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HomeMy WebLinkAboutReso 2005-352 RESOLUTION NO. 2005-352 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING AN AMENDED BOUNDARY MAP FOR COMMUNITY FACILITIES DISTRICT NO. I3-1 (OTAY RANCH VILLAGE SEVEN), FORMING AND ESTABLISHING SUCH COMMUNITY FACILITIES DISTRICT 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 ofChula Vista (City Council) has, by the adoption on September 20,2005 of Resolution No. 2005-319 (Resolution ofIntention), 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 of1982," being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (Act) and the City ofChula Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by the City ofChula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (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. I3-1 (Otay Ranch Village Seven) (District); and WHEREAS, notice of a public hearing relating to the establishment of the 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 of the hearing to establish such District; and, WHEREAS, on September 20,2005, the City Council adopted its Resolution No. 2005-318 adopting a map showing the proposed boundaries of the District and such map was subsequently recorded in the office of the County Recorder of the County of San Diego (County Recorder) at Page 64 of Book 39 of the Book of Maps of Assessment and Community Facilities Districts for such County (Original Boundary Map); and WHEREAS, subsequent to the adoption and recordation of the Original Boundary Map, Parcel Map No. 15134 was approved and recorded in the office of the County Recorder on September 27,2005 as Instrument No. 2005-0836547 for Tract No. 05-09 Otay Ranch Village 7 "A" Map No. 1; and WHEREAS, the recordation of Parcel Map No. 15134 created legal parcels that enable the amendment of the Original Boundary Map to exclude certain properties that were not intended to be included in the District; and Resolution No. 2005-352 Page 2 WHEREAS, a map showing the amended boundaries of the District and designated as "Amended Boundaries of Community Facilities District No. 13-1 "Otay Ranch Village Seven" City of Chula Vista, County of San Diego, State of California" (Amended Boundary Map) has been prepared and submitted to the City Council for its review and approval; and WHEREAS, by the adoption of the Resolution of Intention, the City Council declared its intention to authorize the levy of special taxes within the District pursuant to the rate and method of apportionment of such speciaJ taxes (Original Rate and Method); and WHEREAS, the OriginaJ Rate and Method referred to two tax zones, Zones A and B, by reference to the Original Boundary Map which was Exhibit A to the Original Rate and Method; and WHEREAS, the approval of the Amended Boundary Map will require a modification to the Original Rate and Method to substitute the Amended Boundary Map for the Original Boundary Map as Exhibit A to the Original Rate and Method; and WHEREAS, a revised rate and method of apportionment of the special taxes (Amended Rate and Method) substituting the Amended Boundary Map for the Original Boundary Map as Exhibit A to such rate and method has been presented to the City Council for its review and approval; and WHEREAS, the moditication of the rate and method of apportionment by the approval of the Amended Rate and Method will not increase the probable tax to be paid by the owner of any lot or parcel; and WHEREAS, all communications relating to the establishment of the District, the financing of certain 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 of the District for at least the preceding ninety (90) days, the authorization to levy special taxes within the District shall be submitted to the landowners of the District, such landowners being the qualified electors as authorized by law. NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: SECTION 1. RECITALS. The above recitals are all true and correct. Resolution No. 2005-352 Page 3 SECTION 2. DETERMINA nONS. It is hereby detennined by this City Council that: A. All prior proceedings pertaining to the fonnation of the District were valid and taken in confonnity with the requirements of the law, and specifically the provisions of the Community Facilities District Law, and that this finding and detennination is made pursuant to the provisions of Government Code Section 53325.1. B. The written protests received, if any, do not represent a majority 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 ofCalifomia. C. The District as proposed confonns with the City ofChula Vista Statement of Goals and Policies Regarding the Estab]ishment of Community Facilities Districts (Goals and Policies), as amended. D. Less than twelve (12) registered voters have resided within the territory of the District for each of the ninety (90) days preceding the close of the public hearing, therefore, pursuant to the Act the qualified electors of the District shall