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HomeMy WebLinkAboutReso 2003-060RESOLUTION NO. 2003-060 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING ITS INTENTION TO ANNEX TERRITORY INTO COMMUNITY FACILITIES DISTRICT NO. 97-2 AND TO AUTHORIZE THE LEVY OF A SPECIAL TAX THEREIN TO FINANCE CERTAIN SERVICES WHEREAS, the City Council of the City of Chula Vista, California, ("City Council"), formed a 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"). The Community Facilities District has been designated as Community Facilities District No. 97-2 (Preserve Maintenance District) (the "District'); and WHEREAS, the City Council desires to initiate proceedings to consider the annexation of certain real property to the District (the "Territory") and to designate the Territory as Improvement Area C of the District; and WHEREAS, a map entitled "Annexation Map No. 3 to Community Facilities District No. 97-2 (Preserve Maintenance District) City of Chula Vista, County of San Diego, State of California" (the "Annexation Map'') showing the Territory proposed to be annexed to the District has been submitted, which map has been previously approved and a copy of the map shall be kept on file with the transcript of these proceedings; and WHEREAS, this City Council now desires to proceed to adopt its Resolution of Intention to annex the Territory to District, to describe the territory included within District and the Territory proposed to be annexed thereto, to designate the Territory as Improvement Area C of the District, to specify the services to be financed from the proceeds of the levy of special taxes within the Territory, to set and specify the special taxes that would be levied within the Territory to finance such services, and to set a time and place for a public hearing relating to the annexation of the Territory to the District and the levy of special taxes within the Territory. NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: RECITALS SECTION 1. The above recitals are all true and correct. LEGAL AUTHORITY SECTION 2. These proceedings for annexation are initiated by this City Council pursuant to the authorization of the Community Facilities District Law. INTENTION TO ANNEX TERRITORY AND DESIGNATE IMPROVEMENT AREA C; DESCRIPTION OF TERRITORY AND THE DISTRICT Resolution 2003-060 Page 2 SECTION 3. This legislative body hereby determines that the public convenience and necessity requires that the Territory be added to the District and this City Council declares its intention to annex the Territory to the District and to designate the Territory as Improvement Area C of the District. A description of the Territory is as follows: All that property within the Territory proposed to be annexed to the District, as such property is shown on the Annexation Map as previously approved by this legislative body, a copy of which is on file in the Office of the City Clerk and shall remain open for public inspection. A general description of the territory included in the District is hereinafter described as follows: All that property and territory as originally included within the District and as subsequently annexed thereto, as such property was shown on a map of the original District as approved by this City Council and designated by the name of the original District and on Annexation Map Nos. 1 and 2. A copy of such maps are on file in the Office of the City Clerk and have also been filed in the Office of the County Recorder. SERVICES AUTHORIZED TO BE FINANCED BY THE DISTRICT SECTION 4. The services that are authorized to be financed by the District from the proceeds of special taxes levied within the District (the "Services") are generally described in Exhibit A attached hereto and incorporated herein by this reference. The District shall finance all direct, administrative and incidental annual costs and expenses necessary to provide the Services. The Services authorized to be financed by the District from the proceeds of special taxes levied within District are the types of services to be provided in the Territory. If and to the extent possible the Services shall be provided in common within the District and the Territory. SPECIAL TAXES SECTION 5. It is the further intention of this City Council body that, except where funds are otherwise available, a special tax sufficient to pay for the Services 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 the Territory, will be levied annually within the boundaries of such Territory. For further particulars as to the rate and method of apportionment of the proposed special tax, reference is made to Exhibit B (the "Special Tax Formula''), which is attached hereto and incorporated herein by this reference and which sets forth in sufficient detail the method of apportionment of such special tax to allow each landowner or resident within the Territory to clearly estimate the maximum amount that such person will have to pay. 