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HomeMy WebLinkAbout2007/01/09 Item 6 CITY COUNCIL AGENDA STATEMENT ITEM TITLE: .=$"i;'f:. CITY OF -~ (HULA VISTA 01/09/07 Item L PUBLIC HEARING REGARDING THE FORMATION OF COMMUNITY FACILITIES DISTRICT NO. 13M (OTAY RANCH VILLAGE TWO) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, FORMING AND ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 13M (OTAY RANCH VILLAGE TWO), AND AUTHORIZING SUBMITTAL OF LEVY OF SPECIAL TAXES WITHIN THE CFD TO THE QUALITIED ELECTORS THEREOF SUBMITTED BY: REVIEWED BY: CITY ENGINEER ~ ~ INTERIMCITYMANAGER Ii 4/5THS VOTE: YES NO X BACKGROUND On November 21, 2006, the City Council initiated proceedings for the formation of CFD No. 13M by adoption of Resolutions 2006-349 through 2006-351. Tonight's action will be the next step in the proceedings to establish CFD No. 13M. This district will fund the perpetual operation and maintenance of (a) landscaping including, but not limited to, parkways, medians and slopes; (b) facilities that are directly related to storm water quality control; (c) walls and fencing; (d) trails; ( e) pedestrian bridges, including, but not limited to, graffiti removal; and (f) public lighting facilities. The City has retained the services of MuniFinancial as special tax consultant and Best, Best and Krieger, LLP as legal counsel to provide assistance during the proceedings. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed actIVIty for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because the creation of government funding mechanism is not considered a 6-1 1/9/07, Item~ Page 2 of6 project; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDATION That Council: 1. Open Public Hearing and receive testimony from the public, 2. Close the Public Hearing, 3. Approve the resolution forming and establishing Community Facilities District No. 13M (Otay Ranch Village Two), and authorizing submittal of levy of special taxes within the CFD to the qualified electors thereof. BOARDS/COMMISSION RECOMMENDATION Not applicable DISCUSSION On January 13, 1998, Council adopted the "City of Chula Vista Statement of Goals and Policies regarding the establishment of Community Facilities Districts" (the "Goals and Policies"). The approval of this document ratified the use of CFDs as a public financing mechanism for (1) the construction and/or acquisition of public infrastructure, and (2) the financing of authorized public services. Taxes levied by maintenance districts, such as CFD No. 13M, are currently excluded from the 2% maximum tax criterion set forth in the Goals and Policies. On April 28, 1998, Council, acting under its Charter authority, enacted the "Chula Vista Community Facilities District Ordinance" (the "Ordinance"). The Ordinance adopted the Mello-Roos Act with modifications to accomplish the following: 1) incorporate all maintenance activities authorized by the "Landscaping & Lighting Act of 1972" ("1972 Act"), 2) include certain maintenance activities not listed in the "Mello-Roos Act" or the "1972 Act", and 3) establish an operating reserve fund for open space districts. CFD 13M will provide the necessary funding for the operation and maintenance of public landscaping and storm water quality, walls, fencing, trails, pedestrian bridges, and lighting improvements serving Otay Ranch Village Two by levying an annual "special tax", which is collected from the property owners within CFD 13M in conjunction with the property taxes. There is no direct cost to the City. All expenses related to the district administration, including levying and collecting the special taxes, are also funded from such special taxes. The proposed CFD No. 13M is consistent with the above-mentioned Ordinance and the Goals and Policies. In addition, the staff and developer have met to discuss, review and clarify the intent of the Goals and Policies and Ordinance, the proposed special tax rates and the methodology for the apportionment of the special taxes. Any matters raised by the developers have been discussed and solutions, satisfactory to all parties, were incorporated in the "Rate and Method of Apportionment" (the "RMA") presented at the November 21, 2006, Council meeting. 6-2 1/9107, Item~ Page 3 of6 During its November 21,2006 meeting, the City Council approved Resolution No. 2006- 351, which ordered the preparation of a Community Facilities District Report ("Report") See Exhibit "A". The Report includes the following information in greater detail: Area of Benefit The proposed boundaries of CFD No. 13M encompass parcels located within Village Two, an Urban Village of approximately eight-hundred and, eleven (810.9) acres located south of Olympic Parkway between future Heritage Road and La Media Road, and north of Wolf Canyon (see Exhibit "B", Otay Ranch Village Two Vicinity Map). Otay Project, LP., Otay Ranch Investments, LP, Rancho Mesa, LP, the City of San Diego (for their regional water line), and seventeen other entities own the property within the proposed district. Otay Ranch Village Two is proposed to contain approximately 1,310 single- family detached homes and 1,476 multi-family units (365.60 residential acres), industrial areas (94.70 acres) and a commercial area (12.50 acres), a public school (10.30 acres), three neighborhood parks (15.40 acres), one community park (44.60 acres), and several Community Purpose Facility ("CPF") properties (6.30 acres). The Otay Landfill area located to the southwest of the village will be excluded from the CFD. Staff has reviewed the recorded boundary map and has found it acceptable and ready for approval by Council. A reduced copy of the map is presented in the Report. Description of the hnprovements to be Maintained The proposed CFD No. 13M will fund the operation and maintenance of the public landscaping, storm water treatment, walls and fencing, trails, pedestrian bridges, and lighting improvements within Otay Ranch Village Two. The list of the improvements is presented in the report. Cost Estimate The estimated annual budget for CFD No. 13M, presented on November 21, 2006, is approximately $3,305,251. This budget includes a total of $2,963,294 for landscape, storm water quality, walls and fencing, trails, pedestrian bridges, and lighting maintenance, $41,480 for CFD administration (preparing reports, levying and collecting taxes, public assistance, etc.) by the Engineering Division or their designee, and an additional $300,477 to fund an operating reserve for maintenance. Staff (Public Works/Operations and Engineering) and MuniFinancial have reviewed and approved the proposed budget. The detailed budget is included in the Report. Proposed Special Tax CFD 13M has five proposed categories of taxation, as follows: 1. Residential Developed Parcels (Single Family and Multi-Family Residences) are taxed based on the square footage ofthe structure. 2. Industrial and Commercial Parcels are taxed on the acreage of the parcel. 3. The Final Mapped properties, which include all single-family residential parcels and all industrial and commercial parcels, for which a building permit has not been issued, are taxed on acreage of the parcel. 4. Vacant land (Other Taxable property) is taxed on acreage of the parcel. 6-3 1/9/07, Item~ Page 4 of6 5. The Exempt Category includes all publicly owned parcels, Homeowner's Association parcels, and certain CPF property owned by non-profit organizations. Developed Parcels are those parcels for which a building permit has been issued. The proposed maximum special tax rate in the RMA on all Developed Parcels was determined by dividing the estimated annual budget at b'uild out (plus an operating reserve allocation of 10% of the annual budget) by the total estimated development at build out. For residential property, residential building square footage was used and for non-residential property, industrial and commercial estimated acreage was used. The proposed maximum special tax rate in the RMA on vacant land has been determined by dividing the estimated annual budget at build out (plus a reserve allocation of 10% of the annual budget) by the estimated net lot acreage within the district. Collection of Taxes At the beginning of each fiscal year the City shall determine the amount of the Special Tax Liability (budget plus reserve) of the CFD. Then, the special taxes will first be levied on the Residential and Non-Residential Developed Parcels. If this pool of funds is not enough to fund the Special Tax Requirement, as may be the case in the early years of development, the district will levy the special tax on the vacant land starting with Final Mapped Property. The buffer of having the vacant land covering any portion of the Special Tax Requirement not funded from special taxes levied on Residential and Non- Residential Developed Parcels will disappear once the area has been fully developed. If the Special Tax Requirement for any fiscal year is less than the maximum special tax authorized to be levied on the Developed Parcels, the actual rate of the special taxes to be levied in that specific year will be reduced accordingly. Following is a brief discussion of some key issues regarding the "Rate and Method of Apportionment (RMA) of Special Taxes": The maximum special tax rates shall be adjusted each year for inflation using a factor equal to the greater of the annual percentage increase, if any, in the San Diego Consumer Price Index (CPI-D) or 4%. The Ordinance requires that the developer maintain the landscape improvements for the minimum period of one year following their completion. During this period the district will collect the special taxes with the purpose of building up a six month operating reserve. The RMA provides that the annual budget for any year may include an amount deemed necessary to maintain an adequate level of this operating reserve fund. The maximum special tax rates are based on the best estimate by the developer of the building square footage of residential development and the acreage of non-residential (industrial and commercial) development within CFD 13M (reduced by 5%). This reduction in estimated total square footage of residential development and in estimated acreage of non-residential development has the net result of raising the maximum special 6-4 1/9/07, Item~ Page 5 of6 tax that can be levied on future residential parcels and on future non-residential (industrial and commercial) parcels to avoid a possible shortfall in special tax revenue in the event that the actual square footage of residential development or the actual acreage of non-residential (industrial and commercial) development is less than the projected square footage or acreage on which the computation of the special tax rates has been based. If the actual square footage or acreage of development meets or exceeds the proj ections on