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HomeMy WebLinkAboutReso 1999-19587.__ RESOLUTION NO. 19587 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 99-1, AUTHORIZING THE ANNEXATION OF TERRITORY IN THE FUTURE TO SUCH COMMUNITY FACILITIES DISTRICT WHEREAS, the City Council has declared its intention, conducted proceedings and held a public hearing relating to the authorization to annex territory in the future to a community facilities district pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982," being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, and specifically Article 3.5 thereof. The existing Community Facilities District is designated as COMMUNITY FACILITIES DISTRICT NO. 99-1 (the "District"); and, WHEREAS, it has now been determined to be within the best public interest and convenience to establish a procedure to allow and provide for future annexations to the District and further to specify the amount of special taxes that would be levied in any territory subject to future annexation, as well as setting forth the terms and conditions for certification of any annexation in the future; and WHEREAS, the territory proposed to be annexed in the future shall be known and designated as COMMUNITY FACILITIES DISTRICT NO. 99~1 (FUTURE ANNEXATION AREA) (the "Future Annexation Area"), and a map showing the territory in the Future Annexation Area has been submitted and previously approved and a copy of said map is and shall be kept on file with the transcript of these proceedings; and WHEREAS, it has now been further determined that written protests have not been received representing a majority protest against the future annexation proceedings. NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: RECITALS SECTION 1. The above recitals are all true and correct, ANNEXATION AUTHORITY SECTION 2. This legislative body does hereby authorize the annexation of the Future Annexation Area in the future pursuant to the provisions and authorization of Section 53339.7 of the Government Code of the State of California. PUBLIC CONVENIENCE AND NECESSITY SECTIOI'J 3. This legislative body hereby determines that the public convenience and necessity requires a procedure to allow and authorize the Future Annexation Area to be annexed in the future to the District in order to pay the costs and expenses for the required and authorized public facilities. Resolution 19587 Page 2 BOUNDARIES SECTION 4. A description of the boundaries and territory proposed to be annexed in the future is as follows: All that property and territory within the Future Annexation Area proposed to be annexed in the future to the District, as said property is shown on a map as previously approved by this legislative body, said map identified by the name of the District and further designated as the Future Annexation Area, a copy of which is on file in the Office of the City Clerk and shall remain open for public inspection. NAME OF DISTRICT SECTION 5. The name of the District is COMMUNITY FACILITIES DISTRICT NO. 99-1, and the designation for the Future Annexation Area shall be COMMUNITY FACILITIES DISTRICT NO 99-1 (FUTURE ANNEXATION AREA). FACI LITI ES SECTION 6. A general description of the public facilities which this legislative body is authorized by law to construct, own or operation, which are the facilities to be financed by the District are generally described in Exhibit A attached hereto and incorporated herein by this "'- reference. No additional facilities will be necessary or provided in the Future Annexation Area and the facilities as described for the District will serve the properties within the Future Annexation Area. SPECIAL TAXES SECTION 7. It is the intention of this legislative body that, except where funds are otherwise available, a special tax sufficient to pay for said facilities to be provided in the District and the Future Annexation Area, secured by recordation of a continuing lien against all non-exempt real property in the Future Annexation Area, will be levied annually within the boundaries of the Future Annexation Area from and after the annexation of such property to the District. The special taxes shall be those as originally authorized through the formation of the District and adopted by Ordinance of this legislative body, and no changes or modifications are proposed in the special taxes from those as originally set forth and made applicable to the District, For particulars as to the rate and method of apportionment of the proposed special tax (the "Special Tax Formula"), reference is made to the attached and incorporated Exhibit "B," which sets forth in sufficient detail the method of apportionment to allow each landowner or resident within the Future Annexation Area to clearly estimate the maximum annual amount that said person will have to pay on said special tax. This legislative body further authorizes that special taxes may be prepaid and satisfied by payment of the prepayment amount calculated pursuant to the Special Tax Formula. Resolution 19587 Page 3 The special taxes, to the extent possible, shall be collected in the same manner as ad valorem property taxes and shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency as applicable for ad valorera taxes; provided, however, the District may utilize a direct billing procedure for any special taxes that cannot be collected on the County tax roll or may, by resolution, elect to collect the special taxes at a different time or in a different manner if necessary to meet its financial obligations. ANNEXATION EFFECTIVE DATE SECTION 8. Annexation of property in the future shall be effective only with the unanimous approval of the owner or owners of each parcel or parcels at the time that any parcel is proposed for annexation. Upon receipt of the written consent, no further public hearings or additional election proceedings will be required. VALIDITY OF PROCEEDINGS SECTION 9. It is hereby further determined by this legislative body that all annexation proceedings hereto were valid and in conformity with the requirements of law, and specifically the provisions of the "Mello-Roos Community Facilities Act of 1982". NOTICE SECTION 10. Immediately upon the receipt of a property owner consent and the certification of the annexation proceedings and approval of such annexation by the City Council, a notice of the annexation shall be recorded in the Office of the County Recorder as required by Section 53339.8 of the Government Code of the State of California. Prepared by Approved as to form by Resolution 19587 Page 4 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 31 .t day of August, 1999, by the following vote: AYES: Councilmembers: Davis, Moot, Salas and Horton NAYS: Councilmembers: None ABSENT: Councilmembers: Padilia ABSTAIN: Councilmembers: None S h~Mayor'~ ATTEST: Susan Bigelow, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 19587 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 31 .t day of August, 1999. Executed this 31't day of August, 1999. Susan Bigelow, City Cler~ ) ,--- ~ E~'n!RIT A :) CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 99-1 (Otay Ranch SPA One- Portions of Village One, Village Five and Village One West) RATE AND METHOD OF APPORTIONMENT CITY OF CItU'LA VISTA COMMUNITY FACII;1TIES DISTRICT NO. 99-1 (OTAY RANCH SPA ONE - PORTIONS OF VILI.AGE ONE, VII.I,AGE FIVE AND VII .I .&GE ONE WEST) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX A Special Tax as beminafter defined shidl be levied on all Taxable Property within the City of Chula Vista Community Facilities District No. 99-1 ("CFD No. 99-1 ") and collected each Fiscal Year commencing in Fiscal Year 2000-2001, in an mount determined by the City Council through the application ofthe'appropriate Special Tax for "Developed Property", "Taxable Property Owner Association Property", and "Undeveloped Property" as described below. All of the real property in CFD No. 99-1, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provide{[ A. DEFINITIONS The terms here/halter set forth have the following meanings: "Acre or Acreage" means the land area of an Assesso~'s Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessors Parcel Map, the land area shown on the applicable final map, parcel map, condomimum plan, record of survey, or other recorded document creating or describing the parcel. ff the preceding maps are not available, the Acreage shall be determined by the City Endricer. "Act" medns the McHo-Roos Comm~mity Facilities Act of 1982, as mended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the following actual or reasonable estimated costs directly related to the administration of CFD No. 99-1, including but not limited to, the following: the costs of computing the Special Taxes and preparing the annual Special Tax collect/on schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the County, the City, or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Trastce (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 99-1 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 99-1 or any designee thereof of complying with City, CFD No. 99-1 or obligated persons disclosure requirements associated with applicable federal and state securities laws and of the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 99-1 or any designec thereof related to an appeal of the Special Tax; the costs of any credit e~ancement obtained by the City or CFD No. 99-1 (but excluding the costs of any credit enhancement required to be provided by the