HomeMy WebLinkAbout04-16-2019 Item 07, Ordinance Adoption - San Luis Ranch Community Facilities District no 2019-1 tax Department Name: Community Development
Cost Center: 4003
For Agenda of: April 16, 2019
Placement: Consent
Estimated Time: N/A
FROM: Michael Codron, Community Development Director
SUBJECT: ADOPTION OF AN ORDINANCE APPROVING A SPECIAL TAX TO FUND
INFRASTRUCTURE FOR THE ESTABLISHMENT OF THE SAN LUIS
RANCH COMMUNITY FACILITIES DISTRICT NO. 2019-1.
RECOMMENDATION
Adopt an Ordinance (Attachment A) establishing the San Luis Ranch Community Facilities
District (CFD) Special Tax
DISCUSSION
The approved San Luis Ranch Specific Plan allows for a variety of residential and non-
residential development on 131 acres located generally between Madonna Road and U.S.
Highway 101, south of Dalidio Drive, and is identified by assessor’s parcel number (APN) 067 -
121-022. The Specific Plan was approved on July 18, 2017. The Development Agreement and
an amended Specific Plan that provides the basis for the formation of the Community Facilities
District (CFD), was approved by the City Council on July 17, 2018.
The owners and developers of the San Luis Ranch property have requested, and the City has
agreed, to consider formation of a CFD, as reflected in the San Luis Ranch entitlement
documents. On February 19, 2019, the City Council adopted a Resolution of Intention, which is
the first step in the process to form a CFD. On April 2, 2019, the City Council voted
unanimously to introduce an ordinance advancing the formation of the CFD. The ordinance
authorizes the levy of a special tax on real property located within the designated boundary of the
CFD for a range of purposes including funding reimbursement of investments made by the
developer for regional transportation infrastructure and utility improvements. It is common for
the special taxes to be used to service munic ipal bonds issued to fund new development -related
infrastructure. The Ordinance will become effective 30 days after its adoption.
Policy Context
The San Luis Ranch Specific Plan and related entitlements are consistent with the 2014 Land
Use Element update.
Public Engagement
On February19, 2019, the City Council held a public hearing regarding the potential formation of
a CFD, after which it adopted a Resolution of Intention to form a CFD.
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Item 7
Next Steps in the CFD Formation Process
Upon adoption of the CFD Special Tax Ordinance all steps in the formation of the CFD will be
completed.
Within 15 days of adoption of the Special Tax Ordinance the City Clerk is obligated by the
Statute to post the Ordinance with the names of Council members voting for and agains t the
Ordinance. Within 15 days of the special election, the Clerk will prepare and record a Notice of
Special Tax Lien with the County Recorder.
ENVIRONMENTAL REVIEW
The formation and implementation of the CFD itself may be considered Categorically Exem pt
under CEQA, based on Section 15306 of the CEQA Guidelines. This provision of CEQA
addresses actions such as “information gathering”, specifically as they relate to “basic data
collection” or “research activities which do not result in a serious or major disturbance to an
environmental resource. These may be strictly for information gathering purposes, or as part of
a study leading to an action which a public agency has not yet approved, adopted, or funded.”
In this case, the CFD represents a mechanism that implements research and data collected with
respect to project financing and implements development that has already been evaluated under
CEQA and previously approved. No further environmental impacts are anticipated as a result of
the CFD. The CFD is also Statutorily Exempt from CEQA as part of “an ongoing project”, as
defined in Section 15261 of the CEQA Guidelines.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2019
Funding Identified: Yes
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current Funding
Request
Remaining
Balance
Annual
Ongoing Cost
General Fund
State
Federal
Fees $60,690 $0 $0 Ongoing
administrative
costs funded
through special
tax proceeds.
Other:
Total:
$60,690
$0
$0 $60,690
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Item 7
There will be no net fiscal impact related to forming the CFD. While there will be City costs
involved in establishing and administering the San Luis Ranch CFD, these costs can be funded
by CFD special tax proceeds. All consultant costs associated with the formation of the CFD are
paid for by the developer through reimbursement agreements. The City also charges a 30% fee
on developer reimbursement agreements to cover the City’s administration costs. The financial
analysis conducted for the formation process has considered and budgeted these costs.
ALTERNATIVES
1. Do not adopt the Ordinance. The City Council could choose not to adopt the Special Tax
Ordinance, in which case the CFD process is not completed. In this case, the project will not
move forward without identifying and implementing an alternative financing mechanism to
provide for needed public infrastructure that is a prerequisite for development under the
approved Specific Plan. This action would also impair the ability to build the Prado Road
Interchange in the near future, since that project depends in part on fees generated by the
approved project.
