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HomeMy WebLinkAboutReso 2013-164 RESOLUTION?v0. 2013-16� RESOLUTION OF THE CITY COUNCIL OF THE CIT1' OF CHULA VISTA DECLARING ITS II�'TEI�'TION TO AUTHORIZE THE AI�'2�'EXATION OF TERRITORI' TO COD4MUT'ITl' FACILITIES DISTRICT NO. 97-2 (PRESERVE MAII�'TENANCE DISTRICT) AND IAIPROVE1�4E1�'T AREA "C" THERETO (A?�T'EXATION NO. 8) V�'I-IEREAS; the Cin� Council of the Cit�� of Chula Vista. Califomia ("Cit�� Council"), formed a Communin� Facilities District and designated certain impro��ement areas therein pursuant to the terms and pro��isions of the `Mello-Roos Communit�� Facilities Act of 1982;" beine Chapter 2.�; Part 1, Division 2; Title � of the Go��emment Code of the State of Califomia (the "AcP`). and the Cit�� of Chula Vista Communit}� Facilities District Ordinance enacted pursuant to the poH�ers reserved b�� the City of Chula Vista under Sections 3, � and 7 of Artide X] of the Constitution of the State of California (the "Ordinance") (the Act and the Ordinance ma�� be referred to collecti��ely as the "Communin� Facilities District LaH�'). The Commapin� Facilities District has been designated as COMD4iINITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT) (the "District ') and the Improvement Areas �ti�ere desi¢nated as [MPROVEMEI�'T AREA `�A." IMPROVEn4ENT AREA "B" and IMPROVEMEI�'T AREA "C" of such District: and �'IIEREAS, the District ���as formed for the purpose of financins the monitoring, maintenance, operation and manaeement of public property required to be maintained as open space or habitat preservation or both; and \0'HEREAS, Improvement Area "C" ���as established to finance Preseme Operations and Maintenance plus a pro-rata shaze of Administrati��e Expenses of the District as such terms aze defined in the rate and method of apportionment of special ta�es (the "Impro��ement Area `C' Rate and Method') attached as Eshibit A hereto and incorporated herein b}� this reference; and N'HEREAS; certain territon- is proposed to be annexed to the District and Improvement Area "C" thereto and such temtorv shall be l:no�vn and desienated as COMM[JIVITY FACILITIES DISTRICT NO. 97-2 (PRESERVE A�IAti�'TENANCE DISTWCT), IMPROVEMEI�'T AREA "C," AI�TI�TEXATIOI�' I�'O. 8 (the "Territory '); and �'�'HEREAS, this leoislative bod}� no��� desires to proceed to adopt its Resolution of Imention to annez the Territon� to improvement Area "C." to describe the temton- included ���ithin Impro��ement Area "C" and the Territory proposed to be annexed thereto, to specifi� the sen�ices to be financed from lhe proceeds of the le�y of special taxes ���ithin the Temtory, to set and specifi� the special taxes that �vould be le��ied ���thin the Temtory to finance such services, and to set a time and place for a public hearing relatine to the annesation of the Territory to the Improvement Area "C"; and Resolution No. 20li-164 Page 2 of 16 WHEREAS, a map showing the Temtory proposed to be annexed has been submitted, ��hich 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 1S HEREBY RESOLVED AS FOLLOWS: RECITALS SECTION 1. The abo��e recitals are all true and correct. LEGAL AUTHORITY SECT[ON 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 detennines that the public convenience and necessit}� requires that the Territory be added to the District and Improvement Area "C" thereto and this Cin� 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 sho�vn on a map as previousl}� approved by this legislative body, such map entitled "Annexation Map No. 8 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 inc]uded within or previously annexed to the District and Improvement Area "C" thereto; as such propeny is sho��n on maps of the original District and territory previously anneaed as approved by this City Council and desianated by tl�e name of the original District and Annexation Nos. 1 through 7. A copy of such maps are on file in tlie Office of the City Clerk and have also been filed in tbe Office of the County Recorder. Resolution I�'o. 2013-]64 Paee 3 of 16 I�'AI�4E SECTION 4. 