Title
Subject: Werner Court Vegetation Management - Public Hearing
From: Financial Services Agency
Recommendation: Conduct a Public Hearing and upon conclusion adopt the following legislation regarding the formation of Communities Facilities District No. 2003-1 (Werner Court Vegetation Management):
1) Adopt a Resolution of Formation;
Body
FILED
CITY OF OAKLAND OFFICE OF THE CITY CLERK
COUNCIL AGENDA REPORT CAQ 4NID
2003 JUN 2 6 PH 2: 2 6
TO: Office of the City Manager
AT`T`N: Robert C. Bobb
FROM: Financial Services Agency
DATE: July 8, 2003
RE: PUBLIC HEARING AND RESOLUTION OF FORMATION, RESOLUTION
CALLING SPECIAL MAILED-BALLOT ELECTION, AND RESOLUTION
DECLARING ELECTION RESULTS, ALL IN CONNECTION WITH THE
COMMUNITY FACILITIES DISTRICT NO. 2003-1 (WERNER COURT
VEGETATION MANAGEMENT); AND ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF OAKLAND LEVYING A SPECIAL TAX FOR THE FISCAL
YEAR 2003-2004 AND FOLLOWING FISCAL YEARS SOLELY WITHIN AND
RELATING TO COMMUNITY FACILITIES DISTRICT NO. 2003-1 (WERNER
COURT VEGETATION MANAGEMENT)
SUAU4ARY
A Community Facilities District ("CFD"), encompassing a 21-lot subdivision on Werner Court,
has been proposed in order to levy and collect funds from the 21 lots within the District in order
to fund the vegetation management and related costs required as a condition of developing this
subdivision. Following the Public Hearing on this Cornmunity Facilities District No. 2003-1
(Werner Court Vegetation Management), the City Council must adopt additional resolutions and
an ordinance in order to complete the establishment of CFD No. 2003-1.
FISCAL EMPACT
The proposed Werner Court Vegetation Management District (the "District") will be fully
supported by an annual special tax levied exclusively on the 21 parcels within the District. The
City's administrative costs related to the District will be reimbursed from the special tax
proceeds. There will be no impact on the City's finances or on the General Fund.
BACKGROUND
Pursuant to the Mello-Roos Community Facilities Act of 1982 (the "Community Facilities Act"),
the City Council has on this same date adopted the necessary resolutions preliminary to a Public
Hearing on the Community Facilities District No. 2003-1 (Werner Court Vegetation
Management), and has conducted the Public Hearing. Based on a petition by the owner of the
Werner Court subdivision, the District will provide a legally binding mechanism for the annual
levy and collection of a special tax on the 21 parcels, whose proceeds will pay for the required
vegetation management costs and the administrative expenses of the City pertaining to the
District. /I?
ONCOUNCIL 10j
VUL 1 5 2M Finance comm.
y 8, 2003
Page 2
The Community Facilities Act provides that a Public Hearing must be held on the establishment
of a CFD. At the close of the Public Hearing, absent any objections by the single property owner
in the proposed District, the Council may determine that there was no majority protest, as defined
by the Community Facilities Act.
In addition, as part of the proceedings for establishing the District, a formula for calculating the
annual special tax on the taxable parcels (called the "Rate and Method of Apportionment of
Special Tax" in the Community Facilities Act, and referred to in this report as the "Special Tax
Formula") must be approved, first by the City Council (in the previously approved Resolution of
Intention) and then by the qualified electors in the District voting at a special election conducted
as a mailed-ballot election. If, as is the case here, there are no registered voters living in the
District, the qualified elector is the landowner; since Werner Development is the sole landowner,
it is the sole qualified elector. In the mailed-ballot election for the CFD No. 2003-1, the sole
ballot was cast in favor of the establishment of the District. Therefore, at the close of the Public
Hearing, the Council determined that there was no majority protest, as defined by the Community
Facilities Act.
The Special Tax Formula (as set forth as Exhibit A to the previously-adopted Resolution of
Intention) provides for a $125 maximurn special tax on each of the 21 lots for fiscal year 2003-
04, for a total of $2,625, with provision to increase the maximum special tax amount each year
thereafter in accordance with the increase, if any, in the Consumer Price Index of the San
Francisco-Oakland-San Jose area for all urban consumers. As indicated in the hearing report for
CFD No. 2003-1, the estimated cost and expense for the District for fiscal year 2003-04 is
$2,625.