Master Developer or any other owner of property within CFD 99-1), and the costs associated with the release of funds from an escrow account, if any. Administrative Expenses shall also include mounts estimated or advanced by the City or CFD No. 99-1 for any other adminislrative purposes of CFD No. I, inclvding attomey's fees and other costs relatedto commencing and pursuing to completion any foreclosure of d~linquent Special Taxes. "Annexation Parcels" means those specific Assessox~s Parcels that am subject to future annexation into CFD No. 99-1 as depicted in Exhibit B attached heroin. Any Annexation Parcels that annex to CFD No. 99-1 will be subject to the Maximum Annual Special Tax and the Backup Special Tax of the zone of CFD 99-1 within which such Annexation Parcel is located and the appropriate land use categoPj of CFD No. 99-1 to which such Annexation Parcel. "Assessor's Parcel" means a lot or parcel shown in an Assessor~s Parcel Map with an assigned Assessor's Parcel nmber. "Assessor's Pareel Map" means an official map of the County Assessor of the County designating parcels by Assessors Parcel number. "Available Funds" means the balance in the reserve fund established pursuant to the terms of the Indenture in excess of the reserve requirement as defined in such Indenture, delinquent special tax payments, foreclosure proceeds, the portion of proceais of Backup Special Tax payments and Special Tax propayments collect~ to pay interest on Bonds, and other sources of funds available as a credit to the Special Tax Requirement as specified in such Indanure. "Backup Special Tax" means the Special Tax that is required to be paid as a condition precedent to the issuance of building permits or recorclation of GriM maps, as determined in accordance with Section E below. "Bonds" means any bonds or other debt (as defined in the Act), whether in one or more series, issued by CFD No. 99-1 under the Act and secured by the levy of the Special Taxes. "CFD Administrator" means an official of the City acting for and on behalf of CFD 99-1, or designee thereof, responsible for determining the Special Tax Requirement and providing forthe levy and collection of the Special Taxes. "CFD No. 99-1" means City of Chula Vista Community Facilities District No. 99-1 (0 tay Ranch SPA One - Portions of Village One, Village Five, and Village One West), as depicted in Exhibit A. "City" means City of Chain Vista. City ofChula Fista August 17. 1999 Community Facilities District No. 99-1 Page 2 "Commercial Property's means all Assessots Parcels of Developed Property for which a building permit(s) was issued for a non:residential use, excluding Community Purpose Facility Property.. "Community Purpose Facility Property" means all Assossoes Parcels of Developed Property, which are classified as community purpose facilities and meet the requirements of City of Chula Vista Ordinance No. 2452. "Council" means the City Council of the City, acting as the legislative body of CFD No. 99-1. "County" means the County of San Diego. "Developed Property" means, for each Fiscal Year, all Taxable Property, exclusive of Taxable Property Owner Association Property, for which a building permit for new construction was issued prior to March 1 of the prior Fiscal Year. "Development Projection" means an annual calculation for each Planning Area of CFD No. 99-1 of: (i) the number and total Residential Floor Area of existing dwelling umts of Residential Property, the number of existing Acres of Commercial Property, and the number of existing Acres of Community Purpose Facility Property, and (ii) a projection of all future development, including the acreage, projected number of residential dwelling units, projected Residential Floor Area, projected Commercial Property Acres, projected CommnRity Purpose Facility Property Acres, and an absorption schedule for all future development within CFD No. 99-1. The Development Projection shall be dated as of March 1 and prepared each Fiscal Year by the Master Developer. Upon submittal, the CFD AdminishaWr shall review, modify if necessary, and approve the Development Projection. If the Development Projection is not received by the CFD administrator on or before April 1 of each year, the CFD Administrator shall then prepare or came to be prepared a Development Projection. "Final Residential Subdivision" means a subdivision of property created by recordation of a final map or parcel map, approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq. ), recorclation of a lot line adjttsUnent approved by the City which creates a parcel for which a building permit may be issued or reeordation ofa condominium plan pursuant to California Civil Code 1352 that creates individual lots for which residential building permits may be issued Without further subdivision of such property. "Fiscal Year" means the period starting July 1 and ending on the folloWing Jane 30. "Indenture" means the indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, eraended and/or supplemented fi'om time to time, and any instrament replacing or supplementing the same. Ci~ ofCImla l~sta Communi.ty Facilities District ,Vo, 99-1 August 17. 1999 Page 3 "Land Use Class" means any of the classes listed in Tables 1, 2, and 3 of Section C. "~ "Master Developer" means the owner or owners of the pt'edominant amount of Undeveloped Property in CFD No. 99-1. "M. tzimum Annual Special Tax" means the maxhnum annllsll Spe~i~ Ta,v,., deteTllrlined i(1 accordance with the provisions of Section C below, that may be levied in any Fiscal Year on any Assessors Parcel of Taxable Property. 'Occupied Residential Property" means all Assessors Parcels of Residential Property, which have closed escrow m an end user. "Outstanding Bonds" means all Bonds, which remain ou~hmtllnS: "Planning Areas" means those areas shown on Exhibit C. Minor adjustments in the boundaries of the Planning Areas may be made by the CFD Arlmin~h~or to conform to the tentative and final maps, lot line adjustmere or other property line adju.~hucnt approved by the City for these areas. The Planning Areas in Exhibit C existing at the time of formation of CFD No. 99-1 may be expanded to include Annexation Parcels fi'om time to time or Rdcl~tiolml Planning Areas may be established to include Annexation Parcels f~om time to time. "Property Owner Association Property" means any property within the boundaries of CFD No. 99-1 owned by or dedicated to a property owner association, including any master or sub-essociation. "Proportionately" means for Developed Property that the ratio of the actual Sl~cial Tax levy to the Maximum Anmml Special Tax is equal for all Assessors Parcels of Developed Property within CFD No. 99-1. For Undeveloped Property, '?roportionat~ly' means that the ratio of the actual Special Tax levy per Acre to the Maximum Annual Special Tax per Acre is equal for all Assessor's Parcels of Undeveloped Property within CFD No. 99-1. "Public Property." means any property within the boundaries of CFD No. 99-1 that is used for rights-of-way or any other purpose and is owned by or dedicated to the f~Icral government, the State of California, the County, the City or any other public agency. "Residential Property" means all Assessors Parcels of Developed Property for which a building permit has been issued for purposes of consWacting one or more residential dwellii'lg "Residential Floor Area" mc~_ns all of the squaw footage of living area within the perimeter of a residential su'ucture, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of Residential Floor Area shall be made City of CImla Vista August 17, 1999 Comm~ni.n, Fadlilies Disrdct Aro. 99- I page 4 by reference to appropriate records kept by the City's Building Depaa'unent. Residential "'- Floor Area will be based on the building permit(s) issued for each dwelling unit prior to it being classified as Occupied Residential Properly, and shall not Change as a restfit of nttrtifions or modifications made after such classification as Occupied Residential Property. "Special Tax" mean~ the: (i) armual special tax to be levied in each Fiscal Year on each Assessoes Parcel of Taxable Property to fund the Special Tax Requirement pursn~-t m Section D, and (ii) the Backup Special Tax required to be paid as a result of changes in development "Special Tax Requirement" me-an~ that mount required in any Fiscal Year for CFD No. 99-1 to: (i) pay annllal debt sendee on all Outstanding Bonds as defined in Section A; (ii) pay periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on the Bonds; (iii) pay Administrative Expenses; (iv) pay any mounts required to establish or replemsh any reserve funds for all Outstanding Bonds in accordance with the Indenture; (v) and pay directly for acquisition and/or construction of facilities, which are authorized to be financed by CFD No. 99-1; (vi) less a credit for Available Fends. "State" means the State of California. "Taxable Property" mean~ all of the Assessor's Parcels within the botlndaxies of CFI) No. 99-I which are not exempt from the Special Tax pursuant to law or the provisions of Section F below. "Taxable Property Owner Association Property" means all Assessors Pamcis of Property Owner Association Property that are not exempt pursuant to the provisions of Section F below. "Trustee" means the trustee, fiscal agent, or paying agent under the Indenture. "Undeveloped Property" means, for each Fiscal year, all Taxable Property not classified as Developed Property or Taxable Property Owner Association Property. "Zone A" applies only to Developed Property, and means a specific geographic location known as the Village One area as depicted in Exhibit A attached herein. "Zone B" applies only to Developed Properly, and means a specific geographic location known as the Village Five area as depicted in Exhibit A attached herein. "Zone C" applies only to Developed Property, and means a specific geographic location known as the Village One West area as depicted in Exhibit A attached herei C i .tv of Chula F~sta August 17, 1999 C ommtmt~ Facilities Dismet N o. 99~ 1 Page 5 .