Loading...
HomeMy WebLinkAboutReso 2016-049 RESOLUTION NO. 2016-049 RESOLUTTON OF THE CITY COUt�'CIL OF THE CITY OF CHULA VISTA FORI�4II�'G AI`iD ESTABLISHA'G COMMUI�'ITl' FACILITIES DISTRICTI�'O. 17-I(WESTERI�T CHULA VISTA DIF FIi�'AIvCI?vG PROGRAA9)AI�iD AUTHORIZIIvG SUBMITCAL OF THE LEVY OF SPECIAL T.A�ES V�'ITHIN SUCH COMMUI�'ITY FACILITIES DISTRICT TO THE QUALIFIED ELECTORS THEREOF WHEREAS,t6e Cim Council of the Cit��of Chula Vista,Califomia(the"Ciry Council").has, by the adoption on February 9; 2016 of Resolution No. 2016-018 (the "Resolution of Intention'), previously dedared its intention to form a communit}�facilities district and ordered the prepazation of a Communin� Facilities District Report relating to the initiation of proceedings to create such community facilities district pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982,"beine Chapter 2.�, Part 1,Di��ision 2,Title � of the Govemment Code ofthe State ofCalifornia(the`:Acr')and the Cit��ofChula Vista Community Facilities District Ordinance enacted pursuant to the po�ti�ers resen�ed by the Cin� of Chula Vista under Sections 3; � and 7 of Article XI ofthe Constitution of the State of California(the"Ordinance")(the Act and the Ordinance mati� be referred to collectiveh� as the "Community Facilities District Law`). This communitv facilities district shall hereina8er be referred to as Community Facilities District No. 17-[ (Westem Chula Vista DIF Financing Program) (the "District�`); and WHEREAS.notice ofa public hearing relatin�to the establishment ofthe District,the estent of the District,the financing of the payment of certain de��elopment impact fee oblieations described herein below and all other related matters has been ei��en. and a Communirv Facilities District Report; as ordered b��this Cin�CounciL has been presented to this Cin�Council and has been made a part of the record of the hearing to establish such District; and �VHEREAS.all communications relatine to the establishment ofthe District,the financine of such development impact fee obligations and the rate and method of apponionment of special ta.� proposed to be levied N�ithin the District have been presented,and it has further been determined that a majority protest as defined b�� la�v has not been recei��ed against these proceedings or the le���of the special tax; and WHEREAS; the Reeistrar of Voters of the Counh�of San Diego has cenified that there are no registered voters residino ��•ithin the proposed boundaries of the District; and WHEREAS. inasmuch as there have been no reeistered��oters residine���ithin the territon�of the District for at least the precedino nineh�(90)da�:s;the authorization to le���special ta3es�vithin the District shall be submitted to the landowner of the District. such landoH�ner being the qualified elector as authorized bv la�i�. Resolution No. 2016-049 Page No. 2 NOW. THEREFORE. BE IT RESOLVED AS FOLLOWS: SECTION 1. Recitals. The above recitals are all true and correct. SECTION 2. Determinations. It is hereby determined by this Ciry Council that: A. All prior proceedings pertaining to the formation of the District were valid and taken in conformity with the requirements of the law,and specifically the provisions ofthe Communiry Facilities District Law, and that this finding and determination is made pursuant to the provisions of Government Code Section 53325.1. B. The�Titten protests received,if any,do not represent a majority protest as defined by the applicable provisions of the Community Facilities District Law and as applied to the District and, therefore, the special tax proposed to be levied within the District has not been precluded by majority protest pursuant to Section S.i324 of the Government Code of the State of California. C. The District as proposed conforms with the City of Chula Vista Statement of Goals and Policies Regarding the Establishment of Communiry Facilities Districts (the "Goals and Policies�'), as amended. D. No registered voter has resided within the territory of the District for each of the ninery (90) days preceding the close of the public hearing,therefore, pursuant to the Act the qualified electors of the District shall be the landowners of the District as such term is defined in Government Code Section 53317(�and each such landowner who is the o�mer of record as of the close of the public hearing, or the authorized representative thereof shall have one vote for each acre or portion of an acre of land that she or he owns within the District. E. The time limit specified by the Community Facilities District Law for conducting an election to submit the levy ofthe special taxes to the qualified electors of the District and the requirements for impartial analysis and ballot arguments have been waived with the unanimous consent of the qualified electors of the District. F. The :City Clerk, acting as the election official, has consented to conducting any required election on a date which is less than 125 days following the adoption of any resolution forming and establishing the District. SECTION 3. Communitv Facilities District Report. The Community Facilities District Report for the District(the"Report�');as now submitted by Willdan Financial Services, Special Tax ConsultanL shall stand as the report as required pursuant to Governinent Code Section 53321.5 for all future proceedings and all terms and contents are approved as set forth therein. Resolution No. 2016-0�9 Pa�e No. 3 SECTION 4. \'ame of District. The Cin� Council does hereb� establish and dedaze the formation of the District known and desienated as"Communin�Facilities District I�'o. 17-1(�i'estern Chula Vista DIF Financine Program)." SECTIOI�' �. Boundaries of District. The boundaries of the District are aenerall��described