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HomeMy WebLinkAboutMINUTES - 05112010 - C.18RECOMMENDATION(S): ADOPT Resolution 2010/256, a Resolution of Intention relating to the establishment of a Mello-Roos Community Facilities District for a Countywide Street Lighting District. FISCAL IMPACT: None. Consultant costs required to establish the Community Facilities District will be covered by County Street Lighting funds. All costs of administering the District would be covered by the voter approved special tax. BACKGROUND: Mello-Roos Community Facilities Districts (“CFD”) are a mechanism to finance public facilities and services. It is a voter approved special tax that may be used to pay for eligible services or to pay debt service on tax-exempt bonds issued by the District. The proposed CFD for a Countywide Street Lighting District (“District”) will be used to pay for services provided by the Contra Costa County Public Works Department. There will be no bond issuance associated with the CFD. The Contra Costa County Public Works Department provides street lighting operations and APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 05/11/2010 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Gayle B. Uilkema, District II Supervisor Mary N. Piepho, District III Supervisor Susan A. Bonilla, District IV Supervisor Federal D. Glover, District V Supervisor Contact: James Kennedy, (925) 335-7225 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: May 11, 2010 David J. Twa, County Administrator and Clerk of the Board of Supervisors By: Katherine Sinclair, Deputy cc: Jim Kennedy, Kristen Lackey C.18 To:Board of Supervisors From:Catherine Kutsuris, Conservation & Development Director Date:May 11, 2010 Contra Costa County Subject:Community Facilities District, Countywide Street Lighting maintenance throughout the County’s unincorporated areas. The cost of providing these services is currently covered through County Service Area (CSA) L-100. CSA L-100 does not include provisions for upgrades, inflation or increasing costs of maintenance. Additionally, CSA L-100 requires developing properties to annex to L-100. This requires a LAFCO process, which can be time consuming and expensive. Establishment of the CFD is not subject to LAFCO law, nor is the subsequent annexation of additional parcels to the CFD subject to LAFCO. The Community Facilities District will provide a flow of revenue sufficient to provide the services on an ongoing basis, as well as a more streamlined process for meeting the County’s permit requirements related to street lighting for new parcels and subdivisions. Specifically, the CFD funds generated will be eligible to cover expenses for obtaining, constructing, furnishing, replacing, operating and maintaining street lighting equipment, apparatus, or facilities, paying the salaries and benefits of personnel and related expenses, and for establishing reserves for cash flow, repairs, replacement and for the future provision of services. The services funded by the CFD are in addition to those provided in the territory before the creation of the CFD. The special tax will include two zones: • Zone 1, the higher of the two taxes, includes taxable parcels located near or adjacent to street lights; and • Zone 2 includes taxable parcels with no street light located nearby or adjacent to the taxable parcel. These taxable parcels receive a lower tax because they do benefit from street lights located along the major arterial roadways throughout the unincorporated county. The boundaries of the Mello-Roos District are shown on Resolution No. 2010/256, Exhibit A. Two parcels are initially included in the CFD at formation, while the remainder of the unincorporated County parcels could be annexed to the CFD in the future. The current proceeding would establish a special tax for the two parcels only at this time, therefore those property owners will be the sole voters at this time. Subsequent annexations to the District, will occur in the future by a streamlined proceeding that would not require creation of a new District. Property owners associated with parcels to be annexed would vote at the time of annexation. In addition to the Boundary Map, Resolution No. 2010/256 includes the Description of Services to be provided by the CFD (Exhibit B) and the Rate and Method of Apportionment of Special Tax (Exhibit C). The recommended action responds to petitions received from the two property owners (Attachment "CFD Street Lighting Petitions"), and conforms to the requirements of the Mello-Roos Community Facilities Act of 1982, as amended (Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing at Section 53311 of the California Government Code). The County's Debt Advisory Committee (the Auditor-Controller, the Treasurer-Tax-Collector, and the