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HomeMy WebLinkAboutReso 2017-074RESOLUTION NO. 2017-074 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA FORMING AND ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 19M (FREEWAY COMMERCIAL 2), AND AUTHORIZING SUBMITTAL OF THE LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS OF SUCH COMMUNITY FACILITIES DISTRICT WHEREAS, the City Council of the City of Chula Vista, California (the "City Council"), has previously declared its intention to form a community facilities district and ordered the preparation of a community 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," being Chapter 2.5, Part 1, Division 2, Title 5 of the Government -Code of the- State of California_(the "Act") and the City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the "Ordinance") (the Act and the Ordinance may be referred to collectively as the "Community Facilities District Law'). This community facilities district shall hereinafter be referred to as Community Facilities District No. 19M (Freeway Commercial 2) ("CFD No. 19M"); and WHEREAS, notice of a public hearing relating to the establishment of the CFD No. 19M, the extent of CFD No. 19M, the financing of certain types of services and all other related matters has been given, and a community facilities district report (the "CFD No. 19M Report'), as ordered by this City Council, has been presented to this City Council and has been made a part of the record of the hearing to establish CFD No. 19M; and WHEREAS, all communications relating to the establishment of CFD No. 19M, the proposed services and the rate and method of apportionment of the special tax proposed to be levied within- CFD No. 19M have been presented, and it has further been determined that a majority protest as defined by law has not been received against these proceedings or the levy of the special tax within CFD No. 19M; and WHEREAS, inasmuch as there have been less than twelve (12) registered voters residing within the territory of CFD No. 19M for at least the preceding ninety (90) days, the authorization to levy special taxes within CFD No. 19M shall be submitted to the landowners of CFD No. 19M, such landowners being the qualified electors as authorized by law. 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 City Council that: Resolution No. 2017-074 Page No. 2 A. All prior proceedings pertaining to the formation of CFD No. 19M were valid and taken in conformity with the requirements of the law, and specifically the provisions of the Community Facilities District Law, and that this finding and determination is made pursuant to the provisions of Government Code Section 53325.1. B. The written protests received, if any, do not represent a majority protest as defined by the applicable provisions of the Community Facilities District Law and, therefore, the special tax proposed to be levied within CFD No. 19M has not been precluded by majority protest pursuant to Section 53324 of the Government Code of the State of California. C. CFD No. 19M as proposed conforms with the City of Chula Vista Statement of Goals and Policies Regarding the Establishment of Community Facilities Districts (the "Goals -and Policies'-'), as -amended. D. Less than twelve (12) registered voters have resided within the territory of CFD No. 19M for each of the ninety (90) days preceding the close of the public hearing, therefore, pursuant to the Act the qualified electors of CFD No. 19M shall be the landowners of CFD No. 19M as such term is defined in Government Code Section 53317(f) and each such landowner who is the owner 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 CFD No. 19M. E. The time limit specified by the Community Facilities District Law for conducting an election to submit the levy of the special taxes to the qualified electors of CFD No. 19M and the requirements for impartial analysis and ballot arguments have been waived with the unanimous consent of the qualified electors of CFD No. 19M. 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 CFD No. 19M. SECTION 3. Community Facilities District Report. The CFD No. 19M Report, as now submitted by NBS, Special Tax Consultant, shall stand as the report required pursuant to Government Code Section 53321.5 for all future proceedings and all terms and contents are approved as set forth therein. SECTION 4. Name of District. The City Council does hereby establish and declare the formation of CFD No. 19M known and designated as "Community Facilities District No. 19M (Freeway Commercial 2)." SECTION 5. Boundaries of CFD No. 19M. The boundaries of CFD No. 19M are generally described as follows: Resolution No. 2017-074 Page No. 3 All property within the boundaries of Community Facilities District No. 19M (Freeway Commercial 2), as shown on a boundary map as previously approved by this legislative body, such map designated "Proposed Boundaries of Community Facilities District No. 19M (Freeway Commercial 2), City of