be the landowners of the District as such tenn is defined in Government Code Section 533] 7(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 ofland 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 ]25 days following the adoption of any resolution fonning and establishing the District. SECTION 3. COMMUNITY FACILITIES DISTRICT REPORT. The Community Facilities District Report for the District (Report), as now submitted by McGill Martin Self, ]nc., Special Tax Consultant, shall stand as the report as required pursuant to Government Code Section 5332].5 for all future proceedings and all tenns and contents are approved as set forth therein. SECTION 4. NAME OF DISTRICT. The City Council does hereby establish and declare the fonnation of the District known and designated as '"Community Facilities District No. 13-] (Otay Ranch Village Seven)." ~~-~.- Resolution No. 2005-352 Page 4 SECTION 5. BOUNDARIES OF DISTRICT. The boundaries of the District are generally described as all property within the amended boundaries of the District, as shown on the Amended Boundary Map, a copy of which is on file in the Office of the City Clerk. The Amended Boundary Map is hereby approved and shall supercede and replace the Original Boundary Map. The City Clerk is hereby directed to record or cause the recordation of a copy of the Amended Boundary Map with the correct and proper endorsements thereon with the County Recorder, all in the manner and form provided for in Sections 3110 and 3111 of the Streets and Highways Code of the State of California. SECTION 6. DESCRIPTION OF THE PUBLIC FACILITIES AUTHORIZED TO BE FINANCED. A general description of the public facilities which are proposed to be financed under these proceedings, is set forth in Exhibit A attached hereto and incorporated herein by this reference. The facilities 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 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 further description of the 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 facilities, the financing of those incidental expenses authorized pursuant to the Act 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 amended rate and method of the special tax proposed to be levied within the District, reference is made to the Amended Rate and Method attached and incorporated as Exhibit "B" hereto, 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. The Amended Rate and Method shall supercede and replace the Original Rate and Method. The special tax shall be utilized to pay directly for the previously described facilities, to pay debt service on bonds issued by the District to assist in financing such 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. Resolution No. 2005-352 Page 5 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 Amended Rate and Method. Upon recordation of a Notice of Special Tax Lien pursuant to Section 3114.5 of the Streets and Highways Code of the State of California against the property within the District, a continuing lien to secure each levy of the 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 file 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 ofthe State of California, are as follows: Engineering Department City ofChula Vista 276 Fourth Avenue Chula Vista, CA 92010 (619) 691-5021 _,~ ~,,~___'_"_"..__~_'_r--r----..,.,.-~..,.,..._""_',"" "_~_~ Resolution No. 2005-352 Page 6 SECTION 10. SUBSTITUTION F ACILITlES. The description of the 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 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 levy of the special tax within the District to the qualified electors thereof, such electors being the landowners in the District, with each landowner having one (I) voter for each acre or portion thereof of land, which he or she owns, within the District. Prepared by Approved as to form by ~y~/ SOhaib AI-Agha City Engineer (A T'V'lc~~ Ann Moore City Attorney PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 25th day of October, 2005, by the following vote: AYES: NAYS: ABSENT: Councilmembers: Castaneda, McCann, Rindone, and Padilla Councilmembers: None Councilmembers: ATTEST: ~--;Lu~ -;J~ Susan Bigelow, MMC, Ci~~erk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certifY that the foregoing Resolution No. 2005-352 was duly passed, approved, and adopted by the City Council at a regular meeting ofthe Chula Vista City Council held on the 25th day of October 2005. Executed this 25th day of October 2005. ~ :Lu-iL-t~J~ Susan Bigelow, MMC, City CI rk Resolution No. 2005-352 Page 7 EXHIBIT A DESCRIPTION OF TYPES OF FACILITIES The public facilities authorized to be financed by the levy of special taxes within the District shall include the following: A. The following backbone streets and related improvements, including without limitation, grading, paving, slope landscaping, sewers, traffic signals, drainage improvements, adjacent trail system and public utilities: 1. La Media from Birch to the southwest property line 2. Santa Luna 3. Magdalena Avenue; B. Other street improvements authorized to be financed from the proceeds of the Transportation Development Impact Fee; C. Other public improvements authorized to be financed from the proceeds of the Public Facilities Development Impact Fee; and D. Construction and installation of trunk sewer in Flishbein and Kincaid and appurtenant improvements. Resolution No. 2005-352 Page 8 EXHIBIT ~ AMENDED RATE AND METHOD OF APPORTIONMENT FOR CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 13-1 (Otay Ranch Village Seven) 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. 