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 CITY COUNCIL AGENDA ITEM NO. 13

Meeting Date: March 12, 2002

Subject/Title: Approve a Resolution declaring the intent to establish the City of Brentwood Community Facilities District No. 1 and to levy a special tax therein to finance certain public services, and set a date of April 23, 2002, at 7:30 p.m. for the public hearing

Submitted by: J. Stevenson/P. Ehler

Approved by: John Stevenson, City Manager

RECOMMENDATION
Approve a resolution that will declare the intent to establish the City of Brentwood Community Facilities District No. 1 (CFD No. 1) and will set a date of April 23, 2002 at 7:30 p.m. (or as soon thereafter as the Council may reach the matter) for a public hearing. 

PREVIOUS ACTION
On February 12, 2002, by City Resolution No. 2469, the City of Brentwood entered into a contract of services with East Diablo Fire Protection District (EDFPD) to increase 24 hour Firefighter Crews from two firefighters to three firefighters. 

The City has adopted Local Goals, Policies and Appraisal Standards Concerning the Use of Community Facilities Act of 1982 (Act). These Local Goals, Policies and Appraisal Standards are required in order for the City to form any Community Facilities Districts utilizing the Act.

BACKGROUND
The Boundaries of proposed CFD No. 1 are shown in the Attachments, and they are contiguous with the City of Brentwood city limits. A Community Facilities District is proposed because it offers greater flexibility regarding fire suppression and emergency medical services that may have some benefit to the general public.

CFD No. 1 is proposed to provide a revenue stream for the salaries, benefits and other incidental costs to increase the number of firefighting/emergency medical services (EMS) personnel located within the City of Brentwood. These services are listed in Attachment A to this staff report. 

The special tax rate will be set at $65 per single family home with a maximum increase of 2% per year. Parcels that have not been issued a building permit prior to January 1st of the ensuing fiscal year will not be taxed. This special tax will sunset June 30, 2053.

Special Taxes must be approved by a two-thirds majority of the qualified voters returning ballots. Qualified voters are determined based on one of the two following cases:

1. If twelve or more registered voters reside within the boundaries of the proposed district, the qualified voters are those registered voters residing within the proposed boundaries of the CFD.
2. If fewer than twelve registered voters reside within the proposed boundaries of the CFD, qualified voters are those owners of property within the proposed boundaries of the CFD. Every property owner receives one vote per acre, or portion thereof, owned within the boundaries of the CFD.

There are approximately 11,000 registered voters residing in the proposed CFD No. 1, and therefore, if an election is held in CFD No. 1, the electors will be the registered voters within CFD No. 1.

At the hearing, testimony considering CFD No. 1 will be heard and protests will be considered from voters residing within CFD No. 1 and persons owning real property within CFD No. 1. If 50% or more of the registered voters, or 6 registered voters, whichever is more, residing within CFD No. 1 or ½ or more of the land area owners within CFD No. 1 file written protests against the establishment of the CFD, no further proceedings shall be taken for a mandated period of one year or as further extended by Council.

If there is not a majority protest, the Contra Costa County Registrar of Voters will mail out election materials and ballots to each registered voter within CFD No. 1 around June 24, 2002. The close of the election period is July 23, 2002. At that time the Contra Costa County elections department will tabulate the ballots and post the results no more than 10 days after.

If the ballot measure receives a two-thirds majority in favor of levying the special tax then the City would be able to levy the special tax for CFD No. 1 for Fiscal Year 2002-03.


FISCAL IMPACT
Currently the City does not have a revenue stream to support an increase in fire/EMS services staff needed due to growth within the City. CFD No. 1 would provide approximately $650,000 in revenue for FY2002-03 with a steady increase to a projected $1,900,000 in FY2021-22. The proposed increase in revenue is due to anticipated new development within the City. After the initial formation of CFD No. 1 all new development within the City limits will be taxed annually, including annexations to the City of Brentwood boundaries.


