HomeMy WebLinkAboutOrd 2026-3626ORDINANCE NO. 3626
AN ORDINANCE 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) OF THE CITY OF CHULA VISTA,
COUNTY OF SAN DIEGO, STATE OF CALIFORNIA,
AUTHORIZING THE LEVY OF SPECIAL TAXES IN
IMPROVEMENT AREA “D,” ANNEXATION NO. 1 OF SUCH
COMMUNITY FACILITIES DISTRICT
WHEREAS, the City Council (“City Council”) of the City of Chula Vista, California
(“City”), has undertaken proceedings to designate an improvement area to an existing community
facilities district and annex certain property thereto, held a public hearing, conducted an election
and received a favorable vote from the qualified electors authorizing the levy of Special Taxes in
said improvement area, all as authorized 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”). The community facilities district and the
improvement area are known as Community Facilities District No. 97-2 (“CFD No. 97-2”) and
Improvement Area “D,” respectively, and the territory annexed thereto is referred to as Annexation
No. 1 (“Territory”).
NOW, THEREFORE, the City Council of the City of Chula Vista does ordain as follows:
Section I. This City Council does, by the passage of this Ordinance, authorize the levy of
Special Taxes on taxable properties located within Improvement Area “D” of CFD No. 97-2,
including the Territory, pursuant to the Rate and Method of Apportionment of Special Tax for
Improvement Area “D” of CFD No. 97-2 as set forth in Exhibit “A” attached hereto and
incorporated herein by this reference (“Rate and Method”).
Section II. This City Council, acting as the legislative body of CFD No. 97-2, is hereby
further authorized, by resolution, to annually determine the Special Tax (as defined in the Rate and
Method) to be levied within Improvement Area “D” of CFD No. 97-2 for the then current tax year
and future tax years; provided, however, the Special Tax to be levied shall not exceed the
maximum Special Tax authorized to be levied pursuant to the Rate and Method.
Section III. The Special Taxes herein authorized to be levied, to the extent possible, shall
be collected in the same manner as ordinary ad valorem property taxes are collected and shall be
subject to the same penalties and the same procedure, sale and lien priority in any case of
delinquency as applicable for ad valorem taxes; provided, however, Improvement Area “D” of
CFD No. 97-2 may utilize a direct billing procedure for any Special Taxes that cannot be collected
on the County of San Diego 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.
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Ordinance No. 3626
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Section IV. The Special Taxes authorized to be levied shall be secured by the lien imposed
pursuant to Section 3114.5 and 3115.5 of the California Streets and Highways Code, which lien
shall be a continuing lien and shall secure each levy of the Special Taxes.
Section V. Severability. If any portion of this Ordinance, or its application to any person
or circumstance, is for any reason held to be invalid, unenforceable or unconstitutional, by a court
of competent jurisdiction, that portion shall be deemed severable, and such invalidity,
unenforceability or unconstitutionality shall not affect the validity or enforceability of the
remaining portions of the Ordinance, or its application to any other person or circumstance. The
City Council of the City of Chula Vista hereby declares that it would have adopted each section,
sentence, clause or phrase of this Ordinance, irrespective of the fact that any one or more other
sections, sentences, clauses or phrases of the Ordinance be declared invalid, unenforceable or
unconstitutional.
Section VI. Construction. The City Council of the City of Chula Vista intends this
Ordinance to supplement, not to duplicate or contradict, applicable state and federal law and this
Ordinance shall be construed in light of that intent.
Section VII. Effective Date. This Ordinance shall take effect and be in force on the
thirtieth day after its final passage.
Section VIII. Publication. The City Clerk shall certify to the passage and adoption of
this Ordinance and shall cause the same to be published or posted according to law.
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Presented by Approved as to form by
Roy Sapa’u Marco A. Verdugo
Deputy City Manager/Director of Development City Attorney
Services
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 18th day of August 2026, by the following vote:
AYES: Councilmembers: Chavez, Fernandez, Inzunza, Preciado, and McCann
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
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
Ordinance No. 3626 had its first reading at a regular meeting held on the 11th day of August 2026,
and its second reading and adoption at a regular meeting of said City Council held on the 18th day
of August 2026 and was duly published in summary form in accordance with the requirements of
state law and the City Charter.