13-1 (CFD No. 13-1) and collected each Fiscal Year commencing in Fiscal Year 2006-2007 in an amount determined by the City Council through the application of the appropriate Special Tax for "Developed Property", "Undeveloped Property" and "Contingent Taxable Property" as described below. All of the Taxable Property CFD No. 13-1, 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 te=s hereinafter set forth have the following meaning: .. 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 parcel. If the preceding maps for a land area are not available, the Acreage of such land area shall be determined by the City Engineer. "Act" means the Mello-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 Expense Requirement" means an annual amount equal to $75,000, or such lesser amount as may be designated by written instruction from an Authorized Representative to the Fiscal Agent, to be allocated as the first priority of Special Taxes received each Fiscal Year for the payment of Administrative Expenses. "Administrative Expenses" means the actual or reasonably estimated costs directly related to the administration of CFD No. 13-1 including, but not limited to, the following: 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 No. 13-1 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 13-1 or any designee thereof of providing continuing disclosure; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 13-1 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 City of ChuZa Vista Community Facilities District No 13-1 Olay Ranch VillaRe Seven August 30, 2005 Amended October 3, 2005 PaRe Z Resolution No. 2005-352 Page 9 Expenses shall also include amounts estimated or advanced by the City or CFD No. 13-1 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. "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 an Assessor's Parcel number. "Assigned Special Tax" means the Special Tax for each Land Use Category of Developed Property as determined in accordance with Section C.I.a. "Available Funds" means the balance in the reserve fund established pursuant to the terms of any Indenture in excess of the reserve requirement as defined in such Indenture, delinquent Special Tax payments not required to fund the Special Tax Requirement for any preceding Fiscal Year, Special Tax prepayments collected to pay interest on Bonds, and other sources of funds available as a credit to the Special Tax Requirement as specified in such Indenture. "Backup Special Tax" means the Backup Special Tax amount set forth in Section C.1.b. "Bonds" means any bonds or other debt (as defined in the Act), whether in one or more series, issued by CFD No. 13-1 under the Act. "Bond Year" means a one-year period beginning on September 2nd in each year and ending on September 1st in the following year, unless defined differently 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 No. 13-1" means City ofChula Vista, Community Facilities District No. 13-I. "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. "Contingent Taxable 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 City of Chula Vista Community Facilities- District No. j 3-1 Otay Ranch Village Seven August 30. 2005 Amended October 3, 2005 Page 2 Resolution No. 2005-352 Page 10 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. "Council" means the City Council of the City, acting as the legislative body of CFD No. 13-1. "County" means the County of San Diego. "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. "Exempt Property" means all Assessors' Parcels that are exempt from the Special Tax pursuant to Section E.1. "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 plan pursuant to California Civil Code 1352, that 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 suppl=enting the same. "Land Use Class" means any of the classes listed in Table 1 of Section C.1.a. "Lot(s)" means an individual legal lot created by a Final Subdivision Map for which a building permit for residential construction has been or could be issued. Notwithstanding the foregoing, in the case of an individual legal lot created by such a Final Subdivision Map upon which condominium units are entitled to be developed but for which a condominium plan has not been recorded, the number of Lots allocable to such legal lot for purposes of calculating the Backup