REPORT TO THE CITY COUNCIL August 17, 2017 FROM: SCOTT L. MOZIER, PE, Interim 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 RESOLUTION - Of Intention to annex the territory associated with the development of Assessor's Parcel Number 329-103-01 by Valley Wide Beverage Company (Development Permit Application No. 2017-016) as Annexation No. 18 to the City of Fresno Community Facilities District No. 9 and to authorize the levy of special taxes (west side of South East Avenue north of East Central Avenue) (Council District 3) ..Body RECOMMENDATION Adopt Resolution of Intention to annex the territory associated with the development of Assessor's Parcel Number 329-103-01 by Valley Wide Beverage Company (Development Permit Application No. 2017-016) to City of Fresno Community Facilities District No. 9 ("CFD No. 9"). EXECUTIVE SUMMARY The landowner has petitioned the City of Fresno ("City") to have the territory known as Assessor's Parcel Number 329-103-01, 3525 South East Avenue, annexed to CFD No. 9 to provide funding for the operation and reserves for maintenance ("Services") pertaining to the concrete curbs and gutters and sidewalks, and street lighting associated with this development.. The cost for Services for these improvements totals $961.00 annually for fiscal year 2017-2018. Assessor's Parcel Number 329-103-01 is located entirely in the Fresno City Limits. The Resolution of Intention begins the process, sets the required public hearing for Thursday, September 21, 2017, at 2:00 p.m., and defines the steps required to complete the annexation. (Reference attached location map.) BACKGROUND 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 for services for certain required public improvements along the perimeters of these developments. On December 16, 2008, the Council of the City of Fresno adopted Council Resolution No. 2008-351, forming CFD No. 9 to provide funding for the Services for certain public improvements located within and adjacent to public streets on the perimeter of commercial, industrial and multi-family subdivisions as described and permitted pursuant the Goals and Policies for CFD No. 9 and 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). To satisfy the maintenance requirements of Development Permit Application No. 2017-016 for the development of Assessor's Parcel Number 329-103-01, 3525 South East Avenue, the landowner has petitioned the City to annex to CFD No. 9 to provide funding for the Services pertaining to the concrete curbs and gutters and sidewalks, and street lighting associated with this development. (Reference attached location map.) The attached Resolution initiates the annexation process, sets the public hearing for Thursday, September 21, 2017, at 2:00 p.m., sets the Maximum Special Tax at a total annual cost of $961.00 for FY2017-18, and that the maximum special tax may be adjusted annually at the discretion of the City at +3% plus the increase, if any, in the Construction Cost Index for the San Francisco Region. Annexations to existing community facilities districts are permitted under City Law. The legislative body must follow certain prescribed procedures as outlined below: * Adoption of a Resolution of Intention to Annex to CFD No. 9 * Required 7-day minimum Notice of Public Hearing * Public hearing on Annexation and Levy of Special Tax * Call a Special Mailed-Ballot Election on the proposed Special Tax * Declare the Results of the Election * Formal Adoption of Special Tax Levy (if election passes) The attached Resolution has 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 since this item does not include a bid or award of a construction or services contract. FISCAL IMPACT No City funds will be involved. All costs will be borne by the landowner as set by Exhibit D of the Resolution of Intention attached herein. Attachments: Location Map Resolution Exhibits A - D