TO:
VIA:
CITY COUNCIL
CITY ADMINISTRATOR
Placentia City Council
AGENDA REPORT
SECOND READING AND ADOPTION
Ord No. 0-2024-03 Date: 3/19/2024 Item No. 1.e.
First Reading and Approval: 3/5/2024
Reviewed and Approved:
FROM: DEPUTY CITY ADMINISTRATOR / ipC ;,ii ��
PUBLIC SERVICES & INFRASTRUCTURE Department Head 0,11)
Deputy City Clerk t
DATE: MARCH 5, 2024
SUBJECT: ADOPT RESOLUTION OF FORMATION TO ESTABLISH CITY OF PLACENTIA COMMUNITY FACILITIES DISTRICT NO. 2024-01 (OLD TOWN MAINTENANCE
SERVICES) AND ESTABLISH THE APPROPRIATIONS LIMIT FOR THE PROPOSED COMMUNITY FACILITIES DISTRICT; ADOPT RESOLUTION CALLING A SPECIAL TAX ELECTION; FIRST READING OF AN ORDINANCE TO AUTHORIZE THE LEVY OF SPECIAL TAXES; ADOPT RESOLUTION
AUTHORIZING FUTURE ANNEXATIONS TO PLACENTIA COMMUNITY
FACILITIES DISTRICT NO. 2024-01; ADOPT RESOLUTION DECLARING THE
RESULTS OF THE SPECIAL ELECTION
FISCAL
IMPACT: PROJECTED ANNUAL EXPENSE: $187,400
PROJECTED ANNUAL REVENUE: $187,400
SUMMARY:
On January 23, 2024 the City Council adopted a Resolution of Intention to establish the proposed Community Facilities District No. 2024-01 (Old Town Maintenance Services) ("CFD No. 2024- 01 "). The recommended actions will complete the formation of a Mello -Roos Community Facilities District ("CFD") for the purposes of partially funding the maintenance of the Old Town Placentia Streetscape Master Plan. The recommended action will also establish the previously approved future annexation area which will allow for future developments to be annexed into the CFD in an expedited fashion. 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 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. Open a public hearing inviting interested parties to speak for or against the establishment of the CFD, the extent of the CFD, or the furnishing of the specified services; and
1.e.
March 19, 2024
City Council Agenda
March 5, 2024
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Services); Authorizing the Levy of Special Taxes; and Establishing the Appropriations Limit for the proposed Community Facilities District; and
3. Adopt Resolution No. R-2024-14, a Resolution of the City Council of the City of Placentia Calling a Special Tax Election and Submitting to the Qualified Electors the Questions of Levying a Special Tax on the Property located in the City of Placentia Community Facilities District No. 2024-01 (Old Town Maintenance Services); and
4. Adopt Resolution No. R-2024-15, a Resolution of the City Council of the City of Placentia setting forth Procedures to Allow for Future Annexation of Territory to the City of Placentia Community Facilities District No. 2024-01 (Old Town Maintenance Services); and
5. Accept the Ballot(s) from the landowner(s), tabulate the votes for and against the establishment of the CFD and certify the election results; and
6. Adopt Resolution No. R-2024-16, a Resolution of the City Council of the City of Placentia Declaring the Results of the Special Election, Determining the Validity of Prior Proceedings, and Directing the Recording of Notice of Special Tax Lien; and
7. Introduce for first reading, by title only, further reading waived, Ordinance No. 0-2024-03, an Ordinance of the City Council of the City of Placentia, California, Levying Special Taxes within the City of Placentia Community Facilities District No. 2024-01 (Old Town Maintenance Services).
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 OId 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 OId 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 Tess 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
City Council Agenda
March 5, 2024
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 OId 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 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 OId Town Placentia, including Walt Lynch and Kenneth Binnings. City Staff discussed the need to create a funding mechanism for the maintenance of the Old Town Placentia 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 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.
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.
On January 23, 2024, the City Council adopted Resolution of Intention to establish the proposed City of Placentia Community Facilities District No. 2024-01 (Old Town Maintenance Services) (Resolution No. R-2024-04) which declared the City's intention to form the district, approved the boundary of the CFD, called for the preparation of the Community Facilities District (CFD) Report (Exhibit D to the Resolution of Formation), and set the time and place of the required Public Hearing. The City Council also adopted a Resolution of Intention to allow for Future Annexation of territory to the CFD (Resolution No. R-2024-05). A public hearing was set for March 5, 2024, to discuss the formation of the CFD and future annexation of territory.
City Council Agenda
March 5, 2024
The CFD Report provides a description of the Services to be funded by the CFD and an estimate of the fair and reasonable cost of the Services and incidental expenses of the CFD. The CFD Report also shows the boundaries of the proposed CFD and the affected assessor's parcels. The CFD boundary map and future annexation area of CFD No. 2024-01 has been recorded on February 6, 2024, in the Office of the County Recorder of Orange County, California in Book 109, page 40-41 M/M of Maps of Assessment and Community Facilities Districts (Instrument No. 2024000026763).
The Notice of Public Hearing was published on February 22, 2024, in the Placentia News Times, a newspaper of general circulation in the area of the proposed CFD, as required by the Code.
The next step in the formation process is to hold a public hearing whereby if no majority protest exists among the qualified electors (in this instance the landowner) the City Council may proceed to adopt the Resolution of Formation, which establishes the CFD contingent upon approval by the qualified electors. Since the Developer owns 100% of the property within the proposed CFD and has signed and submitted the Consent and Waiver, the election may be conducted immediately following the adoption of the Resolution of Formation. The ballots should be tabulated, and the election results declared.
If the electors approve the CFD, the CFD board may, by Ordinance, levy and collect the special tax and furnish the approved services. The first reading of the Ordinance Authorizing the Levy of the Special Tax may occur immediately following the certification of election results. It is estimated that at full development and prior to any annexations, the proposed CFD could generate around $187,400 dollars a year in additional revenue to the City for maintenance services in Old Town.
Within 15 days of adopting the Resolution of Formation the Notice of Special Tax Lien (Attachment "6") will need to be recorded with the County.
Approval of the Resolution 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 ongoing maintenance 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.
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 1 of the preceding fiscal year.
City Council Agenda
March 5, 2024
Prepared by: Reviewed and approved:
Jeannette Ortega Jennifer L mpman
Deputy Director of Administrative Services Director of Finance Reviewed and approved:
Luis Estevez
Deputy City Administrator
Reviewed and approved:
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Darrfien R. Arrula
City Administrator
Attachments:
1. Resolution No. R-2024-13 - Resolution of Formation
2. Resolution No. R-2024-14 - Resolution Calling a Special Tax Election
3. Resolution No. R-2024-15 - Resolution of Future Annexation Area
4. Resolution No. R-2024-16 - Resolution of Declaring the Results of the Special Tax Election
5. Ordinance No. 0-2024-03 - Authorizing the Levy of the Special Tax
6. Notice of Special Tax Lien