HomeMy WebLinkAboutOrd 2016-3365 ORDII�'AI�'CE NO. 336�
ORDI?�'ANCE OF THE CITI' OF CHULA VISTA ACTII�'G AS
THE LEGISLATIVE BODY OF COMMUT'ITY FACILITIES
DISTRICT N0. 17-I (�'ESTERN CHULA VISTA DIF
FINANCII�'G PROGRAM) AUTHORIZING THE LEVY OF A
SPECIAL TAX II`' SUCH COn4MUI�'ITY FACILITIES
DISTRICT
Vl'HEREAS, the City Council of the City of Chula Vista, Califomia (the ��City Council"),
has initiated proceedines, held a public hearine, conducted an election and recei��ed a favorable
vote from the qualified electors authorizine the le��y of special taaes in a community facilities
district, all as authorized pursuant to the terms and pro��isions of the "Mello-Roos Communirv
Facilities Act of 1982`-. being Chapter 2.�, Part 1. Division 2, Title � of the Go��emment Code of
the State of Califomia (the "Act") and the Cit�� of Chula Vista Communit�� Facilities District
Ordinance enacted pursuant to the po�+�ers resen�ed b�� the Cin� of Chula Vista under Sections 3,
� and 7 of Artide XI of the Constitution of the Siate of California (the "Ordinance-`) (the Act and
the Ordinance ma}� be referred to coilectively as the "Communiri� Facilities District Lati�"). This
Community Facilities District is designated as COMMLJNITY FACILITIES DISTRICT NO. 17-
I (A'estem Chula Vista DIF Financing Proeram) (the "Districr`).
NOW; THEREFORE. the Cih� Council of the Cin of Chula Vista, California, actine as
the leeislative body of Communitv Facilities District No. 17-I (Westem Chula Vista DIF
Financing Program), does hereby ordain as follo�vs:
SECT[ON 1. Authorization of Levv of Special Tahes. This Cit}� Council does; b�� the
passa2e of this ordinance, authorize the 1e�7- of special taaes on ta�able properties located in the
District pursuant to the Rate and A9ethod of Apportionment of Special Tases as set fonh in
Exhibit "A" attached hereto and incorporated herein by this reference (the "Rate and Method").
SECTION 2. Authorization to Annuall�- Determine the Special Tax. This Cih� Council,
actins as the leQislative body of the District; is herebv further authorized, by Resolution, to
annually determine the specia] tax to be le��ied within the District for the then current tax yeaz or
fumre ta� vears; provided, howe��er, the special ta� to be ]evied shall not exceed the maximum
special tat authorized to be le��ied pursuant to the Rate and h4ethod.
SECTION 3. Collection of Special Taxes. The special ta�es herein authorized to be
levied; to the e�tent possible, shall be collected in the same manner as ad ��alorem propert�� ta�es
and shall be subject to the same penalties; procedure, sale and lien priorit�� in any case of
delinquency as applicable for ad valorem tases; pro��ided, hoH�ever; the District may utilize a
direct billing procedure for any special taxes that cannot be collected on the County tax roll or
ma��, bv resolution, elect to collect the special ta�es at a different time or in a different manner if
necessan� to meet its financial oblieations.
Ordinance No. 3365
Page No. 2
SECTION 4. Special Ta�c Lien. The special taxes authorized to be levied shall be
secured by the lien imposed pursuant to Sections 3114.5 and 3115.5 of the Streets and Highways
Code of the State of Califomia, which lien shall be a continuing lien and shall secure each levy
of the special tax. The lien of the specia] tax shall continue in force and effect until the special
tas obligation is prepaid, permanently satisfied and canceled in accordance with Section 53344
of the Government Code of the State of California or until the special tax ceases to be levied by
the City Council in the manner provided in Section 533.i0.5 of said Govemment Code.
SECTION �. This Ordinance shal] be effective thirty (30) days afrer its adoption.
