RESOLUTION NO. 2017-0105 Adopted by the Sacramento City Council March 21, 2017 RESOLUTION OF FORMATION ESTABLISHING SACRAMENTO STREETCAR COMMUNITY FACILITIES DISTRICT NO. 2017-01, CITY OF SACRAMENTO, COUNTY OF SACRAMENTO, STATE OF CALIFORNIA, AND PROVIDING FOR THE LEVY OF A SPECIAL TAX THEREIN TO FINANCE THE OPERATION AND MAINTENANCE OF CERTAIN PUBLIC FACILITIES BACKGROUND A. On Tuesday, January 24, 2017, the City Council duly adopted Resolution No. 2017-0039 (the Resolution of Intention ) declaring its intention (1) to establish a community facilities district within the City s jurisdictional boundaries under the Mello-Roos Community Facilities Act of 1982, set forth at Government Code sections 53311 through 53368.3 (the Act ), to be known and designated as Sacramento Streetcar Community Facilities District No. 2017-01, City of Sacramento, County of Sacramento, State of California (the CFD ); and (2) to levy a special tax therein to fund the operation and maintenance of certain public facilities. B. As required by Streets and Highways Code section 3110, in the Resolution of Intention the City Council approved the boundary map for the CFD, titled Boundary Map, Sacramento Streetcar Community Facilities District No. 2017-01, City of Sacramento, County of Sacramento, State of California (the Boundary Map ) and set forth in Exhibit A to the Resolution of Intention. The Boundary Map was recorded on February 2, 2017, in Book 123 at Page 0011 of the Book of Maps of Assessment and Community Facilities Districts maintained by the Sacramento County Clerk/Recorder, and a copy of it is attached to this resolution as Exhibit A. C. In the Resolution of Intention, the City Council fixed Tuesday, Tuesday, March 7, 2017, at 6:00 p.m., in the Council Chambers in New City Hall, 915 I Street, Sacramento, California, as the time and place for a public hearing, which was continued to March 21, 2017, (the Public Hearing ) to be held by the City Council to consider the establishment of the CFD; the authorization of a special tax to be levied and collected within the CFD (the Special Tax ); the proposed rate, method of apportionment, and manner of collection of the Special Tax (the RMA ); the services proposed to be funded; the establishment of an appropriations limit for the CFD; and all other matters set forth in the Resolution of Intention. Resolution 2017-0105 March 21, 2017 Page 1 of 38
D. In accordance with the Resolution of Intention, the Manager of the Public Improvement Financing Division of the City Finance Department submitted a report (the Hearing Report ) to the City Council on the need for, and the estimated cost of, the proposed services to be funded and certain other matters. The City Council has reviewed the Hearing Report, which is attached as Exhibit B and made a part of the record of the Public Hearing. E. On March 21, 2017, at or shortly after the time of the continued Public Hearing, the City Council opened the Public Hearing to consider the establishment of the CFD; the authorization of the Special Tax; the RMA; the services proposed to be funded the establishment of the appropriations limit; and all other matters set forth in the Resolution of Intention. F. At the Public Hearing, any persons interested, including all taxpayers, property owners, and registered voters within the CFD, were given an opportunity to appear and be heard, and the City Council heard and considered the testimony of all interested persons for or against the establishment of the CFD; the levy of the Special Tax; the extent of the CFD; the operation and maintenance services; the establishment of the appropriations limit for the CFD; and any other matters set forth in the Resolution of Intention. G. All registered voters residing within the boundaries of the proposed CFD and all owners of land within the boundaries of the proposed CFD that would not be exempt from the proposed levy of the Special Tax were allowed to submit written protests to any aspect of the proposals contained in the Resolution of Intention and were permitted to withdraw their protests before the close of the Public Hearing. H. Notice of Public Hearing was published in the Sacramento Bulletin, and a proof of publication is on file with the City Clerk. BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS: Section 1. Section 2. Section 3. The City Council finds that the statements in the Background are true. Except to the extent inconsistent with this resolution, the Resolution of Intention is reaffirmed, and its provisions and findings are, to that same extent, incorporated herein by this reference. The City Council accepts the proof of publication of the Notice of Public Hearing and finds, based thereon, that proper notice of the Public Hearing has been given in accordance with the Act and that the Public Hearing was conducted with proper and legal notice in all respects. Resolution 2017-0105 March 21, 2017 Page 2 of 38
Section 4. Section 5. Section 6. Section 7. The City Council finds and determines that at the close of the Public Hearing written protests, if any, to the establishment of the CFD; the levy of the Special Tax; the extent of the CFD; the services described in the Resolution of Intention; the establishment of the appropriations limit for the CFD; or any other matters contained in the Resolution of Intention were submitted by fewer than 50% of the registered voters residing within the CFD, by fewer than six of the registered voters residing within the CFD or by fewer than the owners of one-half or more of the area of land proposed to be within the CFD not exempt from the special tax, whichever is more. The City Council also finds that, at the close of the Public Hearing, the written protests, if any, were submitted by the owners of less than one-half of the area of land in the territory proposed to be included in the CFD and not exempt from the Special Tax. Thus, finding that it is not precluded by the Act from proceeding further in this matter, the City Council hereby orders and determines that it has considered, and that it overrules, all protests to the following: the establishment of the CFD; the levy of the Special Tax; the extent of the CFD; the services described in the Resolution of Intention; the establishment of the appropriations limit for the CFD; and any other matters contained in the Resolution of Intention that may have been submitted. The City Council finds and determines that the services funded by