COUNCIL COMMUNICATION

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1 Meeting Date: February 23, 2016 COUNCIL COMMUNICATION Agenda Item: Agenda Location: Public Hearing Work Plan # Legal Review: 1 st Reading 2 nd Reading Subject: A resolution approving the First Amendment to the Service Plan for Mayfield Metropolitan District and the Amended and Restated Intergovernmental Agreement between the City of Thornton and Mayfield Metropolitan District regarding the Service Plan for the District. Recommended by: Jeff Coder Approved by: Jack Ethredge Ordinance previously Presenter(s): Karen Widomski, Senior Policy Analyst introduced by: SYNOPSIS: Mayfield Metropolitan District ( the District ) is requesting a First Amendment to the Service Plan for the District to remove language that requires the District to dissolve if the proposed development does not occur, or no debt has been issued, within ten years of approval of the Service Plan. The District was organized in May 2006 and would be required to dissolve this year if this requirement is not removed. The District has indicated that there is potential for development in the near future which would result in the need for the District to issue debt. Therefore, the District does not want to dissolve. An Amended and Restated Intergovernmental Agreement ( IGA ) between the City and the District, which is the document that establishes the specific powers, authority, limitations, and requirements granted to the District, has also been submitted for the purpose of replacing the original dissolution requirement with the dissolution language from the City s current model service plan and IGA. RECOMMENDATION: Staff recommends Alternative No. 1, to approve the First Amendment to the Service Plan and the IGA for Mayfield Metropolitan District, because there is still development interest on the property and the District has indicated to the City that it still anticipates the need to issue debt to pay for future public improvements. Additionally, the City s model service plan and intergovernmental agreement which were created in 2007 do not have this ten year dissolution requirement, so the District s amendment conforms to the form and content of the model service plan and model IGA, the criteria of Chapter 66 of the City Code, and Colorado State law. BUDGET/STAFF IMPLICATIONS: The District is exempt from sales and use taxes, but has maintained the provision of the original Service Plan, and stated in the IGA, that it will not exercise this provision when purchasing materials and services within the City. ALTERNATIVES: 1. Approve the resolution approving the First Amendment to the Service Plan and the IGA. 2. Do not approve the resolution approving the First Amendment to Service Plan and the IGA, in which case the District would be required to dissolve and a new metropolitan district would likely need to be organized to pay for the future public improvements on this site.

2 COUNCIL COMMUNICATION PAGE 2 BACKGROUND (ANALYSIS/NEXT STEPS/HISTORY): (includes previous City Council action) What is a Metropolitan District? Title 32 of the Colorado Revised Statutes provides for the creation of a local governmental entity called a special district. A metropolitan district is a type of Title 32 special district that has the authority to issue debt for the construction and maintenance of public improvements, and to impose a mill levy for repayment of that debt. Analysis The Service Area of the District includes approximately 120 acres of residential land located entirely within the City of Thornton. The District is generally located on the southwest corner of East 120th Avenue and Quebec Street. The purpose of the First Amendment is to remove the provisions of the Service Plan and IGA which require dissolution of the District if, within ten years of the date that the District Court decrees the organization of the district, the proposed development does not occur or no debt has been issued by the District. The District was organized in May 2006 and would be required to dissolve this year if this requirement is not removed. The District has indicated that there is potential for development in the near future which would result in the need for the District to issue debt. Therefore, the District does not want to dissolve. The City s model service plan and IGA, created in 2007, do not require districts to dissolve after ten years if they have not developed or issued debt, and therefore the District is proposing to replace the original language from the District s 2006 Service Plan and IGA with our current model dissolution language. Specifically, the First Amendment to the Service Plan replaces Section V.II of the Service Plan in its entirety with the following language from the City s current model service plan: DISSOLUTION. Upon an independent determination of the City Council that the purposes for which the District was created have been accomplished, the District agrees to file petitions in the appropriate District Court for dissolution, pursuant to the applicable State statutes. In no event shall dissolution occur until the District has provided for the payment or discharge of all of its outstanding indebtedness and other financial obligations as required pursuant to State statutes. Additionally, paragraph 11 of the IGA has been amended to replace the original dissolution provisions with this same model language. History: The public hearing notice for the request to create this District was published in the Northglenn- Thornton Sentinel on January 28, 2016, and notices were sent by first class mail on January 25, 2016, to property owners within the proposed service area of the District and to surrounding taxing entities. The original IGA between the City and the District was executed on February 13, The District s original Service Plan was approved by City Council on February 28, 2006 by Resolution C.D. No