2. Direct modifications and continue the Hearing to a Date Certain. The City Council may
continue the hearing to a date certain if it feels additional technical informa tion is needed to
complete the CFD process. If additional information is needed, direction should be provided
to staff so that it can be presented on that date.
Attachments:
a - Ordinance Approving a Special Tax to Fund Infrastructure
Packet Pg. 51
Item 7
R 1661
ORDINANCE NO. 1661 (2019 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, LEVYING SPECIAL TAXES WITHIN THE CITY
OF SAN LUIS OBISPO COMMUNITY FACILITIES DISTRICT NO. 2019-
1 (SAN LUIS RANCH)
WHEREAS, on February 19, 2019, the City Council (the “City Council”) of the City of
San Luis Obispo (the “City”), pursuant to the Mello -Roos Community Facilities Act of 1982 (the
“Act”), adopted a resolution entitled “A Resolution of the City Council of the City of San Luis
Obispo, California of Intention to Establish a Community Facilities District and to Authorize the
Levy of Special Taxes” stating its intention to establish City of San Luis Obispo Community
Facilities District No. 2019-1 (San Luis Ranch) (the “Community Facilities District”) and to
finance certain public facilities (the “Facilities”);
WHEREAS, on April 2, 2019, the City Co uncil held a noticed public hearing on the
establishment of the Community Facilities District, as required by the Act;
WHEREAS, subsequent to the close of said hearing, the City Council adopted resolutions
entitled “A Resolution of the City Council of the City of San Luis Obispo, California of Formation
of the City of San Luis Obispo Community Facilities District No. 2019 -1 (San Luis Ranch),
Authorizing the Levy of a Special Tax within the Community Facilities District and Establishing
an Appropriations Limit for the Community Facilities District” (the “Resolution of Formation”),
“A Resolution of the City Council of the City of San Luis Obispo, California Deeming it Necessary
to Incur Bonded Indebtedness within City of San Luis Obispo Community Facilities D istrict No.
2019-1 (San Luis Ranch)” and “A Resolution of the City Council of the City of San Luis Obispo,
California Calling Special Election for City of San Luis Obispo Community Facilities District No.
2019-1 (San Luis Ranch),” which resolutions established the Community Facilities District,
authorized the levy of a special tax within the Community Facilities District and called an election
within the Community Facilities District on the proposition of incurring indebtedness, levying a
special tax within the Community Facilities District and establishing an appropriations limit for
the Community Facilities District, respectively; and
WHEREAS, on April 2, 2019, an election was held in which the qualified electors of the
Community Facilities District appro ved said proposition by more than the two -thirds vote required
by the Act;
NOW, THEREFORE, BE IT ORDAINED, by the City Council of the City of San
Luis Obispo as follows:
SECTION 1. The City Council hereby authorizes and levies special taxes within the
Community Facilities District pursuant to Sections 53328 and 53340 of the Act, at the rate and in
accordance with the method of apportionment set forth in Exhibit B to the Resolution of Formation
(the “Rate and Method of Apportionment”). The special taxes are hereby levied commencing in
fiscal year 2019-20, and in each fiscal year thereafter until the last fiscal year in which such special
taxes are authorized to be levied pursuant to the Rate and Method of Apportionment.
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Item 7
Ordinance No. 1661 (2019 Series) Page 2
O 1661
SECTION 2. The City Council may, in accordance with subdivision (b) of Section 53340
of the Act, provide, by resolution, for the levy of the special tax in future tax years at the same rate
or at a lower rate than the rate provided by this Ordinance. In no event shall the special tax be
levied on any parcel within the Community Facilities District in excess of the maximum tax
specified therefor in the Rate and Method of Apportionment.
SECTION 3. The special tax shall be levied on all of the parcels in the Community
Facilities District, unless exempted by law or by the Rate and Method of Apportionment.
SECTION 4. The proceeds of the special tax shall only be used to pay, in whole or in
part, the cost of providing the Facilities and incidental expenses pursuant to the Act.
SECTION 5. The special tax shall 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 the case of delinquency as is provided for ad valorem taxes, unless another
procedure is adopted by the City Council.
SECTION 6. If for any reason any portion of this Ordinance is found to be invalid, or if
the special tax is found inapplicable to any particular parcel within the Community Facilities
District, by a court of competent jurisdiction, the balance of this Ordinance and the application of
the special tax to the remaining parcels within the Community Facilities District shall not be
affect ed.
This Ordinance shall take effect and shall be in force 30 days after the date of its adoption
and prior to the expiration of 15 days from the passage thereof shall be published at least once in
the New Times, a newspaper of general circulation, printed and published in the City of San Luis
Obispo, State of California, together with the names of the City Council members voting for and
against the same.
