HomeMy WebLinkAboutOrd 1999-2795ORDINANCE NO. 2795
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA, CALIFORNIA, ACTING AS THE LEGISLATIVE
BODY OF COMMUNITY FACILITIES DISTRICT NO. 99-1
(OTAY RANCH SPA ONE - PORTIONS OF VILLAGE ONE,
VILLAGE FIVE AND VILLAGE ONE WEST) AUTHORIZING
THE LEVY OF A SPECIAL TAX IN SUCH COMMUNITY
FACILITIES DISTRICT
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 tax in a community
facilities district, all as authorized pursuant to the terms and provisions of the "Mello-Roos
Community Facilities Act of 1982," being Chapter 2.5, Pan 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 designated as COMMUNITY FACILITIES DISTRICT NO. 99-1
(Otay Ranch Spa One - Portions of Village One, Village Five and Village One West) (the "District").
The City Council of the City of Chula Vista, acting as the legislative body of Community
Facilities District No. 99-1 (Otay Ranch Spa One - Portions of Village One, Village Five and Village
One West), does hereby ordain as follows:
SECTION I. This City Council does, by the passage ofthis ordinance, authorize the levy ofspecial
taxes pursuant to the Rate and Method of Apportionment of Special Taxes as set forth in Exhibit "A"
(the "Special Tax Formula"), referenced and incorporated. herein, on file in the office of the City
Clerk.
SECTION 2. This City Council, acting as the legislative body of the District, is hereby further
authorized, by Resolution, to annually determine the special tax to be levied t~r the then current tax
year or future tax years, except that the special tax to be levied shall not exceed the maximum special
tax calculated pursuant to the Special Tax Formula, 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 valorera property taxes and shall be subject to the same penalties, procedure, sale
and lien priority in any case of delinquency as applicable tbr ad valorera taxes; provided, however,
the District may utilize a direct billing procedure for any special taxes tbat 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 tax shall be secured by the lien imposed pursuant to Sections 3114.5 and
3115.5 of the Streets and Highways Code of tile 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
Ordinance 2795 Ordinance 2795
Page 2 Page 2
and effect until the special tax obligation is prepaid, permanently satisfied and canceled in accordance
with Section 53344 of the Government Code of the State of Cali/brnia 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 days after its adoption. Within fifteen 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.
Presented by
Approved as to form
J n P. Lippi!/qT'j/~
P~ks Director
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California,
this 14th day of September, 1999, by the fbllowing vote:
AYES: Councilmembers: Davis. Padilia. Salas and Horton
NAYS: Councilmembers: None
ABSENT: Councihncmbcrs: Moot
ATTEST:
Shir~or'~'~
Susan Bigelow. City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Susan Bigelow. City Clerk of Chula Vista, California, do hcrcby certify that the foregoiog Ordinance
No,2795 had its first reading at a regular meeting held on the 31st day of August. 1999, and its second reading
and adoption at a regular meeting of said City Council held on the 14th day of September, 1999.
Executed this 14'h day of September~ 1999.
Susan Bigcloxv. City Clerk
EXHIBIT A
COMMUNITY FACILITIES DISTRICT
SPECIAL TAX REPORT
MELLO-ROOS COMIvIUN1TY FACILITIES ACT OF 1982
COMMUNITY FACILITIES DISTRICT
NO. 99-10TAY RANCH SPA ONE - PORTIONS OF VILLAGE ONE,
VILLAGE FIVE AND VILLAGE ONE WEST
The City of Chula Vista
476 Fourth Avenue
Chula Vista, California 91910
MeGill Martin Serf, Inc.
310 Third Avenue, Suite C-5
Chula Vista, California 91910
August17,1999
TABLE OF CONTENTS
Page
L INTRODUUrlON ............................................................................... 1
IL PROJECTDESCRIFrlON ..................................................................... 2
IlL DESCRHrrlON AND ES's'~VlATED COST Oi~ PRO!~OSED FACILITw, S ..................... 3
A. Description of Proposed Public Improvements ................................. 3
B. Estimated Cost of proposed Public Improvements .............................. 4
IV'. BONDED INDEBTEDNESS AND INCIDENTAL EXPENSES .................................... 5
/k Projected Boned Sales ............................................................... 5
B. Incidental Bond Issuance Expenses to be Included in the Proposed Bonded
Indebtedness ........................................................................ 5
C. Incidental Expenses to be Included in the Annual Levy of Special Taxes ... 5
V. RATE AND N'IETHOD OF APPO RTIONMENT OF-rlt~ SPECIAL TAX ....................... 6
A. Explanation for Special Tax Apportionment .................................... 6
B. Maximum Annual Special Tax Rams ............................................ 7
C. Backup Special Tax ................................................................8
D. Aeeumey of Information ..........................................................8
VL BOUNDARIES OF COMMUNITY FACILITIES Dt~TRICT ................................... 9
VIL GENERAL TERMS AND CONDITIONS ....................................................... 10
A. Substitution Facilities ..............................................................10
B. Appeals ..............................................................................I0
EXB~RITS
Exhibit A
Exhibit B
Exhibit C
Exhibit D
Rate and Method of Apportionment
Assigned Maximum Special Tax Rates for Developed Property
Maximum Special Tax Rates for Undeveloped and Taxable Property
Owner Association Property
Boundary Map
INTRODUurlON
WHEREAS, the City of Chula Vista did, punamnt to the provision of the Mello-Roos
Comm~lity FBCj]ities A~t of 19~2, being ChalY~r ZS, Part 1, Division 2, Title 5 of the
Government Code of ~e Stat~ of California (hereinnfter referred to as the "ACt"), and
sl~i~cally Section 53321,5 thereof, expressly order the filing of a written "Report" with the
legislalive body of the proposed Community Facilities District. This Community Facilities
District being Commlmit~ Facilities District No. 99-1 (Otay Ranch SPA One - Portions of
Village One, Village Five and Village One West) shall herei,nPter be referred to as:
· 'CFDIxlo. 99-1"; and
WHEREAS, the Resolution Ordering and Directing the Preparation of a Report for Proposed
Commullity Facilities District No. 99-1 did direct that said Report generally contain the
following:
FACILITIES:
A full and complete description of the public facilities the acquisition of
which is proposed to be financed through the CFD.
COST ESTIMATE: A general cost estimate sctting forth costs of acquiring such facilities.
SPECIAL TAX:
Further particulars and documentation regarding the rate and method of
apportiomem for the authorized special tax.
NOW, Tt-I~REFORE, I, John Lippitt P.E., the Director of Public Works of the City of Chula
Vista, and the appointed respons~le officer directed to prepare this Special Tax Report or cause
the Report to be prepared pursuant to the provisions of the Act, do hereby submit thin Report.
Commum .ty Faciltaes District No. 99-1 Page 1
Otay Ranch SPA one - Poraons of [,'illage One. F~llage Five and Fillage One West August 1Z 1999
H. PROJECT DESCRIFrlON
CFD No.99-1 encompasses approximately 978 gross acres of land located m the portion of the
south San Diego City of Chula Vista known as Otay Ranch Of this acreage, approximately 660
acres are expected to be developed. At buildout, it is expected that CFD No.99-1 will consist of
approximately 2,705 Single Family Residences, 1,352 Muitifamily Residences, 8.1 Acres of
Commercial Uses, and 10.7 Acres of Community Purpose Facilities (chm'ches, daycare, etc.).
The combined Single Family and Multifamily Uses are anticipated to generate 7,465,067 square
feet of residential building square footage. The Commertiltl, Commtmlty Ptlrpo$e Facility
Property and Taxable Homeowner Association (HOA) Parcels m anticipated to generate 18.8
net laxable acreage.
CFD No.99-1 (Otay Ranch SPA One - Portions of Village One, Village Five and Village One
West) is also divided into the following three zones:
· Zone A: applies only to Developed Property, and means a specific geographic location
known as the Village One area as depicted on Exhibit D;
· Zone B: applies only to Developed Property, and means a specific geographic location
known as the Village Five area as depicted on Exhibit D; and
· Zone C: applies only to Developed Property, and me~n~ a specific geographic location
known as the Village One West area as depicted on Exhibit D;
Table 1, below, summarizes the mount of improved residential building square footage, number
of units and net taxable Commercial and Community Purpose Facility Property expected at
buildout of CFD No.99-1 (Otay Ranch SPA One - Portions of Village One, Village Five and
Village One West), by zone.
TABLE 1
CATEGORY SQUARE FEET OF NUlvlBER OF NUIvIBER OF
RESIDENTIAL UNITS ACRES
FLOOR AREA
ZONE A: VILLAGE ONE 3,495,399 2,268 14.1
ZONE B: VILLAGE FIVE 2,038,513 1,036 I 4.7
ZONE B: VII.I.AGE FIVE 1,931,155 753 I 0
CFD No. 99-1 allows for the future annexation of parcels as depicted on Exhibit D (Future
Annexation Parcels). The area within the Future Annexation Parcels encompasses
approximately 36 gross acres. At buildout, it is expected that the Future Annexation Parcels, if
and when annexed into CFD No. 99-1, would include approximately 154 single family
;~sidences.
