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Home My WebLink About2021-02-09 - AGENDA REPORTS - CFD #2020-1 COOPER STREET PARKING FORMATION (2)O Agenda Item: 4 P CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR CITY MANAGER APPROVAL:1 DATE: February 9, 2021 SUBJECT: SECOND READING OF ORDINANCE - FORMATION OF CITY OF SANTA CLARITA COMMUNITY FACILITIES DISTRICT NO. 2020- 1 (COOPER STREET PARKING MAINTENANCE) DEPARTMENT: Administrative Services PRESENTER: Johanna Medrano RECOMMENDED ACTION City Council conduct second reading and adopt an ordinance entitled: "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF THE CITY OF SANTA CLARITA COMMUNITY FACILITIES DISTRICT NO. 2020-1 (COOPER STREET PARKING STRUCTURE), AUTHORIZING THE LEVY OF SPECIAL TAXES." BACKGROUND In 2016, the City of Santa Clarita (City) formed a community facilities district designated "City of Santa Clarita Community Facilities District No. 2016-1 (Vista Canyon)" (the "Vista Canyon CFD"), for the approved Vista Canyon development located at the end of Lost Canyon Road near Sand Canyon (the "Development"). Vista Canyon CFD covers only the apartment and commercial use parcels within the Development. In February 2020, the Vista Canyon CFD issued its first series of bonds (the "Bonds") secured by special taxes within the Vista Canyon CFD to fund (i) a public parking facility, the Cooper Street Parking Structure (the "Parking Structure"), a City -owned public parking garage with 84 dedicated spaces for the adjacent apartment complex and 529 public parking spaces (ii) a portion of the Transit Center. In October 2020, following final review by the City's Public Works department, the City purchased the Parking Structure from the master developer of the Development for $15,000,000 using the proceeds of the Bonds pursuant to the Funding and Acquisition Agreement approved on April 16, 2016. Pursuant to the conditions for development, the original intent was for the property owner association of the Development (the "POA") to pay the cost of operating and maintaining the Page 1 Packet Pg. 24 O Parking Structure. The City previously entered into a Parking Management Services Agreement with the POA (the "Management Agreement"). In order to maintain the tax-exempt nature of the Bonds and have the Management Agreement be considered a "qualified management contract" under IRS rules, tax counsel for its bond counsel required the formation of a new community facilities district and the imposition of a services special tax to pay the Manager under the Management Agreement and other costs associated with the operation and maintenance of the Parking Structure. In accordance with the Management Agreement, the CFD was established on January 26, 2021, to fund the operation and maintenance of the Parking Structure following receipt of a petition to form the CFD from the landowner of the one-half acre POA parcel adjacent to the Parking Structure and adoption by the City of a resolution of intention on December 8, 2020, which was amended on January 12, 2021, to correct the map of the CFD. Also, on January 26, 2021, a landowner election was held in which unanimous approval was given to authorize the levy of an annual special tax on such property. A first reading of the Ordinance Authorizing the Levy of Special Taxes (the "Ordinance") was conducted on January 26, 2021. The City, acting as the legislative body of the CFD, may conduct the second reading and consider adoption of the Ordinance at this meeting. Because this Ordinance is a result of an election, the Ordinance becomes effective immediately. Following adoption of the Ordinance, the CFD may levy the annual special tax. ALTERNATIVE ACTION Other action as determined by the City Council FISCAL IMPACT All expenses associated with the creation of the CFD will be borne by the developer. Upon approval of the recommended action, the cost of the Cooper Street Parking Structure's operations and maintenance will be funded by the City of Santa Clarita Community Facilities District No. 2020-1 special tax. ATTACHMENTS Ordinance Page 2 Packet Pg. 25 4.a ORDINANCE NO. 21- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF THE CITY OF SANTA CLARITA COMMUNITY FACILITIES DISTRICT NO. 2020-1 (COOPER STREET PARKING STRUCTURE), AUTHORIZING THE LEVY OF SPECIAL TAXES WHEREAS, on December 8, 2020, the City Council (the "Council") of the City of Santa Clarita (the "City") adopted a resolution of intention and further amended on January 12, 2021 (the "Resolution of Intention"), by stating its intention to form City of Santa Clarita Community Facilities District No. 2020-1 (Cooper Street Parking Structure) (the "CFD") pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the California Government Code (the "Act"), to finance certain public services, including operation and maintenance of a public parking structure located at 17265 Rouse Place in the City of Santa Clarita, commonly known as the Cooper Street Parking Structure (the "Services"); WHEREAS, notice was published as required by law relative to the intention of the Council to form the CFD within the boundaries of the CFD; and WHEREAS, on January 26, 2021, this Council held a noticed public hearing