MEETING DATE:
OCTOBER 12, 2021
SUBJECT:
Title
RESOLUTION NOS. 2021-8929, 2021-8930 & 2021-8931 - ANNEXATION NO. 141 TO COMMUNITY FACILITIES DISTRICT NO. 98-02 (LIGHTING, LANDSCAPING, OPEN SPACE, AND PRESERVE MAINTENANCE) DESIGNATION OF IMPROVEMENT AREA F-57 AND AUTHORIZATION OF THE FUTURE ANNEXATION AREA OF F-57
Body
Recommendation
Recommendation
1. ADOPT a resolution approving the boundary of the territory to be annexed into Community Facilities District 98-02 for Lighting, Landscaping, Open Space, and Preserve Maintenance (CFD 98-02) Improvement Area F-57 (IA F-57).
2. ADOPT a resolution declaring the intention to annex such territories into CFD 98-02 IA F-57 and setting the public hearing date.
3. ADOPT a resolution approving the boundary of future territory to be annexed into CFD 98-02 IA F-57.
Body
Board or Commission Action
On March 13, 2018, City Council adopted Resolutions 2018-8471 and 2018-8472 for the approval of the H.G. Fenton Development Company LLC Tentative Subdivision Map (TSM) 16-003 and the Site Development Plan (SDP) 17-006. On March 27, 2018, City Council adopted ordinance 2018-1463 for the approval of the Discovery Village South Specific Plan.
Relevant Council Strategic Theme
Good Governance
Planning for the Future
Dynamic and Responsive Service Delivery
Relevant Department Goal
Not applicable.
Executive Summary
This item is to initiate proceedings to annex property within the Discovery Village South Specific Plan and University District Specific Plan into CFD No. 98-02 and to designate such territory as IA F-57 thereto. These proceedings are intended to provide notice to the public of City Council’s intent to annex territory within the Discovery Village South Specific Plan Area to IA F-57 and establish the boundaries of the intended annexation. These proceedings are further intended to initiate proceedings to authorize the future annexation of certain additional territories within the University District Specific Plan Area west of Twin Oaks Valley Road to CFD No. 98-02 and IA F-57.
Discussion
CFD 98-02 was formed pursuant to the Mello-Roos Community Facilities Act of 1982 and the City of San Marcos Community Facilities District Procedural Ordinance enacted pursuant to the powers reserved by the City of San Marcos under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California to provide funding necessary for the maintenance of the City’s lighting, landscaping, parks, medians, open space, and preserve space. Special Improvement Areas (IAs) are formed as separate zones within CFD No. 98-02 to provide special tax funding necessary for the maintenance of development improvements and impacts above and beyond what is normally maintained by the City.
The Discovery Village South project proposes to develop the 38.99-acre vacant site east of Craven Road and west of Twin Oaks Valley Road (Attachment A- Vicinity Map). The Project proposes 220 dwelling units within the project limits. The conditions of approval require the project to annex into CFD No. 98-02 and form a special Improvement Area (IA).
The University District Specific Plan allows for a mixture of residential and commercial units west of Twin Oaks Valley Road without a defined limit. It is currently estimated that 637 residential condominium units will be proposed within the Specific Plan area west of Twin Oaks Valley Road as proposed in TSM19-002 which is currently under review by City staff. IA F-54 was formed to provide funding for maintenance of infrastructure within the University District Specific Plan east of Twin Oaks Valley Road, but a separate IA was noted to be required for the development within the University District Specific Plan west of Twin Oaks Valley Road.
Recognizing that the infrastructure needed to serve Discovery Village South also benefits the development of the University District Specific Plan area west of Twin Oaks Valley Road, the boundary for IA F-57 will be encapsulate both Specific Plan areas. The added benefit to forming a larger IA as opposed to several smaller IA’s is that the cost of maintenance is spread over more development areas preventing differing tax assessments between multiple projects with similar facilities. An additional benefit to forming a larger IA is the inclusion of all the facilities in the area that need to be maintained which allows for easier administration of the district.
To initiate IA annexation proceedings for the Property, City Council must approve the boundary of the territory to be included in the annexation. Resolution 2021-XXXX (Attachment C) identifies the current boundary to be included in CFD 98-02 IA F-57 and Resolution 2021-ZZZZ (Attachment E) identifies the future boundary to be included in CFD 98-02 IA F-57. As additional commercial units and/ or residential units are developed, the future boundary will include these areas as well based on the guidelines of the University District Specific Plan.
City Council must also adopt a Resolution of Intention (ROI) to annex development property into CFD 98-02 IA F-57. Resolution 2021-YYYY (Attachment D) identifies the facilities to be maintained, establishes the maximum special tax for this improvement area, and sets the date and time for the subsequent public hearing for City Council consideration of the annexation.
The special tax for CFD No. 98-02 IA F-57 will be levied at the rates shown in the Rate and Method of Apportionment (RMA) attached to this staff report (Attachment B). The taxes levied ensure sufficient funding to maintain the included improvements and features into perpetuity.
The improvements to be included in CFD 98-02 IA F-57 include the open space features listed below.
• Urban Trail
• Park Maintenance
• Pedestrian Bridges
• Street Furniture
• Medians
• Storm Water Quality Facilities
• Hydromodification Facilities
• Landscaping
Environmental Review
The project is categorically exempt from the California Environmental Quality Act (CEQA) as per Section 15378 of the CEQA Guidelines because there is no potential to result in a physical change in the environment and as per Section 15061(b)(3) because it can be seen with certainty that there is no possibility it would have a significant effect on the environment.
Fiscal Impact
The maximum special tax for Special Improvement Area F-57 for Fiscal Year 2021-22 will be $1,107.61 per equivalent dwelling unit, a total of $949,221.77 for the full development of 857 residential units in 2021 dollars. With the flexibility of the University District Specific Plan, as additional units are introduced and developed within the limits shown on Attachment E-1, these units will be annexed into IA-57 which could further reduce the annual special tax that is assessed. The maximum tax is the upper limit that can be assessed in any given tax year. It is escalated every fiscal year based on the Consumer Price Index (CPI). Details and the break-down of assessments have been provided within the Rate and Method of Apportionment in Attachment B.
Attachment(s)
Attachment A: Vicinity Map
Attachment B: Rate and Method of Apportionment
Attachment C: City Council Resolution 2021-8929, Resolution Adopting Boundary Map
Attachment C-1: Boundary Map
Attachment D: City Council Resolution 2021-8930, Resolution of Intent to Annex Property
Attachment E: City Council Resolution 2021-8931, Resolution Adopting Boundary Map for Future Annexations
Attachment E-1: Boundary Map for Future Annexation
Prepared by: Kyle Wright, Construction Manager
Reviewed by: Dahvia Lynch, Director of Development Services
Approved by: Jack Griffin, City Manager