Title:
Title
Ordinance Dissolving the Streetcar Community Facilities District No. 2017-01 and Rescinding Ordinance No. 2017-043
End
FileID
File ID: 2019-01139
Location
Location: Districts 3 and 4
Recommendation:
Recommendation
Adopt an Ordinance dissolving the Streetcar Community Facilities District No. 2017-01 (CFD) and rescinding Ordinance No. 2017-0043 levying the special tax.
Contact: Sheri Smith, Special Districts Manager, (916) 808-7204, Department of Finance
Body
Presenter: None
Attachments:
1-Description/Analysis
2-Ordinance
Description/Analysis
Issue Detail: On March 21, 2017, City Council (Council) held a public hearing and passed Resolution No. 2017-0105 establishing the CFD to fund maintenance of the proposed streetcar. The City conducted a special election (mail-ballot) on the proposed special tax to fund the CFD which passed with a 78.05% approval and on July 25, 2017, the Council adopted Ordinance No. 2017-0043 to levy the special tax within the CFD.
Following the formation of the CFD, Horizon Capital Investments, LLC and others sued to invalidate the CFD. The City has entered into a Settlement Agreement, City Agreement No. 2019-0541 (Agreement), and agreed to dissolve the CFD and to not levy the special tax in exchange for dismissal of the lawsuit. The actions in the attached ordinance will satisfy a requirement for dismissal of the lawsuit under the Agreement.
Policy Considerations: The procedures for CFD dissolution are set forth in Government Code section 53338.5.
Economic Impacts: Not applicable
Environmental Considerations:
California Environmental Quality Act (CEQA): This report concerns administrative activities and governmental fiscal activities that do not constitute a “project” as defined by the CEQA Guidelines Sections 15378(b)(2) and 15378(b)(4) and are not subject to the provisions of CEQA (CEQA Guidelines Section 15060(c)(3)).
Sustainability: Not applicable
Commission/Committee Action: None
Rationale for Recommendation: Adoption of the Ordinance will implement the Agreement approved by Council on July 23, 2019.
Financial Considerations: None
Local Business Enterprise (LBE): Not applicable