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HomeMy WebLinkAboutReso 2002-314- RESOLUTION NO. 2002-314 RESOLUTION OF THE iCITY COUNCIL OF THE CITY OF CHULA VISTA FORMING AND ESTABLISHING COMMUNITY FACILITiES DISTRICT NO. 07M (EASTLAKE III - WOODS, VISTAS AND LAND SWAP PARCEL) AND AUTHORIZING SUBMITrAL OF LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS WHEREAS, a public heating has been held and concluded, and the City Council of the City of Chula Vista, California (the "City Council"), now desires to proceed with the establishment of a community facilities district and to designate two improvement areas therein, pursuant to the terms and provisions oflthe "Mello-Roos Community Facilities Act of 1982", being Chapter 2.5, Part 1, Division 2, Title 5 of the Govemmem 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"). Such Community Facilities District shall hereinafter be referred to as Community Facilities District No. 07M (EastLake III - Woods, Vistas and Land Swap Parcel) (the "District"); and WHEREAS, notice of a public hearing relating to the establishment of the District, the extent of the District, the designation of the improvement areas within the District, the financing of certain types of services and all other related matters has been given, and a Community Facilities District 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 such District; and WHEREAS, all communications relating to the establishment of the District, the designation of the improvement areas, the proposed services and the rates and methods of apportionment of the special tax proposed to be levied within each improvement area 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 either improvement area; and WHEREAS, inasmuch as there have been less than twelve (12) registered voters residing within the tel~itory of each improvement :area of the District for at least the preceding ninety (90) days, the authorization to levy special taxes within each improvement area of the District shall be submitted to the landowners of each such, improvement area, 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: A. All prior proceedings pertaining to the formation of the District and designation of the improvement areas 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. Resolution 2002-314 Page 2 B. The written protests received, if any, do not represent a majority protest as def'med by the applicable provisions of the Community Facilities District Law and, therefore, the special tax proposed to be levied within each improvement area of the District has not been precluded by majority protest pursuant to Section 53324 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 Community Facilities Districts (the "Goals and Policies'), as amended. D. Less than twelve (12) registered voters have resided within the territory of each improvement area within the District for each of the ninety (90) days preceding the close of the public hearing, therefore, pursuant to the Act the qualified electors of each of the improvement areas within the District shall be the landowners of such improvement area as such term is defmed in Government Code Section 53317(0 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 such improvement area. 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 each improvement area of the District and the requirements for impartial analysis and ballot arguments have been waived with the unanimous consent of the qualified electors of each such improvement area. 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. Community Facilities District Report. The Community Facilities District Report, as now submitted, shall stand as the Community Facilities District Report for all future proceedings and all terms and contents are approved as set forth therein. SECTION 4. Name of District. This legislative body does hereby establish and declare the formation of the Community Facilities District known and designated as "Community Facilities District No. 07M (EastLake III - Woods, Vistas and Land Swap Parcel)." SECTION 5. Boundaries of the District and the Improvement Areas. The boundaries of the District and each of the improvement areas are generally described as follows: All property within the boundaries of Community Facilities District No. 07M (EastLake III - Woods, Vistas and Land Swap Parcel), as shown on a boundary map as previously approved by this legislative body, such map designated by the name of this Community Facilities District, a copy of which is on file in the Office of the City Clerk. The boundary map of the proposed District has been filed 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, at Page 32 of Book 36 of the Book of Maps of Assessment and Community Facilities Districts for such County. SECTION 6. Designation of Improvement Areas. For purposes of financing of, or contributing to the financing of the types of services described in Section 7 below, this City Council, acting Resolution 2002-314 Page 3 pursuant to Government Code Section 53350, hereby designates portions of the District as the following improvement areas as shown on the boundary map of the District: IMPROXtEMENT AREA NO. 1 IMPROVEMENT AREA NO. 2 SECTION 7. Types of Services. It is the intention of this City Council to finance