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HomeMy WebLinkAboutReso 2022-066 DocuSign Envelope ID:20ECB1B1-9396-4230-8D9F-2965DE44DD7D RESOLUTION NO. 2022-066 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING ITS INTENTION TO AUTHORIZE THE ANNEXATION OF TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 18M (OTAY RANCH VILLAGE 3) (ANNEXATION NO. 1) WHEREAS, the City Council of the City of Chula Vista, California, ("City Council"), formed a Community Facilities District pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982", being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the "Act"), and the City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the "Ordinance") (the Act and the Ordinance may be referred to collectively as the "Community Facilities District Law"). The Community Facilities District has been designated as Community Facilities District No. 18M (Otay Ranch Village 3) (the "District"); and WHEREAS, the District was formed for the purpose of financing the maintenance and replacement of(a) landscaping, including,but not limited to,trees, slopes, parkways and medians; (b) facilities that are directly related to storm water quality control; (c) walls and fencing; and(d) trails within the Otay Ranch Village 3 master planned community; and WHEREAS, certain territory identified as a part of Otay Ranch Village 3 is proposed to be annexed to the District and such territory shall be known and designated as Community Facilities District No. 18M (Otay Ranch Village 3)Annexation No. 1 (the "Territory"); and WHEREAS, this legislative body now desires to proceed to adopt its Resolution of Intention to annex the Territory to the District,to describe the territory included within the District and the Territory proposed to be annexed thereto, to specify the services to be financed from the proceeds of the levy of special taxes within the Territory, to set and specify the special taxes that would be levied within the Territory to finance such services, and to set a time and place for a public hearing relating to the annexation of the Territory to the District; and WHEREAS, a map showing the Territory proposed to be annexed has been submitted, which map has been previously approved and a copy of the map shall be kept on file with the transcript of these proceedings. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it hereby declares its intention to authorize the annexation of territory to Community Facilities District No. 18M (Otay Ranch Village 3). Recitals. The above recitals are all true and correct. DocuSign Envelope ID:20ECB1B1-9396-4230-8D9F-2965DE44DD7D Resolution No. 2022-066 Page No. 2 Legal Authority. These proceedings for annexation are initiated by this City Council pursuant to the authorization of the Community Facilities District Law. Intent to Annex; Description of Territory This legislative body hereby determines that the public convenience and necessity requires that the Territory be added to the District and this City Council declares its intention to annex the Territory to the District. A description of the boundaries and Territory proposed to be annexed is as follows: All that Territory proposed to be annexed to the District, as such property is shown on a map as previously approved by this legislative body, such map entitled "Annexation Map No. I of Community Facilities District No. 18M (Otay Ranch Village 3), City of Chula Vista, County of San Diego, State of California" (the "Annexation Map"), a copy of which is on file in the Office of the City Clerk and shall remain open for public inspection. A general description of the territory included in the District is hereinafter described as follows: All that property and territory as originally included within the District,as such property is shown on the map of the original District as approved by this City Council and designated by the name of the original District. A copy of such map is on file in the Office of the City Clerk and has also been filed in the Office of the County Recorder. Name. The proposed annexation shall be known and designated as Community Facilities District No. 18m(Otay Ranch Village 3) Annexation No. 1. Services Authorized to be Financed by the District. The services that are authorized to be financed by the District from the proceeds of special taxes levied within the District are certain services which are in addition to those provided in or required for the territory within the District, and will not be replacing services already available. A general description of such services to be financed by the District is as follows: (a)landscaping,including,but not limited to,trees,slopes,parkways and medians; (b) facilities that are directly related to storm water quality control; (c) walls and fencing; and (d) trails within the Otay Ranch Village 3 master planned community; A more complete description of such services may be found in Exhibit A to this Resolution. The District shall