Community. Facilitia Disttlcr No. 99-1 Page 2
Otav Ran& SPA One- Partions of I~llage One, F~llage Five and V'dlage One West Artgrist 8, 1999
D~IiON ,,LND E~STLrVlATED COST OF PROPOSED FACILrrU~
DeseriOfion of Pronosed Public Improvements
A community facilities district may provide for the purchase, construction, expansion, or
rehabilitation of any real or tangible property, including public facilities and
infraslructtlre i~provements with all eStim~ed useful life of five (5) years or longer,
which is necessary to meet increased demands placed upon local agencies as a result of
development or rehabilitation oeearfing within the eol~mnnil~J flteilities dislriet In
addition, a community facilities dislxiet may pay in full all amo~mt~ necessary to
eliminate any fixed sp~ial assessment liens or to pay, repay, or defease any obligation to
pay or any indebtedness seemed by any tax, fee, charge, or assessment levied within the
area of the community facilities district.
The facilities described in this Report are all facilities which the legislative body creating
CFD No.99-1 is authorized to own, consm~ or finance, and which are required, in pan,
to adequately meet the needs of CFD No.99-1. In addition, the facilities meet the criteria
for authorized public facilities set forth in the City's Statement of Goals and Policies
regarding the establishment of Community Facilities Districts. The actual facilities
described herein are those currently expected to be required to adequately meet, in part,
the needs of CFD No.99-1. Became the actual needs of CFD No.99-1 arising as
development progresses thereto may differ fxom those cm'rently anticipated, CFD No.99-
1 reserves the fight to modify the actual faeilines proposed herein to the extent CFD
No.99-1 deem necessary, in its sole discretion to meet those needs. The Special Taxes~
required to pay for the conelion or f[nnncillg Of said facilities will be apportioned as
described in the Rate and Method of Apportionment of the Special Tax for CFD No.99-I
(Otay Ranch SPA One - Portions of Village One, Village Five and Village One West)
(see Exhibit A).
Proceeds of the proposed bonded indebtedness of CFD No. 99-1 will be used to finance
backbone streets and associated improvements (i.e., grading, sewer, streets, landscaping,
utilities, etc.), public facilities DIF Improvements, and pedesUian bridges. Following is a
general description of the proposed facilities:
· Olympic Parkway Phases 1 and 2
· Paseo Ranthero Phase 2
· East Palomar within Village One West
· Easl Palomar within Village Five
: Please note that all ctrpitalized terms used herein, unless otherwise indicate~ shall have the meanings defined in
the Rate and Method of Apportionment prepared for CFD No. 99-1.
Community, Facilitie~ Distria Nt~ 99-1 Page 3
Ot .ay Ranch SPA One - Portions of Fillage One, Fillage Five and Vdlage One West August 17, 1999
· Those facilities to be financed from the proceeds of Public Facilities Development
Impact Fees, payable as a condition of development of property within CFD
No.99-1
· Those fa~ffities to be financed from the pl'oceeds of Pedestrian Bticlgcs
Development Impact Fees, payable as a condition of development of property
within CFD NO.99-1
· Slope Landscaping
· Enviro,--ental Mitigation Costs for Olympic Parkway
Estimated Cost of Proposed Public Improvements
The facilities and the estimated costs herein are subject to review and confirmation. The
costs listed in Table 2, are estimates only, based upon current con~huction and land costs
and actual costs may differ from those estimates herein Based on the current CFD
No.99-1 bond sizing estimate of approximately $39.5 million, only a portion of these
costs are expected to be financed with CFD bond proceeds.
TABLE 2
Fae~ities Imnrovements
Olympic Parkway Phase 1
Olympic Parkway Phase 2
Paseo Ranchera Phase 2
Palomar (Vffiage One West)
Palomar (Village Five)
Slope Landscaping
Public Facilities Development Impact Fees
Pedestrian Bridge Impact Fees
Total Estimated Cost
$ 35.2 Million
$ 5.4 Million
$ 4.3 Million
$ 4.5 Million
$ 2.0 Million
$ 5.0 MiHion
$ 8.1 Million
$ 1.3 Million
Community Fadlit~ D~tia No. 99-1 Page 4
Otav Ranch SPA One - Portions o[ V~lla~e On~ FillaCe Five and ltdlaJle One West August 8, 1999
BONDED INDEBTEDNESS AND INCIDENTAL EXPENSES
Project Bond Sales
The current bond mount estimated for CFD No. 99-1 is $60 million (exclusive of the
Future Annexation Parcels), and it is anticipated that a single bond will be issued. The
bonds issued by CFD No.99-1 will meet the trams and conditions of special tax bonds set
forth in the City's Statement of Goals and Policies Regarding the Establishment of
Community Facilities ,Districts.
Incidental Bond Issuance Exnenses to be Included in the Proposed Bonded
Indebtedness
Pursuant to Section 53345.3 of the Act, bonded indebtedness may include all costs and
estimated costs incidental to, or connected with, the accomplishment of the purpose for
which the proposed debt is to be incurred, including, but not limited to, the costs of legal,
fiscal, and financial consultant fees; bond and other reserve funds; discount fees; interest
on any bonds of the dislxict due and payable prior to the expiration of one year from the
date of completion of the facilities, not to exceed two years; election costs; and all costs
of issuance of the bonds, includinF, but not limited to, fees for bond counsel, costs of
obtaining credit ratings, bond insurance preminm~, fees for letters of credit, other credit
enhancement costs, printing costs, and those Administrative Costs as defined by Exhibit
A. For the bonds proposed to be issued by CFD No.99-1, capitalized interest is estimated
to be capi~aliTed for one year. The reserve fund is estimated to be the maximum
allowable under Federal Tax Law. All other incidental bond issuance expenses is
estimated at 4 percent of the face amount of the bonds.
Incidental Exnenses to be Included in the Annual Lew of Suecial Taxes
Pursuant to Section 53340 of the Act, the proceeds ofuny special lax may only be used to
pay, in whole or part, the cost of providing public facilities, services and incidental
expenses. As defined by the Act, incidental expenses include, but are not limited to, the
cost of planning and desiring public facilities to be financed, including the cost of
environmental evaluations of those facilities; the costs associated with the creation of the
district, issuance of bonds, determination of the mount of taxes, collection of taxes,
paymere of taxes, or costs otherwise incurred in order to carry out the authorized
purposes of the district; any other expenses incidental to the construction, completion,
and inspection of the authorized work; and the retirement of existing bonded
indebtedness. While the actual cost of administering CFD No.99-1 may vary, the
currently budgeted mount of special taxes which can be collected is $125,000 in annual
administrative expenses prior to buildout of the project and $75,000 per year subsequent
to buildout The actual cost will likely change over the life of the district Therefore the
administrative budget for CFD No. 99-I will be set each year, and could be more than the
current budget.
Community, Facilltieg Di~tr~ No. 99-1 Page 5
Otay Ranch SPA One - Portions of Village On~ Village Five and Village One FFe~I August 17, 1999
V. RATE AND METHOD OF APPORTIONMENT OF ~ SPECIAL TAX
All of the property located within ~ No.99-1, unless exempted by law, shall be taxed for the
purpose of providing necessary facilities to serve CFD No.99-1. Puxsuam to Section 53325.3 of
the Act, the tax/reposed "is a Spec/al Tax and not a special assessment, and there is no
requirement that the tax be apportioned on the basis of benefit to any property." The Special Tax
"may be based on benefit received by parcels of real property, the cost of making facilities or
authorized services available to each parcel or other reasonable basis as tL-'lea,,,ined by the
legislative body," although the Special Tax may not be apportioned on an ad valorera basis
pursuant to Article XlllA of the California Constitmion.
As shown in Exhibit A, the mended Rate and Method of Apportionment provides information
sufficient to allow each proplrty owner within CFD No.99-1 to estimate the maximum annual
Special Tax he or she will be required to pay. Sections A thronp C, below, provide additional
information on the Rate and Method of Apportionment of the Special Tax for CFD 99-1.
A. Exnlana~on for Snecial Tax Al~nortionment
When a commumty facilities district is formed, a Special Tax may be levied on each
parcel of taxable property within the CFD to pay for the construction, acquisition and
rehabilitation of public facilities, to pay for authorized services or to repay bonded
indebtedness or other related expenses incurred by CFD No.99-1. This Special Tax mast
be apportioned in a reasonable manner;, however, the tax may not be appertioned on an ad
valorera basis.
When more than one type of land ase is present within a community facilities district,
several criteria my be considered when apportioning the Special Tax. Generally, criteria
based on building square footage, acreage, and land ase are selected, and categories based
on such criteria are established to differentiate between parcels of property. These
categories are a direct restfit of the developer' s projected product mix, and are reflective
of the proposed land use types within that commuRily facilities district. Specific Special
Tax levels are assigned to each land ase class, with all parcels within a land ase class
assigned the same Special Tax rate.