Within fifteen (15) days afrer its adoption, the City Clerk shall certify to the passage and
adoption of this Ordinance and cause this Ordinance to be published or posted pursuant to the
provisions of Chula Vista's City Charter, Section 312(b).
Presented b�� Approved as to form by
/ �� �—` .
` / � _
Eric C. Crockett len R�Googins
Director of Economic Development it A ey
Ordinance No. 336�
Paee No. 3
PASSED. APPROVED. and ADOPTED bv the Ciri- Council of the Citv of Chula Vista
Califomia� this 22nd da�� of Mazch 2016. bv the followina ��ote:
AYES: Councilmembers: Aauilaz. Bensoussan. and McCann
NAYS: Councilmembers: None
ABSENT: Councilmembers: Salas
ABSTAII`': Councilmembers: Miesen
�
Marv S� las. Mavor
ATTEST:
Donna R. Norris. M . Citv Clerk
STATE OF CALIFORi\'IA )
COUI�'TY OF SAN DIEGO )
CITY OF CHULA VISTA )
I; Donna R. Norris; Cit�� Clerk of Chula Vista. Califomia. do herebvi certifi� that the foregoine
Ordinance No. 336� had its first readina at a reeular meetine held on the 1�th dav of March 2016
and its second readine and adoption at a reeular meetine of said Cin� Council held on the 22nd
da}� of March 2016; and ti�as dulv published in summarv form in accordance ti�ith the
requirements of state la�� and the Cih� Charter.
i ,��,,.��. � , ,,/�, �.�.�.
Dat d Donna R. I�TOms. CMC. C�ri Clerk
Ordinance No. 3365
Page No. 4
EXHIBIT A
RATE AND METHOD OF APPORTIONMENT FOR
CITY OF CHULA VISTA
COMMUNITY FACILITIES DISTRICT NO. 17-1
(WESTERN CHULA VISTA DIF FINANCING PROGRAM)
Rate and Alethod of
Apportionment of Special Tax
Communiri- Facilitics District No. 17-1
� (��'estern Chula Vista DIF Financi��g)
A Special Tax shall be levied on each Assessor's Parcel of Taxable Property within the
boundaries of Communiry Facilities District No. 17-I (Western Chula Vista DIF Financing) of
the City of Chula Vista (the "City") and collected each Fiscal Year commencing in Special Taz
Commencement FY applicable to such Assessor's Parcel, in an amount determined by the CFD
Administrator through the application of the procedures described below. All of the real property
within CFD No. 17-I, unless exempted by law or by the provisions hereof, shall be ta�ced for the
purposes, to the extent, and in the manner herein provided.
1. DEFINITIONS
The terms hereinafrer set forth have the following meanings:
"Accrued Interest Obligatiod' means for each Assessor's Pazcel, the amount of interest
accrued on the Deferred DIF Obligation from the date of the issuance or grant of a Certificate of
Occupancy for such propeRy as determined in accordance with Section 3.D below.
"Acre" or "Acreage" means the land area of an Assessors Parcel as shown on an Assessor's
Parcel Map; or if the land area is not shown on an Assessor's Parcel Map, the land area sho�m on
the applicable Final Map. An Acre means 43,560 square feet of land.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5
of Part 1 of Division 2 of Title 5 of the Govemment Code oPthe State of California.
"Annual Special Tax" means the Special Tax actually levied in any Fiscal Year on any
Assessor`s Parcel which is equal to the sum of the Annual Special Tax for Facilities and the
Annual Special Tax for Accrued Interest in accordance ��ith Section 3.E below.
"Annual Special Tax for Facilities" means the amount of the Special Tax levied on an
Assessors Parcel of Developed Property in any Fiscal Year, commencing with the Special Tax
Coinmencement FY, to satisfy the repayment of the Deferred DIF Obligation over the term of
the Special Tax as set forth in Section 7 determined in accordance with Section 3.E below unless
the Special Taa Obligation is prepaid pursuant to the provisions of Section 6 thereto.
