HomeMy WebLinkAboutCC Reso 2019-40 RESOLUTION NO. 2019-40
RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY
OF CATHEDRAL CITY TO ESTABLISH IMPROVEMENT AREA NO. 12
OF THE CITY OF CATHEDRAL CITY COMMUNITY FACILITIES
DISTRICT NO. 2006-1 (LAW ENFORCEMENT, FIRE, PARAMEDIC
AND PARK MAINTENANCE SERVICES) AND TO AUTHORIZE THE
LEVY OF A SPECIAL TAX WITHIN SAID IMPROVEMENT AREA
WHEREAS, the City Council (the "Council") of the City of Cathedral City (the "City")
has received a petition (including consent and waiver) (the "Petition") requesting the institution
of proceedings for formation of a community facilities district (the "CFD") pursuant to the
Mello-Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of
the Government Code of the State of California(the "Act"); and
WHEREAS, the Council has determined the Petition complies with the requirements of
Section 53318(b) of the Act and now intends to form the CFD; and
WHEREAS, the Council intends to finance (1) police protection services, (2) fire
protection/paramedic services, and (3)park maintenance services in addition to those provided in
the territory within the CFD prior to the formation of the CFD and do not supplant services
already available within the territory proposed to be included in the CFD through the formation
of the CFD subject to the levy of a special tax to pay for such services, being approved at an
election to be held within the boundaries of the CFD; and
WHEREAS, the Council intends to provide for the annexation in the future of territory
(the "Future Annexation Area") to the CFD pursuant to the terms and provisions of the Act,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CATHEDRAL
CITY DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. The Council hereby determines to institute proceedings for the formation
of a community facilities district under the terms of the Act. The exterior boundaries of the
community facilities district are hereby specified and described to be as shown on the certain
map now on file in the office of the City Clerk entitled "Proposed Boundaries of Improvement
Area No. 12 of Community Facilities District No. 2006-1 of the City of Cathedral City," which
map indicates by a boundary line the extent of the territory included in the proposed community
facilities district and shall govern for all details as to the extent of the CFD. On the original and
one copy of the map of such CFD on file in the City Clerk's office, the City Clerk shall endorse
the certificate evidencing the date and adoption of this Resolution. The City Clerk shall file the
original of such map in her office and, within fifteen (15) days after the adoption of this
Resolution, the City Clerk shall file a copy of such map so endorsed in the records of the County
Recorder, County of Riverside, State of California.
Section 2. The Future Annexation Area, which area is to be subject to a special tax to
be levied, shall be comprised of undeveloped parcels within the boundaries of the City, other
than those parcels already within the boundaries of the proposed CFD, requiring a discretionary
approval for development, which are developed for non-retail commercial purposes, and such
other parcels as may be added upon the petition of the property owners thereof. Such Future
Annexation Area may be annexed only with the unanimous approval of the owner or owners of
each parcel or parcels at the time the parcel or parcels are annexed.
Section 3. The name of the proposed community facilities district shall be
"Improvement Area No. 12 of the City of Cathedral City Community Facilities District
No. 2006-1 (Law Enforcement, Fire, Paramedic and Park Maintenance Services)."
Section 4. Except where funds are otherwise available, it is the intention of the City
Council to levy annually in accordance with procedures contained in the Act a special tax (the
"Special Tax") sufficient to finance a portion of the cost of providing law enforcement, fire and
paramedic services in addition to those provided in the territory within the CFD prior to the
formation of the CFD and do not supplant services already available within the territory
proposed to be included in the CFD, the costs of administering the levy and collection of the
Special Tax and all other costs of the levy of the Special Tax, including any foreclosure
proceedings, legal, fiscal, and financial consultant fees, election costs, and all other
administrative costs of the tax levy. The Special Tax will be secured by recordation of a
continuing lien against all real property in the proposed CFD. The schedule of the rate and
method of apportionment and manner of collection of the Special Tax is described in detail in
Exhibit"A"attached hereto and by this reference incorporated herein.
The Special Tax is apportioned to each parcel on the foregoing basis pursuant to
Section 53325.3 of the Act.
The schedule of the rate and method of apportionment of special taxes with respect to any
Future Annexation Area may be different than the rate and method of apportionment of special
taxes with respect to the CFD.
