Loading...
HomeMy WebLinkAbout2013/06/04 Item 02CITY COUNCIL AGENDA STATEMENT ~~ CITY OF CHULA VISTA JCJNE 4, 2013 Item 2 ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, DECLARING ITS INTENTION TO AUTHORIZE THE ANNEXATION OF TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT) AND IMPROVEMENT AREA "C" THERETO SUBMITTED BY: REVIEWED BY: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, ADOPTING AN ANNEXATION MAP SHOWING TERRITORY PROPOSED TO BE ANNEXED TO IMPROVEMENT AREA "C" OF COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT) DIRECTOR OF DE ELOPMENT SERVICES/ CITY MANAGE CITY MANAGE 4/STHS VOTE: SUMMARY ASSISTANT YES ~ NO ~X Baldwin and Sons LLC has requested the City conduct proceedings to consider the annexation of territory into Improvement Area C of Community Facilities District No. 97-2 (Preserve Maintenance District) (CFD 97-2). The conditions of approval of the tentative map for Otay Ranch Village Two require that said annexation be a condition of the first final map for the project. CFD 97-2 was formed in 1998 and funds the maintenance of areas that have been conveyed to the preserve in accordance with the Otay Ranch Resource Management Plan. The City has retained the services of MuniFinancial as special tax consultant and Best, Best and Krieger, LLP as legal counsel to provide assistance during the proceedings. Tonight's action will initiate the formal proceedings to consider the annexation of Otay Ranch Village Two to CFD No. 97-2, Improvement Area C. 2-1 June 4, 2013 Item No.~ Page 2 of 5 ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because the creation of government funding mechanism is not considered a project; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary RECOMMENDATION Council adopt the resolutions. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION In July 1998, Council formed CFD No. 97-2 (Preserve Maintenance District). CFD 97-2 was originally divided into two Improvement Areas: Improvement Area A and Improvement Area B. Improvement Area A funds the costs of the Resource Monitoring Program as well as Preserve Operations and Maintenance within the boundaries of the Otay Ranch Preserve. Improvement Area B only funds the Resource Monitoring Program within that same area. Improvement Area C was formed in 2003 in conjunction with the annexation of Brookfield Shea Otay Village Eleven into CFD 97-2 and funds both the Resource Monitoring Program and Preserve Operations and Maintenance that aze consistent with the requirements of the Otay Ranch Resource Management Plan Phases I and II and include the pro-rata share of administrative expenses of CFD No. 97-2. Territory Proposed to be Annexed The proposed boundaries of the territory proposed to be annexed to Improvement Area C of CFD No. 97-2 encompass the pazcels located within the Otay Ranch Planning Area 12, an Urban Village of approximately thirty four (34) acres located just south of Olympic Pazkway, east of SR125, west of Eastlake Pazkway and bifurcated by Town Center Drive. Baldwin and Sons, LLC owns 100% of the property within the proposed annexation. Planning Area 12 is proposed to contain approximately 448 multi-family apartments (16.61 acres), a 257-room hotel (6.08 acres), a pazk (1.21 acres) and a commercial area (10.41 acres). Staff has reviewed the proposed annexation boundary map, identified as Annexation Map No. 7 to CFD 97-2, and has found it ready and acceptable for approval by Council. A reduced copy of the map is presented in Attachment 2. Proposed Special Tax The rate and method of apportionment of the special taxes authorized to be levied within the existing boundaries of CFD 97-2 has four categories of taxation, as follows: • Developed Parcels (Single-Family and Multi-Family Residences) are taxed based on the squaze footage of the structure. Industrial and Commercial Parcels aze taxed on the acreage of the pazcel. 2-2 June 4, 2013 Item No. 2 Page 3 of 5 • The Final Mapped properties, which include all single-family and multi- residential pazcels and all industrial and commercial parcels, for which a building permit has not been issued are taxed on acreage of the pazcel. • Property not categorized as Developed or Final Mapped Property is taxed on acreage of the parcel. • The Exempt Category includes all publicly owned parcels and Homeowner's Association parcels. Developed Parcels are those pazcels for which a building permit has been issued. The proposed maximum special tax rate in the rate and method of apportionment was determined at the time of formation of CFD 97-2 in 1998. Collection of Taxes At the beginning of each fiscal year the City shall determine the amount of the Special Tax Liability (budget plus reserve) of each Improvement Area. Then, the special taxes will first be levied within each of the Improvement Areas on the Developed Pazcels therein to fund the Special Tax Liability for such Improvement Area. If this pool of funds is not enough to fund the Special Tax Liability for such Improvement Area, as may be the case in the early yeazs of development, the district will levy the special tax on the vacant land within such Improvement Area starting with Final Mapped Property. The buffer of having the vacant land covering any portion of the Special Tax Liability not funded from special taxes levied on Developed Parcels within an Improvement Area will disappear once the Improvement Area has been fully developed. If the Special Tax Liability for any fiscal year for an Improvement Area is less than the maximum special tax authorized to be levied on the Developed Parcels within such Improvement Area, the actual rate of the special taxes to be levied on such Developed Property in that specific year will be reduced accordingly. Following is a brief discussion of some key issues regarding the "Rate and Method of Apportionment (RMA) of Special Taxes" proposed to be established for territory proposed to be annexed to Improvement Area C of CFD 97-2 (See Exhibit "A" for full description of RMA): • The Maximum Special Tax Rates increases each year by a factor equal to the annual percentage change in the Consumer Price Index. • The RMA provides that the annual budget for any year may include an amount deemed necessary to maintain an adequate level of this operating reserve fund. • The maximum special tax rates are based on the original Rate and Method of Apportionment of special taxes established for CFD 97-2 when CFD 97-2 was 2-3 June 4, 2013 Item No. 2 Page 4 of 5 formed. If the actual square footage of residential development and/or the acreage ofnon-residential (industrial and commercial) development within Improvement Area C meets or exceeds the projections on which the special tax rates were based, the actual special tax rate necessary to be levied annually within Improvement Area C to fund the Special Tax Liability for Improvement Area C may be less than the authorized maximum special tax. Approved Maximum Special Taxes The approved maximum special tax rates for fiscal year 2013/14 for Improvement Area C of CFD 97-2 are as follows: Table 1 -Maximum Special Tax for Monitoring Special Tax Category Maximum Special Tax (Monitorin Residential er s uare foot $0.0054 Non-Residential er acre $87.3126 Final Ma Pro erty er acre) $87.3126 Undevelo ed Pro ert er acre $56.3516 Table 2 -Maximum Special Tax for Operations & Maintenance Special Tax Category Maximum Special Tax (O erations & Maintenance) Residential er s uare foot) $0.0086 Non-Residential ( er acre $138.6152 Final Ma Pro ert er acre $138.615.2 Undevelo ed Pro ert er acre $89.4627 Resolutions There aze two resolutions on tonight's agenda, which, if adopted, will accomplish the following: The RESOLUTION ADOPTING THE ANNEXATION MAP is the formal action adopting the Annexation Map No. 7 setting forth the boundaries of the territory proposed to be annexed to Improvement Area C of Community Facilities District No. 97-2 (Preserve Maintenance District). The RESOLUTION OF INTENTION is the jurisdictional resolution declaring the intention of the City Council to authorize the annexation of the territory within Annexation Map No. 7 to Improvement Area C of Community Facilities District No. 97- 2-4 June 4, 2013 Item No. 2 Page 5 of 5 2 (Preserve Maintenance District), thereto, to authorize the levy of a Special Tax, and to set the time and place for the public heazing. Future Actions The public hearing and consideration of the adoption of a resolution submitting the authorization for the levy of special taxes to the qualified electors are scheduled for the City Council meeting of July 9, 2013, at 2:00 P.M. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the property, which is the subject of this action. Staff is not independently aware, nor has staff been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. CURRENT YEAR FISCAL IMPACT Developer is responsible for all costs associated with the Annexation No. 7 to CFD 97-2. The City will recover the full cost of staff time expended in district annexation, thus there will be no fiscal impact. ONGOING FISCAL IMPACT The on-going administration will be funded entirely by the district, therefore there is no fiscal impact. ATTACHMENTS Attachment 1 Rate and Method of Apportionment Attachment 2 Annexation Map H:\DSDWgendas and Resos, most up to date version\2013\6-4-2013\Planning Area l2 Annexation\CAS Annexation 7 [0 974.doc Prepared by: Chester Bautista, Associate Civil Engineer, Development Services Department 2-5 Attachment 1 EXHIBIT A COMMilNITY FACILTIES DISTRICT NO.99-2 (PRESERVE MAINTENANCE DISTRICT) IMPROVEMENT AREA ~C" RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES A Special Tax of Community Facilities District No. 97-2 (Preserve Maintenance District) of the City of Chula Vista ("CFD") sha1S be levied on all Assessor's Parcels in Improvement Area C of the CFD and collected each Fiscal Yeaz commencing in Fiscal Yeaz 2002-03 in an amount determined through the application of the rate and method of apportionment of the Special Tax set forth below. All of the real property in the CFD, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre or Acreage" means the land azea of an Assessor's Pazcel as shown on an Assessor's Pazcel Map, or if the land azea is not shown on an Assessor's Pazcel Map, the land azea shown on the applicable Final Subdivision Map, other final map, other parcel map, other condominium plan, or functiona[Iy equivalent map or instrument recorded in the Office of the County Recorder. The squaze footage of an Assessor's Parcel is equal to the Acreage multiplied by 43,560. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the actual or estimated costs incurred by the City, acting for and on behalf of the CFD as the administrator thereof, to determine, levy and collect the Special Taxes, including salaries of City employees and a proportionate amount of the City's general administrative overhead related thereto, and the fees of consultants and legal counsel providing services related to the administration of the CFD; the costs of collecting installments of the Special Taxes; and any other costs required to administer Area C of the CFD as determined by the City. "Assessor's Parcel" means a lot or Pazcel shown in an Assessor's Parcel Map with an assigned assessor's parcel number. "Assessor's Parcel Map" means an official map of the Assessor of the County designating pazcels by assessor's Pazcel number. 2-6 "Building Square Foot or Square Footage" means the square footage as shown on an Assessor's Pazcel's building permit of Residential Property excluding garages or other structures not used as living space. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD" means Community Facilities District No. 97-2 of the City of Chula Vista. "City" means the City of Chula Vista. "City Clerk" means the City Clerk for the City of Chula Vista or his or her designee. "City Manager" means the City Manager for the City of Chula Vista or his or her designee. "Community Purpose Facility Property" or "CPF Property" means all Assessor's Parcels which are classified as community purpose facilities and meet the requirements of City of Chula Vista Ordinance No. 2452. "Council" means the City Councit of the City of Chula Vista, acting as the legislative body of the CFD. "County" means the County of San Diego, California. "Developed Property" means all Taxable Property for which a building perntit was issued prior to the March 1st preceding the Fiscal Yeaz in which the Special Tax is being levied. "Final Map Property" means a single family residential lot created by a Final Subdivision Map, but which is not classified as Developed Property. "Final Subdivision Map" means a subdivision of property creating single family residential buildable lots by recordation of a final subdivisian map or pazcel map pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.), or recordation of a condominium plan pursuant to California Civil Code 1352, that creates individual lots for which building permits may be issued without further subdivision and is recorded prior to Mazch 1 preceding the Fiscal Year in which the Special Tax is being levied. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Improvement Area C" or "Area C" means Improvement Area C of the CFD, as identi£ed on the boundary map for the CFD as amended from time to time. "Land Use Class" means any of the classes listed in Table 1 or Table 2. 2-7 "Maximum Special Taz" means the maximum Special Tax, determined in accordance with Section C below that may be levied in any Fiscal Year on any Assessor's Pazcel of Taxable Property. "Non-Residential Property" means all Assessor's Parcels of Developed Property for which a building permit(s) has been issued for a structure or structures for non-residential use. "Operating Fund" means a fund that shall be maintained within the CFD for each Fiscal Yeaz to pay for Resource Monitoring and/or Preserve Operations and Maintenance activities and Administrative Expenses. "Operating Fund Balance" means the amount of funds in the Operating Fund at the end of the preceding Fiscal Year. "Operating Fund Requirement" means for any Fiscal Year an amount equal to the Resource Monitoring Fund Requirement and the Preserve Operations and Maintenance Fund Requirement for the cun'ent Fiscal fear in which Special Taxes are levied. "Preserve Operations and Maintenance" means those activities described in Attachment A hereto which is incorporated herein by this reference. "Preserve Operations and Maintenance Fund -Requirement" means for any Fiscal Yeaz an amount equal to the budgeted costs for Preserve Operations and Maintenance plus apro-rata share of the budgeted Administrative Expenses of the District for the current Fiscal Yeaz in which Special Taxes aze levied. "Property Owner Association Property" means any property within the boundaries Area C of the CFD that is owned by, or irrevocably dedicated as indicated in an instrument recorded with the County Recorder to, a property owner association, including any master orsub-association. "Public Property" means any property within