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 Resolution 2003-060 Page 3 through a direct billing procedure by the Treasurer of the City of Chula Vista, acting for and on behalf of the District. 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 Territory 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. No alteration of the special tax rates authorized to be levied within the District shall occur as a result of the annexation of the Territory to the District. PUBLIC HEARING SECTION 6. Notice is given that on March 25, 2003, at the hour of 6:00 p.m., in the regular meeting place of the legislative body, being the Council Chambers, 276 Fourth Avenue, Chula Vista, California, a public hearing will be held where this legislative body will consider the authorization for the annexation of the Territory to the District, the proposed method and apportionment of the special tax to be levied within the Territory and all other matters as set forth in this resolution of intention. At such public hearing, the testimony of all interested persons for or against the annexation of the Territory or the levying of special taxes within the Territory will be heard. At such public hearing, protests against the proposed annexation of the Territory, the levy of special taxes within the Territory or any other proposals contained in this resolution may be made orally by any interested person. Any protests pertaining to the regularity or sufficiency of the proceedings shall be in writing and shall clearly set forth the irregularities or defects to which objection is made. All written protests shall be filed with the City Clerk prior to the time fixed for the public hearing. Written protests may be withdrawn at any time before the conclusion of the public heating. MAJORITY PROTEST SECTION 7. If (a) 50% or more of the registered voters, or six (6) registered voters, whichever is more, residing within the District, Co) 50% or more of the registered voters, or six (6) registered voters, whichever is more, residing within the Territory, (c) owners of one-half or more of the area of land included in the District, or (d) owners of one-half or more of the area of land included in the Territory, file written protests against the proposed annexation of the Territory to the District and such protests are not withdrawn so as to reduce the protests to less than a majority, no further proceedings shall be undertaken for a period of one year from the date of the decision by the City Council on the issues discussed at the public hearing. ELECTION SECTION 8. Upon the conclusion of the public heating, if the legislative body determines to proceed with the annexation, a proposition shall be submitted to the qualified electors of the Territory. The vote shall be by registered voters within the Territory; however, if there are less than 12 registered voters, the vote shall be by landowners, with each landowner having one vote per acre or portion thereof within the Territory. Resolution 2003-060 Page 4 NOTICE SECTION 9. Notice of the time and place of the public hearing shall be given by the City Clerk by publication in a legally designated newspaper of general circulation, said publication pursuant to Section 6061 of the Government Code, with said publication to be completed at least seven (7) days prior to the date set for the public heating. Presented by Approved as to form by ~li~/~/~ wanson7~ John M. Kaheny City Attorney PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 18th day of February, 2003, by the following vote: AYES: Councilmembers: Davis, Rindone, Salas, McCann and Padilla NAYS: Councilmembers: None ABSENT: ATTEST: Councilmembers: None Susan Bigelow, City Clerk 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. 2003-060 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 18th day of February, 2003. Executed this 18th day of February, 2003. Susan Bigelow, City Clerk' Resolution 2003-060 Page 5 CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 97-2, ANNEXATION NO. 3 RATE AND METHOD OF APPORTIONMENT IMPROVEMENT AREA C (Village 11, Brookfidd Shea) A Spedal Tax of Community Facilities District No. 97-2 (Preserve Maintenance District) of the City of Chula Vista ("CFD") shall be levied on all Assessor's Parcds in Improvement Area C of the CFD and collected each Fiscal Year commenting 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 bdow. All of the real properzy 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 herdnafter 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 Spedal 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 rdated to the administration of the CFD; the costs of collecting installments of the Spedal Taxes; and any other costs required to administer Area C 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 offidal map of the Assessor of the County defignating parcels by assessor's parcel number. "Building Square Foot or Square Footage" means the square footage as shown on an Assessor's Parcel's building permit of Residential Property excluding garages or other structures not used as living space. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Spedal Tax Requirement and providing for the levy and collection of the Special Taxes. Resolution 2003-060 Page 6 "CFD" means Community Facilities District No. 97-2 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 Managei' 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 prior to the March 1st preceding the Fiscal Year in which the Spedal 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 single family 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 California Civil Code 1352, that creates individual lots for which building permits may be issued without further subdivision and is recorded prior to March I preceding the Fiscal Year in which the Special Tax is being levied. "Fiscal Year" means the period starting July I and ending on the following June 30. "Improvement Area C" or "Area C" means Improvement Area C of the CFD, as identified on the boundary map for the CFD as amended from time to time. "Land Use Class" means any of the classes listed in Table 1 or Table 2. "Maximum Special Tax" means the maximum Spedal Tax, determined in accordance with Section C below that may be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property. "Non-Residential Property" means all Assessor's Parcels of Devdoped 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 within the CFD for each Fiscal Year to pay for Resource Monitoring and/or Preserve Operations and Maintenance activities and Administrative Expenses. Resolution 2003-060 Page 7 "Operating Fund Balance" means the amount of funds in the Operating Fund at the end of the preceding Fiscal Year. "Operating Fund Requirement" means for any Fiscal Year an amount equal to the Resource Monitoring Fund Requirement and the Preserve Operations and Maintenance Fund Requirement for the current Fiscal Year in which Special Taxes are levied. "Preserve Operations and Maintenance" means those activities described in Attachment A hereto which is incorporated herein by this reference. "Preserve Operations and Maintenance Fund Requirement" means for any Fiscal Year an amount equal to the budgeted costs for Preserve Operations and Maintenance plus a prc~ rata share of the budgeted Administrative Expenses of the District for the current Fiscal Year in which Spedal Taxes are levied. "Property Owner Association Property" means any property within the boundaries Area C of the CFD that is owned by, or irrevocably dedicated as indicated in an instrument recorded with the County Recorder to, a propertyowner assodation, including any master or sub-assodation. "Public Property" means any property within the boundaries of Area C of the CFI) 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 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. "Reserve Fund Balance" means the amount of funds in the Reserve Fund at the end of the preceding Fiscal Year. "Reserve Fund Requirement" means an amount equal to up to 100% of the Operating Fund Requirement for any Fiscal Year. "Residential Properv]" means all Assessor's Parcds of Devdoped Property for which a building permit(s) has been issued for purposes of constructing one or more residential dwelling unit. "Resource Management Plan" means the Otay Ranch Phase 1 Resource Management Plan also referred to as "The Otay Ranch Resource Management Plan" dated 10/28/93 and the Otay Ranch Phase 2, Resource Management Plan dated June 4, 1996, as both such plans may be amended from time to time. "Resource Monitoring Program" means those described in Attachment B hereto which is incorporated herdn by this reference. Resolution 2003-060 Page 8 "Resource Monitoring Fund Requirement" means for any Fiscal Year an amount for each Improvement Area equal to the Improvement Area's fair share of the budgeted costs of the Resource Monitoring Program plus a pro rata share of the budgeted Administrative Expenses of the CFD for the current Fiscal Year in which Spedal Taxes are levied. An Improvement Arm's "fair share" shall be based on the Improvement Area's percentage of the total acreage within the Otay Ranch General Development Plan Planning Area for which a Resource Monitoring Program funding mechanism has been established. "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 Parcd of Devdoped Property and Undevdoped Property in Area C to fund the Special Tax Requirement. "Special Tax Requirement" means that amount required in any Fiscal Year for Area C to: (i) pay the Resource Monitoring Fund Requirement, and Preserve Operations and Maintenance Fund Requirement, less the Operating Fund Balance, and ('fi) pay any amounts required to establish or replenish the Reserve Fund to the Reserve Fund Requirement; Cfii) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Spedal Taxes levied in the previous Fiscal Year. "State" means the State of Califomia~ "Taxable Property" means all of the Assessor's Parcels within the boundaries