- I-'- ~ B. ASSIGNMENT TO LAND USE CATEGORIES °'~ Each Fiscal Year, all Taxable Property within CFD No. 99-1 shall be classified as Developed Property, Taxable Property Owner Association Property, or Undeveloped Property, and shall be subject to the levy of annual SFeeial Taxes determined ptll~mnt tO Sections C and D below. Developed Property shall further be assigned to Zone A, Zone B, or Zone C. The Maximum Annual Special Tax for an Assessors Parcel of Residential Property shall be based on the Residential Floor Area and the number of the dwelling units located on such Assessufs Parcel. The Maximum Annual Special Tax for an Assessor's Parcel of Commercial Property an ~d Commuaity Purpose Facility Property shall be based on the Acreage of such Assessor~s Parcel. C. MAXIMUM ANNUAL SPECIAL TAX RATE 1. Developed Property The Maximum Annual Special Tax for each Land Use Class of Developed Property within Zone & Zone B, or Zone C shall be the applicable amount shown on Tables 1, 2, and 3 below. The Maximum Annual Special Tax for each Assessor's Parcel of Residential Property shall equal the specified amount per dwelling unit limes the number .-- of dwelling units on such Assessors Parcel plus the specified amount per square foot times the square footage of Residential Floor Area on such Assessor's Parcel. TABLE 1 Maximum Annual Special Tax for Developed Property in Zone A (Village One) Community Facilities District No. 99-1 Land Use Maximum Class Description I Residential Properly $0 per dwelling unit + $.28 per square foot of Residential Floor Area 2 Commercial Property $1,600 per ACre 3 Community Purpose Facility $400 per Acre Property Ci(y ofChula Vista August 17, 1999 Communi.ty Facilities Dist~ct I~'o. 99-1 Page 6 ,TABLE 2 Maximum Annual Special Tax for Developed Property in Zone B (Village Five) Community Facilities District No. 99-1 Land Use Max~num Anmla] Special Class Description Tax 1 Residential Property $400 per dwelling unit + $.29 per square foot of Residemial Hoor Area 2 Commercial Property, $3,717 per A~re 3 Comm:ll~i~3f, Purpose Facility Property $929 per Acre TABLE 3 Maximum Annual Special Tax for Developed Property in Zone C (Village One West) Community Facilities District No. 99-1 Land Use /VIaxLram Annual Special Class Description Tax 1 Residential Property $400 per dwelling unit + $.44 per square foot of Residential Floor Area 2 Commercial Property $4,266 per Acre 3 Community Purpose Facility Propen'y $1,066 per Acre 2. Undeveloped Property and Taxable Property Owner Association Property The Maximum Annual Special Tax for each Assessors Parcel classified as Undeveloped Property and Taxable Property. Owner Association Property shall be $8;864 per Acre. D. METHOD OF APPORTIONMENT OF TH]~ SPECIAL TAX Cornxnencing with Fiscal Year 1999-2000 and for each following Fiscal Year, the Council shall determine or cause to be determined the Special Tax-Requiremere and shall determine or cause to be determined the applicable manual Special'Tax so that the mount of Special Taxes equals the Special Tax Requirement for such Fiscal Year. The annual Special Tax shall be calculated and levied each Fiscal Year as follows: First: The Special Tax shall be levied Proportionately on each Assessors Parcel of Developed Property within Zone A, Zone B, or Zone C at up to 100% of the applicable Maximum Annual Special Tax ~o satisfy the Special Tax Requirement. City ofCImla I~sla Community Facilities District Mo. 99-1 ,eatgust 17. 1999 Page7 Second: If additional moneys are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each AssessoPs Parcel of Undeveloped Property at up to 100% of the Maximum Annual Special Tax for Undeveloped Property. Third: ff addilional moneys arc needed to ~u~cy the Special Tax Rextui~ment after the fixst two steps have been completed, then the Special Tax shall be levied Proportionately on each Assessors Parcel of Taxable Proper0r Owner Association Property and Public Property, ff applicable, as provided for in Section F at up to the Maximum Annul Special Tax for Taxable Property Owner Association Property and Public Property, if applicable. Notwithstanding the above, under no circmngtances will the Spe~al Tax levied a~a~in~t any AssessoPs Parcel of Occupied Residential Property be increased by more than ten percent per year as a consequence of delinquency or default in the payment of Special Taxes by the owner of any other AssessoPs Parcel of CFD No. 99-1. E. BACKUP SPECIAL TAX The following definitions apply to this Section E: "Actual Avenge Special Tax Per Unit" means, for each Planning Area, the Actual Special Tax Revenue divided by the sum of the number of units included in any current building permit application(s) plus the number of units within such Planning Area for which building permits have previously been issue& Any Residential Floor Area created by building permits issued after an Assesses Parcel has been classified as Occupied Residential Property shall not be included in determining the Actual Avenge Special Tax Per Unit. "Actual Special Tax Revenue" means, for each planning Area, the sum of the total Residential Floor Area shown on any current building permit application(s) plus the total Residential Floor Area from any previously issued building permits within the Planning Area multiplied by the applicable Maximum Annual Special Tax. Any Residential Floor Area created by building permits issued after an AssessoPs Parcel has been classified as Occupied Residential Property shall not be included in determining the Actual Special Tax Revenue. "Backup Special Tax Fund" means, for each Planning Area, the fund or account identified in the Indenture to hold Backup Special Tax paymenU received from property owners within such Planning Area, "Expected Special Tax Revenue" means, with respect to each Planning Area, the amount shown in the column so labeled in Tables 4, 5, and 6. Cit), of Chula Ifista August 17~ 1999 Community Facilities District No. 99-1 page 8 "Required Average Special Tax Per Unit]Acre" means, for each Planning Area, the Expected Special Tax Revenue divided by the total expected number of dwelling units or non-residential Acres (as applicable) expected to be developed within the Planning Area, as detexmined by the CFD Admini~i~ator based on temative maps, Final Residential Subdivision maps, the Development Projection, and all other relevant information available to the CFD ActminisWator. In cases where residential and non=residential property are both nicluded within a P]Rnning Area, the C~D Admini~'ator may adjust the Required Average Special Tax Per Unit]Acre as necessary. "Share of Annual Debt Service" means, for ~ach Planning Area, the maximum annual debt sewice on the Bonds multiplied by that Planning Area's percentage of the total Special Tax rcvcnuc,.as shown in Table 4, 5, and 6 below. A Planning Ar~a's Share of Annual Debt Service shall be adjus~d to reflect any prepaymcnts within that Planning 1. Expected Development and Special Tax Revenues Tables 4, 5, and 6 below identify the amount of development and Special Tax revenue that is currently expected from each Planning Ar~a in Zone A, Zone B, or Zone C. Tables 4, 5, and 6 may be revised by the CFD Administrator if the Planning A~a boundaries arc modified as a result of the annexation of Annexation Parcels to CFD 99-1 or otherwise. The owner of the Annexation Parcels, upon such annexation, shall provide the CFD Administnnor the total number of residential units or the total number of non- residential Acres, and the total Residential Floor Ar~ cx'p~ to be developed within the land area of such Annexation Parcels. The CFD AdrninisWator shall utilize this information to modify Tables 5 and 6 to include the additional Expected Special Tax Revenue, and to rccalculatc the percent of to~al revenue for each Planning Area. TABLE 4 Expected Development and Special Tax Revenue by Planning Area within Zone A Community Facilitim District No. 99-1 NUMBER EXPECTED OF TOTAL SPECIAL PERCENT PLANNING EXPECTED UNITS/ RESIDEN'IIAL TAX OF TOTAL AREA PRODUCT TYPE ACRES FLOOR AREA REVENUE REVENUE R-6 Residgntial Propexty 77 units 179,872 50,364 5.07% R-7 ResidentialProperty 131 units 411,078 115,102 11.58% R-9 Residential Property 74 units 182,928 51~220 5.15% R-10 Resideatial Pt;ope~. 123 units 324,351 90,818 9.14% R-12 Residential Property 83 units 168,988 47,317 4.76% R-13 Residential Property 88 units 146,256 40,952 4.12% R-14 Residential Property 139 units 215,589 60,365 6.07% R-15 Residential Property 464 units .464,000 129,919 13.070/o R-16 Residential Property 115 units 178,365 49,942 5.02% R-17 Residential Property 98 traits 199,528 55,868 5.62% R-18 Residential Property 74 units 122,988 34,437 3.46% R-19 Residential Property 204 units 204,000 57,120 5.75% R-20 Residential Property 160 units 160,000 44,800 4.51% R-21 Residential Property 168 units 168,000 47,040 4.73% R-47 Residential Property 174 units 174,000 48,720 4.90% R-48 ResidentialProperty. 