Attachments:
Proposed Boundary Map for CFD No. 1
Resolution No.
Exhibit A – Authorized Services
Exhibit B – Incidental Expenses
Exhibit C – Apportionment
Exhibit D – Notice of Public Hearing

RESOLUTION NO. ___________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD DECLARING ITS INTENTION TO ESTABLISH ITS COMMUNITY FACILITIES DISTRICT NO. 1 AND TO LEVY A SPECIAL TAX THEREIN TO FINANCE CERTAIN PUBLIC SERVICES TO BE PROVIDED IN AND FOR SUCH COMMUNITY FACILITIES DISTRICT 

WHEREAS, in accordance with the provisions of Section 53312.7 and 53345.8 of the California Government Code, the City of Brentwood (the "City") previously adopted the Local Goals and Policies and Appraisal Standards (the “City Goals and Policies”); and

WHEREAS, it is proposed to establish a community facilities district within the City under the terms of Chapter 2.5 of Division 2 of Title 5 of the California Government Code, commencing with Section 53311 (the “Act”); and
WHEREAS, the name of the proposed community facilities district shall be "Community Facilities District No. 1, City of Brentwood, County of Contra Costa, State of California," ("CFD No. 1"); and
WHEREAS, the proposed boundaries of CFD No. 1 are shown on the boundary map entitled "Proposed Boundaries of Community Facilities District No. 1, City of Brentwood, County of Contra Costa, State of California" on file with the City Clerk; and
WHEREAS, the types of public services proposed to be provided within CFD No. 1 are set forth on Exhibit A attached to this resolution and the City finds that these services are in addition to the services currently provided in the territory of the proposed district; and
WHEREAS, the types of incidental expenses proposed to be incurred are set forth on Exhibit B attached to this resolution; 
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brentwood, as follows:
Section 1. The City Council finds and determines that the foregoing recitals are true and correct.
Section 2. The City Council hereby finds and determines that CFD No. 1 is in compliance with the City Goals and Policies, and to the extent of any non-compliance with the City Goals and Policies, such compliance is hereby waived by the City.
Section 3. The City Council hereby approves the map and adopts the boundaries shown on the map as describing the extent of the territory included in a proposed community facilities district to be known as Community Facilities District No. 1, City of Brentwood, County of Contra Costa, State of California. The City finds that the map is in the form and contains the matters prescribed by Section 3110 of the California Streets and Highways Code and directs the City Clerk to certify the adoption of this resolution on the face of the map, and to file a copy of the map with the County Recorder for placement in the Book of Maps of Assessment and Community Facilities Districts no later than fifteen (15) days after the adoption of this resolution. 
Section 4. Except where funds are otherwise available, a special tax sufficient to pay for all the services for CFD No. 1 as described in Exhibit A attached hereto will be annually levied within CFD No. 1. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the special tax shall attach to all nonexempt real property within CFD No. 1, and this lien shall continue in force and effect until collection of the special tax by the City ceases or June 30, 2053, whichever is earlier. The rate and method of apportionment of the special tax is set forth in Exhibit C attached to this resolution. The special tax with respect to the authorized services may not be prepaid and shall be levied perpetually until the collection of the special tax by the City ceases. In the case of any special tax to pay for public services and to be levied against any parcel used for private residential purposes, under no circumstances will the special tax levied against any parcel be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within CFD No. 1 by more than 10 percent.