Upon the final approval of the District, a notice of special tax lien will be recorded with the
Alameda County Recorder, resulting in a permanent lien on each of the 21 buildable lots of Tract
7049 to secure payment of the annual special tax of CFD No. 2003-1. The lien continues in
perpetuity unless the City Council terminates the special tax obligation by later Council actions
in accordance with the Community Facilities Act.
As the local agency which establishes the District, the City of Oakland will have the obligation to
provide annually for calculation of the special tax levy and for timely submission to the Alameda
County Auditor-Controller of the information required for posting the special tax levy to the
secured property tax roll of the County. The legislation recommended for adoption delegates this
responsibility to the Director of the Financial Services Agency and provides that she may hire
private consultants to perform these duties. The costs for preparation of the levy and any other
administrative costs incurred by the City in conjunction with the District will be recovered by the
City from the proceeds of the special tax.
KEY ISSUES AND IWACTS
The establishment of the proposed Community Facilities District will provide a permanent
mechanism to guarantee ftinding for the weed abatement and vegetation management which are a
condition for the development of this subdivision in the Oakland Hills. The entire costs of the
District - including any administrative costs incurred by the City - will be covered by the.special
tax to be levied on the 21 parcels located within the District, pursuant to the owner's petition.
Page 3
SUSTAINABLE OPPORTUNITIES
Economic: The establishment of the District will permit the development of a 21-lot
subdivision, which will provide new property tax revenues for the City's General Fund.
Environmental: The District will ensure that adequate vegetation management is carried out in
this section of the sensitive Oakland Hills.
Social Equit : The resulting property tax revenues will be available in the City's budget, which
can provide needed services to City residents.
DI SABILITY AND SENIOR CITIZEN ACCESS
There is no impact to disability or senior citizen access following actions under this report.
RECOMMENDATIONS AND RATIONALE
Staff recommends that the City Council approve the resolutions and ordinance providing for the
establishment of Community Facilities District No. 2003-1 (Werner Court Vegetation
Management), and for levying the special tax needed to provide the required funding for
vegetation management in this section of the Oakland Hills.
ACTION REQUESTED OF THE CITY COUNCIL
Council is requested to conduct the Public Hearing and to approve the Resolution of Formation,
the Resolution Calling Special Mailed-Ballot Election, the Resolution Declaring Results of
Election, and the Ordinance Levying a Special Tax for the Community Facilities District No.
2003-1 (Wemer Court Vegetation Management).
Respectfully submitted,
DEBORAH EDGEILY
Director, Financial Services Agency
Prepared by:
Joseph T. Yew, Jr.
Treasury Manager
ORAICOut4r
APPROVED AND FORWARDED TO THE jj
FINANCE AND MANAGEMENT COMMITTEE JUL I 6 2003
0 AGER - 21 31 Iq
FINANCE & M CMTE.
JU
OAKLAND CITY COUNCIL F i L En@
OFFICE OF THE CITY CLERK
L!. MD
RESOLUTION NO. C.M. .
2603 JUN 2 6 PM 2: 2 6
RESOLUTION OF FORMATION
Community Facilities District No. 2003-1
(Werner Court Vegetation Management)
WHEREAS, reference is made to the Resolution of Intention, adopted by the City
Council (the "Council") on this same date, and to the Hearing Report on file with the City Clerk
(the "Clerk'% for the description of the authorized maintenance services and the special tax
proposed to be authorized by these proceedings; and
WHEREAS, at the time set for the public hearing on this date, the Council conducted the
public hearing, and at the close of the public hearing, the Council determined that a majority
protest under Section 53324 of the Government Code was not made at the hearing;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Oakland as
follows:
1. The Council finds and determines that the foregoing recitals are true and correct.
2. There is hereby formed a community facilities district by the City of Oakland (the
"City") under the terms of the Mello-Roos Community Facilities Act of 1982, Chapter 2.5 of
Division 2 of Title 5 of the California Government Code, commencing with Section 5331 1. The
boundaries of the community facilities district are shown on the boundary map approved by the
Resolution Approving Boundary Map, adopted by this Council on this same date. A copy of the
approved boundary map is on file with the Clerk. Iq IV/
0W[C91rF,IL FINANCE & MAIVIENT CMTE.
rJUL JIS
3. The name of the community facilities district is "Community Facilities District
No. 2003-1 (Werrier Court Vegetation Management), City of Oakland, County of Alameda, State
of California" ("CFD No. 2003-1").
