HomeMy WebLinkAbout10-24-2017 Item 08 - Public Hearing - Formation for the Avila Ranch Community Facilities District
Meeting Date: 10/24/2017
FROM: Greg Hermann, Acting Assistant City Manager
Prepared By: Lee Johnson, Economic Development Manager
SUBJECT: RESOLUTION OF FORMATION FOR THE AVILA RANCH COMMUNITY
FACILITIES DISTRICT
RECOMMENDATION
Advance the formation of the Avila Ranch Communit y Facilities District (CFD) by adopting the
attached Resolution (Attachment A), taking the following actions:
1. Approve the Avila Ranch CFD Resolution of Formation;
2. Set the date for the required (landowner) election for October 26, 2017;
REPORT-IN-BRIEF
Adoption of the Avila Ranch CFD Resolution of Formation furthers the CFD formation process
that began on September 19, 2017 with the adoption of the Resolution of Intention. The
Resolution of Formation is the next step in the process and leads to the election required by
statute, in this instance the approval of the CFD formation by the landowners within the
proposed CFD which is coterminous with the Avila Ranch Development Plan area. Following
this action and the subsequent election, the City Council will hold a Public Hearing and adopt a
Special Tax Ordinance as is specified in the Avila Ranch Rate and Method of Apportionment.
DISCUSSION
Background
The City Council adopted the Avila Ranch Community Facilities District (CFD) Notice of
Intention at their September 19, 2017 meeting. This action followed preparation of the proposed
CFD as part of the Avila Ranch entitlements that include the Final Environmental Impact Report,
the Development Plan, the Subdivision Map, and the Development Agreement. Prior to
preparation of the CFD, the City Council, as part of the 2017-2019 Financial Plan, included new
financial policies that establish a framework for land-secured special tax financing.
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. The levy of any special
tax and any related bond issuance is subject to voter approval, if the area is inhabited approval by
two-thirds of the voters in the area is required. If fewer than 12 voters are located in the area,
approval by the landowners is required.
The owners and developers of the Avila Ranch property have requested and the City has agreed
to consider formation of this CFD, subject to Council action on the Avila Ranch entitlement
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documents. The Avila Ranch CFD, as proposed, will be used to fund certain City services that
benefit the new development, maintenance of local area public facilities, and reimbursements to
the Developer for funding advances or construction of key infrastructure items (over and above
the Project’s demonstrated “fair share” of such infrastructure costs).
One of the pillar policies1 of the City’s General Plan is that development should pay its fair share
of the costs needed to support the development, unless the City chooses to pay certain costs to
obtain community wide benefits. City staff worked with the applicant to prepare a detailed fiscal
impact analysis of the proposed project. In summary, the analysis shows that the project at full
build out will generate about $850,600 per year in general fund revenues and $1.3 million per
year in municipal service costs. The annual cost revenue deficit is $494,887. This deficit is
attributed to the capacity and property tax sharing agreement adopted at the time of the
territory’s annexation in 2008 that provided no property tax to the City.
CFD special taxes are commonly used to fund infrastructure and can be used as a source of
reimbursement for developer funding in excess of any “fair share” cost allocation. As part of the
Development Agreement the City has agreed to reimburse the Developer for up to $2.1 million
for such funding advances and/or oversizing of regional infrastructure.
Technical Specification of CFD
As part of its approval of the Avila Ranch CFD Resolution of Intention, the City Council
specified and approved the following technical aspects as documented in the Rate and Method of
Apportionment (RMA):
Purpose of the Special Tax. The RMA specifies the special tax to be levied as part of the
CFD. As mentioned above, for Avila Ranch, the special tax will fund local area
maintenance costs; provide for fiscal mitigation (City and County) and serve as a source
of reimbursement funding for infrastructure funding advances provided by the Developer.
Administrative costs are also included. Detailed analysis of public service costs,
including the need for fiscal mitigation and local area facilities maintenance has been
conducted as part of ongoing staff work and negotiations with the Avila Ranch
Developer.
Funding Capacity. The funding capacity of a CFD is based upon the type and amount of
development in the boundary of the CFD upon which the special tax is levied and the
amount of the tax per parcel. Special taxes levied as part of a CFD must be clearly
specified by a “rate and method of apportionment” which defines the amount of the tax
levied on each parcel and how the amount may be increased (indexed) over time to
account for any inflationary cost increases. Generally, and as reflected in the City’s
adopted policy, CFD special taxes are limited to a fraction of the 1 percent property tax
allowed under Article 13 A of the State Constitution. The funding capacity of the Avila
Ranch Project, taking account of the market value of development being created, the
existing general and special taxes, and the City’s established by policy special tax “cap”
1 1.13.9. Costs of Growth: The City shall require the costs of public facilities and services needed for new development be bor ne 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 f acilities which are
required to serve the project and which are reasonably related to the new growth attributable to the development.
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of 1.8 percent is estimated to be approximately $2.9 million annually at full buildout of
the project. Given market conditions and maximum equivalent HOA rates in the
community of $200 per month, and market considerations, and the significant amount of
smaller and multifamily units, the aggregate tax burden on residential units may likely
limit funding capacity to be below this maximum, resulting in a funding capacity at $1.7
million per year at full buildout of the project. The City Council determined that the
Special Tax schedule (as shown in Resolution of Formation Exhibit A, Attachment B)
was appropriate. The amount of funding from each special tax component (tax revenue at
“buildout” of the Project) include:
a. Citywide Services $414,000
b. Local Area Maintenance (City) $1.1 million
c. County Services $66,000
d. Capital Reimbursement (through 2035/36) $176,000
e. CFD Administration (City) $97,500
f. CFD Administration (Contract) $33,500
Municipal Service and Capital Reimbursement Components of the Special Tax. Because
there are different reasons for the two primary components of the special tax , there are
different instructions in the RMA related to each. The first component combines fiscal
mitigation of Citywide services and local area maintenance services and will be needed
indefinitely, subject to an annual index-based cost increase. This component of the
special tax can be adjusted downward if a new property tax sharing agreement with the
County is achieved that provides a greater share of property tax to the City. The second
component of the special tax is for reimbursement of capital outlay by the Developer in
excess of fair share costs. The tax will only be levied through 2035-2036 and/or once
reimbursement obligations are met, and is limited to a two percent annual cost increase.
The City Council determined both components are necessary and that a single CFD can
properl y encompass each of these components.
Special Tax Rate Structure. Special property taxes are "parcel" taxes (a given rate per
parcel). Varying taxes by use or intensity requires a logical structure, often linked to
service demand (and may not be ad valorem). Current special tax calculations determined
an "average" special tax for all units in Avila Ranch of $2,400 per year. There are 4
residential prototypes: R-1 (7 DU/ac); R-2 (12 DU/ac; R-3 townhomes (20 DU/ac); and
R-4, stacked flats (24 DU/ac). A "flat tax" rate could be set for all residential uses based
on the special tax revenue calculations; alternatively, a rate sensitive to unit type (zoning
designation or single family/multifamily) and size can be established, based on a variable
that is linked to service demand. The City Council determined that a rate sensitive to
residential unit type and size was most appropriate.
Special Tax on Vacant Land. Special taxes can be levied on land that is designated for
development but not yet developed. Such taxes are charged to generate cash flow to
cover interim service costs or debt service before the developing area subject to the
special tax is fully developed. The combined cost of services funded by the CFD may
exceed the available tax revenues during the "buildout" period when there will be a
growing number of tax producing parcels. A tax on vacant land (paid by the then-current
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owner of the vacant developable land) can be levied to cover such costs. Analysis shows
that significant maintenance cost will not emerge until the related facilities are in place
and service demands emerge. The City Council determined that a vacant land tax be
levied at the time the Final Subdivision Map is approved and respective subdivision
parcels are recorded.
Special Tax Prioritization. The RMA can specify funding priorities for special tax
revenue for both the service and reimbursement components of the special tax. Given the
proposed components, the City Council determined the priority for funding is as follows:
1) funding for reimbursement of Developer funding advances; 2) special funding for local
area maintenance; and 3) "fiscal mitigation" for the City.
Exemption for Commercial Uses. Special taxes can be charged on commercial uses to
pay their proportional share of service costs. There is a small amount (15,000 square feet)
of commercial space planned for the Avila Ranch neighborhood. Given its limited scale
the commercial uses the City Council determined such uses should be exempted from the
special tax unless a change of use is subsequently approved and to charge a vacant land
tax until parcel is developed.
Exemption for Affordable Housing Units. Property owned by non-profit entities or with
price restrictions in the deed are not categorically exempted from special taxes. The key
policy exemption to be considered is an exemption on affordable housing owned by non-
profit entities. There are 67 affordable units proposed, 9% of total units (35 for low
income at 80% of median income, and 32 for moderate at 120% of median income).
Taxing affordable housing units will increase operating costs and thus may decr ease
feasibility for the non-profit entities or the subsidies that they can offer lower income
households. Options include: 1) an exemption for the non-profit owned or deed restricted
units; or 2) establishing a discounted special tax reflecting benefits to the City of
providing affordable housing units. The City Council determined that a reduced special
tax on affordable units, 50% of the lowest tax rate on market rate residential units, be
levied.
Other Exemptions. Certain types of property ownership are categorically exempt from
special taxes (e.g., lands owned by government entities), others may be exempted for
policy reasons by the RMA. Little or no cost is expected from these parcels. Exemptions
include government owned property; property-owners’ association property (common
areas); assessor’s parcels consisting of public or utility easements; and property having
conservation-oriented deed restrictions. The City Council determined that these non-
developed parcels be exempted from the special tax.
Indexing for Cost Increases Over Time. Special taxes are typically “indexed,” increased
over time to reflect inflationary cost increases as permitted by the Statute. Without a
“cost inflator” special taxes will diminish in value proportional to the rate of in flation on
the costs of providing municipal services. There are various “cost indices” that track price
inflation including the CPI, the CCI and the ENR construction cost index. The
publication American County and City also publishes a municipal cost index that tracks
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regional increases in municipal service costs. The City Council determined that the City
apply a composite of these indices to change the component of special taxes used for City
services from year-to-year. The special tax component for infrastructure purposes is
limited by the Statute to two percent per year.
Property Tax Contingency. At the present time, the Avila Ranch area does not generate
any property taxes to the City due to the existing Property Tax Sharing Agreement with
the County; this is one of the reasons the CFD has been proposed. A portion of the
proposed Avila Ranch special tax is for "fiscal mitigation" linked to the existing property
tax agreement that yields no property tax to the City. In the event that a portion of the
property tax is provided to the City, the "fiscal mitigation" portion of the special tax
could be reduced. It is possible that at some future date the Property Tax Sharing
Agreement with the County will be amended providing new revenue to the City. The
Rate and Method of Apportionment could include a clause that provided for a reduction
in the overall special tax proportional any property tax revenue received by the City.
Alternatively, the Rate and Method of Apportionment need not contain such a provision.
The City Council determined that a provision to reduce the special taxes proportional to
any property tax received as a result of a new Property Tax Sharing Agreement with the
County.
Duration of the Special Tax. The Rate and Method must indicate the duration of the
special tax. Special taxes that provide a source of debt service on CFD municipal bonds
(or other capital expenditure) sunset when debt is retired. The City Council determined
that an “indefinite” duration for the services portion of the special tax, and that the
reimbursement component will be retired when reimbursement is completed (estimated to
be no later than 2035/36).
Special Tax Accounts and Allocation. The special tax requirement has been calculated
based on three separate cost components: 1) "fiscal mitigation" for the lack of property
tax from the area (both City and some County); 2) special funding for local area
maintenance and also eventual local facilities replacement; and 3) funding for
reimbursement of Developer funding advances (e.g., the capital component). The City
Council determined that individual trust accounts be established for the three funding
components be established along with terms that specify funds annually appropriated on a
“cost-applied” basis.
CONCURRENCES
The Community Development Director concurs that the proposed CFD is consistent with the
entitlements granted for the project. The Public Works Director concurs that the revenue
generated by the CFD will be sufficient to cover the costs and obligations associated with City
services to be provided, and that the mechanism exists to adjust those costs and revenues
accordingly. In addition, the property owners of Avila Ranch have executed waivers and are
otherwise agreeable to the creation of the CFD in order to help fund the services and
infrastructure needed to support the development project.
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FISCAL IMPACT
When the Land Use and Circulation Elements (LUCE) of the General Plan were updated in
2014, they were accompanied by a fiscal analysis that identified the overall fiscal impact that
buildout of the General Plan would have on the city’s ability to continue to provide the high level
of service expected by the community. This fiscal impact analysis of the City’s land use plan is
an essential aspect of land use planning in California, where property tax growth is statutorily
limited. As a result, communities have to be careful to balance land uses between commercial
activities that produce net revenues to support City operations, and residential uses that cost
more to support than they produce in direct revenues.
Normally, individual projects are not accompanied by project-specific fiscal analyses. In the case
of Avila Ranch, a detailed fiscal analysis has been prepared for the following reasons:
1. The size of the project warrants a project-specific look.
2. The phasing of the project could result in short term fiscal impacts that would limit the ability
of the City to maintain or deliver public facilities in the earlier phases of the project. This
may result in the need for a Community Facilities District to support project maintenance or
infrastructure costs.
3. Negotiations with the developer regarding the Development Agreement rely on a detailed
understanding of the specific fiscal effects of the project.
4. Discussions with the County regarding the tax exchange agreement are also informed by a
more detailed understanding of the tax revenue and costs that will be generated by the
project.
The fiscal impact analysis for the Avila Ranch project was prepared by Applied Development
Economics. This is the same firm that prepared the fiscal and economic analysis for the General
Plan update. In summary, the analysis shows that the project at full buildout will generate about
$850,600 per year in general fund revenues and $1.3 million per year in municipal service costs.
The annual cost revenue deficit is $494,887. The numbers are based on current cost and the
current tax sharing agreement with the County and can be positively impacted based on a
positive outcome of the ongoing negotiations with the County.
ENVIRONMENTAL REVIEW
In accordance with Sections 15162 & 15163 of the CEQA Guidelines, an Addendum to the
certified Final Environmental Impact Report (EIR) prepared for the Avila Ranch project has
been prepared to address the formation of a CFD, a funding mechanism intended to implement
development under the Avila Ranch project (Attachment B). The Addendum did not find that the
CFD would introduce new or modified environmental impacts that were not already previously
disclosed and analyzed through the certified Final EIR. All mitigation measures prescribed for
the approved development project would still apply with the implementation of the CFD, and no
new mitigation measures would be required.
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NEXT STEPS
Following action on the Avila Ranch CFD Resolution of Formation and conducting the election
the City Council will need to formally certify the election results and adopt an Ordinance that
establishes the Avila Ranch CFD Special Tax. These actions are anticipated to occur at the
November 7, 2017 City Council meeting.
Attachments:
a - Avila Ranch CFD Resolution of Formation
b - Avila Ranch Exhibits A-C to Resolution Of Formation
c - Avila Ranch Financing Plan & Community Facilities District Hearing Report
d - Example Avila Ranch CFD Ballot
e - Addendum to the Avila Ranch Final Environmental Impact Report
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RESOLUTION NO. _____ (2017 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ESTABLISHING AVILA RANCH
COMMUNITY FACILITIES DISTRICT NO. 2017-1 PURSUANT TO THE
MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982 AND, IN ITS
CAPACITY AS LEGISLATIVE BODY OF SUCH DISTRICT,
SUBMITTING THE LEVY OF A SPECIAL TAX AND THE
ESTABLISHMENT OF AN APPROPRIATIONS LIMIT TO THE
ELECTORS OF THE DISTRICT AND ADOPTING AN ADDENDUM TO
THE FINAL ENVIRONMENTAL IMPACT REPORT FOR THE AVILA
RANCH DEVELOPMENT
WHEREAS, the development of the territory commonly known as Avila Ranch will
necessitate the provision of additional City facilities and services; and
WHEREAS, the Mello-Roos Community Facilities Act of 1982 (Section 53311 et. seq.
of the California Government Code) (the “Act”) authorizes the City to establish a community
facilities district to finance such facilities and services; and
WHEREAS, by its Resolution No. 10833 (2017 Series), the City Council proposed to
establish Avila Ranch Community Facilities District (the “District”) under the terms of the Act,
declared its intention to levy a special tax in connection with the District, and set the time and
place for a public hearing on the establishment of the District; and
WHEREAS, notice of the public hearing was given as required by law; and
WHEREAS, on September 19, 2017, at 4:00 P.M. or as soon thereafter as practicable, in
the City Council Chambers at 990 Palm Street, San Luis Obispo, CA, the City Council held a full
and fair public hearing on the establishment of the District (the “Hearing”); and
WHEREAS, at the Hearing, the testimony of all 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 public facilities or services was heard; and
WHEREAS, the City Council has reviewed the report entitled Avila Ranch Financing
Plan and Community Facilities District Hearing Report filed by the City Manager with the City
Council prior to the Hearing and on file in the Office of the City Clerk, which report is hereby
finally approved; and
WHEREAS, the Registrar of Voters of the County of San Luis Obispo has informed the
City that there are no persons registered to vote within the boundaries of the District; and
WHEREAS, the City Council has received unanimous consent from the landowners in
the District to waive all time limits and requirements with respect to the conduct of an election
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with regard to the levy of a special tax in connection with the District (including any
requirements for a summary or arguments in connection therewith); and
WHEREAS, the City Council, having considered and overruled all protests, determines
to proceed with the establishment of the District.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, ON ITS OWN BEHALF AND IN ITS CAPACITY AS LEGISLATIVE BODY
FOR THE TERRTIORY OF AVILIA RANCH DOES HEREBY RESOLVE, DECLARE,
DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. The recitals stated above are true and correct and are incorporated herein
by this reference.
SECTION 2. The City Council finds and determines that all proceedings in connection
with the District have been valid and in conformity with the requirements of the Act. This
finding is final and conclusive, pursuant to Section 53325.1 of the Act.
SECTION 3. The City Council hereby establishes the District as a community facilities
district, designated the “Avila Ranch Community Facilities District No. 2017-1” under the terms
of the Act.
SECTION 4. The boundaries of the territory included in the District are shown
on the map entitled Exhibit C. CFD Boundaries was recorded with the County Recorder of the of
County of San Luis Obispo on October 3, 2017 as Instrument No. 201704456. This map was
recorded pursuant to Sections 53328.5 of the Government Code and 3111 of the Streets and
Highways Code. A copy of the map is on file in the Office of the City Clerk and available for
public inspection.
