STAFF REPORT
TO: Mayor and City Council DATE: April 6, 2023
FROM: Kofi Antobam, Director of Administrative Services SUBJECT:. Annexation . No. 190 to Community Facilities District No. 1 in Connection with Tentative Parcel Map No. 38315
SPECIFIC REQUEST OR RECOMMENDATION
The recommended process for this agenda item is:
1. Mayor opens public hearing
2. Mayor asks City Clerk for election results
3. City Clerk declares election results
MOTION:
That the City Council adopt Resolution No. 2023-(Next-in-Order), calling an election on levying a special tax within the area proposed to be annexed to Community Facilities District No. 1 (Annexation No. 190), declaring the election results, approving the annexation of the territory and directing the recordation of the amendment of the Notice of Special Tax Lien, in connection with Tentative Parcel Map No. 38315.
JUSTIFICATION OR INFORMATION
BACKGROUND:
The proposed process for this annexation of territory into C_ommunity 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 second and last step in the City's process to complete the annexation of this development project into the District (the first step was considered and approved by the City Council at its February 16, 2023 meeting).
The territory proposed for annexation ("Annexed Territory") is located at the northwest corner of Cypress Lane and Palomino Lane. The Annexed Territory is comprised of one parcel totaling approximately 1.03 acres (gross). The zoning is R-M (Medium Density Residential). The project has a condition of approval (#16) to annex into Community Facilities District No. 11 .
DISCUSSION:
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, infrastructure, and services, especially in connection with new development through the imposition of special taxes approved by a vote of the qualified electorate residing in the District. 1 The Tract Map associated with this project a l so has a condition to a nnex into the Distri ct.
AGENDA ITEM#
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DATE: April 6, 2023
CFD No. 1 Annexation No. 190; Palomino Four Page 2 of 2 JUSTIFICATION OR INFORMATION CONTINUED:
In accordance with the Act, on September 27, 1990, the City established the District to help pay for public safety costs (police and fire) associated with new development. Since that time, development projects are required to annex into the District. Palomino Four LLC ("Owner"), the property owner and developer of this project, submitted a petition (the "Petition") that requested the City Council initiate annexation proceedings and provide for expedited approval of the annexation and the levy of the special tax.
On February 16, 2023, the City Council adopted Resolution No. 2023 -04 (the "Resolution of Intention") declaring its intention to annex certain territory to the District and to levy a special tax within that territory to pay for additional police and fire services and setting the time and place for the public hearing on the proposed annexation for April 6, 2023. · . As detailed in the Resolution of Intention, the Petition filed by the Owner 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. As such, the public hearing on the proposed annexation of territory to the District and the proposed levy of the special tax may take place at today's meeting and, barring receipt of a majority protest, the special election on the levy of the special tax may also take place at the same meeting.
At today's meeting, 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 into the District will be taken by the City Council.
At the conclusion of the public hearing, provided written protests have not been filed, the City Council may consider adoption of the attached resolution calling an election to submit to the qualified elector the questions of levying a special tax within the area proposed to be annexed to the District, declaring results of special tax election, determining validity of prior proceedings, approving the annexation of the territory, and directing recording of an amendment to the notice of special tax lien .
As of FY22/23, the estimated annual District revenue generated for this annexation would be $1,431.12 (4 dwelling units x FY22/23 CFO per dwelling unit fee of $357 .78 per dwelling unit).
Fees do not get assessed until a building permit is issued.
