HomeMy WebLinkAboutItem 01 - Rate and Method of Apportionment Amendment for CFD No. 2019-1 (San Luis Ranch)Item 1
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Department Name:
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Estimated Time:
Finance
2001
April 20, 2021
Public Hearing
15 minutes
FROM: Brigitte Elke, Finance Director
Prepared By: Esteban Cano-Gutierrez, Financial Analyst — Infrastructure Financing
SUBJECT: RATE AND METHOD OF APPORTIONMENT AMENDMENT APPROVAL
FOR CITY OF SAN LUIS OBISPO COMMUNITY FACILITIES DISTRICT
NO. 2019-1 (SAN LUIS RANCH)
RECOMMENDATION
Advance the Rate and Method of Apportionment (the "RMA") amendment of City of San Luis
Obispo Community Facilities District No. 2019-1 (San Luis Ranch) (the "CFD") by the
following actions:
1. Adopt a Resolution Calling a Special Mailed -Ballot Election, related to change proceedings
within City of San Luis Obispo Community Facilities District No. 2019-1 - San Luis Ranch
(Attachment A); and
2. Adopt a Resolution of Change relating to City of San Luis Obispo Community Facilities
District No. 2019-1 - San Luis Ranch if sufficient landowner support is received (Attachment
B); and
3. Introduce an Ordinance to levy the Special Tax for the Fiscal Year 2021-2022 and following
fiscal years solely within the boundaries of the San Luis Ranch CFD (Attachment Q.
DISCUSSION
Background
On March 16, 2021, the City Council adopted a Resolution of Consideration (Resolution No.
11233 - 2021 series) to amend the Rate and Method of Apportionment for City of San Luis
Obispo Community Facilities District No. 2019-1 (San Luis Ranch). The RMA needed to be
updated to include: (1) addition of an undeveloped special tax on the property expected to be
developed into for -sale efficiency units, (2) a leveling of the special tax for the multifamily
residential units so that it is based on type, not square footage, and (3) a clarification to the
treatment and assessment of any low-income units added to the CFD after the date of the RMA.
Since the formation of the CFD in 2019, some permissible changes to the planned development
have occurred. As a result, the developers requested the aforementioned amendments to the
RMA to better reflect the planned development. Specifically, these changes to the development
plan included all the multi -family units being a "for -sale" product within the high -density
residential area that were initially expected to be maintained by the builder as units for rent.
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Additionally, the City Council had authorized the relocation of 26 affordable housing units from
the multi -family site to the commercial site as part of a mixed -use project to be developed by
People's Self -Help Housing Corporation. The site planned for development into for -rent and 26
affordable housing units were previously excluded from the undeveloped special tax but can now
be included with this change in development.
The City's Special Tax Consultant for the CFD has prepared an Amended Hearing Report
(Attachment D) to explain the effect of the amendment to the RMA.
Voter/Landowner Approval to amend the RMA
The action before the City Council is to complete the process required to update the RMA.
According to the Act, for the proposed amendments to the RMA to take effect, a public hearing
must be held and the qualified electors within the CFD must approve the proposed amendments
by a two-thirds vote. If fewer than 12 voters are located in the area, approval by the landowners
is required. At this time, no residents are living within the proposed CFD area, therefore the
election corresponds to the landowners within the CFD.
During the meeting on April 20, 2020, the Mayor will conduct the process based on required
order of procedures according to the Act. First, the City Council will hold a public hearing to
inquire into the amendment of the RMA. Next, the City Council will seek approval of the
property owners with the adoption of a Resolution calling a Special Mailed -Ballot Election.
Giving that there are no property owners yet, the Act allows for ballots to be sent to the
landowners ahead of the adoption of the Resolution. The landowners have therefore completed
the ballots and return the results to the City Clerk on the date hereof.
Following the reporting out of the results of the election by the City Clerk, the City Council may
proceed with adopting a Resolution of Change to amend the RMA for the San Luis Ranch CFD,
if two-thirds of the landowners effectively supported the amendment.
Approval of Ordinance
The City Council has previously adopted its Ordinance No. 1661 (2019 Series) on April 16,
2019. In connection with the amended RMA, the City will introduce a new Ordinance directing
and effecting the levy of the special tax on the secured property tax roll of the County in
accordance with the amended RMA. The City Council will either need to conduct or may waive
the first reading.