"Annual Special Tas for Accrued Interest° means the amount levied on an Assessor`s Parcel
of Developed Property in an}� Fiscal Year. commencing �aith the Special Taz Commencement
FY. to satisfy the repayment of the Acerued Interest Obligatio�� over the term of the Special Tax
Ordinance No. 336�
Pase I�'o. �
as set forth in Section 7 determined in accordance N�ith Section 3.E below unless the Special Taa
Obligation is prepaid pursuant to the pro��isions of Section 6 thereto..
"Annual Special Tax for Current IuteresY' means the amount le�ied on an Assessor's Pazcel
of Developed Propert}� in an�� Fiscal Year, commencine ���ith the Special Ta� Commencement
FY, to satisfy the requirement to pay interest on unpaid deferred fees durine the 20-vear
repayment period commencine ti�ith the Special Tax Commencement FY and ending on June
30th of the Special Tak Final 1'eaz.
"Assessor" means the Assessor of the Count�- of San Dieeo.
"Assessor's Parcel" means a lot or parcel sho�ti�n on an Assessor's Pazcel Map Hith an assiened
Assessor's Parcel Number.
"Assessor's Parcel A7ap" means an official map of the Assessor designating parcels bv
Assessor's Pazcel 1�'umber.
"Assessor's Parcel Number" means the number assigned to an Assessor's Pazcel b}� the
Assessor for purposes of identification.
"Assigned Special Tax Obligation" means for each Assessor's Pazcel. the amount determined
in accordance �i�ith Section 3.B belo���.
`Building Permit" means a buildine permit issued by the Cit�� for construction of a Residential
Unit or Non-Residential Propert}� located ���ithin CFD I�TO. 17-I.
"Building Square Footage" means all of the square footaee of usable area �aithin the perimeter
of a residential structure, not includina any carport, �valkwa}�, garaee; o��erhang. or similaz azea.
The determination of Building Square Footage shall be made b�� reference to the Buildine
Permit(s) issued for such Assessor`s Parcel and/or b�� reference to appropriate records kept b��the
Citv.
"CertiTicate of Occupanc��" means a certificate issued or appro��al granted by the City; or other
applicable eovemment entity, that authorizes the acrual occupancy of a Residential Unit for
habitation bv one or more residents or the occupanc}� of Non-Residential Propert}�.
"CFD Administrator" means an authorized representative of the Citv, or designee thereof
responsible for determinine the Assiened Special Ta� Obligation and the Annual Special Tal,
for preparing the Annual Special Tax roll and/or calculating the Backup Special Taa.
"CFD No. 17-I" means the Cin� of Chula Vista Communit}� Facilities District No. 17-I (Westem
Chula Vista DIF Financine).
"Cih�" means the Cit�� of Chula Vista. California.
"Council" means the Cih� Council of the Citv actine as the leeislati��e bodv of CFD No. 17-1
underthe Act y
"Counh" means the Countv of San Dieeo. California.
"Deferred DIF Obligation" means for each Assessor's ParceL the remaining balance oF DIFs
that ha��e been deferred on sUCh Assessor`s Pazcel since Buildine Permit issuance as determined
in accordance �vith Section 3.0 belo���. y
"Developed Properh�" means for each Fiscal Year, all Tasable Propem for �rhich a Building
Permit was issued prior to �9a� 1 of the previous Fiscal 1'ear. An Assessors Parcel classified as
Ordinance No. 336�
Page No. 6
Developed Propert�� but for ��hich the Building Permit that caused such Assessor's Parcel to be
classified as De��eloped Property has been cancelled and/or voided priar to the Fiscal Year for
which Special Taaes are being levied shall be reclassified as Undeveloped Property.
"DIF Deferral Agreement" 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 Assessors Parcel.
"Effective Date" shall mean; as to each DIF Deferral Agreement, the effective date of such
agreement as specified therein.