96 units 195,456 54,728 5.51% C-I Commercial 8.1 acres N/A 12,960 1.30% Property CPF-1 Commullity Purpose 1.5 acres N/A 600 0.06% Facility Property CPF-2 Commullity Purpose 4.5 acres N/A 1,800 0.18% Facility Property TOTAL 2,268 units $994,072 100.00% Ci~ of Chula ~sta August 17. 1999 Comrnuni,ty Facilities District No. 99-1 Page 10 'i TABLE 5 .__, ~ Expected Development and Special Tax Revenue by Platoring Area within Zone B Community Facilities District No. 99-1 NUMBER EXPECTED OF TOTAL SPECIAL PERCENT PLANNING EXPECTED UNITS/ RESIDENTIAL TAX OF TOTAL AREA PRODUCT TYPE ACRES FLOOR AREA REVENUE REVENUE R-25 Residential PropeW/ 48 units 150,624 62,881 6.23% R-26 Resi&idal Property 52 units 137,124 60,566 6.00% R-27 Resickmtial Property 37 units 75332 36,646 3.63% R-28 Residential Property 56 units 93,072 49,391 4.89% R-29 Residential Property 83 units 128,733 70,533 6.98% R-30 Residmial Property 119 units 197,778 104,956 10.39% R-31 Residential Property 71 units 144,556 70,321 6.96% R-32 Residential Property 105 umts 259,560 117272 11.61% R-33 Residential Property 47 units 123,939 54,742 5.42% R-34 Residential Propen'ty 35 units 92295 40,766 4.04% R-35 Residential Property 36 units 112,968 47,161 4.67% R-36 Residential Property 62 units 153,264 69247 6.86% R-37 Residential Property 60 units 99,720 52,919 5.24% R-38 Residential Property 43 units 87,548 42,589 4.22% R-39 Residential Property 182 units 182,000 125,579 12.43% CPF-5 Commllitity Purpose 4.7 acres N/A 4,366 0.43% Facility Property TOTAL 1,036 units $1,009,935 100.00% Cit~ ofChula Vista /~8ust 17. 1999 Comraundty Facilities District No. 99-I Page I ] TABLE 6 Expected Development and Speeini Tax Revenue by Planning Area within Zone C Community Facilities District No. ~-1 NUMBER EXPECTED OF TOTAL SPECIAL PERCENT PLAlqN'ING EXPECTED UNITS/ RESIDENTIAL TAX OF TOTAL AREA PRODUCT TYPE ACRES FLOOR AREA REVENUE REVENUE R-49A Residential Property 88 taxits 179,168 $114,034 9.91% R-50 Residential Property 86 units 212,592 127,940 11.12% R-51A Residential Property 66 units 174,042 102,978 8.95% R-52A Residential Property 69 units 216,522 122,870 10.67% R-53 Residential Property 36 units 112,968 64,106 5.57% R-54A Residential Property 9 units 18,324 11,663 1.01% R-55 Residential Property. 57 units 116,052 73,863 6.42% R-56 Residential Property 77 umts 169,400 105,336 9.15% R-57 Residential Property 22 units 54,384 32,729 2.84% R-58 Residential Property 102 units 320,076 181,633 15.78% R-59 Residential Property 55 units 145,035 85,815 7.46% R-60 Residential Property 86 umts 212,592 127,940 11.12% TOTAL 753 units $1,150,907 100.00% 2. Caiculation ofRequired Average Special Tax Per Uait/Acre At the time the first building permit application for a Planning Area is submitted to the City, the CFD AdminisUator shall calculate the Required Average Special Tax Per Uuit/Acre. 3. Backup Special Tax due to Loss of Units/Acres If at any time after the Required Average Special Tax Per Unit/Acre has been calculated initially for a Planning Area, the CFD Administrator determines that based on tentative maps, Final Residential Subdivision maps, the Development Projection, and any other available information there has been a reduction in the total expected number of dwelling units or non-residential Acres within that Planning Area, then a Backup Special Tax payment shall be required for each lost unit or Acre prior to the issuance ofeny additional building permits or the recordation of any additional final maps for such Planning Area. City of Chula Vista l. ug~tst 17, 1999 Community Facilities District No. 99-I Page 12 " I 4. Backup Special Tax due to Loss of Residential Floor Area For Planning Areas that include Residential Property, before each building permit (or group of permits) is issued, the CFD AdminiShator shall calculate the Actual Avenge Special Tax Per Unit for the Planning Area. Efthe Actual Average Special Tax Per Unit is less than the Required Average Special Tax Per Unit then a Backup Special Tax paymen will be required prior to issuance of the building permit(s) included within the calculation 5. Calculation of Backup Special Tax The Backup Special Tax payment amount will be calculated using the lorepayment formula described in ~eetion I. 1, with the following exceptions: (i) if the Backup Special Tax is required as a result of Section E.3, then the amount used in Paragraph No. 1 of the prepayment formula described in Section El shall equal the number of lost units or Acres, as applicable, times the Required Average Special Tax Per Unit/Acre. In the event Residential Property as identified In Tables 4, 5, and 6 is rezoned in whole or part to non-residential property, the CFD Administrator shall determine the Maximam Anmml Special Tax revenue by using the Developed Property rates applicable to such non- residential property and the amount so derived shall be applied as a reduction to the amount determined in the preceding sentence; (ii) ff the Backup Special Tax is required as a result of Section E. 4, then the amount used In Paragraph No. 1 of the prepayment formula described in Seelion I. 1 shah equal the difference between the Actual Average ~'-- Special Tax Per Unit and the Required Average Special Tax Per Unit times the sum of the number of units for which permits are being issued plus the number of units within the Planning Area for which building permits have previously been issued. The amount determined pursuant to the preceding sentence shall be reduced by the balance in the Backup Special Tax Fund that has been established for such Planning Area; (iii) in Paragraph No. 7 of the prepayment formula described In Seelion I.I, eompnte the amount needed to pay interest on the Bond Redemption Amount until the fixst redemption date that occurs after five years from the date of the first Backup Special Tax payment in the Planrang Area; (iv) any Backup Special Tax payments received for a Planning Area (less Administrative Fees and Expenses) shall be deposited into the Backup Special Tax Fund for that Planning Area and disbursed pursuant to the Indenture; and (v) the Maximum Annual Special Taxes applicable to property within a Planning Area shall not be reduced or relieved as a result of payment of the Backup Special Ta~ 6. Use/Release of Backup Special Tax Payments When a Planning Area roaches full buildout (i.e., all expected building permits have been issued), the CFD Administrator shall calculate the actual Developed Property Maximum ~6amual Special Tax revenues that will be generated from such Planning Are~ Efthe ac.~ml Developed Property Maximum Annual Special Tax revenues are greater than or equal to 1.1 times that Planning Area's Share of Annual Debt Ser~ice, the balance in the City of Chula } ~sta CommunitF Facilities District Aro. 99-1 August 17, 1999 Page 13 ~ Backup Special Tax Fund shall be returned to the payer. If Backup Special Taxes have .': been paid by more than one entity; the mount of Bactmp Special Taxes returned to each payer shall be in proportion w the mount paid by each entity. If the actual Developed Propen'y Maximum Annual Special Tax revenues are less than 1.1 times that plnnning Ama's Sham of Annual Debt Service, then to the extent neeessavj to generate 110% coverage, the balance in the Backup Special Tax Fund shall be used to nxleem bonds on the next available redemption date. Any moneys remaining in Backup Special Tax Fund shall be returned to the payer. If a playnine Area has not reached full buildout within five years after the first payment of Baclmp Special Taxes for such p]annin,,~ Area, then all moneys in the Baclmp Special Tax Fund shall be used to redeem bonds on the next available redemption date. F. EXEMPTIONS No Special Tax shall be levied on: up to 517.5 Acres of property Owner Association Property and Public Property. Tax-exempt status will be irrevocably assigned by the CFD Administrator in the chronological order in which property becomes Property Owner Association Property or Public Properly. After the limit of 517.5 exempt Acres has been reached, the Maximum/~,nnllal Special Tax obligation for any additional Public Pwperty shall be prepaid in full pursuant to Section 1.1, prior to the tran~fer/declication of such property. Until the Maximum Annual Special Tax obligation for any such property is prepaid, the property shall continue to be subject to the levy of the Special Tax as Undeveloped Property. Taxable Property Owner Association Property shall be subject to the levy of the Special Tax Underdeveloped Property and shall be taxed Proportionately as part of the third step in Section D above, at up to 100% of the Maximum Annual Special Tax for Taxable Property Owner Association Property. G. REVIEW/APPEAL COMMITTEE The Council shall establish as pan of the proceedings and administration of CFD No. 99-1 a special three-member Review/Appeal Committee. Any landowner or resident who feels that the amount of the Special Tax levied on their Assessor's parcel is in error may file a written notice with the Review/Appeal Committee appealing the amount of the Special Tax levied on such Assessors Parcel. The Review/Appeal Cornmince may establish such procedures, as it deems necessary to undertake the re~ jew of any such appeal. The Review/Appeal Committee shall interpret this Rate and Method of Apponioument and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals as herein specified. The decision of the Review/Appeal Committee shall be final and binding as to all persons. August 17. 