61% 1.39% Footnotes: [1] Average unit square footage and estimated sales pricing based on information provided by the Developer. [2] Tax rates are based on information provided by Alameda County's Auditor -Controller for Tax Rate Area 26-032 for FY 2022/23. [3] Parcel currently within Dublin City Light District (No 1983-1). Project assumes future annexation into Dublin Ranch Lighting District at current rate of $38.02 for FY 2022/2023 while remaining in the citywide light district. [4] Current estimate provided by ENGEO. Expected to fall between $500 - $700. DPFG is using an average of $700 per unit for purposes of this analysis, with the tax assessed by equal lot size based on estimated Equivalent Dwelling Units. Subject to escalation annually on April 30th. [5] Project is required to form a CFD for the purposes of maintaining project public improvements. CA) vi d by DPFG 00 6/5/2023 Maintenance Item Exhibit C Trumark - Croak Property Maintenance Cost Estimates 6/5/2023 Description of Use Unit Quantity Unit Price Estimate Street A Public Road Miles 0.3404 $5,158 $ 1,756 Street B Public Road Miles 0.3775 $5,158 $ 1,947 Neighborhood 1 - Streets Public Road Miles 0.7426 $5,158 $ 3,830 Neighborhood 2 - Streets Public Road Miles 0.7853 $5,158 $ 4,050 Neighborhood 3 - Streets Public Road Miles 0.4652 $5,158 $ 2,400 Neighborhood 4 - Streets Public Road Miles 0.6210 $5,158 $ 3,203 Neighborhood 5 - Streets Public Road Miles 0.4750 $5,158 $ 2,450 Neighborhood 6 - Streets Public Road Miles 0.4680 $5,158 $ 2,414 Slurry & Base Repair Public Road SF 813,495 $0.21 $ 168,800 Subtotal $ 190,851 Contingency and Administration Costs Contingency and Repair/Replacement (10%) City Administration County Administration (1.7%) Subtotal Contingency and Admin Costs Total Project Annual Maintenance Cost Summary Subtotal Annual Maintenance Subtotal Contingency and Admin Costs Total Annual Maintenance Costs Footnotes: [1] Per Unit estimate does not include AMI units. $ 2,205 $ 15,000 $ 3,244 $ 20,450 $ 190,851 $ 20,450 $ 211,300 Per Unit [ 1 ] $ 381 Prepared by DPFG 6/5/20: 369 Facility Description Exhibit D Trumark Homes - Croak Property Preliminary List of Potential Eligible Facilities - CFD Budgeted Potentially Total Eligible [1] City Improvements [21 City of Dublin Grading and Street work $ 31,627,630 $ 12,268,564 Concrete Work 7,898,614 6,735,114 Storm Drain Work 5,362,880 4,942,448 Total City Improvements $ 44,889,124 $ 23,946,126 Other Aeencv Improvements [21 Dublin San Ramon Service District Sanitary Sewer Work $ 4,477,615 $ 3,388,100 Water System Work 3,680,670 3,000,325 Other Various Agencies Electrical/Joint Trench 9,282,400 Miscellaneous Construction 12,314,162 Total Other Improvements $ 29,754,847 $ 6,388,425 TOTAL ESTIMATED FACILITIES $ 74,643,971 $ 30,334,551 TOTAL PER LOT ESTIMATED FACILITIES $ 130,269 $ 52,940 Preliminary List of Potential Eligible Fees Permit Fee Category Fee Per Lot [3] Net Fee Amount Ci Fees City of Dublin Community Park Land In -Lieu Fee Excluded Excluded Eastern Dublin Freeway Interchange Fee 362 207,237 Eastern Dublin Transportation Impact Fee (average) [4] 12,324 7,061,692 Fire Impact Fee [5] 870 498,510 Neighborhood Park Land In -Lieu Fee Excluded Excluded Public Facility Impact Fee [6] 6,785 3,887,805 Tri-Valley Transportation Fee (average) [4] 4,513 2,586,207 Total City Impact Fees $ 24,854 $ 14,241,451 Other Aeencv Fees Alameda County - Zone 7 Water Agency Zone 7 Drainage Fee ($1.00/SF) [7] $ 2,400 $ 1,375,200 Zone 7 Water Connection (5/81 29,440 16,869,120 Dublin San Ramon Service District [4] Sewer Connection (averaged) 14,772 8,464,522 Water Connection (averaged) 17,461 10,005,153 Dublin Unified School District School District Fee - Level II ($7.96/SF) [8] 23,419 13,419,368 Total Other Agency Impact Fees $ 87,493 $ 50,133,363 TOTAL ESTIMATED ELIGIBLE FEES $ 112,347 $ 64,374,814 ELIGIBLE CITY COSTS ELIGIBLE CITY FACILITIES $ 23,946,126 ELIGIBLE CITY FEES $ 14,241,451 TOTAL ELIGIBLE CITY COSTS $ 66,645 $ 38,187,577 OTHER POTENTIALLY ELIGIBLE COSTS OTHER ELIGBIBLE FACILTIES $ 6,388,425 OTHER ELIGBIBLE FEES $ 50,133,363 TOTAL OTHER POTENTIALLY ELIGIBLE COSTS $ 98,642 $ 56,521,788 Footnotes: [1] Assumes all eligible facilities will be acquired by their respective city agency at project completion. Any amounts