"Exempt Property" means for each Fiscal Year, all Assessor's Parcels designated as being
exempt from Special Taxes pursuant to Section 8 below.
"Final Map" means a subdivision of property by recordation of a final map, pazcel map, or lot
line adjustment, pursuant to the Subdivision Map Act (California Government Code
Section 66410 et seq.) or recordation of�a condominium plan pursuant to Califomia Civil
Code 4285 that creates individual lots for which Building Permits may be issued without further �
subdivision.
"Fiscal Year" means the period starting on July 1 and ending the following June 30.
"Initial Interest Accrual Date" shall mean, as to any Assessor's Parcel of Developed Property,
the date on which the Certificate of Occupancy for such Assessor's Parcel is issued.
"Initial Accrued Interest Obligation FY" shall mean, as to any Assessor's Parcel of Developed
Property, the Fiscal Year in ��hich the Initial Interest Accrual Date for such Assessors Parcel
falls.
"Maximum Special Tax Obligation" means for each Assessor's Parcel, the amount assigned in
accordance with Sections 3.A below.
"Non-Residential Properh�" means all Assessors Parcels of Developed Property for which a
building permit has been issued for the purpose of constructing one or more non-residential
structures or facilities.
"Original Parcel" means an Assessor's Parcel within the boundazies of CFD No. 17-I that was
assigned a Maximum Special Tax Obligation and an Assibned Special Tax Obligation in the
prior Fiscal Year but has been subsequently subdivided into Successor Parcels for the current .
Fiscal Year.
"Prepayment Amount" means the amount required to prepay the Annual Special Tax
obligation in full for an Assessor's Parcel as described in Section 6.A below.
"Property Owner Association Property" means any Assessor's Parcel within the boundaries
of CFD No. 17-1 o��ned in fee by a property owner association, including any master or sub-
association.
"Public Propert��" means any property within tl�e boundaries of CFD No. 17-1, which is owned
by; or irrevocably offered for dedication to the federal govercunent, the State of California, the
County, the Cit�� or any other public agency; provided howe��er that any property owned b�� a
Ordinance No. 336�
Pase No. 7
public agenc}� and leased to a private entiri� and subject to taxation under Section �3340.1 of the
Act shall be taxed and dassified in accordance with its use.
"Residential Properh�" means all Assessor's Pazcels of De��eloped Propem� for which a
Buildins Permit has been issued for the purpose of constructing one or more Residential Units.
"Residential UniP' means each separate residential d���elline unit that comprises an independent
facilit�� capable of conveyance or rental, separate from adjacent residential d�velline units.
"Special Tax" means any special tax levied ��Tithin CFD No. 17-I pursuant to the Act and this
Rate and Method of Apponionment of Special Taz.
"Special Tax Commencement Fl"' shall mean, as to each Assessor`s Parcel dassified as
Developed Propem. the Fiscal Yeaz falling afrer the first da�� of the eleventh calendar veaz after
the Effective Date ofthe D[F Deferral Agreement applicable to such Assessors Parcel.
"Special Taz Final Fl"' shall mean_ as to each Assessor`s Parcel of Developed Propem�, the
Fiscal Year commencine on Jul�� 1 of nineteenth (19th) Fiscal Yeaz fo1loH�ing the Special Ta�
Commencement FY.
"Special Taz Obligation" means the total obligation of an Assessors Pazcel of Developed
Propem� to pa�� the Special Ta� for the remainine term of the Special Tax applicable to such
Assessors Parcel.
"Successor ParceP' means an Assessors Parcel created by the Subdivision of one or more
Orieinal Parcels pursuant to Section 4 below.
"State" means the State of California.
"Tasable Properts-" means all of the Assessor's Pazcels ���ithin the boundaries of CFD No. 17-I,
which aze not e�empt from the le��� of the Special Ta� pursuant to la«�or Section 8 below.
"Unde��eloped Propertrt�" means, for each Fiscal Year. all Taxable Property not classified as
Developed Propem�.