1999 C i .ty of Chula Fista page 14 Comrauni(v Facilities District :Vo. 99-1 H. MANNER OF COLLECTION --~ The annual Special Tax shall be collected in the same manner and at the same time as ordinary advalorem property taxes; provided, however, that CFD No. 99-1 may directly bill the Special Tax, may collect Special Taxes at a different time or in a different mnnner if llecessary to meet ils finnncial obli~ons, and tony covellailt to foreclose and may actually foreclose on Assessors Parcels, which are delinquent in the payment of Special Taxes. Tenders of Bonds may be accepted for payment of Special Taxes upon the terms and conditions established by the Council pursuant to the Act. However, the use of Bond tenders shall only be allowed on a ease-by-case basis as specifically allproved by the Council. L PREPAYMENT OF SPECIAL TAX The following definitions apply to this Section I: "CFD Public Facilities means either $31.6 million 1999 dollars, which shall increase by the Construction Inflation Index on July I, 2000, and on each July 1 thereafter, or such lower number as (i) shall be determined by the CFD Administrator as sufficient to proVide the public facilities under the authorized bonding program for ~ No. 99-1, or (ii) shall be determined by the Council concurrently with a covenant that it will not issue any more Bonds to be supported by Special Taxes levied under this Rate and Method of Apportionment as described in Section D. "Construction Fund"means an account specifically identified in the Indentlife to hold funds that are curren~y available for expenditure to acquire or construct public facilities eligible under the Act. "Construction Inflation Index" means the annual percentage change in the Engineering News-Record Building Cost Index for the City of Los Angeles, measured as of the calendar year, which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the CFD Administrator that is reasonably comparable to the Engineering New-Record Building Cost Index for the City of LOS Angeles. "Future Facilities Costs" means the CFD Public Facilities minus public facility costs available to be funded through existing construction or escrow accounts or funded by the Outstanding Bonds as defined in Section & minus public facility costs funded by interest earnings on the Constraction Fund actually earned prior to the date of !0repayment, and minus public facilities costs paid directly with Special Taxes. "Outstanding Bonds" means all previously issued Bonds, which will remain outstanding after the first roterest and/or principal payment date following the current Fiscal Year, Ci~ ofChula ~ista ,4u~tst 17, 1999 Comrtmni~ Facilities District No. 99-1 Page 15 excluding Bonds to be redeemed at a later date with the proceeds of prior prepayment of Maximum Annual Special Taxes. 1. Prepayment in Full The Maximum Annual Sp~c'tal Tax obligation may only be prepaid and permanently satisfied by an Assessors Parcel of Developed Property, Und~lopeNi Propert7 for which a building permit has been issued, or Public Property. The Maximum Annual Special Tax obligation applicable to such Assessor's Parcel may be fully prepaid and the obliption of the Assessor's Parcel to pay the Spec'utl Tax permanently sati~ed as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Assessors Parcel at the time of prepayment An owner of an Assessors Pared intending to prepay the Maximum Annual Special Tax obli~oafion shall provide the CFD Administrator with written notice of intent to lyrepay. Within 30 days of receipt of such wriUen notice, the CFD Admini.~tor shall notify such owner of the prepayment mount of such Assessors Parcel. The CFD Admini~Uator may charge a reasonable fee for providing this figure. Prepayment roust be made not less than 45 days prior to the next occurring date that notice ofrederoption of Bonds from the proceeds of such prepayment may be given to the Trustee pursuant to the Indenture. The P~payment Amount (defined below) shall be calculated as summarized below (capitalized rex'ms as defined below): Bond Redemption Amount plus Redemption Premium plus Future Facilities Amount plus Defeasance Amount plus Administrative Fees and Expenses less Reserve Fund Credit less Capitalized Interest Credit Total: equals Prepaymem Amount As of the proposed date of prepayment, the Prepayment Amount (defined below) shall be calculated as follows: Paragraph No.: 1. For Assessor~s Parcels of Developed Property, compute the Maximum Annual Special Tax for the Assessors Parcels to be prepalcL For Assessor's Parcels of Undeveloped Property m be prepaid, compute the Maximum Annual Spee'ml Tax forthat Assessor's Parcel as though it was already designated as Developed Property, based upon the building permit, which has already been issued for that Assessors Parcel. For Assessors Parcels of public Property to be prepaid, compute the Maximum Annual Special Tax for that Assessors Parcel. City of Cilia F#sta Aug~tst 17, 1999 Comm~mity Facilities District l~ro. 99-1 Page 16 2. Divide the Maximum Anntla] Special Tax computed pursuant to paragraph 1 by the sum of the total expected Special Tax revenues in Tables 4, 5, and 6 in Section E, ~xclnding any Assessors Parcels, which have been prgtmicL 3. Multiply the quotient computed pursnnnt to paragraph 2 by the Out~kalding Bonds t0 compute the mount of Outstanding Bonds to be retired and prepaid (the "Bond Redemption ilraount '~. 4. Multiply the Bond R~leanption Amount computed pungent to paragraph 3 by the applicable redemption premium, if any, on the Outsmdln~ Bonds to be redeemed (the "Redemption .~Premilgn'~. 5. Compute the Future Facilities Costs. 6. Multiply the quotient computed pursuant to paragraph 2 by the mount determined pursuant to paragraph 5 to compute the mount of Future Facilities Costs to be prepaid (the "Future Facilities Amount'~. 7. Compute the mount needed to pay interest on the Bond Redemption Amount f~om the lust bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds. 8. Confirm that no Special Tax delinquencies apply to stmh Assessors Parcel 9. Determine the Special Tax~s levied on the Assessors Parcel in the ourrent Fiscal Year, which have not yet been paid. 10. Compute the minimum umoont the CFD Admini.,h-ator reasonshly ~ to derive from the reinve~tment of the Prepayment Amount less the Future Facilities Axnount and the Administrative Fees and Expemes from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment. 11. Add the amounts computed pursuant to paragraphs 7 and 9, and subtract the amount computed pursuant to paragraph 10 (the "Defeasance Araowlt'~. 12. Verify the administrative fees and expenses of CFD No. 99-1~ including the costs of computation of the prepaymenL the costs to invest the prepayment proceeds, the costs of redeeming Bonds, and the costs of recording any notic.~s to evidonc~ the prepayment and the redemption (the '~dministrative Fees and Expenses'~. 13. The reserve fund credit (the "Reserve Fund Credit9 shall equal the lesser of: (a) the expected reduction in the reserve requimmgnt (as defined in the Indenture ), ff any, associated with the redemption of Outstanding Bonds as a result of the prepayment, Ci~ofChula F~sta A~g~st 17, 1~9 Com~ttu.lv Facilities Dis~r~cl No, 99-1 Page 17 or (b) the mount derived by su't,.'u~cling the new reserve requirements (as defined in .--- the Indenture) in effect after the.redemption of Outsland/ng Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such mount be less than zero. 14. If any capitalized interest for the OtltS~ndln~ Bonds will not have been cxpended at the lime of the first interest and/or principal payment foilowlnE the cun~nt Fiscal Y~ar, a ca~|iTP, d ~ ~ $ha[.I b~ i~.[~lLtIt~d bit multiplying the quotiem computed pursuant to paragraph 2 by the cxpecl~l balance in the capihliTtxl ~ fund after such first interest and/or principal payment (the "Capitalized Interest Credit'~. 15. The Maximum Av~nual Special Tax propayment is equal to the sum of the amounts computed pursuant to paragraphs 3, 4, 6, 11, and 12, less the mounts computed pursnant to paragraphs 13 and 14 (the "Prepayment 4mount'~. 16. From the Prepayment Amount, the amOUHtS computed pursuant to paragraphs 3, 4, 11, 13, and 14 shall be deposited into the appropriate fund as established under the Indemure and be used to retire Outstanding Bonds or make debt service payments. The amount computed pursuant to paragraph 6 shall be deposited into the Consreaction Fund. The amount computed pursuant to paragraph 12 shall be retained by CFD lqo. 99-1. The Prepaymcm Amount may be sufficient to redeem other than a $5,000 increment of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be ~iained in the appropriate fund established under the Indenture to be used with the next prepaymcnt of bonds or to make debt service payments. As a result of the payment of the current Fiscal Yea~s Special Tax levy as determined under paragraph 9 (above), the CFD Administrator shall remove the cutx'eut Fiscal Year's Special Tax levy for such Assessor's Parcel from the County tax rolls. With respect to any AssessoPs Parcel that is prepaid, the Board shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Special Taxes and the release of the Special Tax lien on such Assessors Parcel and the oblivion of such Assessor's Parcel to pay the Special Tax shall cease. Notwithstaodlng the foregoing no Special Tax prepayment shall be allowed tinless the mount of Maximom Annual Special Taxes that my be levied on Taxable Property within CFD No. 99-1 both prior to and after the proposed prepayment is at least 1.I times the maxinlam anntlal debt service on all Outstanding Bonds. Tenders of Bonds in prepayment of Maximom Annual Special Taxes may be accepted upon the terms and conditions established by the Council pursuant to the Act. However, Ci.ty ofCImla I~tsta Allgrist 17. 