HomeMy WebLinkAboutAgenda Packet 2003/11/11
Notice is hereby given that the Mayor of the City of Chula Vista has called and will CODvene a special meeting
the City Council on Tuesday, November 11, 2003 at 6:00 p.m. to be hel n the City Council Chambers,
ed at 276 Fourth Avenue, Chula Vista, California to consider the item t· age 3.
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CITY OF CHULA VISTA
SPECIAL MEETING OF THE CITY COUNCIL
AGENDA
November 11, 2003
6:00 P.M.
CALL TO ORDER
ROLL CALL: Councilmembers Davis, McCann, Rindone, Salas, and Mayor Padilla
PLEDGE OF ALLEGIANCE TO THE FLAG, MOMENT OF SILENCE
PUBLIC HEARINGS
The following item has been advertised as a public hearing as required by law. If
you wish to speak on the item, please fill out a "Request to Speak" form
(available in the lobby) and submit it to the City Clerk prior to the meeting.
1. CONSIDERATION OF THE FORMATION OF COMMUNITY FACILITIES
DISTRICT NO. 07-1 (OTAY RANCH VILLAGE ELEVEN) AND AUTHORIZATION
TO LEVY SPECIAL TAXES AND TO INCUR A BONDED INDEBTEDNESS
SECURED BY SUCH SPECIAL TAXES (Continued from October 21, 2003)
On September 16, 2003, Council approved the Resolution of Intention to form
Community Facilities District No. 07-1 (CFD 07-1) and the resolution of intention to incur
a bonded indebtedness for CFD 07-1 and set the public hearing for October 21, 2003.
CFD 07-1 will fund the construction of public facilities, such as roadways for Otay Ranch
Village Eleven. In addition, a portion of the proceeds may be used for certain
transportation enhancement projects, as directed by the City. Adoption of the resolutions
continues the formal proceedings leading to the establishment of CFD 07-1 and the
authorization, subject to the approval of the qualified electors, to levy special taxes and to
issue bonds secured by the levy of such special taxes. (Director of Engineering)
Staff recommendation: Council conduct the public hearing and adopt the following
resolutions:
A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
FORMING AND ESTABLISHING COMMUNITY FACILITIES DISTRICT
NO. 07-1 (OTAY RANCH VILLAGE ELEVEN) AND AUTHORIZING
SUBMITTAL OF LEVY OF SPECIAL TAXES TO THE QUALIFIED
ELECTORS THEREOF
B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
DECLARING NECESSITY TO INCUR BONDED INDEBTEDNESS FOR
COMMUNITY FACILITIES DISTRICT NO. 07-1 (OTAY RANCH VILLAGE
ELEVEN), SUBMITTING TO THE QUALIFIED ELECTORS OF SUCH
COMMUNITY FACILITIES DISTRICT SEPARATE PROPOSITIONS TO
AUTHORIZE THE LEVY OF A SPECIAL TAX THEREIN, TO AUTHORIZE
SUCH COMMUNITY FACILITIES DISTRICT TO INCUR A BONDED
INDEBTEDNESS SECURED BY THE LEVY OF SUCH SPECIAL TAX TO
FINANCE CERTAIN TYPES OF PUBLIC FACILITIES AND TO ESTABLISH
AN APPROPRIATIONS LIMIT FOR SUCH COMMUNITY FACILITIES
DISTRICT, AND GIVING NOTICE THEREON
OTHER BUSINESS
2. CITY MANAGER'S REPORTS
3. MAYOR'S REPORTS
4. COUNCIL COMMENTS
ADJOURNMENT to the Regular Meeting of November 18, 2003, at 6:00 p.m. in the Council
Chambers.
Page 2 - Council Agenda I III 1103
NOTICE OF CONTINUATION OF THE PUBLIC HEARING OF
THE CITY COUNCIL OF THE CITY OF CHULA VISTA TO
CONSIDER THE ESTABLISHMENT OF COMMUNITY
FACILITIES DISTRICT NO. 07-1 (OTAY RANCH VILLAGE
ELEVEN) AND THE AUTHORIZATION TO LEVY A
SPECIAL TAX THEREIN
Notice is hereby given of the continuation of the public hearing originally scheduled to be held
on October 21, 2003, at which time the City Council of the City of Chula Vista was to have
heard all evidence and testimony by all interested persons, property owners, voters and
taxpayers, regarding the establishment of proposed Community Facilities District 07-1 (Otay
Ranch Village Eleven), and the rate and method of apportiomnent of the special tax proposed to
be levied within the District. Such hearing has been continued to November II, 2003 at the hour
of 6:00 o'clock p.m. in the regular meeting place of the legislative body, being the Council
Chambers, City Hall, located at 276 Fourth Street, Chula Vista, California.
I declare under penalty of perjury that I am
employed by the City of Chula Vista in the
Office of the City Clerk and that I posted this
~ocument on the bulletin board according to
'3rown Act requ?ments.
nated l¢-r!rb Signed
Notice of Public Heariug - Establishmeut
To be published.
NOTICE OF CANCELLATION
OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that the Public Hearing, originally opened on
October 21, 2003 and continued to November 12, 2003, to consider:
THE FORMATION OF COMMUNITY FACILITIES DISTRICT NO. 07-1 (OTA Y
RANCH VILLAGE ELEVEN) AND AUTHORIZATION TO LEVY SPECIAL
TAXES AND TO INCUR A BONDED INDEBTEDNESS SECURED BY SUCH
SPECIAL TAXES
was cancelled. The public hearing has been rescheduled and duly noticed for the
Special City Council meeting on November 11, 2003 at 6:00 p.m. in the City
Council Chambers, located at 276 Fourth Avenue, Chula Vista, California.
Dated: October 31, 2003
d~, ßMV ~~
Susan Bigelow, CMC, CitY Clerk
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DATED /0/31/03 SIGNED.J;Ýo~
,
Item I
Meeting Date 11/11/03
COUNCIL AGENDA STATEMENT
ITEM TITLE:
Public Hearing to take public testimony on the formation of Community Facilities
District No. 07-1 (Otay Ranch Village Eleven) and to consider the authorization to
levy special taxes and to incur a bonded indebtedness secured by such special
taxes
A) Resolution ofthe City Council ofthe City ofChula Vista, California,
Forming and Establishing Community Facilities District No. 07-1 (Otay Ranch
Village Eleven), Authorizing Submittal of Levy of Special Taxes to the Qualified
Electors thereof
B) Resolution ofthe City Council ofthe City ofChula Vista, Califomia,
Declaring Necessity to incur Bonded Indebtedness for Community Facilities
District No. 07-1 (Otay Ranch Village Eleven), Submitting to the Qualified
Electors Propositions to Authorize the Levy of a Special Tax therein, to Authorize
such Community Facilities District to incur a Bonded Indebtedness Secured by the
Levy of such Special Tax to Finance Types of Public Facilities and to Establish an
Appropriations Limit for such Community Facilities District, and Giving Notice
Thereon
SUBMITTED BY: Director of Engmeeringt/}
& Iv t:'I
REVIEWED BY: City Manager {~\}r' (4/5ths Vote: Yes_NoX)
On September 16, 2003, Council approved the Resolution of Intention to form Community Facilities
District No. 07-1 (CFD-07-I) and the Resolution of Intention to Incur a Bonded Indebtedness of
CFD-07-1 and set the public hearing for October 21, 2003. Following the October Council meeting,
Brookfield Shea Otay, LLC requested that the City Council continue the Public hearing to November 11,
2003. On October 21,2003 the City Council opened the public hearing and directed it to be continued to
November 11,2003.
CFD-07-1 will fund the construction of public facilities, such as roadways for Otay Ranch Village Eleven.
In addition, a portion of the proceeds may be authorized to be used for certain Transportation
Enhancement projects, as directed by the City. Tonight's action will continue the formal proceedings
leading to the establishment of Community Facilities District No. 07-1 and the authorization, subject to the
approval of the qualified electors, to levy special taxes within CFD-07-1 and to issue bonds secured by the
levy of such special taxes.
BOARDS/COMMISSIONS RECOMMENDATION: Not appIicable.
RECOMMENDATION: That Council:
. Open the Hearing, take public testimony, close the public hearing;
I-I
Page 2, Item I
Meeting Date 1i7fiJo3
. Approve the Resolution (A) Forming and Establishing Conununity Facilities District No. 07-1
(Otay Ranch Village Eleven), and Authorizing submittal of Levy of Special Taxes to the
Qualified Electors thereof;
. Approve the Resolution (B) Declaring Necessity to incur Bonded Indebtedness of Conununity
Facilities District No. 07-1 (Otay Ranch Village Eleven), Submitting to the Qualified Electors
Separate Propositions to Authorize the Levy of a special tax therein, to authorize such
Conununity Facilities District to Incur a Bonded Indebtedness Secured by the Levy of a Special
Tax to Finance certain Types of Public Facilities and to Establish an Appropriations Limit for
such Conununity Facilities District, and giving Notice thereon.
DISCUSSION:
Back !round
The public hearing is to be held for the purpose offorming Conununity Facilities District No. 07-1 (Otay
Ranch ViIlage Eleven) and to consider the authorization to levy special taxes and to incur a bonded
indebtedness secured by such special taxes. The Resolution ofIntention to form the district was approved
by City Council on September 16, 2003.
Community Facilities Districts (CFD) provide the necessary funding for the acquisition of public
improvements by levying an annual "special tax", which is collected from the property owners in
conjunction with the property taxes. There is no direct cost to the City. All expenses related to the
district administration (including lev>ying and collecting the special taxes) are funded by the district. The
ultimate security behind the bonds is the property located within the district, not the City's General Fund
or its ability to tax property within its jurisdiction. CFD-07-1 will be formed in conformance with the
"City of Chula Vista Statement of Goals and Policies Regarding the Establishment of Community
Facilities Districts" (CFD Policy) dated December 8. 1998.
District Boundaries
Exhibit I illustrates the amended boundaries ofthe proposed CFD-07-I. The parcels within CFD-07-1 are
owned by the two major builders, Brookfield, Shea or the combined entity: Brookfield Shea Otay LLC.
The Brookfield Shea Otay Village Eleven proj ect area is bounded on the south and east by Hunte Parkway,
a curving arterial from south to northeast, the north edge is formed by Olympic Parkway and to the west is
the extension of the EastLake Parkway.
At buildout, there will be some 1,367 single-family detached residential units, approximately 581 single-
family attached units, 315 multifamily apartment units, and a 10 acre Mixed Use site for Residential and
Conunercial Use, four Parks, two CPF sites and two school sites.
The Improvements
The developer is proposing the financing of backbone Slreets and associated improvements (i.e.,
grading, sewer, streets, landscaping, utilities, etc), and certain "Traffic Enhancement" facilities.
Following is a general description of the proposed facilities:
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Page 3, Item
Meeting Date 11/11/03
· Hunte Parkway
· EastLake Parkway
· Kestral Falls Road
· Hidden Path Drive
· Windingwalk Street
· Discovery Falls Drive
· Birch Road
· Exploration Falls Drive
· Crossroads Street
· Evening Star Street
In addition to the above improvements, this CFD's bonding capacity maybe used for certain "Traffic
Enhancement "facilities within the greater eastern territories of Chula Vista. These transportation
facilities will be traffic capacity adding improvements and could include the following projects:
· Telegraph Canyon Road East of I-80S
· I-80S/Telegraph Canyon Road an additional on-ramp lane to 1-805
· Heritage Road(Olympic Parkway to Main Slreet)
· I-805/H Street additional on-ramp lane to 1-805
In addition to the above facilities, this CFD's bonding capacity maybe used to pay for other facilities to
be financed by any of the Development Impact Programs required to be paid as a condition of approval
of the development of the property within the proposed boundaries of CFD-07-I.
Preliminary estimates show that the maximum tax revenue (using the proposed taxes) from all the taxable
properties would support a total bonded indebtedness of approximately $39 million (assuming a 6.5%
interest rate and a 30-year term on the bonds). Currently the project principal amount ofthe bonds would
amount to $39 million and will finance approximately $3 1.8 million in facilities (i.e. grading,landscaping,
streets, utilities, drainage, sewer, etc). The balance provided would provide for a reserve fund, capitalized
interest and pay district formation and bond issuance costs.
As noted above, it is currently estimated that only $39 million will be available for funding by this dislrict.
However, the dislrict will be sized for $45 million to give the City flexibility in sizing the bonds and to
take advantage oflower interest rates should they occur at the time the bonds are sold. A final priority list
and cost estimates for each of the eligible improvements for CFD-07 - I financing will be brought later to
Council in conjunction with the Acquisition/Financing Agreement and other bond documents.