2. LA\�D USE CLASSIFICATION
Each Fiscal Yeaz. beeinnina �ti�ith Fiscal Year 2016-17, each Assessors Parcel H�ithin CFD No.
17-I shall be classified as Taxable Property or Exempt Property. In addition, all Ta�able Propert}�
shall further be dassified as Developed Propem or Unde��eloped Propem�_ and all such Taiable
Property shall be subject to the lev�� of Special Taaes in accordance ���ith this Rate and Method of
Apportionment of Special Tax determined pursuant to Sections 3 and 4 beloH�.
3. SPEC[AL T:1X RATES
A. �Ia�imuin Special Tas Obligation
The Maximum Special Ta� Obligation applicable to an Assessor's Parcel subject to a DIF
Deferral Agreement in the Initial Fiscal Year applicable to such Assessor`s Parcel shall
be determined pursuant to Table 1 belo�+�.
Ordinance No. 3365
Page No. 8
Table 1
Initial Fiscal Year Maximum S ecial Taz 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
Maaimum Special T� Obligation for such Assessor's Parcel shall increase on July 1 of
each Fiscal Year by an amount equal to two percent (2%) of the Maximum Special Tax
Obligation in effect for the prior Fisca] Year.
I3. Assi�ncd Spccial Ta� Obligafion
On July 1 of each Fiscal Year commencing the Special Tax Commencement FY, the
CFD Administrator shall determine the Assigned Special Tax Obligation for that Fiscal
Year.
The Assigned Special Tax Obligation in any given Fiscal Year commencing the Special
Tax Commencement FY shall be the sum of the Deferred DIF Obligation plus the
Accrued Interest Obligation. If for any Fiscal Year the Assigned 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. Deferred DIF Oblication
The Deferred DIF Obligarion 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 detern�ined by the CFD Administrator at the time of
issuance of a Building Permit for such Assessor's 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. l7-]. The amount
of each DIF included in the DIF Fee Obli�ation for an Assessor's 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 any Fiscal Year applicable to an Assessor's Parcel of
Developed Property shall be equal to the Deferred DIF Obligation in the prior Fiscal Year
less any Annua] Special Tax for Facilities payments made in the prior Fiscal Year.
If a partia] prepayment is made pursuant to Section 6.B below,- the Deferred DIF
Obligation will also be reduced by the applicable amount of the Deferred DIF Obligation
that �vas prepaid.
D. _accrucd Intcrest Oblination
Ordinance No. 336�
Page No. 9
The Accrued Interest Oblieation in the Initial Fiscal Yeaz applicable to an Assessor's
Pazcel classified as Developed Propert}� for ti�hich a Certificate of Occupanc}� has not
been issued prior to Jul�- 1 of such Fiscal Year shall be zero.
The Accrued Interest Obli�ation applicable to an�� Assessor`s Pazcel classified as
Developed Property shall commence to accrue on the Initial Interest Accrual Date. The
Accrued Interest Obligation applicable to such Assessors Parcel in the Initial Accrued
Interest Oblieation FY shall be equal to two percent (2%) of the Deferred DIF Oblieation
as of Juh= 1 of such Fiscal 1'eaz multiplied b}� a fraction the numerator of���hich is the
number of calendaz da��s from and includine the Initial Interest Accrual Date to and
including June 30th of such Fiscal Yeaz and the denominator of ���hich is 365. The
Accrued Interest Oblieation for each subsequent Fiscal 1'ear prior to the Special Tax
Commencement FY shall be equal to the Accrued Interest Oblieation in the prior Fiscal
Yeaz plus n�-o percent (2%) of the Deferred DIF Obligation as of Jul�� 1 of the prior
Fiscal Year.
The Accrued Interest Oblieation in the Special Ta� Commencement FY and each
subsequent Fiscal Year applicable to an Assessors Parcel classified as Developed
Propert�� shall be equal to the Accrued Interest Obligation as of Juh� 1 of the prior Fiscal
Year less an}� Annual Speciai Tax for Accrued Interest pa}�ments made in the prior Fiscal
Year.