4. The types of main enance services authorized to be financed by CFD No. 2003-1
are described as maintenance services for an open space parcel situated immediately adjacent to
and generally to the northeast of the boundary of CFD No. 2003-1, which services shall consist
of weed abatement and vegetation management on a buffer strip approximately 50 feet wide
between the boundary line of CFD No. 2003-1 and the balance of the open space parcel.
5. A special tax sufficient to pay for all such services and the authorized
administrative expenses will be annually levied within CFD No. 2003-1. 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. 2003 - 1, and this lien shall continue in force and effect in perpetuity or
until this Council terminates the levy of the special tax by further legal proceedings not presently
anticipated. The rate and method of apportionment of the special tax (the "Rate and Method") is
set forth in Exhibit attached hereto and by this reference incorporated herein.
6. The types of admini trative expenses authorized to be paid from the proceeds of
the special tax are described in the definition of "Administrative Expenses" set forth in the Rate
and Method.
7. Advances of funds or contributions of work in kind from any lawful source,
specifically including owners of property within CFD No. 2003-1, may be reimbursed from
special tax revenue to the extent of the lesser of the value or cost of the contribution, but any
agreement to do so shall not constitute a debt or liability of the City.
8. The Director of the Financial Services Agency of the City (the "Finance
Director") is designated as the person responsible for annually preparing or causing the
preparation of a current roll of special tax levy obligations by assessor's parcel number, for
submitting said roll to the County of Alameda Auditor-Controller for inclusion on the property
tax roll, and for responding to inquiries regarding estimates of future special tax levies. The City
may contract with private consultants to provide this service in lieu of the Finance Director.
9. The special tax will be collected and enforced as a separate line item on the
regular property tax bill. However, the Council 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.
10. The Council hereby establishes the annual appropriations limit of CFD No. 2003-
1 at $10,000 for the 2003-2004 fiscal year.
11. Based upon the Certificate Re Land Ownership on file with the Clerk and
presented to this Council, the qualified electors for the election to be held in these proceedings
shall be Werner Development, UC, the sole landowner of the taxable property within CFD No.
2003-1. The election will be conducted as a mailed-ballot election, and this Council hereby
designates the Clerk as the official to conduct the mailed-ballot election.
12. The Council now finds and determines that all proceedings up to and including
the adoption of this resolution were and are valid and in conformity with the requirements of the
Mello-Roos Community Facilities Act. This determination and finding is final and conclusive in
accordance with Government Code Section 53325. I(b).
13. This resolution shall take effect from and after its adoption.
IN COUNCIL, OAKLAND, CALIFORNIA, 20
PASSED BY THE FOLLOWING VOTE:
AYES: - BROOKS, BRUNNER, CHANG, NADEL, QUAN, REID, WAN AND PRESIDENT DE LA FUENTE
NOES -
ABSENT-
ABSTENTION -
ATTEST:
CEDA FLOYD
City Clerk and Clerk of the Council
of the City of Oakland, California
Ift9 FINANCE & GEMENT CMTE
ORAICOUNCIL 'i 2003
JUL I 5 2003
EXIMIT A
CITY OF OAxLAND
CommuNiTy FACILITIES DISTRICT No. 2003-1
(WERNER COURT VEGETATION MANAGEMENT)
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAx
A Special Tax applicable to each Assessor's Parcel in Community Facilities District No.
2003-1 (Wemer Court Vegetation Management) [herein "CFD No. 2003-1"I shall be
levied and collected according to the tax liability determined by the City Council through
the application of the appropriate Special Tax rate, as described below. Ail of the
property in CFD No. 2003-1, unless exempted by law or by the provisions of Section E
below, shall be taxed for the purposes, to the extent, and in the manner herein provided.
A. DEFUTMONS
The terms hereinafter set forth have the following meanings:
"Acreage" or "Acre" means the land area making up 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 subdivision map or other parcel map recorded
at the County Recorder's Office.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being
Chapter 2.5 (commencing with Section 5331 1), Division 2, of Title 5 of the Government
Code of the State of California.
"Administrative Expenses" means any or all of the following: the expenses of the City
in carrying out its duties for CFD No. 2003-1, including, but not limited to, the levy and
collection of the Special Tax, the fees and expenses of its counsel, charges levied by the
County in connection with the levy and collection of Special Taxes, costs related to
property owner inquiries regarding the Special Tax, and all other costs and expenses of
the City in any way related to the establishment or administration of CFD No. 2003-1.
