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Adoption of Resolution Declaring Results of Special Election in Community Facilities District No. 17-1 (Alameda Point Public Services District), Determining That Alteration of the Rate and Method of Apportionment of Special Taxes for the District is Lawfully Authorized, and Directing Recording of an Amendment to Notice of Special Tax Lien. (Base Reuse 819099)
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To: Honorable Mayor and Members of the City Council
From: David L. Rudat, Interim City Manager
EXECUTIVE SUMMARY
On October 16, the City Council approved a resolution calling a special election in Community Facilities District No. 17-1 to alter the Rate and Method of Apportionment of Special Taxes in the District (RMA). The election was conducted by mail ballot with ballots due on December 6, 2018. The City Clerk has canvassed the election and has determined that more than two-thirds of the ballots cast in the election were in favor of the measure.
This staff report recommends adoption of a resolution declaring the results of the election and directing the City Clerk to record a first amendment to the previously recorded Notice of Special Tax Lien for the District.
BACKGROUND
On March 21, 2017, the City Council adopted Resolution No. 15249 pursuant to which it formed the City of Alameda Community Facilities District No. 17-1 (Alameda Point Public Services District) (CFD), in connection with the development of Alameda Point. The CFD was established in order to finance annual public services and transportation demand management services and programs associated with the development of the 68-acre Site A development. Other areas of Alameda Point are included in a “Future Annexation Area” for the CFD and are to be annexed into the CFD prior to their transfer to private property owners. The first such annexation occurred on March 15, 2018, in connection with a transfer of a portion of the Site A land.
The Resolution that formed the CFD approved a RMA, which set forth the manner in which the City Council will levy special taxes on property in the CFD to pay the costs of services eligible to be funded by the CFD, and to pay the costs of the City to administer the CFD. Following the formation of the CFD, it was discovered that there was an unintended error in the RMA that would prevent the levy of special taxes on property to be included in Zone 2 of the CFD. While the City expected to be able to levy special taxes on all property in, or annexed to, Zone 2 of the CFD that was developed, the definition of “Developed Property” in the RMA would not allow for the special tax levy on certain parcels. The owners of all property in Zone 2 of the CFD were advised of the expected special tax levy. The proposed change in the RMA alters the definitions of “Developed Property” and of “Non-Residential Property” in the Rate and Method, so that they reflect what was intended by the City and property owners at the time of formation of the CFD.
On October 2, 2018, the City Council adopted a resolution of consideration to alter the RMA in order to correct the unintended errors in the RMA, which set a public hearing for October 16, 2018 regarding the proposed alteration. On October 16, 2018, the public hearing was held, and following the hearing, the City Council adopted a resolution calling a special election of the owners of land within the CFD regarding the proposed alteration.
The election was conducted by mail ballot with ballots due to the City Clerk by the close of business on December 6, 2018. The City Clerk has canvassed the election and has determined that more than two-thirds of the ballots cast in the election were in favor of the measure.
It is recommended that the City Council adopt a resolution declaring the results of the election and directing the City Clerk to record a first amendment to the previously recorded Notice of Special Tax Lien for the District. The Notice of Special Tax Lien provides all future owners of property in the CFD with knowledge of the District and the CFD’s current special taxing power.
DISCUSSION
The CFD was formed pursuant to the City’s Special Tax Financing Improvement Code (Municipal Code Section 3-70.1 and following), which provides for a process to alter the RMA for the CFD. That process began with the adoption by the City Council on October 2, 2018 of a resolution of consideration to alter the RMA, which described the proposed alteration, and that called for a public hearing on October 16th regarding the alteration. On October 16, 2018, the public hearing was held, and following the hearing, the City Council adopted a resolution calling a special election of the owners of land in the CFD regarding the proposed alteration.
The election was conducted by mail ballot with ballots due to the City Clerk by the close of business on December 6, 2018. The City Clerk has canvassed the election and has determined that more than two-thirds of the ballots cast in the election were in favor of the measure.
The Resolution now before the Council formally declares the result of the special election and directs the City Clerk to record an amendment to the Notice of Special Tax Lien, which was previously recorded against the property in the CFD.
FINANCIAL IMPACT
There is no impact to the General Fund to modify the RMA for the CFD. All costs related to the alteration proceedings are to be paid from proceeds of the special tax levy on parcels in the CFD. The annual costs to administer the CFD and the Bonds are to be paid from annual special taxes levied on property included within the boundaries of the CFD.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The Municipal Code contains, in Section 3-70, the City of Alameda Special Tax Financing Improvement Code pursuant to which the CFD was formed, and pursuant to which the alteration of the RMA is being processed.
ENVIRONMENTAL REVIEW
On February 4, 2014, the City of Alameda certified the Alameda Point Final Environmental Impact Report (EIR) in compliance with the California Environmental Quality Act (CEQA). The Final EIR evaluated the environmental impacts of redevelopment and reuse of the lands at Alameda Point consistent with Alameda Point Zoning District, including the adaptive reuse area and with the Alameda Point Waterfront Town Center Plan, which included Site A. The formation of the CFD, and the action to alter the RMA, are consistent with the prior approvals and will not result in any new or substantially more severe environmental impacts than were previously identified in the Final EIR.
RECOMMENDATION
Adopt a Resolution declaring results of Special Election in Community Facilities District No. 17-1 (Alameda Point Public Services District), determining that alteration of the rate and method of apportionment of special taxes for the District is lawfully authorized, and directing recording of an amendment to Notice of Special Tax Lien.
Respectfully submitted,
Debbie Potter, Base Reuse & Economic Development Director
By:
Michelle Giles, Redevelopment Project Manager
Financial Impact section reviewed,
Elena Adair, Finance Director