which the special tax rates were based, the actUal special tax rate necessary to be levied annually to fund the Special Tax Liability may be less than the authorized maximum special tax. The annual budget used to calculate the special tax rates are only the "best estimates" of the cost of maintenance at buildout. There is always a risk that actual expenses in future years may be higher than the total maximum collectable special taxes. This may result in reduced levels of maintenance of landscaping, unless the property owners approve an increase in the special tax rates (2/3 voter approval is required), which is considered unlikely. Staff believes, however, that the proposed maximum special tax rates contain enough of a cushion in the operating reserve, the inflation adjustment, and the assumed reduction of total square footage of residential development and total acreage of non- residential (industrial and commercial) development to minimize the risk of future special tax revenue shortfalls. Proposed Maximum Annual Special Taxes The proposed maximum annual special tax rates for fiscal year 2006/07 for a typical dwelling unit within CFD 13M are as follows: Unit T e with Avera e S uare Foota e Single-Family Detached (Average Product Proposed 2,836 S uare Feet) Multi-Family Attached (Average Product Proposed 1,416 S ltare Feet) Vacant Land Otay Ranch Village Two $1,248.26 er unit $623.32 er unit $7,358.74 per acre Resolution There is one resolution on today's agenda, which, if adopted, will accomplish the following: The RESOLUTION OF FORMATION is the formal action of the City Council forming and establishing CFD No. 13M and authorizes the electors to vote on the special taxes. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. 6-5 1/9/07, 1tem~ Page 60f6 FISCAL IMPACT All costs off ormation of the district are being borne by the developers and the on-going administration will be funded entirely by the district. The City will recover the full cost of stafftime expended in district formation and administration activities in perpetuity. EXHIBITS: A. Community Facilities District Report B. Otay Ranch Village Two Vicinity Map Prepared by: Boushra Salem, Senior Civil Engineer, Engineering Department 6-6 r"EX~~8ITj A CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRJCT NO. 13M (OTAY RANCH VILLAGE Two) COMMUNITY FACILITIES DISTRICT REPORT ~{f?- ~ ~~................... ........ '........ --:;.,.. ""- <- ---- CllY Of CHU<lA VISTA Submitted: January 9,2007 MuniFinancial Corporat' Office 27368 Via Industria Suite 110 T emecula, CA 92590 Tel: (951) 587-3500 Tel: (800) 755-MUNI (6864) Fax: (951) 587-3510 Office ucations Anaheim, CA Lancaster, CA Los Angeles Regional Office Seattle, W A Oakland, CA Phoenix, AZ Sacramento, CA San Diego, CA www.mum.com 6-7 CITY OF CHULA VISTA CITY COUNCIL " CHERYL COX, MAYOR STEVE CASTANEDA, COUNCILMEMBER JOHN MCCANN, COUNCILMEMBER RUDY RAMIREZ, COUNCILMEMBER JERRY R. RINDONE, COUNCILMEMBER INTERIM CITY MANAGER JIM THOMPSON 6-8 COMMUNITY FACILITIES REPORT CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 2006-1 TABLE OF CONTENTS PAGE INTRODUCTION...................................................................................... 1 DESCRIPTION OF SERVICES ....................................................................2 Services 2 Substitution of Facilities 2 BOUNDARIES OF COMMUNITY FACILITIES DISTRICT ...................................3 COST ESTIMATES..................................................................................4 RATE AND METHOD OF ApPORTIONMENT OF SPECIAL TAX ........................5 GENERAL TERMS AND CONDITIONS .........................................................6 Services 6 CONCLUSION ................................ ..... .......... ....................... ....................7 ApPENDIX A: RATE AND METHOD OF ApPORTIONMENT OF SPECIAL TAX A-1 ApPENDIX B: BOUNDARIES OF THE CFD AND MAP ............................... B-1 Boundaries of CFD B-1 Boundary Map B-1 Site Location B-1 ApPENDIX C: COST ESTIMATES .......................................................... C-1 Landscaping and Lighting Maintenance C-1 Storm Water Quality Maintenance C-7 Total Annual Budget C-7 6-9 City of Chula Vista Communi!] Facilities District No. 13M (Otay Ranch ViUaJ(' Two) INTRODUCTION WHEREAS, the City Council of the City of Chula Vista (hereinafter referred to as the "Agency" or "legislative body of the local Agency''), in the State of California, did, pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, being Chapter 2.5 of Part 1, of Division 2, of Title 5 of the Government Code of the State of California ("Act"), and specifically Section 53321.5 thereof 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 ("Ordinance") (the Act and Ordinance may be referred to collectively as the "Community Facilities District Law"), expressly ordered by adoption of Resolution No. 2006-351 the filing of a written Community Facilities District Report ("Report") with the Agency for a proposed Community Facilities District, which shall be referred to as Community Facilities District No. 13M (Otay Ranch Village Two), (hereinafter referred to as "CFD No. 13M"); and WHEREAS, the Report generally contains the following: a. a description of the Services by type which are required to adequately meet the needs of CFD No. 13M; b. an estimate of the cost of providing the Services, including incidental expenses and all other related costs including but not limited to the detennination of the amount of any special taxes, collection of any special taxes, or costs otherwise incurred in order to carry out the authorized purposes of the Agency with respect to CFD No. 13M and any other expenses incidental to the maintenance and inspection of the authorized work to be paid through the proposed special taxes; c. the rate and method of apportionment of the special tax in sufficient detail to allow each property owner within the proposed CFD No. 13M to estimate the maximum annual amount of payment. For particulars, reference is made to the Resolution of Intention (Resolution No. 2006-350) and the Resolution Ordering the Preparation of the Community Facilities District Report (Resolution No. 2006-351) previously approved. NOW THEREFORE, MuniFinancial, the appointed responsible firm directed to prepare the Report, pursuant to the provisions of the Code, does hereby submit the following: II MuniFinancial Page 1 6-10 City of Chula Vista Communiry Facilities District No. 13lvI (Otay &neb Villa;!" Two) DESCRIPTION OF SERVICES SERVICES The public services described below are proposed to be maintained by Community Facilities Disrtict No. 13M: The maintenance of (a) landscaping, including, but not jimited to, parkways, medians and slopes; (b) facilities that are directly related to storm water quality control; (c) walls and fencing; (d) trails; (e) pedesrtian bridges, including, but not limited to, graffiti removal; and (f) public lighting facilities, including, but not limited to, pedestrian lighting and decorative or ornamental public lighting (collectively the "Improvements"). Such maintenance shall include, but not be limited to, the provision of all labor, material, administration, personnel, equipment and utilities necessary to maintain such Improvements. The landscape maintenance, lighting maintenance, and storm drain maintenance allow for the collection of reserve fund and administration costs. For a detailed description of the improvements and their estimated locations and costs, please refer to "Appendix C". SUBSTITUTION OF FACILITIES The description of the Facilities and Services, as set forth above, is general in its nature. The fInal nature and location of the Facilities and Services will be determined upon the preparation of fInal plans and specifIcations. The final plans may show substitutes in lieu of, or modifIcation to, the proposed Facilities and Services in order to provide the public facilities necessitated by development occurring in the CFD, and any such substitution shall not be a change or modification in the proceedings as long as such substitute facilities and services serve a function or provide a service substantially similar to that function served or the service provided by the Facilities and Service described above. II MuniRnancial Page 2 6-11 City of Chu/a Vist. Communiry Faaiities District fllo. 13lv! (Otay &nch Vi//a~, T lVO) BOUNDARIES OF COMMUNITY FACILITIES DISTRICT The boundaries of CFD No. 13M coincide with previously established parcels as shown on the latest County Assessor maps or approved parcel maps and include ill properties on which special taxes may be levied to pay for the costs of services. The boundaries of CFD No. 13M are described in "Appendix B", reduced scale maps entitled "Proposed Boundaries of Community Facilities District No. 13M (Otay Ranch Village Two)" which are attached hereto and incorporated herein. A full-scale map is on file 'With the Clerk of the City of Chula Vista and was recorded on December 4, 2006, 'With the County Recorder, County of San Diego in Book 40 page 94 in the Book of Maps of Assessment and Community Facilities Districts, Document Number 2006-0858546. III MuniRnancial Page 3 6-12 City of Chula Vista Community Facilities Distn.ct No. 131vI (Otrry Ranch Vz]laJ!.e Two) COST ESTIMATES The establishment of CFD No. 13M was required to fund the perpetual operation and maintenance of public landscaping, storm water quality, walls, fencing, trails, pedestrian bridges, and lighting improvements associated with Otay Ranch Village Two. The initial budget is estimated to be approximately $3,305,251. : For the description, estimated location, and more detailed cost estimate of the improvements, please refer to "Appendix C". mMuniFinancial Page 4 6-13 Ciry of Ch.1a Vista Community Facilities Distn.ct No. 13M (Otar &mch Villa!!! Two) RATE AND METHOD OF ApPORTIONMENT OF SPECIAL TAX The Resolution ofIntention (Resolution No. 2006-350) generally sets forth the rates and methods of apportionment of the special tax, which allows each property owper within the proposed CFD to estimate the annual amount that would be required for payment if a special tax were levied. For particulars of the rates and methods of apportionment, see "Appendix A", Rate and Method of Apportionment of Special Tax. BMuniFinancial Page 5 6-14 City if Chulo Vista Community Facilities District rIo_ 13M rota-; Ranch Vi/Ioy" Two) GENERAL TERMS AND CONDITIONS SERVICES The description of the Services, as set forth herein, is general.in nature. The final nature and location of the facilities that will be maintained will be determiDed upon the preparation of final plans and specifications or the approval of services. iii MuniRnancial Page 6 6-15 Ci~, of Chu/a Vista CommunitJ Facilities District No. 13M (Ota)' &nch Vi//aJ(' T IVO) CONCLUSION Based on