ATTACHMENT(S):
1 . Resolution
AGENDA ITEM#
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ATTACHMENT 1
RESOLUTION
(SEE ATTACHED)
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RESOLUTION NO. 2023-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO MIRAGE,
CALIFORNIA, CALLING AN ELECTION ON LEVYING A SPECIAL TAX WITHIN THE AREA PROPOSED TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 1 (ANNEXATION NO. 190), DECLARING RESULTS OF THE ELECTION, APPROVING
THE ANNEXATION OF THE TERRITORY AND DIRECTING RECORDING OF THE
AMENDMENT OF NOTICE OF SPECIAL TAX LIEN
WHEREAS, the City Council is authorized by the Mello-Roos Community Facilities District Act of 1982 (the "Mello-Roos Act," Government Code § 53311 et. seq.) to annex territory into an existing community facilities district by complying with the procedures set forth therein; and
WHEREAS, the City Council on February 16, 2023, duly adopted Resolution No. 2023-04 (the "Resolution of Intention") declaring its intention to annex certain territory to Community Facilities District No. 1 (the "District") and to levy a special tax within that territory to pay for additional police and fire services and setting a time and place for the public hearing on the proposed annexation for April 6, 2023; and WHEREAS, the Resolution of Intention calls for a special election on levying special taxes on the territory proposed to be annexed (the "Annexed Territory") to the District; and
WHEREAS, a copy of the Resolution of Intention, incorporating a description and map of the proposed boundaries of the territory to be annexed to the District and stating the services to be provided and the rate and method of apportionment of the special tax to be levied within the District, is on file with the City Clerk and the provisions thereof are fully incorporated herein by this reference as if fully set forth herein; and WHEREAS, pursuant to the Mello-Roos Act and the Resolution of Intention, a noticed public hearing was convened by the City Council on April 6, 2023, at the City Hall Council Chambers at 69-825 Highway 111, Rancho Mirage, California, at which time the proposed annexation and tax levy was heard and discussed; and WHEREAS, pursuant to the Resolution of Intention, the City Clerk published notice of the time and place of the hearing as required by the Mello-Roos Act; and WHEREAS, the City Council previously determined fewer than twelve registered voters reside in the Annexed Territory and that the sole qualified elector in the Annexed Territory is the landowner, who shall have one vote for each acre or portion of acre he/she/it owns within the Annexed Territory; and
WHEREAS, the City Council has received a petition from the landowner consenting to the shortening of election time requirements, waiving analysis and 14-4
arguments, and waiving all notice requirements relating to the conduct of the election; and
WHEREAS, pursuant to Government Code section 53339. 7 of the Mello-Roos Act, the City Council now submits to the Annexed Territory's sole qualified elector the question of the levy of the special tax; and
WHEREAS, the City Council designates the City Clerk to serve as the Election Official for the conduct of the special election, and the City Clerk has concurred in the -election date set forth herein; and ·
WHEREAS, on April 6, 2023, at the time and place of the public hearing, the City Council afforded all interested persons for or against the annexation of territory to the District and the levy of the special tax an opportunity to present testimony and to protest against the proposed annexation and tax levy, and no protests were received; and WHEREAS, all requirements, including but not limited to any time limit, pertaining to the conduct of the special election have been waived by unanimous consent of the sole qualified elector of the Annexed Territory as authorized by the Mello -Roos Act, which executed the Owner's Petition, Waiver and Consent that is on file with the City Clerk, and with the concurrence of the City Clerk as the designated election official, the election was conducted; and
WHEREAS, the City Council has received, reviewed and hereby accepts the City Clerk's Canvass and Statement of Election Results, dated April 6, 2023, a copy of which is attached as Exhibit "A."
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO MIRAGE DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:
Section 1. Recitals.
That the Recitals set forth above are true and correct.
Section 2. Special Election.
That the question of levying the special tax within the Annexed Territory to the qualified elector, in accordance with and subject to the Mello-Roos Act is hereby submitted and that the special election shall be held on April 6, 2023, and shall be conducted as set forth herein.
Section 3. Qualified Electors.
That the City Council has previously found and determined the sole qualified elector shall be the sole landowner of the Annexed Territory, who shall have one vote for each acre or portion of an acre of land.
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Section 4. Mail or Hand-Delivered Ballot Election.
That the election may be conducted by mail or by hand -delivered ballot and that the form of the ballot, which is attached hereto as Exhibit "B," is hereby ratified.
Section 5 .. Return of Ballots.
That the City Council attests to the City Clerk's timely delivery of the ballot to the sole qualified elector, and the City Clerk's receipt and acceptance of the returned ballot prior to the start of the public hearing, and concurs the City Clerk may close the election.
Section 6. Canvass of Election.