If a partial prepa}�ment is made pursuant to Section 6.B belo«�, the Deferred DIF
Oblieation �vill also be reduced bv the applicable amount of the Accrued Interest
Obligation that «�as prepaid.
E. Annual Spccial Tac
The Annual Special Tax for Developed Propem in anv Fiscal Yeaz commencing the
Special Tat Commencement FY shall be equal to (i) the Annual Special Ta� for
Facilities plus (ii) the Annual Special Tat 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 Tax
Commencement FY shall be equal to the Deferred DIF Oblieation on Jul�� 1 of the
Special Tat Commencement FY times the Repa��ment Rateyin Table 2 belo��� that
corresponds ���ith such Fiscal Year. In each subsequent Fiscal Year, the rinnual Special
Ta� for Facilities will remain unchanged until the Deferred DIF Obligation is paid in full.
The Annual Special Tax for Accrued ]nterest in any Fiscal Year commencine the Special
Tak Commencement FY shall be equal to the Accrued Interest Oblieation on Juh� 1 of
the Special Ta� Commencement FY times the Repa��ment Rate in Table 2 below� that
corresponds ���i[h such Fiscal Year. [n each subsequent Fiscal Year, the Annual Special
Tas for Accrued Interest �rill remain unchaneed until the Accrued Interest Obliaation is
paid in full. y V
The Annuai Special Ta� for Current Interest in am� Fiscal 1'ear commencine the Special
Ta� Commencement F1' shall be equal to the Deferred DIF Obligation on July 1 of such
Fiscal 1'ear times the Current Interest Rate in Table 2 belo�� that corresponds �vith such
Fiscal Yeaz.
Ordinance No. 3365
Pa�e No. 10
Table 2
Amortization Table
Fiscal Year Repayment Rate Current
Interest Rate
Initial Accrued Interest
Oblieation FY
through the Fiscal Year 0% 0%
. preceding the
Special Tax Commencement
FY
Specia] Tax Commencement
FY through the Special Taa; 5% 2%
Final FY
�. METH011 OF AI'PORTIONMFNT
Commencing with the Special Tax Commencement PY and for each following Fiscal Year, the
CFD Administrator shal] 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 will be assigned a Masimum Special Tax Obligation and Assigned Special
Tax 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
previousform.
Third: The Maaimum 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
Taaable Acreage contained in the relevant Original Parcel. The sum of the Maacimum Special
Tax Obligations of each group of Successor Parcels shall be equal to Maximum Special TaY
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 shal] 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 Parce] of Developed Property at
100% of the applicable Annual Special Tax.
Successor Parcels that are assigned a Maximum Specia] Tax Obligation and an Assigned Special
Ta� Obligation in the current Fiscal Year w�ill be considered Original Parcels in the follov��ing
Fiscal Year.
,
Ordinance No. 336�
Pa�e No. 11
Non��ithstanding the above, under no circumstances ��ill the Special Tax levied in an}� Fiscal
Year against any Assessor's Parcel of Residential Propert�� for which an occupancy permit for
pri��ate residential use has been issued be increased as a result of a delinquenc}� or default in the
payment of the Special Tax applicable to any other Assessors Pazcel within CFD No. 17-I b}�
more than ten percent (10%) abo��e ��hat would ha��e been le��ied in the absence of such
delinquencies or defaults.
�. COLLECTION OF SPECI.4L T?.YES
Collection of the Annual Special Ta�: shall be made b�� the Countv in the same manner as
ordinan� ad valorem propem� taa:es are collected and the Annual Special Ta� shall be subject to
the same penalties and the same lien priorit�� in the case of delinquenc�� as ad ��alorem tases;
provided. however. that the Council may pro��ide for (i) other means of collecting the Special
Ta�, including direct biilings thereof to the propem� owners; and (ii) judicial foreclosure of
delinquent Annual Special Taxes.