the CFD are necessary to meet increased demands placed upon the City as the result of development and rehabilitation occurring in and around the CFD. The services authorized to be funded by and through the CFD are those shown in Exhibit A to the Hearing Report attached to this resolution (the Authorized Services ). The RMA, including the maximum annual Special Tax, is set forth in Exhibit B of the Hearing Report attached to this resolution. The RMA provides sufficient detail to allow each landowner or resident within the CFD to estimate the maximum amount the landowner or resident will have to pay. The City Council finds that the RMA does not in any way exceed the proposed rate and method of apportionment of the Special Tax described in the Resolution of Intention. If the election referred to in Section 12 results in the approval of the authorizations of this resolution, then upon recordation of a Notice of Special Tax Lien as required by Streets and Highways Code section 3114.5, a continuing lien to secure each levy of the Special Tax will attach to all nonexempt real property in the CFD, which lien will continue in force and effect until the Special Tax obligation the lien cancelled in accordance with law or until collection of the Special Tax ceases and a Notice of Cessation of Special Tax is recorded in accordance with section 53330.5 of the Act. If a streetcar construction contract has not been executed within five years of the election referred to in Section 12, the City will record a Notice of Cessation of Special Tax in accordance with section 53330.5 of the Act. Resolution 2017-0105 March 21, 2017 Page 3 of 38
Section 8. Section 9. Except where funds are otherwise available, and subject to the limits described in the RMA, a Special Tax will be levied annually within the CFD in an amount sufficient to pay for the operation and maintenance and related services to be provided with the district under the Act. The City will levy the special tax only after a streetcar construction contract has been entered that includes light rail track and infrastructure on H Street and the removal of light rail boarding infrastructure on K Street. The Special Tax will be collected through the regular County of Sacramento secured property-tax bills and will be subject to the same enforcement mechanism and the same penalties and interest for late payment as regular ad valorem property taxes; however, the City Council reserves the right to use any other lawful means of billing, collecting, and enforcing the Special Tax, including direct billing, supplemental billing, and, when lawfully available, judicial foreclosure of the Special Tax lien. Section 10. Under Government Code section 53340.1, the Special Tax will be levied on leasehold or possessory interests in property owned by a public agency (which property is otherwise exempt from the Special Tax), to be payable by the owner of the leasehold or possessory interests in the property. Section 11. Under Government Code section 53325.7, and subject to the voter approval requirement in that section, the appropriations limit, as defined by subdivision (h) of section 8 of article XIIIB of the California Constitution, for fiscal year 2017/18 for the CFD, subject to adjustment as provided therein, is established in the amount of $4 million. Section 12. The City Council will submit the authorizations of this resolution to the qualified electors of the CFD in a special mailed-ballot election. Based on findings to be formally made by the City Council in a resolution to be adopted on this date calling the special mailed-ballot election, to which reference is made for further particulars, the qualified electors of the CFD are the property owners or their authorized representatives, with each voter having one vote, in accordance with section 53326(b) of the Act. Section 13. The City Council finds that the public interest will not be served by allowing the owners of property in the CFD to enter into a contract under Government Code section 53329.5(a) to do the work to be funded under the Act. Section 14. The Manager of the Public Improvement Financing Division of the City Finance Department, 915 I Street, City Hall, Third Floor, Sacramento, CA 95814, will be responsible for annually preparing, or causing to be prepared, the roll of Special Tax levies on the parcels within the CFD (identified by Sacramento County Resolution 2017-0105 March 21, 2017 Page 4 of 38
Assessor s parcel numbers) and will be responsible for estimating future Special Tax levies as required by Government Code section 53340.2. Section 15. The City Council finds and determines that all proceedings conducted and approved by the City Council with respect to the establishment of the CFD, up to and including the adoption of this resolution and the other resolutions adopted this date in connection with the CFD, are valid and in conformity with the requirements of the Act. This determination is final and conclusive for all purposes and is binding upon all persons. Accordingly, the City Council finds, determines, and orders that the CFD is hereby established with all of the authorities described and set forth in this resolution, the exercise of which is subject only to the election. Section 16. This resolution takes effect when adopted. Table of Contents: Exhibit A-Boundary Map Exhibit B-Hearing Report Adopted by the City of Sacramento City Council on March 21, 2017, by the following vote: Ayes: Members Ashby, Carr, Guerra, Harris, Jennings, Schenirer, Warren and Mayor Steinberg Noes: None Abstain: Member Hansen (recusal) Absent: None Attest: e-signed by Shirley Concolino on 2017-03-30 02:31:59 GMT City Clerk, MMC March 30, 2017 The presence of an electronic signature certifies that the foregoing is a true and correct copy as approved by the Sacramento City Council. Resolution 2017-0105 March 21, 2017 Page 5 of 38
Exhibit A Boundary Map Resolution 2017-0105 March 21, 2017 Page 6 of 38
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Hearing Report Sacramento Streetcar CFD No. 2017-01 Prepared for: City of Sacramento Prepared by: Economic & Planning Systems, Inc. March 2017 EPS #162049 Resolution 2017-0105 March 21, 2017 Page 9 of 38