Section 5. A public hearing (the "Hearing") on the establishment of the CFD and the
proposed rate and method of apportionment of the Special Tax shall be held on December 11,
2019, at 6:30 o'clock p.m., or as soon thereafter as practicable, at the chambers of the City
Council of the City of Cathedral City, 68700 Avenida Lalo Guerrero, Cathedral City, California
92234.
Section 6. At the time and place set forth above for the hearing, any interested
person, including all persons owning lands or registered to vote within the proposed CFD, may
appear and be heard.
Section 7. Each City officer who is or will be responsible for the CFD, if it is
established, is hereby directed to study the proposed CFD and, at or before the time of the
above-mentioned Hearing, file a report with the City Council, and which is to be made a part of
the record of the Hearing, containing a brief description of the CFD and his or her estimate of the
cost of providing additional law enforcement, fire and paramedic services within the boundary of
the CFD. The City Manager is directed to estimate the fair and reasonable cost of all incidental
expenses, including all costs associated with the creation of the CFD, determination of the
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amount of any special taxes, collection of any special taxes, or costs otherwise incurred in order
to carry out the authorized purposes of the City with respect to the CFD.
Section 8. The City may accept advances of funds from any sources, including
private persons or private entities, and is authorized and directed to use such funds for any
authorized purpose, including any cost incurred by the City in creating the CFD. The City may
enter into an agreement to repay all of such funds as are not expended or committed for any
authorized purpose at the time of the election on the levy of the Special Tax, if the proposal to
levy such tax should fail, and to repay all of such funds advanced if the levy of the Special Tax
shall be approved by the qualified electors of the CFD.
Section 9. The City Clerk is hereby directed to publish a notice ("Notice") of the
Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation
published in the area of the proposed CFD. Such Notice shall contain the text of this Resolution,
state the time and place of the Hearing, a statement the testimony of all interested persons or
taxpayers will be heard, a description of the protest rights of the registered voters and landowners
in the proposed CFD as provided in Section 53324 of the Act and a description of the proposed
voting procedure for the election required by the Act. Such publication shall be completed at
least 7 days prior to the date of the Hearing.
Section 10. The voting procedure with respect to the establishment of the CFD and the
imposition of the special tax shall be by hand delivered or mailed ballot election.
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PASSED, APPROVED AND ADOPTED this 11th day of NnvPmber , 2019, by the
following vote:
AYES: Councilmembers Gutierrez and Gregory; Mayor Pro Tem Aguilar
and MAyor Carnevale
NOES: None
ABSET: Councilmember Lamb
ABSTAIN: None
dr r,
Mayor
ATTEST:
12-1/1/1X/Cji
City Clerk
APPROVED AS TO F O ' :
City Attorney
4
EXHIBIT A
RATE AND METHOD OF APPORTIONMENT
OF SPECIAL TAX
TO: CITY COUNCIL OF THE CITY OF CATHEDRAL CITY
FROM: ELYON DEVELOPMENT
PETITION (INCLUDING CONSENT AND WAIVER)
REQUESTING THE ESTABLISHMENT OF IMPROVEMENT AREA NO. 12
OF THE CITY OF CATHEDRAL CITY COMMUNITY
FACILITIES DISTRICT NO. 2006-1 (LAW ENFORCEMENT, FIRE, PARAMEDIC
AND PARK MAINTENANCE SERVICES)
The undersigned, on behalf of Elyon Development (the "Property Owner"), does
hereby certify under penalty of perjury the following statements are all true and correct:
1. The undersigned is authorized to represent the Property Owner and is its
designated representative to petition the City Council (the "City Council") of the City of
Cathedral City (the "City") and to give the consent and waiver contained herein with respect to
Improvement Area No. 12 of the City of Cathedral City Community Facilities District No.
2006-1 (Law Enforcement, Fire, Paramedic and Park Maintenance Services) to be established
over the properties included within this petition to be formed under the provisions of the "Mello-
Roos Community Facilities Act of 1982" (the "Act"), being Chapter 2.5 of Part 1 of Division 2
of title 5 (commencing with Section 53311) of the California Government Code.
2. The undersigned hereby certifies as of the date indicated opposite their
signatures, the Property Owner is the owner of all the property within the proposed boundaries of
the Improvement Area No. 12described in Exhibit"A"hereto.
