AGENDA REPORT
REQUEST FOR CITY COUNCIL ACTION
DATE: 9/5/2018
TO: Honorable Mayor and City Council Members
FROM: Administrative Services Department
SUBJECT:
Title
City Council consideration to adopt Resolution No. 2018-093, declaring intention to annex territory to Community Facilities District No. 2016-3 (Maintenance Services) of the City of Corona, and adopting a map of the area proposed to be annexed thereto (Annexation No. 7).
End
RECOMMENDED ACTION:
Recommended action
That the City Council:
1. Adopt Resolution No. 2018-093, declaring intention to annex territory to Community Facilities District No. 2016-3 (Maintenance Services) of the City of Corona, and adopting a map of the area proposed to be annexed thereto (Annexation No. 7).
2. Authorize the Purchasing Agent to increase Purchase Order P20751 in the amount of $2,500.
Body
ANALYSIS:
The proposed development is comprised of one parcel totaling 2.99 acres, located south of Ontario Avenue, north of Othello Lane, east of Lincoln Avenue and west of Buena Vista, as shown in Exhibit “A” (“Subject Parcel”) of the Resolution No. 2018-093. Tract Map 37114 is a subdivision of 2.99 acres into five single-family lots, approved by City Council on June 20, 2018. The developer proposes to construct four new detached single-family residences and leave the existing single-family residence on a separate lot on the Subject Parcel.
The owner of the Subject Parcel, Karen Parker, has submitted a petition to the City requesting that the Subject Parcel be annexed into Community Facilities District No. 2016-3 (“CFD 2016-3”). Resolution 2018-093 declares the City’s intent to annex the Subject Parcel to CFD 2016-3 in order to pay for the maintenance of master-planned landscaping, lighting, traffic signals, parks, parkways, streets, roads and open spaces, maintenance and operation of storm drainage facilities in the area.
CFD 2016-3 was formed by the City Council on December 7, 2016 pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982 (“Act”). The initial step in the process to annex the Subject Parcels to CFD 2016-3 is for the City Council to adopt Resolution No. 2018-093, which declares the City’s intention to conduct proceedings for the proposed annexation and set the public hearing for October 17, 2018. Should Resolution No. 2018-093 be approved, and annexation process proceed, the City Council will be presented with more information regarding the special taxes to be levied on the Subject Parcels, and the maintenance services to be provided by CFD 2016-3 at the public hearing.
The total annexation cost is being borne by the property owner. The City awarded the special tax consulting services to Spicer Consulting Group (“SCG”) in January 2018 through a competitive process. A Purchase Order (“PO”) was issued in the amount of $160,000 to cover all existing special tax district administration work. The cost of this requested annexation is not covered by the existing PO with SCG. Therefore, staff is requesting to increase PO P20751 by $2,500, calculated based on the mutually agreed upon rates per the Professional Services Agreement (“PSA”) between the City and SCG.
COMMITTEE ACTION:
Not applicable.
STRATEGIC PLAN:
Not applicable.
FISCAL IMPACT:
The proposed annexation will establish Tax Zone 8 within CFD 2016-3. The Subject Parcel will be assessed as Single Family Residential and will benefit from the existing and future lanscaping, street lighting, traffic signals, drainage, streets, parks, and graffiti abatement maintenance services for this area.
The proposed annexation will result in approximately $3,572 of additional special tax revenues per year, from the planned five residential units at build-out, based on the annual rate of $715 per residential unit.
The total annexation cost including City Attorney fees, assessment engineer fees, publication, and City staff time is borne by the property owner.
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 declares the City’s intent to annex the Subject Parcels to CFD 2016-3 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: JENNIFER SCHAEFER, FINANCE MANAGER
REVIEWED BY: KERRY D. EDEN, ASSISTANT CITY MANAGER/ADMINISTRATIVE SERVICES DIRECTOR
REVIEWED BY: MICHELE NISSEN, ASSISTANT CITY MANAGER
SUBMITTED BY: DARRELL TALBERT, CITY MANAGER