12-21-2004 - Election on the Levy of Special Taxes by CSS Community Facilities District, & Certification of Results Thereofi �, : • City of West Covina
Q3 Memorandum
- ! TO: Andrew G. Pasmant, City Manager/Executive Director
and City Council / CDC Governing Board AGENDA
ITEM NO. E-1
FROM: Shannon A. Yauchzee, Director/City Engineer DATE December 21, 2004
Christopher Chung, CDC Director
BY: Arnold M. Alvarez-Glasman, City Attorney
Matt Gorman, Deputy City Attorney
SUBJECT: ELECTION ON THE LEVY OF SPECIAL TAXES BY THE CSS
COMMUNITY FACILITIES DISTRICT, AND CERTIFICATION OF THE
RESULTS THEREOF
RECOMMENDATION:
It is recommended that the City Council: (1) conduct an election on the levy of special taxes by
the Coastal Sage and Scrub (CSS) Community Facilities District (pursuant to the Resolution of
Formation of the District); (2) direct the City Clerk to tabulate the votes cast by landowners
owners within the CSS Community Facilities District; and (3) adopt the following resolution in
the event that two-thirds or move of votes on the election be cast in favor of the levying of
special taxes:
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RESOLUTION NO. - A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF WEST COVINA CERTIFYING THE RESULTS OF
THE ELECTION HELD ON DECEMBER 21, 2004 ON THE LEVY OF
SPECIAL TAXES BY THE COASTAL SAGE AND SCRUB (CSS)
COMMUNITY FACILITIES DISTRICT
DISCUSSION:
This item was held over from the December 7, 2004 City Council meeting.
Background on Election Requirement
This item follows the City Council's proposed formation of the "Coastal Sage and Scrub (CSS)
Community Facilities District," which would establish the District as a means for financing a
habitat program in the BKK area. Before the District can levy special taxes, an election is
required whereby votes representing two-thirds or more of the acreage within the District, must be
cast in favor of the tax.
The Resolution of Formation (considered on the City Council's agenda immediately prior to this
item) provides for setting an election on this matter. Where 100% of landowners are in favor of
the tax, certain election requirements may be waived in order to expedite the approval process.
In such cases, it is common for the election to be conducted immediately following formation of
the district.
The property owners within the CSS Community Facilities District are the West Covina
Community Development Commission ("CDC") and BKK Corporation ("BKK"). In addition,
while not a landowners, West Covina Heights S.C., LLC (a.k.a., "Eclipse Development Group";
hereafter, "Eclipse") is in escrow to purchase CDC property in the District and thus has an
interest in this matter.
BKK and Eclipse have indicated their support of the District's formation, its levy of special
taxes, and a waiver of election requirements, as indicated in support letters attached hereto
(Attachment 1). BKK has also authorized the City Manager/Executive Director to cast its votes
in favor of the levying of special taxes (Attachment No. 1).
In addition, prior to considering this item, the CDC Governing Board will have determined
whether the Executive Director is authorized to cast the CDC's votes in similar fashion (see
Attachment No. 5 to prior City Council/Governing Board joint meeting; copy attached hereto as
Attachment No. 2). If the Executive Director is authorized to cast the CDC's votes in favor of
the levy of special taxes, then 100% of landowners support the special tax and the Executive
Director can cast all votes in favor of the tax.
CSS District - Council Report Re Election (final draft)
Andrew G. Pasmant, City Manager
and City Council
Page 2 — December 21, 2004
Election Process
The attached resolution (Attachment No. 3) is prepared in anticipation of the foregoing. It should
follow the holding of an election wherein the City Manager/Executive Director casts 100% of the
votes in favor of the special tax levy (on behalf of BKK and the CDC). Following the election
and the resolution's adoption, the CSS Community Facilities District will be authorized to levy a
special tax as described in the Resolution of Formation.