The Act does not require the Special Taxes to be apportioned to individual parcels based
on benefit received. However, in order to insure fairness and equity, benefit principles
have been incorporated in establishing the Special Tax rates for CFD No.99-I.
The major assumption inherent in the Special Taxes rates set forth in the Rate and
Method of Apportionment is that the level of benefit received from the proposed public
improvements is a function land use. This assumption is borne out through an
exam/nation of commonly accepted statistical measures.
For example, in measuring average weekday vehicle trip-ends, the Institute of
Transportation Engineer' s 1995 Trip Generation report identifies land use as the primary
determinant of trip-end magnitude. Commercial land uses typically generate more trip-
ends than do single family residential land ase. Similarly, larger single family detached
Community F,,_.dlhles Dira-k~ No. 99-1 Page 6
Otto., Ranch SPA Ot~e- Plfaon~ of F~llage One, Fdlage Fn, e and Fdlage One West Augst$t 8, 1999
dwellings typically generate a greater number of trip-ends than do smaller single family
detached homes, and therefore, will tend to received more benefit from road grading
road landscaping and road improvements.
DminaLge and flood control requirements generally vary with the mount of impervious
ground cover per parcel. It follows that larger homes which have morn impervious
ground cover will create relatively more draina~e flOW ~ slllaller homes.
CFD No.99-1 (Omy Ranch SPA One - Portions of Village One, Village Five and Village
One West) is divided into tkn~ district zones, described as:
Zone A: applies only to Developed Property, and means a specific geographic
location known as the Village One area_
Zone B: applies only to Developed Property, and means a specific geographic
location known as the Village Five area; and
Zone C: applies only to Developed Property, and means a specific geographic
location known as the Village One West area.
Four Land Use Class Categories of Taxation have been established for CFD No.99-1.
The categories are defined as follows:
Residential Developed Parcels (single and multifamily residences) are taxed on the
square footage of the building;
Non-Residential Developed Parcels are taxed based on acreage of the parcel;
The Undeveloped Property Category includes all the parcels for which a building
permit has not been issue& The tax on Undeveloped Property is based on the total
acreage of the parcel; and
The Taxable Property Owners Association Property Parcels are taxed based on the
acreage of the parcel, the same as Undeveloped Property.
Based on the types of public facilities that are proposed for CFD No.99-1 and the factors
described above, the Special Taxes assigned to specific land uses are generally
proportionate to the relative benefits received by them, and, accordingly, the Special
Taxes in CFD No. 99-1 can be considered fair and reasonable.
Maximum Annual Soeciai Tax Rates
Exhibit B lists the Maximum Annual Special Tax rates that may be levied in each zone,
against Residential Property, Commercial Property and Community Purpose Facility
Property within CFD No.99-1. Exhibit C lists the Maximum Special Tax Rates for
Undeveloped Property and Taxable Property Owner Association Property within CFD
No.99-1. Any Future Annexation Parcels that annex into CFD No. 99-1 will be subject
to the Maximum Special Tax Rates specified in Exhibits B and C, and the Backup
Special Tax (described below) of the applicable zone within which suck Future
Annexation Parcel is located and its applicable land use category.
Community Facilities Distria No. 99-1 Page 7
Otay. Ranch SPA One - Portions of rdlage On¢ Wdlage Five and F'dlage One West August 17, 1999
The City Cotmcil will annually determine the actual mount of the Special Tax levy
based on the method described m Exhibit A and subject to the maximum Special Tax
rates contained in Exhibit B and Exhibit C. The City will levy a Special Tax to the extent
necessary, sufficient 1o meet the Special Tax Requirement.
Baclmu Soecial Tax
Payment of a one-time Backup Special Tax tony be requinut prior to-the issuance of
building permits or recordation of a final map. Tables 4, 5, and 6 in Exhibit A identifies
the amount of Special Tax revenue and development that is currently expected from each
planmug arem fithe CFD Administrator determines that the Special Tax revenue for a
planning area will be reduced as a resttit of a reduction in the expected humhot of units,
acres, or building square feet in such planning area, then a Backup Special Tax payment
will be requirecL Upon annexation of Future Annexation Parcels w/thin CFD No. 99-1,
Tables 5 and/or 6 will be modified to include relevant land use information pursuant to
the procedure described in Exhibit A.
The amount of the Backup Special Tax payment will be calculated pursuant to Section E
of Exhibit A.
Accuracy of Information
In order to establish the Maximum Annual Special Tax rates and the Backup Special Tax
as set forth in the Rate and method of Apportionment for CFD 99-1, MeGill Martin Self,
Inc. has relied on informalion including, but not limited to absoxl3tion, land-use types,
building square footage, and net taxable acreage which were provided to Me, Gill Martin
Self, Inc. by others. McCxill Martin Self, Inc. has not independently verified such data
and disclaims responsibility for the impact of inaccurate data provided by others, ff any,
on the Rate and Method of Apportionment for CFD 99-I, including the inability to meet
the financial obligations of CFD 99-1.
Community Faciliaes BisV/ict No. 99-1 Page 8
Otav Ranch .SPA One - Portions of Nilage One, Nilage Five and V'tllage One IFe~i August & 1999
VI. BOUNDARIES OF COMMUNITY FACIIJTIES DISTRICT
The boundaries of CFD No.99-1 include all land on which the Special Taxes my be levied. A
map of the area included within CFD N0.99-1 is provided as Exhibit D. Future Annexation
Parcels of CFD No. 99-1 have also been identified on Exhibit D.
Community Fo~;I;tin Dixtria No. 99-1 Page 9
Otay. Ranch SPA One - Ponlons of lqllage One, FZIlage Five and lallage One West August 17, 1999
A.
GENERAL TERMS AND CONDITIONS
Substitution Facilities
The description of the public facilities, as set forth herein, are general in their nature. The
final ~ture and localion of improvements and facilities will be lietel-mined lipon the
preparation of final plans and specifications. The final plans may show sub~iiiutes, in
lieu or modi~c~lions to the proposed work in order to accomplish the work of
improvement, and any such substitution shall not be a dmge or modification in the
~gs as long as the facilities provide a service and are of a type substantially
similar to that as set forth in this Report.
Appeals
Any landowner who feels that the mount of the Special Tax is in error may file a notice
with CFD 99-1, appealing the levy of the Special Tax pursuam to the procedure specified
in Exhibit A. As appropriate, a representative of CFD No.99-1 will then review the
appeal and, ff necessary, meet with the applicant. If the findings of the representative
verify that the mount of the Special Tax should be modified or changed, then, as
appropriate, the Special Tax levy shah be corrected.
Community Fal DisPia No. 991 Page 10
Ot .ay Rtmch SPA One ~ Portions of Hllage On~ F'tllage l~ve and HOage One West August & 1999
EXIIIRIT A
CITY OF CHULA VISTA
COMMUNITY FACILYrIES DISTRICT NO. 99-1
(Otay Ranch SPA One - Portions of Village One, Village Five and Village One West)
RATE AND METHOD OF APPORTIONMENT
CITY OF CHULA VISTA
COMMUNITY FACILITIES DISTRICT NO. 99-1
(OTAY RANCH SPA ONE -
PORTIONS OF VILLAGE ONE, VILI,AGE FIVE AND VILt,AGE ONE WEST)
RATE AND METHOD OF APPORTIONMENT
OF SPECIAL TAX
A Special Tax as beminafter defined shall be levied on all Taxable Property within the City of
Chula Vista Community Facilities District No. 99-1 ("CFD No. 99-1 ") and collected each Fiscal
Year commencing m Fiscal Year 2000-2001, in an mount determined by the City Council
through the application of the~tpprup~ate Special Tax for "Developed Properly", "Taxable
Property Owner Association Property", and "Undeveloped Property" as described below. All of
the real property in CFD No. 99~1, unless exempted by law or by the provisions hereof, shall be
taxed for the purposes, to the extent and m the manner heroin provided.