County Finance Director) reviewed the proposed CFD on January 22, 2010 and found it to be in conformance with the County’s financing policies with the exception of two issues. The requirement of a deposit by the property owner is waived in order to expedite the formation of the CFD and in recognition that the CFD is intended to include properties other than the initial two petitioners. The prohibition of escalation of the special tax on residential properties, and limitation on the maximum special tax as a percentage of estimated property value are also waived. The Transportation, Water and Infrastructure Committee reviewed and recommended that the CFD proceedings proceed at its January 29, 2010 meeting. The Resolution of Intention that is recommended for adoption herein establishes the hearing date for the Board of Supervisors to consider adoption of a Resolution of Formation as June 15, 2010. BACKGROUND: (CONT'D) Attachments A - Resolution of Intention • Exhibit A – Boundary Map • Exhibit B – Description of Services • Exhibit C – Rate and Method of Apportionment B - CFD Street Lighting Petitions CONSEQUENCE OF NEGATIVE ACTION: CHILDREN'S IMPACT STATEMENT: ATTACHMENTS Resolution No. 2010/256 CFD Street Lighting Petitions CFD Street Lighting Reso Boundary Map CFD Street Lighting Description of Svcs CFD Street Lighting Rate and Method (Exhibit C) Exhibit D Notice of Hearing COMMUNITY FACILITIES DISTRICT NO. 2010-1 (COUNTYWIDE STREET LIGHTING) MAP OF PROPOSED BOUNDARIES OF THE CFD A-2 EXHIBIT B COUNTY OF CONTRA COSTA COMMUNITY FACILITIES DISTRICT NO. 2010-1 (COUNTYWIDE STREET LIGHTING) DESCRIPTION OF SERVICES ELIGIBLE TO BE FUNDED BY THE CFD Services: The services to be funded, in whole or in part, by the County of Contra Costa Community Facilities District No. 2010-1 (Countywide Street Lighting) (the “CFD”) include all direct and incidental costs related to providing street lighting within the unincorporated area of the County of Contra Costa. The CFD may fund any of the following related to the services described above: obtaining, constructing, furnishing, replacing, operating and maintaining equipment, apparatus or facilities, paying the salaries and benefits of personnel and for payment of other related expenses (including but not limited to employee benefit expenses and an allocation of general overhead expenses) and the provision of establishing reserves for cash flow, repairs, replacements and for the future provision of services. Any services to be funded by the CFD must be in addition to those provided in the territory of the CFD before the date of creation of the CFD, and may not supplant services already available within that territory when the CFD is created. It is expected that the services will be provided by the County, either with its own employees or by contract with third parties, or any combination thereof. Administrative Expenses: The direct and indirect expenses incurred by the CFD or County in connection with the establishment and administration of the CFD (including, but not limited to, the levy and collection of the special taxes) including the fees and expenses of attorneys, any fees of the County related to the CFD or the collection of special taxes, an allocable share of the salaries of County staff directly related thereto and a proportionate amount of the County’s general administrative overhead related thereto, any amounts paid by the County from its general fund with respect to the CFD or the services authorized to be financed by the CFD, and expenses incurred by the County in undertaking any action to collect from or foreclose on properties for which the payment of special taxes is delinquent, and all other costs and expenses of the County in any way related to the CFD. Other: The incidental expenses that may be financed by the CFD include: (i) all costs associated with the establishment and administration of the CFD, the determination of the amount of and collection of taxes, the payment of taxes, and costs otherwise incurred in order to carry out the authorized purposes of the CFD, (ii) any other expenses incidental to the provision of the services eligible to be funded by the CFD, and (iii) any amounts necessary to maintain and replenish a reserve required by the County for the payment of the costs of the services. EXHIBIT C COUNTY OF CONTRA COSTA COMMUNITY FACILITIES DISTRICT NO. 2010-1 (COUNTYWIDE STREET LIGHTING) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX Special Taxes applicable to each Assessor’s Parcel in the County of Contra Costa Community Facilities District No. 2010-1 (Countywide Street Lighting) [herein “CFD No. 2010-1” or “CFD”] shall be levied and collected according to the tax liability determined by the Board of Supervisors of the County of Contra Costa, acting in its capacity