Placentia City Council
AGENDA REPORT
TO: CITY COUNCIL
VIA: CITY ADMINISTRATOR
FROM: DEPUTY CITY ADMINISTRATOR / PUBLIC SERVICES & INFRASTRUCTURE DATE: JANUARY 23, 2024
SUBJECT: ADOPT RESOLUTION OF INTENTION TO ESTABLISH CITY OF PLACENTIA COMMUNITY FACILITIES DISTRICT NO. 2024-01 (OLD TOWN PUBLIC
INFRASTRUCTURE) AND TO AUTHORIZE THE LEVY OF A SPECIAL TAX
THEREIN TO FINANCE CERTAIN SERVICES AND RESOLUTION OF
INTENTION TO ALLOW FOR FUTURE ANNEXATION OF TERRITORY TO CITY OF PLACENTIA COMMUNITY FACILITIES DISTRICT NO. 2024-01 (OLD TOWN
MAINTENANCE SERVICES)
FISCAL
IMPACT: PROJECTED ANNUAL EXPENSE: $187,400
PROJECTED ANNUAL REVENUE: $187,400
SUMMARY:
On July 11, 2017, the Placentia City Council approved the adoption of the Old Town Revitalization Plan. The Old Town Revitalization Plan includes a comprehensive Streetscape Master Plan.
Streetscapes are the common connectors between plazas, spaces, parking, and buildings. During public review of the Old Town revitalization project, the public requested a consistent aesthetic that would include curb appeal, earth tones, welcome signs, and streetlights with hanging plants and other amenities such as bike racks, benches, and planters. Street art and public plazas were also desired. Staff coordinated the creation of a Streetscape Master Plan for the Old Town area, emphasizing these components. The Streetscape Master Plan dictates the specific amenities for the Old Town area, so that these elements will be consistent throughout and give the area a sense of place and a feeling of cohesiveness. These include widened sidewalks, landscape enhancements, new trees, bike racks, lighting, trash receptacles, bollards and seating.
In 2020, the City, in partnership with the County of Orange, established an Enhanced Infrastructure Financing District (EIFD). The purpose of the EIFD is to create a funding mechanism that can facilitate the construction of the Streetscape Master Plan in Old Town Placentia.
The recommended actions will initiate the formation of a Mello -Roos Community Facilities District ("CFD") for the purposes of partially funding the maintenance of the Streetscape Master Plan and will set the time and place of the required public hearing. The recommended actions will also establish a proposed annexation area which will allow for future parcels to be annexed into the CFD. The initial CFD will encompass the Orange County Assessor's Parcels identified as 339- 052-27 (2 Guys, LLC, a California Limited Liability Company), at 132 South Bradford Avenue with property owners Walt Lynch and Kenneth Binnings. The future annexation area will encompass
3.b.
Jan 23, 2024
City Council Agenda
January 23, 2024
the entirety of the boundaries of Old Town Placentia as established by the Old Town Revitalization Plan.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Accept the Petition from the developer initiating the formation of a Mello -Roos Community Facilities District (Exhibit A); and
2. Adopt a Resolution of Intention R-2024-04 to establish the proposed City of Placentia Community Facilities District No. 2024-01 (Old Town Maintenance Services) ("CFD No. 2024-01 ") and to authorize the levy of special tax therein to finance certain services (Exhibit B); and
3. Adopt a Resolution of Intention R-2024-05 to allow for the future annexation of territory to Community Facilities District No. 2024-01 and to establish the future annexation area (Exhibit C).
STRATEGIC PLAN STATEMENT:
This item is consistent with the City Council approved 5 -Year Strategic Goal to:
Promote Community and Economic Development, as Objective Number 3.7 to continue to establish Old Town Historic District/Business Improvement District. This agenda item will specifically result in the funding mechanism needed to preserve and maintain the future reconstruction of the public infrastructure in Old Town Placentia.
DISCUSSION:
The Mello -Roos Community Facilities Act of 1982 ("Act") provides for the establishment of a community facilities district to finance infrastructure, development impact fees, and public services. The Act specifically provides for approval of the special tax by vote of the landowners pursuant to § 53326(b) of the California Government Code. Further, the Act specifically provides for the initiation of the establishment of community facilities districts upon receipt by the City of a petition requesting the institution of proceedings by the owners of not less than 10% of the area of land proposed to be included within the district.