SECTION 5. The facilities and services to be financed by the District are as described in
Exhibit “A” to this Resolution, attached hereto and incorporated herein by reference (the
“Facilities and Services”). The City Council determines that the facilities to be financed by the
District are necessary to meet increased demands placed upon local agencies are a result of
development occurring in the District.
SECTION 6. Except where funds are otherwise available, and subject to
approval by the electors of the District, a special tax sufficient to pay for all the Facilities and
Services, along with the incidental expenses described in Attachment “A” to this Resolution, will
be annually levied within the District (the “Special Tax”). The Special Tax will be secured by
recordation of a continuing lien against all nonexempt real property in the District. The rate and
method of apportionment of the Special Tax are described in Attachment “B” to this resolution,
attached hereto and incorporated herein by reference (the “Rate and Method of Apportionment”).
Except as otherwise set forth in the Rate and Method of Apportionment, the Special tax will be
collected in the same manner as ordinary ad valorem property taxes are collected and shall be
subject to the same penalties and the same procedure, sale, and lien priority in case of
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delinquency as is provided for ad-valorem taxes. The Rate and Method of Apportionment
contains sufficient detail to allow each landowner or resident within the District to estimate the
maximum Special Tax that he or she will have to pay.
SECTION 7. The Special Tax will be levied annually, for an indefinite period with no
expiration or sunset. Notwithstanding the foregoing, no Special Tax to pay for public facilities
will be levied against any parcel after Fiscal Year 2035-2036. For the purposes of this Section,
“public facilities” does not include services described in Section 53313 of the Act.
SECTION 8. Under no circumstances may the Special tax on a residential parcel in the
District be increased in any fiscal year as a consequence of delinquency or default in payment of
the Special Tax levied on another parcel or parcels by more than ten percent (10%) above the
amount that would have been levied in that fiscal year had there never been any such
delinquency or default.
SECTION 9. Upon recordation of a notice of special tax lien pursuant to Section 3114.5
of the California Streets and Highways Code, a continuing lien to secure each levy of the special
tax shall attach to all non-exempt real property in the District, and this lien shall continue in force
and effect until the special tax obligation is prepaid and permanently satisfied and the lien
cancelled in accordance with law or until collection of the tax by the City Council ceases.
SECTION 10. The Special Tax, if levied, will be subject to the following accountability
measures:
(i) Proceeds of the Special Tax will be deposited in a special account ( “Special
Account”) and used only for the purpose of financing the Facilities and Services
and the Incidental Expenses; and
(ii) An annual report will be filed by the Finance Officer of the City at least once a
year containing a description of the amount of funds and the status of any
project included in the Facilities and Services.
The provisions of this Section are a limitation on the expenditure of Special Tax proceeds. The
City does not, solely by virtue of this Section or this Resolution, or solely by virtue of the levy or
collection of the Special Tax, assume any obligation to provide any particular service or to
purchase, construct, expand, improve, or rehabilitate any property of any particular kind.
SECTION 11. The City’s Department of Finance, which is located at 990 Palm Street,
San Luis Obispo, CA and whose telephone number is (805) 781-7124 (the “Finance
Department”), will be responsible for preparing the annual roll of special tax obligations with
respect to the District and for estimating future tax levies pursuant to Section 53340.2 of the Act.
SECTION 12. The City Council finds that the Special Tax has not been precluded by
majority protest pursuant to Section 53324 of the Act.
SECTION 13. The City Council proposes to establish an appropriations limit,
pursuant to Article XIIIB, Section 8(h) of the California Constitution, for the District, at an
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amount equal to $3,000,000 (the “Appropriations Limit”). Such limit shall be adjusted for
changes in the cost of living, or changes in population, pursuant to Section 53325.7 of the Act.
SECTION 14. The City Council finds that on at least one of the ninety days prior
to the close of the Hearing, there were less than twelve persons registered to vote within the
territory of the District. Consequently, pursuant to Section 53326(b) of the Act, the electors of
the District, for the purposes of approving the Special Tax, shall be the landowners of the
District. The City Council determines that the identities of the sole landowner of the District
(and the number of acres, or portions thereof, of land in the District that is owned by such
landowner) is as set forth in Exhibit “C”, attached hereto and incorporated herein by reference.
SECTION 15. The City Council hereby calls a special election of the qualified
electors of the District, to be held on [October 26th] at [11 am] (the “Special Election”). The
Special Election will be conducted by the City Clerk, as elections official. The vote will be by
the landowners of the District, and each landowner of the District who is the owner of record at
the close of the Hearing, or is the authorized representative thereof, shall have one vote for each
acre or portion of an acre of land that he or she owns within the District. The number of votes to
be voted by a particular landowner will be specified on the ballot provided to that landowner.
The Special Election will be conducted by mail ballot, with ballots distributed to each elector by
personal service of the elections official, and the Special Election may be closed prior to the hour
specified in this resolution, if all qualified voters have voted. All time limits specified in Section
53326 of the Act and all requirements of law pertaining to the conduct of the Special Election are
hereby waived, pursuant to Section 53326(a) of the Act, as are any requirements of Section
53327 of the Act with respect to analysis or arguments.
SECTION 16. The levy of the Special Tax, and the establishment of the Appropriations
Limit, area hereby submitted to the qualified electors of the District at the Special Election. The
question to be put to the qualified electors shall be as set forth below:
Shall a special tax, as specified in the Rate and Method of Apportionment set forth in Resolution
No. 10833 (2017 Series) payable by parcels within the boundaries of Avila Ranch Community
Facilities District No. 2017-1, be levied annually, commencing in fiscal year 2018-19, for the
purpose of financing services, facilities and incidental expenses as set forth in Resolution No.
10833 (2017 Series) and subject to an appropriations limit of $3,000,000, with annual
adjustment for inflation?
SECTION 17. Environmental Determination. The City Council hereby adopts an
Addendum to the certified Final Environmental Impact Report (EIR) prepared for the Avila
Ranch project based on the following findings: That formation of the CFD will not require a
subsequent or supplemental EIR in accordance with Sections 15162 and 15163 of the CEQA
Guidelines; all mitigation measures prescribed for the approved development project would still
apply with the implementation of the CFD; no new mitigation measures would be required; and
the Addendum and the FEIR reflect the City’s independent judgment and analysis.
SECTION 18. If any section, subsection, sentence, clause, phrase or portion of
this Resolution is for any reason held to be invalid or unconstitutional by any court of competent
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jurisdiction, such decision shall not affect the validity of the remainder of the Resolution. The
City Council hereby declares that it would have adopted this Resolution, and each section,
subsection, sentence, clause, phrase or portion hereof, irrespective of that fact that any one or
more sections, subsections, sentences, clauses, phrases or portions be declared invalid or
unconstitutional.
SECTION 19. The City Clerk is authorized to take all actions necessary for the
conduct of the Election.
SECTION 20. The City Clerk shall certify to the adoption of this Resolution.
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2016.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Carrie Gallagher
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, this ______ day of ______________, _________.
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____________________________________
Carrie Gallagher
City Clerk
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A-1
EXHIBIT A
City of San Luis Obispo
Avila Ranch Community Facilities District No. 2107-1 (Services)
San Luis Obispo County, California
AMENDED RATE, METHOD OF APPORTIONMENT, AND
MANNER OF COLLECTION OF SPECIAL TAX
1. Basis of Special Tax Levy
A Special Tax authorized under the Mello-Roos Community Facilities Act of 1982 (Act) applicable
to the land in the Avila Ranch Community Facilities District No.2017-1 (Services) (CFD) of the
City of San Luis Obispo (City) shall be levied and collected according to the tax liability
determined by the City through the application of the appropriate amount or rate, as described
below.
2. Definitions
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, Sections 53311 and
following of the California Government Code.
“Administrative Expenses” means the actual or estimated costs incurred by the City to form
the CFD and to determine, levy, and collect the Special Taxes, including compensation of City
employees for administrative work performed in relation to the CFD, the fees of consultants and
legal counsel, the costs of collecting installments of the Special Taxes on the general tax rolls,
preparation of required reports, and any other costs required to administer the CFD as
determined by the City.
“Administrator” means the City Manager of the City, or her or his designee.
“Affordable Unit” means a Unit built on a Parcel of Single-Family Parcel for which an Affordable
Housing Agreement has been entered into for the property designating the Unit as affordable.
The City Manager, or its designee, shall determine which Units are designated as Affordable Units
and maintain an Affordable Unit Listing, which shall contain all designated buildable parcels by
tract and lot number, and in the case of Large Lots Parcels remaining before May 1 of the
preceding Fiscal Year, the number of designated Affordable Units for each such Large Lot Parcel;
all entries shall indicate the effective date of designation. The Affordable Unit Listing also shall
be updated to reflect those Units no longer qualifying as Affordable Units, also known as Market-
Rate Units. The Affordable Unit Listing, which shall contain all qualifying Affordable Units as of
April 30, shall be made available to the Administrator by July 1 of each year for purposes of
determining the Maximum Special Tax for Parcels pursuant to Section 4.
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“Annual Infrastructure Costs” means for each Fiscal Year, the total cost of (1) Authorized
Facilities and (2) any amounts needed to cure actual or estimated delinquencies in Special Taxes
for the current or previous Fiscal Year.
“Annual Services Costs” means for each Fiscal Year, the total cost of (1) Authorized Services,
(2) Administrative Expenses, and (3) any amounts needed to cure actual or estimated
delinquencies in Special Taxes for the current or previous Fiscal Year.
“Assessor’s Parcel Map” means an official map of the County Assessor designating parcels by
Assessor’s Parcel Number.
“Assessor's Parcel Number” means the Parcel and Parcel number as recorded by the County
Assessor on the equalized tax roll.
“Authorized Facilities” means those facilities, as listed in the resolution forming the CFD.
“Authorized Services” mean those services, as listed in the resolution forming the CFD.
“Base Year” means the Fiscal Year beginning July 1, 2018 and ending June 30, 2019.
“Building Permit” means a permit issued by the City for the construction of a Residential Use
structure.
“Building Square Foot(age)” has the same meaning as that defined for the School Mitigation
Fee by California Government Code Section 65995 for “Assessable Space,” which is “all of the
square footage within the perimeter of a residential structure, not including any carport,
walkway, garage, overhang, patio, enclosed patio, detached accessory structure, or similar area”
as determined upon issuance of the initial Building Permit.
“CFD” means the Avila Ranch Community Facilities District No. 2017-1 (Services) of the City of
San Luis Obispo, San Luis Obispo County, California.
“City” means the City of San Luis Obispo in San Luis Obispo County, California.
“Council” means the City Council of the City of San Luis Obispo acting for the CFD under the
Act.
“County” means the County of San Luis Obispo, California.
“County Assessor’s Parcel” means a lot or Parcel with an assigned Assessor’s Parcel Number
in the maps used by the County Assessor in the preparation of the tax roll.
“Developed Parcel” means any Taxable Parcel with a Building Permit issued for Residential
Uses.
“Development Plan” means a condominium plan, apartment plan, site plan, or other
development plan that identifies such information as the type of structure, acreage, square
footage, or number of Units that are approved to be developed on Single Family Parcels and
Multifamily Residential Use Parcels.
“Final Map Parcel” means a Parcel designated for development as a single-family residence
which is part of a Final Subdivision Map.
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“Final Subdivision Map” means a recorded map designating the final Parcel Subdivision for
individual single family residential Parcels.
“Fiscal Year” means the period starting July 1 and ending the following June 30.
“Infrastructure Special Tax” means the Special Tax identified in Attachment 1 for each Land
Use Category identified to fund the costs of Authorized Facilities. The Infrastructure Special Tax
is increased by the Infrastructure Special Tax Escalation Factor in each Fiscal Year following the
Base Year.
“Infrastructure Special Tax Escalation Factor” means a factor of 2 percent in any Fiscal Year
following the Base Year by which the Special Tax for the previous Fiscal Year will be increased for
the current Fiscal Year.
“Land Use Category” means the categories of taxable land uses shown in Attachment 1.
“Large Lot Parcel” means a Parcel created by a Large Lot Subdivision Map.
“Large Lot Subdivision Map” means a recorded subdivision map creating Parcels by land use.
However, the Large Lot Subdivision Map does not delineate Single-Family Parcels. A Final
Subdivision Map will create individual Single Family Parcels.
“Market-Rate Unit” means a Unit that is not an Affordable Unit.
“Maximum Annual Special Tax” means the greatest amount of Special Tax that can be levied
against a Parcel in a given Fiscal Year. The Maximum Annual Special Tax is the sum of the Fiscal
Services Special Tax and Infrastructure Special Tax assigned to each Taxable Parcel.
“Maximum Annual Special Tax Revenue” means the greatest amount of revenue that can be
collected in total from a group of Parcels (such as Developed Parcels) by levying the Special Tax.
“Multifamily” or “Multifamily Residential Use” means any Parcel or Development Project
designated or developed for more than one residential dwelling unit per parcel. Such uses may
consist of apartments, condominiums, townhomes, time-share units, row houses, duplexes, or
triplexes.
“Municipal Costs Index” means the index published by American City & County.
“Other Land Use” means a Parcel with land uses other than Residential Uses. Such Parcels are
Tax-Exempt Parcels
“Parcel” means any County Assessor’s Parcel in the CFD based on the equalized tax rolls of the
County.
“Public Parcel” means any Parcel that is or is intended to be publicly owned, as designated in
any final map that is normally exempt from the levy of general ad valorem property taxes under
California law, including public streets; schools; parks; and public drainageways, landscaping,
wetlands, greenbelts, and open space.
“Remainder Parcel” means a Parcel that is created as the result of the recordation of a Large
Lot Parcel Map or Final Small Lot Subdivision Map, which results in a Parcel within the boundaries
of a Large Lot Parcel, that has not been mapped for final development approval. Such a
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Remainder Parcel may contain taxable and tax-exempt uses, such as Residential Uses, and Public
Parcels, such as school or park sites. Once designated as a Remainder Parcel, such Parcel will be
considered a Large Lot Parcel for the purposes of future Subdivisions and for the provisions of
Sections 4 through 6.
“Residential Use” means a Parcel designated for residential use, such as single family
residential units, residential condominiums, townhouses, Multifamily Residential Uses, or
apartments.
“RMA” means the Rate and Method of Apportionment of the Special Tax.
“Services Special Tax” means the Special Tax identified in Attachment 1 for each Land Use
Category identified to fund the costs of Authorized Services. The Services Special Tax is
increased by the Services Special Tax Escalation Factor in each Fiscal Year following the Base
Year.
“Services Special Tax Escalation Factor” an annual percentage increase in the Fiscal
Mitigation Special Tax and Local Area Special Tax based upon the Consumer Price Index (CPI)
(prior calendar year annual average, San Francisco, All Urban Consumers (CPI-U) Index), the
CPI (prior calendar year annual average, Pacific West Cities, All Urban Wage Earners and Clerical
Workers), or the Municipal Cost Index annual average, whichever is greater, but not exceeding
four (4) percent.
“Single Family Parcel” means, in any Fiscal Year, all Parcels in the CFD for which a building
permit was issued or may be issued for construction of a Unit that is a single family residential,
residential condominium, or townhouse Unit.
“Special Tax(es)” mean(s) any tax levy under the Act in the CFD.
“Subdivision” or “Subdivided” means a division of a Parcel into two or more Parcels through
the Subdivision Map Act process. A Subdivision may also include the merging of two or more
Parcels to create new Parcels.
“Tax Collection Schedule” means the document prepared by the Administrator for the County
Auditor-Controller to use in levying and collecting the Special Taxes each Fiscal Year.
“Taxable Parcel” means any Parcel that is not a Tax-Exempt Parcel.
“Tax-Exempt Parcel” means a Parcel not subject to the annual Special Tax. Tax-Exempt
Parcels include Public Parcels, Undeveloped Parcels, and Other Use Parcels.
Certain privately-owned Parcels also may be exempt from the levy of annual Special Taxes
including common areas owned by homeowner’s associations or property owner associations,
wetlands, detention basins, water quality ponds, and open space, as determined by the
Administrator.
“Undeveloped Parcel” means a Parcel that is a Large Lot Parcel or Remainder Parcel.
“Unit” means (a) for Single Family Parcel dwelling unit; and (b) for Multifamily Residential Use
Parcel, such as an individual residential unit in an apartment building.
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3. Duration of the Special Tax
Parcels in the CFD will remain subject to the Services Special Tax in perpetuity.
Parcels in the CFD will be subject to the Infrastructure Special Tax through FY 2035-36.
If the Special Tax ceases to be levied, the City will direct the County Recorder to record a Notice
of Cessation of Special Tax. Such notice will state that the obligation to pay the Special Tax has
ceased and that the lien imposed by the Notice of Special Tax Lien is extinguished. The Notice of
Cessation of Special Tax, in addition, will identify the book and page of the Book of Maps of
Assessment and Community Facilities Districts where the map of the boundaries of the CFD is
recorded.
4. Administrative Tasks
Administrative tasks required of the Administrator are discussed below:
A. Annual Special Tax Escalation. The Administrator shall increase the Fiscal Mitigation Special
Tax and Local Area Special Tax by the Services Special Tax Escalation Factor in each Fiscal
Year following the Base Year. The Administrator shall increase the Infrastructure Special Tax
Infrastructure Special Tax Escalation Factor in each Fiscal Year following the Base Year.
B. Assignment of the Maximum Annual Special Tax to Taxable Parcels. As Taxable Parcels are
Subdivided or combined, the Administrator will assign the Maximum Annual Special Tax to
each new Taxable Parcel based on the records of the City:
1. Assignment of the Maximum Annual Special Tax to Developed Parcels. The Services
Special Tax and Infrastructure Special Tax are assigned to Developed Parcels using the
following procedures.
a. Identify the Building Square Footage for the Residential Use for the Taxable
Parcel, as identified in the Building Permit.
b. Identify the Land Use Category for the Taxable Parcel based upon the Residential
Use type and Building Square Footage in Attachment 1.
c. Assign the Services Special Tax for the Taxable Parcel based upon the Land Use
Category using the criteria identified in Sections 4.B.1.a and 4.B.1.b, and as
increased by the Services Special Tax Escalation Factor and Infrastructure Special
Tax Escalation Factor.
d. Assign the Infrastructure Special Tax for the Taxable Parcel based upon the Land
Use Category using the criteria identified in Sections 4.B.1.a and 4.B.1.b, and
as increased by the Infrastructure Special Tax Escalation Factor.
e. Sum the Services Special Tax and Infrastructure Special Tax to determine the
Maximum Annual Special Tax for the Taxable Parcel.