6. PREPAI'�•IENT OF SPECI.4L T:�\ OBLICATfO\
A. Prepacment in Full
Propert�� o�ti�ners ma�� prepa�� and permanenth� satisfi� the Special Ta� Oblisation be a
cash settlement ���ith the Cih� as permitted under Govemment Code Section >3344.
The Special Ta� Obligation applicable to an Assessors Parcel of Developed Propem�, or
Undeveloped Property for tifiich a Building Permit has been issued ma�� be prepaid and
the obligation to pay the Special Tax for such Assessor`s Pazcel permanenth� satisfied as
described herein, provided that a prepayment may be made ���ith respect to a particular
Assessors Pazcel onl�� if there are no delinquent Special Taxes �vith respect to such
Assessors Parcel at the time of prepayment. An o�mer of an Assessor's Parcel elieible to
prepa}� the Special Tax Oblieation shall pro��ide the CFD Adminisvator �vith ���ritten
notice of intent to prepa}�, and designate or identif�� the company or asenc}� that ��-ill be
acting as the escroti� agent. if anv. The CFD Administrator shall provide the owmer N�ith a
statement of the Prepa��ment Amount For such Assessor's Parcel ���ithin thirty (30) da}�s
of the request; and ma�� chazge a reasonable fee for providing this service. The
Prepa��ment Amount (defined belo�+�) shall be calculated for each applicable Assessors
Parcel or group of Assessor's Pazcels as summarized below (capitalized terms as defined
below):
Deferred DIF Obligation
plus Accrued Interest Oblieation
plus Prepa}�ment Administrative Fees and Expenses
Total: equals Prepayment Amount
As of the proposed date of prepa��ment, the Prepayment Amount (defined in Step 14
belo���) shall be calculated as follo���s:
Step No.:
1. Confimi that no Special Tax delinquencies apph� to such Assessor`s
Parcel.
r
Ordinance No. 336�
Page No. 12
2. For Assessor's Parcels of Developed Property, determine the Deferred
DIF Oblieation and the Accrued Interest Obligation. For Assessors
Parcels of Undeveloped Property for ti�hich a Building Permit has been
issued, compute the Deferred DIF Obligation for that Assessors Parcel as
though it ��as already designated as Developed Property, based upon the
Building Permit which has already been issued for that Assessor's Pazcel.
3. Calculate the administrative fees and expenses of CFD No. 17-I, including
the costs of computation of the prepayment, the costs to invest the
prepayment proceeds, the costs of redeeming CFD No. 17-I, and the costs
of recording any notices to evidence the prepayment and the redemption
(the"Prepayment Administrative Fees").
4. The amount to prepay the Special Tax Obligation is equa] to the sum of
the amounts computed pursuant to paragraphs 1, 2 and 3 (the "Prepayment
AmounT').
�. The Prepayment Amount shall be deposited into the Construction Fund.
The amount computed pursuant to paragraph 3 shall be retained by CFD
No. 17-1.
The CFD Administrator will confirm that al] previous]y levied Special Taaes 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 Tas and the release of the Special Tax lien on such Assessor's Parcel,
and the obligation of the owner of such Assessor's Parcel to pay the Special Tax
shall cease.
B. Partial Prepayment
The Special Tax on an Assessor's Parcel of Developed PropeRy or Undeveloped Property
for which a building permit has been issued may be partially prepaid. The amount of the
prepayment shal] be calculated as in Section 6.A, except that a paRial prepayment shall
be calculated according to the following formula:
PP = (PE-A) x F+A
These terms have the following meaning:
PP = the partial prepayment
PG =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 Pazcel who desires such partial prepayment shall notify the
CFD Administrator of (i) sacl� oH�ner's intent to partially prepay the Special Taa
Oblioation; (ii) the percentage by �vhicl� the Special Tax Obligation shall be prepaid; and
(iii) the company or agenc�� that wi11 be acting as the escrow a�ent, if any. The CFD
Administrator shall provide the owner with a statement of� the amount required for the
Ordinance No. �36�
Pase No. ]3
partial prepa��ment of the Special Tax Obligation for an Assessors Pazcel within sixt��
(60) da��s of the request and ma}� charge a reasonable fee for providine this sen�ice.