Next Steps in the Bond Issuance Process
Once the amended RMA is approved and the Resolution adopted, the City Council can move
forward with the issuance of infrastructure bonds for the CFD. The request to issue bonds is
scheduled before the City Council on April 20, 2021, following the action within this report. At
the May 4, 2021, Council meeting, the City Council will conduct the second reading and adopt
the Ordinance levying the special tax.
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Policy Context
The approved San Luis Ranch Specific Plan and related entitlements are consistent with the
City's s adopted General Plan, and findings to that effect were made in both the original project
approved in July 2017 as well as the amended project approval in August 2018. An evaluation of
the project's consistency with General Plan policies is discussed at length in Section 4.9 of the
certified Final Environmental Impact Report.
The Specific Plan requires that funding mechanisms be included to ensure that public
infrastructure is coordinated with future development under the plan. The formation of a CFD
was consistent with this requirement. A CFD, as enabled by the Community Facilities District
Act of 1982, allows a local jurisdiction to levy a special tax within a specified area to pay for
public services and/ or infrastructure needed within the area. Over the past three decades, CFDs
have become a common mechanism for cities to fund services and finance development -related
infrastructure, and the use of a CFD, in this case, is consistent with the City's Economic
Development Strategic Plan and the General Plan.
The General Plan provides specific policies related to the funding of infrastructure noted below:
1.13.6. Required Plans: The City shall not allow the development of any newly annexed
private land until the City has adopted a specific or development plan for land uses, open
space protection, roads, utilities, the overall pattern of subdivision, and financing of
public facilities for the area.
1.13.9. Costs of Growth: The City shall require the costs of public facilities and services
needed for new development to be borne by the new development unless the community
chooses to help pay the costs for a certain development to obtain community -wide
benefits. The City shall consider a range of options for financing measures so that new
development pays its fair share of costs of new services and facilities which are required
to serve the project, and which are reasonably related to the new growth attributable to
the development.
The revisions recommended to the RMA are consistent with these General Plan policies and with
the City's Local Goals and Policies for Community Facilities Districts.
Public Engagement
The Planning Commission considered and provided input on the originally approved San Luis
Ranch project on nine occasions from 2014 through 2017, before finally recommending approval
in June 2017. As noted under "Previous Council or Advisory Body Action," the approved project
was considered in a variety of public workshops and hearings before many of the City's advisory
bodies from 2014 through project approval as amended in 2018.
On February 19, 2019, the City Council held a public hearing regarding the potential formation
of a CFD, after which it adopted a Resolution of Intention to form a CFD.
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For the proposed amendments to take effect, the public hearing must be held and the qualified
electors within the Community Facilities District must approve the proposed amendments by a
two-thirds vote. As the Community Facilities District is uninhabited or inhabited by fewer than
12 registered voters, the qualified electors are, according to the Act, the owners of property
within the CFD.
CONCURRENCE
The Community Development Department concurs with the recommendations contained within
this report.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this
report, because the action does not constitute a "Project" under CEQA Guidelines Sec. 15378.
FISCAL IMPACT
Budgeted: Yes/No Budget Year: 2021
Funding Identified: Yes/No
Fiscal Analysis:
Funding Sources
Current FY Cost
Annualized
On -going Cost
Total Project
Cost
General Fund
N/A
State
Federal
Fees
Other:
Total
There will be no fiscal impact related to the amendment. The RMA was drafted by a special tax
consultant who, together with the City's bond counsel and Municipal Advisor also engaged in
this effort, will get paid from developer deposits and/or the special tax proceeds for the CFD.
The City's costs for establishing and administering the San Luis Ranch CFD and related efforts
will also be reimbursed from bond proceeds until the special tax is assessed through the County
tax roll. The financial analysis conducted for the bond issuance process has considered and
budgeted these costs.
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ALTERNATIVES
1. Do not adopt the Proposed Resolutions and do not conduct the first reading of the
Ordinance. The City Council could choose not to adopt the proposed resolution, in which
case the CFD process is not completed. In this case, the project will not move forward
without the amendment to the Rate Method of Apportionment to increase the Special Tax
assessment to, among other things, provide for an undeveloped tax on all of the planned
multifamily housing within the Community Facilities District. This action would also impair
the ability to build the Prado Road Interchange in the near future since that project depends in
part on fees generated by the approved development.
