STAFF REPORT
TO: Mayor and City Council DATE: May 5, 2022
FROM: Kofi Antobam, Director of Administrative Services SUBJECT: Consideration of Resolution of Intention to Annex Territory Comprising 6.01 Acres to Community Facilities District No. 1 in Connection with Preliminary Development Plan Case No. PDP19005
SPECIFIC REQUEST OR RECOMMENDATION
That the City Council approve and adopt Resolution No. 2022-(next in order), declaring the City's intention to annex territory to Community Facilities District No. 1 and to levy a special tax therein for additional police and fire services, preliminarily approve a map of the area proposed to be annexed, and schedule a public hearing to consider the annexation and the levy of the special tax for Annexation No. 188
JUSTIFICATION OR INFORMATION
Procedural Background:
The proposed process for this annexation of territory into Community Facilities District No. 1 (police and fire) (sometimes, the "District") is the standard process followed by the City of Rancho Mirage ("City") for all development within the City's jurisdiction. This is the first step in the City's process to complete the annexation of this development project into the District (the second, and last step, will be considered by the City Council at its June 16, 2022 meeting).
Property Information:
The territory proposed for annexation ("Annexed Territory") is located immediately west of Vista Del Sol, north of Country Club Drive, and east of the Eisenhower Medical Center campus. The Annexed Territory is comprised of a portion of two parcels totaling approximately 6.01 acres (gross). PDP19005 was approved by the City Council on August 20, 2020. The zoning is P/H (Hospital) and part of the Eisenhower Medical Center Specific Plan. The project has a condition of approval (#47) to annex into Community Facilities District No. 1 1.
District Background:
The Mello-Roos Community Facilities District Act of 1982 (the "Mello-Roos Act" or the "Act," Government Code§ 53311 et seq.) provides the City with a means of financing public facilities, 1 The Tract Map associated with this project also has a condition to annex into the District.
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DATE: May 5, 2022
CFD No. 1 Annexation No. 188; Hazelden Betty Ford Center Page 2 of 4 INFORMATION CONTINUED:
infrastructure, and services, especially in connection with new development through the imposition of special taxes approved by a vote of the qualified electorate of the District.
On September 27, 1990, the City established the District pursuant to the Act, wherein a special tax is levied on new residential and commercial/industrial developments to recapture costs associated with the provision of additional police and fire services rendered to those new developments that are not reimbursed by property taxes.
In accordance with Condition No. 47 of Preliminary Development Plan PDP19005, the owner of the Annexed Territory, Hazelden Betty Ford Foundation (the "Owner"), submitted a Petition for Annexation (the "Petition"), a copy of which is on file in the City Clerk's Office and is incorporated by reference to the attached Resolution of Intention (the "Resolution"), which requests the City Council to initiate annexation proceedings to annex the Annexed Territory into the District and provides for expedited approval of the annexation and the levy of the special tax.
The proposed annexation to the District contains approximately 6.01 acres (gross) as shown on the annexation map attached to the Resolution ("Annexation Map"), which will be preliminarily approved with adoption of the proposed Resolution. This annexation to the District is identified as Annexation Number 188. The project is slated to demolish four existing one story residential buildings and replace them with two 2 story buildings on a previously annexed portion of land adjacent to the Annexed Territory, and construct a new 22,748 square foot, one story day treatment building on the Annexed Territory. For illustration purposes only, if this portion of the project were to be built in FY21-22, the estimated annual District revenue generated for this annexation would be $25,250.28 (22,748 square feet x FY21/22 CFO commercial fee of $1.11 per square foot).
Discussion:
The process to accomplish an annexation to a community facilities district is governed by the Act (see Government Code Sections 53339 et seq.). The process can be expedited following the procedures authorized under Government Code Section 53327 of the Act, which permits the City to introduce the proposed Resolution at a City Council meeting and at the next City Council meeting, conduct the public hearing, call the special election, announce the results of the special election, and approve the annexation and levy the special tax using the rate and method of apportionment set forth in Exhibit "B" of the Resolution.
This expedited process is made possible by the Petition received from Owner which asserts, and the City has confirmed, that the Owner owns one hundred percent of the Annexed Territory, which is vacant land. Since Owner is the sole owner of the Annexed Territory, Owner will be the sole participant in the special election to approve the annexation and levy the tax . The Petition allows for a shortening of the time for the special election to expedite the annexation process and waives any requirement for notice, analysis and arguments in connection with the election.
The City Clerk concurs with the shortened time for the election.
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DATE: May 5, 2022
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Approval of the Resolution would allow the City to do the following:
1. Accept the Petition submitted by Owner requesting that the City initiate proceedings for the annexation of the Annexed Territory to the District, consent to the levy upon the Annexed Territory of the District's special tax for additional police and fire services, allow a shortening of the time for the special election to expedite the annexation process, and waive requirements for notice, analysis and arguments in connection with the special election required to be conducted for the annexation.
2. Accept and preliminarily approve the Annexation Map and direct the City Clerk to record the map within fifteen days of the date of the adoption of the Resolution; and
3. Establish the date and time of the public hearing on the annexation and levy of the special tax and direct the City Clerk to mail/deliver to Owner the sole ballot on the issue of the annexation and levy of the special tax, which must be received prior to the start of the public hearing .
Assuming the City Council approves the Resolution, the following steps will remain in order to accomplish the annexation and levy the special tax:
1. The Annexation Map will be recorded .
2. The City Clerk will mail or deliver the special election ballot to Owner with a return deadline that is prior to the start of the public hearing.
3. On the date of the public hearing, the City Council will conduct the public hearing, at which time the qualified electors residing in the District may appear and be heard on the annexation and levy of the special tax. The City Clerk will report at the meeting on the number of protests. In the unlikely event fifty percent (50%) or more of the registered voters residing within the territory proposed to be included in the District file written protests against the levy, no action to annex the Annexed Territory will be taken by the City Council.
4. At the conclusion of the public hearing, provided written protests have not been filed, the City Council will be asked to consider adoption of a resolution calling a special election to submit to Owner, as the sole qualified elector of the Annexed Territory, the question of levying the special tax . The City Clerk will then canvass the voted ballot and report the results of the election to the City Council.
5. Finally, the City Council will consider the adoption of a resolution declaring the results of the election, approving the annexation of the Annexed Territory and the levy, and directing the City Clerk to complete, execute and cause to be recorded an amendment to the Notice of Special Tax Lien in the form required by ·the Act, within fifteen days of the date of the adoption of the resolution, as required by Section 3117.5 of the California Streets and Highways Code.
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California Environmental Quality Act (CEQA):
The annexation of territory to a community facilities district constitutes the creation of a funding mechanism and/or other governmental fiscal activity, which will not involve commitment to a specific project that may result in a potentially significant physical impact on the environment.
As such , the proposed annexation and levy of the special tax are exempt from environmental review under the California Environmental Quality Act ("CEQA"), pursuant to sections 15378(b) and 15061 (b)(3) of the CEQA Guidelines.
Attachment(s):
1. Resolution
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