The steps to complete this process -are as follows. All steps occur in order at the time of the
Council's consideration of this item at the City Council meeting on December 21, 2004:
1. The City Council votes to begin the election on the levy of special taxes, as
authorized by the Resolution of Formation;
2. The City Clerk is directed to request that votes be cast verbally or in writing;
3. The City Manager/Executive Director casts votes on behalf of BKK in favor of
the tax (by announcement or otherwise);
4. The City Manager/Executive Director casts votes on behalf of the CDC in favor of
the tax (by announcement or otherwise);
5. The City Clerk announces that all votes have been cast;
6. The City Council announces the close of the election and directs the City Clerk to
tabulate the votes;
7. The City Clerk announces the votes cast in favor of the tax, and the votes cast
against the tax;
8. The City Council determines whether two-thirds of the votes are cast in favor of
the tax, and if so, adopt the attached resolution (Attachment 3).
Due to the support letters of BKK and Eclipse, and due to BKK's authorizing the City Manager/
Executive.Director to vote on its behalf in favor of the tax, it is anticipated that the election will
result in 100% of the landowners voting in favor of the tax.
Thus, it is recommended that the City Council proceed as indicated above and adopt the
resolution (Attachment No. 3) at the conclusion of the election.
CONCLUSION:
Levying of special taxes is necessary for the CSS District to operate. Thus, staff recommends
that the City Council follow the procedures above and adopt the attached Resolution certifying
the election on levying special taxes by the District.
CSS District - Council Report Re Election (final draft)
Ll
Andrew G. Pasmant, City Manager
and City Council
-Page 3 — December 21, 2004
FISCAL IMPACT:
No fiscal impacts are associated with holding and certifying the election.
Fiscal impacts associated with the formation of the CSS Community Facilities District and its
levy of special taxes are summarized in the council report on these items, reprinted as follows:
"Costs to the City and/or CDC equal the cost necessary to fund the District's
activities, less the BKK parcels' contribution to funding such costs (in the form of
special taxes; $40,975); these costs amount to' $247,164.36. Upon the close of
escrow with Eclipse, special taxes for Parcels 1 through 6 ($30,713.67) will not be
a City/CDC obligation, thus reducing such costs to $216,450.69. However, if the
District is not formed, or levying of special taxes is not approved, then the City
and/or CDC will be solely responsible for funding 100% of the habitat mitigation
and monitoring costs required by the overseeing governmental agencies. This
amounts to $288,139.36 (see Attachment No. 1). - This additional cost would have
to be funded from the project revenues and/or the General Fund."
Thus, the net fiscal impact is estimated to eventually be a $71,688.67 savings.
Y �
Prepared by: Matt G rman �4&11
Deputy City Attorney
Reviewed/Approved by: 6pl/
CDC
Reviewed/Approved by: Shannon A. Yauchzee
Director/City Engineer
Approved via telephone
City Attorney
Attachment No. 1— BKK and Eclipse letters waiving election requirements, etc. .
Attachment No. 2 — Resolution of CDC waiving election requirements and authorizing votes
Attachment No. 3 — Resolution of City Council on holding election and certifying election results
CSS District - Council Report Re Election (final draft)
ATTACHMENT NO. 1
December 2, 2004
Shannon Yauchzee, Public Works Director/City Engineer
City of West Covina
1444 W. Garvey Ave.
P.O. Box 1440
West Covina, CA 91793
Re: CSS Community Facilities District
Dear Mr. Yauchzee:
This letter is submitted to the City of West Covina on behalf of BKK Corporation, in support of the
proposed Coastal Sage & Scrub (CSS) Community Facilities District.
Pursuant to BKK's Sixth Amendment to Purchase and Sale Agreement with the West Covina
Community Development Commission (the "Agreement"), BKK has agreed to support the formation of
a district according to the terms outlined in the Agreement. BKK staff has had the opportunity to
review the draft report on the proposed CSS Community Facilities District prepared by the City's
consulting engineers, Berryman & Henigar, (the "Report") as well as the City's draft Resolution of
Formation for the proposed District (the "Resolution"), and we have determined that the proposed
CSS District is in conformance with the requirements of the Agreement. In the event of any future
discrepancies or disagreements between either the Report or the Resolution and the Agreement, the
Agreement will continue as the controlling document.