The City may, in its sole discretion, elect to authorize and make the proceeds of any series of bonds issued
for the District available to pay that portion of the cost of construction or the purchase price for the
acquisition ofImprovements for Traffic Enhancement Facilities which is allocable to the developer. This
could result in the revision of the facilities priority structure for the utilization of such proceeds.
Ultimately, as subdivision exactions, the developer will finance the other required improvements that
CFD-07-1 district cannot finance. In addition, the proposed CFD lies within the City of Chula Vista's
Transportation Development Impact Fee (TDlF) benefit area that places a cap on the CFD's ability to
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Page 4, Item I
Meeting Date 11/11/03
finance certain TDIF improvements. Staff and the consultant team are working with the developer to
maximize the TDIF facilities eligible to be financed by CFD-07-1
The actual amount to be financed by CFD-07-1 would depend upon a number offactors including final
interest rate on the bonds and the value to lien ratio. The bond sale amount and may be higher or less
than the $39 million mentioned above.
Special Tax Report
A copy of the Special Tax Report ("Community Facilities District Report Mello-Roos Community
Facilities Act of 1982 Community Facilities District No. 07-1 for Otay Ranch Village Eleven) prepared by
the Special Tax Consultant, McGill Martin Self, Inc., is included as Exhibit 2, and is on file, and available
for public review in the City Clerk's Office. Said report incorporates the "Rate and Method of
Apportionment" (RMA) (previously approved by Council on September 16,2003), that establishes the
procedures for levying the special taxes in CFD-07-I. The district is divided into the following three
Land Use Class classifications:
Land Use Classes:
I) Applies only to Developed Residential Property with a density between 0 to 8 dwelling units
per gross acre;
2) Applies only to Developed Residential Property with a density between 8 and 20 dwelling
units per gross acre;
3) Applies only to Developed Residential Property with a density above 20 dwelling units
per gross acre; and
4) Applies only to Developed - Non Residential Property.
The proposed Tax Rates are as follows:
. Residential Developed Parcels (single and multi family residences) are based on the project's
overall density. The proposed residential special tax rates are as follows:
Land Use Class 1
Density(DU/
Acre)
o to 8
Maximum Annual Special Tax
Residential Developed Parcels
$1,675 per dwelling Unit
Land Use Class 2
>8 to 20
$1,340 per dwelling Unit
Land Use Class 3
>20
$1,005 per dwelling Unit
At the time the special tax is levied, developed parcels are those parcels for which a building
permit has been issued. This special tax rate has been determined by a preliminary "2%
maximum tax" analysis. Said analysis, which is based on estimated house sizes and prices, sets
the amount of the maximum special tax that may be levied by CFD-07-l on residential parcels. It
should be noted that a final test will be required at escrow closing using actual house sale prices.
1- L/
Page 5, Item I
Meeting Date 11/11/03
If the 2% limit is exceeded, the developer is required to buy down the lien to an amount sufficient
to meet the 2% criteria
· Non-Residential Developed Parcels are taxed based on the acreage of the parcel. The proposed
non-residential special tax rates are as follows:
Commercial Developed Parcels
Maximum Annual Special Tax
Land Use Class 4
$6,000 per acre of Non-Residential Property
At the time the special tax is levied, developed parcels are those parcels for which a building
permit has been issued. In structures thai contain both Residential and Non-Residential Property
(a Mixed Use project), each property would be taxed at its corresponding Land Use Class.
· The Approved Property Land Category means all Assessor's Parcels of Taxable Property: (i)
that are included in an 'A' Map, excluding lettered lots thereon, or a Final Subdivision Map,
excluding lettered lots thereon, that were recorded prior to January 1" for the Fiscal Year
ending July 31, 2005, and prior to March I" for each subsequent Fiscal Year thereafter
preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been
issued a building permit prior to the March 1" preceding the Fiscal Year in which the Special
Tax is being levied. During buildout, the maximum amount of the special taxes that may be
levied on and coIlected from developed properties is not enough to cover the annual debt service
and the approved land taxes will cover the shortfall. The City Administrator will determine
whether an approved land tax is needed to meet the annual debt service. Even if no development
occurs and the whole property remains undeveloped, the proposed special tax rates will generate
enough tax to cover the debt service on the bonds.
There are two tax zone rates for the purpose of having similar density products pay similar
approved Proper1y j ax. ! bese rates are:). 13,955 per Acre tor Zone A and $24,218 per Acre tor
Zone B
· The Undeveloped Land category includes all the parcels for which a building permit has not been
issued. The special tax on Undeveloped Land is based on the total acreage of the parcel. During
buildout, the maximum special tax that may be levied on and collected from developed and
approved properties is not enough to cover the annual debt service and the undeveloped land
special taxes will cover the shortfall. The City Administrator will determine whether an
undeveloped land tax is needed to meet the annual debt service. Even if no development occurs
and the whole property remains undeveloped, the proposed special tax will generate enough
special tax revenue to cover the debt service on the bonds.
There are two tax zone rates for the purpose of having similar density products pay similar
Undeveloped Property rates. These rates are $13,955 per Acre for Zone A and $24,218 per
Acre for Zone B.
1-6'
Page 6, Item
Meeting Date 11/11/03
Collection of Taxes
First, the proposed Assigned Special Tax will be levied on the Developed Property. Second, ifthis pool
of funds is not enough to meet the annual debt service, as may be the case in the early years of
development, the City Administrator will levy a Special Tax on the Approved Property. If additional
monies are needed after the first two steps have been completed, the City Administrator will levy a
Special Tax on the Undeveloped Property, If additional monies are needed after the first three steps the
special tax shall be increased proportionately on each parcel from the Assigned Special Tax up to the
Maximum Annual Special Tax as determined by the application of a Backup Special Tax. If, after these
four steDs are exhausted, there is still a need for additional monies, then the special tax shall be levied
proportionately on each parcel classified as Provisional Undeveloped Property pursuant to Section E in
the RMA from the Assigned Special Tax up to the Maximum Annual Special Tax. After buildout, if
determined by the City Administrator that the annual special tax requirement is less than the special taxes
that may be levied on and collected from the Developed Parcels, the special taxes to be levied in that
specific year will be reduced proportionately. Since residential property in this district is taxed based on
the density of the home and in the event that the developer builds less than projected,. a Backup Special
Tax is calculated for each lot within a Final Subdivision Map as follows:
Zone A
$13,955 x A
B=
------------------------
U
Zone B
$24,218 x A
B=
------------------------
U
The terms above have the following meanings:
B = Backup Special Tax per Dwelling Unit in each Fiscal Year.
A = Acreage classified or to be classified as Residential Property in
such Final Subdivision Map.
U = Number of Dwelling Units in the Final Subdivision Map which are
classified or expected to be classified as Residential Property.
The proposed "Rate and Method" also includes provisions for the prepayment of the special taxes in the
event the developer or a future property owner decides to do so.
Value to Lien Ratio Policy
The CFD Policy requires any bond issue secured by the levy of special taxes be sized based upon a
minimum 4: I value-to-lien ratio. A ratio of less than 4: I, but equal to or greater than 3: 1, may be
)~b
Page 7, Item ,
Meeting Date 11/11/03
approved, in the sole discretion of Council, when it is determined that a ratio ofless than 4: 1 is financially
prudent under the circumstances of a particular District. A final appraisal and lien ratio analysis would be
available for Council consideration prior to bond sale, which is planned for 2004. If the final analysis
shows parcels which fail to meet the 4: 1 or 3: I ratio, the developer would be required to either:
· Provide cash or letters of credit to maintain the value-to-lien ratio within the CFD Policy;
or,
· The principal amount of the bonds to be issued for District will be reduced to comply
with the CFD Policy; or,
· Provide sufficient information to convince Council that a lesser lien ratio is prudent.
Maximum Tax Policy
Council Policy establishes that the maximum annual CFD special taxes applicable to any newly developed
residential property shall be no more than 1% of the sale price of the house. In addition, the aggregate of
all annual taxes and assessments is limited to 2% of the sale price of the house.
A preliminary calculation ofthe maximum tax, using estimated house prices, has been completed and all
homes fall within the 2% limit. A final test will be performed at escrow closing using the actual sale price
of the house. Council Policy requires that at or prior to each closing of escrow, the escrow company shall
apply a "calculation formula" previously approved by the City Engineer to determine the aggregate of
regular County taxes, Mello-Roos taxes, and assessment installments. If the 2% limit were exceeded, the
developer would be required to provide cash to buy down the lien to an amount sufficient to meet the 2%
tax ceiling. Compliance with this procedure would ensure that the aggregate tax to be paid by the
purchaser of the house meets the City's criteria, since the 2% limit is a City policy the limit is not being
included in the rate and method of the district. There is the potential of exceeding the 2% tax ceiling if
housing prices fall after the initial sale.
Resolutions
There are two resolutions on today's agenda that, if adopted, will accomplish the following:
RESOLUTION FORMING AND ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 07-1 is
the formal action forming and establishing Community Facilities District No. 07-I( Otay Ranch Village
Eleven), and authorizing submittal of levy of special taxes to the qualified electors, and performs the
following:
· Sets the name of the District;
· Identifies the Special Tax Report prepared by McGill Martin Self, Inc. as the report to be used
for all future proceedings;
· Establishes a Special Tax by a continuing lien to secure the bonds issued for each Improvement
Area. The Special Tax is set forth in the Rate and Method of Apportionment, which will be
approved by the adoption of this Resolution;
· Implements the provisions of the Local Agency Special Tax and Bond Accountability Act
which became effective on January I, 200 I by specifying that:
. Each special tax shall be levied for the specific purposes set forth in the Resolution.
/-7
·
·
Page 8, Item
Meeting Date 11/11/03
The proceeds of the levy of each such special tax shall be applied only to the specific
applicable purposes set forth in the Resolution.
The District shall establish a separate account into which the proceeds of each such
special tax shall be deposited.
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.
Submits the levy of the special tax to the property owners; and
Describes the type of facilities to be financed by the district.
·
·
·
RESOLUTION DECLARING NECESSITY TO INCUR BONDED INDEBTEDNESS is a fonnal action
submitting to the Qualified Electors of Community Facilities District No. 07-1 (Otay Ranch Village
Eleven), a Proposition to incur a Bonded Indebtedness Secured by the Levy of a Special Tax to Finance
certain types of Public Facilities and perfonns the following:
·
·
·
·
·
·
Notice
Declares that a bond issuance is necessary;
Describes the type of facilities to be financed collectively within the district;.
Limits the bond term to 30 years for each bond issue;
Further implements the provisions of the Local Agency Special Tax and Bond Accountability
Act by specifying that:
· Such bonded indebtedness shall be incurred for the applicable specific single purpose set
forth in the Resolution.
The proceeds of any such bonded indebtedness shall be applied only the applicable
specific purpose identified in the Resolution.
The document or documents establishing the tenns and conditions for the issuance of any
such bonded indebtedness shall provide for the creation of an account into which the
proceeds of such indebtedness shall be deposited.
The City Manager or his or her designee, acting for and on behalf of the District, shall
annuallv file a reDort with this City Council as required bv Government Code Section
53411.
Submits two ballot propositions to the property owners (a) incur a bonded indebtedness not to
exceed $45 million to pay for authorized facilities pursuant to the special tax fonnula and to levy
a special tax, and (b) to establish an appropriations limit for the district; and
Establishes an election procedure.
·
·
·
All property owners within the district (Brookfield, Shea or the combined entity Brookfield Shea Otay
LLC) have been notified ofthe public hearing through the mail as well as a published notice in the Chula
Vista Star News. Notice has also been sent to potential homeowners that the developer has opened
escrows with.
Future Actions
/-'6
Page 9, Item \
Meeting Date 11/11/03
Adoptions of tonight's Resolutions will Form and Establish CFD-07-I, direct staff to prepare the
necessary ballot documents, and to a hold special election on November 12, 2003. On November 18,
2003 the City Council will hear and certify the election results and assuming the ballot measures are
passed by the requisite vote of the qualified electors, have the first reading of the Ordinances to levy
Special Taxes.
FISCAL IMPACT:
There will be no direct fiscal impact to the City. The developer will pay all fonnation costs and has
deposited money to fund initial consultant costs, and City costs in accordance with the approved
Reimbursement Agreement. The City will receive the benefit of the full cost recovery for staff time
involved in district fonnation and administration activities. Staff anticipates that most of the CFD-07-I
administration will be contracted out. The CFD administration cost is estimated at $75,000 annually.