2. Direct modifications and continue the Hearing to a Date Certain. The City Council may
continue the hearing to a date certain if it feels additional technical information is needed to
complete the CFD process. If additional information is needed, the direction should be
provided to staff so that it can be presented on that date.
Attachments:
a - Draft Resolution - Calling a Special Mailed Ballot Election
b - Draft Resolution of Change
c - Draft Ordinance - Levy the Special Tax
d - COUNCIL READING FILE - Amended Hearing Report
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RESOLUTION NO. _ (2021 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, CALLING A SPECIAL MAILED -BALLOT
ELECTION RELATED TO CHANGE PROCEEDINGS WITHIN CITY OF
SAN LUIS OBISPO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (SAN
LUIS RANCH)
WHEREAS, the City Council (the "City Council") of the City of San Luis Obispo (the
"City") conducted proceedings under and pursuant to the terms and provisions of the Mello -Roos
Community Facilities Act of 1982, as amended (being Chapter 2.5, Part 1, Division 2, Title 5 of the
Government Code of the State of California), and all laws amendatory thereof or supplemental
thereto (the "Act"), (i) to form its Community Facilities District No. 2019-1 (San Luis Ranch) (the
"Community Facilities District"), (ii) to authorize a special tax to finance certain public facilities,
(iii) to authorize the issuance of debt to finance the facilities, and (iv) to establish the appropriations
limit for the Community Facilities District, all as set forth in the City Council's Resolution No.
10998 (2019 Series) (the "Resolution of Formation") and Resolution No. 10999 (2019 Series) (the
"Resolution Deeming it Necessary to Incur Bonded Indebtedness"), both adopted on April 2, 2019;
and
WHEREAS, on March 16, 2021, the City Council adopted its Resolution No. 11233 (2021
Series) (the "Resolution of Consideration") in which it determined to consider replacing the Rate and
Method of Apportionment set forth in Exhibit B to the Resolution of Formation with the Amended
Rate and Method of Apportionment set forth in Exhibit A to the Resolution of Consideration (the
"Proposed Amendments"); and
WHEREAS, the Resolution of Consideration set a public hearing to be held on April 20,
2021; and
WHEREAS, the Public Hearing has been held as scheduled and all persons interested were
permitted to testify and to submit written protests to the Proposed Amendments; and
WHEREAS, the City Council determined that there was no majority protest under Section
53337 of the Government Code of the State of California, and thus the City Council is permitted to
continue with these proceedings; and
WHEREAS, in order for the Proposed Amendments to be effective, they must be submitted
to an election of the qualified electors of the Community Facilities District; and
WHEREAS, a Certificate Re: Landowners (the "Certificate re: Landowners") has been filed
with the City Clerk (the "Clerk") and submitted to the City Council, certifying that during the 90
days preceding the close of the Public Hearing on April 20, 2021, there were no persons registered to
vote within the territory of the Community Facilities District; and
IN
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Resolution No. (2021 Series) Page 2
WHEREAS, a Certificate of Clerk re: Receipt of Property Owner Waiver and Consent
Forms, has been submitted by the Clerk, stating that each landowner, or an authorized representative
of each landowner, has filed with the Clerk a properly executed Waiver and Consent (as defined
below) in substantially the form attached hereto as Exhibit B, and by this reference incorporated
herein.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis
Obispo, as follows:
Section 1. The above recitals are true and correct, and the City Council so finds and
determines.
Section 2. The City Council accepts the Certificate re: Landowners filed in these proceedings
and finds, in accordance therewith, that during the 90 days just past, there were no registered voters
residing within the boundaries of the Community Facilities District. Accordingly, under Section
53326(b) of the Government Code of the State of California, the qualified electors of the Community
Facilities District for the proposed special election shall be the owners of land within the Community
Facilities District.
Section 3. The City Council further finds and determines that the owners of land within the
Community Facilities District (the "Landowners") are the landowners set forth in the attachment to
the Certificate re: Landowners and that the attachment correctly sets forth the amount of property
owned by each Landowner and the number of votes to which each Landowner is entitled pursuant to
Section 53326(b), being the number of acres owned rounded up to the next whole acre.
