TO:
VIA:
FROM:
DATE:
Placentia City Council
AGENDA REPORT
CITY COUNCIL
CITY ADMINISTRATOR
DEPUTY CITY ADMINISTRATOR/ PUBLIC SERVICES & INFRASTRUCTURE JUNE 20, 2023
SUBJECT: PUBLIC HEARING AND TABULATION OF BALLOTS FOR ANNEXATION INTO COMMUNITY FACILITIES DISTRICT NO. 2014-01 (PUBLIC SERVICES CFD) FISCAL
IMPACT: ANNUAL REVENUE: $111,915.32 (550000-4505)
SUMMARY:
On February 18, 2014, the City Council adopted Resolution No. R-2014-10, establishing Community Facilities District No. ("CFD") 2014-01 ("Public Services CFD") to provide an ongoing sustainable funding source paid for by new developments to help fund the cost of public safety services. On March 4, 2014, the City Council adopted Ordinance No. 2014-03, authorizing the City Council to determine, by resolution, on or before August 1 of each year, the specific special tax to be levied on each parcel of land within the CFD. At that time, the City Council also, in the adoption of the territory map, approved the area designated as future annexation to the CFD. This action requests that the City Council conduct a Public Hearing to annex territory to the CFD.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Open the Public Hearing concerning the annexation of the JPI Cenza development project; and
2. Receive the Staff Report, consider all public testimony, ask questions of Staff; and
3. Conduct election for annexation of the JPI Cenza TOD Project Annexation to Community Facilities District No. 2014-01 (Public Services); and
4. Close the Public Hearing; and
5. Adopt the Resolution No. R-2023-47, A Resolution of the City Council of the City of Placentia, California, Making Certain Findings, Certifying the Results of an Election and Ordering the Annexation of Territory (JPI Cenza TOD Annexation) to Community Facilities District No. 2014-01 (Public Services) and Approving the Amended Map for Said District.
2.a.
June 20, 2023
City Council Agenda
June 20, 2023
STRATEGIC PLAN STATEMENT:
There is no specific Strategic Plan Goal or Objective associated with this Council action.
DISCUSSION:
In 1978, California voters enacted Proposition 13, which limited the ability of local public agencies to increase property taxes based on a property's assessed value. In 1982, the Mello -Roos Community Facilities Act of 1982 (Act) was created to provide an alternate method of financing public infrastructure and services. Under the Act, a CFD may fund public improvements with a useful life of five (5) years or more, such as park and recreational facilities, streets, sewer systems, schools, libraries, childcare facilities, and other basic infrastructure. CFDs may also fund the maintenance and servicing of public landscape areas, parks, streetlights, roads, storm drain systems, and police and fire services to maintain service levels.
In 2014, the City Council created CFD 2014-01 to provide a new revenue stream paid for by new residential developments to be used to help fund the cost of public safety services. This type of financing program, which is authorized under the Mello -Roos Community Facilities Act of 1982, envisioned the participation of all future additional new development projects, either by formation of new districts or annexation into the existing CFD.
As a condition of approval for the project, the JPI Transit -Oriented Development at 505 W.
Crowther Avenue was required to annex itself to CFD 2014-01. This project is currently under the final phase of construction and will need to be annexed into the CFD prior to receiving a Certificate of Occupancy. As part of the annexation process, the City Council adopted a Resolution of Intention (Resolution) on May 16, 2023. The Resolution set forth the terms and conditions for annexing territory into the CFD and included the rate and apportionment for the special tax to be levied and set June 20, 2023, at 7:00 p.m. as the date and time of the public hearing on the annexation. Since there are less than 12 registered voters in the territory proposed to be annexed, the election is a landowner vote of the property to be annexed into the district. As a result of the property being owned by the developer, only one vote is required to be tabulated. Tonight, in order to complete the formation proceedings, the following actions are required:
• The Public Hearing is held on June 20, 2023, at approximately 7:00 p.m. • The election is held at approximately 7:00 PM on June 20, 2023, at which time the City Clerk opens the ballots, tallies the vote and announces the results of the election. • The City Council adopts a Resolution Certifying the Election and Ordering the Annexation of Territory (JPI Annexation) to Community Facilities District No. 2014-01 (Public Services) and Approving the Amended Map for Said District (Attachment 1).
Staff is recommending the City Council for CFD No. 2014-01 to: (a) hold a public hearing; (b) assuming there is no majority protest at the public hearing, adopt the Resolution Certifying the Election and Ordering the Annexation of Territory (JPI Annexation) to Community Facilities District No. 2014-01 (Public Services) and Approving the Amended Map for Said District (Attachment 3); and (c) direct that a revised notice of special tax lien be recorded pursuant to Section 3117.5 of
City Council Agenda
June 20, 2023
the Streets and Highways Code with respect to the Annexation Parcel associated with the Boundary Map.
FISCAL IMPACT:
For the CFD tax to be applied to a parcel, either construction must be completed or a building permit for the development needs to be issued by the City by June 1 of the preceding fiscal year.
Currently, a total of 181 residential parcels have been annexed into CFD 2014-01 since its creation. For FY 2023-24, 181 parcels will be assessed at the adjusted special tax rate of $354.36 for a total of $64,139.16 in anticipated revenue. The addition of the new annexation into the special tax district will generate additional revenue as summarized in the table below.
Development Number of Units Annual Unit Rate Total Annual Revenue
JPI Luxury 418 $267.74 $111,915.32
Apartments
The City will levy assessments on this annexed property beginning FY 2023-24.
Prepared by: Reviewed and approved:
fka robtk,sbin,
Elsa Y. Robinson
Senior Management Analyst
Reviewed and ap yoved:
Luis Estevez
Deputy City Administrator
/-
Jennifer Lampman
Director of Finance
Reviewed and approved:
/) 2 A —
Damien R. Arrula
City Administrator
Attachments:
1. Property Owner Petition
2. Resolution No. R-2023-47 — Annexation of Territory to CFD 2014-01
3. Amended Annexation Boundary Map