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CC Resolution 11608RESOLUTION NO. ii6os A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL INTENDING TO ESTABLISH A COMMUNITY FACILITIES DISTRICT CITY OF CAMPBELL COMMUNITY FACILITIES DISTRICT NO. 2 (Public Services) WHEREAS, under the Mello-Roos Community Facilities Act of 1982, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing at Section 53311, of the California Government Code (the "Act"), this Council is authorized to establish a Community Facilities District and to act as its legislative body; WHEREAS, this Council, having received petitions from the owners of not less than 10% of the area of land proposed to be included in the proposed Community Facilities District, now desires to proceed with the establishment of such Community Facilities District to finance the annual operation, maintenance and servicing of stormwater facilities required to meet the demands of development of lands in the City; and WHEREAS, pursuant to Section 53339.2 of the Act, this Council further desires and hereby determines that it is in the public convenience and necessity to undertake proceedings to provide for future annexation of territory to the proposed Community Facilities District. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Campbell as follows: 1. Authority. This Council proposes to conduct proceedings to establish a Community Facilities District pursuant to the Act. 2. Name of Community Facilities District; Name of Future Annexation Area. The name proposed for the Community Facilities District is "City of Campbell Community Facilities District No. 2 (Public Services)" (the "CFD"). The name proposed for the territory proposed to be annexed into the CFD in the future is "City of Campbell Community Facilities District No. 2 (Public Services) (Future Annexation Area)" (the "Future Annexation Area"). 3. Boundaries Described. The proposed boundaries of the CFD and the Future Annexation Area are as shown on the map on file with the City Clerk, which boundaries are hereby preliminarily approved and to which map reference is hereby made for further particulars. The City Clerk is hereby directed to record, or cause to be recorded, the map of the boundaries of the CFD and the Future Annexation Area in the office of the County Recorder within 15 days of the date of adoption of this Resolution. Parcels within the Future Annexation Area shall be annexed to the CFD only with the unanimous approval (each, a "Unanimous Approval") of the owner or owners of each parcel or parcels at the time that parcel or those parcels are annexed, without any requirement for further public hearings or additional proceedings. 4. Services. The type of services proposed to be financed by the CFD and the Future Annexation Area and pursuant to the Act shall consist of those listed in Exhibit A hereto and hereby incorporated herein (the "Services"). The Council hereby determines that the Services are necessary to meet increased demands for such services placed upon local agencies as the result of development occurring within the area of the CFD and the Future Annexation Area. The Services are in addition to those provided in the territory of the CFD and the Future Annexation Area as of the date hereof and will not supplant services already available within the territory of the CFD and the Future Annexation Area as of the date hereof. The City intends to provide the Services on an equal basis in the original territory of the CFD and, when it has been annexed to the CFD, the Future Annexation Area. 5. Special Tax. Except to the extent that funds are otherwise available to the CFD to pay for the Services, a special tax (the "Special Tax") sufficient to pay the costs thereof, secured by recordation of a continuing lien against all non-exempt real property in the CFD, will be levied annually within the CFD, and collected in the same manner as ordinary ad valorem property taxes, or in such other manner as this Council or its designee shall determine, including direct billing of the affected property owners. The proposed rate and method of apportionment of the Special Tax among the parcels of real property within the CFD in sufficient detail to allow each landowner within the proposed CFD to estimate the maximum amount such owner will have to pay, are described in Exhibit B attached hereto and hereby incorporated herein (the "Rate and Method"). This Council hereby finds that the provisions of Section 53313.6, 53313.7 and 53313.9 of the Act (relating to adjustments to ad valorem property taxes and schools financed by a community facilities district) are inapplicable to the proposed CFD. As required by Section 53339.3(d) of the Act, the Council hereby determines that the special tax proposed to pay for Services to be supplied within the Future Annexation Area shall be equal to any special tax levied to pay for the same Services in the existing CFD, except that a higher or lower tax may be levied within the Future Annexation Area to the extent that the actual cost of providing the Services in the Future Annexation Area is higher or lower than the cost of providing those Services in the existing CFD. In so finding, the Council does not intend to limit its ability to levy a special tax within the Future Annexation Area to provide new or additional services beyond those supplied within the existing CFD. 6. Exempt Property. Except as may otherwise be provided by law or by the rate and method of apportionment of the Special Tax for the CFD, all lands owned by any public entity, including the United States, the State of California, the County and/or the City, or any departments or political subdivisions thereof, shall be omitted from the levy of the Special Tax to be made to cover the costs and expenses of the Services and the CFD. In the event