certain services that are in addition to those provided in or required for the territory within the District and will not be replacing services already available. A general description of the services to be provided is as follows: The maintenance of (a) wetlands and landscaped areas within the public fights-of-ways and other public easements throughout the District and (b) facilities that are directly related to storm water quality control throughout the District. Such maintenance shall include, but not be limited to, the provision of all labor, material, administration, personnel, equipment and utilities necessary to maintain such landscaped areas and such storm water quality control facilities. It is the intention of the City Council to finance all direct, administrative and incidental annual costs and expenses necessary to provide the authorized maintenance and services. For a full and complete description of the public services, reference is made to the final Community Facilities District Report, a Copy of which is on file in the Office of the City Clerk. For all particulars, reference is made to such Community Facilities District Report. SECTION 8. Special Tax. Except whore funds am otherwise available special taxes, secured by recordation of a continuing lien against ail non-exempt real property in the respective improvement areas of the District, are hereby authorized, subject to voter approval, to be levied annually within the boundaries of such iDistfict. Under no circumstances will the special tax authorized to be levied within an improvement area be increased as a consequence of delinquency or default by the owner of any other parcel or parcels used for private residential purposes and located within such improvement area by more than 10 percent. For further particulars as to the rate and method of apportionment of the spedal tax proposed to be levied within Improvement Area No. 1, reference is made to the attached and incorporated Exhibit "A", which sets forth in sufficient detail the ~method of apportionment to allow each landowner or resident within such improvement area tO dearly estimate the maximum amount that such person will have to pay for such services. For further particulars as to the rate and method of apportionment of the special tax proposed to be levied within improvement area No. 2, reference is made to the attached and incorporated Exhibit "B", which sets forth in sufficient detail the method of apportionment to allow each landowner or resident within such improvement area to dearly estimate the maximum amount that such person will have to pay for such services. The spedal 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 the District. Resolution 2002-314 Page 4 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 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 legislative body ceases. SECTION 9. 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 the District of the special taxes described in Section 8 above: A. Each such special tax shall be levied for the specific purposes set forth in Section 8 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 8. above. C. The District 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 the District, shall annually file a report with the City Council as required pursuant to Government Code Section 50075.3. SECTION 10. 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 Govemment Code of the State of California, are as follows: Engineering Department City of Chula Vista 276 Fourth Avenue Chula Vista, CA 92010 (619) 691-5021 SECTION 11. Election. This legislative body herewith submits the levy of the special taxes to the qualified electors of each improvement area within the District, such electors being the landowners within each such improvement area with each landowner having one (1) vote for each acre or portion thereof of land which he or she owns within each such improvement area. This legislative body hereby further directs that the separate ballot propositions relating to the levy of the above referenced special taxes within each improvement area be combined and consolidated with the proposition set forth in Section 11 below relating to the establishment of an appropriations limit for the District. The propositions related to the levy of the special taxes shall, together with a proposition to establish an appropriations limit for the District, shall be submitted to the qualified voters at a special election to be held on (a) August 13, 2002 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 Resolution 2002-314 Page 5 special taxes receive the approval of more than two-thirds (2/3) of the votes cast on the proposition, the special tax thereby appro~ved may be levied as provided for in this resolution. SECTION 12. Ballot Proposals. The ballot proposals to be submitted to the qualified voters at the election shall generally be as follows: IMPROVEMENT AREA NO. 1 PROPOSITION A Shall the City of Chula Vista Community Facilities District No. 07M (EASTLAKE III - Woods, Vistas and Land Swap Parcel), subject to accountability measures set forth in Resolution No. 2002-314, levy a special tax throughout Improvement Area No. 1 of such district pursuant to the rate and method of apportionment thereof set forth in such resolution (the "Rate and Method") for the purposes of financing the Special Tax Requirement as defined in the Rate and Method? IMPROVEMENT AREA NO. 2 PROPOSITION B Shall the City of Chula Vista Community Facilities District No. 07M (EASTLAKE III - Woods, Vistas and Land Swap Parcel), subject to accountability measures set forth in Resolution No. 2002-314, levy a special tax throughout Improvement Area No. 2 of such district pursuant to the rate and method of apportionment thereof set forth in such resolution (the "Rate and Method") for the purposes of financing the Special Tax Requirement as defined in the Rate and Method? IMPROVEMENT AREA NOS. 1 AND 2 PROPOSITION C Shall the City of Chula Vista Community Facilities District No. 07M (EastLake III - Woods, Vistas and Land Swap Parcel) establish an Article XIllB appropriations limit equal to $2,000,000? SECTION 13. 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 14. 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: 1. Prepare and furnish to 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 each improvement area of the District. 4. Cause the official ballots to be presented to the qualified electors, as required by law. Resolution 2002-314 Page 6 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. Presented by Approved as to form by J ~)vFKaheny Public Works Director 02fty Attorney Resolution 2002-314 Page 7 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 13th day of August, 2002, by the following vote: AYES: Councilmembers: Davis, Padilla, Rindone, and Salas NAYS: Councilmembers: None ABSENT: Councilmembers: Horton ATTEST: Susan Bigelow, City Cler!~' STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2002-314 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 13th day of August, 2002. Executed this 13th day of August, 2002. Susan Bigelow, City Clerk - EXHIBIT "A" CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 07M (EASTLAKE III - WOODS, VISTAS AND LAND SWAP PARCEL) RATE AND METHOD OF APPORTIONMENT FOR IMPROVEMENT AREA NO. 1 A Special Tax of Community Facilities District No. 07M (Eastlake III Woods, Vistas, and Land Swap Parcel) of the City of Chula Vista ("CFD") shall be levied on all Assessor's Parcels in Improvement Area No. 1 of the CFD and ~ollected each Fiscal Year commencing in Fiscal Year 2002-03 in an amount determined through the application of the rate and method of apportionment of the Special Tax set fortll below. All of the real property in the CFD, 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. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre or Acreage" means the land area of an Assessor's 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 shown on the applicable iFinal Subdivision Map, other final map, other parcel map, other condominium plan, or functionally equivalent map or instrument recorded in the Office of the County Recorder. iT he 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, Part 1, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the actual or estimated costs incurred by the City, acting for and on behalf of the CFD as the administrator thereof, to determine, levy and collect the Special Taxes, 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 CFD; the costs of collecting installments of the Special Taxes; and any other costs required to administer IA No. 1 of the CFD as determined by the City. "Assessor's Parcel" means a lot ~r 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 Assessor of the County designating parcels by assessor's parcel number. "CFI) 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" means Community Facilities District No. 0TM of the City of Chula Vista. "City" means the City of Chula Vista. "City Clerk" means the City Clerk for the City of Chula Vista or his or her designee. "City Manager" means the City Manager for the City of Chula Vista or his or her designee. "Community Purpose Facility Property" or "CPF Property" means all Assessor's Parcels which are classified as community purpose facilities and meet the requirements of City of Chula Vista Ordinance No. 2452. "Council" means the City Council of the City of Chula Vista, acting as the legislative body of the CFD. "County" means the County of San Diego, California. "Developed Property" means all Taxable Property for which a building permit was issued after January 1, 2002, but prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied. "Final Map Property" means a single family residential lot created by a Final Subdivision Map, but which is not classified as Developed Property. "Final Subdivision Map" means a subdivision of property creating buildable lots by recordation ora 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 California Civil Code 1352, that creates individual lots for which building permits may be issued without further subdivision and is recorded prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Improvement Area No. 1" or "IA No. 1" means Improvement Area No. 1 of the CFD, as identified on the boundary map for the CFD. "Land Use Class" means any of the classes listed in Table 1 or Table 2. "Landscape Maintenance" means the labor, material, administration, personnel, equipment and utilities necessary to maintain landscaped areas within the public right-of- ways, parkways, slopes, wetlands