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Home My WebLink About2013/11/05 Item 11 � - - � ' � ---�>�.=� ��_ CITY COUNCIL . - � -�.= AGENDA STATEMENT . -�� II� � '��CHULA VISTA llh/13, Item �� ITEA1 TITLE: RESOLtiTIOi�T OF THE CITY COUI�TCIL OF THE CITY OF CHUL.A VISTA APPROVII�'G r1i�1 AGREEMENT FOR REFUi�TDING SPECIAL TAXES PAID ON CERTAI\i PARCELS WITHII�' COA4MUI�jITY FACILITIES DISTRICT NO. 08A4 .Si\TD AA4EI�'DI�'G THE FY201.i/1=3 COi��L�4UNITY FACILITY DISTRICT 08M BUDGET BY APPROPRIATING �2�,236 FROM THE RESERVE TO THE OTHER EXPEI�TSES CATEGORY OF CFD 08D4 VILLAGE 6 AND AUTHORIZING REFUNDS IN THE P.A40IJ�TT OF �25.236 FOR OVERPAYMENT OF ASSESSMENTS AND ORDERli�'G THE RECORDATIO?�T OF A NOTICE OF CESSATIOIv OF SPECIAL TAX LIEN SUBn'IITTED BP: DIRECTOR OF PUBLIC �4'ORKS � ADMIi`iISTRATIVE SER �ICES I�4 'AGER "�� REVIENED BI': CITY MANAGER ASSISTrl\rT CITI' 4AI�'AGER� 4hTHS �'OTE: YES � NO ❑ SU14��LAR1' Two properties ��-ithin CFD 08M (Otay Ranch Villaee 6) were incorrectly chareed special ta�es/assessments. The resolution ��ill authorize staff to make refunds by appropriating $2�;236 from available CFD 08n4 funds and �Rll direct the Citv Clerk to record a Notice of Cessation of Special Tax Lien as to the parcels which were incorrectly chazged. ENVIRON�ZENTAL REVIE�i' The Development Sen�ices Director has revie��ed the proposed activity for compliance �vith 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 it im�oh�es eovemmental administrative/fiscal activities that ��ill not result in direct or indirect physical chanees to the environment. Therefore; pursuant to Section 1�060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no em�ironmental re��iew is required. RECOn1�4ENDATION Councii adopt the resolution. 11-1 I1/�/l3, Item �� Page 2 of 3 BOARDS/COAZn4ISSION RECOA4MENDATION T��ot applicable. DISCUSSION CFD 08M was established in 2002 in conjunction with the development of Otay Ranch Village 6 to ensure financing for perpetual maintenance of (a) landscaped areas within public rights-of- way and other public easements throughout the District and (b) facilities that are directly related to storm water qualit}� control throughout the District. Each year, a special tax/assessment must be levied to pay for such mainfenance. Once City Council approves the annual collectible amount, it is sent to the County for inclusion on the property tax bill. Due ro questions raised by t«�o of the property owners along w�ith additional documentation, NBS, the City's consultant; along with CiCy staff researclied the special taxes levied against certain properties identified below and located east of and adjacent to_the SR 125 right-of-N�ay. The documentation provided by the property owners indicated that these properties should have been segregated from the CFD following recordation of a ma}� that separated such properties from the remainder of the properties within the CFD that are located west of the SR 125 right-of- way. Such a map was subsequently recorded but such properties were not then segregated from the CFD. This change should have resulted in the properties no longer being subject to the CFD 08M special tax/assessment. The documentation and information provided resulted in a determination that a refund should be due to the property owners as a result of the parcels beine classified incorrectly taxable property and levied as such, during Fiscal Years 2011/12 and 2012/13 tax years. Refunds will be issued in the amounts indicated in the table below: Refund Pro e �O��ner APN Amount Villa e II To��n Center LLC 643-020-88-00 $17,508 Sunranch Ca ital Partners LLC 643-051-56-00 $ 7,728 � TOTAL $25,236 A total of$25,236 will be refunded to the property owners as these amounts w�ere paid via their proper[y tax bill. RECORDATION OF A NOTICE OF CESSATION When the City Council determines tbat a special tax shall cease to be levied on parcels��ithin a community facilities district, Goverrunent Code Section 53330.5 provides that the City Council shall direct the City Clerk to record a Notice of Cessation of Special Tax that shall state that the obligation to pa}� the special tax has ceased as to such parcels and that the lien imposed on such pazcels by the Notice of Special Tax Lien is extinguished. By adoption of the attached Resolution, the City Council will be making the determination that the special tax shall cease to be levied on the above identified properties and ordering the City Clerk to reeord a Notice of Cessation as required pursuant to Government Code Section 53330.5. 