HomeMy WebLinkAboutReso 2024-150RESOLUTION NO. 2024-150
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA, ACTING AS THE LEGISLATIVE BODY OF
COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE
MAINTENANCE DISTRICT), MAKING CERTAIN
DETERMINATIONS AND AUTHORIZING SUBMITTAL OF
LEVY OF SPECIAL TAXES TO THE QUA LIFIED ELECTORS
OF CERTAIN TERRITORY PROPOSED TO BE ANNEXED TO
COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE
MAINTENANCE DISTRICT) AND IMPROVEMENT AREA “C”
THERETO
(ANNEXATION NO. 13)
WHEREAS, the City Council of the City of Chula Vista, California, (“City Council”),
formed a Community Facilities District and designated certain improvement areas therein pursuant
to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter
2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”), and
the City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers
reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of
the State of California (the “Ordinance”) (the Act and the Ordinance may be referred to collectively
as the “Community Facilities District Law”). The Community Facilities District has been
designated as COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE
DISTRICT) (the “District”) and the Improvement Areas were designated as IMPROVEMENT
AREA “A,” IMPROVEMENT AREA “B” and IMPROVEMENT AREA “C” of such District;
and
WHEREAS, the City Council, at the request of HomeFed Otay Land II, LLC, the owner
of that territory known as Otay Ranch Village 8 East, located in Otay Ranch, initiated proceedings
pursuant to the Community Facilities District Law to annex such territory to the District and
Improvement Area “C” thereto; and
WHEREAS, notice of a public hearing relating to the annexation of such territory to the
District and Improvement Area “C,” the extent of the territory to be annexed, the furnishing of
certain public services and all other related matters has been given; and
WHEREAS, the territory proposed to be annexed is known and designated as Community
Facilities District No. 97-2 (Preserve Maintenance District), Improvement Area “C,” Annexation
No. 13 (the “Territory”); and
WHEREAS, it has now been determined that written protests have not been received by
50% or more of the registered voters residing either within the Territory or Improvement Area “C”
and/or property owners representing more than one-half (1/2) or more of the area of land within
the Territory or within Improvement Area “C”; and
Docusign Envelope ID: 8D0BC1DA-9C8F-4BD5-9CEA-E1BF2045BE9B
Resolution No. 2024-150
Page No. 2
WHEREAS, inasmuch as there have been less than twelve (12) persons registered to vote
within the Territory for each of the 90 preceding days, this legislative body desires to submit the
levy of the required special tax to the landowners of the Territory, such landowners being the
qualified electors as authorized by law.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
California, that the City Council determines that:
(a) all minor defects in the proceedings are hereby corrected as
authorized by Section 53323 of the Government Code of the
State of California;
(b) all proceedings prior hereto were valid and taken in conformity
with the requirements of law, and specifically the provisions of
the Community Facilities District Law, and this finding is made
pursuant to the provisions and authorization of Section 53325.1
of the Government Code of the State of California;
(c) the annexation of the Territory to Improvement Area “C” as
proposed conforms with the City of Chula Vista Statement of
Goals and Policies Regarding the Establishment of Community
Facilities Districts;
(d) less than twelve (12) registered voters have resided within the
Territory for each of the ninety (90) days preceding th e close of
the public hearing and, consequently, the qualified electors shall
be the landowners of the Territory and each 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
Territory;
(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 Territory and the
requirements for impartial analysis and ballot arguments have
been waived with the unanimous consent of the qualified
electors of the Territory;
(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 annexing the
Territory to the District and Improvement Area “C” thereto; and
(g) the public services described in Section 4 herein proposed to be
financed from the proceeds of special taxes to be levied within
the Territory are necessary to meet increased demands placed
upon the City as a result of development and/or rehabilitation
occurring in the Territory.
