Report Prepared by: Julie Nelson, Senior Planner, Development Services Department
Title
SUBJECT: Adoption of Resolution of Intent Regarding Annexation No. 19 into Community Facilities District (CFD) No. 2003-2 (Services) for Approximately 2.8 Acres of Land Located at the Northwest Corner of Highway 59 and Santa Fe Drive and Setting a Public Hearing for December 20, 2021
REPORT IN BRIEF
Requests the City Council to adopt a Resolution of Intent to annex approximately 2.8 acres of land located at the northwest corner of Highway 59 and Santa Fe Drive into Community Facilities District (CFD) No. 2003-2 (Services) and set a public hearing for December 20, 2021.
RECOMMENDATION
City Council - Adopt a motion:
A. Adopting Resolution 2021-105, 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,
B. Setting the Public Hearing for December 20, 2021; and,
C. Accepting the Petition, Consent and Waiver from 59 Petroleum, LLC.
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) and designation of future annexation area of certain parcels 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 has a longstanding 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 northwest corner of Highway 59 and Santa Fe Drive Drive (Attachment 1). The proposed boundary map for the CFD annexation is provided at Attachment 2.
In order to determine the special tax for this development, an amended Rate and Method of Apportionment (RMA) was prepared (Exhibit A of the Draft Resolution at Attachment 5). The landowner has reviewed the RMA and been notified of the amount of the annual levy as shown on the Maximum Tax Rates Schedule at Attachment 3. These tax rates are for Fiscal Year 2020-21. This project is Improvement Area No. 43 as shown on the tax rate table.
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 5). This resolution also sets December 20, 2021, 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 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 5).
Past Action
On March 3, 2020, the City Council accepted a Petition to Annex to CFD 2003-2 submitted by the property owner and approved a Deposit and Reimbursement Agreement to cover the costs of the annexation. The developer submitted the required deposit of $25,000 and the City Council appropriated the funds to Fund 150 at the March 3, 2020, City Council meeting.
Because the City was not ready to move forward with the annexation at the time the developer desired to obtain building permits, the applicant submitted a new Petition that authorized the City to vote on their behalf in the election. This Petition is found at Attachment 4
City Council Action
Staff is recommending the City Council accept the Petition, Consent, and Waiver at Attachment 4 and adopt the Resolution of Intent at Attachment 5, setting the public hearing for December 20, 2021.
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. Boundary Map for Annexation No. 19
3. Maximum Special Tax Rates
4. Petition, Consent and Waiver
5. Draft Resolution of Intent with RMA at Exhibit A