Agenda Item: 8
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: June 23, 2026
SUBJECT: ANNEXATION TO AND MODIFICATION OF CFD NO. 2020-1 (COOPER STREET PARKING STRUCTURE)
DEPARTMENT: Administrative Services
PRESENTER: Brittany Houston
RECOMMENDED ACTION
City Council adopt a resolution declaring its intention to annex certain parcels into the City of Santa Clarita Community Facilities District No. 2020 -1 (Cooper Street Parking Structure) and consider certain modifications to the District.
BACKGROUND
In 2016, the City of Santa Clarita (City) formed a community facilities district designated “City of Santa Clarita Community Facilities District No. 2016-1 (Vista Canyon)” (the “Vista Canyon CFD”), for the approved Vista Canyon development located at the end of Lost Canyon Road near Sand Canyon (the “Development”). The Vista Canyon CFD covers only the apartment and commercial use parcels within the Development.
In February 2020, the Vista Canyon CFD issued its first series of bonds (the “Bonds”) secured by special taxes within the Vista Canyon CFD to fund (i) construction of the City-owned Cooper Street Parking Structure (the “Parking Structure”), with 84 dedicated spaces for the adjacent apartment complex and 529 public parking spaces, and (ii) a portion of the Vista Canyon Transit Center. The Vista Canyon CFD also contained a backup maintenance special tax on the apartments and commercial property if the Property Owner Association of the Development (the “POA”) failed to maintain the Parking Structure.
Pursuant to the conditions for development, the POA was to pay for the cost of operating and maintaining the Parking Structure. On October 21, 2020 the City entered into a Parking Management Services Agreement with the POA (the “Management Agreement”). In order to maintain the tax-exempt nature of the Bonds and have the Management Agreement be considered a “qualified management contract” under Internal Revenue Service (IRS) rules, tax counsel for the City’s bond counsel required the formation of a new community facilities district
and the imposition of a services special tax to pay the Manager under the Management Agreement and other costs associated with the operation and maintenance of the Parking Structure. In accordance with the Management Agreement, on January 26, 2021, the “City of Santa Clarita Community Facilities District No. 2020-1 (Cooper Street Parking Structure)” (the “Maintenance CFD”) was formed for the purpose of funding the operation and maintenance of the Parking Structure. Currently a POA-owned property is the only parcel subject to the Maintenance CFD special tax.
Due to financial hardship, the POA has recently failed to adequately manage and maintain the Parking Structure. To ensure critical maintenance is performed consistently, the City recommends terminating the Management Agreement with the POA at the next City Council meeting, resulting in the City assuming management. Benefits of the City’s management are lower annual maintenance costs, and in turn, lower annual special taxes for property owners.
Estimated annual savings are approximately $160,000.
To spread out the obligation of the current special taxes being assessed for maintenance, staff recommends the sole POA property be removed from the CFD and three additional properties owned by the developer be annexed into the Maintenance CFD. A petition, consent and waiver for such actions has been received by the applicable property owners. Under an Amended and Restated Rate and Method of Apportionment (Amended RMA), the three annexing parcels will be subject to the special tax based on the management budget for the Parking Structure less any amounts received from the backup maintenance special tax. The special tax will be levied annually by the City pursuant to the RMA and used to pay for the operation and maintenance of the Parking Structure.
The formal City Council approval process to remove the POA parcel, annex three parcels, modify the RMA and remove the POA from management of the facility requires two City Council meetings. This first City Council meeting tonight recommends adopting a resolution of intention to modify and annex (ROI), declaring the City’s intention to consider these changes.
The landowners have waived election time lines, so an election may be held as soon as July 14, 2026 to eliminate the POA parcel, annex three parcels, modify the rate and method, and authorize the levy of the annual special tax.
If approved, the second City Council meeting recommends holding a public hearing, conducting a special mailed ballot election, and adopting a resolution of annexation and change. Provided there is no majority protest, the annexation and changes will be the subject of an election. Should the proposition pass with a two-thirds vote from the qualified voters, the City may adopt a resolution of annexation and change and the Maintenance CFD may levy the annual special tax pursuant to the Amended RMA. In addition, the following three agreements will be terminated/revised to reflect these changes: 1) Termination of Management Agreement and Settlement Agreement 2) Amendment to Parking Spaces Acquisition Agreement, and 3) Termination of Easement Agreement for Solar Facilities and Community Identification Signage Agreement.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
Upon the City formally taking over maintenance of the parking structure, maintenance expenditures are anticipated to decrease by approximately $160,000 annually, which will in turn reduce annual special taxes for property owners. The estimated $315,000 annual cost for the Cooper Street Parking Structure’s operations and maintenance of public parking spaces will be funded by the amended Maintenance CFD special tax ($210,000) and the backup maintenance special tax from the Vista Canyon CFD ($105,000).
ATTACHMENTS
Resolution Declaring Intention to Annex and Modify CFD NO. 2020-1 (Cooper Street Parking Structure), including Amended and Restated Rate and Method of Apportionment Petition, Consent to Annex, and Waivers (available in the City Clerk's Reading File)