Chula Vista. County of San Diego, State of California," a copy of which is on file in the Office of the City Clerk. The boundary map of the proposed District was filed on April 18, 2017 pursuant to Sections 3111 and 3113 of the Streets and Highways Code of the State of California in the Office of the County Recorder of the County of San Diego (the "County'), at Page 55 of Book 46 of the Book of Maps of Assessment and Community Facilities Districts of the County as Document Number 2017- 7000138. SECTION 6. Description of Services. It is the intention of this City Council to finance certain services (the "Services") that are in addition to those provided in or required for the territory within CFD No. 19M and will not be replacing services already available. A general description of the services to be -provided is provided in Exhibit ''A'' attached hereto. SECTION 7. Special Tax. Except where funds are otherwise available special taxes sufficient to pay for the Services, to establish or replenish a reserve fund, the replacement costs of park or other public improvements within the District and related incidental expenses authorized by the Community Facilities District Law, secured by recordation of a continuing lien against all non-exempt real property in CFD No. 19M, are hereby authorized, subject to voter approval; to be levied annually within the boundaries of CFD No. 19M. For further particulars as to the rate and method of apportionment of the special taxes proposed to be levied within CFD No. 19M, reference is made to the attached and incorporated Exhibit "B," which sets forth in sufficient detail the rate and method of apportionment to allow each landowner or resident within CFD No. 19M to clearly estimate the maximum amount that such person will have to pay for such services. The special taxes herein authorized shall be collected in the same manner as ad valorem property taxes and shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency, as applicable for ad valorem taxes; however; as applicable, this legislative body may, by resolution, establish and adopt an alternate or supplemental procedure as necessary. Any special taxes that may not be collected on the County tax roll shall be collected through a direct billing procedure by the Treasurer of the City of Chula Vista, acting for and on behalf of CFD No. 19M. 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, a continuing lien to secure each levy of the special tax shall attach to all non-exempt real property in CFD No. 19M and this lien shall continue in force and effect until the lien canceled in accordance with law or until collection of the tax by the legislative body ceases. The special tax obligation for any parcel may not be prepaid. Resolution No. 2017-074 Page No. 4 SECTION 8. Special Tax Accountability Measures. Pursuant to and in compliance with the provisions of Government Code Section 50075.1, this City Council hereby establishes the following accountability measures pertaining to the levy by CFD No. 19M of the special taxes described in Section 7 above: A. Each such special tax shall be levied for the specific purposes set forth in Section 7. above. B. The proceeds of the levy of each such special tax shall be applied only to the specific applicable purposes set forth in Section 7. above. C. CFD No. 19M shall establish a separate account into which the proceeds of each such special tax shall be deposited. D. The City Manager or his or her designee, acting for and on behalf of CFD No. 19M, shall annually file a report with the City Council as required pursuant to Government Code Section 50075.3. SECTION 9. Preparation of Annual Tax Roll. The name, address and telephone number of the office, department or bureau which will be responsible for preparing annually a current roll of special tax levy obligations by Assessor's parcel number and which shall be responsible for estimating future special tax levies pursuant to Section 53340.1 of the Government Code of the State of California, are as follows: Engineering Department City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 (619) 691-5021 SECTION 10. Election. This legislative body herewith submits the levy of the special taxes to the qualified electors of CFD No. 19M, such electors being the landowners within CFD No. 19M, with each landowner having one (1) vote for each acre or portion thereof of land which he or she owns within CFD No. 19M. This legislative body hereby further directs that a separate ballot proposition relating to the levy of the above referenced special taxes within CFD No. 19M be combined and consolidated with the proposition set forth in Section 11 below relating to the establishment of an appropriations limit for CFD No. 19M. The proposition related to the levy of the special taxes, together with a proposition to establish an appropriations limit for CFD No. 19M, shall be submitted to the qualified electors of CFD No. 19M at a special election to be held on (a) May 16, 