finance all direct,administrative and incidental annual costs and expenses necessary to provide such monitoring, maintenance, operation and management of such public property. The same types of services which are authorized to be financed by the District from the proceeds of special taxes levied within the District are the types of services to be provided in the Territory. If and to the extent possible such services shall be provided in common within the District and the Territory. DocuSign Envelope ID:20ECB1B1-9396-4230-8D9F-2965DE44DD7D Resolution No.2022-066 Page No. 3 Special Taxes. It is the further intention of this City Council that, except where funds are otherwise available, a special tax sufficient to pay for such services and related incidental expenses authorized by the Community Facilities District Law, secured by recordation of a continuing lien against all non-exempt real property in the Territory,will be levied annually within the boundaries of such Territory. For further particulars as to the rate and method of apportionment of the proposed special tax, reference is made to the attached and incorporated Exhibit B (the "Rate and Method"), which sets forth in sufficient detail the method of apportionment to allow each landowner or resident within the proposed Territory to clearly estimate the maximum amount that such person will have to pay. The special tax proposed to be levied within the Territory shall be equal to the special tax levied to pay for the same services in the District, except that a higher or lower special tax may be levied within the Territory to the extent that the actual cost of providing the services in the Territory is higher or lower than the cost of providing those services in the District. Notwithstanding the foregoing, the special tax may not be levied at a rate which is higher than the maximum special tax authorized to be levied pursuant to the Rate and Method. The special taxes herein authorized, to the extent possible or unless otherwise determined by the CFD administrator, 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. Any special taxes that may not be collected on the County tax roll shall be collected through a direct billing procedure by the CFD Administrator. The maximum special tax rate in the District shall not be increased as a result of the annexation of the Territory to the District. Public Hearing. Notice is given that on Tuesday,April 12, 2022, at the hour of 5:00 p.m., in the regular meeting place of the legislative body, being the Council Chambers, 276 Fourth Avenue, Chula Vista, California, or via video conference or teleconference as directed by the City due to public health concerns, a public hearing will be held where this legislative body will consider the authorization for the annexation of the territory to the district, the Proposed Rate and Method of Apportionment of the special tax to be levied within the territory and all other matters as set forth in this resolution of intention. At such public hearing,the testimony of all interested persons for or against the annexation of the territory or the levying of special taxes within the territory will be heard. At such public hearing, protests against the proposed annexation of the territory, the levy of special taxes within the territory or any other proposals contained in this resolution may be made orally by any interested person. Any protests pertaining to the regularity or sufficiency of the proceedings shall be in writing and shall clearly set forth the irregularities or defects to which objection is made. All written protests shall be filed with the City Clerk prior to the time fixed for the public hearing. Written protests may be withdrawn at any time before the conclusion of the public hearing. DocuSign Envelope ID:20ECB1B1-9396-4230-8D9F-2965DE44DD7D Resolution No. 2022-066 Page No. 4 Majority Protest. If(a) 50% or more of the registered voters, or six (6) registered voters, whichever is more,residing within the District, (b) 50%or more of the registered voters, or six (6) registered voters, whichever is more,residing within the Territory, (c) owners of one-half or more of the area of land in the territory included in the District, or(d) owners of one-half or more of the area of land included in the Territory, file written protests against the proposed annexation of the Territory to the District in the future and such protests are not withdrawn so as to reduce the protests to less than a majority,no further proceedings shall be undertaken for a period of one year from the date of the decision by the City Council on the issue discussed at the public hearing. Election. Upon the conclusion of the public hearing, if the legislative body determines to proceed with the annexation of the Territory, a proposition shall be submitted to the qualified electors of the Territory. The vote shall be by registered voters within the Territory; provided, however, if there are less than 12 registered