Section 4. The City Council hereby approves the form of Waiver and Consent Shortening
Time Periods and Waiving Various Requirements for Conducting a Mailed -Ballot Election (the
"Waiver and Consent") by which the time limits and related requirements respecting preparation and
distribution of election materials are waived, a form of which is attached hereto as Exhibit B. The
City Council hereby finds that the rights, procedures, and time periods therein waived are solely for
the protection of the qualified electors and may be waived by the qualified electors under Section
53326(a) and 53327(b) of the Act and under other provisions of law dealing with waiver generally,
and that the Waiver and Consent constitutes a full and knowing waiver, by any qualified elector who
has executed the form, of those rights, procedures, and time periods.
Section 5. The City Council further finds and determines, based on a Certificate of Clerk re:
Receipt of Property Owner Waiver and Consent Forms provided this date by the Clerk that each
Landowner, or an authorized representative of each Landowner, has filed with the Clerk a properly
executed Waiver and Consent in substantially the form of Exhibit B hereto. The City Council
therefore is establishing the procedures and time periods for this special mailed -ballot election
without regard to statutory schedules.
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Resolution No. (2021 Series) Page 3
Section 6. Pursuant to Sections 53338(a) and 53326 of the Government Code of the State of
California, the City Council hereby calls an election, to be held and conducted upon adoption of this
Resolution, and sets April 20, 2021, as the election date. Pursuant to Section 53326 of the
Government Code, the election shall be conducted by mailed ballot; provided that personal service
of the respective ballots to authorized representatives of each Landowner is permitted under the
terms of the Waiver and Consent forms on file with the Clerk and shall therefore be permitted. The
Clerk is directed to either mail or make personal service of the ballots, in the form of the attached
Exhibit A, to each Landowner or, if one has been appointed pursuant to a Waiver and Consent, to the
Landowner's authorized representative.
Section 7. The proposition to be submitted to the qualified electors of the Community
Facilities District shall be as set forth in the form of special election ballot attached hereto as Exhibit
A.
Section 8. The Clerk is hereby designated as the official to conduct the special mailed -ballot
election pursuant to the Act and California Elections Code Sections 307 and 320 and the following
provisions:
a) The special election shall be held and conducted, and the votes canvassed and the
returns made, and the results determined, as provided herein; and in all particulars
not prescribed by this Resolution the special election shall be held and conducted and
the votes received and canvassed in the manner provided by law for the holding of
special elections consistent with the Act.
b) All Landowners within the Community Facilities District as of the close of the Public
Hearing shall be qualified to vote upon the proposition to be submitted at the special
election.
c) The special election shall be conducted as a mailed -ballot election, in accordance
with the provisions of the Act and the prior proceedings of the City taken thereunder,
and there shall be no polling places for the special election. All ballots shall be
delivered or mailed by the Clerk to the Landowners, and all voted ballots are
required to be received by the Clerk not later than 6:00 p.m. on the date of the
election in order to be counted. However, if at any time the Clerk determines that all
votes have been cast, the Clerk shall immediately declare the election closed.
d) The Clerk shall commence the canvass of the returns of the special election and
report the returns to the City Council no later than the City Council meeting of April
20, 2021.
e) The City Council may thereupon declare the results of the special election and shall
cause to be spread upon its minutes a statement of the results of the special election
as ascertained by the canvass.
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Resolution No. (2021 Series) Page 4
Section 9. This Resolution shall take effect immediately upon its adoption.
Upon motion of , seconded by , and
on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this day of
Mayor Heidi Harmon
ATTEST:
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
J. Christine Dietrick
City Attorney
2021.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of
San Luis Obispo, California, on
Teresa Purrington
City Clerk
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Resolution No. (2021 Series)
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EXHIBIT A
CITY OF SAN LUIS OBISPO
COMMUNITY FACILITIES DISTRICT NO. 2019-1 (SAN LUIS RANCH)
(CHANGE PROCEEDINGS)
SPECIAL ELECTION BALLOT
(Mailed -Ballot Election)
This ballot is for the use of ,
landowners owning land within City of San Luis Obispo Community Facilities District No. 2019-1
(San Luis Ranch).
According to the provisions of the Mello -Roos Community Facilities Act of 1982 and the
resolutions of the City Council of the City of San Luis Obispo, the above -named landowners are
entitled to cast votes on this ballot.
In order to be counted, this ballot must be certified below and be returned, either by mail or
in person, before 6:00 p.m. on April 20, 2021, to:
Teresa Purrington, City Clerk
City of San Luis Obispo City Council
990 Palm Street
San Luis Obispo, California 93401
Mailing by that date will not be sufficient. The ballot must be physically received by the City
Clerk prior to the deadline in order to be counted.