1999 Consra~6.ly Fa~l~ties Distr~ct No. 99-1 Page 18 the use of Bond tenders Shall only be allowed on a case-by-case basis as specifically ~ appwved by the Council. """" 2. Prepayment in Part The Maximum Annual Special Tax on an Asseaso~s Parcel of Developed Property or an Assessors Parcel of Undeveloped Property fur which a building permit has been issued may be partially prepaid. The mount of the pfel~ytu~,at shall be calculated as in Section I. 1; except that a partial prepayment shall be calculated accurdinZ to the following formulsz PP=PExF These t~xms have ~he following menning; PP = the partial prepayment P~ = the Prepayment Amount calculated according to Section I. 1. F = the percent by which the owner of the Assessors Parcel(s) is partially prepaying the Maximum Annual Special Tax. The owner of an Assessors Parcel who deshes to partially prepay the Maximum Annual Special Tax shall notify the CFD Admiui~h~tor of (i) such owners intent to partially propay the Maximum Annual Special Tax, (ii) the percentage by which the Maximum ,Artmini Special Tax shall be prepaid, and (Hi) the company or agency that ._~ will be acting us the escrow agent, if applicable. The CFD Admini-qrator shall provide the owner with a statement of the mount required for the partial prepayment of the Maximum Annual Special Tax for an Assessors Parcel within 30 days of the request and may charge a reasonable fee fur providing this service. With respect to any Assessors Parcel that is partially prepaid, the City shall {i) distribute the funds remitted to it according to Paragraph 16 of Section I_ l, and (ii) indicate in the records of CFD No. 99-I that there has been a partial prgpayment of the Maximum Annual Special Tax and that a portion of the Maximum Annual Special Tax equal to the outstanding percentage ( 1.00 - F) of the remaining Maximum Annual Special Tax shall continue to be authorized to be levied on such Assessors Parcel pursuant to Section D. J. 'I'ERM OF MAXIMU1VI ANNUAL SPECIAL TAX ~ The Maximum Annual Special Tax shall be levied commencing in Fiscal Year 1999- 2000 to the extent necessary to fully satisfy the Special Tax Requirement for a period no longer than the 2034-2035 Fiscal Year. Ci,w ofChula Ftsta ,4ugust 17. 1999 Community Fadlilies Dist~ct No. 99~1 Page 19 COMMUNITY FACILITIES DISTRICT SPECIAL TAX REPORT lVIELLO-ROOS COM~IUN1TY FACILITIES ACT OF ]982 COMMUNITY FACIL1TW-S DISTRICT NO. 99-10TAY RANCH SPA ONE - PORTIONS OF VILLAGE ONE, VILLAGE FIVE AND VHIAGE ONE WEST The City of Chula Vista 476 Fourth Avenue Chula Visla~ California 91910 MeGHI Martin Serf, Inc. 310 Third Avenue, Suite C-5 Chula Vista, California 91910 August 17, 1999 TABLE OF CONTENTS Page L/NTRODUCrZON 1 IL PROJECT DESCRIFrlON ..................................................................... llL DESCRWHON AND E~-rnvlATED COST OF PRO1POSRD FACIIITn~ ..................... 3 A. Description ofProposedPublic l,mprovments ................................. 3 B. Estimated Cost of Proposed Public Improvements .............................. 4 IV. BONDED INDF_~rr, ONESS AND INCIDENTAL EXPENSES .................................... 5 A. Projectrot Bond Sales ............................................................... B. Incidental Bodd Issuance Expenses to be Included in the Proposed Bonded Indebt~lness ........................................................................ C. Incidental Expenses to be Included in the Anmml IL'vy of Special Taxes ... 5 V. RATE AND METHOD OF APPORTIONMENT OFTliE SPECIAL TAX ....................... 6 A. F_,xplanation for Special Tax Apporfic, i~nent ....................................6 B. Maximum Annual Special Tax Rates ............................................ 7 C. Baclmp Special Tax ................................................................8 D. Accuracy ofhfformation ..........................................................8 VL BOUNDA]IIIi',¢~ OF COMMUNITY FACILrVHgS D~S-x'RICT ................................... 9 VH. GENERAL TERMS AND CONDrnONS ....................................................... 10 A. Substitution Facilities ..............................................................1 B, Appcmls 10 EXITHIlTS Exhibit A Rate and Method of Apportionment Exhibit B Assigned Maximum Special Tax Rates for Developed Property Exhibit C Maximtun Special Tax Rates for Undeveloped and Taxable Property Owner Association Property Exhibit D Boundary Map ~.~ L INTRODUCTION WHEREAS, the City of Chula Vista did, pursuant to the provision of the Mello-Roos Community Facilities Act of 1982, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (!~reinaf~r referred to as the ~Act"), and specifically Section 53321.5 thereof, ex},,=ssly order the filing of a written '~eporC' with the legislative body of the proposed Community Facilities District This Community Facilities District being Community Facilities District No. 99-1 (Omy Ranch SPA One - Portions of Village One, Vffiage Five and Village One West) shall hereinafter be referred to "CFD No. 99-1"; and WHEREAS, the Resolution Ordering and Directing the Preparation of a Report for Proposed Community Facilities District No. 99-1 did clina that said Report generally contain the following: FACILITIES: A full and complete description of the public facilities the acquisition of which is proposed to be financed through the CFD. COST ESTIMATE: A general cost estimate setling forth costs of acquiring such facilities. SPECIAL TAX: Further particulars and documentation regarding the rote and method of --- apportionment for the authom. ed special tat NOW, THEREFORE, I, John Lippitt P.E., the Director of Public Works of the City of Chula Vista, and the appointed responsible officer directed to prepare thi~ Special Tax Report or cause the Report to be prepared pvxsnnnt to the provisions of the Act, do hereby submit ,hie Report. Communi .ty Facilities Distr~ct No. 99-1 Page 1 Otay Ranch SPA one - Portions of Village One. P~llage Five and Village One West August 17, 1999 IL PROJECT DESCRIPTION CFD No.99-1 encompasses approximately 978 gross acres of land located in the portion of the south San Diego City of Chula Vista known as Otay Ranch Of,hi-~ acr--~oe, approximately 660 acres axe expe~.ed to be developed. At buildout, it is expected that CFD No.99-1 will consist of approximately 2,705 Single Family Residences, 1,352 Multifamily Residences, 8.1 Acres of Commercial Uses, and 10.7 Acres of CommBrtity PtI~se Facilities (chllrches, daycaxe, oK:.). The combined Single Family and Multifamily Uses are anticipated to generate 7,465,067 square feet of residential building square foolage. The Commercial, CommBllity Pllrpose Facility Property and Taxable Homeowner Association CHOA) Parcels are anticipated to generate 18.8 net taxable acreage. CFD No.99~1 ((3my Ranch SPA One- Portions of Village One, Village Five and Village One West) is also divided into the following three zones: · Zone A: applies only to Developed Property, and means a specific geographic location known as the Village One area as depicted on Exhibit D; ·Zone B: applies only to Developed Property, and means a specific geographic location known as the Village Five area as depicted on Exhibit D; and ·Zone C: applies only to Developed Property, and means a specific geographic location known as the Village One West area as depicted on Exhibit D; Table 1, below, summarizes the mount of improved residential building square footage, number "~ of units and net laxable Commercial and Commtlnity Pttrpose Facility Property expected at buildout of CFD lqo.99-1 (Otay Ranch SPA One - Portions of Village One, Village Five and Village One West), by zone. TABLE 1 CATEGORY SQUARE FEET OF NUMBER OF NUMBER OF RESIDENTIAL UNITS ACRES FLOOR AREA ZONE A: VILLAGE ONE 3,495,399 2,268 14.1 ZONE B: VILLAGE FIVE 2,038,513 1,036 4.7 ZONE B: VII LAGE FIVE 1,931,155 753 0 CFD No. 99-1 allows for the future annexation of parcels as depicted on Exhibit D (Future Annexation Parcels). The area within the Future Annexation Parcels encompasses approximately 36 gross acres. At buildout, it is expected that the Future Annexation Parcels, if and when annexed into CFD No. 99-1, would include approximately 154 single family , ~,sidences. Community. Facil~es District No. 99-1 Page 2 Otay Ranch SPA One - Portions of Ifdlage One. F'dlage F'tve and Village One West August 8, 1999 HI. DESCRWTIONANDESrLMATEDCOSTOFPROPOSEDFA(3Lrrn~$ A. DescriUtion of Pronosed Public lmorovements A community facilities district may provide for the purchase, construction, ex~ngion, or rehabilitation of any real or tangible property, including public facffities and infrastmctm~ improvements with an estimated useful life of five (5) years or longer, which is necessary to meet increased demands placed upon local agencies as a result of development or rehabilitation occurring within the community facilities district. In addition, a community facffities disU'ict may pay in full all mounts necessary w eliminate any fixed sDecial assessment liens or to pay, repay, or defease any obligation to pay or any indebtedness secured by any tax, fee, charge, or assessment levied within the area of the communily facilities district. The facilities described in this Report are all facilities which the legislative