Docusign Envelope ID: 8D0BC1DA-9C8F-4BD5-9CEA-E1BF2045BE9B
Resolution No. 2024-150
Page No. 3
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the
above recitals are all true and correct.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the
boundaries and parcels of land in the Territory and in which the public services are to be provided
and on which special taxes will be levied in order to pay the costs and expenses for such public
services are generally described as follows:
All that Territory proposed to be annexed to the District and
Improvement Area “C” thereto, as such property is shown on a map
as previously approved by this legislative body, such map entitled
“Annexation Map No. 13 Community Facilities District No. 97-2
(Preserve Maintenance District), 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. The Annexation Map was filed in the Office
of the San Diego County Recorder on June 6, 2024, in Book 52,
Page 5 of Maps of Assessment and Community Facilities Districts
and as Document No. 2024-7000272.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the
services that are authorized to be financed by the District from the proceeds of special taxes levied
within Improvement Area “C” are certain services which are in addition to those services that were
provided in or required for Improvement Area “C” prior to the formation of the District and the
designation of Improvement Area “C” and did not replace services already available in the District
or Improvement Area “C” at the time of formation of the District and the designation of
Improvement Area “C.” A general description of the services authorized to be financed by the
District within Improvement Area “C” is as follows:
The monitoring, maintenance, operation, and management of the
public or private property within boundaries of the Otay Ranch
Preserve, as such boundaries may be modified from time to time,
required by the Resource Management Plan to be maintained as
open space or habitat preservation land or both. Such property may
be located outside the boundaries of the District and outside the
jurisdictional boundaries of the City of Chula Vista. Such services
shall not include the maintenance, operation and/or management of
any property owned, maintained, operated and/or managed by the
federal and/or state government as open space, habitat maintenance
and/or for any other purpose.
The District shall finance all direct, administrative and incidental annual costs and expenses
necessary to provide such monitoring, maintenance, operation and management of such property.
The same types of services which are authorized to be financed by the District from the
proceeds of special taxes levied within Improvement Area “C” are the types of services to be
financed from the proceeds of special taxes levied within the Territory. If and to the extent possible,
such services shall be provided in common within the District and the Territory.
Docusign Envelope ID: 8D0BC1DA-9C8F-4BD5-9CEA-E1BF2045BE9B
Resolution No. 2024-150
Page No. 4
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that except
where funds are otherwise available, a special tax sufficient to pay for such services and rela ted
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 “1” (the “Improvement Area ‘C’ 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 Improvement Area “C,” 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 Improvement Area “C.”
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 Improvement Area “C” Rate and
Method.
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. Any special taxes
that may not be collected on the County tax roll shall be collected through a direct billing procedure
by the Treasurer.
The maximum special tax rate in Improvement Area “C” shall not be increased as a result
of the annexation of the Territory to Improvement Area “C.”
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the
proposition related to the levy of the special tax shall be submitted to the qualified electors of the
Territory, such electors being the landowners, with each landowner having one (1) vote for each
acre or portion thereof of land which he or she owns within such annexed territory. The special
election shall be held on July 16, 2024, immediately following the adoption of this Resolution, and
such election shall be a special election to be conducted by the City Clerk (hereinafter “Election
Official”). If the proposition for the levy of the special tax receives the approval of more than two-
thirds (2/3) of the votes cast on the proposition, the special tax may be levied as provided for in
this Resolution.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the
ballot proposal to be submitted to the qualified electors at the election shall generally be as follows:
Docusign Envelope ID: 8D0BC1DA-9C8F-4BD5-9CEA-E1BF2045BE9B
Resolution No. 2024-150
Page No. 5
PROPOSITION A
CITY OF CHULA VISTA
COMMUNITY FACILITIES DISTRICT NO. 97-2,
IMPROVEMENT AREA “C” ANNEXATION NO. 13
AUTHORIZATION FOR SPECIAL TAX LEVY
Shall Community Facilities District No. 97-2 (Preserve
Maintenance District) of the City of Chula Vista be authorized to
levy special taxes within the territory identified as Annexation No.
13 to Improvement Area “C” of such District pursuant to the rates
and subject to such annual increases as set forth in the rate and
method of apportionment of special taxes (the “Improvement Area
‘C’ Rate and Method”) attached to this ballot to finance the
authorized services and administrative expenses and to fund and
replenish a reserve fund, all as provided for in the Improvement
Area “C” Rate and Method attached to this ballot, until ended by the
voters?