In accordance with the CFO Policy, as consideration for the City's agreement to use the City's bonding
capacity to provide the financing mechanism for the construction of the proposed improvements, the
developer will pay one percent (l %) of the total bond authorization. Said requirement will be
memorialized in the Acquisition/Financing Agreement that will be brought to Council at a later date.
Based on a series of bond sales, in a total aggregate amount of $39 million said monetary compensation
would be $390,000. Roughly half of this amount is associated with the first bond sale (scheduled for
early 2004) and will be deposited into the General Fund. The CFO Policy also stipulates that said
compensation is not eligible for financing by CFO-07-1.
Attachments:
Exhibit 1: Recorded Amended Boundary Map for CFO-07 - 1
Exhibit 2: Special Tax Report: "Community Facilities ~istrict No. 07-1 Otay Ranch Village
Eleven" .
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COMMUNITY FACILITIES DISTRICT
MELLO-ROOS COMMUNITY FACILITIES ACT 1982
SPECIAL TAX REPORT
COMMUNITY FACILITIES DISTRICT NO. 07-1
OTAY RANCH VILLAGE ELEVEN
For the
City of Chula Vista
276 Fourth Avenue
Chu1a Vista, California 91910
~{~
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''': ~~
- ....
CIlY OF
CHUlA VISTA
Prepared by
McGill Martin Self, Inc.
344 F Street
Suite 100
Chula Vista, California 91910
October 1, 2003
1--/1
TABLE OF CONTENTS
Page
I. INTRODUCTION ................................................................................. 1
II. PROJECT DESCRIPTION.................................................................... ..... 1-3
III. DESCRIPTION AND ESTIMATED COST OF PROPOSED FACILITIES.. ........ ......... ..... 4-5
A. Description of Proposed Public Improvements. ...... .......... ......... ......... 4-5
B. Estimated Cost of Proposed Public Improvements .. ... ..... .... ................ 5
IV. BONDED INDEBTEDNESS AND INCIDENTAL EXPENSES.... .......... ..... ....... .......... 5-6
A. Projected Bond Sales .. ..... .......... ............... ........ ....... ................ 5
B. Incidental Bond Issuance Expenses to be Included in the Proposed Bonded
Indebtedness........................................................... .............. 6
C. Incidental Expenses to be Included in the Annual Levy of Special Taxes. 6
V. RATE AND METHOD OF ÅPPORTIONMENTOFTHE SPECIAL TAX ..................... 6-9
A. Explanation for Special Tax Apportionment.................................... 6-7
B. Assigned Special Tax Rates. ...................... ............... .......... 7-8
C. Backup Special Tax ............. .......... ............ ... .................... ...... 8
D. Maximum Annual Special Tax Rate............................................. 8
E. Collection of Taxes. ...... ............ .... ...... .............. ... .... ........... ..... 8-9
F. Accuracy of Information .......... .......... ..... .... ........... .... ........ ....... 9
VI. BOUNDARIES OF COMMUNITY FACILITIES DISTRICT .................................. 9
VII. GENERAL TERMS AND CONDITIONS. . . . . . . . . . . . . . ... .. . .. .. . . .. . .. . .. . . . . . .. . .. . . . .. . . . . .. 9-10
A. Substitution Facilities........................................................... ... 9
B. Transportation Enhancement Facilities........... ......... ........ ......... ..... 9
C. Appeals. ...... .......... ..... .......... ...... ......... ..... ... ... .... ..... ......... ... 9
EXHIBITS
Exhibit A
Exhibit B
Exhibit C
Recorded Boundary Map
Rate and Method of Apportionment
Assigned Special Tax Rates
1-/2
I. INTRODUCTION
WHEREAS, the City of Chula Vista did, pursuant to the provIsion 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 (hereinafter referred to as the "Act"), and
specifically Section 53321.5 thereof, expressly order the filing of a written "CFD Report" with
the legislative body of the proposed Community Facilities District. This Community Facilities
District being Community Facilities District No. 07-1 (Otay Ranch Village Eleven) shall
hereinafter be referred to as:
"CFD-07-1"; and
WHEREAS, the Resolution Ordering and Directing the Preparation of a CFD Report for
Proposed Community Facilities District No. 07-1 (Otay Ranch Village Eleven) did direct that
said CFD Report generally contain the following:
FACILITIES:
A full and complete description of the public facilities the acquisition of
which are proposed to be financed through the CFD.
COST ESTIMATE: A general cost estimate setting forth costs of acquiring such facilities.
SPECIAL TAX:
Further particulars and documentation regarding the rate and method of
apportionment for the authorized special tax.
NOW, THEREFORE, I, Cliff Swanson, the Director of Engineering of the City of Chula Vista,
and the appointed responsible officer directed to prepare this Special Tax Report or cause the
Report to be prepared pursuant to the provisions ofthe Act, do hereby submit this CFD Report.
II. PROJECT DESCRIPTION
This Community Facilities District No. 07-1 (CFD-07-1) encompasses approximately 489 gross
acres of land located in south San Diego County within the City of Chula Vista and is an area
known as "Otay Ranch Village Eleven". Refer to Exhibit A - for a reduced copy ofthe Amended
Recorded Boundary Map. Of this acreage, approximately 229 acres is expected to be developed
by several merchant builders for approximately 2,063 residential attached and detached units
(115 of these will be situated within a mixed use/commercial site), 200 apartments, 10 acres of
commercial development, 9.3 acres for Community Purpose Facilities, 3.0 acres for a Public
Recreation facility, along with approximately 9.9 acres for parks and 38.2 acres designated for an
Elementary and Middle Schools.
The property within Village Eleven, of which is currently owned by Brookfield Homes or Shea
Homes within a combined entity of Brookfield Shea Otay LLC, is bounded on the soutb and east by
Hunte Parkway a curving arterial ftom south to northeast, the north edge is formed by Olympic
Parkway and to the west is the extension of the EastLake Parkway.
1-/3
CFD-07-1 is divided into two tax zones (Zone A and Zone B), for Special Tax allocation
consistency purposes. Refer to Exhibit A for the location of Zones A and B.
Zone A
Zone A consists of Planning Areas R-l through R-16 and R-20 through R-22 and CPF 2. All of
these residential planning areas are anticipated to be either built by Brookfield or Shea
developers. This Tax Zone consists of single family detached and attached units and a
Community Purpose Facility. The following table represents the Residential unit counts in each
planning area.
Zone A
Planning Area
Land Use
Units
R-l
R-2
R-3
R-4
R-5
R-6
R-7
R-8
R-9
R-I0
R-Il
R-12
R-13
R-14
---.--.-- --_.~--_.._-
R-15
R-16
R-20
R-21
R-22
Single Family Detached
Single Family Detached
Single Family Detached
Single Family Detached
Single Family Detached
Single Family Detached
Single Family Detached
Single Family Detached
Single Family Detached
Single Family Detached
Single Family Detached
Single Family Detached
Single Family Detached
Sil1gl¡: l'a.rnilyI:>,etached
Single Family Detached
Single Family Detached
Single Family Detached
Single Family Detached
Single Family Attached
163
47
46
54
34
38
67
58
60
89
34
57
54
54
66
59
67
83
120
At build-out, it is expected that Zone A will consist of approximately 1,130 single family
detached units, 120 single family attached units and a 3.8 acre Community Purpose Facility. The
single family uses are anticipated to generate approximately 2,909,070 square feet of residential
building square footage. The total taxable acreage for this Tax Zone is approximately 163.50
acres.
Community Facilities District No. 07-/
Otay Ranch Village Eleven
Page 2
October I, 2003
/-/'1
Zone B
Zone B consists of Planning Areas R-17 through R-19, R23 through R 25, MU-l, P-l and P-2,
PRF, CPF-l and S-l and S-2. All of these residential planning areas are anticipated to be either
built by Brookfield or Shea developers. This Tax Zone consists of single family detached units,
single family attached units, apartments, a Mixed Use property, two Parks, two Schools, a
Community Purpose Facility and a Public Recreation Facility. The following table represents the
Residential unit counts in each planning area.
Planning Area
Land Use
Units
R-17
R-18
R-19
R-23
R-24
R-25
MU-l
Single Family Detached
Single Family Attached
Single Family Attached
Single Family Detached
Single Family Detached
Apartments
Mixed Use(Residential and
Commercial)
118
125
167
119
169
200
115
At build-out, it is expected that Zone B will consist of approximately 406 single family detached
units, 292 single family attached units, 200 Apartments, a Mixed use property of 10 acres with
commercial property and 115 residential units, an 8.9 and 1.0 acre park, a 26.3 acre elementary
school site, a 11.9 acre middle school site, a 3.0 Public Recreation Facility and a 5.5 acre
Community Purpose Facility. The residential uses are anticipated to generate approximately
1,210,450 square feet at residential buiidmg square footage. The total taxable acreage tor this
Tax Zone is approximately 65.60 acres.
Special taxes for CFD-07-1 (Otay Ranch Village Eleven) for Zone A and Zone B shall be levied
to Taxable Property to satisfy the Special Tax Requirement as follows:
· First, to Developed Property within Zone A and Zone B up to the Maximum Annual Special
Tax;
· Second, if necessary, to Approved Property within Zone A and Zone B up to the Maximum
Annual Special Tax for Approved Property;
· Third, if necessary, to Undeveloped Property within Zone A and Zone B up to the Maximum
Annual Special Tax for Undeveloped Property;
· Fourth, if necessary, the Maximum Annual Special Tax within Zone A and Zone B derived
by the application of the Backup Special Tax increased proportionately from the Assigned
Special Tax up to the Maximum Annual Special Tax and;
· Fifth, if necessary, Special Tax within Zone A and Zone B increased proportionately on all
Provisional Undeveloped Property up to the Maximum Annual Special Tax.
Community Facilities District No. 07-/
Otay Ranch Village Eleven
Page 3
October I, 2003
/-/5
III. DESCRIPTION AND ESTIMATED COST OF PROPOSED FACILITIES
A. Description of Proposed Public Improvements
A community facilities district may provide for the purchase, construction, expansion, or
rehabilitation of any real or tangible property, including public facilities and
infrastructure improvements with an estimated useful life of five (5) years or longer,
which is necessary to meet increased demands placed upon local agencies as a result of
development or rehabilitation occurring within the community facilities district. In
addition, a community facilities district may pay in full all amounts necessary to
eliminate any fixed special assessment liens or to pay, repay, or defease any obligation to
payor any indebtedness secured by any tax, fee, charge, or assessment levied within the
area of the community facilities district.
The facilities described in this CFD Report are all facilities which the legislative body
creating CFD-07 -lis authorized to own, construct, or finance, and which are required, in
part, to adequately meet the needs of CFD-07-I. The approved AcquisitionlFinancing
Agreement sets the priority for the financing of these facilities. In addition, the facilities
meet the criteria for authorized public facilities set forth in the City's Statement of Goals
and Policies regarding the establishment of Community Facilities Districts. The actual
facilities described herein are those currently expected to be required to adequately meet,
in part, the needs of CFD-07-I. Because the actual needs of CFD-07-1 arising as
development progresses therein may differ from those currently anticipated, CFD-07-1
reserves the right to modify the priority of the facilities proposed herein to the extent
CFD-07-1 deems necessary, in its sole discretion to meet those needs.
The Special Taxes required to fund the construction or financing of said facilities will be
apportioncd as described in the Rate dad ¡.,1dhoJ vf r\ppüTtl¡jmllCn~ (rU'\1i\) u[ the
CFD-07-I.
Proceeds of the proposed bonded indebtedness of CFD-07-I will be used to finance
backbone streets and associated improvements (i.e., grading, sewer, streets, landscaping,
utilities, etc.), public facilities, DIP Improvements and Traffic Enhancement Facilities.
Following is a general description of the proposed facilities:
·
Hunte Parkway
EastLake Parkway
Kestral Falls Road
Hidden Path Drive
Windingwalk Street
Discovery Falls Drive
Birch Road
Exploration Falls Drive
·
·
·
·
·
·
·
Community Facilities District No. 07·[
Otay Ranch Village Eleven
Page 4
October J. 2003
1-/0
· Crossroads Street
· Evening Star Street
· Traffic Enhancement Facilities
· Other Facilities to be financed by other Development
Impact Programs
B. Estimated Cost of Proposed Public Improvements
The facilities and the estimated costs herein are subject to review and confirmation. The
costs listed in Table 1 are estimates only, based upon current construction and land costs
and actual costs may differ from those estimates herein.
TABLE!
