HomeMy WebLinkAbout11/14/2023 Item 6d, McDonald - Staff Agenda CorrespondenceCity of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: November 14, 2023
TO: Mayor and Council
FROM: Whitney McDonald, Assistant City Manager
VIA: Derek Johnson, City Manager
SUBJECT: ITEM 6D - ADOPT AN AMENDED AND RESTATED RESOLUTION TO
CONFIRM THE CITY'S PARTICIPATION IN THE STATEWIDE
COMMUNITY INFRASTRUCTURE PROGRAM
Staff received the following question, regarding the resolution to confirm the City’s
participation in the Statewide Community Infrastructure Program. The question is below
with staff’s response shown in italics:
1. Question: I understand why the resolution needs to be restated, but I am not
sure what the “amendment” entails. What is changing about the agreement?
Response: There are two primary reasons this item is back before the City Council:
1) Addition of Community Facility Districts (CFDs) to allow financing of fees
and facilities in addition to the current Assessment District program; by
adding CFDs, developers can finance a broader range of City fees, such as
police, fire, library, general city fees, and housing in-lieu fees. This modification
will also allow the developer more flexibility in adjusting tax rates by specific
product type, assist in forming separate improvement areas when projects
need to be phased, and provide for more facilities to be financed similar in type
to the fees.
2) The resolution needs to go through a public hearing in order to validate
the City’s participation in SCIP. While the City joined the Statewide
Community Infrastructure Program (SCIP) in 2018, the City’s participation in
SCIP is required to occur following a public hearing and it has been determined
that Resolution 10959, the City’s current SCIP resolution approved in 2018,
was approved on consent.
To provide additional clarity, the proposed Amended and Restated Resolution
authorizes California Statewide Communities Development Authority (CSCDA) to:
• Accept applications from owners of property within the City’s planning
jurisdiction to apply for tax-exempt financing of public capital improvements and
development impact fees through SCIP.
o Not new from 2018
City's Participation in the Statewide Community Infrastructure Program Page 2
• Form assessment districts and community facilities districts within the City’s
boundaries, conduct assessment and special tax proceedings and levy
assessments and special taxes against the property of participating owners.
o Assessment Districts were included in the original resolution adopted in
2018, but since then, SCIP was expanded to include Community Facilities
Districts (CFDs) as well as Assessment Districts. Including CFDs as a
financing option is new to the Amended and Restated Resolution.
• Approves the form of an acquisition agreement to be entered into between the
City and the participating property owner/developer, if applicable, to provide the
terms and conditions under which financing for public capital improvements will
be provided and to establish the procedure for disbursement of bond proceeds
to pay for completed facilities.
o A form of an acquisition agreement was included in the 2018 Resolution
and that agreement form has been updated with this proposed action.
The revised form of acquisition agreement includes changes to allow use of
CFDs in addition to assessment districts, as well as modifications
recommended by the City’s outside counsel consistent with best practice.