as follow�s: � All property ���ithin the boundaries of Communit}� Facilities District No. 17-I (��%estem Chula Vista DIF Financine Program), as shown on a boundarv map as pre��iously approved by this Cin�Council. such map desienated b��the name of this District; a copy of���hich is on file in the Office of the Citv Clerk. The boundan•map of the proposed District has been filed pursuant ro Sections 3111 and 3113 of the Streets and Hiehwa��s Code of the State of Califomia in the Office of the Counh� Recorder of the Counn�of San Dieoo. at Page26 of Book 4� of the Book of A4aps of Assessment and Communiri� Facilities Districts for such Counn� as Document No. 2016-7000074. SECTIOI�' 6. Description of the Development Imvact Fee Oblieations Authorized To Be Financed.A�eneral description of the development impact fee oblieations the pa}�nent of which aze proposed to be financed under these proceedings aze those de�elopment impact fee oblieations imposed b}� the Cin� in connection with the appro��al of a de��elopment project to be de��eloped on propem located within the District. Such fees ma�� include: (i) the Public Facilities De��elopment Impact Fee pursuant to Chula Vista n4unicipal Code(`CVMC")section 3.�0.et seq. ("PFDIF");(ii) the Western Transportation Development Impact Fee pursuant to CVMC section 3.», et seq. (`WTDIF"); and (iii) the Pazk Development Fee pursuant to CVMC section 17.10, et seq. ("PAD" and toQether with the PFDIF and TDIF, the "D[Fs' and the obligation to pa�� the DIFs, the `�DIF Oblieation'). The proceeds of the pa��ment of the DIF Oblieations �vill pa}� for facilities �ti�hich this Cin� Council is authorized by laH� to contribute re��enue to or to construct, own, or operate (the "DIF Facilities '). It is herebv further determined that the DIF Facilities are necessan�to meet increased demands and needs placed upon the City as a result of de��elopment ���ithin the District. The cost of the pa}�ment of DIF Oblieations includes certain Incidental Espenses as such term is defined in Govemment Code Section �3317(e) and ma�� include, but not be limited to, all costs associated with the establishment ofthe District; the costs ofcollectine anv special ta�es; and costs otheni ise incurred in order to cam out the authorized purposes of the District. SECTIOI�' 7. SPECIAL TAX. Except where funds are othenvise available. a special ta� sufficient to finance the payment of the DIF Oblieations and related [ncidental Espenses authorized b� the Communirv Facilities District La�v. secured bv recordation of a continuine lien aaainst all non-ezempt real propem�in the District, is hereb}�authorized. subject to voter appro��al,to be le�ied annuall�� ���ithin the boundazies of the District. For further particulars as to the rate and method of apportionment of the proposed special ta� (the "Rate and A4ethod of Apponionment") reference is made to the attached and incorporated Eshibit A, which sets forth in sufficient detail the method of apportionmen[to allow each lando��•ner or resident �i�ithin the proposed District to clearh:estimate the maximum amount that such person will ha��e to pay. Resolution No. 2016-049 Page No. 4 Under no circumstances will the special tax levied in any P'iscal Year against any residential parcel be increased as a consequence of delinquency or default by the owner or owners of any other parcel or pazcels within the District by more than 10 percent (10%) above the amount that would have been levied in that Fiscal Yeaz had there never been any such delinquencies or defaults. A parcel shall be considered"used for private residential purposes"not later than the date on which an occupancy permit or the equivalent for private residential use is issued for such pazcel. The special taaes herein proposed, to the extent possible, shall be collected in the same manner as ad valorem property ta�es or in such other manner at this City Council or its designee shall determine; including, without limitation, direct billing of ihe affected proper[y owners, 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 specia] taxes that may not be collected on the Counry tax roll shall be collected through a direct billing procedure by the Treasurer of the City of Chula Vista(the "City"), acting for and on behalf of the District. The special tax obligation for any parcel may be prepaid and permanently satisfied in whole or in part pursuant to the provisions therefor contained in the Rate and Method of Apportionment. Pursuant to Govemment Code Section 53340 and except as provided in Government Code Section 53317.�, properties of entities of the state, federal, and local govemments shall be exempt from the levy of the Special Ta�c. Upon recordation of a Notice of Special Tax Lien pursuant to Section 3114.5 of the Streets and Highways Code of the State of California against the property within the District, a continuing lien to secure each levy of the special tax shall attach to all non-exempt real property in the District and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the tax by the City Council ceases. SECTION 8. Snecial Taa Accountabilitv Measures. Pursuant to and in compliance with the provisions of Government Code Section�0075.1,this City Counci] hereby establishes the following accountability measures pertaining to the levy by the District ofthe special taxes described in Section 7 above: A. "I'he special tax shall be levied for the speciGc purposes set forth in Section 7 above. B. The proceeds of the levy of such special tax shall be applied only to the specific applicable purposes set forth in Section 7 above. C. The District shall establish a separate account into which the proceeds of such special tax shall be deposited. Resolution No. 2016-049 Pase