With respect to anv Assessor's Parcel that is partially prepaid, the Cit�= 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 panial prepa�-ment of the Special Tax Oblieation and that
the remaining Special Ta�c Oblisation of such Assessors Pazcel, equal to the outstandine
percentaoe (1.00 - F) of the Deferred DIF Oblieation and the Accrued Interest Obligation.
shall continue to be le��ied on such Assessor`s Parcel in the same manner as before the
Panial Prepa��ment.
7. TER�1 OF SPECIAL TA\
The Special Tas shall be levied as lons as necessary to satisfi� the Assigned Special Tax
Obligation for a period not to exceed thim� (30) Fiscal Yeazs commencine ��ith Special Tax
Commencement FY; pro��ided hoN�e��er that the Special Tat «�ill cease to be le��ied in an eazlier
Fiscal Year if the CFD Administrator has determined that all CFD No. 17-I obliaations have
been satisfied.
8. E\E�1PT10\S
The CFD Administrator shall classifi� as Esempt Propert�� (i) Assessor`s Pazcels of Public
Propem�, (ii) Assessor's Parceis of Propert}� O��ner Association Property. or (iii) Assessor`s
Pazcels which are used as places of «-orship and are exempt from ad ��alorem property ta�es
because thev are owmed by a relisious oreanization. (iv) Assessors Parcels �aith public or utilin�
easements making impractical their utilization for other than the purposes set forth in the
easement. and (v) Assessor`s Parcels of Developed Propert}� classified as Non-Residential
Propem- as determined reasonabh� b��the CFD Administrator.
If the use of an Assessors Parcel of Exempt Propem� changes so that such Assessors Pazcel is
no lonaer classified as one of the uses set forth in the first pazagraph of Section 8 abo��e that
���ould mal:e such Assessors Parcel elieible to be classified as Esempt Propert}�, such Assessors
Parcel shall cease to be dassified as Esempt Property and shall be deemed to be Tazable
Propem�.
9. APPEALS
Am landowmer «�ho pays the Special Tax and daims the amount of the Special Ta� levied on his
or her Assessors Parcel is in error shall first consult �vith the CFD Adminisvator reeardina such
error not later than thim�-six (36) months afrer first ha��ing paid the first installment of the
Special Tar that is disputed. If folloti�ing such consultation the CFD Administrator determines
that an error has occurred, then the CFD Administrator sha11 take anv of the follo���ina actions. in
order of prioritv. in order to correct the enor:
(i) Amend the Special Tax le��}� on the lando��mer`s Assessor`s Parcel(s) for the
current Fiscal Year prior to the pavment date.
(ii) Require the CFD to reimburse the lando���ner for the amount of the overpa�•ment
to the estent of a��ailable CFD funds. or
(iii) Grant a credit against. eliminate or reduce the future Special Tases on the
lando��=ner s Assessor's Parcel(s) in the amount of the o��erpa��ment.
Ordinance No. 336�
Page No. 14
lf following such consultation and action by the CFD Administrator tl�e landowner believes such
error still exists, such person may file a written notice oPappeal with the City CounciL Upon the
receipt of such notice, the Cih� Council or designee may establish such procedures as deemed
necessary to undertake the revieH� of any such appeal. If the City Council or designee
determines an error still exists; the CFD Administrator shall take any of the actions described as
(i), (ii) and (iii) above, in order of priority, in order to correct the error.
The City Council or desi�nee thereof shall interpret this Rate and Method of Apportionment of
Special Tax for purposes of dazifying any ambiguities and make determinations relative to the
administration of the Special Taa; and any landowner appeals. The decision of the City Counci]
or designee shall be final.