Special Tax applicable to such Final Subdivision Map shall equal the number of condominium units which are permitted to be constructed on such legal lot as shown on such Final Subdivision Map. "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 Chu/a Vista Community Facilities District No. /3-1 Otay Ranch Vil/a"e S~en ~---_. August 30, 2005 Amended October 3, 2005 Po"e 3 Resolution No. 2005-352 Page II "Non-Residential Property" means all Assessor's Parcels of Developed Property, for which a building pem1.it(s) has been issued to allow the construction of one or more buildings or structures for a non-residential use. "Occupied Residential Property" means all Assessors' Parcels of Residential Property for which title is owned by an end user (homeowner). "Open Space" means property within the boundaries of CFD No. 13-1 which (a) has been designated with specific boundaries and acreage on a Final Subdivision Map as open space (b) is classified by the County Assessor as open space (c) has been irrevocably offered for dedication as open space to the federal government, the State of California, the County, the City, 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" mean all Bonds, which remain outstanding as defined ill the Indenture. "Property Owner Association Property" means any property within the boundaries of CFD No. 13-1 which is (a) owned by a property owner association or (b) designated with specific boundaries and acreage on a 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 Special Tax levy to the Assigned Special Tax or the Backup Special Tax is equal for all Assessors' Parcels of Developed Property within CFD No. 13-1. For Undeveloped Property or Contingent Taxable 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 Undeveloped Property and equal for all Assessor's Parcels of Contingent Taxable Property within CFD No. 13-1. "Public Property" means any property within the boundaries of CFD No. 13-1 that 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 a Final Subdivision Map as property which will be owned by a public agency. For purposes of 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 pem1.it has been issued for purposes of constructing one or more residential dwelling units. "Residential Floor Area" means all of the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The dete=ination of Residential Floor Area shall be made by the CFD Administrator by reference to appropriate records kept by the City's City of Chula Vista Community Facilities District No. 13-1 Otay Ranch VillaRe Seven Augu.rt 30, 2005 Amended October 3, 2005 PaRe 4 Resolution No. 2005-352 Page 12 Building Department. Residential Floor Area for a residential structure will be based on the building permit(s) issued for such structure prior to it being classified as Occupied Residential Property, and shall not change as a result of additions or modifications made to such structure after such classification as Occupied Residential Property. "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 CFD No. 13-1 to: (i) Pay Administrative Expenses in an amount equal to Administrative Expense Requirement or such other amount as may be designated by the City (ii) pay annual debt service on all Outstanding Bonds (as defined in Section A) due in the Bond Year beginning in such Fiscal Year; (iii) pay other periodic costs on Outstanding Bonds, including but not limited to, credit enhancement and rebate payments on Outstanding' Bonds; (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 No. 13-1 provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on the Undeveloped Property for CFD No. 13-1; 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 No. 13-1 that are not exempt ITom the Special Tax pursuant to law or Section E below. "Trustee" means the trustee, fiscal agent, or paying agent under the bond indenture. "Undeveloped Property" means, for each Fiscal year, all Taxable Property not classified as Developed Property or Contingent Taxable Property. "Zone A" means the specific geographic area designated as such and as depicted in Exhibit A attached hereto. "Zone B" means the specific geographic area designated as such and as depicted in Exhibit A attached hereto. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, all Assessor's Parcels of Taxable Property within CFD No. 13-1 shall be (a) categorized as being located in either Tax Zone A or Zone B, (b) classified as Developed Property, Undeveloped Property or Contingent Taxable Property and (c) shall be subject to the levy of annual Special Taxes determined pursuant to Sections C and D below. Furthermore, all Developed Property shall then be classified as Residential or Non" Residential Property. City of Chula Vista Community Facilities District No. 13-1 Otay Ranch Vil/a?:e S([Ven August 30, 2005 Amended October 3, 2005 Pa?:e 5 Resolution No. 2005-352 Page 13 C. MAXIMUM ANNUAL SPECIAL TAX RATE 1. Developed Property The Maximum Annual Special Tax