AN "X" OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT,
OR THE VOTER MAY WRITE NUMBERS IN THE SPACES PROVIDED.
BALLOT MEASURE
Shall the authority previously conferred upon the City Council (the Number of votes
"City Council") of the City of San Luis Obispo by and through its City YES
of San Luis Obispo Community Facilities District No. 2019-1 (San
Luis Ranch) be changed in accordance with Resolution No. [ ]
(2021 Series) adopted by the City Council on March 16, 2021, to Number of votes
modify the special tax to be levied therein? NO
4124-5287-4283.1
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Certification
The undersigned is or are the authorized representative(s) of the above -named landowner and
is the person legally authorized and entitled to cast this ballot on behalf of the above -named
landowner.
I declare under penalty of perjury under the laws of the State of California that the foregoing
is true and correct and that this declaration is executed as of April 20, 2021.
[LANDOWNER]
By:
Name:
Title:
4124-5287-4283.1
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EXHIBIT B
WAIVER AND CONSENT
SHORTENING TIME PERIODS AND WAIVING VARIOUS
REQUIREMENTS FOR CONDUCTING A MAILED -BALLOT ELECTION
CITY OF SAN LUIS OBISPO
COMMUNITY FACILITIES DISTRICT NO. 2019-1 (SAN LUIS RANCH)
[LANDOWNER] (the "Owner") is the owner of the real property listed below by Assessor's
Parcel Number ("APN"), which comprises [all] [certain] of the land within the City of San Luis
Obispo Community Facilities District No. 2019-1 (San Luis Ranch) (the "Community Facilities
District"). The APNs are:
The Owner understands that a special mailed -ballot, landowner election will be held to
determine whether the authority conferred upon the City Council by and through the Community
Facilities District will be changed all as set forth in Resolution No. [ ] adopted by the City
Council (the "City Council") of the City of San Luis Obispo on March 16, 2021 (the Resolution of
Consideration).
The Owner requests that the election be conducted at the earliest possible date.
The Owner is the entity legally entitled and authorized to cast the ballot attributable to the
above -referenced parcels in the landowner, mailed -ballot election.
The Owner hereby waives any and all minimum time periods and requirements pertaining to
the conduct of the election pursuant to Government Code Section 53326(a).
The Owner hereby waives the preparation and distribution of an impartial analysis of the
ballot measure, as well as arguments in favor and against, under the authority of Government Code
Section 53327(b).
The Owner hereby waives the requirement to publish notice of the election under
Government Code Section 53352.
The Owner hereby waives the requirements regarding the time to mail ballots to the qualified
electors under Elections Code Section 4101, and agrees that either mailed service or personal service
of the ballot will be sufficient.
The Owner hereby waives the requirements regarding identification envelopes for the return
of mailed ballots contained in Government Code Section 53327.5.
The Owner hereby waives any and all defects in notice or procedure in the conduct of the
election, whether known or unknown (except the right to vote and to have the ballots fairly counted),
4124-5287-4283.1
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Resolution No. (2021 Series) Page 8
and states that the election is being expedited, pursuant to this Waiver and Consent, at the particular
instance and request of the Owner.
The Owner hereby consents to the levy and collection of the special tax on the above -
referenced parcels in accordance with the amended rate and method of apportionment attached as an
exhibit to the Resolution of Consideration of the Community Facilities District and hereby waives
any and all rights to challenge the inclusion of the above -referenced parcels in the Community
Facilities District and any and all other proceedings related thereto.
Finally, the Owner will execute the ballot and cast the votes assigned to the above -listed
property.
The undersigned declares under penalty of perjury under the laws of the State of California
that such person is properly authorized to execute this Waiver and Consent and to bind the Owner
thereby, and that the statements contained herein are true and correct and that this Waiver and
Consent is signed by the undersigned as of the date set forth below.