Section 5. The City Council hereby sets Tuesday, April 23, 2002, at 7:30 p.m., or as soon thereafter as the City may reach the matter, at the Council Chambers at 734 Third Street, Brentwood, California 94513, as the time and place for the public hearing on the formation of CFD No. 1. At the hearing, testimony concerning the district, the extent of the district or the furnishing of the particular types of public services will be heard and protests will be considered from registered voters residing within CFD No. 1 and persons owning real property within CFD No. 1. Written protests by a majority of the registered voters (if at least six such voters protest), or by the owners of a majority of the land which would be subject to special taxation within the proposed CFD No. 1 will require the suspension of proceedings for at least one year. Written protests must be filed with the City Clerk at or before the time fixed for the hearing. If such protests are directed only against certain elements of the proposed services or proposed special tax, and if such protests constitute a majority protest, only those elements shall be deleted from the proceedings. 
Section 6. No bonds are anticipated to be issued in these proceedings.
Section 7. It is anticipated that the special tax will be billed as a separate line item on the regular property tax bill. However, the City reserves the right, under Section 53340, to utilize any method of collecting the special tax which it shall, from time to time, determine to be in the best interests of the City, including, but not limited to, direct billing by the City to the property owners and supplemental billing.
Section 8. The Director of Finance and Information Systems is directed to study the proposed district and prepare for filing at the public hearing the report required by Section 53321.5 of the Act. The Director of Finance and Information Systems may delegate to consultants the duty to perform the study and report preparation.
Section 9. If an election is held in these proceedings, it is the intention of the City Council that the electors will be the registered voters within CFD No. 1 pursuant to Section 53326 of the Act.
Section 10. The City Council also intends to establish the annual appropriations limit of CFD No. 1 at $5,000,000 for the 2002-2003 fiscal year.
Section 11. The City Clerk is hereby directed to have the Notice of Public Hearing with respect to the proposed CFD No. 1 in the form attached to this resolution as Exhibit D, together with attachments, published once in the Ledger/Dispatch, a newspaper of general circulation in the vicinity of CFD No. 1, no later than ten (10) days prior to the public hearings.
Section 12. This resolution shall take effect from and after its adoption.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting on the 12th day of March, 2002, by the following vote:

AYES: Councilmembers

NOES: 

ABSENT: 

______________________________
Michael A. McPoland, Sr.
Mayor

ATTEST:
______________________________
Karen Diaz, CMC
City Clerk


EXHIBIT A

AUTHORIZED SERVICES



PUBLIC SERVICES TO BE PROVIDED BY
COMMUNITY FACILITIES DISTRICT NO. 1 

The Services shown below are proposed to be financed by Community Facilities District No. 1 (the "CFD") of the City of Brentwood (the "City") and consist of the following:

Fire Suppression and Emergency Medical Services

Fire fighting and emergency medical service personnel salaries, benefits and other associated costs which may include uniforms, safety equipment, etc. which is needed for the daily activities and normal employment of these types of personnel.

EXHIBIT B

INCIDENTAL EXPENSES

It is anticipated that the following incidental expenses may be incurred for CFD No. 1:

Engineering services
Election costs
Special tax consultant services
City review and administration
Special counsel services and expenses
Publishing, mailing and posting of notices
Governmental notification and filing costs
Charges and fees of City other than those waived
Certain annual costs may be included in each annual special tax levy. These include:

Special tax consultant costs
Other necessary consultant costs
Costs of posting and collecting the special taxes
Personnel and Administrative costs of the City

EXHIBIT C

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX


A Special Tax shall be levied on all Taxable Parcels within Community Facilities District No. 1 (the “District”), and collected according to the Rate and Method of Apportionment of Special Taxes described herein. 

All Special Tax payments shall be collected by the Contra Costa County Tax Collector’s Office through a special line item on the property tax billings or through the best interests of the City, including, but not limited to, direct billing by the City to the property owners and supplemental billing.


DEFINITIONS

Annual Administrative Costs: Means the actual or reasonably estimated costs directly related to the administration of the District, as determined by the Finance Director of the City or its designee, which shall include but are not limited to, the costs incurred for forming the District, calculating the Special Taxes, preparing the annual Special Tax collection schedules, County collection fees; etc.

Assessor Parcel: Means a parcel of land which has an assessor parcel number assigned to it by the Contra Costa County Assessor’s office.

Building Permit: Means a Building Permit issued by the City and having an improvement valuation over $50,000. Building Permits for the construction of ancillary structures such as fences, swimming pools, retaining walls, etc are excluded.

City: Means the City of Brentwood.

District: Means Community Facilities District No. 1.

Exempt Parcels: Means all parcels of land owned by the Federal, State, City or other Local Government or Special District.

Fiscal Year: Means the period starting on July 1 and ending the following June 30.