11 -2 11/5/13, Item �� Page 3 of 3 DECISION n�1KER CONF'LICT Staff has reviewed the propert}� holdines of the City Council and has found no property holdines ��ithin �00 feet of the boundaries of the propert��; ��hich is the subject of this action. Staff is not independently a��are; nor has staff been informed b�� anv City Council member, of any other fact that mav constitute a basis for a decision maker conflict of interest in this matter. CLiRRENT I'EAR FISC:IL IAIPACT There is no direct impact to the General Fund. Approval of the resolution appropriates $2�;236 from the reserve from CFD 08A� in order to process the necessaz}� refunds. ONGOING FISCAL I12PACT None. ATTACHA'IENT CFD 08\4 boundazy map Aereement for Refundine Speciai Ta�es Paid ��ithin CFD 08M Resolution Prepared by: Robert Beamon, Administrative Services d�anager J:�En�inttrV+GENDA\CAS201iU 1-Oi-13ViEPORT-PN'-CFD08M RcfundREV Funher Re��ised.doc 11 -3 .. ` _ � �l = . . ��tt�5 � � \6G _ ms = . `. �t �1� _- �Ln � = � �f ff�"� � 5$= `! y' 3fi V > O . v v' °-3°, �i�� sM � c � � � X�de . e�`� `s: � � Z z� \ �a�a1 �C��a �� C� ; - � L� : a o �� ` -`�� ;a, _e � r� T � I au_o I � �° E � � � e g�j i �� V � :� � .ee9= I �° =„ y �� gF ;4 � ` � _ f�.6S 4�L �o �. _ � . � ' `25M � � $s n � � � ;^�e; ��'Jr��a =� _° ° = p � E 3SE� OR p 5 -�- ,� - s., sa � ', , � o az=Y: r<. kn �'_ . � ' h c . r L -'�°$ v �"i� S� «35 =a . � ` $ o � a �` -j��I I = <`V� 'T'•"' �aY g' L � � y � ��" s �a t ��°S�y '.N: s N � 6a o2 � � ` y�'g,' =rsY �� ?�-� ��ta �se -' o O i . � � i ��y-D �Sa � ��E r �o- _� W o . � �o y�:aa �o �e:k '��: �-� � � , '_ i ° � 1 � � c � �Z in O � � G ,L U C U ` � o � O I— '�< cemn�.�wi:)szt � � C� — � �J- � � OO >=` ' I C�� i <<j ' � � J'� j i e.w Q �— �°� _ � �'�. o �' � 1 TL J OYU u � I / ' . b �� < J }, (� r�� CC�1o=I: I �'- , r i !YQ Ul� =<V1 . \J _ . ^� ( QL _ � \/ C 'pi�e m e \ g . � . . Z r i \ \\ � :� �Z : �� : ,J - ; � � - I ° - U � ' ` ' j _� � � �_ ° � _< o 0 � _ _` _ � � � -, i ". �_ � � � _ � z e� �.'�'h� � g Kl 1 �� c�3 a �D j Y �s^� � � J o � ti. � � 1 �i i� � F,'^. - � E J �.� ,� � � ^' � • � M S k 1 . " ' . N Hy -�"1 C _ M . 1 A� . . . . � > f� I�o - `f . L ' Fy - ` �'."� ' . _ - ° a �� p . ' - q e . £.'. - , .- ? : . . . .g 'i'� 'f' �� -� e8 g a Q �,� ' . ' � . . . � !� t � � �0 . „ ( � . . �� y , �'�...F �; /.� � � �L ;I`. 1 1 -4 � ` . � AGREEMENT FOR REFUNDING SPECIAL TAXES PAID WITHIN COMMUNITY FACILiTIES DISTRICT NO. 08-M OF THE CITY OF CHULA VISTA This Agreement (°Agreement�, effective as of the Effective Date (defined in Sedion 5. Below), is entered into by and between the City of Chula Vista (the 'City"), acting for and on behalf of Community Facilities District No. 08M (Village 6, McMillin Otay Ranch and Otay Ranch Company) (°CFD No. 08-M"), a community facilities distrid formed and existing pursuant to the Mello-Roos Community Facilities Act of 1982 (Government Code Section 53311 and following) and , Village II Town Center LLC ('Village II"), a California limited liability company, and Sunranch Capitai Partners LLC ("Sunrench�, a Delaware limited liability company (each a 'Party' and collectively,the "Perties"). RECITALS A. In 2002, the City undertook proceedings to form and did form CFD No.08-M and designate Improvement Area No. 2 therein ("Improvement Area No. 2� for the purpose of financing perpetuai maintenance of(a)wetlands and landscaped areas within public rightr-of-way and other public easements throughout CFD No. 08-M and (b)facilities that are diredly related to storm water