A. DEFINITIONS
The terms heremafter set forth have the following meanings:
"Acre or Acreage" means the land area of an Assessors Parcel as shown on an Assessor's
Parcel Map, or if the land area is not shown on an Assessors Parcel Map, the land area
shown on the applicable final map, parcel map, condomin/nm plan, record of survey, or other
recorded document creating or describing the parcel. If the preceding maps are not available,
the Acreage Shall be determined by the City Engineer.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter
2.5, Division 2 of Title 5 of the Government Code of the State of California~
"Administrative Expenses" means the following actual or reasonable estimated costs
directly related to the adminislration of CFD No. 99-1, including but not limited to, the
following: the costs of computing the Special Taxes and preparing the annual Special Tax
collection schedules (whether by the City or designee therefor both); the costs of collecting
the Special Taxes (whether by the County, the City, or otherwise); the costs of remitting the
Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the
discharge of the duties required of it under the Indentme; the costs to the City, CFD No. 99-1
or any designee thereof of complying with arbitrage rebate requirements; the costs to the
City, CFD No. 99-1 or any designee thereof of complying with City, CFD No. 99-I or
obligated persons disclosure requiremems associated with applicable federal and state
securities laws and of the Act; the costs associated with preparing Special Tax disclosure
statements and r~sponding to public inquiries regarding the Special Taxes; the costs of the
City, CFD No. 99-1 or any designee therenf related to an appeal of the Special Tax; the costs
of any credi, enhancement obtained by the City or CFD No. 99-1 (but excluding the costs of
C i~ of Chula Vista August 17. 1999
Communi(F Facilities District No. 99-1 Page I
any credit enhancemere required to be provided by the Master Developer or any other owner
of property within CFD 99-1), and the co~ts associated with the release of funds from an
escrow account, if any. Adminislrative Expenses shall also include amounts estimated or
advanced by the City or CFD No. 99-1 for any other administrative purposes of CFD No. 99-
l, including attomey's fees and other costs miated to commencing and pursuing to
completion any foreclosure of delinquent Special Taxes.
"Annexation Parcels" means those specific Assesser's Parcels that are subject to future
annexation into CFD No. 99-1 as depicted in Exhibit B attached herei~ Any Annexation
Parcels that annex to CFD No. 99-1 will be subject to the Maximum Annual Special Tax and
the Backup Special Tax of the zone of CFD 99-1 within which such Annexation Parcel is
located and the appropriate land use category of CFD No. 99-1 to which such Annexation
Parcel.
"Assessor's Parcel" means a lot or parcel shown in an Assessoes Parcel Map with an
assigned Assessor's Parcel number.
"Assessor's Parcel Map" means an official map of the County Assessor of the County
designating parcels by Assesso{s Parcel number.
"Available Funds" means the balance in the reserve fund established pursuant to the terms
of the Indenture in excess of the reserve requirement as defined in such Indenture, delinquent
special tax payments, foreclosure proceeds, the pertion of proceeds of Backup Special Tax
payments and Special Tax prepayments collec~d to pay interest on Bonds, and other sottrees
of funds available us a credit to the Special Tax Requirement as specified in st~h Indenture.
"Backup Special Tax" means the Special Tax that is required to be paid as a condition
precedent to the issuance ofbuildthg permits or reeordation of final maps, as determined in
accordance with Section E below.
"Bonds" means any bends or other debt (as defined in the Act), whether in one or more
series, issued by CFD No. 99-1 under the Act and secured by the levy of the Special Taxes.
"CFD Administrator" means an official of the City acting for and on behalf of CFD 99-1,
or designee thereof, responsible for determining the Special Tax Requirement and providing
for the levy and collection of the Special Taxes.
"CFD No. 99-1" means City of Chula Vista Community Facilities District No. 99-1 (Otay
Ranch SPA One - Portions of Village One, Village Five, and Village One West), as depicted
in Exhibit A.
"City" means City of Chula Vista.
Ci,ty of Chula Vista A~gust 17, 1999
Comrnuni~ Facilities District N o. 99-1 Page 2
"Commercial Property'-' means all Assessor's Parcels of Developed Property for which a
building permit(s) was issued for a non-residential use, excluding Community Purpose
Facility Property..
"Community Purpose Facility Property" means all AssessoPs Parcels of Developed
Property, which are classified as community purpose facilities and meet the requirements of
City of Chula Vista Ordinance No. 2452.
"Council" means the City Council of the City, acting as the legislative body of CFD No.
99-1.
"County" means the County of San Diego.
"Developed Property" means, for each Fiscal Year, all Taxable Property, exclusive of
Taxable Property Owner Association Property, for which a building permit for new
eoustroction was issued prior to March 1 of the prior Fiscal Year.
"Development Projection" means an annual calculation for each Planning Area of CFD No.
99-1 of: (i) the number and total Residential Floor Area of existing dwelling units of
Residential Property, the number of existing Acres of Commercial Property, and the number
of existing Acres of Community Purpose Facility Property, and (it) a projection of all future
development, including the acreage, projected number of residential dwelling traits, projected
Residential Floor Area, projected Commercial Property Acres, projected Commtmity
Purpose Facility Property Acres, and an absorption schedule for all future development
within CFD No. 99-l. The Development Projection shall be dated as ofMaroh 1 and
prepared each Fiscal Year by the Master Developer. Upon submittal, the CFD Administrator
shall review, modify if necessary, and approve the Development Projection. If the
Development Projection is not received by the CFD adminish~r on or before April 1 of
each year, the CFD Admimstrator shall then prepare or cause to be prepared a Development
Projection.
"Final Residential Subdivision" means a subdivision of property created by recordation of
a final map or parcel map, approved by the City pursuant to the Subdivision Map Act
(California Government Code Section 66410 et seq.), recordalton of a lot line adjustment
approved by the City which ereales a parcel for which a bulld/ng permit may be issued or
recordation ofa condominiurn plan pursuant to California Civil Code 1352 that ereales
individual lots for which residential building permits may be issued without further
subdivision of such property.
"Fiscal Year" means the period starting July 1 and ending on the following June 30.
"Indenture" means the indenture, fiscal agent agreement, trust agreement, resolution or
other instrument pursuant to which Bonds are issued, as modified, mended and/or
supplemented from time to time, and any instntment replacing or supplementing the same.
G(v of CImla Vista August 17, 1999
Community Facililies District No. 99-I Page 3
"Land Use Class" means any of the clasSes listed in Tables 1, 2, and 3 of Section C.
"Ma~er Developer" means the owner or owners of the piedominant mount of
Undeveloped Property in CYD No. 99-1.
"Maximum Annual Special Tax" means the maximum anntlal Special Tax, determined in
accordance with the provisions of Section C below, that may be levied in any Fiscal Year on
any Assessois Parcel of Taxable Property.
"Occupied Residential Property" means all Assessots Parcels 0fResidential Property,
which have closed escrow to an end user.
"Outstanding Bonds" means all Bonds, which remain otns~din~
"Planning Areas" means those areas shown on Exhibit C. Minor adjustments in the
boundaries of the Planning Axeas may be made by the CFD Admini~hator to conform to the
ternalive and final maps, lot line adjustment or other property line adjustment approved by
the City for these areas. The Planning Areas in Exhibit C existing at the time of formation of
CFD No. 99-1 may be expanded to include Annexation Parcels from time to time or
additional Planning Areas may be established to include Annexation Parcels from time to
lime.
"Property Owner Association Property" means any property w/thin the boundaries of
CFD No. 99-1 owned by or dedicated to a property owner association, including any master
or sub-association.
"Proportionately" means for Developed Property that the ratio of the actual Special Tax
levy to the Maximum Annual Special Tax is equal for all Assessor's Parcels of Developed
Property w/thin CFD No. 99-I. For Undeveloped Property, '~Proportionately" means that the
ratio of the actual Special Tax levy per Acre to the Maximum Annual Special Tax per Acre is
equal for all Assessor's Parcels of Undeveloped Property within CFD No. 99-1.
"Public Property." means any property w/thin the boundaries of CFD No. 99-1 that is used
for fights-of-way or any other purpose and is owned by or dedicated to the federal
government, the State of California, the County, the City or any other public agency.
"Residential Property" means all Assessoes Parcels of Developed Property for which a
building permit has been issued for purposes of constructing one or more residential dwetlhxg
"Residential Floor Area" me~.~ns all of the square footage of living area w/thin the perimeter
of a residential structure, not including any carport, walkway, garage, overhang, patio,
enclosed patio, or similar area. The determination of Residential Floor Area shall be made
City of Chula Vista August l 7, 1999
Community Facilities District No. 99- I Page 4
by reference to appropriate records kept by the City's Building Depadmem. Residential
Floor Area will be based on the building permit(s) issued for each dwelling unit prior to it
being classified as Occupied Residential Property, and shall not change as a result of
ndditioas or modifications made after such classification as Occupied Residential Property.
"Special Tax" means the: (i) annlaid special tax to be levied in each Fiscal Year on each
Assessors Parcel of Taxable Property to fund the Special Tax Requirement pm-suant to
Section D, and (ii) the Backup Special Tax required to be paid as a result of Changes in
development
"Special Tax Requirement" mean~ that amount required in any Fiscal Year for CFD No.
99-1 to: (i) pay nnnual debt service on all Outstanding Bonds as defmed in Section A; (ii) pay
periodic costs on the Bonds, including but not limited to, credit enhnncemunt and rebate
payments on the Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to
establish or replenish any reserve funds for aH Outstanding Bonds in accordance with the
Indenture; (v) and pay directly for acquisition and/or construction of facilities, which are
authorized to be financed by CTD No. 99-1; (vi) less a credit for Available Funds.
"State" means the State of California.
"Taxable Property" means all of the Assessors Parcels within the boundaries of CFD No.
