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HomeMy WebLinkAboutCC AG PKT 2003-01-13 #K ,' V AGENDA REPORT l DATE: January 13, 2003 TO: Honorable Mayor and City Council THRU: John B. Bahorski, City Manager FROM: Douglas A. Danes, P.E., Director of Public Works /City Engineer SUBJECT: SEAL BEACH BLVD. AND LAMPSON AVE. COMMUNITY FACILITIES DISTRICT NO. 2002-02 SUMMARY OF REQUEST: The proposed action will: 1. Adopt the Resolution of Intention of the City of Seal Beach to Establish City of Seal Beach Community Facilities District No. 2002 -02 which sets forth the City's intent to establish a community facilities district (CFD) pursuant to the Mello - Roos Community Facilities Act of 1982. The proposed CFD is being created to finance the City's maintenance of landscaping facilities installed within the public right -of -way as part of the Bixby Old Ranch Town Center and Country Club developments. The subject landscaping facilities were installed in the center median and the easterly parkway on Seal Beach Blvd. from Old Ranch Parkway to Plymouth Dr./Rossmoor Center Way, and in the center median, and southerly parkway on Lampson Ave. approximately 1600 feet easterly, and in the City owned property along the northerly side of the I -405 north bound off ramp at Seal Beach Blvd. 2. Establish the name of the proposed CFD to be "City of Seal Beach Community Facilities District No. 2002 -02 (Seal Beach Boulevard/Lampson Avenue Landscape Maintenance)." 3. Adopt the map entitled "Proposed Boundaries of the City of Seal Beach Community Facilities District No. 2002 -02 (Seal Beach Boulevard/Lampson Avenue Landscape Maintenance)," which indicates the boundary of the proposed district, and direct the City Clerk to execute the map certificates and to have the map recorded in the records of the County Recorder. 4. Establish the services proposed to be provided within the CFD. 5. Establish the special tax assessment required to pay the expenses of the CFD. Agenda Item 6. Set the future date of a public hearing to be held by the City Council to hear public comments on the establishment, extent, and the rate and method used to calculate the proposed special tax assessments of the CFD. 7. Direct the City officer responsible for the proposed services to file a study report with the City Council of the proposed CFD, prior to the public hearing, which details the services and the estimated cost to finance the services of the CFD. 8. Provide for the acceptance of advances of funds or work from any source for the payment of any costs incurred by the City in creating the CFD, and allows for the reimbursement of such advanced funds. 9. Direct the City Clerk to publish a notice of Hearing to notify the public of the Public Hearing time, date, and place of the proposed CFD. 10. Direct the City Clerk to mail a copy of the Notice of Public Hearing of the proposed CFD to each registered voter and to each land owner within the proposed CFD. 11. Establish that if the City Council determines to form the CFD, a special election will be held within the CFD to authorize the levy of the special tax assessment. 12. Establish that the City Council finds that the public interest will not be served by allowing property owners within the CFD to perform work proposed to be performed by the CFD. BACKGROUND: As part of the Bixby Old Ranch Town Center and Country Club developments, the Bixby Ranch Co. installed landscaping facilities within the public right -of -way including the center medians, parkways, and city owned property along the development frontages on Seal Beach Blvd., Lampson Ave., and along the I -405 north bound off ramp at Seal Beach Blvd. The Bixby Ranch Co. was required, as part of the development, to install the landscaping facilities, and upon approval of the City to turn the facilities over to the City of Seal Beach for maintenance. Additionally the Bixby Ranch Co. was required to participate in the establishment of a CFD for the financing of the City's maintenance cost of the landscaping facilities. The CFD establishes a special tax assessment on the private properties that were part of the Bixby Old Ranch Town Center and Country Club developments that benefit from the landscaping facilities with such assessments proceeds going to the City of Seal Beach that cover the cost of maintenance of the landscape facilities. Agenda Item FISCAL IMPACT: There are no fiscal impacts to the City since the CFD will provide funds to cover all of the associated landscape facilities maintenance. No residential properties are within the CFD. If the CFD is not formed, the City could become responsible for the cost of the maintenance. RECOMMENDATION: Approve the Resolution of Intention of the City of Seal Beach to Establish City of Seal Beach Community Facilities District No. 2002 -02. Prepared By: Reviewed By: M K. Vukojevic, P.E. 4/ Do 1as A. D. s, P.E., Deputy City Engineer Director of Public Works /City Engineer NOTED AND APPROVED: J•I" orski, City anager Agenda Item �� � 1 lip gg = � f % -I x 41 iis bdi ,,, vs a �� 1 4 Hile i i I•• ! l'. < 11101 g . 