information provided by, and discussions with, the City and the property owners, the Services and Facilities listed in this Report are those that are necessary to meet increased demands placed on the City as a result of development occurring within th~ boundaries of the City of Chula Vista. Further, it is my opinion that the special tax rates and methods of apportionment as set forth in "Appendix A" are equitable and are not discriminatory or arbitrary and permit a purchaser of property subject to the special tax a fair means of determining his or her obligation. MuniFinancial By: ( Chris Fisher, Principal Consultant ElMuniRnar.cial Page 7 6-16 City of Chula Vista Community Facilities District No. 13M (Otay Ranch Villay.' Two) ApPENDlxA: RATE AND METHOD OF ApPORTIONMENT OF SPECIAL TAX CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO.1 3M (OTAY RANCH VILLAGE TWO) RATE AND METHOD OFAPPORTIONMENT RMuniFinancial Page A -0 6-17 CommuniryFaciiities District No. 13M (Otcry Ronch Village Two) City ofChula Vista EXHIBIT A: RATE AND METHOD OF ApPORTIONMENT CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO.1 3M (OTAY RANCH VILLAC3ETWOj A Special Tax of Community Facilities District No. 13M (Otay Ranch Village Two) of the City of Chula Vista ("CFD") shall be levied on all Assessor's Parcels of Taxable Property within the CFD and collected each Fiscal Year commencing in Fiscal Year 2007-2008 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 in the CPD, 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. DEFlNITIDNS 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 ofTicle 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 formation and administration of the CFD; the costs of collecting instaDments of the Special Taxes; and any other costs required to form or administer the CFD as determined by the City. "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 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. II MuniRnancial Page A-l 6-18 Communi!) F acilitie.r Di.rtrial'lo. 13M (Ota.) Ranch Village Two) City of Chula Vtst. "CFD" means Community Facilities District No. 13M (Otay Ranch Village Two) 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, as defined in the City of Chula Vista Ordinance No. 2883. "Council" means the City Council of the Gty 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 is issued prior to the March 1 st preceding the Fiscal Year in which the Special Tax is being levied. "Final Map Property" means any residential 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. "Land Use Class" means any of the classes listed in Table 1 or Table 2. "Landscape Maintenance" means the labor, material, administration, personnel, equipment and utilities necessary to maintain authorized landscaped improvements, walls and fencing, trails, and pedestrian bridges within the public right-of-ways, parkways, slopes, wetlands and other public easements/improvements within or outside the CFD. "Landscape Maintenance Requirement" means, for any Fiscal Year in which Special Taxes are levied, the amount equal to the budgeted costs for Landscape Maintenance applicable to the CFD for such Fiscal Year. "Lighting Maintenance" means the labor, material, administration, personnel, equipment and utilities necessary to maintain authorized lighting improvements including, but not limited to, pedestrian lighting and decorative or ornamental street lights within the public eMuniRnancial Page A-2 6-19 Community Fad5ties District No. 13M (Ot'!]fulnch Vilhg' Two) City 0/ Chuh Vista right-of-ways, parkways, slopes, wetlands and other public easements/improvements within or outside the CFD. The lighting improvements may include but are not limited to the cost of providing electrical energy and servicing of lighting fixtures, poles, meters, conduits, electrical cable and associated appurtenant facilities including repair, removal, or replacement. "Lighting Maintenance Requirement" means, for any Fisc0. Year in which Special Taxes are levied, the amount equal to the budgeted costs for Lighting Maintenance applicable to the CFD for such Fiscal Year. "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 for the CFD for each Fiscal Year to pay for Landscape Maintenance, Lighting Maintenance, Storm Water Quality Maintenance and Administrative Expenses. "Operating Fund Requirement" means, for any Fiscal Year, the sum of the applicable Landscape Maintenance Requirement, the applicable Lighting Maintenance Requirement, and the applicable Storm Water Quality Maintenance Requirement. "Other Taxable Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Final Map Property, or Taxable Property Owners Association Property. "Property Owner Association Property" means any property within the boundaries of the CFD that is owned by, or irrevocably dedicated as indicated in an instrument recorded with the County Recorder to, a property owner association, including any master or sub- association. "Proportionately" means in a manner such that the ratio of the actual Special Tax levied to the Maximum Special Tax is equal for all Assessor's Parcels within each Land Use Class. For Developed Property, it means that the ratio of the actual Special Tax levied to the Maximum Special Tax is equal for all Assessor's Parcels of Developed Property. For Final Map Property, it means that the ratio of the actual Special Tax levied to the Maximum Special Tax is equal for all Assessor's Parcels of Final Map Property. For Undeveloped Property, it means that the ratio of the actual Special Tax levied to the Maximum Special Tax is equal for all Assessor's Parcels of Undeveloped Property. "Public Property" means any property within the boundaries of the CFD that has provided proof to the City prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied, that (a) is owned by a public agency, (b) has been irrevocably mMuniRnanciai Page A.] 6-20 Community FaciEties District No. 13M (Otay Ranch l/iilage T IVO) City of Chula Virta 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 or irrevocably dedicated to a public agency. For purposes of this definition, a public agency includes the federal government, the State of California, the City or any other public entity. "Reserve Fund" means a fund that shall be maintained for th7 CFD for each Fiscal Year to provide necessary cash flow for the first six months of each 'Fiscal Year, reserve 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 Requirement" means an amount equal to up to 100% of the Operating Fund Requirement for any Fiscal Year. "Residential Dwelling Unit" means each separate residential dwelling unit which comprises an independent facility capable of human habitation separate from adjacent residential units, including but not limited to, single-family homes, duplexes, triplexes, town homes, condominiums, and apartment units. "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 Units. "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 the CFD to fund the Special Tax Requirement. "Special Tax Requirement" means that amount required in any Fiscal Year for the CFD to: (a) (i) pay the Landscape Maintenance Requirement; (il) pay the Lighting Maintenance Requirement (ill) pay the Storm Water Quality Maintenance Requirement; (iv) pay reasonable Administrative Expenses; (v) pay any amounts required to establish or replenish the Reserve Fund to the Reserve Fund Requirement; (vi) pay for reasonably anticipated delioquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year; less (b) a credit for funds available to reduce the annual Special Tax levy, including the excess, if any, in the Reserve Fund above the Reserve Fund Requirement. "Square Foot" means the building square footage of assessable internal living space as shown on an Assessor's Parcel's building permit of Residential Property, excluding garages or other structures not used as living space. "State" means the State of California. "Storm Water Quality Maintenance" means the maintenance of authorized detention basins, storm drains, catch basin inserts, hydrodynamic devices, infiltration basins, and all other facilities that are directly related to storm water quality control within or outside the CFD.e "Storm Water Quality Maintenance Requirement" means for any Fiscal Year an amount equal to the budgeted costs for Storm Water Quality Maintenance applicable to the CFD for BMuniFinancial Page A-4 6-21 Community Fadlities District No. 13M (Otay Ranch 'Vi/lage Two) City of Cbula Vista the current Fiscal Year in which Special Taxes are levied. "Taxable Property" means all of the Assessor's Parcels within the boundaries of the CFD that are not exempt from the Special Tax pursuant to law or as defined below under "Tax- Exempt Property. "Tax-Exempt Property" means an Assessor's Parcel not sul';ject to the Special Tax. Tax- Exempt Property includes: (~ Public Property, or (ii) Property Owner Association Property excluding Taxable Property Owner Association Property, or (iii) Assessor's Parcels defined as Community Purpose Facility Property that are owned by a non-profit organization and have provided proof to the City prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied of the organization's non-profit status, or (v) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement. "Taxable Property Owner Association Property" means all Association Property which is not exempt from the Special Tax pursuant to Section E below. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property. B. ASSIGNMENT TD LAND USE CATEGDRIES Each Fiscal Year using the definitions in Section A, allTaxable Property within the CFD shall be classified as Developed Property, Final Map Property or Undeveloped Property, and shall be subject to the levy of 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. Undeveloped Property shall be further assigned to a Land Use Class as specified in Table 2. Assessor's Parcels of CPF Property not classified as exempt in accordance with Section E below shall be taxed as Non-Residential Property when such Assessor's Parcel is classified as Developed Property. If the Assessor's Parcel is Undeveloped it shall be classified as Other Taxable Property. II MuniFinancial Page A-5 6-22 Community Facilities District No. 13M (Otay Ranch Village Two) City of Chula Vista C. MAXIMUM SPECIAL TAX RATE 1. DEVELOPED PROPERTY TABLE 1 MAXIMUM SPE:CIAL TAX FOR DE:VE:LOPE:D PROPE:RTY COMMUNITY FACILITIE:S DISTRICT No.1 3M (OTAY RANCH VILLAGE: TWO) FISCAL Ye:AR 2006-2007 Land Storm Maximum Use Description Landscape Water Quality Special Tax Class & Lighting Maintenance Maintenance 1 Single Family and $0.424 per Square $0.016 per $0.440 per Multi Family Foot Square Foot Square Foot Residential Propertv 2 Non-Residential $7,079.36 per $279.38 per $7,358.7 4 per Property Acre Acre Acre Multiple Land Use Classes In some instances an Assessor's Parcel of Developed Property may be classified in more than one Land Use Class; e.g., live/work lofts or similar mixed use developments. The Maximum Special Tax that may be levied on such an Assessor's Parcel 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. II MuniFinancial Page A-6 6-23 Community FaciEti" District No. 13M (Otay &nch Villag' Two) City of Chula Virta 2. UNDEVELOPED PROPERTY TABLE 2 MAXIMUM SPECIAL TAX FOR UNOEVELOPED PROPERTY COMMUNITY FACILITIES DISTRICT NO.1 3M (OTAY RANCH VILLAGE TwO) FISCAL YEAR 2006-2007 Land Landscape Storm Maximum Use Description & Lighting Water Quality Special Tax Class Maintenance Maintenance 3 Final Map Property $7,079.36 per $279.38 per Acre $7,358.74 per Acre Acre 4 Other Taxable $7,079.36 per $279.38 per Acre $7,358.74 per Prooertv Acre Acre 5 Taxable Property $7,079.36 per $279.38 per Acre $7,358.74 per Owner Association Acre Acre Pronertv 3. 