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2. Assignment of the Maximum Annual Special Tax to Final Map Parcels. The Services
Special Tax and Infrastructure Special Tax are assigned to Final Map Parcels using the
following procedures.
a. Assign the Services Special Tax for the Final Map Parcel, as shown in Attachment
1, and as increased by the Services Special Tax Escalation Factor.
b. Assign the Infrastructure Special Tax for the Final Map Parcel, as shown in
Attachment 1, and as increased by the Infrastructure Special Tax Escalation
Factor.
c. Sum the Services Special Tax and Infrastructure Special Tax to determine the
Maximum Annual Special Tax for the Taxable Parcel.
3. Assignment of the Maximum Annual Special Tax to Undeveloped Parcels. Undeveloped
Parcels are not subject to the Maximum Annual Special Tax.
C. Affordable Units that Become Market Rate Units. If, in any Fiscal Year, a Unit that
previously had been designated as an Affordable Unit no longer qualifies as such, the City
shall update the Affordable Unit Listing by denoting the change in status of the Unit,
together with the effective date thereof. The Maximum Annual Special Tax on the Unit
that no longer qualifies as an Affordable Unit shall be increased to double the amount
that would have applied in that Fiscal Year if the Unit had remained as an Affordable Unit.
In subsequent Fiscal Years, this increased Maximum Annual Special Tax shall continue to
escalate by the Tax Escalation Factor.
D. Conversion of a Tax-Exempt Parcel to a Taxable Parcel. If a Tax-Exempt Parcel is not
needed for public use and is converted to a taxable use or transferred to a private owner,
it shall become subject to the Special Tax. The Maximum Annual Special Tax for such a
Parcel will be assigned according to the provisions of Section 4.A and 4.B.
E. Taxable Parcel Acquired by a Public Agency. A Taxable Parcel acquired by a public
agency shall be reclassified as a Tax-Exempt Parcels and is no longer subject to the
Special Tax levy.
F. Maintenance of Parcel Records. The Administrator will maintain a development status for
each Parcel within the CFD as Parcels are Subdivided and developed. The record will
contain the Assessor’s Parcel Number, Land Use Category, number of Units per Taxable
Parcel, the Fiscal Mitigation Special Tax, Local Area Special Tax, Infrastructure Special
Tax, and Maximum Annual Special Tax for each Taxable Parcel.
5. Assignment of the Maximum Annual Special Tax
A. Classification of Parcels. By June 30 of each Fiscal Year, using the Definitions in Section 2,
the Administrator shall cause:
1. Each Parcel to be classified as a Taxable Parcel or Tax-Exempt Parcel.
2. Each Parcel to be classified as a Developed Parcel, Final Map Parcel, or an Undeveloped
Parcel.
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B. Assignment of the Maximum Annual Special Tax to Taxable Parcels. The Maximum Annual
Special Tax will be assigned to each Taxable Parcel each Fiscal Year using the procedures
(not all steps may be applicable for each such Parcel) in Section 4.
6. Calculating Annual Special Taxes
The Administrator will compute the Annual Costs and determine the annual Special Tax levy for
each Taxable Parcel based on the assignment of the Special Tax in Section 5. The Administrator
will then determine the tax levy for each Taxable Parcel using the following process:
A. Compute the Annual Services Costs using the definition of Annual Services Costs in Section
2.
B. Calculate the Services Special Tax levy for each Taxable Parcel by the following steps:
Step 1: Compute 100 percent of the Services Special Tax revenue for all Developed Parcels.
Step 2: Compare the Annual Services Costs with the amount calculated in the previous
step.
Step 3: If the Annual Services Costs are lower than the amount calculated in Step 1,
decrease proportionately the Services Special Tax levy for each Developed Parcel
until the revenue from the Special Tax levy equals the Annual Services Costs.
Step 4: If the Annual Services Costs are greater than the amount calculated in Step 1,
increase proportionately the Services Special Tax levy for each Final Map Parcel
until the revenue from the Special Tax levy equals the Annual Services Costs, or
100 percent of the Services Special Tax for all Final Map Parcels, if needed to fund
Annual Services Costs.
C. Compute the Annual Infrastructure Costs using the definition of Annual Infrastructure Costs
in Section 2
D. Calculate the Infrastructure Special Tax levy for each Taxable Parcel by the following steps:
Step 1: Compute 100 percent of the Infrastructure Special Tax revenue for all Developed
Parcels.
Step 2: Compare the Annual Infrastructure Costs with the amount calculated in the previous
step.
Step 3: If the Annual Infrastructure Costs are lower than the amount calculated in Step 1,
decrease proportionately the Infrastructure Special Tax levy for each Developed
Parcel until the revenue from the Special Tax levy equals the Annual Infrastructure
Costs.
Step 4: If the Annual Infrastructure Costs are greater than the amount calculated in Step 1,
increase proportionately the Infrastructure Special Tax levy for each Final Map
Parcel until the revenue from the Special Tax levy equals the Annual Services Costs,
or 100 percent of the Services Special Tax for all Final Map Parcels, if needed to
fund Annual Infrastructure Costs.
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E. Sum the amount determined in Sections 6.B and 6.D above.
F. Levy on each Taxable Parcel the amount calculated in Section 6.E above.
G. Prepare the Tax Collection Schedule and, unless an alternative method of collection has been
selected pursuant to Section 9, send it to the County Auditor requesting that it be placed on
the general, secured property tax roll for the Fiscal Year. The Tax Collection Schedule will
not be sent later than the date required by the Auditor for such inclusion.
The Administrator will make every effort to correctly calculate the Special Tax for each
Parcel. It will be the burden of the taxpayer to correct any errors in the determination of the
Parcels subject to the tax and their Special Tax assignments.
7. Interpretation, Application and Appeal of Special
Tax Formula and Procedures
Any taxpayer who feels that the amount of the Special Tax assigned to a Parcel is in error may
file a notice with the Administrator appealing the levy of the Special Tax. The Administrator will
then promptly review the appeal, and if necessary, meet with the applicant. If the Administrator
verifies that the tax should be modified or changed, the Special Tax levy will be corrected and, if
applicable in any case, a refund will be granted.
Interpretations may be made by Resolution of the Council for purposes of clarifying any
vagueness or ambiguity as it relates to the Special Tax rate, the method of apportionment, the
classification of properties, or any definition applicable to the CFD.
Without Council approval, the Administrator may make minor, non-substantive administrative
and technical changes to the provisions of this Exhibit that do not materially affect the rate,
method of apportionment, and manner of collection of the Special Tax for purposes of the
administrative efficiency or convenience or to comply with new applicable federal, state or local
law.
8. Prepayment of the Special Tax Obligation
The Special Tax for a Taxable Parcel may not be prepaid. The Special Tax is collected to fund
Authorized Services in perpetuity, or until the Council determines that the Special Tax should no
longer be collected.
9. Manner of Collection
The Special Tax will be collected in the same manner and at the same time as ad valorem
property taxes, provided, however, that the Administrator or its designee may directly bill the
Special Tax and may collect the Special Tax at a different time, such as on a monthly or other
periodic basis, or in a different manner, if necessary, to meet the City’s financial obligations.
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DRAFTAttachment 1Avila Ranch CFD No. ___Maximum Annual Special Tax - Base Year of FY 2018-19No. ofServicesInfrastructureMaximum AnnualLand Use CategoryUnitsSpecial TaxSpecial TaxSpecial Tax[1][2] [3][4]Single Family Residential - 1,500 Sq. Ft.322 $2,749.80$300.00 $3,049.80Single Family Residential - <1,500 Sq. Ft.76 $1,832.86$200.00 $2,032.86Multifamily Residential - 1,500 Sq. Ft.38 $2,749.80$300.00 $3,049.80Multifamily Residential - < 1,500 Sq. Ft.252 $1,832.86$200.00 $2,032.86Affordable Multifamily Residential32$916.43$100.00 $1,016.43Undeveloped Parcels [5]Other Land Uses$0.00$0.00$0.00Public and Deed Restricted Land$0.00$0.00$0.00"att1"[1] This Special Tax rate will be increased by the Services Special Tax Escalator in each Fiscal Year following the Base Year of FY 2018-19.[2] This Special Tax rate will be increased by the Infrastructure Special Tax Escalator in each Fiscal Year following the Base Year of FY 2018-19.[3] This Special Tax may be collected in each Fiscal Year through FY 2027-28. This Special Tax will no longer be collectedfollowing FY 2027-28.[4] Beginning with FY 2028-29, the Maximum Annual Special Tax will be equal to the Services Special Tax as the Infrastructure Special Tax will no longer be collected beyond FY 2027-28..[5] Undeveloped Parcels are Final Map Parcels without a Building Permit.Prepared by EPS 8/18/2017F:\Active Projects\162000\161181 Avila Ranch CFD Tecgnical Support\Models\161181 ModelPacket Pg 1588
Exhibit B
City of San Luis Obispo CFD No. 2017-1 (Services)
Draft List of Authorized Services
List of Authorized Services
The authorized services to be funded from the levy and collection of annual special taxes include
those set forth below in addition to the costs associated with collecting and administering the
special taxes, annually administering the District, and costs associated with forming the District.
The authorized services to be funded include:
1. Maintenance and lighting of parks, parkways, streets, roads, and open space.
2. Flood and storm protection services, including, but not limited to, the operation and
maintenance of storm drainage systems.
3. Police protection services, including, but not limited to, criminal justice services. However,
criminal justice services shall be limited to providing services for jails, detention facilities, and
juvenile halls.
4. Fire protection and suppression services, and ambulance and paramedic services.
5. Maintenance and operation of any real property or other tangible property with an estimated
useful life of five or more years that is owned by the local agency or by another local agency
pursuant to an agreement entered into under Section 53316.2.
List of Authorized Facilities
The authorized facilities to be funded from the levy and collection of annual special taxes include:
1. Local park, recreation, parkway, and open-space facilities.
2. The district may also finance the construction or undergrounding of water transmission and
distribution facilities, natural gas pipeline facilities, telephone lines, facilities for the
transmission or distribution of electrical energy, and cable television lines to provide access
to those services to customers who do not have access to those services or to mitigate
existing visual blight.
3. The district may also finance the acquisition, improvement, rehabilitation, or maintenance of
any real or other tangible property, whether privately or publicly owned, for flood and storm
protection services, including, but not limited to, storm drainage and treatment systems and
sandstorm protection systems.
4. A community facilities district may also finance the purchase, construction, expansion,
improvement, or rehabilitation of any real or other tangible property with an estimated useful
life of five years or longer or may finance planning and design work that is directly related to
the purchase, construction, expansion, or rehabilitation of any real or tangible property. The
facilities need not be physically located within the Dstrict.
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Avila Ranch Financing Plan &
Community Facilities District
Hearing Report
Prepared for:
City of San Luis Obispo
Prepared by:
Economic & Planning Systems, Inc.
October 10, 2017
EPS #161181
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Table of Contents
1. EXECUTIVE SUMMARY ............................................................................................ 1
2. AVILA RANCH PROJECT OVERVIEW ............................................................................. 3
Avila Ranch Development Plan ................................................................................. 3
Project Planning and Regulation ............................................................................... 5
3. SERVICES AND IMPROVEMENTS TO BE FUNDED ................................................................ 6
Municipal Services .................................................................................................. 6
Infrastructure Improvements ................................................................................... 8
4. FUNDING AND FINANCING SOURCES ......................................................................... 10
Avila Ranch Funding Sources ................................................................................. 10
Economic Considerations ....................................................................................... 12
5. IMPLEMENTATION MEASURES AND RELATED ACTIONS ...................................................... 13
Appendices
APPENDIX A Avila Ranch Services CFD Preliminary Rate Allocation, Local Area
Maintenance and Fiscal Mitigation Combined
APPENDIX B Avila Ranch Infrastructure Cost and Allocation Analysis
List of Tables
Table 1 Sources and Uses of Avila Ranch Infrastructure Financing ...................................... 2
Table 2 Summary of Avila Ranch Services CFD, Preliminary Rate Allocation
at Development Stabilization .............................................................................. 6
Table 3 Infrastructure Costs by Type of Infrastructure ...................................................... 8
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Economic & Planning Systems, Inc. 1
1. EXECUTIVE SUMMARY
The Avila Ranch Financing Plan and Community Facilities Hearing Report (Financing Plan)
identifies the municipal services and infrastructure required to serve the Avila Ranch Project and
describes how these will be funded and/or financed over time. In addition to providing a general
description of how required municipal services and infrastructure will be funded, the Financing
Plan provides a basis for financial terms included in the Development Agreement and also for the
Community Facilities District Rate and Method of Apportionment.
The Avila Ranch Project will create a new City neighborhood located at the northeast corner of
Buckley Road and Vachell Lane. The Avila Ranch Development Plan allows up to 720 dwelling
units; a “Town Center” with 15,000 square feet of local-serving retail and office uses; 18 acres of
pocket parks, mini-parks and neighborhood parks; and 53 acres of open space, including riparian
corridors and farmed agricultural land. The Financing Plan addresses how the Avila Ranch Project
will pay for both municipal services and the infrastructure needed as the new neighborhood is
constructed and occupied by new residents and businesses.
Municipal services include both “Citywide” services and also local area maintenance services
provide by the City within the Project area. Services covered by the Financial Plan include
maintenance responsibilities for bike paths in the County, and fulfillment of airport noise
complaint mitigation agreed to between the Airport Land Use Commission, the project, and
the San Luis Obispo County Airport. The need for special funding for these services is
created, in part, by the Property Tax Sharing Agreement (adopted by the City and the
County in 2008) as a part of the area’s annexation to the City that provides no property tax
to the City.
Infrastructure needed for the Avila Ranch includes contributions to Citywide, Specific Plan
and other subarea development impact fee programs, mitigating impacts upon regional (off-
site) infrastructure, and funding “backbone” and subdivision-related improvements within the
Project area.
Funding for recurring municipal services will be derived from municipal taxes, service charges
and fees typically levied by the City augmented by a newly created special tax levied by a Mello-
Roos Community Facilities District (CFD) created for the Project Area.
Funding for infrastructure improvements will be derived from a variety of sources including
direct developer equity investment to build or contribute to building needed infrastructure
improvements. Table 1 presents the “sources and uses” of funding for the range of
infrastructure required.
The key source of infrastructure funding will be “developer equity;” it is estimated that the
developer will invest an estimated $57.0 million directly in project-related infrastructure,
including paying the City’s development impact fees, which will be updated as part of the
City’s development impact fee update.
Some of the developer’s investment in City or region-serving infrastructure will be subject to
private reimbursement from other benefitting properties or potential impact fee crediting
from the City because the developer is either “oversizing” the improvement relative to their
nexus-based “fair share” costs, correcting existing deficiencies, or advancing the
improvement before its actual need. Because Avila Ranch is located on the periphery of the
City, and timing of development is in advance of other development projects in the area,
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existing infrastructure in both the City and County needs significant upgrading to serve the
needs of the Avila Ranch development.
Additionally, Avila Ranch is required to participate in the cost of future cumulative, regional
facilities that the development impacts. Participation in these projects will be through
mitigation fee payments or participation in City impact fee programs.
Table 1 Sources and Uses of Avila Ranch Infrastructure Financing
The City’s (or other development’s) share of City or region-serving infrastructure will be
funded by the City’s development impact fees, exactions on other developers, and other City
or regional funding sources.
The Avila Ranch CFD may provide an additional source for developer reimbursement and will
provide for capital replacement over time, while also providing funding for City services.
The preparation of the Financing Plan occurred through a cooperative effort between the
Developer team and City staff and their respective consultants, concurrently with preparation of
the Avila Ranch Development Plan and related entitlement documents including the Project
Environmental Impact Report, the Fiscal Impact Report, the Vesting Tentative Subdivision Map,
Development Plan and the Development Agreement.
As part of the preparation of the Financing Plan, care has been taken to assure that the financial
burdens upon the developer are consistent with the developer’s need for a reasonable return on
its equity investment, that CFD special taxes fall within the City’s related property tax burden
policy, and that the City has identified sources for its (or other development’s share of
infrastructure costs).
Finally, the specific actions required to implement and administer the financing mechanisms are
identified in Chapter 5, providing guidance as to how the City will proceed with implementation
following action on the Entitlement Documents.
Type Description Developer or
Builder Equity
Developer Equity
subject to Credits or
Reimbursement
Community
Facilities District
Special Taxes
City or Regional
Sources
In‐tract Infrastructure Developer builds neighborhood
streets and facilities shown in
Subdivision Map
Backbone Infrastructure Developer builds major
infrastructure serving Specific
Plan Area shown in Subdivision
Map
Regional Infrastructure Nexus‐based share of major
infrastructure (EIR Mitigation,
etc.)
Regional Infrastructure Oversizing of major
infrastructure
Citywide or Areawide
Infrastructure included in
Development Impact Fee
Programs
Fees paid when building permits
issued
Infrastructure Item Funding Source
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2. AVILA RANCH PROJECT OVERVIEW
The Avila Ranch Project will create a new City neighborhood within the boundaries of the Airport
Area Specific Plan (AASP), and will be regulated by the Development Plan and Specific Plan
adopted by the City. The Project site is approximately 150 contiguous acres located at the
northeast corner of Buckley Road and Vachell Lane, and includes three separate parcels: APN
053-259-006, APN 053-259-004, and APN 053-259-005.
Avila Ranch Development Plan
The Avila Ranch Development Plan (Development Plan) allows up to 720 dwelling units; a “Town
Center” with 15,000 square feet of local-serving retail and office uses; 18 acres of pocket parks,
mini-parks and neighborhood parks; and 53 acres of open space, including riparian corridors and
farmed agricultural land. These features are described in the Development Plan text and
appendices, and on pages 25-89 of the Development Plan. The Development Plan also calls for
community gardens, a bicycle and pedestrian pathway along the Tank Farm Creek riparian
corridor, and bike connections to the Chevron Project to the north and the Octagon Barn bike
facilities to the southwest. Another key improvement specified in the Development Plan is the
extension of Buckley Road to South Higuera Street, consistent with the City’s Circulation
Element.