Section 53326 (b) provides that, if there are less than twelve (12) registered voters currently within the boundaries of the proposed district, the vote to form the district and levy a special tax shall be by the landowners of property in the proposed district, and each landowner shall have one (1) vote for each acre or portion of an acre of land owned within the proposed district.
On July 11, 2017, the Placentia City Council approved the adoption of the Old Town Revitalization Plan. The Old Town Revitalization Plan includes a comprehensive Streetscape Master Plan. The Streetscape Master Plan dictates the specific amenities for the Old Town area, so that these
City Council Agenda
January 23, 2024
elements will be consistent throughout and give the area a sense of place and a feeling of cohesiveness. These include widened sidewalks, landscape enhancements, new trees, bike racks, lighting, trash receptacles, bollards and seating.
In 2020, the City, in partnership with the County of Orange, established an Enhanced Infrastructure Financing District (EIFD). The purpose of the EIFD is to create a funding mechanism that can facilitate the construction of the Streetscape Master Plan in Old Town Placentia.
The City has discussed the formation of the CFD with property owners in Old Town Placentia, including Walt Lynch and Kenneth Binnings. City Staff discussed the need to create a funding mechanism for the maintenance of the Streetscape Master Plan. Mr. Lynch and Mr. Binnings agreed to be the catalyst for the formation of a new CFD, which will set forth the maintenance costs related to the Streetscape Master Plan and which will be payable by property owners in Old Town through the CFD.
The establishment of Goals and Policies for the use of Community Facilities Districts is required by the Mello -Roos Act and was necessary before the City Council could initiate proceedings to establish a new CFD. The Goals and Polices, approved November 5, 2013, provide general guidance and conditions for the conduct by the City of proceedings for forming CFD's.
The required petition requesting the City Council begin proceedings for the formation of the CFD has been executed by Mr. Walt Lynch and Mr. Kenneth Binnings, owners of 132 South Bradford Avenue, and has been included as Exhibit A.
Approval of the Resolution of Intention to establish the proposed City of Placentia Community Facilities District No. 2024-01 (Old Town Maintenance Services) constitutes the next step in the formation process and essentially declares the City's intention to form the district, approves the boundary of the CFD, calls for the preparation of the CFD Report, and sets the time and place of the required Public Hearing.
The proposed tax to be levied is based upon a Rate and Method of Apportionment analysis that was prepared by David Taussig and Associates. The analysis indicates that the tax rate needed to maintain the Old Town public infrastructure improvements is $0.0765 per land area square footage for properties that are undergoing rehabilitation/remodeling per year. Since the area is completely built out and is historic in nature, it is anticipated that most properties in Old Town will be rehabilitated/remodeled vs. new construction/development.
Approval of the Resolution of Intention to allow for future annexation of territory to City of Placentia Community Facilities District No. 2024-01 gives the City the ability to annex future development projects into CFD No. 2024-01 in a streamlined process to help offset the costs of providing public safety services to those newly developed areas. Approval will allow an expedited annexation process for future projects and will only require a petition from the property owners within the area to be annexed and a public hearing to count the votes and annex the project into the pre- established district.
City Council Agenda
January 23, 2024
FISCAL IMPACT:
For the CFD tax to be applied to a parcel, either rehabilitation/remodel must be completed or a building permit for the rehabilitation needs to be issued by the City by June 1st of the preceding fiscal year.
Prepared by:
AIN /1
Jeannette • .1-ga
Deputy Director of Administrative Services
Reviewed and approved:
Jennifer, Lampman
Director of Finance
Reviewed and�appr•ved: Reviewed and ap•roved•
Luis Estevez U
Deputy City Administrator
Damien R. Arrula
City Administrator
Attachments:
1. Property Owner Petition
2. Property Owner Petition Requesting and Consenting to Assessment
3. Resolution No. R-2024-04 - Annexation of Territory to CFD 2024-01
4. Resolution No. R-2024-05 - Resolution of Intention to establish Future Annexation Area