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HomeMy WebLinkAboutReso 2007-009 RESOLUTION NO. 2007-009 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, ACTING AS THE LEGIS LA TIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT), MAKING CERTAIN DETERMINATIONS AND AUTHORIZING SUBMITTAL OF LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS OF CERTAIN TERRITORY, ANNEXATION NO.6 (OTAY RANCH VILLAGE TWO), PROPOSED TO BE ANNEXED TO SUCH COMMUNITY FACILITIES DISTRICT WHEREAS, the City Council of the City of Chula Vista (City Council), has previously declared its intention and held and conducted proceedings relating to the annexation of territory to an improvement area in an existing community facilities district pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982", being Chapter 2.5, Part I, Division 2, Title 5 of the Government Code of the State of California, and specifically Article 3.5 thereof (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 (Ordinance) (the Act and the Ordinance may be referred to collectively as the "Community Facilities District Law"). The existing Community Facilities District has been designated as Community Facilities District No. 97-2 (Preserve Maintenance District) (District) and the improvement area has been designated as Improvement Area "c" (Improvement Area 'C'); and WHEREAS, notice of a public hearing relating to the annexation of territory to Improvement Area "C," the extent of the territory to be annexed, the furnishing of certain public services and all other related matters has been given; and WHEREAS, the territory proposed to be annexed is known and designated as Community Facilities District No. 97-2 (Preserve Maintenance District), Improvement Area "C," Annexation No.6 (Territory); and WHEREAS, it has now been determined that written protests have not been received by 50% or more of the registered voters residing either within the Territory or Improvement Area "c" and/or property owners representing more than one-half (1/2) or more of the area of land within the Territory or within Improvement Area "C;" and WHEREAS, inasmuch as there have been less than twelve (12) persons registered to vote within the Territory for each of the 90 preceding days, this legislative body desires to submit the levy of the required special tax to the landowners of the Territory, said landowners being the qualified electors as authorized by law. Resolution No. 2007-009 Page 2 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City ofChula Vista as follows: SECTION 1. Recitals The above recitals are all true and correct. SECTION 2. Determinations It is determined by this City Council that: (a) all proceedings prior hereto were valid and taken in conformity with the requirements of law, and specifically the provisions of the Community Facilities District Law, and this finding is made pursuant to the provisions and authorization of Section 53325.1 of the Government Code of the State of California; (b) the annexation of the Territory to Improvement Area "C" of the District as proposed conforms with the City of Chula Vista Statement of Goals and Policies Regarding the Establishment of Community Facilities Districts; (c) less than twelve (12) registered voters have resided within the Territory for each of the ninety (90) days preceding the close of the public hearing and, consequently, the qualified electors shall be the landowners of the Territory and each landowner who is the owner of record as of the close of the public hearing, or the authorized representative thereof, shall have one vote for each acre or portion of an acre of land that she or he owns within the Territory; (d) the time limit specified by the Community Facilities District Law for conducting an election to submit the levy of the special taxes to the qualified electors of the Territory and the requirements for impartial analysis and ballot arguments have been waived with the unanimous consent of the qualified electors of the Territory; (e) the City Clerk, acting as the election official, has consented to conducting any required election on a date which is less than 125 days following the adoption of any resolution annexing the Territory to the District and Improvement Area "C" thereto; and (f) the public services proposed to be financed from the proceeds of special taxes to be levied within the Territory are necessary to meet increased demands placed upon the City as a result of development and/or rehabilitation occurring in the Territory. SECTION 3. Boundaries Of Annexed Area The boundaries and parcels of land of the Territory and in which the public services are to be provided and on which special taxes will be levied in order to pay the costs and expenses for such public services are generally described as follows: Resolution No. 2007-009 Page 3 All that property within the Territory proposed to be annexed to the District and Improvement Area "c" thereto, as such property is shown on a map as previously approved by this legislative body, such map designated by the number of the annexation and the name of the District, a copy of which is on file in the Office of the City Clerk and shall remain open for public inspection. A general description of the territory included in the District IS hereinafter described as follows: All that property and territory as originally included within and previously annexed to the District, as such property is shown on maps of the original District and territory previously