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the
appropriate mark placed in box adjacent to the word “YES” shall be counted in favor of the
adoption of the proposition, and the appropriate mark placed in the box adjacent to the word “NO”
in the manner as authorized, shall be counted against the adoption of such proposition.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that this
City Council hereby authorizes the Election Official to take any and all steps necessary for the
holding of such election and ratifies any such steps previously taken by such Election Official
which were necessary for the holding of such election. Such Election Official shall perform and
render all services and proceedings incidental to and connected with the conduct of such election,
and such services shall include, but not be limited to the following:
(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 of
the Territory.
(d) Cause the official ballots to be mailed and/or delivered, as
required by law.
(e) Receive the returns of the election.
(f) Sort and assemble the election material and supplies in
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 a result of services performed
for the District and pay costs and expenses of all election
officials.
(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.
Docusign Envelope ID: 8D0BC1DA-9C8F-4BD5-9CEA-E1BF2045BE9B
Resolution No. 2024-150
Page No. 6
Presented by Approved as to form by
Laura C. Black, AICP Marco A. Verdugo
Director of Development Services City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 16th day of July 2024 by the following vote:
AYES: Councilmembers: Chavez, Gonzalez, Preciado, and McCann
NAYS: Councilmembers: None
ABSENT: Councilmembers: Morineau
John McCann, Mayor
ATTEST:
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. 2024-150 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 16th day of July 2024.
Executed this 16th day of July 2024.
Kerry K. Bigelow, MMC, City Clerk
Docusign Envelope ID: 8D0BC1DA-9C8F-4BD5-9CEA-E1BF2045BE9B
For
Resolution No. 2024-150
Page No. 7
EXHIBIT “1”
Rate and Method of Apportionment of
Special Tax
City of Chula Vista Community
Facilities District No. 97-2 (PRESERVE
MAINTENANCE DISTRICT)
Improvement Area C
Annexation No. 13
A Special Tax of Community Facilities District No. 97-2 (Preserve Maintenance District) of the
City of Chula Vista ("CFD") shall be levied on all Assessor's Parcels in Annexation No. 13 of
Improvement Area C of the CFD and collected each Fiscal Year commencing with Fiscal Year
2024-2025 in an amount determined through the application of the rate and method of
apportionment of the Special Tax set forth below. All of the real property within Annexation
No. 13 of Improvement Area C of the CFD, unless exempted by law or by the provisions hereof,
shall be taxed for the purposes, to the extent and in the manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Acre or Acreage" means the land area of an Assessor’s Parcel as shown on an Assessor's
Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown
on the applicable 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 Area C of 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.
Docusign Envelope ID: 8D0BC1DA-9C8F-4BD5-9CEA-E1BF2045BE9B
Resolution No. 2024-150
Page No. 8
"Building Square Foot or Square Footage" means the square footage as shown on an
Assessor’s Parcel’s building permit of Residential Property excluding garages or other
structures not used as living space.
"CFD Administrator" means an official of the City, or designee thereof, responsible for
determining the Special Tax Requirement and providing for the levy and collection of the
Special Taxes.
"CFD" means Community Facilities District No. 97-2 (Preserve Maintenance District) of the
City of Chula Vista.
"City" means the City of Chula Vista.
"City Clerk" means the City Clerk for the City of Chula Vista or his or her designee.
"City Manager" means the City Manager for the City of Chula Vista or his or her designee.
"Community Purpose Facility Property" or "CPF Property" means all Assessor’s
Parcels which are classified as community purpose facilities and meet the requirements of
City of Chula Vista Ordinance No. 2883. In the event that Chula Vista Ordinance No. 2883
is repealed, CPF Property means all Assessor’s Parcels which are classified as community
purpose facilities as defined in the Chula Vista Municipal Code Section 19.48.025.C (as
amended from time to time).
"Council" means the City Council of the City of Chula Vista, acting as the legislative body
of the CFD.
"County" means the County of San Diego, California.