Dated Kerry K. Bigelow, MMC, City Clerk
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9/1/2026
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EXHIBIT “A”
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT)
IMPROVEMENT AREA D
OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA
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 Improvement Area D of the CFD and
collected each Fiscal Year commencing with Fiscal Year 2025-2026 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 Improvement Area D 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 Acreage of a Parcel shall be
calculated to the nearest one-hundredth (1/100) of an acre. 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 D 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.
"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.
"Council" means the City Council of the City of Chula Vista, acting as the legislative body of the CFD.
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"County" means the County of San Diego, California.
"Fiscal Year" means the period starting July 1 and ending on the following June 30.
"Improvement Area D" or "Area D" means Improvement Area D of the CFD, as identified on the
boundary map for the CFD as amended from time to time.
“Initial Maintenance Period” means a minimum period of five (5) Fiscal Years commencing with Fiscal
Year 2026-2027 until the Fiscal Year in which the City formally accepts the public improvements associated
with Improvement Area D, for ongoing long-term management and periodic costs. During this period, the
Special Tax may be levied at a reduced level, as determined by the City, for the purpose of partially funding
maintenance obligations and establishing a Long-Term Management Reserve Fund to support long-term
management costs.
"Long-Term Management Plan" means the “Eastlake Storage Mitigation Project Long-Term Management
Plan” dated June 2025, prepared for the mitigation site located within the Salt Creek riparian corridor in
the Otay Ranch Preserve (the “Mitigation Site”),
"Long-Term Management Program" means the perpetual management, maintenance, monitoring,
reporting, and adaptive management activities required to be performed pursuant to the applicable Long-
Term Management Plan, including but not limited to, invasive species control, trash removal, site access
control, biological monitoring, reporting, and as-needed remedial or adaptive management actions
necessary to ensure the long-term sustainability, habitat function, and regulatory compliance of preserve
and mitigation areas following completion of Initial Maintenance Period and monitoring requirements.
"Long-Term Management Fund Requirement" means, for any Fiscal Year, an amount equal to the
Improvement Area D’s fair share of the budgeted costs of the Long -Term Management Program. Each
Improvement Area’s “fair share” shall be based on its proportionate benefit, acreage, or other allocation
methodology as determined in accordance with the applicable Rate and Method of Apportionment.
“Long-Term Management Reserve Fund” means, fund established and maintained by the CFD to
accumulate amounts over time to pay for periodic, non-annual, and as-needed costs of the Long-Term
Management Program that are not incurred on an annual basis, including, without limitation, adaptive
management measures, remedial actions, revegetation, increased monitoring, repair or replacement of
site improvements, to the extent such costs are identified in the Long -Term Management Plan as
occurring on a periodic or as-needed basis.
“Long-Term Management Reserve Fund Requirement” means, for any Fiscal Year, the amount
determined by the CFD Administrator to be deposited into the Long-Term Management Reserve Fund,
based on the annualized costs of periodic and non -annual activities identified in the Long-Term
Management Plan, such that sufficient funds are available when such costs are incurred.
"Management Fund" means a fund that shall be maintained within the CFD for each Fiscal Year to pay
the costs of the Long-Term Management Program for the Mitigation Site, including ongoing
management, maintenance, monitoring, reporting, and adaptive management activities, together with
applicable Administrative Expenses.
"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.
"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 D to fund
the Special Tax Requirement.
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"Special Tax Requirement" means for any Fiscal Year for Area D the amount required to be levied in
such Fiscal Year to: (i) pay the Long-Term Management Fund Requirement; (ii) pay any amounts required
to establish or replenish the Long-Term Management Reserve Fund to the Long-Term Management
Reserve Fund Requirement; (iii) Administrative Expenses; and (iv) 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 D of the CFD that
are not exempt from the Special Tax pursuant to law or as defined below.
B. Assignment to Categories of Special Tax
Each Fiscal Year, using the definitions above, all property within Improvement Area D of the CFD shall be
classified as Taxable Property or Exempt Property. Taxable Property shall be subject to Special Taxes
pursuant to Sections C and D below.