1'he proposed annexation shall be l:nowm and designated as COMMU`I�'ITY FACILITIES DISTRICT NO. 97-2 (PRESERVE NIAINTENAI�'CE DISTR]CT), IMPROVEh4ET'T AREA "C," AI�TE�ATIOn' NO. 8. SERVICES AUTHORIZED TO BE FIi�'AI�'CED B1' THE DISTRICT SECTION 5. The senices that are authorized to be finar�ced bv the District from the proceeds of special taxes le��ied �vithin Improvement Area "C" are certain sen�ices �a�hich are in addition to those provided in or required for the temton- H�thin [mprovement Area "C" and «�ill not be replacing sen ices alread�� available. A oeneral description of such sen�ices to be financed bv the District is as follo���s: The monitorin�; maintenance; operation and management of public property in ���hich the Cit�� has a propert�� interest and ��hich conforms to the requirements of the Ordinance or private propert�� within the Ota�� Ranch Preser��e «hich is required by the Presen�e Owner/A4anager to be maintained as open space or for habitat maintenance or both. Such propem� ma�� be located outside the boundaries of the District and outside the jurisdictional boundaries of the Cirv of Chula \'ista. Such sen�ices shall not include the maintenance, operation and/or management of any property o��med, maintained, operated and/or managed by the federal and/or state eovemment as open space, habitat maintenance and/or for am� other purpose. The District shall finance all direct, administrative and incidental annual costs and ezpenses necessam to pro��ide the such monitorine, maintenance, operation and management of such public propert}�. The same t��pes of services which aze authorized to be financed b�� the District from the proceeds of special taxes le��ied ���ithin Impro��ement Area �`C" are the t��pes of sen�ices to be pro��ided in the Temtory. If and to the extent possible such ser��ices shall be pro��ided in common ��ithin the District and the Territorv. SPECIAL TAXES SECTION 6. [t is the further intention of this Cin� Council that; except �vhere funds are othenaise a��ailable; a special tas sufficient to pay for such services and related incidental expenses authorized b�� the Communit} Facilities District La«�, secured b�� recordation of a continuing lien against all non-e�empt real property in the Temtory, ���ill be levied annualh° ���ithin the boundaries of such Territor��. For further particulars as to the rate and method of apponionment of the proposed special tax, reference is made to the attached and incorporated Eshibit A (the "Impro��ement Area `C' Rate and Method"), ���hich sets forth in sufficient detail the method of apportionment to allo��• each lando��mer or resident �+�ithin the proposed Temtor} to cleazlv estimate the ma�imum amount that such person ��ill ha��e to pay. Resolution No. 2013-164 Pa�e 4 of 16 The special tax proposed to be levied ��ithin the Territory shall be equal to the special tax levied to pay for the same services in Improvement Area "C," eacept that a higher or lower special tax may be levied within the Territory to the extent that the actual cost of providing the sen�ices in the Temtorti� is hieher or ]o�ver than the cost of providing those services in Impro��ement Area "C." Notwithstanding the foregoinQ, 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. The special taxes herein authorized, to the eatent 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 ease 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 bv 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 lmprovement Area "C." PUBLIC HEARING SECTION 7. NOTICE IS GNEN THAT ON SEPTEMBER 17, 20li, AT THG HOUR OF 2:00 PM CLOCK P.M., IN THE REGULAR MEETING PLACE OF TI-IE LEGISLATNE BODY. BE[NG THE COUNCIL CHAMBERS. 276 FOURTH AVEI��UE. CHULA VISTA. CALIFORNIA. A PUBLIC HEARING WILL BE HELD WHERE THIS LEGISLATNE BODY WILL CONSIDER THE AUTHORIZATION FOR THE ANNBXATION 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 TAX�S VdITHIN THE TERRITORY WILL BE HEARD. AT SUCH PUBLIC HEARING. PROTGSTS 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. AI�'Y PROTESTS PER"I�AINING TO THE REGULAWTY OR SUFFICIENCY OF THE PROCEEDINGS SHALL BE IN WRITING AND SHALL CLEARLY SET FORTH TI-IE IRREGULARITIES OR DEFECTS TO WHICH OBJECTION IS MADE. ALL WRITTEN PROTESTS SHALL BE FILED WI7'H 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. Resolution No. 2013-16� Pase � of 16 i14AJORITY PROTEST SECTION 8. If (a) �0% or more of the reeistered voters. or six (6) registered ��oters, �vhichever is more: residing ���ithin Impro��ement Area "C" of the District, (b) �0% or more of the registered ��oters. or si� (6) registered ��oters, whiche��er is more. residine ��ithin the Temtory, (c) ow�ers of one-half or more of the area of land in the temtorv induded in Impro��ement Area "C" of the District; or (d) oNners of one-half or more of the area of land included in the Temtory, file ��-ritten protests against the proposed annezation of the Territon� to the District in the future and such protests are not ��ithdraNm so as to reduce the protests to less than a majorit��, no further proceedings shall be undertaken for a period of one �=eaz from the date of the decision b��the City Council on the issue discussed at the public hearing. ELECTION SECTION 9. Upon the conclusion of the public hearine, if the legislative