Floor Area Ratio: Means the total improved square footage of a structure divided by the total square footage of the parcel upon which the structure is located. For example, if the improved square footage of a structure is 50,000 sq. ft. and the parcel upon which the structure is located on is 25,000 sq. ft. the Floor Area Ratio is equal to 2.00 (50,000sq. ft./25,000 sq. ft.).

Parcel Acreage: Means the acreage identified on a County Assessor’s map for a particular parcel. If the acreage is not indicated on the County Assessor’s map then the acreage indicated within the County Assessor’s database or any other calculation which accurately depicts the parcel’s acreage. If it is determined that the County’s acreage information for a particular parcel is not accurate then the calculated acreage based upon good engineering judgment shall be used.

Services: Means the maintenance and operation of the services defined below:

Fire fighting and emergency medical service personnel salaries, benefits and other associated costs which may include uniforms, safety equipment, etc. which is needed for the daily activities and normal employment of these types of personnel.

Special Tax: Means the Special Tax levied on each Taxable Parcel within the boundaries of the District each Fiscal Year as shown in the following table and subject to increases discussed below. 



1 If any Taxable Parcel within the boundaries of the District has a Floor Area Ratio greater than one (1.00) the Special Tax rates shown in the table above will be multiplied by the Taxable Parcel’s Floor Area Ratio. For example, if a commercial parcel has a Floor Area Ratio of 1.50 the FY 2002-03 Special Tax rate would be $585.00 per acre ($390.00/acre x 1.50). For FY 2003-04 and on the Special Tax rates shown in the table above will be increase two (2.00%) percent compounded annually.

2 For Special Tax calculation purposes, the maximum acreage any Taxable Parcel will have is five (5.00) acres. Taxable Parcels greater than five (5.00) acres will default to five (5.00) acres.

Taxable Parcel: Means an Assessor Parcel within the boundaries of the District that is not classified as an Exempt Parcel and for which a Building Permit has been issued prior to January 1 preceding the Fiscal Year Special Taxes are levied.


CALCULATION OF SPECIAL TAXES

The calculation of the Special Taxes will be as follows for each Fiscal Year commencing with Fiscal Year 2002-03:

1) On or about July 1 of each year the City will determine which parcels within the boundaries of the District are classified as Taxable Parcels.

2) The City will calculate the Floor Area Ratio for each Taxable Parcel to determine if the Floor Area Ratio for any Taxable Parcel exceeds one (1.00).

3) The City will determine the maximum Special Tax which may be levied on each Taxable Parcel within the boundaries of the District for the ensuing Fiscal Year.

4) The City will calculate the total revenue the District would receive for the ensuing Fiscal Year, if the City were to levy the maximum Special Tax on all Taxable Parcels within the boundaries of the District.

5) The City will determine the funding needs for the District for the ensuing Fiscal Year, which will include the costs to provide the Services and Annual Administrative Costs.

6) If the revenue needs for the District identified in Step No. 5 above are less than the projected revenues identified in Step No. 4 the Special Tax rates would be reduced proportionately for each Taxable Parcel for the ensuing Fiscal Year. If the revenue needs for the District identified in Step No. 5 above are equal to or greater than the projected revenues identified in Step No. 4 the Special Tax rates would be levied at the maximum Special Tax rate for each taxable Parcel.

7) The City will submit the Special Taxes to the County Auditor’s office for inclusion on the secured property tax roll for the applicable Fiscal Year.


COLLECTION OF THE SPECIAL TAXES

Each year, the City’s Finance Department will coordinate with the Contra Costa County Tax Collector’s office to have the Special Tax for each applicable Taxable Parcel placed on the secured property tax roll. If the City believes it is in their best interest they may be able to use methods including but not limited to, direct billing by the City to the property owners and supplemental billing.