1 ' P 11 31 a X:01 zil P ag �� i R R ° ¢ I. `! . H tl 4„.. R 4 \ o_ N Fm Q h . A n 1° 1 4 th! 1 ` • s , & S E n ante 1.13V35 - nom R aye was „viro () F F • d B G RESOLUTION NO. . RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH TO ESTABLISH CITY OF SEAL BEACH COMMUNITY FACILITIES DISTRICT NO. 2002-02 (SEAL BEACH/LAMPSON AVENUE LANDSCAPE MAINTENANCE) AND TO AUTHORIZE THE LEVY OF A SPECIAL TAX WITHIN SUCH DISTRICT RECITALS: WHEREAS, the CITY COUNCIL (the "City Council ") of the CITY OF SEAL BEACH (the "City ") desires to undertake proceedings to establish a community facilities district pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the California Government Code (the "Act "), to finance services to serve the area of land hereinafter described; and WHEREAS, the Act authorizes the City Council to establish a community facilities district and to levy special taxes within that district. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. Intention. The City Council hereby declares its intention to conduct proceedings for the formation of a community facilities district under the terms of the Act. Section 2. Name of District. The name of the proposed community facilities district is "City of Seal Beach Community Facilities District No. 2002 -02 (Seal Beach Boulevard/Lampson Avenue Landscape Maintenance)" (the "District "). Section 3. Boundaries of District. The exterior boundaries of the District are shown on that certain map now on file in the office of the City Clerk entitled "Proposed Boundaries of City of Seal Beach Community Facilities District No. 2002 -02 (Seal Beach Boulevard/Lampson Avenue Landscape Maintenance)," which map indicates by a boundary line the extent of the territory included in the proposed District and shall govern for all details as to the extent of the District. On the original and one copy of such map, the City Clerk shall endorse the certificate evidencing the date and adoption of this Resolution. The City Clerk shall file the original of such map in her office and, within 15 days after the adoption of this Resolution, the City Clerk shall file a copy of such map so endorsed in the records of the County Recorder, County of Orange, State of California and in any event this map shall be filed no later than 15. days before the public hearing specified in Section 6 below. Section 4. Services. The services proposed to be provided within the District and to be financed under the Act shall consist of those services set forth on Exhibit "A," attached hereto 1 S7296\1001\711998.2 and incorporated herein by reference (the "Services "). The City Council hereby finds that the proposed Services are in addition to those provided in the territory of the District prior to the establishment of the District and the proposed Services will not supplant services already available within that territory. Section 5. Special Tax. a. Except where funds are otherwise available, it is the intention of the City Council to levy annually in accordance with procedures contained in the Act a special tax (the "Special Tax ") within the District sufficient to pay for the Services, including incidental expenses. The Special Tax will be secured by recordation of a continuing lien against all non - exempt real property in the District and will be collected in the same manner as ordinary ad valorem property taxes are collected, or in such other manner as may be provided by the City Council including, without limitation, direct billing of the affected property owner, and shall be subject to the same penalties, procedure, sale and lien priority in case of delinquency as applicable for ad valorem property taxes. In the first year in which such a Special Tax is levied, the levy shall include a sum sufficient to repay to the City all amounts, if any, transferred to the District pursuant to Section 53314 of the Act and interest thereon. b. The proposed rate and method of apportionment of the Special Tax (the "Rate and Method ") among parcels of real property in the District, is shown in Exhibit "B," attached hereto and incorporated herein by reference. The Special Tax is based on the cost of making the proposed Services available to each non - exempt parcel of real property in the District. The City Council hereby determines the rate and method of apportionment of the Special Tax for the District set forth in Exhibit "B" to be reasonable. Section 6. Hearing. A public hearing (the "Hearing ") on the establishment of the District, the extent of the District, the furnishing of Services within the District, and the Rate and Method shall be held on February 10, 2003, at 7:00 p.m., or as soon thereafter as practicable, at the chambers of the City Council of the City of Seal Beach, 211 Eighth Street, Seal