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 the CFD shall be increased each Fiscal Year beginning in Fiscal Year 2007 -2008 and thereafter by a factor equal to the greater of, the annual percentage increase, if any, in the San Diego Metropolitan Area All Urban Consumer Price Index (All Items) as reported by the State of California Department of Finance, or 4%. I!IMuniFinancial Page A.7 6-24 Community Facilities District No. 13M (Ot'!!' &nch Vilhge T IVO) City of Chuh Virta D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2007-2008, and for each following Fiscal Year, the Council shall levy the CFD 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 Requir=ent. The Special Tax shall be levied each Fiscal Year as follows: First: The Special Ta.." shall be levied proportionately on each Assessor's Parcel of Developed Property up to 100% of the applicable Maximum Special Tax; Second: If additional monies are needed to satisfy the Special Tax Requir=ent after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Final Map Property at up to 100% of the Maximum Special Tax for Final Map Property; Third: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Other Taxable Property at up to 100% of the Maximum Special Tax for Other Taxable Property; Fourth: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, the Special Tax shall be levied proportionately on each Assessor's Parcel of Taxable Property Owner Association Property at up to 100% of the applicable Maximum Special Tax for Taxable Property Owner Association Property. Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor's Parcel of Residential Property for which an occupancy pennit for private residential use has been issued be increased by more than ten percent annually up to the Maximum Special Tax as a consequence of delinquency or default in the payment of the Special Tax levied on any other Assessor's Parcel within the CFD. E. EXEMPTIONS The CFD Administrator shall classify as Tax-Exempt Property (i) Assessor's Parcels defined as Public Property, (ii) Assessor's Parcels defined as Community Purpose Facility Property that are owned by a non-profit organization which have provided proof to the City prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied of the organization's non-profit status, and (ill) Assessor's Parcels encumbered with public or utility easements making impractical their utilization for other than the purposes set forth in the easement. The CFD Administrator shall classify as Tax-Exempt Property those Assessor's Parcels defined as Property Owner's Association Property provided that no such classification would reduce the sum of all Taxable Property to less than 449.20 Acres. Assessor's Parcels defined as Property Owner Association Property that cannot be classified as Tax-Exempt Property will be classified as Taxable Property Owner Association Property and shall be taxed as part of the fourth step in Section D. ElMuniFinancial Page A-S 6-25 Community Facziities District 1'10. 131Yi (Ot~ Ranch Village T lVO) City of Chula Vista The CFD Administrator will assign tax-exempt status in the chronological order in which property becomes Public Property, Community Purpose Facility Property or Tax-Exempt Property Owner Association Property. However, should an Assessor's Parcel no longer be classified as Public Property, Community Purpose Facility Property or Tax-Exempt Property Owner Association Property as a result of a change of ownership, change of use or both, its tax-exempt status will be autoIrultically revoked. Taxable Property Owner Association Property that is not exempt from the Special Tax under this section shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the fourth step in Section D above, at up to 100% of the applicable Maximum Special Tax for Taxable Property Owner Association Property. F. 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 CPD 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 CPD, 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 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 the CFD or as otherwise determined appropriate by the CFD Administrator. H. TERM OF SPECIAL TAX Taxable Property in the CFD shall remain subject to the Special Tax in perpetuity or until the City Council takes appropriate actions to terminate the Special Tax pursuant to the Act. ElMuniRnancial Page A.9 6-26 City of Chula Virta Communiry Facilities District 1\7"0. 131\1. (Otcry Ranch VillaJic Two) ApPENDIX B: BOUNDARIES OF THE CFD AND MAP BOUNDARIES OF CFD The exterior boundaries of CFD No. 13M are shown on that certain map now on file in the Office of the City Clerk entitled "Proposed Boundaries of Community Facilities District No. 13M (Otay Ranch Village Two)". This map indicates by a boundary line the extent of the territory included in proposed CFD No. 13M and shall govern for all details as to the extent of CFD No. 13M. The parcels of real property within CFD No. 13M are described more particularly on the Assessor Parcel Maps and recorded Parcel Maps that are on file in the office of the San Diego County Assessor and are incorporated into this Report by reference. BOUNDARY MAP A reduced copy of the Boundary Map follows. The original of such map is on file in the Office of the City Clerk and in the records of the County Recorder, County of San Diego, and State of California. SITE LOCATION The CFD is located in the southern portion of San Diego County, within the City of Chula Vista, south of Olympic Parkway (poggi Canyon), west of La Media Road, and north of Wolf Canyon. The area of the CFD site consists of approximately eight-hundred and eleven acres (810.9 acres). IIMuniRnancial. Page B-1 6-27 City of Chuh Vista Communi!} Facilities District No. 13M (Ot"l'Ranch VilhJ!.' Two) BOUNDARY MAP III MuniFinancial Page B . 2 6-28 ~ .. o ~ 6 ik. ~ ~~ ~ ~U ~~ ~ ~ ~~ Ig! li~~ ; !i~;~, a~ i 6 1~~ll. ~~ i ~~ illlii i~U ~I ! I~~ili. ~ Ilil !I~ _d.u h.~ II. ~ f- W w :I: '" :; '" ~ IL.g~ of-o ffi2~ _a: 0 II: f- W o(l!l:! <( (I) <!l ~.~ ClCi::5 ;;~~ 3(1)=" ~.~ o !!d > ~~. aJ t:: ~ ~~o @i3~ 5B~ We( a:: U OIL. ll.>~ Of-f- a:-o ll.Z_ ::> :; ::;; o u \1\\\ W\\~ \\\\\i ~l\\\ i !di h~ Ui~ Ui ;~~h i!i ;!I~~ d; il~i9 ~~&. ~hd ~!~ iP~i '!Ii hll~ Ilh Iml M~ "- 0< " ~ z o ;; 6-29 ! ! I ~ ~ ,1 ~ 118~ " 0 ~.~~. ~h=a ~ !~g~ i~~~~i g~~~h - ~~f~~~ .U.>~ '. ~~~d! :1:<."': ~ ~5ii~i ghh~ ~I!'~~l E~ t5 tU- . 8 ~~ ~ ] I ~ ~ ~ ~ ~i II 'D ~~ ~ ~ ~ ~ City of Chu/a Vista Communiry Facilities Distnct No. 13M (Otay Ranch Vil/a~, Two) ApPENDIX C COST ESTIMATES LANDSCAPING AN'D LIGHTING MAINTENANCE Area Landscaped Co.. To,,", or Quantitv p" Un. Duration Annual Cost Heritage Road (MIln Stl'Ht to Olympic Paritway) Planted Area. Parkways & Landscape Easement Areas (located wast of Heritage Road, indudlng low raisedplanters,culltintoretainingwall) . Code 1 (Shrubs & Groundcovers) 345,800 0.490 Sq,FL Yc , 1661,442 . Code 2 (Turf) 1,510 0.490 Sq.FL Yc , 740 Retaining Wall (planted & irrigated, 1,272l1neartt) 10,600 0.375 Sq,FL y, , 3,975 Grafflti Abatement, Retaining Wall (planted & irrigated) 10,600 0.700 Sq.FL Yc , 7,420 Planted Area - Medians . Cooe 1 (Shrubs & Groundcovers) 138,331 , 0.560 Sq.FL y, , n,4B6 Street Trees 585 , 62.22 T~ y, , 36,399 SlreetTrees, addltionalmaintenanca(roots) 585 , 15.56 T~ Yc 9100 Total 304,541 Santa Carolina Road (Santa VIctoria West to Santi Christina) PlantedArea-ParXways o Code 2 (Turf) 14,383 0.490 Sq.Fl Yc 7,048 Planted Area-Medians - Code 1 (Shrubs & Groundco~ers) 36 , 0.560 Sq.Fl y, , 2C Pedestrian Lights a , 202.22 e,,,, Yc , 1,618 Street Trees 64 , 62.22 T~ y, , 3,982 Street Trees, additional maintenance (roots) 64 , 15.56 Tc" Yc , 996 Total , 13,663 Santa Diana Road (Santa Christina to Santa Victoria East) Planted Area - Parkways - Code 1 (Shrubs & Groundco~ers) 322 0.490 sq.Ft y, , 158 - Code 2 (Turf) 33,688 0.490 Sq.Fl y, , 16,507 PtantedArea-Medlans -Code 1 (Shrubs & Groundcovers) 30 0.560 Sq.Fl y, , 17 Pedestrian Lights 19 202.22 e,'" Yc , 3,842 Street Trees 141 62.22 Tree y, , a,m Street Trees, additional maintenance (roots) 141 15.56 T~, y, , 2,193 To,,", , 31.490 Santa Venetla Road (La Meaia Road to Olympic Parkway) Planted Area - Parkways (including Santa V1clorla's north parKway, between Santa Venetia and the secondary high school entrance). -Code 2 (Turf) 25,685 , 0.490 Sq.Ft Yc , 12,566 Planted Area - Additional landscape easement areas (around and under Olympic Parkway pedestrian a-ossing, between back of sidewalk and high school perimeter fence, induding extension to high schoors secondary entrance on Santa V1ctoria). - Code 1 (Shrubs &. Groundcovers) 26,863 , 0.490 Sq.Fl Yc , 14,143 Pedestrian Lights a , 202.22 Each Yc , 1,213 Street Trees 75 , 62.22 T~, y, , 4,867 Street Trees, additional maintenance (roots) 75 , 15.56 T~, y, , 1187 Total , 33.775 Santa VIctoria Road (Olympic Parkway to Heritage Road) Planted Area - Parkways and All Landscape Easement Areas -Code 1 (Shrubs&.Groundcovers) 134,621 0.490 Sq.Ft Yc , 65,964 -Code2(Turf) 1,697 0.490 Sq.Ft y, , 832 Planted Area-Medians - Code 1 (Shrubs & Groundcovers) 4,253 , 0.560 Sq.Fl y, , 2,382 Pedestrian Lights 24 , 202.22 e,,,, Yc , 4,653 Street Trees 210 , 62.22 T~ Yc , 13,068 Street Trees, additional maintenance (roots) 210 , 15.56 T~, y, , 3267 Tot4J , 90,363 II MuniFinancial Page C - 1 6-30 Ciry of Chula Vista Communi!