Report Prepared by: Julie Nelson, Associate Planner, Development Services
Title
SUBJECT: Adoption of Resolution of Intent Regarding Annexation into Community Facilities District (CFD) No. 2003-2 (Services) for the PG&E Merced Regional Service Center and Setting a Public Hearing for August 17, 2020, to Hold the Election for Annexation into the CFD
REPORT IN BRIEF
This report requests the City Council to adopt a Resolution of Intent to annex the PG&E Merced Regional Service Center into Community Facilities District (CFD) No. 2003-2; and set a Public Hearing for August 17, 2020, to hold the election for annexation into the CFD.
RECOMMENDATION
City Council - Adopt a motion:
A. Adopting Resolution 2020-42, A Resolution of Intention of the City Council of the City of Merced, acting as the Legislative Body of the City of Merced Community Facilities District No. 2003-2 (Services), declaring its intention to annex area to said district and authorize the levy of a special tax within said annexation and approving a certain agreement related thereto; and,
B. Setting the Public Hearing for August 17, 2020.
Body
ALTERNATIVES
1. Approve the action 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. 2003-3 (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
The City approved a policy requiring all new development with the City to annex to a community facilities district pursuant to the Mello-Roos Community Facilities Act of 1982, for the provision of certain services to new development. The services to be provided may include all or a portion of the following: police and fire protection services, maintenance of parks, landscaping, parkways, open space and storm drain maintenance, and other services authorized or to be authorized by the City’s Municipal Code. The formation or annexation to the community facilities district is a condition of approval for new developments.
The property under consideration for annexation in the City’s CFD for Services (CFD No. 2003-2) is located at the northeast corner of Kibby Road and Childs Avenue (Attachment 1). This land includes the PG&E Merced Regional Service Center (Attachment 2). All of the property included in the project is owned by PG&E. On August 5, 2019, the City Council approved a Petition to Annex from the property owner and a Deposit and Reimbursement Agreement with the owner to cover the City’s costs related to the annexation into the CFD.
In order to determine the special tax for this development, an amended Rate and Method of Apportionment (RMA) was prepared. The landowner has been notified of the amount of the annual levy.
In order to start the annexation process, the City Council is being asked to adopt the Resolution of Intent (ROI), declaring its intent to annex this land into the CFD (Attachment 3). This resolution also sets August 17, 2020, as the date to hold the public hearing and election on this matter. Provided there is no majority protest, this property would be annexed into the CFD. Should the proposition pass with a two-thirds vote from the qualified voters (the landowner), the City may levy the special tax pursuant to the amended rate and method of apportionment (Exhibit A of the Draft Resolution of Intent at Attachment 3).
IMPACT ON CITY RESOURCES
The annexation of this property into CFD No. 2003-2 (Services) would allow a special tax to be levied on these properties to cover the costs of landscape and storm drain maintenance and a portion of the costs for Police and Fire services to the project area.
ATTACHMENTS
1. Location Map
2. PG&E Merced Regional Service Center
3. Draft Resolution of Intent [including Rate and Method of Apportionment (RMA) at Exhibit A]