No. � D. The Cirv Manaeer or his or her desienee. actine for and on behalf of the District.shall annualh� file a report ���ith the Cim Council as required pursuant to Govemment Code Section �007�.3. SECTIOI�' 9. Preoaration of Annual Ta�Roll. The name, address and telephone number of the office; department or bureau which will be responsible for preparine annualh• a current roll of speciai ta� le��� oblisations bv Assessors pazcel number and ���hich shall be responsible for estimatin2 future special ta� levies pursuant to Section�3340.1 ofthe Govemment Code ofthe State of Califomia. are as follo���s: Engineering Department Cirv of Chula Vista 276 Fourth A��enue Chula Vista. CA 92010 (619) 691-�021 SECTION 10. Election. This Cin�Council herewith submits the le���of the special ta�es to the qualified elector of the District. such elector being the lando«ner of the propem� ���ithin The District. ���ith such landoHmer having one (1) ��ote for each acre or portion thereof of land���hich he or she o�vns within the District. This City Council hereby further directs that the ballot proposition relatine to the le�y of the above referenced special taxes ���ithin The District be combined and consolidated ��ith the proposition set forth in Section 11 belo�v relating to the establishment of an appropriations limit for the District. The proposition related to the lew of the special taxes: together with a proposition to establish an appropriations limit for the District shall be submitted to the qualified elector of the District at a special election to be held on(a)March 1�;2016; immediately follo�i ing the adoption of this resolution or(b) such other date as the qualified elecror and the Cin�Clerk ma}�mutually aeree and such election shall be a special election to be conducted b��the Cih�Clerk(hereinafter referred to as the "Election Official"). [f the proposition for the le���of the special taxes recei�es the appro��al of more than t�i�o-thirds (2/3) of the votes cast on the proposition, the special ta� thereb}�approved ma�� be le��ied as provided for in this Resolution. SECTION 11. Ballot Propositions. The ballot proposals to be submitted to the qualified elector of the District at the election shall eenerallv be as Follo���s: PROPOSITION A Shall Communih� Facilities District No. 17-I (�4'estern Chula Vista DIF Financine Program) of the Cit�� of Chula Vista. Counn- of San Diego, State of California. subject to accountabilitv measures set forth in Califomia Go��emment Code Section �007�.1. le�� special tazes throughout such communit�� facilities district pursuant to Resolution No. 2016-049 Page No. 6 the method of apportioning the special tas set forth in Attachment A to this Officia] Ballot for the purpose of financing development impact fee obligations imposed by the City in connection with the approval of a development project to be developed on property located within the District. Such fees may include: (i)the Public Facilities Development [mpact Fee pursuant to Chula Vista Municipal Code section 3.50, et seq.; (ii) the Western Transportation Development Impacl Fee pursuant to CVMC section 3.55;et seq.;and(iii)the Parkland Acquisition&Development Fee pursuant to CVMC section 17.10, et seq. and the cost of administedng the levy and collection of the special taaes and the District? PROPOSITION B Shall an appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the Califomia Constitution, be established for Communiry Facilities District No. 17-I (Western Chula Vista DIF Financing Program)ofthe City of Chula Vista, County of San Diego, State of California in the amount of$25,000,000? SECTION 12. Vote. The appropriate mark placed in the voting squaze before the word "YES" shall be counted in favor ofthe adoption ofthe proposition,and the appropriate mark placed in the voting square before the��ord`NO"in the manner as authorized, shall be counted against the adoption of such proposition. SECTION 13. Election Procedure. The Election Official is hereby authorized to take any and all steps necessary for holding the above election. The Election Official shall perform and render all services and proceedings incidental to and connected with the conduct of the election, including but not limited to, the following: A. Prepare and fumish the necessary election supplies for the conduct of the election. B. Cause to be printed the requisite number of official ballots, tally sheets and other necessary forms. C. Furnish official ballots for the qualified elector of the District. D. Cause the official ballots to be presented to the qualified elector, as required by law. E. Receive the retums of the election and supplies. F. Sort and assemble the election material and supplies in preparation for the canvassing of the returns. G. Canvass the return of the election. H. Furnish a tabulation of Uie number of votes given in the election. Resolution 1Vo. 2016-049 Paee No. 7 1. Conduct and handle all other matters relatine to the proceedings and conduct of the election in the manner and form as required by la���. y SECTIOI�' 1�. Sun�ivaL If an��section, subsection,subdivision.sentence,clause,or phrase in this Resolution or an}�part thereof is for an}�reason held to be unconstitutional or im�alid.ineffecti��e by any court of competent jurisdiction such decision shall not affect the validit��or effectiveness of the remainin2 portions of this Resolution or anv part thereof. The Cin�Council hereb}�declares that it would have adopted each section irrespecti��e of the fact that an}� one or more subsections, subdi��isions, sentences, clauses; or phrases be declared unconstitutional, im alid, or ineffecti��e. SECTION 1�. Effective Date of Resolution. This Resolution shall become effecti��e immediatelv upon its