"Developed Property" means all Taxable Property for which a building permit was issued
prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied.
"Final Map Property" means any residential lot or non-residential lot created by a Final
Subdivision Map, but which is not classified as Developed Property.
"Final Subdivision Map" means a subdivision of property creating 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.
"Improvement Area C" or "Area C" means Improvement Area C of the CFD, as identified
on the boundary map for the CFD as amended from time to time.
Docusign Envelope ID: 8D0BC1DA-9C8F-4BD5-9CEA-E1BF2045BE9B
Resolution No. 2024-150
Page No. 9
"Land Use Class" means any of the classes listed in Table 1, Table 2, or Table 3.
"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.
"Non-Residential Property" means all Assessor’s Parcels of Developed Property for which
a building permit(s) has been issued for a structure or structures for non-residential use.
"Operating Fund" means a fund that shall be maintained within the CFD for each Fiscal
Year to pay for Resource Monitoring and/or Preserve Operations and Maintenance activities
and Administrative Expenses.
"Operating Fund Balance" means the amount of funds in the Operating Fund at the end of
the preceding Fiscal Year.
"Operating Fund Requirement" means for any Fiscal Year an amount equal to the
Resource Monitoring Fund Requirement and the Preserve Operations and Maintenance Fund
Requirement for the current Fiscal Year in which Special Taxes are levied.
"Preserve Operations and Maintenance" means those activities described in Attachment
A hereto which is incorporated herein by this reference.
"Preserve Operations and Maintenance Fund Requirement" means for any Fiscal Year
an amount equal to the budgeted costs for Preserve Operations and Maintenance plus a pro-
rata share of the budgeted Administrative Expenses of the District for the current Fiscal Year
in which Special Taxes are levied.
"Property Owner Association Property" means any property within the boundaries of Area
C of the CFD that is owned by, or irrevocably dedicated as indicated in an instrument recorded
with the County Recorder to, a property owner association, including any master or sub-
association.
"Public Property" means any property within the boundaries of Area C of the CFD that is,
at the time of the CFD formation, expected to be used for any public purpose and is owned
by or dedicated to the federal government, the State, the County, the City or any other public
agency.
"Reserve Fund" means a fund that shall be maintained for the CFD each Fiscal Year to
provide necessary cash flow for the first six months of each Fiscal Year, working capital to
cover monitoring, maintenance and repair cost overruns and delinquencies in the payment of
Special Taxes and a reasonable buffer to prevent large variations in annual Special Tax levies.
"Reserve Fund Balance" means the amount of funds in the Reserve Fund at the end of the
preceding Fiscal Year.
"Reserve Fund Requirement" means an amount equal to up to 100% of the Operating Fund
Requirement for any Fiscal Year.
"Residential 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.
Docusign Envelope ID: 8D0BC1DA-9C8F-4BD5-9CEA-E1BF2045BE9B
Resolution No. 2024-150
Page No. 10
"Resource Management Plan" means the Otay Ranch Phase 1 Resource Management Plan
also referred to as “The Otay Ranch Resource Management Plan” dated October 28, 1993,
and the Otay Ranch Phase 2, Resource Management Plan dated June 4, 1996, as both such
plans may be amended from time to time.
"Resource Monitoring Program" means those described in Attachment B hereto which is
incorporated herein by this reference.
"Resource Monitoring Fund Requirement" means for any Fiscal Year an amount for each
Improvement Area equal to the Improvement Area’s fair share of the budgeted costs of the
Resource Monitoring Program plus a pro rata share of the budgeted Administrative Expenses
of the CFD for the current Fiscal Year in which Special Taxes are levied. Improvement Area
C’s “fair share” shall be based on Improvement Area C’s percentage of the total acreage
within the Otay Ranch General Development Plan Planning Area for which a Resource
Monitoring Program funding mechanism has been established.
"Special Tax" means the Special Tax levied pursuant to the provisions of sections C and D
below in each Fiscal Year on each Assessor's Parcel of Developed Property and Undeveloped
Property in Area C to fund the Special Tax Requirement.