3 COUNCIL COMMUNICATION PAGE 3 The property within the District s boundaries is platted as Mayfield Subdivision Amendment No. 1, recorded on March 5, City Council approved Single-Family Detached (SFD) and Parks and Open Space (POS) zoning for this property on April 12, 2005 by Ordinance No The property within the District s boundaries was annexed into the City on April 12, 2005 by Ordinance No City Council approved the Conceptual Site Plan for this property on March 22, 2005 by Resolution C.D. No

4 R E S O L U T I O N A RESOLUTION APPROVING THE FIRST AMENDMENT TO THE SERVICE PLAN FOR MAYFIELD METROPOLITAN DISTRICT AND THE AMENDED AND RESTATED INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF THORNTON AND MAYFIELD METROPOLITAN DISTRICT REGARDING THE SERVICE PLAN FOR THE DISTRICT. WHEREAS, pursuant to the provisions of Chapter 66 of the Thornton City Code and the Special District Act, Part 2 of Article 1, Title 32, C.R.S., the First Amendment to the Service Plan and an Amended and Restated Intergovernmental Agreement Regarding the Service Plan have been submitted to the City of Thornton ( City ) for Mayfield Metropolitan District (the District ) whose District boundaries are wholly within the corporate limits of the City; and WHEREAS, the original Mayfield Metropolitan District Service Plan was approved by the City Council of the City of Thornton ( City Council ) on February 28, 2006 after which the District was organized in May 2006; and WHEREAS, the First Amendment to the Service Plan, attached as Attachment A, modifies the Service Plan to remove language that requires the District to dissolve if the proposed development does not occur, or no debt has been issued, within ten years of approval of the Service Plan; and WHEREAS, the City Council has conducted a public hearing on February 23, 2016 regarding the First Amendment to the Service Plan; and WHEREAS, the City and the District previously entered into an intergovernmental agreement on February 13, 2007; and WHEREAS, the Amended and Restated Intergovernmental Agreement between the City and the District, attached as Attachment B, has been prepared to replace the previous agreement in accordance with the terms, provisions, and limitations contained in the First Amendment to the Service Plan and to identify the powers granted to the District. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THORNTON, COLORADO, AS FOLLOWS: 1. The City Council determines that the requirements of Chapter 66 and the requirements of Sections (2), (2), and , C.R.S. have been satisfied by the First Amendment to the Service Plan and the Amended and Restated Intergovernmental Agreement Regarding the Service Plan for Mayfield Metropolitan District.

5 2. The City Council determines that the City s notification requirements have been complied with regarding the public hearing on the First Amendment to the Service Plan. 3. In accordance with the requirements of Chapter 66 of the City Code, the City Council hereby finds that: a. There is sufficient existing and projected need for organized service in the area to be served by the District. b. The existing service in the area to be serviced by the District is inadequate for present and projected needs. c. The District is capable of providing economical and sufficient service to the area within the District s boundaries. d. The area included within the District has, or will have, the financial ability to discharge the proposed indebtedness on a reasonable basis. 4. In accordance with the requirements of Chapter 66 of the City Code, the City Council also finds that: a. The service standards of the District are compatible with the service standards of the City. b. This First Amendment to the Service Plan will be in the best interests of the area to be served. 5. The City Council s findings are based solely upon the evidence in the First Amendment to the Service Plan as presented at the public hearing and the City has not conducted any independent investigation of the evidence. The City makes no guarantee as to the financial viability of the District or the achievability of the results. 6. The First Amendment to the Service Plan for Mayfield Metropolitan District is hereby approved. The terms, provisions, and limitations of the First Amendment to the Service Plan have been incorporated into the Amended and Restated Intergovernmental Agreement. 7. The Amended and Restated Intergovernmental Agreement Regarding the Service Plan attached hereto and incorporated herein by this reference is hereby approved, but shall not be effective until executed by the City and the District. 8. The City Council s approval of the First Amendment to the Service Plan and the Amended and Restated Intergovernmental Agreement Regarding the Service Plan is not a waiver or a limitation upon any power, which the City Council is legally permitted to exercise with respect to the property subject to the District. 2

6 9. The City Manager is authorized to sign and the City Clerk to attest the attached Amended and Restated Intergovernmental Agreement Regarding the Service Plan for the District. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Thornton, Colorado, on, CITY OF THORNTON, COLORADO ATTEST: Heidi K. Williams, Mayor Nancy A. Vincent, City Clerk 3

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