Table of Contents 1. INTRODUCTION... 1 Background... 1 Purpose of this Report... 1 Organization of this Report... 2 2. CFD PARCELS... 3 3. DISCUSSION OF AUTHORIZED SERVICES AND COSTS... 6 Authorized Services... 6 Incidental Expenses... 6 Estimated Sources and Uses of Special Taxes for Streetcar O&M... 7 Exhibits Exhibit A: Exhibit B: List of Authorized Services Rate and Method of Apportionment and Manner of Collection of Special Tax List of Map and Tables Map 1 CFD Boundary Map... 4 Table 1 CFD Parcel Characteristics... 5 Table 2 CFD Authorized Service Costs and Sources of Funding... 8 Resolution 2017-0105 March 21, 2017 Page 10 of 38
1. INTRODUCTION Background The City of Sacramento and the City of West Sacramento plan to construct a new Streetcar system that will offer a convenient mode of transportation connecting West Sacramento with Downtown and Midtown Sacramento. At nearly 3.3 miles in length, the Streetcar system will connect the following key destinations in both cities: In Sacramento, the Streetcar will serve the Sacramento Valley Station, the State Capitol, the Sacramento Convention Center, Old Sacramento, Midtown, Sacramento Community Theater, and the new Golden 1 Center. In West Sacramento, the Streetcar will serve the Bridge District, the Washington District, Raley Field, and the Civic Center. Public funding for construction of the Streetcar system will be provided by the Federal Government, State of California, City of Sacramento, City of West Sacramento, and County of Sacramento. The Streetcar project is estimated to cost approximately $200 million to construct. The annual estimated operations and maintenance (O&M) costs for the Streetcar system is $5.1 million in the initial year of operations. The City of Sacramento (City) is seeking to form a Mello-Roos Community Facility District (CFD) to fund approximately $2.0 million of the estimated annual O&M costs. At this funding level, the City of West Sacramento is anticipated to contribute $1.0 million annually towards the O&M costs. The $2.1 million balance is expected to come from a combination of funding from fare-box revenue, sponsorships, and other sources. The CFD would be formed on certain parcels located in Downtown and Midtown Sacramento directly benefiting from enhanced transit services to these locations. Purpose o f t his Report The purpose of this report is to present a discussion of Sacramento Streetcar CFD No. 2017-01 (CFD No. 2017-01 or CFD) of the City. CFD No. 2017-01 will contribute approximately $2.0 million to funding O&M for the Streetcar system. The City Council approved the Resolution of Intention (ROI) to form the CFD on January 24, 2017. The public hearing to consider formation of the CFD will be held on March 7, 2017. This report serves as the Hearing Report required by the Mello-Roos Community Facilities Act of 1982 and is to be made available before the public hearing. It discusses the structure of CFD No. 2017-01, including the services to be funded and the Rate and Method of Apportionment and Manner of Collection of Special Tax (RMA), by which the annual special tax levy is calculated for each taxable parcel. Economic & Planning Systems, Inc. 1 F:\Active Projects\162000\162049 Sacramento Streetcar CFD\Reports\162049 rd03.docx Resolution 2017-0105 March 21, 2017 Page 11 of 38
Sacramento Streetcar CFD No. 2017 01 Hearing Report March 2017 O r ganizatio n o f t his Report In addition to the introduction in this Chapter 1, Chapter 2 provides a list of parcels to be included in CFD No. 2017-01 at formation. Chapter 3 describes the authorized services of the CFD and annual CFD costs and funding sources. Finally, Chapter 4 describes the RMA used to levy the annual special tax authorized by formation of CFD No. 2017-01. Economic & Planning Systems, Inc. 2 F:\Active Projects\162000\162049 Sacramento Streetcar CFD\Reports\162049 rd03.docx Resolution 2017-0105 March 21, 2017 Page 12 of 38
2. CFD PARCELS Parcels to be included within the boundary of the CFD are shown in Map 1. The parcels selected for inclusion within the initial CFD boundaries were selected based on their proximity to the Streetcar system and for the nature of the land uses on those parcels that are perceived to receive benefits from enhanced transit choices for their tenants and visitors. Table 1 shows characteristics of the parcels included within the CFD boundaries at ROI. Parcels are assigned to zones based on proximity to Streetcar lines, with Zone 1 being adjacent to lines and Zone 4, the farthest from lines. City staff assigned parcels to zones. The Golden 1 Center is assigned to both Zones 1 and 2, given its location and relative proximity to Streetcar lines. The Railyards project is located in Zones 3 and 4. The building area and land area (in square feet) were identified for each parcel. There are a total of 366 parcels within the initial boundaries of the CFD. The total land area of the CFD is approximately 7.3 million square feet, which is approximately 168 acres. There is a total of approximately 14.5 million square feet of vertical development on these parcels. City staff categorized parcels into general categories. Only nonresidential development and nonresidential-zoned parcels are included in the CFD at formation. Economic & Planning Systems, Inc. 3 F:\Active Projects\162000\162049 Sacramento Streetcar CFD\Reports\162049 rd03.docx Resolution 2017-0105 March 21, 2017 Page 13 of 38
Map 1 Exhibit A Sacramento Streetcar Community Facilities District No. 2017-01 Sacramento River JIBBOOM ST BERCUT DR 3RD ST 5TH ST 6TH ST TAX ZONE 4 NORTH B ST 7TH ST 8TH ST 9TH ST 10TH ST 11TH ST 12TH ST 13TH ST 14TH ST 15TH ST 16TH ST TAX ZONE 3 TAX ZONE 2 TAX ZONE 1 TAX ZONE 2 TAX ZONE 3 NORTH 12TH ST 17TH ST 18TH ST 19TH ST 1 inch = 1,000 feet µ 20TH ST 0 500 1,000 2,000 Feet 21ST ST Area within CFD 22ND ST N ST O ST P ST Q ST 23RD ST CAPITOL AVE K ST L ST I ST J ST C ST D ST E ST F ST G ST H ST Resolution 2017-0105 March 21, 2017 Page 14 of 38