} Facilities DiItrict No. 13M (Clay Ranch Villa!!., Two) Area Landscaped or Quantitv Cost Per Unit Duration Total Annual Cost Santa Victoria Road (Heritage Road to Santa Ven&tla Road) Planted Area - Parkways and landscape Easement Areas on the north side of the street, between the P.3 park and the high school's secondary entrance on Santa Victoria. . Code 1 {Shrubs & Groundcovers) 16,379 0.490 Sq.FI. y, 8,026 . Code 2 (Turf) 95,485 0.490 Sq.Fl y, 46,788 Planted AI1!a - Medians & 80th Traffic Circles (East &West) . Code 1 (Shrubs & Groundcove~) 11,396 , 0.560 Sq:Ft. y, 6,382 . Code 2 (Turf) 7.427 , 0.560 Sq.Fl y, 4,159 Vehicular Accent PaVing . East Traffic Circle 12.326 , 0.160 Sq.Ft. y, 1,972 . WeslTraffic Clrde 12,325 , 0.160 Sq.Ft. Yc 1,972 Pedestrian Lights 39 , 202.22 Each y, 7,887 SlreelTrees 329 , 62.22 T~. Yc 20,470 StreelTrees, additional mainlenance(rools} 329 , 15.56 Tceo y, 5,118 Total 102,773 Ornamental Street Wghb Santa Victoria Road (Heritage Road to Santa Vanella Road) 16 $ 226.00 Street Ught y, , 3,616 Santa Carolina (Santa Victoria Road to Santa Diana Road) 3 $ 226.00 Street Ught y, S 678 Santa Diana Road (Santa Cal"Qlina Road to Santa Victoria Road) S $ 226.00 Street Light Yc , 1,808 Santa Alexia (Santa Victoria Road to Santa Diana Road) 3 $ 226.00 Street Ught y, , .78 Santa Ivy Road (Santa Victoria Road to Santa Diana Road) 3 $ 226.00StreetUght y, , 678 Santa Christina Road (Santa Victoria Road to Santa Diana Road) 3 $ 226.00 StreetUoht Yc I 678 Total , 8,136 State Street (Santa Victoria Road to La Media Road) Planted Area. Parkways . Code 1 (Shrubs & Groundcovers) 24,755 , 0.490 Sq.Fl Yc , 12,130 . Code 2 {Turf} 2,467 , 0.490 Sq.Ft. y, , 1,209 Planted Area - Medians . Code 1 (Shrubs & Groundcovers) 105 0.560 Sq.Ft. Yc , 59 'Code2(Turf) 8,049 0.560 Sq.FI. y, , 4,508 Pedestrian Lights 6 202.22 Each y, , 1,213 SlraetTrees 22 62.22 Tree y, , 1,369 Straet Treas, additional maintenance (roots) 22 15.56 Tree Yc I 342 Total S 20.829 Heritage Road (Santa Victoria Road to La Media Road) VehictllarAccentPaVing . Crosswalks and Commercial Canter intersection 6,819 0.160 SO.Fl y, , 1,091 Total , 1,091 Santa Christina Avenue (Santa Victoria Road to Santa Diana Road) Planted Area-Parkways . Code 2 {Turf) 9,027 , 0.490 Sq.FI. y, , 4,423 Pedestrian Lights 5 , 202.22 E.'" Yc , 1,011 Street Trees 38 , 62.22 Tree y, , 2,364 StraetTrees, additional maintenance (roots) 38 I 15.56 Tree y, , 591 T""" , 8,390 Santa Ivy Avenue (Santa Victoria Road to Santa Diana ROild) Planted Area. Parkways . Code 2 {Turf) 9.027 S 0.490 Sq.Fl y, 4,423 PedestrianUghts 5 , 202.22 Each y, 1,011 StreatTrees 38 I 62.22 T~. y, 2.364 Street Trees, additional maintenance (roots) 35 , 15.56 T~. Yc 591 Total 8,390 Santa Alexia Avenue (Santa Victona Road to Santa Olana Road) Planted Area-ParkWays . Code 2 (Turf) Pedestrian Lights SlreetTrees Street Trees, additional maintenance (roots) 9,027 5 35 38 $ OA90 $ 202.22 $ 62.22 $ 15.56 Sq.Fl E.'" T~. T~. y, y, y, Yc I , , , S 4A23 1,011 2,364 591 8,390 Total II MuniFmancial Page C. 2 6-31 City of Chula Vista Commumry Facilities Distn"ct J\Fo. 13M (Ot"1 Ranch Vi/laX' Two) Area Landscaped Cost Total or Quantity p" Unit Duration Annual Cast Santa LIza Street (Heritage Road to Nbr. R-23) Planted Area-Parkways . Cocie2 (Turf) 7,252 $ 0,490 Sq.Ft. y, $ 3,553 Pedestrian Lighls 11 $ 202.22 E.,," y, $ 2,224 Street Trees eo $ 62.22 T~ y, $ 3,733 StreetTrees,additiooal maintenance (roots) eo $ 15.56 T~ y, "3 T,tal 10.444 La Media Road, wut side {S.mta Vllnetla Road and Olympic Pal1cway) Planted Area - Par'Kways . Code 1 (ShNbs & Groundcovers) 13.200 0.490 Sq.Fl y, 6,468 Planted Area. Medians (50%) . Code 1 (Shrubs & Groundccvers) 13,200 $ 0.560 SqH y, $ 7,392 Median Trees (50%) 7 $ 88.15 T'.. y, $ 617 Median Trees, additional maintenance (rcots) 7 $ 22.04 T~, y, $ 154 Street Trees (west side of La Media) 26 $ 62.22 Tree y, $ 1,742 Street Trees, add~onalmaintenance(roots) " $ 15.56 T~ y, $ 436 Total . 16,809 La MedIa Road, we:st side (Santa Venetla Road and Birch Road) Planted Area . ParKways . Code 1 (Shrubs & Groundcovers) 30,357 $ 0.490 Sq.Ft y, . 14.875 Planted Area. MedJens (50%) . Code 1 (Shrubs & Groundcovers) 5,129 $ Q.56O Sq.FI. y, . 2.8n Median Trees (50%) .., $ 88.15 T~ y, . 573 Median Traes, additional maintenance (roots) 6.' . 22.04 T~ y, $ 143 Street Trees (west side of La Media) 31 , 62.22 T_ y, . 1,929 Street Trees, additional maintenance (roots) 31 . 15.56 T~" y, . .., Total $ 20,874 L.a Media ROlu:l, west side (Birch Road and Santa L.una Road) P\antedArea.Parkways -Code 1 (Shrubs & Groundcovers) 60.239 , 0.490 Sq.Ft y, 29,517 Planted Area_Medians (50%) . Code 1 (Shrubs & Groundcovers) 21,371 . 0.560 Sq.FI. y, 11.968 Median Treas (50%) 34.' , aa.15 T~ y, 3,041 MadianTrefl, additiOl1al mainrenance(rcots) 34.' . 22.04 T~ y, 760 StreatTraes {West side of La Media} 89 , 62.22 T~ y, 5,538 StreatTrees, additional maintenance (rcots) 69 . 15.56 Tee" y, 1."" Total 52.208 Olympic Parkway (between Sunbow Subdivision and Heritage Road) Planted Area . Parkways (south side of Olympic) . Code 1 (Shrubs & Gl'Oundcovers) 73.653 , 0.490 Sq.Ft y, 36,090 Planted Area - Medians (SO%) -Code 1 (Shrubs & Gl'Oundcovars) 17,585 . 0.560 Sq.FI. y, 9,848 Median Trees (50%) 66 , aa.1S Tree y, 7,580 Median Treas, additiOl1al maintenance (rcots) 66 . 22.04 T,.. y, 1,895 StreatTrees {West side of Olympic) 63 $ 82.22 T~, y, 3.920 Street Trees, additional maintenance (roots) 63 . 15.56 T,.. y, 9eo Total 60.313 Olympic Parkway (Heritage Road and La Media Road) Planted Area. ParKways (south side of Olympic) - Code 1 (Shrub~ & Groundcovers) 109,072 $ 0.490 Sq.Ft y, 53,445 Planted Area. Mealans (SO%) . Code 1 (Shrubs & Groundcovers) 23.491 , 0.560 Sq.FI. y, . 13,155 Median Trees (SO%) 54.' , 88.15 T~, y, $ 4,804 Median Trees, additional maintenance (roots) 54.5 , 22.04 T~. y, $ 1,201 Street Trees (west side of Olympic) 69 . "22 T~ y, . 6,475 Street Trees, additional maintenance (roots) 69 . 15.56 T~, y, . 1,369 Total . 79,449 II MuniRnancial Page C-3 6-32 City of Chula Vista Community Facilities District 1'./0. 13M (Otay Ranch Vi!Ia~, Two) Area u"ndscaped C,", Totol or Quantltv ." Unit Duration Annual Cost OpenSpaca Lot #1 Landsc8ce Area - non*sloped irrigated araas -Code2 (Turf) 2,207 0.490 Sq.Fl Yc , 1,081 lands~peArea-jrrigatedslopes . Code 3 596,878 , 0.310 Sq.Ft Yc , 185,032 RelainingWall 360 , 0.375 SQ.Fl Yc , 135 Graffiti Abatement, Retaining Wall 360 , 0.700 Sq.l~l Yc , 252 Post & Rail Fencing 1,748 , 1.560 LL ~L Yc , 2,727 5' High Solid Theme Wall '" , 0.860 U. FL Yc , ", Graffiti Abatement, 6' High Solid Theme Wall 768 , 0.700 Sq.Fl Yc , 536 2' High Salld Theme Wall '" , 0.660 Li. Fl Yc , 39 Graffltf Abatement, 2,' High Solid Theme Wall '" , 0.700 Sq.Fl Yc , 32 View Fence (4'High W.1. overZ' High 8locK} 1,792 , 0.550 U.Fl Yc , 886 View Wall (4' High Glass over 2' High Block) 1,056 , 0.510 U.Ft Yc , 539 S"lNide Concrete Header/Edging '" , 0.23 Li.Fl Yc , 11 Concrete Trail 10,488 , 0.23 Sq.Fl Yc , 2,412 Trail Trees '58 , 41.48 E,'" Yc , 8,595 Trees Maintenance iaOiacent to trail and brow dilchl 34 , 900.00 E~h 5Yc , 8,120 Total , 207,160 Open Space L.ot #2 Landscape Area. irrigated slopes 'Code3 217,685 , 0.310 Sq.Fl Yc , 67,482 . Code 4 (Temporartly Irrigated) 121,157 , Q,310 Sq.Fl Yc , 37,559 Landscape Area - non.irrigated slopes (Code 5) 25.052 , 0.265 Sq.F!. Yc , 6,639 View Fence (4' High W.I. over 2' High Slack) 1,195 , 0.550 LLFl Yc , 658 T_, 160 , 41.48 E'''' Yc , 6,637 Total , 118,976 Open Space Lot #3. MSCP Area (CFD 97-2) MSCP - Landscape Area - non..jrrioate<:i 414.030 SQ.Fl Yc , Total , Open Space LotlJ4 Landscape Area. irrigated slopes . Code 3 2.626 , 0.310 Sq.Fl Yc , 81' . Code 4 (Temporarily Irrigated) 1,155 , 0.310 Sq.F!. Yc , '58 Non-disturbed Landscape Area (Code 5) 3,809 , 0.265 Sq.F\. Yc , 1,009 MSCP . Landscape Area - non.iITigated 140,038 , Sq.FL Yc , Post & Rail Fencing 49 , 1.660 LI. F\. Yc , 76 Trees 45 , 41.48 E,'" Yc 1,867 Total , 4,125 Open Space Lot #5 LandscapeArea.iITigatedslopes 'Code3 1S3,8S3 , 0.310 Sq.Ft Yc , 56,998 'Code 4 (Temporarily Irrigated) 83,283 , 0.310 Sq.Ft Yc , 25,818 LandscapeArea-non.irrigated slopes (CodeS) 25,489 , 0.265 Sq.Ft Yc , 6.748 Post & Rail Fencing 1,787 , 1.S60 Li.FI. Yc , 2,788 Trees "" , 41.48 Each Yc , 8,006 Total , 100,358 Open Space Lot#fo Landscape Area. irrigated slopes . Code 3 10,990 , 0.310 Sq.Fl Yc , 3,407 . Code 4 (Temporari/y IrTigated) 133,166 , 0.310 Sq.Fl Yc , 41,281 Landscape Area. non..jrrigaled slopes (Code 5) 47.671 , 0.265 Sq.Ft Yc , 12,633 Post & Rail Fencing 2.117 , 1.560 Li.FL Yc , 3,303 Trees 122 , 41.48 Each Yc , 5,061 Total , 6S,684 Open Space lot #7 _ MSCP Area (CFD 97-2) LandsC<!oeArea.non-irriQsted sloDes 2.499,787 So.Ft. Yc To,", II MuniFrnancial Page C . 4 6-33 City of Chula Vista Community Facilitie.r District No. 13M (Olay Ranch Villa~, T IV') Area. Landsl;aped C~t Total or QUilntltv p" Unit Duration AnnualCosl: Open Space L.ot #8 LandscapeArea-irrigatedslopes . Code 3 93,1n $ 0.310 Sq.Fl y, $ 28,883 . Code 4 (Temporarily Irrigated) 48,_ $ 0.310 Sq.FI. Yc , 15,189 Landscape Area - non-ilTigaled slopes (Code 5) 141,510 $ 0.265 Sq.Fl y, , 37,500 6' Hign Solid TI'1eme Wall 1,705 $ 0.860 U. Ft Yo $ 1,466 Graffiti Abatement, 6' High Solid Theme Wall 1,705 $ 0,700 Sq.fL Yo , 1,194 6" 'Mae Concrete HeaderlEdging 10 , 0.23 Li. Fl y, , 2 Tcee, 111 $ 41.48 E.", y, $ 4,604 Total $ 88,839 Open Space L.ot #9 LandscapeArea_inigatedslcpes . Code 3 121,466 0.310 Sq.Ft Yo , 37,654 . Code 4 (T empararily Irrigated) 217,522 0.31Q Sq.Ft. Yo , 67,432 Landscape Area. I'ICIl'l-inigated slopes (Code 5) 256,586 0.265 Sq.Ft. Yo $ 67,995 View Fence (4' High w.1. over 2' High BlocK) 2,724 0.550 LL Fl Yo $ 1,498 6" \Nide Concrete Header/Edging 62 0.23 LL Ft Yo $ 14 Trees 264 41.48 Each Yc $ 10,951 To'" . 185,545 Open Space Lol #10 - MSCP A.rea (CFO 97-2) landscaDeArea-nan~rriQated slaDes 112.092 5o.Ft y, $ Totai $ Open Space lot #11 LandscaoeArea-non~rriosted sloDes 26,303 0.265 5Q.Ft Yo $ 6,970 To'" , 6.970 Open Space Lot #12 LandscapaArea.jl'Tigatedslopes -Code3 7,755 . 0.310 Sq.Ft y, 2,404 Trees 8 , 41.48 Each Yo 332 Total 2,736 Open Space lot #13 landscape Area-non-sloped irrigated areas , Code 1 (Shrucs & Groundcovers) .. $ 0.490 Sq.Ft y, $ 24 "Code2(Turf) 1,909 , 0.490 Sq.Ft y, , .35 LandscapeArea.il'Tigatedslopes 'Code3 65,737 . 0.310 Sq.Ft. y, 20,378 Trees 2. $ 41.48 E.", Yo 1.203 T"'~ 22.541 Open Space lot #14 LandscapeArea-non-sioped lnigated areas "Code2(TI.lrf) 1,640 0.490 Sq.Ft. y, , SO. Landscape Area. inigated slopes "Code3 41.697 , 0.310 Sq.Ft y, $ 12,926 6' High Solid Theme Wall 612 $ 0.860 li. Ft Yo , 526 Graffiti Abatement, 6' High Solid Theme Wall 612 $ 0.700 Sq.Fl Yo , .28 View Fence (4' High w.1. over 2' High Block) 270 $ 0.550 li. Ft y, , 149 S" Wide Concrete Header/Edging 13 . 