HomeMy WebLinkAboutItem No. 07 - Declaring Intent to Annex Territory CFD 2019-1
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Consent Calendar
City of San Bernardino
Request for Council Action
Date: April 1, 2020
To: Honorable Mayor and City Council Members
From: Teri Ledoux, City Manager
By:Kris Jensen, Director of Public Works
Subject: Resolution Declaring Intent to Annex Territory CFD 2019-1,
Annexation 2, Tax Zone 3
Recommendation
Adopt Resolution No. 2020-57 of the Mayor and City Council of the City of San
Bernardino, California, declaring its intention to annex territory into Community Facilities
District No. 2019-1 (Maintenance Services) of the City of San Bernardino, adopting a
map of the area to be proposed (Annexation No. 2) and authorizing the levy of special
taxes therein.
Background
On June 5, 2019, the Mayor and City Council approved Resoluti on No. 2019-81
establishing Community Facilities District No. 2019-1 (Maintenance Services) of the City
of San Bernardino (the "CFD No. 2019-1" or "District") for the purpose of levying special
taxes on parcels of taxable property to provide certain servic es which are necessary to
meet increased demands placed upon the City.
Discussion
On July 17, 2019, the Mayor and City Council adopted Resolution No. 2019 -178,
establishing CFD No. 2019-1 pursuant to the provisions of the Mello-Roos Community
Facilities Act of 1982 (“Act”). CFD No. 2019-1 allows for the levy of special taxes on
parcels of taxable property for the purpose of providing certain services which are
necessary to meet increased demands placed by development upon the City.
Development projects are subject to conditions of approval that require projects to
form/annex a maintenance district. These districts apply an annual fee or special tax
upon properties within the District which provide the revenue to offset the cost of
maintenance of the public improvements necessary to serve the development. The
Developer has agreed to initiate and conduct the CFD annexation proceedings pursuant
to the Act. To that end, the Developer has submitted a "Consent and Waiver" form,
which is on file in the City Clerk's office that authorizes the City to (1) hold the election
and declare election results; (2) shorten election time requirements; (3) waive analysis
and arguments; (4) waive all notice requirements relating to the conduct of the election
immediately following the public hearing.
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The public facilities and services proposed to be financed within the territory to be
annexed to the District are the following:
1. Maintenance of median landscaping and other public improvements installed
within the public rights-of-way; and
2. City and County costs associated with the setting, levying and collection of the
special tax, and in the administration of the District including the contract
administration and for the collection of reserve funds.
The proposed development includes approximately 56 gross acres of vacant industrial
property to include approximately 1,065,000 square feet of industrial high cube logistics
warehouse building. The property owner of this site is GWS#4 Development, LLC,
more commonly known as Hillwood. This development will become a new Tax Zone
(Tax Zone No. 3) within CFD No. 2019-1, as shown in the boundary map and included
in the Resolution of Intention as Exhibit “D”. In order to annex into CFD No. 2019 -1, a
Resolution of Intention to annex property must be approved to identify the facilities to be
maintained and establish the maximum special tax for this Tax Zone. The Resolution of
Intention shall also set the date and time for the public hearing.
The rate and method of apportionme nt of the special tax fos Tax Zone, (Tax Zone No.
3), is included as Exhibit “C” to the Resolution of Intention. The maximum annual
special tax for this development has been calculated to be $608 per acre for FY
2020/21. If the maximum allowable annual fee were levied, the revenue generated
would be $33,789 per year.
In order to annex property to CFD No. 2019 -1 pursuant to the provisions of California
Government Code Section 53311 et seq., the City must adopt a series of three
statutorily required Resolutions and an Ordinance which are summarized below.
Resolution declaring City intent to annex territory to Community Facilities District
No. 2019-1 including the boundary of the area to be annexed and the rate and
method of apportionment of special taxes within the annexation area (the special
tax applies only to properties within the annexation area).
Resolution calling an election to submit to the qualified electors the question of
levying a special tax within the area proposed to be annexed to the District.
Resolution declaring the results of the election and directing the recording of the
notice of special tax lien.
Amend the Ordinance and order the levy and collection of special taxes in the
District.
With the adoption of the proposed Resolution of Intention, the Public Hearing would be
scheduled for May 6, 2020.
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2020-2025 Strategic Key Targets and Goals
Formation of this CFD is consistent with Key Target No 4: a. Secure a long-term
revenue source. Funding from district assessments will create sustainable financial
support for ongoing maintenance of landscape and infrastructure associated with the
district location.
Fiscal Impact
The individual property owners in the CFD will be responsible for annual payments of
special taxes. Upon full completion of the development, it is estimated that there will be
an annual collection of special tax revenues of approximately $33,789 to be used to pay
for maintenance costs.