Proposed Public Facilities
Facility Improvements
Estimated Cost
· Hunte Parkway
· EastLake Parkway
· Kestral Falls Road
· Hidden Path Drive
· Windingwalk Street
· Discovery Falls Drive
· Birch Road
· Exploration Falls Drive
· Crossroads Street
-_._._-~-----.--.-,..-,-,.~----.-.--.------. .------
· Evening Star Street
$ 10,793,176
7,013,620
323,114
1,120,051
2,100,805
913,288
228,420
1,500,537
881,118
-----------
118,095
I
IV. BONDED INDEBTEDNESS AND INCIDENTAL EXPENSES
A. Proiected Bond Sale
Brookfield Shea LLC anticipates a series of bonds to be issued for Zones A and B. The
aggregate amount of bonds for CFD-07-1 will be approximately $39 million, which will
finance approximately $31.8 million in facilities. The first series of bonds are presently
planned to be sold in the spring of 2004. The bonds issued by CFD-07-1 will meet the
terms and conditions of special tax bonds set forth in the City's Statement of Goals and
Policies Regarding the Establishment of Community Facilities Districts.
Community Facilities District No. 07-[
Otay Ranch Village Eleven
Page 5
October I. 2003
1-/7
B. Incidental Bond Issuance Expenses to be included in the Proposed Bonded
Indebtedness for CFD-07-I
Pursuant to Section 53345.3 of the Act, bonded indebtedness may include all costs and
estimated costs incidental to, or connected with, the accomplishment of the purpose for
which the proposed debt is to be incurred, including, but not limited to, the costs of legal,
fiscal, and financial consultant fees; bond and other reserve funds; discount fees; interest
on any bonds of the district due and payable prior to the expiration of one year from the
date of completion of the facilities, not to exceed two years; election costs; and all costs
of issuance of the bonds, including, but not limited to, fees for bond counsel, costs of
obtaining credit ratings, bond insurance premiums, fees for letters of credit, and other
credit enhancement costs, and printing costs. The reserve fund is estimated to be the
maximum allowable under Federal Tax Law. All other incidental bond issuance expenses
are estimated at 4 % of the face amount ofthe bonds.
C. Incidental Expenses to be Included in the Annual Levy of Special Taxes for
CFD-07-I
Pursuant to Section 53340 of the Act, the proceeds of any special tax may only be used to
pay, in whole or part, the cost of providing public facilities, services and incidental
expenses. As defined by the Act, incidental expenses include, but are not limited to, the
cost of planning and designing public facilities to be financed, including the cost of
environmental evaluations of those facilities; the costs associated with the creation of the
district, issuance of bonds, determination of the amount of taxes, collection of taxes,
payment of taxes, or costs otherwise incurred in order to carry out the authorized
purposes of the district; any other expenses incidental to the construction, completion,
and inspection of the authorized work; and the retirement of existing bonded
indebtedness. While the actual cost of administering CFD-07-1 may vary, it is anticipated
th~t the ~mount of s}'eci~1 taxes, which c~n he cnllected. will h" sufficient to fimd ~t least
$75,000 in annual administrative expenses.
V. RATE AND METHOD OF APPORTIONMENT OF THE SPECIAL TAX
All of the property located within CFD-07-1, unless exempted by law, shall be taxed for the
purpose of providing necessary facilities to serve CFD-07-I. Pursuant to Section 53325.3 of the
Act, the tax imposed "is a Special Tax and not a special assessment, and there is no requirement
that the tax be apportioned on the basis of benefit to any property." The Special Tax "may be
based on benefit received by parcels of real property, the cost of making facilities or authorized
services available to each parcel or other reasonable basis as determined by the legislative body,"
although the Special Tax may not be apportioned on an ad valorem basis pursuant to Article
XIIIA of the California Constitution.
As shown in Exhibit B, the Rate and Method of Apportionment (RMA) provides information
sufficient to allow each property owner within CFD-07-1 to estimate the maximum annual
Community Facilities District No. 07-1
Otay Ranch Village Eleven
Page 6
October I, 2003
1- /'i?
Special Tax he or she wilI be required to pay. Sections A through C below, provide additional
information on the Rate and Method of Apportionment (RMA) of the Special Tax for CFD-07-I.
A. Explanation for Special Tax Apportionment
When a community facilities district is formed, a Special Tax may be levied on each
parcel of taxable property within the CFD to pay for the construction, acquisition and
rehabilitation of public facilities, to pay for authorized services or to repay bonded
indebtedness or other related expenses incurred by CFD-07-I. This Special Tax must be
apportioned in a reasonable manner; however, the tax may not be apportioned on an ad
valorem basis.
When more than one type of land use is present within a community facilities district,
several criteria may be considered when apportioning the Special Tax. Generally, criteria
based on building square footage, acreage, and land uses are selected, and categories
based on such criteria are established to differentiate between parcels of property. These
categories are a direct result of the developer's projected product mix, and are reflective
of the proposed land use types within that community facilities district. Specific Special
Tax levels are assigned to each land use class, with alI parcels within a land use class
assigned the same Special Tax rate.
The Act does not require the Special Taxes to be apportioned to individual parcels based
on benefit received. However, in order to insure fairness and equity, benefit principles
have been incorporated in establishing the Special Tax rates for CFD-07-I.
The major assumption inherent in the Special Tax rates set forth in the Rate and Method
of Apportionment is that the level of benefit received from the proposed public
improvements is a function of land use. This assumption is borne out through an
examination of commonly accepted statistical measures.
For example, in measuring average weekday vehicle trip-ends, the Institute of
Transportation Engineer's 1995 Trip Generation report identifies land use as the primary
determinant of trip-end magnitude. Commercial land uses typically generate more trip-
ends than do single family residential land use. Similarly, larger single family detached
dwelIings typically generate a greater number of trip-ends than do smalIer single family
detached homes, and therefore, will tend to receive more benefit from road grading, road
landscaping and road improvements.
Drainage and flood control requirements generally vary with the amount of impervious
ground cover per parcel. It folIows that larger homes which have more impervious
ground cover will create relatively more drainage flow than smaller homes.
Special taxes for CFD-07-1 shall be levied to Taxable Property to satisfy the Special Tax
Requirement as outlined in the RMA for CFD-07-I.
Community Facilities District No. 07-/
Dtay Ranch Village Eleven
Page 7
October I, 2003
/-/9
The Land Use Class Categories of Taxation have been established for CFD-07-1 in the
RMA. The developed residential and non-residential Parcels are taxed as follows:
~ Developed Residential Property (single and multi-family residences) are taxed based
on the density classification as referenced in the RMA for CFD-07-1 ; and
~ Developed Non-Residential Property is taxed based on the acreage of the parcel.
Based on the types of public facilities that are proposed for CFD-07-1 and the factors
described above, the Special Taxes assigned to specific land uses are generally
proportionate to the relative benefits received by them, and, accordingly, the Special
Taxes in CFD-07-1 can be considered fair and reasonable.
B. Assil!ned Special Tax Rates
Exhibit C lists the Assigned Special Tax rates that are proposed to be levied against
Residential Property and Non-Residential Property within CFD-07-I. This is the proposed
Special Tax for Developed Property to meet the debt service obligation to pay for the
Bonds.
C. Backup Special Tax
When a Final Subdivision Map is recorded within CFD-07-1, the Backup Special Tax for
Assessors Parcels of Developed Property classified as Residential Property or Non-
Residential Property will be determined pursuant to Section C.l.b of the RMA. This
Special Tax can be used if the Assigned Special Tax does not cover the current debt
service obligation.
D. Maximum Annual Special Tax Rate
The rh~.r r"~Jncil "'v111 8.tm1J?Hy determi.ne' ~b.c actual amourJ of t1\~ Special 'I':lX levy on
property based on the method described in the RMA's and subject to the Maximum
Annual Special Tax. The Maximum Annual Special Tax Rate for Developed Residential
Property is the greater of the Assigned Special Tax or the Backup Special Tax. The
Maximum Annual Special Tax for Non-Residential, Undeveloped and Provisional
Undeveloped Property is $13,955 per Acre for Zone A and $24,218 per Acre for Zone B.
The City will levy a Special Tax to the extent necessary, sufficient to meet the Special
Tax Requirement.
E. Collection of Taxes
Community Facilities District No. 07-1
O/ay Ranch Village Eleven
Page 8
October J. 2003
j-20
Special taxes for CFD-07-1 (Otay Ranch Village Eleven) for Zones A and B shall be
levied to Taxable Property to satisfy the Special Tax Requirement as follows:
· First, to Developed Property within Zone A and Zone B up to the Maximum Annual
Special Tax;
· Second, if necessary, to Approved Property within Zone A and Zone B up to the
Maximum Annual Special Tax for Approved Property;
· Third, if necessary, to Undeveloped Property within Zone A and Zone B up to the
Maximum Annual Special Tax for Undeveloped Property;
· Fourth, if necessary, the Maximum Annual Special Tax within Zone A and Zone B
derived by the application of the Backup Special Tax increased proportionately from
the Assigned Special Tax up to the Maximum Annual Special Tax and;
· Fifth, if necessary, Special Tax within Zone A and Zone B increased proportionately
on all Provisional Undeveloped Property up to the Maximum Annual Special Ta
F. Accuracv ofInformation
In order to establish the Assigned Special Tax rates and the Backup Special Tax as set
forth in the Rate and Method of Apportionment for CFD-07-1, McGill Martin Self, Inc.
has relied on information including, but not limited to absorption, land-use types,
building square footage, and net taxable acreage which were provided to McGill Martin
Self, Inc. by others. McGill Martin Self, Inc. has not independently verified such data
and disclaims responsibility for the impact of inaccurate data provided by others, if any,
on the Rate and Method of Apportionment for CFD-07-I, including the inability to meet
the financial obligations of CFD-07 - I.
VI. BOUNDARIES OF COMMUNITY FACILITIES DISTRICT
The boundaries ofCFD-07-1 include all land on which the Special Taxes may be levied.
The Recorded Amended Boundary Map of the area included within CFD-07 - I is provided
as Exhibit A.
VII. GENERAL TERMS AND CONDITIONS
A. Substitution Facilities
The description ofthe public facilities, as set forth herein, are general in their nature. The
final nature and location of improvements and facilities will be determined upon the
preparation of final plans and specifications. The final plans may show substitutes, in
lieu or modifications to the proposed work in order to accomplish the work of
improvement, and any such substitution shall not be a change or modification in the
proceedings as long as the facilities provide a service and are of a type substantially
similar to that as set forth in this CFD Report.
B. Transportation Enhancement Facilities
Community Facilities District No. 07-1
Otay Ranch Village Eleven
Page 9
October J. 2003
1-2/
The City may, in its sole discretion, elect to authorize and make the proceeds of any
subsequent series of bonds available to pay the cost of construction or the purchase price
for the acquisition of Improvements for Transportation Enhancement Facilities. This
could result in the revision of the facilities priority structure in the Acquisition and
Financing Agreement for the utilization of such proceeds.
C. Appeals
Any landowner who feels that the amount of the Special Tax is in error may file a notice
with the City Administrator, appealing the levy of the Special Tax pursuant to the
procedure specified in Exhibit B. As appropriate the City Administrator will then review
the appeal and, if necessary, meet with the applicant. If the findings of the City
Administrator verify that the amount of the Special Tax should be modified or changed,
then, as appropriate, the Special Tax levy shall be corrected, pursuant to Section F. of the
RMA.
EXHIBIT A
Community Facilities District No. 07~I
Dtay Ranch Village Eleven
Page JO
October I. 2003
1-22
CITY OF CHULA VISTA
COMMUNITY FACILITIES DISTRICT NO. 07-1
(OTAY RANCH VILLAGE ELEVEN)
RECORDED AMENDED BOUNDARY MAP
EXHIBIT B
Community Facilities District No. 07-1
Otay Ranch Village Eleven
Page II
October J, 2003
/-23
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CITY OF CHULA VISTA
COMMUNITY FACILITIES DISTRICT NO. 07-1
(OTA Y RANCH VILLAGE ELEVEN)
RATE AND METHOD OF APPORTIONMENT
Community Facilities District No. 07-1
Otay Ranch Village Eleven
Page 12
October 1, 2003
/ -26
RATE AND METHOD OF APPORTIONMENT FOR
CITY OF CHULA VISTA
COMMUNITY FACILITIES DISTRICT NO. 07-1
(Otay Ranch Village Eleven)
A Special Tax as hereinafter defined shall be levied on each Assessor's Parcel of Taxable
Property within the City of Chula Vista Community Facilities District No. 07-1 (Otay Ranch
Village Eleven), and collected each Fiscal Year commencing in Fiscal Year 2004-2005 in an
amount determined by the City Council through the application of the appropriate Special Tax
for "Developed Property," "Approved Property", "Undeveloped Property" and "Provisional
Undeveloped Property" as described below. All of the Taxable Property within CFD-07-1, 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 meaning:
'" A' Map" shall mean a master final subdivision or parcel map, filed in accordance with
the Subdivision Map Act and the Chula Vista Municipal Code, which subdivides the land
or a portion thereof shown on a tentative map into "super block" lots corresponding to
units or phasing of combination of units as shown on such tentative map and which may
further show Community Purpose Facility Property, Property Owner Association
Property, Public Property, open space lot dedications, backbone street dedications and
utility easements required to serve such "super block" lots.
