City of Chino
CA

Staff Report

Conduct a Public Hearing, hold a special election and authorize the formation of CFD No. 2016-2, levy of special taxes, and incur bonded indebtedness for the proposed CFD; and approve the introduction of Ordinance No. 2016-006, levying a special tax, to be read by number and title only and waive further reading of the ordinance.

Information

Department:Finance DepartmentSponsors:
Category:Public Hearing

Attachments

  1. Printout
  2. Resolution Establishing Chino CFD 2016-2 (This file has not yet been converted to a viewable format)
  3. Resolution of Necessity to Incur Indebtedness for Chino CFD 2016-2 (This file has not yet been converted to a viewable format)
  4. Resolution Certifying Election Results for Chino CFD 2016-2 (This file has not yet been converted to a viewable format)
  5. Ordinance for CFD 2016-2 (This file has not yet been converted to a viewable format)
  6. Boundary Map 2016-2 for ROI
  7. Acquisition Agreement (This file has not yet been converted to a viewable format)
  8. CFD 2016-2 CFD Report Final

Budget String

Revenue: 1001000 51205 Expenditure: Transfer In: Transfer Out:

Body

BACKGROUND

Lennar Homes of California, Inc. (Lennar) owns approximately 38 acres of land within two tracts (Tract 18971-1 and Tract 18972) in the City of Chino. Both tracts are located north of Eucalyptus Avenue, with Tract 18971-1 located between San Antonio and Fern Avenues and Tract 18972 located between Fern and Euclid Avenues. Lennar plans to develop Tract 18971-1 as Berkshire consisting of 53 single family units ranging from 3,240 to 4,830 square feet. The second tract, Tract 18972, will have a total of 147 single family detached condominium units ranging from 1,825 to 3,198 square feet.

Representatives from the City of Chino and Lennar have discussed all the details related to the formation of a Community Facilities District with respect to property that is owned and would be developed by Lennar. The formation of a Community Facilities District will help finance the required public infrastructure improvements and City related development impact fees (DIF).

 

ISSUES/ANALYSIS

The Acquisition Agreement defines the public facilities that are eligible for acquisition by the City from the Developer including a specific description, estimated construction costs, process for acquisition, and reimbursement of costs of the facilities that are constructed by the Developer.  The Acquisition Agreement also defines the eligible DIFs due to be paid by the Developer to the City.  A form of the Acquisition Agreement is attached for review

The Mello-Roos Community Facilities Act of 1982 (“the Act”), Section 53318 of the Government Code, establishes the specific proceedings for creating Community Facilities District.  These proceedings require the City Council to conduct a public hearing to hear testimony of all interested persons for or against the establishment of the Community Facilities District, the extent of the Community Facilities District, and the furnishing of specific types of public facilities or services.  At the conclusion of the hearing, the legislative body may determine to proceed with establishing the Community Facilities District.

By Resolution No. 2016-032, Intention to establish Community Facilities District No. 2016-2, which was adopted April 19, 2016, the City Council ordered that, pursuant to Section 53321.5 of the Act, the Officers of the City responsible for the proposed CFD study the district and prepare a report for the City Council.  The Special Tax Consultant, Albert A. Webb Associates, has prepared and submitted this report to the City Council on behalf of the Officers of the City for review. The report contains a brief description of the public facilities by type, their estimated cost, establishes the rates and methods of apportionment of the special taxes to be levied upon the parcels of taxable property required to fund the acquisition and/or construction of said public facilities, as well as the amounts and costs associated with the issuance of bonds.

After the legislative body determines to establish the district, it shall adopt a resolution authorizing the formation of the district and the levy of a special tax.  Upon authorizing the formation of the district, the City Council shall adopt a resolution calling for a special election and may immediately hold the special election.  An official ballot, including a waiver of the time limit pertaining to the conduct of the election, and any requirement for notice of analysis and arguments with respect to the ballot measure, were provided to the property owner(s) prior to the June 7, 2016 City Council meeting.  The City Clerk must also concur with the shortening of various time periods applicable to said landowner election.

The City Clerk shall then canvass the returns of the election and total the number of ballots cast for and against the measure.  After the canvass of returns of any election, pursuant to Section 53326, the legislative body may levy any special tax as specified in the resolution of formation in the territory of the district, if two-thirds of the votes cast are in favor of levying that tax. The legislative body shall then approve the introduction of an ordinance levying a special tax on the district.

At this time, it is estimated there will be approximately $10,000,000 in bonds sold.  Staff is not moving forward with the remaining documents required to sell the bonds until development in the district is sufficient to justify the bond issuance. When development is sufficient to justify a bond issuance, the City will then process the documents necessary to sell bonds.  These documents will include the Resolution approving the Preliminary Official Statement, Fiscal Agent Agreement, Bond Purchase Agreement and District Continuing Disclosure Agreement. These documents will be scheduled for consideration at a future City Council meeting. 

 

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Attachments:              Resolution No. 2016-041, Exhibit A

                            Resolution No. 2016-042

                            Resolution No. 2016-043, Exhibits A and B

                            Ordinance No. 2016-008

                            CFD 2016-2 Boundary Map

                            A form of the Acquisition Agreement

                            Community Facilities District 2016-2 Report

 

 

Meeting History

Jun 7, 2016 7:00 PM Video City Council Regular Meeting
draft Draft

ORDINANCE NO. 2016-008

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHINO, CALIFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2016-2 OF THE CITY OF CHINO AUTHORIZING THE LEVY OF SPECIAL TAXES WITHIN THE DISTRICT