for each Assessor's Parcel of Residential Property or Non-Residential Property shaII be the greater of (1) the Assigned Special Tax described in Table I or (2) the Backup Special Tax computed pursuant to b. on next page. a. Assie:ned Special Tax The Assigned Special Tax for each Assessor's Parcel of Developed Property is shown in Table 1. TABLE 1 Assigned Special Tax for Developed Property within Zone A and Zone B Land Use Class Descri tion Assi ned S ecial Tax $2,750 per unit plus $.45 per square foot of Residential Floor Area $6,000 per Acre 1 Residential Property 2 Non-Residential Pro e b. Backup Special Tax When a Final Subdivision Map or a condominium plan is recorded within Zone A or Zone B, the Backup Special Tax for Assessor's Parcels of Developed Property classified as Residential Property or Non-Residential Property shall be determined as follows: For each Assessor's Parcel of Residential Property or for each Assessor's Parcel of Undeveloped Property to be classified as Residential Property upon its development within the Final Subdivision Map area, the Backup Special Tax shaII be the rate per Lot calculated according to the following fo=ula: Zone A $59,505 x A B= ------------------------ L City of Chula Vista Community Facilities District No. 13-1 Otay Ranch Villa?;e Seven August 30, 2005 Amended October 3, 2005 Pa?;e 6 Resolution No. 2005-352 Page 14 Zone B $37,818 x A B= ------------------------ L The terms have the following meanings: B = Backup Special Tax per Lot in each Fiscal Year. A = Acreage classified or to be classified as Residential Property in such Final Subdivision Map. L = For a Final Subdivision Map, the number of Lots which are classified or 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 Undeveloped Property to be classified as Non-Residential Property within the Final Subdivision Map area, the Backup Special Tax shall be determined by multiplying $59,505 for Zone A and $37,818 for 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 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 total amount of Backup Special Tax that would have been generated if such change did not take place. 2. Undeveloped Property and Contingent Taxable Property-- The Maximum Annual Special Tax for each Assessor's Parcel of Undeveloped Property and Contingent Taxable Property shall be $59,505 per Acre for Zone A and $37,818 per Acre for Zone B. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2006-07 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 each Assessor's Parcel of Developed Property within Zone A and Zone B at a rate up to 100% of the applicable Assigned Special Tax to satisfy the Special Tax Requirement. City of Chula Vista Community Facilities District No_ 13-1 Otay Ranch Villa!?e Seven August 30, 2005 Amended October 3, 2005 Pa!?e 7 ...J Resolution No. 2005-352 Page 15 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 Undeveloped Property within Zone A and Zone B, at a rate up to 100% of the MaXimum Annual Special Tax for Undeveloped Property. In dete=ining the Acreage of an Assessor's Parcel of Undeveloped Property for purposes of dete=ining 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 entitlements approved by the City that designates such Acreage for a use that would be classified as Open Space, Property Owner Association Property or Public Property. Third: If additional monies are needed to satisfy the Special Tax Requirement after the first two 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 then the Almua1 Special Tax shall be increased at the same percentage from the Assigned Special Tax up to the Maximum Annual Special Tax for each such Assessor's Parcel. Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax shall be levied Proportionately on all Contingent Taxable Property at a rate up to 100% of the Maximum Annual Special Tax for Undeveloped Property. Notwithstanding the above, under no circumstances will 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 Assessor's Parcel. E. EXEMPTIONS 1. The CFD Administrator shall classify the following 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 shall reduce the sum of all Taxable Property to less than 10.56 Acres for Zone A and 20.81 Acres 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 10.56 Acres for Zone A and 20.81 Acres for Zone B will be classified as Contingent Taxable Property and shall be taxed pursuant to the fourth step of Section D. Exempt status for purposes of this paragraph will be assigned by the CFD Administrator in the chronological order in which property becomes Exempt Property. 