Table 1 Streetcar CFD No. 2017-01 CFD Parcels Characteristics Zone 1 Zone 2 Zone 3 Multiple Zones Totals No. of Building Land Building Land Building Land Building Land Building Land Parcel Use Description Parcels Area Area Area (SF) Area (SF) Area (SF) Area (SF) Area (SF) Area (SF) Area (SF) Area (SF) 5 Golden 1 Center Parcel 1 0 0 0 0 0 0 697,988 245,678 697,988 245,678 Condominium Parcels Commercial Condominium Parcels 25 746,039 146,631 175,995 121,608 0 0 0 0 922,034 268,239 Commercial Condominium Parcels, Parking 1 0 20,259 0 0 0 0 0 0 0 20,259 Nonresidential 212 5,614,348 1,949,800 1,722,141 968,529 633,178 509,334 0 843,758 7,969,667 4,271,421 Condominium 1 0 0 0 0 6,400 6,449 0 0 6,400 6,449 Parking Garage 7 0 57,680 0 62,600 0 0 0 0 0 120,280 Commercial Parking Lot 1 0 0 0 0 0 29,360 0 0 0 29,360 Park Parking Garage 2 85,740 32,041 0 0 0 22,400 0 0 85,740 54,441 Part Parking Garage 3 364,983 42,400 0 0 0 0 0 0 364,983 42,400 Part Parking 6 71,010 43,164 119,873 69,632 15,667 12,894 0 0 206,550 125,690 Parking Lot 73 0 245,730 0 266,039 0 122,117 0 0 0 633,886 Parking Lot, Roof 1 53,000 27,200 0 0 0 0 0 0 53,000 27,200 Part Parking Garage 20 1,494,993 411,656 2,018,211 566,036 572,659 104,979 0 0 4,085,863 1,082,671 Undeveloped 1 0 0 0 0 0 0 0 290,110 0 290,110 Non-Profit 2 28,750 38,400 0 0 0 12,632 0 0 28,750 51,032 No Designation 1 0 0 0 23,218 0 0 0 0 0 23,218 Exempt, City Government 9 42,122 46,400 0 0 0 0 0 0 42,122 46,400 Totals 366 8,500,985 3,061,361 4,036,220 2,077,662 1,227,904 820,165 697,988 1,379,546 14,463,097 7,338,734 Source: City of Sacramento "parcel_char" Prepared Resolution by EPS 3/6/2017 2017-0105 March 21, 2017 Page 162049 15 of Model 38
3. DISCUSSION OF AUTHORIZED SERVICES AND COSTS This chapter describes the authorized services eligible to be funded through the CFD with the special taxes levied under the CFD. This chapter also discusses costs associated with the provision of such services. Exhibit A in this report is the List of Authorized Services. A ut horized Ser v ices The types of services to be financed by CFD No. 2017-01 are the maintenance and operation of any real property or other tangible property with an estimated useful life of 5 or more years that is owned by the City or other eligible public agencies, such as a Joint Powers Authority (JPA) between the City and other eligible public agencies. Authorized services are broadly defined by the categories below: Vehicle Operations Vehicle Maintenance Non-vehicle Maintenance General Administration Items to be maintained and operated include tracks, streetcar vehicles, streetcar stations and platforms, related sidewalk and roadway infrastructure, structural and streetscape improvements, maintenance facilities, facilities for providing electricity to the system (including overhead wires and utility substations) and related infrastructure, traffic signalization and related systems, signage, wayfinding, and lighting and landscaping related thereto, and electronic and mechanical systems and programming therefor. I ncident a l Expenses It is anticipated the following incidental expenses may be incurred in the proposed legal proceedings for formation of the CFD, oversight, or performance of eligible maintenance activities and will be payable from the proceeds of the Special Tax: Special Tax Consultant Services City, Participating District Staff Review, Oversight, and Administrative Services Legal Counsel Services Financial Advisor Services Special Tax Administrator Services Publishing, Mailing, and Posting of Notices Recording Fees Governmental Notification and Filing Fees Disclosure Services Economic & Planning Systems, Inc. 6 F:\Active Projects\162000\162049 Sacramento Streetcar CFD\Reports\162049 rd03.docx Resolution 2017-0105 March 21, 2017 Page 16 of 38
Sacramento Streetcar CFD No. 2017 01 Hearing Report March 2017 The expenses of certain recurring services pertaining to the CFD may be included in each annual special tax levy, and these expenses are described in the definition of the term Administrative Expenses, as set forth in the RMA attached to this report (Exhibit B). The foregoing enumeration shall not be regarded as exclusive and shall be deemed to include any other incidental expenses of a like nature, which may be incurred from time to time with respect to the CFD. Estimated Sources and Uses of Special Taxes fo r S treetcar O&M The amounts shown in Table 2 are estimates of the proposed sources for funding the costs of O&M of the Streetcar system. These costs were provided by the City. It is estimated that the operational costs in the initial year of full operations will be approximately $5.1 million. These costs will increase over time as wages paid to employees increase and as costs of materials and energy increase. Economic & Planning Systems, Inc. 7 F:\Active Projects\162000\162049 Sacramento Streetcar CFD\Reports\162049 rd03.docx Resolution 2017-0105 March 21, 2017 Page 17 of 38
Table 2 Streetcar CFD No. 2017-01 CFD Authorized Service Costs and Sources of Funding Item Amount Estimated Initial Year Streetcar System Operating Costs [1] $5,100,000 Sources of Funding City of West Sacramento [1] $1,000,000 Funding from Fare-Box Revenue and Sponsors [1] $2,100,000 CFD Special Tax Revenues $2,000,000 Total Funding Sources $5,100,000 [1] Provided by the City of Sacramento. "cfd_costs" Prepared Resolution by EPS 2017-0105 3/6/2017 March 21, 8 2017 Page 162049 18 of Model 38
EXHIBITS: Exhibit A: Exhibit B: List of Authorized Services Rate and Method of Apportionment and Manner of Collection of Special Tax Resolution 2017-0105 March 21, 2017 Page 19 of 38
EXHIBIT A: List of Authorized Services Resolution 2017-0105 March 21, 2017 Page 20 of 38
EXHIBIT A SACRAMENTO STREETCAR COMMUNITY FACILITIES DISTRICT NO. 2017-01 LIST OF AUTHORIZED SERVICES STREETCAR OPERATIONS AND MAINTENANCE The types of services to be financed by CFD No. 2017-01 are the maintenance and operation of any real property or other tangible property with an estimated useful life of five or more years that is owned by the City or other eligible public agencies, such as a JPA between the City and other eligible public agencies. Items to be maintained and operated include tracks, streetcar vehicles, streetcar stations and platforms, related sidewalk and roadway infrastructure, structural and streetscape improvements, maintenance facilities, facilities for providing electricity to the system (including overhead wires and utility substations) and related infrastructure, traffic signalization and related systems, signage, wayfinding, and lighting and landscaping related thereto, electronic and mechanical systems and programming therefor. More specifically, CFD No. 2017-01 may finance the following items: Vehicle Operations All activities associated with vehicle operations, including the following items: Transportation administration and support Vehicle movement control Scheduling of transportation operations Vehicle operation Ticketing and fare collection System security Vehicle Maintenance All activities associated with revenue and non-revenue (service) vehicle maintenance, including but not limited to the following items: Administration Inspection and maintenance Painting Servicing (cleaning, fueling, etc.) vehicles In addition, vehicle maintenance includes repairs of revenue vehicles. Resolution 2017-0105 March 21, 2017 Page 21 of 38
