HomeMy WebLinkAbout2007/01/23 Item 3
CITY COUNCIL
AGENDA STATEMENT
~~ CITY OF
. .;:;~ CHULA VISTA
01/23/07 Item...;'
ITEM TITLE:
DECLARE ELECTION RESULTS REGARDING LEVY
OF SPECIAL TAXES WITHIN COMMUNITY
FACILITIES DISTRICT NO. 13M (OTAY RANCH
VILLAGE TWO) AND THE ESTABLISHMENT OF AN
APPROPRIATIONS LIMIT THEREIN AND
AUTHORIZE THE LEVY OF SPECIAL TAXES
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA, CALIFORNIA, DECLARING THE
RESULTS OF A SPECIAL ELECTION IN SUCH
COMMUNITY FACILITIES DISTRICT NO. 13M (OTAY
RANCH VILLAGE TWO)
ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA, CALIFORNIA, AUTHORIZING THE
LEVY OF A SPECIAL TAX WITHIN COMMUNITY
FACILITIES DISTRICT NO. 13M (OTAY RANCH
VILLAGE TWO)
SUBMITTED BY:
REVIEWED BY:
CITY ENGINEER.P /
INTERIM CITY MANAGER;j1
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. On January 9,2007,
the City Council approved the formation and establishment ofCFD No. 13M by adoption
of Resolution 2007-008. On January 16, 2007, a Special Tax Election for CFD No. 13M
was conducted. Tonight's action is 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 (I) public lighting facilities.
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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.
RECOMMENDATION
That Council:
1. Approve the resolution declaring the results of a special election in such
Community Facilities District No. 13M (Otay Ranch Village Two), and
2. Approve the ordinance authorizing the levy of special tax within Community
Facilities District No. 13M (Otay Ranch Village Two).
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 (l) 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") approved at the
November 21, 2006, Council meeting.
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OI!23!07,Item~
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During its November 21,2006 meeting, the City Council approved Resolution No. 2006-
351, which ordered the preparation ofa Community Facilities District Report ("Report").
The Report was approved on January 9, 2007.
During its January 9, 2007 meeting, City Council approved Resolution No. 2007-008
which ordered the formation and establishment of Community Facilities District No. 13M
and authorized the electors to vote on the special taxes.
During its January 9, 2007, meeting, City Council authorized the City Clerk to conduct
the special election and the special election was conducted on January 16,2007.
Resol uti on/Ordinance
The City Clerk, acting as the designated election official, has held a special election
within Community Facilities District No. 13M (Otay Ranch Village Two), on January 16,
2007 at which time the qualified electors, being the owners of land within such
Community Facilities District No. 13M were entitled to vote on ballot propositions to
authorize the levy of the special taxes described above. The results of the election showed
that the levy of special tax was approved by the electors.
There are one resolution and one ordinance on today's agenda, which, if adopted, will
accomplish the following:
1. Declare the results of the special election, which was held on January 16, 2007,
for Community Facilities District No. 13M.
2. The Ordinance authorizing the levy of a special tax is the formal action of the
City Council authorizing the levy of a special tax within Community Facilities
District No. 13M (First reading).
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.
FISCAL IMP ACT
All costs offormation 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
staff time expended in district formation and administration activities in perpetuity.
EXHIBITS
A. Certificate of Election Official and Statement of Votes Cast
Prepared by: Boushra Salem, Senior Civil Engineer, Engineering Department
3-3
EXHIBIT "A"
CERTIFICATE OF ELECTION OFFICIAL
AND STATEMENT OF VOTES CAST
STATE OF CALIFOR.'JIA )
COUNTY OF SAN DIEGO ) ss.
CITY OF CHULA VISTA )
The undersigned, ELECTION OFFICIAL OF THE CITY OF CHULA VISTA, COUNTY OF SAN
DIEGO, STATE OF CALIFORNIA, DOES HEREBY CERTIFY that pursuant to the provisions of
Section 53326 of the Government Code and Division 12, commencing with Section 17000 of the
Elections Code of the State of California, I did canvass the returns of the votes cast at the
CITY OF CHULA VISTA
COMMUNITY FACILITIES DISTRICT NO. 13M
(OTA Y RANCH VILLAGE TWO)
SPECIAL ELECTION
in said City, held January 16,2007.