of Area C of the CFD that are not exempt from the Special Tax pursuant to law or as defined below. "Undevdoped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property. Resolution 2003-060 Page 9 Ce ASSIGNMENT TO CATEGORIES OF SPECIAL TAX Each Fiscal Year using the definitions above, all Taxable Property within Area C of the CFD shall be classified as Category I, Category II, Category III or Exempt. Developed Property, Final Map Property or Undeveloped Property, and shall be subject to Spedal Taxes pursuant to Sections C and D below. Devdoped Property shall be further assigned to a Land Use Class as specified in Table 1. MAXIMUM SPECIAL TAX RATE Category I Category I indudes Developed Property within the District ("Category I'). The Maximum Special Tax for Resource Monitoring, and Preserve Operations and Maintenance that may be levied for Fiscal Year 2002/03 on Developed Property shall be at the rates set forth in Table 1 below. For Residential Property, the Spedal Tax shall be levied based upon Building Square Footage and for Non-Residential Property shall be levied based on Acreage. TABLE 1 Maximum Special Tax for Category I Community Facilities District No. 97-2 Improvement Area C Description Resource Operation & Monitoring Maintenance Residential $0.0054 $0.0086 Non-Residential $87.3126 $138.6152 Category II Category II includes each Assessor's Parcel of Taxable Property within the District for which a Final Map has been recorded, but which is not classified as a Devdoped Parcd ("Category II"). The Maximum Spedal Tax for Resource Monitoring, and Preserve Operations and Maintenance that may be levied for Fiscal Year 2002/03 on each Assessor's Parcel in Category II shall be as shown in Table 2 bdow (said amount to be levied pro rata for any portion of an Acre). TABLE 2 Maximum Special Tax for Category II Community Facilities District No. 97-2 Improvement Area C Resolution 2003-060 Page 10 Resource Monitoring $87.3126 per Acre Operation & Maintenance $138.6152 per Acre Category III Category III includes each Parcel of Taxable Property within the District not subject to Special Tax under any other category ("Category III"). The Maximum Special Tax which may be levied for Fiscal Year 2002/03 on Taxable Property within Category III shall be as shown in Table 3 below (said amount to be levied pro rata for any portion of an Acre). TABLE 3 Maximum Special Tax for Category III Community Facilities District No. 97-2 Improvement Area C Resource Monitoring $56.3516 per Acre Operation & Maintenance $89.4627 per Acre Exempt Category The Exempt Category includes each property owned, conveyed or irrevocably offered for dedication to a public agency, or land which is in the public right-of-way, unmanned utility easements which make utilization for other than the purpose set forth in the easement impractical, common areas, private streets and parks, and open space lots ("Exempt Category"). In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Class. The Maximum Spedal Tax that may be levied on an Assessor's Parcel shall be the sum of the Max/mum Special Tax levies that may be levied on all Land Use Classes located on that Assessor's Parcel. The CFD Administrator's shall determine the allocation to each Land Use Class. 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 Area C shall be increased each Fiscal Year beginning in Fiscal Year 2003-04 and thereafter by a factor equal to the annual percentage change in the San Diego Metropolitan Area all Urban Consumer Price Index (All Items). METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commenting with Fiscal Year 2003-04, and for each following Fiscal Year, the Council shall levy the Area C Spedal Tax at the rates established pursuant to steps 1 through 4 bdow so Resolution 2003-060 Page 11 that the amount of the Spedal Tax levied equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows: Step 1: Determine the revenue which could be generated by Parcels assigned to Category I by multiplying the Building Square Footage for Parcels classified as Residential Parcels by the Maximum Special Tax per Building Square Foot for Resource Monitoring, and Preserve Operations and Maintenance for Parcels and adding to that the maximum revenue which could be generated by multiplying the total acres for Parcels classified as Non-Residential Parcels by the Maximum Special Tax per Acre for Resource Monitoring and Preserve Operations and Maintenance. Step 2: If the total revenue as calculated in Step 1 is greater than the estimated Special Tax Liability for Improvement Area C, reduce the Special Tax for each Parcel proportionately so that the Special Tax levy for the Fiscal Year is equal to the Special Tax Liability for the Fiscal Year. Step 3: If the total revenue as calculated in Step 1 is less than the Special Tax Liability for Improvement Area C, a Special Tax shall be levied upon each Parcel within Improvement Area C, classified as Category II. The Special Tax for Parcels assigned