That the City Clerk commence the canvass of the returns of the special election as soon as the election is closed, and at the conclusion of the canvass, the City Clerk shall · declare the results of the election.
Section 7. Declaration of Results.
That the City Council declares the results of the special election following the completion of the canvass of the returns and causes to be inserted into its minutes a statement of the results of the special election as ascertained by the canvass of the returns.
Section 8. Confirmation of Findings in the Resolution of Intention.
That all of the City Council's findings and determinations as set forth in the Resolution of Intention are confirmed.
Section 9. Findings Regarding Protests.
That since the written protests to the proposed annexation of territory to the District and the levy of the special tax within such territory are insufficient in number and in amount under the Mello -Roos Act, the City Council orders and determines that all such protests are hereby overruled.
Section 10. Approval of Canvass and Findings Regarding the Special Election.
That the Canvass is approved and the ballot measure on the levy of taxes has been submitted to the qualified electors within the Annexed Territory pursuant to the Resolution of Intention and the ballot measure has been passed and unanimously approved by the qualified electors of the Annexed Territory. 14-6
Section 11. Findings Regarding Prior Proceedings.
That all prior proceedings had and taken by the City Council with respect to the annexation of territory to the District are valid and in conformity with the requirements of the Mello-Roos Act.
Section 12. Findings Regarding the Annexation.
That pursuant to voter approval, the Annexed Territory is hereby declared to be fully annexed to the District to be subject to the levy of the special taxes and the special tax lien described in the Resolution of Intention, and the City Council hereby orders the annexation of said territories, to be referred to as Annexation No. 190 and authorizes the levy of a special tax therein ..
Section 13. Levy of Special Tax.
That as stated in the Resolution of Intention, except where funds are otherwise available, subject to the approval of the qualified electors, a special tax sufficient to pay the costs of additional police and fire services, secured by recordation of a continuing lien against all nonexempt real property in the District, will be levied annually in the District and that the rate and method of apportionment, and manner of collection of the special tax are specified in Exhibit "C" hereto.
Section 14. Apportionment of Tax.
That the special tax as apportioned to each parcel is based on the cost of making additional police and fire services available to each parcel, or other reasonable basis, and is not based on or upon the ownership of real property.
Section 15. Recordation of Special Tax Lien.
That the City Council directs the City Clerk or designee to record an amendment to the Notice of Special Tax Lien in the Office of the County Recorder no later than 15 days after the date this Resolution is adopted, as required by Section 3117.5 of the California Streets and Highways Code.
Section 16. Additional Actions.
That the officers, employees and agents of the City are hereby authorized and directed to take all actions and do all things which they, or any of them, may deem necessary or desirable to accomplish the purposes of this Resolution that are not inconsistent with the provisions hereof.
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Section 17. Severability.
That should any provision, section, paragraph, sentence or word of this Resolution be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this Resolution as hereby adopted shall remain in full force and effect.
Section 18. Repeal of Conflicting Provisions.
That all the provisions heretofore adopted by the City Council that are in conflict with the provisions of this Resolution are hereby repealed.
Section 19. Effective Date.
That this Resolution shall take effect upon its adoption.
Section 20. Certification.
That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions.
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PASSED, APPROVED AND ADOPTED on this 6th day of April, 2023.
ATTEST:
Kristie Ramos, City Clerk
APPROVED AS TO FORM:
Steven B. Quintanilla,
City Attorney
Richard Kite, Mayor
Exhibit A: Canvass and Statement of Election Results
Exhibit B: Form of Ballot
Exhibit C: Rate and Method of Apportionment
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EXHIBIT "A"
CANVAS AND STATEMENT OF ELECTION RESULTS
Community Facilities District No. 1
Annexation No. 190
I, Kristie Ramos, City Clerk of the City of Rancho Mirage, hereby certify:
I have p~rsonally received and assembled all ballots eligible to be cast in the special landowner election called by the Council of the City of Rancho Mirage in its Resolution No. 2023-04 on the question of levying a special tax within Community Facilities District No. 1, Annexation No. 190, held on April 6, 2023. -
In accordance with the City Council's directions set forth in said Resolution, I hereby declare the election closed.