quality throughout CFD No. 08-M. The City, acting on behalf of CFD No. 08-M, subsequently levied special taxes on property owners within CFD No. 08-M, including Improvement Area No. 2, to finance such maintenance (the "Special Taxes"). B. Within Improvement Area 2, Village II owns property identified as Assessors Parcel No. 643-020-88-00 (the "Village D PropertY) and Sunrench owns property identified as Assessors Parcel No. 643-051-56-00 (the "Sunranch Property'). (collectively, the "Properties"). These Properties were within the boundaries of Improvement Area 2 at the time CFD No. 08-M was formed and Improvement Area No.2 was designated. C. CFD No. O8-M is authorized to levy the Special Taxes within Improvement Area No. 2 pursuant to a rate and method of apportionment of such Special Taxes (the 'Rate and Method°) as set forth in the Notice of Special Tax Lien recorded on March 10, 2003 in the Official Records of the County of San Diego as Document No. 2003-0268561 (the °NOtice of Special Tax Lien°). D. The Rate and Method provides that each Fiscal Year all °Taxable Property° shail be subject to the levy of the Special Taxes in accordance with the Rate and Method. Taxable Property includes property located within Improvement Area 2 and not exempt from the Special Tax by law, or pursuant to the terms of the Rate and Method. E. Viliaqe II and Sunranch recently provided documentation to the City and the Cit�s consultant, NBS, evidencing that the Properties' boundaries changed subsequent to formation of CFD 08M. As a result of the boundary changes, the Properties should not have been subject to the levy of special taxes for Improvement Area No. 2 of CFD 08M for the fiscal years 2011/12 and 2012/13. City staff and NBS have confirmed that, as a result of the Properties' Page 1 of 7 11 -5 boundary changes, Village II and Sunranch overpaid $17,507.12 and $7,728.00, respectively, in special taxes for Improvement Area No. 2 of CFD 08-M. As a res�lt, the �ity, acting on behalf of CFD No. 08-M, is prepared to refund those amounts to Village II and Sunranch. F. Accordingly, the Parties hereto desire to enter into this Agreement to memorialize the Parties' understandings and representations with respect to the refunds. TERMS NOW,THEREFORE, for and in consideration of the mutual covenants set forth below, and other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, City, Village II and Sunranch hereby agree as follows: 1. Property Ownership. —_ Village II represents that it owns the Village 2 Property within Improvement Area No. 2. Sunrench represents that it owns the Sunranch Property within Improvement Area 2. 2. Levy of Spxial Taxes. The Parties acknowledge and agree that, pursuant to the Rate and Method, Special Taxes for Improvement Area No. 2 of CFD N0. 08-M were levied in fiscal years 2011/12 and 2012/13 through the property tax rolls, in the same manner as ordinary od va(orem property taxes. 3. Payment of Special Taxes and Claims for Refund. Village II represents that it paid, via the San Diego County Tax Collector, Special Taxes levied on the Village II Property for Improvement Area No. 2 in the amount of $17,507.12 during fiscal years 2011/12 and 2012/13. Village II represents that it has not and will not seek a refund of these amounts from the County of San Diego. Sunranch represents that it paid, via the San Diego County Tax Collector, Special Taxes levied on the Sunranch Property for Improvement Area No. 2 in the amount of $7,728.00 during fiscal years 2011/12 and 2012/13. Sunranch II represents that it has not, and will not, seek a refund of these amounts from the County of San Diego. 