I FURTHER CERTIFY that this Statement of Votes Cast shows the whole number of votes cast in said
District in said City, and the whole number of votes cast for the Measures in said District in said City,
and the totals as shown for the Measures are full, true and correct.
1.
VOTES CAST ON PROPOSITION A:
YES
NO
738
o
2.
VOTES CAST ON PROPOSITION B:
YES 738
NO 0
WITNESS my hand and Official Seal this
day of
,2007.
CITY CLERK
ELECTION OFFICIAL
CITY OF CHULA VISTA
STATE OF CALIFORNIA
SDPUBIKSAL 1'\342302.1
3-4 "
~
RESOUITION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA,
CALIFORNIA, DECLARING THE RESULTS OF A SPECIAL ELECTION IN
SUCH COMM1JNITY FACILITIES DISTRICT NO. 13M (OTAY RANCH
VILLAGE TWO)
WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFOR.NIA (the
"City Council"), has previously undertaken proceedings to create and did establish 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"). This
Community Facilities District is referred to as COMMUNITY FACILITIES DISTRlCT NO.
13M (OTA Y RANCH VILLAGE TWO) (the "District"); and,
WHEREAS, this City Council did call for and order to be held an election to submit to
the qualified electors of the District a proposition relating to the levy of special taxes within the
District and a separate proposition relating to the establishment of an appropriations limit for the
District; and,
WHEREAS, at this time said election has been held and the measures voted upon and
each such measure did receive the favorable 2/3 's vote of the qualified electors, and this City
Council desires to declare the results of the election in accordance with the provisions of the
Elections Code of the State of California.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA,
CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES
DISTRICT NO. 13M (OTAY RANCH VILLAGE TWO), DOES HEREBY RESOLVE,
DECLARE, FIND, DETERMfr.!'E A.J.'-iTI ORDER AS FOLLOWS:
SECTION 1. The above recitals are all true and correct.
SECTION 2. This City Council hereby receives and approves the CERTIFICATE OF
ELECTION OFFICIAL MTI STATEMENT OF VOTES CAST, as submitted by the City Clerk,
acting in her capacity as the Election Official, said Statement identifying the measures voted
upon and the number of votes given for and/or against the measures voted upon. A copy of said
Certificate and Statement is attached hereto, marked Exhibit "A," referenced and so
incorporated.
SECTION 3. The City Clerk is hereby directed, pursuant to the provlSlons of the
Elections Code of the State of California, to enter in the minutes the results of the election as set
forth in said STATEMENT OF VOTES CAST.
1
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PREPARED BY:
Scott Tulloch
City Engineer
3-6
APPROVED AS TO FORM BY:
Ci
2
EXHIBIT "A"
CERTIFICATE OF ELECTION OFFICIAL
AND STATEMENT OF VOTES CAST
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss.
CITY OF CHULA VISTA )
The undersigned, ELECTION OFFICIAL OF THE CITY OF CHULA VISTA, COUNTY OF SAN
DIEGO, STATE OF CALIFORNIA, DOES HEREBY CERTIFY that pursuant to the provisions of
Section 53326 of the Government Code and Division 12, commencing with Section 17000 of the
Elections Code of the State of California, I did canvass the returns of the votes cast at the
CITY OF CHULA VISTA
COMMUNITY FACILITIES DISTRICT NO. 13M
(OTAY RANCH VILLAGE TWO)
SPECIAL ELECTION
in said City, held January 16, 2007.
I FURTHER CERTIFY that this Statement of Votes Cast shows the whole number of votes cast in said
District in said City, and the whole number of votes cast for the Measures in said District in said City,
and the totals as shown for the Measures are full, true and correct.
1.
VOTES CAST ON PROPOSITION A:
YES
NO
738
o
2.
VOTES CAST ON PROPOSITION B
YES 738
NO 0
WITNESS my hand and Official Seal this
day of
,2007.
CITY CLERK
ELECTION OFFICIAL
CITY OF CHULA VISTA
STATE OF CALIFORNIA
SDPUBIKSAL TIJ42J02.1
3-73
ORDINANCE NO.