the boundaries of Area C of the CFD that is, at the time of the CFD formation, expected to be used for any public purpose and is owned by or dedicated to the federal government, the State, the County, the City or any other public agency. "Reserve Fund" means a fund that shall be maintained for the CFD each Fiscal Year to provide necessary cash flow for the first six months of each Fiscal Year, working capital to cover monitoring, maintenance and repair cost overruns and delinquencies in the payment of Special Taxes and a reasonable buffer to prevent large variations in annual Special Tax levies. "Reserve Fuud Balance" means the amount of funds in the Reserve Fund at the end of the preceding Fiscal Year. 5 2-S , , "Reserve Fund Requirement" means an amount equal to up to 100°!0 of the Operating Fund Requirement for any Fiscal Yeaz. "Residential Property" means all Assessor's Pazcels of Developed Property for which a building pemtit{s) has been issued for purposes of constructing one or more residential dwelling unit. "Resource Management Plan" means the Otay Ranch Phase 1 Resource Management Plan also refened to as "The Otay Ranch Resource Management Plan" dated 10Y18/93 and the Otay Ranch Phase 2, Resource Management Plan dated Tune 4, 1996, as both such plans may be amended from time to time. "Resource Monitoring Program" means those described in Attachment B hereto which is incorporated herein by this reference. "Resource Mouitoring Fund Requirement" means for any Fiscal Year an amount for each Improvement Area equal to the Improvement Area's fair share of the budgeted costs of the Resource Monitoring Program plus a pro rata shaze of the budgeted Administrative Expenses of the CFD for the current Fiscal Yeaz in which Special Taxes aze levied. An Improvement Area's "fair share" shall be based on the Improvement Area's percentage of the total acreage within the Otay Ranch General Development Plan Planning Area for which a Resource Monitoring Program funding mechanism has been established. "Special Tax" means the Special Tax levied pursuant to the provisions of sections C and D below in each Fiscal Yeaz on each Assessor's Pazcel of Developed Property and Undeveloped Property in Area C to fund the Special Tax Requirement. "Special Tax Requirement" means that amount required in any Fiscal Year. for Area C to: (i) pay the Resource Monitoring Fund Requirement, and Preserve Operations and Maintenance Fund Requirement, less the Operating Fund Balance, and (ii) pay any amounts required to establish or replenish the Reserve Fund to the Reserve Fund Requirement; (iii) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year. "State" means the State of California. "Taxable Property" means all of the Assessor's Pazcels within the boundaries of Area C of the CFD that aze not exempt from the Special Tax pursuant to law or as defined below. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property. 6 2-9 B. C. ASSIGNMENT TO CATEGORIES OF SPECIAL TAX Each Fiscal Year using the definitions above, all Taxable Property within Area C of the CFD shall be classified as Category I, Category II, Category III or Exempt. Developed Property, Final Map Property or Undeveloped Property, and shall be subject to Special Taxes pursuant to Sections C and D below. Developed Property shall be further assigned to a Land Use Class as specified in Table I. MAXIMUM SPECIAL TAX KATE Category I Category I includes Developed Property within the District ("Category I"). The Maximum Special Tax for Resource Monitoring, and Preserve Operations and Maintenance that maybe levied for Fiscal Year 2002/03 on Developed Property shall be at the rates set forth in Table 1 below. For Residential Pmperiy, the Special Tax shall be levied based upon Building Squaze Footage and for Non-Residential Property shall be levied based on Acreage. TABLE 1 Maximum Special Tax for Category I Community Facilities District No. 97-2 Improvement Area C Description Kesource Operation & Monitoring Maintenance Residential $0.0054 $0.0086 Non-Residential $87.312b $138.6152 Category II Category II includes each Assessor's Parcel of Taxable Property within the District for which a Final Map has been recorded, but which is not classified as a Developed Pazcel ("Category II"). The Maximum Special Tax for Resource Monitoring, and Preserve Operations and Maintenance that may be levied for Fiscal Yeaz 2002/03 on each Assessor's Parcel. in Category II shall be as shown in Table 2 below (said amount to be levied pro rata for any portion of an Acre). 2-10 ~~ TABLE 2 Maximum Special Tax for Category II Community Facilities District No. 97-2 Improvement Area C Resource Monitoring $87.3126 per Acre Operation & Maintenance $138.6152 per Acre Category III Category III includes each Pazcel of Taxable Property within the District not subject to Special Tax under any other category ("Category III"). The Maximum Special Tax which may be levied for Fiscal Year 2002/03 on Taxable Property within Category III shall be as shown in Table 3 below (said amount to be levied pro rata for any portion of an Acre). TABLE 3 Maximum Special Tax for Category III Community Facilities District No. 97-2 Improvement Area C Resource Monitoring Operation & Maintenance $56.3516 per Acre $89.4627 per Acre Exempt Category The Exempt Category includes each property owned, conveyed or irrevocably offered for dedication to a public agency, or land which is in the public right-of--way, unmanned utility easements which make utilization for other than the purpose set forth in the easement impractical, common areas, private streets and parks, and open space lots ("Exempt Category"). Tn some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Class. The Maximum Special Tax that may be levied on an Assessor's Pazcel shall be the sum of the Maximum Special Tax levies that may be levied on all Land Use Classes located on that Assessor's Parcel. The CFD Administrator's shall determine the allocation to each Land Use Class. Annual Escalation of Maximum Special Tax The Maximum Special Tax as shown in the tables above that may be levied on each Assessor's Pazcel in Area C shall be increased each Fiscal Year beginning in Fiscal Year 2003-04 and thereafter by a factor equal to the annual percentage change in the San Diego Metropolitan Area all Urban Consumer Price Index (Al] Items). 2-11 D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Yeaz 2003-04, and for each following Fiscal Yeaz, the Council shall levy the Area C Special Tax at the rates established pursuant to steps 1 through 4 below so that the amount of the Special Tax levied equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows: Step is Determine the revenue which could be generated by Parcels assigned to Category I by multiplying the Building Squaze Footage for Pazcels classified as Residential Pazcels by the Maximum Special Tax per Building Squaze Foot for Resource Monitoring, and Preserve Operations and Maintenance for Parcels and adding to that the maximum revenue which could be generated by multiplying the total acres for Pazcels classified as Non-Residential Pazcels by the Maximum Special Tax per Acre for Resource Monitoring and Preserve Operations and Maintenance. Step 2: If the total revenue as calculated in Tax Liability for Improvement Area C, proportionately so that the Special Tax levy Tax Liability for the Fiscal Yeaz. Step 1 is greater than the estimated Special reduce the Special Tax for each Parcel for the Fiscal Year is equal to the Special Step 3: If the total revenue as