"Special Tax Requirement" means that amount required in any Fiscal Year for Area C to:
(i) pay the Resource Monitoring Fund Requirement, and Preserve Operations and
Maintenance Fund Requirement, less the Operating Fund Balance, and (ii) pay any amounts
required to establish or replenish the Reserve Fund to the Reserve Fund Requirement; (iii)
pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for
Special Taxes levied in the previous Fiscal Year.
"State" means the State of California.
"Taxable Property" means all of the Assessor's Parcels within the boundaries of Area C of
the CFD that are not exempt from the Special Tax pursuant to law or as defined below.
"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 using the definitions above, all Taxable Property within Annexation No. 13 of
Improvement Area C of the CFD shall be classified as Category I, Category II, Category III or
Exempt as defined in Section C. The Taxable Property shall further be classified as Developed
Property, Final Map Property or Undeveloped Property and shall be subject to Special Taxes
pursuant to Sections C and D below. Developed Property shall be further assigned to a Land Use
Class as specified in Table 1.
C. MAXIMUM SPECIAL TAX RATE
CATEGORY I
Category I includes Developed Property within the District (“Category I”).
The Maximum Special Tax for the Resource Monitoring Program and Preserve Operations and
Maintenance for Fiscal Year 2023-2024 on Developed Property are the rates set forth in Table
1 below. For Residential Property, the Special Tax shall be levied based upon Building Square
Footage and for Non-Residential Property shall be levied based on Acreage.
Docusign Envelope ID: 8D0BC1DA-9C8F-4BD5-9CEA-E1BF2045BE9B
Resolution No. 2024-150
Page No. 11
TABLE 1
Maximum Special Tax for Category I
Community Facilities District No. 97-2
Improvement Area C
(Fiscal Year 2023-2024)
Description Resource
Monitoring
Operation &
Maintenance
Total
Residential $0.0090/sq ft $0.0143/sq ft $0.0232/sq ft
Non-Residential $145.77/acre $231.42/acre $377.19/acre
CATEGORY II
Category II includes each Assessor’s Parcel of Taxable Property within the District for which
a
Final Map has been recorded, but which is not classified as a Developed Parcel (“Category II”).
The Maximum Special Tax for the Resource Monitoring Program, and Preserve Operations and
Maintenance approved for Fiscal Year 2023-2024 on each Assessor’s Parcel in Category II is
the rate set forth in Table 2 below (said amount to be levied pro rata for any portion of an Acre).
TABLE 2
Maximum Special Tax for
Category II Community Facilities
District No. 97-2 Improvement
Area C
(Fiscal Year 2023-2024)
Resource
Monitoring
Operation &
Maintenance
Total
$145.77/acre $231.42/acre $377.19/acre
CATEGORY III
Category III includes each Assessor’s Parcel of Taxable Property within the District not subject
to Special Tax under any other category (“Category III”).
The Maximum Special Tax approved for Fiscal Year 2023-2024 on Taxable Property within
Category III is the rate set forth in Table 3 below (said amount to be levied pro rata for any
portion of an Acre).
Docusign Envelope ID: 8D0BC1DA-9C8F-4BD5-9CEA-E1BF2045BE9B
Resolution No. 2024-150
Page No. 12
TABLE 3
Maximum Special Tax for
Category III Community
Facilities District No. 97-2
Improvement Area C
(Fiscal Year 2023-2024)
Resource
Monitoring
Operation &
Maintenance
Total
$94.0856/acre $149.3685/acre $243.45/acre
EXEMPT CATEGORY
The Exempt Category includes each property owned, conveyed or irrevocably offered for
dedication to a public agency, or land which is in the public right-of-way, unmanned utility
easements which make utilization for other than the purpose set forth in the easement
impractical, common areas, private streets and parks, and open space lots (“Exempt Category”).
SPECIAL CASES
In some instances, an Assessor’s Parcel of Developed Property may contain more than one Land
Use Class and be considered “Special Case”. The Maximum Special Tax that may be levied on
an Assessor’s Parcel identified as Special Case shall be the sum of the Maximum Special Tax
levies that may be levied on all Land Use Classes located on that Assessor’s Parcel. The CFD
Administrator shall determine the allocation to each Land Use Class.
