REPORT TO THE CITY COUNCIL June 22, 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 Facilities District No. 2, Annexation No. 137 (Final Tract Map No. 5513) (south of East Church Avenue between South Minnewawa and Clovis Avenues) (Council District 5) 1. ***RESOLUTION - Annexing Territory to Community Facilities District No. 2 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 2017-2018 and Future Tax Years Within and Relating to Community Facilities District No. 2, Annexation No. 137 ..Body RECOMMENDATIONS 1. Adopt Resolution Annexing Territory to Community Facilities District No. 2 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 2017-2018 and Future Tax Years Within and Relating to Community Facilities District No. 2, Annexation No. 137 EXECUTIVE SUMMARY On May 25, 2017, the Council of the City of Fresno ("Council") adopted Council Resolution No. 2017-139 with the intent to annex territory to Community Facilities District No. 2 ("CFD No. 2") at the request of the landowner of Final Tract Map No. 5513. This is the noticed public hearing to consider annexing Final Tract Map No. 5513 as Annexation No. 137 to CFD No. 2 to provide funding for the operation and reserves for maintenance ("Services") pertaining to the landscaping, trees and irrigation systems within the street rights-of-way, landscape easements and Outlot A associated with this subdivision. The cost for Services is $214.70 per lot annually. If approved, the recommended resolutions and ordinance will levy a Special Tax on the properties in Final Tract Map No. 5513 for identified Services. (See attached location and features map. BACKGROUND On July 22, 1997, the Council of the City of Fresno adopted Resolution No. 97-155 forming CFD No. 2 consisting of eighteen (18) subdivisions to fund maintenance of landscaped easements along public streets abutting these subdivisions. As a condition of map approval the owners of these subdivisions were required to install perimeter landscaping and agreed to be assessed for the maintenance costs. The landowner of Final Tract Map No. 5513 has petitioned the City of Fresno to be annexed into CFD No. 2 to provide funding for the operation and reserves for maintenance ("Services") pertaining to the landscaping, trees and irrigation systems within the street rights-of-way, landscape easements and Outlot A associated with this subdivision. Pursuant to this petition, the Council adopted Council Resolution No. 2017-139, declared its intention to annex Final Tract Map No. 5513 to CFD No. 2, and set the public hearing for formal consideration. (See attached location and features map.) Resolution No. 2017-139 also directed the preparation of an Engineer's Report describing the Services and the costs of those services and this report is on file with the City Clerk. If adopted by the Council, the attached ordinance would levy the proposed Maximum Special Tax of $214.70 per residential lot to provide Services for FY17-18. The Maximum Special Tax will be adjusted upward annually 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 ordinance and resolutions 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 tract. Attachments: Location Map Feature Map Resolutions (3) Ordinance