INTRODUCED on the 2nd day of April 2019, AND FINALLY ADOPTED by the
Council of the City of San Luis O bispo on ____ day of _____________, 2019, on the following
vote:
AYES:
NOES:
ABSENT:
______________________________
Mayor Heidi Harmon
ATTEST:
Teresa Purrington
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Item 7
Ordinance No. 1661 (2019 Series) Page 3
O 1661
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 _________________, 2019.
Teresa Purrington
City Clerk
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Item 7
RECEIVED
APR 15 2019
I SLO CITY CLERK
1010 Marsh St., San Luis Ob
(805) 546-8208 . FAX (8(
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE OF CALIFORNIA,
County of San Luis Obispo,
I am a citizen of the United States and a
resident of the county aforesaid; I am over the
age of eighteen years, and not a party interested
in the above entitled matter. I am the principal
clerk of the printer of the New Times, a
newspaper of general circulation, printed and
published weekly in the City of San Luis
Obispo, County of San Luis Obispo, and which
has been adjudged a newspaper of general
circulation by the Superior Court of the County
of San Luis Obispo, State of California, under
the date of February 5, 1993, Case number
CV72789: that notice of which the annexed
is a printed copy (set in type not smaller than
nonpareil), has been published in each regular
and entire issue of said newspaper and not in
any supplement thereof on the following dates,
to -wit:
A'0 I I
in the year 2W 9.
I certify (or declare) under the the penalty of
perjury that the foregoing is true and correct.
Dated at San Luis ON , Cafif rnia, this
day_ i l vI 1 1 _2019.
v
1 & �: -
Patricia Horton, New Times Legals
Admin M `,e ,I/ -WN IC Adnn/NTNIC Offlu/131 IS INESSII' Mie Noliecsil'i ail oP I'�ib
Proof
ORDINANCE NO. 1661(2019 Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SAN LUIS OBISPO. CALIFORNIA, ADVANCING THE
FORMATION OF THE SAN LUIS RANCH COMMUNITY
FACILITIES DISTRICT BY LEVYING SPECIAL TAXES
WITHIN THE CITY OF SAN LUIS OBISPO COMMUNITY
FACILITIES DISTRICT NO. 2019-1 (SANI LUIS RANCH)
AS REPRESENTED IN THE STAFF REPORT AND
ATTACHMENTS DATED APRIL $ 2019
NOTICE IS HEREBY GIVEN that the City Council of
the City of San Luis Obispo, California, at its Regular
Meeting of April 2, 2019, introduced the above
titled ordinance upon a motion by Council Member
Gomez, second by Council Member Christianson,
and on the following roll call vote:
AYES: Council Members Aaron Gomez, Carlyn
Christianson, Erica -Stewart,
Vice Mayor Andy Pease, and Mayor Heidi Harmon
NOES: None
bdinance No. 1661 (2019 Series) - The approved
San Luis Ranch Specific Plan allows for a variety
of residential and non-residential development on
191 acres located generally between Madonna
Road and U.S. Highway 101, south of Deli did Drive,
and is identified by assessor's parcel number (APN)
067-121.022. The Specific Plan was approved on
July 18,2017. The Development Agreement and an
amended Specific Plan that provides the basis for
the formation of the Community Faellities District
(CFD), was approved by the City Council on July 17,
2018.
The owners and developers of the San Luis Ranch
property have requested, and the City has agreed, to
consider formation of a CFD, as reflected in the San
Luis Ranch entitlement documents. On February
19, 2019, the City Council adopted a Resolution
of Intention, which is the first step in the process
to form a CFD. On April 2, the City Council voted
unanimously to introduce an ordinance advancing
the formation of the CFD. The ordinance authorizes
the levy of a special tax on real property located
,-within the designated boundary of the CFD for a
range of purposes including funding reimbursement
of .investments made by the developer for
regional transportation infrastructure and utility
improvements. It is common for the special taxes to
be used to service municipal bonds issued to fund
new development -related infrastructure.
! NOTICE IS HEREBY FURTHER GIVEN that the City
t;ouncil of the City of San Luis Obispo will consider
adopting the aforementioned Ordinance at its
Regular Meeting of April 16, 2019 at6:00 p.m., which
will be held in the Council Chamber, located at 990
Palm Street, San Luis Obispo, California.
Copies of the complete ordinance are available in
the City Clerk's Office in City Hall and online atwww.
1 slocity.artl- For more information, contact Michael
I Codron, 781-7187.
Teresa Purrington
City Clerk
April 11, 2019