EXHIBIT D

NOTICE OF PUBLIC HEARING

COMMUNITY FACILITIES DISTRICT NO. 1
CITY OF BRENTWOOD
COUNTY OF CONTRA COSTA, STATE OF CALIFORNIA

NOTICE IS HEREBY GIVEN that on March 12, 2002, the City of Brentwood (the "City") duly adopted its Resolution No. ______ (the "Resolution of Intention") wherein it declared its intention to establish a community facilities district to be known as "Community Facilities District No. 1, City of Brentwood, County of Contra Costa, State of California" ("CFD No. 1”) and to levy a special tax to pay the costs of certain public services (the “Services”) to be provided within CFD No. 1 under and pursuant to the terms and provisions of the Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”). 
This Notice contains a brief summary of the proposals to establish CFD No. 1, but you are referred to the City's Resolution of Intention on file with the City Clerk for the definitive description of the proposals.
The proposals are to authorize (1) a special tax to be levied within CFD No. 1, (2) funding for the Services on an annual basis; and (3) the annual appropriations limit of CFD No. 1 to be set at $5,000,000 for the 2002-2003 fiscal year.
A description of the Services to be provided in CFD No. 1 is attached hereto as Exhibit A.
A list of the incidental expenses is attached hereto as Exhibit B.
The Rate and Method of Apportionment of the Special Tax is attached hereto as Exhibit C.
THIS IS THE NOTICE OF THE PUBLIC HEARING.
In order to confer the authority upon the City to levy the special tax, a public hearing must be held on the proposal, then the City will decide whether to form the community facilities district, and finally the qualified electors within CFD No. 1 must approve the proposal by a two-thirds vote. If an election is held in these proceedings, it is the intention of the City Council that the electors will be the registered voters within CFD No. 1 pursuant to Section 53326 of the Act.
The public hearing will be held during the City Council's meeting on Tuesday, April 23, 2002, at 7:30 p.m., or as soon thereafter as the City may reach the matter, at the meeting place of the City Council at 734 Third Street, Brentwood, California 94513. 
At the hearing, the testimony of all interested persons or potential special taxpayers for or against the formation of the proposed community facilities district and the authorization to levy the special tax will be heard. If written protests against the proposed CFD No. 1 are delivered to the City Clerk at or before the time set for the hearing by either registered voters residing within, or the owners of property within, the proposed CFD No. 1, they will be counted toward a possible majority protest. Such protests by a majority of the registered voters residing within CFD No. 1 (provided they number at least 6) or by the owners of a majority of the land area within CFD No. 1 which is or will be subject to the special tax, if not withdrawn prior to the close of the hearing so as to reduce the value of the protests to less than a majority, will require the proposed CFD to be eliminated from immediate consideration, and prevent its being included in a subsequent proceedings for at least one year. If such protests are directed only against certain elements of the proposed services or proposed special tax, and if such protests constitute a majority protest, only those elements shall be deleted from the proceedings.
Questions should be directed to City’s Special Tax Consultant, telephone (925) 867-3400.

Dated: March 12, 2002


Karen Diaz, City Clerk 
CITY OF BRENTWOOD


ATTACHMENTS TO THE NOTICE OF PUBLIC HEARING

Exhibit A – Authorized Services (as shown previously)
Exhibit B – Incidental Expenses (as shown previously)
Exhibit C – Rate and Method of Apportionment of the Special Tax (as shown previously)



CLERK’S CERTIFICATE
I, Karen Diaz, City Clerk of the City of Brentwood, do hereby certify as follows:
The foregoing resolution is a full, true and correct copy of a resolution duly adopted at a regular meeting of the City Council of said City duly and regularly held at the regular meeting place thereof on the 12th day of March, 2002, of which meeting all of the members of said City Council had due notice and at which a majority thereof were present; and that at said meeting said resolution was adopted by the following vote:
AYES: Councilmembers
NOES: 
ABSENT: 
An agenda of said meeting was posted at least 72 hours before said meeting at City Hall, 150 City Park Way, Brentwood, California 94513, a location freely accessible to members of the public, and a brief description of said resolution appeared on said agenda.
I have carefully compared the foregoing with the original minutes of said meeting on file and of record in my office, and the foregoing is a full, true and correct copy of the original resolution adopted at said meeting and entered in said minutes.
Said resolution has not been amended, modified or rescinded since the date of its adoption and the same is now in full force and effect.
Dated: _____________, 2002.

_________________________________________
Karen Diaz, CMC
City Clerk, City of Brentwood
(SEAL)