voters, the vote shall be by landowners, with each landowner having one vote per acre or portion thereof within the Territory. Notice. Notice of the time and place of the public hearing shall be given by the City Clerk by publication in the legally designated newspaper of general circulation,pursuant to Section 6061 of the Government Code, with said publication to be completed at least seven(7) days prior to the date set for the public hearing. [SIGNATURES ON THE FOLLOWING PAGE] DocuSign Envelope ID:20ECB1B1-9396-4230-8D9F-2965DE44DD7D Resolution No.2022-066 Page No. 5 Presented by Approved as to form by Ey�^ DocuSigned by: DocuSigned by: AA76F15D450845D... ECF4'06508504 !F... Tiffany Allen Glen R. Googins Director of Development Services City Attorney PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 15th day of March 2022 by the following vote: AYES: Councilmembers: Cardenas,Galvez,McCann,Padilla, and Casillas Salas NAYS: Councilmembers: None ABSENT: Councilmembers: None DocuSigned by: 062BFD7C0386456... Mary Casillas Salas, Mayor ATTEST: DocuSigned by: 3074D104EAF342E... Kerry K. Bigelow, MMC, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2022-066 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 15th day of March 2022. Executed this 15th day of March 2022. DocuSigned by: 30746104EAF342E... Kerry K. Bigelow, MMC, City Clerk DocuSign Envelope ID:20ECB1B1-9396-4230-8D9F-2965DE44DD7D Resolution No. 2022-066 Page No. 6 EXHIBIT A CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 18M (OTAY RANCH VILLAGE 3) Description of Services The types of services (the "Services") to be funded by special taxes levied within CFD No. 18M shall include maintenance, servicing and replacement of(a) landscaping, including, but not limited to, trees, shrubs, grass, other ornamental vegetation located in or on slopes, parkways and medians; (b) facilities that are directly related to storm water quality control; (c)walls and fencing; and(d) trails (collectively, the "Improvements")located in public right-of-way,property owned by the City of Chula Vista ("City") or property over which the City has an easement authorizing the City to maintain such landscaping, facilities, walls and fencing and trails. For purposes of this description of the Services to be funded by the levy of Special Taxes within CFD No. 18M, "maintenance" includes, but is not limited to, the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any of the Improvements, including: (a) Repair, removal, or replacement of all or any part of any Improvement. (b)Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury. (c) The removal of trimmings, rubbish, debris, silt, and other solid waste. (d) The cleaning, sandblasting, and painting of walls and other Improvements to remove or cover graffiti. (e) The elimination, control, and removal of rodents and vermin. (f) The maintenance and cleaning of drainage and other storm water control facilities required to provide storm water quality control. "Service" or "servicing" means the furnishing of: (a) Electric current or energy, gas, or other illuminating agent for any public lighting facilities or for the lighting or operation of any other Improvements. (b) Water for the irrigation of any landscaping or the operation or maintenance of any other Improvements. For purposes of this description of the Services to be funded by the levy of Special Taxes within CFD No. 18M,"administrative expenses"means the actual or estimated costs incurred by the City, acting for and on behalf of CFD No. 18M as the administrator thereof, to determine, levy and collect the Special Taxes within CFD No. 18M, including salaries of City employees and a proportionate amount of the City's general administrative overhead related thereto, and the fees of consultants and legal counsel providing services related to the administration of CFD No. 18M; the costs of collecting installments of the Special Taxes levied within CFD No. 18M; and any other costs required to administer CFD No. 18M as determined by the City. DocuSign Envelope ID:20ECB1B1-9396-4230-8D9F-2965DE44DD7D Exhibit B Rate and Method III III iir liii iiiiliirneliiiit of SIjjpecialI max 10i° '''!IV" ' "°u a lllh uu IIII 11111J iii a u wI uu rl iiii ni uu uu iu liii°u"''!lug IIIIC°° liii IIII l u liii IIII'' l strict c IIIYMio I&IIhol (m u ''0uo''' l i n t u, lt "A l l u g e v Pilo.. 1 A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels of Taxable Property within the boundaries of Community Facilities District No. 18M (Otay Ranch Village 3) of the City of Chula Vista and collected each Fiscal Year commencing with Fiscal Year 2022-23 in an amount determined by the CFD Administrator through the application of the procedures described below. All of the real property within CFD No. 18M, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre"or"Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable Final Subdivision Map, other final map, other parcel map, other condominium plan, or functionally equivalent map or instrument recorded in the Office of the County Recorder. The square footage of an Assessor's Parcel is equal to the Acreage multiplied by 43,560. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the actual or estimated costs incurred by the City, acting for and on behalf of the CFD as the administrator thereof, to determine, levy and collect the Special Taxes, including salaries of City employees and a proportionate amount of the City's general administrative overhead related thereto, and the fees of consultants and legal counsel providing services related to the administration of the CFD; the costs of collecting installments of the Special Taxes; and any other costs required to administer the CFD as determined by the City. "Assessor's Parcel" or"Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned assessor's parcel number. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by assessor's parcel number. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. 1 DocuSign Envelope ID:20ECB1B1-9396-4230-8D9F-2965DE44DD7D Exhibit B "CFD No. 18M" or"CFD" means Community Facilities District No. 18M (Otay Ranch Village 3) of the City of Chula Vista. "City" means the City of Chula Vista. "Community Purpose Facility Property" or "CPF Property" means all Assessor's Parcels which are classified as community purpose facilities and meet the requirements of City Ordinance No. 2883. "Construction Cost Index" means, for any Fiscal Year, the applicable Construction Cost Index for the City of Los Angeles as set forth in the Engineering News Record for July of such Fiscal Year. In the event that this rate is no longer published or provided, the CFD Administrator shall choose a comparable rate to use in its place. "Consumer Price Index for Urban Wage Earners and Clerical Workers" or "CPI-W" means the applicable CPI-W as set forth bythe United States Department of Labor, Bureau of Labor Statistics for July of such Fiscal Year. In the event that this rate is no longer published or provided,the CFD Administrator shall choose a comparable rate to use in its place. "Council" means the City Council of the City, acting as the legislative body of the CFD. "County" means the County of San Diego, California. "Developed Property" means all Taxable Property for which a building permit was issued prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied. "Dwelling Unit" or "DU" means each separate residential dwelling unit that comprises an independent facility capable of conveyance or rental separate from adjacent residential dwelling units. "Exempt Property" means all Assessor's Parcels within CFD No. 18M that are exempt from the Special Taxes pursuant to law or Section F herein. "Final Subdivision Map" means a subdivision of property creating residential or non-residential buildable lots by recordation of a final subdivision map or parcel map pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.), or recordation of a condominium plan pursuant to California Civil Code 1352,that creates individual lots for which building permits may be issued without further subdivision and is recorded prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Land Use Class" means any of the classes listed in Table 1. "Maximum Special Tax Basis" means the amount determined in accordance with Section C below that represents the actual costs associated with providing the Services funded by CFD No. 18M. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C below that may be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property. 2 DocuSign Envelope ID:20ECB1B1-9396-4230-8D9F-2965DE44DD7D Exhibit B "Multi-Family Property" means all Assessor's Parcels of Residential Property consisting of two or more for-rent Dwelling Units that share common walls, including, but not limited to, apartments and townhomes that are not for sale to an end user and are under common management. "Non-Residential Property" means all Assessor's Parcels of Developed Property for which a building permit(s) has been issued for a structure or structures for non-residential use. "Otay Water District Commodity Rate" means the maximum rate charged by the Otay Water District for recycled water on July 11t of any Fiscal Year. In the event that this rate is no longer published or provided, the CFD Administrator shall choose a comparable rate to use in its place. "Property Owner Association Property" means any property within the boundaries of the CFD that is owned by,or irrevocably dedicated as indicated in an instrument recorded with the County Recorder to, a property owner association, including any master or sub-association. "Public Property" means any property within the boundaries of the CFD that is, at the time of the CFD formation, expected to be used for any public purpose and is owned by or dedicated to the federal government, the State, the County, the City or any other public agency. "Reserve Fund" means a fund that shall be