99-I which are not exempt from the Special Tax pursuant to law or the provisions of
Section F below.
"Taxable Property Owner Association Property" means all Assessors Parcels of Property
Owner Association Property that are not exempt pursuant to the provisions of Section F
below.
"Trustee" means the trustee, fiscal agent, or paying agent under the Indenture.
"Undeveloped Property" means, for each Fiscal year, all Taxable Property not classified as
Developed Properly or Taxable Property Owner Association Property.
"Zone A" applies only to Developed Property, and means a specific geographic location
known as the Village One area as depicted in Exhibit A attached herein.
"Zone B" applies only to Developed Property, and means a specific geographic location
known as the Village Five area as depicted in Exhibit A attached herein,
"Zone C" applies only to Developed Property, and means a specific geographic location
known as the Village One West area as depicted in Exhibit A attached herein.
City of Chula ['}sta August 17, 1999
C ommtmt~2 Facilities District N o, 99-1 Page 5
B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, all Taxable Property within CFD No. 99-1 shall be classified as Developed
Property, Taxable Properly Owner Association Property, or Undeveloped Property, and shall
be subject to the levy of annual Special Taxes determined pursuant to Seelions C and D
below. Developed Property shall further be assigned to Zone A, Zone B, or Zone C.
The Maximum Annual Special Tax for an Assessors Parcel of Residential Propen'y shall be
based on the Resid~niiai Floor Area and the nmnher of the dwelling ~mits located on such
Assessor's Parcel. The Maximum Annual Special Tax for an Assessors Parcel of
Conmlereial Property ~ Commtlllity Purpose Facility Property shall be based on the
Acreage of such Assesso{s Parcel.
C. MAXIMUM ANNUAL SPECIAL TAX RATE
1. Developed Property
The MaximInn Annual Special Tax for each Land Use Class of Developed Property
within Zone A, Zone B, or Zone C shall be the applicable amount shown on Tables 1, 2,
and 3 below. The Maximum Annual Special Tax for each Assessor's Parcel of
Residential Property shall equal the specified mount per dwelling unit times the number
of dwelling anits on such Assessors Parcel plus the specified mount per square foot
times the square footage of Residential Floor Area on such Assessors Parcel.
TABLE 1
Maximum Annual Special Tax for Developed Property in Zone A (Village One)
Community Facilities District No. 99-1
Land Use
Class Description
I Residential Property
2
3
Commemial Property
Community Purpose Facility
Property
$0 per dwelling unit + $.28 per
square foot of Residential Floor
Area
$1,600 per Acre
$400 per Acre
Ci,ty ofChula F~sta August 17, 1999
~ Communi,tv Facilities District ~, 99- ] Page 6
TABLE 2
Maximum Annual Special Tax for Developed Property in Zone B (Village Five)
Community Facilities District No. 99-1
Land Use
Class Description
1 Residential Property
Commercial Property
Comm~mit~ Purpose Facility Property
Maximum Annual Special
Tax
$400 per dwelling unit +$29
per square foot of Residenlial
Floor Area
$3,717 per Acre
$929 per Acre
TABLE 3
Maximum Annual Special Tax for Developed Property in Zone C (Village One West)
Community Facilities District No. 99-1
Land Use
Class Description
1 Residential Property
2
3
Commercial Property
Community Purpose Facility Property
Maximum Annual Special
Tax
$400 per dwelling unit + $.44
per square foot of Residential
Floor Area
$4,266 per Acre
$1,066 p~ Acre
2. Undeveloped Property and Taxable Property Owner Association Property
The Maximum Annual Special Tax for each Assessor's Parcel classified as Undeveloped
Property and Taxable Property Owner Association Property shall be $8,864 per Acre.
METHOD OF APPORTIONMENT OF TIlE SPECIAL TAX
Commencing with Fiscal Year 1999-2000 and for each following Fiscal Year, the
Council shall determine or cause to be detennined the Special Tax Requirement and shall
determine or came to be determined the applicable annual Special Tax so that the mount
of Special Taxes equals the Special Tax Requirement for such Fiscal Year. The annual
Special Tax shall be calculated and levied each Fiscal Year as follows:
First: The Special Tax shall be levied Proportionately on each Assessox's Parcel of
Developed Property within Zone A, Zone B, or Zone C at up to 100% of the applicable
Maxima Annual Special Tax to satisfy the Special Tax Requirement.
Ci~ ofChula l/ista August 17, 1999
Commmu(v Facilities District lfo. 99-1 Pttge 7
Second: ffadditional moneys are needed to satisfy. the Special Tax Requirement after the
first step has been completed, the Special Tax shall be levied Proportionately on each
Assessois Parcel of Undeveloped Property at up to 100% of the Maximum Annual
Special Tax for Undeveloped Property.
Third: If additional moneys are needed to satisfy the SI~ial Tax Reqticment after the
first two st~ have been completed, then the Spe~:ial Tax shall be levied Proportionately
on ~ach Assessoes Parcel of Taxable Property Owner Association Properly and Public
Property, ff applicable, as provided for in Section F at up to the Maximum P. nmlal
SpeCial Tax for Taxable Property Owner Association Property and Public Property, if
applicable.
NotwithstaDding,.he above, under no cire~wa~ances will the Special Tax levied ~ainSt
any Assessor's Paxeel of Occupied Residential Propen'y be incw, ased by more than ten
percent per year as a consequence of delinquency or default in the payment of Special
Taxes by the owner of any other Assesso~'s Pamel of CFD No. 99-1.
BACKUP SPECIAL TAX
The following definitions apply to this Section E:
"Actual Average Special Tax Per Unit" means, for each Planning Area, the Actual
Special Tax Revenue divided by the sum of the number of units included in any currein
bullcling permit application(s) plus the number of units within such Planning Area for
which building permits have previously been issued. Any Residential Floor Area created
by building permits issued after an Assessors Parcel has been classified as O~cupied
Residential Property shall not be included in determining the Actual Average Special Tax
Per Unit.
"Actual Special Tax Revenue" mean~, for each Planning Area, the sum of the total
Residential Floor Area shown on any current building permit application(s) plus the total
Residential Floor Area from any previously issued building pernuts within the Planning
Area multiplied by the applicable Maximum Annual Special Tax, Any Residential Floor
Area created by building permits issued after an Assesso~'s Parcel has been classified as
Occupied Residential Property shall not be included in determining the Actual Special
Tax Revenue.
"Backup Special Tax Fund" means, for each Planning Area, the fund or account
identified in the Indenture to hold Backup Special Tax payments received from property
owners within such Planning Area.
"Expected Special Tax Revenue" means, with respect to each Planning Area, the
mount shown in the column so labeled in Tables 4, 5, and 6.
City ofClmla l~sta
Commtmi,tv Facilities District No.
August 17, 1999
Page 8
"Required Average Special Tax Per Unit/Acre" means, for each Planning Area, the
Expected Special Tax Revenue divided by the total expected number of dwelling units or
non-residential Acres (as applicable) expected to be developed within file Planning Area,
as determined by the CFD Adminlsttator based on tentative maps, Final Residential
Subdivision m~aps, the Development Projection, and all other relevant information
available to the CFD _Admini~tor. In cases where residential and non-residential
property ale both included within a planning Area, the CFD Admini~lttor may adjust file
Required Average Special Tax Per Unit/Acre as neeessmy.
*'Share of Annual Debt Service" means, for each Planning Area, the maximum annual
debt service on file Bonds multiplied by that Planning Ama's percentage of file total
Special Tax revenuc,.as shown in Table 4, 5, and 6 below. A Planning Ama's Share of
Annual Debt Sendee shall be adjusted to reflect any prepayments within that Planning
Area_
1. Expected Development and Special Tax Revenues
Tables 4, 5, and 6 below identify the amount of development and Special Tax revenue
that is currently expected ~'om each Planning Area in Zone A, Zone B, or Zone C.
Tables 4, 5, and 6 may be revised by the CFD Adminigtrator if file Planning Area
boundaries are modified as a result of the annexation of Annexation Parcels to CFD
99-1 or otherwise.
The owner of file Annexation Parcels, upon such annexation, shall provide'file CFD
Administrator the total number of residential units or the total number of non-
residential Acres, and file total Residenlial Floor Area expected to be developed
within the land area of such Annexation Parcels. The CFD Adraini~a~tor shall util/ze
this information to modify Tables 5 and 6 to include the additional Expected Special
Tax Revenue, and to recalculate the percent of total revenue for each Planning Area.