2017, immediately following the adoption of this resolution or (b) such other date as the qualified electors and the City Clerk may mutually agree and such election shall be a special election to be conducted by the City Clerk (hereinafter referred to as the "Election Official"). If either or both of the propositions for the levy of the special taxes receive the approval of more than two-thirds (2/3rds) of the votes cast on the proposition, the special tax thereby approved may be levied as provided for in this Resolution. Resolution No. 2017-074 Page No. 5 SECTION 11. Ballot Proposals. The ballot proposals to be submitted to the qualified electors of CFD No. 19M at the election shall generally be as follows: PROPOSITION A Shall Community Facilities District No. 19M (Freeway Commercial 2), subject to the accountability measures required pursuant to Government Code Section 50075.1, levy a special tax throughout Community Facilities District No. 19M (Freeway Commercial 2) pursuant to the rate and method of apportionment attached as Exhibit A to this ballot for the purposes of financing the services described in Exhibit B to this ballot? Shall Community, Facilities District No. 19M (Freeway Commercial 2) establish an Article XIIIB appropriations limit equal to $600;000? SECTION 12. Vote. The appropriate mark placed in the voting square after the word "YES" shall be counted in favor of the adoption of the proposition, and the appropriate mark placed in the voting square after the word '`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: Prepare and furnish the necessary election supplies for the conduct of the election. 2. Cause to be printed the requisite number of official ballots, tally sheets and other necessary forms. 3. Furnish official ballots for the qualified electors of CFD No. 19M. 4. Cause the official ballots to be presented to the qualified electors, as required by law. 5. Receive the returns of the election and supplies. 6. Sort and assemble the election material and supplies in preparation for the canvassing of the returns. 7. Canvass the returns of the election. 8. Furnish a tabulation of the number of votes given in the election. 9. Conduct and handle all other matters relating to the proceedings and conduct of the election in the manner and form as required by law. Resolution No. 2017-074 Page No. 6 SECTION 14. Effective Date. This Resolution shall become effective immediately upon its adoption. Presented by Kell roughton, FASLA Director of Development Services Approved as to form by len R. ogins Ci ey PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 16th day of May 2017 by the following vote: AYES: Councilmembers: Aguilar, McCann, Padilla, and Salas NAYS: Councilmembers: None ABSENT: Councilmembers: Diaz 4) 44� Mary as, Mayor ATTEST: Donna R. Norris, MC, City Clerk STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CHULA VISTA I, Donna R. Norris, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2017-074 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 16th day of May 2017. Executed this 16th day of May 2017. Donna R. Norris, CMC, City Clerk Resolution No. 2017-074 Page No. 7 EXHIBIT "A" DESCRIPTION OF SERVICES The types of services (the "Services") to be funded by special taxes levied within the District shall include maintenance, servicing and replacement of (a) landscaping, including, but not limited to, trees; shrubs, grass, other ornamental vegetation located in or on slopes, parkways and medians; (b) facilities that are directly related to storm water conveyance, including, but not limited to pipes and drainage inlets, the Poggi Canyon channel and detention basin or parks; (c) walls and fencing; and (d) parks (together, the "Improvements" as specified in the list of public facilities below), property owned by the City of Chula Vista ("City") or property over which the City has an easement authorizing the City to maintain such landscaping, facilities, walls and fencing and trails. For purposes of this description of the Services to be funded by the levy of special taxes within the District, "maintenance" includes, but is not limited to, the furnishing of services and materials for the ordinary and usual .maintenance, operation, and servicing of any of the Improvements, including: (a) Repair, removal, or replacement of all facilities. (b) Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury. (c) The removal of trimmings, rubbish, debris, silt, and other solid waste. (d) The cleaning, sandblasting, and painting of walls and other Improvement Areas to remove or cover graffiti. (e) The elimination, control, and removal of rodents and vermin. (f)) The maintenance and cleaning of drainage and other storm water control facilities required to provide storm water quality control. "service" or "servicing" means the furnishing of: (a) Electric current or energy, gas, or other illuminating agent for any public lighting facilities or for the lighting or operation of any other Improvements. (b) Water