calculated in Step 1 is less than the Special Tax Liability for Improvement Area C, a Special Tax shall be levied upon each Parcel within Improvement Area C, classified as Category II. The Special Tax for Pazcels assigned to Category II shall be calculated as the lessor of: (i) The Special Tax Liability for Impmvement Area C as determined by the City, less the total revenue generated for all Pazcels under Step 1 above, divided by the total Acres for all Parcels within Improvement Area C assigned to Category II, OR (ii) The Maximum Special Tax rate for Parcels assigned to Category II. Step 4: If the total revenue as calculated in Step 1 and 3 is less than the Special Tax Liability, for Improvement Area C, a Special Tax shall be levied upon each Parcel within Improvement Area C classified as Category III. The Special Tax for Pazcels assigned the Category III shall be calculated as the lessor of (i) The Special Tax Liability for improvement Area C as determined by the City, less the total revenue generated for all Pazcels under Step 1 and 3 above, divided by the total Acres for atl Pazcels within Improvement Area C assigned to Category III, OR 2-12 i ~ (ii) The Maximum Special Tax rate for Pazcels assigned to Category III and within Improvement Area C. However, in the event it is detennined that the Special Tax Liability for Improvement Area C includes delinquent Special Taxes from Pazcel in Category III from the prior Fiscal Year, the City shall determine the amount of delinquent taxes that azose from such Parcels and identify the owner(s). The amount of delinquent Special Taxes, if any, that arose from the applicable owner(s) shall first be divided by the total Category III Acres owned by such owner(s) and collected from the applicable owner(s) with the remaining portion of the Special Tax Liability not related to delinquent Special Taxes to be collected from all Pazcels in Category III according to the procedure set forth in the preceding paragraph. Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor's Pazcel of Residential Property or Multi-Family Property for which an occupancy permit for private residential use has been issued be increased by more than ten percent annually up to the Maximum Special Tax as a consequence of delinquency or default by the owner of any other Assessor's Pazcel within Area C of the CFD. E. APPEALS Any landowner or resident who pays the Special Tax and believes that the amount of the Special Tax levied on their Assessor's Parcel is in error shall first consult with the CFD Administrator regarding such error. If following such consultation, the CFD Administrator determines that an error has occurred, the CFD Administrator may amend the amount of the Special Tax levied on such Assessor's Parcel. If following such consultation and action, if any by the CFD Administrator, the landowner or resident believes such error still exists, such person may file a written notice with the City Clerk of the City appealing the amount of the Special Tax levied on such Assessor's Pazcel. Upon the receipt of any such notice, the City Clerk shall forwazd a copy of such notice to the City Manager who shall establish as part of the proceedings and administration of the CFD, a special three-member Review/Appeal Committee. The Review/Appeal Committee may establish such procedures, as it deems necessary to undertake the review of any such appeal. The Review/Appeal Committee shall interpret this Rate and Method of Apportionment 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. F. MANNER OF COLLECTION Special Taxes levied pursuant to Section D above shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the CFD Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of Area C of the CFD or as otherwise determined appropriate by the CFD Administrator. 10 2-13 G. TERM OF SPECIAL TAX Taxable Property in Area C of the CFD shall remain subject to the Special Tax in perpetuity. 11 2-14 ~. Attachment 2 ANNEXATION MAP NO. 7 CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT) IMPROVEMENT AREAC CITT OF CXULP VISTA COUNTY OF 54N pIEOO $TPTE OF CALIFORNIA ~~~/~~ N303Y..UY M>0308800 ~ , ,, -- ;I ~_ J I ~ ~=_ r~ 5 6 1 L_ I ~' ~~ ~ I C -~ IF I~~ L~ 1 I I '' Le9entl O Annexali0n Bountlary I Pagel Linea V1NBS 2-15 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING ITS INTENTION TO AUTHORIZE THE ANNEXATION OF TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT) AND IMPROVEMENT AREA "C" THERETO (ANNEXATION NO. 7) WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA, ("City Council"), formed a Community Facilities District and designated certain improvement areas therein 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 (the "Act"), and the City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the "Ordinance") (the Act and the Ordinance may be referred to collectively as the "Community Facilities District Law"). The Community Facilities District has been designated as COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT) (the "District") and the Improvement Areas were designated as IMPROVEMENT AREA "A," IMPROVEMENT AREA "B" and IMPROVEMENT AREA "C" of such District; and WHEREAS, the District was formed for the purpose of financing the monitoring, maintenance, operation and management of public property required to be maintained as open space or habitat preservation or both; and WHEREAS, Improvement Area "C" was established to finance Preserve Operations and Maintenance plus apro-rata share of Administrative Expenses of the District as such terms are defined in the rate and method of apportionment of special taxes (the "Improvement Area "C" Rate and Method") attached as Exhibit A hereto and incorporated herein by this reference; and WHEREAS, certain territory is proposed to be annexed to the District and Improvement Area "C" thereto and such territory shall be known and designated as COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT), IMPROVEMENT AREA "C," ANNEXATION NO. 7 (the "Territory"); and WHEREAS, this legislative body now desires to proceed to adopt its Resolution of Intention to annex the Territory to Improvement Area "C," to describe the territory included within Improvement Area "C" and the Territory proposed to be annexed thereto, to specify the services to be financed from the proceeds of the levy of special taxes within the Territory, to set and specify the special taxes that would be levied within the Territory to finance such services, and to set a time and place for a public hearing relating to the annexation of the Territory to the Improvement Area "C," and J:\Attorney\FINAL RESOS\2013\06 04 13\Chula Vista CFD 97-2 Annex 7 -Resolution of Intention.DOC 5/22/2013 9:13 AM 2-~ 6 Resolution No. Page 2 WHEREAS, a map showing the Territory proposed to be annexed has been submitted, which map has been previously approved and a copy of the map shall be kept on file with the transcript of these proceedings. NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: RECITALS SECTION 1. The above recitals are all true and correct. LEGAL AUTHORITY SECTION 2. These proceedings for annexation are initiated by this City Council pursuant to the authorization of the Community Facilities District Law. INTENTION TO ANNEX: DESCRIPTION OF TERRITORY SECTION 3. This legislative body hereby determines that the public convenience and necessity requires that the Territory be added to the District and Improvement Area "C" thereto and this City Council declares its intention to annex the Territory to the District and Improvement