and other public easements throughout the CFD. "Landscape Maintenance Requirement" means, for any Fiscal Year in which Special Taxes are levied, the amount equal to the budgeted costs for Landscape Maintenance applicable to IA No. 1 for such Fiscal Year. "Maximum Special Tax" means the maximum Special Tax, determined m accordance with Section C below, that may be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property. "Multi-Family Property" means! all Assessor's Parcels of Developed Property for which a building permit has been issued for a residential structure consisting of two or more residential units that share coounon walls, including, but not limited to, duplexes, triplexes, townhomes, condominiums, and apartment units. "Non-Residential Property" means all Assessor's Parcels of Developed Properly for which a building permit(s) has been issued for a structure or structures for non-residential use, "Operating Fund" means a fund that shall be maintained for IA No. 1 for each Fiscal Year to pay for Landscape Mainlx~nance and Storm Water Quality Maintenance and Administrative Expenses. "Operating Fund Requirement" means, for any Fiscal Year, the sum of the applicable Landscape Maintenance Requirement and the applicable Storm Water Quality Maintenance Requirement. "Other Taxable Property" means, for each Fiscal Year, all Undeveloped Property not classified as Developed Property, Final Map Property, or Taxable Property Owners Association Property. "Property Owner Association PrOperty" means any property within the boundaries IA No. 1 of the CFD that is owned by, or irrevocably dedicated as indicated in an instnunent recorded with the County Recorder to, a property owner association, including any master or sub-association. "Proportionately" means in a manner such that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor's Parcels of Taxable Property within each Land Use Class. "Public Property" means any property within the boundaries of IA No. 1 of the CFD that is, at the time of the CFD formation, expected to be used for any public purpose and is owned by or dedicated to the fed6ral government, the State, the County, the City or any other public agency. "Reserve Fund" means a fund tha~ shall be maintained for IA No. 1 for each Fiscal Year to provide necessary cash flow for the first six months of each Fiscal Year, reserve 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. "Reserve Fund Requirement" means an amount equal to up to 100% of the Operating Fund Requirement for any Fiscal Year. "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit(s) has been issued for purposes of constructing one residential dwelling uuit. "Special Tax" means the Special Tax levied pursuant to the provisions of sections C and D below in each Fiscal Year on each Assessor's Parcel of Developed Property and Undeveloped Property in IA No. 1 to fund thc Special Tax Requirement. "Special Tax Requirement" means that amount required in any Fiscal Year for IA No. 1 to: (a) (i) pay the Landscape Maintenance Requirement; (ii) pay the Storm Water Quality Maintenance Requirement; (iii) pay reasonable Administrative Expenses; (iv) pay any amounts required to establish or replenish the Reserve Fund to the Reserve Fund Requirement; (v) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year; less (b) a credit for funds available to reduce the annual Special Tax levy, including the excess, if any, in the Reserve Fund above the Reserve Fund Requirement. "Square Foot" means the square footage as shown on an Assessor's Parcel's building permit of Residential Property or Multi-Family Property, excluding garages or other structures not used as living space. "State" means the State of California. "Storm Water Quality Maintenance" means the maintenance of detention basins, storm drains, catch basin inserts, hydrodynamic devices, infiltration basins, and all other facilities that are directly related to storm water quality control throughout IA No. 1. "Storm Water Quality Maintenance Requirement" means for any Fiscal Year an amount equal to the budgeted costs for Storm Water Quality Maintenance applicable to IA No. 1 for the current Fiscal Year in which Special Taxes are levied. "Taxable Property" means all of the Assessor's Parcels within the boundaries of IA No. 1 of the CFD that are not exempt from the Special Tax pursuant to law or as defined below. "Tax-Exempt Property" means an Assessor's Parcel not subject to the Special Tax. Tax-Exempt Property includes: (i) Public Property, or (ii) Property Owner Association Property , or (iii) Assessor's Parcels defined as Community Purpose Facility Property that is owned by a non-profit organization and has provided proof to the City prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied of the organization's non-profit status, or (v) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement. "Taxable Property Owner Association Property" means all Property Owner Association Property which is not exempt from the Special Tax pursuant to Section E below. - "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year using the definitions above, all Taxable Property within IA No. 1 of the CFD shall be classified as Developed Property, Final Map Property or Undeveloped Property, and shall be