as the legislative body of CFD No. 2010-1, or its designee, through the application of the appropriate Special Taxes, as described below. All of the property in CFD No. 2010-1, unless exempted by law or by the provisions of Section E below, shall be taxed for the purposes, to the extent, and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311), Division 2, of Title 5 of the Government Code of the State of California. “Administrative Expenses” means the direct and indirect expenses incurred by the CFD or the County in connection with the establishment and administration of CFD No. 2010- 1 (including, but not limited to, the levy and collection of the Special Taxes) including the fees and expenses of attorneys, any fees of the County or the CFD related to CFD No. 2010-1 or the collection of Special Taxes, an allocable share of the salaries of County or CFD staff directly related thereto and a proportionate amount of the County’s and the CFD’s general administrative overhead related thereto, any amounts paid by the County or the CFD from their respective general funds with respect to CFD No. 2010-1 or the services authorized to be financed by CFD No. 2010-1, and expenses incurred by the County or the CFD in undertaking action to foreclose on properties for which the payment of Special Taxes is delinquent, any amounts necessary to maintain a reserve required by CFD No. 2010-1 for the payment of services and all other costs and expenses of the County or the CFD in any way related to CFD No. 2010-1. “Administrator” means the person or firm designated by the Board of Supervisors to administer the Special Taxes according to this RMA. “Acreage” means the acreage identified on a County Assessor’s parcel map for a particular Parcel. If the acreage is not indicated on the County Assessor’s parcel map or if it is determined by the Administrator that the acreage on the County Assessor’s parcel map is incorrect then the acreage will be determined based upon the County Assessor’s database or any source of information available to the Administrator which reasonably depicts the Parcel’s acreage. “Assessor’s Parcel” means a lot or parcel shown on a County Assessor’s parcel map with an assigned Assessor’s Parcel number. “Authorized Services” means the public services that are authorized to be funded by CFD No. 2010-1, as set forth in the CFD formation documents adopted by the Board of Supervisors. “Board of Supervisors” means the Board of Supervisors of the County of Contra Costa, acting as the legislative body of CFD No. 2010-1. “Condominium Property” means, in any Fiscal Year, all Parcels which have or are proposed to have a residential structure constructed on it that consists of residential units that share common walls, including, condominiums, townhomes, co-ops and cluster units and where each unit has an assigned Assessor’s Parcel number, all as determined by the Administrator. Condominium Property includes property converted from Multi-Family Property into Condominium Property, for each Fiscal Year following the Fiscal Year in which the conversion occurred. Condominium Property excludes residential second units established pursuant to Section 82-24 of the Zoning Ordinance Code. “County” means the County of Contra Costa. “Development” means a group of Parcels constituting an area to be developed at substantially the same time pursuant to a common plan of development and is included in a single Assessor’s parcel map, tract map, final map or other County recorded map depicting the development area. “Fiscal Year” means the period starting on July 1 and ending on the following June 30. “Maximum Special Tax” means the maximum Special Tax that can be levied on Taxable Property in any Fiscal Year determined in accordance with Section C below. “Multi-Family Property” means, in any Fiscal Year, all Parcels which have or are proposed to have a residential structure constructed on it that (i) is located within a mobile home park, or (ii) consists of two or more residential units that share common walls, including duplex, triplex and fourplex units, and apartment units, excluding Condominium Property, all as determined by the Administrator. Multi-Family Property excludes residential second units established pursuant to Section 82-24 of the Zoning Ordinance Code. “Other Property” means, in any Fiscal Year, all Taxable Property within the boundaries of CFD No. 2010-1 that is not classified as Single Family Property, Condominium Property, or Multi-Family Property. “Parcel” has the same meaning as Assessor’s Parcel. “Public Property” means any property within the boundaries of CFD No. 2010-1 that, for the applicable Fiscal Year, is owned or irrevocably offered for dedication to the federal government, State of California, County, or other local governments or