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA, CALIFORNIA, AUTHORIZING THE LEVY
OF A SPECIAL TAX WITHIN COMMUNITY FACILITIES
DISTRICT NO. 13M (OTA Y RANCH VILLAGE TWO)
WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA (the
"City Council"), has initiated proceedings, held a public hearing, conducted an election and
received a favorable vote from the qualified electors authorizing the levy of a special taxes
within a community facilities district, all as authorized pursuant to the terms and provisions of
the "Mello-RoGS Community Facilities Act of 1982", being Chapter 2.5, Part I. 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"). This Community Facilities District is designated as COMMUNITY
FACILITIES DISTRICT NO. 13M (OTAY RANCH VILLAGE TWO) (the "District").
The City Council of the City of Chula Vista, California, acting as the legislative body of
Community Facilities District No. 13M (Otay Ranch Village Two), does hereby ordain as
follows:
SECTION 1, This City Council does, by the passage of this ordinance, authorize the
levy of special taxes within the District pursuant to the Rate and Method of Apportionment of
Special Taxes as set forth in Exhibit "A" attached hereto (the "Rate and Method"), referenced
and so incorporated.
SECTION 2. This City Council, acting as the legislative body of the District, is hereby
further authorized, by Resolution, to annually determine the special taxes to be levied within the
District for the then current tax year or future tax years, except that the special tax to be levied
within the District shall not exceed the maximum special tax calculated pursuant to the Rate and
Method, but the special tax may be levied at a lower rate.
SECTION 3. The special taxes herein authorized, to the extent possible, shall be
collected in the same manner as ad valorem property taxes and shall be subject to the same
penalties, procedure, sale and lien priority in any case of delinquency as applicable for ad
valorem taxes; provided, however, the District may utilize a direct billing procedure for any
special taxes that cannot be collected on the County tax roll or may, by resolution, elect to collect
the special taxes at a different time or in a different manner if necessary to meet its financial
obligations.
SECTION 4. The special taxes shall be secured by the lien imposed pursuant to Sections
3114.5 and 3115.5 of the Streets and Highways Code of the State of California, which lien shall
be a continuing lien and shall secure each levy of the special tax. The lien of the special tax shall
continue in force and effect until the special tax obligation is prepaid, permanently satisfied and
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Ordinance No.
Page 2
canceled in accordance with Section 53344 of the Government Code of the State of California or
until the special tax ceases to be levied by the City Council in the manner provided in Section
53330.5 of said Government Code.
SECTION 5. This Ordinance shall be effective thirty (30) days after its adoption.
Within fifteen (15) days after its adoption, the City Clerk shall cause this Ordinance to be
published in a newspaper of general circulation in the City pursuant to the provisions of
Government Code Section 36933.
PREPARED BY:
APPROVED AS TO FORM BY:
Scott Tulloch
City Engineer
H:\ENGINEER\RESOS\R~sos2007\U 1-2J-07\CFD lJI'v1 OnJil1<1llce Authorizing Levy or Special T,uts.DOC
3-92
Exhibit "A"
Rate and Method of Apportionment
A-l
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RATE AND METHOD OF ApPORTIONMENT
CITY OF CHULA VISTA
COMMUNITY FACILITIES DISTRICT NO. 97-2
IMPROVEMENT AREA C
ANNEXATION NO.6 (OTAY RANCH VILLAGETwo)
A Special Tax of Commupjty Facilities District No. 97-2 (preserve Maintenance District) of
the City of Chula Vista ("CFD") shall be levied on all Assessor's Parcels in Improvement
Area C, Annexation No.6 (Otay Ranch Village Two), of the CFD and collected each Fiscal
Year commencing with Fiscal Year 2006-2007 in an amount deternained 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 Assessor1s
Parcel Map, or if the land area is not shown on an Assessoes 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 deternaine, levy and
collect the Special Taxes, including salaries of City employees and a proportionate amount of
the City's general administrative overhead related thereto, and the fees of consultants and
legal counsel providing services related to the administration of the CFD; the costs of
collecting installments of the Special Taxes; and any other costs required to administer Area
C of the CFD as determined by the City.
"Assessor's Parcel" means a lot or parcel shown in an AssessorTs 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.