Area "C" thereto. A description of the boundaries and Territory proposed to be annexed is as follows: All that Territory proposed to be annexed to the District and Improvement Area "C" thereto, as such property is shown on a map as previously approved by this legislative body, such map entitled "Annexation Map No. 5 City of Chula Vista Community Facilities District No. 97-2 (Preserve Maintenance District), Improvement Area "C", City Of Chula Vista, County Of San Diego, State Of California" (the "Annexation Map"), a copy of which is on file in the Office of the City Clerk and shall remain open for public inspection. A general description of the territory included in the District is hereinafter described as follows: All that property and territory as originally included within and previously annexed to the District and Improvement Area "C" thereto, as such property is shown on maps of the original District and territory previously annexed as approved by this City Council and designated by the name of the original District and Annexation Nos. 1 through 6. A copy of such maps are on file in the Office of the City Clerk and have also been filed in the Office of the County Recorder. NAME SECTION 4. The proposed annexation shall be known and designated as COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT), IMPROVEMENT AREA "C," ANNEXATION NO. 7. J:\Attorney\FINAL RESOS\2013\06 04 13\Chula Vista CFD 97-2 Annex 7 -Resolution of IntentioaDOC 5/22/2013 9:13 AM 2-~~ Resolution No. Page 3 SERVICES AUTHORIZED TO BE FINANCED BY THE DISTRICT SECTION 5. The services that aze authorized to be financed by the District from the proceeds of special taxes levied within Improvement Area "C" are certain services which are in addition to those provided in or required for the territory within Improvement Area "C" and will not be replacing services already available. A general description of such services to be financed by the District is as follows: The monitoring, maintenance, operation and management of public property in ,which the City has a property interest and which conforms to the requirements of the Ordinance or private property within the Otay Ranch Preserve which is required by the Preserve Owner/Manager to be maintained as open space or for habitat maintenance or both. Such property may be located outside the boundaries of the District and outside the jurisdictional boundaries of the City of Chula Vista. Such services shall not include the maintenance, operation and/or management of any property owned, maintained, operated and/or managed by the federal and/or state government as open space, habitat maintenance and/or for any other purpose. The District shall finance all direct, administrative and incidental annual costs and expenses necessary to provide the such monitoring, maintenance, operation and management of such public property. The same types of services which are authorized to be financed by the District from the proceeds of special taxes levied within Improvement Area "C" are the types of services to be provided in the Territory. If and to the extent possible such services shall be provided in common within the District and the Territory. SPECIAL TAXES SECTION 6. It is the further intention of this City Council body that, except where funds are otherwise available, a special tax sufficient to pay for such services and related incidental expenses authorized by the Community Facilities District Law, secured by recordation of a continuing lien against all non-exempt real property in the Territory, will be levied annually within the boundazies of such Territory. For further particulars as to the rate and method of apportionment of the proposed special tax, reference is made to the attached and incorporated Exhibit "A" (the "Improvement Area `C' Rate and Method"), which sets forth in sufficient detail the method of apportionment to allow each landowner or resident within the proposed Territory to clearly estimate the maximum amount that such person will have to pay. The special tax proposed to be levied within the Territory shall be equal to the special tax levied to pay for the same services in Improvement Area "C," except that a higher or lower special tax may be levied within the Territory to the extent that the actual cost of providing the services in the Territory is higher or lower than the cost of providing those services in Improvement Area "C." Notwithstanding the foregoing, the special tax may not be levied at a rate which is higher that the maximum special tax authorized to be levied pursuant to the Improvement Area "C" Rate and Method. 7:\P.ttorney\FINAL RESOS\2013\O6 04 13\Chula Vista CFD 97-2 Annex 7 -Resolution of Intention.DOC 5/22/2013 9:13 AM 2-18 Resolution No. Page 4 The special taxes herein authorized, 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 valorem taxes. Any special taxes that may not be collected on the County tax roll shall be collected through a direct billing procedure by the Treasurer. The maximum special tax rate in Improvement Area "C" shall not be increased as a result of the annexation of the Territory to Improvement Area "C." PUBLIC HEARING SECTION 7. NOTICE IS GIVEN THAT ON JULY 9, 2013, AT THE HOUR OF 2:00 PM CLOCK P.M., IN THE REGULAR MEETING PLACE OF THE LEGISLATIVE BODY, BEING THE COUNCIL CHAMBERS, 276 FOURTH AVENUE, CHULA VISTA, CALIFORNIA, A PUBLIC HEARING WILL BE HELD WHERE THIS LEGISLATIVE BODY WILL CONSIDER THE AUTHORIZATION FOR THE ANNEXATION OF THE TERRITORY TO THE DISTRICT AND IMPROVEMENT AREA "C" THERETO, THE PROPOSED RATE AND METHOD OF APPORTIONMENT OF THE SPECIAL TAX TO BE LEVIED WITHIN THE TERRITORY AND ALL OTHER MATTERS AS SET FORTH IN THIS RESOLUTION OF INTENTION. AT SUCH PUBLIC HEARING, THE TESTIMONY OF ALL INTERESTED PERSONS FOR OR AGAINST THE ANNEXATION OF THE TERRITORY OR THE LEVYING OF SPECIAL TAXES WITHIN THE TERRITORY WILL BE HEARD. AT SUCH PUBLIC HEARING, PROTESTS AGAINST THE PROPOSED ANNEXATION OF THE TERRITORY, THE LEVY OF SPECIAL TAXES WITHIN THE TERRITORY OR ANY OTHER PROPOSALS CONTAINED IN THIS RESOLUTION MAY BE MADE ORALLY BY ANY INTERESTED PERSON. ANY PROTESTS PERTAINING TO THE REGULARITY OR SUFFICIENCY OF THE PROCEEDINGS SHALL BE IN WRITING AND SHALL CLEARLY SET FORTH THE IRREGULARITIES OR DEFECTS TO WHICH OBJECTION IS MADE. ALL WRITTEN PROTESTS SHALL BE FILED WITH THE CITY CLERK PRIOR TO THE TIME FIXED FOR THE PUBLIC HEARING. WRITTEN PROTESTS MAY BE WITHDRAWN AT ANY TIME BEFORE THE CONCLUSION OF THE PUBLIC HEARING. MAJORITY PROTEST SECTION 8. If (a) 50% or more of the registered voters, or six (6) registered voters, whichever is more, residing within Improvement Area "C" of the District, (b) 50% or more of the registered voters, or six (6) registered voters, whichever is more, residing within the Territory, (c) owners of one-half or more of the azea of land in the territory included in Improvement Area "C" of the District, or (d) owners of one-half or more of the area of land included in the Territory, file written protests against the proposed annexation of the Territory to the District in the future and such protests are not withdrawn so as to reduce the protests to less than a majority, no further proceedings shall be undertaken for a period of one year from the date of the decision by the City Council on the issue discussed at the public hearing. J:\Attorney\FINAL RESOS\2013\06 04 13\Chula Vista CFD 97-2 Annex 7 -Resolution of IntentioaDOC 5/22/2013 9:13 AM 2-19 __ _ _. __. Resolution No. Page 5 ELECTION SECTION 9. Upon the conclusion of the public