Title:
Title
Public Improvement Maintenance Agreement with the Cove at Sacramento Community Association for the Cove Project
End
FileID
File ID: 2019-01664
Location
Location: District 4
Recommendation:
Recommendation
Pass a Motion authorizing the City Manager or the City Manager’s designee to sign and deliver, on the City’s behalf, a Public Improvement Maintenance Agreement with the Cove at Sacramento Community Association (HOA).
Contact: Eric Frederick, Program Specialist, (916) 808-5129; Sheri Smith, Special Districts Manager, (916) 808-7204, Department of Finance
Body
Presenter: None.
Attachments:
1-Description/Analysis
2-Background
3-Public Improvement Maintenance Agreement
Description/Analysis
Issue Detail: Beazer Homes Holdings Corp. (Developer) is in the process of developing property located on approximately 80.3 acres of land north of West El Camino Avenue, east of Orchard Lane, south of Interstate 80, and west of the Natomas Main Drainage canal in the Willowcreek area of the City. Development of the property is anticipated to include a total of 590 housing units, drainage basins, landscaped lots, a bike trail, a community park, and other open space lots known as the Cove project (Project). A map of the Project, along with information regarding Project entitlements, is provided in Attachment 2 of this report.
In accordance with the requirements of the Project’s tentative map, the Developer annexed the Project to a community facilities district under the Mello-Roos Community Facilities Act of 1982 (Government Code sections 53311-53368.3), known as the Sacramento Maintenance Community Facilities District No. 2014-04 (District). The District authorizes collection of a special tax from property owners to fund the maintenance of certain public facilities located within the Project, including a bike trail, drainage basins, and landscaped lots.
The attached Public Improvement Maintenance Agreement (Agreement) allows the HOA to assume responsibility for maintenance of the drainage basins and landscaped lots at their own expense in exchange for the City’s agreement not to levy the special tax except for certain inspection and administration costs. If, however, the HOA fails to meet their obligations under this Agreement and the City assumes maintenance obligations for one or more of these, improvements, then the City is authorized to levy the special tax to fund maintenance of those improvements. The Agreement also stipulates that the City will levy the special tax in order to fully fund the maintenance costs of the bike trail located in the Project.
Policy Considerations: The recommended action does not limit the City’s ability to levy a special tax to pay for certain bike trail maintenance costs, while also providing for the special taxes to serve as a back-up funding source for maintenance of drainage basins and certain landscaped lots in the Project area should the HOA fail to provide maintenance of those lots up to City standards. In addition to funding ongoing bike trail maintenance costs, any ongoing administration or inspection costs for the other public improvements will be funded through special tax revenue.
Economic Impacts: None.
Environmental Considerations:
California Environmental Quality Act (CEQA): Under CEQA Guidelines, administrative actions of the City that will not result in direct or indirect changes to the environment do not constitute a project and is therefore exempt from review (14 Cal. Code Regs. §15378(b)(2) & (5)).
Sustainability: Not applicable.
Commission/Committee Action: None.
Rationale for Recommendation: Authorizing the City Manager or the City Manager’s designee to execute the Agreement will allow the HOA to maintain the identified lots pursuant to City standards in exchange for the City not levying a special tax on properties within the Project for as long as those standards are met.
Financial Considerations: Under the Agreement, the HOA is responsible to maintain the drainage basins and certain landscaped lots, and the City can levy special taxes to fund the costs related to maintenance of a bike trail and the City’s ongoing administration costs of the District and inspection of the drainage basins and landscaped lots. There are no impacts on other funds of the City.
Local Business Enterprise (LBE): Not applicable.