adoption. Presented by Appro��ed as to form b�� /� � (/ - <�� `- .. " ` � Eric C. Crockett. Glen R. Goo ins� Director of Economic Development Ci . e}� Resolution No. 2016-049 Page No. 8 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California,this 15th day of Mazch 2016 by the following vote: AYES: Councilmembers: Aguilar, Bensoussan, McCann, and Salas NAYS: Councilmembers: None ABSENT: Councilmembers: None ABSTAIN: Councilmembers: Miesen „�,� M Salas, Mayor ATTEST: `�,��,� � Donna R. Norris, CMC; City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Donna R. Noms, City Clerk of Chula Vista, Califomia, do hereby certify that the foregoing Resolution No. 2016-049 was duly passed, approved, and adopted by the Ciry Council at a regulaz meeting of the Chula Vista City Council held on the 15th day of March 2016. Executed this 15th day of March 2016. Donna R. Norris, CMC, ity Clerk Resolution No. 2016-0�9 Paee No. 9 EXHIBIT A RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX Rate and 19ethod of Apportionment of Special Ta� Communih Facilities District V`o. 17-1 (��'cstern Chula �'ista DIF Financing) A Special Tax shall be levied on each Assessor's Pazcel ofTa�able Propem���thin the boundaries of Communin� Facilities District I�o. 17-I (Westem Chula Vista DIF Financing) of the Cih-of Chula Vista (the "City") and collected each Fiscal Year commencine in Special Ta� Commencement FY applicable ro such Assessor's Parcel,in an amount determined bv the CFD Administrator throueh the application of the procedures described below. All of the real propem�ti�ithin CFD No. 17-I.unless exempted by law or b�•the provisions hereof, shall be ta�ed for the purposes,to the extent,and in the manner herein pro��ided. 1. DEFI\ITIONS The terms hereinafrer set forth ha��e the follo�aina meanines: "Accrued Interest Obligation"means for each Assessor`s Pazcel,the amount of interest accrued on the Deferred D[F Oblieation from the date of the issuance or erant of a Certificate of Occupancy for such property as determined in accordance ���ith Section 3.D below. "Acre" or"Acreage"means the land area of an Assessor s Parcel as sho�m on an Assessor s Pazcel Map. or if the land azea is not sho�+m on an Assessor's Parcel A9ap. the land azea shoN�n on the applicable Final h4ap. An Acre means 43,�60 squaze feet of land. "AcP'means the Mello-Roos Community Facilities Act of]982, as amended, being Chapter 2.� of Part 1 of Division Z of Title � of the Go��emment Code of the State of California. "Aonual Special Tas" means the Special Tax actuallv levied in anv Fiscal Year on any Assessor's Parcel which is equal to the sum of the Annual Special Ta� for Facilities and the Annual Special Ta� for Accrued Interest in accordance ��•ith Section 3.E belo�v. "Aunual Special Tas for Facilities"means the amount of the Special Ta� levied on an Assessor's Parcel of Developed Propert}�in any Fiscal Year;commencing N�ith the Special Ta�Commencement FY, to satisfi�the repapment of the Deferred DIF Oblieation o��er the term of the Special Ta� as set forth in Section 7 determined in accordance ���ith Section 3.E belo�i� unless the Special Ta� Obligation is prepaid pursuant to the pro��isions of Section 6 thereto. "Aunual Special Tax for Accrued InteresY' means the amount le�ied on an Assessors Pazcel of Developed Propem� in any Fiscal Year, commencine �vith the Special Ta� Commencement FY, to satisfi-the repayment of the Accrued Interest Obligation o��er the term ofthe Special Ta�as set forth in Section 7 determined in accordance���ith Section 3.E below unless the Special Ta� Oblieation is prepaid pursuant to the pro��isions of Section 6 thereto.. "Aunual Special Tax for Current InteresY' means the amount le��ied on an Assessors Parcel of De�eloped Propem in am� Fiscal Year. commencin� ��ith the Special Ta� Commencement FY, to satisfi°the requirement to pay interest on unpaid deferred fees durine the 20-��ear repayment period commencine �+�ith the Special Ta� Commencement F1' and ending on June 30th ofthe Special Tas Final Year. Resolution No. 2016-049 Page No. 10 "Assessor" means the Assessor of the County of San Diego. "Assessor's Parcel" means a lot or parcel shown on an Assessor's Parcel Map with an assigned Assessor's Pazcel Number. "Assessor's Parcel Map"means an official map of the Assessor designating pazcels by Assessor's Parcel Number. "Assessor's Parcel Number" means the number assigned to an Assessor's Parcel by the Assessor for purposes of identification. "Assigned Special Tax Obligation" means for each Assessor's Parcel, the amount determined in accordance with Section 3.B below. "Building PermiY' means a building permit issued by the City for construction of a Residential Unit or Non-Residential Property ]ocated within CFD No. 17-I. `Building Square Footage"means all ofthe square footage of usable area within the perimeter ofa residential structure, not including any carpori, walkway, garage, overhang, or similar area. The determination of Building Square Footage shall be made by reference to the Building Permit(s) issued for such Assessor's Parcel and/or by reference to appropriate records kept by the City. "Certificate of Occupancy" means a certificate issued or approval granted by the City, or other applicable government entity, that authorizes the actual occupancy of a Residential Unit for habitation by one or more residents ar the occupancy of Non-Residential Property. "CFD Administrator" means an authorized representative of the City, or designee thereof, responsible for determining the Assigned Special Tax Obligation and the Annual Special Tax, for preparing the Annual Special Tax roll and/or calculating the Backup Special Ta�c. "CFD No. 17-I" means the City of Chula Vista Community Facilities