Beach, California 90740. At the Hearing, any interested person or taxpayer, including all persons owning lands or registered to vote within the proposed District, may appear and be heard. Section 7. Report. The City officer who will be responsible for the Services to be financed by the District, if it is established, is hereby directed to study the proposed District and, at or before the time of the above - mentioned Hearing, file, or cause to be filed, a report with the City Council, which is to be made a part of the record of the Hearing, containing the following: (a) a brief description of the Services which will in his or her opinion be required to adequately meet the needs of the District; and (b) an estimate of the fair and reasonable cost of financing the Services. 2 57296 \1001 \711998.2 Section 8. Advances. The City may accept advances of funds or work in -kind from any source, including, but not limited to, private persons or private entities, and is authorized and directed to use such funds or that work in -kind for any authorized purpose, including, but not limited to, paying any cost incurred by the City in creating the District. The City may enter into an agreement with the person or entity advancing the funds or work -in -kind, to repay all or a portion of the funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work -in -kind, as determined by the City Council, with or without interest. Section 9. Published Notice. The City Clerk is hereby directed to publish a notice ( "Notice ") of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of the proposed District. Such Notice shall be substantially in the form specified in Section 53222 of the Act. Publication of the Notice shall be completed at least 7 days prior to the date of the Hearing. Section 10. Mailed Notice. The City Clerk is hereby directed to send a copy of the Notice of the Hearing by first -class mail, postage prepaid, to each registered voter and to each landowner within the proposed District as shown on the last equalized assessment roll. Mailing of the Notice shall be completed at least 15 days prior to the date of the Hearing. Section 11. Voting. Should the City Council determine to form the District, a special election will be held within the District to authorize the levy of the Special Tax in accordance with the procedures contained in Section 53326 of the Act. If held, the proposed voting procedure at the election will be a landowner vote with each landowner who is the owner of record of land within the District at the close of the Hearing, or the authorized representative thereof, having one vote for each acre or portion thereof owned within the District. Ballots for the special election may be distributed by mail with return postage prepaid or by personal service. Section 12. Election to Perform Work. Pursuant to Section 53329.5(c) of the Act, the City Council finds that, in its opinion, the public interest will not be served by allowing property owners in the District to enter into a contract to perform work pursuant to Section 53329.5(a) of the Act. 3 87296 \1001 \711998.2 • • PASSED, APPROVED AND ADOPTED this day of , 2002. Mayor ATTEST: City Clerk 4 S7296 \1001 \711998.2 • EXHIBIT "A" DESCRIPTION OF SERVICES The cost of the Services shall include incidental expenses, including the costs associated with forming the District, determination of the amount of the Special Tax, collection of the Special Tax, costs incurred in order to carry out the authorized purposes of the District and any other expenses incidental to the completion and inspection of the authorized work. . Services The services are the maintenance of the parkways along the east side of Seal Beach Boulevard and the median in Seal Beach Boulevard adjacent to the District, the parkways along Lampson Avenue and the medians in Lampson Avenue adjacent to the District, and the parkway along the north side of the I -405 on/off -ramp adjacent to the District. Maintenance means the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of landscape and hardscape improvements, including repair, removal or replacement of all or part of any of the landscaping, lighting facilities, or appurtenant facilities; providing for the life, growth, health and beauty of the landscaping, including cultivation, irrigation, trimming, spraying, fertilizing and treating for disease or injury; the removal of trimmings, rubbish, debris and other solid waste; and the cleaning, sandblasting, and painting of improvements to remove or cover graffiti. This includes the furnishing of water for the irrigation and the furnishing of electric current or energy, for any lights or irrigation facilities or appurtenant facilities. S7296\1001\711998.2 A -1 EXHIBIT "B" RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX S7296\1001\711998.2 B -1 City of Seal Beach EXHIBIT "B" December 2, 2002 CFD No. 2002 -02 (Seal Beach Blvd. l Lampson Ave. Landscape