Residential Uses
The Development Plan includes up to 720 residential units of varied density and type. The R-1
units are proposed to be typical single-family homes with front-loaded and alley-loaded garages.
The R-2 portions of the development obtain access from alleys and common driveways limiting
direct vehicular access points to residential streets. This circulation design allows many of these
R-2 units to front on open space areas or the internal residential collector streets, resulting in
attractive landscaped setbacks rather than a series of driveways. These project circulation
features along with attention to enhancing streetscapes and corridors with landscaping, utilizing
interesting architectural features such as front porches, and maintaining tree-covered sidewalks,
and unobstructed views of surrounding open spaces provide the underlying framework for
creating a walkable and interconnected neighborhood. The R-3 and R-4 units are included at
locations that take advantage of adjacent open spaces, and/or proximity to local jobs, transit,
and shopping.
Table 2 Avila Ranch Development Plan Residential Use Summary
Residential Category Quantity
Single Family R-1 101
Single Family R-2 297
Single Family R-3 197
Single Family R-4 125
Total Residential Units 720
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Neighborhood Commercial Uses
The Neighborhood Commercial area will allow for 15,000 square feet of building area. It will
serve as a focal point and activity center for the project, and will provide shared parking for
nearby open space and parks uses, bicycle parking and storage facilities, public plazas for
gatherings and special events, and transit connections. Because of the nearby retail shopping
center on South Higuera Street, this neighborhood center will focus on small-scale convenience
items, and possibly provide some professional service office space.
Parks and Recreation Uses
The Development Plan designates 18 acres of parkland, which exceeds the General Plan parkland
requirement of 16.5 acres (10 acres per 1,000 population per the Parks and Recreation element)
by 1.5 acres. Proposed facilities include a centrally located 9.5-acre neighborhood park as well as
mini-parks, pocket parks, and community gardens. The “Designated Park” area does not include
passive open space and recreational trails, which are counted as part of the “designated Open
Space.” The neighborhood park will be linked to surrounding neighborhoods, the Tank Farm
Creek riparian corridor and to the regional bikeway system by separated Class I bike paths and
Class II bike lanes, and special pedestrian/bike bridges over Tank Farm Creek.
According to the concept plan approved by the Parks and Recreation Commission, the
neighborhood park will include group BBQs, basketball courts, tot lots, baseball diamonds, soccer
fields, pickle ball courts, tennis courts, a dog park, a skate park, and a community meeting
pavilion area. Eight mini-parks and a pocket park will also serve the neighborhoods. Each will be
one-half to 2.5 acres in size and provide facilities such as community gardens, tot lots, passive
play areas, BBQ and picnic areas, basketball courts, community gardens, dog park, and PC1 - 15
landscaping. These mini- and pocket parks will serve residents within a two-block radius and fill
the few “gaps” in the coverage for the neighborhood park facilities. The mini-parks will be
phased with adjacent residential development to provide park facilities for future residents near
their homes.
Open Space Uses
The Open Space designation is intended to preserve undeveloped or minimally developed land
for preservation of natural resources, production agriculture and public safety. The Land Use and
Circulation Element (“LUCE”) requires 50 percent of the site area to be dedicated as open space,
with up to one-third of that amount allowed to be provided offsite. For this 150-acre project site,
there would be a minimum requirement of 50 acres of onsite open space, with the remainder to
be provided offsite. As proposed, there are 53 acres of open space proposed onsite, which does
not include parks and recreational facilities. The balance of the required open space, 22 acres,
will be provided offsite through open space or agricultural conservation easements, or through
the development impact fee established by the AASP. The Avila Ranch Development Plan
designates the following specific areas for open space:
Planning area creeks, to protect and enhance habitat and recreational values;
Agricultural buffer areas outside of the URL along the Buckley Road frontage and the easterly
project boundary;
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The ACOS Reservation Space in conformance with the ALUP; and
Tank Farm Creek corridor as a linear park, bikeway and passive recreation areas.
Project Planning and Regulation
The Avila Ranch Project has been designed to be consistent with the City’s General Plan policy
framework. The Project, however, will require amendment to the Airport Area Specific Plan, to
convert the area from its present commercial designation to a primarily residential area. The
foundational and parallel entitlement documents include the following:
General Plan
Zoning Ordinance
Airport Area Specific Plan
Avila Ranch Development Plan
Avila Ranch Environmental Impact Report
Avila Ranch Fiscal Impact Report
Avila Ranch Development Agreement
Tentative Vesting Subdivision Map and Conditions
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3. SERVICES AND IMPROVEMENTS TO BE FUNDED
The Financing Plan addresses how the Avila Ranch Project will pay for both municipal services
and the infrastructure needed as the new neighborhood is constructed and occupied by new
residents and businesses.
Municipal Services
Municipal services include both “Citywide” services and also local area maintenance services
provide by the City within the Project area. The need for special funding for these services is
created, in part, by the Property Tax Sharing Agreement (adopted by the City and the County in
February 2008 as a part of a larger annexation of Airport Area Specific Plan properties) that
provides no property tax to the City. The anticipated future municipal services costs have been
calculated based on a fiscal impact analysis of the Avila Ranch Project and also a detailed
assessment of local area maintenance requirements prepared by City staff in collaboration with
the Developer team. Table 2 provides a summary of these municipal services costs which are
further documented in Appendix A – Municipal Services Cost Worksheet.
Table 2 Summary of Avila Ranch Services CFD, Preliminary Rate Allocation at
Development Stabilization
Citywide Services
The Avila Ranch Project is unique from a fiscal perspective given the fact that the Property Tax
Sharing Agreement (with San Luis Obispo County pursuant to Revenue and Tax Code Section 99)
adopted when the area was annexed to the City provides no transfer of property taxes to the
City. This Agreement was adopted by the City because the area at that time was designated in
the City’s General Plan for commercial and industrial uses and these uses were assumed to
generate other taxes (sales and use taxes, etc.) that would offset the cost of providing municipal
services.
The Tax Sharing Agreement follows the framework established in the 1998 Master Agreement
and provides that within the AASP annexation area, no annual property tax increment shall be
transferred from the County to the City, and all existing and future sales tax accruing from
annexed area within the Airport Area are to accrue to the City.
Item Local Area
Maintenance [1]
Fiscal
Mitigation
City CFD
Admin [2]
Contract CFD
Admin [2]Total
Annual Costs in CFD at Buildout $1,168,813 $414,156 $97,500 $33,609 $1,714,079
Annual Cost per Unit at Buildout [3]$1,623 $575 $135 $47 $2,381
Avg. Cost per Unit per Month at Buildout $135 $48 $11 $4 $198
Average Annual Tax Burden 0.28% 0.10% 0.02% 0.01% 0.41%
[1] Includes City and County direct costs, and Transportation and Leisure, Cultural & Social Services operating costs.
[3] Reflects development of 720 units. Does not currently include commercial.
[2] City CFD Admin reflects an FTE to oversee CFD. Contract CFD Admin reflects a 2% charge; to be confirmed.
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Also, there was a presumption that, in the aggregate and after factoring in existing and
projected sales tax revenues, the 2008 620-acre annexation would be fiscally positive. For
example, the City and County analysis showed that annexation of the Airport Area would be
fiscally beneficial to the City and result in an immediate fiscal "net" revenue (operating revenues
less operating costs) of approximately $450,000 upon annexation of the area (largely due to the
existing sales base in the area), increasing to $750,000 upon build-out. At the time of
annexation in 2008, there were existing sales tax revenues of $300,000 annually in the annexed
area, according to the February 2008 Staff Report. Nevertheless, the City and EPS deemed it
prudent to evaluate the Avila Ranch project on its own to guard against any future volatility in
the sales tax revenues and in light of the fact that a significant shift in land use was being
considered related to the rezoning of the Avila Ranch property from business park to residential
uses.
The Fiscal Impact Analysis prepared for the Avila Ranch Project documented municipal service
costs and also the municipal revenues that the Project area is expected to generate as it is
constructed and occupied.1 Key citywide services include the following:
General Government
Police protection
Fire protection
Transportation
Leisure, Cultural and Social Services (includes Park and Landscape Maintenance)
Community Development
Citywide services provided to the Avila Ranch area are estimated to cost some $1.5 million
annually when the Project area is fully developed, before accounting for offsetting municipal
revenue. The net expenditures, after accounting for revenues and off-setting local area
maintenance services, are estimated to cost the City approximately $414,000 per year.2
Local Area Maintenance
The Avila Ranch Specific Plan includes a high standard of infrastructure and public facilities that
will require maintenance. City staff and the Developer team have collaborated to develop a
detailed assessment of the maintenance requirements of the infrastructure facilities, as
documented in Appendix A.
Local area maintenance services provided to the Avila Ranch area are estimated to cost
approximately $1.1 million annually when the Project area is fully developed. Key services
include the following:
Maintenance of parks and greenbelts
Maintenance of residential collectors and arterials, including lighting
Maintenance of the Venture Drive bridge over Tank Farm Creek
1 Avila Ranch Fiscal Impact Analysis, ADE, April 2017
2 Fiscal expenditures reflect the revised fire costs and Avila Ranch’s share. The fire costs were revised
subsequent to the ADE analysis referenced above.
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Maintenance of storm drains
The Buckley Road bike path (County) and County Airport Sound Abatement services
Infrastructure Improvements
Infrastructure and municipal facilities required to serve the Project include “Backbone” and “In-
tract” Infrastructure as well as “City-serving or regional infrastructure” which is generally located
beyond the Project boundary but require improvement (at least in part) due to development of
the Project area. These future municipal services costs were estimated by conducting a fiscal
impact analysis of the Avila Ranch Project and also a detailed assessment of local area
maintenance requirements prepared by City staff in collaboration with the Developer team.
Table 3 provides a summary of these infrastructure costs which are further documented in
Appendix B – Project Infrastructure Cost Worksheet.
Table 3 Infrastructure Costs by Type of Infrastructure
Backbone and In-tract Infrastructure
The Avila Ranch Project, proposed for a largely undeveloped area, will require the full
complement of local infrastructure to serve the Project area including streets and in-street
utilities, drainage, parks and trails, and bikeways. These improvements are typically divided into
“in-tract” improvements, such as neighborhood streets and utilities, and “backbone”
improvements, including collector streets and public facilities (such as parks) that serve the
whole project area.
Key Backbone Improvements include the following:
Buckley Road Extension from Vachell Lane to South Higuera Street
Venture Road Residential Collector
Tank Farm Creek and Buckley Frontage Bike Path
Type of Infrastructure Total Project
Costs [1]
Transportation $37,234,884
Parks $6,645,500
Water and Sewer $427,500
Public Safety $1,346,250
Intract Improvements $20,896,000
Offsite Improvements $552,000
Total Infrastructure Expenses $67,102,134
Sources: Avila Ranch LLC; City of San Luis Obispo.
[1] Total Project Infrastructure costs whether Avila Ranch is building or
paying fees.
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Horizon Lane Collector south of Suburban
Earthwood Collector
Various Transit Stops
Improvements to City-serving and Regional Infrastructure
The Avila Ranch project, as it develops, will contribute to the demand for City-serving and
region-serving infrastructure improvements, including the following:
Improvements related to Buckley Road along the Project’s frontage
Vachell Lane improvements
Various sidewalk improvements
Intersection improvements at Tank Farm Road/South Higuera and South Street/South
Higuera
Horizon Lane south of Tank Farm
Bob Jones Trail Bike Path
Vachell Lane Widening
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4. FUNDING AND FINANCING SOURCES
Avila Ranch Funding Sources
Developer Equity
Developer equity will be the primary source of funding for infrastructure improvements needed
to serve the Avila Ranch area. Developer (or builder) equity will pay impact and mitigation fees,
fund construction of all “in-tract” and “backbone” improvements located within the Avila Ranch
area, fund the Project’s “fair share” allocation of off-site “regional” improvements, of which some
will be subject to fee credits, and advance funding over and above the “fair share” costs, a
portion of which will be subject to reimbursement by the City. It is estimated that total developer
equity necessary to fund the backbone and in-tract infrastructure and region-serving
infrastructure (including the amount beyond the nexus-based “fair share” amount) is $57.0
million.
Participation in Area and Citywide Development Impact Fee Programs
The Avila Ranch Project will be subject to the City’s various development impact fee programs,
including the existing Airport Area Specific Plan fees, the Citywide Traffic Impact fee, LOVR
interchange reimbursement fee, special ad hoc fees for environmental mitigation, and water and
sewer connection fees as levied at the time building permits are issued. This obligation typically
involves paying the impact fees at the time individual building permits are issued. Additional fees
are charged by regional agencies including the local school districts. It is important to note that
the current AASP does not include fee categories for residential or retail land uses. During 2017
the City engaged in a comprehensive effort to update and reorganize its impact fees. This update
includes the recalculation of existing impact fees (excluding the water and sewer connection
charges), the consideration of fees for public safety and other community facilities, and the
consolidation and redistribution of cost items included in the City’s area impact fee programs.
The AASP impact fee program will need to be revised or replaced to incorporate appropriate fee
levels for the Avila Ranch project.
Construction and dedication of “in-tract” improvements
As is common practice, the developer of Avila Ranch will build in-tract and backbone
infrastructure within, and on the periphery of, the Avila Ranch area to the specification of the
City as documented in the Tentative Subdivision Map and subsequently dedicate these
improvements and underlying lands to the City.
“Fair Share” allocation of other improvement costs
The development of the Avila Ranch Project will increase traffic on existing roadways and create
demand for other City/County infrastructure. Many of these improvements are facilities located
beyond the project boundary. This additional demand was studied in detail as part of the
Environmental Impact Report (EIR) and the mitigation measures identified to maintain policy-
based levels of service on these facilities. The mitigation program includes Avila Ranch
completing improvements along Higuera Road, extending Buckley Road from Vachell to Higuera,
as well as improving Buckley as it fronts the development, among others. The EIR requires these
improvements to be installed ahead of need and improved to the 2035 General Plan buildout
configuration to the extent feasible. Consequently, the project will construct improvements that
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are necessary to correct existing deficiencies and to accommodate traffic and other impacts
above and beyond its own impacts.
Funding regional improvements above the “Fair Share” allocation
The Avila Ranch developer has offered to provide funding for regional improvements beyond the
Project boundary, and beyond its fair share to build out the improvement to their ultimate
configuration to maximum extent feasible. While not expressly obligated to do so, such additional
contribution assures that the regional improvements will be built in a timely and efficient
manner, benefiting the developer, the City, and the County. Consequently, there are no
improvements that are being funded directly by the City or others. Funding for the costs above
the project’s fair share will come from future development impact fees generated by the project
itself in the form of AASP, citywide and LOVR impact fees, direct contribution from other projects
benefiting from those improvements, and fees generated elsewhere in the City and AASP. In
some cases, although a project is eligible for reimbursement, Avila Ranch will carry the full cost
burden because a facility is not included in one of the funding mechanisms mentioned above.
Development Impact Fee or Exaction Revenue
Insofar as other developers/builders are obligated to pay their “fair share” of infrastructure
improvements by paying the Citywide and area development impact fees or additional nexus-
based “exactions,” a portion of this revenue will be used for reimbursement for investments
above “fair share” made by the Avila Ranch developer (or other nearby developers that may
advance funding for construction of fee-funded facilities and improvements).
Community Facilities District
The owners of the property have requested and the City has agreed to form a Community
Facilities District (CFD) subject to Council action for the Avila Ranch area. Such a CFD, pursuant
to the Community Facilities District Act of 1982, allows for the levy of a special tax on real
property located within the designated boundary of the CFD for a range of purposes including
providing funding for municipal services, local area maintenance, and infrastructure. It is
common for the special taxes to be used to service municipal bonds issued for the CFD to fund
new development-related infrastructure; however, the CFD for Avila Ranch will be used to fund
ongoing City services and infrastructure maintenance as described below. Usage of this financing
mechanism is warranted for a number of reasons, including that the project provides significantly
greater amount of parks space, open space, bike trails, and other amenities than typical of other
developments in the City.
The Avila Ranch CFD, as currently envisioned, will provide funding for City service costs not
covered by existing taxes (i.e., “fiscal mitigation”) and also for funding maintenance of municipal
improvements located within the Avila Ranch area. The CFD may also be used as a source of
funding to meet the City’s obligation to reimburse developer funding of regional improvements
above “fair share” and also as a source for repair and replacement of local area serving facilities
(e.g., local streets, drainage and flood protection facilities, and landscaping).
Other Funding Sources
Funding for the City’s share of regional improvement costs may be derived from a variety of
sources typically used by the City to fund infrastructure, including proceeds from federal, State,
and regional grants. However, no grants are currently identified and; moreover, grant funded
infrastructure projects require prevailing wages.
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Economic Considerations
Project Feasibility
As a part of achieving new development as envisioned in the City’s General Plan and specified in
specific plans or other zoning actions, it is in the interest of the City to cooperate with developers
and builders to promote feasibility of new development, i.e., that new development generates
economic returns sufficient to attract necessary private equity investment and commercial
lending. While market conditions can constrain investment at low points in the business cycle,
over the longer terms the type and amount of development authorized by the City and the costs
imposed for needed infrastructure and facilities should balance so as not to unnecessarily impede
desired development.
Financial Burden Measures
A variety of methods are used to determine the cost burden placed upon new development
associated with providing the necessary infrastructure including in-tract and backbone
infrastructure improvements and contributions to City-serving infrastructure through payment of
impact fees or other mechanisms. The Avila Ranch Project, given the real estate values created
and the total cost of infrastructure improvements, is shown to fall within reasonable levels of
financial burden.
Incidence of Burdens
Depending upon the type of funding relied upon to develop a project, the “incidence” of the
burden (who pays?) varies. Equity provided by the developer for project costs including
contributions to public infrastructure and facilities is a burden on the equity investors in the
project. Special taxes or assessments on real property are a burden on the local homeowners or
businesses subject to these taxes or assessments. Excise taxes (e.g., sales taxes, utility taxes,
transient occupancy taxes) are a burden on those engaging in purchases of these goods. The
City has established CFD policies which place a 1.8 percent “cap” on property tax burdens. The
Avila Ranch project is located in County Tax Rate Area (TRA) 003-022 which has a total current
tax rate of 1.07225 percent,3 including the basic 1 percent rate plus “overrides” related to voter-
approved general obligation bonds and special taxes or assessments. Future additional tax
overrides may also be approved in the future.