District No. 17-I (Westem Chula Vista DIF Financing). "City" means the City of Chula Vista, California. "CouuciP'means the Ciry Council of the City acting as the legislative body of CFD No. 17-I under the Act. "County" means the County of San Diego, California. "Deferred DIF Obligatiod' means for each Assessor's Parcel, the remaining balance of DIFs that ha��e been deferred on such Assessor's Parcel since Building Permit issuance as determined in accordance with Section 3.0 below. "Developed Property" means for each Fisca] Year, all Taxable Property for which a Building Permit was issued prior to May 1 of the previous Fiscal Year. An Assessor's Parcel classified as Developed Property but for which the Building Permit that caused such Assessor's Parcel to be classified as De��eloped Property has been cancelled and/or voided prior to the Fiscal Yeaz for which Special Taxes are being levied shall be reclassified as Undeveloped Property. "DIF Deferral AgreemenY' means, as to an Assessor s Parcel, the Agreement for Deferral of Development Impact Fees by and between the owner of such Assessor's Parcel and the City. "DIF" or "DIFs" shall, as to an Assessor's Parcel, have the meaning given such terms in the DIF Deferral Agreement applicable to such Assessor's Parcel. "Effecti��e Date" shall mean, as to each DIF Deferral Agreement, the effective date of such agreement as specified therein. "Exempt Propert��"means for eadi Fiscal Year,all Assessor s Parcels designated as being exempt from Special Tases pursuant to Section 8 below. "Final Map" means a subdivision of property by recordation of a final map;parcel map, or lot line adjustment; pursuant to the Subdi��ision A4ap Act (California Government Code Section 66410 et Resolution I�'o. 2016-0�9 Paee No. 1 1 seq.) or recordation of a condominium plan pursuant to Califomia Civil Code 428> that creates indi��idual lots for which Buildins Permits mav be issued ���ithout further subdivision. "Fiscal 1'ear" means the period startine on Jul}� I and ending the follo�aine June 30. "Initial Interest Accrual Date"shall mean,as to anv Assessors Parcel oFDeveloped Propem�.the date on ��hich the Certificate of Occupanc}� for such Assessors Parce] is issued. "Initial Accrued Interest Obligation F1"' shall mean, as to anv Assessor`s Pazcel of Developed Propem�_ the Fiscal Yeaz in which the Initial Interest Accrual Date For such Assessor's Parcel falls. "A7asimum Special Ta� Obligatiod' means for each Assessor`s Pazcel. the amount assiened in accordance w�th Sections 3.A belo�a. "Non-Residential Propert��" means all Assessors Pazcels of Developed Propem� for ���hich a buildins permit has been issued for the purpose of constructins one or more non-residential structures or facilities. "Original Parcel" means an Assessors Pazcel «ithin the boundaries of CFD No. 17-I that was assiened a Ma�imum Special Ta� Oblieation and an Assiened Special Tax Obligation in the prior Fiscal Year but has been subsequently subdivided into Successor Parcels for the current Fiscal Year. "Prepa��me�t Amouut"means the amount required to prepay the Annual Special Ta�obligation in full for an Assessor's Pazcel as described in Section 6.A belo�i�. "Properh� O��•ner Association Properh�" means an}� Assessor's Parcel ���ithin the boundaries of CFD No. 17-I o«�ned in fee by a propem o��•ner association.includine any master or sub-association. "Public Properh�"means am�propem����ithin the boundaries of CFD No. U-I.���hich is otimed b��, or irrevocablv offered for dedication to the federal eo��emment. the State of California. the Counn�. the Cih�or any other public agency_ provided ho���e��er that an�� propem• ow�ed b}�a public aeenc�� and leased to a private entiri�and subject to taxation under Section �3340.1 of the Act shall be ta�ed and classified in accordance w�ith its use. "Residential Properh�" means all Assessor s Parcels of Developed Propem�for���hich a Building Permit has been issued for the purpose of constructing one or more Residential Units. "Resideutial Unit" means each sepazate residential d�relline unit that comprises an independent facilih� capable of con��e��ance or rental, separate from adjacent residential dwelling units. "Special Tas" means any special tas le��ied�ithin CFD No. 17-1 pursuant to the Act and this Rate and Method of Apportionment of Special Tax. "Special Tac Commencement F1'" shall mean, as to each Assessors Parcel dassified as De<<eloped Propem�. the Fiscal Year falline afrer the first day of the ele�enth calendar��ear after the Effective Date ofthe DIF Deferral Agreement applicable to such Assessors Parcel. "Special Tax Final FI"' shall mean.as to each Assessor's Parcel of De��eloped Propem�,the Fiscal Year commencing on July 1 of nineteenth (19th) Fiscal Yeaz followine the 3pecial Ta� - Commencement FY. � "Special Tax Obligatiod'means the total obligation ofan Assessor's Parcel ofDeveloped Propem� to pay the Special Ta� for the remainine term of the Special Ta� applicable to such Assessors Parcel. "Suceessor ParceP'means an Assessor s Parcel created b��the Subdi��ision of one or more Original Parcels pursuant to Section � belo�v. "State" means the State of Califomia. "Ta�able Properh�" means all of the Assessor's Parcels �vithin the boundaries of CFD \o. 17-1, ��=hich are not e�empt from the le���� of the Special Tas pursuant to la�v or Section 8 belo���. "Undeveloped Properh•" means, for each Fiscal Year. all Ta�able Propem not classified as Resolution No. 2016-049 Pa�e No. 12 Developed Property. 