annexed and approved by this City Council and designated by the name of the original District and Annexation Nos. I through 5. A copy of such maps are on file in the Office of the City Clerk and have also been filed in the Office of the County Recorder. SECTION 4. Description Of Services The services that are authorized to be financed from the proceeds of special taxes levied within Improvement Area "c" of the District are certain services which are in addition to those services provided in or required for the territory within Improvement Area "C" and will not be replacing services already available. A general description of the services authorized to be financed by Improvement Area "c" is as follows: The monitoring, maintenance, operation and management of public property in which the City has a property interest and which conforms to the requirements of the Ordinance or private property within the Otay Ranch Preserve which is required by the Preserve Owner/Manager to be maintained as open space or for habitat maintenance or both. Such property may be located outside the boundaries of the District and outside the jurisdictional boundaries of the City of Chula Vista. Such services shall not include the maintenance, operation and/or management of any property owned, maintained, operated and/or managed by the federal and/or state government as open space, habitat maintenance and/or for any other purpose. The District shall finance all direct, administrative and incidental annual costs and expenses necessary to provide such monitoring, maintenance, operation and management of such public property. The same types of services which are authorized to be financed by the District from the proceeds of special taxes levied within Improvement Area "C" are the types of services to be provided in the Territory. If and to the extent possible, such services shall be provided in common within Improvement Area "c" and the Territory. Resolution No. 2007-009 Page 4 Special Tax Except where funds are otherwise available, a special tax sufficient to pay for such services to be provided in the Territory, secured by recordation of a continuing lien against all non-exempt real property in the Territory will be levied annually within the boundaries of the Territory. For particulars as to the rate and method of apportionment of the proposed special tax, reference is made to the attached and incorporated Exhibit "A" which sets forth in sufficient detail the method of apportionment to allow each landowner or resident within the Territory to clearly estimate the maximum amount of the special tax that such person will have to pay. SECTION 5.The special taxes 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 City Council 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. SECTION 6. Election The proposition related to the levy of the special tax shall be submitted to the qualified electors of the Territory, said electors being the landowners, with each landowner having one (I) vote for each acre or portion thereof of land which he or she owns within said annexed territory. The special election shall be held on January 16,2007, and said election shall be a special election to be conducted by the City Clerk (hereinafter "Election Official"). If the proposition for the levy of the special tax receives the approval of more than two-thirds (2/3) of the votes cast on the proposition, the special tax may be levied as provided for in this Resolution. SECTION 7. Ballot The ballot proposal to be submitted to the qualified voters at the election shall generally be as follows: PROPOSITION A CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 97-2, IMPROVEMENT AREA "C" ANNEXATION NO.6 AUTHORIZATION FOR SPECIAL TAX LEVY Shall Community Facilities District No. 97-2 (Preserve Maintenance District) ("District") of the City of Chula Vista, subject to the accountability measures required pursuant to California Government Code Section 50075.1 and following, be authorized to levy special taxes within the territory identified as Annexation No.6 to Improvement Area "C" pursuant to the rate and method of apportionment of special taxes (the "Rate and Method") set forth in the "Resolution of the City Council of The City of Chula Vista, California, Acting As the Legislative Body of the District, declaring its intention to authorize the Annexation, Annexation No.6, ofterritory (Otay Ranch Village Two) to Community Facilities District No. 97-2 (Preserve Maintenance District) and Improvement Area "C" thereto and setting the public hearing to consider the authorization of said Annexation and authorizing submittal of levy of special taxes to qualified voters within said territory proposed to be annexed to Community Facilities District 97-2 (Preserve Maintenance District)" to finance the authorized services and administrative expenses and to fund and replenish a reserve fund, all as provided for in the Rate and Method? Resolution No. 2007-009 Page 5 SECTION 8. Vote The appropriate mark placed in the line before the word "YES" shall be counted in favor of the adoption of the proposition, and the appropriate mark placed in the line before the word "NO" in the manner as authorized, shall be counted against the adoption of said proposition. SECTION 9. Election Procedure This City Council hereby authorizes the Election Official to take any and all steps necessary for the holding of said election and ratifies any such steps previously taken by such Election Official