4. Processing of Refunds. In reliance on the representations made by Village II and Sunranch in this Agreement, the CiTy agrees to refund Special Taxes levied for Improvement Area No. 2 in fiscal years 2011/12 and 2012/13 to Village II, in the amount of $17,507.12, and to Sunranch, in the amount of$7,728.00. Page 2 of 7 11 -6 5. Waiver of Rightr and Release of Claims. From and after the effective date of this Agreement, except with respect to the obligations created by, acknowledged or arising out of this Agreement, Village D hereby fully and forever releases and discharges the City and CFD No. 8-M and their respective elected and/or appointed officers, agents and employees, from any claims, demands, causes of action, judgments, obligations, cosu, expenses, disbursements, attorneys' fees, damages, charges, including losses and liabilities of whatever kind or nature, including any and all claims or amountr arising by statute, common law, contract, indemnity, contribution, tort, equity, court orders or othenvise, whether liquidated or unliquidated, absolute or contingent, whether known or unknown, that have been made or couid have been made at anytime to and including the date of this Agreement, arising out of or related to the lery of Special Taxes for Improvement Area No. 2 on the Village II Property for fiscal years 2011/12 and 2012/13, the collection of those Special Tax payments and the refund of those Special Tax payments to Village II by the City. From and after the effective date of this Agreement, except with resped to the obligations created by, acknowledged or arising out of this Agreement, Sunranch hereby fully and forever release and discharge the City and CFD No. 08-M and their respective eleded and/or appointed officers, agents and employees, from any claims, demands, causes of action, judgments, obligations, costs, expenses, disbursements, attorneys' fees, damages, charges, including losses and liabilities of whatever kind or nature, including any and all claims or amounts arising by statute, common law, contract, indemnity, contribution, tort, equity, court orders or otherwise, whether liquidated or unliquidated, absolute or contingent, whether known or unknown, that have been made or could have been made at anytime to and including the date of this Agreement, arising out of or related to the arising out of or related to the levy of Special Taxes for Improvement Area No. 2 on the Sunranch Property for fiscal years 2011/12 and 2012/13, the collection of those Special Tax payments and the refund of those Special Tax payments to Village II by the City. From and after the effective date of this Agreement, except with respect to the obligations created by, acknowledged or arising out of the Agreement, City and CFD No. 08-M hereby fully and forever release and discharge the Sunranch and Village II and their respedive elected and/or appointed o�cers, agents and employees, from any claims, demands, causes of adion,judgmenu, obligations, costs, expenses, disbursements, attorneys' fees, damages, charges, including losses and liabilities of whatever kind or nature, including any and all claims or amounts arising by statute, common law, contract, indemnity, contribution, tort, equity, court orders or otherwise, whether liquidated or unliquidated, absolute or contingent, whether known or unknown, that have been made or could have been made at anytime to and including the date of this Agreement, arising out of or related to the arising out of or related to the lery of Special Taxes for Improvement Area No. 2 on the Village II Property and the Sunranch Property for fiscal years 2011/12 and 2012/13, the collection of those Special Tax payments and the refund of those Special Tax payments to Village II by the City. Page 3 of 7 11 -7 4. Civil Code Section 1542 Waiver. All rights under Section 1542 of the California Civil Code are expressly waived by Village II and Sunranch,who have read Section 1542 and understand that it provides as follows: A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release which if known by him must have materially affected his settlement with the debtor. With resped to the claims expressly released in this Agreement, the releases extend to all such claims of any nature and kind whether known or unknown. Accordingly, the Parties, for and on behalf of themselves and their respective managers, officers, directors, shareholders, employees, independent