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AGENDA REPORT
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| | | | | | | | DATE:
| April 6, 2021
| TO:
| Mayor and City Council
| FROM:
| Stefan T. Chatwin, City Manager
| | SUBJECT: | Resolution 2021-66 of the City Council of the City of Fairfield Declaring Its Intention to Annex Territory (Three Sixty Storage Center) to the City of Fairfield Community Facilities District No. 2012-2 (Public Safety Services, Open Space Operation, and Park Maintenance) and to Authorize the Levy of Special Taxes Therein for Annexation No. 50 |
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| | | | | | | | | RECOMMENDED ACTION | | Adopt resolution. |
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| | | | | | | | | STATEMENT OF ISSUE | | The attached resolution will begin the proceedings for the annexation of a project known as Three Sixty Storage Center (the “Project”) into Community Facilities District 2012-2 (“CFD 2012-2”). The conditions of approval for this Project require it to annex into CFD 2012-2, which was established as an annexable district to provide funding to offset the increased cost for public safety services, open space operation, and park maintenance created by new development. |
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| | | | | | | | | DISCUSSION | By Resolution No. 2012-233, the City Council established CFD 2012-2, a Mello-Roos Community Facilities District with the intention that future development within the City of Fairfield (the “City”) would annex to this district. The special taxes collected from the property owners within the district are used to fund public safety services, open space operation, and park maintenance.
The Project proposed for annexation is owned by Horizon Drive LP and is located south of Horizon Drive and west of Clay Bank Road. Exhibit A depicts the annexation boundary to be within assessor’s parcel numbers 0168-320-450 and 0168-320-460. The Project includes the development of a self-storage facility.
Development of this property changes the characteristics of the undeveloped land. Once developed, this project will have intensified the use of the property, creating a need for more services funded by CFD 2012-2.
The City contracts with Willdan Financial Services for the preparation of the necessary resolutions and balloting procedures for the annexation process. This process is a specialty service that the City has contracted out since 1995 on an individual consultant services basis for each development requiring annexation into a Mello-Roos Community Facilities District.
Adoption of the Resolution of Intention is the first step to annex this development to CFD 2012-2. This will be the fiftieth annexation to the district. The Resolution also establishes May 18, 2021, as the public hearing date for the final consideration of the annexation of the property to CFD 2012-2. Once the annexation is complete, the property owner of the Project will be required to pay annual special taxes for CFD 2012-2, beginning in Fiscal Year 2021-2022 as itemized on their property tax bill in accordance with the rate set forth in the Rate and Method of Apportionment of Special Tax.
The CFD 2012-2 Rate and Method of Apportionment was established as part of the formation of the district and fixed Fiscal Year 2012-2013 as the base year for the annual special tax rate as shown in Exhibit B. Since the formation, assessments have increased based on a cost inflator allowed in the original formation documents. Exhibit C shows the current special tax rate for the district.
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| | | | | | | | | FINANCIAL IMPACT | | The annual revenue received by the City for the CFD 2012-2 Fund (Fund 332) is estimated to be $1,783.42 for the Project, which is based on Fiscal Year 2020-2021 maximum special tax rate for approximately 71,336 square feet of industrial development at the rate of $0.025 per net square foot of lot area. The CFD 2012-2 maximum special tax rates include an automatic annual CPI adjustment. The process for the annexation is funded by the developer and no General Fund monies are used for this effort. |
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| | | | | | | | | PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION | N/A
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| | | | | | | | | ALTERNATIVE ACTION | | If the City Council has any questions concerning the required annexation of this development, this item may be rescheduled until the next City Council meeting to allow staff to provide the necessary backup. However, if the annexation is not approved, the conditions of approval for this development would not be fulfilled and the development process would cease. |
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| | | | | | | | | STAFF CONTACT | Chris Lewis, Management Analyst
(707) 428-7089
clewis@fairfield.ca.gov
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| REVIEWERS: | | Reviewer | Action | Date | | Panganiban, Ryan | Approved | 3/22/2021 - 8:04 PM | | Kaushal, Paul | Approved | 3/22/2021 - 8:26 PM | | Alexander, Amber | Approved | 3/25/2021 - 5:42 PM | | Alexander, Amber | Approved | 3/25/2021 - 5:42 PM |
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