REPORT TO THE CITY COUNCIL March 16, 2017 FROM: SCOTT L. MOZIER, PE, Director Public Works Department BY: ANDREW J. BENELLI, PE, City Engineer/Assistant Director Public Works Department, Traffic and Engineering Services Division ANN LILLIE, Senior Engineering Technician Public Works Department, Traffic and Engineering Services Division SUBJECT ..Title HEARING to adopt resolutions and ordinance to annex territory and levy a special tax regarding City of Fresno Community District No. 9, Annexation No. 14 (Final Parcel Map No. 2012-06) (northwest corner of East Central and South Orange Avenues) (Council District 3) 1. ***RESOLUTION - Annexing Territory to Community Facilities District No. 9 and Authorizing the Levy of a Special Tax 2. ***RESOLUTION - Calling Special Mailed-Ballot Election 3. ***RESOLUTION - Declaring Election Results 4. ***BILL - (For introduction and adoption) - Levying a Special Tax for the Property Tax Year 2016-2017 and Future Tax Years Within and Relating to Community Facilities District No. 9, Annexation No. 14 ..Body RECOMMENDATIONS 1. Adopt Resolution Annexing Territory to Community Facilities District No. 9 and Authorizing the Levy of a Special Tax 2. Adopt Resolution Calling Special Mailed-Ballot Election 3. Adopt Resolution Declaring Election Results 4. Adopt Ordinance Levying a Special Tax for the Property Tax Year 2016-2017 and Future Tax Years Within and Relating to Community Facilities District No. 9, Annexation No. 14 EXECUTIVE SUMMARY On February 16, 2017, the Council of the City of Fresno ("Council") adopted Council Resolution No. 2017-45 with the intent to annex territory to Community Facilities District No. 9 ("CFD No. 9") at the request of the landowner of Final Parcel Map No. 2012-06. This is the noticed public hearing to consider annexing Final Parcel Map No. 2012-06 as Annexation No. 14 to CFD No. 9 to provide funding for the operation and reserves for maintenance ("Services") pertaining to the above ground infrastructure, including concrete curbs and gutters, sidewalks and curb ramps, local industrial street paving, and street lighting associated with the subdivision. The cost for Services totals $21,855.00 annually. If approved, the recommended resolutions and ordinance will levy a Special Tax on the properties in Final Parcel Map No. 2012-06 for identified Services. (See attached location map) BACKGROUND On December 16, 2008, the Council adopted Council Resolution No. 2008-351 forming CFD No. 9 to fund the Services for public improvements/areas that may benefit not only a particular subdivision or a portion of, but also the City of Fresno ("City") and the public at large, that serve a public purpose, and that are constructed or installed on public property or dedicated rights-of-way or easements. CFD No. 9 is to provide maintenance for certain regulatory required public improvements located within and adjacent to public streets on the perimeter of commercial, industrial and multi-family subdivisions as described and permitted by the City of Fresno Special Tax Financing law, Chapter 8, Division 1, Article 3 of the Fresno Municipal Code ("City Law") and the Mello-Roos Community Facilities Act of 1982 (Chapter 2.5, commencing with Section 53311, of Part 1, Division 2, Title 5 of the California Government Code). New commercial, industrial and multi-family subdivisions and parcel maps have different needs and standards than those of a standard single-family residential subdivision. Commercial, industrial and multi-family subdivisions are traditionally self-maintained with different proprietary requirements for landscaping, signage and general designs. CFD No. 9 is designed to accommodate these requirements by providing funding of services for certain required public improvements in the public rights-of-way along the perimeters of these developments. The landowner has petitioned the City to have Final Parcel Map No. 2012-06 annexed to CFD No. 9 to finance the Services pertaining to the above ground infrastructure, including concrete curbs and gutters, sidewalks and curb ramps, local industrial street paving, and street lighting associated with the subdivision. Pursuant to this petition, the Council adopted Council Resolution No. 2017-45, declared its intention to annex Final Parcel Map No. 2012-06 to CFD No. 9, and set the public hearing for formal consideration. Resolution No. 2017-45 also directed preparation of a District Report describing the Services and the costs of those services and this report is on file with the City Clerk of the City of Fresno. If adopted by the Council, the attached ordinance would levy the proposed total maximum special tax of $21,855.00 annually for fiscal year 2016-2017. The Maximum Special Tax will be adjusted annually upward by 3% plus the rise, if any, in the Construction Cost Index for the San Francisco Region. The levy of the special tax is subject to approval by the qualified electors through a special election. Two additional resolutions are attached for Council consideration pertaining to this special election. Today's public hearing has been duly noticed and the attached resolutions and ordinance have been approved as to form by the City Attorney's Office. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act Guidelines Section 15378 this hearing does not qualify as a "project" and is therefore exempt from the California Environmental Quality Act requirements. LOCAL PREFERENCE Local preference was not considered because this hearing does not include a bid or award of a construction or services contract. FISCAL IMPACT No City funds will be involved. All costs for services will be borne by the property owners within the subject territory. Attachments: Location Map Resolutions (3) Ordinance