which were necessary for the holding of such election. Said Election Official shall perform and render all services and proceedings incidental to and connected with the conduct of said election, and said services shall include, but not be limited to the following: (d) (e) (f) (g) (h) (i) (j) Prepared by (a) Prepare and furnish to the election officers necessary election supplies for the conduct of the election. (b) Cause to be printed the requisite number of official ballots, tally sheets and other necessary forms. (c) Furnish and address official ballots for the qualified electors of the District. Cause the official ballots to be mailed and/or delivered, as required by law. Receive the returns of the election. Sort and assemble the election material and supplies in preparation for the canvassing of the returns. Canvass the returns of the election. Furnish a tabulation of the number of votes given in the election. Make all arrangements and take the necessary steps to pay all costs of the election incurred as a result of services performed by the District and pay costs and expenses of all election officials. Conduct and handle all other matters relating to the proceedings and conduct of the election in the manner and form as required by law. Approved as to form by ~...d:::? c:?'O Scott Tulloch City Engineer ~\\\ \\ ,'{\ R \\\1~~ t , \ Ann Moore City Attorney Resolution No. 2007-009 Page 6 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 9th day of January 2007 by the following vote: AYES: Councilmembers: Castaneda, McCann, Ramirez, Rindone, and Cox NAYS: Councilmembers: None ABSENT: Councilmembers: None ATTEST: ~U:a;Bi;:~~~M~~~b P----' STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2007-009 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 9th day of January 2007. Executed this 9th day of January 2007. --: ?, u tu.'t ~. ~~ Susan Bigelow, MMC, City Cl Resolution No. 2007-009 Page 7 EXHIBIT A RATE AND METHOD OF ApPORTIONMENT CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 97-2 IMPROVEMENT AREA C ; ANNEXATlDN No.6 (OTAY RANCH VI '-'-AGE TWO) A Special Tax of Community Facilities District No. 97-7. (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 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 proVlsions hereof, shall be t"-"ed for the purposes, to the extent and in the manner herem provided. A. DEFINITIONS The terms herei..'1after set forth have the folloll.-ing meanings: "Acre or Acreage" means the land ate2 of an ...-\ssessor's Parcel as ShO'\\-Ll on an Assessorls Parcel Map, or if the land area is not shown on an ""'ssessor's Parcel Map, the land area shown on the applicable Final Subdivision lvIap, other final map, other parcel map, other condominium plan, or functionally equivalent map or instrument recorded in the: Office of the COl.lnty Recotder. The square footage of an },ssessor'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 Gove."llIDent Code of the State of California. "Administrative Expenses" means the actual or estimated costs incurred by the City, acring 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 amoant 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 eFD; the costs of collecting installments of the Special Tues; and any other costs required to administer Area e of the CFD as detenr.;ned by the City. "Assessor's Parcel" means a lot or parcel shown in an Assessor1s Parcel fvhp Vlith 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 II MuniFinancial Page 1 Resolution No. 2007-009 Page 8 structures not used as living space. "CFD Administrator" means an official of the City, or designee thereof, responsible for detemlining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD" means Community Facilities District No. 97-2 of the Gty 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 Dr her designee. "Community Purpose Facility Property" or "CPF Property" means all Assessor's Parcels which are classified as community purpDse facilities and meet the requiremen ts Df City of Chula Vista Ordinaoce No. 2883. "Council" means the Gty Council of the City of Chula Vista, acting as the legislative body Dfthe CFD. "County" means the County Df San Diego, California. "Developed Property" means all Taxable Property for which a building permit ",-as 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 Subrlivision Map, but which is not classified as Developed Property. "Final Subdivision Map" means a subrlivision of property creating residential or non- residential buildable lots by recordation of a final subrlivision map or parcel map pursuant to the Subrlivision Map Act (California Government Code Section 66410 et seq.), or recordation of a condominium plan pursuant to California Civil Code 1352, that creates inrlividual Jots for which building permits may be issued without further subrlivision and is recorded prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied. "Fiscal Year" means the period startingJuly 1 and ending on the following June 30. "Imptovement Area C" or "Area e" means Improvement Area C of the CFD, as identified on the boundary map fDr 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, determined in accordance with Section C below that may be levied in any Fiscal Yeaton any AssessDr's Parcel Df Tmble PrDperty. "Non-Residential Property" means all Assessor's Parcels of Developed Property for BMuniFlI1ancial Page 2 Resolution No. 2007-009 Page 9 which a building perrnit(s) has been issued for a structure or structures for non-residential