Maintenance) Page B -1 Rate and Method of Apportionment of Special Taxes Rate and Method of Apportionment of Special Taxes Community Facilities District No. 2002 -02 (Seal Beach Blvd. l Lampson Ave. Landscape Maintenance) of the City of Seal Beach, County of Orange A Special Tax shall be levied on each Parcel of Taxable Property within Community Facilities District No. 2002 -02 (Seal Beach Blvd. / Lampson Ave. Landscape Maintenance) of the City of Seal Beach, County of Orange (the "District "), and collected according to the special tax liability determined by the City of Seal Beach (the "City ") through the application of the following procedures. All of the property within the District, unless otherwise exempted by law or the express provisions of the Rate and Method of Apportionment expressed below, shall be taxed to the extent and in the manner provided below. Unless otherwise indicated, all capitalized terms shall have the meanings set forth in Section C of this Rate and Method of Apportionment entitled "Definitions ". It is intended that all Special Taxes applicable to Parcels be collected in the same manner and at the same time as ordinary ad valorem property taxes of the City and that special taxes so levied will be subject to the same penalties and procedures, sale and lien priority in case of delinquency as is provided for ad valorem taxes of the City. Notwithstanding the foregoing, the City may elect to collect the Special Taxes at such other times or in such other manner as necessary or convenient to satisfy the obligations of the District. A._ Maximum Special Tax The maximum Special Tax that may be levied in the Fiscal Year beginning July 1, 2003 and in each Fiscal Year thereafter on each parcel shall not exceed the base maximum special tax shown below, adjusted pursuant to the annual adjustment shown below: Base Maximum Special Tax: Tax Area A - $638 per gross land acreage multiplied by the Land Area of the Parcel. Tax Area B - $84 per gross land acreage multiplied by the Land Area of the Parcel. Tax Area C - $11,400 per gross land acreage multiplied by the Land Area of the Parcel. Annual Adjustment: Each Fiscal Year, commencing with the Fiscal Year beginning July 1, 2003, the maximum Special Tax shall be adjusted by the annual change in the Consumer Price Index for all Urban Consumers in the Los Angeles- Riverside -Orange County area, as measured between March of the second Fiscal Year prior to that Fiscal Year and March of the Fiscal Year immediately preceding that Fiscal Year. B. Calculation of Special Tax Levy On or about July 1 of each year, commencing July 1, 2003, but in any event in sufficient time to include the levy of the Special Taxes on the County's secured tax roll, the District Administrator shall classify each Parcel within the District as Taxable Property or Non - Taxable Property. Parcels subject C: \Documents and Settings \mvukojevic \Local Settings \Temporary Internet Files \OLK2 \Bixby OM RMAS.doc • City of Seal Beach EXHIBIT "B" December 2, 2002 CFD No. 2002-02 (Seal Beach Blvd. / Lampson Ave. Landscape Maintenance) Page B -2 Rate and Method of Apportionment of Special Taxes to levy of the Special Tax shall be determined by the District Administrator based upon the records of the County Assessor as of the March 1 preceding such July 1. The District Administrator shall then determine the estimated aggregate Special Tax Requirement required for each Fiscal Year for each Tax Area commencing July 1, 2003, and levy on each Parcel, as follows: Step 1: Classify by Tax Area each Parcel of Taxable Property in the District. Step 2: Determine the Land Area of Taxable Property in each Tax Area on a Parcel -by- Parcel basis, and determine the total Land Area of Taxable Property in each Tax Area. Step 3: Calculate the Annual Special Tax Rate for Taxable Property for each Tax Area by dividing the estimated aggregate Special Tax Requirement for that Tax Area by the total Land Area of Taxable Property in that Tax Area. Step 4: The annual Special Tax for each Parcel shall be the lesser of: (i) the total Taxable Property Land Area of that Parcel multiplied by the Annual Special Tax Rate for Taxable Property in the Tax Area in which the Parcel is located; or (ii) the maximum Special Tax calculated pursuant to Section A. The resultant sum is the annual Special Tax for the Taxable Property. C. Definitions Act means the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California. Administrative Expenses means any or all of the following: the expenses of the City, whether by the City or designee of the City, or both, in carrying out its duties with respect to the District (including, but not limited to, the computation, levy and collection of the Special Taxes) including the fees and expenses of its counsel, any fees of the County related to the District or the collection of Special Taxes, an allocable share of the salaries of the City staff