"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, parcel map, condominium plan, record of
survey, or other recorded document creating or describing the land area. If the preceding
maps for a land area are not available, the Acreage of such land area shall be determined by
the City bngmeer.
"Act" means the Mel1o-Roos Community Facilities Act of 1982, as amended, being
Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Fees and Expenses" means the actual or reasonably estimated costs
directly related to the administration of CFD-07 - I including, but not limited to, the
fol1owing: the costs of computing the Special Taxes and preparing the annual Special Tax
collection schedules (whether by the City or designee thereof or both); the costs of
collecting the Special Taxes (whether by the County, the City, or otherwise); the costs of
remitting the Special Taxes to the Trustee; the costs of the Trustee (including its legal
counsel) in the discharge of the duties required of it under the Indenture; the costs to the
City, CFD-07-I, or any designee thereof of complying with arbitrage rebate requirements
and/or responding to any audit of the Bonds by the Internal Revenue Service; the costs to
the City, CFD-07 - I, or any designee thereof of providing continuing disclosure; the costs of
the City, CFD-07-1 or any designee thereof of preparing Special Tax disclosure statements
and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD-
City of Chula Vista
Community Facilities District No. 07-1,
Otoy Ranch Village Eleven
I - Z("
1 2-02- 2002
Revise 8-25-03
Page 1
07-1, or any designee thereof related to any appeal of the levy or application of the Special
Tax; and the costs associated with the release of funds from an escrow account, if any.
Administrative Expenses shall also include amounts estimated or advanced by the City or
CFD-07-I, for any other administrative purposes, including, but not limited to attorney's
fees and other costs related to commencing and pursuing to completion any foreclosure of
delinquent Special Taxes.
"Approved Property" means all Assessor's Parcels of Taxable Property: (i) that are
included in an 'A' Map, excluding lettered lots thereon, or a Final Subdivision Map,
excluding lettered lots thereon, that were recorded prior to January 1" for the Fiscal Year
ending July 31, 2005, and prior to March 1" for each subsequent Fiscal Year thereafter
preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not
been issued a building permit prior to the March 1" preceding the Fiscal Year in which the
Special Tax is being levied.
"Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an
assigned Assessor's Parcel number.
"Assessor's Parcel Map" means an official map of the County Assessor of the County
designating parcels by Assessor's Parcel number.
"Assigned Special Tax" means the Special Tax for each Land Use Class of Developed
Property as determined in accordance with Section C.I.a.
"Available Fnnds" means (a)the balance in the reserve fund established pursuant to the
terms of the Indenture in excess of the reserve requirement as defined in such Indenture,
(b)delinquent Special Tax payments not required to fund the Special Tax Requirement for
any preceding Fiscal Year, (c) that portion of Special Tax prepayments allocated to the
payment of interest on Bonds, and (d) other sources of funds available as a credit to the
Special Tax Requirement as specified in such Indenture.
"Backup Special Tax" means the Special Tax as determined in accordance with Section
C.l.b.
"Bonds" means any bonds or other debt (as defined in the Act), whether in one or more
series, issued or incurred by CFD-07 - I under the Act.
"Bond Year" means a one-year period beginning on September 2nd in each year and
ending on September 1" in the following year, unless defined otherwise in the applicable
Indenture.
"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-07-I" means City of Chula Vista Community Facilities District No. 07-1.
City of Chula Vista
Community Facilities District No. 07-1,
Otay Ranch Village Eleven
1-27
J 2-02- 2002
Revise 8-25-03
Page 2
"City" means the City of Chula Vista.
"Community Purpose Facility Property" means all Assessor's Parcels which are (a)
classified as community purpose facilities and meet the requirements of City of Chula Vista
Ordinance No. 2002-2883 as amended on November 5, 2002 or (b) designated on an "A"
Map or a Final Subdivision Map as a community purpose facility.
"Council" means the City Council of the City, acting as the legislative body ofCFD-07-I.
"County" means the County of San Diego.
"Density" means for each Assessor's Parcel of Residential Property the number of
Dwelling Units per gross acre determined pursuant to those provisions of Ordinance No.
2866, in effect as of January 7, 2003, that provide for the calculation of density for
purposes of calculating Transportation Development Impact Fees.
"Developed Property" means all Assessor's Parcels of Taxable Property for which a
building permit has been issued prior to March 1 st preceding the Fiscal Year in which the
Special Tax is being levied.
"Dwelling Unit" means each separate residential dwelling unit that comprises an
independent facility capable of conveyance or rental separate from adjacent residential
dwelling units.
"Exempt Property" means all Assessor's Parcels that are exempt from the Special Tax
pursuant to Section E.l.
"Final Subdivision Map" means a subdivision of property, created by recordation of a
final subdivision map, parcel map or lot line adjustment, approved by the City pursuant to
the Subdivision Map Act (California Government Code Section 66410 et seq.) or
recordation of a condominium rhn rur~1.1ant to California Civil Code 1352, thot creates
individual lots for which residential building permits may be issued without further
subdivision of such property.
"Fiscal Year" means the period starting July 1 and ending on the following June 30.
"Indenture" means the indenture, fiscal agent agreement, trust agreement, resolution or
other instrument pursuant to which Bonds are issued, as modified, amended and/or
supplemented from time to time, and any instrument replacing or supplementing the same.
"Land Use Class" means any ofthe classes listed in Table 1 of Section C.
"Maximum Annual Special Tax" means the maximum annual Special Tax, determined
in accordance with the provisions of Section C, which may be levied in any Fiscal Year on
any Assessor's Parcel of Taxable Property.
City of Chula Vista
Community Facilities District No. 07-1.
Otay Ranch Village Eleven
/-22
12-02- 2002
Revise 8-25-03
Page 3
"Mixed Use Property" means all Assessor's Parcels that have been classified by the City
to allow both Residential Property and Non-Residential Property uses on each such
Assessor's Parcel. For an Assessor's Parcel of Mixed Use Property, each Land Use Class
thereon is subject to taxation pursuant to the provisions of Section C regardless of the
geographic orientation of such Land Use Classes on such Assessor's Parcel.
"Non-Residential Property" means all Assessor's Parcels of Developed Property, for
which a building permit(s) has been issued to allow the construction of one or more
buildings or structures for a non-residential use, excluding Community Purpose Facility
Property.
"Open Space" means property within the boundaries of CFD 07-1 in which prior to June
1st of the preceding Fiscal Year (a) has been designated with specific boundaries and
acreage on an 'A' Map or Final Subdivision Map as open space, (b) is classified by the
County Assessor as open space, (c) has been irrevocably offered for dediçation as open
space to the federal government, the State of California, the County, the City, or any other
public agency or (d) is encumbered by an easement or other restriction required by the
City limiting the use of such property to open space.
"Outstanding Bonds" means all Bonds, which remain outstanding as defined in the
Indenture.
"Property Owner Association Property" means any property within the boundaries of
CFD-07-1 which is (a) owned by a property owner association or (b) is designated with
specific boundaries and acreage on an 'A' Map or Final Subdivision Map as property
owner association property. As used in this definition, a property owner association
includes any master or sub-association.
"Proportionately" means for Developed Property that the ratio of the actual Special Tax
levy to the Assigned Special Tax or the Backup Special Tax is equal for all Assessors'
Parcels of the Developed Property. For Approved Property, Undeveloped Property and
Provisional Undeveloped Property "Proportionately" means that the ratio of the actual
Special Tax levy per Acre to the Maximum Annual Special Tax per Acre is equal for all
Assessor's Parcels of like classification.
"Provisional Undeveloped Property" means all Assessor's Parcels of Public Property,
Property Owner Association Property, Community Purpose Facility Property, Open Space
or other property that would otherwise be classified as Exempt Property pursuant to the
provisions of Section E, but cannot be classified as Exempt Property because to do so
would reduce the Acreage of all Taxable Property below the required minimum acreage as
set forth in Section E.l for Zone A or Zone B as applicable.
"Public Property" means any property within the boundaries of CFD-07-1 which (a) is
owned by a public agency, (b) has been irrevocably offered for dedication to a public
agency or (c) is designated with specific boundaries and acreage on an 'A' Map or Final
Subdivision Map as property which will be owned by a public agency. For purposes of
City of Chula Vista
Community Facilities District No. 07-1,
Otay Ranch Village Eleven
/-2q
/2-02- 2002
Revise 8-25-03
Page 4
this definition, a public agency includes the federal government, the State of California,
the County, the City or any other public agency.
"Residential Property" means all Assessor's Parcels of Developed Property for which a
building permit has been issued to allow the construction of one or more buildings or
structures for use as residential dwelling units.
"Special Tax" means the annual special tax to be levied in each Fiscal Year on each
Assessor's Parcel of Taxable Property to fund the Special Tax Requirement.
"Special Tax Requirement" means that amount of Special Tax revenue required in any
Fiscal Year for to: (i) pay annual debt service on all Outstanding Bonds due in the Bond
Year beginning in such Fiscal Year; (ii) pay other periodic costs on Outstanding Bonds,
including but not limited to, credit enhancement and rebate payment; (iii) pay
Administrative Fees and Expenses; (iv) pay any amounts required to establish or replenish
any reserve funds for all Outstanding Bonds in accordance with the Indenture; and (v) pay
directly for acquisition and/or construction of public improvements which are authorized
to be financed by CFD-07-1 provided that the inclusion of such amount does not cause an
increase in the levy of Special Tax on the Undeveloped Property; less (vi) a credit for
Available Funds.
"State" means the State of California.
"Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD
07-1 that are not exempt from the Special Tax pursuant to law or Section E below.
"Trustee" means the trustee, fiscal agent, or paying agent under the Indenture.
"Undeveloped Property" means, for each Fiscal year, all Taxable Property not classified
as Developed Property, Approved Property or Provisional Undeveloped Property.
"Zone A" means a specific geographic area as depicted in Exhibits A and B attached
hereto.
"Zone B" means a specific geographic area as depicted in Exhibits A and B attached
hereto.
B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, all Assessors' Parcels of Taxable Property within CFD-07-1 shall be (a)
categorized as being located in either Zone A or Zone B, (b) classified as Developed
Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property
and (c) subject to the levy of annual Special Taxes determined pursuant to Sections C and
D below. Developed Property shall be further classified as either Residential Property,
Non-Residential Property or Mixed Use Property. The Land Use Class of each Assessor's
Parcel of Residential Property or Mixed Use Property shall be determined based on its
Density.
City of Chula Vista
Community Facilities District No. 07-1,
Otay Ranch Village Eleven
/-;30
12-02- 2002
Revise 8-25-03
Page 5
C. MAXIMUM ANNUAL SPECIAL TAX RATE
1. Developed Property
The Maximum Annual Special Tax for each Assessor's Parcel of Residential
Property, Non-Residential Property or Mixed Use Property shall be the greater of (1)
the Assigned Special Tax described in Section a. below or (2) the Backup Special
Tax computed pursuant to Section b. below.
a. Assil!ned Special Tax
The Assigned Special Tax for each Land Use Class of Developed Property is
shown in Table 1.
