Agenda Item No: M.2
AGENDA REPORT
DATE: January 20, 2026
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2026-14 PW Annexing Territory (Courage Investments Warehouse) to CFD 2012-2 and Resolution 2026-15 Declaring Results of Special Election
Resolution 2026-14 Annexing Territory Courage Investments Warehouse Project to Community Facilities District No. 2012 -2 (Public Safety Services, Open Space Operation, and Park Maintenance), as Annexation No. 71, Authorizing the Levy of a Special Tax Within the Annexed Territory, and Submitting the Levy of a Special Tax to Qualified Electors Thereof; and
Resolution 2026-15 Declaring the Results of a Special Annexation Election in Territory Annexed to Community Fac ilities District No. 2012 -2 (Public Safety Services, Open Space Operation, and Park Maintenance), Determining the Validity of Prior Proceedings, and Directing Recording of Amended Notice of Special Tax Lien for City of Fairfield Community Facilities Distri ct No. 2012-2 (Public Safety Services, Open Space Operation, and Park Maintenance) Annexation No. 71 Courage Investments Warehouse Project
Funding Source: N/A
Contact: Valerie Standfill, (707) 428-7055
RECOMMENDED ACTION
Hold public hearing and adopt resolutions.
STATEMENT OF ISSUE
As a condition of approval for the Courage Investments Warehouse Project, the property must be annexed into Community Facilities District No. 2012 -2 (CFD 2012-2). The district was formed by the City to fund public safety services, open space operations, and park maintenance. A public hearing is required to consider the annexation. In the absence of a majority protest, the attached resolutions would annex the territory in to CFD 2012 -2, authorize the levy of a special tax with the annexed territory subject to voter approval, call an election for the property owner, and declare the election results.
DISCUSSION
On November 20, 2012, the City Council adopted Resolution No. 20 12-233, establishing CFD 2012-2 under the Mello-Roos Act with the intention that future developments within the City of Fairfield would annex to this district. The special taxes collected from the property owners within the District are used to fund public safety services, open space operation, and park maintenance.
The property proposed for annexation is owned by Courage Investments #2, LLC, a California limited liability company and is located north of Courage Dr ive and west of N orth Watney Way within the boundary of Assessor’s Parcel Numbers (APN) 0028-761-320 and 0028 -761-350, the boundaries of which are depicted on Exhibit A. The development of the property will be a light industrial warehouse. Development of this property will change the property’s characteristics and manner in which the property will be used, thereby creating a need for more services funded by CFD 2012-2.
The City contracts w ith Willdan Financial Services for the preparation of resolutions and the completion of balloting procedures for the annexation to existing CFDs. This process is a specialty service that the City has contracted out since 1995 on an individual consultant s ervices basis for each development requiring annexation into a Mello-Roos CFD.
On November 18, 2025, t he council adopted Resolution No. 2025 -226 declaring its intention to annex the territory to CFD 2012 -2 and set a public hearing for January 20, 2026. Fo llowing the public hearing, and in the absence of a majority protest and approval by the property owner, the adoption of the attached resolutions will annex the territory to CFD 2012 -2, call and hold an election of the property owner within the annexed ter ritory, declare the results of the special election, and authorize the levy of the special taxes within the annexed territory, thereby concluding the annexation process.
Once the annexation is finalized, the designated territory will be identified as Annexation No. 71.
The property owner within Annexation No. 71 will be responsible for paying annual special taxes for CFD 2012-2, starting with the fiscal year 2026 -2027, as outlined on their property tax bill in accordance with the Rate and Method of Apportionment for the Special Tax associated with CFD 2012-2.
FINANCIAL IMPACT
The estimated annual revenue to be received by the City for this annexation is estimated to be $4,006.05, which is based on the FY 2025 -2026 maximum special tax rate for an Industrial property (Fund 332). The CFD 2012 -2 maximum special tax rates include an automatic annual Consumer Price Index (CPI) adjustment. The process for the annexation is funded by the Developer and no general fund monies are used for this effort.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
If the council has any questions concerning the required annexation of this development, this item may be rescheduled until the next council meeting to allow staff to provide the necessary background information. However, if the annexation is not approved, the conditions of approval for this development would not be fulfilled and the development process would cease.
STAFF CONTACT
Valerie Standfill, Management Analyst
(707) 428-7055
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution Annexing Territory
Attachment 3: Proposed Resolution Declaring Results
Attachment 4: Exhibit A – Boundary Map
Attachment 5: Exhibit B – Ballot
Attachment 6: Exhibit C – Declaring Results