ANNUAL ESCALATION OF MAXIMUM SPECIAL TAX
The Maximum Special Tax as shown in the tables above that may be levied on each Assessor’s
Parcel in Improvement Area C, Annexation No. 13, shall be increased each Fiscal Year
beginning in Fiscal Year 2024-2025 and thereafter by a factor equal to the annual percentage
change in the San Diego Metropolitan Area Consumer Price Index for All Urban Consumers
(CPI-U, All Items) or zero percent (0%), whichever is greater.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2024-2025, and for each following Fiscal Year, the Council shall
levy the Improvement Area C, Annexation No. 13, Special Tax at the rates established pursuant
to steps 1 through 4 below so that the amount of the Special Tax levied equals the Special Tax
Requirement. The Special Tax shall be levied each Fiscal Year as follows:
Step 1: Determine the revenue which could be generated by Parcels assigned to Category I by
multiplying the Building Square Footage for Parcels classified as Residential Parcels by the
Maximum Special Tax per Building Square Foot for the Resource Monitoring Program,
and Preserve Operations and Maintenance for Parcels and adding to that the maximum revenue
which could be generated by multiplying the total acres for Parcels classified as Non-Residential
Parcels by the Maximum Special Tax per Acre for the Resource Monitoring Program and
Preserve Operations and Maintenance.
Docusign Envelope ID: 8D0BC1DA-9C8F-4BD5-9CEA-E1BF2045BE9B
Resolution No. 2024-150
Page No. 13
Step 2: If the total revenue as calculated in Step 1 is greater than the estimated Special Tax
Liability for Improvement Area C, reduce the Special Tax for each Parcel proportionately so
that the Special Tax levy for the Fiscal Year is equal to the Special Tax Liability for the Fiscal
Year.
Step 3: If the total revenue as calculated in Step 1 is less than the Special Tax Liability for
Improvement Area C, a Special Tax shall be levied upon each Parcel within Improvement Area
C, classified as Category II. The Special Tax for Parcels assigned to Category II shall be
calculated as the lesser of:
The Special Tax Liability for Improvement Area C as determined by the City,
less the total revenue generated for all Parcels under Step 1 above, divided by
the total Acres for all Parcels within Improvement Area C assigned to
Category II,
OR
The Maximum Special Tax rate for Parcels assigned to Category II.
Step 4: If the total revenue as calculated in Step 1 and 3 is less than the Special Tax Liability,
for Improvement Area C, a Special Tax shall be levied upon each Parcel within Improvement
Area C classified as Category III. The Special Tax for Parcels assigned the Category III shall be
calculated as the lesser of:
The Special Tax Liability for Improvement Area C as determined by the City,
less the total revenue generated for all Parcels under Step 1 and 3 above,
divided by the total Acres for all Parcels within Improvement Area C
assigned to Category III,
OR
The Maximum Special Tax rate for Parcels assigned to Category III and
within Improvement Area C.
However, in the event it is determined that the Special Tax Liability for Improvement Area C
includes delinquent Special Taxes from Parcel in Category III from the prior Fiscal Year, the
City shall determine the amount of delinquent taxes that arose from such Parcels and identify
the owner(s). The amount of delinquent Special Taxes, if any, that arose from the applicable
owner(s) shall first be divided by the total Category III Acres owned by such owner(s) and
collected from the applicable owner(s) with the remaining portion of the Special Tax Liabil ity
not related to delinquent Special Taxes to be collected from all Parcels in Category III according
to the procedure set forth in the preceding paragraph.
Notwithstanding the above, under no circumstances will the Special Tax levied against any
Assessor’s Parcel of Residential Property or Multi-Family Property for which an occupancy
permit for private residential use has been issued be increased by more than ten percent (10%)
annually up to the Maximum Special Tax as a consequence of delinquency or defau lt by the
owner of any other Assessor's Parcel within Area C of the CFD.