0.23 li.Ft y, , 3 Trees 3. $ 41.4S Each y, $ 1,616 Total $ 16,454 Open Space lot#15 Landscape Area _ irrigated slopes " Code 3 357,016 , 0.310 Sq.Ft y, , 110,675 Trees 204 $ 41.48 E.", y, , 6,462 Total , 119137 Open Space Lot #16 landscape Area-irrigated slopes -Code 3 50,670 , 0.310 Sq.Fl y, , 15,708 View Fence (4' High w.1. over 2' High Block) 3,416 , 0.550 Li.Ft. y, $ 1,880 6" Wide Concrete HeaderlEdging 64 , 0.23 U. Ft y, , 1. Trees 47 $ 41.46 E.'" y, $ 1,950 Total $ 19.556 II MuniRnandal Page C - 5 6-34 City of Chula Vista Commumty Facilities District No. 13M (Olay &nch Vi/lay, Two) Area Landscapecl Cost Total or Quantitv Po, Uo" DuratlGn Annual Cost Open Space Lot #17 landscape Area-non.slaped irrigated areas . Code 1 (Shrubs & Groundcovers) 75 0.490 Sq.Ft. y, $ 37 . Code 2 (Turf) 2.349 0.490 Sq,Fl y, $ 1,151 Landscape Area-irrigated slopes . Code 3 1.427.513 $ 0.310 Sq.Fl y, $ 442,560 Post & Rail Fencing 1,948 $ 1.560 LL Fl y, $ 3,039 6' High SoUd Theme Wall 451 $ 0.860 U.Fl y, $ 366 Graffiti Acatement, 6' High Solid Theme Wall 451 $ 0.700 Sq.Fl y, $ 316 2' High SaUd Theme Wall 45 $ 0.860 Li.Fl y, $ 40 Graffiti Abatement, 2' High Solid Theme Wall 46 $ 0.700 Sq.Ft y, $ 32 View Fence (4' High w.1. over 2' High Slack) 3,836 , 0.550 U. Fl y, $ 2,110 View Wall (4' High Glass over 2' High Slock) 866 , 0.510 Li.Ft, y, $ 453 6" Wide Concrete Header/Edging 66 , 0.23 li.Fl y, $ 15 Concrete Trail 11,688 $ 0.23 Sq.Fl y, , 2,588 Trail Trees 876 $ 41.48 Each Yo , 36,336 Trees Maintenanee (adiaeentto trail and brow ditch) 40 $ SOO.OO E,ct; 5Y, $ 7,200 Total $ 496,365 CFD Open Spaee (No Lot #1 - Adjacent to Wolf Canyon Landscape Area-inigated slopes . Code 3 121,466 $ 0.310 Sq.FL y, $ 37,654 . Code 4 (Temporarily Irrigated) 217,522 $ 0,310 Sq.FL y, , 67,432 Landscape Area - non-imgated slopes (Code 5) 39,Sn $ 0.255 Sq.FI. Yo $ 10,514 View Fence (4' High W,I, over 2' High Block) 1,652 $ 0.550 Li. FL y, $ 909 Trees 108 , 41.48 E,ct; y, $ 4480 Totai $ 120,S8S CFD Open Space (No L.ot #)- Adjacent to Olympic ParKway Landscape Area-inisated slopes . Code 3 1,002,903 $ 0.310 Sq,FL y, $ 310,900 6' High Solid Theme Wall 10 $ 0.860 L.i.Ft. y, $ 9 Graffiti Abatement, 6' High Solid Theme Waif 10 $ 0.700 Sq.Ft. y, , 7 View Fence (4' High W.1. over 2' High Block) 1,257 $ 0_550 U. FL y, , 691 6" Wide Concrete Header/Edging 23 . 0,23 Li.Ft. y, $ 5 Trees 107 , 41.48 E,ct; y, $ 4,438 Total , 316,051 CFD Open Space (No L.ot #) . Adjacent to Neighborhood R.12 LandscapeArea.inigatedslopes . Code 3 41,130 0.310 Sq,Ft. y, 12,750 Trees 7T 41.48 Each y, 3,194 Total 15.S44 CFD Open Space (No Lot #) - Adjacent to Santa Victoria at the Industrial Area L.andscapeArea - inigaledslopes -Code 3 9,590 0.310 Sq.FL y, $ 2,9n Trees 15 41.48 E,ct; y, , 747 Total , 3,720 CFD Open Space (No Lot 11:) _ AdJacent to L.andfill LandscapeArea-inigatedslopes . Code 3 164.630 $ 0.310 SQ.FI. y, 51,035 Total 51,035 CFD Open Space (No Lot Ill) - Non-Dedicated, Heritilge Road Landscape Area-inigated stopes 'Code3,WestofHeritage 33,350 0.310 5q.Ft y, $ 10,339 . Code 3, East of Heritaoe 7060 0.310 Each Yo $ 2,189 Tolal $ 12.527 Pedestrian Brldge (50%) - across Olympic PIlr1cway to Villilge One. Existing Bridge Greffltl, Ralls and Maintenance 50% $ 4,150 BridQe y, 2,075 Total 2.075 Pedestrian Bridge (50%) - across La Media Road to Village SIx. To 6e Built Graffiti, RaiJs and Maintenance 50% , 4,150 Sridoe y, 2,075 Total 2,075 Totar Landscape Maintenance $ 2,850,789 mMuniRnancial Page C - 6 6-35 City of Chula Vista Community FadJities Distn"ct No. 13M (Otay &neh Villax' Two) STORM WATER QUALITY MAINTENANCE Cost Heritage Road and Olympic Parkway Quantlty p.' Unit perVear Annual Cost Annual Inspections for Storm FiltElfS 1 , 830 Service , $ 830 MaintenancelCleanout! for 5tcrm Filters , $ 1,815 Service , $ 1,815 Stormwater 360 Storm FIlter (cartridges) '59 $ 210 Servies 0.' , 16,695 Vortechnlc 16000 Slarmwaler Treatment Unit , $ 3,5QOSeltllca 1 , 3,500 T"" $ 22,839 Cost West@Santa Victoria and Olympic Parkway Quantity p.' Unit per Year Annual Cost Annual Inspectlons for Storm Filters 1 $ 630 Service 1 $ '30 Maintenance/Cleanouts for Storm Filters , $ 1,815 Service 1 $ 1,815 Slormwater 360 Storm Filter (cartridges) 50 $ 210 Sel'Vice 0.' $ 8,400 Vortechnic 16000 Slarmwater Treatment Unit 1 , 3.500 Service 1 , 3,500 Total , 14,544 Cost South of Village Two" outlet Into Wolf ClInyon Detention BasIn Quantity p.' Unit per Year Annual Cost Annual Inspections for Storm Filters 1 , 830 Service , , 5." MaintenancelCleanouts for Storm Filters 1 , 1,815 Service , , 1,815 Stormwater 360 Storm Filter (cartridges) '56 $ 210 Service 0.' , 19,530 Vorteet1nic 16000 Stormwater Treatment Unit , , 3,500 Service 1 , 3.500 To"' , 25,674 Cost E,st Quantity p., Unit per Year Annual Cost Annuallnspectlons for Slorm Filters 1 , 830 Service 1 $ '30 MaintenancelCleanouts for Storm Filtan; 1 , 1,815 Service 1 $ 1,815 Bio-dean Round Basket Curb Inlets , , 80 Service , , 1,440 Slormwater 360 Storm Filter (cartridges) 50 , 210 Service 0.' , 8,400 Vorteelmlc 16000 StOll1lWater Treatment Unit 1 , 3,500 Service 1 , 3.500 Total , 15,984 Village Two Neighborhood R~15 (drain:slnto VIllage Seven unit) Quantity p.' UnIt per Year Annual Cost Vorteel1nie Stormwaler Treatment Unit in \lillaae Seven (shared) 0,043 3.500 Service 1.000 , 145 Total , 145 Wolf Canyon Detention Basin Vegetation Removal (slope area) 58,500 , 0.23 Sq.Ft Yc , 13,455 Silt Removal (bollom area) 18,020 , 0.46 Sq.Ft Yc $ 8,289 Engineers Inspection , 1,037 Service 1 , 1,037 Periodic Inspec:tion and Maintenance 13 crew, 4 hrs S51.85hrl , 622 Service 4 , 2,489 T"'" , 25,270 Poggi Canyon Channel 3,152 Service 3,152 Detention Sasin 4,275 Service 4.275 Total 7,428 Vactor Truck Replacement 0.13 4,734Service y, 615 Total Storm Water Quality Maintenance 112,504 TOTAL ANNUAL BUDGET Totall.andscape and Storm Water Quality Maintenance $ 2,963,294 Administrative Expenses $ 41,480 Reserve $ 300,4n Total AnnuliIl Cost 3,306.251 The descciption of the F""ilities onds"r.-tces,.. >Ct forth herein, il ~netal in its nature. The finalrul.t:ur. oflh. F:lCilitie$ a.nd SenriClOS will b. ciowmin.dupon th..Agenq'. opp<onI. II MuniFll1anciaJ Page C - 7 6-36 EXHIBIT '5 ,...- ." \\ \\ ,\ \\ / \ \ ..',...<>-- .~,,;:;::::::.~~(:::/' -- ..---::~:..-;;::':-::;~.'~'~-~_.' '::::::.:-==--- , , \\ II 6-37 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, FORMING AND ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 13M (OTAY RANCH VILLAGE TWO), AND AUTHORIZING SUBMITTAL OF LEVY OF SPECIAL TAXES WITHIN THE CFD TO THE QUALIFIED ELECTORS THEREOF WHEREAS, a public hearing has been held and concluded, and the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA (the "City Council"), now desires to proceed with the establishment of a community facilities district, pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982", being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the "Act") and the City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the "Ordinance") (the Act and the Ordinance may be referred to collectively as the "Community Facilities District Law"). Such Community Facilities District shall hereinafter be referred to as COMMUNITY FACILITIES DISTRICT NO. 13M (OTAY VILLAGE TWO) (the "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 services 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, all communications relating to the establishment of the District, the proposed services and the rate and method of apportionment of the 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 within the District; 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. SECTION 2. Determinations. It is hereby determined by this City Council that: A. All prior proceedings pertaining to the formation of the District were valid 1 6-38 and taken in conformity with the requirements of the law, and specifically the provisions of the Community Facilities District Law, and that this finding and determination is made pursuant to the provisions of Govemment 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, therefore, the special tax proposed to be levied within the District has not been precluded by majority protest pursuant to Section 53324 of the Govemment Code of the State of California. C. The District as proposed conforms with the City ofChula Vista Statement of Goals and Policies Regarding the Establishment of Community Facilities Districts (the "Goals and Policies"), as amended. D. Less than twelve (12) registered voters have resided within the territory of within 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 term is defined in Government Code Section 53317(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 ofthe qualified electors of the District. F. The City Clerk, acting as the election official, has consented to conducting any required election on a date which is less than 125 days following the adoption of any resolution forming and establishing the District. SECTION 3. Communitv Facilities District Report. The Community Facilities District Report, as now submitted, shall stand as the Community Facilities District Report for all future proceedings and all terms and contents are approved as set forth therein. SECTION 4. Name of District. This legislative body does hereby establish and declare the formation of the Community Facilities District known and designated as "COMMUNITY FACILITIES DISTRICT NO. 13M (OTA Y VILLAGE TWO)." SECTION 5. Boundaries of the District. The boundaries of the District are generally described as follows: 2 6-39 All property within the boundaries of COl\1MUNITY FACILITIES DISTRICT NO. 13M (OTAY VILLAGE TWO), as shown on a boundary map as previously approved by this legislative body, such map designated by the name of this Community Facilities District, a copy of which is on file in the Office of the City Clerk. The boundary map of the proposed District has been filed pursuant to Sections 3111 and 3113 of the Streets and Highways Code of the State of California in the Office of the County Recorder of the County of San Diego, at Page 39 of Book 38 of the Book of Maps of Assessment and Community Facilities Districts for such County. SECTION 6. Description of Services. It is the intention of this City Council to finance certain services that are in addition to those provided in or required for the territory within the District and will not be replacing services already available. A general description of the services to be provided is listed on Exhibit "A" hereof. SECTION 7. Special Tax. Except where funds are otherwise available, special taxes, secured by recordation of a continuing lien against all non-exempt real property in the District, are hereby authorized, subject to voter approval, to be levied annually within the boundaries of such District. Under no circumstances will the special tax authorized to be levied within the District be increased as a consequence of delinquency or default by the owner of any other parcel or parcels used for private residential purposes and located within the District by more than 10 percent. For further particulars as to the rate and method of apportionment of the special tax proposed to be levied within the District, reference is made to the attached and incorporated Exhibit "B," which sets forth in sufficient detail the method of apportionment to allow each landowner or resident within the District to clearly estimate the maximum amount that such person will have to pay for such services. The special taxes herein authorized 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; however, as applicable, this legislative body may, by resolution, establish and adopt an alternate or supplemental procedure as necessary. Any special taxes that may not be collected on the County tax roll shall be collected through a direct billing procedure by the Treasurer of the City of Chula Vista, acting for and on behalf of the District. 