bod�� determines to proceed ���ith the anne�ation of the Territory, a proposition to authorize the lev}� of the special tases w-ithin the Temton� shall be submitted to the qualified electors of the Territory. The vote shall be b�� resistered voters tiithin the Temton; pro��ided, ho���ever, if there aze less than 12 reeistered voters. the ��ote shall be by lando��mers, ��ith each IandoHner having one vote per acre or portion thereof within the Territorv. NOTICE SECTION 10. Notice of the time and place of the public hearine shall be gi��en b�� the City Clerk b�� publication in the legally designated ne��-spaper of general circulation. said publication pursuant to Section 6061 of the Go��emment Code, ���ith said publication to be completed at least se��en (7) davs prior to the date set for the public hearing. Prepared bv Approved as to form by � Kelh . Brouehton. FASLA 1en R. oosins Director of Development Semices C� . ome}• Resolution I�o. 20li-164 Page 6 of 16 PASSED. APPROVED, and ADOPTED by the City Council of the Cit}� of Chula Vista; Califomia, this 13th da}� of August 2013 by the following vote: AYES: Councilmembers: Bensoussan, Ramirez, Salas and Cox NAYS: Councilmembers: None ABSENT: Councilmembers: Aguilar � Cheryl Cox, n yor ATTEST: ��� ���� Donna R. Norris, CMC, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA V1STA ) I, Donna R. Norris, Ciri� Clerk of Chula Vista. California, do hereby certify that the foregoin� Resolution No. 20li-164 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on tl�e l3th day of August 2013. Esecuted this 13th day of August 2013. /���.���, �b/V 6�lS.�o Donna R. Norris; CMC, City Clerk Resolution r'o. 2013-164 Paee 7 of 16 EXHIBIT A CITY OF CHULA VISTA C01�17UNIT1' FAC[LITIES DISTRICT NO. 97-2 (PRESERVE MAINTEN?.NCE DISTRICT) 111PROVEA4ENT AREA C A Special Tax of Communih� Facilities District No. 97-2 (Preserve Alaintenance District) of the Cih� of Chula Vista ("CFD") shall be le�•ied on all Assessor's Parcels in Improvemeot Area C of the CFD and collected each Fiscal I'ear commencing �rith Fiscal Year 2002/03 in an amount determined through the application of the rate and method of apportiooment of the Special Taz set forth below•. All of the real properh� in the CFD, unless exempted b�� law or by the provisions hereof, shall be tazed for the purposes, to the extent and in the manner herein provided. A. DEF[NITIONS The terms hereinafrer set forth ha��e the follo�+�ina meanines: "Acre or Acreage" means the land area of an Assessors Parcel as sho��n on an Assessor's Pazcel 1�4ap. or if the land azea is not showm on an Assessor's Parcel Map. the land area sho�i�n on the applicable Final Subdi��ision Map. other final map, other parcel map, other condominium plan; or functionallv equivalent map or instrument recorded in the Office of the Count�� Recorder. The square footage of an Assessor's Pazcel is equal to the Acreaee multiplied by 43.�60. "AcN' means the Mello-Roos Communin� Facilities Act of 1982, as amended, being Chapter 2S, Part 1. Division 2 of Title � of the Go��ernment Code of the State of California. "Administrati��e Expeuses" means the actual or estimated costs incurred by the Cit��; actine for and on behalf of the CFD as the administrator thereof. to determine, le��}� and collect the Special Ta�es; including salaries of City emplo��ees and a proportionate amount of the Citys general administrati��e overhead related thereto. and the fees of consultants and legal counsel pro�idine services related to the administration of the CFD: the costs of collectina installments of the Special Taxes; and am� other costs required [o administer Area C of the CFD as determined b�� the Citv. "Assessor's Parcel" means a lot or parcel sho��T in an Assessor's Parcel A4ap with an assigned assessor's parcel number. "Assessor's Parcel 14ap" means an official map of the Assessor of the County designating parcels b�� assessor's parcel number. Resolution No. 2013-164 Page 8 of 16 `Building Square Foot or Square Footage" means the square footage as shown on an Assessor's Parce]'s building permit of Residential Property eacluding garages or other strucmres not used as living space. "CFD Administrator" means an official of the City, ar designee thereof; responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taaes. "CRD" means Community Facilities District No. 97-2 of the City of Chula Vista. "Cih�" means the Citv 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 Cit��of Chula V ista or his or her designee. °Community Purpose Facility Property" or "CPF Property" means all Assessor s Parcels which are classified as communiry purpose facilities and meet the requirements of City of