public agencies. “RMA” means this Rate and Method of Apportionment of Special Tax. “Single Family Property” means, in any Fiscal Year, all Parcels which have or are proposed to have a single family residential structure constructed on it that does not share a common wall with another unit, except for attached residential second units established pursuant to Section 82-24 of the Zoning Ordinance Code, all as determine by the Administrator. A Parcel of Single Family Property with an attached residential second unit established pursuant to Section 82-24 will be taxed as one Parcel of Single Family Property pursuant to this RMA. “Special Tax” means a special tax levied in any Fiscal Year to pay the Special Tax Requirement. “Special Tax Requirement” means the amount necessary in any Fiscal Year to (i) pay for Authorized Services, (ii) pay Administrative Expenses for the Fiscal Year, (iii) cure any delinquencies in the payment of Special Taxes levied in prior Fiscal Years or (based on delinquencies in the payment of Special Taxes which have already taken place) are expected to occur in the current Fiscal Year, and (iv) to create or replenish reserve funds. “Street” means a public or private roadway, excluding a path or alley, which allows vehicular access to and from a Parcel. “Street Frontage” means that portion of a Parcel, measured in linear feet, that borders or is located adjacent to a Street. However, if a group of Parcels constituting a Development is annexed into CFD No. 2010-1 and the Parcels included in that Development consists of Parcel(s) that are exempt from the Special Tax pursuant to law or Section E below, and those exempt Parcels border or are located adjacent to a Street, then that portion of the exempt Parcel, measured in linear feet, that borders or is located adjacent to a Street must be prorated to all the Taxable Property within the Development based on each Taxable Property’s Street Frontage or if the Taxable Property within the Development has no Street Frontage then based on each Taxable Property’s Acreage. “Tax Zone” means one of the mutually exclusive tax zones identified in Attachment 2 of this RMA. Attachment 2 will be updated to include new Tax Zones or new Parcels added to CFD No. 2010-1 as a result of future annexations to the CFD. “Taxable Property” means all Assessors’ Parcels within the boundaries of CFD No. 2010-1 that are not exempt from the Special Tax pursuant to law or Section E below. B. DATA COLLECTION FOR ANNUAL TAX LEVY Each Fiscal Year, the Administrator shall identify the current Assessor’s Parcel numbers for all Parcels of Developed Property within CFD No. 2010-1 and shall determine within which Tax Zone each Assessor’s Parcel is located. Upon each annexation of property into CFD No. 2010-1, the Administrator shall update Attachment 2 of this RMA to include each new Parcel that is annexed into an existing Tax Zone or, if a new Tax Zone is created, each new Tax Zone and the Assessor’s Parcel(s) included in the Tax Zone. If a new Tax Zone is created, the Administrator shall update Attachment 1 of this RMA to include the Maximum Special Taxes for that Tax Zone. The Administrator shall also determine: (i) whether each Assessor’s Parcel is Agricultural Property, Condominium Property, Single Family Property, Multi-Family Property, or Other Property, (ii) for Parcels of Agricultural Property, Condominium Property and Single Family Property, the number of Units of each Parcel, (iii) for Parcels of Multi-Family Property and Other Property, the amount of Street Frontage and Acreage of each Parcel. For Agricultural Property, Condominium Property and Single Family Property, the number of Units shall be determined by referencing the development plan for the property or other County development records. Finally, the Administrator shall also determine the Special Tax Requirement. In any Fiscal Year, if it is determined that (i) a parcel map for a portion of property in CFD No. 2010-1 was recorded after January 1 of the prior Fiscal Year (or any other date after which the Assessor will not incorporate the newly-created Parcels into the then current tax roll), (ii) because of the date the parcel map was recorded, the Assessor does not yet recognize the new Parcels created by the parcel map, and (iii) one or more of the newly-created Parcels meets the definition of Developed Property, the Administrator shall calculate the Special Tax for the property affected by recordation of the parcel map by determining the Special Tax that applies separately to each newly- created Parcel, then applying the sum of the individual Special Taxes to the Parcel that was subdivided by recordation of the parcel map. C. MAXIMUM SPECIAL TAXES The Maximum Special Tax rates for each Tax Zone are shown in Attachment 1 of this RMA. The Maximum