In addition to this policy “cap,” market conditions also influence the amount of tax levied. For
example, an increase in the amount of taxes levied on real property will affect a home buyers’
ability to qualify for mortgage financing and in turn, the price they are willing to pay for the new
home. In the City of San Luis Obispo, Home Owners Associations’ burdens range from
approximately $100 per month (peak phases of Serra Meadows, Toscana, Trillium) to a high of
$239 per month at Avivo, a full-service condominium project that provides structural
replacement, common open space, and community buildings.
3 San Luis Obispo County Auditor-Controller.
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5. IMPLEMENTATION MEASURES AND RELATED ACTIONS
The Financing Plan will be implemented concurrent with approval and subsequent development
of the Avila Ranch area. Key components of implementation will include the following.
Development Agreement
The Entitlement Documents for the Avila Ranch Project will include a Development Agreement, a
contract between the Developer and the City that vests the entitlement over a long term (15 or
20 years) as consideration for extraordinary benefits to be received by the City for granting the
vesting. The Avila Ranch Development Agreement largely provides a framework and security for
funding the regional infrastructure improvements and the related reimbursement to the
Developer for investments that exceed the “fair share” cost allocation for these improvements.
Development Impact Fees and Exactions
The Avila Ranch Project development will be subject to the City’s development impact fees as
they will exist at the time building permits are issued. At the present time, the Project is subject
to the City’s water and wastewater connection fees, transportation impact fee, Airport Area
Impact Fees, Los Osos Valley Road Interchange Fee, parks fees, and public art in lieu fees.
Concurrent with consideration of the Avila Ranch Project, the City is engaged in an effort to
update its development impact fees, potentially resulting in the inclusion of new facilities in the
Citywide fees and also reallocation of infrastructure items among the area impact fees and the
Citywide fees. The Project will also be responsible for building or funding improvements, termed
“exactions,” as specified in the Final Environmental Impact Report. The Development Agreement
will include further specification regarding the Project’s development impact fee and exaction
obligations.
Fee Obligations
Subject to the terms included in the Development Agreement, new development in the Avila
Ranch Project will pay the fees existing at the time building permits are issued, i.e., be subject to
the fees that result from the Development Impact Fee Update.
Reimbursement Agreement(s)
The Avila Ranch Development Agreement will enable and specify the terms and security for
reimbursement agreements that will be created for each of the individual regional improvements.
Presently, reimbursement agreements are expected for the following off-site, Citywide or
regional facilities:
Suburban Widening east of Earthwood
Horizon Collector south of Suburban to Avila Ranch with right-of-way
Source of Reimbursement Agreement funding
A number of infrastructure improvements are specified in the City’s development impact fee
programs and Environmental Impact Fee mitigation measures that the Avila Ranch Developer will
fund or build beyond its “fair share” allocation of cost. These contributions will be eligible for
reimbursement from fees paid by other developers benefiting from these improvements or from
other sources.
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Projects Eligible for Private Reimbursement
Two projects have been identified that may be eligible for private reimbursement. Alternatively,
these improvements may be incorporated into the updated Impact Fee Program.
Buckley Road Extension Bike Path
Vachell/Buckley Intersection Control (if installed)
Projects Eligible for Impact Fee Credits
Insofar as the Developer builds or directly funds infrastructure improvements that are included in
one of the City’s development impact fees (e.g., Airport Area, Traffic Impact Fee, etc.), the
Developer is eligible to receive a dollar-for-dollar credit against its fee obligations for these
improvements. The Development Agreement will specify the precise terms of these fee credits.
South Higuera/South Street NB RT Lane (may occur as a private reimbursement)
Tank Farm/Higuera SB LT and WB LT
South Higuera Sidewalk
Tank Farm Creek Bike Path and Bridges
Community Facilities District
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. The levy of any special tax
and any related bond issuance is subject to voter approval, if the area is inhabited approval by
two-thirds of the voters in the area is required. If fewer than 12 voters are located in the area,
approval by the landowners is required (Avila Ranch area currently has no residential uses).
City Policy and Approach
The City of San Luis Obispo has not, before this Avila Ranch Project, created any CFDs. The City
has, in anticipation of Avila Ranch and other development-related financing requirements,
adopted policies and procedures related to CFDs that guide formation of the Avila Ranch CFD. A
key policy adopted by the City is that “aggregate” property tax burden within the City should not
exceed 1.8 percent of assessed value annually.
Funding Capacity
The funding capacity of a CFD is based upon the type and amount of development within the
bounds of the CFD and the amount of the special tax levied against each parcel. Special taxes
levied as part of a CFD must clearly specify a “rate and method of apportionment” which defines
the amount of the tax levied on each parcel and how the amount may be increased (indexed)
over time to account for inflationary cost increases. Generally, CFD special taxes are limited to a
fraction of the 1 percent property tax allowed under Article 13 A of the State Constitution.
The funding capacity of the Avila Ranch Project, taking account of the market value of
development being created, the existing general and special taxes, and the City’s established
special tax “cap” of 1.8 percent, is estimated to be approximately $2.9 million annually. Given
market conditions and maximum equivalent HOA rates in the community of $200 per month, and
the significant amount of smaller multifamily units, the aggregate tax burden on residential units
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may limit this capacity to below this maximum, resulting in a funding capacity of approximately
$1.7 million per year.
Special Tax Components
The Avila Ranch CFD is primarily being formed to provide a source for funding Citywide services
and the maintenance and replacement of public facilities and infrastructure within the Project
area. The “Rate and Method of Apportionment” that will be developed as part of CFD adoption
will specify how the Avila Ranch special taxes shall be allocated to these uses. Based upon
current cost analysis, the allocation of CFD special tax funding at full development of the Avila
Ranch Project area would be as follows:
Citywide Services $414,000
Local Area Maintenance (City) $1.1 million
County Services $66,000
Capital Reimbursement (through 2035/36) $176,000
CFD Administration (City) $97,500
CFD Administration (Contract) $33,500
CFD Administration
The City will be required to administer the CFD from year to year. Given the nature of the special
tax (a fixed tax rate plus an index-based inflator), this administration is quite simple, involving
sending documentation to the County Tax Collector as the annual property tax bills are prepared.
This service is typically provided by consultants to the City and costs approximately $10,000 to
$20,000 per year depending upon the size of the CFD and complexity of the special tax. There
will be some additional administration required by the Finance Department to control CFD funds
consistent with the terms of the Rate and Method of Apportionment and related financial
reporting (in the CAFR, etc.).
Formation Process
It is anticipated that the CFD formation will be initiated at the time the Avila Ranch Entitlement
Documents are considered for adoption by the City Council. The following steps must be
accomplished as part of the CFD formation process:
Develop CFD concept and document costs to be funded
Map CFD Boundary and conduct voter determination (area occupied area or unoccupied?)
Prepare Rate and Method of Apportionment
Adopt Resolution of Intention
Adopt Resolution of Formation and set date for election
Conduct election (or obtain landowner approval)
Adopt Ordinance to Levy Special Tax
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APPENDIX A:
Avila Ranch Services CFD Preliminary Rate Allocation,
Local Area Maintenance, and Fiscal Mitigation Combined
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Table A-1Summary of Avila Ranch Services CFD Preliminary Rate Allocation at Development StabilizationItemLocal Area Maintenance [1]Fiscal MitigationCity CFD Admin [2]Contract CFD Admin [2]TotalAnnual Costs in CFD at Buildout$1,168,813 $414,156 $97,500 $33,609 $1,714,079Annual Cost per Unit at Buildout [3]$1,623$575$135$47 $2,381Avg. Cost per Unit per Month at Buildout$135$48$11$4$198Average Annual Tax Burden0.28% 0.10% 0.02% 0.01%0.41%[1] Includes City and County direct costs, and Transportation and Leisure, Cultural & Social Services operating costs.[3] Reflects development of 720 units. Does not currently include commercial.[2] City CFD Admin reflects an FTE to oversee CFD. Contract CFD Admin reflects a 2% charge; to be confirmed. Economic & Planning Systems, Inc. 9/1/2017P:\161000s\161181AvilaRanch\CFD\Avila Ranch CFD Cost Review 8-01-2017.xlsxPacket Pg 1798
Table A-2Avila Ranch Services CFD Preliminary Rate Allocation, Local Area Maintenance and Fiscal Mitigation CombinedAnnual Revenue/ExpenditureTotal 1 2 3 4 5 6Per Unit (720 Units)Units179292141971010Cumulative Units 179208422619720720Duration/Years30.5222City ComponentLocal Area MaintenanceAnnual Local Area Maintenance Costs($1,103,267) ($319,764) ($100,763) ($77,667) ($365,700) ($239,373)$0($1,532)CFD Project Delivery (Admin. Costs)($97,500)($45,000)($6,752)($5,204)($24,504)($16,040)$0($135)Total LAM Component($1,200,767) ($364,764) ($107,515) ($82,871) ($390,204) ($255,412)$0($1,668)Fiscal MitigationAnnual Fiscal Revenues $850,605 $226,093 $37,043 $226,790 $212,760 $141,120 $6,797 $1,181Annual Fiscal Expenditures $1,529,825 $377,472 $61,155 $451,280 $415,430 $212,987 $11,500 $2,125less Park and Landscape Maintenance$213,528 $42,706 $0 $40,037 $130,786 $0 $0 $297less Transportation$51,536$12,565$2,059$15,334$13,985$7,170$423$72Revised Subtotal, Fiscal Expenditures$1,264,761 $322,201 $59,096 $395,909 $270,659 $205,817 $11,077 $1,757Net Fiscal Impact($414,156) ($96,108) ($22,053) ($169,119) ($57,899) ($64,697) ($4,280) ($575)CFD CalculationsTotal City Costs in CFD (LAM and Fiscal)$1,614,923 $460,872 $129,568 $251,990 $448,104 $320,109$4,280 $2,243Administrative Charge (at 2%)$32,298$9,217$2,591$5,040$8,962$6,402$86$45Total CFD Costs (Annual)$1,647,221 $470,090 $132,159 $257,030 $457,066 $326,512$4,366 $2,288Cumulative CFD Costs$470,090 $602,249 $859,279 $1,316,344 $1,642,856 $1,647,222Cumulative Annual CFD Cost per DU$2,626$2,895$2,036$2,127$2,282$2,288Cumulative Monthly CFD Cost per DU$219$241$170$177$190$191 $191Development Value by Phase$414,360,200 $118,050,500 $19,125,500 $99,320,500 $100,174,500 $77,689,200 $4,500,000Cumulative Development Value$118,050,500 $137,176,000 $236,496,500 $336,671,000 $414,360,200 $418,860,200 $581,750Average Annual CFD Tax Burden by Phase0.40%0.44%0.36%0.39%0.40%0.39% 0.39%County ComponentLocal Area Maintenance($65,546) ($13,425) ($13,721) ($16,050) ($14,775) ($7,575)$0($91)Combined CFD CalculationsTotal Costs (with County) in CFD$1,680,469 $474,297 $143,289 $268,040 $462,879 $327,684$4,280 $2,334Administrative Charge (at 2%)$33,609$9,486$2,866$5,361$9,258$6,554$86$47Total CFD Costs (Annual)$1,714,079 $483,783 $146,155 $273,401 $472,136 $334,238$4,366 $2,381Cumulative CFD Costs$483,783 $629,938 $903,339 $1,375,475 $1,709,713 $1,714,079Cumulative Annual CFD Cost per DU$2,702.70 $3,028.55$2,141$2,222$2,375$2,381Cumulative Monthly CFD Cost per DU$225$252$178$185$198$198 $198Development Value by Phase$414,360,200 $118,050,500 $19,125,500 $99,320,500 $100,174,500 $77,689,200 $4,500,000Cumulative Development Value$118,050,500 $137,176,000 $236,496,500 $336,671,000 $414,360,200 $418,860,200 $581,750Average Annual CFD Tax Burden by Phase0.41%0.46%0.38%0.41%0.41%0.41% 0.41%Cost Allocation per Unit per Month$225.23 $252.38 $178.38 $185.17 $197.88 $198.39Recommended Rate per Unit per Month$225.00 $225.00 $200.00 $200.00 $200.00 $200.00Annual CFD Revenue by Phase$483,300 $561,600 $1,012,800 $1,485,600 $1,728,000 $1,728,000Cost$483,783 $629,938 $903,339 $1,375,475 $1,709,713 $1,714,079Phase Cash Flow($483) ($68,338)$109,461 $110,125 $18,287 $13,921Cumulative Operating Reserve($483) ($68,821)$40,640 $150,765 $169,052 $182,973Sources: City of San Luis Obispo; Avila Ranch LLC; ADE; Kosmont; Economic & Planning Systems, Inc.Phase/Revenue and ExpensesEconomic & Planning Systems, Inc. 9/1/2017P:\161000s\161181AvilaRanch\CFD\Avila Ranch CFD Cost Review 8-01-2017.xlsxPacket Pg 1808
Table A-3Local Area Maintenance Annual Cost AssumptionsAvila Ranch CategoryAsset ActivityCost Interval (years)Cost Unit Unit Cost Annual Cost/Unit 1 2 3 4 5 6179292141971010City Maintained AssetsParks and GreenbeltsLeisure, Cultural & Social Services Infrastructure & TransportationBridgePed/Bike Bridges100 Each100,000.00$ 1,000.00$ 1 1 Parks and GreenbeltsTransportationNeighborhood WellnessLandscape Maintenance Medians0.083 SF0.04$ 0.48$ 00000Parks and GreenbeltsTransportationNeighborhood WellnessLandscape Maintenance Parkway0.083 SF0.02$ 0.24$ 60,540 9,100 7,000 29,820 41,900 Parks and GreenbeltsTransportationNeighborhood WellnessLandscape Parkway Water (1.21 AF/Ac per WSA)1.000 Acre-Foot3,560.00$ 3,560.00$ 1.68 0.25 0.19 0.83 1.16 - Parks and GreenbeltsTransportationNeighborhood WellnessLandscape Maintenance RAB0.083 SF0.04$ 0.48$ 2,289 4,578 Parks and GreenbeltsTransportationCommunity SafetyLandscape Drainage Basin Inspection1 Each600600.00$ 1.00 1.00 1.00 1.00 1.00 Parks and GreenbeltsTransportationCommunity SafetyLandscape Maintain Water Quality BMPs Monthly0.083 SF0.030.36$ 19,368.00 4,248.00 2,520.00 15,480.00 12,564.00 Parks and GreenbeltsTransportationCommunity SafetyLandscape Inspect Water Quality BMPs per rain0.333 SF0.010.03$ 19,368.00 4,248.00 2,520.00 15,480.00 12,564.00 Parks and GreenbeltsTransportationInfrastructure & TransportationLandscape Retaining50 SF38.00$ 0.76$ 7,250 Parks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessLandscape Sound Berm0.083 SF0.02$ 0.20$ 29,131 Parks and GreenbeltsLeisure, Cultural & Social Services Environmental Health and Open Space Open Space Ongoing Open Space Maintenance1 Acre19.48$ 19.48$ 5.30 2.40 1.70 10.50 14.00 Parks and GreenbeltsLeisure, Cultural & Social Services Environmental Health and Open Space Open Space Operating - Natural Resources Protection1 Acre89.61$ 89.61$ 5.30 2.40 1.70 10.50 14.00 Parks and GreenbeltsLeisure, Cultural & Social Services Environmental Health and Open Space Open SpaceOperational--Ranger Services1 Acre73.04$ 73.04$ 5.30 2.40 1.70 10.50 14.00 Parks and GreenbeltsLeisure, Cultural & Social Services Environmental Health and Open Space Open SpaceRanger Vehicle1 Acre5.00$ 5.00$ 5.30 2.40 1.70 10.50 14.00 Parks and GreenbeltsLeisure, Cultural & Social Services Infrastructure & TransportationBike PathClass I Bike Path Rehabilitation50 SF14.50$ 0.29$ 24,480 12,840 5,760 10,080 19,200 Parks and GreenbeltsLeisure, Cultural & Social Services Infrastructure & TransportationBike PathClass I Bike Path Sealing8 SF0.80$ 0.10$ 24,480 12,840 5,760 10,080 19,200 Parks and GreenbeltsLeisure, Cultural & Social Services Infrastructure & TransportationBike Path Class I Light Energy (1/75 LF)1 Each13.00$ 13.00$ 27 14 6 11 21 - Parks and GreenbeltsLeisure, Cultural & Social Services Infrastructure & TransportationBike Path Class I Light Maintenance1 Each12.00$ 12.00$ 27 14 6 11 21 Parks and GreenbeltsLeisure, Cultural & Social Services Infrastructure & TransportationBike Path Class I Light Pole Replacement75 Each3,000.00$ 40.00$ 27 14 6 11 21 Parks and GreenbeltsLeisure, Cultural & Social Services Infrastructure & TransportationBike Path Class I Light Replacement25 Each2,500.00$ 100.00$ 27 14 6 11 21 Parks and GreenbeltsLeisure, Cultural & Social Services Infrastructure & TransportationBike PathClass I Vegetation Removal0.25 SF0.05$ 0.20$ 32,640 17,120 7,680 13,440 25,600 - Parks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkRecreation Structures (Shelters/Pergolas)50 SF150.00$ 3.00$ 400 600 2,900 4,000 Parks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkRecreation Structures (Coatings)10 SF1.67$ 0.17$ 400 600 2,900 4,000 Parks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkOperating - Parks Maintenance1 Acre10,162.47$ 10,162.47$ 3.14 1.34 0.81 10.38 2.58 Parks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkPark Energy Costs1 Acre360.00$ 360.00$ 