Chu]a Vista Ordinance No. 2883. "CounciP' means the City Council of the City of Cl�ula Vista, acting as the legislative body of the CFD. "Counh'" means the County of San Diego, California. "De��eloped Properh�" means all Taxable Property for which a building permit was issued prior to the March ]st preceding the Fiscal Year in which the Special Tax is being levied. "Fina► Map Property" means any residential lot or non-residential lot created bv a Final Subdivision Map, but «-hich is not classified as Developed Property. "Final Subdivision Map" means a subdivision of property creating residential or non- residentia] buildable lots by recordation of a final subdivision inap or parcel 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 13�2, that creates individual ]ots for which building pennits may be issued without further subdivision and is recorded prior to March 1 preceding the Fiscal Year in wllich 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 CPD as amended from tiine to time. "Land Use Class" means any of the classes listed in Table 1, Table 2, or Table 3. Resolution No. 2013-16� Paee 9 of 16 "Maximum Special Tax" means the maximum Special Tak, determined in accordance with Section C below that ma�� be le�-ied in an�� Fiscai Yeaz on an�� Assessor`s Parcel of Taxable Propert�. "Non-Residential Properh�° means all Assessors Pazcels of Developed Property for which a buildin2 permit(s) has been issued for a structure or strucmres for non-residential use. "Operating Fund" means a fund that shall be maintained �vithin the CFD for each Fiscal 1'eaz to pay for Resource Monitoring and/or Presen�e Operations and Maintenance activities and Administrati��e Expenses. "Operating Fund Balance" means the amount of funds in the Operatine Fund at the end of the precedina Fiscal 1'eaz. "Operating Fund Requirement" means for an} Fiscal Year an amount equal to the Resource b4onitorine Fund Requirement and the Preserve Operations and �4aintenance Fund Requirement for the current Fiscal Year in �ahich Special Ta.�es aze levied. "Preserve Operations a�d Maintenance" means those acti��ities described in Attachment A hereto which is incorporated herein by this reference. "Preserve Operations and Mainteoance Fuud Requireme�Y' means for any Fiscal Year an amount equal to the budgeted costs for Presen�e Operations and A4aintenance plus a pro-rata share of the budgeted Administrative Expenses of the District for the current Fiscal Year in ���hich Special Taxes are levied. "Properh� Owner Association Properh�" means any property N�ithin the boundaries of Area C of the CFD that is o�rmed by; or irrevocabl�� dedicated as indicated in an instrument recorded ���ith the Counh� Recorder to, a property o��mer association, includine am� master or sub- association. "Public Properh�" means any propert}� within the boundaries of Area C of the CFD that is, at the time of the CFD formation. e�pected ro be used for any public purpose and is o��red b�� or dedicated to the federal government, the State, the Countv, the Citv or an�� other public aeencv. "Resen•e Fund" means a fund that shall be maintained for the CFD each Fiscal Year to provide necessan� cash flo��= for the first sis months of each Fiscal Yeaz. ���orkino capital to cover monitoring, maintenance and repair cost o��erruns and delinquencies in the pa��ment of Special Ta�es and a reasonable buffer to prevent large variations in annual Special Tae levies. "Resen�e Fund Balaoce" means the amount of funds in the Resen�e Fund at the end of the preceding Fiscal Yeaz. "Resen�e Fund Requirement" means an amount equal to up to ]00% of the Operatins Fund Requirement for an�� Fiscal Year. � Resolution No. 2013-164 Page 10 of 16 "Residential Propert,y" means all Assessor s Parcels of Developed Property for N�hich a building permit(s) has been issued for purposes of constructing one or more residential dwelling unit. "Resource Management Plad' 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 Ota}� Ranch Phase 2, Resource Management Plan dated June 4, ]996, as both such plans ma}� be amended from time to time. "Resource Monitoring Program" means those described in Attachment B hereto which is incorporated herein by this reference. "Resource Monitoring Fund Requiremcnt° means for any Fiscal Year an amount for each lmprovement Area equal to the ]mprovement Area's fair share of the budgeted costs of the Resource Monitoring Program plus a pro rata share of the budgeted Administrative Gxpenses 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 De��elopment Plan Planning Area for which a Resource Monitoring Program fundina mechanism has been established. "Special Tax" means the Special Tax