Special Tax for a Parcel of Taxable Property shall be determined by the following: 1. Single Family Property or Condominium Property The Maximum Special Tax for a Parcel of Single Family Property or Condominium Property is the applicable Maximum Special Tax rate for each such Parcel, as shown in Attachment 1 of this RMA for the Tax Zone and the then current Fiscal Year. 2. Multi-Family Property or Other Property The Maximum Special Tax for a Parcel of Multi-Family Property or Other Property within Tax Zone 1 is the Street Frontage of the Parcel multiplied by the applicable Maximum Special Tax rate for such Parcel, as shown in Attachment 1 of this RMA for the Tax Zone and the then current Fiscal Year. The Maximum Special Tax for a Parcel of Multi-Family Property or Other Property within Tax Zone 2 is the Acreage of the Parcel multiplied by the applicable Maximum Special Tax rate for such Parcel, as shown in Attachment 1 of this RMA for the Tax Zone and the then current Fiscal Year. D. METHOD OF LEVY AND MANNER OF COLLECTION OF THE SPECIAL TAXES The Special Taxes shall be levied and collected according to the methodology outlined below: The Special Tax shall be levied proportionately on each Taxable Parcel up to 100% of the Maximum Special Tax for that Taxable Parcel until the aggregate amount levied for all Taxable Parcels is equal to the Special Tax Requirement. The Special Tax for CFD No. 2010-1 shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the County may bill the Special Tax directly, and/or collect the Special Tax at a different time or in a different manner. E. LIMITATIONS Notwithstanding any other provision of this RMA, no Special Tax shall be levied on Public Property or property owned by a homeowner’s or property owner’s association; except in accordance with Section 53340.1(a) of the Act, if a public agency owning Public Property, including property held in trust for any beneficiary, grants a leasehold or other possessory interest in the Public Property to a non-governmental entity, the Special Tax shall be levied on the leasehold or possessory interest based upon its classification as Condominium Property, Multi-Family Property, Single Family Property or Other Property under this RMA. F. INTERPRETATION OF SPECIAL TAX FORMULA The County reserves the right to make minor administrative and technical changes to this document that does not materially affect the rate and method of apportioning Special Taxes. In addition, the interpretation and application of any section of this document shall be left to the County’s discretion. Interpretations may be made by the County by resolution of the Board of Supervisors for purposes of clarifying any vagueness or ambiguity in this RMA. G. APPEAL OF SPECIAL TAX LEVY Any property owner claiming that the amount or application of the Special Tax is not correct may file a written notice of appeal with the Administrator not later than one calendar year after having paid the Special Tax that is disputed. The Administrator shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and decide the appeal. If the property owner disagrees with the Administrator’s decision relative to the appeal, the owner may then file a written appeal with the Board of Supervisors whose subsequent decision shall be binding. If the decision of the Administrator (if the appeal is not filed with the Board of Supervisors) or the Board of Supervisors (if the appeal is filed with the Board of Supervisors) requires the Special Tax to be modified or changed in favor of the property owner, no cash refund shall be made for prior years’ Special Tax levies, but an adjustment shall be made to the next Special Tax levy. This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to any legal action by such owner. Attachment 1 County of Contra Costa Community Facilities District No. 2010-1 (Countywide Street Lighting) Maximum Special Taxes for Tax Zone 11 (Taxable Parcels with Street Lights located Near or Adjacent to the Taxable Parcels) For Single Family Property, Condominium, Multi-Family Property and Other Property Type of Property Maximum Special Taxes for FY 2010-112 Single Family Property Condominium Property Multi-Family Property Other Property $64.35 per Parcel $38.61 per Parcel $1.29 per linear foot of Street Frontage $1.78 per linear foot of Street Frontage Maximum Special Taxes for Tax Zone 21 (Taxable Parcels with No Street Lights located Near or Adjacent to the Taxable Parcels) For Single Family Property, Condominium, Multi-Family Property and Other Property Type of Property Maximum Special Taxes for FY 2010-112 Single Family Property Condominium Property Multi-Family Property Other Property $16.09 per Parcel $9.65 per Parcel $64.35 per Acre $89.10 per Acre 1 Tax Zones that are added to CFD No. 2010-1 as a result of