for the irrigation of any landscaping or the operation or maintenance of any other Improvements. For purposes of this description of the Services to be funded by the levy of special taxes within the District, "administrative expenses" means the actual or estimated costs incurred by the City, acting for and on behalf of the District as the administrator thereof; to determine, levy and collect the special taxes within the District, including salaries of City employees and a proportionate amount of the City's general administrative overhead related thereto, and the fees of consultants and legal counsel providing services related to the administration of the District; the costs of collecting installments of the special taxes levied within the District; and any other costs required to administer the District as determined by the City. Resolution No. 2017-074 Page No. 8 List of Public Facilities to be Maintained Community Facilities District No. 19M (Freeway Commercial 2) I. LANDSCAPE MAINTENANCE Planted Area — Town Center Drive Parkways & Medians Trees Shrubs and Groundcover Median Maintenance Hardscape 6' Entry Monument Wall Street Pole Lighting Graffiti Abatement for 6' Entry Monument Wall Irrigation Water Cost Planted Area — FC — 2 Centerpark Road Trees Palms Shrubs and Groundcover Irrigation Water Cost II. TOWN CENTER PARK MAINTENANCE Planted Area Trees Approved Palms Planting Material Sod/Turf Irrigation Water Cost Flatwork/Walls Seating Wall — Amphitheater Area Seating Wall — Picnic and Hillside Area Entry Monument Walls Graffiti Abatement — Walls & Flatwork Enriched Concrete — Plaza/Picnic Area Concrete Walk Site Amenities, Features Splash Pad with Water Jets and Equipment Bike Racks Trash Receptacles Benches Boulder Field Play Area Graffiti Abatement — Boulders Stair System Hillside Concrete Stair and Bridge Handrail System Resolution No. 2017-074 Page No. 9 II. TOWN CENTER PARK MAINTENANCE (Continued) Hillside Artificial Turf Slide Area Tree Grates — 5 "' a 5' Cast Iron Pole Lights Moveable Furniture Secured with Cable Dog Waste Bag Dispenser/Collection/Disposal Services Trash Collection & Disposal Utilities (Gas & Electric) Structures Restroom and Storage Building Trellis -Wood Bridge -Wood III. -STORM-WATER MAINTENANC—E Infrastructure Catch Basins and Outlets Public Works Staff -Clean & Flush Catch Basins Machine Clean Pipe CCTV Inspection Poggi Channel/Detention Basin Channel Detention Basin IV. CFD IRRIGATION CONTROLLERS Cell Phone Service Controller Maintenance Cost Water Meter Fees Irrigation Parts Irrigation Maintenance Cost Resolution No. 2017-074 Page No. 10 EXHIBIT "B" RATE AND METHOD OF APPORTIONMENT FOR CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 19M (FREEWAY COMMERCIAL 2) A Special Tax as hereinafter defined shall be levied on each Assessor's Parcel of Taxable Property within the City of Chula Vista Community Facilities District No. 19M (Freeway Commercial 2) ("CFD No. 19M") and collected each Fiscal Year commencing in Fiscal Year 2017-2018 in an amount determined by the CFD Administrator through the application of the Special Tax for Taxable Property as described below. All of the Taxable Property within CFD No. 19M, unless exempted by law or by the provisions hereof, shall be taxed for the purposes to the extent and in the manner herein provided. A. GENERAL DEFINITIONS The terms hereinafter set forth have the following meaning: "Acre" or "Acreage" means the land area of an Assessor's Parcel as shown on County records, such as an Assessor's Parcel Map or secured roll data, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable Final Subdivision Map, condominium plan, record of survey, or other recorded document creating or describing the parcel. If the preceding maps for a land area are not available, the Acreage of such land area may be determined utilizing available spatial data and GIS. The square footage of an Assessor's Parcel is equal to the Acreage multiplied by 43,560. "Act" means the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the actual or reasonably estimated costs incurred by the City acting for and on behalf of the CFD as administrator thereof, to determine, levy and collect the Special Taxes, in responding to. public inquiries regarding the Special Taxes, including salaries of City employees and a proportionate amount of the City's general administrative overhead related thereto; the fees of consultants and legal counsel providing services related to the administration of the CFD; any amounts estimated or advanced by the City or CFD for any other administrative purposes; and any other costs required to administer the CFD as determined by the City. "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned assessor's parcel number. "Assessor's Parcel Map" means an official map of the County Assessor of the County designating lots or parcels by an Assessor's Parcel number. "Authorized Services" means those authorized maintenance activities and/or services, and