contrectors while ading on behalf of the Parties, representatives, attorneys, parent companies, subsidiaries, divisions, assigns, predecessors and successors, hereby waive any rights they may have under the provisions of California Civil Code § 1542, and the provisions of any comparable law of any applicable jurisdiction except as provided in this Agreement. In connection with this waiver, the Parties acknowledge that they are aware that facts may hereafter be discovered in addition to or different from those now known or believed to be true with resped to this release, but that it is the intention of each Party to hereby fully, finally and forever,release and discharge each other, and thus this release shall remain in effect as a full and complete release notwithstanding the later discovery or existence of any such additional or different fads. 5. Effective Date of Agreement. This Agreement shall become effective only upon the execution of th�s Agreement by each of the Parties as evidenced by the date of execution. 6. Additional Terms of Agreement. a. Except as specifically modified herein, all terms, conditions, rights and obligations contained in the Rate and Method remain in full force and effect. b. Each of the Parties acknowledge that it has been given the opportunity to consult with independent legal counsel, that it has carefully read and fully understands all of the provisions of this Agreement and that it is voluntarily entering into this Agreement. c. This Agreement is the result of compromise and shall never at any time for any purpose be considered an admission of liability or responsibility on the part of any Party hereto, and all Parties continue to deny such liability and to disclaim such responsibility. Page 4 of 7 11 -8 d. This Agreement is made in, and shall be governed, construed and enforced under, the laws of the State of California. Each Party hereto agrees that the proper venue for any action arising out of the breach or interpretation of this Agreement or other documents delivered pursuant to any provision thereof shall be in the County of San Diego. e. This Agreement constitutes the complete agreement of the Parties hereto with respect to the subject matters referenced to herein and supersedes all prior or contemporaneous negotiations, agreements or representations with respec[ thereto, all of which have become merged and fully integrated into this Agreement. f. This Agreement may not be modified, amended, supplemented or terminated, and no provision of this Agreement shall be waived, except by a writing executed by all parties to this Agreement. g. The signatories to this Agreement represent that they have read and fu�ly understand the Agreement, and they are authorized to execute the Agreement on behalf of their respective Party and hereby binds such Party h. The recitals set forth above are true and corred and are incorporated into this Agreement as though fully set forth herein.. i. This Agreement may be executed in counterparts, each of which shali be deemed an original and all of which shall constitute together one and the same instrument. Any party may deliver its signature to this Agreement by facsimile or by e- mail. Any party that receives an executed signature page from another party by facsimile or e-mail may rely upon said signature as though it was a signed original. [Remainder of this page left blank Next page is the signature page.) Pa e5of7 �I 1 -9 IN WITNESS WHEREOF, City, Village II and Sunranch have executed this Agreement, indicating that they have read and understood same, and indicate their full and complete consent to its terms: Executed on: Village II Town Center, LLC, a California limited liability company By: � � � Stephen M. Haase Vice President = Date: �G/.�,1.