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, 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. 3 6-40 SECTION 8. Special Tax Accountability Measures. Pursuant to and in compliance with the provisions of Government Code Section 50115.1, 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. Each such special tax shall be levied for the specific purposes set forth in Section 7 above. B. The proceeds of the levy of each 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 each 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 50115.3. SECTION 9. Preparation of Annual Tax Roll. The name, address and telephone number of the office, department or bureau which will be responsible for preparing annually a current roll of special tax levy obligations by Assessor's parcel number and which shall be responsible for estimating future special tax levies pursuant to Section 53340.1 of the Government Code of the State of California, are as follows: Engineering Department City of Chula Vista 276 Fourth Avenue Chula Vista, CA 92010 (619) 691-5021 SECTION 10. Election. This legislative body herewith submits the levy of the special taxes to the qualified electors of the District, such electors being the landowners within the District with each landowner having one (1) vote for each acre or portion thereof of land which he or she owns within the District. This legislative body hereby further directs that a separate ballot proposition relating to the levy of the above referenced special taxes within the District be combined and consolidated with the proposition set forth in Section 11 below relating to the establishment of an appropriations limit for the District. The proposition related to the levy of the special taxes shall, together with a proposition to establish an appropriations limit for the District, shall be submitted to the qualified voters at a special election to be held on (a) January 16, 2007, or (b) such other date as the qualified electors and the City Clerk may mutually agree and such election shall be a special election to be conducted by the City Clerk (hereinafter referred to as the "Election Official"). If either or both of the propositions for the levy of the special taxes receive the approval of more than two-thirds 4 6-41 (2/3rds) of the votes cast on the proposition, the special tax thereby approved may be levied as provided for in this Resolution. SECTION 11. Ballot Proposals. The ballot proposals to be submitted to the qualified voters at the election shall generally be as follows: PROPOSITION A Shall Community Facilities District No. 13M (Otay Ranch Village Two) of the City of Chula Vista, California, subject to accountability measures set forth in California Government code section 50075.1, be authorized to levy special taxes within such district pursuant to the rate and method of apportionment of special taxes (the "Rate and Method") set forth in Resolution No. 2006-350 for the purposes of financing the Special Tax Requirement as defined in the Rate and Method? PROPOSITION B Shall the Community Facilities District No. 13M (Otay Ranch Village Two) ofthe City of Chula Vista, California, establish an Article XIIIB appropriations limit equal to $2,000,000? SECTION 12. Vote. The appropriate mark placed in the voting square after the word "YES" shall be counted in favor of the adoption of the proposition, and the appropriate mark placed in the voting square after the word "NO" in the manner as authorized, shall be counted against the adoption of such proposition. SECTION 13. Election Procedure. The Election Official is hereby authorized to take any and all steps necessary for holding the above election. The Election Official shall perform, or caused to be performed and rendered, and render all services and proceedings incidental to and connected with the conduct of the election, including but not limited to, the following: 1. Prepare and furnish to the necessary election supplies for the conduct of the election. 2. Print the requisite number of official ballots, tally sheets and other necessary forms. 3. Furnish official ballots for the qualified electors of the District. 4. Present the official ballots to the qualified electors, as required by law. 5. Receive the returns of the election and supplies. 6. Sort and assemble the election material and supplies III preparation for the canvassing of the returns. 7. Canvass the returns of the election. 5 6-42 8. Furnish a tabulation of the number of votes given in the election. 9. Conduct and handle all other matters relating to the proceedings and conduct of the election in the manner and form as required by law. PREPARED BY: APPROVED AS TO FORM BY: ~ft1)A) ~ore l i Attorney Scott Tulloch City Engineer 6-~3 EXillBIT "A" COMMUNITY FACILITIES DISTRICT No. 13M (OTAY VILLAGE Two) LIST OF AUTHORIZED SERVICES The maintenance of (a) landscaping, including, but not limited to, parkways, medians and slopes; (b) facilities that are directly related to storm water quality control; (c) walls and fencing; (d) trails; (e) pedestrian bridges, including, but not limited to, graffiti removal; and (f) public lighting facilities, including, but not limited to, pedestrian lighting and decorative or ornamental public lighting (collectively the "Improvements"). Such maintenance shall include, but not be limited to, the provision of all labor, material, administration, personnel, equipment and utilities necessary to maintain such Improvements. B- 1 6-44 Exhibit B Community Facilities District No. 13M (Otay Village Two) RATE AND METHOD OF APPORTIONMENT B-2 6-45 Community Facilities Distrid No. 131\11 (Oft!) Ronch Village Two) City of Chulo Vista EXHIBIT A: RATE AND METHOD OF ApPORTIONMENT CITY OF CHULA VISTf' COMMUNITY FACILITIES DISTRrCT NO.1 3M (OTAY RANCH VILLAGE Two) A Special Tax of Community Facilities District No. 13M (Otay Ranch Village Two) of the City of Chula Vista ("CFDn) shall be levied on all Assessor's Parcels of Taxable Property within the CFD and collected each Fiscal Year commencing in Fiscal Year 2007-2008 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 in 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. DEFINITIDNS 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 formation and administration of the CFD; the costs of collecting installments of the Special Taxes; and any other costs required to form or administer the CFD as determined by the City. "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel J\;Iap 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, at designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. IlIMuniFmancial Page A-I 6-46 Community Facilities District j\[o. 13.lv[ (Otqy Ranch Vtllage Two) City of Chufa Vista "CFD" means Community Facilities District No. 13M (Otay Ranch Village Two) 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, as defined in the City of Chula Vista Ordinance No. 2883. "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 is issued prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied. "Final Map Property" means any residential 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 ,vithout further subdivision and is recorded prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Land Use Class" means any of the classes listed in Table 1 or Table 2. "Landscape Maintenance" means the labor, material, administration, personnel, equipment and utilities necessary to maintain authorized landscaped improvements, walls and fencing, trails, and pedestrian bridges within the public right-of-ways, parkways, slopes, wetlands and other public easements/improvements within or outside the CFD. "Landscape Maintenance Requirement" means, for any Fiscal Year in which Special Taxes are levied, the amount equal to the budgeted costs for Landscape Maintenance applicable to the CFD for such Fiscal Year. "Lighting Maintenance" means the labor, material, administration, personnel, equipment and utilities necessary to maintain authorized lighting improvements including, but not limited to, pedestrian lighting and decorative or ornamental street lights within the public EMuniFinancial Page A-2 6-47 Commllni'ry Facilities Distnd No. 13i.VI (Otc!} Ro:nt'h Village T w) Ciry of Chala Vista right-of-ways, parkways, slopes, wetlands and other public easements/improvements within or outside the CFD. The lighting improvements may include but are not limited to the cost of providing electrical energy and servicing of lighting fixtures, poles, meters, conduits, electrical cable and associated appurtenant facilities including repair, removal, or replacement. "Lighting Maintenance Requirement" means, for any Fiscal Year in which Special Taxes are levied, the amount equal to the budgeted costs for Lighting Maintenance applicable to the CFD for such Fiscal Year. "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 for the CFD for each Fiscal Year to pay for Landscape Maintenance, Lighting Maintenance, Storm \Vater Quality Maintenance and Administrative Expenses. "Operating Fund Requirement" means, for any Fiscal Year, the sum of the applicable Landscape Maintenance Requirement, the applicable Lighting Maintenance Requirement, and the applicable Storm \'V'ater Quality Maintenance Requirement. "Other Taxable Property" means, for each Fiscal Year, all Ta..nble Property not classified as Developed Property, Final Map Property, or Taxable Property Owners Association Property. "Property Owner Association Property" means any property within the boundaries of the CFD that is owned by, or irrevocably dedicated as indicated in an instrument recorded with the County Recorder to, a property owner association, including any master or sub- association, "Proportionately" means in a manner such that the ratio of the actual Special Tax levied to the Maximum Special Tax is equal for all Assessor's Parcels within each Land Use Class. For Developed Property, it means that the ratio of the actual Special Tax levied to the Maximum Special Tax is equal for all Assessor's Parcels of Developed Property. For Final Map Property, it means that the ratio of the actual Special Tax levied to the Ma..'