C. Maximum Special Tax Rate
Taxable Category
The Maximum Special Tax for Fiscal Year 2025-2026 are the rates set forth in Table 1 below.
TABLE 1
Maximum Special Tax
Community Facilities District No. 97-2 Improvement Area D
(Fiscal Year 2025-2026)
Long Term
Management Fund
Requirement
Long Term
Management Reserve
Fund Requirement &
Administrative
Expenses
Total Long-Term
Management Program
Costs
$990 / acre $473 / acre $1,463 / 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, and any property that is otherwise exempt from the levy of special
taxes pursuant to Government Code Section 53340(c) (“Exempt Category”).
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 D, shall be increased each Fiscal Year beginning in Fiscal Year 2026-2027 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.
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D. Method of Apportionment of the Special Tax
During the Initial Maintenance Period
During the Initial Maintenance Period, the Special Tax shall be levied at a reduced level, as determined
annually by the City, sufficient to fund a portion of the Special Tax Requirement and to establish and build
the Long-Term Management Reserve Fund. The City shall determine the percentage of the Maximum
Special Tax to be levied during the Initial Maintenance Period based on anticipated future maintenance
costs and required reserve levels, provided the Special Tax during the Initial Maintenance Period shall not
exceed the Special Tax Requirement. The Special Tax shall be apportioned to Parcels in accordance with
the methodology set forth in Steps 1 through 3 below, after applying such reduced levy.
Following the Initial Maintenance Period
Commencing in the first Fiscal Year following the Initial Maintenance Period, the Special Tax shall be
levied up to the full amount necessary to fund the Special Tax Requirement and shall be apportioned to
Parcels in accordance with Steps 1 through 3 below.
Step 1: Determine the maximum revenue that could be generated by applying the Maximum Special Tax
rates set forth in Table 1 (as such rates may be annually escalated pursuant to Section C) to all Parcels.
Step 2: If the total revenue calculated in Step 1 is greater than the Special Tax Requirement for
Improvement Area D, reduce the Special Tax for each Parcel proportionately so that the total Special Tax
levy for the Fiscal Year is equal to the Special Tax Requirement.
Step 3: In the event that the Special Tax Requirement for Improvement Area D includes amounts
attributable to delinquent Special Taxes from the prior Fiscal Year, the City shall determine the amount
of such delinquent Special Taxes and may identify the Parcels and owners associated with such
delinquencies. To the extent permitted by law, the City may levy and collect such delinquent amounts
from the applicable Parcels and/or owners. Any remaining portion of the Special Tax Requirement shall
be allocated and levied in accordance with Steps 1 through 2 above.
Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor’s
Parcel be increased by more than ten percent (10%) annually up to the Maximum Special Tax as a
consequence of delinquency or default by the owner of any other Assessor's Parcel within Area D of the
CFD.
E. Appeals
Any landowner or resident who pays the Special Tax and believes that the amount of the Special Tax
levied on their Assessor’s Parcel is in error shall first consult with the CFD Administrator regarding such
errors. 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 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
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 to all persons.
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F. Manner of Collection
Special Taxes levied pursuant to Section D above shall be collected in the same manner and at the same
time as ordinary ad valorem property taxes; provided, however, that the CFD Administrator may directly
bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to
meet the financial obligations of Area D of the CFD or as otherwise determined appropriate by the CFD
Administrator.
G. Term of Special Tax
Taxable Property in Improvement Area D of the CFD shall remain subject to the Special Tax in perpetuity.
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Attachment A
Description of Long-Term Management Plan
Implement the monitoring, maintenance, reporting, and adaptive management activities required
under the Long-Term Management Plan for the Salt Creek Mitigation Site including but not limited
to, invasive species control, trash removal, site access control, biological monitoring, reporting, and
as-needed remedial or adaptive management actions necessary to ensure the long-term
sustainability, habitat function, and regulatory compliance of preserve and mitigation areas
following completion of initial mitigation and monitoring requirements.
The activities described above are limited to those discrete tasks identified in the Long -Term
Management Plan and are intended to ensure the long-term sustainability and ecological function
of the Mitigation Site in perpetuity following completion of initial mitigation and monitoring
requirements.
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