3. The undersigned, pursuant to Section 53318 of the Act, hereby requests
proceedings be commenced to establish Improvement Area No. 12 for the purpose of financing
(1) police protection services, (2) fire protection/paramedic services, and (3) park maintenance
services in addition to those provided in the territory within Improvement Area No. 12 prior to
the formation of Improvement Area No. 12.
4. In accordance with the provisions of the Act, and specifically
Sections 53326(a) and 53327(b) thereof allowing certain time and conduct requirements relative
to a special landowner election to be waived with the unanimous consent of all the landowners to
be included in a community facilities district and concurrence of the election official conducting
the election, the undersigned (i) expressly consents to the conduct of the special election at the
earliest possible time following the adoption by the City Council of a resolution forming
Improvement Area No. 12.
5. and (ii) expressly waives any requirement to have the special election
conducted within the time periods specified in Section 53326 of the Act or in the California
Elections Code.
6. The undersigned waives any requirement for the mailing of the ballot for
the special election and expressly agree said election may be conducted by mailed or hand-
delivered ballot to be returned as quickly as possible to the designated election official, being the
office of the City Clerk of the City Council and the undersigned request the results of said
election be canvassed and reported to the City Council at the same meeting of the City Council
as the public hearing on the formation of Improvement Area No. 12 or the next available
meeting.
7. The undersigned expressly waives all applicable waiting periods for the
election and waives the requirement for analysis and arguments relating to the special election,
as set forth in Section 53327 of the Act, and consents to not having such materials provided to
the landowner in the ballot packet, and expressly waives any requirements as to the form of the
ballot.
8. The undersigned expressly waives all notice requirements relating to
hearings and special elections, whether by posting, publishing or mailing, and whether such
requirements are found in the California Elections Code, the California Government Code or
other laws or procedures, including but limited to any notice provided for by compliance with the
provisions of Section 4101 of the California Elections Code.
9. The undersigned hereby consents to and expressly waives any and all
claims based on any irregularity, error, mistake or departure from the provisions of the Act or
other laws of the State and any and all laws and requirements incorporated therein, and no step or
action in any proceeding relative to Improvement Area No. 12 or the special election therein
shall be invalidated or affected by any such irregularity, error, mistake or departure.
IN WITNESS WHEREOF, I hereunto set my hand this day of ,
2018.
Elyon Development
By:
Name: Chris Ifeanyi
Title: Managing Member of Valley Property
Ventures, LLC
FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY COUNCIL OF
THE CITY OF CATHEDRAL CITY THIS DAY OF , 2019.
City Clerk
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EXHIBIT A
PROPOSED BOUNDARIES OF IMPROVEMENT AREA NO. 12
FIRST DRAFT
RATE AND METHOD OF APPORTIONMENT FOR
IMPROVEMENT AREA NO. 12 OF
COMMUNITY FACILITIES DISTRICT NO. 2006-1
(ELYON DEVELOPMENT)
OF THE CITY OF CATHEDRAL CITY
A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels in
Improvement Area No. 12 ("IA No. 12") of Community Facilities District No. 2006-1
of the City of Cathedral City ("CFD No. 2006-1") and collected each Fiscal Year
commencing in Fiscal Year 2020-2021, in an amount determined by the Council
through the application of the appropriate Special Tax for "Developed Property" as
described below. All of the real property in IA No. 12, unless exempted by law or by
the provisions hereof, shall be taxed for the purposes, to the extent and in the
manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Acre" or "Acreage" means the land area of an Assessor's Parcel as shown on
an Assessor's Parcel Map, or if the land area is not shown on an Assessor's
Parcel Map, the land area shown on the applicable final map, parcel map,
condominium plan, or other recorded County parcel map.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended,
being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State
of California.
"Administrative Expenses" means the following actual or reasonably
estimated costs directly related to the administration of IA No. 12: the costs
of computing the Special Taxes and preparing the annual Special Tax
collection schedules (whether by the City or designee thereof or both); the
costs of collecting the Special Taxes (whether by the County or otherwise);
the costs to the City, IA No. 12 or any designee thereof of complying with City
or IA No. 12 disclosure requirements; the costs associated with responding to
public inquiries regarding the Special Taxes; the costs of the City, IA No. 12 or
any designee thereof related to an appeal of the Special Tax; and the City's
annual administration fees and third party expenses. Administrative Expenses
shall also include amounts estimated or advanced by the City or IA No. 12 for
any other administrative purposes of IA No. 12, including attorney's fees and
other costs related to commencing and pursuing to completion any
foreclosure of delinquent Special Taxes.
