AGENDA REPORT
REQUEST FOR CITY COUNCIL ACTION
DATE: 4/5/2017
TO: Honorable Mayor and City Council Members
FROM: Administrative Services Department
SUBJECT:
Title
City Council consideration to adopt Resolution No. 2017-015, certifying the results of an election and adding territory to Community Facilities District No. 2016-1 (Public Services) of the City of Corona (Annexation No. 2).
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RECOMMENDED ACTION:
Recommended action
That the City Council adopt Resolution No. 2017-015 certifying the results of an election and adding territory to Community Facilities District No. 2016-1 (Public Services) of the City of Corona (Annexation No. 2).
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ANALYSIS:
LCG Harrington, LLC, a Delaware limited liability company (“Owner”) is the owner of certain real property located at the southeast corner of North Lincoln Avenue and Harrington Street, identified as Assessor Parcel Numbers 119-190-022, 119-190-025, and 119-190-029 (“Property”). In connection with the City’s approval of Tract Map No. 36427, the Owner has agreed to annex the Property to Community Facilities District No. 2016-1 (“CFD 2016-1”) for the purpose of financing police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services (“Public Services”) within the area of CFD 2016-1, which is necessary to serve new development within Tract 36427.
CFD 2016-1 was formed by the City Council on March 2, 2016 pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982 (“Act”). As part of the formation process and in accordance with the Act, the City Council also established an area designated as the “Future Annexation Area” for CFD 2016-1 and authorized the annexation of parcels within the Future Annexation Area to CFD No. 2016-1 upon the unanimous approval and election of the owner(s) of any such parcel authorizing the levy of special taxes upon such parcel following the annexation of such parcel to CFD No. 2016-1. The annexation of parcels within the Future Annexation Area can be accomplished without any further public hearings or additional proceedings. The Property is within the Future Annexation Area and, thus, can be annexed to CFD 2016-1 with the unanimous approval and election of the Owner.
Prior to tonight’s City Council meeting, the Owner executed the attached Consent and Waiver to Shortening of Time for Conducting a Special Election and submitted a ballot, which authorizes the annexation of the Property to CFD 2016-1 and the levy of special taxes on the Property to pay for the Public Services.
The attached resolution will certify the results of the election on the annexation of the Property to CFD 2016-1 and annex the Property to CFD 2016-1.
COMMITTEE ACTION:
Not applicable.
STRATEGIC PLAN:
Not applicable.
FISCAL IMPACT:
Per tax rate set by the Rate and Method of Apportionment, total maximum assessment rate for CFD 2016-1 is $358 per multi-family residential unit for Fiscal Year 2016-17. The rate is proposed to escalate on July 1 of each year at the greater of Consumer Price Index (CPI) or 4%.
The proposed development includes 148 multi-family residential units. On March 1 of each year, every residential building for which a building permit has been issued will be subject to the special taxes in the ensuing fiscal year. Approval of the attached resolution is anticipated to result in approximately $57,307 of additional annual special tax revenue in Fiscal Year 2018-19 or later to provide for the Public Services, once the Property is fully developed as planned.
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the adoption of the resolutions may have a significant effect on the environment, the action is not subject to CEQA. This action merely annexes the Property to Community Facilities District 2016-1 and there is no possibility that adopting the above resolution will have a significant effect on the environment. Therefore, no environmental analysis is required.
PREPARED BY: PATRICIA SONG, CPA, FINANCE MANAGER
REVIEWED BY: KERRY D. EDEN, ASSISTANT CITY MANAGER/ADMINISTRATIVE SERVICES DIRECTOR
SUBMITTED BY: DARRELL TALBERT, CITY MANAGER