I personally, in the presence of members of City of Rancho Mirage staff, have counted the ballots and canvassed the returns of such election, and hereby certify that the result of that count is as follows and that the following total votes cast for and against such propositions, the total votes and the percentage of "yes" votes cast are true and correct.
Total Votes that could be cast: 2
Total Votes Cast "Yes:
Total Votes Cast "No":
Total Votes Cast:
The Votes cast "Yes" equal 100% of the total votes cast.
I make this certification on this 6th day of April 2023.
ATTEST:
Kristie Ramos, City Clerk
City of Rancho Mirage
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EXHIBIT "B"
Form of Ballot
OFFICIAL BALLOT
SPECIAL TAX ANNEXATION ELECTION
Community Facilities District No. 1 -Annexation No. 190 This ballot is for the special landowner special tax annexation election. You must return this ballot, by mail or in person, in the enclosed postage paid envelope to the office of the City Clerk at 69 ~825 Highway 111, Rancho Mirage, California, 92270 no later than 11 :00 a.m . on April 6, 2023.
To Vote, mark a cross (X) in the voting square after the word "YES" or after the word "NO." All marks otherwise made are forbidden and will void the ballot. If you wrongly mark, tear, or deface this ballot, return it to the office of the City Clerk and obtain another.
Shall the City of Rancho Mirage, by and for its Mark only one:
Community Facilities District No. 1 (Police and Fire
Services) (the "CFO"), be authorized to levy a special
tax within the territory to be annexed to the CFO YES: □ pursuant to and as described in Resolution 2023-04
adopted on February 16, 2023, said tax to be levied in NO: □ accordance with the Rate and Method of
Apportionment of Special Tax, as referenced in said
resolution, and consistent with landowner's Petition,
Consent and Waiver, dated December 6, 2022?
By execution in the space provided below, you are attesting that you are the owner of record or the authorized representative of the landowner entitled to vote this ballot, and you are confirming your waiver of the time limit pertaining to the conduct of the election and any requirement for notice of election and analysis and arguments with respect to the ballot measure, as such waivers are described and permitted by Sections 53326(a) and 53327(b) of the California Government Code.
Number of Votes: 2
Property Owner: Palomino Four LLC
Mailing Address: 73838 Van Gogh Palm Desert, CA 92211
By: -----------------
(Property owner or certified representative)
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EXISTING TAX RATE AND APPORTIONMENT
The existing tax rate (revised annually) and apportionment for the tax categories identified below, as previously approved for Community Facilities District No. 1 (Police and Fire), Annexation No . 190, are as follows:
PROPERTY CATEGORIES AND MAXIMUM ANNUAL TAX
Taxable property categories and initial maximum annual taxes are as follows:
PROPERTY CATEGORY
I. RESIDENTIAL UNIT
II. COMMERCIAL & INDUSTRIAL
MAXIMUM ANNUAL TAX-FY 22/23
$357.78 per dwelling unit.
$0.96 per sq. ft. per year for developed
area.
RESIDENTIAL, COMMERCIAL AND INDUSTRIAL taxes shall be levied on all property upon recordation of final tract or parcel maps, issuance of building permits for residential units, or approval of a land use case for commercial/industrial developments.
DEFINITIONS
"Developed area" shall be that portion of the land to be developed as measured from outside walls, excluding garage, covered ways, overhangs and patios. "Dwelling unit" shall mean any building and any mobilehome which is not immediately transportable or any portion thereof which contains living facilities, including provisions for sleeping, eating, cooking and sanitation.
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EXHIBIT "C"
COMMUNITY FACILITIES DISTRICT NO. 1 (POLICE AND FIRE)
RATE AND METHOD OF APPORT IONMENT
RATE AND AMOUNT OF SPECIAL TAX
COMMUNITY FACILITIES DISTRICT NO. 1 (POLICE AND FIRE)
DETERMINATION OF MUNICIPAL SERVICE COSTS
The follow i ng procedures are used to establish the applicable specia l tax rate for a ll residentia l and commercia l /industrial property subject to the Special Tax levied in accordance with the Rate and Method of Apportionment for Community Facilities District No. 1. For the FY 2022/23 tax year, the determination of tax rate~ is reflected below.