3.14 1.34 0.81 10.38 2.58 Parks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkPark Water Cost (Avg 1.49 AF/Ac per Parks Plan)1 Acre-Foot3,560.00$ 3,560.00$ 4.68 2.00 1.21 3.84 - Parks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkPark Water Well Replacement75 Each60,000.00$ 800.00$ 0.20 0.20 0.20 0.20 0.20 Parks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkPark Water Well Pump and Booster10 Each4,000.00$ 400.00$ 0.20 0.20 0.20 0.20 0.20 Parks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkPark Water Well Energy Cost0.083 Acre-Foot133.33$ 1,600.00$ 0.20 0.20 0.20 0.20 0.20 Parks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkParking Lot Rehabilitation40 SF14.50$ 0.36$ 17,200 Parks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkParking Lot Sealing10 SF0.80$ 0.08$ 17,200 Parks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkParks Major Maintenance1 Each Park8,448.28$ 8,448.28$ 2 2 1 2 2 Parks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkPlay Equipment Maintenance15 Each Site100,000.00$ 6,666.67$ 2 2 1 2 2 Parks and GreenbeltsTransportationCommunity SafetyStorm DrainCapital Creek Maintenance15 Each100,000.00$ 6,666.67$ 1.00 Parks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessTreePark Tree8 Each300.00$ 37.50$ 154 26 25 234 131 - Parks and GreenbeltsLeisure, Cultural & Social Services Community SafetyTreeRiparian Tree Removal - Storm Event20 Acre150.00$ 7.50$ 5.74 2.37 1.65 2.16 6.16 Residential Collectors and Arterials TransportationInfrastructure & TransportationBridgeBridge Deck Maintenance20 SF50.00$ 2.50$ 3,360 Residential Collectors and Arterials TransportationInfrastructure & TransportationBridgeBridge Replacement100 SF1,700.00$ 17.00$ 3,360 Residential Collectors and ArterialsTransportationInfrastructure & TransportationLighting Street Light Energy1 Each15.00$ 15.00$ 24 5 10 11 14 - Residential Collectors and Arterials TransportationInfrastructure & TransportationLighting Street Light Maintenance1 Each12.00$ 12.00$ 24 5 10 11 14 Residential Collectors and Arterials TransportationInfrastructure & TransportationLighting Street Light Pole Replacement75 Each5,000.00$ 66.67$ 24 5 10 11 14 Residential Collectors and Arterials TransportationInfrastructure & TransportationLighting Street Light Replacement25 Each2,500.00$ 100.00$ 24 5 10 11 14 Residential Collectors and Arterials TransportationInfrastructure & TransportationStreets Operating - Street Maintenance1 SF0.06$ 0.06$ 193,680 42,480 25,200 154,800 125,640 - Residential Collectors and Arterials TransportationCommunity SafetyStorm Drain Drainage Inlets100 Each13,500.00$ 135.00$ 16 4 8 8 4 Residential Collectors and Arterials TransportationCommunity SafetyStorm Drain Manholes100 Each9,500.00$ 95.00$ 21 4 5 11 4 Residential Collectors and Arterials TransportationCommunity SafetyStorm Drain Operating - Flood Control1 LF3.25$ 3.25$ 6,800 550 2,075 2,380 5,500 Residential Collectors and Arterials TransportationCommunity SafetyStorm Drain Pipeline100 LF350.00$ 3.50$ 6,800 550 2,075 2,380 5,500 Residential Collectors and Arterials TransportationInfrastructure & TransportationStreetsAccess Roadway Rehabilitation (Private--Maintained by Homeowners)Residential Collectors and Arterials TransportationInfrastructure & TransportationStreetsAccess Roadway Sealing (Private--Maintained by Homeowners)Residential Collectors and Arterials TransportationInfrastructure & TransportationStreetsCurb and Gutter75 LF35.00$ 0.47$ 10,700 2,400 5,000 6,460 9,100 Residential Collectors and ArterialsTransportationInfrastructure & TransportationStreetsRoadway Rehabilitation75 SF15.00$ 0.20$ 193,680 42,480 25,200 154,800 125,640 Residential Collectors and Arterials TransportationInfrastructure & TransportationStreets Roadway Sealing10 SF1.25$ 0.13$ 193,680 42,480 25,200 154,800 125,640 Residential Collectors and Arterials TransportationInfrastructure & TransportationStreetsReplace Sidewalk100 SF25.00$ 0.25$ 62,700 12,900 29,000 47,100 41,900 Residential Collectors and Arterials Leisure, Cultural & Social Services Neighborhood WellnessTreeStreet Tree (25 LF/Each Side)10 Each300.00$ 30.00$ 600 104 80 365 56 319,764$ 100,763$ 77,667$ 365,700$ 239,373$ -$ County Maintained AssetsParks and GreenbeltsParkClass I Bike Path Rehabilitation40 SF 14.50$ 0.36$ 18,096 Parks and GreenbeltsParkClass I Bike Path Sealing8 SF 0.80$ 0.10$ 18,096 Parks and GreenbeltsPark Class I Light Energy 1 Each 13.00$ 13.00$ 20 Parks and GreenbeltsPark Class I Light Maintenance 1 Each 12.00$ 12.00$ 20 Parks and GreenbeltsPark Class I Light Pole Replacement 75 Each 3,000.00$ 40.00$ 20 Parks and GreenbeltsPark Class I Light Replacement 20 Each 1,500.00$ 75.00$ 20 Parks and GreenbeltsParkClass I Vegetation Removal0.25 SF 0.05$ 0.0200$ 18,096 Parks and GreenbeltsBridge Ped/Bike Bridges 100 Each 100,000.00$ 1,000.00$ - County NoiseDU 75.00$ 179 29 214 197 101 Subtotal--County13,425$ 13,721$ 16,050$ 14,775$ 7,575$ -$ Quantity by PhaseSubtotal--City Maintained Assets w/CFD AllocationEconomic & Planning Systems, Inc. 9/1/2017P:\161000s\161181AvilaRanch\CFD\Avila Ranch CFD Cost Review 8‐01‐2017.xlsxPacket Pg 1818
Table A-3Local Area Maintenance Annual Cost AssumptionsAvila Ranch CategoryAsset ActivityCity Maintained AssetsParks and GreenbeltsLeisure, Cultural & Social Services Infrastructure & TransportationBridgePed/Bike BridgesParks and GreenbeltsTransportationNeighborhood WellnessLandscape Maintenance MediansParks and GreenbeltsTransportationNeighborhood WellnessLandscape Maintenance ParkwayParks and GreenbeltsTransportationNeighborhood WellnessLandscape Parkway Water (1.21 AF/Ac per WSA)Parks and GreenbeltsTransportationNeighborhood WellnessLandscape Maintenance RABParks and GreenbeltsTransportationCommunity SafetyLandscape Drainage Basin InspectionParks and GreenbeltsTransportationCommunity SafetyLandscape Maintain Water Quality BMPs MonthlyParks and GreenbeltsTransportationCommunity SafetyLandscape Inspect Water Quality BMPs per rainParks and GreenbeltsTransportationInfrastructure & TransportationLandscape RetainingParks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessLandscape Sound BermParks and GreenbeltsLeisure, Cultural & Social Services Environmental Health and Open Space Open Space Ongoing Open Space MaintenanceParks and GreenbeltsLeisure, Cultural & Social Services Environmental Health and Open Space Open Space Operating - Natural Resources ProtectionParks and GreenbeltsLeisure, Cultural & Social Services Environmental Health and Open Space Open SpaceOperational--Ranger ServicesParks and GreenbeltsLeisure, Cultural & Social Services Environmental Health and Open Space Open SpaceRanger VehicleParks and GreenbeltsLeisure, Cultural & Social Services Infrastructure & TransportationBike PathClass I Bike Path RehabilitationParks and GreenbeltsLeisure, Cultural & Social Services Infrastructure & TransportationBike PathClass I Bike Path SealingParks and GreenbeltsLeisure, Cultural & Social Services Infrastructure & TransportationBike Path Class I Light Energy (1/75 LF)Parks and GreenbeltsLeisure, Cultural & Social Services Infrastructure & TransportationBike Path Class I Light MaintenanceParks and GreenbeltsLeisure, Cultural & Social Services Infrastructure & TransportationBike Path Class I Light Pole ReplacementParks and GreenbeltsLeisure, Cultural & Social Services Infrastructure & TransportationBike Path Class I Light ReplacementParks and GreenbeltsLeisure, Cultural & Social Services Infrastructure & TransportationBike PathClass I Vegetation RemovalParks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkRecreation Structures (Shelters/Pergolas)Parks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkRecreation Structures (Coatings)Parks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkOperating - Parks MaintenanceParks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkPark Energy CostsParks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkPark Water Cost (Avg 1.49 AF/Ac per Parks Plan)Parks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkPark Water Well ReplacementParks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkPark Water Well Pump and BoosterParks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkPark Water Well Energy CostParks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkParking Lot RehabilitationParks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkParking Lot SealingParks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkParks Major MaintenanceParks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkPlay Equipment MaintenanceParks and GreenbeltsTransportationCommunity SafetyStorm DrainCapital Creek MaintenanceParks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessTreePark TreeParks and GreenbeltsLeisure, Cultural & Social Services Community SafetyTreeRiparian Tree Removal - Storm EventResidential Collectors and Arterials TransportationInfrastructure & TransportationBridgeBridge Deck MaintenanceResidential Collectors and Arterials TransportationInfrastructure & TransportationBridgeBridge ReplacementResidential Collectors and Arterials TransportationInfrastructure & TransportationLighting Street Light EnergyResidential Collectors and Arterials TransportationInfrastructure & TransportationLighting Street Light MaintenanceResidential Collectors and Arterials TransportationInfrastructure & TransportationLighting Street Light Pole ReplacementResidential Collectors and Arterials TransportationInfrastructure & TransportationLighting Street Light ReplacementResidential Collectors and Arterials TransportationInfrastructure & TransportationStreets Operating - Street MaintenanceResidential Collectors and Arterials TransportationCommunity SafetyStorm Drain Drainage InletsResidential Collectors and Arterials TransportationCommunity SafetyStorm Drain ManholesResidential Collectors and Arterials TransportationCommunity SafetyStorm Drain Operating - Flood ControlResidential Collectors and Arterials TransportationCommunity SafetyStorm Drain PipelineResidential Collectors and Arterials TransportationInfrastructure & TransportationStreetsAccess Roadway Rehabilitation (Private--MaintainResidential Collectors and Arterials TransportationInfrastructure & TransportationStreetsAccess Roadway Sealing (Private--Maintained by Residential Collectors and Arterials Transportation Infrastructure & Transportation StreetsCurb and GutterResidential Collectors and Arterials Transportation Infrastructure & Transportation Streets Roadway RehabilitationResidential Collectors and Arterials Transportation Infrastructure & Transportation Streets Roadway SealingResidential Collectors and Arterials Transportation Infrastructure & Transportation StreetsReplace SidewalkResidential Collectors and Arterials Leisure, Cultural & Social Services Neighborhood Wellness Tree Street Tree (25 LF/Each Side)County Maintained AssetsParks and GreenbeltsParkClass I Bike Path RehabilitationParks and GreenbeltsParkClass I Bike Path SealingParks and GreenbeltsPark Class I Light EnergyParks and GreenbeltsPark Class I Light MaintenanceParks and GreenbeltsPark Class I Light Pole ReplacementParks and GreenbeltsPark Class I Light ReplacementParks and GreenbeltsParkClass I Vegetation RemovalParks and GreenbeltsBridge Ped/Bike BridgesCounty NoiseSubtotal--CountySubtotal--City Maintained Assets w/CFD AllocationTotal Units Annual Cost/Item CFD Allocation Allocation to CFD Allocation Comment/Rationale Comment 720 2.00 2,000$ 2,000$ 100% Normal HOA Cost, but general community benefit- -$ -$ 100% Normal HOA Cost, and primarily local benefit 148,360.00 35,606$ 35,606$ 100% Normal HOA Cost, and primarily local benefit 4.12 14,671$ 14,671$ 100% Normal HOA Cost, and primarily local benefit Acre-Ft price provide by City6,867.00 3,296$ 3,296$ 100% Normal HOA Cost, and primarily local benefit 5.00 3,000$ 3,000$ 100% Inspect and Report on Basin 54,180.00 19,505$ 19,505$ 100%yqygroadway surface 54,180.00 1,625$ 1,625$ 100% Inspect BMPs per significant rain event 7,250.00 5,510$ 5,510$ 100% Normal HOA Cost, and primarily local benefit 29,131.00 5,826$ 5,826$ 100% Normal HOA Cost, and primarily local benefit 33.90 660$ 660$ 100% Normal City Responsibility33.90 3,038$ 3,038$ 100% Normal City Responsibility33.90 2,476$ 2,476$ 100% Normal City Responsibility33.90 170$ 170$ 100% Normal City Responsibility72,360.00 20,984$ 20,984$ 100% Normal HOA Cost, but primarily general community benefit72,360.00 7,236$ 7,236$ 100% Normal HOA Cost, but primarily general community benefit80.40 1,045$ 1,045$ 100% Normal HOA Cost, but primarily general community benefit80.40 965$ 965$ 100% Normal HOA Cost, but primarily general community benefit80.40 3,216$ 3,216$ 100% Normal HOA Cost, but primarily general community benefit80.40 8,040$ 8,040$ 100% Normal HOA Cost, but primarily general community benefit96,480.00 19,296$ 19,296$ 100% Normal HOA Cost, but primarily general community benefit7,900.00 23,700$ 23,700$ 100% Difference between Project Parks/1,000 and City Parks/1,0007,900.00 1,319$ 1,319$ 100%18.25 185,465$ 185,465$ 100% Difference between Project Parks/1,000 and City Parks/1,000 Not sure what this covers; direct maintenance 18.25 6,570$ 6,570$ 100% Difference between Project Parks/1,000 and City Parks/1,00011.73 41,746$ 41,746$ 100% Difference between Project Parks/1,000 and City Parks/1,000yy@ (of $9.98 CCF 2017 Base Water 1.00 800$ 800$ 100%1.00 400$ 400$ 100%1.00 1,600$ 1,600$ 100%gFT17,200.00 6,235$ 6,235$ 100% Difference between Project Parks/1,000 and City Parks/1,00017,200.00 1,376$ 1,376$ 100% Difference between Project Parks/1,000 and City Parks/1,0009.00 76,034$ 76,034$ 100% Difference between Project Parks/1,000 and City Parks/1,000 Break down by Acre? 9.00 60,000$ 60,000$ 100% Difference between Project Parks/1,000 and City Parks/1,000yequipment/improvements replaced every 15 years 1.00 6,667$ 6,667$ 100% Normal City Responsibility570.00 21,375$ 21,375$ 100% Difference between Project Parks/1,000 and City Parks/1,00018.08 136$ 136$ 100% Normal City Responsibility3,360.00 8,400$ 8,400$ 100% Normal City Responsibility3,360.00 57,120$ 57,120$ 100% Normal City Responsibility64.00 960$ 960$ 100% Normal City Responsibility64.00 768$ 768$ 100% Normal City Responsibility64.00 4,267$ 4,267$ 100% Normal City Responsibility64.00 6,400$ 6,400$ 100% Normal City Responsibility541,800.00 30,929$ 30,929$ 100% Normal City Responsibility Not sure what this covers; R&R covered elsewhere40.00 5,400$ 5,400$ 100% Normal City Responsibility45.00 4,275$ 4,275$ 100% Normal City Responsibility17,305.00 56,248$ 56,248$ 100% Normal City Responsibility17,305.00 60,568$ 60,568$ 100% Normal City Responsibility- -$ -$ 0% Maintained by homeowners - -$ -$ 0% Maintained by homeowners 33,660.00 15,708$ 15,708$ 100% Normal City Responsibility Full replacement ever 70 years 541,800.00 108,360$ 108,360$ 100% Normal City Responsibility total city currently spends on this item) 541,800.00 67,725$ 67,725$ 100% Normal City Responsibility Every 8 years. What is the current city schedule? 193,600.00 48,400$ 48,400$ 100%1,205.00 36,150$ 36,150$ 100% Normal City Responsibility, primarily local benefitSame as Park Tree; BRE is $35 1,103,267$ 1,103,267$ 1,103,267$ 18,096 6,560$ 6,560$ 100% County to Maintain Buckley; Avila to Maintain Class I 18,096 1,810$ 1,810$ 100% County to Maintain Buckley; Avila to Maintain Class I 20 261$ 261$ 100%County to Maintain Buckley; Avila to Maintain Class I Not sure County will want lights/lighting 20 241$ 241$ 100% County to Maintain Buckley; Avila to Maintain Class I Not sure County will want lights/lighting 20 804$ 804$ 100% County to Maintain Buckley; Avila to Maintain Class I Not sure County will want lights/lighting 20 1,508$ 1,508$ 100% County to Maintain Buckley; Avila to Maintain Class I Not sure County will want lights/lighting 18,096 362$ 362$ 100% County to Maintain Buckley; Avila to Maintain Class I - -$ -$ 100% County to Maintain Buckley; Avila to Maintain Class I 720 54,000$ 54,000$ 100% Per ALUC Approval Condition65,546$ 65,546$ 65,546$ CFD AllocationEconomic & Planning Systems, Inc. 9/1/2017P:\161000s\161181AvilaRanch\CFD\Avila Ranch CFD Cost Review 8‐01‐2017.xlsxPacket Pg 1828
Table A-4
Fiscal Mitigation Assumptions
Budget Category Total
General Fund Revenues
Taxes
Property Tax $0
Property Tax in lieu of VLF $297,169
Sales Tax: General $129,987
Sales Tax: Measure G $64,994
Sales Tax: Public Safety $3,220
Utility Users Tax $122,980
Franchise Fees $34,435
Business Tax Certificates $1,463
Real Property Transfer Tax $22,963
Service Charges
Recreation Fees $58,856
Other Charges for Services $38,704
Other Revenue
Fines and Forfeitures $3,449
Interest Earnings and Rents $4,263
Other Revenues $2,331
Transfers In
Gas Tax/TDA $35,971
Other $29,820
Total Revenues $850,605
General Fund Expenditures
General Government $294,029
Police $332,799
Fire [1]$398,463
Transportation [2]$51,536
Leisure, Cultural and Social Services $130,497
Park and Landscape Maintenance [3]$213,528
Community Development $106,747
Transfers Out $2,226
Total Expenditures $1,529,825
Net Fiscal Impact ($679,220)
Reduce Parks and Landscape Maintenance [4] $213,528
Reduce for Transportation [4] $51,536
REVISED Net Fiscal Impact ($414,156)
[1]
[2] Included in LAM; exclude for Fiscal Mitigation.