"Building Square Foot or Square Footage" means the square footage as shown on an
Assessor's Parcel's building permit of Residential Property excluding garages or other
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structures not used as living space.
"CFD Administrator" means an official of the City, or designee thereof, responsible for
determining the SpeClal Tax Requirement and providing for the levy and collection of the
Special Taxes.
"CFD" means Community Facilities District No. 97-2 of the City ofChula Vista.
"City" means the City of Chula Vista.
"City Clerk" means the City Clerk for the City of Chula Vista or his or her designee.
"City Manager" means the City Manager for the City of Chula Vista or his or her designee.
"Community Purpose Facility Property" or "CPF Property" means all Assessor's
Parcels which are classified as community purpose facilities and meet the requirements of
City of Chula Vista Ordinance No. 2883.
"Council" means the City Council of the City of Chula Vista, acting as the legislative body
of the CFD.
"County" means the County of San Diego, California.
"Developed Property" means all Taxable Property for which a building permit was issued
prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied.
"Final Map Property" means any residential lot or non-residential lot created by a Final
Subdivision Map, but which is not classified as Developed Property.
"Final Subdivision Map" means a subdivision of property creating residential or non-
residential buildable lots by recordation of a final subdivision map or parcel map pursuant to
the Subdivision Map Act (California Government Code Section 66410 et seq.), or
recordation of a condominium plan pursuant to California Civil Code 1352, that creates
individual lots for which building permits may be issued without further subdivision and is
recorded prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied.
"Fiscal Year" means the period starting]uly 1 and ending on the following]une 30.
"Improvement Area C" or "Area C" means Improvement Area C of the CFD, as
identified on the boundary map for the CFD as amended from time to time.
"Land Use Class" means any of the classes listed in Table 1, Table 2, or Table 3.
"Maximum Special Tax" means the maximum Special Tax, detennined in accordance
with Section C below that may be levied in any Fiscal Year on any Assessor's Parcel of
Taxable Property.
"Non-Residential Ptoperty" means all Assessor's Parcels of Developed Property for
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\.vhich a building permit(s) has been issued for a structure or structures for non-residential
lise.
"Operating Fund" means a fund that shall be maintained within the CFD for each Fiscal
Year to pay for Resource Monitoring and/ or Preserve Operations and Maintenance activities
and Administrative Expenses.
"Operating Fund Balance" means the amount of funds in the Operating Fund at the end
of the preceding Fiscal Year.
"Operating Fund Requirement" means for any Fiscal Year an amount equal to the
Resource Monitoring Fund Requirement and the Preserve Operations and Maintenance
Fund Requirement for the current Fiscal Year in which Special Taxes are levied.
!'Preserve Operations and Maintenance" means those activities desCl'ibed in Attachment
A hereto which is illcorporated herein by this reference.
"Preserve Operations and Maintenance Fund Requirement" means for any Fiscal Year
an amount equal to the budgeted costs for Preserve Operations and Mailltenance plus a pro-
rata share of the budgeted Administrative Expenses of the District for the current Fiscal
Year in which Special Taxes are levied.
"Property Owner Association Property" means any property "'~thin the boundaries of
Area C of the CFD that is owned by, or irrevocably dedicated as indicated in an instrument
recorded with the County Recorder to, a property owner association, including any master or
sub-association.
"Public Property" means any property within the boundaries of Area C of the CFD that is,
at the time of the CFD formation, expected to be used for any public purpose and is owned
by or dedicated to the federal government, the State, the County, the City or any other
public agency.
"Reserve Fund" means a fund that shall be maintained for the CFD each Fiscal Year to
provide necessary cash flow for the first six months of each Fiscal Year, working capital to
cover monitoring, maintenance and repair cost overruns and delinquencies in the payment of
Special Taxes and a reasonable buffer to prevent large variations in annual Special Tax levies.
"Reserve Fund Balance" means the amount of funds in the Reserve Fund at t.~e end of
the preceding Fiscal Year.
"Reserve Fund Requirement" means an amount equal to up to 100% of the Operating
Fund Requirement for any Fiscal Year.
"Residential Property" means all Assessor's Parcels of Developed Property for which a
building perrnit(s) has been issued for purposes of constructing one or more residential
dwelling unit.