Non-vehicle Maintenance All activities and administration associated with facility maintenance, including the following: Administration Operation of electric power facilities Repair and maintenance of: Buildings, grounds and equipment Vehicle movement control systems Fare collection and counting equipment Structures, tunnels and subways Roadway and track Passenger stations including the accompanying streetscape, sidewalk, lighting infrastructure, etc Communication systems General administration buildings, grounds and equipment Electric power facilities General Administration All activities associated with the general administration of the Streetcar. General Administration includes the following sub-functions: Transit service development Safety Personnel administration Legal services Insurance Data processing Finance and accounting Purchasing and stores Engineering Real estate management Office management and services Customer services Promotion Market research Planning FORMATION, ADMINISTRATIVE, AND INCIDENTAL EXPENSES Resolution 2017-0105 March 21, 2017 Page 22 of 38
It is anticipated that the following incidental expenses may be incurred in the proposed legal proceedings for formation of the Community Facilities District, oversight or performance of eligible maintenance activities, and will be payable from the proceeds of the Special Tax: Special tax consultant services City, Participating District staff review, oversight and administrative services Legal Counsel services Financial advisor services Special tax administrator services Publishing, mailing, and posting of notices Recording fees Governmental notification and filing fees Disclosure services The expenses of certain recurring services pertaining to the Community Facilities District may be included in each annual special tax levy, and these expenses are described in the definition of the term Administrative Expenses as set forth in the Rate and Method of Apportionment of Special Tax attached hereafter as Exhibit D. The foregoing enumeration shall not be regarded as exclusive and shall be deemed to include any other incidental expenses of a like nature which may be incurred from time to time with respect to the Community Facilities District. Resolution 2017-0105 March 21, 2017 Page 23 of 38
EXHIBIT B: Rate and Method of Apportionment and Manner of Collection of Special Tax Resolution 2017-0105 March 21, 2017 Page 24 of 38
EXHIBIT D Sacramento Streetcar Community Facilities District No. 2017-01 City of Sacramento, County of Sacramento, State of California 1. Basis of Special Tax Levy RATE, METHOD OF APPORTIONMENT, AND MANNER OF COLLECTION OF SPECIAL TAX Acting under the Mello-Roos Community Facilities Act of 1982, the City of Sacramento will levy and collect a special tax on land in the Sacramento Streetcar Community Facilities District No. 2017-01, City of Sacramento, County of Sacramento, State of California, by applying the appropriate rate as described below. 2. Definitions Act means the Mello-Roos Community Facilities Act of 1982, as amended, set out as Government Code section 53311 and following. Administrative Expenses means the actual or reasonably estimated costs directly related to the formation and administration of CFD No. 2017-01, including, the costs of computing the Special Tax and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Tax (whether by the County or otherwise); the costs to the City, CFD No. 2017-01, or any designee thereof of complying with City or CFD No. 2017-01 disclosure requirements; the costs associated with responding to public inquiries regarding the Special Tax; the costs of the City, CFD No. 2017-01, or any designee thereof related to an appeal of the Special Tax; and the City s annual administration fees and third-party expenses. Annual Costs means, for any Fiscal Year, an amount of $2,000,000 in Authorized Services costs and Administrative Expenses in the Base Year, which amount shall be increased each Fiscal Year thereafter by a percentage equal to the Special Tax Escalation Factor, excluding any available earnings on, or surplus balances in, the Special Tax fund for the CFD; and any other available revenues of the City that relate to the CFD and may be lawfully used to pay Annual Costs. Annual Special Tax means the Land Special Tax and the Developed Special Tax levied on a Taxable Parcel and collected each Fiscal Year. Assessor s Parcel Number means the number assigned by the County Assessor for any Parcel, based on the equalized tax rolls of the County as of July 1 of each Fiscal Year. AT&T Parcel means the parcel containing the switching station at 1407 J Street (APN 006-0056-014-0000). Economic & Planning Systems, Inc. (EPS) D-1F:\Active Projects\162000\162049 Sacramento Streetcar CFD\Rate and Method\162049 Streetcar RMA 01-18-17.docx Resolution 2017-0105 March 21, 2017 Page 25 of 38
Sacramento Streetcar Community Facilities District No. 2017-01 Rate, Method of Apportionment, and Manner of Collection of Special Tax January 18, 2017 Authorized Services means those services funded with Special Tax revenues, as identified in the resolution of formation for the CFD. Base Year means the Fiscal Year ending June 30, 2018. Building Area means the covered-and-enclosed area within the perimeter of a building with a Development Approval: For Non-Residential Parcels, Building Area means chargeable covered and enclosed space under Government Code section 65995(b)(2). For a Non-Residential Condominium Unit, the Building Area means the habitable square footage of the Non-Residential Condominium Unit specified in the Development Plan for the Non-Residential Condominium Unit. The Building Area measurement shall be determined by the CFD Administrator using reasonable discretion. Building Permit means a permit issued by the City for the construction of Non-Residential Uses, and other permitted uses on a Taxable Parcel. CFD or CFD No. 2017-01 means the Sacramento Streetcar Community Facilities District No. 2017-01, City of Sacramento, County of Sacramento, State of California. CFD Administrator means the City official or officials, or designee thereof, responsible for determining the Annual Costs and providing for the levy and collection of the Special Tax. Charitable Non-Profit Organization means a