future annexations will have their Maximum Special Taxes determined during the annexation process, consistent with the requirements of Section 53339.3(d) of the Act. This Attachment 1 shall be updated to reflect any new Tax Zone. 2 Beginning in January 2011, and each January thereafter, the Maximum Special Taxes shown in this Attachment 1 shall be adjusted by applying the greater of (i) the increase, if any, in the Local Consumer Price Index (CPI) for the San Francisco-Oakland-San Jose Area for All Urban Consumers that had occurred since January of the prior year, or (ii) the increase, if any, in the Engineering News Record’s Common Labor Index that had occurred since January of the prior year. Each annual adjustment of the Maximum Special Taxes shall become effective on the following July 1. Attachment 2 County of Contra Costa Community Facilities District No. 2010-1 (Countywide Street Lighting) Identification of Tax Zones Tax Zone Assessor’s Parcels Included in Tax Zone1 1 380-260-001-9 2 169-032-008-8 1 The property identified by the Assessor’s Parcel numbers listed above shall remain part of the identified Tax Zone regardless of changes in the configuration of the Assessor’s Parcels or changes to APNs in future Fiscal Years. Parcels annexed into CFD No. 2010-1 shall be assumed to be in Tax Zone No. 1, unless this Attachment 2 is otherwise updated to reflect annexed Parcels that are added to CFD No. 2010-1 and are to be included in another Tax Zone. COMMUNITY FACILITIES DISTRICT NO. 2010-1 (COUNTYWIDE STREET LIGHTING) NOTICE OF PUBLIC HEARING Notice is hereby given that on May 11, 2010, the Board of Supervisors of the County of Contra Costa (the “County”) adopted a Resolution entitled “Resolution Declaring Intention To Establish A Community Facilities District And To Authorize The Levy Of Special Taxes Pursuant To The Mello-Roos Community Facilities Act of 1982 – Countywide Street Lighting”. Reference is hereby made to the Resolution of Intention on file in the office of the Clerk of the Board of Supervisors of the County for further particulars. In the Resolution of Intention, the Board of Supervisors declared its intention to form the County of Contra Costa Community Facilities District No. 2010-1 (Countywide Street Lighting) to fund certain services related to the provisions of street lighting in the unincorporated area of the County, as more particularly identified in Exhibit B to the Resolution of Intention. The proposed boundaries of the district were identified in Exhibit A to the Resolution of Intention, and the Resolution of Intention identified in Exhibit C to the Resolution a proposed special tax to be levied on real property to be included in the district to pay for the costs of the services. In the Resolution of Intention, the Board of Supervisors provided that the levy of the special tax will be subject to a mailed ballot election among the landowners in the district. The Board of Supervisors ordered the Deputy Director of Public Works of the County or the Deputy Director’s designee to prepare a report on the district, and the Board of Supervisors called for a public hearing on the district to occur on Tuesday, June 15, 2010, at the hour of 9:30 a.m. or as soon thereafter as the matter may be heard, in the regular meeting place of the Board of Supervisors, 651 Pine Street, Martinez, California. At the hearing, the testimony of all interested persons or taxpayers for or against the establishment of the district, the extent of the district or the furnishing of specified types of services by the district will be heard. Any person interested may file a protest in writing with the Clerk of the Board of Supervisors during or prior to the public hearing. If fifty percent or more of the registered voters, or six registered voters, whichever is more, residing in the territory proposed to be included in the district, or the owners of one-half or more of the area of land in the territory proposed to be included in the district and not exempt from the special tax file written protests against the establishment of the district and the protests are not withdrawn to reduce the value of the protests to less than a majority, the Board of Supervisors shall take no further action to establish the district or authorize the special taxes for a period of one year from the date of the decision of the Board of Supervisors, and if the majority protests of the registered voters or the landowners are only against the district furnishing of a type or types of services within the district, or against levying a specified special tax, those types of services, or the specified special tax, will be eliminated from the proceedings to form the district. Dated: __________________, 2010 /s/ David Twa Clerk of the Board of Supervisors and County Administrator