lise. "Operating Fund" means a fund that shall be maintained ",-ithin 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 M.ainrenance Fund Requirement for the current Fiscal Year in which Special Taxes are levied. "Preserve Operations and Maintenance" means those activities described in Attachment l\. hereto which is incorpotated herein by this reference. "Preserve Operations and Maintenance Fund Requirement" means for any Fiscal Year an amount equal to the budgeted costs for Preserve Operations and Maintenance plus a pro- rata share of the budgeted Administrative Expenses of the District for the current Fiscal Year in which Special Taxes are levied. "Property Owner Association Property" means any propertywirhin the boundaries of Area C of the CFD that is owned by, or irrevocably dedicated as indicated in an inst.'ument recorded '\'vith the County Recorder to, a property o'Vmer association, including any master or sub-association. "Public Property" means any property within the boundaries of Area C of rhe CFD that is, at rhe 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, mainrenance and repair cost overruns and delinquencies in the payment of Special Taxes and a reasonable buffer to prevent large variations in annual Special T..'I: levies. "Reserve Fund Balance" means the amount of funds in the Reserve Fund at the end of the preceding Fiscal Year. "Reserve Fund Requirement" means an amount equal to up to 100% of the Operating Fund Requirement for any Fiscal Year. "Residential Property" means all Assessor's Parcels of Developed Property for which a building perrnit(s) has been issued for purposes of constructing one or more residential dwelling unit. "Resource Management Plan" means the Otay Ranch Phase 1 Resource Management II MuniRnancial Page 3 Resolution No. 2007-009 Page 10 Plan also referred to as "The Otay Ranch Resource Management Plan" dated October 28, 1993, and the Otay Ranch Phase 2, Resource J:..fanagement 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 ao 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 il.dministrative Expenses of the CFD for the current Fiscal Year in which Special Taxes are levied. Improvement Area C's "fair share" shall be based on Improvement Area C's percentage of the total acreage within the Otay Ranch General Development Plao Planning Area for which a Resource Monitoring Program funding mechanism has been established. "Special Tax" meaos 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 Requiremenr" means that amount required in any Fiscal Year for Area C to: (i) pay the Resource Monitoring Fund Requirement, and Preserve Operations aod Maintenance Fund Requirement, less the Operating Fund Balaoce, aod (iil pay any amounts required to establish or replenish the Reserve Fund to the Reserve Fund Requirement; (ii.i) pay for reasonably anticipated delinquent Special T...'Ces based on the delinquency rate for Special T...'Ces 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. III MuniFIIlaI1Cial Page 4 Resolution No. 2007-009 Page] ] E. 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 E'Cempt Developed Property, Final Map Property or Undeveloped Property, and shall be subject to Special Taxes p<.:.rsuant to Sections C and D below. Developed Property shall be further assigned to a Land Use Chss as specified in Table 1. C. MAXIMUM SPECIAL TAX RATE CATEGORY I Category I includes Developed Property ",ithin the District ("Category 1''). The M""'Cimum Special Tax for Resource Monitoring, ""'1d Preserve Operations and Maintemnce 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 sruill be levied based on Acreage. TABLE 1 MAXIMUM SPECIAL TAX FOR CATEGORY I COMMUNITY FACILITIES DISTRICT No. 97-2 I MPROVEMENT AREA C (FISCAL YEAR 2006-2007) Description Resource Operation & Total Monitoring IvIaintenance Residential $0.0062 SQ ft $0.00991 sq ft $0.0162/sq ft Non- $101.1797/acre $160.6303/acre $261.81/acre Residential CATEGORY II Category II includes each :\ssessor's Parcel of Taxable Property ",~thin the District for which a Final Nlap has been recorded, but which is not classified as a Developed Parcel ("Category II''). The Ma..'Cimum Special Tax fot 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). II MuniFlf1aTlCial Page 5 Resolution No. 2007-009 Page 12 TABLE 2 MAXIMUM SPECIAL TAX FOR CATEGORY II COMMUNITY FACILITIES DISTRICT No. 97-2 IMPROVEMENT AREA C (FISCAL YEAR 2006-200:7) Resource Operation & Total Monitoring Maintenance $101.1797/acre $l60.6303/acre $261.81/acre CATEGORY III Categcry III includes each Parcel of T uable Property within the District not subject tD Special Ta.:< under any Dther categDry ("CategDry ITI"). The Ma.-cimum Special Ta.'I: apprDved for Fiscal Year 2006-2007 on Ta.'l:able Property within Category lIT is the rate set forth in Table 3 below (said amount to be levied pro rata for any pDrtion of an Acre). TABLE 3 MAXIMUM SPECIAL TAX FOR CATEGORY III COMMUNITY FACILITIES DISTRICT No. 97-2 I MPROVEMENT AREA C (FISCAL YEAR 2006-2007) Resource Operation & TDtal Monitoring Maintenance $6j.3004/ acre $l036696/acre $168.97/ acre EXEMPT CATEGORY The Exempt Category includes each property owned, conveyed or irrevocably offered for dedication to a public agency, or land which is in the public right-of-way, unmanned utility easements which make utilization for other than the purpose set forth in the easement impractical, common areas, private streets and parks, and open space lots ("Exempt Category"). . MuniFU1ancial Page 6 Resolution No. 2007-009 Page 13 SPECIAL CASES In some instMces an Assessor's Parcel of Developed Property may contain more than one Land Use Class and be considered" Special Case". The LYfaximum Special Ta..."