to Category II shall be calculated as the lessor of.' (i) The Special Tax Liability for Improvement Area C as determined by the City, less the total revenue generated for all Parcels under Step 1 above, divided by the total Acres for all Parcels within Improvement Area C assigned to Category II, OR (ii) The Maximum Special Tax rate for Parcels assigned to Category II. Step 4: If the total revenue as calculated in Step 1 and 3 is less than the Special Tax Liability, for Improvement Area C, a Special Tax shall be levied upon each Parcel within Improvement Area C classified as Category IH. The Special Tax for Parcels assigned the Category III shall be calculated as the lessor of: (i) The Special Tax Liability for Improvement Area C as determined by the City, less the total revenue generated for all Parcels under Step 1 and 3 above, divided by the total Acres for all Parcels within Improvement Area C assigned to Category III, OR (ii) The Maximum Special Tax rate for Parcels assigned to Category III and within Improvement Area C. However, in the event it is determined that the Special Tax Liability for Improvement Area C includes delinquent Special Taxes from Parcel in Category III from the prior Resolution 2003-060 Page 12 Fiscal Year, the City shall determine the amount of delinquent taxes that arose from such Parcels and identify the owner(s). The amount of delinquent Special Taxes, if any, that arose from the applicable owner(s) shall first be divided by the total Category III Acres owned by such owner(s) and collected from the applicable owner(s) with the remaining portion of the Special Tax Liability not related to delinquent Special Taxes to be collected from all Parcels in Category III according to the procedure set forth in the preceding paragraph. 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 Assessor's Parcel within Area C of the CFD. 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 Apportionmem 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. 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 va/oron property taxes; provided, however, that the CFD Administrator may directly bill the Special Tax, may collect Spedal Taxes at a different 6me or in a different manner if necessary to meet the financial obligations of Area C of the CFD or as otherwise determined appropriate by the CFD Administrator. TERM OF SPECIAL TAX Taxable Property in Area C of the CFD shall remain subject to the Special Tax m perpetuity. Exhibit A Description of Preserve Operations and Maintenance Preserve Operations and Maintenance includes the maintenance, operation and management of the public or private property within boundaries of the Otay Ranch Preserve, as such boundaries may be modified from time to time, required by the Resource Management Plan to be maintained as open space or habitat preservation land or both. Such maintenance, operations and management shall include, but not be limited to, the following: · Preserve Maintenance. Development, implementation and ongoing provision of programs to maintain, operate and manage preserve habitat values through: cultivation, irrigation, trimming, spraying, fertilizing, and/or treatment of disease or injury; removal of trimmings, rubbish, debris and other solid waste; maintenance of trails; removal and control of exotic plant species (weeds); and control of cowbirds through trapping. · Security. Development, implementation and ongoing provision of security programs to: enforce "no trespassing" roles; curtail activities that degrade resources, such as grazing, shooting, and illegal dumping; remove trash, litter, and other debris; control access; prohibit off-road traffic; and maintain fences and trails. · Preserve improvements: Acquire equipment and/or install improvements necessary to maintain, operate and manage the open space and habitat preservation land described above. The above description of the Preserve Operations and Maintenance is general in nature. The actual maintenance, operations and management of the open space and habitat preservation land within the Otay Ranch Preserve may be modified from time to time as necessary in order to effectively provide such services in compliance with the requirements of the Resource Management Plan. Description of Resource Monitoring Implement the annual biota monitoring and reporting program consistent with the Resource Management Plan to identify changes in the quality and quantity of preserve resources including wildlife species, sensitive plants and sensitive habitat types. The above description of the Resource Monitoring is general in nature. The actual monitoring and reporting program may be modified from time to time as necessary in order to effectively provide such services consistent with the requirements of the Resource Management Plan. "CFD" means Community Facil/ties District No. 97-2 of the City of Chula Vista. "City" means the City of Chula Vista. "City Clerk" means the City Clerk for the City of ChuIa 