HomeMy WebLinkAbout11-13-2018 Item 6 Annual Monitoring of the Avila Ranch Development Agreement and Community Facilities District
Meeting Date: 11/13/2018
FROM: Michael Codron, Community Development Director
Prepared By: John Rickenbach, Contract Planner
Tyler Corey, Principal Planner
SUBJECT: ANNUAL MONITORING OF THE AVILA RANCH DEVELOPMENT
AGREEMENT AND COMMUNITY FACILITIES DISTRICT.
RECOMMENDATION
Receive and file the annual monitoring report for the Avila Ranch Development Agreement and
Community Facilities District.
DISCUSSION
Background
On September 19, 2017, the City Council approved the Development Agreement (DA) between
the City and Avila Ranch, LLC. On October 24, 2017, the City Council approved the Avila
Ranch Community Facilities District (CFD) Resolution of Formation. Both the DA and CFD
require annual monitoring and reporting of activities. Since no activity has occurred on the
project, this report serves as the monitoring report. Once activity begins (anticipated in the next
year) a formal comprehensive monitoring report for the DA and CFD will be provided.
Development Agreement
Implementation of the Avila Ranch project requires substantial new infrastructure to support new
development, most of which is the responsibility of the developer. The approved Development
Agreement (DA) for the project describes the developer’s responsibilities in that regard. Section
5.05.4 of the DA also requires that a financing mechanism be established to ensure that there is
no shortfall to the City’s General Fund as public improvements are made and need to be
maintained by the City in the future. Section 5.05.4(c) of the DA establishes that the effect on
the City’s General Fund be monitored annually relative to possible City expenditures needed to
make up any shortfalls in the construction of various public improvements that are the
responsibility of the developer. Section 5.04.2(i) of the DA establishes that Avila Ranch will pay
the City reasonable staff and consultant time associated with monitoring and compliance of the
Mitigation Monitoring and Reporting Program, the DA, the financing mechanism (i.e. the CFD)
and all other administrative tasks associated with the adoption and implementation of the DA and
project. This provision provides the City with an ongoing funding source that will be used to
ensure the project is developed, operated and maintained consistent with all applicable
requirements.
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Community Facilities District
A Mello-Roos CFD was established and approved on October 24, 2017 (“Avila Ranch
Community Facilities District No. 2017-1”). The CFD is the mechanism that facilitates the
collection of revenue as development occurs, and that revenue is used to construct various public
improvements. Section 10 (ii) of the CFD resolution also has an annual reporting requirement,
similar to the one included in the Development Agreement. The City anticipates that the first
levy will be made to the CFD in fiscal year 2020-21 with occupancy of the first dwelling unit in
the project.
Annual Revenues and Expenditures
For the period October 24, 2017 through October 23, 2018, no revenue was collected through the
CFD because no development has occurred. Similarly, no public improvements have been made
during that time, so no funds have been expended in that regard, either by the developer or the
City. Therefore, there has been no fiscal impact to the City’s General Fund for the period in
question.
ENVIRONMENTAL REVIEW
Annual monitoring of the Avila Ranch DA and CFD are categorically exempt from CEQA
pursuant to CEQA Guidelines Section 15306 (Information Collection) and that the action
otherwise qualifies for a “general rule” exemption pursuant to Section 15061(b)(3), which covers
activities “where it can be seen with certainty that there is no possibility that the activity in
question may have a significant effect on the environment.” Annual monitoring does not change
any aspect of the approved Avila Ranch project, nor does it introduce the potential for any new
environmental impacts. Under Section 15306, the Secretary for the California Natural Resources
Agency has concluded that “basic data collection, research…and resource evaluation activities
which do not result in a serious or major disturbance to an environmental resource” are exempt
from CEQA. Therefore, the proposed action is categorically exempt from further analysis under
CEQA.
FISCAL IMPACT
No revenue has been collected through the CFD because no development has occurred.
Similarly, no public improvements have been made, so no funds have been expended.
Therefore, there is no fiscal impact to the City’s General Fund.
ALTERNATIVES
1. Provide direction to staff regarding the annual monitoring report for the Avila ranch DA and
CFD and continue the item to a future meeting.
2. Reject the annual monitoring report for the Avila Ranch DA and CFD. This is not
recommended since annual monitoring is a requirement of the DA and CFD.
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