non-profit organization that is exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code. Charitable Non-Profit Parcel means a Parcel owned by a Charitable Non-Profit Organization. City means the City of Sacramento, California. Commercial-Parking Area means the area of a Taxable Parcel designated for Commercial Parking. For a parking structure, the Commercial-Parking Area means the total floor square footage designated on the Development Plan for Commercial Parking. Commercial Parking means there is an hourly, daily, monthly, or other fee or charge to use the area designated for parking. Condominium Building means non-residential, commercial, or mixed-use building consisting of two or more units that share common walls and are offered as for-sale units, including such buildings that meet the definition of a condominium in Civil Code section 1351. Council means the Sacramento City Council acting for the CFD under the Act. County means the County of Sacramento, California. Economic & Planning Systems, Inc. (EPS) D-2F:\Active Projects\162000\162049 Sacramento Streetcar CFD\Rate and Method\162049 Streetcar RMA 01-18-17.docx Resolution 2017-0105 March 21, 2017 Page 26 of 38
Sacramento Streetcar Community Facilities District No. 2017-01 Rate, Method of Apportionment, and Manner of Collection of Special Tax January 18, 2017 County Exempt Percentage means the percent of assessed value that is not included for calculating ad valorem taxes for certain Parcels owned by Charitable Non-Profit Organizations. Destroyed means partial or whole elimination of Building Area on a Parcel at a property owner s discretion or any means including through natural disaster but excluding elimination of Building Area or land area in whole or in part through eminent domain. Destroyed Parcel means a Developed Parcel on which Building Area has been Destroyed. Developed Parcel means, for any Fiscal Year, a Taxable Parcel with one or more Development Approvals as of June 30 of the previous Fiscal Year. If Building Area is Destroyed on a Developed Parcel, thereby reducing the Building Area assigned to the Parcel, then the Developed Parcel will be reclassified as a Destroyed Parcel. Developed Special Tax means the Maximum Annual Special Tax assigned to a Developed Parcel based on the Non-Residential Use Building Area, and the Commercial-Parking Area. Developed Special Tax Rate means the maximum annual rate of Special Tax per Building Area or Commercial-Parking Area for a Non-Residential Use used to determine the Developed Special Tax for a Taxable Parcel. The Developed Special-Tax Rates are shown in Attachment 2. Development Approval means any of the following: a Building Permit issued by the City, conditional use permit, project entitlement, or any ministerial or discretionary action taken by the City in furtherance of land development of any form; and, for a public agency s building project that does not require a City building permit, a request by the agency to connect to Cityprovided water or sewer services. Development Records means reports, studies, and permits, by or from the City or another public agency, that provide information about the development status of a Parcel, including development plans, tentative maps, parcel maps, final subdivision maps, building permits, and records of survey that have been approved or recorded. Development Plan means a condominium plan, apartment plan, site plan, or other development plan that identifies such information as type of building, acreage, square footage of buildings, parking areas, and number of units approved to be developed on Taxable Parcels. Fiscal Year means the period starting July 1 and ending the following June 30. Golden 1 Center Plaza means the Assessor Parcel Number 006-0370-015-0000, which comprises the plaza area outside of, and around, the Golden 1 Center Parcel. The Golden 1 Center Plaza is a quasi-public space open to the public as the David J Stern Walk and operates as a public gathering space with public art features and park-like gathering areas. Golden 1 Center Parcel means the Golden 1 Center that is located on Assessor Parcel Number 006-0370-012-0000. Economic & Planning Systems, Inc. (EPS) D-3F:\Active Projects\162000\162049 Sacramento Streetcar CFD\Rate and Method\162049 Streetcar RMA 01-18-17.docx Resolution 2017-0105 March 21, 2017 Page 27 of 38
Sacramento Streetcar Community Facilities District No. 2017-01 Rate, Method of Apportionment, and Manner of Collection of Special Tax January 18, 2017 Include and its variants are terms of enlargement rather than of limitation. For example, includes means includes but not limited to, and including means including but not limited to. Land-Area Designation means the assignment to a Parcel (or a portion of a Parcel) of one or more of the following designations: Public-Use Land Area, Taxable Land Area, Commercial- Parking Area, and Total Land Area. Land Special Tax means the Maximum Annual Special Tax assigned to a Taxable Parcel based on the Taxable Land Area. Land Special Tax Rate means the maximum rate of Special Tax per Taxable Land Area used to determine the Land Special Tax for a Taxable Parcel. Maximum Annual Special Tax means the maximum amount of the Developed Special Tax and Land Special Tax that could be levied in a Fiscal Year on a Taxable Parcel. Maximum Annual Special Tax Revenue means the total Maximum Annual Special Tax that may be levied against a group of Taxable Parcels, such as Developed Parcels. Maximum CFD Revenue means the sum of the Maximum Annual Special Tax that may be levied on all Taxable Parcels in the CFD in a Fiscal Year. Mixed-Use Parcel means a Developed Parcel with land uses or a designation of land uses for both Non-Residential Uses and Residential Uses. Non-Residential Condominium Unit means a Non-Residential Use condominium unit in a Condominium Building. Non-Residential Parcel means a Developed Parcel with Development Approval of exclusively Non-Residential Uses. Non-Residential Use means a Parcel with land uses designated for commercial, retail, office, industrial, manufacturing, or other similar non-residential land uses. Non-Residential Uses include Commercial Parking. Parcel means any lot or parcel in the CFD with an assigned Assessor s Parcel Number from the County Assessor, based on the equalized tax rolls of the County as of July 1 of each Fiscal Year. Public Agency means any of the following: the City, the County, a joint powers authority, an agency of the State of California, the State of California, Sacramento or Twin Rivers Unified School District, an agency of the United States, the United States, a special district, or a public utility established under the Municipal Utility District Act. Public Parcel means any Parcel that is owned in its entirety by a Public Agency and is normally exempt from the levy of general ad valorem property taxes under California law, including public streets, schools, parks, public drainage ways, public landscaping, wetlands, greenbelts, Economic & Planning Systems, Inc. (EPS) D-4F:\Active Projects\162000\162049 Sacramento Streetcar CFD\Rate and Method\162049 Streetcar RMA 01-18-17.docx Resolution 2017-0105 March 21, 2017 Page 28 of 38
