REPORT TO THE CITY COUNCIL June 11, 2015 FROM: SCOTT L. MOZIER, PE, Director Public Works Department THROUGH: ANDREW J. BENELLI, PE, City Engineer/Assistant Director Public Works Department, Traffic and Engineering Services Division BY: 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. 8 (Assessor's Parcel Numbers 440-220-037, 440-220-060 and 440-220-061) (commonly known as the "Fresno 40 Development") (the area bounded by N. Fresno Street, N. Friant Road, E. Audubon and the Sugarpine Trail) (Council District 6) 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 2015-2016 and Future Tax Years Within and Relating to Community Facilities District No. 9, Annexation No. 8, Assessor's Parcel Numbers 440-220-037, 440-220-060 and 440-220-061 ..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 2015-2016 and Future Tax Years Within and Relating to Community Facilities District No. 9, Annexation No. 8, Assessor's Parcel Numbers 440-220-037, 440-220-060 and 440-220-061 EXECUTIVE SUMMARY On May 14, 2015, the Council of the City of Fresno ("Council") adopted Council Resolution No. 2015-73 to annex territory to Community Facilities District No. 9 ("CFD No. 9") at the request of the landowner of Assessor's Parcel Numbers 440-220-037, 440-220-060 and 440-220-061. This is the noticed public hearing to consider annexing Assessor's Parcel Numbers 440-220-037, 440-220-060 and 440-220-061 to CFD No. 9 to provide funding for the operation and reserves for maintenance ("Services") pertaining to certain ground level infrastructure within the public easements associated with this development. Such facilities include, without limitation, concrete curbs and gutters, entrance median curbs, caps and pedestrian access walkways, trail, sidewalks and curb ramps, traffic signal and street lighting, and the Sugarpine Trail concrete trail connections, bench pads and benches. The total cost for these Services is $13,911 annually for fiscal year 2015-2016. If approved, the recommended resolutions and ordinance will levy a special tax on Assessor's Parcel Numbers 440-220-037, 440-220-060 and 440-220-061 for identified Services. BACKGROUND On December 16, 2008, the Council adopted Council Resolution No. 2008-351, forming CFD No. 9 to provide funding for 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). The landowner has petitioned the City to have the territory associated with Conditional Use Permit No. 2008-157, 2012-032 and 2014-121 (commonly known as the "Fresno 40 Development"), Assessor's Parcel Numbers 440-220-037, 440-220-060 and 440-220-061, annexed to CFD No. 9 to finance the Services pertaining to certain ground level infrastructure within the public easements associated with this development. Such facilities include, without limitation, concrete curbs and gutters, entrance median curbs, caps and pedestrian access walkways, trail, sidewalks and curb ramps, traffic signal and street lighting, and the Sugarpine Trail concrete trail connections, bench pads and benches. Pursuant to this petition, the Council adopted Council Resolution No. 2015-73, declared its intention to annex Assessor's Parcel Numbers 440-220-037, 440-220-060 and 440-220-061 to CFD No. 9, and set the public hearing for formal consideration. Council Resolution No. 2015-73 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 maximum special tax totaling $13,911 annually, to be apportioned proportionately by area for each assessor's parcel, for Fiscal Year 2015-2016. The Maximum Special Tax may 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 of Assessor's Parcel Numbers 440-220-037, 440-220-060 and 440-220-061. Attachments: Location Map Resolutions (3) Ordinance