Title
SUMMARY: Proposed Adoption of Community Facilities District No 14-1 and Levy of Special Tax for Marina Cove II.
Public Hearing to Consider Adoption of Resolution Establishing the Formation of a Community Facilities District, City of Alameda Community Facilities District No. 14-1 (Marina Cove II); Adoption of Resolution Calling a Special Election within Community Facilities District No. 14-1 (Marina Cove II); Adoption of Resolution Declaring Results of a Special Election within Community Facilities District No. 14-1 (Marina Cove II) and Directing the Recording of a Special Tax Lien; and Introduction of Ordinance Levying Special Taxes within Community Facilities District No. 14-1 (Marina Cove II). (Public Works 4205)
Body
To: Honorable Mayor and Members of the City Council
From: John A. Russo, City Manager
Re: Conduct a Public Hearing to Adopt a Resolution of Formation to Establish a Community Facilities District No. 14-1 (Marina Cove II), Conduct Landowner Election, Adopt Resolution Declaring Results of Landowner Election and Introduce Ordinance Levying Special Taxes within the Community Facilities District
BACKGROUND
On January 2, 2013 the City Council held a public hearing and unanimously adopted a resolution approving 52 lots for single-family homes and one large lot to accommodate 37 multi-family units. This resolution included a condition that Lennar Corporation (Developer) establish a funding mechanism acceptable to the Public Works Director, such as a Community Facilities District (CFD), to provide funding for the pro-rated share of maintenance of public improvements, including public utilities and landscaping within the right-of way, the bulkhead, and the waterfront park. Marina Cove II is the formerly vacant lot located at 1551 Buena Vista Avenue and bounded by Ohlone Street, Buena Vista Avenue, Clement Avenue, and Entrance Way (see Exhibit 1 - Boundary Map).
In accordance with resolution conditions, the developer petitioned that a CFD be formed, and on July 15, 2014 the City Council adopted Resolution No. 14953 declaring its intention to establish a CFD and authorize the levy of special taxes. The resolution adopted the proposed boundary map, the description of improvements and services to be financed by the district and the rate and method of apportionment of special tax and called for the City Council to hold a public hearing on September 2, 2014 to take further action to complete the CFD formation process, including an election of the CFD's property owners and the levy of special taxes.
DISCUSSION
The City Council is now requested to hold the public hearing regarding the formation of the CFD. At the hearing, all interested persons or taxpayers desiring to be heard may testify for or against the establishment of the CFD, the services to be funded therein, and the levy of such special tax. Any person interested is authorized to file a protest in writing. Further, if the owners of over fifty percent (50%) of the land in the CFD protest the formation of the CFD, the City Council may not proceed with the formation of the CFD at this time.
Following the close of the public hearing and assuming no majority protest, the City Council is then requested to take the actions necessary to officially form the CFD and to authorize the levy of special taxes in the CFD. Staff recommends that the City Council adopt the resolution of formation of the CFD and the resolution calling a special election of the landowners in the CFD. Immediately upon adoption of the resolution calling the election, the City Clerk will tabulate the returned ballots that were distributed to property owners within the CFD in accordance with City Council Resolution No. 14953, adopted on July 15, 2014. If two-thirds or more of the votes returned at the election are in favor of the CFD, the City Council is then requested to adopt a resolution declaring the results of the election and providing for the recording of a special tax lien with the County Recorder no later than fifteen (15) days following the adoption of this resolution by the City Council. The City Council will also hear the first reading of the ordinance to authorize and levy the special taxes within the district, commencing in fiscal year 2015-16 and in each fiscal year thereafter, pursuant to the City of Alameda Special Tax Financing Improvement Code, Section 3-70, at the rate and in accordance with the rate and method of apportionment of special taxes for the district as approved by the Resolution of Formation.
FINANCIAL IMPACT
All costs related to the formation of the CFD are being paid by the Developer in connection with its obligations under the Development Agreements. The annual costs to administer the CFD will be paid for from annual special taxes to be accounted for in a special fund and to be levied on property within the boundaries of the CFD, which will include only the land for residential development within the Marina Cove II area. There is no impact to the General Fund.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The Municipal Code currently contains, in Section 3-70, the City of Alameda Special Tax Financing Improvement Code pursuant to which the proposed CFD is being formed.
ENVIRONMENTAL REVIEW
It has been determined that this action is not a "project" as defined under Section 15378 of the California Environmental Quality Act (CEQA), therefore, the activity is not subject to CEQA and no environmental review is necessary.
RECOMMENDATION
Conduct a public hearing to adopt a resolution of formation to establish a Community Facilities District No. 14-1 (Marina Cove II), conduct landowner election, adopt resolution declaring results of landowner election and introduce ordinance levying special taxes within the Community Facilities District.
Respectfully submitted,
Robert G. Haun, Public Works Director
By,
Liz Acord, Management Analyst
Financial Impact section reviewed,
Fred Marsh, Finance Director
Exhibit:
1. Boundary Map