TABLEt
Assigned Special Tax for Developed Property
Within Zone A and Zone B:
Land
Use Description Density Assigned Special Tax
Class (DU/Acre)
1 Residential o to 8 $1,675 per Dwelling Unit
Property
2 Residential >8 to 20 $1,340 per Dwelling Unit
Property
3 Residential >20 $1,005 per Dwelling Unit
Property
4 Non N/A $6,000 per Acre
R"sià"ntiai
Property
The Assigned Special Tax for each Assessor's Parcel of Mixed Use Property
shall equal the total of (i) the Assigned Special Tax that would be applicable to
such Assessor's Parcel if it was classified only as Residential Property and (ii)
the Assigned Special Tax that would be applicable to such Assessor's Parcel if
it was classified as Non-Residential Property.
b. Backup Special Tax
When a Final Subdivision Map is recorded within Zone A or Zone B, the Backup
Special Tax for Residential Property and Non-Residential Property, shall be
determined as follows:
City of Chula Vista
Community Facilities District No. 07-1,
Olay Ranch Village Eleven
1-3/
12-02- 2002
Revise 8-25-03
Page 6
For each Assessor's Parcel of Residential Property or Undeveloped Property and
Approved Property to be classified as Residential Property upon its development
within the Final Subdivision Map area, the Backup Special Tax shall be the rate per
Dwelling Unit calculated according to the following formula:
Zone A
$13,955 x A
B=
------------------------
U
Zone B
$24,218 x A
B=
------------------------
U
The terms above have the following meanings:
B = Backup Special Tax per Dwelling Unit in each Fiscal Year.
A = Acreage classified or to be classified as Residential Property in
such Final Subdivision Map.
U = Number of Dwelling Units in the Final Subdivision Map which are
classified or expected to be classified as Residential Property.
For each Assessor's Parcel of Developed Property classified as Non-Residential Property
or for each Assessor's Parcel of Approved or Undeveloped Property to be classified as
Non-Residential Property within the Final Subdivision Map area, the Backup Special Tax
shall be determined by multiplying $13,955 for Zone A and $24,218 for Zone B by the
total Acreage of~my s11<:n Assessor's Parcel.
For each Assessor's Parcel of Mixed Use Property, the Backup Special Tax shall be
determined by multiplying $13,955 for Zone A and $24,2l8for Zone B by the total
Acreage of any such Assessor's Parcel.
Notwithstanding the foregoing, if Assessor's Parcels of Residential Property, Non-
Residential Property, Mixed Use Property, Approved Property or Undeveloped Property
for which the Backup Special Tax has been determined are subsequently changed or
modified by recordation of a new or amended Final Subdivision Map, then the Backup
Special Tax applicable to such Assessor's Parcels shall be recalculated to equal the
amount of Backup Special Tax that would have been generated if such change did not take
place.
City ofChula Vista
Community Facilities District No. 07-1,
Otay Ranch Village Eleven
/-3
12-02- 2002
Revise 8-25-03
Page 7
2. Approved Property
The Maximum Annual Special Tax for each Assessor's Parcel of Approved Property shall
be $13,955 per Acre for Zone A and $24,218 per Acre for Zone B.
3. Undeveloped Property and Provisional Undeveloped Property
The Maximum Special Tax for each Assessor's Parcel of Undeveloped Property and
Provisional Undeveloped Property shall be $13,955 per Acre for Zone A and $24,218 per
Acre for Zone B.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2004-2005 and for each following Fiscal Year, the Council
shall determine the Special Tax Requirement and shall levy the Special Tax until the
amount of Special Taxes 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 all Developed Property at a rate
up to 100% ofthe applicable Assigned Special Tax to satisfy the Special Tax Requirement.
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 all
Approved Property at up to 100% of the Maximum Annual Special Tax for Approved
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 all
Undeveloped Property within Zone A and Zone B, at a rate up to 100% of the Maximum
Annual Special Tax for Undeveloped Property. In determining the Acreage of an
Assessor's Parcel of Undeveloped Property for purposes of determining the annual Special
Tax to be levied on such Assessor's Parcels of Undeveloped Property, the CFD
Administrator shall not include any Acreage shown on any applicable tentative subdivision
map or other land use entitlement approved by the City that designates such Acreage for a
use that would be classified as Open Space, Property Owner Association Property,
Community Purpose Facility or Public Property.
Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the
first three steps have been completed, the Special Tax to be levied on each Assessor's
Parcel of Developed Property whose Maximum Annual Special Tax is derived by the
application of the Backup Special Tax shall be increased Proportionately from the
Assigned Special Tax up to the Maximum Annual Special Tax for each such Assessor's
Parcel.
City of Chula Vista
Community Facilities District No. 07-/,
Otay Ranch Village Eleven
1-;:33
/2-02- 2002
Revise 8-25-03
Page 8
Fifth: If additional monies are needed to satisfy the Special Tax Requirement after the first
four steps have been completed, then the Special Tax shaIl be levied Proportionately on all
Provisional Undeveloped Property at a rate up to 100% of the Maximum Annual Special
Tax for Undeveloped Property.
Notwithstanding the above, under no circumstances wiIl the Special Tax levied against any
Assessor's Parcel of Residential Property be increased by more than ten percent per year as
a consequence of delinquency or default in the payment of Special Taxes by the owner of
any other Taxable Property.
E. EXEMPTIONS
1. The CFD Administrator shaIl classify the foIlowing as Exempt Property: (i)
Public Property, (ii) Property Owner Association Property, (iii) Community
Purpose Facility Property, (iv) Open Space and (v) Assessor's Parcels with public
or utility easements making impractical their utilization for other than the
purposes set forth in the easement; provided, however, that no such classification
shaIl reduce the sum of all Taxable Property to less than 147.15 Acres for Zone A
and 59.04Acres for Zone B. Assessor's Parcels which cannot be classified as
Exempt Property because such classification would reduce the Acreage of all
Taxable Property to less than 147.15 Acres for Zone A and 59.04 Acres for Zone
B wiIl be classified as Provisional Undeveloped Property and shaIl be taxed
pursuant to the fifth step of Section D. Exempt status for purposes of this
paragraph wiIl be assigned by the CFD Administrator in the chronological order
in which property becomes Exempt Property. In the event the Taxable Property
wiIl be reduced below the minimum Acreage noted above for either Zone A or
Zone B as a result of the recordation of a single "A" Map, the CFD Administrator
shaIl classify property within Zone A or Zone B that is shown on such "A" Map
as Exempt Property up to the limits of Exempt Property applicable to such Zone
or Zones in the foIlowing priority order: 1) Community Purpose Facility Property,
')\ Prnperty Owr1PrA..~'ociqti(1n Property, 3) Public Property, <1) 0rcn Sp"C0, ~)
other public or utility easements making impractical their utilization for no other
such purpose.
2. The Maximum Annual Special Tax obligation for any property which would be
classified as Public Property upon its transfer or dedication to a public agency but
which is classified as Provisional Undeveloped Property pursuant to E.l above
shaIl be prepaid in fuIl by the seIler pursuant to Section H.l, prior to the
transfer/dedication of such property to such public agency. Until the Maximum
Annual Special Tax obligation for any such Public Property is prepaid, the
property shaIl continue to be subject to the levy of the Special Tax as Provisional
Undeveloped Property.
3. If the use of an Assessor's Parcel of Exempt Property changes so that such
Assessor's Parcel is no longer classified as one of the uses set forth in paragraph 1
that would make such Assessor's Parcel eligible to be classified as Exempt
City of Chula Vista
Community Facilities District No. 07-1,
Otay Ranch Village Eleven
I -34-
12-02- 2002
Revise 8-25-03
Page 9
Property, such Assessor's Parcel shall cease to be classified as Exempt Property
and shall be deemed to be Taxable Property.
F. REVIEW/APPEAL COMMITTEE
Any landowner or resident who feels that the amount of the Special Tax levied on their
Assessor's Parcel is in error shall first consult with the CFD Administrator regarding such
error. If following such consultation, the CFD Administrator determines that an error has
occurred the CFD Administrator 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 stilI 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 CFD-07-1 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.
G. MANNER OF COLLECTION
The annual Special Tax shall be collected in the same manner and at the same time as
ordinary ad valorem property taxes; provided. however, that CFD-07-T. may directly bill
the Special Tax, may collect Special Taxes at a different time or in a different manner if
necessary to meet its financial obligations, and may covenant to foreclose and may actually
foreclose on Assessor's Parcels of Taxable Property that are delinquent in the payment of
Special Taxes.
Tenders of Bonds in prepayment of Maximum Annual Special Taxes may be accepted
upon the terms and conditions established by the Council pursuant to the Act. However,
the use of Bond tenders shall only be allowed on a case-by-case basis as specifically
approved by the Council.
H. PREPAYMENT OF SPECIAL TAX
The following definitions apply to this Section H:
"CFD Public Facilities" means those public facilities authorized to be financed by CFD-
07-1.
City of Chula Vista
Community Facilities District No. 07-1,
Otay Ranch Village Eleven
1-35
12-02- 2002
Revise 8-25-03
Page 10
"CFD Public Facilities Costs" means either $35 million, or such lower number as shall be
determined either by (a) the CFD Administrator as sufficient to finance the CFD Public
Facilities, or (b) the Council concurrently with a covenant that it will not issue any more
Bonds to be secured by Special Taxes levied under this Rate and Method of
Apportionment.
"Construction Fund" means an account specifically identified in the Indenture to hold
funds which are currently available for expenditure to acquire or construct the CFD Public
Facilities.
"Future Facilities Costs" means the CFD Public Facilities Costs minus that (a) portion of
the CFD Public Facilities Costs previously funded (i) from the proceeds of all previously
issued Bonds, (ii) from interest earnings on the Construction Fund actually earned prior to
the date of prepayment and (iii) directly from Special Tax revenues and (b) the amount of
the proceeds of all previously issued Bonds then on deposit in the Construction Fund.
"Outstanding Bonds" means all previously issued Bonds which will remain outstanding
after the first interest and/or principal payment date following the current Fiscal Year,
excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of
Maximum Annual Special Taxes.
1. Prepayment in Full
The Maximum Annual Special Tax obligation may only be prepaid and permanently
satisfied for an Assessor's Parcel of Developed Property, Undeveloped Property or
Approved Property for which a building permit has been issued, or Provisional
Undeveloped Property. The Maximum Annual Special Tax obligation applicable to such
Assessor's Parcel may be fully prepaid and the obligation ofthe Assessor's Parcel to pay the
Special Tax permanently satisfied as described herein; provided, however that a prepayment
mav be made only if there are no delinquent S)'eci".l T".xes with respect to such !\ssessnr',
Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the
Maximum Annual Special Tax obligation shall provide the CFD Administrator with written
notice of intent to prepay. Within 30 days of receipt of such written notice, the CFD
Administrator shall notifY such owner of the prepayment amount of such Assessor's Parcel.
The CFD Administrator may charge a reasonable fee for providing this figure, which can be
collected prior to preparing such calculation.
The prepayment amount shall be calculated as summarized below (capitalized terms as
defined below):
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Prepayment Fees and Expenses
City of Chula Vista
Community Facilities District No. 07-1,
Otay Ranch Village Eleven
/-3",
12-02- 2002
Revise 8-25-03
Pa?;e 1 J
less
less
equals
Reserve Fund Credit
Capitalized Interest Credit
Prepayment Amount
As of the proposed date of prepayment, the Prepayment Amount (defined below) shall be
calculated as follows:
Step No.:
I. For Developed Property, compute the Maximum Annual Special Tax for the
Assessor's Parcel to be prepaid. For Assessor's Parcels of Approved Property or
Undeveloped Property to be prepaid, compute the Maximum Annual Special Tax for
that Assessor's Parcel as though it was already designated as Developed Property,
based upon the building permit issued for that Assessor's Parcel. For Assessor's
Parcels of Provisional Undeveloped Property to be prepaid, compute the Maximum
Annual Special Tax for that Assessor's Parcel using the Maximum Annual Special
Tax for Provisional Undeveloped Property.
2. Divide the Maximum Annual Special Tax computed pursuant to step 1 by the sum of
the total expected Maximum Annual Special Tax revenues which may be levied
within CFD-07-T excluding ~ny Assessors Parcels for which the Maximum Annual
Special Tax obligation has been previously prepaid.
3. Multiply the quotient computed pursuant to step 2 by the principal amount of the
Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and
prepaid (the "Bond Redemption Amount").
4. Multiply the Bond Redemption Amount computed pursuant to step 3 by the
applicable redemption premium(s) on the next possible Bond call date, if any, on the
Outstanding Bonds to be redeemed (the "Redemption Premium").
5. If all the Bonds authorized to be issued by CFD-07-1 have not been issued, then
compute the Future Facilities Costs.
6. Multiply the quotient computed pursuant to step 2 by the amount if any, determined
pursuant to step 5 to compute the amount of Future Facilities Costs to be allocated to
such Assessor's Parcel (the "Future Facilities Amount').
City of Chula Vista
Community Facilities District No. 07-1,
Otay Ranch Village Eleven
1-'37
12-02- 2002
Revise 8-25-03
Page 12
7. Compute the amount needed to pay interest on the Bond Redemption Amount from
the first bond interest and/or principal payment date following the current Fiscal Year
until the earliest redemption date for the Outstanding Bonds.
8. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel.
9. Determine the Special Taxes levied on the Assessor's Parcel in the current Fiscal
Year, which have not yet been paid.
10. Determine the fees and expenses ofCFD-07-1, including but not limited to, the costs
of computation of the prepayment, the costs to invest the prepayment proceeds, the
costs of redeeming Bonds from the proceeds of such prepayment, and the cost of
recording any notices to evidence the prepayment and the redemption
(the"Prepayment Fee and Expenses").
11. Compute the amount the CFD Administrator reasonably expects to derive from the
reinvestment of the prepayment amount, less the Prepayment Fees and Expenses,
pursuant to step 10, from the date of prepayment until the redemption date for the
Outstanding Bonds to be redeemed with the prepayment.
12. Add the amounts computed pursuant to steps 7 and 9 and subtract the amount
computed pursuant to step 11 (the "Defeasance Amount").
13. The reserve fund credit (the "Reserve Fund Credit") shall equal the lesser of: (a) the
expected reduction in the reserve requirement (as defined in the Indenture), if any,
associated with the redemption of Outstanding Bonds as a result of the prepayment,
or (b) the amount derived by subtracting the new reserve requirement (as defined in
the Indenture) in effect after the redemption of Outstanding Bonds as a result of the
prepayment from the balance in the reserve fund on the prepayment date, but in no
pv~nt c:l1Ql1 ';me}, ":1mount he 1ess thaf1. 7~T0
14. If any capitalized interest for the Outstanding Bonds will not have been expended at
the time ofthe first interest payment following the current Fiscal Year, a capitalized
interest credit shall be calculated by multiplying the quotient computed pursuant to
step 2 by the expected balance in the capitalized interest fund after such first interest
payment (the "Capitalized Interest Credit").
15. The Maximum Annual Special Tax prepayment is equal to the sum of the amounts
computed pursuant to steps 3, 4, 6, 10, and 12, less the amounts computed pursuant to
steps 13 and 14 (the "Prepayment Amount").
16. From the Prepayment Amount, the amounts computed pursuant to steps 3, 4, 12, 13
and 14 shall be deposited into the appropriate fund as established under the Indenture
and be used to retire Outstanding Bonds or make debt service payments. The amount
computed pursuant to step 10 shall be retained by CFD-07-I. The amount computed
pursuant to step 6 shall be deposited in the Construction Fund.
City ofChula Vista
Community Facilities District No. 07-1.
Otay Ranch Village Eleven
1-38
12-02- 2002
Revise 8-25-03
Page 13
The prepayment amount may be sufficient to redeem other than a $5,000 increment of
Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be
retained in the appropriate fund established under the Indenture to be used with the next
prepayment of bonds or to make debt service payments.
As a result of the payment of the current Fiscal Year's Special Tax levy as determined
under step 9 above, the CFD Administrator shall remove the current Fiscal Year's Special
Tax levy for such Assessor's Parcel from the County tax rolls. With respect to any
Assessor's Parcel that is prepaid, the Council shall cause a suitable notice to be recorded in
compliance with the Act, to indicate the prepayment of Special Taxes and the release of the
Special Tax lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to
pay the Special Tax shall cease.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the
amount of Maximum Annual Special Taxes that may be levied on Taxable Property within
both prior to and after the proposed prepayment is at least 1.1 times the maximum annual
debt service on all Outstanding Bonds.
2. Prepayment in Part
The Maximum Annual Special Tax on an Assessor's Parcel of Developed Property or an
Assessor's Parcel of Approved Property or Undeveloped Property for which a building
permit has been issued may be partially prepaid. The amount of the prepayment shall be
calculated as presented in Section H.l; except that a partial prepayment shall be calculated
according to the following formula:
PP = (PE X F) + A
These terms have the following meaning:
PP = the partial prepayment
PE = the Prepayment Amount calculated according to Section H.1, minus Prepayment Fees
and Expenses determined pursuant to step 10.
F = the percent by which the owner of the Assessor's Parcel(s) is partially prepaying the
Maximum Annual Special Tax.
A= the Prepayment Fees and Expenses determined pursuant to step 10.
The owner of an Assessor's Parcel who desires to partially prepay the Maximum Annual
Special Tax shall notifY the CFD Administrator of (i) such owner's intent to partially
prepay the Maximum Annual Special Tax, (ii) the percentage by which the Maximum
Annual Special Tax shall be prepaid, and (iii) the company or agency that will be acting as
the escrow agent, if applicable. The CFD Administrator shall provide the owner with a
statement of the amount required for the partial prepayment of the Maximum Annual
Special Tax for an Assessor's Parcel within 30 days of the request and may charge a
reasonable fee for providing this service.
City of Chula Vista
Community Facilities District No. 07-/,
Otay Ranch Village Eleven
1-39
/2-02- 2002
Revise 8-25-03
Page I4
With respect to any Assessor's Parcel that is partially prepaid, the City shall (i) distribute
the funds remitted to it according to step 16 of Section H.l, and (ii) indicate in the records
of CFD-07-1 that there has been a partial prepayment ofthe Maximum Annual Special Tax
and that a portion of the Maximum Annual Special Tax equal to the outstanding percentage
(1.00 - F) of the remaining Maximum Annual Special Tax shall continue to be authorized
to be levied on such Assessor's Parcel pursuant to Section D.
I. TERM OF MAXIMUM ANNUAL SPECIAL TAX
The Maximum Annual Special Tax shall be levied commencing in Fiscal Year 2004-2005
to the extent necessary to fully satisfy the Special Tax Requirement and shall be levied for
a period no longer than the 2043-2044 Fiscal Year.
City of Chula Vista
Community Facilities District No. 07-1,
Otay Ranch Village Eleven
/-'/0
12-02- 2002
Revise 8-25-03
Page 15
EXHIBIT C
CITY OF CHULA VISTA
COMMUNITY FACILITIES DISTRICT NO. 07-1
(OTA Y RANCH VILLAGE ELEVEN)
ASSIGNED SPECIAL TAX RATES FOR DEVELOPED PROPERTY
Annual Special Tax for Developed Property in Land Use Class 1
Community Facilities District No. 07-1
Residential Developed Parcels
Land Use Class 1 - Zone A and B
Land Use Class 4- Zone A and B
N/A
Assigned Special Tax
$1,675 per Dwelling Unit
$1,340 per Dwelling Unit
$1,005 per Dwelling Unit
$6,000 per Acre
Density (DU/Acre)
o to 8
Land Use Class 3 - Zone A and B
>8 to 20
>20
Land Use Class 2 - Zone A and B
Community Facilities District No. 07-/
Olay Ranch Village Eleven
I-L( I
Page 13
October 1,2003
RESOLUTION NO. 2003-
RESOLUTION FORMING AND ESTABLISHING COMMUNITY FACILITIES
DISTRICT NO. 07-1 (OT A Y RANCH VILLAGE ELEVEN) AND AUTHORIZING
SUBMITTAL OF LEVY OF SPECIAL TAXES WITHIN SUCH COMMUNITY
FACILITIES DISTRICT TO THE QUALIFIED ELECTORS THEREOF
WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA (the
"City Council"), has previously declared its intention to form a community facilities district and
ordered the preparation of a Community Facilities District Report relating to the initiation of
proceedings to create such community facilities district pursuant to the terms and provisions of the
"Mello-Roos Community Facilities Act of 1982," being Chapter 2.5, Part I, Division 2, Title 5 of the
Government Code of the State of California (the "Act") and the City of Chula Vista Community
Facilities District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista
under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the
"Ordinance") (the Act and the Ordinance may be referred to collectively as the "Community
Facilities District Law"). This community facilities district shall hereinafter be referred to as
COMMUNITY FACILITIES DISTRICT NO. 07-1 (OTAY RANCH VILLAGE ELEVEN) (the
"District")' and
, ,
WHEREAS, notice of a public hearing relating to the establishment ofthe District, the extent
of the District, the financing of certain types of public facilities 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 ofthe hearing to establish such
District; and,
WHEREAS, all communications relating to the establishment ofthe District, the financing of
certain types of public facilities and the rate and method of apportionment of special tax proposed to
be levied within the District 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; and,
WHEREAS, inasmuch as there have been less than twelve (12) registered voters residing
within the territory ofthe District for at least the preceding ninety (90) days, the authorization to levy
special taxes within the District shall be submitted to the landowners ofthe District, such landowners
being the qualified electors as authorized by law.
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
SECTION I. RECITALS. The above recitals are all true and correct.
SECTION 2. DETERMINA nONS. It is hereby determined by this City Council that:
I
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A. All prior proceedings pertaining to the formation of the District were valid and taken
in conformity with the requirements of the law, and specifically the provisions of the
Community Facilities District Law, and that this finding and determination is made
pursuant to the provisions of Government Code Section 53325.1.
B. The written protests received, if any, do not represent a maj ority protest as defined by
the applicable provisions of the Community Facilities District Law and as applied to
the District and, therefore, the special tax proposed to be levied within the District
has not been precluded by majority protest pursuant to Section 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 territoryofthe District
for each of the ninety (90) days preceding the close of the public hearing, therefore,
pursuant to the Act the qualified electors ofthe District shall be the landowners ofthe
District as such term is defined in Government Code Section 533l7(f) and each such
landowner who is the owner of record as of the close of the public hearing, or the
authorized representative thereof, shall have one vote for each acre or portion of an
acre of land that she or he owns within the District.
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 the District
and the requirements for impartial analysis and ballot arguments have been waived
with the unanimous consent of the qualified electors of the District.
F. The City Clerk, acting as the election official, has consented to conducting any
required election on a date which is less than 125 days following the adoption of any
resolution forming and establishing the District.
SECTION 3. COMMUNITY FACILITIES DISTRICT REPORT. The Community Facilities
District Report for the District (the "Report"), submitted by McGill Martin Self, Inc., Special Tax
Consultant dated October 1,2003, shall stand as the report as required pursuant to Government Code
Section 53321.5 for all future proceedings and all terms and contents are approved as set forth
therein.
SECTION 4. NAME OF DISTRICT. The City Council does hereby establish and declare the
formation of the District known and designated as "COMMUNITY FACILITIES DISTRICT NO.
07-1 (OTA Y RANCH VILLAGE ELEVEN)."
SECTION 5. BOUNDARIES OF DISTRICT~ The boundaries of the District are generally
described as follows:
2
! - Lf
All property within the boundaries of COMMUNITY FACILITIES DISTRICT NO.
07-1 (OT A Y RANCH VILLAGE ELEVEN), as shown on an amended boundary map
as previously approved by this legislative body, such map designated by the name of
this District, a copy of which is on file in the Office of the City Clerk. The amended
boundary map of the proposed District has been filed pursuant to Sections 3111 and
3113 ofthe Streets and Highways Code of the State of California in the Office ofthe
County Recorder of the County of San Diego, at Page 70 of Book 37 of the Book of
Maps of Assessment and Community Facilities Districts for such County.
SECTION 6. DESCRIPTION OF TYPES OF FACILITIES AUTHORIZED TO BE FINANCED.
A general description of the types of public facilities which this legislative body is authorized by law
to construct, own or operation, which are the types of facilities proposed to be financed under these
proceedings, are generally described in Exhibit A attached hereto and incorporated herein by this
reference.
The types of facilities as above-described are facilities which the City Council is authorized
by law to contribute revenue to or to construct, own or operate. It is hereby further determined that
the proposed types of facilities are necessary to meet increased demands placed upon the City as a
result of development occurring within the District, and the costs and expenses charged to this
District represent the fair share costs of the facilities attributable to this District.
For a full and complete description of such types of facilities, reference is made to the Report,
a copy of which is on file in the Office of the City Clerk. In addition to financing the above described
types of facilities, the financing of those incidental expenses described in the Report are also
approved and authorized.
SECTION 7. SPECIAL TAX. Except where funds are otherwise available a special tax, secured by
recordation of a continuing lien against all non-exempt real property in the proposed District, is
hereby authorized, subject to voter approval, to be levied within the boundaries of the District. For
particulars as to the rate and method of apportionment ofthe special tax proposed to be levied within
the District, reference is made to the attached and incorporated Exhibit "B" (the "Rate and Method of
Apportionment"), which sets forth in sufficient detail the method of apportionment of the special tax
to allow each landowner or resident within the District to estimate the maximum amount that such
person will have to pay. Such special tax shall be utilized to pay directly for the previously described
types offacilities, to pay debt service on bonds issued by the District to assist in financing such types
of facilities, to replenish any reserve fund established for such bonds, and to pay the costs of
administering the bonds and the District.