<imum Special Tax is equal for all Assessor's Parcels of Final Map Property. For Undeveloped Property, it means that the ratio of the actual Special Tax levied to the Maximum Special Tax is equal for all Assessor's Parcels of Undeveloped Property. "Public Property" means any property within the boundaries of the CFD that has provided proof to the City prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied, that (a) is owned by a public agency, (b) has been irrevocably llMuniFinancial Page A.3 6-48 COIJlt7tttmry Fatilities Distntt l\i~o. 131vf (O/cry &.mt'h Village Two) City of Chu/a Vi,!a 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 or irrevocably dedicated to a public agency. For purposes of this definition, a public agency includes the federal government, the State of California, the City or any other public entity. "Reserve Fund" means a fund that shall be maintained for the CFD for each Fiscal Year to provide necessary cash flow for the first SL'C months of each Fiscal Year, reserve 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 Requirement" means an amount equal to up to 100% of the Operating Fund Requirement for any Fiscal Year. "Residential Dwelling Unit" means each separate residential dwelling unit which comprises an independent facility capable of human habitation separate from adjacent residential units, including but not limited to, single-family homes, duplexes, triplexes, town homes, condominiums, and apartment units. "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 Units. "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 the CFD to fund the Special Tax Requirement. "Special Tax Requirement" means that amount required in any Fiscal Year for the CFD to: (a) (i) pay the Landscape Maintenance Requirement; (il) pay the Lighting Maintenance Requirement (ill) pay the Storm Water Quality Maintenance Requirement; (iv) pay reasonable Administrative Expenses; (v) pay any amounts required to establish or replenish the Reserve Fund to the Reserve Fund Requirement; (vi) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year; less (b) a credit for funds available to reduce the annual Special Tax levy, including the excess, if any, in the Reserve Fund above the Reserve Fund Requirement. "Square Foot" means the building square footage of assessable internal living space as shown on an Assessor's Parcel's building permit of Residential Property, excluding garages or other structures not used as living space. "State" means the State of California. "Storm Water Quality Maintenance" means the maintenance of authorized detention basins, storm drains, catch basin inserts, hydrodynamic devices, infiltration basins, and all other facilities that are directly related to storm water quality control within or outside the CFD. "Srorm Water Quality Maintenance Requiremenr" means for any Fiscal Year an amount equal to the budgeted costs for Storm \Vater Quality Maintenance applicable to the CFD for II MuniFrnancial Page A.4 6-49 Commumry Faci/itif].f Distnd No. 131'11 (Oft!) &:rf/ch Village T JVO) City Ilf Cbula Virla the current Fiscal Year in which Special Taxes are levied. "Taxable Property" means all of the Assessor's Parcels within the boundaries of the CFD that are not exempt from the Special Tax pursuant to law or as defined below under "Tax- Exempt Property. : "Tax-Exempt Property" means an Assessor's Parcel not subject to the Special Tax. Tax- Exempt Property includes: (i) Public Property, or (il) Property Owner Association Property excluding Taxable Property Owner Association Property, or (ill) Assessor's Parcels defined as Community Purpose Facility Property that are owned by a non-profit organization and have provided proof to the City prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied of the organization's non-profit status, or (v) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement. "Taxable Property Owner Association Property" means all Association Property which is not exempt from the Special Tax pursuant to Section E below. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property. B. ASSIGNMENT TD LAND USE CATEGDRIES Each Fiscal Year using the definitions in Section A, all Taxable Property within the CFD shall be classified as Developed Property, Final Map Property or Undeveloped Property, and shall be subject to the levy of 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. Undeveloped Property shall be further assigned to a Land Use Class as specified in Table 2. Assessor's Parcels of CPF Property not classified as exempt in accordance with Section E below shall be taxed as Non-Residential Property when such Assessor's Parcel is classified as Developed Property. If the Assessor's Parcel is Undeveloped it shall be classified as Other Taxable Property. liMuniFinancial Page A.5 6-50 Community Fadlities District No. 13hf (O/cry Ranch Village T /po) Ciry ofChula Vista C. MAXIMUM SPECIAL TAX RATE 1 . DEVELOPED PROPERTY .' TAB LE 1 MAXIMUM SPECIAL TAX FOR DEVELOPED PROPERTY COMMUNITY FACILITIES DISTRICT NO.1 3M (OTAY RANCH VILLAGE TWo) FISCAL YEAR 2006-2007 Land Storm Maximum Use Descriprion Landscape Water Quality Special Tax Class & Lighting Maintenance Maintenance 1 Single Family and $0.424 per Square $0.016 per $0.440 per Multi Family Foot Square Foot Square Foot Residential Property 2 Non-Residential $7,079.36 per $279.38 per $7,358.74 per Property Acre Acre Acre Multiple Land Use Classes In some instances an Assessor's Parcel of Developed Property may be classified in more than one Land Use Class; e.g., live/work lofts or similar mixed use developments. The Maximum Special Tax that may be levied on such an Assessor's Parcel 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. IlMuniFlf1ancial Page A-6 6-51 Community Facilities Disfnd No. 13lvI (Oft!) Ranch Village T 11/0) City of Chula Vista 2. UNDEVELOPED PROPERTY TABLE 2 MAXIMUM SPECIAL TAX FOR UNDEVELOPED PROPERTY COMMUNITY FACILITIES DISTRICT ~O. 13M (OTAY RANCH VILLAGE Two) FISCAL YEAR 2006-2007 Land Landscape Storm Maximum Use Description & Lighting Water Quality Special Tax Ciass Maintenance Maintenance 3 Final Map Property $7,079.36 per $279.38 per Acre $7,358.74 per Acre Acre 4 Other Taxable $7,079.36 per $279.38 per Acre $7,358.74 per Property Acre Acre 5 Taxable Property $7,079.36 per $279.38 per Acre $7,358.74 per Owner Association Acre Acre Property 3. ANNUAL ESCALATION OF MAXIMUM SPECIAL TAX The Maximwn Special Tax as shown in the tables above that may be levied on each Assessor's Parcel in the CFD shall be increased each Fiscal Year beginning in Fiscal Year 2007-2008 and thereafter by a factor equal to the greater of, the annual percentage increase, if any, in the San Diego Metropolitan Area All Urban Conswner Price Index (All Items) as reported by the State of Califorrua Department of Finance, or 4%. II MuniFinancial Page A.7 6-52 Conrmumty Facilities DiJtnd IT\[O. 13iVl (Ot'!)! &rm'h Vtilage Tlvo) City of Chuh Vista D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2007-2008, and for each following Fiscal Year, the Council shall levy the CFD Special Tax at the rates established pursuant to steps 1 through 4 below so that the amount of the Special Tax levied equals the Sp~cial 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 up to 100% of the applicable Maximum Special Tax; Second: If additional monies are needed to satisfy the Special Tu Requirement after the fIrst step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Final Map Property at up to 100% of the Maximum Special Tax for Final Map Property; Third: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Ta.." shall be levied Proportionately on each Assessor's Parcel of Other Taxable Property at up to 100% of the Maximum Special Tax for Other Taxable Property; Emw:h: If additional moneys are needed to satisfy the Special Tax Requirement after the fIrst three steps have been completed, the Special Tax shall be levied proportionately on each Assessor's Parcel of Taxable Property Owner Association Property at up to 100% of the applicable Muimum Special Tax for Taxable Property Owner Association Property. Notwithstanding the above, under no circumstances ,vi]] the Special Tax levied against any Assessor's Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased by more than ten percent annually up to the Maximum Special Tax as a consequence of delinquency or default in the payment of the Special Tax levied on any other Assessor's Parcel within the CFD. E. EXEMPTIONS The CFD Administrator shall classify as Tax-Exempt Property (i) i\ssessor's Parcels defined as Public Property, (Ii) Assessor's Parcels defined as Community Purpose Facility Property that are owned by a non-profit organization which have provided proof to the City prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied of the organization's non-profit status, and (ill) Assessor's Parcels encumbered ,vith public or utility easements making impractical their utilization for other than the purposes set forth in the eas emen t. The CFD Administrator shall classify as Tax-Exempt Property those Assessor's Parcels defIned as Property Owner's Association Property provided that no such classifIcation would reduce the sum of all Taxable Property to less than 449.20 Acres. Assessor's Parcels defIned as Property Owner Association Property that cannot be classifIed as Tax-Exempt Property will be classified as Taxable Property Owner Association Property and shall be taxed as part of the fourth step in Section D. II MuniFfIlancial Page A-8 6-53 Community Fat'Zliti/!s District No. 13lvI (Otqy &nd) Vii/age Two) City of Chllia Vista The CFD Administrator will assign tax-exempt status in the chronological order in which property becomes Public Property, Community Purpose Facility Property or Tax-Exempt Property Owner Association Property. However, should an Assessor's Parcel no longer be classified as Public Property, Community Purpose Facility Property or Tax-Exempt Property Owner Association Property as a result of a change of ownership, change of use or both, its tax-exempt status will be automatically revoked. : Taxable Property Owner Association Property that is not exempt from the Special Tax under this section shall be subject to the levy of the Special Tax and shall be ta.-.oed Proportionately as part of the fourth step in Section D above, at up to 100% of the applicable Maximum Special Tax for Ta.-.oable Property Owner Association Property. F. 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 flIst consult ,vith 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 ,vith 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. G. 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 direcdy bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet the fmancial obligations of the CFD or as otherwise determined appropriate by the CFD Administrator. H. TERM OF SPECIAL TAX Taxable Property in the CFD shall remain subject to the Special Tax in perpetuity or until the City Council takes appropriate actions to terminate the Special Ta.-.o pursuant to the Act. II MuniRnancial Page A-9 6-54