Thus, BKK hereby lodges its full support for the proposed CSS Community Facilities District.
Formation of this District will establish a means to finance habitat restoration and maintenance in and
around BKK's property in the City of West Covina. This habitat is important for preserving the
character of the hillside area for the benefit of our patrons and for residents of the City. The habitat is
also important for compliance with State and federal requirements which could otherwise disrupt our
business due the presence of the protected species.
To facilitate formation of the District and the levy of special taxes, BKK hereby waives any and all
requirements relating to an the election on levying of special taxes by the CSS Community Services
District, including but not limited to requirements for election time limits, analysis, and arguments, as
permitted by Sections 53326(a) and 53327(b) of the California Government Code. BKK hereby
consents to the holding of a special election on December 7, 2004, immediately following the City
Council's anticipated formation of the CSS District.
In addition, in lieu of having a BKK representative appear and vote at the December 7, 2004 election,
BKK hereby authorizes the Community Development Commission to cast all of BKK's votes in favor
of the levy of special taxes, provided that such levy is consistent with the descriptions provided in the
Berryman & Henigar report and as outlined in the draft Resolution of Formation for the CSS
Community Facilities District.
Very truly ours,
Kris L. nan
Treasurer
r-
WEST COVI.NA 5 S. CS LLC
17842 Skyflark Circle Suite 200 Irvine GAM651: Tel. 1.949.2.51.8555: Fos. _1.949.251.9979
December 2, 2004
Shannon Yauchzee, Public Works Director/City Engineer
City of West Covina
1444 W. Garvey Ave.
P.O. Box 1440
West Covina,_CA 91793
Re: CSS Community Facilities District
Dear Mr. Yauchzee:
This letter is submitted to the City of West Covina can behalf of West Covina
Heights S.C., LLC, in support of the proposed Coastal Sage & Scrub (CSS)
Community Facilities District.
As you know, West Covina Heights S.C., LLC, is in escrow with the West Covina
Community Development Commission (the "CDC") for the sale of CDC property
located within the proposed CSS District area. While West Covina Heights S.C.,
LLC, is not yet the record owner of that property, we are nevertheless interested
in the establishment of the CSS District because we will be an owner following
the closing of escrow. In addition, pursuant to the Disposition and Development
Agreement between West Covina Heights S.C., LLC, and the CDC (the "DDA"),
West Covina Heights S.C., LLC, has agreed to support the formation of a district,
according to the terms outlined therein.
West Covina Heights S.C., LLC, staff have reviewed the report on the proposed
CSS. Community Facilities District prepared by the City's consulting engineers,
Berryman & Henigar, dated December 7, 2004, as well as the City's draft
Resolution of Formation for the proposed District, and discussed same with the
CDC and we have determined that the proposed CSS District, as discussed, is in
conformance with the requirements of the DDA.
Thus, West Covina Heights S.C., LLC, hereby supports the proposed CSS
Community Facilities District. Formation of this District will help finance habitat
restoration and maintenance near the property that West Covina Heights S.C.,
LLC, is purchasing from the CDC, and West Covina Heights S.C., LLC, will
participate financially in its maintenance as provided for therein and consistent
with the DDA.
In addition, while West -Covina Heights S.C., LLC, is not yet the record owner of
property within the proposed District's boundaries, West Covina Heights S.C.,
LLC, is interested in expediting the formation of the District, and thus supports in
principle not only its establishment, but also the levy of special taxes at rates
described in the Berryman & Henigar report and in the City's draft Resolution of
Formation. West Covina Heights S.C., LLC; also supports the waiving of all
requirements relating to an election on the levy of special taxes by the District,
and to the holding of the special- election on December 7, 2004, immediately
following the City Council's anticipated formation of the CSS District.
i
Thank you.
Sincerely,
West Covina Heights S.C., LLC
D uglds Gra , ident
4
• ATTACHMENT NO: 2
RESOLUTION NO.
A RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF WEST COVINA VOTING IN
FAVOR OF THE LEVY OF SPECIAL TAXES BY THE CSS
COMMUNITY FACILITIES DISTRICT AND WAIVING ALL
TIME LIMITS AND ELECTION REQUIREMENTS RELATING
THERETO
WHEREAS, on December 21, 2004, the City of West Covina adopted a Resolution of
Formation establishing a community facilities district known as the "Coastal Sage and Scrub .
(CSS) Community Facilities District," pursuant to the Mello -Roos Community Facilities Act of
1982 (Gov't Code § 53311, et seq.);
WHEREAS, the Resolution of Formation set an election on the levy of special taxes by
the CSS Community Facilities District for December 21, 2004; and
WHEREAS, the Community Development Commission is the record owner of certain
real property within the proposed boundaries of the CSS Community Facilities District;
WHEREAS, the Governing Board of the Community Development Commission has
determined that it is in the Commission's interest that the CSS Community Facilities District
levy a special tax in order to finance the facilities and services proposed for said District;
WHEREAS, the Governing Board desires that the CSS Community Facilities District
levy of special taxes in the manner specified in the City Council's Resolution of Formation;
WHEREAS, BKK Corporation (`BKK") is also a landowner owning property within the
proposed boundaries of the CSS Community Facilities District, and has waived all election
requirements relating to the levy of _special taxes by the District, and has authorized the
Community Development Commission to cast all of its votes in favor of such levy;
WHEREAS, the Governing Board, exercising independent judgment, has determined
that the project meets the criteria for a Class 7, Section 15307 Categorical Exemption, a Class 8,
Section 15308 Categorical Exemption, pursuant to the guidelines for implementation of , the
California Environmental Quality Act ("CEQA" [Public Resources Code § 21000, et seq.];
"CEQA Guidelines" [Title 14, Div. 6, Chapt. 3 of the Cal. Code of Regulations]), and that the
proposed project will not have a significant adverse impact on the environment.
NOW, THEREFORE, BE IT RESOLVED by the Governing Board of the Community
Development Commission of the City of West Covina as follows:
SECTION 1. The Community Development Commission hereby affirms the accuracy of
the foregoing recitals.
SECTION 2. In support of Class 7 and 8 Categorical Exemptions for this action (14
CCR §§ 15307, 15308), the Governing Board hereby adopts the following findings:
A. The project will facilitate the establishment, maintenance, restoration and
enhancement of a natural resource, in that the project seeks to establish a community
facilities district which will impose a special tax for the purpose of funding habitat
restoration and maintenance programs pursuant to agreements reached with the U.S.
Fish & Wildlife Service and other federal and State agencies.
B. The formation of a community facilities district for such purpose is authorized by the
Mello -Roos Community Facilities Act of 1982 (Gov't Code § 53311, et seq.), and the
habitat restoration and maintenance programs have been approved by all requisite
federal and State authorities, and by the City Council of the City of West Covina.
SECTION 3. The Community Development Commission hereby waives any and all
requirements for notice and the conduct of the election on levying of special taxes by the CSS
Community Services District, including but not limited to requirements for election time limits,
ZARESOLUTION - 2004\CSS District - CDC Reso re Voting on District (CDC mk).doc
analysis and arguments, as permitted by Sections 53326(a) and 53327(b) of the California
Government Code.
SECTION 4. The Community Development Commission hereby votes in favor of the
levying of special taxes by the CSS Community Facilities District (in the manner specified in the
Resolution of Formation adopted by the West Covina City Council on December 21, 2004). The
Executive Director is directed to cast all such votes in favor of the levying of special taxes at this
or any subsequent proceeding, provided that any such votes shall be consistent with the_
Resolution of Formation adopted by the West Covina City Council on December 21, 2004.
SECTION 5. The Community Development Commission hereby casts all votes of BKK
Corporation in favor of the levying of special taxes by the CSS Community Facilities District (in
the manner specified in the Resolution of Formation adopted by the West Covina City Council
on December 21, 2004). The Executive Director is directed to cast all such votes in favor of the
levying of special taxes at this or any subsequent proceeding, provided that any such vote shall
be consistent with the Resolution of Formation adopted by the West Covina City Council on
December 21, 2004. -
APPROVED, PASSED AND ADOPTED this 21st day of December 2004.