maintained for the CFD each Fiscal Year to provide necessary cash flow for the first six months of each Fiscal Year, working capital to cover monitoring, maintenance and repair cost overruns and delinquencies in the payment of Special Taxes and a reasonable buffer to prevent large variations in annual Special Tax levies. "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit(s) has been issued for purposes of constructing one or more residential dwelling unit(s). "Services" means those authorized services that may be funded by CFD No. 18M pursuant to the Act, as amended, including, without limitation, those services authorized to be funded by CFD No. 18M as set forth in the documents adopted by the City Council at the time CFD No. 18M was formed. "Single Family Attached Property" means all Assessor's Parcels of for-sale Residential Property consisting of one or more Dwelling Unit(s) that share common walls with one or more other Dwelling Unit(s), including, but not limited to, duplexes, triplexes, townhomes, and condominiums. "Single Family Detached Property" means all Assessor's Parcels of Residential Property consisting of a single Dwelling Unit. "Special Tax" means the Special Tax levied pursuant to the provisions of sections C and D below in each Fiscal Year on each Assessor's Parcel of Developed Property and Undeveloped Property in CFD No. 18M to fund the Special Tax Requirement. "Special Tax Requirement" means the amount, as determined by the CFD Administrator,for any Fiscal Year to: (i) pay the costs of providing the Services during such Fiscal Year, (ii) pay Administrative Expenses associated with the Special Tax, (iii) establish or replenish the Reserve Fund, (iv) pay incidental expenses related to the Services as authorized pursuant to the Act, (v) fund an amount equal to a reasonable estimate of delinquencies expected to occur in the Fiscal Year in which the Special Tax will be levied ("Estimated Special Tax Delinquency Amount") and 3 DocuSign Envelope ID:20ECB1B1-9396-4230-8D9F-2965DE44DD7D Exhibit B (vi) fund the shortfall, if any, in the Special Tax revenues collected in the preceding Fiscal Year necessary to fund the Special Tax Requirement for Services for such Fiscal Year where such shortfall resulted from delinquencies in the payment of Special Taxes in such Fiscal Year that exceeded the Estimated Special Tax Delinquency Amount included in the Special Tax Requirement for Services for such Fiscal Year, less (vii) any funds available in the Reserve Fund or other funds associated with CFD No. 18M. "State" means the State of California. "Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD No. 18M of the CFD that are not exempt from the Special Tax pursuant to law or as defined below. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property. B. ASSIGNMENT TO CATEGORIES OF SPECIAL TAX Each Fiscal Year, beginning with Fiscal Year 2022-23, using the definitions above, each Assessor's Parcel within CFD No. 18M shall be classified by the CFD Administrator as Taxable Property or Exempt Property. In addition, each such Fiscal Year, each Assessor's Parcel of Taxable Property shall be further classified by the CFD Administrator as Developed Property or Undeveloped Property. Developed Property shall be further assigned to a Land Use Class as specified in Table 1.The Land Use Class of each Assessor's Parcel of Residential Property or Non-Residential Property shall be determined based on the records of the County Assessor or other such information provided by the City. Commencing with Fiscal Year 2022-23 and for each subsequent Fiscal Year, Developed Property shall be subject to the levy of Special Taxes pursuant to Section C below. In some instances, an Assessor's Parcel of Developed Property may contain more than one Land Use Class. The Maximum Special Tax levied on such Assessor's Parcel shall be the sum of the Maximum Special Taxes for all Land Use Classes located on that Assessor's Parcel. C. MAXIMUM SPECIAL TAX RATE 1. Developed Property The Maximum Special Tax for any Assessor's Parcel classified as Developed Property shall be determined by reference to Table 1 and the paragraphs that follow Table 1. 4 DocuSign Envelope ID:20ECB1B1-9396-4230-8D9F-2965DE44DD7D Exhibit B TABLE 1 Maximum Special Tax Basis for Developed Property Community Facilities District No. 18M (Fiscal Year 2021-22) Maximum Maximum Maximum Maximum Special Tax Special Tax Special Tax Basis Special Tax Basis Larid Use Class Basis for Basis for for Asset Labor Water Replacement Single Family Detached Property $ 1,038.98 $409.79 $287.40 $1,736.17 Single Family Attached Property $831.18 $327.83 $229.92 $1,388.94 Multi-Family Property $83.11 $32.77 $23.00 $138.87 Non-Residential Property $4,155.93 $1,639.17 $1,149.67 $6,944.77 The Maximum Special Tax Basis shall be equal to the sum of Maximum Special Tax Basis for Labor, Maximum Special Tax Basis for Water and Maximum Special Tax Basis for Asset Replacement as shown in Table 1 