Item Coversheet

Agenda Item No: 21.






AGENDA REPORT

DATE:

September 7, 2021 

TO:

Mayor and City Council

FROM:

Stefan T. Chatwin, City Manager


SUBJECT:Public Hearing; and

Resolution 2021-227 of the City Council of the City of Fairfield Annexing Territory (Green Valley Corporate Park Building A) to Community Facilities District No. 2012-2 (Public Safety Services, Open Space Operation, and Park Maintenance) as Annexation No. 53, Authorizing the Levy of a Special Tax Within the Annexed Territory, and Submitting the Levy of a Special Tax to the Qualified Electors Thereof; and

Resolution 2021-228 of the City Council of the City of Fairfield Declaring the Results of a Special Annexation Election in Territory Annexed to Community Facilities District No. 2012-2 (Public Safety Services, Open Space Operation, and Park Maintenance), Determining the Validity of Prior Proceedings, and Directing Recording of Amended Notice of Special Tax Lien for City of Fairfield Community Facilities District No. 2012-2 (Public Safety Services, Open Space Operation, and Park Maintenance) Annexation No. 53 (Green Valley Corporate Park Building A)

RECOMMENDED ACTION 
Hold public hearing and adopt resolutions.
STATEMENT OF ISSUE 
The conditions of approval for the Green Valley Corporate Park Building A development requires that the property be annexed to Community Facilities District No. 2012-2 (“CFD 2012-2”). CFD 2012-2 was formed by the City of Fairfield (“City”) to provide funding for public safety services, open space operation, and park maintenance. A public hearing must be held on the question of whether to annex the property to CFD 2012-2 and, in the absence of a majority protest, the attached resolutions annex the territory to CFD 2012-2, authorize the levy of a special tax within the annexed territory subject to voter approval, call an election to allow the property owner to cast a ballot on the levy of the special tax, and declare the result of such election.
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 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 in the Fairfield area.

The property proposed for annexation is owned by Fairfield Industrial Holdings I, LLC and is located east of Business Center Drive, southwest of Suisun Valley Road and northwest of Interstate 80 within the boundaries of assessor’s parcel numbers 0148-540-250, 0148-540-260, and 0148-540-380 as depicted on Exhibit A. The development on the property will be an industrial building. Development of this property will change the property’s characteristics and manner in which the property will be used thereby creating a need for more services funded by CFD 2012-2.

The City contracts with Willdan Financial Services for the preparation of resolutions and the completion of balloting procedures for annexations to existing CFDs. 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 to a Mello-Roos community facilities district.

Council adopted Resolution No. 2021-147 on July 6, 2021, to declare its intention to annex the territory to CFD 2012-2, and set a public hearing for September 7, 2021. Following the public hearing, and in the absence of a majority protest and approval by the property owner, the adoption of the attached resolutions will annex the territory to CFD 2012-2, call and hold an election of the property owner within the annexed territory, declare the results of the special election, and authorize the levy of the special taxes within the annexed territory, thereby concluding the annexation process. Since the conditions of approval for the development require the territory to be annexed to CFD 2012-2 and Fairfield Industrial Holdings I, LLC is the sole owner of the parcels and the only elector qualified to vote in the special election, a majority protest regarding the annexation is not anticipated.

Once the annexation is complete, the annexed territory will be designated as Annexation No. 53. The property owner of Annexation No. 53 will be required to pay annual special taxes for CFD 2012-2, beginning in fiscal year 2021-22 as itemized on their property tax bill in accordance with the Rate and Method of Apportionment of Special Tax for CFD 2012-2.

FINANCIAL IMPACT
The anticipated annual revenue to be received by the City (CFD 2012-2 Fund 332) for this annexation is estimated to be $12,907.49, which is based on fiscal year 2021-2022 maximum special tax rate for industrial use properties. 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.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION 
N/A
ALTERNATIVE ACTION 
If Council has any questions concerning the required annexation of this development, this item may be rescheduled until the next 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.
STAFF CONTACT 
Chris Lewis, Management Analyst
(707) 428-7089
clewis@fairfield.ca.gov

COORDINATED WITH 
N/A
ATTACHMENTS:
Description
Attachment 1: Exhibit A - Boundary Map
Attachment 2: Proposed Resolution - Annexing Territory
Attachment 3: Exhibit A - Ballot
Attachment 4: Proposed Resolution - Declaring Results
Attachment 5: Exhibit A - Declaring Results
REVIEWERS:
ReviewerActionDate
Panganiban, RyanApproved8/23/2021 - 8:31 PM
Kaushal, PaulApproved8/24/2021 - 12:43 AM
Alexander, AmberApproved8/24/2021 - 4:55 PM
Alexander, AmberApproved8/24/2021 - 4:55 PM