City ofChula Ir~sta Augnat 17, 1999
Community Facilities District No. 99- I Page 9
TABLE 4
Expected Development and Special Tax Revenue by Planning Area within Zone A
Community Facilities District No. 99-1
PI_A_NNING
AREA
R-6
R-7
R-9
R-10
R-t2
R-13
R-14
R-15
R-16
R-17
R-18
R-19
R-20
R-21
R47
R48
C-1
CPF-1
CPF-2
TOTAL
NUMBER
OF
EXPBCTED UNITS/
PRODUCT TYPE ACRES
Residential Property 77 units
Residential Property 131 units
Residential Property 74 units
ResideWdal P/operty 123 units
Residential Property 83 units
Residential Property 88 units
Residential Property 139 units
Residential Prol~erty 464 umts
Residential Property 115 units
Residential Propert2y 98 tatits
Residential Property 74 units
Residential Property 204 units
Residential Property 160 units
Residential Property 168 units
Residential Property 174 units
Residential Property 96 units
Commercial 8.1 acres
Property
Commullity Pllrpose 1.5 acres
Facility Property
Commtlllity Purpose 4.5 acres
Facility Property
2,268 units
TOTAL
RESIDENTIAL
FLOOR AREA
179,872
411,078
182,928
324,351
168,988
146,256
215 589
.464 000
178 365
199 528
122988
204 000
160 000
168 000
174,000
195,456
N/A
N/A
N/A
EXPECTED
SPECIAL PERCENT
TAX OF TOTAL
REVENUE REVENUE
50,364 5.07%
115,102 11.58%
51,220 5.15%
90,818 9.14%
47,317 4.76%
40,952 4.12%
60,365 6.07%
129,919 13.07%
49,942 5.02%
55,868 5.62%
34,437 3.46%
57,120 5.75%
44,800 4.51%
47,040 4.73%
48,720 4.90%
54,728 5.51%
12,960 1.30%
600 0.06%
1,800 0. 18%
$994,072 100.00%
Ci.tv of Chula Vista
Cornmuni.tv Facilities District No. 99-1
l. ugust 17, 1999
page 10
TABLE 5
Expected Development and Special 'Tax Revenue by Planning Area within Zone B
Community Faeilifies District No, 99-1
NUMBER EXPECTED
OF TOTAL SPECIAL PERCENT
PLANNING EXPECTED UNITS/ RESIDENTIAL TAX OF TOTAL
AREA PRODUCT TYPE ACRES FLOOR AREA. REVENUE REVENUE
R-25 Residential Property 48 units 150,624 62,881 6.23%
R-26 Residgntial Property 52 units 137,124 60,566 6.00%
R-27 Residential Property 37 units 75~332 36,646 3.63%
R-28 Residential Property 56 units 93,072 49,391 4.89%
R-29 Residential Property 83 units 128,733 70,533 6.98%
R-30 Residential Property 119 taxits 197,778 104,956 10.39%
R-31 Residgntial Property 71 units 144,556 70,321 6.96%
R-32 Residential Property 105 units 259,560 117,272 11.61%
R-33 Residential Property 47 units 123,939 54,742 5.42%
R-34 Residential Property 35 units 92,295 40,766 4.04%
R-35 Residential Property 36 units 112,968 47,161 4.67%
R-36 Residential Property 62 units 153,264 69,247 6.86%
R-37 Residential Property 60 units 99,720 52,919 5.24%
R-38 Residential Property 43 units 87,548 42,589 4.22%
R-39 Residential. Property 182 units 182,000 125,579 12.43%
CPF-5 Community Purpose 4.7 acres N/A 4,366 0.43%
Facility Property
TOTAL 1,036 units $1,009,935 100.00%
Ci~, of CImla Vista August 1Z 1999
Comtram~,tv Facilities District No. 99-I Page 11
TABLE 6
Expected Development and Special Tax Revenue by Planning Area within Zone C
Community Facilities District No. 99-1
PLANNING
AREA
R-49A
R-50
R-51A
R-52A
R-53
R-54A
R-55
R-56
R-57
R-58
R-59
R-60
TOTAL
EXPECTED
PRODUCT TYPE
Residential Property
Residential Property
Residential Property
Residential Property
Residential Property
Residential Property
Residential Property.
Residential Property
Residential Property
Residential Property
Residential Property
Residential Propernt
NUMBER
OF
UNITS/
ACRES
88 umts
86 units
66 units
69 units
36 units
9 anits
57 units
77 traits
22 units
102 units
55 units
86 units
753 units
EXPECTED
TOTAL SPECIAL PERCENT
RESIDENTIAL TAX OF TOTAL
FLOOR AREA REVENUE REVENUE
179,168 $114,034 9.91%
212,592 127,940 11.12%
174,042 102,978 8.95%
216,522 122,870 10.67°/o
112,968 64,106 5.57%
18,324 11,663 1.01%
116,052 73,863 6.42%
169,400 105,336 9.15%
54,384 32,729 2.84%
320,076 181,633 15.78%
145,035 85,815 7.46%
212,592 127,940 11.12%
$1,150,907 100.00%
2. Calculation ofRequired Average Special Tax Per Unit/Acre
At the time the fh-st building permit applicalion for a Planning Area is submitted to the
City, the CFD Administrator shall calculate the Required Average Special Tax Per
Unit/Acre.
3. Backup Special Tax due to Loss of Units/Acres
If at any time after the Required Average Special Tax Per Unit/Acre has been calculated
initially for a Planning Area, the CFD Administrator determines that based on tentative
maps, Final Residential Subdivision maps, the Development Projection, and any other
available information there has been a reduction in the total expected number of dwelling
units or non-residential Acres within that Planning Area, then a Backup Special Tax
payment shall be required for each lost unit or Acre prior to the issuance of any additional
building permits or the recordation of any additional final maps for such Planning Area.
City ofChula Fista August 17. 1999
Communi~ Facilities Distract No. 99-1 Page 12
4. Backup Special Tax due to Loss of Residential Floor Area
For Planning Areas that include Residential Property, before each building permit (or
group of permits) is issued, the CFD Administxator shall calculate the Actual Average
Special Tax Per Unit for the Planning Area. fithe Actual Average Special Tax Per Unit
is less than the Required Average Special Tax Per Unit then a Backup Special Tax
payment will be required prior to issuance of the building permit(s) included within the
calculation.
5. Calculation of Backup Special Tax
The Backup Special Tax payment mount will be calculated using the prepayment
formula described in Section L 1, with the following exceptions: (i) if the Backup Special
Tax is required as a result of Section E.3, then the mount used in Paragraph No. 1 of the
prepayment formula described in Section I_ 1 shall equal the number of lost units or
Acres, as applicable, times the Required Average Special Tax Per Unit/Acre. In the
event Residential Property as identified in Tables 4, 5, and 6 is rezoned in whole or part
to non-residential property, the CFD Administrator shall determine the Maximum Annual
Special Tax revenue by using the Developed Property rates applicable to such non-
residential property and the amount so derived shall be applied as a reduction to the
amount determined in the preceding sentence; (ii) ff the Backup Special Tax is required
as a result of Section E. 4, then the mount used in Paragraph No. 1 of the prepayment
formula descnt~t in Section L 1 shall equal the difference between the Actual Average
Special Tax Per Unit and the Required Average Special Tax Per Unit times lhe sum of
the number of units for which permits are being issued plus the number of units within
the p) _annIng Area for which bullcling permits have previously been issued. The amount
determined pursuant to the preceding senten~ shall be reduced by the balance in the
Backup Special Tax Fund that has been established for such Planning Area; (iii) in
Paragraph No. 7 of the prepayment formula described in Section I. 1, compute the amount
needed to pay Laterest on the Bond Redemption Amount until the first redemption date
that occurs after five years fi'om the date of the first Backup Special Tax payment In the
Planning Area; (iv) any Backup Special Tax payments received for a Planning Area (less
Administrative Fees and Expenses) shall be deposited into the Backup Special Tax Fund
for that Planning Area and disbursed pursuant to the Indenture; and (v) the Maximum
Annual Special Taxes applicable to property within a Planning Area shall not be reduced
or relieved as a result of payment of the Backup Special Tax.
6. Use/Release of Backup Special Tax Payments
When a Planning Area reaches full buildout (i.e., all expected building permits have been
issued), the CFD Administrator shall calculate the actual Developed Property Maximum
Annual Special Tax revenues that will be generated f~om such Planning Area, If the
actual Developed Property Maximum Annual Special Tax revenues are greater than or
eq,.ml to 1.1 times that Planning Area's Share of Annual Debt Sen4ce, the balance in the
CiO, ofCtmla )~sta Augnat 17. 1999
Community Facilities District No. 99-] PaRe 13
Backup Special Tax Fund shall be returned m the payer. If Backup Special Taxes have
been paid by more than one entity, the mount of Baclmp Special Taxes returned to each
payer shall be in proportion to the. mount paid by each entity. If the actual Developed
Property IllIll Anntlal Special Tax revenues are less than 1.1 times that Planning
Ama's Share of Annual Debt Setdee, then to the extent necessary to generate 110%
coverage, the balance in the Backup Special Tax Fund shall be used to redeem bonds on
the next available redemption date. Any moneys remaining in Backtip Special Tax Fund
~hall be returned to the peyer. If a Planning Area has not reached full buildout within
five years after the first payment ofBaclmp Speeial Taxes for such Planning Area, then
all moneys in the Backup Special Tax Fund shall be used to redeem bonds on the next
available redemption date.