that a portion of the property within the CFD shall become for any reason exempt, wholly or in part, from the levy of the Special Tax, this Council will, on behalf of the CFD, increase the levy to the extent necessary upon the remaining property within the CFD which is not exempt in order to yield the annual expenses of the CFD, if any, subject to the provisions of the rate and method of apportionment of the Special Tax. 7. Election and Unanimous Approval. The levy of the Special Tax in the CFD shall be subject to the approval of the qualified electors of the CFD at a special election. The proposed voting procedure shall be by mailed or hand-delivered ballot among the landowners in the proposed CFD, with each owner having one vote for each acre or portion of an acre such owner owns in the CFD. A special tax shall be levied in the Future Annexation Area only with the Unanimous Approval of the owner or owners of each parcel or parcels at the time that parcel or those parcels are annexed, without any requirement for further public hearings or additional proceedings. 8. CFD Report. The City Manager (or deputy or designee thereof) is hereby directed to study the proposed Services and to make, or cause to be made, and file with the City Clerk a report in writing (the "CFD Report"), which shall be a part of the record of the public hearing hereinafter specified and which report shall present the following: (a) A description of the Services that will be required to adequately meet the needs of the CFD. (b) An estimate of the fair and reasonable cost of the Services and incidental expenses in connection therewith, and all other related costs. 9. Public Hearing. Will be held on Tuesday, November 19, 2013, at 7:30 p.m. or as soon as possible thereafter, in the City Hall, Council Chambers, 70 North First Street, Campbell, California, and the same are hereby appointed and fixed as the time and place when and where this Council, as legislative body.for the CFD, will conduct a public hearing on the establishment of the CFD and the Future Annexation Area and consider and finally determine whether the public interest, convenience and necessity require the formation of the CFD and the Future Annexation Area and the levy of the Special Tax. 10. Notice of Hearing. The City Clerk is hereby directed to cause notice of the public hearing to be given by publication one time in a newspaper published in the area of the CFD and the Future Annexation Area. The publication shall be completed at least 7 days before the date of the public hearing specified above. The City Clerk may also cause notice of the hearing to be given to each property owner within the CFD by first class mail, postage prepaid, to each such owner's address as it appears on the most recent tax records of the County or as otherwise known to the City Clerk to be correct. Such mailing shall be completed not less than 15 days before the date of the public hearing. The notice of the public hearing shall be substantially in the form specified in Section 53322 of the Act, with the form summarizing the provisions hereof hereby specifically approved. 11. Appointment of Legal Counsel; Special Tax Consultant. The City Council hereby appoints (i) Jones Hall, A Professional Law Corporation, as legal counsel to the City in connection with formation of the CFD, (ii) Francisco & Associates, Inc. as special tax consultant to the City in connection with formation of the CFD. The City Manager is hereby authorized to execute a retainer agreement with each of these firms in substantially the form and substance of the agreement on file with the City Clerk. 12. Effective Date. This resolution shall take effect upon its adoption. PASSED AND ADOPTED this 15~h day of October, 2013, by the following roll call vote: AYES: COUncllmemberS: Kotowski, Cristina, Baker, Waterman, Low NOES: Councilmembers: None ABSENT: Councilmembers: None ABSTAIN: Councilmembers: None APPROVED: C Evan D. Low, Mayor ATTEST: An Bybee, City CI k EXHIBIT A CITY OF CAMPBELL Community Facilities CFD No. 2 (Public Services) DESCRIPTION OF SERVICES The captioned Community Facilities District will finance, in whole or in part, the following public services ("services' shall have the meaning given that term in the Mello-Roos Community Facilities Act of 1982), including but not limited to: • Annual operation, maintenance and servicing, including repair and replacement, of the storm water treatment facilities, including but not limited to, low impact development storm water treatment facilities, bio-retention basins and associated facilities which service the properties located within the boundaries of the CFD. The annual operation, maintenance and servicing of the low impact development storm water treatment facilities, bio-retention basins and associated facilities may also include, but are not limited to, field inspections, record keeping, cost of permits and regulatory fees, environmental mitigation and/or monitoring, annual reporting, vegetation management, removal of silt, sediment, trash and debris from the treatment areas, bio-retention basins and City catch basins, and any other associated services which are needed to operate, maintain and service, including repair and replacement, of the storm water treatment facilities; and • Costs associated with the setting, IeVy, and collection of the Special Taxes; and • Contingency costs, including a contingency and/or reserve for operating and capital reserves, as required by the City. Exhibit A Page 1 EXHIBIT B CITY OF CAMPBELL COMMUNITY FACILITIES DISTRICT N0.2 (PUBLIC SERVICES) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX Special Taxes applicable to each Assessor's Parcel in the City of Campbell Community Facilities District No. 2 (Public Services) shall be levied and collected according to the tax liability determined by the Administrator through the application of the appropriate amount or rate for Taxable Property, as described below. All of the property in CFD No. 2, unless exempted by law or by the provisions of Section E below, shall be taxed for the purposes, to the extent, and in the manner herein provided, including property subsequently annexed to CFD No. 2, unless a separate Rate and Method of Apportionment of Special Tax is adopted for the annexation area. A. DEFINITIONS The terms hereinafter set forth have the following meanings "Accessory Unit" means a second residential unit of limited size (e.g., granny cottage, second unit) that shares a Parcel with asingle-family detached unit. "Acre" or "Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable Final Map or other recorded County parcel map. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311), Division 2, of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2: the costs of computing the Special Tax and preparing the annual Special Tax collection schedules (whether by the City or any designee thereof or both); the costs of collecting the Special Taxes; the costs to the City, CFD No. 2, or any designee thereof of complying with City, CFD No. 2, or obligated persons disclosure requirements associated with the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries, protests, or appeals regarding the Special Taxes; and the City's annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2 for any other administrative purposes of CFD No. 2, including attorney's fees, costs associated with annexations to CFD No. 2, and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Administrator" means an official of the City, or any designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Tax. "Assessor's Parcel" or "Parcel" means a lot or parcel shown on an Assessor's Parcel Map with an assigned Assessor's Parcel Number. "Assessor's Parcel Map" means an official map of the County Assessor designating parcels by Assessor's Parcel Number. "Assessor's Parcel Number" or "APN" means a unique number assigned to an Assessor's Parcel by the County Assessor for purposes of identifying a property. "Authorized Services" means the public services authorized to be funded by CFD No. 2 as set forth in the documents adopted by the Council when CFD No. 2 was formed. "Calendar Year" means January 1 through December 31 "CFD" or "CFD No. 2" means the City of Campbell Community Facilities District No. 2 (Public Services). "CFD Formation" means the date on which the Resolution of Formation to form CFD No. 2 was adopted by the City Council. "City" means the City of Campbell. "Council" means the City Council of the City of Campbell, acting as the legislative body of CFD No. 2. "County" means the County of Santa Clara. "Developed Property" means, in any Fiscal Year, all Parcels of Taxable Property for which a final building permit was issued by the City on or prior to June 30 of the preceding Fiscal Year. In the absence of a final building permit, any Parcel of Taxable Property shall be classified as Developed Property if it has been occupied by a residential ornon-residential user on or prior to June 30 of the preceding fiscal year. "Final Map" means a final map approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410, et seq.) that creates individual lots on which a building permit can be issued for construction of residential units without further subdivision of the lots. Exhibit B Page 2 "Fiscal Year" means the period starting on July 1 and ending on the following June 30. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C, which can be levied in any Fiscal Year. "Proportionately" means, for Developed Property, that the ratio of the actual annual Special Tax levied in any Fiscal Year to the Maximum Special Tax authorized to be levied in that Fiscal Year is equal for all Assessor's Parcels of Developed Property. For Undeveloped Property, "Proportionately" means that the ratio of the actual annual Special Tax levied in any Fiscal Year to the Maximum Special Taz authorized to be levied in that Fiscal Year is equal for all Assessor's Parcels of Undeveloped Property. "Public Property" means, for each Fiscal Year: (i) any property within the boundaries of CFD No. 2 that is owned by or irrevocably offered for dedication to the federal government, the State of California, the City or any other public agency; provided, however, that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act (as such section may be amended or replaced) shall be taxed and classified in accordance with its use; or (ii) any property within the boundaries of CFD No. 2 that is encumbered by an unmanned utility easement making impractical its utilization for other than the purpose set forth in the easement. "Residential Unit" means an individual single-family detached unit per the County Assessor. An Accessory Unit that shares a Parcel with asingle-family detached unit shall not be considered a separate Residential Unit for purposes of this RMA. "RMA" means this Rate and Method of Apportionment of Special Tax. "Special Tax" means any tax levied within CFD No. 2 to pay the Special Tax Requirement. "Special Tax Requirement" means the amount of revenue needed in any Fiscal Year to pay for the following: (i) Authorized Services; (ii) Administrative Expenses; and (iii) amounts needed to cure any delinquencies in the payment of Special Taxes which have occurred or, based on delinquency rates in prior years, may be expected to occur in the Fiscal Year in which the Special Tax will be collected. "Taxable Property" means all Assessors' Parcels within the boundaries of CFD No. 2 that are not exempt from the Special Tax pursuant to law or Section E below. "Tax Zone" means a mutually exclusive geographic area within which the Special Tax may be levied