Docusign Envelope ID: 8D0BC1DA-9C8F-4BD5-9CEA-E1BF2045BE9B
Resolution No. 2024-150
Page No. 14
E. APPEALS
Any landowner or resident who pays the Special Tax and believes that the amount of the Special
Tax levied on their Assessor’s Parcel is in error shall first consult with the CFD Administrator
regarding such error. If following such consultation, the CFD Administrator determines that an
error has occurred; the CFD Administrator may amend the amount of the Special Tax levied on
such Assessor’s Parcel. If following such consultation and action, if any, by the CFD
Administrator, the landowner or resident believes such error still exists; such person may file a
written notice with the City Clerk of the City appealing the amount of the Special Tax levied on
such Assessor’s Parcel. Upon the receipt of any such notice, the City Clerk shall forward a copy
of such notice to the City Manager who shall establish as part of the proceedings and
administration of the CFD, a special three-member Review/Appeal Committee. The
Review/Appeal Committee may establish such procedures, as it deems necessary to undertake
the review of any such appeal. The Review/Appeal Committee shall interpret this Rate and
Method of Apportionment and make determinations relative to the annual administration of the
Special Tax and any landowner or resident appeals, as herein specified. The decision of the
Review/Appeal Committee shall be final and binding as to all persons.
F. MANNER OF COLLECTION
Special Taxes levied pursuant to Section D above shall be collected in t he same manner and at
the same time as ordinary ad valorem property taxes; provided, however, that the CFD
Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or
in a different manner if necessary to meet the financial obligations of Area C of the CFD or as
otherwise determined appropriate by the CFD Administrator.
G. TERM OF SPECIAL TAX
Taxable Property in Improvement Area C of the CFD shall remain subject to the Special Tax in
perpetuity.
Docusign Envelope ID: 8D0BC1DA-9C8F-4BD5-9CEA-E1BF2045BE9B
Resolution No. 2024-150
Page No. 15
Attachment A
Description of Preserve Operations and
Maintenance
Preserve Operations and Maintenance includes the maintenance, operation, and management of
the public or private property within boundaries of the Otay Ranch Preserve, as such boundaries
may be modified from time to time, required by the Resource Management Plan to be maintained
as open space or habitat preservation land or both. Such maintenance, operations and
management shall include, but not be limited to, the following:
(i) Preserve Maintenance. Development, implementation and ongoing
provision of programs to maintain, operate and manage preserve habitat
values through: cultivation, irrigation, trimming, spraying, fertilizing,
and/or treatment of disease or injury; removal of trimmings, rubbish,
debris and other solid waste; maintenance of trails; removal and control
of exotic plant species (weeds); and control of cowbirds through
trapping.
(ii) Security, Development, implementation and ongoing provision of
security programs to: enforce "no trespassing" rules; curtail activities that
degrade resources, such as grazing, shooting, and illegal dumping;
remove trash, litter, and other debris; control access; prohibit off-road
traffic; and maintain fences and trails.
(iii) Preserve improvements: Acquire equipment and/or install improvements
necessary to maintain, operate and manage the open space and habitat
preservation land described above.
The above description of the Preserve Operations and Maintenance is general in nature. The
actual maintenance, operations and management of the open space and habitat preservation land
within the Otay Ranch Preserve may be modified from time to time as necessary in order to
effectively provide such services in compliance with the requirements of the Resource
Management Plan.
Docusign Envelope ID: 8D0BC1DA-9C8F-4BD5-9CEA-E1BF2045BE9B
Resolution No. 2024-150
Page No. 16
Attachment B
Description of Resource Monitoring
Implement the annual biota monitoring and reporting program consistent with the Resource
Management Plan to identify changes in the quality and quantity of preserve resources including
wildlife species, sensitive plants and sensitive habitat types.
The above description of the Resource Monitoring is general in nature. The actual monitoring
and reporting program may be modified from time to time as necessary in order to effectively
provide such services consistent with the requirements of the Resource Management Plan.
Docusign Envelope ID: 8D0BC1DA-9C8F-4BD5-9CEA-E1BF2045BE9B