hearing, if the legislative body determines to proceed with the annexation of the Territory, a proposition shall be submitted to the qualified electors of the Territory. The vote shall be by registered voters within the Territory; provided, however, if there are less than 12 registered voters, the vote shall be by landowners, with each landowner having one vote per acre or portion thereof within the Territory. NOTICE SECTION 10. Notice of the time and place of the public hearing shall be given by the City Clerk by publication in the legally designated newspaper of general circulation, said publication pursuant to Section 6061 of the Government Code, with said publication to be completed at least seven (7) days prior to the date set for the public hearing. Presented by Richazd A. Hopkins Director of Public Works Approved as to,form by J:\Attorney\FINAL RESOS\2013\06 04 13\Chula Vista CFD 97-2 Annex 7 -Resolution of Intention.DOC 5/22/2013 9:13 AM 2-20 EXHIBIT A CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT) IMPROVEMENT AREA C A Special Tax of Community Facilities District No. 97-2 (Preserve Maintenance District) of the City of Chula Vista ("CFD") shall be levied on all Assessor's Parcels in Improvement Area C of the CFD and collected each Fiscal Year commencing with Fiscal Year 2002-03 in an amount determined through the application of the rate and method of apportionment of the Special Tax set forth below. All of the real property in the CFD, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land azea shown on the applicable Final Subdivision Map, other final map, other parcel map, other condominium plan, or functionally equivalent map or instrument recorded in the Office of the County Recorder. The square footage of an Assessor's Parcel is equal to the Acreage multiplied by 43,560. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the actual or estimated costs incun•ed by the City, acting for and on behalf of the CFD as the administrator thereof, to determine, levy and collect the Special Taxes, including salaries of City employees and a proportionate amount of the City's general administrative overhead related thereto, and the fees of consultants and legal counsel providing services related to the administration of the CFD; the costs of collecting installments of the Special Taxes; and any other costs required to administer Area C of the CFD as determined by the City. "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned assessor's parcel number. "Assessor's Parcel Map" means an official map of the Assessor. of the County designating parcels by assessor's parcel number. "Building Square Foot or Square Footage" means the square footage as shown on an Assessor's Pazcel's building permit of Residential Property excluding garages or other structures not used as living space. 221 "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD" means Community Facilities District No. 97-2 of the City of Chula Vista. "City" means the City of Chula Vista. "City Clerk" means the City Clerk for the City of Chula Vista or his or her designee. "City Manager" means the City Manager for the City of Chula Vista or his or her designee. "Community Purpose Facility Property" or "CPF Property" means all Assessor's Pazcels which aze classified as community purpose facilities and meet the requirements of City of Chula Vista Ordinance No. 2883. "Council" means the City Council of the City of Chula Vista, acting as the legislative body of the CFD. "County" means the County of San Diego, California "Developed Property" means all Taxable Property for which a building permit was issued prior to the Mazch 1st preceding the Fiscal Year in which the Special Tax is being levied. "Final Map Property" means any residential lot or non-residential lot created by a Final Subdivision Map, but which is not classified as Developed Property. "Final Subdivision Map" means a subdivision of property creating residential or non- residential buildable lots by recordation of a final subdivision map or pazcel map pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.), or recordation of a condominium plan pursuant to California Civil Code 1352, that creates individual lots for which building permits may be issued without further subdivision and is recorded prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Improvement Area C" or "Area C" means Improvement Area C of the CFD, as identified on the boundary map for the CFD as amended from time to time. "Land Use Class" means any of the classes listed in Table 1, Table 2, or Table 3. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C below that may be levied in any Fiscal Yeaz on any Assessor's Parcel of Taxable Property. "Non-Residential Property" means all Assessor's Pazcels of Developed Property for which a building permit(s) has been issued for a structure or structures for non-residential use. 2-~2 2 "Operating Fund" means a fund that shall be maintained within the CFD for each Fiscal Year to pay for Resource Monitoring and/or Preserve Operations and Maintenance activities and Administrative Expenses. "Operating Fund Balance" means the amount of funds in the Operating Fund at the end of the preceding Fiscal Year. "Operating Fund Requirement" means for any Fiscal Year an amount equal to the Resource Monitoring Fund Requirement and the Preserve Operations and Maintenance Fund Requirement for the current Fiscal Year in which Special Taxes are levied. "Preserve Operations and Maintenance" means those activities described in Attachment A hereto which is incorporated herein by this reference. "Preserve Operations and Maintenance Fund Requirement" means for any Fiscal Year an amount equal to the budgeted costs for Preserve Operations and Maintenance plus apro-rata share of the budgeted Administrative Expenses of the District for the current Fiscal Year in which Special Taxes are levied. "Property Owner Association Property" means any property within the boundazies of Area C of the CFD that is owned by, or irrevocably dedicated as indicated in an instrument recorded with the County Recorder to, a property owner association, including any master or sub- association. "Public Property" means any property within the boundaries of Area C of the CFD that is, at the time of the CFD formation, expected to be used for any public purpose and is owned by or dedicated to the federal government, the State, the County, the City or any other public agency. "Reserve Fund" means a fund that shall be maintained for the CFD each Fiscal Year to provide necessary cash flow for the first six months of each Fiscal Year, working capital to cover monitoring, maintenance and repair cost overruns and delinquencies in the payment of Special Taxes and a reasonable buffer to prevent large variations in annual Special Tax levies. "Reserve Fund Balance" means the amount of funds in the Reserve Fund at the end of the preceding Fiscal Year. "Reserve Fund Requirement" means an amount equal to up to 100% of the Operating Fund Requirement for any Fiscal Year. "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit(s) has been issued for purposes of constructing one or more residential dwelling unit. "Resource Management Plan" means the Otay Ranch Phase 1 Resource Management Plan also referred to as "The Otay Ranch Resource Management Plan" dated October 28, 1993, and the Otay Ranch Phase 2, Resource Management Plan dated June 4, 1996, as both such plans may be amended from time to time. 223 "Resource Monitoring Program" means those described in Attachment