"Resource Management Plan" means the Gtay Ranch Phase 1 Resource Management
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Plan also referred to as "The Otay Ranch Resource Management Plan" dated October 28,
1993, and the Otay Ranch Phase 2, Resource Management Plan dated June 4,1996, as both
such plans may be amended from time to time.
"Resource Monitoring Program" means those described in Attachment B hereto which is
incorporated herein by this reference.
"Resource Monitoring Fund Requirement" means for any Fiscal Year an amount for
each Improvement Area equal to the Improvement Area's fair share of the budgeted costs of
the Resource Monitoring Program plus a pro rata share of the budgeted Administrative
Expenses of the CFD for the current Fiscal Year in which Special Taxes are levied.
Improvement Area C's "fail: share" shall be based on Improvement .!\.rea C's percentage of
the total acreage within the Otay Ranch General Development Plan Planning Area for which
a Resource Monitoring Program funding mechanism has been established.
"Special Tax" means the Special Tax levied pursuant to the provisions of sections C and D
below in each Fiscal Year on each Assessor's Parcel of Developed Property and
Undeveloped Property in Area C to fund the Special Tax Requirement.
"Special Tax Requirement" means that amount required in any Fiscal Year for Area C to:
(i) pay the Resource Monitoring Fund Requirement, and Preserve Operations and
Maintenance Fund Requirement, less the Operating Fund Balance, and (il) pay any amounts
required to establish or replenish the Reserve Fund to the Reserve Fund Requirement; (Iii)
pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for
Special Taxes levied in the previous Fiscal Year.
"State" means the State of California.
"Taxable Property" means all of the Assessor's Parcels within the boundaries of Area C of
the CFD that are not exempt from the Special Tax pursuant to law or as defined below.
"Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified
as Developed Property.
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B. ASSIGNMENT TO CATEGORIES OF SPECIAL TAX
Each Fiscal Year using the definitions above, all Taxable Property within Area C,
Annexation No.6 (Otay Ranch Village Two), of the CFD shall be classified as Category I,
Category II, Category III or Exempt. Developed Property, Final Map Property or
Undeveloped Property, and shall be subject to Special Taxes pursuant to Sections C and D
below. Developed Properry shall be further assigned to a Land Use Class as specified in
Table 1.
C. MAXIMUM SPECIAL TAX RATE
CATEGORY I
Category I includes Developed Property within the District ("Category I").
The Maximum Special Tax for Resource Monitoring, and Preserve Operations and
Maintenance for Fiscal Year 2006-2007 on Developed Property are the rates set forth in
Table 1 below. For Residential Property, the Special Tax shall be levied based upon Building
Square Footage and for Non-Residential Property shall be levied based on Acreage.
TABLE 1
MAXIMUM SPECIAL TAX FOR CATEGORY I
COMMUNITY FACiLiTIES DISTRICT No. 97-2
IMPROVEMENT AREA C
(FISCAL YEAR 2006-2007)
Description Resource Operation & Total
Monitoring Maintenance
Residential $0.0062 sq ft $0.0099/ sq ft $0.0162/sq ft
Non- $101.1797/acre $160.6303/acre $261.81/ acre
Residential
CATEGORY II
Category II includes each Assessor's Parcel of Taxable Property within the District for which
a Final Map has been recorded, but which is not classified as a Developed Parcel ("Category
II")
The Maximum Special Tax for Resource Monitoring, and Preserve Operations and
Maintenance approved for Fiscal Year 2006-2007 on each Assessor's Parcel in Category II is
the rate set forth in Table 2 below (said amount to be levied pro rata for any portion of an
Acre).
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TABLE 2
MAXIMUM SPECIAL TAX FOR CATEGORY II
COMMUNITY FACILITIES DISTRICT No. 97-2
IMPROVEMENT AREA C
(FISCAL YEAR 2006-2007)
Resource Operation & Toral
Monitoring Maintenance
$101.1797/acre $160 6303/acre $261.81/acre
CATEGORY III
Category III includes each Parcel of Taxable Property within the Disnict not subject to
Special Tax under any other categOl"Y ("Category III").
The Maximum Special Tax approved for Fiscal Year 2006-2007 on Taxable Property within
Category III is the rate set forth in Table 3 below (said amount to be levied pro rata for any
portion of an Acre).