2. LANU USE CLASSIFICATION Each Fiscal Yeaz,beginning with Fiscal Year 2016-17,each Assessor s Parcel��ithin CFD No. 17-1 shall be classified as Taxable Property or Exempt Property. In addition, all Taxable Property shall further be classified as Developed Property or Undeveloped Property,and all such Taxable Property shall be subject to the le�ry of Special Taxes in accordance with this Rate and Method of Apportionment of Special Tax determined pursuant to Sections 3 and 4 below. 3. SPECIAL TAX RATES A. 11azimum Specia) Tas Obli�ation The Maximum Special Tax Obligation applicable to an Assessor's Parcel subject to a DIF Deferral Agzeement in the Initial Fiscal Yeaz applicable to such Assessor's Pazcel shall be determined pursuant to Table 1 below. Table 1 Initial Fiscal Year Maximum S ecial Tax Obli ation Maximum Assessor's Parcel No. Special Tax Obli ation 618-010-17 1,600,000 Commencing on July 1 of the Fiscal Year following the Initial Interest Accrual Date, the Maximum Special Tax Obligation for such Assessor's Parcel shall increase on July 1 of each Fiscal Yeaz by an amount equal to two percent (2%) of the Maximum Special Ta�c Obligation in effect for the prior Fiscal Yeaz. B. Assigned Special Taz Ohligation On July 1 of each Fiscal Year commencing the Special Tax Commencement FY, the CFD Administrator shall determine the Assigned Special Ta�c Obligation for that Fiscal Year. The Assigned Special Tax Obligation in any given Fiscal Year commencing the Specia] Tax Commencement FY shall be the sum of the Deferred DIF Obligation plus the Accrued Interest Obligation. If for any Fiscal Year the Assi�ned Special Tax Obligation is determined to be greater than the Maximum Special Tax Obligation, then the Assigned Special Tax Obligation shall be equal to the Maximum Special Tax Obligation. C. lleferred DIF Oblihxtion The Deferred DIF Obligation applicable to an Assessor's Parcel classified as Undeveloped Property shall be zero. The initial Deferred DIF Obligation applicable to an Assessor's Parcel classified as Developed Property shall be determined by the CFD Administrator at the time of issuance of a Building Permit for such Assessors Parcel. The Deferred DIF Obligation shall be equal to the sum of the applicable DIFs specified in the DIF Deferral Agreement for each Building Permit issued for Assessor's Parcels within CFD No. 17-1. The amount ofeach DIF included in the DIF Fee Obligation for an Assessors Parcel shall be based on the fee schedule applicable to such DIF in effect at the time of issuance of such Building Permit. The Deferred DIF Obligation in an�� Fiscal Year applicable to an Assessors Parcel of De��eloped Propert}� shall be equal to the Deferred DIF Obligation in the prior Fiscal Year less any Annual Special Tax for�Facilities payments made in the priar Fiscal Year. Resolution No. 2016-049 Paee No. 13 If a partial prepa}�ment is made pursuant to Section 6.B belo���.the Deferred DIF Oblieation will also be reduced by the applicable amount of the Deferred DIF Obligation that N�as prepaid. U. Accrued Interest Ohligation The Accrued Interest Obli�ation in the Initial Fiscal Yeaz applicable to an Assessor s Parcel dassified as Developed Propem for ��-hich a Certificate of Occupanc��has not been issued prior to Jul�� 1 of such Fiscal Yeaz shall be zero. The Accrued Interest Oblieation applicable to anv Assessor s Pazcel classified as Developed Property shall commence to accrue on the Initial Interest Accrual Date. The Accrued Interest Oblieation applicable to such Assessor`s Parcel in the [nitial Accrued Interest Obligation FY shall be equal to t��o percent(2%)of the Deferred DIF Oblieation as of Jul�� 1 of such Fiscal Yeaz multiplied by a fraction the numerator of���hich is the number of calendar da��s from and includina the Initial Interest Accrual Date to and indudin�June 30th of such Fiscal l'ear and the denominator of���hich is 36�. The Accrued Interest Obligation for each subsequent Fiscal Year prior to the Special Tav Commencement FY shall be equal to the Accrued Interest Obligation in the prior Fiscal Year plus two percent (2%) of the Deferred DIF Obligation as of July 1 of the prior Fiscal Year. The Accrued Interest Obligation in the Special Ta�Commencement FY and each subsequent Fiscal Yeaz applicable to an Assessor's Parcel classified as De��eloped Propertv shall be equal to the Accrued Interest Obligation as of July 1 of the prior Fiscal Yeaz less any Annual Special Tax for Accrued Interest payments made in the prior Fiscal Yeaz. Ifa partial prepa��nent is made pursuant to Section 6.B belo�i�; the Deferred DIF Obligation ���ill also be reduced by the applicable amount of the Acerued [nterest Obligation that was prepaid. E. Annual Special Tax The Annual Special Tas for Developed Property in any Fiscal Year commencing the Special Ta� Commencement FY shall be equal to (i) the Annual Special Ta� for Facilities plus (ii) the Annual Special Ta� for Accrued Interest plus (iii) the Annual Special Tax for Current Interest. The Annual Special Tax for Facilities in an�� Fiscal Year commencine the Special Ta�: Commencement FY shall be equal to the Deferred D[F Obligation on July 1 of the Special Ta� Commencement FY times the Repa}�ment Rate in Table 2 belo�v that corresponds�vith such Fiscal Year. In each subsequent Fiscal Year, the Annual Special Ta� for Facilities��ill remain unchanged until the Deferred DIF Obligation is paid in full. 