B hereto which is incorporated herein by this reference. "Resource Monitoring Fund Requirement" means for any Fiscal Year an amount for each Improvement Area equal to the Improvement Area's fair shaze of the budgeted costs of the Resource Monitoring Program plus a pro rata shaze of the budgeted Administrative Expenses of the CFD for the current Fiscal Yeaz in which Special Taxes are levied. Improvement Area C's "fair share" shall be based on Improvement Area C's percentage of the total acreage within the Otay Ranch General Development Plan Planning Area for which a Resource Monitoring Program funding mechanism has been established. "Special Tax" means the Special Tax levied pursuant to the provisions of sections C and D below in each Fiscal Yeaz on each Assessor's Parcel of Developed Property and Undeveloped Property in Area C to fund the Special Tax Requirement. "Special Tax Requirement" means that amount required in any Fiscal Year for Area C to: (i) pay the Resource Monitoring Fund Requirement, and Preserve Operations and Maintenance Fund Requirement, less the Operating Fund Balance, and (ii) pay any amounts required to establish or replenish the Reserve Fund to the Reserve Fund Requirement; (iii) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Yeaz. "State" means the State of California "Taxable Property" means all of the Assessor's Pazcels within the boundaries of Area C of the CFD that are not exempt from the Special Tax pursuant to law or as defined below. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property. 2-~4 B. ASSIGNMENT TO CATEGORIES OF SPECIAL TAX Each Fiscal Year using the definitions above, all Taxable Property within Area C, Annexation No. 7 (Planning Area 12), of the CFD shall be classified as Category I, Category II, Category III or Exempt. Developed Property, Final Map Property or Undeveloped Property, and shall be subject to Special Taxes pursuant to Sections C and D below. Developed Property shall be further assigned to a Land Use Class as specified in Table 1. C. MAXIMUM SPECIAL TAX RATES Category I Category I includes Developed Property within the District ("Category P'). The Maximum Special Tax for Resource Monitoring, and Preserve Operations and Maintenance for Fiscal Year 2002-2003 on Developed Property are the rates set forth in Table 1 below. For Residential Property, the Special Tax shall be levied based upon Building Square Footage and for Non-Residential Property shall be levied based on Acreage. TABLE 1 Maximum Special Tax for Category I Community Facilities District No. 97-2 Improvement Area C (Fiscal Year 2002-2003) Description Resource Operation & Monitoring Maintenance Residential $0.0054 sq ft $0.0086/sq ft Non- $87.3126/acre $138.6152/acre Residential Category II Category II includes each Assessor's Parcel of Taxable Property within the District for which a Final Map has been recorded, but which is not classified as a Developed Parcel ("Category II"). The Maximum Special Tax for Resource Monitoring, and Preserve Operations and Maintenance approved for Fiscal Year 2002-2003 on each Assessor's Parcel in Category II is the rate set forth in Table 2 below (said amount to be levied pro rata for any portion of an Acre). 2 g2 5 TABLE 2 Maximum Special Tax for Category II Community Facilities District No. 97-2 Improvement Area C (Fiscal Year 2002-2003) Resource Operation & Monitoring Maintenance $87.3126/acre $138.5152/acre Category III Category III includes each Parcel of Taxable Property within the District not subject to Special Tax under any other category ("Category III"). The Maximum Special Tax approved for Fiscal Year 2002-2003 on Taxable Property within Category III is the rate set forth in Table 3 below (said amount to be levied pro rata for any portion of an Acre). TABLE 3 Maximum Special Tax for Category III Community Facilities District No. 97-2 Improvement Area C (Fiscal Year 2002-2003) Resource Monitoring Operation & Maintenance $65.3004/acre $103.6696/acre Exempt Category The Exempt Category includes each property owned, conveyed or irrevocably offered for dedication to a public agency, or land which is in the public right-of--way, unmanned utility easements which make utilization for other than the purpose set forth in the easement impractical, common areas, private streets and parks, and open space lots ("Exempt Category"). Annual Escalation Of Maximum Special Tax The Maximum Special Tax as shown in the tables above that may be levied on each Assessor's Parcel in Area C shall be increased each Fiscal Year beginning in Fiscal Year 2-& 6 2003-2004 and thereafter by a factor equal to the annual percentage change in the San Diego Metropolitan Area all Urban Consumer Price Index (All Items). D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2003-2004, and for each following Fiscal Year, the Council shall levy the Area C Special Tax at the rates established pursuant to steps 1 through 4 below so that the amount of the Special Tax levied equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows: Step 1: Determine the revenue which could be generated by Parcels assigned to Category I by multiplying the Building Square Footage for Parcels classified as Residential Parcels by the Maximum Special Tax per Building Square Foot for Resource Monitoring, and Preserve Operations and Maintenance for Parcels and adding to that the maximum revenue which could be generated by multiplying the total acres for Parcels classified as Non-Residential Parcels by the Maximum Special Tax per Acre for Resource Monitoring and Preserve Operations and Maintenance. Step 2: If the total revenue as calculated in Step 1 is greater than the estimated Special Tax Liability for Improvement Area C, reduce the Special Tax for each Parcel proportionately so that the Special Tax levy for the Fiscal Year is equal to the Special Tax Liability for the Fiscal Year. Step 3: If the total revenue as calculated in Step I is less than the Special Tax Liability for Improvement Area C, a Special Tax shall be levied upon each Parcel within Improvement Area C, classified as Category IL The Special Tax for Parcels assigned to Category II shall be calculated as the lesser of: (i) The Special Tax Liability for Improvement Area C as determined by the City, less the total revenue generated for all Parcels under Step 1 above, divided by the total Acres for all Parcels within Improvement Area C assigned to Category II, OR (ii) The Maximum Special Tax rate for Parcels assigned to Category II. Step 4: If the total revenue as calculated in Step 1 and 3 is less than the Special Tax Liability, for Improvement Area C, a Special Tax shall be levied upon each Parcel within Improvement Area C classified as Category III. The Special Tax for Parcels assigned the Category III shall be calculated as the lesser of: (i) The Special Tax Liability for Improvement Area C as determined by the City, less the total revenue generated for all Parcels under Step I i=n ~ and 3 above, divided by the total Acres for all Parcels within Improvement Area C assigned to Category III, OR (ii) The Maximum Special Tax rate for Parcels assigned to Category III and within Improvement Area C. However, in the event it is determined that the Special Tax Liability for Improvement Area C includes delinquent Special Taxes from Parcel in Category III from the prior Fiscal Year, the City shall determine the amount of delinquent taxes that arose from such Parcels and identify the owner(s). The amount of delinquent Special Taxes, if any, that arose from the applicable owner(s) shall first be divided by the total Category III Acres owned by such owner(s) and collected from the applicable owner(s) with the remaining portion of the Special Tax Liability not related to delinquent Special Taxes to be collected from all Parcels in Category III according to the procedure set forth in the preceding paragraph. Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor's Parcel of Residential Property or Multi-Family Property for which an occupancy permit for private residential use has been issued be increased by more than ten percent annually up to the Maximum Special Tax as a consequence of delinquency or default by the owner of any other Assessor's Parcel within Area C of the CFD. E. APPEALS Any landowner or resident who pays the Special Tax and believes that the amount of the Special Tax levied on their Assessor's Parcel is in error shall first consult with the CFD Administrator regazding such error. If following such consultation, the CFD Administrator determines that an error has occurred, the CFD Administrator may amend the amount of the Special Tax levied on such Assessor's Parcel. If following such consultation and action, if any, by the CFD Administrator, the landowner or resident believes such error still exists, such person may file a written notice with the City Clerk of the City appealing the amount of the Special Tax levied on such Assessor's Parcel. Upon the receipt of any such notice, the City Clerk shall forward a copy of such notice to the City Manager who shall establish as part of the proceedings and administration of the CFD, a special three-member Review/Appeal Committee. The Review/Appeal Committee may establish such procedures, as it deems necessary to undertake the review of any such appeal. The Review/Appeal Committee shall interpret this Rate and Method of Apportionment 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. F. MANNER OF COLLECTION Special Taxes levied pursuant to Section D above shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the CFD Administrator may directly bill the Special Tax, may collect Special Taxes at a different 228 time or in a different manner if necessary to meet the financial obligations of Area C of the CFD or as otherwise determined appropriate by the CFD Administrator. 2~'L 9 G. TERM OF SPECIAL TAX Taxable Property in Improvement Area C of the CFD shall remain subject to the Special Tax in perpetuity. 2}P,0 Attachment A Description of Preserve Operations and Maintenance Preserve Operations and Maintenance includes the maintenance, operation and management of the public or private property within boundaries of the Otay Ranch Preserve, as such boundaries may be modified from time to time, required by the Resource Management Plan to be maintained as open space or habitat preservation land or both. Such maintenance, operations and management shall include, but not be limited to, the following: (i) Preserve Maintenance. Development, implementation and ongoing provision of programs to maintain, operate and manage preserve habitat values through: cultivation, irrigation, trimming, spraying, fertilizing, and/or treatment of disease or injury; removal of trimmings, rubbish, debris and other solid waste; maintenance of trails; removal and control of exotic plant species (weeds); and control of cowbirds through trapping. (ii) Security. Development, implementation and ongoing provision of security programs to: enforce "no trespassing" rules;. curtail activities that degrade resources, such as grazing, shooting, and illegal dumping; remove trash, litter, and other debris; control access; prohibit off-road traffic; and maintain fences and trails. (iii) Preserve improvements: Acquire equipment and/or install improvements necessary to maintain, operate and manage the open space and habitat preservation land described above. The above description of the Preserve Operations and Maintenance is general in nature. The actual maintenance, operations and management of the open space and habitat preservation land within the Otay Ranch Preserve may be modified from time to time as necessary in order to effectively provide such services in compliance with the requirements of the Resource Management Plan. 2~~1 Attachment B Description of Resource Monitoring Implement the annual biota monitoring and reporting program consistent with the Resource Management Plan to identify changes in the quality and quantity of preserve resources including wildlife species, sensitive plants and sensitive habitat types. The above description of the Resource Monitoring is general in nature. The actual monitoring and reporting program may be modified from time to time as necessazy in order to effectively provide such services consistent with the requirements of the Resource Management Plan. 60297.0003 I \ 7954969.1 2}~42 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING AN ANNEXATION MAP SHOWING TERRITORY PROPOSED TO BE ANNEXED TO IMPROVEMENT AREA "C" OF COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT) (ANNEXATION N0. 7) WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA, ("City Council"), formed a Community Facilities District and certain improvement areas therein 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 (the "Act"), and the City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the "Ordinance") (the Act and the Ordinance may be referred to collectively as the "Community Facilities District Law"). The Community Facilities District has been designated as COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT) (the "District") and the Improvement Areas were designated as IMPROVEMENT AREA "A," IMPROVEMENT AREA "B" and IMPROVEMENT AREA "C" of such District ;and WHEREAS, the City Council desires to initiate proceedings to annex certain property to Improvement Area "C" thereof; and WHEREAS, there has been submitted a map entitled "Annexation Map No. 5 City of Chula Vista Community Facilities District No. 97-2 (Preserve Maintenance District), Improvement Area "C", City Of Chula Vista, County Of San Diego, State Of California" (the "Annexation Map") showing the territory proposed to be annexed to the District and Improvement Area "C" thereof (the "Territory"). NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista as follows: SECTION 1. The above recitals are all true and correct. SECTION 2. The Annexation Map showing the Territory proposed to be annexed to the District and Improvement Area "C" thereof and to be subject to the levy of a special tax is hereby approved and adopted. SECTION 3. A certificate shall be endorsed on the original and on at least one (1) copy of Annexation Map, evidencing the date and adoption of this Resolution, and within fifteen (15) days after the adoption of the Resolution fixing the time and place of the hearing on the intention to annex or extent of the annexation to the District and Improvement Area "C" thereof, a copy of such map shall be filed with the correct and proper endorsements thereon with J:\P.ttorney\FINAL RESOS\2013\06 04 13\Chula Vista CFD 97-2 Annex 7 -Resolution Approving Annexation Map.DOCS/22/20]3 9:07 AM 2-33 Resolution No. 2013-_ Page No. 2 the County Recorder, all in the manner and form provided For in Section 3111 of the Streets and Highways Code of the State of California. Presented by Approved as to form by _ .// Richard A. Hopkins Director of Public Works R. G36g Attorney J:\Attorney\FINAL RESOS\2013\06 04 13\Chula Vista CFD 97-2 Annex 7 -Resolution Approving Annexation Map.DOC 5/22/2013 9:07 AM 2-34