"Administrator" shall mean the person or firm designated by the City to administer the
Special Tax according to this Rate and Method of Apportionment of Special Tax.
"Assessor's Parcel` or "Parcel" means a lot or parcel shown in an Assessor's Parcel
Map with an assigned Assessor's Parcel number.
"Assessor's Parcel Map" means an official map of the County Assessor of the County
of Alameda designating parcels by Assessor's Parcel number.
City of Oakland CFD No. 2003-1 1
"Buildable Lot" means an individual lot within a Final Map for which a building permit
for new construction may be issued without further subdivision of such lot.
"City" means the City of Oakland.
"City Council" means the City Council of the City of Oakland, acting as the legislative
body of the CFD.
"County" means the County of Alameda.
"Final Map" means a final map, or portion thereof, approved by the County pursuant to
the Subdivision Map Act (California Government Code Section 66410 et seq) that creates
individual lots for which building permits may be issued. The term "Final Map" shall not
include any large-lot subdivision map, Assessor's Parcel Map, or subdivision map or
portion thereof, that does not create individual lots for which building permits may be
issued, including Assessor's Parcels that are designated as remainder parcels.
"Fiscal Year" means the period starting on July I and ending on the following June 30.
"Maximum Special Tax" means the maximum Special Tax determined in accordance
with Section C below that can be levied on Taxable Property in any Fiscal Year.
"Proportionately" means, for Buildable Lots, that the ratio of the actual Special Tax
levied to the Maximum Special Tax is equal for all Buildable Lots.
"Public Agency" means the federal government@ State of California or other local
governments or public agencies.
"Special Tax Requirement" means the amount of revenue needed in any Fiscal Year to
pay for the following: (i) services, maintenance expenses, sinking fund payments and
capital reserves authorized to be funded by CFD No. 2003-1, (ii) Admini trative
Expenses, and (iii) amounts needed to cure any delinquencies in the payment of Special
Taxes which have occurred or (based on delinquency rates in prior years) may be
expected to occur in the Fiscal Year in which the tax will be collected.
"Special Tax" means any tax levied pursuant to the Act on property within CFD No.
2003-1.
"Taxable Property" means all Assessor's Parcels within the boundaries of CFD No.
2003-1 which are not exempt from the Special Tax pursuant to law or Section E below.
B. CATEGORIZING PARCELS FOR ANNUAL TAX LEVY
Each Fiscal Year, the Administrator shall identify the current Assessor's Parcel numbers
for all Parcels of Taxable Property within CFD No. 2003-1. The Administrator shall also
Cily of Oakland CFD No. 2003-1 2
determine whether each Parcel meets the definition of a Buildable Lot based on a review
of all Final Maps recorded in CFD No. 2003-1.
C. MAXEV" SPECUL TAX
The maximum Special Tax for Taxable Property in CFD No. 2003-1 is $125 per
Buildable Lot for fiscal year 2003-04. Beginning January 1, 2004, and each January 1
thereafter, the Maximum Special Tax shall be adjusted by applying the increase, if any, in
the Consumer Price Index of the San Francisco-Oakland-San Jose area for all urban
consumers that has occurred since January of the prior year. Each annual adjustment of
the Maximum Special Tax shall become effective on the subsequent July 1.
D. MIETHOD OF LEVY AND COLLECTION OF SPECUL TAX
Each Fiscal Year, the Special Tax shag be levied Proportionately on each Buildable Lot
up to I 00% of the Maximum Special Tax determined pursuant to Section C above.
The Special Tax for CFD No. 2003-1 shall be collected at the same time and in the same
manner as ordinary ad valorem property taxes provided, however, that the City may
(under the authority of Governm nt Code Section 53340) collect Special Taxes at a
different time or in a different manner if necessary to meet CFD No. 2003-1 financial
obligations, and the Special Tax shall be equally subject to foreclosure if delinquent.
E. LEWTATIONS
Notwithstanding any other provision of this Rate and Method of Apportionment of
Special Tax, no Special Tax shall be levied on land that has been conveyed to a Public
Agency, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act.
F. INTERPRETATION OF SPECIAL TAX FORM-ULA
The City reserves the right to make minor administrative and technical changes to this
document that do not materially affect the rate and method of apportioning Special Taxes.
In addition, the interpretation and application of any section of this document shall be left
to the City's discretion. Interpretations may be made by the City by ordinance or
resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method
of Apportionment.
City of Oakland CFD No. 2003-1 3