ATTEST: _ CITY OF WEST COVINA COMMUNITY
DEVELOPMENT COMMISSION
Commission Secretary
APPROVED AS TO FORM:
Commission Counsel
Chairman
ZARESOLUTION - 2004\CSS District- CDC Reso re Voting on District (CDC BKK).doc
I
0
OLTTACHMENT NO.3
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL. OF THE CITY
OF WEST COVINA CERTIFYING THE RESULTS OF THE
ELECTION HELD ON DECEMBER 21, 2004 ON THE
LEVY OF SPECIAL TAXES BY THE COASTAL SAGE
AND SCRUB (CSS) COMMUNITY FACILITIES DISTRICT
WHEREAS, on December 21, 2004, the City Council adopted a Resolution of Formation
establishing a community facilities district named, "Community Facilities District No. One,
Coastal Sage and Scrub (CSS) Community Facilities District," in accordance with the
requirements of -the Mello -Roos Community Facilities Act of 1982 (Gov't Code § 53311, et seq.;
the "Mello -Roos Act")
WHEREAS, the Resolution of Formation set December 21, 2004, as the date for an
election on the levy of special taxes on all property within the CSS Community Facilities
District, such that the election would occur immediately following the District's formation;
WHEREAS, all landowners within the District have consented to a full wavier of all
election requirements, including but not limited to election time limits;
WHEREAS, all such landowners likewise authorized the City Manager/Community
Development Commission Executive Director to cast all votes on the levy of special taxes in
favor of such levy;
WHEREAS, pursuant to the landowners' authorizations and waivers, and pursuant to the
terms of the Resolution of Formation and the provisions of the Mello -Roos Act, the City of West
Covina held an election on December 21, 2004 immediately following the formation of the CSS
Community Facilities District, at which the votes of all landowners owning property within said
District were case;
WHEREAS, the City Council, at the conclusion of the election, directed the City Clerk to
tabulate the votes cast by landowners owners within the CSS Community Facilities District, in
favor of, or in opposition to, the levy of special taxes by the District, according to the
requirements of the Mell-Roos Act;
WHEREAS, the landowners of record within said District, as of the close of the election
held on this date, did cast their votes, and the results of the election is illustrated below:
TOTAL VOTES CAST YES TOTAL No TOTAL
WHEREAS, based upon the above -referenced election results, and pursuant to the
requirements of the Mello -Roos Act providing that no special tax may be levied by the CSS
Community Facilities District unless two-thirds or more of all votes cast favor the levying of
such tax, the CSS Community Facilities District may levy a special tax in such manner as
provided in the Resolution of Formation for such District and in the Mello -Roos Act.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of West Covina as
follows:
SECTION 1. The City Council hereby affirms the accuracy of the foregoing recitals.
SECTION 2. The City Council hereby declares the results of the election, including the
tabulation of votes cast therein, to be valid and accurate.
SECTION 3. The City Council hereby determines that any facilities financed by the CSS
Community Facilities District are necessary to meet increased demands placed upon local
agencies as the result of development or rehabilitation occurring in the District.
SECTION 4. The City Clerk is hereby directed to enter this Resolution on the minutes of
4
the City Council, which shall constitute the official declaration of the results of the election on
the levy of speciaLtaxes by the CSS Community Facilities District.
SECTION 5. The City Clerk shall attest to the passage and adoption of this resolution
and it shall be effective immediately upon its approval.
APPROVED AND ADOPTED this 21st day of December 2004.
Mayor
ATTEST:
City Clerk
I, Sue Rush, Acting City Clerk of the City of West Covina, California, do hereby certify
that the foregoing Resolution was approved and adopted by the City Council at a regular meeting
held on the December 21, 2004.
AYES:
NOES:
ABSENT:.
ABSTAIN:
City Clerk
APPROVED AS TO FORM:
City Attorney
CSS District - Reso re Election on Special Tax Levy (draft 2)