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 City of Chula Vista Community Facilities District No. 13-1 Otay Ranch Village Seven August 30, 2005 Amended October 3, 2005 Fage 8 Resolution No. 2005-352 Page 16 which is classified as Contingent Taxable Property pursuant to E.I above shall be prepaid in full by the seller pursuant to Section H.I, 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 shall continue to be subject to the levy of the Special Tax as Contingent Taxable 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 E.1. above that would make such Assessor's Parcel eligible to be classified as Exempt 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 ofthe 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 CFD No. 13-1 and 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 No. 13-1, 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 may be accepted for payment of Special Taxes 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. City oj Chu/a Vista Community Facilities District No. 13-1 Otay Ranch Village Seven August 30, 2005 Amended October 3. 2005 Page 9 Resolution No. 2005-352 Page 17 H. PREPAYMENT OF SPECIAL TAX The following definition applies to this Section H: "CFD Public Facilities" means those public facilities authorized to be financed by CFD No. 13-1. "CFD Public Facilities Costs" means either $ 15.5 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 pe=anently satisfied for an Assessor's Parcel of Developed Property, Undeveloped Property for which a building perri:tit has been issued, or Contingent Taxable Property. The Maximum Annual Special Tax obligation applicable to such Assessor's Parcel may be fully prepaid and the obligation of the Assessor's Parcel to pay the Special Tax pe=anently satisfied as described herein; provided, however that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Assessor's 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. City of Chula Vista Community Facilities District No. 13-1 Otay Ranch Village Seven August 30,2005 Amended October 3, 2005 Page 10 Resolution No. 2005-352 Page 18 The Prepayment Amount (defined below) shall be calculated as summarized below (capitalized te=s as defined below): Bond Redemption Amount plus Redemption Premium plus Future Facilities Amount plus Defeasance Amount plus Prepayment Fees and Expenses less Reserve Fund Credit less CaDitalized Interest Credit Total: equals Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount (defined below) shall be calculated as follows: Step No.: 1. For Developed Property, compute the Maximum Annual Special Tax for the Assessor's Parcel to be prepaid. For Assessor's Parcels of Undeveloped Property for which a building permit has been issued 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 Contingent Taxable Property to be prepaid, compute the Maximum Annual Special Tax for that Assessor's Parcel using the Maximum Annual Special Tax for 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 No. 13-I excluding any 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 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 for CFD No. 13-I have not been issued, then compute the Future Facilities Costs. 6. Multiply the quotient computed pursuant to step 2 by the amount dete=ined 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 Chu/a Vista Community Facilities District No. 13-1 Otay Ranch VilIa:;;e Seven August 30, 2005 Amended October 3, 2005' Pa:;;e II ~ Resolution No. 2005-352 Page 19 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 of CFD No. 13-1, 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 Fees 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, as determined 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 event shall such amount be less than zero. 14. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the 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 shall be retained by CFD No. 13-I. The amount computed pursuant to step 6 shall be deposited in the Construction Fund. City of Chu/a Vista Community Faci/ities District No. 13-1 Otay Ranch VillaRe Seven August 30, 2005 Amended October 3. 2005 PaRe 12 Resolution No. 2005-"352 Page 20 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 nom 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 CFD No. 13-1 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 Undeveloped Property for which a building permit has been issued may be partially prepaid. The amount of the prepayment shall be calculated as in Section H 1; except that a partial prepayment shall be calculated according to the following formula: PP = (PE-A 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 Chu/a Vista Community Facilities District No.1 3-1 Otay Ranch Village Seven August 30, 2005 Amended October 3, 2005 POKe 13 Resolution No. 2005-352 Page 21 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.1, and (ii) indicate in the records of CFD No. 13-1, that there has been a partial prepayment of the 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 co=encing in Fiscal Year 2006-2007 to the extent necessary to fully satisfy the Special Tax Requirement and shall be levied for a period no longer than the 2046-2047 Fiscal Year. City of Chu/a Vista Community Facilities District No. 13-1 Otay Ranch Villa!;e Seven August 3D, 2005 Amended October 3, 2005 Po!;e14