expenses that may be funded by CFD No. 19M pursuant to the Act as amended, including, without limitation, those services authorized to be funded by CFD No. 19M as set forth in the documents adopted by the City Council at the time CFD No. 19M was formed. City of Chula Vista - Community Facilities District No. 19M March 27, 2017 (Freeway Commercial 2) Page 1 Resolution No. 2017-074 Page No. 11 "Building Square Foot" or "Square Footage" means the square footage as shown on a building permit for an Assessor's Parcel of Non -Residential Property. "Capital Replacement Reserve Fund" means a fund that shall be maintained for the CFD for each Fiscal Year to provide for the accumulation and holding of funds for long-term capital projects, asset replacement, or other large anticipated expenditures. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD No. 19M" or "CFD" means City of Chula Vista Community Facilities District No. 19M (Freeway Commercial 2). "City" means the City -of Chula -Vista. "City Council" means the City Council of the City, acting as the legislative body of CFD No. 19M. "City Finance Director" means the Finance Director of the City or his or her designee. "City Manager" means the City Manager of the City or his or her designee. "County" means the County of San Diego. "County Assessor" means the Assessor of the County or his or her designee. "County Recorder" means the Recorder of the County or his or her designee. "Community Purpose Facility Property" or "CPF Property" means all Assessor's Parcels that are classified as community purpose facilities and meet the requirements of Chula Vista Municipal Code Section 19.48.025, as amended from time to time. "Construction Cost Index" means, for any Fiscal Year, the applicable Construction Cost Index for the Los Angeles Area as set forth in the Engineering News Record for July of the preceding Fiscal Year. In the event that this rate is no longer published or provided, the CFD Administrator shall choose a comparable rate to use in its place. "Consumer Price Index for Urban Wage Earners and Clerical Workers" or "CPI -W" means the applicable CPI -W as set forth by the United States Department of Labor, Bureau of Labor Statistics for July of the preceding Fiscal Year. In the event that this rate is no longer published or provided, the CFD Administrator shall choose a comparable rate to use in its place. "Density" means for each Assessor's Parcel of Single Family Property the number of Dwelling Units per gross Acre as determined based on the approved tentative map or approved tentative parcel map entitling the development unless otherwise approved in writing by the City Manager. "Developed Property" means all Taxable Property for which a building permit was issued prior to the March 15i preceding the Fiscal Year in which the Special Tax is being levied. City of Chula Vista - Community Facilities District No. 19M March 27, 2017 (Freeway Commercial 2) Page 2 Resolution No. 2017-074 Page No. 12 "Dwelling Unit" or "DU" means each separate residential dwelling unit that comprises an independent facility capable of conveyance or rental separate from adjacent residential dwelling units. "Estimated Special Tax Delinquency Amount" a reasonable estimate of delinquencies expected to occur in the Fiscal Year in which the Special Tax will be levied based on the delinquency rate for Special Taxes levied in the previous Fiscal Year. "Exempt Property" means all Assessors' Parcels that are exempt from the Special Tax pursuant to law or Section E herein. "Final Subdivision Map" means a subdivision of property creating residential or non-residential buildable lots by recordation of a Final Subdivision Map or parcel map pursuant to the Subdivision Map -Act (California Government Code Section 66410-et-seq.), or recordation of a condominium plan pursuant to the California Civil Code 1352, that creates individual lots for which building permits may be issued without further subdivision and is recorded prior to March 111 preceding the Fiscal Year in which the Special Tax is being levied. "Fiscal Year" means the period starting July 1St and ending on the following June 30th. "Hotel Property" means all Assessor's Parcels of Developed Property for which a building permit(s) has been issued for purposes of constructing one or more structures comprising of individual sleeping or living units, except as otherwise provided herein, for the accommodation of transient guests. "Land Use Class" means any of the classes listed in Table 1. "Maximum Special Tax" means the Maximum Special Tax, determined in accordance with Section C, which may be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property. "Multi -Family Property" means all Assessor's Parcels of Residential Property consisting of two or more for -rent Dwelling Units that share common walls, including, but not limited to, apartments and Residential Property that are not for sale to an end user and are under common management. "Non -Residential