body creating CFD No.99-1 is authorized to own, consWact, or finance, and which are required, in part, to adequately meet the needs of CFD No.99-1. In addition, the facilities meet the criteria for authorized public facilities set forth in the City's Statement of Goals and Policies regarding the establishment of Commullity Facilities DisU-icts. The actual facilities described heroin are those currently expected to be required to adequately meet, in part, the needs of CFD No.99-1. Because the actual needs of CFD No.99-1 arising as development progresses therein may differ f~om those currently anticipated, CFD No.99- 1 reserves the right to modify the actual facffities proposed herein to the extent CFD No.99-1 deems necessary, in its sole discretion to meet those needs. The Special Taxesx required to pay for the construction or financing of said facffifies will be apportioned as described in the Rate and Method of Apportionment of the Special Tax for CFD No.99-1 (Otay Ranch SPA One - Portions of Village One, Village Five and Village One West) (see Exhibit A). Proceeds of the proposed bonded indebtedness of CFD No. 99-1 will be used to finance backbone streets and associated improvements (i.e., grading, sewer, streets, landscaping, utilities, etc.), public facilities DIF Improvements, and pedestrian bridges. Following is a general description of the proposed facilities: · Olympic Parkway Phases 1 and 2 · Paseo Ranchero Phase 2 · East Palomar within Village One West · East Palomar within Village Five ~ Please note that all ct~italized terms used herein, unless ot~rwise indicatet~ shall have the rtwtmings defined i, the Rate trod Method cf .4pportio.ment prepared for CFD No. 99-1. Community Facilities Distrla Na~ 99-1 Page 3 Outy Ran& SPA One - Portions of Fillage On~ Hllage Hve and [allage One West August 17, 1999 * Those facilities to be financed from the proceeds of public Facilities Development Impact Fees, payable as a condition of development of property within CFD No.99-1 · Those facilities to be financed from the proceeds of Pedestrian Bridges Development Impact Fees, payable as a condition of development of property within CFD No.99-1 · Slope Landscaping · Environmental lv~tigafion Costs for Olympic Parkway B. Estimated Cost of Proposed Public Imnrovements The facilities and the e,~imafed costs herein are subject to review and confirms?ion. The costs listed in Table 2, are estimates only, based upon cun'ent con~h uction and land costs and actual costs may differ from those est/mates herein_ Based on the current CFD No.99-1 bond sizing estimate of approximately $39.5 million, only a portion of these costs are expected to be financed with CFD bond proceeds. TABI ,F, 2 Facilities Improvements Total Estimated Cost Olympic Parkway Phase 1 $ 35.2 Mill/on Olympic Parkway Phase 2 $ 5.4 l~illion Pasen Ranchew Phase 2 $ 43 Million Palomar (Village One West) $ 4.5 Million Palomar (Village Five) $ 2.0 Million Slope Landscaping $ 5.0 Million Public Facilities Developmere Impact Fees $ 8.1 Million Pedestrian Bridge Impact Fees $ 1.3 Million Community Fadlitles Diraia No. 99-1 Page 4 Otav Ranch SPA One - Portions of [qllaee One. FillaCe l~l,e and F'dlage One W~t August 8, 1999 IV. BONDED INDEBTEDNESS AND INCIDENTAL EXPENSES A. Project Bond Sales The current bond amount estimated for CFD No. 99-1 is $60 million (exclusive of the Future Annexation Parcels), and it is anticipated that a single bond will be issued. The bonds issued by CFD No.99-1 will meet the terms and conditions of special tax bonds set forth in the City's Statement of Goals and Policies Regarding the Establishment of Community Facilities ,Districts. B. Incidental Bond Issuance Exnenses to be Included in the Proposed Bonded Indebtedness Pursuant to Section 53345.3 of the Act, bonded indebtedness may include all costs and estimated costs incidental to~ or connected with, the accomplishment of the purpose for which the proposed debt is to be incurred, including, but not limited to, the costs of legal, fiscal, and ~nancial consultant fees; bond and other reserve funds; discount fees; interest on any bonds of the district due and payable prior to the expiration of one year from the date of completion of the facilities, not ~o exceed two years; election costs; and all costs of issuance of the bonds, including, but not limited to, fees for bond counsel, costs of obtaining credit ratings, bond insurance premiums, fees for letters of credit, other credit enhancement costs, printing costs, and those Administrative Costs as defined by Exhibit A. For the bonds proposed to be issued by CFD No.99-1, capitalized interest is estimated to be capifaliTed for one year. The reserve fund is estimated to be the maximum allowable under Federal Tax Law. All other incidental bond issuance expenses is estimated at 4 percent of the face amount of the bonds. C. Incidental Expenses to be Included in the Annual Lew of Snecial Taxes Pursuant to Section 53340 of the Act, the proceeds of any special tax may only be used to pay, in whole or part, the cost of providing public facilities, services and incidental expenses. As defined by the Act, incidental expenses include, but are not limited te, the cost of planning and des~pning public facfiines to be financed, including the cost of environmental evaluations of those facilities; the costs associated with the creation of the disu'ict, issuance of bonds, determination of the amount of taxeS, collection of taxes, payment of taxes, or costs otherwise incurred in order to carry out the authorized purposes of the district; any other expenses incidental to the consm~ction, completion, and inspection of the authorized work; and the retirement of existing bonded indebtedness. While the actual cost of administering CFD No.99-1 may vary, the currently budgeted amount of special taxes which can be collected is $125,000 in annual administrative expenses prior to buildout of the project and $75,000 per year subsequent to buildout The actual cost will likely change over the life of the district Therefore the administrative budget for CFD No. 99-1 will be set each year, and could be more than the current budget // Community. Fadllti~ Distria No. 99-1 Page 5 OtaZl, Ranch SPA One - portions of Fillage One, l. qllage Five and F~llage One West August 17, 1999 V. RATE AND METHOD OF APPORTIONMENT OF ~ SPECIAL TAX All of the property located w~thin CFD No.99-1, unless exe~npted by law, shah be taxed for the purpose of providing necessary facilities to serve CFD No.99=1. Pursuant to Section 53325.3 of the Act, the tax imposed "is a Special Tax and not a special assessment, and them is no requirement that the tax be apportioned on the basis of benefit to any property.' The Special Tax "may. be based on bei~t received by parcels of real property, the cost of makl,g facilities or authorized services available to each parcel or other masonable basis as dotc4min~d by the legislative body," although the Special Tax may not be apportioned on an ad valorera basis pursuant to Article Xlrr~ of the California Constitmion~ As shown in Exhibit A, the mended Rate and Method of Apportionment provides information sufficient to allow each prop~ty owner within CFD No.99-1 to estimate the maximum annual Special Tax he or she will be required to pay. Sections A through C, below, provide additional information on the Rate and Method of Apportionment of the Special Tax for CFD 99-I. A. Exl}lanation for Snecial Tax Annortionment When a community facilities district is formed, a Special Tax may be levied on each parcel of taxable property within the CFD to pay for the consUuction, acquisition and rehabilitation of public facilities, to pay for authorize~l ser,,ices or to repay bonded indebtedness or other related exl~nses incuncd by CFD No,99-1. This Special Tax must be apportioned in a reasonable manne~, however, the tax may not be apportioned on an ad valorem basis. When more than one type of land use is present w~thin a commu!lity facilities district, several criteria m~y be considered when apportioning the Special Tax. Generally, criteria based on building square footage, acreage, and land use are selected, and categories based on such criteria are established to differentiate between parcels of property. These categories are a direct result of the developer' s projected product mix, and are reflective of the proposed land use types within that community facilities district. Specific Special Tax levels are assigned to each land use class, with all parcels within a land use class assigned the same Special Tax rate. The Act does not require the Special Taxes to be apportioned to individual parcels based on benefit received. However, in order to insure fairness and equity, benefit principles have been incorporated in establishing the Special Tax rates for CFD No.99-1. The major assmption inherent in the Special Taxes rates set forth in the Rate and Method of Apportionment is that the level of benefit received from the proposed public improvements is a function land use. This assumption is borne out through an examination of commonly accepted statistical measures. For example, in measuring average weekday vehicle trip-ends, the Institute of Transportation Engineer's 1995 Trip Generation report identifies land use as the primary --~ determinant of ~p-end magnitude. Commercial land uses typically generate more trip- ends than do single family residential land use. Similarly, larger single family detached Cornmun~y Fadlities Disw~ No. 9~-1 Page 6 Ot .ay Ranch