{ that may be levied on an Assessor's Parcel identified as Special Case shall 1;>e the swn of the Maximum Special T...'{ levies that may be levied on all Land 1-: se C1ass"s located on that -",ssessor's Parcel. The crn i\.dmin.istrator shall determine the allocation to each Land Dse Class. fu"1NUAL ESCALATION OF MAxrMUM SPECIAL TA..X The M...'<imum Special Tax as shown in the tables above that may be levied on each Assessor's Parcel in.'\.rea C, .Annexation No.6 (Otay Ranch Village Two), shall be increased each Fiscal Year beginning in Fiscal Year 2007-2008 and thereafrer by a factor equal to the annual percentage change in the San Diego Metropolitan Area all Urban Conswner Price Inde:.: (.'\.ll 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 (0 lay Ranch Village Two), Special Tu 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 Ta.."'C per Building Square Foot for Resource Monitoring, and Preserve Operations and Maintenance for Parcels and adding to that the maximwn revenue which could be generated by multiplying the total acres for Parcels classified as Non-Residential Parcels by the Ma..'<imum Special T...'{ 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 Ta..'{ Liability for Improvement Area C, a Special T a..'{ 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 Tu Liability for Improvement Area C as dete=ined by the City, less the total revenue generated for all Parcels under Step 1 above, divided by the total Acres for all Parcels "'~thin Improvement A"ea C assigned to Category II, II MuniFlf1anciaJ Page 7 Resolution No. 2007-009 Page 14 OR The Maximum Special Tax rate for Parcels assigned to Category II. Step 4: If the total revenue as calcuhted in Step 1 md 3 is less ihan the Special Tax Liability, for Improvement luea 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 Ta.'"{ rate for Parcels assigned to Category III and within Improvement Area C. However, in the event it is determined that the Special Tax Liability fot Improvement Area C includes delinquent Special Taxes from Parcel in Category III from the prior Fiscal Year, the City shall determine the amount of delinquent taxes that arose from such Parcels and identify the owner(s). The amount of delinquent Special Taxes, if any, that arose from the applicable owner(s) shall first be divided by the total Category III Acres owned by such owner(s) and collected from the applicable owner(s) with the remaining portion of the Special Tax 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 l\ssessor'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 T a.'"{ 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 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 =or. If following such consultation, the CFD Administrator determines that an =or has occurred, the CFD l,dministrator may amend the amount of the Special Ta.'"{ 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, II MuniRnancial Page 8 Resolution No. 2007-009 Page 15 such person may @e a written notice with the City Clerk of the City appeal.ing the amount of the Special Tax levied on such Assessor's Parcel. l'pon the receipt of any such notice, the City Clerk shall forward a copy of such notice to the City iYIanager who shall establish as pan of the proceedings and administration of the crn, a special three-member Review! Appeal Committee. The Revlew / 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 Apponionrnenr and make dererminations 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 DF CDLLECTIDN Special Taxes levied pursuant to Section D above shall be collected in the same manner and at the same time as ordinary ad vawrem properry taxes; provided, however, that the crn Administrator may directly bill the Special Ta.:" may collect Special Ta.."tes at a different time or in a different manner if necessary to meer the financial obligations of Area C of the CFD or as othe['\vise determined appropriate by the crn AdministratOr. G. TERM DF SPECIAL TAX Taxable Property in Improvement AIea C of the crn shall remain subject to the Special Ta."t in perpetuity. Ii MuniFinancial Page 9 Resolution No. 2007-009 Page 16 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 !vfanagement 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! Dr 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 ~Ino 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. (ill.) Preserve improvements: Acquire equipment and! or install improvements necessary to maintain, operate and manage the open space and habitat preservation land described above. The above deseription 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. III MuniFIJ1anda1 Page 10 Resolution No. 2007-009 Page 17 Attachment B Description of Resource Monitoring Implemenr the annu.u biota monitoring and reporti."'1g program consistent \Vith the Resource Management Plan to identlfy changes in the quality and qu~ntity of preserve resources including 'Wildlife species, sensitive plants and sensitive habitat types. The above description of the Resource Nlonitoring .is general hJ. nature. The act-.1al monitoring and reporting program may be modified from time to time as necessary in order to effectively provide such services consistent \.vi.th the requirements of the Resource i'vIanagemem Plan. II MuniFIt1ancia1 Page 11