Property" means all Assessor's Parcels of Developed Property, for which a building permit(s) has been issued for a structure or structures for non-residential use, excluding Hotel Property. "Otay Water District Commodity Rate" means the maximum rate charged by the Otay Water District for recycled water on the preceding July 1St of any Fiscal Year. In the event that this rate is no longer published or provided, the CFD Administrator shall choose a comparable rate to use in its place. "Property Owner Association Property" means any Assessor's Parcel within the boundaries of the CFD that is owned by, or irrevocably dedicated as indicated in an instrument recorded with the County Recorder to, a property owner association, including any master or sub -association. City of Chula Vista - Community Facilities District No. 19M March 27, 2017 (Freeway Commercial 2) Page 3 Resolution No. 2017-074 Page No. B "Proportionately" means for Taxable Property that the ratio of the Special Tax to the Maximum Special Tax is equal for all Taxable Property levied within each Land Use Class within CFD No. 19M. "Public Property" means any property within the boundaries of CFD No. 19M which (i) is owned by a public agency or expected to be owned by a public agency at the time of CFD formation, (ii) has been irrevocably offered for dedication to a public agency, or (iii) is designated with specific boundaries and acreage on a Final Subdivision Map as property which will be owned by a public agency. For purposes of this definition, a public agency includes the federal government, the State of California, the County, the City, or any other public agency. "Operating Reserve Fund" means a fund that shall be maintained for the CFD each Fiscal Year to provide necessary cash flow for the first six months of each Fiscal Year, working capital to cover monitoring, maintenance and repair cost overruns and delinquencies in the payment of Special Taxes -and a reasonable buffer to prevent large variations in annual Special Tax levies. "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit(s) has been issued for purposes of constructing one or more residential Dwelling Unit(s). "Single Family Property" means all Assessor's Parcels of Residential Property consisting of one or more Dwelling Unit(s) that may or may not share common walls with one or more other Dwelling Unit(s), including, but not limited to, duplexes, triplexes, townhomes, condominiums, and other Residential Properties that are for sale to an end user and are not under common management. "Special Tax" means the Special Tax levied in each Fiscal Year on each Assessor's Parcel of Taxable Property to fund the Special Tax Requirement. "Special Tax Requirement" means the amount, as determined by the CFD Administrator, for any Fiscal Year to: (i) pay the costs of providing the Authorized Services during such Fiscal Year, (ii) pay Administrative Expenses associated with the Special Tax, (iii) establish or replenish the Operating Reserve Fund, (iv) establish or replenish the Capital Replacement Reserve Fund, (v) pay for the replacement costs of park or other public improvements within the CFD, (vi) pay incidental expenses related to the Authorized Services as authorized pursuant to the Act, (vii) fund an amount equal to the Estimated Special Tax Delinquency Amount, and (viii) fund the shortfall, if any, in the Special Tax revenues collected in the preceding Fiscal Year where such shortfall resulted from delinquencies in the payment of Special Taxes in such Fiscal Year that exceeded the Estimated Special Tax Delinquency Amount included in the Special Tax Requirement for the preceding Fiscal Year, less (ix) any excess funds available in the Operating Reserve Fund, Capital Replacement Reserve Fund, or other funds associated with CFD No. 19M as determined by the City Finance Director. "State" means the State of California. "Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD No. 19M, that are not Exempt Property from the CFD No. 19M Special Tax pursuant to law or Section E. "Undeveloped Property" means for each Fiscal Year, all Taxable Property not classified as Developed Property. City of Chula Vista - Community Facilities District No. 19M March 27, 2017 (Freeway Commercial 2) Page 4 Resolution No. 2017-074 Page No. 14 B. ASSIGNMENT TO CATEGORIES OF SPECIAL TAX Each Fiscal Year, beginning with Fiscal Year 2017-2018, using the definitions above, each Assessor's Parcel within CFD No. 19M shall be classified by the CFD Administrator as Taxable Property or Exempt Property. Commencing with Fiscal Year 2017-2018 and for each subsequent Fiscal Year, Taxable Property shall be subject to the levy of Special Taxes pursuant to Section C. In addition, in each such Fiscal Year, each Assessor's Parcel of Taxable Property shall be further classified by the CFD Administrator as Developed Property or Undeveloped Property. Developed Property shall be further assigned to a Land Use Class as specified in Table 1 of Section C. The