On March 1 of each year, every taxable unit for which a building permit has been issued
within the boundaries of the CFD will be subject to the special tax for the ensuing Fiscal
Year. If the anticipated costs of maintaining the facilities in any given Fiscal Year, prior
to buildout of the project, exceeds the special tax revenue s available from parcels for
which building permits have been issued, then the special tax may also be applied to
property within recorded final subdivision maps, as well as other undeveloped property
within the boundaries of the CFD.
All costs associated with annexation into the CFD have been borne by the Developer.
By annexing into the CFD, the costs of maintaining improvements located within the
development will be financed through special taxes levied on the parcels within CFD
No. 2019-1 and not through the City’s General Fund.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino adopt
Resolution No. 2020-57, declaring its intention to annex territory into Community
Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino,
adopting a map of the area to be proposed (Annexation No. 2) and authorizing the levy
of special taxes therein.
Attachments
Attachment 1 Resolution; Exhibit A - Description of Territory; Exhibit B -
Description of Authorized Services; Exhibit C - Rate and Method of
Apportionment; Exhibit D - Annexation and Potential Annexation
Boundary Maps; Exhibit E - Signed Petition, Waiver and Consent;
Exhibit F - Notice of Public Hearing; Exhibit G - Special Election
Ballot
Attachment 2 Project/Location Map
Attachment 3 CFD Landscape Maintenance Exhibit
Ward: 5
On June 5, 2019, the City Council adopted Resolution No. 2019 -81, a Resolution of
Intention to form Community Facilities District No. 2019-1 (Maintenance Services) of the
City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the
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“Mello-Roos Community Facilities Act of 1982”.
On July 17, 2019, Resolution No. 2019-178 was adopted establishing Community
Facilities District No. 2019-1; Resolution No. 2019-179 was adopted declaring election
results for Community Facilities District No. 2019-1; and first reading of Ordinance No.
MC-1522 levying special taxes to be collected during FY 2019 -20 to pay annual costs of
maintenance, services and expenses with respect to Community Facilities District No.
2019-1.
On August 7, 2019, final reading of Ordinance No. MC -1522 levying special taxes to be
collected during FY 2019-20 to pay annual costs of maintenance, services and
expenses with respect to Community Facilities District No. 2019-1.
Resolution No. 2020-57
RESOLUTION NO. 2020-57
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF
THE CITY OF SAN BERNARDINO, CALIFORNIA,
DECLARING ITS INTENTION TO ANNEX TERRITORY
INTO COMMUNITY FACILITIES DISTRICT NO. 2019-1
(MAINTENANCE SERVICES) OF THE CITY OF SAN
BERNARDINO, ADOPTING A MAP OF THE AREA TO BE
PROPOSED (ANNEXATION NO. 2) AND AUTHORIZING
THE LEVY OF A SPECIAL TAXES THEREIN
WHEREAS, pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”),
on June 5, 2019, the City Council (the “City Council”) of the City of San Bernardino (the
“City”) approved Resolution No. 2019-081 establishing Community Facilities District No. 2019-
1 (Maintenance Services) of the City of San Bernardino, County of San Bernardino, State of
California, defined the "CFD No. 2019-1", for the purpose of levying special taxes on parcels of
taxable property therein for the purpose of providing certain services which are necessary to
meet increased demands placed upon the City; and
WHEREAS, the City Council has received a written instrument from the landowner in
the CFD No. 2019-1 to initiate and conduct proceedings pursuant to the Act, to annex territory to
CFD No. 2019-1 and consenting to the shortening of election time requirements, waiving
analysis and arguments, and waiving all notice requirements relating to the conduct of the
election; and
WHEREAS, the City Council has been advised that certain property owners have
requested that the area shown in Exhibit D be annexed territory to the boundaries of CFD No.
2019-1, that a rate and method of apportionment of the special tax to be levied therein be
established;
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF
THE CITY OF SAN BERNARDINO, ACTING EX OFFICIO AS THE LEGISLATIVE
BODY OF COMMUNITY FACILITIES DISTRICT 2019-1 (MAINTENANCE
SERVICES) OF THE CITY OF SAN BERNARDINO, DETERMINE AND ORDER AS
FOLLOWS:
Section 1. Intent to Annex. The City Council hereby declares that it proposes and intends to
conduct proceedings pursuant to Article 3.5 for the annexation to the Community Facilities
District of the territory described in Exhibit A attached hereto. The City Council determines that
the public convenience and necessity require that such territory be annexed to the Community
Facilities District.
Section 2. Name of the Community Facilities District. The name of the existing community
facilities district is known as “Community Facilities District No. 2019-1 (Maintenance
Services)”.
