Item Coversheet

Agenda Item No: 13.






AGENDA REPORT

DATE:

November 19, 2019 

TO:

Mayor and City Council

FROM:

Sean P. Quinn, Interim City Manager

SUBJECT:Resolution 2019-265 of the City Council of the City of Fairfield Declaring Results of a Special Annexation Election, Determining Validity of Prior Proceedings, and Directing Recording of Amended Notice of Special Tax Lien, City of Fairfield Community Facilities District No. 2012-2 (Public Safety Services, Open Space Operation, and Park Maintenance) Annexation No. 44 (MidPen Housing)

RECOMMENDED ACTION 
Declare results of the Special Annexation Election and adopt resolution.
STATEMENT OF ISSUE 
The conditions of approval for the MidPen Housing development (Project) require it to annex into Community Facilities District No. 2012-2 (CFD 2012-2). The district was formed by the City of Fairfield (City) to provide funding for public safety services, open space operation and park maintenance. The adoption of this resolution will fulfill the final requirement of declaring the results of the Special Annexation Election and complete the annexation.
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 (City) would annex into this district. The special taxes collected from the property owners within the district are to be used for the funding of public safety services, open space operation, and park maintenance in the Fairfield area.

The Project proposed for annexation is owned by Fairfield Housing Authority and is located on Santa Monica Street. The Project includes the development of 72 affordable housing units. The boundary of the annexation includes the area within assessor’s parcel numbers 0037-340-010, 0037-053-560, 0037-053-700, and 0037-340-190 (as depicted on Exhibit A).

As part of the annexation process, the City contracts with Willdan Financial Services for the preparation of the necessary resolutions and balloting procedures for the annexation. 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.

Resolution No. 2019-224 was adopted on October 1, 2019, and set a public hearing for November 5, 2019. At the public hearing on November 5, 2019, Resolution 2019-264 was adopted which submits the levy of the special tax to the qualified electors. The companion Resolution 2019-265declaring the results of the special election could not be adopted due to an incomplete ballot. This is the final step in the annexation process; and since the conditions of approval for the development require it to annex into CFD 2012-2 and Fairfield Housing Authority owns the parcel, a majority protest of the annexation is not anticipated.

Once the annexation is complete, the property owners of the Project will be required to pay annual special taxes for CFD 2012-2, beginning in Fiscal Year 2020/2021 as itemized on their property tax bill in accordance with the rate set forth in the Rate and Method of Apportionment of Special Tax.

FINANCIAL IMPACT
The estimated annual revenue received by the City for the CFD 2012-2 Fund (Fund 332) will be $43,215.63, which is based on the maximum special tax rate for Fiscal Year 2019/2020 for high-density residential property for 72 units. No special tax will be charged to Affordable Residential Units, as established in the Rate and Method of Apportionment. Revenue of future high-density residential property will be based on the maximum special tax rate for FY 2019/20 of $600.21 per unit. The process for the annexation is funded by the developer and no General Fund monies are used for this effort.
CITY COUNCIL WORKPLAN 
Community Safety
 Community Infrastructure Quality of Life
Financial and Operational Sustainability Economic Development Travis Air Force Base

City Council Goal this item supports: 
Financial and Operational Sustainability
 

Project:
One-time item not recommended for including in the Workplan
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION 
N/A
ALTERNATIVE ACTION 
If the City Council has any questions concerning the required annexation of this development, the annexation may be rescheduled until the next City Council meeting so staff may 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 

Thomas Martian, Construction Manager

(707) 428-7478

tmartian@fairfield.ca.gov


COORDINATED WITH 
N/A
ATTACHMENTS:
Description
Proposed Resolution
Exhibit A - Declaring Results
REVIEWERS:
ReviewerActionDate
Panganiban, RyanApproved11/8/2019 - 11:42 AM
Kaushal, PaulApproved11/8/2019 - 12:23 PM
Henry, AliciaApproved11/8/2019 - 3:50 PM
Henry, AliciaApproved11/12/2019 - 5:27 PM