subject to Special Taxes pursuant to Sections C and D below. Developed Property shall be further assigned to a Land Use Class as specified in Table 1. Undeveloped Property shall be further assigned to a Land Use Class as specified in Table 2. Assessor's Parcels of CPF Property not classified as exempt in accordance with Section E below shall be taxed as Non-Residential Property when such Assessor's Parcel is classified as Developed Propeay. If the Assessor's Parcel is Undeveloped it shall be classified as Other Taxable Property. C. MAXIMUM SPECIAL TAX RATE 1. Developed Property TABLE 1 Maximum Special Tax for Developed Property - Community Facilities District No. 07M Improvement Area No. 1 Lan Landscape Storm Maximum d Description I Maintenance Water Quality Special Tax Use Maintenance Clas s 1 Residential Property $0.076 per Scl Ft $0.031 per Sq Ft $0.108 per Sq Ft 2 Multi-Family Property i$0.076 per Sq Ft $0.031 per Sq Ft $0.108 per Sq Ft 3 Non-Residenfial $991.98 per Acre $404.59 per Acre $1,396.57 per Property Acre Multiple Land Use Classes In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Class. The Maximum Special Tax that may be levied on such an Assessor's Parcel shall be the sum of the Maximum Special Tax levies that may be imposed on all Land Use Classes located on that Assessor's Parcel. The CFD Administrator shall determine the allocation to each Land Use Class. 2. Undeveloped Property TABLE 2 Maximum Special Tax for Undeveloped Property Community Facilities District No. 07M Improvement Area No. 1 Land Landscape Storm Maximum Use Description Maintenance Water Quality Special Tax Class Maintenance 4 Final Map Property $991.98 per Acre $404.59 per Acre $1,396.57 per Acm 5 Other Taxable Property $991.98 per Acre $404.59 per Acre $1,396.57 per Acre 6 Taxable Property Owner $991.98 per Acm $404.59 per Acre $1,396.57 per Association Property Acre 3. Annual Escalation of Maximum Special Tax The Maximum Special Tax as shown in the tables above that may be levied on each Assessor's Parcel in IA No. 1 shall be increased each Fiscal Year beginning in Fiscal Year 2003-04 and thereafter by a factor equal to the annual percentage increase, if any, in thc San Diego Metropolitan Area All Urban Consumer Price Index (All Items). D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2002-03, and for each following Fiscal Year, the Council shall levy the IA No. 1 Special Tax at the rates established pursuant to steps 1 through 4 below so that the amount of the Special Tax levied equals thc Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows: First: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property up to 100% of the applicable Maximum Special Tax; Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Final Map Property at up to 100% of thc Maximum Special Tax for Final Map Property; Third: If additional monies are needed to satisfy thc Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Other Taxable Property at up to 100% of the Maximum Special Tax for Other Taxable Property; Fourth: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, the Special Tax shall be levied proportionately on each Assessor's Parcel of Taxable Property Owner Association Property at up to 100% of the Maximum Special Tax for Taxable Property Owner Association Property. Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor's Parcel of Residential Property or Multi-Family Property for which an occupancy permit for private residential use has been issued be increased by more than ten pement annually up to the Maximum Special Tax as a consequence of delinquency or default by the owner of any other Alssessor's Parcel within IA No. 1 of the CFD. E. EXEMPTIONS The CFD Administrator shall classify as exempt property (i) Assessor's Parcels defined as Public Property, (ii) Assessor's Parcels defined as Community Purpose Facility Property that are owned by a non-profit organization which has provided proof to the City prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied of the organization's non-profit status, and (iii) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement. The CFD Administrator shall classify as exempt property those Assessor's Parcels defined as Property Owner's Association Property provided that no such classification would reduce the sum of all taxable Property to less than 346.59 Acres. Assessor's Parcels defined as Property Owner Association Property that cannot be classified as exempt property will be classified as Taxable Property Owner Association Property and shall be taxed as part of the fourth step in Section D. The CFD Administrator will assign Tax-Exempt status in the chronological order in which property becomes exempt. F. APPEALS Any landowner or resident who pays the Special Tax and believes that the amount of the Special Tax levied on their AssessOr's Parcel is in error shall first consult with the CFD Administrator regarding such error. If following such consultation, the CFD Administrator determines that an error has occurred, the CFD Administrator may amend the amount of the Special Tax levied on such Assessor's Parcel. If following such consultation and action, if any by the CFD Administrator, the landowner or resident believes such error still exists, such person may file a written notice with the