above. In determining the Maximum Special Tax Basis, the components of the Maximum Special Tax Basis for each Land Use Description shall be increased in the 2022-23 Fiscal Year, and each Fiscal Year thereafter, as follows: i. the annual percentage change of the Maximum Special Tax Basis for Labor shall be equal to the annual percentage change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W); and ii. the annual percentage change of the Maximum Special Tax Basis for Water shall be equal to the annual percentage change in the Otay Water District Commodity Rate; and iii. the annual percentage change of the Maximum Special Tax Basis for Asset Replacement shall be equal to the annual percentage change in the Engineering News Record Construction Cost Index for the Los Angeles Area. The Fiscal Year 2021-22 Maximum Special Tax shall be equal to the Fiscal Year 2021-22 Maximum Special Tax Basis. In each subsequent Fiscal Year, the Maximum Special Tax shall be increased by an amount not less than two percent (2%) and not greater than six percent (6%) that results in a minimal absolute difference from the Maximum Special Tax Basis for that Fiscal Year. 9 DocuSign Envelope ID:20ECB1B1-9396-4230-8D9F-2965DE44DD7D Exhibit B 2. Other Property Types No Special Tax shall be levied on Undeveloped Property or Exempt Property. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2022-23, and for each subsequent Fiscal Year, the CFD Administrator shall levy the Special Tax on all Taxable Property of CFD No. 18M until the total amount of Special Tax levied equals the Special Tax Requirement. The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property within CFD No. 18M up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax Requirement. Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor's Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased as a consequence of delinquency or default by the owner of any other Assessor's Parcel within the CFD by more than ten percent (10%) above what such Special Tax would have been in the absence of delinquencies. SPECIALE. PREPAYMENT OF THE The Special Tax shall be levied in perpetuity for the purpose of financing ongoing authorized Services and therefore may not be prepaid. EXEMPTIONSF. The City Council shall classify as Exempt Property: (i) Public Property, (ii) Property Owner Association Property, (iii) CPF Property, (iv) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, including but not limited to property designated for open space, trails, pathways, parks or park and recreation related facilities, and (v) property reasonably designated by the City or CFD Administrator as Exempt Property due to deed restrictions, conservation easement, or similar factors. G. APPEALS Any landowner who pays the Special Tax and claims the amount of the Special Tax levied on his or her Assessor's Parcel is in error shall first consult with the CFD Administrator regarding such error not later than thirty-six(36) months after first having paid the first installment of the Special Tax that is disputed. If following such consultation, the CFD Administrator determines that an error has occurred, then the CFD Administrator shall take any of the following actions, in order of priority, in order to correct the error: (i) Amend the Special Tax levy on the landowner's Assessor's Parcel(s) for the current Fiscal Year prior to the payment date, (ii) Require the CFD to reimburse the landowner for the amount of the overpayment to the extent of available CFD funds, or (iii) Grant a credit against, eliminate or reduce the future Special Taxes on the landowner's 6 DocuSign Envelope ID:20ECB1B1-9396-4230-8D9F-2965DE44DD7D Exhibit B Assessor's Parcel(s) in the amount of the overpayment. If following such consultation and action by the CFD Administrator the landowner believes such error still exists, such person may file a written notice of appeal with the City Council. Upon the receipt of such notice, the City Council or designee may establish such procedures as deemed necessary to undertake the review of any such appeal. If the City Councilor designee determines an error still exists, the CFD Administrator shall take any of the actions described as (i), (ii) and (iii) above, in order of priority, in order to correct the error. The City Council or designee thereof shall interpret this Rate and Method of Apportionment of Special Tax for purposes of clarifying any ambiguities and make determinations relative to the administration of the Special Tax and any landowner appeals. The decision of the City Council or designee shall be final. COLLECTIONH. MANNER OF Special Taxes levied pursuant to Section D above shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided that the CFD Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of the CFD or as otherwise determined appropriate by the CFD Administrator. 1. TERM OF SPECIAL TAX Taxable Property in the CFD shall remain subject to the Special Tax in perpetuity. 7