[3] Included in LAM; exclude for Fiscal Mitigation.
[4] Included in LAM.
Increased per City allocation 7-28-2017; reflects cost of operating station
and Avila Ranch's share (25% of 590 acres).
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APPENDIX B:
Avila Ranch Infrastructure Cost and Allocation Analysis including
CFD Reimbursement Amount
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Table B-1Summary of Infrastructure FundingType of InfrastructureTotal Project Costs [1] Avila Ranch Pro Rata Share Total Cost of Projects Built by Avila Ranch Additional Mitigation or Impact Fees Being Paid Amount of Potential Private Reimbursement Amount of Potential Impact Fee Credit for Built Projects Final Out of Pocket for Avila Ranch Transportation $37,234,884 $17,622,154 $21,226,500 $5,883,194 ($561,350) ($3,759,000) $22,789,344 Parks $6,645,500 $6,645,500 $6,645,500 $6,645,500 Water and Sewer $427,500 $427,500 $427,500 $427,500 Public Safety$1,346,250 $1,346,250 $1,346,250 $1,346,250 Intract Improvements$20,896,000 $20,896,000 $20,896,000 $20,896,000 Offsite Improvements$552,000 $552,000 $552,000 $552,000 Total Infrastructure Expenses$67,102,134 $47,489,404 $51,093,750 $5,883,194 ($561,350)($3,759,000) $52,656,594 [1] Total Project Infrastructure costs whether Avila Ranch is building or paying fees.Sources: Avila Ranch LLC; City of San Luis Obispo; Economic & Planning Systems, Inc.Economic & Planning Systems, Inc. 9/1/2017P:\161000s\161181AvilaRanch\Capital Costs&Fees\Avila Ranch Infrastructure Cost Analysis_09-01-2017.xlsxPacket Pg 1858
Table B-2
Avila Ranch Infrastructure Cost and Allocation Analysis
Item Total Project
Cost Estimate
Implementation/
Participation by
Avila Ranch
Nexus
Allocation to
Avila Ranch
Allocation to Avila
Ranch (Absent Credits
or Reimbursements)
Percent Up-Front
Amount
Reimbursement
Agreement
Requested/
Recommended?
If Yes, Amount
Subject to Private
Reimbursement
T1 Transit Stops $75,000 Build 100.0%$75,000 100% $75,000 No
T2 Buckley Road Widening - Vachell to Avila PL $2,294,500 Build Ph 1 & 4 50.0%$1,147,250 100% $2,294,500 No
T3 Suburban Sidewalk Sidewalks W/O Earthwood (Existing
Deficiency)$125,000 Build Phase 1 100.0%$125,000 100% $125,000 No
T4 Suburban Signal Modifications $125,000 Build Phase 1 100.0%$125,000 100% $125,000 No
T5 Venture Residential Collector $2,612,000 Build Phase 1,2,3 100.0%$2,612,000 100% $2,612,000 No
T6 Buckley Frontage Bike Path $655,000 Build Phase 1, 4 100.0%$655,000 100% $655,000 No
T7 Horizon/Jesperson Collector Avila Ranch $2,163,000 Build Phase 4 75.0%$1,622,250 100% $2,163,000 No
T8 US 101/S. Higuera Interchange - Prepare PS&E for SB
Ramp Metering $50,000 Complete Phase 1-
2 100.0%$50,000 100% $50,000 No
T9 County Offsite Improvements related to Buckley Road
Intersections (at HWY 227 and Davenport Creek) (T34)$430,000 Payment to County N/A N/A 100% $430,000 No
T10 Vachell Lane Widening, LTL @ Venture, misc sidewalks
and Class II Bike Lanes $650,000 Build Phase 1 50.0%$325,000 100% $650,000 No
T11 Earthwood Collector Suburban to Venture $418,000 Build Phase 1 75.0%$313,500 100% $418,000 No
T12 Buckley Road Extension - Vachell to South Higuera $6,000,000 Build Phase 2 25.0%$1,500,000 100% $6,000,000 No
T13 Suburban Widening E/O Earthwood $450,000 Build Phase 4 34.7%$156,150 100% $450,000 Yes $293,850
T14 Horizon Collector South of Suburban to Avila Ranch
w/ROW $770,000 Build Phase 4 75.0%$577,500 100% $770,000 Yes $192,500
T15 South Higuera/Vachell Lane $150,000 Build Phase 2 50.0%$75,000 100% $150,000 Yes $75,000
T16 Tank Farm/Higuera SB Dual LT $470,000 Build Phase 1 13.4%$62,980 100% $470,000 No $0
T17 Tank Farm Creek Bike Path $860,000 Build Phase 1,2,3 75.0%$645,000 100% $860,000 No
T18 Tank farm Creek Bikepath - Chevron s/o TFR $934,000 Build phase 4 if
ROW 100.0%$934,000 100% $934,000 No
T19 Tank Farm/Higuera WB Dual RT $670,000 Build Phase 4 13.4%$89,780 100% $670,000 No $0
T20 Buckley Extension Bike Path $500,000 Build Phase 2 25.0%$125,000 100% $500,000 No
T21 US 101/LOVR Interchange - Install SB Ramp Metering $250,000 Build Phase 1 100.0%
$250,000 100% $250,000 No $0
T22 South Higuera/South Street NB RT Lane $370,000 Build Phase 1 30.8%$113,960 100% $370,000 Yes 1 $0
T23 South Higuera Sidewalk - Vachell to LOVR $125,000 Build Phase 1 100.0%
$125,000 100% $125,000 No
T24 South Higuera Sidewalk - City Limit to LOVR $80,000 Build Phase 2 24.3%$19,440 100% $80,000 No
Subtotal:$21,226,500 $11,723,810 $21,226,500 $561,350
T25 LOVR Interchange (Impact Fees remaining after
crediting from above)$3,172,464 Pay Impact Fees 100.0%$3,172,464 100% $3,172,464 No
T26 Citywide TIF Impact Fees (Remaining to be paid -
reduced for potential TIF Credit shown above) $ 1,501,920 Pay Impact Fees $1,501,920 100% $ 1,501,920 No
T27 Horizon Lane S/O Tank Farm to Suburban $594,000 Pay Impact Fees 25.0%$148,500 0%$0 No
T28 Prado/Higuera NB Dual LT $750,000 Pay Impact Fees 8.5%$63,750 0%$0 No
T29 Prado/Higuera Cumulative Improvements (Dual LT, RT, 2 Thru) $2,000,000 Pay Impact Fees 0.0%$0 0%$0 No
T30 AASP Impact Fees (Remaining to be paid - reduced for
potential AASP Credit shown above)$0 Pay Impact Fees $0 100%$0 No
T31 LOVR/Higuera Intersection Improvements $2,540,000 Pay MIT Fees 25.4%$645,160 25.4% $645,160 No
T32 Bob Jones Trail Bike Path $1,250,000 Pay MIT Fees 5.8%$72,500 5.8% $72,500 No
T33 Buckley/Vachell Intersection $650,000 Pay MIT Fees 16.5%$107,250 16.5% $107,250 No
T34 Buckley/HWY 227 Intersection $2,700,000 Pay MIT Fees 2.7%$72,900 10.0% $270,000 No
T35 Tank Farm/Higuera NB RT extension $850,000 Pay MIT Fees 13.4%
$113,900 13.4% $113,900 No
Subtotal:$16,008,384 $5,898,344 $5,883,194 $0
Total All Transportation:$37,234,884 $17,622,154 $27,109,694 $561,350
Parks - Land and Improvements (18 acres) $6,645,500 100.0%$6,645,500 100% $6,645,500 No
Water and Sewer $427,500 100.0%$427,500 100% $427,500 No
Public Safety - Interim Fire Station $1,346,250 100.0%$1,346,250 100% $1,346,250 No
Intract Improvements - Not Specified Above $20,896,000 100.0%$20,896,000 100% $20,896,000 No
Offsite Improvements - Not Specified Above $552,000 100.0%$552,000 100% $552,000 No
Subtotal:$29,867,250 $29,867,250 $29,867,250
Grand Total:$67,102,134 $47,489,404 $56,976,944 $561,350
Pay Mitigation Fee - Pro Rata or AASP If Amended into P
Build Project (Eligible for City TIF Fee Credits/Reimburs
Pay Fee - LOVR
Pay Fee - Citywide TIF
Pay AASP Fee (or Mitigation Fee as Identified)
Pay Mitigation Fee - Pro Rata
Build Project (Potential Private Reimbursement)
Build Project (No Reimbursement)
Build Project (Eligible for AASP Fee Credits/Reimbursem
Build Project (Eligible for AASP Fee Credits/Reimbursem
Build Project (Eligible for LOVR Credits)
Allocation to Avila Ranch Developer Equity
Projects to be Built by Avila RanchAvila Ranch Pay Impact Fees/Mitigation FeeOther Costs
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Table B-2
Avila Ranch Infrastructure Cost and Allocation Analysis
Item Total Project
Cost Estimate
T1 Transit Stops $75,000
T2 Buckley Road Widening - Vachell to Avila PL $2,294,500
T3 Suburban Sidewalk Sidewalks W/O Earthwood (Existing
Deficiency)$125,000
T4 Suburban Signal Modifications $125,000
T5 Venture Residential Collector $2,612,000
T6 Buckley Frontage Bike Path $655,000
T7 Horizon/Jesperson Collector Avila Ranch $2,163,000
T8 US 101/S. Higuera Interchange - Prepare PS&E for SB
Ramp Metering $50,000
T9 County Offsite Improvements related to Buckley Road
Intersections (at HWY 227 and Davenport Creek) (T34)$430,000
T10 Vachell Lane Widening, LTL @ Venture, misc sidewalks
and Class II Bike Lanes $650,000
T11 Earthwood Collector Suburban to Venture $418,000
T12 Buckley Road Extension - Vachell to South Higuera $6,000,000
T13 Suburban Widening E/O Earthwood $450,000
T14 Horizon Collector South of Suburban to Avila Ranch
w/ROW $770,000
T15 South Higuera/Vachell Lane $150,000
T16 Tank Farm/Higuera SB Dual LT $470,000
T17 Tank Farm Creek Bike Path $860,000
T18 Tank farm Creek Bikepath - Chevron s/o TFR $934,000
T19 Tank Farm/Higuera WB Dual RT $670,000
T20 Buckley Extension Bike Path $500,000
T21 US 101/LOVR Interchange - Install SB Ramp Metering $250,000
T22 South Higuera/South Street NB RT Lane $370,000
T23 South Higuera Sidewalk - Vachell to LOVR $125,000
T24 South Higuera Sidewalk - City Limit to LOVR $80,000
Subtotal:$21,226,500
T25 LOVR Interchange (Impact Fees remaining after
crediting from above)$3,172,464
T26 Citywide TIF Impact Fees (Remaining to be paid -
reduced for potential TIF Credit shown above) $ 1,501,920
T27 Horizon Lane S/O Tank Farm to Suburban $594,000
T28 Prado/Higuera NB Dual LT $750,000
T29 Prado/Higuera Cumulative Improvements (Dual LT, RT, 2 Thru) $2,000,000
T30 AASP Impact Fees (Remaining to be paid - reduced for
potential AASP Credit shown above)$0
T31 LOVR/Higuera Intersection Improvements $2,540,000
T32 Bob Jones Trail Bike Path $1,250,000
T33 Buckley/Vachell Intersection $650,000
T34 Buckley/HWY 227 Intersection $2,700,000
T35 Tank Farm/Higuera NB RT extension $850,000
Subtotal:$16,008,384
Total All Transportation:$37,234,884
Parks - Land and Improvements (18 acres) $6,645,500
Water and Sewer $427,500
Public Safety - Interim Fire Station $1,346,250
Intract Improvements - Not Specified Above $20,896,000
Offsite Improvements - Not Specified Above $552,000
Subtotal:$29,867,250
Grand Total:$67,102,134
Pay Mitigation Fee - Pro Rata or AASP If Amended into P
Build Project (Eligible for City TIF Fee Credits/Reimburs
Pay Fee - LOVR
Pay Fee - Citywide TIF
Pay AASP Fee (or Mitigation Fee as Identified)
Pay Mitigation Fee - Pro Rata
Build Project (Potential Private Reimbursement)
Build Project (No Reimbursement)
Build Project (Eligible for AASP Fee Credits/Reimbursem
Build Project (Eligible for AASP Fee Credits/Reimbursem
Build Project (Eligible for LOVR Credits)
Developer Final Equity
(Not Subject to Credit
or Reimbursement)
If No and If
Developer Equity
is 100%,
Value to City
If No and If
Developer Equity
is 100%,
Value to County
TIF AASP AASP (Future) LOVR
$75,000
$2,294,500 $1,147,250
$125,000
$125,000
$2,612,000
$655,000
$2,163,000 $540,750
$50,000
$430,000 $430,000
$650,000 $214,500 $110,500
$418,000 $104,500
$6,000,000 $1,125,000 $3,375,000
$156,150
$577,500
$75,000
$470,000 $0
$815,000 $45,000 $0
$934,000 $0
$670,000 $0
TBD $500,000 $93,750 $281,250
$250,000 $0 $0
$ 370,000 $0
$ 125,000 $0
$ 80,000 $0
$ 575,000 $2,889,000 $45,000 $250,000 $16,906,150 $2,078,500 $5,344,000
$3,172,464 $0
$1,501,920
$0 $0
$0 $0
$0 $0
$0
$645,160
$72,500 $72,500
TBD $107,250 $542,750
TBD $270,000 $270,000
TBD $113,900 $0
$0 $0 $0 $0 $5,883,194 $615,250 $270,000
$575,000 $2,889,000 $45,000 $250,000 $22,789,344 $2,693,750 $5,614,000
$6,645,500 $0
$427,500
$1,346,250 $0
$20,896,000
$552,000
$29,867,250
$575,000 $2,889,000 $45,000 $250,000 $52,656,594 $2,693,750 $5,614,000
Amount Subject to Fee Credit
Fee Credit and Reimbursement
Agreement Status
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CITY OF SAN LUIS OBISPO
Avila Ranch Community Facilities District No. 1-2017
OFFICIAL BALLOT
SPECIAL TAX ELECTION
This ballot is for a special, landowner voter election. You must return this ballot in the
enclosed postage paid envelope to the office of the City Clerk of the City of San Luis Obispo no
later than the hour of 6:00 p.m. on October 27, 2011, either by mail or in person. The Clerk’s office
is located at 990 Palm Drive San Luis Obispo, CA].
To vote, mark a cross (X) on the voting line after the word “YES” or after the word “NO”.
All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the
ballot void.
If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of San
Luis Obispo and obtain another.
BALLOT MEASURE:
Shall a special tax, as specified in the Rate and Method of Apportionment (Attachment 1
of Exhibit A) to the Resolution of Formation payable solely from lands within the boundary
of Avila Ranch Community Facilities District as shown on Exhibit C of the Resolution of
Intention be levied annually, commencing in the District’s first fiscal year 2018-19
YES: __________
NO: __________
The property that is the
subject of this Ballot is
identified as Avila Ranch,
County Assessor Parcel
No(s):
053-259-004
053-259-005
053-259-006
Total Acreage: [ ]
Number of votes: 1
The name of the landowner voter of record of
such property and the signor of the Ballot is:
___________________________________
(PRINT VOTER NAME)
Signature:
____________________________
____________________________
____________________________
Address: _____________________________
_____________________________
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ADDENDUM TO THE FINAL ENVIRONMENTAL IMPACT REPORT
FOR THE AVILA RANCH PROJECT
OCTOBER 24, 2017
A. INTRODUCTION
This document is an Addendum to the certified Final Environmental Impact Report (“Final
EIR” or “EIR”) prepared for the Avila Ranch Project (State Clearinghouse Number
2015081034). The Final EIR was certified by the lead agency, the City of San Luis Obispo, on
September 19, 2017 (see Resolution in the Council Agenda Report of September 19, 2017).
The Addendum is intended to update the existing CEQA documentation as appropriate to
address the formation of a Community Facilities District (CFD), a funding mechanism
intended to implement development under the Avila Ranch project. Because the approved
project has not changed, and there are no new significant impacts as a result of the
formation of the CFD, an Addendum is the appropriate CEQA document to address the
updated project.
B. ADDENDUM REQUIREMENTS
The Addendum has been prepared in accordance with the relevant provisions of the
California Environmental Quality Act (CEQA) of 1970 (as amended) and the State CEQA
Guidelines as implemented by the City of San Luis Obispo. According to §15164(b) of the
State CEQA Guidelines, an Addendum to an EIR is the appropriate environmental document
in instances when “only minor technical changes or additions are necessary or none of the
conditions described in Section 15262 calling for the preparation of a subsequent EIR have
occurred”. Section 15162(a) of the State CEQA Guidelines states that no subsequent EIR
shall be prepared for a project unless the lead agency determines, on the basis of
substantial evidence in the light of the whole record, one or more of the following:
(1) Substantial changes are proposed in the project which will require major revisions
of the previous EIR or Negative Declaration due to the involvement of new significant
environmental effects or a substantial increase in the severity of previously identified
significant effects;
(2) Substantial changes occur with respect to the circumstances under which the
project is undertaken which will require major revisions of the previous EIR or
Negative Declaration due to the involvement of new significant environmental
effects or a substantial increase in the severity of previously identified significant
effects; or
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(3) New information of substantial importance, which was not known and could not
have been known with the exercise of reasonable diligence at the time the previous
EIR was certified as complete or the Negative Declaration was adopted, shows any of
the following:
(A) The project will have one or more significant effects not discussed in the
previous EIR or negative declaration;
(B) Significant effects previously examined will be substantially more severe
than shown in the previous EIR;
(C) Mitigation measures or alternatives previously found not to be feasible
would in fact be feasible, and would substantially reduce one or more
significant effects of the project, but the project proponents decline to adopt
the mitigation measure or alternative; or
(D) Mitigation measures or alternatives which are considerably different from
those analyzed in the previous EIR would substantially reduce one or more
significant effects on the environment, but the project proponents decline to
adopt the mitigation measure or alternative.
This Addendum does not require circulation because it does not provide significant new
information that changes the certified Final EIR in a way that deprives the public of a
meaningful opportunity to comment upon a substantial adverse environmental effect of the
project or a feasible way to mitigate or avoid such an effect.