City Clerk of the City appealing the amount of the Special Tax levied on such Assessor's Parcel. Upon the receipt of any such notice, the City Clerk shall forward a copy of such notice to the City Manager who shall establish as part of the proceedings and administration of the CFD, a special three-member Review/Appeal Committee. The Review/Appeal Committee may establish such procedures, as it deems necessary to undertake the review of any such appeal. The Review/Appeal Committee shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals, as herein specified. The decision of the Review/Appeal Committee shall be final and binding as to all persons. IA No. 1 G. MANNER OF COLLECTION Special Taxes levied pursuant to Section D above shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the CFD Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of IA No. 1 of the CFD or as otherwise determined appropriate by the CFD Administrator. H. TERM OF SPECIAL TAX Taxable Property in IA No. 1 of the CFD shall remain subject to the Special Tax in penpetuity. EXHIBIT B CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 07M (EASTLAKE III - WOODS, VISTAS AND LAND SWAP PARCEL) RATE AND METHOp OF APPORTIONMENT FOR IMPROVEMENT AREA NO. 2 A Special Tax of Community Facilities District No. 07M (Eastlake HI Woods, Vistas and Land Swap Parcel) of the City of Chula Vista ("CFD") shall be levied on all Assessor's Parcels in Improvement Area No. 2 of the CFD and ~ollected each Fiscal Year commencing in Fiscal Year 2002-03 in an amount determined through the application of the rate and method of apportionment of the Special Tax set forth below. All of the real property in the CFD, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided. I. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre or Acreage" means the land area of an Assessor's 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 shown on the applicable Final Subdivision Map, other final map, other parcel map, other condominium plan, or functionally equivalent map or instrument recorded in the Office of the County Recorder.: 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, Part 1, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the actual or estimated costs incurred by the City, acting for and on behalf of the CFD as the administrator thereof, to determine, levy and collect the Special Taxes, 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 CFD; the costs of collecting installments of the Special Taxes; and any other costs required to administer IA No. 2 of 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 Assessor of the County designating parcels by assessor's parcel number. "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" means Community Facilities District No. 07M of the City of Chula Vista. "City" means the City of Chula Vista. "City Clerk" means the City Clerk for the City of Chula Vista or his or her designee. "City Manager" means the City Manager for thc City of Chula Vista or his or her designee. "Community Purpose Facility Property" or "CPF Property" means all Assessor's Parcels which are classified as community purpose facilities and meet the requirements of City of Chula Vista Ordinance No. 2452. "Council" means the City Council of thc City of Chula Vista, acting as the legislative body of the CFD. "County" means the County of San Diego, California. "Developed Property" means all Taxable Property for which a building permit was issued after January 1, 2002, but prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied. "Final Map Property" means a single family residential lot created by a Final Subdivision Map, but which is not classified as Developed Property. "Final Subdivision Map" means a subdivision of property creating 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 California Civil Code 1352, that creates individual lots for which building permits may be issued without further subdivision and is recorded prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Improvement Area No. 2" or "IA No. 2" means Improvement Area No. 2 of the CFD, as identified on the boundary map for the CFD. "Land Use Class" means any of the classes listed in Table 1 or Table 2. "Landscape Maintenance" means the labor, material, administration, personnel, equipment and utilities necessary to maintain landscaped areas within the public right-of- ways, parkways, slopes, wetlands and other public easements throughout the CFD. "Landscape Maintenance Requirement" means, for any Fiscal Year in which Special Taxes are levied, the amount equal to the budgeted costs for Landscape Maintenance applicable to IA No. 2 for such Fiscal Year. "Maximum Special Tax" means ~he maximum Special Tax, determined in accordance with Section C below, that may be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property. "Multi-Family Property" means: all Assessor's Parcels of Developed Property for which a building permit has been issued for a residential structure consisting of two or more residential units that share common walls, including, but not limited to, duplexes, triplexes, townhomes, condominiums, and apartment units. "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. "Operating Fund" means a fund that shall be maintained for IA No. 2 for each Fiscal Year to