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 wlfich 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, acni~g as the legislative body of the CFD. "County" means the County of San Diego, Cahfornia. "Developed Property" means all Taxable Property for which a building pern'fit was issued prior to the March 1st preceding the Fiscal Year ha 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 single family 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 condonmfium 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 C" or "Area C" means Improvement Area C of the CFD, as identified on the boundary map for the CFD as amended from time to time. "Land Use Class" means any of the classes hsted in Table 1 or Table 2. "Maximum Special Tax" means the maximum Special Tax, determined in accordance xvith Section C below that may be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property. "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 shah be maintained within the CFD for each Fiscal Year to pay for Resource Monitoring and/or Preserve Operations and Maintenance activities and Administrative Expenses. City o£ Chula Vista CFI) 97-2, Improvement A~ea C, Village 11 (Broolct-leld $1~ea) 2/12/2(g1. Pa~e 2 "Operating Fund Balance" means the amount of funds in the Operating Fund at the end of the preceding Fiscal Year. "Operating Fund Requirement" means for any Fiscal Year an amount equal to the Resource Mordtoring Fund Requirement and the Preserve Operations and Maintenance Fund Requirement for the current Fiscal Year in which Special Taxes are levied. "Preserve Operations and Maintenance" means those activities described in Attachment A hereto which is incorporated herein by this reference. "Preserve Operations and Maintenance Fund Requirement" means for any Fiscal Year an amount equal to the budgeted costs for Preserve Operations and Maintenance plus a pro- rata share of the budgeted Admirfistrative Expenses of the District for the current Fiscal Year in which Special Taxes are levied. "Property Owner Association Property" means any property within the boundaries Area C 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. "Public Property" means any property within the boundaries of Area C 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 Count3,, the City or any other public agency. "Reserve Fund" means a fund that shall be maintained for the CFD each Fiscal Year to provide necessary cash flow for the first slx months of each Fiscal Year, working capital to cover monito£mg, 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 Balance" means the amount of funds in the Reserve Fund at the end of the preceding Fiscal Year. "Reserve Fund Requirement" means an amount equal to up to I00% 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 or more residential dwelling unit. "Resource Management Plan" means the Otay Ranch Phase 1 Resource Management Plan also referred to as "The Otay Ranch Resource Management Plan" dated 10/28/93 and the Otay Ranch Phase 2, Resource Management Plan dated June 4, I996, as both such plans may be amended from time to time. C]O/ o£Cbula Vista 2/12,/20f1,1=?/~/24,~ CFD 97-2, Improvement Area C, Vi~age H (Broo ~kFteld Shea) Page "Resource Monitoring Program" means those described in Attachment B hereto which is incorporated herein by this reference. "Resource Monitoring Fund Requirement" means for any Fiscal Year an amount for each Improvement Area equal to the Improvement Area's fair share of the budgeted costs of the Resource Monitoring Program plus a pro rata share of the budgeted Administrative Expenses of the CFD for the current Fiscal Year in which Special Taxes are levied. An Improvement Area's "fair share" shall be based on the Improvement Area's percentage of the total acreage within the Otay Ranch General Development Plan Planning Area for which a Resource Monitoring Program funding mechanism has been established. "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 Area C to fund the Special Tax Requirement. "Special Tax Requirement" means that amount required in any Fiscal Year for Area C to: (i) pay the Resource Monitoring Fund Requirement, and Preserve Operations and Maintenance Fund Requirement, less the Operating Fund Balance, and (ii) pay any amounts required to establish or replenish the Reserve Fund to the Reserve Fund Requirement; ~fii) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year. "State" means the State of Cahforrfia. "Taxable Property" means all of the Assessor's Parcels within the boundaries of Area C of the CFD that are not exempt from the Special Tax pursuant to law or as del-reed below. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Propert3'. City of Chula Vista CJCD 97-2, Improvement A~ea C, Village 11 (BroolcF~eld Shem) Pa~oe 4 Bo ASSIGNMENT TO CATEGORIES OF SPECIKL TAX Each Fiscal Year using the definitions above, all Taxable Property within Area C of the CFD shall be classified as Category I, Category II, Category III or Exempt. 