This Addendum includes this introduction, a description of the proposed project, and a
discussion of the impacts for all environmental issue areas listed in Appendix G of the State
CEQA Guidelines. The originally certified Final EIR is available for reference online at the
following location: https://tinyurl.com/ydx3d52r. The City shall consider this Addendum
with the certified Final EIR as part of the approval of the updated project.
C. PREVIOUS CEQA DOCUMENTATION
The Avila Ranch Project was analyzed in an Initial Study prepared pursuant to CEQA
Guidelines Section 15063. Based on this analysis, a Draft EIR was prepared and circulated
for public review in accordance with CEQA requirements. The extended 55-day public
review period began on November 23, 2016 and ended on January 18, 2017. Portions of
the document relating to energy use were subsequently recirculated for additional public
review from February 21 to April 7, 2017. Public comments received during these review
periods, including testimony from public meetings related to the Draft EIR during these
review periods, were responded to in a Final EIR. In some cases, the Final EIR include d
minor revisions from the Draft EIR that resulted from public input received. The City Council
certified the Final EIR on September 19, 2017.
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A mitigation monitoring program was included in the certified Final EIR. Mitigation
measures will be included in the project design and implementation.
A Notice of Determination (NOD) pursuant to CEQA Guidelines Section 15075 was filed on
September 20, 2017, following project approval. This began a 30-day period during which
any potential court challenges to the project could have been filed. However, no challenges
were filed during that time, and the statute of limitations for court challenges related to the
project based on the CEQA documentation expired (CEQA Guidelines Section 15075(g)).
The CEQA process for the originally approved project was completed at that time.
D. UPDATED PROJECT ELEMENTS
The following summarizes the key project elements covered by the CEQA documentation
for this project, including both the certified Final EIR and this Addendum.
The updated project includes the formation and implementation of a Community Facilities
District (CFD), which is a financing mechanism that would implement a portion of the
development anticipated under the Avila Ranch project. The following discussion
summarizes the key aspects of the CFD, including its formation , purpose, and
implementation. Please refer to the October 24, 2017, Council Agenda Report for
additional details and discussion.
1. Background
The City Council adopted the Avila Ranch Community Facilities District (CFD) Resolution of
Formation at its September 19, 2017, meeting. This action followed preparation of the
proposed CFD as part of the Entitlement Documents that include the Final Environmental
Impact Report, the Development Plan, the Subdivision Map, and the Development
Agreement. Prior to preparation of the CFD the City Council, as part of the 2017-2019
Financial Plan, included new financial policies that establish a framework for land-secured
special tax financing.
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. The
levy of any special tax and any related bond issuance is subject to voter approval, if the area
is inhabited approval by two-thirds of the voters in the area is required. If fewer than 12
voters are located in the area, approval by the landowners is required (the Avila Ranch area
currently has no residential uses).
The owners and developers of the Avila Ranch property have requested and the City has
agreed to consider formation of a Community Facilities District (CFD), subject to Council
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action on the Avila Ranch entitlement documents. Such a CFD, allows for the levy of a
special tax on real property located within the designated boundary of the CFD for a range
of purposes including funding municipal services, local area maintenance, and infrastru cture.
It is common for the special taxes to be used to service municipal bonds issued for the CFD
to fund new development-related infrastructure. The Avila Ranch CFD, as proposed, will be
used to fund Citywide services affected by the new development, maintenance of local area
public facilities, and reimbursing the Developer for funding advances or construction of key
infrastructure items (over and above the Project’s demonstrated “fair share” of such
infrastructure costs.
2. Technical Specification of CFD
As part of its approval of the Avila Ranch CFD Resolution of Intention, the City Council
specified and approved the following technical aspects as documented in the Rate and
Method of Apportionment. The key aspects are summarized below, and discussed in
greater detail in the October 24, 2017, Council Agenda Report :
• Funding Capacity. The funding capacity of a CFD is based upon the type and amount
of development in the boundary of the CFD upon which the special tax is levied and
the amount of the tax per parcel. Special taxes levied as part of a CFD must be
clearly specified by a “rate and method of apportionment” which defines the
amount of the tax levied on each parcel and how the amount may be increased
(indexed) over time to account for any inflationary cost increases. Generally, and as
reflected in the City’s adopted policy, CFD special taxes are limited to a fraction of
the 1 percent property tax allowed under Article 13 A of the State Constitution. The
funding capacity of the Avila Ranch Project, taking a ccount of the market value of
development being created, the existing general and special taxes, and the City’s
established special tax “cap” of 1.8 percent is estimated to be approximately $2.9
million annually at full buildout of the project. Given market conditions and
maximum equivalent HOA rates in the community of $200 per month, and market
considerations, and the significant amount of smaller and multifamily units the
aggregate tax burden on residential units may limit capacity likely to be below thi s
maximum, resulting in a funding capacity at $1.7 million per year at full buildout of
the project. The City Council determined that the Special Tax schedule was
appropriate.
• Purpose of the Special Tax. The Rate and Method of Apportionment (RMA)
specifies the special tax to be levied as part of the Avila Ranch Community Facilities
District (CFD). In this case, the special tax will fund local area maintenance costs;
provide for fiscal mitigation (City and County) and serve as a source of
reimbursement funding if needed. Administrative costs are also included. Detailed
analysis of public service costs, including the need for fiscal mitigation and local area
facilities maintenance has been conducted as part of ongoing staff work and
negotiations with the Avila Ranch Developer. The funding components that have
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resulted from this analysis include:
a. Citywide Services: $230,000
b. Local Area Maintenance: $1.2 million
c. County Services: $88,000
d. Capital reimbursement: (TBD)
e. CFD Administration: $20,000
• Components of the Special Tax. Because there are different reasons for including
each of the two components, there are different instructions in the RMA related to
each. The first component is for local area maintenance services and will be needed
indefinitely and can be adjusted if a new property tax sharing agreement with the
County is achieved that provides a greater share of property tax to the City. The
second component is for reimbursement of capital outlay by the Developer in excess
of fair share costs. The tax will only be levied through 2035-2036 and once
reimbursements will terminate. The City Council determined that a single CFD
addresses all objectives.
• Special Tax Rate Structure. Special property taxes are "parcel" taxes (a given rate
per parcel). Varying taxes by use or intensity requires a logical structure, often linked
to service demand (may not be ad valorem). Current special tax calculations
determined an "average" special tax for all units in Avila Ranch of $2,400 per year.
There are 4 residential prototypes: R-1 (7 DU/ac); R-2 (12 DU/ac; R-3 townhomes (20
DU/ac); and R-4, stacked flats (24 DU/ac). A "flat tax" rate could be set for all
residential uses based on the special tax revenue calculations; alternatively, a rate
sensitive to unit type (zoning designation or single family/multifamily) and size can
be established, based on a variable that is linked to service demand. Special taxes
can be charged on commercial uses to pay their proportional share of service costs.
There is a small amount (15,000 square feet) of commercial space planned for the
Avila Ranch neighborhood. Given the limited scale of the commercial uses the City
Council determined such uses be exempted from the special tax unless a change of
use is subsequently approved and to charge a vacant land tax until the parcel is
developed.
• Special Tax on Vacant Land. Special taxes can be levied on land that is designated
for development but not yet developed. Such taxes are charged to generate cash
flow to cover interim service costs or debt service before the developing area
subject to the special tax is fully developed. The combined cost of services funded by
the CFD may exceed the available tax revenues during the "buildout" period when
there will be a growing number of tax producing parcels. A tax on vacant land (paid
by the then-current owner of the vacant developable land) can be levied to cover
such costs. Analysis shows that significant maintenance cost will not emerge until
the related facilities are in place and service demand s emerge. The City Council
determined that a vacant land tax be levied at the time the Final Subdivision Map is
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approved and respective subdivision parcels are recorded.
• Special Tax Rate Structure, Prioritization. The RMA specify funding priorities for
special tax revenue. There are three components currently identified as specified
below: 1) "fiscal mitigation" for the lack of property tax from the area (both City and
some County); 2) special funding for local area maintenance and also eventual local
facilities replacement; and 3) funding for reimbursement of Developer funding
advances (e.g., the capital component). Given these components, the City Council
determined the priority for funding recommended is as follows: 1) funding for
reimbursement of Developer funding advances; 2) special funding for local area
maintenance; and 3) "fiscal mitigation" for the City.
• Exemption for Affordable Housing Units. Property owned by non-profit entities or
with price restrictions in the deed are not categorically exempted from special taxes.
The key policy exemption to be considered is an exemption on affordable housing
owned by non-profit entities. There are 67 affordable units proposed, 9% of total
units (35 for low income at 80% of median income, and 32 for moderate at 120% of
median income). Taxing affordable housing units will increase operating costs and
thus may decrease feasibility for the non-profit entities or the subsidies that they
can offer lower income households. Options include: 1) an exemption for the n on-
profit owned or deed restricted units; or 2) establishing a discounted special tax
reflecting benefits to the City of providing affordable housing units. The City Council
determined that a reduced special tax on affordable units, 50% of the lowest tax
rate on market rate residential units, be levied.
• Other Exemptions. Certain types of property ownership are categorically exempt
from special taxes (e.g., lands owned by government entities), others may be
exempted for policy reasons by the RMA. Little or no cost is expected from these
parcels. Exemptions include government owned property; property-owners’
association property (common areas); assessor’s parcels consisting of public or
utility easements; and property having conservation-oriented deed restrictions. The
City Council determined that these non-developed parcels be exempted from the
special tax.
• Indexing for Cost Increases Over Time. Special taxes are typically “indexed,”
increased over time to reflect inflationary cost increases as permitted by the Statute.
Without a “cost inflator” special taxes will diminish in value proportional to the rate
of inflation on the costs of providing municipal services. There are various “cost
indices” that track price inflation including the CPI, the CCI and the ENR construction
cost index. The publication American County and City also publishes a municipal cost
index that tracks regional increases in municipal service costs. The City Council
determined that the City apply a composite of these indices to change th e
component of special taxes used for City services from year-to-year. The special tax
component for infrastructure purposes is limited by the Statute to two percent per
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year.
• Property Tax Contingency. At the present time, the Avila Ranch area does not
generate any property taxes to the City due to the existing Property Tax Sharing
Agreement with the County; this is one of the reasons the CFD has been proposed. A
portion of the proposed Avila Ranch special tax is for "fiscal mitigation" linked to the
existing property tax agreement that yields no property tax to the City. In the event
that a portion of the property tax is provided to the City, the "fiscal mitigation"
portion of the special tax could be reduced. It is possible that at some future date
the Property Tax Sharing Agreement with the County will be amended providing
new revenue to the City. The Rate and Method of Apportionment could include a
clause that provided for a reduction in the overall special tax proportional any
property tax revenue received by the City. Alternatively, the Rate and Method of
Apportionment need not contain such a provision. The City Council determined that
a provision to reduce the special taxes proportional to any property tax received as a
result of a new Property Tax Sharing Agreement with the County.
• Duration of the Special Tax. The Rate and Method must indicate the duration of
the special tax. The Rate and Method must specify the duration of the special tax.
Special taxes that provide a source of debt service on CFD municipal bonds (or other
capital expenditure) sunset when debt is retired. The City Council determined that
an “indefinite” duration for the services portion of the special tax, and that the
reimbursement component will be retired when reimbursement is completed
(estimated to be no later than 2035/36).
• Special Tax Accounts and Allocation. The special tax requirement has been
calculated based on three separate cost components: 1) "fiscal mitigation" for the
lack of property tax from the area (both City and some County); 2) special funding
for local area maintenance and also eventual local facilities replacement; and 3)
funding for reimbursement of Developer funding advances (e.g., the capital
component). The City Council determined that individual trust accounts be
established for the three funding components along with terms that specify funds
annually appropriated on a “cost-applied” basis.
E. UPDATED ENVIRONMENTAL IMPACT ANALYSIS
Implementation of the CFD would not change or alter the approved Avila Ranch
development pattern in any way. The funds raised through the CFD would facilitate the
prescribed development as set forth in the various project entitlements, including the
approved General Plan Amendment, Airport Area Specific Plan Amendment,
Development Plan, and Vesting Tentative Tract Map. The CFD would also allow the
development to occur within the framework of the approved phasing schedule set forth
in the Development Plan, but would not accelerate this schedule in any way. Because
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the CFD would not alter the approved development pattern or modify the phasing
schedule, it would not introduce new or modified environmental impacts that were not
already previously disclosed and analyzed through the certified Final EIR. All mitigation
measures prescribed for the approved development project would still apply with the
implementation of the CFD, and no new mitigation measures would be required.
F. DETERMINATION
In accordance with Section 15164 of the CEQA Guidelines, th e City of San Luis Obispo
(City) has determined that this Addendum to the Avila Ranch Project Final EIR is
necessary to document changes or additions that have occurred in the project
description since the EIR was originally certified. The City has reviewed and considered
the information contained in this Addendum in it s consideration of the certified EIR and
finds that the preparation of subsequent CEQA analysis that would require public
circulation is not necessary.
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Avila Ranch Community Development Plan175 Venture DrivePublic Hearing for the Avila Ranch Community Facilities DistrictOctober 24, 2017Applicant: Avila Ranch, LLCRepresentative: Stephen Peck
RecommendationApprove the Avila Ranch Resolution of FormationSet the date for the required (landowner) election for October 26, 20172
Community Facilities District Definition3Community Facility Districts (CFDs) were enabled by Community Facilities Act of 1982CFDs allow local jurisdictions to levy a special tax to fund specified municipal services and infrastructure improvementsSpecial taxes are subject to Proposition 218 (two-thirds voter approval or, in unoccupied areas, landowner approval)CFDs widely used by local jurisdictions during past 30 years in California No CFDs previously formed in San Luis Obispo
City CFD Policy and Approach4City has adopted CFD Policies and Procedures that guide CFD formationKey policy establishes a “maximum aggregate property tax rate” of 1.8 percent of assessed valuation Tax rate includes the 1.0 percent base rate established by Proposition 13 plus authorized overrides (e.g., general obligation bonds) and other assessments or special taxesOther CFDs may be formed subsequent to the Avila Ranch CFD in other developing portions of the City
Summary of Infrastructure Funding5Summary of Infrastructure FundingType of InfrastructureTotal Project Costs [1] Avila Ranch Pro Rata Share Total Cost of Projects Built by Avila Ranch Additional Mitigation or Impact Fees Being Paid Amount of Potential Private Reimbursement Amount of Potential Impact Fee Credit for Built Projects Final Out of Pocket for Avila Ranch Transportation $36,804,884 $17,622,154 $20,796,500 $5,883,194 ($561,350) ($3,759,000) $22,359,344 Parks $6,645,500 $6,645,500 $6,645,500 $6,645,500 Water and Sewer $427,500 $427,500 $427,500 $427,500 Public Safety $1,346,250 $1,346,250 $1,346,250 $1,346,250 Intract Improvements $20,896,000 $20,896,000 $20,896,000 $20,896,000 Offsite Improvements $552,000 $552,000 $552,000 $552,000 Total Infrastructure Expenses $66,672,134 $47,489,404 $50,663,750 $5,883,194 ($561,350) ($3,759,000) $52,226,594
Avila Ranch CFD Purpose6No City property tax accrues in Avila Ranch area due to Property Tax Exchange Agreement with CountyAvila Ranch Fiscal Analysis indicated a recurring “fiscal deficit” (costs exceeding revenues) largely due to no property taxThe Avila Ranch Development Plan provides a high standard for local infrastructure and facilities that require maintenance and over time, replacementDeveloper funding advances for infrastructure above “fair share” cost allocation subject to reimbursement which CFD can provide
Proposed Special Tax7No. of Services Infrastructure Maximum AnnualLand Use Category Units Special Tax Special Tax Special Tax[1] [2] [3] [4]Single Family Residential - ≥ 1,500 Sq. Ft. 322 $2,749.80 $300.00 $3,049.80Single Family Residential - <1,500 Sq. Ft. 76 $1,832.86 $200.00 $2,032.86Multifamily Residential - ≥ 1,500 Sq. Ft. 38 $2,749.80 $300.00 $3,049.80Multifamily Residential - < 1,500 Sq. Ft. 252 $1,832.86 $200.00 $2,032.86Affordable Multifamily Residential 32 $916.43 $100.00 $1,016.43Undeveloped Parcels [5]Other Land Uses $0.00 $0.00 $0.00Public and Deed Restricted Land $0.00 $0.00 $0.00"att1"[1] This Special Tax rate will be increased by the Services Special Tax Escalator in each Fiscal Year following the Base Year of FY 2018-19.[2] This Special Tax rate will be increased by the Infrastructure Special Tax Escalator in each Fiscal Year following the Base Year of FY 2018-19.[3] This Special Tax may be collected in each Fiscal Year through FY 2035-36. This Special Tax will no longer be collectedfollowing FY 2035-36.[4] Beginning with FY 2035-36, the Maximum Annual Special Tax will be equal to the Services Special Tax as the Infrastructure Special Tax will no longer be collected beyond FY 2035-36.[5] Undeveloped Parcels are Final Map Parcels without a Building Permit.
CFD Formation8Proposed special tax based upon detailed technical analysis of service and infrastructure costs as part of Avila Ranch Financing PlanHOA fees for single family detached, non-condo projects in the area are $600-$1,200/year range, whereas the HOA fees for condo projects with common area are in the $2,400-$3,000/year rangeWillingness to form CFD part of agreement reached with Project Applicant as reflected in Development AgreementCouncil initiated formation of Community Facilities District 2017-1 Avila Ranch (Services) by adoption of Resolution of Intention, on September 19, 2017Formation will becomes official following adoption of Resolution of Formation, and positive outcome of landowner election
CFD Next Steps9Following certification of the election results the Council must initiate adoption of an Ordinance establishing the Avila Ranch special taxes (scheduled for the November 7thCity Council meeting)The Ordinance will be adopted following the second reading (scheduled for the November 21thCity Council meeting) Actual Special Tax schedule adopted by Resolution of the City Council each fiscal year (prior to August 10th)First fiscal year special tax is authorized is FY 2018/19
RecommendationApprove the Avila Ranch Resolution of FormationSet the date for the required (landowner) election for October 26, 201710