pay for Landscape Maintenance and Storm Water Quality Maintenance and Administrative Expenses. "Operating Fund Requirement" means, for any Fiscal Year, the sum of the applicable Landscape Maintenance Requirement and the applicable Storm Water Quality Maintenance Requirement. "Other Taxable Property" means, for each Fiscal Year, all Undeveloped Property not classified as Developed Property, Final Map Property, or Taxable Property Owners Association Property. "Property Owner Association Property" means any property within the boundaries IA No. 2 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. "Proportionately" means in a manner such that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor's Parcels of Taxable Property within each Land Use Class. "Public Property" means any property within the boundaries of IA No. 2 of the CFD that is, at the time of the CFD formation, expected to be used for any public purpose and is owned by or dedicated to the federal government, the State, the County, the City or any other public agency. "Reserve Fund" means a fund that shall be maintained for IA No. 2 for each Fiscal Year to provide necessary cash flow for the first six months of each Fiscal Year, reserve 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. "Reserve Fund Requirement" means an amount equal to up to 100% of the Operating Fund Requirement for any Fiscal Year. "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit(s) has been issued for purposes of constructing one residential dwelling unit. "Special Tax" means the Special Tax levied pursuant to the provisions of sections C and D below in each Fiscal Year on each Assessor's Parcel of Developed Property and Undeveloped Property in IA No. 2 to fund the Special Tax Requirement. "Special Tax Requirement" means that amount required in any Fiscal Year for IA No. 2 to: (a) (i) pay the Landscape Maintenance Requirement; (ii) pay the Storm Water Quality Maintenance Requirement; (iii) pay reasonable Administrative Expenses; (iv) pay any amounts required to establish or replenish thc Reserve Fund to the Reserve Fund Requirement; (v) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in thc previous Fiscal Year; less (b) a credit for funds available to reduce the annual Special Tax levy, including thc excess, if any, in the Reserve Fund above the Reserve Fund Requirement. "Square Foot" means the square footage as shown on an Assessor's Parcel's building permit of Residential Property or Multi-Family Property, excluding garages or other structures not used as living space. "State" means the State of California. "Storm Water Quality Maintenance" means the maintenance of detention basins, storm drains, catch basin inserts, hydrodynamic devices, infiltration basins, and all other facilities that are directly related to storm water quality control throughout IA No. 2. "Storm Water Quality Maintenance Requirement" means for any Fiscal Year an amount equal to the budgeted costs for Storm Water Quality Maintenance applicable to IA No. 2 for the current Fiscal Year in which Special Taxes are levied. "Taxable Property" means all of the Assessor's Parcels within the boundaries of IA No. 2 of the CFD that are not exempt from the Special Tax pursuant to law or as defined below. "Tax-Exempt Property" means an Assessor's Parcel not subject to the Special Tax. Tax-Exempt Property includes: (i) Public Property, or (ii) Property Owner Association Property , or (iii) Assessor's Parcels defined as Community Purpose Facility Property that is owned by a non-profit organization and has provided proof to the City prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied of the organization's non-profit status, or (v) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement. - "Taxable Property Owner AssOciation Property" means all Property Owner Association Property which is not e~empt from the Special Tax pursuant to Section E below. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property. J. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year using the definitions above, all Taxable Property within IA No. 2 of the CFD shall be classified as Developed Property, Final Map Property or Undeveloped Property, and shall be subject to Special Taxes pursuant to Sections C and D below. Developed Property shall be further assigned to a Land Use Class as specified in Table 1. Undeveloped Property shall be further assigned to a Land Use Class as specified in Table 2. Assessor's Parcels of CPF Property not classified as exempt in accordance with Section E below shall be taxed as Non-Residential Property when such Assessor's Parcel is classified as Developed Property. If the Assessor's Parcel is Undeveloped it shall be classified as Other Taxable Property. K. MAXIMUM SPECIAL TAX RATE 1. Developed Property TABLE 1 Maximum Specia! Tax for Developed Property Community Facilities District No. 07M Improvement Area No. 2 Lan Landscape Storm Maximum d Description Maintenance Water Quality Special Tax Use I Maintenance Clas s 1 Residential Property 150.056 per Sq Ft $0.014 per Sq Ft $ 0.070 per Sq Ft 2 Multi-Family Property $0.056 per Sq Ft $0.014 per Sq Ft $0.070 per Sq Ft 3 Non-Residential $845.02 per Acre $209.93 per Acre $1,054.95 per Property Acre Multiple Land Use Classes In some instances an AssesSor's Parcel of Developed Property may contain more than one Land Use Class. The Maximum Special Tax that may be levied on such an Assessor's Parcel shall be the sum of the Maximum Special Tax levies that may be imposed on all Land Use Classes located on that Assessor's Parcel. The CFD Administrator shall determine the allocation to each Land Use Class. 