that include costs/fees ultimately owned privately or by HOA will not be eligible for financing. [2] Excluding rough grading, mitigation improvements, parks, and add alts. [3] Fee data per 7/12/21 Preliminary Cost Estimate Report prepared by MacKay & Somps. [4] Weighted average used to determine estimated impact fee amounts. Final Fees will differ based on ultimate product mix. [5] The Fire Department Fees per unit are assumed to meet all obligations related to Fire Station 18. This does not match the current fee schedule provided by the city. [6] Public Facilities Fee is $27,574 less $8,853 Comm. Park land fee, $5,017 Community Park Improvements fee, $2,932 Neigh. Park improvement fee and $3,987 Neigh. Park land fee. [7] Builder Fee portion is based on an assumed average impervious area per lot. The average across all product types assumed by MacKay & Somps is 2,400 square feet. [8] Weighted average square footage of all product types (2,942 SF) used as per unit base for Level II School District Fees. Prepared by DPFG 6/5/2023 370 Exhibit E CFD Formation Timeline Major Tasks Pre -conference meeting to submit financing plan proposal to the City and special tax consultant. Kick-off meeting with City staff to agree on proposal and schedule moving forward. Prepare Revised Rate and Method of Apportionment and CFD Boundary Map and submit to City. City review/comment, revisions, and finalize City Dublin City Council meets to consider the approval of the Resolution of Intention generally comprising the following documents: (i) Resolution of Intention, (ii) Boundary Map, (iii) RMA and Proforma, (iv) Description of CFD Facilities, and (v) Deposit and Reimbursement Agreement. City of Dublin City Council meets to consider the approval of the Resolution of Formation and approval of Joint Community Facilities Agreements, if applicable. Acquisition Agreement is also approved, if applicable. Commence CFD appraisal process. Record Notice of CFD special tax lien. (Issuance of First Draft of Preliminary Official Statement. (Issuance of Final Appraisal Report. (Issuance of Final Preliminary Official Statement. City Council approves Resolution of Issuance. Bond Pricing (i.e. interest rate is determined and fixed) Bond Closing Cumulative Number of Days to Completion 1 Day 1 Month 1.5 Months 2 Months 5 Months 6.5 Months 8 Months 8 Months 10 Months 11 Months 1 Year 1 Year 1 Year 1 Year, 1 Month Project Status Notes: [a] The Resolution of Formation proceedings must succeed the Resolution of Intention proceedings by at least 30 days. 371 EAST RANCH CFD REVISED PROPOSAL June 20, 2023 !�t DUBLIN CALIFORNIA 372 Project Location • 165.5 acres • 573 Units • 6 Neighborhoods • 2 Public Parks • 2-acre Public/Semi- Public Site CALIFORNIA KAISER MEDICAL Background • April 18, 2023 — Affordable Housing Proposal — Formation of Community Facilities District • Maintenance • Improvements Current Request • Formation of Community Facilities District — Revised Maintenance CFD — Revised Improvements CFD Community Facilities District • East Ranch Services CFD — Fund maintenance of public streets and the storm drain system within the project. — Park maintenance will no longer be funded. — Approximate assessment on each unit within the district will be $381 per year. — Base tax rate (Ad Valorem) I.26%; adjusted tax rate including the Services CFD and other special assessments 1.39%. Community Facilities District • East Ranch Facilities CFD — Fund construction of public infrastructure and development impact fees associated with the project including grading, street improvements, storm drain, water and sewer facilities. — Facilitate construction of two neighborhood parks. Community Facilities District • East Ranch Facilities CFD — CFD special tax rate to include both Services and Facilities CFD will be capped at 1.58%. — Bonding capacity of the Facilities CFD is estimated to yield $26.9 million in net proceeds; 2% annual escalation; interest rate 5.50%. — Special Assessments vary between lot/product types and range from $1,395 - $5,543 per unit (Facilities CFD only). Recommendation Receive the presentation and provide feedback on the Applicant's revised proposal for the formation of Community Facilities Districts to fund the maintenance and construction of public facilities.