Report Prepared by: Francisco Mendoza-Gonzalez, Senior Planner, Development Services Department
Title
SUBJECT: Public Hearing to Consider the Annexation of Certain Property into Community Facilities District (CFD) No. 2003-2 (Services), Calling and Holding a Special Election for Each Annexation No. 28 and Annexation No. 29 into CFD No. 2003-2 (Services); Canvassing the Results of the Elections Held within Annexations No. 28 and No. 29 of Said District, and Annexing Annexations No. 28 and No. 29 to Said District and Authorizing the Levy of a Special Tax within Said Annexations No. 28 and No. 29. Annexation No. 28 Consist of Approximately 4.59 Acres of Land Generally Located at the Northeast Corner of Yosemite Avenue and El Redondo Drive. Annexation No. 29 Consist of Approximately 14.02 Acres of Land Generally Located of the Northwest Corner of El Redondo Drive and Pettinotti Road
REPORT IN BRIEF
Hold a public hearing and conduct an election for each annexation into Community Facilities District No. 2003-2 (Services) for Annexation No. 28 consisting of approximately 4.59 acres of land generally located at the northeast corner of Yosemite Avenue and El Redondo Drive, and for Annexation No. 29 consisting of approximately 14.02 acres of land generally located of the northwest corner of El Redondo Drive and Pettinotti Road.
RECOMMENDATION
City Council - Adopt a motion:
A. Holding a Public Hearing on the annexation of certain property into the CFD and the levy of special taxes; and,
B. Adopting Resolution 2025-25, a Resolution of the City Council of the City of Merced, acting as the Legislative Body of the Community Facilities District No. 2003-2 (Services) of the City of Merced determining the validity of prior proceedings, calling special election related to Annexation No. 28 and approving future annexation area; and,
C. Adopting Resolution 2025-26, a Resolution of the City Council of the City of Merced, acting as the Legislative Body of the Community Facilities District No. 2003-2 (Services) of the City of Merced determining the validity of prior proceedings, calling special election related to Annexation No. 29 and approving future annexation area; and,
D. Holding an election for Annexation No. 28; and,
E. Adopting Resolution 2024-27, a Resolution of the City Council of the City of Merced acting as the Legislative Body of the Community Facilities District No. 2003-2 (Services) of the City of Merced canvassing the results of the election held within Annexation No. 28 of said District; and,
F. Adopting Resolution 2025-28, a Resolution of the City Council of the City of Merced acting as the Legislative Body of the Community Facilities District No. 2003-2 (Services) of the City of Merced, annexing Annexation No. 28 to said district and authorizing the levy of a special tax within said Annexation No. 28; and,
G. Holding an election for Annexation No. 29; and,
H. Adopting Resolution 2025-29, a Resolution of the City Council of the City of Merced acting as the Legislative Body of the Community Facilities District No. 2003-2 (Services) of the City of Merced canvassing the results of the election held within Annexation No. 29 of said District; and,
I. Adopting Resolution 2025-30, a Resolution of the City Council of the City of Merced acting as the Legislative Body of the Community Facilities District No. 2003-2 (Services) of the City of Merced, annexing Annexation No. 29 to said district and authorizing the levy of a special tax within said Annexation No. 29.
Body
ALTERNATIVES
1. Approve the actions as recommended by staff; or,
2. Requesting modification or amendment to the documents and provide direction to City staff regarding the same; or,
3. Decline to authorize action as recommended; or,
4. Continue to a future City Council meeting (time and date to be specified in motion).
AUTHORITY
Annexation of property into the City’s existing CFD No. 2003-2 (Services) pursuant to Merced City Charter, Section 200; Chapter 2.5 (commencing with Section 53311 of Part 1 of Division 2 of Title 5 of California Government Code (the “Act”), commonly known as the “Mello-Roos Community Facilities Act of 1982;” and the City’s Policy on new development.
DISCUSSION
Pursuant to the Act and the City’s policies, on May 5, 2025, the City Council, acting as the Legislative Body of the CFD, declared its intention to annex certain property to the Community Facilities District (CFD) No. 2003-2 (Services) for approximately 4.59 acres of land generally located at the northeast corner of Yosemite Avenue and El Redondo Drive (Annexation No. 28 - Attachment 1), and for approximately 14.02 acres of land generally located of the northwest corner of El Redondo Drive and Pettinotti Road (Annexation No. 29 - Attachment 2).
Also, on May 5, 2025, the City Council accepted a Petition, Consent, and Waiver from Yosemite Village Holdings, LLC, CB 1285 Yosemite Starbucks, LLC and Camelback & 59th Ave Inc. for Annexation No. 28, and from Redondo and Cardella, LLC for Annexation No. 29.
In accordance with the Act, a map of the proposed boundaries of Annexations No. 28 and No. 29 were recorded with the County Recorder’s Office within a week of approving the resolution of intent (Attachments 3 and 4). The CFD Reports for Annexations No. 28 and No. 29 are provided in Attachments 5 and 6 respectively.
A public hearing was properly noticed for this evening and will involve a number of specific steps that must be completed in order. The Resolution of Intent called for a public hearing for this item on May 19, 2025, or as soon thereafter as practicable (all owners of the parcels having waived the 30-day waiting period and indemnifying the City). To meet noticing requirements the City Council Meeting of May 19, 2025, was selected as the feasible date to hear this item. City staff will outline those steps in order for the City Council at the start of the public hearing. In general, those steps will include the following: 1) Provided there is no majority protest at the close of the public hearing, the City Council may call a special election for this evening for the annexation to the CFD of each Annexation No. 28 and Annexation No. 29; 2) A special election will be conducted for each Annexation to ask the applicable property owners to authorize: (a) the annexation to the CFD of Annexations No. 28 and No. 29, as applicable; and, (b) the levy of an annual special tax within Annexations No. 28 and No. 29, as applicable; and 3) Each property owner has submitted a sealed ballot to the City Clerk (the election official) for either Annexation No. 28 or Annexation No. 29. Should the proposition pass with a two-thirds vote from the qualified voters (the landowner) as shown in the resolution canvassing the vote for each Annexation, the City may adopt the resolution of annexation for such Annexation.
The participating developers are responsible for the costs of the CFD annexation. A Deposit and Reimbursement Agreement was previously approved for Annexations No. 28 and No. 29 by the City Council and the appropriate deposit has been paid to the City.
IMPACT ON CITY RESOURCES
The annexation of the property in CFD No. 2003-2 (Services) would allow a special tax to be levied on this property to cover the maintenance costs for landscaping in the public right-of-way, storm drain and pump maintenance, and street light maintenance, as well as a portion of the costs for Police and Fire services. The property owners would be responsible for all maintenance costs until at least 50% of the development has been completed and sufficient funds have been collected by the CFD. At that point, the City would take over the maintenance to be funded by the CFD.
ATTACHMENTS
1. Location Map - Annexation No. 28
2. Location Map - Annexation No. 29
3. Boundary Map - Annexation No. 28
4. Boundary Map - Annexation No. 29
5. Merced CFD Report - Annexations No. 28
6. Merced CFD Report - Annexations No. 29
7. Resolution 2025-25 (Calling Election for Annexation No. 28)
8. Resolution 2025-26 (Calling Election for Annexation No. 29)
9. Resolution 2025-27 (Canvassing Results for Annexation No. 28)
10. Resolution 2025-28 (Annexation for No. 28)
11. Resolution 2025-29 (Canvassing Results for Annexation No. 29)
12. Resolution 2025-30 (Annexation for No. 29)
13. Presentation