Land Use Class of each Assessor's Parcel shall be determined based on the records of the County Assessor or other such information provided by the City. In some instances, an Assessor's Parcel of Developed Property may contain more than one Land Use Class. The Maximum Special Tax determined on such Assessor's Parcel shall be the sum of the Maximum Special Taxes for all Land Use Classes located on that Assessor's Parcel. City of Chula Vista - Community Facilities District No. 19M March 27, 2017 (Freeway Commercial 2) Page 5 Resolution No. 2017-074 Page No. 1 C. MAXIMUM SPECIAL TAX RATE The Maximum Special Tax for any Assessor's Parcel classified as Developed Property or Undeveloped Property shall be determined by reference to Table 1 and the paragraphs that follow Table 1. TABLE 1 Maximum Special Tax for Developed and Undeveloped Property Community Facilities District No. 19M Fiscal Year 2017-2018 The Maximum Special Tax shall be equal to the sum of the Maximum Special Tax Component for Labor, Maximum Special Tax Component for Water and Maximum Special Tax Component for Asset Replacement as shown in Table 1. In determining the Maximum Special Tax, the Maximum Special Tax Components for each Land Use Class shall be increased in the 2018-2019 Fiscal Year and each Fiscal Year thereafter, as follows: 1. The annual percentage change of the Maximum Special Tax Component for Labor shall be equal to the annual percentage change for the July immediately preceding the current Fiscal City of Chula Vista - Community Facilities District No. 19M March 27, 2017 (Freeway Commercial 2) Page 6 Maximum Maximum Maximum Special Tax Fiscal Year Special Tax Special Tax Component 2017-2018 Component Component for Asset Maximum Land Use Class for Labor for Water Replacement Special Tax Single Family Property $803.23 per $223.47 per $43.30 per $1,070.00 per with Density (DU/Acre) of <19 DU DU DU DU Single Family Property $481.94per $134.08 per $25.98 per $642.00 per with Density (DU/Acre) of >19 DU DU DU DU $2,614.63 per $727.41 per $140.96 per $3,483.00 per Multi -Family Property Acre Acre Acre Acre $0.32 per $0.09 per $0.02 per $0.43 per Non -Residential Property Building Building Building Building Square Foot Square Foot Square Foot Square Foot $4,329.94 per $1,204.62 per $233.44 per $5,768.00 per Hotel Property Acre Acre Acre Acre $7,314.65 per $2,034.99 per $394.36 per $9,744.00 per Undeveloped Property Acre Acre Acre Acre The Maximum Special Tax shall be equal to the sum of the Maximum Special Tax Component for Labor, Maximum Special Tax Component for Water and Maximum Special Tax Component for Asset Replacement as shown in Table 1. In determining the Maximum Special Tax, the Maximum Special Tax Components for each Land Use Class shall be increased in the 2018-2019 Fiscal Year and each Fiscal Year thereafter, as follows: 1. The annual percentage change of the Maximum Special Tax Component for Labor shall be equal to the annual percentage change for the July immediately preceding the current Fiscal City of Chula Vista - Community Facilities District No. 19M March 27, 2017 (Freeway Commercial 2) Page 6 Resolution No. 2017-074 Page No. 16 Year and.compared to the previous year's Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI -W); and 2. The annual percentage change of the Maximum Special Tax Component for Water shall be equal to the annual percentage change for the July immediately preceding the current Fiscal Year and compared to the previous year's Otay Water District Commodity Rate; and 3. The annual percentage change of the Maximum Special Tax Component for Asset Replacement shall be equal to the annual percentage change for the July immediately preceding the current Fiscal Year and compared to the prior year's Construction Cost Index. The Fiscal Year 2017-2018 Maximum Special Tax shall be equal to the Fiscal Year 2017-2018 Maximum Special Tax rates listed in Table 1. In each subsequent Fiscal Year, the Maximum Special Tax Components shall be increased by the escalation factor outlined above in Section C (1, 2, and 3), provided the Maximum Special Tax Component for Labor, the Maximum Special -Tax Component for Water and the Maximum Special Tax Component for Asset Replacement shall -never be -less than two percent (2%) and not greater than six percent (6%) of the maximum amounts in the preceding Fiscal Year, respectively. D. METHOD OF APPORTIONMENT OF SPECIAL TAX Commencing with Fiscal Year 2017-2018, and for each subsequent Fiscal Year, the CFD Administrator shall levy the Special Tax at the rates established in Section C on all Taxable Property within CFD No. 19M until the total amount of Special Tax levied equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows: 1. The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property within the CFD up to one hundred percent (100%) of the applicable Maximum Special Tax. 2. If additional monies are needed to satisfy the Special Tax Requirement after Developed Property has been levied one hundred percent (100%) of their Maximum Special Tax, the remaining amount needed to satisfy the Special Tax Requirement shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property at up to one hundred percent (100%) of the Maximum Special Tax on Undeveloped Property. Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor's Parcel of Residential Property be increased because of delinquency or default by the owner of any other Assessor's Parcel within the CFD by more than ten percent (10%) above what such Special Tax would have been in the absence of delinquencies. E. EXEMPTIONS The CFD Administrator shall classify the following as Exempt Property: Public Property, Property Owner Association Property, Community Purpose Facility Property, and Assessor's Parcels with City of Chula Vista - Community Facilities District No. 19M March 27, 2017 (Freeway Commercial 2) Page 7 Resolution No. 2017-074 Page No. 17 public or utility easements making impractical their utilization for any use other than the purposes set forth in the easement. If the use of an Assessor's Parcel changes so that such Assessor's Parcel is no longer eligible to be classified as Exempt Property under this section, such Assessor's Parcel shall be deemed to be Taxable Property. F. PREPAYMENT OF SPECIAL TAX The Maximum Special Tax may not be prepaid and shall continue to be levied in accordance with Section D of this Rate and Method of Apportionment on an annual basis on all Taxable Property in CFD No. 19M for the purpose of funding ongoing Authorized Services. G. REVIEW/APPEALS The CFD Administrator may establish such procedures, as it deems necessary to undertake the review of any such appeal. The CFD Administrator shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any property owner appeals, as herein specified. Any property owner who feels that the amount of the Special Tax levied on their Assessor's Parcel is in error shall first consult with the CFD Administrator regarding such error. If following such consultation, the CFD Administrator determines that an error has occurred; the CFD Administrator in consultation with the City Finance Director shall take any of the following actions to correct the error: • Amend the Special Tax levy on the property owner's Assessor's Parcel(s) for the current Fiscal Year, • Require the CFD to reimburse the property owner for the amount of the overpayment for the current Fiscal Year to the extent of available CFD funds, or • Grant a credit against, eliminate or reduce the future Special Taxes on the property owner's Assessor's Parcel(s) for overpayment for the current Fiscal Year. If following such consultation and action (if any by the CFD Administrator), the property owner believes such error still exists, such person may file a written notice with the City Finance Director appealing the amount of the Special Tax levied on such Assessor's Parcel. If following such consultation and action (if any by the City Finance Director), the property owner believes such error still exists, such person may file a written notice with the City Council appealing the amount of the Special Tax levied on such Assessor's Parcel. If the City's Finance Director, City Council or designee determines an error exists; the CFD Administrator shall take any actions as described above, in order to correct the error. The decision of the City Council shall be final and binding to all persons. City of Chula Vista - Community Facilities District No. 19M March 27, 2017 (Freeway Commercial 2) Page 8 Resolution No. 2017-074 Page No. 18 H. INTERPRETATIONS The CFD Administrator may make interpretations. If necessary, interpretations may be made by the City Council, by ordinance or resolution, for purposes of clarifying any vagueness or ambiguity as it relates to this Rate and Method of Apportionment. I. MANNER OF COLLECTION The annual Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 19M, may, at the sole discretion of the City, directly bill the Special Tax, and may collect the Special Taxes at a different time or in a different manner as necessary to meet its financial obligations. J. REPEAL OF -SPECIAL TAX If the levy of the Special Tax is repealed by initiative or any other action participated in by the property owners of Assessor's Parcels in CFD No. 19M, the City shall cease to levy the Special Tax and shall cease to be obligated to provide the Authorized Services for which the Special Tax was levied. The obligation to provide the Authorized Services previously funded by the repealed Special Tax shall become the joint obligations of the property owners of Assessor's Parcels within CFD No. 19M. K. TERM OF SPECIAL TAX The Maximum Special Tax shall be levied commencing in Fiscal Year 2017-2018 and shall be levied in perpetuity, unless and until such time the City determines that revenues are no longer needed to pay the Special Tax Requirement. City of Chula Vista - Community Facilities District No. 19M March 27, 2017 (Freeway Commercial 2) Page 9