City of Cathedral City October 16, 2019
IA No. 12 of CFD No. 2006-1 (Elyon Development) Page 1
"Assessor's Parcel Map" means an official map of the Assessor of the County
designating parcels by Assessor's Parcel number.
"CFD Administrator" means an official of the City, or designee thereof,
responsible for the annual administration of IA No. 12 as provided herein.
"CFD No. 2006-1" means Community Facilities District No. 2006-1 of the City.
"City" means the City of Cathedral City.
"Consumer Price Index" means the Consumer Price Index published by the
U.S. Bureau of Labor Statistics for "All Urban Consumers" in the Los Angeles -
Anaheim - Riverside Area, measured as of the month of December in the
calendar year which ends in the previous Fiscal Year. In the event this index
ceases to be published, the Consumer Price Index shall be another index as
determined by the CFD Administrator that is reasonably comparable to the
Consumer Price Index for the City of Los Angeles.
"Council" means the City Council of the City, acting as the legislative body of
CFD No. 2006-1.
"County" means the County of Riverside.
"Developed Property" means, for each Fiscal Year, all Taxable Property for
which a building permit for new construction was issued after March 1, 2019
and prior to May 1 of the previous Fiscal Year.
"Fiscal Year" means the period starting July 1 and ending on the following
June 30.
"Floor Area" for any Non-Residential Property means the total square footage
of the building(s) located on such property, measured from outside wall to
outside wall, exclusive of overhangs, porches, patios, carports, or similar
spaces attached to the building but generally open on at least two sides. The
determination of Floor Area shall be made by reference to the building
permit(s) issued for such Assessor's Parcel.
"Improvement Area No. 12" means Improvement Area No. 12 of CFD No.
2006-1 (Elyon Development), as identified on the boundary map for CFD No.
2006-1.
"Land Use Class" means any of the classes listed in Table 1.
"Maximum Special Tax" means the Maximum Special Tax, determined in
accordance with Section C.1 below, which can be levied in any Fiscal Year on
any Assessor's Parcel.
City of Cathedral City October 16, 2019
IA No. 12 of CFD No. 2006-1 (Elyon Development) Page 2
"Non-Residential Property" means all Assessor's Parcels for which a building
permit(s) was issued for a non-residential use.
"Non-Retail Commercial/Industrial Property" means all Assessor's Parcels of
Developed Property that are considered Non-Residential Property and that
are not Retail Commercial Property.
"Property Owner Association Property" means, for each Fiscal Year, any
Assessor's Parcel within the boundaries of IA No. 12 that was owned by or
irrevocably offered for dedication to a property owner association, including
any master or sub-association, as of January 1 of the previous Fiscal Year.
"Public Property" means, for each Fiscal Year, (i) any property within the
boundaries of IA No. 12 that was owned by or irrevocably offered for
dedication to the federal government, the State, the City or any other public
agency as of January 1 of the previous Fiscal Year; provided however that any
property leased by a public agency to a private entity and subject to taxation
under Section 53340.1 of the Act shall be taxed and classified in accordance
with its use; or (ii) any property within the boundaries of IA No. 12 that was
encumbered, as of January 1 of the previous Fiscal Year, by an unmanned
utility easement making impractical its utilization for other than the purpose
set forth in the easement.
"Residential Property" means all Assessor's Parcels of Developed Property for
which a building permit has been issued for purposes of constructing one or
more residential dwelling units.
"Retail Commercial Property"means all Assessor's Parcels of Non-Residential
Property for which the building permit was issued for a retail sales tax
generating use or which is being used primarily for a retail sales tax
generating use, as determined by the CFD Administrator. However, if the land
use of an Assessor's Parcel changes and such Assessor's Parcel no longer
generates retail sales tax, such Assessor's Parcel shall no longer be considered
Retail Commercial Property and shall be classified and taxed according to its
use, as determined by the CFD Administrator.
"Special Tax" means the special tax to be levied in each Fiscal Year on each
Assessor's Parcel of Developed Property.