as required by law relative to the determination to proceed with the formation of the CFD and the rate and method of apportion and manner of collection of the special taxes (the "Special Taxes") to be levied within the CFD for the Services; and WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the formation of the CFD and the levy of the Special Taxes were heard and a full and fair hearing was held; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 21-2 (the "Resolution of Formation") determining the validity of prior proceedings and establishing the CFD; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 21-3 which called an election within the CFD for January 26, 2021 on the propositions of levying the Special Taxes within the CFD and setting an appropriations limit; and WHEREAS, on January 26, 2021, an election was held within the CFD in which the eligible electors approved by more than two-thirds vote the proposition of levying the Special Taxes within the CFD and setting an appropriations limit. a� NOW THEREFORE THE CITY COUNCIL OF THE CITY OF SANTA CLARITA CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. A special tax (the "Special Tax") is hereby levied within the boundaries of 4, the CFD pursuant to the formula set forth in Exhibit "A" attached to the Resolution of Formation, and incorporated herein by reference, or as such special tax may be modified or amended from time to time by a resolution of change or annexation adopted pursuant to the Page 1 of 3 Packet Pg. 26 4.a provisions of the Act (the "RMA"), in an amount necessary to finance all or a portion of the cost of providing the Services that are in addition to those provided in the territory within the CFD prior to the formation of, or annexation to, the CFD, periodic costs, and costs of the tax levy and collection, as provided in the RMA. SECTION 2. The Director of Administrative Services is hereby further authorized as provided in section 53340 of the Act on or before June 30 of each year to determine the specific special tax rate and amount to be levied for the next fiscal year in accordance with the RMA and to prepare or cause to be prepared a list of all nonexempt parcels within the CFD and the specific amount of the special taxes for each parcel, except that the special tax rates to be levied shall not exceed the maximum rates contained in the RMA. SECTION 3. All of the collections of the Special Tax shall be used as provided for in the Act and the Resolution of Formation and any resolution of change or annexation adopted from time to time by the Council. SECTION 4. The above authorized Special Tax shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale and lien priority in cases of delinquency as is provided for ad valorem taxes; provided, however, the CFD may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations. SECTION 5. If any section, subsection, sentence, clause, phrase or portion of this ordinance, or the application thereof to any person or place, is for any reason held to be invalid or unconstitutional by the final decision of any court of competent jurisdiction, the remainder of this Ordinance shall remain in full force and effect. SECTION 6. Pursuant to Government Code Section 36933(c)(1), the City Attorney was designated to prepare, and the City Clerk published, a summary of this ordinance, and a certified copy of this ordinance was posted in the office of the City Clerk a minimum of five days before the City Council's adoption of this ordinance. SECTION 7. The Mayor shall sign this ordinance and the City Clerk shall attest to such signature. The City Clerk is directed to cause the title and summary or text of this ordinance, together with the vote thereon, to be published within fifteen (15) days after its passage at least once in a newspaper of general circulation published and circulated within the territorial jurisdiction of the City, and to post at the offices of the City a certified copy of the full text of the adopted ordinance along with the names of the Council Members voting for and against the ordinance. SECTION 8. This ordinance relating to the levy of the special taxes takes effect and shall be in force immediately after the date of final passage pursuant to Government Code Section 36937(a). A copy of this ordinance shall be transmitted to the Assessor and the Treasurer -Tax Collector of Los Angeles County. 0 E c� Page 2 of 3 Packet Pg. 27 4.a PASSED, APPROVED AND ADOPTED this 91h day of February, 2021. MAYOR ATTEST: CITY CLERK DATE STATE OF CALIFORNIA COUNTY OF LOS ANGELES CITY OF SANTA CLARITA I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Ordinance No. 2 1 - was regularly introduced and placed upon its first reading at a regular meeting of the City Council on January 26, 2021. That thereafter, said Ordinance was duly passed and adopted at a regular meeting of the City Council on the 91h day of February 2021, by the following vote, to wit: AYES: COUNCIL,MEMBERS: NOES: COUNCIL,MEMBERS: ABSENT: COUNCIL,MEMBERS: AND I FURTHER CERTIFY that the forgoing is the original of Ordinance No. 21- and was published in The Signal newspaper in accordance with State Law (G.C. 40806). CITY CLERK Page 3 of 3 Packet Pg. 28