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. MAXIMUM SPECIAL TAX RATE Category I Category I includes Developed Property within the District ("Category I"). The Maximum Special Tax for Resource Monitoring, and Preserve Operations and Maintenance that may be levied for Fiscal Year 2002/03 on Developed Property shall be at the rates set forth in Table I below. For Residential Property, the Special Tax shall be levied based upon Building Square Footage and for Non-Residential Property shall be levied based on Acreage. TABLE 1 Maximum Special Tax for Category I Community Facilities District No. 97-2 Improvement Area C Description Resource Operation & Monitoring Maintenance Residential $0.0054 $0.0086 Non-Residential $87.3126 $138.6152 Category II Category II includes each Assessor's Parcel of Taxable Property within the District for which a Final Map has been recorded, but which is not classified as a Developed Parcel ("Category II"). The Maximum Special Tax for Resource Monitoring, and Preserve Operations and Maintenance that may be levied for Fiscal Year 2002/03 on each Assessor's Parcel in Catego~] II shall be as shown in Table 2 below (said amount to be levied pro rata for any portion of an Acre). TABLE 2 Maximum Special Tax for Category II Community Facilities District No. 97-2 Improvement Area C Ci0' o£ Ch ula Vis ta 2/12/2 CFD 97-2, Improvement Resource Monitoring Operation & Maintenance $87.3126 per Acre $138.6152 per Acre Category III Category III includes each Parcel of Taxable Property within the District not subject to Special Tax under any other category ("Category III"). The Maximum Special Tax which may be levied for Fiscal Year 2002/03 on Taxable Property within Category III shall be as shown in Table 3 below (said amount to be levied pro rata for any portion of an Acre). TABLE 3 Maximum Special Tax for Category III Community Facilities District No. 97-2 Improvement Area C Resource Monitoring $56.3516 per Acre Operation & Maintenance $89.4627 per Acre Exempt Category The Exempt Categol3~ includes each property owned, conveyed or irrevocably offered for dedication to a public agency, or land which is in the public right-of-way, tmmanned utility easements which make utilization for other than the purpose set forth in the easement impractical, corm:non areas, private streets and parks, and open space lots ("Exempt Category"). 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 an Assessor's Parcel shall be the sum of the Maximum Special Tax levies that may be levied on all Land Use Classes located on that Assessor's Parcel. The CFD Administrator's shall determine the allocation to each Land Use Class. Annual Escalation of Maximum Special Tax The Maximum Special Tax as shown in the tabIes above that may be levied on each Assessor's Parcel in Area C shall be increased each Fiscal Year beginning in Fiscal Year 2003-04 and thereafter by a factor equal to the annual percentage change in the San Diego Metropohtan Area all Urban Consumer Price Index (All Items). D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2003-04, and for each following Fiscal Year, the Council shall levy the Area C Special Tax at the rates established pursuant to steps 1 through 4 below so City o£ Chula Vist'a CFD 97-2, Improvement Area C, Village 11 (Brookfield Shea) Page 6 that the amount of the Special Tax levied equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows: Step 1: Determine the revenue xvkich could be generated by Parcels assigned to Category I by multiplying the Building Square Footage for Parcels classified as Residential Parcels by the MaXanum Special Tax per Building Square Foot for Resource Monitoring, and Preserve Operations and Maintenance for Parcels and adding to that the maXUnum revenue which could be generated by multiplying the total acres for Parcels classified as Non-Residential Parcels by the Maximum Special Tax per Acre for Resource Morfitormg and Preserve Operations and Maintenance. Step 2: If the total revenue as calculated in Step 1 is greater than the estimated Special Tax Liability for Improvement Area C, reduce the Special Tax for each Parcel proportionately so that the Special Tax levy for the Fiscal Year is equal to the Special Tax Liability for the Fiscal Year. Step 3: If the total revenue as calculated in Step 1 is less than the Special Tax Liability for Improvement Area C, a Special Tax shall be levied upon each Parcel within Improvement Area C, classified as Category II. The Special Tax for Parcels assigned to Category II shall be calculated as the lessor of: The Special Tax Liability for Improvement Area C as determined by the City, less the total revenue generated for all Parcels under Step 1 above, divided by the total Acres for all Parcels within Improvement Area C assigned to Category II, OR (ii) The Maximum Special Tax rate for Parcels assigned to Category II. Step 4: If the total revenue as calculated in Step 1 and 3 is less than the Special Tax Liability, for