Sacramento Streetcar Community Facilities District No. 2017-01 Rate, Method of Apportionment, and Manner of Collection of Special Tax January 18, 2017 and public open space. Public Parcels are exempt from the levy of the Special Tax and thus are Tax-Exempt Parcels. Public-Use Property means, for each Fiscal Year, both of the following: Any property within the boundaries of the CFD that was owned by, or irrevocably offered for dedication to, any Public Agency as of June 30 of the previous Fiscal Year, except that any Public Parcel or portion of a Public Parcel leased to a nonexempt person or entity and subject to taxation under Government Code section 53340.1, will be taxed according to its use. Any property within the boundaries of the CFD that was encumbered, as of June 30 of the previous Fiscal Year, by a utility easement making impractical its use for any purpose other than the purpose set forth in the easement. Public-Use Land Area means that portion of a Taxable Parcel that is identified as Public-Use Property. Residential Use means that portion of a Parcel designated by the Administrator for singlefamily or multifamily residential uses. Special Tax means the special tax levied by the City in the CFD in accordance with Act; the Resolution of Intention for the CFD; and this Rate, Method of Apportionment, and Manner of Collection of Special Tax. Special Tax Escalation Factor means the percentage increase in the average annual Consumer Price Index All Urban Consumers for San Francisco-Oakland-San Jose (CPI-U) for the calendar year preceding the Fiscal Year in which the Special Tax will be levied, not to exceed three percent in any Fiscal Year. Subdivision or Subdivided means a division of a Parcel into two or more Parcels in accordance with the Subdivision Map Act, under Government Code section 66410 et. seq. A Subdivision may also include the merging of two or more Parcels to create one or more new Parcels. Tax Category means the categories of taxable land uses shown in Attachment 2. Tax-Collection Schedule means the document prepared by the CFD Administrator for the County Auditor-Controller to use in levying and collecting the Special Taxes each Fiscal Year. Taxable Land Area refers to the Total Land Area of a Taxable Parcel less the Public-Use Land Area. Taxable Parcel means any Parcel that is not a Tax-Exempt Parcel. Tax-Exempt Parcel means a Parcel not subject to the Special Tax. Tax-Exempt Public Parcels are Tax-Exempt Parcels. Common areas owned by homeowner s associations or propertyowner associations are Tax-Exempt Parcels. Economic & Planning Systems, Inc. (EPS) D-5F:\Active Projects\162000\162049 Sacramento Streetcar CFD\Rate and Method\162049 Streetcar RMA 01-18-17.docx Resolution 2017-0105 March 21, 2017 Page 29 of 38
Sacramento Streetcar Community Facilities District No. 2017-01 Rate, Method of Apportionment, and Manner of Collection of Special Tax January 18, 2017 Tax-Exempt Public Parcel means any Public Parcel or Public-Use Property. Notwithstanding the foregoing, Tax-Exempt Public Parcel does not include a leasehold or other possessory interest that is in Public Use Property and is granted to a nonexempt person or entity. Tax Zone means one of the four Tax Zones shown on Attachment 1. Each Taxable Parcel is assigned to Tax Zone 1, Tax Zone 2, Tax Zone 3, or Tax Zone 4 based on the proximity of the Parcel to the streetcar track alignment. Total Land Area means the total square footage of a Parcel. Undeveloped Parcel means a Taxable Parcel that is not a Developed Parcel. Utility Parcel means a Parcel owned by a public utility whether the public utility is a governmental entity or a private corporation. Any portion of a Utility Parcel that has a Non- Residential Use or Commercial Parking Area is subject to the Land Special Tax and the Developed Special Tax. 3. Duration of the Special Tax Parcels in the CFD will remain subject to the Special Tax through Fiscal Year 2041-42. No Special Tax will be levied or collected after Fiscal Year 2041-42, except that any delinquent Special Tax levied in, or before, that year may be collected in subsequent years. If the Special Tax ceases to be levied, then the City will direct the County Clerk-Recorder to record a Notice of Cessation of Special Tax stating that the obligation to pay the Special Tax has ceased and that the lien imposed by the Notice of Special Tax Lien is extinguished, and identifying the book and page of the Book of Maps of Assessment and Community Facilities Districts where the map of the boundaries of the CFD is recorded. 4. Assignment of Land- Area Designations and Building Area to Parcels A. Assignment of Land Area and Tax Zones. Parcels are assigned applicable Land-Area Designations. Parcels within a single Tax Zone or within multiple Tax Zone are assigned to the appropriate Tax Zone or Zones. As Parcels are Subdivided or combined, the CFD Administrator will assign the Tax Zones and Land-Area Designations to all successor Parcels using available Development Records. Utility Parcels and the AT&T Parcel are assigned Taxable Land Area based on the amount of land area used for Non-Residential Uses. The Golden 1 Center Parcel and Golden 1 Center Plaza are not assigned a Land-Area Designation because of the unique quasi-public nature of the Parcels. Therefore these Parcels are not subject to the Land Special Tax. Economic & Planning Systems, Inc. (EPS) D-6F:\Active Projects\162000\162049 Sacramento Streetcar CFD\Rate and Method\162049 Streetcar RMA 01-18-17.docx Resolution 2017-0105 March 21, 2017 Page 30 of 38