Date: April 20, 2021
[SIGNATURE TO BE NOTARIZED]
[LANDOWNER SIGNATURE BLOCK]
4124-5287-4283.1
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RESOLUTION NO. (2021 SERIES)
A RESOLUTION OF CHANGE OF THE CITY COUNCIL OF THE CITY
OF SAN LUIS OBISPO, CALIFORNIA, RELATING TO CITY OF SAN
LUIS OBISPO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (SAN
LUIS RANCH)
WHEREAS, on March 16, 2021, the City Council adopted its Resolution No. 11233
(2021 Series) (the "Resolution of Consideration") in which it determined to consider replacing
the Rate and Method of Apportionment set forth in Exhibit B to the Resolution of Formation
with the Amended Rate and Method of Apportionment set forth in Exhibit A to the Resolution of
Consideration (the "Proposed Amendments"); and
WHEREAS, pursuant to the Resolution of Consideration, City staff was directed to
engage a special tax consultant to study, or cause to be studied, the Proposed Amendments and,
at or before said public hearing, file a report with the City Council containing a brief description
of the Proposed Amendments and a brief analysis of the impact of the Proposed Amendments on
the probable special tax to be paid by the owners of lots or parcels in the Community Facilities
District; and
WHEREAS, said report was so filed with the City Council and made a part of the record
of said public hearing; and
WHEREAS, in order for the Proposed Amendments to be effective, a two-thirds
approving vote by the qualified electors within the Community Facilities District is required; and
WHEREAS, a special mailed -ballot election has been conducted within the Community
Facilities District pursuant to Resolution No. [ ] (2021 Series), adopted by the City Council
on April 20, 2021, to which reference is made for further particulars; and
WHEREAS, a Certificate of the City Clerk (the "Clerk") Re Election Results (the
"Certificate of Election Results") has been filed with the City Council; and
WHEREAS, the City Council has received, reviewed, and hereby accepts the Certificate
of Election Results; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis
Obispo, as follows:
Section 1. The above recitals are true and correct, and the City Council so finds and
determines.
Section 2. The City Council hereby finds and determines and declares that the ballot
measure submitted to the qualified electors of the Community Facilities District has been passed
and approved by those qualified electors in accordance with Sections 53338 of the Government
Code of the State of California.
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Resolution No. (2021 Series) Page 2
Section 3. The City Council hereby finds and determines and declares that the authority
conferred upon it by the Community Facilities District has been changed in accordance with the
Proposed Amendments as set forth in the Resolution of Consideration.
Section 4. The City Council hereby authorizes and directs the Clerk to cause an
Amended Notice of Special Tax Lien to be prepared and to be recorded with the County
Recorder of the County of San Luis Obispo (the "County Recorder") in accordance with the
provisions of Section 3117.5 of the Streets and Highways Code of the State of California and
Section 53338(c) of the Government Code of the State of California. The Amended Notice of
Special Tax Lien shall include, as an attachment, Exhibit A to the Resolution of Consideration
and be recorded in the County Recorder's office within fifteen days of the date of adoption of
this Resolution.
Section 5. This Resolution shall take effect immediately upon its adoption.
Upon motion of Council Member seconded by Council Member
, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this day of 2021.
Mayor Heidi Harmon
ATTEST:
Teresa Purrington, City Clerk
APPROVED AS TO FORM:
J. Christine Dietrick, City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, on
Teresa Purrington, City Clerk
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ORDINANCE NO. 2021 SERIES
AN UNCODIFIED ORDINANCE OF THE CITY OF SAN LUIS OBISPO,
CALIFORNIA, LEVYING A SPECIAL TAX FOR THE FISCAL YEAR 2021-2022
AND FOLLOWING FISCAL YEARS SOLELY WITHIN AND RELATING TO
THE CITY OF SAN LUIS OBISPO COMMUNITY FACILITIES DISTRICT NO.
