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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. 2018-01
FISCAL
IMPACT: ANNUAL REVENUE: $61,140.86 (800000-4505)
SUMMARY:
On April 20, 2018, the City Council adopted Resolution No. R-2018-08, establishing Community Facilities District ("CFD") 2018-01 within the City's Transit Oriented District ("TOD") to provide a non -General Fund and sustainable funding source to pay for the ongoing maintenance and repairs of the public streetscape improvements constructed within the TOD. At that time, the City Council also, in the adoption of the territory map, approved the area designated as future annexation to the CFD. Staff recommends that the City Council hold a public hearing to annex the JPI Cenza apartment building project 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 apartment building project; and
2. Receive the Staff Report, consider all public testimony, ask questions of Staff; and
3. Close the Public Hearing; and
4. Accept the Petition, Consent and Waiver from the landowner for annexation to Community Facilities District No. 2018-01 (TOD CFD); and
5. Adopt the Resolution No. R-2023-48, 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 Annexation) to Community Facilities District No. 2018-01 (TOD CFD) and Approving the Amended Map for Said District.
2.b.
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 upon 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 Community Facilities District ("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 public infrastructure. CFDs may also fund the maintenance and servicing of public landscape areas, parks, streetlights, storm drain systems, and public safety services.
In 2018, the City Council created a new CFD to assist in the financing of maintenance and repairs of the new public amenities constructed within the TOD which includes street and pedestrian lighting, landscaping, storm water basins, and pedestrian amenities. All TOD developers are required to annex their properties into the District as a condition of approval for receiving their entitlements. Each fiscal year the City determines the special tax requirement and associated annual special tax rates for the CFD based upon maintenance and servicing costs within the Project. The special tax is levied and collected in perpetuity, unless and until such time the City determines that the revenue is no longer needed.
Currently, the CFD has one annexation to date. In 2017, the City Council approved the land entitlements for the Integral/Lyon Living Project, also known as "The Herald," along with a Development Agreement. The Agreement required Integral/Lyon Living to be the first project to create and annex itself into the new District. This project has been completed and received its Certificate of Occupancy in Fall 2021 and accordingly, this property was levied for the first time in Fiscal Year ("FY") 2022-23 at the rate for a Developed Multi -Family Property. The second property proposed for annexation to the CFD is the JPI Cenza development at 505 W. Crowther Avenue.
Construction of this project is nearing completion. The JPI development will need to be annexed to the CFD prior to receiving a Certificate of Occupancy.
On May 16, 2023, the City Council adopted Resolution No. 2023-31, declaring its intention to annex the JPI development into the CFD and set June 20, 2023, at 7:00 p.m. as the date and time of the public hearing on the resolution of intention. 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 Ordering the Annexation of Territory (JPI Annexation) to Community Facilities District No. 2018-01 (TOD CFD) and Approving the Amended Map for Said District (Attachment 1).
City Council Agenda
June 20, 2023
Staff is recommending the City Council for CFD No. 2018-01 to: (a) hold a public hearing; (b) assuming there is no majority protest at the public hearing, adopt the Resolution Ordering the Annexation of Territory (JPI Annexation) to Community Facilities District No. 2018-01 (TOD CFD) 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 the Streets and Highways Code with respect to the Annexation Parcel associated with the Boundary Map.
FISCAL IMPACT:
This project is currently under construction and this property will not be assessed in FY 2023-24.
The RMA Report for CFD 2018-01 only allows for taxing developed property and developed property is defined as property that has received a Certificate of Occupancy issued prior to May 1 of the preceding fiscal year. The new JPI Cenza annexation into the special tax district will generate future revenue as summarized in the following table:
Development Number of Units Annual Unit Rate
JPI/Cenza
418 $146.27
Total Annual
Revenue
$61,140.86
The City will levy assessments on this annexed property beginning FY 2024-25.
Prepared by:
1 tSa rOkut SOI,,
Elsa Y. Robinson
Senior Management Analyst
Reviewedand''apved:
Luis Estevez
Deputy City Administrator
Reviewed and approved:
Jennifer Lampman
Director of Finance
Reviewed and approved:
Damien R. Arrula ; 1
City Administrator
Attachments:
1. Property Owner Petition
2. Resolution No. R-2023-48 — Annexation of Territory to CFD 2018-01
3. Annexation Boundary Map