"State" means the State of California.
"Taxable Property" means all of the Assessor's Parcels within the boundaries
of IA No. 12 which are not exempt from the Special Tax pursuant to law or
Section E below.
City of Cathedral City October 16, 2019
IA No. 12 of CFD No. 2006-1 (Elyon Development) Page 3
"Undeveloped Property" means, for each Fiscal Year, all Taxable Property not
classified as Developed Property.
B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, all Taxable Property within IA No. 12 shall be classified as
Developed Property or Undeveloped Property and shall be subject to Special
Taxes in accordance with the rate and method of apportionment determined
pursuant to Section C. Residential Property shall be assigned to Land Use
Class 1. Non-Retail Commercial/Industrial Property shall be assigned to Land
Use Class 2.
C. MAXIMUM SPECIAL TAX
1. Developed Property
a. Maximum Special Tax
The Maximum Special Tax for Fiscal Year 2020-2021 for each Land Use
Class is shown below in Table 1.
TABLE 1
Maximum Special Tax for Developed Property
For Fiscal Year 2020-2021
Improvement Area No. 12
Land Use Description Maximum Special Tax
Class
1 Residential $643.38 per unit
Non-Retail
2 Commercial/Industrial $0.1496 per SF of Floor
Area
Property
b. Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2021, the Maximum Special Tax
shall be increased (but not decreased) by the percentage change in the
Consumer Price Index not to exceed one percent (1%) per Fiscal Year.
c. Multiple Land Use Classes
In some instances an Assessor's Parcel of Developed Property may
contain more than one Land Use Class. The Maximum Special Tax that
can be levied on an Assessor's Parcel shall be the sum of the Maximum
City of Cathedral City October 16, 2019
IA No. 12 of CFD No. 2006-1 (Elyon Development) Page 4
Special Taxes that can be levied for all Land Use Classes located on that
Assessor's Parcel.
2. Undeveloped Property
No Special Tax shall be levied on Undeveloped Property.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2020-2021 and for each following Fiscal Year,
the Council shall levy the Special Tax on each Assessor's Parcel of Developed
Property at 100% of the applicable Maximum Special Tax.
E. EXEMPTIONS
No Special Tax shall be levied on Retail Commercial Property, Property Owner
Association Property or Public Property. However, should an Assessor's
Parcel no longer be classified as Retail Commercial Property, Property Owner
Association Property or Public Property, its tax-exempt status will, without the
necessity of any action by the Council, terminate.
F. APPEALS AND INTERPRETATIONS
Any landowner or resident may file a written appeal of the Special Tax on
his/her property with the CFD Administrator, provided that the appellant is
current in his/her payments of Special Taxes. During the pendency of an
appeal, all Special Taxes previously levied must be paid on or before the
payment date established when the levy was made. The appeal must specify
the reasons why the appellant claims the Special Tax is in error. The CFD
Administrator shall review the appeal, meet with the appellant if the CFD
Administrator deems necessary, and advise the appellant of its determination.
If the CFD Administrator agrees with the appellant, the CFD Administrator
shall eliminate or reduce the Special Tax on the appellant's property and/or
provide a refund to the appellant. If the CFD Administrator disagrees with the
appellant and the appellant is dissatisfied with the determination, the
appellant then has 30 days in which to appeal to the Council by filing a written
notice of appeal with the City Clerk, provided that the appellant is current in
his/her payments of Special Taxes. The second appeal must specify the
reasons for its disagreement with the CFD Administrator's determination.
Interpretations may be made by the Council by ordinance or resolution for
purposes of clarifying any vagueness or ambiguity in this Rate and Method of
Apportionment.
City of Cathedral City October 16, 2019
IA No. 12 of CFD No. 2006-1 (Elyon Development) Page 5
G. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time
as ordinary ad valorem property taxes; provided, however, that IA No. 12 may
directly bill the Special Tax, may collect Special Taxes at a different time or in
a different manner if necessary to meet its financial obligations, and may
covenant to foreclose and may actually foreclose on delinquent Assessor's
Parcels as permitted by the Act.
H. TERM OF SPECIAL TAX
The Council is authorized to levy the Special Tax in perpetuity.
City of Cathedral City October 16, 2019
IA No. 12 of CFD No.2006-1 (Elyon Development) Page 6
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