2019-1 (SAN LUIS RANCH)
WHEREAS, the City Council of San Luis Obispo (the Council) conducted proceedings
under and pursuant to the terms and provisions of the Mello -Roos Community Facilities Act of
1982, as amended (Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State
of California), and all laws amendatory thereof or supplemental thereto to form its Community
Facilities District No. 2019-1 San Luis Ranch and authorized a special tax to finance certain
public facilities; and
WHEREAS, the Council also authorized the issuance of debt to finance the facilities,
and established the appropriations limit for the Community Facilities District, all as set forth in
Resolution No. 10998 (2019 Series) and Resolution No. 10999 (2019 Series) adopted on April 2,
2019; and
WHEREAS, the Council adopted Ordinance No. 1661 (2019 Series) on April 16, 2019,
to approve the levy of a Special Tax in connection with San Luis Ranch Communities Facilities
District and its approved Rate and Method of Apportionment; and
WHEREAS, on March 16, 2021, the Council adopted its Resolution No. 11233 (2021
series) (the "Resolution of Consideration") in which it determined to consider updating the Rate
and Method of Apportionment due to substantial changes in the development; and
WHEREAS, on April 20, 2021 the City Council adopted a Resolution Calling a Special
Mailed -Ballot Election, related to change proceedings within the San Luis Ranch Community
Facilities District; and
WHEREAS, the landowners within the San Luis Ranch Community Facilities District
have completed the ballots and return the results to the City Clerk with at least two-thirds
approving the amendment; and
WHEREAS, in connection with the ballot results, the City Council has therefore adopted
a Resolution of Change on April 20, 2021 related to the San Luis Ranch Community Facilities
District Rate and Method of Apportionment; and
WHEREAS, the action does not constitute a "Project" under California Environmental
Quality Act Guidelines Sec. 15378 and therefore they are not applicable.
THEREFORE, IT BE ORDAINED by the City Council of the City of San Luis Obispo
does as follows:
A
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Resolution No. (2021 Series) Page 2
SECTION 1. Pursuant to Government Code section 53340, Resolution No. 10998 (2019
Series), adopted by the City Council (the "City Council") of the City of San Luis Obispo (the
"City") on April 2, 2019 (the "Resolution of Formation"), Resolution No. 11233 (2021 Series),
adopted by the City Council on March 16, 2021 (the "Resolution of Consideration") and
Resolution No. [] (2021 Series) adopted by the City Council on April 20, 2021 (the
"Resolution of Change" and, collectively with the Resolution of Formation and the Resolution of
Consideration, the "Resolutions"), and in accordance with the Amended and Restated Rate and
Method of Apportionment of Special Tax (the "RMA") set forth in Exhibit A to the Resolution
of Consideration, relating to the City of San Luis Obispo Community Facilities District No.
2019-1 (San Luis Ranch) (the "Community Facilities District"), a special tax is hereby levied on
the Community Facilities District for the 2021-2022 fiscal year and for all subsequent fiscal
years in the amount of the maximum special tax authorized under the Resolutions and the RMA,
provided that this amount may be adjusted annually, subject to the maximum authorized special
tax under the Resolutions and the RMA.
SECTION 2. The Finance Director of the City of San Luis Obispo or designee thereof
(the "CFD Administrator") or such other officer or staff member succeeding to the duties of the
CFD Administrator with respect to the Community Facilities District, with the aid of the
appropriate officers and agents of the City and without further action of the City Council, is
authorized and directed (a) to determine each year the appropriate amount of the special tax
(pursuant to and as provided in the Resolutions and the RMA), (b) to prepare the annual special
tax roll in accordance with the Resolutions and the RMA and (c) to provide all necessary and
appropriate information to the County of San Luis Obispo (the "County") Tax Collector in
proper form, and in proper time, necessary to effect the correct and timely billing and collection
of the special tax on the secured property roll of the County; provided, that as provided in
Section 53340 of the California Government Code, the Resolutions and the RMA, the City
Council has reserved the right to utilize any other lawful means of billing, collecting, and
enforcing the special tax, including direct billing, supplemental billing, and, when lawfully
available, judicial foreclosure of the special tax lien.
SECTION 3. The appropriate officers and agents of the City are authorized to make
adjustments to the Special Tax roll prior to the final posting of each Special Tax to the County
tax roll each fiscal year, as may be necessary to achieve a correct match of each Special Tax levy
with the assessor's parcel numbers finally utilized by the County in sending out property tax
bills.
SECTION 4. The City agrees that, in the event either Special Tax is collected on the
secured tax roll of the County, the County may add its reasonable and agreed charges for
collecting the related Special Tax from the amounts collected, prior to remitting the related
Special Tax collections to the City.
SECTION 5. Taxpayers who have requested changes or corrections of the Special Tax
pursuant to Section 8 of the RMA and who are not satisfied with the decision of the CFD
Administrator (whether the CFD Administrator disagrees with the taxpayer or concludes that the
City is not authorized to consider the change requested), may appeal to the City Council. The
appeal must be in writing and fully explain the grounds of appeal and must be based solely on
the correction of mistakes in the levy based upon the status of the property, and no other appeals
will be allowed. The CFD Administrator shall schedule the appeal for consideration within a
reasonable time at a City Council meeting.