le��ied pursuant to the provisions of sections C and D below in each Fiscal Year 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 Tares based on the delinquency rate for Special Taxes le��ied in the pre��ious Fiscal Year. "State" means the State of California. "Taxable Propertp" means all of the Assessor's Parcels within the boundaries of Area C of the CFD that are not eaempt from the Special Ta�: pursuant to law or as defined below. "Unde��eloped Property" means. for each Fiscal Year, all Taxable Property not dassified as Developed Property. Resolution No. 20li-164 Paee 11 of 16 B. AS5IGNMENT TO CATEGORIES OF SPECIAL TAa Each Fiscal Year using the definitioos abo��e, all Taxable Propert� ��•ithin Area C, Annexation 1�`0. 8 (Ota}• Raoch Alillenia), of the CFD sha❑ be classified as Categon� I, Categon� II, Categon� III or Ezempt. Developed Properh•, Final Map Properh• or Unde��eloped Properh�, and shall be subject to Special Taxes pursuant to Sections C and D below. Developed Properh� shall be further assigoed to a Land Use Class as specified in Table 1. C. MAXlA4UM SPECIAL TAX RATES Categon' 1 Categon• I includes Developed Properh� within the District ("Categon� I"). The Dlazimum Special Taa for Resource i�lonitoring, and Presen�e Operations and Niainteoance for Fiscal Year 2002/2003 on De�°eloped Properh- are the rates set forth in Table 1 belo�v. For Residential Propert��, the Special Taa shall be le�•ied based upon Building Square Footage and for Non-Residential Properh� shall be levied based on Acreage. TABLE 1 il�asimum Special Tax for Categon' I Communih� Facilities District No. 97-2 Improvement Area C (Fiscal 1'ear 2002/2003) Description Resource Operation & i1'Ionitoring A'Iaintenance Residential � �0.00�4 s fr S0.0086/s fr Non- 587.3126/acre �li8.61�2/acre Residential Category II Categorv ll includes each Assessor's Parcel of Taxable Property within the District for which a Final Map has bee� recorded, but �r•hich is not classified as a Developed Parcel ("Categor�� II"). Resolution No. 2013-164 PaQe 12 of 16 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 11 is the rate set forth in Table 2 below (said amount to be levied pro rata for any portion of an Acre). TABLE 2 Maximum Special Taz for Category II Community Facilities District No. 97-2 Improvement Area C (Fiscal Ycar 2002/2003) Resource Operation & Monitoring Maintenance $87.3126/acre $138.5152/acre Category [II 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 Taa appro��ed for Fiscal Year 2002/2003 on Taxable Property within Category I11 is the rate set forth iu Table 3 below (said amount to be levied pro rata for any portion of an Acre). TABLE 3 Mazimum Special Tas for Category III Community Facilities District No. 97-2 Improvement Area C (Fiscal Ycar 2002/2003) Resource Operation & Monitoring Maintenance Resolution?�o. 2013-]6� Pase 13 of 16 �6�.300�/acre �103.6696/acre Exempt Category The Esempt Category includes each properh� o���ned, con��e��ed or irre��ocabh� offered for dedication to a public agenc�•, or land �rhich is iu the public right-of-wa}�, uumanned utilih� easeme�ts 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 Categon�"). Annual Escalatiou Of 14aaimum Special Ta� The Alasimum Special Tas as sho�r•n in the tables above that ma�� be le�•ied on each Assessor's Parcel in Area C shall be increased each Fiscal Pear beginning in Fiscal l'ear 2003/200a and thereafter by a factor equal to the annual percentage change in the San Diego A7etropolitan Area all Urban Consumer Price Indes (All Items). D. D'IETHOD OF APPORTIONAIENT OF THE SPECIAL TAX Commencing with Fiscal Year 2003/2009, and for each follo�ti ing Fiscal 1'ear, the Council shall le�ry� the Area C Special Tas at the rates established pursuant to steps 1 through 4 below so that the amount of the Special Taz levied equals the Special Tax Requirement. The Special Tas shall be levied each Fiscal 1'ear as follo«�s: Step 1: Determiue the re�enue �ehich could be geoerated b�� Parcels assigned to Categon� I b�� multiplying the Building Square Footage for Parcels classified as Residential Parcels by the A7aximum Special Taz per Building Square Foot for Resource A7onitoring, and Presen�e Operations aud A7aintenance for Parcels and adding to that the maximum revenue �vhic6 could be generated bp multipl�•ing the total acres for Parcels classified as Non-Residential Parcels b�� the A4acimum Special Tax per Acre (or Resource Monitoring and Presen�e Operations and Maintenance. Step 2: If the total revenue as calculated in Step 1 is greater than the estimated Special Tas Liabilih� for Improvement Area C, reduce the Special Tas for each Parcel proportionateh� so that the