�ti �.0 � ��3 Sunranch Capital Partners LLC, a Delaware limited liability company By: �`�"�—r" LL\� Stephen M. Haase v Vice President Date: VLC-G(,�-C�. �� 3 P��61ti� City of Chula �sta BY Mayor Cheryl Cox Date: AttesY. Donna Norris, City Clerk Approved as to form: Glen R. Googins, City Attorney Pa e7of7 � 1-11 RESOLUTION NO. 2013- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AGREEMENT FOR REFUNDING SPECIAL TAXES PAID FOR CERTAIN PARCELS WITHIN COMMLJNITY FACILITIES DISTRICT I�'O. 08M AND AMENDING THE FY20li/14 COMMUI�TITY FACILITY DISTRICT 08M BUDG�T BY APPROPRIATII`'G �25.236 FROM THE RESERVE TO THE OTHER EXPENSES CATEGORY OF CFD 08M VILLAG� 6 AND AUTHORIZING REFUNDS IN THE AMOUNT OF $25,236 FOR OVERPAYI�4ENT OF ASSESSMENTS AND ORDERiNG THE RECORDATION OF A NOTICr OF CESSATION OF SPECIAL TAX LIEN WHEREAS, t��o properiies �vithin Improvement Area No. 2 of Coixununity Facilities District No. 08A4 (Otay Ranch Village 6) (the "District") were incorrectly charged special taxes/assessments: and WHEREAS, due to questions raised by two of the property owners along with additional documentation; NBS, the City's consultant, along with City staff researched the special taxes levied against these properties; and WHEREAS, the documentation provided by the property owner indicated that the properties should have been segregated from the CFD following a change in each of the property owners parcePs boundaries; and WHEREAS, this change would l�ave resulted in the properties no longer being subject to the CPD 08M special tax/assessment; and WHEREAS, the documentation and information provided resulted in a refund being due to the propertv otimers as a result of the parcels being classified incorrectly and levied as such, during Fiscal Years 20ll/]2 and 2012/13 tax years; and WHEREAS, refunds will be issued in amounts indicated in the table below: Refund Pro erty O��ner2 APN Amount Villa e ll Town Center LLC 643-020-88-00 $17,508 Sunranch Capital Partners LLC 643-051-56-00 $ 7,728 TOTAL $25,238 WHEREAS, a total of$25;236 will be refunded to the property owners as these amounts were paid via their property tax bill; and J:Wttomev�F'1NAI,RBSOS ANll ORDINANCHS\2013\I I OS 13\RI>SO-PN'-CFD08M IZefund lievised.doc ioisin_ois �o:as�� 1 1-1 2 Resolution I�'o. Paee Z A'IIEREAS_ based upon the above determinations, this City Council, acting as the legislative body of the District, desires to cause to be recorded a i�'otice of Cessation of Special Ta� Lien, pursuant to section �3330.� of tt�e Califomia Government Code, to give notice that the obligation to pa}� the special tas for Impro��ement Area I�'o. 2 of the District has ceased and the lien unposed the abo�e identified properties bv the recordation of the Notice of Special Ta� Lien as to Improvement Area No. 2 thereto. has been extinguished as to tbese properties. I�'OW. THEREFORE. BE IT RESOLVED that: SECTIOI�' 1. The City Council of the Citv of Chula Vista does appro��e an agreement for refundin� special ta�:es paid nithin Community Facilin� District 08A4 and amend the FY2013/14 Communirv Facilitv District 08n� budeet by appropriating $2�,236 from the reserve to the other e�penses categon� of CFD 08T9 Villaoe 6 and authorizing refunds in the amount of �2�,236 for o��erpayment of assessments. - - SECTIOI�' 2. The Cit�� Council hereby determines that the special tax authorized to be le��ied within Improvement Area I�'o. 2 of the District against the properties identified hereinabo��e is no lon�er needed to pay the costs and incidental expenses of the ser��ices authorized to be financed from the proceeds of such special ta�es. This Ciri� Council hereby further determines that such special taK shall cease to be levied on such properties. SECTIOI�' 3. The Citv Clerk. acting for and on behalf of the District is hereby ordered to - cause a I�'otice of Cessation of Special Tax to be recorded in the office of the Counh� Recorder of the Counn�of San Dieeo pursuant to Govemment Code Section �3330.� asainst such properties. Presented by: Appro��ed as to form by: �� '�_�� ,, ��.p� Richazd A. Hopkins Glen R. Googins .�c��L�\\��`" " Director of Public �l'orks City Attomev � U l:Wttomev�F'INAL RESOS.47�`D ORDI1�.4\CES�2013U 1 OS 13U2ES0-PN'-CFD08A9 Refund Revised.doc 10/31/2013 10:45�Uf 11 -13