'Ihe Annual Special Tax for Accrued Interest in any Fiscal Year commencine the Special Tax Commencement FY shall be equal to the Accrued [nterest Obligation on Jul�� 1 ofthe Special Tak Commencement FY times the Repa}�ment Rate in Tab1e 2 below that corresponds���ith such Fiscal Year. [n each subsequent Fiscal Year, the Annual Special Ta� for Accrued [nterest will remain unchan�ed umil the Accrued Interest Obligation is paid in full. The Annual Special Tas for Current Interest in am�Fiscal Year commencin�the Special Ta� Commencement FY shall be equal to the Deferred DIF Oblieation on Juh�l of such Fiscal Year times the Current Interest Rate in Table 2 belo���that corresponds���ith such Fiscal Year. Resolution No. 2016-049 Page No. 14 Table 2 Amortization Table Fiscal Year Repayment Rate Current Interest Rate Initial Accrued ]nterest Obligation FY through the Fiscal Year 0% 0% preceding the Special Tak Commencement FY Special Tax Commencement FY through the Special Ta�c 5% 2% Final FY 4. METHOD OF APPORTIONAIEN"C Commencing with the Special Tax Commencement FY and for each following Fiscal Yeaz,the CFD Administrator shall apportion the Assigned Special Tax Obligation as set forth below. First: All Original Parcels that are reflected on the Assessor's Parcel Maps applicable to the current Fiscal Year ti�ill be assigned a Maximum Special Tax Obligation and Assigned Special Tvc Obligation in accordance with Section 3 above. Second: All Original Parcels that are not reflected on the Assessors Parcel Maps applicable to the current Fiscal Year will be assigned a Maximum Special Tax Obligation and Assigned Special Tax Obligation in accordance with Section 3 above as if such parcels still existed in their previous form. Third: The Ma�cimum Special Tax Obligation and Assigned Special Tax Obligation that were calculated in the Second step above will be assigned to each applicable Successor Parcel based on the amount of Taxable Acreage contained in such Successor Parcel divided by the amount of Taxable Acreage contained in the relevant Original Parcel. The sum of the Maximum Special Tax Obligations of each group of Successor Parcels shall be equal to Maximum Special Tax Obligation of the applicable Original Parcel that was determined in the Second step. Likewise, the sum of the Assigned Special Tax Obligations of each group of Successor Parcels shall be equal to Assigned Special Tax Obligation of the applicable Original Parcel that was determined in the Second step. Fourth: The Special Tax shall be levied on each Assessor's Parcel of Developed Property at 100%of the applicable Annual Special Tax. Successor Pazcels that aze assigned a Maximum Special Tax Obligation and an Assigned Special TaY Obligation in the current Fiscal Year will be considered Original Parcels in the following Fiscal Year. Notwithstanding the above, under no circumstances will the Special Tax levied in any Fiscal Year against any Assessor's Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased as a result of a delinquency or default in the payment of the Special Tax applicable to any other Assessor's Parcel within CFD No. 17-I by more than ten percent (10%)above what would l�ave been ]evied i»the absence of such delinquencies or defaults. �. COLLECTION OF SPECIAL TAXES Collection ofthe Annual Special Tax shall be made by the Counry in the same manner as ordinary ad valorem property ta�es are collected and the Annual Special Tax shall be subject to the same penalties and the same lien priority in the case of delinquency as ad valorem taaes; provided, Resolution No. 2016-0�9 Paee Ivo. 1� howe��er, that the Council ma��pro��ide for(i) other means of collectine the Special Tax, includin2 direct billings thereof to the properh� oN�ners; and (ii) judicial foreclosure of delinquent Annual Special Taaes. 6. PREPAYn1E\T OF SPECIAL TAX OBLIGATION A. Prepacment in Full Propem� o��ners ma}� prepa�°and permanenth satisfi� the Special Ta� Oblieation b��a cash settlement «•ith the City as permitted under Government Code Section �3344. The Special Ta� Obligation applicable to an Assessors Pazcel of De��eloped Propem�. or Unde��eloped Propem�for��-hich a Buildine Permit has been issued ma��be prepaid and the obligation to pa}� the Special Ta� for such Assessors Pazcel permanentiv satisfied as described herein, pro��ided that a prepa��rnent may be made with respect to a panicular Assessor's Pazcel only if there are no delinquent Special Taxes ���ith respect to such Assessor s Parcei at the time of prepa��ment. An o�mer of an Assessor`s Parcel eligible to prepay the Special Tar Obligation shall pro��ide the CFD Administrator with written notice of intent to prepa��,and designate or identify the company or asenc��that���ill be actine as the escro���agent, ifam�. The CFD Administrator shal] pro��ide the o��ner���ith a statement ofthe Prepayment Amount for such Assessors Parcel within thirn� (30) days of the request, and mav charge a reasonable fee for providine this service. The Prepa��ment Amount (defined below) shall be calculated for each applicable Assessors Pazcel or group of Assessors Parcels as summarized below(capitalized terms as defined below): Deferred DIF Oblieation plus Accrued Interest Oblieation plus Prepa}�nent Administrati��e Fees and Expenses Total: equals Prepayment Amount As of the proposed date of prepa}�ment, the Prepayment Amount (defined in Step 14 below) shall be calculated as follows: Step No.: 1. Confirm that no Special Ta� delinquencies apply to such Assessor`s Parcel. 2. For Assessors Parcels of De�eloped Propem�, determine the Deferred D[F Obligation and the Accrued Interest Obligation. For Assessors Parcels of Unde��eloped Propem� for�vhich a Buildine Permit has been issued, compute the Deferred DIF Obligation for that Assessor's Pazcel as though it was already desienated as Developed Propem, based upon the Building Permit which has alreadti� been issued for that Assessor's Pazcel. 3. Calculate the administrative fees and espenses of CFD I�'o. 17-I, includine the costs of computation of the prepayment, the costs to im�est the prepa��ment proceeds, the costs of redeeming CFD No. 17-I, and the costs of recording anv notices to e��idence the prepa}Rnent and the redemption (the "Prepa��ment Administrative Fees '). 