Agenda Item: 1
CITY OF SANTA CLARITA
AGENDA REPORT
PUBLIC HEARINGS
CITY MANAGER APPROVAL:
DATE: July 14, 2026
SUBJECT: ANNEXATION TO AND MODIFICATION OF CFD NO. 2020-1 (COOPER STREET PARKING STRUCTURE) AND TRANSFER OF
PARKING STRUCTURE OPERATION AND MAINTENANCE TO
THE CITY
DEPARTMENT: Administrative Services
PRESENTER: Brittany Houston
RECOMMENDED ACTION
City Council:
1. Conduct a public hearing on the proposed annexation and modifications to the City of Santa Clarita Community Facilities District No. 2020-1 (Cooper Street Parking Structure) (the “Maintenance CFD”), including the annexation of certain parcels, the removal of the existing parcel and modifications to the rate and method of apportionment.
2. Adopt a resolution determining the validity of prior proceedings relating to the annexation of property into the Maintenance CFD, and considering certain modifications to the Maintenance CFD and calling a special election.
3. Open and review ballots, and declare results.
4. If the proposition passes with a two-thirds vote:
(a) adopt a resolution canvassing the results of the election held; and
(b) adopt a resolution approving certain modifications, annexing property authorizing the levy of a special tax within the Maintenance CFD, and approving certain agreements relating to the transfer of the operation and maintenance of the Cooper Street Parking Structure to the City.
5. City Council approve and authorize the City Manager or designee to execute a Termination of Parking Management Services Agreement and Settlement Agreement, Amendment and
Restatement to Parking Spaces Easement Agreement, and Termination of Easement Agreement for Solar Facilities and Community Identification Signage, associated with the annexation and modification of the Maintenance CFD, subject to City Attorney review.
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) 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.
In October 2020, following final review by the City’s Public Works department, the City purchased the Parking Structure from the master developer of the Development for $15,000,000 using the proceeds of the Bonds pursuant to the Funding and Acquisition Agreement approved on April 12, 2016. Pursuant to the conditions for development, the original intent was for the POA to pay 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.
Due to financial hardship, the POA has 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, 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.
Failure of the POA to manage the Parking Structure means that a portion of the funding source for the maintenance of the Parking Structure will come from the backup maintenance special tax from the Vista Canyon CFD (subject to its maximum tax permitted as outlined in its approved Rate and Method of Apportionment) with the remaining source of funds from the Maintenance CFD.
To spread out the obligation of the current special taxes being assessed for maintenance, staff recommends the current sole POA parcel that is subject to the maintenance CFD special tax be removed, and three additional parcels 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.
On June 23, 2026, the Council adopted a resolution of intention to annex and consider the modifications to the Maintenance CFD. Scheduled for this meeting is a public hearing. Provided there is no majority protest, the annexation and changes will be the subject of an election. The landowners have waived election time lines, so an election may be held on this same evening to eliminate the POA parcel, annex three parcels, modify the rate and method, and authorize the levy of an annual special tax on the three parcels. Should the proposition pass with a two-thirds vote from the qualified voters, the City may adopt a resolution determining the validity of proceedings relating to the annexation and modifications to the Maintenance CFD and the Maintenance CFD may levy the annual special tax pursuant to the Amended RMA.
The resolution will also approve agreements relating to the transfer of operation and maintenance of the Parking Structure from the POA to the City, including the following:
Termination of Parking Management Services Agreement for Parking Structure 1 and Settlement Agreement: This document provides terms and conditions for the agreement termination which previously provided for the POA to manage, operate, and maintain the Parking Structure, and returns that responsibility to the City. The termination provides an accounting of funds to date and outlines settlement terms for delinquent special taxes. Total delinquent special taxes owed to the City, including penalties and interest as of July 1, 2026, is $1,514,380. As part of the settlement agreement, $976,320 of special taxes, penalties, and interest are proposed to be waived, resulting in a settlement owed to the City of $770,000. The $770,000 settlement will be paid in four equal installments the first of each month beginning August 1, 2026 and ending November 1, 2026. The settlement will fund operating and maintenance costs for FY 2026-27 and ensure the City has sufficient fund balance available July 1, 2027, to fund FY 2027-28 costs.
The future funding for the operation and maintenance of the Parking Structure will be from backup special taxes of the Vista Canyon CFD, the modified Maintenance CFD, and the easement owner of the 84 private spaces.
Amendment and Restatement to Easement Agreement for Parking Spaces: This document amends the agreement which provided for Vista Canyon Ranch to purchase from the City certain perpetual easements at the Parking Structure for the use of 84 parking spaces required for residential parking for adjacent multi-family uses at a purchase price equal to the construction cost of those 84 spaces. The Amendment reflects the transfer of operation and maintenance of the Parking Structure from the POA as manager to the City, but keeps intact the grant of a perpetual easement of the 84 private spaces to Vista Canyon Ranch and the responsibility of Vista Canyon Ranch to pay for the operation and maintenance of such spaces. The document will be executed by the City as grantor and Vista Canyon Ranch as grantee.
Termination of Easement Agreement for Solar Facilities and Community Identification Signage:
This document provides for the termination of the agreement in which the City granted to Vista Canyon Ranch certain easements at the Parking Structure allowing Vista Canyon Ranch to construct, operate, and maintain solar facilities on the Parking Structure. The agreement will be executed by the City and Vista Canyon Ranch and recorded with the County Recorder.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
All expenses associated with the above changes to the Maintenance CFD will be part of the budget for the Maintenance CFD. As a result of the City maintaining the parking structure, maintenance expenditures are anticipated to decrease by approximately $160,000 annually, which in turn reduces annual special taxes for property owners.
The $770,000 settlement for delinquent special taxes will fund operating and maintenance costs for FY 2026-27 and ensure the City has sufficient fund balance available July 1, 2027, to fund FY 2027-28 costs.
Upon approval of the recommended action, the total estimated $335,910 annual cost to operate and maintain the Cooper Street Parking Structure will be funded by: 1) the CFDs for the public share (529 parking spaces or 86 percent) via the Maintenance CFD special tax ($207,190) and the backup Vista Canyon CFD maintenance special tax ($106,033); and 2) Vista Canyon Ranch for its private share (84 parking spaces or 14 percent) of operations and maintenance ($22,687).
ATTACHMENTS
Notice of Public Hearing
Resolution Determining the Validity of Prior Proceedings and Calling a Special Election - CFD No. 2020-1 (Cooper Street Parking Structure)
Resolution Canvassing Election - CFD No. 2020-1 (Cooper Street Parking Structure) Resolution of Annexation and Change - CFD No. 2020-1 (Cooper Street Parking Structure) Amended CFD No. 2020-1 (Cooper Street Parking Structure) Report (available in the City Clerk's Reading File)
Termination of Parking Management Services Agreement and Settlement Agreement (available in the City Clerk's Reading File)
Amended and Restated Easement Agreement for Parking Spaces (available in the City Clerk's Reading File)
Termination Agreement for Solar Facilities and Community Identifcation Signage (available in the City Clerk's Reading File)