The special taxes herein authorized, to the extent possible, 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; provided, however, the
District may utilize a direct billing procedure for any special taxes that cannot be collected on the
County tax roll or may, by resolution, elect to collect the special taxes at a different time or in a
different manner if necessary to meet its financial obligations.
3
J-L/'f
Under no circumstances will the special tax to be levied against any parcel within the District
used for private residential purposes be increased as a consequence of delinquency or default by the
owner of any other parcel or parcels within the District by more than 10 percent.
This legislative body further authorizes that special taxes may be prepaid and satisfied by
payment of the prepayment amount calculated pursuant to the Rate and Method of Apportionment.
Upon recordation of a Notice of Special Tax Lien pursuant to Section 3114.5 ofthe Streets
and Highways Code of the State of California against the property within the District, a continuing
lien to secure each levy ofthe 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 8. SPECIAL TAX ACCOUNTABILITY MEASURES. Pursuant to and in compliance
with the provisions of Government Code Section 50075.1, this City Council hereby establishes the
following accountability measures pertaining to the levy by the District of the special taxes described
in Section 7 above:
A. The special tax shall be levied for the specific purposes set forth in Section 7. above.
B. The proceeds of the levy of such special tax shall be applied only to the specific applicable
purposes set forth in Section 7. above.
C. The District shall establish a separate account into which the proceeds of such special tax
shall be deposited.
D. The City Manager or his or her designee, acting for and on behalf of the District, shall
annually tlle a report with the City Council as required pursuant to Government Code Section
50075.3.
SECTION 9. PREPARATION OF ANNUAL TAX ROLL. The name, address and telephone
number of the office, department or bureau which will be responsible for preparing annually a
current roll of special tax levy obligations by Assessor's parcel number and which shall be
responsible for estimating future special tax levies pursuant to Section 53340.1 of the Government
Code of the State of California, are as follows:
Engineering Department
City ofChula Vista
276 Fourth Avenue
Chula Vista, CA 92010
(619) 691-5021
4
I-LIS
SECTION 10. SUBSTITUTION F ACILITŒS. The description of the types of public facilities, as set
forth in Exhibit A hereto, is general in its nature. The final nature and location of such facilities will
be determined upon the preparation of final plans and specifications therefor. Such final plans may
show substitutes in lieu of, or modification to, the above described types of facilities and any such
substitution shall not be a change or modification in the proceedings as long as the facilities provide
a service substantially similar to that as set forth in this Resolution.
SECTION II. ELECTION. This City Council herewith submits the levyofthe special tax within the
District to the qualified electors thereof, such electors being the landowners in the District, with each
landowner having one (1) voter for each acre or portion thereof ofland which he or she owns within
the District.
PREPARED BY:
APPROVED AS TO FORM BY:
Ú-~
Clifford Swanson
Director of Engineering
Ann Moore
City Attorney
5
/ -'16
EXHIBIT A
DESCRIPTION OF TYPES OF FACILITIES
The types of public facilities authorized to be financed by the levy of special taxes
within the proposed District shall include streets, grading, landscaping within public rights-of-way,
sewers, public utilities, a park, traffic enhancement facilities and other public improvements
authorized to be financed from the proceeds of the Public Facilities Development Impact Fee as may
be authorized by the goals and policies of the City Council pertaining to the use ofthe Community
Facilities District Law.
A-I
I--If 7
EXHIBIT B
ATTACH A COPY OF THE
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
A-I
I-If?
RESOLUTION NO. 2003-
RESOLUTION DECLARING NECESSITY TO INCUR A BONDED
INDEBTEDNESS FOR COMMUNITY FACILITIES DISTRICT NO. 07-1
(OTAY RANCH VILLAGE ELEVEN), SUBMITTING TO THE QUALIFIED
ELECTORS OF SUCH COMMUNITY FACILITIES DISTRICT SEPARATE
PROPOSITIONS TO AUTHORIZE THE LEVY OF A SPECIAL TAX
THEREIN, TO AUTHORIZE SUCH COMMUNITY FACILITIES DISTRICT
TO INCUR A BONDED INDEBTEDNESS SECURED BY THE LEVY OF
SUCH SPECIAL TAX TO FINANCE CERTAIN TYPES OF PUBLIC
FACILITIES AND TO ESTABLISH AN APPROPRIATIONS LIMIT FOR
SUCH COMMUNITY F ACILITlES DISTRICT, AND GIVING NOTICE
THEREON
WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA (the "City
Council"), has previously declared its intention and held and conducted a public hearing relating
to the issuance of bonds to be secured by special taxes to finance certain public facilities in a
community facilities district, as authorized pursuant to the terms and provisions of the "Mello-
Roos Community Facilities Act of 1982", being Chapler 2.5, Part 1, Division 2, Title 5 of the
Government Code of the State of California (the "Act") and the City of Chula Vista Community
Facilities District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista
under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the
"Ordinance") (the Act and the Ordinance may be referred to collectively as the "Community
Facilities District Law"). This Community Facilities District shall hereinafter be referred to as
COMMUNITY FACILITIES DISTRICT NO. 07-1 (OTAY RANCH VILLAGE ELEVEN) (the
"District")' and
, ,
WHEREAS, at this time tbe City Council desires to proceed to make the determination of
necessity to incur a bonded indebtedness for the District, to declare the purposes for such debt,
and to authorize the submittal to the qualified electors of the District, being the landowners of the
District, of a proposition to authorize the District to incur such indebtedness all as authorized and
required by the Community Facilities District Law;
WHEREAS, the City Council further desires to authorize the submittal of additional
propositions to such qualified electors of the District to (a) authorize the levy of special taxes
within the District and (b) to establish an appropriation limit for the District;
WHEREAS, all of the qualified electors of the District have waived the time limits
specified in the Act pertaining to the conduct of the election and the requirements for impartial
legal analysis and arguments have also been waived by the unanimous consent of the qualified
electors of the District; and
WHEREAS, the City Clerk, as the Election Official, has concurred in the shortening of
time for conducting the election.
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
1
/-ÿq
SECTION 1. RECITALS. The above recitals are all true and correct.
SECTION 2. NECESSITY FOR BOND ISSUES. The City Council hereby expressly declares
and states that it is necessary to incur a bonded indebtedness of the District as authorized under
the terms and provisions of the Community Facilities District Law, in order to finance the types
of public facilities described in Exhibit A attached hereto and incorporated herein by this
reference.
SECTION 3. BOND INDEBTEDNESS. The specific purposes for the proposed bonded
indebtedness are as follows:
To finance the costs of the acquisition or construction of certain public facilities
consisting of the types of facilities described in Exhibit A hereto (the "Facilities")
which is incorporated herein by this reference, appurtenances and appurtenant
work and any and all of those applicable incidental costs described in and
authorized by Government Code Section 53345.3.
SECTION 4. TERRITORY TO PAY FOR BONDED INDEBTEDNESS.
This City Council determines that the property within the entire District will pay for the
bonded indebtedness referred to in Section 3 above. A general description of the District is as
follows:
All property within the boundaries of Community Facilities District No. 07-1
(Otay Ranch Village Eleven), as shown on a amended map of the boundaries of
such District as previously approved by the City Council, such map designated by
the name of this District, a copy of which is on file in the Office of the City Clerk.
SECTION 5. BOND AMOUNT. The amount of the proposed bonded indebtedness, including
the cost of the Facilities, together with all incidental expenses, shall not exceed $45,000,000.
SECTION 6. BOND TERM This City Council hereby further determines that the maximum
term of bonds and/or any series shall not exceed forty (40) years, and such bonds may be issued
in differing series, at differing times. The maximum rate of interest to be paid on such bonds
may not exceed the greater of either twelve percent (12%) per annum or the maximum rate
permitted by law at the time of sale of any of such bonds. The bonds, except where other funds
are made available, shall be paid exclusively from the annual levy of the special tax within the
District, and are not secured by any other taxing power or funds of the District or the City.
SECTION 7. ACCOUNTABILITY MEASURES. Pursuant to and in compliance with the
provisions of Article 1.5 (commencing with Section 53410) of Chapter 3 of Part 1 of Division 2
of Title 5 of the Government Code, this City Council hereby establishes the following
accountability measures pertaining to any bonded indebtedness incurred by or on behalf of the
District:
2
1,,50
A. Such bonded indebtedness shall be incurred for the applicable specific purposes set forth
in the Section 3.
B. The proceeds of any such bonded indebtedness shall be applied only to the applicable
specific purposes identified in Section 3.
C. The document or documents establishing the terms and conditions for the issuance of any
such bonded indebtedness shall provide for the creation of an account into which the proceeds of
such indebtedness 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 this City Council as required by Government Code Section 53411.
SECTION 8. ELECTION. The propositions related to the incurring of the bonded indebtedness
shall be submitted to the appropriate qualified voters, together with ballot propositions to
authorize the levy of special taxes within the District and to establish an appropriations limit for
the District, at a special election to be held on November 12, 2003, and such election shall be a
special election to be conducted by the City Clerk (the "Election Official"). If any proposition for
the levy of the special tax and any proposition for incurring the bonded indebtedness receives the
approval of two-thirds (2/3) or more of the votes cast on each respective proposition, bonds may
be authorized, issued and sold for the applicable purposes set forth herein and the applicable
special tax may be levied as provided in Resolution Forming and Establishing Community
Facilities District No. 07-1 (Otay Ranch Village Eleven) and Authorizing the Submittal of
Special Taxes to the Qualified Electors Thereof. If the proposition to establish the appropriations
limit for the District receives the approval of a majority of the votes cast on such proposition,
such appropriations limit shall be established.
SECTION 10. BALLOTS. The ballot proposals to be submitted to the qualified voters of the
District at the election shall generally be as follows:
PROPOSITION A
Shall the City of Chula Vista Community Facilities District No.
07-1 (Otay Ranch Village Eleven), subject to accountability
measures set forth in Resolution No. , levy a special tax
throughout such district pursuant to the rate and method of
apportionment thereof set forth in such resolution for the purposes
of paying debt service on bonds of such district, replenishing the
reserve fund for such bonds, paying costs of administering such
indebtedness and such district and paying directly for the types of
facilities described in such resolution?
PROPOSITION B
Shall the City of Chula Vista Community Facilities District No.
07-1 (Otay Ranch Village Eleven), subject to accountability
3
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measures set forth in Resolution No. , incur a bonded
indebtedness of such district in an amount not to exceed
$45,000,000 for the specific purposes set forth in such resolution?
PROPOSITION C
Shall the City of Chula Vista Community Facilities District No.
07-[ (Otay Ranch Village Eleven) establish an Article XIIIB
appropriations limit equal to $45,OOO,000?
SECTION 10. VOTE The appropriate mark placed on the line in front of the word "YES" shall
be counted in favor of the adoption of the proposition, and the appropriate mark placed on the
line in front of the word "NO" in the manner as authorized, shall be counted against the adoption
of such proposition.
SECTION 11. ELECTION PROCEDURE The Election Official is hereby authorized to take any
and all steps necessary for the holding of such election. The Election Official shall perform and
render all services and proceedings incidental to and connected with the conduct of the election,
which services shall include, but not be limited to, the following activities as are appropriate to
the election:
A. Prepare and furnish to the election officers necessary election supplies for the
conduct of the election.
B. Cause to be printed the requisite number of official ballots, tally sheets and other
necessary forms.
C. Furnish and address official ballots for the qualified electors.
D. Cause the official ballots to be delivered to the qualified electors or their
authorized representatives, as required by law.
E. Receive the returns of the election and supplies.
F. Sort and assemble the election material and supplies m preparation for the
canvassing of the returns.
G. Canvass the returns of the election.
H. Furnish a tabulation of the number of votes given in the election.
I. Make all arrangements and take the necessary steps to pay all costs of the election
incurred as result of services performed by the District and pay costs and
expenses of all election officials.
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J. Conduct and handle all other matters relating to the proceedings and conduct of
the election in the manner and form as required by law.
PREPARED BY:
APPROVED AS TO FORM BY:
Clifford Swanson
Director of Engineering
(^--~
Ann Moore
City Attorney
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EXHIBIT A
DESCRIPTION OF TYPES OF FACILITIES
The types of public facilities authorized to be financed by the levy of special taxes
within the proposed District shall include streets, grading, landscaping within public rights-of-
way, sewers, public utilities, a park, traffic enhancement facilities and other public improvements
authorized to be financed from the proceeds of the Public Facilities Development Impact Fee as
may be authorized by the goals and policies of the City Council pertaining to the use of the
Community Facilities District Law.
A-I
I - 5f