F. EXEMFIIONS
No Special Tax shall be levied on: up to 517.5 Acres of Propert3, Owner Association
Property and Public Property. Tax-exempt status will be irrevocably assigned by the CFD
Administrator in the chronological order in which property becomes Property Owner
Association Property or Public Property.
After the limit of 517.5 exempt Acres has been re. ached, the Maximum Annual Special Tax
obligation for any additional Public Property shall be prepaid in full purs,,ant to Section I. 1,
prior to the tmnsfer/dedicahon of such property. Until the Maximum Annual Special Tax
obligation for any such property. is prepaid, the property shall continue to be subject to the
levy of the Special Tax as Undeveloped Property.
Taxable Property Owner Association Property shall be subject to the levy of the Special Tax
Underdeveloped Property and shall be taxed Proportionately as part of the third step in
Section D above, at up to 100% of the Maximum Annual Special Tax for Taxable Property
Owner Association Property.
G. REVIEW/APPEAL COMMITTEE
The Council shall establish as part of the proceedings and administration of CFD No. 99-1 a
special three-member Review/Appeal Committee. Any landowner or resident who feels that
the amount of the Special Tax levied on their Assessor's Parcel is in error may ~e a written
notice with the Review/Appeal Committee appealing the mount of the Special Tax levied on
such Assesso~'s Parcel. The Review/Appeal Committee may establish such pmcedttres, as it
deems necessary to undertake the review of any such appeal. The Review/Appeal
Committee shall inteqxet 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.
Ci(y of Ctada Vlsta August 17, 1999
Cornmunay Facilities District ~.~. 99-1 Page 14
H. MANNER OF COLLECTION
The annual Special Tax shall be collected in the same manner and at the same time as
Ordinary ad valorera property taxes; provided, however, that CFD No. 99-1 may directly bill
the Special Tax, may collect Special Taxes at a ~t time or in a different manner if
necessary to meet its financial obligations, and may covenant to foreclose and may actually
foreclose on Assessors Parcels, which m delinquent in the troymerit of Spec'ml Taxes.
Tenders of Bonds may be accepted for payment of Sp~'ml Taxes upon the mrms and
conditions established by the Council pursuant to the Act. However, the use of Bond tenders
shall only be allowed on a case-by-case basis as specifically approved by the Council.
L PREPAYMENT OF SPECIAL TAX
The following definitions apply to this Section
"CFD Public Facilities means either $31.6 million 1999 dollars, which shall increase by the
Construction Inflation Index on July I, 2000, and on each July 1 thereaRer, or such lower
number as (i) shall be determined by the CFD Administrator as sufficient to provide the
public facilities under the authorized bonding program for CFD No. 99-1, or (ii) shall be
determined by the Coun(d concurrcmly with a covenant that it will not issue any more Bonds
to be supported by Special Taxes levied under this Rate and Method of Apportionment as
described in Section D.
"Construction Fund" meang an account specifically identified in the Indenture to hold
funds that are currently available for expenditure to acquire or construct public facilities
eligible under the Act.
"Construction Inflation Index" means the annual percentage change In the Engineering
News-Record Building Cost Index for the City of Los Angeles, measured as of the calendar
year, which ends in the previous Fiscal Year. In the event thi~ index ceases to be published,
the Construction Inflation Index shall be another index as determined by the CFD
Administrator that is reasonably comparable to the Engineering New-Record Building Cost
Index for the City of Los Angeles.
"Future Facilities Costs" means the CFD Public Facilities minus public facility costs
available to be funded through existing constrtmtion or escrow accounts or funded by the
Outstanding Bonds as defined in Section A, minns public facility costs funded by interest
earnings on the Construction Fund actually earned prior to the date of prepayment, and minus
public facilities costs paid directly with Special Taxes.
"Outstanding Bonds" means all previously issued Bonds, which will remain outstanding
after the first treerest and/or principal payment date following the current Fiscal Year,
Ci,tv ofChula I~tsta August 17, 1999
Community Facilities Dismet No. 99-1 Page 15
excluding Bonds m be redeemed at a later date with the proceeds of prior prepayment of
Maxinltllll Annllal Special Taxes.
1. Prepayment in Full
The Maximum Annual Special Tax obligation may only be prepaid and permanently
satisfied by an Assessors Parcel of Developed hopefly, Undeveloped Property for winch
a bullding p~xmit hn~ ~ issued, or Public Property. The Maximum Anmlal Special
Tax obligation applicable to such Assessors Parcel may be fully prepaid and the
obli~fion of the Assessors Parcel to pay the Special Tax permanently ~ntisfied as
described herein; provided that a prepayment may be made only ff there are no delinquent
Special Taxes with respect to such Assessors Parcel at the lime of prepayment An
owner of an Assessors Parcel intonding to prepay the Maximum Anmml Special Tax
obhgation shall provide the CFD Admini.~Uator with written notice of intent to prepay.
Within 30 days of receipt of such written notice, the CFD Admin~hutor shall notify such
owner of the prepa.vment amount of such Assessors Parcel. The CFD Admini~Intor may
charge a reasonable fee for providing this figure. Propayment must be made not less than
45 days prior to the next occurring date that notice of redemption of Bonds from the
proceeds of such prepayment may be given to the Trustee pursuant to the indenture.
The Prepayment Amount (defined below) shall be calculated as summarized below
(capitalized t~tms as defined below):
Bond Redemption Amount
less
less
Total: equals
Redemption Premium
Future Facilities Amount
Defeasance Amount
Administrative Fees and Expenses
Reserve Fund Credit
Capitalized interest Credit
Prepayment Amount
As of the proposed date of prepayment, the Prepayment Amount (defined below) shall be
calculated as follows:
Paragraph No.:
1. ForAssessofs Parcels of Developed Property, compute the Maximum Annual Special
Tax for the Assessors Parcels to be prepaid, For Assessors Parcels of Unaeveloped
Property to be prepaid, compute the Maximum Annual Special Tax for that Assessor's
Parcel as though it was already designated as Developed Property, based upon the
building permit, which has already been issued for that Assessors Parcel. For
Assessors Parcels of Public Proparty to be prepaid, compute the Maximum Annual
Special Tax for that Assessors Parcel.
C i~ of Chula lrtsta
Commsmi~ Facilities Dist~ct No. 99~1
August 17, 1999
Page 16
Divide the Msximum Ann~a] Special Tax computed pursuam to paragraph l by the
sum of the total expected Special Tax revenues in Tables 4, 5, and 6 in Section E,
excluding any Assessors Parcels, which have been prepaid,
Multiply the quotiem computed pursnsnt to paragraph 2 by the OnlStaVding Bonds tO
compute the mount of Oulstanding Bonds to be mired and prepaid (the "Bond
Redemption Amount'~.
Multiply the Bond Redemption Amount computed pun~,nnt 1o paragraph 3 by the
applicable redemption premium. if any, on the Ontsta.nding Bonds to be redeemed
( the "Redemption .Premium '~.
Compute the Future Facilities Costs.
Multiply the quotient computed pursuant to paragraph 2 by the mount determined
pursuant to paragraph 5 to compute the mount of Ftrture Facilities Costs to be
prepaid (the 'Truture Facilities Amount").
Compute the mount needed to pay intenst on the Bond Redemption Amount from
the first bond interest and/or principal payment date following the cuLtrent Fiscal Year
until the earliest redemption date forthe Outstanding Bonds.
g. Confirm that no Special Tax delinquencies apply to such Assessors Parcel.
9. Determine the Special Taxes levied on the Assessoes Parcel in the eraTent Fiscal
Year, which have not yet been paid.
10.
Compute the minimum mount the CFD Admini~hator reasonably expects to derive
from the reinvestment of the Prepayment Amount less the Future Facilities Amount
and the Administrative Fees and Expenses from the date of prepayment until the
redemption date for the Outstanding Bonds to be redeemed with the prepayment.
11. Add the mounts computed pursuant to paragraphs 7 and 9, and subtract the amount
computed pursuant to paragraph I0 (the 'Defeasance Amount'').
12. Verify the administrative fees and expenses of CFD No. 99-1, including the costs of
computation of the prepayment, the costs to invest the prepayment proceeds, the costs
of redeeming Bonds, and the costs of recording any notices to evidence the
prepayment and the redemption (the %4dministrative Fees and Expenses'~.
13. The reserve fund credit (the "Reserve Fund Credit'') shall entual the lesser oe (a) the
expected reduction in the reserve requirement (as defined in the Indenture), if any,
associated w/th the redemption of Outstanding Bonds as a result of the prepayment,
Ci~FofChula lqsta ,august 17. 1999
Commmu,tv Facilities District Ato. 99~1 page 17
or (b) the amount derived by subWacting the new reserve requirements ( as deftned in
the Indenutre) in effect after the redemption of Outstanding Bonds as a result of the
prepaymem from the balance in the reserve fund on the prepaymeut date, but in no
event shall such mount be less than zero.
