Memo from City Manager to City Council regarding Public Hearing to Consider Forming City of Alameda Community Facilities District (CFD) (Alameda Point Public Services District), March 21, 2017
Exhibit 1 - Boundary Map of CFD 17-1, 2.
Exhibit 2 - Community Facilities District Report for CFD 17-1, 3.
Exhibit 3 - Notice of Special Tax Lien - CFD 17-1,
4. Resolition - Forming CFD 17-1,
5. Resolution - Calling Special Election,
6. Resolution - Declaring Special Election Results,
The Alameda Point planning documents, including the Master Infrastructure Plan and detailed fiscal impact analysis, contemplated that the City would provide certain public services at Alameda Point, including the maintenance of public infrastructure improvements (i.e. streets, parks, and a levee), the provision of police and fire protection services, and, via the West Alameda Transportation Management Association, transportation services and programs. The Site A DDA is consistent with the Alameda Point planning documents and all of the parcels within the adaptive reuse areas will be conveyed to private property owners subject to these special tax obligations for public services.
The Alameda Point planning documents also assume that the City will establish a public services district in order to provide a means to assess property at Alameda Point to pay for the services. City staff now recommends that the City establish a CFD under the City's Municipal Code to allow for the levy of special taxes to pay for the services. A CFD is a defined geographic area in which the City is authorized to levy annual special taxes to be used to pay the annual costs of providing specific public services, as well as to pay costs of administration of the CFD. In this case, all of the planned residential and commercial areas on private property within Alameda Point will be included in the proposed CFD to pay for the required services.
As stated above, on March 7, 2017, the City Council adopted a resolution of intention to establish the CFD. The Resolution of Intention to establish the CFD described the proposed boundaries of the CFD; described the proposed special taxes to be levied on the property within those boundaries; described future annexation areas; provided for the acting Director of Public Works to prepare a report describing certain aspects of the CFD; provided for a public hearing on the proposed CFD at the next City Council meeting on March 21, 2017; and also designated formation counsel to assist the City with the formation of the CFD. The exhibits to the Resolution described the services that will be eligible to be funded by the CFD, set forth the rate and method of the apportionment of special taxes (the "RMA") that would be authorized to be levied on property in the CFD, and contained a notice of the public hearing to be published by the City Clerk.
The boundary map for the proposed CFD included with this Report shows the area to be included in the CFD, which is all of Phase 1 of Site A owned by the City and all City owned parcels within the adaptive reuse area (outside of State Lands jurisdiction). The Future Annexation Area includes the rest of the developable areas of Alameda Point, which will be required to annex to the CFD before conveyance to private parties.
The City Clerk has published notice of the March 21, 2017 public hearing regarding the CFD, and the Director of Public Works has prepared the CFD report (Exhibit 2). The CFD report describes the proposed boundaries of the CFD, as well as the services to be funded by the CFD and the estimated costs thereof. It should be noted that the City is the sole owner of the property in the CFD.
The City Council is now requested to hold the public hearing regarding the CFD. At the hearing, all interested persons or taxpayers may testify for or against the establishment of the CFD, the extent of the CFD, and the services to be funded by the CFD. Any person interested is authorized to file a protest in writing. If the owners of over fifty percent (50%) of the land in the CFD protest the formation of the CFD, the City Council may not proceed with the formation of the CFD at this time.
Following the close of the public hearing and assuming no majority protest, the City Council is then requested to take the actions necessary to officially form the CFD, and to authorize the levy of special taxes in the CFD. Staff recommends that the City Council adopt a resolution of formation of the CFD, and a resolution calling a special election of the landowners in the CFD.
A ballot for the election has been delivered to City Manager to execute, as the City is the sole owner of the land in the CFD, and it is expected that the ballots will have been returned to the City Clerk prior to March 21. The only eligible voters are the owners of the land within the boundaries of the CFD, as such boundaries are indicated on the boundary map for the CFD on file with the City Clerk. Under the City's Municipal Code, the landowners are given one vote for each acre of land or portion thereof that they own within the boundaries of the CFD.
The City Clerk will be requested to canvass the election immediately after adoption of the resolution calling the election.
If two-thirds or more of the votes cast at the election are in favor of the CFD, the City Council is then requested to adopt a resolution declaring the results of the election and providing for the recording of a Notice of Special Tax Lien (Exhibit 6) with the County Recorder. The notice provides all future owners of property in the CFD with knowledge of the CFD's special taxing power.
The City Council is then requested to have the first reading of an ordinance levying special taxes. The ordinance permits special taxes to be levied only on property located in the CFD. It is expected that, once the ordinance is effective, special taxes will be levied commencing upon transfer of property from public ownership to private ownership, and will continue to be levied each fiscal year thereafter in perpetuity.