Special Tax le��� for the Fiscal Year is equal to the Special Tas Liability for the Fiscal 1'ear. Step 3: If the total re�•enue as calculated in Step 1 is less than the Special Taz Liabilih• for Improvement Area C, a Special Ta� shall be Ie�-ied upon each Parcel within Improvement Area C, classi5ed as Category� [L The Special Tas for Parcels assigned to Category II shall be calculated as the lesser of: (i) The Special Tas Liabilih� for Improveme�t Area C as determined by the Cih�, less the total re��enue generated for all Parcels under Step 1 above, divided b�� the total Acres for all Parcels �vithin Improeement Area C assigned to Categorv II, OR Resolution No. 2013-164 Pace 14 of 16 (ii) The Maximum Special Tax rate for Parcels assigned to Categon' 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 upou each Parcel within Improvement Area C classified as Category III. The Special Taz for Parcels assigned the Categon� lll shall be calculated as the lesser of: (i) The Special Taa Liability for Impro��ement Arca C as determined by the City, less the total revenue generated for all Parcels under Step 1 and 3 above, divided by the total Acres for all Parcels within Improvement Area C assigned to Category III, OR (ii) The Maximum Special Tas rate for Parcels assigned to Category III and within Impro��ement Area C. However, in the event it is determined that the Special Tax Liability for Improvement Area C includes delinquent Special Taxes from Parccl in Category Ill from the prior Fiscal Year, the City shall determine the amount of delinyuent 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 Yhe remaining portion of the Special Taz Liability not related to delinquent Special Taxes to be collected from all Parcels in Category lll according to the procedure set forth in the preceding paragraph. Noh��ithstanding 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 annualh� up to the Masimum Special Tax as a consequence of delinquency or default by the owner of an�� other Assessor's Parcel within Area C of the CFD. E. APPEALS Any landowner or resident who pavs 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 ]evied on such Assessor's Parcel. If following such consultation and action, if any, by the CFD Administrator, the lando���ner or resident believes such error still exists, such person may file a written notice with the City Clerk of the City appealing the amount oP 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 ro 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 landowmer or resident appeals, as herein specified. The decision of the Review/Appeal Committee shall be final and binding as to all persons. Resolution No. 2013-16� Paee 1� of 16 F. M.�1'1ER OF COLLECTION Special Taxes levied pursuant to Section D above shall be collected iu the same manner and at the same time as ordinan• ad valorem properh tazes; provided, howe��er, that the CFD Administrator ma}� directl�� bill the Special Tax, mav collect Special Tazes at a different time or in a different manner if necessan� to meet the financial obligations of Area C of the CFD or as othen�•ise determined appropriate b�� the CFD Administrator. G. TERA7 OF SPECIAL T� Taxable Properh� in Impro��ement Area C of the CFD shall remaiu subject to the Special Taz io perpetuih�. Resolution No. 2013-164 Page 16 of 16 Attachment A Description of Preserve Operations and Maintenance Presen�e Operations and Maintenance includes the maintenance, operation and management of the public or private propertti- within boundaries of the Otay Rancli 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 presen�ation ]and 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 tluough: cultivation, irrigation, trimming, spraying, fertilizing, and/or treatment of disease or injury; removal of trimmings, rubbish, debris and other solid �i�aste; maintenance of trails; removal and control of exotic plant species (��eeds); and control of co«�birds tl�rough trapping. (ii) Security. Development, implementation and ongoing pro��ision of security programs to: enforce "no trespassing" rules; curtail activities that degrade resources, such as grazing, shooting, and illegal dumping; remo��e 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 manaeement of the open space and habitat presen�ation land within the Otay Ranch Preser��e ma}� 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. 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 indudina wildlife species, sensitive plants and sensitive l�abitat 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 necessary in order to effectively provide such services consistent with the requirements of the Resource Management Plan.