Resolution No. 2020-57
Section 3. Description of Territory Proposed to be Annexed, Annexation Map. The territory
proposed to be annexed are included within the boundaries within which property may annex to
CFD No. 2019-1 and are more particularly described and shown on that certain map entitled
“Boundaries – Potential Annexation Area Community Facilities District No. 2019-1
(Maintenance Services) of the City of San Bernardino, County of San Bernardino, State of
California,” as recorded on June 6, 2019 in Book 88 of Maps of Assessment and Community
Facilities District, Page 33, and as Instrument No. 2019-0185395 in the official records of the
County of San Bernardino. The territory proposed to be annexed to the CFD No. 2019 -1 is
described in Exhibit A attached hereto and by this reference made a part hereof. Such territory is
also shown and described on the map thereof entitled "Annexation Map No. 2, Community
Facilities District No. 2019-1 (Maintenance Services), City of San Bernardino, County of San
Bernardino, State of California," which is on file with the City Clerk (the "Annexation Map")
and attached hereto as Exhibit D.
Section 4. Description of Authorized Services. The services proposed to be financed by
CFD No. 2019-1 (the “Services”) are described in Exhibit B attached hereto. The cost of
providing the Services includes “incidental expenses,” which include costs associated of CFD
No. 2019-1, determination of the amount of special taxes, collection or payment of special taxes,
or costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2019-1.
The Services authorized to be financed by CFD No. 2019-1 are in addition to those currently
provided in the territory of CFD No. 2019 -1 and do not supplant services already available
within that territory.
Section 5. Levy of Special Taxes. Except where funds are otherwise available, a special tax
sufficient to pay the costs of the Services (including incidental expenses), secured by recordation
of a continuing lien against all nonexempt real property in CFD No. 2019-1, will be levied
annually within CFD No. 2019-1. The Rate and Method of Apportionment, and manner of
collection of the special tax are specified in Exhibit C.
Section 6. Adoption of Annexation Map. Pursuant to Section 3110.5 of the Streets and
Highways Code, the City Council adopts the Annexation Map as the map of the area proposed to
be annexed to the CFD No. 2019-1. Pursuant to Section 3111 of said Code, the City Clerk shall
file the original of the Annexation map in his office and shall file a copy of the Annexation Map
with the County Recorder of the County of San Bernardino no later than 15 days prior to the date
of the hearing specified in Section 7 hereof.
Section 7. Public Hearing. The City Council hereby fixes 7:00 p.m., or as soon thereafter as
practicable, on Wednesday, May 6, 2020, in the Council Chambers, 555 W. 6th Street, San
Bernardino, California 92410, as the time and place when and where the City Council will
conduct a public hearing on the proposed annexation of the said territory to the CFD No. 2019-1.
Section 8. Notice of Public Hearing. The City Clerk is hereby directed to publish, or cause
to be published, a notice of said public hearing, in substantially the form attached hereto as
Exhibit F, one time in a newspaper of general circulation published in the area of CFD No. 2019-
1. The publication of said notice shall be completed at least seven days prior to the date herein
fixed for said hearing. Said notice shall contain the information prescribed by Section 53322 of
the Act.
Resolution No. 2020-57
Section 9. Mailing Ballots. In anticipation of its action on Wednesday May 6, 2020 to call
the election on the annexation for the same date, pursuant to waiver of election time limits from
the landowners, the City Council hereby authorizes the City Clerk to mail to each landowner in
the territory proposed to be annexed to the CFD No. 2019-1 a ballot in substantially the form set
forth in Exhibit G hereto. A copy of the waiver and consent form signed by the property owner is
attached hereto as Exhibit E and incorporated herein by this reference.
APPROVED and ADOPTED at a regular meeting of the City Council of the City of San
Bernardino, California, this 1st day of April, 2020
John Valdivia, Mayor
City of San Bernardino
Attest:
Genoveva Rocha, CMC, Acting City Clerk
Approved as to form:
Sonia Carvalho , City Attorney
Resolution No. 2020-57
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO) ss
CITY OF SAN BERNARDINO )
I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true
copy of Resolution No. 2020-___, adopted at a regular meeting held on the ___ day of _______
2020 by the following vote:
Council Members: AYES NAYS ABSTAIN ABSENT
SANCHEZ _____ _____ _______ _______
IBARRA _____ _____ _______ _______
FIGUEROA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
NICKEL _____ _____ _______ _______
RICHARD _____ _____ _______ _______
MULVIHILL _____ _____ _______ _______
WITNESS my hand and official seal of the City of San Bernardino this ___ day of
____________ 2020.
Genoveva Rocha, CMC, Acting City Clerk
PROJECT MAP CFD NO. 2019-1 (MAINTENANCE SERVICES) ANNEXATION NO. 2 - TAX ZONE 3