14. If any capilalized interest for the OutsUmdinE Bonds will not have been expended at
the lime of the first interest and/or principal payment following the current Fiscal
Year, a capilaliTed interest credit shall be calcttlalt~d by mulliplying the quotiem
computed pu~uant m paragraph 2 by the cx~'tcd b~ls-ce in the c~dmlized interest
fund after such first roterest and/or principal payment (the "CapitalSzed Interest
Credit'3.
15.
The Maximum AJinual Special Tax prepayment is equal to the sum of the amounts
computed punuant to paragraphs 3, 4, 6, 11, and 12, less the amounts computed
pursuant to paragraphs 13 and 14 (the "Prepayment Amount'3.
16.
From the Prepayment Amount, the amounts computed pttrsuant to paragraphs 3, 4,
11, 13, and 14 shall be deposited into the appropriate fund as established under the
Indenture and be used to retire Outstanding Bonds or make debt service payments.
The amount computed pursuant to paragraph 6 shall be deposited into the
Construction Fun& The mount computed pursuant to paragraph 12 shall be retained
byCFDNo. 99-1.
The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of
Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be
retained in the appropriate fund established under the Indenture 1o be used with the next
prepayment of bonds or to make debt service payments.
As a result of the payment of the current Fiscal Year's Special Tax levy as determined
under paragraph 9 (above), the CFD Admini~h ator shall remove the current Fiscal Year's
Special Tax levy for such Assessoes Parcel from the County tax rolls. With respect to
any Assessors Parcel that is prepaid, the Board shall cause a suitable notice to be
recorded in compliance with the Act, to indicate the prepayment of Spec'ml Taxes and the
release of the Special Tax lien on such Assessors Parcel, and the obligation of such
Assessors Parcel to pay the Special Tax shall cease.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the
amount of Maximum Annual Special Taxes that may be levied on Taxable Property
within CFD No. 99-1 both prior to and after the proposed prepayment is at least 1.1 times
the maximum annual debt service on all Outstanding Bonds.
Tenders of Bonds in prepayment of Maximm Annual Special Taxes may be accepted
upon the terms and conditions established by the Council pursuant to the Act However,
Ci,ty of Chula Ft~ta tngust 17. 1999
Communi.tv Facihtdes District No. 99-1 Pt~le 18
the use of Bond tenders shall only be allowed on a case-by-case basis as specifically
approved by the Council.
2. Prepayment in Part
The Maximum Annual Special Tax on an Assessors Parcel of Developed Property or
an Assessors Parcel of Undeveloped Property for which it building permit has been
issued may be partially prepaid. The amo, mt of the prepaymem shall be calculated as
in Seetion L1; except that a partial prepayment shall be calculated according to the
following formula:
PP=PExF
These terms have ihe following meaning:
PP = the partial prepayment
PE = the Prepayment Amount calculated according to Section I. 1.
F = the percent by which the owner of the Assessors Parcel(s) is partially prepaying
the Maximum Annual Special Tax.
The owner ofun Assessors Parcel who desires to partially prepay the Maximum
Annual Special Tax shall notify the CFD Administrator of(i) such owner's intent to
partially prepay the Maximum Alltnual Special Tax, (ii) the percentage by which the
Maximum Annual Special Tax shall be prepaid, and (iii) the company or agency that
will be acting as the escrow agent, ff applicable. The CFD Admini~hator shall
provide the owner with a statement of the amount required for the partial prepayment
of the Maximum Annual Special Tax for an Assessors Pamel within 30 days of the
request and may charge a reasonable fee for providing this service.
With respect to any Assessors Parcel that is partially prepaid, the City shall (i)
distribute the funds remitted to it according to Paragraph 16 of Seelion L 1, and (ii)
indicate in the records of CYD No. 99-1 that there has been a partial Fifepayment of
the Maximum Annual Special Tax and that a portion of the Maximum Annual Special
Tax equal to the outstanding percentage ( 1.00 - F) of the remaining Maximum Annual
Special Tax shall continue to be authorized to be levied on such Assessors Parcel
pursuant to Section D.
J. TERM OF MAXIMUM ANNUAL SPECIAL TAX
The Maximum Annual Special Tax shall be levied commencing in Fiscal Year 1999-
2000 to the extent necessary to fully satisfy the Special Tax Requirement for a period
no longer than the 2034-2035 Fiscal Year.
Ci,tv ofCImla lasta August 17. 1999
Comraunitv Facilities District No. 99-1 page 19
RO99-3
OTAY WA~ DISTRICT C_d)Lj~ COURSE R,IK)ROANIZ. A, TION .~a'.~NEXA'rlON
OF C~A ~TA ~D D~ACIBT FROM
ALL THAT PORTION OF SECTIONS 23 AND 26, TOWNSHIP 17 SOUTH, RANGE I WEST,
SAN BEKNARDINO BASE AND MERIDIAN, IN THE COUNTY OF SAN DIEGO, STATE OF
CAI,~A, ACCORDING TO UNTItD STAT'E~ OOYEKNI~ SUR%~:Y, LYING
WITHIN THE FOLLOWING DESCRIBED BOUNDS:
BEGINNING AT 'HIE SOUTHWEST CORNER OF SAID SECTION 2,3, SAID POINT BEING
ON THE WEST BOUNDARY OF RECORD OF SURVEY MAP NO. 8514, RECORDED ON
MAY 29, 19gO IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, AS
FILE NO. 80-174~04;
1. THENCE NORTH 02'24'36' EAST, 1975.94 FEET ALONG THE WESTERLY LINE OF
SAID SF-C'~ON 23 TO THE S0~Y LINE OF THE NORTIP, VEST QUARTER OF
THE NORTHWEST QUARTER OF THE SO~T QUARTER OF SAID SECTION 23;
lt-IENCE SOUTH 89'01'13' EAST, 6J4. t9 ~ ALONG SAID SOUTHERLY LINE TO
THE .EASTERLY LINE OF SAID NORTHWEST QUARTER OF THE NORTHWEST
QUARTER OF THE SOUTHWEST QUARTER OF SAID SECTION 23;
3. THENCE NORTH 02°00'05" FAST, 659.32 FEET ALONG SAH) EASTERLY LINE TO THE
SOUTHERLY LINE OF THE NORTHWEST QUART~ OF SAID SECTION 23;
THENCE SOUTH 89'05'19' EAST,.649.52 FLEET ALONG-SAID SOUTHERLY LINE TO
THE WESTERLY LINE OF THE EAST HALF OF THE NORTHWEST QUARTER OF SAID
SECTION
5. THENCE NORTH 00'44'02" EAST, 2644;43 FE~T ALONG SAID WESTERLY LINE TO
THE NORTFt-,EEL Y LIN~ OF SAID SECTION 23;
6. THENCE NORTI-I 89°45'20" EAST, 130138 FEET ALONG SAID NORTHERLY LINE TO
THE NORTH QUAR'f'ER CORNER ~F;
TIENCE CONTXNVlq~G ALONG SAID NORTHeY LINE, SOUTH 87'03'12' ~,
1~3.~ TO 1~ FAS~LY L~E OF ~ ~T t~LF OF THE ~ST ~F OF S~D
SE~ION 23;
EXI-HBITA
PAGE 1 OF 2
EXH B'IT A
THENCE SOUTH 01 °09'37" WE. ST, 2622_27 FEET ALONG SAID F_.ASTERLY LINE TO AN
ANGLE POIl,fir 'lq-IEPJ~'N;
9. THENCE CONTINUING ALONG SAID EASTERLY IJNE, 'SOU'f~ 00°58'32" WEST,
265228 F~ET TO THE SO~ST CORNER OF TI{E WEST HALF OF TI3,E FAST HALF
OF SAID SECTION 23, BEING ALSO T~E NORTHEAST CORNER OF THE NORThWIlT
QUARTI~R OF THE NORIHEAS'T QUARTER OF SECTION 26, SAID TOWNSflIP AND
]0. THENCE SOUTH 00°49'03" WEST, 1325.87 FEET ALONG THE EASTERLY LINE OF
SAID NO RTIt',VEST QUARTER OF.THE NORTHEAST QUARTER TO THE SOUTHEAST
CORNER THEREOF:
THENCE NORTH gg042'42' WEST, 4000.92 FEET ALONG TIlE SOUTHERLY LINE OF
SAID NORTHWEST QUARTF~ OF THE NORTHEAST QUARTER AND ALONO THE
SOUTHERLY LINE OF THE NORTH HALF OF THE NORTHWEST QUARTER OF SAID
SE.C'F|ON 26 TO ~ WESTERLY LINE TI-IEREOF;
12. THF..NCE NORTH 00'26'19' EAST, 1318.19 FEET ALONG SAID WESTF:~LY LiNE TO
THE POtNT OF BEGINNING.
1J ,121999
EXHIBIT A
PAGE 2 OF 3