directly related thereto and a proportionate amount of City general administrative overhead related thereto, any amounts paid by the City from its general funds with respect to the District and all other costs and expenses of the City incurred in connection with the discharge of its duties in any way related to administration of the District. Annual Special Tax Rate means the special tax rate required in a Tax Area to generate the Special Tax Requirement in a given Fiscal Year, as calculated in Step 3 of Section B for that Tax Area. Boundary Map means the map on file with the City Clerk showing the proposed boundaries of the District. C: \Documents and Settings\mvukojevic \Local Settings \Temporary InternetFiles \OLK2 \Bixby OM RMA5.doc City of Seal Beach EXHIBIT "B" December 2, 2002 CFD No. 2002 -02 (Seal Beach BIvd. 1 Lampson Ave. Landscape Maintenance) Page B -3 Rate and Method of Apportionment of Special Taxes City means the City of Seal Beach. County means the County of Orange. County Assessor means the Assessor of the County of Orange. District means Community Facilities District No. 2002 -02 (Seal Beach Blvd. / Lampson Ave. Landscape Maintenance) of the City of Seal Beach, County of Orange. District Administrator is any firm, entity, person or persons who the City may hire or appoint from time to time to compute and provide for the levy and collection of the Special Taxes within the District. Fiscal Year means the period starting on July 1 and ending the following June 30. Land Area means the measure of Taxable Property for a Parcel, in gross acres of land, as shown on the County Assessor's Parcel Maps. Maintenance Expenses means the expenses of the City, whether by the City or designee of the City, or both, in the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing, including repair, removal or replacement of all or part of any of the landscaping, lighting facilities, or appurtenant facilities; providing for the life, growth, health and beauty of the landscaping, including cultivation, irrigation, trimming, spraying, fertilizing and treating for disease or injury; the removal of trimmings, rubbish, debris and other solid waste; and the cleaning, sandblasting, and painting of improvements to remove or cover graffiti. This includes the furnishing of water for the irrigation and the furnishing of electric current or energy, for any lights or irrigation facilities or appurtenant facilities. Non - Taxable Property means property within the District boundaries that is exempt from the special tax pursuant to law at the time of district formation, or that is a. Owned by, conveyed to or irrevocably offered for dedication to a public agency, or b. Utilized exclusively for landscaping purposes, or - c. Utilized for residential purposes. Parcel means any County Assessor's parcel or portion thereof that is within the boundaries of the District based on the equalized tax rolls of the County. Special Tax means the total special tax levied on each Parcel with Taxable Property per Fiscal Year to fund the Special Tax Requirement. Special Tax Requirement means, for any Tax Area, the amount required in any Fiscal Year for the District to pay for authorized Maintenance Expenses and Administrative Expenses, as well as any shortfall from the previous year's budget. In arriving at the Special Tax Requirement, the District Administrator shall take into account the reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year and shall give a credit for funds available to reduce the annual Special Tax levy. C: \Documents and Settings\mvukojevic \Local Settings \Temporary Internet Files \OLK2 \Bixby OM RMA5.doc City of Seal Beach EXHIBIT "B" December 2, 2002 CFD No. 2002 -02 (Seal Beach Blvd. / Lampson Ave. Landscape Maintenance) Page B -4 Rate and Method of Apportionment of Special Taxes Tax Area A means the properties within Tract No. 15767 (as shown on the Boundary Map) funding the Maintenance Expenses associated with the maintenance of the adjacent parkways along Seal Beach Boulevard and the median in Seal Beach Boulevard. Tax Area B means the properties comprising the Old Ranch Golf Course (as shown on the Boundary Map) funding the Maintenance Expenses associated with the maintenance of the adjacent parkways along Seal Beach Boulevard, the median in Seal Beach Boulevard and half of the median in Lampson Avenue. Tax Area C means the properties within Parcel Map 307 -5 (as shown on the Boundary Map) . funding the Maintenance Expenses associated with the maintenance of the adjacent parkways along Seal Beach Boulevard, Lampson Avenue and the I -405 Freeway on/off ramp, the median in Seal Beach Boulevard, and half of the median in Lampson Avenue. Taxable Property is all real property within the boundaries of the District that is not classified as Non - Taxable Property. • C: \Documents and Settings\mvukojevic \Local Settings \Temporary Internet Files \OLK2 \Bixby OM RMAS doc