O
Packet Page 17
Item 1
Resolution No. (2021 Series) Page 3
SECTION 6. If, for any reason, any portion of this ordinance is found to be invalid, or
if the special tax is found inapplicable to any particular parcel by a court of competent
jurisdiction, the balance of this ordinance, and the application of the special tax to the remaining
parcels shall not be affected.
SECTION 7. This ordinance shall take effect and be in force immediately as a tax
measure; and before the expiration of twenty (20) days after its passage the same shall be
published in summary, with the names of the members voting for and against the same, at least
once in a newspaper of general circulation published and circulated in the Community Facilities
District.
SECTION 8. Ordinance No. 1661 (2019 Series) adopted by the City Council on April
16, 2019, is hereby superseded to the extent it is inconsistent with this ordinance.
INTRODUCED on the 20th day of April 2021, AND FINALLY ADOPTED by the
Council of the City of San Luis Obispo on the day of 2021, on the following vote:
AYES:
NOES:
ABSENT:
Mayor Heidi Harmon
ATTEST:
Teresa Purrington
City Clerk
APPROVED AS TO FORM
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, on
Teresa Purrington
City Clerk
z
Packet Page 18
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Special Tax and Rate and Method of Apportionment
Amendment
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CITY OF S�III LUIS OBISPO
Iturti �.
Recommendation
Advance the Rate and Method of Apportionment (RMA) amendment of City of San
Luis Obispo Community Facilities District No. 2019-1 (San Luis Ranch) by the
following actions:
• Adopt a Resolution Calling a Special Mailed -Ballot Election
• Adopt a Resolution of Change of the RMA
• Introduce an Ordinance to levy the Special Tax for the Fiscal Year 2021-2022
and following fiscal years
San Luis Ranch Community Facilities District
iw,-"� -
1,AY .,
7/18/2017
San Luis Ranch
Specific Plan Approval
10/18/2018
Approval of SLR site
anexx to City
2/19/2019
1st Resolution of
Intention adopted to
approve RMA
3/16/2021
Adoption of Resolution
of Consideration to
amend RMA
� :° CITY OF SHR LUIS OBISPO
�4rs o4
7/17/2018
Development Agreement
Approval
11 /27/2018
First phase Final Tract
Map Approval
4/2/2019
Public Hearing to
establish district and call
1st election -Special Tax
Levy Approval
Today
Rate and Method of Apportionment (RMA) Amendment
The changes to the RMA include:
1. An addition of an undeveloped special tax on the property
expected to be developed into for -sale efficiency units
2. A leveling of the special tax for the multifamily residential
units so that it is based on type, not square footage
3. A clarification to the treatment of any low-income units added
to the CFD after the date of the RMA
EQThe Resolution of Consideration for these changes was adopted on March 16, 2021
Voter/ Landowner Approval to amend the RMA
A public hearing must be held to approve the Resolution calling a
Special Mailed -Ballot Election. As there are not property owners yet,
Othe Mello -Ross Act allows for ballots to be sent to the landowners
ahead of the adoption of the Resolution.
O The qualified electors (landowners) within the CFD, must approve
the proposed amendments by a two-thirds vote.
O The landowners have completed the ballots and returned the results
to the City Clerk.
MM.
Approval of Ordinance
n Ordinance No 1661 (2019) was approved on April
16, 2019 to authorize the levy of a special tax in
SLR CFD, based on the RMA.
n connection with the RMA amendment, a new
Ordinance will be introduced directing and
effecting the levy of the special tax based on the
amended RMA.
Step 1
Hold Public Hearing for
the Special Election
Step 2
Adopt Resolution of
Change and introduce
the Ordinance setting
the special tax.
G� i Y Off,
� � CITY OF SIR LUIS OBISPO
C�IIS OS',
Step 3
Approve bond issuance
Step 4
Adopt Ordinance setting
the special tax for the
district.
Recommendation
Advance the Rate and Method of Apportionment (RMA) amendment of City of San
Luis Obispo Community Facilities District No. 2019-1 (San Luis Ranch) by the
following actions:
• Adopt a Resolution Calling a Special Mailed -Ballot Election
• Adopt a Resolution of Change of the RMA
• Introduce an Ordinance to levy the Special Tax for the Fiscal Year 2021-2022
and following fiscal years