TABLE 3
MAXIMUM SPECIAL TAX FOR CATEGORY III
COMMUNITY FACILITIES DISTRICT No. 97-2
IMPROVEMENT AREA C
(FISCAL YEAR 2006-2007)
Resource Operation & Total
Monitoring Maintenance
$65.3004/acre $103.6696/acre $168.97/acre I
EXEMPT CATEGORY
The Exempt Category includes each property owned, conveyed or irrevocably offered for
dedication to a public agency, or land which is in the public right-of-way, unmanned utility
easements which make utilization for other than the purpose set forth in the easement
impractical, common areas, private streets and parks, and open space lots ("Exempt
Category") .
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SPECIAL CASES
In some instances an Assessor's Parcel of Developed Property may contain more than one
Land Use Class and be considered" Special Case". The Maximum Special Tax that may be
levied on an Assessor's Parcel identified as Special Case shall be the sum of the Maximum
Special Tax levies that may be levied on all Land Use Classes located on that Assessor's
Parcel. The CFD i\dministrator shall determine the allocation to each Land Use Class.
ANNuAL ESCALATION OF MAxIMUM SPECIAL TAX
The Maximum Special Tax as shown in the tables above that may be levied on each
Assessor's Parcel in Area C, Annexation No.6 (Otay Ranch Village Two), shall be increased
each Fiscal Year beginning in Fiscal Year 2007-2008 and thereafter by a factor equal to the
annual percentage change in the San Diego Metropolitan Area all Urban Consumer Price
Index (iill Items).
D. METHOD OF APPORTIONMENT OF THE SPECIAL
TAX
Commencing with Fiscal Year 2006-2007, and for each following Fiscal Year, the Council
shall levy the Area C, Annexation No.6 (Otay Ranch Village Two), Special Tax at the rates
established pursuant to steps 1 through 4 below so that the amount of the Special Tax levied
equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as
follows:
Step 1: Determine the revenue which could be generated by Parcels assigned to Category I
by multiplying the Building Square Footage for Parcels classified as Residential Parcels by the
Maximum Special Tax per Building Square Foot for Resource Monitoring, and Preserve
Operations and Maintenance for Parcels and adding to that the maximum revenue which
could be generated by multiplying the total acres for Parcels classified as Non-Residential
Parcels by the Maximum Special Tax per Acre for Resource Monitoring and Preserve
Operations and Maintenance,
Step 2: If the total revenue as calculated in Step 1 is greater than the estimated Special Tax
Liability for Improvement Area C, reduce the Special Tax for each Parcel proportionately so
that the Special Tax levy for the Fiscal Year is equal to the Special Tax liability for the Fiscal
Year.
Step 3: If the total revenue as calculated in Step 1 is less than the Special Tax Liability for
Improvement Area C, a Special Tax shall be levied upon each Parcel within Improvement
Area C, classified as Category II. The Special Tax for Parcels assigned to Category II shall be
calculated as the lesser of:
The Special Tax liability for Improvement Area C as determined by the
City, less the total revenue generated for all Parcels under Step 1 above,
divided by the total Acres for all Parcels within Improvement Area C
assigned to Category II,
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OR
The Maximum Special Tax rate for Parcels assigned to Category II.
Step 4: If the total revenue as calculated in Step 1 and 3 is less than the Special Tax liability,
for Improvement Area C, a Special Tax shall be levied upon each Parcel within
Improvement Area C classified as Category III. The Special Tax for Parcels assigned the
Category III shall be calculated as the lesser of:
The Special Tax liability for Improvement Area C as determined by the
City, less the total revenue generated for all Parcels under Step 1 and 3
above, divided by the total Acres for all Parcels within Improvement
Area C assigned to Category III,
OR
The Maximum Special Tax rate for Parcels assigned to Category III and
within Improvement Area C.
However, in the event it is determined that the Special Tax liability for Improvement Area
C includes delinquent Special Taxes from Parcel in Category III from the prior Fiscal Year,
the City shall determine the amount of delinquent taxes that arose from such Parcels and
identify the owner(s). The amount of delinquent Special Taxes, if any, that arose from the
applicable owner(s) shall first be divided by the total Categmy III Acres owned by such
owner(s) and collected from the applicable owner(s) with the remaining portion of the
Special Tax Liability not related to delinquent Special Taxes to be collected from all Parcels
in Category III according to the procedure set forth in the preceding paragraph.