STEP ONE: Determine .the amount of unreimbursed services costs.
Police
Fire
SERVICE
FY 2020/21
ACTUAL EXPENSES
$9,607 ,689 1
$7,070 ,517 3
1 2021 Comprehensive Annual Financial Report
FY 2020 /21
ACTUAL REVENUE
$234,260 2
$6,949, 312 4
Net FY 2020 /21
EXPENSES
$9,373,429
$121,205
2 2021 Comprehensive Annual Financial Report, Fines and Forfeitures (VICR, Parking Tickets, Fund 105 transfer only)
3 2021 Comprehensive Annual Financial Report
'Finance Department (Revenue Status Report FY2020-21)
STEP TWO : Apportion service cost to land use categories.
LAND USE PERCENT AMOUNT
SERVICE CATEGORY ATTRIBUTABLE ATTRIBUTABLE
Police 11 1 Residential 47% $4,426,875
Commercial/Industrial 53% 4,946,554
$9,373,429
Fire 121 Residential 89% $107,738
(.1)
( 2)
Commercial/Industrial 11% 13 ,467
$121,205
TOTAL $9,494,634
Police Costs: Percent attributable provided by Jennifer Henson -SCO , Riverside County Sheriff's Department, from Data Warehouse Records for January 1-December 31, 2021.
Fire Costs: Percent attributable provided by Battalion Chief Matthew Kotz, and Riverside County Fire Department/CalFire from 2021 Cove Commission Annual Fire Report.
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STEP THREE: Determine incremental cost of additional services.
SERVICE LAND USE INVENTORY NET
COSTS
INCREMENTAL
COSTS
Police Residential 14,575 units Ca>
Commercial/Industrial 5,871 ,148 sq.ft.Cb>
$4 ,426,875
4 ,946,554
$303.73
$0.84
Fire Residential 14 ,575 units Ca > $107,738
Commercial/Industrial 5 ,871,148 sq.ft.Cb) 13,467
c~ Source: California Department of Finance, E-5 City Population & Housing Estimates, January 1, 2022.
Cb> Source: Based on total commercial square footage as of 3/31/22.
Total Residential is $311.12; total Commercial is $0.84 STEP FOUR: Compare Amount Against CPI Limitat~ons.
(The Community Facilities District may not increase the fee higher than two times the annual Consumer Price Index )
FACTOR
1) Initial Rate
2) Base CPI (9/90)
3) Current CPI (1/22)
4) Percent Increase
5) Allowed Increase
(2x)
6) Proposed Tax
(without Administrative
Charge)
7) Percent Increase
8) Within Allowable
Increase?
AMOUNT FACTOR UNIT/ SOURCE
$129.96 Residential/unit (September 1990)
.38 Commercial/Sq. Ft. (September 1990)
50.258 Riverside-San Bernardino-Ontario--
(All Urban Consumers)
118. 963
136.7%
273.4%
$311.12 Per residential unit
0.84 Per commercial square foot
139.4% Residential
121.1% Commercial
Yes Residential
Yes Commercial
STEP FIVE: Determine If Collection Is Required for Prior Fiscal Year (The District may collect unrecovered costs from a prior fiscal year provided that the Proposed Assessment without the Administrative Charge does not exceed the allowable increase of two times the annua l Consumer Price Index.)
NOT APPLICABLE
$7.39
$0.00
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STEP SIX: Identify Administrative Charges and Offsetting Property Tax
LAND INCREMENTAL ADMINISTRATIVE TOTAL PROPERTY NET SERVICE USE COST CHARGES (15%) ASSESSMENT TAX COST
Residential $311.12/unit $46.66 $357.78 To be To be
determined determined
Commercial $0.84/sq.ft $0.12 $0. 96 To be To be
determined determined
At the conclusion of STEP SIX, the amount of reimbursement can be determined and assessed annually to each parcel owner.
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