Improvement Area C, a Special Tax shall be levied upon each Parcel ~vithin Improvement Area C classified as Category III. The Special Tax for Parcels assigned the Category III shall be calculated as the lessor of: The Special Tax Liability for Improvement Area C as determined by the City, less the total revenue generated for all Parcels under Step 1 and 3 above, divided by the total Acres for all Parcels within Improvement Area C assigned to Category III, OR The MaXanum Special Tax rate for Parcels as0gned to Category III and xvithin Improvement Area C. However, in the event it is determined that the Special Tax Liability for Improvement Area C includes delinquent Special Taxes from Parcel in Category III from the prior Fiscal Year, Ci(V of Chula Vista CFD 97-2, Impcovement A~ea C, ViSage 11 (Brootc~eld Shea) Page 7 the City shall determine the amount of delinquent taxes that arose from such Parcels and identify the owner(s). The amount of delinquent Special Taxes, if any, that arose from the applicable owner(s) shall first be dix4ded by the total Category III Acres owned by such owner(s) and collected from the applicable owner(s) with the remaining portion of the Special Tax Liability not related to delinquent Special Taxes to be collected from all Parcels in Category III according to the procedure set forth in the preceding paragraph. Notv(~thstanding the above, under no circtm~stances 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 MaXWnum Special Tax as a consequence of delinquency or default by the owner of any other Assessor's Parcel within Area C of the CFD. E. 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 follov(mg 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 for~vard 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 Comm2ttee may establish such procedures, as it deems necessary to undertake the review of any such appeal. The Review/Appeal Comnmttee 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 Comn'nttee shall be £mal and binding as to all persons. 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 ttme or in a different manner if necessary to meet the financial obligations of Area C of the CFD or as otherwise deternm~ed appropriate by the CFD Administrator. TERM OF SPECIAL TAX Taxable Property in Area C of the CFD shall remain subject to the Special Tax in perpetuity. City o£ Cfiula Vista CFD 97-2, Improvement Area C, Vi#age 11 (BrookF~eld Sfiea) P~e 8 Attachment A Description of Preserve Operations and Maintenance Preserve Operations and Maintenance includes the maintenance, operation and management of the public or private property within boundaries of the Otay Ranch Preserve, as such boundaries may be modified from lime to time, requixed by the Resource Management Plan to be maintained as open space or habitat preservation land or both. Such maintenance, operations and management shall include, but not be limited to, the following: · Preserve Maintenance. Development, implementation and ongoing provision of programs to maintain, operate and manage preserve habitat values through: cultivation, irl:lgation, trimming, spraying, fertilizing, and/or treatment of disease or injury; removal of trimmings, rubbish, debris and other solid waste; maintenance of trails; removal and control of exotic plant species (weeds); and control of cowbixds through trapping. · Security. Development, implementation and ongoing provision of security programs to: enforce "no trespassing" rules; curtail activities that degrade resources, such as grazing, shooting, and illegal dumping; remove trash, litter, and other debris; control access; prohibit off-road traffic; and maintain fences and trails. · Preserve irnprovements: Acquire equipment and/or install improvements necessary to maintain, operate and manage the open space and habitat preservation land described above. The above description of the Preserve Operations and Maintenance is general in nature. The actual maintenance, operations and management of the open space and habitat preservation land within the Otay Ranch Preserve may be modified from time to time as necessary in order to effectively provide such services in compliance xvith the requirements of the Resource Management Plan. City o£ Chula Vista CPD 97-2, Improvement A~ea C, Village 11 (BrookF~eld Shea) Pa~e 9 Attachment B Description of Resource Monitoring Implement the annual biota monitoring and reporting program consistent with the Resource Management Plan to identify changes in the quahty and quantity of preserve resources including wildlife species, sensitive plants and sensitive habitat types. The above description of the Resource Monitoring is general in nature. The actual monitoring and reporting program may be modified from 6me to time as necessary in order to effectively provide such services consistent with the requirements of the Resource Management Plan. City o£Cfinla Vista 2/12/~J~J~/Sqv/24Xt.~ CFD 97-2, Improvement Area C, Vi~ge 11 (Bcool~eld Shea) Page