Sacramento Streetcar Community Facilities District No. 2017-01 Rate, Method of Apportionment, and Manner of Collection of Special Tax January 18, 2017 Each Non-Residential Condominium Unit is assigned its proportionate share of the Total Land Area of the Parcel based on the ratio of the square footage of the Non-Residential Condominium Unit to the square footage of the Parcel s Building Area. For Mixed Use Parcels the Taxable Land Area assigned to the Parcel shall be the Non-Residential portion s proportionate share of the Total Land Area. In addition, the CFD Administrator must update and keep current all applicable Land-Area Designations. B. Assignment of Building Area and Commercial-Parking Area to Non-Residential Parcels, the Golden 1 Center Parcel and Utility Parcels. Taxable Parcels and Utility Parcels are assigned a Building Area and Commercial-Parking Area based on Assessor s records and other available Development Records. As non-residential development projects are processed, the CFD Administrator must obtain and assign the Building Area and Commercial-Parking Area for all buildings identified in the Development Plan. The Building Area and Commercial-Parking Area will be adjusted as a result of a Development Approval for expansion of a non-residential building. For a surface parking lot, the Commercial- Parking Area is deemed to be the total land area used for Commercial Parking. For a building built over multiple Parcels, the CFD Administrator will assign each Parcel a proportional share of the Building Area. C. Assignment of Building Area and Commercial-Parking Area to Mixed-Use Parcels and Charitable Non-Profit Parcels. Mixed-Use Parcels and Charitable Non-Profit Parcels are assigned a Building Area and Commercial-Parking Area for the Non-Residential Use and Residential Use portion of the Mixed- Used Parcel or Charitable Non-Profit Parcel based on Assessor s records or other available Development Records. Any Residential Use shall not be assigned a Special Tax unless subject to Section 4.H. D. Conversion of a Tax-Exempt Parcel to a Taxable Parcel. A Tax-Exempt Parcel that is converted to a Taxable Parcel will become subject to the Special Tax as assigned by the CFD Administrator using the provisions of this RMA. If a Tax-Exempt Parcel that is converted to a Taxable Parcel would be classified as a Mixed Use Parcel, then only the Building Area for the Non-Residential Use on that Mixed Use Parcel shall be subject to the Special Tax. E. Public Use Parcels with Leasehold or Possessory Interests. Any leasehold or possessory interest that is in a Public Parcel and granted to a nonexempt person or entity will be subject to the Special Tax. According to the provisions in this RMA, the CFD Administrator shall assign the Special Tax to such a Parcel with leasehold or possessory interest similar to the way the CFD Administrator would as if the Parcel were held in fee simple title by a private entity. Economic & Planning Systems, Inc. (EPS) D-7F:\Active Projects\162000\162049 Sacramento Streetcar CFD\Rate and Method\162049 Streetcar RMA 01-18-17.docx Resolution 2017-0105 March 21, 2017 Page 31 of 38
Sacramento Streetcar Community Facilities District No. 2017-01 Rate, Method of Apportionment, and Manner of Collection of Special Tax January 18, 2017 F. Taxable Parcels Acquired by a Public Agency. A Taxable Parcel acquired by a Public Agency after the CFD is formed will be reclassified as a Tax-Exempt Parcel, unless the Parcel is subject to a leasehold interest by a private entity. G. Conversion of a Non-Residential Use to a Residential Use. A Taxable Parcel that is a Non-Residential Use Parcel that converts to a Residential Use shall remain a Taxable Parcel. The Taxable Parcel is still subject to the Maximum Annual Special Tax originally assigned to the Parcel. If the conversion of the Non-Residential Parcel results in the creation of unique Assessor s Parcel Number for each dwelling unit, the Maximum Annual Special Tax assigned to the Non-Residential Parcel is divided by the number of converted square feet and assigned to each dwelling unit as proportionate share of the square footage to determine the Maximum Annual Special Tax for each Assessor s Parcel Number resulting from the conversion from Non-Residential Use. H. Conversion of a Non-Residential Use Parcel to a Mixed-Use Parcel. A Taxable Parcel that is a Non-Residential Use Parcel that converts to a Mixed-Use Parcel shall remain a Taxable Parcel. The Taxable Parcel is still subject to the Maximum Annual Special Tax originally assigned to the Parcel. The Maximum Annual Special Tax shall be apportioned to the Residential Uses and Non-Residential Uses Proportionately based on the Building Area of each use as compared to the total Building Area on the Parcel. If the conversion of the Non- Residential Use Parcel results in the creation of unique Assessor s Parcel Numbers for Residential Use, the Maximum Annual Special Tax assigned to the Residential Use is divided by the number of Residential Use square feet and assigned to each dwelling unit as proportionate share of the Residential Use square footage to determine the Maximum Annual Special Tax for each Assessor s Parcel Number resulting from the conversion from Non-Residential Use. If the conversion of the Non-Residential Use Parcel results in the creation of unique Assessor s Parcel Numbers for Non-Residential Use, the Maximum Annual Special Tax assigned to the Non- Residential Use is divided by the number of Non-Residential Use square feet and assigned to each dwelling unit as proportionate share of the Non-Residential Use square footage to determine the Maximum Annual Special Tax for each Assessor s Parcel Number resulting from the conversion of a portion of the Parcel from Non-Residential Use to Residential Use. I. Taxable Parcels Acquired by Charitable Non-Profit Organization. A Taxable Parcel acquired by a Charitable Non-Profit Organization after the CFD is formed will remain subject to the Maximum Annual Special Tax that applied on the day before the acquisition, subject to the following: if additional Building Area is added to the Parcel after the acquisition, then the Maximum Annual Special Tax may increase if the calculation of the Maximum Annual Special Tax pursuant to Section 5.E exceeds the Maximum Annual Special Tax that applied on the day before the acquisition. J. Building Area Reduction In the Case of Eminent Domain. Economic & Planning Systems, Inc. (EPS) D-8F:\Active Projects\162000\162049 Sacramento Streetcar CFD\Rate and Method\162049 Streetcar RMA 01-18-17.docx Resolution 2017-0105 March 21, 2017 Page 32 of 38