SPA O,e - Portions of Hllage 0~ ~'dla~e Fn, e and FallaRe One West Audit & 1999 dwellings typically generate a greater number of aip-eads than do smaller single family detached homes, and therefore, wilt'tend to received more benefit from road grading road landscaping and road improvements. Drainage and flood conlxol requirements gene~lly vary with the mount of impervious ground cover per parcel. It follows that lms~, homes which have more impervious ground cover will create relatively more drainage flow than smail~ homes. CFD No.99-1 (Olay Ranch SPA One - Portions of Village One, Village Five and Village One West) is divided into three district zones, described as: > Zone A: applies only to Developed Property, and means a specific geographic location known as the Village One area } Zone B: applies only to Developed Propemj, and mean~ a specific geographic localion known as the Village Five area; and > Zone C: applies only to Developed Property, and means a specific geographic location known as the Village One West area. Four Land Use Class Categories of Taxation have been established for CFD No.99-1. The categories axe defined as follows: ~-Residential Developed Parcels (single and multifamily residences) are taxed on the square footage of the building; >.Non-Residential Developed Parcels are taxed based on acreage ofthe parcel; } The Undeveloped Property Category includes all the parcels for which a building permit has not been issuecL The tax on Undeveloped Property is based on the total acreage of the parcel; and >-The Taxable Property Owners Association Property Parcels are taxed based on the acreage of the pamel, the same as Undeveloped Property. Based on the types of public facilities that are proposed for CFD No.99-1 and the factors described above, the Special Taxes assigned to specific land uses are generally proportionate to the relative benefits received by them, and, accordingly, the Special Taxes in CFD No.99-1 can be considered fair and reasonable. B. Maximum Annual Slaecial Tax Rates : Exhibit B lists the Maximum Annual Special Tax rates that may be levied in each zone, against Residential Property, Commercial Property and Community Purpose Facility Property within CFD No.99-1. Exhibit C lists the Maximum Special Tax Rates for Undeveloped Property and Taxable Property Owner Association Property within CFD No.99-1. Any Future Annexation Parcels that annex into CFD No. 99-1 will be subject to the Maximum Special Tax Rates specified in Exl~l>its B and C, and the Backup Special Tax (described below) of the applicable zone within which such .Future Annexation Parcel is located and its applicable land use category. Community Facilities Distric~ No. 99-I Page 7 Ot~, Ranch SPA One - Portions of I~llage On~ l ~tlage Five and Hllage One gFest August 17, 1999 The City Council will annually determine the actual mount of the Special Tax levy -'-- ) based on the method described m Exhibit A and subject to the maximum Special Tax rates contained in Exhibit B and Exhibit C. The City will levy a Special Tax to the extem neeessmy, snfficieut to meet the Special Tax Requirement. C. Baelm~ S~eeial Tax Payment of a one-lime Badrap Special Tax may be r~luimd prior to .the issuance of building l~tmits or recordation of a final map. Tables 4, 5, and 6 in Exlibit A identifies the mount of Special Tax revenue and development that is currently expected from each planning are~ If the CFD Administrator determines that the Special Tax revenue for a planning area will be reduced as a result of a reduction in the expected n~nnber of units, acres, or building square feet in such pbnning ~ then a Backup Special Tax payment will be requirec[ Upon annexation of Future Annexation Parcels within CFD No. 99-1, Tables 5 and/or 6 will be modified to include relevant land use information pursuant to the procedure described in Exhibit A. The mount of lhe Backup Special Tax payment will be calculated pursuant to Section E of Exhibit A. D. Accuracy ofhforma~on In order to establish the Maximum Annual Special Tax ra~ and the Backup Special Tax " as set forth in the Rate and method of Appordoument for CFD 99-1, McCrill Martin Self, Inc. has relied on information including, but not limited to absorption, land-use types, building square footage, and net taxable aureage which were provided to MeGill Martin Self, Inc. by others. MeGill Martin Self, Inc. has not independently verified such data and disclaims responsibility for the impact of inaccurate data provided by others, if any, on the Rate and Method of Apportionment for CFD 99-1, including the inability to meet the financial obligations of CFD 99-1. Community F~e;l~ Dhtria No. 99-1 Page 8 Otav Ranch SPA One- Portions of Hllage One, V~llage Five and F'dlage One West August 8, 1999 VL BOUNDARIES OF COMMUNITY FACIIJTIES DISTRICT The boundaries of CFD No.99-1 include all land on which the Special Taxes m~ be levied. A map of the area ineludexl within CFD No.99-1 is provided as i'bit D. Future Annexation Parcels of CFD No. 99-1 have also been identified on Exhibit D. Community F~dt;t;,s DisIlia Ntz 99-1 Page 9 Otay Ran& SPA One - Portions of Fillage One, ~llage Five and Fillage One West August 17, 1999 vn. AL TEnl ts ANO cor, romoss A. Su~m~on Facili~ ~e ~on of ~e p~c ~es, ~ ~ f~ hem~ ~ ~o~ ~ ~k ~. ~e final ~ nd lo~on of ~p~veme~ nd ~i~fi~ ~ be d~in~ u~n ~e ~on of final p~ ~d ~ifi~fio~. ~e ~ p~ my ~ow ~, ~ ~eu or mo~o~ to ~e ~o~s~ work ~ ~d~ ~ ~mpli~h ~e work of im~vem~ ~d ~ ~h s~on shall ~t be a c~ or m~i~on ~ ~e ~ ~ long ~ ~e fairies pro~de a se~ce ~d ~e of a ~ sub~ly ~mil~ m ~t ~ set fo~ ~ ~s R~o~. B. App~ls ~y l~do~er who feels ~t ~e mo~t of ~e S~cial T~ is ~ ~r may ~e a notice ~ C~ 99-1, ap~g ~e 1~ of~e Speci~ T~ p~nant to ~e proced~e s~c~ed ~ E~bit ~ ~ appro~ate, a representative of C~ No.99-~ roll ~cn m~ew ~e a~ ~ ff necess~, m~t m~ ~e appli~t. ff ~ ~m~ of ~e m~esenmtive ve~ ~t ~e mo~t of ~e S~ci~ T~ sho~d be mo~ed or c~ ~e~ ~ appro~ate, ~e Special T~ le~ s~ be coffeeted. Community Fo,~r,s~ llistria N~ 911-1 Page 10 Ot ,ay Ran& SPA One- Portions of Fillage One, Ftlla#e Five and ~qllage One West August 8, 1999 RESOLUTION NO. 19588 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING CONTRACT FOR THE INSTALLATION OF TRAFFIC SIGNAL SYSTEM AT PASEO RANCHERO AND EAST "J" STREET (TF-270) TO DBX, INC., AND APPROPRIATING FUNDS OF $83,000 FROM THE UNAPPROPRIATED BALANCE OF THE TRAFFIC SIGNAL FUND WHEREAS, on August 3, 1999, the Director of Public Works received the following four sealed bids from electrical contractors for the installation of traffic signal system at Paseo Ranchero and East "J" Street (TF-270): Contractor Bid Amount 1. DBX, Inc. $75,245.00 2. Lekos Electric, Inc. $79,015.00 3. Knox Electric, Inc. $81,548.00 4. T&M Electric dba Perry Electric $84,800.00 WHEREAS, the low bid amount of $75,245, which was received from DBX, Inc., is 16.4 percent lower than the engineer's cost estimate of $90,000; and WHEREAS, the total project cost is $142,200 which includes the bid amount of $75,245; $18,000 for design, inspection and administration; $30,055 for purchase of traffic control cabinet, mast arms, Emergency Vehicle Preemption System, internally illuminated street name signs, 250W HPSV luminaries and traffic signal standards; and $18,900 for contingencies (15 percent); and WHEREAS, the approved CIP budget for the project is $179,000, which includes requested funds of $120,300 from the Chula Vista Elementary School District and the Sweetwater Union High School District for their share (two-thirds) of the estimated construction cost, since the two Districts have been requesting the installation of such traffic signal; and WHEREAS, the City's Environmental Review Coordinator has reviewed the work involved in this project and determined that the project is exempt for CEQA under both CEQA Guidelines. Section 15061 (b) (3) and Section 15303, Class 3 (new construction or conversion of small structures); and WHEREAS, the source of funding for this project is the Traffic Signal Fund and contractors bidding this project were not required to bid based on paying prevailing wages to persons employed by them for the work under this contract; and Resolution 19588 Page 2 WHEREAS, no special minority or woman-owned business requirements were necessary for this project, however, disadvantaged businesses were encouraged to bid through the sending of the Notice to Contractors to various minority trade publications. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby accept the four bids and award the contract for the installation of traffic signal system at Paseo Ranchero and East "J" Street (TF-270) to DBX, Inc. in the amount of $75,245. BE tT FURTHER RESOLVED that the Mayor of the City of Chula Vista is hereby authorized and directed to execute said contract on behalf of the City of Chula Vista. BE IT FURTHER RESOLVED that the amount of $83,O00 is hereby appropriated from the unappropriated balance of the Traffic Signal Fund. Presented by Approved as to form by Resolution 19588 Page 3 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 31't day of August, 1999, by the following vote: AYES: Councilmembers: Davis, Moot, Salas and Horton NAYS: Councilmembers: None ABSENT: Councilmembers: Padilia ABSTAIN: Councilmembers: None S h i~ ~MaYo'~r't~ ATTEST: Susan Bigelow, City Cler STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 19588 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 31" day of August, 1999. Executed this 31" day of August, 1999. Susan Bigelow, City Clerk