2. Undeveloped Property TABLE 2 Maximum Special Tax for Undeveloped Property Community Facilities District No. 07M Improvement Area No. 2 Land Landscape Storm Maximum Use Description Maintenance Water Quality Special Tax Class Maintenance 4 Final Map Property $845.02 per Acre $209.93 per Acre $1,054.95 per Acre 5 Other Taxable Property $845.02 per Acre $209.93 per Acre $1,054.95 per Acre 6 Taxable Property Owner $845.02 per Acre $209.93 per Acre $1,054.95 per Association Property Acre 3. Annual Escalation of Maximum Special Tax The Maximum Special Tax as shown in the tables above that may be levied on each Assessor's Parcel in IA No. 2 shall be increased each Fiscal Year beginning in Fiscal Year 2003-04 and thereafter by a factor equal to the annual percentage increase, if any, in the San Diego Metropolitan Area All Urban Consumer Price Index (All Items). L. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2002-03, and for each following Fiscal Year, the Council shall levy the IA No. 2 Special Tax at the rates established pursuant to steps 1 through 4 below so that the amount of the Special Tax levied equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows: First: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property up to 100% of the applicable Maximum Special Tax; Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Final Map Property at up to 100% of the Maximum Special Tax for Final Map Property; - Third: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Other Ta~able Property at up to 100% of the Maximum Special Tax for Other Taxable Property; Fourth: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, the Special Tax shall be levied proportionately on each Assessor's Parcel of Taxable Property Owner Association Property at up to 100% of the Maximum Special Tax for Taxable Property Owner Association Property. Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor's Parcel of Residential Property or Multi-Family Property for which an occupancy permit for private residential use has been issued be increased by more than ten percent annually up to the Maximum Special Tax as a consequence of delinquency or default by the owner of any other ~ssessor's Parcel within IA No. 2 of the CFD. E. EXEMPTIONS The CFD Administrator shall classify as exempt property (i) Assessor's Parcels defined as Public Property, (ii) Assessor's Parcels defined as Community Purpose Facility Property that are owned by a non-profit organization which has provided proof to the City prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied of the organization's non-profit status, and (iii) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement. The CFD Administrator shall classify as exempt property those Assessor's Parcels defined as Property Owner's Association Property provided that no such classification would reduce the sum of all taxable Property to less than 76.23 Acres. Assessor's Parcels defined as Property Owner Association Property that cannot be classified as exempt property will be classified as Taxable Property Owner Association Property and shall be taxed as part of the fourth step in Section D. The CFD Administrator will assign Tax-Exempt status in the chronological order in which property becomes exempt. F. APPEALS Any landowner or resident who pays the Special Tax and believes that the amount of the Special Tax levied on their Assessor's Parcel is in error shall first consult with the CFD Administrator regarding such error. If following such consultation, the CFD Administrator determines that an error has occurred, the CFD Administrator may amend the amount of the Special Tax levied on such Assessor's Parcel. If following such consultation and action, if any by the CFD Administrator, the landowner or resident believes such error still exists, such person may file a written notice with the City Clerk of the City appealing the amount of the Special Tax levied on such Assessor's Parcel. Upon the receipt of any such notice, the City Clerk shall forward a copy of such notice to the City Manager who shall establish as part of the proceedings and administration of the CFD, a special three-member Review/Appeal Committee. The Review/Appeal Committee may establish such procedures, as it deems necessary to undertake the review of any such appeal. The Review/Appeal Committee shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals, as herein specified. The decision of the Review/Appeal Committee shall be final and binding as to all persons. IA No. 2 M. MANNER OF COLLECTION Special Taxes levied pursuant to Section D above shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the CFD Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet thc financial obligations of IA No. 2 of the CFD or as otherwise determined appropriate by the CFD Administrator. N. TERM OF SPECIAL TAX Taxable Property in IA No. 2 of the CFD shall remain subject to the Special Tax in perpetuity.