pursuant to this RMA. All of the property within CFD No. 2 at the time of CFD Formation is within Tax Zone 1. Additional Tax Zones may be created when property is annexed to CFD No. 2, and a separate Maximum Special Exhibit B Page 3 Tax shall be identified for property within the new Tax Zone at the time of such annexation. The Assessor's Parcels included within a new Tax Zone established when such Parcels are annexed to CFD No. 2 shall be identified by Assessor's Parcel Number in the Unanimous Approval Form that is signed by the owner(s) of the Parcels at the time of annexation. "Unanimous Approval Form" means that form executed by the record owner of fee title to a Parcel or Parcels annexed into CFD No. 2 that constitutes the property owner's approval and unanimous vote in favor of annexing into CFD No. 2 and the levy of the Special Tax against his/her Parcel or Parcels pursuant to this RMA. "Undeveloped Property" means, in any Fiscal Year, all Parcels of Taxable Property in CFD No. 2 that are not Developed Property. B. DATA FOR ANNUAL TAX LEVY Each Fiscal Year, the Administrator shall identify the current Assessor's Parcel Numbers for all Parcels of Taxable Property within CFD No. 2. The Administrator shall also determine: (i) whether each Assessor's Parcel of Taxable Property is Developed Property or Undeveloped Property; (ii) which Tax Zone each Assessor's Parcel is located in; and (iii) the Special Tax Requirement for the then-current Fiscal Year. In any Fiscal Year, if it is determined that (i) a Final Map or parcel map for a portion of property in CFD No. 2 was recorded after the last date upon which the Assessor will incorporate the newly-created Parcels into the then current tax roll, (ii) because of the date the Final Map or parcel map was recorded, the Assessor does not yet recognize the new Parcels created by the Final Map or parcel map, and (iii) one or more of the newly-created Parcels meets the definition of Developed Property, the Administrator shall calculate the Special Tax for the property affected by recordation of the Final Map or parcel map by determining the Special Tax that applies separately to each newly-created Parcel, then applying the sum of the individual Special Taxes to the Parcel that was subdivided by recordation of the Final Map or parcel map. C. MAXIMUM SPECIAL TAXES Developed Property The Maximum Special Tax for Fiscal Year 2013-14 for all Parcels of Developed Property within Tax Zone 1 shall be $1,790.00 per Residential Unit. Exhibit B Page 4 2. Undeveloped Property The Maximum Special Tax for Fiscal Year 2013-14 for all Parcels of Undeveloped Property within Tax Zone 1 shall be $7,765.00 per Acre. 3. Escalation of Maximum Special Tax On July 1, 2014, and each July 1 thereafter, the Maximum Special Tax for Developed Property and Undeveloped Property shall be increased by an amount equal to the greater of; the prior Calendar Year's annual change in the Consumer Price Index -All Urban Consumers (San Francisco-Oakland-San Jose, CA) or 4.0% of the Maximum Special Tax for Developed Property and Undeveloped Property, respectively, in effect in the prior Fiscal Year. D. METHOD OF LEVY AND COLLECTION OF SPECIAL TAXES Each Fiscal Year, the Administrator shall determine the Special Tax Requirement for that Fiscal Year and levy the Special Tax on all Parcels of Taxable Property as follows: Step 1: The Special Tax shall be levied proportionately on each Parcel of Developed Property up to 100% of the Maximum Special Tax for each Parcel for such Fiscal Year until the amount levied is equal to the Special Tax Requirement; Step 2: If additional revenue is needed after Step 1, the Special Tax shall be levied proportionately on each Parcel of Undeveloped Property up to 100% of the Maximum Special Tax for each Parcel for such Fiscal Year until the amount levied, when combined with the amount levied pursuant to Step 1, is equal to the Special Tax Requirement. The Special Tax for CFD No. 2 shall be collected at the same time and in the same manner as ordinary ad valorem property taxes provided, however, that the City may (under the authority of Government Code Section 53340) collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of CFD No. 2, and the Special Tax shall be equally subject to foreclosure if delinquent. E. EXEMPTIONS Notwithstanding any other provision of this RMA, no Special Tax shall be levied on Parcels of Public Property, except as otherwise provided in the Act. Exhibit B Page 5 F. INTERPRETATION OF SPECIAL TAX FORMULA The City reserves the right to make minor administrative and technical changes to this document that does not materially affect the rate and method of apportioning Special Taxes. In addition, the interpretation and application of any section of this document shall be left to the City's discretion. Interpretations may be made by the City by resolution of the Council for purposes of clarifying any vagueness or ambiguity in this RMA. G. TERM OF THE SPECIAL TAX The Special Tax shall be levied in perpetuity as necessary to pay the Special Tax Requirement. H. REPEAL OF THE SPECIAL TAX If the levy of the Special Tax is repealed by initiative or any other action participated in by the owners of Parcels in CFD No. 2, the City shall cease to levy the Special Tax and shall cease to be obligated to provide the Authorized Services for which the Special Tax was levied. The obligations to provide the Authorized Services previously funded by the repealed Special Tax shall become the obligations of any property owners association established within CFD No. 2, and if there is no such association, they shall become the joint obligations of the property owners of Parcels within CFD No. 2 in proportion to the number of Parcels owned by each such owner to the total number of Parcels within CFD No. 2. Exhibit B Page 6