4. The amount to prepay the Special Tax Obligation is equal to the sum of the amounts computed pursuant to paraeraphs l. 2 and 3 (the "Prepayment Amount"). Resolution No. 2016-049 Page No. 16 5. The Prepayment Amount shall be deposited into the Construction Fund. The amount computed pursuant to paragraph 3 shal] be retained by CFD No. 17-I. The CFD Administrator will confirm that all previously levied Special Taxes have been paid in full. With respect to any Assessor's Parcel for which the Special Tax Obligation.is prepaid in full, once the CFD Administrator has confirmed that all previously levied Special Taxes have been paid, the Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of the Special Tai and the release ofthe Special Tax lien on such Assessors Parcel;and the obligation of the owmer of such Assessor's Parcel to pay the Special Taac shall cease. I3. Partial Prepayment The Special Tax on an Assessor's Parcel of Developed Property or Undeveloped Property for which a building permit has been issued may be partially prepaid. The amount of the prepayment shall be calculated as in Section 6.A, except that a partial prepayment shall be calculated accordine to the folloN�ing formula: PP = (PE-A) x F+A These terms have the following meaning: PP = the partial prepayment PE=the Prepayment Amount calculated according to Section 6.A F =the percentage by which the owner of the Assessor's Parcel(s) is partially prepaying the Special Tax Obligation A = the Prepayment Administrative Fees and Expenses from Section 6.A The owner of any Assessor's Parcel who desires such partial prepayment shall notify the CFD Administrator of(i)such owner's intent to partially prepay the Special Tax Obligation, (ii) the percentage by which the Special Tax Obligation shall be prepaid, and (iii) the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepa}�nent of the Special Tax Obligation for an Assessors Parce] within sixty(60)days ofthe request and may charge a reasonable fee for providing this service. With respect to any Assessor's Parcel that is partially prepaid,the City shall (i)distribute the funds remitted to it according to Section 6.A.,and(ii)indicate in the records of CFD No. 17- I that there has been a partial prepayment of the Special Tax Obligation and that the remaining Special TaY Obligation of such Assessor's Pazcel, equal to the outstanding percentage (1.00 - F) of the Deferred DIF Obligation and the Accrued ]nterest Obligation, shall continue to be levied on such Assessor's Parce] in the same manner as before the Partial Prepayment. 7. TERM OF SPECIAL TAX The Special Tax shall be levied as long as necessary to satisfy the Assigned Special Tax Obligation for a period not to exceed thirty (.i0) Fiscal Years commencing with Special Tax Commencement FY, provided however that the Special Tax will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined that all CFD No. 17-1 obligations have been satisfied. 8. EXEMPTIONS The CFD Administrator shall classify as Esempt Property(i)Assessor`s Parcels ofPublic Property, (ii)Assessor's Parcels of Property O�i�ner Association Property, or(iii)Assessor's Parcels N�hich are used as places of��-orship and are eaempt from ad valorem property taxes because they are o�med b�� Resolution No. 2016-049 Paee No. 17 a religious organization, (i��)Assessor s Parcels���ith public or utiliri�easements making impractical their utilization for other than the purposes set forth in the easement, and (v) Assessors Parcels of De��eloped Property classified as I�'on-Residential Propem� as determined reasonabl�� by the CFD Administrator. If the use of an Assessor's Pazcel of Exempt Propem� changes so that such Assessor`s Parcel is no longer classified as one of the uses set forth in the f rst pazagraph of Section 8 abo��e that «ould mal:e such Assessor`s Parcel elieible to be classified as Exempt Propem, such Assessor`s Pazcel shall cease to be classified as Exempt Propem� and shall be deemed to be Ta�able Propem. 9. APPEALS Any landoNmer who pays the Special Tax and claims the amount of the Special Ta� levied on his or her Assessor s Parcel is in error shall first consult with the CFD Administrator reeazdin�such error not later than thim�-si� (36)months afier first having paid the first installment ofthe Special Tal that is disputed. If follo�vine such consultation the CFD Administrator determines that an error has occurred. then the CFD Administrator shall take any of the folloH�ing actions, in order of priority,in orderto correctthe error: (i) Amend the Special Ta� le���on the lando��mer s Assessor's Parcel(s) for the current Fiscal Yeaz prior to the payment date, (ii) Require the CFD to reimburse the lando���ner for the amount of the overpa}�ment to the eztent of a��ailable CFD funds. or (iii) Grant a credit asainst; eliminate or reduce the future Special Ta�es on the lando��ners Assessors Parcel(s) in the amount of the overpayment. If following such consultation and action by the CFD Administrator the lando�rer believes such error still e�:ists. such person ma�� file a ���ritten notice of appeal �vith the Ciri- Council. Upon the receipt of such notice, the Cit�� Council or designee ma�� establish such procedures as deemed necessarv to undertake the revie« of an}�such appeaL If the Cin�Council or desienee determines an error still e�ists; the CFD Administrator shall take anv of the actions described as (i); (ii) and (iii) above, in order of priority, in order to correct the error. The Cin� Council or desianee thereof shall interpret this Rate and ?�4ethod of Apportionment of Special Ta� for purposes�of clarifyine an} ambiguities and mal:e determinations relati��e to the administration of the Special Ta� and anti� lando��mer appeals. The decision of the City Council or desienee shall be final.