Notwithstanding the above, under no circumstances will the Special Tax levied against any
Assessor's Parcel of Residential Property or Multi-Family Property for which an occupancy
permit for private residential use has been issued be increased by more than ten percent
annually up to the Maximum Special Tax as a consequence of delinquency or default by the
owner of any other Assessor's Parcel within Area C of the CFD.
E. APPEALS
Any landmvner or resident who pays the Special Tax and believes that the amount of the
Special Tax levied on their Assessor's Parcel is in error shall first consult with the CFD
Administrator regarding such error. If following such consultation, the CFD Administrator
determines that an error has occurred, the CFD Administrator may amend the amount of
the Special Tax levied on such Assessor's Parcel. If following such consultation and action, if
any, by the CFD Administrator, the landowner or resident believes such error still exists,
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such person may file a written notice with the City Clerk of the City appealing the amount of
the Special Tax levied on such Assessor's Parcel. Upon the receipt of any such notice, the
City Clerk shall forward a copy of such notice to the City Manager who shall establish as part
of the proceedings and administration of the CFD, a special three-member Review/Appeal
Committee. The Review/Appeal Committee may establish such procedures, as it deems
necessary to undertake the review of any such appeal. The Review/Appeal Cornrr>ittee shall
interpret this Rate and Method of Apportionment and make determinations relative to the
annual administration of the Special Tax and any landowner or resident appeals, as herein
specified. The decision of the Review/Appeal Committee shall be final and binding as to all
persons.
F. MANNER OF COLLECTION
Special Taxes levied pursuant to Section D above shall be collected in the same manner and
at the same nrne as ordinary ad valorem property taxes; provided, however, that the CFD
Administrator may directly bill the Special Tax, may collect Special Taxes at a different time
or in a different manner if necessary to meet the financial obligations of Area C of the cill
or as otherwise determined appropriate by the CFD Administrator.
G. TERM OF SPECIAL TAX
Taxable Property in Improvement Area C of the CFD shall remain subject to the Special
Tax in perpetuity.
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Attachment A
Description of Preserve Operations and Maintenance
Preserve Operations and Maintenance includes the maintenance, operation and management
of the public or private property within boundaries of the Otay Ranch Preserve, as such
boundaries may be modified from time to time, required by the Resource Management Plan
to be maintained as open space or habitat preservation land or both. Such maintenance,
operations and management shall include, but not be limited to, the following:
(i) Preserve Maintenance. Development, implementation and ongoing
provision of programs to maintain, operate and manage preserve
habitat values through: cultivation, irrigation, trimming, spraying,
fertilizing, and/or treatment of disease or injury; removal of
trimmings, rubbish, debris and other solid waste; maintenance of
trails; removal and control of exotic plant species (weeds); and
control of cowbirds through trapping.
(ii) Security. Development, implementation and ongoing provision of
security programs to: enforce I'no trespassing" rules; curtail activities
that degrade resources, such as grazing, shooting, and illegal
dumping; remove trash, litter, and other debris; control access;
prohibit off-road traffic; and maintain fences and trails.
(iii) Preserve unprovements: Acquire equipment and/ or install
improvements necessary to maintain, operate and manage the open
space and habitat preservation land described above.
The above description of the Preserve Operations and Maintenance is general in nature. The
actual maintenance, operations and management of the open space and habitat preservation
land within the Otay Ranch Preserve may be modified from time to time as necessary in
order to effectively provide such services in compliance with the requirements of the
Resource Management Plan.
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Attachment B
Description of Resource Monitoring
Implement the annual biota monitoring and reporting program consistent with the Resource
Management Plan to identify changes in the quality and quantity of preserve resources
including wildlife species, sensitive plants and sensitive habitat types.
The above description of the Resource Monitoring is general in nature. The actual
monitoring and reporting program may be modified from time to time as necessaJ.! in order
to effectively provide such services consistent vvith the requirements of the Resource
Management Plan.
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